HAMILTON, Bermuda, Feb. 24, 2003 (PRIMEZONE) — Frontline Ltd. (NYSE:FRO) reports earnings before interest, tax, depreciation, and amortisation including earnings from associated companies (EBITDA) of $105.3 million and net income of $67.1 million for the fourth quarter of 2002. Earnings per share for the quarter were $0.88.
The average daily time charter equivalents (“TCEs”) earned by the Company’s VLCCs, Suezmax tankers, and Suezmax OBO carriers were $30,900, $25,300 and $24,200, respectively, compared with $16,900, $14,300 and $13,400, respectively in the immediately preceding quarter.
Net interest expense for the quarter was $12.2 million compared to $18.1 million in the same period in 2001. This decrease reflects the reduction in interest rates in the period. At December 31, 2002 approximately 74 per cent of the Company’s total debt is floating. Other financial items for the quarter were positive $14.5 million. This includes a positive $13.6 million for the market value adjustment on the Company’s Equity Swap Line based on the revaluation of 2,695,000 shares to the market price of $8.85 at quarter end from $3.82 per share at September 30, 2002. The strengthening of the Yen against the U.S. Dollar in the fourth quarter of 2002 resulted in an unrealised foreign currency exchange loss of $4.3 million due to the revaluation of Yen debt in certain subsidiaries and a loss of $2.0 million included within the share of results from associated companies.
For the year ended December 31, 2002, the Company had EBITDA of $226.9 million and a net loss of $6.9 million. Loss per share for the 2002 year was $0.09. This compares to EBITDA, net income and earnings per share of $528.8 million, $382.7 million and $4.99, respectively for 2001. The TCEs earned by the Company’s VLCCs, Suezmax tankers, and Suezmax OBO carriers for year 2002 were $22,500, $18,400 and $17,700, respectively, compared with $40,800, $30,700 and $28,900, respectively in 2001. The net loss for 2002 is after a charge of $14.1 million relating to the adoption of Financial Accounting Standard 142 “Goodwill and Other Intangible Assets.” The Company adopted FAS 142 effective January 1, 2002 and recognised an impairment loss on goodwill that is shown separately in the consolidated statement of operations as a cumulative effect of change in accounting principle. Net income for 2002 before the cumulative effect of change in accounting principle was $7.2 million and earnings per share were $0.09.
Net interest expense for 2002 was $59.8 million (2001 — $78.8 million). This decrease reflects the benefit of lower interest rates on outstanding debt. Other financial items for 2002 were a charge of $6.6 million (2001 — charge of $5.7 million). In 2002 other financial items includes a charge of $4.0 million relating to the market value adjustment on the Company’s Equity Swap Line and a $3.0 million charge relating to the market value adjustments for interest rate swaps. The strengthening of the Yen against the U.S. Dollar from 131.14 at December 31, 2001 to 118.54 at December 31, 2002 resulted in an unrealised exchange loss of $12.3 million in 2002. In addition, there is an unrealised exchange loss of $5.8 million included within the share of results from associated companies. At December 31, 2002, the Company has Yen debt (including our share of associated companies) of Yen 20.3 billion, compared with Yen 23.7 billion and Yen 35.5 billion at September 30, 2002 and December 31, 2001, respectively.
The full report is enclosed on the following link: http://reports.huginonline.com/892970/113972.pdf
CONTACT: Frontline Inger M. Klemp +47 14 41 295 6935 +47 14 41 295 3494 www.frontline.bm