Fourth Quarter and Full Year 2017 Results
FRO - Fourth Quarter and Full Year 2017 Results
Frontline Ltd. (the "Company" or "Frontline"), today reported unaudited results
for the three months and year ended December 31, 2017:
Highlights
* Reports net loss attributable to the Company of $248.4 million, or $1.46 per
share, for the fourth quarter of 2017, including non-cash impairment losses
of $255.8 million
* Reports net income attributable to the Company adjusted for certain non-cash
items of $5.0 million, or $0.03 per share, for the fourth quarter of 2017.
* Reports net loss attributable to the Company of $264.9 million, or $1.56 per
share, and a net loss adjusted for certain non-cash items of $4.4 million,
or $0.03 per share, for the year ended December 31, 2017.
* Agreed with Ship Finance to terminate the long-term charter for the 1998-
built VLCC Front Circassia.
* Extended the terms of its senior unsecured loan facility of up to $275.0
million facility with an affiliate of Hemen Holding Ltd. by 12 months to
November 2019.
Robert Hvide Macleod, Chief Executive Officer of Frontline Management AS
commented:
"The spot rates in the fourth quarter were weak, as inventory draws impacted a
freight market that was already suffering from high fleet growth. At the same
time, the key drivers for the tanker market, crude oil demand and the world
economy remain strong, and we may also be nearing the end of the cycle of
inventory draws. The headwind factors experienced in 2017 could turn in our
favour possibly towards the end of the year. The quarter shows Frontline's
resilience in weak markets, which is the direct result of low break-even levels
and access to competitively priced capital."
Inger M. Klemp, Chief Financial Officer of Frontline Management AS, added:
"With asset values, rates and Frontline's cash break-even rates at historically
low levels our downside risk is limited. We are in a unique position to
capitalize on increases in both asset values and rates and we have a strong
liquidity position in excess of $300 million as at the end of December 2017."
The average daily time charter equivalents ("TCE") earned by Frontline in the
quarter ended December 31, 2017, the prior quarter and in the year ended
December 31, 2017 are shown below, along with estimates for the first quarter of
2018 and the estimated average daily cash break-even ("BE") rates for the
remainder of 2018:
Average daily time charter equivalents ("TCEs")
--------------------------------------------------------------------------------
Estimated
($ average
per Spot % daily BE
day) Spot and time charter Spot estimates covered rates
+-----+-----------------------+--------------------+-----------------+---------+
| | YTD | Q4 Q3 YTD | | |
| |Q4 2017 Q3 2017 2017 | 2017 2017 2017 | Q1 2018 | 2018 |
+-----+-----------------------+--------------------+-----------------+---------+
|VLCC |19,400 13,200 22,800 |19,400 13,200 22,400| 17,000 68% | 22,200 |
| | | | | |
|SMAX |19,600 15,300 18,500 |19,500 14,100 17,300| 15,600 66% | 18,200 |
| | | | | |
|LR2 |18,400 17,200 18,800 |14,400 12,300 14,400| 15,300 73% | 16,000 |
+-----+-----------------------+--------------------+-----------------+---------+
The full report can be found in the link below.
Questions should be directed to:
Robert Hvide Macleod: Chief Executive Officer, Frontline Management AS
Frontline Ltd. (the "Company" or "Frontline"), today reported unaudited results
for the three months and year ended December 31, 2017:
Highlights
* Reports net loss attributable to the Company of $248.4 million, or $1.46 per
share, for the fourth quarter of 2017, including non-cash impairment losses
of $255.8 million
* Reports net income attributable to the Company adjusted for certain non-cash
items of $5.0 million, or $0.03 per share, for the fourth quarter of 2017.
* Reports net loss attributable to the Company of $264.9 million, or $1.56 per
share, and a net loss adjusted for certain non-cash items of $4.4 million,
or $0.03 per share, for the year ended December 31, 2017.
* Agreed with Ship Finance to terminate the long-term charter for the 1998-
built VLCC Front Circassia.
* Extended the terms of its senior unsecured loan facility of up to $275.0
million facility with an affiliate of Hemen Holding Ltd. by 12 months to
November 2019.
Robert Hvide Macleod, Chief Executive Officer of Frontline Management AS
commented:
"The spot rates in the fourth quarter were weak, as inventory draws impacted a
freight market that was already suffering from high fleet growth. At the same
time, the key drivers for the tanker market, crude oil demand and the world
economy remain strong, and we may also be nearing the end of the cycle of
inventory draws. The headwind factors experienced in 2017 could turn in our
favour possibly towards the end of the year. The quarter shows Frontline's
resilience in weak markets, which is the direct result of low break-even levels
and access to competitively priced capital."
Inger M. Klemp, Chief Financial Officer of Frontline Management AS, added:
"With asset values, rates and Frontline's cash break-even rates at historically
low levels our downside risk is limited. We are in a unique position to
capitalize on increases in both asset values and rates and we have a strong
liquidity position in excess of $300 million as at the end of December 2017."
The average daily time charter equivalents ("TCE") earned by Frontline in the
quarter ended December 31, 2017, the prior quarter and in the year ended
December 31, 2017 are shown below, along with estimates for the first quarter of
2018 and the estimated average daily cash break-even ("BE") rates for the
remainder of 2018:
Average daily time charter equivalents ("TCEs")
--------------------------------------------------------------------------------
Estimated
($ average
per Spot % daily BE
day) Spot and time charter Spot estimates covered rates
+-----+-----------------------+--------------------+-----------------+---------+
| | YTD | Q4 Q3 YTD | | |
| |Q4 2017 Q3 2017 2017 | 2017 2017 2017 | Q1 2018 | 2018 |
+-----+-----------------------+--------------------+-----------------+---------+
|VLCC |19,400 13,200 22,800 |19,400 13,200 22,400| 17,000 68% | 22,200 |
| | | | | |
|SMAX |19,600 15,300 18,500 |19,500 14,100 17,300| 15,600 66% | 18,200 |
| | | | | |
|LR2 |18,400 17,200 18,800 |14,400 12,300 14,400| 15,300 73% | 16,000 |
+-----+-----------------------+--------------------+-----------------+---------+
The full report can be found in the link below.
Questions should be directed to:
Robert Hvide Macleod: Chief Executive Officer, Frontline Management AS