FRO - Fourth Quarter and Full Year 2015 Results
February 29 2016 - 02:43AM
Frontline Ltd. (the "Company" or "Frontline"), today reported
unaudited results for the year ended December 31, 2015:
Highlights
- Frontline achieved net income attributable to the Company of
$58.6 million for the fourth quarter of 2015 and net income
attributable to the Company of $154.6 million for the year ended
December 31, 2015.
- The Company announces a cash dividend of $0.35 per share for
the fourth quarter of 2015.
- On November 30, 2015, Frontline completed the previously
announced merger with Frontline 2012 Ltd. ("Frontline 2012").
- The Company paid a dividend of $0.25 per share in December 2015
(adjusted for a 1-for-5 reverse stock split that was approved in
January 2016).
- The Company signed a new $500 million term loan facility in
December 2015, reducing the average daily cash cost breakeven TCE
rates per operating vessel by approximately $1,400 per day for
2016.
Robert Hvide Macleod, Chief Executive Officer of
Frontline Management AS commented:
"We are very pleased to report yet another
strong quarter with net income attributable to the
Company of $58.6 million. In the fourth quarter, we completed
our merger with Frontline 2012. This was a transformational
event for Frontline as we emerged as a much stronger company with a
large, diversified fleet of crude oil and refined product
tankers. We believe that due to Frontline's brand, financial
flexibility, and scale, it holds a unique position among its
peers.
The average daily time charter equivalents
("TCE") earned by both Frontline and Frontline 2012 in the fourth
quarter were strong across all segment classes, as shown below:
($ per
day) |
Spot and time charter |
Spot |
Spot
guidance |
%
covered |
Estimated average daily BE rates |
|
Q4 2015 |
Q3 2015 |
Q4 2015 |
Q3 2015 |
Q1 2016 |
2016 |
VLCC |
57
700 |
44 300 |
62
700 |
49 600 |
73
100 |
88 % |
22
500 |
SMAX |
38
400 |
28 400 |
42
000 |
30 600 |
36
700 |
62 % |
17
600 |
LR2 |
25
500 |
27 000 |
37
600 |
42 700 |
26
500 |
72 % |
15
000 |
MR |
19 300 |
25 700 |
19 700 |
25 700 |
21 000 |
63 % |
13 900 |
These TCE rates are indicative since they do not
conform with the figures in the Company's US GAAP financial
statements. The US GAAP figures are based on the results of
Frontline 2012 for October and November and those of the merged
company for the month of December.
We are off to a very good start thus far in
2016, buoyed by continued strength in the tanker market, and we are
pleased with the earnings we have secured thus far in Q1. The
market has corrected downwards over the recent weeks, but overall
demand for tankers remains high. Our highly competitive cash
breakeven rates enable us to achieve higher cash flow generation
per day, and makes Frontline robust during downturns in the market,
thus enhancing returns to our shareholders."
The full report can be found in the link
below.
Questions should be directed to:
Robert Hvide Macleod: Chief Executive Officer,
Frontline Management AS
+47 23 11 40 84
Inger M. Klemp: Chief Financial Officer,
Frontline Management AS
+47 23 11 40 76
Forward-Looking Statements
Matters discussed in this press release may
constitute forward-looking statements. Forward-looking statements
include statements concerning plans, objectives, goals, strategies,
future events or performance, and underlying assumptions and other
statements, which are other than statements of historical facts.
Words, such as, but not limited to "believe," "anticipate,"
"intends," "estimate," "forecast," "project," "plan," "potential,"
"may," "should," "expect," "pending" and similar expressions
identify forward-looking statements. The forward-looking statements
in this press release are based upon various assumptions, many of
which are based, in turn, upon further assumptions. Although
Frontline believes that these assumptions were reasonable when
made, because these assumptions are inherently subject to
significant uncertainties and contingencies which are difficult or
impossible to predict and are beyond the control of Frontline,
Frontline cannot assure you that they will achieve or accomplish
these expectations, beliefs or projections. The information set
forth herein speaks only as of the date hereof, and Frontline
disclaims any intention or obligation to update any forward-looking
statements as a result of developments occurring after the date of
this communication.
This information is subject to the disclosure requirements
pursuant to section 5-12 of the Norwegian Securities Trading
Act.
4th Quarter 2015 Results
http://hugin.info/182/R/1990024/730999.pdf
HUG#1990024
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