FRONTLINE LTD. REPORTS RESULTS FOR THE FIRST QUARTER 2016
May 31 2016 - 2:48AM
Frontline Ltd. (the "Company" or "Frontline"),
today reported unaudited results for the three months ended March
31, 2016:
Highlights
-
Achieved net income attributable to the Company
of $78.9 million, or $0.50 per share, for the first quarter of
2016.
-
Announces a cash dividend of $0.40 per share for
the first quarter of 2016.
-
Obtained commitments for up to $603.4 million of
new financing in May 2016 comprising of $328.4 million in bank
financing for eight newbuilding contracts and a senior unsecured
facility of up to 275.0 million from a company affiliated with our
largest shareholder, Hemen Holding Ltd.
-
Took delivery of four LR2 tanker newbuildings in
the first quarter and one LR2 tanker newbuilding in May 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 $78.9 million or
$0.50 per share. Significantly, this was Frontline's first full
quarter following its merger with Frontline 2012 Ltd. Our
performance, particularly in the VLCC segment was strong, despite
some market weakness in February and March.
The average daily time charter equivalents ("TCE")
earned by Frontline in the first quarter were strong across all
segment classes, as shown below:
|
|
Average daily time charter equivalents
("TCEs") |
|
|
($ per day) |
Spot and time charter |
Spot |
Spot Guidance |
% covered |
|
Estimated average daily BE rates |
|
Q1 2016 |
Q4 2015 |
Q1 2016 |
Q4 2015 |
Q2 2016 |
|
2016 |
VLCC |
65 400 |
57 700 |
70 200 |
62 700 |
52 000 |
83 % |
|
22 500 |
SMAX |
32 000 |
38 400 |
33 400 |
42 000 |
27 000 |
90 % |
|
17 900 |
LR2 |
24 700 |
25 500 |
24 800 |
37 600 |
24 000 |
77 % |
|
15 300 |
MR |
19 800 |
19 300 |
20 300 |
19 700 |
16 200 |
82 % |
|
14 000 |
We are also encouraged that our newbuilding
program is proceeding according to schedule. Five LR2 tankers from
our newbuilding fleet have been delivered thus far in 2016.
An additional six newbuilding deliveries are expected in 2016, and
the final 17 newbuilding vessels are expected to be delivered in
2017. Notably, our newbuilding program includes nine LR2
tankers, excluding the five that were already delivered in
2016. These vessels have the capability to transport both
crude and refined products, and while our primary focus has always
been on the transportation of crude oil, our increasingly
diversified fleet also provides us leverage to create value in
refined product trades and helps to maximize our chartering
strategy."
Inger M. Klemp, Chief Financial
Officer of Frontline Management AS, added:
"We are very pleased to have
secured a commitment for up to $275 million in additional debt
financing from a company affiliated with Hemen Holding Ltd. The
loan will be used to part finance the Company's current newbuilding
program and potential acquisitions. In addition, we have received a
commitment for up to $328 million from China Exim Bank to finance
eight newbuilding contracts, as well as a term sheet for up to $325
million to finance further eight newbuilding contracts. Based on
cash on hand, committed and assumed debt financing we are confident
that the current newbuilding program will be fully funded, as well
as leaving flexibility for further growth."
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 of the disclosure requirements acc. to §5-12
vphl (Norwegian Securities Trading Act)
1st Quarter 2016 Results
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Frontline Ltd. via Globenewswire
HUG#2016648
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