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Frontline Ltd. (“Company” or “Frontline”) today reported unaudited performance for the three and nine months ended September 30, 2021:
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- The net loss for the third quarter of 2021 was US$33.2 million, which is a basic and diluted loss per share of US$0.17.
- The adjusted net loss for the third quarter of 2021 was US$35.9 million, which is a basic and diluted loss per share of US$0.18.
- The reported total operating income for the third quarter of 2021 was $171.8 million.
- In the third quarter of 2021, VLCC, Suez tankers and LR2 tankers reported spot TCEs of US$10,500, US$7,900 and US$10,700 per day, respectively.
- For the fourth quarter of 2021, we estimate that 79% of VLCC vessel days are US$21,600, 72% of Suezmax tankers have vessel days of US$17,900, and 64% of vessel days are US$16,000 for LR2 tankers.
- In September 2021 and October 2021, a senior secured term loan facility of up to US$247 million was signed to partially fund the acquisition of two VLCCs built in 2019, which will be delivered to the company in October and November 2021, and Acquired two of six newbuilding contracts for resale of VLCC.
- In October 2021 and November 2021, it obtained financing commitments for senior secured term loan financing with a total amount of up to 260 million U.S. dollars to partially fund the acquisition of 4 of the 6 VLCC newbuilding contracts. These contracts are subject to the final documents.
- In November 2021, it reached an agreement to sell four LR2 tankers with scrubbers built in 2014 and 2015 for a total price of US$160 million. The transaction is expected to generate approximately US$67 million in net cash income.
- In November 2021, the company extended its senior unsecured revolving credit line of up to US$275 million with its affiliates of Hemen Holding Ltd. for 12 months to May 2023.
Lars H. Barstad, CEO of Frontline Management AS, commented:
“For tanker owners, the third quarter is still a challenging period. Global oil demand is rising, but oil supply growth is still weak, resulting in one of the strongest quarters for tankers on record. Global inventories were in place throughout the period. Decline, although the pace has slowed compared to the previous quarter. However, Frontline has once again benefited from operating a “tight ship”. We believe that the industry’s operating, financial and management costs are lower. In the current market, oil prices and fuels Costs have risen sharply, and we believe that having a modern, fuel-efficient fleet has proven to be beneficial. In the last quarter, I pointed out that freight rates below operating costs are in some cases detrimental to inefficient tonnage and are unsustainable. . In the third quarter of this year, we finally began to see the acceleration of ship recycling. The fundamentals of this market have not changed. The global tanker fleet is rapidly aging. Ord As the global oil demand is about to exceed hundreds of millions of barrels per day, erbooks are decreasing. The combination of these factors creates a potentially effective cocktail for the recovery of the tanker market.”
Inger M. Klemp, Chief Financial Officer of Frontline Management AS added:
“In the third and fourth quarters, we have reached a term loan arrangement and obtained financing commitments on terms that we consider attractive, totaling US$507 million to partially fund the acquisition of two VLCCs built in 2019 and 6 VLCCs. VLCC newbuilding contract. Taking into account the US$33.4 million under the term loan arrangement signed in November 2020 to partially fund the delivery of the last LR2 tanker, we have established a bank debt of up to US$540.4 million. The company has also raised The total amount received US$51.2 million in proceeds under the equity distribution agreement, and net cash proceeds after the repayment of approximately US$67 million in bank debt through the sale of four LR2 tankers. Thereafter, as of September 30, 2021, the remaining commitments of Frontline’s new shipbuilding plan Including one LR2 tanker and six VLCCs, as well as two VLCCs built in 2019, the acquisition is fully funded.
Through these new financings, we have reduced borrowing costs and industry-leading cash balance ratios, provided significant operating leverage and substantial returns during periods of market strength, and helped protect our cash flow during periods of market weakness.
The company also extended the term of its senior unsecured revolving credit facility of up to US$275 million by 12 months, until May 2023, and Frontline’s loan term will reach 2023. “
Average daily time charter equivalent (“TCE”)1
| ($ per day) |
The full story can be found on Benzinga.com
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