GlobeNewswire

FRO - First Quarter 2021 Results

Share

Frontline Ltd. (the “Company” or “Frontline”), today reported unaudited results for the three months ended March 31, 2021:

Highlights

  • Net income of $28.9 million, or $0.15 per diluted share for the first quarter of 2021.
  • Adjusted net income of $8.8 million, or $0.04 per diluted share for the first quarter of 2021.
  • Reported total operating revenues of $194.0 million for the first quarter of 2021.
  • Reported spot TCEs for VLCCs, Suezmax and LR2 tankers in the first quarter of 2021 were $19,000, $15,200 and $12,000 per day, respectively.
  • For the second quarter of 2021, we estimate spot TCE on a load-to-discharge basis of $18,100 contracted for 70% of vessel days for VLCCs, $13,600 contracted for 63% of vessel days for Suezmax tankers and $14,200 contracted for 59% of vessel days for LR2 tankers. We expect the spot TCEs for the full second quarter of 2021 to be lower than the TCEs currently contracted, due to the impact of ballast days at the end of the second quarter as well as current freight rates.
  • In March and April 2021, respectively, the Company took delivery of the LR2 newbuildings Front Fusion and Front Future.
  • In May 2021, the Company entered into an agreement for the acquisition through resale of six latest generation ECO-type VLCC newbuilding contracts currently under construction at the HHI shipyard in South Korea. Five vessels will be delivered during 2022 starting in Q1 and the last vessel in Q1 2023.

Lars H. Barstad, Interim Chief Executive Officer of Frontline Management AS commented:

“Despite challenging market conditions during the first quarter of 2021, Frontline manages to deliver a solid result. This reflects our business model, with high focus on efficiency, quality, and cost throughout the organization. Frontline’s modern fleet allows for an agile approach to how we trade our ships, yielding returns above the key benchmarks. We are not out of the woods yet with regards to freight demand, and the recent Covid-19 situation in Asia is a concern. We are seeing promising oil demand figures from Europe, US, and China and OPEC, EIA, and IEA maintain their very firm demand growth expectations for the second half of 2021, but short-term the freight market continues to be challenged. We are very excited about our acquisition of six VLCCs being built at Hyundai Heavy Industries in Korea. These high-quality vessels will be delivered at a time when oil demand is expected to have normalized and the Global economy is running on full steam. The fundamentals of the tanker market remain firm, with an historic low order book and a significant part of the fleet challenged by tightening environmental regulations.”

Average daily time charter equivalents ("TCEs")1

($ per day)Spot TCESpot TCE estimates% coveredEstimated average daily cash BE rates for the remainder of the year
Q1 2021 Q4 2020 2020 Q2 2021 2021
VLCC 19,000 17,200 54,500 18,100 70% 21,500
SMAX 15,200 9,800 35,600 13,600 63% 17,700
LR2 12,000 12,500 23,400 14,200 59% 15,900

The estimated average daily cash breakeven rates are the daily TCE rates the vessels must earn in order to cover operating expenses including dry docks, repayments of loans, interest on loans, bareboat hire, time charter hire and net general and administrative expenses for the remainder of the year.

Spot estimates are provided on a load-to-discharge basis, whereby the Company recognizes revenues over time ratably from commencement of cargo loading until completion of discharge of cargo. The rates reported are for all days up until the last contracted discharge of cargo for each vessel in the quarter. The actual rates to be earned in the second quarter of 2021 will depend on the number of additional days that we can contract, and more importantly the number of additional days that each vessel is laden. Therefore, a high number of ballast days at the end of the quarter will limit the amount of additional revenues to be booked on a load-to-discharge basis. Ballast days are days when a vessel is sailing without cargo and therefore, we are unable to recognize revenues. Furthermore, when a vessel remains uncontracted at the end of the quarter, the Company will recognize certain costs during the uncontracted days up until the end of the period, whereas if a vessel is contracted, then certain costs can be deferred and recognized over the load-to-discharge period.

The recognition of revenues on a load-to-discharge basis results in revenues being recognized over fewer days, but at a higher rate for those days. Over the life of a voyage there is no difference in the total revenues and costs to be recognized as compared to a discharge-to-discharge basis.

When expressing TCE per day the Company uses the total available days, net of off hire and not just the number of days the vessel is laden.

The Board of Directors
Frontline Ltd.
Hamilton, Bermuda
May 26, 2021

Ola Lorentzon - Chairman and Director
John Fredriksen - Director
Tor Svelland - Director   
James O'Shaughnessy - Director

Questions should be directed to:

Lars H. Barstad: Interim Chief Executive Officer, Frontline Management AS
+47 23 11 40 37

Inger M. Klemp: Chief Financial Officer, Frontline Management AS
+47 23 11 40 76

Forward-Looking Statements

Matters discussed in this report may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements, which 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.

Frontline Ltd. and its subsidiaries, or the Company, desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. This report and any other written or oral statements made by us or on our behalf may include forward-looking statements, which reflect our current views with respect to future events and financial performance and are not intended to give any assurance as to future results. When used in this document, the words "believe," "anticipate," "intend," "estimate," "forecast," "project," "plan," "potential," "will," "may," "should," "expect" and similar expressions, terms or phrases may identify forward-looking statements.

The forward-looking statements in this report are based upon various assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and data available from third parties. Although we believe 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 our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

In addition to these important factors and matters discussed elsewhere herein, important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies, fluctuations in currencies and interest rates, general market conditions, including fluctuations in charter hire rates and vessel values, changes in the supply and demand for vessels comparable to ours, changes in world wide oil production and consumption and storage, changes in the Company's operating expenses, including bunker prices, dry docking and insurance costs, the market for the Company's vessels, availability of financing and refinancing, our ability to obtain financing and comply with the restrictions and other covenants in our financing arrangements, availability of skilled workers and the related labor costs, compliance with governmental, tax, environmental and safety regulation, any non-compliance with the U.S. Foreign Corrupt Practices Act of 1977 (FCPA) or other applicable regulations relating to bribery, general economic conditions and conditions in the oil industry, effects of new products and new technology in our industry, the failure of counter parties to fully perform their contracts with us, our dependence on key personnel, adequacy of insurance coverage, our ability to obtain indemnities from customers, changes in laws, treaties or regulations, the volatility of the price of our ordinary shares; our incorporation under the laws of Bermuda and the different rights to relief that may be available compared to other countries, including the United States, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents, political events or acts by terrorists, and other important factors described from time to time in the reports filed by the Company with the Securities and Exchange Commission or Commission.

We caution readers of this report not to place undue reliance on these forward-looking statements, which speak only as of their dates. These forward-looking statements are no guarantee of our future performance, and actual results and future developments may vary materially from those projected in the forward-looking statements.

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act





1 This press release describes Time Charter Equivalent earnings and related per day amounts, which are not measures prepared in accordance with US GAAP (“non-GAAP”). See Appendix 1 for a full description of the measures and reconciliation to the nearest GAAP measure.



Attachment

To view this piece of content from www.globenewswire.com, please give your consent at the top of this page.
To view this piece of content from ml-eu.globenewswire.com, please give your consent at the top of this page.

About GlobeNewswire

GlobeNewswire
GlobeNewswire
One Liberty Plaza - 165 Broadway
NY 10006 New York

https://globenewswire.com

GlobeNewswire is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.

Subscribe to releases from GlobeNewswire

Subscribe to all the latest releases from GlobeNewswire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from GlobeNewswire

Leading Edge Materials Announces Preliminary Life Cycle Assessment Results on Woxna Graphite Project21.6.2021 15:00:00 CEST | Press release

Vancouver, June 21, 2021 – Leading Edge Materials Corp. (“Leading Edge Materials” or the “Company”) (TSXV: LEM) (Nasdaq First North: LEMSE) (OTCQB: LEMIF) is pleased to announce preliminary Live Cycle Assessment (“LCA”) results for its Woxna Graphite anode project. On December 10, 2020, the Company announced it had commissioned Minviro Ltd. (“Minviro”), a London based globally recognized LCA consultancy, to build an LCA model and deliver a report for the planned vertically integrated production of natural graphite anode material in Sweden as described in the Company’s recently announced Preliminary Economic Assessment (“PEA”) results. The LCA results show that the production of 1 tonne of natural graphite anode material (coated spherical purified graphite (“CSPG”)) from natural graphite extracted at the Woxna Graphite mine is forecast to have an impact of 1.8 tonnes CO2 eq. Minviro applied the same methodology in the report to evaluate current Chinese natural and synthetic graphite ano

Nokia and DISH to deploy first 5G standalone core network in the public cloud with AWS21.6.2021 15:00:00 CEST | Press release

Press Release Nokia and DISH to deploy first 5G standalone core network in the public cloud with AWS Nokia builds on relationship with DISH and AWS as DISH deploys the United States’ first standalone, 5G cloud network on public cloud 21 June 2021 Dallas, Texas – Nokia today said it will deploy its 5G standalone (SA) Core for DISH on Amazon Web Services, Inc. (AWS). While DISH previously announced agreements with both companies, this news marks the world’s first deployment of 5G in the public cloud, supporting DISH’s cloud-native, OpenRAN-based 5G network with high-level scale, performance and security. Nokia is deploying 5G SA Core on AWS to enable automation required to meet evolving customer needs, allowing DISH to support new enterprise and consumer 5G use cases quickly, securely and across multiple cloud stacks at end customer premises. Nokia 5G SA Core on AWS allows DISH to offer the responsiveness, flexibility and efficiency that is needed to create innovative new services for it

Wood Mackenzie Scales Data Analytics Across the Energy Transition by Adding Quinbrook as a Lens Power Development Partner21.6.2021 13:00:00 CEST | Press release

Lens® decision intelligence platform connects the dots across a rapidly changing energy landscape LONDON/HOUSTON/SINGAPORE, June 21, 2021 (GLOBE NEWSWIRE) -- Wood Mackenzie, the leading provider of commercial intelligence for the world’s natural resources sector, today welcomes Quinbrook Infrastructure Partners as a development partner for the industry-leading Lens decision intelligence platform. With its analytics-ready power and renewables data integrated into a single platform, Lens Power enables organisations to maximise investment opportunities in clean energy and be on the forefront of the energy transition. Wood Mackenzie, a Verisk business (Nasdaq:VRSK), is collaborating with early adopters to design a power solution that provides a holistic understanding of what is happening in the world of energy, allowing organisations to analyse, screen and value assets or companies quickly and confidently to improve profitability and minimise risk. Global Power Generation Assets byEnergy S

Rovio Entertainment, Moomin Characters and Gutsy Animations enter into a long-term partnership21.6.2021 12:30:00 CEST | Press release

Rovio Entertainment Corporation Press Release Rovio Entertainment, Moomin Characters and Gutsy Animations enter into a long-term partnership Iconic Finnish brands will join forces to create joyful content for years to come. Rovio becomes an exclusive partner for Moomin based mobile games. ESPOO - Finland, June 21, 2021- Rovio Entertainment Corporation, the creator of Angry Birds, has entered into a long-term partnership with Moomin Characters and Gutsy Animation. Rovio will have the rights to develop and publish Moomin IP based games for any platform, with exclusive rights for all mobile platforms. Rovio will also become a minority shareholder in Gutsy Animations, the creator of the Moominvalley 3D animation series through an equity investment of 2.5 million euros and a convertible loan of 2.5 million euros. Moomin has a very high brand awareness particularly in Japan, which is one of the biggest gaming markets in the world. The length of the partnership is six years, with a possible e

Incap Corporation: INCAP’S FACTORIES IN INDIA CONTINUE OPERATIONS WITH REDUCED CAPACITY. INCAP’S PREVIOUSLY ANNOUNCED OUTLOOK FOR 2021 REMAINS UNCHANGED.21.6.2021 11:30:00 CEST | Press release

Incap Corporation 21 June 2021 at 12:30 p.m. (EEST) Stock Exchange Release Insider information INCAP’SFACTORIES IN INDIACONTINUE OPERATIONS WITH REDUCED CAPACITY. INCAP’S PREVIOUSLY ANNOUNCED OUTLOOK FOR 2021 REMAINS UNCHANGED. Karnataka state continues the fight against the coronavirus pandemic extending the measures taken to limit for instance social gatherings. The lock-down in Karnataka has been extended until 5 July 2021. However, the state government has given a number of concessions indicating a phased opening up in the coming weeks. Incap’s permission to operate its factories is still in force and the company continues to operate with somewhat reduced capacity following the government guidelines. The closure and the partial operations of the factories in India do not have an impact on the company’s outlook for 2021 published on 21 April 2021. Incap’s previously announced outlook for 2021: Incap estimates that its revenue, operating profit (EBIT) and adjusted operating profit (E

Progress on Brunel share buyback program 202121.6.2021 11:00:00 CEST | Press release

Amsterdam, 21 June 2021 – Brunel International N.V. (Brunel; BRNL), reports the transaction details for the period 14 June 2021 through 18 June 2021 related to its share buyback program announced on 1 June 2021 for an amount up to EUR 1,977,000, and started on 3 June 2021 in order to meet obligations under its performance share plan for senior management (excluding Board of Directors). Detailed information including all individual transactions can be found on https://www.brunelinternational.net/en/share-buyback-program. DateTotal shares repurchasedAverage purchase priceTotal consideration 14/06/2021 8,286 € 11.6138 € 96,231.95 15/06/2021 14,103 € 11.5806 € 163,321.20 16/06/2021 14,861 € 11.5029 € 170,944.60 17/06/2021 10,184 € 11.3922 € 116,018.16 18/06/2021 12,935 € 11.2274 € 145,226.42 Total60,369€ 11.4586€ 691,742.33 This press release contains inside information as meant in clause 7 of the Market Abuse Regulation. Attachment Press Release Share Buyback 2021 progress

Scientific Beta releases new inflation-friendly indices21.6.2021 10:36:33 CEST | Press release

Press Release - Boston, London, Nice, Paris, Singapore, Tokyo, June 21, 2021 Scientific Beta releases new inflation-friendly indices Equity inflation indices are Scientific Beta’s first suite of macroeconomic factor indices Scientific Beta has announced the release of inflation-friendly indices, the Scientific Beta US Inflation indices, its first suite of macroeconomic factor indices. The inflation indices provide long-term equity performance with additional inflation protection compared to a traditional cap-weighted equity index. These indices correspond to a genuinely important subject for institutional investment, because in the event of inflation they procure a higher asset value (surplus) that could offset the impact of inflation on the revenue needs of future pensioners. This capacity to produce strong conditional performance does not result in a high level of tracking error with respect to the cap-weighted benchmark, like with many indices, and ultimately in poor unconditional p