Frontline reported unaudited results for the three and nine months ended September 30, 2024:
Highlights
- Profit of $60.5 million, or $0.27 per share for the third quarter of 2024.
- Adjusted profit of $75.4 million, or $0.34 per share for the third quarter of 2024.
- Declared a cash dividend of $0.34 per share for the third quarter of 2024.
- Reported revenues of $490.3 million for the third quarter of 2024.
- Achieved average daily spot time charter equivalent earnings (“TCEs”)1 for VLCCs, Suezmax tankers and LR2/Aframax tankers in the third quarter of $39,600, $39,900 and $36,000 per day, respectively.
- Sold its oldest Suezmax tanker, built in 2010, for a net sales price of $48.5 million and delivered the vessel to its new owner in October 2024. The transaction generated net cash proceeds of $36.5 million after repayment of existing debt.
- Fully repaid the shareholder loan with Hemen Holding Limited, the Company’s largest shareholder (“Hemen”) and the $275.0 million senior unsecured revolving credit facility with an affiliate of Hemen for an aggregate amount of $470.0 million in the second, third and fourth quarters of 2024.
- Entered into a sale-and-leaseback agreement in an amount of up to $512.1 million to refinance 10 Suezmax tankers. The refinancing is expected to generate net cash proceeds of approximately $101.0 million in the fourth quarter of 2024.
Lars H. Barstad, Chief Executive Officer of Frontline Management AS, commented:
“The third quarter of 2024 performed in line with seasonal expectations, as oil demand slowed over the summer months and domestic demand by oil exporting countries in the Middle East increased. We continue to sail in a troubled geopolitical landscape and with lower year-on-year demand in Asia, and especially China, the tanker markets have yet to experience the seasonal upswing into winter. The increase in sanctioned oil trade and movement of illicit barrels have negatively impacted our trade environment. However, global oil demand is still growing, and with limited new tanker capacity coming, Frontline continues to profit as we run our cost-efficient operation and modern fleet. It will be interesting to see how the tanker market, including the trade of oil and energy, is impacted by politics as we approach 2025.”
Inger M. Klemp, Chief Financial Officer of Frontline Management AS, added:
“In 2024 we have optimized the capital structure of the Company by refinancing debt of 36 vessels, which has extended maturities and improved margins, divesting eight older vessels and the subsequent repayment of the Hemen shareholder loan and the $275.0 million senior unsecured revolving credit facility with an affiliate of Hemen in an aggregate amount of $470.0 million. We continue to focus on maintaining our competitive cost structure, breakeven levels and solid balance sheet to ensure that we are well positioned to generate significant cash flow and create value for our shareholders.”