FRNT - Second quarter and six months 2014 results

Highlights

• Frontline 2012 reports net income of $136.6 million and earnings per share of $0.55 for the second quarter of 2014.
• Frontline 2012 reports net income of $151.1 million and earnings per share of $0.61 for the six months ended June 30, 2014.

The Company announces a cash dividend of $0.05 per share for the second quarter.

Frontline 2012 received $99.3 million in April 2014 in connection with the cancellation of its first newbuilding contract at Jinhaiwan and recorded a gain of $35.9 million.

In April 2014, the Company completed the previously announced sale of five Capesize newbuilding contracts to KTL and recorded a net gain of $74.8 million.

In April 2014, the Company sold 2,854,985 of its shares in AGHL and recorded a net gain of $16.9 million.

The Company has cancelled the first two MR product tanker newbuilding contracts at STX Dalian.

  
Second Quarter and Six Months 2014 Results  

Frontline 2012 announces net income of $136.6 million and earnings per share of $0.55 for the second quarter of 2014 compared with net income of $14.5 million and earnings per share of $0.06 in the preceding quarter. Net income in the second quarter includes a gain on newbuilding contracts and sale of assets of $127.6 million comprising a gain of $35.9 million in connection with the cancellation of the first newbuilding contract (J0025) at Jinhaiwan, a gain of $16.9 million on the sale of shares in Avance Gas Holdings Limited ("AGHL") and a gain of $74.8 million on the sale of five newbuilding contracts to Knightsbridge Tankers Limited ("KTL").

The average daily time charter equivalents ("TCEs") earned in the spot and period market in the second quarter by the Company's VLCCs and Suezmax tankers were $24,000 and $14,400, respectively, compared with $39,500 and $26,500, respectively, in the preceding quarter. The spot earnings for the Company's VLCC and Suezmax tankers were $22,300 and $14,400, respectively, compared with $40,600 and $26,500, respectively, in the preceding quarter. The daily earnings for the Company's MR product tankers were $15,800 compared with $17,900 in the preceding quarter.

Frontline 2012 announces net income of $151.1 million and earnings per share of $0.61 for the six months ended June 30, 2014 compared with net income of $33.1 million and earnings per share of $0.16 in the six months ended June 30, 2013. Net income in the six months ended June 30, 2014 includes a gain on newbuilding contracts and sale of assets of $127.6 million while the net income in the six months ended June 30, 2013 included a gain of $30.3 million in connection with the cancellation of the second newbuilding contract (J0026) at Jinhaiwan.