FRO - Fourth Quarter and Full Year 2019 Results



Frontline Ltd. (the “Company” or “Frontline”), today reported unaudited results for the three months and year ended December 31, 2019:

Highlights

• Highest quarterly net income in more than eleven years of $108.8 million, or $0.55 per diluted share for the fourth quarter of 2019, excluding $8.7 million of net cash receipts and accrued profit share in relation to the five charter-in and charter-out agreements with Trafigura that have been treated as a reduction of the acquisition cost of the vessels.  
• Net income adjusted for certain non-cash items of $106.9 million, or $0.54 per diluted share for the fourth quarter of 2019, excluding the net impact of the item above.
• Declared a cash dividend of $0.40 per share for the fourth quarter of 2019.
• Reported spot TCEs for VLCCs, Suezmax tankers and LR2 tankers in the fourth quarter of 2019 were $58,000, $38,200 and $29,800, respectively.
• For the first quarter of 2020, we estimate spot TCE on a load-to discharge basis of $90,300 contracted for 83% of vessel days for VLCCs, $71,900 contracted for 75% of vessel days for Suezmax tankers and $36,300 contracted for 72% of vessel days for LR2s. We expect the spot TCEs for the full first quarter of 2020 to be lower than the TCEs currently contracted, due to the impact of ballast days at the end of the quarter, as well as current tanker market weakness.
• The Company is in the final process of signing the sale-and-leaseback agreement in an amount of up to $544.0 million with ICBC Financial Leasing Co., Ltd (“ICBCL”) to finance the cash amount payable upon closing of the acquisition (as defined below), expected to take place on March 16, 2020.
• In November 2019, the Company signed a senior secured term loan facility in an amount of up to $42.9 million with Credit Suisse to part finance the Suezmax tanker resale under construction at HSHI.
• In February 2020, the Company obtained a financing commitment for a senior secured term loan facility in an amount of up to $62.5 million from Crédit Agricole to part finance the VLCC resale under construction at HSHI.

Robert Hvide Macleod, Chief Executive Officer of Frontline Management AS commented: