Highlights
- Profit of
$107.7 million , or$0.48 per basic and diluted share for the third quarter of 2023. - Adjusted profit of
$80.8 million , or$0.36 per basic and diluted share for the third quarter of 2023. - Declared a cash dividend of
$0.30 per share for the third quarter of 2023. - Reported revenues of
$377.1 million for the third quarter of 2023. - Announced agreement for an integrated solution to the strategic and structural deadlock in Euronav NV (“Euronav”).
- Closed the sale of 13.7 million shares of Euronav to
CMB NV for proceeds of$252.0 million . - Entered into agreements with Euronav to purchase 24 VLCCs with an average age of 5.3 years, for an aggregate purchase price of
$2,350.0 million from Euronav (the “Acquisition”). All agreements are effective, and a majority of the vessels are expected to be delivered in the fourth quarter of 2023 and the balance of the vessels are expected to be delivered in the first quarter of 2024. - Entered into a senior secured term loan facility with a group of our relationship banks in
November 2023 in an amount of up to$1,410.0 million and a shareholder loan fromHemen Holding Ltd. , the Company’s largest shareholder (“Hemen”), in an amount up to$539.9 million to partly finance the Acquisition.
“The third quarter of the year proved to be a shoulder quarter for Frontline. As the Russian benchmark crude price firmly established itself above the price cap, owners left the trade causing the capacity in the non-
"We are very grateful for the financial support from a group of our relationship banks and our largest shareholder, allowing us to react quickly to growth opportunities which made the acquisition of the 24 modern VLCCs from Euronav possible. We will continue to consistently focus on maintaining our competitive breakeven levels to ensure that we are well positioned to generate significant cash flow and create value for our shareholders.”
Average daily time charter equivalents ("TCEs")1
($ per day) | Spot TCE | Spot TCE estimates | % Covered | Estimated average daily cash breakeven rates | ||||
2023 | Q3 2023 | Q2 2023 | Q4 2022 | 2022 | Q4 2023 | 2023 | ||
VLCC | 52,900 | 42,500 | 64,000 | 63,200 | 31,300 | 48,100 | 81% | 28,200 |
Suezmax | 54,600 | 37,600 | 61,700 | 57,900 | 37,100 | 50,300 | 70% | 25,700 |
LR2 / Aframax | 48,000 | 33,900 | 52,900 | 58,800 | 38,500 | 51,300 | 70% | 17,100 |
We expect the spot TCEs for the full fourth quarter of 2023 to be lower than the TCEs currently contracted, due to the impact of ballast days at the end of the third quarter. The number of ballast days at the end of the third quarter was 429 for VLCCs, 394 for Suezmax tankers and 128 for LR2/Aframax tankers. The estimated spot TCE rates and cash breakeven rates exclude the impact of the Acquisition. The Company expects the Acquisition vessels delivered in the fourth quarter to load their first cargos for the Company in
The Board of Directors
Limassol,
Questions should be directed to:
+47 23 11 40 00
+47 23 11 40 00
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.
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 worldwide 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
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 IFRS (“non-GAAP”). See Appendix 1 for a full description of the measures and reconciliation to the nearest IFRS measure.
Attachment
- 3rd Quarter 2023 Results
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