May 28, 2022

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Miserable numbers in the third quarter of Frontline

Miserable numbers in the third quarter of Frontline


Last winter, there was a boom in the tanker market at rates of over $300,000 a day. The market remained usable throughout the spring and summer of 2020, but since then it’s mostly been a misery. However, Frontline did well in the first quarter when the company largely continued to surf the good 2020 market and generated a decent profit of $28.7 million. But in the second quarter, the carrier went on a rampage and lost $26.7 million. In the third quarter, the deficit increased further to end at $33.2 million. According to estimates obtained by Infront for TDN Direkt from eight analysts, a shortfall of $34 million was expected.

Front Line reports an average rate of $10,500 each. PR ship. Today for the fleet of giant oil tankers. The midsize suezmax jets in the fleet sailed at $7,900 per day while the LR2 sailed at $10,700.

seasonally weak

The third quarter is usually weak seasonally. This is due to a combination of some large oil producers consuming a lot of oil even during the summer, and refineries in Asia using time to shut down for maintenance before winter, says Frontline Management CEO Lars Barstad.

  • Acquisitions and mergers were the recipe for success for Frontline after ship owner John Fredriksen took over the original Swedish shipping company Frontline in the mid-1990s.
  • This was followed by a series of aggressive acquisitions of Norwegian and foreign carriers.
  • Combined with new contracts, these transactions created the basis for what became the all-time dividend machine in Norwegian shipping. «
  • We have paid a total of six billion dollars in dividends to our shareholders.
  • In addition, we split from the ship-owning company Ship Finance International, which has so far sent $2 billion to shareholders.
  • There were no other shipping companies close to this, Fredriksen said in an interview with Finansavisen at the end of August 2019.
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(dollar mill) 3. kV/21 3. kV/20
operating revenue 171,8 247.4
Operating results -19.2 71,0
Result before taxes -33.2 57,1
Result after tax -33.2 57,1