John Fredriksen regulated vessel titanFrontline Ltd reported very first quarter results that consisted of take-home pay of $165.3 million compared to $40.1 million in the very same quarter of 2019.
“Frontline achieved its strongest first quarter result since 2008 amid an extremely volatile rate environment,” stated Robert Hvide Macleod, Chief Executive Officer of Frontline Management AS. “We are extremely thankful to our staff and crewmembers for their extraordinary efforts and dedication, which contributed to our results during this challenging period. Our strong performance has carried over into the second quarter, as reflected in our bookings thus far. We have also secured some very attractive time charters and we will continue to explore period charter opportunities going forward. Our market view remains constructive, based on an order book at 25-year lows, an aging fleet and an expectation that oil volumes will return going forward as oil demand recovers. Frontline enjoys historically low estimated daily cash breakeven rates of $18,600 per day on average for our full fleet for the balance of 2020. The tanker market has corrected downwards in recent weeks and faces pressure in the short term, both from production cuts and inventory draws, but we believe we are well positioned due to our strong balance sheet and low cost base.”
In its quarterly record the firm claims that, as a result of the current toughness in products prices as well as the simultaneous decline in gas spreads, it has actually chosen to delay scrubber installments on 2 VLCCs as well as 2 Suezmax vessels. The firm approximates a favorable money effect of roughly $7.6 million in 2020 arising from these deferments, omitting any type of take advantage of lowered vessel off hire.
Read the complete quarterly record HERE.
