Tanker Owner Frontline Beats Forecasts

OSLO, May 29 (Reuters) – Crude oil tanker agency Frontline posted first-quarter working revenue above expectations on Friday and stated it had renegotiated its relationship with chartering agency Ship Finance to strengthen its stability sheet.

Once the world’s largest crude tanker agency, Frontline has struggled for years regardless of a restructuring in 2012, however elevated demand for transport and storage amid the present oil provide glut has boosted demand.

To scale back its prices, the tanker arm of delivery tycoon John Fredriksen’s sprawling enterprise pursuits additionally struck a brand new take care of Ship Finance, a vessel-owning firm leasing out ships, giving the U.S. firm a 27.7 p.c stake in Frontline and adjusting the way in which the 2 cut up their income.

Ship Finance, spun off from Frontline in 2004, can also be managed by Fredriksen.

“This agreement significantly strengthens Frontline’s balance sheet and reduces the financial risk. The board and management can now shift the focus from balance sheet restructuring to business development and growth,” the corporate stated in a press release.

Oslo-listed Frontline’s working revenue jumped to $39.5 million within the quarter from $5.6 million a 12 months earlier, beating expectations for $36 million in a Reuters ballot of analysts. .

The agency noticed its second-quarterly working revenue excluding one-time features and losses beneath the primary quarter outcome because of the dry docking of 4 vessels. It stated a optimistic market growth was anticipated to contribute to second-quarter income according to the primary quarter.

Shares within the firm traded up 5.1 p.c by 0745 GMT, whereas Oslo’s benchmark index was broadly flat.

Fredriksen owns 26.48 p.c of Frontline’s shares via his funding automobile Hemen Holding. (Reporting by Stine Jacobsen; Editing by Terje Solsvik and David Holmes)