Frontline Predicts Strong 2001

Monday, February 26, 2001
Norway's Frontline, the world's biggest tanker company, reported record net profits for 2000 compared to a 1999 loss and forecast higher earnings for 2001. Net 2000 profits leapt to $313.9 million from a $86.9 million loss in 1999, helped by a strong tanker market and a takeover of U.S. rival Golden Ocean Group. Net operating revenues surged to $599.9 million from $253.2 million in 1999. "For the full year (2001) result the board are cautiously optimistic about the opportunity to improve the 2000 results further," the company said in a statement. But it sees earnings falling in the first quarter, partly because of an oil production cut by OPEC that would curb demand for tonnage. Frontline has 29 Suezmax tankers and 30 VLCCs. Frontline shares have traded between a low of 36.9 crowns in January 2000 to a November peak of 170. "It is likely to that the earnings during the first quarter will exceed $100 million," Frontline said. It earned a net $181.2 million in the fourth quarter of 2000. "After a very strong finish of the year 2000, the market has slowed down in the first quarter 2001 but rates are still healthy," it said. Timecharter earnings so far in 2001 have averaged $40,000 a day for Suezmaxes and $60,000 for VLCCs, it said. In the fourth quarter of 2000, single fixtures for VLCCs had exceeded $100,000 a day and $90,000 for Suezmaxes. For 2000 as a whole, Frontline said "the tanker market situation showed increasing strength...with VLCC rates more than tripling and Suezmax rates more than doubling between the first and last quarters." It said that extensive scrapping and modest newbuilding deliveries in 1999 and the first half of 2000 helped bolster prices. Higher OPEC oil production from early 2000 also raised demand for shipping. Frontline said net profits included an unrealised currency gain of $14.8 million. Golden Ocean Group, with 10 drybulk carriers and eight VLCCs, was included in the accounts from October 10 after a takeover. - (Reuters)

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter May 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

DP World Launches $1.2 bln Sukuk Issue to Cover Tender

Dubai-based ports operator DP World launched a seven-year $1.2 billion sukuk issue on Tuesday, a document from lead managers showed.   The issue, structured to

Baltic Index Falls on Weaker Demand

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell on Tuesday as demand for larger vessel segments declined.

China Shipbuilding Plans Major Restructuring

State-owned China Shipbuilding Industry Corp (CSIC) is undertaking a major restructuring as it grapples with an industry downturn, and it will be the largest restructuring

Environmental

Design Concept: Zero Emissions Cargo Ship

The designs for a multi access zero emissions cargo ship will be unveiled at the 5th Natural Propulsion Seminar in Wageningen, Netherlands, on Tuesday, May 24. The

First Cruise Company Fined under Australia’s New Fuel Rules

Australia’s NSW Environment Protection Authority (EPA) has fined Carnival PLC $15,000 after one of its P&O Cruises ships, the Pacific Jewel, breached new low sulfur fuel regulations in Sydney Harbour.

HUMMEL LNG Hybrid Barge Begins Second Season

For over one year the HUMMEL has been contributing to improved air quality at the port of Hamburg. Becker Marine Systems’ LNG Hybrid Barge will also be supplying

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Naval Architecture Pipelines Port Authority Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0813 sec (12 req/sec)