Tankship owners Frontline Ltd, domiciled in Bermuda, formerly Sweden, announce Q1 2012 results, remain cautious until market shows recovery
HIghlights of the report are as follows:
- Net income attributable to the Company of $7.2 million and earnings per share of $0.09 for the first quarter of 2012.
- Frontline sold the double hull Suezmax tanker, Front Alfa, and recognized a loss of $2.2 million.
- They terminated the charter party for the single hull VLCC, Titan Orion (ex-Front Duke), and recognized a gain of $9.4 million.
- They purchased $10.0 million notional value of the convertible bonds due 2015 for $5.4 million and recognized a gain of $4.6 million.
- Frontline will not pay a dividend for the first quarter of 2012.
Strategy and Outlook
The Board sees a challenging supply / demand situation for the tanker market where the combined VLCC and Suezmax fleet between 2004 and 2012 increased by 98 percent without being backed by a similar increase in demand. Frontline will continue to remain cautious and focus its resources on the present activities until a clearer sign of recovery can be seen in the tanker market.