Tanker Firm Frontline Sees Weak Quarters Ahead
Oslo-listed tanker firm Frontline, controlled by shipping tycoon John Fredriksen, reported a deeper than expected second-quarter loss on Wednesday and said markets were likely to remain weak for the next few quarters due to overcapacity.
The company reported a loss of $19.4 million for the second quarter, against analysts' expectations for a $17 million deficit, and said it would not pay a dividend.
By 0714 GMT Frontline's shares were down 5.6 percent at 40.5 Norwegian crowns ($5.22).
"The upcoming quarters may present challenges as vessel supply continues to increase," Frontline said on Wednesday, adding it aims to take advantage of weak markets to buy vessels.
The market for Frontline's tankers will likely begin to improve in 2018, it said, as the pace of deliveries of new vessels slows and older ships are retired from the global fleet.
The company abandoned plans in June to buy the New York-listed rival DHT Holdings after its proposals were repeatedly rejected by DHT's board, saying it would focus on renewing its fleet instead.
The company abandoned plans in June to buy the New York-listed rival DHT Holdings after its proposals were repeatedly rejected by DHT's board, saying it would focus on renewing its fleet instead.
Reporting by Terje Solsvik