Marine Link
Thursday, May 24, 2018

Tanker Firm Frontline Sees Weak Quarters Ahead

Maritime Activity Reports, Inc.

August 30, 2017

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.


Reporting by Terje Solsvik 

Maritime Reporter Magazine Cover May 2018 - Marine Propulsion Edition

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News