Frontline Board is pleased to announce a second consecutive quarter of strong earnings.
Frontline Ltd. reports net operating income before depreciation of $174.0 million and net income of $155.1 million for the second quarter of 2003. Earnings per share for the quarter were $2.04.
Net operating revenues decreased by 12 per cent compared with the first quarter of 2003. The average daily time charter equivalents ("TCEs") earned in the spot and period market by the Company's VLCCs, Suezmax tankers, and Suezmax OBO carriers were $46,000, $39,600 and $35,200, respectively, compared with $$55,400, $40,800 and $42,400, respectively in the immediately preceding quarter. In the second quarter the Company recorded a provision for loss on sale of assets of $4.3 million, relating to the sale, in the third quarter, of its shares in two vessels owned through joint ventures.
Net interest expense for the quarter was $13.8 million (2002 comparable quarter: $15.6 million). Other financial items for the quarter were positive $18.0 million of which $17.1 million is attributable to the gain recorded on the settlement of the Bank of Nova Scotia Equity Swap Line. In the second quarter of 2003, the Yen was largely unchanged against the US Dollar, resulting in only a small foreign currency impact for the Company on the Yen debt in subsidiaries and associated companies.
For the six months ended June 30, 2003 the Company reports net operating income before depreciation of $379.8 million and net income of $334.7 million. Earnings per share for the six months were $4.39. This is the best half year result ever achieved by the Company.
The average daily TCEs earned in the spot and period market by the Company's VLCCs, Suezmax tankers, and Suezmax OBO carriers in the six months were $50,700, $40,200 and $38,700, respectively. As of August 4, 2003, Frontline has cash breakeven rates for VLCCs and Suezmaxes of $20,600 and $14,100, respectively.
The results for the periods of 2002 presented have been restated, principally to reflect the adoption of Financial Accounting Standard 142 "Goodwill and Other Intangible Assets". The Company adopted FAS 142 effective January 1, 2002 as disclosed in the preliminary fourth quarter and financial year 2002 report.
The complete report is enclosed on the following link: