Frontline plc (the âCompanyâ or âFrontlineâ), today reported unaudited results
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for the six months ended June 30, 2023:
Highlights
- Highest second quarter profit since 2008 of $230.7 million, or $1.04 per
basic and diluted share for the second quarter of 2023.
- Adjusted profit of $210.0 million, or $0.94 per basic and diluted share for
the second quarter of 2023.
- Declared a cash dividend of $0.80 per share for the second quarter of 2023.
- Reported revenues of $512.8 million for the second quarter of 2023.
- Reported spot TCEs for VLCCs, Suezmax tankers and LR2/Aframax tankers in the
second quarter of 2023 were 64,000 , 61,700 and 52,900 per day,
respectively.
- For the third quarter of 2023, we estimate spot TCE on a load-to-discharge
basis of $53,200 contracted for 74% of vessel days for VLCCs, $48,800
contracted for 67% of vessel days for Suezmax tankers and $40,500 contracted
for 57% of vessel days for LR2/Aframax tankers.
Lars H. Barstad, Chief Executive Officer of Frontline Management AS, commented:
âFrontline had another solid quarter as supportive tanker fundamentals
continued. With all our asset classes performing, Frontlineâs lean and efficient
platform continued to yield shareholder returns. Despite OPEC production cuts,
global oil in transit outperformed seasonal patterns, as Asian oil demand
attracted incremental barrels from other regions of the world. Despite
uncertainties in the global macro environment, demand for oil and oil products
seem largely unaffected as we head towards the winter in the northern
hemisphere. The current softness in certain tanker segments is in line with
historical seasonal expectations and improving refinery margins aligns with the
market playbook for this time of the year.â
Average daily time charter equivalents (âTCEsâ)(1)
±----------------------------------------------±---------±-------±---------+
| | | |Estimated |
| | | | average |
| | | |daily cash|
| ($ per | Spot TCE | % |breakeven |
| day) Spot TCE |estimates |Covered | rates |
±----------------------------------------------±---------±-------±---------+
| 2023 Q2 2023 Q1 2023 Q4 2022 2022 | Q3 2023 | 2023 |
| | | |
|VLCC 58,300 64,000 52,500 63,200 31,300| 53,200 74% | 27,000 |
| | | |
|Suezmax 62,900 61,700 64,000 57,900 37,100| 48,800 67% | 23,400 |
| | | |
|LR2 / | | |
|Aframax 54,600 52,900 56,300 58,800 38,500| 40,500 57% | 16,600 |
±----------------------------------------------±------------------±---------+
We expect the spot TCEs for the full third quarter of 2023 to be lower than the
TCEs currently contracted, due to the impact of ballast days at the end of the
second quarter. The number of ballast days at the end of the second quarter was
435 for VLCCs, 353 for Suezmax tankers and 167 for LR2/Aframax tankers.
The Board of Directors
Frontline plc
Limassol, Cyprus
August 23, 2023
Ola Lorentzon - Chairman and Director
John Fredriksen - Director
Ole B. Hjertaker - Director
James O'Shaughnessy - Director
Steen Jakobsen - Director
Marios Demetriades - Director
Questions should be directed to:
Lars H. Barstad: Chief Executive Officer, Frontline Management AS
+47 23 11 40 00
Inger M. Klemp: Chief Financial Officer, Frontline Management AS
+47 23 11 40 00
Forward-Looking Statements
Matters discussed in this report may constitute forward-looking statements. The
Private Securities Litigation Reform Act of 1995 provides safe harbor
protections for forward-looking statements, which include statements concerning
plans, objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than statements of
historical facts.
Frontline plc and its subsidiaries, or the Company, desires to take advantage of
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995 and is including this cautionary statement in connection with this safe
harbor legislation. This report and any other written or oral statements made by
us or on our behalf may include forward-looking statements, which reflect our
current views with respect to future events and financial performance and are
not intended to give any assurance as to future results. When used in this
document, the words âbelieve,â âanticipate,â âintend,â âestimate,â âforecast,â
âproject,â âplan,â âpotential,â âwill,â âmay,â âshould,â âexpectâ and similar
expressions, terms or phrases may identify forward-looking statements.
The forward-looking statements in this report are based upon various
assumptions, including without limitation, managementâs examination of
historical operating trends, data contained in our records and data available
from third parties. Although we believe that these assumptions were reasonable
when made, because these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict and
are beyond our control, we cannot assure you that we will achieve or accomplish
these expectations, beliefs or projections. We undertake no obligation to update
any forward-looking statements, whether as a result of new information, future
events or otherwise.
In addition to these important factors and matters discussed elsewhere herein,
important factors that, in our view, could cause actual results to differ
materially from those discussed in the forward-looking statements include the
strength of world economies, fluctuations in currencies and interest rates,
general market conditions, including fluctuations in charter hire rates and
vessel values, changes in the supply and demand for vessels comparable to ours,
changes in worldwide oil production and consumption and storage, changes in the
Companyâs operating expenses, including bunker prices, dry docking and insurance
costs, the market for the Companyâs vessels, availability of financing and
refinancing, our ability to obtain financing and comply with the restrictions
and other covenants in our financing arrangements, availability of skilled
workers and the related labor costs, compliance with governmental, tax,
environmental and safety regulation, any non-compliance with the U.S. Foreign
Corrupt Practices Act of 1977 (FCPA) or other applicable regulations relating to
bribery, the impact of increasing scrutiny and changing expectations from
investors, lenders and other market participants with respect to our ESG
policies, general economic conditions and conditions in the oil industry,
effects of new products and new technology in our industry, the failure of
counter parties to fully perform their contracts with us, our dependence on key
personnel, adequacy of insurance coverage, our ability to obtain indemnities
from customers, changes in laws, treaties or regulations, the volatility of the
price of our ordinary shares; our incorporation under the laws of Cyprus and the
different rights to relief that may be available compared to other countries,
including the United States, changes in governmental rules and regulations or
actions taken by regulatory authorities, potential liability from pending or
future litigation, general domestic and international political conditions,
potential disruption of shipping routes due to accidents, environmental factors,
political events, public health threats, international hostilities including the
ongoing developments in the Ukraine region, acts by terrorists or acts of piracy
on ocean-going vessels, the length and severity of epidemics and pandemics and
their impacts on the demand for seaborne transportation of petroleum products,
the impact of increasing scrutiny and changing expectations from investors,
lenders and other market participants with respect to our Environmental, Social
and Governance policies, the impact of port or canal congestion and other
important factors described from time to time in the reports filed by the
Company with the Securities and Exchange Commission or Commission.
We caution readers of this report not to place undue reliance on these forward-
looking statements, which speak only as of their dates. These forward-looking
statements are no guarantee of our future performance, and actual results and
future developments may vary materially from those projected in the forward-
looking statements.
This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act.
(1) This press release describes Time Charter Equivalent earnings and related
per day amounts, which are not measures prepared in accordance with IFRS (ânon-
GAAPâ). See Appendix 1 for a full description of the measures and reconciliation
to the nearest IFRS measure.
Kilde
