John Fredriksen-controlled oil tanker shipping company Frontline Ltd. has reported an increased net income of USD 124.3 million in 2015, compared to USD 86.2 million reached in 2014.
Robert Hvide Macleod, Chief Executive Officer of Frontline Management AS, said that Frontline’s fourth quarter of 2015 was strong with net income attributable to the company reaching USD 58.6 million.
“We are off to a very good start thus far in 2016, buoyed by continued strength in the tanker market, and we are pleased with the earnings we have secured thus far in Q1. The market has corrected downwards over the recent weeks, but overall demand for tankers remains high. Our highly competitive cash breakeven rates enable us to achieve higher cash flow generation per day, and makes Frontline robust during downturns in the market, thus enhancing returns to our shareholders,” Macleod added.
During the quarter, the company finalized its merger with Frontline 2012, thereby creating the second biggest tanker shipping company. Additionally, Frontline signed a new USD 500.1 million senior secured term loan facility intended for refinancing existing loans. The credit will mature in December 2020.
As of December 31, 2015, the shipping company’s total fleet consists of 88 vessels, including newbuildings, with an aggregate capacity of approximately 15 million dwt.
The company estimates that average daily total cash cost breakeven time charter equivalent (TCE) rates for the remainder of 2016 will be approximately USD 22,500, USD 17,600, USD 15,000 and USD 13,900 for its owned and leased VLCCs, Suezmax tankers, LR2 tankers and MR product tankers, respectively.