- Excluding Q2 and Q3 vessel impairment charges of $22.4M and $81.3M, respectively, Frontline's (FRO +16.6%) net loss narrowed to $14M in Q2 from $39M in Q3.
- The company's average daily time equivalents for its VLCCs and Suzemax oil tankers were respectively $16.1K and $12.4K, compared with $14.1K and $13.8K in Q2. Spot earnings for double hull VLCCs and Suzemax tankers were $13.9K and $12.4K vs. $11.2K and $13.8K.
- Cash/equivalents and restricted cash totaled $138.5M at quarter's end, down from $159.5M at the end of Q2. Debt and lease obligations amounted to $1.12B, down slightly from $1.14B. The company says full debt repayment remains dependent on "a sustained improvement in tanker rates in the years to come."
- Frontline asserts the VLCC spot market has "shown signs of recovery," but still thinks "it may take some time before a reasonable market balance is restored and sustained recovery of the tanker market occurs."
- At the same time, the company notes there's increased shipping activity in the Caribbean and Atlantic, and that current market volatility is "giving market returns not seen since 2010."
- Other shipping firms also rallied today: DRYS +6.4%. EGLE +6.9%. GNK +13.2%. TNK +4.7%. DHT +2.8%.
- PR, presentation, CC transcript
Frontline closes with big gains following Q3 report; peers also rise
Nov 27 2013, 16:37 ET