More on Frontline's (FRO) Q4 results: Free cash position $137.6M, -14% Y/Y. Says it will...

More on Frontline's (FRO) Q4 results: Free cash position $137.6M, -14% Y/Y. Says it will continue to reduce its fleet in order to reduce its financial exposure. but there is a risk it won't have sufficient cash to repay a $225M convertible bond loan maturing in April 2015 if the tanker market doesn't recover; such a situation may force a restructuring of the company. Shares -7.9% premarket.

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Comments (1)
  • Herr Hansa
    , contributor
    Comments (3130) | Send Message
    Quite the overreaction in selling. In that two year time span, it should be easy to continue selling older vessels. Demand for steel in India continues, and unless the government restricts or blocks shipbreaking, sales of older vessels should not be a problem. The other growing trend is a need for more FPSO conversions, as more offshore oil assets move towards production. Quite a bit can happen in two years, and if economies are near bottom levels now, we can expect economic improvement over that time, with shipping to improve alongside.
    22 Feb 2013, 05:26 PM Reply Like
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