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Teekay Tankers Ltd. Message Board

  • mikeyhorsehead mikeyhorsehead Jun 6, 2013 7:39 AM Flag

    Frontline 2012 falls to red

    Frontline 2012 falls to red
    John Fredriksen’s Frontline 2012 has fallen into the red in the first quarter of the year as charter rates fell away.

    The shipowner, which Fredriksen exclusively revealed to TradeWinds is targeting an IPO within the next eight months, posted a net loss of $4.75m during the three months to 31 March compared to a profit of $2.43m in the first quarter of last year.

    The result came in at a loss per share of $0.02 beating the average estimate of $0.09 per share predicted by analysts polled by Bloomberg.

    On an operating level the company just about managed to end in the black with income of $176,000 against $7.6m in the same period of the preceding year as expenses increased.

    Revenue during the first quarter dipped slightly to $32m from $34.6m.

    Average time charter equivalent (TCE) rates for Frontline 2012’s fleet of six VLCCs and four suezmax tankers dived to $19,600 and $11,800 respectively from $27,900 and $21,200 in the first quarter of 2012.

    Despite continuing weakness in the market the company says there are “clear indications” that rates are unlikely to fall any further.

    Frontline 2012 estimates it needs to see TCE rates of $16,700 for VLs and $13,700 suezmaxes during the remainder of 2013 if it is to break even.

    A newbuilding spree this year has taken its newbuilding tally to 58 vessels cutting across the tanker, bulker, LPG and product tanker sectors.

    Most of the new additions will join its ranks in 2014 and 2015 by which time the shipping industry is expected to have staged a significant recovery.

    “Due to the low ordering prices and high fuel efficiency of our newbuildings Frontline 2012 will have significant lower long term capital cost and better operating economics than the majority of our main competitors,” it said.

    TradeWinds

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