Frontline cashes in $214-million quarterly profit
Norway’s Frontline, the world’s largest tanker shipping operator, earned a net income of $214 million in the first quarter of 2004, up 19 percent from the $180-million profit made in same quarter last year.
The company reported that the average daily time charter equivalent rate earned in the spot and period market by its very large crude carriers rocketed to $74,900 in the latest quarter, from $40,600 in the fourth quarter of 2004.
Total operating revenues soared to $451 million in the first quarter, up from $339 million in the same quarter last year.
Frontline announced a cash dividend of $5.00 per share.
In the first quarter, Frontline’s wholly-owned subsidiary, Ship Finance International Ltd. completed the acquisition of 46 tankers, plus an option to acquire a further tanker, from Frontline. The acquisition was financed using the proceeds of the issue of $580 million in 8.5-percent notes in December 2003, and refinancing of existing debt with a new $1.1 billion loan facility.
On March 31, Frontline had total cash and cash equivalents of $857 million.
Frontline, which is already listed on the New York stock exchange, has recently announced a plan to list its subsidiary Ship Finance International Ltd. on the New York stock exchange under a partial spin-off from its parent group.