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Frontline $162.9m in the red for 2014

Frontline $162.9m in the red for 2014
John Fredriksen’s Frontline reported a full year net loss of $162.9m, although losses narrowed in the fourth quarter as tanker markets started to improve.

The full year loss was an improvement on 2013 when the tanker company lost $188.5m. Operating revenues for 2014 were up at $559.7m compared to $517.2m in the previous year.

In the fourth quarter Frontline reported a net loss of $13m compared to $59.6m in the preceding quarter.

Commenting on the market in the fourth quarter Frontline said: “The market rate for a VLCC trading on a standard ‘TD3’ voyage between the Arabian Gulf and Japan in the fourth quarter of 2014 was WS52, representing an increase of WS7 points from the third quarter of 2014 and WS1 point lower than the fourth quarter of 2013.

“The market rate for a suezmax trading on a standard 'TD5' voyage between West Africa and Philadelphia in the fourth quarter of 2014 was WS87, representing an increase of WS16 points from the third quarter of 2014 and an increase of WS21 points from the fourth quarter of 2013.”

Looking ahead the company said it was confident that it would be able to repay its convertible bond loan, which matures in April 2015. It has outstanding balance on the convertible bond loan from $190m at the end of September 2014 to $93.4m through bond buy backs and debt/equity swaps.

On the business outlook in the first quarter Frontline commented: “The continued positive development in the crude tanker market into the first quarter is likely to give an improved operating result (excluding one time gains and losses) in the first quarter.”

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