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Frontline Ltd posts increased loss for 2013

Frontline Ltd posts increased loss for 2013
Frontline Ltd, a separate company to hived-off unit Frontline 2012, posted a net loss attributable to the company of $188.5m for full year 2013, compared to a net loss of  $82.7m in 2012, reflecting the highly depressed state of the tanker market in the first half of last year.

Results progressively improved as the year wore on, however, with attributable net losses decreasing to $36.4m in Q3 and $13.0m in Q4.

The average daily TCEs earned by the company’s VLCC and Suezmax tankers in the spot and period market for the full year were $17,400 and $13,400 respectively, compared with $22,200 and $15,000 in 2012. But in Q4 2013 the VLCC earnings rallied to $22,400, while Suezmaxes remained slightly below par at $12,900.

“The recent increase in rates which began in the second half of last year is a sign of an improved balance in the tanker market,” Frontline said in its results statement, “and the company expects that the supply/demand balance will improve further.” However, it warned that “this is a fine balance which can easily be changed by increased fleet supply caused by increased ballast speed, decrease in vessel scrapping and aggressive newbuilding ordering.”