Frontline posted a net loss of $12.09m in the first quarter, narrowing from a loss of $18.76m in the same period of last year. The loss during the quarter included a loss on the sale of the VLCC Ulysses of $15.7m.
Revenue in the quarter ended 31 March 2014 rose 35% year-on-year to $170m.
Looking ahead, Frontline said that the “recent negative development in the tanker market is likely to give a weaker operating result (excluding one-time gains and losses) in the second quarter.”
It revealed that the average daily time charter equivalents earned in the spot and period market in the first quarter for VLCCs and suezmaxes were $32,700 and $27,700, respectively, compared with $22,400 and $12,900, respectively, in the preceding quarter.
Frontline estimated the average total cash cost breakeven rates for the remainder of 2014 on a time charter equivalent basis for VLCCs and suezmaxes are approximately $25,200 and $17,800, respectively.
The company has a total of 627 VLCCs and 449 suezmax tankers in its fleet at the end of the first quarter.
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