The result marks an improvement on a $1m loss in the third quarter of 2012, but the company would have slipped deeper into the red without the refund.
Frontline 2012 received the $50.6m refund in August for J0027, a newbuilding contract at Jinhaiwan which was cancelled due to excessive delays.
The company also cancelled its fourth and fifth contracts at Jinhaiwan in August and September and has since booked two newbuilding contracts. Frontline 2012's newbuild orderbook now stands at 61 vessels with $2.4bn of instalments outstanding.
Average time charter equivalent (TCE) earnings across the spot and period markets for the company's VLCCS in Q3 were $21,100 per day, down from $25,100 per day in the same quarter last year. Suezmax earnings rose from $10,400 per day to $11,900 per day for the same periods.
Just this month, Frontline 2012 agreed to sell its eight 83,000 cu m VLGCs under construction at Jiangnan Chanxing Shipyard to Avance Gas Holding Limited (AGHL) as part of its streamlining process. Frontline 2012 became an equal shareholder in AGHL, along with Sungas Holdings and Stolt-Nielsen, earlier this year.
Frontline 2012 is targeting a New York listing in the third quarter of 2014 and is confident for the last quarter of this year "the recent positive development in the tanker market, with VLCC rates currently above $40,000 per day, is likely to give improved operating results in the fourth quarter," it stated in its earnings report.
Copyright © 2024. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited.  Add Seatrade Maritime News to your Google News feed.   Â
