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Frontline 2012 swings back to profit in Q1

Frontline 2012 has swung back to the black in the first quarter ended 31 March 2014 as its operating income received a boost from taking in four MR product tankers.

Lee Hong Liang, Asia Correspondent

May 27, 2014

1 Min Read
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Net profit for the first quarter rose to $14.53m as against a loss of $4.76m in the previous corresponding period.

Revenue also improved to $59.91m compared to $32.07m a year ago.

The net operating income jumped to $17.83m during the quarter compared to just $176,000 a year ago.

Frontline 2012 took delivery of four MR product tankers, namely Front Dee, Front Clyde, Front Esk and Front Mersey, during the first quarter.

Despite the strong first quarter results, the companyhas warned of challenges ahead due to the weak tanker market.

“The negative development in the crude and product tanker markets in the second quarter are likely to give a weaker operating result (excluding one-time gains and losses) in the second quarter,” Frontline 2012 said.

Frontline 2012, the offshoot of tanker company Frontline, has been continuing the process of streamlining the company’s activities by selling five fuel efficient capesize newbuildings to Knightsbridge and then combined its remaining fleet of 25 fuel efficient capesize newbuildings with Knightbridge’s fleet.

As at 31 March 2014, Frontline 2012’s newbuilding programme totalled 62 vessels including oil tankers and capesize vessels. The company currently operates a fleet consisting of six VLCCs, four suezmaxes and six MR tankers.

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About the Author

Lee Hong Liang

Asia Correspondent

Singapore-based Lee Hong Liang provides a significant boost to daily coverage of the Asian shipping markets, as well as bringing with him an in-depth specialist knowledge of the bunkering markets.

Throughout Hong Liang’s 14-year career as a maritime journalist, he has reported ‘live’ news from conferences, conducted one-on-one interviews with top officials, and had the ability to write hard news and featured stories.

 

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