Frontline announced net income attributable to the company of $31.1 million in the first quarter, equivalent to earnings per share of $0.25.
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This compares with a net loss of $13 million for the previous quarter, equivalent to a loss per share of $0.12.
The net loss attributable to the company in the previous quarter includes a non-cash gain of $40.3 million arising on the termination of the charter parties for Front Opalia, Front Comanche and Front Commerce, a non-cash gain of $1.5 million arising on the convertible bond buy back in October and a non-cash loss of $41.1 million arising on the convertible bond swaps in October and December.
The average daily time charter equivalents (TCEs) earned in the spot and period market in the first quarter by the company's VLCCs and Suezmax tankers were $49,400 and $33,100 compared with $27,900 and $26,000 in the previous quarter. The spot earnings for the company's VLCCs and Suezmax vessels were $52,200 and $35,000 compared with $27,400 and $27,200 in the preceding quarter.
Operating expenses were in line with the previous quarter. No vessels were dry docked in the first quarter or the previous quarter.
Contingent rental expense represents amounts accrued following changes to certain charter parties in December 2011 and increased in the first quarter as compared to the preceding quarter primarily due to an increase in actual spot market rates.
In May 2015, the company estimates average daily total cash cost breakeven rates for the second quarter of 2015 on a TCE basis for its VLCCs and Suezmax tankers of approximately $31,300 and $23,100, respectively, including estimated cash sweep to Ship Finance International Limited of $6,500/day.
Following the agreement with Ship Finance to amend the terms of the long term charter agreements with effect from July 1, 2015, the company estimates average daily total cash cost breakeven rates for the second half of 2015 on a TCE basis for its VLCCs and Suezmax tankers of approximately $24,800 and $19,500, respectively. ■