Frontline reported unaudited results for the third quarter ended September 30, 2015. Net income attributable to the company was $17.4 million, or $0.09 per share.
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This compares with net income attributable to the company of $17.4 million, or $0.11 per share, for the previous quarter. The company recorded a gain of $1.8 million in the third quarter from the termination of the lease for the Front Glory.
The TCEs earned in the spot and period market in the third quarter by the company's VLCCs and Suezmax tankers were $45,600 and $28,100, respectively, compared with $50,600 and $33,800 in the previous quarter. The spot earnings for the company's VLCCs and Suezmax vessels were $49,100 and $28,700, respectively compared with $53,600 and $38,000 in the preceding quarter.
Total operating expenses in the third quarter were in line with the previous quarter. Dry docking costs fell by $2.2 million compared with the previous quarter. Two vessels were dry docked in the third quarter compared with four in the previous quarter.
Contingent rental expense represents amounts accrued following changes to the charter parties related to the four vessels leased from German limited partnerships and the vessels leased from Ship Finance.
Contingent rental expense in the third quarter includes $16.6 million attributable to the amended lease agreements with Ship Finance, which took effect on July 1, 2015.
Net income attributable to the company was $65.9 million, or $0.42 per share, for the nine months ended September 30, 2015.
The average daily TCEs earned by the company's VLCCs and Suezmax tankers in the spot and period market in the nine months ended September 30, 2015 were $48,500 and $31,700, respectively, compared with $23,800 and $19,300, respectively, in the nine months ended September 30, 2014.
The spot earnings for the company's VLCCs and Suezmax vessels were $51,600 and $34,000, respectively, in the nine months ended September 30, 2015 compared with $23,000 and $19,700, respectively, in the nine months ended September 30, 2014.
The company estimates that average daily total cash cost breakeven rates for the remainder of 2015 will be approximately $27,700 and $22,100 for the company's VLCCs and Suezmax tankers, respectively. ■