Frontline Ltd. reported unaudited results for the year ended December 31, 2015. Net income attributable to the company was $58.6 million for the fourth quarter of 2015 and $154.6 million for the year.
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The company announced a cash dividend of $0.35 per share for the fourth quarter of 2015. On November 30, 2015, Frontline completed the previously announced merger with Frontline 2012 Ltd.
Frontline paid a dividend of $0.25 per share in December 2015 (adjusted for a 1-for-5 reverse stock split that was approved in January 2016).
The company signed a new $500 million term loan facility in December 2015, reducing the average daily cash cost breakeven TCE rates per operating vessel by approximately $1,400 per day for 2016.
Robert Hvide Macleod, chief executive officer, commented: "We are very pleased to report yet another strong quarter with net income attributable to the Company of $58.6 million. In the fourth quarter, we completed our merger with Frontline 2012.
"This was a transformational event for Frontline as we emerged as a much stronger company with a large, diversified fleet of crude oil and refined product tankers. We believe that due to Frontline's brand, financial flexibility, and scale, it holds a unique position among its peers."
As of December 31, 2015, the company’s total fleet consists of 88 vessels, including newbuildings, with an aggregate capacity of approximately 15 million dwt.
Frontline estimates that average daily total cash cost breakeven TCE rates for the remainder of 2016 will be approximately $22,500, $17,600, $15,000 and $13,900 for its owned and leased VLCCs, Suezmax tankers, LR2 tankers and MR product tankers, respectively. Frontline believes these rates are highly competitive.
In January 2016, the company entered in to an agreement to charter out one Suezmax tanker for two years. The agreement is index-linked with a base rate of $30,000 per day for the first year and $27,000 per day for the second year with a profit share arrangement.
In January 2016, the company extended existing time charter agreements on two LR2’s for 24 months at $28,000 per day.
In February 2016, the company entered in to an agreement to charter out a 2001-built VLCC at $46,750 per day for 12 months. ■