John Fredrikson's Frontline has reported a net income of US$51.6 million for the fourth quarter of 2008, equivalent to earnings per share of US$0.66 compared with net income of US$107.8 million for the third quarter of 2008, equivalent to earnings per share of US$1.39.
Net income in the fourth quarter includes non-operating losses of US$28.4 million, mainly related to a loss following a market price adjustment of shares owned in Overseas Shipholding Group (OSG), compared with the third quarter which included a US$29.3 million mark-to-market loss on a forward contract for OSG shares which was recorded under other non-operating items.
Net income for the fourth quarter of 2008, excluding non-operating losses, was US$79.9 million and earnings per share were US$1.03. The reported earnings reflect a weaker spot market compared with the third quarter of 2008.
Frontline's newbuilding program consists of eight Suezmax tankers being built at Jiangsu Rongsheng Heavy Industries, China, four VLCCs being built at Shanghai Waigaoqiao Shipbuilding and six VLCCs being built at Zoushan Jinhaiwan.
The first VLCC from Waigaoqiao, 'Front Kathrine', was delivered on January 8, 2009. The second VLCC from Waigaoqiao, is scheduled to be delivered in the second quarter of 2009. The eight suezmax tankers being built at Rongsheng will be delayed for five to nine months.
