Frontline has announced net income attributable to the company of US$15.5 million for the first quarter of 2011, equivalent to earnings per share of US$0.20, compared with a net loss of US$11.8 million for the fourth quarter of 2010.
Frontline said the increase was due to the gain on sale of assets and other non-operating items and improved result from operations. The net income in the first quarter included a gain on sale of assets and amortisation of deferred gains of US$13.2 million, which comprises a gain of US$7.9 million on the sale of the VLCC 'Front Shanghai' and a gain of US$5.3 million on the termination of the 'Ticen Sun' and 'Front Ace' charters.
The average daily time charter equivalents (TCEs) earned in the spot and period market in the first quarter by the company's VLCCs (including single hull VLCCs), Suezmax tankers and Suezmax OBO carriers were US$28,600, US$17,300 and US$36,300 respectively, compared with US$24,700, US$16,500, and US$45,100, respectively, in the preceding quarter. The spot earnings for Frontline's double hull VLCCs and Suezmax vessels were US$27,400 and US$16,000, respectively, in the first quarter compared with US$22,600 and US$15,200 in the fourth quarter.
The Gemini Suezmax pool had spot net earnings of US$17,700 per day in the first quarter compared with US$14,600 per day in the fourth quarter. The company's double hull VLCCs, excluding the spot index related time charter vessels, had spot earnings of US$28,200 per day in the first quarter compared with US$23,300 in the fourth quarter.
In January 2011, the chartered-in VLCC 'Desh Ujaala' was re-delivered to the owners and the company sold its 2006-built VLCC 'Front Shanghai'. The net sale proceeds for 'Front Shanghai' were US$91.24 million and after repayment of debt the sale generated US$31.5 million in cash.
As of March 31, 2011, Frontline's newbuilding programme comprised two Suezmax tankers and five VLCCs, which constitute a contractual cost of US$650 million.
{WISroYQ symbol='FRO'}
