FRONTLINE PLC
(registrant)
| |||
Dated: March 1, 2023
|
By:
|
/s/ Inger M. Klemp
| |
Name: Inger M. Klemp
| |||
Title: Principal Financial Officer
| |||
•
|
Highest quarterly net income since the second quarter of 2008 of $240.0 million, or $1.08 per basic and diluted share for the fourth quarter of 2022.
|
•
|
Adjusted net income of $215.5 million, or $0.97 per basic and diluted share for the fourth quarter of 2022.
|
•
|
Declared a cash dividend of $0.30 per share for the third quarter of 2022 and a cash dividend of $0.77 per share for the fourth quarter of 2022.
|
•
|
Reported total operating revenues of $530.1 million for the fourth quarter of 2022.
|
•
|
Reported spot TCEs for VLCCs, Suezmax tankers and LR2/Aframax tankers in the fourth quarter of 2022 were
|
•
|
For the first quarter of 2023, we estimate spot TCE on a load-to-discharge basis of $58,300 contracted for 87% of vessel days for VLCCs, $72,400 contracted for 77% of vessel days for Suezmax tankers and $63,900 contracted for 68% of vessel days for LR2/Aframax tankers.
|
•
|
Sold the 2009-built VLCC, Front Eminence, and the 2009-built Suezmax tanker, Front Balder, for aggregate gross proceeds of approximately $100.5 million. After repayment of existing debt on the vessels, the transactions are expected to generate net cash proceeds of approximately $63.8 million.
|
•
|
Took delivery of the three remaining VLCC newbuildings from Hyundai Heavy Industries ("HHI"): Front Gaula in October 2022, and Front Orkla and Front Tyne in January 2023.
|
•
|
Terminated the Combination Agreement with Euronav on January 9, 2023 and received from Euronav an emergency arbitration request for urgent interim and conservatory measures on January 17, 2023, which was fully dismissed by the Emergency Arbitrator on February 7, 2023.
|
•
|
Received from Euronav an arbitration request for proceedings on the merits of the termination on January 28, 2023.
|
•
|
Repaid $60.0 million of its $275.0 million senior unsecured revolving credit facility in February 2023.
|
($ per day)
|
Spot TCE
|
Spot TCE estimates
|
% Covered
|
Estimated average
daily cash
breakeven
rates
| |||||
2022
|
Q4 2022
|
Q3 2022
|
Q2 2022
|
Q1 2022
|
2021
|
Q1 2023
|
2023
| ||
VLCC
|
31,300
|
63,200
|
25,000
|
16,400
|
15,700
|
15,300
|
58,300
|
87%
|
27,000
|
Suezmax
|
37,100
|
57,900
|
41,100
|
26,500
|
16,900
|
12,000
|
72,400
|
77%
|
21,500
|
LR2 / Aframax
|
38,500
|
58,800
|
40,200
|
38,600
|
19,000
|
11,800
|
63,900
|
68%
|
17,600
|
(i)
|
66 vessels owned by the Company (21 VLCCs, 27 Suezmax tankers, 18 LR2/Aframax tankers);
|
(ii)
|
four vessels that are under the Company's commercial management (two Suezmax tankers and two Aframax tankers)
|
2021
Oct-Dec
|
2022
Oct-Dec
|
CONDENSED CONSOLIDATED INCOME STATEMENT
(in thousands of $, except per share data)
|
2022
Jan-Dec
|
2021
Jan-Dec
| |||||||||||
213,546
|
530,141
|
Total operating revenues
|
1,430,208
|
749,381
| |||||||||||
4,482
|
451
|
Other operating gain
|
9,477
|
5,893
| |||||||||||
112,890
|
177,295
|
Voyage expenses and commission
|
605,544
|
392,697
| |||||||||||
(991
|
)
|
-
|
Contingent rental income
|
(623
|
)
|
(3,606
|
)
| ||||||||
41,902
|
49,482
|
Ship operating expenses
|
193,014
|
175,607
| |||||||||||
102
|
-
|
Charter hire expenses
|
-
|
2,695
| |||||||||||
7,107
|
18,393
|
Administrative expenses
|
48,300
|
27,891
| |||||||||||
38,586
|
39,034
|
Depreciation
|
150,650
|
147,774
| |||||||||||
199,596
|
284,204
|
Total operating expenses
|
996,885
|
743,058
| |||||||||||
18,432
|
246,388
|
Net operating income
|
442,800
|
12,216
| |||||||||||
10
|
1,077
|
Interest income
|
1,463
|
119
| |||||||||||
(16,801
|
)
|
(35,857
|
)
|
Interest expense
|
(98,712
|
)
|
(61,435
|
)
| |||||||
(457
|
)
|
23,023
|
Gain (loss) on marketable securities
|
58,359
|
7,677
| ||||||||||
-
|
2,632
|
Share of results of associated company
|
14,243
|
(724
|
)
| ||||||||||
85
|
20
|
Foreign currency exchange gain (loss)
|
16
|
(116
|
)
| ||||||||||
5,305
|
2,581
|
Gain on derivatives
|
53,623
|
17,509
| |||||||||||
17,866
|
372
|
Other non-operating items
|
1,338
|
18,239
| |||||||||||
24,440
|
240,236
|
Net income (loss) before income taxes
|
473,130
|
(6,515
|
)
| ||||||||||
(4,657
|
)
|
(202
|
)
|
Income tax expense
|
(412
|
)
|
(4,633
|
)
| |||||||
19,783
|
240,034
|
Net income (loss)
|
472,718
|
(11,148
|
)
| ||||||||||
$0.10
|
$1.08
|
Basic earnings (loss) per share
|
$2.21
|
$(0.06
|
)
| ||||||||||
$0.10
|
$1.08
|
Diluted earnings (loss) per share
|
$2.21
|
$(0.06
|
)
| ||||||||||
2021
Oct-Dec
|
2022
Oct-Dec
|
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(in thousands of $)
|
2022
Jan-Dec
|
2021
Jan-Dec
| |||||||||||
19,783
|
240,034
|
Net income (loss)
|
472,718
|
(11,148
|
)
| ||||||||||
86
|
(42
|
)
|
Foreign currency exchange gain (loss)
|
226
|
28
| ||||||||||
86
|
(42
|
)
|
Other comprehensive income (loss)
|
226
|
28
| ||||||||||
19,869
|
239,992
|
Comprehensive income (loss)
|
472,944
|
(11,120
|
)
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
Dec 31
2022
|
Dec 31
2021
| ||||||
ASSETS
| ||||||||
Current assets
| ||||||||
Cash and cash equivalents
|
254,525
|
113,073
| ||||||
Marketable securities
|
236,281
|
2,435
| ||||||
Other current assets
|
390,244
|
217,237
| ||||||
Total current assets
|
881,050
|
332,745
| ||||||
Non-current assets
| ||||||||
Newbuildings
|
47,991
|
130,633
| ||||||
Vessels and equipment, net
|
3,658,334
|
3,477,801
| ||||||
Vessels under finance lease, net
|
-
|
44,880
| ||||||
Right of use assets under operating leases
|
3,108
|
3,914
| ||||||
Goodwill
|
112,452
|
112,452
| ||||||
Investment in associated company
|
16,302
|
555
| ||||||
Loan notes receivable
|
1,388
|
1,388
| ||||||
Other long-term assets
|
55,500
|
12,730
| ||||||
Total non-current assets
|
3,895,075
|
3,784,353
| ||||||
Total assets
|
4,776,125
|
4,117,098
| ||||||
LIABILITIES AND EQUITY
| ||||||||
Current liabilities
| ||||||||
Short-term debt and current portion of long-term debt
|
258,355
|
189,286
| ||||||
Current portion of obligations under finance lease
|
-
|
7,601
| ||||||
Current portion of obligations under operating lease
|
1,024
|
1,122
| ||||||
Other current liabilities
|
132,280
|
94,666
| ||||||
Total current liabilities
|
391,659
|
292,675
| ||||||
Non-current liabilities
| ||||||||
Long-term debt
|
2,112,460
|
2,126,910
| ||||||
Obligations under finance lease
|
-
|
40,865
| ||||||
Obligations under operating lease
|
2,372
|
3,114
| ||||||
Other long-term liabilities
|
2,053
|
992
| ||||||
Total non-current liabilities
|
2,116,885
|
2,171,881
| ||||||
Commitments and contingencies
| ||||||||
Equity
| ||||||||
Frontline plc equity
|
2,268,053
|
1,653,014
| ||||||
Non-controlling interest
|
(472
|
)
|
(472
|
)
| ||||
Total equity
|
2,267,581
|
1,652,542
| ||||||
Total liabilities and equity
|
4,776,125
|
4,117,098
|
2021
Oct-Dec
|
2022
Oct-Dec
|
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands of $)
|
2022
Jan-Dec
|
2021
Jan-Dec
| |||||||||||
OPERATING ACTIVITIES
| |||||||||||||||
19,783
|
240,034
|
Net income (loss)
|
472,718
|
(11,148
|
)
| ||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
| |||||||||||||||
40,055
|
40,492
|
Depreciation and amortization of deferred charges
|
156,203
|
152,981
| |||||||||||
(5,058
|
)
|
22
|
Gain on sale of vessels and equipment
|
(6,033
|
)
|
(5,058
|
)
| ||||||||
-
|
-
|
Loss on finance lease termination
|
431
|
-
| |||||||||||
(1,272
|
)
|
-
|
Amortization of acquired time charters
|
(2,806
|
)
|
(5,045
|
)
| ||||||||
(992
|
)
|
-
|
Contingent rental (income) expense
|
(624
|
)
|
(3,607
|
)
| ||||||||
457
|
(23,023
|
)
|
(Gain) loss on marketable securities
|
(58,359
|
)
|
(7,677
|
)
| ||||||||
-
|
(2,632
|
)
|
Share of results of associated company
|
(14,243
|
)
|
724
| |||||||||
(6,730
|
)
|
1,116
|
Unrealized (Gain) loss on derivatives
|
(49,992
|
)
|
(23,262
|
)
| ||||||||
338
|
3,396
|
Other, net
|
5,600
|
432
| |||||||||||
(21,343
|
)
|
(39,653
|
)
|
Change in operating assets and liabilities
|
(132,000
|
)
|
(35,408
|
)
| |||||||
25,238
|
219,752
|
Net cash provided by operating activities
|
370,895
|
62,932
| |||||||||||
INVESTING ACTIVITIES
| |||||||||||||||
(225,570
|
)
|
(79,254
|
)
|
Additions to newbuildings, vessels and equipment
|
(317,965
|
)
|
(462,400
|
)
| |||||||
80,000
|
-
|
Proceeds from sale of vessels and equipment
|
80,000
|
80,000
| |||||||||||
-
|
-
|
Investment in associated company
|
(1,505
|
)
|
-
| ||||||||||
2,812
|
-
|
Net cash inflow on sale of subsidiary
|
-
|
5,625
| |||||||||||
-
|
-
|
Marketable securities acquired
|
-
|
(357
|
)
| ||||||||||
-
|
-
|
Proceeds from sale of marketable securities
|
-
|
14,074
| |||||||||||
(142,758
|
)
|
(79,254
|
)
|
Net cash used in investing activities
|
(239,470
|
)
|
(363,058
|
)
| |||||||
FINANCING ACTIVITIES
| |||||||||||||||
150,422
|
99,815
|
Proceeds from debt
|
651,248
|
403,868
| |||||||||||
(87,708
|
)
|
(79,280
|
)
|
Repayment of debt
|
(597,826
|
)
|
(219,521
|
)
| |||||||
(1,016
|
)
|
-
|
Repayment of finance leases
|
(1,197
|
)
|
(5,194
|
)
| ||||||||
51,763
|
-
|
Net proceeds from issuance of shares
|
-
|
52,447
| |||||||||||
-
|
-
|
Finance lease termination payments
|
(4,456
|
)
|
-
| ||||||||||
(4,925
|
)
|
(471
|
)
|
Debt fees paid
|
(4,349
|
)
|
(8,050
|
)
| |||||||
-
|
(33,393
|
)
|
Dividends paid
|
(33,393
|
)
|
-
| |||||||||
108,536
|
(13,329
|
)
|
Net cash provided by (used in) financing activities
|
10,027
|
223,550
| ||||||||||
(8,984
|
)
|
127,169
|
Net change in cash and cash equivalents and restricted cash
|
141,452
|
(76,576
|
)
| |||||||||
122,057
|
127,356
|
Cash and cash equivalents and restricted cash at start of period
|
113,073
|
189,649
| |||||||||||
113,073
|
254,525
|
Cash and cash equivalents and restricted cash at end of period
|
254,525
|
113,073
|
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
|
2022
Jan-Dec
|
2021
Jan-Dec
| ||||||
NUMBER OF SHARES OUTSTANDING
| ||||||||
Balance at beginning of period
|
203,530,979
|
197,692,321
| ||||||
Shares issued
|
19,091,910
|
5,838,658
| ||||||
Balance at end of period
|
222,622,889
|
203,530,979
| ||||||
SHARE CAPITAL
| ||||||||
Balance at beginning of period
|
203,531
|
197,692
| ||||||
Shares issued
|
19,092
|
5,839
| ||||||
Balance at end of period
|
222,623
|
203,531
| ||||||
ADDITIONAL PAID IN CAPITAL
| ||||||||
Balance at beginning of period
|
448,291
|
402,021
| ||||||
Stock compensation expense
|
-
|
(338
|
)
| |||||
Shares issued
|
156,396
|
-
| ||||||
Balance at end of period
|
604,687
|
448,291
| ||||||
CONTRIBUTED SURPLUS
|
1,004,094
|
1,004,094
| ||||||
Balance at beginning of period
| ||||||||
Balance at end of period
|
1,004,094
|
1,004,094
| ||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME
| ||||||||
Balance at beginning of period
|
228
|
200
| ||||||
Other comprehensive income
|
226
|
28
| ||||||
Balance at end of period
|
454
|
228
| ||||||
RETAINED EARNINGS (DEFICIT)
| ||||||||
Balance at beginning of period
|
(3,130
|
)
|
8,018
| |||||
Net income (loss)
|
472,718
|
(11,148
|
)
| |||||
Cash dividends
|
(33,393
|
)
|
-
| |||||
Balance at end of period
|
436,195
|
(3,130
|
)
| |||||
EQUITY ATTRIBUTABLE TO THE COMPANY
|
2,268,053
|
1,653,014
| ||||||
NON-CONTROLLING INTEREST
|
(472
|
)
|
(472
|
)
| ||||
Balance at beginning of period
| ||||||||
Balance at end of period
|
(472
|
)
|
(472
|
)
| ||||
TOTAL EQUITY
|
2,267,581
|
1,652,542
|
1.
|
GENERAL
|
2.
|
ACCOUNTING POLICIES
|
3.
|
EARNINGS PER SHARE
|
(in thousands of $)
|
2022
Jan-Dec
|
2021
Jan-Dec
|
Net income (loss)
|
472,718
|
(11,148)
|
(in thousands)
| ||
Weighted average number of ordinary shares
|
214,011
|
198,965
|
Denominator for diluted earnings per share
|
214,011
|
198,965
|
4.
|
OTHER OPERATING GAINS
|
5.
|
NEWBUILDINGS
|
6.
|
DEBT
|
7.
|
MARKETABLE SECURITIES
|
8.
|
RELATED PARTY TRANSACTIONS
|
9.
|
COMMITMENTS AND CONTINGENCIES
|
10.
|
SUBSEQUENT EVENTS
|
(in thousands of $)
|
YTD 2022
|
Q4 2022
|
Q3 2022
|
Q2 2022
|
Q1 2022
|
FY 2021
| ||||||||||||||||||
Adjusted net income (loss)
| ||||||||||||||||||||||||
Net income (loss)
|
472,718
|
240,034
|
154,439
|
47,097
|
31,148
|
(11,148
|
)
| |||||||||||||||||
Add back:
| ||||||||||||||||||||||||
Loss on marketable securities
|
12,005
|
-
|
-
|
12,005
|
-
|
457
| ||||||||||||||||||
Share of losses of associated companies
|
92
|
-
|
-
|
-
|
92
|
789
| ||||||||||||||||||
Unrealized loss on derivatives (1)
|
1,116
|
1,116
|
-
|
-
|
-
|
3,282
| ||||||||||||||||||
Tax expense on received dividends
|
-
|
-
|
-
|
-
|
-
|
4,455
| ||||||||||||||||||
Loss on termination of leases
|
431
|
-
|
-
|
431
|
-
|
-
| ||||||||||||||||||
Less:
| ||||||||||||||||||||||||
Unrealized gain on derivatives (1)
|
(51,108
|
)
|
-
|
(15,757
|
)
|
(9,217
|
)
|
(26,134
|
)
|
(26,544
|
)
| |||||||||||||
Gain on marketable securities
|
(70,364
|
)
|
(23,023
|
)
|
(47,072
|
)
|
-
|
(269
|
)
|
(4,134
|
)
| |||||||||||||
Share of results of associated companies
|
(14,335
|
)
|
(2,632
|
)
|
(5,652
|
)
|
(6,051
|
)
|
-
|
(65
|
)
| |||||||||||||
Amortization of acquired time charters
|
(2,806
|
)
|
-
|
(304
|
)
|
(1,258
|
)
|
(1,244
|
)
|
(5,045
|
)
| |||||||||||||
Gain on sale of vessels
|
(6,055
|
)
|
-
|
-
|
-
|
(6,055
|
)
|
(5,058
|
)
| |||||||||||||||
Dividends received
|
-
|
-
|
-
|
-
|
-
|
(17,819
|
)
| |||||||||||||||||
Gain on settlement of insurance and other claims
|
(3,998
|
)
|
-
|
(2,796
|
)
|
(840
|
)
|
(362
|
)
|
-
| ||||||||||||||
Adjusted net income (loss)
|
337,696
|
215,495
|
82,858
|
42,167
|
(2,824
|
)
|
(60,830
|
)
| ||||||||||||||||
(in thousands)
| ||||||||||||||||||||||||
Weighted average number of ordinary shares
|
214,011
|
222,623
|
222,623
|
206,965
|
203,531
|
198,965
| ||||||||||||||||||
Denominator for diluted earnings (loss) per share
|
214,011
|
222,623
|
222,623
|
206,965
|
203,531
|
198,965
| ||||||||||||||||||
(in $)
| ||||||||||||||||||||||||
Basic earnings (loss) per share
|
2.21
|
1.08
|
0.69
|
0.23
|
0.15
|
(0.06
|
)
| |||||||||||||||||
Adjusted basic earnings (loss) per share
|
1.58
|
0.97
|
0.37
|
0.20
|
(0.01
|
)
|
(0.31
|
)
| ||||||||||||||||
Diluted earnings (loss) per share
|
2.21
|
1.08
|
0.69
|
0.23
|
0.15
|
(0.06
|
)
| |||||||||||||||||
Adjusted diluted earnings (loss) per share
|
1.58
|
0.97
|
0.37
|
0.20
|
(0.01
|
)
|
(0.31
|
)
|
(in thousands of $)
|
YTD 2022
|
Q4 2022
|
Q3 2022
|
Q2 2022
|
Q1 2022
|
FY 2021
| ||||||||||||||||||
Unrealized gain (loss) on derivatives
|
49,992
|
(1,116
|
)
|
15,757
|
9,217
|
26,134
|
23,262
| |||||||||||||||||
Interest income (expense) on derivatives
|
3,631
|
3,697
|
1,487
|
(340
|
)
|
(1,213
|
)
|
(5,753
|
)
| |||||||||||||||
Gain on derivatives
|
53,623
|
2,581
|
17,244
|
8,877
|
24,921
|
17,509
|
(in thousands of $)
|
YTD 2022
|
Q4 2022
|
Q3 2022
|
Q2 2022
|
Q1 2022
|
FY 2021
| ||||||||||||||||||
Total operating revenues
|
1,430,208
|
530,141
|
382,186
|
300,440
|
217,441
|
749,381
| ||||||||||||||||||
less
| ||||||||||||||||||||||||
Voyage expenses and commission
|
(605,544
|
)
|
(177,295
|
)
|
(173,343
|
)
|
(141,255
|
)
|
(113,651
|
)
|
(392,697
|
)
| ||||||||||||
Other non-vessel items
|
(12,254
|
)
|
(1,197
|
)
|
(4,188
|
)
|
(4,972
|
)
|
(1,897
|
)
|
(19,551
|
)
| ||||||||||||
Total TCE
|
812,410
|
351,649
|
204,655
|
154,213
|
101,893
|
337,133
|
YTD 2022
|
Q4 2022
|
Q3 2022
|
Q2 2022
|
Q1 2022
|
FY 2021
| |||||||||||||||||||
Time charter TCE (in thousands of $)
| ||||||||||||||||||||||||
VLCC
|
-
|
-
|
-
|
-
|
-
|
8,235
| ||||||||||||||||||
Suezmax
|
42,078
|
613
|
11,535
|
17,306
|
12,624
|
51,810
| ||||||||||||||||||
LR2
|
7,921
|
5,984
|
1,937
|
-
|
-
|
3,230
| ||||||||||||||||||
Total Time charter TCE
|
49,999
|
6,597
|
13,472
|
17,306
|
12,624
|
63,275
| ||||||||||||||||||
Spot TCE (in thousands of $)
| ||||||||||||||||||||||||
VLCC
|
211,938
|
118,110
|
42,387
|
26,414
|
25,027
|
96,519
| ||||||||||||||||||
Suezmax
|
313,981
|
142,630
|
88,071
|
50,004
|
33,276
|
95,163
| ||||||||||||||||||
LR2
|
236,492
|
84,312
|
60,725
|
60,489
|
30,966
|
82,176
| ||||||||||||||||||
Total Spot TCE
|
762,411
|
345,052
|
191,183
|
136,907
|
89,269
|
273,858
| ||||||||||||||||||
Total TCE
|
812,410
|
351,649
|
204,655
|
154,213
|
101,893
|
337,133
| ||||||||||||||||||
Spot days (available days less offhire days)
| ||||||||||||||||||||||||
VLCC
|
6,775
|
1,870
|
1,698
|
1,612
|
1,595
|
6,305
| ||||||||||||||||||
Suezmax
|
8,464
|
2,462
|
2,141
|
1,890
|
1,971
|
7,901
| ||||||||||||||||||
LR2
|
6,139
|
1,433
|
1,512
|
1,567
|
1,627
|
6,944
| ||||||||||||||||||
Spot TCE per day (in $ per day)
| ||||||||||||||||||||||||
VLCC
|
31,300
|
63,200
|
25,000
|
16,400
|
15,700
|
15,300
| ||||||||||||||||||
Suezmax
|
37,100
|
57,900
|
41,100
|
26,500
|
16,900
|
12,000
| ||||||||||||||||||
LR2
|
38,500
|
58,800
|
40,200
|
38,600
|
19,000
|
11,800
|
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Frontline Ltd. published this content on 01 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 March 2023 23:46:50 UTC.