FRONTLINE PLC
(registrant)
| ||||
Dated: June 1, 2023
|
By:
|
/s/ Inger M. Klemp
| ||
Name: Inger M. Klemp
| ||||
Title: Principal Financial Officer
| ||||
• |
Highest first quarter profit since 2008 of $199.6 million, or $0.90 per basic and diluted share for the first quarter of 2023.
|
• |
Adjusted profit of $193.3 million, or $0.87 per basic and diluted share for the first quarter of 2023.
|
• |
Declared a cash dividend of $0.70 per share for the first quarter of 2023.
|
• |
Reported revenues of $497.3 million for the first quarter of 2023.
|
• |
Reported spot TCEs for VLCCs, Suezmax tankers and LR2/Aframax tankers in the first quarter of 2023 were $52,500, $64,000 and $56,300 per day, respectively.
|
• |
For the second quarter of 2023, we estimate spot TCE on a load-to-discharge basis of $75,000 contracted for 78% of vessel days for VLCCs, $65,000 contracted for 71% of vessel days for Suezmax tankers and $65,700 contracted for 63% of vessel days for LR2/Aframax tankers.
|
• |
Sold the 2010-built Suezmax tanker, Front Njord in May 2023, for aggregate gross proceeds of $44.5 million. After repayment of existing debt on the vessel, the transaction is expected to generate net cash proceeds of approximately $28.2 million.
|
• |
Entered into two fixed rate time charter-out contracts in April 2023 and May 2023 for two LR2/Aframax tankers to third parties on two-year time charters, both at a daily base rate of $46,500.
|
• |
Entered into a senior secured term loan facility in May 2023 for a total amount of up to $129.4 million at attractive terms to refinance an existing term loan facility maturing in August 2023.
|
($ per day)
|
Spot TCE
|
Spot TCE estimates
|
% Covered
|
Estimated average
daily cash
breakeven rates
| ||
Q1 2023
|
Q4 2022
|
2022
|
Q2 2023
|
2023
| ||
VLCC
|
52,500
|
63,200
|
31,300
|
75,000
|
78%
|
26,500
|
Suezmax
|
64,000
|
57,900
|
37,100
|
65,000
|
71%
|
22,700
|
LR2 / Aframax
|
56,300
|
58,800
|
38,500
|
65,700
|
63%
|
16,800
|
CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
(in thousands of $, except per share data)
|
2023
Jan-Mar
|
2022
Jan-Mar
|
2022
Jan-Dec
|
Revenues
|
497,332
|
217,441
|
1,430,208
|
Other income
|
14,289
|
5,381
|
8,040
|
Total operating revenues and other income
|
511,621
|
222,822
|
1,438,248
|
Voyage expenses and commission
|
158,827
|
113,651
|
605,544
|
Ship operating expenses
|
43,718
|
41,132
|
175,164
|
Administrative expenses
|
12,638
|
6,898
|
47,374
|
Depreciation
|
55,546
|
40,945
|
165,170
|
Contingent rental income
|
-
|
(551)
|
(623)
|
Total operating expenses
|
270,729
|
202,075
|
992,629
|
Net operating income
|
240,892
|
20,747
|
445,619
|
Finance income
|
2,873
|
58
|
1,479
|
Finance expense
|
(45,417)
|
7,927
|
(45,330)
|
Gain (loss) on marketable securities
|
(3,173)
|
269
|
58,359
|
Share of results of associated company
|
3,738
|
(92)
|
14,243
|
Dividends received
|
527
|
46
|
1,579
|
Profit before income taxes
|
199,440
|
28,955
|
475,949
|
Income tax benefit (expense)
|
186
|
13
|
(412)
|
Profit for the period
|
199,626
|
28,968
|
475,537
|
Basic and diluted earnings per share
|
$0.90
|
$0.14
|
$2.22
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands of $)
|
2023
Jan-Mar
|
2022
Jan-Mar
|
2022
Jan-Dec
|
Profit for the period
|
199,626
|
28,968
|
475,537
|
Items that may be reclassified to profit or loss:
| |||
Foreign currency exchange gain (loss)
|
53
|
(1)
|
226
|
Other comprehensive income (loss)
|
53
|
(1)
|
226
|
Comprehensive income
|
199,679
|
28,967
|
475,763
|
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in thousands of $)
|
Mar 31
2023
|
Dec 31
2022
|
ASSETS
| ||
Current assets
| ||
Cash and cash equivalents
|
225,361
|
254,525
|
Marketable securities
|
233,108
|
236,281
|
Other current assets
|
375,003
|
390,244
|
Total current assets
|
833,472
|
881,050
|
Non-current assets
| ||
Newbuildings
|
-
|
47,991
|
Vessels and equipment
|
3,708,885
|
3,650,652
|
Right-of-use assets
|
2,892
|
3,108
|
Goodwill
|
112,452
|
112,452
|
Investment in associated company
|
12,742
|
16,302
|
Loan notes receivable
|
-
|
1,388
|
Other non-current assets
|
48,746
|
55,500
|
Total non-current assets
|
3,885,717
|
3,887,393
|
Total assets
|
4,719,189
|
4,768,443
|
LIABILITIES AND EQUITY
| ||
Current liabilities
| ||
Short-term debt and current portion of long-term debt
|
365,233
|
277,854
|
Current portion of obligations under leases
|
1,052
|
1,024
|
Other current payables
|
108,680
|
112,781
|
Total current liabilities
|
474,965
|
391,659
|
Non-current liabilities
| ||
Long-term debt
|
2,017,392
|
2,112,460
|
Obligations under leases
|
2,140
|
2,372
|
Other non-current payables
|
3,320
|
2,053
|
Total non-current liabilities
|
2,022,852
|
2,116,885
|
Equity
| ||
Frontline plc equity
|
2,221,844
|
2,260,371
|
Non-controlling interest
|
(472)
|
(472)
|
Total equity
|
2,221,372
|
2,259,899
|
Total liabilities and equity
|
4,719,189
|
4,768,443
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of $)
|
2023
Jan-Mar
|
2022
Jan-Mar
|
2022
Jan-Dec
| ||||
OPERATING ACTIVITIES
| |||||||
Profit for the period
|
199,626
|
28,968
|
475,537
| ||||
Adjustments to reconcile profit to net cash provided by operating activities:
| |||||||
Net finance expense (income)
|
42,544
|
(7,985
|
)
|
43,851
| |||
Depreciation
|
55,546
|
40,945
|
165,170
| ||||
Gain on sale of vessels and equipment
|
(12,709
|
)
|
(4,618
|
)
|
(4,596
|
)
| |
(Gain) loss on marketable securities
|
3,173
|
(269
|
)
|
(58,359
|
)
| ||
Share of results of associated company
|
(3,738
|
)
|
92
|
(14,243
|
)
| ||
Other, net
|
3,387
|
(1,352
|
)
|
2,376
| |||
Change in operating assets and liabilities
|
7,116
|
(19,194
|
)
|
(142,112
|
)
| ||
Debt issuance costs paid
|
(27
|
)
|
(186
|
)
|
(4,349
|
)
| |
Interest paid
|
(40,039
|
)
|
(16,505
|
)
|
(83,039
|
)
| |
Interest received
|
7,837
|
47
|
5,094
| ||||
Net cash provided by operating activities
|
262,716
|
19,943
|
385,330
| ||||
INVESTING ACTIVITIES
| |||||||
Additions to newbuildings, vessels and equipment
|
(150,714
|
)
|
(13,734
|
)
|
(335,815
|
)
| |
Proceeds from sale of vessels
|
99,130
|
80,000
|
80,000
| ||||
Investment in associated company
|
-
|
-
|
(1,505
|
)
| |||
Cash inflows from associated company
|
8,686
|
-
|
-
| ||||
Net cash provided by (used in) investing activities
|
(42,898
|
)
|
66,266
|
(257,320
|
)
| ||
FINANCING ACTIVITIES
| |||||||
Proceeds from issuance of debt
|
130,000
|
-
|
651,248
| ||||
Repayment of debt
|
(140,572
|
)
|
(86,755
|
)
|
(597,834
|
)
| |
Repayment of obligations under leases
|
(204
|
)
|
(1,351
|
)
|
(2,123
|
)
| |
Lease termination payments
|
-
|
-
|
(4,456
|
)
| |||
Dividends paid
|
(238,206
|
)
|
-
|
(33,393
|
)
| ||
Net cash provided by (used in) financing activities
|
(248,982
|
)
|
(88,106
|
)
|
13,442
| ||
Net change in cash and cash equivalents
|
(29,164
|
)
|
(1,897
|
)
|
141,452
| ||
Cash and cash equivalents at start of period
|
254,525
|
113,073
|
113,073
| ||||
Cash and cash equivalents at end of period
|
225,361
|
111,176
|
254,525
|
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(in thousands of $ except number of shares)
|
2023
Jan-Mar
|
2022
Jan-Mar
|
2022
Jan-Dec
| |||
NUMBER OF SHARES OUTSTANDING
| ||||||
Balance at beginning of period
|
222,622,889
|
203,530,979
|
203,530,979
| |||
Shares issued in connection with Euronav share acquisition
|
-
|
-
|
19,091,910
| |||
Balance at end of period
|
222,622,889
|
203,530,979
|
222,622,889
| |||
SHARE CAPITAL
| ||||||
Balance at beginning of period
|
222,623
|
203,531
|
203,531
| |||
Shares issued in connection with Euronav share acquisition
|
-
|
-
|
19,092
| |||
Balance at end of period
|
222,623
|
203,531
|
222,623
| |||
ADDITIONAL PAID IN CAPITAL
| ||||||
Balance at beginning of period
|
604,687
|
448,291
|
448,291
| |||
Shares issued in connection with Euronav share acquisition
|
-
|
-
|
156,396
| |||
Balance at end of period
|
604,687
|
448,291
|
604,687
| |||
CONTRIBUTED SURPLUS
| ||||||
Balance at beginning of period
|
1,004,094
|
1,004,094
|
1,004,094
| |||
Balance at end of period
|
1,004,094
|
1,004,094
|
1,004,094
| |||
ACCUMULATED OTHER RESERVES
| ||||||
Balance at beginning of period
|
454
|
228
|
228
| |||
Other comprehensive income
|
53
|
(1
|
)
|
226
| ||
Balance at end of period
|
507
|
227
|
454
| |||
RETAINED EARNINGS (DEFICIT)
| ||||||
Balance at beginning of period
|
428,513
|
(13,631
|
)
|
(13,631
|
)
| |
Profit for the period
|
199,626
|
28,968
|
475,537
| |||
Cash dividends
|
(238,206
|
)
|
-
|
(33,393
|
)
| |
Balance at end of period
|
389,933
|
15,337
|
428,513
| |||
EQUITY ATTRIBUTABLE TO THE COMPANY
|
2,221,844
|
1,671,480
|
2,260,371
| |||
NON-CONTROLLING INTEREST
| ||||||
Balance at beginning of period
|
(472
|
)
|
(472
|
)
|
(472
|
)
|
Balance at end of period
|
(472
|
)
|
(472
|
)
|
(472
|
)
|
TOTAL EQUITY
|
2,221,372
|
1,671,008
|
2,259,899
|
(in thousands of $)
|
2023
Jan-Mar
|
2022
Jan-Mar
|
2022
Jan-Dec
|
Profit for the period
|
199,626
|
28,968
|
475,537
|
(in thousands)
| |||
Weighted average number of ordinary shares
|
222,623
|
203,531
|
214,011
|
Denominator for diluted earnings per share
|
222,623
|
203,531
|
214,011
|
(in thousands of $)
|
Q1 2023
|
FY 2022
|
Q4 2022
|
Q1 2022
| ||||
Adjusted profit (loss)
| ||||||||
Profit
|
199,626
|
475,537
|
239,054
|
28,968
| ||||
Add back:
| ||||||||
Loss on marketable securities
|
3,173
|
12,005
|
-
|
-
| ||||
Share of losses of associated companies
|
-
|
92
|
-
|
92
| ||||
Unrealized loss on derivatives (1)
|
7,364
|
1,116
|
1,116
|
-
| ||||
Loss on termination of leases
|
-
|
431
|
-
|
-
| ||||
Less:
| ||||||||
Unrealized gain on derivatives (1)
|
-
|
(51,108
|
)
|
-
|
(26,134
|
)
| ||
Gain on marketable securities
|
-
|
(70,364
|
)
|
(23,023
|
)
|
(269
|
)
| |
Share of results of associated companies
|
(3,738
|
)
|
(14,335
|
)
|
(2,632
|
)
|
-
| |
Amortization of acquired time charters
|
-
|
(2,806
|
)
|
-
|
(1,244
|
)
| ||
Gain on sale of vessels
|
(12,709
|
)
|
(4,618
|
)
|
-
|
(4,618
|
)
| |
Gain on settlement of insurance and other claims
|
(397
|
)
|
(3,998
|
)
|
-
|
(362
|
)
| |
Adjusted profit (loss)
|
193,319
|
341,952
|
214,515
|
(3,567
|
)
| |||
(in thousands)
| ||||||||
Weighted average number of ordinary shares
|
222,623
|
214,011
|
222,623
|
203,531
| ||||
Denominator for diluted earnings (loss) per share
|
222,623
|
214,011
|
222,623
|
203,531
| ||||
(in $)
| ||||||||
Basic earnings (loss) per share
|
0.90
|
2.22
|
1.07
|
0.14
| ||||
Adjusted basic earnings (loss) per share
|
0.87
|
1.60
|
0.96
|
(0.02
|
)
| |||
Diluted earnings (loss) per share
|
0.90
|
2.22
|
1.07
|
0.14
| ||||
Adjusted diluted earnings (loss) per share
|
0.87
|
1.60
|
0.96
|
(0.02
|
)
|
(in thousands of $)
|
Q1 2023
|
FY 2022
|
Q4 2022
|
Q1 2022
| ||||
Unrealized gain (loss) on derivatives
|
(7,364
|
)
|
49,992
|
(1,116
|
)
|
26,134
| ||
Interest income (expense) on derivatives
|
4,964
|
3,631
|
3,697
|
(1,213
|
)
| |||
Gain (loss) on derivatives
|
(2,400
|
)
|
53,623
|
2,581
|
24,921
|
(in thousands of $)
|
Q1 2023
|
FY 2022
|
Q4 2022
|
Q1 2022
| |||||
Revenues
|
497,332
|
1,430,208
|
530,141
|
217,441
| |||||
less
| |||||||||
Voyage expenses and commission
|
(158,827
|
)
|
(605,544
|
)
|
(177,295
|
)
|
(113,651
|
)
| |
Other non-vessel items
|
(1,155
|
)
|
(12,254
|
)
|
(1,197
|
)
|
(1,897
|
)
| |
Total TCE
|
337,350
|
812,410
|
351,649
|
101,893
|
Q1 2023
|
FY 2022
|
Q4 2022
|
Q1 2022
| |||||
Time charter TCE (in thousands of $)
| ||||||||
VLCC
|
-
|
-
|
-
|
-
| ||||
Suezmax
|
-
|
42,078
|
613
|
12,624
| ||||
LR2
|
5,802
|
7,921
|
5,984
|
-
| ||||
Total Time charter TCE
|
5,802
|
49,999
|
6,597
|
12,624
| ||||
Spot TCE (in thousands of $)
| ||||||||
VLCC
|
100,245
|
211,938
|
118,110
|
25,027
| ||||
Suezmax
|
152,564
|
313,981
|
142,630
|
33,276
| ||||
LR2
|
78,739
|
236,492
|
84,312
|
30,966
| ||||
Total Spot TCE
|
331,548
|
762,411
|
345,052
|
89,269
| ||||
Total TCE
|
337,350
|
812,410
|
351,649
|
101,893
| ||||
Spot days (available days less offhire days)
| ||||||||
VLCC
|
1,909
|
6,775
|
1,870
|
1,595
| ||||
Suezmax
|
2,384
|
8,464
|
2,462
|
1,971
| ||||
LR2
|
1,398
|
6,139
|
1,433
|
1,627
| ||||
Spot TCE per day (in $ per day)
| ||||||||
VLCC
|
52,500
|
31,300
|
63,200
|
15,700
| ||||
Suezmax
|
64,000
|
37,100
|
57,900
|
16,900
| ||||
LR2
|
56,300
|
38,500
|
58,800
|
19,000
|
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Disclaimer
Frontline plc published this content on 01 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 June 2023 20:36:09 UTC.