Frontline Reports Profit in 3rd Quarter, with a Caveat

Frontline, the world's largest tanker company, reported a profit of $12.3 million for the third quarter but warns that it predicts weakness in the tanker sector to hurt its business during the fourth quarter.

Here are highlights of their third quarter report:

--Frontline reports net income attributable to the Company of $12.3 million and earnings per share of $0.16 for the third quarter of 2010.
--Frontline reports net income attributable to the Company of $173.3 million and earnings per share of $2.23 for the nine months ended September 30, 2010.
--Frontline announces a cash dividend of $0.25 per share for the third quarter of 2010.
--The fourth and final VLCC newbuildings from Shanghai Waigaoqiao Shipbuilding Co., Ltd., Front Signe and the fourth and final of the original series of Suezmax newbuildings from Jiangsu Rongsheng Heavy Industries Co., Ltd., Front Njord, were delivered in August 2010.
--In September 2010, Frontline entered into an agreement to time charter out two VLCCs; Front Eminence for a period of five years at a gross rate of $43,000 per day and Golden Victory for a period of three years at a gross rate of $40,000 per day.
--In September 2010, Frontline agreed with Zhoushan Jinhaiwan Shipyard Co., Ltd. to re-structure its VLCC newbuilding program resulting in a commitment to take delivery of five 320,000 dwt VLCC newbuildings with a total contract price of $525 million.
--In November 2010, Frontline extended the time-charter in agreements of Front Chief, Front Commander and Front Crown (all 1999-built double hull VLCCs); for one year from January 2011 at $26,500 per day per vessel.
--In November 2010, the Company secured pre- and post delivery financing in the amount of $147 million representing 70 percent of the contract price for the first two VLCCs to be delivered in 2012.

For more information, visit www.frontline.bm.