The company also reported a net loss adjusted for certain non-cash items of $14.2 mill, plus a net income of $7.6 mill and net income adjusted for certain non-cash items of $13.6 mill for the six months ended 30th June, 2017.
During 2Q17, Frontline signed two senior secured term loan facilities of up to $110.5 mill provided by ING Bank and $110.5 mill provided by Credit Suisse, to partially finance four recent resales and newbuilding contracts.
The company also terminated three long term charters - the 1998-built Suezmax ‘Front Brabant’ and the 2000-built VLCC ‘Front Scilla’ in 2Q17 and the 1997-built Suezmax ‘Front Ardenne’ in 3Q17, ahead of the vessels' scheduled drydockings.
At the same time, Frontline took delivery of three Suezmaxes and two LR2/Aframax newbuildings.
Robert Hvide Macleod, Frontline Management CEO, commented: "The market has been decidedly weak since the start of the 2Q17, which is primarily the result of the increase in the size of the global crude oil tanker fleet. While the weak market naturally affects our earnings in the short term, the company's strategy is not altered. We continue to take proactive steps to increase the earnings potential of our fleet through the ongoing renewal of our fleet and by pursuing an opportunistic approach in the resale and newbuilding markets.
“Over the last several quarters, we have divested older, less economical VLCCs and Suezmaxes and have remained focused on acquiring high-quality, modern VLCCs at attractive prices, lowering the average age for our fleet from 8.1 years to 5.7 years.
“The upcoming quarters may present challenges as vessel supply continues to increase, but we are confident in our ability to continue to execute our strategy with the goal of returning value to shareholders. Given how both the ship values and spot market conditions have developed over the summer, we believe we are better positioned having not done any substantial acquisitions in the first half of the year. We expect attractive opportunities to emerge as a result of the weak market and will remain opportunistic going forward," he said.
Inger Klemp, CFO, added: "The financing of our current newbuilding programme is complete, following the signing of our senior secured loan facilities with ING and Credit Suisse. The terms of the financing support Frontline's low cash break-even levels. We are pleased that we continue to be able to access financing on attractive terms, and we believe this is directly related to the financial strength of our platform, as well as our strong relationships within the lending community."
The average daily TCEs earned by Frontline in 2Q17, were $23,800 for the VLCCs, $16,400 for the Suezmaxes and $18,100 for the LR2s, compared to $34,400, $23,400 and $22,400 for 1Q17, respectively.