The net income adjusted for certain non-cash items was $4.2 mill during the quarter.
The company also reported spot average daily TCEs for VLCCs, Suezmaxes and LR2/Aframaxes in the second quarter were $25,600, $16,200 and $18,100, respectively.
For the third quarter, Frontline estimated spot TCE of $28,000 contracted for 83% of vessel days for VLCCs.
In May and June, 2019, the company entered into agreements to purchase a Suezmax resale and a VLCC resale both under construction in South Korea and due to be delivered in May, 2020. In June, the company ordered two LR2 newbuildings from SWS, China, expected to be delivered in January and March, 2021.
In August, 2019, Frontline entered into a non-binding term sheet together with Trafigura Group and Golden Ocean Group to establish a joint venture for the supply of marine fuels.
The same month saw the company entered into a sale and purchase agreement with Trafigura Maritime Logistics (TML) to acquire 10 Suezmaxes built in 2019. Five vessels will be chartered back to Trafigura on three-year timecharters at a daily rate of $28,400 with a 50% profit share above the base rate.
Robert Hvide Macleod, Frontline Management CEO, commented: “Frontline is well positioned as we approach what we believe is an important inflection point in the tanker market. The increase in US crude oil production is driving tonne/miles, refineries are coming back from maintenance and the impact of the IMO2020 is expected to be positive.
“We believe the tanker market dynamics present a compelling opportunity across multiple time frames. Our recent agreement to acquire 10 Suezmax tankers, done with the support of our largest shareholder, increases our earnings potential significantly at what we believe is an ideal time.
“Frontline is well positioned ahead of the IMO2020 implementation date with an average fleet age below four years, significant exposure to favourable scrubber economics, and the ability to source various fuel types on a timely and competitive basis through our fuel joint venture with Trafigura Group,” he said.
Inger Klemp, Frontline Management CFO, added:“Frontline is unique in its ability to access capital from a variety of sources on attractive terms. Our strong standing with institutional lenders, combined with the financial support of our largest shareholder, allow us to react quickly to market changes and growth opportunities. We will continue to consistently focus on maintaining our competitive break even levels to ensure we are well positioned to generate significant cash flow and create value for our shareholders.”
The estimated average daily cash break-even rates are $24,500 for VLCCs, $21,300 for Suezmaxes and $16,200 for LR2s, the company said.