Spot average daily TCEs for VLCCs, Suezmaxes and LR2/Aframaxes were $35,700, $28,200 and $24,000, respectively during the quarter.
For the second quarter of this year, VLCC daily TCEs were estimated at $34,800 contracted for 63% of vessel days. However, Frontline said it expected spot TCEs for 2Q19 will be lower, primarily due to the impact of ballast days at the end of the quarter.
Robert Hvide Macleod, Frontline Management CEO, commented:"Following a strong start to the year, crude oil tanker rates weakened significantly in recent months, due to elevated levels of refinery maintenance, decrease in oil supply and a number of newbuildings delivering. However, a market improvement is expected in the second half of the year as refinery capacity returns and oil volumes return to the markets.
“In particular, market analysts expect incremental crude demand to be generated by upcoming IMO 2020 regulations, as increased inputs will be required to meet new demand for low sulfur fuels. Our commercial strategy, fleet renewal over recent years and the strong support from our largest shareholder creates significant leverage and opportunity in this exciting market dynamic," he said.
CFO Inger Klemp, added:"Following strong financial results in the first quarter of 2019, Frontline has remained focused on further strengthening its balance sheet. Based on market expectations and competitive breakeven levels, the company is well positioned to generate significant cash flow and create value for its shareholders."
On 28th February, 2019 the company disclosed that spot VLCC TCE of $41,300 per day had been contracted for 84% of vessel days.