Adjusted for certain non-cash items, the net income was $26.3 mill for 4Q18.
The company reported that VLCC spot average daily TCE was $28,400 for the quarter, which was impacted significantly by a high number of ballast days towards the end of 4Q18, deferring revenue recognition into the first quarter of 2019.
Reported spot daily TCE for Suezmaxes and LR2/Aframaxes were $26,100 and $18,700, respectively for 4Q18.
Spot TCE of $41,300 contracted for 84% of vessel days for VLCCs, $33,300 contracted for 77% of vessel days for Suezmaxes and spot TCE of $26,100 contracted for 73% of vessel days for LR2/Aframaxes, were estimated for the first quarter of this year, including deferred revenue recognition from 4Q18.
In November 2018, Frontline extended the terms of its senior unsecured loan facility of up to $275 mill with an affiliate of Hemen Holding by 12 months to November, 2020.
In January, 2019, the company increased its ownership interest to 28.9% in Feen Marine Scrubbers (FMSI) and took delivery of the VLCC newbuilding ‘Front Defender’.
Robert Hvide Macleod, Frontline Management CEO, commented: "The market improved in the fourth quarter before pulling back due to OPEC cuts, accelerated fleet growth and seasonal factors.
“In recent weeks, the market has reversed course, with US export volumes and VLCC rates doubling since January. We expect the market to remain volatile but continue to trend higher as the fleet prepares for new regulations and oil volumes return.
“Crude oil tanker demand will also receive a significant boost as refineries increase crude import runs to meet incremental demand for compliant fuels prior to the implementation of IMO 2020 regulations. Although there are always risks related to slowing global demand, multiple positive market drivers should result in strong year over year growth in earnings," he said.
CFO Inger Klemp, added: "Our current newbuilding programme will be completed with the delivery of our last VLCC newbuilding expected in April, 2019.
“With limited capital expenditure requirements going forward and backed by attractive financing, Frontline is committed to maintaining its healthy balance sheet. This supports our low breakeven rates and enables the company to generate significant cash flow in a strengthening tanker market," Klemp said.