Fredriksen's tanker carrier plunges into the red in weak Q2

Completed charter contracts and drydocking expenses resulted in a USD 19.4 million loss on the bottom line in a weak second quarter.
Photo: Frontline
Photo: Frontline

Tanker carrier Frontline, which is controlled by John Fredriksen, booked a net deficit of USD 19.4 billion in the second quarter, which in CEO Robert Hvide Macleod's words was decidedly weak. Primarily due to the growth in the global tanker fleet.

The size of the deficit is explained by expenses for drydocking of USD 12.2 million and losses on the two completed charter contracts.

"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," said Robert Hvide Macleod, CEO of Frontline, in a press release.

Through the latest quarters, the carrier has sold both older and unprofitable VLCCs and Suezmax vessels, which has reduced the average fleet age from a previous 8.1 years to 5.7 years today.

Shipping analysts at Fearnley Securities describe Frontline's result in the second quarter as weaker than expected while incoming contracts in the third quarter look more promising.

English Edit: Lena Rutkowski

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