Frontline chief executive Robert Hvide Macleod is bullish on prospects for 2020 despite a "horror movie" start to the year.
Speaking on a conference call with analysts, he said booming tanker rates started reversing early in 2020 due to Middle East attacks, sanctions being lifted on Cosco VLCCs, and Libyan port blockades.
"To make matters much worse, the coronavirus appeared, immediately impacting on world trade, oil demand and the freight market," he added.
"The start to this year has been extraordinary. It has actually felt like a horror movie at times to be honest, but importantly we are making money in today's freight environment. Having a modern and well run fleet is key."
Macleod also took time to thank all his employees for their efforts.
The VLCC segment is currently weak, he said, but Frontline's significant exposure to the better performing suezmaxes and LR2s is helping.
Turning back to the Covid-19 coronavirus outbreak, he said the "negative effect is certainly strong, but forecasts are very varied".
"Demand will return and increase in 2020," he added. "We have a cautiously optimistic view that the virus will be contained sooner rather than later."
Sentiment will turn around
Macleod: "There is an extremely negative sentiment now but it will turn."
When asked about dividend payments for the first quarter, he said that if the outbreak crisis continues throughout the period, "the board will have a really good think".
Our fleet is the best we've ever had.
Robert Macleod
But if things return to normal, the payout will be decent. "It all depends on how it pans out," the executive.
The last time the tanker orderbook was so low was in 1997, he said.
"Our fleet is the best we've ever had," he added.
"We are extremely prudent about how we do our chartering. Day to day fixing is extremely important. We are laser-focused on that."
The Oslo and New York-listed shipowner logged net earnings of nearly $109m in the final three months of 2019, compared with $25.5m a year ago.
The average time-charter equivalent (TCE) rates for its VLCCs were $58,000 per day in the fourth quarter, up from $22,900 in the third.
For the first quarter of this year, Frontline has contracted vessels at an average of $90,300 for the 83% of days it has covered.
Its break-even is $22,700 per day.
Macleod said the first quarter is already looking better than the final three months of 2019.
