John Fredriksen's Frontline has refinanced debt due next year in deals worth $351m, meaning it has no borrowings maturing until 2023.
The Oslo-listed tanker owner said two separate agreements replaced loans expiring in April and May of 2021.
The company clinched a $250.7m senior secured term loan facility this month with a number of banks.
The new facility matures in May 2025 at interest of Libor plus 1.9%.
The second term loan was also agreed in November with ING and Credit Suisse for $100.8m.
Maturing in November 2025, this is priced at the same level. Both have been fully drawn down.
A clear path
The company had already added $426m of new loans in July and August.
"Frontline has no material maturities until 2023. The company’s newbuilding programme is also fully funded," chief financial officer Inger Klemp said.
"Importantly, our recent financings were done at attractive terms, maintaining our competitive cost structure and reinforcing Frontline's strong standing within the lending community."
Frontline has $161m remaining to pay on four LR2s due in 2021 and 2022 from Shanghai Waigaoqiao Shipbuilding in China.
No dividend will be paid for the third quarter due to the "uncertain and evolving nature of near-term expectations", Frontline said.
Interim chief executive Lars Barstad told TradeWinds: "With our newbuilds fully funded, at very competitive terms considering the industry we are in, we further cement our low cash break-even levels, putting ourselves in a good position to deliver shareholder returns."
He added that Frontline will "always have the ambition to pay dividends."
In the first and second quarters, the company returned a total of $1.20 per share to investors.
"[With] the current market conditions however, and with the uncertainties going forward in a global pandemic, we decided to preserve the company's cash position on this occasion," Barstad said.
Back in black
Net profit in the third quarter came in at $57.1m, from a loss of $9.9m in the same period of 2019. The 68 ships clocked up revenue of $247.4m, against $187m the year before.
Spot time charter earnings for VLCCs were $49,200 per day, while suezmaxes achieved $25,100 and LR2s $12,800.
For the fourth quarter, the owner is estimating spot rates of $22,600 per day for VLCCs. The company has 74% of these vessel days contracted.
For suezmaxes this figure is $12,600 for 61% of contracted days, and $13,800 for 65% of LR2 days.
Fearnley Securities said Ebitda of $109m was below expectations of $124m, but fourth-quarter bookings were in line with expectations and peers.
Barstad said the strong results came amid an extremely volatile quarter for the industry.
Potential for rebound
"Oil demand slowly began to recover in the third quarter of 2020, and the record levels of global oil inventories have been gradually declining," he added.
"While demand remains significantly lower than prior to the pandemic, it is forecast to rebound in 2021."
This, together with the potential for Opec+ production cuts to be reversed, would quickly boost tanker demand, Barstad added.
The company is still battling Covid-19 restrictions on crew changes and said 720 seafarers will be repatriated in the fourth quarter at an estimated cost of $1.5m.
