Frontline has posted a profit of $19.8m for the traditionally strongest quarter of the year, but it was insufficient to keep the VLCC giant from posting a full-year loss.
The tanker owner’s chief executive Lars Barstad said the fourth quarter offered tanker owners some relief with rates appreciated firmly, albeit from decade low levels.
“The seasonal uptick, as the northern hemisphere prepared for winter, did materialise, albeit to a modest degree,” Barstad said.
“Frontline, with what we believe is an industry leading low-cost base, managed to capture the rising rates quickly, and as our fourth-quarter numbers show, moved closer to cash-breakeven levels.”
The John Fredriksen-backed tanker owner said it “continues to be very constructive for what’s to come this year, as the world continues its volatile path to recovery”.
Revenue for the fourth quarter was up 22% year on year to $213.5m.
Reported spot time-charter equivalent rates for VLCCs, suezmax tankers and LR2 tankers in the fourth quarter of 2021 were $16,500, $14,200 and $13,900 per day, respectively, Frontline said.
The quarter saw Frontline take delivery of the 2019-built VLCCs Front Driva and Front Nausta from Hyundai Heavy Industries and the LR2 tanker, Front Feature, from Shanghai Waigaoqiao Shipbuilding Company.
The Frontline fleet stood at 70 vessels at the end of the year with 64 vessels owned by the company, two VLCCs that are under finance leases and two suezmax and two aframax tankers that are under the company’s commercial management.
Separately, Frontline confirmed that since 1 December all seafarers joining its vessels have been fully vaccinated and hold valid Covid-19 passports.
“This is in no small part due to the significant efforts and cooperation of our customers, seafarers, ship managers and technical department, but also in part due to the increased availability of vaccines in ports around the world,” Frontline said.
“We are grateful to our customers for their support in collaborating with us to ensure safe operations while allowing our seafarers time to get vaccinated.”
