Bermuda-based Frontline Ltd reported Aug. 27 an adjusted net income of $4.2 million, or 2 cents per share, for the second quarter, up from an adjusted net loss of $27.7 million, or a loss of 16 cents per share, a year ago.
Net income also amounted to $1.1 million during the quarter, topping a net loss of $22.9 million in the prior-year period.
Frontline Management AS CEO Robert Macleod expects better earnings after a recent deal for the acquisition of 10 Suezmax tankers.
In August, the company also entered into a nonbinding term sheet with the Trafigura Group Pte. Ltd. and Golden Ocean Group Ltd. to create a joint venture for the supply of marine fuels.
During the quarter, Frontline's very large crude carriers had an average daily time charter equivalent of $25,600, while its Suezmax tankers were at $16,200 and its LR2 Aframax tankers were at $18,100.
The company expects spot time charter equivalents to drop further due to the impact of ballast days in the third quarter.
However, Macleod said he expects improvement in the tanker market as a result of the impact of IMO 2020, the return of refineries from maintenance, and a boost in U.S. crude oil production driving tonne-miles.
"We believe the tanker market dynamics present a compelling opportunity across multiple time frames," he said.
