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Stock Market & Financial Investment News

News Breaks
December 11, 2012
09:30 EDTFRO, SFLShip Finance to terminate twp remaining charter parties with Frontline
Ship Finance International (SFL) announced that it has agreed with a subsidiary of Frontline Ltd. (FRO) to terminate the charter parties for the two remaining 21-year old combination carriers Front Viewer and Front Guider. Frontline will make a net settlement payment to Ship Finance of approximately $23.5M as compensation for the early termination of the charters and the estimated loss of future cash sweep relating to the two vessels. The two vessels were previously employed on profitable sub-charters which have now been terminated early by Frontline against a cash settlement. The company has agreed to sell Front Viewer to an unrelated third party with expected delivery to the new owner in late December. Net proceeds from the sale is estimated to be approximately $9.1M. The last combination carrier, Front Guider, is expected to be sold in 1Q13, and will remain on charter to Frontline until a sale is concluded.
News For SFL;FRO From The Last 14 Days
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November 25, 2014
14:47 EDTFROFrontline upgraded to Hold from Strong Sell at Nordea
08:41 EDTSFLShip Finance reports Q3 EPS 37c, consensus 33c
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05:28 EDTFROFrontline board considering several debt restructuring alternatives
In October, Frontline reduced the outstanding under the convertible bond loan with maturity in April 2015 from $190M to $149.2M through buy back and debt/equity swap. Following this, and the termination of the three charter parties for Front Commerce, Front Comanche and Front Opalia in November 2014 total debt and capital lease obligations are approximately $956M. The tanker market has showed some strength in Q4. A strong market creates some flexibility for the company going forward. The board is continuing to consider several alternatives in restructuring the company's debt and capital lease obligations. The target is to rebuild Frontline into being a leading tanker company.
05:26 EDTFROFrontline reports Q3 EPS ex-items (15c), consensus (20c)
Frontline has recorded a vessel impairment loss of $41.5M in the three months ended September 30. This loss relates to the VLCCs Front Opalia, Front Commerce, Front Comanche and Ulriken. Impairment losses are taken when events or changes in circumstances occur that cause the company to believe that future cash flows for an individual vessel will be less than its carrying value and not fully recoverable. In such instances an impairment charge is recognized if the estimate of the undiscounted cash flows expected to result from the use of the vessel and its eventual disposition is less than the vessel's carrying amount. The average daily time charter equivalents earned in the spot and period market in Q3 by the Company's VLCCs and Suezmax tankers were $24,600 and $18,600 compared with $13,900 and $12,400 in the preceding quarter. The spot earnings for the company's VLCCs and Suezmax vessels were $23,900 and $19,500 compared with $12,500 and $12,400 in the preceding quarter.

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