Frontline Loss Smaller than Feared

Frontline (FRO 26.42, -0.57) reported a third quarter loss that wasn't as bad as feared, but revenues plunged as a weaker spot market took its toll on the owner and operator of oil tankers.

Frontline reported a third quarter loss of $0.07 per share, $0.05 better than the First Call consensus that expected a loss of $0.12.

Revenues fell 59.6% year-over-year to $233 million.  Despite the sharp drop, Frontline's revenue topped the $197.5 million consensus.

The company reports average daily time charter equivalents earned in the spot and period market in the third quarter by the its VLCCs, Suezmax tankers and Suezmax OBO carriers were $32,100, $15,900 and $42,200, respectively, compared with $38,400, $26,800, and $42,700, respectively, in the preceding quarter.

The spot earnings for double hull VLCCs and Suezmax tankers were $26,800 and $12,800, respectively, in Q309, compared with $38,700 and $24,400, respectively, in the preceding quarter. The Gemini Suezmax pool had spot earnings of $14,866 per day in the third quarter.

The company said its board has progressed with a plan "to strengthen Frontline's resistance in the case the current weak oil demand will continue to negatively influence tanker earnings."