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Frontline shares sink over 8% following disappointing earnings, co will not pay dividend for Q2
Frontline (FRO $3.38 -0.31) reported second quarter loss of $0.05 per share, excluding impairment loss of $0.17 per share, $0.02 better than the Capital IQ Consensus of ($0.07), while revenues fell 19.5% year/year to $176.6 million versus the $107.14 mln consensus. The company will not pay a dividend for the second quarter of 2012. Following the restructuring completed in December 2011, the cash break even rates for the company were substantially reduced for the period 2012- 2015, creating a downside protection for the company. The Board continues to see a challenging supply / demand situation for the tanker market as a consequence of the combined VLCC and Suezmax fleet increasing by approximately 98% between 2004-2012 without a similar increase in demand. Co will remain cautious in this market environment and focus its resources on the present activities until a clearer sign of recovery can be seen in the tanker market. Based on results achieved so far in the quarter and the current outlook the Board expects the operating result in the third quarter to be significantly worse than in the second quarter.
Frontline (FRO $3.38 -0.31) reported second quarter loss of $0.05 per share, excluding impairment loss of $0.17 per share, $0.02 better than the