d855720_6-k.htm
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
6-K
REPORT
OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 OF
THE
SECURITIES EXCHANGE ACT OF 1934
For
the
month of: February 2008
Commission
File Number: 001-16601
Frontline
Ltd.
|
(Translation
of registrant’s name into English)
|
|
Par-la-Ville
Place, 14 Par-la-Ville Road, Hamilton, HM 08, Bermuda
|
(Address
of principal executive office)
|
Indicate
by check mark whether the registrant files or will file annual reports under
cover of Form 20-F or Form 40-F.
Form
20-F
[X] Form 40-F
[ ]
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)(1): ___
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)7: ___
Indicate
by check mark whether the registrant by furnishing the information contained
in
this Form is also thereby furnishing the information to the Commission pursuant
to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes
[_] No [X]
If
“Yes”
is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b):
82-______________.
INFORMATION
CONTAINED IN THIS FORM 6-K REPORT
Attached
as Exhibit 1 is a copy of the press release of Frontline Ltd. (the “Company”)
dated February 13, 2008, announcing the Company’s preliminary financial results
for the fourth quarter and year ended December 31, 2007.
Exhibit
1
FRONTLINE
LTD.
PRELIMINARY
FOURTH QUARTER AND FINANCIAL YEAR 2007 RESULTS
Highlights
·
|
Frontline
reports net income of $202.3 million and earnings per share of $2.70
for
the fourth quarter of 2007, including gain on sale of assets
and securities of $144.0 million
|
·
|
Frontline
reports annual net income in 2007 of $574.4 million and earning per
share
of $7.68, including gain on sale of assets and securities of $323.2
million
|
·
|
Frontline
announces a cash dividend of $2.00 per share for the fourth quarter
of
2007
|
·
|
Frontline
has paid a total dividend of $767.8 million in 2007, including the
spin
off of Ship Finance in the first quarter of
2007
|
·
|
In
line with our strategy to reduce exposure to single hull tankers,
Frontline has agreed to sell three single hull vessels in the fourth
quarter of 2007. Twelve single hull vessels have been sold or committed
to
be sold in 2007
|
Preliminary
Fourth Quarter and Financial Year 2007 Results
The
Board
of Frontline Ltd. (the “Company” or “Frontline”) announces net income of $202.3
million for the fourth quarter of 2007, equivalent to earnings per share of
$2.70. Operating income for the quarter was $152.7 million including a gain
on
sale of assets of $53.4 million. This gain consists of $37.0 million relating
to
the delivery of the second converted heavy lift vessel to Dockwise Ltd.
(“Dockwise”) and $16.4 million relating to the termination of the lease for the
Front Birch.
The
reported earnings reflect a stronger spot market. The average daily time charter
equivalents (“TCEs”) earned in the spot and period market in the fourth quarter
by the Company’s VLCCs, Suezmax tankers and Suezmax OBO carriers were $45,700,
$33,100 and $42,400, respectively compared with $36,000, $25,000 and $41,300
respectively in the third quarter. The results show a continued differential
in
earnings between single and double hull tonnage. The spot earnings for the
Company’s double hull VLCC and Suezmax vessels were $43,600 and $37,500 in the
fourth quarter, compared to $35,500 and $28,300 in the third
quarter.
Profit
share expense of $16.1 million has been recorded in the fourth quarter as a
result of the profit sharing agreement with Ship Finance International Limited
(“Ship Finance”) compared to $5.5 million in the third quarter.
Interest
income was $14.4 million in the fourth quarter, of which $7.6 million relates
to
restricted deposits held by subsidiaries reported in Independent Tankers
Corporation (“ITC”). Interest expense, net of capitalized interest, was $58.1
million in the fourth quarter of which $14.0 million relates to ITC and $44.1
million relates to the capital lease interest expense.
Other
financial items in the fourth quarter includes a $48.7 million gain on the
sale
of the Company’s entire shareholding in Dockwise and a $41.9 million gain on the
sale of the Company’s entire shareholding in IMAREX ASA (“IMAREX”).
Frontline
announces net income of $574.4 million for the year ended December 31, 2007,
equivalent to earnings per share of $7.68. The average TCEs earned in the spot
and period market by the Company’s VLCCs, Suezmax tankers, and Suezmax OBO
carriers for the year ended December 31, 2007 were $45,700, $33,000 and $39,700,
respectively.
As
of
December 31, 2007, the Company had total cash and cash equivalents of $819.8
million which includes $651.4 million of restricted cash. Restricted cash
includes $422.8 million relating to deposits in ITC and $228.6 million in
Frontline Shipping Limited and Frontline Shipping II Limited which are
restricted under the charter agreements with Ship Finance.
The
financial statements for the fourth quarter of 2006 have been restated to
reflect the revised accounting treatment for three entities within the ITC
group
which were previously fully consolidated but are now being accounted for as
investments under the equity method. The restatement has no effect on net
income.
As
a
result of the spin-off and subsequent deconsolidation of Ship Finance in the
first quarter of 2007, Frontline no longer reports vessels leased from Ship
Finance as owned vessels, but rather as vessels held under capital
lease. Additionally, Frontline no longer reports results relating to
containerships and rig that were consolidated by Ship Finance since the Company
will not have continued involvement with these vessels. Consequently, the
results for the years ended December 31, 2007 and 2006 have been reclassified
to
reflect discontinued operations related to these containerships and
rigs.
As
of
February 2008, the Company has average total cash cost breakeven rates on a
TCE
basis for VLCCs and Suezmaxes of approximately $31,400 and $22,500,
respectively.
Sale
of Assets
In
line
with our strategy to reduce exposure to single hull tonnage, Frontline has
in
the fourth quarter of 2007 agreed with Ship Finance to terminate the long term
charter parties between the companies for the single hull VLCC Front Duchess
and
for the double side single bottom Suezmax tankers Front Birch and Front Maple.
Ship Finance has simultaneously sold the vessels. Frontline has received and
recognized a compensation payment of approximately $16.4 million for the early
termination of the charter party regarding Front Birch in the fourth quarter
of
2007 and will receive and recognize a further $41.8 million in the first quarter
of 2008 relating to Front Duchess and Front Maple.
In
October 2007, Frontline announced the sale of its entire holding of 34,976,500
shares in Dockwise. The shares were sold at a gross price of NOK 25 per share,
with net proceeds of approximately $157 million. Frontline has recorded a gain
of $48.7 million in the fourth quarter of 2007 as a result of this sale. This
is
reported in other financial items. Simultaneously with the sale of the shares,
Frontline declared an interim extraordinary dividend of $1.75 per share which
was paid on October 24, 2007. In the second quarter of 2007, Frontline recorded
a gain on the issuance of shares by Dockwise of $43.7 million and in the second
and fourth quarter of 2007 Frontline recorded a gain on delivery of vessels
to
Dockwise in an amount of $60.7 million. Further gains will be recorded at the
time of delivery of the two remaining vessels to Dockwise, which is estimated
to
be in the second quarter of 2008.
In
November 2007, Frontline sold its entire holding of 1,714,544 shares in IMAREX
to NYMEX Holdings, Inc. The sale price was NOK 160 per share, with proceeds
of
approximately $51 million.
Frontline
has recorded a gain of $41.9 million in the fourth quarter of 2007 as a result
of this sale. This is reported in other financial items.
Other
Matters
Frontline
announces today that it has agreed to invest $20 million in NAVIG8 LIMITED
(“Navig8”) against the issue of new share capital representing a total of 15.8%
stake in the company. Navig8 controls approximately 30 tankers representing
approximately 1.4 million dwt, including newbuildings on order. Navig8 actively
trades a time-charter fleet, owns and invests in tonnage, commercially and
technically manages vessels for third parties and trades in the
freight-derivatives market. The investment should be considered as purely
financial, but gives Frontline at the same time a foothold in the Clean
Petroleum Product market.
In
January 2008, Golden President Shipping Corporation, a 100% subsidiary of Golden
Ocean Group Limited (“Golden Ocean”), had a full and final win in the
court case against Bocimar N.V. on the Channel Alliance Time Charter Party
and
was awarded $14.7 million plus interest thereon in an amount of $2.3 million.
The amount of $14.7 million was originally guaranteed by Frontline to Golden
Ocean in connection with the spin-off in December 2004, and was later paid
to
Golden Ocean as it became due according to the charter party. The
full settlement from Bocimar N.V. is therefore due to Frontline. The proceeds
are expected to be recognized in the first quarter of 2008.
On
February 13, 2008, the Board declared a dividend of $2.00 per share. The record
date for the dividend is February 26, 2008, ex dividend date is February 22,
2008 and the dividend will be paid on or about March 10, 2008.
74,825,169
ordinary shares were outstanding as of December 31, 2007, and the weighted
average number of shares outstanding for the quarter was also
74,825,169.
The
Market
The
tanker market was tranquil at the start of the fourth quarter with average
VLCC
earnings at about $27,500 per day for the first half of the quarter. Markets
then spiked for the VLCCs to a high of about $230,000 per day mid December
for
later decreasing, according to Clarksons.
The
average market rate for VLCCs from MEG to Japan in the fourth quarter was
approximately WS 117 ($78,900 per day) compared to approximately WS 56 ($22,500
per day) in the third quarter of 2007.The average rate for Suezmaxes from WAF
to
USAC in the fourth quarter of 2007 was about WS 140 ($45,800 per day), compared
to about WS 87 ($21,400 per day) in the third quarter of 2007.
Bunkers
at Fujairah averaged about $463/mt in the fourth quarter with a low of about
$399/mt and a high of about $512/mt.
The
International Energy Agency (IEA) reported in February 2008 an average OPEC
oil
production, including Iraq, of 31.6 million barrels per day during the fourth
quarter of the year, a 0.95 million barrels per day increase from the third
quarter. The next OPEC meeting is scheduled to take place on March 5,
2008.
IEA
further estimates that world oil demand averaged 87.2 million barrels per day
in
the fourth quarter, a 1.9 percent increase from the third quarter of 2007.
IEA
predicts that the average demand for 2008 in total will be 87.6 million barrels
per day, or a 1.9 percent growth from 2007, hence showing a firm belief in
continued demand growth.
According
to Fearnleys, the VLCC fleet totalled 489 vessels at the end of the fourth
quarter with seven deliveries during the quarter. There are 40 deliveries
expected in 2008. The total orderbook amounted to 176 vessels at the end of
the
fourth quarter, up from 172 vessels after the third quarter of 2007. The current
orderbook represents about 36 percent of the VLCC fleet. Five VLCCs were deleted
from the trading fleet whilst eleven VLCCs were ordered during the quarter.
The
single hull fleet amounted to 137 vessels at the end of the fourth
quarter.
The
Suezmax fleet totalled 348 vessels at the end of the quarter, down from 350
vessels after the third quarter of 2007, a 0.6 percent fleet decrease over
the
quarter. Five Suezmaxes were deleted from the trading fleet, no Suezmaxes were
ordered and 3 deliveries took place in the quarter. The total orderbook amounted
to 134 vessels at the end of the quarter, a decrease of one from the end of
the
third quarter. There are 19 deliveries expected in 2008. The orderbook
represents approximately 39 percent of the current Suezmax fleet. The single
hull fleet amounted to 47 vessels at the end of the fourth quarter.
Strategy
Frontline's
core strategy is to maintain its position as a world leading operator and
charterer of modern, high quality oil tankers. The majority of its double hull
tonnage is operating in the spot market. All of its remaining single hull VLCC’s
have been fixed out on time charters for the remainder of the fixed committed
period and all of the Company’s eight OBO carriers have been fixed out on medium
to long term charters. Through sales of vessels and time charters, the Company
has reduced the single hull exposure to only one Suezmax vessel operating in
the
spot market.
Frontline
has four VLCC and eight Suezmax newbuildings on order, confirming its position
as a leading operator of quality Suezmax and VLCC tonnage. The total investment
of the newbuilding program is approximately $1 billion. As of December 31,
2007,
the Company has paid $104 million and expects to pay further approximately
$93
million in the first quarter of 2008 before a planned drawdown of financing
which will be equal to 80 percent of the contractual prices. Based on recent
transactions the market values of the newbuilding contracts are significantly
higher than the original contractual newbuilding prices.
Frontline
will continue to look for attractive opportunities in the Sales and Purchase
market as well as in the charter market.
The
Company has for a time evaluated opportunities to enhance the value of its
investment in ITC and has decided to do a separate listing of ITC and to
distribute 20 percent to the eligible Frontline shareholders during the first
or
second quarter of 2008. The Company will provide full details of the
distribution in the near future.
Outlook
The
tanker market improved considerably in November 2007 and although tanker rates
have come off significantly since their peak in December 2007, they are still
at
good levels in the first quarter of 2008, with average TCE rates for modern
VLCCs, according to Clarkson, of $102,000 per day so far this quarter compared
to $58,900 per day in the first quarter of 2007. The first quarter of 2008
started with spot fixtures in the VLCC and Suezmax segment of $197,800 and
$104,100 per day, respectively, and present indication from Clarkson in the
VLCC
and Suezmax segment is $79,000 and $40,200 per day, respectively.
Although
the US economy is showing signs of weakness, the world economy is still strong
with a forecasted global GDP growth of 4.1 percent for 2008. IEA projects oil
consumption to rise by 1.9 percent in 2008. The 2008 forecasts, however, may
be
too optimistic and further revised if forthcoming assessments from the IMF
and
the OECD point to a weaker than expected outlook for the US economy, which
may
be only partially offset by strong GDP growth in the Middle East and
China.
The
overall order book for tankers has now approached 37 percent of the current
fleet. The impact from the new vessels will be mitigated by the fact that the
order book is spread over four years, that 22 percent of the fleet is non double
hull, combined with increased inefficiency of the single hull fleet caused
by
reduced acceptance by major charterers to employ such tonnage. Korean and
Philippine officials have stated their reluctance to use single hull tonnage
in
the future. Further, Frontline estimates that about 40 VLCCs will be converted
for non-trading purposes in 2008, about 90 percent to VLOC and the balance
to
FSO/FPSO. It is also likely that some of the tonnage will be delayed as a
function of the uncertainty of the delivery schedule for several of the yards
due to financing issues.
Frontlines
newbuilding program has attractive terms, seems well timed and provides for
future growth as we divest our older, single hull fleet. These divestures have
resulted in Frontline having low exposure to single hull tonnage. Our charter
coverage is estimated to 39 percent and 30 percent of the fleet in 2008 and
2009, respectively. The Company has low cash breakeven rates which reduces
the
financial risk and creates a good platform for cash generation.
The
recent development which have included tighter trading restrictions on single
hull tonnage, more conversion of tankers to dry, financial uncertainty linked
to
yards newbuilding progress and stronger spot rates have all positively
influenced the short as well as the long term outlook for the tanker
market.
The
results and the liquidity in the first quarter of 2008 will be positively
influenced by payment of $ 41.8 million from Ship Finance for termination of
two
charters, and $17.0 million in payment from Bocimar N.V. Based on the regular
trading results so far in the first quarter of 2008, the Board expects a strong
result including continued high dividend payment for the first quarter of
2008.
Forward
Looking Statements
This
press release contains forward looking statements. These statements are based
upon various assumptions, many of which are based, in turn, upon further
assumptions, including Frontline management's examination of historical
operating trends. Although Frontline believes that these assumptions were
reasonable when made, because assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict
and
are beyond its control, Frontline cannot give assurance that it will achieve
or
accomplish these expectations, beliefs or intentions.
Important
factors that, in the Company's view, could cause actual results to differ
materially from those discussed in this press release include the strength
of
world economies and currencies, general market conditions including fluctuations
in charter hire rates and vessel values, changes in demand in the tanker market
as a result of changes in OPEC's petroleum production levels and world wide
oil
consumption and storage, changes in the Company's operating expenses including
bunker prices, drydocking and insurance costs, changes in governmental rules
and
regulations or actions taken by regulatory authorities, potential liability
from
pending or future litigation, general domestic and international political
conditions, potential disruption of shipping routes due to accidents or
political events, and other important factors described from time to time in
the
reports filed by the Company with the United States Securities and Exchange
Commission.
February
13, 2008
The
Board
of Directors
Frontline
Ltd.
Hamilton,
Bermuda
Questions
should be directed to:
Bjørn
Sjaastad: Chief Executive Officer, Frontline Management
AS
|
+47
23
11 40 99
|
|
Inger
M. Klemp: Chief Financial Officer, Frontline Management
AS
|
+47
23
11 40 76
|
FRONTLINE
LTD FOURTH QUARTER REPORT (UNAUDITED)
2006
Oct-Dec
(restated)
|
|
|
2007
Oct-Dec
|
|
INCOME
STATEMENT
(in
thousands of $)
|
|
2007
Jan-Dec
|
|
|
2006
Jan-Dec
|
|
|
345,265 |
|
|
|
331,596 |
|
Total
operating revenues
|
|
|
1,299,927 |
|
|
|
1,558,369 |
|
|
73,799 |
|
|
|
53,441 |
|
Gain
from sale of assets
|
|
|
117,815 |
|
|
|
95,655 |
|
|
88,167 |
|
|
|
92,857 |
|
Voyage
expenses and commission
|
|
|
352,451 |
|
|
|
399,046 |
|
|
- |
|
|
|
16,106 |
|
Profit
share expense
|
|
|
37,279 |
|
|
|
- |
|
|
45,766 |
|
|
|
45,631 |
|
Ship
operating expenses
|
|
|
196,258 |
|
|
|
194,636 |
|
|
6,268 |
|
|
|
19,349 |
|
Charterhire
expenses
|
|
|
56,868 |
|
|
|
24,923 |
|
|
12,322 |
|
|
|
11,500 |
|
Administrative
expenses
|
|
|
36,410 |
|
|
|
32,142 |
|
|
49,392 |
|
|
|
46,883 |
|
Depreciation
|
|
|
189,549 |
|
|
|
199,876 |
|
|
201,915 |
|
|
|
232,326 |
|
Total
operating expenses
|
|
|
868,815 |
|
|
|
850,623 |
|
|
217,149 |
|
|
|
152,711 |
|
Operating
income
|
|
|
548,927 |
|
|
|
803,401 |
|
|
13,921 |
|
|
|
14,373 |
|
Interest
income
|
|
|
54,316 |
|
|
|
47,612 |
|
|
(50,418 |
) |
|
|
(58,104 |
) |
Interest
expense
|
|
|
(230,315 |
) |
|
|
(200,396 |
) |
|
989 |
|
|
|
(59 |
) |
Share
of results from associated companies
|
|
|
573 |
|
|
|
1,118 |
|
|
294 |
|
|
|
1,768 |
|
Foreign
currency exchange gain
|
|
|
3,312 |
|
|
|
1,056 |
|
|
106 |
|
|
|
91,891 |
|
Other
financial items
|
|
|
131,134 |
|
|
|
8,539 |
|
|
182,041 |
|
|
|
202,580 |
|
Income
before taxes and minority interest
|
|
|
507,947 |
|
|
|
661,330 |
|
|
- |
|
|
|
- |
|
Gain
on issuance of shares by associates
|
|
|
83,566 |
|
|
|
- |
|
|
(50,855 |
) |
|
|
- |
|
Minority
interest
|
|
|
(22,162 |
) |
|
|
(158,682 |
) |
|
(41 |
) |
|
|
(254 |
) |
Taxes
|
|
|
(419 |
) |
|
|
(162 |
) |
|
3,455 |
|
|
|
- |
|
Discontinued
operations
|
|
|
5,442 |
|
|
|
13,514 |
|
|
134,600 |
|
|
|
202,326 |
|
Net
income
|
|
|
574,374 |
|
|
|
516,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1.80 |
|
|
$ |
2.70 |
|
Basic
earnings per share ($)
|
|
$ |
7.68 |
|
|
$ |
6.90 |
|
$ |
1.75 |
|
|
$ |
2.70 |
|
Earnings
per share from continuing operations ($)
|
|
$ |
7.60 |
|
|
$ |
6.72 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
on timecharter basis ($ per day per vessel)*
|
|
|
|
|
|
|
|
|
|
47,600 |
|
|
|
45,700 |
|
VLCC
|
|
|
45,700 |
|
|
|
56,800 |
|
|
31,200 |
|
|
|
33,100 |
|
Suezmax
|
|
|
33,000 |
|
|
|
37,800 |
|
|
34,200 |
|
|
|
42,400 |
|
Suezmax
OBO
|
|
|
39,700 |
|
|
|
31,700 |
|
*
Basis =
Calendar days minus off-hire. Figures after deduction of broker
commission
BALANCE
SHEET
(in
thousands of $)
|
|
2007
Dec
31
|
|
|
2006
Dec
31
(audited)
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short
term
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
and cash equivalents
|
|
|
168,432 |
|
|
|
197,181 |
|
Restricted
cash
|
|
|
651,377 |
|
|
|
677,533 |
|
Other
current assets
|
|
|
322,977 |
|
|
|
237,428 |
|
|
|
|
|
|
|
|
|
|
Long
term
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Newbuildings
|
|
|
160,298 |
|
|
|
166,851 |
|
Vessels
and equipment, net
|
|
|
208,516 |
|
|
|
2,446,278 |
|
Vessels
under capital lease, net
|
|
|
2,573,986 |
|
|
|
626,374 |
|
Investment
in finance leases
|
|
|
- |
|
|
|
175,141 |
|
Investment
in unconsolidated subsidiaries and associated companies
|
|
|
5,633 |
|
|
|
17,825 |
|
Deferred
charges and other long-term assets
|
|
|
69 |
|
|
|
45,326 |
|
Total
assets
|
|
|
4,091,288 |
|
|
|
4,589,937 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short
term
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short
term debt and current portion of long term debt
|
|
|
96,811 |
|
|
|
281,409 |
|
Current
portion of obligations under capital lease
|
|
|
146,931 |
|
|
|
28,857 |
|
Other
current liabilities
|
|
|
393,811 |
|
|
|
133,650 |
|
|
|
|
|
|
|
|
|
|
Long
term
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long
term debt
|
|
|
376,723 |
|
|
|
2,181,885 |
|
Obligations
under capital lease
|
|
|
2,581,220 |
|
|
|
723,073 |
|
Other
long term liabilities
|
|
|
30,379 |
|
|
|
31,381 |
|
Minority
interest
|
|
|
- |
|
|
|
541,122 |
|
Stockholders’
equity
|
|
|
465,413 |
|
|
|
668,560 |
|
Total
liabilities and stockholders’ equity
|
|
|
4,091,288 |
|
|
|
4,589,937 |
|
2006
Oct-Dec
(restated)
|
|
|
2007
Oct-Dec
|
|
STATEMENT
OF CASHFLOWS
(in
thousands of $)
|
|
2007
Jan-Dec
|
|
|
2006
Jan-Dec
(audited)
|
|
|
|
|
|
|
OPERATING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
134,600 |
|
|
|
202,326 |
|
Net
income
|
|
|
574,374 |
|
|
|
516,000 |
|
|
|
|
|
|
|
|
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
51,465 |
|
|
|
46,886 |
|
Depreciation
and amortization
|
|
|
191,967 |
|
|
|
207,195 |
|
|
453 |
|
|
|
89 |
|
Unrealised
foreign currency exchange loss
|
|
|
844 |
|
|
|
74 |
|
|
(73,799 |
) |
|
|
(143,965 |
) |
Gain
on sale of assets
|
|
|
(323,500 |
) |
|
|
(105,439 |
) |
|
(989 |
) |
|
|
59 |
|
Results
from associated companies
|
|
|
(573 |
) |
|
|
(1,118 |
) |
|
(1,527 |
) |
|
|
- |
|
Adjustment
of financial derivatives to market value
|
|
|
(3,618 |
) |
|
|
9,348 |
|
|
49,624 |
|
|
|
(5,078 |
) |
Other,
net
|
|
|
15,918 |
|
|
|
153,356 |
|
|
54,978 |
|
|
|
(20,928 |
) |
Change
in operating assets and liabilities
|
|
|
108,923 |
|
|
|
52,140 |
|
|
214,805 |
|
|
|
79,389 |
|
Net
cash provided by operating activities
|
|
|
564,335 |
|
|
|
831,556 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INVESTING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(16,733 |
) |
|
|
(23,123 |
) |
Maturity
(placement) of restricted cash
|
|
|
12,674 |
|
|
|
13,730 |
|
|
- |
|
|
|
- |
|
Sale
of subsidiary, net of cash sold
|
|
|
89,264 |
|
|
|
- |
|
|
- |
|
|
|
- |
|
Cash
impact of deconsolidation of subsidiary
|
|
|
(146,435 |
) |
|
|
- |
|
|
14 |
|
|
|
- |
|
Acquisition
of minority interest
|
|
|
- |
|
|
|
(7,198 |
) |
|
(84,599 |
) |
|
|
(31,293 |
) |
Additions
to newbuildings, vessels and equipment
|
|
|
(337,570 |
) |
|
|
(557,647 |
) |
|
1,297 |
|
|
|
- |
|
Advances
to associated companies, net
|
|
|
(44,694 |
) |
|
|
(2,112 |
) |
|
5,659 |
|
|
|
- |
|
Receipt
from investment in finance lease and loans receivable
|
|
|
- |
|
|
|
12,562 |
|
|
- |
|
|
|
- |
|
Purchase
of other assets
|
|
|
(43,375 |
) |
|
|
(71,067 |
) |
|
182,930 |
|
|
|
8,984 |
|
Proceeds
from sale of newbuildings, vessels and equipment
|
|
|
464,041 |
|
|
|
284,959 |
|
|
- |
|
|
|
211,354 |
|
Proceeds
from sale of other assets
|
|
|
212,929 |
|
|
|
154,409 |
|
|
7,800 |
|
|
|
- |
|
Proceeds
from issuance of shares in subsidiary
|
|
|
- |
|
|
|
7,800 |
|
|
96,368 |
|
|
|
165,922 |
|
Net
cash provided by (used in) investing activities
|
|
|
206,834 |
|
|
|
(164,564 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
179,508 |
|
|
|
- |
|
Proceeds
from long-term debt, net of fees paid
|
|
|
125,782 |
|
|
|
537,518 |
|
|
(155,901 |
) |
|
|
(1,571 |
) |
Repayments
of long-term debt
|
|
|
(165,108 |
) |
|
|
(420,925 |
) |
|
(6,536 |
) |
|
|
(28,974 |
) |
Repayment
of capital leases
|
|
|
(104,584 |
) |
|
|
(24,706 |
) |
|
(221,347 |
) |
|
|
(355,424 |
) |
Dividends
paid
|
|
|
(656,008 |
) |
|
|
(654,480 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(204,276 |
) |
|
|
(385,969 |
) |
Net
cash used in financing activities
|
|
|
(799,918 |
) |
|
|
(562,593 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
106,897 |
|
|
|
(140,658 |
) |
Net
(decrease) increase in cash and cash
equivalents
|
|
|
(28,749 |
) |
|
|
104,399 |
|
|
90,284 |
|
|
|
309,090 |
|
Cash
and cash equivalents at start of period
|
|
|
197,181 |
|
|
|
92,782 |
|
|
197,181 |
|
|
|
168,432 |
|
Cash
and cash equivalents at end of period
|
|
|
168,432 |
|
|
|
197,181 |
|
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
FRONTLINE
LTD.
(registrant)
Dated:
February 15, 2008
By:
/s/ Inger M.
Klemp
Inger
M.
Klemp
Principal
Financial
Officer
SK
02089 0009
855720