d1000012_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: May 2009
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): [ ].
Note: Regulation S-T Rule
101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely
to provide an attached annual report to security holders.
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): [ ].
Note: Regulation S-T Rule
101(b)(7) only permits the submission in paper of a Form 6-K if submitted to
furnish a report or other document that the registrant foreign private issuer
must furnish and make public under the laws of the jurisdiction in which the
registrant is incorporated, domiciled or legally organized (the registrant's
"home country"), or under the rules of the home country exchange on which the
registrant's securities are traded, as long as the report or other document is
not a press release, is not required to be and has not been distributed to the
registrant's security holders, and, if discussing a material event, has already
been the subject of a Form 6-K submission or other Commission filing on
EDGAR.
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 May 27, 2009, announcing the Company's financial results for the first
quarter of 2009.
Exhibit
1
FRONTLINE
LTD.
FIRST
QUARTER 2009 RESULTS
Highlights
|
·
|
Frontline
reports net income of $76.6 million and earnings per share of $0.98 for
the first quarter of 2009. |
|
·
|
Frontline
announces a cash dividend of $0.25 per share for the first quarter of
2009. |
|
·
|
The
second VLCC newbuilding from Waigaoqiao, Front Queen, was delivered on May
18, 2009. |
|
·
|
Frontline
enters into agreement with two ship yards to cancel four Suezmax and two
VLCC newbuilding contracts representing 33 percent of the newbuilding
program and a total contractual cost of $556
million.
|
|
·
|
Frontline
secures long term pre- and post delivery financing for two further VLCC
newbuildings in an amount of $146.4 million, representing 70 percent of
contractual cost.
|
|
·
|
Frontline
amends the time charter agreements on Front Lady and Front Highness to
bareboat charters and extends the periods to mid 2011. The vessels will be
operated as floating storage units and will cease to trade as regular
tankers.
|
First
Quarter 2009 Results
The Board
of Frontline Ltd. (the "Company" or "Frontline") announces net income of $76.6
million for the first quarter of 2009, equivalent to earnings per share of $0.98
compared with net income of $51.6 million for the fourth quarter of 2008,
equivalent to earnings per share of $0.66. Net operating income for the quarter
was $111.0 million compared with $115.3 million in the fourth quarter of
2008.
The
reported earnings reflect a weaker spot market. The average daily time charter
equivalents ("TCEs") earned in the spot and period market in the first quarter
by the Company's VLCCs, Suezmax tankers and Suezmax OBO carriers were $50,300,
$37,900 and $44,200, respectively, compared with $54,100, $41,900 and $42,800,
respectively, in the fourth quarter of 2008. 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 $56,200 and
$38,300 in the first quarter, compared to $59,800 and $43,400 in the fourth
quarter of 2008.
Profit
share expense of $14.5 million has been recorded in the first quarter as a
result of the profit sharing agreement with Ship Finance International Limited
("Ship Finance") compared to $15.7 million in the fourth quarter of 2008. Ship
operating expenses decreased by $6.5 million compared to the fourth quarter, due
to an increase in operating costs offset by a $10.6 million decrease in
drydocking costs. Charter hire expenses were $52.0 million in the first quarter
compared with $56.0 million in the fourth quarter in 2008.
Interest
income was $6.1 million in the first quarter, of which $4.7 million relates to
restricted deposits held by subsidiaries reported in Independent Tankers
Corporation Limited ("ITCL"). Interest expense, net of capitalized interest, was
$40.6 million in the first quarter of which $9.9 million relates to
ITCL.
Other
non-operating items in the first quarter was a gain of $1.2 million compared
with a loss of $28.4 million in the fourth quarter, which was mainly due to a
loss of $27.6 million following a market price adjustment of the Overseas
Shipholding Group Inc. ("OSG") shares owned by the Company. The market price
adjustment on the OSG shares in the first quarter was a loss of $27.4 million
which was booked directly to equity as the OSG shares were not deemed to be
impaired at March 31, 2009.
At March
31, 2009, the Company had total cash and cash equivalents of $666.2 million,
which includes $459.6 million of restricted cash. Restricted cash includes
$264.5 million relating to deposits in ITCL and $189.6 million in Frontline,
which is restricted under the charter agreements with Ship Finance. The Company
has reclassified some of its restricted cash balances to long term. These
balances relate to the restricted cash in some of its ITCL subsidiaries that are
segregated for the settlement of long term lease obligations. The amount
reclassified as of March 31, 2008 to conform to the current year presentation
was $246.6 million.
In May
2009, the Company has average total cash cost breakeven rates on a TCE basis for
VLCC and Suezmax tankers of approximately $32,400 and $25,300, respectively.
These are the daily rates our vessels must earn to cover budgeted operating
costs, estimated interest expenses and scheduled loan principal repayments,
bareboat hire and corporate overhead costs. These rates do not take into account
capital expenditures or loan balloon repayments at maturity. Furthermore, M/T
Kensington, M/T Hampstead and the five Genmar vessels chartered in are not
included in the cash cost break even rates.
Fleet
Development
In
December 2008, Frontline entered into an agreement with Teekay Corporation to
commercially combine their Suezmax tankers within the Gemini Pool, the world's
largest Suezmax tanker pool. Frontline's vessels entered the pool between 8
January and 12 February 2009.
In
January 2009, Frontline entered into an agreement with Shell to charter out the
two double hull Suezmax tankers Genmar Phoenix and Genmar Harriet G. on
timecharter for the balance period of existing charters basis a floating time
charter.
The OBO
Front Striver's time charter party with Glorywealth Shipping was terminated
prematurely by the charterers. Frontline has raised a claim, which will proceed
to arbitration. The Company has decided to drydock the vessel prematurely in May
(originally scheduled for docking in September, 2009) and upon completion of the
drydock the vessel has been fixed for a five to seven months time
charter.
In April
2009, Frontline entered into agreement with the charterer of Front Lady and
Front Highness to amend the time charter agreements to bareboat agreements and
extend the contracts for one additional year from the single hull phase out date
in 2010 to around April 2011 and August 2011, respectively. The vessels will be
operated as floating storage units (FSU) and will cease to trade as regular
tankers. The vessels will be renamed "Ticen Ocean" and "Ticen Sun" and the
charterers will assume the drydocking costs for Front Lady.
Newbuilding
Program
As
announced in the fourth quarter of 2008, Frontline's newbuilding program
consisted of eight Suezmax tankers being built at Jiangsu Rongsheng Heavy
Industries Co., Ltd. ("Rongsheng") ship yard, four VLCCs being built at Shanghai
Waigaoqiao Shipbuilding Company Ltd. ("Waigaoqiao") ship yard and six VLCCs
being built at Zoushan Jinhaiwan ship yard ("Jinhaiwan"). The first VLCC from
Waigaoqiao, Front Kathrine, was delivered on January 8, 2009, more than two
months before contract delivery. The second VLCC from the same yard, Front
Queen, was delivered on May 18, 2009, also ahead of contract delivery
date.
Frontline
is pleased to announce that we have reached mutual agreements with two ship
yards to cancel four Suezmax and two VLCC newbuilding contracts, representing a
total contractual cost of $556 million or 33 percent of our newbuilding
program.
The
instalments already paid on the cancelled newbuildings will be applied to and
set off against future payments on the remaining newbuildings.
Financing
The total
number of vessels in Frontline's newbuilding program, after the cancellations
described above, is four Suezmax tankers and seven VLCCs, which constitutes a
contractual cost of $1,135.8 million. This includes Front Queen which was
delivered May 18, 2009. As of March 31, 2009, a total of $394 million in
installments has been paid on the newbuildings, compared with $428 million at
the end of the fourth quarter, which also included installments on Front
Kathrine delivered in the first quarter of 2009. The remaining installments to
be paid for the newbuildings amount to $741.8 million or 65 percent of total
contractual cost, with expected payments of approximately $199.3 million, $272.5
million, $216.0 million and $54.0 million in 2009, 2010, 2011 and 2012,
respectively.
Frontline
has secured a long term pre- and post-delivery newbuilding financing in the
amount of $420 million representing 80 percent of the contractual cost of the
four newbuildings being built at Rongsheng and the two first of the newbuildings
being built at Waigaoqiao, whereof two newbuildings have already been delivered.
As of March 31, 2009, $184.4 million has been drawn under this facility. We
expect to draw a further $182.7 million in 2009 and the remaining balance in
2010.
The
Company has further secured long term pre- and post- delivery newbuilding
financing in an amount of $146.4 million, representing 70 percent of the
contractual cost of the last two newbuildings being built at Waigaoqiao ship
yard.
The
Company has in view of its overall financial strength and particularly cashflow
from existing contracts decided to wait with respect to establishing long term
mortgage financing for the four VLCCs being built at Jinhaiwan ship yard. These
vessels will not be delivered until the second half of 2011 and the first half
of 2012. However the Board will continuously monitor the financing market and
seek solutions whereby Frontline's dedication to a high dividend payout ratio
can be kept.
Corporate
and Other Matters
The Board
has decided to employ Acting CEO Jens Martin Jensen as permanent CEO of
Frontline Management AS. Jens Martin Jensen has as Acting CEO of Frontline
Management AS shown a high degree of professionalism in this work and the Board
particularly wants to thank him for his huge contribution to reduce Frontline's
newbuilding commitment.
On May
27, 2009, the Board declared a dividend of $0.25 per share. The record date for
the dividend is June 9, 2009, ex dividend date is June 5, 2009 and the dividend
will be paid on or about June 23, 2009.
77,858,502
ordinary shares were outstanding as of March 31, 2009, and the weighted average
number of shares outstanding for the quarter was 77,858,502.
The
Market
The
average market rate for VLCCs from MEG to Japan in the first quarter of 2009 was
approximately WS 47 ($44,000 per day) compared to approximately WS 84 ($61,500
per day) in the fourth quarter of 2008. The average rate for Suezmaxes from WAF
to USAC in the first quarter of 2009 was approximately WS 78 ($41,400 per day),
compared to approximately WS 145 ($56,000 per day) in the fourth quarter of
2008.
Bunkers
at Fujairah averaged approximately $250/mt in the first quarter of 2009 with a
high of approximately $280/mt in early January and a low of approximately
$226/mt mid March. On May 27, 2009 the quoted bunkers price in Fujairah was
$353/mt.
The
International Energy Agency ("IEA") reported in May 2009 an average OPEC oil
production, including Iraq, of 28.4 million barrels per day during the first
quarter of the year, a decrease of about 2.2 million barrels per day from the
fourth quarter of 2008. The next and 153rd OPEC
meeting is scheduled to take place on May 28th,
2009.
IEA
further estimates that world oil demand averaged 83.8 million barrels per day in
the first quarter of 2009, 1.14 million barrels less than in the fourth quarter
of 2008. IEA predicts that the average demand for 2009 in total will be 83.2
million barrels per day, a 3 percent decline from 2008. However, China is
reporting y-o-y crude import growth.
According
to figures released in April 2009 by The International Monetary Fund, or ‘IMF',
the World Trade Volume had a 3.3 percent increase in 2008. However, IMF forecast
that the World Trade Volume will see a decline of 11 percent in 2009.
Furthermore, World GDP increased with 3.2 percent in 2008 and is forecast to
decline with 1.3 percent throughout 2009. In 2008 the U.S had a 1.1 percent
growth in the GDP, which is estimated to decline with 2.8 percent throughout
2009. China's 2008 GDP increased with 9 percent year-on-year, and is forecast to
have a 6.5 percent increase through 2009. Negative growth is expected in Europe
and Japan while emerging markets and developing countries will experience a
continued decrease in their growth figures.
According
to Fearnleys, the VLCC fleet totalled 519 vessels at the end of the first
quarter with 19 deliveries during the quarter. Throughout 2009 it is expected
that a total of 68 VLCC deliveries will take place. The total order book
amounted to 210 vessels at the end of the first quarter, down from 230 vessels
after the fourth quarter of 2008. The current orderbook represents about 40
percent of the VLCC fleet. One vessel was sold for demolition during the quarter
and no VLCCs have been ordered since October, 2008. There was, however, one
cancellation. The single hull fleet amounted to 108 vessels at the end of the
first quarter.
The
Suezmax fleet totalled 361 vessels at the end of the quarter, up from 351
vessels after the fourth quarter of 2008. 10 Suezmax tankers were delivered
during the quarter, whilst no deletions or orders took place. The total
orderbook amounted to 158 vessels at the end of the quarter, a decrease of 10
from the end of the fourth quarter of 2008. There are 72 deliveries expected in
2009 according to Fearnleys however, delays to delivery schedules are expected
and the orderbook represents approximately 44 percent of the current Suezmax
fleet. The single hull fleet totalled 37 vessels at the end of the first
quarter.
Strategy
Frontline's
core strategy is to maintain and expand its position as a world leading operator
and charterer of modern, high quality oil tankers. Our principal focus is the
transportation of crude oil and its related refined dirty petroleum cargoes for
major oil companies and major oil trading companies. We seek to optimize our
income and adjust our exposure through actively pursuing charter opportunities
be it through time charters, bareboat charters, sale and leasebacks, straight
sales and purchases of vessels, newbuilding contracts and
acquisitions.
We
presently operate VLCCs and Suezmax vessels in the tanker market and OBO vessels
in the dry cargo market. Our strategy is to have at least 30 percent fixed
charter coverage for our fleet, predominantly through time charters and trade
the balance of the fleet in the spot market. We focus on minimizing time spent
on ballast by "cross trading" from either the Caribbean or West Africa to the
Far East/Indian Ocean. We are of the opinion that operating a certain number of
vessels in the spot market, enables us to capitalize on a potential stronger
spot market as well as to serve our main customers on a regular non term basis.
We believe the size of our fleet is important in negotiating terms with our
major clients and charterers. We also think that our large, high-quality VLCC
and Suezmax fleet enhances our ability to obtain competitive terms from
suppliers, ship repairers and builders and to produce cost savings in chartering
and operations.
All but
two of our remaining single hull VLCCs and one Suezmax tanker have been fixed
out on time charters, with redelivery coinciding with the vessels phase out date
or mid 2011 for two of the vessels. We continue to evaluate opportunities
in the time charter market. As of May 27, 2009 approximately 52 percent of our
remaining operating days for our total fleet for 2009 was on fixed and floating
time charter and bareboat charter.
It is an
important part of Frontline's strategy to optimize the value of its assets. This
has successfully been done through the creation and later spin off of Sea
Production and Sealift. The large increase in tanker supply the next years might
force tanker owners to think untraditionally in order to maximize profitability.
Frontline will continue these efforts with focus on alternative use,
particularly for the single hull tonnage. Such a strategy might particularly in
the current oil Contango environment create additional upside for the
shareholders.
Our goal
is to pay out surplus cash to our shareholders and to generate competitive
returns for our shareholders with quarterly dividend payments. Our dividend
payments are based on present earning, market prospects, current capital
expenditure program as well as investment opportunities.
Outlook
The start
of the year in the tanker market was better than expected, mainly due to reduced
supply as a function of the increased storage activities. Towards the end of the
first quarter spot freight rates diminished and earnings gradually shrank.
Persisting low fuel prices, however, contributed positively to all owners.
Additionally, the persistent presence of tanker storage demand supported by
contango in the oil market together with port strikes, cancellations and delays
in the newbuilding schedule, all contributed to a leveled tonnage list and thus
livable earnings. Today some 55 to 60 VLCC tankers are estimated to be on
storage. In addition, we also see other ship sizes used for storage. This
development has continued into the second quarter.
Average
daily rates for modern VLCC's have according to Clarkson been $24,700 so far in
the second quarter compared to $130,700 for the entire second quarter in
2008.
Going
forward the tanker industry is exposed to a decrease in projected oil
consumption by 3.0 percent in 2009 according to IEA, further cuts in OPEC
production, US crude inventories at seasonal highs and a record amount of
expected tanker deliveries in the next 12 months. Factors that could somewhat
improve these weak fundamentals are delays in delivery schedules at the yards,
cancellations of newbuilding orders and scrapping of single hull vessels due to
phase out. A further positive factor is that China's crude imports rose 13.5
percent y-o-y in April, or 3.96 million barrels per day, the second highest
daily rate on record, having risen 2.2 percent on a daily basis from March
levels, according to the latest data from China Customs. The storage economic is
also likely to continue to give strong fundamental support to the trading
market.
We have
the ability to adjust our exposure to the market in 2010 and 2011 through our
options to redeliver sevensingle hull VLCCs to Ship Finance, the single hull
Suezmax tanker Front Voyager to ITCL and we may not exercise our purchase
options on three double hull VLCCs which come to the end of their long term
leases at the end of this year.
Frontline
has so far in the second quarter achieved earnings which are better than
relevant market indexes. A total of six of Frontlines VLCC's are currently
involved in medium term storage projects, which together with the vessels on
long term charter creates a good protection against the current weak spot
market.
The
Company's fixed charter coverage is estimated to be 40 percent and 27 percent of
the fleet in 2009 and 2010, respectively. The reduced newbuilding program, the
additional committed financing, the low cash cost breakeven rates and the large
cash deposits for the vessels on long term lease reduces the financial risk and
creates a good platform for cash generation.
The
increased volatility in the market is likely to create interesting opportunities
for growth and consolidation. Frontline should be well positioned to benefit
from these opportunities.
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, dry-docking 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.
The Board
of Directors
Frontline
Ltd.
Hamilton,
Bermuda
May 27,
2009
Questions
should be directed to:
Jens Martin
Jensen: 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 FIRST QUARTER REPORT (UNAUDITED)
INCOME
STATEMENT
(in
thousands of $)
|
|
|
2009
Jan-Mar
|
|
|
2008 Jan-Mar
|
|
|
|
2008
Jan-Dec
(audited
|
) |
Total
operating revenues
|
|
|
356,601 |
|
|
527,733 |
|
|
|
2,104,018 |
|
Gain
on sale of assets
|
|
|
- |
|
|
15,532 |
|
|
|
142,293 |
|
Voyage
expenses and commission
|
|
|
64,193 |
|
|
134,186 |
|
|
|
592,188 |
|
Profit
share expense
|
|
|
14,487 |
|
|
33,670 |
|
|
|
110,962 |
|
Ship
operating expenses
|
|
|
48,613 |
|
|
39,509 |
|
|
|
213,766 |
|
Charterhire
expenses
|
|
|
51,976 |
|
|
38,821 |
|
|
|
220,170 |
|
Administrative
expenses
|
|
|
8,255 |
|
|
6,892 |
|
|
|
35,226 |
|
Depreciation
|
|
|
58,116 |
|
|
54,779 |
|
|
|
223,519 |
|
Total
operating expenses
|
|
|
245,640 |
|
|
307,857 |
|
|
|
1,395,831 |
|
Net
operating income
|
|
|
110,961 |
|
|
235,408 |
|
|
|
850,480 |
|
Interest
income
|
|
|
6,073 |
|
|
10,862 |
|
|
|
41,204 |
|
Interest
expense
|
|
|
(40,620 |
) |
|
(47,932 |
) |
|
|
(183,925 |
) |
Share
of results from associated companies
|
|
|
(164 |
) |
|
(120 |
) |
|
|
(901 |
) |
Foreign
currency exchange (loss) gain
|
|
|
(109 |
) |
|
85 |
|
|
|
1,565 |
|
Other
non-operating items
|
|
|
1,161 |
|
|
22,847 |
|
|
|
(7,159 |
) |
Net
income before taxes and noncontrolling interest
|
|
|
77,302 |
|
|
221,150 |
|
|
|
701,264 |
|
Taxes
|
|
|
2 |
|
|
- |
|
|
|
(310 |
) |
Net
income attributable to noncontrolling interest
|
|
|
(686 |
) |
|
(176 |
) |
|
|
(2,184 |
) |
Net
income
|
|
|
76,618 |
|
|
220,974 |
|
|
|
698,770 |
|
Basic
earnings per share ($)
|
|
|
$0.98 |
|
|
$2.95 |
|
|
|
$9.15 |
|
Income
on timecharter basis ($ per day per vessel)*
|
|
|
|
|
|
|
|
|
|
|
|
VLCC
|
|
|
50,300 |
|
|
82,400 |
|
|
|
74,500 |
|
Suezmax
|
|
|
37,900 |
|
|
51,600 |
|
|
|
55,200 |
|
Suezmax
OBO
|
|
|
44,200 |
|
|
43,200 |
|
|
|
43,500 |
|
|
*Basis
= Calendar days minus off-hire. Figures after deduction of broker
commission
|
BALANCE SHEET
(in thousands of
$)
|
|
2009
Mar 31
|
|
|
2008
Mar
31
|
|
|
2008
Dec 31
(audited
|
) |
ASSETS
|
|
|
|
|
|
|
|
|
|
Short
term
|
|
|
|
|
|
|
|
|
|
Cash
and cash equivalents
|
|
|
206,577 |
|
|
|
128,711 |
|
|
|
190,819 |
|
Restricted
cash
|
|
|
334,453 |
|
|
|
391,635 |
|
|
|
370,078 |
|
Other
current assets
|
|
|
236,181 |
|
|
|
288,549 |
|
|
|
260,465 |
|
Long
term
|
|
|
|
|
|
|
|
|
|
|
|
|
Restricted
cash
|
|
|
125,126 |
|
|
|
246,586 |
|
|
|
184,673 |
|
Newbuildings
|
|
|
420,512 |
|
|
|
198,796 |
|
|
|
454,227 |
|
Vessels
and equipment, net
|
|
|
598,233 |
|
|
|
206,146 |
|
|
|
438,161 |
|
Vessels
under capital lease, net
|
|
|
1,992,792 |
|
|
|
2,263,432 |
|
|
|
2,100,717 |
|
Investment
in unconsolidated subsidiaries and associated companies
|
|
|
4,302 |
|
|
|
5,513 |
|
|
|
4,467 |
|
Other
long-term assets
|
|
|
23,877 |
|
|
|
20,086 |
|
|
|
24,121 |
|
Total
assets
|
|
|
3,942,053 |
|
|
|
3,749,454 |
|
|
|
4,027,728 |
|
LIABILITIES
AND EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Short
term liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Short
term debt and current portion of long term debt
|
|
|
323,247 |
|
|
|
102,484 |
|
|
|
293,471 |
|
Current
portion of obligations under capital lease
|
|
|
170,474 |
|
|
|
265,908 |
|
|
|
243,293 |
|
Other
current liabilities
|
|
|
133,317 |
|
|
|
301,890 |
|
|
|
174,166 |
|
Long
term liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Long
term debt
|
|
|
616,467 |
|
|
|
373,663 |
|
|
|
614,676 |
|
Obligations
under capital lease
|
|
|
1,931,318 |
|
|
|
2,179,785 |
|
|
|
1,969,919 |
|
Other
long term liabilities
|
|
|
27,059 |
|
|
|
29,927 |
|
|
|
23,349 |
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Frontline
Ltd. stockholders' equity
|
|
|
732,848 |
|
|
|
491,169 |
|
|
|
702,217 |
|
Noncontrolling
interest
|
|
|
7,323 |
|
|
|
4,628 |
|
|
|
6,637 |
|
Total
liabilities and equity
|
|
|
3,942,053 |
|
|
|
3,749,454 |
|
|
|
4,027,728 |
|
STATEMENT OF CASHFLOWS
(in
thousands of $)
|
|
2009
Jan-Mar
|
|
|
2008
Jan-Mar
|
|
|
2008
Jan-Dec
(audited
|
) |
OPERATING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Net
income attributable to Frontline Ltd.
|
|
|
76,618 |
|
|
|
220,974 |
|
|
|
698,770 |
|
Adjustments
to reconcile net income attributable to Frontline Ltd. to net cash
provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
and amortization
|
|
|
58,361 |
|
|
|
54,782 |
|
|
|
224,069 |
|
Unrealized
foreign currency exchange (gain) loss
|
|
|
(7 |
) |
|
|
56 |
|
|
|
(2,172 |
) |
Gain
on sale of assets (including securities)
|
|
|
- |
|
|
|
(33,491 |
) |
|
|
(160,031 |
) |
Results
from associated companies
|
|
|
164 |
|
|
|
120 |
|
|
|
901 |
|
Adjustment
of derivatives and securities to market value
|
|
|
- |
|
|
|
(3,578 |
) |
|
|
41,379 |
|
Noncontrolling
interest
|
|
|
686 |
|
|
|
176 |
|
|
|
2,184 |
|
Other,
net
|
|
|
(5,798 |
) |
|
|
(2,303 |
) |
|
|
(17,325 |
) |
Change
in operating assets and liabilities
|
|
|
(39,128 |
) |
|
|
(26,193 |
) |
|
|
19,480 |
|
Net
cash provided by operating activities
|
|
|
90,896 |
|
|
|
210,543 |
|
|
|
807,255 |
|
INVESTING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Maturity
(placement) of restricted cash
|
|
|
91,643 |
|
|
|
13,157 |
|
|
|
(2,579 |
) |
Additions
to newbuildings, vessels and equipment
|
|
|
(70,945 |
) |
|
|
(53,027 |
) |
|
|
(637,895 |
) |
Dividends
received from associated companies
|
|
|
- |
|
|
|
- |
|
|
|
265 |
|
Proceeds
from issuance of shares in subsidiary
|
|
|
- |
|
|
|
10,941 |
|
|
|
10,941 |
|
Purchase
of other assets
|
|
|
- |
|
|
|
(38,520 |
) |
|
|
(109,360 |
) |
Proceeds
from sale of vessels and equipment
|
|
|
- |
|
|
|
21,416 |
|
|
|
128,264 |
|
Proceeds
from sale of other assets
|
|
|
- |
|
|
|
- |
|
|
|
3,286 |
|
Net
provided by (cash used in) investing activities
|
|
|
20,698 |
|
|
|
(46,033 |
) |
|
|
(607,078 |
) |
FINANCING
ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds
from long-term debt, net of fees paid
|
|
|
47,627 |
|
|
|
5,438 |
|
|
|
515,250 |
|
Repayments
of long-term debt
|
|
|
(16,060 |
) |
|
|
(2,825 |
) |
|
|
(87,370 |
) |
Repayment
of capital leases
|
|
|
(107,937 |
) |
|
|
(43,223 |
) |
|
|
(171,900 |
) |
Net
proceeds from share issuances
|
|
|
- |
|
|
|
- |
|
|
|
208,123 |
|
Dividends
paid
|
|
|
(19,466 |
) |
|
|
(163,621 |
) |
|
|
(641,893 |
) |
Net
cash used in financing activities
|
|
|
(95,836 |
) |
|
|
(204,231 |
) |
|
|
(177,790 |
) |
Net
increase (decrease) in cash and cash equivalents
|
|
|
15,758 |
|
|
|
(39,721 |
) |
|
|
22,387 |
|
Cash
and cash equivalents at start of period
|
|
|
190,819 |
|
|
|
168,432 |
|
|
|
168,432 |
|
Cash
and cash equivalents at end of period
|
|
|
206,577 |
|
|
|
128,711 |
|
|
|
190,819 |
|
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: May 28,
2009 |
By: |
/s/ Inger
M.
Klemp |
|
|
|
Inger M.
Klemp |
|
|
|
Principal Financial
Officer |
|
|
|
|
|
|
|
|
|
|
|
|
|