BUNKER INDEX :: Price Index, News and Directory Information for the Marine Fuel Industry



« News Home
:: Monthly Archive

News Topics
:: Air Pollution
:: Agreements & M&A's
:: Alternative Fuels
:: BunkerBlog
:: Cargoes & Storage
:: Company News
:: Efficiency, Costs & Charges
:: Environment
:: Events
:: Financial
:: Fuel Quality & Testing
:: Lubes & Additives
:: Oil Spills
:: People
:: Port News
:: Projects
:: Regulation, Legal
:: Services, Products,Technology
:: Statistics & Research
:: Vessels

Regional Archive
:: Americas
:: Asia/Oceania
:: Europe
:: M.East/Africa


BUNKER INDEX :: Price Index, News and Directory Information for the Marine Fuel Industry
Home » News





Frontline posts 69% rise in profit

22 Aug 2008 10:52 GMT

Rental rates could rise as ships run slower to reduce bunker costs.



Frontline Ltd, the world's largest independent oil tanker shipping group, has posted a 69 percent rise in profit for the second quarter of 2008.

The Bermuda-based company recorded an all-time high net income of $318.4 million, or $4.25 per share, compared with net income of $187.9 million, or $2.51 per share, in the prior-year quarter. Analysts had expected the company to make $339 million.

For the six months ended June 30th 2008, Frontline achieved a record profit of $539.4 million, or $7.21 per share, compared with $346.7 million for the first half of 2007.

Record oil production from the Organization of Petroleum Exporting Countries (OPEC) helped boost profits for the oil tanker owner. OPEC pumped a record average of 32.3 million barrels of crude a day during the months of April, May and June. However, fleet supply was curtailed by Iran using its vessels as floating oil storage rather than for deliveries as demand for Iranian crude reportedly dropped.

Voyage expenses, which also include bunker costs, rose by 51 percent in the second quarter of 2008 to $139.5 million from $87.8 million the previous year. First half-year voyage expenses increased by 54 percent from $177.4 million to $273.7 million in 2008.

Frontline has predicted its financial results for the third quarter will be negatively influenced by seven scheduled dry dockings. The company said its performance will also depend on the progress of the rental rate market over the coming months.

'The board expects good results for the third quarter, however the strength of the results will be dependent on the direction of the market in the remaining part of the quarter,' Frontline said.

Commenting on the decline in the cost of chartering tankers, Frontline said it was a "temporary negative development" which had been caused by lower U.S. oil demand, fewer West African cargoes and a drop in crude imports into China before the Olympic Games.

The company said demand for tankers could rise as ships decide to run their ships more slowly to conserve fuel and reduce bunker costs, which in turn would increase the need for ships. Higher crude oil production and build-ups in oil inventories would also help push up chartering rates.






Related Links:

K-Sea announces rise in net income
Odfjell profits hit by bunker costs
W. Wilhelmsen raises profit by $6.5m

Latest News:

Germany accepting online requests to fund conversions to LNG
Brittany Ferries secures financial backing for LNG-fuelled ferry newbuild
Trelleborg supplies solutions to world's first floating LNG ship-to-shore system
Singapore sets new 12-month bunker sales record as November volumes rise
Brent nearly hit upper sixties before retreating to $64
Oil and fuel oil hedging market update
Fujairah secures development capital, eyes growth
Algeciras receives first LNG bunker delivery in five years
Bunker supplier Skangas to source LNG from UK's Isle of Grain terminal
Brent around two-year-high as critical pipeline closes
Oil and fuel oil hedging market update
PT2SB lands $1.25bn financing for Malaysia terminal




Page Links:

Prices
Africa
Asia
Latin America
Middle East
North America
North Europe
South Europe
Index Summary
Price Highlights
Commentaries
Futures
Prices
Antwerp
Busan
Cape Town
Fujairah
Houston
Istanbul
Kaohsiung
Las Palmas
Maracaibo
New Orleans
Piraeus
Rio
Rotterdam
Santos
Singapore
News
Latest News
Blogs
Archive
Americas
Asia
Europe
Middle East
News
Air Pollution
Agreements & M&A's
Alternative Fuels
Cargoes & Storage
Efficiency, Costs & Charges
Environment
Events
Financial
Fuel Quality
Lubes & Additives
Oil Spills
People
Port News
Projects
Regulation/Legal
Services, Products, Technology
Statistics & Research
Vessels
Contact & Terms
Contact Us
Advertise
Terms & Conditions
Privacy Policy
Events
Upcoming Events