Frontline Q3 opg misses consensus on 'substantially weaker' spot market UPDATE |
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Thu, 15 Nov 2007 08:55
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(Updates with outlook)OSLO (Thomson Financial) - Frontline posted third quarter operating profits well below expectations, blaming a 'substantially weaker' spot market during the quarter for the disappointment.For the third quarter profits at the operating level came in at 66.9 mln usd, down from a restated 187.6 mln last year, and well below the 81 mln consensus forecast of analysts polled by TDN Finans.Net income came in at 24.2 mln usd, down from 98.8 mln last year, and also below the consensus forecast, which was for 30 mln.This left earnings-per-share at 0.32 usd, down from 1.32 at the same point the previous year, and below the 0.40 figure penciled in by analysts.Shipping giant Frontline said the lower-than-expected figures are flect a substantially weaker spot market'.The average daily time charter equivalents earned in the spot and period market by the company's VLCCs, Suezmax tankers and Suezmax OBO carriers were 36,000 usd, 25,000 usd and 41,300 usd during the quarter.This, Frontline said, compares to figures of 51,500 usd, 38,600 usd and 38,300 usd respectively in the second quarter.'The results show a continued differential in earnings between single and double hull tonnage,' the firm said.Looking ahead, Frontline said the tanker market has continued to be weak into the fourth quarter.'We expect a net result from operations in the fourth quarter, based on today's market, which is in line with the third quarter,' it said.alastair.reed@thomson.comar/lamCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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Frontline Q3 opg misses consensus on 'substantially weaker' spot market 