|
|
FRONTLINE PLC
(registrant)
|
||
|
|
|
||
Dated: December 1, 2023
|
|
By:
|
/s/ Inger M. Klemp
|
|
|
|
|
Name: Inger M. Klemp
|
|
|
|
|
Title: Principal Financial Officer
|
|
|
|
|
||
|
|
|
• |
Profit of $107.7 million, or $0.48 per basic and diluted share for the third quarter of 2023.
|
• |
Adjusted profit of $80.8 million, or $0.36 per basic and diluted share for the third quarter of 2023.
|
• |
Declared a cash dividend of $0.30 per share for the third quarter of 2023.
|
• |
Reported revenues of $377.1 million for the third quarter of 2023.
|
• |
Announced agreement for an integrated solution to the strategic and structural deadlock in Euronav NV (“Euronav”).
|
• |
Closed the sale of 13.7 million shares of Euronav to CMB NV for proceeds of $252.0 million.
|
• |
Entered into agreements with Euronav to purchase 24 VLCCs with an average age of 5.3 years, for an aggregate purchase price of $2,350.0
million from Euronav (the “Acquisition”). All agreements are effective, and a majority of the vessels are expected to be delivered in the fourth quarter of 2023 and the balance of
the vessels are expected to be delivered in the first quarter of 2024.
|
• |
Entered into a senior secured term loan facility with a group of our relationship banks in November 2023 in an
amount of up to $1,410.0 million and a shareholder loan from Hemen Holding Ltd., the Company’s largest shareholder (“Hemen”),
in an amount up to $539.9 million to partly finance the Acquisition.
|
($ per day)
|
Spot TCE
|
Spot TCE estimates
|
% Covered
|
Estimated average daily cash breakeven rates
|
||||
2023
|
Q3 2023
|
Q2 2023
|
Q4 2022
|
2022
|
Q4 2023
|
2023
|
||
VLCC
|
52,900
|
42,500
|
64,000
|
63,200
|
31,300
|
48,100
|
81%
|
28,200
|
Suezmax
|
54,600
|
37,600
|
61,700
|
57,900
|
37,100
|
50,300
|
70%
|
25,700
|
LR2 / Aframax
|
48,000
|
33,900
|
52,900
|
58,800
|
38,500
|
51,300
|
70%
|
17,100
|
2022
Jul-Sep
|
2023
Jul-Sep
|
CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
(in thousands of $, except per share data)
|
2023
Jan-Sep
|
2022
Jan-Sep
|
2022
Jan-Dec
|
382,186
|
377,085
|
Revenues
|
1,387,180
|
900,067
|
1,430,208
|
1,944
|
400
|
Other operating income
|
24,080
|
7,589
|
8,040
|
384,130
|
377,485
|
Total revenues and other operating income
|
1,411,260
|
907,656
|
1,438,248
|
173,343
|
145,051
|
Voyage expenses and commission
|
460,488
|
428,249
|
605,544
|
43,445
|
44,102
|
Ship operating expenses
|
131,592
|
128,312
|
175,164
|
13,451
|
15,298
|
Administrative expenses
|
39,637
|
29,218
|
47,374
|
41,508
|
58,282
|
Depreciation
|
170,924
|
122,288
|
165,170
|
—
|
—
|
Contingent rental income
|
—
|
(623)
|
(623)
|
271,747
|
262,733
|
Total operating expenses
|
802,641
|
707,444
|
992,629
|
112,383
|
114,752
|
Net operating income
|
608,619
|
200,212
|
445,619
|
211
|
3,800
|
Finance income
|
11,528
|
410
|
1,479
|
(9,739)
|
(38,110)
|
Finance expense
|
(115,917)
|
(11,912)
|
(45,330)
|
47,072
|
17,883
|
Gain (loss) on marketable securities
|
(6,085)
|
35,336
|
58,359
|
5,652
|
(1,690)
|
Share of results of associated company
|
3,265
|
11,611
|
14,243
|
866
|
11,112
|
Dividends received
|
36,612
|
1,037
|
1,579
|
156,445
|
107,747
|
Profit before income taxes
|
538,022
|
236,694
|
475,949
|
(204)
|
(4)
|
Income tax benefit (expense)
|
21
|
(210)
|
(412)
|
156,241
|
107,743
|
Profit for the period
|
538,043
|
236,484
|
475,537
|
$0.70
|
$0.48
|
Basic and diluted earnings per share
|
$2.42
|
$1.12
|
$2.22
|
2022
Jul-Sep
|
2023
Jul-Sep
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands of $)
|
2023
Jan-Sep
|
2022
Jan-Sep
|
2022
Jan-Dec
|
156,241
|
107,743
|
Profit for the period
|
538,043
|
236,484
|
475,537
|
Items that may be reclassified to profit or loss:
|
|||||
72
|
(52)
|
Foreign currency exchange gain (loss)
|
79
|
268
|
226
|
72
|
(52)
|
Other comprehensive income (loss)
|
79
|
268
|
226
|
156,313
|
107,691
|
Comprehensive income
|
538,122
|
236,752
|
475,763
|
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in thousands of $)
|
Sep 30
2023
|
Dec 31
2022
|
ASSETS
|
||
Current assets
|
||
Cash and cash equivalents
|
285,384
|
254,525
|
Marketable securities
|
230,196
|
236,281
|
Other current assets
|
340,225
|
390,244
|
Total current assets
|
855,805
|
881,050
|
Non-current assets
|
||
Newbuildings
|
—
|
47,991
|
Vessels and equipment
|
3,564,317
|
3,650,652
|
Right-of-use assets
|
2,462
|
3,108
|
Goodwill
|
112,452
|
112,452
|
Investment in associated company
|
12,269
|
16,302
|
Loan notes receivable
|
—
|
1,388
|
Other non-current assets
|
52,710
|
55,500
|
Total non-current assets
|
3,744,210
|
3,887,393
|
Total assets
|
4,600,015
|
4,768,443
|
LIABILITIES AND EQUITY
|
||
Current liabilities
|
||
Short-term debt and current portion of long-term debt
|
365,035
|
277,854
|
Current portion of obligations under leases
|
1,090
|
1,024
|
Other current payables
|
110,816
|
112,781
|
Total current liabilities
|
476,941
|
391,659
|
Non-current liabilities
|
||
Long-term debt
|
1,890,141
|
2,112,460
|
Obligations under leases
|
1,675
|
2,372
|
Other non-current payables
|
5,378
|
2,053
|
Total non-current liabilities
|
1,897,194
|
2,116,885
|
Equity
|
||
Frontline plc equity
|
2,226,352
|
2,260,371
|
Non-controlling interest
|
(472)
|
(472)
|
Total equity
|
2,225,880
|
2,259,899
|
Total liabilities and equity
|
4,600,015
|
4,768,443
|
2022
Jul-Sep
|
2023
Jul-Sep
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of $)
|
2023
Jan-Sep
|
2022
Jan-Sep
|
2022
Jan-Dec
|
OPERATING ACTIVITIES
|
|||||
156,241
|
107,743
|
Profit for the period
|
538,043
|
236,484
|
475,537
|
Adjustments to reconcile profit to net cash provided by operating activities:
|
|||||
9,528
|
34,310
|
Net finance expense
|
104,388
|
11,502
|
43,851
|
41,508
|
58,282
|
Depreciation
|
170,924
|
122,288
|
165,170
|
—
|
—
|
Gain on sale of vessels and equipment
|
(21,960)
|
(4,618)
|
(4,596)
|
(47,072)
|
(17,883)
|
(Gain) loss on marketable securities
|
6,085
|
(35,336)
|
(58,359)
|
(5,652)
|
1,690
|
Share of results of associated company
|
(3,265)
|
(11,611)
|
(14,243)
|
620
|
4,936
|
Other, net
|
15,594
|
(1,220)
|
2,376
|
(60,967)
|
41,947
|
Change in operating assets and liabilities
|
41,031
|
(98,239)
|
(142,112)
|
(2,667)
|
(11)
|
Debt issuance costs paid
|
(1,336)
|
(3,878)
|
(4,349)
|
(20,234)
|
(38,398)
|
Interest paid
|
(121,579)
|
(52,519)
|
(83,039)
|
132
|
9,916
|
Interest received
|
27,761
|
320
|
5,094
|
71,437
|
202,532
|
Net cash provided by operating activities
|
755,686
|
163,173
|
385,330
|
INVESTING ACTIVITIES
|
|||||
(84,328)
|
(236)
|
Additions to newbuildings, vessels and equipment
|
(153,516)
|
(253,931)
|
(335,815)
|
—
|
—
|
Proceeds from sale of vessels
|
142,740
|
80,000
|
80,000
|
(1,505)
|
—
|
Investment in associated company
|
—
|
(1,505)
|
(1,505)
|
—
|
—
|
Cash inflow on repayment of loan to associated company
|
1,388
|
—
|
—
|
(85,833)
|
(236)
|
Net cash used in investing activities
|
(9,388)
|
(175,436)
|
(257,320)
|
FINANCING ACTIVITIES
|
|||||
317,433
|
—
|
Proceeds from issuance of debt
|
259,375
|
551,433
|
651,248
|
(295,276)
|
(45,417)
|
Repayment of debt
|
(402,042)
|
(518,546)
|
(597,834)
|
(216)
|
(220)
|
Repayment of obligations under leases
|
(631)
|
(1,885)
|
(2,123)
|
—
|
—
|
Lease termination payments
|
—
|
(4,456)
|
(4,456)
|
—
|
(178,098)
|
Dividends paid
|
(572,141)
|
—
|
(33,393)
|
21,941
|
(223,735)
|
Net cash provided by (used in) financing activities
|
(715,439)
|
26,546
|
13,442
|
7,545
|
(21,439)
|
Net change in cash and cash equivalents
|
30,859
|
14,283
|
141,452
|
119,811
|
306,823
|
Cash and cash equivalents at start of period
|
254,525
|
113,073
|
113,073
|
127,356
|
285,384
|
Cash and cash equivalents at end of period
|
285,384
|
127,356
|
254,525
|
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(in thousands of $ except number of shares)
|
2023
Jan-Sep
|
2022
Jan-Sep
|
2022
Jan-Dec
|
NUMBER OF SHARES OUTSTANDING
|
|||
Balance at beginning of period
|
222,622,889
|
203,530,979
|
203,530,979
|
Shares issued in connection with Euronav share acquisition
|
—
|
19,091,910
|
19,091,910
|
Balance at end of period
|
222,622,889
|
222,622,889
|
222,622,889
|
SHARE CAPITAL
|
|||
Balance at beginning of period
|
222,623
|
203,531
|
203,531
|
Shares issued in connection with Euronav share acquisition
|
—
|
19,092
|
19,092
|
Balance at end of period
|
222,623
|
222,623
|
222,623
|
ADDITIONAL PAID IN CAPITAL
|
|||
Balance at beginning of period
|
604,687
|
448,291
|
448,291
|
Shares issued in connection with Euronav share acquisition
|
—
|
156,396
|
156,396
|
Balance at end of period
|
604,687
|
604,687
|
604,687
|
CONTRIBUTED SURPLUS
|
|||
Balance at beginning of period
|
1,004,094
|
1,004,094
|
1,004,094
|
Balance at end of period
|
1,004,094
|
1,004,094
|
1,004,094
|
ACCUMULATED OTHER RESERVES
|
|||
Balance at beginning of period
|
454
|
228
|
228
|
Other comprehensive income
|
79
|
268
|
226
|
Balance at end of period
|
533
|
496
|
454
|
RETAINED EARNINGS (DEFICIT)
|
|||
Balance at beginning of period
|
428,513
|
(13,631)
|
(13,631)
|
Profit for the period
|
538,043
|
236,484
|
475,537
|
Cash dividends
|
(572,141)
|
(33,393)
|
(33,393)
|
Balance at end of period
|
394,415
|
189,460
|
428,513
|
EQUITY ATTRIBUTABLE TO THE COMPANY
|
2,226,352
|
2,021,360
|
2,260,371
|
NON-CONTROLLING INTEREST
|
|||
Balance at beginning of period
|
(472)
|
(472)
|
(472)
|
Balance at end of period
|
(472)
|
(472)
|
(472)
|
TOTAL EQUITY
|
2,225,880
|
2,020,888
|
2,259,899
|
(in thousands of $)
|
2023
Jan-Sep
|
2022
Jan-Sep
|
2022
Jan-Dec
|
Profit for the period
|
538,043
|
236,484
|
475,537
|
(in thousands)
|
|||
Weighted average number of basic and diluted shares
|
222,623
|
211,109
|
214,011
|
(in thousands of $)
|
YTD 2023
|
Q3 2023
|
Q2 2023
|
Q1 2023
|
FY 2022
|
Q3 2022
|
Adjusted profit
|
||||||
Profit
|
538,043
|
107,743
|
230,674
|
199,626
|
475,537
|
156,240
|
Add back:
|
||||||
Loss on marketable securities
|
23,968
|
—
|
20,795
|
3,173
|
12,005
|
—
|
Share of losses of associated companies
|
1,690
|
1,690
|
—
|
—
|
92
|
—
|
Unrealized loss on derivatives (1)
|
7,739
|
375
|
—
|
7,364
|
1,116
|
—
|
Loss on termination of leases
|
—
|
—
|
—
|
—
|
431
|
—
|
Less:
|
||||||
Unrealized gain on derivatives (1)
|
(6,075)
|
—
|
(6,075)
|
—
|
(51,108)
|
(15,757)
|
Gain on marketable securities
|
(17,883)
|
(17,883)
|
—
|
—
|
(70,364)
|
(47,072)
|
Share of results of associated companies
|
(4,955)
|
—
|
(1,217)
|
(3,738)
|
(14,335)
|
(5,652)
|
Amortization of acquired time charters
|
—
|
—
|
—
|
—
|
(2,806)
|
(304)
|
Gain on sale of vessels
|
(21,960)
|
—
|
(9,251)
|
(12,709)
|
(4,618)
|
—
|
Dividends received
|
(36,612)
|
(11,112)
|
(24,973)
|
(527)
|
(1,579)
|
(866)
|
Gain on settlement of insurance and other claims
|
(397)
|
—
|
—
|
(397)
|
(3,998)
|
(2,796)
|
Adjusted profit
|
483,558
|
80,813
|
209,953
|
192,792
|
340,373
|
83,793
|
(in thousands)
|
||||||
Weighted average number of ordinary shares
|
222,623
|
222,623
|
222,623
|
222,623
|
214,011
|
222,623
|
Denominator for diluted earnings per share
|
222,623
|
222,623
|
222,623
|
222,623
|
214,011
|
222,623
|
(in $)
|
||||||
Basic earnings per share
|
2.42
|
0.48
|
1.04
|
0.90
|
2.22
|
0.70
|
Adjusted basic earnings per share
|
2.17
|
0.36
|
0.94
|
0.87
|
1.59
|
0.38
|
Diluted earnings per share
|
2.42
|
0.48
|
1.04
|
0.90
|
2.22
|
0.70
|
Adjusted diluted earnings per share
|
2.17
|
0.36
|
0.94
|
0.87
|
1.59
|
0.38
|
(1) |
Adjusted profit has been revised to only exclude the unrealized gain/loss on derivatives to give effect to the economic benefit/cost provided by our interest rate swap
agreements. A reconciliation of the gain/loss on derivatives is as follows:
|
(in thousands of $)
|
YTD 2023
|
Q3 2023
|
Q2 2023
|
Q1 2023
|
FY 2022
|
Q3 2022
|
Unrealized gain (loss) on derivatives
|
(1,664)
|
(375)
|
6,075
|
(7,364)
|
49,992
|
15,757
|
Interest income (expense) on derivatives
|
16,631
|
6,116
|
5,551
|
4,964
|
3,631
|
1,487
|
Gain (loss) on derivatives
|
14,967
|
5,741
|
11,626
|
(2,400)
|
53,623
|
17,244
|
(in thousands of $)
|
YTD 2023
|
Q3 2023
|
Q2 2023
|
Q1 2023
|
FY 2022
|
Q3 2022
|
Revenues
|
1,387,180
|
377,085
|
512,763
|
497,332
|
1,430,208
|
382,186
|
Less
|
||||||
Voyage expenses and commission
|
(460,488)
|
(145,051)
|
(156,610)
|
(158,827)
|
(605,544)
|
(173,343)
|
Other non-vessel items
|
(7,899)
|
(2,934)
|
(3,810)
|
(1,155)
|
(12,254)
|
(4,188)
|
Total TCE
|
918,793
|
229,100
|
352,343
|
337,350
|
812,410
|
204,655
|
YTD 2023
|
Q3 2023
|
Q2 2023
|
Q1 2023
|
FY 2022
|
Q3 2022
|
|
Time charter TCE (in thousands of $)
|
||||||
VLCC
|
—
|
—
|
—
|
—
|
—
|
|
Suezmax
|
—
|
—
|
—
|
42,078
|
11,535
|
|
LR2
|
31,360
|
14,221
|
11,337
|
5,802
|
7,921
|
1,937
|
Total Time charter TCE
|
31,360
|
14,221
|
11,337
|
5,802
|
49,999
|
13,472
|
Spot TCE (in thousands of $)
|
||||||
VLCC
|
312,003
|
85,656
|
126,102
|
100,245
|
211,938
|
42,387
|
Suezmax
|
382,964
|
85,731
|
144,669
|
152,564
|
313,981
|
88,071
|
LR2
|
192,466
|
43,492
|
70,235
|
78,739
|
236,492
|
60,725
|
Total Spot TCE
|
887,433
|
214,879
|
341,006
|
331,548
|
762,411
|
191,183
|
Total TCE
|
918,793
|
229,100
|
352,343
|
337,350
|
812,410
|
204,655
|
Spot days (available days less offhire days)
|
||||||
VLCC
|
5,894
|
2,014
|
1,971
|
1,909
|
6,775
|
1,698
|
Suezmax
|
7,010
|
2,282
|
2,344
|
2,384
|
8,464
|
2,141
|
LR2
|
4,009
|
1,283
|
1,328
|
1,398
|
6,139
|
1,512
|
Spot TCE per day (in $ per day)
|
||||||
VLCC
|
52,900
|
42,500
|
64,000
|
52,500
|
31,300
|
25,000
|
Suezmax
|
54,600
|
37,600
|
61,700
|
64,000
|
37,100
|
41,100
|
LR2
|
48,000
|
33,900
|
52,900
|
56,300
|
38,500
|
40,200
|