Frontline reduces loss

John Fredriksen-controlled tanker company Frontline has cut its loss in the second quarter, despite a plunge in rates.

The Oslo-listed operator said the net deficit to 30 June was $78.2m, compared to $120m in the same period of 2013.

This was still worse than analysts' estimates of $28.1m, however.

Revenue was down from $121m to $119m, but costs were reduced much faster, from $222m to $184.5m, as vessel operating expenses were cut.

Vessel impairment losses were slashed to $56.2m, following an $81m hit last year.

Second quarter daily time charter equivalents (TCEs) for its VLCCs and suezmaxes took a hammering, however, at $13,900 and $12,400 respectively, down from $32,700 and $27,700 in the first three-month period.

It spent $21.2m on interest in the quarter, with debt standing at $1bn.

But it expects positive developments in the tanker market in the third quarter to improve its operating result.