Sales boost FRNT

John Fredriksen’s Frontline 2012 has seen second quarter profit soar as it sold ships and shares.

Net earnings to 30 June were $136.6m, against $37.9m in 2013, in line with analysts’ expectations.

Revenue grew to $53.6m from $31m over the same period.

It was boosted this year by one-off gains of $127.6m, $75m of which was from selling five bulker newbuildings to sister outfit Knightsbridge tankers.

It also banked $35.9m from cancelling a newbuilding contract at China’s Jinhaiwan shipyard and $16.9m from disposing of stock in Avance Gas.

Average daily time charter equivalents (TCEs) for VLCCs and suezmaxes were $24,000 and  $14,400, respectively, down from $39,500 and  $26,500 in the first quarter.

MR tankers earned $15,800 against $17,900 in the preceding quarter.

FRNT is estimating average cash breakeven rates for the remainder of 2014 of $26,800, $19,000 and $13,900 for its VLCCs, suezmaxes and MRs, respectively.

Tanker markets have been better in the third quarter, which should boost the operating result, it said.

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