Interim Report January – March 2003


Frontline Board is pleased to announce the Company’s second best quarter ever.
Frontline Ltd. reports earnings before interest, tax, depreciation, and amortisation including earnings from associated companies of $222.9 million and net income of $177.6 million for the first quarter of 2003. Earnings per share for the quarter were $2.32.
The average daily time charter equivalents (“TCEs”) earned in the spot and period market by the Company’s VLCCs, Suezmax tankers, and Suezmax OBO carriers were $55,400, $40,800 and $42,400, respectively, compared with $30,900, $25,300 and $24,200, respectively in the immediately preceding quarter.
Net interest expense for the quarter was $15.1 million (2002 comparable quarter: $15.2 million). During the quarter, interest rate swaps with principal amounts of $150 million expired and at March 31, 2003 approximately 85 per cent of bank debt was floating, increased from 74 per cent at December 31, 2002. Other financial items for the quarter were positive $4.9 million of which $1.8 million is attributable to the market value adjustment on interest rate swaps and $5.0 million to the Equity Swap Line. In the first quarter of 2003, the Yen was largely unchanged against the US Dollar, resulting in only a small foreign currency impact for the Company on the Yen debt in subsidiaries and associated companies.
The net increase in cash and cash equivalents in the quarter was $49.1 million. The increase comes after build-up of working capital by $53.4 million, dividend payment of $11.5 million, prepayments of loans in the amount of $29.3 million, scheduled debt repayment of $36.0 million and net investments of $10.1 million.
On May 8, 2003, the Board declared a dividend of $1.00 per share. The record date for the dividend is May 20, 2003, ex dividend date is May 16, 2003 and the dividend will be paid on or about June 6, 2003.
The results for the first quarter of 2002 have been restated, principally to reflect the adoption of Financial Accounting Standard 142 “Goodwill and Other Intangible Assets”. The Company adopted FAS 142 effective January 1, 2002 as disclosed in the preliminary fourth quarter and financial year 2002 report.
The full report is available on the following link: