The oil transport company FRONTLINE, which manages 68 tanker ships, has announced a net profit of $57.1 million and operating revenues of €274.4 million in the last quarter.
However, the outlook for the September-December period remains uncertain due to low profit margins, which do not ensure the company will reach break-even levels.
The recovery in 2021 could be progressive but slow. The second wave of Covid has in fact further destabilized the markets, further weakening demand for crude oil. After all, Opec+ is also planning new cuts in oil production.
A VLCC employed on the Saudi Arabia-China route currently costs around $8.6 thousand a day. A rather low figure if we consider that operating costs for Very Large Crude Carriers (crew, insurance, administrative charges, maintenance, etc.) are now $9.4 thousand per day.
Frontline has announced that for the last quarter the time charter equivalent (TCE) values of its VLCCs should be around $22,000 per day, while the break-even point is estimated to be around an average of $21,900 per day.
Translation by Giles Foster