- Frontline’s net profit for the October-December period rose fourfold year-on-year to an 11-year high of $108.8 million.
- The group warned that its results in the near term would be hurt by the coronavirus outbreak.
- A dividend of $0.4 per share will be paid for the fourth quarter, in line with a promise that the payout would be “well in excess” of the $0.1 paid in the third quarter.
World’s largest oil tanker shipping company Frontline group reported sharp gains in earnings for the final quarter of 2019. But now the group warned that its results in the near term would be hurt by the coronavirus outbreak, reports Marine Link.
Net profit details
- Frontline’s net profit for the October-December period rose fourfold year-on-year to an 11-year high of $108.8 million.
- Still lagging an average forecast of $127.1 million.
Slowdown in oil demand
Chief Executive Robert Hvide Macleod said, “Primarily due to the effect of the coronavirus, we have a near-term macro headwind with a slowdown in oil demand, particularly in China.”
He added that the duration of this impact cannot be estimated. “Once the coronavirus is contained, Frontline is exceptionally well positioned for the strong rebound we believe will follow.”
Dividend payout
Frontline will pay a dividend of $0.4 per share for the fourth quarter, in line with a promise that the payout would be “well in excess” of the $0.1 paid in the third quarter.
Analysts on average expected a dividend of $0.29 per share. The CEO said Frontline’s ambition is to continue to pay “significant dividends”.
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Source: Marine Link
