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FRONTLINE PLC
(registrant)
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Dated: June 1, 2023
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By:
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/s/ Inger M. Klemp
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Name: Inger M. Klemp
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Title: Principal Financial Officer
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• |
Highest first quarter profit since 2008 of $199.6 million, or $0.90 per basic and diluted share for
the first quarter of 2023.
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• |
Adjusted profit of $193.3 million, or $0.87 per basic and diluted share for the first quarter of 2023.
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• |
Declared a cash dividend of $0.70 per share for the first quarter of 2023.
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• |
Reported revenues of $497.3 million for the first quarter of 2023.
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• |
Reported spot TCEs for VLCCs, Suezmax tankers and LR2/Aframax tankers in the first quarter of 2023
were $52,500, $64,000 and $56,300 per day, respectively.
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• |
For the second quarter of 2023, we estimate spot TCE on a load-to-discharge basis of $75,000 contracted for 78% of vessel days for VLCCs, $65,000
contracted for 71% of vessel days for Suezmax tankers and $65,700 contracted for 63% of vessel days for LR2/Aframax tankers.
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• |
Sold the 2010-built Suezmax tanker, Front Njord in May 2023, for aggregate gross proceeds of $44.5 million. After
repayment of existing debt on the vessel, the transaction is expected to generate net cash proceeds of approximately $28.2 million.
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• |
Entered into two fixed rate time charter-out contracts in April 2023 and May 2023 for two LR2/Aframax tankers to third parties on two-year time charters, both at a daily base
rate of $46,500.
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• |
Entered into a senior secured term loan facility in May 2023 for a total amount of up to $129.4 million at attractive terms to refinance an existing term loan facility maturing
in August 2023.
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($ per day)
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Spot TCE
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Spot TCE estimates
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% Covered
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Estimated average
daily cash
breakeven rates
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||
Q1 2023
|
Q4 2022
|
2022
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Q2 2023
|
2023
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||
VLCC
|
52,500
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63,200
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31,300
|
75,000
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78%
|
26,500
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Suezmax
|
64,000
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57,900
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37,100
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65,000
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71%
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22,700
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LR2 / Aframax
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56,300
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58,800
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38,500
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65,700
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63%
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16,800
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CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
(in thousands of $, except per share data)
|
2023
Jan-Mar
|
2022
Jan-Mar
|
2022
Jan-Dec
|
Revenues
|
497,332
|
217,441
|
1,430,208
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Other income
|
14,289
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5,381
|
8,040
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Total operating revenues and other income
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511,621
|
222,822
|
1,438,248
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Voyage expenses and commission
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158,827
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113,651
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605,544
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Ship operating expenses
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43,718
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41,132
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175,164
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Administrative expenses
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12,638
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6,898
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47,374
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Depreciation
|
55,546
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40,945
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165,170
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Contingent rental income
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—
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(551)
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(623)
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Total operating expenses
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270,729
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202,075
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992,629
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Net operating income
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240,892
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20,747
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445,619
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Finance income
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2,873
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58
|
1,479
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Finance expense
|
(45,417)
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7,927
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(45,330)
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Gain (loss) on marketable securities
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(3,173)
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269
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58,359
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Share of results of associated company
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3,738
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(92)
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14,243
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Dividends received
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527
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46
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1,579
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Profit before income taxes
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199,440
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28,955
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475,949
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Income tax benefit (expense)
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186
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13
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(412)
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Profit for the period
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199,626
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28,968
|
475,537
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Basic and diluted earnings per share
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$0.90
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$0.14
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$2.22
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands of $)
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2023
Jan-Mar
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2022
Jan-Mar
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2022
Jan-Dec
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Profit for the period
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199,626
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28,968
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475,537
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Items that may be reclassified to profit or loss:
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|||
Foreign currency exchange gain (loss)
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53
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(1)
|
226
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Other comprehensive income (loss)
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53
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(1)
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226
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Comprehensive income
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199,679
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28,967
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475,763
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CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in thousands of $)
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Mar 31
2023
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Dec 31
2022
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ASSETS
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Current assets
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||
Cash and cash equivalents
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225,361
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254,525
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Marketable securities
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233,108
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236,281
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Other current assets
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375,003
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390,244
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Total current assets
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833,472
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881,050
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Non-current assets
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||
Newbuildings
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—
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47,991
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Vessels and equipment
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3,708,885
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3,650,652
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Right-of-use assets
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2,892
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3,108
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Goodwill
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112,452
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112,452
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Investment in associated company
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12,742
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16,302
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Loan notes receivable
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—
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1,388
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Other non-current assets
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48,746
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55,500
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Total non-current assets
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3,885,717
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3,887,393
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Total assets
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4,719,189
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4,768,443
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LIABILITIES AND EQUITY
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Current liabilities
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Short-term debt and current portion of long-term debt
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365,233
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277,854
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Current portion of obligations under leases
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1,052
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1,024
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Other current payables
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108,680
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112,781
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Total current liabilities
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474,965
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391,659
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Non-current liabilities
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Long-term debt
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2,017,392
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2,112,460
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Obligations under leases
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2,140
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2,372
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Other non-current payables
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3,320
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2,053
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Total non-current liabilities
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2,022,852
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2,116,885
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Equity
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Frontline plc equity
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2,221,844
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2,260,371
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Non-controlling interest
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(472)
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(472)
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Total equity
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2,221,372
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2,259,899
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Total liabilities and equity
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4,719,189
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4,768,443
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of $)
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2023
Jan-Mar
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2022
Jan-Mar
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2022
Jan-Dec
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||||
OPERATING ACTIVITIES
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|||||||
Profit for the period
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199,626
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28,968
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475,537
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Adjustments to reconcile profit to net cash provided by operating activities:
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Net finance expense (income)
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42,544
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(7,985
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)
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43,851
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Depreciation
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55,546
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40,945
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165,170
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Gain on sale of vessels and equipment
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(12,709
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)
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(4,618
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)
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(4,596
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)
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(Gain) loss on marketable securities
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3,173
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(269
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)
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(58,359
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)
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Share of results of associated company
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(3,738
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)
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92
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(14,243
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)
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Other, net
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3,387
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(1,352
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)
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2,376
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Change in operating assets and liabilities
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7,116
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(19,194
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)
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(142,112
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)
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Debt issuance costs paid
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(27
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)
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(186
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)
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(4,349
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)
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Interest paid
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(40,039
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)
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(16,505
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)
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(83,039
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)
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Interest received
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7,837
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47
|
5,094
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Net cash provided by operating activities
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262,716
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19,943
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385,330
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INVESTING ACTIVITIES
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|||||||
Additions to newbuildings, vessels and equipment
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(150,714
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)
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(13,734
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)
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(335,815
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)
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Proceeds from sale of vessels
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99,130
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80,000
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80,000
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||||
Investment in associated company
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—
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—
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(1,505
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)
|
|||
Cash inflows from associated company
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8,686
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—
|
—
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||||
Net cash provided by (used in) investing activities
|
(42,898
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)
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66,266
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(257,320
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)
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FINANCING ACTIVITIES
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|||||||
Proceeds from issuance of debt
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130,000
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—
|
651,248
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||||
Repayment of debt
|
(140,572
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)
|
(86,755
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)
|
(597,834
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)
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Repayment of obligations under leases
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(204
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)
|
(1,351
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)
|
(2,123
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)
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Lease termination payments
|
—
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—
|
(4,456
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)
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|||
Dividends paid
|
(238,206
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)
|
—
|
(33,393
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)
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Net cash provided by (used in) financing activities
|
(248,982
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)
|
(88,106
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)
|
13,442
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Net change in cash and cash equivalents
|
(29,164
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)
|
(1,897
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)
|
141,452
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||
Cash and cash equivalents at start of period
|
254,525
|
113,073
|
113,073
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||||
Cash and cash equivalents at end of period
|
225,361
|
111,176
|
254,525
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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(in thousands of $ except number of shares)
|
2023
Jan-Mar
|
2022
Jan-Mar
|
2022
Jan-Dec
|
|||
NUMBER OF SHARES OUTSTANDING
|
||||||
Balance at beginning of period
|
222,622,889
|
203,530,979
|
203,530,979
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|||
Shares issued in connection with Euronav share acquisition
|
—
|
—
|
19,091,910
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|||
Balance at end of period
|
222,622,889
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203,530,979
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222,622,889
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|||
SHARE CAPITAL
|
||||||
Balance at beginning of period
|
222,623
|
203,531
|
203,531
|
|||
Shares issued in connection with Euronav share acquisition
|
—
|
—
|
19,092
|
|||
Balance at end of period
|
222,623
|
203,531
|
222,623
|
|||
ADDITIONAL PAID IN CAPITAL
|
||||||
Balance at beginning of period
|
604,687
|
448,291
|
448,291
|
|||
Shares issued in connection with Euronav share acquisition
|
—
|
—
|
156,396
|
|||
Balance at end of period
|
604,687
|
448,291
|
604,687
|
|||
CONTRIBUTED SURPLUS
|
||||||
Balance at beginning of period
|
1,004,094
|
1,004,094
|
1,004,094
|
|||
Balance at end of period
|
1,004,094
|
1,004,094
|
1,004,094
|
|||
ACCUMULATED OTHER RESERVES
|
||||||
Balance at beginning of period
|
454
|
228
|
228
|
|||
Other comprehensive income
|
53
|
(1
|
)
|
226
|
||
Balance at end of period
|
507
|
227
|
454
|
|||
RETAINED EARNINGS (DEFICIT)
|
||||||
Balance at beginning of period
|
428,513
|
(13,631
|
)
|
(13,631
|
)
|
|
Profit for the period
|
199,626
|
28,968
|
475,537
|
|||
Cash dividends
|
(238,206
|
)
|
—
|
(33,393
|
)
|
|
Balance at end of period
|
389,933
|
15,337
|
428,513
|
|||
EQUITY ATTRIBUTABLE TO THE COMPANY
|
2,221,844
|
1,671,480
|
2,260,371
|
|||
NON-CONTROLLING INTEREST
|
||||||
Balance at beginning of period
|
(472
|
)
|
(472
|
)
|
(472
|
)
|
Balance at end of period
|
(472
|
)
|
(472
|
)
|
(472
|
)
|
TOTAL EQUITY
|
2,221,372
|
1,671,008
|
2,259,899
|
(in thousands of $)
|
2023
Jan-Mar
|
2022
Jan-Mar
|
2022
Jan-Dec
|
Profit for the period
|
199,626
|
28,968
|
475,537
|
(in thousands)
|
|||
Weighted average number of ordinary shares
|
222,623
|
203,531
|
214,011
|
Denominator for diluted earnings per share
|
222,623
|
203,531
|
214,011
|
(in thousands of $)
|
Q1 2023
|
FY 2022
|
Q4 2022
|
Q1 2022
|
||||
Adjusted profit (loss)
|
||||||||
Profit
|
199,626
|
475,537
|
239,054
|
28,968
|
||||
Add back:
|
||||||||
Loss on marketable securities
|
3,173
|
12,005
|
—
|
—
|
||||
Share of losses of associated companies
|
—
|
92
|
—
|
92
|
||||
Unrealized loss on derivatives (1)
|
7,364
|
1,116
|
1,116
|
—
|
||||
Loss on termination of leases
|
—
|
431
|
—
|
—
|
||||
Less:
|
||||||||
Unrealized gain on derivatives (1)
|
—
|
(51,108
|
)
|
—
|
(26,134
|
)
|
||
Gain on marketable securities
|
—
|
(70,364
|
)
|
(23,023
|
)
|
(269
|
)
|
|
Share of results of associated companies
|
(3,738
|
)
|
(14,335
|
)
|
(2,632
|
)
|
—
|
|
Amortization of acquired time charters
|
—
|
(2,806
|
)
|
—
|
(1,244
|
)
|
||
Gain on sale of vessels
|
(12,709
|
)
|
(4,618
|
)
|
—
|
(4,618
|
)
|
|
Gain on settlement of insurance and other claims
|
(397
|
)
|
(3,998
|
)
|
—
|
(362
|
)
|
|
Adjusted profit (loss)
|
193,319
|
341,952
|
214,515
|
(3,567
|
)
|
|||
(in thousands)
|
||||||||
Weighted average number of ordinary shares
|
222,623
|
214,011
|
222,623
|
203,531
|
||||
Denominator for diluted earnings (loss) per share
|
222,623
|
214,011
|
222,623
|
203,531
|
||||
(in $)
|
||||||||
Basic earnings (loss) per share
|
0.90
|
2.22
|
1.07
|
0.14
|
||||
Adjusted basic earnings (loss) per share
|
0.87
|
1.60
|
0.96
|
(0.02
|
)
|
|||
Diluted earnings (loss) per share
|
0.90
|
2.22
|
1.07
|
0.14
|
||||
Adjusted diluted earnings (loss) per share
|
0.87
|
1.60
|
0.96
|
(0.02
|
)
|
(in thousands of $)
|
Q1 2023
|
FY 2022
|
Q4 2022
|
Q1 2022
|
||||
Unrealized gain (loss) on derivatives
|
(7,364
|
)
|
49,992
|
(1,116
|
)
|
26,134
|
||
Interest income (expense) on derivatives
|
4,964
|
3,631
|
3,697
|
(1,213
|
)
|
|||
Gain (loss) on derivatives
|
(2,400
|
)
|
53,623
|
2,581
|
24,921
|
(in thousands of $)
|
Q1 2023
|
FY 2022
|
Q4 2022
|
Q1 2022
|
|||||
Revenues
|
497,332
|
1,430,208
|
530,141
|
217,441
|
|||||
less
|
|||||||||
Voyage expenses and commission
|
(158,827
|
)
|
(605,544
|
)
|
(177,295
|
)
|
(113,651
|
)
|
|
Other non-vessel items
|
(1,155
|
)
|
(12,254
|
)
|
(1,197
|
)
|
(1,897
|
)
|
|
Total TCE
|
337,350
|
812,410
|
351,649
|
101,893
|
Q1 2023
|
FY 2022
|
Q4 2022
|
Q1 2022
|
|||||
Time charter TCE (in thousands of $)
|
||||||||
VLCC
|
—
|
—
|
—
|
—
|
||||
Suezmax
|
—
|
42,078
|
613
|
12,624
|
||||
LR2
|
5,802
|
7,921
|
5,984
|
—
|
||||
Total Time charter TCE
|
5,802
|
49,999
|
6,597
|
12,624
|
||||
Spot TCE (in thousands of $)
|
||||||||
VLCC
|
100,245
|
211,938
|
118,110
|
25,027
|
||||
Suezmax
|
152,564
|
313,981
|
142,630
|
33,276
|
||||
LR2
|
78,739
|
236,492
|
84,312
|
30,966
|
||||
Total Spot TCE
|
331,548
|
762,411
|
345,052
|
89,269
|
||||
Total TCE
|
337,350
|
812,410
|
351,649
|
101,893
|
||||
Spot days (available days less offhire days)
|
||||||||
VLCC
|
1,909
|
6,775
|
1,870
|
1,595
|
||||
Suezmax
|
2,384
|
8,464
|
2,462
|
1,971
|
||||
LR2
|
1,398
|
6,139
|
1,433
|
1,627
|
||||
Spot TCE per day (in $ per day)
|
||||||||
VLCC
|
52,500
|
31,300
|
63,200
|
15,700
|
||||
Suezmax
|
64,000
|
37,100
|
57,900
|
16,900
|
||||
LR2
|
56,300
|
38,500
|
58,800
|
19,000
|