The world's largest independent oil tanker company, Frontline Ltd said weakness in the crude freight market would continue, as it posted third-quarter results that met expectations.
"Based on the current weakness in the tanker market and the company's trading results achieved so far in the fourth quarter, the board expects the weak trend shown in the third-quarter results to be extended into the fourth quarter," Frontline said in a statement.
The Oslo-listed group, controlled by shipping tycoon John Fredriksen, said on Wednesday that its operating result for the third quarter was $48 million, compared with an average forecast of $47 million by 10 analysts in a Reuters survey.
The company announced a dividend of $0.25, which was seven cents shy of what the analysts had expected.
The company said the portion of its ships committed to fixed charters was 34 percent for 2010 and 25 percent for 2011, and it said it would increase its fixed-charter coverage for 2011-2013 to the same levels.
Firmer demand in recent weeks has helped to soak up tanker availability.
Frontline said it was "somewhat concerned by the high number of expected vessel deliveries in the next two years" but said delivery delays and cancellations coupled with a possible rebound in the global economy could restore market balance.
Frontline had warned in August that it was expecting its third-quarter earnings to be "materially lower" than in those in
the second quarter, when the operating result was $118 million.
"Based on the current weakness in the tanker market and the company's trading results achieved so far in the fourth quarter, the board expects the weak trend shown in the third-quarter results to be extended into the fourth quarter," Frontline said in a statement.
The Oslo-listed group, controlled by shipping tycoon John Fredriksen, said on Wednesday that its operating result for the third quarter was $48 million, compared with an average forecast of $47 million by 10 analysts in a Reuters survey.
The company announced a dividend of $0.25, which was seven cents shy of what the analysts had expected.
The company said the portion of its ships committed to fixed charters was 34 percent for 2010 and 25 percent for 2011, and it said it would increase its fixed-charter coverage for 2011-2013 to the same levels.
Firmer demand in recent weeks has helped to soak up tanker availability.
Frontline said it was "somewhat concerned by the high number of expected vessel deliveries in the next two years" but said delivery delays and cancellations coupled with a possible rebound in the global economy could restore market balance.
Frontline had warned in August that it was expecting its third-quarter earnings to be "materially lower" than in those in
the second quarter, when the operating result was $118 million.