Net income was $98.8 million, or $1.32 cents a share, up from $73.8 million, or 99 cents, a year earlier, the company said today in a statement to the Oslo Stock Exchange. Sales rose 39 percent to $405 million. Profit was expected to be $118.3 million, according to the median estimate of nine analysts surveyed by Bloomberg News.
Frontline, like rivals Euronav NV and OMI Corp., benefited from increased demand from U.S. refiners concerned that Gulf of Mexico storms and Middle East tension would interrupt oil supplies. About 260 million barrels of oil were shipped from Middle East ports in August, the biggest-ever one-month loading program, Paris-based shipbroker Barry Rogliano Salles said.
Market conditions were stronger than expected,'' the company said today.
Shares of Frontline, in which Norwegian billionaire John Fredriksen holds a 35 percent stake, have dropped almost 13 percent this year, valuing the company at 17.9 billion Norwegian kroner ($2.8 billion).
The operator of 76 oil tankers put seven vessels into dry- dock for routine maintenance during the quarter, it said today. Average daily earnings on the company's very large crude carriers, or VLCCs, were $59,800 a day, it said. Its suezmaxes earned $40,000 a day.
Nassau, Bahamas-based Teekay Shipping Corp. is the world's largest crude-oil tanker operator.
(Frontline is scheduled to hold a conference call to discuss its earnings at 2:30 p.m. Oslo time today. To listen, dial +47 23 00 04 00.)