LONDON (Bloomberg) — Bermuda-based Frontline Ltd., the world's largest owner of supertankers, may say fourth-quarter profit fell 58 percent as global oil demand collapsed and the year-earlier period included a record advance in rents.

Frontline will probably say net income dropped to $84.25 million, or $1.09 a share, from $202.3 million, or $2.70, a year ago, according to the median estimate of eight analysts surveyed by Bloomberg News.

Oil demand fell 2.5 percent to 85 million barrels a day in the fourth quarter compared with a year earlier, according to a Feb. 11 report from the Paris-based International Energy Agency. Last year marked the first annual decline in worldwide crude consumption since 1983.

That prompted the Organisation of Petroleum Exporting Countries to cut production by a record 4.2 million barrels a day, reducing the number of cargoes for Frontline and other owners including Euronav NV and Overseas Shipholding Group Inc.

Hire rates registered their fastest two-month gain in at least 16 years in November and December of 2007 when Opec shipments were increasing, helping Frontline post its biggest profit in almost two years.

Two analysts surveyed said the company may post mark-to-market losses of $25 million to $27 million related to its holding in Overseas Shipholding Group.

Frontline is scheduled to report earnings today.