Frontline Ltd this morning reported fourth-quarter profit of $18.3 million, beating analysts’ estimates.

However, Robert Hvide Macleod, the Hamilton-based oil tanker operator’s chief executive officer, predicted pressure on the rates at which the company can charter its tankers as newly built vessels come online in the industry.

The company declared a dividend of 15 cents per share and shares rose 4 per cent to $7 in morning trading on the New York Stock Exchange.

Frontline’s net income totalled 12 cents per share. Earnings, adjusted for non-recurring costs, came to 22 cents per share.

The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of 8 cents per share.

The shipping company posted revenue of $178.3 million in the period.

For the year, the company reported profit of $117 million, or 75 cents per share. Revenue was reported as $592.7 million.

“The improvement in crude tanker rates in the fourth quarter was attributable to seasonality as we approached winter in the Northern Hemisphere as well as a strong increase in Opec volumes ahead of the implementation of production cuts,” Mr Macleod said in Frontline’s earnings statement.

“We remain of the opinion that 2017 will see pressure on freight rates as further newbuildings are delivered.”

Frontline proposed a merger last month with fellow Bermudian tanker operator DHT Holdings, but the stock-for-stock transaction was rejected by the DHT board.

In December last year, Frontline raised $100 million through a share offering.