Bermudian-headquartered Frontline Ltd, a shipping company engaged primarily in the ownership and operation of oil tankers and product tankers, has reported net income of $47.1 million for the second quarter of 2022.

Adjusted net income for the quarter was $42.5 million.

The company has declared a cash dividend of $0.15 per share for the second quarter.

Frontline reported total operating revenues of $300.4 million for the quarter.

Spot time charter equivalents for very large crude carriers, Suezmax tankers and LR2 tankers in the second quarter were $16,400, $26,500 and $38,600 per day, respectively.

For the third quarter, Frontline estimates spot TCE on a load-to-discharge basis of $28,100 contracted for 73 per cent of vessel days for VLCCs, $45,000 contracted for 73 per cent of vessel days for Suezmax tankers and $46,200 contracted for 62 per cent of vessel days for LR2 tankers.

During the quarter, the company announced the signing of a definitive combination agreement for a stock-for-stock combination between Frontline and Euronav NV to create a leading global independent oil tanker operator which on a combined basis would own and operate 68 VLCCs and 56 Suezmax tankers, and 20 LR2/Aframax tankers.

Frontline entered into two senior secured term loan facilities in April and July for a total amount of up to $356.4 million at attractive terms to refinance two existing term loan facilities maturing in the first quarter of 2023.

Lars H. Barstad, chief executive officer of Frontline Management AS, said: “Frontline’s fleet of LR2 tankers took centre stage in the second quarter of 2022, during which period we achieved the highest quarterly TCE we have recorded on this vessel class.

“Sanctions on Russian oil and other products disrupted trade lanes for refined products globally, causing both refinery margins and freight rates to rise. Crude oil transport has also been affected, and Suezmax tankers have seen increased utilisation and freight rates, throughout the second quarter.

“Frontline is proud to show solid earnings in the second quarter and to be able to distribute dividends. We have over the last several quarters pointed to what we believe will be a cyclical upturn for tankers, and this view has only been further cemented during the first half of the year.

“Supply and demand for oil and product transportation has gradually been tightening as the world recovers from the Covid-19 pandemic, and a pivotal point seems to have been found. With the lowest order book as a percentage of the fleet seen in decades, and oil supply and demand normalising, we believe this bodes well for the years to come.”