Bermuda-registered oil tanker operator Frontline Ltd. suffered a net loss of $31.8 million in the second quarter of 2002, largely as a result of taking a charge for foreign currency revaluations on its debt.

Frontline reported an operating profit of $38.2 million for the three months ending June 30. Frontline said earnings from charters declined compared to the preceding quarter while expenses rose due to the dry-docking of five vessels.

For the first six months of 2002, the Company had an operating profit of $95 million compared to $351.8 million in the same quarter in 2001 and a net loss of $16.9 million compared with a first half net income of $299.8 million.

The company said rates for charters remained soft in the second quarter as a result of reduced oil output in the Middle East. But the company said it expected the second half of the year to see improvements based on a likely increase in production.