concern, expressed "cautious optimism'' about the company's prospects for next year as they unveiled a $17.3 million loss for the third quarter of 1998, versus net income of $8.3 million a year earlier.

The loss takes the company's total losses for the first nine months of 1999 to $20.7 million, against a nine-month profit of $32.2 million for the comparable period in 1998.

In management's discussion of the market, it said that the average daily time charter (TCE) results earned by the company's vessels were "another setback for tanker owners''. Based on a continued strong adherence to the OPEC production cut, rates continued the weak trend from the second quarter, management said.

During the third quarter, Frontline took delivery of the fourth and fifth VLCC C-Class newly built vessels, the Front Commander and Front Crown , both vessels being financed by traditional bank financing. At the end of the quarter, the company entered into three transactions "to substantially increase financial flexibility in the coming years''.

One is an agreement with its banks to allow flexibility in its debt repayment schedule, which, if utilised in 2000, will increase working capital by up to a maximum of $32 million.

The company also issued approximately $20 million in equity through a private placement with five financial institutions. In addition, $35 million of an $89 million subordinated loan facility was converted to equity.

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