million for the second quarter, compared to $14.7 million last year.

The results announced yesterday also showed the company made a net loss of $3.4 million for the first six months of the year, after recording $23.9 million in the same period of 1998.

This translates to a loss per share for the quarter of eight cents, or of seven cents for the first six months of the year compared to earnings per share last year of 32 cents for the quarter and 52 cents for the half year.

Frontline blamed the poor results on the "weakness in the tanker market''.

This was offset by a dividend of $9 million received in respect of the company's investment in ICB Shipping company, a statement from Frontline said.

"In the first half of 1999, the company has taken steps to improve its liquidity position and to address certain covenant breaches that existed at the end of 1998,'' it said.

And it pointed out that the current status of the oil market put pressure on the oil companies and refineries to reduce the oil in storage.

"The existing drawdown of storage, estimated to be approximately one million barrels per day, is negatively influencing the demand side in the tanker market.

"A solid improvement in rates is not likely to occur until OPEC decides to change their production strategy and thereby open up for more Arabian Gulf production.'' But such a decision could be made in OPEC's September meeting and this would significantly influence the short-term outlook in the market.

Frontline posts loss "The shareholders should anticipate an operating result for the third quarter in line with, or somewhat weaker than, the second quarter,'' it concluded.

"The Board expects that the market will again show a positive development from the fourth quarter.''