Bermudian-based Frontline Ltd, the oil-shipping company, has reported a net loss of $33.2 million for the third quarter.

The company reported an adjusted net loss of $35.9 million in the set of unaudited results released today.

Total operating revenues were $171.8 million for the third quarter.

Frontline reported spot time charter equivalent rates for very large crude carriers (VLCCs), Suezmax tankers and LR2 tankers in the third quarter of $10,500, $7,900 and $10,700 a day, respectively.

For the fourth quarter, the company estimates spot TCE on a load-to-discharge basis of $21,600 contracted for 79 per cent of vessel days for VLCCs, $17,900 contracted for 72 per cent of vessel days for Suezmax tankers and $16,000 contracted for 64 per cent of vessel days for LR2 tankers.

The company said that it entered into senior secured-term loan facilities in September and October for a total amount of up to $247 million to partially finance the acquisition of two 2019-built VLCCs, which were delivered to the company in October and November, respectively, and the acquisition of two of the six resale VLCC newbuilding contracts.

Frontline said that it obtained financing commitments for senior secured-term loan facilities in October and November for a total amount of up to $260 million to partially finance the acquisition of four of the six VLCC newbuilding contracts, which are subject to final documentation.

It also agreed this month to sell four of its scrubber-fitted LR2 tankers built in 2014 and 2015 for an aggregate sale price of $160 million. The transaction is expected to generate net cash proceeds of approximately $67 million.

Lars H Barstad, chief executive officer of Frontline Management AS, said: “The third quarter continued to be a challenging period for tanker owners. Global oil demand rose, but oil supply growth remained muted, resulting in one of the most demanding quarters on record for tankers.

“Global inventories were drawn throughout the period, albeit at a reduced pace compared to the immediately preceding quarter. Yet again Frontline has been reaping the benefits of running a ‘tight ship’ with what we believe to be industry-low operational, financial and administrative costs.”

He added: “In the current market, where oil prices and fuel costs have risen considerably, we believe having a modern, fuel-efficient fleet has proven advantageous. In the previous quarter I pointed to the fact that freight rates below operational cost, and in some cases negative for inefficient tonnage, is not sustainable.

“During the third quarter of the year, we finally started to see ship recycling accelerate. The fundamentals of this market remain the same; the global tanker fleet is ageing rapidly, order books are dwindling as global oil demand is about to grow beyond hundred million barrels per day. These factors combine to create a potentially potent cocktail for the recovery of the tanker market.”