FRONTLINE LTD. (registrant) | |||||||||||
Dated: September 1, 2021 | By: | /s/ Inger M. Klemp | |||||||||
Name: Inger M. Klemp | |||||||||||
Title: Principal Financial Officer | |||||||||||
(number of vessels) | Six months ended June 30, 2021 | Six months ended June 30, 2020 | Year ended December 31, 2020 | ||||||||
VLCCs | |||||||||||
At start of period | 19 | 19 | 19 | ||||||||
Other acquisitions/newbuilding deliveries | — | 1 | 1 | ||||||||
Disposal/lease termination | — | (1) | (1) | ||||||||
Chartered-in/redelivered | (2) | — | — | ||||||||
At end of period | 17 | 19 | 19 | ||||||||
Suezmax tankers | |||||||||||
At start of period | 27 | 26 | 26 | ||||||||
Chartered-in/redelivered (2) | — | (10) | (10) | ||||||||
Other acquisitions/newbuilding deliveries (2) | — | 11 | 11 | ||||||||
At end of period | 27 | 27 | 27 | ||||||||
LR2/Aframax tankers | |||||||||||
At start of period | 18 | 18 | 18 | ||||||||
Other acquisitions/newbuilding deliveries | 2 | — | — | ||||||||
At end of period | 20 | 18 | 18 | ||||||||
Total | |||||||||||
At start of period | 64 | 63 | 63 | ||||||||
Other acquisitions/newbuilding deliveries (2) | 2 | 12 | 12 | ||||||||
Disposal/lease termination | — | (1) | (1) | ||||||||
Chartered-in/redelivered (2) | (2) | (10) | (10) | ||||||||
At end of period | 64 | 64 | 64 |
(in thousands of $) | 2021 | 2020 | ||||||
Time charter revenues | 42,111 | 76,534 | ||||||
Voyage charter revenues | 313,917 | 708,528 | ||||||
Other income | 7,982 | 13,842 | ||||||
Total operating revenues | 364,010 | 798,904 | ||||||
Voyage expenses and commissions | 176,941 | 209,263 |
(in thousands of $) | 2021 | 2020 | ||||||
Gain on termination of vessel leases | — | 7,409 | ||||||
Gain on sale of vessel | — | 12,354 | ||||||
Gain on settlement of claim | — | 3,422 | ||||||
Gain on pool arrangements | 1,048 | 766 | ||||||
Other gains | 85 | 268 | ||||||
Other operating gains | 1,133 | 24,219 |
(in thousands of $) | 2021 | 2020 | ||||||
Contingent rental (income) expense | (1,624) | 8,270 |
(in thousands of $) | 2021 | 2020 | ||||||
Ship operating expenses | 88,154 | 79,831 |
(in thousands of $) | 2021 | 2020 | ||||||
Charter hire expenses | 2,593 | 4,454 |
(in thousands of $) | 2021 | 2020 | ||||||
Administrative expenses | 14,332 | 20,604 |
(in thousands of $) | 2021 | 2020 | ||||||
Depreciation | 71,734 | 66,725 |
(in thousands of $) | 2021 | 2020 | ||||||
Interest income | 84 | 597 |
(in thousands of $) | 2021 | 2020 | ||||||
Interest expense | (29,414) | (40,859) |
(in thousands of $) | 2021 | 2020 | ||||||
Share of results of associated company | (724) | (1,427) |
(in thousands of $) | 2021 | 2020 | ||||||
Gain (loss) on marketable securities | 7,915 | (4,542) |
(in thousands of $) | 2021 | 2020 | ||||||
Gain (loss) on derivatives | 10,989 | (21,746) |
(in thousands of $) | 2021 | 2020 | ||||||
Other non-operating items | 380 | 139 |
Page | |||||
Condensed Consolidated Statements of Operations for the six months ended June 30, 2021 and June 30, 2020 (unaudited) | |||||
Condensed Consolidated Statements of Comprehensive Income for the six months ended June 30, 2021 and June 30, 2020 (unaudited) | |||||
Condensed Consolidated Balance Sheets as of June 30, 2021 and December 31, 2020 (unaudited) | |||||
Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2021 and June 30, 2020 (unaudited) | |||||
Condensed Consolidated Statements of Changes in Equity for the six months ended June 30, 2021 and June 30, 2020 (unaudited) | |||||
Notes to the Unaudited Condensed Consolidated Interim Financial Statements |
2021 | 2020 | ||||||||||
Operating revenues | |||||||||||
Time charter revenues | |||||||||||
Voyage charter revenues | |||||||||||
Other income | |||||||||||
Total operating revenues | |||||||||||
Other operating gains | |||||||||||
Voyage expenses and commissions | |||||||||||
Contingent rental (income) expense | ( | ||||||||||
Ship operating expenses | |||||||||||
Charter hire expense | |||||||||||
Administrative expenses | |||||||||||
Depreciation | |||||||||||
Total operating expenses | |||||||||||
Net operating income | |||||||||||
Other income (expenses) | |||||||||||
Interest income | |||||||||||
Interest expense | ( | ( | |||||||||
Gain (loss) on marketable securities | ( | ||||||||||
Share of results of associated companies | ( | ( | |||||||||
Foreign currency exchange loss | ( | ( | |||||||||
Gain (loss) on derivatives | ( | ||||||||||
Other non-operating items | |||||||||||
Net other expenses | ( | ( | |||||||||
Net income before income taxes and non-controlling interest | |||||||||||
Income tax benefit | |||||||||||
Net income | |||||||||||
Net income attributable to non-controlling interest | ( | ||||||||||
Net income attributable to the Company | |||||||||||
Basic earnings per share attributable to the Company | $ | $ | |||||||||
Diluted earnings per share attributable to the Company | $ | $ | |||||||||
2021 | 2020 | ||||||||||
Comprehensive income | |||||||||||
Net income | |||||||||||
Foreign currency translation loss | ( | ( | |||||||||
Other comprehensive loss | ( | ( | |||||||||
Comprehensive income | |||||||||||
Comprehensive income attributable to non-controlling interest | |||||||||||
Comprehensive income attributable to the Company | |||||||||||
Comprehensive income |
2021 | 2020 | ||||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | |||||||||||
Restricted cash | |||||||||||
Marketable securities | |||||||||||
Marketable securities pledged to creditors | |||||||||||
Trade accounts receivable, net | |||||||||||
Related party receivables | |||||||||||
Other receivables | |||||||||||
Inventories | |||||||||||
Voyages in progress | |||||||||||
Prepaid expenses and accrued income | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Long-term assets | |||||||||||
Newbuildings | |||||||||||
Vessels and equipment, net | |||||||||||
Vessels and equipment under finance leases, net | |||||||||||
Right-of-use assets under operating leases | |||||||||||
Investment in associated company | |||||||||||
Goodwill | |||||||||||
Loan notes receivable | |||||||||||
Long-term derivative instruments receivable | |||||||||||
Other long-term assets | |||||||||||
Total assets | |||||||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities | |||||||||||
Short-term debt and current portion of long-term debt | |||||||||||
Current portion of obligations under finance leases | |||||||||||
Current portion of obligations under operating leases | |||||||||||
Related party payables | |||||||||||
Trade accounts payable | |||||||||||
Accrued expenses | |||||||||||
Derivative instruments payable | |||||||||||
Other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term liabilities | |||||||||||
Long-term debt | |||||||||||
Obligations under finance leases | |||||||||||
Obligations under operating leases | |||||||||||
Other long-term liabilities |
Total liabilities | |||||||||||
Commitments and contingencies | |||||||||||
Equity | |||||||||||
Share capital ( | |||||||||||
Additional paid in capital | |||||||||||
Contributed surplus | |||||||||||
Accumulated other comprehensive income | |||||||||||
Retained earnings | |||||||||||
Total equity attributable to the Company | |||||||||||
Non-controlling interest | ( | ( | |||||||||
Total equity | |||||||||||
Total liabilities and equity |
2021 | 2020 | ||||||||||
Net cash provided by operating activities | |||||||||||
Additions to newbuildings, vessels and equipment | ( | ( | |||||||||
Marketable securities acquired | ( | ||||||||||
Investment in associated company | ( | ||||||||||
Net proceeds from sale of vessel | |||||||||||
Cash inflow from sale of subsidiary | |||||||||||
Cash outflow on issuance of loan to associated company | ( | ||||||||||
Trafigura asset acquisition | ( | ||||||||||
Proceeds from sale of marketable securities | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Proceeds from issuance of debt | |||||||||||
Repayment of long-term debt | ( | ( | |||||||||
Repayment of finance leases | ( | ( | |||||||||
Net proceeds from issuance of shares | |||||||||||
Lease termination compensation receipt | |||||||||||
Debt fees paid | ( | ( | |||||||||
Dividends paid | ( | ||||||||||
Net cash provided by financing activities | |||||||||||
Net change in cash and cash equivalents and restricted cash | ( | ||||||||||
Cash and cash equivalents and restricted cash at beginning of period | |||||||||||
Cash and cash equivalents and restricted cash at end of period |
2021 | 2020 | ||||||||||
Number of shares outstanding | |||||||||||
Balance at beginning of the period | |||||||||||
Shares issued on exercise of options | |||||||||||
Balance at the end of the period | |||||||||||
Share capital | |||||||||||
Balance at beginning of the period | |||||||||||
Shares issued on exercise of options | |||||||||||
Balance at the end of the period | |||||||||||
Additional paid in capital | |||||||||||
Balance at beginning of the period | |||||||||||
Stock compensation expense | ( | ( | |||||||||
Shares issued on exercise of options | |||||||||||
Balance at end of the period | |||||||||||
Contributed surplus | |||||||||||
Balance at beginning of the period | |||||||||||
Cash dividend | ( | ||||||||||
Balance at end of the period | |||||||||||
Accumulated other comprehensive income | |||||||||||
Balance at beginning of the period | |||||||||||
Other comprehensive loss | ( | ( | |||||||||
Balance at end of the period | |||||||||||
Retained earnings (deficit) | |||||||||||
Balance at beginning of the period | ( | ||||||||||
Net income attributable to the Company | |||||||||||
Cash dividend | ( | ||||||||||
Balance at end of the period | |||||||||||
Total equity attributable to the Company | |||||||||||
Non-controlling interest | |||||||||||
Balance at beginning of the period | ( | ||||||||||
Net income attributable to non-controlling interest | |||||||||||
Balance at end of the period | ( | ||||||||||
Total equity |
(in thousands of $) | 2021 | 2020 | ||||||
Net income attributable to the Company |
(in thousands) | 2021 | 2020 | ||||||
Weighted average number of shares | ||||||||
Dilutive effect of share options | ||||||||
Dilutive effect of contingently returnable shares | ||||||||
Denominator for diluted earnings per share | ||||||||
2021 | 2020 | |||||||
Cash dividends per share declared | $ |
(in thousands of $) | Lease | Non-lease | Total | ||||||||
Time charter revenues | |||||||||||
Voyage charter revenues | |||||||||||
Other income | |||||||||||
Total |
(in thousands of $) | Lease | Non-lease | Total | ||||||||
Time charter revenues | |||||||||||
Voyage charter revenues | |||||||||||
Other income | |||||||||||
Total |
(in thousands of $) | 2021 | 2020 | ||||||
Voyages in progress | ||||||||
Trade accounts receivable | ||||||||
Related party receivables | ||||||||
Other current assets | ||||||||
Total | ||||||||
(in thousands of $) | 2021 | 2020 | ||||||
Gain on termination of vessel lease | ||||||||
Gain on sale of vessel | ||||||||
Gain on settlement of claim | ||||||||
Gain on pool arrangements | ||||||||
Other gains | ||||||||
Other operating gains |
(in thousands of $) | 2021 | 2020 | ||||||
Balance at beginning of period | ||||||||
Marketable securities acquired | ||||||||
Proceeds from sale of marketable securities | ( | |||||||
Unrealized gain (loss) on marketable securities held at period end | ( | |||||||
Gain on sale of marketable securities | ||||||||
Repurchase of marketable securities pledged to creditors | ||||||||
Marketable securities pledged to creditors | ( | |||||||
Balance at end of period |
(in thousands of $) | |||||
Balance at December 31, 2020 | |||||
Additions, net | |||||
Interest capitalized | |||||
Transfer to Vessels and Equipment, net | ( | ||||
Balance at June 30, 2021 |
(in thousands of $) | Cost | Accumulated Depreciation | Net Carrying Value | ||||||||
Balance at December 31, 2020 | ( | ||||||||||
Depreciation | ( | ||||||||||
Additions to vessels and equipment | |||||||||||
Transfers from Newbuildings | |||||||||||
Balance at June 30, 2021 | ( |
(in thousands of $) | Cost | Accumulated Depreciation | Net Carrying Value | ||||||||
Balance at December 31, 2020 | ( | ||||||||||
Depreciation | — | ( | — | ||||||||
Balance at June 30, 2021 | ( |
(in thousands of $) | |||||||||||
Year 1 | |||||||||||
Year 2 | |||||||||||
Year 3 | |||||||||||
Year 4 | |||||||||||
Year 5 | |||||||||||
Thereafter | |||||||||||
Minimum lease payments | |||||||||||
Less: imputed interest | ( | ||||||||||
Present value of obligations under finance leases |
(in thousands of $) | ||||||||
2021 | ||||||||
2022 | ||||||||
2023 | ||||||||
2024 | ||||||||
2025 | ||||||||
Thereafter | ||||||||
Minimum lease payments | ||||||||
Less: imputed interest | ( | |||||||
Present value of obligations under finance leases |
(in thousands of $) | June 30, 2021 | June 30, 2020 | ||||||
Depreciation of vessels under finance leases | ( | ( | ||||||
Interest expense on obligations under finance leases | ( | ( | ||||||
Contingent rental income (expense) | ( | |||||||
Gain on termination of vessel lease | ||||||||
Total finance lease expense, net | ( | ( |
(in thousands of $) | ||||||||
Year 1 | ||||||||
Year 2 | ||||||||
Year 3 | ||||||||
Year 4 | ||||||||
Year 5 | ||||||||
Thereafter | ||||||||
Total minimum lease payments | ||||||||
Less: Imputed interest | ( | |||||||
Present value of operating lease liabilities |
(in thousands of $) | ||||||||
2021 | ||||||||
2022 | ||||||||
2023 | ||||||||
2024 | ||||||||
2025 | ||||||||
Thereafter | ||||||||
Total minimum lease payments | ||||||||
Less: Imputed interest | ( | |||||||
Present value of operating lease liabilities |
(in thousands of $) | ||||||||
Year 1 | ||||||||
Year 2 | ||||||||
Year 3 | ||||||||
Year 4 | ||||||||
Year 5 | ||||||||
Thereafter | ||||||||
Total minimum lease payments |
(in thousands of $) | 2021 | 2020 | ||||||
Vessels and equipment, net |
Notional Amount | Inception Date | Maturity Date | Fixed Interest Rate | ||||||||
($000s) | |||||||||||
September 2014 | September 2021 | % | |||||||||
February 2016 | February 2026 | % | |||||||||
March 2020 | March 2027 | % | |||||||||
March 2020 | March 2027 | % | |||||||||
March 2020 | March 2025 | % | |||||||||
April 2020 | April 2027 | % | |||||||||
April 2020 | April 2025 | % | |||||||||
2021 | 2020 | ||||||||||||||||
(in thousands of $) | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | |||||||||||||||||
Restricted cash | |||||||||||||||||
Marketable securities | |||||||||||||||||
Marketable securities pledged to creditors | |||||||||||||||||
Derivative instruments receivable | |||||||||||||||||
Liabilities: | |||||||||||||||||
Floating rate debt | |||||||||||||||||
Fixed rate debt | |||||||||||||||||
Derivative instruments payable |
(in thousands of $) | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | |||||||||||||||||
Restricted cash | |||||||||||||||||
Marketable securities | |||||||||||||||||
Derivative instruments receivable | |||||||||||||||||
Liabilities: | |||||||||||||||||
Floating rate debt | |||||||||||||||||
Fixed rate debt | |||||||||||||||||
Derivative instruments payable |
(in thousands of $) | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | |||||||||||||||||
Restricted cash | |||||||||||||||||
Marketable securities | |||||||||||||||||
Marketable securities pledged to creditors | |||||||||||||||||
Liabilities: | |||||||||||||||||
Floating rate debt | |||||||||||||||||
Fixed rate debt | |||||||||||||||||
Derivative instruments payable |
(in thousands of $) | 2021 | 2020 | ||||||
Charter hire payable (principal and interest) | ||||||||
Lease interest expense | ||||||||
Contingent rental (income) expense | ( | |||||||
Remaining lease obligation | ||||||||
(in thousands of $) | 2021 | 2020 | ||||||
Seatankers Management Co. Ltd | ||||||||
SFL | ||||||||
Golden Ocean | ||||||||
Flex LNG Ltd | ||||||||
Seatankers Management Norway AS | ( | ( | ||||||
Seadrill Limited | ||||||||
Archer Limited | ||||||||
Alta Trading UK Limited | ||||||||
Avance Gas | ||||||||
TFG Marine | ||||||||
Other related parties |
(in thousands of $) | 2021 | 2020 | ||||||
SFL | ||||||||
Seatankers Management Co. Ltd | ||||||||
Archer Limited | ||||||||
Alta Trading UK Limited | ||||||||
Golden Ocean | ||||||||
Seadrill Limited | ||||||||
Flex LNG Ltd | ||||||||
Avance Gas | ||||||||
TFG Marine | ||||||||
Other related parties | ||||||||
(in thousands of $) | 2021 | 2020 | ||||||
SFL | ||||||||
Seatankers Management Co. Ltd | ||||||||
Avance Gas | ||||||||
Flex LNG Ltd | ||||||||
Golden Ocean | ||||||||
TFG Marine | ||||||||
Cover Page |
6 Months Ended |
---|---|
Jun. 30, 2021 | |
Cover [Abstract] | |
Document Type | 6-K |
Document Period End Date | Jun. 30, 2021 |
Entity File Number | 001-16601 |
Entity Registrant Name | FRONTLINE LTD. |
Entity Address, Address Line One | Par-la-Ville Place |
Entity Address, Address Line Two | 14 Par-la-Ville Road |
Entity Address, City or Town | Hamilton |
Entity Address, Postal Zip Code | HM 08 |
Entity Address, Country | BM |
Entity Central Index Key | 0000913290 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 2,264 | $ 365,056 |
Foreign currency translation loss | (26) | (36) |
Other comprehensive loss | (26) | (36) |
Comprehensive income | 2,238 | 365,020 |
Comprehensive income attributable to non-controlling interest | 0 | 63 |
Comprehensive income attributable to the Company | $ 2,238 | $ 364,957 |
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Equity | ||
Share capital, shares outstanding (in shares) | 197,692,321 | 197,692,321 |
Par value (in dollars per share) | $ 1.00 | $ 1.00 |
INTERIM FINANCIAL DATA |
6 Months Ended |
---|---|
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
INTERIM FINANCIAL DATA | INTERIM FINANCIAL DATAThe Unaudited Condensed Consolidated Interim Financial Statements of Frontline Ltd. (“Frontline” or the “Company”) have been prepared on the same basis as the Company’s Audited Consolidated Financial Statements, except as noted below in Note 2, and, in the opinion of management, include all material adjustments, consisting only of normal recurring adjustments considered necessary for a fair statement of the Company's financial statements, in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The Unaudited Condensed Consolidated Interim Financial Statements should be read in conjunction with the Annual Consolidated Financial Statements and accompanying Notes included in the Annual Report on Form 20-F for the year ended December 31, 2020, filed with the Securities and Exchange Commission on March 18, 2021. The Unaudited Condensed Consolidated Interim Financial Statements do not include all the disclosures required by US GAAP. The results of operations for the interim period ended June 30, 2021 are not necessarily indicative of the results for the year ending December 31, 2021. The year-end Condensed Consolidated Balance Sheet was derived from audited financial information, but does not include all disclosures required by US GAAP. |
ACCOUNTING POLICIES |
6 Months Ended |
---|---|
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
ACCOUNTING POLICIES | ACCOUNTING POLICIES Basis of accounting The Unaudited Condensed Consolidated Interim Financial Statements are prepared in accordance with US GAAP. The Unaudited Condensed Consolidated Interim Financial Statements include the assets and liabilities of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated on consolidation. The Unaudited Condensed Consolidated Interim Financial Statements are prepared in accordance with the accounting policies, which are described in the Company's Annual Report on Form 20-F for the year ended December 31, 2020, which was filed with the Securities and Exchange Commission on March 18, 2021.
|
RECENT ACCOUNTING PRONOUNCMENTS |
6 Months Ended |
---|---|
Jun. 30, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTSIn March 2020, the FASB issued ASU 2020-04 (ASC 848 Reference Rate Reform), which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In January 2021, the FASB issued ASU 2021-01, which clarified the scope of Topic 848 in relation to derivative instruments and contract modifications. The amendments in these updates are elective and apply to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in these updates are effective for all entities as of March 12, 2020 through December 31, 2022. The Company has determined that reference rate reforms will primarily impact its floating rate debt facilities and the interest rate derivatives to which it is a party. We expect to take advantage of the expedients and exceptions for applying GAAP provided by the updates when reference rates currently in use are discontinued and replaced with alternative reference rates. |
EARNINGS PER SHARE |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE The components of the numerator and the denominator in the calculation of basic and diluted earnings per share are as follows for the six months ended June 30, 2021 and June 30, 2020:
The impact of stock options using the treasury stock method was dilutive in the six months ended June 30, 2021 as the exercise price was lower than the average share price during the period and, therefore, 105,541 options were included in the denominator in the calculation of diluted earnings per share.
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OPERATING REVENUES |
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OPERATING REVENUES | OPERATING REVENUES Certain of our voyage charter contracts contain a lease. Voyage charters contain a lease component if the contract (i) specifies a specific vessel asset; and (ii) has terms that allow the charterer to exercise substantive decision-making rights, which have an economic value to the charterer and therefore allow the charterer to direct how and for what purpose the vessel is used. Voyage charter revenues and expenses are recognized ratably over the estimated length of each voyage, which the Company has assessed commence on loading of the cargo. ASC 842 Leases provides a practical expedient for lessors in which the lessor may elect, by class of underlying asset, to not separate non-lease components from the associated lease component and, instead, to account for these components as a single component if both of the following are met: (1) the timing and pattern of transfer of the non-lease component(s) and associated lease component are the same and (2) the lease component, if accounted for separately, would be classified as an operating lease. When a lessor, we have elected this expedient for our time charter contracts and voyage charter contracts that qualify as leases and thus do not separate the non-lease component, or service element, from the lease. Furthermore, ASC 842 Leases requires the Company to account for the combined component in accordance with ASC 606 Revenues from contracts with customers if the non-lease components are the predominant components. The Company has assessed that the lease components were the predominant component for all of its time charter contracts. Furthermore, for certain of its voyage charter contracts the lease components were the predominant components. The lease and non-lease components of our revenues in the six months ended June 30, 2021 were as follows:
The lease and non-lease components of our revenues in the six months ended June 30, 2020 were as follows:
Certain voyage expenses are capitalized between the previous discharge port, or contract date if later, and the next load port and amortized between load port and discharge port. $5.2 million of contract assets were capitalized in the period ended June 30, 2021 as "Other current assets", of which $1.9 million was amortized up to June 30, 2021, leaving a remaining balance of $3.3 million as of June 30, 2021. $2.5 million of contract assets were amortized in the six months ended June 30, 2021 in relation to voyages in progress at the end of December 31, 2020. No impairment losses were recognized in the period. As of June 30, 2021 and December 31, 2020, the Company reported the following contract assets in relation to its contracts with customers, including those contracts containing lease components where the non-lease component was the predominant component and the revenues where therefore accounted for under ASC 606:
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OTHER OPERATING GAINS |
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Operating Income (Loss) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER OPERATING GAINS | OTHER OPERATING GAINS Other operating gains for the six months ended June 30, 2021 and June 30, 2020 are as follows:
In February 2020, the Company agreed with SFL to terminate the long-term charter for the 2002-built VLCC Front Hakata upon the sale and delivery of the vessel by SFL to an unrelated third party. Frontline received a compensation payment of $3.2 million from SFL for the termination of the current charter and recognized a gain on termination of $7.4 million. The charter with SFL terminated in February 2020. In March 2020, the Company recorded a $3.4 million gain on settlement of a claim. In April, 2020, the Company sold one VLCC previously recorded as an investment in finance lease at a purchase price of $25.5 million. The vessel was delivered to its buyers in June 2020 and the Company recorded a gain on sale of $12.4 million. In the six months ended June 30, 2021, the Company recorded a gain on pool arrangements of $1.0 million (2020: gain of $0.8 million) and a further $0.1 million (2020: $0.3 million) in relation to other miscellaneous settlements.
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RESTRICTED CASH |
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Jun. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
RESTRICTED CASH | RESTRICTED CASHRestricted cash consists of cash, which may only be used for certain purposes and is held under a contractual arrangement. Restricted cash as of June 30, 2021 does not include cash balances of $102.8 million (December 2020: $103.5 million), which represents 100% (December 2020: 100%) of the cash required to be maintained by the financial covenants in our loan agreements. The Company is permitted to satisfy up to 50% of the cash requirement by maintaining a committed undrawn credit facility with a remaining availability of greater than 12 months. The Company did not satisfy any of the minimum cash requirement with a committed undrawn credit facility as of June 30, 2021 because the Company's senior unsecured facility agreement with an affiliate of Hemen, is repayable in May 2022. Furthermore, FSL, the chartering counterparty with SFL with respect to the remaining two VLCCs leased from them, has agreed to certain dividend restrictions as a result of the amendment of the terms of the long-term charter agreements in May 2015. In order to make or pay any dividend or other distribution to the Company, FSL shall demonstrate a cash buffer of $2.0 million per vessel both prior to and following such payment, and following payment of the next monthly hire due plus any profit share accrued under the agreement. As of June 30, 2021, the cash held by FSL was $5.3 million (December 31, 2020: $15.6 million), and these cash amounts are included in "Cash and cash equivalents". Our interest rate swaps require us to post cash as collateral based on their fair value. As at June 30, 2021, the restricted cash balance included $1.1 million (December 31, 2020: $13.4 million) in relation to our interest rate swaps. See Note 15 for additional information on our interest rate swaps.
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MARKETABLE SECURITIES |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MARKETABLE SECURITIES | MARKETABLE SECURITIES A summary of the movements in marketable securities for the six months ended June 30, 2021 and the year ended December 31, 2020 is presented in the table below:
Avance Gas In the six months ended June 30, 2021, the Company recognized an unrealized loss of $0.1 million in relation to the 0.4 million shares held in Avance Gas Holdings Ltd ("Avance Gas"). SFL In the six months ended June 30, 2021, the Company recognized an unrealized gain of $0.1 million in relation to the 0.1 million shares held in SFL. Golden Ocean As of December 31, 2020, the Company held 1,270,657 shares of Golden Ocean, of which 1,260,358 were held as marketable securities pledged to creditors ("the shares"). In December 2020, the Company entered into a forward contract to repurchase the shares in March 2021 for $6.2 million. In March 2021, the Company repurchased the Golden Ocean shares and subsequently sold them for proceeds of $9.8 million. Simultaneously, the Company entered into a forward contract to repurchase the shares in June 2021 for $9.8 million and received net cash proceeds of $3.6 million in connection therewith, after adjustment for foreign exchange differences. The net cash proceeds were treated as a drawdown of debt in the Condensed Consolidated Statement of Cash Flows. In June 2021, the Company repurchased the Golden Ocean shares and subsequently sold them for proceeds of $13.4 million. The repurchase of the shares for $9.8 million was treated as a settlement of debt in the Condensed Consolidated Statement of Cash Flows. In the six months ended June 30, 2021, the Company recognized a gain on marketable securities sold of $7.6 million in relation to the Golden Ocean shares. In April 2021, the Company purchased 55,959 Golden Ocean shares in connection with the exercise of subscription rights in the subsequent offering for $0.4 million. In June 2021, the Company sold these shares for proceeds of $0.7 million, resulting in a gain on marketable securities sold of $0.3 million in the six months ended June 30, 2021. In the six months ended June 30, 2021, the Company recognized an unrealized gain of $0.1 million in relation to the 10,299 shares in Golden Ocean still held as of June 30, 2021, none of which were held as marketable securities pledged to creditors as of this date.
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NEWBUILDINGS |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
NEWBUILDINGS | NEWBUILDINGS Movements in the six months ended June 30, 2021 are summarized as follows;
In the six months ended June 30, 2021, the Company took delivery of two LR2 tanker, Front Fusion and Front Future, from SWS. As of June 30, 2021, the Company’s newbuilding program consisted of two LR2 tankers which are expected to be delivered in September 2021 and November 2021, respectively, and six VLCCs which are expected to be delivered during 2022 starting in Q1.
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VESSELS AND EQUIPMENT, NET |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
VESSELS AND EQUIPMENT, NET | VESSELS AND EQUIPMENT, NET Movements in the six months ended June 30, 2021 are summarized as follows;
In the six months ended June 30, 2021, the Company took delivery of two LR2 tankers, Front Fusion and Front Future, from SWS. The Company also completed the installation of EGCSs on one vessel during the period.
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VESSELS AND EQUIPMENT UNDER FINANCE LEASE, NET |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
VESSELS AND EQUIPMENT UNDER FINANCE LEASE, NET | VESSELS AND EQUIPMENT UNDER FINANCE LEASE, NET As of June 30, 2021, the Company leased in two vessels on long-term time charter from SFL (December 2020: two vessels) which are classified as finance leases.
The outstanding obligations under finance leases as of June 30, 2021 are payable as follows:
The outstanding obligations under finance leases as of December 31, 2020 are payable as follows:
The Company recognized the following income (expenses) in relation to the amortization of finance lease assets and obligations in the six months ended June 30, 2021 and June 30, 2020:
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OPERATING LEASES |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OPERATING LEASES | OPERATING LEASES In the six months ended June 30, 2021, the Company redelivered two VLCCs to an unrelated third party at the end of the charter-in agreement that were previously classified as operating leases. The Company has allocated the consideration due under the leases between the lease and non-lease components based upon the estimated standalone price of the services provided by the owner of the vessels, which include the provision of crewing, vessel insurance, repairs and maintenance and lubes. In the six months ended June 30, 2021, the Company has recorded the non-lease component of $1.7 million ($3.3 million in the six months ended June 30, 2020) within ship operating expenses and has recognized the lease component of $2.6 million ($4.5 million in the six months ended June 30, 2020) within charter hire expense within the Condensed Consolidated Statement of Operations. Furthermore, the Company is committed to make rental payments under operating leases for office premises. Certain of these leases include variable lease elements linked to inflation indices. Such variable payments were estimated on the date of adoption of ASC 842 based on the index at that time and included in the minimum lease payments. In the six months ended June 30, 2021, lease expense of $0.9 million ($1.2 million in the six months ended June 30, 2020) was recorded in Administrative expenses in the Condensed Consolidated Statement of Operations. Rental expense The future minimum rental payments under the Company's non-cancellable operating leases as of June 30, 2021 are as follows:
The future minimum rental payments under the Company's non-cancellable operating leases as of December 31, 2020 are as follows:
Total expense for operating leases was $3.5 million in the six months ended June 30, 2021 (2020: $5.8 million). Total cash paid in respect of operating leases was $3.5 million in the six months ended June 30, 2021 (2020: $5.7 million). The weighted average discount in relation to the operating leases was 3.3% for the six months ended June 30, 2021 (2020: 3.8%) and the weighted average lease term was four years (2020: three years) for the six months ended June 30, 2021. Rental income One LR2 tanker and two VLCCs were on fixed rate time charters of December 31, 2020, the terms of which all ended in the six months ended June 30, 2021. In addition, Frontline has chartered-out five vessels to Trafigura, for a period of three years commencing in August 2019, at a daily base rate of $28,400 plus 50% profit share. The minimum future revenues to be received under our fixed rate contracts as of June 30, 2021 are as follows:
Profit share to be earned under our chartering arrangements has been excluded from the minimum future revenues above. Our revenues from these leases have been included within time charter revenues in the Condensed Consolidated Statement of Operations, which solely relates to leasing revenues. There are no options to extend our operating leases where we are the lessor. The cost and accumulated depreciation of vessels leased to third parties as of June 30, 2021 were $328.0 million and $15.1 million, respectively, and as of December 31, 2020 were $509.5 million and $49.4 million, respectively. Contingent rental income In the six months ended June 30, 2021, the Company recognized profit share income of nil in relation to the five time charters to Trafigura (2020: $6.3 million).
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OPERATING LEASES | OPERATING LEASES In the six months ended June 30, 2021, the Company redelivered two VLCCs to an unrelated third party at the end of the charter-in agreement that were previously classified as operating leases. The Company has allocated the consideration due under the leases between the lease and non-lease components based upon the estimated standalone price of the services provided by the owner of the vessels, which include the provision of crewing, vessel insurance, repairs and maintenance and lubes. In the six months ended June 30, 2021, the Company has recorded the non-lease component of $1.7 million ($3.3 million in the six months ended June 30, 2020) within ship operating expenses and has recognized the lease component of $2.6 million ($4.5 million in the six months ended June 30, 2020) within charter hire expense within the Condensed Consolidated Statement of Operations. Furthermore, the Company is committed to make rental payments under operating leases for office premises. Certain of these leases include variable lease elements linked to inflation indices. Such variable payments were estimated on the date of adoption of ASC 842 based on the index at that time and included in the minimum lease payments. In the six months ended June 30, 2021, lease expense of $0.9 million ($1.2 million in the six months ended June 30, 2020) was recorded in Administrative expenses in the Condensed Consolidated Statement of Operations. Rental expense The future minimum rental payments under the Company's non-cancellable operating leases as of June 30, 2021 are as follows:
The future minimum rental payments under the Company's non-cancellable operating leases as of December 31, 2020 are as follows:
Total expense for operating leases was $3.5 million in the six months ended June 30, 2021 (2020: $5.8 million). Total cash paid in respect of operating leases was $3.5 million in the six months ended June 30, 2021 (2020: $5.7 million). The weighted average discount in relation to the operating leases was 3.3% for the six months ended June 30, 2021 (2020: 3.8%) and the weighted average lease term was four years (2020: three years) for the six months ended June 30, 2021. Rental income One LR2 tanker and two VLCCs were on fixed rate time charters of December 31, 2020, the terms of which all ended in the six months ended June 30, 2021. In addition, Frontline has chartered-out five vessels to Trafigura, for a period of three years commencing in August 2019, at a daily base rate of $28,400 plus 50% profit share. The minimum future revenues to be received under our fixed rate contracts as of June 30, 2021 are as follows:
Profit share to be earned under our chartering arrangements has been excluded from the minimum future revenues above. Our revenues from these leases have been included within time charter revenues in the Condensed Consolidated Statement of Operations, which solely relates to leasing revenues. There are no options to extend our operating leases where we are the lessor. The cost and accumulated depreciation of vessels leased to third parties as of June 30, 2021 were $328.0 million and $15.1 million, respectively, and as of December 31, 2020 were $509.5 million and $49.4 million, respectively. Contingent rental income In the six months ended June 30, 2021, the Company recognized profit share income of nil in relation to the five time charters to Trafigura (2020: $6.3 million).
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DEBT |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||
DEBT | DEBT In February 2021, the Company extended the terms of its senior unsecured revolving credit facility of up to $275.0 million with an affiliate of Hemen by 12 months to May 2022. In the six months ended June 30, 2021, the Company drew down $101.7 million under the facility to finance installments for the six VLCCs under construction. $113.3 million remains available and undrawn under this facility as of June 30, 2021. The Company drew down $33.4 million in March 2021 and $33.4 million in April 2021 under its senior secured term loan facility of up to $133.7 million with CEXIM and Sinosure to partially finance the delivery of two LR2 tankers, Front Fusion and Front Future, respectively, from SWS. The facility has a tenor of 12 years, carries an interest rate of LIBOR plus a margin in line with the Company's other loan facilities and has an amortization profile of 17 years counting from delivery date from the yard. Golden Ocean shares As of December 31, 2020, the Company held 1,270,657 shares of Golden Ocean, of which 1,260,358 were held as marketable securities pledged to creditors ("the shares"). In December 2020, the Company entered into a forward contract to repurchase the shares in March 2021 for $6.2 million. In March 2021, the Company repurchased the Golden Ocean shares and subsequently sold them for the proceeds of $9.8 million. Simultaneously, the Company entered into a forward contract to repurchase the shares in June 2021 for $9.8 million and received net cash proceeds of $3.6 million in connection therewith, after adjustment for foreign exchange differences. The net cash proceeds were treated as a drawdown of debt in the Condensed Consolidated Statement of Cash Flows. In June 2021, the Company repurchased the Golden Ocean shares and subsequently sold them for proceeds of $13.4 million. The repurchase of the shares for $9.8 million was treated as a settlement of debt in the Condensed Consolidated Statement of Cash Flows. Debt issuance costs The Company has recorded debt issuance costs (i.e. deferred charges) of $19.7 million as of June 30, 2021 (December 31, 2020: $20.2 million) as a direct deduction from the carrying amount of the related debt. Assets pledged
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SHARE CAPITAL |
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Jun. 30, 2021 | |
SHARE CAPITAL [Abstract] | |
SHARE CAPITAL | SHARE CAPITALThe authorized share capital of the Company as of June 30, 2021 is $500,000,000 divided into 500,000,000 shares of $1.00 par value each, of which 197,692,321 shares (December 31, 2020: 197,692,321 shares) of $1.00 par value each are in issue and fully paid. |
FINANCIAL INSTRUMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS Interest rate swap agreements In February 2013, the Company entered into six interest rate swaps with Nordea Bank, of which one remained outstanding as of June 30, 2021, whereby the floating interest rate on an original principal amount of $260.0 million was switched to fixed rate. In February 2016, the Company entered into an interest rate swap with DNB whereby the floating interest on notional debt of $150.0 million was switched to a fixed rate. The contract had a forward start date of February 2019. In March 2020, the Company entered into three interest rate swaps with DNB whereby the floating interest rate on notional debt totaling $250.0 million was switched to a fixed rate. In April 2020, the Company entered into two interest rate swaps with Nordea Bank whereby the floating interest rate on notional debt totaling $150.0 million was switched to a fixed rate. The reference rate for our interest rate swaps is LIBOR. As of June 30, 2021, the Company recorded a derivative instruments receivable of $4.6 million (December 31, 2020: nil ) and a derivative instruments liability of $10.0 million (December 31, 2020: $19.3 million) in relation to these agreements. The Company recorded a gain on derivatives of $11.0 million in the six months ended June 30, 2021 (six months ended June 30, 2020: loss of $21.7 million) in relation to these agreements. The interest rate swaps are not designated as hedges and are summarized as of June 30, 2021 as follows:
Fair Values The carrying value and estimated fair value of the Company's financial assets and liabilities as of June 30, 2021 and December 31, 2020 are as follows:
The estimated fair value of financial assets and liabilities as of June 30, 2021 are as follows:
The estimated fair value of financial assets and liabilities as of December 31, 2020 are as follows:
The following methods and assumptions were used to estimate the fair value of each class of financial instrument; Cash and cash equivalents – the carrying values in the balance sheet approximate fair value. Restricted cash – the carrying values in the balance sheet approximate fair value. Floating rate debt - the fair value of floating rate debt has been determined using level 2 inputs and is considered to be equal to the carrying value since it bears variable interest rates, which are reset on a quarterly basis. Floating rate debt is presented net of deferred financing charges of $19.7 million as of June 30, 2021 (December 2020: $20.2 million) on the Condensed Consolidated Balance Sheet. Fixed rate debt - short-term debt held with a third party bank has been valued using level 2 inputs, the remaining fixed rate debt has been determined using level 3 inputs being the discounted expected cash flows of the outstanding debt. Assets Measured at Fair Value on a Nonrecurring Basis Nonrecurring fair value measurements include a goodwill impairment assessment completed as of June 30, 2021. The impairment test used Level 1 inputs. Assets Measured at Fair Value on a Recurring Basis Marketable securities are listed equity securities considered to be available-for-sale securities for which the fair value as at the balance sheet date is their aggregate market value based on quoted market prices (level 1). The fair value (level 2) of derivative interest rate swaps is the present value of the estimated future cash flows that the Company would receive or pay to terminate the agreements at the balance sheet date, taking into account, as applicable, fixed interest rates on interest rate swaps, current interest rates, forward rate curves, current and future bunker prices and the credit worthiness of both the Company and the derivative counterparty. Concentrations of risk There is a concentration of credit risk with respect to cash and cash equivalents to the extent that substantially all of the amounts are carried with Skandinaviska Enskilda Banken ("SEB"), HSBC, Royal Bank of Scotland ("RBS"), DNB, Nordea Bank Norge ("Nordea"), Credit Agricole, Credit Suisse AG, Standard Chartered and Citibank N.A.. There is a concentration of credit risk with respect to restricted cash to the extent that substantially all of the amounts are carried with DNB. However, the Company believes this risk is remote.
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RELATED PARTY TRANSACTIONS |
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Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS We transact business with the following related parties, being companies in which Hemen and companies associated with Hemen have a significant interest: SFL, Seadrill Limited, Seatankers Management Norway AS, Seatankers Management Co. Ltd, Golden Ocean, Alta Trading UK Limited (formerly known as Arcadia Petroleum Limited), Archer Limited, Flex LNG Ltd, and Avance Gas. We also own interests in TFG Marine and Clean Marine AS (through our interest in FMS Holdco) which are accounted for as equity method investments. SFL Transactions As of June 30, 2021, the Company held two vessels under finance leases, which are leased from SFL. The remaining periods on these leases as of June 30, 2021 was approximately six years. A summary of leasing transactions with SFL in the six months ended June 30, 2021 and June 30, 2020 are as follows;
Contingent rental income in 2021 (expense in 2020) is due to the fact that the actual profit share expense earned by SFL in the six months ended June 30, 2021 of $0.3 million (six months ended June 30, 2020: $10.4 million) was $1.6 million less (six months ended June 30, 2020: $8.3 million more) than the amount accrued in the lease obligation payable when the leases were recorded at fair value at the time of the merger between the Company and Frontline 2012. In January 2014, the Company commenced a pooling arrangement with SFL, between two of its Suezmax tankers Front Odin and Front Njord and two SFL vessels Glorycrown and Everbright. The Company recognized an income of $1.0 million in the six months ended June 30, 2021 in relation to this pooling arrangement (six months ended June 30, 2020: income of $0.7 million). Transactions with associated companies A share of losses of TFG Marine of $0.7 million was recognized in the six months ended June 30, 2021. The Company also entered into a bunker supply arrangement with TFG Marine, under which it has paid $107.8 million to TFG Marine in the six months ended June 30, 2021 and $14.0 million remained due as of June 30, 2021. The Company has also agreed to provide a $50.0 million guarantee in respect of the performance of its subsidiaries, and two subsidiaries of an affiliate of Hemen, under a bunker supply arrangement with TFG Marine. As of June 30, 2021 there are no exposures under this guarantee. In addition, should TFG Marine be required to provide a parent company guarantee to its bunker suppliers or finance providers then for any guarantee that is provided by the Trafigura Group and becomes payable Frontline shall pay a pro-rata amount based on its share of the equity in TFG Marine. The maximum liability under this guarantee is $6.0 million and there are no amounts payable under this guarantee as of June 30, 2021. Transactions with other affiliates of Hemen In the six months ended June 30, 2021, the Company extended the terms of its senior unsecured revolving credit facility of up to $275.0 million with an affiliate of Hemen by 12 months to May 2022. The Company recognized interest expense of $2.3 million in the six months ended June 30, 2021 (six months ended June 30, 2020: $2.8 million). $113.3 million remains available and undrawn under this facility as of June 30, 2021. In the six months ended June 30, 2021, the Company chartered four of its vessels to an affiliate of Hemen, of which one was a time charter with an initial term of 8 months. The Company recognized revenue of $1.0 million in relation to these charters in the six months ended June 30, 2021. A summary of net amounts earned from (paid to) related parties in the six months ended June 30, 2021 and June 30, 2020 are as follows:
Amounts earned from related parties comprise office rental income, technical and commercial management fees, newbuilding supervision fees, freights, corporate and administrative services income and interest income. Amounts paid to related parties comprise primarily rental for office space and the provision of other administrative services and guarantee fees. Related party balances A summary of balances due from related parties as of June 30, 2021 and December 31, 2020 is as follows:
A summary of balances due to related parties as of June 30, 2021 and December 31, 2020 is as follows:
See also Note 11, Note 13 and Note 17 for details regarding related party transactions and balances.
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COMMITMENTS AND CONTINGENCIES |
6 Months Ended |
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Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Company insures the legal liability risks for its shipping activities with mutual protection and indemnity associations, who are members of the International Group of P&I Clubs. As a member of these mutual associations, the Company is subject to calls payable to the associations based on the Company's claims record in addition to the claims records of all other members of the associations. A contingent liability exists to the extent that the claims records of the members of the associations in the aggregate show significant deterioration, which result in additional calls on the members. As of June 30, 2021, the Company’s newbuilding program consisted of two LR2 tankers; which are expected to be delivered in September and November 2021, respectively, and six VLCCs which are expected to be delivered during 2022 starting in the first quarter. As of June 30, 2021, total instalments of $129.7 million had been paid in connection with the Company's remaining newbuilding program, and remaining commitments amounted to $530.7 million, of which we expect $93.3 million to be paid in 2021 and $437.4 million to be paid in 2022. The Company had entered into forward bunker purchase arrangements for the delivery of 5,000 MT of bunker fuel per month for delivery between October 2020 to December 2021. The contracts oblige the Company to purchase and take delivery of the fixed quantity of physical fuel at prices between $325 per MT and $365 per MT. In addition, the Company has entered into a further arrangement for the delivery of 5,000 MT of bunker fuel per month for delivery between January 2021 to December 2021. The contract obliges the Company to purchase and take delivery of the physical fuel at $232 per MT. As of June 30, 2021, the remaining commitments amounted to $17.9 million, all of which is expected to be paid in 2021. As of June 30, 2021, the Company has agreed to provide a $50.0 million guarantee in respect of the performance of its subsidiaries, and two subsidiaries of an affiliate of Hemen, under a bunker supply arrangement with TFG Marine. As at June 30, 2021 there are no amounts payable under this guarantee. In addition, should TFG Marine be required to provide a parent company guarantee to its bunker suppliers or finance providers then for any guarantee that is provided by the Trafigura Group and becomes payable Frontline shall pay a pro rata amount based on its share of the equity in TFG Marine. The maximum liability under this guarantee is $6.0 million and there are no amounts are payable under this guarantee as of June 30, 2021. See Note 13. for further details. In June 2021, the Company entered into an agreement to acquire two scrubber fitted, latest generation ECO-type VLCCs built in 2019 at the HHI shipyard in South Korea for a total of $180.0 million. The vessels are scheduled to deliver during the fourth quarter of 2021. The Company is a party, as plaintiff or defendant, to several lawsuits in various jurisdictions for unpaid charter hire, demurrage, damages, off-hire and other claims and commercial disputes arising from the operation of its vessels, in the ordinary course of business or in connection with its acquisition activities. The Company believes that the resolution of such claims will not have a material adverse effect on the Company's operations or financial condition individually and in the aggregate.
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SUBSEQUENT EVENTS |
6 Months Ended |
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Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS In July 2021, the Company issued 339,000 ordinary shares under its share option scheme at a strike price of $5.70 per share. The shares were issued to John Fredriksen (198,000 shares), Inger M. Klemp (120,000 shares), and Ola Lorentzon (21,000 shares). Following such issuance, Frontline has an issued share capital of $198,031,321 divided into 198,031,321 ordinary shares. In July 2021, the Company paid deposits of $18.0 million towards the total purchase price of $180.0 million for the two 2019 built VLCCs. In August 2021, the Company obtained a financing commitment for a senior secured term loan facility in an amount of up to $130.0 million from DNB to partially finance the acquisition of two of the six resale VLCC newbuilding contracts. The facility will have a tenor of 5 years, carry an interest rate of LIBOR plus a margin of 170 basis points and will have an amortization profile of 20 years counting from delivery date from the yard. The facility is subject to final documentation. In August 2021, the Company obtained a financing commitment for a senior secured term loan facility in an amount of up to $58.5 million from SEB to partially finance the acquisition of one of the two 2019 built VLCCs. The facility will have a tenor of 5 years, carry an interest rate of LIBOR plus a margin of 170 basis points and will have an amortization profile of 20 years counting from delivery date from the yard. The facility is subject to final documentation. In August 2021, the Company obtained a financing commitment for a senior secured term loan facility in an amount of up to $58.5 million from KFW IPEX-Bank to partially finance the acquisition of one of the two 2019 built VLCCs. The facility will have a tenor of 5 years, carry an interest rate of LIBOR plus a margin of 170 basis points and will have an amortization profile of 20 years counting from delivery date from the yard. The facility is subject to final documentation.
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ACCOUNTING POLICIES (Policies) |
6 Months Ended |
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Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of accounting | Basis of accounting The Unaudited Condensed Consolidated Interim Financial Statements are prepared in accordance with US GAAP. The Unaudited Condensed Consolidated Interim Financial Statements include the assets and liabilities of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated on consolidation. The Unaudited Condensed Consolidated Interim Financial Statements are prepared in accordance with the accounting policies, which are described in the Company's Annual Report on Form 20-F for the year ended December 31, 2020, which was filed with the Securities and Exchange Commission on March 18, 2021.
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Recent accounting pronouncements | RECENT ACCOUNTING PRONOUNCEMENTSIn March 2020, the FASB issued ASU 2020-04 (ASC 848 Reference Rate Reform), which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In January 2021, the FASB issued ASU 2021-01, which clarified the scope of Topic 848 in relation to derivative instruments and contract modifications. The amendments in these updates are elective and apply to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in these updates are effective for all entities as of March 12, 2020 through December 31, 2022. The Company has determined that reference rate reforms will primarily impact its floating rate debt facilities and the interest rate derivatives to which it is a party. We expect to take advantage of the expedients and exceptions for applying GAAP provided by the updates when reference rates currently in use are discontinued and replaced with alternative reference rates. |
EARNINGS PER SHARE (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Weighted Average Number of Shares Outstanding | The components of the numerator and the denominator in the calculation of basic and diluted earnings per share are as follows for the six months ended June 30, 2021 and June 30, 2020:
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OPERATING REVENUES (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease and Non-Lease Components of Revenue | The lease and non-lease components of our revenues in the six months ended June 30, 2021 were as follows:
The lease and non-lease components of our revenues in the six months ended June 30, 2020 were as follows:
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Schedule of Contract Assets | As of June 30, 2021 and December 31, 2020, the Company reported the following contract assets in relation to its contracts with customers, including those contracts containing lease components where the non-lease component was the predominant component and the revenues where therefore accounted for under ASC 606:
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OTHER OPERATING GAINS (Tables) |
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Other Operating Gains | Other operating gains for the six months ended June 30, 2021 and June 30, 2020 are as follows:
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MARKETABLE SECURITIES (Tables) |
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Summary of marketable securities | A summary of the movements in marketable securities for the six months ended June 30, 2021 and the year ended December 31, 2020 is presented in the table below:
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NEWBUILDINGS (Tables) |
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Newbuildings | Movements in the six months ended June 30, 2021 are summarized as follows;
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VESSELS AND EQUIPMENT, NET (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vessels and Equipment, Net | Movements in the six months ended June 30, 2021 are summarized as follows;
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VESSELS AND EQUIPMENT UNDER FINANCE LEASE, NET (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finance Leased Assets |
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Maturities of Finance Leases | The outstanding obligations under finance leases as of June 30, 2021 are payable as follows:
The outstanding obligations under finance leases as of December 31, 2020 are payable as follows:
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Lease Cost | The Company recognized the following income (expenses) in relation to the amortization of finance lease assets and obligations in the six months ended June 30, 2021 and June 30, 2020:
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OPERATING LEASES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Lease Maturity | The future minimum rental payments under the Company's non-cancellable operating leases as of June 30, 2021 are as follows:
The future minimum rental payments under the Company's non-cancellable operating leases as of December 31, 2020 are as follows:
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Schedule of Future Rental Income | The minimum future revenues to be received under our fixed rate contracts as of June 30, 2021 are as follows:
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DEBT (Tables) |
6 Months Ended | |||||||||||||||||||||||||||
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Jun. 30, 2021 | ||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||
Schedule of assets pledged | Assets pledged
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FINANCIAL INSTRUMENTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of interest rate swaps not designated as hedges | The interest rate swaps are not designated as hedges and are summarized as of June 30, 2021 as follows:
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Carrying value and estimated fair value of financial instruments | The carrying value and estimated fair value of the Company's financial assets and liabilities as of June 30, 2021 and December 31, 2020 are as follows:
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Financial assets and liabilities measured at fair value on recurring basis | The estimated fair value of financial assets and liabilities as of June 30, 2021 are as follows:
The estimated fair value of financial assets and liabilities as of December 31, 2020 are as follows:
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RELATED PARTY TRANSACTIONS (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of leasing transactions with related party | A summary of leasing transactions with SFL in the six months ended June 30, 2021 and June 30, 2020 are as follows;
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Schedule of related party receivables and payables | A summary of net amounts earned from (paid to) related parties in the six months ended June 30, 2021 and June 30, 2020 are as follows:
Amounts earned from related parties comprise office rental income, technical and commercial management fees, newbuilding supervision fees, freights, corporate and administrative services income and interest income. Amounts paid to related parties comprise primarily rental for office space and the provision of other administrative services and guarantee fees. Related party balances A summary of balances due from related parties as of June 30, 2021 and December 31, 2020 is as follows:
A summary of balances due to related parties as of June 30, 2021 and December 31, 2020 is as follows:
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EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Earnings Per Share [Abstract] | ||
Net income attributable to the Company | $ 2,264 | $ 364,993 |
Weighted average number of shares (in shares) | 197,692 | 193,559 |
Dilutive effect of share options (in shares) | 106 | 142 |
Dilutive effect of contingently returnable shares (in shares) | 0 | 4,106 |
Denominator for diluted earnings per share (in shares) | 197,798 | 197,807 |
Cash dividends per share declared (in dollars per share) | $ 0 | $ 1.10 |
EARNINGS PER SHARE - Narrative (Details) |
6 Months Ended |
---|---|
Jun. 30, 2021
shares
| |
Earnings Per Share [Abstract] | |
Dilutive shares included in calculation (in shares) | 105,541 |
OPERATING REVENUES - Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Disaggregation of Revenue [Line Items] | ||
Lease | $ 65,544 | $ 590,877 |
Non-lease | 298,466 | 208,027 |
Total revenues | 364,010 | 798,904 |
Time charter revenues | ||
Disaggregation of Revenue [Line Items] | ||
Lease | 42,111 | 76,534 |
Non-lease | 0 | 0 |
Total revenues | 42,111 | 76,534 |
Voyage charter revenues | ||
Disaggregation of Revenue [Line Items] | ||
Lease | 23,433 | 514,343 |
Non-lease | 290,484 | 194,185 |
Total revenues | 313,917 | 708,528 |
Other income | ||
Disaggregation of Revenue [Line Items] | ||
Lease | 0 | 0 |
Non-lease | 7,982 | 13,842 |
Total revenues | $ 7,982 | $ 13,842 |
OPERATING REVENUES - Narrative (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2021 |
Dec. 31, 2020 |
|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Contract assets | $ 82,192 | $ 62,958 |
Impairment loss | 0 | $ 0 |
Balance Capitalized In Current Year | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Gross asset contract with customer | 5,200 | |
Amortization capitalized contract cost | 1,900 | |
Contract assets | 3,300 | |
Balance Capitalized In Prior Year | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Amortization capitalized contract cost | $ 2,500 |
OPERATING REVENUES - Contract Assets (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Capitalized Contract Cost [Line Items] | ||
Contract assets | $ 82,192 | $ 62,958 |
Voyages in progress | ||
Capitalized Contract Cost [Line Items] | ||
Contract assets | 26,601 | 27,621 |
Trade accounts receivable | ||
Capitalized Contract Cost [Line Items] | ||
Contract assets | 42,745 | 25,615 |
Related party receivables | ||
Capitalized Contract Cost [Line Items] | ||
Contract assets | 9,509 | 7,195 |
Other current assets | ||
Capitalized Contract Cost [Line Items] | ||
Contract assets | $ 3,337 | $ 2,527 |
OTHER OPERATING GAINS (Details) - USD ($) $ in Thousands |
1 Months Ended | 6 Months Ended | |
---|---|---|---|
Mar. 31, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Operating Income (Loss) [Abstract] | |||
Gain on termination of vessel lease | $ 0 | $ 7,409 | |
Gain on sale of vessel | 0 | 12,354 | |
Gain on settlement of claim | $ 3,400 | 0 | 3,422 |
Gain on pool arrangements | 1,048 | 766 | |
Other gains | 85 | 268 | |
Other operating gains | $ 1,133 | $ 24,219 |
OTHER OPERATING GAINS - Narrative (Details) $ in Thousands |
1 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Apr. 30, 2020
USD ($)
very_large_crude_carrier
|
Mar. 31, 2020
USD ($)
|
Feb. 29, 2020
USD ($)
|
Jun. 30, 2021
USD ($)
|
Jun. 30, 2020
USD ($)
|
|
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Gain on settlement of claim | $ 3,400 | $ 0 | $ 3,422 | ||
Gain on sale of vessel | 0 | 12,354 | |||
Gain on pooling arrangements | 1,000 | 800 | |||
Gain on miscellaneous settlements | $ 100 | $ 300 | |||
Investment In Finance Lease | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Number of vessels sold recorded as investment in finance lease | very_large_crude_carrier | 1 | ||||
Purchase price consideration | $ 25,500 | ||||
Gain on sale of vessel | $ 12,400 | ||||
SFL | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Compensation received on termination of contract | $ 3,200 | ||||
Gain on contract termination | $ 7,400 |
RESTRICTED CASH (Details) $ in Millions |
6 Months Ended | |||||
---|---|---|---|---|---|---|
Jun. 30, 2021
USD ($)
|
Jun. 30, 2021 |
Jun. 30, 2021
Rate
|
Jun. 30, 2021
very_large_crude_carrier
|
Jun. 30, 2021
vessels
|
Dec. 31, 2020
USD ($)
vessels
|
|
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Cash required to be maintained for covenant compliance | $ 102.8 | $ 103.5 | ||||
Cash required to be maintained for covenant compliance, percentage | 100.00% | 50.00% | 100.00% | |||
Finance lease, number of leased assets | vessels | 2 | 2 | ||||
Cash buffer per vessel, covenant compliance | 2.0 | |||||
Interest rate swap | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Restricted cash | 1.1 | $ 13.4 | ||||
SFL | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Finance lease, number of leased assets | very_large_crude_carrier | 2 | |||||
Cash surplus required for vessel leasing agreements | $ 5.3 | $ 15.6 |
MARKETABLE SECURITIES (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended | |
---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Dec. 31, 2020 |
|
Investments, Debt and Equity Securities [Abstract] | |||
Marketable securities, beginning balance | $ 2,639 | $ 3,642 | $ 3,642 |
Marketable securities acquired | 357 | 0 | 0 |
Proceeds from sale of marketable securities | (14,074) | $ 0 | 0 |
Unrealized gain (loss) on marketable securities held at period end | 34 | (2,491) | |
Gain on sale of marketable securities | 7,881 | 0 | |
Repurchase of marketable securities pledged to creditors | 5,836 | 7,323 | |
Marketable securities pledged to creditors | 0 | (5,835) | |
Marketable securities, ending balance | $ 2,673 | $ 2,639 |
NEWBUILDINGS (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2021
USD ($)
| |
Movement In Construction In Progress [Roll Forward] | |
Balance at December 31, 2020 | $ 48,498 |
Additions, net | 178,715 |
Interest capitalized | 644 |
Transfer to Vessels and Equipment, net | (96,683) |
Balance at June 30, 2021 | $ 131,174 |
NEWBUILDINGS - Narrative (Details) |
6 Months Ended |
---|---|
Jun. 30, 2021
large_range_2Tanker_vessel_type
very_large_crude_carrier
| |
Property, Plant and Equipment [Line Items] | |
Number of newbuild vessels delivered | 2 |
Number of newbuild vessels | 2 |
September And November 2021 Delivery | |
Property, Plant and Equipment [Line Items] | |
Number of newbuild vessels | 2 |
2022 Delivery | |
Property, Plant and Equipment [Line Items] | |
Number of newbuild vessels | very_large_crude_carrier | 6 |
VESSELS AND EQUIPMENT, NET (Details) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2021
USD ($)
vessels
large_range_2Tanker_vessel_type
|
Dec. 31, 2020
USD ($)
|
|
Movement in Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment [Roll Forward] | ||
Number of newbuild vessels delivered | large_range_2Tanker_vessel_type | 2 | |
Number of vessels with EGCs installed during the period | vessels | 1 | |
Owned vessels | ||
Movement in Property, Plant and Equipment [Roll Forward] | ||
Vessels and equipment, gross, beginning balance | $ 3,867,871 | |
Additions to vessels and equipment | 4,611 | |
Transfers from Newbuildings | 96,683 | |
Vessels and equipment, gross, ending balance | 3,969,165 | |
Movement in Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment [Roll Forward] | ||
Accumulated depreciation, beginning balance | (560,727) | |
Depreciation | (67,451) | |
Accumulated depreciation, ending balance | (628,178) | |
Vessels and equipment, net | $ 3,340,987 | $ 3,307,144 |
VESSELS AND EQUIPMENT UNDER FINANCE LEASE, NET - Narrative (Details) - vessels |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2021 |
Dec. 31, 2020 |
|
Leases [Abstract] | ||
Finance lease, number of leased assets | 2 | 2 |
Finance lease, remaining lease term | 6 years | 6 years |
Weighted average discount rate (percent) | 7.50% |
VESSELS AND EQUIPMENT UNDER FINANCE LEASE, NET - Finance Lease Assets (Details) - USD ($) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Dec. 31, 2020 |
|
Cost | |||
Balance at December 31, 2020 | $ 103,888 | ||
Balance at June 30, 2021 | 103,888 | ||
Accumulated Depreciation | |||
Balance at December 31, 2020 | (50,370) | ||
Depreciation | (4,283) | $ (7,282) | |
Balance at June 30, 2021 | (54,653) | ||
Net Carrying Value | $ 49,235 | $ 53,518 |
VESSELS AND EQUIPMENT UNDER FINANCE LEASE, NET - Maturities of Finance Leases (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Leases [Abstract] | ||
Year 1 | $ 10,946 | |
Year 2 | 11,705 | |
Year 3 | 11,737 | |
Year 4 | 10,946 | |
Year 5 | 11,706 | |
Thereafter | 7,512 | |
Minimum lease payments | 64,552 | $ 70,386 |
Less: imputed interest | (12,108) | (14,109) |
Present value of obligations under finance leases | $ 52,444 | $ 56,277 |
VESSELS AND EQUIPMENT UNDER FINANCE LEASE, NET - Maturities of Finance Leases For Previous Year (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Leases [Abstract] | ||
2021 | $ 11,705 | |
2022 | 10,946 | |
2023 | 11,705 | |
2024 | 10,978 | |
2025 | 11,705 | |
Thereafter | 13,347 | |
Minimum lease payments | $ 64,552 | 70,386 |
Less: imputed interest | (12,108) | (14,109) |
Present value of obligations under finance leases | $ 52,444 | $ 56,277 |
VESSELS AND EQUIPMENT UNDER FINANCE LEASE, NET - Lease Cost (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Leases [Abstract] | ||
Depreciation of vessels under finance leases | $ (4,283) | $ (7,282) |
Interest expense on obligations under finance leases | (2,002) | (4,833) |
Contingent rental income (expense) | 1,624 | (8,270) |
Gain on termination of vessel lease | 0 | 7,409 |
Total finance lease expense, net | $ (4,661) | $ (12,976) |
OPERATING LEASES - Narrative (Details) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2021
USD ($)
very_large_crude_carrier
|
Jun. 30, 2020
USD ($)
|
|
Lessee, Lease, Description [Line Items] | ||
Number of redelivered vessels | very_large_crude_carrier | 2 | |
Lease expense | $ 4,661 | $ 12,976 |
Payments for operating leases | $ 3,500 | $ 5,700 |
Operating lease, weighted average discount rate | 3.30% | 3.80% |
Operating lease, weighted average remaining lease term | 4 years | 3 years |
Property Subject to Operating Lease | ||
Lessee, Lease, Description [Line Items] | ||
Lease expense | $ 3,500 | $ 5,800 |
Ship operating expense | ||
Lessee, Lease, Description [Line Items] | ||
Lease expense | 1,700 | 3,300 |
Charter hire expense | ||
Lessee, Lease, Description [Line Items] | ||
Lease expense | 2,600 | 4,500 |
Administrative expense | ||
Lessee, Lease, Description [Line Items] | ||
Lease expense | $ 900 | $ 1,200 |
OPERATING LEASES - Maturities of Operating Leases (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Leases [Abstract] | ||
Year 1 | $ 1,260 | |
Year 2 | 1,156 | |
Year 3 | 1,094 | |
Year 4 | 1,123 | |
Year 5 | 568 | |
Thereafter | 0 | |
Total minimum lease payments | 5,201 | $ 9,209 |
Less: Imputed interest | (366) | (484) |
Present value of operating lease liabilities | $ 4,835 | $ 8,725 |
OPERATING LEASES - Maturities of Operating Leases For Previous Year (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Leases [Abstract] | ||
2021 | $ 4,705 | |
2022 | 1,182 | |
2023 | 1,078 | |
2024 | 1,107 | |
2025 | 1,137 | |
Thereafter | 0 | |
Total minimum lease payments | $ 5,201 | 9,209 |
Less: Imputed interest | (366) | (484) |
Present value of operating lease liabilities | $ 4,835 | $ 8,725 |
OPERATING LEASES - Rental Income To Be Collected (Details) $ in Thousands |
Jun. 30, 2021
USD ($)
|
---|---|
Leases [Abstract] | |
Year 1 | $ 26,128 |
Year 2 | 28,968 |
Year 3 | 0 |
Year 4 | 0 |
Year 5 | 0 |
Thereafter | 0 |
Total minimum lease payments | $ 55,096 |
SHARE CAPITAL (Details) - USD ($) |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
SHARE CAPITAL [Abstract] | ||
Common stock, value authorized | $ 500,000,000 | |
Common stock, shares authorized (in shares) | 500,000,000 | |
Ordinary shares par value (in dollars per share) | $ 1.00 | $ 1.00 |
Common stock, shares issued (in shares) | 197,692,321 | 197,692,321 |
FINANCIAL INSTRUMENTS - Carrying value and fair value (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Liabilities: | ||
Derivative instruments payable | $ 10,000 | $ 19,300 |
Reported Value Measurement | ||
Assets: | ||
Cash and cash equivalents | 140,361 | 174,721 |
Restricted cash | 1,140 | 14,928 |
Marketable securities | 2,673 | 2,639 |
Derivative instruments receivable | 4,557 | 0 |
Liabilities: | ||
Floating rate debt | 2,075,867 | 2,089,930 |
Fixed rate debt | 161,700 | 66,251 |
Derivative instruments payable | 9,972 | 19,261 |
Reported Value Measurement | Collateral Pledged | ||
Assets: | ||
Marketable securities | 0 | 5,835 |
Estimate of Fair Value Measurement | ||
Assets: | ||
Cash and cash equivalents | 140,361 | 174,721 |
Restricted cash | 1,140 | 14,928 |
Marketable securities | 2,673 | 2,639 |
Derivative instruments receivable | 4,557 | 0 |
Liabilities: | ||
Floating rate debt | 2,075,867 | 2,089,930 |
Fixed rate debt | 160,141 | 65,348 |
Derivative instruments payable | 9,972 | 19,261 |
Estimate of Fair Value Measurement | Collateral Pledged | ||
Assets: | ||
Marketable securities | $ 0 | $ 5,835 |
RELATED PARTY TRANSACTIONS - Leasing transactions (Details) - USD ($) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Dec. 31, 2020 |
|
Related Party Transaction [Line Items] | |||
Present value of obligations under finance leases | $ 52,444 | $ 56,277 | |
SFL | |||
Related Party Transaction [Line Items] | |||
Charter hire payable (principal and interest) | 3,942 | $ 4,360 | |
Lease interest expense | 2,002 | 2,455 | |
Contingent rental (income) expense | (1,624) | 8,270 | |
Present value of obligations under finance leases | $ 52,444 | $ 59,974 |
RELATED PARTY TRANSACTIONS - Due to related parties (Details) - USD ($) $ in Thousands |
Jun. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Related Party Transaction [Line Items] | ||
Related party payables | $ 29,259 | $ 19,853 |
SFL | ||
Related Party Transaction [Line Items] | ||
Related party payables | 5,857 | 8,978 |
Seatankers Management Co. Ltd | ||
Related Party Transaction [Line Items] | ||
Related party payables | 5,573 | 3,147 |
Avance Gas | ||
Related Party Transaction [Line Items] | ||
Related party payables | 723 | 176 |
Flex LNG Ltd | ||
Related Party Transaction [Line Items] | ||
Related party payables | 491 | 143 |
Golden Ocean | ||
Related Party Transaction [Line Items] | ||
Related party payables | 2,594 | 2,040 |
TFG Marine | ||
Related Party Transaction [Line Items] | ||
Related party payables | $ 14,021 | $ 5,369 |
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