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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: CusterInvestor who wrote (9095)	5/25/2011 12:37:22 PM
From: Steve Felix	Respond to of 34328

The whole sector has just been melting away. FRO at half off last years price. Frontline Ltd 1Q Net Down 81% On Revenue Decline >FRO 7:10a ET May 25, 2011 (Dow Jones) Frontline Ltd 1Q Net Down 81% On Revenue Decline >FRO DOW JONES NEWSWIRES Frontline Ltd.'s (FRO, FRO.LN) first-quarter profit dropped 81% on a steep decline in revenue amid sluggish tanker demand. Shares were off 6.1% to $17.66 after the shipping company said it expects weak trading results in the first quarter to extend to the second quarter. Frontline has benefited along with its peers from slightly higher spot market prices in recent months, though the shipping sector still suffers from excess capacity. The mandatory scrapping of older, single-hull tankers is expected to help cut supply in the coming months, while demand from rebuilding efforts in Japan following the country's March earthquake disaster should further lift rates. Frontline's profit-sharing agreement with partner Ship Finance International Ltd. (SFL) added $2.3 million to costs, well below the $11.3 million profit-share expense reported last year. Ship Finance on Monday also reported a sharply lower first-quarter profit, partly due to the soft spot market. Frontline posted a first-quarter profit of $15.5 million, or 20 cents a share, compared with a prior-year profit of $79.7 million, or $1.02 a share. Amortization of deferred gains and other adjustments added $21.3 million in net gains to the latest quarter, while the prior-year quarter benefited from $9.8 million in lease-termination gains. Operating revenue dropped 29% to $234.8 million. Analysts polled by Thomson Reuters expected a 16-cent per-share loss and $169 million in revenue. Average daily time-charter equivalents, a key measure of profitability for tanker companies, rose 16% sequentially for the company's very large crude carriers and 4.9% for its Suezmax tankers but fell 20% for its Suezmax oil, bulk and ore carriers.