Frontline Q2 Loss Widens

(RTTNews) - Frontline Ltd. (FRO, FRO.L) reported that its second-quarter net loss attributable to the company widened to $120.28 million or $1.54 per basic share, from $24.35 million or $0.31 per basic share last year.

The company has recorded a vessel impairment loss of $81.3 million in the second-quarter of 2013. This loss relates to three vessels leased from Ship Finance (Front Century, Front Champion and Golden Victory). Impairment losses are taken when events or changes in circumstances occur that cause the Company to believe that future cash flows for an individual vessel will be less than its carrying value and not fully recoverable.

The Board expects that the operating result excluding gains and losses in the third quarter will be in line with the operating result in the second quarter and that the free cash position of the Company will continue to decrease.