Document And Entity Information
Document And Entity Information | 6 Months Ended |
Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | FRONTLINE LTD / |
Entity Central Index Key | 913,290 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q2 |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2016 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating revenues | ||
Time charter revenues | $ 136,320 | $ 51,425 |
Voyage charter revenues | 268,265 | 143,793 |
Finance lease interest income | 1,154 | 0 |
Other income | 13,120 | 2,237 |
Total operating revenues | 418,859 | 197,455 |
Gain on cancellation and sale of newbuilding contracts | 0 | 63,735 |
Voyages expenses and commissions | 67,514 | 51,963 |
Contingent rental income | (2,654) | 0 |
Ship operating expenses | 61,945 | 28,673 |
Charter hire expense | 34,552 | 17,076 |
Impairment loss on vessels | 25,480 | 0 |
Administrative expenses | 18,887 | 2,786 |
Depreciation | 73,321 | 18,980 |
Total operating expenses | 279,045 | 119,478 |
Net operating income | 139,814 | 141,712 |
Other income (expenses) | ||
Interest income | 183 | 8 |
Interest expenses | (27,773) | (6,023) |
Share of results from associated company | 0 | 2,727 |
Foreign currency exchange gain (loss) | 183 | (57) |
Impairment loss on securities | 6,914 | 1,138 |
Mark to market loss on derivatives | (12,260) | (2,258) |
Other non-operating items | 311 | (72) |
Net other expenses | (46,270) | (6,813) |
Net income before income taxes and non-controlling interest | 93,544 | 134,899 |
Income tax expense | (104) | 0 |
Net income from continuing operations | 93,440 | 134,899 |
Net loss from discontinued operations | 0 | (131,006) |
Net income | 93,440 | 3,893 |
Net (income) loss attributable to non-controlling interest | (222) | 30,305 |
Net income attributable to the Company | $ 93,218 | $ 34,198 |
Basic and diluted earnings per share attributable to the Company from continuing operations ($ per share) | $ 0.60 | $ 1.15 |
Basic and diluted loss per share attributable to the Company from discontinued operations ($ per share) | 0 | (0.86) |
Basic and diluted loss per share attributable to Frontline Ltd. ($ per share) | 0.60 | 0.29 |
Cash dividends per share declared, as restated for reverse business acquisition and reverse share split ($ per share) | $ 0.75 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
COMPREHENSIVE (LOSS) INCOME, NET OF TAX | ||
Net income | $ 93,440 | $ 3,893 |
Unrealized loss from marketable securities | (7,194) | (1,647) |
Unrealized loss from marketable securities reclassified to statement of operations | 6,914 | 1,138 |
Foreign currency translation loss | (369) | |
Other comprehensive loss | (649) | (509) |
Comprehensive income (loss) attributable to non-controlling interest | 92,569 | 33,689 |
Comprehensive income | 92,791 | 3,384 |
Comprehensive income attributable to the Company | $ 222 | $ (30,305) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 129,617 | $ 264,524 |
Restricted cash | 5,505 | 368 |
Marketable securities | 6,659 | 13,853 |
Trade accounts receivable, net | 52,467 | 57,367 |
Related party receivables | 10,386 | 10,234 |
Other receivables | 22,794 | 29,121 |
Inventories | 29,205 | 25,779 |
Voyages in progress | 24,918 | 52,167 |
Prepaid expenses and accrued income | 10,137 | 4,315 |
Investment in finance lease | 9,520 | 9,329 |
Other Assets, Current | 38 | 408 |
Total current assets | 301,246 | 467,465 |
Long term assets | ||
Newbuildings | 326,200 | 266,233 |
Vessels and equipment, net | 1,249,027 | 1,189,198 |
Vessels and equipment under capital lease, net | 639,655 | 694,226 |
Investment in finance lease | 35,887 | 40,656 |
Goodwill | 225,273 | 225,273 |
Assets Held-for-sale, Not Part of Disposal Group, Current | 170,775 | 0 |
Other long term assets | 0 | 417 |
Total assets | 2,948,063 | 2,883,468 |
Current liabilities | ||
Short-term debt and current portion of long-term debt | 65,966 | 57,575 |
Current portion of obligations under capital leases | 90,336 | 89,798 |
Related party payables | 20,220 | 28,720 |
Trade accounts payable | 7,061 | 9,500 |
Accrued expenses | 23,796 | 29,689 |
Unfavourable time charter contracts | 738 | 6,799 |
Derivative Instruments and Hedges, Liabilities | 12,880 | 4,081 |
Other current liabilities | 11,834 | 15,875 |
Total current liabilities | 232,831 | 242,037 |
Long-term debt | 896,406 | 745,695 |
Obligations under capital leases | 394,492 | 446,553 |
Other long-term liabilities | 2,961 | 2,840 |
Total liabilities | 1,526,690 | 1,437,125 |
Equity | ||
Share capital (156,386,506 shares, par value $1.00 (December 31, 2015; 781,937,649 shares, par value $1.00)) | 156,387 | 781,938 |
Additional paid in capital | 109,369 | 109,386 |
Contributed surplus | 1,099,680 | 474,129 |
Accumulated other comprehensive loss | (1,032) | (383) |
Retained earnings | 57,083 | 81,212 |
Total equity attributable to the Company | 1,421,487 | 1,446,282 |
Non-controlling interest | (114) | 61 |
Total equity | 1,421,373 | 1,446,343 |
Total liabilities and equity | $ 2,948,063 | $ 2,883,468 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2016 | Feb. 02, 2016 | Dec. 31, 2015 |
Equity | |||
Share capital, shares outstanding (in shares) | 198,375,854 | 112,342,989 | |
Ordinary shares issued (in dollars per share) | $ 1 | $ 1 | $ 1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Net cash provided by operating activities | $ 203,814 | $ 88,099 |
Investing activities | ||
Change in restricted cash | (5,137) | 21,100 |
Additions to newbuildings, vessels and equipment | (337,952) | (468,624) |
Refund of newbuilding installments and interest | 0 | 32,334 |
Finance lease payments received | 4,579 | 0 |
Proceeds from sale of vessels and equipment | 0 | 225,802 |
Cash Provided by (Used in) Investing Activities, Discontinued Operations | 0 | (305,154) |
Net cash used in investing activities | (338,510) | (494,542) |
Financing activities | ||
Proceeds from issuance of long term debt | 192,363 | 159,600 |
Repayment of long-term debt | (29,612) | (23,885) |
Repayment of capital leases | (40,997) | 0 |
Payments of Financing Costs | (4,204) | 0 |
Dividends paid | (117,744) | (14) |
Payment of fractional shares | (17) | 0 |
Cash Provided by (Used in) Financing Activities, Discontinued Operations | 0 | 141,775 |
Net cash (used in) provided by financing activities | (211) | 277,476 |
Net change in cash and cash equivalents | (134,907) | (128,967) |
Cash and cash equivalents at start of period | 264,524 | 235,801 |
Cash and cash equivalents at end of period | 129,617 | 167,978 |
Cash and cash equivalents held for distribution | $ 0 | $ 61,144 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Share Capital [Member] | Treasury Stock, Common [Member] | Additional Paid In Capital [Member] | Contributed Surplus [Member] | Accumulated Other Comprehensive Loss [Member] | Retained (Deficit) Earnings [Member] | Total Equity Attributable to Frontline Ltd. [Member] | Noncontrolling Interest [Member] |
Start Balance (in shares) at Dec. 31, 2014 | 635,205,000 | ||||||||
Start Balance at Dec. 31, 2014 | $ 635,205 | $ 382,373 | $ 0 | $ 0 | $ 156,399 | $ 323,770 | |||
Increase (decrease) in Equity [Roll Forward] | |||||||||
Effect of reverse share split (in shares) | 0 | ||||||||
Effect of reverse share split | $ 0 | 0 | |||||||
Gain attributable to change in non-controlling ownership | 27,485 | (27,485) | |||||||
Other comprehensive loss | $ (509) | (509) | |||||||
Net income | 3,893 | 34,198 | (30,305) | ||||||
Cash dividend | (14) | ||||||||
Stock dividend | (187,784) | (190,583) | |||||||
Payment of fractional shares | 0 | 0 | |||||||
Dividend paid to non-controlling interest | 0 | ||||||||
Impact of de-consolidation | 265,980 | ||||||||
Ending Balance (in shares) at Jun. 30, 2015 | 635,205,000 | ||||||||
Ending Balance at Jun. 30, 2015 | $ 806,373 | $ 635,205 | 222,074 | 0 | (509) | 0 | $ 806,373 | 0 | |
Start Balance (in shares) at Dec. 31, 2015 | 112,342,989 | 781,937,649 | |||||||
Start Balance at Dec. 31, 2015 | $ 1,446,343 | $ 781,938 | $ (50,397) | 109,386 | 474,129 | (383) | 81,212 | 61 | |
Increase (decrease) in Equity [Roll Forward] | |||||||||
Effect of reverse share split (in shares) | (625,551,143) | ||||||||
Effect of reverse share split | $ (625,551) | 625,551 | |||||||
Gain attributable to change in non-controlling ownership | 0 | 0 | |||||||
Other comprehensive loss | (649) | (649) | |||||||
Net income | 93,440 | 93,218 | 222 | ||||||
Cash dividend | (117,347) | ||||||||
Stock dividend | 0 | 0 | |||||||
Payment of fractional shares | $ (17) | (17) | |||||||
Dividend paid to non-controlling interest | (397) | ||||||||
Impact of de-consolidation | 0 | ||||||||
Ending Balance (in shares) at Jun. 30, 2016 | 198,375,854 | 156,386,506 | |||||||
Ending Balance at Jun. 30, 2016 | $ 1,421,373 | $ 156,387 | $ 0 | $ 109,369 | $ 1,099,680 | $ (1,032) | $ 57,083 | $ 1,421,487 | $ (114) |
INTERIM FINANCIAL DATA
INTERIM FINANCIAL DATA | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
INTERIM FINANCIAL DATA | INTERIM FINANCIAL DATA On July 1, 2015, the Company, Frontline Acquisition Ltd, or Frontline Acquisition, a newly formed and wholly-owned subsidiary of the Company, and Frontline 2012 Ltd, or Frontline 2012, entered into an agreement and plan of merger pursuant to which Frontline Acquisition and Frontline 2012 agreed to enter into a merger transaction, or the Merger, with Frontline 2012 as the surviving legal entity and thus becoming a wholly-owned subsidiary of the Company. For accounting purposes, the merger with Frontline 2012 has been treated as a reverse business acquisition. Because this transaction is accounted for as a reverse business acquisition, the financial statements included in this Form 6-K for the period through November 30, 2015 are those of Frontline 2012. The financial statements reflect the reverse business acquisition of the Company by Frontline 2012 for the period since November 30, 2015. The unaudited condensed interim financial statements of Frontline Ltd. (“Frontline” or the “Company”) have been prepared on the same basis as the Company’s audited financial statements 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 interim financial statements should be read in conjunction with the annual financial statements and notes included in the Annual Report on Form 20-F for the year ended December 31, 2015 , filed with the Securities and Exchange Commission on March 21, 2016. The unaudited condensed interim financial statements do not include all the disclosures required by US GAAP. The results of operations for the interim period ended June 30, 2016 are not necessarily indicative of the results for the year ending December 31, 2016. |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
ACCOUNTING POLICIES | ACCOUNTING POLICIES Basis of accounting The condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States. The condensed consolidated financial statements include the assets and liabilities of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated on consolidation. |
RECENT ACCOUNTING PRONOUNCMENTS
RECENT ACCOUNTING PRONOUNCMENTS | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCMENTS | RECENT ACCOUNT PRONOUNCEMENTS Recently Adopted Accounting Standards The condensed consolidated 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, 2015, except for the retrospective implementation of the changes relating to the presentation of deferred charges as outlined in Accounting Standards Update 2015-03. The Company has recorded debt issuance costs (i.e. deferred charges) of $7.2 million at June 30, 2016 (December 31, 2015: $3.2 million ) as a direct deduction from the carrying amount of the related debt rather than as an asset following its adoption of Accounting Standards Update 2015-03 and has applied this on a retrospective basis to December 31, 2015. In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments . The amendments in this update require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The guidance further requires that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date and present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The Company adopted this ASU effective January 1, 2016 with prospective application. The adoption of this ASU did not impact the Company’s consolidated financial statements and related disclosures. Recently Issued Accounting Standards In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , which provides new authoritative guidance on the methods of revenue recognition and related disclosure requirements. This new standard supersedes all existing revenue recognition requirements, including most industry-specific guidance. The new standard requires a company to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. The new standard also requires additional qualitative and quantitative disclosures. In April 2015 the FASB proposed to defer the effective date of the guidance by one year. Based on this proposal, public entities would need to apply the new guidance for annual and interim periods beginning after December 15, 2017, and shall be applied, at the Company’s option, retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. Early adoption is not permitted until periods beginning after December 15, 2016. The Company is in the process of evaluating the impact of this standard update on its consolidated financial statements and related disclosures. In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern , which provides new authoritative guidance with regards to management's responsibility to assess an entity's ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. The ASU will be effective for all entities in the first annual period ending after December 15, 2016 (December 31, 2016 for calendar year-end entities) and early adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements and related disclosures. In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which made targeted improvements to the recognition and measurement of financial assets and financial liabilities. The update changes how entities measure equity investments that do not result in consolidation and are not accounted for under the equity method and how they present changes in the fair value of financial liabilities measured under the fair value option that are attributable to their own credit. The new guidance also changes certain disclosure requirements and other aspects of current US GAAP. The guidance will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years and early adoption is permitted in some cases. The Company is in the process of evaluating the impact of this standard update on its consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The update requires an entity to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. It also offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. The guidance will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years and early adoption is permitted. The Company is in the process of evaluating the impact of this standard update on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-07, Investments-Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting. The update eliminates the requirement that an investor retrospectively apply equity method accounting when an investment that it had accounted for by another method initially qualifies for use of the equity method. The guidance will be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years and early adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). The update clarifies principal vs agent accounting of the new revenue standard. The guidance will be effective for annual and interim periods beginning after December 15, 2017, and shall be applied, at the Company’s option, retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. Early adoption is not permitted until periods beginning after December 15, 2016. The Company is in the process of evaluating the impact of this standard update on its consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The update simplifies the accounting for share based payment transactions. The guidance will be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years and early adoption is permitted. The Company is in the process of evaluating the impact of this standard update on its consolidated financial statements and related disclosures. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. The update provides more clarification about identifying performance obligations and licensing. The guidance will be effective for annual and interim periods beginning after December 15, 2017, and shall be applied, at the Company’s option, retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. Early adoption is not permitted until periods beginning after December 15, 2016. The Company is in the process of evaluating the impact of this standard update on its consolidated financial statements and related disclosures. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606):Narrow-Scope Improvements and Practical Expedients . The update provide some further guidance on assessing the collectability criteria, presentation of sales tax and other similar taxes collected from customers, non-cash considerations and certain other matters related to transition and technical corrections. The guidance will be effective for annual and interim periods beginning after December 15, 2017, and shall be applied, at the Company’s option, retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. Early adoption is not permitted until periods beginning after December 15, 2016. The Company is in the process of evaluating the impact of this standard update on its consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which revises guidance for the accounting for credit losses on financial instruments within its scope. The new standard introduces an approach, based on expected losses, to estimate credit losses on certain types of financial instruments and modifies the impairment model for available-for-sale debt securities. The guidance will be effective January 1, 2020, with early adoption permitted. Entities are required to apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company is in the process of evaluating the impact of this standard update on its consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU No. 2016-15, Statement of cash flows (Topic 230): Classification of certain cash receipts and cash payments . This ASU addresses the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (COLIs) (including bank-owned life insurance policies (BOLIs)); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. The amendments in this Update are effective for the Company for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The amendments in this Update should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company is in the process of evaluating the impact of this standard update on its consolidated financial statements and related disclosures. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2016 | |
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: (in thousands of $) 2016 2015 Net income from continuing operations after non-controlling interest 93,218 134,899 Net loss from discontinued operations after non-controlling interest — (100,701 ) Net income attributable to the Company 93,218 34,198 2016 2015 Weighted average number of shares (000s) 156,387 116,712 The weighted average number of shares outstanding for the six months ended June 30, 2015 has been restated for the reverse business acquisition of the Company by Frontline 2012 on November 30, 2015 and the 1-for-5 reverse share split that was effected in February 2016. The options issued by the Company did not have an impact on the calculation of earnings per share. |
GAIN_LOSS ON SALE OF VESSEL
GAIN/LOSS ON SALE OF VESSEL | 6 Months Ended |
Jun. 30, 2016 | |
GAIN ON SALE OF ASSETS AND AMORTIZATION OF DEFERRED GAINS [Abstract] | |
LOSS ON SALE OF VESSEL | . GAIN ON CANCELLATION AND SALE OF NEWBUILDING CONTRACTS (in thousands of $) 2016 2015 Gain on cancellation of newbuilding contracts; - hull D2174 — 1,735 - hull J0106 — 23,222 Gain on sale of newbuilding contracts; - hull H1071 — 9,212 - hull H1072 — 9,978 - hull H1073 — 9,680 - hull H1074 — 9,908 — 63,735 In January 2015, the first two VLGC newbuildings, hull H1071 (Front Mistral) and hull H1072 (Front Monsoon), of the eight agreed to be sold were delivered to AGHL and Frontline 2012 recorded a gain on sale of $19.2 million . In January 2015, Frontline 2012 recorded a gain of $1.7 million following the receipt of $7.6 million in connection with the cancellation of hull D-2174. In April and June 2015, the third and fourth of the eight VLGC newbuildings agreed to be sold to AGHL, hull H1073 (Front Breeze) and hull H1074 (Front Passat), were delivered to AGHL and Frontline 2012 recorded gains on sale of $9.7 million and $9.9 million , respectively. In June 2015, Frontline 2012 recorded a gain of $23.2 million following the receipt of $24.7 million in connection with the cancellation of hull J0106. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 6 Months Ended |
Jun. 30, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
DISCONTINUED OPERATIONS | 6. DISCONTINUED OPERATIONS Amounts recorded in respect of discontinued operations in the six months ended June 30, 2015 , relate to the results of Golden Ocean Group Limited, or Golden Ocean, and may be summarized as follows; (in thousands of $) 2015 Operating revenues 18,083 Voyage expenses and commissions (13,414 ) Ship operating costs (7,050 ) Administrative expenses (985 ) Depreciation (7,712 ) Vessel impairment loss (62,489 ) Interest expense (2,119 ) Share of results from associated companies (14,880 ) Impairment loss on marketable securities (40,556 ) Gain on non-controlling interest 192 Other financial items (76 ) Net loss from discontinued operations (131,006 ) Net loss attributable to non-controlling interest (30,305 ) Net loss from discontinued operations after non-controlling interest (100,701 ) The vessel impairment loss in the six months ended June 30, 2015 relates to five vessels ( KSL China, Battersea, Belgravia, Golden Future and Golden Zhejiang) , which Golden Ocean agreed to sell to, and lease back, from Ship Finance. Impairment losses are taken when events or changes in circumstances occur such that future cash flows for an individual vessel will be less than its carrying value and not fully recoverable. In such instances an impairment charge is recognized if the estimate of the undiscounted cash flows expected to result from the use of the vessel and its eventual disposition is less than the vessel's carrying amount. |
RESTRICTED CASH (Notes)
RESTRICTED CASH (Notes) | 6 Months Ended |
Jun. 30, 2016 | |
Restricted Cash and Cash Equivalents Items [Line Items] | |
Cash and Cash Equivalents Disclosure [Text Block] | 7. RESTRICTED CASH Restricted cash at June 30, 2016 includes $5.2 million (2015: nil ) in respect of margin calls on interest rate swap agreements. Restricted cash does not include cash balances of $48.5 million (2015: $40.3 million ), which are required to be maintained by the financial covenants in our loan facilities, or cash balances of $28.0 million (2015: $28.0 million ), which are required to be maintained by our vessel leasing agreements with Ship Finance, as these amounts are included in "Cash and cash equivalents". |
MARKETABLE SECURITIES MARKETABL
MARKETABLE SECURITIES MARKETABLE SECURITIES | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | 8. MARKETABLE SECURITIES (in thousands of $) 2016 2015 Balance at start of period 13,853 — Shares acquired as a result of stock dividends — 10,632 Shares acquired on merger with Frontline 2012 — 12,803 Impairment loss (6,914 ) (9,369 ) Unrealized loss recorded in other comprehensive income (280 ) (213 ) 6,659 13,853 The impairment loss and the unrealized loss recorded in other comprehensive income in the 2015 column in the table above are both for the year ended December 31, 2015 and so do not agree to the Statement of Operations and the Statement of Comprehensive Income, respectively. An impairment loss of $2.4 million was recorded in the three months ended March 31, 2016, in respect of the mark to market loss on the Golden Ocean shares that was determined to be other than temporary in view of the significant fall in rates in the Baltic Dry Index and the short to medium term prospects for the dry bulk sector. A mark to market loss of $0.3 million in the three months ended June 30, 2016 was recorded in other comprehensive income as it was deemed to be temporary. An impairment loss of $4.6 million was recorded in the six months ended June 30, 2016, in respect of the mark to market loss on the Avance Gas shares in six months ended June 30, 2016 that was determined to be other than temporary in view of the significant fall in rates and the short to medium term prospects for the LPG sector. |
NEWBUILDINGS
NEWBUILDINGS | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
NEWBUILDINGS | NEWBUILDINGS Movements in the six months ended June 30, 2016 may be summarized as follows; (in thousands of $) Balance at December 31, 2015 266,233 Additions, net 333,740 Interest capitalized 3,358 Transfer to Vessels and Equipment, net (277,131 ) Balance at June 30, 2016 326,200 In the first quarter of 2016, the Company took delivery of four LR2 tanker newbuildings, Front Ocelot, Front Cheetah, Front Cougar and Front Lynx . The Company took delivery of the LR2 tanker newbuildings, Front Leopard and Front Jaguar , in May and June 2016, respectively. In June 2016, the Company acquired two VLCC newbuildings under construction at Hyundai Heavy Industries at a purchase price of $84.0 million each. The VLCC newbuilding, Front Duke , was delivered to the Company in September 2016 and the other vessel is expected to be delivered in January 2017. As of June 30, 2016, the Company's newbuilding program comprised eight VLCCs, eight Suezmax tankers and eight LR2 tanker newbuildings. The Company also had options for two VLCC newbuildings, obtained in June 2016, which lapsed in August 2016. |
VESSELS AND EQUIPMENT, NET
VESSELS AND EQUIPMENT, NET | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
VESSELS AND EQUIPMENT, NET | VESSELS AND EQUIPMENT, NET Movements in the six months ended June 30, 2016 may be summarized as follows; (in thousands of $) Cost Accumulated Depreciation Net Carrying Value Balance at December 31, 2015 1,311,544 (122,346 ) 1,189,198 Depreciation — (26,018 ) Purchase of vessels and equipment 131 — Disposal of vessels and equipment (2,428 ) — Impairment loss (36,311 ) 18,099 Transferred to assets held for sale (170,775 ) — Transfers from Newbuildings 277,131 — Balance at June 30, 2016 1,379,292 (130,265 ) 1,249,027 In the first quarter of 2016, the Company took delivery of four LR2 tanker newbuildings, the Front Ocelot , the Front Cheetah , the Front Cougar and the Front Lynx . In May 2016 and June 2016, the Company took delivery of the LR2 tanker newbuildings, Front Leopard and Front Jaguar, respectively. In June 2016, the Company entered into an agreement to sell its six MR tankers for an aggregate price of $172.5 million to an unaffiliated third party. Five of these vessels were delivered by the Company in August and September 2016 and the Company expects the remaining vessel to be delivered in October 2016. The Company recorded an impairment loss in the six months ended June 30, 2016 of $18.2 million in respect of these vessels, which are recorded as held for sale in the balance sheet at June 30, 2016. 12. ASSETS HELD FOR SALE In June 2016, the Company entered into an agreement to sell its six MR tankers for an aggregate price of $172.5 million to an unaffiliated third party. Five of these vessels were delivered by the Company in August and September 2016 and the Company expects the remaining vessel to be delivered in October 2016. The Company recorded an impairment loss in the six months ended June 30, 2016 of $18.2 million in respect of these vessels and has recorded them as held for sale in the balance sheet at June 30, 2016. |
VESSELS UNDER CAPITAL LEASE, NE
VESSELS UNDER CAPITAL LEASE, NET | 6 Months Ended |
Jun. 30, 2016 | |
Leases [Abstract] | |
VESSELS UNDER CAPITAL LEASE, NET | 11. VESSELS UNDER CAPITAL LEASE, NET In May 2016, the Company agreed with Ship Finance to terminate the long term charter for the 1998-built VLCC Front Vanguard . The charter was terminated in July 2016. The Company has agreed a compensation payment to Ship Finance of $0.4 million for the termination of the charter and recorded an impairment loss of $7.3 million in the six months ended June 30, 2016. |
ASSETS HELD FOR SALE
ASSETS HELD FOR SALE | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract] | |
ASSETS HELD FOR SALE | VESSELS AND EQUIPMENT, NET Movements in the six months ended June 30, 2016 may be summarized as follows; (in thousands of $) Cost Accumulated Depreciation Net Carrying Value Balance at December 31, 2015 1,311,544 (122,346 ) 1,189,198 Depreciation — (26,018 ) Purchase of vessels and equipment 131 — Disposal of vessels and equipment (2,428 ) — Impairment loss (36,311 ) 18,099 Transferred to assets held for sale (170,775 ) — Transfers from Newbuildings 277,131 — Balance at June 30, 2016 1,379,292 (130,265 ) 1,249,027 In the first quarter of 2016, the Company took delivery of four LR2 tanker newbuildings, the Front Ocelot , the Front Cheetah , the Front Cougar and the Front Lynx . In May 2016 and June 2016, the Company took delivery of the LR2 tanker newbuildings, Front Leopard and Front Jaguar, respectively. In June 2016, the Company entered into an agreement to sell its six MR tankers for an aggregate price of $172.5 million to an unaffiliated third party. Five of these vessels were delivered by the Company in August and September 2016 and the Company expects the remaining vessel to be delivered in October 2016. The Company recorded an impairment loss in the six months ended June 30, 2016 of $18.2 million in respect of these vessels, which are recorded as held for sale in the balance sheet at June 30, 2016. 12. ASSETS HELD FOR SALE In June 2016, the Company entered into an agreement to sell its six MR tankers for an aggregate price of $172.5 million to an unaffiliated third party. Five of these vessels were delivered by the Company in August and September 2016 and the Company expects the remaining vessel to be delivered in October 2016. The Company recorded an impairment loss in the six months ended June 30, 2016 of $18.2 million in respect of these vessels and has recorded them as held for sale in the balance sheet at June 30, 2016. |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
DEBT | 13. DEBT The Company drew down $192.4 million in the six months ended June 30, 2016 from its $466.5 million term loan facility in connection with the six LR2 tanker newbuildings, which were delivered in that period. In May 2016, the Company obtained commitments for up to $603.4 million of new financing comprising $328.4 million in bank financing for eight newbuilding contracts and a $275.0 million senior unsecured facility from an affiliate of Hemen Holding Limited., the Company's largest shareholder. The $275.0 million senior unsecured facility was signed in June 2016 and the $328.4 million facility was signed in August 2016 (see Note 18). The $275.0 million facility carries an interest rate of 625 basis points. The facility is available to the Company for a period of eighteen months from the first utilization date and is repayable in full on the eighteen month anniversary of the first utilization date. There are no scheduled loan repayments before this date. The facility does not include any financial covenants and will be used to part finance the Company's current newbuilding program, partially finance potential acquisitions of newbuildings or vessels on the water and for general corporate purposes. Assets pledged (in thousands of $) 2016 2015 Vessels and equipment, net, 1,419,195 1,186,230 |
SHARE CAPITAL
SHARE CAPITAL | 6 Months Ended |
Jun. 30, 2016 | |
SHARE CAPITAL [Abstract] | |
SHARE CAPITAL | 14. SHARE CAPITAL As at December 31, 2015, the authorized share capital of the Company was $1,000,000,000 divided into 1,000,000,000 shares of a par value of $1.00 each, of which 781,937,649 shares had been issued and fully paid. A resolution was approved at the Company’s Special Meeting of Shareholders on January 29, 2016 to effect a capital reorganization, with effect from February 3, 2016, for a 1-for-5 reverse stock split of the Company’s ordinary shares and to reduce the Company’s authorized share capital to $500,000,000 divided into 500,000,000 shares of $1.00 par value each, of which 156,386,506 shares of $1.00 par value each are in issue and fully paid or credited as fully paid. Share capital amounts in the balance sheet as of December 31, 2015 have not been restated for the 1-for-5 reverse share split. The Company had an issued share capital at June 30, 2016 of $156,386,506 divided into 156,386,506 ordinary shares (December 31, 2015: $156,386,506 divided into 156,386,506 ordinary shares taking into account the 1-for-5 reverse stock split that was effected in February 2016). |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS Interest rate swap agreements In February 2013, Frontline 2012 entered into six interest rate swaps with Nordea Bank whereby the floating interest rate on an original principal amount of $260 million of the then anticipated debt on 12 MR product tanker newbuildings was switched to fixed rate. Six of these newbuildings were subsequently financed from the $466.5 million term loan facility. 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 Company recorded a mark to market loss on interest swaps of $13.8 million in the six months ended June 30, 2016 ( six months ended June 30, 2015 : loss of $2.3 million ). The interest rate swaps are not designated as hedges and are summarized as at June 30, 2016 as follows: Notional Amount Inception Date Maturity Date Fixed Interest Rate ($000s) 18,200 June 2013 June 2020 1.4025 % 53,965 September 2013 September 2020 1.5035 % 91,173 December 2013 December 2020 1.6015 % 17,492 March 2014 March 2021 1.6998 % 17,835 June 2014 June 2021 1.7995 % 18,178 September 2014 September 2021 1.9070 % 150,000 February 2016 February 2026 2.1970 % 366,843 Bunker Swap Agreements From time to time, the Company may enter into bunker swap agreements to hedge the cost of its fuel costs. In August 2015, the Company entered into four bunker swap agreements whereby the fixed rate on 4,000 metric tons per calendar month was switched to a floating rate. The Company is then exposed to fluctuations in bunker prices, as the cargo contract price is based on an assumed bunker price for the trade. There is no guarantee that the hedge removes all the risk from the bunker exposure, due to possible differences in location and timing of the bunkering between the physical and financial position. The fair value of these swaps at June 30, 2016 was a payable of $0.6 million (2015: nil ). A non-cash mark to market gain of $1.5 million was recorded, net of a realized loss on settlement of $1.9 million , in the six months ended June 30, 2016 ( six months ended June 30, 2015 : nil ). Fair Values The carrying value and estimated fair value of the Company's financial assets and liabilities as of June 30, 2016 and December 31, 2015 are as follows: 2016 2015 (in thousands of $) Carrying Value Fair Value Carrying Value Fair Value Assets: Cash and cash equivalents 129,617 129,617 264,524 264,524 Restricted cash 5,505 5,505 368 368 Liabilities: Floating rate debt 969,205 969,205 806,456 806,456 The estimated fair value of financial assets and liabilities at June 30, 2016 are as follows: (in thousands of $) Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents 129,617 129,617 — — Restricted cash 5,505 5,505 — — Liabilities: Floating rate debt 969,205 — 969,205 — The estimated fair value of financial assets and liabilities at December 31, 2015 are as follows: (in thousands of $) Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents 264,524 264,524 — — Restricted cash 368 368 — — Liabilities: Floating rate debt 806,456 — 806,456 — 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. Assets Measured at Fair Value on a Nonrecurring Basis See Note 4 of the financial statements included in the Company's Annual Report on Form 20-F for the year ended December 31, 2015 for a summary of the estimated fair values of the assets acquired and liabilities assumed on the Merger. 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 interest rate and bunker swap agreements 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, or SEB, HSBC, Royal Bank of Scotland, DnB Nor Bank ASA and Nordea Bank Norge, or Nordea. There is a concentration of credit risk with respect to restricted cash to the extent that substantially all of the amounts are carried with SEB, Nordea and HSBC. However, the Company believes this risk is remote. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2016 | |
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: Ship Finance, Seadrill Limited, Seatankers Management Norge AS, GHL Finance Limited, Golden Ocean Group Limited, Arcadia Petroleum Limited, Deep Sea Supply Plc, Seatankers Management Co. Ltd, Archer Limited and North Atlantic Drilling Ltd. In November 2014, Highlander Tankers AS, or Highlander Tankers, post fixture managers for the Company became a related party as Robert Hvide Macleod the owner and director of Highlander Tankers was appointed the Chief Executive Officer of Frontline Management AS. Frontline 2012 and the Company (and its subsidiaries) were related parties prior to the Merger. In October 2014, VLCC Chartering Ltd, or VLCC Chartering, was set up as a joint venture between the Company and Tankers International LLC, or TI. VLCC Chartering provides chartering services to the combined fleets of the Company and TI. Transactions with the Company Frontline Management (Bermuda) Limited, a wholly owned subsidiary of the Company, was providing all management services to Frontline 2012 up to the date of the Merger and management fees of $1.9 million were incurred in the six months ended June 30, 2015. Newbuilding supervision fees of $2.6 million were charged to Frontline 2012 by the Company in the six months ended June 30, 2015. Technical management fees of $0.9 million were charged to Frontline 2012 by SeaTeam Management Pte. Ltd, a majority owned subsidiary of the Company, in the six months ended June 30, 2015. Highlander Tankers Transactions In January 2015, Frontline 2012 assumed three charter-out contracts and the commercial management of four vessels from Highlander Tankers for a consideration of $1.8 million being the estimated value of the charter-out contracts and commercial management agreements. Avance Gas Transactions In January 2014, Frontline 2012 received $139.2 million from Avance Gas, an equity investee, in connection with the agreed sale of eight VLGC newbuildings to Avance Gas immediately following their delivery to Frontline 2012 from the yard. This receipt was placed in a restricted account to be used for installments to be paid by Frontline 2012, past and future construction supervision costs and it also included a profit element to be transferred to cash and cash equivalents on delivery of each newbuilding. Four vessels were delivered in the six months ended June 30, 2015 and Frontline 2012 recognized a gain on sale of $38.8 million in aggregate. Ship Finance Transactions As of June 30, 2016 , the Company held fourteen vessels under capital leases, all of which are leased from Ship Finance and were acquired upon the Merger. The remaining periods on these leases at June 30, 2016 range from approximately four to eleven years. As the Merger has been accounted for as a reverse business acquisition in which Frontline 2012 is treated as the accounting acquirer, all of the Company's assets and liabilities were recorded at fair value on November 30, 2015 such that estimated profit share over the remaining terms of the leases has been recorded in the balance sheet obligations. Consequently, the Company will only record profit share expense following the Merger when the actual expense is different to that estimated at the date of the Merger. A summary of leasing transactions with Ship Finance in the six months ended June 30, 2016 and June 30, 2015 are as follows; (in thousands of $) 2016 2015 Charter hire paid (principal and interest) 48,405 — Lease interest expense 18,861 — Contingent rental income (2,654 ) — Remaining lease obligation 484,828 — In May 2016, the Company agreed with Ship Finance to terminate the long term charter for the 1998-built VLCC Front Vanguard. The charter with Ship Finance terminated in July 2016. Frontline has agreed a compensation payment to Ship Finance of $0.4 million for the termination of the charter. In January 2014, Frontline 2012 commenced a pooling arrangement with Ship Finance, between two of its Suezmax tankers Front Odin and Front Njor d and two Ship Finance vessels Glorycrown and Everbright . The Company recognized income of $0.5 million in the six months ended June 30, 2016 in relation to this pooling arrangement ( six months ended June 30, 2015: expense of $1.3 million ) In 2013, Frontline 2012 and Ship Finance entered into a joint project between four of Frontline 2012's vessels Front Odin, Front Njord, Front Thor, Front Loki and two Ship Finance vessels Glorycrown and Everbright . All costs in relation to the conversion to be shared on a pro-rata basis. At June 30, 2016 , the Company owes $1.0 million to Ship Finance in respect of this project (December 31, 2015: $1.7 million ). Seatanker Transactions In January 2016, the Company recharged $2.4 million of fit out costs, which had been incurred on a leased office prior to its assignment to Seatankers in December 2015. GHL Finance Transactions In June 2016, the Company signed a $275.0 million senior unsecured facility agreement with GHL Finance Limited, an affiliate of Hemen Holding Limited., the Company's largest shareholder. See Note 13. A summary of net amounts earned from related parties in the six months ended June 30, 2016 and June 30, 2015 are as follows: (in thousands of $) 2016 2015 Seatankers Management Co. Ltd 3,584 — Ship Finance International Limited 1,537 — Golden Ocean Group Limited 7,991 — Seatankers Management Norge AS 553 — Arcadia Petroleum Limited 450 — Seadrill Limited 328 — Archer Limited 64 — Deep Sea Supply Plc 78 — North Atlantic Drilling Ltd 24 — Frontline companies — 2,859 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. Related party balances A summary of balances due from related parties at June 30, 2016 and December 31, 2015 is as follows: (in thousands of $) 2016 2015 Ship Finance International Limited 2,321 3,356 Seatankers Management Co. Ltd 2,727 1,165 Archer Ltd 64 148 VLCC Chartering Limited 79 102 Golden Ocean Group Limited 3,573 4,099 Seadrill Limited 1,281 859 Deep Sea Supply Plc 100 176 Arcadia Petroleum Limited 39 201 North Atlantic Drilling Limited 202 128 10,386 10,234 A summary of balances due to related parties at June 30, 2016 and December 31, 2015 is as follows: (in thousands of $) 2016 2015 Ship Finance International Limited 17,173 23,688 Seatankers Management Co. Ltd 780 569 Seadrill Limited 5 5 Golden Ocean Group Limited 2,262 4,455 Arcadia Petroleum Limited — 3 20,220 28,720 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 17. COMMITMENTS AND CONTINGENCIES The Company insures the legal liability risks for its shipping activities with Assuranceforeningen SKULD and Assuranceforeningen Gard Gjensidig, both mutual protection and indemnity associations. 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, 2016, the Company's newbuilding program comprised eight VLCCs, eight Suezmax tankers and eight LR2 tanker newbuildings. As of June 30, 2016, total installments of $302.7 million had been paid and the remaining installments, excluding the four VLCC newbuildings at STX, amounted to $964.1 million with $344.6 million payable in 2016 and $619.5 million payable in 2017. The Company is a party, as plaintiff or defendant, to several lawsuits in various jurisdictions for 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, individually or in aggregate, on the Company's operations or financial condition. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS In July 2016, the Company entered into a senior secured term loan facility in an amount of up to $109.2 million with ING Bank. The facility matures on June 30, 2021, carries an interest rate of LIBOR plus a margin of 190 basis points and has an amortization profile of 17 years. It will be used to part finance the acquisition made in June 2016 of the two VLCC newbuildings and is available in two equal tranches. The loan agreement contains a loan-to-value clause, which could require the Company to post additional collateral or prepay a portion of the outstanding borrowings should the value of the vessels securing borrowings under the agreement decrease below a required level. In addition, the loan agreement contains certain financial covenants, including the requirement to maintain a certain level of free cash, positive working capital and a value adjusted equity covenant. In July 2016, the Company awarded 1,170,000 share options to members of the Board of Directors and management in accordance with the terms of the Company's Share Option Scheme. The share options will have a five -year term and will vest equally one third over a three -year vesting period. The exercise price is $8.00 and will be adjusted for any distribution of dividends made before the relevant options are exercised. In August 2016, the Company announced a cash dividend of $0.20 per share for the second quarter of 2016. In August 2016, the Company signed a senior secured term loan facility in an amount of up to $328.4 million with China Exim Bank. The facility matures in 2029, carries an interest rate of LIBOR plus a margin in line with the Company's other credit facilities and has an amortization profile of 18 years. It will be used to part finance eight of our newbuildings and will be secured by four Suezmax tankers and four LR2 tankers. The loan agreement contains a loan-to-value clause, which could require the Company to post additional collateral or prepay a portion of the outstanding borrowings should the value of the vessels securing borrowings under the agreement decrease below a required level. In addition, the loan agreement contains certain financial covenants, including the requirement to maintain a certain level of free cash, positive working capital and a value adjusted equity covenant. In August 2016 the Company secured a commitment for a second facility with China Exim Bank in an amount of up to $321.6 million . The facility matures in 2033, carries an interest rate of LIBOR plus a margin in line with Frontline’s other credit facilities and has an amortization profile of 15 years. This facility is insured by SinoSure, subject to their final approval, will be used to part finance eight of our newbuildings and will be secured by four Suezmax tankers and four LR2 tankers. The financing is subject to final documentation. In August 2016, Frontline secured a commitment for a senior secured term loan facility in an amount of up to $110.5 million with Credit Suisse. The facility matures in 2022, carries an interest rate of LIBOR plus a margin of 190 basis points and has an amortization profile of 18 years. The facility will be used to part finance two of our existing VLCC newbuilding contracts or acquisition of two similar VLCCs. The financing is subject to final documentation. In August 2016, the Suezmax newbuilding, Front Challenger , was delivered to the Company. The first five MR tankers, Front Avon, Front Dee, Front Mersey , Front Clyde and Front Esk , of the six the Company agreed to sell in June 2016 were delivered to the buyer in August and September 2016. In September 2016, the VLCC newbuilding, Front Duke , and the Suezmax newbuildings, Front Crown and Front Altair , were delivered to the Company. In October 2016, the Company entered into an agreement with STX to terminate the contracts for four VLCC newbuildings due for delivery in 2017. The contracted price of these vessels was $364.3 million , of which the Company has paid installments of $45.5 million . Following the contract terminations, the Company has been released of any and all obligations relating to the contracts, and has received all installment payments made to STX, less a $0.5 million cancellation fee per vessel. |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of accounting | Basis of accounting The condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States. The condensed consolidated financial statements include the assets and liabilities of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated on consolidation. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Components of the numerator for the calculation of basic and diluted earnings per share | 2016 2015 Weighted average number of shares (000s) 156,387 116,712 The components of the numerator and the denominator in the calculation of basic and diluted earnings per share are as follows: (in thousands of $) 2016 2015 Net income from continuing operations after non-controlling interest 93,218 134,899 Net loss from discontinued operations after non-controlling interest — (100,701 ) Net income attributable to the Company 93,218 34,198 |
GAIN_LOSS ON SALE OF VESSEL Gai
GAIN/LOSS ON SALE OF VESSEL Gain/ (loss) on sale of assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Line Items] | |
(Loss) gain on sale of assets and amortization of deferred gains [Table Text Block] | (in thousands of $) 2016 2015 Gain on cancellation of newbuilding contracts; - hull D2174 — 1,735 - hull J0106 — 23,222 Gain on sale of newbuilding contracts; - hull H1071 — 9,212 - hull H1072 — 9,978 - hull H1073 — 9,680 - hull H1074 — 9,908 — 63,735 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Schedule of amounts recorded in respect of discontinued operations | (in thousands of $) 2015 Operating revenues 18,083 Voyage expenses and commissions (13,414 ) Ship operating costs (7,050 ) Administrative expenses (985 ) Depreciation (7,712 ) Vessel impairment loss (62,489 ) Interest expense (2,119 ) Share of results from associated companies (14,880 ) Impairment loss on marketable securities (40,556 ) Gain on non-controlling interest 192 Other financial items (76 ) Net loss from discontinued operations (131,006 ) Net loss attributable to non-controlling interest (30,305 ) Net loss from discontinued operations after non-controlling interest (100,701 ) |
MARKETABLE SECURITIES MARKETA30
MARKETABLE SECURITIES MARKETABLE SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of marketable securities | (in thousands of $) 2016 2015 Balance at start of period 13,853 — Shares acquired as a result of stock dividends — 10,632 Shares acquired on merger with Frontline 2012 — 12,803 Impairment loss (6,914 ) (9,369 ) Unrealized loss recorded in other comprehensive income (280 ) (213 ) 6,659 13,853 |
NEWBUILDINGS (Tables)
NEWBUILDINGS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Newbuildings [Table Text Block] | (in thousands of $) Balance at December 31, 2015 266,233 Additions, net 333,740 Interest capitalized 3,358 Transfer to Vessels and Equipment, net (277,131 ) Balance at June 30, 2016 326,200 |
VESSELS AND EQUIPMENT, NET VESS
VESSELS AND EQUIPMENT, NET VESSELS & EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment [Table Text Block] | (in thousands of $) Cost Accumulated Depreciation Net Carrying Value Balance at December 31, 2015 1,311,544 (122,346 ) 1,189,198 Depreciation — (26,018 ) Purchase of vessels and equipment 131 — Disposal of vessels and equipment (2,428 ) — Impairment loss (36,311 ) 18,099 Transferred to assets held for sale (170,775 ) — Transfers from Newbuildings 277,131 — Balance at June 30, 2016 1,379,292 (130,265 ) 1,249,027 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of assets pledged | Assets pledged (in thousands of $) 2016 2015 Vessels and equipment, net, 1,419,195 1,186,230 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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 at June 30, 2016 as follows: Notional Amount Inception Date Maturity Date Fixed Interest Rate ($000s) 18,200 June 2013 June 2020 1.4025 % 53,965 September 2013 September 2020 1.5035 % 91,173 December 2013 December 2020 1.6015 % 17,492 March 2014 March 2021 1.6998 % 17,835 June 2014 June 2021 1.7995 % 18,178 September 2014 September 2021 1.9070 % 150,000 February 2016 February 2026 2.1970 % 366,843 |
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, 2016 and December 31, 2015 are as follows: 2016 2015 (in thousands of $) Carrying Value Fair Value Carrying Value Fair Value Assets: Cash and cash equivalents 129,617 129,617 264,524 264,524 Restricted cash 5,505 5,505 368 368 Liabilities: Floating rate debt 969,205 969,205 806,456 806,456 |
Financial assets and liabilities measured at fair value on recurring basis | The estimated fair value of financial assets and liabilities at June 30, 2016 are as follows: (in thousands of $) Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents 129,617 129,617 — — Restricted cash 5,505 5,505 — — Liabilities: Floating rate debt 969,205 — 969,205 — The estimated fair value of financial assets and liabilities at December 31, 2015 are as follows: (in thousands of $) Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents 264,524 264,524 — — Restricted cash 368 368 — — Liabilities: Floating rate debt 806,456 — 806,456 — |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of leasing transactions with related party | A summary of leasing transactions with Ship Finance in the six months ended June 30, 2016 and June 30, 2015 are as follows; (in thousands of $) 2016 2015 Charter hire paid (principal and interest) 48,405 — Lease interest expense 18,861 — Contingent rental income (2,654 ) — Remaining lease obligation 484,828 — |
Schedule of net earnings loss from related party companies | (in thousands of $) 2016 2015 Seatankers Management Co. Ltd 3,584 — Ship Finance International Limited 1,537 — Golden Ocean Group Limited 7,991 — Seatankers Management Norge AS 553 — Arcadia Petroleum Limited 450 — Seadrill Limited 328 — Archer Limited 64 — Deep Sea Supply Plc 78 — North Atlantic Drilling Ltd 24 — Frontline companies — 2,859 |
Schedule of related party receivables and payables | A summary of balances due from related parties at June 30, 2016 and December 31, 2015 is as follows: (in thousands of $) 2016 2015 Ship Finance International Limited 2,321 3,356 Seatankers Management Co. Ltd 2,727 1,165 Archer Ltd 64 148 VLCC Chartering Limited 79 102 Golden Ocean Group Limited 3,573 4,099 Seadrill Limited 1,281 859 Deep Sea Supply Plc 100 176 Arcadia Petroleum Limited 39 201 North Atlantic Drilling Limited 202 128 10,386 10,234 A summary of balances due to related parties at June 30, 2016 and December 31, 2015 is as follows: (in thousands of $) 2016 2015 Ship Finance International Limited 17,173 23,688 Seatankers Management Co. Ltd 780 569 Seadrill Limited 5 5 Golden Ocean Group Limited 2,262 4,455 Arcadia Petroleum Limited — 3 20,220 28,720 |
RECENT ACCOUNTING PRONOUNCMEN36
RECENT ACCOUNTING PRONOUNCMENTS (Details) $ in Millions | Jun. 30, 2016USD ($) |
Accounting Changes and Error Corrections [Abstract] | |
Debt Issuance Costs, Line of Credit Arrangements, Gross | $ 7.2 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) shares in Thousands, $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||
Net income from continuing operations after non-controlling interest | $ 93,218 | $ 134,899 |
Net loss from discontinued operations after non-controlling interest | 0 | (100,701) |
Net income attributable to the Company | $ 93,218 | $ 34,198 |
Weighted average number of ordinary shares (in shares) | 156,387 | 116,712 |
GAIN_LOSS ON SALE OF VESSEL G38
GAIN/LOSS ON SALE OF VESSEL Gain/ (loss) on sale of vessel (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 13 Months Ended | |
Jan. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | |
Property, Plant and Equipment [Line Items] | |||||
gain (loss) on sale of assets and cancellation of contracts | $ 0 | $ 63,735 | |||
HullH1071 & HullH1072 [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Gain (Loss) On Sale Of Assets | $ 19,200 | ||||
HullD2174 [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Gain (Loss) on Contract Termination | 0 | 1,735 | |||
proceeds from cancellation of newbuilding contract | $ 7,600 | ||||
HullJ0106 [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Gain (Loss) on Contract Termination | 0 | 23,222 | 23,222 | ||
proceeds from cancellation of newbuilding contract | 24,700 | ||||
HullH1071 [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Gain (Loss) On Sale Of Assets | 0 | 9,212 | |||
HullH1072 [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Gain (Loss) On Sale Of Assets | 0 | 9,978 | |||
HullH1073 [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Gain (Loss) On Sale Of Assets | $ 9,680 | 0 | 9,680 | ||
HullH1074 [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Gain (Loss) On Sale Of Assets | $ 0 | $ 9,908 | $ 9,908 | ||
Avance Gas [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
number of newbuild contracts sold to related party or third parties | 2 | 8 | |||
Gain (Loss) On Sale Of Assets | $ 38,800 |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | |
Per Statement of Operations: | ||
Net loss | $ 0 | $ (131,006) |
Net loss from discontinued operations | $ 0 | (100,701) |
Discontinued Operations, Disposed of by Sale [Member] | ||
Per Statement of Operations: | ||
Operating revenues | 18,083 | |
Net loss | (131,006) | |
disposal group, including discontinued operation, voyage expenses and commissions | (13,414) | |
Disposal Group, Including Discontinued Operation, Operating Expense | (7,050) | |
Disposal Group, Including Discontinued Operation, Other Expense | (985) | |
Disposal Group, Including Discontinued Operation, Depreciation and Amortization | (7,712) | |
disposal group, including discontinued operation, impairment | (62,489) | |
Disposal Group, Including Discontinued Operation, Interest Expense | (2,119) | |
disposal group, including discontinued operation, share of associates | (14,880) | |
disposal group, including discontinued operation, impairment of marketable securities | (40,556) | |
disposal group, including discontinued operation, gain (loss) on NCI | 192 | |
disposal group, including discontinued operation, other financial item | (76) | |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Noncontrolling Interest | (30,305) | |
Net loss from discontinued operations | $ (100,701) | |
KSL China, Battersea, Belgravia, Golden Future and Golden Zheijang [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of vessels impaired | 5 |
RESTRICTED CASH Restricted Cash
RESTRICTED CASH Restricted Cash (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Margin calls on interest rate swaps | $ 5.2 | $ 0 |
Debt instrument, covenant compliance, cash required to be maintained | 48.5 | 40.3 |
Ship Finance International Limited [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
cash surplus required for vessel leasing agreements, covenant compliance | $ 28 | $ 28 |
MARKETABLE SECURITIES (Details)
MARKETABLE SECURITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Available-for-sale Securities | $ 6,659 | $ 6,659 | $ 13,853 | $ 0 | ||
Available for sale securities, equity securities acquired | 0 | 10,632 | ||||
Other than Temporary Impairment Losses, Investments | (6,914) | $ (1,138) | (9,369) | |||
Unrealized Gain (Loss) on Investments | (280) | (213) | ||||
reverse acquisition [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Available for sale securities, equity securities acquired | 0 | $ 12,803 | ||||
Golden Ocean Group Limited [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Other than Temporary Impairment Losses, Investments | $ (2,400) | |||||
Unrealized Gain (Loss) on Investments | $ (300) | |||||
Avance Gas [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Other than Temporary Impairment Losses, Investments | $ (4,600) |
NEWBUILDINGS (Details)
NEWBUILDINGS (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 13 Months Ended |
Mar. 31, 2016USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2016USD ($) | |
Movement In Construction In Progress [Roll Forward] | |||
Construction in Progress, Gross | $ 266,233 | $ 266,233 | |
Construction in progress, additions | 333,740 | ||
Construction in progress, interest capitalized | 3,358 | ||
Construction in progress, transfer to Vessels and Equipment | (277,131) | ||
Construction in Progress, Gross | $ 326,200 | $ 326,200 | |
VLCC Vessels [Member] | |||
Movement In Construction In Progress [Roll Forward] | |||
Number of newbuildings acquired | 2 | ||
Payments to Acquire Productive Assets | $ 84,000 | ||
Number of Newbuild options | 2 | 2 | |
number of newbuild vessels | 8 | 8 | |
Suezmax [Member] | |||
Movement In Construction In Progress [Roll Forward] | |||
number of newbuild vessels | 8 | 8 | |
LR2 tanker [Member] | |||
Movement In Construction In Progress [Roll Forward] | |||
number of newbuilding vessels delivered | 4 | ||
number of newbuild vessels | 8 | 8 |
VESSELS AND EQUIPMENT, NET (Det
VESSELS AND EQUIPMENT, NET (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2016 | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation | $ (73,321) | $ (18,980) | ||
Assets Held-for-sale, Not Part of Disposal Group | (170,775) | |||
Vessels and Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Gross | 1,379,292 | $ 1,311,544 | ||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (130,265) | (122,346) | ||
Property, Plant and Equipment, Net | 1,249,027 | $ 1,189,198 | ||
Depreciation | (26,018) | |||
Property, Plant and Equipment, Additions | 131 | |||
Property, Plant and Equipment, Disposals | (2,428) | |||
Property, Plant and Equipment, Impairment [Policy Text Block] | (36,311) | |||
Accumulated Depreciation on Tangible Asset Impairment Charges | 18,099 | |||
Property, Plant and Equipment, Transfers and Changes | 277,131 | |||
LR2 tanker [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Number of newbuilding vessels delivered | 4 | |||
MR tanker [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Impairment [Policy Text Block] | $ (18,200) | |||
number of vessels held for sale | 6 | |||
sale price | $ 172,500 |
VESSELS UNDER CAPITAL LEASE, 44
VESSELS UNDER CAPITAL LEASE, NET (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended |
May 31, 2016 | Jun. 30, 2016 | |
Front Vanguard [Member] | Ship Finance International Limited [Member] | ||
Capital Leased Assets [Line Items] | ||
Related party, Lease termination payments (paid)/received | $ 0.4 | |
Impairment of assets under capital lease | $ 7.3 | |
Maximum [Member] | Special Purpose Entities [Member] | ||
Capital Leased Assets [Line Items] | ||
Sale Leaseback Transaction, Lease Term | 12 years 6 months | |
Minimum [Member] | Special Purpose Entities [Member] | ||
Capital Leased Assets [Line Items] | ||
Sale Leaseback Transaction, Lease Term | 8 years |
ASSETS HELD FOR SALE (Details)
ASSETS HELD FOR SALE (Details) - MR tanker [Member] $ in Thousands | 2 Months Ended | 6 Months Ended |
Sep. 30, 2016 | Jun. 30, 2016USD ($) | |
Long Lived Assets Held-for-sale [Line Items] | ||
number of vessels held for sale | 6 | |
sale price | $ 172,500 | |
Impairment charges | $ 18,200 | |
Subsequent Event [Member] | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Number of vessels delivered and sold | 5 |
DEBT (Details)
DEBT (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 13 Months Ended | ||
Aug. 31, 2016USD ($) | Mar. 31, 2016 | Jun. 30, 2016USD ($) | Jun. 30, 2016USD ($) | May 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Assets pledged [Abstract] | ||||||
Restricted cash and investments | $ 5,505 | $ 5,505 | $ 368 | |||
Front Ull and Front Idun [Member] | ||||||
Assets pledged [Abstract] | ||||||
Vessels and equipment, net, | 1,419,195 | 1,419,195 | ||||
Front UII [Member] | ||||||
Assets pledged [Abstract] | ||||||
Vessels and equipment, net, | $ 1,186,230 | |||||
Term loan facility $466.5 million [Member] | US Dollar denominated floating rate debt [Member] | Loans Payable [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Increase (Decrease), Net | 192,400 | |||||
Long-term Debt | $ 466,500 | 466,500 | ||||
number of newbuilding vessels delivered | 6 | |||||
Term loan facility $328.4 million and senior unsecured facility $275.0 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
long term debt, commitments | $ 603,400 | |||||
Term loan facility $328.4 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
long term debt, commitments | $ 328,400 | |||||
Term loan facility $328.4 million [Member] | Loans Payable [Member] | ||||||
Debt Instrument [Line Items] | ||||||
number of newbuild vessels | 8 | |||||
Senior unsecured facility $275.0 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
long term debt, commitments | $ 275,000 | $ 275,000 | $ 275,000 | |||
Debt Instrument, Interest Rate Terms | 625 | |||||
Subsequent Event [Member] | Term loan facility $328.4 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | $ 328,400 | |||||
long term debt, commitments | $ 328,400 | |||||
Debt Instrument, Term | 18 years | |||||
Number of newbuild vessels financed by term loan facility | 0 | |||||
Subsequent Event [Member] | Term loan facility $324.6 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
long term debt, commitments | $ 321,600 | |||||
Debt Instrument, Term | 15 years | |||||
Number of newbuild vessels financed by term loan facility | 8 | |||||
Suezmax [Member] | ||||||
Debt Instrument [Line Items] | ||||||
number of newbuild vessels | 8 | 8 | ||||
Suezmax [Member] | Subsequent Event [Member] | Term loan facility $328.4 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Number of vessels pledged as security on long-term debt instrument | 0 | |||||
Suezmax [Member] | Subsequent Event [Member] | Term loan facility $324.6 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Number of vessels pledged as security on long-term debt instrument | 4 | |||||
LR2 tanker [Member] | ||||||
Debt Instrument [Line Items] | ||||||
number of newbuilding vessels delivered | 4 | |||||
number of newbuild vessels | 8 | 8 | ||||
LR2 tanker [Member] | Subsequent Event [Member] | Term loan facility $328.4 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Number of vessels pledged as security on long-term debt instrument | 0 | |||||
LR2 tanker [Member] | Subsequent Event [Member] | Term loan facility $324.6 million [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Number of vessels pledged as security on long-term debt instrument | 4 |
SHARE CAPITAL (Detail)
SHARE CAPITAL (Detail) - USD ($) | Jun. 30, 2016 | Feb. 02, 2016 | Dec. 31, 2015 |
Authorized Share Capital [Abstract] | |||
Ordinary shares par value (in dollars per share) | $ 1 | $ 1 | $ 1 |
Common Stock Value Authorized | $ 156,386,506 | $ 500,000,000 | $ 1,000,000,000 |
Ordinary shares issued | $ 156,387,000 | $ 781,938,000 | |
Ordinary shares issued (in shares) | 198,375,854 | 112,342,989 | |
Common Stock, Value, Outstanding | $ 156,386,506 | $ 781,937,649 | |
reverse acquisition [Member] | |||
Common Stock, Value, Outstanding | $ 156,386,506 |
FINANCIAL INSTRUMENTS 1 (Detail
FINANCIAL INSTRUMENTS 1 (Details) | 1 Months Ended | 6 Months Ended | ||||
Aug. 31, 2015 | Feb. 27, 2013 | Jun. 30, 2016USD ($)Rate | Jun. 30, 2015USD ($) | Feb. 29, 2016USD ($) | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | ||||||
Derivative, Notional Amount | $ 366,843,000 | |||||
MR tanker [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Number of newbuild vessels financed by term loan facility | 6 | |||||
Term loan facility $466.5 million [Member] | Loans Payable [Member] | US Dollar denominated floating rate debt [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | 466,500,000 | |||||
Bunker swaps [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Derivative Liability, Number of Instruments Held | 4 | |||||
Number of metric tonnes per calendar month | 4,000 | |||||
Fair value of derivatives | 600,000 | $ 0 | ||||
Non-cash mark to market gain | 1,500,000 | |||||
Realized loss on settlement | 1,900,000 | $ 0 | ||||
Interest rate swap 1 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Derivative, Notional Amount | $ 18,200,000 | |||||
Derivative, Fixed Interest Rate | Rate | 1.4025% | |||||
Interest rate swap 2 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Derivative, Notional Amount | $ 53,965,000 | |||||
Derivative, Fixed Interest Rate | Rate | 1.5035% | |||||
Interest rate swap 3 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Derivative, Notional Amount | $ 91,173,000 | |||||
Derivative, Fixed Interest Rate | Rate | 1.6015% | |||||
Interest rate swap 5 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Derivative, Notional Amount | $ 17,835,000 | |||||
Derivative, Fixed Interest Rate | Rate | 1.7995% | |||||
Interest rate swap 4 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Derivative, Notional Amount | $ 17,492,000 | |||||
Derivative, Fixed Interest Rate | Rate | 1.6998% | |||||
Interest rate swap 6 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Derivative, Notional Amount | $ 18,178,000 | |||||
Derivative, Fixed Interest Rate | Rate | 1.907% | |||||
Interest rate swap 7 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Derivative, Notional Amount | $ 150,000,000 | $ 150,000,000 | ||||
Derivative, Fixed Interest Rate | Rate | 2.197% | |||||
Interest Rate Swap [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Non-cash mark to market gain | $ 13,800,000 | $ 2,300,000 |
FINANCIAL INSTRUMENTS 2 (Detail
FINANCIAL INSTRUMENTS 2 (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Assets: | ||
Cash and cash equivalents | $ 129,617,000 | $ 264,524,000 |
Restricted cash | 5,505,000 | 368,000 |
Liabilities: | ||
Floating rate debt | 969,205,000 | 806,456,000 |
Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Assets: | ||
Cash and cash equivalents | 129,617,000 | 264,524,000 |
Restricted cash | 5,505,000 | 368,000 |
Liabilities: | ||
Floating rate debt | 969,205,000 | 806,456,000 |
Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Cash and cash equivalents | 129,617,000 | 264,524,000 |
Restricted cash | 5,505,000 | 368,000 |
Liabilities: | ||
Total US Dollar floating rate and fixed rate debt | 969,205,000 | 806,456 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Cash and cash equivalents | 129,617,000 | 264,524,000 |
Restricted cash | 5,505,000 | 368,000 |
Liabilities: | ||
Total US Dollar floating rate and fixed rate debt | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Liabilities: | ||
Total US Dollar floating rate and fixed rate debt | 969,205,000 | 806,456 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Liabilities: | ||
Total US Dollar floating rate and fixed rate debt | $ 0 | $ 0 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | |||||
May 31, 2016USD ($) | Jan. 31, 2016USD ($) | Jan. 31, 2015USD ($) | Jan. 31, 2014USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Related Party Transaction [Line Items] | |||||||
Receivables with related parties | $ 10,386 | $ 10,234 | |||||
Payables with related parties | 20,220 | 28,720 | |||||
Proceeds From Sale Of Vessels and Equipment | $ 0 | $ 225,802 | |||||
Frontline 2012 [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Management Fee Expense | 1,900 | ||||||
Newbuilding supervision fees | 2,600 | ||||||
Technical management fees | 900 | ||||||
Ship Finance International Limited [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Number of Ship Finance vessels involved in de-rating project | 2 | ||||||
Related Party Transaction, Amounts of Transaction | $ 1,537 | 0 | |||||
Charter hire paid (principal and interest) | 48,405 | 0 | |||||
Contingent rental (income) expense | (2,654) | 0 | |||||
Remaining lease obligation | 484,828 | 0 | |||||
Receivables with related parties | 2,321 | 3,356 | |||||
Payables with related parties | 17,173 | 23,688 | |||||
Interest expense | $ 18,861 | 0 | |||||
Number of vessels under capital lease | 14 | ||||||
Remaining periods on these leases, minimum (in years) | 4 | ||||||
Remaining periods on these leases, maximum (in years) | 11 | ||||||
Income/ expense on pooled vessels | $ 500 | 1,300 | |||||
Number of vessel from Frontline 2012 involved in de-rating project | 4 | ||||||
Amount due/ from related party for vessels within pooling arrangment | $ 1,000 | 1,700 | |||||
Seatankers Management Co. Ltd [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related Party Transaction, Amounts of Transaction | 3,584 | 0 | |||||
Receivables with related parties | 2,727 | 1,165 | |||||
Payables with related parties | 780 | 569 | |||||
Proceeds From Sale Of Vessels and Equipment | $ 2,400 | ||||||
Golden Ocean Group Limited [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related Party Transaction, Amounts of Transaction | 7,991 | 0 | |||||
Receivables with related parties | 3,573 | 4,099 | |||||
Payables with related parties | 2,262 | 4,455 | |||||
Arcadia Petroleum Limited [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related Party Transaction, Amounts of Transaction | 450 | 0 | |||||
Receivables with related parties | 39 | 201 | |||||
Payables with related parties | 0 | 3 | |||||
Seadrill Limited [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related Party Transaction, Amounts of Transaction | 328 | 0 | |||||
Receivables with related parties | 1,281 | 859 | |||||
Payables with related parties | 5 | 5 | |||||
North Atlantic Drilling Limited [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related Party Transaction, Amounts of Transaction | 24 | 0 | |||||
Receivables with related parties | 202 | 128 | |||||
Archer Limited [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related Party Transaction, Amounts of Transaction | 64 | 0 | |||||
Receivables with related parties | 64 | 148 | |||||
Deep Sea Supply Plc [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related Party Transaction, Amounts of Transaction | 78 | 0 | |||||
Receivables with related parties | 100 | 176 | |||||
Seatankers Management Norge AS [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related Party Transaction, Amounts of Transaction | 553 | 0 | |||||
Frontline Companies [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Related Party Transaction, Amounts of Transaction | 0 | 2,859 | |||||
VLCC Chartering Limited [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Receivables with related parties | $ 79 | $ 102 | |||||
Highlander Tankers [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Number of charter-out contracts assumed | 3 | ||||||
Number of vessels who Highlander ceased to act as post fixture manager | 4 | ||||||
Consideration to assume charter-out contracts and commercially managed vessels | $ 1,800 | ||||||
Avance Gas [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Proceeds From Sale Of Vessels and Equipment | $ 139,200 | ||||||
Gain (Loss) On Sale Of Assets | $ 38,800 | ||||||
VLGC [Member] | Avance Gas [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Number of vessels delivered and sold | 8 | 4 | |||||
Suezmax [Member] | Ship Finance International Limited [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
Number of vessels from Frontline 2012 involved in pooling arrangement | 2 | ||||||
Front Vanguard [Member] | Ship Finance International Limited [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
lease termination fees (expense) income | $ 400 | ||||||
Senior unsecured facility $275.0 million [Member] | |||||||
Related Party Transaction [Line Items] | |||||||
long term debt, commitments | $ 275,000 | $ 275,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Other Commitments [Line Items] | |
Installments And Newbuilding Supervision Fees Paid | $ 302.7 |
Newbuilding installment Commitments | 964.1 |
Newbuilding installment Commitments Due in next twelve months | 345 |
Newbuilding installment Commitments Due in Two years | $ 620 |
Number of VLCC newbuildings at STX | 4 |
Special Purpose Entities [Member] | Minimum [Member] | |
Other Commitments [Line Items] | |
Leased back on charters | 8 years |
Special Purpose Entities [Member] | Maximum [Member] | |
Other Commitments [Line Items] | |
Leased back on charters | 12 years 6 months |
VLCC Vessels [Member] | |
Other Commitments [Line Items] | |
number of newbuild vessels | 8 |
Number of Newbuild options | 2 |
Suezmax [Member] | |
Other Commitments [Line Items] | |
number of newbuild vessels | 8 |
LR2 tanker [Member] | |
Other Commitments [Line Items] | |
number of newbuild vessels | 8 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | 1 Months Ended | 2 Months Ended | 6 Months Ended | |||||
Oct. 31, 2016USD ($) | Aug. 31, 2016USD ($)$ / shares | Jul. 31, 2016USD ($)$ / sharesshares | Feb. 27, 2013 | Sep. 30, 2016 | Jun. 30, 2016USD ($)shares | May 31, 2016USD ($) | Dec. 31, 2015shares | |
Subsequent Event [Line Items] | ||||||||
Ordinary shares issued (in shares) | shares | 198,375,854 | 112,342,989 | ||||||
Installments And Newbuilding Supervision Fees Paid | $ 302,700,000 | |||||||
Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Investment Options, Exercise Price | $ / shares | $ 8 | |||||||
Dividends Payable, Amount Per Share | $ / shares | $ 0.20 | |||||||
Number of stock options awarded to employees | shares | 1,170,000 | |||||||
Stock options, term | 5 | |||||||
Stock options, vesting period | 3 | |||||||
Term loan facility $328.4 million [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
long term debt, commitments | $ 328,400,000 | |||||||
Term loan facility $328.4 million [Member] | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Long-term Debt | $ 328,400,000 | |||||||
long term debt, commitments | $ 328,400,000 | |||||||
Debt Instrument, Term | 18 years | |||||||
Number of newbuild vessels financed by term loan facility | 0 | |||||||
Term loan facility $109.2 million [Member] | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Long-term Debt | $ 109,200,000 | |||||||
Debt Instrument, Term | 17 years | |||||||
Number of newbuild vessels financed by term loan facility | 2 | |||||||
Debt instrument, number of tranches | 2 | |||||||
Term loan facility $324.6 million [Member] | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
long term debt, commitments | $ 321,600,000 | |||||||
Debt Instrument, Term | 15 years | |||||||
Number of newbuild vessels financed by term loan facility | 8 | |||||||
Term loan facility $110.5 million [Member] | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
long term debt, commitments | $ 110,500,000 | |||||||
Debt Instrument, Term | 18 years | |||||||
London Interbank Offered Rate (LIBOR) [Member] | Loans Payable [Member] | Term loan facility $109.2 million [Member] | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 19000.00% | |||||||
London Interbank Offered Rate (LIBOR) [Member] | Loans Payable [Member] | Term loan facility $110.5 million [Member] | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 19000.00% | |||||||
Suezmax [Member] | Term loan facility $328.4 million [Member] | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of vessels pledged as security on long-term debt instrument | 0 | |||||||
Suezmax [Member] | Term loan facility $324.6 million [Member] | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of vessels pledged as security on long-term debt instrument | 4 | |||||||
LR2 tanker [Member] | Term loan facility $328.4 million [Member] | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of vessels pledged as security on long-term debt instrument | 0 | |||||||
LR2 tanker [Member] | Term loan facility $324.6 million [Member] | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of vessels pledged as security on long-term debt instrument | 4 | |||||||
VLCC Vessels [Member] | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of newbuilding contracts terminated | 4 | |||||||
Contracted price of newbuildings, gross | $ 364,300,000 | |||||||
Installments And Newbuilding Supervision Fees Paid | 45,500,000 | |||||||
Cancellation fee on termination, per vessel | $ 500,000 | |||||||
VLCC Vessels [Member] | Term loan facility $110.5 million [Member] | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of newbuild vessels financed by term loan facility | 2 | |||||||
MR tanker [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of newbuild vessels financed by term loan facility | 6 | |||||||
number of vessels held for sale | 6 | |||||||
MR tanker [Member] | Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Number of vessels delivered and sold | 5 |