Cover Page
Cover Page | 6 Months Ended |
Jun. 30, 2020 | |
Cover [Abstract] | |
Document Type | 6-K |
Document Period End Date | Jun. 30, 2020 |
Entity File Number | 001-16601 |
Entity Registrant Name | FRONTLINE LTD / |
Entity Central Index Key | 0000913290 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Operating revenues | ||
Total operating revenues | $ 798,904 | $ 431,683 |
Other operating gains | 24,219 | 969 |
Operating expenses | ||
Voyages expenses and commissions | 209,263 | 188,176 |
Contingent rental expense (income) | 8,270 | (2,555) |
Ship operating expenses | 79,831 | 70,425 |
Charter hire expense | 4,454 | 4,244 |
Administrative expenses | 20,604 | 20,880 |
Depreciation | 66,725 | 55,719 |
Total operating expenses | 389,147 | 336,889 |
Net operating income | 433,976 | 95,763 |
Other income (expenses) | ||
Interest income | 597 | 674 |
Interest expense | (40,859) | (46,685) |
Share of results of associated company | (1,427) | 842 |
Foreign currency exchange loss | (1,129) | (173) |
Unrealized gain (loss) on marketable securities | (4,542) | 302 |
Loss on derivatives | (21,746) | (9,682) |
Other non-operating gain | 139 | 92 |
Net other expenses | (68,967) | (54,630) |
Net income before income taxes and non-controlling interest | 365,009 | 41,133 |
Income tax benefit (expense) | 47 | (17) |
Net income | 365,056 | 41,116 |
Net income attributable to non-controlling interest | (63) | (3) |
Net income attributable to the Company | $ 364,993 | $ 41,113 |
Basic earnings per share (in US dollars per share) | $ 1.89 | $ 0.24 |
Diluted earnings per share (in US dollars per share) | $ 1.85 | $ 0.24 |
Time charter revenues | ||
Operating revenues | ||
Total operating revenues | $ 76,534 | $ 19,404 |
Voyage charter revenues | ||
Operating revenues | ||
Total operating revenues | 708,528 | 395,445 |
Finance lease interest income | ||
Operating revenues | ||
Total operating revenues | 0 | 484 |
Other income | ||
Operating revenues | ||
Total operating revenues | $ 13,842 | $ 16,350 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 365,056 | $ 41,116 |
Foreign currency translation income (loss) | (36) | 70 |
Other comprehensive income (loss) | (36) | 70 |
Comprehensive income | 365,020 | 41,186 |
Comprehensive income attributable to non-controlling interest | 63 | 3 |
Comprehensive income attributable to the Company | $ 364,957 | $ 41,183 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 224,720 | $ 174,223 |
Restricted cash | 16,339 | 3,153 |
Marketable securities | 1,534 | 3,642 |
Marketable securities pledged to creditors | 4,890 | 7,323 |
Trade accounts receivable, net | 65,930 | 63,245 |
Related party receivables | 8,169 | 15,581 |
Other receivables | 15,447 | 25,468 |
Inventories | 45,246 | 66,664 |
Voyages in progress | 67,260 | 71,339 |
Prepaid expenses and accrued income | 16,636 | 11,167 |
Investment in finance lease | 0 | 157 |
Other current assets | 2,306 | 6,526 |
Total current assets | 468,477 | 448,488 |
Long-term assets | ||
Newbuildings | 28,828 | 46,068 |
Vessels and equipment, net | 3,346,183 | 2,579,905 |
Vessels and equipment under finance leases, net | 57,872 | 418,390 |
Right-of-use assets under operating leases | 17,473 | 12,058 |
Investment in finance lease | 0 | 10,822 |
Investment in associated company | 4,164 | 4,927 |
Goodwill | 112,452 | 112,452 |
Loan notes receivable | 1,500 | 0 |
Long-term derivative instruments receivable | 0 | 148 |
Prepaid consideration | 0 | 55,287 |
Other long-term assets | 14,704 | 9,273 |
Total assets | 4,051,653 | 3,697,818 |
Current liabilities | ||
Short-term debt and current portion of long-term debt | 532,289 | 438,962 |
Current portion of obligations under finance leases | 7,530 | 283,463 |
Current portion of obligations under operating leases | 10,315 | 4,916 |
Related party payables | 19,901 | 20,186 |
Trade accounts payable | 10,476 | 13,042 |
Accrued expenses | 42,380 | 75,745 |
Derivative instruments payable | 25,650 | 4,264 |
Other current liabilities | 17,798 | 7,545 |
Total current liabilities | 666,339 | 848,123 |
Long-term debt | 1,653,297 | 1,254,417 |
Obligations under finance leases | 52,444 | 76,447 |
Obligations under operating leases | 7,434 | 7,561 |
Other long-term liabilities | 6,333 | 1,062 |
Total liabilities | 2,385,847 | 2,187,610 |
Commitments and contingencies | ||
Equity | ||
Share capital (197,692,321 shares. 2019: 196,894,321. Par value $1.00) | 197,692 | 196,894 |
Additional paid in capital | 402,021 | 397,210 |
Contributed surplus | 1,004,094 | 1,070,688 |
Accumulated other comprehensive income | 294 | 330 |
Retained earnings (deficit) | 61,410 | (155,146) |
Total equity attributable to the Company | 1,665,511 | 1,509,976 |
Non-controlling interest | 295 | 232 |
Total equity | 1,665,806 | 1,510,208 |
Total liabilities and equity | $ 4,051,653 | $ 3,697,818 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Equity | ||
Share capital, shares outstanding (in shares) | 197,692,321 | 196,894,321 |
Par value (in dollars per share) | $ 1 | $ 1 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Statement of Cash Flows [Abstract] | |||
Net cash provided by operating activities | $ 445,508 | $ 143,046 | |
Investing activities | |||
Additions to newbuildings, vessels and equipment | (152,846) | (147,579) | |
Investment in associated company | (750) | 0 | |
Proceeds from sale of vessel | 26,556 | 0 | |
Cash inflow on repayment of loan from associated company | 0 | 3,000 | |
Cash outflow on issuance of loan to associated company | (1,500) | 0 | |
Trafigura asset acquisition | (533,748) | 0 | |
Net cash used in investing activities | (662,288) | (144,579) | |
Financing activities | |||
Proceeds from issuance of debt | 650,273 | 144,765 | |
Repayment of long-term debt | (149,732) | (124,446) | |
Repayment of finance leases | (7,984) | (3,355) | |
Net proceeds from issuance of shares | 5,825 | 9,316 | |
Lease termination compensation receipt | 3,186 | 0 | |
Purchase of shares from non-controlling interest | 0 | (269) | |
Debt fees paid | (6,074) | (335) | |
Dividends paid | (215,031) | 0 | |
Net cash provided by financing activities | 280,463 | 25,676 | |
Net change in cash and cash equivalents and restricted cash | 63,683 | 24,143 | |
Cash and cash equivalents and restricted cash at beginning of period | 177,376 | 67,904 | $ 67,904 |
Cash and cash equivalents and restricted cash at end of period | $ 241,059 | $ 92,047 | $ 177,376 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Share capital | Additional paid in capital | Contributed surplus | Accumulated other comprehensive income | Retained earnings (deficit) | Total equity attributable to the Company | Non-controlling interest |
Starting Balance (in shares) at Dec. 31, 2018 | 169,821,192 | |||||||
Increase (decrease) in Equity [Roll Forward] | ||||||||
Shares issued under ATM program (in shares) | 1,146,900 | |||||||
Ending Balance (in shares) at Jun. 30, 2019 | 170,968,092 | |||||||
Starting Balance at Dec. 31, 2018 | $ 169,821 | $ 198,497 | $ 1,090,376 | $ 224 | $ (295,118) | $ 417 | ||
Increase (decrease) in Equity [Roll Forward] | ||||||||
Shares issued under ATM program | 1,147 | 8,169 | ||||||
Stock compensation expense | 438 | |||||||
Gain attributable to change in non-controlling interest | (70) | (199) | ||||||
Other comprehensive income | $ 70 | 70 | ||||||
Net income | 41,116 | 41,113 | 3 | |||||
Cash dividends | 0 | 0 | ||||||
Ending Balance at Jun. 30, 2019 | $ 1,214,888 | $ 170,968 | 207,034 | 1,090,376 | 294 | (254,005) | $ 1,214,667 | 221 |
Starting Balance (in shares) at Dec. 31, 2019 | 196,894,321 | 196,894,321 | ||||||
Increase (decrease) in Equity [Roll Forward] | ||||||||
Shares issued on exercise of options (in shares) | 798,000 | |||||||
Ending Balance (in shares) at Jun. 30, 2020 | 197,692,321 | 197,692,321 | ||||||
Starting Balance at Dec. 31, 2019 | $ 1,510,208 | $ 196,894 | 397,210 | 1,070,688 | 330 | (155,146) | 232 | |
Increase (decrease) in Equity [Roll Forward] | ||||||||
Shares issued on exercise of options | 798 | 5,027 | ||||||
Stock compensation expense | (216) | |||||||
Gain attributable to change in non-controlling interest | 0 | 0 | ||||||
Other comprehensive income | (36) | (36) | ||||||
Net income | 365,056 | 364,993 | 63 | |||||
Cash dividends | (66,594) | (148,437) | ||||||
Ending Balance at Jun. 30, 2020 | $ 1,665,806 | $ 197,692 | $ 402,021 | $ 1,004,094 | $ 294 | $ 61,410 | $ 1,665,511 | $ 295 |
INTERIM FINANCIAL DATA
INTERIM FINANCIAL DATA | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
INTERIM FINANCIAL DATA | INTERIM FINANCIAL DATAThe 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, except as noted below in Note 2, and, in the opinion of management, include all material adjustments, consisting only of normal recurring adjustments considered necessary for a fair statement of the Company's financial statements, in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The Unaudited Condensed 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, 2019, filed with the Securities and Exchange Commission on March 20, 2020. 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, 2020 are not necessarily indicative of the results for the year ending December 31, 2020. The year-end Condensed Consolidated Balance Sheet was derived from audited financial information, but does not include all disclosures required by US GAAP. |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2020 | |
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. 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, 2019, which was filed with the Securities and Exchange Commission on March 20, 2020, with the exception of certain changes noted below. ASU 2016-13 (ASC 326 Financial Instruments - Credit losses) The Company has adopted this update effective January 1, 2020 using the modified retrospective transition approach. 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. In may 2019, the FASB issued ASU No. 2019-05 Codification improvements to Financial instruments-Credit Losses, (Topic 326), which provides an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. In April 2019, the FASB issued ASU No. 2019-04, Codification improvements to Financial instruments-Credit Losses, (Topic 326), which includes amendments related to the estimate of equity method losses. In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, which clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. The Company assesses allowances for its estimate of expected credit losses based on historical experience, other currently available evidence, and reasonable and supportable forecasts about the future, including the use of credit default ratings from third party providers of credit rating data. The Company assesses credit risk in relation to its non-operating lease receivables using a portfolio approach. The Company's main portfolio segments include (i) state-owned enterprises, (ii) oil majors, (iii) commodities traders and (iv) related parties. In addition, the Company performs individual assessments for customers that do not share risk characteristics with other customers (for example a customer under bankruptcy or a customer with known disputes or collectability issues). The Company makes significant judgements and assumptions to estimate its expected losses. Based on the Company's evaluation, these standard updates have not materially impacted its Condensed Consolidated Financial Statements on adoption or as of June 30, 2020. ASU 2017-04 (ASC 350 Intangibles - Goodwill) The Company has adopted this update effective January 1, 2020, which simplifies the test for goodwill impairment. The accounting update eliminates Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of the assets acquired and liabilities assumed in a business combination. Instead, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, however the loss recognized should not exceed the total amount of goodwill allocated to the reporting unit. The Company will apply the one step approach in our quantitative impairment assessments henceforth which may result in the recognition of impairment losses sooner as compared to the two-step impairment test. There has been no impact of this accounting standard on the Company’s Condensed Consolidated Financial Statements on adoption or as of June 30, 2020. ASU 2018-13 (ASC 820 Fair Value Measurement) The Company has adopted this update effective January 1, 2020, which removes, modifies and adds specific disclosure requirements in relation to fair value measurement with the aim of improving the effectiveness of disclosures to the financial statements. The standard update did not materially impact the Condensed Consolidated Financial Statements on adoption or as of June 30, 2020. ASU 2018-18 (ASC 808 Collaborative Arrangements) The Company has adopted this update effective January 1, 2020, which provides clarity on when transactions between entities in a collaborative arrangement should be accounted for under the new revenue standard, ASC 606. In determining whether transactions in collaborative arrangements should be accounted under the revenue standard, the update specifies that entities shall apply unit of account guidance to identify distinct goods or services and whether such goods and services are separately identifiable from other promises in the contract. The accounting update also precludes entities from presenting transactions with a collaborative partner which are not in scope of the new revenue standard together with revenue from contracts with customers. The standard update did not materially impact the Condensed Consolidated Financial Statements on adoption or as of June 30, 2020. |
RECENT ACCOUNTING PRONOUNCMENTS
RECENT ACCOUNTING PRONOUNCMENTS | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS In March 2020, the FASB issued ASU 2020-04 (ASC 848 Reference Rate Reform) , which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are elective and apply to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. We are currently evaluating the impact of electing the expedients and exceptions for applying GAAP provided by the update on our Condensed Consolidated Financial Statements. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The components of the numerator and the denominator in the calculation of basic and diluted earnings per share are as follows for the six months ended June 30, 2020 and June 30, 2019: (in thousands of $) 2020 2019 Net income attributable to the Company 364,993 41,113 2020 2019 Weighted average number of shares (000s) 193,559 169,946 Dilutive effect of share options 142 — Dilutive effect of contingently returnable shares 4,106 — Denominator for diluted earnings per share 197,807 169,946 2020 2019 Cash dividends per share declared $ 1.10 $ 0.00 The impact of stock options using the treasury stock method was dilutive in the six months ended June 30, 2020 as the exercise price was lower than the average share price during the period and, therefore 141,753 options were included in the denominator in the calculation. The 16,035,856 shares issued to Trafigura as consideration as part of the Acquisition were legally issued and outstanding as of the grant date on August 23, 2019 and were therefore included in share capital from this date. Trafigura was the beneficial owner of the shares, was entitled to exercise voting rights, and was also eligible for any dividends if-and-when declared. ASC 260 defines issued shares that are held in escrow and all or part must be returned if specified conditions are not met as "contingently returnable". The shares issued as part of the Acquisition were treated as contingently returnable shares for the purpose of calculating earnings per share as they were held in escrow until such date after November 30, 2019 that Trafigura wished to dispose of such shares, in which case they could be removed from escrow and sold, with the proceeds being placed in a cash escrow account until closing of the Acquisition. Shares not disposed of prior to closing of the Acquisition remained in the escrow account until the closing of the Acquisition which took place on March 16, 2020. In the six months ended June 30, 2020, 4,106,028 shares were treated as contingently returnable and have been excluded from the denominator in the calculation of basic earnings per share and included in the denominator in the calculation of diluted earnings per share until the closing date. Following the closing of the Acquisition on March 16, 2020, all shares have been released from the escrow account and are included in the weighted average number of ordinary shares from the date of release from that account as they are no longer contingently returnable. |
OPERATING REVENUES
OPERATING REVENUES | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
OPERATING REVENUES | OPERATING REVENUES Our shipping revenues are primarily generated from time charters and voyage charters. In a time charter, the vessel is hired by the charterer for a specified period of time in exchange for consideration which is based on a daily hire rate. Generally, the charterer has the discretion over the ports visited, shipping routes and vessel speed. The contract/charter party generally provides typical warranties regarding the speed and performance of the vessel. The charter party generally has some owner protective restrictions such that the vessel is sent only to safe ports by the charterer and carries only lawful or non-hazardous cargo. In a time charter contract, we are responsible for all the costs incurred for running the vessel such as crew costs, vessel insurance, repairs and maintenance and lubes. The charterer bears the voyage related costs such as bunker expenses, port charges and canal tolls during the hire period. The performance obligations in a time charter contract are satisfied over the term of the contract beginning when the vessel is delivered to the charterer until it is redelivered back to us. The charterer generally pays the charter hire in advance of the upcoming contract period. Time charter contracts and bareboat contracts are accounted for under ASC 842 leases and revenues are recorded over the term of the charter as a service is provided. When a time charter contract is linked to an index, we recognize revenue for the applicable period based on the actual index for that period. In a voyage charter contract, the charterer hires the vessel to transport a specific agreed-upon cargo for a single voyage. The consideration in such a contract is determined on the basis of a freight rate per metric ton of cargo carried or occasionally on a lump sum basis. The charterer is responsible for any short loading of cargo or "dead" freight. The voyage charter party generally has standard payment terms with freight paid on completion of discharge. The voyage charter party generally has a "demurrage" clause. As per this clause, the charterer reimburses us for any potential delays exceeding the allowed laytime as per the charter party clause at the ports visited, which is recorded as voyage revenue, as such, demurrage is considered variable consideration under the contract. Estimates and judgments are required in ascertaining the most likely outcome of a particular voyage and actual outcomes may differ from estimates. Such estimates are reviewed and updated over the term of the voyage charter contract. In a voyage charter contract, the performance obligations begin to be satisfied once the vessel begins loading the cargo. Certain of our voyage charter contracts contain a lease. Voyage charters contain a lease component if the contract (i) specifies a specific vessel asset; and (ii) has terms that allow the charterer to exercise substantive decision-making rights, which have an economic value to the charterer and therefore allow the charterer to direct how and for what purpose the vessel is used. Voyage charter revenues and expenses are recognized ratably over the estimated length of each voyage, which the Company has assessed to commence on loading of the cargo. The new lease standard provides a practical expedient for lessors in which the lessor may elect, by class of underlying asset, to not separate non-lease components from the associated lease component and, instead, to account for these components as a single component if both of the following are met: (1) the timing and pattern of transfer of the non-lease component(s) and associated lease component are the same and (2) the lease component, if accounted for separately, would be classified as an operating lease. When a lessor, we have elected this expedient for our time charter contracts and voyage charter contracts that qualify as leases and thus not separated the non-lease component, or service element, from the lease. Furthermore, the standard requires the Company to account for the combined component in accordance with ASC 606 revenues from contracts with customers if the non-lease components are the predominant components. Under this guidance the Company has assessed that the lease components were the predominant component for all of its time charter contracts. Furthermore, for certain of its voyage charter contracts the lease components were the predominant components. The lease and non-lease components of our revenues in the six months ended June 30, 2020 were as follows: (in thousands of $) Lease Non-lease Total Time charter revenues 76,534 — 76,534 Voyage charter revenues 514,343 194,185 708,528 Other income — 13,842 13,842 Total 590,877 208,027 798,904 Certain voyage expenses are capitalized between the previous discharge port, or contract date if later, and the next load port and amortized between load port and discharge port. $2.3 million of contract assets were capitalized in the period ended June 30, 2020 as "Other current assets", of which $0.7 million was amortized up to June 30, 2020, leaving a remaining balance of $1.6 million as of June 30, 2020. $4.5 million of contract assets were amortized in the six months ended June 30, 2020 in relation to voyages in progress at the end of December 31, 2019. No impairment losses were recognized in the period. As of June 30, 2020 and December 31, 2019, the Company reported the following contract assets in relation to its contracts with customers, including those contracts containing lease components where the non-lease component was the predominant component and the revenues where therefore accounted for under ASC 606: (in thousands of $) 2020 2019 Voyages in progress 18,704 26,021 Trade accounts receivable 30,090 42,104 Related party receivables 4,044 9,137 Other current assets 1,607 4,491 Total 54,445 81,753 |
OTHER OPERATING GAINS
OTHER OPERATING GAINS | 6 Months Ended |
Jun. 30, 2020 | |
Operating Income (Loss) [Abstract] | |
OTHER OPERATING GAINS | OTHER OPERATING GAINS Other operating gains for the six months ended June 30, 2020 and June 30, 2019 are as follows: (in thousands of $) 2020 2019 Gain on termination of vessel lease 7,409 — Gain on sale of vessel 12,354 — Gain on settlement of claim 3,422 — Gain on pool arrangements 766 681 Other gains 268 288 Other operating gains 24,219 969 In February 2020, the Company agreed with SFL to terminate the long-term charter for the 2002-built VLCC Front Hakata upon the sale and delivery of the vessel by SFL to an unrelated third party. Frontline received a compensation payment of $3.2 million from SFL for the termination of the current charter and recognized a gain on termination of $7.4 million. The charter with SFL terminated in February 2020. In April 2020, the Company sold one VLCC previously recorded as an investment in finance lease at a purchase price of $25.5 million. The vessel was delivered to its buyers in June 2020 and the Company recorded a gain on sale of $12.4 million. In the six months ended June 30, 2020, the Company recorded a gain on pool arrangements of $0.8 million (2019: gain of $0.7 million) and a $3.4 million gain on settlement of a claim. A further $0.3 million gain (2019: $0.3 million gain) was recognized in relation to other miscellaneous settlements. |
RESTRICTED CASH
RESTRICTED CASH | 6 Months Ended |
Jun. 30, 2020 | |
Cash and Cash Equivalents [Abstract] | |
RESTRICTED CASH | RESTRICTED CASH Restricted cash consists of cash, which may only be used for certain purposes and is held under a contractual arrangement. Restricted cash as of June 30, 2020 does not include cash balances of $106.1 million (December 2019: $38.3 million), which represents 100% (December 2019: 50%) of the cash required to be maintained by the financial covenants in our loan agreements. The Company is permitted to satisfy up to 50% of the cash requirement by maintaining a committed undrawn credit facility with a remaining availability of greater than 12 months. The Company did not satisfy any of the minimum cash requirement with a committed undrawn credit facility as of June 30, 2020 because the Company's senior unsecured facility agreement with an affiliate of Hemen is repayable in May 2021. Furthermore, FSL, the chartering counterparty with SFL with respect to the remaining two VLCCs leased from them, has agreed to certain dividend restrictions as a result of the amendment of the terms of the long-term charter agreements in May 2015. In order to make or pay any dividend or other distribution to the Company, FSL shall demonstrate a cash buffer of $2.0 million per vessel both prior to and following such payment, and following payment of the next monthly hire due plus any profit share accrued under the agreement. As of June 30, 2020, the |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 6 Months Ended |
Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
MARKETABLE SECURITIES | MARKETABLE SECURITIES A summary of the movements in our marketable securities for the six months ended June 30, 2020 and the year ended December 31, 2019 is presented in the table below: (in thousands of $) 2020 2019 Balance at beginning of period 3,642 836 Unrealized gain (loss) on marketable securities (4,542) 1,737 Repurchase of securities pledged to creditors 7,324 8,392 Marketable securities pledged to creditors (4,890) (7,323) Balance at end of period 1,534 3,642 Avance Gas In the six months ended June 30, 2020, the Company recognized an unrealized loss of $1.7 million in relation to the 0.4 million shares held in Avance Gas Holdings Ltd ("Avance Gas"). SFL In the six months ended June 30, 2020, the Company recognized an unrealized loss of $0.4 million in relation to the 0.1 million shares held in SFL. Golden Ocean In December 2019, the Company sold 1,260,358 shares in Golden Ocean Group Ltd. ("Golden Ocean") for proceeds of $7.2 million. At the same time the Company entered into a forward contract to repurchase 1.3 million shares in Golden Ocean in March 2020 for $7.2 million. In March 2020, the Company repurchased these shares and subsequently sold them for proceeds of $3.7 million. At the same time the Company entered into a forward contract to repurchase 1.3 million shares in Golden Ocean in June 2020 for $3.7 million and as such made a net cash settlement of $3.5 million after adjustment for foreign exchange differences. This was treated as a settlement of debt. In June 2020, the Company repurchased these shares and subsequently sold them for proceeds of $5.3 million. At the same time the Company entered into a new forward contract to repurchase the 1.3 million shares in September 2020 for $5.3 million and as such received a net cash settlement of $1.6 million after adjustment for foreign exchange differences. This was treated as a drawdown of debt. The transaction has been accounted for as a secured borrowing, with the shares retained in marketable securities and a liability recorded within short-term debt for $5.2 million. These transactions have been reported on a net basis in the Condensed Consolidated Statement of Cash Flows. As of June 30, 2020, the Company held 1,270,657 shares in Golden Ocean, of which 1,260,358 was held as marketable securities pledged to creditors. |
NEWBUILDINGS
NEWBUILDINGS | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
NEWBUILDINGS | NEWBUILDINGS Movements in the six months ended June 30, 2020 are summarized as follows; (in thousands of $) Balance at December 31, 2019 46,068 Additions, net 143,880 Interest capitalized 1,101 Transfer to Vessels and Equipment, net (162,221) Balance at June 30, 2020 28,828 In the six months ended June 30, 2020, the Company took delivery of one Suezmax, Front Cruiser , and one VLCC, Front Dynamic . As of June 30, 2020, the Company’s newbuilding program consisted of four LR2 tankers; two are expected to be delivered in January 2021 and February 2021, respectively, and two are expected to be delivered in August 2021. |
VESSELS AND EQUIPMENT, NET
VESSELS AND EQUIPMENT, NET | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
VESSELS AND EQUIPMENT, NET | VESSELS AND EQUIPMENT, NET Movements in the six months ended June 30, 2020 are summarized as follows; (in thousands of $) Cost Accumulated Depreciation Net Carrying Value Balance at December 31, 2019 3,013,506 (433,601) 2,579,905 Depreciation — (59,443) Additions to vessels and equipment 663,500 — Transfers from Newbuildings 162,221 — Balance at June 30, 2020 3,839,227 (493,044) 3,346,183 In the six months ended June 30, 2020, the Company completed the acquisition of 10 Suezmax tankers from Trafigura. See Note 19 for full details of the accounting for this transaction. In the six months ended June 30, 2020, the Company took delivery of one Suezmax, Front Cruiser , and one VLCC, Front Dynamic . The Company also completed the installation of EGCS on one vessel during the period. |
VESSELS AND EQUIPMENT UNDER FIN
VESSELS AND EQUIPMENT UNDER FINANCE LEASE, NET | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
VESSELS AND EQUIPMENT UNDER FINANCE LEASE, NET | VESSELS AND EQUIPMENT UNDER FINANCE LEASE, NET As of June 30, 2020, the Company leased in two vessels on long-term time charter from SFL (December 2019: three vessels) which are classified as finance leases. (in thousands of $) Cost Accumulated Depreciation Net Carrying Value Balance at December 31, 2019 484,065 (65,675) 418,390 Additions 45 — Lease termination (40,412) 20,682 Trafigura asset acquisition (339,818) 6,267 Depreciation — (7,282) Balance at June 30, 2020 103,880 (46,008) 57,872 The outstanding obligations under finance leases as of June 30, 2020 are payable as follows: (in thousands of $) Year 1 11,705 Year 2 10,946 Year 3 11,705 Year 4 11,737 Year 5 10,946 Thereafter 19,217 Minimum lease payments 76,256 Less: imputed interest (16,282) Present value of obligations under finance leases 59,974 The outstanding obligations under finance leases as of December 31, 2019 are payable as follows: (in thousands of $) 2020 291,964 2021 17,557 2022 16,419 2023 17,557 2024 16,468 Thereafter 25,920 Minimum lease payments 385,885 Less: imputed interest (25,975) Present value of obligations under finance leases 359,910 The Company recognized the following income (expenses) in relation to the amortization of finance lease assets and obligations in the six months ended June 30, 2020 and June 30, 2019: (in thousands of $) June 30, 2020 June 30, 2019 Depreciation of vessels under finance leases (7,282) (5,967) Interest expense on obligations under finance leases (4,833) (3,552) Contingent rental income (expense) (8,270) 2,555 Gain on termination of vessel lease 7,409 — Total finance lease expense, net (12,976) (6,964) zero |
OPERATING LEASES
OPERATING LEASES | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
OPERATING LEASES | OPERATING LEASES As of June 30, 2020, two vessels are leased in on time charter from a third party and have been classified as operating leases. These leases are at fixed rates. The initial two-year terms of the leases, which ended in April 2020, were extended for an additional year. The Company has allocated the consideration due under the leases between the lease and non-lease components based upon the estimated stand alone price of the services provided by the owner of the vessels, which include the provision of crewing, vessel insurance, repairs and maintenance and lubes. In the six months ended June 30, 2020, the Company has recorded the non-lease component of $3.3 million ($3.3 million in the six months ended June 30, 2019) within Ship operating expenses and has recognized the lease component of $4.5 million ($4.2 million in the six months ended June 30, 2019) within Charter hire expense within the Condensed Consolidated Statement of Operations. Furthermore, the Company is committed to make rental payments under operating leases for office premises. Certain of these leases include variable lease elements linked to inflation indexes. Such variable payments were estimated on the date of adoption of ASC 842 based on the index at that time and included in the minimum lease payments. In the six months ended June 30, 2020, lease expense of $1.2 million ($1.4 million in the six months ended June 30, 2019) is recorded in Administrative expenses in the Condensed Consolidated Statement of Operations. Rental expense The future minimum rental payments under the Company's non-cancellable operating leases as of June 30, 2020 are as follows: (in thousands of $) Year 1 11,291 Year 2 1,889 Year 3 1,775 Year 4 1,682 Year 5 1,661 Thereafter 501 Total minimum lease payments 18,799 Less: Imputed interest (1,049) Present value of operating lease liabilities 17,750 Total expense for operating leases was $5.8 million in the six months ended June 30, 2020 (2019: $5.6 million). Total cash paid in respect of operating leases was $5.7 million in the six months ended June 30, 2020 (2019: $5.2 million). The weighted average discount in relation to the operating leases was 3.8% for the six months ended June 30, 2020 and the weighted average lease term was 3 years for the six months ended June 30, 2020. Rental income One LR2 tanker and two VLCCs were on fixed rate time charters as of June 30, 2020 (one LR2 tanker and one Suezmax tanker as of December 31, 2019). Two Suezmax tankers were on fixed rate time charters with profit sharing clauses as of December 31, 2019 and were terminated in the six months ended June 30, 2020. In addition, Frontline agreed to charter-out five vessels to Trafigura under the SPA, for a period of three years commencing in August 2019, at a daily base rate of $28,400 plus 50% profit share. For accounting purposes, the leases did not commence until closing of the transaction, which took place on March 16, 2020. See Note 19 for further details. The minimum future revenues to be received under our fixed rate contracts as of June 30, 2020 are as follows: (in thousands of $) Year 1 98,836 Year 2 51,830 Year 3 3,266 Year 4 — Year 5 — Thereafter — Total minimum lease payments 153,932 Profit share to be earned under our chartering arrangements has been excluded from the minimum future revenues above. Our revenues from these leases have been included within time charter revenues in the Condensed Consolidated Statement of Operations, which solely relates to leasing revenues. There are no options to extend our operating leases where we are the lessor. The cost and accumulated depreciation of vessels leased to third parties as of June 30, 2020 were $510.8 million and $39.2 million, respectively, and as of December 31, 2019 were $239.4 million and $47.8 million, respectively. Contingent rental income The Company recognized profit share income of $2.8 million in the six months ended June 30, 2020 in relation to the two Suezmax tankers on fixed rate time charters with profit sharing clauses, which were both terminated in the period. In addition, the Company recognized profit share income of $6.3 million in relation to the five time charters to Trafigura from closing of the transaction until June 30, 2020. |
INVESTMENT IN ASSOCIATED COMPAN
INVESTMENT IN ASSOCIATED COMPANY | 6 Months Ended |
Jun. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENT IN ASSOCIATED COMPANY | INVESTMENT IN ASSOCIATED COMPANY In October 2019, the Company announced that FMSI and Clean Marine AS had entered into a term sheet pursuant to which the entities would effect a business combination to create a leading provider of EGCS. In order to facilitate the merger a new holding company, FMS Holdco, was established into which the former shareholders of FMSI contributed their shareholdings in FMSI in exchange for shares in FMS Holdco. As a result of this transaction, the Company owned 28.9% of the issued share capital of FMS Holdco. FMSI was subsequently sold to Clean Marine AS by FMS Holdco as a result of the merger in exchange for 50% of the issued share capital of Clean Marine AS. The merger completed on January 23, 2020. Furthermore, the Company acquired an additional stake in FMS Holdco from another shareholder for $0.8 million. Following the transactions, Frontline owns an effective 17.34% interest in Clean Marine AS through its 34.7% equity interest in FMS Holdco, which is accounted for under the equity method. A share of losses of FMS Holdco of $2.6 million was recognized in the six months ended June 30, 2020. In January 2020, the joint venture agreement with Golden Ocean and companies in the Trafigura Group to establish a leading global supplier of marine fuels was completed. As a result, Frontline took a 15% interest in the joint venture company, TFG Marine, and made a $1.5 million shareholder loan to TFG Marine. Frontline concluded that it is able to exercise significant influence over TFG Marine as a result of its equity shareholding and board representation and therefore its investment is accounted for under the equity method. A share of results of TFG Marine of $1.1 million was recognized in the six months ended June 30, 2020. |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT In March 2020, the Company signed a sale-and-leaseback agreement in an amount of $544.0 million with ICBCL to finance the cash amount payable upon closing of the Acquisition, which took place on March 16, 2020. The lease financing has a tenor of seven years, carries an interest rate of LIBOR plus a margin of 230 basis points, has an amortization profile of 17.8 years and includes purchase options for the Company throughout the term with a purchase obligation at the end of the term. The Company is precluded from accounting for the sale of the vessels due to the purchase obligation at the end of the term which prevents the lessor from obtaining control of the vessels and as such the lease has been accounted for as a secured borrowing, with the vessels recorded under "Vessels and equipment, net". The facility was fully drawn down at the closing of the Acquisition. In February 2020, the Company settled the outstanding balances due under the notes payable in relation to the termination of the leases for Front Circassia, Front Page, Front Serenade, Front Stratus and Front Ariake of approximately $20.0 million. In April 2020, the Company repaid $60.0 million of its $275.0 million senior unsecured facility agreement with an affiliate of Hemen. As of June 30, 2020, $215.0 million remains available under the facility following this repayment. In May 2020, the Company signed a restated and amended senior secured term loan facility with Nordea in an amount of up to $50.0 million to refinance an existing loan facility maturing in March 2021. The new facility matures in March 2023, carries an interest rate of LIBOR plus a margin of 190 basis points and has an amortization profile of 20 years. The facility was fully drawn down in July 2020 and $39.0 million of the refinanced facility has been recorded as long-term debt as of June 30, 2020. In May 2020, the Company drew down $42.9 million under its senior secured term loan facility with Credit Suisse entered into in November 2019 to partially finance the delivery of the Suezmax tanker Front Cruiser from HSHI. The facility matures five years after the vessel's delivery date, carries an interest rate of LIBOR plus a margin of 190 basis points and has an amortization profile of 18 years. In June 2020, the Company drew down $62.5 million under its senior secured term loan facility with Crédit Agricole entered into in May 2020 to partially finance the delivery of the VLCC Front Dynamic from HSHI. The facility matures five years after the vessel's delivery date, carries an interest rate of LIBOR plus a margin of 190 basis points and has an amortization profile of 18 years. Golden Ocean shares In December 2019, the Company sold 1,260,358 shares in Golden Ocean for proceeds of $7.2 million. At the same time the Company entered into a forward contract to repurchase 1.3 million shares in Golden Ocean in March 2020 for $7.2 million. In March 2020, the Company repurchased these shares and subsequently sold them for proceeds of $3.7 million. At the same time the Company entered into a forward contract to repurchase 1.3 million shares in Golden Ocean in June 2020 for $3.7 million and as such made a net cash settlement of $3.5 million after adjustment for foreign exchange differences. This has been treated as a settlement of debt. In June 2020, the company repurchased these shares and subsequently sold them for proceeds of $5.3 million. At the same time the Company entered into a new forward contract to repurchase the 1.3 million shares in September 2020 for $5.3 million and as such received a net cash settlement of $1.6 million after adjustment for foreign exchange differences. This was treated as a drawdown of debt. The transaction has been accounted for as a secured borrowing, with the shares retained in marketable securities and a liability recorded within short-term debt for $5.2 million. These transactions have been reported on a net basis in the Condensed Consolidated Statement of Cash Flows. Debt issuance costs The Company has recorded debt issuance costs (i.e. deferred charges) of $15.3 million as of June 30, 2020 (December 2019: $8.0 million) as a direct deduction from the carrying amount of the related debt. Assets pledged (in thousands of $) 2020 2019 Vessels and equipment, net 3,344,705 2,578,135 |
SHARE CAPITAL
SHARE CAPITAL | 6 Months Ended |
Jun. 30, 2020 | |
SHARE CAPITAL [Abstract] | |
SHARE CAPITAL | SHARE CAPITAL The authorized share capital of the Company as of June 30, 2020 is $500,000,000 divided into 500,000,000 shares of $1.00 par value each, of which 197,692,321 shares (December 31, 2019: 196,894,321 shares) of $1.00 par value each are in issue and fully paid. In January 2020, the Company issued 798,000 ordinary shares under its share options scheme, the Frontline Scheme, to Robert Hvide Macleod at a strike share price of $7.30 per share. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2020 | |
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 $260.0 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. In the six months ended June 30, 2020, the Company entered into three interest rate swaps with DNB whereby the floating interest rate on notional debt totaling $250.0 million was switched to a fixed rate. In the six months ended June 30 2020, the Company entered into two interest rate swaps with Nordea Bank whereby the floating interest rate on notional debt totaling $150.0 million was switched to a fixed rate. As of June 30, 2020, the Company recorded a derivative instruments receivable of nil (December 31, 2019: $0.1 million) and a derivative instruments payable of $25.7 million (December 31, 2019: $4.3 million) in relation to these agreements. The Company recorded a loss on derivatives of $21.7 million in the six months ended June 30, 2020 (six months ended June 30, 2019: loss of $9.7 million) in relation to these agreements. The interest rate swaps are not designated as hedges and are summarized as of June 30, 2020 as follows: Notional Amount Inception Date Maturity Date Fixed Interest Rate ($000s) — June 2013 June 2020 1.4025 % 36,343 September 2013 September 2020 1.5035 % 61,998 December 2013 December 2020 1.6015 % 12,004 March 2014 March 2021 1.6998 % 12,347 June 2014 June 2021 1.7995 % 12,690 September 2014 September 2021 1.9070 % 150,000 February 2016 February 2026 2.1970 % 100,000 March 2020 March 2027 0.9750 % 50,000 March 2020 March 2027 0.6000 % 100,000 March 2020 March 2025 0.9000 % 100,000 April 2020 April 2027 0.5970 % 50,000 April 2020 April 2025 0.5000 % 685,382 Fair Values The carrying value and estimated fair value of the Company's financial assets and liabilities as of June 30, 2020 and December 31, 2019 are as follows: 2020 2019 Carrying Fair Carrying Fair Assets: Cash and cash equivalents 224,720 224,720 174,223 174,223 Restricted cash 16,339 16,339 3,153 3,153 Liabilities: Floating rate debt 2,135,671 2,135,671 1,553,928 1,553,928 Fixed rate debt 65,169 64,894 147,413 146,225 The estimated fair value of financial assets and liabilities as of June 30, 2020 are as follows: (in thousands of $) Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents 224,720 224,720 — — Restricted cash 16,339 16,339 — — Liabilities: Floating rate debt 2,135,671 — 2,135,671 — Fixed rate debt 64,894 — 5,169 59,725 The estimated fair value of financial assets and liabilities as of December 31, 2019 are as follows: (in thousands of $) Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents 174,223 174,223 — — Restricted cash 3,153 3,153 — — Liabilities: Floating rate debt 1,553,928 — 1,553,928 — Fixed rate debt 146,225 — 7,329 138,896 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 two inputs and is considered to be equal to the carrying value since it bears variable interest rates, which are reset on a quarterly basis. Floating rate debt is presented net of deferred financing charges of $15.3 million as of June 30, 2020 (December 2019: $8.0 million). Fixed rate debt - short-term debt held with a third party bank has been valued using level two inputs, the remaining fixed rate debt has been determined using level three inputs being the discounted expected cash flows of the outstanding debt. Assets Measured at Fair Value on a Nonrecurring Basis On March 16, 2020, the Company closed the Acquisition with Trafigura and recorded the vessels and time charters acquired based on their proportionate share of the fair value of the total consideration of $651.8 million. As such, $11.9 million of the combined fair value of the consideration was recognized within other current and long-term liabilities in relation to the time charters, and the vessels were recorded at a combined fair value of $663.7 million. See Note 19 for further details. The fair value of the vessels acquired upon were valued (level two) based on the average of broker valuations from two different ship broker companies. The brokers assess each vessel based on, among others, age, yard, deadweight capacity and compare this to market transactions. The time charter contracts were fair valued (level three) using an 'excess earnings' technique whereby the terms of the contract are assessed relative to current market conditions and they were recorded at the sum of the incremental or decremental cash flows arising over the life of the contracts. 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 one). The fair value (level two) of derivative interest rate 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, or RBS, DNB Bank ASA, or DNB 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 DNB. However, the Company believes this risk is remote. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS We transact business with the following related parties, being companies in which Hemen and companies associated with Hemen have a significant interest: SFL, Seadrill Limited, Seatankers Management Norway AS, Seatankers Management Co. Ltd, Golden Ocean, Alta Trading UK Limited (formerly known as Arcadia Petroleum Limited), Archer Limited, Flex LNG Ltd and Avance Gas. We also own interests in TFG Marine and Clean Marine AS (through our interest in FMS Holdco) which are accounted for as equity method investments. SFL Transactions As of June 30, 2020, the Company held two vessels under finance leases, which are leased from SFL. The remaining periods on these leases as of June 30, 2020 was approximately seven years. In February 2020, the Company agreed with SFL to terminate the long-term charter for the 2002-built VLCC Front Hakata upon the sale and delivery of the vessel by SFL to an unrelated third party. Frontline received a compensation payment of $3.2 million from SFL for the termination of the current charter. The Company recognized a gain on termination, including the compensation payment, of $7.4 million in the six months ended June 30, 2020. The charter with SFL terminated in February 2020. In conjunction with the termination of the lease, the Company has settled the outstanding balances due under the notes payable in relation to the termination of the leases for Front Circassia, Front Page, Front Serenade, Front Stratus and Front Ariake of approximately $20.0 million. The Company was charged $0.2 million in the six months ended June 30, 2020 (six months ended June 30, 2019: $0.8 million) for interest expense in relation to these notes. A summary of leasing transactions with SFL in the six months ended June 30, 2020 and June 30, 2019 are as follows; (in thousands of $) 2020 2019 Charter hire payable (principal and interest) 4,360 5,913 Lease interest expense 2,455 3,552 Contingent rental expense (income) 8,270 (2,555) Remaining lease obligation 59,974 93,322 Contingent rental expense in 2020 (income in 2019) is due to the fact that the actual profit share expense earned by SFL in the six months ended June 30, 2020 of $10.4 million (six months ended June 30, 2019: $1.5 million) was $8.3 million more (six months ended June 30, 2019: $2.6 million less) than the amount accrued in the lease obligation payable when the leases were recorded at fair value at the time of the merger between Frontline Ltd. and Frontline 2012 Ltd. In January 2014, the Company commenced a pooling arrangement with SFL, between two of its Suezmax tankers Front Odin and Front Njor d and two SFL vessels Glorycrown and Everbright . The Company recognized income of $0.7 million in the six months ended June 30, 2020 in relation to this pooling arrangement (six months ended June 30, 2019: $0.2 million). Transactions with associated companies In the six months ended June 30, 2020, the Company paid or accrued amounts totaling $4.6 million due to Clean Marine AS in relation to the installation of EGCS on its owned. As of June 30, 2020, the Company has committed to the installation of EGCS with Clean Marine on 10 vessels owned by the Company, with a financial commitment of $3.7 million, excluding installation costs. In the six months ended June 30, 2020, the Company completed the acquisition of 15% of the share capital of TFG Marine which is accounted for under the equity method. As result of this transaction the Company advanced a shareholder loan of $1.5 million to TFG Marine. The Company also entered into a bunker supply arrangement with TFG Marine, under which it has paid $16.1 million to TFG Marine and $1.1 million remains due as of June 30, 2020. The Company has also agreed to provide a $50.0 million guarantee in respect of the performance of its subsidiaries, and two subsidiaries of an affiliate of Hemen, under a bunker supply arrangement with TFG Marine. As of June 30, 2020 there are no exposures under this guarantee. In addition, should TFG Marine be required to provide a parent company guarantee to its bunker suppliers or finance providers then for any guarantee that is provided by the Trafigura Group and becomes payable Frontline shall pay a pro-rata amount based on its share of the equity in TFG Marine . The maximum liability under this guarantee is $6.0 million and there are no amounts payable under this guarantee as of June 30, 2020. Transactions with other affiliates of Hemen In April 2020, the Company repaid $60.0 million of its senior unsecured revolving credit facility of up to $275.0 million with an affiliate of Hemen. The Company recognized in terest expense of $2.8 million i n the six months ended June 30, 2020 (six months ended June 30, 2019: $5.1 million). The Credit Facility is repayable in May 2021 and $215.0 million remains available as of June 30, 2020. In the six months ended June 30, 2020, the Company chartered seven of its vessels on voyage charters to an affiliate of Hemen. The Company recognized revenue of $23.6 million in relation to these voyages. A summary of net amounts earned from (paid to) related parties in the six months ended June 30, 2020 and June 30, 2019 are as follows: (in thousands of $) 2020 2019 Seatankers Management Co. Ltd 6,037 8,896 SFL 2,206 1,710 Golden Ocean 3,311 3,448 Flex LNG Ltd 635 510 Seatankers Management Norway AS (248) (270) Seadrill Limited 133 239 Archer Limited 225 193 Alta Trading UK Limited 23,558 — Avance Gas 335 87 Other related parties 76 83 Amounts earned from related parties comprise office rental income, technical and commercial management fees, newbuilding supervision fees, freights, corporate and administrative services income and interest income. Amounts paid to related parties comprise primarily rental for office space and the provision of other administrative services and guarantee fees. Related party balances A summary of balances due from related parties as of June 30, 2020 and December 31, 2019 is as follows: (in thousands of $) 2020 2019 SFL 3,012 4,982 Seatankers Management Co. Ltd 1,865 5,490 Archer Limited 160 94 Golden Ocean 1,035 3,593 Seadrill Limited 1,095 554 Flex LNG Ltd 344 391 Avance Gas 396 240 Other related parties 262 237 8,169 15,581 A summary of balances due to related parties as of June 30, 2020 and December 31, 2019 is as follows: (in thousands of $) 2020 2019 SFL 12,158 9,193 Seatankers Management Co. Ltd 5,056 4,037 Avance Gas 142 79 Flex LNG Ltd 772 636 Golden Ocean 1,773 6,241 19,901 20,186 See also Note 11, Note 13, Note 14 and Note 18 for details regarding related party transactions and balances. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Company insures the legal liability risks for its shipping activities with mutual protection and indemnity associations, who are members of the International Group of P&I Clubs. As a member of these mutual associations, the Company is subject to calls payable to the associations based on the Company's claims record in addition to the claims records of all other members of the associations. A contingent liability exists to the extent that the claims records of the members of the associations in the aggregate show significant deterioration, which result in additional calls on the members. As of June 30, 2020, the Company’s newbuilding program consisted of four LR2 tankers; two are expected to be delivered in January 2021 and February 2021, respectively, and two are expected to be delivered in August 2021. As of June 30, 2020, total instalments of $28.0 million had been paid in connection with the Company's current newbuilding program, and remaining commitments amounted to $161.1 million, of which we expect $18.7 million to be paid in 2020 and $142.4 million to be paid in 2021. As of June 30, 2020, the Company has remaining commitments for the installation of EGCS on 10 vessels owned by the Company, with a financial commitment of $3.7 million, excluding installation costs. These remaining commitments are due in 2020. As of June 30, 2020, the Company has remaining commitments for the installation of Ballast Water Treatment Systems on eight vessels, with a remaining commitment of $1.6 million, excluding installation costs, due in 2020. As of June 30, 2020, the Company had entered into forward bunker purchase arrangements for the delivery of 5,000 MT of bunker fuel per month for delivery between October 2020 to December 2021. The contracts oblige the Company to purchase and take delivery of the fixed quantity of physical fuel at prices between $325 per MT and $365 per MT. In addition, the Company has entered into a further arrangement for the delivery of 5,000 MT of bunker fuel per month for delivery between January 2021 to December 2021. The contract obliges the Company to purchase and take delivery of the physical fuel at $232 per MT. As of June 30, 2020, the Company has agreed to provide a $50.0 million guarantee in respect of the performance of its subsidiaries, and two subsidiaries of an affiliate of Hemen, under a bunker supply arrangement with TFG Marine. The Company may revoke the guarantee at any time giving 15 days notice, provided that the revocation will not terminate or limit the liability in respect of amounts incurred under the guarantee prior to the revocation. As of June 30, 2020 there are no amounts payable under this guarantee. In addition, should TFG Marine be required to provide a parent company guarantee to its bunker suppliers or finance providers then for any guarantee that is provided by the Trafigura Group and becomes payable Frontline shall pay a pro rata amount based on its share of the equity in TFG Marine. The maximum liability under this guarantee is $6.0 million and there are no amounts are payable under this guarantee as of June 30, 2020. See Note 13. for further details. The Company is a party, as plaintiff or defendant, to several lawsuits in various jurisdictions for unpaid charter hire, demurrage, damages, off-hire and other claims and commercial disputes arising from the operation of its vessels, in the ordinary course of business or in connection with its acquisition activities. The Company believes that the resolution of such claims will not have a material adverse effect on the Company's operations or financial condition individually and in the aggregate. |
TRAFIGURA TRANSACTION
TRAFIGURA TRANSACTION | 6 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
TRAFIGURA TRANSACTION | TRAFIGURA TRANSACTION In August 2019, the Company entered into a sale and purchase agreement with Trafigura to acquire 10 Suezmax tankers built in 2019 through the acquisition of a special purpose vehicle, which will hold the vessels (the "Acquisition"). The Acquisition has been accounted for as an asset acquisition rather than a business combination as substantially all of the fair value of the gross assets acquired on closing of the Acquisition is concentrated in the value of the vessels, being a group of similar identifiable assets. The Acquisition consideration consists of (i) 16,035,856 ordinary shares of Frontline at an agreed price per the SPA of $8.00 per share issuable upon signing; and (ii) a cash amount of $538.2 million, payable upon the closing of the Acquisition, which took place on March 16, 2020. Frontline agreed to time charter-in all the 10 vessels from Trafigura until the closing of the Acquisition at a daily rate of approximately $23,000. In addition, Frontline has agreed to charter-out five of the vessels to Trafigura for a period of three years at a daily base rate of $28,400 plus 50% profit share. Upon commencement of the charters for the five vessels, which the Company did not charter back to Trafigura, the Company concluded that the charter-in constituted a finance lease, due to the obligation to purchase the underlying asset, and recognized a right-of-use asset and finance lease obligation until closing of the Acquisition. The lease obligation for these vessels on signing of the agreement includes the scheduled charter payments and the cash amount to be paid on closing of $269.2 million, discounted using the rate implicit in the lease. On issuance of the shares on August 23, 2019, the Company initially recorded a prepaid expense of $63.5 million, based on the grant date fair value of the shares of $7.92 per share, which was subsequently adjusted to the right-of-use asset on commencement of the leases. The Company recognized a right-of-use asset of $336.0 million and a finance lease obligation of $272.0 million in respect of these vessels as of December 31, 2019. Depreciation of $6.3 million ($2.5 million in 2020) and finance lease interest expense of $6.1 million ($2.4 million in 2020) has been recognized up until March 16, 2020 in relation to these vessels. The weighted average discount rate for these finance leases is 4.36%. On closing of the Acquisition, the lease and purchase obligations were settled, and the right-of-use assets were transferred to vessels and equipment. For the five vessels chartered back to Trafigura, the Company determined that the charter-in of the vessels did not commence until closing of the Acquisition, as control of the right-of-use asset did not transfer to Frontline until then as a result of the lease back to Trafigura. The Company allocated 8,017,928 of the shares issued to the purchase consideration for these vessels, which was recognized as prepaid acquisition cost. The grant date fair value of these shares was $63.5 million, based on a share price of $7.92. In addition, the Company committed to pay a cash amount of $269.0 million on closing of the Acquisition. The net difference between the cash amounts paid and received on the charter-in and charter-out of these vessels has been treated as a reduction of the transaction price for all of the vessels. Accordingly, $17.0 million ($7.1 million in 2020) of receipts, net of payments, including accrued profit share due, has not been recognized in net income and has been treated as a reduction of the Acquisition cost of all of the vessels. Of this, $13.9 million ($5.7 million in 2020) has been offset against prepaid consideration and $3.1 million ($1.4 million in 2020) has been recorded under the finance lease obligations. On closing of the Acquisition, the purchase obligations were settled and the vessels were recognized on the balance sheet. In addition, the Company assessed that part of the consideration should be allocated to the time charters attached to the vessels as a result of the movement in the market value of these charters since signing of the SPA and up until the date of closing. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS In July 2020, the Company entered into a senior secured term loan facility with a number of banks in an amount of up to $328.6 million to refinance an existing loan facility maturing in December 2020. The new facility matures in February 2023, carries an interest rate of LIBOR plus a margin of 190 basis points and has an amortization profile of 18 years counting as from delivery date from yard. The facility was fully drawn down in July 2020 and $300.1 million of the refinanced facility has been recorded as long-term debt as of June 30, 2020. In August 2020, the Company obtained a financing commitment for a senior secured term loan facility in an amount of up to $133.7 million from CEXIM and Sinosure to partially finance the remaining cost of $161.1 million for four LR2 tankers under construction. The facility will have a tenor of 12 years, carry an interest rate of LIBOR plus a margin in line with the Company's other loan facilities and will have an amortization profile of 17 years. The facility is subject to final documentation. In August 2020, the Company declared a cash dividend of $0.50 per share for the second quarter of 2020. |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
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. |
New accounting pronouncements | ASU 2016-13 (ASC 326 Financial Instruments - Credit losses) The Company has adopted this update effective January 1, 2020 using the modified retrospective transition approach. 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. In may 2019, the FASB issued ASU No. 2019-05 Codification improvements to Financial instruments-Credit Losses, (Topic 326), which provides an option to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost basis. In April 2019, the FASB issued ASU No. 2019-04, Codification improvements to Financial instruments-Credit Losses, (Topic 326), which includes amendments related to the estimate of equity method losses. In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, which clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. The Company assesses allowances for its estimate of expected credit losses based on historical experience, other currently available evidence, and reasonable and supportable forecasts about the future, including the use of credit default ratings from third party providers of credit rating data. The Company assesses credit risk in relation to its non-operating lease receivables using a portfolio approach. The Company's main portfolio segments include (i) state-owned enterprises, (ii) oil majors, (iii) commodities traders and (iv) related parties. In addition, the Company performs individual assessments for customers that do not share risk characteristics with other customers (for example a customer under bankruptcy or a customer with known disputes or collectability issues). The Company makes significant judgements and assumptions to estimate its expected losses. Based on the Company's evaluation, these standard updates have not materially impacted its Condensed Consolidated Financial Statements on adoption or as of June 30, 2020. ASU 2017-04 (ASC 350 Intangibles - Goodwill) The Company has adopted this update effective January 1, 2020, which simplifies the test for goodwill impairment. The accounting update eliminates Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of the assets acquired and liabilities assumed in a business combination. Instead, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, however the loss recognized should not exceed the total amount of goodwill allocated to the reporting unit. The Company will apply the one step approach in our quantitative impairment assessments henceforth which may result in the recognition of impairment losses sooner as compared to the two-step impairment test. There has been no impact of this accounting standard on the Company’s Condensed Consolidated Financial Statements on adoption or as of June 30, 2020. ASU 2018-13 (ASC 820 Fair Value Measurement) The Company has adopted this update effective January 1, 2020, which removes, modifies and adds specific disclosure requirements in relation to fair value measurement with the aim of improving the effectiveness of disclosures to the financial statements. The standard update did not materially impact the Condensed Consolidated Financial Statements on adoption or as of June 30, 2020. ASU 2018-18 (ASC 808 Collaborative Arrangements) The Company has adopted this update effective January 1, 2020, which provides clarity on when transactions between entities in a collaborative arrangement should be accounted for under the new revenue standard, ASC 606. In determining whether transactions in collaborative arrangements should be accounted under the revenue standard, the update specifies that entities shall apply unit of account guidance to identify distinct goods or services and whether such goods and services are separately identifiable from other promises in the contract. The accounting update also precludes entities from presenting transactions with a collaborative partner which are not in scope of the new revenue standard together with revenue from contracts with customers. The standard update did not materially impact the Condensed Consolidated Financial Statements on adoption or as of June 30, 2020. In March 2020, the FASB issued ASU 2020-04 (ASC 848 Reference Rate Reform) , which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this update are elective and apply to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2022. We are currently evaluating the impact of electing the expedients and exceptions for applying GAAP provided by the update on our Condensed Consolidated Financial Statements. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares Outstanding | The components of the numerator and the denominator in the calculation of basic and diluted earnings per share are as follows for the six months ended June 30, 2020 and June 30, 2019: (in thousands of $) 2020 2019 Net income attributable to the Company 364,993 41,113 2020 2019 Weighted average number of shares (000s) 193,559 169,946 Dilutive effect of share options 142 — Dilutive effect of contingently returnable shares 4,106 — Denominator for diluted earnings per share 197,807 169,946 2020 2019 Cash dividends per share declared $ 1.10 $ 0.00 |
OPERATING REVENUES (Tables)
OPERATING REVENUES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Lease and Non-Lease Components of Revenue | The lease and non-lease components of our revenues in the six months ended June 30, 2020 were as follows: (in thousands of $) Lease Non-lease Total Time charter revenues 76,534 — 76,534 Voyage charter revenues 514,343 194,185 708,528 Other income — 13,842 13,842 Total 590,877 208,027 798,904 |
Schedule of Contract Assets | As of June 30, 2020 and December 31, 2019, the Company reported the following contract assets in relation to its contracts with customers, including those contracts containing lease components where the non-lease component was the predominant component and the revenues where therefore accounted for under ASC 606: (in thousands of $) 2020 2019 Voyages in progress 18,704 26,021 Trade accounts receivable 30,090 42,104 Related party receivables 4,044 9,137 Other current assets 1,607 4,491 Total 54,445 81,753 |
OTHER OPERATING GAINS (Tables)
OTHER OPERATING GAINS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Operating Income (Loss) [Abstract] | |
Other Operating Gains | Other operating gains for the six months ended June 30, 2020 and June 30, 2019 are as follows: (in thousands of $) 2020 2019 Gain on termination of vessel lease 7,409 — Gain on sale of vessel 12,354 — Gain on settlement of claim 3,422 — Gain on pool arrangements 766 681 Other gains 268 288 Other operating gains 24,219 969 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of marketable securities | A summary of the movements in our marketable securities for the six months ended June 30, 2020 and the year ended December 31, 2019 is presented in the table below: (in thousands of $) 2020 2019 Balance at beginning of period 3,642 836 Unrealized gain (loss) on marketable securities (4,542) 1,737 Repurchase of securities pledged to creditors 7,324 8,392 Marketable securities pledged to creditors (4,890) (7,323) Balance at end of period 1,534 3,642 |
NEWBUILDINGS (Tables)
NEWBUILDINGS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Newbuildings | Movements in the six months ended June 30, 2020 are summarized as follows; (in thousands of $) Balance at December 31, 2019 46,068 Additions, net 143,880 Interest capitalized 1,101 Transfer to Vessels and Equipment, net (162,221) Balance at June 30, 2020 28,828 |
VESSELS AND EQUIPMENT, NET (Tab
VESSELS AND EQUIPMENT, NET (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Movements in the six months ended June 30, 2020 are summarized as follows; (in thousands of $) Cost Accumulated Depreciation Net Carrying Value Balance at December 31, 2019 3,013,506 (433,601) 2,579,905 Depreciation — (59,443) Additions to vessels and equipment 663,500 — Transfers from Newbuildings 162,221 — Balance at June 30, 2020 3,839,227 (493,044) 3,346,183 |
VESSELS AND EQUIPMENT UNDER F_2
VESSELS AND EQUIPMENT UNDER FINANCE LEASE, NET (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Schedule of Finance Leased Assets | (in thousands of $) Cost Accumulated Depreciation Net Carrying Value Balance at December 31, 2019 484,065 (65,675) 418,390 Additions 45 — Lease termination (40,412) 20,682 Trafigura asset acquisition (339,818) 6,267 Depreciation — (7,282) Balance at June 30, 2020 103,880 (46,008) 57,872 |
Maturities of Finance Leases | The outstanding obligations under finance leases as of June 30, 2020 are payable as follows: (in thousands of $) Year 1 11,705 Year 2 10,946 Year 3 11,705 Year 4 11,737 Year 5 10,946 Thereafter 19,217 Minimum lease payments 76,256 Less: imputed interest (16,282) Present value of obligations under finance leases 59,974 The outstanding obligations under finance leases as of December 31, 2019 are payable as follows: (in thousands of $) 2020 291,964 2021 17,557 2022 16,419 2023 17,557 2024 16,468 Thereafter 25,920 Minimum lease payments 385,885 Less: imputed interest (25,975) Present value of obligations under finance leases 359,910 |
Lease Cost | The Company recognized the following income (expenses) in relation to the amortization of finance lease assets and obligations in the six months ended June 30, 2020 and June 30, 2019: (in thousands of $) June 30, 2020 June 30, 2019 Depreciation of vessels under finance leases (7,282) (5,967) Interest expense on obligations under finance leases (4,833) (3,552) Contingent rental income (expense) (8,270) 2,555 Gain on termination of vessel lease 7,409 — Total finance lease expense, net (12,976) (6,964) |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Operating Lease Maturity | The future minimum rental payments under the Company's non-cancellable operating leases as of June 30, 2020 are as follows: (in thousands of $) Year 1 11,291 Year 2 1,889 Year 3 1,775 Year 4 1,682 Year 5 1,661 Thereafter 501 Total minimum lease payments 18,799 Less: Imputed interest (1,049) Present value of operating lease liabilities 17,750 |
Schedule of Future Rental Income | The minimum future revenues to be received under our fixed rate contracts as of June 30, 2020 are as follows: (in thousands of $) Year 1 98,836 Year 2 51,830 Year 3 3,266 Year 4 — Year 5 — Thereafter — Total minimum lease payments 153,932 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of assets pledged | Assets pledged (in thousands of $) 2020 2019 Vessels and equipment, net 3,344,705 2,578,135 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of interest rate swaps not designated as hedges | The interest rate swaps are not designated as hedges and are summarized as of June 30, 2020 as follows: Notional Amount Inception Date Maturity Date Fixed Interest Rate ($000s) — June 2013 June 2020 1.4025 % 36,343 September 2013 September 2020 1.5035 % 61,998 December 2013 December 2020 1.6015 % 12,004 March 2014 March 2021 1.6998 % 12,347 June 2014 June 2021 1.7995 % 12,690 September 2014 September 2021 1.9070 % 150,000 February 2016 February 2026 2.1970 % 100,000 March 2020 March 2027 0.9750 % 50,000 March 2020 March 2027 0.6000 % 100,000 March 2020 March 2025 0.9000 % 100,000 April 2020 April 2027 0.5970 % 50,000 April 2020 April 2025 0.5000 % 685,382 |
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, 2020 and December 31, 2019 are as follows: 2020 2019 Carrying Fair Carrying Fair Assets: Cash and cash equivalents 224,720 224,720 174,223 174,223 Restricted cash 16,339 16,339 3,153 3,153 Liabilities: Floating rate debt 2,135,671 2,135,671 1,553,928 1,553,928 Fixed rate debt 65,169 64,894 147,413 146,225 |
Financial assets and liabilities measured at fair value on recurring basis | The estimated fair value of financial assets and liabilities as of June 30, 2020 are as follows: (in thousands of $) Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents 224,720 224,720 — — Restricted cash 16,339 16,339 — — Liabilities: Floating rate debt 2,135,671 — 2,135,671 — Fixed rate debt 64,894 — 5,169 59,725 The estimated fair value of financial assets and liabilities as of December 31, 2019 are as follows: (in thousands of $) Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents 174,223 174,223 — — Restricted cash 3,153 3,153 — — Liabilities: Floating rate debt 1,553,928 — 1,553,928 — Fixed rate debt 146,225 — 7,329 138,896 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of leasing transactions with related party | A summary of leasing transactions with SFL in the six months ended June 30, 2020 and June 30, 2019 are as follows; (in thousands of $) 2020 2019 Charter hire payable (principal and interest) 4,360 5,913 Lease interest expense 2,455 3,552 Contingent rental expense (income) 8,270 (2,555) Remaining lease obligation 59,974 93,322 |
Schedule of related party receivables and payables | A summary of net amounts earned from (paid to) related parties in the six months ended June 30, 2020 and June 30, 2019 are as follows: (in thousands of $) 2020 2019 Seatankers Management Co. Ltd 6,037 8,896 SFL 2,206 1,710 Golden Ocean 3,311 3,448 Flex LNG Ltd 635 510 Seatankers Management Norway AS (248) (270) Seadrill Limited 133 239 Archer Limited 225 193 Alta Trading UK Limited 23,558 — Avance Gas 335 87 Other related parties 76 83 Amounts earned from related parties comprise office rental income, technical and commercial management fees, newbuilding supervision fees, freights, corporate and administrative services income and interest income. Amounts paid to related parties comprise primarily rental for office space and the provision of other administrative services and guarantee fees. Related party balances A summary of balances due from related parties as of June 30, 2020 and December 31, 2019 is as follows: (in thousands of $) 2020 2019 SFL 3,012 4,982 Seatankers Management Co. Ltd 1,865 5,490 Archer Limited 160 94 Golden Ocean 1,035 3,593 Seadrill Limited 1,095 554 Flex LNG Ltd 344 391 Avance Gas 396 240 Other related parties 262 237 8,169 15,581 A summary of balances due to related parties as of June 30, 2020 and December 31, 2019 is as follows: (in thousands of $) 2020 2019 SFL 12,158 9,193 Seatankers Management Co. Ltd 5,056 4,037 Avance Gas 142 79 Flex LNG Ltd 772 636 Golden Ocean 1,773 6,241 19,901 20,186 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||
Net income attributable to the Company | $ 364,993 | $ 41,113 |
Weighted average number of shares (in shares) | 193,559 | 169,946 |
Dilutive effect of share options (in shares) | 142 | 0 |
Dilutive effect of contingently returnable shares (in shares) | 4,106 | 0 |
Denominator for diluted earnings per share (in shares) | 197,807 | 169,946 |
Dividends Payable, Amount Per Share | $ 1.10 | $ 0 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares | Aug. 23, 2019 | Aug. 31, 2019 | Jun. 30, 2020 |
Stock options | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive shares (in shares) | 141,753 | ||
Contingently returnable shares issued in asset acquisition | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Antidilutive shares (in shares) | 4,106,028 | ||
Trafigura | Assets Under Sale and Purchase Agreement | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Shares issued for purchase of vessels (in shares) | 16,035,856 | 16,035,856 |
OPERATING REVENUES - Disaggrega
OPERATING REVENUES - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Lease | $ 590,877 | |
Non-lease | 208,027 | |
Total revenues | 798,904 | $ 431,683 |
Time charter revenues | ||
Disaggregation of Revenue [Line Items] | ||
Lease | 76,534 | |
Non-lease | 0 | |
Total revenues | 76,534 | 19,404 |
Voyage charter revenues | ||
Disaggregation of Revenue [Line Items] | ||
Lease | 514,343 | |
Non-lease | 194,185 | |
Total revenues | 708,528 | 395,445 |
Other income | ||
Disaggregation of Revenue [Line Items] | ||
Lease | 0 | |
Non-lease | 13,842 | |
Total revenues | $ 13,842 | $ 16,350 |
OPERATING REVENUES - Narrative
OPERATING REVENUES - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Contract assets | $ 54,445 | $ 81,753 |
Balance Capitalized In Current Year | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Gross asset contract with customer | 2,300 | |
Amortization capitalized contract cost | 700 | |
Contract assets | 1,600 | |
Balance Capitalized In Prior Year | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Amortization capitalized contract cost | $ 4,500 |
OPERATING REVENUES - Contract A
OPERATING REVENUES - Contract Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Capitalized Contract Cost [Line Items] | ||
Contract assets | $ 54,445 | $ 81,753 |
Voyages in progress | ||
Capitalized Contract Cost [Line Items] | ||
Contract assets | 18,704 | 26,021 |
Trade accounts receivable | ||
Capitalized Contract Cost [Line Items] | ||
Contract assets | 30,090 | 42,104 |
Related party receivables | ||
Capitalized Contract Cost [Line Items] | ||
Contract assets | 4,044 | 9,137 |
Other current assets | ||
Capitalized Contract Cost [Line Items] | ||
Contract assets | $ 1,607 | $ 4,491 |
OTHER OPERATING GAINS (Details)
OTHER OPERATING GAINS (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Operating Income (Loss) [Abstract] | ||
Gain on termination of vessel lease | $ 7,409 | $ 0 |
Gain on sale of vessel | 12,354 | 0 |
Gain on settlement of claim | 3,422 | 0 |
Gain on pool arrangements | 766 | 681 |
Other gains | 268 | 288 |
Other operating gains | $ 24,219 | $ 969 |
OTHER OPERATING GAINS - Narrati
OTHER OPERATING GAINS - Narrative (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | ||
Apr. 30, 2020USD ($)vessel | Feb. 29, 2020USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Gain on sale of vessel | $ 12,354 | $ 0 | ||
Gain on pooling arrangements | 800 | 700 | ||
Gain on settlement of claims | 3,400 | |||
Gain on miscellaneous settlements | 300 | $ 300 | ||
Investment In Finance Lease | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Number of vessels sold | vessel | 1 | |||
Purchase price of asset sold | $ 25,500 | |||
Gain on sale of vessel | $ 12,400 | |||
SFL | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Contract termination receivable | $ 3,200 | |||
Gain (loss) on contract termination | $ 7,400 | $ 7,400 |
RESTRICTED CASH (Details)
RESTRICTED CASH (Details) $ in Millions | 6 Months Ended | ||||
Jun. 30, 2020USD ($) | Jun. 30, 2020 | Jun. 30, 2020Rate | Jun. 30, 2020vessel | Dec. 31, 2019USD ($)vessel | |
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Debt instrument, covenant compliance, cash required to be maintained | $ 106.1 | $ 38.3 | |||
Debt instrument, covenant compliance, cash required to be maintained, percentage | 100.00% | 50.00% | 50.00% | ||
Finance lease, number of leased assets | vessel | 2 | 3 | |||
Cash buffer per vessel, covenant compliance | 2 | ||||
SFL | |||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Finance lease, number of leased assets | vessel | 2 | ||||
Cash surplus required for vessel leasing agreements, covenant compliance | $ 9.3 | $ 13.1 |
MARKETABLE SECURITIES (Details)
MARKETABLE SECURITIES (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |||
Marketable Securities, beginning balance | $ 3,642 | $ 836 | $ 836 |
Unrealized gain (loss) on marketable securities | (4,542) | $ 302 | 1,737 |
Repurchase of securities pledged to creditors | 7,324 | 8,392 | |
Marketable securities pledged to creditors | (4,890) | (7,323) | |
Marketable Securities, ending balance | $ 1,534 | $ 3,642 |
MARKETABLE SECURITIES - Narrati
MARKETABLE SECURITIES - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | |
Avance Gas | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Unrealized loss on investments | $ 1.7 | |||
Number of marketable securities (in shares) | 400,000 | |||
SFL | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Unrealized loss on investments | $ 0.4 | |||
Marketable securities, number of shares held (in shares) | 100,000 | 100,000 | ||
Golden Ocean | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Unrealized loss on investments | $ 2.4 | |||
Number of marketable securities (in shares) | 1,270,657 | |||
Marketable securities, number of shares held (in shares) | 1,300,000 | 1,300,000 | ||
Marketable securities, number of securities disposed (in shares) | 1,260,358 | |||
Proceeds from sale and maturity of marketable securities | $ 5.3 | $ 3.7 | $ 7.2 | |
Forward contract, number of securities to be repurchased (in shares) | 1,300,000 | 1,300,000 | 1,300,000 | |
Secured debt, repurchase agreements | $ 5.3 | $ 3.7 | $ 7.2 | $ 5.3 |
Payments to acquire marketable securities | 1.6 | $ 3.5 | ||
Liability recorded within debt | $ 5.2 | $ 5.2 | ||
Number of marketable securities pledged to creditors (in shares) | 1,260,358 | 1,260,358 |
NEWBUILDINGS (Details)
NEWBUILDINGS (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Movement In Construction In Progress [Roll Forward] | |
Balance at December 31, 2019 | $ 46,068 |
Additions, net | 143,880 |
Interest capitalized | 1,101 |
Transfer to Vessels and Equipment, net | (162,221) |
Balance at June 30, 2020 | $ 28,828 |
NEWBUILDINGS - Narrative (Detai
NEWBUILDINGS - Narrative (Details) | 6 Months Ended | |
Jun. 30, 2020large_range_2_tankersuezmaxTankerVesselType | Jun. 30, 2020veryLargeCrudeCarrierlarge_range_2_tanker | |
Property, Plant and Equipment [Line Items] | ||
Number of newbuild vessels delivered | 1 | 1 |
Number of newbuild vessels | 4 | 4 |
August 2021 Delivery | ||
Property, Plant and Equipment [Line Items] | ||
Number of newbuild vessels | 2 | 2 |
January and February 2021 Delivery | ||
Property, Plant and Equipment [Line Items] | ||
Number of newbuild vessels | 2 | 2 |
VESSELS AND EQUIPMENT, NET (Det
VESSELS AND EQUIPMENT, NET (Details) $ in Thousands | Mar. 16, 2020USD ($) | Jun. 30, 2020USD ($)suezmaxTankerVesselType | Jun. 30, 2020USD ($)suezmaxTankerVesselType | Jun. 30, 2020USD ($)suezmaxTankerVesselTypeveryLargeCrudeCarrier | Jun. 30, 2020USD ($)vesselssuezmaxTankerVesselType | Dec. 31, 2019USD ($) | Aug. 31, 2019suezmaxTankerVesselType |
Movement in Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment [Roll Forward] | |||||||
Number of assets transferred from work in progress | 1 | 1 | |||||
Number of vessels with EGCs installed during the period | vessels | 1 | ||||||
Owned vessels | |||||||
Movement in Property, Plant and Equipment [Roll Forward] | |||||||
Vessels and equipment, gross, beginning balance | $ 3,013,506 | ||||||
Additions to vessels and equipment | 663,500 | ||||||
Transfers from Newbuildings | 162,221 | ||||||
Vessels and equipment, gross, ending balance | 3,839,227 | ||||||
Movement in Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment [Roll Forward] | |||||||
Accumulated depreciation, beginning balance | (433,601) | ||||||
Depreciation | (59,443) | ||||||
Accumulated depreciation, ending balance | (493,044) | ||||||
Vessels and equipment, net | $ 3,346,183 | $ 3,346,183 | $ 3,346,183 | $ 3,346,183 | $ 2,579,905 | ||
Assets Under Sale and Purchase Agreement | |||||||
Movement in Property, Plant and Equipment [Roll Forward] | |||||||
Transfers from Newbuildings | $ 651,800 | ||||||
Assets Under Sale and Purchase Agreement | Trafigura | |||||||
Movement in Property, Plant and Equipment [Roll Forward] | |||||||
Vessels and equipment, gross, ending balance | $ 663,700 | ||||||
Movement in Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment [Roll Forward] | |||||||
Number of assets agreed to acquire | suezmaxTankerVesselType | 10 | 10 | 10 | 10 | 10 |
VESSELS AND EQUIPMENT UNDER F_3
VESSELS AND EQUIPMENT UNDER FINANCE LEASE, NET - Narrative (Details) - vessel | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Finance lease, number of leased assets | 2 | 3 |
Finance lease, remaining lease term | 7 years | |
Weighted average discount rate (percent) | 7.50% | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease, remaining lease term | 0 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease, remaining lease term | 7 years |
VESSELS AND EQUIPMENT UNDER F_4
VESSELS AND EQUIPMENT UNDER FINANCE LEASE, NET - Finance Lease Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Cost | |||
Balance at December 31, 2019 | $ 484,065 | ||
Additions | 45 | ||
Lease termination | (40,412) | ||
Trafigura asset acquisition | (339,818) | ||
Balance at June 30, 2020 | 103,880 | ||
Accumulated Depreciation | |||
Balance at December 31, 2019 | (65,675) | ||
Lease termination | 20,682 | ||
Trafigura asset acquisition | 6,267 | ||
Depreciation | (7,282) | $ (5,967) | |
Balance at June 30, 2020 | (46,008) | ||
Net Carrying Value | $ 57,872 | $ 418,390 |
VESSELS AND EQUIPMENT UNDER F_5
VESSELS AND EQUIPMENT UNDER FINANCE LEASE, NET - Maturities of Finance Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2020 | $ 291,964 | |
Year 1 | $ 11,705 | |
Year 2 | 10,946 | 17,557 |
Year 3 | 11,705 | 16,419 |
Year 4 | 11,737 | 17,557 |
Year 5 | 10,946 | 16,468 |
Thereafter | 19,217 | 25,920 |
Minimum lease payments | 76,256 | 385,885 |
Less: imputed interest | (16,282) | (25,975) |
Present value of obligations under finance leases | $ 59,974 | $ 359,910 |
VESSELS AND EQUIPMENT UNDER F_6
VESSELS AND EQUIPMENT UNDER FINANCE LEASE, NET - Lease Cost (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Depreciation of vessels under finance leases | $ (7,282) | $ (5,967) |
Interest expense on obligations under finance leases | (4,833) | (3,552) |
Contingent rental income (expense) | (8,270) | 2,555 |
Gain on termination of vessel lease | 7,409 | 0 |
Total finance lease expense, net | $ (12,976) | $ (6,964) |
OPERATING LEASES - Narrative (D
OPERATING LEASES - Narrative (Details) $ in Thousands | 6 Months Ended | ||||||||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020vessel | Jun. 30, 2020 | Jun. 30, 2020large_range_2_tanker | Jun. 30, 2020veryLargeCrudeCarrier | Dec. 31, 2019large_range_2_tanker | Dec. 31, 2019suezmaxTankerVesselType | Jul. 31, 2018vessel | |
Lessee, Lease, Description [Line Items] | |||||||||
Number of leased assets | vessel | 2 | ||||||||
Lease term | 2 years | ||||||||
Lease expense | $ 12,976 | $ 6,964 | |||||||
Payments for operating leases | $ 5,700 | 5,200 | |||||||
Operating lease, weighted average discount rate | 3.80% | ||||||||
Operating lease, weighted average remaining lease term | 3 years | ||||||||
Vessels on fixed rate time charter | 1 | 2 | 1 | 1 | 2 | ||||
Property Subject to Operating Lease | |||||||||
Lessee, Lease, Description [Line Items] | |||||||||
Lease expense | $ 5,800 | 5,600 | |||||||
Ship operating expense | |||||||||
Lessee, Lease, Description [Line Items] | |||||||||
Lease expense | 3,300 | 3,300 | |||||||
Charter hire expense | |||||||||
Lessee, Lease, Description [Line Items] | |||||||||
Lease expense | 4,500 | 4,200 | |||||||
Administrative expense | |||||||||
Lessee, Lease, Description [Line Items] | |||||||||
Lease expense | $ 1,200 | $ 1,400 |
OPERATING LEASES - Maturities o
OPERATING LEASES - Maturities of Operating Leases (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Leases [Abstract] | |
Year 1 | $ 11,291 |
Year 2 | 1,889 |
Year 3 | 1,775 |
Year 4 | 1,682 |
Year 5 | 1,661 |
Thereafter | 501 |
Total minimum lease payments | 18,799 |
Less: Imputed interest | (1,049) |
Present value of operating lease liabilities | $ 17,750 |
OPERATING LEASES - Rental Incom
OPERATING LEASES - Rental Income (Details) | 1 Months Ended | 6 Months Ended | |||||||||
Aug. 31, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2020large_range_2_tanker | Jun. 30, 2020veryLargeCrudeCarrier | Jun. 30, 2020suezmaxTankerVesselType | Jun. 30, 2020 | Mar. 16, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019large_range_2_tanker | Dec. 31, 2019suezmaxTankerVesselType | Jul. 31, 2018vessel | |
Lessor, Lease, Description [Line Items] | |||||||||||
Vessels on fixed rate time charter | 1 | 2 | 1 | 1 | 2 | ||||||
Vessels on fixed rate time charter with profit sharing clause | suezmaxTankerVesselType | 2 | ||||||||||
Revenue on index linked time charters | $ 2,800,000 | ||||||||||
Trafigura | |||||||||||
Lessor, Lease, Description [Line Items] | |||||||||||
Time charter revenue, profit sharing | $ 6,300,000 | ||||||||||
Assets Under Sale and Purchase Agreement | Trafigura | |||||||||||
Lessor, Lease, Description [Line Items] | |||||||||||
Duration of time charter | 3 years | 3 years | |||||||||
Time charter, daily rate, revenue | $ 28,400 | $ 28,400 | |||||||||
Percentage of third party charter revenues to be received as profit share income | 50.00% | 50.00% | |||||||||
Vessels, gross | $ 663,700,000 | ||||||||||
Assets Under Sale and Purchase Agreement | Trafigura | Vessels Chartered To Trafigura | |||||||||||
Lessor, Lease, Description [Line Items] | |||||||||||
Vessels on fixed rate time charter | suezmaxTankerVesselType | 5 | 5 | |||||||||
Assets leased to others | |||||||||||
Lessor, Lease, Description [Line Items] | |||||||||||
Vessels, gross | 510,800,000 | $ 239,400,000 | |||||||||
Accumulated depreciation | $ 39,200,000 | $ 47,800,000 |
OPERATING LEASES - Rental Inc_2
OPERATING LEASES - Rental Income To Be Collected (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Leases [Abstract] | |
Year 1 | $ 98,836 |
Year 2 | 51,830 |
Year 3 | 3,266 |
Year 4 | 0 |
Year 5 | 0 |
Thereafter | 0 |
Total minimum lease payments | $ 153,932 |
INVESTMENT IN ASSOCIATED COMP_2
INVESTMENT IN ASSOCIATED COMPANY (Details) $ in Thousands | Jan. 23, 2020 | Jan. 31, 2020USD ($) | Jan. 31, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Oct. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | ||||||
Payments to acquire interest in affiliated company | $ 750 | $ 0 | ||||
Share of results of associated company | $ (1,427) | $ 842 | ||||
FMS Holdco | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership acquired | 34.70% | 28.90% | ||||
Payments to acquire interest in affiliated company | $ 800 | |||||
Share of results of associated company | $ (2,600) | |||||
Clean Marine | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership acquired | 17.34% | |||||
Additional ownership percentage purchased | 50.00% | |||||
TFG Marine | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Share of results of associated company | $ 1,100 | |||||
Joint venture, ownership interest | 0.15 | 0.15 | ||||
Shareholder loan | $ 1,500 |
DEBT (Details)
DEBT (Details) - USD ($) | 1 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | May 31, 2020 | Apr. 30, 2020 | Mar. 31, 2020 | Feb. 29, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||||||
Repayments of notes payable | $ 20,000,000 | ||||||
Long-term debt | $ 1,653,297,000 | $ 1,254,417,000 | |||||
Debt issuance costs, gross | 15,300,000 | 8,000,000 | |||||
Assets pledged [Abstract] | |||||||
Vessels and equipment, net | 3,344,705,000 | $ 2,578,135,000 | |||||
Golden Ocean | |||||||
Debt Instrument [Line Items] | |||||||
Marketable securities, number of securities disposed (in shares) | 1,260,358 | ||||||
Proceeds from sale and maturity of marketable securities | $ 5,300,000 | $ 3,700,000 | $ 7,200,000 | ||||
Forward contract, number of securities to be repurchased (in shares) | 1,300,000 | 1,300,000 | 1,300,000 | ||||
Secured debt, repurchase agreements | $ 5,300,000 | $ 3,700,000 | $ 7,200,000 | ||||
Payments to acquire marketable securities | 1,600,000 | 3,500,000 | |||||
Restricted debt securities | 5,200,000 | ||||||
Forecast | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from sale and maturity of marketable securities | $ 1,600,000 | ||||||
March 2020 Sale Leaseback Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Sale leaseback agreement, maximum amount | $ 544,000,000 | ||||||
Debt instrument, term | 7 years | ||||||
Interest rate amortization profile | 17 years 9 months 18 days | ||||||
March 2020 Sale Leaseback Agreement | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 2.30% | ||||||
Senior unsecured facility $275.0 million | |||||||
Debt Instrument [Line Items] | |||||||
Repayments of unsecured debt | $ 60,000,000 | ||||||
Maximum borrowing capacity | $ 275,000,000 | ||||||
Debt instrument, unused borrowing capacity, amount | $ 215,000,000 | ||||||
Nordea $50 million Facility | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate amortization profile | 20 years | ||||||
Maximum borrowing capacity | $ 50,000,000 | ||||||
Long-term debt | $ 39,000,000 | ||||||
Nordea $50 million Facility | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.90% | ||||||
Credit Suisse Senior Secured Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, term | 5 years | ||||||
Interest rate amortization profile | 18 years | ||||||
Proceeds from issuance of debt | $ 42,900,000 | ||||||
Credit Suisse Senior Secured Term Loan | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.90% | ||||||
Credit Agricole Senior Secured Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, term | 5 years | ||||||
Interest rate amortization profile | 18 years | ||||||
Proceeds from issuance of debt | $ 62,500,000 | ||||||
Credit Agricole Senior Secured Term Loan | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.90% |
SHARE CAPITAL (Detail)
SHARE CAPITAL (Detail) - USD ($) | 1 Months Ended | ||
Jan. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
SHARE CAPITAL [Abstract] | |||
Common stock, value authorized | $ 500,000,000 | ||
Common stock, shares authorized (in shares) | 500,000,000 | ||
Ordinary shares par value (in dollars per share) | $ 1 | $ 1 | |
Ordinary shares issued (in shares) | 197,692,321 | 196,894,321 | |
Stock issued during period (in shares) | 798,000 | ||
Shares issued, price per share (in dollars per share) | $ 7.30 |
FINANCIAL INSTRUMENTS - Narrati
FINANCIAL INSTRUMENTS - Narrative (Details) $ in Thousands | Mar. 16, 2020USD ($) | Feb. 27, 2013USD ($)instrumentnewbuild_option | Jun. 30, 2020USD ($)large_range_2_tanker | Jun. 30, 2019USD ($) | Apr. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2017USD ($) | Feb. 29, 2016USD ($) | Feb. 01, 2013vessel |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Number of newbuild vessels | large_range_2_tanker | 4 | ||||||||
Derivative, notional amount | $ 685,382 | ||||||||
Derivative liability | 25,700 | $ 4,300 | |||||||
Debt issuance costs, gross | 15,300 | 8,000 | |||||||
Assets Under Sale and Purchase Agreement | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Time charter liabilities, fair value disclosure | $ 11,900 | ||||||||
Property, plant and equipment, fair value disclosure | 663,700 | ||||||||
Fair value consideration | $ 651,800 | ||||||||
Interest rate swap | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Number of derivatives entered into | instrument | 6 | ||||||||
Principal amount of debt used in interest rate swaps | $ 260,000 | ||||||||
Derivative asset | 0 | $ 100 | |||||||
(Loss) gain on derivative | 21,700 | $ 9,700 | |||||||
Interest rate swap 7 | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative, notional amount | $ 150,000 | $ 150,000 | |||||||
DNB fixed rate swap | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative, notional amount | $ 250,000 | ||||||||
Nordea fixed rate swap | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative, notional amount | $ 150,000 | ||||||||
MR product tanker | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Number of newbuild vessels | vessel | 12 | ||||||||
MR tanker | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Number of newbuild vessels financed by term loan facility | newbuild_option | 6 | ||||||||
US Dollar denominated floating rate debt | Term loan facility $466.5 million | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Long-term debt | $ 466,500 |
FINANCIAL INSTRUMENTS - Summary
FINANCIAL INSTRUMENTS - Summary of interest rate swaps (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Feb. 29, 2016 |
Debt Instrument [Line Items] | ||
Derivative, notional amount | $ 685,382 | |
Interest rate swap 1 | ||
Debt Instrument [Line Items] | ||
Derivative, notional amount | $ 0 | |
Derivative, fixed interest rate (as a percent) | 1.4025% | |
Interest rate swap 2 | ||
Debt Instrument [Line Items] | ||
Derivative, notional amount | $ 36,343 | |
Derivative, fixed interest rate (as a percent) | 1.5035% | |
Interest rate swap 3 | ||
Debt Instrument [Line Items] | ||
Derivative, notional amount | $ 61,998 | |
Derivative, fixed interest rate (as a percent) | 1.6015% | |
Interest rate swap 4 | ||
Debt Instrument [Line Items] | ||
Derivative, notional amount | $ 12,004 | |
Derivative, fixed interest rate (as a percent) | 1.6998% | |
Interest rate swap 5 | ||
Debt Instrument [Line Items] | ||
Derivative, notional amount | $ 12,347 | |
Derivative, fixed interest rate (as a percent) | 1.7995% | |
Interest rate swap 6 | ||
Debt Instrument [Line Items] | ||
Derivative, notional amount | $ 12,690 | |
Derivative, fixed interest rate (as a percent) | 1.907% | |
Interest rate swap 7 | ||
Debt Instrument [Line Items] | ||
Derivative, notional amount | $ 150,000 | $ 150,000 |
Derivative, fixed interest rate (as a percent) | 2.197% | |
Interest rate swap 8 | ||
Debt Instrument [Line Items] | ||
Derivative, notional amount | $ 100,000 | |
Derivative, fixed interest rate (as a percent) | 0.975% | |
Interest rate swap 9 | ||
Debt Instrument [Line Items] | ||
Derivative, notional amount | $ 50,000 | |
Derivative, fixed interest rate (as a percent) | 0.60% | |
Interest rate swap 10 | ||
Debt Instrument [Line Items] | ||
Derivative, notional amount | $ 100,000 | |
Derivative, fixed interest rate (as a percent) | 0.90% | |
Interest rate swap 11 | ||
Debt Instrument [Line Items] | ||
Derivative, notional amount | $ 100,000 | |
Derivative, fixed interest rate (as a percent) | 0.597% | |
Interest rate swap 12 | ||
Debt Instrument [Line Items] | ||
Derivative, notional amount | $ 50,000 | |
Derivative, fixed interest rate (as a percent) | 0.50% |
FINANCIAL INSTRUMENTS - Carryin
FINANCIAL INSTRUMENTS - Carrying value and fair value (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Reported Value Measurement | ||
Assets: | ||
Cash and cash equivalents | $ 224,720 | $ 174,223 |
Restricted cash | 16,339 | 3,153 |
Liabilities: | ||
Floating rate debt | 2,135,671 | 1,553,928 |
Fixed rate debt | 65,169 | 147,413 |
Estimate of Fair Value Measurement | ||
Assets: | ||
Cash and cash equivalents | 224,720 | 174,223 |
Restricted cash | 16,339 | 3,153 |
Liabilities: | ||
Floating rate debt | 2,135,671 | 1,553,928 |
Fixed rate debt | $ 64,894 | $ 146,225 |
FINANCIAL INSTRUMENTS - Estimat
FINANCIAL INSTRUMENTS - Estimated fair value (Details) - Fair value, measurements, recurring - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Cash and cash equivalents | $ 224,720 | $ 174,223 |
Restricted cash | 16,339 | 3,153 |
Liabilities: | ||
Floating rate debt | 2,135,671 | 1,553,928 |
Fixed rate debt | 64,894 | 146,225 |
Fair Value, Inputs, Level 1 | ||
Assets: | ||
Cash and cash equivalents | 224,720 | 174,223 |
Restricted cash | 16,339 | 3,153 |
Liabilities: | ||
Floating rate debt | 0 | 0 |
Fixed rate debt | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Liabilities: | ||
Floating rate debt | 2,135,671 | 1,553,928 |
Fixed rate debt | 5,169 | 7,329 |
Fair Value, Inputs, Level 3 | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Liabilities: | ||
Floating rate debt | 0 | 0 |
Fixed rate debt | $ 59,725 | $ 138,896 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) | 1 Months Ended | 6 Months Ended | |||
Apr. 30, 2020USD ($) | Feb. 29, 2020USD ($) | Jan. 31, 2020USD ($) | Jun. 30, 2020USD ($)vesseltankernumberOfSubsidiaries | Jun. 30, 2019USD ($) | |
Related Party Transaction [Line Items] | |||||
Related party transaction costs | $ 16,100,000 | ||||
Due to related parties | 1,100,000 | ||||
TFG Marine | |||||
Related Party Transaction [Line Items] | |||||
Guarantee amount, subsidiary performance | $ 50,000,000 | ||||
TFG Marine | |||||
Related Party Transaction [Line Items] | |||||
Joint venture, ownership interest | 0.15 | 0.15 | |||
Shareholder loan | $ 1,500,000 | ||||
SFL | |||||
Related Party Transaction [Line Items] | |||||
Number of vessels under capital lease | vessel | 2 | ||||
Remaining periods on these leases, minimum (in years) | 7 years | ||||
Income from contract termination | $ 3,200,000 | ||||
Gain (loss) on contract termination | $ 7,400,000 | $ 7,400,000 | |||
Increase (decrease) in notes payable, related parties | 20,000,000 | ||||
Related party interest expense | 200,000 | $ 800,000 | |||
Profit share expense | 10,400,000 | 1,500,000 | |||
Lease obligation payable in excess of profit sharing expense | 8,300,000 | 2,600,000 | |||
Income/ expense on pooled vessels | 700,000 | 200,000 | |||
Related party transaction, amount | 2,206,000 | 1,710,000 | |||
Clean Marine | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, amount | 4,600,000 | ||||
TFG Marine | |||||
Related Party Transaction [Line Items] | |||||
Shareholder loan | 1,500,000 | ||||
Guarantee amount, subsidiary performance | $ 6,000,000 | ||||
Number of affiliate's subsidiaries covered by guarantee | numberOfSubsidiaries | 2 | ||||
Guarantee amount, current exposure | $ 0 | ||||
Other Affiliates Of Hemen | |||||
Related Party Transaction [Line Items] | |||||
Number of vessels chartered out | vessel | 7 | ||||
Revenue from related parties | $ 23,600,000 | ||||
Other Affiliates Of Hemen | Senior unsecured facility $275.0 million | |||||
Related Party Transaction [Line Items] | |||||
Related party interest expense | 2,800,000 | $ 5,100,000 | |||
Debt instrument, face amount | 275,000,000 | ||||
Debt Instrument, remaining borrowing capacity | $ 215,000,000 | ||||
Repayments of debt | $ 60,000,000 | ||||
Suezmax | SFL | |||||
Related Party Transaction [Line Items] | |||||
Number of vessels from Frontline 2012 involved in pooling arrangement | tanker | 2 | ||||
Vessels Owned By Others | SFL | |||||
Related Party Transaction [Line Items] | |||||
Number of vessels from Frontline 2012 involved in pooling arrangement | vessel | 2 | ||||
Installation Of EGCS On Vessels Owned | Feen Marine Scrubbers Inc. (FMSI) | |||||
Related Party Transaction [Line Items] | |||||
Number of vessels in related party transaction | vessel | 10 | ||||
Commitment to related party | $ 3,700,000 |
RELATED PARTY TRANSACTIONS - Le
RELATED PARTY TRANSACTIONS - Leasing transactions (Details) - SFL - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Related Party Transaction [Line Items] | ||
Charter hire payable (principal and interest) | $ 4,360 | $ 5,913 |
Lease interest expense | 2,455 | 3,552 |
Contingent rental expense (income) | 8,270 | (2,555) |
Remaining lease obligation | $ 59,974 | $ 93,322 |
RELATED PARTY TRANSACTIONS - Tr
RELATED PARTY TRANSACTIONS - Transactions with related parties (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Seatankers Management Co. Ltd | ||
Related Party Transaction [Line Items] | ||
Related party transaction, amount | $ 6,037 | $ 8,896 |
SFL | ||
Related Party Transaction [Line Items] | ||
Related party transaction, amount | 2,206 | 1,710 |
Golden Ocean | ||
Related Party Transaction [Line Items] | ||
Related party transaction, amount | 3,311 | 3,448 |
Flex LNG Ltd | ||
Related Party Transaction [Line Items] | ||
Related party transaction, amount | 635 | 510 |
Seatankers Management Norway AS | ||
Related Party Transaction [Line Items] | ||
Related party transaction, amount | (248) | (270) |
Seadrill Limited | ||
Related Party Transaction [Line Items] | ||
Related party transaction, amount | 133 | 239 |
Archer Limited | ||
Related Party Transaction [Line Items] | ||
Related party transaction, amount | 225 | 193 |
Alta Trading UK Limited | ||
Related Party Transaction [Line Items] | ||
Related party transaction, amount | 23,558 | 0 |
Avance Gas | ||
Related Party Transaction [Line Items] | ||
Related party transaction, amount | 335 | 87 |
Other related parties | ||
Related Party Transaction [Line Items] | ||
Related party transaction, amount | $ 76 | $ 83 |
RELATED PARTY TRANSACTIONS - Du
RELATED PARTY TRANSACTIONS - Due from related parties (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||
Related party receivables | $ 8,169 | $ 15,581 |
SFL | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 3,012 | 4,982 |
Seatankers Management Co. Ltd | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 1,865 | 5,490 |
Archer Limited | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 160 | 94 |
Golden Ocean | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 1,035 | 3,593 |
Seadrill Limited | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 1,095 | 554 |
Flex LNG Ltd | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 344 | 391 |
Avance Gas | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 396 | 240 |
Other related parties | ||
Related Party Transaction [Line Items] | ||
Related party receivables | $ 262 | $ 237 |
RELATED PARTY TRANSACTIONS - _2
RELATED PARTY TRANSACTIONS - Due to related parties (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||
Related party payables | $ 19,901 | $ 20,186 |
SFL | ||
Related Party Transaction [Line Items] | ||
Related party payables | 12,158 | 9,193 |
Seatankers Management Co. Ltd | ||
Related Party Transaction [Line Items] | ||
Related party payables | 5,056 | 4,037 |
Avance Gas | ||
Related Party Transaction [Line Items] | ||
Related party payables | 142 | 79 |
Flex LNG Ltd | ||
Related Party Transaction [Line Items] | ||
Related party payables | 772 | 636 |
Golden Ocean | ||
Related Party Transaction [Line Items] | ||
Related party payables | $ 1,773 | $ 6,241 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | 6 Months Ended |
Jun. 30, 2020USD ($)vessellarge_range_2_tankernumberOfMetricTonsnumberOfSubsidiaries$ / metricTon | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Number of newbuild vessels | large_range_2_tanker | 4 |
Installments and newbuilding supervision fees paid | $ 28,000,000 |
Remaining cost of vessels under construction | 161,100,000 |
Newbuilding installment commitments due in 2020 | 18,700,000 |
Newbuilding installment commitments due in 2021 | $ 142,400,000 |
Number of vessels with EGCS commitments | 10 |
EGCS commitments | $ 3,700,000 |
Number of vessels with BWTS commitments | vessel | 8 |
BWTS commitments | $ 1,600,000 |
Guarantee revocation period | 15 days |
Bunker Fuel Contract, October 2020 through December 2021 | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Purchase commitments, volume | numberOfMetricTons | 5,000 |
Bunker Fuel Contract, January 2021 through December 2021 | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Purchase commitments, volume | numberOfMetricTons | 5,000 |
Purchase commitment fixed price (in USD per MT) | $ / metricTon | 232 |
January and February 2021 Delivery | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Number of newbuild vessels | large_range_2_tanker | 2 |
August 2021 Delivery | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Number of newbuild vessels | large_range_2_tanker | 2 |
TFG Marine | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Guarantee amount, subsidiary performance | $ 6,000,000 |
Number of affiliate's subsidiaries covered by guarantee | numberOfSubsidiaries | 2 |
Guarantee amount, current exposure | $ 0 |
TFG Marine | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Guarantee amount, subsidiary performance | $ 50,000,000 |
Minimum | Bunker Fuel Contract, October 2020 through December 2021 | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Purchase commitment variable price (in USD per MT) | $ / metricTon | 325 |
Maximum | Bunker Fuel Contract, October 2020 through December 2021 | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |
Purchase commitment variable price (in USD per MT) | $ / metricTon | 365 |
TRAFIGURA TRANSACTION (Details)
TRAFIGURA TRANSACTION (Details) | Mar. 16, 2020USD ($) | Aug. 23, 2019USD ($)$ / sharesshares | Aug. 31, 2019USD ($)suezmaxTankerVesselTypevessel$ / sharesshares | Jun. 30, 2020USD ($)suezmaxTankerVesselType | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($)shares | Mar. 16, 2020USD ($) | Jun. 30, 2020vessel | Jun. 30, 2020suezmaxTankerVesselType | Jun. 30, 2020 | Jun. 30, 2020large_range_2_tanker | Jun. 30, 2020veryLargeCrudeCarrier | Jan. 31, 2020$ / shares | Dec. 31, 2019vessel | Dec. 31, 2019suezmaxTankerVesselType | Dec. 31, 2019 | Dec. 31, 2019large_range_2_tanker | Jul. 31, 2018vessel |
Business Acquisition [Line Items] | ||||||||||||||||||
Shares issued, price per share (in dollars per share) | $ / shares | $ 7.30 | |||||||||||||||||
Cash paid at closing | $ 533,748,000 | $ 0 | ||||||||||||||||
Finance lease, number of leased assets | vessel | 2 | 3 | ||||||||||||||||
Vessels and equipment under finance leases, net | 57,872,000 | $ 418,390,000 | ||||||||||||||||
Finance lease liability | 59,974,000 | 359,910,000 | ||||||||||||||||
Finance lease, amortization of right of use asset | 7,282,000 | 5,967,000 | ||||||||||||||||
Finance lease, interest expense | $ 4,833,000 | $ 3,552,000 | ||||||||||||||||
Weighted average discount rate (percent) | 7.50% | |||||||||||||||||
Vessels on fixed rate time charter | 1 | 2 | 1 | 1 | 2 | |||||||||||||
Assets Under Sale and Purchase Agreement | Vessels Chartered To Trafigura | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Number of vessels chartered out | suezmaxTankerVesselType | 5 | |||||||||||||||||
Assets Under Sale and Purchase Agreement | Trafigura | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Number of assets agreed to acquire | suezmaxTankerVesselType | 10 | 10 | ||||||||||||||||
Shares issued for purchase of vessels (in shares) | shares | 16,035,856 | 16,035,856 | ||||||||||||||||
Shares issued, price per share (in dollars per share) | $ / shares | $ 8 | |||||||||||||||||
Cash paid at closing | $ 538,200,000 | |||||||||||||||||
Time charter daily rate, expense | $ 23,000 | |||||||||||||||||
Number of vessels chartered out | vessel | 5 | |||||||||||||||||
Duration of time charter | 3 years | 3 years | ||||||||||||||||
Time charter, daily rate, revenue | $ 28,400 | $ 28,400 | ||||||||||||||||
Percentage of third party charter revenues to be received as profit share income | 50.00% | 50.00% | ||||||||||||||||
Shares issued as consideration for Trafigura acquisition | $ 127,000,000 | |||||||||||||||||
Purchase price adjustment | 13,900,000 | |||||||||||||||||
Time charter liability | 11,900,000 | $ 11,900,000 | ||||||||||||||||
Vessels, gross | 663,700,000 | 663,700,000 | ||||||||||||||||
Assets Under Sale and Purchase Agreement | Trafigura | Trafigura Vessels Not Chartered Out | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Cash paid at closing | $ 269,200,000 | |||||||||||||||||
Finance lease, number of leased assets | suezmaxTankerVesselType | 5 | |||||||||||||||||
Prepaid expense | $ 63,500,000 | |||||||||||||||||
Shares issued for purchase of assets, grant date fair value (in dollars per share) | $ / shares | $ 7.92 | |||||||||||||||||
Vessels and equipment under finance leases, net | 336,000,000 | |||||||||||||||||
Finance lease liability | $ 272,000,000 | |||||||||||||||||
Finance lease, amortization of right of use asset | 2,500,000 | 6,300,000 | ||||||||||||||||
Finance lease, interest expense | 2,400,000 | 6,100,000 | ||||||||||||||||
Weighted average discount rate (percent) | 4.36% | |||||||||||||||||
Assets Under Sale and Purchase Agreement | Trafigura | Vessels Chartered To Trafigura | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Shares issued for purchase of vessels (in shares) | shares | 8,017,928 | |||||||||||||||||
Cash paid at closing | $ 269,000,000 | |||||||||||||||||
Shares issued for purchase of assets, grant date fair value (in dollars per share) | $ / shares | $ 7.92 | |||||||||||||||||
Vessels on fixed rate time charter | suezmaxTankerVesselType | 5 | 5 | ||||||||||||||||
Shares issued as consideration for Trafigura acquisition | $ 63,500,000 | |||||||||||||||||
Time charter payments received | 7,100,000 | 17,000,000 | ||||||||||||||||
Time charter payments received offset against prepaid expense | 5,700,000 | 13,900,000 | ||||||||||||||||
Time charter payments received offset against lease liability | $ 1,400,000 | $ 3,100,000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 6 Months Ended | |
Aug. 28, 2020USD ($)large_range_2_tanker$ / shares | Jul. 31, 2020USD ($) | Jun. 30, 2020USD ($)large_range_2_tanker | |
Subsequent Event [Line Items] | |||
Remaining cost of vessels under construction | $ 161.1 | ||
Number of newbuild vessels | large_range_2_tanker | 4 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Remaining cost of vessels under construction | $ 161.1 | ||
Number of newbuild vessels | large_range_2_tanker | 4 | ||
Dividends declared (in USD per share) | $ / shares | $ 0.50 | ||
Senior Secured Term Loan Facility, $328.6 million | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Debt instrument, face amount | $ 328.6 | ||
Interest rate amortization profile | 18 years | ||
Senior Secured Term Loan Facility, $328.6 million | London Interbank Offered Rate (LIBOR) | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.90% | ||
Existing Loan Facility Due December 2020 | |||
Subsequent Event [Line Items] | |||
Long-term debt | $ 300.1 | ||
Senior Secured Term Loan Facility, $133.7 million | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Debt instrument, face amount | $ 133.7 | ||
Interest rate amortization profile | 17 years | ||
Debt instrument, term | 12 years |