Cover Page
Cover Page | 6 Months Ended |
Jun. 30, 2021 | |
Cover [Abstract] | |
Document Type | 6-K |
Document Period End Date | Jun. 30, 2021 |
Entity File Number | 001-16601 |
Entity Registrant Name | FRONTLINE LTD. |
Entity Address, Address Line One | Par-la-Ville Place |
Entity Address, Address Line Two | 14 Par-la-Ville Road |
Entity Address, City or Town | Hamilton |
Entity Address, Postal Zip Code | HM 08 |
Entity Address, Country | BM |
Entity Central Index Key | 0000913290 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Operating revenues | ||
Total operating revenues | $ 364,010 | $ 798,904 |
Other operating gains | 1,133 | 24,219 |
Voyage expenses and commissions | 176,941 | 209,263 |
Contingent rental (income) expense | (1,624) | 8,270 |
Ship operating expenses | 88,154 | 79,831 |
Charter hire expense | 2,593 | 4,454 |
Administrative expenses | 14,332 | 20,604 |
Depreciation | 71,734 | 66,725 |
Total operating expenses | 352,130 | 389,147 |
Net operating income | 13,013 | 433,976 |
Other income (expenses) | ||
Interest income | 84 | 597 |
Interest expense | (29,414) | (40,859) |
Gain (loss) on marketable securities | 7,915 | (4,542) |
Share of results of associated companies | (724) | (1,427) |
Foreign currency exchange loss | (17) | (1,129) |
Gain (loss) on derivatives | 10,989 | (21,746) |
Other non-operating items | 380 | 139 |
Net other expenses | (10,787) | (68,967) |
Net income before income taxes and non-controlling interest | 2,226 | 365,009 |
Income tax benefit | 38 | 47 |
Net income | 2,264 | 365,056 |
Net income attributable to non-controlling interest | 0 | (63) |
Net income attributable to the Company | $ 2,264 | $ 364,993 |
(Loss) earnings per share attributable to Frontline Ltd. stockholders: | ||
Basic earnings per share attributable to the company (in US dollars per share) | $ 0.01 | $ 1.89 |
Diluted earnings per share attributable to the company (in US dollars per share) | $ 0.01 | $ 1.85 |
Time charter revenues | ||
Operating revenues | ||
Total operating revenues | $ 42,111 | $ 76,534 |
Voyage charter revenues | ||
Operating revenues | ||
Total operating revenues | 313,917 | 708,528 |
Other income | ||
Operating revenues | ||
Total operating revenues | $ 7,982 | $ 13,842 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 2,264 | $ 365,056 |
Foreign currency translation loss | (26) | (36) |
Other comprehensive loss | (26) | (36) |
Comprehensive income | 2,238 | 365,020 |
Comprehensive income attributable to non-controlling interest | 0 | 63 |
Comprehensive income attributable to the Company | $ 2,238 | $ 364,957 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 140,361 | $ 174,721 |
Restricted cash | 1,140 | 14,928 |
Marketable securities | 2,673 | 2,639 |
Marketable securities pledged to creditors | 0 | 5,835 |
Trade accounts receivable, net | 46,199 | 40,974 |
Related party receivables | 14,629 | 13,255 |
Other receivables | 14,268 | 22,950 |
Inventories | 73,589 | 57,858 |
Voyages in progress | 26,601 | 34,705 |
Prepaid expenses and accrued income | 8,771 | 7,725 |
Other current assets | 3,419 | 2,729 |
Total current assets | 331,650 | 378,319 |
Long-term assets | ||
Newbuildings | 131,174 | 48,498 |
Vessels and equipment, net | 3,340,987 | 3,307,144 |
Vessels and equipment under finance leases, net | 49,234 | 53,518 |
Right-of-use assets under operating leases | 4,527 | 8,426 |
Investment in associated company | 555 | 1,279 |
Goodwill | 112,452 | 112,452 |
Loan notes receivable | 1,388 | 1,388 |
Long-term derivative instruments receivable | 4,557 | 0 |
Other long-term assets | 5,058 | 7,197 |
Total assets | 3,981,582 | 3,918,221 |
Current liabilities | ||
Short-term debt and current portion of long-term debt | 326,462 | 167,082 |
Current portion of obligations under finance leases | 7,329 | 7,810 |
Current portion of obligations under operating leases | 1,173 | 4,548 |
Related party payables | 29,259 | 19,853 |
Trade accounts payable | 5,634 | 7,860 |
Accrued expenses | 36,952 | 42,529 |
Derivative instruments payable | 9,972 | 19,261 |
Other current liabilities | 9,898 | 12,418 |
Total current liabilities | 426,679 | 281,361 |
Long-term debt | 1,891,438 | 1,968,924 |
Obligations under finance leases | 45,115 | 48,467 |
Obligations under operating leases | 3,662 | 4,177 |
Other long-term liabilities | 1,235 | 3,739 |
Total liabilities | 2,368,129 | 2,306,668 |
Commitments and contingencies | ||
Equity | ||
Share capital (197,692,321 shares. 2020: 197,692,321. Par value $1.00) | 197,692 | 197,692 |
Additional paid in capital | 401,683 | 402,021 |
Contributed surplus | 1,004,094 | 1,004,094 |
Accumulated other comprehensive income | 174 | 200 |
Retained earnings | 10,282 | 8,018 |
Total equity attributable to the Company | 1,613,925 | 1,612,025 |
Non-controlling interest | (472) | (472) |
Total equity | 1,613,453 | 1,611,553 |
Total liabilities and equity | $ 3,981,582 | $ 3,918,221 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Equity | ||
Share capital, shares outstanding (in shares) | 197,692,321 | 197,692,321 |
Par value (in dollars per share) | $ 1 | $ 1 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Statement of Cash Flows [Abstract] | ||||
Net cash provided by operating activities | $ 41,217 | $ 445,508 | ||
Investing activities | ||||
Additions to newbuildings, vessels and equipment | $ (180,000) | (181,980) | (152,846) | |
Marketable securities acquired | (357) | 0 | $ 0 | |
Investment in associated company | 0 | (750) | ||
Net proceeds from sale of vessel | 0 | 26,556 | ||
Cash inflow from sale of subsidiary | 2,813 | 0 | ||
Cash outflow on issuance of loan to associated company | 0 | (1,500) | ||
Trafigura asset acquisition | 0 | (533,748) | ||
Proceeds from sale of marketable securities | 14,074 | 0 | 0 | |
Net cash used in investing activities | (165,450) | (662,288) | ||
Financing activities | ||||
Proceeds from issuance of debt | 172,024 | 650,273 | ||
Repayment of long-term debt | (90,623) | (149,732) | ||
Repayment of finance leases | (3,199) | (7,984) | ||
Net proceeds from issuance of shares | 0 | 5,825 | ||
Lease termination compensation receipt | 0 | 3,186 | ||
Debt fees paid | (2,117) | (6,074) | ||
Dividends paid | 0 | (215,031) | ||
Net cash provided by financing activities | 76,085 | 280,463 | ||
Net change in cash and cash equivalents and restricted cash | (48,148) | 63,683 | ||
Cash and cash equivalents and restricted cash at beginning of period | 189,649 | 177,376 | 177,376 | |
Cash and cash equivalents and restricted cash at end of period | $ 141,501 | $ 141,501 | $ 241,059 | $ 189,649 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Total equity attributable to the Company | Share capital | Additional paid in capital | Contributed surplus | Accumulated other comprehensive income | Retained earnings (deficit) | Non-controlling interest |
Balance at the beginning of the period (in shares) at Dec. 31, 2019 | 196,894,321 | |||||||
Increase (decrease) in Equity [Roll Forward] | ||||||||
Shares issued on exercise of options (in shares) | 798,000 | |||||||
Balance at the end of the period (in shares) at Jun. 30, 2020 | 197,692,321 | |||||||
Balance at beginning of the period at Dec. 31, 2019 | $ 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) | |||||||
Cash dividend | (66,594) | (148,437) | ||||||
Other comprehensive loss | $ (36) | (36) | ||||||
Net income | 365,056 | 364,993 | 63 | |||||
Balance at end of the period at Jun. 30, 2020 | $ 1,665,806 | $ 1,665,511 | $ 197,692 | 402,021 | 1,004,094 | 294 | 61,410 | 295 |
Balance at the beginning of the period (in shares) at Dec. 31, 2020 | 197,692,321 | 197,692,321 | ||||||
Increase (decrease) in Equity [Roll Forward] | ||||||||
Shares issued on exercise of options (in shares) | 0 | |||||||
Balance at the end of the period (in shares) at Jun. 30, 2021 | 197,692,321 | 197,692,321 | ||||||
Balance at beginning of the period at Dec. 31, 2020 | $ 1,611,553 | $ 197,692 | 402,021 | 1,004,094 | 200 | 8,018 | (472) | |
Increase (decrease) in Equity [Roll Forward] | ||||||||
Shares issued on exercise of options | 0 | 0 | ||||||
Stock compensation expense | (338) | |||||||
Cash dividend | 0 | 0 | ||||||
Other comprehensive loss | (26) | (26) | ||||||
Net income | 2,264 | 2,264 | 0 | |||||
Balance at end of the period at Jun. 30, 2021 | $ 1,613,453 | $ 1,613,925 | $ 197,692 | $ 401,683 | $ 1,004,094 | $ 174 | $ 10,282 | $ (472) |
INTERIM FINANCIAL DATA
INTERIM FINANCIAL DATA | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
INTERIM FINANCIAL DATA | INTERIM FINANCIAL DATAThe Unaudited Condensed Consolidated Interim Financial Statements of Frontline Ltd. (“Frontline” or the “Company”) have been prepared on the same basis as the Company’s Audited Consolidated Financial Statements, except as noted below in Note 2, and, in the opinion of management, include all material adjustments, consisting only of normal recurring adjustments considered necessary for a fair statement of the Company's financial statements, in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). The Unaudited Condensed Consolidated Interim Financial Statements should be read in conjunction with the Annual Consolidated Financial Statements and accompanying Notes included in the Annual Report on Form 20-F for the year ended December 31, 2020, filed with the Securities and Exchange Commission on March 18, 2021. The Unaudited Condensed Consolidated Interim Financial Statements do not include all the disclosures required by US GAAP. The results of operations for the interim period ended June 30, 2021 are not necessarily indicative of the results for the year ending December 31, 2021. The year-end Condensed Consolidated Balance Sheet was derived from audited financial information, but does not include all disclosures required by US GAAP. |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
ACCOUNTING POLICIES | ACCOUNTING POLICIES Basis of accounting The Unaudited Condensed Consolidated Interim Financial Statements are prepared in accordance with US GAAP. The Unaudited Condensed Consolidated Interim Financial Statements include the assets and liabilities of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated on consolidation. The Unaudited Condensed Consolidated Interim Financial Statements are prepared in accordance with the accounting policies, which are described in the Company's Annual Report on Form 20-F for the year ended December 31, 2020, which was filed with the Securities and Exchange Commission on March 18, 2021. |
RECENT ACCOUNTING PRONOUNCMENTS
RECENT ACCOUNTING PRONOUNCMENTS | 6 Months Ended |
Jun. 30, 2021 | |
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. In January 2021, the FASB issued ASU 2021-01, which clarified the scope of Topic 848 in relation to derivative instruments and contract modifications. The amendments in these updates are elective and apply to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in these updates are effective for all entities as of March 12, 2020 through December 31, 2022. The Company has determined that reference rate reforms will primarily impact its floating rate debt facilities and the interest rate derivatives to which it is a party. We expect to take advantage of the expedients and exceptions for applying GAAP provided by the updates when reference rates currently in use are discontinued and replaced with alternative reference rates. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The components of the numerator and the denominator in the calculation of basic and diluted earnings per share are as follows for the six months ended June 30, 2021 and June 30, 2020: (in thousands of $) 2021 2020 Net income attributable to the Company 2,264 364,993 (in thousands) 2021 2020 Weighted average number of shares 197,692 193,559 Dilutive effect of share options 106 142 Dilutive effect of contingently returnable shares — 4,106 Denominator for diluted earnings per share 197,798 197,807 2021 2020 Cash dividends per share declared — $ 1.10 The impact of stock options using the treasury stock method was dilutive in the six months ended June 30, 2021 as the exercise price was lower than the average share price during the period and, therefore, 105,541 options were included in the denominator in the calculation of diluted earnings per share. |
OPERATING REVENUES
OPERATING REVENUES | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
OPERATING REVENUES | OPERATING REVENUES Certain of our voyage charter contracts contain a lease. Voyage charters contain a lease component if the contract (i) specifies a specific vessel asset; and (ii) has terms that allow the charterer to exercise substantive decision-making rights, which have an economic value to the charterer and therefore allow the charterer to direct how and for what purpose the vessel is used. Voyage charter revenues and expenses are recognized ratably over the estimated length of each voyage, which the Company has assessed commence on loading of the cargo. ASC 842 Leases provides a practical expedient for lessors in which the lessor may elect, by class of underlying asset, to not separate non-lease components from the associated lease component and, instead, to account for these components as a single component if both of the following are met: (1) the timing and pattern of transfer of the non-lease component(s) and associated lease component are the same and (2) the lease component, if accounted for separately, would be classified as an operating lease. When a lessor, we have elected this expedient for our time charter contracts and voyage charter contracts that qualify as leases and thus do not separate the non-lease component, or service element, from the lease. Furthermore, ASC 842 Leases requires the Company to account for the combined component in accordance with ASC 606 Revenues from contracts with customers if the non-lease components are the predominant components. The Company has assessed that the lease components were the predominant component for all of its time charter contracts. Furthermore, for certain of its voyage charter contracts the lease components were the predominant components. The lease and non-lease components of our revenues in the six months ended June 30, 2021 were as follows: (in thousands of $) Lease Non-lease Total Time charter revenues 42,111 — 42,111 Voyage charter revenues 23,433 290,484 313,917 Other income — 7,982 7,982 Total 65,544 298,466 364,010 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. $5.2 million of contract assets were capitalized in the period ended June 30, 2021 as "Other current assets", of which $1.9 million was amortized up to June 30, 2021, leaving a remaining balance of $3.3 million as of June 30, 2021. $2.5 million of contract assets were amortized in the six months ended June 30, 2021 in relation to voyages in progress at the end of December 31, 2020. No impairment losses were recognized in the period. As of June 30, 2021 and December 31, 2020, the Company reported the following contract assets in relation to its contracts with customers, including those contracts containing lease components where the non-lease component was the predominant component and the revenues where therefore accounted for under ASC 606: (in thousands of $) 2021 2020 Voyages in progress 26,601 27,621 Trade accounts receivable 42,745 25,615 Related party receivables 9,509 7,195 Other current assets 3,337 2,527 Total 82,192 62,958 |
OTHER OPERATING GAINS
OTHER OPERATING GAINS | 6 Months Ended |
Jun. 30, 2021 | |
Operating Income (Loss) [Abstract] | |
OTHER OPERATING GAINS | OTHER OPERATING GAINS Other operating gains for the six months ended June 30, 2021 and June 30, 2020 are as follows: (in thousands of $) 2021 2020 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 1,048 766 Other gains 85 268 Other operating gains 1,133 24,219 In February 2020, the Company agreed with SFL to terminate the long-term charter for the 2002-built VLCC Front Hakata upon the sale and delivery of the vessel by SFL to an unrelated third party. Frontline received a compensation payment of $3.2 million from SFL for the termination of the current charter and recognized a gain on termination of $7.4 million. The charter with SFL terminated in February 2020. In March 2020, the Company recorded a $3.4 million gain on settlement of a claim. In April, 2020, the Company sold one VLCC previously recorded as an investment in finance lease at a purchase price of $25.5 million. The vessel was delivered to its buyers in June 2020 and the Company recorded a gain on sale of $12.4 million. In the six months ended June 30, 2021, the Company recorded a gain on pool arrangements of $1.0 million (2020: gain of $0.8 million) and a further $0.1 million (2020: $0.3 million) in relation to other miscellaneous settlements. |
RESTRICTED CASH
RESTRICTED CASH | 6 Months Ended |
Jun. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
RESTRICTED CASH | RESTRICTED CASHRestricted cash consists of cash, which may only be used for certain purposes and is held under a contractual arrangement. Restricted cash as of June 30, 2021 does not include cash balances of $102.8 million (December 2020: $103.5 million), which represents 100% (December 2020: 100%) of the cash required to be maintained by the financial covenants in our loan agreements. The Company is permitted to satisfy up to 50% of the cash requirement by maintaining a committed undrawn credit facility with a remaining availability of greater than 12 months. The Company did not satisfy any of the minimum cash requirement with a committed undrawn credit facility as of June 30, 2021 because the Company's senior unsecured facility agreement with an affiliate of Hemen, is repayable in May 2022. Furthermore, FSL, the chartering counterparty with SFL with respect to the remaining two VLCCs leased from them, has agreed to certain dividend restrictions as a result of the amendment of the terms of the long-term charter agreements in May 2015. In order to make or pay any dividend or other distribution to the Company, FSL shall demonstrate a cash buffer of $2.0 million per vessel both prior to and following such payment, and following payment of the next monthly hire due plus any profit share accrued under the agreement. As of June 30, 2021, the cash held by FSL was $5.3 million (December 31, 2020: $15.6 million), and these cash amounts are included in "Cash and cash equivalents". Our interest rate swaps require us to post cash as collateral based on their fair value. As at June 30, 2021, the restricted cash balance included $1.1 million (D ecember 31, 2020: $13.4 million) in relation to our interest rate swaps. See Note 15 for additional information on our interest rate swaps. |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
MARKETABLE SECURITIES | MARKETABLE SECURITIES A summary of the movements in marketable securities for the six months ended June 30, 2021 and the year ended December 31, 2020 is presented in the table below: (in thousands of $) 2021 2020 Balance at beginning of period 2,639 3,642 Marketable securities acquired 357 — Proceeds from sale of marketable securities (14,074) — Unrealized gain (loss) on marketable securities held at period end 34 (2,491) Gain on sale of marketable securities 7,881 — Repurchase of marketable securities pledged to creditors 5,836 7,323 Marketable securities pledged to creditors — (5,835) Balance at end of period 2,673 2,639 Avance Gas In the six months ended June 30, 2021, the Company recognized an unrealized loss of $0.1 million in relation to the 0.4 million shares held in Avance Gas Holdings Ltd ("Avance Gas"). SFL In the six months ended June 30, 2021, the Company recognized an unrealized gain of $0.1 million in relation to the 0.1 million shares held in SFL. Golden Ocean As of December 31, 2020, the Company held 1,270,657 shares of Golden Ocean, of which 1,260,358 were held as marketable securities pledged to creditors ("the shares"). In December 2020, the Company entered into a forward contract to repurchase the shares in March 2021 for $6.2 million. In March 2021, the Company repurchased the Golden Ocean shares and subsequently sold them for proceeds of $9.8 million. Simultaneously, the Company entered into a forward contract to repurchase the shares in June 2021 for $9.8 million and received net cash proceeds of $3.6 million in connection therewith, after adjustment for foreign exchange differences. The net cash proceeds were treated as a drawdown of deb t in the Condensed Consolidated Statement of Cash Flows. In June 2021, the Company repurchased the Golden Ocean shares and subsequently sold them for proceeds of $13.4 million. The repurchase of the shares for $9.8 million was treated as a settlement of debt in the Condensed Consolidated Statement of Cash Flows. In the six months ended June 30, 2021, the Company recognized a gain on marketable securities sold of $7.6 million in relation to the Golden Ocean shares. In April 2021, the Company purchased 55,959 Golden Ocean shares in connection with the exercise of subscription rights in the subsequent offering for $0.4 million. In June 2021, the Company sold these shares for proceeds of $0.7 million, resulting in a gain on marketable securities sold of $0.3 million in the six months ended June 30, 2021. In the six months ended June 30, 2021, the Company recognized an unrealized gain of $0.1 million in relation to the 10,299 shares in Golden Ocean still held as of June 30, 2021, none of which were held as marketable securities pledged to creditors as of this date. |
NEWBUILDINGS
NEWBUILDINGS | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
NEWBUILDINGS | NEWBUILDINGS Movements in the six months ended June 30, 2021 are summarized as follows; (in thousands of $) Balance at December 31, 2020 48,498 Additions, net 178,715 Interest capitalized 644 Transfer to Vessels and Equipment, net (96,683) Balance at June 30, 2021 131,174 In the six months ended June 30, 2021, the Company took delivery of two LR2 tanker, Front Fusion and Front Future , from SWS . As of June 30, 2021, the Company’s newbuilding program consisted of two LR2 tankers which are expected to be delivered in September 2021 and November 2021, respectively, and six VLCCs which are expected to be delivered during 2022 starting in Q1. |
VESSELS AND EQUIPMENT, NET
VESSELS AND EQUIPMENT, NET | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
VESSELS AND EQUIPMENT, NET | VESSELS AND EQUIPMENT, NET Movements in the six months ended June 30, 2021 are summarized as follows; (in thousands of $) Cost Accumulated Depreciation Net Carrying Value Balance at December 31, 2020 3,867,871 (560,727) 3,307,144 Depreciation (67,451) Additions to vessels and equipment 4,611 Transfers from Newbuildings 96,683 Balance at June 30, 2021 3,969,165 (628,178) 3,340,987 In the six months ended June 30, 2021, the Company took delivery of two LR2 tankers, Front Fusion and Front Future, from SWS. The Company also completed the installation of EGCSs on one vessel during the period. |
VESSELS AND EQUIPMENT UNDER FIN
VESSELS AND EQUIPMENT UNDER FINANCE LEASE, NET | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
VESSELS AND EQUIPMENT UNDER FINANCE LEASE, NET | VESSELS AND EQUIPMENT UNDER FINANCE LEASE, NET As of June 30, 2021, the Company leased in two vessels on long-term time charter from SFL (December 2020: two vessels) which are classified as finance leases. (in thousands of $) Cost Accumulated Depreciation Net Carrying Value Balance at December 31, 2020 103,888 (50,370) 53,518 Depreciation — (4,283) — Balance at June 30, 2021 103,888 (54,653) 49,235 The outstanding obligations under finance leases as of June 30, 2021 are payable as follows: (in thousands of $) Year 1 10,946 Year 2 11,705 Year 3 11,737 Year 4 10,946 Year 5 11,706 Thereafter 7,512 Minimum lease payments 64,552 Less: imputed interest (12,108) Present value of obligations under finance leases 52,444 The outstanding obligations under finance leases as of December 31, 2020 are payable as follows: (in thousands of $) 2021 11,705 2022 10,946 2023 11,705 2024 10,978 2025 11,705 Thereafter 13,347 Minimum lease payments 70,386 Less: imputed interest (14,109) Present value of obligations under finance leases 56,277 The Company recognized the following income (expenses) in relation to the amortization of finance lease assets and obligations in the six months ended June 30, 2021 and June 30, 2020: (in thousands of $) June 30, 2021 June 30, 2020 Depreciation of vessels under finance leases (4,283) (7,282) Interest expense on obligations under finance leases (2,002) (4,833) Contingent rental income (expense) 1,624 (8,270) Gain on termination of vessel lease — 7,409 Total finance lease expense, net (4,661) (12,976) |
OPERATING LEASES
OPERATING LEASES | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
OPERATING LEASES | OPERATING LEASES In the six months ended June 30, 2021, the Company redelivered two VLCCs to an unrelated third party at the end of the charter-in agreement that were previously classified as operating leases. The Company has allocated the consideration due under the leases between the lease and non-lease components based upon the estimated standalone price of the services provided by the owner of the vessels, which include the provision of crewing, vessel insurance, repairs and maintenance and lubes. In the six months ended June 30, 2021, the Company has recorded the non-lease component of $1.7 million ($3.3 million in the six months ended June 30, 2020) within ship operating expenses and has recognized the lease component of $2.6 million ($4.5 million in the six months ended June 30, 2020) within charter hire expense within the Condensed Consolidated Statement of Operations. Furthermore, the Company is committed to make rental payments under operating leases for office premises. Certain of these leases include variable lease elements linked to inflation indices. Such variable payments were estimated on the date of adoption of ASC 842 based on the index at that time and included in the minimum lease payments. In the six months ended June 30, 2021, lease expense of $0.9 million ($1.2 million in the six months ended June 30, 2020) was recorded in Administrative expenses in the Condensed Consolidated Statement of Operations. Rental expense The future minimum rental payments under the Company's non-cancellable operating leases as of June 30, 2021 are as follows: (in thousands of $) Year 1 1,260 Year 2 1,156 Year 3 1,094 Year 4 1,123 Year 5 568 Thereafter — Total minimum lease payments 5,201 Less: Imputed interest (366) Present value of operating lease liabilities 4,835 The future minimum rental payments under the Company's non-cancellable operating leases as of December 31, 2020 are as follows: (in thousands of $) 2021 4,705 2022 1,182 2023 1,078 2024 1,107 2025 1,137 Thereafter — Total minimum lease payments 9,209 Less: Imputed interest (484) Present value of operating lease liabilities 8,725 Total expense for operating leases was $3.5 million in the six months ended June 30, 2021 (2020: $5.8 million). Total cash paid in respect of operating leases was $3.5 million in the six months ended June 30, 2021 (2020: $5.7 million). The weighted average discount in relation to the operating leases was 3.3% for the six months ended June 30, 2021 (2020: 3.8%) and the weighted average lease term was four years (2020: three years) for the six months ended June 30, 2021. Rental income One LR2 tanker and two VLCCs were on fixed rate time charters of December 31, 2020, the terms of which all ended in the six months ended June 30, 2021. In addition, Frontline has chartered-out five vessels to Trafigura, for a period of three years commencing in August 2019, at a daily base rate of $28,400 plus 50% profit share. The minimum future revenues to be received under our fixed rate contracts as of June 30, 2021 are as follows: (in thousands of $) Year 1 26,128 Year 2 28,968 Year 3 — Year 4 — Year 5 — Thereafter — Total minimum lease payments 55,096 Profit share to be earned under our chartering arrangements has been excluded from the minimum future revenues above. Our revenues from these leases have been included within time charter revenues in the Condensed Consolidated Statement of Operations, which solely relates to leasing revenues. There are no options to extend our operating leases where we are the lessor. The cost and accumulated depreciation of vessels leased to third parties as of June 30, 2021 were $328.0 million and $15.1 million, respectively, and as of December 31, 2020 were $509.5 million and $49.4 million, respectively. Contingent rental income In the six months ended June 30, 2021, the Company recognized profit share income of nil in relation to the five time charters to Trafigura (2020: $6.3 million). |
OPERATING LEASES | OPERATING LEASES In the six months ended June 30, 2021, the Company redelivered two VLCCs to an unrelated third party at the end of the charter-in agreement that were previously classified as operating leases. The Company has allocated the consideration due under the leases between the lease and non-lease components based upon the estimated standalone price of the services provided by the owner of the vessels, which include the provision of crewing, vessel insurance, repairs and maintenance and lubes. In the six months ended June 30, 2021, the Company has recorded the non-lease component of $1.7 million ($3.3 million in the six months ended June 30, 2020) within ship operating expenses and has recognized the lease component of $2.6 million ($4.5 million in the six months ended June 30, 2020) within charter hire expense within the Condensed Consolidated Statement of Operations. Furthermore, the Company is committed to make rental payments under operating leases for office premises. Certain of these leases include variable lease elements linked to inflation indices. Such variable payments were estimated on the date of adoption of ASC 842 based on the index at that time and included in the minimum lease payments. In the six months ended June 30, 2021, lease expense of $0.9 million ($1.2 million in the six months ended June 30, 2020) was recorded in Administrative expenses in the Condensed Consolidated Statement of Operations. Rental expense The future minimum rental payments under the Company's non-cancellable operating leases as of June 30, 2021 are as follows: (in thousands of $) Year 1 1,260 Year 2 1,156 Year 3 1,094 Year 4 1,123 Year 5 568 Thereafter — Total minimum lease payments 5,201 Less: Imputed interest (366) Present value of operating lease liabilities 4,835 The future minimum rental payments under the Company's non-cancellable operating leases as of December 31, 2020 are as follows: (in thousands of $) 2021 4,705 2022 1,182 2023 1,078 2024 1,107 2025 1,137 Thereafter — Total minimum lease payments 9,209 Less: Imputed interest (484) Present value of operating lease liabilities 8,725 Total expense for operating leases was $3.5 million in the six months ended June 30, 2021 (2020: $5.8 million). Total cash paid in respect of operating leases was $3.5 million in the six months ended June 30, 2021 (2020: $5.7 million). The weighted average discount in relation to the operating leases was 3.3% for the six months ended June 30, 2021 (2020: 3.8%) and the weighted average lease term was four years (2020: three years) for the six months ended June 30, 2021. Rental income One LR2 tanker and two VLCCs were on fixed rate time charters of December 31, 2020, the terms of which all ended in the six months ended June 30, 2021. In addition, Frontline has chartered-out five vessels to Trafigura, for a period of three years commencing in August 2019, at a daily base rate of $28,400 plus 50% profit share. The minimum future revenues to be received under our fixed rate contracts as of June 30, 2021 are as follows: (in thousands of $) Year 1 26,128 Year 2 28,968 Year 3 — Year 4 — Year 5 — Thereafter — Total minimum lease payments 55,096 Profit share to be earned under our chartering arrangements has been excluded from the minimum future revenues above. Our revenues from these leases have been included within time charter revenues in the Condensed Consolidated Statement of Operations, which solely relates to leasing revenues. There are no options to extend our operating leases where we are the lessor. The cost and accumulated depreciation of vessels leased to third parties as of June 30, 2021 were $328.0 million and $15.1 million, respectively, and as of December 31, 2020 were $509.5 million and $49.4 million, respectively. Contingent rental income In the six months ended June 30, 2021, the Company recognized profit share income of nil in relation to the five time charters to Trafigura (2020: $6.3 million). |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT In February 2021, the Company extended the terms of its senior unsecured revolving credit facility of up to $275.0 million with an affiliate of Hemen by 12 months to May 2022. In the six months ended June 30, 2021, the Company drew down $101.7 million under the facility to finance installments for the six VLCCs under construction. $113.3 million remains available and undrawn under this facility as of June 30, 2021. The Company drew down $33.4 million in March 2021 and $33.4 million in April 2021 under its senior secured term loan facility of up to $133.7 million with CEXIM and Sinosure to partially finance the delivery of two LR2 tankers, Front Fusion and Front Future , respectively, from SWS. The facility has a tenor of 12 years, carries an interest rate of LIBOR plus a margin in line with the Company's other loan facilities and has an amortization profile of 17 years counting from delivery date from the yard. Golden Ocean shares As of December 31, 2020, the Company held 1,270,657 shares of Golden Ocean, of which 1,260,358 were held as marketable securities pledged to creditors ("the shares"). In December 2020, the Company entered into a forward contract to repurchase the shares in March 2021 for $6.2 million. In March 2021, the Company repurchased the Golden Ocean shares and subsequently sold them for the proceeds of $9.8 million . Simultaneously, the Company entered into a forward contract to repurchase the shares in June 2021 for $9.8 million and received net cash proceeds of $3.6 million in connection therewith, after adjustment for foreign exchange differences. The net cash proceeds were treated as a drawdown of debt in the Condensed Consolidated Statement of Cash Flows. In June 2021, the Company repurchased the Golden Ocean shares and subsequently sold them for proceeds of $13.4 million. The repurchase of the shares for $9.8 million was treated as a settlement of debt in the Condensed Consolidated Statement of Cash Flows. Debt issuance costs The Company has recorded debt issuance costs (i.e. deferred charges) of $19.7 million as of June 30, 2021 (December 31, 2020: $20.2 million) as a direct deduction from the carrying amount of the related debt. Assets pledged (in thousands of $) 2021 2020 Vessels and equipment, net 3,340,562 3,306,863 |
SHARE CAPITAL
SHARE CAPITAL | 6 Months Ended |
Jun. 30, 2021 | |
SHARE CAPITAL [Abstract] | |
SHARE CAPITAL | SHARE CAPITALThe authorized share capital of the Company as of June 30, 2021 is $500,000,000 divided into 500,000,000 shares of $1.00 par value each, of which 197,692,321 shares (December 31, 2020: 197,692,321 shares) of $1.00 par value each are in issue and fully paid. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS Interest rate swap agreements In February 2013, the Company entered into six interest rate swaps with Nordea Bank, of which one remained outstanding as of June 30, 2021, whereby the floating interest rate on an original principal amount of $260.0 million was switched to fixed rate. In February 2016, the Company entered into an interest rate swap with DNB whereby the floating interest on notional debt of $150.0 million was switched to a fixed rate. The contract had a forward start date of February 2019. In March 2020, the Company entered into three interest rate swaps with DNB whereby the floating interest rate on notional debt totaling $250.0 million was switched to a fixed rate. In April 2020, the Company entered into two interest rate swaps with Nordea Bank whereby the floating interest rate on notional debt totaling $150.0 million was switched to a fixed rate. The reference rate for our interest rate swaps is LIBOR. As of June 30, 2021, the Company recorded a derivative instruments receivable of $4.6 million (December 31, 2020: nil ) and a derivative instruments liability of $10.0 million (December 31, 2020: $19.3 million) in relation to these agreements. The Company recorded a gain on derivatives of $11.0 million in the six months ended June 30, 2021 (six months ended June 30, 2020: loss of $21.7 million) in relation to these agreements. The interest rate swaps are not designated as hedges and are summarized as of June 30, 2021 as follows: Notional Amount Inception Date Maturity Date Fixed Interest Rate ($000s) 11,318 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 % 561,318 Fair Values The carrying value and estimated fair value of the Company's financial assets and liabilities as of June 30, 2021 and December 31, 2020 are as follows: 2021 2020 (in thousands of $) Carrying Fair Carrying Fair Assets: Cash and cash equivalents 140,361 140,361 174,721 174,721 Restricted cash 1,140 1,140 14,928 14,928 Marketable securities 2,673 2,673 2,639 2,639 Marketable securities pledged to creditors — — 5,835 5,835 Derivative instruments receivable 4,557 4,557 — — Liabilities: Floating rate debt 2,075,867 2,075,867 2,089,930 2,089,930 Fixed rate debt 161,700 160,141 66,251 65,348 Derivative instruments payable 9,972 9,972 19,261 19,261 The estimated fair value of financial assets and liabilities as of June 30, 2021 are as follows: (in thousands of $) Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents 140,361 140,361 — — Restricted cash 1,140 1,140 — — Marketable securities 2,673 2,673 — — Derivative instruments receivable 4,557 — 4,557 — Liabilities: Floating rate debt 2,075,867 — 2,075,867 — Fixed rate debt 160,141 — — 160,141 Derivative instruments payable 9,972 — 9,972 — The estimated fair value of financial assets and liabilities as of December 31, 2020 are as follows: (in thousands of $) Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents 174,721 174,721 — — Restricted cash 14,928 14,928 — — Marketable securities 2,639 2,639 — — Marketable securities pledged to creditors 5,835 5,835 — — Liabilities: Floating rate debt 2,089,930 — 2,089,930 — Fixed rate debt 65,348 — 6,251 59,097 Derivative instruments payable 19,261 — 19,261 — The following methods and assumptions were used to estimate the fair value of each class of financial instrument; Cash and cash equivalents – the carrying values in the balance sheet approximate fair value. Restricted cash – the carrying values in the balance sheet approximate fair value. Floating rate debt - the fair value of floating rate debt has been determined using level 2 inputs and is considered to be equal to the carrying value since it bears variable interest rates, which are reset on a quarterly basis. Floating rate debt is presented net of deferred financing charges of $19.7 million as of June 30, 2021 (December 2020: $20.2 million) on the Condensed Consolidated Balance Sheet. Fixed rate debt - short-term debt held with a third party bank has been valued using level 2 inputs, the remaining fixed rate debt has been determined using level 3 inputs being the discounted expected cash flows of the outstanding debt. Assets Measured at Fair Value on a Nonrecurring Basis Nonrecurring fair value measurements include a goodwill impairment assessment completed as of June 30, 2021. The impairment test used Level 1 inputs. Assets Measured at Fair Value on a Recurring Basis Marketable securities are listed equity securities considered to be available-for-sale securities for which the fair value as at the balance sheet date is their aggregate market value based on quoted market prices (level 1). The fair value (level 2) of derivative interest rate swaps is the present value of the estimated future cash flows that the Company would receive or pay to terminate the agreements at the balance sheet date, taking into account, as applicable, fixed interest rates on interest rate swaps, current interest rates, forward rate curves, current and future bunker prices and the credit worthiness of both the Company and the derivative counterparty. Concentrations of risk There is a concentration of credit risk with respect to cash and cash equivalents to the extent that substantially all of the amounts are carried with Skandinaviska Enskilda Banken ("SEB"), HSBC, Royal Bank of Scotland ("RBS"), DNB, Nordea Bank Norge ("Nordea"), Credit Agricole, Credit Suisse AG, Standard Chartered and Citibank N.A.. There is a concentration of credit risk with respect to restricted cash to the extent that substantially all of the amounts are carried with DNB. However, the Company believes this risk is remote. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS We transact business with the following related parties, being companies in which Hemen and companies associated with Hemen have a significant interest: SFL, Seadrill Limited, Seatankers Management Norway AS, Seatankers Management Co. Ltd, Golden Ocean, Alta Trading UK Limited (formerly known as Arcadia Petroleum Limited), Archer Limited , Flex LNG Ltd, and Avance Gas. We also own interests in TFG Marine and Clean Marine AS (through our interest in FMS Holdco) which are accounted for as equity method investments. SFL Transactions As of June 30, 2021, the Company held two vessels under finance leases, which are leased from SFL. The remaining periods on these leases as of June 30, 2021 was approximately six years. A summary of leasing transactions with SFL in the six months ended June 30, 2021 and June 30, 2020 are as follows; (in thousands of $) 2021 2020 Charter hire payable (principal and interest) 3,942 4,360 Lease interest expense 2,002 2,455 Contingent rental (income) expense (1,624) 8,270 Remaining lease obligation 52,444 59,974 Contingent rental income in 2021 (expense in 2020) is due to the fact that the actual profit share expense earned by SFL in the six months ended June 30, 2021 of $0.3 million (six months ended June 30, 2020: $10.4 million) was $1.6 million less (six months ended June 30, 2020: $8.3 million more) than the amount accrued in the lease obligation payable when the leases were recorded at fair value at the time of the merger between the C ompany and Frontline 2012. 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 an income o f $1.0 million in the six months ended June 30, 2021 in relation to this pooling arrangement (six months ended June 30, 2020: income of $0.7 million). Transactions with associated companies A share of losses of TFG Marine of $0.7 million w as recognized in the six months ended June 30, 2021. The Company also entered into a bunker supply arrangement with TFG Marine, under which it has paid $107.8 million to TFG Marine in the six months ended June 30, 2021 and $14.0 million remained due as of June 30, 2021. The Company has also agreed to provide a $50.0 million guarantee in respect of the performance of its subsidiaries, and two subsidiaries of an affiliate of Hemen, under a bunker supply arrangement with TFG Marine. As of June 30, 2021 there are no exposures under this guarantee. In addition, should TFG Marine be required to provide a parent company guarantee to its bunker suppliers or finance providers then for any guarantee that is provided by the Trafigura Group and becomes payable Frontline shall pay a pro-rata amount based on its share of the equity in TFG Marine. The maximum liability under this guarantee is $6.0 million and there are no amounts payable under this guarantee as of June 30, 2021. Transactions with other affiliates of Hemen I n the six months ended June 30, 2021, the Company extended the terms of its senior unsecured revolving credit facility of up to $275.0 million with an affiliate of Hemen by 12 months to May 2022. The Company recognized interest expense of $2.3 million in the six months ended June 30, 2021 (six months ended June 30, 2020: $2.8 million). $113.3 million remains available and undrawn under this facility as of June 30, 2021. In the six months ended June 30, 2021, the Company chartered four of its vessels to an affiliate of Hemen, of which one was a time charter with an initial term of 8 months. The Company recognized re venue of $1.0 million in re lation to these charters in the six months ended June 30, 2021. A summary of net amounts earned from (paid to) related parties in the six months ended June 30, 2021 and June 30, 2020 are as follows: (in thousands of $) 2021 2020 Seatankers Management Co. Ltd 1,641 6,037 SFL 2,668 2,206 Golden Ocean 2,409 3,311 Flex LNG Ltd 929 635 Seatankers Management Norway AS (344) (248) Seadrill Limited 137 133 Archer Limited 74 225 Alta Trading UK Limited 1,018 23,558 Avance Gas 1,207 335 TFG Marine 386 — Other related parties 90 76 Amounts earned from related parties comprise office rental income, technical and commercial management fees, newbuilding supervision fees, freights, corporate and administrative services income and interest income. Amounts paid to related parties comprise primarily rental for office space and the provision of other administrative services and guarantee fees. Related party balances A summary of balances due from related parties as of June 30, 2021 and December 31, 2020 is as follows: (in thousands of $) 2021 2020 SFL 3,549 4,835 Seatankers Management Co. Ltd 4,722 3,578 Archer Limited 43 88 Alta Trading UK Limited — 1,263 Golden Ocean 4,240 2,336 Seadrill Limited 501 25 Flex LNG Ltd 356 366 Avance Gas 842 540 TFG Marine 183 16 Other related parties 193 208 14,629 13,255 A summary of balances due to related parties as of June 30, 2021 and December 31, 2020 is as follows: (in thousands of $) 2021 2020 SFL 5,857 8,978 Seatankers Management Co. Ltd 5,573 3,147 Avance Gas 723 176 Flex LNG Ltd 491 143 Golden Ocean 2,594 2,040 TFG Marine 14,021 5,369 29,259 19,853 See also Note 11, Note 13 and Note 17 for details regarding related party transactions and balances. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Company insures the legal liability risks for its shipping activities with mutual protection and indemnity associations, who are members of the International Group of P&I Clubs. As a member of these mutual associations, the Company is subject to calls payable to the associations based on the Company's claims record in addition to the claims records of all other members of the associations. A contingent liability exists to the extent that the claims records of the members of the associations in the aggregate show significant deterioration, which result in additional calls on the members. As of June 30, 2021, the Company’s newbuilding program consisted of two LR2 tankers; which are expected to be delivered in September and November 2021, respectively, and six VLCCs which are expected to be delivered during 2022 starting in the first quarter. As of June 30, 2021, total instalments of $129.7 million had been paid in connection with the Company's remaining newbuilding program, and remaining commitments amounted to $530.7 million, of which we expect $93.3 million to be paid in 2021 and $437.4 million to be paid in 2022. The Company had entered into forward bunker purchase arrangements for the delivery of 5,000 MT of bunker fuel per month for delivery between October 2020 to December 2021. The contracts oblige the Company to purchase and take delivery of the fixed quantity of physical fuel at prices between $325 per MT and $365 per MT. In addition, the Company has entered into a further arrangement for the delivery of 5,000 MT of bunker fuel per month for delivery between January 2021 to December 2021. The contract obliges the Company to purchase and take delivery of the physical fuel at $232 per MT. As of June 30, 2021, the remaining commitments amounted to $17.9 million, all of which is expected to be paid in 2021. As of June 30, 2021, the Company has agreed to provide a $50.0 million guarantee in respect of the performance of its subsidiaries, and two subsidiaries of an affiliate of Hemen, under a bunker supply arrangement with TFG Marine. As at June 30, 2021 there are no amounts payable under this guarantee. In addition, should TFG Marine be required to provide a parent company guarantee to its bunker suppliers or finance providers then for any guarantee that is provided by the Trafigura Group and becomes payable Frontline shall pay a pro rata amount based on its share of the equity in TFG Marine. The maximum liability under this guarantee is $6.0 million and there are no amounts are payable under this guarantee as of June 30, 2021. See Note 13. for further details. In June 2021, the Company entered into an agreement to acquire two scrubber fitted, latest generation ECO-type VLCCs built in 2019 at the HHI shipyard in South Korea for a total of $180.0 million. The vessels are scheduled to deliver during the fourth quarter of 2021. The Company is a party, as plaintiff or defendant, to several lawsuits in various jurisdictions for unpaid charter hire, demurrage, damages, off-hire and other claims and commercial disputes arising from the operation of its vessels, in the ordinary course of business or in connection with its acquisition activities. The Company believes that the resolution of such claims will not have a material adverse effect on the Company's operations or financial condition individually and in the aggregate. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS In July 2021, the Company issued 339,000 ordinary shares under its share option scheme at a strike price of $5.70 per share. The shares were issued to John Fredriksen (198,000 shares), Inger M. Klemp (120,000 shares), and Ola Lorentzon (21,000 shares). Following such issuance, Frontline has an issued share capital of $198,031,321 divided into 198,031,321 ordinary shares. In July 2021, the Company paid deposits of $18.0 million towards the total purchase price of $180.0 million for the two 2019 built VLCCs. In August 2021, the Company obtained a financing commitment for a senior secured term loan facility in an amount of up to $130.0 million from DNB to partially finance the acquisition of two of the six resale VLCC newbuilding contracts. The facility will have a tenor of 5 years, carry an interest rate of LIBOR plus a margin of 170 basis points and will have an amortization profile of 20 years counting from delivery date from the yard. The facility is subject to final documentation. In August 2021, the Company obtained a financing commitment for a senior secured term loan facility in an amount of up to $58.5 million from SEB to partially finance the acquisition of one of the two 2019 built VLCCs. The facility will have a tenor of 5 years, carry an interest rate of LIBOR plus a margin of 170 basis points and will have an amortization profile of 20 years counting from delivery date from the yard. The facility is subject to final documentation. In August 2021, the Company obtained a financing commitment for a senior secured term loan facility in an amount of up to $58.5 million from KFW IPEX-Bank to partially finance the acquisition of one of the two 2019 built VLCCs. The facility will have a tenor of 5 years, carry an interest rate of LIBOR plus a margin of 170 basis points and will have an amortization profile of 20 years counting from delivery date from the yard. The facility is subject to final documentation. |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of accounting | Basis of accounting The Unaudited Condensed Consolidated Interim Financial Statements are prepared in accordance with US GAAP. The Unaudited Condensed Consolidated Interim Financial Statements include the assets and liabilities of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated on consolidation. The Unaudited Condensed Consolidated Interim Financial Statements are prepared in accordance with the accounting policies, which are described in the Company's Annual Report on Form 20-F for the year ended December 31, 2020, which was filed with the Securities and Exchange Commission on March 18, 2021. |
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. In January 2021, the FASB issued ASU 2021-01, which clarified the scope of Topic 848 in relation to derivative instruments and contract modifications. The amendments in these updates are elective and apply to all entities, subject to meeting certain criteria, that have contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The amendments in these updates are effective for all entities as of March 12, 2020 through December 31, 2022. The Company has determined that reference rate reforms will primarily impact its floating rate debt facilities and the interest rate derivatives to which it is a party. We expect to take advantage of the expedients and exceptions for applying GAAP provided by the updates when reference rates currently in use are discontinued and replaced with alternative reference rates. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Number of Shares Outstanding | The components of the numerator and the denominator in the calculation of basic and diluted earnings per share are as follows for the six months ended June 30, 2021 and June 30, 2020: (in thousands of $) 2021 2020 Net income attributable to the Company 2,264 364,993 (in thousands) 2021 2020 Weighted average number of shares 197,692 193,559 Dilutive effect of share options 106 142 Dilutive effect of contingently returnable shares — 4,106 Denominator for diluted earnings per share 197,798 197,807 2021 2020 Cash dividends per share declared — $ 1.10 |
OPERATING REVENUES (Tables)
OPERATING REVENUES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Lease and Non-Lease Components of Revenue | The lease and non-lease components of our revenues in the six months ended June 30, 2021 were as follows: (in thousands of $) Lease Non-lease Total Time charter revenues 42,111 — 42,111 Voyage charter revenues 23,433 290,484 313,917 Other income — 7,982 7,982 Total 65,544 298,466 364,010 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, 2021 and December 31, 2020, the Company reported the following contract assets in relation to its contracts with customers, including those contracts containing lease components where the non-lease component was the predominant component and the revenues where therefore accounted for under ASC 606: (in thousands of $) 2021 2020 Voyages in progress 26,601 27,621 Trade accounts receivable 42,745 25,615 Related party receivables 9,509 7,195 Other current assets 3,337 2,527 Total 82,192 62,958 |
OTHER OPERATING GAINS (Tables)
OTHER OPERATING GAINS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Operating Income (Loss) [Abstract] | |
Other Operating Gains | Other operating gains for the six months ended June 30, 2021 and June 30, 2020 are as follows: (in thousands of $) 2021 2020 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 1,048 766 Other gains 85 268 Other operating gains 1,133 24,219 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of marketable securities | A summary of the movements in marketable securities for the six months ended June 30, 2021 and the year ended December 31, 2020 is presented in the table below: (in thousands of $) 2021 2020 Balance at beginning of period 2,639 3,642 Marketable securities acquired 357 — Proceeds from sale of marketable securities (14,074) — Unrealized gain (loss) on marketable securities held at period end 34 (2,491) Gain on sale of marketable securities 7,881 — Repurchase of marketable securities pledged to creditors 5,836 7,323 Marketable securities pledged to creditors — (5,835) Balance at end of period 2,673 2,639 |
NEWBUILDINGS (Tables)
NEWBUILDINGS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Newbuildings | Movements in the six months ended June 30, 2021 are summarized as follows; (in thousands of $) Balance at December 31, 2020 48,498 Additions, net 178,715 Interest capitalized 644 Transfer to Vessels and Equipment, net (96,683) Balance at June 30, 2021 131,174 |
VESSELS AND EQUIPMENT, NET (Tab
VESSELS AND EQUIPMENT, NET (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Vessels and Equipment, Net | Movements in the six months ended June 30, 2021 are summarized as follows; (in thousands of $) Cost Accumulated Depreciation Net Carrying Value Balance at December 31, 2020 3,867,871 (560,727) 3,307,144 Depreciation (67,451) Additions to vessels and equipment 4,611 Transfers from Newbuildings 96,683 Balance at June 30, 2021 3,969,165 (628,178) 3,340,987 |
VESSELS AND EQUIPMENT UNDER F_2
VESSELS AND EQUIPMENT UNDER FINANCE LEASE, NET (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Schedule of Finance Leased Assets | (in thousands of $) Cost Accumulated Depreciation Net Carrying Value Balance at December 31, 2020 103,888 (50,370) 53,518 Depreciation — (4,283) — Balance at June 30, 2021 103,888 (54,653) 49,235 |
Maturities of Finance Leases | The outstanding obligations under finance leases as of June 30, 2021 are payable as follows: (in thousands of $) Year 1 10,946 Year 2 11,705 Year 3 11,737 Year 4 10,946 Year 5 11,706 Thereafter 7,512 Minimum lease payments 64,552 Less: imputed interest (12,108) Present value of obligations under finance leases 52,444 The outstanding obligations under finance leases as of December 31, 2020 are payable as follows: (in thousands of $) 2021 11,705 2022 10,946 2023 11,705 2024 10,978 2025 11,705 Thereafter 13,347 Minimum lease payments 70,386 Less: imputed interest (14,109) Present value of obligations under finance leases 56,277 |
Lease Cost | The Company recognized the following income (expenses) in relation to the amortization of finance lease assets and obligations in the six months ended June 30, 2021 and June 30, 2020: (in thousands of $) June 30, 2021 June 30, 2020 Depreciation of vessels under finance leases (4,283) (7,282) Interest expense on obligations under finance leases (2,002) (4,833) Contingent rental income (expense) 1,624 (8,270) Gain on termination of vessel lease — 7,409 Total finance lease expense, net (4,661) (12,976) |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Operating Lease Maturity | The future minimum rental payments under the Company's non-cancellable operating leases as of June 30, 2021 are as follows: (in thousands of $) Year 1 1,260 Year 2 1,156 Year 3 1,094 Year 4 1,123 Year 5 568 Thereafter — Total minimum lease payments 5,201 Less: Imputed interest (366) Present value of operating lease liabilities 4,835 The future minimum rental payments under the Company's non-cancellable operating leases as of December 31, 2020 are as follows: (in thousands of $) 2021 4,705 2022 1,182 2023 1,078 2024 1,107 2025 1,137 Thereafter — Total minimum lease payments 9,209 Less: Imputed interest (484) Present value of operating lease liabilities 8,725 |
Schedule of Future Rental Income | The minimum future revenues to be received under our fixed rate contracts as of June 30, 2021 are as follows: (in thousands of $) Year 1 26,128 Year 2 28,968 Year 3 — Year 4 — Year 5 — Thereafter — Total minimum lease payments 55,096 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of assets pledged | Assets pledged (in thousands of $) 2021 2020 Vessels and equipment, net 3,340,562 3,306,863 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of interest rate swaps not designated as hedges | The interest rate swaps are not designated as hedges and are summarized as of June 30, 2021 as follows: Notional Amount Inception Date Maturity Date Fixed Interest Rate ($000s) 11,318 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 % 561,318 |
Carrying value and estimated fair value of financial instruments | The carrying value and estimated fair value of the Company's financial assets and liabilities as of June 30, 2021 and December 31, 2020 are as follows: 2021 2020 (in thousands of $) Carrying Fair Carrying Fair Assets: Cash and cash equivalents 140,361 140,361 174,721 174,721 Restricted cash 1,140 1,140 14,928 14,928 Marketable securities 2,673 2,673 2,639 2,639 Marketable securities pledged to creditors — — 5,835 5,835 Derivative instruments receivable 4,557 4,557 — — Liabilities: Floating rate debt 2,075,867 2,075,867 2,089,930 2,089,930 Fixed rate debt 161,700 160,141 66,251 65,348 Derivative instruments payable 9,972 9,972 19,261 19,261 |
Financial assets and liabilities measured at fair value on recurring basis | The estimated fair value of financial assets and liabilities as of June 30, 2021 are as follows: (in thousands of $) Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents 140,361 140,361 — — Restricted cash 1,140 1,140 — — Marketable securities 2,673 2,673 — — Derivative instruments receivable 4,557 — 4,557 — Liabilities: Floating rate debt 2,075,867 — 2,075,867 — Fixed rate debt 160,141 — — 160,141 Derivative instruments payable 9,972 — 9,972 — The estimated fair value of financial assets and liabilities as of December 31, 2020 are as follows: (in thousands of $) Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents 174,721 174,721 — — Restricted cash 14,928 14,928 — — Marketable securities 2,639 2,639 — — Marketable securities pledged to creditors 5,835 5,835 — — Liabilities: Floating rate debt 2,089,930 — 2,089,930 — Fixed rate debt 65,348 — 6,251 59,097 Derivative instruments payable 19,261 — 19,261 — |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of leasing transactions with related party | A summary of leasing transactions with SFL in the six months ended June 30, 2021 and June 30, 2020 are as follows; (in thousands of $) 2021 2020 Charter hire payable (principal and interest) 3,942 4,360 Lease interest expense 2,002 2,455 Contingent rental (income) expense (1,624) 8,270 Remaining lease obligation 52,444 59,974 |
Schedule of related party receivables and payables | A summary of net amounts earned from (paid to) related parties in the six months ended June 30, 2021 and June 30, 2020 are as follows: (in thousands of $) 2021 2020 Seatankers Management Co. Ltd 1,641 6,037 SFL 2,668 2,206 Golden Ocean 2,409 3,311 Flex LNG Ltd 929 635 Seatankers Management Norway AS (344) (248) Seadrill Limited 137 133 Archer Limited 74 225 Alta Trading UK Limited 1,018 23,558 Avance Gas 1,207 335 TFG Marine 386 — Other related parties 90 76 Amounts earned from related parties comprise office rental income, technical and commercial management fees, newbuilding supervision fees, freights, corporate and administrative services income and interest income. Amounts paid to related parties comprise primarily rental for office space and the provision of other administrative services and guarantee fees. Related party balances A summary of balances due from related parties as of June 30, 2021 and December 31, 2020 is as follows: (in thousands of $) 2021 2020 SFL 3,549 4,835 Seatankers Management Co. Ltd 4,722 3,578 Archer Limited 43 88 Alta Trading UK Limited — 1,263 Golden Ocean 4,240 2,336 Seadrill Limited 501 25 Flex LNG Ltd 356 366 Avance Gas 842 540 TFG Marine 183 16 Other related parties 193 208 14,629 13,255 A summary of balances due to related parties as of June 30, 2021 and December 31, 2020 is as follows: (in thousands of $) 2021 2020 SFL 5,857 8,978 Seatankers Management Co. Ltd 5,573 3,147 Avance Gas 723 176 Flex LNG Ltd 491 143 Golden Ocean 2,594 2,040 TFG Marine 14,021 5,369 29,259 19,853 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||
Net income attributable to the Company | $ 2,264 | $ 364,993 |
Weighted average number of shares (in shares) | 197,692 | 193,559 |
Dilutive effect of share options (in shares) | 106 | 142 |
Dilutive effect of contingently returnable shares (in shares) | 0 | 4,106 |
Denominator for diluted earnings per share (in shares) | 197,798 | 197,807 |
Cash dividends per share declared (in dollars per share) | $ 0 | $ 1.10 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) | 6 Months Ended |
Jun. 30, 2021shares | |
Earnings Per Share [Abstract] | |
Dilutive shares included in calculation (in shares) | 105,541 |
OPERATING REVENUES - Disaggrega
OPERATING REVENUES - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Lease | $ 65,544 | $ 590,877 |
Non-lease | 298,466 | 208,027 |
Total revenues | 364,010 | 798,904 |
Time charter revenues | ||
Disaggregation of Revenue [Line Items] | ||
Lease | 42,111 | 76,534 |
Non-lease | 0 | 0 |
Total revenues | 42,111 | 76,534 |
Voyage charter revenues | ||
Disaggregation of Revenue [Line Items] | ||
Lease | 23,433 | 514,343 |
Non-lease | 290,484 | 194,185 |
Total revenues | 313,917 | 708,528 |
Other income | ||
Disaggregation of Revenue [Line Items] | ||
Lease | 0 | 0 |
Non-lease | 7,982 | 13,842 |
Total revenues | $ 7,982 | $ 13,842 |
OPERATING REVENUES - Narrative
OPERATING REVENUES - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Contract assets | $ 82,192 | $ 62,958 |
Impairment loss | 0 | $ 0 |
Balance Capitalized In Current Year | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Gross asset contract with customer | 5,200 | |
Amortization capitalized contract cost | 1,900 | |
Contract assets | 3,300 | |
Balance Capitalized In Prior Year | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Amortization capitalized contract cost | $ 2,500 |
OPERATING REVENUES - Contract A
OPERATING REVENUES - Contract Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Capitalized Contract Cost [Line Items] | ||
Contract assets | $ 82,192 | $ 62,958 |
Voyages in progress | ||
Capitalized Contract Cost [Line Items] | ||
Contract assets | 26,601 | 27,621 |
Trade accounts receivable | ||
Capitalized Contract Cost [Line Items] | ||
Contract assets | 42,745 | 25,615 |
Related party receivables | ||
Capitalized Contract Cost [Line Items] | ||
Contract assets | 9,509 | 7,195 |
Other current assets | ||
Capitalized Contract Cost [Line Items] | ||
Contract assets | $ 3,337 | $ 2,527 |
OTHER OPERATING GAINS (Details)
OTHER OPERATING GAINS (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Operating Income (Loss) [Abstract] | |||
Gain on termination of vessel lease | $ 0 | $ 7,409 | |
Gain on sale of vessel | 0 | 12,354 | |
Gain on settlement of claim | $ 3,400 | 0 | 3,422 |
Gain on pool arrangements | 1,048 | 766 | |
Other gains | 85 | 268 | |
Other operating gains | $ 1,133 | $ 24,219 |
OTHER OPERATING GAINS - Narrati
OTHER OPERATING GAINS - Narrative (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | |||
Apr. 30, 2020USD ($)very_large_crude_carrier | Mar. 31, 2020USD ($) | Feb. 29, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Gain on settlement of claim | $ 3,400 | $ 0 | $ 3,422 | ||
Gain on sale of vessel | 0 | 12,354 | |||
Gain on pooling arrangements | 1,000 | 800 | |||
Gain on miscellaneous settlements | $ 100 | $ 300 | |||
Investment In Finance Lease | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Number of vessels sold recorded as investment in finance lease | very_large_crude_carrier | 1 | ||||
Purchase price consideration | $ 25,500 | ||||
Gain on sale of vessel | $ 12,400 | ||||
SFL | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Compensation received on termination of contract | $ 3,200 | ||||
Gain on contract termination | $ 7,400 |
RESTRICTED CASH (Details)
RESTRICTED CASH (Details) $ in Millions | 6 Months Ended | |||||
Jun. 30, 2021USD ($) | Jun. 30, 2021 | Jun. 30, 2021Rate | Jun. 30, 2021very_large_crude_carrier | Jun. 30, 2021vessels | Dec. 31, 2020USD ($)vessels | |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Cash required to be maintained for covenant compliance | $ 102.8 | $ 103.5 | ||||
Cash required to be maintained for covenant compliance, percentage | 100.00% | 50.00% | 100.00% | |||
Finance lease, number of leased assets | vessels | 2 | 2 | ||||
Cash buffer per vessel, covenant compliance | 2 | |||||
Interest rate swap | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Restricted cash | 1.1 | $ 13.4 | ||||
SFL | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Finance lease, number of leased assets | very_large_crude_carrier | 2 | |||||
Cash surplus required for vessel leasing agreements | $ 5.3 | $ 15.6 |
MARKETABLE SECURITIES (Details)
MARKETABLE SECURITIES (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |||
Marketable securities, beginning balance | $ 2,639 | $ 3,642 | $ 3,642 |
Marketable securities acquired | 357 | 0 | 0 |
Proceeds from sale of marketable securities | (14,074) | $ 0 | 0 |
Unrealized gain (loss) on marketable securities held at period end | 34 | (2,491) | |
Gain on sale of marketable securities | 7,881 | 0 | |
Repurchase of marketable securities pledged to creditors | 5,836 | 7,323 | |
Marketable securities pledged to creditors | 0 | (5,835) | |
Marketable securities, ending balance | $ 2,673 | $ 2,639 |
MARKETABLE SECURITIES - Narrati
MARKETABLE SECURITIES - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Apr. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Debt and Equity Securities, FV-NI [Line Items] | |||||||
Marketable securities acquired | $ 357 | $ 0 | $ 0 | ||||
Proceeds from sale of marketable securities | 14,074 | $ 0 | 0 | ||||
Gain on sale of marketable securities | 7,881 | $ 0 | |||||
Golden Ocean | |||||||
Debt and Equity Securities, FV-NI [Line Items] | |||||||
Unrealized (loss)/gain on investments | $ 100 | ||||||
Number of marketable securities (in shares) | 1,270,657 | ||||||
Number of marketable securities pledged to creditors (in shares) | 0 | 0 | 1,260,358 | ||||
Secured debt, repurchase agreements | $ 9,800 | $ 6,200 | $ 9,800 | ||||
Marketable securities acquired | 3,600 | $ 400 | 3,600 | ||||
Proceeds from sale of marketable securities | 700 | $ 9,800 | $ 13,400 | ||||
Gain on sale of marketable securities | $ 300 | $ 7,600 | |||||
Marketable securities, from exercise of subscription rights | 55,959 | ||||||
Marketable securities, number of shares held (in shares) | 10,299 | 10,299 | |||||
Avance Gas | |||||||
Debt and Equity Securities, FV-NI [Line Items] | |||||||
Unrealized (loss)/gain on investments | $ (100) | ||||||
Number of marketable securities (in shares) | 400,000 | ||||||
SFL | |||||||
Debt and Equity Securities, FV-NI [Line Items] | |||||||
Unrealized (loss)/gain on investments | $ 100 | ||||||
Number of marketable securities (in shares) | 100,000 |
NEWBUILDINGS (Details)
NEWBUILDINGS (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Movement In Construction In Progress [Roll Forward] | |
Balance at December 31, 2020 | $ 48,498 |
Additions, net | 178,715 |
Interest capitalized | 644 |
Transfer to Vessels and Equipment, net | (96,683) |
Balance at June 30, 2021 | $ 131,174 |
NEWBUILDINGS - Narrative (Detai
NEWBUILDINGS - Narrative (Details) | 6 Months Ended |
Jun. 30, 2021large_range_2Tanker_vessel_typevery_large_crude_carrier | |
Property, Plant and Equipment [Line Items] | |
Number of newbuild vessels delivered | 2 |
Number of newbuild vessels | 2 |
September And November 2021 Delivery | |
Property, Plant and Equipment [Line Items] | |
Number of newbuild vessels | 2 |
2022 Delivery | |
Property, Plant and Equipment [Line Items] | |
Number of newbuild vessels | very_large_crude_carrier | 6 |
VESSELS AND EQUIPMENT, NET (Det
VESSELS AND EQUIPMENT, NET (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021USD ($)vesselslarge_range_2Tanker_vessel_type | Dec. 31, 2020USD ($) | |
Movement in Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment [Roll Forward] | ||
Number of newbuild vessels delivered | large_range_2Tanker_vessel_type | 2 | |
Number of vessels with EGCs installed during the period | vessels | 1 | |
Owned vessels | ||
Movement in Property, Plant and Equipment [Roll Forward] | ||
Vessels and equipment, gross, beginning balance | $ 3,867,871 | |
Additions to vessels and equipment | 4,611 | |
Transfers from Newbuildings | 96,683 | |
Vessels and equipment, gross, ending balance | 3,969,165 | |
Movement in Accumulated Depreciation, Depletion and Amortization, Property, Plant and Equipment [Roll Forward] | ||
Accumulated depreciation, beginning balance | (560,727) | |
Depreciation | (67,451) | |
Accumulated depreciation, ending balance | (628,178) | |
Vessels and equipment, net | $ 3,340,987 | $ 3,307,144 |
VESSELS AND EQUIPMENT UNDER F_3
VESSELS AND EQUIPMENT UNDER FINANCE LEASE, NET - Narrative (Details) - vessels | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Finance lease, number of leased assets | 2 | 2 |
Finance lease, remaining lease term | 6 years | 6 years |
Weighted average discount rate (percent) | 7.50% |
VESSELS AND EQUIPMENT UNDER F_4
VESSELS AND EQUIPMENT UNDER FINANCE LEASE, NET - Finance Lease Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Cost | |||
Balance at December 31, 2020 | $ 103,888 | ||
Balance at June 30, 2021 | 103,888 | ||
Accumulated Depreciation | |||
Balance at December 31, 2020 | (50,370) | ||
Depreciation | (4,283) | $ (7,282) | |
Balance at June 30, 2021 | (54,653) | ||
Net Carrying Value | $ 49,235 | $ 53,518 |
VESSELS AND EQUIPMENT UNDER F_5
VESSELS AND EQUIPMENT UNDER FINANCE LEASE, NET - Maturities of Finance Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Year 1 | $ 10,946 | |
Year 2 | 11,705 | |
Year 3 | 11,737 | |
Year 4 | 10,946 | |
Year 5 | 11,706 | |
Thereafter | 7,512 | |
Minimum lease payments | 64,552 | $ 70,386 |
Less: imputed interest | (12,108) | (14,109) |
Present value of obligations under finance leases | $ 52,444 | $ 56,277 |
VESSELS AND EQUIPMENT UNDER F_6
VESSELS AND EQUIPMENT UNDER FINANCE LEASE, NET - Maturities of Finance Leases For Previous Year (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2021 | $ 11,705 | |
2022 | 10,946 | |
2023 | 11,705 | |
2024 | 10,978 | |
2025 | 11,705 | |
Thereafter | 13,347 | |
Minimum lease payments | $ 64,552 | 70,386 |
Less: imputed interest | (12,108) | (14,109) |
Present value of obligations under finance leases | $ 52,444 | $ 56,277 |
VESSELS AND EQUIPMENT UNDER F_7
VESSELS AND EQUIPMENT UNDER FINANCE LEASE, NET - Lease Cost (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||
Depreciation of vessels under finance leases | $ (4,283) | $ (7,282) |
Interest expense on obligations under finance leases | (2,002) | (4,833) |
Contingent rental income (expense) | 1,624 | (8,270) |
Gain on termination of vessel lease | 0 | 7,409 |
Total finance lease expense, net | $ (4,661) | $ (12,976) |
OPERATING LEASES - Narrative (D
OPERATING LEASES - Narrative (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021USD ($)very_large_crude_carrier | Jun. 30, 2020USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Number of redelivered vessels | very_large_crude_carrier | 2 | |
Lease expense | $ 4,661 | $ 12,976 |
Payments for operating leases | $ 3,500 | $ 5,700 |
Operating lease, weighted average discount rate | 3.30% | 3.80% |
Operating lease, weighted average remaining lease term | 4 years | 3 years |
Property Subject to Operating Lease | ||
Lessee, Lease, Description [Line Items] | ||
Lease expense | $ 3,500 | $ 5,800 |
Ship operating expense | ||
Lessee, Lease, Description [Line Items] | ||
Lease expense | 1,700 | 3,300 |
Charter hire expense | ||
Lessee, Lease, Description [Line Items] | ||
Lease expense | 2,600 | 4,500 |
Administrative expense | ||
Lessee, Lease, Description [Line Items] | ||
Lease expense | $ 900 | $ 1,200 |
OPERATING LEASES - Maturities o
OPERATING LEASES - Maturities of Operating Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Year 1 | $ 1,260 | |
Year 2 | 1,156 | |
Year 3 | 1,094 | |
Year 4 | 1,123 | |
Year 5 | 568 | |
Thereafter | 0 | |
Total minimum lease payments | 5,201 | $ 9,209 |
Less: Imputed interest | (366) | (484) |
Present value of operating lease liabilities | $ 4,835 | $ 8,725 |
OPERATING LEASES - Maturities_2
OPERATING LEASES - Maturities of Operating Leases For Previous Year (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2021 | $ 4,705 | |
2022 | 1,182 | |
2023 | 1,078 | |
2024 | 1,107 | |
2025 | 1,137 | |
Thereafter | 0 | |
Total minimum lease payments | $ 5,201 | 9,209 |
Less: Imputed interest | (366) | (484) |
Present value of operating lease liabilities | $ 4,835 | $ 8,725 |
OPERATING LEASES - Rental Incom
OPERATING LEASES - Rental Income (Details) | 6 Months Ended | ||||
Jun. 30, 2021USD ($)suezmax_tanker_vessel_type | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020large_range_2Tanker_vessel_type | Dec. 31, 2020very_large_crude_carrier | |
Lessor, Lease, Description [Line Items] | |||||
Vessels on fixed rate time charter | 1 | 2 | |||
Trafigura | |||||
Lessor, Lease, Description [Line Items] | |||||
Time charter revenue, profit sharing | $ 0 | $ 6,300,000 | |||
Assets Under Sale and Purchase Agreement | Trafigura | |||||
Lessor, Lease, Description [Line Items] | |||||
Duration of time charter | 3 years | ||||
Time charter, daily rate, revenue | $ 28,400 | ||||
Percentage of third party charter revenues to be received as profit share income | 50.00% | ||||
Assets Under Sale and Purchase Agreement | Vessels Chartered To Trafigura | |||||
Lessor, Lease, Description [Line Items] | |||||
Number of vessels chartered out | suezmax_tanker_vessel_type | 5 | ||||
Assets Under Sale and Purchase Agreement | Vessels Chartered To Trafigura | Trafigura | |||||
Lessor, Lease, Description [Line Items] | |||||
Vessels on fixed rate time charter | suezmax_tanker_vessel_type | 5 | ||||
Assets leased to others | |||||
Lessor, Lease, Description [Line Items] | |||||
Vessels, gross | $ 328,000,000 | $ 509,500,000 | |||
Accumulated depreciation | $ 15,100,000 | $ 49,400,000 |
OPERATING LEASES - Rental Inc_2
OPERATING LEASES - Rental Income To Be Collected (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Leases [Abstract] | |
Year 1 | $ 26,128 |
Year 2 | 28,968 |
Year 3 | 0 |
Year 4 | 0 |
Year 5 | 0 |
Thereafter | 0 |
Total minimum lease payments | $ 55,096 |
DEBT (Details)
DEBT (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021USD ($)shares | Apr. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Feb. 28, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)very_large_crude_carrierlarge_range_2Tanker_vessel_typeshares | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)shares | |
Debt Instrument [Line Items] | ||||||||
Proceeds from sale of marketable securities | $ 14,074 | $ 0 | $ 0 | |||||
Marketable securities acquired | 357 | $ 0 | 0 | |||||
Debt issuance costs, gross | $ 19,700 | 19,700 | 20,200 | |||||
Assets pledged [Abstract] | ||||||||
Vessels and equipment, net | 3,340,987 | 3,340,987 | 3,307,144 | |||||
Vessels | ||||||||
Assets pledged [Abstract] | ||||||||
Vessels and equipment, net | $ 3,340,562 | $ 3,340,562 | $ 3,306,863 | |||||
Golden Ocean | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of marketable securities (in shares) | shares | 1,270,657 | |||||||
Number of marketable securities pledged to creditors (in shares) | shares | 0 | 0 | 1,260,358 | |||||
Secured debt, repurchase agreements | $ 9,800 | $ 6,200 | $ 9,800 | |||||
Proceeds from sale of marketable securities | 700 | 9,800 | $ 13,400 | |||||
Marketable securities acquired | 3,600 | $ 400 | 3,600 | |||||
Senior unsecured facility $275.0 million | Other Affiliates Of Hemen | ||||||||
Debt Instrument [Line Items] | ||||||||
Proceeds from issuance of debt | $ 101,700 | |||||||
Number of vessels under construction | very_large_crude_carrier | 6 | |||||||
Senior unsecured facility $275.0 million | Loans Payable | Other Affiliates Of Hemen | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | 275,000 | $ 275,000 | $ 275,000 | |||||
Extension period | 12 months | 12 months | ||||||
Debt instrument, unused borrowing capacity, amount | 113,300 | $ 113,300 | ||||||
Senior Secured Loan Facility, CEXIM And Sinosure | ||||||||
Debt Instrument [Line Items] | ||||||||
Proceeds from issuance of debt | $ 33,400 | $ 33,400 | ||||||
Maximum borrowing capacity | $ 133,700 | $ 133,700 | ||||||
Number of newbuild vessels financed by term loan facility | large_range_2Tanker_vessel_type | 2 | |||||||
Debt instrument, term | 12 years | |||||||
Interest rate amortization profile | 17 years |
SHARE CAPITAL (Details)
SHARE CAPITAL (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
SHARE CAPITAL [Abstract] | ||
Common stock, value authorized | $ 500,000,000 | |
Common stock, shares authorized (in shares) | 500,000,000 | |
Ordinary shares par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares issued (in shares) | 197,692,321 | 197,692,321 |
FINANCIAL INSTRUMENTS - Narrati
FINANCIAL INSTRUMENTS - Narrative (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | |||||
Apr. 30, 2020USD ($)instrument | Mar. 31, 2020USD ($)instrument | Feb. 27, 2013USD ($)instrument | Jun. 30, 2021USD ($)instrument | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Feb. 29, 2016USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Derivative, notional amount | $ 561,318 | ||||||
Derivative instruments payable | 10,000 | $ 19,300 | |||||
Debt issuance costs, gross | 19,700 | 20,200 | |||||
Interest rate swap 2 | |||||||
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] | |||||||
Number of derivatives entered into | instrument | 3 | ||||||
Derivative, notional amount | $ 250,000 | ||||||
Nordea fixed rate swap | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Number of derivatives entered into | instrument | 2 | ||||||
Derivative, notional amount | $ 150,000 | ||||||
Interest rate swap | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Number of derivatives entered into | instrument | 6 | ||||||
Number of derivatives outstanding | instrument | 1 | ||||||
Principal amount of debt used in interest rate swaps | $ 260,000 | ||||||
Derivative instruments receivable | $ 4,600 | $ 0 | |||||
Gain/(loss) on derivative | $ 11,000 | $ (21,700) |
FINANCIAL INSTRUMENTS - Summary
FINANCIAL INSTRUMENTS - Summary of interest rate swaps (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Feb. 29, 2016 |
Debt Instrument [Line Items] | ||
Derivative, notional amount | $ 561,318 | |
Interest rate swap 1 | ||
Debt Instrument [Line Items] | ||
Derivative, notional amount | $ 11,318 | |
Derivative, fixed interest rate (as a percent) | 1.907% | |
Interest rate swap 2 | ||
Debt Instrument [Line Items] | ||
Derivative, notional amount | $ 150,000 | $ 150,000 |
Derivative, fixed interest rate (as a percent) | 2.197% | |
Interest rate swap 3 | ||
Debt Instrument [Line Items] | ||
Derivative, notional amount | $ 100,000 | |
Derivative, fixed interest rate (as a percent) | 0.975% | |
Interest rate swap 4 | ||
Debt Instrument [Line Items] | ||
Derivative, notional amount | $ 50,000 | |
Derivative, fixed interest rate (as a percent) | 0.60% | |
Interest rate swap 5 | ||
Debt Instrument [Line Items] | ||
Derivative, notional amount | $ 100,000 | |
Derivative, fixed interest rate (as a percent) | 0.90% | |
Interest rate swap 6 | ||
Debt Instrument [Line Items] | ||
Derivative, notional amount | $ 100,000 | |
Derivative, fixed interest rate (as a percent) | 0.597% | |
Interest rate swap 7 | ||
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, 2021 | Dec. 31, 2020 |
Liabilities: | ||
Derivative instruments payable | $ 10,000 | $ 19,300 |
Reported Value Measurement | ||
Assets: | ||
Cash and cash equivalents | 140,361 | 174,721 |
Restricted cash | 1,140 | 14,928 |
Marketable securities | 2,673 | 2,639 |
Derivative instruments receivable | 4,557 | 0 |
Liabilities: | ||
Floating rate debt | 2,075,867 | 2,089,930 |
Fixed rate debt | 161,700 | 66,251 |
Derivative instruments payable | 9,972 | 19,261 |
Reported Value Measurement | Collateral Pledged | ||
Assets: | ||
Marketable securities | 0 | 5,835 |
Estimate of Fair Value Measurement | ||
Assets: | ||
Cash and cash equivalents | 140,361 | 174,721 |
Restricted cash | 1,140 | 14,928 |
Marketable securities | 2,673 | 2,639 |
Derivative instruments receivable | 4,557 | 0 |
Liabilities: | ||
Floating rate debt | 2,075,867 | 2,089,930 |
Fixed rate debt | 160,141 | 65,348 |
Derivative instruments payable | 9,972 | 19,261 |
Estimate of Fair Value Measurement | Collateral Pledged | ||
Assets: | ||
Marketable securities | $ 0 | $ 5,835 |
FINANCIAL INSTRUMENTS - Estimat
FINANCIAL INSTRUMENTS - Estimated fair value (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Liabilities: | ||
Derivative instruments payable | $ 10,000 | $ 19,300 |
Fair value, measurements, recurring | ||
Assets: | ||
Cash and cash equivalents | 140,361 | 174,721 |
Restricted cash | 1,140 | 14,928 |
Marketable securities | 2,673 | 2,639 |
Derivative instruments receivable | 4,557 | |
Liabilities: | ||
Floating rate debt | 2,075,867 | 2,089,930 |
Fixed rate debt | 160,141 | 65,348 |
Derivative instruments payable | 9,972 | 19,261 |
Fair value, measurements, recurring | Collateral Pledged | ||
Assets: | ||
Marketable securities | 5,835 | |
Fair Value, Inputs, Level 1 | Fair value, measurements, recurring | ||
Assets: | ||
Cash and cash equivalents | 140,361 | 174,721 |
Restricted cash | 1,140 | 14,928 |
Marketable securities | 2,673 | 2,639 |
Derivative instruments receivable | 0 | |
Liabilities: | ||
Floating rate debt | 0 | 0 |
Fixed rate debt | 0 | 0 |
Derivative instruments payable | 0 | 0 |
Fair Value, Inputs, Level 1 | Fair value, measurements, recurring | Collateral Pledged | ||
Assets: | ||
Marketable securities | 5,835 | |
Fair Value, Inputs, Level 2 | Fair value, measurements, recurring | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Marketable securities | 0 | 0 |
Derivative instruments receivable | 4,557 | |
Liabilities: | ||
Floating rate debt | 2,075,867 | 2,089,930 |
Fixed rate debt | 0 | 6,251 |
Derivative instruments payable | 9,972 | 19,261 |
Fair Value, Inputs, Level 2 | Fair value, measurements, recurring | Collateral Pledged | ||
Assets: | ||
Marketable securities | 0 | |
Fair Value, Inputs, Level 3 | Fair value, measurements, recurring | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Marketable securities | 0 | 0 |
Derivative instruments receivable | 0 | |
Liabilities: | ||
Floating rate debt | 0 | 0 |
Fixed rate debt | 160,141 | 59,097 |
Derivative instruments payable | $ 0 | 0 |
Fair Value, Inputs, Level 3 | Fair value, measurements, recurring | Collateral Pledged | ||
Assets: | ||
Marketable securities | $ 0 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) | 1 Months Ended | 6 Months Ended | ||
Feb. 28, 2021USD ($) | Jun. 30, 2021USD ($)vesselssubsidiary | Jun. 30, 2020USD ($) | Jan. 01, 2014vesselstanker | |
Related Party Transaction [Line Items] | ||||
Share of results of associated companies | $ (724,000) | $ (1,427,000) | ||
TFG Marine | ||||
Related Party Transaction [Line Items] | ||||
Guarantee amount, subsidiary performance | 50,000,000 | |||
TFG Marine | ||||
Related Party Transaction [Line Items] | ||||
Share of results of associated companies | $ 700,000 | |||
SFL | ||||
Related Party Transaction [Line Items] | ||||
Number of vessels under capital lease | vessels | 2 | |||
Remaining periods on these leases, minimum (in years) | 6 years | |||
Profit share expense | $ 300,000 | 10,400,000 | ||
Lease obligation payable in excess of profit sharing expense | 1,600,000 | 8,300,000 | ||
Income on pooled vessels | 1,000,000 | 700,000 | ||
TFG Marine | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction costs | 107,800,000 | |||
Due to related parties | 14,000,000 | |||
Guarantee amount, subsidiary performance | $ 6,000,000 | |||
Number of affiliate's subsidiaries covered by guarantee | subsidiary | 2 | |||
Guarantee amount, current exposure | $ 0 | |||
Other Affiliates Of Hemen | ||||
Related Party Transaction [Line Items] | ||||
Number of vessels chartered out | vessels | 4 | |||
Number of vessels chartered out with terms | vessels | 1 | |||
Term of vessels chartered out | 8 months | |||
Revenue from related parties | $ 1,000,000 | |||
Other Affiliates Of Hemen | Senior unsecured facility $275.0 million | ||||
Related Party Transaction [Line Items] | ||||
Related party interest expense | 2,300,000 | $ 2,800,000 | ||
Other Affiliates Of Hemen | Senior unsecured facility $275.0 million | Loans Payable | ||||
Related Party Transaction [Line Items] | ||||
Debt instrument, face amount | $ 275,000,000 | $ 275,000,000 | ||
Extension period | 12 months | 12 months | ||
Debt instrument, unused borrowing capacity, amount | $ 113,300,000 | |||
Suezmax | SFL | ||||
Related Party Transaction [Line Items] | ||||
Number of vessels from Frontline 2012 involved in pooling arrangement | tanker | 2 | |||
Number of ship finance vessels involved in pooling arrangement | vessels | 2 |
RELATED PARTY TRANSACTIONS - Le
RELATED PARTY TRANSACTIONS - Leasing transactions (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Present value of obligations under finance leases | $ 52,444 | $ 56,277 | |
SFL | |||
Related Party Transaction [Line Items] | |||
Charter hire payable (principal and interest) | 3,942 | $ 4,360 | |
Lease interest expense | 2,002 | 2,455 | |
Contingent rental (income) expense | (1,624) | 8,270 | |
Present value of obligations under finance leases | $ 52,444 | $ 59,974 |
RELATED PARTY TRANSACTIONS - Tr
RELATED PARTY TRANSACTIONS - Transactions with related parties (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Seatankers Management Co. Ltd | ||
Related Party Transaction [Line Items] | ||
Net amounts earned (incurred) from related parties excluding Ship Finance lease related balances | $ 1,641 | $ 6,037 |
SFL | ||
Related Party Transaction [Line Items] | ||
Net amounts earned (incurred) from related parties excluding Ship Finance lease related balances | 2,668 | 2,206 |
Golden Ocean | ||
Related Party Transaction [Line Items] | ||
Net amounts earned (incurred) from related parties excluding Ship Finance lease related balances | 2,409 | 3,311 |
Flex LNG Ltd | ||
Related Party Transaction [Line Items] | ||
Net amounts earned (incurred) from related parties excluding Ship Finance lease related balances | 929 | 635 |
Seatankers Management Norway AS | ||
Related Party Transaction [Line Items] | ||
Net amounts earned (incurred) from related parties excluding Ship Finance lease related balances | (344) | (248) |
Seadrill Limited | ||
Related Party Transaction [Line Items] | ||
Net amounts earned (incurred) from related parties excluding Ship Finance lease related balances | 137 | 133 |
Archer Limited | ||
Related Party Transaction [Line Items] | ||
Net amounts earned (incurred) from related parties excluding Ship Finance lease related balances | 74 | 225 |
Alta Trading UK Limited | ||
Related Party Transaction [Line Items] | ||
Net amounts earned (incurred) from related parties excluding Ship Finance lease related balances | 1,018 | 23,558 |
Avance Gas | ||
Related Party Transaction [Line Items] | ||
Net amounts earned (incurred) from related parties excluding Ship Finance lease related balances | 1,207 | 335 |
TFG Marine | ||
Related Party Transaction [Line Items] | ||
Net amounts earned (incurred) from related parties excluding Ship Finance lease related balances | 386 | 0 |
Other related parties | ||
Related Party Transaction [Line Items] | ||
Net amounts earned (incurred) from related parties excluding Ship Finance lease related balances | $ 90 | $ 76 |
RELATED PARTY TRANSACTIONS - Du
RELATED PARTY TRANSACTIONS - Due from related parties (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Related party receivables | $ 14,629 | $ 13,255 |
SFL | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 3,549 | 4,835 |
Seatankers Management Co. Ltd | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 4,722 | 3,578 |
Archer Limited | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 43 | 88 |
Alta Trading UK Limited | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 0 | 1,263 |
Golden Ocean | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 4,240 | 2,336 |
Seadrill Limited | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 501 | 25 |
Flex LNG Ltd | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 356 | 366 |
Avance Gas | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 842 | 540 |
TFG Marine | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 183 | 16 |
Other related parties | ||
Related Party Transaction [Line Items] | ||
Related party receivables | $ 193 | $ 208 |
RELATED PARTY TRANSACTIONS - _2
RELATED PARTY TRANSACTIONS - Due to related parties (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Related Party Transaction [Line Items] | ||
Related party payables | $ 29,259 | $ 19,853 |
SFL | ||
Related Party Transaction [Line Items] | ||
Related party payables | 5,857 | 8,978 |
Seatankers Management Co. Ltd | ||
Related Party Transaction [Line Items] | ||
Related party payables | 5,573 | 3,147 |
Avance Gas | ||
Related Party Transaction [Line Items] | ||
Related party payables | 723 | 176 |
Flex LNG Ltd | ||
Related Party Transaction [Line Items] | ||
Related party payables | 491 | 143 |
Golden Ocean | ||
Related Party Transaction [Line Items] | ||
Related party payables | 2,594 | 2,040 |
TFG Marine | ||
Related Party Transaction [Line Items] | ||
Related party payables | $ 14,021 | $ 5,369 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021USD ($)large_range_2Tanker_vessel_typesubsidiaryvery_large_crude_carrier$ / metricTon | Mar. 31, 2022very_large_crude_carrier | Jun. 30, 2021USD ($)subsidiarymetric_tonlarge_range_2Tanker_vessel_typevery_large_crude_carrier$ / metricTon | Jun. 30, 2020USD ($) | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||
Number of newbuild vessels | large_range_2Tanker_vessel_type | 2 | 2 | ||
Number of newbuild vessels delivered | large_range_2Tanker_vessel_type | 2 | |||
Installments and newbuilding supervision fees paid | $ 129,700,000 | |||
Remaining cost of vessels under construction | 530,700,000 | |||
Newbuilding installment commitments due in 2021 | $ 93,300,000 | 93,300,000 | ||
Newbuilding installment commitments due in 2022 | 437,400,000 | 437,400,000 | ||
Bunker commitments | $ 17,900,000 | $ 17,900,000 | ||
Number of assets agreed to acquire | very_large_crude_carrier | 2 | 2 | ||
Payments to acquire vessels and equipment | $ 180,000,000 | $ 181,980,000 | $ 152,846,000 | |
TFG Marine | ||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||
Guarantee amount, subsidiary performance | $ 6,000,000 | $ 6,000,000 | ||
Number of affiliate's subsidiaries covered by guarantee | subsidiary | 2 | 2 | ||
Guarantee amount, current exposure | $ 0 | $ 0 | ||
TFG Marine | ||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||
Guarantee amount, subsidiary performance | $ 50,000,000 | $ 50,000,000 | ||
Bunker Fuel Contract, October 2020 through December 2021 | ||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||
Purchase commitments, volume | metric_ton | 5,000 | |||
Bunker Fuel Contract, October 2020 through December 2021 | Minimum | ||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||
Purchase commitment variable price (in USD per MT) | $ / metricTon | 325 | 325 | ||
Bunker Fuel Contract, October 2020 through December 2021 | Maximum | ||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||
Purchase commitment variable price (in USD per MT) | $ / metricTon | 365 | 365 | ||
Bunker Fuel Contract, January 2021 through December 2021 | ||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||
Purchase commitments, volume | metric_ton | 5,000 | |||
Purchase commitment fixed price (in USD per MT) | $ / metricTon | 232 | 232 | ||
Forecast | ||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||
Number of newbuild vessels delivered | very_large_crude_carrier | 6 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 6 Months Ended | ||||
Aug. 31, 2021USD ($)very_large_crude_carrier | Jul. 31, 2021USD ($)very_large_crude_carrier$ / sharesshares | Jun. 30, 2021USD ($)very_large_crude_carriershares | Jun. 30, 2021USD ($)very_large_crude_carriershares | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)shares | |
Subsequent Event [Line Items] | ||||||
Issued share capital | $ | $ 197,692 | $ 197,692 | $ 197,692 | |||
Common stock, shares issued (in shares) | shares | 197,692,321 | 197,692,321 | 197,692,321 | |||
Payments to acquire vessels and equipment | $ | $ 180,000 | $ 181,980 | $ 152,846 | |||
Number of assets agreed to acquire | very_large_crude_carrier | 2 | 2 | ||||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Shares issued on exercise of options (in shares) | shares | 339,000,000 | |||||
Shares issued, price per share (in dollars per share) | $ / shares | $ 5.70 | |||||
Issued share capital | $ | $ 198,031,321 | |||||
Common stock, shares issued (in shares) | shares | 198,031,321 | |||||
Deposits paid to acquire vessels and equipment | $ | $ 18,000 | |||||
Payments to acquire vessels and equipment | $ | $ 180,000 | |||||
Number of assets agreed to acquire | very_large_crude_carrier | 2 | |||||
Subsequent Event | Term loan facility $130.0 million | ||||||
Subsequent Event [Line Items] | ||||||
Number of newbuild vessels partially financed by term loan facility | very_large_crude_carrier | 2 | |||||
Number of newbuild vessels financed by term loan facility | very_large_crude_carrier | 6 | |||||
Subsequent Event | Term loan facility $130.0 million | London Interbank Offered Rate (LIBOR) | ||||||
Subsequent Event [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 1.70% | |||||
Subsequent Event | Term loan facility $130.0 million | Loans Payable | ||||||
Subsequent Event [Line Items] | ||||||
Debt instrument, face amount | $ | $ 130,000 | |||||
Debt instrument, term | 5 years | |||||
Interest rate amortization profile | 20 years | |||||
Subsequent Event | Term loan facility $58.5 million (SEB) | ||||||
Subsequent Event [Line Items] | ||||||
Number of newbuild vessels partially financed by term loan facility | very_large_crude_carrier | 1 | |||||
Number of newbuild vessels financed by term loan facility | very_large_crude_carrier | 2 | |||||
Subsequent Event | Term loan facility $58.5 million (SEB) | London Interbank Offered Rate (LIBOR) | ||||||
Subsequent Event [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 1.70% | |||||
Subsequent Event | Term loan facility $58.5 million (SEB) | Loans Payable | ||||||
Subsequent Event [Line Items] | ||||||
Debt instrument, face amount | $ | $ 58,500 | |||||
Debt instrument, term | 5 years | |||||
Interest rate amortization profile | 20 years | |||||
Subsequent Event | Term loan facility $58.5 million (KFW-IPEX) | ||||||
Subsequent Event [Line Items] | ||||||
Number of newbuild vessels partially financed by term loan facility | very_large_crude_carrier | 1 | |||||
Number of newbuild vessels financed by term loan facility | very_large_crude_carrier | 2 | |||||
Subsequent Event | Term loan facility $58.5 million (KFW-IPEX) | London Interbank Offered Rate (LIBOR) | ||||||
Subsequent Event [Line Items] | ||||||
Debt instrument, basis spread on variable rate | 1.70% | |||||
Subsequent Event | Term loan facility $58.5 million (KFW-IPEX) | Loans Payable | ||||||
Subsequent Event [Line Items] | ||||||
Debt instrument, face amount | $ | $ 58,500 | |||||
Debt instrument, term | 5 years | |||||
Interest rate amortization profile | 20 years | |||||
Subsequent Event | John Fredriksen | ||||||
Subsequent Event [Line Items] | ||||||
Shares issued on exercise of options (in shares) | shares | 198,000,000 | |||||
Subsequent Event | Inger M. Klemp | ||||||
Subsequent Event [Line Items] | ||||||
Shares issued on exercise of options (in shares) | shares | 120,000,000 | |||||
Subsequent Event | Ola Lorentzon | ||||||
Subsequent Event [Line Items] | ||||||
Shares issued on exercise of options (in shares) | shares | 21,000,000 |