Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | FRONTLINE LTD / |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Central Index Key | 0000913290 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 196,894,321 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Document Type | 20-F |
Amendment Flag | false |
Entity Interactive Data Current | Yes |
Entity Emerging Growth Company | false |
Document Period End Date | Dec. 31, 2019 |
Entity Shell Company | false |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating revenues | |||
Total operating revenues | $ 957,322,000 | $ 742,266,000 | $ 646,326,000 |
Other operating gains | (3,422,000) | (10,206,000) | (2,381,000) |
Operating expenses | |||
Voyage expenses and commission | 395,482,000 | 377,772,000 | 259,334,000 |
Contingent rental income | (2,607,000) | (19,738,000) | (26,148,000) |
Ship operating expenses | 157,007,000 | 130,623,000 | 135,728,000 |
Charter hire expenses | 8,471,000 | 21,244,000 | 19,705,000 |
Impairment loss on vessels and vessels held under finance lease | 0 | 0 | 164,187,000 |
Impairment loss on goodwill | 0 | 0 | 112,821,000 |
Administrative expenses | 45,019,000 | 37,294,000 | 37,603,000 |
Depreciation | 117,850,000 | 122,566,000 | 141,748,000 |
Total operating expenses | 721,222,000 | 669,761,000 | 844,978,000 |
Net operating income (loss) | 239,522,000 | 82,711,000 | (196,271,000) |
Other income (expenses) | |||
Interest income | 1,506,000 | 843,000 | 588,000 |
Interest expense | (94,461,000) | (93,275,000) | (69,815,000) |
Unrealized gain (loss) on marketable securities | 1,737,000 | (3,526,000) | 0 |
Gain on sale of shares | 0 | 1,026,000 | 1,061,000 |
Share of results of associated company | 1,681,000 | 246,000 | 0 |
Foreign currency exchange loss | (26,000) | (869,000) | (55,000) |
Gain (loss) on derivatives | (10,069,000) | 4,256,000 | (753,000) |
Other non-operating items, net | 403,000 | 506,000 | 1,213,000 |
Net other expenses | (99,229,000) | (90,793,000) | (67,761,000) |
Net income (loss) before income taxes and non-controlling interest | 140,293,000 | (8,082,000) | (264,032,000) |
Income tax expense | (307,000) | (316,000) | (290,000) |
Net income (loss) | 139,986,000 | (8,398,000) | (264,322,000) |
Net income attributable to non-controlling interest | (14,000) | (482,000) | (539,000) |
Net income (loss) attributable to the Company | $ 139,972,000 | $ (8,880,000) | $ (264,861,000) |
(Loss) earnings per share attributable to Frontline Ltd. stockholders: | |||
Basic earnings (loss) per share attributable to the Company (in dollars per share) | $ 0.81 | $ (0.05) | $ (1.56) |
Diluted earnings (loss) per share attributable to the Company (in dollars per share) | $ 0.78 | $ (0.05) | $ (1.56) |
Voyage charter revenues | |||
Operating revenues | |||
Total operating revenues | $ 887,495,000 | $ 690,901,000 | $ 518,156,000 |
Time charter revenues | |||
Operating revenues | |||
Total operating revenues | 35,433,000 | 26,067,000 | 106,237,000 |
Finance lease interest income | |||
Operating revenues | |||
Total operating revenues | 690,000 | 1,293,000 | 1,748,000 |
Other income | |||
Operating revenues | |||
Total operating revenues | $ 33,704,000 | $ 24,005,000 | $ 20,185,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Comprehensive income | |||
Net income (loss) | $ 139,986 | $ (8,398) | $ (264,322) |
Unrealized gain from marketable securities | 0 | 0 | 1,901 |
Gain from marketable securities reclassified to Consolidated Statement of Operations | 0 | 0 | (571) |
Foreign currency translation gain | 106 | 893 | 158 |
Other comprehensive income | 106 | 893 | 1,488 |
Comprehensive income (loss) | 140,092 | (7,505) | (262,834) |
Comprehensive income attributable to non-controlling interest | (14) | (482) | (539) |
Comprehensive income (loss) attributable to the Company | 140,078 | (7,987) | (263,373) |
Comprehensive income (loss) | $ 140,092 | $ (7,505) | $ (262,834) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets | |||
Cash and cash equivalents | $ 174,223 | $ 66,484 | |
Restricted cash | 3,153 | 1,420 | $ 700 |
Marketable securities | 3,642 | 836 | 19,231 |
Marketable securities pledged to creditors | 7,323 | 8,392 | |
Trade accounts receivable, net | 63,245 | 53,982 | |
Related party receivables | 15,581 | 7,895 | |
Other receivables | 25,468 | 17,068 | |
Inventories | 66,664 | 68,765 | |
Voyages in progress | 71,339 | 59,437 | |
Prepaid expenses and accrued income | 11,167 | 7,804 | |
Current portion of investment in finance lease | 157 | 10,803 | |
Other current assets | 6,526 | 5,359 | |
Total current assets | 448,488 | 308,245 | |
Long-term assets | |||
Newbuildings | 46,068 | 52,254 | 79,602 |
Vessels and equipment, net | 2,579,905 | 2,476,755 | |
Vessels and equipment under finance lease, net | 418,390 | 90,676 | |
Right-of-use assets under operating leases | 12,058 | 0 | |
Investment in finance lease | 10,822 | 10,979 | |
Goodwill | 112,452 | 112,452 | 112,452 |
Derivative instruments receivable | 148 | 7,641 | |
Investment in associated company | 4,927 | 6,246 | |
Prepaid consideration | 55,287 | 0 | |
Other long-term assets | 9,273 | 12,593 | |
Total assets | 3,697,818 | 3,077,841 | |
Current liabilities | |||
Short-term debt and current portion of long-term debt | 438,962 | 120,479 | |
Current portion of obligations under finance leases | 283,463 | 11,854 | |
Current portion of obligations under operating lease | 4,916 | 0 | |
Related party payables | 20,186 | 18,738 | |
Trade accounts payable | 13,042 | 22,212 | |
Accrued expenses | 75,745 | 37,031 | |
Derivative instruments payable | 4,264 | 0 | |
Other current liabilities | 7,545 | 3,904 | |
Total current liabilities | 848,123 | 214,218 | |
Long-term liabilities | |||
Long-term debt | 1,254,417 | 1,610,293 | |
Obligations under finance leases | 76,447 | 87,930 | |
Obligations under operating lease | 7,561 | 0 | |
Other long-term liabilities | 1,062 | 1,183 | |
Total liabilities | 2,187,610 | 1,913,624 | |
Commitments and contingencies | |||
Equity | |||
Share capital (196,894,321 shares. 2018: 169,821,192 shares. All shares are issued and outstanding at par value $1.00 per share) | 196,894 | 169,821 | |
Additional paid in capital | 397,210 | 198,497 | |
Contributed surplus | 1,070,688 | 1,090,376 | |
Accumulated other comprehensive income | 330 | 224 | |
Retained deficit | (155,146) | (295,118) | |
Total equity attributable to the Company | 1,509,976 | 1,163,800 | |
Non-controlling interest | 232 | 417 | |
Total equity | 1,510,208 | 1,164,217 | $ 1,187,629 |
Total liabilities and equity | $ 3,697,818 | $ 3,077,841 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Equity | ||
Share capital, shares issued (in shares) | 196,894,321 | 169,821,192 |
Share capital, shares outstanding (in shares) | 196,894,321 | 169,821,192 |
Ordinary shares issued (dollars per share) | $ 1 | $ 1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Cash Flows [Abstract] | |||
Net income (loss) | $ 139,986,000 | $ (8,398,000) | $ (264,322,000) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation | 117,850,000 | 122,566,000 | 141,748,000 |
Amortization of deferred charges | 4,646,000 | 2,472,000 | 1,913,000 |
Other operating gains | 0 | (10,308,000) | (2,378,000) |
Gain on sale of shares | 0 | (1,026,000) | (1,061,000) |
Contingent rental income | (2,607,000) | (21,273,000) | (26,148,000) |
Finance lease payments received | 15,149,000 | 0 | 0 |
Impairment loss on vessels and vessels held under finance lease | 0 | 0 | 164,187,000 |
Mark to market on marketable securities | (1,737,000) | 3,526,000 | 0 |
Share of results from associated company and gain on equity interest | (1,681,000) | (246,000) | 0 |
Impairment loss on goodwill | 0 | 0 | 112,821,000 |
Mark to market loss (gain) on derivatives | 11,757,000 | (3,190,000) | (93,000) |
Other, net | 756,000 | 743,000 | 1,953,000 |
Changes in operating assets and liabilities, net of acquisition: | |||
Trade accounts receivable | (13,608,000) | (133,000) | (506,000) |
Other receivables | (8,400,000) | 227,000 | 2,122,000 |
Inventories | 2,102,000 | (7,323,000) | (24,079,000) |
Voyages in progress | (11,902,000) | (41,486,000) | 7,084,000 |
Prepaid expenses and accrued income | (3,364,000) | (1,633,000) | (429,000) |
Other current assets | 6,006,000 | (2,349,000) | (1,000) |
Trade accounts payable | (9,171,000) | 10,403,000 | 7,485,000 |
Accrued expenses | 36,342,000 | (1,177,000) | 12,645,000 |
Related party balances | (5,388,000) | 6,990,000 | 3,062,000 |
Other current liabilities | 3,641,000 | (2,163,000) | (6,178,000) |
Other | (190,000) | (51,000) | 660,000 |
Net cash provided by operating activities | 280,187,000 | 46,171,000 | 130,485,000 |
Investing activities | |||
Additions to newbuildings, vessels and equipment | (195,972,000) | (216,310,000) | (713,560,000) |
Purchase of shares | 0 | 0 | (46,100,000) |
Investment in associated company | 0 | (6,000,000) | 0 |
Return of loan to associated company | 3,000,000 | 0 | 0 |
Finance lease payments received | 0 | 5,336,000 | 9,745,000 |
Net proceeds from sale of shares | 0 | 17,757,000 | 27,412,000 |
Reduction in prepaid consideration | 2,401,000 | 0 | 0 |
Net cash used in investing activities | (190,571,000) | (199,217,000) | (722,503,000) |
Financing activities | |||
Net proceeds from issuance of shares | 98,415,000 | 85,000 | 0 |
Proceeds from long-term debt | 146,007,000 | 298,871,000 | 673,416,000 |
Repayment of long-term debt | (185,262,000) | (172,412,000) | (83,951,000) |
Payment of obligations under finance leases | (15,228,000) | (10,094,000) | (31,854,000) |
Lease termination payments | 0 | 0 | (19,006,000) |
Purchase of shares from non-controlling interest | (269,000) | 0 | 0 |
Debt fees paid | (4,119,000) | 0 | (3,495,000) |
Cash dividends paid | (19,688,000) | (386,000) | (51,401,000) |
Proceeds from secured short-term borrowings | 0 | 0 | 10,116,000 |
Net cash provided by financing activities | 19,856,000 | 116,064,000 | 493,825,000 |
Net change in cash, cash equivalents and restricted cash | 109,472,000 | (36,982,000) | (98,193,000) |
Cash , cash equivalents and restricted cash at beginning of year | 67,904,000 | 104,886,000 | 203,079,000 |
Cash, cash equivalents and restricted cash at end of year | 177,376,000 | 67,904,000 | 104,886,000 |
Supplemental disclosure of cash flow information: | |||
Interest paid, net of interest capitalized | 90,602,000 | 80,887,000 | 57,291,000 |
Income taxes paid | $ 324,000 | $ 329,000 | $ 1,222,000 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Share capital | Additional paid in capital | Contributed surplus | Accumulated other comprehensive income | Retained earnings (deficit) | Equity attributable to the Company | Non-controlling interest |
Balance at the beginning of year (in shares) at Dec. 31, 2016 | 169,809,324 | |||||||
Increase (decrease) in Equity [Roll Forward] | ||||||||
Shares issued under ATM program (in shares) | 0 | |||||||
Share issued as consideration for Trafigura acquisition (in shares) | 0 | |||||||
Balance at the end of year (in shares) at Dec. 31, 2017 | 169,809,324 | |||||||
Balance at beginning of year at Dec. 31, 2016 | $ 169,809 | $ 195,304 | $ 1,099,680 | $ 739 | $ 34,069 | $ 168 | ||
Increase (decrease) in Equity [Roll Forward] | ||||||||
Shares issued under ATM program | 0 | 0 | ||||||
Shares issued as consideration for Trafigura acquisition | 0 | 0 | ||||||
Stock compensation expense | 2,095 | |||||||
Adjustment on repurchase of non-controlling interest | 0 | |||||||
Cash dividends | (9,304) | (41,711) | ||||||
Other comprehensive income | $ 1,488 | 1,488 | ||||||
Change in accounting policy: Marketable securities | 0 | 0 | ||||||
Net income (loss) | (264,322) | (264,861) | 539 | |||||
Change in accounting policy: ASC 606/340 | 0 | |||||||
Adjustment on repurchase of non-controlling interest | 0 | |||||||
Dividend paid to non-controlling interest | (386) | |||||||
Balance at the end of year at Dec. 31, 2017 | $ 1,187,629 | 169,809 | 197,399 | 1,090,376 | 2,227 | (272,503) | $ 1,187,308 | 321 |
Increase (decrease) in Equity [Roll Forward] | ||||||||
Shares issued under ATM program (in shares) | 11,868 | |||||||
Share issued as consideration for Trafigura acquisition (in shares) | 0 | |||||||
Balance at the end of year (in shares) at Dec. 31, 2018 | 169,821,192 | |||||||
Increase (decrease) in Equity [Roll Forward] | ||||||||
Shares issued under ATM program | 12 | 73 | ||||||
Shares issued as consideration for Trafigura acquisition | 0 | 0 | ||||||
Stock compensation expense | 1,025 | |||||||
Adjustment on repurchase of non-controlling interest | 0 | |||||||
Cash dividends | 0 | 0 | ||||||
Other comprehensive income | $ 893 | 893 | ||||||
Change in accounting policy: Marketable securities | (2,896) | 2,896 | ||||||
Net income (loss) | (8,398) | (8,880) | 482 | |||||
Change in accounting policy: ASC 606/340 | (16,631) | |||||||
Adjustment on repurchase of non-controlling interest | 0 | |||||||
Dividend paid to non-controlling interest | (386) | |||||||
Balance at the end of year at Dec. 31, 2018 | $ 1,164,217 | 169,821 | 198,497 | 1,090,376 | 224 | (295,118) | 1,163,800 | 417 |
Increase (decrease) in Equity [Roll Forward] | ||||||||
Shares issued under ATM program (in shares) | 11,037,273 | |||||||
Share issued as consideration for Trafigura acquisition (in shares) | 16,035,856 | |||||||
Balance at the end of year (in shares) at Dec. 31, 2019 | 196,894,321 | |||||||
Increase (decrease) in Equity [Roll Forward] | ||||||||
Shares issued under ATM program | 11,037 | 87,378 | ||||||
Shares issued as consideration for Trafigura acquisition | $ 127,000 | 16,036 | 110,967 | |||||
Stock compensation expense | 438 | |||||||
Adjustment on repurchase of non-controlling interest | (70) | |||||||
Cash dividends | (19,688) | 0 | ||||||
Other comprehensive income | 106 | 106 | ||||||
Change in accounting policy: Marketable securities | 0 | 0 | ||||||
Net income (loss) | 139,986 | 139,972 | 14 | |||||
Change in accounting policy: ASC 606/340 | 0 | |||||||
Adjustment on repurchase of non-controlling interest | (199) | |||||||
Dividend paid to non-controlling interest | 0 | |||||||
Balance at the end of year at Dec. 31, 2019 | $ 1,510,208 | $ 196,894 | $ 397,210 | $ 1,070,688 | $ 330 | $ (155,146) | $ 1,509,976 | $ 232 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2019 | |
GENERAL [Abstract] | |
GENERAL | 1. ORGANIZATION AND BUSINESS Historical Structure of the Company Frontline Ltd., the Company or Frontline, is an international shipping company incorporated in Bermuda as an exempted company under the Bermuda Companies Law of 1981 on June 12, 1992. The Company's ordinary shares are listed on the New York Stock Exchange and the Oslo Stock Exchange under the symbol of "FRO". On July 1, 2015, the Company, Frontline Acquisition Ltd, or Frontline Acquisition, a newly formed and wholly owned subsidiary of the Company, and Frontline 2012 Ltd, or Frontline 2012, entered into an agreement and plan of merger, (as amended from time to time, the "Merger Agreement") pursuant to which Frontline Acquisition and Frontline 2012 agreed to enter into a merger transaction, or the Merger, with Frontline 2012 as the surviving legal entity and thus becoming a wholly owned subsidiary of the Company. For accounting purposes, the acquisition of Frontline 2012 has been treated as a reverse business acquisition. The Merger was completed on November 30, 2015 and shareholders in Frontline 2012 received shares in the Company as merger consideration. One share in Frontline 2012 gave the right to receive 2.55 shares in the Company and 583.6 million shares were issued as merger consideration based on the total number of Frontline 2012 shares of 249.1 million less 6.8 million treasury shares held by Frontline 2012 and 13.46 million Frontline 2012 shares held by the Company, which were cancelled upon completion of the Merger. Business The Company operates oil tankers of two sizes: VLCCs, which are between 200,000 and 320,000 dwt, and Suezmax tankers, which are vessels between 120,000 and 170,000 dwt, and operates LR2/Aframax tankers, which are clean product tankers, and range in size from 111,000 to 115,000 dwt. The Company operates through subsidiaries located in Bermuda, India, Liberia, the Marshall Islands, Norway, the United Kingdom and Singapore. The Company is also involved in the charter, purchase and sale of vessels. As of December 31, 2019, the Company's fleet consisted of 71 vessels, with an aggregate capacity of approximately 13.5 million DWT. The Company's fleet consisted of: (i) 48 vessels owned by the Company ( 14 VLCCs, 16 Suezmax tankers and 18 LR2/Aframax tankers), (ii) three VLCCs that are under finance leases, (iii) 10 Suezmax tankers to be acquired under the Sale and Purchase Agreement, or the SPA, with Trafigura Maritime Logistics, or TML, a wholly owned subsidiary of Trafigura Group Pte Ltd, or Trafigura, five of which are currently recorded under finance leases and five of which will be recorded on closing of the Acquisition, (see Note 5. to our consolidated financial statements for a detailed description of the accounting for this transaction) (iv) one VLCC that is recorded as an investment in a finance lease, (v) two VLCCs chartered-in from an unrelated third party, and (vi) seven vessels that are under the Company's commercial management ( three VLCCs, two Suezmax tankers and two Aframax oil tankers). Furthermore, as of December 31, 2019, the Company’s newbuilding program comprised one Suezmax tanker and one VLCC, which are expected to be delivered in April and May 2020, respectively, and four LR2 tankers, which are expected to be delivered in January 2021, March 2021, October 2021 and January 2022. |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
ACCOUNTING POLICIES | 2. ACCOUNTING POLICIES Basis of presentation Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. The consolidated financial statements include the assets and liabilities of us and our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. Investments in companies over which the Company has the ability to exercise significant influence, but does not control, are accounted for using the equity method. The Company records its investments in equity-method investees in the consolidated balance sheets as "Investment in associated companies" and its share of the investees' earnings or losses in the consolidated statements of operations as "Share of results of associated companies". The excess, if any, of purchase price over book value of the Company's investments in equity method investees is included in the accompanying consolidated balance sheets in "Investment in associated companies". Use of estimates The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Such estimates and assumptions impact, among others, the following: vessels and obligations under finance leases, the amount of uncollectible accounts and accounts receivable, the amount to be paid for certain liabilities, including contingent liabilities, the amount of costs to be capitalized in connection with the construction of our newbuildings and the lives of our vessels. Actual results could differ from those estimates. Fair values We have determined the estimated fair value amounts presented in these consolidated financial statements using available market information and appropriate methodologies. However, considerable judgment is required in interpreting market data to develop the estimates of fair value. The estimates presented in these consolidated financial statements are not necessarily indicative of the amounts that we could realize in a current market exchange. Estimating the fair value of assets acquired and liabilities assumed in a business combination requires the use of estimates and significant judgments, among others, the following: the expected revenues earned by vessels held under finance lease and the operating costs (including drydocking costs) of those vessels, the expected contingent rental expense, if applicable, to be included in obligations under finance lease, the discount rate used in cash flow based valuations, the market assumptions used when valuing acquired time charter contracts and the value of contingent claims. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. Principles of consolidation The consolidated financial statements include the accounts for us and our wholly owned subsidiaries. Intercompany accounts and transactions have been eliminated on consolidation. The operating results of acquired companies are included in our Consolidated Statement of Operations from the date of acquisition. For investments in which we own 20% to 50% of the voting shares and have significant influence over the operating and financial policies, the equity method of accounting is used. Accordingly, our share of the earnings and losses of these companies are included in the share of results from associated company and gain on equity interest in the accompanying Consolidated Statements of Operations. Foreign currency translation Our functional currency is the U.S. dollar. Exchange gains and losses on translation of our net equity investments in subsidiaries are reported as a separate component of accumulated other comprehensive loss in shareholders’ equity. Foreign currency transaction gains and losses are recorded in the Consolidated Statement of Operations. Cash and cash equivalents For the purposes of the Consolidated Balance Sheet and the Consolidated Statement of Cash Flows, all demand and time deposits and highly liquid, low risk investments with original maturities of three months or less are considered equivalent to cash. Restricted cash Restricted cash consists of cash, which may only be used for certain purposes and is held under a contractual arrangement. Marketable securities Marketable equity securities held by the Company are considered to be available-for-sale securities and as such are carried at fair value. Any resulting unrealized gains and losses, net of deferred taxes if any, are recorded as a separate component of other comprehensive income in equity unless the securities are considered to be other than temporarily impaired, in which case unrealized losses are recorded in the Consolidated Statement of Operations for the year ended December 31, 2017. In 2018, the Company adopted the targeted improvements to ASC 825-10 Recognition and Measurement of Financial Assets and Liabilities. The Company adopted the new guidance using the modified retrospective method, with no changes recognized in the prior year comparatives and a cumulative catch up adjustment recognized in the opening retained deficit. As a result of the adoption of this guidance the Company records the movement in the fair value of Marketable Securities in the Consolidated Statement of Operations. Inventories Inventories comprise principally of fuel and lubricating oils and are stated at the lower of cost and net realizable value. Cost is determined on a first-in, first-out basis. Vessels and equipment The cost of the vessels less estimated residual value is depreciated on a straight-line basis over the vessels' estimated remaining economic useful lives. The estimated economic useful life of the Company's vessels is 25 years. Other equipment, excluding vessel upgrades, is depreciated over its estimated remaining useful life, which approximates five years. The residual value for owned vessels is calculated by multiplying the lightweight tonnage of the vessel by the market price of scrap per tonne. The market price of scrap per tonne is calculated as the ten year average, up to the date of delivery of the vessel, across the three main recycling markets (Far East, Indian sub continent and Bangladesh). Residual values are reviewed annually. The Company capitalizes and depreciates the costs of significant replacements, renewals and upgrades to its vessels over the shorter of the vessel’s remaining useful life or the life of the renewal or upgrade. The amount capitalized is based on management’s judgment as to expenditures that extend a vessel’s useful life or increase the operational efficiency of a vessel. Costs that are not capitalized are recorded as a component of direct vessel operating expenses during the period incurred. Expenses for routine maintenance and repairs are expensed as incurred. Advances paid in respect of vessel upgrades in relation to EGCS and BWTS are included within "other long-term assets", until such time as the equipment is installed on a vessel, at which point it is transferred to "Vessels and equipment, net". Vessels and equipment under finance lease The Company classifies a lease as a finance lease when the lease meets any of the following criteria at lease commencement: • The lease transfers ownership of the underlying asset to the lessee by the end of the lease term. • The lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise. • The lease term is for the major part of the remaining economic life of the underlying asset. However, if the commencement date falls at or near the end of the economic life of the underlying asset, this criterion shall not be used for purposes of classifying the lease. • The present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the underlying asset. • The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. When none of these criteria are met the Company classifies the lease as an operating lease. At the commencement date, Frontline shall recognize a lease liability at the present value of the lease payments not yet paid, discounted using the discount rate for the lease at lease commencement and a right-of-use asset. The right-of-use asset shall consist of all of the lease liability, any lease payments made to the lessor at or before the commencement date, minus any lease incentives received, and any initial direct costs incurred by the lessee. Each lease payment is allocated between liability and finance charges to achieve a constant rate on the balance outstanding. The interest element of the finance cost is charged to the Consolidated Statement of Operations over the lease period. Three of the Company's finance leases were acquired as a result of the Merger and contain a profit share (contingent rental expense), which was reflected in the fair valuation of the obligations under finance lease at the date of the Merger. Any variations in the estimated profit share expense as compared to actual profit share expense incurred is accounted for as contingent rental income or expense and is recorded in the Consolidated Statement of Operations in the period in which it becomes realizable. Depreciation of vessels and equipment under finance lease is included within "Depreciation" in the Consolidated Statement of Operations. Vessels and equipment under finance lease are depreciated on a straight-line basis from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. However, if the lease transfers ownership of the underlying asset to the Company or the Company is reasonably certain to exercise an option to purchase the underlying asset, the Company depreciates the right-of-use asset to the end of the useful life of the underlying asset. Upon termination of a finance lease, any remaining assets and obligations related to the vessel are written off to the Statement of Operations. The net position, including any termination payments, are presented in Other operating gains (losses). Vessels and equipment under operating lease The Company as lessee currently has two major categories of operating leases: chartered-in vessels and leased office and other space. The Company recognizes right-of-use assets and corresponding lease liabilities for its operating leases. The Company has not elected the practical expedient to not separate lease and non-lease components for all of our leases where we are the lessee. ASC 842 also allows lessees to elect as an accounting policy not to apply the provisions of ASC 842 to short-term leases (i.e., leases with an original term of 12-months or less). Instead, a lessee may recognize the lease payments in profit or loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred. The accounting policy election for short-term leases shall be made by class of underlying asset to which the right of use relates. The Company has elected not to apply the provisions of ASC 842 to short-term leases. Where the Company is lessee, operating lease expense is recognized on a straight-line basis over the lease term. In determining the appropriate discount rate to use in calculating the present value of the Company’s contractual lease payments, the Company makes significant judgments and assumptions to estimate the incremental borrowing rate, or IBR, as the rate implicit in the Company’s leases cannot be readily determined. The incremental borrowing rate is defined as the rate of interest that a lessee would have to pay to borrow on a 100% collateralized basis over a term similar to the lease term and amount equal to the lease payments in a similar economic environment. The Company makes significant judgments and assumptions to separate lease components from non-lease components of our contracts. For purposes of determining the standalone selling price of the vessel lease and non-lease components of the Company’s time charters and voyage charters, the Company uses the residual approach given that vessel rates are highly variable depending on shipping market conditions. The Company believes that the standalone transaction price attributable to the non-lease component is more readily determinable than the price of the lease component and, accordingly, the price of the service components is estimated using cost plus a margin and the residual transaction price is attributed to the lease component. Newbuildings The carrying value of the vessels under construction, or newbuildings, represents the accumulated costs to the balance sheet date which the Company has had to pay by way of purchase installments and other capital expenditures together with capitalized interest and associated finance costs. No charge for depreciation is made until the vessel is available for use. Goodwill and impairment of goodwill Goodwill arising from a business combination, being the value of purchase consideration in excess of amounts allocable to identifiable assets and liabilities is not amortized and is subject to annual review for impairment or more frequently should indications of impairment arise. For purposes of performing the impairment test of goodwill, we have established that the Company has one reporting unit: tankers. Impairment of goodwill in excess of amounts allocable to identifiable assets and liabilities is determined using a two-step approach, initially based on a comparison of the fair value of the reporting unit to the book value of its net assets; if the fair value of the reporting unit is lower than the book value of its net assets, then the second step compares the implied fair value of the Company's goodwill with its carrying value to measure the amount of the impairment. The Company has selected September 30 as its annual goodwill impairment testing date. Goodwill is tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Interest expense Interest costs are expensed as incurred except for interest costs that are capitalized. Interest expenses are capitalized during construction of newbuildings based on accumulated expenditures for the applicable project at the Company's current rate of borrowing. The amount of interest expense capitalized in an accounting period shall be determined by applying an interest rate, or the capitalization rate, to the average amount of accumulated expenditures for the asset during the period. The capitalization rates used in an accounting period shall be based on the rates applicable to borrowings outstanding during the period. The Company does not capitalize amounts beyond the actual interest expense incurred in the period. If the Company's financing plans associate a specific new borrowing with a qualifying asset, the Company uses the rate on that borrowing as the capitalization rate to be applied to that portion of the average accumulated expenditures for the asset that does not exceed the amount of that borrowing. If average accumulated expenditures for the asset exceed the amounts of specific new borrowings associated with the asset, the capitalization rate to be applied to such excess shall be a weighted average of the rates applicable to other borrowings of the Company. Impairment of long-lived assets The carrying values of long-lived assets held and used by the Company and newbuildings are reviewed whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Such indicators may include depressed spot rates, depressed secondhand tanker values and issues at the shipyard. The Company assesses recoverability of the carrying value of each asset or newbuilding on an individual basis by estimating the future net cash flows expected to result from the asset, including eventual disposal. In developing estimates of future cash flows, the Company must make assumptions about future performance, with significant assumptions being related to charter rates, ship operating expenses, utilization, drydocking requirements, residual values, the estimated remaining useful lives of the vessels and the probability of lease terminations. These assumptions are based on historical trends as well as future expectations. If the future net undiscounted cash flows are less than the carrying value of the asset, or the current carrying value plus future newbuilding commitments, an impairment loss is recorded equal to the difference between the asset's or newbuildings carrying value and fair value. In addition, long-lived assets to be disposed of are reported at the lower of carrying amount and fair value less estimated costs to sell. Deferred charges Loan costs, including debt arrangement fees, are capitalized and amortized on a straight-line basis over the term of the relevant loan. The straight line basis of amortization approximates the effective interest method. Amortization of loan costs is included in interest expense. If a loan is repaid early, any unamortized portion of the related deferred charges is charged against income in the period in which the loan is repaid. The Company has recorded debt issuance costs (i.e. deferred charges) as a direct deduction from the carrying amount of the related debt. Trade accounts receivable Trade and other receivables are presented net of allowances for doubtful balances. If amounts become uncollectible, they are charged against income when that determination is made. Revenue and expense recognition The Company recognizes revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled for those goods or services. To do so, the Company performs the following five steps: (1) identifies the contract(s) with a customer; (2) identifies the performance obligations of the contract; (3) determines the transaction price; (4) allocates the transaction price to the performance obligations in the contract; and (5) recognizes revenue when (or as) the Company satisfies a performance obligation. Our shipping revenues are primarily generated from time charters and voyage charters. In a time charter voyage, the vessel is hired by the charterer for a specified period of time in exchange for consideration which is based on a daily hire rate. Generally, the charterer has the discretion over the ports visited, shipping routes and vessel speed. The contract/charter party generally provides typical warranties regarding the speed and performance of the vessel. The charter party generally has some owner protective restrictions such that the vessel is sent only to safe ports by the charterer and carries only lawful or non hazardous cargo. In a time charter contract, we are responsible for all the costs incurred for running the vessel such as crew costs, vessel insurance, repairs and maintenance and lubes. The charterer bears the voyage related costs such as bunker expenses, port charges, canal tolls during the hire period. The performance obligations in a time charter contract are satisfied over term of the contract beginning when the vessel is delivered to the charterer until it is redelivered back to us. The charterer generally pays the charter hire in advance of the upcoming contract period. Time charter contracts, bareboat contracts and the lease component in those voyage charter contracts which we consider to be leases are accounted for under ASC 840 Leases up until December 31, 2018 and under ASC 842 leases thereafter, and revenues are recorded over the term of the charter as a service is provided. When a time charter contract is linked to an index, we recognize revenue for the applicable period based on the actual index for that period. In a voyage charter contract, the charterer hires the vessel to transport a specific agreed-upon cargo for a single voyage. The consideration in such a contract is determined on the basis of a freight rate per metric ton of cargo carried or occasionally on a lump sum basis. The charterer is responsible for any short loading of cargo or "dead" freight. The voyage charter party generally has standard payment terms with freight paid on completion of discharge. The voyage charter party generally has a "demurrage" clause. As per this clause, the charterer reimburses us for any potential delays exceeding the allowed laytime as per the charter party clause at the ports visited, which is recorded as voyage revenue, as such, demurrage is considered variable consideration under the contract. Estimates and judgments are required in ascertaining the most likely outcome of a particular voyage and actual outcomes may differ from estimates. Such estimates are reviewed and updated over the term of the voyage charter contract. In a voyage charter contract, the performance obligations begin to be satisfied once the vessel begins loading the cargo. The Company has determined that its voyage charter contracts, that qualify for accounting under ASC 606, consist of a single performance obligation of transporting the cargo within a specified time period. Therefore, the performance obligation is met evenly as the voyage progresses, and the revenue is recognized on a straight line basis over the voyage days from the commencement of loading to completion of discharge. Contract assets with regards to voyage revenues are reported as "Voyages in progress" as the performance obligation is satisfied over time. Voyage revenues typically become billable and due for payment on completion of the voyage and discharge of the cargo, at which point the receivable is recognized as "Trade accounts receivable, net". In a voyage contract, the Company bears all voyage related costs such as fuel costs, port charges and canal tolls. To recognize costs incurred to fulfill a contract as an asset, the following criteria shall be met: (i) the costs relate directly to the contract, (ii) the costs generate or enhance resources of the entity that will be used in satisfying performance obligations in the future and (iii) the costs are expected to be recovered. The costs incurred during the period prior to commencement of loading the cargo, primarily bunkers, are deferred as they represent setup costs and recorded as a current asset and are subsequently amortized on a straight-line basis as we satisfy the performance obligations under the contract. Costs incurred to obtain a contract, such as commissions, are also deferred and expensed over the same period. Costs incurred during the performance of a voyage are expensed as incurred. For our vessels operating under revenue sharing agreements, or in pools, revenues and voyage expenses are pooled and allocated to each pool’s participants on a time charter equivalent income, or TCE, basis in accordance with an agreed-upon formula. Revenues generated through revenue sharing agreements are presented gross when we are considered the principal under the charter parties with the net income allocated under the revenue sharing agreement presented as other operating income, net. For revenue sharing agreements that meet the definition of a lease, we account for such contracts as variable rate operating leases and recognize revenue for the applicable period based on the actual net revenue distributed by the pool. Rental payments from the Company's sales-type lease are allocated between lease service revenue, lease interest income and repayment of net investment in leases. The amount allocated to lease service revenue is based on the estimated fair value, at the time of entering the lease agreement, of the services provided which consist of ship management and operating services. Other income primarily comprises income earned from the commercial and technical management of related party and third party vessels and newbuilding supervision fees derived from related parties and third parties. Other revenues are recognized over time on a straight line basis using the accruals method as the services are provided and performance obligations are met. Other operating (losses) gains Other operating (losses) gains relate to (i) gains and losses on the termination of finance leases before the expiration of the lease term, which are accounted for by removing the carrying value of the asset and obligation, with a gain or loss recognized for the difference. Gains and losses on the termination of leases are accounted for when the lease is terminated and the vessel is redelivered to the owners, (ii) gains and losses on the sale of vessels, which are recognized when the vessel has been delivered and all risks have been transferred and are determined by comparing the proceeds received with the carrying value of the vessel and (iii) gains or losses from pooling and other revenue sharing arrangements where the Company is considered the principal under the charter parties and records voyage revenues and costs gross, with the adjustments required as a result of the revenue sharing arrangement being recognized as other operating gains or losses. Drydocking Normal vessel repair and maintenance costs are expensed when incurred. The Company recognizes the cost of a drydocking at the time the drydocking takes place, that is, it applies the "expense as incurred" method. Contingent rental income (expense) Contingent rental income (expense) results from the Company's finance leases acquired as a result of the Merger. Any variations in the estimated profit share expense that was included in the fair valuation of these lease obligations on the date of the Merger as compared to actual profit share expense incurred is accounted for as contingent rental income (expense). Any contingent rental expense on operating leases is recorded as charter hire expense. When a lease is terminated, the estimated profit share included with the lease obligation, as calculated at the time of the Merger, is written off to other operating gains or losses in the Consolidated Statement of Operations. Financial instruments In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each balance sheet date. All methods of assessing fair value result in a general approximation of value, and such value may never actually be realized. Derivatives Interest rate and bunker swaps The Company enters into interest rate and bunker swap transactions from time to time to hedge a portion of its exposure to floating interest rates and movements in bunker prices. These transactions involve the conversion of floating rates into fixed rates over the life of the transactions without an exchange of underlying principal. The fair values of the interest rate and bunker swap contracts are recognized as assets or liabilities. None of the interest rate and bunker swaps qualify for hedge accounting and changes in fair values are recognized in 'gain (loss) on derivatives' in the Consolidated Statement of Operations. Cash outflows and inflows resulting from derivative contracts are presented as cash flows from operations in the Consolidated Statement of Cash Flows. Earnings per share Basic earnings per share is computed based on the income available to ordinary shareholders and the weighted average number of shares outstanding. Diluted earnings per share includes the effect of the assumed conversion of potentially dilutive instruments. ASC 260 defines issued shares that are held in escrow and all or part must be returned if specified conditions are not met as "contingently returnable" and as such are omitted from the calculation of basic earnings per share. Such shares are included in diluted earnings per share. Share-based compensation The Company accounts for share-based payments in accordance with ASC Topic 718 "Compensation – Stock Compensation", under which the fair value of issued stock options is expensed over the period in which the options vest. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | 3. RECENT ACCOUNTING PRONOUNCEMENTS In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which revises guidance for the accounting for credit losses on financial instruments within its scope. The new standard introduces an approach, based on expected losses, to estimate credit losses on certain types of financial instruments and modifies the impairment model for available-for-sale debt securities. In April 2019, the FASB issued ASU No. 2019-04, Codification improvements to Financial instruments-Credit Losses, (Topic 326) , which includes amendments related to the estimate of equity method losses. In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Losses , which clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases . The accounting standard updates are effective January 1, 2020. Entities are required to apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. Based on the Company's evaluation, these standard updates will not materially impact its consolidated financial statements and related disclosures on adoption. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and other (Topic 350), which simplifies the test for goodwill impairment. The accounting update eliminates Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of the assets acquired and liabilities assumed in a business combination. Instead an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, however the loss recognized should not exceed the total amount of goodwill allocated to the reporting unit. The accounting standard update is effective January 1, 2020. The Company will apply the one step approach in our quantitative assessments thereafter which may result in the recognition of impairment losses sooner as compared to the two-step impairment test. Management does not expect the adoption of this accounting standard to have a material impact on the Company’s consolidated financial statements on adoption. In August 2018, the FASB issued ASU 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This update removes, modifies and adds specific disclosure requirements in relation to fair value measurement with the aim of improving the effectiveness of disclosures to the financial statements. The accounting standard update is effective January 1, 2020 and the Company will disclose the required information in our consolidated financial statements and related disclosures thereafter. Management does not expect the adoption of this accounting standard to have a material impact on the Company’s consolidated financial statements In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808) , to provide clarity on when transactions between entities in a collaborative arrangement should be accounted for under the new revenue standard, ASC 606. In determining whether transactions in collaborative arrangements should be accounted under the revenue standard, the update specifies that entities shall apply unit of account guidance to identify distinct goods or services and whether such goods and services are separately identifiable from other promises in the contract. The accounting update also precludes entities from presenting transactions with a collaborative partner which are not in scope of the new revenue standard together with revenue from contracts with customers. The accounting standard update is effective January 1, 2020 and the adoption of the accounting standard update is not expected to have a material impact on our consolidated financial statements and related disclosures. Accounting Standards Updates, recently adopted ASC 842 (Leases) The Company has adopted ASC 842 effective January 1, 2019 using the modified retrospective transition approach, which allows the Company to recognize a cumulative effect adjustment to the opening balance of accumulated deficit in the period of adoption rather than restate our comparative prior year periods. Based on the Company's analysis, the cumulative effect adjustment to the opening balance of accumulated deficit is zero because (i) the Company did not have any unamortized initial direct costs as of January 1, 2019 that needed to be written off; (ii) the Company did not have any lease incentives or accrued rental transactions that needed to be recognized; and (iii) the timing and pattern of revenue recognition under its revenue contracts that have lease and non-lease components is the same and even if accounted for separately, the lease component of such contracts would be considered operating leases. Upon adoption of ASC 842, the Company has recognized right-of-use assets and corresponding lease liabilities of $18.5 million on the balance sheet in relation to our operating leases, which have then been amortized during the year ended December 31, 2019. The implementation of this standard has not caused a material change in the Company's operating expenses in the fiscal year 2019. For arrangements where we are the lessor, the adoption of the new lease standard has not had a material impact on our financial statements. ASU 2018-07 (ASC 718 Compensation - Stock Compensation) The Company has adopted this update effective January 1, 2019. The amendments in this update expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. An entity should apply the requirements of Topic 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost (that is, the period of time over which share-based payment awards vest and the pattern of cost recognition over that period). The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers. Consistent with the accounting requirement for employee share-based payment awards, nonemployee share-based payment awards within the scope of Topic 718 are measured at grant-date fair value of the equity instruments that an entity is obligated to issue when the good has been delivered or the service has been rendered and any other conditions necessary to earn the right to benefit from the instruments have been satisfied. Equity-classified nonemployee share- based payment awards are measured at the grant date. The definition of the term grant date was also amended to generally state the date at which a grantor and a grantee reach a mutual understanding of the key terms and conditions of a share-based payment award. Consistent with the accounting for employee share-based payment awards, an entity considers the probability of satisfying performance conditions when nonemployee share-based payment awards contain such conditions. An entity should only remeasure liability-classified awards that have not been settled by the date of adoption and equity-classified awards for which a measurement date has not been established through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. Upon transition, the entity is required to measure these nonemployee awards at fair value as of the adoption date. No such remeasurement is required upon adoption of the Update by the Company. The revised definition of the grant date of share-based awards has been applied in accounting for the share consideration transferred to Trafigura on signing of the SPA. The shares have been accounted for as prepaid consideration at the grant date when a mutual understanding of the key terms and conditions for the issuance is reached on signing of the SPA and furthermore the shares are legally issued to Trafigura. Further details of the accounting for the transaction are disclosed in Note 5. ASU No. 2014-09 (ASC 606 Revenue from Contracts with Customers) In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, or ASC 606, which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. We adopted the provisions of ASC 606 on January 1, 2018 using the modified retrospective approach. As such, the comparative information has not been restated and continues to be reported under the accounting standards in effect for periods prior to January 1, 2018. Under the modified retrospective approach, we recognized the cumulative effect of adopting this standard as a net adjustment amounting to $16.6 million to increase the opening balance of Accumulated Deficit as of January 1, 2018. ASC 606 has been applied to those contracts that were not completed at the date of initial application. The cumulative effect of the adjustments made to our condensed consolidated statement position at January 1, 2018 from the adoption of ASC 606 was as follows: Condensed Consolidated Balance Sheet (in thousands of $) December 31, 2017 Adjustments for ASC 606 January 1, 2018 Assets Voyages in progress 38,254 (20,303 ) 17,951 Other current assets 13 3,071 3,084 Liabilities Accrued expenses 38,809 (601 ) 38,208 Equity Accumulated deficit (272,503 ) (16,631 ) (289,134 ) The impact of the adoption of ASC 606 on our condensed consolidated balance sheets, condensed consolidated income statements of operations and condensed consolidated statements of cash flow for 2018 were as follows: Condensed Consolidated Statement of Financial Position Balance at December 31, 2018 (in thousands of $) As reported Adjustments for ASC 606 Balance without ASC 606 Assets Voyages in progress 59,437 (31,850 ) 91,287 Other current assets 5,359 5,410 (51 ) Liabilities Accrued expenses 37,031 (959 ) 37,990 Equity Accumulated deficit (295,118 ) (25,481 ) (269,637 ) Condensed Consolidated Income Statement For the period ended December 31, 2018 (in thousands of $) As reported Adjustments for ASC 606 Balance without ASC 606 — Voyage charter revenues 690,901 (11,548 ) 702,449 Voyage expenses and commission 377,772 (2,698 ) 380,470 Net (loss) income (8,398 ) (8,850 ) 452 Basic and diluted loss per share attributable to the Company (0.05 ) 0.05 — Condensed Consolidated Statement of Cash Flows For the period ended December 31, 2018 (in thousands of $) As reported Adjustments for ASC 606 Balance without ASC 606 Net loss (8,398 ) (8,850 ) 452 Change in operating assets and liabilities (38,695 ) 8,850 (47,545 ) Net cash provided by operating activities 46,171 — 46,171 In accordance with ASC 606, we have applied the practical expedient not to disclose the aggregate amount of the transaction price allocated to the remaining performance obligations, or when the Company expects to recognize this as revenue for these contracts given that the original expected contract duration is less than one year. In accordance with ASC 606, we have applied the available exemptions not to disclose the nature of performance obligations and the remaining duration of performance obligations. Time charter contracts are considered operating leases and therefore do not fall under the scope of ASC 606 because (i) the vessel is an identifiable asset (ii) we do not have substantive substitution rights and (iii) the charterer has the right to control the use of the vessel during the term of the contract and derives the economic benefits from such use. Time charter contracts and other contracts considered to be leases continue to be accounted as operating leases in accordance with ASC 840 Leases up until December 31, 2018 and under ASC 842 leases thereafter and related interpretations. The implementation of the new revenue standard therefore did not have an effect on income recognition from such contracts or on the lease component from such contracts. Since the Company has used the modified retrospective method for adopting ASC 606, the prior years have not been restated, therefore the provisions of ASC 605 remain applicable for these periods. Under ASC 605, the following critical accounting policies were applicable: Revenues and expenses were recognized on the accruals basis. Voyage revenues were recognized ratably over the estimated length of each voyage and, therefore, are allocated between reporting periods based on the relative transit time in each period. Voyage expenses were recognized as incurred. The Company previously used a discharge-to-discharge basis in determining percentage of completion for all spot voyages and voyages servicing contracts of affreightment whereby it recognized revenue ratably from when product is discharged at the end of one voyage to when it is discharged after the next voyage. However, the Company did not recognize revenue if a charter has not been contractually committed to by a customer and the Company, even if the vessel has discharged its cargo and was sailing to the anticipated load port on its next voyage. Revenues and voyage expenses of the vessels operating in pool arrangements are pooled and the resulting net pool revenues, calculated on a time charter equivalent basis, are allocated to the pool participants according to an agreed formula on the basis of the number of days a vessel operates in the pool. The pool participants are responsible for paying voyage expenses. Adjustments between the pool participants are settled on a quarterly basis. Pool revenues are reported as voyage charter revenues for all periods presented. Rental payments from the Company's sales-type lease are allocated between lease service revenue, lease interest income and repayment of net investment in leases. The amount allocated to lease service revenue is based on the estimated fair value, at the time of entering the lease agreement, of the services provided which consist of ship management and operating services. In January 2016, the FASB issued ASU 2016-01 Financial instruments, Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in this update require all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). The amendments in this update also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition, the amendments in this update eliminate the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities and the requirement for to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet for public business entities. As a result of the adoption of the standard, we present the change in the fair value of our marketable equity securities in our consolidated statements of operations. In our opening balance at January 1, 2018, we recognized a decrease of $2.9 million in accumulated deficit. In 2018, we recognized a mark to market loss of $3.5 million of these equity securities. In August 2016, the FASB issued ASU No. 2016-15, Statement of cash flows (Topic 230): Classification of certain cash receipts and cash payments. This ASU addresses the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (COLIs) (including bank-owned life insurance policies (BOLIs)); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. When a reporting entity applies the equity method of accounting to an investment it should make a policy election to classify distributions received from the equity method investee as follows: • Cumulative earnings approach - distributions received are considered returns on investment and classified as cash inflows from operating activities unless the investor's cumulative distributions received in prior periods exceed the cumulative equity in earnings of the investee. when such an excess occurs the current period distribution up to this excess should be classified as a cash inflow from investing activity. • Nature of distribution approach - distributions received should be classified based on the nature of the activity of the investee that generated the distribution as either a return of investments (cash inflow from investing activity) or a return on investment (cash inflow from operating activities) The amendments in this Update were applied using a retrospective transition method to each period presented. The adoption of this Update did not have a significant impact on these condensed consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of cash flows (Topic 230): Restricted Cash. The new standard requires that the statement of cash flows explains the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The amendments in this Update were applied using a retrospective transition method to each period presented. As a result of the adoption of the standard, we have classified restricted cash as a component of cash, cash equivalents and restricted cash in the consolidated statements of cash flows for all periods presented. In the beginning of period 2018 and 2017 balances, restricted cash of $1.4 million and $0.7 million , respectively, have been aggregated with cash and cash equivalents in the beginning of period line items at the bottom of the statements of cash flows for each period presented. The adoption of this Update did not have a significant impact on these condensed consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting. The update provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The amendments in this Update did not have a material impact on our consolidated financial statements and related disclosures upon adoption. |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | 4. GOODWILL (in thousands of $) Goodwill Accumulated impairment losses Net carrying value Balance as of December 31, 2017 225,273 (112,821 ) 112,452 Balance as of December 31, 2018 225,273 (112,821 ) 112,452 Balance as of December 31, 2019 225,273 (112,821 ) 112,452 On the date of the Merger the share price of Frontline Ltd. was $15.15 , adjusted for the 1-for- 5 reverse share split in February 2016, and the Company recorded goodwill of $225.3 million . The Company has one reporting unit for the purpose of assessing potential goodwill impairment and has selected September 30 as its annual goodwill impairment testing date. At December 31, 2017, the Company's share price had fallen by $1.45 per share, or 24% from its September 30, 2017 share price, and as such, the Company concluded that the requirement to complete the first step of the goodwill impairment analysis was triggered. The Company's market capitalization as at December 31, 2017 was $779.0 million (based on a share price of $4.59 ) and the Company calculated the fair value of the Company to be $1,013 million , based on an estimated control premium of 30% , compared to its carrying value of $1,300 million (prior to recording any impairment loss on goodwill). The Company believes that the control premium may be attributable, in part or in whole, to the expected synergies from combining the operations of the Company and an acquirer, particularly in respect of the benefits of operating an enlarged oil tanker fleet and assembled workforce as well as being able to take advantage of an expected reduction in costs from an expansion in scale. As the fair value of the Company was below the carrying value, the Company concluded that it was required to complete the second step of the goodwill impairment analysis. Under the second step of the goodwill impairment analysis, the Company estimated that the fair value of the underlying assets and liabilities amount to approximately $901.0 million , which gives an implied fair value of goodwill of $112.5 million . A comparison of this to the carrying value of goodwill resulted in an impairment loss in respect of goodwill of $112.8 million . The impairment was a result of the declining forecast charter rates, declining vessel values and ultimately the fall in the Company's share price since the date of the Merger. At June 30, 2018, September 30, 2018 and December 31, 2018, the Company carried out the first step of the two step impairment analysis. At March 31, 2018, the Company carried out the second step of the two step impairment test. The Company concluded that no impairment was required following these impairment tests. During the year ended December 31, 2019, the Company both assessed qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of the reporting unit is less than its carrying amount, including goodwill, as well as performing the first step of the two step impairment analysis. The Company concluded that no impairment was required following these impairment tests. |
TRAFIGURA TRANSACTION
TRAFIGURA TRANSACTION | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
TRAFIGURA TRANSACTION | 5. TRAFIGURA TRANSACTION In August 2019, the Company entered into a sale and purchase agreement with Trafigura to acquire 10 Suezmax tankers built in 2019 through the acquisition of a special purpose vehicle which will hold the vessels, or the Acquisition. The Acquisition consideration per the SPA consists of (i) 16,035,856 ordinary shares of Frontline at an agreed price of $8.00 per share issuable upon signing; and (ii) a cash amount of between $551.7 million and $538.2 million , payable upon the closing of the Acquisition, which took place on March 16, 2020. Frontline has agreed to time charter-in all the 10 vessels from Trafigura until closing of the Acquisition at a daily rate of approximately $23,000 . In addition, Frontline agreed to charter-out five of the vessels to Trafigura for a period of three years at a daily base rate of $28,400 plus 50% profit share. As part of the Acquisition, Frontline had options to acquire an additional four Suezmax tankers built in 2019 through the acquisition of a second special purpose vehicle. Frontline elected not to exercise the options in September 2019. Upon commencement of the charters for the five vessels which the Company does not charter back to Trafigura, the Company has concluded that the charter-in constitutes a finance lease, due to the obligation to purchase the underlying asset, and has recognized a right-of-use asset and finance lease obligation. The lease obligation for these vessels on signing of the agreement includes the scheduled charter payments and the cash amount to be paid on closing of between $275.9 million and $269.2 million , discounted using the rate implicit in the lease. On issuance of the shares on August 23, 2019, the Company initially recorded a prepayment of $63.5 million , based on the grant date fair value of the shares of $7.92 per share, which has subsequently been adjusted to the right-of-use asset on commencement of the leases. The SPA was executed on August 23, 2019 which was treated as the grant date as this is the date on which a mutual understanding of the key terms and conditions of the share issuance was reached. The share consideration held in escrow (see Note 8.) has not been accounted for as contingent consideration as it is subject only to general representations and warranties, and such representations and warranties were valid at the date of the transfer of the share consideration. Furthermore, legal title to the shares has transferred to Trafigura. The Company has recognized a right-of-use asset of $336.0 million and a finance lease obligation of $272.0 million in respect of these vessels as of December 31, 2019. Depreciation of $3.8 million and finance lease interest expense of $3.8 million has been recognized in the year ended December 31, 2019 in relation to these vessels. The weighted average discount rate for these finance leases is 4.36% . For the five vessels chartered back to Trafigura, the Company has determined that the charter-in of the vessels has not commenced as of December 31, 2019, as control of the right-of-use asset does not transfer to Frontline until closing of the Acquisition as a result of the lease back to Trafigura. The Company has allocated 8,017,928 of the shares issued to the purchase consideration for these vessels, which has been recognized as prepaid acquisition cost. The grant date fair value of these shares was $63.5 million , based on a share price of $7.92 , consistent with the treatment of the share consideration for the finance leases described above. In addition, the Company has a commitment to pay a cash amount ranging from $275.8 million to $269.0 million on closing of the Acquisition. The net difference between the cash amounts payable and receivable on the charter-in and charter-out of these vessels has been treated as a reduction of the transaction price for all of the vessels. Accordingly, $9.9 million of receipts, net of payments, including accrued profit share due, has not been recognized in net income and has been treated as a reduction of the Acquisition cost of the vessels. Of this, $8.2 million has been offset against prepaid consideration and $1.7 million has been recorded under the finance lease obligations. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 6. SEGMENT INFORMATION The Company and the chief operating decision maker, or CODM, measure performance based on the Company's overall return to shareholders based on consolidated net income. The CODM does not review a measure of operating result at a lower level than the consolidated group. Consequently, the Company has only one reportable segment: tankers. The tankers segment includes crude oil tankers and product tankers. The Company's management does not evaluate performance by geographical region as this information is not meaningful. No customers in the year ended December 31, 2019, individually accounted for 10% or more of the Company's consolidated operating revenues. Revenues from one customer in the year ended December 31, 2018 individually accounted for 10% or more of the Company's consolidated operating revenues in the amount of $81.1 million . No customers in the year ended December 31, 2017, individually accounted for 10% or more of the Company's consolidated operating revenues. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 7. INCOME TAXES Bermuda Under current Bermuda law, the Company is not required to pay taxes in Bermuda on either income or capital gains. The Company has received written assurance from the Minister of Finance in Bermuda that, in the event of any such taxes being imposed, the Company will be exempted from taxation until March 31, 2035 . United States For the year ended December 31, 2019, the Company did not accrue U.S. income taxes as the Company is not engaged in a U.S. trade or business and is exempted from a gross basis tax under Section 883 of the U.S. Internal Revenue Code. Under Section 863(c)(2)(A) of the Internal Revenue Code, 50% of all transportation revenue attributable to transportation which begins or ends in the United States shall be treated as from sources within the United States where no Section 883 exemption is available. Such revenue is subject to 4% tax. No revenue tax has been recorded in voyage expenses and commissions in the year ended December 31, 2019 (2018: nil , 2017: nil ). Other Jurisdictions Certain of the Company's subsidiaries in Singapore, Norway, India and the United Kingdom are subject to income tax in their respective jurisdictions. The tax paid by subsidiaries of the Company that are subject to income tax is not material to our consolidated financial statements and related disclosures. The Company does not have any unrecognized tax benefits, material accrued interest or penalties relating to income taxes. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 8. EARNINGS PER SHARE The computation of basic earnings per share is based on the weighted average number of shares outstanding during the year and net income attributable to the Company. The impact of stock options using the treasury stock method was dilutive in 2019 as the exercise price was lower than the average share price and therefore 141,000 options were included in the denominator. The impact of stock options using the treasury stock method was anti-dilutive in 2018 and 2017 as the exercise price was higher than the average share price and, therefore 1,317,000 and 1,170,000 options were excluded from the denominator in the calculation for 2018 and 2017, respectively. The 16,035,856 shares issued to Trafigura as consideration as part of the Acquisition were legally issued and outstanding as of the grant date on August 23, 2019 and are included in share capital as of December 31, 2019. Trafigura was the beneficial owner of the shares, was entitled to exercise voting rights, and was also eligible for any dividends if-and-when declared. ASC 260 defines issued shares that are held in escrow and all or part must be returned if specified conditions are not met as "contingently returnable". The shares issued as part of the Acquisition have been treated as contingently returnable shares for the purpose of calculating earnings per share while they are held in escrow until such date after November 30, 2019 that Trafigura wishes to dispose of such shares, in which case they can be removed from escrow and sold, with the proceeds being placed in a cash escrow account until closing of the Acquisition. Any shares not disposed of prior to closing of the Acquisition will remain in the escrow account until closing. As of December 31, 2019, 4,198,447 of the shares initially issued to Trafigura were disposed of from the escrow account and are now included within the denominator in the calculation of basic earnings per share. The 11,837,409 shares remaining in the escrow account are treated as contingently returnable and have been excluded from the denominator in the calculation of basic earnings per share and included in the denominator in the calculation of diluted earnings per share. The components of the numerator and the denominator in the calculation of basic and diluted earnings per share are as follows: (in thousands of $) 2019 2018 2017 Net income (loss) attributable to the Company 139,972 (8,880 ) (264,861 ) (in thousands) 2019 2018 2017 Weighted average number of shares 173,576 169,810 169,809 Dilutive effect of contingently returnable shares 5,598 — — Dilutive effect of share options 141 — — Denominator for diluted earnings per share 179,315 169,810 169,809 2019 2018 2017 Cash dividends per share declared $0.10 $0.00 $0.30 |
OPERATING REVENUES
OPERATING REVENUES | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Operating Revenues | 9. 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. The new lease standard provides a practical expedient for lessors in which the lessor may elect, by class of underlying asset, to not separate non-lease components from the associated lease component and, instead, to account for these components as a single component if both of the following are met: (1) the timing and pattern of transfer of the non-lease component(s) and associated lease component are the same and (2) the lease component, if accounted for separately, would be classified as an operating lease. When a lessor, we have elected this expedient for our time charter contracts and voyage charter contracts that qualify as leases and thus not separate the non-lease component, or service element, from the lease. Furthermore, the standard requires the Company to account for the combined component in accordance with ASC 606 revenues from contracts with customers if the non-lease components are the predominant components. Under this guidance the Company has assessed that the lease components were the predominant component for all of its time charter contracts. Furthermore, for certain of its voyage charter contracts the lease components were the predominant components. The lease and non-lease components of our revenues were as follows: (in thousands of $) Lease Non-lease Total Time charter revenues 35,433 — 35,433 Voyage charter revenues 292,720 594,775 887,495 Finance lease interest income 690 — 690 Other income — 33,704 33,704 Total 328,843 628,479 957,322 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. $5.3 million of contract assets were capitalized in the year ended December 31, 2019 (2018: $9.1 million ) as Other current assets, of which $0.8 million was amortized up to December 31, 2019 (2018: $3.7 million ), leaving a remaining balance of $4.5 million (2018: $5.4 million ) as of December 31, 2019. $5.4 million of contract assets were amortized in the year ended December 31, 2019 in relation to voyages in progress at the end of December 31, 2018. No impairment losses were recognized in the period. As at December 31, 2019 and December 31, 2018, 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 $) 2019 2018 Voyages in progress 26,021 59,437 Trade accounts receivable 42,104 52,278 Related party receivables 9,137 3,084 Other current assets 4,491 5,359 Total 81,753 120,158 The adoption of ASC 842 had no impact on operating revenues for the year ended December 31, 2019 as the timing and pattern of revenue recognition under our revenue contracts that have lease and non-lease components is not materially different even when accounted for separately under ASC 842 and ASC 606, respectively. |
OTHER OPERATING GAINS
OTHER OPERATING GAINS | 12 Months Ended |
Dec. 31, 2019 | |
GAIN ON SALE OF ASSETS AND AMORTIZATION OF DEFERRED GAINS [Abstract] | |
OTHER OPERATING GAINS | 10. OTHER OPERATING GAINS (in thousands of $) 2019 2018 2017 Insurance recoveries 3,737 — — Other gains 628 — — Gain on termination of vessel leases — 10,324 2,379 Gain (loss) on pool arrangements (943 ) (118 ) 2 3,422 10,206 2,381 In the year ended December 31, 2019, the Company recorded a $3.7 million insurance recovery for loss of hire related to an explosion on the Front Altair . A further $0.6 million gain was recognized in the year ended December 31, 2019 in relation to the settlement of miscellaneous claims. In the year ended December 31, 2019, the Company recorded a $1.5 million loss (2018: $0.2 million ) related to the pooling arrangement with SFL between two of its Suezmax tankers Front Odin and Front Njord and two SFL vessels Glorycrown and Everbright . A gain of $0.6 million was recorded in the year ended December 31, 2019 (2018: $0.1 million ) related to other pooling arrangements. In the year ended December 31, 2018, the Company terminated the leases on six VLCCs, recognizing a gain of $10.3 million . In the year ended December 31, 2017, the Company terminated the leases on two VLCCs and two Suezmax tankers, recognizing a gain of $2.4 million . Further information on the gain on termination of vessel leases can be found in Note 19. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
LEASES | 11. LEASES As of December 31, 2019 , the Company leased in three vessels (2018: three vessels) from SFL and five vessels (2018: nil ) from Trafigura on time charters classified as finance leases, see Note 19. for further details. The Company leased in two vessels (2018: two vessels) from a third party on time charters classified as operating leases. The operating leases are at fixed rates for an initial two -year period, with an option to extend for an additional year. The minimum lease payments disclosed below do not include the optional year as the Company assessed that it was not reasonably certain of extending the leases at the date the contracts were entered into. The Company has allocated the consideration due under the operating leases between the lease and non-lease components based upon the estimated stand alone price of the services provided by the owner of the vessels, which include the provision of crewing, vessel insurance, repairs and maintenance and lubes. The Company has recorded the non-lease component of $6.6 million within Ship operating expenses and has recognized the lease component of $8.5 million within Charter hire expense within the Consolidated Statement of Operations for the year end December 31, 2019. The Company is also committed to make rental payments under operating leases for office premises. Certain of these leases include variable lease elements linked to inflation indexes. Such variable payments have been estimated on the date of adoption of ASC 842 based on the index at that time and are included in the minimum lease payments. Rental expense for office premises of $2.7 million is recorded in Administrative expenses in the Consolidated Statement of Operations for the year end December 31, 2019. Rental expense The future minimum lease payments under the Company's non-cancellable operating leases as at December 31, 2019 are as follows: (in thousands of $) 2020 5,412 2021 2,039 2022 1,707 2023 1,578 2024 1,567 Thereafter 1,186 Total minimum lease payments 13,489 Less: Imputed interest (1,012 ) Present value of operating lease liabilities 12,477 The future minimum lease payments under the Company's non-cancellable operating leases as at December 31, 2018 are as follows: (in thousands of $) 2019 17,348 2020 6,682 2021 550 2022 181 2023 41 Thereafter — 24,802 Total expense for operating leases was $11.2 million , $23.2 million and $21.2 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Cash paid for amounts included in operating lease liabilities was $10.8 million in the year ended December 31, 2019. The weighted-average discount rate based on the Company's IBR in relation to the operating leases was 3.9% for the year ended December 31, 2019 and the weighted-average remaining lease term was four years as of December 31, 2019. Rental income One LR2 tanker and one Suezmax tanker were on fixed rate time charters at December 31, 2019 (2018: one LR2 tanker). Two Suezmax tankers were on fixed rate time charters with profit share clauses at December 31, 2019 (2018: nil vessels). In addition, the Company agreed to charter-out five Suezmax tankers to Trafigura under the SPA, for a period of three years at a daily base rate of $28,400 plus 50% profit share. For accounting purposes the leases do not commence until closing of the transaction (see Note 5.) which took place on March 16, 2020. The minimum lease rental income for these five vessels has been included from March 16, 2020 until the end of the leases. The future minimum lease payments to be received under these contracts as of December 31, 2019 are as follows: (in thousands of $) 2020 47,709 2021 51,830 2022 28,968 2023 — 2024 — Thereafter — Total minimum lease payments 128,507 The future minimum lease payments to be received under non-cancellable operating lease contracts as of December 31, 2018 are as follows: (in thousands of $) 2019 7,037 2020 117 2021 — 2022 — 2023 — Thereafter — Total minimum lease payments 7,154 The cost and accumulated depreciation of vessels leased to third parties under time charters, excluding the five Suezmax tankers chartered-out to Trafigura, as of December 31, 2019 were $239.4 million and $47.8 million , respectively, and as of December 31, 2018 were $158.8 million and $12.3 million , respectively. Contingent rental income In July 2018, the Company entered into an agreement to charter-out one Suezmax tanker on a variable rate time charter. The Company recognized charter income of $5.2 million in the year ended December 31, 2019 (2018: $2.7 million ) in relation to this charter. In August 2019, the vessel was chartered on a fixed rate charter with profit sharing clause. Profit share income of $1.6 million was recognized in the year ended December 31, 2019 in relation to this charter. In September 2018, the Company entered into an agreement to charter-out one LR2 tanker on a variable rate time charter. The rate of hire is based on the actual earnings of the vessel, with no ceiling and no floor. The Company recognized charter income of $5.0 million including profit share in the year ended December 31, 2019 (2018: $2.4 million ) in relation to this charter. In January 2019, the Company entered into an agreement to charter-out one Suezmax tanker on a fixed rate time charter, including profit share. No profit share was recognized in the year ended December 31, 2019 in relation to this charter. |
LEASES | 11. LEASES As of December 31, 2019 , the Company leased in three vessels (2018: three vessels) from SFL and five vessels (2018: nil ) from Trafigura on time charters classified as finance leases, see Note 19. for further details. The Company leased in two vessels (2018: two vessels) from a third party on time charters classified as operating leases. The operating leases are at fixed rates for an initial two -year period, with an option to extend for an additional year. The minimum lease payments disclosed below do not include the optional year as the Company assessed that it was not reasonably certain of extending the leases at the date the contracts were entered into. The Company has allocated the consideration due under the operating leases between the lease and non-lease components based upon the estimated stand alone price of the services provided by the owner of the vessels, which include the provision of crewing, vessel insurance, repairs and maintenance and lubes. The Company has recorded the non-lease component of $6.6 million within Ship operating expenses and has recognized the lease component of $8.5 million within Charter hire expense within the Consolidated Statement of Operations for the year end December 31, 2019. The Company is also committed to make rental payments under operating leases for office premises. Certain of these leases include variable lease elements linked to inflation indexes. Such variable payments have been estimated on the date of adoption of ASC 842 based on the index at that time and are included in the minimum lease payments. Rental expense for office premises of $2.7 million is recorded in Administrative expenses in the Consolidated Statement of Operations for the year end December 31, 2019. Rental expense The future minimum lease payments under the Company's non-cancellable operating leases as at December 31, 2019 are as follows: (in thousands of $) 2020 5,412 2021 2,039 2022 1,707 2023 1,578 2024 1,567 Thereafter 1,186 Total minimum lease payments 13,489 Less: Imputed interest (1,012 ) Present value of operating lease liabilities 12,477 The future minimum lease payments under the Company's non-cancellable operating leases as at December 31, 2018 are as follows: (in thousands of $) 2019 17,348 2020 6,682 2021 550 2022 181 2023 41 Thereafter — 24,802 Total expense for operating leases was $11.2 million , $23.2 million and $21.2 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Cash paid for amounts included in operating lease liabilities was $10.8 million in the year ended December 31, 2019. The weighted-average discount rate based on the Company's IBR in relation to the operating leases was 3.9% for the year ended December 31, 2019 and the weighted-average remaining lease term was four years as of December 31, 2019. Rental income One LR2 tanker and one Suezmax tanker were on fixed rate time charters at December 31, 2019 (2018: one LR2 tanker). Two Suezmax tankers were on fixed rate time charters with profit share clauses at December 31, 2019 (2018: nil vessels). In addition, the Company agreed to charter-out five Suezmax tankers to Trafigura under the SPA, for a period of three years at a daily base rate of $28,400 plus 50% profit share. For accounting purposes the leases do not commence until closing of the transaction (see Note 5.) which took place on March 16, 2020. The minimum lease rental income for these five vessels has been included from March 16, 2020 until the end of the leases. The future minimum lease payments to be received under these contracts as of December 31, 2019 are as follows: (in thousands of $) 2020 47,709 2021 51,830 2022 28,968 2023 — 2024 — Thereafter — Total minimum lease payments 128,507 The future minimum lease payments to be received under non-cancellable operating lease contracts as of December 31, 2018 are as follows: (in thousands of $) 2019 7,037 2020 117 2021 — 2022 — 2023 — Thereafter — Total minimum lease payments 7,154 The cost and accumulated depreciation of vessels leased to third parties under time charters, excluding the five Suezmax tankers chartered-out to Trafigura, as of December 31, 2019 were $239.4 million and $47.8 million , respectively, and as of December 31, 2018 were $158.8 million and $12.3 million , respectively. Contingent rental income In July 2018, the Company entered into an agreement to charter-out one Suezmax tanker on a variable rate time charter. The Company recognized charter income of $5.2 million in the year ended December 31, 2019 (2018: $2.7 million ) in relation to this charter. In August 2019, the vessel was chartered on a fixed rate charter with profit sharing clause. Profit share income of $1.6 million was recognized in the year ended December 31, 2019 in relation to this charter. In September 2018, the Company entered into an agreement to charter-out one LR2 tanker on a variable rate time charter. The rate of hire is based on the actual earnings of the vessel, with no ceiling and no floor. The Company recognized charter income of $5.0 million including profit share in the year ended December 31, 2019 (2018: $2.4 million ) in relation to this charter. In January 2019, the Company entered into an agreement to charter-out one Suezmax tanker on a fixed rate time charter, including profit share. No profit share was recognized in the year ended December 31, 2019 in relation to this charter. |
LEASES | 11. LEASES As of December 31, 2019 , the Company leased in three vessels (2018: three vessels) from SFL and five vessels (2018: nil ) from Trafigura on time charters classified as finance leases, see Note 19. for further details. The Company leased in two vessels (2018: two vessels) from a third party on time charters classified as operating leases. The operating leases are at fixed rates for an initial two -year period, with an option to extend for an additional year. The minimum lease payments disclosed below do not include the optional year as the Company assessed that it was not reasonably certain of extending the leases at the date the contracts were entered into. The Company has allocated the consideration due under the operating leases between the lease and non-lease components based upon the estimated stand alone price of the services provided by the owner of the vessels, which include the provision of crewing, vessel insurance, repairs and maintenance and lubes. The Company has recorded the non-lease component of $6.6 million within Ship operating expenses and has recognized the lease component of $8.5 million within Charter hire expense within the Consolidated Statement of Operations for the year end December 31, 2019. The Company is also committed to make rental payments under operating leases for office premises. Certain of these leases include variable lease elements linked to inflation indexes. Such variable payments have been estimated on the date of adoption of ASC 842 based on the index at that time and are included in the minimum lease payments. Rental expense for office premises of $2.7 million is recorded in Administrative expenses in the Consolidated Statement of Operations for the year end December 31, 2019. Rental expense The future minimum lease payments under the Company's non-cancellable operating leases as at December 31, 2019 are as follows: (in thousands of $) 2020 5,412 2021 2,039 2022 1,707 2023 1,578 2024 1,567 Thereafter 1,186 Total minimum lease payments 13,489 Less: Imputed interest (1,012 ) Present value of operating lease liabilities 12,477 The future minimum lease payments under the Company's non-cancellable operating leases as at December 31, 2018 are as follows: (in thousands of $) 2019 17,348 2020 6,682 2021 550 2022 181 2023 41 Thereafter — 24,802 Total expense for operating leases was $11.2 million , $23.2 million and $21.2 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Cash paid for amounts included in operating lease liabilities was $10.8 million in the year ended December 31, 2019. The weighted-average discount rate based on the Company's IBR in relation to the operating leases was 3.9% for the year ended December 31, 2019 and the weighted-average remaining lease term was four years as of December 31, 2019. Rental income One LR2 tanker and one Suezmax tanker were on fixed rate time charters at December 31, 2019 (2018: one LR2 tanker). Two Suezmax tankers were on fixed rate time charters with profit share clauses at December 31, 2019 (2018: nil vessels). In addition, the Company agreed to charter-out five Suezmax tankers to Trafigura under the SPA, for a period of three years at a daily base rate of $28,400 plus 50% profit share. For accounting purposes the leases do not commence until closing of the transaction (see Note 5.) which took place on March 16, 2020. The minimum lease rental income for these five vessels has been included from March 16, 2020 until the end of the leases. The future minimum lease payments to be received under these contracts as of December 31, 2019 are as follows: (in thousands of $) 2020 47,709 2021 51,830 2022 28,968 2023 — 2024 — Thereafter — Total minimum lease payments 128,507 The future minimum lease payments to be received under non-cancellable operating lease contracts as of December 31, 2018 are as follows: (in thousands of $) 2019 7,037 2020 117 2021 — 2022 — 2023 — Thereafter — Total minimum lease payments 7,154 The cost and accumulated depreciation of vessels leased to third parties under time charters, excluding the five Suezmax tankers chartered-out to Trafigura, as of December 31, 2019 were $239.4 million and $47.8 million , respectively, and as of December 31, 2018 were $158.8 million and $12.3 million , respectively. Contingent rental income In July 2018, the Company entered into an agreement to charter-out one Suezmax tanker on a variable rate time charter. The Company recognized charter income of $5.2 million in the year ended December 31, 2019 (2018: $2.7 million ) in relation to this charter. In August 2019, the vessel was chartered on a fixed rate charter with profit sharing clause. Profit share income of $1.6 million was recognized in the year ended December 31, 2019 in relation to this charter. In September 2018, the Company entered into an agreement to charter-out one LR2 tanker on a variable rate time charter. The rate of hire is based on the actual earnings of the vessel, with no ceiling and no floor. The Company recognized charter income of $5.0 million including profit share in the year ended December 31, 2019 (2018: $2.4 million ) in relation to this charter. In January 2019, the Company entered into an agreement to charter-out one Suezmax tanker on a fixed rate time charter, including profit share. No profit share was recognized in the year ended December 31, 2019 in relation to this charter. |
RESTRICTED CASH
RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2019 | |
Restricted Cash [Abstract] | |
RESTRICTED CASH | 12. RESTRICTED CASH Restricted cash consists of cash, which may only be used for certain purposes and is held under a contractual arrangement. Restricted cash does not include cash balances of $38.3 million (2018: $37.9 million ), which represents 50% (2018: 50% ) of the cash required to be maintained by the financial covenants in our loan agreements. The Company is permitted to satisfy up to 50% of the cash requirement by maintaining a committed undrawn credit facility with a remaining availability of greater than 12 months. These amounts are included in Cash and cash equivalents. Furthermore, FSL, a wholly owned subsidiary of the Company and the chartering counterparty with SFL with respect to the remaining three 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 well as settling the promissory note related to the termination of the lease on Front Circassia, including accrued interest. As at December 31, 2019, the cash held by FSL of $13.1 million (2018: $3.5 million ), may solely be used for vessel operations, payment of hire to SFL or other amounts incurred under the charters and Charter Ancillary Agreement including the settlement of interest and principal due on any notes payable and any other amounts incurred in the ordinary course of business. |
INVESTMENT IN FINANCE LEASE
INVESTMENT IN FINANCE LEASE | 12 Months Ended |
Dec. 31, 2019 | |
INVESTMENT IN FINANCE LEASE [Abstract] | |
INVESTMENT IN FINANCE LEASE | 13. INVESTMENT IN FINANCE LEASE As of December 31, 2019 , one of the Company's vessels was accounted for as a sales-type lease ( 2018 : one ). The components of the investment in the sales-type lease are summarized as follows: (in thousands of $) 2019 2018 Net minimum lease payments receivable 157 11,651 Estimated residual values of leased property (unguaranteed) 10,822 10,821 Less: finance lease interest income — (690 ) Total investment in sales-type lease 10,979 21,782 Current portion 157 10,803 Long-term portion 10,822 10,979 10,979 21,782 The minimum future gross revenues to be received under the sales-type lease as of December 31, 2019 are as follows: (in thousands of $) 2020 157 2021 — 2022 — 2023 — 2024 — Thereafter — 157 The counterparty to the lease is a state-owned oil company, which the Company has deemed to have a low credit risk. |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 12 Months Ended |
Dec. 31, 2019 | |
Marketable Securities [Abstract] | |
MARKETABLE SECURITIES | 14. MARKETABLE SECURITIES Marketable securities held by the Company are listed equity securities considered to be available-for-sale securities. The cost of sale of available-for-sale marketable securities is calculated on an average cost basis. (in thousands of $) 2019 2018 Balance at the beginning of the year 836 19,231 Repurchase of marketable securities pledged to creditors 8,392 10,272 Disposals — (16,749 ) Unrealized gain (loss) 1,737 (3,526 ) Marketable securities pledged to creditors (7,323 ) (8,392 ) Total 3,642 836 The brought forward balance includes marketable securities pledged to creditors which are subsequently reclassified. Avance Gas As of December 31, 2019 , 2018 and 2017, the Company held 442,384 shares in Avance Gas. In the year ended December 31, 2018, the Company recognized an unrealized loss of $0.6 million in relation to the 0.4 million shares held in Avance Gas in the Statement of Operations. In the year ended December 31, 2019, the Company recognized an unrealized gain of $1.9 million in relation to the 0.4 million shares held in Avance Gas in the Statement of Operations. SFL As of December 31, 2019 , the Company held 73,165 (2018: 73,383 ) shares in SFL. In the year ended December 31, 2018, the Company recognized an unrealized loss of $0.4 million in relation to the 0.1 million shares held in SFL in the Statement of Operations. In the year ended December 31, 2019, the Company recognized an unrealized gain of $0.3 million in relation to the 0.1 million shares held in SFL in the Statement of Operations. Golden Ocean As of December 31, 2019 and 2018 the Company held 1,270,657 shares in Golden Ocean. In December 2018, the Company sold the shares for total proceeds of $7.7 million . At the same time the Company entered into a forward contract to repurchase 1.3 million shares of Golden Ocean in March 2019 for $7.7 million . The transaction was accounted for as a secured borrowing, with the shares retained in marketable securities pledged to creditors and a liability recorded within short-term debt for $7.6 million as of December 31, 2018. In March 2019, the Company repurchased these shares and subsequently sold them for proceeds of $6.6 million . At the same time the Company entered into a forward contract to repurchase 1.3 million shares in Golden Ocean in June 2019 for $6.6 million and as such made a net cash settlement of $1.0 million after adjustment for foreign exchange differences, this was treated as a repayment of debt. In June 2019, the Company repurchased these shares and subsequently sold them for proceeds of $6.7 million . At the same time the Company entered into a forward contract to repurchase 1.3 million shares in Golden Ocean in September 2019 for $6.7 million and as such received a net cash settlement of $0.1 million after adjustment for foreign exchange differences, this was treated as a repayment of debt. In September 2019, the Company repurchased these shares and subsequently sold them for proceeds of $7.6 million . At the same time the Company entered into a forward contract to repurchase 1.3 million shares in Golden Ocean in December 2019 for $7.6 million and as such received a net cash settlement of $1.2 million after adjustment for foreign exchange differences, this was treated as a repayment of debt. In December 2019, the Company repurchased these shares and subsequently sold them for proceeds of $7.2 million . At the same time the Company entered into a forward contract to repurchase 1.3 million shares in Golden Ocean in March 2020 for $7.2 million and as such made a net cash settlement of $0.5 million after adjustment for foreign exchange differences. This was treated as a repayment of debt. The transaction was accounted for as a secured borrowing, with the shares retained in marketable securities and a liability recorded within short-term debt for $7.3 million as of December 31, 2019. These transactions have been reported on a net basis in the Statement of Cash Flows. As of December 31, 2019, the Company held 1,270,657 shares of Golden Ocean, of which 1,260,358 were held as marketable securities pledged to creditors. In the year ended December 31, 2018, the Company recognized an unrealized loss of $2.5 million in relation to the 1.3 million shares held in Golden Ocean in the Statement of Operations. In the year ended December 31, 2019, the Company recognized an unrealized loss of $0.4 million in relation to the 1.3 million shares held in Golden Ocean in the Statement of Operations. DHT The Company acquired 10.9 million shares in DHT in the year ended December 31, 2017 for an aggregate cost of $46.1 million . The Company sold 6.2 million shares in DHT for proceeds of $27.4 million , recognizing a gain of $1.1 million in the Statement of Operations in the year ended December 31, 2017 of which $0.6 million related to the gain reclassification from Other Comprehensive Income. In the year ended December 31, 2017, the Company recognized an unrealized loss of $3.0 million in relation to the shareholding in DHT in Other Comprehensive Income. In the year ended December 31, 2018, the Company sold the remaining 4.7 million shares of DHT for proceeds of $17.8 million , recognizing a gain on disposal of $1.0 million in the Statement of Operations. |
TRADE ACCOUNTS RECEIVABLE, NET
TRADE ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
TRADE ACCOUNTS RECEIVABLE, NET | 15. TRADE ACCOUNTS RECEIVABLE, NET Trade accounts receivable are presented net of allowance for doubtful accounts of $2.9 million (2018: $5.8 million ). Movements in the allowance for doubtful accounts in the three years ended December 31, 2019 are summarized as follows; (in thousands of $) Balance at December 31, 2016 6,170 Additions charged to income — Deductions credited to income (172 ) Balance at December 31, 2017 5,998 Deductions credited to income (203 ) Balance at December 31, 2018 5,795 Deductions credited to income (2,847 ) Balance at December 31, 2019 2,948 |
NEWBUILDINGS
NEWBUILDINGS | 12 Months Ended |
Dec. 31, 2019 | |
NEWBUILDINGS [Abstract] | |
NEWBUILDINGS | 17. NEWBUILDINGS Movements in the three years ended December 31, 2019 are summarized as follows: (in thousands of $) Balance at December 31, 2016 308,324 Additions, net, continuing basis 707,988 Transfer to Vessels and equipment, net (941,388 ) Interest capitalized, continuing basis 4,678 Balance at December 31, 2017 79,602 Additions, net, continuing basis 201,653 Transfer to Vessels and equipment, net (230,596 ) Interest capitalized, continuing basis 1,595 Balance at December 31, 2018 52,254 Additions, net, continuing basis 158,846 Transfer to Vessels and equipment, net (166,121 ) Interest capitalized, continuing basis 1,089 Balance at December 31, 2019 46,068 The following table sets forth certain details of our newbuildings delivered in the three years ended December 31, 2019: (in thousands of $) Vessel name Vessel type Date of delivery Front Discovery VLCC April 2019 Front Defender VLCC January 2019 Front Empire VLCC January 2018 Front Princess VLCC January 2018 Front Polaris LR2/ Aframax January 2018 Front Classic Suezmax January 2017 Front Vega LR2/ Aframax January 2017 Front Antares LR2/ Aframax January 2017 Front Duchess VLCC February 2017 Front Clipper Suezmax March 2017 Front Crystal Suezmax April 2017 Front Sirius LR2/ Aframax April 2017 Front Coral Suezmax May 2017 Front Cosmos Suezmax June 2017 Front Castor LR2/ Aframax June 2017 Front Cascade Suezmax July 2017 Front Earl VLCC July 2017 Front Pollux LR2/ Aframax August 2017 Front Capella LR2/ Aframax September 2017 Front Prince VLCC September 2017 As of December 31, 2017, the Company's newbuilding program comprised four VLCCs and one LR2/Aframax tanker newbuildings. In the year ended December 31, 2018, the Company took delivery of two VLCC newbuildings, and one LR2/Aframax tanker newbuilding. As of December 31, 2018, the Company's newbuilding program comprised two VLCC newbuildings. In the year ended December 31, 2019, the Company took delivery of two VLCC newbuildings. As of December 31, 2019, the Company’s newbuilding program comprised one Suezmax tanker and one VLCC, which are expected to be delivered in April and May 2020, respectively, and four LR2 tankers, which are expected to be delivered in January 2021, March 2021, October 2021 and January 2022. |
OTHER RECEIVABLES
OTHER RECEIVABLES | 12 Months Ended |
Dec. 31, 2019 | |
OTHER RECEIVABLES [Abstract] | |
OTHER RECEIVABLES | 16. OTHER RECEIVABLES (in thousands of $) 2019 2018 Claims receivable 5,178 9,690 Agent receivables 3,474 3,733 Other receivables 16,816 3,645 25,468 17,068 Claims receivable is primarily attributable to insurance claims. Other receivables are presented net of allowances for doubtful accounts amounting to nil as of December 31, 2019 ( 2018 : nil ). |
VESSELS AND EQUIPMENT, NET
VESSELS AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
VESSELS AND EQUIPMENT, NET | 18. VESSELS AND EQUIPMENT, NET Movements in the three years ended December 31, 2019 are summarized as follows: (in thousands of $) Cost Accumulated Depreciation Net Carrying Value Balance at December 31, 2016 1,635,011 (157,616 ) 1,477,395 Transfers from Newbuildings 941,388 — Additions 894 — Depreciation — (77,547 ) Balance at December 31, 2017 2,577,293 (235,163 ) 2,342,130 Depreciation — (96,438 ) Additions 467 — Transfers from Newbuildings 230,596 — Balance at December 31, 2018 2,808,356 (331,601 ) 2,476,755 Depreciation — (102,000 ) Additions 39,029 — Transfers from Newbuildings 166,121 — Balance at December 31, 2019 3,013,506 (433,601 ) 2,579,905 A summary of the vessel deliveries in the three years ended December 31, 2019 can be found in Note 17. |
VESSELS UNDER FINANCE LEASE, NE
VESSELS UNDER FINANCE LEASE, NET | 12 Months Ended |
Dec. 31, 2019 | |
Leases, Capital [Abstract] | |
VESSELS UNDER FINANCE LEASE, NET | 19. VESSELS UNDER FINANCE LEASE, NET Movements in the three years ended December 31, 2019 are summarized as follows: (in thousands of $) Cost Accumulated Depreciation Net Carrying Value Balance at December 31, 2016 607,449 (71,016 ) 536,433 Impairment loss (187,379 ) 4,727 Lease termination (61,075 ) 23,192 Depreciation — (64,200 ) Balance at December 31, 2017 358,995 (107,297 ) 251,698 Lease termination (218,494 ) 83,601 Depreciation — (26,129 ) Balance at December 31, 2018 140,501 (49,825 ) 90,676 Additions 343,564 — Depreciation — (15,850 ) Balance at December 31, 2019 484,065 (65,675 ) 418,390 The outstanding obligations under finance leases as of December 31, 2019 are payable as follows: (in thousands of $) 2020 291,964 2021 17,557 2022 16,419 2023 17,557 2024 16,468 Thereafter 25,920 Minimum lease payments 385,885 Less: imputed interest (25,975 ) Present value of obligations under finance leases 359,910 In August 2019, the Company recognized additional right-of-use assets and finance lease obligations in relation to five vessels chartered in from Trafigura in connections with the SPA. See Note 5. for full details of the accounting for this transaction. In May 2015, the Company and SFL agreed to amendments to the leases on 12 VLCCs and five Suezmax tankers, the related management agreements and further amendments to the charter ancillary agreements for the remainder of the charter periods. As a result of the amendments to the charter ancillary agreements, which took effect on July 1, 2015, the daily hire payable to SFL was reduced to $20,000 per day and $15,000 per day for VLCCs and Suezmax tankers, respectively. The fee due from SFL for operating costs was increased from $6,500 per day per vessel to $9,000 per day per vessel. In return, the Company issued 11.0 million new shares (as adjusted for the 1-for- 5 reverse share split in February 2016) to SFL and the profit share above the new daily hire rates was increased from 25% to 50% . The Company was released from its guarantee obligation and in exchange FSL, a wholly owned subsidiary of the Company and the chartering counterparty with SFL, has agreed to certain dividend restrictions. 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 at December 31, 2019, the cash held by FSL of $13.1 million (2018: $3.5 million ) may solely be used for vessel operations, payment of hire to SFL or other amounts incurred under the charters and Charter Ancillary Agreement and any other amounts incurred in the ordinary course of business. As the Merger has been accounted for as a reverse business acquisition in which Frontline 2012 is treated as the accounting acquirer, all of the Company's assets and liabilities were recorded at fair value on November 30, 2015 such that estimated profit share over the remaining terms of the leases has been recorded in the balance sheet obligations. Consequently, the Company will only record profit share expense following the Merger when the actual expense is different to that estimated at the date of the Merger. As of December 31, 2019, the Company has recorded total obligations under these finance leases of $87.9 million of which $52.9 million is in respect of the minimum contractual payments and $35.0 million is in respect of contingent rental expense. Profit share arising in the year ended December 31, 2019 was $4.8 million , which was $2.2 million less than the amount accrued in the lease obligations payable when the leases were recorded at fair value at the time of the merger with Frontline 2012. Profit share arising in the year ended December 31, 2018 was $1.5 million , which was $19.7 million less than the amount accrued in the lease obligations payable when the leases were recorded at fair value at the time of the merger with Frontline 2012. Profit share arising in the year ended December 31, 2017 was $5.6 million , which was $26.1 million less than the amount accrued in the lease obligations payable when the leases were recorded at fair value at the time of the merger with Frontline 2012. The following table sets forth certain details of vessel lease terminations in the years ended December 31, 2018 and December 31, 2017. There were no lease terminations in the year ended December 31, 2019: (in thousands of $) Vessel Year Termination agreed Termination date Termination (payment)/ receipt Gain/ (loss) on termination Front Circassia 2018 February 2018 February 2018 (8,891 ) (5,811 ) Front Page 2018 June 2018 July 2018 (3,375 ) 2,638 Front Stratus 2018 June 2018 August 2018 (3,375 ) 2,144 Front Serenade 2018 June 2018 September 2018 (3,375 ) 2,426 Front Ariake 2018 October 2018 October 2018 (3,375 ) 3,523 Front Falcon 2018 November 2018 December 2018 — 5,404 Vessels terminated in 2018 (22,391 ) 10,324 Front Ardenne 2017 July 2017 August 2017 (4,853 ) (5,824 ) Front Scilla 2017 May 2017 June 2017 (6,465 ) (7,341 ) Front Brabant 2017 May 2017 May 2017 (3,578 ) (5,021 ) Front Century 2017 November 2016 March 2017 (4,110 ) 20,565 Vessels terminated in 2017 (19,006 ) 2,379 In March 2017, the Company recorded an impairment loss of $21.2 million with respect to four vessels leased in from SFL - the 1997-built Front Ardenne , the 1998-built Front Brabant , the 2000-built Front Scilla and the 1999-built Front Circassia - based on a 25% probability assumption of terminating the vessel's lease before the next drydock. In December 2017, the Company has recognized an impairment loss of $142.9 million on the remaining nine VLCCs chartered in from SFL. The leasehold interest in these finance leased assets was recorded at fair value at the time of the Merger based on the discounted value of the expected cash flows from the vessels. Based on the deterioration in forecast rates since the Merger, and the reduced remaining useful economic life of the vessels as they approach the end of their leases, the Company recognized an impairment loss on all of these leased vessels, calculated as the difference between the discounted value of the expected cash flows from the vessels as at December 31, 2017 and the carrying value of the vessels under finance lease at that time. In February 2018, the Company agreed with SFL to terminate the long-term charter for the 1998-built VLCC Front Circassia upon the sale and delivery of the vessel by SFL to an unrelated third party. The charter with SFL terminated in February and the charter counter party FSL, a non recourse subsidiary of Frontline, has agreed to make a compensation payment of approximately $8.9 million for the termination of the charter to SFL, which has been recorded as an interest-bearing note payable by FSL. The note is due for repayment in 2021 and carries interest of 7.5% per annum. The termination reduced obligations under finance leases by approximately $20.6 million . The Company recorded a loss on termination, including this termination payment, of $5.8 million in the year ended December 31, 2018. In July 2018, the Company agreed with SFL to terminate the long-term charter for the VLCCs Front Page, Front Stratus and Front Serenade upon the sale and delivery of the vessels by SFL to an unrelated third party. The charters with SFL terminated in July, August and September 2018, respectively, and Frontline agreed to make a compensation payment of approximately $10.1 million for the termination of the three charters to SFL, which was recorded as interest-bearing notes payable by Frontline. The notes are to be repaid using the same repayment profile as the original leases and carry an interest of 7.5% per annum. The notes will be fully repaid in 2025, 2025 and 2024, respectively. These terminations reduced obligations under finance leases by approximately $92.1 million . The Company recorded a gain on termination, including the termination payment, of $7.2 million in the year ended December 31, 2018. In October 2018, the Company agreed with SFL to terminate the long-term charter for the 2001-built VLCC, Front Ariake, upon the sale and delivery of the vessel by SFL to an unrelated third party. The charter terminated in October and Frontline has agreed to a total compensation payment to SFL of $3.4 million for the termination of the charter, which has been recorded as an interest bearing note payable by Frontline. The note carries interest of 7.5% per annum and will be fully repaid in 2023. In December 2018, the Company agreed with SFL to terminate the long-term charter for the 2002-built VLCC, Front Falcon, upon the sale and delivery of the vessel by SFL to an unrelated third party. The charter terminated in December. No compensation is payable on termination of the charter. These terminations reduced obligations under finance leases by approximately $55.2 million . The Company recorded a gain on termination, including the termination payment, of $8.9 million in the year ended December 31, 2018. As of December 31, 2019 , the Company leased in three vessels on long-term charter from SFL (2018: three vessels) and five vessels from Trafigura, all of which are classified as finance leases. The remaining periods on these leases at December 31, 2019 range from zero to 7 years. The Company recognized finance lease interest expense in the year ended December 31, 2019 of $10.7 million (2018: $16.4 million ). None of these vessels have been subleased under non-cancellable operating leases. |
EQUITY METHOD INVESTMENTS
EQUITY METHOD INVESTMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
EQUITY METHOD INVESTMENTS | 20. EQUITY METHOD INVESTMENTS In June 2018, the Company announced that it had entered into memorandum of agreement to acquire a 20% ownership interest in FMSI. The Company recorded its initial investment at a cost of $6.0 million . The Company’s investment is in the form of an interest free loan with no fixed repayment date. The Company became a shareholder in the third quarter of 2018 when the nominal value of the shares was paid and the loan was advanced. The investment is accounted for under the equity method. A share of results of $0.2 million was recognized in the year ended December 31, 2018. In January 2019, the Company announced that its ownership interest in FMSI had increased to 28.9% following the purchase by FMSI of a 30.8% stake in FMSI from Bjørnar Feen, one of FMSI’s founders. In January 2019, FMSI repaid $3.0 million of the $6.0 million Shareholder Loan. The repayment of the loan was recorded against the investment in associated company. A share of results of $1.7 million was recognized in the year ended December 31, 2019. |
OTHER LONG-TERM ASSETS OTHER LO
OTHER LONG-TERM ASSETS OTHER LONG-TERM ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Statement of Financial Position [Abstract] | |
OTHER LONG-TERM ASSETS | 21. OTHER LONG-TERM ASSETS Other long-term assets are comprised of advances paid and costs incurred in respect of vessel upgrades in relation to EGCS and BWTS until such time as the equipment is installed on a vessel, at which point it is transferred to Vessels and equipment, net. |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | 22. ACCRUED EXPENSES (in thousands of $) 2019 2018 Voyage expenses 33,984 15,934 Ship operating expenses 27,248 7,879 Administrative expenses 4,540 2,365 Interest expense 9,132 9,914 Taxes 709 727 Other 132 212 75,745 37,031 |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
OTHER CURRENT LIABILITIES | 23. OTHER CURRENT LIABILITIES (in thousands of $) 2019 2018 Deferred charter revenue 4,975 304 Other 2,570 3,600 7,545 3,904 |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | 24. DEBT (in thousands of $) 2019 2018 U.S. dollar denominated floating rate debt $500.1 million term loan facility 347,689 385,792 $60.6 million term loan facility 44,126 47,594 $466.5 million term loan facility 264,752 281,273 $109.2 million term loan facility 89,929 96,353 $328.4 million term loan facility 230,805 246,079 $321.6 million term loan facility 241,127 260,108 $110.5 million term loan facility (ING) 106,189 51,413 $110.5 million term loan facility (Credit Suisse) 112,190 103,747 $110.5 million term loan facility (Credit Suisse #2) 117,098 52,636 Total U.S. dollar denominated floating rate debt 1,553,905 1,524,995 U.S. dollar denominated fixed rate debt $275.0 million revolving credit facility 120,000 186,000 Total U.S. dollar denominated fixed rate debt 120,000 186,000 Credit facilities 23 32 Secured borrowings 7,329 7,631 Promissory notes 20,084 21,894 Total debt 1,701,341 1,740,552 Short-term debt and current portion of long-term debt 438,962 120,479 Deferred charges 7,962 9,780 Long-term portion of debt 1,254,417 1,610,293 The outstanding debt as of December 31, 2019 is repayable as follows: (in thousands of $) 2020 438,962 2021 558,928 2022 57,808 2023 219,290 2024 125,077 Thereafter 301,276 1,701,341 $466.5 million term loan facility During December 2014, the amount of a $136.5 million term loan facility was increased to $466.5 million such that a further ten tranches of $33.0 million , each for a LR2/Aframax tanker newbuilding, could be drawn. The repayment schedule was amended to installments on a quarterly basis, in an amount of $0.4 million for each MR product tanker and $0.4 million for each LR2/Aframax tanker with a balloon payment on the final maturity date in April 2021. In addition the loan margin and commitment fee were amended to 2.05% and 0.82% , respectively. In December 2015, the loan margin was reduced to 1.90% . During 2015, $99.0 million was drawn down on delivery of three LR2/Aframax tankers and $13.1 million was repaid. During, 2016, $192.4 million was drawn down on delivery of six LR2/Aframax tankers and $126.4 million was repaid. The facility is fully drawn down as of December 31, 2019 . $60.6 million term loan facility In March 2015, Frontline 2012 entered into a $60.6 million term facility to fund the purchase of two secondhand vessels. The loan has a term of five years and carries interest at LIBOR plus a margin of 1.80% . Repayments are made on a quarterly basis, each in an amount of $0.9 million , with a balloon payment on the final maturity date in March 2021.The facility is fully drawn down as of December 31, 2019 . $500.1 million term loan facility In December 2015, subsidiaries of the Company signed a $500.1 million senior secured term loan facility with a number of banks, which matures in December 2020 and carries an interest rate of LIBOR plus a margin of 1.90% . This facility is secured by six VLCCs and six Suezmax tankers. Repayments are made on a quarterly basis, each in an amount of $9.5 million , with a balloon payment on the final maturity date in December 2020. The facility is fully drawn down as of December 31, 2019 . $275.0 million revolving credit facility In June 2016, the Company signed a $275.0 million senior unsecured facility agreement with an affiliate of Hemen, the Company's largest shareholder. The $275.0 million facility carries an interest rate of 6.25% . The facility is available to the Company for a period of 18 months from the first utilization date and is repayable in full on the 18 month anniversary of the first utilization date. There are no scheduled loan repayments before this date. The facility does not include any financial covenants and will be used to part finance the Company's current newbuilding program, partially finance potential acquisitions of newbuildings or vessels on the water and for general corporate purposes. The Company repaid $66.0 million in the year ended December 31, 2019 and up to $155.0 million remains available and undrawn as of December 31, 2019. In October 2019, the Company extended the terms of the facility by six months. Following the extension, the facility is repayable in May 2021. The balance outstanding is included in long-term debt as of December 31, 2019. $109.2 million term loan facility In July 2016, the Company entered into a senior secured term loan facility in an amount of up to $109.2 million with ING Bank. The facility matures on June 30, 2021, carries an interest rate of LIBOR plus a margin of 1.90% and has an amortization profile of 17 years. The Company drew down $54.6 million in the year ended December 31, 2017 in connection with one VLCC delivered in the period. The facility is fully drawn down as of December 31, 2019 . $328.4 million term loan facility In August 2016, the Company signed a senior secured term loan facility in an amount of up to $328.4 million with China Exim Bank. The facility matures in 2029, carries an interest rate of LIBOR plus a margin in line with the Company's other facilities and has an amortization profile of 18 years. The Company drew down $109.0 million in the year ended December 31, 2016 in connection with one LR2 tanker and two Suezmax tanker newbuildings, which were delivered in the year. The Company drew down a further $165.9 million in the year ended December 31, 2017 in connection with two Suezmax tankers and three LR2/Aframax tankers delivered in the year. The facility is fully drawn down as of December 31, 2019 . $110.5 million term loan facility (Credit Suisse) In December 2016, the Company signed a senior secured term loan facility in an amount of up to $110.5 million with Credit Suisse. The facility matures in 2022, carries an interest rate of LIBOR plus a margin of 1.90% and has an amortization profile of 18 years. The Company drew down $54.9 million in the year ended December 31, 2017 in connection with one VLCC delivered in the period. The Company drew down $54.9 million in the year ended December 31, 2018 in connection with one VLCC delivered in the period. The Company extended the facility by $15.0 million in the year ended December 31, 2019. The facility is fully drawn down as of December 31, 2019 . $321.6 million term loan facility In February 2017, the Company signed a second senior secured term loan facility in an amount of up to $321.6 million . The facility provided by China Exim Bank is insured by China Export and Credit Insurance Corporation. The facility matures in 2033, carries an interest rate of LIBOR plus a margin in line with the Company's other credit facilities and has an amortization profile of 15 years. The Company drew down $252.7 million in the year ended December 31, 2017 in connection with four Suezmax tankers and three LR2/Aframax tankers delivered in the period. The Company drew down $32.0 million in the year ended December 31, 2018 in connection with one LR2 tanker delivered in the period. The facility is fully drawn down as of December 31, 2019 . $110.5 million term loan facility (Credit Suisse #2) In June 2017, the Company signed a senior secured term loan facility in an amount of up to $110.5 million with Credit Suisse. The facility matures in 2023, carries an interest rate of LIBOR plus a margin of 1.90% and has an amortization profile of 18 years. The Company drew down $54.9 million in the year ended December 31, 2018 in connection with one VLCC delivered in the period. The Company drew down $55.3 million in the year ended December 31, 2019 in connection with one VLCC delivered in the period. The Company extended the facility by $15.0 million in the year ended December 31, 2019. The facility is fully drawn down as of December 31, 2019 . $110.5 million term loan facility (ING) In June 2017, the Company signed a senior secured term loan facility in an amount of up to $110.5 million with ING. The facility matures in 2023, carries an interest rate of LIBOR plus a margin of 1.90% and has an amortization profile of 18 years. The Company drew down $55.3 million in the year ended December 31, 2017 in connection with one VLCC delivered in the period. The Company drew down $55.3 million in the year ended December 31, 2019 in connection with one VLCC delivered in the period. The Company extended the facility by $4.1 million in the year ended December 31, 2019 and drew down the $4.1 million in connection with the installation of an EGCS on the VLCC delivered in the period. The facility is fully drawn as of December 31, 2019 . $42.9 million term loan facility (Credit Suisse) In November 2019, the Company signed a senior secured term loan facility with Credit Suisse, for an amount of up to $42.9 million to part-finance the Suezmax tanker resale under construction at HSHI. The facility matures five years after the delivery date, carries an interest rate of LIBOR plus a margin of 1.90% and has an amortization profile of 18 years. The facility is undrawn as of December 31, 2019. Promissory notes The sum of $20.1 million in relation to the promissory notes payable to SFL, following the termination of the leases on Front Circassia, Front Page, Front Stratus, Front Serenade and Front Ariake is included within long-term debt. See Note 19. of these Consolidated Financial Statements for further details. Secured borrowings In December 2018, the Company repurchased 1.3 million shares of Golden Ocean and subsequently sold the shares for total proceeds of $7.7 million . At the same time, the Company entered into a forward contract to repurchase 1.3 million shares of Golden Ocean in March 2019 for $7.7 million . The transaction has been accounted for as a secured borrowing, with the shares recorded in Marketable securities pledged to creditors and a liability recorded at December 31, 2018 within short-term debt for $7.6 million , after adjusting for the effect of foreign exchange. The Company is required to post collateral of 20% of the total repurchase price for the duration of the agreement. As at December 31, 2018, 442,384 shares in Avance Gas were held as collateral and recorded in Marketable securities pledged to creditors with the remaining balance being paid to the counterparty as cash collateral in January 2019. In December 2019, the Company repurchased 1.3 million shares of Golden Ocean and subsequently sold the shares for total proceeds of $7.6 million . At the same time, the Company entered into a forward contract to repurchase the 1.3 million shares of Golder Ocean in March 2020 for $7.2 million , with the shares recorded in Marketable securities pledged to creditors and a liability recorded at December 31, 2019 within short-term debt for $7.3 million , after adjusting for the effect of foreign exchange. The Company is required to post collateral of 20% of the total repurchase price for the duration of the agreement which was held in Restricted cash as of December 31, 2019. The Company's loan agreements contain loan-to-value clauses, which could require the Company to post additional collateral or prepay a portion of the outstanding borrowings should the value of the vessels securing borrowings under each of such agreements decrease below required levels. In addition, the loan agreements contain certain financial covenants, including the requirement to maintain a certain level of free cash, positive working capital and a value adjusted equity covenant. Restricted cash does not include cash balances of $38.3 million (2018: $37.9 million ), which represents 50% (2018: 50% ) of the cash required to be maintained by the financial covenants in our loan agreements. The Company is permitted to satisfy up to 50% of the cash requirement by maintaining a committed undrawn credit facility with a remaining availability of greater than 12 months. These amounts are included in Cash and cash equivalents. Failure to comply with any of the covenants in the loan agreements could result in a default, which would permit the lender to accelerate the maturity of the debt and to foreclose upon any collateral securing the debt. Under those circumstances, the Company might not have sufficient funds or other resources to satisfy its obligations. The Company was in compliance with all of the financial covenants contained in the Company's loan agreements as of December 31, 2019 . Assets pledged (in thousands of $) 2019 2018 Vessels, net 2,578,135 2,475,649 Deferred charges (in thousands of $) 2019 2018 Debt arrangement fees 16,831 17,490 Accumulated amortization (8,869 ) (7,710 ) 7,962 9,780 The Company paid $0.7 million of debt arrangement fees in the year ended December 31, 2019 (2018: nil ). The Company paid a $3.4 million guarantee fee to an affiliate of Hemen in the year ended December 31, 2019, further details can be found in Note 28. The Company recognized $2.1 million of the guarantee fee within Interest expense in the year ended December 31, 2019. The remaining balance of $1.3 million is recorded in Other current assets as of December 31, 2019. |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2019 | |
SHARE CAPITAL [Abstract] | |
SHARE CAPITAL | 25. SHARE CAPITAL Equity distribution In July 2018, the Company announced it had entered into an Equity Distribution Agreement dated July 24, 2018, with Morgan Stanley & Co. LLC for the offer and sale of up to $100.0 million of common shares of Frontline through an ATM. In the year ended December 31, 2019, the Company issued 11,037,273 shares for proceeds of $98.4 million . Trafigura In August 2019, the Company issued 16,035,856 shares at a closing share price of $7.92 as a part of the consideration for the Acquisition, see Note 5. for further details. The following table summarizes the movement in the number of shares outstanding during the two years ended December 31, 2019 ; Outstanding shares at December 31, 2017 169,809,324 Shares issuance in the year 11,868 Outstanding shares at December 31, 2018 169,821,192 Shares issued under ATM program 11,037,273 Shares issued as consideration for Trafigura acquisition 16,035,856 Outstanding shares at December 31, 2019 196,894,321 |
SHARE OPTIONS
SHARE OPTIONS | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
SHARE OPTIONS | 26. SHARE OPTIONS In November 2006, the Company's Board of Directors approved a share option plan, which was cancelled in 2009 and replaced with the Frontline Ltd. Share Option Scheme, or the Frontline Scheme. The Frontline Scheme permits the Board of Directors, at its discretion, to grant options to acquire shares in the Company to employees and directors of the Company or its subsidiaries. The subscription price for all options granted under the scheme is reduced by the amount of all dividends declared by the Company in the period from the date of grant until the date the option is exercised, provided the subscription price is never reduced below the par value of the share. The vesting periods of options granted under the Frontline Scheme will be specific to each grant. There is no maximum number of shares authorized for awards of equity share options and authorized, un-issued or treasury shares of the Company may be used to satisfy exercised options. In July 2016, the Company granted 1,170,000 share options, with an exercise price of $8.00 per share, to directors and officers in accordance with the terms of the Frontline Scheme. One third of the options vested over one year, one third vested over two years and one third vested over three years. The options have a five -year term. In November 2018, the Company granted 180,000 share options, with an exercise price of $7.40 per share, to employees in accordance with the terms of the Frontline Scheme. All options vested in July 2019. The options have a thirty-three month term. The fair value of the granted option awards was estimated on the date of grant using a Black-Scholes option valuation model with the following assumptions: July 2016 November 2018 Risk free interest rate 0.69 % 2.78 % Expected life (years) 3.5 1.6 Expected volatility 79.80 % 38.24 % Expected dividend yield 0.00 % 0.00 % The risk-free interest rate was estimated using the interest rate on three -year U.S. treasury zero coupon issues for the options granted in July 2016 and on prorated one to two year U.S. treasury zero coupon issues for the options granted in November 2018. The volatility was estimated using historical share price data. The dividend yield was estimated at 0% as the exercise price is reduced by all dividends declared by the Company from the date of grant to the exercise date. It was assumed that all of the options granted in July 2016 and November 2018 will vest. The initial exercise price for the options granted in July 2016 and November 2018 was reduced by the amount of dividends paid after the date of grants. As at December 31, 2019, the exercise price of the options granted in July 2016 and November 2018 was $7.30 and the Company's share price was $12.86 . As at December 31, 2019, 1,350,000 options had vested. As at December 31, 2019, 33,000 of these share options had been forfeited. As at December 31, 2019, there was no unrecognized stock compensation expense related to non-vested options. As at December 31, 2018, there was $0.3 million and $0.2 million in unrecognized stock compensation expense related to non-vested options for the options granted in July 2016 and November 2018, respectively. Stock compensation expense of $0.4 million was recognized in 2019 (2018: $1.0 million , 2017: $2.1 million ). The weighted average grant-date fair value of the options granted in 2016 was $4.06 per share and $1.53 per share for the options granted in 2018. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS | 27. FINANCIAL INSTRUMENTS Interest rate swap agreements In February 2013, Frontline 2012 entered into six interest rate swaps with Nordea Bank whereby the floating interest rate on an original principal amount of $260 million of the then anticipated debt on 12 MR product tanker newbuildings was switched to fixed rate. Six of these newbuildings were subsequently financed from the $466.5 million term loan facility. In February 2016, the Company entered into an interest rate swap with DNB whereby the floating interest on notional debt of $150.0 million was switched to fixed rate. The contract had a forward start date of February 2019. The aggregate fair value of these swaps at December 31, 2019 was an asset of $0.1 million (2018: $7.6 million ) and a liability of $4.3 million (2018: nil ). The fair value (level 2) of the Company’s interest rate swap agreements is the estimated amount that the Company would receive or pay to terminate the agreements at the reporting date, taking into account, as applicable, fixed interest rates on interest rate swaps, current interest rates, forward rate curves and the current credit worthiness of both the Company and the derivative counterparty. The estimated fair value is the present value of future cash flows. The Company recorded a loss on these interest rate swaps of $10.1 million in 2019 ( 2018 : gain of $4.3 million , 2017: loss of $0.8 million ). The interest rate swaps are not designated as hedges and are summarized as at December 31, 2019 as follows: Notional Amount Inception Date Maturity Date Fixed Interest Rate ($000s) 12,892 June 2013 June 2020 1.4025 % 38,546 September 2013 September 2020 1.5035 % 65,645 December 2013 December 2020 1.6015 % 12,690 March 2014 March 2021 1.6998 % 13,033 June 2014 June 2021 1.7995 % 13,376 September 2014 September 2021 1.9070 % 150,000 February 2016 February 2026 2.1970 % 306,182 Foreign currency risk The majority of the Company's transactions, assets and liabilities are denominated in U.S. dollars, the functional currency of the Company. There is a risk that currency fluctuations will have a negative effect on the value of the Company's cash flows. The Company has not entered into forward contracts for either transaction or translation risk, which may have an adverse effect on the Company's financial condition and results of operations. Certain of the Company's subsidiaries report in Sterling, Singapore dollars and Norwegian kroner and risks of two kinds arise as a result: • a transaction risk, that is, the risk that currency fluctuations will have a negative effect on the value of the Company's cash flows; • a translation risk, that is, the impact of adverse currency fluctuations in the translation of foreign operations and foreign assets and liabilities into U.S. dollars for the Company's consolidated financial statements. Accordingly, such risk may have an adverse effect on the Company's financial condition and results of operations. The Company has not entered into material derivative contracts for either transaction or translation risk. Fair Values The carrying value and estimated fair value of the Company's financial instruments as of December 31, 2019 and 2018 are as follows: 2019 2018 (in thousands of $) Carrying Value Fair Value Carrying Value Fair Value Assets: Cash and cash equivalents 174,223 174,223 66,484 66,484 Restricted cash 3,153 3,153 1,420 1,420 Liabilities: Floating rate debt 1,553,928 1,553,928 1,525,028 1,525,028 Fixed rate debt 147,413 146,225 215,524 212,696 The estimated fair value of financial assets and liabilities are as follows: (in thousands of $) 2019 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents 174,223 174,223 — — Restricted cash 3,153 3,153 — — Liabilities: Floating rate debt 1,553,928 — 1,553,928 — Fixed rate debt 146,225 — 7,329 138,896 (in thousands of $) 2018 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents 66,484 66,484 — — Restricted cash 1,420 1,420 — — Liabilities: Floating rate debt 1,525,028 — 1,525,028 — Fixed rate debt 212,696 — 7,631 205,065 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. 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 during the year. The impairment test used Level 1, Level 2 and Level 3 inputs. See Note 4. 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 the aggregate market value based on quoted market prices (level 1). The fair value (level 2) of interest rate agreements is the present value of the estimated future cash flows that the Company would receive or pay to terminate the agreements at the balance sheet date, taking into account, as applicable, fixed interest rates on interest rate swaps, current interest rates, forward rate curves and the credit worthiness of both the Company and the derivative counterparty. Concentrations of risk There is a concentration of credit risk with respect to cash and cash equivalents to the extent that substantially all of the amounts are carried with Skandinaviska Enskilda Banken, or SEB, HSBC, Royal Bank of Scotland, DNB Bank ASA and Nordea Bank Norge, or Nordea. There is a concentration of credit risk with respect to restricted cash to the extent that substantially all of the amounts are carried with DNB Bank ASA. However, the Company believes this risk is remote. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 28. 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, Arcadia Petroleum Limited, Archer Limited, North Atlantic Drilling Ltd, Northern Drilling Ltd, Flex LNG Ltd, and Avance Gas. We also own an interest in FMSI which is accounted for as an equity method investment. SFL Transactions SFL are the counterparty to three vessels we hold as Vessels Under Finance Lease, further information can be found in Note 19. In the year ended December 31, 2018 we terminated the leases on six VLCCs. In the year ended December 31, 2017 we terminated the leases on two VLCCs and two Suezmax tankers. Further information on the gain (loss) on termination of leases can be found in Note 19. A total of $20.1 million in relation to the promissory notes payable to SFL, following the termination of the leases on Front Circassia, Front Page, Front Stratus, Front Serenade and Front Ariake, is included within long-term debt as of December 31, 2019 (2018: $21.9 million ). The Company was charged $1.6 million (2018: $0.9 million ) in the year ended December 31, 2019 for interest expense in relation to these notes. A summary of leasing transactions with SFL in the years ended December 31, 2019 , 2018 and 2017 are as follows; (in thousands of $) 2019 2018 2017 Charter hire paid (principal and interest) 11,745 47,324 75,055 Lease termination payments — (22,391 ) (19,006 ) Lease interest expense 6,940 16,400 25,980 Contingent rental income (2,607 ) (19,738 ) (26,148 ) Remaining lease obligation 87,930 99,784 299,016 Contingent rental income in 2019 is primarily due to the fact that the actual profit share expense earned by SFL in 2019 of $4.8 million (2018: $1.5 million , 2017: $5.6 million ) was $2.2 million (2018: $19.7 million , 2017: $26.1 million ) less than the amount accrued in the lease obligation payable when the leases were recorded at fair value at the time of the Merger. In January 2014, the Company commenced a pooling arrangement with SFL, between two of its Suezmax tankers Front Odin and Front Njord and two SFL vessels Glorycrown and Everbright. The Company recognized a loss of $1.5 million in 2019 in relation to the pooling arrangement which is payable to SFL ( 2018 : gain of $0.2 million , 2017: loss of $2.1 million ). FMSI transactions In July 2018, the Company advanced a loan of $6.0 million to FMSI. The loan is interest free with no fixed repayment date. In January 2019, FMSI repaid $3.0 million to the Company. In the year ended December 31, 2018, the Company entered into agreements to purchase EGCS from FMSI with a financial commitment of approximately $26.0 million , excluding installation costs. In the year ended December 31, 2019 the Company paid or accrued amounts totalling $9.1 million (2018: $8.2 million ) in relation to the installation of EGCS on its owned and leased vessels. Transactions with other affiliates of Hemen In June 2016, the Company signed a $275.0 million senior unsecured facility agreement with an affiliate of Hemen, the Company's largest shareholder. The Company repaid $66.0 million in the year ended December 31, 2019 from the facility and up to $155.0 million remains available and undrawn as of December 31, 2019. The Company recognized interest expense of $8.9 million in the year ended December 31, 2019 (2018: $9.3 million ). In October 2019, the Company extended the terms of the facility by six months to May 2021. In August 2019, an affiliate of Hemen provided a guarantee to finance the cash amount of up to $547.0 million , payable at closing of the Acquisition. A $3.4 million guarantee fee was paid in the year ended December 31, 2019. The Company closed the Acquisition on March 16, 2020 with the proceeds from the ICBCL financing arrangement, hence the Company will not proceed with the Hemen facility. See Note 31. for further details. A summary of net amounts earned from (paid to) related parties for the years ended December 31, 2019 , 2018 and 2017 are as follows: (in thousands of $) 2019 2018 2017 Seatankers Management Co. Ltd 18,878 7,152 3,420 SFL 1,591 2,001 3,473 Golden Ocean 6,851 7,138 6,671 Seatankers Management Norway AS (705 ) (735 ) (767 ) Arcadia Petroleum Limited 3,197 — — Seadrill Limited 367 279 470 Archer Limited 418 317 238 Flex LNG Ltd 1,195 1,788 4,432 North Atlantic Drilling Ltd — 29 37 Avance Gas 518 — — Other related parties 197 101 67 Net amounts earned from other related parties comprise office rental income, technical and commercial management fees, newbuilding supervision fees, freights, corporate and administrative services income. Amounts paid to related parties comprise rental for office space and the provision of other administrative services. Related party balances A summary of balances due from related parties at December 31, 2019 and 2018 is as follows: (in thousands of $) 2019 2018 SFL 4,982 1,653 Seatankers Management Co. Ltd 5,490 2,657 Archer Limited 94 173 Golden Ocean 3,593 2,370 Seadrill Limited 554 538 Arcadia Petroleum Limited — — Flex LNG Ltd 391 210 North Atlantic Drilling Ltd 25 116 Avance Gas 240 Other related parties 212 178 15,581 7,895 A summary of balances due to related parties at December 31, 2019 and 2018 is as follows: (in thousands of $) 2019 2018 SFL Corporation Ltd 9,193 8,886 Seatankers Management Co. Ltd 4,037 3,236 Golden Ocean 6,241 5,558 Flex LNG Ltd 636 1,058 Avance Gas 79 — 20,186 18,738 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 29. COMMITMENTS AND CONTINGENCIES As of December 31, 2019 , the Company's newbuilding program comprised one Suezmax tanker and one VLCC, which are expected to be delivered in April and May 2020, and four LR2 tankers, which are expected to be delivered in January 2021, March 2021, October 2021 and January 2022, respectively. As of December 31, 2019 , total installments of $45.0 million had been paid and remaining commitments amounted to $302.0 million , of which we expect $159.6 million to be paid in 2020, $109.1 million to be paid in 2021 and $33.3 million to be paid in 2022. 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. 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. Following assignments of two property leases in 2015, each to a related party, a subsidiary of the Company has guaranteed the remaining outstanding payments due under the leases of approximately $5.4 million as of December 31, 2019 (2018: approximately $6.3 million ). The Company does not believe that it will be required to make any payments under these guarantees and has not recorded a liability in the balance sheet in this respect. As of December 31, 2019, the Company has committed to the purchase of EGCS on 11 vessels owned by the Company, with a financial commitment of $8.3 million , excluding installation costs. These commitments are due in 2020. As of December 31, 2019, the Company has committed to the purchase of BWTS on eight vessels, with a financial commitment of $2.9 million , excluding installation costs. These commitments are due in 2020. As of December 31, 2019, the Company has committed to the purchase of a special purpose company, which will hold 10 Suezmax tankers as a result of the Acquisition from TML. The cash amount due to TML on closing of the Acquisition on March 16, 2020 is $538.2 million . The Company has recognized $269.2 million of the cash amount due within the finance lease obligation of $272.0 million in respect of the five vessels which the Company does not charter back to Trafigura as of December 31, 2019. The remaining cash amount due will be recognized upon closing of the Acquisition. See Note 5. for full details of the accounting for this transaction. |
SUPPLEMENTAL INFORMATION
SUPPLEMENTAL INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
SUPPLEMENTAL INFORMATION | 30. SUPPLEMENTAL INFORMATION In the year ended December 31, 2017, the Company agreed with SFL to terminate the long-term charter for three vessels. The Company recognized a reduction in finance lease obligations of $53.2 million in the year ended December 31, 2017 in respect of these vessels. In the year ended December 31, 2018, the Company agreed with SFL to terminate the long-term charter for six vessels. The Company recognized a reduction in finance lease obligations of $167.9 million in the year ended December 31, 2018 in respect of these vessels. Further information on the termination of long-term charters with SFL can be found in Note 19. In the year ended December 31, 2019, the Company issued 16,035,856 shares as part of the consideration under the SPA to acquire 10 Suezmax tankers from Trafigura. The shares have been recorded at the grant date fair value of $7.92 per share, totaling $127.0 million . See Note 5. for full details of the accounting for this transaction. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 31. SUBSEQUENT EVENTS In October 2019, the Company announced that FMSI and Clean Marine AS had entered into a term sheet pursuant to which the entities will effect a business combination to create a leading provider of EGCS. The merger completed on January 23, 2020. Furthermore, the Company acquired an additional stake in the combined company from another shareholder for $0.8 million . Following the transactions, Frontline owns a 17.34% interest in the combined company. In January 2020, the Company issued 798,000 ordinary shares under its share option scheme, the Frontline Scheme, to Robert Hvide Macleod at a strike price of $7.30 per share. Following such issuance, Frontline has an issued share capital of $197,692,321 divided into 197,692,321 ordinary shares. In January 2020, the joint venture agreement with Golden Ocean Group Limited and companies in the Trafigura Group to establish a leading global supplier of marine fuels was completed. As a result, Frontline took a 15% interest in the joint venture company and made a $1.5 million shareholder loan to the joint venture company. Furthermore, 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 the joint venture. In February 2020, the Company announced that FSL has 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 will receive a compensation payment of approximately $3.2 million from SFL for the termination of the current charter. The Company expects to record a gain on termination, including the compensation payment, of approximately $7.4 million in the first quarter of 2020. The charter with SFL terminated in February 2020. Following this termination, FSL will have two VLCCs on charter from SFL. In conjunction with the termination of the lease, the Company has settled the outstanding balances due under the notes payable in relation to the termination of the leases for Front Circassia, Front Page, Front Serenade, Front Stratus and Front Ariake of approximately $20.0 million . In February 2020, the Company obtained a commitment from Crédit Agricole for a senior secured term loan facility in an amount of up to $62.5 million to part-finance the VLCC resale under construction at HSHI. The facility, which is subject to final documentation, will mature five years after delivery date, carries an interest rate of LIBOR plus a margin of 1.90% and has an amortization profile of 18 years. In February 2020, the Company declared a cash dividend of $0.40 per share for the fourth quarter of 2019. In March 2020, the Company signed a sale-and-leaseback agreement in an amount of up to $544.0 million with ICBCL to finance the cash amount payable upon closing of the Acquisition, which took place on March 16, 2020. The lease financing has a tenor of seven years, carries an interest rate of LIBOR plus a margin of 2.30% , has an amortization profile of 17.8 years and includes purchase options for Frontline throughout the term with a purchase obligation at the end of the term. In March 2020, the Company closed the acquisition of 10 Suezmax tankers under the SPA with Trafigura. |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation Our consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. The consolidated financial statements include the assets and liabilities of us and our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated upon consolidation. Investments in companies over which the Company has the ability to exercise significant influence, but does not control, are accounted for using the equity method. The Company records its investments in equity-method investees in the consolidated balance sheets as "Investment in associated companies" and its share of the investees' earnings or losses in the consolidated statements of operations as "Share of results of associated companies". The excess, if any, of purchase price over book value of the Company's investments in equity method investees is included in the accompanying consolidated balance sheets in "Investment in associated companies". |
Use of estimates | Use of estimates The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Such estimates and assumptions impact, among others, the following: vessels and obligations under finance leases, the amount of uncollectible accounts and accounts receivable, the amount to be paid for certain liabilities, including contingent liabilities, the amount of costs to be capitalized in connection with the construction of our newbuildings and the lives of our vessels. Actual results could differ from those estimates. |
Fair values | Fair values We have determined the estimated fair value amounts presented in these consolidated financial statements using available market information and appropriate methodologies. However, considerable judgment is required in interpreting market data to develop the estimates of fair value. The estimates presented in these consolidated financial statements are not necessarily indicative of the amounts that we could realize in a current market exchange. Estimating the fair value of assets acquired and liabilities assumed in a business combination requires the use of estimates and significant judgments, among others, the following: the expected revenues earned by vessels held under finance lease and the operating costs (including drydocking costs) of those vessels, the expected contingent rental expense, if applicable, to be included in obligations under finance lease, the discount rate used in cash flow based valuations, the market assumptions used when valuing acquired time charter contracts and the value of contingent claims. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the accounts for us and our wholly owned subsidiaries. Intercompany accounts and transactions have been eliminated on consolidation. The operating results of acquired companies are included in our Consolidated Statement of Operations from the date of acquisition. For investments in which we own 20% to 50% of the voting shares and have significant influence over the operating and financial policies, the equity method of accounting is used. Accordingly, our share of the earnings and losses of these companies are included in the share of results from associated company and gain on equity interest in the accompanying Consolidated Statements of Operations. |
Foreign currency translation | Foreign currency translation Our functional currency is the U.S. dollar. Exchange gains and losses on translation of our net equity investments in subsidiaries are reported as a separate component of accumulated other comprehensive loss in shareholders’ equity. Foreign currency transaction gains and losses are recorded in the Consolidated Statement of Operations. |
Cash and cash equivalents | Cash and cash equivalents For the purposes of the Consolidated Balance Sheet and the Consolidated Statement of Cash Flows, all demand and time deposits and highly liquid, low risk investments with original maturities of three months or less are considered equivalent to cash. |
Restricted cash | Restricted cash Restricted cash consists of cash, which may only be used for certain purposes and is held under a contractual arrangement. |
Marketable securities | Marketable securities Marketable equity securities held by the Company are considered to be available-for-sale securities and as such are carried at fair value. Any resulting unrealized gains and losses, net of deferred taxes if any, are recorded as a separate component of other comprehensive income in equity unless the securities are considered to be other than temporarily impaired, in which case unrealized losses are recorded in the Consolidated Statement of Operations for the year ended December 31, 2017. In 2018, the Company adopted the targeted improvements to ASC 825-10 Recognition and Measurement of Financial Assets and Liabilities. The Company adopted the new guidance using the modified retrospective method, with no changes recognized in the prior year comparatives and a cumulative catch up adjustment recognized in the opening retained deficit. As a result of the adoption of this guidance the Company records the movement in the fair value of Marketable Securities in the Consolidated Statement of Operations. |
Inventories | Inventories Inventories comprise principally of fuel and lubricating oils and are stated at the lower of cost and net realizable value. Cost is determined on a first-in, first-out basis. |
Vessels and equipment | Vessels and equipment The cost of the vessels less estimated residual value is depreciated on a straight-line basis over the vessels' estimated remaining economic useful lives. The estimated economic useful life of the Company's vessels is 25 years. Other equipment, excluding vessel upgrades, is depreciated over its estimated remaining useful life, which approximates five years. The residual value for owned vessels is calculated by multiplying the lightweight tonnage of the vessel by the market price of scrap per tonne. The market price of scrap per tonne is calculated as the ten year average, up to the date of delivery of the vessel, across the three main recycling markets (Far East, Indian sub continent and Bangladesh). Residual values are reviewed annually. The Company capitalizes and depreciates the costs of significant replacements, renewals and upgrades to its vessels over the shorter of the vessel’s remaining useful life or the life of the renewal or upgrade. The amount capitalized is based on management’s judgment as to expenditures that extend a vessel’s useful life or increase the operational efficiency of a vessel. Costs that are not capitalized are recorded as a component of direct vessel operating expenses during the period incurred. Expenses for routine maintenance and repairs are expensed as incurred. Advances paid in respect of vessel upgrades in relation to EGCS and BWTS are included within "other long-term assets", until such time as the equipment is installed on a vessel, at which point it is transferred to "Vessels and equipment, net". |
Vessels and equipment under finance and operating lease | Vessels and equipment under finance lease The Company classifies a lease as a finance lease when the lease meets any of the following criteria at lease commencement: • The lease transfers ownership of the underlying asset to the lessee by the end of the lease term. • The lease grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise. • The lease term is for the major part of the remaining economic life of the underlying asset. However, if the commencement date falls at or near the end of the economic life of the underlying asset, this criterion shall not be used for purposes of classifying the lease. • The present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already reflected in the lease payments equals or exceeds substantially all of the fair value of the underlying asset. • The underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. When none of these criteria are met the Company classifies the lease as an operating lease. At the commencement date, Frontline shall recognize a lease liability at the present value of the lease payments not yet paid, discounted using the discount rate for the lease at lease commencement and a right-of-use asset. The right-of-use asset shall consist of all of the lease liability, any lease payments made to the lessor at or before the commencement date, minus any lease incentives received, and any initial direct costs incurred by the lessee. Each lease payment is allocated between liability and finance charges to achieve a constant rate on the balance outstanding. The interest element of the finance cost is charged to the Consolidated Statement of Operations over the lease period. Three of the Company's finance leases were acquired as a result of the Merger and contain a profit share (contingent rental expense), which was reflected in the fair valuation of the obligations under finance lease at the date of the Merger. Any variations in the estimated profit share expense as compared to actual profit share expense incurred is accounted for as contingent rental income or expense and is recorded in the Consolidated Statement of Operations in the period in which it becomes realizable. Depreciation of vessels and equipment under finance lease is included within "Depreciation" in the Consolidated Statement of Operations. Vessels and equipment under finance lease are depreciated on a straight-line basis from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. However, if the lease transfers ownership of the underlying asset to the Company or the Company is reasonably certain to exercise an option to purchase the underlying asset, the Company depreciates the right-of-use asset to the end of the useful life of the underlying asset. Upon termination of a finance lease, any remaining assets and obligations related to the vessel are written off to the Statement of Operations. The net position, including any termination payments, are presented in Other operating gains (losses). Vessels and equipment under operating lease The Company as lessee currently has two major categories of operating leases: chartered-in vessels and leased office and other space. The Company recognizes right-of-use assets and corresponding lease liabilities for its operating leases. The Company has not elected the practical expedient to not separate lease and non-lease components for all of our leases where we are the lessee. ASC 842 also allows lessees to elect as an accounting policy not to apply the provisions of ASC 842 to short-term leases (i.e., leases with an original term of 12-months or less). Instead, a lessee may recognize the lease payments in profit or loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred. The accounting policy election for short-term leases shall be made by class of underlying asset to which the right of use relates. The Company has elected not to apply the provisions of ASC 842 to short-term leases. Where the Company is lessee, operating lease expense is recognized on a straight-line basis over the lease term. In determining the appropriate discount rate to use in calculating the present value of the Company’s contractual lease payments, the Company makes significant judgments and assumptions to estimate the incremental borrowing rate, or IBR, as the rate implicit in the Company’s leases cannot be readily determined. The incremental borrowing rate is defined as the rate of interest that a lessee would have to pay to borrow on a 100% collateralized basis over a term similar to the lease term and amount equal to the lease payments in a similar economic environment. The Company makes significant judgments and assumptions to separate lease components from non-lease components of our contracts. For purposes of determining the standalone selling price of the vessel lease and non-lease components of the Company’s time charters and voyage charters, the Company uses the residual approach given that vessel rates are highly variable depending on shipping market conditions. The Company believes that the standalone transaction price attributable to the non-lease component is more readily determinable than the price of the lease component and, accordingly, the price of the service components is estimated using cost plus a margin and the residual transaction price is attributed to the lease component. |
Newbuildings | Newbuildings The carrying value of the vessels under construction, or newbuildings, represents the accumulated costs to the balance sheet date which the Company has had to pay by way of purchase installments and other capital expenditures together with capitalized interest and associated finance costs. No charge for depreciation is made until the vessel is available for use. |
Goodwill and impairment of goodwill | Goodwill and impairment of goodwill Goodwill arising from a business combination, being the value of purchase consideration in excess of amounts allocable to identifiable assets and liabilities is not amortized and is subject to annual review for impairment or more frequently should indications of impairment arise. For purposes of performing the impairment test of goodwill, we have established that the Company has one reporting unit: tankers. Impairment of goodwill in excess of amounts allocable to identifiable assets and liabilities is determined using a two-step approach, initially based on a comparison of the fair value of the reporting unit to the book value of its net assets; if the fair value of the reporting unit is lower than the book value of its net assets, then the second step compares the implied fair value of the Company's goodwill with its carrying value to measure the amount of the impairment. The Company has selected September 30 as its annual goodwill impairment testing date. Goodwill is tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. |
Interest expense | Interest expense Interest costs are expensed as incurred except for interest costs that are capitalized. Interest expenses are capitalized during construction of newbuildings based on accumulated expenditures for the applicable project at the Company's current rate of borrowing. The amount of interest expense capitalized in an accounting period shall be determined by applying an interest rate, or the capitalization rate, to the average amount of accumulated expenditures for the asset during the period. The capitalization rates used in an accounting period shall be based on the rates applicable to borrowings outstanding during the period. The Company does not capitalize amounts beyond the actual interest expense incurred in the period. If the Company's financing plans associate a specific new borrowing with a qualifying asset, the Company uses the rate on that borrowing as the capitalization rate to be applied to that portion of the average accumulated expenditures for the asset that does not exceed the amount of that borrowing. If average accumulated expenditures for the asset exceed the amounts of specific new borrowings associated with the asset, the capitalization rate to be applied to such excess shall be a weighted average of the rates applicable to other borrowings of the Company. |
Impairment of long-lived assets | Impairment of long-lived assets The carrying values of long-lived assets held and used by the Company and newbuildings are reviewed whenever events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable. Such indicators may include depressed spot rates, depressed secondhand tanker values and issues at the shipyard. The Company assesses recoverability of the carrying value of each asset or newbuilding on an individual basis by estimating the future net cash flows expected to result from the asset, including eventual disposal. In developing estimates of future cash flows, the Company must make assumptions about future performance, with significant assumptions being related to charter rates, ship operating expenses, utilization, drydocking requirements, residual values, the estimated remaining useful lives of the vessels and the probability of lease terminations. These assumptions are based on historical trends as well as future expectations. If the future net undiscounted cash flows are less than the carrying value of the asset, or the current carrying value plus future newbuilding commitments, an impairment loss is recorded equal to the difference between the asset's or newbuildings carrying value and fair value. In addition, long-lived assets to be disposed of are reported at the lower of carrying amount and fair value less estimated costs to sell. |
Deferred charges | Deferred charges Loan costs, including debt arrangement fees, are capitalized and amortized on a straight-line basis over the term of the relevant loan. The straight line basis of amortization approximates the effective interest method. Amortization of loan costs is included in interest expense. If a loan is repaid early, any unamortized portion of the related deferred charges is charged against income in the period in which the loan is repaid. The Company has recorded debt issuance costs (i.e. deferred charges) as a direct deduction from the carrying amount of the related debt. |
Trade accounts receivable | Trade accounts receivable Trade and other receivables are presented net of allowances for doubtful balances. If amounts become uncollectible, they are charged against income when that determination is made. |
Revenue and expense recognition | Revenue and expense recognition The Company recognizes revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled for those goods or services. To do so, the Company performs the following five steps: (1) identifies the contract(s) with a customer; (2) identifies the performance obligations of the contract; (3) determines the transaction price; (4) allocates the transaction price to the performance obligations in the contract; and (5) recognizes revenue when (or as) the Company satisfies a performance obligation. Our shipping revenues are primarily generated from time charters and voyage charters. In a time charter voyage, the vessel is hired by the charterer for a specified period of time in exchange for consideration which is based on a daily hire rate. Generally, the charterer has the discretion over the ports visited, shipping routes and vessel speed. The contract/charter party generally provides typical warranties regarding the speed and performance of the vessel. The charter party generally has some owner protective restrictions such that the vessel is sent only to safe ports by the charterer and carries only lawful or non hazardous cargo. In a time charter contract, we are responsible for all the costs incurred for running the vessel such as crew costs, vessel insurance, repairs and maintenance and lubes. The charterer bears the voyage related costs such as bunker expenses, port charges, canal tolls during the hire period. The performance obligations in a time charter contract are satisfied over term of the contract beginning when the vessel is delivered to the charterer until it is redelivered back to us. The charterer generally pays the charter hire in advance of the upcoming contract period. Time charter contracts, bareboat contracts and the lease component in those voyage charter contracts which we consider to be leases are accounted for under ASC 840 Leases up until December 31, 2018 and under ASC 842 leases thereafter, and revenues are recorded over the term of the charter as a service is provided. When a time charter contract is linked to an index, we recognize revenue for the applicable period based on the actual index for that period. In a voyage charter contract, the charterer hires the vessel to transport a specific agreed-upon cargo for a single voyage. The consideration in such a contract is determined on the basis of a freight rate per metric ton of cargo carried or occasionally on a lump sum basis. The charterer is responsible for any short loading of cargo or "dead" freight. The voyage charter party generally has standard payment terms with freight paid on completion of discharge. The voyage charter party generally has a "demurrage" clause. As per this clause, the charterer reimburses us for any potential delays exceeding the allowed laytime as per the charter party clause at the ports visited, which is recorded as voyage revenue, as such, demurrage is considered variable consideration under the contract. Estimates and judgments are required in ascertaining the most likely outcome of a particular voyage and actual outcomes may differ from estimates. Such estimates are reviewed and updated over the term of the voyage charter contract. In a voyage charter contract, the performance obligations begin to be satisfied once the vessel begins loading the cargo. The Company has determined that its voyage charter contracts, that qualify for accounting under ASC 606, consist of a single performance obligation of transporting the cargo within a specified time period. Therefore, the performance obligation is met evenly as the voyage progresses, and the revenue is recognized on a straight line basis over the voyage days from the commencement of loading to completion of discharge. Contract assets with regards to voyage revenues are reported as "Voyages in progress" as the performance obligation is satisfied over time. Voyage revenues typically become billable and due for payment on completion of the voyage and discharge of the cargo, at which point the receivable is recognized as "Trade accounts receivable, net". In a voyage contract, the Company bears all voyage related costs such as fuel costs, port charges and canal tolls. To recognize costs incurred to fulfill a contract as an asset, the following criteria shall be met: (i) the costs relate directly to the contract, (ii) the costs generate or enhance resources of the entity that will be used in satisfying performance obligations in the future and (iii) the costs are expected to be recovered. The costs incurred during the period prior to commencement of loading the cargo, primarily bunkers, are deferred as they represent setup costs and recorded as a current asset and are subsequently amortized on a straight-line basis as we satisfy the performance obligations under the contract. Costs incurred to obtain a contract, such as commissions, are also deferred and expensed over the same period. Costs incurred during the performance of a voyage are expensed as incurred. For our vessels operating under revenue sharing agreements, or in pools, revenues and voyage expenses are pooled and allocated to each pool’s participants on a time charter equivalent income, or TCE, basis in accordance with an agreed-upon formula. Revenues generated through revenue sharing agreements are presented gross when we are considered the principal under the charter parties with the net income allocated under the revenue sharing agreement presented as other operating income, net. For revenue sharing agreements that meet the definition of a lease, we account for such contracts as variable rate operating leases and recognize revenue for the applicable period based on the actual net revenue distributed by the pool. Rental payments from the Company's sales-type lease are allocated between lease service revenue, lease interest income and repayment of net investment in leases. The amount allocated to lease service revenue is based on the estimated fair value, at the time of entering the lease agreement, of the services provided which consist of ship management and operating services. Other income primarily comprises income earned from the commercial and technical management of related party and third party vessels and newbuilding supervision fees derived from related parties and third parties. Other revenues are recognized over time on a straight line basis using the accruals method as the services are provided and performance obligations are met. |
Other operating (losses) gains | Other operating (losses) gains Other operating (losses) gains relate to (i) gains and losses on the termination of finance leases before the expiration of the lease term, which are accounted for by removing the carrying value of the asset and obligation, with a gain or loss recognized for the difference. Gains and losses on the termination of leases are accounted for when the lease is terminated and the vessel is redelivered to the owners, (ii) gains and losses on the sale of vessels, which are recognized when the vessel has been delivered and all risks have been transferred and are determined by comparing the proceeds received with the carrying value of the vessel and (iii) gains or losses from pooling and other revenue sharing arrangements where the Company is considered the principal under the charter parties and records voyage revenues and costs gross, with the adjustments required as a result of the revenue sharing arrangement being recognized as other operating gains or losses. |
Drydocking | Drydocking Normal vessel repair and maintenance costs are expensed when incurred. The Company recognizes the cost of a drydocking at the time the drydocking takes place, that is, it applies the "expense as incurred" method. |
Contingent rental income (expense) | Contingent rental income (expense) Contingent rental income (expense) results from the Company's finance leases acquired as a result of the Merger. Any variations in the estimated profit share expense that was included in the fair valuation of these lease obligations on the date of the Merger as compared to actual profit share expense incurred is accounted for as contingent rental income (expense). Any contingent rental expense on operating leases is recorded as charter hire expense. When a lease is terminated, the estimated profit share included with the lease obligation, as calculated at the time of the Merger, is written off to other operating gains or losses in the Consolidated Statement of Operations. |
Financial instruments | Financial instruments In determining the fair value of its financial instruments, the Company uses a variety of methods and assumptions that are based on market conditions and risks existing at each balance sheet date. All methods of assessing fair value result in a general approximation of value, and such value may never actually be realized. |
Derivatives | Derivatives Interest rate and bunker swaps The Company enters into interest rate and bunker swap transactions from time to time to hedge a portion of its exposure to floating interest rates and movements in bunker prices. These transactions involve the conversion of floating rates into fixed rates over the life of the transactions without an exchange of underlying principal. The fair values of the interest rate and bunker swap contracts are recognized as assets or liabilities. None of the interest rate and bunker swaps qualify for hedge accounting and changes in fair values are recognized in 'gain (loss) on derivatives' in the Consolidated Statement of Operations. Cash outflows and inflows resulting from derivative contracts are presented as cash flows from operations in the Consolidated Statement of Cash Flows. |
Earnings per share | Earnings per share Basic earnings per share is computed based on the income available to ordinary shareholders and the weighted average number of shares outstanding. Diluted earnings per share includes the effect of the assumed conversion of potentially dilutive instruments. ASC 260 defines issued shares that are held in escrow and all or part must be returned if specified conditions are not met as "contingently returnable" and as such are omitted from the calculation of basic earnings per share. Such shares are included in diluted earnings per share. |
Share-based compensation | Share-based compensation The Company accounts for share-based payments in accordance with ASC Topic 718 "Compensation – Stock Compensation", under which the fair value of issued stock options is expensed over the period in which the options vest. |
Recent Accounting Pronouncements | In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which revises guidance for the accounting for credit losses on financial instruments within its scope. The new standard introduces an approach, based on expected losses, to estimate credit losses on certain types of financial instruments and modifies the impairment model for available-for-sale debt securities. In April 2019, the FASB issued ASU No. 2019-04, Codification improvements to Financial instruments-Credit Losses, (Topic 326) , which includes amendments related to the estimate of equity method losses. In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments-Credit Losses , which clarifies that receivables arising from operating leases are not within the scope of Subtopic 326-20. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases . The accounting standard updates are effective January 1, 2020. Entities are required to apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. Based on the Company's evaluation, these standard updates will not materially impact its consolidated financial statements and related disclosures on adoption. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and other (Topic 350), which simplifies the test for goodwill impairment. The accounting update eliminates Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of the assets acquired and liabilities assumed in a business combination. Instead an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, however the loss recognized should not exceed the total amount of goodwill allocated to the reporting unit. The accounting standard update is effective January 1, 2020. The Company will apply the one step approach in our quantitative assessments thereafter which may result in the recognition of impairment losses sooner as compared to the two-step impairment test. Management does not expect the adoption of this accounting standard to have a material impact on the Company’s consolidated financial statements on adoption. In August 2018, the FASB issued ASU 2018-13 Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. This update removes, modifies and adds specific disclosure requirements in relation to fair value measurement with the aim of improving the effectiveness of disclosures to the financial statements. The accounting standard update is effective January 1, 2020 and the Company will disclose the required information in our consolidated financial statements and related disclosures thereafter. Management does not expect the adoption of this accounting standard to have a material impact on the Company’s consolidated financial statements In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808) , to provide clarity on when transactions between entities in a collaborative arrangement should be accounted for under the new revenue standard, ASC 606. In determining whether transactions in collaborative arrangements should be accounted under the revenue standard, the update specifies that entities shall apply unit of account guidance to identify distinct goods or services and whether such goods and services are separately identifiable from other promises in the contract. The accounting update also precludes entities from presenting transactions with a collaborative partner which are not in scope of the new revenue standard together with revenue from contracts with customers. The accounting standard update is effective January 1, 2020 and the adoption of the accounting standard update is not expected to have a material impact on our consolidated financial statements and related disclosures. Accounting Standards Updates, recently adopted ASC 842 (Leases) The Company has adopted ASC 842 effective January 1, 2019 using the modified retrospective transition approach, which allows the Company to recognize a cumulative effect adjustment to the opening balance of accumulated deficit in the period of adoption rather than restate our comparative prior year periods. Based on the Company's analysis, the cumulative effect adjustment to the opening balance of accumulated deficit is zero because (i) the Company did not have any unamortized initial direct costs as of January 1, 2019 that needed to be written off; (ii) the Company did not have any lease incentives or accrued rental transactions that needed to be recognized; and (iii) the timing and pattern of revenue recognition under its revenue contracts that have lease and non-lease components is the same and even if accounted for separately, the lease component of such contracts would be considered operating leases. Upon adoption of ASC 842, the Company has recognized right-of-use assets and corresponding lease liabilities of $18.5 million on the balance sheet in relation to our operating leases, which have then been amortized during the year ended December 31, 2019. The implementation of this standard has not caused a material change in the Company's operating expenses in the fiscal year 2019. For arrangements where we are the lessor, the adoption of the new lease standard has not had a material impact on our financial statements. ASU 2018-07 (ASC 718 Compensation - Stock Compensation) The Company has adopted this update effective January 1, 2019. The amendments in this update expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. An entity should apply the requirements of Topic 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost (that is, the period of time over which share-based payment awards vest and the pattern of cost recognition over that period). The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers. Consistent with the accounting requirement for employee share-based payment awards, nonemployee share-based payment awards within the scope of Topic 718 are measured at grant-date fair value of the equity instruments that an entity is obligated to issue when the good has been delivered or the service has been rendered and any other conditions necessary to earn the right to benefit from the instruments have been satisfied. Equity-classified nonemployee share- based payment awards are measured at the grant date. The definition of the term grant date was also amended to generally state the date at which a grantor and a grantee reach a mutual understanding of the key terms and conditions of a share-based payment award. Consistent with the accounting for employee share-based payment awards, an entity considers the probability of satisfying performance conditions when nonemployee share-based payment awards contain such conditions. An entity should only remeasure liability-classified awards that have not been settled by the date of adoption and equity-classified awards for which a measurement date has not been established through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. Upon transition, the entity is required to measure these nonemployee awards at fair value as of the adoption date. No such remeasurement is required upon adoption of the Update by the Company. The revised definition of the grant date of share-based awards has been applied in accounting for the share consideration transferred to Trafigura on signing of the SPA. The shares have been accounted for as prepaid consideration at the grant date when a mutual understanding of the key terms and conditions for the issuance is reached on signing of the SPA and furthermore the shares are legally issued to Trafigura. Further details of the accounting for the transaction are disclosed in Note 5. ASU No. 2014-09 (ASC 606 Revenue from Contracts with Customers) In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, or ASC 606, which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. We adopted the provisions of ASC 606 on January 1, 2018 using the modified retrospective approach. As such, the comparative information has not been restated and continues to be reported under the accounting standards in effect for periods prior to January 1, 2018. Under the modified retrospective approach, we recognized the cumulative effect of adopting this standard as a net adjustment amounting to $16.6 million to increase the opening balance of Accumulated Deficit as of January 1, 2018. ASC 606 has been applied to those contracts that were not completed at the date of initial application. The cumulative effect of the adjustments made to our condensed consolidated statement position at January 1, 2018 from the adoption of ASC 606 was as follows: Condensed Consolidated Balance Sheet (in thousands of $) December 31, 2017 Adjustments for ASC 606 January 1, 2018 Assets Voyages in progress 38,254 (20,303 ) 17,951 Other current assets 13 3,071 3,084 Liabilities Accrued expenses 38,809 (601 ) 38,208 Equity Accumulated deficit (272,503 ) (16,631 ) (289,134 ) The impact of the adoption of ASC 606 on our condensed consolidated balance sheets, condensed consolidated income statements of operations and condensed consolidated statements of cash flow for 2018 were as follows: Condensed Consolidated Statement of Financial Position Balance at December 31, 2018 (in thousands of $) As reported Adjustments for ASC 606 Balance without ASC 606 Assets Voyages in progress 59,437 (31,850 ) 91,287 Other current assets 5,359 5,410 (51 ) Liabilities Accrued expenses 37,031 (959 ) 37,990 Equity Accumulated deficit (295,118 ) (25,481 ) (269,637 ) Condensed Consolidated Income Statement For the period ended December 31, 2018 (in thousands of $) As reported Adjustments for ASC 606 Balance without ASC 606 — Voyage charter revenues 690,901 (11,548 ) 702,449 Voyage expenses and commission 377,772 (2,698 ) 380,470 Net (loss) income (8,398 ) (8,850 ) 452 Basic and diluted loss per share attributable to the Company (0.05 ) 0.05 — Condensed Consolidated Statement of Cash Flows For the period ended December 31, 2018 (in thousands of $) As reported Adjustments for ASC 606 Balance without ASC 606 Net loss (8,398 ) (8,850 ) 452 Change in operating assets and liabilities (38,695 ) 8,850 (47,545 ) Net cash provided by operating activities 46,171 — 46,171 In accordance with ASC 606, we have applied the practical expedient not to disclose the aggregate amount of the transaction price allocated to the remaining performance obligations, or when the Company expects to recognize this as revenue for these contracts given that the original expected contract duration is less than one year. In accordance with ASC 606, we have applied the available exemptions not to disclose the nature of performance obligations and the remaining duration of performance obligations. Time charter contracts are considered operating leases and therefore do not fall under the scope of ASC 606 because (i) the vessel is an identifiable asset (ii) we do not have substantive substitution rights and (iii) the charterer has the right to control the use of the vessel during the term of the contract and derives the economic benefits from such use. Time charter contracts and other contracts considered to be leases continue to be accounted as operating leases in accordance with ASC 840 Leases up until December 31, 2018 and under ASC 842 leases thereafter and related interpretations. The implementation of the new revenue standard therefore did not have an effect on income recognition from such contracts or on the lease component from such contracts. Since the Company has used the modified retrospective method for adopting ASC 606, the prior years have not been restated, therefore the provisions of ASC 605 remain applicable for these periods. Under ASC 605, the following critical accounting policies were applicable: Revenues and expenses were recognized on the accruals basis. Voyage revenues were recognized ratably over the estimated length of each voyage and, therefore, are allocated between reporting periods based on the relative transit time in each period. Voyage expenses were recognized as incurred. The Company previously used a discharge-to-discharge basis in determining percentage of completion for all spot voyages and voyages servicing contracts of affreightment whereby it recognized revenue ratably from when product is discharged at the end of one voyage to when it is discharged after the next voyage. However, the Company did not recognize revenue if a charter has not been contractually committed to by a customer and the Company, even if the vessel has discharged its cargo and was sailing to the anticipated load port on its next voyage. Revenues and voyage expenses of the vessels operating in pool arrangements are pooled and the resulting net pool revenues, calculated on a time charter equivalent basis, are allocated to the pool participants according to an agreed formula on the basis of the number of days a vessel operates in the pool. The pool participants are responsible for paying voyage expenses. Adjustments between the pool participants are settled on a quarterly basis. Pool revenues are reported as voyage charter revenues for all periods presented. Rental payments from the Company's sales-type lease are allocated between lease service revenue, lease interest income and repayment of net investment in leases. The amount allocated to lease service revenue is based on the estimated fair value, at the time of entering the lease agreement, of the services provided which consist of ship management and operating services. In January 2016, the FASB issued ASU 2016-01 Financial instruments, Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in this update require all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). The amendments in this update also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition, the amendments in this update eliminate the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities and the requirement for to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet for public business entities. As a result of the adoption of the standard, we present the change in the fair value of our marketable equity securities in our consolidated statements of operations. In our opening balance at January 1, 2018, we recognized a decrease of $2.9 million in accumulated deficit. In 2018, we recognized a mark to market loss of $3.5 million of these equity securities. In August 2016, the FASB issued ASU No. 2016-15, Statement of cash flows (Topic 230): Classification of certain cash receipts and cash payments. This ASU addresses the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (COLIs) (including bank-owned life insurance policies (BOLIs)); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. When a reporting entity applies the equity method of accounting to an investment it should make a policy election to classify distributions received from the equity method investee as follows: • Cumulative earnings approach - distributions received are considered returns on investment and classified as cash inflows from operating activities unless the investor's cumulative distributions received in prior periods exceed the cumulative equity in earnings of the investee. when such an excess occurs the current period distribution up to this excess should be classified as a cash inflow from investing activity. • Nature of distribution approach - distributions received should be classified based on the nature of the activity of the investee that generated the distribution as either a return of investments (cash inflow from investing activity) or a return on investment (cash inflow from operating activities) The amendments in this Update were applied using a retrospective transition method to each period presented. The adoption of this Update did not have a significant impact on these condensed consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of cash flows (Topic 230): Restricted Cash. The new standard requires that the statement of cash flows explains the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The amendments in this Update were applied using a retrospective transition method to each period presented. As a result of the adoption of the standard, we have classified restricted cash as a component of cash, cash equivalents and restricted cash in the consolidated statements of cash flows for all periods presented. In the beginning of period 2018 and 2017 balances, restricted cash of $1.4 million and $0.7 million , respectively, have been aggregated with cash and cash equivalents in the beginning of period line items at the bottom of the statements of cash flows for each period presented. The adoption of this Update did not have a significant impact on these condensed consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting. The update provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The amendments in this Update did not have a material impact on our consolidated financial statements and related disclosures upon adoption. |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | ASC 606 has been applied to those contracts that were not completed at the date of initial application. The cumulative effect of the adjustments made to our condensed consolidated statement position at January 1, 2018 from the adoption of ASC 606 was as follows: Condensed Consolidated Balance Sheet (in thousands of $) December 31, 2017 Adjustments for ASC 606 January 1, 2018 Assets Voyages in progress 38,254 (20,303 ) 17,951 Other current assets 13 3,071 3,084 Liabilities Accrued expenses 38,809 (601 ) 38,208 Equity Accumulated deficit (272,503 ) (16,631 ) (289,134 ) The impact of the adoption of ASC 606 on our condensed consolidated balance sheets, condensed consolidated income statements of operations and condensed consolidated statements of cash flow for 2018 were as follows: Condensed Consolidated Statement of Financial Position Balance at December 31, 2018 (in thousands of $) As reported Adjustments for ASC 606 Balance without ASC 606 Assets Voyages in progress 59,437 (31,850 ) 91,287 Other current assets 5,359 5,410 (51 ) Liabilities Accrued expenses 37,031 (959 ) 37,990 Equity Accumulated deficit (295,118 ) (25,481 ) (269,637 ) Condensed Consolidated Income Statement For the period ended December 31, 2018 (in thousands of $) As reported Adjustments for ASC 606 Balance without ASC 606 — Voyage charter revenues 690,901 (11,548 ) 702,449 Voyage expenses and commission 377,772 (2,698 ) 380,470 Net (loss) income (8,398 ) (8,850 ) 452 Basic and diluted loss per share attributable to the Company (0.05 ) 0.05 — Condensed Consolidated Statement of Cash Flows For the period ended December 31, 2018 (in thousands of $) As reported Adjustments for ASC 606 Balance without ASC 606 Net loss (8,398 ) (8,850 ) 452 Change in operating assets and liabilities (38,695 ) 8,850 (47,545 ) Net cash provided by operating activities 46,171 — 46,171 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of goodwill | (in thousands of $) Goodwill Accumulated impairment losses Net carrying value Balance as of December 31, 2017 225,273 (112,821 ) 112,452 Balance as of December 31, 2018 225,273 (112,821 ) 112,452 Balance as of December 31, 2019 225,273 (112,821 ) 112,452 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Components of the numerator for the calculation of basic and diluted earnings per share | The components of the numerator and the denominator in the calculation of basic and diluted earnings per share are as follows: (in thousands of $) 2019 2018 2017 Net income (loss) attributable to the Company 139,972 (8,880 ) (264,861 ) (in thousands) 2019 2018 2017 Weighted average number of shares 173,576 169,810 169,809 Dilutive effect of contingently returnable shares 5,598 — — Dilutive effect of share options 141 — — Denominator for diluted earnings per share 179,315 169,810 169,809 2019 2018 2017 Cash dividends per share declared $0.10 $0.00 $0.30 |
OPERATING REVENUES (Tables)
OPERATING REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Lease and Non-Lease Components of Revenue | The lease and non-lease components of our revenues were as follows: (in thousands of $) Lease Non-lease Total Time charter revenues 35,433 — 35,433 Voyage charter revenues 292,720 594,775 887,495 Finance lease interest income 690 — 690 Other income — 33,704 33,704 Total 328,843 628,479 957,322 |
Schedule of Contract Assets | As at December 31, 2019 and December 31, 2018, 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 $) 2019 2018 Voyages in progress 26,021 59,437 Trade accounts receivable 42,104 52,278 Related party receivables 9,137 3,084 Other current assets 4,491 5,359 Total 81,753 120,158 |
OTHER OPERATING GAINS (Tables)
OTHER OPERATING GAINS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
GAIN ON SALE OF ASSETS AND AMORTIZATION OF DEFERRED GAINS [Abstract] | |
GAIN ON SALE OF ASSETS AND AMORTIZATION OF DEFERRED GAINS | (in thousands of $) 2019 2018 2017 Insurance recoveries 3,737 — — Other gains 628 — — Gain on termination of vessel leases — 10,324 2,379 Gain (loss) on pool arrangements (943 ) (118 ) 2 3,422 10,206 2,381 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Operating Lease Maturity | The future minimum lease payments under the Company's non-cancellable operating leases as at December 31, 2019 are as follows: (in thousands of $) 2020 5,412 2021 2,039 2022 1,707 2023 1,578 2024 1,567 Thereafter 1,186 Total minimum lease payments 13,489 Less: Imputed interest (1,012 ) Present value of operating lease liabilities 12,477 |
Maturity Under Previous Guidance | The future minimum lease payments under the Company's non-cancellable operating leases as at December 31, 2018 are as follows: (in thousands of $) 2019 17,348 2020 6,682 2021 550 2022 181 2023 41 Thereafter — 24,802 |
Lease Payments to be Received, Maturity | The future minimum lease payments to be received under these contracts as of December 31, 2019 are as follows: (in thousands of $) 2020 47,709 2021 51,830 2022 28,968 2023 — 2024 — Thereafter — Total minimum lease payments 128,507 |
Schedule of minimum future revenues on leases | The future minimum lease payments to be received under non-cancellable operating lease contracts as of December 31, 2018 are as follows: (in thousands of $) 2019 7,037 2020 117 2021 — 2022 — 2023 — Thereafter — Total minimum lease payments 7,154 |
INVESTMENT IN FINANCE LEASE (Ta
INVESTMENT IN FINANCE LEASE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INVESTMENT IN FINANCE LEASE [Abstract] | |
Components of investments in sales-type leases | The components of the investment in the sales-type lease are summarized as follows: (in thousands of $) 2019 2018 Net minimum lease payments receivable 157 11,651 Estimated residual values of leased property (unguaranteed) 10,822 10,821 Less: finance lease interest income — (690 ) Total investment in sales-type lease 10,979 21,782 Current portion 157 10,803 Long-term portion 10,822 10,979 10,979 21,782 |
Minimum future gross revenues under non-cancellable sales-type leases | The minimum future gross revenues to be received under the sales-type lease as of December 31, 2019 are as follows: (in thousands of $) 2020 157 2021 — 2022 — 2023 — 2024 — Thereafter — 157 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Marketable Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | The cost of sale of available-for-sale marketable securities is calculated on an average cost basis. (in thousands of $) 2019 2018 Balance at the beginning of the year 836 19,231 Repurchase of marketable securities pledged to creditors 8,392 10,272 Disposals — (16,749 ) Unrealized gain (loss) 1,737 (3,526 ) Marketable securities pledged to creditors (7,323 ) (8,392 ) Total 3,642 836 |
TRADE ACCOUNTS RECEIVABLE, NET
TRADE ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of movements in the allowance for doubtful accounts | Movements in the allowance for doubtful accounts in the three years ended December 31, 2019 are summarized as follows; (in thousands of $) Balance at December 31, 2016 6,170 Additions charged to income — Deductions credited to income (172 ) Balance at December 31, 2017 5,998 Deductions credited to income (203 ) Balance at December 31, 2018 5,795 Deductions credited to income (2,847 ) Balance at December 31, 2019 2,948 |
NEWBUILDINGS (Tables)
NEWBUILDINGS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
NEWBUILDINGS [Abstract] | |
Summary roll forward of new build information | Movements in the three years ended December 31, 2019 are summarized as follows: (in thousands of $) Balance at December 31, 2016 308,324 Additions, net, continuing basis 707,988 Transfer to Vessels and equipment, net (941,388 ) Interest capitalized, continuing basis 4,678 Balance at December 31, 2017 79,602 Additions, net, continuing basis 201,653 Transfer to Vessels and equipment, net (230,596 ) Interest capitalized, continuing basis 1,595 Balance at December 31, 2018 52,254 Additions, net, continuing basis 158,846 Transfer to Vessels and equipment, net (166,121 ) Interest capitalized, continuing basis 1,089 Balance at December 31, 2019 46,068 |
Newbuildings transfered to vessels and equipment [Table Text Block] | The following table sets forth certain details of our newbuildings delivered in the three years ended December 31, 2019: (in thousands of $) Vessel name Vessel type Date of delivery Front Discovery VLCC April 2019 Front Defender VLCC January 2019 Front Empire VLCC January 2018 Front Princess VLCC January 2018 Front Polaris LR2/ Aframax January 2018 Front Classic Suezmax January 2017 Front Vega LR2/ Aframax January 2017 Front Antares LR2/ Aframax January 2017 Front Duchess VLCC February 2017 Front Clipper Suezmax March 2017 Front Crystal Suezmax April 2017 Front Sirius LR2/ Aframax April 2017 Front Coral Suezmax May 2017 Front Cosmos Suezmax June 2017 Front Castor LR2/ Aframax June 2017 Front Cascade Suezmax July 2017 Front Earl VLCC July 2017 Front Pollux LR2/ Aframax August 2017 Front Capella LR2/ Aframax September 2017 Front Prince VLCC September 2017 |
OTHER RECEIVABLES (Tables)
OTHER RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
OTHER RECEIVABLES [Abstract] | |
Schedule of Other Receivables | (in thousands of $) 2019 2018 Claims receivable 5,178 9,690 Agent receivables 3,474 3,733 Other receivables 16,816 3,645 25,468 17,068 |
VESSELS AND EQUIPMENT, NET (Tab
VESSELS AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary Rollforward of Vessels and equipment | Movements in the three years ended December 31, 2019 are summarized as follows: (in thousands of $) Cost Accumulated Depreciation Net Carrying Value Balance at December 31, 2016 1,635,011 (157,616 ) 1,477,395 Transfers from Newbuildings 941,388 — Additions 894 — Depreciation — (77,547 ) Balance at December 31, 2017 2,577,293 (235,163 ) 2,342,130 Depreciation — (96,438 ) Additions 467 — Transfers from Newbuildings 230,596 — Balance at December 31, 2018 2,808,356 (331,601 ) 2,476,755 Depreciation — (102,000 ) Additions 39,029 — Transfers from Newbuildings 166,121 — Balance at December 31, 2019 3,013,506 (433,601 ) 2,579,905 |
VESSELS UNDER FINANCE LEASE, _2
VESSELS UNDER FINANCE LEASE, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases, Capital [Abstract] | |
Schedule of Book Value of Leased Assets | Movements in the three years ended December 31, 2019 are summarized as follows: (in thousands of $) Cost Accumulated Depreciation Net Carrying Value Balance at December 31, 2016 607,449 (71,016 ) 536,433 Impairment loss (187,379 ) 4,727 Lease termination (61,075 ) 23,192 Depreciation — (64,200 ) Balance at December 31, 2017 358,995 (107,297 ) 251,698 Lease termination (218,494 ) 83,601 Depreciation — (26,129 ) Balance at December 31, 2018 140,501 (49,825 ) 90,676 Additions 343,564 — Depreciation — (15,850 ) Balance at December 31, 2019 484,065 (65,675 ) 418,390 |
Schedule of Finance Lease Maturities | The outstanding obligations under finance leases as of December 31, 2019 are payable as follows: (in thousands of $) 2020 291,964 2021 17,557 2022 16,419 2023 17,557 2024 16,468 Thereafter 25,920 Minimum lease payments 385,885 Less: imputed interest (25,975 ) Present value of obligations under finance leases 359,910 |
Vessels Under Terminated Finance Leases | The following table sets forth certain details of vessel lease terminations in the years ended December 31, 2018 and December 31, 2017. There were no lease terminations in the year ended December 31, 2019: (in thousands of $) Vessel Year Termination agreed Termination date Termination (payment)/ receipt Gain/ (loss) on termination Front Circassia 2018 February 2018 February 2018 (8,891 ) (5,811 ) Front Page 2018 June 2018 July 2018 (3,375 ) 2,638 Front Stratus 2018 June 2018 August 2018 (3,375 ) 2,144 Front Serenade 2018 June 2018 September 2018 (3,375 ) 2,426 Front Ariake 2018 October 2018 October 2018 (3,375 ) 3,523 Front Falcon 2018 November 2018 December 2018 — 5,404 Vessels terminated in 2018 (22,391 ) 10,324 Front Ardenne 2017 July 2017 August 2017 (4,853 ) (5,824 ) Front Scilla 2017 May 2017 June 2017 (6,465 ) (7,341 ) Front Brabant 2017 May 2017 May 2017 (3,578 ) (5,021 ) Front Century 2017 November 2016 March 2017 (4,110 ) 20,565 Vessels terminated in 2017 (19,006 ) 2,379 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued expenses | (in thousands of $) 2019 2018 Voyage expenses 33,984 15,934 Ship operating expenses 27,248 7,879 Administrative expenses 4,540 2,365 Interest expense 9,132 9,914 Taxes 709 727 Other 132 212 75,745 37,031 |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | (in thousands of $) 2019 2018 Deferred charter revenue 4,975 304 Other 2,570 3,600 7,545 3,904 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-term debt | (in thousands of $) 2019 2018 U.S. dollar denominated floating rate debt $500.1 million term loan facility 347,689 385,792 $60.6 million term loan facility 44,126 47,594 $466.5 million term loan facility 264,752 281,273 $109.2 million term loan facility 89,929 96,353 $328.4 million term loan facility 230,805 246,079 $321.6 million term loan facility 241,127 260,108 $110.5 million term loan facility (ING) 106,189 51,413 $110.5 million term loan facility (Credit Suisse) 112,190 103,747 $110.5 million term loan facility (Credit Suisse #2) 117,098 52,636 Total U.S. dollar denominated floating rate debt 1,553,905 1,524,995 U.S. dollar denominated fixed rate debt $275.0 million revolving credit facility 120,000 186,000 Total U.S. dollar denominated fixed rate debt 120,000 186,000 Credit facilities 23 32 Secured borrowings 7,329 7,631 Promissory notes 20,084 21,894 Total debt 1,701,341 1,740,552 Short-term debt and current portion of long-term debt 438,962 120,479 Deferred charges 7,962 9,780 Long-term portion of debt 1,254,417 1,610,293 |
Debt repayment schedule | The outstanding debt as of December 31, 2019 is repayable as follows: (in thousands of $) 2020 438,962 2021 558,928 2022 57,808 2023 219,290 2024 125,077 Thereafter 301,276 1,701,341 |
Assets pledged | Assets pledged (in thousands of $) 2019 2018 Vessels, net 2,578,135 2,475,649 |
Deferred charges | Deferred charges (in thousands of $) 2019 2018 Debt arrangement fees 16,831 17,490 Accumulated amortization (8,869 ) (7,710 ) 7,962 9,780 |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SHARE CAPITAL [Abstract] | |
Schedule of stock by class | The following table summarizes the movement in the number of shares outstanding during the two years ended December 31, 2019 ; Outstanding shares at December 31, 2017 169,809,324 Shares issuance in the year 11,868 Outstanding shares at December 31, 2018 169,821,192 Shares issued under ATM program 11,037,273 Shares issued as consideration for Trafigura acquisition 16,035,856 Outstanding shares at December 31, 2019 196,894,321 |
SHARE OPTIONS (Tables)
SHARE OPTIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Valuation Assumptions | The fair value of the granted option awards was estimated on the date of grant using a Black-Scholes option valuation model with the following assumptions: July 2016 November 2018 Risk free interest rate 0.69 % 2.78 % Expected life (years) 3.5 1.6 Expected volatility 79.80 % 38.24 % Expected dividend yield 0.00 % 0.00 % |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Derivative Instruments | The interest rate swaps are not designated as hedges and are summarized as at December 31, 2019 as follows: Notional Amount Inception Date Maturity Date Fixed Interest Rate ($000s) 12,892 June 2013 June 2020 1.4025 % 38,546 September 2013 September 2020 1.5035 % 65,645 December 2013 December 2020 1.6015 % 12,690 March 2014 March 2021 1.6998 % 13,033 June 2014 June 2021 1.7995 % 13,376 September 2014 September 2021 1.9070 % 150,000 February 2016 February 2026 2.1970 % 306,182 |
Carrying Value and Estimated Fair Value of Financial Instruments | The carrying value and estimated fair value of the Company's financial instruments as of December 31, 2019 and 2018 are as follows: 2019 2018 (in thousands of $) Carrying Value Fair Value Carrying Value Fair Value Assets: Cash and cash equivalents 174,223 174,223 66,484 66,484 Restricted cash 3,153 3,153 1,420 1,420 Liabilities: Floating rate debt 1,553,928 1,553,928 1,525,028 1,525,028 Fixed rate debt 147,413 146,225 215,524 212,696 |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The estimated fair value of financial assets and liabilities are as follows: (in thousands of $) 2019 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents 174,223 174,223 — — Restricted cash 3,153 3,153 — — Liabilities: Floating rate debt 1,553,928 — 1,553,928 — Fixed rate debt 146,225 — 7,329 138,896 (in thousands of $) 2018 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents 66,484 66,484 — — Restricted cash 1,420 1,420 — — Liabilities: Floating rate debt 1,525,028 — 1,525,028 — Fixed rate debt 212,696 — 7,631 205,065 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of leasing transactions with Ship Finance | A summary of leasing transactions with SFL in the years ended December 31, 2019 , 2018 and 2017 are as follows; (in thousands of $) 2019 2018 2017 Charter hire paid (principal and interest) 11,745 47,324 75,055 Lease termination payments — (22,391 ) (19,006 ) Lease interest expense 6,940 16,400 25,980 Contingent rental income (2,607 ) (19,738 ) (26,148 ) Remaining lease obligation 87,930 99,784 299,016 |
Schedule of net amounts earned (incurred) from related parties excluding Ship Finance | A summary of net amounts earned from (paid to) related parties for the years ended December 31, 2019 , 2018 and 2017 are as follows: (in thousands of $) 2019 2018 2017 Seatankers Management Co. Ltd 18,878 7,152 3,420 SFL 1,591 2,001 3,473 Golden Ocean 6,851 7,138 6,671 Seatankers Management Norway AS (705 ) (735 ) (767 ) Arcadia Petroleum Limited 3,197 — — Seadrill Limited 367 279 470 Archer Limited 418 317 238 Flex LNG Ltd 1,195 1,788 4,432 North Atlantic Drilling Ltd — 29 37 Avance Gas 518 — — Other related parties 197 101 67 |
Schedule of related party receivables | A summary of balances due from related parties at December 31, 2019 and 2018 is as follows: (in thousands of $) 2019 2018 SFL 4,982 1,653 Seatankers Management Co. Ltd 5,490 2,657 Archer Limited 94 173 Golden Ocean 3,593 2,370 Seadrill Limited 554 538 Arcadia Petroleum Limited — — Flex LNG Ltd 391 210 North Atlantic Drilling Ltd 25 116 Avance Gas 240 Other related parties 212 178 15,581 7,895 |
Schedule of Related Party Payables | A summary of balances due to related parties at December 31, 2019 and 2018 is as follows: (in thousands of $) 2019 2018 SFL Corporation Ltd 9,193 8,886 Seatankers Management Co. Ltd 4,037 3,236 Golden Ocean 6,241 5,558 Flex LNG Ltd 636 1,058 Avance Gas 79 — 20,186 18,738 |
GENERAL (Details)
GENERAL (Details) shares in Thousands, dwt in Millions | Mar. 16, 2020suezmax_tanker | Dec. 31, 2019dwt | Dec. 31, 2019vessel | Dec. 31, 2019suezmax_tanker | Dec. 31, 2019very_large_crude_carrier | Dec. 31, 2019tanker_size | Dec. 31, 2019T | Dec. 31, 2019aframax_tanker | Dec. 31, 2019large_range_2_tanker | Dec. 31, 2018very_large_crude_carrier | Dec. 31, 2017very_large_crude_carrier | Dec. 31, 2017large_range_2_tanker | Dec. 31, 2016MR_product_tanker | Nov. 30, 2015shares | Feb. 01, 2013MR_product_tanker |
Related Party Transaction [Line Items] | |||||||||||||||
Share exchange ratio in reverse acquisition | 2.55 | ||||||||||||||
Number of sizes of oil tankers | tanker_size | 2 | ||||||||||||||
Number of vessels in fleet | vessel | 71 | ||||||||||||||
Aggregate vessel capacity (in dry wattage tonnage) | dwt | 13.5 | ||||||||||||||
Number of vessels owned | 48 | 16 | 14 | 18 | |||||||||||
Number of vessels under finance lease | 3 | 5 | 3 | ||||||||||||
Number of vessels to be acquired under SPA | suezmax_tanker | 10 | ||||||||||||||
Number of vessels recorded as investment in finance lease | very_large_crude_carrier | 1 | ||||||||||||||
Number of vessels under commercial management | 7 | 2 | 2 | ||||||||||||
Number of newbuild vessels | 1 | 1 | 4 | 2 | 4 | 1 | 6 | 12 | |||||||
VLCC Vessels | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Number of vessels chartered in | very_large_crude_carrier | 2 | ||||||||||||||
Number of vessels under commercial management | very_large_crude_carrier | 3 | ||||||||||||||
Reverse acquisition | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Common stock, shares, issued as merger consideration (in shares) | shares | 583,600 | ||||||||||||||
Common stock, shares, outstanding in Frontline 2012 prior to reverse acquisition and reverse stock split (in shares) | shares | 249,100 | ||||||||||||||
Treasury stock (in shares) | shares | 6,800 | ||||||||||||||
Common stock, shares, outstanding that the Company owns in Frontline 2012 prior to merger (in shares) | shares | 13,460 | ||||||||||||||
Forecast | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Number of vessels to be acquired under SPA | suezmax_tanker | 5 | ||||||||||||||
Minimum | VLCC Vessels | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Vessel size | 200,000 | ||||||||||||||
Minimum | Suzemax Tanker | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Vessel size | 120,000 | ||||||||||||||
Minimum | LR2 tanker | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Vessel size | 111,000 | ||||||||||||||
Maximum | VLCC Vessels | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Vessel size | 320,000 | ||||||||||||||
Maximum | Suzemax Tanker | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Vessel size | 170,000 | ||||||||||||||
Maximum | LR2 tanker | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Vessel size | 115,000 |
ACCOUNTING POLICIES (Details)
ACCOUNTING POLICIES (Details) | 12 Months Ended | ||
Dec. 31, 2019reporting_unitrecycling_marketlease | Jan. 31, 2019 | Jun. 30, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Number of leases acquired through merger | lease | 3 | ||
Ownership percentage | 28.90% | 20.00% | |
Average period over which market price of scrap per ton is calculated | 10 years | ||
Number of recycling markets | recycling_market | 3 | ||
Number of reporting units | reporting_unit | 1 | ||
Vessel | |||
Property, Plant and Equipment [Line Items] | |||
Estimated remaining economic useful life | 25 years | ||
Other equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated remaining economic useful life | 5 years | ||
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Ownership percentage | 20.00% | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Ownership percentage | 50.00% |
RECENT ACCOUNTING PRONOUNCEME_3
RECENT ACCOUNTING PRONOUNCEMENTS - Accounting Pronouncements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2019 | Jan. 01, 2019 | Jan. 01, 2018 | Dec. 31, 2017 | |
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Right-of-use assets | $ 0 | $ 12,058 | $ 18,500 | ||
Lease liabilities | 12,477 | $ 18,500 | |||
Retained earnings (accumulated deficit) | 295,118 | 155,146 | $ 289,134 | ||
Equity securities, FV-NI, realized gain (loss) | 3,500 | ||||
Restricted cash | 1,420 | $ 3,153 | $ 700 | ||
Adjustments for ASC 606 | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Retained earnings (accumulated deficit) | 25,481 | $ 16,600 | $ 16,631 | ||
Accounting Standards Update 2016-01 | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Retained earnings (accumulated deficit) | $ (2,900) |
RECENT ACCOUNTING PRONOUNCEME_4
RECENT ACCOUNTING PRONOUNCEMENTS - Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Voyages in progress | $ 71,339 | $ 59,437 | $ 17,951 | |
Other current assets | 6,526 | 5,359 | 3,084 | |
Accrued expenses | 75,745 | 37,031 | 38,208 | |
Retained deficit | $ (155,146) | (295,118) | (289,134) | |
Balance without ASC 606 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Voyages in progress | 91,287 | $ 38,254 | ||
Other current assets | 13 | |||
Accrued expenses | 37,990 | 38,809 | ||
Retained deficit | (269,637) | (272,503) | ||
Adjustments for ASC 606 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Voyages in progress | (31,850) | (20,303) | ||
Other current assets | 5,410 | 3,071 | ||
Accrued expenses | (959) | (601) | ||
Retained deficit | $ (25,481) | $ (16,600) | $ (16,631) |
RECENT ACCOUNTING PRONOUNCEME_5
RECENT ACCOUNTING PRONOUNCEMENTS - Condensed Consolidated Statement of Financial Position (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Voyages in progress | $ 71,339 | $ 59,437 | $ 17,951 | |
Current assets | 6,526 | 5,359 | 3,084 | |
Other current liabilities | (7,545) | (3,904) | ||
Accrued expenses | 75,745 | 37,031 | 38,208 | |
Retained deficit | $ (155,146) | (295,118) | (289,134) | |
Adjustments for ASC 606 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Voyages in progress | (31,850) | $ (20,303) | ||
Current assets | 5,410 | 3,071 | ||
Accrued expenses | (959) | (601) | ||
Retained deficit | (25,481) | $ (16,600) | (16,631) | |
Balance without ASC 606 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Voyages in progress | 91,287 | 38,254 | ||
Current assets | 13 | |||
Other current liabilities | (51) | |||
Accrued expenses | 37,990 | 38,809 | ||
Retained deficit | $ (269,637) | $ (272,503) |
RECENT ACCOUNTING PRONOUNCEME_6
RECENT ACCOUNTING PRONOUNCEMENTS - Condensed Consolidated Income Statement (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Voyage charter revenues | $ 957,322 | $ 742,266 | $ 646,326 |
Voyage expenses and commission | 395,482 | 377,772 | 259,334 |
Net income (loss) | 139,986 | $ (8,398) | (264,322) |
Basic and diluted earnings per share attributable to the Company (in dollars per share) | $ (0.05) | ||
Adjustments for ASC 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Voyage expenses and commission | $ (2,698) | ||
Net income (loss) | $ (8,850) | ||
Basic and diluted earnings per share attributable to the Company (in dollars per share) | $ 0.05 | ||
Balance without ASC 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Voyage expenses and commission | $ 380,470 | ||
Net income (loss) | $ 452 | ||
Basic and diluted earnings per share attributable to the Company (in dollars per share) | $ 0 | ||
Voyage charter revenues | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Voyage charter revenues | $ 887,495 | $ 690,901 | $ 518,156 |
Voyage charter revenues | Adjustments for ASC 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Voyage charter revenues | (11,548) | ||
Voyage charter revenues | Balance without ASC 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Voyage charter revenues | $ 702,449 |
RECENT ACCOUNTING PRONOUNCEME_7
RECENT ACCOUNTING PRONOUNCEMENTS - Condensed Consolidated Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net income (loss) | $ 139,986 | $ (8,398) | $ (264,322) |
Change in operating assets and liabilities | (38,695) | ||
Net cash provided by operating activities | $ 280,187 | 46,171 | $ 130,485 |
Adjustments for ASC 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net income (loss) | (8,850) | ||
Change in operating assets and liabilities | 8,850 | ||
Net cash provided by operating activities | 0 | ||
Balance without ASC 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net income (loss) | 452 | ||
Change in operating assets and liabilities | (47,545) | ||
Net cash provided by operating activities | $ 46,171 |
GOODWILL (Details)
GOODWILL (Details) | Feb. 03, 2016 | Feb. 28, 2016 | Dec. 31, 2017USD ($)$ / shares | Nov. 30, 2015USD ($) | Dec. 31, 2019USD ($)reporting_unit | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)$ / shares | Feb. 29, 2016$ / shares |
Goodwill [Roll Forward] | ||||||||
Goodwill | $ 225,273,000 | $ 225,273,000 | $ 225,273,000 | $ 225,273,000 | ||||
Accumulated impairment losses | (112,821,000) | (112,821,000) | (112,821,000) | (112,821,000) | ||||
Goodwill | $ 112,452,000 | $ 112,452,000 | 112,452,000 | $ 112,452,000 | ||||
Share price (in dollars per share) | $ / shares | $ 15.15 | |||||||
Reverse stock split, conversion ratio | 0.2 | 5 | ||||||
Acquired goodwill | $ 225,300,000 | |||||||
Number of reporting units | reporting_unit | 1 | |||||||
Share price decrease/increase movement | $ / shares | $ 1.45 | $ 1.45 | ||||||
Share price movement since impairment testing date | 24.00% | 24.00% | ||||||
Market capitalization | $ 779,000,000 | $ 779,000,000 | ||||||
Share price (in dollars per share) | $ / shares | $ 4.59 | $ 4.59 | ||||||
Fair value of company | $ 1,013,000,000 | $ 1,013,000,000 | ||||||
Carrying value of company | 1,300,000,000 | 1,300,000,000 | ||||||
Estimate fair value of assets/liabilities | 901,000,000 | 901,000,000 | ||||||
Implied fair value of goodwill | 112,500,000 | 112,500,000 | ||||||
Impairment loss on goodwill | $ 112,800,000 | $ 0 | $ 0 | $ 112,821,000 | ||||
Measurement Input, Control Premium | ||||||||
Goodwill [Roll Forward] | ||||||||
Fair value inputs, control premium | 0.30 | 0.30 |
TRAFIGURA TRANSACTION (Details)
TRAFIGURA TRANSACTION (Details) | Aug. 23, 2019USD ($)$ / sharesshares | Aug. 31, 2019USD ($)vesselsuezmax_tanker$ / sharesshares | Dec. 31, 2019USD ($)vesselshares | Dec. 31, 2018USD ($)large_range_2_tankershares | Dec. 31, 2017USD ($)shares | Dec. 31, 2019suezmax_tanker | Dec. 31, 2019USD ($) | Dec. 31, 2019 | Dec. 31, 2019$ / shares | Dec. 31, 2019large_range_2_tanker | Dec. 31, 2016USD ($) |
Business Acquisition [Line Items] | |||||||||||
Shares issued for purchase of vessels (in shares) | shares | 16,035,856 | 16,035,856 | 0 | 0 | |||||||
Cash consideration due upon closing of SPA | $ 538,200,000 | ||||||||||
Number of assets chartered | 1 | 1 | 1 | ||||||||
Number of leased assets | vessel | 5 | ||||||||||
Shares issued for purchase of assets, grant date fair value (in dollars per share) | $ / shares | $ 7.92 | $ 7.92 | |||||||||
Finance lease, right of use asset | $ 90,676,000 | $ 251,698,000 | $ 418,390,000 | $ 536,433,000 | |||||||
Finance lease liability | 359,910,000 | ||||||||||
Finance lease, amortization of right of use asset | 15,850,000 | $ 26,129,000 | $ 64,200,000 | ||||||||
Shares issued as consideration for Trafigura acquisition | $ 127,000,000 | ||||||||||
Vessels Chartered To Trafigura | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Number of assets chartered | 5 | 5 | |||||||||
Duration of time charter | 3 years | ||||||||||
Time charter daily rate, revenue | 28,400 | ||||||||||
Profit share percentage | 50.00% | ||||||||||
Assets Under Sale and Purchase Agreement | Trafigura | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Number of assets agreed to acquire | suezmax_tanker | 10 | ||||||||||
Shares issued for purchase of vessels (in shares) | shares | 16,035,856 | ||||||||||
Shares issued, price per share (in dollars per share) | $ / shares | $ 8 | ||||||||||
Time charter daily rate, expense | $ 23,000 | ||||||||||
Duration of time charter | 3 years | ||||||||||
Time charter daily rate, revenue | $ 28,400 | ||||||||||
Profit share percentage | 50.00% | ||||||||||
Number of assets optional to acquire | suezmax_tanker | 4 | ||||||||||
Assets Under Sale and Purchase Agreement | Trafigura | Minimum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash consideration due upon closing of SPA | $ 538,200,000 | ||||||||||
Assets Under Sale and Purchase Agreement | Trafigura | Maximum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash consideration due upon closing of SPA | $ 551,700,000 | ||||||||||
Assets Under Sale and Purchase Agreement | Trafigura | Vessels Chartered To Trafigura | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Shares issued for purchase of vessels (in shares) | shares | 8,017,928 | ||||||||||
Number of assets chartered | suezmax_tanker | 5 | 5 | |||||||||
Shares issued for purchase of assets, grant date fair value (in dollars per share) | $ / shares | $ 7.92 | ||||||||||
Shares issued as consideration for Trafigura acquisition | $ 63,500,000 | ||||||||||
Time charter payments received | $ 9,900,000 | ||||||||||
Time charter payments received offset against prepaid expense | 8,200,000 | ||||||||||
Time charter payments received offset against lease liability | 1,700,000 | ||||||||||
Assets Under Sale and Purchase Agreement | Trafigura | Vessels Chartered To Trafigura | Minimum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash consideration due upon closing of SPA | 275,800,000 | ||||||||||
Assets Under Sale and Purchase Agreement | Trafigura | Vessels Chartered To Trafigura | Maximum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash consideration due upon closing of SPA | 269,000,000 | ||||||||||
Assets Under Sale and Purchase Agreement | Trafigura | Trafigura Vessels Not Chartered Out | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Number of leased assets | suezmax_tanker | 5 | 5 | |||||||||
Prepaid expense | $ 63,500,000 | ||||||||||
Shares issued for purchase of assets, grant date fair value (in dollars per share) | $ / shares | $ 7.92 | ||||||||||
Finance lease, right of use asset | 336,000,000 | ||||||||||
Finance lease liability | $ 272,000,000 | ||||||||||
Finance lease, amortization of right of use asset | 3,800,000 | ||||||||||
Finance lease, interest expense | 3,800,000 | ||||||||||
Finance lease, weighted average discount rate | 4.36% | ||||||||||
Assets Under Sale and Purchase Agreement | Trafigura | Trafigura Vessels Not Chartered Out | Minimum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash consideration due upon closing of SPA | 275,900,000 | ||||||||||
Assets Under Sale and Purchase Agreement | Trafigura | Trafigura Vessels Not Chartered Out | Maximum | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash consideration due upon closing of SPA | $ 269,200,000 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019segmentcustomer | Dec. 31, 2018USD ($)customer | Dec. 31, 2017customer | |
Revenue from External Customer [Line Items] | |||
Number of reportable segments | segment | 1 | ||
Number of major customers for revenue purposes | 0 | 0 | |
Maximum percentage consolidated operating revenues from individual major customers (in hundredths) | 10.00% | 10.00% | |
Major Customer 1 [Member] | |||
Revenue from External Customer [Line Items] | |||
Number of major customers for revenue purposes | 1 | ||
Maximum percentage consolidated operating revenues from individual major customers (in hundredths) | 10.00% | ||
Revenue from major customer | $ | $ 81.1 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Percentage of transportation revenue from sources within the United States | 50.00% | ||
Revenue tax rate percentage | 4.00% | ||
Revenue tax expense | $ 0 | $ 0 | $ 0 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 23, 2019 | Aug. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | |||||
Shares issued for purchase of vessels (in shares) | 16,035,856 | 16,035,856 | 0 | 0 | |
Dilutive shares included in calculation (in shares) | 141,000 | ||||
Antidilutive shares excluded from calculation (in shares) | 1,317,000 | 1,170,000 | |||
Net income attributable to the Company | $ 139,972 | $ (8,880) | $ (264,861) | ||
Weighted average number of shares (in shares) | 173,576,000 | 169,810,000 | 169,809,000 | ||
Dilutive effect of contingently returnable shares (in shares) | 5,598,000 | 0 | 0 | ||
Dilutive effect of share options (in shares) | 141,000 | 0 | 0 | ||
Denominator for diluted earnings per share (in shares) | 179,315,000 | 169,810,000 | 169,809,000 | ||
Cash dividends per share declared (in dollars per share) | $ 0.1 | $ 0 | $ 0.3 | ||
Trafigura | Assets Under Sale and Purchase Agreement | |||||
Property, Plant and Equipment [Line Items] | |||||
Shares issued for purchase of vessels (in shares) | 16,035,856 | ||||
Shares issued for asset purchase, disposed from escrow account (in shares) | 4,198,447 | ||||
Shares issued for asset purchase, contingently returnable (in shares) | 11,837,409 |
OPERATING REVENUES - Disaggrega
OPERATING REVENUES - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Lease | $ 328,843 | ||
Non-lease | 628,479 | ||
Total operating revenues | 957,322 | $ 742,266 | $ 646,326 |
Time charter revenues | |||
Disaggregation of Revenue [Line Items] | |||
Lease | 35,433 | ||
Non-lease | 0 | ||
Total operating revenues | 35,433 | 26,067 | 106,237 |
Voyage charter revenues | |||
Disaggregation of Revenue [Line Items] | |||
Lease | 292,720 | ||
Non-lease | 594,775 | ||
Total operating revenues | 887,495 | 690,901 | 518,156 |
Finance lease interest income | |||
Disaggregation of Revenue [Line Items] | |||
Lease | 690 | ||
Non-lease | 0 | ||
Total operating revenues | 690 | 1,293 | 1,748 |
Other income | |||
Disaggregation of Revenue [Line Items] | |||
Lease | 0 | ||
Non-lease | 33,704 | ||
Total operating revenues | $ 33,704 | $ 24,005 | $ 20,185 |
OPERATING REVENUES - Narrative
OPERATING REVENUES - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Contract assets | $ 81,753,000 | $ 120,158,000 |
Capitalized Contract Cost, Impairment Loss | 0 | |
Balance Capitalized In The Current Year | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Capitalized contract costs, gross | 5,300,000 | 9,100,000 |
Capitalized contract cost, amortization | 800,000 | 3,700,000 |
Contract assets | 4,500,000 | $ 5,400,000 |
Balance Capitalized In Prior Year | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Capitalized contract cost, amortization | $ 5,400,000 |
OPERATING REVENUES - Contract A
OPERATING REVENUES - Contract Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Capitalized Contract Cost [Line Items] | ||
Contract assets | $ 81,753 | $ 120,158 |
Voyages in progress | ||
Capitalized Contract Cost [Line Items] | ||
Contract assets | 26,021 | 59,437 |
Trade accounts receivable | ||
Capitalized Contract Cost [Line Items] | ||
Contract assets | 42,104 | 52,278 |
Related party receivables | ||
Capitalized Contract Cost [Line Items] | ||
Contract assets | 9,137 | 3,084 |
Other current assets | ||
Capitalized Contract Cost [Line Items] | ||
Contract assets | $ 4,491 | $ 5,359 |
OTHER OPERATING GAINS - Summary
OTHER OPERATING GAINS - Summary of Contracts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
GAIN ON SALE OF ASSETS AND AMORTIZATION OF DEFERRED GAINS [Abstract] | |||
Insurance recoveries | $ 3,737 | $ 0 | $ 0 |
Other gains | 628 | 0 | 0 |
Gain on termination of vessel leases | 0 | 10,324 | 2,379 |
Gain (loss) on pool arrangements | (943) | (118) | 2 |
Other operating (losses) gains | $ 3,422 | $ 10,206 | $ 2,381 |
OTHER OPERATING GAINS - Additio
OTHER OPERATING GAINS - Additional Information (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019USD ($)vesselsuezmax_tanker | Dec. 31, 2018USD ($)very_large_crude_carrier | Dec. 31, 2017suezmax_tanker | Dec. 31, 2017very_large_crude_carrier | Dec. 31, 2017USD ($) | |
Property, Plant and Equipment [Line Items] | |||||
Insurance recoveries | $ 3,737 | $ 0 | $ 0 | ||
Other gains | 628 | 0 | 0 | ||
Gain on pooling arrangements | 600 | $ 100 | |||
Number of vessels with terminated leases | 6 | 2 | 2 | ||
Gain on termination of vessel leases | 0 | $ 10,324 | $ 2,379 | ||
SFL | |||||
Property, Plant and Equipment [Line Items] | |||||
Loss on pooling arrangements | $ 1,500 | $ 200 | |||
Number of owned pooled assets | suezmax_tanker | 2 | ||||
Number of third party pooled assets | vessel | 2 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | 1 Months Ended | 12 Months Ended | ||||||||||
Jan. 31, 2019suezmax_tanker | Sep. 30, 2018large_range_2_tanker | Jul. 31, 2018suezmax_tanker | Dec. 31, 2019USD ($)suezmax_tanker | Dec. 31, 2018USD ($)vessellarge_range_2_tanker | Dec. 31, 2017USD ($) | Dec. 31, 2019vessel | Dec. 31, 2019suezmax_tanker | Dec. 31, 2019USD ($) | Dec. 31, 2019 | Dec. 31, 2019large_range_2_tanker | Aug. 31, 2019vessel | |
Lessee, Lease, Description [Line Items] | ||||||||||||
Number of leased assets, finance leases | vessel | 5 | |||||||||||
Lease term | 2 years | |||||||||||
Lease expense | $ 11,200,000 | $ 23,200,000 | $ 21,200,000 | |||||||||
Payments for operating leases | $ 10,800,000 | |||||||||||
Operating lease, weighted average discount rate | 3.90% | |||||||||||
Operating lease, weighted average remaining lease term | 4 years | |||||||||||
Number of assets chartered, fixed rate | 1 | 1 | 1 | |||||||||
Number of assets chartered, index linked | 2 | 0 | ||||||||||
Ship operating expense | ||||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||||
Non-lease component | $ 6,600,000 | |||||||||||
Charter hire expense | ||||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||||
Lease expense | 8,500,000 | |||||||||||
Administrative expense | ||||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||||
Lease expense | $ 2,700,000 | |||||||||||
Ship Finance Leased Vessels | ||||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||||
Number of leased assets, finance leases | vessel | 3 | 3 | ||||||||||
Trafigura Vessels | ||||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||||
Number of leased assets, finance leases | vessel | 0 | 5 | ||||||||||
Other Leased Vessels | ||||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||||
Number of leased assets, operating leases | vessel | 2 | 2 | ||||||||||
Vessels Chartered To Trafigura | ||||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||||
Number of assets chartered, fixed rate | 5 | 5 | ||||||||||
Duration of time charter | 3 years | |||||||||||
Time charter daily rate, revenue | $ 28,400 | |||||||||||
Profit share percentage | 50.00% | |||||||||||
Assets Leased to Others | ||||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||||
Vessels | $ 158,800,000 | 239,400,000 | ||||||||||
Accumulated depreciation | 12,300,000 | $ 47,800,000 | ||||||||||
July 2018 Lease Arrangement | ||||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||||
Number of vessels leased out on fixed rate time charters with profit sharing agreements | suezmax_tanker | 1 | |||||||||||
Revenue on index linked time charters | $ 5,200,000 | 2,700,000 | ||||||||||
Profit share income | 1,600,000 | |||||||||||
September 2018 Lease Arrangement | ||||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||||
Number of vessels leased out on fixed rate time charters with profit sharing agreements | large_range_2_tanker | 1 | |||||||||||
Revenue on index linked time charters | 5,000,000 | $ 2,400,000 | ||||||||||
January 2019 Lease Arrangement | ||||||||||||
Lessee, Lease, Description [Line Items] | ||||||||||||
Number of vessels leased out on fixed rate time charters with profit sharing agreements | suezmax_tanker | 1 | |||||||||||
Profit share income | $ 0 |
LEASES - Maturities of Operatin
LEASES - Maturities of Operating Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
2020 | $ 5,412 | |
2021 | 2,039 | |
2022 | 1,707 | |
2023 | 1,578 | |
2024 | 1,567 | |
Thereafter | 1,186 | |
Total minimum lease payments | 13,489 | |
Less: Imputed interest | (1,012) | |
Obligations under operating lease | $ 12,477 | $ 18,500 |
LEASES - Maturities Under Prior
LEASES - Maturities Under Prior Guidance (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 17,348 |
2020 | 6,682 |
2021 | 550 |
2022 | 181 |
2023 | 41 |
Thereafter | 0 |
Total | $ 24,802 |
LEASES - Rental Income To Be Co
LEASES - Rental Income To Be Collected (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 47,709 |
2021 | 51,830 |
2022 | 28,968 |
2023 | 0 |
2024 | 0 |
Thereafter | 0 |
Total minimum lease payments | $ 128,507 |
LEASES - Rental Income Under Pr
LEASES - Rental Income Under Prior Guidance (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 7,037 |
2020 | 117 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
Thereafter | 0 |
Total minimum lease payments | $ 7,154 |
RESTRICTED CASH (Details)
RESTRICTED CASH (Details) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2019USD ($)vessel | Dec. 31, 2019suezmax_tanker | Dec. 31, 2019very_large_crude_carrier | Dec. 31, 2019USD ($) | Dec. 31, 2019 | Dec. 31, 2018USD ($) | |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Cash required to be maintained for covenant compliance | $ 38.3 | $ 37.9 | ||||
Debt instrument, covenant compliance, cash required to be maintained, percentage | 50.00% | 50.00% | ||||
Number of vessels under finance lease | 3 | 5 | 3 | |||
Cash buffer per vessel, covenant compliance | $ 2 | |||||
SFL | ||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||||
Cash buffer per vessel, covenant compliance | $ 2 | |||||
Cash surplus required for vessel leasing agreements | $ 13.1 | $ 3.5 |
INVESTMENT IN FINANCE LEASE (De
INVESTMENT IN FINANCE LEASE (Details) $ in Thousands | Dec. 31, 2019USD ($)vessel | Dec. 31, 2018USD ($)vessel |
Vessels Accounted for as Sales Type Leases [Abstract] | ||
Number of vessels leased to third parties on time charter classified as investment in finance lease (in vessels) | vessel | 1 | 1 |
Components of the investment in sales-type leases [Abstract] | ||
Net minimum lease payments receivable | $ 11,651 | |
Sales-type Lease, Residual Value of Leased Asset | $ 10,822 | |
Estimated residual values of leased property (unguaranteed) | 10,821 | |
Less: finance lease interest income | (690) | |
Total investment in sales-type lease | 10,979 | |
Total investment in sales-type lease | 21,782 | |
Current portion | 157 | |
Current portion | 10,803 | |
Long-term portion | 10,822 | |
Long-term portion | $ 10,979 | |
Future minimum gross revenues [Abstract] | ||
2020 | 157 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
Thereafter | 0 | |
Total minimum future gross revenues | $ 157 |
MARKETABLE SECURITIES - Schedul
MARKETABLE SECURITIES - Schedule of Changes in Marketable Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Marketable Securities [Abstract] | |||
Balance at the beginning of the year | $ 836 | $ 19,231 | |
Repurchase of marketable securities pledged to creditors | 8,392 | 10,272 | |
Disposals | 0 | 16,749 | |
Unrealized gain (loss) | 1,737 | (3,526) | $ 0 |
Marketable securities pledged to creditors | (7,323) | (8,392) | |
Total | $ 3,642 | $ 836 | $ 19,231 |
MARKETABLE SECURITIES - Narrati
MARKETABLE SECURITIES - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||||||||
Secured debt, repurchase agreements | $ 7,700 | $ 7,700 | |||||||
Shares committed | $ 7,323 | $ 8,392 | $ 7,323 | 8,392 | |||||
Gain (loss) from marketable securities reclassified to Consolidated Statement of Operations | 0 | 0 | $ 571 | ||||||
Avance Gas | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Unrealized gain (loss) on investments | 1,900 | (600) | |||||||
Golden Ocean | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Unrealized gain (loss) on investments | $ (400) | $ (2,500) | |||||||
Number of shares held (in shares) | 1,300,000 | 1,300,000 | 1,300,000 | 1,300,000 | |||||
Proceeds from sale of marketable securities | $ 7,200 | $ 7,600 | $ 6,700 | $ 6,600 | |||||
Forward contract, number of shares to be repurchased (in shares) | 1,300,000 | 1,300,000 | 1,300,000 | 1,300,000 | |||||
Secured debt, repurchase agreements | $ 7,200 | $ 7,600 | $ 6,700 | $ 6,600 | $ 6,600 | $ 7,200 | |||
Payments to acquire marketable securities | 500 | $ 1,200 | $ 100 | $ 1,000 | |||||
Liability for marketable securities transaction | $ 7,300 | 7,300 | |||||||
DHT Holdings | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Unrealized gain (loss) on investments | 3,000 | ||||||||
Proceeds from sale of marketable securities | $ 17,800 | $ 27,400 | |||||||
Number of shares disposed (in shares) | 4,700,000 | 6,200,000 | |||||||
Available for sale securities, number of shares acquired (in shares) | 10,900,000 | ||||||||
Payments to acquire available for sale securities | $ 46,100 | ||||||||
Marketable securities, gain (loss) | $ 1,000 | 1,100 | |||||||
Gain (loss) from marketable securities reclassified to Consolidated Statement of Operations | $ 600 | ||||||||
SFL | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Unrealized gain (loss) on investments | $ 300 | $ (400) | |||||||
Number of shares held (in shares) | 100,000 | 100,000 | 100,000 | 100,000 | |||||
Avance Gas | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Marketable securities (in shares) | 442,384 | 442,384 | 442,384 | ||||||
SFL | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Marketable securities (in shares) | 73,165 | 73,383 | |||||||
Golden Ocean | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Marketable securities (in shares) | 1,270,657 | 1,270,657 | |||||||
Proceeds from sale of marketable securities | $ 7,700 | $ 7,700 | $ 7,600 | $ 7,700 | |||||
Number of shares disposed (in shares) | 1,300,000 | 1,300,000 | 1,300,000 | ||||||
Shares committed | $ 7,600 | $ 7,600 | |||||||
Number of shares pledged to creditors (in shares) | 1,260,358 | 1,260,358 |
TRADE ACCOUNTS RECEIVABLE, NE_2
TRADE ACCOUNTS RECEIVABLE, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 5,795 | $ 5,998 | $ 6,170 |
Additions charged to income | 0 | ||
Deductions credited to income | (2,847) | (203) | (172) |
Ending balance | $ 2,948 | $ 5,795 | $ 5,998 |
NEWBUILDINGS (Details)
NEWBUILDINGS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Construction in Progress [Roll Forward] | |||
Balance, beginning of period | $ 52,254 | $ 79,602 | $ 308,324 |
Additions, net, continuing basis | 158,846 | 201,653 | 707,988 |
Transfer to Vessels and equipment, net | (166,121) | (230,596) | (941,388) |
Interest capitalized, continuing basis | 1,089 | 1,595 | 4,678 |
Balance, end of period | $ 46,068 | $ 52,254 | $ 79,602 |
OTHER RECEIVABLES (Details)
OTHER RECEIVABLES (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Claims receivable | $ 5,178 | $ 9,690 | ||
Agent receivables | 3,474 | 3,733 | ||
Other receivables | 16,816 | 3,645 | ||
Other receivables, total | 25,468 | 17,068 | ||
Allowance for doubtful accounts | 2,948 | 5,795 | $ 5,998 | $ 6,170 |
Other receivables | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for doubtful accounts | $ 0 | $ 0 |
NEWBUILDINGS - Additional Infor
NEWBUILDINGS - Additional Information (Details) | 12 Months Ended | ||||||||
Dec. 31, 2019suezmax_tankervery_large_crude_carrier | Dec. 31, 2018very_large_crude_carrier | Dec. 31, 2018very_large_crude_carrierlarge_range_2_tanker | Dec. 31, 2019very_large_crude_carrier | Dec. 31, 2019large_range_2_tanker | Dec. 31, 2017very_large_crude_carrier | Dec. 31, 2017large_range_2_tanker | Dec. 31, 2016MR_product_tanker | Feb. 01, 2013MR_product_tanker | |
NEWBUILDINGS [Abstract] | |||||||||
Number of newbuild vessels | 1 | 2 | 2 | 1 | 4 | 4 | 1 | 6 | 12 |
Number of newbuildings delivered | 2 | 2 | 1 |
VESSELS AND EQUIPMENT, NET (Det
VESSELS AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Net carrying value, beginning balance | $ 2,476,755 | ||
Depreciation | (117,850) | $ (122,566) | $ (141,748) |
Net carrying value, ending balance | 2,579,905 | 2,476,755 | |
Vessels and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Balance, beginning of period | 2,808,356 | 2,577,293 | 1,635,011 |
Accumulated depreciation beginning balance | (331,601) | (235,163) | (157,616) |
Net carrying value, beginning balance | 2,476,755 | 2,342,130 | 1,477,395 |
Transfers from Newbuildings | 166,121 | 230,596 | 941,388 |
Additions | 39,029 | 467 | 894 |
Depreciation | (102,000) | (96,438) | (77,547) |
Balance, end of period | 3,013,506 | 2,808,356 | 2,577,293 |
Accumulated depreciation ending balance | (433,601) | (331,601) | (235,163) |
Net carrying value, ending balance | $ 2,579,905 | $ 2,476,755 | $ 2,342,130 |
VESSELS UNDER FINANCE LEASE, _3
VESSELS UNDER FINANCE LEASE, NET - Changes in Finance Lease Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Movement In Capital Leased Assets [Roll Forward] | ||||
Cost, beginning balance | $ 140,501 | $ 358,995 | $ 607,449 | |
Impairment loss | (187,379) | |||
Lease termination | (218,494) | (61,075) | ||
Additions | 343,564 | |||
Cost, ending balance | 484,065 | 140,501 | 358,995 | |
Movement In Capital Leased Assets, Accumulated Depreciation [Roll Forward] | ||||
Accumulated depreciation, beginning balance | (49,825) | (107,297) | (71,016) | |
Impairment loss | (4,727) | |||
Lease termination | 83,601 | 23,192 | ||
Depreciation | (15,850) | (26,129) | (64,200) | |
Accumulated depreciation, ending balance | (65,675) | (49,825) | (107,297) | |
Net Carrying Value | $ 418,390 | $ 90,676 | $ 251,698 | $ 536,433 |
VESSELS UNDER FINANCE LEASE, _4
VESSELS UNDER FINANCE LEASE, NET - Finance Lease Maturity (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Outstanding Obligations Under Capital Leases: [Abstract] | |
2020 | $ 291,964 |
2021 | 17,557 |
2022 | 16,419 |
2023 | 17,557 |
2024 | 16,468 |
Thereafter | 25,920 |
Minimum lease payments | 385,885 |
Less: imputed interest | (25,975) |
Present value of obligations under finance leases | $ 359,910 |
VESSELS UNDER FINANCE LEASE, _5
VESSELS UNDER FINANCE LEASE, NET - Additional Information (Details) shares in Millions | Feb. 03, 2016 | Dec. 31, 2018USD ($)vessellarge_range_2_tanker | Oct. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Aug. 31, 2018USD ($) | Jul. 31, 2018USD ($)vessel | Feb. 28, 2018USD ($) | Dec. 31, 2017USD ($)vessel | Aug. 31, 2017USD ($) | Jun. 30, 2017USD ($) | May 31, 2017USD ($) | Mar. 31, 2017USD ($)vessel | Feb. 28, 2016 | May 31, 2015vessel | Dec. 31, 2018USD ($)vessellarge_range_2_tanker | Sep. 30, 2018USD ($) | Dec. 31, 2019USD ($)vessel | Dec. 31, 2018USD ($)vessellarge_range_2_tankervery_large_crude_carrier | Dec. 31, 2017suezmax_tanker | Dec. 31, 2017very_large_crude_carrier | Dec. 31, 2017USD ($) | Dec. 31, 2019suezmax_tanker | Dec. 31, 2019USD ($) | Dec. 31, 2019large_range_2_tanker | Aug. 31, 2019vessel | Feb. 29, 2016shares | Jul. 01, 2015USD ($) |
Leases, Schedule of Leased Assets [Line Items] | |||||||||||||||||||||||||||
Number of leased assets | vessel | 5 | ||||||||||||||||||||||||||
Management fee income | $ 6,500 | ||||||||||||||||||||||||||
Reverse stock split, conversion ratio | 0.2 | 5 | |||||||||||||||||||||||||
Profit share expense percentage | 25.00% | ||||||||||||||||||||||||||
Cash buffer per vessel, covenant compliance | $ 2,000,000 | ||||||||||||||||||||||||||
Cash held by Frontline Shipping Ltd | $ 3,500,000 | $ 3,500,000 | $ 3,500,000 | $ 13,100,000 | |||||||||||||||||||||||
Capital Lease Obligations | 87,900,000 | ||||||||||||||||||||||||||
Minimum contractual payments | 52,900,000 | ||||||||||||||||||||||||||
Contingent rental expense payable | 35,000,000 | ||||||||||||||||||||||||||
Profit share expense | 4,800,000 | 1,500,000 | $ 5,600,000 | ||||||||||||||||||||||||
Difference In Fair Value Of Profit Share From Original Value | $ 19,700,000 | $ 19,700,000 | 19,700,000 | $ 2,200,000 | |||||||||||||||||||||||
Contingent rental income | 2,607,000 | 19,738,000 | 26,148,000 | ||||||||||||||||||||||||
Lease termination payments | 22,391,000 | 19,006,000 | |||||||||||||||||||||||||
Lease Termination Probability | 25.00% | ||||||||||||||||||||||||||
Gain (Loss) on Termination of Lease | $ 0 | $ (10,324,000) | (2,379,000) | ||||||||||||||||||||||||
Number of assets chartered | 1 | 1 | 1 | 1 | 1 | ||||||||||||||||||||||
Remaining periods on these leases, minimum (in years) | 0 years | ||||||||||||||||||||||||||
Remaining periods on these leases, maximum (in years) | 7 years | ||||||||||||||||||||||||||
Interest expense | $ 10,700,000 | $ 16,400,000 | |||||||||||||||||||||||||
VLCC Vessels | |||||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | |||||||||||||||||||||||||||
Number of leases vessels with amended terms | vessel | 12 | ||||||||||||||||||||||||||
Daily hire payable | $ 20,000 | ||||||||||||||||||||||||||
Suezmax Vessels [Member] | |||||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | |||||||||||||||||||||||||||
Number of leases vessels with amended terms | vessel | 5 | ||||||||||||||||||||||||||
Daily hire payable | 15,000 | ||||||||||||||||||||||||||
Ship Finance Leased Vessels | |||||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | |||||||||||||||||||||||||||
Management fee income | $ 9,000 | ||||||||||||||||||||||||||
Total vessels leased in on long-term time charters | vessel | 3 | 3 | 3 | 3 | |||||||||||||||||||||||
SFL | |||||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | |||||||||||||||||||||||||||
Number of leased assets | vessel | 3 | ||||||||||||||||||||||||||
Number of vessels whose lease was terminated | 3 | 6 | 2 | 2 | |||||||||||||||||||||||
Number of shares issued | shares | 11 | ||||||||||||||||||||||||||
Profit share expense percentage | 50.00% | ||||||||||||||||||||||||||
Cash buffer per vessel, covenant compliance | $ 2,000,000 | ||||||||||||||||||||||||||
Profit share expense | 4,800,000 | $ 1,500,000 | 5,600,000 | ||||||||||||||||||||||||
Contingent rental income | 2,607,000 | 19,738,000 | 26,148,000 | ||||||||||||||||||||||||
Impairment of assets under capital lease | $ 142,900,000 | $ 21,200,000 | |||||||||||||||||||||||||
Number of Leased Vessels Impaired | vessel | 9 | 4 | |||||||||||||||||||||||||
Lease termination payments | $ 0 | $ 22,391,000 | $ 19,006,000 | ||||||||||||||||||||||||
Front Circassia | SFL | |||||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | |||||||||||||||||||||||||||
Interest rate notes | 7.50% | ||||||||||||||||||||||||||
Reduction in capital lease obligation | $ 20,600,000 | ||||||||||||||||||||||||||
Gain (Loss) on Termination of Lease | 5,811,000 | ||||||||||||||||||||||||||
Front Page | SFL | |||||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | |||||||||||||||||||||||||||
Gain (Loss) on Termination of Lease | $ (2,638,000) | ||||||||||||||||||||||||||
Front Stratus | SFL | |||||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | |||||||||||||||||||||||||||
Gain (Loss) on Termination of Lease | $ (2,144,000) | ||||||||||||||||||||||||||
Front Serenade | SFL | |||||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | |||||||||||||||||||||||||||
Gain (Loss) on Termination of Lease | $ (2,426,000) | ||||||||||||||||||||||||||
Front Ariake | SFL | |||||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | |||||||||||||||||||||||||||
Interest rate notes | 7.50% | ||||||||||||||||||||||||||
Gain (Loss) on Termination of Lease | $ (3,523,000) | ||||||||||||||||||||||||||
Front Falcon | SFL | |||||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | |||||||||||||||||||||||||||
Lease termination payments | $ 0 | ||||||||||||||||||||||||||
Gain (Loss) on Termination of Lease | $ (5,404,000) | ||||||||||||||||||||||||||
Front Century | SFL | |||||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | |||||||||||||||||||||||||||
Lease termination payments | $ 4,110,000 | ||||||||||||||||||||||||||
Gain (Loss) on Termination of Lease | $ (20,565,000) | ||||||||||||||||||||||||||
Front Scilla | SFL | |||||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | |||||||||||||||||||||||||||
Lease termination payments | $ 6,465,000 | ||||||||||||||||||||||||||
Gain (Loss) on Termination of Lease | $ 7,341,000 | ||||||||||||||||||||||||||
Front Brabant | SFL | |||||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | |||||||||||||||||||||||||||
Lease termination payments | $ 3,578,000 | ||||||||||||||||||||||||||
Gain (Loss) on Termination of Lease | $ 5,021,000 | ||||||||||||||||||||||||||
Front Ardenne | SFL | |||||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | |||||||||||||||||||||||||||
Lease termination payments | $ 4,853,000 | ||||||||||||||||||||||||||
Gain (Loss) on Termination of Lease | $ 5,824,000 | ||||||||||||||||||||||||||
Front Page, Front Stratus, Front Serenade | SFL | |||||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | |||||||||||||||||||||||||||
Interest rate notes | 7.50% | ||||||||||||||||||||||||||
Reduction in capital lease obligation | $ 92,100,000 | ||||||||||||||||||||||||||
Gain (Loss) on Termination of Lease | (7,200,000) | ||||||||||||||||||||||||||
Front Ariake, Front Falcon | SFL | |||||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | |||||||||||||||||||||||||||
Reduction in capital lease obligation | $ 55,200,000 | ||||||||||||||||||||||||||
Gain (Loss) on Termination of Lease | (8,900,000) | ||||||||||||||||||||||||||
Non cash element | Front Circassia | SFL | |||||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | |||||||||||||||||||||||||||
Lease termination payments | $ 8,891,000 | ||||||||||||||||||||||||||
Non cash element | Front Page | SFL | |||||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | |||||||||||||||||||||||||||
Lease termination payments | $ 3,375,000 | ||||||||||||||||||||||||||
Non cash element | Front Stratus | SFL | |||||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | |||||||||||||||||||||||||||
Lease termination payments | $ 3,375,000 | ||||||||||||||||||||||||||
Non cash element | Front Serenade | SFL | |||||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | |||||||||||||||||||||||||||
Lease termination payments | $ 3,375,000 | ||||||||||||||||||||||||||
Non cash element | Front Ariake | SFL | |||||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | |||||||||||||||||||||||||||
Lease termination payments | $ 3,375,000 | ||||||||||||||||||||||||||
Non cash element | Front Page, Front Stratus, Front Serenade | SFL | |||||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | |||||||||||||||||||||||||||
Lease termination payments | $ 10,100,000 | ||||||||||||||||||||||||||
Vessels Chartered To Trafigura | |||||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | |||||||||||||||||||||||||||
Number of assets chartered | 5 | 5 |
EQUITY METHOD INVESTMENTS (Deta
EQUITY METHOD INVESTMENTS (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2019 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |||||
Ownership percentage | 28.90% | 20.00% | |||
Investment in associated company | $ 6,000 | $ 0 | $ 6,000 | $ 0 | |
Share of results of associated company | $ 1,681 | $ 246 | $ 0 | ||
Ownsership interest purchased by FMSI | 30.80% | ||||
Payments for loans | $ 3,000 | ||||
Shareholder loan receivable | $ 6,000 |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 |
Payables and Accruals [Abstract] | |||
Voyage expenses | $ 33,984 | $ 15,934 | |
Ship operating expenses | 27,248 | 7,879 | |
Administrative expenses | 4,540 | 2,365 | |
Interest expense | 9,132 | 9,914 | |
Taxes | 709 | 727 | |
Other | 132 | 212 | |
Accrued expenses | $ 75,745 | $ 37,031 | $ 38,208 |
OTHER CURRENT LIABILITIES (Deta
OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Deferred charter revenue | $ 4,975 | $ 304 |
Other | 2,570 | 3,600 |
Other current liabilities | $ 7,545 | $ 3,904 |
DEBT (Details)
DEBT (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2017 | Feb. 28, 2017 | Dec. 31, 2016 | Aug. 31, 2016 | Jul. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | |||||||||||
Total debt | $ 1,701,341,000 | $ 1,740,552,000 | |||||||||
Total U.S. dollar denominated floating rate debt | 1,553,905,000 | 1,524,995,000 | |||||||||
Total U.S. dollar denominated fixed rate debt | 120,000,000 | 186,000,000 | |||||||||
Credit facilities | 23,000 | 32,000 | |||||||||
Secured borrowings | 7,329,000 | 7,631,000 | |||||||||
Promissory notes | 20,084,000 | 21,894,000 | |||||||||
Short-term debt and current portion of long-term debt | 438,962,000 | 120,479,000 | |||||||||
Deferred charges | 7,962,000 | 9,780,000 | |||||||||
Long-term portion of debt | 1,254,417,000 | 1,610,293,000 | |||||||||
Maturities of Long-term Debt [Abstract] | |||||||||||
2020 | 438,962,000 | ||||||||||
2021 | 558,928,000 | ||||||||||
2022 | 57,808,000 | ||||||||||
2023 | 219,290,000 | ||||||||||
2024 | 125,077,000 | ||||||||||
Thereafter | 301,276,000 | ||||||||||
Total debt | 1,701,341,000 | 1,740,552,000 | |||||||||
Assets pledged [Abstract] | |||||||||||
Vessels, net | 2,579,905,000 | 2,476,755,000 | |||||||||
Deferred Charges [Abstract] | |||||||||||
Debt arrangement fees | 16,831,000 | 17,490,000 | |||||||||
Accumulated amortization | (8,869,000) | (7,710,000) | |||||||||
Deferred charges | 7,962,000 | 9,780,000 | |||||||||
Vessels | |||||||||||
Assets pledged [Abstract] | |||||||||||
Vessels, net | 2,578,135,000 | 2,475,649,000 | |||||||||
$500.1 million term loan facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | 500,100,000 | ||||||||||
$60.6 million term loan facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | 60,600,000 | ||||||||||
$466.5 million term loan facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | 466,500,000 | ||||||||||
$109.2 million term loan facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | 109,200,000 | ||||||||||
$328.4 million term loan facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | 328,400,000 | ||||||||||
$321.6 million term loan facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | 321,600,000 | $ 321,600,000 | |||||||||
$110.5 million term loan facility (ING) | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | 110,500,000 | $ 110,500,000 | |||||||||
$110.5 million term loan facility (Credit Suisse) | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | 110,500,000 | ||||||||||
$110.5 million term loan facility (Credit Suisse 2) | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | 110,500,000 | 110,500,000 | |||||||||
$275.0 million revolving credit facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | 270,000,000 | ||||||||||
Loans Payable | $500.1 million term loan facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | $ 500,100,000 | ||||||||||
Loans Payable | $60.6 million term loan facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | $ 60,600,000 | ||||||||||
Loans Payable | $466.5 million term loan facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | $ 466,500,000 | ||||||||||
Loans Payable | $109.2 million term loan facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | $ 109,200,000 | ||||||||||
Loans Payable | $328.4 million term loan facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | $ 328,400,000 | ||||||||||
Loans Payable | $321.6 million term loan facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | $ 321,600,000 | ||||||||||
Loans Payable | $110.5 million term loan facility (Credit Suisse 2) | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | $ 110,500,000 | ||||||||||
Loans Payable | $275.0 million revolving credit facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | $ 275,000,000 | ||||||||||
Total debt | 120,000,000 | 186,000,000 | |||||||||
Maturities of Long-term Debt [Abstract] | |||||||||||
Total debt | 120,000,000 | 186,000,000 | |||||||||
US Dollar denominated floating rate debt | $466.5 million term loan facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt | $ 466,500,000 | ||||||||||
Maturities of Long-term Debt [Abstract] | |||||||||||
Total debt | $ 466,500,000 | ||||||||||
US Dollar denominated floating rate debt | Loans Payable | $500.1 million term loan facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt | 347,689,000 | 385,792,000 | |||||||||
Maturities of Long-term Debt [Abstract] | |||||||||||
Total debt | 347,689,000 | 385,792,000 | |||||||||
US Dollar denominated floating rate debt | Loans Payable | $60.6 million term loan facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt | 44,126,000 | 47,594,000 | |||||||||
Maturities of Long-term Debt [Abstract] | |||||||||||
Total debt | 44,126,000 | 47,594,000 | |||||||||
US Dollar denominated floating rate debt | Loans Payable | $466.5 million term loan facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt | 264,752,000 | 281,273,000 | |||||||||
Maturities of Long-term Debt [Abstract] | |||||||||||
Total debt | 264,752,000 | 281,273,000 | |||||||||
US Dollar denominated floating rate debt | Loans Payable | $109.2 million term loan facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt | 89,929,000 | 96,353,000 | |||||||||
Maturities of Long-term Debt [Abstract] | |||||||||||
Total debt | 89,929,000 | 96,353,000 | |||||||||
US Dollar denominated floating rate debt | Loans Payable | $328.4 million term loan facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt | 230,805,000 | 246,079,000 | |||||||||
Maturities of Long-term Debt [Abstract] | |||||||||||
Total debt | 230,805,000 | 246,079,000 | |||||||||
US Dollar denominated floating rate debt | Loans Payable | $321.6 million term loan facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt | 241,127,000 | 260,108,000 | |||||||||
Maturities of Long-term Debt [Abstract] | |||||||||||
Total debt | 241,127,000 | 260,108,000 | |||||||||
US Dollar denominated floating rate debt | Loans Payable | $110.5 million term loan facility (ING) | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt | 106,189,000 | 51,413,000 | |||||||||
Maturities of Long-term Debt [Abstract] | |||||||||||
Total debt | 106,189,000 | 51,413,000 | |||||||||
US Dollar denominated floating rate debt | Loans Payable | $110.5 million term loan facility (Credit Suisse) | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt | 112,190,000 | 103,747,000 | |||||||||
Maturities of Long-term Debt [Abstract] | |||||||||||
Total debt | 112,190,000 | 103,747,000 | |||||||||
US Dollar denominated floating rate debt | Loans Payable | $110.5 million term loan facility (Credit Suisse 2) | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt | 117,098,000 | 52,636,000 | |||||||||
Maturities of Long-term Debt [Abstract] | |||||||||||
Total debt | $ 117,098,000 | $ 52,636,000 |
DEBT - Additional Information (
DEBT - Additional Information (Details) shares in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Nov. 30, 2019USD ($) | Oct. 31, 2019 | Jun. 30, 2017USD ($)very_large_crude_carrier | Feb. 28, 2017USD ($) | Dec. 31, 2016USD ($) | Aug. 31, 2016USD ($) | Jul. 31, 2016USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Mar. 31, 2015USD ($)vessel | Dec. 31, 2014USD ($)tranch | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($)shares | Dec. 31, 2019USD ($)suezmax_tankervery_large_crude_carriershares | Dec. 31, 2018USD ($)very_large_crude_carrierlarge_range_2_tankershares | Dec. 31, 2017vessel | Dec. 31, 2017suezmax_tanker | Dec. 31, 2017very_large_crude_carrier | Dec. 31, 2017USD ($) | Dec. 31, 2017large_range_2_tanker | Dec. 31, 2016USD ($)suezmax_tanker | Dec. 31, 2016USD ($) | Dec. 31, 2016USD ($)large_range_2_tanker | Dec. 31, 2015USD ($)large_range_2_tanker | |
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Number of second hand vessels | vessel | 2 | ||||||||||||||||||||||||
Number of VLCC vessels | very_large_crude_carrier | 6 | ||||||||||||||||||||||||
Number of vessels owned, Suezmax tankers | suezmax_tanker | 6 | ||||||||||||||||||||||||
Marketable securities pledged to creditors | $ 8,392,000 | $ 7,323,000 | $ 8,392,000 | ||||||||||||||||||||||
Cash required to be maintained for covenant compliance | 37,900,000 | 38,300,000 | 37,900,000 | ||||||||||||||||||||||
Secured borrowings | $ 7,631,000 | $ 7,329,000 | $ 7,631,000 | ||||||||||||||||||||||
Debt instrument, covenant compliance, cash required to be maintained, percentage | 50.00% | 50.00% | 50.00% | ||||||||||||||||||||||
loan arrangement fees | $ 700,000 | $ 0 | |||||||||||||||||||||||
Payment Of Guarantee Fee | 3,400,000 | ||||||||||||||||||||||||
Guarantee Fee Recognized As Interest Expense | 2,100,000 | ||||||||||||||||||||||||
Prepaid Guarantee Fee | 1,300,000 | ||||||||||||||||||||||||
LR2 Tanker | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Number of tankers delivered | large_range_2_tanker | 6 | 3 | |||||||||||||||||||||||
$466.5 million term loan facility | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Principal amount | 466,500,000 | ||||||||||||||||||||||||
$60.6 million term loan facility | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Principal amount | 60,600,000 | ||||||||||||||||||||||||
$500.1 million term loan facility | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Principal amount | 500,100,000 | ||||||||||||||||||||||||
$275.0 million revolving credit facility | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Principal amount | 270,000,000 | ||||||||||||||||||||||||
Debt Instrument, Increase (Decrease), Net | 66,000,000 | ||||||||||||||||||||||||
$109.2 million term loan facility | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Principal amount | 109,200,000 | ||||||||||||||||||||||||
Debt Instrument, Increase (Decrease), Net | $ (54,600,000) | ||||||||||||||||||||||||
Number of newbuild vessels financed by term loan facility | vessel | 1 | ||||||||||||||||||||||||
$328.4 million term loan facility | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Principal amount | 328,400,000 | ||||||||||||||||||||||||
Debt Instrument, Increase (Decrease), Net | (165,900,000) | ||||||||||||||||||||||||
Number of newbuild vessels financed by term loan facility | 2 | 3 | |||||||||||||||||||||||
$110.5 million term loan facility (Credit Suisse) | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Principal amount | 110,500,000 | ||||||||||||||||||||||||
Number of newbuild vessels financed by term loan facility | very_large_crude_carrier | 1 | 1 | |||||||||||||||||||||||
$321.6 million term loan facility | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Principal amount | $ 321,600,000 | 321,600,000 | |||||||||||||||||||||||
Number of newbuild vessels financed by term loan facility | large_range_2_tanker | 1 | ||||||||||||||||||||||||
Number of vessels pledged as security on long-term debt instrument | 4 | 3 | |||||||||||||||||||||||
$110.5 million term loan facility (Credit Suisse 2) | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Principal amount | $ 110,500,000 | $ 110,500,000 | |||||||||||||||||||||||
Number of newbuild vessels financed by term loan facility | very_large_crude_carrier | 1 | 1 | |||||||||||||||||||||||
Debt Instrument, Increase In Face Amount | $ 15,000,000 | ||||||||||||||||||||||||
$110.5 million term loan facility (ING) | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Principal amount | $ 110,500,000 | $ 110,500,000 | |||||||||||||||||||||||
Number of newbuild vessels financed by term loan facility | very_large_crude_carrier | 1 | 1 | |||||||||||||||||||||||
Debt Instrument, Increase In Face Amount | $ 4,100,000 | ||||||||||||||||||||||||
Term loan facility $42.9 million CS | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Principal amount | $ 42,900,000 | ||||||||||||||||||||||||
Loans Payable | $466.5 million term loan facility | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Principal amount | $ 466,500,000 | ||||||||||||||||||||||||
Number of tranches | tranch | 10 | ||||||||||||||||||||||||
Maximum borrowing capacity of each tranche | $ 33,000,000 | ||||||||||||||||||||||||
Debt Instrument, Loan Margin, Percentage | 1.90% | 2.05% | |||||||||||||||||||||||
Commitment fee percentage | 0.82% | ||||||||||||||||||||||||
Debt Instrument, Increase (Decrease), Net | $ (192,400,000) | $ (99,000,000) | |||||||||||||||||||||||
Loan repayments | 126,400,000 | 13,100,000 | |||||||||||||||||||||||
Loans Payable | $466.5 million term loan facility | MR tanker | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Periodic quarterly payment | $ 400,000 | ||||||||||||||||||||||||
Loans Payable | $466.5 million term loan facility | LR2 Tanker | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Periodic quarterly payment | 400,000 | ||||||||||||||||||||||||
Loans Payable | Term loan facility $136.5 million | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Principal amount | $ 136,500,000 | ||||||||||||||||||||||||
Loans Payable | $60.6 million term loan facility | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Principal amount | $ 60,600,000 | ||||||||||||||||||||||||
Periodic quarterly payment | $ 900,000 | ||||||||||||||||||||||||
Term of debt | 5 years | ||||||||||||||||||||||||
Loans Payable | $60.6 million term loan facility | London Interbank Offered Rate (LIBOR) | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Basis spread on variable interest rate | 1.80% | ||||||||||||||||||||||||
Loans Payable | $500.1 million term loan facility | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Principal amount | $ 500,100,000 | $ 500,100,000 | |||||||||||||||||||||||
Periodic quarterly payment | $ 9,500,000 | ||||||||||||||||||||||||
Loans Payable | $500.1 million term loan facility | London Interbank Offered Rate (LIBOR) | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Basis spread on variable interest rate | 1.90% | ||||||||||||||||||||||||
Loans Payable | $275.0 million revolving credit facility | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Principal amount | $ 275,000,000 | ||||||||||||||||||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 6.25% | ||||||||||||||||||||||||
loan availability period | 6 months | 18 months | |||||||||||||||||||||||
loan repayable period | 18 months | ||||||||||||||||||||||||
Debt Instrument, Unused Borrowing Capacity, Amount | 155,000,000 | ||||||||||||||||||||||||
Loans Payable | $109.2 million term loan facility | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Principal amount | $ 109,200,000 | ||||||||||||||||||||||||
Term of debt | 17 years | ||||||||||||||||||||||||
Loans Payable | $109.2 million term loan facility | London Interbank Offered Rate (LIBOR) | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Basis spread on variable interest rate | 1.90% | ||||||||||||||||||||||||
Loans Payable | $328.4 million term loan facility | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Principal amount | $ 328,400,000 | ||||||||||||||||||||||||
Debt Instrument, Increase (Decrease), Net | (109,000,000) | ||||||||||||||||||||||||
Term of debt | 18 years | ||||||||||||||||||||||||
Number of part-financed vessels - delivered | 2 | 1 | |||||||||||||||||||||||
Loans Payable | $110.5 million term loan facility (Credit Suisse) | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Debt Instrument, Increase (Decrease), Net | $ (54,900,000) | (54,900,000) | |||||||||||||||||||||||
Debt Instrument, Increase In Face Amount | 15,000,000 | ||||||||||||||||||||||||
Loans Payable | $321.6 million term loan facility | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Principal amount | $ 321,600,000 | ||||||||||||||||||||||||
Debt Instrument, Increase (Decrease), Net | (32,000,000) | $ (252,700,000) | |||||||||||||||||||||||
Term of debt | 15 years | ||||||||||||||||||||||||
Loans Payable | $110.5 million term loan facility (Credit Suisse 2) | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Principal amount | $ 110,500,000 | ||||||||||||||||||||||||
Debt Instrument, Increase (Decrease), Net | (55,300,000) | $ (54,900,000) | |||||||||||||||||||||||
Term of debt | 18 years | ||||||||||||||||||||||||
Loans Payable | $110.5 million term loan facility (Credit Suisse 2) | London Interbank Offered Rate (LIBOR) | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Basis spread on variable interest rate | 1.90% | ||||||||||||||||||||||||
Loans Payable | $110.5 million term loan facility (ING) | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Debt Instrument, Increase (Decrease), Net | $ (55,300,000) | (55,300,000) | |||||||||||||||||||||||
Term of debt | 18 years | ||||||||||||||||||||||||
Loans Payable | $110.5 million term loan facility (ING) | London Interbank Offered Rate (LIBOR) | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Basis spread on variable interest rate | 1.90% | ||||||||||||||||||||||||
Loans Payable | Term loan facility $110.5 million | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Principal amount | $ 110,500,000 | $ 110,500,000 | $ 110,500,000 | $ 110,500,000 | |||||||||||||||||||||
Term of debt | 18 years | ||||||||||||||||||||||||
Loans Payable | Term loan facility $110.5 million | London Interbank Offered Rate (LIBOR) | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Basis spread on variable interest rate | 1.90% | ||||||||||||||||||||||||
Loans Payable | Term loan facility $42.9 million CS | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Term of debt | 5 years | ||||||||||||||||||||||||
Interest rate amortization profile | 18 years | ||||||||||||||||||||||||
Loans Payable | Term loan facility $42.9 million CS | London Interbank Offered Rate (LIBOR) | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Basis spread on variable interest rate | 1.90% | ||||||||||||||||||||||||
Loans Payable On Increased Borrowing Base | $110.5 million term loan facility (ING) | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Debt Instrument, Increase (Decrease), Net | $ (4,100,000) | ||||||||||||||||||||||||
Golden Ocean | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Number of shares disposed (in shares) | shares | 1.3 | 1.3 | 1.3 | ||||||||||||||||||||||
Proceeds from sale of marketable securities | $ 7,700,000 | $ 7,700,000 | $ 7,600,000 | $ 7,700,000 | |||||||||||||||||||||
Avance Gas | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Percentage of total repurchase price posted as collateral | 20.00% | 20.00% | |||||||||||||||||||||||
Marketable securities pledged to creditors | $ 442,384 | $ 442,384 | |||||||||||||||||||||||
Forecast | Golden Ocean | |||||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||
Proceeds from sale of marketable securities | $ 7,200,000 |
SHARE CAPITAL (Details)
SHARE CAPITAL (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Aug. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jul. 24, 2018 | Dec. 31, 2016 | |
Class of Stock [Line Items] | ||||||
Shares issued under ATM program (in shares) | 11,037,273 | 11,868 | 0 | |||
Net proceeds from issuance of shares | $ 98,415,000 | $ 85,000 | $ 0 | |||
Share issued as consideration for Trafigura acquisition (in shares) | 16,035,856 | 16,035,856 | 0 | 0 | ||
Shares issued for purchase of assets, grant date fair value (in dollars per share) | $ 7.92 | $ 7.92 | ||||
Share capital, shares outstanding (in shares) | 196,894,321 | 169,821,192 | 169,809,324 | 169,809,324 | ||
At-The-Market Offering | ||||||
Class of Stock [Line Items] | ||||||
Equity distribution agreement, maximum value of shares authorized | $ 100,000,000 | |||||
Shares issued under ATM program (in shares) | 11,037,273 |
SHARE OPTIONS (Details)
SHARE OPTIONS (Details) - USD ($) $ / shares in Units, shares in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Nov. 30, 2018 | Jul. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||||||
Share price (in dollars per share) | $ 4.59 | ||||||
Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award expiration period | 33 months | 5 years | |||||
Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted share options (in shares) | 180 | 1,170 | |||||
Weighted average exercise price, Exercisable Options (in dollars per share) | $ 7.40 | $ 8 | $ 7.30 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||||||
Risk free interest rate (in hundredths) | 2.78% | 0.69% | |||||
Expected life | 1 year 7 months | 3 years 6 months | |||||
Expected volatility (in hundredths) | 38.24% | 79.80% | |||||
Expected dividend yield (in hundredths) | 0.00% | 0.00% | 0.00% | ||||
Risk free interest rate range | 3 years | ||||||
Share price (in dollars per share) | $ 12.86 | ||||||
Number of shares vested (in shares) | 1,350 | ||||||
Number of shares expired or forfeited (in shares) | 33 | ||||||
Unrecognized stock compensation expense | $ 0 | $ 300,000 | |||||
Compensation expense recognized | $ 400,000 | $ 1,000,000 | $ 2,100,000 | ||||
Weighted average grant date fair value of options granted (in dollars per share) | $ 1.53 | $ 4.06 | |||||
Stock Options Granted 2018 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||||||
Unrecognized stock compensation expense | $ 200,000 | ||||||
Share-based Compensation Award, Tranche One | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 1 year | ||||||
Share-based Compensation Award, Tranche Two | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 2 years | ||||||
Share-based Compensation Award, Tranche Three | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years |
FINANCIAL INSTRUMENTS - Narrati
FINANCIAL INSTRUMENTS - Narrative (Details) | 1 Months Ended | 12 Months Ended | |||||||||||
Feb. 27, 2013USD ($)instrument | Dec. 31, 2019USD ($)suezmax_tanker | Dec. 31, 2018USD ($)very_large_crude_carrier | Dec. 31, 2017USD ($)very_large_crude_carrier | Dec. 31, 2019very_large_crude_carrier | Dec. 31, 2019USD ($) | Dec. 31, 2019 | Dec. 31, 2019large_range_2_tanker | Dec. 31, 2019types_of_risk | Dec. 31, 2017large_range_2_tanker | Dec. 31, 2016USD ($)MR_product_tanker | Feb. 29, 2016USD ($) | Feb. 01, 2013MR_product_tanker | |
Derivative [Line Items] | |||||||||||||
Number of newbuild vessels | 1 | 2 | 4 | 1 | 4 | 1 | 6 | 12 | |||||
Debt | $ 1,740,552,000 | $ 1,701,341,000 | |||||||||||
Mark to market loss (gain) on derivatives | $ 11,757,000 | (3,190,000) | $ (93,000) | ||||||||||
Number of risks related to subsidiaries' reporting in foreign currency | types_of_risk | 2 | ||||||||||||
Interest Rate Swap [Member] | |||||||||||||
Derivative [Line Items] | |||||||||||||
Number of derivatives entered into | instrument | 6 | ||||||||||||
Principal amount of debt used in interest rate swaps | $ 260,000,000 | ||||||||||||
Derivative, notional amount | 306,182,000 | ||||||||||||
Derivative asset | 7,600,000 | 100,000 | |||||||||||
Derivative liability | 0 | 4,300,000 | |||||||||||
Mark to market loss (gain) on derivatives | $ 10,100,000 | $ (4,300,000) | $ 800,000 | ||||||||||
Interest rate swap 1 | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivative, notional amount | 12,892,000 | ||||||||||||
Derivative, fixed interest rate | 1.4025% | ||||||||||||
Interest rate swap 2 | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivative, notional amount | 38,546,000 | ||||||||||||
Derivative, fixed interest rate | 1.5035% | ||||||||||||
Interest rate swap 3 | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivative, notional amount | 65,645,000 | ||||||||||||
Derivative, fixed interest rate | 1.6015% | ||||||||||||
Interest rate swap 4 | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivative, notional amount | 12,690,000 | ||||||||||||
Derivative, fixed interest rate | 1.6998% | ||||||||||||
Interest rate swap 5 | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivative, notional amount | 13,033,000 | ||||||||||||
Derivative, fixed interest rate | 1.7995% | ||||||||||||
Interest rate swap 6 | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivative, notional amount | 13,376,000 | ||||||||||||
Derivative, fixed interest rate | 1.907% | ||||||||||||
Interest rate swap 7 | |||||||||||||
Derivative [Line Items] | |||||||||||||
Derivative, notional amount | $ 150,000,000 | $ 150,000,000 | |||||||||||
Derivative, fixed interest rate | 2.197% | ||||||||||||
Term Loan Facility, $466.5 Million [Member] | US Dollar denominated floating rate debt | |||||||||||||
Derivative [Line Items] | |||||||||||||
Debt | $ 466,500,000 |
FINANCIAL INSTRUMENTS - Fair Va
FINANCIAL INSTRUMENTS - Fair Values (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total U.S. dollar denominated floating rate debt | $ 1,553,905 | $ 1,524,995 |
Total U.S. dollar denominated fixed rate debt | 120,000 | 186,000 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 174,223 | 66,484 |
Restricted cash | 3,153 | 1,420 |
Total U.S. dollar denominated floating rate debt | 1,553,928 | 1,525,028 |
Total U.S. dollar denominated fixed rate debt | 146,225 | 212,696 |
Level 1 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 174,223 | 66,484 |
Restricted cash | 3,153 | 1,420 |
Total U.S. dollar denominated floating rate debt | 0 | 0 |
Total U.S. dollar denominated fixed rate debt | 0 | 0 |
Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Total U.S. dollar denominated floating rate debt | 1,553,928 | 1,525,028 |
Total U.S. dollar denominated fixed rate debt | 7,329 | 7,631 |
Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Total U.S. dollar denominated floating rate debt | 0 | 0 |
Total U.S. dollar denominated fixed rate debt | 138,896 | 205,065 |
Carrying (Reported) Amount, Fair Value Disclosure | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 174,223 | 66,484 |
Restricted cash | 3,153 | 1,420 |
Total U.S. dollar denominated floating rate debt | 1,553,928 | 1,525,028 |
Total U.S. dollar denominated fixed rate debt | 147,413 | 215,524 |
Estimate of Fair Value, Fair Value Disclosure | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 174,223 | 66,484 |
Restricted cash | 3,153 | 1,420 |
Total U.S. dollar denominated floating rate debt | 1,553,928 | 1,525,028 |
Total U.S. dollar denominated fixed rate debt | $ 146,225 | $ 212,696 |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional Information (Details) | 1 Months Ended | 12 Months Ended | |||||||||
Oct. 31, 2019 | Jan. 31, 2019USD ($) | Jul. 31, 2018USD ($)vessel | Dec. 31, 2019USD ($)vessel | Dec. 31, 2018USD ($)very_large_crude_carrier | Dec. 31, 2017USD ($)suezmax_tanker | Dec. 31, 2017USD ($)very_large_crude_carrier | Dec. 31, 2017USD ($) | Aug. 31, 2019USD ($)vessel | Jun. 30, 2016USD ($) | Jan. 01, 2014vessel | |
Related Party Transaction [Line Items] | |||||||||||
Number of leased assets | vessel | 5 | ||||||||||
Promissory notes | $ 20,084,000 | $ 21,894,000 | |||||||||
Contingent rental income | (2,607,000) | (19,738,000) | $ (26,148,000) | ||||||||
Lease termination payment | (22,391,000) | (19,006,000) | |||||||||
Profit share expense | 4,800,000 | $ 1,500,000 | 5,600,000 | ||||||||
Payment Of Guarantee Fee | 3,400,000 | ||||||||||
$275.0 million revolving credit facility | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Principal amount | 270,000,000 | ||||||||||
Debt Instrument, Increase (Decrease), Net | $ (66,000,000) | ||||||||||
SFL | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Number of leased assets | vessel | 3 | ||||||||||
Number of vessels whose lease was terminated | 3 | 6 | 2 | 2 | |||||||
Interest Expense, Related Party | $ 6,940,000 | $ 16,400,000 | 25,980,000 | ||||||||
Contingent rental income | (2,607,000) | (19,738,000) | (26,148,000) | ||||||||
Related party transactions, Charterhire Paid Including Principal and Interest | 11,745,000 | 47,324,000 | 75,055,000 | ||||||||
Lease termination payment | 0 | (22,391,000) | (19,006,000) | ||||||||
Contingent rental income, net | 2,200,000 | 19,700,000 | 26,100,000 | ||||||||
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments | 87,930,000 | 99,784,000 | $ 299,016,000 | $ 299,016,000 | 299,016,000 | ||||||
Profit share expense | 4,800,000 | 1,500,000 | 5,600,000 | ||||||||
Number of vessels from Frontline 2012 involved in pooling arrangement | vessel | 2 | ||||||||||
Number of Ship Finance vessels involved in pooling arrangement | vessel | 2 | ||||||||||
Pool earnings allocated on a net basis | 1,500,000 | 200,000 | $ 2,100,000 | ||||||||
SFL | SFL Promissory Notes | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Promissory notes | 20,100,000 | 21,900,000 | |||||||||
Interest Expense, Related Party | 1,600,000 | 900,000 | |||||||||
Feen Marine Scrubbers Inc. | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Due from Related Parties | $ 6,000,000 | ||||||||||
Increase (Decrease) in Notes Receivable, Related Parties | $ 3,000,000 | ||||||||||
Related Party Transaction, Purchases from Related Party | 26,000,000 | ||||||||||
Repayment of related party loan notes | 9,100,000 | 8,200,000 | |||||||||
Other Affiliates Of Hemen | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Guarantee From Related Party | $ 547,000,000 | ||||||||||
Payment Of Guarantee Fee | 3,400,000 | ||||||||||
Other Affiliates Of Hemen | $275.0 million revolving credit facility | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Interest Expense, Related Party | 8,900,000 | $ 9,300,000 | |||||||||
Principal amount | $ 275,000,000 | ||||||||||
Debt Instrument, Increase (Decrease), Net | 66,000,000 | ||||||||||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 155,000,000 | ||||||||||
Loan facility extended period | 6 months |
RELATED PARTY TRANSACTIONS - Su
RELATED PARTY TRANSACTIONS - Summary of Net Amounts Earned (Incurred) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Seatankers Management Co. Ltd | |||
Related Party Transaction [Line Items] | |||
Net amounts earned (incurred) from related parties excluding Ship Finance lease related balances | $ 18,878 | $ 7,152 | $ 3,420 |
SFL | |||
Related Party Transaction [Line Items] | |||
Net amounts earned (incurred) from related parties excluding Ship Finance lease related balances | 1,591 | 2,001 | 3,473 |
Golden Ocean | |||
Related Party Transaction [Line Items] | |||
Net amounts earned (incurred) from related parties excluding Ship Finance lease related balances | 6,851 | 7,138 | 6,671 |
Seatankers Management Norway AS | |||
Related Party Transaction [Line Items] | |||
Net amounts earned (incurred) from related parties excluding Ship Finance lease related balances | (705) | (735) | (767) |
Arcadia Petroleum Limited | |||
Related Party Transaction [Line Items] | |||
Net amounts earned (incurred) from related parties excluding Ship Finance lease related balances | 3,197 | 0 | 0 |
Seadrill Limited | |||
Related Party Transaction [Line Items] | |||
Net amounts earned (incurred) from related parties excluding Ship Finance lease related balances | 367 | 279 | 470 |
Archer Limited | |||
Related Party Transaction [Line Items] | |||
Net amounts earned (incurred) from related parties excluding Ship Finance lease related balances | 418 | 317 | 238 |
Flex LNG Ltd | |||
Related Party Transaction [Line Items] | |||
Net amounts earned (incurred) from related parties excluding Ship Finance lease related balances | 1,195 | 1,788 | 4,432 |
North Atlantic Drilling Ltd | |||
Related Party Transaction [Line Items] | |||
Net amounts earned (incurred) from related parties excluding Ship Finance lease related balances | 0 | 29 | 37 |
Avance Gas | |||
Related Party Transaction [Line Items] | |||
Net amounts earned (incurred) from related parties excluding Ship Finance lease related balances | 518 | 0 | 0 |
Other related parties | |||
Related Party Transaction [Line Items] | |||
Net amounts earned (incurred) from related parties excluding Ship Finance lease related balances | $ 197 | $ 101 | $ 67 |
RELATED PARTY TRANSACTIONS - _2
RELATED PARTY TRANSACTIONS - Summary of Related Party Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | ||
Related party receivables | $ 15,581 | $ 7,895 |
Related party payables | 20,186 | 18,738 |
SFL | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 4,982 | 1,653 |
Related party payables | 9,193 | 8,886 |
Seatankers Management Co. Ltd | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 5,490 | 2,657 |
Related party payables | 4,037 | 3,236 |
Archer Limited | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 94 | 173 |
Golden Ocean | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 3,593 | 2,370 |
Related party payables | 6,241 | 5,558 |
Seadrill Limited | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 554 | 538 |
Arcadia Petroleum Limited | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 0 | 0 |
Flex LNG Ltd | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 391 | 210 |
Related party payables | 636 | 1,058 |
North Atlantic Drilling Ltd | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 25 | 116 |
Avance Gas | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 240 | |
Related party payables | 79 | 0 |
Other related parties | ||
Related Party Transaction [Line Items] | ||
Related party receivables | $ 212 | $ 178 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | 12 Months Ended | |||||||||||
Dec. 31, 2019USD ($)vessel | Dec. 31, 2015lease | Dec. 31, 2019suezmax_tanker | Dec. 31, 2019very_large_crude_carrier | Dec. 31, 2019USD ($) | Dec. 31, 2019large_range_2_tanker | Aug. 31, 2019vesselsuezmax_tanker | Dec. 31, 2018USD ($)very_large_crude_carrier | Dec. 31, 2017very_large_crude_carrier | Dec. 31, 2017large_range_2_tanker | Dec. 31, 2016MR_product_tanker | Feb. 01, 2013MR_product_tanker | |
Other Commitments [Line Items] | ||||||||||||
Number of newbuild vessels | 1 | 1 | 4 | 2 | 4 | 1 | 6 | 12 | ||||
Installments and newbuilding supervision fees paid | $ 45,000 | |||||||||||
Newbuilding installment Commitments | $ 302,000 | |||||||||||
Newbuilding installment commitments due in 2020 | $ 159,600 | |||||||||||
Newbuilding installment commitments due in 2021 | 109,100 | |||||||||||
Newbuilding installment commitments due in 2022 | 33,300 | |||||||||||
Number of leases assigned to third parties and related parties | lease | 2 | |||||||||||
Outstanding lease payments, guaranteed by the Company | 5,400 | $ 6,300 | ||||||||||
Number of vessels owned | vessel | 11 | |||||||||||
EGCS commitments | 8,300 | |||||||||||
Number of vessels with BWTS commitments | vessel | 8 | |||||||||||
BWTS commitments | 2,900 | |||||||||||
Number of assets acquired | suezmax_tanker | 10 | |||||||||||
Cash consideration due upon closing of SPA | $ 538,200 | |||||||||||
Finance lease liability | 359,910 | |||||||||||
Number of leased assets | vessel | 5 | |||||||||||
Finance Lease Liability | ||||||||||||
Other Commitments [Line Items] | ||||||||||||
Cash consideration due upon closing of SPA | $ 269,200 | |||||||||||
Assets Under Sale and Purchase Agreement | Trafigura | Trafigura Vessels Not Chartered Out | ||||||||||||
Other Commitments [Line Items] | ||||||||||||
Finance lease liability | $ 272,000 | |||||||||||
Number of leased assets | suezmax_tanker | 5 | 5 |
SUPPLEMENTAL INFORMATION (Detai
SUPPLEMENTAL INFORMATION (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Aug. 31, 2019$ / sharesshares | Dec. 31, 2019USD ($)suezmax_tanker$ / sharesshares | Dec. 31, 2018USD ($)vesselvery_large_crude_carriershares | Dec. 31, 2017vessel | Dec. 31, 2017suezmax_tanker | Dec. 31, 2017very_large_crude_carrier | Dec. 31, 2017shares | Dec. 31, 2017USD ($) | |
Other Significant Noncash Transactions [Line Items] | ||||||||
Number of vessels with terminated leases | 6 | 2 | 2 | |||||
Shares issued for purchase of vessels (in shares) | shares | 16,035,856 | 16,035,856 | 0 | 0 | ||||
Number of assets acquired | suezmax_tanker | 10 | |||||||
Shares issued for purchase of assets, grant date fair value (in dollars per share) | $ / shares | $ 7.92 | $ 7.92 | ||||||
Stock issued for purchase of assets, total grant date fair value | $ 127 | |||||||
Front Scilla, Front Brabant, Front Ardenne | SFL | ||||||||
Other Significant Noncash Transactions [Line Items] | ||||||||
Number of vessels with terminated leases | vessel | 3 | |||||||
Reduction in capital lease obligation | $ 53.2 | |||||||
Front Circassia, Front Page, Front Stratus, Front Serenade, Front Ariake, Front Falcon | SFL | ||||||||
Other Significant Noncash Transactions [Line Items] | ||||||||
Number of vessels with terminated leases | vessel | 6 | |||||||
Reduction in capital lease obligation | $ 167.9 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | Mar. 16, 2020USD ($)suezmax_tanker | Jan. 23, 2020USD ($) | Feb. 29, 2020USD ($)very_large_crude_carrier$ / shares | Jan. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019$ / sharesshares | Dec. 31, 2018$ / sharesshares | Dec. 31, 2017$ / sharesshares | Jan. 31, 2019USD ($) | Jun. 30, 2018 |
Subsequent Event [Line Items] | |||||||||
Ownership percentage | 28.90% | 20.00% | |||||||
Shares issued under ATM program (in shares) | shares | 11,037,273 | 11,868 | 0 | ||||||
Share capital, shares issued (in shares) | shares | 196,894,321 | 169,821,192 | |||||||
Shareholder loan receivable | $ 6,000,000 | ||||||||
Cash dividends per share declared (in dollars per share) | $ / shares | $ 0.1 | $ 0 | $ 0.3 | ||||||
Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Payments to acquire interest in affiliates | $ 800,000 | ||||||||
Ownership percentage | 17.34% | ||||||||
Shares issued under ATM program (in shares) | shares | 798,000 | ||||||||
Shares issued, price per share (in dollars per share) | $ / shares | $ 7.30 | ||||||||
Common stock, value | $ 197,692,321 | ||||||||
Share capital, shares issued (in shares) | shares | 197,692,321 | ||||||||
Joint venture, ownership interest | 15.00% | ||||||||
Shareholder loan receivable | $ 1,500,000 | ||||||||
Guarantee To Related Party | 50,000,000 | ||||||||
Cash dividends per share declared (in dollars per share) | $ / shares | $ 0.40 | ||||||||
Number Of Vessels Acquired Under SPA | suezmax_tanker | 10 | ||||||||
SFL | Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Contract termination receivable | $ 3,200,000 | ||||||||
Gain on contract termination | $ 7,400,000 | ||||||||
Number of vessels chartered in | very_large_crude_carrier | 2 | ||||||||
Repayments of notes payable | $ 20,000,000 | ||||||||
Term loan facility $62.5 million | Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Principal amount | $ 62,500,000 | ||||||||
Term of debt | 5 years | ||||||||
Interest rate amortization profile | 18 years | ||||||||
March 2020 Sale Leaseback Agreement | Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Term of debt | 7 years | ||||||||
Interest rate amortization profile | 17 years 9 months 18 days | ||||||||
Sale leaseback agreement, maximum amount | $ 544,000,000 | ||||||||
London Interbank Offered Rate (LIBOR) | Term loan facility $62.5 million | Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Basis spread on variable interest rate | 1.90% | ||||||||
London Interbank Offered Rate (LIBOR) | March 2020 Sale Leaseback Agreement | Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Basis spread on variable interest rate | 2.30% |