Frontline nets $1 billion in tanker profits

Frontline nets $1 billion in tanker profits    Oslo-based Frontline, the world’s largest tanker shipping company, said it raised its fourth-quarter net income to $498.2 million or 14 times the $36.7 million restated net profit it made in the same quarter of 2003, bringing annual earnings to $1 billion for 2004, up from a restated $409.4 million in 2003.
   Rates for tankers surged last year and Frontline also recorded a $99.5 million gain from the distribution of Golden Ocean shares and cash to Frontline shareholders. Golden Ocean, a newly formed dry bulk shipping company, was spun off from Frontline in the fourth quarter.
   Frontline’s operating income climbed to $471.7 million in the fourth quarter from $99.9 million. Revenue more than doubled to $656.3 million from $267.9 million.
   The Norwegian group also has a 20 percent profit share arrangement with Ship Finance for any earnings Frontline makes above the fixed charter rates. This profit share is determined on an annual basis and for 2004 totaled $114.9 million.
   The company has restated prior periods reported to reflect the treatment of the spin off of Golden Ocean as discontinued operations.
   Frontline forecast that the tanker shipping market will remain strong.