Frontline (FRO $3.15 -2.04) reported a third quarter loss of $0.57 per share, may not be comparable to the Capital IQ Consensus Estimate of ($0.69).
With regard to its outlook, the company states the negative operating cash flow, the funding of the newbuilding program and the additional decrease in values in the fourth quarter creates a challenging situation. If the current market does not improve, the company is likely to need additional funding in the first part of 2012 in order to meet the company's cash obligations.
There are also significant uncertainties regarding the company's ability to comply with certain of its financial covenants at the end of the fourth quarter 2011. If the current weak market continues and no solution can be found, the company states there are significant uncertainties linked to its sustainability in the present form. Co will not pay a dividend for the third quarter of 2011.






