Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | FRONTLINE LTD / |
Entity Central Index Key | 0000913290 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 169,821,192 |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Document Type | 20-F |
Amendment Flag | false |
Entity Emerging Growth Company | false |
Document Period End Date | Dec. 31, 2018 |
Entity Shell Company | false |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating revenues | |||
Voyage charter revenues | $ 690,901 | $ 518,156 | $ 502,284 |
Time charter revenues | 26,067 | 106,237 | 226,058 |
Finance lease interest income | 1,293 | 1,748 | 2,194 |
Other income | 24,005 | 20,185 | 23,770 |
Total operating revenues | 742,266 | 646,326 | 754,306 |
Other operating gains (losses) | (10,206) | (2,381) | 2,683 |
Operating expenses | |||
Voyage expenses and commission | 377,772 | 259,334 | 161,641 |
Contingent rental income | (19,738) | (26,148) | (18,621) |
Ship operating expenses | 130,623 | 135,728 | 119,515 |
Charter hire expenses | 21,244 | 19,705 | 67,846 |
Impairment loss on vessels and vessels held under capital lease | 0 | 164,187 | 61,692 |
Impairment loss on goodwill | 0 | 112,821 | 0 |
Provision for uncollectible receivable | 0 | 0 | 4,000 |
Administrative expenses | 37,294 | 37,603 | 37,026 |
Depreciation | 122,566 | 141,748 | 141,043 |
Total operating expenses | 669,761 | 844,978 | 574,142 |
Net operating income (loss) | 82,711 | (196,271) | 177,481 |
Other income (expenses) | |||
Interest income | 843 | 588 | 367 |
Interest expense | (93,275) | (69,815) | (56,687) |
Unrealized loss on marketable securities | (3,526) | 0 | 0 |
Gain on sale of shares | 1,026 | 1,061 | 0 |
Share of results of associated company | 246 | 0 | 0 |
Impairment loss on shares | 0 | 0 | (7,233) |
Foreign currency exchange (loss) gain | (869) | (55) | 9 |
Gain (loss) on derivatives | 4,256 | (753) | 3,718 |
Other non-operating items, net | 506 | 1,213 | 204 |
Net other (expenses) income | (90,793) | (67,761) | (59,622) |
Net (loss) income before income taxes and non-controlling interest | (8,082) | (264,032) | 117,859 |
Income tax expense | (316) | (290) | (345) |
Net (loss) income | (8,398) | (264,322) | 117,514 |
Net (income) loss attributable to non-controlling interest | (482) | (539) | (504) |
Net (loss) income attributable to the Company | $ (8,880) | $ (264,861) | $ 117,010 |
(Loss) earnings per share attributable to Frontline Ltd. stockholders: | |||
Basic and diluted earnings per share attributable to the Company (in dollars per share) | $ (0.05) | $ (1.56) | $ 0.75 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Comprehensive income | |||
Net (loss) income | $ (8,398) | $ (264,322) | $ 117,514 |
Unrealized gain (loss) from marketable securities | 0 | 1,901 | (5,425) |
(Gain) loss from marketable securities reclassified to Consolidated Statement of Operations | 0 | (571) | 7,233 |
Foreign currency translation gain (loss) | 893 | 158 | (686) |
Other comprehensive income (loss) | 893 | 1,488 | 1,122 |
Comprehensive (loss) income | (7,505) | (262,834) | 118,636 |
Comprehensive income (loss) attributable to non-controlling interest | (482) | (539) | (504) |
Comprehensive (loss) income attributable to the Company | (7,987) | (263,373) | 118,132 |
Comprehensive (loss) income | $ (7,505) | $ (262,834) | $ 118,636 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash and cash equivalents | $ 66,484 | $ 104,145 |
Restricted cash | 1,420 | 741 |
Marketable securities | 836 | 19,231 |
Marketable securities pledged to creditors | 8,392 | 10,272 |
Trade accounts receivable, net | 53,982 | 49,585 |
Related party receivables | 7,895 | 5,068 |
Other receivables | 17,068 | 17,294 |
Inventories | 68,765 | 61,715 |
Voyages in progress | 59,437 | 38,254 |
Prepaid expenses and accrued income | 7,804 | 6,170 |
Current portion of investment in finance lease | 10,803 | 9,126 |
Other current assets | 5,359 | 13 |
Total current assets | 308,245 | 321,614 |
Long-term assets | ||
Newbuildings | 52,254 | 79,602 |
Vessels and equipment, net | 2,476,755 | 2,342,130 |
Vessels and equipment under capital lease, net | 90,676 | 251,698 |
Investment in finance lease | 10,979 | 21,782 |
Goodwill | 112,452 | 112,452 |
Derivative instruments receivable | 7,641 | 4,450 |
Investment in associated company | 6,246 | 0 |
Other long-term assets | 12,593 | 0 |
Total assets | 3,077,841 | 3,133,728 |
Current liabilities | ||
Short-term debt and current portion of long-term debt | 120,479 | 113,078 |
Current portion of obligations under capital leases | 11,854 | 43,316 |
Related party payables | 18,738 | 8,921 |
Trade accounts payable | 22,212 | 11,809 |
Accrued expenses | 37,031 | 38,809 |
Other current liabilities | 3,904 | 6,067 |
Total current liabilities | 214,218 | 222,000 |
Long-term liabilities | ||
Long-term debt | 1,610,293 | 1,467,074 |
Obligations under capital leases | 87,930 | 255,700 |
Other long-term liabilities | 1,183 | 1,325 |
Total liabilities | 1,913,624 | 1,946,099 |
Commitments and contingencies | ||
Equity | ||
Share capital (169,821,192 shares. 2017: 169,809,324 shares. All shares are issued and outstanding at par value $1.00 per share) | 169,821 | 169,809 |
Additional paid in capital | 198,497 | 197,399 |
Contributed surplus | 1,090,376 | 1,090,376 |
Accumulated other comprehensive income | 224 | 2,227 |
Retained (deficit) earnings | (295,118) | (272,503) |
Total equity attributable to the Company | 1,163,800 | 1,187,308 |
Non-controlling interest | 417 | 321 |
Total equity | 1,164,217 | 1,187,629 |
Total liabilities and equity | $ 3,077,841 | $ 3,133,728 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Equity | ||||
Share capital, shares outstanding (in shares) | 169,821,192 | 169,809,324 | 169,809,324 | 781,937,649 |
Ordinary shares issued (dollars per share) | $ 1 | $ 1 | $ 1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash and Cash Equivalents [Line Items] | |||
Net (loss) income | $ (8,398) | $ (264,322) | $ 117,514 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation | 122,566 | 141,748 | 141,043 |
Amortization of deferred charges | 2,472 | 1,913 | 2,027 |
Other operating losses (gains) | (10,308) | (2,378) | 2,683 |
Gain on sale of shares | (1,026) | (1,061) | 0 |
Amortization of time charter contract value | 0 | 0 | (6,799) |
Contingent rental income | 19,738 | 26,148 | 18,621 |
Impairment loss on vessels and vessels held under capital lease | 0 | 164,187 | 61,692 |
Provision for uncollectible receivable | 0 | 0 | 4,000 |
Mark to market on marketable securities | 3,526 | 0 | 0 |
Share of results from associated company and gain on equity interest | (246) | 0 | 0 |
Impairment loss on goodwill | 0 | 112,821 | 0 |
Impairment loss on marketable securities | 0 | 0 | 7,233 |
Mark to market (gain) loss on derivatives | (3,190) | (93) | (8,017) |
Other, net | 743 | 1,953 | (1,232) |
Changes in operating assets and liabilities, net of acquisition: | |||
Trade accounts receivable | (133) | (506) | 4,287 |
Other receivables | 227 | 2,122 | 10,833 |
Inventories | (7,323) | (24,079) | (12,241) |
Voyages in progress | (41,486) | 7,084 | 6,828 |
Prepaid expenses and accrued income | (1,633) | (429) | (1,427) |
Other current assets | (2,349) | (1) | 406 |
Trade accounts payable | 10,403 | 7,485 | (5,175) |
Accrued expenses | (1,177) | 12,645 | (2,936) |
Related party balances | 6,990 | 3,062 | (10,707) |
Other current liabilities | (2,163) | (6,178) | (5,583) |
Other | (51) | 660 | 207 |
Net cash provided by operating activities | 46,171 | 130,485 | 286,015 |
Investing activities | |||
Change in restricted cash | 0 | 0 | 0 |
Additions to newbuildings, vessels and equipment | (216,310) | (713,560) | (622,460) |
Refund of newbuilding installments and interest | 0 | 0 | 43,497 |
Purchase of shares | 0 | (46,100) | 0 |
Proceeds from sale of newbuilding vessels | 0 | 0 | 173,187 |
Investment in associated company | (6,000) | 0 | 0 |
Finance lease payments received | 5,336 | 9,745 | 9,333 |
Net proceeds from sale of shares | 17,757 | 27,412 | 0 |
Net cash used in investing activities | (199,217) | (722,503) | (396,443) |
Financing activities | |||
Net proceeds from issuance of shares | 85 | 0 | 98,200 |
Proceeds from long-term debt | 298,871 | 673,416 | 356,066 |
Repayment of long-term debt | (172,412) | (83,951) | (169,883) |
Payment of obligations under finance leases | (10,094) | (31,854) | (61,677) |
Debt fees paid | 0 | (3,495) | (9,523) |
Receipts (payments) resulting from lease terminations | (22,391) | (19,006) | |
Cash dividends paid | (386) | (51,401) | (164,551) |
Payment of fractional shares on reverse share split | 0 | 0 | (17) |
Proceeds from secured short-term borrowings | 0 | 10,116 | 0 |
Net cash provided by financing activities | 116,064 | 493,825 | 48,615 |
Net change in cash, cash equivalents and restricted cash | (36,982) | (98,193) | (61,813) |
Cash , cash equivalents and restricted cash at beginning of year | 104,886 | 203,079 | 264,892 |
Cash, cash equivalents and restricted cash at end of year | 67,904 | 104,886 | 203,079 |
Supplemental disclosure of cash flow information: | |||
Interest paid, net of interest capitalized | 80,887 | 57,291 | 53,474 |
Income taxes paid | 329 | 1,222 | 716 |
Non cash element | |||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Contingent rental income | 21,273 | 26,148 | 18,621 |
Financing activities | |||
Receipts (payments) resulting from lease terminations | $ 0 | $ (19,006) | $ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Share Capital [Member] | Additional Paid In Capital [Member] | Contributed Surplus [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] | Parent [Member] | Noncontrolling Interest [Member] |
Balance at the beginning of year (in shares) at Dec. 31, 2015 | 781,937,649 | |||||||
Increase (decrease) in Equity [Roll Forward] | ||||||||
Effect of reverse split on common stock outstanding (in shares) | (625,551,143) | |||||||
Shares issued (in shares) | 13,422,818 | |||||||
Balance at the end of year (in shares) at Dec. 31, 2016 | 169,809,324 | |||||||
Balance at beginning of year at Dec. 31, 2015 | $ 781,938 | $ 109,386 | $ 474,129 | $ (383) | $ 81,212 | $ 61 | ||
Increase (decrease) in Equity [Roll Forward] | ||||||||
Stock compensation expense | 1,418 | |||||||
Payment for fractional shares on reverse share split | $ 17 | (17) | ||||||
Effect of reverse share split | (625,551) | 625,551 | ||||||
Shares issued | 13,422 | 84,517 | ||||||
Other comprehensive income (loss) | 1,122 | 1,122 | ||||||
Net income (loss) | 117,514 | 117,010 | 504 | |||||
Change in accounting policy: ASC 606/340 | 0 | |||||||
Change in accounting policy: Marketable securities | 0 | 0 | ||||||
Cash dividends | 0 | (164,153) | ||||||
Dividend paid to non-controlling interest | (397) | |||||||
Balance at the end of year at Dec. 31, 2016 | $ 1,499,769 | 169,809 | 195,304 | 1,099,680 | 739 | 34,069 | $ 1,499,601 | 168 |
Increase (decrease) in Equity [Roll Forward] | ||||||||
Effect of reverse split on common stock outstanding (in shares) | 0 | |||||||
Shares issued (in shares) | 0 | |||||||
Balance at the end of year (in shares) at Dec. 31, 2017 | 169,809,324 | |||||||
Increase (decrease) in Equity [Roll Forward] | ||||||||
Stock compensation expense | 2,095 | |||||||
Payment for fractional shares on reverse share split | $ 0 | 0 | ||||||
Effect of reverse share split | 0 | 0 | ||||||
Shares issued | 0 | 0 | ||||||
Other comprehensive income (loss) | 1,488 | 1,488 | ||||||
Net income (loss) | (264,322) | (264,861) | 539 | |||||
Change in accounting policy: ASC 606/340 | 0 | |||||||
Change in accounting policy: Marketable securities | 0 | 0 | ||||||
Cash dividends | (9,304) | (41,711) | ||||||
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] | ||||||||
Effect of reverse split on common stock outstanding (in shares) | 0 | |||||||
Shares issued (in shares) | 11,868 | |||||||
Balance at the end of year (in shares) at Dec. 31, 2018 | 169,821,192 | |||||||
Increase (decrease) in Equity [Roll Forward] | ||||||||
Stock compensation expense | 1,025 | |||||||
Payment for fractional shares on reverse share split | $ 0 | 0 | ||||||
Effect of reverse share split | 0 | 0 | ||||||
Shares issued | 12 | 73 | ||||||
Other comprehensive income (loss) | 893 | 893 | ||||||
Net income (loss) | (8,398) | (8,880) | 482 | |||||
Change in accounting policy: ASC 606/340 | (16,631) | |||||||
Change in accounting policy: Marketable securities | (2,896) | 2,896 | ||||||
Cash dividends | 0 | 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 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018, the Company's fleet consisted of 61 vessels, with an aggregate capacity of approximately 11.6 million dwt. The Company's fleet consisted of: (i) 46 vessels owned by the Company ( 12 VLCCs, 16 Suezmax tankers and 18 LR2/Aframax tankers), (ii) three VLCCs that are under capital leases, (iii) one VLCC that is recorded as an investment in a finance lease, (iv) two VLCCs chartered-in from an unrelated third party, and (v) nine vessels that are under the Company's commercial management ( three VLCCs, two Suezmax tankers, two LR2 tankers and two Aframax oil tankers). Furthermore, the Company has two VLCC newbuildings under construction with a carrying capacity of 0.6 million dwt, of which one was delivered in January 2019 and one is expected to be delivered in April 2019. |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
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 capital 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 capital lease and the operating costs (including dry docking costs) of those vessels, the expected contingent rental expense, if applicable, to be included in obligations under capital 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 years ended December 31, 2017 and 2016. In 2018, the Company adopted the targeted improvements to ASC 825-10 Recognition and Measurement of Financial Assets and Liabilities. The Company has 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 capital lease The Company charters-in certain vessels and equipment under leasing agreements. Leases of vessels and equipment, where the Company has substantially all the risks and rewards of ownership, are classified as capital leases. Each lease payment is allocated between liability and finance charges to achieve a constant rate on the capital balance outstanding. The interest element of the capital cost is charged to the Consolidated Statement of Operations over the lease period. Each of the Company's capital 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 capital 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 capital lease is included within "Depreciation" in the Consolidated Statement of Operations. Vessels and equipment under capital lease are depreciated on a straight-line basis over the shorter of the vessels' remaining economic useful lives or on a straight-line basis over the term of the lease. Upon termination of a capital 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). 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 second hand 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 for the vessels held under capital lease. 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 Adoption of ASC 606 Revenue from Contracts with Customers 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 continue to be accounted for under ASC 840 leases and revenues are recorded over the term of the charter as a service is provided. When a time charter contract is linked to an index, we recognize revenue for the applicable period based on the actual index for that period. In a voyage charter contract, the charterer hires the vessel to transport a specific agreed-upon cargo for a single voyage. The consideration in such a contract is determined on the basis of a freight rate per metric ton of cargo carried or occasionally on a lump sum basis. The charterer is responsible for any short loading of cargo or "dead" freight. The voyage charter party generally has standard payment terms with freight paid on completion of discharge. The voyage charter party generally has a "demurrage" clause. As per this clause, the charterer reimburses us for any potential delays exceeding the allowed laytime as per the charter party clause at the ports visited, which is recorded as voyage revenue, as such, demurrage is considered variable consideration under the contract. Estimates and judgments are required in ascertaining the most likely outcome of a particular voyage and actual outcomes may differ from estimates. Such estimates are reviewed and updated over the term of the voyage charter contract. In a voyage charter contract, the performance obligations begin to be satisfied once the vessel begins loading the cargo. Effective from January 1, 2018, the Company adopted the new accounting standard ASC 606 Revenue from Contracts with Customers using the modified retrospective method. The Company recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of accumulated deficit. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. Voyage and other contracts not qualifying as leases are accounted for under the provisions of ASC 606. The Company has have 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. 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. 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. Other operating (losses) gains Other operating (losses) gains relate to (i) gains and losses on the termination of capital 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 capital leases, which were 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. 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, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | 3. RECENT ACCOUNTING PRONOUNCEMENTS In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , and has since modified the standard with several ASUs (collectively, the new lease standard). The standard is effective from January 1, 2019. 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 will be zero because (i) the Company does not have any unamortized initial direct costs as of January 1, 2019 that needs to be written off; (ii) the Company does not have any lease incentives or accrued rental transactions that needs 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. In determining the appropriate discount rate to use in calculating the present value of the Company’s contractual lease payments, the Company will make significant judgements and assumptions to estimate the its incremental borrowing rate 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 currently has three major categories of leases - chartered-in vessels, vessels under capital lease and leased office and other space. Upon adoption of ASC 842, management expects that based on our current portfolio of leases, assets and liabilities on the consolidated balance sheet will increase by between $15 million and $28 million due to the recognition of right-of-use assets and corresponding lease liabilities. The Company is still assessing the probability of certain lease option periods which will impact the lease liabilities and assets recognized, it is expected that this assessment will be concluded during Q1 2019. The Company does not expect the implementation of this standard to cause a material change in the Company's operating expenses in the fiscal year 2019, the assessment of the disclosure impact of these changes is ongoing and is expected to be concluded during Q1 2019. The Company does not expect to elect 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 will elect not to apply ASC 842 to its portfolio of short-term leases existing on January 1, 2019. For arrangements where we are the lessor, we do not expect the adoption of the new lease standard to have a material impact on our financial statements. 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 will elect 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. We are in the process of updating processes and implementing new internal controls over lease recognition to assist in the application of the new lease standard. 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. The guidance will be effective January 1, 2020, with early adoption permitted. 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. The Company is in the process of evaluating the impact of this standard update on its consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-04 Intangibles - Goodwill and other (Topic 350), which simplifies the test for goodwill impairment. This 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 amendments in this Update are effective for the Company for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company is in the process of evaluating the impact of this standard update on its consolidated financial statements and related disclosures. 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 amendments in this Update are effective for the Company for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company is in the process of evaluating the impact of this standard update on its consolidated financial statements and related disclosures. 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 update is effective January 1, 2020 and early adoption is permitted. We are currently evaluating the impact of the adoption of the accounting standard on our consolidated financial statements. Accounting Standards Updates, recently adopted 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. The core principle is that a company should recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. Under ASC 606, an entity is required to perform the following five steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations of the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfied a performance obligation. Additionally, the guidance requires improved disclosures as to the nature, amount, timing and uncertainty of revenue that is recognized. 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. 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 and related interpretations and 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. The new guidance also specifies revised treatment for certain contract related costs, being either incremental costs to obtain a contract, or cost to fulfill a contract. Under the new guidance, an entity shall recognize as an asset the incremental costs of obtaining a contract with a customer if the entity expects to recover those costs. The guidance also provides a practical expedient whereby an entity may recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. Cost to fulfill a contract must be capitalized if they meet certain criteria. Contract assets with regards to voyage revenues are reported as "Voyages in progress" as the performance obligation is satisfied over time. When voyage revenues become billable, the receivable is recognized as "Trade accounts receivable, net". If at the reporting period the billable amount under the charter party exceeds the accrued revenue for a specific ongoing voyage, such an amount, or contract liability, would be recognized as deferred charter revenue under other current liabilities. 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 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. $9.1 million of contract assets were capitalized as of December 31, 2018 as "Other current assets", of which $3.7 million was amortized up to December 31, 2018, leaving a remaining balance of $5.4 million . $3.1 million of contract assets were amortized in the year ended December 31, 2018 in relation to voyages in progress at the end of December 31, 2017. No impairment losses were recognized in the period. 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. 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 our beginning of period 2018, 2017 and 2016 balances, restricted cash of $1.4 million , $0.7 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, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL (in thousands of $) Goodwill Accumulated impairment losses Net carrying value Balance as of December 31, 2016 225,273 — 225,273 Impairment loss — (112,821 ) Balance as of December 31, 2017 225,273 (112,821 ) 112,452 Balance as of December 31, 2018 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 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 million (based on a share price of $4.59 ) and the Company has 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 estimates that the fair value of the underlying assets and liabilities amount to approximately $901 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 is 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. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 5. 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. Revenues from one customer in the year ended December 31, 2018 individually accounted for 10% or more of the Company's consolidated revenues in the amount of $81.1 million . No customers in the year ended December 31, 2017 , accounted for 10% or more of the Company's consolidated revenues. Revenues from two customers in the year ended December 31, 2016 , accounted for 10% or more of the Company's consolidated revenues in the amount of $117.8 million and $78.0 million . |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 6. 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, 2018, 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 2018 (2017: nil , 2016: $0.9 million ). 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. 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, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 7. 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 anti-dilutive in each year as the exercise price was higher than the average share price and, therefore 1,317,000 , 1,170,000 and 1,170,000 options were excluded from the denominator in the calculation for 2018, 2017 and 2016 respectively. The components of the numerator and the denominator in the calculation of basic and diluted earnings per share are as follows: (in thousands of $) 2018 2017 2016 Net (loss) income from continuing operations after non-controlling interest (8,880 ) (264,861 ) 117,010 Net (loss) income attributable to the Company (8,880 ) (264,861 ) 117,010 (in thousands) 2018 2017 2016 Weighted average number of ordinary shares 169,810 169,809 156,973 2018 2017 2016 Cash dividends per share declared $0.00 $0.30 $1.05 All share and per share amounts outstanding have been adjusted for the reverse business acquisition of the Company by Frontline 2012 and the 1-for- 5 reverse share split that was effected in February 2016, unless otherwise stated. |
OTHER OPERATING (LOSSES) GAINS
OTHER OPERATING (LOSSES) GAINS | 12 Months Ended |
Dec. 31, 2018 | |
GAIN ON SALE OF ASSETS AND AMORTIZATION OF DEFERRED GAINS [Abstract] | |
OTHER OPERATING (LOSSES) GAINS | 8. OTHER OPERATING GAINS (LOSSES) (in thousands of $) 2018 2017 2016 Gain (loss) on cancellation of newbuilding contracts — — (2,772 ) Gain (loss) on lease termination 10,324 2,379 89 Gain (loss) on pool arrangements (118 ) 2 — 10,206 2,381 (2,683 ) In June 2016, the Company entered into an agreement to sell its six MR tankers for an aggregate price of $172.5 million to an unaffiliated third party. Five of these vessels were delivered by the Company in August and September 2016 and the final vessel was delivered in November 2016. The Company recorded an impairment loss of $18.2 million in 2016 in respect of these vessels. In October 2016, the Company entered into an agreement with STX Offshore & Shipbuilding Co., Ltd in Korea, or STX, to terminate the contracts for four VLCC newbuildings due for delivery in 2017. The Company recorded a loss of $2.8 million related to these contract terminations. In the year ended December 31, 2018 we terminated the leases on six VLCCs, recognizing a gain of $10.3 million . In the year ended December 31, 2017 we terminated the leases on two VLCCs and two Suezmax tankers, recognizing a gain of $2.4 million . In the year ended December 31, 2016 we terminated the lease on one VLCC and recognized a gain of $0.1 million . Further information on the gain (loss) on termination of leases can be found in note 17. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
LEASES | 9. LEASES As of December 31, 2018 , the Company leased in three vessels on long-term time charter (2017: nine vessels), all of which were leased from Ship Finance. All of these long-term charters are classified as capital leases. Two further vessels are leased in on short-term time charter (2017: one vessel) from a third party and have been classified as operating leases. Furthermore, the Company is committed to make rental payments under operating leases for office premises. Rental expense The future minimum rental payments under the Company's non-cancellable operating leases 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 $23.2 million , $21.2 million and $71.8 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Contingent rental expense In November 2015, a subsidiary of the Company entered into an agreement to charter-in a VLCC tanker on a fixed rate charter whereby the net earnings of the vessel in excess of/below the daily fixed rate charter hire expense will be shared equally. At December 31, 2018 , $0.7 million was recognized as a reduction in charterhire expense as the earnings of the vessel were below the fixed daily hire (2017 expense: $0.3 million ). Rental income One vessel was on fixed rate time charter at December 31, 2018 (2017: six vessels). Two vessels were on variable rate time charters at December 31, 2018 (2017: Nil vessels). The minimum future revenues to be received under these 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 as of December 31, 2018 were $158.8 million and $12.3 million , respectively, and as of December 31, 2017 were $294.1 million and $44.9 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 for approximately one year. The Company recognized charter income of $2.7 million in the year ended December 31, 2018 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 for approximately six months. The Company recognized charter income of $2.4 million in the year ended December 31, 2018 in relation to this charter. In March 2015, the Company entered into an agreement to charter-out two Suezmax tankers on fixed rate time charters whereby the counterparty agreed to pay the Company a profit sharing payment equal to 50% of the charter revenues earned in excess of daily base charter hire paid. These vessels were redelivered from the charters during March and April 2016 with profit share income in the year ending December 31, 2017 and 2018 of nil , (2016: $0.7 million ). In December 2014, the Company entered into agreements to charter-out two Suezmax tankers on index linked time charters. These vessels were redelivered to the Company in January and July 2016. The Company earned time charter revenues in the year ending December 31, 2016: $7.1 million and December 31, 2015: $27.7 million . |
RESTRICTED CASH
RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2018 | |
Restricted Cash [Abstract] | |
RESTRICTED CASH | 10. 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 $37.9 million (2017: $74.0 million ), which represents 50% (2017: 100% ) of the cash required to be maintained by the financial covenants in our loan agreements. The Company is permitted to satisfy up to 50% of the cash requirement by maintaining a committed undrawn credit facility with a remaining availability of greater than 12 months. These amounts are included in "Cash and cash equivalents". Furthermore, Frontline Shipping Limited, a wholly owned subsidiary of the Company and the chartering counterparty with Ship Finance 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, Frontline Shipping Limited 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, 2018, the cash held by Frontline Shipping Limited of $3.5 million (2017: $8.9 million ), may solely be used for vessel operations, payment of hire to Ship Finance 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, 2018 | |
INVESTMENT IN FINANCE LEASE [Abstract] | |
INVESTMENT IN FINANCE LEASE | 11. INVESTMENT IN FINANCE LEASE As of December 31, 2018 , one of the Company's vessels was accounted for as a sales-type lease ( 2017 : one ). The components of the investment in the sales-type lease may be summarized as follows: (in thousands of $) 2018 2017 Net minimum lease payments receivable 11,651 22,070 Estimated residual values of leased property (unguaranteed) 10,821 10,821 Less: finance lease interest income (690 ) (1,983 ) Total investment in sales-type lease 21,782 30,908 Current portion 10,803 9,126 Long-term portion 10,979 21,782 21,782 30,908 The minimum future gross revenues to be received under the sales-type lease as of December 31, 2018 are as follows: (in thousands of $) 2019 11,493 2020 158 2021 — 2022 — 2023 — Thereafter — 11,651 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, 2018 | |
Marketable Securities [Abstract] | |
MARKETABLE SECURITIES | 12. 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 $) 2018 2017 Balance at start of the year 19,231 8,428 Repurchase of marketable securities pledged to creditors 10,272 — Shares acquired — 46,100 Shares disposed of (16,749 ) (26,351 ) Unrealized gain (loss) recorded in income statement (3,526 ) — Unrealized gain (loss) recorded in other comprehensive income — 1,326 Marketable securities reclassified as pledged to creditors (8,392 ) (10,272 ) Total 836 19,231 The brought forward balance includes marketable securities pledged to creditors which are subsequently reclassified. Avance Gas As of December 31, 2018 , 2017 and 2016, the Company holds 442,384 shares in Avance Gas, which are recorded as marketable securities pledged to creditors as at December 31, 2018. An impairment loss of $ 4.9 million was recorded in the year ended December 31, 2016, in respect of the mark to market loss on the Avance Gas shares that was determined to be other than temporary in view of the significant fall in rates and the short to medium term prospects for the LPG sector at that time. In the period ended December 31, 2017, the Company recognized a mark to market loss of $0.09 million in relation to the 0.4 million shares held in Avance Gas in Other Comprehensive Income. In the period ended December 31, 2018, the Company recognized a mark to market loss of $0.6 million in relation to the 0.4 million shares held in Avance Gas in the Statement of Operations. Ship Finance As of December 31, 2018 and 2017, the Company owned 73,383 shares in Ship Finance, which were acquired as a result of the Merger. In the period ended December 31, 2017, the Company recognized a mark to market gain of $0.05 million in relation to the 0.1 million shares held in Ship Finance in Other Comprehensive Income. In the period ended December 31, 2018, the Company recognized a mark to market loss of $0.4 million in relation to the 0.1 million shares held in Ship Finance in the Statement of Operations. Golden Ocean As of December 31, 2018 and 2017 the Company held 1,270,657 shares in Golden Ocean. An impairment loss of $2.4 million was recorded in the three months ended March 31, 2016, in respect of the mark to market loss on the Golden Ocean shares that was determined to be other than temporary in view of the significant fall in rates in the Baltic Dry Index and the short to medium term prospects for the dry bulk sector. In December 2017, the Company sold 1,260,358 shares of Golden Ocean for total proceeds of $10.1 million . At the same time the Company entered into a forward contract to repurchase 1.3 million shares of Golden Ocean in March 2018 for $10.3 million . The transaction has been accounted for as a secured borrowing, with the shares reclassified to marketable securities pledged to creditors and a liability recorded within debt for $10.1 million . In March 2018, the Company repurchased these shares and simultaneously sold the shares for total proceeds of $10.4 million . At the same time the Company entered into a forward contract to repurchase 1.3 million shares of Golden Ocean in June 2018 for $10.4 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 debt for $10.3 million . In June 2018, the Company repurchased these shares and simultaneously sold them for total proceeds of $11.2 million . At the same time the Company entered into a forward contract to repurchase 1.3 million shares of Golden Ocean in September 2018 for $11.4 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 debt for $11.2 million . In September 2018, the Company repurchased and simultaneously sold the shares for total proceeds of $11.8 million . At the same time the Company entered into a forward contract to repurchase 1.3 million shares of Golden Ocean in December 2018 for $11.9 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 debt for $11.9 million . In December 2018, the Company repurchased and simultaneously 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 retained in marketable securities pledged to creditors and a liability recorded within debt for $7.6 million as at December 31, 2018. As of December 31, 2018 the Company reports a total of 1,270,657 shares of Golden Ocean (as adjusted for the 1-for- 5 reverse share split in August 2016), of which 1,260,358 are held as marketable securities pledged to creditors. In the period ended December 31, 2018, the Company recognized a mark to market loss of $2.5 million in relation to the 1.3 million shares held in Golden Ocean Group Ltd in the Statement of Operations. DHT The company acquired 10.9 million shares in DHT in the three months ended March 31, 2017 for an aggregate cost of $46.1 million . In the period ended December 31, 2017, the Company sold a total of 6.2 million shares in DHT for proceeds of $27.4 million , recognizing a gain of $1.1 million in the statement of operations of which $0.6m relate to the gain reclassification from Other Comprehensive Income. In the period ended December 31, 2017, the Company recognized a mark to market loss of $3.0 million in relation to the shareholding in DHT in Other Comprehensive Income. In the period ended December 31, 2018, the Company sold 4.7 million shares of DHT Holdings Inc., for proceeds of $17.8 million , recognizing a gain on disposal of $1.0 million in the Statement of Operations. On January 1, 2018, the Company adopted the targeted improvements to ASC 825-10 Recognition and Measurement of Financial Assets and Liabilities. As a result of the adoption of this guidance the Company is required to recognize the movement in the fair value of Marketable Securities in the Consolidated Statement of Operations. Details on accounting policies can be found in Note 2 Accounting Policies. |
TRADE ACCOUNTS RECEIVABLE, NET
TRADE ACCOUNTS RECEIVABLE, NET | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
TRADE ACCOUNTS RECEIVABLE, NET | 13. TRADE ACCOUNTS RECEIVABLE, NET Trade accounts receivable are presented net of allowance for doubtful accounts of $5.8 million (2017: $6.0 million ). Movements in the allowance for doubtful accounts in the three years ended December 31, 2018 is summarized as follows; (in thousands of $) Balance at December 31, 2015 1,678 Additions charged to income 4,492 Balance at December 31, 2016 6,170 Deductions credited to income (172 ) Balance at December 31, 2017 5,998 Deductions credited to income (203 ) Balance at December 31, 2018 5,795 |
OTHER RECEIVABLES
OTHER RECEIVABLES | 12 Months Ended |
Dec. 31, 2018 | |
OTHER RECEIVABLES [Abstract] | |
OTHER RECEIVABLES | 14. OTHER RECEIVABLES (in thousands of $) 2018 2017 Claims receivable 9,690 5,857 Agent receivables 3,733 3,518 Other receivables 3,645 7,919 17,068 17,294 Claims receivable are primarily attributable to insurance claims. Other receivables are presented net of allowances for doubtful accounts amounting to nil as of December 31, 2018 ( 2017 : nil ). |
NEWBUILDINGS
NEWBUILDINGS | 12 Months Ended |
Dec. 31, 2018 | |
NEWBUILDINGS [Abstract] | |
NEWBUILDINGS | 15. NEWBUILDINGS Movements in the three years ended December 31, 2018 may be summarized as follows: (in thousands of $) Balance at December 31, 2015 266,233 Additions, net, continuing basis 614,116 Transfer to Vessels and equipment, net (532,766 ) Interest capitalized, continuing basis 6,994 Cancellations (46,253 ) 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 The following table sets forth certain details of our newbuildings delivered in the years ended December 31, 2018 and December 31, 2017: (in thousands of $) Vessel name Vessel type Date of delivery 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, 2016, the Company's newbuilding program comprised three VLCCs, six Suezmax tankers and seven LR2/Aframax tanker newbuldings. In February 2017, the Company acquired two VLCC newbuilding under construction at Daewoo Shipbuilding & Marine Engineering at a net purchase price of $77.5 million . One vessel was delivered in September 2017 and one vessel was delivered in January 2018. In April 2017, the Company ordered two VLCC newbuildings to be built at Hyundai Samho Heavy Industries. One vessel was delivered in January 2019 and the other vessel is due for delivery in April 2019. The Company’s options for two additional sister vessels have lapsed. 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. |
VESSELS AND EQUIPMENT
VESSELS AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
VESSELS AND EQUIPMENT | 16. VESSELS AND EQUIPMENT Movements in the three years ended December 31, 2018 may be summarized as follows: (in thousands of $) Cost Accumulated Depreciation Net Carrying Value Balance at December 31, 2015 1,311,544 (122,346 ) 1,189,198 Transfers from Newbuildings 532,766 — Additions 215 — Depreciation — (53,369 ) Impairment loss (36,311 ) 18,099 Disposals (173,203 ) — Balance at December 31, 2016 1,635,011 (157,616 ) 1,477,395 Depreciation — (77,547 ) Additions 894 — Transfers from Newbuildings 941,388 — 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 In June 2016, the Company entered into an agreement to sell its six MR tankers for an aggregate price of $172.5 million to an unaffiliated third party. Five of these vessels were delivered by the Company in August and September 2016 and the final vessel was delivered in November 2016. The Company recorded an impairment loss of $18.2 million in 2016 in respect of these vessels. A summary of our vessel deliveries in the years ended December 31, 2018 and December 31, 2017 can be found in note 15 Newbuildings. |
VESSELS UNDER CAPITAL LEASE, NE
VESSELS UNDER CAPITAL LEASE, NET | 12 Months Ended |
Dec. 31, 2018 | |
Leases, Capital [Abstract] | |
VESSELS UNDER CAPITAL LEASE, NET | 17. VESSELS UNDER CAPITAL LEASE, NET Movements in the three years ended December 31, 2018 may be summarized as follows: (in thousands of $) Cost Accumulated Depreciation Net Carrying Value Balance at December 31, 2015 706,219 (11,993 ) 694,226 Impairment loss (63,958 ) 20,478 Lease termination (34,812 ) 8,173 Depreciation — (87,674 ) 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 The outstanding obligations under capital leases as of December 31, 2018 are payable as follows: (in thousands of $) 2019 18,795 2020 17,606 2021 17,557 2022 16,419 2023 17,557 Thereafter 42,387 Minimum lease payments 130,321 Less: imputed interest (30,537 ) Present value of obligations under capital leases 99,784 In May 2015, the Company and Ship Finance agreed to amendments to the leases on 12 VLCCs and five Suezmaxes, 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 Ship Finance was reduced to $20,000 per day and $15,000 per day for VLCCs and Suezmaxes, respectively. The fee due from Ship Finance 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 Ship Finance 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 Frontline Shipping Limited, a wholly owned subsidiary of the Company and the chartering counterparty with Ship Finance, has agreed to certain dividend restrictions. In order to make or pay any dividend or other distribution to the Company, Frontline Shipping Limited 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, 2018, the cash held by Frontline Shipping Limited of $3.5 million (2017: $8.9 million ) may solely be used for vessel operations, payment of hire to Ship Finance 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, 2018, the Company has recorded total obligations under these capital leases of $99.8 million of which $67.3 million is in respect of the minimum contractual payments and $32.5 million is in respect of contingent rental expense. 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. Profit share arising in the year ended December 31, 2016 was $50.9 million , which was $18.6 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, December 31, 2017 and December 31, 2016: (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 Front Vanguard 2016 May 2016 July 2016 (293 ) 89 Vessels terminated in 2016 (293 ) 89 In September, 2016, the Company recorded an impairment loss of $8.9 million in respect of three vessels leased in from Ship Finance - the 1997-built Front Ardenne , the 1998-built Front Brabant and the 1998-built Front Century - based on a 25% probability assumption of terminating the vessel's lease before the next dry dock. This impairment loss included $5.6 million in respect of Front Century. In November 2016, the Company agreed with Ship Finance to terminate the long term charter for the 1998-built VLCC Front Century . The Company recorded an impairment loss of $27.3 million in the year ended December 31, 2016, based on a 100% probability assumption of terminating the vessel's lease before the next dry dock. In March 2017 the Company recorded an impairment loss of $21.2 million with respect to four vessels leased in from Ship Finance - 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 dry dock. In December 2017, the Company has recognized an impairment loss of $142.9 million on the remaining nine VLCCs chartered in from Ship Finance. The leasehold interest in these capital 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 has 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 capital lease at that time. In February 2018, the Company agreed with Ship Finance to terminate the long-term charter for the 1998-built VLCC Front Circassia upon the sale and delivery of the vessel by Ship Finance to an unrelated third party. The charter with Ship Finance terminated in February and the charter counter party Frontline Shipping Limited (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 Ship Finance, 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 capital 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 Ship Finance 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 Ship Finance to an unrelated third party. The charters with Ship Finance terminated in July, August and September, 2018 respectively and Frontline has agreed to make a compensation payment of approximately $10.125 million for the termination of the three charters to Ship Finance, which has been 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 have reduced obligations under capital 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 Ship Finance to terminate the long term charter for the 2001-built VLCC, Front Ariake, upon the sale and delivery of the vessel by Ship Finance to an unrelated third party. The charter terminated in October and Frontline has agreed to a total compensation payment to Ship Finance of $3.375 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 Ship Finance to terminate the long term charter for the 2002-built VLCC, Front Falcon, upon the sale and delivery of the vessel by Ship Finance to an unrelated third party. The charter terminated in December. No compensation is payable on termination of the charter. These terminations have reduced obligations under capital leases by approximately $55.2 million . The Company recorded a gain on termination, including the termination payment, of $8.9 million in the period. As of December 31, 2018 , the Company held three vessels under capital leases (2017: nine vessels), all of which are leased from Ship Finance. The remaining periods on these leases at December 31, 2018 range from 6 to 8 years. The Company recognized capital lease interest expense in 2018 $16.4 million (2017: $26.0 million ). None of these vessels have been subleased under noncancelable operating leases. |
EQUITY METHOD INVESTMENTS
EQUITY METHOD INVESTMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
EQUITY METHOD INVESTMENTS | 18. EQUITY METHOD INVESTMENTS In June 2018, the Company announced that it had entered into memorandum of agreement to acquire a 20% ownership interest in Feen Marine Scrubbers Inc., a manufacturer of exhaust gas cleaning systems, or 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 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 31 December 2018. |
OTHER LONG-TERM ASSETS OTHER LO
OTHER LONG-TERM ASSETS OTHER LONG-TERM ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Statement of Financial Position [Abstract] | |
OTHER LONG-TERM ASSETS | 19. 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, 2018 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | 20. ACCRUED EXPENSES (in thousands of $) 2018 2017 Voyage expenses 15,934 20,918 Ship operating expenses 7,879 6,758 Administrative expenses 2,365 1,867 Interest expense 9,914 6,297 Taxes 727 739 Drydocking expenses — 1,989 Other 212 241 37,031 38,809 |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
OTHER CURRENT LIABILITIES | 21. OTHER CURRENT LIABILITIES (in thousands of $) 2018 2017 Deferred charter revenue 304 1,653 Other 3,600 4,414 3,904 6,067 |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-term Debt [Text Block] | 22. DEBT (in thousands of $) 2018 2017 U.S. dollar denominated floating rate debt $500.1 million term loan facility 385,792 423,894 $60.6 million term loan facility 47,594 51,062 $466.5 million term loan facility 281,273 297,794 $109.2 million term loan facility 96,353 102,776 $328.4 million term loan facility 246,079 261,354 $321.6 million term loan facility 260,108 246,531 $110.5 million term loan facility (ING) 51,413 54,483 $110.5 million term loan facility (Credit Suisse) 103,747 54,162 $110.5 million term loan facility (Credit Suisse #2) 52,636 — Total U.S. dollar floating rate 1,524,995 1,492,056 U.S. dollar denominated fixed rate debt $275.0 million revolving credit facility 186,000 90,000 Total U.S. dollar fixed rate 186,000 90,000 Credit facilities 32 42 Secured borrowings 7,631 10,312 Promissory notes 21,894 — Total debt 1,740,552 1,592,410 Short term debt and current portion of long term debt 120,479 113,076 Deferred charges 9,780 12,260 Long term portion of debt 1,610,293 1,467,074 The outstanding debt as of December 31, 2018 is repayable as follows: (in thousands of $) 2019 120,479 2020 608,569 2021 429,908 2022 48,788 2023 158,200 Thereafter 374,608 1,740,552 $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, 2018 . $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 second hand 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 $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, 2018 . $500.1 million term loan facility In December 2015, subsidiaries of the Company signed a new $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 $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, 2018 . $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 drew down $155.0 million in the year ended December 31, 2018 and up to $89.0 million remains available and undrawn as at year end. In November 2018 the Company extended the terms of the facility by 12 months. Following the extension, the facility is repayable in November 2020. The balance outstanding is included in long-term debt as at December 31, 2018. $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, 2018 . $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, 2018 . $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. During 2018, the Company drew down $54.9 million in connection with one VLCC delivered in the period. The facility is fully drawn down as of December 31, 2018 . $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. This facility will be used to part finance eight of our newbuildings and will be secured by four Suezmax tankers and three LR2/Aframax tankers delivered in the year, and an LR2/Aframax newbuilding being delivered in 2018. The Company drew down $252.7 million in the year ended December 31, 2017 in connection with four Suezmax tankers and three LR2/Aframax tanker delivered in the period. During 2018, the Company drew down $32.0 million in connection with one LR2 tanker delivered in the period. The facility is fully drawn down as of December 31, 2018 . $110.5 million term loan facility (Credit Suisse) 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 facility will be used to partially finance two VLCC resales and newbuilding contracts and will be secured by one VLCC delivered in the period and one VLCC newbuilding being delivered in 2019. During 2018, the Company drew down $54.9 million in connection with one VLCC delivered in the period. Up to $55.3 million remains available and undrawn as at year end. $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 facility will be used to partially finance two of our recent VLCC resales and newbuilding contracts and will be secured by one VLCC delivered in the year ended December 31, 2017 and one VLCC newbuilding being delivered in 2019. The Company drew down $55.3 million in the year ended December 31, 2017 in connection with one VLCC delivered in the period. Up to $55.3 million remains available and undrawn as at year end. Promissory notes The sum of $21.9 million in relation to the promissory notes payable to Ship Finance, 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 17 of these Consolidated Financial Statements for further details. Secured borrowings In December 2017, the Company sold 1.3 million shares of Golden Ocean, for total proceeds of $10.1 million . At the same time, the Company entered into a forward contract to repurchase 1.3 million shares of Golden Ocean in March 2018 for $10.3 million . The transaction has been accounted for as a secured borrowing, with the shares transferred to 'Marketable securities pledged to creditors' and a liability recorded at December 31, 2017 within debt for $10.3 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. As at December 31, 2017, 442,384 shares in Avance Gas were held as collateral with the remaining balance being paid to the counterparty as cash collateral in January 2018. 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 transferred to 'Marketable securities pledged to creditors' and a liability recorded at December 31, 2018 within 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 with the remaining balance being paid to the counterparty as cash collateral in January 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 contains 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 $37.9 million (2017: $74.0 million ), which represents 50% (2017: 100% ) of the cash required to be maintained by the financial covenants in our loan agreements. The Company is permitted to satisfy up to 50% of the cash requirement by maintaining a committed undrawn credit facility with a remaining availability of greater than 12 months. 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, 2018 . Assets pledged (in thousands of $) 2018 2017 Vessels, net 2,475,649 2,341,069 Deferred charges (in thousands of $) 2018 2017 Debt arrangement fees 17,490 17,490 Accumulated amortization (7,710 ) (5,230 ) 9,780 12,260 During 2018, the Company paid $0.01 million (2017: $3.5 million ) with respect to debt arrangement fees. |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2018 | |
SHARE CAPITAL [Abstract] | |
SHARE CAPITAL | 23. SHARE CAPITAL Offering On December 16, 2016, the Company completed an offering of 13,422,818 new ordinary shares at $7.45 per share, or the Offering, generating net proceeds of $98.2 million . The Company's largest shareholder, Hemen, guaranteed the Offering and was allocated 1,342,281 new ordinary shares in the Offering, corresponding to 10% of the Offering. Hemen owns 82,145,703 shares in the Company upon completion of the Offering, or approximately 48.4% of the Company's shares and votes. Capital Reorganization A resolution was approved at the Company’s Special Meeting of Shareholders on January 29, 2016, to effect a capital reorganization with effect from February 3, 2016, for a 1-for- 5 reverse share split of the Company’s ordinary shares and to reduce the Company’s authorized share capital from $1,000,000,000 divided into 1,000,000,000 shares of $1.00 par value each to $500,000,000 divided into 500,000,000 shares of $1.00 par value each. The authorized share capital of the Company as at December 31, 2016 is $500,000,000 divided into 500,000,000 share of $1.00 par value each. 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 December 2018, 11,868 shares were issued for combined proceeds of $0.1 million . The following table summarizes the movement in the number of shares outstanding during the two years ended December 31, 2018 ; Outstanding shares at December 31, 2016 169,809,324 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 |
SHARE OPTIONS
SHARE OPTIONS | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE OPTIONS | 24. 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 plan 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 vest over one year, one third vest over two years and one third vest 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 vest in July 2019. The options have a thirty-three month term. The fair value of the newly granted option awards is 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 has been 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 was $8.00 per option and is reduced by the amount of dividends paid after the date of grant. As at December 31, 2018, the exercise price of the options granted in July 2016 was $7.40 and the Company's share price was $5.53 . As at December 31, 2018, 780,000 shares had vested. 33,000 of these share options had expired or been forfeited at December 31, 2018. 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. As at December 31, 2017, there was $1.2 million in unrecognized stock compensation expense related to non-vested options. Stock compensation expense of $1.0 million was recognized in 2018 (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 shares for the the options granted in 2018. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS | 25. 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 has a forward start date of February 2019. The aggregate fair value of these swaps at December 31, 2018 was a receivable of $7.6 million (2017: receivable of $4.5 million ). 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 amount is the present value of future cash flows. The Company recorded a gain on these interest rate swaps of $4.3 million in 2018 ( 2017 : loss of $0.8 million , 2016: gain of $1.9 million ). The interest rate swaps are not designated as hedges and are summarized as at December 31, 2018 as follows: Notional Amount Inception Date Maturity Date Fixed Interest Rate ($000s) 14,408 June 2013 June 2020 1.4025 % 42,951 September 2013 September 2020 1.5035 % 72,939 December 2013 December 2020 1.6015 % 14,062 March 2014 March 2021 1.6998 % 14,405 June 2014 June 2021 1.7995 % 14,748 September 2014 September 2021 1.9070 % 150,000 February 2016 February 2026 2.1970 % 323,513 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. 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 derivative contracts for either transaction or translation risk. Bunker swap agreements From time to time, the Company may enter into bunker swap agreements to hedge the cost of its fuel costs. In August 2015, the Company entered into four bunker swap agreements whereby the fixed rate on 4,000 metric tons per calendar month was switched to a floating rate. The Company is then exposed to fluctuations in bunker prices, as the cargo contract price is based on an assumed bunker price for the trade. There is no guarantee that the hedge removes all the risk from the bunker exposure, due to possible differences in location and timing of the bunkering between the physical and financial position. The contracts ended in December 2016. The fair value of these swaps at December 31, 2018, 2017 and 2016 was nil . The fair value (level 2) is the estimated amount that the Company would receive or pay to terminate the agreements at the reporting date, taking into account, as applicable forward rate curves and the current credit worthiness of both the Company and the derivative counterparty. The estimated amount is the present value of future cash flows. The Company recorded a gain of $1.9 million in 2016. Fair Values The carrying value and estimated fair value of the Company's financial instruments as of December 31, 2018 and 2017 are as follows: 2018 2017 (in thousands of $) Carrying Value Fair Value Carrying Value Fair Value Assets: Cash and cash equivalents 66,484 66,484 104,145 104,145 Restricted cash 1,420 1,420 741 741 Liabilities: Floating rate debt 1,525,028 1,525,028 1,492,099 1,492,099 Fixed rate debt 215,524 212,696 100,312 99,865 The estimated fair value of financial assets and liabilities are as follows: (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 (in thousands of $) 2017 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents 104,145 104,145 — — Restricted cash 741 741 — — Liabilities: Floating rate debt 1,492,099 — 1,492,099 — Fixed rate debt 99,865 — 10,312 89,553 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 two 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 At December 31, 2017 the nine vessels held under capital lease, all of which are leased from Ship Finance, were measured at a combined fair value of $251.7 million , which was determined using level three inputs being the discounted expected cash flows from the leased vessels at December 31, 2017. As at December 31, 2018 three vessels under capital lease remain and are carried at the values calculated at December 31, 2017 less subsequent depreciation. 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 their 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 Nor 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 SEB, Nordea and HSBC. However, the Company believes this risk is remote. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 26. 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: Ship Finance, Seadrill Limited, Seatankers Management Norway AS, GHL Finance Limited, Golden Ocean Group Limited, Arcadia Petroleum Limited, Deep Sea Supply Plc, Seatankers Management Co. Ltd, or Seatankers Management, Archer Limited, North Atlantic Drilling Ltd, Sterna Finance Limited, Flex LNG Limited and Northern Drilling Limited. In November 2014, Highlander Tankers AS, or Highlander Tankers, post fixture managers for the Company became a related party as Robert Hvide Macleod, the owner and director of Highlander Tankers, was appointed the Chief Executive Officer of Frontline Management AS. Frontline 2012 and the Company (and its subsidiaries) were related parties prior to the Merger. In October 2014, VLCC Chartering Ltd, or VLCC Chartering, was set up as a joint venture between the Company and Tankers International LLC, or TI. VLCC Chartering provides chartering services to the combined fleets of the Company and TI. Ship Finance Transactions Ship Finance are the counterparty to all vessels we hold as Vessels Under Capital Lease, further information can be found in note 17. 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. In the year ended December 31, 2016 we terminated the lease on one VLCC. Further information on the gain (loss) on termination of leases can be found in note 17. The sum of $21.9 million in relation to the promissory notes payable to Ship Finance, following the termination of the leases on Front Circassia, Front Page, Front Stratus, Front Serenade and Front Ariake is included within long-term debt. The Company was charged $0.9 million in the year ended December 31, 2018 for interest expense in relation to these notes. A summary of leasing transactions with Ship Finance in the years ended December 31, 2018 , 2017 and 2016 are as follows; (in thousands of $) 2018 2017 2016 Charter hire paid (principal and interest) 47,324 75,055 93,545 Lease termination receipt — — — Lease termination payments (22,391 ) (19,006 ) (293 ) Lease interest expense 16,400 25,980 35,417 Contingent rental income (19,738 ) (26,148 ) (18,621 ) Remaining lease obligation 99,784 299,016 422,600 Contingent rental income in 2018 is due to the fact that the actual profit share expense earned by Ship Finance in 2018 of $1.5 million (2017: $5.6 million ) was $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, Frontline 2012 commenced a pooling arrangement with Ship Finance, between two of its Suezmax tankers Front Odin and Front Njord and two Ship Finance vessels Glorycrown and Everbright. Frontline 2012 recognized income of $0.2 million in 2018 in relation to the pooling arrangement which is receivable from Ship Finance ( 2017 : expense of $2.1 million , 2016: expense of $0.9 million ). Seatankers Management Transactions In January 2016, the Company recharged $2.4 million of fit out costs to Seatankers Management Co. Ltd, which had been incurred on a leased office prior to its assignment to Seatankers Management Co. Ltd in December 2015. The Company entered into a Services Agreement with Seatankers Management, effective January 1, 2016, and was charged $0.8 million in the year ended December 31, 2018 (2017: $0.6 million , 2016: $0.7 million ) for the provision of advisory and other support services. 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. Furthermore the Company entered into agreements to purchase EGCS from FMSI for 20 vessels with a total value of $26.0 million , of which $1.1 million is to be paid by Ship Finance in relation to two vessels. In the year ended December 31, 2018 the Company made advance payments of $8.2 million in relation to these commitments. 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 drew down $155.0 million in the year ended December 31, 2018 from the facility and up to $89.0 million remains available and undrawn as at year end. In November 2018 the Company extended the terms of the facility by 12 months. Following the extension, the facility is repayable in November 2020. A summary of net amounts earned (incurred) from related parties for the years ended December 31, 2018 , 2017 and 2016 are as follows: (in thousands of $) 2018 2017 2016 Seatankers Management Co. Ltd 7,152 3,420 6,057 Ship Finance International Limited 2,001 3,473 1,552 Golden Ocean Group Limited 7,138 6,671 9,387 Seatankers Management Norway AS 735 767 919 Arcadia Petroleum Limited — — 929 Seadrill Limited 279 470 656 Archer Limited 317 238 235 Flex LNG Limited 1,788 4,432 1,204 Deep Sea Supply Plc 43 67 130 North Atlantic Drilling Ltd 29 37 48 Northern Drilling Ltd 43 — — Other related parties 15 — — 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 and interest income. Amounts paid to related parties comprise rental for office space and interest expense. Related party balances A summary of balances due from related parties at December 31, 2018 and 2017 is as follows: (in thousands of $) 2018 2017 Ship Finance International Limited 1,653 1,239 Seatankers Management Co. Ltd 2,657 52 Archer Ltd 173 88 VLCC Chartering Ltd 81 81 Golden Ocean Group Limited 2,370 1,953 Seadrill Limited 538 489 Deep Sea Supply Plc 68 68 Arcadia Petroleum Limited — — Flex LNG Limited 210 979 North Atlantic Drilling Ltd 116 103 Other related parties 29 16 7,895 5,068 A summary of balances due to related parties at December 31, 2018 and 2017 is as follows: (in thousands of $) 2018 2017 Ship Finance International Limited 8,886 6,349 Seatankers Management Co. Ltd 3,236 1,345 Golden Ocean Group Limited 5,558 1,227 Flex LNG Limited 1,058 — 18,738 8,921 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 27. COMMITMENTS AND CONTINGENCIES As of December 31, 2018 , the Company's newbuilding program comprised two VLCCs. As of December 31, 2018 , total installments of $51.1 million had been paid and the remaining installments to be paid amounted to $114.4 million , all due in 2019. The commitment includes EGCS on both newbuildings. The Company insures the legal liability risks for its shipping activities with Assuranceforeningen SKULD and Assuranceforeningen Gard Gjensidig, both mutual protection and indemnity associations. 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 $6.3 million as of December 31, 2018 (2017: approximately $7.9 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, 2018, the Company has committed to the purchase of EGCS on 18 vessels owned by the Company, excluding two EGCS being installed on the Company’s two newbuildings included above, with a financial commitment of $15.7 million excluding installation costs. The Company has also agreed with Ship Finance to share the cost of EGCS equally on two VLCCs chartered from Ship Finance. The Company's remaining commitment to purchase EGCS on these vessels is $1.0 million , excluding installation costs. These remaining commitments are due in 2019. As of December 31, 2018, the Company has committed to the installation of Ballast Water Treatment Systems on four vessels, with a remaining commitment of $2.8 million excluding installation costs, which is due in 2019. |
SUPPLEMENTAL INFORMATION
SUPPLEMENTAL INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
SUPPLEMENTAL INFORMATION | 28 SUPPLEMENTAL INFORMATION During 2016, the Company agreed with Ship Finance to terminate the long term charter for two vessels. The Company recognized a reduction in capital lease obligations of $27.1 million in the year ended December 31, 2016 and $24.6 million in the year ended December 31, 2017 in respect of these vessels. During 2017, the Company agreed with Ship Finance to terminate the long term charter for three vessels. The Company recognized a reduction in capital lease obligations of $53.2 million in the year ended December 31, 2017 in respect of these vessels. During 2018, the Company agreed with Ship Finance to terminate the long term charter for six vessels. The Company recognized a reduction in capital 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 Ship Finance can be found in note 17. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 29 SUBSEQUENT EVENTS In January 2019, the Company took delivery of the VLCC newbuilding Front Defender . In January 2019, the Company repaid $15 million under the senior unsecured facility of up to $275.0 million with an affiliate of Hemen Holding Ltd.. $104.0 million remains available and undrawn as at March 28, 2019. In January 2019, Frontline announced that its ownership interest in FMSI has increased to 28.9% following the purchase by FMSI of a 30.8% stake in FMSI from Bjørnar Feen. In January 2019, FMSI repaid $3 million of the interest free loan extended by Frontline to FMSI. In March 2019, the Company repurchased 1.3 million shares of Golden Ocean and simultaneously sold the shares for total proceeds of $6.6 million . At the same time, the Company entered into a forward contract to repurchase these shares in June 2019 for $6.7 million . |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , and has since modified the standard with several ASUs (collectively, the new lease standard). The standard is effective from January 1, 2019. 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 will be zero because (i) the Company does not have any unamortized initial direct costs as of January 1, 2019 that needs to be written off; (ii) the Company does not have any lease incentives or accrued rental transactions that needs 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. In determining the appropriate discount rate to use in calculating the present value of the Company’s contractual lease payments, the Company will make significant judgements and assumptions to estimate the its incremental borrowing rate 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 currently has three major categories of leases - chartered-in vessels, vessels under capital lease and leased office and other space. Upon adoption of ASC 842, management expects that based on our current portfolio of leases, assets and liabilities on the consolidated balance sheet will increase by between $15 million and $28 million due to the recognition of right-of-use assets and corresponding lease liabilities. The Company is still assessing the probability of certain lease option periods which will impact the lease liabilities and assets recognized, it is expected that this assessment will be concluded during Q1 2019. The Company does not expect the implementation of this standard to cause a material change in the Company's operating expenses in the fiscal year 2019, the assessment of the disclosure impact of these changes is ongoing and is expected to be concluded during Q1 2019. The Company does not expect to elect 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 will elect not to apply ASC 842 to its portfolio of short-term leases existing on January 1, 2019. For arrangements where we are the lessor, we do not expect the adoption of the new lease standard to have a material impact on our financial statements. 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 will elect 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. We are in the process of updating processes and implementing new internal controls over lease recognition to assist in the application of the new lease standard. 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. The guidance will be effective January 1, 2020, with early adoption permitted. 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. The Company is in the process of evaluating the impact of this standard update on its consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-04 Intangibles - Goodwill and other (Topic 350), which simplifies the test for goodwill impairment. This 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 amendments in this Update are effective for the Company for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company is in the process of evaluating the impact of this standard update on its consolidated financial statements and related disclosures. 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 amendments in this Update are effective for the Company for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company is in the process of evaluating the impact of this standard update on its consolidated financial statements and related disclosures. 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 update is effective January 1, 2020 and early adoption is permitted. We are currently evaluating the impact of the adoption of the accounting standard on our consolidated financial statements. Accounting Standards Updates, recently adopted 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. The core principle is that a company should recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. Under ASC 606, an entity is required to perform the following five steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations of the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfied a performance obligation. Additionally, the guidance requires improved disclosures as to the nature, amount, timing and uncertainty of revenue that is recognized. 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. 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 and related interpretations and 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. The new guidance also specifies revised treatment for certain contract related costs, being either incremental costs to obtain a contract, or cost to fulfill a contract. Under the new guidance, an entity shall recognize as an asset the incremental costs of obtaining a contract with a customer if the entity expects to recover those costs. The guidance also provides a practical expedient whereby an entity may recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. Cost to fulfill a contract must be capitalized if they meet certain criteria. Contract assets with regards to voyage revenues are reported as "Voyages in progress" as the performance obligation is satisfied over time. When voyage revenues become billable, the receivable is recognized as "Trade accounts receivable, net". If at the reporting period the billable amount under the charter party exceeds the accrued revenue for a specific ongoing voyage, such an amount, or contract liability, would be recognized as deferred charter revenue under other current liabilities. 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 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. $9.1 million of contract assets were capitalized as of December 31, 2018 as "Other current assets", of which $3.7 million was amortized up to December 31, 2018, leaving a remaining balance of $5.4 million . $3.1 million of contract assets were amortized in the year ended December 31, 2018 in relation to voyages in progress at the end of December 31, 2017. No impairment losses were recognized in the period. 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. 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 our beginning of period 2018, 2017 and 2016 balances, restricted cash of $1.4 million , $0.7 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. |
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 capital 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 capital lease and the operating costs (including dry docking costs) of those vessels, the expected contingent rental expense, if applicable, to be included in obligations under capital 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 years ended December 31, 2017 and 2016. In 2018, the Company adopted the targeted improvements to ASC 825-10 Recognition and Measurement of Financial Assets and Liabilities. The Company has 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 capital lease | Vessels and equipment under capital lease The Company charters-in certain vessels and equipment under leasing agreements. Leases of vessels and equipment, where the Company has substantially all the risks and rewards of ownership, are classified as capital leases. Each lease payment is allocated between liability and finance charges to achieve a constant rate on the capital balance outstanding. The interest element of the capital cost is charged to the Consolidated Statement of Operations over the lease period. Each of the Company's capital 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 capital 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 capital lease is included within "Depreciation" in the Consolidated Statement of Operations. Vessels and equipment under capital lease are depreciated on a straight-line basis over the shorter of the vessels' remaining economic useful lives or on a straight-line basis over the term of the lease. Upon termination of a capital 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). |
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 | 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 second hand 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 for the vessels held under capital lease. 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 Adoption of ASC 606 Revenue from Contracts with Customers 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 continue to be accounted for under ASC 840 leases and revenues are recorded over the term of the charter as a service is provided. When a time charter contract is linked to an index, we recognize revenue for the applicable period based on the actual index for that period. In a voyage charter contract, the charterer hires the vessel to transport a specific agreed-upon cargo for a single voyage. The consideration in such a contract is determined on the basis of a freight rate per metric ton of cargo carried or occasionally on a lump sum basis. The charterer is responsible for any short loading of cargo or "dead" freight. The voyage charter party generally has standard payment terms with freight paid on completion of discharge. The voyage charter party generally has a "demurrage" clause. As per this clause, the charterer reimburses us for any potential delays exceeding the allowed laytime as per the charter party clause at the ports visited, which is recorded as voyage revenue, as such, demurrage is considered variable consideration under the contract. Estimates and judgments are required in ascertaining the most likely outcome of a particular voyage and actual outcomes may differ from estimates. Such estimates are reviewed and updated over the term of the voyage charter contract. In a voyage charter contract, the performance obligations begin to be satisfied once the vessel begins loading the cargo. Effective from January 1, 2018, the Company adopted the new accounting standard ASC 606 Revenue from Contracts with Customers using the modified retrospective method. The Company recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of accumulated deficit. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. Voyage and other contracts not qualifying as leases are accounted for under the provisions of ASC 606. The Company has have 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. 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. 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. |
Other operating (losses) gains | Other operating (losses) gains Other operating (losses) gains relate to (i) gains and losses on the termination of capital 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 capital leases, which were 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. |
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 PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of goodwill | (in thousands of $) Goodwill Accumulated impairment losses Net carrying value Balance as of December 31, 2016 225,273 — 225,273 Impairment loss — (112,821 ) Balance as of December 31, 2017 225,273 (112,821 ) 112,452 Balance as of December 31, 2018 225,273 (112,821 ) 112,452 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 $) 2018 2017 2016 Net (loss) income from continuing operations after non-controlling interest (8,880 ) (264,861 ) 117,010 Net (loss) income attributable to the Company (8,880 ) (264,861 ) 117,010 (in thousands) 2018 2017 2016 Weighted average number of ordinary shares 169,810 169,809 156,973 2018 2017 2016 Cash dividends per share declared $0.00 $0.30 $1.05 |
OTHER OPERATING (LOSSES) GAINS
OTHER OPERATING (LOSSES) GAINS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
GAIN ON SALE OF ASSETS AND AMORTIZATION OF DEFERRED GAINS [Abstract] | |
GAIN ON SALE OF ASSETS AND AMORTIZATION OF DEFERRED GAINS | (in thousands of $) 2018 2017 2016 Gain (loss) on cancellation of newbuilding contracts — — (2,772 ) Gain (loss) on lease termination 10,324 2,379 89 Gain (loss) on pool arrangements (118 ) 2 — 10,206 2,381 (2,683 ) |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Future minimum rental payments | The future minimum rental payments under the Company's non-cancellable operating leases are as follows: (in thousands of $) 2019 17,348 2020 6,682 2021 550 2022 181 2023 41 Thereafter — 24,802 |
Schedule of minimum future revenues on bareboat charters | minimum future revenues to be received under these 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 T |
INVESTMENT IN FINANCE LEASE (Ta
INVESTMENT IN FINANCE LEASE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
INVESTMENT IN FINANCE LEASE [Abstract] | |
Components of investments in sales-type leases | The components of the investment in the sales-type lease may be summarized as follows: (in thousands of $) 2018 2017 Net minimum lease payments receivable 11,651 22,070 Estimated residual values of leased property (unguaranteed) 10,821 10,821 Less: finance lease interest income (690 ) (1,983 ) Total investment in sales-type lease 21,782 30,908 Current portion 10,803 9,126 Long-term portion 10,979 21,782 21,782 30,908 |
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, 2018 are as follows: (in thousands of $) 2019 11,493 2020 158 2021 — 2022 — 2023 — Thereafter — 11,651 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Marketable Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | 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 $) 2018 2017 Balance at start of the year 19,231 8,428 Repurchase of marketable securities pledged to creditors 10,272 — Shares acquired — 46,100 Shares disposed of (16,749 ) (26,351 ) Unrealized gain (loss) recorded in income statement (3,526 ) — Unrealized gain (loss) recorded in other comprehensive income — 1,326 Marketable securities reclassified as pledged to creditors (8,392 ) (10,272 ) Total 836 19,231 |
TRADE ACCOUNTS RECEIVABLE, NET
TRADE ACCOUNTS RECEIVABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 is summarized as follows; (in thousands of $) Balance at December 31, 2015 1,678 Additions charged to income 4,492 Balance at December 31, 2016 6,170 Deductions credited to income (172 ) Balance at December 31, 2017 5,998 Deductions credited to income (203 ) Balance at December 31, 2018 5,795 |
OTHER RECEIVABLES (Tables)
OTHER RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
OTHER RECEIVABLES [Abstract] | |
Schedule of Other Receivables | (in thousands of $) 2018 2017 Claims receivable 9,690 5,857 Agent receivables 3,733 3,518 Other receivables 3,645 7,919 17,068 17,294 |
NEWBUILDINGS (Tables)
NEWBUILDINGS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
NEWBUILDINGS [Abstract] | |
Summary roll forward of new build information | Movements in the three years ended December 31, 2018 may be summarized as follows: (in thousands of $) Balance at December 31, 2015 266,233 Additions, net, continuing basis 614,116 Transfer to Vessels and equipment, net (532,766 ) Interest capitalized, continuing basis 6,994 Cancellations (46,253 ) 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 |
Newbuildings transfered to vessels and equipment [Table Text Block] | The following table sets forth certain details of our newbuildings delivered in the years ended December 31, 2018 and December 31, 2017: (in thousands of $) Vessel name Vessel type Date of delivery 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 |
VESSELS AND EQUIPMENT (Tables)
VESSELS AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Summary Rollforward of Vessels and equipment | Movements in the three years ended December 31, 2018 may be summarized as follows: (in thousands of $) Cost Accumulated Depreciation Net Carrying Value Balance at December 31, 2015 1,311,544 (122,346 ) 1,189,198 Transfers from Newbuildings 532,766 — Additions 215 — Depreciation — (53,369 ) Impairment loss (36,311 ) 18,099 Disposals (173,203 ) — Balance at December 31, 2016 1,635,011 (157,616 ) 1,477,395 Depreciation — (77,547 ) Additions 894 — Transfers from Newbuildings 941,388 — 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 |
VESSELS UNDER CAPITAL LEASE, _2
VESSELS UNDER CAPITAL LEASE, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
vessels under capital leases terminated [Line Items] | |
vessels under capital leases terminated [Table Text Block] | The following table sets forth certain details of vessel lease terminations in the years ended December 31, 2018, December 31, 2017 and December 31, 2016: (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 Front Vanguard 2016 May 2016 July 2016 (293 ) 89 Vessels terminated in 2016 (293 ) 89 |
Schedule of book value of vessels | Movements in the three years ended December 31, 2018 may be summarized as follows: (in thousands of $) Cost Accumulated Depreciation Net Carrying Value Balance at December 31, 2015 706,219 (11,993 ) 694,226 Impairment loss (63,958 ) 20,478 Lease termination (34,812 ) 8,173 Depreciation — (87,674 ) 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 |
Schedule of future minimum lease payments for capital leases | The outstanding obligations under capital leases as of December 31, 2018 are payable as follows: (in thousands of $) 2019 18,795 2020 17,606 2021 17,557 2022 16,419 2023 17,557 Thereafter 42,387 Minimum lease payments 130,321 Less: imputed interest (30,537 ) Present value of obligations under capital leases 99,784 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accrued expenses | (in thousands of $) 2018 2017 Voyage expenses 15,934 20,918 Ship operating expenses 7,879 6,758 Administrative expenses 2,365 1,867 Interest expense 9,914 6,297 Taxes 727 739 Drydocking expenses — 1,989 Other 212 241 37,031 38,809 |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | (in thousands of $) 2018 2017 Deferred charter revenue 304 1,653 Other 3,600 4,414 3,904 6,067 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Instrument [Line Items] | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | Deferred charges (in thousands of $) 2018 2017 Debt arrangement fees 17,490 17,490 Accumulated amortization (7,710 ) (5,230 ) 9,780 12,260 |
Long-term debt | (in thousands of $) 2018 2017 U.S. dollar denominated floating rate debt $500.1 million term loan facility 385,792 423,894 $60.6 million term loan facility 47,594 51,062 $466.5 million term loan facility 281,273 297,794 $109.2 million term loan facility 96,353 102,776 $328.4 million term loan facility 246,079 261,354 $321.6 million term loan facility 260,108 246,531 $110.5 million term loan facility (ING) 51,413 54,483 $110.5 million term loan facility (Credit Suisse) 103,747 54,162 $110.5 million term loan facility (Credit Suisse #2) 52,636 — Total U.S. dollar floating rate 1,524,995 1,492,056 U.S. dollar denominated fixed rate debt $275.0 million revolving credit facility 186,000 90,000 Total U.S. dollar fixed rate 186,000 90,000 Credit facilities 32 42 Secured borrowings 7,631 10,312 Promissory notes 21,894 — Total debt 1,740,552 1,592,410 Short term debt and current portion of long term debt 120,479 113,076 Deferred charges 9,780 12,260 Long term portion of debt 1,610,293 1,467,074 |
Assets pledged | Assets pledged (in thousands of $) 2018 2017 Vessels, net 2,475,649 2,341,069 |
Debt repayment schedule | The outstanding debt as of December 31, 2018 is repayable as follows: (in thousands of $) 2019 120,479 2020 608,569 2021 429,908 2022 48,788 2023 158,200 Thereafter 374,608 1,740,552 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | 22. DEBT (in thousands of $) 2018 2017 U.S. dollar denominated floating rate debt $500.1 million term loan facility 385,792 423,894 $60.6 million term loan facility 47,594 51,062 $466.5 million term loan facility 281,273 297,794 $109.2 million term loan facility 96,353 102,776 $328.4 million term loan facility 246,079 261,354 $321.6 million term loan facility 260,108 246,531 $110.5 million term loan facility (ING) 51,413 54,483 $110.5 million term loan facility (Credit Suisse) 103,747 54,162 $110.5 million term loan facility (Credit Suisse #2) 52,636 — Total U.S. dollar floating rate 1,524,995 1,492,056 U.S. dollar denominated fixed rate debt $275.0 million revolving credit facility 186,000 90,000 Total U.S. dollar fixed rate 186,000 90,000 Credit facilities 32 42 Secured borrowings 7,631 10,312 Promissory notes 21,894 — Total debt 1,740,552 1,592,410 Short term debt and current portion of long term debt 120,479 113,076 Deferred charges 9,780 12,260 Long term portion of debt 1,610,293 1,467,074 The outstanding debt as of December 31, 2018 is repayable as follows: (in thousands of $) 2019 120,479 2020 608,569 2021 429,908 2022 48,788 2023 158,200 Thereafter 374,608 1,740,552 $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, 2018 . $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 second hand 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 $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, 2018 . $500.1 million term loan facility In December 2015, subsidiaries of the Company signed a new $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 $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, 2018 . $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 drew down $155.0 million in the year ended December 31, 2018 and up to $89.0 million remains available and undrawn as at year end. In November 2018 the Company extended the terms of the facility by 12 months. Following the extension, the facility is repayable in November 2020. The balance outstanding is included in long-term debt as at December 31, 2018. $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, 2018 . $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, 2018 . $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. During 2018, the Company drew down $54.9 million in connection with one VLCC delivered in the period. The facility is fully drawn down as of December 31, 2018 . $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. This facility will be used to part finance eight of our newbuildings and will be secured by four Suezmax tankers and three LR2/Aframax tankers delivered in the year, and an LR2/Aframax newbuilding being delivered in 2018. The Company drew down $252.7 million in the year ended December 31, 2017 in connection with four Suezmax tankers and three LR2/Aframax tanker delivered in the period. During 2018, the Company drew down $32.0 million in connection with one LR2 tanker delivered in the period. The facility is fully drawn down as of December 31, 2018 . $110.5 million term loan facility (Credit Suisse) 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 facility will be used to partially finance two VLCC resales and newbuilding contracts and will be secured by one VLCC delivered in the period and one VLCC newbuilding being delivered in 2019. During 2018, the Company drew down $54.9 million in connection with one VLCC delivered in the period. Up to $55.3 million remains available and undrawn as at year end. $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 facility will be used to partially finance two of our recent VLCC resales and newbuilding contracts and will be secured by one VLCC delivered in the year ended December 31, 2017 and one VLCC newbuilding being delivered in 2019. The Company drew down $55.3 million in the year ended December 31, 2017 in connection with one VLCC delivered in the period. Up to $55.3 million remains available and undrawn as at year end. Promissory notes The sum of $21.9 million in relation to the promissory notes payable to Ship Finance, 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 17 of these Consolidated Financial Statements for further details. Secured borrowings In December 2017, the Company sold 1.3 million shares of Golden Ocean, for total proceeds of $10.1 million . At the same time, the Company entered into a forward contract to repurchase 1.3 million shares of Golden Ocean in March 2018 for $10.3 million . The transaction has been accounted for as a secured borrowing, with the shares transferred to 'Marketable securities pledged to creditors' and a liability recorded at December 31, 2017 within debt for $10.3 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. As at December 31, 2017, 442,384 shares in Avance Gas were held as collateral with the remaining balance being paid to the counterparty as cash collateral in January 2018. 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 transferred to 'Marketable securities pledged to creditors' and a liability recorded at December 31, 2018 within 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 with the remaining balance being paid to the counterparty as cash collateral in January 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 contains 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 $37.9 million (2017: $74.0 million ), which represents 50% (2017: 100% ) of the cash required to be maintained by the financial covenants in our loan agreements. The Company is permitted to satisfy up to 50% of the cash requirement by maintaining a committed undrawn credit facility with a remaining availability of greater than 12 months. 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, 2018 . Assets pledged (in thousands of $) 2018 2017 Vessels, net 2,475,649 2,341,069 Deferred charges (in thousands of $) 2018 2017 Debt arrangement fees 17,490 17,490 Accumulated amortization (7,710 ) (5,230 ) 9,780 12,260 During 2018, the Company paid $0.01 million (2017: $3.5 million ) with respect to debt arrangement fees. |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 ; Outstanding shares at December 31, 2016 169,809,324 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 |
SHARE OPTIONS (Tables)
SHARE OPTIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Valuation Assumptions | The fair value of the newly granted option awards is 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, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Derivative Instruments | The interest rate swaps are not designated as hedges and are summarized as at December 31, 2018 as follows: Notional Amount Inception Date Maturity Date Fixed Interest Rate ($000s) 14,408 June 2013 June 2020 1.4025 % 42,951 September 2013 September 2020 1.5035 % 72,939 December 2013 December 2020 1.6015 % 14,062 March 2014 March 2021 1.6998 % 14,405 June 2014 June 2021 1.7995 % 14,748 September 2014 September 2021 1.9070 % 150,000 February 2016 February 2026 2.1970 % 323,513 |
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, 2018 and 2017 are as follows: 2018 2017 (in thousands of $) Carrying Value Fair Value Carrying Value Fair Value Assets: Cash and cash equivalents 66,484 66,484 104,145 104,145 Restricted cash 1,420 1,420 741 741 Liabilities: Floating rate debt 1,525,028 1,525,028 1,492,099 1,492,099 Fixed rate debt 215,524 212,696 100,312 99,865 |
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 $) 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 (in thousands of $) 2017 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents 104,145 104,145 — — Restricted cash 741 741 — — Liabilities: Floating rate debt 1,492,099 — 1,492,099 — Fixed rate debt 99,865 — 10,312 89,553 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of leasing transactions with Ship Finance | A summary of leasing transactions with Ship Finance in the years ended December 31, 2018 , 2017 and 2016 are as follows; (in thousands of $) 2018 2017 2016 Charter hire paid (principal and interest) 47,324 75,055 93,545 Lease termination receipt — — — Lease termination payments (22,391 ) (19,006 ) (293 ) Lease interest expense 16,400 25,980 35,417 Contingent rental income (19,738 ) (26,148 ) (18,621 ) Remaining lease obligation 99,784 299,016 422,600 |
Schedule of net amounts earned (incurred) from related parties excluding Ship Finance | A summary of net amounts earned (incurred) from related parties for the years ended December 31, 2018 , 2017 and 2016 are as follows: (in thousands of $) 2018 2017 2016 Seatankers Management Co. Ltd 7,152 3,420 6,057 Ship Finance International Limited 2,001 3,473 1,552 Golden Ocean Group Limited 7,138 6,671 9,387 Seatankers Management Norway AS 735 767 919 Arcadia Petroleum Limited — — 929 Seadrill Limited 279 470 656 Archer Limited 317 238 235 Flex LNG Limited 1,788 4,432 1,204 Deep Sea Supply Plc 43 67 130 North Atlantic Drilling Ltd 29 37 48 Northern Drilling Ltd 43 — — Other related parties 15 — — |
Schedule of related party receivables | A summary of balances due from related parties at December 31, 2018 and 2017 is as follows: (in thousands of $) 2018 2017 Ship Finance International Limited 1,653 1,239 Seatankers Management Co. Ltd 2,657 52 Archer Ltd 173 88 VLCC Chartering Ltd 81 81 Golden Ocean Group Limited 2,370 1,953 Seadrill Limited 538 489 Deep Sea Supply Plc 68 68 Arcadia Petroleum Limited — — Flex LNG Limited 210 979 North Atlantic Drilling Ltd 116 103 Other related parties 29 16 7,895 5,068 |
Schedule of Related Party Payables | A summary of balances due to related parties at December 31, 2018 and 2017 is as follows: (in thousands of $) 2018 2017 Ship Finance International Limited 8,886 6,349 Seatankers Management Co. Ltd 3,236 1,345 Golden Ocean Group Limited 5,558 1,227 Flex LNG Limited 1,058 — 18,738 8,921 |
GENERAL (Details)
GENERAL (Details) T in Thousands, dwt in Millions, $ in Millions | Feb. 03, 2016 | Jan. 31, 2019vessel | Mar. 03, 2016 | Jun. 30, 2019vessel | Mar. 31, 2018vessel | Sep. 30, 2017vessel | Dec. 31, 2018vesseltanker_sizeTdwt | Dec. 31, 2016vesseltanker | Dec. 31, 2017vessel | Nov. 30, 2015USD ($)shares |
Related Party Transaction [Line Items] | ||||||||||
Reverse stock split, conversion ratio | 0.2 | 5 | 5 | |||||||
Share exchange ratio in reverse acquisition | shares | 2.55 | |||||||||
Number of sizes of oil tankers | tanker_size | 2 | |||||||||
Lower range of VLCC tanker size (in dry weight tonnage) | T | 200 | |||||||||
Upper range of VLCC tanker size ((in dry weight tonnage) | T | 320 | |||||||||
Lower range of Suezmax tanker size (in dry weight tonnage) | T | 120 | |||||||||
Upper range of Suezmax tanker size (in dry weight tonnage) | T | 170 | |||||||||
Lower range of LR2 tanker size (in dry weight tonnage) | T | 111 | |||||||||
Upper range of LR2 tanker size (in dry weight tonnage) | T | 115 | |||||||||
Number of vessels in fleet | 61 | |||||||||
Aggregate Vessel Capacity | dwt | 11.6 | |||||||||
Number of vessels owned | 46 | |||||||||
Number of vessels owned, VLCCs | 12 | |||||||||
Number of vessels owned, Suezmax tankers | 16 | 6 | ||||||||
Number of Vessels Owned, Product Tankers | 18 | |||||||||
Number of vessels under capital leases | 3 | 9 | ||||||||
Number of vessels recorded as investment in finance lease, VLCCs | 1 | |||||||||
Number of vessels under commercial management | 9 | |||||||||
Number of vessels under commercial management, Suezmax tankers | 2 | |||||||||
Number of Vessels Under Commercial Management, LR2 | 2 | |||||||||
Number of vessels under commercial management, product/crude oil tankers | 2 | |||||||||
Number of newbuild vessels | 2 | |||||||||
Aggregate Newbuild Capacity | dwt | 0.6 | |||||||||
VLCC Vessels [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Number of vessels owned | 18 | |||||||||
number of vessels with an equal cost/revenue split | 2 | |||||||||
Number of vessels under commercial management | 3 | |||||||||
Number of newbuild vessels | 2 | 3 | 4 | |||||||
number of newbuilding vessels delivered | 1 | 1 | 1 | |||||||
Reverse acquisition [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Number of shares held by existing shareholders to qualify for reverse acquisition | shares | 1 | |||||||||
Common stock, shares, issued as merger consideration | shares | 583,600,000 | |||||||||
Common stock, shares, outstanding in Frontline 2012 prior to reverse acquisition and reverse stock split | shares | 249,100,000 | |||||||||
Treasury stock (in shares) | $ | $ 6.8 | |||||||||
Common stock, shares, outstanding that the Company owns in Frontline 2012 prior to merger | shares | 13,460,000 | |||||||||
Scenario, Forecast | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
number of newbuilding vessels delivered | 1 | 1 |
ACCOUNTING POLICIES (Details)
ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2018reporting_unitrecycling_market | |
Property, Plant and Equipment [Line Items] | |
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 [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated remaining economic useful life | 25 years |
Property, Plant and Equipment, Other Types [Member] | |
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% |
ACCOUNTING POLICIES - Adjustmen
ACCOUNTING POLICIES - Adjustments for ASC 606 (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Assets | |||
Voyages in progress | $ 59,437 | $ 17,951 | $ 38,254 |
Other current assets | 5,359 | 3,084 | 13 |
Liabilities | |||
Accrued expenses | 37,031 | 38,208 | 38,809 |
Equity | |||
Accumulated deficit | (295,118) | $ (289,134) | (272,503) |
Balance without ASC 606 | |||
Assets | |||
Voyages in progress | 91,287 | 38,254 | |
Other current assets | (51) | 13 | |
Liabilities | |||
Accrued expenses | 37,990 | 38,809 | |
Equity | |||
Accumulated deficit | (269,637) | (272,503) | |
Adjustments for ASC 606 | |||
Assets | |||
Voyages in progress | (31,850) | (20,303) | |
Other current assets | 5,410 | 3,071 | |
Liabilities | |||
Accrued expenses | (959) | (601) | |
Equity | |||
Accumulated deficit | $ (25,481) | $ (16,631) |
RECENT ACCOUNTING PRONOUNCEME_3
RECENT ACCOUNTING PRONOUNCEMENTS Accounting Pronouncements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Jan. 01, 2019 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Capitalized Contract Cost, Amortization | $ 3,100 | ||||
Retained Earnings (Accumulated Deficit) | 295,118 | $ 289,134 | $ 272,503 | ||
Equity Securities, FV-NI, Realized Gain (Loss) | 3,500 | ||||
Restricted cash | 1,400 | 700 | $ 700 | ||
Adjustments for ASC 606 | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Retained Earnings (Accumulated Deficit) | 25,481 | 16,631 | |||
Balance without ASC 606 | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Capitalized Contract Cost, Gross | 9,100 | ||||
Amortization of load port and discharge port | 3,700 | ||||
Capitalized Contract Cost, Net | 5,400 | ||||
Retained Earnings (Accumulated Deficit) | 269,637 | $ 272,503 | |||
Accounting Standards Update 2016-01 | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Retained Earnings (Accumulated Deficit) | $ (2,900) | ||||
Minimum | Subsequent Event | Scenario, Forecast | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Right-of-use asset | $ 15,000 | ||||
Lease liability | 15,000 | ||||
Maximum | Subsequent Event | Scenario, Forecast | |||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||
Right-of-use asset | 28,000 | ||||
Lease liability | $ 28,000 |
RECENT ACCOUNTING PRONOUNCEME_4
RECENT ACCOUNTING PRONOUNCEMENTS Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Voyages in progress | $ 59,437 | $ 17,951 | $ 38,254 |
Other current assets | 5,359 | 3,084 | 13 |
Accrued expenses | 37,031 | 38,208 | 38,809 |
Retained (deficit) earnings | (295,118) | $ (289,134) | (272,503) |
Balance without ASC 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Voyages in progress | 91,287 | 38,254 | |
Other current assets | (51) | 13 | |
Accrued expenses | 37,990 | 38,809 | |
Retained (deficit) earnings | (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) earnings | $ (25,481) | $ (16,631) |
RECENT ACCOUNTING PRONOUNCEME_5
RECENT ACCOUNTING PRONOUNCEMENTS Condensed Consolidated Statement of Financial Position (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Voyages in progress | $ 59,437 | $ 17,951 | $ 38,254 |
Current assets | 5,359 | 3,084 | 13 |
Accrued expenses | 37,031 | 38,208 | 38,809 |
Retained (deficit) earnings | (295,118) | $ (289,134) | (272,503) |
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) earnings | (25,481) | (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 | (51) | 13 | |
Accrued expenses | 37,990 | 38,809 | |
Retained (deficit) earnings | $ (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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Voyage charter revenues | $ 690,901 | $ 518,156 | $ 502,284 |
Voyage expenses and commission | 377,772 | 259,334 | 161,641 |
Net income (loss) | (8,398) | (264,322) | 117,514 |
Net (loss) income | $ 82,711 | $ (196,271) | $ 177,481 |
Basic and diluted earnings per share attributable to the Company (in dollars per share) | $ (0.05) | $ (1.56) | $ 0.75 |
Adjustments for ASC 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Voyage charter revenues | $ (11,548) | ||
Voyage expenses and commission | (2,698) | ||
Net income (loss) | (8,850) | ||
Net (loss) income | $ (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 charter revenues | $ 702,449 | ||
Voyage expenses and commission | 380,470 | ||
Net income (loss) | 452 | ||
Net (loss) income | $ 452 | ||
Basic and diluted earnings per share attributable to the Company (in dollars per share) | $ 0 |
RECENT ACCOUNTING PRONOUNCEME_7
RECENT ACCOUNTING PRONOUNCEMENTS Condensed Consolidated Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Net income (loss) | $ (8,398) | $ (264,322) | $ 117,514 |
Change in operating assets and liabilities | (38,695) | ||
Net cash provided by operating activities | 46,171 | $ 130,485 | $ 286,015 |
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) $ / shares in Units, $ in Thousands | Feb. 03, 2016 | Mar. 03, 2016 | Dec. 31, 2017USD ($)Rate$ / shares | Nov. 30, 2015USD ($)$ / shares | Dec. 31, 2018USD ($)reporting_unit | Dec. 31, 2017USD ($)Rate$ / shares | Dec. 31, 2016USD ($) |
Goodwill [Roll Forward] | |||||||
Goodwill, beginning balance | $ 225,273 | $ 225,273 | |||||
Accumulated impairment losses, beginning balance | (112,821) | 0 | |||||
Goodwill, ending balance | $ 225,273 | 225,273 | 225,273 | $ 225,273 | |||
Net carrying value, beginning balance | 112,452 | 225,273 | |||||
Impairment charge - acc. impairment loss | (112,821) | ||||||
Accumulated impairment losses, ending balance | (112,821) | (112,821) | (112,821) | 0 | |||
Net carrying value, ending balance | $ 112,452 | $ 112,452 | $ 112,452 | $ 225,273 | |||
Share price (in dollars per share) | $ / shares | $ 15.15 | ||||||
Reverse stock split, conversion ratio | 0.2 | 5 | 5 | ||||
Acquired on the Merger | $ 225,273 | ||||||
Number of reporting units | reporting_unit | 1 | ||||||
share price decrease/increase movement | $ / shares | $ 1.45 | $ 1.45 | |||||
share price movement since impairment testing date | Rate | 24.00% | 24.00% | |||||
market capitalization | $ 779,000 | $ 779,000 | |||||
Share price (in dollars per share) | $ / shares | $ 4.59 | $ 4.59 | |||||
fair value of company | $ 1,013,000 | $ 1,013,000 | |||||
carrying value of company | 1,300,000 | 1,300,000 | |||||
estimate fair value of assets/liabilities | 901,000 | 901,000 | |||||
implied fair value of goodwill | 112,500 | 112,500 | |||||
Impairment loss on goodwill | $ 112,800 | $ 0 | $ 112,821 | $ 0 | |||
Measurement Input, Control Premium [Member] | |||||||
Goodwill [Roll Forward] | |||||||
Fair Value Inputs, Control Premium | Rate | 0.30 | 0.30 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)segmentcustomer | Dec. 31, 2017customer | Dec. 31, 2016USD ($)customer | |
Revenue from External Customer [Line Items] | |||
Number of reportable segments | segment | 1 | ||
Major Customer 1 [Member] | |||
Revenue from External Customer [Line Items] | |||
Number of major customers for revenue purposes | customer | 1 | 0 | 2 |
Maximum percentage consolidated operating revenues from individual major customers (in hundredths) | 10.00% | 10.00% | 10.00% |
Revenue from major customer | $ 81.1 | $ 117.8 | |
Major Customer 2 [Member] | |||
Revenue from External Customer [Line Items] | |||
Revenue from major customer | $ 78 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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 | $ 900 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) $ / shares in Units, $ in Thousands | Feb. 03, 2016 | Mar. 03, 2016 | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares |
Earnings Per Share [Abstract] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares | 1,317,000 | 1,170,000 | 1,170,000 | ||
Net (loss) income from continuing operations after non-controlling interest | $ | $ (8,880) | $ (264,861) | $ 117,010 | ||
Net (loss) income attributable to the Company | $ | $ (8,880) | $ (264,861) | $ 117,010 | ||
Weighted average shares outstanding, basic and diluted (in 000's) | shares | 169,810,000 | 169,809,000 | 156,973,000 | ||
Reverse stock split, conversion ratio | 0.2 | 5 | 5 | ||
Cash dividends per share declared | $ / shares | $ 0 | $ 0.30 | $ 1.05 |
OTHER OPERATING (LOSSES) GAIN_2
OTHER OPERATING (LOSSES) GAINS - Summary of Contracts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
GAIN ON SALE OF ASSETS AND AMORTIZATION OF DEFERRED GAINS [Abstract] | |||
Gain (loss) on cancellation of newbuilding contracts | $ 0 | $ 0 | $ (2,772) |
Gain (loss) on lease termination | 10,324 | 2,379 | 89 |
Gain (loss) on pool arrangements | (118) | 2 | 0 |
Other operating (losses) gains | $ 10,206 | $ 2,381 | $ (2,683) |
OTHER OPERATING (LOSSES) GAIN_3
OTHER OPERATING (LOSSES) GAINS - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Oct. 31, 2016contract | Jun. 30, 2016USD ($)contract | Sep. 30, 2016contract | Dec. 31, 2018USD ($)vessels | Dec. 31, 2017USD ($)vessels | Dec. 31, 2016USD ($)vessels | |
Property, Plant and Equipment [Line Items] | ||||||
Gain (loss) on cancellation of newbuilding contracts | $ 0 | $ 0 | $ (2,772) | |||
Gain (loss) on lease termination | 10,324 | 2,379 | 89 | |||
Gain (loss) on pool arrangements | (118) | 2 | 0 | |||
Gain (Loss) on Termination of Lease | 10,324 | 2,379 | 89 | |||
Ship Finance International Limited [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Gain (Loss) on Termination of Lease | $ 10,300 | $ 2,400 | ||||
VLCC Vessels [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Gain (loss) on lease termination | $ 2,800 | |||||
Number of newbuilding contracts terminated | contract | 4 | |||||
VLCC Vessels [Member] | Ship Finance International Limited [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
number of capital leased vessels terminated | vessels | 6 | 2 | 1 | |||
MR tanker [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Newbuildings sold to Avance Gas | contract | 6 | 5 | ||||
Proceeds from Sale of Property, Plant, and Equipment | $ 172,500 | |||||
Impairment loss | $ 18,200 | |||||
Suezmax Vessels [Member] | Ship Finance International Limited [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
number of capital leased vessels terminated | vessels | 2 |
LEASES (Details)
LEASES (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2015vessel | Dec. 31, 2014vessel | Sep. 30, 2018vessel | Dec. 31, 2018USD ($)vesselvessels | Dec. 31, 2017USD ($)vesselvessels | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||||||
2019 | $ 17,348 | ||||||
2020 | 6,682 | ||||||
2021 | 550 | ||||||
2022 | 181 | ||||||
2023 | 41 | ||||||
Thereafter | 0 | ||||||
Total future minimum rental payments | $ 24,802 | ||||||
Leases, Schedule of Leased Assets [Line Items] | |||||||
Total vessels leased in on long-term time charters | vessel | 3 | 9 | |||||
Total vessels leased in on short term time charter | vessels | 2 | 1 | |||||
Operating Leases, Rent Expense, Net | $ 23,200 | $ 21,200 | $ 71,800 | ||||
Profit share expense | $ 1,500 | $ 5,600 | 50,900 | ||||
Number of vessels leased out on fixed rate time charters | vessels | 1 | 6 | |||||
Number of vessels chartered out on index-linked charters | vessel | 2 | 0 | |||||
Percentage of third party charter revenues to be received as profit share income | 50.00% | ||||||
Operating Leases, Future Minimum Payments Receivable [Abstract] | |||||||
2019 | $ 7,037 | ||||||
2020 | 117 | ||||||
2021 | 0 | ||||||
2022 | 0 | ||||||
2023 | 0 | ||||||
Thereafter | 0 | ||||||
Total minimum lease revenues | 7,154 | ||||||
Assets Leased to Others [Member] | |||||||
Leases, Schedule of Leased Assets [Line Items] | |||||||
Cost of vessels | 158,800 | $ 294,100 | |||||
Accumulated depreciation of vessels | 12,300 | 44,900 | |||||
VLCC Vessels [Member] | oceanis [Member] [Member] | |||||||
Leases, Schedule of Leased Assets [Line Items] | |||||||
Profit share expense | 700 | $ 300 | |||||
Double Hull Suezmax [Member] | |||||||
Leases, Schedule of Leased Assets [Line Items] | |||||||
Number of vessels leased out on fixed rate time charters with profit sharing agreements | vessel | 2 | ||||||
Suezmax [Member] | |||||||
Leases, Schedule of Leased Assets [Line Items] | |||||||
Number of vessels leased out on fixed rate time charters with profit sharing agreements | vessel | 1 | ||||||
profit share income | 0 | 700 | |||||
Suezmax Vessels [Member] | |||||||
Leases, Schedule of Leased Assets [Line Items] | |||||||
Number of vessels chartered out on index-linked charters | vessel | 2 | ||||||
Revenue on index linked time charters | 2,700 | $ 7,100 | $ 27,700 | ||||
LR2 tanker [Member] | |||||||
Leases, Schedule of Leased Assets [Line Items] | |||||||
Number of vessels leased out on fixed rate time charters with profit sharing agreements | vessel | 1 | ||||||
Revenue on index linked time charters | $ 2,400 |
RESTRICTED CASH (Details)
RESTRICTED CASH (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)vesselRate | Dec. 31, 2017USD ($)vesselRate | |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash required to be maintained for covenant compliance | $ 37.9 | $ 74 |
Debt instrument, covenant compliance, cash required to be maintained, percentage | Rate | 50.00% | 100.00% |
Number of vessels under capital lease | vessel | 3 | 9 |
Cash buffer per vessel, covenant compliance | $ 2 | |
Ship Finance International Limited [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash buffer per vessel, covenant compliance | $ 2 | |
Cash surplus required for vessel leasing agreements | $ 3.5 | $ 8.9 |
INVESTMENT IN FINANCE LEASE (De
INVESTMENT IN FINANCE LEASE (Details) $ in Thousands | Dec. 31, 2018USD ($)vessel | Dec. 31, 2017USD ($)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 | $ 22,070 |
Estimated residual values of leased property (unguaranteed) | 10,821 | 10,821 |
Less: finance lease interest income | (690) | (1,983) |
Total investment in sales-type lease | 21,782 | 30,908 |
Current portion | 10,803 | 9,126 |
Long-term portion | 10,979 | 21,782 |
Total investment in sales-type lease | 21,782 | $ 30,908 |
Future minimum gross revenues [Abstract] | ||
2019 | 11,493 | |
2020 | 158 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
Thereafter | 0 | |
Total minimum lease revenues | $ 11,651 |
MARKETABLE SECURITIES (Details)
MARKETABLE SECURITIES (Details) $ in Thousands, kr in Millions | Feb. 03, 2016 | Mar. 03, 2016 | Dec. 31, 2018USD ($)shares | Sep. 30, 2018USD ($)shares | Jun. 30, 2018USD ($)shares | Mar. 31, 2018USD ($)shares | Mar. 31, 2017USD ($)shares | Mar. 31, 2016USD ($) | Dec. 31, 2018USD ($)shares | Dec. 31, 2018NOK (kr)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2017NOK (kr)shares | Dec. 31, 2016USD ($) | Dec. 31, 2018NOK (kr)shares | Dec. 31, 2017NOK (kr)shares |
Schedule of Equity Method Investments [Line Items] | |||||||||||||||
Proceeds from (Payments for) in Securities Sold under Agreements to Repurchase | $ 10,272 | $ 0 | |||||||||||||
Movement In Available-For-Sale Securities [Roll Forward] | |||||||||||||||
Balance at start of the year | $ 19,231 | $ 8,000 | 19,231 | 8,000 | |||||||||||
Unrealized loss on marketable securities | (3,526) | 0 | $ 0 | ||||||||||||
Unrealized gain (loss) recorded in other comprehensive income | 0 | 1,326 | |||||||||||||
Available-for-sale Securities, Restricted | $ (8,392) | (8,392) | (10,272) | ||||||||||||
Total | 836 | 836 | 19,231 | $ 8,000 | |||||||||||
Equity securities available-for-sale | |||||||||||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | (0.2) | (5) | (5) | ||||||||||||
Secured Debt, Repurchase Agreements | $ 7,700 | $ 11,900 | $ 11,400 | 10,400 | 7,700 | 10,300 | kr 66.9 | kr 85.2 | |||||||
Gain (loss) from marketable securities reclassified to Consolidated Statement of Operations | $ 0 | 571 | $ (7,233) | ||||||||||||
Golden Ocean Group Limited [Member] | |||||||||||||||
Equity securities available-for-sale | |||||||||||||||
Marketable Securities, Number Of Shares Held | shares | 1,300,000 | 1,300,000 | 1,300,000 | ||||||||||||
Golden Ocean [Member] | |||||||||||||||
Equity securities available-for-sale | |||||||||||||||
Unrealized Gain (Loss) on Investments | $ 2,508 | ||||||||||||||
DHT Holdings [Member] | |||||||||||||||
Equity securities available-for-sale | |||||||||||||||
Unrealized Gain (Loss) on Investments | 3,000 | ||||||||||||||
Proceeds from Sale and Maturity of Marketable Securities | 17,800 | 27,400 | |||||||||||||
Available for sale securities,number of equity securities acquired | shares | 10,900,000 | ||||||||||||||
Payments to Acquire Debt Securities, Available-for-sale | $ 46,100 | ||||||||||||||
Marketable Securities, Gain (Loss) | $ 1,000 | 1,100 | |||||||||||||
Gain (loss) from marketable securities reclassified to Consolidated Statement of Operations | $ 600 | ||||||||||||||
Marketable Securities, Number of Securities Disposed | shares | 4,700,000 | 4,700,000 | 6,200,000 | 6,200,000 | |||||||||||
Ship Finance International Limited [Member] | |||||||||||||||
Equity securities available-for-sale | |||||||||||||||
Unrealized Gain (Loss) on Investments | $ 365 | $ 50 | |||||||||||||
Marketable Securities, Number Of Shares Held | shares | 100,000 | 100,000 | 100,000 | 100,000 | 100,000 | ||||||||||
Avance Gas [Member] | |||||||||||||||
Equity securities available-for-sale | |||||||||||||||
Unrealized Gain (Loss) on Investments | $ 630 | $ 90 | |||||||||||||
Dividends [Domain] | |||||||||||||||
Movement In Available-For-Sale Securities [Roll Forward] | |||||||||||||||
Shares acquired | $ 0 | $ 46,100 | |||||||||||||
Avance Gas [Member] | |||||||||||||||
Movement In Available-For-Sale Securities [Roll Forward] | |||||||||||||||
Impairment loss | $ 4,900 | ||||||||||||||
Equity securities available-for-sale | |||||||||||||||
Shares received | shares | 442,384 | 442,384 | 442,384 | 442,384 | |||||||||||
Ship Finance International Limited [Member] | |||||||||||||||
Equity securities available-for-sale | |||||||||||||||
Shares received | shares | 73,383 | 73,383 | |||||||||||||
Golden Ocean [Member] | |||||||||||||||
Movement In Available-For-Sale Securities [Roll Forward] | |||||||||||||||
Impairment loss | $ 2,400 | ||||||||||||||
Available-for-sale Securities, Restricted | $ (7,600) | (11,900) | (11,200) | (10,300) | $ (7,600) | $ (10,100) | |||||||||
Equity securities available-for-sale | |||||||||||||||
Shares received | shares | 1,270,657 | 1,270,657 | |||||||||||||
Proceeds from Sale and Maturity of Marketable Securities | $ 7,700 | $ 11,800 | $ 11,200 | $ 10,400 | $ 7,700 | kr 66.4 | $ 10,100 | kr 84.8 | |||||||
number of marketable securities pledged to creditors | shares | 1,260,358 | 1,260,358 | 1,260,358 | ||||||||||||
Marketable Securities, Number of Securities Disposed | shares | 1,300,000 | 1,260,358 | 1,300,000 | 1,260,358 | 1,300,000 | 1,300,000 | 1,260,358 | 1,260,358 | |||||||
Reverse acquisition [Member] | |||||||||||||||
Movement In Available-For-Sale Securities [Roll Forward] | |||||||||||||||
Shares disposed of | $ (16,749) | $ (26,351) |
TRADE ACCOUNTS RECEIVABLE, NE_2
TRADE ACCOUNTS RECEIVABLE, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning balance | $ 5,998 | $ 6,170 | $ 1,678 |
Additions charged to income | (203) | (172) | 4,492 |
Ending balance | $ 5,795 | $ 5,998 | $ 6,170 |
OTHER RECEIVABLES (Details)
OTHER RECEIVABLES (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Contracts Receivable, Claims and Uncertain Amounts | $ 9,690 | $ 5,857 | ||
Other Receivables from Broker-Dealers and Clearing Organizations | 3,733 | 3,518 | ||
Other Receivables | 17,068 | 17,294 | ||
Allowance for doubtful accounts | 5,795 | 5,998 | $ 6,170 | $ 1,678 |
Other receivables | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Other Receivables | 3,645 | 7,919 | ||
Total Other Receivables [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for doubtful accounts | $ 0 | $ 0 |
NEWBUILDINGS (Details)
NEWBUILDINGS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Construction in Progress [Roll Forward] | |||
Balance, beginning of period | $ 79,602 | $ 308,324 | $ 266,233 |
Additions, net, continuing basis | 201,653 | 707,988 | 614,116 |
Transfer to Vessels and equipment, net | (230,596) | (941,388) | (532,766) |
Interest capitalized, continuing basis | 1,595 | 4,678 | 6,994 |
Cancellations | (46,253) | ||
Balance, end of period | $ 52,254 | $ 79,602 | $ 308,324 |
NEWBUILDINGS - Additional Infor
NEWBUILDINGS - Additional Information (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Apr. 30, 2017vesselnewbuild_option | Feb. 28, 2017USD ($)vessel | Dec. 31, 2014contract | Sep. 30, 2014contract | Jul. 31, 2014contract | May 31, 2014contract | Oct. 31, 2013contract | Aug. 31, 2013contract | Apr. 30, 2013contract | Jan. 31, 2013contract | Mar. 31, 2018vessel | Sep. 30, 2017vessel | Dec. 31, 2018vessel | Dec. 31, 2017vessel | Dec. 31, 2016vessel | Jun. 30, 2015contract | Mar. 31, 2015contract | Jan. 31, 2015contract | Dec. 04, 2013contract | Sep. 09, 2013contract | Feb. 01, 2013vessel | |
Property, Plant and Equipment [Line Items] | |||||||||||||||||||||
Number of newbuild vessels | 2 | ||||||||||||||||||||
VLCC Vessels [Member] | |||||||||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||||||||
Number of newbuild vessels | 2 | 4 | 3 | ||||||||||||||||||
Number of Newbuildings Delivered | 2 | ||||||||||||||||||||
Newbuilding contracts canceled | contract | 1 | 1 | 1 | 1 | |||||||||||||||||
Payments to acquire vessels | $ | $ 77.5 | ||||||||||||||||||||
number of newbuilding vessels delivered | 1 | 1 | 1 | ||||||||||||||||||
Number of newbuildings acquired | 2 | ||||||||||||||||||||
Number of newbuilding contracts acquired | 2 | ||||||||||||||||||||
Number Of Lapsed Newbuild Options | newbuild_option | 2 | ||||||||||||||||||||
Suezmax [Member] | |||||||||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||||||||
Number of newbuild vessels | 6 | ||||||||||||||||||||
LR2 tanker [Member] | |||||||||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||||||||
Number of newbuild vessels | 7 | ||||||||||||||||||||
Number of Newbuildings Delivered | 1 | ||||||||||||||||||||
MR tanker [Member] | |||||||||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||||||||
Number of newbuild vessels | 6 | 12 | |||||||||||||||||||
Newbuilding contracts canceled | contract | 1 | 1 | 1 | 1 | |||||||||||||||||
Newbuildings received | contract | 1 | 1 | |||||||||||||||||||
LR2 Tanker [Member] | |||||||||||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||||||||||
Number of newbuild vessels | 1 | ||||||||||||||||||||
Newbuildings received | contract | 1 | 1 | 1 | 1 |
VESSELS AND EQUIPMENT - Schedul
VESSELS AND EQUIPMENT - Schedule of Vessels and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Vessels and equipment [Roll Forward] | |||
Net Carry Value, beginning balance | $ 2,342,130 | ||
Disposals | $ 173,203 | ||
Depreciation | (122,566) | $ (141,748) | (141,043) |
Net Carry Value, ending balance | 2,476,755 | 2,342,130 | |
Vessels and Equipment [Member] | |||
Vessels and equipment [Roll Forward] | |||
Additions | 467 | 894 | |
Vessels and equipment [Member] | |||
Vessels and equipment [Roll Forward] | |||
Balance, beginning of period | 2,577,293 | 1,635,011 | 1,311,544 |
Accumulated Depreciation beginning balance | (235,163) | (157,616) | (122,346) |
Net Carry Value, beginning balance | 2,342,130 | 1,477,395 | 1,189,198 |
Additions | 215 | ||
Depreciation | (96,438) | (77,547) | (53,369) |
Balance, end of period | 2,808,356 | 2,577,293 | 1,635,011 |
Accumulated Depreciation ending balance | (331,601) | (235,163) | (157,616) |
Net Carry Value, ending balance | 2,476,755 | 2,342,130 | 1,477,395 |
Newbuildings [Member] | |||
Vessels and equipment [Roll Forward] | |||
Transfers from Newbuildings | $ 230,596 | $ 941,388 | 532,766 |
Impairment charge - asset cost [Member] | |||
Vessels and equipment [Roll Forward] | |||
Impairment loss | 36,311 | ||
Impairment charge - asset acc. deprecation [Member] | |||
Vessels and equipment [Roll Forward] | |||
Impairment loss | $ 18,099 |
VESSELS AND EQUIPMENT - Additio
VESSELS AND EQUIPMENT - Additional Information (Details) $ in Thousands | 1 Months Ended | 2 Months Ended | 12 Months Ended | |||
Jun. 30, 2016USD ($) | Jun. 30, 2016USD ($)vessel | Sep. 30, 2016vessel | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Property, Plant and Equipment [Line Items] | ||||||
Number of vessels delivered and sold | vessel | 5 | |||||
Impairment loss on vessels and vessels held under capital lease | $ 0 | $ 164,187 | $ 61,692 | |||
Property, Plant and Equipment, Disposals | (173,203) | |||||
MR tanker [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Proceeds from Sale of Property, Plant, and Equipment | $ 172,500 | |||||
Impairment loss on vessels and vessels held under capital lease | 18,200 | |||||
Vessels by Name [Member] | MR tanker [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Number Of Vessels Disposed Of | vessel | 6 | |||||
Proceeds from Sale of Property, Plant, and Equipment | $ 172,500 | |||||
Impairment charge - asset cost [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
impairment charge - Asset cost | (36,311) | |||||
Impairment charge - asset acc. deprecation [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Impairment loss | $ 18,099 |
VESSELS UNDER CAPITAL LEASE, _3
VESSELS UNDER CAPITAL LEASE, NET (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Leases, Schedule of Leased Assets [Line Items] | ||||||||
Interest expense | $ 16,400 | $ 26,000 | ||||||
Lease Termination Probability | 25.00% | 100.00% | 25.00% | |||||
Cash buffer per vessel, covenant compliance | 2,000 | |||||||
Movement In Capital Leased Assets, Gross [Roll Forward] | ||||||||
Impairment loss | 0 | (164,187) | $ (61,692) | |||||
Lease termination | (218,494) | (61,075) | (34,812) | |||||
Movement In Capital Leased Assets, Accumulated Depreciation [Roll Forward] | ||||||||
Impairment loss | 4,727 | |||||||
Lease termination | 83,601 | 23,192 | 8,173 | |||||
Cash held by Frontline Shipping Ltd | $ 8,900 | 3,500 | 8,900 | |||||
Assets Held under Capital Leases [Member] | ||||||||
Movement In Capital Leased Assets, Gross [Roll Forward] | ||||||||
Impairment loss | (187,379) | |||||||
Leased Vessels [Member] | ||||||||
Movement In Capital Leased Assets, Gross [Roll Forward] | ||||||||
Cost, beginning balance | $ 607,449 | 358,995 | 607,449 | 706,219 | ||||
Impairment loss | $ (63,958) | (63,958) | ||||||
Cost, ending balance | 358,995 | 607,449 | 140,501 | 358,995 | 607,449 | |||
Movement In Capital Leased Assets, Accumulated Depreciation [Roll Forward] | ||||||||
Accumulated depreciation, beginning balance | (71,016) | (107,297) | (71,016) | (11,993) | ||||
Impairment loss | 20,478 | 20,478 | ||||||
Depreciation | (26,129) | (64,200) | (87,674) | |||||
Accumulated depreciation, ending balance | (107,297) | (71,016) | (49,825) | (107,297) | (71,016) | |||
Net Carrying Value | 251,698 | 536,433 | $ 90,676 | 251,698 | $ 536,433 | $ 694,226 | ||
Ship Finance International Limited [Member] | ||||||||
Leases, Schedule of Leased Assets [Line Items] | ||||||||
Cash buffer per vessel, covenant compliance | $ 2,000 | |||||||
Movement In Capital Leased Assets, Accumulated Depreciation [Roll Forward] | ||||||||
Impairment of assets under capital lease | $ 142,900 | $ 21,200 | $ 27,300 |
VESSELS UNDER CAPITAL LEASE, _4
VESSELS UNDER CAPITAL LEASE, NET (Details 2) $ in Thousands | Dec. 31, 2018USD ($) |
Outstanding Obligations Under Capital Leases: [Abstract] | |
2018 | $ 18,795 |
2019 | 17,606 |
2020 | 17,557 |
2021 | 16,419 |
2022 | 17,557 |
Thereafter | 42,387 |
Minimum lease payments | 130,321 |
Less: imputed interest | (30,537) |
Present value of obligations under capital leases | $ 99,784 |
VESSELS UNDER CAPITAL LEASE, _5
VESSELS UNDER CAPITAL LEASE, NET (Details 3) shares in Millions | Feb. 03, 2016 | Oct. 31, 2018USD ($) | Jul. 31, 2018USD ($) | Feb. 28, 2018USD ($) | Aug. 31, 2017USD ($) | Jun. 30, 2017USD ($) | May 31, 2017USD ($) | Mar. 31, 2017USD ($) | Jul. 31, 2016USD ($) | Mar. 03, 2016 | May 31, 2015vessel | Dec. 31, 2018USD ($)vessel | Sep. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($)vesselvessels | Sep. 30, 2017vessel | Mar. 31, 2017USD ($)vesselsRate | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($)capital_lease | Dec. 31, 2018USD ($)vesselvessels | Dec. 31, 2017USD ($)vesselvessels | Dec. 31, 2016USD ($)vessels | Feb. 29, 2016shares | Jul. 01, 2015USD ($) |
Leases, Schedule of Leased Assets [Line Items] | ||||||||||||||||||||||||
Management fee income | $ 6,500 | |||||||||||||||||||||||
Reverse stock split, conversion ratio | 0.2 | 5 | 5 | |||||||||||||||||||||
Profit share expense percentage | 25.00% | |||||||||||||||||||||||
Cash buffer per vessel, covenant compliance | $ 2,000,000 | |||||||||||||||||||||||
Capital Lease Obligations | $ 99,800,000 | 99,800,000 | ||||||||||||||||||||||
Minimum contractual payments | 67,300,000 | 67,300,000 | ||||||||||||||||||||||
Contingent rental expense payable | $ 32,500,000 | 32,500,000 | ||||||||||||||||||||||
Profit share expense | 1,500,000 | $ 5,600,000 | $ 50,900,000 | |||||||||||||||||||||
Contingent rental income | 19,738,000 | 26,148,000 | 18,621,000 | |||||||||||||||||||||
Number of Leased Vessels Impaired | capital_lease | 3 | |||||||||||||||||||||||
Receipts (payments) resulting from lease terminations | (22,391,000) | (19,006,000) | ||||||||||||||||||||||
Lease Termination Probability | 25.00% | 100.00% | 25.00% | |||||||||||||||||||||
Gain (Loss) on Termination of Lease | $ 10,324,000 | $ 2,379,000 | $ 89,000 | |||||||||||||||||||||
Total vessels leased in on long-term time charters | vessel | 3 | 9 | 3 | 9 | ||||||||||||||||||||
Remaining periods on these leases, minimum (in years) | 6 years | |||||||||||||||||||||||
Remaining periods on these leases, maximum (in years) | 8 years | |||||||||||||||||||||||
Interest expense | $ 16,400,000 | $ 26,000,000 | ||||||||||||||||||||||
VLCC Vessels [Member] | ||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | ||||||||||||||||||||||||
Number of vessels whose lease was terminated | vessels | 6 | 2 | 1 | |||||||||||||||||||||
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 vessels whose lease was terminated | vessels | 2 | |||||||||||||||||||||||
Number of leases vessels with amended terms | vessel | 5 | |||||||||||||||||||||||
Daily hire payable | 15,000 | |||||||||||||||||||||||
Ship Finance Leased Vessels [Member] | ||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | ||||||||||||||||||||||||
Management fee income | $ 9,000 | |||||||||||||||||||||||
Impairment of assets under capital lease | $ 8,900,000 | |||||||||||||||||||||||
Total vessels leased in on long-term time charters | vessel | 3 | 9 | 3 | 9 | ||||||||||||||||||||
Ship Finance International Limited [Member] | ||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | ||||||||||||||||||||||||
Number of vessels whose lease was terminated | vessel | 3 | |||||||||||||||||||||||
Number of shares issued | shares | 11 | |||||||||||||||||||||||
Profit share expense percentage | 50.00% | |||||||||||||||||||||||
Cash buffer per vessel, covenant compliance | $ 2,000,000 | |||||||||||||||||||||||
Profit share expense | $ 1,535,000 | 5,600,000 | ||||||||||||||||||||||
Contingent rental income | $ (26,148,000) | (19,738,000) | (26,148,000) | $ (18,621,000) | ||||||||||||||||||||
Impairment of assets under capital lease | $ 142,900,000 | $ 21,200,000 | $ 27,300,000 | |||||||||||||||||||||
Number of Leased Vessels Impaired | vessels | 9 | 4 | ||||||||||||||||||||||
Gain (Loss) on Termination of Lease | $ 10,300,000 | 2,400,000 | ||||||||||||||||||||||
Front Circassia [Member] | Ship Finance International Limited [Member] | ||||||||||||||||||||||||
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) | 5,811,000 | ||||||||||||||||||||||
Front Page [Member] | Ship Finance International Limited [Member] | ||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | ||||||||||||||||||||||||
Gain (Loss) on Termination of Lease | $ 2,638,000 | |||||||||||||||||||||||
Front Stratus [Member] | Ship Finance International Limited [Member] | ||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | ||||||||||||||||||||||||
Gain (Loss) on Termination of Lease | $ 2,144,000 | |||||||||||||||||||||||
Front Serenade [Member] | Ship Finance International Limited [Member] | ||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | ||||||||||||||||||||||||
Gain (Loss) on Termination of Lease | 2,426,000 | |||||||||||||||||||||||
Front Ariake [Member] | Ship Finance International Limited [Member] | ||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | ||||||||||||||||||||||||
Interest rate notes | 7.50% | |||||||||||||||||||||||
Gain (Loss) on Termination of Lease | $ 3,523,000 | |||||||||||||||||||||||
Front Falcon [Member] | Ship Finance International Limited [Member] | ||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | ||||||||||||||||||||||||
Receipts (payments) resulting from lease terminations | 0 | |||||||||||||||||||||||
Gain (Loss) on Termination of Lease | 5,404,000 | |||||||||||||||||||||||
Front Vanguard [Member] | Ship Finance International Limited [Member] | ||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | ||||||||||||||||||||||||
Gain (Loss) on Termination of Lease | $ 89,000 | |||||||||||||||||||||||
Payments/Receipts resulting from lease terminations | (293,000) | (293,000) | ||||||||||||||||||||||
Front Century [Member] | Ship Finance Leased Vessels [Member] | ||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | ||||||||||||||||||||||||
Impairment of assets under capital lease | $ 5,600,000 | |||||||||||||||||||||||
Front Century [Member] | Ship Finance International Limited [Member] | ||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | ||||||||||||||||||||||||
Receipts (payments) resulting from lease terminations | $ (4,110,000) | |||||||||||||||||||||||
Gain (Loss) on Termination of Lease | $ 20,565,000 | |||||||||||||||||||||||
Front Scilla [Member] | Ship Finance International Limited [Member] | ||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | ||||||||||||||||||||||||
Receipts (payments) resulting from lease terminations | $ (6,465,000) | |||||||||||||||||||||||
Gain (Loss) on Termination of Lease | $ (7,341,000) | |||||||||||||||||||||||
Front Brabant [Member] | Ship Finance International Limited [Member] | ||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | ||||||||||||||||||||||||
Receipts (payments) resulting from lease terminations | $ (3,578,000) | |||||||||||||||||||||||
Gain (Loss) on Termination of Lease | $ (5,021,000) | |||||||||||||||||||||||
Front Ardenne [Member] | Ship Finance International Limited [Member] | ||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | ||||||||||||||||||||||||
Receipts (payments) resulting from lease terminations | $ (4,853,000) | |||||||||||||||||||||||
Gain (Loss) on Termination of Lease | $ (5,824,000) | |||||||||||||||||||||||
Front Page, Front Stratus, Front Serenade [Member] | Ship Finance International Limited [Member] | ||||||||||||||||||||||||
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 [Member] | Ship Finance International Limited [Member] | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | ||||||||||||||||||||||||
Contingent rental income | $ 21,273,000 | 26,148,000 | $ 18,621,000 | |||||||||||||||||||||
Receipts (payments) resulting from lease terminations | $ 0 | $ (19,006,000) | $ 0 | |||||||||||||||||||||
Non cash element | Front Circassia [Member] | Ship Finance International Limited [Member] | ||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | ||||||||||||||||||||||||
Receipts (payments) resulting from lease terminations | $ (8,891,000) | $ 8,891,000 | ||||||||||||||||||||||
Non cash element | Front Page [Member] | Ship Finance International Limited [Member] | ||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | ||||||||||||||||||||||||
Receipts (payments) resulting from lease terminations | $ (3,375,000) | |||||||||||||||||||||||
Non cash element | Front Stratus [Member] | Ship Finance International Limited [Member] | ||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | ||||||||||||||||||||||||
Receipts (payments) resulting from lease terminations | (3,375,000) | |||||||||||||||||||||||
Non cash element | Front Serenade [Member] | Ship Finance International Limited [Member] | ||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | ||||||||||||||||||||||||
Receipts (payments) resulting from lease terminations | (3,375,000) | |||||||||||||||||||||||
Non cash element | Front Ariake [Member] | Ship Finance International Limited [Member] | ||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | ||||||||||||||||||||||||
Receipts (payments) resulting from lease terminations | $ (3,375,000) | $ 3,375,000 | ||||||||||||||||||||||
Non cash element | Front Page, Front Stratus, Front Serenade [Member] | Ship Finance International Limited [Member] | ||||||||||||||||||||||||
Leases, Schedule of Leased Assets [Line Items] | ||||||||||||||||||||||||
Receipts (payments) resulting from lease terminations | $ 10,125,000 |
EQUITY METHOD INVESTMENTS (Deta
EQUITY METHOD INVESTMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | ||||
Ownsership interest in associate | 20.00% | |||
Investment in associated company | $ 6,000 | $ 6,000 | $ 0 | $ 0 |
Share of results in associated company | $ 246 | $ 0 | $ 0 |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | |||
Voyage expenses | $ 15,934 | $ 20,918 | |
Ship operating expenses | 7,879 | 6,758 | |
Administrative expenses | 2,365 | 1,867 | |
Interest expense | 9,914 | 6,297 | |
Taxes | 727 | 739 | |
Drydocking expenses | 0 | 1,989 | |
Other | 212 | 241 | |
Accrued expenses | $ 37,031 | $ 38,208 | $ 38,809 |
OTHER CURRENT LIABILITIES (Deta
OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Other Liabilities Disclosure [Abstract] | ||
Deferred charter revenue | $ 304 | $ 1,653 |
Other | 3,904 | 6,067 |
Total other current liabilities | $ 3,600 | $ 4,414 |
DEBT (Details)
DEBT (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Jul. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Aug. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||||||||||
Total debt | $ 1,740,552,000 | $ 1,592,410,000 | |||||||||
Total US Dollar floating rate debt | 1,524,995,000 | 1,492,056,000 | |||||||||
Long-term Line of Credit | 32,000 | 42,000 | |||||||||
Secured Borrowings, Gross Including Not Subject to Master Netting Arrangement | 7,631,000 | 10,312,000 | |||||||||
Notes Payable, Related Parties | 21,900,000 | ||||||||||
Long-term Debt, Current Maturities | 120,479,000 | 113,076,000 | |||||||||
Deferred finance costs, net | 9,780,000 | 12,260,000 | |||||||||
Long-term Debt, Excluding Current Maturities | 1,610,293,000 | 1,467,074,000 | |||||||||
Maturities of Long-term Debt [Abstract] | |||||||||||
2018 | 120,479,000 | ||||||||||
2019 | 608,569,000 | ||||||||||
2020 | 429,908,000 | ||||||||||
2021 | 48,788,000 | ||||||||||
2022 | 158,200,000 | ||||||||||
Thereafter | 374,608,000 | ||||||||||
Assets pledged [Abstract] | |||||||||||
Vessels, net | 2,476,755,000 | 2,342,130,000 | |||||||||
Vessels by Name [Member] | |||||||||||
Assets pledged [Abstract] | |||||||||||
Vessels, net | 2,475,649,000 | 2,341,069,000 | |||||||||
Term loan facility, $109.2 Million [Member] | |||||||||||
Assets pledged [Abstract] | |||||||||||
Debt Instrument, Increase (Decrease), Net | $ 54,600,000 | ||||||||||
Term loan facility $328.4 million [Member] | |||||||||||
Assets pledged [Abstract] | |||||||||||
Debt Instrument, Increase (Decrease), Net | 165,900,000 | ||||||||||
Term loan facility $321.6 million [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | 321,600,000 | ||||||||||
Term loan facility $110.5 million ING [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | 110,500,000 | 110,500,000 | |||||||||
Term loan facility $110.5 million CS 2 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | $ 110,500,000 | ||||||||||
Senior unsecured facility $275.0 million [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | $ 275,000,000 | ||||||||||
Assets pledged [Abstract] | |||||||||||
Debt Instrument, Increase (Decrease), Net | 155,000,000 | ||||||||||
Loans Payable [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt | 186,000,000 | 90,000,000 | |||||||||
Loans Payable [Member] | Term Loan Facility, $500.1 Million [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | $ 500,100,000 | $ 500,100,000 | |||||||||
Loans Payable [Member] | Term Loan Facility, $500.1 Million [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||
Assets pledged [Abstract] | |||||||||||
Basis spread on variable interest rate | 1.90% | ||||||||||
Loans Payable [Member] | Term Loan Facility, $60.6 Million [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | $ 60,600,000 | ||||||||||
Loans Payable [Member] | Term Loan Facility, $60.6 Million [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||
Assets pledged [Abstract] | |||||||||||
Basis spread on variable interest rate | 1.80% | ||||||||||
Loans Payable [Member] | Term Loan Facility, $466.5 Million [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | $ 466,500,000 | ||||||||||
Assets pledged [Abstract] | |||||||||||
Debt Instrument, Increase (Decrease), Net | $ 192,400,000 | $ 99,000,000 | |||||||||
Loans Payable [Member] | Term loan facility, $109.2 Million [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | $ 109,200,000 | ||||||||||
Loans Payable [Member] | Term loan facility, $109.2 Million [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||
Assets pledged [Abstract] | |||||||||||
Basis spread on variable interest rate | 1.90% | ||||||||||
Loans Payable [Member] | Term loan facility $328.4 million [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | $ 328,400,000 | ||||||||||
Assets pledged [Abstract] | |||||||||||
Debt Instrument, Increase (Decrease), Net | 109,000,000 | ||||||||||
Loans Payable [Member] | Term loan facility $321.6 million [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | 321,600,000 | ||||||||||
Assets pledged [Abstract] | |||||||||||
Debt Instrument, Increase (Decrease), Net | 32,000,000 | 252,700,000 | |||||||||
Loans Payable [Member] | Term loan facility $110.5 million ING [Member] | |||||||||||
Assets pledged [Abstract] | |||||||||||
Debt Instrument, Increase (Decrease), Net | $ 55,300,000 | ||||||||||
Loans Payable [Member] | Term loan facility $110.5 million ING [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||
Assets pledged [Abstract] | |||||||||||
Basis spread on variable interest rate | 1.90% | ||||||||||
Loans Payable [Member] | Term loan facility $110.5 million CS [Member] | |||||||||||
Assets pledged [Abstract] | |||||||||||
Debt Instrument, Increase (Decrease), Net | 54,900,000 | $ 54,900,000 | |||||||||
Loans Payable [Member] | Term loan facility $110.5 million CS 2 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount | $ 110,500,000 | ||||||||||
Assets pledged [Abstract] | |||||||||||
Debt Instrument, Increase (Decrease), Net | 54,900,000 | ||||||||||
Loans Payable [Member] | Term loan facility $110.5 million CS 2 [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||
Assets pledged [Abstract] | |||||||||||
Basis spread on variable interest rate | 1.90% | ||||||||||
Loans Payable [Member] | Senior unsecured facility $275.0 million [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt | 186,000,000 | $ 90,000,000 | |||||||||
Principal amount | 275,000,000 | $ 275,000,000 | |||||||||
US Dollar denominated floating rate debt [Member] | Term Loan Facility, $466.5 Million [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt | $ 466,500,000 | ||||||||||
US Dollar denominated floating rate debt [Member] | Loans Payable [Member] | Term Loan Facility, $500.1 Million [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt | 385,792,000 | 423,894,000 | |||||||||
Principal amount | 500,100,000 | ||||||||||
US Dollar denominated floating rate debt [Member] | Loans Payable [Member] | Term Loan Facility, $60.6 Million [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt | 47,594,000 | 51,062,000 | |||||||||
Principal amount | 60,600,000 | ||||||||||
US Dollar denominated floating rate debt [Member] | Loans Payable [Member] | Term Loan Facility, $466.5 Million [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt | 281,273,000 | 297,794,000 | |||||||||
Principal amount | 466,500,000 | ||||||||||
US Dollar denominated floating rate debt [Member] | Loans Payable [Member] | Term loan facility, $109.2 Million [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt | 96,353,000 | 102,776,000 | |||||||||
Principal amount | 109,200,000 | ||||||||||
US Dollar denominated floating rate debt [Member] | Loans Payable [Member] | Term loan facility $328.4 million [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt | 246,079,000 | 261,354,000 | |||||||||
Principal amount | 328,400,000 | ||||||||||
US Dollar denominated floating rate debt [Member] | Loans Payable [Member] | Term loan facility $321.6 million [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt | 260,108,000 | 246,531,000 | |||||||||
Principal amount | 321,600,000 | ||||||||||
US Dollar denominated floating rate debt [Member] | Loans Payable [Member] | Term loan facility $110.5 million ING [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt | 51,413,000 | 54,483,000 | |||||||||
Principal amount | 110,500,000 | ||||||||||
US Dollar denominated floating rate debt [Member] | Loans Payable [Member] | Term loan facility $110.5 million CS [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt | 103,747,000 | 54,162,000 | |||||||||
Principal amount | 110,500,000 | ||||||||||
US Dollar denominated floating rate debt [Member] | Loans Payable [Member] | Term loan facility $110.5 million CS 2 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Total debt | 52,636,000 | 0 | |||||||||
Ship Finance International Limited [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Notes Payable, Related Parties | $ 21,894,000 | $ 0 |
DEBT - Additional Information (
DEBT - Additional Information (Details) kr in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Jan. 31, 2019USD ($) | Jun. 30, 2017USD ($) | Feb. 28, 2017 | Dec. 31, 2016USD ($)tanker | Aug. 31, 2016USD ($) | Jul. 31, 2016USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Mar. 31, 2015USD ($)vesselRate | Dec. 31, 2014USD ($)tranch | Mar. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)vesselRateshares | Sep. 30, 2018USD ($)shares | Jun. 30, 2018USD ($)shares | Mar. 31, 2018USD ($)shares | Jun. 30, 2017USD ($)vesseltanker | Dec. 31, 2019tanker | Dec. 31, 2018USD ($)vesseltankerRateshares | Dec. 31, 2018NOK (kr)vesseltankerRateshares | Dec. 31, 2017USD ($)vesseltankerRateshares | Dec. 31, 2017NOK (kr)vesseltankershares | Dec. 31, 2016USD ($)vesseltanker | Dec. 31, 2015USD ($)vessel | Jun. 30, 2019USD ($) | Dec. 31, 2018NOK (kr)vesselRate | Dec. 31, 2017NOK (kr)Rate | |
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Secured Borrowings, Gross Including Not Subject to Master Netting Arrangement | $ 7,631,000 | $ 7,631,000 | $ 10,312,000 | |||||||||||||||||||||||
Number of second hand vessels | vessel | 2 | |||||||||||||||||||||||||
Number of VLCC vessels | tanker | 6 | 6 | ||||||||||||||||||||||||
Number of vessels owned, Suezmax tankers | 6 | 16 | 16 | 6 | 16 | |||||||||||||||||||||
Secured Debt, Repurchase Agreements | $ 7,700,000 | $ 11,900,000 | $ 11,400,000 | $ 10,400,000 | $ 7,700,000 | 10,300,000 | kr 66.9 | kr 85.2 | ||||||||||||||||||
Cash required to be maintained for covenant compliance | 37,900,000 | 37,900,000 | 74,000,000 | |||||||||||||||||||||||
loan arrangement fees | 10,000 | 3,500,000 | ||||||||||||||||||||||||
Debt arrangement fees | 17,490,000 | 17,490,000 | 17,490,000 | |||||||||||||||||||||||
Accumulated amortization | (7,710,000) | (7,710,000) | (5,230,000) | |||||||||||||||||||||||
Deferred finance costs, net | $ 9,780,000 | $ 9,780,000 | $ 12,260,000 | |||||||||||||||||||||||
Debt instrument, covenant compliance, cash required to be maintained, percentage | Rate | 50.00% | 50.00% | 100.00% | 50.00% | 100.00% | |||||||||||||||||||||
LR2 Tanker [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Number of tankers delivered | vessel | 6 | 3 | ||||||||||||||||||||||||
Term loan facility $110.5 million ING [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Principal amount | $ 110,500,000 | $ 110,500,000 | $ 110,500,000 | |||||||||||||||||||||||
Number of newbuild vessels financed by term loan facility | vessel | 2 | |||||||||||||||||||||||||
Senior unsecured facility $275.0 million [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Principal amount | $ 275,000,000 | |||||||||||||||||||||||||
Debt Instrument, Increase (Decrease), Net | $ 155,000,000 | |||||||||||||||||||||||||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 89,000,000 | $ 89,000,000 | ||||||||||||||||||||||||
Term loan facility $109.2 million [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Debt Instrument, Increase (Decrease), Net | $ 54,600,000 | |||||||||||||||||||||||||
Term loan facility $328.4 million [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Debt Instrument, Increase (Decrease), Net | 165,900,000 | |||||||||||||||||||||||||
Term loan facility $321.6 million [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Principal amount | 321,600,000 | $ 321,600,000 | ||||||||||||||||||||||||
Number of newbuild vessels financed by term loan facility | vessel | 8 | |||||||||||||||||||||||||
Term loan facility $110.5 million CS 2 [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Principal amount | $ 110,500,000 | $ 110,500,000 | ||||||||||||||||||||||||
Number of newbuild vessels financed by term loan facility | vessel | 2 | |||||||||||||||||||||||||
Loans Payable [Member] | Term loan facility $110.5 million ING [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Debt Instrument, Increase (Decrease), Net | 55,300,000 | |||||||||||||||||||||||||
Term of debt | 18 years | |||||||||||||||||||||||||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 55,300,000 | |||||||||||||||||||||||||
Loans Payable [Member] | Term loan facility $110.5 million ING [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Basis spread on variable interest rate | 1.90% | 1.90% | ||||||||||||||||||||||||
Loans Payable [Member] | Term Loan Facility, $466.5 Million [Member] | ||||||||||||||||||||||||||
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 [Member] | Term Loan Facility, $466.5 Million [Member] | MR tanker [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Periodic quarterly payment | $ 400,000 | |||||||||||||||||||||||||
Loans Payable [Member] | Term Loan Facility, $466.5 Million [Member] | LR2 Tanker [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Periodic quarterly payment | 400,000 | |||||||||||||||||||||||||
Loans Payable [Member] | Term loan facility $136.5 million [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Principal amount | $ 136,500,000 | |||||||||||||||||||||||||
Loans Payable [Member] | Term Loan Facility, $60.6 Million [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Principal amount | $ 60,600,000 | |||||||||||||||||||||||||
Periodic quarterly payment | $ 900,000 | |||||||||||||||||||||||||
Term of debt | 5 years | |||||||||||||||||||||||||
Loans Payable [Member] | Term Loan Facility, $60.6 Million [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Basis spread on variable interest rate | Rate | 1.80% | |||||||||||||||||||||||||
Loans Payable [Member] | Term Loan Facility, $500.1 Million [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Principal amount | $ 500,100,000 | $ 500,100,000 | ||||||||||||||||||||||||
Periodic quarterly payment | $ 9,500,000 | |||||||||||||||||||||||||
Loans Payable [Member] | Term Loan Facility, $500.1 Million [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Basis spread on variable interest rate | 1.90% | |||||||||||||||||||||||||
Loans Payable [Member] | Senior unsecured facility $275.0 million [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Principal amount | $ 275,000,000 | $ 275,000,000 | ||||||||||||||||||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 6.25% | |||||||||||||||||||||||||
loan availability period | 18 months | 12 months | 12 months | |||||||||||||||||||||||
loan repayable period | 18 months | |||||||||||||||||||||||||
Debt Instrument, Unused Borrowing Capacity, Amount | 89,000,000 | $ 89,000,000 | ||||||||||||||||||||||||
Loans Payable [Member] | Term loan facility $109.2 million [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Principal amount | $ 109,200,000 | |||||||||||||||||||||||||
Term of debt | 17 years | |||||||||||||||||||||||||
Loans Payable [Member] | Term loan facility $109.2 million [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Basis spread on variable interest rate | 1.90% | |||||||||||||||||||||||||
Loans Payable [Member] | Term loan facility $328.4 million [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Principal amount | $ 328,400,000 | |||||||||||||||||||||||||
Debt Instrument, Increase (Decrease), Net | 109,000,000 | |||||||||||||||||||||||||
Term of debt | 18 years | |||||||||||||||||||||||||
Loans Payable [Member] | Term loan facility $110.5 million [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Principal amount | $ 110,500,000 | $ 110,500,000 | ||||||||||||||||||||||||
Term of debt | 18 years | |||||||||||||||||||||||||
Loans Payable [Member] | Term loan facility $110.5 million [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Basis spread on variable interest rate | 1.90% | 1.90% | ||||||||||||||||||||||||
Loans Payable [Member] | Term loan facility $110.5 million CS [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Debt Instrument, Increase (Decrease), Net | 54,900,000 | $ 54,900,000 | ||||||||||||||||||||||||
Loans Payable [Member] | Term loan facility $321.6 million [Member] | ||||||||||||||||||||||||||
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 [Member] | Term loan facility $110.5 million CS 2 [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Principal amount | $ 110,500,000 | |||||||||||||||||||||||||
Debt Instrument, Increase (Decrease), Net | 54,900,000 | |||||||||||||||||||||||||
Term of debt | 18 years | |||||||||||||||||||||||||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 55,300,000 | $ 55,300,000 | ||||||||||||||||||||||||
Loans Payable [Member] | Term loan facility $110.5 million CS 2 [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Basis spread on variable interest rate | 1.90% | 1.90% | ||||||||||||||||||||||||
VLCC Vessels [Member] | Term loan facility $110.5 million ING [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Number of newbuild vessels financed by term loan facility | vessel | 1 | 1 | ||||||||||||||||||||||||
Number of vessels pledged as security on long-term debt instrument | tanker | 1 | 1 | ||||||||||||||||||||||||
VLCC Vessels [Member] | Term loan facility $109.2 million [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Number of newbuild vessels financed by term loan facility | vessel | 1 | |||||||||||||||||||||||||
VLCC Vessels [Member] | Term loan facility $110.5 million CS [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Number of newbuild vessels financed by term loan facility | vessel | 1 | 1 | 1 | 1 | ||||||||||||||||||||||
VLCC Vessels [Member] | Term loan facility $110.5 million CS 2 [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Number of newbuild vessels financed by term loan facility | vessel | 1 | 1 | ||||||||||||||||||||||||
Number of vessels pledged as security on long-term debt instrument | tanker | 1 | 1 | ||||||||||||||||||||||||
Suazmax Tankers [Member] | Loans Payable [Member] | Term loan facility $328.4 million [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Number of part-financed vessels - delivered | vessel | 2 | |||||||||||||||||||||||||
Suezmax Vessels [Member] | Term loan facility $328.4 million [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Number of newbuild vessels financed by term loan facility | vessel | 2 | 2 | ||||||||||||||||||||||||
LR2 tanker [Member] | Term loan facility $328.4 million [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Number of newbuild vessels financed by term loan facility | vessel | 3 | |||||||||||||||||||||||||
LR2 tanker [Member] | Term loan facility $321.6 million [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Number of newbuild vessels financed by term loan facility | tanker | 1 | 1 | ||||||||||||||||||||||||
Number of vessels pledged as security on long-term debt instrument | tanker | 3 | 3 | ||||||||||||||||||||||||
LR2 tanker [Member] | Loans Payable [Member] | Term loan facility $328.4 million [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Number of part-financed vessels - delivered | vessel | 1 | |||||||||||||||||||||||||
Suezmax [Member] | Term loan facility $321.6 million [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Number of vessels pledged as security on long-term debt instrument | tanker | 4 | |||||||||||||||||||||||||
US Dollar denominated floating rate debt [Member] | Loans Payable [Member] | Term loan facility $110.5 million ING [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Principal amount | $ 110,500,000 | |||||||||||||||||||||||||
US Dollar denominated floating rate debt [Member] | Loans Payable [Member] | Term Loan Facility, $466.5 Million [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Principal amount | 466,500,000 | |||||||||||||||||||||||||
US Dollar denominated floating rate debt [Member] | Loans Payable [Member] | Term Loan Facility, $60.6 Million [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Principal amount | 60,600,000 | |||||||||||||||||||||||||
US Dollar denominated floating rate debt [Member] | Loans Payable [Member] | Term Loan Facility, $500.1 Million [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Principal amount | 500,100,000 | |||||||||||||||||||||||||
US Dollar denominated floating rate debt [Member] | Loans Payable [Member] | Term loan facility $109.2 million [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Principal amount | 109,200,000 | |||||||||||||||||||||||||
US Dollar denominated floating rate debt [Member] | Loans Payable [Member] | Term loan facility $328.4 million [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Principal amount | 328,400,000 | |||||||||||||||||||||||||
US Dollar denominated floating rate debt [Member] | Loans Payable [Member] | Term loan facility $110.5 million CS [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Principal amount | 110,500,000 | |||||||||||||||||||||||||
US Dollar denominated floating rate debt [Member] | Loans Payable [Member] | Term loan facility $321.6 million [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Principal amount | $ 321,600,000 | |||||||||||||||||||||||||
Golden Ocean [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Marketable Securities, Number of Securities Disposed | shares | 1,300,000 | 1,260,358 | 1,300,000 | 1,260,358 | 1,300,000 | 1,300,000 | 1,260,358 | 1,260,358 | ||||||||||||||||||
Proceeds from Sale and Maturity of Marketable Securities | $ 7,700,000 | $ 11,800,000 | $ 11,200,000 | $ 10,400,000 | $ 7,700,000 | kr 66.4 | $ 10,100,000 | kr 84.8 | ||||||||||||||||||
Number of Marketable Securities | shares | 1,270,657 | 1,270,657 | ||||||||||||||||||||||||
Avance Gas [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Percentage of total repurchase price posted as collateral | Rate | 20.00% | 20.00% | ||||||||||||||||||||||||
Number of Marketable Securities | shares | 442,384 | 442,384 | 442,384 | 442,384 | ||||||||||||||||||||||
Subsequent Event | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Marketable Securities, Number of Securities Disposed | shares | 1,300,000 | |||||||||||||||||||||||||
Proceeds from Sale and Maturity of Marketable Securities | $ 6,600,000 | |||||||||||||||||||||||||
Secured Debt, Repurchase Agreements | $ 6,700,000 | |||||||||||||||||||||||||
Subsequent Event | Senior unsecured facility $275.0 million [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Loan repayments | $ 15,000,000 | |||||||||||||||||||||||||
Subsequent Event | Loans Payable [Member] | Senior unsecured facility $275.0 million [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Principal amount | 275,000,000 | |||||||||||||||||||||||||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 104,000,000 | |||||||||||||||||||||||||
Subsequent Event | VLCC Vessels [Member] | Term loan facility $110.5 million ING [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Number of vessels pledged as security on long-term debt instrument | tanker | 1 | |||||||||||||||||||||||||
Subsequent Event | VLCC Vessels [Member] | Term loan facility $110.5 million CS 2 [Member] | ||||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||
Number of vessels pledged as security on long-term debt instrument | tanker | 1 |
SHARE CAPITAL (Details)
SHARE CAPITAL (Details) | Feb. 03, 2016USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Mar. 03, 2016 | Sep. 30, 2018shares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 16, 2016$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares |
Class of Stock [Line Items] | |||||||||
Shares issued | 11,868 | 0 | 13,422,818 | ||||||
Net proceeds from issuance of shares | $ | $ 85,000 | $ 0 | $ 98,200,000 | ||||||
Share capital, shares outstanding (in shares) | 169,809,324 | 169,821,192 | 169,809,324 | 169,809,324 | 781,937,649 | ||||
Reverse stock split, conversion ratio | 0.2 | 5 | 5 | ||||||
Ordinary shares authorized, value | $ | $ 1,000,000,000 | ||||||||
Ordinary shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | ||||||
Ordinary shares issued (dollars per share) | $ / shares | $ 1 | $ 1 | $ 1 | $ 1 | |||||
Hemen [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
percentage ownership of stock issue, new shares | 10.00% | ||||||||
Percentage ownership of common stock outstanding | 48.40% | ||||||||
Share capital, shares outstanding (in shares) | 82,145,703 | ||||||||
At-The-Market Offering [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Shares issued | 13,422,818 | 100,000,000 | 11,868 | ||||||
Sale of stock, share price (in dollars per share) | $ / shares | $ 7.45 | ||||||||
Net proceeds from issuance of shares | $ | $ 98,200,000 | ||||||||
At-The-Market Offering [Member] | Hemen [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Shares issued | 1,342,281 | ||||||||
Reverse stock split [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Ordinary shares authorized, value | $ | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 | ||||||
Ordinary shares authorized (in shares) | 500,000,000 | 500,000,000 | 500,000,000 | ||||||
Ordinary shares issued (dollars per share) | $ / shares | $ 1 | $ 1 | $ 1 |
SHARE OPTIONS (Details)
SHARE OPTIONS (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jul. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jul. 30, 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, Fair Value Assumptions and Methodology [Abstract] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | 33 months | ||||
Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted share options (in shares) | 180,000 | 1,170,000 | ||||
Weighted average exercise price, Exercisable Options (in dollars per share) | $ 8 | $ 7.40 | $ 8 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Risk free interest rate (in hundredths) | 0.69% | 2.78% | ||||
Expected life | 3 years 6 months | 1 year 7 months | ||||
Expected volatility (in hundredths) | 79.80% | 38.24% | ||||
Expected dividend yield (in hundredths) | 0.00% | 0.00% | ||||
Risk free interest rate range | 3 years | |||||
Share price (in dollars per share) | $ 5.53 | |||||
Number of shares vested (in shares) | 780,000 | |||||
Number of shares expired or forfeited (in shares) | 33,000 | |||||
Unrecognized stock compensation expense | $ 0.3 | $ 1.2 | ||||
Compensation expense recognized | $ 1 | $ 2.1 | ||||
Weighted average grant date fair value of options granted (in dollars per share) | $ 1.53 | $ 4.06 | ||||
Stock options granted 2018 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Unrecognized stock compensation expense | $ 0.2 | |||||
Share-based Compensation Award, Tranche One [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 1 year | |||||
Share-based Compensation Award, Tranche Two [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 2 years | |||||
Share-based Compensation Award, Tranche Three [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Feb. 27, 2013USD ($)instrument | Dec. 31, 2018USD ($)vesseltypes_of_risk | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)vessel | Feb. 29, 2016USD ($) | Aug. 31, 2015instrumentT | Feb. 01, 2013vessel | |
Derivative [Line Items] | |||||||
Number of newbuild vessels | vessel | 2 | ||||||
Long-term Debt | $ 1,740,552 | $ 1,592,410 | |||||
Mark to market (gain) loss on derivatives | $ 3,190 | 93 | $ 8,017 | ||||
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 | ||||||
Derivative, Notional Amount | $ 323,513 | ||||||
Fair value of derivatives | 7,600 | 4,500 | |||||
Mark to market (gain) loss on derivatives | 4,300 | (800) | 1,900 | ||||
Interest rate swap 1 [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, Notional Amount | $ 14,408 | ||||||
Derivative, Fixed Interest Rate | 1.4025% | ||||||
Interest rate swap 2 [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, Notional Amount | $ 42,951 | ||||||
Derivative, Fixed Interest Rate | 1.5035% | ||||||
Interest rate swap 3 [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, Notional Amount | $ 72,939 | ||||||
Derivative, Fixed Interest Rate | 1.6015% | ||||||
Interest rate swap 4 [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, Notional Amount | $ 14,062 | ||||||
Derivative, Fixed Interest Rate | 1.6998% | ||||||
Interest rate swap 5 [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, Notional Amount | $ 14,405 | ||||||
Derivative, Fixed Interest Rate | 1.7995% | ||||||
Interest rate swap 6 [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, Notional Amount | $ 14,748 | ||||||
Derivative, Fixed Interest Rate | 1.907% | ||||||
Interest rate swap 7 [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, Notional Amount | $ 150,000 | $ 150,000 | |||||
Derivative, Fixed Interest Rate | 2.197% | ||||||
Bunker swaps [Member] | |||||||
Derivative [Line Items] | |||||||
Fair value of derivatives | $ 0 | 0 | 0 | ||||
Mark to market (gain) loss on derivatives | 1,900 | ||||||
Derivative Liability, Number of Instruments Held | instrument | 4 | ||||||
Number of metric tonnes per calendar month | T | 4,000 | ||||||
Term Loan Facility, $466.5 Million [Member] | US Dollar denominated floating rate debt [Member] | |||||||
Derivative [Line Items] | |||||||
Long-term Debt | $ 466,500 | ||||||
MR tanker [Member] | |||||||
Derivative [Line Items] | |||||||
Number of newbuild vessels | vessel | 6 | 12 | |||||
Fair Value, Measurements, Nonrecurring [Member] | Ship Finance Leased Vessels [Member] | |||||||
Derivative [Line Items] | |||||||
Assets, Fair Value Disclosure, Nonrecurring (Deprecated 2018-01-31) | $ 251,700 |
FINANCIAL INSTRUMENTS (Details
FINANCIAL INSTRUMENTS (Details 2) $ in Thousands | Dec. 31, 2018USD ($)vessel | Dec. 31, 2017USD ($)vessel | Dec. 31, 2016USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of vessels under capital lease | vessel | 3 | 9 | |
Total US Dollar floating rate debt | $ 1,524,995 | $ 1,492,056 | |
Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 66,484 | 104,145 | |
Restricted cash | 1,420 | 741 | |
Total US Dollar floating rate debt | 1,525,028 | ||
Total US Dollar fixed rate debt | 212,696 | 99,865 | |
Floating rate debt | 1,492,099 | ||
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 66,484 | 104,145 | |
Restricted cash | 1,420 | 741 | |
Total US Dollar floating rate debt | 0 | ||
Total US Dollar fixed rate debt | 0 | 0 | |
Floating rate debt | $ 0 | ||
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 0 | 0 | |
Restricted cash | 0 | 0 | |
Total US Dollar floating rate debt | 1,525,028 | ||
Total US Dollar fixed rate debt | 7,631 | 10,312 | |
Floating rate debt | 1,492,099 | ||
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 0 | 0 | |
Restricted cash | 0 | 0 | |
Total US Dollar floating rate debt | 0 | ||
Total US Dollar fixed rate debt | 205,065 | 89,553 | |
Floating rate debt | 0 | ||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 66,484 | 104,145 | |
Restricted cash | 1,420 | 741 | |
Total US Dollar floating rate debt | 1,525,028 | 1,492,099 | |
Total US Dollar fixed rate debt | 215,524 | 100,312 | |
Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 66,484 | 104,145 | |
Restricted cash | 1,420 | 741 | |
Total US Dollar floating rate debt | 1,525,028 | 1,492,099 | |
Total US Dollar fixed rate debt | $ 212,696 | $ 99,865 |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Nov. 30, 2018 | Jul. 31, 2018USD ($)vessel | Jan. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017vessel | Dec. 31, 2018USD ($)vesselvessels | Dec. 31, 2017USD ($)vessels | Dec. 31, 2016USD ($)vessels | Dec. 31, 2015USD ($) | Jun. 30, 2016USD ($) | Jan. 01, 2014vessel | |
Related Party Transaction [Line Items] | |||||||||||
Number of newbuild vessels | vessel | 46 | ||||||||||
Proceeds From Sale Of Vessels and Equipment | $ 0 | $ 0 | $ 173,187,000 | ||||||||
Profit share expense | 1,500,000 | 5,600,000 | 50,900,000 | ||||||||
Contingent rental income | (19,738,000) | $ (26,148,000) | $ (18,621,000) | ||||||||
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments | 99,784,000 | ||||||||||
Notes Payable, Related Parties | 21,900,000 | ||||||||||
Senior unsecured facility $275.0 million [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Principal amount | $ 275,000,000 | ||||||||||
Debt Instrument, Increase (Decrease), Net | 155,000,000 | ||||||||||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 89,000,000 | ||||||||||
Loan facility extended period | 12 months | ||||||||||
VLCC Vessels [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Number of newbuild vessels | vessel | 18 | ||||||||||
Number of vessels whose lease was terminated | vessels | 6 | 2 | 1 | ||||||||
Suezmax Vessels [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Number of vessels whose lease was terminated | vessels | 2 | ||||||||||
Ship Finance International Limited [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Related party transactions, Charterhire Paid Including Principal and Interest | $ 47,324,000 | $ 75,055,000 | $ 93,545,000 | ||||||||
Related Party Transaction, Amounts of Transaction | $ 1,100,000 | ||||||||||
Number of Ship Finance vessels | vessel | 2 | ||||||||||
Number of vessels whose lease was terminated | vessel | 3 | ||||||||||
Lease termination payment | (22,391,000) | (19,006,000) | (293,000) | ||||||||
Interest Expense, Related Party | 900,000 | ||||||||||
Profit share expense | 1,535,000 | 5,600,000 | |||||||||
Contingent rental income | $ 26,148,000 | 19,738,000 | 26,148,000 | 18,621,000 | |||||||
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 | 200,000 | 2,100,000 | $ 900,000 | ||||||||
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments | 299,016,000 | 99,784,000 | 299,016,000 | 422,600,000 | |||||||
Notes Payable, Related Parties | $ 0 | 21,894,000 | 0 | ||||||||
Seatankers Management Co. Ltd [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Management fee expenses | 800,000 | 600,000 | 700,000 | ||||||||
Proceeds From Sale Of Vessels and Equipment | $ 2,400,000 | ||||||||||
Feen Marine Scrubbers Inc. [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Due from Related Parties | $ 6,000,000 | ||||||||||
Number of newbuild vessels | vessel | 20 | ||||||||||
Related Party Transaction, Purchases from Related Party | $ 26,000,000 | ||||||||||
Repayment of related party loan notes | 8,200,000 | ||||||||||
Ship Finance Leased Vessels [Member] | Ship Finance International Limited [Member] | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Interest Expense, Related Party | $ 16,400,000 | $ 25,980,000 | $ 35,417,000 |
RELATED PARTY TRANSACTIONS - Su
RELATED PARTY TRANSACTIONS - Summary of Net Amounts Earned (Incurred) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Seatankers Management Co. Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Net amounts earned (incurred) from related parties excluding Ship Finance lease related balances | $ 7,152 | $ 3,420 | $ 6,057 |
Ship Finance International Limited [Member] | |||
Related Party Transaction [Line Items] | |||
Net amounts earned (incurred) from related parties excluding Ship Finance lease related balances | 2,001 | 3,473 | 1,552 |
Golden Ocean Group Limited [Member] | |||
Related Party Transaction [Line Items] | |||
Net amounts earned (incurred) from related parties excluding Ship Finance lease related balances | 7,138 | 6,671 | 9,387 |
Seatankers Management Norge AS [Member] | |||
Related Party Transaction [Line Items] | |||
Net amounts earned (incurred) from related parties excluding Ship Finance lease related balances | 735 | 767 | 919 |
Arcadia Petroleum [Member] | |||
Related Party Transaction [Line Items] | |||
Net amounts earned (incurred) from related parties excluding Ship Finance lease related balances | 0 | 0 | 929 |
Seadrill Limited [Member] | |||
Related Party Transaction [Line Items] | |||
Net amounts earned (incurred) from related parties excluding Ship Finance lease related balances | 279 | 470 | 656 |
Archer Limited [Member] | |||
Related Party Transaction [Line Items] | |||
Net amounts earned (incurred) from related parties excluding Ship Finance lease related balances | 317 | 238 | 235 |
Flex LNG [Member] | |||
Related Party Transaction [Line Items] | |||
Net amounts earned (incurred) from related parties excluding Ship Finance lease related balances | 1,788 | 4,432 | 1,204 |
Deep Sea Supply Plc [Member] | |||
Related Party Transaction [Line Items] | |||
Net amounts earned (incurred) from related parties excluding Ship Finance lease related balances | 43 | 67 | 130 |
North Atlantic Drilling Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Net amounts earned (incurred) from related parties excluding Ship Finance lease related balances | 29 | 37 | 48 |
Northern Drilling Ltd [Member] | |||
Related Party Transaction [Line Items] | |||
Net amounts earned (incurred) from related parties excluding Ship Finance lease related balances | 43 | 0 | 0 |
other related parties [Member] | |||
Related Party Transaction [Line Items] | |||
Net amounts earned (incurred) from related parties excluding Ship Finance lease related balances | $ 15 | $ 0 | $ 0 |
RELATED PARTY TRANSACTIONS - _2
RELATED PARTY TRANSACTIONS - Summary of Related Party Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | ||
Related party receivables | $ 7,895 | $ 5,068 |
Related party payables | 18,738 | 8,921 |
Ship Finance International Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 1,653 | 1,239 |
Related party payables | 8,886 | 6,349 |
Seatankers Management Co. Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 2,657 | 52 |
Related party payables | 3,236 | 1,345 |
Archer Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 173 | 88 |
VLCC Chartering Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 81 | 81 |
Golden Ocean Group Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 2,370 | 1,953 |
Related party payables | 5,558 | 1,227 |
Seadrill Limited [Member] | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 538 | 489 |
Deep Sea Supply Plc [Member] | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 68 | 68 |
Arcadia Petroleum [Member] | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 0 | 0 |
Flex LNG [Member] | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 210 | 979 |
Related party payables | 1,058 | 0 |
North Atlantic Drilling Ltd [Member] | ||
Related Party Transaction [Line Items] | ||
Related party receivables | 116 | 103 |
other related parties [Member] | ||
Related Party Transaction [Line Items] | ||
Related party receivables | $ 29 | $ 16 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)vessel | Dec. 31, 2015lease | Dec. 31, 2017USD ($)vessel | Dec. 31, 2016vessel | |
Other Commitments [Line Items] | |||||
Number of newbuild vessels | vessel | 2 | ||||
EGCS commitments | $ | $ 15.7 | ||||
Number of vessels with BWTS commitments | vessel | 4 | ||||
Installments and newbuilding supervision fees paid | $ | $ 51.1 | ||||
Newbuilding installment Commitments | $ | 114.4 | ||||
Number of leases assigned to third parties and related parties | lease | 2 | ||||
Outstanding lease payments, guaranteed by the Company | $ | $ 6.3 | $ 7.9 | |||
Number of vessels owned | vessel | 46 | ||||
VLCC Vessels [Member] | |||||
Other Commitments [Line Items] | |||||
Number of newbuild vessels | vessel | 2 | 4 | 3 | ||
EGCS commitments | $ | $ 1 | ||||
Number of vessels chartered in from SFIL | vessel | 2 | ||||
Number of vessels owned | vessel | 18 | ||||
Scenario, Forecast | |||||
Other Commitments [Line Items] | |||||
BWTS commitments | $ | $ 2.8 |
SUPPLEMENTAL INFORMATION (Detai
SUPPLEMENTAL INFORMATION (Details) - Ship Finance International Limited [Member] $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)vessels | Dec. 31, 2017USD ($)vessels | Dec. 31, 2016USD ($)vessels | |
Front Century and Front Vanguard [Member] | |||
Other Significant Noncash Transactions [Line Items] | |||
number of capital leased vessels terminated | vessels | 2 | ||
Reduction In Capital Lease Obligation | $ | $ 24.6 | $ 27.1 | |
Front Scilla, Front Brabant, Front Ardenne [Member] | |||
Other Significant Noncash Transactions [Line Items] | |||
number of capital leased vessels terminated | vessels | 3 | ||
Reduction In Capital Lease Obligation | $ | $ 53.2 | ||
Front Circassia, Front Page, Front Stratus, Front Serenade, Front Ariake, Front Falcon [Member] | |||
Other Significant Noncash Transactions [Line Items] | |||
number of capital leased vessels terminated | vessels | 6 | ||
Reduction In Capital Lease Obligation | $ | $ 167.9 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) kr in Millions | 1 Months Ended | 3 Months Ended | |||||||||
Jan. 31, 2019USD ($)Rate | Mar. 31, 2019USD ($)Rateshares | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018NOK (kr) | Sep. 30, 2018USD ($)Rate | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017NOK (kr) | Jun. 30, 2016USD ($) | |
Subsequent Event [Line Items] | |||||||||||
Ownsership interest in associate | Rate | 20.00% | ||||||||||
Secured Debt, Repurchase Agreements | $ 7,700,000 | kr 66.9 | $ 11,900,000 | $ 11,400,000 | $ 10,400,000 | $ 10,300,000 | kr 85.2 | ||||
Senior unsecured facility $275.0 million [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Principal amount | $ 275,000,000 | ||||||||||
Debt Instrument, Unused Borrowing Capacity, Amount | 89,000,000 | ||||||||||
Subsequent Event | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Ownsership interest in associate | Rate | 28.90% | ||||||||||
Payments for (Proceeds from) Loans Receivable | $ 3,000,000 | ||||||||||
Marketable Securities, Number of Securities Disposed | shares | 1,300,000 | ||||||||||
Secured Debt, Repurchase Agreements | $ 6,700,000 | ||||||||||
Proceeds from Sale and Maturity of Marketable Securities | $ 6,600,000 | ||||||||||
Subsequent Event | Feen Marine Scrubbers Inc. [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Ownsership interest purchased by FMSI | Rate | 30.80% | ||||||||||
Subsequent Event | Senior unsecured facility $275.0 million [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Loan repayments | 15,000,000 | ||||||||||
Loans Payable [Member] | Senior unsecured facility $275.0 million [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Principal amount | $ 275,000,000 | $ 275,000,000 | |||||||||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 89,000,000 | ||||||||||
Loans Payable [Member] | Subsequent Event | Senior unsecured facility $275.0 million [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Principal amount | 275,000,000 | ||||||||||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 104,000,000 |