In the short-term, we have already seen the market rebound, following extended refinery maintenance ahead of IMO 2020. Then, thank you very much. And that says, as you know, that the excess cash flow from the Company should be used in more or less for dividends going forward.Okay. This view gave us the conviction to acquire 10 too fast and '19 built Suezmaxes, all of which are fitted with scrubbers from Trafigura. The decrease in net income in the second quarter is mainly explained by a decrease in result on a time charter basis, due to the lower reported TCE rates in the second quarter compared to the first quarter.Let's then take a look at the balance sheet on Slide 6. Please ask your question.Yes. Frontline's low cash breakeven rates offers a strong downside protection against low rate and at the same time, it creates a great upside potential in the strengthening tanker market.Every $1,000 per day in achieved rates in excess of our cash breakeven, translates to approximately $22 million in incremental net income per year or $0.12 per share, which shows the net -- the high importance of remaining -- maintaining our low cash breakeven rates.In the graph on the right-hand side of the slide, we have shown incremental net income per year and per share, assuming $10,000, $20,000 and $30,000 per day in achieved rates in excess of our cash breakeven, respectively. Retirement But we are still trading in the area, but with heightened security and we will be keeping a very close eye on everything that's going on.Okay, good. etc.? Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.Ladies and gentlemen, thank you for standing by. There are obviously various factors to support our positive market outlook, and we constantly monitor developments. They're also doing lot of the Atlantic [Indecipherable].
We estimate average cash cost breakeven rate for the remainder of 2019 of approximately $24,500 per day for the VLCCs, $21,300 per day for Suezmax tankers and $16,200 per day for the LR2 tankers. As we just looked at, there is still a fair amount of vessels to be delivered over the next 18 months, but this number has eclipsed by the number of vessels created in 15 years.
So by Q1 next year, we'll be just below half the fleet.Q1 half fleet. Stock Market So also the Frontline trade was a very, very crucial situation and we've gone down in terms of bookings. And we have been continuously able to secure attractive financing.Let's look at the right side of the slide and the Trafigura-Suezmax deal. Please ask your question.Thank you.
You talked about maybe focusing on the VLCCs going forward. We'll have a look at how deliveries decline after 2019 and older vessels will face costs.
Have you assessed either operationally, what it potentially means for your fleet, or financially from a supply demand perspective? Will it change things very much and how is Brazil coming as far as paying out...It's one of them [Phonetic] earlier question, it is a difficult one to be very precise and conclusive on, but if you look at the expiration and the plants in the country and the investors being brought in, also from our state in which a company that we know, then I think it's fair to say that it looks like it's going to be a growth area in terms of exports.Okay. So I think the focus now will be to possibly do something on the VLCCs, we certainly don't have to.
For the Q4, we've done a little bit, but very little. Five vessels will be chartered back to Trafigura for three years at $28,400 with a profit-sharing scheme, where we will receive 50% of all profits.We find this to be a very attractive value deal and it also protects our downside. Looking back, I would actually say that rates kept up pretty well, given what was going on with the refineries.Recently VLCC rates have again moved up sharply, refineries are now restoring capacity and throughput looks to be rebounding quickly. Quarterly Results. And we believe we are right at the start of a market upturn that could be the start of a strong tanker cycle. Within September. We already had 18 ships in the segment, all modern. The last one, Robert, it's kind of fresh, so I don't know if you've had a chance to assess it yet. We're seeing in sales, we'll see in the last few weeks. Do you see it coming down or is it still very tenuous?Alert? An increase in vessels of $70 million is due to the delivery of Front Discovery in April and depreciation in the quarter. Thinking about investing in the stock from Frontline Ltd. because of the upcoming earnings date or dividends history? And finally, an increase in equity of $10.5 million, representing the net income in the second quarter and $9.3 million of share issuance proceeds in relation to the ATM program.As of June 30, Frontline had $257 million in cash and cash equivalents, including the undrawn amount under our unsecured loan facility, marketable securities and minimum cash requirements. A decrease in vessels under finance leases by $3 million due to depreciation, net increase in debt with $31 million in the quarter, following $59 million in repayments and $89.5 million in draw downs.A decrease in obligations on the finance leases with $3.3 million, due to amortization of profit share expense and lease repayments. The fact that incremental production is coming from the U.S. and a good deal of it is heading east is a clear positive for tonne-mile demand growth. Thank you.