FRO Q2 2023 results

Announced 08/24

  • Rev of $512.8M
  • Adjusted Net Income of $230.7M
  • Spot TCEs (daily): VLCCs $64K, Suezmax $61.7K, Aframax/LR2 $52.9K
  • Declared a Q2 div of $0.80/sh
  • Repaid a portion of relative expensive debt from Hemen (unsecured) - partially used funds from sale of VLCC in Q2
  • While lower (as expected), very profitable rates for each category Qtr 3-to-date

2nd Quarter 2023 Results (

FRO playing a waiting game here. FRO mgmt have suggested they won’t jump into the newbuild market. Vast majority of their fleet 56 of 65 owned vessels are < 10 years of age, so there is little need to chase after new vessels to replace aging vessels. Have quite a few dry docks or ship surveys the second half of 2023 - eight. But Q3 has traditionally been a better market to take vessels offline. IIRC, vessels going offline are mainly Suezmax.

FRO are at a nice place. But an analyst question did raise the issue of a new risk. Next year (2024) is the start of a taxation policy in Europe on any deliveries into Europe. Impact is on up to 15% of FRO’s business.

FRO is my largest shipping bet. I like how the company is managing its fleet in the current market. That I’m aware, only two vessels are on time-charters (Aframax/LR2s fixed earlier this year @ above-average TC rates). I think much of the older fleet is a wait-and-see situation. If a good offer comes along, FRO are open to parting with said vessel.