Frontline (FRO) Annual Report 2023

Frontline (FRO) is a Top 10 individual holding, and my second largest shipping idea. The company just released last year’s annual report. Always nice to read or skim through their report - frequently there’s small nuggets related to the tanker market and/or Frontline.
(First pass)

  • Looks like FRO are selling another older Suezmax in Q2 2024
  • FRO appear to have added additional charter coverage - a VLCC in March 2024, and a Suezmax in Apr 2024
  • FRO have existing charter coverage on 4 LR2/Aframax vessels
  • The six acquired VLCC newbuilds that the company took delivery in 2022 and 2023 cost a little under $95M each.
  • Stake owned by Fredriksen’s two trusts is 35.8%.
  • FRO also own stakes in other Fredriksen-backed entities (SFL, GOGL & Avance Gas). The 442K shares of Avance Gas being the largest investment stake.

The first four LR2 vessels FRO ordered, and later sold to SFL, all had scrubbers. The four newest LR2s also all have scrubbers. The rest of the LR2s (the middle 14) do not have scrubbers. Just a really odd data-point.