Frontline (FRO) Q1 2026 results

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Announced on 05/22 - the start of a holiday weekend (that typically involves a fair amount of driving) :slight_smile: I had skimmed over an initial report to capture the big items - rev, div, TCE. Then looked at the report that is provided in the link below.

  • Operating rev of $553.7M
  • Adj EBITDA of $457.8M
  • Adj profit of $344.9M
  • Gains of $210.9M from vessel sales
  • Daily TCE: VLCC $103,500 Suezmax $72,400 Aframax/LR2 $50,700
  • Arranged partial financing for VLCC newbuilds $737M
  • Secured refinancing and revolver of $237.5M to cover three vessels.
  • Declared div of $1.55/sh

https://ml-eu.globenewswire.com/Resource/Download/767cde4f-8aeb-491a-ad31-2bd20f020f5a

Their spot rates Q2-to-date look very nice VLCC $181,700 (82% done) Suezmax $131,300 (79%) Afra/LR2 $125,000 (68%). Interestingly, two of the VLCC newbuilds start operations with 1-year charters @ $110,000 daily. FRO had $945M in liquidity at the end of Q1 2026. With the earlier points on financing, the figure likely has changed. Plus, FRO have sold two Suezmax in Q2 2026 at very profitable prices. Debt under $3B (per 03/31/26) looks very good for a fleet that size and vessel vintage.

More after I read the transcript

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The transcript has been skimmed intently. It has some additional color that I liked. FRO took the additional VLCC coverage as a hedge. Definite backwardation in the market - 1 year $110K - $120K, 2-year TC $90K, 3-year $75K - $76K. An interesting situation of NOCs, oil traders, etc owning around 55 VLCCs opting to hold vessels around the MEG region waiting to get at Gulf oil at cheaper clearance prices when Strait of Hormuz reopens. Different oil pattern at US Gulf, first high VLCC rates, last about a week, then elevated rates for Suezmax. Then Aframax rates get a hike. Just a thought, FRO’s fleet composition indirectly benefits from this – the Q2-to-date spot avg supports this.

Frontline plc (FRO) Q1 2026 Earnings Call Transcript | Seeking Alpha

Nobody asked - Do FRO have any VLCCs or other vessel categories stuck in the MEG region? FRO have a seemingly higher docking schedule in 2026 - 17 vessels. On the flip side, some of the VLCCs sold in Q1 2026 would have likely been dry docked this year.

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