Frontline (FRO) Q4 2022

Tanker entity Frontline (FRO) reported Q4 2022 and full year results on 2/28/23.

  • Operating rev of $530.1M
  • Net income of $240M (highest net income since Q2 2008)
  • Declared Q4 dividend of 77c/sh.
  • There is a Q3 dividend of 30c/sh that was deferred until the completion of the Euronav merger. Since merger did not get consumed, not sure how FRO determine eligibilty for Q3 div.
  • Reported Q4 TCE avgs: VLCCs - $63,200, Suezmax - $57,900 & Aframax/LR2s - $58,800 (historic high)
  • Q1-to-date TCE avgs Even higher currently, but expected to decrease with some ballast days,
  • Sold an older VLCC (2009 build) and an older Suezmax (2009 build) for > $100M
  • Repaid a portion of expensive line-of-credit from Fredriksen. The facility keeps getting rolled forward (now into 2024). I suspect, some of it may be paid down during good quarters, and then eventually, Fredriksen just converts a portion to equity.
  • Took delivery of two newbuild VLCCs in Jan 2023.
  • Euronav filed a case against Frontline for terminating the merger. A court has already ruled in Frontline’s favor.

4th Quarter 2022 Results (

Though a little late to the party, took a FRO position this week. Seems like FRO has rediscovered some of its tanker mojo. Though the company could have opted to stay focused on just the VLCC and Suezmax segments, the decision to opt-in on the Aframax/LR2 category now seems a good move. The vessel category offers FRO optionality to trading clean too.


During the earnings call, FRO mgmt made an odd comment. They suggested that the LR2 had limited opportunities after year 15 of trading. I find this an unusual statement.

  1. As a company, FRO is a more recent company in the clean tanker business. They sold their oldest LR2s to SFL last year, and each of the 4 vessels was less than 10 years old.
  2. Isn’t trading dirty i.e. acting as an Aframax, an option?

FRO scrubber data:
I think there is some data in one of the slides, but the link provides more line-item data
Frontline: 65pct of our fleet will be scrubber fitted - Offshore Energy (

End of Q3 2022: 15 VLCCs, 19 Suezmax & 3 Afra/LR2s
Oct 2022 - Add 1 VLCC, 1 Afra/LR2
Jan 2023 - Add two newbuild VLCCs
2023 - planned 2 VLCCs

Is the low count on Afra/LR2s due to the longer payback period? Not sure, but with FRO prtially owning a scrubber business, I would have expected FRO to be at 75 - 80% vessels with scrubbers installed.