Frontline Q3 2022

Tanker giant Frontline (FRO) reported Q3 2022 results on 11/30/22

  • Rev of $382.2M
  • Net income of $154.4M
  • Will pay a Q3 div, but it won’t happen until the Euronav (EURN) merger is complete.
  • 2 new term loan faciities for refinancing existing facilities
  • Extended the $275M credit facility arranged by Mr Fredriksen by another year,to 2024.

Improving tanker market puts the company in a great position for Q4 2022. And beyond, if the market continues on its trajectory in 2023.

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Couple more comments:

  • FRO fleet (owned): Afra/LR2 18, Suezmax 27, VLCC 21 (+2 newbuilds)
    Vessels built 2017 or later: Afra/LR2 11, Suezmax 17, VLCC 14 (+2 newbuilds)
    Vessels built after 2012: Afra/LR2 18, Suezmax 21, VLCC 15 (+2 newbuilds)
    56 of 68 (incl 2 newbuilds) vessels less than 10 yo - a relative young fleet.
  • Fleet age makes the debt per vessel less scary
  • Low count in newbuilds puts upward pressure on vessel values (vessels acquired in the last few years look particularly positive in this light)
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