(First take)
While still the 26th on the US West Coast, it is already 02/27 in Europe, and Frontline have released their Q4 2025 results. At first glance, it has good “stuff”.
- Rev of $624.5M
- Profit of $227.9M
- Declared div of $1.03/sh
- TCE daily: VLCC $74.2K. Suezmax $53.8K, Aframax/LR2 $33.5K
FRO – Fourth Quarter and Full Year 2025 Results - Frontline
The vessel avg for each category looks even better in Q1 2026 (qtr-to-date). FRO secured one-year charters for 7 VLCCs @ $76.9K daily, and added another one year VLCC charter @ $93.5K daily. It is probably 15 - 18 years since FRO had this level of VLCC charter coverage. The one-year TC rate is extremely high.
More later …
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And now the later …
There was some additional points in the Earnings Call transcript. I think when DHT announced results, their CEO avoided identifying the entity as Sinokor. In the FRO call, the analyst specifically mentioned Sinokor. FRO CEO gave his thoughts on the issue, and specifically identified the nuance that FRO, as a publicly traded entity, would make it harder to accomplish. Rates have indeed gone hyperbolic this week - VLCCs zoomed over $210K daily. How long will it last? FRO CEO was not ready to guess. Only suggesting to expect volatility in the tanker market. Per earlier thought, on TC coverage, yes, it is higher. It may increase, but don’t expect 50%. Maybe 1/3. CFO suggested the newbuilds need 25% payment initially, and expects about 60% financing when vessel delivers. That gives some idea how much wiggle room is available from the 8 VLCC sale event. Pay the debt on the sold vessels, make the down payment on the newbuilds. FRO’s Q1-to-date looks impressive for VLCCs and Suezmax, so I think Q1 2026 is looking good.