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Frontline (FRO +23%) soars after John Fredriksen backs the sector for gains due to "high growth"...

Frontline (FRO +23%) soars after John Fredriksen backs the sector for gains due to "high growth" in LPG production. Other shipping stocks on the move: Ship Finance International (SFL) +1.5%, Seadrill (SDRL) +1.2%, StealthGas (GASS) +3.4%, GasLog (GLOG) +3.2%.
Comments (10)
  • ComputerBlue
    , contributor
    Comments (821) | Send Message
     
    Seadrill is a shipping stock eh?
    17 Jun 2013, 11:23 AM Reply Like
  • therealevan
    , contributor
    Comments (151) | Send Message
     
    Maybe Mr. Fredriksen should say things like this more often if he has that much effect over shipping stocks.
    17 Jun 2013, 11:25 AM Reply Like
  • ComputerBlue
    , contributor
    Comments (821) | Send Message
     
    No doubt. A few weeks ago, I think he said the shipping sector wouldn't fully recover for a few years. His words are more bullish today.
    17 Jun 2013, 11:31 AM Reply Like
  • Mike Maher
    , contributor
    Comments (2616) | Send Message
     
    Does FRO even have any exposure to LPG?
    17 Jun 2013, 01:50 PM Reply Like
  • Herr Hansa
    , contributor
    Comments (3080) | Send Message
     
    Frontline 2012, the spin-off of FRO, has two newbuilding LPG carriers set for delivery in 2014. Other than that, there may be some plans for those additional shares issued for SFL, and a purchase could go to the Frontline fleet.

     

    A little over a year ago, there was some speculation that FRO may try to purchase Torm of Denmark. While I think that is unlikely, there have been majority shareholders in Torm pushing to sell more ships to prop up cash flows. There possibilities for Fredriksen to move into the LPG sector, even prior to those two LPG carriers being delivered.
    18 Jun 2013, 11:38 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2616) | Send Message
     
    So basically no reason for the huge spike
    18 Jun 2013, 11:55 PM Reply Like
  • Herr Hansa
    , contributor
    Comments (3080) | Send Message
     
    Unless we see an announcement in a change of major shareholders, I don't see much reason for the sudden change. The extra shares of SFL may indirectly help FRO, but so far there has been no announcement of exact plans. Interestingly SFL went down quite a bit today.
    19 Jun 2013, 12:06 AM Reply Like
  • MattOil
    , contributor
    Comments (16) | Send Message
     
    Frontline 2012 has ordered LPG vessels. So far the only pure LPG-player with exposure to VLGCs I am aware of is Solvang ASA. They have surged a bit recently, but still lagging peers. Spot rates for LPG-shipping have recently doubled from March till June.
    17 Jun 2013, 01:59 PM Reply Like
  • pbrask
    , contributor
    Comment (1) | Send Message
     
    His new baby is Frontline 2012(FRNT) witch is on the Norwegian OTC.
    In that company is only 11 ships on the water (VLCC+Smax) but he has ordered almost 60 newbuildings: MR, L2`s ,LPG and Cape`s
    The MR`s starts to come here in July.
    17 Jun 2013, 02:45 PM Reply Like
  • hpwl
    , contributor
    Comments (4) | Send Message
     
    LNG/LPG market supply in historic change , add part of the transportation package,(GASS) ,much more upside than Frontline 2012 due to heavy exposure to VL and MR markets.
    17 Jun 2013, 10:51 PM Reply Like
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