Frontline: A Giant Is Reborn
J Mintzmyer • 121 Comments
J Mintzmyer • 121 Comments
Substantial Upside Remains: Frontline Earnings Preview
J Mintzmyer • 111 Comments
J Mintzmyer • 111 Comments
Wed, Oct. 19, 11:42 AM
- Oil tanker rates have jumped to a four month high as traders booked the most-ever cargoes for this time of year, offering signs that Middle East producers could be adding barrels to the market just before OPEC cuts.
- Traders booked 141 spot cargoes for the month of October, the highest in at least 12 years, and dayrates on shipments from the Middle East to Asia jumped to nearly $46,900 while a surplus of crude tankers in the Persian Gulf matched the lowest level in a year, Bloomberg reports.
- Relevant tickers include FRO, NAT, TNP, TK, NNA, DHT, GNRT, STNG, GNR, NAP.
Fri, Oct. 14, 7:31 AM
- Frontline (NYSE:FRO) today announced that it has entered into an agreement with STX Offshore to terminate contracts for four VLCC newbuildings due for delivery in 2017. The contracted price of these vessels was $364.3M, of which the company has made installment payments of $45.5M.
- Following the contract terminations, the Company has been released of any and all obligations relating to the contracts, and received all installment payments made to STX, less a $0.5 million cancellation fee per vessel.
- "The Company believes the market will continue to present attractive opportunities, and we will assess on-the-water and resale assets, which are at historically low prices. Frontline's low cash breakeven levels, and access to attractively priced capital, gives the Company significant operating leverage and positions Frontline to take advantage of price dislocations in the market."
- Following the terminations, Frontline's fleet consists of 73 vessels, including newbuildings, with an aggregate capacity of approximately 13.5 million dwt. The Company's fleet is comprised of 25 VLCCs, 22 Suezmax tankers, 22 LR2/aframax tankers and one MR. In addition, we have three MR tankers chartered in on short term contracts.
- Source: Press Release
Thu, Oct. 6, 9:14 AM
Thu, Sep. 8, 7:29 AM
Wed, Aug. 31, 9:15 AM
Wed, Aug. 31, 5:00 AM
Mon, Jun. 13, 7:45 AM
- Frontline (NYSE:FRO) announces it entered into an agreement to sell six medium range tankers for a total of $172.5M to an unaffiliated third party.
- The vessels will be delivered by Frontline during September and October of this year.
- The transaction takes the size of Frontline's fleet down to 79 vessels with an aggregate capacity of approximately 15.3M dwt.
Thu, Jun. 2, 5:38 PM
- Frontline (NYSE:FRO) finished 4% higher in today's trade after announcing a new joint venture with shipping peers Euronav (NYSE:EURN) and privately-held Diamond S Management.
- The companies say the aim of the Suezmax Chartering JV is to create a single point of contact for cargo owners to access a large fleet of tankers in the spot market.
- In the venture, cargo owners will be able to access 43 Suezmax-size vessels in the fleet; FRO says it will contribute 22 vessels, including eight newbuilds as they are delivered.
Tue, May 31, 1:56 PM
- Frontline (NYSE:FRO) declares $0.40/share quarterly dividend, 14.3% increase from prior dividend of $0.35.
- Forward yield 18.12%
- Payable June 20; for shareholders of record June 13; ex-div June 9.
Tue, May 31, 1:38 PM
- Frontline (FRO +8.5%) rallies after the company topped revenue expectations with its Q1 report by a wide margin ($227M vs. $187M consensus).
- The company also pointed to firming tanker rates and said it will stick to its dividend policy.
- The strong read from Frontline is giving a lift to the broad sector with Ship Finance International (SFL +2.9%), DHT Holdings (DHT +1.5%), Teekay Tankers (TNK +1.3%), and Gener8 Maritime (GNRT +5.5%) all showing gains.
Tue, May 31, 5:54 AM
Mon, Feb. 29, 1:02 PM
- Frontline (FRO +2.1%) announces a cash dividend of $0.35 per share for Q4.
- During the earnings call, management said the payout represents more than 97% of adjusted earnings for the quarter.
- The dividend reps a yield of 15.5% at Friday's closing price.
- Previously: Frontline misses on revenue (Feb. 29 2016)
- Frontline earnings call transcript
Mon, Feb. 29, 5:37 AM
- Frontline (NYSE:FRO): Q4 Net Income of $58.6M.
- Revenue of $154.02M (+102.5% Y/Y) misses by $38.2M.
Sun, Feb. 28, 5:30 PM
Mon, Feb. 22, 10:19 AM
- Shipping stocks are on the move after the large jump in crude oil prices eases some anxiety over demand.
- Notable gainers include Diana Shipping (DSX +12.1%), Navios Maritime Partners (NMM +6.5%), Frontline (FRO +6.6%), and Scorpo Bulkers (SALT +5.9%).
- The trucking sector is also ahead of broad market averages off the oil news. ArcBest (ARCB +4.4%), Swift Transportation (SWFT +1.6%), Celadon Group (CGI +2%), and Knight Transportation (KNX +2.6%) (also upgraded) are on the rise.
- Railroad industry players CSX (CSX +3.8%) and Genesee & Wyoming (GWR +3.7%) are up sharply.
- On the vehicle manufacturing/supplier side, solid gainers include Meritor (MTOR +6.7%), Dana Holding (DAN +2.7%), Westport Innovations (WPRT +3.9%), Oshkosh (OSK +3.8%), Navistar (NAV +5.4%), and PACCAR (PCAR +2.3%).
- The Detroit Three are all in rally mode as well. Ford (NYSE:F) and GM (NYSE:GM) are up 2%, while Fiat Chrysler Automobiles (NYSE:FCAU) is 3.3% higher.
- Previously: Oil prices rebound, WTI heads back above $30 (Feb. 22 2016)
Wed, Feb. 3, 9:58 AM
- Frontline's (NYSE:FRO) reverse 1-for-5 stock split became effective today.
- Some stock quoting service are running behind the development and are showing shares with a +400% gain. Shares are actually up about 1.5%.