Sailor Stocky

Tanker Stocks: Frontline Slashes Dividend

Well Frontline revenues are exposed 65% in the declining spot frate market for oil. The rates have been rapidly falling as the demand for oil has been falling affected by less trasportation, less industrial production less cars less.. less.. less.., the unfolding of the global crisis. Meanwhile FRO has the highest breakeven levels (34k/d VL and 24/d Suez) in their industry which will turn negative if the rates slip more. If you add the 1.4billion orderbook and demanding repayment schedule. I would much rather hold to the Shipfinance until that gets affects too. You can't expect any high leverage players exposed to market headwinds to sustain their dividents and withstand its shareprise until we are out of this slump.