Frontline: Aggressively Buying Cash Flow In A Tight Tanker Market

Nov. 01, 2023 4:29 PM ETFrontline plc (FRO) StockCMBT, FRO19 Comments
Bram de Haas
19.95K Followers

Summary

  • Frontline plc recently acquired 24 VLCCs from Euronav in a complex deal, increasing its fleet capacity by 57%.
  • The acquired vessels are young and eco-friendly, with 9 out of 24 equipped with scrubbers.
  • Frontline's earnings and free cash flow per share are expected to be highly accretive, but the company's success is dependent on VLCC rates and market conditions.

Oil Tanker

HeliRy

Frontline plc (NYSE:FRO) recently acquired 24 VLCCs (very large crude carriers) from Euronav (EURN) in a complex deal with Compagnie Maritime Belge that also buys Frontline's 26% stake in Euronav at $18.43/share. CMB will then bid

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This article was written by

19.95K Followers
Bram de Haas brings 15 years of investing experience to the table and has over 5 years of experience managing a Euro hedge fund. He is also a former professional poker player and utilizes his bundle of risk management skills to uncover lucrative investments based on special situations.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of FRO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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