Frontline – Earnings to Soar with Recovery in Tanker Shipping Space

Equity Analyst

Nikesh Shukla

Maritime Sector, Equity & Credit Research

Drewry Maritime Financial Research

With no ties to other players in the shipping, finance or banking world, we provide a uniquely impartial view of the markets and companies we cover. Our parent organization, Drewry is a leading independent provider of research services to the maritime and shipping industry, employing over 100 professionals across an international network of offices in London, Delhi, Singapore and Shanghai. Combining our market-leading resources with seasoned sector expertise DFRS offers a highly differentiated and comprehensive range of investment and financial research services to lenders and prospective investors in publicly listed maritime and shipping companies. The full service of reports, supporting resources and sector orientated webinars provides our clients with the most complete picture of the organisations under coverage as is possible. We have been charting and analysing the world’s maritime markets for more than 40 years. This unrivalled intelligence and understanding provides the foundation of our research service. Our analysts have access to one of the most up-to-date, comprehensive and reliable sources of market insight and research data available today. We look at globally listed companies within the following sectors: Port Operators, Container Shipping, Container Manufacturing & Leasing, LNG Shipping, Dry Bulk Shipping and Tanker Shipping. Combine in-depth sector expertise with financial analysis focusing on over 50 stocks globally.

Equity Bottom-Up

<p><strong>Revenues in line with estimates, losses lower than expected</strong>: Frontline (FRO) reported Time Charter Equivalent (TCE) revenue of USD 80.6m which is 34% lower compared to the same quarter last year despite the company having a larger fleet. The average VLCC and Suezmax spot rates of USD 14,900pd and USD 15,400pd, respectively, were 57.1% and 30.6% lower compared with rates in the same quarter last year. The company’s adjusted EBITDA plunged 47.9% to USD 40m from USD 76.7m in the first quarter of…</p>

Revenues in line with estimates, losses lower than expected: Frontline (FRO) reported Time Charter Equivalent (TCE) revenue of USD 80.6m which is 34% lower compared to the same quarter last year despite the company having a larger fleet. The average VLCC and Suezmax spot rates of USD 14,900pd and USD 15,400pd, respectively, were 57.1% and 30.6% lower compared with rates in the same quarter last year. The company’s adjusted EBITDA plunged 47.9% to USD 40m from USD 76.7m in the first quarter of…

Frontline (FRO US) – Earnings to Remain in Red; No Dividends on Horizon, Reiterate Unattractive