Latest news with #FrontlinePLC
Yahoo
a day ago
- Business
- Yahoo
Frontline (FRO) Jumps 7.5% as Geopolitical Tensions Expected to Benefit Operations
We recently published a list of . In this article, we are going to take a look at where Frontline PLC (NYSE:FRO) stands against other best-performing stocks of Friday. Frontline PLC extended its rally to a fourth consecutive day on Friday, jumping 7.46 percent to finish at $19.74 apiece as investors gobbled up shares in the company amid the ongoing geopolitical tensions between Israel and Iran. Frontline PLC (NYSE:FRO), an oil tanker company, is expected to benefit from the geopolitical risks due to expectations of higher freight rates and rerouting costs. A fleet of oil tankers sailing across the open sea under a clear sky. Israel released its biggest-ever military strike on Iran on Friday, killing the latter's military chief, head of its elite Revolutionary Guard Corps, and air force leader. The strike prompted Iran to retaliate, firing fewer than 100 missiles. Following Israel's strike on Iran, Western naval forces had warned commercial shipping companies of heightened risks, including around the Hormuz Strait. In a phone interview with Bloomberg, Frontline PLC (NYSE:FRO) CEO Lars Barstand said that the company became 'far more hesitant offering in.' However, Frontline PLC (NYSE:FRO) remained business as usual, albeit exercising caution in the risky areas. While we acknowledge the potential of FRO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
24-05-2025
- Business
- Yahoo
Frontline PLC (FRO) Q1 2025 Earnings Call Highlights: Strong TCE Rates and Cash Generation ...
VLCC TCE Rates: $37,200 per day in Q1 2025; 68% booked at $56,400 per day for Q2. Suezmax TCE Rates: $31,200 per day in Q1 2025; 69% booked at $44,900 per day for Q2. LR2/Aframax TCE Rates: $22,300 per day in Q1 2025; 66% booked at $36,100 per day for Q2. Profit: $33.3 million or $0.15 per share in Q1 2025. Adjusted Profit: $40.4 million or $0.18 per share in Q1 2025. Time Charter Earnings: Decreased from $249 million in the previous quarter to $241 million in Q1 2025. Cash and Liquidity: $805 million in cash and cash equivalents as of March 31, 2025. Fleet Composition: 41 VLCCs, 22 Suezmax tankers, 18 LR2 tankers; average age 6.8 years. Cash Breakeven Rates: $29,700 per day for VLCCs, $24,300 per day for Suezmax, $23,300 per day for LR2s. OpEx Expenses: $8,400 per day for VLCCs, $8,000 per day for Suezmax, $8,200 per day for LR2s; Q1 fleet average $8,300 per day. Cash Generation Potential: $332 million or $1.49 per share, with a 30% increase from current spot market potentially doubling cash generation. Warning! GuruFocus has detected 4 Warning Signs with FRO. Release Date: May 23, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Frontline PLC (NYSE:FRO) achieved strong TCE rates in Q1 2025, with VLCCs at $37,200 per day, Suezmax at $31,200 per day, and LR2/Aframax at $22,300 per day. The company has a solid balance sheet with $805 million in cash and cash equivalents, and no significant debt maturities until 2030. Frontline PLC (NYSE:FRO) operates a modern fleet with an average age of 6.8 years, consisting of 99% ECO vessels, enhancing operational efficiency. The company has substantial cash generation potential, with a projected $332 million or $1.49 per share, which could increase by 100% with a 30% spot market rise. Frontline PLC (NYSE:FRO) benefits from a growing demand for compliant tonnage as sanctions widen, potentially increasing market opportunities. Adjusted profit in Q1 2025 decreased by $4.7 million compared to the previous quarter, primarily due to lower TCE rates. Operating expenses increased, with ship operating expenses at $60.3 million, reflecting higher costs compared to previous quarters. The tanker market faces uncertainties due to geopolitical tensions, including potential impacts from US policy changes and sanctions. Frontline PLC (NYSE:FRO) is trading at a discount to NAV, indicating potential undervaluation despite a positive industry outlook. The company faces challenges in monetizing older vessels due to market dynamics and compliance concerns, limiting asset sales opportunities. Q: Activity in the Atlantic for VLCC fixtures has been quiet. Is this due to OPEC's accelerated ramp, and what might drive more long-haul cargoes out of the Atlantic Basin? A: Lars Barstad, CEO: The quietness in the US Gulf area is puzzling. It could be due to tonnage sitting on oil majors' hands, refinery runs in the US ahead of summer, or increased Canadian exports. However, there is active flow from Brazil and Guyana, and increased interest from India in West African barrels. Q: Operating costs have increased sequentially and year-over-year. What is driving this? A: Inger Klemp, CFO: The previous quarter's lower costs were due to insurance and supplier rebates. The current quarter's $60.3 million is more reflective of ongoing costs. Administrative expenses also increased due to a re-evaluation of synthetic option liability. Q: Frontline is trading at a discount to NAV despite a positive industry outlook. Is a strategic change needed to regain premium valuation? A: Lars Barstad, CEO: The discount is surprising. There has been an outflow of shareholders and high short interest. Investors are cautious and want proof before investing. Frontline remains disciplined, retaining upside potential by not engaging in extensive time charter contracting. Q: With VLCC rates improving, have we seen the full benefit of sanctions, or is there more to come? A: Lars Barstad, CEO: The full impact of sanctions is not yet realized. Incremental barrels are coming from compliant sources, and OPEC is returning barrels to the market. This is positive for the compliant fleet, particularly VLCCs, and we expect a stronger market in the coming months. Q: What was the main driver for refinancing the '24 VLCCs early? A: Inger Klemp, CFO: The primary driver was the margin reduction, with an extension of the duration being an additional benefit. The refinancing reduced the margin from 200 basis points to 170. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-05-2025
- Business
- Yahoo
Why Frontline PLC (FRO) Soared on Monday
We recently published a list of Why These 10 Firms Soared on Monday. In this article, we are going to take a look at where Frontline PLC (NYSE:FRO) stands against other Monday's best performers. The stock market kicked off the trading week on a negative note as investors sold off on a new round of uncertainties from President Donald Trump's tariff policies. The Nasdaq fell by 0.74 percent, while the S&P 500 dropped 0.64 percent and the Dow Jones was down by 0.24 percent. Over the weekend, Trump told reporters that the US was negotiating with many countries, 'but at the end of this, I'll set my own deals — because I set the deal, they don't set the deal.' He added that he had no intentions to talk with Chinese President Xi Jinping, dampening hopes of a potential negotiation between the two of the world's largest economies. Beyond the major indices, 10 companies stood out with strong gains amid a flurry of fresh developments. In this article, we name Monday's 10 best performers and detail the reasons behind their gains. To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume. Why Frontline PLC (FRO) Soared on Monday A fleet of oil tankers sailing across the open sea under a clear sky. Frontline PLC (NYSE:FRO) Frontline PLC, a Cyprus-based oil shipping company, saw its share prices grow by 3.85 percent on Monday to close at $17.79 apiece, as investors snapped up shares following news that oil-producing countries agreed to ramp up production next month. According to the Organization of the Petroleum Exporting Countries (OPEC)+, members agreed to hike production by another 411,000 barrels per day after boosting production by the same amount this month. Following the news, prices of Brent crude and WTI declined by 1.63 percent and 1.97 percent, respectively. Meanwhile, the move spelled good news for Frontline PLC (NYSE:FRO) as more oil production would result in further crude oil shipment orders. Meanwhile, Frontline PLC (NYSE:FRO) is expected to release the results of its first quarter earnings performance on May 30. Investment firm Zacks Research recently assigned the company a 'strong buy' triggered by an upward trend in its earnings estimates. Overall, FRO ranks 8th on our list of Monday's best performers. While we acknowledge the potential of FRO as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than FRO but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
