Frontline Plc (NYSE:FRO) shares are trading higher on Friday. The company reported revenue of $427.9 million, surpassing the $264.2 million consensus.
Adjusted EPS declined to 18 cents from 62 cents a year ago, missing the consensus of 23 cents.
The company’s reported spot time charter equivalent earnings (TCEs) for VLCCs, Suezmax tankers, and LR2/Aframax tankers were $37,200 (vs. $48,100 last year), $31,200 (vs. $45,800 last year) and $22,300 (vs. $54,300 prior year) per day.
At the close of the first quarter of 2025, contracted ballast days totaled 887 for VLCCs, 306 for Suezmax tankers, and 216 for LR2/Aframax tankers.
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As of March 31, 2025, the company owned a fleet of 81 vessels, including 41 VLCCs, 22 Suezmax tankers, and 18 LR2/Aframax tankers, with a total capacity of approximately 17.8 million DWT.
Net operating income for the quarter declined to $93.2 million from $251.3 million a year ago. Operating cash flow was $137.9 million in the first quarter, compared to $171.3 million in the same quarter a year ago.
The company held cash and cash equivalents of $436.5 million at the end of the quarter. The Board declared a $0.18 per share dividend for the first quarter, payable on or about June 24, 2025, with a record date of June 12, 2025.
Lars H. Barstad, CEO of Frontline Management AS, said, “The first quarter of 2025 came in line with the previous quarter, somewhat muted relative to the economic and political backdrop during the period. In times of uncertainty, it’s comforting to operate in an industry that maintains business as usual, transporting oil and products around the world at a steady pace.”
“Utilization on the larger ships has improved during the quarter and with continued pressure and enforcement on sanctioned trades, we have seen healthy developments in activity across the segments that Frontline deploys.”
“Fleet growth remains slow, and ordering has again stalled, continuing to support the long-term fundamental story for tankers, where Frontline is ideally positioned with its cost-focused business model and spot-exposed, modern fleet,” Barstad added.
Inger M. Klemp, CFO of Frontline Management AS, said, “Through our refinancings in 2025, we have further strengthened our strong liquidity, leaving the company with no meaningful debt maturities until 2030, and further reduced our borrowing costs and cash breakeven rates.”
Frontline expects spot TCEs for the second quarter of 2025 to be lower than the spot TCEs currently contracted, primarily due to the impact of ballast days.
Investors can gain exposure to the stock via SonicShares Global Shipping ETF (NYSE:BOAT).
Price Action: FRO shares are trading higher by 3.90% to $17.85 at last check Friday.
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