Frontline plc (the âCompanyâ, âFrontline,â âwe,â âus,â or âourâ), today reported
âŚ
Vis børsmeldingen
unaudited results for the three months ended March 31, 2026:
Highlights
- Profit of $559.1 million, or $2.51 per share for the first quarter of 2026.
- Adjusted profit of $344.9 million for the first quarter of 2026, the
strongest since the fourth quarter of 2004, or $1.55 per share.
- Declared a cash dividend of $1.55 per share for the first quarter of 2026.
- Reported revenues of $714.2 million for the first quarter of 2026.
- Achieved average daily spot time charter equivalent earnings (âTCEsâ)(1) for
VLCCs, Suezmax tankers and LR2/Aframax tankers in the first quarter of
$103,500, $72,400 and $50,700 per day, respectively.
- Delivered eight of our oldest first-generation ECO VLCCs, built between
2015 and 2016, to an unrelated third party in the first quarter of 2026,
resulting in a gain on sale of $210.9 million.
- Entered into a senior secured revolving reducing credit facility and secured
a commitment for a senior secured term loan facility in April and May 2026
totaling up to $737.0 million to partially finance the nine latest
generation scrubber-fitted ECO VLCC newbuildings acquired from affiliates of
Hemen Holding Limited, the Companyâs largest shareholder (âHemenâ).
- Entered into agreements to sell our two oldest Suezmax tankers built in
2014 and 2015 in April 2026 for a total sales price of $140.0 million.
- Entered into one and secured commitment for another senior secured revolving
reducing credit facility in May 2026 totaling up to $237.5 million to
refinance the outstanding debt on three VLCCs and additionally, provide
revolving credit capacity totaling up to $88.8 million.
- Entered into two one-year time charter-out agreements for two VLCC
newbuildings delivered on April 30, 2026, and May 20, 2026, at a rate of
$110,000 per day per vessel.
Lars H. Barstad, Chief Executive Officer of Frontline Management AS, commented:
"The first quarter of 2026 was marked by high volatility. Tanker markets are
said to thrive in unstable conditions, and the effective closure of the Strait
of Hormuz led to rapid shifts in trading patterns and ownersâ behavior. While
removing roughly one-fifth of global seaborne oil exports was expected to
materially weaken markets, increased ton-miles, longer trade lanes, and broader
inefficiencies supported vessel utilization and kept Frontlineâs earnings strong
throughout the quarter. Despite the opaque situation in the Middle East, the
fundamentally firm market has carried into the second quarter, and Frontline has
sought to secure parts of its near-term revenues during these extraordinary
market conditions.
We are increasingly constructive on the longer-term outlook, believing
heightened global focus on energy security, together with more diversified oil
sourcing by key importers in Asia, will benefit the tanker market for years to
come. With its efficient business model and substantial tanker exposure,
Frontline is ready to continue optimizing shareholder returns as we proceed."
Inger M. Klemp, Chief Financial Officer of Frontline Management AS, added:
"In the second quarter of 2026 we have entered into one and secured commitment
for another loan facility totaling up to $737.0 million to partially finance the
nine latest generation scrubber-fitted ECO VLCC newbuildings acquired from
Hemen. We have also entered into one and secured commitment for another loan
facility totaling up to $237.5 million to refinance the outstanding debt on
three VLCCs, and additionally, provide revolving credit capacity totaling up to
$88.8 million.
We believe the new financing and the refinancing of existing debt have been
achieved at highly attractive terms, further strengthening our liquidity
position while reducing our borrowing costs and cash breakeven rates. We
continue to focus on maintaining our competitive cost structure, breakeven
levels and solid balance sheet to ensure that we are well positioned to generate
significant cash flow and create value for our shareholders."
Average daily TCEs and estimated cash breakeven rates
Âą------------------------------------Âą--------------Âą--------Âą-------------+
| | | | Estimated |
| | | |average daily |
| | Spot TCE | |cash breakeven|
| | currently | |rates for the |
| ($ per day) Spot TCE | contracted |% Covered|next 12 months|
Âą------------------------------------Âą--------------Âą--------Âą-------------+
| Q1 2026 Q4 2025 Q1 2025| Q2 2026 | |
| | | |
|VLCC 103,500 74,200 37,200 | 181,700 82% | 24,300 |
| | | |
|Suezmax 72,400 53,800 31,200 | 131,300 79% | 24,300 |
| | | |
|LR2 / Aframax 50,700 33,500 22,300 | 125,000 68% | 23,600 |
Âą------------------------------------Âą------------------------Âą-------------+
We expect the spot TCEs for the full second quarter of 2026 to be lower than the
spot TCEs currently contracted, due to the impact of ballast days during the
second quarter of 2026. See Appendix 1 for further details.
The Board of Directors
Frontline plc
Limassol, Cyprus
May 21, 2026
Ola Lorentzon - Chairman and Director
John Fredriksen - Director
James O'Shaughnessy - Director
Cato Stonex - Director
Dr. Maria Papakokkinou - Director
Mikkel Storm Weum - Director
Questions should be directed to:
Lars H. Barstad: Chief Executive Officer, Frontline Management AS
+47 23 11 40 00
Inger M. Klemp: Chief Financial Officer, Frontline Management AS
+47 23 11 40 00
Forward-Looking Statements
Matters discussed in this report may constitute forward-looking statements. The
Private Securities Litigation Reform Act of 1995 provides safe harbor
protections for forward-looking statements, which include statements concerning
plans, objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements, which are other than statements of
historical facts.
Frontline plc and its subsidiaries, or the Company, desire to take advantage of
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995 and is including this cautionary statement in connection with this safe
harbor legislation. This report and any other written or oral statements made by
us or on our behalf may include forward-looking statements, which reflect our
current views with respect to future events and financial performance and are
not intended to give any assurance as to future results. When used in this
document, the words âbelieve,â âanticipate,â âintend,â âestimate,â âforecast,â
âproject,â âplan,â âpotential,â âwill,â âmay,â âshould,â âexpectâ and similar
expressions, terms or phrases may identify forward-looking statements.
The forward-looking statements in this report are based upon various
assumptions, including without limitation, managementâs examination of
historical operating trends, data contained in our records and data available
from third parties. Although we believe that these assumptions were reasonable
when made, because these assumptions are inherently subject to significant
uncertainties and contingencies which are difficult or impossible to predict and
are beyond our control, we cannot assure you that we will achieve or accomplish
these expectations, beliefs or projections. We undertake no obligation to update
any forward-looking statements, whether as a result of new information, future
events or otherwise.
In addition to these important factors and matters discussed elsewhere herein,
important factors that, in our view, could cause actual results to differ
materially from those discussed in the forward-looking statements include:
- the strength of world economies;
- fluctuations in currencies and interest rates, including inflationary
pressures and central bank policies intended to combat overall inflation and
high interest rates and foreign exchange rates;
- the impact that any discontinuance, modification or other reform or the
establishment of alternative reference rates have on the Companyâs floating
interest rate debt instruments;
- general market conditions, including fluctuations in charter hire rates and
vessel values;
- changes in the supply and demand for vessels comparable to ours and the
number of newbuildings under construction;
- supply chain disruptions affecting shipyards, spare parts or critical
equipment, including delays in newbuilding deliveries or vessel maintenance;
- the highly cyclical nature of the industry that we operate in;
- the loss of a large customer or significant business relationship;
- changes in worldwide oil production and consumption and storage;
- changes in OPEC and non-OPEC production decisions and geopolitical
developments affecting oil supply
- and trade flows;
- changes in the Companyâs operating expenses, including bunker prices, dry
docking, crew costs and insurance costs;
- planned, pending or recent acquisitions, business strategy and expected
capital spending or operating expenses, including dry docking, repairs,
surveys and upgrades;
- risks associated with any future vessel construction;
- our expectations regarding the availability of vessel acquisitions and our
ability to complete vessel acquisition transactions as planned;
- our ability to successfully compete for and enter into new time charters or
other employment arrangements for our existing vessels after our current
time charters expire and our ability to earn income in the spot market;
- availability of financing and refinancing, our ability to obtain financing
and comply with the restrictions and other covenants in our financing
arrangements;
- availability of skilled crew members and other employees and the related
labor costs;
- work stoppages or other labor disruptions by our employees or the employees
of other companies in related industries;
- compliance with governmental, tax, environmental and safety regulation, any
non-compliance with U.S. European Union and other international regulations;
- the impact of increasing scrutiny and changing expectations from investors,
lenders and other market participants with respect to our Environmental,
Social and Governance policies;
- compliance with the Foreign Corrupt Practices Act of 1977 or other
applicable regulations relating to bribery;
- general economic conditions and conditions in the oil industry;
- effects of new products and new technology in our industry, including the
potential for technological innovation to reduce the value of our vessels
and charter income derived therefrom;
- new environmental regulations and restrictions, whether at a global level
stipulated by the International Maritime Organization, and/or imposed by
regional or national authorities such as the European Union or individual
countries;
- vessel breakdowns and instances of off-hire;
- cost and effects of cybersecurity incidents or other failures,
interruptions, or security breaches of our systems or those of our customers
or third-party providers, including software failures, unforeseeable
security breaches, or incidents stemming from the misuse of intentional or
unintentional misapplication of artificial intelligence in our business;
- our ability to successfully adopt artificial intelligence and digital
logistics into our operating systems;
- risks associated with potential cybersecurity or other privacy threats and
data security breaches;
- potential conflicts of interest involving members of our Board of Directors
and senior management;
- the failure of counter parties to fully perform their contracts with us;
- changes in credit risk with respect to our counterparties on contracts;
- our dependence on key personnel and our ability to attract, retain and
motivate key employees;
- adequacy and cost of insurance coverage;
- our ability to obtain indemnities from customers;
- changes in laws, treaties or regulations;
- the volatility of the price of our ordinary shares;
- our incorporation under the laws of Cyprus and the different rights to
relief that may be available compared to other countries, including the
United States;
- changes in governmental rules and regulations or actions taken by regulatory
authorities;
- government requisition of our vessels during a period of war or emergency;
- potential liability from pending or future litigation and potential costs
due to environmental damage and vessel collisions;
- the arrest of our vessels by maritime claimants;
- general domestic and international political conditions or events, including
âtrade warsâ;
- any further changes in U.S. trade policy that could trigger retaliatory
actions by the affected countries;
- potential disruption of shipping routes due to accidents, environmental
factors, political events, public health threats, international sanctions
and international hostilities including the war between Russia and Ukraine
and the developments in the Middle East, including vessel attacks at key
maritime transit regions, such as the Red Sea, Gulf of Aden and Strait of
Hormuz, acts of terrorism, piracy, cyber threats or other security risks
affecting ocean-going vessels or maritime infrastructure;
- the impact of restriction on trade, including the imposition of new tariffs,
port fees and other import restrictions by the United States on its trading
partners and the imposition of retaliatory tariffs by China and the European
Union on the United States, and potential further protectionist measures
and/or further retaliatory actions by others, including the imposition of
tariffs or penalties on vessels calling in key export and import ports such
as the United States, European Union and/or China;
- the length and severity of epidemics and pandemics and their impact on the
demand for seaborne transportation of crude oil and refined products;
- the impact of port or canal congestion;
- business disruptions due to adverse weather, natural disasters or other
disasters outside our control; and
- other important factors described from time to time in the reports filed by
the Company with the U.S Securities and Exchange Commission.
We caution readers of this report not to place undue reliance on these forward-
looking statements, which speak only as of their dates. These forward-looking
statements are no guarantee of our future performance, and actual results and
future developments may vary materially from those projected in the forward-
looking statements.
This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act.
(1) This press release describes Time Charter Equivalent earnings and related
per day amounts and spot TCE currently contracted, which are not measures
prepared in accordance with IFRS (ânon-GAAPâ). See Appendix 1 for a full
description of the measures and reconciliation to the nearest IFRS measure.
Kilde
