LONDON - Frontline plc (NYSE:FRO), a global leader in the seaborne transportation of crude oil and refined products, reported its unaudited financial results for the first quarter ended March 31, 2024.
The company announced a significant revenue beat with figures reaching $578.4 million, surpassing the analyst consensus estimate of $394.28 million. However, the adjusted earnings per share (EPS) for the quarter stood at $0.62, falling short of the analyst expectations of $0.84.
The announcement was followed by a modest stock price increase of +0.6% following the announcement.
Lars H. Barstad, Chief Executive Officer of Frontline Management AS, highlighted the company's operational efficiency and the smooth integration of new vessels into its fleet.
"Our first quarter earnings were solid, as markets remained firm throughout the quarter, and LR2 rates offered proper volatility as returns reached six digits in January 2024," Barstad said. The company's strategy of expanding its vessel exposure and disposing of older, less eco-friendly ships has been instrumental in its first-quarter performance.
Frontline's strategic moves, including the delivery of 13 Very Large Crude Carriers (VLCCs) from Euronav (NYSE:EURN) NV and the sale of its five oldest VLCCs and two Suezmax tankers, have positioned the company to capitalize on the market's firmness. Additionally, the refinancing of eight LR2 tankers, generating net cash proceeds of approximately $139.0 million, reflects the company's proactive financial management.
Inger M. Klemp, Chief Financial Officer of Frontline Management AS, commented on the company's financial strategy, stating, "The net cash proceeds of approximately $692.0 million expected to be generated from the sales and refinancing of vessels enabled us in April 2024 to repay the $100.0 million drawn under the $275.0 million senior unsecured revolving credit facility with an affiliate of Hemen and will enable us to repay the $295.0 million drawn under the Hemen shareholder loan in relation to the Acquisition."
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.