Frontline(US:FRO)2025-11-21 21:16Financial Performance - The company reported a profit of $40.3 million, or $0.18 per share, for the third quarter of 2025, down from a profit of $77.5 million in the previous quarter[13][16]. - Adjusted profit for the third quarter was $42.5 million, compared to $80.4 million in the previous quarter, primarily due to a decrease in Time Charter Equivalent (TCE) earnings from $283.0 million to $248.2 million[16]. - Revenues for the third quarter were reported at $432.7 million[13]. - Revenues for Q3 2025 reached $490.318 million, compared to $432.654 million in Q3 2024, representing a 13.5% increase[41]. - Net operating income for Q3 2025 was $144.811 million, up from $95.967 million in Q3 2024, reflecting a 51% increase[41]. - Profit for the period in Q3 2025 was $60.457 million, compared to $40.319 million in Q3 2024, marking a 50% increase[41]. - Basic and diluted earnings per share for Q3 2025 were $0.27, compared to $0.18 in Q3 2024, indicating a 50% increase[41]. - Total revenues for FY 2025 reached $1,340,597, a decrease from $2,050,385 in FY 2024, reflecting a year-over-year decline of approximately 34.6%[50]. - Profit for Q3 2025 was $151,149, compared to $60,457 in Q3 2024, representing an increase of approximately 149.9%[47]. - Adjusted profit for FY 2025 was $163,239, up from $396,642 in FY 2024, indicating a decrease of about 58.8%[47]. - Total Time Charter Equivalent (TCE) for FY 2025 was $772,191, down from $1,269,031 in FY 2024, a decline of approximately 39.1%[50]. - The average daily TCE rate for VLCCs in Q3 2025 was $38,200, compared to $39,600 in Q3 2024, a decrease of about 3.5%[53]. - The company reported cash dividends of $164,741 in Q3 2025, down from $358,423 in Q3 2024, reflecting a reduction of approximately 54.0%[47]. Assets and Liabilities - Total assets decreased to $5.710 billion as of September 30, 2025, down from $6.221 billion at the end of 2024[42]. - Cash and cash equivalents fell to $189.427 million as of September 30, 2025, compared to $413.532 million at the end of 2024[42]. - Total current liabilities decreased to $438.295 million as of September 30, 2025, down from $595.653 million at the end of 2024[42]. - Long-term debt reduced to $2.946 billion as of September 30, 2025, compared to $3.284 billion at the end of 2024[42]. - The balance of retained earnings at the end of Q3 2025 was $493,875, a decrease from $516,426 at the end of Q3 2024, representing a decline of about 4.0%[45]. - The total equity attributable to the company as of Q3 2025 was $2,325,688, a slight decrease from $2,348,440 in Q3 2024, indicating a reduction of approximately 1.0%[45]. Operational Metrics - Average daily spot TCE earnings for VLCCs, Suezmax tankers, and LR2/Aframax tankers were $34,300, $35,100, and $31,400, respectively[13]. - The company had 1,053 contracted ballast days for VLCCs at the end of Q3 2025, indicating ongoing operational commitments[55]. Market Overview - Global oil consumption averaged 104.8 million barrels per day in Q3 2025, an increase of 0.8 mbpd from the previous quarter[17]. - Global oil supply averaged 107.4 mbpd in Q3 2025, an increase of 2.4 mbpd compared to the previous quarter[18]. - The tanker order book for the asset classes owned by the company is now 20.3% of the existing global fleet, with 135 VLCCs, 111 Suezmax tankers, and 162 LR2 tankers on order[21]. Dividend Information - The company declared a cash dividend of $0.19 per share for the third quarter, with a record date of December 12, 2025[26]. Credit Facilities - The company converted seven existing credit facilities totaling $405.5 million into revolving credit facilities of up to $493.4 million, leading to a reduction in cash break-even rates by approximately $1,300 per day for the next 12 months[12][28]. Comprehensive Income - The company reported a comprehensive income of $60.206 million for Q3 2025, compared to $39.140 million in Q3 2024, reflecting a 54% increase[41]. Derivatives - The unrealized loss on derivatives for Q3 2025 was $12,501, compared to an unrealized loss of $14,698 in Q3 2024, showing an improvement of about 14.9%[47].