FRO – Third Quarter and Nine Months 2025 Results

Core Insights - Frontline plc reported a profit of $40.3 million, or $0.18 per share, for Q3 2025, with adjusted profit at $42.5 million, or $0.19 per share, alongside revenues of $432.7 million [6] - The company declared a cash dividend of $0.19 per share for the third quarter of 2025 [6] - The freight markets, particularly for VLCCs, showed strength as the quarter progressed, with global oil demand remaining resilient [2] Financial Performance - Average daily spot time charter equivalent (TCE) earnings for VLCCs, Suezmax tankers, and LR2/Aframax tankers in Q3 2025 were $34,300, $35,100, and $31,400 respectively [6] - The company converted $405.5 million in term loan balances into revolving credit facilities, allowing for efficient cash management and a reduction in average cash breakeven rates by approximately $1,300 per day for the next 12 months [3][6] - The sale of the oldest Suezmax tanker generated net cash proceeds of approximately $23.7 million after debt repayment [6] Market Conditions - The third quarter began with typical seasonal trends but saw strengthening freight markets, particularly for VLCCs, as the quarter progressed [2] - The U.S. moved past peak refinery runs, while India reduced its intake of Russian feedstock, creating a ton-mile intensive arbitrage opportunity between the Americas and Asia [2] - The gradual reversal of OPEC+ production cuts is beginning to reflect in higher export volumes, indicating strong fundamentals as the company enters the winter market [2]