Here is Why Frontline (FRO) Gained This Week

Core Viewpoint - Frontline plc (NYSE:FRO) experienced a significant share price increase of 11.85% from January 22 to January 29, 2026, making it one of the top-performing energy stocks during that week [1]. Company Developments - Frontline plc is a global shipping company specializing in the ownership and operation of oil and product tankers [2]. - On January 26, 2026, Frontline announced the signing of 1-year time charter-out agreements for seven of its Very Large Crude Carriers (VLCCs), starting from late January to April 2026, at a daily rate of $76,900 per vessel. The counterparty for this deal is reportedly South Korea's Sinokor Maritime [3]. - CEO Lars H. Barstad highlighted that the current charter rates are unprecedented and not seen for decades, indicating that Frontline remains largely exposed to spot market fluctuations after these contracts take effect, which positions the company to benefit from a volatile market [3]. Market Analysis - Analyst Kristoffer Barth Skeie from Arctic Securities noted that the charter rate is 7% above recent broker quotes, marking a new high in the time-charter market. This development has significantly reduced Frontline's risk exposure, with time-charter coverage for the VLCC fleet projected to increase to 8% in Q1 2026, 24% in Q2 and Q3, 23% in Q4, and 15% in Q1 2027, compared to only one vessel on long-term charter prior to these agreements [4]. Performance Overview - Over the past year, Frontline plc's share price has surged by more than 63%, indicating strong performance in the market [5].