Frontline Share Discussion Threads

[sanks] 26/2/2013 18:11

just wondering if its shagged

[energyi] 19/11/2012 15:03

Frontier Rare Earths, trading on the Toronto exchange

[steeplejack] 17/3/2012 09:16

Speaking of consumers feeling pain at the pump, one potential beneficiary of persistently high oil prices looks to be tanker company Frontline (Nasdaq: FRO ) . Shares were up 23% today after the company acknowledged increased demand from China, while Bloomberg notes that rates for VLCC's rose a remarkable 87% in the Atlantic Basin, with the Suezmax not far behind at an 82% increase on thin supply. Although there is talk the rate jump is nothing more than a temporary blip, if the global economy is in real recovery than Frontline could be well positioned to take advantage.

[harrybigdick] 25/5/2011 23:12

Frontline Slumps to Seven-Year Low as Oil Tankers Lose Money
May 25, 2011

Frontline Ltd., the world's biggest operator of supertankers, slumped to a seven-year low in Oslo trading as the company said its ships operated at a loss in the first quarter and the next three months may be no different.

The shares fell as much as 4.5 percent to 100.7 kroner, the lowest compared with intraday prices since May 2004, and were at that price as of 10:30 a.m. local time. The stock plunged 33 percent this year, valuing the Hamilton, Bermuda-based company at 7.86 billion kroner ($1.41 billion).

Frontline said first-quarter net income fell 81 percent to $15.5 million, or 20 cents a share, better than the loss of $572,000 anticipated by the median of 10 analysts' estimates compiled by Bloomberg. The "weak trend" of the quarter will probably extend into the next period and the company may sell vessels, Frontline said in a statement on its website today.

"They are retaining all the cash they can," said Erik Nikolai Stavseth, an analyst at Arctic Securities ASA in Oslo, who has a "sell" recommendation on the shares. "They are basically saying 'we are going to sit down and try to weather the storm'."

Returns on supertankers that reached $177,036 a day in July 2008 were last at $8,900, according to the London-based Baltic Exchange, which publishes daily rates for more than 50 maritime routes. Frontline needs $29,700 to break even on its vessels. The surge in rates in 2007 and 2008 spurred owners to order more ships, on the eve of the worst global recession since World War II. Those vessels are now leaving shipyards, swelling the tanker fleet faster than demand.

Tankers Unprofitable

Oil tankers may be unprofitable for five more years before a glut that caused a 95 percent slump in returns since 2008 is eroded, Tor Olav Troeim, an alternate director at Frontline, told a conference in Oslo yesterday.

Oil-tanker owners have responded to the slump in rates by cutting their speeds from an average of 10.8 knots in July 2008 to 8.8 knots now, according to ship-tracking data compiled by Bloomberg. There are more than 600 tankers anchored globally, up from about 350 three years ago, the data show.

The glut will take time to erode because only 10 percent of the fleet is more than 15 years old, reducing the speed of demolitions, Troeim said in an interview after his speech in Oslo. By contrast, a quarter of the dry bulk fleet hauling coal and iron ore is more than 20 years old, he said. The slump in dry bulk shipping may be over in three years, Troeim said.

Frontline earned an average of $28,600 a day for each of its very large crude carriers in the first quarter, down from $45,300 a year earlier, according to a presentation on the company's website. Returns on smaller suezmaxes averaged $17,300, compared with $31,800 a year earlier. The break-even rate for suezmaxes is $24,700, Frontline said.

[pb10] 16/10/2008 16:41

current yeild 32% time to nibble at a few.3rd q results 28/11

[pb10] 28/8/2008 16:32

Holding up very well in a bum market divi of $3 paid 19/09!

[pb10] 23/6/2008 20:30

clearsoup hello, it is indeed!! divi day 25th possible float off of sealift early next yr

[clearsoup] 18/6/2008 22:58

What a dead thread, what a great share!

[pb10] 25/2/2008 12:04

zut Usually around 10% wait for a drop to £17/18.I hold these for income medium to long term

[zutalors] 22/2/2008 15:17

INTERESTING VIEW PB10. IS THE SPREAD ON THIS ALWAYS SO WIDE ?

[pb10] 22/2/2008 11:41

zut if it does it wont stay down for long just another buying opp
pb10

[zutalors] 21/2/2008 17:10

This means the share price will be marked down 20% on 26 Feb, does it ?

[pb10] 21/2/2008 09:28

Another payout via 1 for 5 ITC shares dont you just love it!!!

[clearsoup] 15/2/2008 11:08

Glad I didn't sell in June

[pb10] 15/2/2008 09:35

FRO has held up well in the turmoil, dont you just love these divis!

[wassapper] 14/2/2008 08:08

Spot rates up for the last quarter and a $2.00 divi for March. Nice.

[blobby] 10/1/2008 16:36

hi PB10, this is still on my watch list... I just can't remember why!

[pb10] 10/10/2007 13:43

$1.5 qtr divi + special $1.75 I love this share!

[pb10] 03/9/2007 09:21

14% divi and future spin outs new vessels coming on stream looks good for 30gpb by april 08 only cloud is bombing of Iran and possible blockade of Hormuz. Any one out there?

[clearsoup] 19/6/2007 10:03

Join the Academy!

[blobby] 19/6/2007 09:30

no view on this at the moment but keen to learn.

[clearsoup] 12/6/2007 16:14

Calling out....
Am getting positioned for asset price bubble to burst. The question is: are VLCC rate-charts looking as bubbly as many other indicators? If not, is FRO a reasonable defensive holding?

[elsworth] 15/5/2006 20:37

Heading to £7.........

[elsworth] 19/3/2006 17:50

Will they go any lower.....seems a possibility!!!!!