Frontline shares sail forward on sizeable revenue beat
Shares of Frontline (NYSE:FRO) surged as much as 7% by late-afternoon trading on Wednesday after reporting third quarter results.
The shipping tanker company posted Q3 revenue of $382.2M, which more than doubled and beat consensus by over $150 million. However its EPS of 37 cents a share missed estimates by just 1 cent.
In the third quarter, Frontline achieved $25,000 per day on its VLCC fleet, $41,100 per day on Suezmax fleet and $40,200 per day on LR2/Aframax fleet, the company said.
"We estimate average cash cost breakeven rates for the remainder of 2022 of approximately $25,000 per day for VLCCs; 20,200 per day for Suezmax tankers, and $17,200 per day for LR2 tankers, which with a fleet average estimate of $20,900 per day" - CFO Inger Klemp during earnings call
FRO board also announced its intention to declare and pay third quarter cash dividend, which is expected to be 80% of the reported adjusted net income, CFO Klemp added.
In the fourth quarter, the company anticipates spot TCEs to be lower than TCEs contracted presently, as it expects impact of ballast days at Q4 end.
FRO stock has more than doubled in the last one year, while the S&P 500 energy index recorded a 64% rise for the same period.
