Frontline plc reported unaudited results for the six months ended June 30, 2026:
Highlights
- Reported the best quarterly profit ever of $659.2 million, or $2.96 per share for the second quarter of 2026 and the best adjusted profit ever of $580.2 million for the second quarter of 2026, or $2.61 per share.
- Declared a cash dividend of $2.61 per share for the second quarter of 2026.
- Reported revenues of $943.3 million for the second quarter of 2026.
- Achieved average daily spot time charter equivalent earnings (“TCEs”)1 for VLCCs, Suezmax tankers and LR2/Aframax tankers in the second quarter of $152,700, $111,500 and $92,400 per day, respectively.
- Reduced financing costs through a combination of margin reductions on existing facilities and full refinancing of selected facilities, reducing the Company’s weighted average interest rate margin by approximately 52 basis points (“bps”) from 178 bps at the end of the first quarter of 2026 to 126 bps upon completion of the process in the third quarter of 2026.
- Entered into agreements to sell two VLCCs built in 2017 in July 2026 for a total sales price of $270.0 million. Subject to the completion of the sales, the total cash proceeds from the sales of approximately $179.0 million will be returned to shareholders through the payment of a special one-time dividend of $0.80 per share.
- Delivered our two oldest Suezmax tankers built in 2014 and 2015 in the second quarter of 2026, resulting in a gain on sale of $54.7 million.
- Entered into two one-year time charter-out agreements for two VLCC newbuildings delivered on June 22, 2026 and July 3, 2026, at a rate of $120,000 per day per vessel.
- Entered into time charter-out agreements for two VLCCs, both built in 2016, for periods of two and three years at average rates of $90,000 and $75,000 per day, respectively, commencing in August 2026.
Lars H. Barstad, Chief Executive Officer of Frontline Management AS, commented:
“The second quarter of 2026 continued to be volatile. The entire energy complex is being challenged, creating inefficiencies that support tanker utilization. While the fundamental story of oil demand versus vessel supply has temporarily taken a back seat, Frontline remains focused on capturing near-term value for our shareholders.
Currently, it is difficult to see the ultimate endgame of the ongoing conflict in the Middle East, but our conviction regarding its longer-term effects remains firm. Energy supply security will increasingly dominate strategic decisions, altering trade lanes. At the same time, the need to replenish oil inventories should create material tailwinds for tankers.
Frontline continues to capitalize on these markets into the third quarter, with an increased focus on securing revenue visibility at historically high levels.”
Inger M. Klemp, Chief Financial Officer of Frontline Management AS, added:
“In the second and third quarters of 2026, we reduced our financing costs through a combination of margin reductions on existing facilities for their remaining tenors and full refinancing of selected facilities, reducing the Company’s weighted average interest rate margin by approximately 52 bps from 178 bps at the end of the first quarter of 2026 to 126 bps upon completion of the process in the third quarter of 2026.
We believe that the refinancing of, and amendments to, our existing debt facilities have been achieved on highly attractive terms, further strengthening our liquidity position while reducing our borrowing costs and cash breakeven rates. We continue to focus on maintaining our competitive cost structure, breakeven levels and solid balance sheet to ensure that we are well positioned to generate significant cash flow and create value for our shareholders.”