Frontline plc announced its first-quarter 2026 results on May 22, reporting its strongest quarterly adjusted profit since Q4 2004, driven by soaring tanker rates due to Middle East trade route disruptions. The company declared a quarterly cash dividend of $1.55 per share for shareholders.
The financial report shows that Frontline achieved a net profit of $559.1 million, or $2.51 per share, for the quarter. Adjusted profit reached $344.9 million, or $1.55 per share, a significant increase from $40.38 million in the same period last year. Revenue grew 67% year-over-year to $714.2 million.
The surge in performance primarily stemmed from high earnings in the spot market for Very Large Crude Carriers (VLCCs), Suezmax tankers, and LR2/Aframax tankers. The average daily earnings for these vessel types in the first quarter were $103,500, $72,400, and $50,700, respectively. Additionally, the company recorded a gain of $210.9 million from the sale of eight older VLCCs.
The effective closure of the Strait of Hormuz has increased ton-mile demand, impacting approximately one-fifth of global seaborne crude oil exports. This situation has, in turn, supported vessel utilization and freight rates. Frontline's CEO, Lars H. Barstad, stated that the market was highly volatile during the quarter, but extended trade routes and overall reduced efficiency have allowed the company to maintain strong profitability. He further noted the company's increasing optimism about the long-term outlook, as global focus on energy security is expected to benefit the tanker market for years to come.
The report also disclosed that Frontline signed an agreement in April to sell its two oldest Suezmax tankers for a total of $140 million. The transaction is expected to generate approximately $55 million in gains during the second quarter.
According to the announcement, the record date for the $1.55 per share dividend is June 12, with the payment date set for June 23.
Comments