FRONTLINE PLC REPORTS RESULTS FOR THE SECOND QUARTER ENDED JUNE 30, 2026
Frontline plc (the "Company", "Frontline," "we," "us," or "our"), today 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."
Average daily TCEs and estimated cash breakeven rates
Estimated
average
daily cash
breakeven
Spot TCE rates for
currently the next
($ per day) Spot TCE contracted % Covered 12 months
-------------- ------------------------- ----------- --------- -----------
2026 Q2 2026 Q1 2026 Q3 2026
VLCC 124,600 152,700 103,500 156,900 86% 23,800
Suezmax 91,700 111,500 72,400 117,400 79% 25,700
LR2 / Aframax 71,700 92,400 50,700 81,000 70% 22,200
------- ------- ------- ----------- --------- -----------
We expect the spot TCEs for the full third quarter of 2026 to be lower than the spot TCEs currently contracted, due to the impact of ballast days during the third quarter of 2026. See Appendix 1 for further details.
The Board of Directors
Frontline plc
Limassol, Cyprus
August 27, 2026
Ola Lorentzon - Chairman and Director
John Fredriksen - Director
James O'Shaughnessy - Director
Cato Stonex - Director
Dr. Maria Papakokkinou - Director
Mikkel Storm Weum - Director
Questions should be directed to:
Lars H. Barstad: Chief Executive Officer, Frontline Management AS
+47 23 11 40 00
Inger M. Klemp: Chief Financial Officer, Frontline Management AS
+47 23 11 40 00
Forward-Looking Statements
Matters discussed in this report may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements, which include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.
Frontline plc and its subsidiaries, or the Company, desire to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. This report and any other written or oral statements made by us or on our behalf may include forward-looking statements, which reflect our current views with respect to future events and financial performance and are not intended to give any assurance as to future results. When used in this document, the words "believe," "anticipate," "intend," "estimate," "forecast," "project," "plan," "potential," "will," "may," "should," "expect" and similar expressions, terms or phrases may identify forward-looking statements.
The forward-looking statements in this report are based upon various assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
In addition to these important factors and matters discussed elsewhere herein, important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include:
-- the strength of world economies;
-- fluctuations in currencies and interest rates, including inflationary
pressures and central bank policies intended to combat overall inflation
and high interest rates and foreign exchange rates;
-- the impact that any discontinuance, modification or other reform or the
establishment of alternative reference rates have on the Company's
floating interest rate debt instruments;
-- general market conditions, including fluctuations in charter hire rates
and vessel values;
-- changes in the supply and demand for vessels comparable to ours and the
number of newbuildings under construction;
-- supply chain disruptions affecting shipyards, spare parts or critical
equipment, including delays in newbuilding deliveries or vessel
maintenance;
-- the highly cyclical nature of the industry that we operate in;
-- the loss of a large customer or significant business relationship;
-- changes in worldwide oil production and consumption and storage;
-- changes in OPEC and non-OPEC production decisions and geopolitical
developments affecting oil supply and trade flows;
-- changes in the Company's operating expenses, including bunker prices, dry
docking, crew costs and insurance costs;
-- planned, pending or recent acquisitions, business strategy and expected
capital spending or operating expenses, including dry docking, repairs,
surveys and upgrades;
-- risks associated with any future vessel construction;
-- our expectations regarding the availability of vessel acquisitions and
our ability to complete vessel acquisition transactions as planned;
-- our ability to successfully compete for and enter into new time charters
or other employment arrangements for our existing vessels after our
current time charters expire and our ability to earn income in the spot
market;
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