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Frontline Posts $559 Million Q1 Profit as Hormuz Disruptions Lift Tanker Rates

Disruptions around the Strait of Hormuz lengthened voyages, raised ton‑mile demand, pushed up spot rates, enabling Frontline to declare a large dividend, sell older ships, finance newbuilds.

Overview

  • Frontline reported first‑quarter net income of $559.1 million and adjusted earnings of $1.55 per share, with revenue of $714.2 million that beat analyst estimates.
  • Higher time‑charter equivalent earnings powered the gain, with average daily spot TCEs of about $103,500 for VLCCs, $72,400 for Suezmaxes, and $50,700 for LR2/Aframax ships.
  • CEO Lars H. Barstad said disruptions tied to the Strait of Hormuz lengthened trade routes and raised ton‑mile demand, which amplified spot rates and vessel utilization during the quarter.
  • The company declared a $1.55 quarterly cash dividend, booked a $210.9 million gain from selling eight older ECO VLCCs, and agreed to sell two Suezmaxes for $140 million with an expected Q2 gain.
  • Frontline is expanding and modernizing its fleet by ordering nine scrubber‑fitted ECO VLCC newbuilds and securing more than $970 million in financing while warning average rates could moderate if ballast days rise or Middle East flows normalize.