Frontline plc Q2 2025 Earnings Call Highlights: Tanker Market Sees Contours of Change Amid Global Conflict and Trade Policies

Frontline plc reported Q2 2025 earnings with VLCC fleet TCE at $43,100 per day, Suezmax fleet TCE at $38,900 per day, and LR2/Aframax fleet TCE at $29,300 per day. CEO Lars Barstad noted that global oil demand growth has surpassed sanctioned molecules, benefiting the compliant fleet. However, TCE numbers are slightly short of expectations. In the third quarter, 82% of VLCC days are booked at $38,700 per day, and 76% of Suezmax days are booked at $37,300 per day.

Title: Frontline plc Reports Mixed Q2 2025 Results; CEO Optimistic for Future

Frontline plc (the “Company,” “Frontline,” “we,” “us,” or “our”), a leading global tanker operator, reported its unaudited results for the six months ended June 30, 2025. The company reported a profit of $77.5 million, or $0.35 per share, for the second quarter of 2025, with an adjusted profit of $80.4 million, or $0.36 per share. Revenues for the second quarter totaled $480.1 million.

The company's VLCC fleet achieved an average daily spot time charter equivalent (TCE) of $43,100, while the Suezmax and LR2/Aframax fleets reported $38,900 and $29,300 per day, respectively. CEO Lars H. Barstad commented on the volatile market conditions, noting that growing unrest in the Middle East and increased sanctions on Russia have affected tanker trade and freight. Despite these challenges, the company expects a gradual increase in utilization for the compliant tanker trade during the first half of 2025.

For the third quarter of 2025, 82% of VLCC days are booked at $38,700 per day, and 76% of Suezmax days are booked at $37,300 per day. The company expects spot TCEs for the full third quarter of 2025 to be lower than the spot TCEs currently contracted, due to the impact of ballast days during the third quarter.

Frontline also entered into a senior secured term loan facility in April 2025, with an amount up to $1,286.5 million, to refinance the outstanding debt on 24 VLCCs approximately three and a half years prior to maturity. The company expects this transaction to reduce the margin and improve its financial position. Additionally, Frontline sold its oldest Suezmax tanker, built in 2011, for a net sales price of $36.4 million, which is expected to generate net cash proceeds of approximately $23.7 million in the third quarter of 2025.

The company's forward-looking statements, as required by the Private Securities Litigation Reform Act of 1995, include potential risks such as fluctuations in charter hire rates, changes in the supply and demand for vessels, and the impact of sanctions on oil trade. Frontline's Board of Directors, led by Chairman Ola Lorentzon, will continue to monitor these factors and adapt its strategies accordingly.

References
[1] https://www.frontlineplc.cy/fro-second-quarter-and-six-months-2025-results/