- Frontline Ltd (NYSE:FRO) reported a first-quarter operating revenue increase of 12.1% year-over-year to $217.44 million.
- Reported spot TCEs for VLCCs, Suezmax tankers, and LR2 tankers in Q1 were $15,700, $16,900, and $19,000 per day, respectively.
- Net operating income decreased by 7.2% Y/Y to $22.92 million, and the margin contracted by 220 bps to 10.5%.
- Related: H.C. Wainwright Raises Frontline's Price Target Post Merger Announcement
- In April, the company announced a potential stock-for-stock combination between Frontline and Euronav NV (NYSE:EURN) to create a global independent oil tanker operator owning and operating 67 VLCC, 56 Suezmax vessels, and 18 LR2/Aframax vessels.
- Adjusted EPS loss was $(0.01) from $0.04 profit in 1Q21.
- As of March 31, 2022, the fleet consisted of 68 vessels with ~12.5 million DWT aggregate capacity.
- Net cash provided by operating activities totaled $17.34 million for Q1, compared to $12 million a year ago.
- 2Q22 Outlook: Frontline estimates spot TCE on a load-to discharge basis of $22,600 contracted for 74% of vessel days for VLCCs, $32,700 contracted for 70% of vessel days for Suezmax tankers, and $46,300 contracted for 58% of vessel days for LR2 tankers.
- Price Action: FRO shares are trading higher by 2.00% at $9.18 on the last check Tuesday.
