Frontline plc announced its unaudited financial results for the first quarter ending March 31, 2025, reporting a profit of $33.3 million, which translates to $0.15 per share. The adjusted profit stood at $40.4 million, or $0.18 per share. In addition, the company declared a cash dividend of $0.18 per share.
Frontline generated revenues of $427.9 million during this quarter. The average daily spot time charter equivalent earnings for various tankers were also highlighted. The earnings averaged $37,200 for VLCCs, $31,200 for Suezmax tankers, and $22,300 for LR2/Aframax tankers.
To strengthen its financial standing, Frontline entered three senior secured credit facilities in February, totaling up to $239 million to refinance maturing debts on a few tankers. Additionally, in April, the company secured a term loan facility of up to $1.2865 billion aimed at refinancing debt on 24 VLCCs, approximately three and a half years ahead of schedule. Lars H. Barstad, the CEO of Frontline Management AS, commented on the results, indicating that the first quarter was in line with expectations despite a challenging economic backdrop.
He noted that while larger ships’ utilization improved, the tanker industry remained operationally steady, ensuring ongoing oil and product transportation. Barstad emphasized the long-term fundamentals of the tanker market, which favor Frontline’s cost-focused model and modern fleet, particularly as new orders have stagnated. Inger M. Klemp, Chief Financial Officer, highlighted that the company’s refinancing initiatives have bolstered liquidity significantly, eliminating substantial debt maturities until 2030 and lowering borrowing costs.
She stressed the importance of maintaining a competitive cost structure to generate sustainable cash flow and enhance shareholder value.