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NEW YORK - Frontline plc (NYSE:FRO) reported fourth quarter 2024 results that beat revenue expectations but missed on earnings, sending shares up 5% in early trading.
The tanker company posted adjusted earnings per share of $0.20, falling short of the $0.35 analyst consensus. However, revenue of $425.6 million crushed estimates of $287.25 million.
Frontline’s revenue jumped 44% YoY from $295.3 million in Q4 2023, driven by strong tanker rates. The company reported total operating revenues net of voyage expenses of $252.2 million for the quarter.
"We delivered solid results in a quarter that saw continued strength in the tanker market," said CEO Lars H. Barstad. "Our modern, efficient fleet is well-positioned to capitalize on favorable industry fundamentals."
The company declared a cash dividend of $0.20 per share for Q4 2024.
Frontline reported strong liquidity of $693 million as of December 31, 2024, including cash, undrawn credit facilities, and marketable securities. The company fully drew down a $512.1 million sale-and-leaseback agreement to refinance 10 Suezmax tankers in Q4, generating $101 million in net cash proceeds.
Looking ahead, Frontline expects global oil demand to reach 104.5 million barrels per day by the end of 2025. The company noted its fleet of 81 vessels has an average age of 6.6 years, with 99% being eco-friendly and 56% fitted with scrubbers.
Frontline shares were up 5% following the earnings release, as investors focused on the revenue beat despite the earnings miss.
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