The earnings call reflects a mixed sentiment with a strong cash position and modern fleet as positives, but is counterbalanced by decreased profits and challenging market conditions. The potential for future cash generation is noted, yet current market dynamics are less favorable.

Company Guidance

During the Q3 2024 earnings call, Frontline plc provided detailed guidance on several key metrics. The company achieved time charter equivalent (TCE) rates of $39,600 per day for both their VLCC and Suezmax fleets, and $36,000 per day for their LR2/Aframax fleet. For the third quarter so far, they have booked 77% of their VLCC days at $44,300 per day, 70% of Suezmax days at $39,600 per day, and 60% of LR2/Aframax days at $34,600 per day. Frontline reported a profit of $60.5 million or $0.27 per share, with an adjusted profit of $75.4 million or $0.34 per share. Their balance sheet remains solid with $567 million in liquidity, and the company has no significant debt maturities until 2027. The fleet, consisting of 41 VLCCs, 22 Suezmax tankers, and 18 LR2 tankers, has an average age of 6 years. The estimated average cash breakeven rates for the next 12 months stand at $29,600 per day for VLCCs, $23,400 per day for Suezmax tankers, and $22,000 per day for LR2 tankers, with a fleet average of $26,300 per day, including upcoming dry dockings. Despite a challenging spot market, Frontline is expected to generate a cash flow of $304 million or $1.36 per share, with potential for significant upside if the market improves by 30%.

Strong Cash Position

Frontline has a strong liquidity position with $567 million in cash and cash equivalents, indicating a solid balance sheet with no major debt maturities until 2027.

Modern Fleet Composition

Frontline's fleet has an average age of 6 years, with 99% being eco-vessels and 56% fitted with scrubbers, which positions them well for operational efficiency and environmental regulations.

Potential for Increased Cash Generation

The current fleet and market conditions could generate $304 million or $1.36 per share, with a 30% increase in spot market rates potentially doubling cash generation.

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Frontline (DE:HF6) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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DE:HF6 Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 22, 2018	2018 (Q2)	- / -0.13	-0.03	-325.81% (-0.10)	―	―
Nov 16, 2018	2018 (Q3)	- / <0.01	-0.136	107.14% (+0.15)	―	―
Feb 28, 2019	2018 (Q4)	- / 0.15	0.029	400.00% (+0.12)	―	―
May 16, 2019	2019 (Q1)	- / 0.26	-0.078	437.50% (+0.34)	―	―
Aug 27, 2019	2019 (Q2)	- / <0.01	-0.128	107.58% (+0.14)	―	―
Nov 27, 2019	2019 (Q3)	- / -0.06	0.01	-700.00% (-0.07)	―	―
Feb 27, 2020	2019 (Q4)	- / 0.53	0.146	266.67% (+0.39)	―	―
May 20, 2020	2020 (Q1)	- / 0.82	0.262	211.11% (+0.55)	―	―
Aug 27, 2020	2020 (Q2)	- / 0.98	0.01	10000.00% (+0.97)	―	―
Nov 25, 2020	2020 (Q3)	- / 0.28	-0.058	583.33% (+0.34)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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DE:HF6 Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 27, 2024	€17.11	€15.78	-7.77%
Aug 30, 2024	€19.63	€20.28	+3.35%
May 30, 2024	€24.19	€23.92	-1.11%
Feb 29, 2024	€18.48	€19.50	+5.54%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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