How Did Frontline Perform in 1Q16?

Frontline’s revenue and EBITDA rise

On May 31, 2016, Frontline (FRO) announced its 1Q16 revenue and earnings. Frontline, the largest oil tanker shipping company in the world, saw its revenue rise by 47% to $227 million from $154 million in 4Q15. The company’s 1Q16 revenue was considerably higher than its 1Q15 revenue of $93.5 million.

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Frontline’s 1Q16 EBITDA[1. Earnings before interest, tax, depreciation, and amortization] was $140 million, which is 41% higher than the previous quarter’s EBITDA of $99 million. In 1Q15, the company had recorded an EBITDA of $68 million.

Actual versus estimates

Frontline’s 1Q16 revenue was 28% higher than the Wall Street analysts’ estimate of $177 million. It also beat the analysts’ EBITDA estimates. The actual EBITDA of $140 million was 32% higher than the estimated $106 million.

Year-to-date stock performance

Almost all of the crude tanker companies posted negative year-to-date returns. Frontline’s (FRO) stock price was down by 42% on June 1, 2016, as compared to its price at the start of the year. For the same period, the stock returns of other crude (DBO) tanker companies follow:

  • Teekay Tankers (TNK): down by 49%
  • Tsakos Energy Navigation (TNP): down by 21%
  • Nordic American Tankers (NAT): down by 2%
  • DHT Holdings (DHT): down by 33%
  • Euronav (EURN): down by 25%
  • Navios Maritime Partners (NAP) rose by 6%

What you’ll find in this series 

In this series, we’ll look at Frontline’s (FRO) 1Q16 results and conference call highlights. We’ll analyze the company’s current position, management’s future plans, and discussions between management and analysts to gauge the company’s future. We’ll also take a detailed look at management’s view of the crude oil tanker industry.