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Digging into Frontline’s 3Q16 Results

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Dec. 5 2016, Updated 5:06 p.m. ET

Frontline’s 3Q16 earnings

Frontline (FRO), a crude oil (DBO) carrier based in Hamilton, Bermuda, released its third quarter earnings on November 29, 2016. It was followed by a conference call.

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Earnings highlights:

  • Frontline’s net income in 3Q16 was $5.5 million, which is $0.03 per share. Its net income adjusted for certain non-cash charges was $16.6 million, or $0.11 per share.
  • The company declared a cash dividend of $0.10 per share for 3Q16.
  • Frontline secured bank financing of $870.0 million to partially finance its newbuilds.
  • Frontline took delivery of four of its newbuilds and terminated the contracts for another four newbuilds.

Stock performance

This year hasn’t been a great year for crude oil tanker investors. All the crude oil tanker stocks have had negative year-to-date returns. Following are the stock returns on November 29, 2016, compared to prices at the start of the year.

  • Frontline (FRO): fell 49.0%
  • Teekay Tankers (TNK): fell 65.0%
  • General Maritime Partners (GNRT): fell 56.0%
  • Tsakos Energy Navigation (TNP): fell 44.0%
  • Nordic American Tankers (NAT): fell 43.0%
  • Navios Maritime Midstream Partners (NAP): fell 9.0%
  • DHT Holdings (DHT): fell 52.0%
  • Euronav (EURN): fell 46.0%

What you’ll find in this series 

In this series, we’ll look at Frontline’s 3Q16 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.

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