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Frontline’s Stock Has Fallen 10.5% in November

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Stock performance

Frontline (FRO) stock closed at $5.4 on November 27. The stock is trading 30% lower than its 52-week high and 12% higher than its 52-week low. Since the beginning of November, Frontline’s stock price has fallen 10.5%.

Peers

The following are the month-to-date stock returns of other crude tanker companies as of November 27, 2017.

  • Nordic American Tankers (NAT) fell 5.6%.
  • Teekay Tankers (TNK) rose 14.8%.
  • Euronav (EURN) rose 5.4%.
  • DHT Holdings (DHT) fell 1.5%.
  • Navios Maritime Midstream Partners (NAP) fell 6.9%.
  • Gener8 Maritime Partners (GNRT) rose 2.6%.

Shipping companies account for 19.7% of the Guggenheim Shipping ETF (SEA). SEA has fallen 3.4% month-to-date. If you’re interested in broad exposure to the industrials sector, you can consider the SPDR Dow Jones Industrial Average ETF (DIA).

3Q17 Frontline’s Highlights

  • Frontline reported a net loss of $24.1 million or $0.14 per share in 3Q17 primarily due to weak average time charter equivalent earnings.
  • Frontline’s revenues fell to $140.4 million in 3Q17 from $150.1 million in 2Q17.
  • Frontline recorded an adjusted EBITDA of $31 million—down from $37 million in the previous quarter.
  • Frontline terminated the long-term charter for the Suezmax tanker Front Ardenne in 3Q17. The tanker was built in 1997.
  • The company took delivery of five newbuild vessels—two VLCCs, one Suezmax, and two LR2/Aframax tankers in 3Q17.

Series overview

In this series, we’ll look at Frontline’s 3Q17 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.

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