Frontline Ltd.

  • TickerFRO
  • ISINBMG3682E1921
  • ExchangeOslo Bors
  • SectorIndustrial Transportation
  • CountryBermuda
Jørgen Lian

Frontline (Hold, TP: NOK76.00) - Flexing its muscles

Frontline’s Q1 results proved its strong cost discipline with a sizeable earnings beat, which has led us to lift estimates. We have also included the newly acquired VLCCs. We still see persistent headwinds despite reports indicating rising export volumes in the coming weeks, as demand is likely to be tested and vessel oversupply must be worked through. Still, we estimate that Frontline’s available liquidity is sufficient for beefing up its VLCC fleet. We reiterate our HOLD but have raised our target price to NOK76 (68).

Jørgen Lian

Financing 2°C Shipping - Financial risk of future regulations

We have worked with KLP and other partners in the Green Shipping Programme to assess the risk for financial stakeholders in various shipping technologies within the VLCC, Capesize and 10k TEU container segments. We find: 1) relative attractiveness of short-dated assets with scrubbers; 2) high uncertainty among newbuild alternatives in an uncertain regulatory environment; 3) that current IMO targets seem within reach in our base case; and 4) that further tightening of regulations is needed to align shipping with the Paris Agreement. We find the current outlook favours LNG-fuelled vessels for ne...

Dennis Anghelopoulos ...
  • Lukas Daul

Frontline - Q1’21 First Take

EBITDA of USD 60m - above expectations Large q-o-q decline in opex Q2’21 bookings below CBE

Dennis Anghelopoulos ...
  • Lukas Daul

Frontline - Adding six VLCC resales

We expect Q1’21 EBITDA of USD 40m Q2’21 bookings likely below Q1’21 Acquiring six VLCCs under construction

Dave Nicoski ...
  • Ross LaDuke

Vermilion Booster Shots: Attractive bottom-fishing stocks

For investors looking for bottom-fishing candidates; stocks that are breaking downtrends, exhibiting ascending reaction lows, and showing stabilizing relative strength.

Dave Nicoski ...
  • Ross LaDuke

Vermilion Compass: Weekly Equity Strategy

Bullish Outlook Intact Amid rising Middle East tensions, investors have moved to safe-havens including Treasuries and gold, all while having a muted effect on the US equity market. At this point in time, the rising tensions have done virtually no damage to the bullish trends and indicators that continue to dominate the market. We remain bullish. • 10-Year Treasury. The 10-year yield has fallen to logical support at the uptrend or 1.75%, a level we expect to hold. A breakdown would raise concerns of a deeper pullback for US equities... see chart below. • Gold Testing Key Resistance. Gold...

Dave Nicoski ...
  • Ross LaDuke

Vermilion Compass: Weekly Equity Strategy

Market remains in purgatory Purgatory is a reference we have used to describe the state of the market numerous times throughout 2019, and we believe this remains the case. Technical signals continue to suggest that while there are little-to-no signs for us to expect impending doom (economic data notwithstanding), there is also little to suggest an imminent broad market rally. Until these signals begin leading us one way or the other, our neutral outlook remains appropriate. • Small-caps, Transports, Banks. Small-caps underperforming large-caps remains on our list of concerns as it has for ...

Jørgen Lian

Frontline (Hold, TP: NOK76.00) - Flexing its muscles

Frontline’s Q1 results proved its strong cost discipline with a sizeable earnings beat, which has led us to lift estimates. We have also included the newly acquired VLCCs. We still see persistent headwinds despite reports indicating rising export volumes in the coming weeks, as demand is likely to be tested and vessel oversupply must be worked through. Still, we estimate that Frontline’s available liquidity is sufficient for beefing up its VLCC fleet. We reiterate our HOLD but have raised our target price to NOK76 (68).

Jørgen Lian

Financing 2°C Shipping - Financial risk of future regulations

We have worked with KLP and other partners in the Green Shipping Programme to assess the risk for financial stakeholders in various shipping technologies within the VLCC, Capesize and 10k TEU container segments. We find: 1) relative attractiveness of short-dated assets with scrubbers; 2) high uncertainty among newbuild alternatives in an uncertain regulatory environment; 3) that current IMO targets seem within reach in our base case; and 4) that further tightening of regulations is needed to align shipping with the Paris Agreement. We find the current outlook favours LNG-fuelled vessels for ne...

Dennis Anghelopoulos ...
  • Lukas Daul

Frontline - Q1’21 First Take

EBITDA of USD 60m - above expectations Large q-o-q decline in opex Q2’21 bookings below CBE

Dennis Anghelopoulos ...
  • Lukas Daul

Frontline - Adding six VLCC resales

We expect Q1’21 EBITDA of USD 40m Q2’21 bookings likely below Q1’21 Acquiring six VLCCs under construction

Dennis Anghelopoulos ...
  • Lukas Daul

Sector Fast Comment - Euronav – Q1’21 results

VLCC spot – USD 14kpd in Q1’21, USD 10kpd in Q2’21e DPS of USD 0.03 maintained Expands fleets with resales and newbuilds

Jon Masdal ...
  • Jørgen Lian
  • Martin Hoang Nguyen
  • Ole-Andreas Krohn
  • Viktor Trollsten

Northern Lights

Alexander Aukner ...
  • Christoffer Wang Bjørnsen
  • Frank Maaø
  • Håkon Astrup
  • Helene Kvilhaug Brøndbo
  • Jesper Ingildsen
  • Jon Masdal
  • Jørgen Lian
  • Karl-Johan Bonnevier
  • Martin Hoang Nguyen
  • Martin Huseby Karlsen
  • Mattias Holmberg
  • Niclas Gehin
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Patrik Ling
  • Rune Majlund Dahl
  • Simen Mortensen

Northern Lights

Alexander Aukner ...
  • Christoffer Wang Bjørnsen
  • Håkon Astrup
  • Jimi Lehtonen
  • Jon Masdal
  • Jørgen Lian
  • Martin Hoang Nguyen
  • Mats Bye
  • Niklas Wetterling
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Tomi Railo
  • Viktor Trollsten

Northern Lights

Jørgen Lian ...
  • Karl-Johan Bonnevier
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Patrik Ling

Northern Lights

Karl-Johan Bonnevier ...
  • Nicolay Dyvik
  • Ole-Andreas Krohn
  • Rune Majlund Dahl
  • Simen Mortensen
  • Tomi Railo

Northern Lights

With a more favourable environment, FRONTLINE improves to Slightly Positive

FRONTLINE (NO), a company active in the Oil Equipment & Services industry, is favoured by a more supportive environment. The independent financial analyst theScreener has confirmed the fundamental rating of the title, which shows 4 out of 4 stars, as well as its unchanged, moderately risky market behaviour. The title leverages a more favourable environment and raises its general evaluation to Slightly Positive. As of the analysis date March 5, 2021, the closing price was NOK 58.50 and its potential was estimated at NOK 76.89.

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