Frontline Ltd - Strong performance since 2008
Frontline (FRO) recently announced its 4Q20 and full-year 2020 results. The company recorded its best full-year results since 2008 despite an unusually weak last quarter of the year. The firmness of 4Q19 in the tanker market continued at the beginning of 2020, and the sudden demand destruction of crude oil due to the outbreak of COVID-19 presented an unprecedented opportunity for tanker shippingcompanies. The surge in demand for vessels for floating storage led to a rally in vessel earnings in April and TCE earnings of crude carriers remained elevated in 1H20. Its VLCCs and Suezmax vessels realised spot TCE of USD 54,500pd and USD 35,600pd during the year compared to USD 35,900pd and USD 25,800pd in 2019 respectively, while TCE revenue expanded 55% to USD 868.1mn from USD
561.8mn a year ago. EBITDA jumped 86.4% YoY to USD 646.6mn from USD 357.4mn a year ago on account of a surge in TCE revenue and stable operating expenses. FRO’s net income increased by nearly threefold from USD 140mn in 2019 to USD 412.9mn in 2020 – the highest since 2008. The company reported an EPS of USD 2.09 in 2020 compared to USD 0.78 in 2019. It transferred the benefits of
robust profits of 1H20 in form of a cash dividend of USD 1.20 per share, which translates into a dividend yield of 9.3%.
Drewry, since 1970, has been providing research and advisory services on the global Maritime and Shipping industries and has established itself as a firm with long history of credibility and expertise on various aspects of the maritime industry. Leveraging this in-depth market knowledge and understanding, we have extended our offering to deliver a unique, independent investment research service on globally listed companies operating in the maritime industry. Under the brand Drewry Maritime Equity Research and in accordance with the FCA, DMER led by Rahul Kapoor and his team, offers fundamental analysis on listed companies. DMER analysts have access to one of the most up-to-date, comprehensive and reliable sources of market insight and research data available today. By combining these market-leading resources with seasoned sector expertise and commercial awareness, we are able to offer a highly differentiated and comprehensive investment research service to prospective investors in listed maritime companies. We look at globally listed companies within the following sectors: Port Operators, Container Shipping, Container Manufacturing & Leasing, LNG Shipping, Dry Bulk Shipping and Tanker Shipping. Combine in-depth sector expertise with financial analysis focusing on over 50 stocks globally.
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