Frontline drops after Israel-Hezbollah ceasefire, 'disappointing' Q3 print

Frontline

27/11/2024 11:51

** Shares in the Norwegian oil tanker group Frontline
 FRO.OL  drop 11%, with an analyst pointing to Israel-Hezbollah
ceasefire deal and a "disappointing" Q3 report
    ** Its New York listed shares  HF6.F  fell around 5%
following the news of the ceasefire, as investors believe it
could be the first step of further de-escalation in the Middle
East, says Carnegie analyst Kyrre Flesjå 
    ** "The Q3 report was clearly disappointing, coming in below
expectations across metrics, driven by lower achieved rates,"
the analyst adds
    ** Frontline's Q3 adjusted EBITDA of $229 million came in
nearly 7% below the LSEG consensus
    ** Moreover, the Q4 bookings guidance and current spot rates
implies "heavy" negative estimate revisions, but this should be
expected by the market, Flesjå adds
    ** The stock is amongst the biggest fallers on the
pan-European Stoxx 600  .STOXX  index; if losses hold it will
see its worst day in 4-1/2 years

 (Reporting by Agata Rybska)
 ((gdansk.newsroom@thomsonreuters.com;))