Cyprus's Frontline posts record Q2 profit on strong tanker rates, vessel sales

Frontline

28/08/2026 06:39

Overview
Cyprus tanker operator reported record Q2 profit and revenue for 2026
Adjusted EPS for Q2 reached an all-time high
Company entered agreements to sell two VLCCs, planning special dividend after completion

Outlook
Frontline expects Q3 2026 spot TCEs to be lower than currently contracted rates
Company says replenishing oil inventories should create material tailwinds for tankers
Frontline continues to focus on securing revenue visibility at historically high levels

Result Drivers
HIGH TANKER RATES - Co achieved historically high spot time charter equivalent earnings for VLCCs, Suezmax, and LR2/Aframax tankers
VESSEL SALES - Gain on sale of two Suezmax tankers contributed to quarterly profit
LOWER FINANCING COSTS - Reduced weighted average interest rate margin by 52 bps through refinancing and margin reductions

Company press release: ID:nGNX81zD8L

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
$943.30 mln
 
Q2 Adjusted EPS
 
$2.61
 
Q2 Dividend
 
$2.61
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the oil & gas transportation services peer group is "buy."
Wall Street's median 12-month price target for Frontline PLC is NOK390.00, about 4.6% below its August 27 closing price of NOK408.80
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago

Reuters Recommended Reads
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Aug 27 - Greece's C3is Q2 revenue more than doubles on higher charter rates

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)