Frontline Registers Over 148% Operating Revenue Growth In Q4 Backed By Recovery In Chinese Demand

Frontline Plc FRO reported a fourth-quarter operating revenue increase of 148.3% year-over-year to $530.1 million, beating the consensus of $365 million.
Reported spot TCEs for VLCCs, Suezmax tankers, and LR2 tankers in Q4 were $63,200, $57,900, and $58,800 per day, respectively.
Adjusted EPS of $0.97 missed the consensus of $1.06.
Frontline generated $219.8 million in operating cash flow and held $490.8 million in cash and equivalents.
Dividend: The company declared a dividend of $0.30 per share for Q3 and a cash dividend of $0.77 per share for Q4.
Lars H. Barstad, CEO of Frontline Management AS, commented: "With Chinese demand returning in earnest, the VLCC market also kicked into action during the fourth quarter, and Frontline reaped the full benefits of its lean and efficient operations with all asset classes generating solid shareholder returns."
Inger M. Klemp, CFO of Frontline Management AS, added: "We expect to refinance a term loan facility with total balloon payment of $80.1 million due in August 2023 prior to maturity, leaving the company with no material maturities until 2024. Our strong cash flow in the second half of 2022 enables us to return $238.2 million to our shareholders in cash dividends."
Q1 Outlook: Frontline estimates Q1 spot TCEs to be lower than the TCEs currently contracted due to the impact of ballast days in Q4. The number of ballast days in Q4 was 322 for VLCCs, 428 for Suezmax tankers, and 174 for LR2/Aframax tankers.
Price Action: FRO shares closed higher by 2.83% at $18.55 on Monday.

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