Why Frontline (FRO) Shares Are Falling Today - Frontline (NYSE:FRO)

Frontline Plc FRO reported a first-quarter FY23 operating revenue increase of 128.7% year-over-year to $497.33 million, beating the consensus of $356.5 million.
Reported spot TCEs for VLCCs, Suezmax tankers, and LR2/Aframax tankers in the first quarter of 2023 were $52,500 (-16.9% sequentially), $64,000 (+10.5%) and $56,300 (-4.3%) per day.
Adjusted EPS was $0.87 versus a loss per share of $(0.02) in 1Q22, missing the consensus of $0.96.
Q1's net operating income improved to $240.89 million versus $20.75 million a year ago.
Frontline's operating cash flow was $262.72 million compared to $19.94 million in the same quarter last year.
FRO held cash and cash equivalents of $225.36 million, as of March 31, 2023.
Dividend: The company declared a dividend of $0.70 per share for Q1, payable June 30, 2023. The record date for the dividend will be June 16, 2023.
"The most prominent market development during the quarter was that China abandoned its zero-tolerance policy in respect of Covid-19 and started reopening. Freight demand and rates remained firm throughout the quarter, defying historical seasonal patterns. Our constructive long-term outlook is not affected by short-term volatility, as oil demand is expected to rise significantly in the second half of the year," commented Lars H. Barstad, CEO of Frontline Management AS.
For 2Q23, FRO estimate spot TCE on a load-to-discharge basis of $75,000 contracted for 78% of vessel days for VLCCs, $65,000 contracted for 71% of vessel days for Suezmax tankers, and $65,700 contracted for 63% of vessel days for LR2/Aframax tankers.
Price Action: FRO shares are trading lower by 6.80% at $14.01 premarket on Wednesday.

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Why Frontline Shares Are Falling Today

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