Frontline plc (NYSE:FRO) reported strong first-quarter 2026 results on Friday.

The tanker operator posted first-quarter profit of $559.1 million, or $2.51 per share, while adjusted profit reached $344.9 million, or $1.55 per share.

Adjusted EPS topped analyst estimates of $1.45, while revenue climbed to $714.2 million, beating analyst estimates of $570.8 million.

Strong Tanker Rates

The company declared a quarterly cash dividend of $1.55 per share. Higher time charter equivalent, or TCE, earnings drove results, with TCE revenue rising to $536.5 million from $424.5 million in the prior quarter.

Average daily spot TCE earnings were $103,500 for VLCCs, $72,400 for Suezmax tankers, and $50,700 for LR2/Aframax tankers, up sharply from a year earlier.

Frontline said second-quarter contracted rates remained elevated at $181,700 per day for VLCCs, $131,300 for Suezmax tankers, and $125,000 for LR2/Aframax tankers, though full-quarter rates are expected to moderate because of ballast days.

Fleet Renewal

Results included a $210.9 million gain from the sale of eight older ECO VLCCs, generating net cash proceeds of $477.2 million after debt repayment.

Frontline also agreed to sell two older Suezmax tankers for $140 million, with expected net cash proceeds of about $106 million and an anticipated second-quarter gain of about $55 million.

As of March 31, Frontline owned 72 vessels with an aggregate capacity of about 15.2 million deadweight tons.

The company is acquiring nine scrubber-fitted ECO VLCC newbuildings for $1.224 billion, with deliveries continuing through the first quarter of 2027. Upon completion, the fleet is expected to expand to 79 vessels.

The company also secured financing commitments and refinancing facilities totaling more than $970 million tied to fleet expansion and existing debt.

Executive Commentary

CEO Lars H. Barstad said tanker markets remained highly volatile during the first quarter as disruptions tied to the Strait of Hormuz reshaped global oil trading patterns.

He said longer trade routes, rising ton-mile demand and broader market inefficiencies helped keep vessel utilization and Frontline’s earnings strong despite Middle East uncertainty.

“Increased ton-miles, longer trade lanes, and broader inefficiencies supported vessel utilization and kept Frontline’s earnings strong throughout the quarter.”

Barstad added that the company locked in part of its near-term revenue during the elevated-rate environment and expressed growing confidence in the longer-term tanker outlook, citing stronger global focus on energy security and more diversified Asian oil sourcing.

FRO Price Action: Frontline shares were down 3.47% at $37.10 at the time of publication on Friday, according to Benzinga Pro data.

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