Frontline plc, one of the world's largest crude oil tanker operators with a fleet spanning VLCCs, Suezmax tankers and LR2/Aframax vessels, reported unaudited results on Friday for the six months ended June 30, 2026, posting the strongest quarterly performance in its history for the second quarter of 2026.

The company reported its best-ever quarterly profit of $659.2 million, or $2.96 per share, and its best-ever adjusted profit of $580.2 million, or $2.61 per share, for the second quarter. Revenues for the quarter came to $943.3 million, and Frontline declared a cash dividend of $2.61 per share for the period, in line with its policy of distributing the bulk of net income to shareholders through variable quarterly dividends.

Average daily spot time charter equivalent earnings ("TCEs") for the second quarter reached $152,700 per day for VLCCs, $111,500 per day for Suezmax tankers, and $92,400 per day for LR2/Aframax tankers — rates well above the levels typically needed to cover operating costs, underscoring the strength of the quarter.

Frontline also lowered its financing costs through a combination of margin reductions on existing facilities and the full refinancing of selected facilities, cutting the company's weighted average interest rate margin by approximately 52 basis points (bps), from 178 bps at the end of the first quarter of 2026 to 126 bps upon completion of the process in the third quarter of 2026.

On the fleet side, Frontline entered into agreements in July 2026 to sell two VLCCs built in 2017 for a total sales price of $270.0 million. Subject to completion of the sales, the total cash proceeds of approximately $179.0 million will be returned to shareholders through a special one-time dividend of $0.80 per share. In addition, the company delivered its two oldest Suezmax tankers, built in 2014 and 2015, during the second quarter of 2026, booking a gain on sale of $54.7 million. The disposals and newbuilding deliveries continue the company's fleet renewal strategy of recycling older tonnage while adding modern, more efficient vessels.

Frontline entered into two one-year time charter-out agreements for two VLCC newbuildings delivered on June 22, 2026 and July 3, 2026, at a rate of $120,000 per day per vessel. It also entered into time charter-out agreements for two VLCCs, both built in 2016, for periods of two and three years at average rates of $90,000 and $75,000 per day respectively, commencing in August 2026. The multi-year fixtures lock in revenue visibility while retaining exposure to the spot market through the rest of the fleet.

Lars H. Barstad, Chief Executive Officer of Frontline Management AS, commented: "The second quarter of 2026 continued to be volatile. The entire energy complex is being challenged, creating inefficiencies that support tanker utilization. While the fundamental story of oil demand versus vessel supply has temporarily taken a back seat, Frontline remains focused on capturing near-term value for our shareholders.

"Currently, it is difficult to see the ultimate endgame of the ongoing conflict in the Middle East, but our conviction regarding its longer-term effects remains firm. Energy supply security will increasingly dominate strategic decisions, altering trade lanes. At the same time, the need to replenish oil inventories should create material tailwinds for tankers.

"Frontline continues to capitalize on these markets into the third quarter, with an increased focus on securing revenue visibility at historically high levels."

Inger M. Klemp, Chief Financial Officer of Frontline Management AS, added: "In the second and third quarters of 2026, we reduced our financing costs through a combination of margin reductions on existing facilities for their remaining tenors and full refinancing of selected facilities, reducing the Company's weighted average interest rate margin by approximately 52 bps from 178 bps at the end of the first quarter of 2026 to 126 bps upon completion of the process in the third quarter of 2026.

"We believe that the refinancing of, and amendments to, our existing debt facilities have been achieved on highly attractive terms, further strengthening our liquidity position while reducing our borrowing costs and cash breakeven rates. We continue to focus on maintaining our competitive cost structure, breakeven levels and solid balance sheet to ensure that we are well positioned to generate significant cash flow and create value for our shareholders."

Frontline stated that it expects spot TCEs for the full third quarter of 2026 to be lower than the spot TCEs currently contracted, due to the impact of ballast days during the quarter. See Appendix 1 of the company's 2nd quarter 2026 results for further details.

Source: Frontline Plc