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Highlights

  • Frontline reported total revenue of USD 2,050.4 million in FY24, a 13.8% increase from USD 1,802.2 million in FY23
  • Net income for FY24 decreased by 24.5% YoY to USD 495.6 million from USD 656.4 million in FY23
  • FRO's revenue exhibited a 5-year CAGR of 16.45% and gross profit increased at a higher 5-year CAGR of 20.98%

Frontline Plc (NYSE:FRO), based in Cyprus, specializes in the seaborne transportation of crude oil and refined products globally.

In the financial year 2024 (FY24), Frontline reported total revenue of USD 2,050.4 million, a 13.8% increase from USD 1,802.2 million in FY23, driven by higher average daily TCEs across all carriers.

However, net income decreased by 24.5% YoY to USD 495.6 million from USD 656.4 million in FY23, primarily due to higher operating expenses and increased finance costs.

Cash from operating activities declined by 14.0% YoY in FY24, totalling USD 736.4 million compared to USD 856.2 million the previous year, reflecting the decrease in net income.

Despite this, the company’s cash and cash equivalents grew by 34.1% YoY, reaching USD 413.5 million, up from USD 308.3 million in FY23, due to higher cash inflows from operating activities, although partially offset by outflows from investing and financing activities.

FRO’s Financial Trend

FRO's revenue exhibited a 5-year compound annual growth rate (CAGR) of 16.45%, rising from USD 1,221.2 million in 2020 to USD 2,050.38 million in 2024. The gross profit increased at a higher 5-year CAGR of 20.98%, reaching USD 1,044.71 million in 2024. The gross margin displayed a fluctuating trend, declining to 25.67% in 2021 before rebounding to 50.95% in 2024.

Company Outlook

Frontline expects its average daily spot Time Charter Equivalent (TCE) earnings for Q1 2025 to be lower than the current contracted rates of USD 43,700 for VLCCs (80% covered), USD 35,400 for Suezmax tankers (77% covered), and USD 29,700 for LR2/Aframax tankers (64% covered), mainly due to ballast days during the period.

The company forecasts its estimated average daily cash breakeven rates for 2025 to be USD 29,200 for VLCCs, USD 24,000 for Suezmax tankers, and USD 22,200 for LR2/Aframax tankers, reflecting anticipated operational costs and market conditions.

Stock Information

The stock price of FRO has declined by around 4.15% and ~27.82% in the past month and past six months, respectively. The stock’s 52-week low and high spans from USD 13.17 to USD 29.39. As of 04 March 2025, the stock’s closing price is USD 16.60.

 Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is March 04, 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.