I think this question of the dollar's effect on FRO share price is impossible to gauge. How about a much more relevant question: What kind of tanker rates has FRO realized since mid-November?
FRO's 3q`02 report issued Nov. 15 mentions that "based on the rates achieved so far in the fourth quarter it is anticipated that the Company will generate a net income from ordinary operations in excess of $40 million...Current rates for VLCC's and Suezmaxes are $50,000 and $30,000 per day, respectively, which are rates significantly higher than the average fixed so far in quarter. Therefore, if these rates are maintained, the projected income will be significantly higher."
All right, Board. The quarter is over. Does anyone know how well those rates on Nov. 15 held up? Any guesstimates as to what the average rates realized by FRO for the quarter were?
I too appreciate the information. I bought FRO because of the double hulled fleet. I also bought a hybrid car last year (Honda Civic and I love it). I will do my bit to use less oil now so we have some for future generations. Sustainability and protecting our environment, particularly the marine environment are important aspects of being a good global citizen.
Great reply. Don't forget the windmills and wooden shoes. I find this one of the best message boards on Yahoo. My biggest holding is FRO and the more I learn, the more I find I made a great choice a couple of years ago. I always keep shares, but buy more on dips and sell some when it goes up 30% or more. The dividend was nice and perhaps we will get one in 2003 with the world oil situation being what it is.
those rates held up and then some...from the start of the quarter to the 11/15 announcement: VLCC AG-Japan averaged 72.3WS, SUEZ WAfr-USAC averaged 103WS. From 11/16 to the end of the year: VLCC AG-Japan averaged 113WS, SUEZ WAfr-USAC averaged 127WS.
It does look like tanker rates are up. I read your post and the Gibson sheet: What does "WS" stand for, and what does it mean?
The thing I notice about FRO over the last 3 years is that they use the money they make in the good times pretty wisely: strengthening the balance sheet (reducing the break even rate) and paying dividends. If they start rolling in the stuff again (like back in `00 and `01), an investor can be fairly confident the retained earnings won't all be wasted.