|Bid||8.79 x 800|
|Ask||8.80 x 800|
|Day's Range||8.62 - 8.90|
|52 Week Range||4.82 - 9.57|
|Beta (3Y Monthly)||0.44|
|PE Ratio (TTM)||21.67|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||5.10|
In July, Frontline (NYSE: FRO) and Golden Ocean (NASDAQ: GOGL) announced plans to create a joint venture with trading house Trafigura through which Trafigura will contribute its global network of marine fuel facilities, ensuring supply to Frontline and Golden Ocean. The JV with Trafigura reduces IMO 2020 risk by effectively bringing fuel supply in-house. Now, tanker major Euronav (NYSE: EURN) is doing the same thing, but in a very different way.
If you're interested in Frontline Ltd. (NYSE:FRO), then you might want to consider its beta (a measure of share price...
Seasonal sluggishness in the shipping market as well as drydockings mar Golar LNG's (GLNG) Q2 results. Simultaneously, the company announces dividend suspension for two quarters.
When John Fredriksen — the world's most famous living shipping magnate — makes a big move, a common response is to ask: What does he know that we don't? Fredriksen just made a big move, actually, two related ones. What they amount to is a very large bet that the IMO 2020 rule, which will cap marine-fuel sulfur content, is going to be highly profitable for the tanker sector.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Commodities trader Trafigura Group Pte Ltd.’s big bet on shipping paid off as it agreed on a tanker sale that will give it much-needed cash and a stake in one of the world’s largest oil-freight firms.Frontline Ltd., the Oslo-based oil tanker company backed by billionaire John Fredriksen, will buy 10 newly built Suezmax tankers from Trafigura. In exchange, the commodity trader will get between $538 million and $547 million in cash as well as 8.48% of Frontline shares worth about $128 million.The agreement announced on Friday validates Trafigura’s 2017 decision to back a $1.55 billion order for 16 Suezmaxes and 19 oil-product tankers fitted with units known as scrubbers, which are needed to comply with new environmental regulations coming in 2020 to reduce sulfur emissions from shipping.In addition to Frontline paying as much as $675 million in cash and shares for 10 of those Suezmaxes, the tanker operator has the option to buy four more of the vessels. The deal is expected to close between November and March.“This marks a continuation of an approach that has long been integral to Trafigura’s strategy, namely investing in infrastructure assets in support of commodity flows and then collaborating with a market leader like Frontline to maintain sufficient access to those assets for our trading business,” Rasmus Bach Nielsen, Trafigura’s global head of wet freight and a driving force behind its recent moves in shipping, said in a statement.Nielsen sees significant upside potential for the stake in Frontline due to rising U.S. oil exports, an aging global shipping fleet and low vessel orders.New RulesIn the past, Trafigura has used its commodity-sector knowledge and access to relatively cheap capital to invest in the construction of pipelines and ports, eventually selling stakes in those assets while maintaining access for its commodity flows. Handling about 5.5 million barrels of crude and products per day, Trafigura is the second-biggest independent oil and metals trader.Freight rates have been rising ahead of implementation of the International Maritime Organization’s 2020 sulfur regulations. The cost of hiring a Suezmax tanker is currently close to $13,000 per day, according to data from the Baltic Exchange. Rates have increased since the start of the month and are at their highest on a seasonal basis since 2015.As part of the deal with Trafigura, Frontline agreed on long-term charters for all 10 vessels until the deal closes at a price of about $23,000 a day. That is “loss making on current spot rates” but “fair given the outlook for the balance of the year,” analysts at Fearnley Securities AS said in a note to clients.Cash BoostOver the course of this year, about 2,200 ships globally will install so-called scrubbers, allowing them to keep burning high-sulfur fuel oil once IMO 2020 comes into force. Much of the work is being crammed into the fourth quarter, threatening to drain capacity from the global fleet.Fearnley says the deal will make Frontline the largest Suezmax operator in what it rated “a very positive transaction” for the shipping firm.The deal will provide Trafigura with a cash boost amid pressures about its debt levels and criticism from short-seller Iceberg Research about how it values some assets.Trafigura is highly leveraged, with adjusted net debt standing at nearly $7.6 billion at the end of March, equal to nearly 4.5 times its annual earnings before interest, tax, depreciation and amortization in its fiscal 2018 year.Separately, Trafigura this month struck an agreement with Frontline and Golden Ocean Group Ltd., a dry bulk shipping firm also backed by Fredriksen, to form a marine-fuel joint venture.\--With assistance from Jack Wittels and Bill Lehane.To contact the reporter on this story: Andy Hoffman in Geneva at email@example.comTo contact the editors responsible for this story: James Herron at firstname.lastname@example.org, Rakteem KatakeyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Oslo Norway, Q8, based Investment company Folketrygdfondet (Current Portfolio) buys Frontline during the 3-months ended 2019Q2, according to the most recent filings of the investment company, Folketrygdfondet. Continue reading...
One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will...
Textainer's (TGH) second-quarter 2019 results are likely to benefit from high utilization, a stable container resale environment and favorable new container prices.
Hertz's (HTZ) Q2 results should benefit from higher revenues at the U.S. Rental Car segment. The company's turnaround plan is anticipated to further aid its performance.
Frontline Ltd. (the "Company") advises that the 2019 Annual General Meeting of the Company will be held on September 13, 2019. The record date for voting at the Annual General Meeting is set to July 25, 2019. This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Today we've highlighted five stocks that are currently trading for under $10 per share. All of these stocks also sport a Zacks Rank 2 (Buy) or better, and are showing signs of outpacing the market.
Hedge funds and other investment firms that we track manage billions of dollars of their wealthy clients' money, and needless to say, they are painstakingly thorough when analyzing where to invest this money, as their own wealth also depends on it. Regardless of the various methods used by elite investors like David Tepper and David […]
Frontline Ltd. (the "Company" or "Frontline") (FRO) is pleased to announce that it has acquired a scrubber-equipped VLCC resale under construction at Hyundai Samho Heavy Industries ("HSHI") expected to be delivered in May 2020 and has ordered two LR2 newbuildings from SWS, China, expected to be delivered in January 2021 and March 2021. This is in addition to the Company`s recent acquisition of a scrubber-equipped Suezmax resale under construction at HHI due for delivery in May 2020. "These transactions reflect Frontline`s focus on increasing our exposure to the tanker market and are also part of a continuous effort to renew and modernize the Company`s fleet.
The United States Navy on Wednesday displayed limpet mine fragments and a magnet it said it had removed from one of two oil tankers attacked in the Gulf of Oman last week, saying the mines bore a striking resemblance to Iranian ones. The United States, waging a "maximum pressure" sanctions campaign against Iran to curb its nuclear and regional activities, has been trying to build an international consensus that Iran was behind last week's blasts, as well as a May 12 strike on four oil tankers off the United Arab Emirates.