8.25 +0.41 (5.23%)
Pre-Market: 7:15AM EDT
|Bid||8.28 x 1200|
|Ask||8.34 x 800|
|Day's Range||7.79 - 8.02|
|52 Week Range||4.82 - 9.54|
|Beta (3Y Monthly)||0.53|
|PE Ratio (TTM)||29.70|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||5.10|
(Bloomberg) -- 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...
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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.
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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.
Frontline, is pleased to report that crew members of the Front Altair have now either returned home or have re-embarked the vessel to assist with recovery operations and ship to ship transfer of cargo into another Frontline operated vessel. Frontline wishes to express its gratitude to all parties who ensured the crew`s safety and comfort during this difficult ordeal. The Company is extremely proud of the manner in which our highly-trained crew and vessel master followed protocol and operated according to the highest standards of the Merchant Marines to ensure their safety. Fortunately, Frontline was able to deploy emergency responders in a timely manner, who extinguished fire on the vessel within hours of the incident and ensured no pollution resulted. The Front Altair is in stable condition and anchored off Fujairah in the United Arab Emirates. Following transfer of cargo, damage to the Front Altair will be further inspected and the vessel will ultimately be moved to a shipyard for repair.
Frontline Ltd NYSE:FROView full report here! Summary * ETFs holding this stock have seen outflows over the last one-month * Bearish sentiment is low * Economic output in this company's sector is contracting Bearish sentimentShort interest | PositiveShort interest is low for FRO with fewer than 5% of shares on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | NegativeETF activity is negative. Over the last one-month, outflows of investor capital in ETFs holding FRO totaled $255 million. Additionally, the rate of outflows appears to be accelerating. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managersâ€™ Index (PMI) data, output in the Industrialsis falling. The rate of decline is very significant relative to the trend shown over the past year, and is accelerating. The rate of contraction may ease in the coming months, however. Credit worthinessCredit default swapCDS data is not available for this security.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Crude prices jumped over 3 percent in early trading on June 13 following attacks on two tankers in the Gulf of Oman – coming a month after four tankers were sabotaged in the same region. Fears of a wider conflict between the U.S. and Iran and a potential blockage of the Strait of Hormuz are intensifying. Just as the threat of U.S. tariffs on Chinese containerized imports caused a surge of pre-emptive volumes in the second half of last year, the threat of the Strait of Hormuz being closed could cause crude importers to scramble to lock in cargoes now.