Frontline (FRO) Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Mon, May 25, 2026 astatine 10:56 AM CDT 28 min read

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DATE

Friday, May 22, 2026 astatine 9:00 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Lars Barstad

• Chief Financial Officer — Inger Klemp

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Full Conference Call Transcript

Lars Barstad: Thank you. Dear all, and convey you for dialing into Frontline's quarterly net call. Unprecedented times springs to caput arsenic we study successful Q1 '26, good into the archetypal fractional of the year. I've been successful this manufacture for much than 20 years, and I did not ideate america successful a concern for this duration wherever the Strait of Hormuz has been efficaciously closed. With the opaque and volatile governmental communicative these days, the Frontline squad focused connected the existent cash-generating concern to beryllium done, not speculating excessively acold into the future. We person enactment the astir profitable 4th since 2004 down america and are good into a perchance adjacent much rewarding one.

I'll get backmost to however we analyse the concern aboriginal successful the call. And earlier I springiness the connection to Inger, I'll tally done our TCE numbers connected Slide 3 successful the deck. In the archetypal 4th of 2026, Frontline achieved $103,500 per time connected our VLCC fleet, $72,400 per time connected our Suezmax fleet and $50,700 per time connected our LR2/Aframax fleet. So acold successful the 2nd 4th of 2026, 82% of our VLCC days are booked astatine $181,700. 79% of our Suezmax days are booked astatine $131,300 per time and 68% of our LR2/Aframax days are booked astatine $125,000 per day, 6 digits crossed the board.

All numbers successful this array are connected a load to discharge ground with implications of ballast days astatine the extremity of the quarter. I'll present fto you, Inger, instrumentality you done the fiscal highlights.

Inger Klemp: Yes. Thanks, Lars, and bully greeting and bully afternoon, ladies and gentlemen. We tin past crook to Slide 4 and look astatine the nett connection highlights. We study nett of $559 cardinal oregon $2.51 per stock and adjusted nett of $344.9 cardinal oregon $1.55 per stock successful the archetypal 4th of 2026. The adjusted nett successful the archetypal 4th accrued by $114.5 cardinal compared with the erstwhile quarter, and that was chiefly owed to an summation successful our clip charter net of $112 cardinal from $424.5 cardinal successful the erstwhile 4th to $536.5 cardinal successful this quarter.

Ship operating expenses accrued by $5.9 cardinal from erstwhile quarter, and that was chiefly owed to a alteration successful supplier rebates of $5.4 cardinal successful the quarter. Administrative expenses, excluding the synthetic enactment revaluation nonaccomplishment of $5.8 cardinal successful the archetypal 4th and summation of $0.5 cardinal successful the 4th fourth of '25 accrued by $8.5 cardinal from the erstwhile quarter, and that was chiefly owed to synthetic enactment exercises successful the archetypal 4th of 2026. Then the adjusted involvement disbursal decreased by $9.8 cardinal from erstwhile quarter, and that was owed to little indebtedness and alteration successful involvement rates and margins. Also, depreciation decreased by $6.2 cardinal from erstwhile 4th owed to income of VLCCs successful the period.