Frontline (FRO.O) Q2 2026 Earnings Report
SE:FRO.O Q2 2026 EPS Results
- Actual EPS
- NOK 27.26
- Consensus EPS
- NOK 25.23
- Beat/Miss
- Beat by +NOK 2.04
- One Year Ago EPS
- NOK 3.22
SE:FRO.O Q2 2026 Revenue Results
- Actual Revenue
- NOK 8.69B
- Expected Revenue
- NOK 6.99B
- Beat/Miss
- Beat by +NOK 1.70B
- YoY Revenue Growth
- +96.49%
Earnings Announcement Details
- Quarter
- Q2 2026
- Date
- 08/28/2026
- Time
- Before Open
- Conference Call
- Friday, August 28, 2026
Frontline's next earnings date is estimated for November 30, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
The call presented a predominantly positive near-term financial and operational picture: record quarterly earnings, very high TCEs with substantial booking coverage, improved liquidity, lower financing costs, and significant cash generation potential. These positives are tempered by meaningful medium-to-long-term risks — elevated geopolitical insecurity, pronounced market inefficiencies, data blind spots, an elevated orderbook relative to the active fleet and slow scrapping — which introduce uncertainty about sustainability. On balance, the strong earnings, fleet quality, and balance sheet improvements outweigh the risks discussed.
Frontline’s guidance emphasized very strong near‑term cash generation and a solid balance sheet: Q2 TCEs were $153k/day (VLCC), $111k/day (Suezmax) and $92.4k/day (LR2/Aframax), with forward coverage of 86% of VLCC days at $157k/day, 79% of Suezmax days at $117k/day and 70% of LR2 days at $81k/day; reported profit was $659M ($2.96/share) and adjusted profit $580M ($2.61/share), up $235M QoQ. Liquidity is robust (SEK 1.2bn cash and equivalents, $91M undrawn revolver), no meaningful debt maturities until 2030, remaining newbuilding commitments ~$601M with up to $737M newbuilding financing secured, and a ~52 bps reduction in weighted average margin (from 178 to 126 bps: amendments 24 bps, refinancings 21 bps, newbuilding/asset sales 7 bps). Pro‑forma fleet post deliveries/sales: 40 VLCCs, 19 Suezmax, 18 Aframax/LR2 (avg age 6.6 yrs; 100% eco; 69% scrubber‑fitted). Estimated 12‑month cash breakevens: VLCC ~$23.8k/day, Suezmax ~$25.7k/day, LR2 ~$22.2k/day (fleet avg ~$23.9k/day; excl. drydock ~$22.3k/day); Q2 OpEx incl. drydock: VLCC $9.2k/day, Suezmax $9.0k/day, LR2 $13.3k/day (fleet OpEx ex‑drydock $8.7k/day). Based on ~27.8k earning days, cash‑generation potential at current TCE/spot rates is ~$2.3bn (~$10.35/share; ~24% cash‑flow yield), rising to ~$3.1bn ($30.91/share) with a 30% rate upside or falling to ~$1.5bn ($6.88/share) with a 30% downside.
- Record Quarterly ProfitReported profit of $659 million ($2.96 per share) and adjusted profit of $580 million ($2.61 per share) in Q2 2026 — the company's best quarter ever; adjusted profit increased by $235 million versus the prior quarter.
- Very Strong TCE Levels and Booking CoverageQ2 TCEs: VLCC $153,000/day, Suezmax $111,000/day, LR2/Aframax $92,400/day. Booked days so far in Q2 2026: VLCC 86% at $157,000/day, Suezmax 79% at $117,000/day, LR2 70% at $81,000/day.
- Substantial Cash Generation Potential and Shareholder YieldCash generation potential based on current fleet and spot rates is ~$2.3 billion (~$10.35 per share) representing a ~24% cash flow yield; scenario sensitivity: +30% rates → $3.1 billion ($30.91/share); -30% rates → $1.5 billion ($6.88/share).
- Improved Balance Sheet Liquidity and No Near-Term MaturitiesReported strong liquidity including SEK 1.2 billion in cash and equivalents, undrawn revolver capacity (~$91 million) and marketable securities; management stated no meaningful debt maturities until 2030 (no debt maturing until 2028 with material maturities deferred to 2030).
- Reduced Financing CostsWeighted average interest rate margin decreased by ~52 basis points (from 178 bps to 126 bps) versus Q1 2026 — driven by amendments (24 bps), refinancings (21 bps) and newbuilding financing/asset sales (7 bps); adjusted interest expense down ~$4.8 million quarter-on-quarter.
- Fleet Quality and SizePro forma fleet after deliveries/sales: 40 VLCCs, 19 Suezmax, 18 Aframax/LR2; average age 6.6 years; 100% eco vessels with 69% scrubber-fitted — positioning the company in an efficient, modern fleet.
- Lower Operating and Depreciation CostsShip operating expenses decreased by $4.3 million QoQ (driven by vessel sales and supplier rebates); administrative expenses down $2.4 million QoQ (excluding synthetic option revaluation); depreciation decreased by $4.7 million QoQ.
- Operational OpEx and Breakeven LevelsEstimated cash breakeven (12 months forward): VLCC ~$23.8k/day, Suezmax $25.7k/day, LR2 $22.2k/day; fleet average ~$23.9k/day (excluding dry dock ~$22.3k/day). Reported Q2 OpEx/day: VLCC $9.2k, Suezmax $9.0k, LR2 $13.3k; fleet OpEx excluding dry dock ~$8.7k/day.
SE:FRO.O Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Nov 30, 2026 | 2026 (Q3) | 24.47- | 1.66 | ― | ― |
| Aug 28, 2026 | 2026 (Q2) | 25.2327.26 | 3.22 | 745.71% (+24.04) | |
| May 22, 2026 | 2026 (Q1) | 22.4523.12 | 1.38 | 1573.33% (+21.74) | |
| Feb 27, 2026 | 2025 (Q4) | 10.569.39 | 2.76 | 240.00% (+6.63) | |
| Nov 20, 2025 | 2025 (Q3) | 2.461.66 | 2.49 | -33.33% (-0.83) | |
| Aug 29, 2025 | 2025 (Q2) | 4.023.22 | 7.74 | -58.33% (-4.51) | |
| May 23, 2025 | 2025 (Q1) | 1.741.38 | 7.46 | -81.48% (-6.08) | |
| Feb 28, 2025 | 2024 (Q4) | 2.272.76 | 4.88 | -43.40% (-2.12) | |
| Nov 27, 2024 | 2024 (Q3) | 3.322.49 | 4.42 | -43.75% (-1.93) | |
| Aug 30, 2024 | 2024 (Q2) | 7.047.74 | 9.58 | -19.23% (-1.84) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
