Profit Figures: Frontline PLC reported a profit of $77.5 million, translating to $0.35 per share, with an adjusted profit of $80.4 million or $0.36 per share.
TCE Earnings Growth: The company's TCE earnings rose from $241 million in Q1 2025 to $283 million in Q2 2025, indicating a strong performance in the tanker market.
Fleet and Financial Stability
Fleet Composition: Frontline operates a fleet of 41 VLCCs, 21 Suezmax tankers, and 18 LR2 tankers, all of which are 100% ECO vessels, with 55% equipped with scrubbers for environmental efficiency.
Cash Reserves: As of June 30, 2025, the company holds $844 million in cash and cash equivalents, showcasing strong liquidity and financial health.
Debt Management: Frontline has no significant debt maturities until 2030 and no newbuilding commitments, contributing to its financial stability.
Market Conditions and Challenges
TCE Rate Expectations: TCE rates for VLCCs, Suezmax, and LR2/Aframax fleets fell short of expectations in Q2 2025, reflecting challenges in the tanker market.
Market Dynamics: The tanker market is facing negative fleet growth, with a record number of vessels over 20 years old, and potential volatility due to geopolitical factors and trade policies affecting crude sourcing.
Strategic Insights from Leadership
CEO's Market Outlook: Lars Barstad, CEO, noted that analysts predict bearish crude prices this winter due to increased OPEC oil supply, which may lead to a contango situation, benefiting tanker utilization.
Spot Rate Trends: The demand for compliant tankers has driven up spot rates, with a support level forming around $45,000 per day, suggesting potential for rates to exceed $50,000.
Impact of Trade Policies: Trade policies are influencing crude sourcing, with compliant fleets seeing improved utilization as India and China adjust their sourcing strategies in response to U.S. policies.
Future Market Projections
Fleet Growth Outlook: The tanker fleet is expected to experience a negative growth rate of about 0.5% in 2025, with limited new vessel deliveries anticipated before 2028, which may support a positive outlook for compliant tankers.
Strategic Positioning: Frontline is well-positioned with a modern fleet that is exposed to spot markets, benefiting from increased compliant oil exports and healthy refinery margins, creating a favorable market environment.
FRO
$22.49+Infinity%1D
Analyst Views on FRO
Wall Street analysts forecast FRO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FRO is 23.57 USD with a low forecast of 14.72 USD and a high forecast of 30.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
Wall Street analysts forecast FRO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FRO is 23.57 USD with a low forecast of 14.72 USD and a high forecast of 30.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Buy
0 Hold
1 Sell
Moderate Buy
Current: 22.750
Low
14.72
Averages
23.57
High
30.00
Current: 22.750
Low
14.72
Averages
23.57
High
30.00
Evercore ISI
NULL
to
Outperform
maintain
$22 -> $26
2025-10-28
Reason
Evercore ISI
Price Target
$22 -> $26
2025-10-28
maintain
NULL
to
Outperform
Reason
Evercore ISI raised the firm's price target on Frontline to $26 from $22 and keeps an Outperform rating on the shares. Heading into the winter season, which is traditionally a time for rising rates, the tanker market setup "looks promising," the analyst tells investors in a note on the group.
BTIG
Gregory Lewis
Buy
maintain
$25 -> $30
2025-09-17
Reason
BTIG
Gregory Lewis
Price Target
$25 -> $30
2025-09-17
maintain
Buy
Reason
BTIG analyst Gregory Lewis raised the firm's price target on Frontline to $30 from $25 and keeps a Buy rating on the shares. The firm is adjusting its model to reflect the company's modern VLCC, or Very Large Crude Carrier, heavy fleet, which should continue to outperform smaller tankers through the winter season, the analyst tells investors in a research note.
Evercore ISI Group
Jonathan Chappell
Buy
Maintains
$22 → $20
2025-04-22
Reason
Evercore ISI Group
Jonathan Chappell
Price Target
$22 → $20
2025-04-22
Maintains
Buy
Reason
Jefferies
Omar Nokta
Strong Buy
Maintains
$26 → $20
2024-12-17
Reason
Jefferies
Omar Nokta
Price Target
$26 → $20
2024-12-17
Maintains
Strong Buy
Reason
About FRO
FRONTLINE PLC is a Cyprus-based company primarily operating in the transportation sector. The Company's main focus is on seaborne transportation of crude oil and refined products. The Company owns and operates a fleet consisting of multiple VLCC, Suezmax and LR2 / Aframax tankers intended for freight of oil and cargo. The Company operates worldwide.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
