TLDR
- Frontline Q2 profit doubles to $77.5M on stronger tanker rates, $0.36 dividend
- Tanker surge fuels Frontline’s $480M Q2 revenue, $77.5M profit, dividend lift
- Frontline rides strong TCE earnings, profit soars to $77.5M, $0.36 payout
- Fleet moves, rising oil demand boost Frontline’s Q2 profit and cash dividend
- Frontline Q2 shines: $480M revenue, $77.5M profit, $0.36 dividend declared
Frontline plc reported strong second-quarter earnings for 2025, driven by improved TCE rates and strategic fleet actions. The company posted a profit of $77.5 million and declared a cash dividend of $0.36 per share. The stock closed at $20.72 on August 28, showing a 0.97% gain with a slight pre-market uptick.
Higher Profit and Revenue Boost Quarterly Results
Frontline delivered $480.1 million in revenue during the second quarter of 2025, a solid performance compared to prior quarters. Net profit more than doubled quarter-over-quarter, rising from $33.3 million to $77.5 million. Adjusted profit increased to $80.4 million, reflecting higher earnings per share of $0.36.
The rise in adjusted profit followed a jump in spot TCE earnings, particularly for VLCCs at $43,100 per day. Suezmax and LR2/Aframax tankers also recorded strong daily earnings of $38,900 and $29,300, respectively. These gains pushed total TCE revenues up from $241.1 million to $283.0 million.
Strategic Moves Bolster Fleet and Financial Strength
In April, Frontline secured a $1.29 billion loan facility to refinance debt on 24 VLCCs, three years ahead of maturity. The refinancing aimed to reduce the margin and lock in favorable lending terms for the long term. The loan carries a five-year tenor and is priced at SOFR plus a 170-basis-point margin.
The company agreed to sell its oldest Suezmax tanker, built in 2011. The $36.4 million sale is expected to generate $23.7 million in net cash proceeds in Q3, yielding a gain of approximately $6 million for the company.
Frontline ended the quarter with a modern fleet of 81 vessels, 45 of which are fitted with scrubbers. Most of the fleet qualifies as ECO vessels with advanced fuel-efficiency features. The average fleet age stood at 7.1 years, positioning the company competitively.
Market Conditions and Outlook Favor Continued Growth
Tanker demand surged due to rising oil consumption, which reached 103.7 million barrels per day in Q2 2025. The EIA expects demand to climb further to 104.5 million barrels per day in Q4. Global oil supply is forecasted to reach 106.6 million barrels per day by year-end.
Geopolitical developments, especially in the Middle East and with Russian sanctions, disrupted trade routes and supported compliant tonnage. Frontline benefited from tightening sanctions and shifting oil flows as importers like India turned to sanctioned-free alternatives. Market expectations point to higher utilization and improved freight rates in the upcoming quarters.
Although new tanker deliveries remain limited, aging fleets and tight recycling trends support a positive near-term supply-demand balance. Over 16% of the VLCC fleet is more than 20 years old, while over 31% of the LR2 fleet exceeds 15 years. This dynamic provides further opportunity for Frontline’s young, efficient fleet to outperform.
