Key Highlights

● Net profit was $659.2 million, or $2.96 per share, the best quarterly profit.

● VLCC spot earnings averaged $152,700 a day in the second quarter.

● The board declared a $2.61 dividend plus a $0.80 special dividend.

● Borrowings fell to $2,434.8 million from $3,067.7 million at the end of 2025.

Frontline plc (NYSE:FRO), whose ordinary shares also trade on the Oslo Stock Exchange, owns a fleet of crude oil and product tankers. It reported second-quarter 2026 results on August 28, 2026, after board approval on August 27. Net profit was $659.2 million, or $2.96 per share, which the company called its best quarterly profit. Adjusted profit was $580.2 million, or $2.61 per share, on revenue of $943.3 million.

Rates explain the result. Spot time charter equivalent earnings for very large crude carriers averaged $152,700 a day in the second quarter, against $103,500 in the first and $124,600 for the half year. Suezmax tankers earned $111,500 and LR2/Aframax vessels $92,400. For the third quarter, 86% of VLCC days were already contracted at $156,900, though management cautioned that full-quarter spot earnings should come in below contracted levels because of ballast days.

Dividends and how they are paid

The board declared a second-quarter cash dividend of $2.61 per share, matching adjusted earnings per share, plus a one-off special dividend of $0.80 once two 2017-built VLCCs were sold. The sale of those vessels, for a combined $270.0 million, was agreed in July, with deliveries in August and September. The company's notice lists the last day including the right as September 16, ex-dividend date September 17 and record date September 18, with payment on or about September 28. Shares registered in Norway receive payment in Norwegian kroner on or about September 30.

Dividends of this size depend on freight rates and are not a fixed income stream. Earlier 2026 payments were $1.03 per share, paid in March, and $1.55, paid in June, so the latest figure is a step up that may not repeat.

Balance sheet and fleet

At June 30, 2026 the company owned 73 vessels: 36 VLCCs, 19 Suezmaxes and 18 LR2/Aframaxes. Borrowings were $2,434.8 million, down from $3,067.7 million at the end of 2025, while cash was $321.4 million. Management expects its weighted average margin on loans to fall from 178 to about 126 basis points as refinancings complete in the third quarter. Twelve-month cash breakeven rates were $23,800 a day for VLCCs, far below current earnings.

Fleet renewal continues. Eight ECO VLCCs were sold for $831.5 million, two Suezmaxes for $140.0 million, and the two 2017-built VLCCs for $270.0 million, with a gain of about $110.0 million expected in the third quarter. Three newbuildings remain, the last due in the first quarter of 2027.

Rate Cycles and Strait of Hormuz Disruption

The S&P 500 is a diversified basket dominated by US domestic businesses, while Frontline's earnings swing with tanker rates, geopolitical trade disruption and sanctions.

Management points to the Middle East conflict and expects tanker tailwinds from inventory replenishment, but those are views. Risks include cyclical rates and vessel values, disruption around the Strait of Hormuz and the Red Sea, tariffs, covenant compliance and loan-to-value clauses, counterparty performance and environmental regulation. Floating-rate debt is linked to SOFR, and the company estimates that a one-percentage-point rise would add about $22.1 million to annual interest expense. The filing gives two figures for undrawn revolving credit, $1,242.2 million at the report date and $901.4 million at June 30.