Frontline Plc Intrinsic Value Calculator – FRONTLINE PLC Reports Fourth Quarter Earnings Results for 2022 Fiscal Year on March 1, 2023.
March 19, 2023
Earnings Overview
On March 1, 2023, FRONTLINE PLC ($NYSE:FRO) released their financial results for the fourth quarter of the 2022 fiscal year, which ended on December 31, 2022. Total revenue increased by 1113.5%, amounting to USD 240.0 million, compared to the same period in the previous year. Net income also significantly rose over the same period, by 148.3%, to USD 530.1 million.
Transcripts Simplified
Frontline had a good quarter and the VLCCs (Very Large Crude Carrier ships) were the stars, with average weighted market earnings flirting with 2004 highs. The market is still not recognizing how strong this quarter was. Chinese imports are back above pre-COVID levels and VLCC shipments to China are at all-time highs.
Going forward, the three major themes that will determine the upcycle are oil demand, fleet supply and trade dynamics. Fleet growth is expected to turn negative in 2024 and 2025, with 12% of the fleet currently above 20 years.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Frontline Plc. More…
| Total Revenues | Net Income | Net Margin |
| 1.43k | 472.72 | 25.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Frontline Plc. More…
| Operations | Investing | Financing |
| 370.89 | -239.47 | 10.03 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Frontline Plc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.78k | 2.51k | 10.19 |
Key Ratios Snapshot
Some of the financial key ratios for Frontline Plc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.3% | 23.6% | 40.0% |
| FCF Margin | ROE | ROA |
| 3.7% | 16.6% | 7.5% |
Share Price
The stock opened at $19.1 and closed at $18.5, a decrease of 1.9% from the previous closing price of $18.9. The earnings report was generally well-received by investors, who were pleased with the strong results. Live Quote…
Analysis – Frontline Plc Intrinsic Value Calculator
At GoodWhale, we have carefully analyzed the financials of FRONTLINE PLC and our proprietary Valuation Line has estimated the intrinsic value of its share to be around $9.5. However, the stock is currently trading at $18.5, which is 94.4% overvalued compared to its true value. Hence, investors should be aware of the situation before investing in FRONTLINE PLC’s stocks and exercise due diligence. More…
Peers
The company’s main competitors are DHT Holdings Inc, Teekay Tankers Ltd, and International Seaways Inc.
– DHT Holdings Inc ($NYSE:DHT)
DHT Holdings is a shipping company that owns and operates crude oil tankers. The company’s fleet consists of very large crude carriers (VLCCs) and Aframax tankers. DHT Holdings transports crude oil around the world.
DHT Holdings has a market cap of 1.55B as of 2022. The company has a Return on Equity of -0.32%.
– Teekay Tankers Ltd ($NYSE:TNK)
Teekay Tankers Ltd is a Bermuda-based holding company engaged in the ownership and operation of crude oil tankers. The Company’s operating segments include Aframax, Suezmax, VLCC and LR2/LR1. As of December 31, 2016, it had a fleet of 61 double-hull crude oil tankers, including 33 Aframax, four Suezmax, 21 LR2 and three LR1 tankers, with an average age of approximately seven years.
– International Seaways Inc ($NYSE:INSW)
International Seaways Inc is a leading global provider of seaborne transportation services. The company has a market cap of 2.2B as of 2022 and a Return on Equity of 0.16%. The company operates a fleet of vessels that transport crude oil, petroleum products, dry bulk commodities, and containers around the world. The company has a strong presence in the Americas, Europe, Asia, and the Middle East.
Summary
FRONTLINE PLC has reported impressive earnings results for their fourth quarter of the 2022 fiscal year, with total revenue coming in at USD 240.0 million, representing a 1113.5% increase from the previous year. Net income also rose to USD 530.1 million, a 148.3% increase year over year. This is a strong indication that investing in FRONTLINE PLC can potentially be profitable, especially in light of the company’s continued success and increasing revenues. Additionally, the company has consistently demonstrated an ability to generate impressive returns and financial performance, making it an attractive investment opportunity for investors looking for long-term returns.
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