Frontline reports strongest quarterly profit for over 20 years amid ‘extraordinary’ market conditions

Tanker giant Frontline reported Q1 profit of $559.1 million and adjusted profit of $344.9m, its strongest quarterly result since Q4 2004, on revenues of $714.2 million.

The company achieved average daily spot time charter equivalent earnings (TCEs) for VLCCs, Suezmax tankers and LR2/Aframax tankers in the first quarter of $103,500, $72,400 and $50,700 per day, respectively.

Vessel sales during the quarter included eight of its oldest first generation VLCCs built 2015-16 for $210.9 million; in April it agreed to sell its two oldest  Suezmax tankers built 2015-15 for a total $140.0 million.

In April and May it secured two one-year time charters on newly delivered VLCCs at a rate of $110,000 per day.

Lars H. Barstad, CEO of Frontline Management AS, commented: “The first quarter of 2026 was marked by high volatility. Tanker markets are said to thrive in unstable conditions, and the effective closure of the Strait of Hormuz led to rapid shifts in trading patterns and owners’ behaviour.

“While removing roughly one-fifth of global seaborne oil exports was expected to materially weaken markets, increased ton-miles, longer trade lanes, and broader inefficiencies supported vessel utilisation and kept Frontline’s earnings strong throughout the quarter. Despite the opaque situation in the Middle East, the fundamentally firm market has carried into the second quarter, and Frontline has sought to secure parts of its near-term revenues during these extraordinary market conditions. 

“We are increasingly constructive on the longer-term outlook, believing heightened global focus on energy security, together with more diversified oil sourcing by key importers in Asia, will benefit the tanker market for years to come. With its efficient business model and substantial tanker exposure, Frontline is ready to continue optimising shareholder returns as we proceed.”