ShippingWatch

Fearnley: Frontline will be strong in 2013

Tank shipping company Frontline 2012, controlled by Norwegian shipowner John Fredriksen, will grow significantly in the next 1-2 years. With investments in modern and energy efficient ships, the company looks set to become a leading, global shipping company, says the analysts at Fearnley.

Tank shipping company Frontline 2012, which is controlled by Norwegian shipowner John Fredriksen, will grow significantly over the next 1-2 years, with an opportunity to become leading, global shipping company, according to an investor recommendation by Oslo-based analysts Fearnley.

"Owners and competitors with sailing ships are getting more fragile as long as the shipping markets remain weak and their ability and willingness for new investments are getting pulverized. With strong shareholder support and investments in modern more fuel efficient vessels at the bottom of the cycle, we believe Frontline 2012 will have cash break-even levels way below most competitors and will generate positive cash flows even when markets are balancing on cash break-even levels," says the recommendation from Fearnley, which notes that the shipping company performed significantly better in the 3rd quarter, reaching VLCC spot rates far above average.

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