Devin Sangoi's questions to Frontline Plc (FRO) leadership • Q2 2024
Question
Devin Sangoi from TEJ Investments asked about the insurance situation for the 'dark fleet,' the risk of lower oil demand from a potential US recession and slow Chinese recovery, and future capital allocation plans given the potential for high cash flow. He also inquired about the current view on asset acquisition opportunities.
Answer
Executive Lars Barstad explained that the lack of recognizable insurance is a defining risk of the 'dark fleet.' He stated that while a global slowdown would limit demand growth, the shrinking compliant fleet provides a buffer. The company's capital allocation policy remains focused on dividends, as current market rates do not justify asset acquisitions or newbuild orders.