Devin [Unknown]'s questions to Frontline Plc (FRO) leadership • Q4 2024
Question
An analyst identified as Devin from an unknown firm asked about Frontline's strategy for forward bookings in a volatile market. He also posed hypothetical questions about the market impact of a potential U.S.-Russia truce lifting sanctions, and a 'Trump 2.0' scenario where Iranian oil exports are severely curtailed.
Answer
Executive Lars Barstad explained their spot market strategy involves adjusting voyage lengths based on market outlook and avoiding time charter cover as current rates do not offer a reasonable return. Regarding a lift on Russian sanctions, he predicted a reversal of trade patterns that would be temporarily negative for Suezmaxes but ultimately beneficial for VLCCs. In a scenario of reduced Iranian exports, he stated that China would need to source replacement crude from compliant markets, creating incremental demand for 30-45 VLCCs annually.