Devon Sangoy

Devon Sangoy asked about the sustainability of floating storage demand, contrasting it with the COVID-19 period. He also questioned the tightening of sanctions on the 'dark fleet' by various regulatory bodies (US, UK, EU) and sought an outlook for Q1 2026 rates compared to Q4 2025 and Q1 2025.

Answer

CEO Lars Barstad clarified that current floating storage is primarily due to logistics and weather, not commercial contango, unlike the COVID-19 period which benefited from zero interest rates. He confirmed that sanctions on the dark fleet are indeed tightening, with high correlation among regulatory bodies, and this pressure is expected to continue. While acknowledging market volatility, Mr. Barstad stated that Frontline sees no current weakness and expects an extremely tight physical shipping market, driven by key fundamentals not present in Q4 last year, suggesting a potentially strong Q1 2026.

Devon Sangoy asked about the sustainability of floating storage demand, comparing it to the COVID-19 period. He also inquired if sanctions on the 'dark fleet' by various entities (US, UK, EU) are becoming tighter and sought an outlook for Q1 compared to Q4, considering current market drivers.

Answer

CEO Lars Barstad explained that current floating storage is primarily due to logistics, distress, or weather, unlike the commercial storage during COVID-19 which was driven by demand disappearance and zero interest rates. He confirmed that sanctions are indeed getting tighter, with high correlation and overlap between regulatory bodies, and this pressure is likely to continue. Regarding the Q1 outlook, Mr. Barstad acknowledged market volatility but stated that Frontline sees no current weakness and that key market fundamentals and drivers are present now that were not in Q4 last year, suggesting Q1 could be as strong or better than Q4.