The hoped for recovery seems more distant after Frontline reported today:
Watch for the Safe Bulkers ( SB) report Wednesday May 28
- Frontline (FRO -16.1%) is sharply lower despite beating Q1 earnings estimates after warning the tanker market would fall in Q2.
- FRO, which has debt of more than $1B, said the downturn could cause it to raise equity, sell assets, establish new loans or refinance existing arrangements; if those measures were insufficient there was a risk it might be unable to repay a bond loan.
- FRO provided no further details on tanker rates going forward but the Baltic and International Maritime Council said recently that Q2 prices would come sharply off the peak winter month highs.
Frontline Ltd. (FRO)2.39 0.47(16.43%) 4:00PM EDTAfter Hours : 2.44 0.05 (2.09%) 4:03PM EDT – Nasdaq Real Time Price
Prev Close: 2.86 Open: 2.68 Bid: 2.40 x 3200 Ask: 2.41 x 3300 1y Target Est: 2.96 Beta: 3.51 Next Earnings Date: N/A Day’s Range: 2.36 – 2.68 52wk Range: 1.77 – 5.18 Volume: 3,181,261 Avg Vol (3m): 986,017 Market Cap: 227.86M P/E (ttm): N/A EPS (ttm): -2.37 Div & Yield: N/A (N/A)
- As we suggest many time in this blog – the shipping sector is one to watch – but put your money to work in other sectors.