Deutsche Bank has taken a significant shareholding in Frontline Ltd. in anticipation of robust results for the New York and Oslo-listed tanker owner for the third quarter (Q3), reports said. The German bank acquired 277,353 shares in the world's largest supertanker specialist to take its stock ownership to 5.10%, said reports Monday. The current value of that lot of 277,353 shares, according to Frontline's share price at the end of New York and Oslo trading on Monday, is close to $9.4 million. Analysts say the move was “in anticipation of strong third quarter earnings and dividend payout from Frontline, following competitive numbers from peers OSG and Genmar.”
Q3 net profit for New York-listed OSG (Overseas Shipholding Group, Inc) soared 644% to $197.8 million from the $26.6 million earned in the same period last year.
New York-listed GenMar (General Maritime Corporation) achieved a 116% year-on-year rise in Q3 net profit.
Both OSG and GenMar attributed the rise in profits to surging TCE earnings in Q3.
OSG in particular said that the growth in TCE revenues “reflects an increase in spot charter rates for VLCCs of more than 220% to $113,358 per day.”
Frontline has the world's largest fleet of VLCCs and the bulk of its supertankers are active in the spot markets.
An industry watcher, meanwhile, has commented that Frontline's share prices, in comparison to other shipping stocks, have been relatively less damaged by ongoing turmoil in the global financial markets.
According to the share price benchmark table on its website, Frontline's Oslo-traded shares have gone down 22% over the past three months, compared to a 47.3% and 37.4% loss for OSG and GenMar respectively.
And over the past 52 weeks, Frontline shares on Oslo trading have shed just 3% compared to 47.2% for OSG and 44.7% for GenMar on New York trading.
Frontline is due to release its Q3 earnings report on November 28. Its share price picked up 5.13% by the end of trading in New York on Monday.
Q3 net profit for New York-listed OSG (Overseas Shipholding Group, Inc) soared 644% to $197.8 million from the $26.6 million earned in the same period last year.
New York-listed GenMar (General Maritime Corporation) achieved a 116% year-on-year rise in Q3 net profit.
Both OSG and GenMar attributed the rise in profits to surging TCE earnings in Q3.
OSG in particular said that the growth in TCE revenues “reflects an increase in spot charter rates for VLCCs of more than 220% to $113,358 per day.”
Frontline has the world's largest fleet of VLCCs and the bulk of its supertankers are active in the spot markets.
An industry watcher, meanwhile, has commented that Frontline's share prices, in comparison to other shipping stocks, have been relatively less damaged by ongoing turmoil in the global financial markets.
According to the share price benchmark table on its website, Frontline's Oslo-traded shares have gone down 22% over the past three months, compared to a 47.3% and 37.4% loss for OSG and GenMar respectively.
And over the past 52 weeks, Frontline shares on Oslo trading have shed just 3% compared to 47.2% for OSG and 44.7% for GenMar on New York trading.
Frontline is due to release its Q3 earnings report on November 28. Its share price picked up 5.13% by the end of trading in New York on Monday.