Frontline announced seven very large crude carrier (VLCC) time‑charter‑out agreements at a daily rate of $76,900, beginning in late January and running through April 2026. The contracts lock in a daily revenue of $538,300, a significant boost to the company’s earnings profile.
The $76,900 rate is the highest VLCC charter rate seen in more than a decade, eclipsing the Q3 2025 spot time‑charter equivalent (TCE) average of $34,500 and the Q2 2025 average of $43,100. The surge reflects a tightening supply of VLCCs, geopolitical constraints that limit new build deliveries, and sustained demand for long‑haul crude transport.
By securing one‑year charters, Frontline captures premium pricing while keeping the remainder of its fleet spot‑exposed, preserving upside if rates rise further. The move aligns with the company’s recent fleet renewal, which added nine new ECO VLCCs, and positions it to benefit from a structural supply collapse.
The $538,300 daily income translates to roughly $196 million over a 365‑day contract, adding a predictable cash‑flow stream that improves operating margin and supports the company’s debt‑repayment strategy and free‑cash‑flow generation.
Analysts have noted the strong market conditions, with some upgrading ratings and raising price targets. The announcement reinforces Frontline’s leadership in the VLCC segment and signals confidence in sustained high rates.
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