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Frontline Ltd.

Topic: Company

 From HandWiki - Reading time: 10 min

Frontline PLC
TypePublicly traded limited company
Short description: Stock exchange located in Oslo, Norway

[ ⚑ ] 59°54′31.31″N 10°44′52.06″E / 59.9086972°N 10.7477944°E / 59.9086972; 10.7477944

Oslo Stock Exchange
Oslo stock exchange (Photo: Erik Storm / StockLink iMarkedet
TypeStock exchange
LocationOslo, Norway
Coordinates [ ⚑ ] 59°54′31.31″N 10°44′52.06″E / 59.9086972°N 10.7477944°E / 59.9086972; 10.7477944
Founded1819
OwnerEuronext
Key peopleHåvard S. Abrahamsen (CEO)
No. of listings220 (May 2017) [1]
Market capNOK 4 644 billion (June 2017) [1]
VolumeNOK 4.6 billion (2017)
IndicesOBX, OSEAX
Websitehttps://www.oslobors.no

Oslo Stock Exchange (Norwegian: Oslo Børs) (OSE: OSLO) is a stock exchange within the Nordic countries and offers Norway’s only regulated markets for securities trading today. The stock exchange offers a full product range including equities, derivatives and fixed income instruments.

The Euronext consortium of European stock exchanges controls Oslo Stock Exchange as of June 2019.[2]

Market

Oslo Børs is today an online market place where all trading is done through computer networks. Trading starts at 09:00am and ends at 04:30pm local time (CET) on all days of the week except weekends and holidays declared by Oslo Børs in advance.

There are three markets for listing and trading on the stock exchange: Oslo Børs is the largest market place for listing and trading in equities, equity certificates, ETPs (exchange traded funds and notes), derivatives and fixed income products. Established in 1819, first as a commodity exchange. Equities and bonds listed and traded from 1881.

Oslo Axess was established in May 2007 as an alternative to Oslo Børs for listing and trading in shares.

Nordic ABM was established in June 2005 as an alternative bond market.

Merkur Market is a multilateral trading facility and was established in January 2016. The market place is not subject to the Stock Exchange Act or the Stock Exchange Regulations. Merkur Market is best suited for smaller and medium-sized companies or large companies that do not satisfy the admission requirements or do not wish to be fully listed on a regulated market.[3]

Oslo Access

Oslo Axess is a regulated and licensed market under the auspices of the Oslo Stock Exchange. The purpose is to promote growth among smaller companies, and give them the benefits achieved by having shares traded on a regulated market.

General

Oslo Axess is intended for companies seeking listing on a regulated market, but that does not meet the requirements for listing on the Oslo Stock Exchange. Investors get protection and a seal of approval by the Oslo Axess, but this will however not be as comprehensive as for companies on the stock exchange. The main target group are small and medium-sized companies, including pre-commercial companies. Oslo Axess provides, like the regular stock exchange, access to capital, awareness, growth and liquidity for all listed companies. It will serve as a springboard for companies with ambitions to be listed on the stock exchange in the future. {{Citation needed|date=November 2011} ices for trade as the Oslo Stock Exchange.

Licensing

Oslo Axess has a license from the Ministry of Finance to act as a regulated marketplace for trading in Norway . Basically, the same laws as the Oslo Stock Exchange. The first working day of the Oslo Axess was 2 May 2007.

See also

  • List of companies listed on Oslo Axess
  • Oslo Stock Exchange

Shares

Norwegian public limited companies and equivalent foreign companies can apply for their shares to be listed on Oslo Børs or Oslo Axess. It is up to the company itself to apply to be admitted to trading, but the company must meet the applicable requirements, which include the number of owners (range), number of shares, market value and history. To be listed the exchange includes strict requirements on the treatment of confidential information. Companies that meet the requirements for listing can much easier get access to capital through share issues. Many investors only invest in securities listed on a stock exchange, because those papers are easier to sell.

Indices

OBX – The index comprises the 25 most traded shares listed on Oslo Børs. The OBX index is tradable, meaning that you can buy and sell listed futures and options on the index. Put another way, you can get the same exposure by purchasing an index product as if you buy all the shares (weighted) included in the index. The rating is based on a six-month trading period. The index is adjusted every third Friday in June and December. OSEBX – The Oslo Børs Benchmark Index (Norwegian: Hovedindeks) is an investable index containing a representative selection of all listed shares on Oslo Børs. The OSEBX is revised on a half year basis and the changes are implemented on December 1 and June 1. OSEFX – The Oslo Børs Mutual Fund Index (Norwegian: Fondsindeks) has the same constituents as OSEBX but applies a weight capping to comply with UCITS.

History

Oslo Børs was established by a law of September 18, 1818. Trading on Oslo Børs commenced on April 15, 1819. In 1881, Oslo Børs became a stock exchange, which means securities were listed. The first listing of securities contained 16 bond series and 23 stocks, including the Norwegian central bank (Norges Bank). Oslo Børs cooperates with London Stock Exchange on trading systems. The exchange has also a partnership with the stock exchanges in Singapore and Toronto (Canada) for a secondary listing of companies. The stock exchange was privatized in 2001, and is, after the merger in 2007, 100% owned by Oslo Børs VPS Holding ASA.

Building

Oslo Børs Building 2014

The over 190-year-old stock exchange building has been the subject of many long debates about how the building should be managed and designed over the years. Several of Christiania's (the name of Oslo between 1624 and 1925) best known business men fought for years to get approved and funded the construction of a stock exchange in Christiania, the capital of Norway from 1814.

In 1823, a building committee was appointed to consider the various suggested drawings at the time. The committee chose the architect Christian H. Grosch's proposal. On July 14, 1826, the Ministry approved the final plans of drawings and budgets. In 1828, it was called Norway's first monumental building, completed on the site called Grønningen, the first public park in Christiania.

See also

  • List of companies listed on the Oslo Stock Exchange
  • List of companies delisted from Oslo Stock Exchange
  • List of stock exchanges
  • Oslo Børs Holding

References

  1. ↑ 1.0 1.1 "Facts and Figures May 2017". Oslo Børs. https://www.oslobors.no/ob_eng/Oslo-Boers/Statistics/Facts-and-figures/2017-Facts-and-figures-May-2017. 
  2. ↑ https://www.osloborsvps.no/obvps_eng/Oslo-Boers-VPS/The-share/Top-20-Shareholders
  3. ↑ "Oslo Børs - Most traded stocks". https://www.oslobors.no/ob_eng/Oslo-Boers/About-Oslo-Boers/News-from-Oslo-Boers/Unique-bell-ceremony-to-open-Merkur-Market. 

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NYSE: FRO
Russell 2000 Company
IndustryOil tanker shipping
Founded1985
HeadquartersLimassol, Cyprus
Key people
John Fredriksen (Chairman and President)[1]
RevenueUS$956.38 million (2019)
US$139.97 million (2019)
Total assetsUS$3.798 billion (end 2010)[2]
Total equityUS$759.0 million (end 2010)[2]
OwnerJohn Fredriksen (40.2%)[1]
Number of employees
70 (end 2010)[2]
Websitefrontline.bm

Frontline PLC is the world's fourth largest oil tanker shipping company , based in Limassol, Cyprus and controlled by John Fredriksen. Its primary business is transporting crude oil. As of 2008 the company had one of the world's largest tanker fleets consisting of VLCC, Suezmax and Suezmax OBO carriers (82 tankers in total with 18 more on order).[3]

History

Frontline has its origin in Frontline AB, which was founded in 1985, and which was listed on the Stockholm Stock Exchange from 1989 to 1997. Hemen Holding (a company indirectly controlled by the largest shareholder and chairman of Frontline, John Fredriksen) became the largest shareholder of Frontline in 1996. In May 1997, a decision was made at the general meeting in Frontline AB to change its domicile from Sweden to Bermuda and to list its shares on the Oslo Stock Exchange. The change of domicile was executed through a share for share exchange offer from the then newly formed Frontline in Bermuda.

Under Fredriksen the company absorbed several other companies: London and Overseas Freighters (1997), ICB (1999), and Golden Ocean (2000). These takeovers made Frontline the world's largest tanker company, a position it has retained to the present day.[4][5]

Today

As of 31 December 2010, Frontline's tanker and OBO fleet consisted of 73 vessels. The fleet consists of 44 VLCCs, which are either owned or chartered in, 21 Suezmax tankers which are either owned or chartered in and eight Suezmax OBOs which are chartered in. Frontline also had five VLCC newbuildings and two Suezmax newbuildings on order and three VLCCs under their commercial management. The company's largest shareholder is Hemen Holding Ltd., a company indirectly controlled by the chairman of Frontline, billionaire John Fredriksen, Norway's highest net worth person.

The freight market is very volatile, with standard deviations of up to 70%. From an options perspective, this is a possibility for a very large up and downside—part of this downside can be hedged away via freight derivatives. AG-Japan clean and dirty are the most liquid routes traded in the derivatives market. Frontline has a very high dividend yield, both in cash and in Ship Finance (SFL) stocks; for example, in late 2007 its annual dividend ran between 12 and 18%, depending on the fluctuating share price. SFL is an offshoot of Frontline; the offshoot is estimated to have generated 25% gains to shareholders due to the different risk in Frontline and SFL. Golden Ocean Group (GOGL), a dry bulk carrier firm, was also spun off of Frontline and listed on the Oslo Stock Exchange. GOGL is a volatile stock, and as with Frontline, dry freight derivatives are available. In 2006, Frontline started a new Floating Production Storage and Offloading (FPSO) project, Sea Production.

In June 2007, Frontline sold its entire holding of 25,500,000 shares in Sea Production. The sale of the shares was in line with Frontline's strategy to remain a pure crude oil transportation company. Frontline and Sea Production will continue a strategic partnership with respect to conversion of crude oil tankers into oil storage and production units.

On 7 April 2022 there was announced a merger between Euronav and Frontline Ltd. pending regulatory approval and ironing out of the last details.[6][7] The merger would have created the world's largest publicly listed tanker company. Euronav's largest shareholder, Compagnie Maritime Belge, opposed the merger and on 9 January 2023, Frontline announced that the merger would not take place.[8] On 9 October 2023, Frontline sold its 26% stake in Euronav to Compagnie Maritime Belge. As part of the sale, Frontline acquired 24 of Euronav's oil tankers for an aggregate purchase price of $2.35 billion USD.[9]

References

  1. ↑ 1.0 1.1 "FRONTLINE LTD. : Stock Price | BMG3682E1277 | MarketScreener". https://m.marketscreener.com/FRONTLINE-LTD-12671/company/. 
  2. ↑ 2.0 2.1 2.2 "Annual Report 2010". Frontline. http://hugin.info/182/R/1503904/438835.pdf. Retrieved 22 April 2011. 
  3. ↑ Frontline Ltd. Q2 2008 presentation
  4. ↑ Kennedy, Will (13 December 2004). "Frontline Considers Takeover Bid for Oil Tanker Rival Genmar". Bloomberg News. Archived from the original on 21 October 2012. https://web.archive.org/web/20121021020324/http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aqMpd3s9seRo&refer=us. Retrieved 20 August 2017. 
  5. ↑ Nordseth, Pål (28 February 2008). "Flink pike får lønn for strevet" (in no). Dagbladet. Archived from the original on 3 March 2016. https://web.archive.org/web/20160303234152/http://www.kjendis.no/2008/02/28/528295.html. Retrieved 20 August 2017.  Article on John Fredriksen's daughters and their connections with Frontline.
  6. ↑ Hand, Marcus (7 April 2022). "Frontline and Euronav plot merger in all stock deal". https://www.seatrade-maritime.com/tankers/frontline-and-euronav-plot-merger-all-stock-deal. 
  7. ↑ Dixon, Gary (7 April 2022). "World-leading tanker giant born as Frontline and Euronav reveal $4.2bn merger". https://www.tradewindsnews.com/tankers/world-leading-tanker-giant-born-as-frontline-and-euronav-reveal-4-2bn-merger/2-1-1198097. 
  8. ↑ "Oil tanker groups Frontline and Euronav scrap $4.2 billion merger". Reuters. 10 January 2023. https://www.reuters.com/markets/deals/oil-tanker-groups-frontline-euronav-terminate-merger-2023-01-09/. 
  9. ↑ "FRO – Fully funded acquisition of 24 modern VLCCs from Euronav NV". https://www.frontlineplc.cy/fro-fully-funded-acquisition-of-24-modern-vlccs-from-euronav-nv/. 



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