Tanker company Frontline Ltd (NYSE:FRO) reported on Friday a smaller third-quarter loss than what analysts had forecast as it looked ahead to an improvement after 18 challenging months.
Shares rallied 1.6% to $6.33 per share in morning trading on the New York Stock Exchange.
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For the third quarter, the Hamilton, Bermuda-based company reported a net loss attributable to the company adjusted for certain non-cash items of $8.4 million, or $0.05 per share, compared with analysts' consensus of $0.13 per share. The company posted a loss of $0.14 per share for the period a year earlier.
The company reported revenue of $89 million for the quarter ended in September, surpassing the consensus estimate by almost 12%. It recorded revenue of almost $76 million a year earlier.
"Tanker markets are beginning to rebalance following 18 months of extremely challenging conditions, and we are optimistic that the market has now exited the cycle trough,” CEO Robert Hvide Macleod said in a statement.
He added that while oil inventory draws, fleet growth and production cuts have been working against the company, those factors are now starting to turn in Frontline’s favor.
Contact Dennis Fitzgerald at dennis@proactiveinvestors.com