Frontline Posts 2Q Earnings Outperform

Frontline Ltd. (NYSE: FRO) posted strong 2q results and is issuing a $0.75 dividend, Dahlman Rose reports, and though the summer tanker market was weak and could pressure 3Q2010, Frontline is believed to be well positioned to outperform its large fleet tanker competitors.

2Q EPS were $0.92, above Dahlman's $0.84 estimate and consensus of $0.67. Higher than expected revenues are the cause, as the company's double hull VLCC and Suezmax fleets posted TCE rates of $50,000/day and $30,000/day for the quarter, according to Dahlman.

Dahlman maintains its Buy rating and $42 price target for Frontline Ltd., which closed yesterday at $18.37.

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