Frontline Ltd.

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Frontline Ltd.

Type	Public (NYSE: FRO)
Founded	1985
Headquarters	HQ in Hamilton, Bermuda
Key people	John Fredriksen, Chairman and CEO Tor Olav Trøim, Vice President
Industry	Tanker
Revenue	$606.839 Million USD (2005)
Website	www.frontline.bm

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Frontline Ltd. (OSE: FRO NYSE: FRO) was founded as Frontline AB in 1985, with seat in Hamilton, Bermuda and listed on the Stockholm Stock Exchange.

1 History
2 Today
3 Management
4 External links

[edit] 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 Ltd. (a company indirectly controlled by the largest shareholder and chairman of Frontline, Mr. Fredriksen) became the largest shareholder of Frontline AB 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.

[edit] Today

As of 2004, Frontline is the world's largest tanker company. The company's fleet consists of 66 tankers, totaling 16.4 million dead weight tons. 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 ticker code is FRO.OL. The freight market is a very volatile market, 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 stocks. SFL is an offshoot of Frontline; the offshoot is estimated to have generated 25% gains to shareholders due to the different risk in FRO and SFL. GOGL.OL {Golden Ocean Group Ltd), a dry bulk carrier firm, was also spun off of FRO and listed on the Oslo Stock Exchange. GOGL is a volatile stock. As with FRO, dry freight derivatives are available. In 2006, Frontline has started a new FPSO project.