Why Frontline Stock Is Moving Higher Tuesday

Frontline Ltd FRO shares are trading higher Tuesday after the company announced termination of its combination agreement with Euronav.

What To Know: Frontline has terminated the combination agreement it entered into with Euronav in July 2022. As a result, the company will refrain from making a voluntary conditional exchange offer for all outstanding Euronav shares. Frontline will also no longer seek a listing on Euronext Brussels.

"We regret that we could not complete the merger as envisaged in July 2022, as that would have created the by far largest publicly listed tanker company. At the same time, both companies have independently very large fleets of crude oil and product tankers, and are already enjoying economies of scale as evidenced by our respective recent financial reports," said Lars H. Barstad, CEO of Frontline.

"Frontline will with its efficient operations continue to capture value as this cycle unfolds, and remain focused on maximizing dividend capacity per share," Barstad added.

Frontline is a shipping company engaged in the seaborne transportation of crude oil and oil products. 

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FRO Price Action: Frontline has a 52-week high of $14.85 and a 52-week low of $6.10.

Frontline shares are up 23.9% at $14.03 at time of publication, according to Benzinga Pro.

Photo: Lorenzo Cafaro from Pixabay.