RS Platou Markets downgraded Frontline 2012

RS Platou Markets has removed Frontline 2012’s buy rating as the focus of the company shifts from growth to spin-offs.
RS Platou Markets at the Norwegian finance house have downed the John Fredriksen-led company to neutral suggesting both its crude and products tankers will follow its gas and capesize fleets into pure play ventures.
RS Platou Markets's quarterly report, analysts Herman Hildan and Frode Morkedal say Frontline 2012’s 10 crude tankers are likely to “find their way home” to Fredriksen’s Frontline.
Frontline holds a 5% stake in the company established as part of its previous bailout, shares that are today worth around $80m.
Oslo and New York-listed Frontline has warned numerous times it lacks the cash to make a $190m bond repayment next year and may need to complete a second post financial crisis overhaul.
Frontline 2012 bought the crude tankers from the old Frontline as part of a Fredriksen’s sponsored bailout backed by cash from Seadrill. Frontline 2012’s fleet peaked at 70 ships, but its VLGCs are now with Avance Gas and its huge capesize newbuilding programme with Knightsbridge.