Frontline Plc — Earnings Release 2014

May 27, 2014

FRO - First Quarter 2014 Results

FRO - First Quarter 2014 Results

HIGHLIGHTS

* Frontline reports a net loss attributable to the Company of $12.1 million

for the first quarter of 2014, equivalent to a loss per share of $0.13.

* Frontline reports net income attributable to the Company of $3.6 million for

the first quarter of 2014 when excluding loss on the sale of vessels,

equivalent to earnings per share of $0.04.

* Frontline will not pay a dividend for the first quarter of 2014.

* Frontline issued 8,829,063 new shares in the first quarter further to the

ATM offering launched in June 2013 and further 1,635,589 new shares in April

* In April 2014, Frontline agreed with Rongsheng shipyard to swap its two

Suezmax newbuildings on order with two similar Suezmax vessels from the same

shipyard, at a lower contract price.

FIRST QUARTER 2014 RESULTS

The Board of Frontline Ltd. (the "Company" or "Frontline") announces a net loss

attributable to the Company of $12.1 million in the first quarter, equivalent to

a loss per share of $0.13, compared with a net loss of $13.0 million in the

preceding quarter, equivalent to a loss per share of $0.15. The net loss

attributable to the Company in the first quarter includes a loss on the sale of

the VLCC Ulysses of $15.7 million. The net loss attributable to the Company in

the fourth quarter includes a net gain of $13.8 million, which was recognized on

the lease terminations of the VLCCs Front Champion and Golden Victory and a loss

of $12.7 million, which was recognized on the conversion of $25.0 million of the

Company's convertible bonds into cash and shares.

The average daily time charter equivalents ("TCEs") earned in the spot and

period market in the first quarter by the Company's VLCCs and Suezmax tankers

were $32,700 and $27,700, respectively, compared with $22,400 and $12,900,

respectively, in the preceding quarter. The spot earnings for the Company's

double hull VLCCs and Suezmax vessels were $32,500 and $27,700, respectively,

compared with $21,600 and $12,900, respectively, in the preceding quarter.

Contingent rental expense of $13.0 million in the first quarter comprises $11.7

million relating to the amended charter parties for the vessels leased from Ship

Finance International Limited and $1.3 million relating to the amended charter

parties for four vessels leased from German KGs vessels. Contingent rental

expense of $1.7 million in the fourth quarter relates to the amended charter

parties for four KG vessels.

Ship operating expenses decreased by $0.2 million. Dry docking costs decreased

by $0.6 million and this was partially offset by an increase in running

expenses.

Interest expense, net of capitalized interest, was $21.6 million in the first

quarter of which $5.9 million relates to the Company's subsidiary Independent

Tankers Corporation Limited ("ITCL").

As of March 31, 2014, the Company had total cash and cash equivalents of $111.2

million and restricted cash of $74.9 million. Restricted cash includes $74.1

million relating to deposits in ITCL.

The Company estimates average total cash cost breakeven rates for the remainder

of 2014 on a TCE basis for VLCCs and Suezmax tankers of approximately $25,200

and $17,800, respectively.

FLEET DEVELOPMENT

In March 2014, a wholly-owned subsidiary of ITCL entered into an agreement to

sell the VLCC Ulysses to an unrelated third party for net sale proceeds of $25.5

million and the vessel was delivered to the buyer on March 11, 2014.

NEWBUILDING PROGRAM

As of March 31, 2014 the Company had two Suezmax newbuilding contracts and was

committed to making newbuilding installments of $87.9 million with expected

payment in 2014.

In April 2014, the Company agreed with Rongsheng shipyard to swap its two

Suezmax newbuildings on order with two similar Suezmax vessels from the same

shipyard at a lower contract price. Installments paid to date will be allocated

to the new vessels. The first vessel was delivered on May 19, 2014 following the

payment of the final installment of $41.5 million and the second vessel is

expected to be delivered in September 2014. The Company is committed to making

payments of $41.5 million as of the date of this press release with expected

payment in September 2014.

CORPORATE

The Company issued 8,829,063 new ordinary shares under the ATM program during

the first quarter. 95,340,776 ordinary shares were outstanding as of March

31, 2014, and the weighted average number of shares outstanding for the quarter

was 93,841,670.

The Company issued 1,635,589 new shares under the ATM program during April

2014. 96,976,365 ordinary shares were outstanding as of the date of this press

release.

THE MARKET

The market rate for a VLCC trading on a standard 'TD3' voyage between the

Arabian Gulf and Japan in the first quarter of 2014 was WS 51, representing a

decrease of WS 2 point from the fourth quarter of 2013 and WS16 above the first

quarter of 2013. The flat rate decreased by 6.7 percent from 2013 to 2014.

The market rate for a Suezmax trading on a standard 'TD5' voyage between West

Africa and Philadelphia in the first quarter of 2014 was WS 79, representing an

increase of WS 13 points from the fourth quarter of 2013 and an increase of WS

21 points from the first quarter of 2013. The flat rate decreased by 6 percent

from 2013 to 2014.

Bunkers at Fujairah averaged $611/mt in the first quarter of 2014 compared to

$615/mt in the fourth quarter of 2013. Bunker prices varied between a high of

$627/mt on January 15th and a low of $599/mt on March 12(th).

The International Energy Agency's ("IEA") May 2014 report stated an OPEC crude

production of 30.0 million barrels per day (mb/d) in the first quarter of 2014.

This was an increase of 0.2 mb/d compared to the fourth quarter of 2013.

The IEA estimates that world oil demand averaged 91.3 mb/d in the first quarter

of 2014, which is a decrease of 1.1 mb/d compared to the previous quarter. IEA

estimates that world oil demand in 2014 will be 92.8 mb/d, representing an

increase of 1.5 percent or 1.4 mb/d from 2013.

The VLCC fleet totalled 627 vessels at the end of the first quarter of 2014,

four vessels up from the previous quarter. Five VLCCs were delivered during the

quarter, one was removed. The order book increased by 12 vessels and counted 94

vessels at the end of the first quarter, which represents 15 percent of the VLCC

fleet.

The Suezmax fleet totalled 449 vessels at the end of the first quarter, up three

from 446 vessels at the end of the previous quarter. Three vessels were

delivered during the quarter whilst none were removed. The order book counted

40 vessels at the end of the first quarter, which represents approximately nine

percent of the Suezmax fleet.

STRATEGY AND OUTLOOK

As of March 31, 2014, the Company had total debt and lease obligations,

excluding non-recourse debt in ITCL, of $1,044 million comprised of $718 million

in capital lease obligations to Ship Finance, $76 million in notes payable to

Ship Finance, $60 million in capital lease obligations to German KGs and $190

million in convertible bond loan. A full repayment of this debt is, to a large

extent, dependent on a sustained improvement in tanker rates going forward.

In the event that cash flow from operations does not enable Frontline to satisfy

short term or medium to long term liquidity requirements, Frontline will have to

consider alternatives, such as raising equity or selling assets, establish new

loans or refinance existing arrangements. If no additional equity can be raised,

assets sold, new loans established or existing arrangements refinanced, there is

a risk that Frontline will not have sufficient cash to repay the existing $190

million convertible bond loan at maturity in April 2015. Such a situation might

force a restructuring of the Company, including modifications of charter lease

obligations and debt agreements.

The Company is also committed to make newbuilding installments of $41.5 million

as of the date of this press release with expected payment in September 2014

relating to one newbuilding after having taken delivery of one newbuilding May

19, 2014, which was financed by $41.5 million cash on hand. The Company expects

to partly finance these payments with bank debt that it intends to arrange.

The balance sheet has been strengthened after March 31, 2014 from the raising of

$6.3 million in new equity in April 2014. The Board is actively monitoring the

situation and looking into opportunities to restructure the balance sheet and

further improve the Company's financial position.

The recent negative development in the tanker market is likely to give a weaker

operating result (excluding one time gains and losses) in the second quarter.

FORWARD LOOKING STATEMENTS

This press release contains forward looking statements. These statements are

based upon various assumptions, many of which are based, in turn, upon further

assumptions, including Frontline management's examination of historical

operating trends. Although Frontline believes that these assumptions were

reasonable when made, because assumptions are inherently subject to significant

uncertainties and contingencies which are difficult or impossible to predict and

are beyond its control, Frontline cannot give assurance that it will achieve or

accomplish these expectations, beliefs or intentions.

Important factors that, in the Company's view, could cause actual results to

differ materially from those discussed in this press release include the

strength of world economies and currencies, general market conditions including

fluctuations in charter hire rates and vessel values, changes in demand in the

tanker market as a result of changes in OPEC's petroleum production levels and

world wide oil consumption and storage, changes in the Company's operating

expenses including bunker prices, dry-docking and insurance costs, changes in

governmental rules and regulations or actions taken by regulatory authorities,

potential liability from pending or future litigation, general domestic and

international political conditions, potential disruption of shipping routes due

to accidents or political events, and other important factors described from

time to time in the reports filed by the Company with the United States

Securities and Exchange Commission.

The Board of Directors

Frontline Ltd.

Hamilton, Bermuda

May 26, 2014

Questions should be directed to:

Jens Martin Jensen: Chief Executive Officer, Frontline Management AS

+47 23 11 40 99

Inger M. Klemp: Chief Financial Officer, Frontline Management AS

+47 23 11 40 76

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1788644]