Frontline Plc — Earnings Release 2016

Feb 28, 2017

FRO - Frontline Ltd. reports results for the fourth quarter and year ended December 31, 2016

FRO - Frontline Ltd. reports results for the fourth quarter and year ended December 31, 2016

Frontline Ltd. (the "Company" or "Frontline"), today reported unaudited results

for the three months and year ended December 31, 2016:

Highlights

* Achieved net income attributable to the Company of $18.3 million, or $0.12

per share, for the fourth quarter of 2016 and $117.0 million, or $0.75 per

share, for the year ended December 31, 2016.

* Achieved net income attributable to the Company adjusted for certain non-

cash items of $34.5 million, or $0.22 per share, for the fourth quarter of

2016 and $188.9 million, or $1.20 per share, for the year ended December

31, 2016.

* Announces a cash dividend of $0.15 per share for the fourth quarter of 2016.

* Completed a public offering generating gross proceeds of $100.0 million in

December 2016.

* Frontline, together with its affiliates, acquired approximately 16.4% of the

outstanding common stock in DHT Holdings, Inc. (NYSE: DHT).

* In January, Frontline approached DHT with a proposal for a possible business

combination whereby the Company would acquire DHT in a stock-for-stock

transaction, which was declined by DHT's Board.

* In February, Frontline presented an improved and final offer of 0.80

Frontline shares per DHT share, which was declined by DHT's Board.

* Agreed with Ship Finance to terminate the long term charter for the 1998

built VLCC Front Century upon the sale and delivery of the vessel to a third

party.

* Acquired two VLCC resales delivering Sep and Oct 2017 from DSME, Korea at

$77.5 million net per vessel

Robert Hvide Macleod, Chief Executive Officer of Frontline Management AS

commented:

"The improvement in crude tanker rates in the fourth quarter was attributable to

seasonality as we approached winter in the Northern Hemisphere as well as a

strong increase in OPEC volumes ahead of the implementation of production cuts.

We remain of the opinion that 2017 will see pressure on freight rates as further

newbuildings are delivered. As DHT's largest shareholder we are surprised that

DHT's Board has declined our repeated attempts to discuss a business combination

that we believe is clearly in the best interest of all shareholders. We

continuously evaluate various ways to expand our fleet and are pleased to have

acquired two VLCC resales at historically low prices without adding to the size

of the global fleet. We continue to maintain our leading position in the tanker

market, supported by our very low cash breakeven rates, large commercial scale

and consistent access to capital. These are clear differentiators that the

market has consistently ascribed value to."

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

"Frontline's newbuilding program as of December 31, 2016 is fully financed. The

Company has already initiated dialogues with banks to finance our two newly

acquired resale VLCCs and are confident that we will be able to secure financing

at attractive terms."

The average daily time charter equivalents ("TCE") earned by Frontline in the

fourth quarter and year ended December 31, 2016 are shown below:

--------------------------------------------------------------------------------

Estimated

($ per Spot and time charter Spot Spot %   average

day) Guidance covered daily BE

rates

+------+----------------------+--------------------+----------------+-----------

|  |Q4 2016 Q3 2016 YTD |Q4 Q3 YTD |Q1 2017 |  2017

| | 2016 |2016 2016 2016 | |

+------+----------------------+--------------------+----------------+-----------

VLCC  | 32 900 27 900 43 200|32 200 26 900 43 100|38 000 74 % |  22 300

| | | |

SMAX | 23 500 21 200 26 400|21 700 19 200 24 800|23 000 71 % |  17 300

| | | |

LR2 | 22 700 23 800 23 800|18 800 20 600 20 800|19 000 60 % |  15 500

-------+----------------------+--------------------+----------------+-----------

Questions should be directed to:

Robert Hvide Macleod: Chief Executive Officer, Frontline Management AS

+47 23 11 40 84

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

+47 23 11 40 76

Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking

statements. Forward-looking statements include statements concerning plans,

objectives, goals, strategies, future events or performance, and underlying

assumptions and other statements, which are other than statements of historical

facts. Words, such as, but not limited to "believe," "anticipate," "intends,"

"estimate," "forecast," "project," "plan," "potential," "may," "should,"

"expect," "pending" and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various

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

Although Frontline believes that these assumptions were reasonable when made,

because these assumptions are inherently subject to significant uncertainties

and contingencies which are difficult or impossible to predict and are beyond

the control of Frontline, Frontline cannot assure you that they will achieve or

accomplish these expectations, beliefs or projections. The information set forth

herein speaks only as of the date hereof, and Frontline disclaims any intention

or obligation to update any forward-looking statements as a result of

developments occurring after the date of this communication.

This information is subject to the disclosure requirements pursuant to section

5 -12 of the Norwegian Securities Trading Act.