Frontline Plc — Earnings Release 2018

Nov 16, 2018

FRO - Third Quarter and Nine Months 2018 Results

FRO - Third Quarter and Nine Months 2018 Results

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

for the three and nine months ended September 30, 2018:

Highlights

* Net income attributable to the Company of $2.2 million, or $0.01 per share,

for the third quarter of 2018.

* Net loss attributable to the Company adjusted for certain non-cash items of

$8.4 million, or $0.05 per share, for the third quarter of 2018.

* Spot TCE of $22,000 for VLCCs less than 15 years of age in the third

quarter.

* Spot TCE of $35,000 booked for 74% of vessel days for VLCCs less than 15

years of age in the fourth quarter.

* In November 2018, ordered exhaust gas cleaning systems ("EGCS") for a

further 12 vessels from Feen Marine Scrubbers Inc. ("FMSI"), increasing

commitment to installing EGCS on 20 vessels.

* In November 2018, extended the terms of its senior unsecured loan facility

of up to $275.0 million facility with an affiliate of Hemen Holding Ltd. by

12 months to November 2020.

Robert Hvide Macleod, Chief Executive Officer of Frontline Management AS

commented:

"Tanker markets are beginning to rebalance following 18 months of extremely

challenging conditions and we are optimistic that the market has now exited the

cycle trough. Oil inventory draws, fleet growth and production cuts have been

against us, but these important factors are now turning in our favor. The most

important factor, oil demand, remains strong.

Frontline has actively positioned its fleet to participate in the market

upturn.  We have a large fleet of modern and fuel-efficient vessels, with an

average age of 4.1 years and our cash breakeven levels are among the most

competitive in the industry. We expects that our positioning for IMO 2020, with

our equity investment in FMSI and the planned installation of scrubbers on a

number of our vessels, will result in a significant increase in cash generation

should our market view unfold."

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

quarter ended September 30, 2018, the prior quarters and in the year ended

December 31, 2017 are shown below, along with spot estimates for the fourth

quarter of 2018 and the estimated average daily cash break-even ("BE") rates for

the remainder of 2018:

Average daily time charter equivalents ("TCEs")

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

Estimated

average

($ per Spot % daily cash

day) Spot estimates covered BE rates

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

|  YTD 2018 Q3 2018 Q2 2018 Q1 2018 2017 Q4 2018 | 2018 |

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

|VLCC 15,400 19,900 11,700 14,900 22,400 34,000 77% | 22,400 |

| | |

|SMAX 14,300 13,500 14,100 15,400 17,300 24,000 65% | 18,600 |

| | |

|LR2 13,600 14,300 11,700 14,800 14,400 17,000 59% | 16,400 |

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

The estimated average daily cash break-even rates are the daily TCE rates the

vessels must earn in order to cover operating expenses including dry docks,

repayments of loans, interest on loans, bareboat/tc hire and general and

administrative expenses.

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 report may constitute forward-looking statements. The

Private Securities Litigation Reform Act of 1995 provides safe harbor

protections for forward-looking statements, which 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.

Frontline Ltd. and its subsidiaries, or the Company, desires to take advantage

of the safe harbor provisions of the Private Securities Litigation Reform Act of

1995 and is including this cautionary statement in connection with this safe

harbor legislation. This report and any other written or oral statements made by

us or on our behalf may include forward-looking statements, which reflect our

current views with respect to future events and financial performance, and are

not intended to give any assurance as to future results. When used in this

documents, the words "believe," "anticipate," "intend," "estimate," "forecast,"

"project," "plan," "potential," "will," "may," "should," "expect" and similar

expressions, terms or phrases may identify forward-looking statements.

The forward-looking statements in this report are based upon various

assumptions, including without limitation, management's examination of

historical operating trends, data contained in our records and data available

from third parties. Although we believe 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 our control, we cannot assure you that we will achieve or accomplish

these expectations, beliefs or projections. We undertake no obligation to update

any forward-looking statements, whether as a result of new information, future

events or otherwise.

In addition to these important factors and matters discussed elsewhere herein,

important factors that, in our view, could cause actual results to differ

materially from those discussed in the forward-looking statements include the

strength of world economies, fluctuations in currencies and interest rates,

general market conditions, including fluctuations in charter hire rates and

vessel values, changes in the supply and demand for vessels comparable to ours,

changes in world wide oil production and consumption and storage, changes in the

Company's operating expenses, including bunker prices, drydocking and insurance

costs, the market for the Company's vessels, availability of financing and

refinancing, our ability to obtain financing and comply with the restrictions

and other covenants in our financing arrangements, availability of skilled

workers and the related labor costs, compliance with governmental, tax,

environmental and safety regulation, any non-compliance with the U.S. Foreign

Corrupt Practices Act of 1977 (FCPA) or other applicable regulations relating to

bribery, general economic conditions and conditions in the oil industry, effects

of new products and new technology in our industry, the failure of counter

parties to fully perform their contracts with us, our dependence on key

personnel, adequacy of insurance coverage, our ability to obtain indemnities

from customers, changes in laws, treaties or regulations, the volatility of the

price of our ordinary shares; our incorporation under the laws of Bermuda and

the different rights to relief that may be available compared to other

countries, including the United States, 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, political

events or acts by terrorists, and other important factors described from time to

time in the reports filed by the Company with the Securities and Exchange

Commission or Commission.

We caution readers of this report not to place undue reliance on these forward-

looking statements, which speak only as of their dates. These forward looking

statements are not guarantees of our future performance, and actual results and

future developments may vary materially from those projected in the forward

looking statements.

This information is subject to the disclosure requirements pursuant to section

5 -12 of the Norwegian Securities Trading Act.