Frontline Plc — Earnings Release 2018

Aug 22, 2018

FRO - Second Quarter and Six Months 2018 Results

FRO - Second Quarter and Six Months 2018 Results

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

for the three and six months ended June 30, 2018:

Highlights

* Net loss attributable to the Company for the second quarter of 2018 of $22.9

million, or $0.13 per share which, when adjusted for certain non-cash items,

was $27.7 million, or $0.16 per share.

* Spot TCE of $17,000 for ECO VLCCs and $13,200 for VLCCs less than 15 years

in the second quarter.

* Spot TCE of $21,700 booked for 82% of vessel days on VLCCs less than 15

years in the third quarter.

* Terminated three long-term charters with Ship Finance.

* Positioning for the "IMO 2020" regulations by acquiring 20% in Feen Marine

Scrubbers Inc. ("FMSI"), a leading manufacturer of exhaust gas scrubbers

("EGCS"), and securing the capacity to source a large volume of EGCS for the

Company.

Robert Hvide Macleod, Chief Executive Officer of Frontline Management AS

commented:

"Despite the current weak rate environment, we believe cyclical changes are

underway and as a result we are more optimistic on tanker rates.  The factors

supporting our expectation include continued scrapping ahead of 2020 offsetting

new deliveries and increased demand for seaborne trade as a result of expected

growth in both US exports and OPEC production of crude oil.  Additionally, crude

oil demand remains strong, and the end of the inventory draw cycle seems

increasingly inevitable. We are actively positioning for IMO 2020 and we are

pleased that we have been able to secure ownership in a scrubber producer and

capacity to buy a large volume of scrubbers at a very competitive price. We will

continue to look for the right investment opportunities to further position the

Company for the expected recovery."

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

quarter ended June 30, 2018, the prior quarter and in the year ended December

31, 2017 are shown below, along with spot estimates for the third 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 BE

day) Spot estimates % covered rates

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

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

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

|VLCC 13,300 11,700 14,900 22,400 20,000 78% | 22,500 |

| | |

|SMAX 14,800 14,100 15,400 17,300 13,900 64% | 18,500 |

| | |

|LR2 13,200 11,700 14,800 14,400 15,500 57% | 16,200 |

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

The full report can be found in the link below.

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.