Frontline Plc — Earnings Release 2019

Nov 27, 2019

FRO - Third Quarter and Nine Months 2019 Results

FRO - Third Quarter and Nine Months 2019 Results

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

for the three and nine months ended September 30, 2019:

Highlights

* Reports a net loss of $10.0 million, or $0.06 per share, for the third

quarter of 2019.

* Reported spot average daily time charter equivalent ("TCE") for VLCCs,

Suezmax tankers and LR2 tankers in the third quarter were $22,900, $16,200

and $15,900, respectively.

* For the fourth quarter of 2019, we estimate spot TCE of $64,800 contracted

for 78% of vessel days for VLCCs, $49,400 contracted for 71% of vessel days

for Suezmax tankers and $29,900 contracted for 74% of vessel days for LR2s.

The estimated spot TCEs are provided on a load-to-discharge basis. In line

with previous quarters, we expect the spot TCEs for the full quarter to be

lower than the TCEs currently contracted, primarily due to the impact of

ballast days at the end of the quarter.

* In October 2019, the Company announced that it had extended its senior

unsecured revolving credit facility of up to $275.0 million with an

affiliate of the Company's shareholder, Hemen Holding Ltd. to May 2021.

* In November 2019, the Company secured a commitment from ICBC Financial

Leasing Co., Ltd ("ICBCL") for a sale-and-leaseback agreement in an amount

of up to $544.0 million, which is subject to final documentation.

* Declared a cash dividend of $0.10 per share for the third quarter of 2019.

Robert Hvide Macleod, Chief Executive Officer of Frontline Management AS

commented:

"We believe that tanker market fundamentals look encouraging and we have entered

a period of substantially stronger vessel earnings. Our strategy has focused on

increasing our spot exposure throughout the year and we believe this will be

reflected in our results for the fourth quarter. While the brief spike in tanker

rates made news headlines, it would not have been possible without a

fundamentally tighter tanker market. We expect to see a dynamic and volatile

market environment in the coming quarters and we will seek to opportunistically

secure charter coverage if market strength persists." ?

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

"We are very pleased to have secured the financing commitment from ICBCL on

highly attractive terms, which marks an important transaction between ICBCL and

Frontline. Through this transaction we extend our capital sources at a very

attractive capital cost, maintain our industry leading cash break-even rates and

maximise potential cash flow per share after debt service."

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

quarter ended September 30, 2019, the prior quarters and in the year ended

December 31, 2018 are shown below, along with spot estimates for the fourth

quarter of 2019 and the estimated average daily cash break-even ("BE") rates for

the remainder of 2019:

Average daily time charter equivalents ("TCEs")

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

Estimated

($ per Spot average daily

day)   ? Spot estimates % covered cash BE rates

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

|  Q3 2019 Q2 2019 Q1 2019 2018 Q4 2019 | 2019 |

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

|VLCC 22,900 25,600 35,700 18,300 64,800 78% | 23,400 |

| | |

|SMAX 16,200 16,200 28,200 17,300 49,400 71% | 21,100 |

| | |

|LR2 15,900 18,100 24,000 14,900 29,900 74% | 16,100 |

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

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 hire, time charter hire and net

general and administrative expenses.

Spot estimates are provided on a load-to-discharge basis. The rates quoted are

for days currently contracted. The actual rates to be earned in the fourth

quarter of 2019 will therefore depend on the number of additional days that we

can contract, and more importantly the number of additional days that each

vessel is laden. Therefore, a high number of ballast days at the end of the

quarter will limit the amount of additional revenues to be booked on a load to

discharge basis. Furthermore, when a vessel remains uncontracted at the end of

the quarter, the Company will recognize any costs during the uncontracted days

up until the period end, whereas if a vessel is contracted, then certain costs

can be deferred and recognized over the load-to-discharge period.

For example, on August 27, 2019 the Company disclosed that spot TCE of $28,000

per day had been contracted for 83% of vessel days for our VLCCs. The number of

ballast days at the end of the third quarter was higher than the uncontracted

days on August 27, 2019 and no additional revenues were booked. Furthermore, due

to the number of uncontracted days at the end of the period, costs have been

recognized for those days. This resulted in a lower TCE per day by the end of

the third quarter.

The load-to-discharge basis of accounting results in revenues being recognized

over fewer days, but at a higher rate for those days. Over the life of a voyage

there is no difference in the total revenues and costs to be recognized.

When expressing TCE per day for the third quarter of 2019, the Company uses the

total available days for the quarter and not just the number of days the vessel

is laden.

The Board of Directors

Frontline Ltd.

Hamilton, Bermuda

November 26, 2019

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

document, 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, dry docking 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 no guarantee 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.