Frontline Plc — Earnings Release 2022

Aug 25, 2022

FRO - Second Quarter and Six Months 2022 Results

FRO - Second Quarter and Six Months 2022 Results

FRONTLINE LTD. REPORTS RESULTS FOR THE SECOND QUARTER ENDED JUNE 30, 2022

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

for the three and six months ended June 30, 2022:

Highlights

* Net income of $47.1 million, or $0.23 per basic and diluted share for the

second quarter of 2022.

* Adjusted net income of $42.5 million, or $0.21 per basic and diluted share

for the second quarter of 2022.

* Declared a cash dividend of $0.15 per share for the second quarter of 2022.

* Reported total operating revenues of $300.4 million for the second quarter

of 2022.

* Reported spot TCEs for VLCCs, Suezmax tankers and LR2 tankers in the second

quarter of 2022 were $16,400, $26,500 and $38,600 per day, respectively.

* For the third quarter of 2022, we estimate spot TCE on a load-to-discharge

basis of $28,100 contracted for 73% of vessel days for VLCCs, $45,000

contracted for 73% of vessel days for Suezmax tankers and $46,200 contracted

for 62% of vessel days for LR2 tankers.

* Announced the signing of a definitive combination agreement for a stock-for-

stock combination between Frontline and Euronav NV ("Euronav") (NYSE &

Euronext: EURN) to create a leading global independent oil tanker operator

which on a combined basis would own and operate 68 VLCCs and 56 Suezmax

tankers, and 20 LR2/Aframax tankers.

* Took delivery of the VLCC newbuildings, Front Alta and Front Tweed, from

Hyundai Heavy Industries ("HHI") in April and June 2022, respectively.

* Entered into two senior secured term loan facilities in April and July 2022

for a total amount of up to $356.4 million at attractive terms to refinance

two existing term loan facilities maturing in the first quarter of 2023.

Lars H. Barstad, Chief Executive Officer of Frontline Management AS, commented:

"Frontline's fleet of LR2 tankers took center stage in the second quarter of

2022 during which period we achieved the highest quarterly TCE we have recorded

on this vessel class. Sanctions on Russian oil and other products disrupted

trade lanes for refined products globally, causing both refinery margins and

freight rates to rise. Crude oil transport has also been affected, and Suezmax

tankers have seen increased utilization and freight rates, throughout the second

quarter.

Frontline is proud to show solid earnings in the second quarter and to be able

to distribute dividends. We have over the last several quarters pointed to what

we believe will be a cyclical up-turn for tankers, and this view has only been

further cemented during the first half of the year. Supply and demand for oil

and product transportation has gradually been tightening as the world recovers

from the COVID-19 pandemic, and a pivotal point seems to have been found. With

the lowest orderbook as a percentage of the fleet seen in decades, and oil

supply and demand normalizing, we believe this bodes well for the years to come.

Frontline announced on the 11(th) of July its intention for a stock-for-stock

combination with Euronav, with full support from the respective Board of

Directors, and we are moving diligently forward to what ultimately will create

an unparalleled service offering to our customers and the largest listed tanker

owner in the world."

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

"In April and July 2022, we entered into two senior secured term loan facilities

for a total amount of up to $356.4 million to refinance two existing term loan

facilities with total balloon payments of $324.6 million maturing in the first

quarter of 2023. The refinancing will reduce our borrowing costs and what we

believe to be industry leading cash break even rates and maximize potential cash

flow per share after debt service costs. We expect to refinance one further

existing term loan facility with total balloon payments of $33.7 million due in

the first quarter of 2023 prior to maturity."

Average daily time charter equivalents ("TCEs")(1)

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

| | | | | Estimated |

| | | | | average |

| | | | |daily cash |

|($ per| | Spot TCE | | breakeven |

| day) | Spot TCE | estimates |% Covered| rates |

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

|  | 2022 |Q2 2022|Q1 2022|Q4 2021| 2021 | Q3 2022 | 2022 |

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

|VLCC |16,000|16,400 |15,700 |16,500 |15,300| 28,100 | 73 % | 24,900 |

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

|SMAX |21,600|26,500 |16,900 |14,200 |12,000| 45,000 | 73 % | 20,000 |

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

|LR2 |28,600|38,600 |19,000 |13,900 |11,800| 46,200 | 62 % | 17,200 |

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

The estimated average daily cash breakeven rates are the daily TCE rates our

vessels must earn to cover operating expenses including dry docks, repayments of

loans, interest on loans, bareboat hire, time charter hire and net general and

administrative expenses for the remainder of the year.

Spot estimates are provided on a load-to-discharge basis, whereby the Company

recognizes revenues over time ratably from commencement of cargo loading until

completion of discharge of cargo. The rates reported are for all contracted days

up until the last contracted discharge of cargo for each vessel in the quarter.

The actual rates to be earned in the third quarter of 2022 will 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. Ballast days are days when a

vessel is sailing without cargo and therefore, we are unable to recognize

revenues on such days. Furthermore, when a vessel remains uncontracted at the

end of the quarter, the Company will recognize certain costs during the

uncontracted days up until the end of the period, whereas if a vessel is

contracted, then certain costs can be deferred and recognized over the load-to-

discharge period.

The recognition of revenues on a load-to-discharge basis 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 as compared to a discharge-to-discharge basis.

When expressing TCE per day the Company uses the total available days, net of

off hire days and not just the number of days the vessel is laden.

The Board of Directors

Frontline Ltd.

Hamilton, Bermuda

August 24, 2022

Ola Lorentzon - Chairman and Director

John Fredriksen - Director

Ole B. Hjertaker - Director

James O'Shaughnessy - Director

Jens Martin Jensen - Director

Steen Jakobsen - Director

Questions should be directed to:

Lars H. Barstad: Chief Executive Officer, Frontline Management AS

+47 23 11 40 37

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

ability of Frontline and Euronav to successfully complete the proposed

combination on anticipated terms and timing, including, among other things,

obtaining required shareholder and regulatory approvals, unforeseen liabilities,

future capital expenditures, revenues, expenses, earnings, synergies, economic

performance, indebtedness, financial condition, losses, future prospects,

business and management strategies, expansion and growth of the combined group's

operations and other important conditions to the completion of the acquisition,

risks relating to the integration of operations of Frontline and Euronav and the

possibility that the anticipated synergies and other benefits of the proposed

combination will not be realized or will not be realized within the expected

timeframe, the outcome of any legal proceedings related to the proposed

combination, the failure of counterparties to fully perform their contracts with

Frontline or Euronav, 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 worldwide 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, the impact of increasing scrutiny and changing

expectations from investors, lenders and other market participants with respect

to our ESG policies, 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,

environmental factors, political events, public health threats, international

hostilities including the ongoing developments in the Ukraine region, acts by

terrorists or acts of piracy on ocean-going vessels, the length and severity of

epidemics and pandemics, including the ongoing global outbreak of the novel

coronavirus ("Covid-19"), and their impacts on the demand for seaborne

transportation of petroleum products, the impact of increasing scrutiny and

changing expectations from investors, lenders and other market participants with

respect to our Environmental, Social and Governance policies, the impact of port

or canal congestion and other important factors described from time to time in

the reports filed by the Company with 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 the Norwegian Securities Trading Act.

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(1) This press release describes Time Charter Equivalent earnings and related

per day amounts, which are not measures prepared in accordance with US GAAP

("non-GAAP"). See Appendix 1 for a full description of the measures and

reconciliation to the nearest GAAP measure.