Frontline Plc — Investor Presentation 2014

May 27, 2014

Q1 2014 Results

Forward looking statements

MATTERS DISCUSSED IN THIS DOCUMENT MAY CONSTITUTE FORWARD-LOOKING STATEMENTS. THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 PROVIDES SAFE HARBOR PROTECTIONS FOR FORWARD-LOOKING STATEMENTS IN ORDER TO ENCOURAGE COMPANIES TO PROVIDE PROSPECTIVE INFORMATION ABOUT THEIR BUSINESS. 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.

FRONTLINE 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. THE WORDS "BELIEVE," "ANTICIPATE," "INTENDS," "ESTIMATE," "FORECAST," "PROJECT," "PLAN," "POTENTIAL," "WILL," "MAY," "SHOULD," "EXPECT" "PENDING" AND SIMILAR EXPRESSIONS IDENTIFY FORWARD-LOOKING STATEMENTS.

THE FORWARD-LOOKING STATEMENTS IN THIS DOCUMENT ARE BASED UPON VARIOUS ASSUMPTIONS, MANY OF WHICH ARE BASED, IN TURN, UPON FURTHER ASSUMPTIONS, INCLUDING WITHOUT LIMITATION, MANAGEMENT'S EXAMINATION OF HISTORICAL OPERATING TRENDS, DATA CONTAINED IN FRONTLINE'S RECORDS AND OTHER DATA AVAILABLE FROM THIRD PARTIES. 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 FRONTLINE'S CONTROL, YOU CANNOT BE ASSURED THAT FRONTLINE WILL ACHIEVE OR ACCOMPLISH THESE EXPECTATIONS, BELIEFS OR PROJECTIONS. FRONTLINE UNDERTAKES NO DUTY TO UPDATE ANY FORWARD-LOOKING STATEMENT TO CONFORM THE STATEMENT TO ACTUAL RESULTS OR CHANGES IN EXPECTATIONS.

IMPORTANT FACTORS THAT, IN FRONTLINE'S VIEW, COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE DISCUSSED IN THE FORWARD-LOOKING STATEMENTS INCLUDE, WITHOUT LIMITATION: THE STRENGTH OF WORLD ECONOMIES AND CURRENCIES, GENERAL MARKET CONDITIONS, INCLUDING FLUCTUATIONS IN CHARTERHIRE RATES AND VESSEL VALUES, CHANGES IN DEMAND IN THE TANKER MARKET, INCLUDING BUT NOT LIMITED TO CHANGES IN OPEC'S PETROLEUM PRODUCTION LEVELS AND WORLD WIDE OIL CONSUMPTION AND STORAGE, CHANGES IN FRONTLINE'S OPERATING EXPENSES, INCLUDING BUNKER PRICES, DRYDOCKING AND INSURANCE COSTS, THE MARKET FOR FRONTLINE'S VESSELS, AVAILABILITY OF FINANCING AND REFINANCING, ABILITY TO COMPLY WITH COVENANTS IN SUCH FINANCING ARRANGEMENTS, FAILURE OF COUNTERPARTIES TO FULLY PERFORM THEIR CONTRACTS WITH US, 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 OR POLITICAL EVENTS, VESSEL BREAKDOWNS, INSTANCES OF OFF-HIRE AND OTHER IMPORTANT FACTORS. FOR A MORE COMPLETE DISCUSSION OF THESE AND OTHER RISKS AND UNCERTAINTIES ASSOCIATED WITH FRONTLINE'S BUSINESS, PLEASE REFER TO FRONTLINE'S FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION, INCLUDING, BUT NOT LIMITED TO, ITS ANNUAL REPORT ON FORM 20-F.

THIS PRESENTATION IS NOT AN OFFER TO PURCHASE OR SELL, OR A SOLICITATION OF AN OFFER TO PURCHASE OR SELL, ANY SECURITIES OF FRONTLINE.

Agenda

• First Quarter 2014 Highlights and Transactions
• Financial Review
• Newbuildings
• Market Update
• Outlook
• Q & A

First Quarter 2014

Highlights and Transactions

• Swap of the two Suezmax newbuilding contracts at Rongsheng with similar Suezmax tankers at a lower price.
• The first vessel was delivered on May 19, 2014.
• The second vessel has estimated delivery in September 2014.
• The Company issued 8,829,063 new ordinary shares in the first quarter and 1,635,589 new ordinary shares in April 2014 under the ATM program.

Financial Highlights

Q1 - 2014 results

• Net loss : \$12.1m
• Net loss per share : \$0.13
• Loss on sale of MT "Ulysses" : \$15.7m
• Net income ex sales : \$3.6m

No dividend declared in Q1-2014

Share price NYSE May 23, 2014: \$2.86

– Market cap: \$277.4m

Income Statement

CONDENSED CONSOLIDATED INCOME STATEMENTS	2014	2013	2013
(in thousands of \$)	Jan-Mar	Jan-Mar	Jan-Dec
Total operating revenues	169,998	125,903	517,190
(Loss) gain on sale of assets and amortization of deferred gains	(15,727)	9,211	23,558
Voyage expenses and commission	80,701	70,150	299,741
Ship operating expenses	23,052	26,877	109,872
Contingent rental expense (income)	13,023	(302)	(7,761)
Charter hire expenses	-	3,973	4,176
Administrative expenses	9,070	8,431	31,628
Impairment loss on vessels	-	-	103,724
Depreciation	22,846	26,112	99,802
Total operating expenses	148,692	135,241	641,182
Net operating income (loss)	5,579	(127)	(100,434)
Interest income	7	33	83
Interest expense	(21,565)	(22,618)	(90,718)
Share of results from associated companies	562	4,681	13,539
Foreign currency exchange (loss) gain	(31)	(55)	(92)
Mark to market loss on derivatives	-	(585)	(585)
Debt conversion expense	-	-	(12,654)
Other non-operating items	306	282	1,267
Net loss before tax and noncontrolling interest	(15,142)	(18,389)	(189,594)
Taxes	(70)	-97	(284)
Net loss from continuing operations	(15,212)	(18,486)	(189,878)
Net loss from discontinued operations	-	(549)	(1,204)
Net loss	(15,212)	(19,035)	(191,082)
Net loss attributable to noncontrolling interest	3,127	280	2,573
Net loss attributable to Frontline Ltd.	(12,085)	(18,755)	(188,509)
Basic loss per share attributable to Frontline Ltd.	\$(0.13)	\$(0.24)	\$(2.36)

Income on time charter basis

	2014			2013
\$/day	Q1	FY	Q4	Q3	Q2	Q1
VLCC Spot DH	32 500	15 400	21 600	13 900	11 200	14 600
VLCC w hole fleet	32 700	17 400	22 400	16 100	14 100	17 000
Suezmax Spot DH	27 700	13 400	12 900	12 400	13 800	14 500
OBO	-	13 300	-	-	-	13 300

Ship operating expenses/Off-hire

Balance Sheet

Balance sheet
(in \$ million)	2014	2013	2013
	Mar 31	Mar 31	Dec 31
Cash	111	109	54
Restricted cash	75	71	68
Other Current assets	145	126	138
Long term assets:
Vessels	906	1 147	970
Newbuildings	30	28	30
Other long term assets	107	103	108
Total assets	1 374	1 584	1 368
Current liabilities	174	124	131
Long term liabilities	1 193	1 347	1 255
Noncontrolling interest	6	11	9
Frontline Ltd. stockholders' equity	1	101	-27
Total liabilities and stockholders' equity	1 374	1 584	1 368

Cash Cost Breakeven

Comments to B/E rates:

• Included in cash B/E rates are: BB hire, opex , interest and admin. expenses
• B/E rates exclude capex. and ITCL vessels

Newbuilding

Newbuilding Overview

• Total newbuilding program as of March 31, 2014:
• Two Suezmax tankers
• Remaining installments to be paid approx. \$87.9m
• Revised newbuilding program agreed in April 2014:
• Agreement with Rongsheng to swap two Suezmax newbuilding contracts with two similar Suezmax tankers at a lower contract price.
• The first vessel was delivered on May 19, 2014.
• The second vessel is expected to be delivered in September 2014
• Remaining commitment under the new agreement is approximately \$41.5m

Corporate Overview

Frontline Fleet

Incl. vessels on commercial management & ITCL, excl. newbuildings

As per 26 May 2014 DH: Double Hull

Earnings & Market Factors

Q1 – Average Market earnings / Marex

• VLCC (TD3) : \$ 27,500/day (Q4-13: \$34,000/day)
• Suezmax (TD5) : \$27,500/day (Q4-13: 24,000/day)

The Market:

• According to IEA global oil demand decreased by 1.1 mb/d in Q1 compared to Q4.
• Total VLCC and Suezmax fleet remained largely unchanged during the quarter
• Five VLCC newbuilding and Three Suezmax were delivered during the quarter
• One VLCC and no Suezmaxes were removed during the quarter
• Higher volatility and tighter supply/demand ratio giving more healthy earnings at the beginning of the year
• Both Europe, Caribbean, West Africa and Arabian gulf were active during the start of the year but has since slowed down
• NOW Suezmax and VLCC max rates at OPEX levels

VLCC Fleet

Current Fleet	627
DH Fleet	626
SH (DS, DB, SS) Fleet	1

Current Fleet	627	Orderbook	94
DH Fleet	626	Delivered 2013	32
SH (DS, DB, SS) Fleet	1	Estimated deliveries 2014	21

Current fleet & Orderbook

Fleet Delivery Schedule

Suezmax Fleet

Source: Fearnleys April 2014

Values and Rates

NEWBUILDING

TC MARKET

Outlook

General

• Higher volatility signaling a more balanced supply/demand scenario than recent years
• Increased VLCC Newbuiliding activity
• Limited increase in Suezmax newbuilding for now
• More shipyard-space opening up for 2016
• Newbuilding prices likely to decline

Frontline

• Fleet at core levels
• Six scheduled drydockings for remaining of 2014
• Proactively rearranging Newbuilding program
• One Suezmax Newbuilding delivered
• Looking into opportunities to restructure the balance sheet and improve the Company's financial position