Frontline Plc — Investor Presentation 2024

Nov 27, 2024

Third Quarter Presentation November 2024

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," "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. THE INFORMATION SET FORTH HEREIN SPEAKS ONLY AS OF THE DATES SPECIFIED AND FRONTLINE UNDERTAKES NO DUTY TO UPDATE ANY FORWARD-LOOKING STATEMENT TO CONFORM THE STATEMENT TO ACTUAL RESULTS OR CHANGES IN EXPECTATIONS OR CIRCUMSTANCES.

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 OR A SOLICITATION OF ANY VOTE OR APPROVAL.

Reported earnings basis load to discharge

Q3 2024

	contracted
VLCC	\$39,600	\$44,300	77%
Suezmax	\$39,900	\$39,600	70%
LR2 / Aframax	\$36,000	\$34,800	60%

• Profit of \$60.5 million, or \$0.27 per basic and diluted share for the third quarter of 2024
• Adjusted profit of \$75.4 million, or \$0.34 per basic and diluted share for the third quarter of 2024

Q4 2024 spot TCE currently

% done

• Reported revenues of \$490.3 million for the third quarter of 2024

• Declared a cash dividend of \$0.34 per share for the third quarter of 2024

• Sold its oldest Suezmax tanker, built in 2010, for a net sales price of \$48.5 million and delivered the vessel to its new owner in October 2024. The transaction generated net cash proceeds of \$36.5 million after repayment of existing debt
• Fully repaid the shareholder loan with Hemen Holding Limited ("Hemen"), and the \$275.0 million senior unsecured revolving credit facility with an affiliate of Hemen for an aggregate amount of \$470.0 million
• Entered into a sale-and-leaseback agreement in an amount of up to \$512.1 million to refinance 10 Suezmax tankers. The refinancing is expected to generate net cash proceeds of approximately \$101.0 million in the fourth quarter of 2024

Profit Statement – Highlights

	2024	2024	2023
(in thousands of \$ per share data) except	- Sep Jul	Apr - Jun	Jan - Dec
Total of	295 333	358 231	1 183 589
operating (net expenses)* revenues voyage
Other income	45	51 487	24 080
Ship operating expenses	(59 446)	(57 519)	(176 533)
Administrative expenses	(6 965)	(12 566)	(53 528)
EBITDA	226 794	340 562	1 040 832
EBITDA adj*	228 967	288 146	955 251
adj* Interest expense	(69 368)	(70 295)	(155 585)
Profit	60 457	187 574	656 414
Profit adj*	75 436	138 189	585 708
Basic and diluted earnings share per	0 27 ,	0 84 ,	2 95 ,
Basic and diluted earnings share adjusted per	0 34 ,	0 62 ,	2 63 ,
Dividend share per	0 34 ,	0 62 ,	2 17 ,

Notes

• The adjustments in the third quarter of 2024 consist of:
  • \$2.8 million loss on marketable securities
  • \$12.8 million unrealized loss on derivatives
  • \$0.6 million of dividends received.

Note: Diluted earnings per share is based on 222,623 and 222,623 weighted average shares (in thousands) outstanding for Q3 2024 and Q2 2024, respectively *See Appendix 1 for reconciliation to nearest comparable GAAP figures

4

Balance Sheet - Highlights

	2024	2024	2023
\$) (in millions	Sep 30	Jun 30	Dec 31
Assets
Cash	321	359	308
Other current assets	461	500	420
Non-current assets
Vessels and newbuildings	356 5	437 5	4 635
Goodwill	112	112	112
Prepaid consideration	-	-	349
Other non-current assets	33	42	58
Total assets	6 284	6 451	5 883
Liabilities and Equity
Short debt and portion of long debt term current term	402	455	262
Obligations under leases	1	1	1
Other payables current	144	166	146
Non-current liabilities
Long term debt	3 387	3 402	3 194
Obligations under leases	1	1	1
Other non-current payables	0	0	0
Non-controlling interest	(0)	(0)	(0)
Frontline plc stockholders' equity	2 348	2 426	2 278
Total liabilities and equity	6 284	6 451	5 883

• Strong liquidity of \$526 million in cash and cash equivalents, including undrawn amount of senior unsecured revolving credit facility, marketable securities and minimum cash requirements bank as per 30.09.24
• No meaningful debt maturities until 2027

Fleet Composition and Cash breakeven / Opex

One of the youngest and most energy-efficient fleets in the industry

Cash breakeven rates and Opex

Cash breakeven rates of \$26.300 fleet average for the next 12 months, including dry dock costs for five VLCCs and two Suezmax tankers

Q3-24 fleet average opex excl. drydock \$7.900

Cash Generation

• Despite current challenged spot market, Frontline generates decent positive cash flow.
• With ~30,000 earnings days annually, Frontline has a substantial upside potential.

Daily Overview - Average Earnings
Crude Tankers 2011 built	Last	Prev	Scrubber premium
VLCC	\$34,400	\$33,100	\$3,700
Suezmax	\$29,500	\$29,600	\$1,300
Aframax	\$25,100	\$26,500	\$1,200
Crude Tankers 2015 built
VLCC Eco	\$41,600	\$40,600	\$2,400
Suezmax Eco	\$32,600	\$32,800	\$1,000
Aframax Eco	\$28,000	\$29,400	5900
Product Tankers 2011 built
LR2	\$19,400	\$18,500	\$2,100
LR1	\$15,700	\$14,900	\$1,900
MR	\$24,100	\$22,600	5900
Product Tankers 2015 built
LR2 Eco	\$22,800	\$22,000	\$1,500
LR1 Eco	\$18,400	\$17,700	\$1,400
MR Eco	\$27,400	\$26,000	\$500

Current Market narrative

• Global oil supply increasing, demand growth muted and trading patterns changing
• Geopolitical risk linked to the Middle East continues, US policy important going forward
• ~ 17% of shipped oil is sanctioned, ~ 6% of Global Consumption
• Tariffs on Canada and Mexico may increase inefficiencies in oil flows
• Orderbook stopped growing for tankers and containers taking centre stage (again)
• World oil trade is serviced by the oldest fleet in more than two decades

BCTI TC1-TCE 75,000t Middle East Gulf to Japan

0 1 2 3 4 5 6 7 8 Mbpd

USD/Day

Jan-23

Jan-23

Feb-23

Mar-23

Apr-23 Apr-23 May-23 Jun-23 Jul-23

Jul-23

Aug-23 Sep-23 Oct-23 Oct-23

Nov-23

Dec-23

BDTI TD3C-TCE 270,000t Middle East Gulf to China

Jan-24

Jan-24

Feb-24

Mar-24

Apr-24 Apr-24 May-24 Jun-24 Jul-24

Jul-24

Aug-24 Sep-24 Oct-24 Oct-24

Key Oil Flows

• Overall Global demand growth muted year to date, across all regions
• Oil supply continues to rise, after inventory draws through 2024, we look to build in 2025
• Non-Opec production growth stays 'local' incurring shorter ton-miles
• Atlantic Basin to Far East (ex-Russia) flat year over year
• Sanctions-exposed oil market share of Asian demand reached ~25% in Q3-24
• Tanker market increasingly exposed to any changes in sanction policies

Orderbooks

Nov 2024	Fleet	15 +	% above 15	20 +	% above 20	Orderbook	% of Fleet
VLCC	883	295	33.4 %	131	14.8 %	67	7.6 %
Suezmax	611	236	38.6 %	108	17.7 %	95	15.5 %
LR2	445	129	29.0 %	31	7.0 %	167	37.5 %
Aframax	679	385	56.7 %	163	24.0 %	36	5.3 %
Total Fleet	2 618	1 045	39.9 %	433	16.5 %	365	13.9 %

of vessels

of vessels

Summary

Rolle-coaster bull market

• Modern fleet and strong balance sheet with upside retained
• Oil Supply expected to outpace demand in 2025
• Current trade flow developments challenging as sanctions "bite"
• Policy changes on Middle East with "Maximum pressure 2.0" as we proceed
• Orderbook growth has stopped, modern asset values remain firm
• World oil trade is now serviced by the oldest fleet in more than two decades

Questions & Answers

www.frontlineplc.cy

Appendix 1

Non-GAAP measures reconciliation

(in thousands of \$ except per share)	Q3 2024	Q2 2024	Q1 2024	FY 2023	Q4 2023
Total operating revenues net of voyage expenses and commission
Revenues	490,318	556,026	578,397	1,802,184	415,004
Voyage expenses and commission	(194,985)	(197,795)	(207,188)	(618,595)	(158,107)
Total operating revenues net of voyage expenses and commission	295,333	358,231	371,209	1,183,589	256,897
Adjusted profit
Profit	60,457	187,574	180,819	656,414	118,371
Add back:
Loss on marketable securities	2,817	—	1,273	23,968	—
Share of losses of associated company	—	2,134	—	1,690	—
Unrealized loss on derivatives (1)	12,806	3,385	—	20,950	13,211
Debt extinguishment losses	—	—	936	—	—
Less:
Unrealized gain on derivatives (1)	—	—	(815)	(6,075)	—
Gain on marketable securities	—	(2,088)	—	(46,957)	(29,074)
Share of results of associated company	(42)	—	(1,214)	(5,073)	(118)
Gain on sale of vessels	—	(51,487)	(42,742)	(21,960)	—
Gain on settlement of insurance and other claims	—	—	—	(397)	—
Debt extinguishment gains	—	(354)	—	—	—
Dividends received	(602)	(975)	(308)	(36,852)	(240)
Adjusted profit	75,436	138,189	137,949	585,708	102,150
Weighted average number of ordinary shares (basic and diluted)	222,623	222,623	222,623	222,623	222,623
Adjusted basic and diluted earnings per share \$	0.34 \$	0.62 \$	0.62 \$	2.63 \$	0.46
EBITDA
Profit	60,457	187,574	180,819	656,414	118,371
Add back:
Finance expense	82,439	73,380	71,376	171,336	55,419
Income tax expense	4,796	1,541	1,548	391	226
Depreciation	84,156	83,714	88,012	230,942	60,018
Less:
Finance income	(5,054)	(5,647)	(2,227)	(18,065)	(6,537)
Income tax benefit	—	—	—	(186)	—
EBITDA	226,794	340,562	339,528	1,040,832	227,497
Adjusted EBITDA
EBITDA	226,794	340,562	339,528	1,040,832	227,497
Add back:
Loss on marketable securities	2,817	—	1,273	23,968	—
Share of losses of associated company	—	2,134	—	1,690	—
Less:
Gain on marketable securities	—	(2,088)	—	(46,957)	(29,074)
Share of results of associated company	(42)	—	(1,214)	(5,073)	(118)
Gain on sale of vessels	—	(51,487)	(42,742)	(21,960)	—
Gain on settlement of insurance and other claims	—	—	—	(397)	—
Dividend received	(602)	(975)	(308)	(36,852)	(240)
Adjusted EBITDA	228,967	288,146	296,537	955,251	198,065

This presentation describes: Total operating revenues net of voyage expenses and commission ("Total operating revenues (net of voyage expenses)", Adjusted profit (loss) ("Profit (loss) adj") and related per share amounts, Adjusted Earnings Before Interest, Tax, Depreciation & Amortisation ("Adjusted EBITDA" or "EBITDA adj") and Adjusted Interest Expense ("Interest expense adj") (2), which are not measures prepared in accordance with IFRS ("non-GAAP").

We believe the non-GAAP financial measures provide investors with a means of analyzing and understanding the Company's ongoing operating performance.

The non-GAAP financial measures should not be considered in isolation from, as substitutes for, or superior to financial measures prepared in accordance with IFRS.

Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided.

(1) Adjusted profit excludes the unrealized gain (loss) on derivatives to give effect to the economic benefit/cost provided by our interest rate swap agreements. The components of the gain (loss) on derivatives are as follows:

(in thousands \$)	Q3 2024	Q2 2024	Q1 2024	FY 2023	Q4 2023
Unrealized gain (loss) on derivatives	(12,806)	(3,385)	815	(14,875)	(13,211)
Interest income on derivatives	6,267	6,254	6,164	22,914	6,283
Gain (loss) on derivatives	(6,539)	2,869	6,979	8,039	(6,928)

(2) A reconciliation of finance expense to adjusted interest expense is as follows:

Other financial expenses	(265)	(54)	(613)	(876)	(433)
Debt extinguishment gains (losses)	—	354	(936)	—	—
Unrealized gain (loss) on derivatives	(12,806)	(3,385)	815	(14,875)	(13,211)
Finance expense	82,439	73,380	71,376	171,336	55,419