Frontline Plc · NYSE:FRO
Frontline — Q1 2024 Earnings Presentation
15 slides from Frontline's earnings presentation, May 30, 2024
Slide 1: First Quarter Presentation May 2024
First Quarter Presentation May 2024
Slide 2: Forward Looking Statements
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
Slide 3: Highlights
Highlights Reported earnings basis load to discharge Q1 2024 Q2 2024 est. % done VLCC $48,100 $60,400 78% Suezmax $45,800 $46,400 73% $54,300 $64,700 72% LR2 / Aframax • Profit of $180.8 million, or $0.81 per basic and diluted share for the first quarter of 2024 • Adjusted profit of $137.9 million,
Slide 4: Profit Statement – Highlights
Profit Statement – Highlights 2024 2023 2023 (in thousands of $ except per share data) Jan - Mar Oct - Dec Jan - Dec Notes • Adjusted Profit in the first quarter increased by $35.8 million compared Total operating revenues (net of voyage expenses)* 371 209 256 897 1 183 589 with the fourth quarter,
Slide 5: Balance Sheet - Highlights
Balance Sheet - Highlights 2024 2023 (in millions $) Mar 31 Dec 31 Assets • Balance sheet movements Cash 297 308 are related to taking delivery of Other current assets 542 420 the remaining 13 of the 24 VLCCs acquired from Euronav Non-current assets last year Vessels and newbuildings 5 622 4 635 • S
Slide 6: Fleet Composition and Cash breakeven / Opex
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 $27.100 fleet average, including dry dock ~ 6 Years 99% 56% costs for five VLCCs and two SMAX tankers in 2024 Average age ECO vessels
Slide 7: Cash Generation
Cash Generation ~30,000 earnings days annually 10% increase from current spot market will increase the potential cash $5,86 generation with ~ 19% 1 200 $5,15 5,00 $4,45 1 000 $3,75 4,00 800 Free Cash Flow ($m) FCF per share ($) $1.304b 3,00 600 $1.148b $991 2,00 400 $835m 1,00 200 0 0,00 VLCC 55.9k
Slide 8: Current Market narrative
Current Market narrative • Israel/Hamas/Iran - growing political risk 55 000 Long Term Time Charter Markets 50 000 • Increased sanctions evasion scrutiny from US and EU 45 000 • Global Oil Demand to reach ATH in Jun –> 103.76 MBD 40 000 USD / Day 35 000 • Period markets on the move for long term com
Slide 9: Non-Opec Supply growth Continues
Non-Opec Supply growth Continues Americas Oil Exports -Tonne Miles Americas VLCC Exports 1 100 000 3 000 Crude/Co 3M-MA 1 000 000 2 500 900 000 Million Tonne Miles 2 000 800 000 Kbpd 1 500 700 000 1 000 600 000 500 500 000 400 000 0 Mar-21 Mar-22 Mar-23 Mar-24 May-21 May-22 May-23 May-24 Jan-21 Jan-
Slide 10: Orderbooks
Orderbooks 80 80 VLCC VLCC May 24: Fleet 15 + % above 15 20 + % above 20 Orderbook % of Fleet 60 60 40 40 VLCC 885 297 33.56 % 133 15.03 % 41 4.6 % 65 68 53 58 53 58 65 49 49 47 49 40 20 20 38 36 38 27 36 36 2936 39 39 37 35 42 16 19 29 31 31 19 28 31 31 23 21 27 19 28 22 1 5 16 8 vessels of vessels
Slide 11: A Structural Supply Story
A Structural Supply Story • From 2024 onwards we hit a “wall” of replacement needs, based on Active Yards: South Korea China Japan World tonnage needing to be phased out between 20-25 years of age • Global Yard capacity is down 52% basis number of yards compared to 2011 24 275 64 519 2011 building p
Slide 12: Summary
Summary Fully delivered VLCC fleet sailing under Frontline flag • Sale of non-eco vessels completed, giving Frontline one of the most fuel-efficient fleets in the market • Finalized and inked expansion financing, completing our strategy of re-leveraging existing fleet • Security situation in Red Sea
Slide 13: Questions & Answers
Questions & Answers ie
Slide 14: www.frontlineplc.cy
I FRONTLINE M www.frontlineplc.cy
Slide 15: Non-GAAP measures reconciliation
Appendix 1 Non-GAAP measures reconciliation (in thousands of $ except per share) Q1 2024 FY 2023 Q4 2023 Total operating revenues net of voyage expenses and commission Total operating revenues 578,397 1,802,184 415,004 Voyage expenses and commission (207,188) (618,595) (158,107) Total operating reve