Frontline Plc · NYSE:FRO
Frontline — Q1 2023 Earnings Presentation
14 slides from Frontline's earnings presentation, May 31, 2023
Slide 1: First Quarter Presentation May 2023
First Quarter Presentation May 2023
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 2023 Q2 2023 est. % done VLCC $52,500 $75,000 78% Suezmax $64,000 $65,000 71% $56,300 $65,700 63% LR2 / Aframax • Highest first quarter profit since 2008 of $199.6 million, or $0.90 per basic and diluted share • Adjusted profit of $193.3 millio
Slide 4: Profit Statement – Highlights
Profit Statement – Highlights 2023 2022 2022 (in thousands of $ except per share data) Jan - Mar Oct - Dec Jan - Dec Highest first quarter profit since 2008! Total operating revenues (net of voyage expenses)* 338 505 352 846 824 664 Other income 14 289 451 8 040 Ship operating expenses (43 718) (46
Slide 5: Balance Sheet - Highlights
Balance Sheet - Highlights 2023 2022 (in millions $) Mar 31 Dec 31 Assets • No remaining newbuilding commitments Cash 225 255 end Q123 as the Company took delivery of Other current assets 608 627 the two last VLCC newbuildings, Front Orkla Non-current assets and Front Tyne, in January 2023. Vessels
Slide 6: Frontline – the Cash Machine
Frontline – the Cash Machine Industry leading cash break even rates of $22.300 fleet average, including dry dock costs for eight SMAX tankers in 2023 Huge cash generation potential – Free Cash Flow indicates strong potential return Q1-23 fleet average opex excl. drydock $7,300 2 000 $8,71 9,00 25 00
Slide 7: Q1-23 Tanker Market
Q1-23 Tanker Market Untypical seasonal strength • All segments Frontline operates continued performing • Highest number of VLCC shipments to China seen • Elevated average weighted market earnings • Russian sanctions continue to yield inefficient trading patterns • Chinese imports moving to all-time-
Slide 8: Flows amidst OPEC+ voluntary cut
Flows amidst OPEC+ voluntary cut Volumes are down, but what about ton miles? • Russia continue to export, G7-Cap not an obstacle • Global demand expected up ~2mbd in 2H of 2023 • Both OPEC+ and Non-OPEC volumes down in May • Global Exports overall back to pre-covid level • Seasonal slow point of the
Slide 9: Utilization
Utilization Vessel Days Laden • Utilization on VLCC and Suezmax seasonally high • Suezmax seem to have found a range 20% above 2021 • LR2 more balanced, in line with pervious years • Seasonal shape prominent as the year progresses • VLCC still affected by rally in Q1 and mini rally mid May • Volatil
Slide 10: Orderbooks
Orderbooks 80 VLCC 60 2023 Fleet 20 + % above Orderbook % of Fleet 40 VLCC 881 111 12.60% 16 1.8 % 65 68 53 58 49 47 49 40 20 38 39 37 35 42 14 27 36 36 29 31 19 28 31 23 21 Suezmax 604 85 14.07% 18 3.0 % 12 # of vessels 0 -3 -1 1 1 -3 -9 -13 -6 -16 -18 -7 -1 -2 -10 -4 -2 -7 -5 -28 -26 -34 -28 -31 -
Slide 11: Summary
Summary • Highest Q1 profit since 2008 - $193 million - Cash dividend of $0.70 per share • Continued to captured value on time charter and assets at elevated point in the cycle • New orders seen for Suezmax and LR2, 2025 now ‘sold out’. • VLCC only two orders rumoured ytd, ~12% of tanker fleet above
Slide 12: Questions & Answers
Questions & Answers ie
Slide 13: www.frontlineplc.cy
I FRONTLINE M www.frontlineplc.cy
Slide 14: Non-GAAP measures reconciliation
Appendix 1 Non-GAAP measures reconciliation (in thousands of $ except per share) Q1 2023 Q4 2022 FY 2022 Total operating revenues net of voyage expenses and commission Total operating revenues 497,332 530,141 1,430,208 Voyage expenses and commission (158,827) (177,295) (605,544) Total operating reve