Slide 1: Investor presentation October 2023
Investor presentation October 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: Transaction highlights
Transaction highlights ✓ Acquisition fleet comprising 24x VLCCs of which 9 vessels are scrubber-fitted Acquisition of 24 ✓ Modern and high-quality fleet with an average age of 5.3 years – 100% ECO vessels modern VLCCs from Euronav ✓ All vessels on the water ensuring immediate cash flow generation in
Slide 4: Fully funded acquisition of 24 ECO VLCC tankers from Euronav
Fully funded acquisition of 24 ECO VLCC tankers from Euronav High-quality fleet on the water ensuring immediate cash flow generation into the winter season Fleet acquisition overview Transaction fully funded through an attractive debt package # Name Type DWT Built Yard / country ECO Scrubber 1 Clovi
Slide 5: Cementing Frontline's position
Cementing Frontline’s position Increasing fleet size by 57% (dwt) in an illiquid re-sale market, without impacting orderbook Total fleet size* VLCC fleet size* Total average age* 20 >2x 14.1 14 >2x 12.5 12.4 12.0 11.8 9.6 8.2 7 7.6 Years DWTm DWTm 9 9 6.1 8 6 7 6 6 4.1 5 4 3 3 3 EURN EURN TORM TORM
Slide 6: Post transaction cash generation
Post transaction cash generation Average cash breakeven increases with operation leverage – but so does the potential cash generation Efficient operations with average cash breakeven rates of $27,500, including dry dock costs for eight VLCCs and three Huge cash generation potential SMAX tankers in 2
Slide 7: Low orderbook has historically been a trigger for outsized rates
Low orderbook has historically been a trigger for outsized rates Current VLCC orderbook among the lowest seen in shipping ever All time low orderbook-to-fleet ratio per shipping segment vs average rates in the subsequent three years* 11% 10% Orderbook-to-fleet (%) 8% 7% 5% 3% 2% LNG Container LPG Dr
Slide 8: Unique combination of high utilization & rates and record low orderbook
Unique combination of high utilization & rates and record low orderbook VLCC orderbook of 2% despite VLCC earnings of ~$40k/day last 12 months and 1yr forward TC rates of $53k/day* VLCC orderbook to fleet ratio vs VLCC earnings last 12 months rolling average 60% 120,000 50% 100,000 40% 80,000 VLCC o
Slide 9: Highly compelling supply side fundamentals
Highly compelling supply side fundamentals High number of recycling and slow-steaming candidates, while ordering remains muted Number of VLCCs delivered by year* • VLCC orderbook at record low levels of ~2% ~14% ~30% ~30% ~40% ~2% • VLCC ordering remains muted: Only 11 vessels ordered last 12 months
Slide 10: Carrying capacity of deep-sea tankers in question
Oil demand Carrying capacity of deep-sea tankers in question EIA total world oil liquid fuels consumption 110 • EIA believes in 104.6 mbd demand by Dec 24, up 2.8 mbd from August 101.76 104.61 105 102.16 • ~92 VLCC equivalents* are needed, but only 17 to come • 54 VLCC equivalents turn 20 years by 2
Slide 11: Oil trades longer
Oil trades longer Regional supply and demand dislocation amplify freight demand World quarterly net exports crude and condensate Americas Europe Asia Africa 9,000 4,000 Tonne Miles Thousand BBL/Day -1,000 -6,000 -11,000 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2
Slide 12: Summary
Summary Uniquely positioned to benefit from a tight market balance • Frontline more than doubles its VLCC position, in an illiquid re-sale market • Increases operational leverage as global oil demand is expected to grow beyond pre-pandemic highs • Frontline’s total fleet grows by 57% in dwt terms, 3
Slide 13: www.frontlineplc.cy
I FRONTLINE M www.frontlineplc.cy