Slide 1: Second Quarter Presentation August 2024
Second Quarter Presentation August 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 Q3 2024 spot Q2 2024 TCE currently % done contracted VLCC $49,600 $47,400 79% $45,600 $41,900 85% Suezmax $53,100 $50,100 65% LR2 / Aframax • Profit of $187.6 million, or $0.84 per basic and diluted share for the second quarter of 2024 • Adjusted
Slide 4: Profit Statement – Highlights
Profit Statement – Highlights 2024 2024 2023 (in thousands of $ except per share data) Apr - Jun Jan - Mar Jan - Dec Notes • The adjustments in the second quarter of 2024 consist of: Total operating revenues (net of voyage expenses)* 358 231 371 209 1 183 589 - $51.5 million gain on sale of vessels
Slide 5: Balance Sheet - Highlights
Balance Sheet - Highlights 2024 2024 2023 (in millions $) Jun 30 Mar 31 Dec 31 Assets • Strong liquidity of $567 Cash 359 297 308 million in cash and cash Other current assets 500 542 420 equivalents, including undrawn amount of senior unsecured Non-current assets revolving credit facility, Vessels
Slide 6: Completed the strategy of re-leveraging and divesting older vessels
Completed the strategy of re-leveraging and divesting older vessels This involves optimizing the capital structure through refinancing of 36 vessels and divesting eight older vessels ~$1.55bn Recent and ongoing refinancings have secured long-term financing at highly attractive terms Extended Maturit
Slide 7: 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 $25.700 fleet average for the next 12 months, including dry dock costs for four VLCCs and two Suezmax ~ 6 Years 99% 56% tankers Avera
Slide 8: Cash Generation
Cash Generation ~30,000 earnings days annually 30% increase from current spot market will increase the potential cash 2,50 generation with ~116% $2,35 500 $1,93 2,00 400 $1,51 1,50 Free Cash Flow ($m) FCF per share ($) 300 $1,09 $522m 1,00 $429m 200 $335m $242m 0,50 100 0 0,00 VLCC 33.5k VLCC 36.9k
Slide 9: Current Market narrative
Current Market narrative • The compliant and non-compliant ‘market divide’ grows as 23% of the Global fleet is suspected to be involved in sanctioned trade sanctions expands VLCC Suezmax Afra/LR2 • Geopolitical risk linked to the Middle East ever increasing 143 80 7 51 202 16 % 13 % 115 8% 18 % • Ch
Slide 10: Sanctions exposed trade growth
Sanctions exposed trade growth • Increased scrutiny on Russian trade and growth in Iranian exports Sanctioned Crude/Co Flows creates a growing two-tier market in shipping (assuming 25% of Russian volumes are compliant) 7 000 16% • 12-18% of all transported oil is exposed to sanctions 14% 6 000 • Dar
Slide 11: Tankers Seasonality
Tankers Seasonality • 90% of the global population lives in the Northern Hemisphere Oil in Transit 1 175 000 • EIA expect World Consumption up by 1.5mbd by December 1 125 000 • Well pronounced long term historical seasonality in Oil-In-Transit and freight earnings as we approach winter, starting in
Slide 12: Orderbooks
Orderbooks 80 80 80 VLCC VLCC Aug 24: Fleet 15 + % above 15 20 + % above 20 Orderbook % of Fleet 60 60 60 40 40 40 VLCC 884 296 33.48 % 132 14.93 % 54 6.1 % 65 68 68 53 5858 65 49 49 20 20 38 39 53 49 47 47 49 40 42 23 23 20 38 27 36 38 36 31 39 31 40 37 37 3535 42 22 1 27 36 36 29 29 31 19 28 19 28
Slide 13: Summary
Summary Decades high earnings capacity into second half for Frontline • Strong balance sheet with sensible leverage on our modern fleet • Growing divide between compliant and sanctioned trade • Security situation in Red Sea / Gulf of Aden and the Middle East ever increasing • As delivery slots for n
Slide 14: Questions & Answers
Questions & Answers ie
Slide 15: www.frontlineplc.cy
I FRONTLINE M www.frontlineplc.cy
Slide 16: Non-GAAP measures reconciliation
Appendix 1 Non-GAAP measures reconciliation (in thousands of $ except per share) Q2 2024 Q1 2024 FY 2023 Q4 2023 Total operating revenues net of voyage expenses and commission Total operating revenues 556,026 578,397 1,802,184 415,004 Voyage expenses and commission (197,795) (207,188) (618,595) (158