Slide 1: Third Quarter Presentation Nov 2021
Third Quarter Presentation Nov 2021
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 2021 Q4 2021 est. % done VLCC $10,500 $21,600 79% Suezmax $7,900 $17,900 72% LR2 / Aframax $10,700 $16,000 64% • Net loss of $33.2 million, or $0.17 per diluted share • Adjusted net loss of $35.9 million, or $0.18 per diluted share • Entered in
Slide 4: Income Statement – Highlights
Income Statement – Highlights 2021 2021 2020 Adjustment items for Q3 2021: (in thousands of $ except per share data) Jul - Sep Apr - Jun Jan - Dec Total operating revenues (net of voyage expenses) 68,961 79,955 868,089 • $0.2 million gain on marketable securities Other operating gain 278 596 29,902
Slide 5: Balance Sheet - Highlights
Balance Sheet - Highlights 2021 2021 2020 Notes (in millions $) Sep 30 Jun 30 Dec 31 • $190 million in cash and cash equivalents, Assets including undrawn amount of unsecured Cash 122 142 190 Other current assets 198 190 189 facility, marketable securities and minimum cash requirements bank as per 3
Slide 6: Cash Breakeven and Cash Generation Potential
Cash Breakeven and Cash Generation Potential Low cash breakeven levels provide significant operating leverage & protect our cash flows during periods of market weakness Huge cash generation potential – Free Highly attractive terms on the new financings, Cash Flow Yield (%) and Free Cash Flow reduce
Slide 7: Q321 Tanker Market
Q321 Tanker Market Tanker rates bottomed at the seasonally weakest point (in a ‘normal’ year) • Global oil consumption averaged 98.6 million bbl/day in Q3-21, up 1.9 mbd from Q2-21. Supply averaged 96.8 million bbl/day hence the world continued to draw 1.8 mbd of inventories • OPEC+ supply rose an a
Slide 8: Tanker Orderbooks
Tanker Orderbooks Tanker orderbooks are shrinking as vessels deliver 80 • Q3-21 saw 1 Suezmax order and 8 LR2/Aframax orders. VLCC 60 • Delivery window for ordering a significant number of tankers is now 40 even limited for 2024…. 65 68 3 53 58 49 47 49 40 20 38 27 36 36 29 31 39 31 23 21 37 32 47 •
Slide 9: Tanker recycling
Tanker recycling With record high recycle-steel prices, activity is finally accelerating 1,60% Recycling - Tankers 10kt DWT + Commentary 1,40% • Recycling activity has picked up during 2021. 1,20% • 2017-2018 was the last big period for % of total tanker fleet 1,00% vessel retirement, Q3-21 alone 0,
Slide 10: US Strategic Petroleum Reserve Release
US Strategic Petroleum Reserve Release Potential impact of coordinated SPR releases US SPR vs US Exports -4000 Commentary -3000 3500 • US has released volume from their SPR on -2000 a few occasions the last 18 months. Change in SPR (KBBL) -1000 3000 US Exports (KBD) • Despite US inventories being be
Slide 11: Summary
Summary • Demand, and supply of oil continues to rise, but the Omicron version now clouding the outlook • Tanker markets have recovered since Q3-21, but still challenged by oil supply not fully at pre pandemic levels • Tanker recycling finally starting to make an impact on vessel supply • US SPR rel
Slide 12: Questions & Answers
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Slide 13: www.frontline.bm
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Slide 14: Appendix
Appendix Appendix 1 Reconciliation This presentation describes: total operating revenues net (Million $ except per share) Q3 2021 Q2 2021 Q1 2021 FY 2020 of voyage expenses, net income attributable to the Total operating revenues net of voyage expenses Company adjusted for certain non-cash items ("N