Slide 1: Second Quarter Presentation Aug 2023
Second Quarter Presentation Aug 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 Frontline’s lean and efficient platform continued to yield shareholder returns Reported earnings basis load to discharge Q2 2023 Q3 2023 est. % done VLCC $64,000 $53,200 74% Suezmax $61,700 $48,800 67% $52,900 $40,500 57% LR2 / Aframax • Highest second quarter profit since 2008 of $230.7
Slide 4: Profit Statement – Highlights
Profit Statement – Highlights 2023 2023 2022 (in thousands of $ except per share data) Apr - Jun Jan - Mar Jan - Dec Highest second quarter profit since 2008! Total operating revenues (net of voyage expenses)* 356 153 338 505 824 664 Other income 9 391 14 289 8 040 Ship operating expenses (43 772) (
Slide 5: Balance Sheet - Highlights
Balance Sheet - Highlights 2023 2023 2022 (in millions $) Jun 30 Mar 31 Dec 31 Assets • No remaining newbuilding Cash 307 225 255 commitments as the Other current assets 591 608 627 Company took delivery of the two last VLCC newbuildings, Non-current assets Front Orkla and Front Tyne, Vessels and ne
Slide 6: Frontline – the Cash Machine
Frontline – the Cash Machine Industry leading cash break even rates of $22.700 fleet average, including dry dock costs for eight SMAX tankers in 2023 Huge cash generation potential – Free Cash Flow indicates strong potential return Q2-23 fleet average opex excl. drydock $7.300 $8,84 $27 000 2 000 9,
Slide 7: Q2-23 Tanker Market
Q2-23 Tanker Market Volatile ‘summer market’ • Asia Pacific continue to ‘pull’ volume • Russian Price Cap starting to bite • Increased supply from ‘New’ exporters • Refinery margins improving as we move out of maintenance season • OPEC cuts lend support to VLCC ton-miles • 2H-2023 Oil demand expecte
Slide 8: Russian Price Cap
Russian Price Cap Russian exports down as sanctions bite • G7-Crude Oil Price cap of $60 come in to play • Product exports less affected as below cap • Increasingly complex to freight Russian oil • Russian fleet struggle to maintain volumes • Vessels returning to the Non-Russian fleet • What will be
Slide 9: Refinery Margins
Refinery Margins Seasonal summer softness caused by refinery maintenance • April and September historical peaks for maintenance • Margin references firming in all basins • Less pronounced in 2022 and so far in 2023 • Diesel margins leading the pace, typical for the season • VLCC currently fix oil la
Slide 10: Orderbooks
Orderbooks 80 VLCC 2023 Fleet 20 + % above Orderbook % of Fleet 60 40 65 68 VLCC 883 108 12.23% 13 1.5 % 53 58 49 47 49 40 7 20 38 39 37 35 42 27 36 36 29 31 19 28 31 23 21 18 # of vessels 0 -3 -1 -3 -6 -1 -2 -10 -4 -2 -5 2 1 3 Suezmax 607 85 14.00% 27 4.4 % -9 -13 -16 -18 -7 -7 -28 -26 -34 -28 -31
Slide 11: Summary
Summary • Highest Q2 profit since 2008 - $210 million - Cash dividend of $0.80 per share • Asia demand supportive – OPEC Cuts drive ton-miles • Price Cap on Russian crude starting to bite • Seasonal refinery maintenance period coming to an end, margins improving • Ordering still muted, except for LR
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) Q2 2023 Q1 2023 Q4 2022 FY 2022 Total operating revenues net of voyage expenses and commission Total operating revenues 512,763 497,332 530,141 1,430,208 Voyage expenses and commission (156,610) (158,827) (177,295) (605