Slide 1: Third Quarter Presentation Nov 2020
Third Quarter Presentation Nov 2020
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 2020 Q4 2020 est. % done VLCC $49,200 $22,600 74% Suezmax $25,100 $12,600 61% LR2/Aframax $12,800 $13,800 65% • Net income of $57.1 million, or $0.29 per diluted share • Adjusted net income of $56.4 million, or $0.29 per diluted share • Entered
Slide 4: Income Statement – Highlights
Income Statement – Highlights 2020 2020 2019 (in thousands of $ except per share data) Jul - Sep Apr - Jun Jan - Dec Adjustment items for Q3 2020: Total operating revenues (net of voyage expenses) 177 815 301 120 561 841 • $0.1 million unrealized gain on marketable Other operating gain (1 313) 12 88
Slide 5: Completed $920 million loan facilities in 2020
Completed $920 million loan facilities in 2020 $725m to refinance and $196m to partially finance new vessels Following recently completed refinancing of two term loan facilities with total balloon All loan facilities done at very attractive payments of $324.4m due in April 2021 and in June 2021 Fron
Slide 6: Balance Sheet - Highlights
Balance Sheet - Highlights 2020 2020 2019 (in millions $) Sep 30 Jun 30 Dec 31 Notes Assets Cash 211 241 177 • $432 million in cash and cash equivalents, Other current assets 194 227 271 including undrawn amount of unsecured facility, marketable securities and minimum Non-current assets cash require
Slide 7: Cash Breakeven and Cash Generation Potential
Cash Breakeven and Cash Generation Potential Well positioned to generate significant cash flow Daily cash breakeven and OPEX Cash sensitivity above breakeven levels 1 000 5,00 $ 4,52 4,50 $893 25 000 800 4,00 $21 900 $ 3,42 $20 400 3,50 20 000 $677 $19 500 600 3,00 $ per share / year $ millions / ye
Slide 8: Q320 Tanker Market
Q320 Tanker Market • Oil demand recovering; inventories started to draw significantly • OPEC+ production up ~1.6 mbd from June, but still ~ 5 mbd below Jan 2020 levels • Crude oil curves tightened up, and vessels on floating storage released • VLCC’s outperformed other asset classes, LR2 also suppor
Slide 9: Global fleet capacity continue to slow
Global fleet capacity continue to slow Tanker orderbooks at 20-year lows and more vessels reach “retirement age” VLCC fleet Commentary 80 • New vessels continue to enter the 60 markets – many absorbed by 40 clean products storage 65 69 14 53 58 # of vessels 20 38 36 36 29 31 39 49 47 50 39 • Deliver
Slide 10: Recycling and prices - VLCC
Recycling and prices - VLCC • Owners of older tonnage needs to be incentivized to recycle • Currently there is a disconnect between ‘vintage’ prices and recycling (steel) value • The vintage price is driven by demand for storage and alternative use • In time, prices converge, and recycling activity
Slide 11: Frontline ESG Strategy
Frontline ESG Strategy Efficient, Safe and Transparent operations have been Frontline core values for years • Frontline ESG Strategy means to structure communication on how our core values are embedded in our day-to-day operations, through the lens of capturing ESG relevant markers • As a significan
Slide 12: Tanker Market Outlook
Tanker Market Outlook • Increased Oil Supply is the key to restoring tanker market balances • Oil demand recovering fast, supply growth capped by the OPEC+ agreement • Libyan supply growth has surprised the market, oil prices still advancing • News of Covid-19 vaccines positively affecting the marke
Slide 13: Summary
Summary • Frontline is financially strong, no material debt maturities until 2023 • The company is well positioned towards ESG related expectations • Despite extended regional lockdowns, oil demand continues to recover • Crude oil price action indicates a change in oil market sentiment • Freight mar
Slide 14: Questions & Answers
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Slide 15: www.frontline.bm
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Slide 16: Appendix I Reconciliation
Appendix Appendix I Reconciliation FULL YEAR (Million $ except per share) Q3 2020 Q2 2020 Q1 2020 2019 This presentation describes: total operating revenues net of Total operating revenues net of voyage expenses Total operating revenues 247 387 412 957 voyage expenses, net income attributable to the