Frontline Plc · NYSE:FRO
Frontline — Q2 2015 Earnings Presentation
16 slides from Frontline's earnings presentation, Aug 28, 2015
Slide 1: Q2 2015 Results
Q2 2015 Results ”World leader in the international seaborne transportation of crude oil” August 26, 2015 1
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: Agenda
Agenda Second Quarter 2015 Highlights and TransactionsFinancial ReviewMarket UpdateOutlookQ & A 3
Slide 4: Highlights and Transactions
Highlights and Transactions The Company issued 18.8 million new shares in the second quarter under its ATM program and this program is fully utilized. In April 2015, the remaining outstanding balance on the convertible bond of $93.4 million was repaid in full upon maturity.In June 2015, the Company
Slide 5: Financial Highlights
Financial Highlights Q2 – 2015 resultsNet income : $17.4mNet income per share : $0.11Share price NYSE August 25, 2015: $2.32Market cap: $460m Second Quarter 2015 5
Slide 6: Income Statement
Income Statement Financial Review 6
Slide 7: Ship operating expenses/Off-hire
Ship operating expenses/Off-hire 2 Scheduled drydockings in Q3 2015 Financial Review 7
Slide 8: Balance Sheet
Balance Sheet Financial Review 8
Slide 9: Cash Cost Breakeven
Cash Cost Breakeven Financial Review 9
Slide 10: Earnings & Market Factors
Earnings & Market Factors The MarketOil supply remained high during the quarterOil demand increased from Q1‘Forced’ storage of oilVessel speed up absorbedHigh fleet utilization Market Update 10
Slide 11: VLCC Fleet
VLCC Fleet Fleet Delivery Schedule Current Fleet & Orderbook Current Fleet 639 Delivered 2015 9Orderbook 107 Estimated deliveries 2015 17Orderbook/Fleet 17% Source: Fearnleys Market Update 11
Slide 12: Suezmax Fleet
Suezmax Fleet Fleet Delivery Schedule Current Fleet & Orderbook Current Fleet 449 Delivered 2015 6Orderbook 67 Estimated deliveries 2015 3Orderbook/Fleet 15% Source: Fearnleys Market Update 12
Slide 13: Values & TC Rates
Values & TC Rates Newbuliding Prices TC Market Source: Clarkson Market Update 13
Slide 14: The Present Market
The Present Market Current earnings at the lowest point seen in 2015ReasonsSaudi exports down Iraqi (Basra) exports fell 20% in July Chinese imports down in Aug/Sep (record high, up 28% YoY in Jun/Jul ‘15)Refinery maintenance Market Update 14
Slide 15: Market Outlook
Market Outlook Risk factorsRally in the oil priceYard capacity / tanker orderbookDemolition slowdownOpec (Saudi) strategy changeA fall in fleet utilization (currently at about 88%)Bullish factorsOil supply looks to remain highAtlantic supply moves eastMajority of refinery expansion East of SuezHigh
Slide 16: Questions?
Questions? 16