Frontline Plc · NYSE:FRO
Frontline — Pareto Securities Energy Conference 2024
14 slides from Frontline's conference presentation, September 2024
Slide 1: Pareto Securities Energy Conference Sep 2024
Pareto Securities Energy Conference Sep 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: One of the world’s largest tanker companies
One of the world’s largest tanker companies World leader in the international seaborne transportation of crude oil and refined products • Large, diverse fleet of modern tankers, representing one of the youngest and 41 most energy efficient fleets in the industry VLCC • Strong industry relationships
Slide 4: Q2-24 Highlights
Q2-24 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 • Adj
Slide 5: Completed the strategy of re-leveraging and divesting older vessels
Completed the strategy of re-leveraging and divesting older vessels 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 Maturities Improved M
Slide 6: 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 7: Cash Generation
Cash Generation ~30,000 earnings days annually 30% increase from current spot market will increase the potential cash 3.00 generation with about ~100% $2.78 600 2.50 $2.32 500 $1.87 2.00 400 Free Cash Flow ($m) FCF per share ($) $1.42 1.50 300 $618m $518m 1.00 200 $417m $316m 0.50 100 0 0.00 VLCC 38
Slide 8: Current Market narrative
Current Market narrative 23% of the Global fleet is suspected to be involved in sanctioned trade • The compliant and non-compliant ‘market divide’ grows as sanctions expand VLCC Suezmax Afra/LR2 • Geopolitical risk linked to the Middle East ever increasing 80 143 51 202 7 13% 115 • Chinese imports i
Slide 9: Sanctions exposed trade growth
Sanctions exposed trade growth Sanctioned Crude/Co Flows • Increased scrutiny on Russian trade and growth in Iranian exports creates a (assuming 25% of Russian volumes are compliant) growing two-tier market in shipping 7,000 16% 6,000 14% • 12-18% of all transported oil is exposed to sanctions 12% 5
Slide 10: Orderbooks
Orderbooks 80 80 80 VLCC VLCC Sep 2024 Fleet 15 + % above 15 20 + % above 20 Orderbook % of Fleet 60 60 60 40 40 40 65 68 68 53 5858 65 49 49 VLCC 884 296 33.5 % 132 14.9 % 54 6.1 % 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 11: Tankers Seasonality
Tankers Seasonality 1,175,000 Oil in Transit • 90% of the global population lives in the Northern Hemisphere • 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 1,075,000 earnings as we approach winter, st
Slide 12: The Structural Supply Story Remains
The Structural Supply Story Remains • From 2024 onwards we hit a “wall” of replacement needs, based on tonnage Active Yards: South Korea China Japan World facing phase-out between 20-25 years of age • Global Yard capacity is down 52% basis number of yards compared to 2011 2011 24 275 64 519 building
Slide 13: Summary
Summary Decades high earnings capacity into second half……. • Strong balance sheet with sensible leverage on our modern fleet • Growing divide between the compliant and sanction exposed trade • Security situation in Red Sea / Gulf of Aden and the Middle East ever increasing • As delivery slots for ne
Slide 14: www.frontlineplc.cy
I FRONTLINE M www.frontlineplc.cy