Frontline Plc · NYSE:FRO
Frontline — Q3 2015 Earnings Presentation
16 slides from Frontline's earnings presentation, Nov 25, 2015
Slide 1: Q3 2015 Results
’ Q3 2015 Results World leader in the international seaborne transportation of crude oil November 24, 2015 *
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 THE
Slide 3: Agenda
’ Agenda Q3 2015 Highlights Financial ReviewMarket ReviewOutlookQ & A Third Quarter 2015
Slide 4: Q3 2015 Company Highlights
’ Q3 2015 Company Highlights In July 2015, the Company and Frontline 2012 Ltd entered into an agreement and plan of merger. Shareholder meetings of each of Frontline and Frontline 2012 will be held November 30, 2015 to vote to approve the Merger Agreement.Assuming approval and completion of the merg
Slide 5: Q3 2015 Financial Highlights
’ Q3 2015 Financial Highlights Financial Review 2 Net income attributable to the Company : $17.4mNet income adjusted for non recurring items : $8.9mEPS : $0.09EPS adjusted for non recurring items : $0.045Average daily TCEsVLCC: $45,600Suezmax: $28,100
Slide 6: Income Statement
’ Income Statement 3 Financial Review
Slide 7: TCEs and Cash Cost Breakeven
’ TCEs and Cash Cost Breakeven 4 VLCC 3Q 2015 TCE rates $/day Estimated cash cost breakeven rates VLCC*$27,700/day *Estimated cash cost breakeven rates for the remainder of 2015; includes bareboat hire / installments, interest loans, opex, drydock, and admin expenses. Suezmax 3Q 2015 TCE rates $/day
Slide 8: Ship Operating Expenses/Off-hire
’ Ship Operating Expenses/Off-hire Two Scheduled drydockings in Q4 2015 5 Financial Review
Slide 9: Balance Sheet
’ Balance Sheet Financial Review 6
Slide 10: Market Review
’ Market Review Oil supply remained high during the quarterOil demand increased from Q2‘Forced’ storage of oilVessel speed up absorbed 7 Daily TCE rates (2012 to present) 3Q 15 Commentary
Slide 11: Time Charter Market
’ Time Charter Market Source: Clarksons Platou 8 Market Review
Slide 12: VLCC Fleet Development
’ VLCC Fleet Development VLCC Fleet Growth(1) (1) Net additions based on known orderbook and Frontline’s internal scrapping assumptions Current orderbook stands at 107 vessels, or 18% of the fleetIn 2015, 26 vessels have been delivered YTD, with an estimated 1 delivery scheduled for the year 9 Third
Slide 13: Suezmax Fleet Development
’ Suezmax Fleet Development Suezmax Fleet Growth(1) (1) Net additions based on known orderbook and Frontline’s internal scrapping assumptions Current orderbook stands at 94 vessels, or 21 % of the fleetIn 2015, 6 vessels have been delivered YTD, with an estimated 3 deliveries scheduled for the year
Slide 14: Newbuilding Delivery Schedule
’ Newbuilding Delivery Schedule Source: Fearnleys 11 Market Review
Slide 15: Market Outlook
’ Market Outlook Risk factorsRally in the oil priceYard capacity / tanker orderbookDemolition slowdownOpec (Saudi) strategy changeInventory drawdown Bullish factorsOil supply looks to remain highDemand is supported by the low oil priceAtlantic supply moves eastMajority of refinery expansion East of
Slide 16: Questions?
’ Questions? 17