Slide 1: Third Quarter Presentation Nov 2023
Third Quarter Presentation Nov 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 On its way to become the largest tanker owner in the public domain Reported earnings basis load to discharge Q3 2023 Q4 2023 est. % done VLCC $42,500 $48,100 81% Suezmax $37,600 $50,300 70% $33,900 $51,300 70% LR2 / Aframax • Profit of $107.7 million, or $0.48 per basic and diluted share
Slide 4: Profit Statement – Highlights
Profit Statement – Highlights 2023 2023 2022 (in thousands of $ except per share data) Jul - Sep Apr - Jun Jan - Dec Notes Total operating revenues (net of voyage expenses)* 232 135 356 153 824 664 • Adjusted net income in the third quarter decreased by $129.2 million Other income 400 9 391 8 040 co
Slide 5: Balance Sheet - Highlights
Balance Sheet - Highlights 2023 2023 2022 (in millions $) Sep 30 Jun 30 Dec 31 Assets • Strong liquidity of $715 Cash 285 307 255 million in cash and cash equivalents, including Other current assets 570 591 627 undrawn amount of senior Non-current assets unsecured revolving credit Vessels and newbui
Slide 6: Competitive cash breakeven rates and Opex
Competitive cash breakeven rates and Opex Competitive cash breakeven rates of $24.200 fleet average, including dry dock costs for one VLCC and seven SMAX* tankers in the fourth quarter of 2023 at estimated cost of $2.000 Q3-23 fleet average opex excl. drydock $7.400 $28 200 25 000 $25 700 $24 200 20
Slide 7: Fully funded Acquisition of modern VLCCs
Fully funded Acquisition of 24 modern VLCCs High-quality fleet on the water ensuring immediate cash flow generation into the winter season Attractive debt package enabling for swift execution and low complexity Ambition to minimize need for cash from shareholder loan through Frontlines capacity to r
Slide 8: Q3-23 and the Current Market
Q3-23 and the Current Market • G7 price cap and increased scrutiny on ex-Russia 46 Global Oil Trade 1200 1150 players 44 1100 42 • China continue to grind record volumes, US 1050 Million BBL/Day 40 exports surprise to the upside 1000 Million BBL 38 950 • US sanctions on Venezuela lifted 36 900 850 •
Slide 9: OPEC – Output / Production / Exports
OPEC – Output / Production / Exports • Neither “Output” nor “Production” equals Exports Crude Production vs Exports • Oil demand is firm, but OPEC not the only supplier 22 30 • Production targets leaves room for exports to be adjusted 30 22 • Exports more correlated to domestic demand amongst the la
Slide 10: Tanker narrative these days
Tanker narrative these days • Russia, Iran and Venezuela resilient and growing exporters Crude/Co Exports 9 000 • US exports at record highs and increasing 8 000 • Venezuela expected to increase exports by 300kpd short 7 000 term to reach ~6-700kbd annually Kbpd 6 000 5 000 • ~2.5 mbd of refinery ca
Slide 11: The Very Long View
The Very Long View • East and West of Suez and the “pipelines” of the oceans 7,00 Crude distillation capacity additions • New oil production capacity and shale oil contribution West of Suez 6,00 2023 - 2025 • Refinery capacity buildup East of Suez 5,00 2025 - 2030 • Both Crude transportation (feedst
Slide 12: Orderbooks
Orderbooks 80 VLCC NOV 2023 Fleet 15 + % above 15 20 + % above 20 Orderbook % of Fleet 60 40 VLCC 885 248 28.02 % 108 12.20 % 16 1.8 % 65 68 1 53 58 49 47 49 40 20 38 27 36 36 29 31 39 31 23 21 37 35 42 19 28 21 2 4 6 3 # of vessels 0 -3 -9 -13 -6 -16 -7 -1 -2 -10 -4 -2 -7 -5 193 13.82 % -3 -1 Suezm
Slide 13: EU ETS
EU ETS Annual EU Voyages Report Emissions for Surrender T1 previous year 31 March corresponding EUAs 30 Sept performed T0 The scope of the EU ETS directive RV Verification process Frontline’s position • MT conventional fuel = ~3.2 tonne • Modern and energy efficient fleet. • Shipping to be included
Slide 14: Summary
Summary Tankers are performing… and now time for the VLCC to shine? • Frontline more than doubles its VLCC position, gearing up for tighter fundamentals • The fundamental backdrop remains - decades low orderbooks and extended lead times • Increases operational leverage as global oil demand is expect
Slide 15: Questions & Answers
Questions & Answers ie
Slide 16: www.frontlineplc.cy
I FRONTLINE M www.frontlineplc.cy
Slide 17: Non-GAAP measures reconciliation
Appendix 1 Non-GAAP measures reconciliation (in thousands of $ except per share) Q3 2023 Q2 2023 Q1 2023 Q4 2022 FY 2022 Total operating revenues net of voyage expenses and commission Total operating revenues 377,085 512,763 497,332 530,141 1,430,208 Voyage expenses and commission (145,051) (156,610