FRO – Second Quarter and Six Months 2023 Results

FRONTLINE PLC REPORTS RESULTS FOR THE SECOND QUARTER ENDED JUNE 30, 2023

Frontline plc (the “Company” or “Frontline”), today reported unaudited results for the six months ended June 30, 2023:

Highlights 

• Highest second quarter profit since 2008 of $230.7 million, or $1.04 per basic and diluted share for the second quarter of 2023.
• Adjusted profit of $210.0 million, or $0.94 per basic and diluted share for the second quarter of 2023.
• Declared a cash dividend of $0.80 per share for the second quarter of 2023.
• Reported revenues of $512.8 million for the second quarter of 2023.
• Reported spot TCEs for VLCCs, Suezmax tankers and LR2/Aframax tankers in the second quarter of 2023 were 64,000 , 61,700  and 52,900 per day, respectively.
• For the third quarter of 2023, we estimate spot TCE on a load-to-discharge basis of $53,200 contracted for 74% of vessel days for VLCCs, $48,800 contracted for 67% of vessel days for Suezmax tankers and $40,500 contracted for 57% of vessel days for LR2/Aframax tankers.

Lars H. Barstad, Chief Executive Officer of Frontline Management AS, commented:

“Frontline had another solid quarter as supportive tanker fundamentals continued. With all our asset classes performing, Frontline’s lean and efficient platform continued to yield shareholder returns. Despite OPEC production cuts, global oil in transit outperformed seasonal patterns, as Asian oil demand attracted incremental barrels from other regions of the world. Despite uncertainties in the global macro environment, demand for oil and oil products seem largely unaffected as we head towards the winter in the northern hemisphere. The current softness in certain tanker segments is in line with historical seasonal expectations and improving refinery margins aligns with the market playbook for this time of the year.” 

Average daily time charter equivalents ("TCEs")¹

($ per day)	Spot TCE					Spot TCE estimates	% Covered	Estimated average daily cash breakeven rates
	2023	Q2 2023	Q1 2023	Q4 2022	2022	Q3 2023		2023
VLCC	58,300	64,000	52,500	63,200	31,300	53,200	74%	27,000
Suezmax	62,900	61,700	64,000	57,900	37,100	48,800	67%	23,400
LR2 / Aframax	54,600	52,900	56,300	58,800	38,500	40,500	57%	16,600

We expect the spot TCEs for the full third quarter of 2023 to be lower than the TCEs currently contracted, due to the impact of ballast days at the end of the second quarter. The number of ballast days at the end of the second quarter was 435 for VLCCs, 353 for Suezmax tankers and 167 for LR2/Aframax tankers.