FRO - Fourth Quarter and Full Year 2013 Results

Highlights

• Frontline reports a net loss attributable to the Company of $13.0 million for the fourth quarter of 2013, equivalent to a loss per share of $0.15.  

• Frontline reports a net loss attributable to the Company of $188.5 million for the year ended December 31, 2013, equivalent to a loss per share of $2.36.  

Frontline reports a net loss, excluding impairment loss on vessels, attributable to the Company of $84.8 million for the year ended December 31, 2013, equivalent to a loss per share of $1.06. 

Frontline will not pay a dividend for the fourth quarter of 2013.  

Frontline issued 1,193,300 new shares in the fourth quarter further to the ATM offering launched in June 2013. 

In January 2014, Frontline increased the amount that may be raised from the ATM from up to $40.0 million to up to $100.0 million. Frontline issued 8,829,063 new shares under the ATM during January 2014. 

Fourth Quarter and Full Year 2013 Results

The Board of Frontline Ltd. (the "Company" or "Frontline") announces a net loss attributable to the Company of $13.0 million in the fourth quarter, equivalent to a loss per share of $0.15, compared with a net loss of $36.4 million in the preceding quarter, equivalent to a loss per share of $0.46. The net loss attributable to the Company in the fourth quarter includes a net gain of $13.8 million, which was recognized on the lease terminations of the VLCCs Front Champion and Golden Victory and a loss of $12.7 million, which was recognized on the conversion of $25.0 million of the Company's convertible bonds into cash and shares.

Following the termination of the lease on the Company's final OBO carrier, Front Guider, in the first quarter of 2013 the results of the OBO carriers have been recorded as discontinued operations in accordance with U.S. generally accepted accounting principles.

The average daily time charter equivalents ("TCEs") earned in the spot and period market in the fourth quarter by the Company's VLCCs and Suezmax tankers were $22,400 and $12,900, respectively, compared with $16,100 and $12,400, respectively, in the preceding quarter. The spot earnings for the Company's double hull VLCCs and Suezmax vessels were $21,600 and $12,900, respectively, compared with $13,900 and $12,400, respectively, in the preceding quarter.

Contingent rental expense in the fourth quarter relates to the amended charter parties for four vessels leased from German KGs vessels. Contingent rental income in the third quarter is primarily due to the release of an accrual, which was not required at September 30.