FRO - First Quarter 2014 Results

HIGHLIGHTS

• Frontline reports a net loss attributable to the Company of $12.1 million for the first quarter of 2014, equivalent to a loss per share of $0.13. 
• Frontline reports net income attributable to the Company of $3.6 million for the first quarter of 2014 when excluding loss on the sale of vessels, equivalent to earnings per share of $0.04.

Frontline will not pay a dividend for the first quarter of 2014.

Frontline issued 8,829,063 new shares in the first quarter further to the ATM offering launched in June 2013 and further 1,635,589 new shares in April 2014.

In April 2014, Frontline agreed with Rongsheng shipyard to swap its two Suezmax newbuildings on order with two similar Suezmax vessels from the same shipyard, at a lower contract price.

FIRST QUARTER 2014 RESULTS

The Board of Frontline Ltd. (the "Company" or "Frontline") announces a net loss attributable to the Company of $12.1 million in the first quarter, equivalent to a loss per share of $0.13, compared with a net loss of $13.0 million in the preceding quarter, equivalent to a loss per share of $0.15. The net loss attributable to the Company in the first quarter includes a loss on the sale of the VLCC Ulysses of $15.7 million. 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.

The average daily time charter equivalents ("TCEs") earned in the spot and period market in the first quarter by the Company's VLCCs and Suezmax tankers were $32,700 and $27,700, respectively, compared with $22,400 and $12,900, respectively, in the preceding quarter. The spot earnings for the Company's double hull VLCCs and Suezmax vessels were $32,500 and $27,700, respectively, compared with $21,600 and $12,900, respectively, in the preceding quarter.

Contingent rental expense of $13.0 million in the first quarter comprises $11.7 million relating to the amended charter parties for the vessels leased from Ship Finance International Limited and $1.3 million relating to the amended charter parties for four vessels leased from German KGs vessels. Contingent rental expense of $1.7 million in the fourth quarter relates to the amended charter parties for four KG vessels.