FRO - Second Quarter and Six Months 2014 Results

Highlights

• Frontline reports a net loss attributable to the Company of $78.2 million for the second quarter of 2014, equivalent to a loss per share of $0.81. 
• Frontline reports a net loss attributable to the Company of $22.1 million for the second quarter of 2014, when excluding impairment loss of $56.2 million, equivalent to a loss per share of $0.23. 

Frontline reports a net loss attributable to the Company of $90.3 million for the six months ended June 30, 2014, equivalent to a loss per share of $0.95. 

Frontline reports a net loss attributable to the Company of $18.4 million for the six months ended June 30, 2014, when excluding loss on sale of vessels and impairment loss, equivalent to a loss per share of $0.19. 

Frontline has issued 2,865,511 new shares under the ATM program in the second quarter and a further 1,140,226 new shares in July 2014.

• Frontline took delivery of the Suezmax newbuilding, Front Ull, in May 2014.
• Frontline entered into a $60.0 million term loan facility in June 2014 to part finance its two Suezmax newbuildings.
• Frontline agreed with Ship Finance in July 2014 to terminate the long term charter parties for the 1999 built VLCCs Front Opalia, Front Comanche and Front Commerce and Ship Finance simultaneously sold the vessels to unrelated third parties. The charter parties are expected to terminate in the fourth quarter of 2014.

Second Quarter and Six Months 2014 Results

The Board of Frontline Ltd. (the "Company" or "Frontline") announces a net loss attributable to the Company of $78.2 million in the second quarter, equivalent to a loss per share of $0.81, compared with a net loss of $12.1 million for the first quarter, equivalent to a loss per share of $0.13.

The Company has recorded a vessel impairment loss of $56.2 million in the three and six months ended June 30, 2014. This loss relates to the VLCCs Front Opalia, Front Commerce and Front Comanche.  Impairment losses are taken when events or changes in circumstances occur that cause the Company to believe that future cash flows for an individual vessel will be less than its carrying value and not fully recoverable. In such instances an impairment charge is recognized if the estimate of the undiscounted cash flows expected to result from the use of the vessel and its eventual disposition is less than the vessel's carrying amount.