FRNT - Second quarter and six months 2014 results - Seite 3

Corporate

In April 2014, the Company sold 2,854,985 of its shares in AGHL for net proceeds of $57.1 million and recorded a gain of $16.9 million in the second quarter. The Company currently owns 4,100,990 shares in AGHL representing approximately 11.6% of the total shares outstanding.

In April 2014, the Company completed the previously announced sale of five Capesize newbuilding contracts to KTL and recorded a net gain of $74.8 million in the second quarter. The Company received 15.5 million shares as consideration and currently owns approximately 31.6% of the total shares outstanding in KTL.

The Company purchased 2,523,867 of its own shares in the three months ended June 30, 2014 for $19.8 million and purchased 1,130,662 of its own shares in the three months ended March 31, 2014 for $8.6 million. These shares have been acquired further to a Board resolution to buy up to 49,820,000 shares. 245,445,471 ordinary shares were outstanding as of June 30, 2014, and the weighted average number of shares outstanding for the quarter was 247,285,614. The Company has purchased 3,137,588 of its own shares since June 30, 2014 for $22.1 million.

The Company announces a cash dividend for the second quarter of 2014 of $0.05 per share. The ex-dividend date has been set to September 9, 2014, the record date is September 11, 2014 and the distribution date is on or about September 25, 2014.

The Market

Crude

The market rate for a VLCC trading on a standard 'TD3' voyage between the Arabian Gulf and Japan in the second quarter of 2014 was WS 38, representing a decrease of WS 13 points from the first quarter of 2014 and in line with the second quarter of 2013. The flat rate decreased by 6.7 percent from 2013 to 2014.

The market rate for a Suezmax trading on a standard 'TD5' voyage between West Africa and Philadelphia in the second quarter of 2014 was WS 63, representing a decrease of WS 16 points from the first quarter of 2014 and an increase of WS 9 points from the second quarter of 2013. The flat rate decreased by 6 percent from 2013 to 2014.

Bunkers at Fujairah averaged $601/mt in the second quarter of 2014 compared to $611/mt in the first quarter of 2014. Bunker prices varied between a high of $621/mt on June 23^rd and a low of $589/mt on May 8^th.

The International Energy Agency's ("IEA") August 2014 report stated an OPEC crude production of 30.0 million barrels per day (mb/d) in the second quarter of 2014. This was unchanged compared to the first quarter of 2014.