FRO - Third Quarter and Nine Months 2018 Results

Frontline Ltd. (the "Company" or "Frontline"), today reported unaudited results for the three and nine months ended September 30, 2018:

Highlights

• Net income attributable to the Company of $2.2 million, or $0.01 per share, for the third quarter of 2018.
• Net loss attributable to the Company adjusted for certain non-cash items of $8.4 million, or $0.05 per share, for the third quarter of 2018.
• Spot TCE of $22,000 for VLCCs less than 15 years of age in the third quarter.
• Spot TCE of $35,000 booked for 74% of vessel days for VLCCs less than 15 years of age in the fourth quarter.
• In November 2018, ordered exhaust gas cleaning systems ("EGCS") for a further 12 vessels from Feen Marine Scrubbers Inc. ("FMSI"), increasing commitment to installing EGCS on 20 vessels. 
• In November 2018, extended the terms of its senior unsecured loan facility of up to $275.0 million facility with an affiliate of Hemen Holding Ltd. by 12 months to November 2020.

Robert Hvide Macleod, Chief Executive Officer of Frontline Management AS commented:

"Tanker markets are beginning to rebalance following 18 months of extremely challenging conditions and we are optimistic that the market has now exited the cycle trough. Oil inventory draws, fleet growth and production cuts have been against us, but these important factors are now turning in our favor. The most important factor, oil demand, remains strong.

Frontline has actively positioned its fleet to participate in the market upturn.  We have a large fleet of modern and fuel-efficient vessels, with an average age of 4.1 years and our cash breakeven levels are among the most competitive in the industry. We expects that our positioning for IMO 2020, with our equity investment in FMSI and the planned installation of scrubbers on a number of our vessels, will result in a significant increase in cash generation should our market view unfold."

The average daily time charter equivalents ("TCE") earned by Frontline in the quarter ended September 30, 2018, the prior quarters and in the year ended December 31, 2017 are shown below, along with spot estimates for the fourth quarter of 2018 and the estimated average daily cash break-even ("BE") rates for the remainder of 2018:

Average daily time charter equivalents ("TCEs")
($ per day)	Spot					Spot estimates	% covered	Estimated average daily cash BE rates
	YTD 2018	Q3 2018	Q2 2018	Q1 2018	2017	Q4 2018		2018
VLCC	15,400	19,900	11,700	14,900	22,400	34,000	77%	22,400
SMAX	14,300	13,500	14,100	15,400	17,300	24,000	65%	18,600
LR2	13,600	14,300	11,700	14,800	14,400	17,000	59%	16,400

The estimated average daily cash break-even rates are the daily TCE rates the vessels must earn in order to cover operating expenses including dry docks, repayments of loans, interest on loans, bareboat/tc hire and general and administrative expenses.