FRO - Fourth Quarter and Full Year 2018 Results

Frontline Ltd. (the "Company" or "Frontline"), today reported unaudited results for the three months and year ended December 31, 2018:

Highlights

• Net income attributable to the Company was $25.4 million, or $0.15 per share, for the fourth quarter of 2018.
• Net income attributable to the Company was $26.3 million, or $0.15 per share adjusted for certain non-cash items for the fourth quarter of 2018.
• Reported spot average daily time charter equivalent ("TCE") was $28,400 for VLCCs in the fourth quarter, impacted significantly by a high number of ballast days towards the end of the quarter, deferring revenue recognition into the first quarter of 2019.^[1] Reported spot TCE for Suezmax tankers and LR2/Aframax tankers were $26,100 and $18,700, respectively.
• Spot TCE of $41,300 contracted for 84% of vessel days for VLCCs, spot TCE of $33,300 contracted for 77% of vessel days for Suezmax tankers and spot TCE of $26,100 contracted for 73% of vessel days for LR2/Aframax tankers, estimated for the first quarter of 2019, including deferred revenue recognition from the fourth quarter of 2018.
• In November 2018, the Company extended the terms of its senior unsecured loan facility of up to $275.0 million with an affiliate of Hemen Holding Ltd. by 12 months to November 2020.
• In January 2019, the Company increased its ownership interest to 28.9% in Feen Marine Scrubbers Inc. ("FMSI").
• In January 2019, the Company took delivery of the VLCC newbuilding Front Defender.

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

"The market improved in the fourth quarter before pulling back due to OPEC cuts, accelerated fleet growth and seasonal factors. In recent weeks, the market has reversed course, with US export volumes and VLCC rates doubling since January. We expect the market to remain volatile but continue to trend higher as the fleet prepares for new regulations and oil volumes return. Crude oil tanker demand will also receive a significant boost as refineries increase crude import runs to meet incremental demand for compliant fuels prior to the implementation of IMO 2020 regulations. Although there are always risks related to slowing global demand, multiple positive market drivers should result in strong year over year growth in earnings."