FRO - First Quarter 2020 Results - Seite 2

Average daily time charter equivalents ("TCEs")
($ per day)				Spot estimates	% covered	Estimated average daily BE rates for the balance of 2020
	Q1 2020	Q4 2019	2019	Q2 2020		2020
VLCC	74,800	58,000	35,900	92,500	75%	22,000
Suezmax tankers	57,800	38,200	25,800	69,500	63%	18,600
LR2 tankers	31,200	29,800	22,000	50,200	53%	15,000

The estimated average daily cash breakeven 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 hire, time charter hire and net general and administrative expenses.

Spot estimates are provided on a load-to-discharge basis. The rates quoted are for days currently contracted. The actual rates to be earned in the second quarter of 2020 will therefore depend on the number of additional days  we contract, and more importantly the number of additional days that each vessel is laden. Therefore, a high number of ballast days at the end of the quarter will limit the amount of additional revenues booked on a load to discharge basis. Furthermore, when a vessel remains uncontracted at the end of the quarter, the Company will recognize certain costs during the uncontracted days up until the period end, whereas if a vessel is contracted, then certain costs can be deferred and recognized over the load-to-discharge period.

The reporting of revenues on a load-to-discharge basis results in revenues being recognized over fewer days, but at a higher rate for those days. Over the life of a voyage there is no difference in the total revenues and costs to be recognized.

When expressing TCE per day for the first quarter of 2020, the Company uses the total available days for the quarter and not just the number of days the vessel is laden.

The Board of Directors
Frontline Ltd.
Hamilton, Bermuda
May 19, 2020

Questions should be directed to:

Robert Hvide Macleod: Chief Executive Officer, Frontline Management AS