FRO – Fourth Quarter and Full Year 2023 Results - Seite 2

Inger M. Klemp, Chief Financial Officer of Frontline Management AS, added:

"When we entered into agreements with Euronav to acquire a high-quality ECO fleet of 24 VLCCs on October 9, 2023, we communicated that the Hemen shareholder loan may not be fully drawn as the Company was exploring other alternatives to free up capital, including re-leveraging part of the existing Frontline fleet and/or sale of older non-eco vessels. In January and February 2024, we executed on this with the agreement to sell six, older non-eco vessels and the ongoing process of refinancing 24 vessels, on, what we believe are, attractive terms, expected to generate net cash proceeds of approximately $646.0 million. This will enable us to fully repay the Hemen shareholder loan and the amount drawn under the $275.0 million senior unsecured revolving credit facility with an affiliate of Hemen in relation to the Acquisition and maintain our competitive cash breakeven rates.”

Average daily time charter equivalents ("TCEs")¹

($ per day)	Spot TCE						Spot TCE estimates	% Covered	Estimated average daily cash breakeven rates
	2023	Q4 2023	Q3 2023	Q2 2023	Q1 2023	2022	Q1 2024		2024
VLCC	50,300	42,300	42,500	64,000	52,500	31,300	55,100	81%	28,800
Suezmax	52,600	45,700	37,600	61,700	64,000	37,100	52,800	72%	23,700
LR2 / Aframax	46,800	42,900	33,900	52,900	56,300	38,500	67,800	69%	21,200

In December 2023, the Company took delivery of 11 VLCCs as part of the Acquisition. These vessels contributed 184 trading days net of offhire, of which 150 were ballast days. This negatively impacted the overall VLCC spot rate by $3,100 per day as limited revenues were recorded in relation to these vessels, whereas the Company includes all trading days in the VLCC spot rate. The spot TCEs presented for the fourth quarter of 2023 in the table above exclude the impact of the vessels delivered as a result of the Acquisition.