ITLC - Second Quarter and Six Months 2014 Results - Seite 2

In August 2014, the average cash breakeven rate for the remaining part of 2014 is approximately $30,800 per day for the spot trading VLCC Ulriken.

Other Matters

In July 2014, the Company received a request from Chevron to terminate the three bareboat charters for the Calpetro fleet early and not April 1, 2015 as scheduled. Such early termination would also result in the full redemption of all the outstanding Term Notes. The Company is currently in discussion with Chevron on this matter.

In July 2014, BP gave twelve months irrevocable notice of termination of the bareboat charter for the VLCC British Purpose. The vessel will be redelivered to the Company on July 14, 2015.

In July 2014, several of the subsidiaries and related entities in the Windsor group (the "Windsor group"), owned by ITCL, filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court in Wilmington, Delaware. In connection with the filing, the Windsor group has entered into a restructuring support agreement with bondholders. Under the restructuring and support agreement, the supporting holders of the Notes have agreed to support a plan of reorganization that would convert claims on account of the Notes for 100% of the equity in the reorganized Windsor group. On August 25th a plan of reorganization was filed the terms of which are consistent with the Plan Support Agreement. This could provide for Windsor to emerge as early as November. A subsidiary of Frontline will enter into a revised management agreement with the reorganized Windsor group and will continue to provide commercial management for its vessels.

74,825,166 ordinary shares were outstanding as of June 30, 2014, and the weighted average number of shares outstanding for the second quarter was also 74,825,166.

The Market

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 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.

The IEA estimates that world oil demand averaged 91.7 mb/d in the second quarter of 2014, which is an increase of 0.2 mb/d compared to the previous quarter. IEA estimates that world oil demand in 2014 will be 92.7 mb/d, representing an increase of 1.2 percent or 1.1 mb/d from 2013.