Frontline (FRO) investor relations material

Executive summary

• Reported Q4 2025 profit of $228 million ($1.02/share), adjusted profit of $230.4 million ($1.03/share), and revenues of $624.5 million, driven by record TCE rates and lower operating expenses.

• Declared a cash dividend of $1.03 per share for Q4 2025.

• Sold eight older VLCCs for $831.5 million and acquired nine new eco VLCCs for $1.224 billion, supporting fleet renewal and efficiency.

• Secured one-year time charter-out agreements for eight VLCCs at strong rates.

• Maintains strong liquidity of $705 million and no significant debt maturities until 2030.

Financial highlights

• Adjusted profit increased sharply quarter-over-quarter, mainly due to TCE earnings rising from $248 million to $424.5 million.

• Q4 2025 revenues reached $624.5 million; EBITDA was $359.9 million.

• Ship operating expenses decreased by $7.1 million, aided by supplier rebates; Q4 2025 fleet average OpEx (excluding dry dock) was $7,600/day.

• Cash generation potential at current rates is $2.8 billion ($12.51/share), with a 34% cash flow yield.

• Net cash provided by operating activities in 2025 was $682.5 million.

Outlook and guidance

• Q1 2026 spot TCEs contracted at $107,100 for VLCC, $76,700 for Suezmax, and $62,400 for LR2/Aframax, with high coverage rates.

• 92% of VLCC, 83% of Suezmax, and 67% of LR2/Aframax days booked for Q1 2026 at significantly higher rates than Q4 2025.

• Market expected to remain tight for 2-3 years, with volatility driven by seasonality, geopolitical events, and inventory management by major importers.

• Management expects spot TCEs for Q1 2026 to be lower than currently contracted rates due to ballast days.

• No plans to deleverage significantly; focus remains on maintaining leverage and returning cash to shareholders.