Frontline (FRO) Pareto Energy Conference 2024 Presentation summary

Strategic positioning and fleet overview

• Operates one of the world's largest and youngest tanker fleets, with 82 vessels and an average age of 6 years.

• Maintains a strong balance sheet, competitive cost structure, and high liquidity.

• Emphasizes energy efficiency, with 99% ECO vessels and 56% fitted with scrubbers.

• Proven access to capital markets and a history of significant shareholder returns, with ~$7.3 billion in dividends since 2001.

• Transparent operations and high regulatory compliance standards.

Financial and operational highlights Q2 2024

• Reported Q2 2024 profit of $187.6 million ($0.84/share) and adjusted profit of $138.2 million ($0.62/share).

• Revenues reached $556.0 million, with a declared cash dividend of $0.62 per share.

• Sold an older Suezmax tanker for $48.5 million, generating ~$36.5 million in net cash.

• Repaid $395 million in loans and secured a $512.1 million sale-and-leaseback commitment for refinancing.

• Ongoing refinancing and divestment strategy expected to free up ~$548 million in net cash.

Fleet efficiency and cash generation

• Fleet average cash breakeven rate is $25,700/day for the next 12 months, with Q2 opex at $7,600/day.

• Annual earnings days total ~30,000, with significant free cash flow potential if spot rates rise.

• A 30% increase in spot market rates could double cash generation.