FRO -- Fourth Quarter and Full Year 2024 Results

FRONTLINE PLC REPORTS RESULTS FOR THE FOURTH QUARTER ENDED DECEMBER 31, 2024

Frontline plc (the "Company", "Frontline," "we," "us," or "our"), today reported unaudited results for the three and twelve months ended December 31, 2024:

Highlights

   -- Profit of $66.7 million, or $0.30 per share for the fourth quarter of 
      2024. 
 
   -- Adjusted profit of $45.1 million, or $0.20 per share for the fourth 
      quarter of 2024. 
 
   -- Declared a cash dividend of $0.20 per share for the fourth quarter of 
      2024. 
 
   -- Reported revenues of $425.6 million for the fourth quarter of 2024. 
 
   -- Achieved average daily spot time charter equivalent earnings ("TCEs")1 
      for VLCCs, Suezmax tankers and LR2/Aframax tankers in the fourth quarter 
      of $35,900, $33,300 and $26,100 per day, respectively. 
 
   -- Fully drew down a sale-and-leaseback agreement in an amount of $512.1 
      million to refinance 10 Suezmax tankers, which generated net cash 
      proceeds of $101.0 million in the fourth quarter of 2024. 
 
   -- Sold its oldest Suezmax tanker, built in 2010, for a net sales price of 
      $48.5 million and delivered the vessel to its new owner in October 2024. 
      The transaction generated net cash proceeds of $36.5 million after 
      repayment of existing debt and a gain of $17.9 million in the fourth 
      quarter of 2024. 
 
   -- Repaid the remaining $75.0 million outstanding under the $275.0 million 
      senior unsecured revolving credit facility with an affiliate of Hemen 
      Holding Limited, the Company's largest shareholder ("Hemen") in the 
      fourth quarter of 2024. 
 
   -- Entered into three senior secured credit facilities for a total amount of 
      up to $239.0 million to refinance outstanding debt on three VLCCs and one 
      Suezmax tanker and, in addition, to provide revolving credit capacity in 
      a total amount of up to $91.9 million. 

Lars H. Barstad, Chief Executive Officer of Frontline Management AS, commented:

"The fourth quarter of 2024 came in unusually soft compared to previous years. Global oil demand was up marginally as the year came to an end, but global seaborne exports slowed in the fourth quarter. During the quarter we saw positive developments in the enforcement of sanctions against Iran and Russia in particular, but we could not escape the fact that these two countries represent a material part of the supply to Asia, at cost to demand for the vessels Frontline operates. For 2025 we have already seen broader sanctions with a wider scope, at the same time as key importers of exposed crude are diversifying away from the mentioned suppliers. Compliant fleet growth for the asset classes we deploy peaked a few years back, making the outlook very constructive as Frontline sail into the new year with our cost-efficient operations and modern fleet."

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

"In February 2025 we entered into three senior secured credit facilities for a total amount of up to $239.0 million to refinance three existing term loan facilities, with total balloon payments of $142.0 million maturing during 2025, leaving the Company with no debt maturities until the end of 2026 and, in addition, to provide revolving credit capacity in a total amount of up to $91.9 million. Through these new financings we further strengthen our strong liquidity and reduce our borrowing costs and cash break even rates. We continue to focus on maintaining our competitive cost structure, breakeven levels and solid balance sheet to ensure that we are well positioned to generate significant cash flow and create value for our shareholders."

Average daily TCEs and estimated cash breakeven rates

 
                                                                                     Estimated 
                                                                                      average 
                                                                                       daily 
                                                                                       cash 
                                                               Spot TCE              breakeven 
                                                              currently              rates for 
($ per day)                      Spot TCE                     contracted  % Covered    2025 
------------                                                  ----------  ---------  --------- 
                        Q4      Q3      Q2      Q1 
               2024    2024    2024    2024    2024    2023          Q1 2025           2025 
VLCC          43,400  35,900  39,600  49,600  48,100  50,300      43,700        80%     29,200 
Suezmax       41,400  33,300  39,900  45,600  45,800  52,600      35,400        77%     24,000 
LR2 / 
 Aframax      42,300  26,100  36,000  53,100  54,300  46,800      29,700        64%     22,200 
              ------  ------  ------  ------  ------  ------  ----------  ---------  --------- 
 

We expect the spot TCEs for the full first quarter of 2025 to be lower than the spot TCEs currently contracted, due to the impact of ballast days during the first quarter of 2025. See Appendix 1 for further details.

The Board of Directors

Frontline plc

Limassol, Cyprus

February 27, 2025

Ola Lorentzon - Chairman and Director

John Fredriksen - Director

James O'Shaughnessy - Director

Steen Jakobsen - Director

Cato Stonex - Director

Ørjan Svanevik - Director

Dr. Maria Papakokkinou - Director

Questions should be directed to:

Lars H. Barstad: Chief Executive Officer, Frontline Management AS

+47 23 11 40 00

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

+47 23 11 40 00

Forward-Looking Statements

Matters discussed in this report may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements, which include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

Frontline plc and its subsidiaries, or the Company, desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. This report and any other written or oral statements made by us or on our behalf may include forward-looking statements, which reflect our current views with respect to future events and financial performance and are not intended to give any assurance as to future results. When used in this document, the words "believe," "anticipate," "intend," "estimate," "forecast," "project," "plan," "potential," "will," "may," "should," "expect" and similar expressions, terms or phrases may identify forward-looking statements.

The forward-looking statements in this report are based upon various assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

In addition to these important factors and matters discussed elsewhere herein, important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include:

   -- the strength of world economies; 
 
   -- fluctuations in currencies and interest rates, including inflationary 
      pressures and central bank policies intended to combat overall inflation 
      and rising interest rates and foreign exchange rates; 
 
   -- the impact that any discontinuance, modification or other reform or the 
      establishment of alternative reference rates have on the Company's 
      floating interest rate debt instruments; 
 
   -- general market conditions, including fluctuations in charter hire rates 
      and vessel values; 
 
   -- changes in the supply and demand for vessels comparable to ours and the 
      number of newbuildings under construction; 
 
   -- the highly cyclical nature of the industry that we operate in; 
 
   -- the loss of a large customer or significant business relationship; 
 
   -- changes in worldwide oil production and consumption and storage; 
 
   -- changes in the Company's operating expenses, including bunker prices, dry 
      docking, crew costs and insurance costs; 
 
   -- planned, pending or recent acquisitions, business strategy and expected 
      capital spending or operating expenses, including dry docking, surveys 
      and upgrades; 
 
   -- risks associated with any future vessel construction; 
 
   -- our expectations regarding the availability of vessel acquisitions and 
      our ability to complete vessel acquisition transactions as planned; 
 
   -- our ability to successfully compete for and enter into new time charters 
      or other employment arrangements for our existing vessels after our 
      current time charters expire and our ability to earn income in the spot 
      market; 
 
   -- availability of financing and refinancing, our ability to obtain 
      financing and comply with the restrictions and other covenants in our 
      financing arrangements; 
 
   -- availability of skilled crew members and other employees and the related 
      labor costs; 
 
   -- work stoppages or other labor disruptions by our employees or the 

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