FRO – Fourth Quarter and Full Year 2023 Results

FRONTLINE PLC REPORTS RESULTS FOR THE FOURTH QUARTER ENDED DECEMBER 31, 2023

Frontline plc (the “Company” or “Frontline”), today reported unaudited results for the three and twelve months ended December 31, 2023:

Highlights

Profit of $118.4 million, or $0.53 per share for the fourth quarter of 2023.
Adjusted profit of $102.2 million, or $0.46 per share for the fourth quarter of 2023.
Declared a cash dividend of $0.37 per share for the fourth quarter of 2023.
Reported revenues of $415.0 million for the fourth quarter of 2023.
Took delivery of 11 VLCCs from Euronav NV (“Euronav”) as part of the acquisition of 24 VLCCs (“the Acquisition”) in the fourth quarter of 2023 and delivery of a further 12 vessels in January 2024 with the last VLCC expected to be delivered within the first quarter of 2024.
Entered into agreements to sell its five oldest VLCCs, built in 2009 and 2010 and one of its oldest Suezmax tankers, built in 2010, for an aggregate net sales price of $335.0 million in January 2024. After repayment of existing debt on the vessels the transactions are expected to generate net cash proceeds of approximately $238.0 million.
In the process of refinancing eight Suezmax tankers and 16 LR2 tankers expected to generate net cash proceeds of approximately $408.0 million.
The net cash proceeds of approximately $646.0 million expected to be generated from sale and refinancing of vessels, will enable Frontline 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.

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

“Frontline delivered its strongest full year result in fifteen years, despite muted markets in the fourth quarter. The year has been exceptional for the tanker industry and the asset classes we deploy, however, it’s the Suezmax, Aframax and product markets that have offered volatility. During the fourth quarter, Frontline started taking delivery of the 24 modern VLCCs acquired from Euronav, and it’s a testament to Frontline’s scalable business platform that within a few months Frontline has doubled its exposure in the VLCC market, by increasing its overall earnings capacity by more than one-third, with minimal impact on its operational setup. The continuous disruption in the Red Sea has caused West / East trading lanes to widen, which we believe benefits the larger vessel classes, offering economies of scale as oil and products move around the Cape of Good Hope.”  

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

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2023
Q4 2023
Q3 2023
Q2 2023
Q1 2023
2022