Group 1 - The presentation of Frontline plc's first quarter 2025 results is scheduled for a webcast/conference call on May 23, 2025, at 15:00 CET [1] - The information is subject to the disclosure requirements under the Norwegian Securities Trading Act [1]

Core Viewpoint - Frontline plc reported its first-quarter results for 2025, indicating stable performance amidst economic and political uncertainties, with improvements in fleet utilization and a strong liquidity position [1][2][3]. Financial Performance - The company achieved a profit of $33.3 million, or $0.15 per share, with an adjusted profit of $40.4 million, or $0.18 per share for Q1 2025 [5]. - Revenues for the first quarter were reported at $427.9 million [5]. - A cash dividend of $0.18 per share was declared for the first quarter of 2025 [5]. Fleet and Operations - Average daily spot time charter equivalent (TCE) earnings for VLCCs, Suezmax tankers, and LR2/Aframax tankers were $37,200, $31,200, and $22,300 respectively in Q1 2025 [5]. - Fleet growth remains slow, with ordering stalling, which supports the long-term fundamentals for tankers [2]. Liquidity and Financing - The company has strengthened its liquidity through refinancings in 2025, with no significant debt maturities until 2030 [3]. - Entered into three senior secured credit facilities in February 2025 for up to $239 million and a senior secured term loan facility in April 2025 for up to $1,286.5 million [5]. Market Outlook - Spot TCEs for the full second quarter of 2025 are expected to be lower than currently contracted due to ballast days [4]. - Utilization on larger ships has improved, and there are healthy developments in activity across segments due to pressure on sanctioned trades [2].

Core Viewpoint - Frontline Plc (FRO) is expected to report its first-quarter 2025 results on May 23, with earnings per share estimated at 18 cents, remaining stable over the past 60 days [1][2]. Group 1: Earnings Estimates and Trends - The Zacks Consensus Estimate for FRO's earnings per share for Q1 2025 is 0.18, with no changes over the past 60 days [2]. - The earnings estimates for subsequent quarters are 0.49 for Q2, 2.09 for E1, and 3.19 for F2, with a notable decrease of 12.50% for Q2 compared to 30 days ago [2]. - FRO has missed the Zacks Consensus Estimate in three of the last four quarters, with an average miss of 10% [2]. Group 2: Factors Influencing Performance - Supply-chain disruptions and escalated voyage operating costs are expected to negatively impact FRO's bottom-line performance for the first quarter [3]. - Geopolitical risks are anticipated to pose operational challenges that may hurt results [3]. - Low spot tanker rates are also expected to be reflected in the first-quarter results, with management likely to provide updates on the current tariff-related scenario [4]. Group 3: Positive Aspects - Continued fleet expansion initiatives are likely to have positively influenced the company's performance [5]. - Increased freight costs due to reduced container availability from Red Sea tensions are expected to aid FRO's quarterly performance, particularly in services to East Mediterranean and Israeli ports [5]. - Revenues and carried volumes are anticipated to surge due to disruptions, with lower capacity expected to boost earnings in the upcoming quarter [5]. Group 4: Zacks Model Insights - The Zacks model does not predict an earnings beat for FRO this time, as the Earnings ESP is 0.00%, indicating the Most Accurate Estimate aligns with the Zacks Consensus Estimate [6]. - FRO currently holds a Zacks Rank of 4 (Sell), suggesting a less favorable outlook compared to higher-ranked stocks [7].

Frontline plc.’s preliminary first quarter 2025 results will be released on Friday May 23, 2025, and a webcast and conference call will be held at 3:00 p.m. CET (9:00 a.m. U.S. Eastern Time). The results presentation will be available for download from the Investor Relations section at www.frontlineplc.cy ahead of the conference call. In order to attend the conference call you may do one of the following: a. Webcast Go to the Investor Relations section at www.frontlineplc.cy and follow the “Webcast” link, o ...

Core Viewpoint - OPEC+ plans to increase oil production, negatively impacting oil producers like ExxonMobil and ConocoPhillips, while benefiting oil transport companies like Frontline due to increased demand for shipping services as oil prices fall [1][3][6]. Group 1: Impact on Oil Producers - ExxonMobil and ConocoPhillips stocks are down 2.5% and 3.6% respectively following OPEC+'s announcement [2]. - Brent crude prices have decreased by 28% over the past year, contributing to the negative sentiment around oil producers [2]. - The increase in oil supply by OPEC+ is expected to lead to further price declines, which will negatively affect profits for ExxonMobil and ConocoPhillips [4][3]. Group 2: Impact on Oil Transport Companies - Frontline's stock is up 3.9% as the demand for oil transport services is expected to rise due to falling oil prices [2][6]. - The company benefits from increased shipping needs as consumers seek to purchase cheaper oil, leading to higher demand for Frontline's services [7]. - Frontline is considered a cheaper investment option with a trailing earnings ratio of 7.7 and a generous dividend yield of 4.7% [8]. Group 3: Long-term Considerations - Despite the current sell-off, long-term investors may consider buying Exxon and ConocoPhillips stocks due to their respectable dividend yields of 3.7% and 3.4% respectively [9]. - Both companies are reasonably priced with trailing profit ratios of 14.1 for Exxon and 11.7 for Conoco, suggesting potential for future growth as demand rebounds [10].

Core Insights - Verizon Frontline has announced Ericsson Enterprise Wireless Solutions as the latest partner to achieve "Verizon Frontline Verified" status, enhancing its offerings for public safety and critical communications [1][2]. Group 1: Partnership and Product Verification - Ericsson Enterprise Wireless Solutions is recognized as a market leader in 4G and 5G Wireless WAN edge solutions, providing secure connectivity for various sectors including public safety [2]. - The "Verizon Frontline Verified" program designates vendors whose products meet rigorous standards for public safety use on the Verizon network, ensuring reliability for first responders [3][4]. - Products like the Cradlepoint R980 router, which supports the Verizon Frontline Network Slice, are now verified, enhancing mission-critical communications capabilities for public safety agencies [2][3]. Group 2: Industry Context and Company Performance - Verizon Frontline is built on over three decades of collaboration with public safety officials, tailored to meet the unique needs of first responders [5]. - Verizon Communications Inc. reported revenues of $134.8 billion in 2024, highlighting its significant market presence and commitment to innovation in connectivity and security [6].

Industry Dynamics - The tanker industry is highly cyclical and volatile, with revenues and earnings significantly affected by changes in supply and demand for tanker capacity and oil products [31]. - The ongoing war in Ukraine and conflicts in Israel and Gaza have disrupted energy production and trade patterns, impacting energy demand and costs [31]. - A shift in consumer demand from oil to alternative energy sources could materially impact the demand for the company's vessels [38]. - The International Energy Agency forecasts "peak oil" extraction rates to occur in the late 2020s, which may affect future oil demand and shipping patterns [39]. - The demand for oil tankers is primarily driven by economies of industrial countries and competition from alternative energy sources, making it sensitive to global economic conditions [34]. - Political instability and public health threats can adversely affect the tanker industry, impacting the company's business [69]. Operational Risks - The company relies on information systems for navigation and operations, and any significant disruption could adversely affect business and operational efficiency [44]. - The company faces risks related to regulatory changes, environmental concerns, and technological advancements that could impact operational costs and vessel values [41]. - Cybersecurity threats to the company's information systems are evolving and increasingly complex, potentially leading to significant operational disruptions [47]. - Significant capital may be required to protect against and remedy security breaches, which could adversely affect the company's financial condition [48]. - The company must maintain compliance with complex laws and regulations, which may require costly operational changes and affect vessel resale values [90][91]. Financial Performance - An oversupply of tanker capacity may lead to reductions in charter rates, vessel values, and profitability, adversely affecting financial performance [37]. - Economic conditions, including high inflation and interest rates, could impede operations and negatively impact the company's ability to pay dividends [60]. - Increased trade protectionism and tariffs could materially impact the charterers' business, adversely affecting the company's results of operations [64]. - The U.S. trade war with China may impose significant fees on vessels owned by Chinese shipping companies, potentially affecting the company's operations [66]. - The company may incur financial penalties or additional taxes if it fails to maintain sufficient economic substance in Cyprus or other jurisdictions, adversely affecting its business and financial condition [127]. - The company cannot guarantee the ability to obtain additional financing on acceptable terms, which may hinder growth and negatively impact cash flows and results of operations [129]. Compliance and Regulatory Environment - Compliance with international safety and environmental regulations is costly and may reduce net cash flows and profitability [84][93]. - The company has incurred increased costs to comply with revised environmental standards, which could adversely affect its financial condition [93]. - The implementation of a Russian petroleum "price cap policy" could create additional operational risks, including potential fines and penalties for non-compliance [75]. - The company is subject to potential changes in tax regimes, including the OECD's two-pillar project, which could increase tax compliance burdens and affect financial results [157]. - The company is subject to the risk of being classified as a "passive foreign investment company" (PFIC), which could have adverse tax consequences for U.S. shareholders [146]. Fleet and Asset Management - The company operates various types of vessels, including VLCCs (200,000-320,000 dwt), Suezmax (120,000-170,000 dwt), and LR2/Aframax tankers (110,000-115,000 dwt) [23]. - The company operates a modern fleet, with all but one vessel being ECO vessels and an average age of 6.6 years, positioning it well to meet environmental regulations [201]. - As of December 31, 2024, the fleet consisted of 81 vessels with a total capacity of approximately 17.8 million DWT [190]. - The average age of the company's fleet is approximately 6.6 years as of December 31, 2024, which may lead to increased operating costs as vessels age [113]. - The company may incur losses when selling vessels if market values decline, potentially leading to impairment charges [106]. Market Conditions - The tanker market has historically been volatile, and future spot market rates may decline or remain depressed, affecting the company's ability to operate profitably [100]. - The company is dependent on the spot market, and a decrease in spot charter rates may incentivize charterers to default on their charters [98]. - Changes in fuel prices significantly impact the company's profitability, especially for vessels on voyage charters [104]. - As of December 31, 2024, 75 out of 81 vessels owned by the company were employed in the spot market or on short-term charters, exposing the company to fluctuations in spot market charter rates [98]. Strategic Initiatives - The company emphasizes a strategy of outsourcing management and crewing services to optimize operational performance and cost levels [198]. - The Company acquired six ECO-type VLCC newbuilding contracts for a total purchase price of $565.8 million, with four delivered in 2022 and two in January 2023 [176]. - The Company entered into a Framework Agreement to purchase 24 VLCCs for an aggregate price of $2,350.0 million, with 11 vessels delivered in December 2023 for $1,112.2 million [185][186]. - The Company sold 13,664,613 shares in CMB.TECH for $251.8 million, which was used to partly finance the Acquisition [188]. Human Resources - The company may face challenges in recruiting suitable employees and crew as it expands its fleet, which could limit growth [115]. - The company employed 85 people across various locations as of December 31, 2024, and relies on third-party ship managers for vessel operations, which could be affected by labor interruptions [139]. - The company may not be able to attract and retain key management personnel, which could negatively impact management effectiveness and operational results [138].

Financial Performance - The company reported a profit of $66.7 million, or $0.30 per share, for the fourth quarter of 2024, compared to a profit of $60.5 million in the previous quarter[4]. - Adjusted profit for the fourth quarter of 2024 was $45.1 million, down from $75.4 million in the previous quarter, primarily due to a decrease in TCE earnings from $292.2 million to $249.4 million[8]. - Reported revenues for the fourth quarter of 2024 were $425.6 million[4]. - The Company reported total revenues and other operating income of $2,162.5 million for the year ended December 31, 2024, compared to $1,826.3 million for the previous year, representing an increase of 18.4%[40]. - The profit for the period in the fourth quarter of 2024 was $118.4 million, a decrease of 0.2% from $118.4 million in the fourth quarter of 2023[40]. - Basic and diluted earnings per share for the year ended December 31, 2024, were $2.23, down from $2.95 in 2023, indicating a decrease of 24.3%[40]. - The Company reported a profit of $495,583 for FY 2024, compared to $656,414 in FY 2023, representing a decline of approximately 24.5%[43]. - Adjusted profit for FY 2024 was $396,642, down from $585,708 in FY 2023, indicating a decrease of about 32.2%[45]. - The adjusted basic and diluted earnings per share for FY 2024 were $1.78, down from $2.63 in FY 2023, a decrease of approximately 32.3%[45]. Cash Flow and Dividends - The company declared a cash dividend of $0.20 per share for the fourth quarter of 2024, with a record date of March 14, 2025[23]. - The company paid dividends totaling $434,115 in FY 2024, down from $638,928 in FY 2023, a reduction of about 32.1%[43]. - Net cash provided by operating activities for Q4 2024 was $167,848, a decrease from $100,494 in Q4 2023[42]. - The company reported cash and cash equivalents of $413.5 million as of December 31, 2024, an increase from $308.3 million as of December 31, 2023, representing a growth of 34.1%[41]. - Cash and cash equivalents at the end of Q4 2024 were $413,532, up from $308,322 at the end of Q4 2023, marking an increase of about 34.1%[42]. Fleet and Operational Metrics - As of December 31, 2024, the company's fleet consisted of 81 vessels with an aggregate capacity of approximately 17.8 million DWT, with an average age of 6.6 years[15]. - The current tanker orderbook for the asset classes owned by the company constitutes 18.4% of the existing global fleet, with most growth attributed to deliveries scheduled in 2026 and 2027[14]. - The number of contracted ballast days at the end of Q4 2024 was 1,116 days for VLCCs, indicating ongoing operational commitments[54]. - Spot days for VLCCs acquired from Euronav totaled 8,518 in Q4 2024, compared to just 184 in FY 2023, indicating enhanced fleet utilization[51]. Debt and Financing - The company entered into three senior secured credit facilities totaling up to $239.0 million to refinance existing debt and provide revolving credit capacity of up to $91.9 million[5]. - The Company entered into a senior secured credit facility of up to $72.3 million with Crédit Agricole in February 2025 to refinance outstanding debt and provide additional revolving credit capacity of up to $25.4 million[28]. - The Company also secured a credit facility of up to $47.0 million with SEB for refinancing debt on a Suezmax tanker, along with a revolving credit capacity of up to $14.9 million[29]. - The Company’s long-term debt as of December 31, 2024, was $3,284.1 million, compared to $3,194.5 million as of December 31, 2023, reflecting an increase of 2.8%[41]. Market and Economic Conditions - Global oil consumption averaged 103.4 million barrels per day in the fourth quarter of 2024, an increase of 1.0 mbpd compared to the same period last year[10]. - The company anticipates continued growth in TCE rates as market conditions improve and operational efficiencies are realized[54]. Time Charter Equivalent (TCE) Performance - Average daily spot TCE earnings for VLCCs, Suezmax tankers, and LR2/Aframax tankers were $35,900, $33,300, and $26,100, respectively, in the fourth quarter of 2024[4]. - Total Time Charter Equivalent (TCE) for FY 2024 was $1,269,031, an increase from $1,170,065 in FY 2023, reflecting a growth of approximately 8.4%[48]. - Total Time Charter Equivalent (TCE) for Q4 2024 was $1,269,031,000, a notable increase from $369,718,000 in Q4 2023, marking a growth of 243%[51]. - Total Spot TCE for Q4 2024 was $1,196,090,000, up from $355,661,000 in Q4 2023, reflecting a year-over-year growth of 236%[51]. - Spot TCE for VLCCs acquired from Euronav in Q4 2024 was $339,888,000, compared to $1,054,000 in FY 2023, indicating a substantial increase in revenue generation[51]. - Spot TCE per day for VLCCs acquired from Euronav in Q4 2024 was $39,900, compared to $5,700 in FY 2023, showcasing improved daily earnings[51]. - Suezmax TCE for Q4 2024 was $8,697,000, up from $0 in FY 2023, reflecting the introduction of new revenue streams[51].

Financial Data and Key Metrics Changes - In Q3 2024, Frontline reported a profit of $60.5 million or $0.27 per share, with adjusted profit at $75.4 million or $0.34 per share, a decrease of $62.8 million from the previous quarter primarily due to lower TCE earnings, which fell from $357.7 million to $292.2 million [8][9] - The average daily earnings for the VLCC fleet were $39,600, Suezmaxes at $39,900, and LR2/Aframax at $36,000 [5][6] - The company has a strong liquidity position with $526 million in cash and cash equivalents, and no significant debt securities until 2027 [9] Business Line Data and Key Metrics Changes - The fleet consists of 41 VLCCs, 22 Suezmax tankers, and 18 LR2 tankers, with an average age of six years and 99% eco vessels [10] - Estimated average cash breakeven rates for the next 12 months are approximately $29,600 per day for VLCCs, $23,400 for Suezmax tankers, and $22,000 for LR2 tankers, leading to a fleet average estimate of about $26,300 per day [10] Market Data and Key Metrics Changes - Global oil supply is increasing, particularly in the Atlantic Basin, while demand growth remains muted, leading to a potential oversupplied market in 2025 [16][19] - The share of sanctioned oil in the Asian demand reached 25% in Q3 2024, indicating increased exposure of the tanker market to changes in sanctions and policies [21] Company Strategy and Development Direction - Frontline aims to maintain a modern fleet and strong balance sheet while navigating a mixed market narrative influenced by geopolitical risks and changing oil flows [16][26] - The company does not view the current order book growth as a significant threat, particularly for VLCCs, as the fleet continues to age with minimal recycling [24][28] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the geopolitical landscape, particularly regarding sanctions on Russia and Iran, and their potential impact on oil flows and tanker demand [16][27] - The company remains optimistic about the potential for cash generation, with a significant upside if spot market rates increase [13][27] Other Important Information - The current tanker fleet is the oldest in over two decades, which may affect future supply dynamics [29] - The market is experiencing a mix of challenges, including lower asset values and a saturated market for older vessels [55] Q&A Session Summary Question: Thoughts on capital structure and deleveraging - Management is comfortable with current debt levels, believing long-term value remains strong despite market volatility [32] Question: Geopolitical impacts on the market - A resolution in Ukraine could lead to a quick reversal of sanctions, impacting oil flows significantly [35] Question: VLCC market developments - The VLCC market is currently range-bound, with a need for more cargo to push rates higher [42][45] Question: Demand outlook for 2025 - Management is cautiously optimistic, noting that adverse events could significantly strengthen the tanker market [49] Question: Asset values in the sale and purchase markets - There is a noted softening in asset values due to reduced appetite from sanctioned trade and market saturation [54] Question: Seasonal demand expectations - Management noted that Q1 may become the new Q4 in terms of demand, with political events being more influential than seasonal trends [71]

Financial Performance - The company reported a profit of $605 million, or $027 per basic and diluted share for Q3 2024[11] - Adjusted profit was $754 million, or $034 per basic and diluted share for Q3 2024[11] - Revenues for Q3 2024 were reported as $4903 million[11] - A cash dividend of $034 per share was declared for Q3 2024[11] Fleet and Operations - The company sold its oldest Suezmax tanker (built in 2010) for a net sales price of $485 million, generating $365 million in net cash proceeds after debt repayment[11] - A sale-and-leaseback agreement was entered into for up to $5121 million to refinance 10 Suezmax tankers, expected to generate approximately $1010 million in net cash proceeds in Q4 2024[11] - The fleet's average cash breakeven rate for the next 12 months is $26300, including dry dock costs for five VLCCs and two Suezmax tankers[24] - Q3 2024 fleet average opex excluding drydock was $7900[24] Market Conditions and Outlook - Q4 2024 spot TCE (time charter equivalent) currently contracted for VLCC at $39600 (77% done), Suezmax at $39900 (70% done), and LR2 / Aframax at $36000 (60% done)[11] - Approximately 17% of shipped oil is sanctioned, representing about 6% of global consumption[33] - The orderbook for tankers has stopped growing, with containers taking center stage[33]