Frontline Ltd. (the “Company” or “Frontline”), today released unaudited results for the three and nine months ended September 30, 2020:

Strong points

• Net earnings of $ 57.1 million, or $ 0.29 per diluted share for the third quarter of 2020
• Adjusted net income of $ 56.4 million, or $ 0.29 per diluted share for the third quarter of 2020
• Total reported operating revenue of $ 247.4 million for the third quarter of 2020
• The spot TCEs reported for VLCCs, Suezmax tankers and LR2 tankers in the third quarter of 2020 were $ 49,200, $ 25,100 and $ 12,800 per day, respectively.
• For the fourth quarter of 2020, we estimate the spot TCE on a load-to-discharge basis of $ 22,600 contracted for 74% of vessel days for VLCCs, $ 12,600 for 61% of vessel days for tankers Suezmax and $ 13,800 for 65% of ship days. for LR2 tankers. We expect spot TCEs for the whole of Q4 2020 to be lower than the TCEs currently contracted, due to the impact of ballast days at the end of Q4 as well as current freight rates
• Entered into three senior secured term loan facilities in November 2020 for a maximum amount of $ 250.7 million, $ 100.8 million and $ 133.7 million, respectively, to refinance two loan facilities existing term maturing in the second quarter of 2021 and to partially finance the LR2 tankers under construction
• We sold our 71.38% stake in the ship management company SeaTeam Management Pte Ltd.

Lars H. Barstad, Interim Managing Director of Frontline Management AS, said:

“Frontline’s strong third quarter 2020 results came in the midst of an extremely volatile quarter for the industry. Demand for oil slowly began to recover in the third quarter of 2020, and record levels of global oil inventories gradually declined. While demand remains significantly lower than before the pandemic, it is expected to rebound in 2021. Demand growth coupled with the potential to reverse OPEC + production cuts would quickly boost demand for tankers. Uncertainties persist over the impact of the newly imposed lockdowns, particularly in the Western Hemisphere, as well as the timing of the potential reversal of OPEC + production cuts. In the longer term, the fundamentals of the tanker fleet remain favorable with the lowest order book for 20 years, all asset classes combined. Frontline is very confident in the long term prospects due to its modern and fuel efficient fleet, profitable organization and strong financial position, and we expect to achieve increasingly strong performance as the global recovery continues. continues. “

Inger M. Klemp, CFO of Frontline Management AS, added:

“As a result of the recently completed refinancing of two term loan facilities with total lump sum payments of $ 324.4 million due in April 2021 and June 2021, Frontline has no significant maturities until 2023. The company’s construction program is also fully funded with a new term loan facility in an amount of up to $ 133.7 million. Importantly, our recent financings have been made on attractive terms, maintaining our competitive cost structure and strengthening Frontline’s strong position within the lending community.

Average Daily Time Charter Equivalents (“ETC”)¹

The estimated average daily break-even rates are the daily rates of TCE that vessels must earn in order to cover operating expenses, including dry docks, loan repayments, interest on loans, bareboat rental, time rental and net general and administrative expenses for the remainder of the year.

Point estimates are provided on a load-to-unload basis, whereby the company accrues revenue over time on a pro rata basis from the start of loading the cargo until the completion of the unloading of the cargo. Rates shown apply daily until the last contractual cargo discharge for each vessel during the quarter. The actual rates to be earned in Q4 2020 will depend on how many extra days we can contract and, more importantly, how many extra days each ship is loaded. Thus, a high number of ballast days at the end of the quarter will limit the amount of additional revenue to be reserved on a load-discharge basis. Ballast days are days when a ship sails without cargo and therefore unable to recognize revenue. In addition, when a vessel is still not under contract at the end of the quarter, the Company will recognize certain costs during the non-contractual days until the end of the period, whereas if a vessel is under contract, certain costs can be carried over and counted over the discharge period.

Reporting of income on a load-to-unload basis results in the recognition of income over fewer days, but at a higher rate for those days. Over the course of a trip, there is no difference in the total revenue and costs to be accrued.

When expressing the TCE per day for the third quarter of 2020, the Company uses the total number of days available for the quarter and not just the number of vessel load days.

Board of directors
Frontline Ltd.
Hamilton, Bermuda
November 24, 2020

Questions should be directed to:

Lars H. Barstad: Acting Managing Director, Frontline Management AS
+47 23 11 40 37

Inger M. Klemp: Chief Financial Officer, Frontline Management AS
+47 23 11 40 76

Forward-looking statements

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

Frontline Ltd. and its subsidiaries, or the Company, wish to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and include this caveat in connection with such 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 regarding future events and financial performance and are not intended to provide assurance as to future results. When used in this document, the words “believe”, “anticipate”, “intend”, “estimate”, “anticipate”, “project”, “plan”, “? , “” expect “and similar expressions, words or phrases may identify forward-looking statements.

The forward-looking statements in this report are based on various assumptions, including, but not limited to, management’s review of historical operating trends, data in our records and data available from third parties. Although we believed 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 achieve those expectations, beliefs or projections. We assume 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 issues discussed elsewhere in this document, the significant factors which, in our opinion, could cause actual results to differ materially from those discussed in forward-looking statements include the strength of global economies, fluctuations currencies and interest rates, general market conditions including fluctuations in charter rental rates and vessel values, changes in supply and demand for vessels comparable to ours, changes in worldwide oil production, consumption and storage, changes in the Company’s operating expenses, including bunker prices, drydocking and insurance costs, the vessel market of the Company, the availability of financing and refinancing, our ability to obtain financing and to meet the restrictions and other commitments of our agreements funding, availability of skilled workers and associated labor costs, compliance with government, tax, environmental and safety regulations, any non-compliance with the United States Corrupt Practices Act of 1977 (FCPA) or other applicable regulations relating to corruption, general economic and oil industry conditions, the effects of new products and new technologies in our industry, the inability of counterparties to fully perform their contracts with us , our reliance on key personnel, the adequacy of insurance coverage, our ability to obtain indemnities from clients, changes in laws, treaties or regulations, the volatility of the price of our common shares ; our incorporation under the laws of Bermuda and the various rights of redress that may be available with respect to other countries, including the United States, changes in government rules and regulations or actions taken by regulatory authorities, potential liability for ongoing or future litigation, and international political conditions, potential disruption of shipping routes due to accidents, political events or terrorist acts, and other significant factors described from time to time in reports filed by the Company with the Securities and Exchange Commission or the Commission.

We caution readers of this report not to place undue reliance on these forward-looking statements, which speak only as of their dates. These forward-looking statements are not guarantees of our future performance, and actual results and future developments may differ materially from those projected in the forward-looking statements.

This information is subject to disclosure requirements in accordance with Section 5-12 of the Norwegian Securities Law.

¹ This press release describes Time Charter Equivalent earnings and associated daily amounts, which are not measures prepared in accordance with US GAAP (“non-GAAP”). See Appendix 1 for a full description of the measures and the reconciliation to the nearest GAAP measure.