6-K 1 d11455567_6-k.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO
RULE 13A-16 OR 15D-16 UNDER THE SECURITIES
EXCHANGE ACT OF 1934

For the month of August 2024

Commission File Number:  001-16601

FRONTLINE PLC
(Translation of registrant's name into English)

8, Kennedy Street, Iris House, Off. 740B, 3106 Limmasol, Cyprus
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F [ X ]     Form 40-F [   ]


INFORMATION CONTAINED IN THIS FORM 6-K REPORT
 
Attached hereto as Exhibit 1 is a copy of the press release issued by Frontline plc (the “Company”) on August 30, 2024, reporting the Company’s results for the second quarter and six months ended June 30, 2024.





SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


 
 
FRONTLINE PLC
(registrant)
  
 
 
 
  
Dated: August 30, 2024
 
By:
 /s/ Inger M. Klemp
  
 
 
 
Name: Inger M. Klemp
  
 
 
 
Title: Principal Financial Officer
  
 
 
 
  
 
 
 
  





EXHIBIT 1












INTERIM FINANCIAL INFORMATION



FRONTLINE PLC







SECOND QUARTER 2024

30 August 2024

FRONTLINE PLC REPORTS RESULTS FOR THE SECOND QUARTER ENDED JUNE 30, 2024

Frontline plc (the “Company” or “Frontline”), today reported unaudited results for the six months ended June 30, 2024:


Highlights


 •
Profit of $187.6 million, or $0.84 per share for the second quarter of 2024.

•
Adjusted profit of $138.2 million, or $0.62 per share for the second quarter of 2024.

•
Declared a cash dividend of $0.62 per share for the second quarter of 2024.

•
Reported revenues of $556.0 million for the second quarter of 2024.

•
Achieved average daily spot time charter equivalent earnings ("TCEs")1 for VLCCs, Suezmax tankers and LR2/Aframax tankers in the second quarter of $49,600, $45,600 and $53,100 per day, respectively.

•
Entered into an agreement to sell its oldest Suezmax tanker built in 2010, for a net sales price of $48.5 million. After repayment of existing debt, the transaction is expected to generate net cash proceeds of approximately $36.5 million.

•
Entered into a senior secured term loan facility in an amount of up to $606.7 million to refinance eight Suezmax tankers and eight LR2 tankers, which generated net cash proceeds of approximately $275.0 million.

•
Repaid an aggregate of $395.0 million under both the shareholder loan with Hemen Holding Limited (“Hemen”), our largest shareholder, and the $275.0 million senior unsecured revolving credit facility with an affiliate of Hemen in the second and third quarters of 2024.

•
Secured a commitment for a sale-and-leaseback agreement in an amount of up to $512.1 million to refinance 10 Suezmax tankers, which is subject to execution of final transaction documents to both parties' satisfaction. The refinancing is expected to generate net cash proceeds of approximately $101.0 million in the fourth quarter of 2024, which is expected to be partly used to repay the remaining $75.0 million drawn under the $275.0 million senior unsecured revolving credit facility with an affiliate of Hemen.


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

“The second quarter of 2024 was very much in line with first quarter. Markets carried on at the same pace with positive volatility in an increasingly complicated geo-political landscape. Frontline continued optimizing its position by divesting older assets, consolidating our financials and executing on our strategy of efficiently running one of the largest modern fleets in the tanker market to enhance shareholder returns. Seasonality has a big effect on tanker markets, and as most of the global population lives in the northern hemisphere, the summer is the soft period. Historically, refinery utilization increases from here, as the world begins to prepare for winter and volatility in the tanker markets resumes.”


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



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

“In the second and third quarters of 2024 we completed our strategy of freeing up capital by re-leveraging part of the existing fleet and selling older non-Eco vessels enabling us to repay an aggregate of $395.0 million, which was drawn under the Hemen shareholder loan and our $275.0 million senior unsecured revolving credit facility with an affiliate of Hemen to partly finance the acquisition of the 24 VLCCs from Euronav NV. In the third quarter, we further secured a commitment for a sale-and-leaseback agreement to refinance 10 Suezmax tankers. The refinancing is expected to generate net cash proceeds of approximately $101.0 million in the fourth quarter of 2024, which will enable us to repay the remaining $75.0 million drawn under our $275.0 million senior unsecured revolving credit facility with an affiliate of Hemen.”

Average daily TCEs and estimated cash breakeven rates
($ per day)
  
Spot TCE
Spot TCE currently contracted
% Covered
Estimated average daily cash breakeven rates for the next 12 months
 
2024
Q2 2024
Q1 2024
Q3 2024
  
VLCC
48,800
49,600
48,100
47,400
79%
29,600
Suezmax
45,700
45,600
45,800
41,900
85%
22,300
LR2 / Aframax
53,700
53,100
54,300
50,100
65%
21,200

We expect the spot TCEs for the full third quarter of 2024 to be lower than the spot TCE currently contracted, due to the impact of ballast days at the end of the third quarter of 2024. The number of ballast days at the end of the second quarter of 2024 was 1,043 days for VLCCs, 306 days for Suezmax tankers and 147 days for LR2/Aframax tankers.

Second Quarter 2024 Results

The Company reported profit of $187.6 million for the second quarter ended June 30, 2024, compared with profit of $180.8 million in the previous quarter. The adjusted profit2 was $138.2 million for the second quarter of 2024 compared with adjusted profit of $137.9 million in the previous quarter. The adjustments in the second quarter of 2024 consist of a $51.5 million gain on the sale of vessels, a $2.1 million gain on marketable securities, $0.4 million debt extinguishment gains, $1.0 million relating to dividends received, a $2.1 million share of losses of associated companies and a $3.4 million unrealized loss on derivatives. The adjusted profit in the second quarter of 2024 was comparable to the first quarter of 2024 as the decrease in our TCE earnings from $369.7 million in the previous quarter to $357.7 million in the current quarter as a result of the disposal of two VLCCs and two Suezmax tankers was offset by a decrease in ship operating expenses, administrative expenses, depreciation and finance expense, as well as an increase in interest income.


2 This press release describes adjusted profit and related per share amounts, which are not measures prepared in accordance with IFRS (“non-GAAP”). See Appendix 1 for a reconciliation to the nearest IFRS measure.



Tanker Market Update

Global oil consumption, as reported by the Energy Information Administration (“EIA”), averaged 102.8 million barrels per day (“mbpd”) in the second quarter of 2024, 1.0 mbpd higher than the previous quarter. Looking ahead, demand is projected to accelerate in the second half of the year, potentially reaching 104.9 mbpd in December 2024.

Oil supply remained stable in the second quarter of 2024, averaging 102.1 mbpd. The Organization of the Petroleum Exporting Countries’ (“OPEC”) supply cut strategy remains in effect, resulting in an average production decrease of 0.6 mbpd compared to the second quarter of 2023. We continue to observe the trend where countries outside of OPEC are increasing their production. Compared to the same quarter last year non-OPEC countries increased their production with 1.2 mbpd. Looking one year ahead, the EIA anticipates additional non-OPEC production growth of 1.5 mbpd, potentially reaching an output of 71.7 mbpd.

However, the crude oil markets are seeing concerning developments. According to industry sources and based on the tracking of oil movements, the volume of oil exported from sanctioned countries has increased in the recent years, now amounting to 18.0% of all waterborne crude and condensate, estimated to be around 41.0 mbpd. Russia makes up a large portion of this and as EU and G7 sanctions continue to tighten, the transportation of Russian oil and products appears to attract a growing number of non-compliant vessels often referred to as the ‘grey fleet’. With such a large part of the trade employing questionable actors, an approximately 6% of the global VLCC, Suezmax and Aframax tanker fleet is reported to be sanctioned by the U.S. Office of Foreign Asset Control (OFAC). The average age of the global tanker fleet continues to rise with 13.0% of the above-mentioned asset classes over 20 years of age. This generation of tonnage are not normally used for oil transportation by compliant charterers and owners. The International Maritime Organization (IMO) has stated a clear regulatory path to reduce the industry’s carbon footprint with 20 to 30% by 2030. In addition, the UN organization’s commitment to the safety and security of shipping has placed increasing scrutiny on vessel owners. We believe it will be challenging to meet these ambitious goals since the environmental credentials of a tanker built prior to 2004 will not change without significant and potentially prohibitive investment.

The overall tanker order book for the asset classes that Frontline owns is now 15.3% of the existing global fleet, with 54, 94, and 147 vessels on order for VLCCs, Suezmax tankers and LR2 tankers, respectively. According to industry sources, only one VLCC is expected for delivery in the remainder of 2024 and five are expected to be delivered in 2025, thus increasing optimism for this asset class in particular. The growth in the order books is predominantly for deliveries scheduled in 2026 and 2027 and is not expected to affect the overall outlook of the tanker market in the near term due to the general age profile of the existing fleet.



The Fleet

As of June 30, 2024, the Company’s fleet consisted of 82 vessels owned by the Company (41 VLCCs, 23 Suezmax tankers, 18 LR2/Aframax tankers), with an aggregate capacity of approximately 17.9 million DWT. As of June 30, 2024, 99% of the Company's fleet were Eco vessels and 56% were scrubber-fitted vessels with a total average age of 6.2 years, making it one of the youngest and most energy-efficient fleets in the industry.

In January 2024, the Company announced that it has entered into an agreement to sell its five oldest VLCCs, built in 2009 and 2010, for an aggregate net sale price of $290.0 million. Three of the vessels were delivered to the new owner during the first quarter of 2024, and the two remaining vessels were delivered in the second quarter of 2024 (one of which was classified as held for sale as of March 31, 2024). After repayment of existing debt on the five vessels, the transaction generated net cash proceeds of approximately $208.0 million. The Company recorded a gain of $42.7 million in the first quarter of 2024 in relation to the three vessels delivered in the period and recorded a gain of $25.9 million in the second quarter of 2024 in relation to the delivery of the remaining two vessels.

In January 2024, the Company entered into an agreement to sell one of its oldest Suezmax tankers, built in 2010, for a net sale price of $45.0 million. The vessel was delivered to the new owner during the second quarter of 2024. After repayment of existing debt on the vessel, the transaction generated net cash proceeds of approximately $32.0 million, and the Company recorded a gain of $11.8 million in the second quarter of 2024.

In March 2024, the Company entered into an agreement to sell another one of its oldest Suezmax tankers, built in 2010, for a net sale price of $46.9 million. The vessel was delivered to the new owner during the second quarter of 2024. After repayment of existing debt on the vessel, the transaction generated net cash proceeds of approximately $34.0 million, and the Company recorded a gain of $13.8 million in the second quarter of 2024.

In June 2024, the Company entered into an agreement to sell its oldest Suezmax tanker, built in 2010, for a net sale price of $48.5 million. The vessel is expected to be delivered to the new owner during the fourth quarter of 2024. After repayment of existing debt on the vessel, the transaction is expected to generate net cash proceeds of approximately $36.5 million, and the Company expects to record a gain of approximately $18.0 million in the fourth quarter of 2024.

In March 2024, the Company entered into a fixed rate time charter-out contract for one VLCC to a third party on a
three-year time charter at a daily base rate of $51,500. The charter commenced in the third quarter of 2024.

In April 2024, the Company entered into a time charter-out contract for one Suezmax tanker to a third party on a three-year time charter at a daily base rate of $32,950 plus 50% profit share.




Corporate Update

In June 2024, the Company attended an introductory hearing before the Enterprise Court in Antwerp, Belgium, in response to a summons received from certain funds managed by FourWorld Capital Management LLC (“FourWorld”) in connection with their claims pertaining to the integrated solution for the strategic and structural deadlock within Euronav NV ("Euronav") announced on October 9, 2023, and Euronav’s acquisition of CMB.TECH NV. FourWorld claims that the transactions should be rescinded and in addition has requested the court to order Compagnie Maritime Belge NV and Frontline to pay damages in an amount to be determined in the course of the proceedings. A procedural calendar has been agreed and the case is scheduled for oral court pleadings in May 2026, after which a judgment will be rendered. The Company finds the claims to be without merit and intends to vigorously defend against them.

The Board of Directors declared a dividend of $0.62 per share for the second quarter of 2024. The record date for the dividend will be September 13, 2024, the ex-dividend date is expected to be September 13, 2024, for shares listed on the New York Stock Exchange and September 12, 2024, for shares listed on the Oslo Stock Exchange, and the dividend is scheduled to be paid on or about September 30, 2024.

The Company had 222,622,889 ordinary shares outstanding as of June 30, 2024. The weighted average number of shares outstanding for the purpose of calculating basic and diluted earnings per share for the second quarter of 2024 was 222,622,889.

Financing Update

In November 2023, the Company entered into a senior secured term loan facility in an amount of up to $1,410.0 million with a group of our relationship banks to partly finance the acquisition of 24 VLCCs from Euronav (the “Acquisition”). The facility has a tenor of five years, carries an interest rate of Secured Overnight Financing Rate (“SOFR”) plus a margin in line with the Company’s existing loan facilities and has an amortization profile of 20 years commencing on the delivery date from the yard. In December 2023, the Company drew down $891.3 million under the facility to partly finance the Acquisition. Up to $518.7 million remained available and undrawn under the facility as of December 31, 2023, all of which was drawn down to partly finance the remaining 13 vessels delivered as a result of the Acquisition in the first quarter of 2024.

In November 2023, the Company entered into a subordinated unsecured shareholder loan in an amount of up to $539.9 million with Hemen to partly finance the Acquisition (the “Hemen shareholder loan”). The Hemen shareholder loan has a tenor of five years and carries an interest rate of SOFR plus a margin equal to the $1,410.0 million facility, in line with the Company’s existing loan facilities. In December 2023, the Company drew down $235.0 million under the Hemen shareholder loan to partly finance the Acquisition. Up to $304.9 million remained available to be drawn as of December 31, 2023. In January 2024, the Company drew down $60.0 million to partly finance the remaining 13 vessels delivered as a result of the Acquisition in the first quarter of 2024. In June 2024, the Company repaid $147.5 million under the Hemen shareholder loan. In August 2024, the Company repaid the Hemen shareholder loan in full.

In December 2023, the Company drew down $99.7 million under its $275.0 million senior unsecured revolving credit facility with an affiliate of Hemen to partly finance the Acquisition. In April 2024, the Company repaid $100.0 million under the facility. Up to $200.0 million remains available to be drawn following the repayment.



In May 2024, the Company entered into a senior secured term loan facility in an amount of up to $606.7 million with China Exim Bank and DNB, insured by China Export and Credit Insurance Corporation, to refinance eight Suezmax tankers and eight LR2 tankers. The facility has a tenor of approximately nine years, carries an interest rate of SOFR plus a margin in line with the Company’s existing loan facilities and has an amortization profile of approximately 19.7 years commencing on the delivery date from the yard. In June 2024, the Company drew down $306.5 million under the facility. Up to $300.2 million remained available and undrawn as of June 30, 2024, all of which was drawn down in August 2024. The refinancing generated net cash proceeds of approximately $275.0 million, of which $135.3 million was generated in the second quarter of 2024.

In July 2024, the Company secured a commitment from CMB Financial Leasing Co., Ltd (“CMB”) for a sale-and-leaseback agreement in an amount of up to $512.1 million to refinance a sale-and-leaseback agreement for 10 Suezmax tankers, which is subject to execution of final transaction documents to both parties' satisfaction. The lease financing has a tenor of 10 years, carries an interest rate of SOFR plus a margin of 180 basis points and has an amortization profile of 20.6 years commencing on the delivery date from the yard and includes purchase options for Frontline throughout the period. The refinancing is expected to generate net cash proceeds of approximately $101.0 million in the fourth quarter, which is expected to be partly used to repay the remaining $75.0 million drawn under the $275.0 million senior unsecured revolving credit facility with an affiliate of Hemen.

Conference Call and Webcast

On August 30, 2024, at 9:00 A.M. ET (3:00 P.M. CET), the Company's management will host a conference call to discuss the results.

Presentation materials and a webcast of the conference call may be accessed on the Company’s website, www.frontlineplc.cy, under the ‘Webcast’ link. The link can also be accessed here.

Telephone conference:
Participants are required to register in advance of the conference using the link provided below. Upon registering, each participant will be provided with Participant Dial In Numbers, and a unique Personal PIN.

In the 10 minutes prior to call start time, participants will need to use the conference access information provided in the e-mail received at the point of registering. Participants may also use the call me feature instead of dialing the nearest dial in number.

Online Registration to the call may be accessed via the following link:
Online registration

A replay of the conference call will be available following the live call. Please use below link to access the webcast:
Replay of conference call

None of the information contained in or that forms a part of the Company’s conference calls, website or audio webcasts is incorporated into or forms part of this release.



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 employees of other companies in related industries;

•
compliance with governmental, tax, environmental and safety regulation, any non-compliance with U.S. regulations;

•
the impact of increasing scrutiny and changing expectations from investors, lenders and other market participants with respect to our ESG policies;

•
Foreign Corrupt Practices Act of 1977 or other applicable regulations relating to bribery;

•
general economic conditions and conditions in the oil industry;

•
effects of new products and new technology in our industry, including the potential for technological innovation to reduce the value of our vessels and charter income derived therefrom;

•
new environmental regulations and restrictions, whether at a global level stipulated by the International Maritime Organization, and/or imposed by regional or national authorities such as the European Union or individual countries;

•
vessel breakdowns and instances of off-hire;

•
the impact of an interruption in or failure of our information technology and communications systems, including the impact of cyber-attacks upon our ability to operate;

•
potential conflicts of interest involving members of our board of directors and senior management;

•
the failure of counter parties to fully perform their contracts with us;

•
changes in credit risk with respect to our counterparties on contracts;

•
our dependence on key personnel and our ability to attract, retain and motivate key employees;

•
adequacy of insurance coverage;

•
our ability to obtain indemnities from customers;

•
changes in laws, treaties or regulations;

•
the volatility of the price of our ordinary shares;

•
our incorporation under the laws of Cyprus and the different rights to relief that may be available compared to other countries, including the United States;

•
changes in governmental rules and regulations or actions taken by regulatory authorities;

•
government requisition of our vessels during a period of war or emergency;

•
potential liability from pending or future litigation and potential costs due to environmental damage and vessel collisions;

•
the arrest of our vessels by maritime claimants;

•
general domestic and international political conditions or events, including “trade wars”;




•
any further changes in U.S. trade policy that could trigger retaliatory actions by the affected countries;

•
potential disruption of shipping routes due to accidents, environmental factors, political events, public health threats, international hostilities including the ongoing developments in the Ukraine region and the developments in the Middle East, including the armed conflict in Israel and the Gaza Strip, acts by terrorists or acts of piracy on ocean-going vessels;

•
the length and severity of epidemics and pandemics and their impacts on the demand for seaborne transportation of crude oil and refined products;

•
the impact of port or canal congestion;

•
business disruptions due to adverse weather, natural disasters or other disasters outside our control; and

•
other important factors described from time to time in the reports filed by the Company with the Securities and Exchange 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 no guarantee of our future performance, and actual results and future developments may vary materially from those projected in the forward-looking statements.

The Board of Directors
Frontline plc
Limassol, Cyprus
August 29, 2024

Ola Lorentzon - Chairman and Director
John Fredriksen - Director
Ole B. Hjertaker - Director
James O'Shaughnessy - Director
Steen Jakobsen - Director
Marios Demetriades - Director
Cato Stonex - 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








INTERIM FINANCIAL INFORMATION

SECOND QUARTER 2024

Index

CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS (UNAUDITED)

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)




FRONTLINE PLC CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
2023
Apr-Jun
2024
Apr-Jun
CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
(in thousands of $, except per share data)
2024
Jan-Jun
2023
Jan-Jun
2023
Jan-Dec
512,763
556,026
Revenues
1,134,423
1,010,095
1,802,184
9,391
51,487
Other operating income
94,229
23,680
24,080
522,154
607,513
Total revenues and other operating income
1,228,652
1,033,775
1,826,264
           
156,610
197,795
Voyage expenses and commission
404,983
315,437
618,595
43,772
57,519
Ship operating expenses
117,345
87,490
176,533
11,701
12,566
Administrative expenses
27,412
24,339
53,528
57,096
83,714
Depreciation
171,726
112,642
230,942
269,179
351,594
Total operating expenses
721,466
539,908
1,079,598
252,975
255,919
Net operating income
507,186
493,867
746,666
           
4,855
5,647
Finance income
7,874
7,728
18,065
(32,390)
(73,380)
Finance expense
(144,756)
(77,807)
(171,336)
(20,795)
2,088
Gain (loss) on marketable securities
815
(23,968)
22,989
1,217
(2,134)
Share of results of associated company
(920)
4,955
3,383
24,973
975
Dividends received
1,283
25,500
36,852
230,835
189,115
Profit before income taxes
371,482
430,275
656,619
(161)
(1,541)
Income tax benefit (expense)
(3,089)
25
(205)
           
230,674
187,574
Profit for the period
368,393
430,300
656,414
$1.04
$0.84
Basic and diluted earnings per share
$1.65
$1.93
$2.95
           
2023
Apr-Jun
2024
Apr-Jun
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands of $)
2024
Jan-Jun
2023
Jan-Jun
2023
Jan-Dec
           
230,674
187,574
Profit for the period
368,393
430,300
656,414
           
   
Items that may be reclassified to profit or loss:
      
77
(214)
Foreign currency exchange gain (loss)
446
131
(39)
77
(214)
Other comprehensive income (loss)
446
131
(39)
230,751
187,360
Comprehensive income
368,839
430,431
656,375







FRONTLINE PLC CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in thousands of $)
Jun 30
2024
Dec 31
2023
ASSETS
    
Current assets
    
Cash and cash equivalents
359,236
308,322
Marketable securities
8,247
7,432
Other current assets
491,785
412,172
Total current assets
859,268
727,926
     
Non-current assets
    
Vessels and equipment
5,435,574
4,633,169
Right-of-use assets
1,864
2,236
Goodwill
112,452
112,452
Investment in associated company
11,467
12,386
Prepaid consideration
—
349,151
Other non-current assets
30,790
45,446
Total non-current assets
5,592,147
5,154,840
Total assets
6,451,415
5,882,766
     
LIABILITIES AND EQUITY
    
Current liabilities
    
Short-term debt and current portion of long-term debt
455,040
261,999
Current portion of obligations under leases
1,130
1,104
Other current payables
165,638
145,951
Total current liabilities
621,808
409,054
     
Non-current liabilities
    
Long-term debt
3,402,413
3,194,464
Obligations under leases
942
1,430
Other non-current payables
463
472
Total non-current liabilities
3,403,818
3,196,366
     
Commitments and contingencies
    
Equity
    
Frontline plc equity
2,426,261
2,277,818
Non-controlling interest
(472)
(472)
Total equity
2,425,789
2,277,346
Total liabilities and equity
6,451,415
5,882,766




FRONTLINE PLC CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
2023
Apr-Jun
2024
Apr-Jun
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands of $)
2024
Jan-Jun
2023
Jan-Jun
2023
Jan-Dec
   
OPERATING ACTIVITIES
      
230,674
187,574
Profit for the period
368,393
430,300
656,414
   
Adjustments to reconcile profit to net cash provided by operating activities:
      
27,535
67,732
 Net finance expense
136,882
70,079
153,271
57,096
83,714
 Depreciation
171,726
112,642
230,942
(9,251)
(51,487)
 (Gain) on sale of vessels and equipment
(94,229)
(21,960)
(21,959)
20,795
(2,088)
 (Gain) loss on marketable securities
(815)
23,968
(22,989)
(1,217)
2,134
 Share of results of associated company
920
(4,955)
(3,383)
(27)
2,919
 Other, net
7,865
10,658
18,199
(8,033)
12,387
Change in operating assets and liabilities
(54,587)
(917)
(8,512)
(1,298)
(11,241)
Debt issuance costs paid
(18,774)
(1,325)
(20,020)
(43,142)
(70,554)
Interest paid
(133,349)
(83,181)
(165,193)
10,008
11,587
Interest received
19,978
17,845
39,411
283,140
232,677
Net cash provided by operating activities
404,010
553,154
856,181
           
   
INVESTING ACTIVITIES
      
(2,566)
(9,434)
Additions to newbuildings, vessels and equipment
(908,493)
(153,280)
(1,631,423)
43,610
208,350
Proceeds from sale of vessels
382,350
142,740
142,740
—
—
Cash inflow on repayment of loan to associated company
—
1,388
1,388
—
—
Proceeds from sale of marketable securities
—
—
251,839
41,044
198,916
Net cash used in investing activities
(526,143)
(9,152)
(1,235,456)
           
   
FINANCING ACTIVITIES
      
129,375
462,253
Proceeds from issuance of debt
1,355,037
259,375
1,609,449
(216,053)
(693,702)
Repayment of debt
(961,132)
(356,625)
(536,587)
(207)
(233)
Repayment of obligations under leases
(462)
(411)
(862)
(155,837)
(138,026)
Dividends paid
(220,396)
(394,043)
(638,928)
(242,722)
(369,708)
Net cash provided by (used in) financing activities
173,047
(491,704)
433,072
           
81,462
61,885
Net change in cash and cash equivalents
50,914
52,298
53,797
225,361
297,351
Cash and cash equivalents at start of period
308,322
254,525
254,525
306,823
359,236
Cash and cash equivalents at end of period
359,236
306,823
308,322


FRONTLINE PLC CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
 
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(in thousands of $ except number of shares)
2024
Jan-Jun
2023
Jan-Jun
2023
Jan-Dec
       
NUMBER OF SHARES OUTSTANDING
      
Balance at beginning and end of period
222,622,889
222,622,889
222,622,889
       
SHARE CAPITAL
      
Balance at beginning and end of period
222,623
222,623
222,623
       
ADDITIONAL PAID IN CAPITAL
      
Balance at beginning and end of period
604,687
604,687
604,687
       
CONTRIBUTED SURPLUS
      
Balance at beginning and end of period
1,004,094
1,004,094
1,004,094
       
ACCUMULATED OTHER RESERVES
      
Balance at beginning of period
415
454
454
Other comprehensive income (loss)
446
131
(39)
Balance at end of period
861
585
415
       
RETAINED EARNINGS
      
Balance at beginning of period
445,999
428,513
428,513
Profit for the period
368,393
430,300
656,414
Cash dividends
(220,396)
(394,043)
(638,928)
Balance at end of period
593,996
464,770
445,999
       
EQUITY ATTRIBUTABLE TO THE COMPANY
2,426,261
2,296,759
2,277,818
       
NON-CONTROLLING INTEREST
      
Balance at beginning and end of period
(472)
(472)
(472)
TOTAL EQUITY
2,425,789
2,296,287
2,277,346




APPENDIX I - Non-GAAP measures

Reconciliation of adjusted profit

This press release describes adjusted profit and related per share amounts, which are not measures prepared in accordance with IFRS (“non-GAAP”). We believe the non-GAAP financial measures provide investors with a means of analyzing and understanding the Company's ongoing operating performance. The non-GAAP financial measures should not be considered in isolation from, as substitutes for, or superior to financial measures prepared in accordance with IFRS.

(in thousands of $)
YTD 2024
Q2 2024
Q1 2024
FY 2023
Q2 2023
Adjusted profit
          
Profit
368,393
187,574
180,819
656,414
230,674
Add back:
          
Loss on marketable securities
1,273
—
1,273
23,968
20,795
Share of losses of associated companies
2,134
2,134
—
1,690
—
Unrealized loss on derivatives (1)
3,385
3,385
—
20,950
—
Debt extinguishment losses
936
—
936
—
—
           
Less:
          
Unrealized gain on derivatives (1)
(815)
—
(815)
(6,075)
(6,075)
Gain on marketable securities
(2,088)
(2,088)
—
(46,957)
—
Share of results of associated companies
(1,214)
—
(1,214)
(5,073)
(1,217)
Gain on sale of vessels
(94,229)
(51,487)
(42,742)
(21,960)
(9,251)
Dividends received
(1,283)
(975)
(308)
(36,852)
(24,973)
Debt extinguishment gains
(354)
(354)
—
—
—
Gain on settlement of insurance and other claims
—
—
—
(397)
—
Adjusted profit
276,138
138,189
137,949
585,708
209,953
(in thousands)
          
Weighted average number of ordinary shares
222,623
222,623
222,623
222,623
222,623
           
(in $)
          
Adjusted basic and diluted earnings per share
1.24
0.62
0.62
2.63
0.94

(1) Adjusted profit has been revised to only exclude the unrealized gain/loss on derivatives to give effect to the economic benefit/cost provided by our interest rate swap agreements. The components of the gain/loss on derivatives are as follows:

(in thousands of $)
YTD 2024
Q2 2024
Q1 2024
FY 2023
Q2 2023
Unrealized gain (loss) on derivatives
(2,570)
(3,385)
815
(14,875)
6,075
Interest income on derivatives
12,418
6,254
6,164
22,914
5,551
Gain (loss) on derivatives
9,848
2,869
6,979
8,039
11,626




Reconciliation of Total operating revenues to Time Charter Equivalent and Time Charter Equivalent per day

Consistent with general practice in the shipping industry, we use TCE as a measure to compare revenue generated from a voyage charter to revenue generated from a time charter. We define TCE as operating revenues less voyage expenses and commission, administrative income, finance lease interest income and other non-vessel related income. Under time charter agreements, voyage costs, such as bunker fuel, canal and port charges and commissions are borne and paid by the charterer whereas under voyage charter agreements, voyage costs are borne and paid by the owner. TCE is a common shipping industry performance measure used primarily to compare period-to-period changes in a shipping company’s performance despite changes in the mix of charter types (i.e., spot charters and time charters) under which the vessels may be employed between the periods. Time charter equivalent, a non-GAAP measure, provides additional meaningful information in conjunction with operating revenues, the most directly comparable IFRS measure, because it assists management in making decisions regarding the deployment and use of our vessels and in evaluating their financial performance, regardless of whether a vessel has been employed on a time charter or a voyage charter.

(in thousands of $)
YTD 2024
Q2 2024
Q1 2024
FY 2023
Q2 2023
Revenues
1,134,423
556,026
578,397
1,802,184
512,763
           
Less
          
Voyage expenses and commission
(404,983)
(197,795)
(207,188)
(618,595)
(156,610)
Other non-vessel items
(2,066)
(575)
(1,491)
(13,524)
(3,810)
Total TCE
727,374
357,656
369,718
1,170,065
352,343

Time charter equivalent per day

Time charter equivalent per day (TCE rate" or "TCE per day") represents the weighted average daily TCE income of vessels of different sizes in our fleet.

TCE per day is a measure of the average daily income performance. Our method of calculating TCE per day is determined by dividing TCE by on hire days during a reporting period. On hire days are calculated on a vessel-by -vessel basis and represent the net of available days and off hire days for each vessel (owned or chartered in) in our possession during a reporting period. Available days for a vessel during a reporting period is the number of days the vessel (owned or chartered in) is in our possession during the period. By definition, available days for an owned vessel equal the calendar days during a reporting period, unless the vessel is delivered by the yard during the relevant period whereas available days for a chartered-in vessel equal the tenure in days of the underlying time charter agreement, pro-rated to the relevant reporting period if such tenure overlaps more than one reporting period. Off hire days for a vessel during a reporting period is the number of days the vessel is in our possession during the period but is not operational as a result of unscheduled repairs, scheduled dry docking or special or intermediate surveys and lay-ups, if any.




 
YTD 2024
Q2 2024
Q1 2024
FY 2023
Q2 2023
Time charter TCE (in thousands of $)
          
Suezmax
2,566
2,566
—
—
—
LR2
28,101
14,044
14,057
45,586
11,337
Total Time charter TCE
30,667
16,610
14,057
45,586
11,337
           
Spot TCE (in thousands of $)
          
VLCCs ex. vessels acquired from Euronav
179,858
78,889
100,969
395,514
126,102
VLCCs acquired from Euronav
187,658
103,393
84,265
1,054
—
VLCCs total
367,516
182,282
185,234
396,568
126,102
Suezmax
193,036
91,493
101,543
480,346
144,669
LR2
136,155
67,271
68,884
247,565
70,235
Total Spot TCE
696,707
341,046
355,661
1,124,479
341,006
           
Total TCE
727,374
357,656
369,718
1,170,065
352,343
           
Spot days (available days less off hire days)
          
VLCCs ex. vessels acquired from Euronav
3,357
1,493
1,864
7,869
1,971
VLCCs acquired from Euronav
4,170
2,180
1,990
184
—
VLCCs total
7,527
3,673
3,854
8,053
1,971
Suezmax
4,223
2,005
2,218
9,140
2,344
LR2
2,535
1,267
1,268
5,294
1,328
           
Spot TCE per day (in $ per day)
          
VLCCs ex. vessels acquired from Euronav
53,600
52,800
54,200
50,300
64,000
VLCCs acquired from Euronav
45,000
47,400
42,300
5,700
—
 VLCCs total
48,800
49,600
48,100
49,200
64,000
Suezmax
45,700
45,600
45,800
52,600
61,700
LR2
53,700
53,100
54,300
46,800
52,900

Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and per day amounts may not precisely reflect the absolute figures.

Estimated average daily cash breakeven rates

The estimated average daily cash breakeven rates are the daily TCE rates our vessels must earn to cover operating expenses including dry docks, repayments of loans, interest on loans, bareboat hire, time charter hire and net general and administrative expenses for the next 12 months.




Spot TCE currently contracted

Spot TCE currently contracted are provided on a load-to-discharge basis, whereby the Company recognizes revenues over time ratably from commencement of cargo loading until completion of discharge of cargo. The rates reported are for all contracted days up until the last contracted discharge of cargo for each vessel in the quarter. The actual rates to be earned in the third quarter of 2024 will depend on the number of additional days that we can contract, and more importantly the number of additional days that each vessel is laden. Therefore, a high number of ballast days at the end of the quarter will limit the amount of additional revenues to be booked on a load-to-discharge basis. Ballast days are days when a vessel is sailing without cargo and therefore, we are unable to recognize revenues on such days. Furthermore, when a vessel remains uncontracted at the end of the quarter, the Company will recognize certain costs during the uncontracted days up until the end of the period, whereas if a vessel is contracted, then certain costs can be deferred and recognized over the load-to-discharge period. The number of ballast days at the end of the second quarter of 2024 was 1,043 days for VLCCs, 306 days for Suezmax tankers and 147 days for LR2/Aframax tankers.

The recognition of revenues on a load-to-discharge basis results in revenues being recognized over fewer days, but at a higher rate for those days. Over the life of a voyage there is no difference in the total revenues and costs to be recognized as compared to a discharge-to-discharge basis.

When expressing TCE per day the Company uses the total available days, net of off hire days and not just the number of days the vessel is laden.