Frontline plc.

gentlemen thank you for standing by welcome to today's quarter to 2020 frontline limited earnings conference call I now hand you over to your first speaker Robert McLeod please go ahead thank you thank you very much good morning and good afternoon everyone thank you very much for dialing into our second quarter earnings call

First, I would like to express gratitude towards our shore staff and crew members for their extraordinary efforts and dedication, which clearly are defining factors to our strong results. Our markets are very volatile, but the volatility seen in the last 12 months have been extreme and serves as a reminder of how little it takes for the tanking market to rally. Frontlines performance in the first half of 2020 was the strongest since 2008, and we've also made solid bookings for the third quarter. Despite the recent fall in rates, 2020 will be a very good year for FrontBank. Let's start with slide three and have a quick look at the highlights from the second quarter. Net income of $200 million, just over a dollar per share, certainly a solid quarter. Adjusted for non-cash items, the net income was 206. We declare a 50 cent dividend. The last dividend was 70 cents for Q1 2020. We opted to repay 60 million on our HEMN facility in the quarter, which is the main reason for the reduced dividend. Inga has done some great work in financing. She will take us through that later on the call. Two new buildings were delivered in the quarter, one Suez Max and one VLCC, leaving us with only four ice-classed LR2s on order, and they deliver next year. VLCCs made £75,800 in Q2, and we have booked 76% of Q3 at around £61,000. Sears Max has made $51,100 in Q2, and we've booked 77% of Q3 at $29.5. LR2 has made just shy of $37,000, and we have booked two-thirds of Q3 at $14.5. These Q3 rates do not include the long-term time charters. And then before moving on to the market, I will hand the call over to Inga to take us through the financials.

Thank you, Robert. And good morning and good afternoon, ladies and gentlemen. Then I think we should turn to slide four and look at the income statement or the highlights. Frontline achieved total operating revenues, debt of voyage expenses of $301 million and adjusted EBITDA of $259 million. in the second quarter of 2020. And we report the net income of $200 million, approximately, and $1.01 per share. And adjusted net income is $206 million, or $1.04 per share in the quarter. The adjustments this quarter was in total 6.4 million net. and they consisted of a 5.9 million loss on derivatives, a 0.9 million unrealized gain on marketable securities, a 2.7 million share of losses on associated companies, and a 1.3 million amortization of acquired time charters. The adjusted net income increased by 27 million This quarter, and it was mainly driven by an increase in our time-structured equivalent earnings due to the higher reported TCE rates on our real-to-seas and LR2 tankers in the second quarter, along with a gain of $12.4 million as a result of the sale of one real-to-sea previously reported investment in finance . Let us then take a look at the balance sheet highlights. The main happenings in the second quarter, which affects the balance sheet, were that we took delivery of the Zeus Max Anki front cruiser, and also we took delivery of front dynamic, and we drew down depth on these vessels. As Robert mentioned, we repaid our senior unsecured facility with $60 million. We entered into two new loan facilities to refinance two loan facilities with total balloon payments of $349 million, which were due in December 2020 and in March 2021 on terms in line with front lines of their loan facilities. We then also paid $138 million in dividends, and we earned net income of $199.7 million. At the end of the quarter, Trondheim has $462 million in cash and cash equivalents, including undrawn amounts under our senior unsecured loan facility, multiple securities, and minimum cash requirements. The current portion of long-term debt includes $240 million debt maturity of the $466.5 million facility during April 2021, and $80.3 million debt maturity of the $109.2 million facility in June 2021, which we both expect to refinance. Our remaining New Building CapEx requirements at the end of the quarter was $161.1 million, relates to the four Li-2 tankers, where two of them are expected to be delivered in January 2021 and in February 2021, and two are expected to be delivered in August 2021. In this connection, Frontline has obtained a financing commitment for a loan facility in an amount of up to $133.7 million from Sexim and Cynosaur to partially finance these four LRQ tankers. This facility will have a tenure of 12 years. It will carry an interest rate of LIBOR plus a margin in line with other loan facilities. And it will have an amortization profile of 17 years. And the facility is subject to final documentation. Let's then take a closer look at the next slide on cash break-even rates and effects, slide six. We estimate average cash cost break-even rates for the remainder of 2020 of $22,600 per day for VFCs, $18,900 per day for the Zeusmax tankers, and $15,700 per day for the LR2 tankers. And the fleet average estimate is about $19,100 per day. These are the rates, the all-in daily rates that our vessels must earn to cover the budgeted operating cost and prior dock, estimated interest expense, TC and bearable tire, installments on loans, and DNA expenses. In the graph on the right-hand side of this slide, we have shown, as usual, the incremental cash flow after debt service per year and per share, assuming $10,000, $20,000, $30,000, or $40,000 per day achieved in excess of our cash break-even rates, respectively. And the numbers, they include vessels on time chartered out, and we are looking at the period of 365 days from July 1, 2020. As an example, with a fleet average cash cost break-even rate of $19,100 per day, and assuming that we have $30,000 on top of the average fleet TCE rate, would be then $49,100. And sometimes we then generate the cash flow per share at the debt service of $3.49. With this, I leave the word to Robert again.