Frontline plc.

Thank you all for coming by and welcome to today's Q2 2021 Frontline Limited Earnings Conference Call. Our presentation for today will be followed by a question and answer session. To ask a question, offer the audio kindly for a star one on your telephone keypad. Use the advice calls being recorded and I would now like to hand the call over to your speaker, Lars Warstad, thank you.

Thank you, good morning and good afternoon. Welcome to Frontline's second quarter earnings call. Different from the first quarter this year, second quarter ended up being quite a busy one. As many of you have asked quite a few times now, will Frontline try and exploit the weakness in this market to grow further? And I guess we have answered that now during Q2. We are in some way a three-legged shipping platform with VLCCs, Truesmax and LR2s. Our VLCC leg has been a bit shorter than the others. Now we're mending that somewhat. Parts of the challenges in the market this quarter have been the continuous flare-ups of COVID infections in various locations around the world. Vaccination has come far in the western parts, but other parts of the globe are not so fortunate. We remain vigilant towards our seafarers' well-being and are happy to share that our efforts to arrange vaccines for them is going well. In addition, I'd like to mention, we're very grateful certain port states are being extremely generous, offering vaccines to seafarers literally for free. So let's move on and have a look at the highlights on slide three. Q221 performance reflects the challenges the market faced this quarter. It is, however, a further proof that our business model, efficient operations, modern fleet, and a very hard-working chartering team manages to outperform the key benchmarks. To put this in perspective, an average weighted earnings index I checked recently for all tankers came in just over $6,000 per day in Q221, the lowest print in more than 20 years. In order to outperform this, the owner, and in particular the owner's charters, must fight for every cent and know their position well to be able to play their hands best possible. Regretfully, this is not always the case as far as we can observe. Anyway, at Frontline, we do the hard work, and managed to achieve $15,000 per day on our VLC-C fleet, $11,000 per day on our SUSEMAX fleet, and $10,600 per day on our LR2 slash APROMAX fleet in the second quarter of this year. So far in Q3, we have booked 70% of our VLC-C dates at $14,000 per day, 64% of our SUSEMAX dates at $9,800 per day, and 63% of our LR2 slash Afromax days at $11,800 per day. All numbers in this table are on the low to discharge basis. Before Inger takes you through the financial highlights, let me quickly comment on the acquisitions in the quarter. During Q2, we acquired through resale. six latest generation EcoType VLCs currently under construction at Hyundai in Korea. In addition, we acquired two modern EcoType VLCs built in 2019 at the same shipyard. We have for a period of time followed the VLC asset market closely to look for opportunities. As we didn't expect an imminent recovery in tanker markets, delivery was a key bargaining chip. They're rallying steel prices and high activity around us for non-tanker assets, pushing potentially delivery slots way forward, added to our conviction in making these investments. I'll now let Inger take you through the financial highlights.

Okay. Thanks, Lars, and good morning and good afternoon, ladies and gentlemen. Following the acquisition of the VFC, as Lars mentioned, we have progressed on the loan financing. And in August this year, we obtained financing commitments subject to fund documentation for three senior secure terminal facilities. They are in a total amount of just $247 million, and they will partially finance the acquisition of the two VSCs built in 2019, and two of the six will see new building contracts. All facilities will finance 65% of market value. They will carry an interest rate of Leiber plus a margin of 170 basis points. And they will have an amortization profile of 20 years, counting from delivery date from the ARC. We intend to establish long-term financing for the remaining four resale EV2C new building contracts closer to the delivery of the vessels. And then I think we should move to slide four and look at the income statement. Trondheim achieved a total operating revenues debt of various expenses of $18 million and adjusted EBITDA of $28 million in this quarter. And we report a net loss of $26.76 million. or 13 cents per share, and adjusted net loss of 23.2 million, or 12 cents per share. The adjustments this quarter consist of a 4.7 million loss on derivatives, a 0.8 million gain on marketable securities, and a 1.3 million amortization of acquired time charters, and lastly, a 0.8 million share of losses of associated companies. The adjusted net loss in the second quarter decreased 32 million compared with the first quarter. And the decrease was driven by a decrease in our time-sharded equivalent earnings due to the lower TCE rates, as Lars mentioned, an increase in ship operating expenses of 9.3 million, mainly as a result of higher drive docking costs, offset by gain on flexible securities sold in the quarter of $4 million. Let us then look at balance sheets on slide 5. The total balance sheet numbers have increased with 54 million in this quarter. The balance sheet movements in the quarter are primarily related to taking delivery of the LR2 tanker from future and the acquisition of 65 new building contracts in addition to all their debt repayments and depreciation. As of June 30. Frontline has $257 million in cash and cash equivalents, including amounts under our senior unsecured close facility, multiple securities and minimum cash requirements. Then let us take a closer look at cash breakeven rates on slide six. We estimate average cash cost breakeven rates for the remainder of 2021. of approximately $2,800 per day for the VCCs, $7,500 per day for the Zeus tankers, and $15,400 per day for the LR2 tankers. And the fleet average estimate is about $18,000 per day. These rates are the all-in daily rates that our vessels must earn to cover the budgeted operating costs and dry drops. estimated interest expenses , installments on loans, and G&A expenses. The highly attractive terms on the octade financing commitment on four of the acquired user seats, which I mentioned earlier, decreases the daily cashback even rates with approximately 1,400 vessels per day compared to existing financing terms of similar vessels. In the quarter, we recorded OPEX expenses of $7,600 per day for VCCs, $8,500 per day for SUSMACs, and $9,000 per day for LR2. We dried up three SUSMAC tankers in this quarter, sorry, and four LR2 tankers, and we expect to dry up one VCC and two LR2 tankers in the third quarter, and none in the fourth quarter. The graph on the right-hand side of this slide shows that if we assume $30,000 on top of the daily fleet average cash cost within rate of $18,000, Frontline will generate a cash flow per share at the debt service cost of $3.51 per year. And the cash generation potential will increase after acquisition of the ATC. With this, I leave the word to Lars again.