Frontline plc.

Good day and thank you for standing by. Welcome to the Q3 2021 Frontline Limited Earnings Conference call. At this time, all participants are in the listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Lars Barstad, please go ahead.

Thank you very much. And good morning and good afternoon to everyone. Welcome to Frontline's third quarter earnings call. These are indeed volatile times, although maybe not as volatile as we hoped for in freight. Q3 2021 marked the bottom of tankers post-COVID-19. This is seasonally a low point in the market. but everything seems to have been amplified in these times we currently live in. Towards the end of the quarter, we actually started to see a recovery in demand for freight as export volumes grew, which has continued into the fourth quarter. Right now, we are, as the rest of the world, worried about the implication of this new Omicron variant of the COVID-19 virus. What will OPEC Plus do in that respect, and will something come out of the ongoing Iranian nuclear talks in Vienna? Well, let's start with the facts on frontline third quarter and look at the highlights on slide three. Q3 2021 performance reflects the challenges the tanking market faced this quarter. It is, however, a proof that our business model our efficient operations, our modern fleet, and very hard-working team managed to outperform most of our peers. In the third quarter, Frontline achieved $10,500 per day on our BLCC fleet, $7,900 per day on our SUSEMAC fleet, and $10,700 per day on our LR2-SUSEMAC fleet. So far in the fourth quarter, we have booked 79% of our BLCC days at $21,600 per day, 72% of our SUSE max days at $17,900 per day, and 64% of our LR2-AFR max days at $16,000 per day. All numbers in this table are on a low-to-discharge basis, but I do think they show that the markets have indeed recovered from the third quarter, although we have yet to see rates reaching for the skies. I'll now let Inge take you through the financial highlights.

Thanks, Lars, and good morning and good afternoon, ladies and gentlemen. Following the acquisition that we did of the A3C in the first half of the year, we have been busy on the financing side, and in the third and the fourth quarter, we have entered into term-run facilities and obtained financing commitments for a total amount of up to $507 million to partially finance the acquisition of the two 2019 built VCCs and also the six VCC new building contracts. These facilities will finance 65% of market value. They will carry an interest rate of about a margin of 170 basis points. And they will have an amortization profile of mostly 20 years, but also 18, and a single delivery date from yard. When we factor in 33.4 million available under the term facility entered into in November 2020 to partially finance the delivery of the last LR2 tanker, we have established bank debts of up to $540.4 million. The company has also raised gross proceeds of 51.2 million under the equity distribution agreement, and also net cash proceeds of approximately 67 million through sale of four LIQ tankers. And following this, remaining commitments as per September 30th for Frontline's new building program, consisting of one LIQ tanker and the six VCCs, and for the acquisition of the two 2019 built VCCs, is fully funded. Through these new financings, we reduce our borrowing costs and we also reduce our industry-leading cash-back-even rates, providing significant operating leverage and sizable returns during periods of market strength and help protecting our cash flows during periods of market weakness. Trondheim has also extended the terms of the Senior Unsecured Revolving Credit Facility of up to $275 million by 12 months, to May 2023, leaving Frontline with no loan maturities until 2023. Then let's turn to slide four and look at the income statement. Frontline achieved total operating revenues, net of wage expenses of $69 million and adjusted EBITDA of $17 million in the third quarter of 2021. We reported net loss of 33.2 million, or 17 cents per share, and adjusted net loss of 35.9 million, or 18 cents per share, in the third quarter. The adjustments consist of a 1.2 million gain on derivatives, a 0.2 million gain on marketable securities, and a 1.3 million amortization of acquired time charters. Yet just a net loss in the third quarter increased by 12.7 million compared with the second quarter. And this increase in loss was driven by a decrease in our time charter equivalent earnings due to lower TCE rates and the recognition of a gain on the marketable securities sold in the second quarter of 4 million. This was partly offset by a decrease in ship operating expenses of 3.2 million, primarily as a result of lower dry docking costs. Then let us take a look at the balance sheet on slide five. The total balance sheet numbers have increased with 6 million in the third quarter. And the balance sheet movements in the quarter are primarily related to taking delivery of the LRQ tanker from favor. in addition to ordinary debt repayments and depreciation. As of September 30, 2021, Frontline has $190 million in cash and cash equivalents, including undrawn amounts under our Senior Unsecured Loan Facility, multiple securities and minimum cash requirements. Frontline's remaining new building and vessel acquisition capex of $659.4 million as per September 30, 2021, is fully funded by 540.4 million in estimated debt capacity and also the 118.2 million in cash raised through the ATM and the sale of the four LIQ tankers which I mentioned. The company has also no debt maturities until 2023, as I also mentioned. Then, let's take a closer look at cash break-even rates and effects on slide 6. We estimate average cash cost per given rate for the remainder of 2021 of approximately $21,400 per day for the VCCs, $17,800 per day for the suitback tankers, and $14,100 per day for the LFU tankers. And the fleet average estimate is about $17,600 per day. These rates are the all-in daily rates that our vessels must earn to cover the budgeted operating costs and dry dock, estimated interest expenses, TC and bearable fire, installments on loans, and G&A expenses. We recorded OPEC expenses in the third quarter of $8,200 per day for the VCCs, $7,200 per day for the SUSEPAX tankers, and $8,800 per day for the LRQ tankers. They dry docked two LR2 tankers in the third quarter, and they expect to dry dock one VCC and one suspect tanker in the fourth quarter. Then, the graph on the right-hand side of the slide shows free cash flow per share, and free cash flow yield basis current fleet and share price of November 26, as alternative TCE rates. Let's take an example. If we assume historic Clarkson TCE rates for non-ecovessels in the period 2000 to November 2021, adjusted then for frontline fleet scrubber and ecovessels, frontline will have a free cash flow yield of 38%. Free cash flow yield potential increases with higher assumed TCE rates and also on a fully delivered basis. With this, I leave the word to Lars again.