Frontline plc.

Good day and thank you for standing by. Welcome to the Q3 2023 Frontline PLC earnings conference call. At this time all participants are in listen only mode. After the speaker's presentation there will be the question and answer session. To ask a question during the session you need to press star 1 1 on your telephone keypad. You will then hear an automated message advising your hand is raised. To withdraw a question please press star 1 1 again. Please be advised that today's conference has been recorded. I would now like to hand the conference over to our speaker today, Lars Bastad. Please go ahead.

Thank you. Dear all, thank you for listening in to Frontline's third quarter earnings call. To start off, I believe it's prudent to mention that Q3 this year started challenging. And remind the audience of July, August, and Sep is normally called the summer lull in the tanker industry. The excitement in June did give us high expectations for the fall market, and although not jaw-dropping, we have seen worse. The tanker market continues to be firm, with risk rather on the upside than the downside, but there are many pieces to this puzzle. I will get to some of them in this presentation. Before I give the word to Inger, let's look at our TC numbers on slide three in the deck. In the third quarter, Frontline achieved $42,000 per day on our VOC fleet, $37,600 per day on our SUSEMAX fleet, and $33,900 per day on our LR2 slash AFROMAX fleet. We saw the more normal split between the segments. But this converged again as we progressed into Q4, with 81% of our VLCC days booked at $48,100 per day, 70% of our SUSEMax days at $50,300 per day, and 70% of our LR2 slash Afromax days at $51,300 per day. Again, all numbers in this table are on a load-to-discharge basis, and they will be affected by the amount of ballast days we end up having at the end of Q4. We would also like to highlight that these numbers exclude the 24 VLCCs that are delivered during this quarter and next. Further, as we can only account for revenues when a vessel is laden, the new vessels are not likely to affect the revenues for Q4 materially. I would now like to let Inger take you through the financial highlights.

Thanks Lars and good morning and good afternoon ladies and gentlemen. Then I think we can turn to slide four, profit statement. Frontline achieved total operating revenues and net of wage expenses of 232 million dollars in the third quarter and adjusted EBITDA of 173 million. We report net income of 107.7 million or 48 cents per share and adjusted net income and net profit of 80.8 million or 36 cents per share in the third quarter. The adjusted profit in the third quarter decreased by 129 million compared with the previous quarter and that was mainly driven by a decrease in our time starts equivalent earnings due to lower TCE rates in this quarter which was partially then offset by application and other income and expenses. The adjustments in the third quarter consist of 17.9 million gain on marketable securities, 1.7 million share losses of associated companies, 400,000 unrealized loss on derivatives, and 11.1 million of dividends received. Let's then look at the next slide, slide five. Frontline has strong liquidity of 715 million in cash and cash equivalents, including the undrawn amount of our senior unsecured revolving credit facility, the marketable securities and minimum cash requirements for the banks as for the September 30th, 2023. The current portion of long-term debt in the balance sheet at the third quarter includes 91 million from a loan facility due in the first quarter of 24, which was refinanced in November 23. And then also 75.3 million related to the senior unsecured revolving credit facility, which we in October 23 extended to the first quarter of 2026. We have no remaining new building commitments and no meaningful debt maturities until 2027. And we also have a healthy leverage ratio of 52%. Then I think we can turn to slide six. We estimate average cash cost break-even rates for the fourth quarter of 2023 of approximately $28,200 per day for the VCCs, $25,700 per day for the SUSEMax tankers, and $17,100 per day for the LRQ tankers, with a fleet average estimate of about $24,200 per day. The fleet average estimate includes dry dock of seven juice max tankers this quarter, where one vessel only includes 50% of its dry dock cost due to docking in between two quarters and also one in the fourth quarter. The cash break even rates excluding dry dock cost is estimated to be $2,000 lower or $22,200 per day. We recorded OPEX expenses including dry dock in the third quarter of $7,400 per day for field disease, $7,500 per day for SUSEMAX tankers and $7,100 per day for the LR2 tankers. One SUSEMAX entered dry dock in the third quarter and finalized in the fourth quarter. Q3 fleet average OPEX excluding dry dock was $7,400 per day. Then lastly let us look at slide seven and how the acquisition of the 24-wheel disease is funded. As we can see from the slide we will finance the purchase price of 2.35 million dollars for the 24 businesses with the bank facility of 1.4 billion, 252 million cash proceeds from the sale of the 13.7 million shares of Euronaut to CMB, 49 million cash on hand, 99.7 million from our senior unsecured revolving credit facility, and also 540 million dollars from the shareholder loan from Hieman. The ambition is to minimize need for cash from the shareholder loan through Frontline's capacity to re-leverage the existing fleet due to the historically low loan-to-value and or sale of all the non-equal less efficient vessels. With this, I leave the word to you again, Lars. Thank you very much, Inger.