Frontline (FRO) investor relations material

Executive summary

• Achieved Q1 2026 profit of $559.1 million ($2.51 per share), with adjusted profit at $344.9 million ($1.55 per share), the highest since Q4 2004, driven by exceptional market conditions and Middle East disruptions.

• Revenues reached $714.2 million for Q1 2026, supported by robust tanker demand and high volatility.

• Declared a cash dividend of $1.55 per share for Q1 2026.

• Entered significant financing agreements totaling $737 million for newbuildings and $237.5 million for refinancing and revolving credit.

• Sold eight older VLCCs and two Suezmax tankers, generating $210.9 million gain and $140 million in proceeds, with new time charter agreements for VLCCs at high rates.

Financial highlights

• Q1 2026 revenues: $714.2 million, net profit $559.1 million, adjusted profit $344.9 million, and adjusted EPS $1.55, all up significantly from Q4 2025.

• EBITDA for Q1 2026 was $673.2 million; adjusted EBITDA was $457.8 million.

• Net cash from operating activities: $382.5 million in Q1 2026.

• Cash and cash equivalents stood at $945 million as of March 31, 2026.

• No significant debt maturities until 2030.

Outlook and guidance

• Q2 2026 bookings: 82% of VLCC days at $181,700, 79% of Suezmax at $131,300, and 68% of LR2/Aframax at $125,000 per day.

• Cash generation potential estimated at $1.5 billion ($7 per share) based on current rates; a 30% spot market increase could raise this to $2.1 billion ($9.51 per share), while a 30% decrease would lower it to $1 billion ($4.41 per share).

• Free cash flow yield annualized at 18% based on current market rates.

• Management remains constructive on long-term tanker market outlook, citing energy security and diversified oil sourcing.