First Quarter 2002 Results


Frontline Ltd.

Interim Report January – March 2002


Frontline reports net income of $14.9 million for the first quarter of 2002, compared with net income of $192.3 million for the first quarter of 2001. This result reflects the continued weakness in the tanker market with average daily time charter equivalents (“TCEs”) earned by VLCCs, Suezmax tankers, and Suezmax OBO carriers being $20,600, $16,500 and $18,000, respectively, compared with $19,900, $20,600 and $20,300, respectively in the immediately preceeding quarter. The TCE of $20,600 reported for VLCCs includes vessels trading on the spot market and on time charters. Earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter, including earnings from associated companies were $56.8 million (2001 quarter: $192.4 million).

Net interest expense for the quarter was $15.1 million (2001 quarter: $21.7 million). This compares with $18.1 million for the fourth quarter of 2001. The decrease primarily reflects lower interest rates in the period. Other financial items for the quarter were positive $5.5 million of which $2.2 million is attributable to the market value adjustment on interest rate swaps and $2.3 million to the Equity Swap Line discussed below. In the first quarter of 2002, the Yen was largely unchanged against the US Dollar, resulting in a reduced foreign currency impact for the Company.

Earnings per share for the quarter were $0.19, (2001 quarter: $2.49). Cash flow per share for the quarter was $0.64, compared with $2.87 for the same quarter in 2001.

On May 21, 2002, the Board declared a dividend of $0.05 per share. The record date for the dividend is May 31, 2002, ex dividend date is May 29, 2002 and the dividend will be paid on or about June 12, 2002.

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