Good day and thank you for standing by. Welcome to the Q1 2021 Frontline Earnings Conference Call. At this time, all participants are in a listen-only mode. After the presentation, there will be a question-and-answer session. To ask a question during this session, you will need to press star and one on your telephone. I must advise you that this conference is being recorded today on Thursday, the 27th of May 2021. Now, without any further delay, I'd like to hand the conference over to your speaker today, Lars Barstad, Interim CEO. Please go ahead. Thank you very much. Thank you, and good morning, and good afternoon to everyone. Welcome to Frontline's first quarter earnings call for 2021. We're obviously quite content being able to provide black numbers, maybe to the surprise to many of you. Q1 2021 was a fairly quiet quarter corporate-wise, as we are in a good position financially and no major transactions were concluded during the quarter. We continue at Frontline to have a high focus on the wellbeing of our seafarers as they are out there being exposed to the global ebb and flow of COVID-19 infections. Our technical and operations team are doing a fantastic job in mitigating the challenges that arise, and I'm very happy to report that we are well underway in vaccinating our sailors. Let's now move to slide three and have a look at the highlights. The Q1 2021 performance is very much a testament to keeping true to our strategy. Being mostly spot exposed and not expecting an imminent recovery in the market, our chartering desk remained true to trading the ships in a manner where we allow our vessels to commit to long voyages, securing income, but potentially giving away upside. Our modern fuel-efficient fleet is built for this purpose and it also gives us this flexibility. This proves to be the right call. In the first quarter of 2021, we made $19,000 per day on our VLCC fleet, $15,200 per day on our Suezmax fleet, and $12,000 per day on our LR2/Aframax fleet. Far in Q1, we have booked 70% of our VLCC days at $18,100 per day, 63% of our Suezmax days at $13,600 per day, and 59% of our LR2/Aframax days at $14,200 per day. All these numbers in the table are on a load-to-discharge basis. Before Inger takes you through the financial highlights, let me quickly comment on the fleet development as well. We took delivery of two of our four LR2s coming this year from Fusion and from Future in March and April respectively, bringing our number of LR2s on the water to 20. Further, subsequently, we confirmed acquisitions through resale of 6 high-spec eco scrubbers-fitted VLCCs to be delivered from Hyundai Heavy Industries in Korea, five in 2022 and one early in 2023. I'll now let Inger take you through the financial highlights. Thank you, Lars. Good morning and good afternoon to all of you. Let's turn to slide four and look at the income statement. As Lars said, we are happy to report numbers in black. Frontline achieved total operating revenues less voyage expenses of $107 million in the first quarter. We also had an adjusted EBITDA of $59 million, and we report net income of $28.9 million or $0.15 per share. Further, we have an adjusted net income of $8.8 million or $0.04 per share. The adjusted net consists of $15.7 million gain on derivatives, a $3.1 million unrealized gain on marketable securities, a $1.2 million amortization of acquired time charters, and a $0.1 million share of results of associated companies. The adjusted net income in the first quarter have increased $21 million compared with the previous quarter. The increase was driven by a decrease in ship operating expenses of $11 million, mainly as a result of $6.4 million in lower dry docking costs. We also had an increase in time charter equivalent earnings of $6.8 million, that was due to the higher TCE rates. We had a $11.2 million decrease in other costs. Let us take a look at the balance sheet on slide five. The total balance sheet numbers have increased with $10 million in the first quarter. The balance sheet movements in the quarter were primarily related to taking delivery of the LR2 tanker from Fusion, in addition to ordinary debt repayments and depreciation. As of March 31st, 2021, Frontline had $380 million in cash and cash equivalents, including undrawn amounts under our senior unsecured loan facility, marketable securities and minimum cash requirements. Let's then take a closer look on slide six on the cash break-even rates and the OpEx. We estimate average cash cost break-even rates for the remainder of 2021 of approximately $21,500 per day for VLCCs, $17,700 per day for the Suezmax tankers, and $15,900 per day for LR2 tankers. This give a fleet average estimate of about $18,100 per day. These rates are the all-in rates that our vessels must earn to cover budgeted operating costs and dry dock, estimated interest expenses, TC and bareboat hire, and installments and on loans and G&A expenses. In the quarter, we recorded OpEx expenses of $7,300 per day for the VLCCs, $7,100 per day for the Suezmax tankers, and $7,200 per day for the LR2 tankers. We did dry dock one Suezmax tanker in the first quarter only, and we expect to dry dock two Suezmax tankers and four LR2 tankers in the second quarter. Let's look at the graph on the right-hand side of the slide. As usual, we show the incremental cash flow after debt service per year and per share, assuming $10,000, $20,000, $30,000 or $40,000 per day achieved rates in excess of our cash break-even rates. The numbers include vessels on time charter equivalent are adjusted for new building deliveries, and we are looking at a period of 365 days from April 1st, 2021. In this graph, as an example, with a fleet average cash cost break-even rates of $18,100 per day and assuming $30,000 on top of the average fleet earnings, that the TCE rate would be $48,100 per day and Frontline would then generate a cash flow per share after debt service of $3.45. With this, I leave the words to Lars again. Thank you very much, Inger. Let's move to slide seven and have a look or a recap of the Q1 2021 tanker market. It goes without saying that it's been somewhat demanding. Total world oil consumption rose by 4.3 million bbl from January to March and reached 96.5 MMbpd. On the other hand, supply fell by 500,000 bbl. This was mostly fueled by the actions from Saudi Arabia and their volunteer cuts. That ended up at 93.5 MMbpd at the end of the quarter. As we continue to draw on inventory, tanker demand remained basically unchanged. We did during the quarter see return of Libyan volumes, and we also had towards the end of the quarter the U.S. cold snap that created a lot of volatility. Tanker rates firmed towards the end of the quarter, and this I find quite positive because it actually is indicating a thinner balance than what may be perceived. Basically, to wrap up Q1, we see demand or consumption is running ahead of supply and the drawn inventories is kind of mitigating that volume. If you look at the chart on the right-hand side, you see what I refer to as a ripple rather than a very strong market. We see how quickly rates react, where we saw firstly, the Aframax market move in line with the Libya opening up. Secondly, the Suezmax market reacted, and that was mostly fueled by the U.S. Gulf cold snap or the U.S. cold snap affecting the volumes out of U.S. Gulf. Let's move on to slide eight and look at the tanker order books. On all asset classes, we are observing delayed recycling. We see very little support for keeping older tonnage in this market, but they remain in the fleet list. Recycling prices are up 30% year to date and are now kind of being negotiated around $550 per long ton or $23 million for a VLCC. This is to some extent being outcompeted by the fact that we continue to see demand for vintage tonnage from undisclosed buyers at relatively firm prices. The overall tanker order book has shrunk year to date by approximately 4%. This as vessels deliver and new ordering has been fairly muted. We've seen on the VLCC side 38 new orders placed. As 25 vessels are delivered at the same time, the order book remains to be fairly flat. The VLCC order book stands at around 9% of the existing fleet, and the overall order book for tankers is at or around 7% of the existing fleet. Let's move to slide nine and look at what's going on with asset prices. The asset prices are on the move. We have, over the last six months, seen more than 170 new orders for container ships. We've also seen quite firm ordering on LPG and also seen confirmation of LNG orders, which has further contributed to the activity. In line with the entire commodity space, steel prices have appreciated sharply. The fundamentals of the tanker market suggest a tightening of capacity over the coming years, and the regulatory side tightening in respect of greenhouse gas emissions further supports the case of investing in modern fuel-efficient ships. Propulsion is yet not the driver. Right now, it's the yard capacity or rather the lack of it, which is driving prices together with the steel. Let's move to slide 10 and look at the short-term outlook. We're currently right in the middle of OPEC plus productions increasing. They are increasing somewhat slowly, but they are adding to transportation demand. Currently, Asia, and in particular China, are coming out of refinery maintenance, and oil demand continues to recover. Now it's U.S. and European focus as we're coming out of lockdowns. Inventories, both on land and floating, are now normalized and at pre-COVID-19 levels. From where we are now, according to EIA, oil supply is expected to grow by 6 million bbl by year-end. If you look at the graph on the left-hand side below, we see that most of these increases are expected to happen basically from where we stand now and over the summer. The key to the demand balances in 2021, you can find on the right-hand side. We know that gasoline demand fell by 3.3 MMbpd in 2020, and it's now expected to grow by 1.8 MMbpd in 2021. For jet, it affected the crude oil balances by 3.2 MMbpd negative in 2020, and about 1.3 MMbpd is expected to return this year. For diesel, we're actually adding more than we lost, 1.2 MMbpd. For fuel oil, we're keeping at level. Other kind of uses of oil is also adding to this at 0.7 MMbpd. Let's move over to slide 11 and my summary. Basically to wrap this up, all key macro indicators point towards a firm recovery. Global GDP is expected up 6% this year. Asset prices are on the move as yard capacity is tightening and steel prices are increasing. As I just mentioned, global oil supply is expected to grow by 6 million bbl by the end of 2021. The COVID-19 vaccination pace in the developed countries is very encouraging and countries are opening up. We can see on the graph below, which indicates activity within the various key segments of the shipping sector, that the cyclical recovery run has started. All key shipping sectors are firm, but tankers are lagging. Frontline is ideally positioned to capitalize on the anticipated recovery in tanker markets with our modern, spot-exposed, fuel-efficient fleet. With that, I would like to open up for questions and answers. Thank you. Once again, as a reminder, if you wish to ask a question, it is star and one on your telephone. Your first question today comes on the line of Jon Chappell of Evercore. Please ask a question. Your line is now open. Thank you. Good afternoon. Hello. Jon, I'd say that's a pretty balanced outlook on the market, maybe a bit more balanced than some of the optimism out there. Obviously, the press release last week on the six new VLCCs indicate, I think, a lot of optimism about where the market's going. I think I asked this three months ago, at this stage in the cycle, based on what you see for the next 12 months or so, do you think you're a more aggressive acquirer of assets? If so, how much of the fuel propulsion question play into whether you're doing more new builds like you announced last week versus maybe the traditional Frontline activity in the secondhand market? Well, first of all, I would say that we're always aggressive, but the right opportunity has to also come our way. Our overall view of the market has. Over the last couple of months. We are more conditioned now that we are moving in the right direction. With regards to resale versus modern vessels on the water, we obviously have to look at the current spot market, when we weigh to take a ship that's sailing in this market or taking a ship that will be delivered at a point in time where we're expected to be on full throttle again. That's obviously a part of the consideration. Secondly, it's actually not that many vessels for sale that kind of fall within where we want to invest. You could say that although the activity in dry bulk has been tremendous, and the activity on ordering container ships and LPG has been fantastic and so forth, we also see asset play markets have been fairly muted year to date. Okay. No, it makes complete sense. Just to follow on to that, as far as the financing is concerned, I understand you're going to almost certainly get financing for these ships ordered or announced last week. It was a bit curious to me that for the down payment, given the cash you have on your balance sheet, you still drew down $50 million from the Hemen facility. What's the thought process around the amount of liquidity you want to keep, taking debt to pay down payments, not resuming the dividend despite a profitable quarter? I understand that the second quarter is weak, and we have a kind of near-term choppy outlook, should we think about just drawdowns of debt to finance new builds going forward and maybe retain the cash for a stronger market than you think about capital returns again? I think we have flexibility with respect to this facility that we are drawing on. We will establish the, let's say, debt financing. We intend to do that, I guess probably in the second half of 2021, at least for the first vessels. Maybe also for all of them, depending upon the opportunities that arise when we begin or start to work on that. With respect to equity and the payment of this facility that we're drawing on, we have flexibility going forward to decide how to do that and when to do. If we would like to use ATM, that depends upon the share price, and when we would like to raise equity also depends on that. I think we will keep that a bit open. Okay. All right. Thank you, Inger. Thanks a lot. Thank you. Thank you. Your next question today comes from the line of Randy Giveans of Jefferies. Please ask your question. Howdy, team Frontline. How's it going? It's good, Randy. How are you doing too? All right. I guess the question, we talked a lot about the crude markets, just looking also at the product tankers. Maybe how do you view those two and maybe the timing of an inflection of where you really start to see some rate improvement? Then with that, are you using any of this kind of soft patch to clean up some of your LR2s that were trading dirty to start trading clean going forward? Well, to start with the first one. We are obviously in a recovery phase, and I think we've probably just finished drawing on inventories. That's at least some of the stats I'm seeing, which is relatively live. We're also in the refinery turnaround, the relatively heavy one. Actually, I was quite hopeful for the product market to start to run already in March, but that faded. I think in order for the product market to start to properly move, we need a bigger portion of the lost jet demand back. There is always a product market to be had around Arbs opening up. For that, we need to see the refineries coming out of turnaround. It's like a chicken and egg kind of discussion. To be quite honest, I'm still not 100% sure which would come first. Whether it's going to be a pull or a push or whether we're going to see increased demand for crude oil first, pushing the VLCC market, then drizzle into the LR2s as product is transported, or the other way around. It's difficult to say, to be quite honest. With regards to cleaning up, we have cleaned up one vessel, and used this opportunity in the market. It's not really an opportunity because it always comes with some degree of cost. We always have to remind ourselves that we actually have a lot of incremental income lurking up when we're doing this. I think it should be expected that we gradually will look at utilizing our vessels as LR2s because that's what they are, rather than Afras. Yeah, that makes sense. All right, I guess second question from me. You've shown some impressive expense control here with the market downturn, specifically more recently, a sharp reduction in vessel OpEx and G&A. Going forward, what's a good run rate for those two line items? As I mentioned, for this quarter that we are into now, we will have a dry docking cost which is higher than we had in the first quarter. We only had less than $600,000 of dry docking cost in the first quarter. I guess for the second quarter, we estimate around $700,000 or probably a bit more as well. In that sense, of course, the operating expenses will increase in the next quarter. It will vary a lot between quarters depending upon how much vessels we dry dock. In the third quarter, we are planning to dry dock three vessels instead of six, meaning that it will be kind of half again of what I said for the second quarter, of cost, I mean. With respect to the admin expense, I would say that G&A, what we have now in the first quarter, is not a going rate. I think it's probably a couple of million dollars on top of that would be a going rate going forward. A couple of million on top of the $6 million. Okay. $9 million, is that a good run rate going forward? That's probably a bit too high, but a couple of dollars on top of what is in the report that is against eight-point something then, $8.3 million or $8.5 million, whatever. Something in that respect. Okay, perfect. Yeah. That's it for me. Thank you so much. Thank you. Thank you. Thank you. Your next question today comes the line of Magnus Fyhr of H.C. Wainwright. Please ask your question. Yeah, good afternoon. Most of my question has been answered, but just kind of going back to Jon's question regarding your thoughts on ordering or buying more ships. Do you think there's an opportunity here? There seems like a lot of the operators are a little hesitant to buy ships or order ships at these levels, given the uncertainty regarding propulsion technology. Just curious to see if you think there's further opportunities there, new building versus acquiring resales. Thank you. Well, I think we will remain true to kind of our word and try not to add to the order book. To be quite honest, where the current order book is quite difficult to gauge because I think you would struggle tremendously to order a VLCC, say, for delivery in Q4 2023. If you should locate a slot there, I think the prices are probably north of $100. It could be that we would rather then focus on acquiring either resales or modern eco vessels on the water. I think it's important to note here that it has been a frantic activity with the yards. Inger and I like to compare some of the outlook going forward to the period we had in 2002, 2003. At that time, we had a lot more yard capacity coming. Right now we don't have that. We even have yards starting to look at 2025, just to give you a color on kind of the situation out there. Okay. You guys have a really modern fleet, and you mentioned the scrapping prices are picking up. What do you see out there as far as actually some of these older ships finally heading to the scrap yards? Current spot prices are very challenging for these older ships, and I was just curious if you expect to see that scrapping finally start to increase here during the summer. I think it will. Kind of our count stands at eight VLCCs sold for scrap year to date, I think it's three Suezmaxes. We have to remember, though, that there have been disruptions in the capacity for the recycling yards to actually accept offers due to COVID. The pandemic has affected the kind of efficiency there as well. I think where the prices are now on recycling steel, we should definitely see some action. Having said that, we still have this competition out in the market for vintage second-hand tonnage coming from undisclosed kind of parties, which most likely are involved in the trade that I like to refer to as the dark web of oil. Basically transporting either Venezuelan or Iranian sanctioned crudes. I guess with the ongoing talks with the Iranians and potentially those sanctions being removed, what's your thoughts about those vessels finally maybe not being able to compete in an open market? I think that could be a tremendous kicker to the conventional law-abiding tanker market. It's basically we all talk about the Costco moment in the tanker industry, and I think you could have that because suddenly, at least with the nuclear deal between U.S. and Iran, you're going to have quite a lot of volume that needs compliant ships to trade within the compliant market. Okay, great. Just one final question, if I may, to Inger or you, regarding the dry docking schedule. Are you trying to do all the dry dockings ahead of the fourth quarter, or you think you'll have some ships in the fourth quarter as well, just kind of position yourself for a market recovery? No, we will not do any dry dockings in the fourth quarter, it's only in the second and the third. Okay, great. Thank you. Okay. Thank you. Ladies and gentlemen, as a reminder, it is star and one if you wish to ask a question. We do have one more question at this time. This comes from the line of Chris Snyder. Please ask your question. Hey, guys. Good afternoon. How are you? Hey. Hey. I wanted to kind of dig in just a little bit more to a question that was asked a bit earlier regarding the OpEx, because we saw that it kind of came down significantly from Q4, roughly around 20%. Just looking back at your previous presentation of the OpEx, the daily OpEx were with the Suezmax was around $9,700 a day, and in this presentation it's down to like $7,100. Maybe if you can help explain how that is achieved. The OpEx will vary between quarters, as I said, due to the dry dock of the vessels, whether we are dry docking or not, in a way. In this particular quarter you're referring to, where the Suezmax is having a high OpEx, that was due to that you had dry dockings of Suezmaxes in that quarter, while now you only had small dry docking costs, which didn't really affect the OpEx. I think to further clarify, we actually take the actual dry docking cost in the quarter. We expense it down. We expense it. We don't capitalize that. Many of our peers do. That's why we get that volatility in that. Yeah. Right. I see. Okay, understood. Thanks so much. I guess just following up on another question is for the six VLCCs resales that is going to start in delivery in 2022. Could you perhaps expand on the cadence of the delivery? Is it more front-loaded or back-loaded? I know one is delivering in 2023. Just wanted to know if it is going to be smoothed out or any color would be appreciated. Well, it's going to be fairly smooth, to be quite honest. The first vessel delivering very early in 2022. Obviously, we have a little bit of flexibility in the deliveries at this stage, and them coming like pearls on a string, and the last one coming very early in 2023. Okay. Great. Just the last question, I noticed in the presentation or in the press release, there was a decision to purchase shares in Golden Ocean, just I think only around $400,000, so it's not big, but I wanted to kind of see if you can go into your details on the decision to purchase shares in Golden Ocean. This is related to that we have a forward contract for Golden Ocean shares, where we then, through that contract, in a way, got the possibility to take part in that rights issue which Golden Ocean had. It was not a huge amount, it was two shares, but anyway, we did it because it was in the money in a way. All right, fair enough. That's it for me. Thank you, guys. Thank you. Thank you. There are no further questions at this time. Inger, last back to you. Yeah. Well, thank you very much for hosting, and also thank you very much for listening in. Thank you to the entire Frontline team for fantastic efforts in Q1. Stay safe, everyone. That does conclude our conference call today. Thank you all for participating.