Thank you all for coming by and welcome to today's Q2 2021 Frontline Limited earnings conference call. Our presentation for today will be followed by a question and answer session. To ask a question over the audio, kindly press star one on your telephone keypad. Please be advised, the call is being recorded, and I would now like to hand the call over to your speaker, Lars Barstad. Thank you. Thank you. Good morning and good afternoon. Welcome to Frontline second quarter earnings call. Different from the first quarter this year, second quarter ended up being quite a busy one. As many of you have asked quite a few times now, will Frontline try and exploit the weakness in this market to grow further? I guess we have answered that now during Q2. We are in some way a three-legged shipping platform with VLCC, Suezmax and LR2s. Our VLCC leg has been a bit shorter than the others. Now we're mending that somewhat. Parts of the challenges in the market this quarter has been the continuous flare-ups of COVID infections in various locations around the world. Vaccination has come far in the Western parts, other parts of the globe are not so fortunate. We remain vigilant towards our seafarers' well-being and are happy to share that our efforts to arrange vaccines for them is going well. I'd like to mention, we are very grateful certain port states are being extremely generous offering vaccines to seafarers literally for free. Let's move on and have a look at the highlights on slide three. Q2 2021 performance reflects the challenges the market faced this quarter. It is, however, a further proof that our business model, efficient operations, modern fleet, and a very hardworking chartering team manages to outperform the key benchmarks. To put this in perspective, an average weighted earnings index I checked recently for all tankers came in just over $6,000 per day in Q2 2021, the lowest print in more than 20 years. In order to outperform this, the owner, and in particular the owner's charterers, must fight for every cent and know their position well to be able to play their hands best possible. Regretfully, this is not always the case as far as we can observe. At Frontline, we do the hard work and manage to achieve $15,000 per day on our VLCC fleet, $11,000 per day on our Suezmax fleet, and $10,600 per day on our LR2/Aframax fleet in the second quarter of this year. So far in Q3, we have booked 70% of our VLCC days at $14,000 per day, 64% of our Suezmax days at $9,800 per day, and 63% of our LR2/Aframax days at $11,800 per day. All numbers in this table are on a load to discharge basis. Before Inger takes you through the financial highlights, let me quickly comment on the acquisitions in the quarter. During Q2, we acquired, through resale, six latest generation Eco type VLCCs currently under construction at Hyundai in Korea. In addition, we acquired two modern Eco type VLCCs built in 2019 at the same shipyard. We have for a period of time followed the VLCC asset market closely to look for opportunities. As we didn't expect an imminent recovery in tanker markets, delivery was a key bargaining chip. The rallying steel prices and high activity around us for non-tanker assets pushing potentially delivery slots way forward added to our conviction in making these investments. I'll now let Inger take you through the financial highlights. Okay. Thanks, Lars, good morning and good afternoon, ladies and gentlemen. Following the acquisition of the VLCC, as Lars mentioned, we have progressed on the loan financing. In August this year, we obtained financing commitments subject to final documentation for three senior secured term loan facilities. They are in a total amount of up to $247 million, they will partially finance the acquisition of the two VLCCs built in 2019 and two of the six VLCC new building contracts. All facilities will finance 65% of market value. They will carry an interest rate of LIBOR plus a margin of 170 basis points, they will have an amortization profile of 20 years counting from delivery date from the yard. We intend to establish long-term financing for the remaining four resale VLCC new building contracts closer to delivery of the vessels. I think we should move to slide four and look at the income statement. Frontline achieved total operating revenues net of various expenses of $80 million and adjusted EBITDA of $28 million in this quarter. We report a net loss of $26.76 million or $0.13 per share and adjusted net loss of $23.2 million or $0.12 per share. The adjustment this quarter consists of a $4.7 million loss on derivatives, a $0.8 million gain on marketable securities, and a $1.3 million amortization of acquired time charters, and lastly, a $0.8 million share of losses of associated companies. The adjusted net loss in the second quarter decreased $32 million compared with the first quarter. The decrease was driven by a decrease in our time charter equivalent earnings due to the lower TCE rates, as Lars mentioned, an increase in ship operating expenses of $9.3 million, mainly as a result of higher dry docking costs, offset by a gain on marketable securities sold in the quarter of $4 million. Let us look at balance sheet on slide five. The total balance sheet numbers have increased with $64 million in this quarter. The balance sheet movements in the quarter are primarily related to taking delivery of the LR2 tanker Frontline Future and the acquisition of six VLCC newbuilding contracts, in addition to ordinary debt repayments and depreciation. As of June 30th, Frontline has $257 million in cash and cash equivalents, including undrawn amounts under our senior unsecured loan facility, marketable securities, and minimum cash requirements. Let us take a closer look at cash break-even rates on slide six. We estimate average cash cost break-even rate for the remainder of 2021 of approximately $21,800 per day for the VLCCs, $7,500 per day for the Suezmax tankers, and for $15,400 per day for the LR2 tankers. The fleet average estimate is about $18,000 per day. These rates are the all-in daily rates that our vessels must earn to cover the budgeted operating cost and drydock, estimated interest expenses, TCE and bareboat hire, installments on loans, and G&A expenses. The highly attractive terms on the obtained financing commitments on four of the acquired VLCCs, which I mentioned earlier, decreases the daily cash break-even rates with approximately $1,400 per vessel per day compared to existing financing terms of similar vessels. In the quarter, we recorded OpEx expenses of $7,600 per day for VLCCs, $8,500 per day for Suezmax, and $9,000 per day for LR2. We drydocked three Suezmax tankers in this quarter, sorry, and four LR2 tankers. We expect to drydock one VLCC and two LR2 tankers in the third quarter and none in the fourth quarter. The graph on the right-hand side of this slide shows that if we assume $30,000 on top of the daily fleet average cash cost break-even rate of $18,000, Frontline will generate a cash flow per share at the cost of $3.51 per year. The cash generation potential will increase after acquisition of the eight VLCCs. With this, I leave the word to Lars again. Thank you, Inger. Let's look at slide seven and recap the second quarter tanker market. Global oil consumption averaged 96.7 million barrels per day in Q2 2021. That's up 2.1 million barrels per day from Q1 2021. Production averaged 94.9 million barrels per day, hence the world continued to draw about 1.8 million barrels from inventories. Just to put that in perspective, when you draw from inventories, you're not really using that much transportation. As a rule of thumb on tanker utilization, you need about 30 VLCC equivalents in order to transport 1 million barrels of oil per day. This kind of draw represents a loss of 30 - 35 VLCC equivalents in demand. The tanker rates gradually slipped throughout the quarter and volatility faded. OPEC+ did increase supply by more than 1 million barrels per day during Q2 2021, but key OPEC producers also went into higher demand periods, typically in the Middle East where summer hits and you start to basically burn oil or fuel for electricity generation. U.S. and Brazil added another 900,000 barrels per day. Most of the Brazilian additions came out as exports, but for U.S., they're also seeing a very strong growth in demand, hence less barrels were exported out of the U.S. Gulf. Demand rose sharply in North America and Greater Europe, whilst Asia, that led the recovery, saw a far more muted development in the second quarter of the year. As I illustrate in the two charts below, where I basically isolated North America, Europe and Eurasia, we see that during Q2, demand there rose sharply whilst the rest of the world, and in particular Asia, and as I mentioned, that led the recovery towards 2021, has performed less first half this year. Let's move over to slide eight and look at the tanker order books. New ordering has naturally been muted during the second quarter of 2021. We've observed that the delivery window for ordering a significant number of VLCCs or Suezmaxes is now firmly into 2024. This obviously due to all the ordering activity for asset classes outside of the tanker space. The overall tanker order book for VLCC, Suezmax, and LR2 has shrunk 10% year- to- date. The overall order book for tankers above 10,000 deadweight tons stands at 8% of the existing fleet. This is in fact comparable to levels seen in Q1 1997. In absolute deadweight terms, we are at 20 years low. Also like to put this in some perspective. 20 years ago, the global oil consumption was around or at 76 million barrels per day. A normalized market now is closer to 100, if not above. It means that the oil market is 30% larger now than in early 2000. The order book is just about the same size. The VLCC order book is now at 81 units, give or take. At the same time, 124 VLCCs will be above or past 20 years in the same period. For Suezmax, we are at 41 units. 123 passing 20 years on the same metrics. Let's move to slide nine and look at oil in transit. This is a very important indicator to us. We monitor this basically on a monthly basis to see where we are. Oil in transit is basically oil being transported, so in essence, excluding whatever is on storage. As you can see, I've circled in 2020 in a red rectangle here. As you can see, 2020 was a very noisy year for oil transportation. We started off the year with the Saudi-Russian price war, which distorted Q1 and Q2, and we had a massive production increase and the transportation increase. The COVID-19 pandemic hit, and we saw a demand shock that suddenly took away a lot of production and also then transportation needs. Q3 and Q4, the transportation needs diminished almost back to 2017 levels. Floating storage did save tanker utilization at the time. First half of 2021, the tanker markets, basically volume has increased and transportation has grown. We've been facing increased fleet supply by vessels release from storage and delivery of newbuilds, together with seeing deep inventory draws. Where we are now, this is obviously July and August of 2023, we're back to Q4 2019 levels. OECD commercial inventories are now down to 2019 levels, and we believe that's a fair proxy for global inventories. There's also another thing to note. When inventories are no longer drawn, transported oil will come into play. As an example of this, EIA are currently estimating us to build 1 million barrels of oil per day for September, but then come October, we're supposed to draw 0.5 million barrels per day from inventories. That gives you a delta of 1.5 million barrels, which then needs to be transported. That's equivalent to the demand for 45 - 48 VLCC equivalents. I think this gives you a notion of how quickly this can turn. Let's move to slide 10. I focused a bit on this in our press release, and I call it the VLCC fleet paradox. This is almost the same for Suezmaxes, but I decided to point out this for the VLCCs. We may all speculate in what the older generation of VLCCs are doing. It is undisputable that a 20-year-old vessel will struggle as a very limited number of charterers accept them, and this is purely on age. With the challenging trading environment we've had during the first half of this year, earnings achieved on non-Eco, high-consuming vessels have been zero or negative. Mind you, 51 vessels are above 20 years as we speak. Year- to- date, eight VLCCs are reported sold for recycling. The average recycling price in Asia has risen 70% in the same period and is now close to $25.5 million for a VLCC. One of the typical exits for an older vessel in the tanker world is crude oil storage. While crude oil curves turn into backwardation in Q4 last year and are not at all supporting floating storage. So far this year, we've seen three VLCC spot fixtures reported on a vessel that's either 20 years or older than that. This is out of the 660 VLCC fixtures we recorded. Again, I want to highlight this because it is important, and it's very important looking at the previous slide where we are in the cycle on oil being transported. If it is so that the effective tonnage actually hasn't grown over the last couple of years, then we're closer to balance than we might think we are. This is, as I mentioned in the press release, it distorts the picture to such an extent that it needs to be basically addressed. Let me sum up on slide 11. Demand and supply of oil continues to rise. We have to admit, the Delta variant infections cloud the outlook, in particular in Asia. We see asset prices remain firm, steel prices continue to rise, and the activity is very good on the yards, but for non-tanker assets. At the same time, the tanker fleet continues to age, the overall order book shrinks, and the potential delivery window moves further out should demand for tankers pick up. OPEC+ plan to add about 400,000 barrels per day each month to the end of the year. This means in total, 2 million barrels per day of increased supply. Go back to the math, we would need 60 - 65 VLCC equivalents by the end of the year. Oil in transit continues to rise, the big question mark is obviously when do we reach the inflection point? I would like to draw your attention to the chart below or at the bottom of the slide. I showed you this last quarter as well, and as the orange dot indicates, this was where we were in March this year. We're basically gradually digging ourselves in from negative year-on-year growth in global oil trade into positive territory. Since last, Frontline has increased its position significantly. We have secured attractive financing and are ready to capitalize as we sail on towards the expected recovery. Thank you very much. I would then like to open for questions. Thank you. We'll now begin the question and answer session. To ask a question, please press star one on your telephone keypad and wait for your name to be announced. To cancel your request, kindly press the hash key. Once again, star one if you have any questions. The question is from the line of Randy Giveans from Jefferies. Your line is now open. How dy, Randy? Mr. Giveans, your line is now open. You may ask your question. Okay, once again, if you have any questions, please press star and one. The question is from the line of Magnus Fyhr from H.C. Wainwright. Thank you. Yeah. Good afternoon. Looking at the performance on the fleet in the third quarter, compared to some of the peers, looked like you had a little bit better performance. I know it's hard to compare quarter-to-quarter, but you've been consistently outperforming the peers. Was there anything else in the quarter or is there any other flavor you can give on the performance in the third quarter? It's a good question. This is one of the things that we obviously try to analyze. Obviously, when you compare two peers, there is an aspect of fleet composition and the age of your fleet, and that does play a part. It doesn't account for all the kind of outperformance. It's also kind of staying true to the fact that we are ship owners. We have assets we need to protect, and we need to try as hard as we can to get our clients to understand that and not give in. It's also about a modern fleet, in addition to economics, it also gives you more opportunities to trade around. You basically have all options. That's an important factor as well as you try to triangulate your vessels in order to achieve higher utilization and better returns. I hope that's a good answer to your question. Yeah. Thank you for that color. Also, we're staring into the abyss here. Rates are very weak. We're in the weakest part of the year. You mentioned that the fleet growth may not be as high if you adjust for the age composition of the fleet. But do you have any visibility into the winter market? We're still in August. I know it's a little bit early, but was just curious your outlook here for a recovery in the fourth quarter. The share volatility of the freight market tells you that we know very little, to be quite honest. On the other hand, we fix far ahead, so we actually do see the demand quite early. In that perspective, what we see is that what we basically now we're doing September dates in the Middle East and West Africa, and it looks quite good as to volumes. We've seen rates in Suezmax actually try to edge up a little bit. We're also fixing early October dates out of U.S. Gulf, and that looks relatively busy in the beginning as well. I won't give you any guarantees, but the picture looks at least better than it did two weeks ago. Okay. Well, that's good. Just one last question then. In the S&P market, you've been active buying some resales. Just curious if you see any opportunities in the secondhand market. There was a vessel, I guess there was a non-Eco 2012 built vessel reported last week at a pretty big discount. I don't know if that was just a one-off transaction or an indication of a potential weakness here in the secondhand market. I don't know if you can give any color on that. I think if there is a curve on values, I think the softest spot is the middle-aged generation, and particularly if it doesn't have a scrubber. The older vessels like the really old ones, they've been held up by this artificial demand from undisclosed accounts that want to use the vessel for whatnot. The modern vessels are obviously the ones everyone wants to own as we go into a tightening regulatory framework and face all sorts of efficiency demands going forward. That keeps these vessels in the middle a little bit out of fashion. I'm not too worried about that transaction because basically from what I see, you can argue that a very modern vessel or a resale or a new build is more correlated to the asset prices themselves and eventually to the steel price. As long as that is holding up, I'm not too worried about for the modern part of this fleet. Okay. Thank you very much for answering my questions. Thank you. Thank you. Next question, it's from the line of Jon Chappell from Evercore. Thank you. Good afternoon. Hi. Hi. Inger, you've lined up $130 million for two of the six VLCC new builds. Should we assume that you're looking for similar percents about, by my math, around 70% financing, so another $260 million to be taken down for the remaining four? Yeah, I will be looking for that, Jon. Okay. If we take that $390 million plus the drawdown on the Hemen facility, that's the majority of the payment on this. I think that only leaves like $74 million in cash outlay for the six new builds. Is that the type of financing in total you're looking for? Or when you get the bank facilities for the remaining four ships, would you have to pay that back to Hemen facility immediately? We will use this Hemen facility as a bridge financing at the moment. We will continue, or we will consider in a way a bit further down the road our options on long-term financing for the equity portion of these vessels. Okay. Then in addition to the Hemen facility expiring in May of 2022, which obviously you've pushed that back several times, and it's probably a safe bet to assume you could push it back further if you'd like. Are there any other big bullet payments or amortization profiles coming up in the next let's call it 12 to 18 months as we kind of bridge to the recovery that Lars talked about? No, there is nothing until 2023. Okay, great. Generally speaking, you feel good about the liquidity profile. It's now just finalizing the debt on the last 4 new builds and kind of holding on until the market recovers. Is that correct? Yeah, that is correct. Yeah. All right. Great. That's all I had. I think liquidity is important to getting you there, and thanks for laying that out for me, Inger. Yeah. Thanks. Thank you. Our next question is from Randy Giveans from Jefferies. Thank you. Howdy, Lars and Inger. Can you hear me now? Yeah, we can. Yes, we can. Howdy. Excellent. I could hear you earlier. You just couldn't hear me. That's all right. Congrats, obviously, Lars on the official promotion to CEO. Exciting times for that. Thank you very much. Two questions. Clearly, Frontline's been pretty active in acquiring tonnage. Is this strategy to continue to grow the fleet that way, or will you now maybe look to sell some older assets? Well, after almost every time we speak, it's difficult to give you the playbook here on the air if at all. We obviously keep all options open. I'm not going to dismiss it nor confirm it. We will always look at our fleet composition, and we favor the more modern units. That could be a part of our strategy going forward, yes. Okay. That's fair. Looking at your quarter to date rates, they are pretty good relative, right? Do those include any recently signed time charters? Have you signed any of those this summer? We start to see some rates ticking up on the product side. Is that maybe the start of a recovery or still too early to tell? The first question first. We haven't done any time charters. That is a very good question because short-term time charters, we record as spot, and we haven't done any of those. Okay. Secondly, on the LR2 market you're referring to, yes, it's firming out in Asia, and it's actually quite strong. We like to think it has legs, but we've been kind of disappointed a few times now when it's had a run for it. Had one back in April as well. Yeah. Let's say the jury is out. What we have done in the meantime is actually cleaning up one of our LR2s. The balance is more tilted towards the clean now, with seven of the 20 vessels trading dirty and then obviously 13 clean and ready to rumble in that market. Perfect. Dirty and 13 clean. All right. Well, hey, sorry for the difficulties earlier, but thanks for getting back on. Oh, thank you. Thank you. There are no further questions at this time. Please continue. Okay. Magnus wishes to ask a question again. Would you like to take it? Yeah, of course. Yeah. On the cleanup of the LR2. I think your line is open. Yeah. Hi. Thanks. Just a follow-up question on the cleanup of that LR2. Can you just tell me a little bit about the process and the length of time, and when it will be ready to clean? Just the process of getting it to trade cleaner products. Well, there are different avenues. Obviously in this case, we found an opportunity to actually wash the tanks and at a reasonable cost and have a following voyage lined up already. That's more luck than a skill, I must admit. Normally the way you do it is, in order to trade properly as a clean ship, you need to have the last three cargoes clean. The first cleaning cargo could be condensate, then you might move into another product, then finally you're actually able to transport like a gas oil or a gasoline even. Then by that, you basically clean up the vessel. That kind of experience means that you sometimes need to discount freight in order to get to that point. Basically what we look at is if there is a $750,000 - $1 million spread between the two markets, and we can line something up, we will basically start a process of cleaning a dirty LR2. Obviously, switching the other way, you can do instantly. In this case, we actually decided to invest some money in doing the physical clean. That meant that we could, depending obviously on the charter and his requirement, but we managed to, within a relatively short time and one voyage, we managed to become a properly clean vessel. From the time you wash the tanks to carrying gasoline, what's the timing of that? In this case, it's probably approximately 25-30 days. That three cargoes didn't apply because you washed the tanks or? No. Yeah. Okay. Otherwise it would have taken long. Yeah. Thanks for that color. You're welcome. There are no further questions now. Please continue. Okay. If that was all, thank you very much for listening in on a busy day on reporting. We will soldier on at Frontline and hopefully next quarter we can report a completely different situation in the market. Thank you. That concludes our conference for today. You may all disconnect. Thank you all for participating.