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Shipping & Energy Dinner 27. March 2007: 

Shipping & Energy Dinner 27. March 2007 Guest speaker: Bjorn Sjaastad, CEO Frontline Sponsored by:

Slide2: 

CEO Bjørn Sjaastad March 27, 2007 Norwegian-British Chamber of Commerce

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THIS PRESENTATION AND ITS ENCLOSURES AND APPENDICES (HEREINAFTER JOINTLY REFERRED TO AS THE “PRESENTATION” HAS BEEN PREPARED BY FRONTLINE LTD. (“FRONTLINE” or THE ”COMPANY”) EXCLUSIVELY FOR INFORMATION PURPOSES. THIS PRESENTATION HAS NOT BEEN REVIEWED OR REGISTERED WITH ANY PUBLIC AUTHORITY OR STOCK EXCHANGE. RECIPIENTS OF THIS PRESENTATION MAY NOT REPRODUCE, REDISTRIBUTE OR PASS ON, IN WHOLE OR IN PART, THE PRESENTATION TO ANY OTHER PERSON. THE DISTRIBUTION OF THIS PRESENTATION AND THE OFFERING, SUBSCRIPTION, PURCHASE OR SALE OF SECURITIES ISSUED BY THE COMPANY IN CERTAIN JURISDICTIONS IS RESTRICTED BY LAW. PERSONS INTO WHOSE POSSESSION THIS PRESENTATION MAY COME ARE REQUIRED BY THE COMPANY TO INFORM THEMSELVES ABOUT AND TO COMPLY WITH ALL APPLICABLE LAWS AND REGULATIONS IN FORCE IN ANY JURISDICTION IN OR FROM WHICH IT INVESTS OR RECEIVES OR POSSESSES THIS PRESENTATION AND MUST OBTAIN ANY CONSENT, APPROVAL OR PERMISSION REQUIRED UNDER THE LAWS AND REGULATIONS IN FORCE IN SUCH JURISDICTION, AND THE COMPANY SHALL NOT HAVE ANY RESPONSIBILITY OR LIABILITY FOR THESE OBLIGATIONS. IN PARTICULAR, NEITHER THIS PRESENTATION NOR ANY COPY OF IT MAY BE TAKEN OR TRANSMITTED OR DISTRIBUTED, DIRECTLY OR INDIRECTLY, INTO CANADA OR JAPAN. THIS PRESENTATION DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY SECURITIES IN ANY JURISDICTION TO ANY PERSON TO WHOM IT IS UNLAWFUL TO MAKE SUCH AN OFFER OR SOLICITATION IN SUCH JURISDICTION. IN RELATION TO THE UNITED STATES AND U.S. PERSONS, THIS PRESENTATION IS STRICTLY CONFIDENTIAL AND IS BEING FURNISHED SOLELY IN RELIANCE ON APPLICABLE EXEMPTIONS FROM THE REGISTRATION REQIUREMENTS UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED. THE SHARES OF MDL HAVE NOT AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES, OR TO OR FOR THE ACCOUNT OR BENEFIT OF U.S. PERSONS, UNLESS AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE U.S. SECURITIES ACT IS AVAILABLE. ACCORDINGLY, ANY OFFER OR SALE OF SHARES IN MDL WILL ONLY BE OFFERED OR SOLD (I) WITHIN THE UNITED STATES, OR TO OR FOR THE ACCOUNT OR BENEFIT OF U.S. PERSONS, ONLY TO QUALIFIED INSTITUTIONAL BUYERS (”QIBs”) IN PRIVATE PLACEMENT TRANSACTIONS NOT INVOLVING A PUBLIC OFFERING AND (II) OUTSIDE THE UNITED STATES IN OFFSHORE TRANSACTIONS IN ACCORDANCE WITH REGULATION S. ANY PURCHASER OF SHARES IN THE UNITED STATES, OR TO OR FOR THE ACCOUNT OF U.S. PERSONS, WILL BE DEEMED TO HAVE MADE CERTAIN REPRESENTATIONS AND ACKNOWLEDGEMENTS, INCLUDING WITHOUT LIMITATION THAT THE PURCHASER IS A QIB. NONE OF THE COMPANY’S SHARES HAS BEEN OR WILL BE QUALIFIED FOR SALE UNDER THE SECURITIES LAWS OF ANY PROVINCE OR TERRITORY OF CANADA. THE COMPANY’S SHARES ARE NOT BEING OFFERED AND MAY NOT BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN CANADA OR TO OR FOR THE ACCOUNT OF ANY RESIDENT OF CANADA IN CONTRAVENTION OF THE SECURITIES LAWS OF ANY PROVINCE OR TERRITORY THEREOF. THIS PRESENTATION INCLUDES “FORWARD-LOOKING” STATEMENTS (DEFINED IN SECTION 27A OF THE US SECURITIES ACT AND SECTION 21E OF THE US EXCHANGE ACT AS ALL STATEMENTS OTHER THAN STATEMENTS OF HISTORICAL FACTS) INCLUDING, WITHOUT LIMITATION, THOSE REGARDING THE COMPANY’S FINANCIAL POSITION, BUSINESS STRATEGY, PLANS AND OBJECTIVES FOR FUTURE OPERATIONS. SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY, OR, AS THE CASE MAY BE, THE INDUSTRY, TO MATERIALLY DIFFER FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. SUCH FORWARD-LOOKING STATEMENTS ARE BASED ON NUMEROUS ASSUMPTIONS REGARDING THE COMPANY’S PRESENT AND FUTURE BUSINESS STRATEGIES AND THE ENVIRONMENT IN WHICH THE COMPANY WILL OPERATE. AMONG THE IMPORTANT FACTORS THAT COULD CAUSE THE COMPANY’S ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS TO MATERIALLY DIFFER FROM THOSE IN THE FORWARD-LOOKING STATEMENTS ARE, AMONG OTHERS, THE COMPETITIVE NATURE OF THE MARKETS, TECHNOLOGICAL DEVELOPMENTS, GOVERNMENT REGULATIONS, CHANGES IN ECONOMICAL CONDITIONS OR POLITICAL EVENTS. Disclaimer

Frontline – Key Strategic Issues: 

Frontline – Key Strategic Issues Tanker business for crude oil Concentration and focus – “keep it simple” Scale – threshold / critical mass taken seriously by charterers trading patterns / flexibility / COAs low cost operator ( purchasing ) Taken seriously in investor market ( > USD 1 bill. ) Shareholder / investor oriented – Create values high dividend payout ratio high liquidity / volumes timely and accurate information

Frontline – Key Strategic Issues cont.: 

Frontline – Key Strategic Issues cont. Professional, business oriented and dedicated organisation extensive use of outsourcing HQ: chartering, projects, finance and accounting close follow-up of third-party service providers: ship management post fixture Aggressive and opportunistic investment strategy Solid financial base low break even rates access to funding return on equity

Frontline History : 

Frontline History Stock Listings 1997 Norway 1998 London (OTC) 2001 NYSE Acquisitions / Mergers: 1996 Frontline AB (7 vessels) 1998 LOF (3 vessels) 1999 ICB (8 vessels) 2000 Golden Ocean (23 vessels) Purchase of vessels 1996 – 2007 N/Bs: 25 vessels 2nd hand: 30 vessels

Spin-offs: 

Spin-offs Ship Finance International Limited 2003 – 2007 Golden Ocean Group Limited 2004 – 2005 Sealift Ltd. 2007 Sea Production Limited 2007

Frontline Fleet: 

Frontline Fleet Introduction Most of the vessels are fixed on t/c for the remainder of the committed period - 3 SS Suezmaxes sold to Sealift and chartered back on short-term BB until conversion - Front Transporter sold with delivery Q1

Corporate structure: 

Corporate structure Introduction FLEET

Newbuildings: 

Newbuildings

Financial Highlights: 

Financial Highlights Fourth Quarter 2006

Major transactions 2006/2007 : 

Major transactions 2006/2007 Sale of Front Beijing, Front Tobago, Front Vanadis, Front Transporter Newbuilding contracts Delivery of Front Shanghai Exercise and resale of two VLCC options Sealift Ltd. Sea Production Limited

Income on time charter basis: 

Income on time charter basis Financial Review Imarex forward curve as of 23.02.07 for the period Q1 2007- Q2 2008

Cash breakeven rates ($/day): 

Cash breakeven rates ($/day) Financial Review

Company overview: 

Company overview Sea Production Ltd. (Bermuda) FPSO Front Puffin (Under conversion) Contract with AED Oil Ltd for Puffin field (2 yrs + 4 x 1yr opt.) 1st oil expected 7/07 FPSO Crystal Ocean (Operating) On bareboat charter to Anzon, Australia Presently at Basker Manta field in the Bass Strait (3 yrs + 2 x 1 yr opt) - world wide trading M/V Sea Cat Aframax tanker Spot market Commercial management and technical supervision by Frontline M/V Sea Jaguar Aframax tanker Spot market Commercial management and technical supervision by Frontline Sea Production Mgmt Mgmt agr. Floated and OTC Listed February 2007 Investment/funding USDm 415 acquisition Front Puffin and management company USDm 210, Crystal Ocean USDm 90, Sea Cat and Sea Jaguar USDm 36 and Working capital USDm 79 To be financed with: Equity USDm 180 1. pri. bank debt USDm 105 2. pri. Bond USDm 130 Frontline 28% / Keppel 5% / Investors 67%

Company overview: 

Company overview Floated and OTC listed in January 2007 Investment / funding USDm 476 acquisition HL vessels USDm 100 Suezmax vessels USDm 38 To be financed with: Equity USDm 180 1. pri. bank debt USDm 120 2. pri. Bond USDm 110 Seller credit USDm 80 Sealift Ltd. (Bermuda) Sealift Sunda Under conversion Delivery Apr 07 Sealift Target BB USD 15,000/day to Frontline to May 07 Delivery Sep 07 Sealift Traveller BB USD 15,000/day to Frontline to Aug 07 Delivery Jan 08 Sealift Comor BB USD 15,000/day to Frontline to Nov 07 Delivery May 08 Sealift Granite Commercial & technical mgt agreement with FRO Option for HL conversion Sep 08E Sealift Marble Commercial & technical mgt agreement with FRO Option for HL conversion Jan 09E Sealift Management BV Mgmt agr*) *) Temporary management agreement with Frontline Management Suezmax sister vessels Frontline 33% Investors 67%

Key figures : 

Key figures Financial Cash dividend paid in total => USD 39.05 per share Spin off paid in total => USD 20.44 per share Share price 22.03.2007 => USD 35,10 Cash dividend 2006 => USD 7.55 per share Spin off SFL => USD 2.79 based on share prices of USD 26 – 23.02.2007

Return on Equity: 

Return on Equity

The Frontline Share: 

The Frontline Share Share price: $35.10 as of date 22/03/07 Shares outstanding: 74,825,169 Trading volume (22/03/07): 1,034,600 shares No. shareholders: 3.268 Market cap. $2,626 million Enterprise value: $4,900 million EBITDA 2006: $866 million EPS 2006: $6.90 P/E: 5.09 EV/EBITDA: 5.66 Cash Yield (declared): 21.51% Source: Oslo Stock Exchange Graph to be included

Entering the doldrums or steering clear ?: 

Entering the doldrums or steering clear ? The Market Q4 relatively weak in both segments Stable fleet growth for Suezmaxes in 06 (y/y) Lower fleet growth for VLCCs in 06 (y/y) External factors Stock fluctuations Oil price movements Warm weather Reduced delays Absence of Hurricanes Geopolitical tension reduced Official OPEC cuts Oil demand at 85.5 mbd in 4Q06 (1.5% y/y) Stable demand increase expected $/day $/day Source: Clarkson, IEA Q1 Q4 Q1 Q4

VLCC: 

VLCC Existing fleet 1 VLCC delivered in Jan 2007 160 SH vs 320 DH Orderbook Total orderbook at 162 VLCCs 2 VLCCs ordered in Jan 2007 Fleet Update 34% of Existing Source: Fearnleys (Bulk Fleet Update, 31 Jan 2007)

Suezmax: 

Suezmax Existing fleet 6 Suezmaxes delivered in Jan 2007 70 SH vs 280 DH Orderbook Total orderbook at 127 Suezmaxes 8 Suezmaxes ordered in Jan 2007 36% of Existing Source: Fearnleys (Bulk Fleet Update, 31 Jan 2007) Fleet Update

Trading within the $50-60/bbl price band: 

Trading within the $50-60/bbl price band Slightly improved sentiment OPEC Production Cuts in November 2006 and February 2007 Oil Market

Crude Oil Inventory: 

Crude Oil Inventory Falling – but still at high levels Source: IEA Oil Market Strategic oil reserves: China USA

Demand growth adjusted up: 

Demand growth adjusted up World Oil Demand Annual Growth Source: IEA, Energy Intelligence, Fearnleys Oil Market Growth to average 2.0% in 2006 – 2011 Strong demand growth in Asia and ME Stable in remaining regions OECD countries remain the largest consumer as a group US Strategic Petroleum Reserves (SPRs) 2.7% growth in tonn-miles in 2007 (3.0% in 2006)

Robust world economy: 

Robust world economy Mild deceleration in the United States Europe and Asia will resist US slowdown well Temporary inflation downturn due to lower oil prices Interest rates Fed is expected to cut in the autumn ECB expected to continue its rate hikes International Economy Source: OECD, SEB GDP Annual Growth

Outlook: 

Outlook Macro Healthy macroeconomic environment despite GPD growth cooling off Large orderbook, but 2007 not that bad Single hull phase out Uncertainty on the supply side of oil / Further OPEC cuts unlikely Political Stability Supply side major determinant for rates and values Frontline Spin-offs / one off profits Single hull exposure Orderbook Breakeven rates T/C coverage / spot Business opportunities FFA Curve Source: Imarex, 23 February 2007

Q & A: 

Q & A