Welcome to the Frontline Q2 2009 Results Presentation Conference Call. At this time I would like to turn the conference over to Mr. Jens Martin Jensen.

Welcome to Frontline Q2 2009 presentation. The program for this presentation will be that our CFO Inger Klemp will go through the second quarter highlights, thereafter a financial review, update on our newbuildings program. Thereafter I will discuss a little bit about the markets for Q2, where we see things going forward and there should be time for some questions after that. So Inger, you can take it from now. Thank you.

Thanks, Jens. I will quickly run through then the highlights and a financial review in the second quarter 2009 as Jen said. Moving to slide 4; In April 2009 we amended the time charter agreements for Front Lady and Front Highness to bareboat agreements and extended the contracts for one additional year from the single hull phase out date in 2010 to around April 2011 and August 2011, respectively. These vessels will be operated as floating storage units and have ceased to trade as regular tankers. In May, we took delivery of a second newbuilding Front Queen. Further in May 2009 Frontline agreed with two shipyards to cancel four Suezmaxs’ and two VLCC newbuilding contracts representing a total contractual cost of $556 million or 33% of our newbuildings program. Installments already paid on the cancelled newbuildings will be applied to and set-off against the payments on the remaining newbuildings. In May the company has further secured long-term pre and post delivery newbuilding financing representing 70% of the contractual cost of the last two newbuildings being built at Waigaoqiao shipyard. Later of in July, Frontline agreed to terminate a long-term charter party for the single-hull vessel Front Duchess and received a compensation payment of approximately $2.8 million in that respect. Moving to slide 5, let me go quickly through the financial highlights in the second quarter 2009. Frontline reports net income of $28 million, equivalent to an earnings per share of $0.36 in the second quarter of 2009. On this basis we announced a dividend of $0.25 per share for the second quarter. For the six month period ending June 30, 2009, Frontline reported net income of $104 million, equivalent to earnings per share of $1.34. Moving to slide 6, net income in the second quarter is $48 million lower than…

Thank you Inger. Q2 was a interesting quarter with earnings, rate structure income basically [zero]. It is around $45,000 for VLCC’s. According to Clarksons, the average VLCC earning in the second quarter was 20,600 and average Suezmax earnings was $20,000. We managed to obtain or maintain a certain number of VLCC’s on storage contracts at rates better than the spot market and other wise our east/west positions were more balanced in the quarter, which resulted in better earnings than what the spot market could provide. Positive factors in the market was that the Asian countries seems to have weathering the financial storm better than the Western world and we see a positive growth in certain countries, mainly of course China which have a huge crude oil import on demand year-on-year. VLCCs, on storage around 45 to 50 VLCCs were utilized on storage during the quarter, which was almost up to 10% of the total fleet, which also put some bottom in the earnings. The OPEC output in July slightly increased from June. All the facts as, which obviously being on the more negative side was a very high volatile, bunker prices almost 200 tons difference in the quarter alone and that’s of course can be seen when you’re burning around 80 tons to 90 tons per day on a VLCC, otherwise slide in worldwide demand and the main thing, no scrapping rates for older tonnage despite many of the single hull ships we’re trading at negative earnings. If we move to slide 18, the VLCC fleet and order book; the best news in the quarter obviously was that no new VLCCs were ordered. At the same time, there are several ongoing talks between owners, banks and shipyards and we expect further voluntary delays of ships from Q4 into Q1, 2010.…

(Operator Instructions). We will take our first question from Jon Chappell from JPMorgan.

Very impressive second quarter rates especially in your VLCCs. I’m just trying to figure out; you mentioned in your comments that your east/west balance of fleet deployment, definitely helped your rate versus maybe the Clarkston’s index, but also how many of your open days were on a maybe short-term including storage or just real short-term contracts, 30 to 60 days, that were rates that were much higher than what the spot markets were showing?

We had around eight of our VLCCs on storage business during the second quarter at rates higher than the spot market. Anything from 22 to 60 days and that’s helped out and as you mentioned we had managed to position quite a number of ships, where we could do some Transatlantic business and Northern European business, the US Gulf, which is giving better return than the usual AG/East.

On page 16 of the slide presentation where it shows your time charter coverage, that only includes the longer term contracts not the 22 to 60 days storage contracts?

That’s correct. What we define is time charter is more than six months.

Okay. So now that we’re two months into the third quarter, is that a VLCC number from the second quarter, is that similar, higher, lower for the third quarter short-term storage?

We don’t normally give any predictions going forward, but of course the present market is definitely more challenging than what the second quarter was.

Okay. That’s fair. Two other short real quick questions, on page 7 where you lay out the rates say on your fleet, I am just having a little bit of problem understanding how the Suezmax hull fleet rate was 26,800 a day where all the components of that were actually less than that number. So if the double hulls are 24,400 and the single hulls are 13,100 how is the whole fleet average higher than all those other numbers?

That’s due to the contract coverage. We have vessels on contract.

The ships on time charter are not mentioned here, this is the spot earnings ships.

I understand thanks, and one last one. The profit sharing reported in the income statement for the second quarter was about eight million. Ship Finance reported last week, it was they reported five million. What is the discrepancy in those two numbers?

Well I must say, I cannot comment on Ship Finance’s numbers.

Our numbers are correct.

Okay. So they potentially had higher profit share.

(Operator Instructions). We will take our next question from Urs Dur from Lazard Capital.

Actually, I apologize. Jon got my question. Very informative presentation, thank you very much.

(Operator Instructions). We will take our next question from [Steven Williams from Simon]. Please go ahead.

Good afternoon. We heard quite a few times about the potential for a lot of new builds planning to get canceled. When do you think that will actually become firmly apparent? When will we definitely tonnage on new vessels, clearly being canceled?

I think there are a lot of discussions going on right now and, of course this is for most of the discussion between the owner and shipyard, but obviously the shipyard will probably have similar discussion with these banks and see how much support they can get. So, I think it will be a combination of how long can you survive in a tanker market like this and if you can’t get financed and then you will probably have to travel out and see your shipyard and try and either cancel or get some kind of delays. So, I think we know that quite many of the discussions going on, but I think you will probably see more of this during the autumn and winter of this year.

[Operator Instructions]. We will take our next our next question from Anders Rosenlund from ABG SC. Please go ahead.

What’s the minimum cash balance you can have, and not including restricted cash but the 121? How low could that go?

I guess zero. I guess it’s impossible to answer that question. It really depends on the situation going forward in a way. So theoretically you can of course have zero if you earn a lot of money going forward.

Is there -- I’m sorry.

No, no. that’s fine.

Is any of this cash tied up anyway?

This 121 which you are referring to on the balance sheet, this is free cash, which is not tied up anywhere. The cash which is tied up is the restricted cash.

As we have no further questions I would like to turn the call back over to you, Mr. Jens Martin Jensen for any additional or closing remarks.

I’d just like to say thank you for everybody to listening to our presentation and dialing in and I’d like to say thank you for everybody in Frontline for contribution in the second quarter. Thank you.

That will conclude today’s conference call. Thank you for your participation ladies and gentlemen.