Fourth-Quarter and Full-Year Results

Frontline reported very strong fourth-quarter and full-year results on Feb 14. Fourth-quarter income jumped more than 50% to $202.3 million. Full-year income was also up nicely as well, increasing 11% and advancing to $574.4 million. Full-year earnings were up to $7.68 per share from earnings of $6.90 per share in fiscal 2006.

Frontline noted that the day rates it charges for all three classes of its carriers increased from just the last quarter, a reflection of the demand the company is experiencing for its services. Frontline said that its VLCCs, Suezmax tankers and Suezmax OBO carriers were priced at $45,700, $33,100 and $42,400, respectively compared with $36,000, $25,000 and $41,300 respectively in the third quarter.

Frontline also noted that it currently carries a total of $819.9 million of cash and cash equivalents.

Rising Estimates

In reaction to the solid fourth-quarter and full-year results and the favorable pricing environment, the analyst community has upgraded their earnings projections. The current-quarter estimate has jumped from $1.77 per share 90 days ago to its current projection of $2.64 per share. The next-year estimate has also received significant upgrades, advancing from $2.84 90 days ago to its current projection of $4.24 per share.

Another attractive component of Frontline shares is the fat dividend that the company likes to pay. In the fourth quarter, based upon the strong results, Frontline paid a $2.00 dividend per share owned.

No only is Frontline carrying attractive growth and momentum characteristics, it also has reasonable valuations. With its next-year earnings projected at $4.24 per share, this company carries a forward P/E multiple just a pinch below 13X.

The Chart

And finally, as previously mentioned, the company's stock price has been performing. In just the last three months share of FRO have returned over 60%. On a slightly longer term basis, looking back to last June, the company's stock has broken above a downward sloping trend-line that had been pressuring its share price. With this level effectively breached, the next target is the 52-week and all-time high, just above $64. Take a look at the chart below and the nice breakout that has just recently occurred.

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Remploy's Frontliner / CR1 Ensemble is the ideal solution for all emergency services working within a highly contaminated CBRN environment. It provides a high level of fire retardency, and ruggedness, in a breathable garment system that is easily donned and comfortable to wear. The Frontliner / CR1's non-encapsulating, ant-static three-layer ensemble consists of the inner Cooler layer, intermediate Britannia layer, and the outer Peeler layer:

--  PL001730 (Outlast - cooler layer trousers)
--  PL01830  (Outlast - cooler layer top)
--  PL002310 (Peeler - outer layer)
--  PL002410 (Britannia - carbon layer)

This certified ensemble also consists of specially chosen CBRN protective components that include: gloves, boots, SCBA / mask, all as part of the integrated system. These items are all readily available from Remploy as part of its unique one-stop, fully integrated offering that is designed to easily provide its customers with a leading edge solution to CBRN protection.

According to John Armstrong, Global Business Manager: "The SEI's recent NFPA approval demonstrates three things: first, Remploy continues to develop PPE solutions that exceed customer expectations in the fire and emergency services. Second, Remploy's PPE is virtually future proof because we listen to our customers and can correctly anticipate their needs, which is reflected in our products. Third, Remploy's PPE is integral to the overall end user safety and efficiency in the field.

"Remploy's solutions are continually being tried and tested, proving that its lightweight permeable ensemble enhances maneuverability and reduces body burden, while extending the length of time the washable / launderable product can remain in use."

This approval allows Remploy Frontline to use the coveted SEI Certification Mark in the marketing, packaging and promoting of the approved Frontliner CBRN Ensemble -- in accordance with the provisions of the SEI Certification Programme Manual. This helps to reinforce Remploy's new branding initiative: "Remploy - Survival Evolution."

About Remploy Frontline Ltd.

Remploy Frontline is an international leader in the design, development and manufacture of CBRN protection suits, life jackets and performance textiles. With a strong corporate focus on technology, Remploy Frontline combines a dedicated team of product development, customer service, manufacturing and management personnel to deliver solutions to customers around the world.

The Remploy Group was set up under the 1944 Disabled Persons (Employment) Act by Ernest Bevin, then Minister of Labour in the United Kingdom. Since then Remploy has developed a highly successful factory network throughout the United Kingdom, operating across a diverse range of businesses including automotive, e-cycling, furniture, healthcare, household & toiletries, office services, packaging, printing, electronics and textiles. Continuing their founding philosophy, last year Remploy helped over 5,000 disabled people into sustainable employment.

PRESS CONTACT:
Qui Diaz
Livingston Communications
703.894.5460
qui@livingstonbuzz.com

SOURCE: Remploy Frontline

mailto:qui@livingstonbuzz.com

In the second phase, BT Frontline will provide the platform for computerized billing process in 24 additional branches. NEA also plans to implement a centralized billing system and Interactive Voice Response system that will allow consumers with more options such as the ease in making payments at any branches and more modes of payments such as credit cards.

This will improve the accuracy of billing consumers, meter readings and revenue accounting. NEA will be able to give transparency to consumers as well as provide higher quality and reliable customer services.

The benefits are not only extended to consumers. NEA will also be able to benefit from this project such as it will reduce non-technical losses, increase in revenue collection, and save on overall operational expenses such as cutting traveling time.

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The acquisitions and chartering-in of the vessels will contribute to further consolidation in the suezmax market. This also confirms Frontline's regained position as the world's largest operator and owner of double hull Suezmax tonnage in addition to its position as the world's largest independent operator and owner of double hull VLCC tonnage.

Frontline's commitment to acquire the five double hull Suezmax tankers and to charter-in further five, confirms the Board's firm belief in the future prospects in the tanker market.

Chairman John Fredriksen says in a comment:

"We have for several months looked for ways to increase Frontline's exposure to the strong tanker market. Suezmax rates and values have lagged the VLCC development during the last months, and provide thereby better value. The two deals will increase Frontline's exposure in the double hull Suezmax market from nine to 19 units, in addition to its eight Suezmax newbuildings to be delivered in 2009/2010. The deals should be seen as an opportunistic investment approach where the first fixtures in the current strong market will take down the financial risks, while upside for shareholders remains significant."

June 24, 2008
The Board of Directors
Frontline Ltd.
Hamilton, Bermuda
Questions should be directed to:
Jens  Martin  Jensen:  Acting  Chief  Executive  officer,   Frontline
Management AS
                       +47 23 11 40 99
Inger M. Klemp: Chief Financial Officer, Frontline Management AS
                        +47 23 11 40 76

Forward Looking Statements

This press release contains forward looking statements. These statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including Frontline management's examination of historical operating trends. Although Frontline believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond its control, Frontline cannot give assurance that it will achieve or accomplish these expectations, beliefs or intentions.

Important factors that, in the Company's view, could cause actual results to differ materially from those discussed in this press release include the strength of world economies and currencies, general market conditions including fluctuations in charter hire rates and vessel values, changes in demand in the tanker market as a result of changes in OPEC's petroleum production levels and world wide oil consumption and storage, changes in the Company's operating expenses including bunker prices, drydocking and insurance costs, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, and other important factors described from time to time in the reports filed by the Company with the United States Securities and Exchange Commission.

Copyright Copyright Hugin AS 2008. All rights reserved.

SOURCE: Frontline Ltd.