Good day, and welcome to the Frontline first quarter 2008 results presentation conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to your speaker today, Mr. Jens Martin Jensen. Please go ahead.

Good morning, and welcome to Frontline Q1 2008 financial presentation. My name is Jens Martin Jensen; I am the interim CEO of Frontline. I am 44 years old, I am married and I have five children. Until last week, I was working for the company in Singapore. The program for this presentation will be that our CFO, Inger Klemp, will go through the financials and the highlights of the first quarter. Thereafter, I will be talking a little bit about the market. After that, we will be taking your questions. Thank you. Inger, please.

Okay. Thanks, Jens. Hello, good morning. I will guide you quickly through the major transactions and the financial highlights in the first quarter 2008. So please would you move to slide four. We invested $20 million in Navig8 in February 2008. Navig8 controls approximately 30 vessels including newbuildings, and are actively trades the time-charter fleet. The investment should be considered as purely financial from Frontline's point of view, but gives also Frontline at the same time a foothold in the clean petroleum product market. In February, we spun off 17.5% on ITCL to the Frontline shareholders, and we listed the company on the OTC exchange in Oslo. In March, Frontline announced that together with companies indirectly controlled by Mr. John Fredriksen, our main shareholder, it had 9.7% holder in OSG, and on May 20 we filed a Schedule 13D saying that companies indirectly controlled by Mr. John Fredriksen had reduced their holding to approximately 245,000 shares. The aggregate holding as of May 20, for Frontline and companies, then indirectly controlled by Mr. John Fredriksen amounts now to 1,794,900 shares, corresponding to 5.2% ownership. In April 2008, we announced that we had entered into contract with Zhoushan Jinhaiwan Shipyard in China for delivery of four VLCC's newbuildings for delivery in the second half of 2011. The contract price for these vessels will be $135 million each. In May 2008, we declared options for further two similar VLCC newbuildings at the same yard and at the same contract price for delivery in the first half of 2012. The single hull Suezmax Front Maple was sold in January 2008 by Ship Finance and the charter with Frontline has terminated. Frontline has recognized a gain in the first quarter of 2008 of approximately $17.1 million related to the termination of that lease. Further, inline…

Thank you, Inger. I think we are now on slide number 16, which has to do with the market update and earnings. As you can see from the red graph, first quarter 2008 was a very volatile quarter, but at the same time, the average was quite firm. As Inger said, the earnings from VLCCs was around $100,000 a day and Suezmaxes around $50,000. This market really kicked off at the end of 2007, when the Saudi producers start giving a huge discount to mainly U.S destinations, which gave about a long haul turn mile which started the market. Subsequently, we have seen the Chinese oil imports rising quite a lot, and the increased activities for the East. At the same time, we have seen big new movements from mainly Venezuela East, where before we would have seen two, three shipments per month, now we are around 12, 15 which, of course, is again very positive for the long haul market. We have put in a little bit about stock building. We believe that China has been adding extra imports, maybe to build up some stocks before the Olympics should they decide to maybe, use a little bit less coal for pollution reasons. The strikes at Lavera again happened around March this year. The French people are normally very good at striking around their holidays and they have done this for the last 10 years in a row now. However, this has been very positive for the Suezmax market. At the same time, we have seen quite unusual storage activities in Iran. Right now, there seem to be at least 12 VLCCs storing in high sulphur crude, which they have not been able to sell in the market. Normally they sell quite a big volume to the Far East buyers…

Thank you. (Operator instructions). Our first question will come from Mr. Jon Chappell from JPMorgan. Please go ahead.

Thank you, good afternoon. Jens and Inger, Frontline has historically sold vessels, sell and purchase market has been very good to you, and you mentioned both, the press release and in your comments that your newbuildings could get much stronger prices in the current market to what you paid for them. What is your plan with the newbuilds, especially as you add more VLCCs and exercise some options? Do you think the Frontline will essentially; ultimately take deliver of all those assets? Or do you think that both ?

Well, if I have may reply, when we started to enter into a more aggressive newbuilding program, it is of course to replace our second house fleet and we have so far, so loud around 5 or 6 VLCCs and of course 7, 8 Suezmaxes, which has been sold to conversion into heavy lift. So our main idea right now is to replace our remaining single hulls with double hulls, but of course, at the same time as you say that is a quite a big potential in these values of the ships and maybe it is the right decision to sell out, capitalize on the market. And maybe challenge that we are constantly monitoring this process and we are looking at all possibilities. Thank you.

(Operator Instructions). As we have no further questions, I think we have another question from HBK. Go ahead.

Hello, I was wondering what is the net cash impact from the heavy lift vessels you will deliver to Dockwise will be in the second quarter?

Well, we have not the given specific information about that, but obviously we will deliver the two large vessels as per the plan the second quarter. One is already delivered, and the second one will eventually be delivered towards the end of the quarter. We will then have a book gain in connection with that, which is calculated approximately $106 million, whereof, $73 million will be contingent upon the delivery of last heavy lift vessel. The gain is calculated on the basis of both the gain related to each of the vessels delivered, but also it is calculated on the basis of deferred gain, which we have not been able to record until we are delivering the last vessel. That is why last vessel, we have come to $160 million. However, this is a book gain to start with. At the same time, of course, when we are delivering these two vessels to Dockwise, we will receive $80 million in total, repayment of the seller's credit which we extended to Dockwise in connection with the sale back in March 2007. At the same time as well, we also will have of course some correlation costs which we also have paying and that we will do. So, the effects will be the balance of that.

Roughly how big is the net cash effect?

Related to that quarter. Well related to the delivery of those two vessels, I would say, maybe $30 million if we think if that is credit left there with still the remaining expenses.

Yes. Okay. Or I should see you or when do you plan to report first quarter numbers?

We have not set the date yet, but it will be within May.

Okay. Also in the balance sheet, you said that newbuildings is $199 million. In this presentation, you said that you have paid them $146 million for the newbuildings. What is the difference?

What is the difference between 199 and the installments paid?

Yes

Okay. We have some payments made on heavy lift in this well, as you know the conversions.

Okay. Thanks a lot.

Okay.

Now we have another question from Jon Chappell from JPMorgan. Please go ahead.

Thanks. My line was cut off last time.

We are sorry.

I hope you heard my first question I did not hear the answer tough.

It was a very good answer, I could say that. Do you want to hear again?

Please. I never heard.

Yes. I think your question was about potential asset gain if we were to sell this newbuildings. As I mentioned that I mentioned that when we order these ships, it is the cost to replace the single hulls as they phase out or get soon out. However, we are always looking for opportunities. Sometimes it is good to sell and make a profit, maybe chatter against it. So we are constantly looking at what to do and we will not exclude that we will sell some of the ships. However, as of now, we have not decided that yet.

Okay. You will forgive me if these all questions were asked because I did not hear anybody else's question. Just question on the Nordic American tanker chatter, and what is the length of those contracts and as far as the accounting is concerned is it a loss between revenue and Charterhire expense, or they are basically the same number?

Accounting wise, the Charterhire expense and revenue is approximate the same number, yes.

Okay.

The duration is one. It is a renewable rolling one-year deal.

Okay. Finally Inger is there an updated drydocking schedule for the second quarter through the fourth quarter this year?

No. However, for the second quarter I think will drydock three vessels. Jens, I do not remember actually, unions?

No, but of course in this high market we are trying differ as much as possible. We have three dockings under way, and this will be done in the second quarter, and we are not finalized the planning for the third and the fourth quarter yet. However, this has to do with of course stock availability and when we see the right timing to do it.

Alright. The vessels in the second quarter are those days leased or are still as our?

Both.

Both are.

Okay. That is all I had. Thanks Jens and Inger.

Thank you.

Okay.

(Operator Instruction). Sir, we have no further questions and I would like to turn the call over back to Mr. Jensen.

Yes. Thank you very much for tuning and listening in. The Q1 has been a very quarter for the Company. We feel we are strongly in to the second quarter. We are quiet far into the second quarter. Things are looking very well. We are very optimistic about going forward in the market. We know that in most financial volume in a bit of turmoil. Of course, the higher oil price is potentially looking at dampen certain countries. At the same time, we believe that there could be further reduction of oil coming out of Opex. We see a big productions potentially coming out of West Africa and as well as, in the Mediterranean and these we will be going to each destination. So we are quite confident going forward. Thank you. Thank you for listening. Thank you.

Thank you. This will conclude today's conference call. Thank you for your participation. Ladies and gentlemen, you may now disconnect.