RESULTS
Belships revenue was 2nd quarter of 2012 USD 6,481,000 (Q2 2011: USD 7,087,000), while EBITDA amounted to USD 2,345,000 (USD 2,118,000). The company's operating result was USD 1,219,000 (USD 731,000), while the total results for 2nd quarter of 2012 was USD 226,000 (USD -795,000).
Accounts for 2nd quarter of 2012 has been prepared in accordance with IAS 34 Interim Financial Reporting and are consistent with the principles applied in the annual accounts. The interim accounts have been prepared in accordance with International Financial Reporting Standards (IFRS).

MARKET
Baltic Dry Index for capesize and panamax has lately shown a strong decline. The index ended yesterday at USD 3,018 per day and USD 6,378 per day respectively. Supramax has also declined and stands currently at USD 8,956 per day. For the bulk market in total the index is 728 points, which is still above the minimum level from the beginning of February on 647 points. The indices for handysize, supramax and panamax are higher, while the capesize index is now lower than in February. Baltic's assessment of a 5 year old panamax is USD 22.1 million, whilst a similar supramax is valued at USD 21.0 million.

BUSINESS
M/S Belnor, M/S Belstar and M/S Belocean are all fixed on 10-year charters to Canpotex of Canada. Canpotex is the world's largest exporter of potash, which is a fertilizer product that is imported in large quantities by countries like China, India and Brazil. Net T/C rate is USD 16,000 per day, which is a good rate in today's market. M/T Belaia is chartered to J. Lauritzen AS in Denmark until March 2014 at a net rate of USD 12,840 per day. We still have call option and options to extend the inbound charter for 1+1+1 years, i.e. from March 2014 onwards.
All ships have sailed without significant downtime and operating costs as per 30 June is on budget. Technical management of owned tonnage is handled by Belships Management (Singapore), which has full technical management of a total of 19 vessels.

FINANCIAL AND OTHER MATTERS
At 30 June, the Group's liquidity reserves totaled USD 14.7 million, compared to USD 14.5 million as per 31 March.
The company's debt was USD 55.6 million as per 30 June and decreased by USD 1.3 million during the 2nd quarter.
Belships ASA owns 20 % of its own bond loan. Outstanding bond loan to external lenders was 61.8 million as per 30 June. NOK 25 million was repaid in early July. The remaining balance is due in July 2013. The bond loan is hedged against the USD.
Impairment tests for the company's assets are performed in accordance with IAS 36. The vessels are valued based on observable market values, and charter parties entered into. Based on these internal valuations, there is no need to write down the company's ship investments as per 30 June 2012.
At the end of the 2nd quarter of 2012, book value per share was NOK 12.76, while the equity ratio was 42.5%.
Canica AS sold on 3 July its stake in Belships of 22.98% to Tidships AS.

OUTLOOK
Record large stockpiles of coal in China in combination with a large excess supply of ships can send bulk rates further down. Growth in electricity consumption in China is the lowest in three years. 75% of the electricity in China is generated from coal-fired power plants, but we are seeing a transition to other energy sources, including hydropower. The reduced demand from China will hurt the panamax rates in particular, since coal is the main commodity for this ship size. The order book as a percentage of the existing fleet is largest for panamax and capesize.
The situation in India may ease this situation. India has only limited stocks of coal, but has steadily growing import needs to ensure the electricity supply.
New orders for bulk carriers for delivery in 2014 have picked up, and we expect that these are ships with eco-design that have significantly lower fuel consumption.
Belships' vessels are sailing on long-term charters to a very reputable counterpart, and short-term market fluctuations will not affect the company's earnings and cash flow. Existing charters represent future revenues of USD 145 million.
The focus going forward will be to develop Belships ASA as tonnage provider of modern bulk carriers to good counterparts. The aim is to build up a portfolio of ships and charters that will provide a steady return but also reducing the residual risk exposure through duration spread. There will be many opportunities ahead to acquire quality tonnage, and we are actively working to develop new projects.

Oslo, 16 August 2012

The Board of BELSHIPS ASA

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Belships ASA : Report 2nd quarter 2012
RESULTS Belships revenue was 2nd quarter of 2012 USD 6,481,000 (Q2 2011: USD 7,087,000), while EBITDA amounted to USD 2,345,000 (USD 2,118,000). The company's operating result was USD 1,219,000 (USD 731,000), while the total results for 2nd quarter of 2012 was USD 226,000 (USD -795,000). Accounts for 2nd quarter of 2012 has been prepared in accordance with IAS 34 Interim Financial Reporting and are consistent with the principles applied in the annual accounts. The interim accounts have been prepared in accordance with International Financial Reporting Standards (IFRS). MARKET Baltic Dry Index for capesize and panamax has lately shown a strong decline. The index ended yesterday at USD 3,018 per day and USD 6,378 per day respectively. Supramax has also declined and stands currently at USD 8,956 per day. For the bulk market in total the index is 728 points, which is still above the minimum level from the beginning of February on 647 points. The indices for handysize, supramax and panamax are higher, while the capesize index is now lower than in February. Baltic's assessment of a 5 year old panamax is USD 22.1 million, whilst a similar supramax is valued at USD 21.0 million. BUSINESS M/S Belnor, M/S Belstar and M/S Belocean are all fixed on 10-year charters to Canpotex of Canada. Canpotex is the world's largest exporter of potash, which is a fertilizer product that is imported in large quantities by countries like China, India and Brazil. Net T/C rate is USD 16,000 per day, which is a good rate in today's market. M/T Belaia is chartered to J. Lauritzen AS in Denmark until March 2014 at a net rate of USD 12,840 per day. We still have call option and options to extend the inbound charter for 1+1+1 years, i.e. from March 2014 onwards. All ships have sailed without significant downtime and operating costs as per 30 June is on budget. Technical management of owned tonnage is handled by Belships Management (Singapore), which has full technical management of a total of 19 vessels. FINANCIAL AND OTHER MATTERS At 30 June, the Group's liquidity reserves totaled USD 14.7 million, compared to USD 14.5 million as per 31 March. The company's debt was USD 55.6 million as per 30 June and decreased by USD 1.3 million during the 2nd quarter. Belships ASA owns 20 % of its own bond loan. Outstanding bond loan to external lenders was 61.8 million as per 30 June. NOK 25 million was repaid in early July. The remaining balance is due in July 2013. The bond loan is hedged against the USD. Impairment tests for the company's assets are performed in accordance with IAS 36. The vessels are valued based on observable market values, and charter parties entered into. Based on these internal valuations, there is no need to write down the company's ship investments as per 30 June 2012. At the end of the 2nd quarter of 2012, book value per share was NOK 12.76, while the equity ratio was 42.5%. Canica AS sold on 3 July its stake in Belships of 22.98% to Tidships AS. OUTLOOK Record large stockpiles of coal in China in combination with a large excess supply of ships can send bulk rates further down. Growth in electricity consumption in China is the lowest in three years. 75% of the electricity in China is generated from coal-fired power plants, but we are seeing a transition to other energy sources, including hydropower. The reduced demand from China will hurt the panamax rates in particular, since coal is the main commodity for this ship size. The order book as a percentage of the existing fleet is largest for panamax and capesize. The situation in India may ease this situation. India has only limited stocks of coal, but has steadily growing import needs to ensure the electricity supply. New orders for bulk carriers for delivery in 2014 have picked up, and we expect that these are ships with eco-design that have significantly lower fuel consumption. Belships' vessels are sailing on long-term charters to a very reputable counterpart, and short-term market fluctuations will not affect the company's earnings and cash flow. Existing charters represent future revenues of USD 145 million. The focus going forward will be to develop Belships ASA as tonnage provider of modern bulk carriers to good counterparts. The aim is to build up a portfolio of ships and charters that will provide a steady return but also reducing the residual risk exposure through duration spread. There will be many opportunities ahead to acquire quality tonnage, and we are actively working to develop new projects. Oslo, 16 August 2012 The Board of BELSHIPS ASA This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Report 2nd quarter 2012 Presentation 2nd quarter 2012