The result after 1st quarter is an after tax loss of NOK -39.4 mill (NOK 9.3 mill). Out of this unrealised loss on the investment portfolio was NOK -45.6 mill (NOK 0.3 mill).

The shipping activity gave a profit of NOK 7 mill (NOK 6.2 mill).

Smaller ownership shares in ships managed by other ship owners are booked using the fair value method. Change in market value for these shares influences the profit and loss account directly and reduced the result from the shipping activities by NOK -3.6 mill (NOK -2.3 mill).

 

The company had 2 ships going through periodical surveys compared to 1 last year.

 

For the semi-ref. ships in the 12,000 to 17,000 cbm segment earnings were 28 % better than for the same period in 2007 measured in USD. There has been good activity in petrochemical gases, especially ethylene. The company's new buildings of 17.000 cbm are yielding good results in this market. A firm market is expected for the rest of 2008.

 

For the ships in the 50,000-60,000 cbm segment earnings were 18 % lower than in the same period last year measured in USD. There has been some increased competition from VLGC vessels. The VLGC segment sees increased capacity due to deliveries of new buildings combined with somewhat lower activity out of AG. At the same time the price level between regions have not encouraged long haul transportation of LPG and consequently we have seen lower ton miles both east and west of Suez. There is some uncertainty for the market development for the rest of 2008.

 

The Norwegian krone has strengthened 15% towards USD compared to same period last year. This has a negative effect on the company's earnings.

 

Solvang is in the process of establishing a marketing operation for our fully ref vessels of 60.000 cbm, 75.000 cbm and 82.000 cbm. Included in this process is possible cooperation with other owners. Solvang has 3 new buildings of 60.000 cbm that will be delivered in 2008. This makes the total fleet for Solvang in this segment to 8 ships. We also have 2 new buildings of 75.000 cbm that will be delivered in 2008 and 2009.

 

In addition to this the company took delivery the 30th April of a 82.000 cbm new building. The vessel has been given the name "Clipper Sun". The ship was not part of our own new building program, but a resale of an existing contract made by the seller.

 

In 2007 the company took delivery of the two first new buildings "Clipper Hebe" and "Clipper Helen". Both LPG/ethylene ships of 17,128 cbm. from Meyer Werft, Germany. The company will take delivery of two sister ships from the same yard in July and October this year.

 

In our report for the 4th quarter we informed that the new transfer rules from the old to the new tax regime for shipping companies would impose a tax liability for the daughter company Solvang Shipping AS of NOK 48 mill, which can be reduced by a third by allowing for environment friendly investments. The tax shall be paid in equal annual instalments over ten years. In the accounts for 2007 is booked tax cost at an NPV amount of NOK 38.6 mill. The group's tax cost will therefore be minimal going forward, but there will be a negative annual liquidity effect of NOK 3.2 mill.

 

The board has decided to put all ships into the new tonnage tax regime. Vessels owned under the old regime are transferred to the new regime as per 1. January 2007.

 

The report for the 1st quarter 2008 is presented according to IAS 34 Interim Financial Reporting, and is consistent with current IFRS standards and the interpretation of these as they exist today.

 

Present accounting principles do not, in the board's opinion, give full and extensive information about the company's main activity. Therefore the profit and loss account and the balance sheet, where the company's interest in shipping partnerships are included in the accounts after the joint venture accounting method, are included.

 

 

Stavanger 5th of May 2008

Board of Directors

Solvang ASA

 

The full report including figures is attached on www.newsweb.no