Solvang ASA Company disclosures

The result after 3rd quarter is an after tax loss of NOK -147,1 mill against a profit of NOK 25,7 mill. Out of this loss on the investment portfolio was NOK -81,4 mill (NOK 12,9 mill).

The shipping activity gave a profit of NOK 13.9 mill (NOK 29,5 mill) including profit on sale of vessels of NOK 0,9 mill (NOK 21,1 mill).

The company has always held a substantial part of its liquidity in a diversified portfolio of stocks and shares. The negative development at the Oslo Stock Exchange has therefore had a negative effect on the company's result, mainly due to unrealised loss on the portfolio. The board is of the view that it would not be correct to change the portfolio strategy at this point in time.

The company has taken delivery of 5 new buildings during 2nd and 3rd quarter as well as 1 in October. The start up cost for these vessels has been booked as cost in the accounts has a negative impact on the accounts. Adjusted for these cost and profit on sale of ships, the result from the shipping operations is better in 2008 than in 2007.

For the semi-ref. ships in the 12,000 to 17,000 cbm segment earnings were 15 % better than for the same period in 2007 measured in USD. There was a good level of activity in petrochemical gases and ethylene up to and including July. In August and September the negative development in the world economy has reduced in a lower activity in transportation of petrochemical gases. It is expected lower results from this segment in 4th quarter.

For the ships in the 50,000-75,000 cbm segment earnings were 14 % lower than in the same period last year measured in USD. The market for modern ships trading in LPG there has been good in the Caribbean and through the Panama Canal to the west coats of South- and Central America. However, as from August the market for NH3 has been weak due to lower volumes being available for transportation. Uncertainty regarding the development of the world economy and the energy prices, combined with a weak VLGC- market creates uncertainties for the market development for the rest of 2008.

The company had 2 ships going through periodical surveys compared to 4 last year.

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

Out of the series of 3 new buildings of 60.000 cbm, we took delivery of vessel no 2 in August. The last vessel will be delivered in November.

The last of the 2 new buildings of 75.000 cbm will be delivered in January 2009.

The last in the series of 4 LPG/Ethylene ships of 17.000 cbm at Meyer Werft, was delivered in October.

The company has in total 10 new buildings out of Germany and South Korea that have been or are being delivered in 2007, 2008 and 2009.

All new buildings are fully financed with long terms facilities. The ongoing crisis in the financial markets does not have an effect on the company's ability to take delivery of the new building program.

Neither has the company entered into any derivative contracts or other financial instruments where counterparty risk is a problem.

As reported for the 2nd quarter, there has been a constant change in and backdating of the rules for entering the new tonnage tax regime. The board therefore reversed its decision made in the 1st quarter regarding putting all ships into the new tonnage tax regime. A decision regarding the new regime has not yet been made. Tax as per 3rd quarter is therefore calculated based on ordinary corporate tax regime including reversing the booking of deferred tax as was done in the accounts for 31.12.2007.

The full report for the 3rd quarter 2008 is presented according to IAS 34 Interim Financial Reporting. The accounts do not include all information that is needed for full annual accounts and should be read together with the full accounts for 2007. The 3rd quarter accounts are not audited.

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 enclosed to the report.

Report pr 3rd quarter 2008
The result after 3rd quarter is an after tax loss of NOK -147,1 mill against a profit of NOK 25,7 mill. Out of this loss on the investment portfolio was NOK -81,4 mill (NOK 12,9 mill). The shipping activity gave a profit of NOK 13.9 mill (NOK 29,5 mill) including profit on sale of vessels of NOK 0,9 mill (NOK 21,1 mill). The company has always held a substantial part of its liquidity in a diversified portfolio of stocks and shares. The negative development at the Oslo Stock Exchange has therefore had a negative effect on the company's result, mainly due to unrealised loss on the portfolio. The board is of the view that it would not be correct to change the portfolio strategy at this point in time. The company has taken delivery of 5 new buildings during 2nd and 3rd quarter as well as 1 in October. The start up cost for these vessels has been booked as cost in the accounts has a negative impact on the accounts. Adjusted for these cost and profit on sale of ships, the result from the shipping operations is better in 2008 than in 2007. For the semi-ref. ships in the 12,000 to 17,000 cbm segment earnings were 15 % better than for the same period in 2007 measured in USD. There was a good level of activity in petrochemical gases and ethylene up to and including July. In August and September the negative development in the world economy has reduced in a lower activity in transportation of petrochemical gases. It is expected lower results from this segment in 4th quarter. For the ships in the 50,000-75,000 cbm segment earnings were 14 % lower than in the same period last year measured in USD. The market for modern ships trading in LPG there has been good in the Caribbean and through the Panama Canal to the west coats of South- and Central America. However, as from August the market for NH3 has been weak due to lower volumes being available for transportation. Uncertainty regarding the development of the world economy and the energy prices, combined with a weak VLGC- market creates uncertainties for the market development for the rest of 2008. The company had 2 ships going through periodical surveys compared to 4 last year. The NOK has strengthened xx% towards USD compared to same period last year. This has a negative effect on the company's earnings. Out of the series of 3 new buildings of 60.000 cbm, we took delivery of vessel no 2 in August. The last vessel will be delivered in November. The last of the 2 new buildings of 75.000 cbm will be delivered in January 2009. The last in the series of 4 LPG/Ethylene ships of 17.000 cbm at Meyer Werft, was delivered in October. The company has in total 10 new buildings out of Germany and South Korea that have been or are being delivered in 2007, 2008 and 2009. All new buildings are fully financed with long terms facilities. The ongoing crisis in the financial markets does not have an effect on the company's ability to take delivery of the new building program. Neither has the company entered into any derivative contracts or other financial instruments where counterparty risk is a problem. As reported for the 2nd quarter, there has been a constant change in and backdating of the rules for entering the new tonnage tax regime. The board therefore reversed its decision made in the 1st quarter regarding putting all ships into the new tonnage tax regime. A decision regarding the new regime has not yet been made. Tax as per 3rd quarter is therefore calculated based on ordinary corporate tax regime including reversing the booking of deferred tax as was done in the accounts for 31.12.2007. The full report for the 3rd quarter 2008 is presented according to IAS 34 Interim Financial Reporting. The accounts do not include all information that is needed for full annual accounts and should be read together with the full accounts for 2007. The 3rd quarter accounts are not audited. 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 enclosed to the report. Stavanger 29th of October 2008 Solvang ASA Board of Directors The full report including figures is enclosed.
Report pr 3rd quarter 2008