The result for 1st quarter 2009 is an after tax loss of NOK 7.8 mill against a loss of NOK 39.5 mill in 1st quarter 2008. Out of this, loss on the investment portfolio was NOK 6.1 mill against a loss of NOK 45.2 mill last year. The shipping activity gave a result of NOK 2.1 mill against NOK 7 mill in 1st quarter 2008. Gains on sale of vessels was NOK 2.6 mill.

 

The company's fleet increased from 13 to 18 ships compared to the same period last year.  But a lower market in all segments has in spite of this increase, created a weaker shipping result. Rate USD/NOK was 7,00 the 31.12.08 and 6,68 the 31.03.09

 

For the semi-ref. ships in the 12,000 to 17,000 cbm segment earnings level was 35% lower than same period in 2008 measured in USD. The market fell to a low level in 4th quarter, but improved during 1st quarter this year due mainly to a good level of activity in petrochemical gases and ethylene out of MEG. The earnings level was 37% higher in 1st quarter 2009 compared to 4th quarter 2008. It is expected that 2nd quarter will show somewhat lower earnings. The drop in the world economy combined with a net increase in the world fleet creates uncertainty for the market for the rest of 2009.

 

For the ships in the 60,000 cbm segment earnings level was 37 % lower than same period last year measured in USD. After a poor 4th quarter, the market for modern ships trading LPG in the Atlantic and onAmerica improved somewhat in January and February. In March and April the market again fell back due to more idle time and lower rates. 

There has been a considerable net growth in the net world fleet for large fully ref LPG vessels due to a substantial new building program in the VLGC segment in 2008 and 2009. A weak market for the VLGC vessels out of MEG has resulted in more of these ships being transferred to the Atlantic basin and putting pressure on rates for the LGC vessels. Uncertainty regarding development of the word economy, creates uncertainty for the market for the rest of 2009. It is expected that 2nd quarter will show lower earnings.

 

The company's two panamax VLGC ships of 75.000 cbm have traded in the spot market at unsatisfactory rates, but higher than the general market levels. The company owns one vessel of 82.000 cbm which is on a 12 months TC at satisfactory rates.

 

The company had 1 ship going through periodical surveys against 2 last year.

 

The company took delivery of 7 new buildings in 2008 and the last new building in our program was delivered 5th January 2009. All new buildings are fully financed with long terms loan facilities. The company has not entered into any derivative contracts or other financial instruments where counterparty risk is an issue.

 

The full report for the 1st quarter 2009 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 2008. The 1st 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 5th of May 2009

Solvang ASA

Board of Directors

 

The full report including figures is enclosed