The result after 2nd quarter 2009 is an after tax profit of NOK 16.2 mill against a loss of NOK 90.9 mill in the same period 2008. Out of this, profit on the investment portfolio was NOK 13.6 mill against a loss of NOK 44.9 mill last year. The shipping activity gave a result of NOK 3.1 mill (NOK 12.9 mill). Gains on sale of vessels was NOK 2.6 mill (NOK 0.9 mill).

The company's fleet increased from 15 to 18 ships compared to the same period last year.  But a lower market has in spite of this increase, created a weaker shipping result. Rate USD/NOK was 7.00 the 31.12.08 and 6.38 the 30.06.09.

For the semi-ref. ships in the 12,000 to 17,000 cbm segment earnings level was 39% lower than same period in 2008 measured in USD. The market fell to a low level in 4th quarter, but improved during 1st quarter and the main part of 2nd quarter this year, due mainly to a good level of activity in petrochemical gases and ethylene out of MEG.

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 55 % lower than same period last year measured in USD. After a poor 4th quarter, the market for modern ships improved somewhat in January and February. Thereafter the market has been poor, in particular has the idle time increased, but also the rates are somewhat lower.

The company's two panmax VLGC ships of 75,000 cbm have traded in the spot market. Market development has been similar to that of the 60,000 cbm fleet, but at a slightly higher level. The company owns one vessel of 82,000 cbm "Clipper Sun" which is on TC until January 2010 at satisfactory rates.

There is still a net growth in the world fleet for large fully ref LPG above 75.000 cbm and between 20.000 cbm and 40.000 cbm vessels. This put pressure on rates for all segments of fully ref LPG vessels. There is no order book in 60,000 cbm segment, while the majority of the order book is being delivered in 2009 in 2010. Uncertainty regarding development of the world economy creates uncertainty for the market for the rest of 2009.

A weak result is expected from the fully ref vessels for the last 6 months the year, but with a possibility for an improvement in 2010.

The company had 2 ships going through periodical surveys during this period, the same as last year.

The company's fleet is fully financed with long term loans at terms entered into prior to the finance crisis. The vast majority of the long term debt is in USD at floating rate. This means that finance cost is positively influenced by the low, short term interest rates for USD.

The main focus for the company is to take advantage of cost efficient operation and favorable long term financing.

Solvang owns between 19.5 % and 30% in the vessels we manage. Our role as manager is regulated in an agreement between Solvang ASA and each ship owning company. The company is receiving an annual fee according to these agreements. The agreements are on arms length and market terms. These agreements can be defined as between related parties. Further, the company has a long term financing at market terms with a related party.

The full report for the 2nd 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 2nd quarter accounts are not audited.

The accounting principles for 2008 are described in the accounts for 2008. The accounts for 2008 were produced according to EU approved IFRS and further Norwegian information requirements according to accounting law and stock exchange regulation as required per 21.12.2008. The following new or changed standards or interpretations, which have not come into force yet, are released after the 2008 accounts were released: IFRS 1,2 and 7, IAS 39, and IFRIC 9. It is not expected that these rules will influence the reported accounts materially.

The preparation of consolidated financial statements in conformity with IFRS requires use of estimates and assumptions that affects the reported figures. The use of estimates and uncertainty connected to the use of estimates is explained in Note 1 to the group's annual accounts 2008.

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 according to the joint venture accounting method, are enclosed to the report.

Complete report including figures is enclosed.