Solvang ASA Company disclosures

The result for 2009 is an after tax profit of NOK 133.5 mill against a loss of NOK 151.6 mill in 2008. Out of this, profit on the investment portfolio was NOK 42.1 mill against a loss of NOK 123.4 mill last year. The shipping activity gave a negative result of NOK 48.5 mill against a loss of NOK 19.2 mill last year. Reversal of deferred, not payable taxes gave a positive result of NOK 141.6 mill. Given the uncertainty in the market conditions, the board proposes not to pay dividends for 2009.

The positive result from the investment portfolio is mainly due to unrealised gain on the portfolio. The result from the shipping activity was not satisfactory. In addition to a weak market, the result was negatively influenced by profit on asset sales and write downs of NOK 19 mill against 12.9 mill in 2008, Rate of USD/NOK was 7.00 the 31.12.08 and 5.78 the 31.12.09.

The considerable reversal of deferred not payable taxes is caused by the following: Profit on investment which for tax purposes is treated according to the tax exemption method. Tax effects of translation differences related to functional currency, as well as entering as income and asset deferred taxes from 2008.

For the semi-ref. ships in the 12,000 to 17,000 cbm segment earnings level was 39 % lower than in 2008 measured in USD. The market was at an acceptable level during the first six months. But reduced activity and a net increase in the world fleet has influenced earnings negatively in the second half of 2009.

The increase in the world fleet in 2010 and partly in 2011, together with reduced growth in cargo volumes in some markets, creates uncertainty for the ethylene and semiref markets for 2010.

For the ships in the 60,000 cbm segment earnings level was 60 % lower than same period last year measured in USD. During the 1st quarter the market was satisfactory. Thereafter the market has been poor, in particular has the idle time increased, but also the rates are lower.

For the company's two panmax VLGC ships of 75,000 cbm, the market development was similar to that of the 60,000 cbm fleet, but at a slightly higher level until the October. In the 4th quarter earnings improved and it is expected a somewhat better result from this segment compared to the LGC-segment. The company owns one vessel of 82,000 cbm the "Clipper Sun" which trades in the spot market after having completed a 12 month TC in January 2010 at satisfactory rates. The spot market is weak.

There is still a net growth in the world fleet for large fully ref LPG vessels 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. There is no order book in 60,000 cbm segment. There is still VLGC ships to be delivered in 2010, but there is expected scrapping of a similar number. An anticipated growth in demand is therefore expected to create a better balance between supply and demand and thereby a firmer market in the 2nd half of 2010.

The company had 3 ships going through periodical surveys during 2009, while the figure was 4 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.

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 4th 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 4th 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 according to the joint venture accounting method, are enclosed to the report.

Stavanger 10th of February 2010

Board of Directors

Solvang ASA

Report per 4th Quarter 2009
The result for 2009 is an after tax profit of NOK 133.5 mill against a loss of NOK 151.6 mill in 2008. Out of this, profit on the investment portfolio was NOK 42.1 mill against a loss of NOK 123.4 mill last year. The shipping activity gave a negative result of NOK 48.5 mill against a loss of NOK 19.2 mill last year. Reversal of deferred, not payable taxes gave a positive result of NOK 141.6 mill. Given the uncertainty in the market conditions, the board proposes not to pay dividends for 2009. The positive result from the investment portfolio is mainly due to unrealised gain on the portfolio. The result from the shipping activity was not satisfactory. In addition to a weak market, the result was negatively influenced by profit on asset sales and write downs of NOK 19 mill against 12.9 mill in 2008, Rate of USD/NOK was 7.00 the 31.12.08 and 5.78 the 31.12.09. The considerable reversal of deferred not payable taxes is caused by the following: Profit on investment which for tax purposes is treated according to the tax exemption method. Tax effects of translation differences related to functional currency, as well as entering as income and asset deferred taxes from 2008. For the semi-ref. ships in the 12,000 to 17,000 cbm segment earnings level was 39 % lower than in 2008 measured in USD. The market was at an acceptable level during the first six months. But reduced activity and a net increase in the world fleet has influenced earnings negatively in the second half of 2009. The increase in the world fleet in 2010 and partly in 2011, together with reduced growth in cargo volumes in some markets, creates uncertainty for the ethylene and semiref markets for 2010. For the ships in the 60,000 cbm segment earnings level was 60 % lower than same period last year measured in USD. During the 1st quarter the market was satisfactory. Thereafter the market has been poor, in particular has the idle time increased, but also the rates are lower. For the company's two panmax VLGC ships of 75,000 cbm, the market development was similar to that of the 60,000 cbm fleet, but at a slightly higher level until the October. In the 4th quarter earnings improved and it is expected a somewhat better result from this segment compared to the LGC-segment. The company owns one vessel of 82,000 cbm the "Clipper Sun" which trades in the spot market after having completed a 12 month TC in January 2010 at satisfactory rates. The spot market is weak. There is still a net growth in the world fleet for large fully ref LPG vessels 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. There is no order book in 60,000 cbm segment. There is still VLGC ships to be delivered in 2010, but there is expected scrapping of a similar number. An anticipated growth in demand is therefore expected to create a better balance between supply and demand and thereby a firmer market in the 2nd half of 2010. The company had 3 ships going through periodical surveys during 2009, while the figure was 4 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. 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 4th 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 4th 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 according to the joint venture accounting method, are enclosed to the report. Stavanger 10th of February 2010 Board of Directors Solvang ASA Complete report including figures is enclosed. This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)
Report per 4th quarter 2009