Solvang ASA Company disclosures

The result as per 2nd quarter 2010 is a loss before taxes of NOK 19.1 mill against a profit of NOK 14.5 mill as per 2nd quarter 2009. Out of this, loss on the investment portfolio was NOK 9 mill against a profit of NOK 13.6 mill the same period last year. The shipping activity gave a negative result of NOK 8,4 mill against a profit of NOK 6.5 mill per 2nd quarter last year.

Introduction

The result from the shipping activity is still not satisfactory due to low freight rates and low activity. However, the result for 2nd quarter is better than for 4th quarter 2009 and 1st quarter 2010.

Most of the losses on the investment portfolio have been reversed as per end August 2010.

Semiref/ethylene

For the semi-ref. ships in the 12,000 to 17,000 cbm segment earnings level was 45 % lower than in same period 2009 measured in USD. The market has been at a low level since the summer of 2009. Export of ethylene out of the Arabian Gulf has been particularly low. At the same time there has been a net increase in the world fleet.

As reported earlier there are still a number of new buildings to be delivered in 2010 and 2011. This fact will continue creating uncertainty for the ethylene and semiref markets.

In July and August, however, the ethylene export from the Arabian Gulf has increased somewhat causing and increase in rates and reduction in idle time. The earnings level so far in 3rd quarter is higher than the average for the first 6 months.

LGC/VLGC

For the ships in the 60,000 cbm segment earnings level was at par with the same period last year measured in USD. Compared to the last 6 months of 2009 earnings level was 85% higher. However, earnings for these vessels are still at an unsatisfactory level.

For the company's two panmax VLGC ships of 75,000 cbm, earnings were somewhat higher compared to the LGC-segment and were at level with the last six months last year. The company owns one VLGC of 82,000 cbm. This ship traded in the spot market until August when it entered into a time-charter contract.

In the market for larger LPG vessel from 60.000 cbm to 82.000 cbm, the majority of the order book is delivered. There is only a few VLGCs to be delivered the next few years and there is not expected to be a net increase in the world fleet. Export of LPG out the Arabian Gulf is an important factor on the demand side in this market. This export has showed an increase from 2009 levels. The increase is expected to create an improved balance between supply and demand and thereby increases in rates towards year end 2010.

Taxes

25th of June 2010 the Parliament decided upon the final rules for entering the new tonnage tax system. The rules give two alternatives, either a tax when profit is paid out or a fixed tax payment over 3 years. Solvang will most likely decide on the second alternative, The rules result in a net tax of 6,7% of accumulated profits in the old tonnage tax system. Solvang ASA has owned a few older vessels under this system. The last of these where sold this spring.

In the accounts for the first six months a tax cost of the NOK 13,6 mill is booked according to the new rules. The amount is payable in instalments during the next 3 years. The rest of the NOK 22.5 mill tax cost booked into the accounts is not payable taxes.

Solvang's present fleet is owned according to the standard Norwegian tax system. There is a continuous evaluation regarding the timing of entering this fleet into the new tonnage tax system.

General

No particular incident, apart from the tax issue mentioned above, has influenced the result for the first 6 months.

In a demanding market, the company continues it focus on cost effective operation. As well as maintaining the favourable long term financing of the company's fleet.

The company had no ships going through periodical surveys during the period, while the figure was 2 for the same period last year.

Stavanger 25th August 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)

Solvang ASA Half-yearly report 2010
The result as per 2nd quarter 2010 is a loss before taxes of NOK 19.1 mill against a profit of NOK 14.5 mill as per 2nd quarter 2009. Out of this, loss on the investment portfolio was NOK 9 mill against a profit of NOK 13.6 mill the same period last year. The shipping activity gave a negative result of NOK 8,4 mill against a profit of NOK 6.5 mill per 2nd quarter last year. Introduction The result from the shipping activity is still not satisfactory due to low freight rates and low activity. However, the result for 2nd quarter is better than for 4th quarter 2009 and 1st quarter 2010. Most of the losses on the investment portfolio have been reversed as per end August 2010. Semiref/ethylene For the semi-ref. ships in the 12,000 to 17,000 cbm segment earnings level was 45 % lower than in same period 2009 measured in USD. The market has been at a low level since the summer of 2009. Export of ethylene out of the Arabian Gulf has been particularly low. At the same time there has been a net increase in the world fleet. As reported earlier there are still a number of new buildings to be delivered in 2010 and 2011. This fact will continue creating uncertainty for the ethylene and semiref markets. In July and August, however, the ethylene export from the Arabian Gulf has increased somewhat causing and increase in rates and reduction in idle time. The earnings level so far in 3rd quarter is higher than the average for the first 6 months. LGC/VLGC For the ships in the 60,000 cbm segment earnings level was at par with the same period last year measured in USD. Compared to the last 6 months of 2009 earnings level was 85% higher. However, earnings for these vessels are still at an unsatisfactory level. For the company's two panmax VLGC ships of 75,000 cbm, earnings were somewhat higher compared to the LGC-segment and were at level with the last six months last year. The company owns one VLGC of 82,000 cbm. This ship traded in the spot market until August when it entered into a time-charter contract. In the market for larger LPG vessel from 60.000 cbm to 82.000 cbm, the majority of the order book is delivered. There is only a few VLGCs to be delivered the next few years and there is not expected to be a net increase in the world fleet. Export of LPG out the Arabian Gulf is an important factor on the demand side in this market. This export has showed an increase from 2009 levels. The increase is expected to create an improved balance between supply and demand and thereby increases in rates towards year end 2010. Taxes 25th of June 2010 the Parliament decided upon the final rules for entering the new tonnage tax system. The rules give two alternatives, either a tax when profit is paid out or a fixed tax payment over 3 years. Solvang will most likely decide on the second alternative, The rules result in a net tax of 6,7% of accumulated profits in the old tonnage tax system. Solvang ASA has owned a few older vessels under this system. The last of these where sold this spring. In the accounts for the first six months a tax cost of the NOK 13,6 mill is booked according to the new rules. The amount is payable in instalments during the next 3 years. The rest of the NOK 22.5 mill tax cost booked into the accounts is not payable taxes. Solvang's present fleet is owned according to the standard Norwegian tax system. There is a continuous evaluation regarding the timing of entering this fleet into the new tonnage tax system. General No particular incident, apart from the tax issue mentioned above, has influenced the result for the first 6 months. In a demanding market, the company continues it focus on cost effective operation. As well as maintaining the favourable long term financing of the company's fleet. The company had no ships going through periodical surveys during the period, while the figure was 2 for the same period last year. Stavanger 25th August 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)
2nd quarter report 2010