Svithoid Tankers first quarter report 2008

Svithoid Tankers first quarter report 2008 

Svithoid Tankers presents the first quarter report 2008 

The Managing Director Fredrik Nygren comments on the report:

Strong growth and underlying profit improvement

The turnover increased by 86 % compared to last year's first quarter reaching
SEK 41 million. Operating result was 0.3 MSEK despite cost of about SEK 2
million for Mt Betty Theresa main engine break down in March. The net income, a
loss of SEK 14,6 million, including an unrealized exchange loss of approxemately
SEK 5 million due to translation of currency from consolidation of the
subsidiaries. Net income for the first quarter excluding the translation of
currency and cost due to the engine break down is a loss of SEK 7.6 million
which is an improvement to previous quarter results of SEK 8.5 million excluding
currency translation gain of SEK 2 million. 

Strong reduction of exposure to the spot market

Svithoid Tankers is in a build up phase. There is an imbalance between recently
delivered vessels generating low income and sailing vessels generating income
according to expectations. Furthermore, vessels trading on the spot market show
a loss of estimately SEK 5 million for the first quarter. This spot market
exposure is, however, strongly reduced during the second quarter.  

Mt Baltic Claire is, since the beginning of April, on time charter to
Whitaker/Exxon. Mt Vedrey Kattegatt operates under a time charter contract with
Herning Shipping since the beginning of May. Mt Vedrey Hallarna terminates a
volume contract with Diester in May and will be sailing under a time charter to
Seatankers Ltd which already charters Mt Vedrey Fram. Mt Vedrey Thor, which was
delivered in March, is employed in the spot market until she receives the
necessary approvals. Expectations are that the approvals will be obtained by
June and subsequently she will be on a time charter to JamesFisherEverard. As a
result of these new time charters only Mt Vedrey Heimer will remain in the spot
market.

Larger vessels to be sold

Svithoid Tankers will focus on the segment  vessels under 5,000 dwt. Vessels
above 5,000 dwt, Mt Baltic Claire, Mt Betty Theresa and Mt Baltic Maria,
presently constituting about a fourth of the Group's balance sheet, will
subsequently be divested. The underlying rationale is to focus the resources and
strengthen the balance sheet . 

There are only a few newbuilding contracts beeing signed recently in Svithoid
Tankers' main segment of operation. At the same time, several old vessels have
been sold and have left the North European market. Only a few new ships have
been introduced in the market, among them Mt Vedrey Thor. In summary the sailing
fleet is estimated to have decreased by about 3 percent and average age
remaining high, about 15 years.


For further information please contact: 

Fredrik Nygren, Managing Director
Tel: +46 8 546 999 42
E-mail: fredrik.nygren@svithoidtankers.com

Sven Lundgren, Deputy Managing Director
Tel: +46 8 546 999 44
E-mail sven.lundgren@svithoidtankers.com