Eitzen Market Report 3q2011

Eitzen Chemical ASA Presentation 3rd Quarter 2011 Results

7 November 2011

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Important notice This Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. These statements and this Presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for Eitzen Chemical ASA and Eitzen Chemical ASA’s (including subsidiaries and affiliates) lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as ”expects”, ”believes”, ”estimates” or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for Eitzen Chemical ASA’s businesses, energy prices, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time in the Presentation. Although Eitzen Chemical ASA believes that its expectations and the Presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the Presentation. Eitzen Chemical ASA is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the Presentation, and neither Eitzen Chemical ASA nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use. The Eitzen Chemical ASA shares have not been registered under the U.S. Securities Act of 1933, as amended (the "Act"), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Act.

3

1. Introduction

2. 3rd quarter 2011 results

3. Operations

4. Chemical tanker market highlights

5. Summary

Appendix

Agenda

4

Main events in Q3 2011

• EBITDA USD 7.1 mill. in Q3’11, vs. USD 6.7 mill. in Q2 ’11

• Process to evaluate alternatives in order to improve its operating cash flow

• Sichem Sablon sold in Q3 • Sichem Pandora and Sichem Padua BBCP cancelled

• Sichem Peace (Q3) and Bertina (Q2) redelivered from

lease

• Sichem Castel sold in Q4

• Expects Q4 to be in line with Q3

5

1. Introduction

2. 3rd quarter 2011 results

3. Operations

4. Chemical tanker market highlights

5. Summary

Appendix

Agenda

6

Income statement

• T/C revenues MUSD 50.3, down 1.7 from Q2 • T/C rate USD 8,936 per day in Q3 vs USD 9,516 in Q2

• Expenses reduced by MUSD 2.5 • OPEX down MUSD 1.1 from Q2 • Charterhire down MUSD 0.8 • G&A down MUSD 0.5

• EBITDA MUSD 7.1 (MUSD 6.7 in Q2) • Capital gain MUSD 2.6

• Sichem Peace • Sichem Padua and Sichem Pandora

• Net interest stable • Net loss of MUSD 19.5 in Q3 (MUSD -27.4 in Q2)

Consolidated 2011 2011 2010 USD mill. Q3 Q2 Q3

T/C revenues 50,3 52,0 51,7

Other income 1,2 1,5 1,2

Gross profit 51,5 53,5 52,9 Vessel operating expenses (30,7) (31,8) (30,2)

Charterhire (7,5) (8,3) (6,5)

G&A expenses (6,2) (6,7) (5,5)

EBITDA 7,1 6,7 10,7 Profit/ (loss) sale of assets 2,6 2,0

Depreciation (19) (19,5) (20,8)

EBIT (9,3) (10,8) (10,1) Net interest (10,8) (10,9) (11,1)

Other financials 0,6 (5,6) (9,7)

Profit before tax (19,5) (27,4) (30,9) Tax (0,0) (0,0) (0,0)

Net profit/ (loss) (19,5) (27,4) (31,0)

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Balance sheet as per 30 September 2011

• Book value of fleet MUSD 1,083 (1,107 in Q2) • Cash MUSD 75.2 (90.8 in Q2)

– Reduction MUSD 15.6 – Includes MUSD 2 paid in compensation (Padua &Pandora)

• Interest bearing debt MUSD 1004 (1025 in Q2)

• Book value of equity MUSD 184 (204 in Q2)

– Book equity ratio 15% (16 % in Q2)

Balance sheet 30 September 2011 (MUSD)

Equity & liabilities: 1,250 Total assets: 1,250

Total assets Equity and liabilites

Owned and leased vessels: 1,083

Other assets: 92

Cash & cash equivalents: 75

Financial lease liabilities: 226

Bond debt: 108

Bank debt: 670

Other liabilities: 62

Equity: 18415%

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Working capital development vs bunker prices

0

100

200

300

400

500

600

700

0

5

10

15

20

25

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Q4'07 Q1'08 Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 Q1'10 Q2'10 Q3'10 Q4'10 Q1'11 Q2'11 Q3'11

USD

pr M

T (B

unke

r pr

ice)

MU

SD (N

et W

orki

ng C

apita

l)

Net working capitalBunker prices

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Balance sheet Consolidated 2011 2011 USD mill. 30.sep 30.jun

Vessels 1 082,8 1 107,2

Intangible assets 1,0 1,9

Financial assets 5,0 9,2

Total non-current assets 1 088,8 1 118,3 Receivables 61,3 61,6

Other current assets 24,7 31,3

Cash 75,2 90,8

Total current assets 161,3 183,7 Total assets 1 250,1 1 302,0

Equity 184,0 203,5 Interest bearing debt 991,4 996,4

Other non-current liabilities 1,0 2,5

Total non-current liabilities 992,4 999,0 Payables 61,2 67,4

Short term debt 12,3 28,8

Other current liabilities 0,1 3,3

Total current liabilities 73,6 99,5 Total equity and liabilities 1250,1 1 302,0

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1. Introduction

2. 3rd quarter 2011 results

3. Operations

4. Chemical tanker market highlights

5. Summary

Appendix

Agenda

11

Introduction to Eitzen Chemical and our fleet

• One of the largest chemical tanker operators with a total sailing fleet of 78 vessels – 54 owned and leased vessels and 24 pool vessels through two pools

• One of the most modern chemical tanker fleet – average age of owned and leased vessels around 7.5 years

• Sichem Pandora (9,200 dwt, built 1994) re-delivered to owner

• Sichem Padua (9,200 dwt, built 1993) re-delivered to owner

• Sichem Peace (8,800 dwt, built 2005) re-delivered to owner under T/C

• Sichem Castel (4,800 dwt, built 1992) sold in Q4

Broad and diversified fleet

Short Sea – Regional Deep Sea – Intercontinental

Stainless steel: 26 (48% ex. pool vessels)

Coated: 52 (52% ex. pool vessels)

20

6

1

15

12

19

5

3' - 12,500 dwt City Class 20' - 50,000 dwt

Pool vessels

Pool vessels

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One of the top chemical tanker operators with a modern fleet

2 on BB 8 on T/C

2 on BB 2 on T/C

Average age ~7.5 years

Average age ~6.4 years

No. of vessels

4050 54

78

10

4

24

Owned vessels Vessels on finance lease

Vessels in balance sheet

Vessels on operating lease

Owned and leased vessels in P&L

Pool managed vessels

Total fleet

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Ongoing strategic fleet optimization

• Continously strive to maintain an optimal portfolio of vessels

• Focus on improvement of risk-reward

• Reduce cash burn in challenging market

• Five strategic divestments YTD 2011

• Underperformers

• Healthier cash flow

33% 37%

28%

Strategic fleet optimization

Sablon Peace Padua Pandora Castel Bertina

31% 42%

27%

Improved fleet 2011

3' - 12,500 dwt 13,000 dwt City Class 20' - 50,000 dwt

34% 38%

28%

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Development in Eitzen Chemical Index

The Eitzen Chemical Index (ECI) is based on the company’s sailed in time charter equivalent (TCE) earnings per day, ECI 100 is based on the TCE in Q4 2006.

ECI – Eitzen Chemical Index

• Average T/C rate for the fleet decreased 6.1 % in Q3 to USD 8,936/ day • USD 1,000 increase in the fleet T/C rate will increase annual revenue by approximately USD 20

million with the current fleet mix

7 000

8 000

9 000

10 000

11 000

12 000

13 000

14 000Q

1'07

Q2'

07

Q3'

07

Q4'

07

Q1'

08

Q2'

08

Q3'

08

Q4'

08

Q1'

09

Q2'

09

Q3'

09

Q4'

09

Q1'

10

Q2'

10

Q3'

10

Q4'

10

Q1'

11

Q2'

11

Q3'

11

USD

Day

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Increase in CoA volume and lifting during Q3

Cargo lifting Q3 2011 CoA volume and lifting Volume (mill MT)

No. of lifting’s

• Total CoA volume was 1.3 million MT in Q3 vs 1.2 million MT in Q2 • Eitzen Chemical carried more than 100 different cargo types in 2010

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Earnings Share on Level with Previous Quarter

Earnings breakdown by contract type

• The 20 largest customers accounted for 55% of the revenue in 2010

Contract cover in no. of days

17

1. Introduction

2. 3rd quarter 2011 results

3. Operations

4. Chemical tanker market highlights

5. Summary

Appendix

Agenda

18

Eitzen Chemical’s main markets – Q3 slow Summer

Atlantic East Coast: Lower COA volumes and spot market as seen towards end Q2 continued through the quarter.. Trans-Atlantic: The weaker undertone at the end of Q2 continued through Q3. COA volumes continued at good levels. Continent-US CPP: The market continued at the low levels seen at the end of Q2 with a small and short improvement at the end of the Quarter

NW Europe - CPP This market has relatively speaking performed better than earlier. On par with Q2.

Continent – Mediterranean – West Africa Reduced COA volumes and seasonal slow spot market.

MEG Lower activity throughout the quarter. Rate under pressure but not dramatic. An uptick towards the end of the quarter.

Far East Freights and activity for chemical stabilized kin the Quarter and short haul palm oils saw better activity and rates.

Trans-Pacific Slower activity throughout the summer with rates under pressure. More activity and better rates towards the end of the quarter..

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Increasing bunker price

• The average bunker price increased to USD 640 per MT in Q3 2011 from USD 633 per MT in Q2, equal to 1 % increase.

USD pr MT Bunker 380 cst Rotterdam Bunkers cost MR vessel consuming 35 tons/ day (USD/ day)

25,000/ day

6,000/ day

21,500/ day

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Gross freight rates have increased - but so have the bunker price

USD/ MT USD/ MT

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Chemical and product tanker fleet

Fleet defined as Chemical and Product tankers from 3k to 60k dwt.

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The order book has declined to 11 % of the current fleet – improved supply picture

• Order book has declined substantially from 55% in 2008 to 11% of the fleet per Q3 2011

• 12% of the fleet is above 20 years • 10% of the fleet is not double hull

Order book versus current fleet Low contracting to continue

• Contracting is still at a low level

Market: ~109 mill dwt

Fleet defined as Chemical and Product tankers from 3k to 60k dwt.

11% of current fleet – down from 30% in Dec

2009

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Demolitions Average scrap price development

A small drop in scrap price

Fleet defined as Chemical and Product tankers from 3k to 60k dwt.

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Fleet growth expected to decline the coming years

Eitzen Chemical Management, industry sources, Product and Chemical tankers. 3k to 60k dwt, corrected for delays, cancellations, new orders, hidden orders. Note: Removal is an expression of exclusion from Double-hull market. A two-tier market separates non-DH from the rest of the market.

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Global economic indicators

Source: Bloomberg and OECD

GDP growth Industrial production indicators

-6.0

-4.0-2.0

0.0

2.0

4.06.0

8.0

10.0

12.014.0

16.0

04 05 06 07 08 09 10 11E 12E 13E

% chg. Y/Y

United States Euro zone China

-15.0

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

Jun95

Jun97

Jun99

Jun01

Jun03

Jun05

Jun07

Jun09

Jun11

12M % chg.

United States China Euro zone

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1. Introduction

2. 2nd quarter 2011 results

3. Operations

4. Chemical tanker market highlights

5. Summary

Appendix

Agenda

27

Significant earnings improvement potential – high operational leverage

• Break-even rate estimated to be around USD 11,000 / day following the financial restructuring in 2009 (break even during the moratorium period, excluding loan installments)

• YTD T/C rate: USD 9,083

T/C rate: ~$ 11,000/day

T/C rate: ~$ 15 -16,000

/ day

Illustrative calculation based on ECHEM’s average vessel Earnings improvement potential – illustrative

Estimated break even rate in moratorium period

(after interest, drydocking and lease hire payments)

T/C rate: ~$ 8,745/day

EBITDA in 2010

(ex. gains/(loss)

on sale of assets)

Annual EBITDA

-20XX market

scenario

~USD 70m

~USD 150-170m

USD 27m

Average vessel

Key data:

Age per Q3 2011 7.5

Dwt 17.675

Stainless steel (% of fleet) 48 %

Coated vessels (% of fleet) 52 %Average number of cargo tanks 17.4

Average number of segregations 17.3

Required T/C rate based on current newbuilding prices:

Estimated newbuilding price (USDm) 25.0

Estimated market value (USDm) 18.9

Age adj. NB price 18.5

Market value vs. age adj. NB price 105 %

OPEX/ day (USD) ~ 6,150

Drydocking/ day ~ 1,450

Required TCE rate based on 7% cost of capital ~ 13,500

G&A per vessel per day ~ 800

Required TCE rate after G&A expenses based on current newbuilding price and 7% cost of capital ~ 14,300

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1. Introduction

2. 3rd quarter 2011 results

3. Operations

4. Chemical tanker market highlights

5. Summary

Appendix

A. Fleet list

B. Shareholders

Agenda

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Appendix: Eitzen Chemical fleet list Vessel Built Coating DWT Ownership Technical manager

Below 8,000 DWT SICHEM COLIBRI 23.04.2001 Stainless Steel 3 592 Owned EMS SICHEM SPARROW 07.06.2001 Stainless Steel 3 596 Owned EMS SICHEM CASTEL 18.06.1992 Stainless Steel 4 864 Owned V-Ships TORQUATO 14.08.1992 Stainless Steel 5 430 Owned V-Ships IEVOLI SILVER 09.10.1992 Stainless Steel 5 459 Owned V-Ships ATTILIO IEVOLI 10.10.1995 Stainless Steel 6 239 Owned V-Ships IEVOLI GOLD 10.10.1993 Stainless Steel 6 999 Owned V-Ships SICHEM CROISIC 15.01.2001 Stainless Steel 7 721 Owned V-Ships SICHEM LILY 02.01.2009 Stainless Steel 8 000 Owned Thome SICHEM ORCHID 07.11.2008 Stainless Steel 8 115 Owned Thome SICHEM IRIS 11.08.2008 Stainless Steel 8 140 Owned Thome

8,000 - 12,800 DWT TOUR MARGAUX 09.02.1993 Stainless Steel 8 674 Owned V-Ships SICHEM PALACE 29.09.2004 Stainless Steel 8 807 Owned Thome SICHEM AMETHYST 13.10.2006 Stainless Steel 8 817 Financial lease with purchase options Bernhard Schulte SICHEM RUBY 08.10.2006 Stainless Steel 8 824 Financial lease with purchase options Bernhard Schulte SICHEM ANELINE 19.11.1998 Epoxy 8 941 Financial lease with purchase options EMS SICHEM PEARL 07.07.1994 Stainless Steel 10 332 Owned EMS TOUR POMEROL 30.09.1998 Stainless Steel 10 379 Owned V-Ships GOLDEN FUMI 30.09.1996 Stainless Steel 11 674 Owned SICHEM CHALLENGE 17.12.1998 Stainless Steel 12 181 Owned EMS SICHEM MISSISSIPPI 15.12.2008 Stainless Steel 12 273 Operational lease with purchase options V-Ships

City Class SICHEM DUBAI 07.12.2007 Epoxy 12 889 Owned EMS SICHEM MARSEILLE 28.07.2007 Epoxy 12 928 Owned EMS SICHEM MELBOURNE 30.08.2007 Epoxy 12 937 Owned EMS SICHEM NEW YORK 04.04.2007 Epoxy 12 945 Owned V-Ships SICHEM HIROSHIMA 20.05.2008 Epoxy 13 000 Operational lease with purchase options EMS SICHEM MONTREAL 28.10.2008 Epoxy 13 056 Owned V-Ships SICHEM BEIJING 12.10.2007 Epoxy 13 068 Owned EMS SICHEM HONG KONG 31.10.2007 Epoxy 13 069 Owned EMS SICHEM PARIS 21.07.2008 Epoxy 13 079 Owned EMS SICHEM MUMBAI 13.10.2006 Epoxy 13 084 Financial lease with purchase options V-Ships SICHEM ONOMICHI 15.02.2008 Epoxy 13 104 Operational lease with purchase options EMS SICHEM MANILA 30.01.2007 Marineline 13 125 Owned EMS SICHEM SINGAPORE 14.03.2006 Epoxy 13 141 Owned EMS SICHEM EDINBURGH 03.05.2007 Marineline 13 153 Owned EMS SICHEM RIO 09.06.2006 Epoxy 13 162 Owned EMS

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Appendix: Eitzen Chemical fleet list Vessel Built Coating DWT Ownership Technical manager 14,000 - 30,000 DWT SICHEM DEFIANCE 2001 Stainless Steel 17 396 Owned EMS SICHEM CONTESTER 2007 Stainless Steel 19 822 Financial lease with purchase options NORTH CONTENDER 2005 Stainless Steel 19 925 Financial lease with purchase options EMS NORTH FIGHTER 2006 Stainless Steel 19 932 Financial lease with purchase options EMS SICHEM PACE 2006 Stainless Steel 19 983 Operational lease EMS SICHEM DEFENDER 2007 Stainless Steel 20 000 Financial lease with purchase options SICHEM OSPREY 2009 Epoxy 25 000 Owned V-Ships SICHEM HAWK 2008 Epoxy 25 385 Owned V-Ships SICHEM FALCON 2009 Epoxy 25 419 Owned V-Ships SICHEM EAGLE 2008 Epoxy 25 421 Owned V-Ships

Above 30,000 DWT SITEAM ANJA 1997 Epoxy 44 640 Owned Thome SITEAM DISCOVERER 2008 Epoxy / Zinc 46 005 Owned Thome SITEAM VOYAGER 2008 Epoxy / Zinc 46 017 Owned Thome SITEAM LEADER 2009 Epoxy / Zinc 46 017 Owned V-Ships SITEAM ADVENTURER 2007 Epoxy / Zinc 46 026 Owned Thome SITEAM EXPLORER 2007 Epoxy / Zinc 46 026 Owned Thome SITEAM JUPITER 2000 Epoxy / Zinc 48 309 Financial lease with purchase options SITEAM NEPTUN 2000 Epoxy / Zinc 48 309 Financial lease with purchase options

Pool vessels / Commercially Managed Built Coating DWT City Class Pool MOOR 2006 Epoxy 12 901 BEN 2006 Epoxy 12 909 FEN 2006 Epoxy 12 934 GLEN 2005 Epoxy 12 956 VALE 2007 Epoxy 13 006 KONGO STAR 2010 Epoxy 13 010 SHANNON STAR 2010 Epoxy 13 019 MISSISSIPPI STAR 2010 Epoxy 13 019 COLORADO STAR 2010 Epoxy 13 019 GANGES STAR 2010 Epoxy 13 019 MURRAY STAR 2011 Epoxy 13 019 DALE 2007 Epoxy 13 031 CHEMTRANS ELBE 2009 Epoxy 13 044 CHEMTRANS WESER 2009 Epoxy 13 045 CHEMTRANS EMS 2009 Epoxy 13 045 CHEMTRANS OSTE 2009 Epoxy 13 075 CHEMTRANS ALSTER 2009 Epoxy 13 080 CHEMTRANS HAVEL 2009 Epoxy 13 080 AMUR STAR 2010 Epoxy 13 153

Team Tankers Pool NAUTILUS 1998 Epoxy 43 538 MARKOS I 2005 Epoxy / Zinc 45 557 IOANNIS I 2005 Epoxy / Zinc 45 557 LOUKAS I 2005 Epoxy / Zinc 45 557 MATTHEOS I 2004 Epoxy 45 557

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Shareholders per 4 November 2011

Source: VPS

Share price development # Shares % CAMILLO EITZEN & CO ASA 383 532 236 34,0 % ODIN NORDEN 55 000 001 4,9 % JP MORGAN CLEARING CORP. 53 505 042 4,7 % SEB ENSKILDA ASA 36 212 549 3,2 % ODIN NORGE 18 725 500 1,7 % DATUM AS 17 430 831 1,5 % GPR TECHNOLOGY FUND LTD 17 402 474 1,5 % UBS AG, LONDON BRANCH 15 945 000 1,4 % ODIN MARITIM 14 945 000 1,3 % APOLLO ASSET LIMITED 14 011 700 1,2 % MORGAN STANLEY & CO INC. NEW YORK 12 713 680 1,1 % HUSTADLITT A/S 12 500 000 1,1 % DNB NOR NAVIGATOR 12 268 338 1,1 % MP PENSJON PK 12 000 000 1,1 % SWEDBANK 11 457 715 1,0 % KLP AKSJE NORGE VPF 10 700 000 0,9 % TOLUMA NORDEN AS 10 450 500 0,9 % KOMMUNAL LANDSPENSJONSKASSE 9 200 000 0,8 % SUNDT AS 8 250 000 0,7 % MATHIAS HOLDING AS 8 000 000 0,7 % Top 20 shareholders 734 250 566 65,1 % Other 393 771 757 34,9 % Total 1 128 022 323 100 % Total number of shareholders 2 565

0

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

50 000

0,0

0,5

1,0

1,5

2,0

2,5

3,0

Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11

Trade volum [1000] (Right)

ECHEM share price NOK (left)

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