MARKET REPORT - Clarksons Report 2014 Proj… · PROLOGUE PROLOGUE Dear Investors and Business Associates, RS Platou Finans Shipping / RS Platou Project Finance is celebrating 10

MARKET REPORTJULY 2014

RS Platou Project Finance

PROLOGUE

PROLOGUEDear Investors and Business Associates,

RS Platou Finans Shipping / RS Platou Project Finance is celebrating 10 years anniversary in 2014.

Th e startup in 2004 proved to be good timing with growing ship-ping and off shore activity driven by a strong growth in the Chinese economy. Th e Norwegian kommanditt selskap (KS) model was a perfect tool for small and medium sized shipowners with a need to refi nance their fl eet to free cash for new investments.

Th e KS returns outperformed the stock exchange by far and a large number of new investors signed up when new investment projects were off ered in the market. Th e annual return on equity during the period 2004-2008 was 30-40% on average and almost all the projects were performing well.

During good times, shipowners tend to reinvest their profi ts into newbuildings to grow their business. Th is has a dramatic eff ect on the supply/demand balance if the market continues to stay fi rm over a long period of time before the cycle turns. When the fi nancial crisis hit the market in 2008, the orderbook was all time high with a large number of Newbuildings under construction. Th e eff ect of declining demand and a two years period with a high number of new ships en-tering the market was severe.

Th e investment portfolio in 2008 was split 50/50 between off shore and shipping projects. While the off shore market continued to per-form well, the shipping market was hit badly. Many shipowners were not able to keep up with their fi nancial obligations due to lower freight revenues and ship values dropped to record low levels.

In addition to the shipowners, the shipping banks were forced to scale down their business. Th e period from 2009-2013 has been challeng-ing with more focus put on restructuring charter contract and bank loans and less focus on new business. Th is has been a lesson learned and a reminder that shipping investments will always involve risk fac-tors that are diffi cult to predict.

2013 was a year with an underlying hope that most shipping segments would experience improved earnings and bett er markets. Many private equity funds were ready to invest in new ventures and new shipowners emerged on the stock exchange. In addition, the traditional shipping stocks recovered some of the market value lost during the previous four years. However, the fundamentals are still uncertain and the poor char-

ter market in both the tanker; bulker and container sector so far this year has put more pressure on the shipping stocks with declining values.

Th e only market over performing has been the LPG sector, driven by large volumes imported to Asia. Even with a high number of new-buildings delivered and low scrapping level, the growth in exports from the Middle East and the US has maintained a high level of earn-ings to the ship owners.

RS Platou Finans Shipping has noticed a growing demand for directs investments into shipping projects in 2014. Although we have only placed two new projects in the market so far this year, we have sold several 2nd hand shares and new investors have asked to be put on our investor list.

Th e continued low interest rate on deposit accounts triggers an inter-est to invest in projects with steady dividends. Our latest project was structured as a secured high yield bond with quarterly payments and zero bank fi nance. Th e annual yield is lower than our traditional bare-boat projects, but so is the risk.

We have been through ten exciting years with the initial fi ve years pro-ducing extraordinary good return to the investors. Th e last fi ve years have been challenging and many shipping projects have lost parts or most of the equity. However, the diversifi cation into off shore invest-ments has recovered some of the losses.

Th e shipping and off shore markets going forward will create many good investment opportunities and we are much honored to see that our investors that have supported us from the fi rst day in business are still investing in the new projects that we place in the market.

RS Platou Project Finance has also during the last year joint forces with CIT as a deal and service provider. CIT is a large US based leasing house that off ers very competitive funding on long term bareboat-lease contracts. More information can be found inside this Market Report.

We wish our investors a sunny summer vacation.

Kind regards,Th e team at RS Platou Finans Shipping / RS Platou Project Finance

CONTENTSPrologue ................................................................. 1Press Release Cooperation Agreement CIT Maritime Finance ............................................. 4Press Release CIT and Grieg Star $ 49 trancaction .................................... 6 Project fi nance; where are the shipping banks? ...... 9The shipping market environment ....................... 12The offshore support vessel (OSV) market ........... 17Projects per year .................................................. 20Projects per year cont. ......................................... 22Projects sold ........................................................ 22Existing projects per segment ............................. 23Projects estimated returns .................................. 24ASIAN BULKERS DIS ........................................... 26ATLANTIC GUARDIAN DIS ................................... 27BLUE MOUNTAIN TANKERS DIS .......................... 28BOVEY OFFSHORE LTD. ........................................ 29BUKIT TIMAH OFFSHORE DIS ............................. 30CIT-GRIEG ............................................................ 31DONGGUAN CHEMICAL TANKERS DIS ............... 32EUROPEAN VENTURE DIS ................................... 33EUROPEAN VENTURE III DIS ............................... 34FEEDER CONTAINER VESSEL DIS ....................... 35GOLDEN KAMSAR DIS ......................................... 36HIGH YIELD SHIPPING DIS ................................... 37

INDUSTRIAL SHIPPING DIS ................................. 38MARINELINE CHEMICAL DIS ............................... 39MED ETHYLENE DIS ............................................ 40MS NORDSTJERNEN DIS ..................................... 41NORTHERN SUPPLY DIS ...................................... 42NORWEGIAN PRODUCT DIS ................................ 43OCTAVIAN BULKER DIS ....................................... 44ORCHARD OFFSHORE DIS .................................. 45PANDA CHEMICAL II DIS ...................................... 46RTS PANAMAX DIS .............................................. 47SARAGOL TANKERS 1 DIS .................................... 48SARAGOL TANKERS 2 DIS .................................... 49SBS TORRENT KS ................................................. 50SBS TYPHOON KS ................................................ 51SEMINYAK DIS ..................................................... 52SENTOSA OFFSHORE DIS ................................... 53SINGAPORE OFFSHORE DIS ............................... 54SINGAPORE SUPPLY DIS ...................................... 55SUDONG OFFSHORE DIS ...................................... 56SOUTHERN CHEMICAL DIS ................................. 57ULLSWATER SUBSEA DIS ................................... 58VESTLAND MARINE SEISMIC DIS ........................ 59PLATOU SHIPINVEST I DIS .................................. 60Head offi ce ........................................................... 62Contacts ............................................................... 63Contacts ............................................................... ...............................................................Contacts

FEEDER CONTAINER VESSEL DIS ....................... .........................................

HIGH YIELD SHIPPING DIS ...................................GOLDEN KAMSAR DIS HIGH YIELD SHIPPING DIS

.........................................HIGH YIELD SHIPPING DIS

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RS PLATOU PROJECT FINANCE AS/ RS PLATOU FINANS SHIPPING ASRS Platou Project Finance has since it was established in 2004 be-come one of the major finance companies in the world that specialize on shipping and offshore related financial schemes in the interest of both ship owners and financial investors.

The main objective is to identify attractive investment opportunities involving the purchase of vessels or offshore equipment attached with secure employment, alternatively present asset play cases where the timing is proven to be optimal.

The strength of RS Platou Project Finance lies not only with the highly qualified staff, but also with the vast shipping related resources available within the RS Platou Group.

RS Platou Project Finance is an independent company within the Platou Group utilising the full potential of having close contact with shipbrokers, ship-utilizing, ship managers, bankers, lawyers and con-sultants worldwide.

Core Activities:• Identify interesting financial shipping opportunities. • Execute and syndicate shipping projects. • Placement of debt. • Corporate Management. • Establish an active second hand market on limited shares.

RS Platou Project Finance has a strong focus on Corporate Manage ment. In addition to managing projects developed by RS Platou Finans Shipping, we have also been elected Corporate Manager for projects established by others. With specialized shipping know ledge we handle all kind of project types from asset play, time charter to bareboat deals. We provide services for the entire life cycle of a project from establishment to liquidation. This includes, among others, to follow up the day to day running of the company, to pro-duce all financial statements and tax statements and secretary services for the board of directors. Our highly qualified team seek to provide the best service possible, optimizing information and cash flow to the investors.

R. S. PLATOU FINANS SINGAPORE PTE. LTD.R. S. Platou Finans Singapore Pte. Ltd. was established in early 2007 to capture the growing demand for new financial instruments in the Asian shipping and offshore markets. The limited partnerships struc-tures has increased in popularity all over the world and in order to be closer to the customers, the R. S. Platou Finans Singapore Pte. Ltd. office was opened with a view for further expansion.

We believe that being present in Asia and having the ability to meet clients within short notice gives us a great advantage in concluding more transactions in structured finance. With the booming Asian markets and clients demand for expansion, the limited partnerships has created an additional source for Asian based shipping and off-shore clients to use both the regional and global equity markets to expand their operations.

Being a hub for shipping, offshore and maritime activities, the impor-tance of an Asian presence for us has become apparent over the last few years. More European banks are also increasing their activities through having fully licensed offices in Singapore.

We are pleased to be part of the RS Platou Group. The unparalleled strength of the RS Platou Group in Singapore provides great syner-gies in both sourcing and servicing clients in Asia.

RS PLATOU REAL ESTATE ASRS Platou Real Estate AS is one of the leading players within Norwegian real estate project finance, and is now a fully integrated real estate corporate finance house. The company is specialized in sourcing, structuring, asset management and facilitating of com-mercial property, focusing on the Norwegian and Swedish real estate market.

RS Platou Real Estate is an independent company within the RS Platou group, and its entrepreneurs have a long track record, each with 15-20 years of experience respectively. We believe that a real estate project finance house shall have the competence and under-standing to control the whole value-chain, and we have over the last years focused on securing the operational competence to handle every-day-life in our projects, and serve the tenants in a best possible way.

An extensive network in the Nordic real estate market and a team pro-viding highly specialized real estate knowledge, should pave the way for many interesting opportunities in the coming year.

The company’s core activities are:• origination of interesting financial real estate opportunities• structuring and re-structuring of real estate projects• structuring of development and opportunistic real estate projects• project financing of real estate projects• corporate finance advising within the commercial real estate sector• real estate asset management• real estate property management

RS PLATOU INVESTOR SERVICES AS ARSRS Platou Investor Services AS ARS is a wholly owned subsidiary of RS Platou Project Finance, a leading finance company specialising in Shipping and Offshore projects focusing to private investors. Platou Investor Services’ objective is to assist private investors in establish-ing new companies. The Company is authorised to offer accounting services in accordance to Norwegian law.

We can offer our customers a wide scope of services, including:– Establishment and incorporation of LTD, NUF, limited-,

general- and internal partnership – Accounting and budgeting – Remittance – Wage payment– Annual accounts with tax documentation – Tax advice – Secretarial assistance

Why choose Platou Investor Services? We have close connections with numerous well-known and respected companies and establishments, such as lawyers, banks and chartered accountants, whose services can be utilised by our investors if so wished.

Customers of RS Platou Investor Services will, just like customers of RS Platou Project Finance, be advised of and have access to interest-ing investment projects proposed by RS Platou Finans Shipping. Our employees have substantial qualifications regarding establishing and book keeping of companies under the new Norwegian tonnage tax system.

The cost of our services is very competitive compared to the market rates in general.

To ensure first-class service the investor establishes a personal busi-ness relation with the assigned accountant for easy and timely assis-tance.

3 RS PLATOU PROJECT FINANCE2 RS PLATOU PROJECT FINANCE

5 PROJECTS4 PROJECTS

Published on CIT Press Releases (http://cit .newshq.businesswire.com) on 10/16/13 8:30 am EDT

CIT Maritime Finance and RS Platou Finans Enter intoCooperation Agreement

Release Date:Wednesday, October 16, 2013 8:30 am EDT

Terms:Business Unit News Marit ime Finance

Dateline City: NEW YORK

Will Help Expand CIT Maritime Finance’s Portfolio of Products andServices

NEW YORK--(BUSINESS WIRE)--CIT Group Inc. (NYSE:CIT) cit .com, a global leader in transportation finance, today announcedthat CIT Marit ime Finance has entered into a Cooperation Agreement with RS Platou Finans AS that will help CIT Marit imeFinance expand into the leasing market.

“Through this agreement CIT Marit ime Finance will have access to the RS Platou Group network of services, which will help usto further build a high quality portfolio of marit ime assets,” said C. Jeffrey Knittel, President, CIT Transportation Finance.

Svein Engh, Group Head and Managing Director of CIT Marit ime Finance, said, “We see great growth potential in the shippingfinance business and are very pleased to enter into this relationship with RS Platou Finans. Their deep industry expertise willbe an asset to CIT Marit ime Finance as we continue to build our portfolio.”

Peter Anker, CEO of RS Platou ASA, said, “As a world leading brokerage house in shipping and offshore, this cooperationagreement with CIT Marit ime Finance will further increase the range of services that we are able to offer our clients.”

Chris W. Svensson and Axel M. Aas, Co-founders of RS Platou Finans AS, said, “In the present banking world it has becomeeven more important to find alternative financing. We are very pleased to develop this relationship with CIT and learn fromtheir long-term experience of leasing assets to the aerospace and rail sectors.”

EDITOR’S NOTE:

View CIT’s corporate overview video (cit .com/corporatevideo) that showcases our support of the small business, middlemarket and transportation sectors.

Follow us on Twitter: @citgroup, on LinkedIn: LinkedIn.com/company/cit , on YouTube: YouTube.com/citgroupvideo, and onFacebook: facebook.com/citgroup. Individuals interested in receiving corporate news releases can register atcit .com/newsalerts or subscribe to the RSS feed at cit .com/rss.

About RS Platou Finans AS

RS Platou Finans AS was established 2004 as part of the RS Platou Group. It focuses on lease financing in the shipping andoffshore industry and has structured more than 200 sale-leaseback vessels with transactions totaling approximately $4billion (USD). It currently manages approximately 80 vessels running on various bareboat contracts.

About RS Platou

RS Platou is a leading international ship- and offshore broking company established in 1936. The Company serves theshipping and offshore industry worldwide by providing services within chartering, sale and purchase and contracting of shipsand offshore units. Further, the Company provides investment banking services and project financing with a core focus onthe shipping and offshore industries. The core services are complemented by a large variety of quality research material andmarket reports provided by the economic research group and the research analyst within the investment bank. TheCompany’s head office is in Oslo, Norway. RS Platou is also present in Singapore, Aberdeen, London, Houston, Moscow, Accra,Cape Town, Rio de Janerio, Shanghai, South Korea, Piraeus, Geneva, Dubai, Perth, Sydney, Melbourne and New York. The Grouphas approximately 350 employees worldwide.

About CIT Maritime Finance

CIT Marit ime Finance offers senior secured loans, sale-leasebacks and bareboat charters to owners and operators ofoceangoing cargo vessels including tankers, bulkers, container ships, car carriers, as well as offshore vessels and drilling rigs.cit .com/marit ime

About CIT

Founded in 1908, CIT (NYSE: CIT) is a bank holding company with more than $35 billion in financing and leasing assets. Itprovides financing and leasing capital and advisory services to its clients and their customers across more than 30 industries.CIT maintains leadership posit ions in small business and middle market lending, factoring, retail finance, aerospace,equipment and rail leasing, and vendor finance. CIT operates CIT Bank (Member FDIC), its primary bank subsidiary, which,

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Ticker: CITExchange: NYSEISIN:US1255811085

through its online bank BankOnCIT.com, offers a suite of savings options designed to help customers achieve a range offinancial goals. cit .com

Photos/Mult imedia Gallery Available: http://www.businesswire.com/mult imedia/home/20131016005302/en/

Language: English

Contact:

CIT MEDIA RELATIONS:C. Curtis Ritter, 973-740-5390Director of Corporate [email protected] Klein, 973-597-2020Vice President, Media [email protected] INVESTOR RELATIONS:Ken Brause, 212-771-9650Executive Vice [email protected] Platou Finans:Christ ian W. Svensson, +47 23112807Senior [email protected] M. Aas, +47 23112806Senior [email protected]

Ticker Slug:

Source URL: http://cit.newshq.businesswire.com/press-release/business-unit-news/cit-maritime-finance-and-rs-platou-finans-enter-cooperation-agreeme

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Published on CIT Press Releases (http://cit .newshq.businesswire.com) on 5/21/14 8:30 am EDT

CIT Completes $49 Million Bareboat Charter Financingwith Grieg Star

Release Date:Wednesday, May 21, 2014 8:30 am EDT

Terms:Business Unit News Marit ime Finance Transportation Finance Transportation Lending

Dateline City: NEW YORK

NEW YORK--(BUSINESS WIRE)--CIT Group Inc. (NYSE:CIT) cit .com, a global leader in transportation finance, today announcedthat CIT Marit ime Finance, with the assistance of RS Platou Finans, completed a $49 million financing through a bareboatcharter arrangement with Grieg Shipping II AS, a subsidiary of the Grieg Star Group AS (Grieg Star), the second largest openhatch general cargo carrier owner in the world. The subject vessel was Star Lygra, a 50,700 deadweight tonnage open hatchgeneral cargo carrier. Financing from CIT was provided by CIT Bank, the U.S. commercial bank subsidiary of CIT. Terms of thetransaction were not disclosed.

“We’re pleased to acquire this state-of-the-art vessel and bareboat charter it to Grieg Star, one of the largest and mostreputable owners of open hatch general cargo carriers in the world,” said Svein Engh, Managing Director and Group Head ofCIT Marit ime Finance. “This transaction represents our first financing through a bareboat charter and reflects our ability tostructure a tailored financing solution that affords Grieg Star purchase options and increased capital flexibility.”

Star Lygra, delivered December 2013, was built at Hyundai Mipo Dockyards in South Korea and is part of a series of 10 L-classvessels. The L-class vessel represents the 12th generation in the Grieg Star Open Hatch concept. The open hatch design isa well-proven concept and is tailor-made for transportation of forest products, steel, containers and other oversizedcargoes. The vessel is equipped with four cranes with power swivel for steady cargo handling. The open hatch allows forcompletely unobstructed cargo loading and handling. The ship is 670 feet long and 105 feet wide with nine cargo holds. Fullyloaded, the ship can reach speeds of 15.5 knots, or a litt le more than 17 miles per hour.

Camilla Grieg, CEO of Grieg Star, said, “This customized transaction complements our exist ing portfolio of more than 30owned ships and will allow us to service the increasing transportation demand around the world. We have more than 50 yearsof experience in the marit ime sector and are pleased to complete our first transaction with Svein and his team, whose deepindustry knowledge served us well.”

EDITOR’S NOTE:

View CIT’s corporate overview video (cit .com/corporatevideo) and CIT Perspectives (cit .com/perspectives), which showcaseour insights and ability to put our knowledge to work for the small business, middle market and transportation sectors.Follow us on Twitter, LinkedIn, YouTube and Facebook or register to receive press releases at cit .com/newsalerts.

About Grieg Star

Founded in 1961 and headquartered in Bergen and Oslo, Grieg Star, is one of the largest owners of open hatch general cargocarriers in the world. The Group’s trade routes cover North and South America, Europe and Asia, and one of the major traderoutes is the North American pulp and paper cargo sailings to Asia and Europe. The Group owns, manages and operates 34open hatch general cargo carriers (of which 32 are owned) with sizes between 30,000 and 50,000 dwt. The Group employedapproximately 1,100 persons, of whom 850 are sailing personnel and 250 office personnel. Dating back to 1884, the Griegfamily controls a number of businesses mainly related to the marit ime industry. griegstar.com

About RS Platou

RS Platou is a leading international ship- and offshore broking company established in 1936. The Company serves theshipping and offshore industry worldwide by providing services within chartering, sale and purchase and contracting of shipsand offshore units. Further, the Company provides investment banking services and project financing with a core focus onthe shipping and offshore industries. The core services are complemented by a large variety of quality research material andmarket reports provided by the economic research group and the research analyst within the investment bank. TheCompany’s head office is in Oslo, Norway. RS Platou is also present in Singapore, Aberdeen, London, Houston, Moscow, Accra,Cape Town, Rio de Janerio, Shanghai, South Korea, Piraeus, Geneva, Dubai, Perth, Sydney, Melbourne and New York. The Grouphas approximately 350 employees worldwide.

About CIT Maritime Finance

CIT Marit ime offers senior secured loans, sale-leasebacks and bareboat charters to owners and operators of oceangoingcargo vessels including tankers, bulkers, container ships, car carriers, as well as offshore vessels and drilling rigs.cit .com/marit ime

About CIT Bank

Founded in 2000, CIT Bank (Member FDIC, Equal Housing Lender) is the U.S. commercial bank subsidiary of CIT GroupInc. (NYSE:CIT). It provides lending and leasing to the small business, middle market and transportation sectors. CIT Bank(BankOnCIT.com) offers a variety of savings options designed to help customers achieve their financial goals. As of March 31,2014, it had over $13 billion of deposits and more than $16.5 billion of assets. cit .com/CITBank

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Ticker: CITExchange: NYSEISIN:US1255811085

About CIT

Founded in 1908, CIT (NYSE:CIT) is a financial holding company with more than $35 billion in financing and leasing assets. Itprovides financing, leasing and advisory services to its clients and their customers across more than 30 industries. CITmaintains leadership posit ions in middle market lending, factoring, retail and equipment finance, as well as aerospace,equipment and rail leasing. CIT’s U.S. bank subsidiary CIT Bank (Member FDIC), BankOnCIT.com, offers a variety of savingsoptions designed to help customers achieve their financial goals. cit .com

Language: English

Contact:

CIT MEDIA RELATIONS:C. Curtis Ritter, 973-740-5390Senior Vice President of Corporate [email protected] Klein, 973-597-2020Vice President, Media [email protected] INVESTOR RELATIONS:Barbara Callahan, 973-740-5058Senior Vice [email protected]

Ticker Slug:

Source URL: http://cit.newshq.businesswire.com/press-release/business-unit-news/cit-completes-49-million-bareboat-charter-financing-grieg-star

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David P. Österström Managing Partner

Natalie TehAccountant

Axel M. Aas Managing Director & Senior Partner

Christian W. Svensson Senior Partner

Truls Wiese Kolstad Project Broker

Trond HamreSenior Partner

Heidi Meyer Westby Office Manager

Asbjørn Wulfsberg Managing Director

Benjamin Ryeng-HansenManaging Director

Eva Lise Bjerke Corporate Manager

Erik Kristian AndresenCorporate Manager

Elisabeth RelboSecretary

RS Platou Project Finance AS

R. S. Platou Finans Singapore Pte. Ltd

Ship Finance

RS Platou Finans Shipping

Ship Finance

RS Platou InvestorServices

Investor Services

RS Platou Project Finance

Corporate Management

Morten Astrup Project Broker

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RS PLATOU FINANS SHIPPING

PROJECT FINANCE; WHERE ARE THE SHIPPING BANKS?

2013 has been an eventful year for the shipping industry, characterized by growing optimism as freight rates in several segments of the product, chemical, dry bulk and crude oil tanker markets have visited profitable levels.

This year, the spotlight has been on the capital markets, where risk appetite for shipping among both institutional and retail investors has come back strong. While shipping stocks have, on average, performed better than the exchange indices, it has also been a refreshing year in terms of equity raised for shipping companies through the stock exchanges and the OTC market.

Private equity firms have been increasingly active in teaming up with shipowners to jointly expand their fleet at today’s low new-building prices. The major players in private equity have been US-based firms, while the shipowners involved have varied from Americans and Greeks to Germans.

The main challenge in the KS market has been that even though investors are interested in picking up quality assets at histori-cally low price levels, banks are still unwilling to lend to new projects.

Instead, shipping banks have been actively competing for large shipowners using a “low-margin/more ancillary services” stra-tegy. At this point in time, most banks are still reluctant to take more risk and are instead focusing on syndication and existing clients.

There are still a few active banks that are interested in projects with higher margins, and we are expecting more banks to in-crease their activity levels as their liquidity improves and the shipping markets recover.

As freight rates have climbed in the second half of 2013, we have noticed a growing interest from our investors.

For Offshore projects, we see that there is an interest in long-term bareboat projects to a strong counterpart, with a solid cash flow and dividend yield.

In traditional shipping, we have noted that the interest lies in 100 percent equity financed “asset play” projects, with a time horizon of two to three years.

RS Platou Finans Shipping believes there will be several inter-esting investment opportunities in 2014. Even though there are overcapacity challenges ahead and bunker prices remain high, there are positive indicators of a near-term recovery for indu-strial shipping.

The popularity of Eco-design has contributed to lower second-hand prices for non-eco modern industrial shipping assets that still have most of their economic life ahead of them. This year we have seen the world economy picking up steam led by in-creased growth in the US, EU and Asia. As markets recover, we believe these assets will be employed at profitable levels and that their second-hand value will increase significantly.

The Offshore market is forecasted to remain strong in 2014, due to a stable high oil price and a projected growth in global E&P spending of 6.1 percent.

A substantial number of semi’s, jack-up rigs, and drillships are scheduled to be delivered over the next three years, which will also have a positive impact on OSV demand.

RS Platou Finans Shipping will continue to explore interesting opportunities in Offshore for our investors.

THE NORWEGIAN “KS” MARKET IN 2013The reported project value among the top four KS houses was in excess of 700 mill USD in 2013. This is a 15 percent increase from last year’s numbers, continuing the positive trend over the last three years. The level of activity is still limited compared to the top year of 2007, when total investments reached 5 bill USD.


TOTAL PROJECTS BY SEGMENTSTOTAL PROJECTS BY EMPLOYMENT

Product tankers 15%

Seismic 1%Container 2%

Mulitpurpose 6%

Chemical 17%

Cable Layer 5%

Offshore 45%

Bulk 9%

Spot 4%

Timecharter 13%

Bareboat 83%

SUMMARY KS-HOUSES 2005 - 2013 (FEARNLEYS, NRP, PARETO, PLATOU)

Mill $

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

201320122011201020092008200720062005

Total Project Price

Paid in Equity

Uncalled capital

Of the completed projects in 2013, about 50 percent were off -shore related, with the remainder of the projects in the contain-er, chemical, product and dry bulk segments.

Recently, we have seen modern KG fi nanced container ships being sold by banks at low prices and we are expecting to see more of this in 2014. Analysts are predicting this segment will start to recover in 2015, which makes it an interesting oppor-tunity for asset plays.

RS PLATOU FINANCE SHIPPING PORTFOLIO OF PROJECTSTh is year, RS Platou Finans Shipping has successfully placed three new projects in the container, off shore and chemical tanker segments with a combined project value totaling 487 mill NOK.

In total, RS Platou Project Finance is the corporate manager for 66 vessels in 30 diff erent projects.

Th e corporate management also includes some projects limited to pure accounting services. Th ere is a market for professional independent corporate management services and RS Platou Project Finance has been appointed by several domestic and foreign shipowners to perform this service.

Th e current portfolio consists of 30 off shore supply vessels, 11 chemical tankers, 10 product tankers, six bulk carriers, four multipurpose vessels, three cable layers, two container ships, one seismic and one veteran passenger ship.

Th e majority of our existing projects are performing well, and we have seen improvements in the estimated residual value of

some of our projects that were initiated both before and aft er the fi nancial crisis. Th is year, ten of our existing projects have been concluded.

CO-OPERATION AGREEMENT WITH CIT MARITIME LEASINGIn October 2013, RS Platou Project Finance signed a co-opera-tion agreement with CIT Maritime Finance, to assist the com-pany in building a ship leasing portfolio, as well as providing corporate management services for their future fl eet. CIT is a leading US-based leasing bank that specializes in leasing to the transportation industry. Th e company has approximately 30 bill USD of assets in the Air and Rail Transportation industries and is currently in the process of building up a Maritime leasing portfolio.

Th e deals done with CIT will not be in competition with our KS activity, as these deals are of much larger scale to solid coun-terparts, with good credit ratings or long-term contracts to oil majors and major commodity traders.

Th ere has been a lot of activity in lease fi nancing this year, espe-cially for modern off shore support vessels, LNG carriers and container ships. It is apparent that large shipowners are starting to consider leasing as a competitive source of long-term fi nanc-ing that provides added benefi ts over traditional bank fi nancing.

Th ere are a handful of large companies that can compete with CIT for business, but it is our experience that CIT can out-compete these companies while delivering a time-eff ective and fl ex i ble leasing solution.


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13 THE SHIPPING MARKET ENVIRONMENT 12 THE SHIPPING MARKET ENVIRONMENT (FROM RS PLATOU ASA’S ANNUAL REPORT 2014)

A TURNING POINT FOR FUNDAMENTALS…2013 was very much a year of two halves, for the world economy as well as for the shipping markets. Economic activity slowed fur-ther, from a none-too-impressive, level in the fi rst half of the year, while sustained robust fl eet expansion continued. Th e result was predictably negative for all major shipping segments and led to tumbling freight rates (to twenty-year lows for some).

In retrospect, a turning point took place midway through the year. Th e world economy began to move forward, causing tonn-age demand to improve. Th e US led the economic improve-ment, while stronger Chinese import growth was the main factor behind improving tonnage demand. At the same time, gradually fewer newbuilding deliveries, indeed fewer than ex-pected, caused fl eet growth to slow notably and capacity utiliza-tion to improve. ... FROM A STARTING POINT THAT WAS BETTER THAN MANY FEAREDWe argued last year that “cyclicality is not dead”, asserting that even the volatility seen in 2012 argued against the notion of structural overcapacity. In our view, tonnage demand has been growing above trend in recent years, as more and more devel-oping countries have become important contributors. Th is has caused more complex trading patt erns and, in many cases, longer port times, reducing fl eet productivity. In particular, we believe that the increase in bunker prices in recent years must be seen as a structural change, as this has eff ectively introduced some very real “speed limits”, thereby adding to the eff ective

demand. Th e point is that real tonnage demand has increased signifi cantly more than one would expect if only looking at pure trade volume numbers. Consequently, only container ship-ping has developed a level of overcapacity that could be called structural. For dry bulk, tankers and most industrial shipping segments we estimate that overcapacity is between 5 and 10 percent. Th e exceptions are LNG and LPG, which have no over-capacity to speak of. Set against that background, a recovery that restores profi table conditions should be achievable over the next couple of years.

TONNAGE DEMAND GROWTH AGAIN RELATIVELY STRONG CONSIDERING WEAK WORLD ECONOMYTotal tonnage demand grew by an estimated 6 percent in 2013 but it is hard to put this performance into perspective. On the one hand it was a relatively weak year as this was only the sec-ond time in a decade that growth was this low. On the other hand it could also be seen as a relatively strong year, as the previ-ous time world GDP growth dipped below 3 percent, in 2001-2002, tonnage demand growth was only around 2 percent. Th is demonstrates how the shipping “intensity” of the world econo-my has increased over the past decade.

All main segments contributed with dry bulk and LPG leading the way, each with an impressive increase of 9 percent. LNG was the only exception, showing no growth in tonnage demand. Keep in mind, however, that this fi gure came on the heels of exceptional demand growth in recent years in the wake of the Fukushima disaster.

Although 2013 was yet another weak year for the world economy and global shipping markets, the year will, in hindsight, be seen in a positive light. There are two principal reasons for this. First of all it ended on a signifi cantly better note than it began, as fundamentals visibly improved. Secondly, surprisingly dynamic freight market trends for both dry bulk and tankers strongly suggested that industry overcapacity was moderate and not structural, as it was in the 1970’s and 1980s. We estimate that world fl eet capacity utilization improved by about 1 percentage point during 2013 to 85 percent overall.

THE SHIPPING MARKET ENVIRONMENT

WORLD SHIPPING 2013:ON THE PATH TO RECOVERY

FLEET GROWTH SLOWING, AT LASTVery high fl eet growth, which has been a major depressant on freight markets during the past fi ve years, began to slow down in 2013. Newbuilding deliveries are now on a trend of marked decline and were about one third lower than in 2012. Total demolition fi gures were somewhat lower than in 2012, but still remained relatively elevated compared to previous years. Total fl eet growth reached 5 percent against 2012, the lowest fi gure since 2004. Growth slowed in all major segments, except for containers. Th e dry bulk fl eet continues to have the fastest growth at 8 percent, but it also registered the biggest slowdown from last year when the increase was 12 percent.

SLIGHT INCREASE IN CAPACITY UTILIZATION TO 85 PERCENT, AFTER STRONG FINISHAverage fl eet utilization inched up by less than 1 percentage point to 85 percent. Although this is still a low number com-pared to the average of 90 percent between 2003 and 2008, veteran market observers will appreciate that it is a very far cry from the 70 percent, or even lower level, which existed in the 1970s and 1980s. Utilization rose for all main segments, except for LNG, but that segment had the highest utilization rate by far to begin with. Th e largest increase was seen for the LPG seg-ment, which improved by 3 percentage points to 87 percent.

ASSET VALUES ON THE REBOUNDIt was a very active year for asset transactions. Newbuildings led the way as relatively low prices, new eco-design vessels and increased private equity capital availability caused the order intake to tripple from 2012, although it remained well belowthat of the heydays of 2007. Newbuilding prices increased, gradually at fi rst but with a more pronounced trend in the second half. Dry bulk and container vessels led the way, but tanker prices were also on the rise in the second half of the year.

Th e secondhand market was relatively quiet during the fi rst six months of 2013, but picked up signifi cantly in the second half as freight rate recoveries in various sectors illustrated that the gap relative to newbuilding prices had become too large. Th e tanker segment was the most active, by far, with the number of transac-tions increasing by nearly 30 percent from 2012. Overall, the to-tal volume of S&P transactions increased by about 10 percent.

TANKERS IN 2013: TERRIBLE START, STRONG FINISH Of any shipping segment, the crude tanker market most clearly showed how the shipping industry turned the corner in 2013. Th e fi rst half of the year was marked by a decline in the global oil trade of more than 3 percent, as all main importing countries reduced imports due to weak demand and/or too-high inven-tories. Fleet capacity, meanwhile, expanded by 5 percent. Th e result was a predictable market collapse, with fl eet utilization falling to an estimated 80 percent, the lowest level in 15 years.

However, fundamentals began to slowly improve during the summer, as rising oil demand spurred seaborne trade while fl eet capacity fl att ened out. When stronger seasonal demand kicked in during the fourth quarter, VLCC rates rose to nearly $40,000 per day on average, up from $13,000 in Q3.

For the full year we estimate that tonnage demand increased by more than 3 percent - all of the increase coming in the second half of the year - while fl eet capacity rose by 4 percent. Overall fl eet utilization fell by less than 1 percentage point to 83 percent.

DRY BULK IN 2013: STRONG CHINESE IMPORT GROWTH LIFTS RATES Dry bulk freight rates improved in 2013 from the miserable levels of 2012. We estimate tonnage demand to have increased about 9 percent, driven by a new record in Chinese dry bulk imports and a substantial recovery in global grain trade in the

WORLD MERCHANT FLEET 2004–2013ANNUAL CHANGES

TONNAGE DEMAND GROWTH VS WORLD ECONOMIC GROWTH 1992–2013

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9

13121110090807060504

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14

-1 0 1 2 3 4 5 6

Tonnage demand growth world merchant fleet, annual changes in percent

World output growth

02

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94

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98 93

99

12 13

01

04

97

07 '00 11

09

10

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03

96

➤

latt er part of the year. Th e fl eet increased slightly less than 8 percent. Fleet utilization thereby rose by around 1 percentage point calculated on a yearly average basis. Th e dry bulk market followed a similar patt ern as the tanker market, with a weak fi rst half of the year and a rebound in the second half. China reduced iron ore inventories in the fi rst half and thus needed to import more in the second half. On top of this, a remarkable recovery in grain shipments from the US and Black Sea created a signifi cant contribution to tonnage demand for medium size tonnage.

For the full year, our weighted dry bulk index rose from $9,400 per day in 2012 to $12,800 per day for 2013, a rise of 34 per-cent. Th e largest increase came in the Capesize sector, where average earnings rose from $9,800 per day in 2012 to $16,600 in 2013, a rise of 69 percent. Panamaxes obtained $9,500 per day against a meager $8,100 the year before, still a 17 percent rise. For Supramax tonnage, average earnings increased less than 10 percent – or, more precisely, from $9,400 to $10,300 per day. Th e improvement in the Handy sector was even more moderate, with a daily rate rise to $8,200 for 2013 set against $7,600 in 2012.

CONTAINERS IN 2013: DOWNWARD PRESSURE PERSISTSTh e container ship market was characterized by continued downward pressure on box rates for most of the year. Carriers

failed in their multiple att empts to raise freight rates. Th e uplift in box rates in the last two months of the year was driven by stronger year-end demand and capacity withdrawals in major services. Charter rates were also under constant downward pressure apart from smaller geared tonnage, which experienced healthy demand and falling fl eet growth over the year. Prelimi-nary data suggests a slight drop in fl eet utilization resulting from higher fl eet growth relative to tonnage demand increase.

LNG IN 2013: CONTINUING TO OUTPERFORMTh e LNG shipping market remained one of the very few seg-ments in the shipping industry where owners made money throughout the whole year in 2013. A combination of very litt le new liquefaction capacity coming on stream, continued low production at some liquefaction facilities and reduced transport distance resulted in a status quo for shipping demand growth. Th e high ordering activity in the previous two years started to impact upon fl eet growth towards the end of 2013, causing a modest increase in average fl eet capacity, thereby contribut-ing to a decline in the utilization rate. Short-term rates thus fell from $125,000 in 2012 to $98,000 per day in 2013.

LPG IN 2013: OWNERS’ WINNING STREAK CONTINUING AND PICKING UP STEAMTh e LPG shipping market registered its third consecutive year where spot rates for the largest ships, VLGCs, gave the own-ers a healthy return on invested capital. Preliminary data sug-

gests that seaborne trade for LPG increased by 6 percent, driven by a surge in US exports, while ammonia trade fell by almost 3 percent. Delivery of new tonnage picked up signifi cantly in 2013 with 1.3 cbm of new carrying capacity causing the fl eet to expand by 4 percent this year, leading to a 5 percent hike in the utilization rate. Th is lift ed spot rates for VLGCs by $6,000 from 2012 to $36,000 per day.

CAR CARRIERS IN 2013: STATUS QUO2013 was a rather uneventful year in the car carrier market. Demand growth was supported by strong US car sales and healthy export volumes out of India, Th ailand and Europe. However, main exporters Japan and Korea reported a 3 per-cent reduction in volumes, mainly caused by weaker demand in Europe. Global demand growth is estimated to have been below 3 percent in 2013. Combined with fl eet growth of slightly above 3 percent, this caused a marginal reduction in fl eet capacity uti-lization to around 86 percent.

WORLD ECONOMY AND WORLD SHIPPINGTh rough the fi rst half of 2013, the development of the world economy mirrored the disappointing performance of recent years with a resulting weak development of tonnage demand. In contrast with previous years, however, the economy was able to pick up speed on its own during the second half, with-out a fi nancial crisis triggering extra stimulus from Central Banks. Th e result was an upturn in trade growth and the main commodity shipping segments all responded with a rebound in freight rates.

MATURE ECONOMIES SURPRISING ON THE UPSIDE….However, the key change taking place in 2013 was that the mature economies turned out to be capable of rising from the ashes and resuming a leadership role, which in turn helped to break the downward momentum of the emerging economies. Th e US economy, buoyed by its comparative advantage of low-

er energy costs and of continued heavy monetary stimulation, began to pick up speed as the negative eff ects of automated tax hikes and spending cuts at the start of the year gradually wore off . Th e Eurozone economy ended two years of contraction in the spring, helped by the combination of increased competitive-ness through lower wage growth and more stable fi nancial condi-tions, which together contributed to stimulating overall activity. Th e result was an upswing in activity, coupled with the need to rebuild depleted inventories, causing production and imports to strengthen. Th e improvement must be kept in perspective, how-ever, as GDP growth only improved on a quarter-to-quarter ba-sis. Measured on a year-on-year basis, the economy continued to contract through the year. Th e Japanese economy also improved, as new Prime Minister Shinzo Abe introduced fi scal stimulus, as well as a more aggressive monetary policy in order to weaken the Yen and increase the economy’s competitiveness.

… WHICH HELPED AVOID A DEEPER SLUMP IN THE EMERGING ECONOMIESTh is was a much-needed development, as the pace of growth in emerging economies slowed precipitously in 2013, includ-ing that of China. Although Chinese growth fi gures remain the envy of virtually all other countries, the pace of growth has been slowing consistently since 2010. Th e slowdown deepened in the fi rst half of 2013, with virtually all sectors of domestic activity decelerating in response to tighter credit conditions and weaker exports. As a result the economy slowed to an esti-mated 7.5 percent growth rate, the lowest fi gure for more than a decade. Th e economy appeared to stabilize during the second half of the year, however, as exports rebounded and there was a moderate uptick in private sector spending.

Other emerging markets, from India to Indonesia and Turkey to Brazil, also experienced slowdowns, as authorities were forced to fi ght off the infl ationary pressure that had built up aft er the Financial Crisis.

WORLD SEABORNE TRADE AND ECONOMIC GROWTH 1970-2013

50

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13110907050301999795939189878583817977757371

Index 1970=100

World output

Seaborne dry trade

Seaborne oil trade

ANNUAL GROWTH IN REAL GDP PERCENTAGE CHANGE FROM PREVIOUS YEAR

Jan 2013 Jan 2014 Jan 2014 Forecast Actual Forecast 2013 2013 2014USA 2.0 1.9 2.8Japan 1.2 1.7 1.7Euro area -0.2 -0.4 1.0C. and E. Europe 2.4 2.5 2.8Russia 3.7 1.5 2.0China 8.2 7.7 7.5India 5.9 4.4 5.4ASEAN-5 5.5 5.0 5.1M. East and N. Africa 3.4 2.4 3.3Sub-Saharan Africa 5.8 5.1 6.1L. America 3.6 2.6 3.0World 3.5 3.0 3.7

Source: IMF

15 THE SHIPPING MARKET ENVIRONMENT14 THE SHIPPING MARKET ENVIRONMENT

Th e strengthening in the US, and the stabilization of China, prevented a potentially accelerating slowdown in emerging markets from taking place. For the fi rst time since 2010, lead-ing economic indicators were uniformly in expansion mode and heading higher at the end of the year.

2014: THE END OF THE DAWNS OF FALSE RECOVERY?Like the preceding three years there was a sense of optimism as the New Year got underway. Th is time around, however, there is more convincing data to support that something positive is going on. 2013 was a year devoid of any kind of crisis and the uniform strength seen in fi nancial markets during the second half of last year indicate a greater degree of conviction.

Nevertheless, there are still plenty of reasons for caution as 2014 begins. Equity markets have begun the year on a wobbly note, fearing that a new fi nancial crisis could be brewing in emerging markets as the prospects for monetary tightening draw nearer. Mature economies continue to have their own challenges. Th e present macro-economic situation is very diff erent from “nor-mal” due to the challenging mix of high debt levels, fragile bank-ing systems and volatile capital fl ows amid continuing very high unemployment. Th ese are all still potent triggers for continued macroeconomic volatility, which, inadvertently, will be negative for tonnage demand.

We look for the world economy to overcome these challenges. Th e fi scal “drag” in the US and Europe should be smaller and we believe Chinese authorities have the will and ability to handle domestic challenges. With authorities in all regions seemingly willing to err on the side of too much stimulus in the short- term, this should help emerging markets overcome their chal-lenges and in sum we expect that 2014 will be the fi rst year since 2010 in which global growth forecasts will have to be upgraded, and that should be good news for all of shipping.

SHIPPING MARKET PROSPECTS: CRISIS, WHAT CRISIS? With the world economy on an upswing and a signifi cantly lower orderbook, shipping should be able to begin saying good-bye to the Financial Crisis and its aft ershocks. We expect an upswing in capacity utilization and moderately higher rates in most segments.

Th e single biggest risk factor hanging over the shipping indu-stry is China. Th e Middle Kingdom was important before the Financial Crisis, but has become even more important since the Crisis, generating more than half of total seaborne trade growth since 2009. Speculations abound that the country could be fac-ing its own fi nancial crisis as a result of imbalances following the infrastructure boom. Th e shipping industry must be alert if a slowdown begins to gather momentum in 2014. While the less-dynamic, mature economies helped avert a deeper slump in 2013, tonnage demand growth would likely suff er if the emerging economies are replaced as growth leaders. Th at in turn would delay the shipping’s return to profi tability.

Th ere are also challenges within the industry itself. Th e biggest one being how to manage the combination of underutilized shipyards and the seemingly abundant availability of private eq-uity capital searching for att ractive “yield”.

For the new market up-cycle to broaden and blossom, the in-dustry must continue to pursue a path of prudent capacity ex-pansion. Th e next two years should give us precisely that, which means that shipping is poised to regain some of its losses in 2014 and 2015. Th e duration of the new up-cycle is of course unknown, but, to a great extent the fate of the industry lies in its own hands.

Ole-Rikard HammerHead of Research, RS Platou Economic Research

GLOBAL ECONOMIC GROWTH 2004-2014FORECASTS AND ACTUAL GROWTH RATES

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20142013201220112010200920082007200620052004

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SUPPLY, DEMAND AND UTILIZATION RATE 1990-2013WORLD MERCHANT FLEET

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13121110090807060504030201009998979695949392919070

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17 THE OFFSHORE SUPPORT VESSEL (OSV) MARKET (FROM RS PLATOU ASA’S ANNUAL REPORT 2014)16 THE SHIPPING MARKET ENVIRONMENT

➤

THE OFFSHORE SUPPORT VESSEL (OSV) MARKET

BETTER THAN EXPECTEDNORTH SEA PSV MARKETIncreasing off shore activity in the North Sea helped to boost PSV demand and also tighten the North Sea PSV market in 2013. We estimate PSV utilization to have risen 2 percent in 2013, averag-ing 90 percent through the year. Large PSVs achieved a utiliza-tion rate of 96 percent, while medium-sized vessels averaged 81 percent in 2013. Th e rising utilization rates were refl ected in day rates. Term rates and spot rates for large PSVs increased 11 per-cent and 18 percent respectively in 2013 compared to 2012.

Th e rise in North Sea off shore activity could be observed through the rising rig count. In 2013, an additional fi ve fl oaters and two jackups came on contract in the North Sea. Th e number of wells drilled in the North Sea increased in parallel with this, with fi g-ures revealing that 389 wells (UK and Norway) were drilled throughout the year, an increase of 10 percent compared to 2012. A potential sharp rise in PSV utilization was, however, diluted by signifi cant growth in the PSV fl eet. Th e North Sea PSV fl eet in-creased by 24 units, a rise of 11 percent year-on-year.

INTERNATIONAL OSV DEMAND (PSV>1000DWT + AHTS 4-9,999 BHP) Rising off shore activity was not restricted exclusively to the North Sea. On a global basis the rig count increased by 8 percent, with jackups on contract rising 12 percent and fl oaters climb-ing 5 percent. Increasing off shore activity clearly contributed to the absorption of signifi cant OSV fl eet growth. Th e global OSV fl eet is estimated to have grown by 9 percent in 2013. A further breakdown shows the PSV fl eet grew 13 percent and the AHTS 4-9,999 bhp fl eet (cargo work being the mainstay of this type of vessels) increased by 4 percent in 2013. At the same time day rates in most regions were relatively unchanged, but there were some regional diff erences:

Term rates in the US Gulf of Mexico across the PSV vessel catego-ries climbed by close to 18 percent across the year. Demand was driven by a rising UDW rig count. Floaters on contract rose in the US Gulf from 31 units on contract in 2012 to 37 units on contract in 2013. At the same time the Jones Act eff ectively blocked in-ternational vessels from entering US waters, thus limiting supply growth.

One market, which is in some respects stagnating, is Brazil. Th e fl oater rig count , for example, dropped by nearly 10 percent in

2013. However, our fi gures show that the number of fi xtures concluded in Brazil in 2013 has, started to recover, but remains substantially below fi gures recorded in 2010 and 2011. Term-rates are still languishing and dropped 4 percent in 2013 (in an infl ationary environment), with some vessels even leaving Brazil to trade in other regions.

FUTURE OSV DEMAND DRIVEN BY AN EXPANDING MODU FLEETBoth shallow and deepwater off shore activity is likely to propel PSV demand further in the period 2014 and 2015. As is well known, discoveries of oil and gas in deep-water (>3000ft ) have been bountiful. As a result, signifi cant investments in mobile off shore drilling units (MODUs) to help explore and develop deep-water oil and gas resources have been made. In total, more than 100 units have been delivered in the last fi ve years and the orderbooks are currently indicating that 35 and 27 units will be delivered in 2014 and 2015, respectively. Having said this, the fl oater market is facing some headwinds (as described in the rig section), but the large contract backlog of rig owners should keep fl oater utilization at a high level. In shallow water we also expect increases in demand, with the redevelopment of older fi elds be-ing the main driver (see rig section).

NORTH-SEA AHTS MARKET (>12,000BHP)Expectations concerning the North-Sea AHTS market are be-ing raised once more, in tandem with increases in day rates. Spot rates of the 16,000+ bhp units averaged nearly GBP 36,000 in 2013, an increase of 50 percent compared to 2012. Term-rate estimates on an annual average basis were fl at in 2013 compared to 2012. Th e annual averages hide, however, that term rates bot-tomed out early in the year and rose 20 percent by the end of the year. Term-rates for a 20,000+ bhp unit are estimated to have moved from GBP 29,000 in January to GBP 35,000 by the end of the year.

It is anticipated that North Sea AHTS demand will strengthen going forward. High rig fi xing activity, as seen on the Norwe-gian Continental Shelf, has given excellent visibility in terms of rig activity over the next few years. We estimate that the rig count on the NCS will rise by seven jackups and six fl oaters by the end of 2015. Th e UK jackup sector also looks promis-ing aft er high fi xing activity in 2013. An increasing rig count is likely to generate further rig moves and hence AHTS demand.

19 THE OFFSHORE SUPPORT VESSEL (OSV) MARKET18 THE OFFSHORE SUPPORT VESSEL (OSV) MARKET

It must, however, be noted that many of the new fl oaters enter-ing the North Sea are both Dynamically Positioned (DP) and conventionally moored. Th ese rigs tend to have a lower AHTS intensity. Off shore construction activity, as a result of increased upstream investments and new projects being sanctioned, will also generate further seasonal demand for the AHTS vessels in the period 2014-15.

THE ARCTIC POTENTIALAHTS demand (but also PSV demand) is expected to receive a signifi cant boost from increasing off shore activity in the oil and gas basins of the Arctic. Due to the remote nature of the region and Arctic-specifi c challenges, the vessel intensity per rig is much higher than in other regions. Past experience from the Cairn Greenland campaigns indicates that each rig operating in Greenland will require three suitably sized and specifi ed AHTS vessels for ice management. Due to the challenges in the Arctic, charterers will generally require top-end tonnage, which will, in most cases, be sourced from the North Sea market.

Although the timing of off shore activity in Arctic basins can be challenging to estimate, some Arctic campaigns for 2014 and 2015 have been booked already. Th e Exxon-Rosneft campaign in the Kara Sea will run in both 2014 and 2015. Other Russian projects are also planned, but new Greenland campaigns will probably not occur before 2015. AHTS vessels representing nearly 15 percent of the North Sea fl eet are already booked for Arctic activity in 2014.

NEW JACKUPS AND FPSOS DRIVING MEDIUM-SIZED AHTS DEMANDAs with the North Sea, parts of the global AHTS market are also emerging from cyclical lows. Term rates for medium-sized tonnage (e.g. 12,000bhp) averaged USD 22,300 in 2013

in South East Asia, an increase of nearly 20 percent compared to 2012.

Jackup demand, which is a main driver for such tonnage, has also grown considerably in South East Asia, where many of the vessels are located. Moreover, these assets are likely to see a fur-ther demand boost as they will be required to service the more than 130 new jackups, which according to the orderbook, will enter service in the period 2014-16. Generally speaking, the new jackups are larger than before and will also require larger service vessels.

At the same time, medium-sized AHTS vessels are being uti-lized for tanker assist duties in connection with fl oating produc-tion units. Th e increasing use of FPSOs and subsea solutions for deepwater developments is driving demand for this segment. We expect the FP fl eet to expand by 5 percent in 2014 and 6 percent in 2015.

FLEET GROWTH MITIGATED BY DELAYSExcessive supply growth, especially of the PSV fl eet, has been the concern of many OSV owners and investors. Th ese con-cerns are based on the considerable PSV orderbook. Last year (2013), for example, 229 PSVs of various sizes were scheduled for delivery. Vessel deliveries from yards were, however, exten-sively delayed.

Inexperience, especially at new Asian yards and especially in the fi nal construction stages, is cited as the main reason for delays. Furthermore, anecdotal evidence suggests that labor rotation at yards is high, thus preventing many yards from progressing along the ‘learning curve’ at the desired rate. Th e latest quarter is, how-ever, showing a rise in deliveries. If this is an actual lift in produc-tivity, then PSV fl eet growth could be accelerating further.

NORTH SEA TONNAGE 2004–2013AHTS AVERAGE T/C RATES (REPORTED AND ESTIMATED)

NORTH SEA TONNAGE 2004–2013PSV AVERAGE T/C RATES (REPORTED AND ESTIMATED)

0

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10

15

20

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30

35

40

45£1,000 per day

16+ BHP

20,000+ BHP

10-15,999 BHP

8-10,000 BHP

04 05 06 07 08 09 10 11 12 13

£1,000 per day

900+ m2 deck area

3,100+ dwt

750-899 m2

deck area

2,200 -3,099dwt

500-749 m2

deck area

04 05 06 07 08 09 10 11 12 130

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15

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30

1,500-2,199 dwt

No. of vessel In Service OrderbookAHTS 4-7,999 bhp 1,189 109AHTS 8-9,999 bhp 220 17AHTS 10-15,999 bhp 323 20AHTS 16-19,999 bhp 116 10AHTS 20,000+ bhp 74 14AHTS total 1,922 170PSV <500 m2 393 81PSV 500-749 m2 472 68PSV 750-899 m2 123 91PSV 900+ m2 307 142PSV total 1,295 382Grand total 3,217 552

AHTS/PSV FLEET OVERVIEW, END 2013AHTS/PSV NEW ORDERS PER YEAR

No. of vessels

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13121110090807060504

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Th e scrapping/removal of AHTS vessels picked up in 2013 and we recorded 16 vessels scrapped, representing just below 1 per-cent of the total fl eet. Scrapping/removals remains therefore in-signifi cant, despite the aging fl eet and increasing focus on vessel age and specifi cation. Only two PSVs were recorded scrapped in 2013.

With this in mind, and if the trends continue, we can expect 170-180 PSVs to be delivered in 2014/15. In addition, 60-70 smaller AHTS vessels (<10,000bhp) are likely to be launched. In other words we expect the OSV fl eet to grow by 7-9 percent in both 2014 and 2015. Th e current AHTS orderbook (>10,000bhp) is indicating that 35 units will be delivered in 2014, with nine more following in 2015. Given the above trends in delays and scrap-ping/removals, we expect the total AHTS fl eet will probably grow by close to 4-5 percent in 2014 and 2015.

THE OSV MARKET IS FAIRLY BALANCEDTh e global OSV market balance is expected to remain stable through 2014 and 2015. However, some regional variations are expected, due to local regulations and content requirements. Th e main driver of demand will still be the large number of new UDW fl oaters entering service through 2014 and 2015. Th e new UDW drillships, are likely to be serviced by larger sized DP II PSVs. Oil and gas companies’ safety concerns are also driving demand for high specifi cation modern units. Such vessels are likely to com-mand a premium in contract terms.

In the North Sea, the PSV market is expected to tighten due to continued demand growth emanating from increases in rigs on contract and a slowdown in PSV fl eet growth. Increasing de-mand in Arctic regions will add to demand in 2014 and 2015. Relocation of vessels to the North Sea may be a risk to this scenario.

AHTS FLEET UTILIZATION IS EXPECTED TO CLIMBTh e estimated global AHTS utilization (>10,000bhp) is expect-ed to tighten in 2014 and 2015. Th e diff erent AHTS vessel size categories will, however, be exposed to the expected growth in varying degrees.

Th e prospects for medium-sized AHTS vessels seem very good, as the renewal of the jackup fl eet will continue in the period 2014-15, and further fl oating production units will enter service. At the same time the number of vessels on order for this asset class is relatively low and we therefore expect utilization to keep rising in the period 2014-15. However, the larger AHTS vessels, which are mostly in service with conventionally moored fl oaters, may face some headwind due to a soft er fl oater market. Th is may lead to increased substitution through the asset classes and a more mod-est increase in day rates for the mid-size AHTS vessels.

Smaller sized AHTS vessels are not seen to have the same demand drivers in place. Th ese vessels are oft en too small, for example, to support the new and larger jackups that are being delivered. At the same time this asset class is meeting increased competition from PSVs and therefore we expect day rates to remain largely unchanged in 2014 and 2015.

Th e North Sea AHTS market balance is expected to tighten con-siderably in 2014 and 2015. As mentioned earlier, Arctic explo-ration campaigns will absorb considerable tonnage in 2014 and 2015. Th e Exxon-Rosneft campaign alone will absorb nearly 10 percent of the North Sea AHTS fl eet. Day rates are likely to re-bound to previous highs, and as the increases in activity are during the summer season, the market is likely to become more seasonal.

Sven ZieglerRS Platou Off shore Research

PROJECTS PER YEAR UNCALLED TOTAL COMMITTED PROJECT NAME NO. OF VSLS. ESTABLISHED CURRENCY PROJECT PRICE PAID IN CAPITAL CAPITAL CAPITAL

PROJECTS ESTABLISHED 2004

Aries Supply I KS 1 April 2004 NOK 201 046 770 42 300 000 15 000 000 57 300 000 Ross Cape DIS 1 October 2004 USD 17 350 000 3 850 000 1 000 000 4 850 000 International Container Ships KS 2 November 2004 USD 66 260 000 12 260 000 4 150 000 16 410 000 J.B.U OBO I KS 1 December 2004 USD 36 580 000 7 780 000 5 000 000 12 780 000 No. of vessels 5 Total NOK 201 046 770 42 300 000 15 000 000 57 300 000 No. of projects 4 Total USD 120 190 000 23 890 000 10 150 000 34 040 000 Total EUR - - - - Project price USD 150 018 898 30 165 964 12 375 519 42 541 484


Eidsiva Trucker KS 1 February 2005 EUR 10 900 000 2 470 000 2 000 000 4 470 000 Mount Faber KS 4 April 2005 USD 80 900 000 13 325 000 0 13 325 000 Norwegian Shipping DIS April 2005 USD 19 200 000 13 700 000 5 500 000 19 200 000 Goliat Roro KS 1 May 2005 EUR 9 000 000 1 960 000 1 500 000 3 460 000 Global Cable KS 2 June 2005 USD 12 320 000 2 870 000 3 000 000 5 870 000 Bergshav Chemical KS 2 July 2005 EUR 20 470 000 4 470 000 2 200 000 6 670 000 Volstad Supply I KS 1 August 2005 NOK 262 620 000 75 050 000 20 000 000 95 050 000 Scandinavian Bulkers KS 5 September 2005 EUR 28 926 000 6 776 000 6 000 000 12 776 000 Volstad Supply II KS 1 November 2005 NOK 262 620 000 75 050 000 20 000 000 95 050 000 Agder Ocean Reefer KS 3 November 2005 USD 27 750 000 6 150 000 0 6 150 000 Celine I OBO DIS 1 November 2005 USD 12 470 000 1 970 000 3 000 000 4 970 000 Cement Ship II DIS 1 November 2005 USD 19 800 000 5 575 000 4 000 000 9 575 000 Multipurpose Bulkers DIS 4 December 2005 EUR 27 145 000 4 695 000 4 500 000 9 195 000 SBS Tempest KS 1 December 2005 NOK 134 300 000 29 300 000 10 000 000 39 300 000 SBS Torrent KS 1 December 2005 NOK 141 175 000 31 975 000 10 000 000 41 975 000 Green Pacific DIS 3 December 2005 USD 30 590 000 6 090 000 8 000 000 14 090 000 No. of vessels 31 Total NOK 800 715 000 211 375 000 60 000 000 271 375 000 No. of projects 16 Total USD 203 030 000 49 680 000 23 500 000 73 180 000 Total EUR 96 441 000 20 371 000 16 200 000 36 571 000 Project price USD 447 167 112 107 807 795 52 940 994 160 748 789


Norwegian Shipping II DIS January 2006 USD 8 000 000 5 200 000 2 800 000 8 000 000 SBS Typhoon KS 1 January 2006 NOK 167 050 000 36 650 000 25 000 000 61 650 000 Japan Offshore DIS 3 April 2006 USD 37 150 000 8 150 000 3 000 000 11 150 000 Aries Supply II KS 1 April 2006 NOK 155 000 000 33 000 000 21 000 000 54 000 000 European Venture DIS 2 April 2006 USD 46 325 000 9 965 000 5 000 000 14 965 000 NFC Offshore DIS 4 April 2006 USD 74 500 000 24 480 000 8 000 000 32 480 000 Oceanlink Offshore DIS 1 May 2006 USD 13 250 000 2 750 000 2 500 000 5 250 000 Panda Chemical Oil DIS 1 June 2006 USD 19 545 000 4 345 000 1 500 000 5 845 000 Western Chemical KS 3 July 2006 EUR 32 775 000 7 095 000 5 750 000 12 845 000 Singapore Offshore DIS 5 August 2006 USD 129 100 000 8 500 000 8 000 000 16 500 000 Oceanlink Offshore II DIS 1 August 2006 USD 12 000 000 2 250 000 2 250 000 4 500 000 Japan Offshore II DIS 3 September 2006 USD 39 075 000 8 775 000 7 825 000 16 600 000 NFC Offshore III DIS 2 October 2006 USD 46 046 000 14 186 000 8 666 000 22 852 000 Japan Offshore III DIS 2 October 2006 USD 47 340 000 10 540 000 9 430 000 19 970 000 Oceanlink Offshore III DIS 2 October 2006 USD 28 500 000 5 200 000 9 600 000 14 800 000 Agder Ocean Reefer II DIS 2 November 2006 USD 19 500 000 4 500 000 0 4 500 000 Northern Offshore DIS 2 November 2006 USD 39 000 000 8 400 000 6 740 000 15 140 000 Norwegian Product DIS 2 November 2006 USD 32 865 000 7 265 000 6 500 000 13 765 000 Global Cable II DIS 2 December 2006 USD 45 400 000 9 400 000 6 000 000 15 400 000 No. of vessels 39 Total NOK 322 050 000 69 650 000 46 000 000 115 650 000 No. of projects 19 Total USD 637 596 000 133 906 000 87 811 000 221 717 000 Total EUR 32 775 000 7 095 000 5 750 000 12 845 000 Project price USD 728 855 930 153 651 288 102 186 000 255 837 288


Ross Chemical II DIS 5 February 2007 USD 119 100 000 25 100 000 12 000 000 37 100 000 Atlantic Guardian DIS 1 February 2007 USD 42 880 000 8 100 000 8 000 000 16 100 000 NFC Panamax DIS 1 March 2007 USD 24 650 000 4 650 000 0 4 650 000 Orchard Offshore DIS 4 March 2007 USD 43 800 000 7 800 000 2 125 000 9 925 000 Raffles Offshore DIS 1 March 2007 USD 45 945 000 12 445 000 4 500 000 16 945 000 Norwegian Offshore DIS 4 April 2007 USD 65 470 000 21 900 000 6 000 000 27 900 000 Med Ethylene DIS 2 May 2007 USD 27 875 000 6 275 000 4 500 000 10 775 000 Ullswater Subsea DIS 1 May 2007 USD 48 820 000 12 820 000 5 000 000 17 820 000 European Venture II DIS 1 July 2007 USD 11 370 000 3 370 000 6 000 000 9 370 000 Tioman Offshore DIS 1 July 2007 USD 51 150 000 11 150 000 0 11 150 000 Sentosa Offshore DIS 4 July 2007 USD 46 350 000 8 300 000 0 8 300 000

UNCALLED TOTAL COMMITTED PROJECT NAME NO. OF VSLS. ESTABLISHED CURRENCY PROJECT PRICE PAID IN CAPITAL CAPITAL CAPITAL

PROJECTS ESTABLISHED 2007 CONTINUED

Southern Chemical DIS 3 July 2007 EUR 88 200 000 10 350 000 10 000 000 20 350 000 Bovey Offshore Ltd 4 August 2007 USD 43 600 000 10 500 000 0 10 500 000 Asian Bulkers DIS 3 October 2007 USD 142 875 000 49 075 000 0 49 075 000 Short Sea Bulkers DIS 4 November 2007 EUR 24 800 000 4 550 000 4 500 000 9 050 000 Ross Chemical IV DIS 2 November 2007 USD 53 000 000 18 000 000 0 18 000 000 Dongguan Chemical Tankers DIS 1 November 2007 USD 32 750 000 7 150 000 7 000 000 14 150 000 Pantheon Chemical DIS 1 November 2007 EUR 31 000 000 5 160 000 5 500 000 10 660 000 No. of vessels 43 Total NOK 0 0 0 0 No. of projects 18 Total USD 799 635 000 206 635 000 55 125 000 261 760 000 Total EUR 144 000 000 20 060 000 20 000 000 40 060 000 Project price USD 996 467 765 234 054 898 82 462 884 316 517 782


Marineline Chemical DIS 3 February 2008 USD 79 850 000 12 680 000 0 12 680 000 Edda Accommodation DIS 1 February 2008 EUR 126 500 000 44 000 000 12 000 000 56 000 000 NFC AHTS Ltd. 2 March 2008 USD 70 520 000 24 600 000 0 24 600 000 Bukit Timah Offshore DIS 3 May 2008 USD 125 269 250 29 269 250 0 29 269 250 Mountbatten Offshore DIS 2 May 2008 USD 109 134 000 25 134 000 0 25 134 000 Bovey Offshore Ltd. 4 May 2008 USD 42 650 000 14 475 000 0 14 475 000 Semakau Producer DIS 1 July 2008 USD 20 400 000 20 400 000 0 20 400 000 European Venture III DIS 1 July 2008 USD 17 720 000 5 720 000 5 000 000 10 720 000 Golden Kamsar DIS 1 August 2008 USD 67 294 000 17 294 000 12 500 000 29 794 000 Jimbaran DIS 1 September 2008 USD 54 200 000 9 035 000 0 9 035 000 Seminyak DIS 2 September 2008 USD 108 963 000 18 618 000 14 000 000 32 618 000 JBUS Offshore DIS 2 September 2008 USD 60 000 000 27 000 000 0 27 000 000 Oceanlink Reefer III DIS 1 September 2008 USD 20 200 000 5 200 000 5 000 000 10 200 000 Agder Ocean Reefer III AS 7 October 2008 USD 53 500 000 10 000 000 7 000 000 17 000 000 No. of vessels 31 Total NOK 0 0 0 0 No. of projects 14 Total USD 829 700 250 219 425 250 43 500 000 262 925 250 Total EUR 126 500 000 44 000 000 12 000 000 56 000 000 Project price USD 1 004 270 250 280 145 250 60 060 000 340 205 250


3 offshore barges 3 July 2009 USD 135 000 000 10 000 000 10 000 000 ICON Victorious 1 September 2009 USD 42 500 000 18 750 000 18 750 000 Diving Bell 1 September 2009 USD 100 000 000 10 000 000 10 000 000 No. of vessels 5 Total NOK 0 0 0 0 No. of projects 3 Total USD 277 500 000 127 750 000 0 127 750 000 Total EUR 0 0 0 0

Project price USD 277 500 000 127 750 000 - 127 750 000


Octavian Bulker DIS 1 September 2010 USD 37 400 000 16 000 000 0 16 000 000 Shanghai Bulker DIS 1 August 2010 USD 9 000 000 1 670 000 1 670 000 Saragol Tanker 1 DIS 1 July 2010 USD 48 237 500 17 737 500 0 17 737 500 Saragol Tanker 2 DIS 1 November 2010 USD 54 312 500 18 812 500 2 000 000 20 812 500 No. of vessels 4 Total NOK 0 0 0 0 No. of projects 4 Total USD 148 950 000 54 220 000 2 000 000 56 220 000 Total EUR 0 0 0 0 Project price USD 148 950 000 54 220 000 2 000 000 56 220 000


Northern Supply DIS 88 000 000 20 800 000 19 280 000 40 080 000 Redfish Offshore 45 000 000 9 000 000 0 9 000 000 No. of vessels 4 Total NOK 0 0 0 0 No. of projects 2 Total USD 133 000 000 29 800 000 19 280 000 49 080 000 Total EUR 0 0 0 0 Project price USD 133 000 000 29 800 000 19 280 000 49 080 000


Singapore Supply DIS 42 700 000 10 240 000 8 580 000 18 820 000 Vestland Marine PSV DIS 1 650 000 1 650 000 0 1 650 000 Industrial Shipping DIS 25 950 000 5 750 000 0 5 750 000 No. of vessels 9 Total NOK 0 0 0 0 No. of projects 3 Total USD 44 350 000 11 890 000 8 580 000 20 470 000 Total EUR 25 950 000 5 750 000 0 5 750 000 Project price USD 78 423 478 19 440 000 8 580 000 28 020 000

21 PROJECTS SUMMARY20 PROJECTS SUMMARY

➤

UNCALLED TOTAL COMMITTED PROJECT NAME NO. OF VSLS. ESTABLISHED CURRENCY PROJECT PRICE PAID IN CAPITAL CAPITAL CAPITAL


Feeder Container Vessel DIS 4 300 000 4 300 000 0 4 300 000 Sudong Offshore DIS 26 000 000 8 200 000 0 8 200 000 Panda Chemical II DIS 4 315 000 1 815 000 2 000 000 3 815 000 No. of vessels 3 Total NOK 0 0 0 0 No. of projects 3 Total USD 34 615 000 14 315 000 2 000 000 16 315 000 Total EUR Project price USD 34 615 000 14 315 000 2 000 000 16 315 000


High Yield Shipping DIS 6 000 000 6 000 000 0 6 000 000 Vestland Marine Seismic DIS 1 550 000 1 550 000 0 1 550 000 CIT-Grieg 49 000 000 49 000 000 No. of vessels 2 Total NOK 0 0 0 0 No. of projects 3 Total USD 56 550 000 56 550 000 0 7 550 000 Total EUR 0 Project price USD 56 550 000 56 550 000 - 56 550 000

PROJECTS PER YEAR cont.

23 PROJECTS SUMMARY

TOTAL PROJECTS BY SEGMENT

TOTAL PROJECTS BY EMPLOYMENT

Other 9%

Product tankers 9%

Seismic 6%

Bulk carrier 18%

LPC/Cemical tankers 17%

Offshore/Supply 35%Container 5%

Funds 3%Asset play 6%

Timecharter 12%Bareboat 79%

EXISTING PROJECTS PER SEGMENTPROJECTS TOTAL PROJECT PRICE

Offshore/Supply

SBS Torrent KS NOK 144 900 000European Venture DIS USD 46 325 000European Venture III DIS USD 17 720 000Singapore Offshore DIS USD 129 100 000Orchard Offshore DIS USD 43 800 000Ullswater Subsea DIS USD 12 820 000Sentosa Offshore DIS USD 46 350 000Bovey Offshore Ltd USD 43 600 000 Bukit Timah Offshore DIS USD 125 269 250 Northern Supply DIS USD 84 000 000Singapore Supply DIS USD 44 400 000Sudong Offshore DIS USD 26 000 000

LPG / Chemical tankers

Panda Chemical II DIS USD 4 315 000Med Ethylene DIS USD 6 275 000Southern Chemical DIS EUR 88 200 000Dongguan Chemical Tankers DIS USD 32 750 000Seminyak DIS USD 108 963 000Blue Mountain Tankers DIS USD 119 100 000

Bulk carriers

NFC Panamax DIS USD 24 650 000Asian Bulkers DIS USD 142 875 000Golden Kamsar DIS USD 67 294 000Octavian Bulker DIS USD 37 000 000Industrial Shipping DIS EUR 34 000 000CIT-Grieg USD 49 000 000

PROJECTS TOTAL PROJECT PRICE

Seismic

Atlantic Guardian DIS USD 42 880 000Vestland Marine Seismic DIS USD 1 550 000

Other

MS Nordstjernen DIS USD 1 000 000Agder Ocean Reefer KS USD 27 750 000Platou Shipinvest I DIS USD

Container Feeder Container Vessel DIS USD 4 300 000High Yield Shipping DIS USD 6 000 000 Product tankers Norwegian Product DIS USD 32 865 000Saragol Tankers 1 DIS USD 56 000 000Saragol Tankers 2 DIS USD 49 000 000

Segment

Offshore/Supply 12 35 %LPG/Chemical tankers 6 18 %Bulk carrier 6 18 %Seismic 2 6 %Product tankers 3 9 %Container 2 6 %Other 3 9 % 34 100 %

Type

Bareboat 27 79 %Timecharter 4 12 %Asset play 2 6 %Funds 1 3 % 34 100%

PROJECTS SOLD ACCUMULATED PROJECTS SOLD ESTABLISHED PAID IN CAPITAL DISTRIBUTIONS IRR P.A. SOLD

Aries Supply I KS April 2004 NOK 42 300 000 125 499 000 66 % 2007NFC Offshore DIS April 2006 USD 16 280 000 32 500 000 477 % 2007Ross Cape DIS November 2004 USD 3 850 000 6 088 300 41 % 2007International Containerships KS November 2004 USD 12 260 000 18 802 700 96 % 2005Aries Supply II KS April 2006 NOK 33 000 000 46 560 000 64 % 2007NFC Offshore III DIS October 2006 USD 13 100 000 16 400 000 26%*) 2007J.B.U OBO I KS December 2004 USD 7 780 000 6 608 000 37 % 2007Japan Offshore DIS April 2006 USD 8 150 000 1 400 000 70%*) 2007Japan Offshore II DIS September 2007 USD 350 000 3 166 300 733%*) 2007Japan Offshore III DIS October 2007 USD 1 110 000 1 635 000 48.5%*) 2007Northern Offshore DIS December 2007 USD 8 400 000 21 000 000 153 % 2007Celine I OBO DIS November 2007 USD 1 970 000 4 250 000 57 % 2007Goliat Roro KS May 2005 EUR 1 960 000 0 -25%*) 2007Semakau Producer DIS July 2008 USD 20 400 000 17 750 000 N/A 2009Global Cable KS June 2005 USD 2 870 000 7 625 182 28 % 2009Scandinavian Bulkers DIS September 2010 EUR 6 776 000 6 776 000 0 % 2010SBS Tempest KS September 2005 NOK 29 300 000 84 150 000 30 % 2011Norwegian Offshore I DIS April 2007 USD 23 025 000 23 325 000 0 % 2011Eidsiva Trucker KS February 2005 EUR 6 180 000 - -100%*) 2010JBUS Offshore DIS September 2008 USD 32 500 000 35 000 000 3 % 2011Bergshav Chemical DIS July 2005 EUR 4470000 840 000 -48%*) 2011Western Chemical KS July 2006 EUR 7095000 1 650 000 -60%*) 2011European Venture II DIS July 2007 USD 3 370 000 6 964 845 20 % 2011Mountbatten DIS July 2008 USD 26 698 000 26 300 000 -8%*) 2011Norwegian Shipping DIS April 2005 USD 13 700 000 19 317 994 15 % 2012Tioman Offshore DIS July 2007 USD 10 000 000 12 050 000 10 % 2011Shanghai Bulkers DIS August 2010 USD 1 670 000 2 690 000 55 % 2011Volstad Supply I DIS August 2005 NOK 40 000 000 130 000 000 27 % 2011Volstad Supply II DIS November 2005 NOK 55 250 000 200 000 000 38 % 2011Cement Ship II DIS November 2005 USD 5 575 000 12 640 000 19 % 2013Norwegian Shipping II DIS April 2005 USD 5 200 000 7 196 500 8 % 2013Vestland Marine DIS January 2012 USD 1 600 000 2 170 000 30 % 2013Mount Faber KS April 2005 USD 13 004 000 36 585 000 32 % 2013Panda Chemical Oil DIS June 2006 USD 5 845 000 1 565 000 -53 % 2013Global Cable II DIS January 2006 USD 9 400 000 27 058 101 21 % 2014SBS Typhoon KS January 2006 NOK 36 650 000 106 550 000 20 % 2014Marineline Chemical DIS February 2008 USD 18 350 000 - -100%*) 2014

*) Return on equity

CAPITAL PER YEAR - USD

ACCUMULATED CAPITAL - USD

Uncalled capital

Paid in capital

Total project price

Mill

0

200

400

600

800

1,000

1,200

20142013201220112010200920082007200620052004

Mill

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

20142013201220112010200920082007200620052004

Uncalled capital

Paid in capital

Total project price

22 PROJECTS SUMMARY

PROJECTS ESTIMATED RETURNS ACCUMULATED DISTRIBUTIONS ESTIMATED ESTIMATED ESTIMATED ACCUMULATED IN % OF SHARE PRICE IRR SELLER IRR FORPROJECTS ESTABLISHED PAID IN CAPITAL DISTRIBUTIONS PAID IN CAPITAL PER 1% PER 1% BUYER

Asian Bulkers DIS October 2007 USD 48 850 000 - 0 % 30 000 -44 % N/AAtlantic Guardian DIS February 2007 USD 8 100 000 4 100 000 51 % N/A N/A N/ABovey Offshore Ltd August 2007 USD 21 375 000 31 850 000 149 % 186 750 16 % 16 %Bukit Timah Offshore DIS May 2008 USD 29 269 000 21 250 000 73 % 330 000 13 % 16 %Dongguan Chemical Tankers DIS December 2007 USD 7 150 000 4 225 000 59 % 42 500 3 % 16 %European Venture DIS April 2006 USD 9 965 000 8 090 000 81 % 188 000 17 % 17.5 %European Venture III DIS July 2008 USD 5 720 000 9 300 000 163 % 31 000 23 % 30 %Feeder Container Vessel DIS May 2013 USD 4 300 000 - 0 % 43 000 0 % N/AGolden Kamsar DIS August 2008 USD 23 694 000 2 500 000 11 % 219 000 1 % 15 %High Yield Shipping DIS April 2014 USD 6 000 000 0 % 60 000 0 % 10 %Industrial Shipping DIS May 2012 USD 5 750 000 355 515 6 % N/A N/A N/AMed Ethylene DIS May 2007 USD 6 275 000 6 380 000 102 % 14 750 4 % 24 %MS Nordstjernen DIS November 2012 NOK 6 000 000 1 915 000 32 % 51 500 12 % 10 %RTS Panamax DIS March 2007 USD 4 650 000 3 050 000 66 % 0 -15 % N/ANorthern Supply DIS May 2011 USD 2 180 000 - 0 % 218 000 N/A N/ANorwegian Product DIS November 2006 USD 10 115 000 5 560 000 55 % 86 000 5 % 30 %Octavian Bulker DIS September 2010 USD 16 000 000 1 500 000 9 % 90 250 -7 % 16 %Orchard Offshore DIS March 2007 USD 7 800 000 18 150 000 233 % 11 475 18 % 16 %Panda Chemical Il DIS November 2013 USD 1 815 000 - 0 % 18 150 0 % N/APlatou Shipinvest I DIS October 2007 USD 47 365 930 5 200 000 11 % N/A N/A N/ABlue Mountain Tankers DIS February 2007 USD 36 375 000 - 0 % N/A N/A N/ASaragol Tankers 1 DIS June 2010 USD 17 737 500 7 602 300 43 % N/A N/A N/ASaragol Tankers 2 DIS December 2010 USD 18 812 500 5 920 000 31 % N/A N/A N/ASBS Torrent KS December 2005 NOK 31 975 000 40 700 000 127 % 610 000 19 % 15 %Seminyak DIS September 2008 USD 32 618 000 - 0 % 0 N/A N/ASentosa Offshore DIS July 2007 USD 8 300 000 12 865 000 155 % 75 000 16 % 16 %Singapore Offshore DIS August 2006 USD 7 850 000 10 004 041 127 % 75 000 16 % 16 %Singapore Supply DIS March 2012 USD 10 240 000 - 0 % 102 400 N/A N/ASouthern Chemical DIS July 2007 EUR 16 350 000 1 540 000 9 % 54 000 -16 % 20 %Sudong Offshore DIS October 2013 USD 8 200 000 350 000 4 % 87 000 15 % 15 %Ullswater Subsea DIS May 2007 USD 12 820 000 9 438 400 74 % 158 500 13 % 15 %Vestland Marine Seismic DIS February 2014 USD 1 550 000 100 000 6 % 15 500 20 % 27 %

25 PROJECTS24 PROJECTS SUMMARY

ASIAN BULKERS DIS KEY FIGURES (date of analysis: 30.06.2014) Project Broker: Chris W. Svensson, Corporate Manager: Thomas Ødegård

THE VESSELS

Vessels name: Svenner Slettnes SvinoyType: Supramax Bulk Carrier Supramax Bulk Carrier Supramax Bulk CarrierDWT: 58 000 58 000 58 000Yard: Dayang, China Dayang, China Dayang, ChinaBuilt /delivered: January 2010 July 2010 August 2010Class: BV BV BVFlag: Marshall Island Marshall Island Marshall Island

COMMERCIAL DETAILS

Corporate management: RS Platou Project Finance ASDisponent owner: Scantank ASProject price: USD 123 000 000Paid in capital: USD 45 850 000Uncalled capital: USD 2 150 000

Slettnes og Svinoy SvennerCommencement of CP: January 2013 January 2010Expiry of CP: July 2014 3 months in advanceTC rate per day year USD 8 000 PoolTC charter: AS Klaveness Chartering Bulkhandling Handymax AS

RESIDUAL VALUE SENSITIVITY ON IRR LOW BASE HIGH

Residual value end CP: Estimated IRR:

CASHFLOW 2013 2014E

Operating revenue 8 539 956 10 446 667Operating expenses -6 233 629 -6 265 589Net operating cashfl ow 2 306 327 4 181 078 Interest earned 0 0Interest expenses -1 590 629 -1 693 657Drawdown/ Repayment long term debt -960 000 0Net fi nancial items -2 550 629 -1 693 657Purchase / sale of vessel 0 0Net Projected Cashfl ow -244 302 2 487 421Estimated dividend 0 0

PROJECT BALANCE 01.07.2014

Cash balance 3 310 000Impicit vessel value 68 145 000Total assets 71 455 000Outstanding debt 68 430 000Short term payables 25 000Sellers credit 0Total outstanding debt 68 455 000Estimated project value 3 000 000

Mortgage: USD 86 100 000Sellers Credit: USD 0Balloon: USD 63 000 000Term: 5Quatery-annually instalments USD 1 440 000Interest: 100% fl oating presently at 2,28 % (included margin)

FINANCING COMMENTS

Two vessels are on TC to Klaveness and the third vessel is trading in the Klaveness pool.

Established: October 2007Paid in capital: USD 48 000 000Uncalled capital: USD 0Accumulated dividends: USD 0

Estimated share value per 1%: USD 30 000Last reported sale per 1%: N/AEstimated IRR Buyer: N/AEstimated IRR Seller: N/A

Latent tax benefi t vessel pr 1%: USD 0Latent tax benefi t debt pr. 1%: USD 0

ATLANTIC GUARDIAN DIS KEY FIGURES (date of analysis: 30.06.2014) Project Broker: Morten Astrup, Corporate Manager: Erik Kristian Andresen

THE VESSELS

Vessel name: MV Atlantic GuardianType: Cable / Construction / Seismic vesselGRT / NRT: 7,172 / 2,151Speed: 13,5LDT: 17 495Yard: Van der Geissen-de Noord, The NetherlandsBuilt: 2001 / 2006Class: DNVFlag: Norway

COMMERCIAL DETAILS

Corporate management: RS Platou Project Finance ASDisponent owner: North Sea Shipping ASProject price: USD 42 880 000Paid in capital: USD 8 100 000Uncalled capital: USD 7 000 000BB rate: USD per day year 1: 14 300 USD per day year 2-4: 16 000

Bareboat charter: 4 + 1 + 1 +1 yearsBareboat charterer: North Sea Invest ASCommencement of CP: March 2007Expiry of CP: September 2014

Mortgage: USD 32 000 000Balloon USD 20 750 000Sellers Credit: USD 3 000 000Term: 4 yearsQuarterly instalments: USD 1 - 4: 500 000 USD 5 - 16: 750 000IInterest: 75% of the loan 5,00 % Fixed for the entire fi xed charter period (eksl. margin.) 25% of the loan FloatingSellers Credit 2.00%

FINANCING COMMENTS

The charterer is paying hire on time.The project has been in compliance with the loan agreement and dividend has been paid as planned throughout the BB period. The initial charterparty ended in march 2011, and we have fi xed the vessel on shorter periode.

The commercial manager have bought all shares in the company. The vessel is on contract with EMGS.

Established: January 2007Paid in capital: USD 8 100 000Uncalled capital: USD 7 000 000Accumulated dividends: USD 4 100 000

Estimated share value per 1%: USD 75 500 Last reported sale pr 1%: N/AEstimated IRR Buyer: N/AEstimated IRR Seller: N/A

Latent tax liability vessel pr 1%: USD 0Latent tax liability debt pr. 1%: USD 1 000



CASHFLOW 2014

Operating revenue 0Operating expenses 0Net operating cashfl ow 0

Interest earned 0Interest expenses 0Drawdown/ Repayment long term debt 0Purchase / sale of vessel 0Net fi nancial items 0Net Projected Cashfl ow 0Estimated dividend 0


Cash 1 474 000Implicit vessel value 22 321 000Total assets 23 795 000Outstanding debt 16 295 000Short term payables 0Sellers credit 0Total outstanding debt 16 295 000Estimated Project value 7 500 000


BLUE MOUNTAIN TANKERS DIS KEY FIGURES (date of analysis: 30.06.2014) Project Broker: Axel M. Aas, Corporate Manager: Eva Lise Bjerke

THE VESSELS

Vessel name: Oceanic Indigo Oceanic Crimson Oceanic Coral Oceanic Cerise Oceanic Cyan Oceanic CobaltType: IMOII /III product tankers IMOII /III product tankers IMOII /III product tankers IMOII /III product tankers IMOII /III product tankers IMOII /III product tankersDWT: 11 000 13 000 13 000 13 000 13 000 13 000Capacity (cbm): 13 450 13 450 13 450 13 450 13 450Yard: Penglai Bohai Shipyard Co. Ltd, China Jinse Co. Ltd,. Korea Jinse Co. Ltd,. Korea Jinse Co. Ltd,. Korea Jinse Co. Ltd,. Korea Jinse Co. Ltd,. KoreaDelivery: April 2011 March 2008 April 08 May 2008 June 2008 July 2008Class: ABS ABS ABS ABS ABS ABSFlag: Liberia Liberia Liberia Liberia Liberia

COMMERCIAL DETAILS

Corporate management: RS Platou Project Finance ASDisponent owner: Panoceanic Bulk Carriers UKProject price: USD 120 800 000Paid in capital: USD 25 100 000Uncalled capital: USD 12 000 000

BB rate per day year USD 8 050Bareboat charter: 7 yearsBareboat charterer: A company Guaranteed by Pan Gulf GroupCommencement of CP: March 2008 + 2 months interval per vesselExpiry of CP: Year 2015


Residual value end CP: Estimated IRR for buyer:

CASHFLOW 2014EOperating revenue N/AOperating expenses N/ANet operating cashfl ow N/A Interest earned N/AInterest expenses N/ADrawdown/ Repayment long term debt N/ANet fi nancial items N/ANet projected cash fl owEstimated dividend N/A


Cash N/AImplicit vessel value N/ATotal assets N/AOutstanding debt N/AShort term payables N/ASellers credit N/ATotal outstanding debt N/AEstimated project value N/A

Established: February 2007Paid in capital: USD 36 375 000Uncalled capital: USD 7 000 000Accumulated dividends: USD 0

Estimated share value per 1%: N/ALast reported sale per 1%: N/AEstimated IRR Buyer: N/AEstimated IRR Seller: N/A

Latent tax benefi t vessel pr 1%: N/ALatent tax benefi t debt pr. 1%: N/A

BOVEY OFFSHORE LTD. KEY FIGURES (date of analysis: 30.06.2014) Project Broker: Morten Astrup, Corporate Manager: Benjamin Ryeng-Hansen

THE VESSELS

Vessel names: Topaz Glory Topaz Legend Topaz Jurong Topaz JohorType: AHTS AHTS AHTS AHTSBHP: 5 150 5 150 5 150 5 150Speed: 13 knots 13 knots 13 knots 13 knotsYard: Funing Shipyard, China Funing Shipyard, China Funing Shipyard, China Funing Shipyard, ChinaBuilt: 2010 2010 2010 2010Class: ABS ABS ABS ABSFlag: Marshall Islands Marshall Islands Marshall Islands Marshall Islands

COMMERCIAL DETAILS

Corporate management: RS Platou Project Finance ASDisponent owner: Juniper Marine Services Pte LtdProject price: USD 85 300 000Paid in capital: USD 21 375 000Uncalled capital: USD 0BB rate (average): USD 5 145 pd USD 5 145 pd USD 5 145 pd USD 5 145 pdBareboat charter: 7 years 7 years 7 years 7 yearsBareboat charterer: XT Shipping Ltd XT Shipping Ltd Team III Ltd Team III LtdCommencement of CP: 19.04.2010 29.03.2010 12.07.2010 19.08.2010Expiry of CP: 19.04.2017 29.03.2017 12.07.2017 19.08.2017 RESIDUAL VALUE SENSITIVITY ON IRR LOW BASE HIGH

Residual value end CP: USD 24 000 000 28 000 000 32 000 000 Estimated IRR: 10% 16% 22%

CASHFLOW 2013 2014E 2015E 2016E 2017E

Operating revenue 11 301 000 7 975 000 7 665 000 7 665 000 5 020 000Operating expenses -410 000 -354 000 -357 000 -361 000 -182 000Net operating cashfl ow 10 891 000 7 621 000 7 308 000 7 304 000 4 838 000 Interest earned 2 000 - - - -Interest expenses -1 236 000 -805 000 -832 000 -810 000 -307 000Drawdown/ Repayment long term debt -16 293 000 -9 075 000 -2 912 000 -2 912 000 -16 238 000Net fi nancial items -17 527 000 -9 880 000 -3 744 000 -3 722 000 -16 545 000Purchase/sale of vessel 21 578 000,00 10 750 000,00 - - 28 000 000 Net project cashfl ow 14 942 000 8 491 000 3 564 000 3 582 000 16 293 000Estimated dividend 14 400 000 11 350 000 3 650 000 3 550 000 18 343 000


Cash 2 218 000Impicit vessel value 40 075 000Total assets 42 293 000Outstanding debt 23 518 000Short term payables 100 000Sellers credit - Total outstanding debt 23 618 000Estimated project value 18 675 000

Funing 4 vslMortgage: USD 36 360 000Balloon: USD 20 424 000 Term: 5 yearsQuarterly instalments: USD 1-8: USD 900 000 9-20: USD 728 000Interest mortgage: Pre-del: Libor + 1.50% Post-del: Libor + 2.00%

FINANCING COMMENTSThe charterer has purchase options after year 7 for the vessels.All hire is being paid promptly.The company sold the vessel Rogelio Tide (formerly known as Lewek Labrador) on delivery in 2011.The company sold the vessels Lewek Lion and Lewek Leopard in 2013.The company sold the vessel Lewek Lynx in 2014.

Established: August 2007 / May 2008Paid in capital: USD 21 375 000Uncalled capital: USD 0Accumulated dividends: USD 31 850 000

Estimated share value per 1%: USD 186 750 Last reported sale per 1%: N/AEstimated IRR Buyer: 16%Estimated IRR Seller: 16%



BUKIT TIMAH OFFSHORE DIS KEY FIGURES (date of analysis: 30.06.2014) Project Broker: Chris W. Svensson, Corporate Manager: Benjamin Ryeng-Hansen

THE VESSELS

Vessel name: Swiber Else-Marie Swiber Anne-Christine Swiber Mary-AnnType: AHTS AHTS AHTSBHP: 10 800 10 800 10 800Speed: 14 knots 14 knots 14 knotsYard: China China ChinaBuilt: 2009 2009 2010Class: ABS ABS ABSFlag: Marshall Islands Marshall Islands Marshall Islands

COMMERCIAL DETAILS

Corporate management: RS Platou Project Finance ASDisponent owner: Scantank ASProject price: USD 125 269 250Paid in capital: USD 29 269 250Uncalled capital: USD 0BB rate: USD 15 850 pd USD 15 850 pd USD 15 850Bareboat charter: 10 years 10 years 10 yearsBareboat charterer: Newcruz Offshore Marine Pte Ltd guaranteed by Swiber Holdings LtdCommencement of CP: 27.08.2009 06.01.2010 23.09.2010Expiry of CP: 27.08.2019 06.01.2020 23.09.2020 RESIDUAL VALUE SENSITIVITY ON IRR LOW BASE HIGH


CASHFLOW 2013 2014E 2015E 2016E 2017E

Operating revenue 17 356 000 17 356 000 17 356 000 17 403 000 17 356 000Operating expenses -267 000 -267 000 -270 000 -272 000 -275 000Net operating cashfl ow 17 089 000 17 089 000 17 086 000 17 131 000 17 081 000 Interest earned 3 000 - - 70 000 70 000Interest expenses -6 263 000 -5 793 000 -5 182 000 -4 537 000 -3 854 000Drawdown/ Repayment long term debt -7 200 000 -7 263 000 -7 700 000 -7 950 000 -7 950 000Net fi nancial items -13 460 000 -13 056 000 -12 882 000 -12 417 000 -11 734 000Net project cashfl ow 3 629 000 4 033 000 4 204 000 4 714 000 5 347 000Estimated dividend 3 700 000 4 150 000 4 250 000 4 750 000 5 400 000


Cash 1 870 000Implicit vessel value 103 330 000Total assets 105 200 000Outstanding debt 65 400 000Short term payables 800 000Sellers credit 6 000 000Total outstanding debt 72 200 000Estimated project value 33 000 000

Mortgage: USD 96 000 000 Sellers credit: USD 6 000 000 Balloon: USD 20 250 000 Term: 10 yearsQuarterly instalments: 1-20: USD 1 800 000 21-40: USD 1 987 500 Interest mortgage: Average of 8.3213% including 3.625% marginInterest sellers credit: 3.50%

FINANCING COMMENTS

The Charterer has purchase options from after year 5 to year 10.Latest valuation of the vessels was USD 33-34 million meaning that we are within the minimum value clause.

Established: May 2008Paid in capital: USD 29 269 250Uncalled capital: USD 0Accumulated dividends: USD 21 250 000

Estimated share value per 1%: USD 330 000Last reported sale per 1%: May 2014 330 000 Estimated IRR Buyer: 16%Estimated IRR Seller: 13%

Latent tax liability vessel pr 1%: USD 120 200Latent tax liability debt pr. 1%: USD 6 000

CIT-GRIEG KEY FIGURES (date of analysis: 30.06.2014) Project Broker: Chris W. Svensson, Corporate Manager: Benjamin Ryeng Hansen

THE VESSELS

Vessels name: Star LygraType: Open Hatch Bulk CarrierDWT: 50 700Yard: Hyundai Mipo Dockyards, South KoreaDelivery: December 2013Class: ABSFlag: Cyprus

COMMERCIAL DETAILS

Corporate management: RS Platou Project Finance ASBareboat charterer: Grieg Shipping II AS


CASHFLOW 2013 2014E


FINANCING COMMENTS

Established: May 2014Paid in capital: USD 49 000 000Uncalled capital: USD 0Accumulated dividends: USD 0


DONGGUAN CHEMICAL TANKERS DIS KEY FIGURES (date of analysis: 30.06.2014) Project Broker: Axel M. Aas, Corporate Manager: Benjamin Ryeng-Hansen

THE VESSELS

Vessel name: Toreach PioneerType: Chemical Tanker IMO IIDWT: 8 200Speed: 12 knotsYard: Zhejiang Haifeng Shipbuilding Co. Ltd, ChinaBuilt: 2008Class: CCSFlag: Marshall Islands

COMMERCIAL DETAILS

Corporate management: RS Platou Project Finance ASDisponent owner: Atlantica Shipping ASProject price: USD 15 324 000Paid in capital: USD 7 150 000Uncalled capital: USD 3 500 000BB rate: USD 5 250 pd

Bareboat charter: 8 yearsBareboat charterer: Toreach Marine Pte Ltd guaranteed by Dongguan Fenghai Ocean Shipping Co LtdCommencement of CP: 15.10.2008Expiry of CP: 15.10.2016


Residual value end CP: 6 500 000 Estimated IRR: 16%

CASHFLOW 2013 2014E 2015E 2016E

Operating revenue 1 916 000 1 916 000 1 916 000 1 433 000Operating expenses -89 000 -98 000 -100 000 -101 000Net operating cashfl ow 1 827 000 1 818 000 1 816 000 1 332 000 Interest earned - 1 000 1 000 1 000Interest expenses -260 000 -223 000 -185 000 -136 000Drawdown/ Repayment long term debt -720 000 -945 000 -720 000 -3 660 000Net fi nancial items -980 000 -1 167 000 -904 000 -3 795 000Sale of vessel - - - 6 500 000Net project cashfl ow 847 000 651 000 912 000 4 037 000Estimated dividend 400 000 1 150 000 925 000 4 384 000


Cash 384 000Implicit vessel value 8 681 000Total assets 9 065 000Outstanding debt 3 940 000Short term payables 75 000Sellers credit 800 000Total outstanding debt 4 815 000Estimated project value 4 250 000

Mortgage: USD 9 000 000 Sellers credit: USD 800 000 Balloon: USD 3 240 000 Term: 8 yearsQuarterly instalments: USD 180 000 Interest mortgage 20.11.2008-04.05.2012: 6.54% including 1.5% marginInterest mortgage 04.05.2012-04.11.2015: 5.16% including 1.5% marginInterest sellers credit: 0.00%

FINANCING COMMENTS

The Charterer has purchase options from after year 3 to year 8.Put option at the end of the charter party.The Charterer is paying charter hire in a timely manner. The base case scenario is based on the put option.

Established: December 2007Paid in capital: USD 7 150 000Uncalled capital: USD 3 500 000Accumulated dividends: USD 4 225 000

Estimated share value per 1%: USD 42 500Last reported sale per 1%: May 2013 USD 42 000 Estimated IRR Buyer: 16%Estimated IRR Seller: 3%

Latent tax liability vessel pr 1%: USD 7 000Latent tax liability debt pr. 1%: USD 900

EUROPEAN VENTURE DIS KEY FIGURES (date of analysis: 30.06.2014) Project Broker: Chris W. Svensson, Corporate Manager: Erik Kristian Andresen

THE VESSELS

Vessels name: GSP Queen GSP KingType: PSV, 2 x 3978 BHP, FIFI1, DP2 PSV, 2 x 5440 BHP, FIFI1, DP2DWT: 1 800 2 000Speed: 14 knots 14 knotsYard: Jaya Yard, Singapore Jaya Yard, SingaporeBuilt: 2006 2005Class: ABS ABSFlag: Gibraltar Gibraltar

COMMERCIAL DETAILS

Corporate management: RS Platou Project Finance ASDisponent owner: North Sea Shipping ASProject price: USD 46 325 000Paid in capital: USD 9 965 000

Uncalled capital: USD 5 000 000Commencement of CP: June 2006Expiry of CP: June 2015

GSP Queen GSP King

BB rate per day: Year 1-5 USD 8 715 Year 1-5 USD 9 330 Year 6-8 USD 7 000 Year 6-8 USD 8 000Bareboat charter: 8 years 8 yearsBareboat charterer: Grup Servicii Grup Servicii Petroliere S.A. Petroliere S.A RESIDUAL VALUE SENSITIVITY ON IRR LOW BASE HIGH

Residual value end CP: USD 26 000 000 Estimated IRR: 17.5% CASHFLOW 2014E 2015E

Operating revenue 5 587 000 2 296 000Operating expenses -183 000 -235 000Net operating cashfl ow 5 404 000 2 061 000 Interest earned 0 0Interest expenses -287 000 -122 000Drawdown/ Repayment long term debt -2 860 000 -12 050 000Net fi nancial items -3 147 000 -12 172 000Purchase / sale of vessel 0 26 000 000Net Projected Cashfl ow 2 257 000 15 889 000Estimated dividend 2 000 000 18 661 000 BALANCE 01.07.2014 Cash balance 4 862 000impicit vessel value 25 638 000Total assets 30 500 000Outstanding debt 13 480 000Shor term payables 20 000Sellers credit 0Total outstanding debt 13 500 000Estimated project value 17 000 000

Mortgage: USD 36 360 000Balloon: USD 13 480 000Term: 8 yearsSemi-annually instalments: USD 1-16: 1 430 000IInterest: 100% fl oating

FINANCING COMMENTS

The project is currently beeing restructured. The charter will be lengthened with an additional year. The data has not been updated to refl ect the restructuring.

Established: April 2006Paid in capital USD 9 965 000Uncalled capital: USD 5 000 000Accumulated dividends: USD 8 090 000

Estimated share value per 1 %: USD 188 000Last reported sale pr 1 %: USD 115 000Estimated IRR Buyer : 17.5%Estimated IRR Seller : 16.9%



EUROPEAN VENTURE III DIS KEY FIGURES (date of analysis: 30.06.2014) Project Broker: Chris W. Svensson, Corporate Manager: Erik Kristian Andersen

THE VESSELS

Vessels name: GSP VegaType: AHTSBollard pull: 120 tonSpeed: 14.5 knotsYard: Bolsoenes, Molde, SingaporeBuilt: 1983Class: DNVFlag: NIS

COMMERCIAL DETAILS

Corporate management: RS Platou Project Finance ASDisponent owner: Scantank ASProject price: USD 17 750 000Paid in capital: USD 5 720 000Uncalled capital: USD 5 000 000Commencement of CP: August 2008Expiry of CP: August 2012

BB rate per day: August 2008 - August 2010 USD 15 100 August 2010 - August 2011 USD 11 500 August 2011 - February 2012 USD 10 000 February 2012 - August 2013 USD 7 000Bareboat charter: 5 yearsBareboat charterer: Grup Servicii Petroliere S.A.

RESIDUAL VALUE SENSITIVITY ON IRR BASE CASE

Residual value end CP: USD 6 000 000 Estimated IRR: 23%

CASHFLOW 2014E

Operating revenue 473 000Operating expenses -108 000Net operating cashfl ow 365 000 Interest earned 0Interest expenses 0Drawdown/ Repayment long term debt 0Net fi nancial items 0Purchase / sale of vessel 6 000 000Net Projected Cashfl ow 6 365 000Estimated dividend 5 672 000

BALANCE 01.07.2014

Cash balance 401 000Impicit vessel value 2 699 000Total assets 3 100 000Outstanding debt 0Short term payables 0Sellers creditt 0Total outstanding debt 0Estimated project value 3 100 000

Mortgage: USD 12 000 000Balloon: USD 2 250 000Term: 5 yearsQuarterly instalments: USD 1-4 825 000 USD 5-8 787 500 USD 9-12 325 000 USD 13-20 250 000Interest: 4.28% Fixed to 12.08.2013

FINANCING COMMENTS

In April 2012 the project was renegotiated with the charterer and it was agreed to reduce the bareboat rate from USD 10.000 pr. day to USD 7.000. It was also agreed to prolonge the bareboat charter period with two years untill the 31st of August 2014. It was also agreed to reduce the purchase obligation from USD 6,550,000 to USD 6,000,000.

Established: July 2008Paid in equity: USD 214 000Uncalled capital: USD 0Accumulated dividends: USD 9 350 000

Estimated share value per 1%: USD 31 000Last reported sale pr 1%: Nov. 2011 USD 53 000Estimated IRR Buyer: 30%Estimated IRR Seller: 23%


FEEDER CONTAINER VESSEL DIS KEY FIGURES (date of analysis: 30.06.2014) Project Broker: Axel M. Aas, Corporate Manager: Eva Lise Bjerke

THE VESSELS

Vessels name: MV CredoType: Container feeder vesselDWT: 22 900Yard: Stocznia Szczecinska, PolandBuilt: March 1996Class: GL, Germany SS/DD 02/14Flag: Marshall Islands

COMMERCIAL DETAILS

Corporate management: RS Platou Project Finance ASDisponent owner: Atlantica Shipping ASProject price: USD 4 300 000Paid in capital: USD 4 300 000Uncalled capital: USD 0Commencement of Time Charter Party: 20 April 2014

Expiry of TCP: Round voyage South America of 70-85 days + charterer´s option for 1 further round voyageTC rate per day year: USD 7 200 less 3.75%Charterer: CCNI


Residual value end CP: 3 200 000 6 000 000 10 000 000 Estimated IRR: 2% 30% 62%

CASHFLOW 2013 2014E 2015E 2016E

Operating revenue 1 348 000 2 542 000 3 226 000 1 216 000Operating expenses -2 043 000 -2 650 000 -2 394 000 -790 000Net operating cashfl ow -695 000 -108 000 832 000 426 000 Purchase of vessel -3 450 000 Sale of vessel 0 0 6 000 000Interest earned 0 0 0 0Interest expenses 0 0 0 0Paid in capital 4 300 000 0 0 0Drawdown/ Repayment long term debt 0 0 0 0Net fi nancial items 4 300 000 0 0 0Net projected cash fl ow 155 000 -108 000 832 000 6 426 000Estimated dividend 0 0 -500 000 -7 300 000


Cash 40 000Impicit vessel value 4 745 000Total assets 4 785 000Outstanding debt 0Short term payables 485 000Sellers credit 0Total outstanding debt 485 000Estimated project value 4 300 000

Mortgage fi nance: None

FINANCING COMMENTS

The company was incorporated on 8 May 2013 with the purpose of purchasing and operating MV “Credo”, a 17 year old feeder container vessel . The vessel was aquired on 10 May 2013. The vessel has since time of delivery been fi xed on time charter parties to various charterers.The vessel is expected to be redelivered in September 2014.

Established: May 2013Paid in equity: USD 4 300 000Uncalled capital: USD 0Accumulated dividends: USD 0

Estimated share value per 1%: USD 43 000Last reported sale pr 1%: Estimated IRR Buyer: N/AEstimated IRR Seller: 0%

Latent tax benefi t vessel pr 1%: -USD 4 800Latent tax benefi t debt pr. 1%: USD 0


GOLDEN KAMSAR DIS KEY FIGURES (date of analysis: 30.06.2014) Project Broker: Chris W. Svensson, Corporate Manager: Eva Lise Bjerke

THE VESSELS

Vessel name: Golden EclipseType: Kamsarmax bulk carrierDWT: 79 600Yard: Jinhaiwan Shipyard, PRCDelivery: April 2010Class: ABSFlag: Hong Kong

COMMERCIAL DETAILS

Corporate management: RS Platou Project Finance ASDisponent owner: Scantank ASProject price: USD 57 500 000Paid in capital: USD 17 294 000Uncalled capital: USD 12 500 000Commencement of CP: April 2010

Expiry of CP: April 2020BB rate per day year USD Year 1-5 21,975 Year 5-10 16,284Bareboat charter: 10 yearBareboat charterer: Golden Eclipse Inc.



CASHFLOW 2013 2014E 2015E 2016E

Operating revenue 8 020 875 8 020 875 6 558 000 5 960 000Operating expenses -83 000 -117 000 -119 000 -119 000Net operating cashfl ow 7 937 875 7 903 875 6 439 000 5 841 000 Purchase of vessel Interest earned 7 000 5 000 3 000 2 000Interest expenses -1 668 000 -1 710 000 -500 000 -460 000Paid in capital 0 0 0 0Drawdown/ Repayment long term debt -8 000 000 -3 000 000 -3 000 000 -2 500 000Net fi nancial items -9 661 000 -4 705 000 -3 497 000 -2 958 000Net projected cash fl ow -1 723 125 3 198 875 2 942 000 2 883 000Estimated dividend 0 -4 500 000 -3 500 000 -1 900 000

BALANCE 01.07.2014

Cash 3 050 000Impicit vessel value 34 150 000Total assets 37 200 000Outstanding debt 15 000 000Short term payables 300 000Sellers credit 0Total outstanding debt 15 300 000Estimated project value 21 900 000

Mortgage: USD 36 000 000 Balloon: USD 21 500 000 Term: 4.5 years and fi nal maturity date 31/12/2014Quarterly instalments: USD year 1-2: 875,000 year 3-5: 750,000

Interest: The interest rate is fi xed for the entire term of the loan (incl. margin) 6.55%The interest swap agreement expires on 31/12/2014.The cashfl ow assumes a refi nancing of the loan with same repayment profi le and maturity date in April 2020and interest terms LIBOR + a margin of 3.0%.

FINANCING COMMENTS

As a result of a major drop in ship values, we have negotiated the purchase price down from USD 65,340,000 to USD 57,500,000 with the seller. The charterer has purchase options from year 3 and onwards.USD 6,400,000 has been called upon from the partners.

Established: April 2008Paid in capital: USD 23 694 000Uncalled capital: USD 11 300 000Accumulated dividends: USD 2 500 000

Estimated share value per 1% USD 218 000Last reported sale pr 1% November 2013 USD 178 500Estimated IRR Buyer: 15%Estimated IRR Seller: 1%

Latent tax benefi t vessel pr 1%: - USD 8 400Latent tax benefi t debt pr. 1%: - USD 1 300

HIGH YIELD SHIPPING DIS KEY FIGURES (date of analysis: 30.06.2014) Project Broker: Axel M. Aas, Corporate Manager: Benjamin Ryeng-Hansen

THE VESSELS

Vessel name: MSC PositanoType: TEU container vesselDWT: 27 290Speed: 12 knotsYard: Daewoo Shipbuilding & Machinery Co. Ltd.Built: 1997Class: GLFlag: Malta

COMMERCIAL DETAILS

Corporate management: RS Platou Project Finance ASDisponent owner: Seabulk ASProject price: USD 6 000 000Paid in capital: USD 6 000 000Uncalled capital: USD 0

BB rate: USD 2 000 pdBareboat charter: 5 yearsBareboat charterer: MSC Mediterranean Shipping Company S.A. Geneva, SwitzerlandCommencement of CP: 16.04.2014Expiry of CP: 16.04.2019



CASHFLOW 2014E 2015E 2016E 2017E 2018E

Operating revenue 520 000 730 000 732 000 730 000 730 000Operating expenses -310 000 -61 000 -62 000 -64 000 -65 000Net operating cashfl ow 210 000 669 000 670 000 666 000 665 000 Purchase of vessel -5 750 000 - - - -Net project cashfl ow -5 540 000 669 000 670 000 666 000 665 000Estimated dividend 285 000 570 000 570 000 570 000 570 000


Cash 122 000Implicit vessel value 5 898 000Total assets 6 020 000Outstanding debt - Short term payables 20 000 Sellers credit - Total outstanding debt 20 000,00 Estimated project value 6 000 000

100% equity.

FINANCING COMMENTS

Financial lease.Charterer has a purchase obligation at the end of the charter period to USD 5,550,000.

Established: April 2014Paid in capital: USD 6 000 000Uncalled capital: USD -Accumulated dividends: USD -

Estimated share value per 1%: USD 60 000Last reported sale pr 1%: N/AEstimated IRR Buyer: 10%Estimated IRR Seller: 0%



INDUSTRIAL SHIPPING DIS KEY FIGURES (date of analysis: 30.06.2014) Project Broker: Axel M. Aas, Corporate Manager: Erik Kristian Andresen

THE VESSELS

Vessel names: Trans Forza / Trans Volante Trans Sonoro / Trans Lontano / Trans Distinto Trans Brilliante Trans RisolutoType: MPP Single-decker MPP Single-decker MPP Single-decker MPP Single-deckerDWT: 4 117 4 110 / 4 135 / 4 160 5 557 4 145Speed: 13 knots 13 knots 13.5 knots 11 knotsYard: Severnav S.A, Romania Severnav S.A, Romania Ferus Smith B.V Netherland Bodewes Volharding B.V NetherlandBuilt: 2000 2000 1997 1997Class: GL GL GL GLFlag: Gibraltar Gibraltar Gibraltar Gibraltar

COMMERCIAL DETAILS

Corporate management: RS Platou Project Finance ASDisponent owner: RS Platou Asset Management ASProject price: EUR 25 950 000Paid in capital : EUR 5 750 000Uncalled capital: EUR 0

BB rate (fi xed not including profi t split): EUR 1 175 Bareboat charter: 12 + 2 yearsBareboat charterer (guaranteed by): TransAtlantic Short Sea Bulk ABCommencement of CP: 2012Expiry of CP: 2024



CASHFLOW 2014E 2015E 2016E

Operating revenue 0 0 0Operating expenses 0 0 0Net operating cashfl ow 0 0 0 Interest earned 0 0 0Interest expenses 0 0 0Drawdown/ Repayment long term debt 0 0 0Net fi nancial items 0 0 0Purchase/sale of vessel 0 0 0Net project cashfl ow 0 0 0Estimated dividend 0 0 0

PROJECT BALANCE (ESTIMATE) 01.07.2014

Cash 319 000Implicit vessel value 16 906 000Total assets 17 225 000Outstanding debt 17 225 000Short term payables 0Sellers credit - Total outstanding debt 17 225 000Estimated project value 0

1st. 2nd.Mortgage: EUR 17 700 000 2 000 000Balloon: EUR 11 000 000 - Term: 5 years 12 yearsQuarterly instalments: EUR 1 - 12: EUR 325 000 1-20: EUR 0 13 - 20: EUR 350 000 21-36: EUR 50 000 37-48: EUR 100 000Interest mortgage: 6,50 % 7,00 %

FINANCING COMMENTS

The project is currently being restructured.

Established: May 2012Paid in capital: EUR 5 394 485Uncalled capital: EUR -Accumulated dividends: EUR 355 515

Estimated share value per 1 %: EUR - Last reported sale per 1%: N/AEstimated IRR Buyer: N/AEstimated IRR Seller: N/A


MARINELINE CHEMICAL DIS KEY FIGURES (date of analysis: 30.06.2014) Project Broker: Chris W. Svensson, Corporate Manager: Erik Kristian Andresen

THE VESSELS

Vessels name: SOLD Royal Emerald SOLD Royal Crystal 7 SOLD Royal AquaType: Chemical Tankers IMO II Chemical Tankers IMO II Chemical Tankers IMO IIDwt 13100 Dwt 13100 Dwt 13100 DwtSpeed: 14 knots 14 knots 14 knotsYard: South Korea South Korea South KoreaBuilt: 2006 2007 2008Class: ABS ABS ABSFlag: Panama Panama Panama

COMMERCIAL DETAILS

Corporate management: RS Platou Project Finance ASDisponent owner: Scantank ASProject price: USD 79 850 000

Paid in capital: USD 18 710 000Uncalled capital: USD 0

Royal Emerald Royal Crystal 7 Royal Aqua

Commencement of CP: March 2008 March 2008 August 2008Expiry of CP: March 2014 March 2014 August 2014BB rate per day year USD 6 500 6 250 6 500Bareboat charter: 6 Years 6 Years 6 yearsBareboat charterer: Hanjin Shipping Hanjin Shipping Hanjin Shipping RESIDUAL VALUE SENSITIVITY ON IRR LOW BASE HIGH

Enbloc residual value end CP: Estimated IRR: CASHFLOW 2014E

Operating revenue 0Operating expenses 0Net operating cashfl ow 0 Interest earned 0Interest expenses 0Drawdown/ Repayment long term debt 0Net fi nancial items 0Purchase / sale of vessel 0Net Projected Cashfl ow 0Estimated dividend 0


Cash balance 0Implicit vessel value 0Total assets 0Outstanding debt 0Short term payables 0Sellers credit 0Total outstanding debt 0Estimated project value 0

FINANCING COMMENTS

The vessels have been sold.

Established: February 2008Paid in capital: USD 18 710 000Uncalled capital: USD 0Accumulated dividends: USD 0

Estimated share value per 1%: USD 0Last reported sale pr 1%: N/AEstimated IRR Buyer: 0%Estimated IRR Seller: 0%

Latent tax benefi t vessel pr 1%: USD 74 200Latent tax benefi t debt pr. 1%: USD 0


MED ETHYLENE DIS KEY FIGURES (date of analysis: 30.06.2014) Project Broker: Axel M. Aas, Corporate Manager: Eva Lise Bjerke

THE VESSELS

Vessels name: Syn Mizar Syn MiraType: Ethylene / LPG carrier Ethylene / LPG carrierDWT: 4 290 4 290Capacity (cbm): 3 982 3 982Yard: SOLD Fincantieri SOLD FincantieriBuilt: 1989 1990Class: BV and Rina (dual classed) BV and Rina (dual classed)Flag: Maltese Maltese

COMMERCIAL DETAILS

Corporate management: RS Platou Project Finance ASDisponent owner: Pan Oceanic Bulk Carriers UK Ltd.Project price: USD 27 875 000Paid in capital: USD 6 275 000

Syn Mizar Syn Mira

Commencement of CP: September 2007 July 2007Expiry of CP: September 2014 July 2014



CASHFLOW 2013 2014E

Operating revenue 3 090 000 3 316 000Operating expenses -198 000 -156 000Net operating cashfl ow 2 892 000 3 160 000 Sale of vessels 2 963 000 0Interest earned 0 0Interest expenses -525 000 0Drawdown/ Repayment long term debt -5 000 000 0Net fi nancial items -5 525 000 0Net projected cash fl o 330 000 3 160 000Estimated dividend -560 000 -3 500 000


Cash 554 000Implicit vessel value 9 195 000Total assets 9 749 000Outstanding debt 3 779 000Short term payables 70 000Sellers credit 0Total outstanding debt 3 849 000Estimated project value 5 900 000

Uncalled capital: USD 4 500 000BB rate per day for both vessels: USD 13 500Bareboat charter: 7 yearsBareboat charterer: Synergas SRL

Mortgage: USD 21 600 000Balloon: USD 4 500 000Term: 7Quarterly instalments (two tranches): USD 610,714Interest: 6,40 % Fixed The outstanding loan amount was fully prepaid in November 2013 when the vessels were sold.

FINANCING COMMENTS

Due to fi nancial diffi culties charterer failed to fulfi l his obligations under the charter parties as from July 2013. The parties came to an agreement where the charter parties were cancelled and the vessels were sold to a recycling yard in November 2013.In accordance with a sale and termination agreement charterer shall pay a monthly compensation to the company in 12 instalments from January 2014. After the fi nal instalment in December 2014 the company will be liquidated.

Established: May 2007Paid in capital: USD 6 275 000Uncalled capital: USD 0Accumulated dividends: USD 6 380 000

Estimated share value per 1%: USD 14 750 Last reported sale pr 1% ; october 2007 USD 67 000 Estimated IRR Buyer: 24%Estimated IRR Seller: 4%

Latent tax liability vessel pr 1% USD 0Latent tax liability debt pr 1% USD 0

MS NORDSTJERNEN DISKEY FIGURES (date of analysis: 01.07.2013) Project Broker: Axel M. Aas Corporate Manager: Erik Kristian Andresen

THE VESSELS

Vessel name: MS NordstjernenType: HurtigruteskipDWT: 570Speed: 17Yard: Blohm & Voss, GermanyBuilt: 1956

COMMERCIAL DETAILS

Corporate management: RS Platou Project Finance ASProject price: NOK 6 000 000Paid in capital: NOK 6 000 000Uncalled capital: NOK 0

BB rate MS Nordstjernen net per day: Year 1-5 kr 3 500 5 years 26. November 2012 / 26. November 2017Bareboat charter: Indre Nordhordaland Dampbåtlag AS, guaranteed by Vestland Marine Sp. z.o.o.

RESIDUAL VALUE SENSITIVITY ON IRR BASE

Residual value end CP: NOK 3 000 000 Estimated IRR for buyer: 10%

CASHFLOW 2014E 2015E 2016E 2017E

Operating revenue 1 277 500 1 281 000 1 277 500 945 000Operating expenses -187 000 -191 000 -195 000 -199 000Net operating cashfl ow 1 090 500 1 090 000 1 082 500 746 000 Interest earned 0 0 0 0Interest expenses 0 0 0 0Drawdown/ Repayment long term debt 0 0 0 0Purchase / Sale of vessel 0 0 0 0Net fi nancial items 0 0 0 0Net projected cashfl ow 1 090 500 1 090 000 1 082 500 746 000Estimated dividend 1 090 000 1 090 000 1 085 000 3 784 000


Cash 40 000Implicit vessel value 5 110 000Total assets 5 150 000Outstanding debt 0Short term payables 0Charteres credit 0Total outstanding debt 0Estimated Project value 5 150 000

FINANCING COMMENTS

The charterer has an purchase obligation at NOK 3,000,000 at the end of the charter party.

Established: November 2012Paid in capital: NOK 4 410 000Uncalled capital: NOK 0Accumulated dividends: NOK 1 915 000

Estimated share value per 1%: NOK 51 500Last reported sale per 1%: N/AEstimated IRR Buyer: 10%Estimated IRR Seller: 12%

Latent tax benefi t vessel pr 1%: NOK 0Latent tax benefi t debt pr. 1%: NOK 0


NORTHERN SUPPLY DIS KEY FIGURES (date of analysis: 30.06.2014) Project Broker: Chris W. Svensson, Corporate Manager: Eva Lise Bjerke

THE VESSELS

Vessels’ name: Hull 1048 and 1049 to be namedType: STX PSV 09 Clean Design Platform Supply VesselsDWT: 4 600Speed: 14,5 knotsYard: ASL Shipyard Pte. LtdBuilt: 2012–2014Class: DNVFlagg: N/A

COMMERCIAL DETAILS “DELIVERY CASE”

Corporate management: RS Platou Project Finance ASDisponent owner: Scantank ASProject price (resale case): USD 85 978 000

Paid in capital: USD 43 760 000Working capital / Stack up if delivered USD 2 600 000Uncalled capital: USD 7 680 000



CASHFLOW 2014E

Operating revenue N/AOperating expenses N/ANet operating cashfl ow N/A Interest earned N/AInterest expenses N/ADrawdown/ Repayment long term debt N/ANet fi nancial items N/A

Estimated dividend N/A

BALANCE (ASSUMED DELIVERY AFTER 1 JULY 2014) 01.07.2014

Cash balance 340 000Impicit vessel value 22 960 000Total assets 23 300 000Outstanding debt 0Short term payables 0Sellers creditt 1 500 000Total outstanding debt 1 500 000Estimated project value 21 800 000

Mortgage 1 Mortgage 2 Seller´s CreditLoan amount USD 25 600 000 USD 25 600 000 USD 3 000 000Repayment profi le 13.7 years 12 years 5 yearsQuarterly installments USD 64000 Q1-Q6 thereafter USD 534 000 USD 0 USD 640 000 Final maturity date 5 years 12 years 5 yearsBalloon payment USD 16 256 000 USD 0Interest terms LIBOR + a margin of 6% p.a. LIBOR + a margin of 3 % p.a 1% p.a. + guarantee premium of 3.5% p.a. .

FINANCING COMMENTS

This is an asset play project . If sale is not concluded before delivery, Northern Supply DIS will take delivery and operate the vessels in the spot marked until favourable offer has been received.

Established: July 2011Paid in capital: USD 21 800 000Uncalled capital : USD 19 280 000Accumulated dividends: 0

Estimated share value per 1 %: USD 218 000Last reported sale per 1 %: USD 173 000Estimated IRR Buyer : N/AEstimated IRR Seller : N/A


NORWEGIAN PRODUCT DIS KEY FIGURES (date of analysis: 30.06.2014) Project Broker: Chris W. Svensson Corporate Manager: Erik Kristian Andresen

THE VESSELS

Vessels name: Emily PG Lesley PGType: Product tanker, DH Product tanker, DHDWT: 6 249 6 249Yard: Kværner Govan Shipbuilders, UK Appledore Shipbuilders, UKBuilt / (Rebuilt): 1996 1998Flag: Isle of Man Isle of ManClass: Lloyds Register Lloyds Register

COMMERCIAL DETAILS

Corporate management: RS Platou Project Finance ASDisponent owner: Seabulk ASProject price: USD 32 865 000Paid in capital: USD 7 265 000Uncalled capital: USD 6 500 000Commencement of CP: December 06

Expiry of CP: December 14BB rate per day in total for all vessels (net): USD 13 100Bareboat charter: 8 yearsBareboat charterer: Giles W. Pritchard-Gordon Tankers Ltd.


Residual value end CP: 7 500 000 8 750 000 10 000 000Estimated IRR for buyer: -1% 30% 64% CASHFLOW 2014E

Operating revenue 4 375 000Operating expenses -162 000Net operating cashfl ow 4 213 000 Interest earned 0Interest expenses -408 000Drawdown/ Repayment long term debt -4 150 000Purchase / Sale of vessels 8 750 000Net fi nancial items 4 192 000Net Projected cashfl ow 8 405 000Estimated dividend 9 756 000


Cash 411 000Implicit vessel value 9 314 000Total assets 9 725 000Outstanding debt 1 125 000Short term payables 0Total outstanding debt 1 125 000Estimated Project value 8 600 000

Mortgage: USD 25 600 000Balloon: USD 7 600 000Sellers credit: USD 0Term: 8 yearsSemi-annual instalments: USD 1 - 16: 1 125 000Interest: 90% of the loan 6.05% Fixed for the entire fi xed charter period (incl. margin.) 10% of the loan Floating

FINANCING COMMENTS

As a result of lower ship values, we have had to call upon some of the uncalled capital in 2010.The project is otherwise running very well. The Charterer is fi nancially strong, and hire is being paid on time.

Established: November 2006Paid in capital: USD 10 115 000 Uncalled capital: USD 6 500 000 Accumulated dividends: USD 5 560 000

Estimated share value per 1%: USD 86 000Last reported sale per 1% November 2008: USD 73 000Estimated IRR Buyer: 30%Estimated IRR Seller: 5%

Latent tax liability vessel pr 1%: USD 2 000Latent tax liability debt pr. 1%: - USD 150


OCTAVIAN BULKER DIS KEY FIGURES (date of analysis: 30.06.2014) Project Broker: Chris W. Svensson, Corporate Manager: Benjamin Ryeng-Hansen

THE VESSELS

Vessels name: MV SkomvaerType: Supramax Bulk CarrierDWT: 58 000Yard: Dayang, ChinaDelivered: September 2010Class: BV1Flag: Marshall Island

COMMERCIAL DETAILS

Corporate management: RS Platou Project Finance ASDisponent owner: Scantank ASProject price: USD 36 000 000Paid in capital: USD 16 000 000Uncalled capital: USD 0

Commencement of CP: September 2010Expiry of CP: September 2015TC rate per day year : USD 15 500 TC charter: Hanjin Shipping Co. Ltd.


Residual value end CP: USD 20 000 000 Estimated IRR: 16% CASHFLOW 2013 2014E 2015E

Operating revenue 5 603 000 5 601 000 4 207 000Operating expenses -2 166 000 -2 100 000 -1 604 000Administration expenses -178 000 -182 000 -184 000Extraordinary costs 0 0 0Net operating cashfl ow 3 259 000 3 319 000 2 419 000 Interest earned 20 000 0 0Interest expenses -638 000 -539 000 -397 000Paid in capital 0 0 0Purchase of vessel / Sale of vessel 0 0 20 000 000Drawdown/ Repayment long term debt -1 800 000 -1 800 000 -14 350 000Net fi nancial items -2 418 000 -2 339 000 5 253 000Net Projected Cashfl ow 841 000 980 000 7 672 000Estimated dividend - 1 000 000 11 093 000


Cash 1 364 000Implicit vessel value 23 061 000Total assets 24 425 000Outstanding debt 15 250 000 Short term payables 150 000 Sellers credit - Total outstanding debt 15 400 000 Estimated project value 9 025 000

FINANCING COMMENTS

Mortgage: USD 22 000 000Balloon: USD 13 000 000Term: 5 yearsQuarterly instalments USD 450 000 Interest: 70% of the loan fi xed for 3 years 3.97% 30 % of the loan fl oating presently 3,28 % Margin 3,00 %

The vessel is fi xed on a 5 year TC to Hanjin Shipping in Korea. Throughout the time charter period, the vessel is fi xed on a fl oor rate of USD 15,500 per day and a ceiling rate of USD 18,500 per day. The daily running costs amounted to USD 4,700 per day in 2011 which is according to budget.After completion of year 3 of the TC, the owner has the option to sell the vessel at any time and any circumstances and thereby cancel the TC.

Established: September 2010Paid in capital: USD 16 000 000Uncalled capital: USD 0Accumulated dividends: USD 1 500 000

Estimated share value per 1%: USD 90 250 Last reported sale per 1%: N/AEstimated IRR Buyer: 16%Estimated IRR Seller: -7%

Latent tax benefi t vessel pr 1%: USD 8 800Latent tax benefi t debt pr 1%: USD 1 300

ORCHARD OFFSHORE DIS KEY FIGURES (date of analysis: 30.06.2014) Project Broker: Chris W. Svensson, Corporate Manager: Benjamin Ryeng-Hansen

THE VESSELS

Vessel name: Swiber Navigator Swiber Explorer SOLD Swiber Ada SOLD Swiber TorunnType: AHT AHT AHTS AHTSBHP: 4 000 4 000 5 000 5 000Speed: 13.5 knots 13.5 knots 13.5 knots 13.5 knotsYard: Malaysia / China Malaysia / China Malaysia / China Malaysia / ChinaBuilt: 2008 2008 2008 2008Class: ABS ABS BV BVFlag: Singapore Singapore Singapore Singapore

COMMERCIAL DETAILS


Paid in capital: USD 7 800 000Uncalled capital: USD 2 125 000


Residual value end CP: USD 8 500 000 10 000 000 Estimated IRR: 16% 95% CASHFLOW 2013 2014E 2015E 2016E

Operating revenue 5 913 000 4 091 000 2 300 000 98 000Operating expenses -225 000 -227 000 -229 000 -116 000Net operating cashfl ow 5 688 000 3 864 000 2 071 000 -18 000 Interest earned 1 000 - 30 000 -Interest expenses -1 454 000 -888 000 -531 000 -36 000Drawdown/ Repayment long term debt -2 268 000 -14 740 000 -4 070 000 -5 410 000Net fi nancial items -3 721 000 -15 628 000 -4 571 000 -5 446 000Sale of vessel - 20 000 000 4 250 000 4 250 000Net project cashfl ow 1 967 000 8 236 000 1 750 000 -1 214 000Estimated dividend 2 050 000 8 650 000 350 000 606 000


Cash 475 000Implicit vessel value 10 842 500Total assets 11 317 500Outstanding debt 7 920 000Short term payables 250 000Sellers credit 2 000 000Total outstanding debt 10 170 000Estimated project value 1 147 500

Swiber Navigator Swiber Explorer Swiber Ada Swiber Torunn

BB rate: USD 3 150 pd USD 3 150 pd USD 4 950 pd USD 4 950 pdBareboat charter: 8 years 8 years 8 years 8 yearsBareboat charterer: Swiber Offshore Marine Pte Ltd guaranteed by Swiber Holdings LtdCommencement of CP: January 2008 February 2008 October 2008 December 2008Expiry of CP: January 2016 February 2016 October 2016 December 2016

FINANCING COMMENTS

Mortgage: USD 34 000 000 Sellers Credit: USD 2 000 000 Balloon: USD 15 856 000 Term: 8 yearsSemi-annually instalments USD 1 134 000 Interest mortgage: Average of 5.7424% including 1.00% marginInterest sellers credit: 3.50%

The Charterer has purchase options from after year 5 to year 10 for Swiber Navigator and Swiber Explorer.The Charterer will purchase Swiber Ada and Swiber Torunn end of June 2014.

Established: March 2007Paid in capital: USD 7 800 000Uncalled capital: USD 2 125 000Accumulated dividends: USD 18 150 000

Estimated share value per 1%: USD 11 475Last reported sale per 1%: N/AEstimated IRR Buyer: 16%Estimated IRR Seller: 18%

Latent tax liability vessel pr 1%: USD 17 100Latent tax liability debt pr. 1%: USD 800


PANDA CHEMICAL II DIS KEY FIGURES (date of analysis: 30.06.2014) Project Broker: Chris W. Svensson, Corporate Manager: Eva Lise Bjerke

THE VESSELS

Vessel name: Panda PGType: Oil / Chemical TankerDWT: 6 725Capacity (cbm): 7 436Yard: Sedef Shipyard / IstanbulBuilt: 2004Class: Bueau VeritasFlag: Isle of Man

COMMERCIAL DETAILS

Corporate management: RS Platou Project Finance ASDisponent owner: Partrederiet Eliza PG Project price: USD 4 315 000Paid in capital: USD 1 815 000Guaranteed amount by the partners in the silent partnership in favor of the lender: USD 2 000 000BB rate: USD per day: 1 500

Bareboat charterer: Giles W. Pritchard-Gordon Tankers LtdCommencement of CP: November 2013Expiry of CP: November 2015


Residual value end CP: USD 3 500 000 4 250 000 7 000 000Estimated IRR for buyer including 80/20 profi t split: -10 % 17 % 83 %

CASHFLOW 2013 2014E 2015E

Operating revenue 48 000 547 500 277 000Operating expenses -228 000 -200 500 -100 000Net operating cashfl ow -180 000 347 000 177 000 Interest earned 0 0 0Interest expenses 0 -147 000 -147 000Paid in capital 1 815 000 0 0Drawdown/ Repayment long term debt 2 500 000 -250 000 -2 250 000Purchase / Sale of vessel -4 000 000 0 4 250 000Net fi nancial items 315 000 -397 000 1 853 000Net project cash fl ow 135 000 -50 000 -1 676 000Estimated dividend 0 -30 000 -2 300 000

BALANCE 01.07.2014

Cash 50 000Impicit vessel value 4 255 000Total assets 4 305 000Outstanding debt 2 375 000Short term payables 15 000Sellers credit 0Total outstanding debt 2 390 000Estimated project value 1 815 000

FINANCING COMMENTS

Mortgage: USD 2 500 000 Sellers Credit: USD 0 Term: 2 years Quarterly instalments: USD 62 500 Ballon payment USD 2 000 000 Interest: LIBOR + a margin of 5.75%

The company was incorporated on 21 November 2013 with the purpose of purchasing and operating “Panda PG” a 10 year old Oil/Chemical Tanker. The vessel was aquired on 29 November 2013 and delivered to charterer on 30 November 2013.The vessel is trading between the islands in the Bermuda area with refi ned products.The vessel is well kept and in good condition.

Established: July 2006Paid in capital: USD 1 815 000Guaranteed amount by the investors: USD 2 000 000Accumulated dividends: USD 1 565 000

Estimated share value per 1%: USD 18 150Last reported sale per 1%: Estimated IRR Buyer: N/AEstimated IRR Seller: 0%

Latent tax liability vessel pr 1%: USD 0Latent tax liability debt pr 1%: USD 2 000

RTS PANAMAX DIS KEY FIGURES (date of analysis: 30.06.2014) Project Broker: Chris W. Svensson, Corporate Manager: Erik Kristian Andresen

THE VESSELS

Vessels name: Endeavour ( ex. RTS Pioneer)Type: Panamax bulk carrierDWT: 71 319Speed: 14 knotsYard: Namura ZosenshoBuilt: 1996Class: LRFlag: UK

COMMERCIAL DETAILS

Corporate management: RS Platou Project Finance ASDisponent owner: Atlantica Shipping ASProject price: USD 24 650 000Paid in capital: USD 4 650 000Uncalled capital: USD 0

Commencement of CP: jan.06Expiry of CP: jan.13BB rate per day: Year 1: USD 15 100 Year 2-6: USD 7 700Bareboat charter: 6 yearsBareboat charterer: Rio Tinto Shipping Ltd.



CASHFLOW 2014E

Operating revenue 3 490 000Operating expenses -3 211 000Net operating cashfl ow 279 000 Interest earned 0Interest expenses -585 000Drawdown/ Repayment long term debt 0Purchase / Sale of vessel 0Net fi nancial items -585 000Net project cash fl ow -306 000Estimated dividend 0


Cash 336 000Implicit vessel value 11 685 000Total assets 12 021 000Outstanding debt 11 600 000Short term payables 421 000Total outstanding debt 12 021 000Estimated Project value 0

FINANCING COMMENTS

Mortgage: USD 20 000 000Sellers Credit: USD 0Balloon: USD 11 000 000Term: 6 yearsSemi-annually instalments USD 1 - 4: 750 000 5 - 24: 300 000Interest: 6.535%Comment: 75% of the loan is fi xed at 6.535% including margin

The bareboat charterer, Rio Tinto Shipping redelivered the vessel one year prior to end of the charter party. The vessel is currently fi xed on a 1 year TC until December 2014.

Established: April 2007Paid in capital: USD 4 650 000Uncalled capital: USD 0Accumulated dividends: USD 3 050 000

Estimated share value per 1%: USD 0Last reported sale per 1% may 2009: USD 40 000Estimated IRR Buyer: N/AEstimated IRR Seller: -15%

Latent tax liability vessel pr 1%: -USD 9 900Latent tax liability debt pr. 1%: -USD 700


THE VESSELS

Vessels name: MV LuengoType: LR Product TankerDWT: 73 626Speed: Yard: New Century Shipbuilding Co in ChinaBuilt: 2007Class: ABSFlag: The republic of Liberia

COMMERCIAL DETAILS

Corporate management: RS Platou Project Finance ASProject price: USD 47 000 000Paid in capital: USD 17 737 500Uncalled capital: USD 0Commencement of CP: July 2010Expiry of CP: July 2015

BB rate per day: First year USD 16.500 less 2,50% Jul 2011 - Nov 2011 USD 16.000 less 2,50% Thereafter USD 22.000 less 2,50%Bareboat charter: 5 yearsBareboat charterer: Sonangol Shipping Angola (Luanda) LTDA




Operating revenue 7 829 000 7 829 000 3 882 000Operating expenses -80 000 -70 000 -72 000Net operating cashfl ow 7 749 000 7 759 000 3 810 000

Interest earned 0 0 0Interest expenses -1 088 000 -805 000 -588 000Drawdown/ Repayment long term debt -3 500 000 -3 500 000 -15 625 000Net fi nancial items -4 588 000 -4 305 000 -16 213 000Paid in capital by the investors 0 0 0Purchase / sale of vessel 0 0 25 000 000Net Projected Cashfl ow 3 161 000 3 454 000 12 597 000Estimated dividend -1 638 000 -6 300 000 -16 000 000


Cash balance 3 045 000Impicit vessel value 14 510 000Total assets 17 555 000Outstanding debt 17 375 000Short term payables 180 000Sellers creditt 0Total outstanding debt 17 555 000Estimated project value 0

FINANCING COMMENTS

Mortgage: USD 30 500 000Balloon: USD 13 000 000Term: 5 yearsSemi-annually instalments: USD 1-20: 875 000Interest: 100% of the loan 4,61% Fixed for the entire bareboat period (incl. margin).

The project is running as planned.

SARAGOL TANKERS 1 DIS KEY FIGURES (date of analysis: 30.06.2014) Project Broker: Chris W. Svensson, Coporate Manager: Eva Lise Bjerke

Established: July 2010Paid in capital USD 17 737 500Uncalled capital: USD 0Accumulated dividends: USD 7 602 300

Estimated share value per 1% Last reported sale pr 1% Estimated IRR Buyer: Estimated IRR Seller:

Latent tax benefi t vessel pr 1%: Latent tax benefi t debt pr. 1%:

THE VESSELS

Vessel name: MT MucuaType: Product & Crude Oil tankerDWT: 114 000Yard: New Times Shipbuilding Co. Ltd., ChinaDelivery: October 2008Class: ABSFlag: Cyprus

COMMERCIAL DETAILS

Corporate management: RS Platou Project Finance ASDisponent owner: N/AProject price: USD 54 312 500Paid in capital: USD 18 812 500Uncalled capital: USD 2 000 000Commencement of CP: December 2010

Expiry of CP: December 2015BB rate per day year USD Year 1: 17,800 Year 2-5: 17,500Bareboat charter: 5 yearBareboat charterer: Sonangol Shipping Angola (Luanda) Limitada




Operating revenue 8 541 000 8 541 000 7 815 600Operating expenses -61 000 -78 000 -80 000Net operating cashfl ow 8 480 000 8 463 000 7 735 600 Sale of vessel 36 900 000 Interest earned 0 0 0Interest expenses -911 000 -754 000 -638 000Paid in capital 0 0 0Drawdown/ Repayment long term debt -4 000 000 -4 000 000 -19 500 000Net fi nancial items -4 911 000 -4 754 000 -20 138 000Net projected cash fl ow 3 569 000 3 709 000 24 497 600Estimated dividend -2 373 000 -3 755 000 -27 500 000


Cash 4 496 000Impicit vessel value 26 196 000Total assets 30 692 000Outstanding debt 21 500 000Short term payables 200 000Sellers credit 0Total outstanding debt 21 700 000Estimated project value 0

FINANCING COMMENTS

Mortgage: USD 35 500 000 Balloon: USD 15 500 000 Term: 5 yearsQuarterly instalments: USD 1 000 000 Interest: Libor plus margin 3%

The project is running as planned.

SARAGOL TANKERS 2 DIS KEY FIGURES (date of analysis: 30.06.2014) Project Broker: Chris W. Svensson, Corporate Manager: Eva Lise Bjerke

Established: November 2010Paid in capital: USD 18 812 500Uncalled capital: USD 2 000 000Accumulated dividends: USD 5 920 000

Estimated share value per 1% Last reported sale pr 1% Estimated IRR Buyer: Estimated IRR Seller:

Latent tax benefi t vessel pr 1%: Latent tax benefi t debt pr. 1%:


SBS TORRENT KS KEY FIGURES (date of analysis: 30.06.2014) Project Broker: Chris W. Svensson, Corporate Manager: Erik Kristian Andresen

THE VESSELS

Vessel name: SBS TorrentType: PSV, 2 x 2030 Bkw, VS 470 MK IIDWT: 3 800Speed: 14.5 knotsYard: Vyvorg yard, RussiaBuilt: 2006Class: DNV - 1A1Flag: British

COMMERCIAL DETAILS

Corporate management: RS Platou Project Finance ASDisponent owner: Klaveness Marine Holding ASProject price: NOK 145 175 000Paid in capital: NOK 31 975 000Uncalled capital: NOK 10 000 000BB rate: NOK 50.500 net p.d.Bareboat charter: 7.5 years

Bareboat charterer: SBS Marine LtdCommencement of CP: April 07Expiry of CP: October 14


Residual value end CP: 150 000 000 Estimated IRR for buyer: 15%

CASHFLOW 2014E

Operating revenue 13 786 000Operating expenses -658 500Net operating cashfl ow 13 127 500 Interest earned 0Interest expenses -3 713 000Drawdown/ Repayment long term debt -67 050 000Net fi nancial items -70 763 000Purchase / Sale of vessel 120 000 000Net project cashfl ow 62 364 500Estimated dividend 66 800 000


Cash 4 747 000Implicit vessel value 120 765 000Total assets 125 512 000Outstanding debt 63 500 000Short term payables 1 012 000Total outstanding debt 64 512 000Estimated Project value 61 000 000

FINANCING COMMENTS

Mortgage: NOK 113 200 000 Balloon: NOK 59 950 000 Term: 7.5 years Semi-annually instalments NOK 1-15: 3 550 000 Interest: 5.31% The interest rate is fi xed for the entire fi xed charter period

The Charterer has paid BB hire on time and the project has been in compliance with the loan agreement throughout the bb period. The charter has a purchase option starting from end of year 3 until the end of the fi xed charter period. There is a 65/35 profi t split between the market value and the charterer optional price. The vessel’s present charterfree value is about NOK 150 mil.The base case scenario assume the purchase option being declared with profi t split.

Established: December 2005Paid in capital: NOK 17 869 000Uncalled capital: NOK 10 000 000Accumulated dividends: NOK 40 700 000

Estimated share value per 1%: NOK 610 000 Last reported sale per 1%: Jan 2011 NOK 450 000Estimated IRR Buyer: 15%Estimated IRR Seller: 19%

Latent tax liability vessel pr 1%: NOK -326 000Latent tax liability debt pr. 1%: NOK -

SBS TYPHOON KS KEY FIGURES (date of analysis: 30.06.2014) Project Broker: Chris W. Svensson, Corporate Manager: Erik Kristian Andresen

THE VESSELS

Vessel name: SOLD SBS TyphoonType: PSV, 2 x 2030 Bkw, VS 470 MK II, FIFI1, DP1DWT: 3 570Speed: 14 knotsYard: Aker Aukra Yard, NorwayBuilt: 2006Class: DNV - 1A1Flag: NIS

COMMERCIAL DETAILS

Corporate management: RS Platou Project Finance ASDisponent owner: Klaveness Marine Holding ASProject price: NOK 166 245 000Paid in capital: NOK 36 650 000Uncalled capital: NOK 25 000 000BB rate: Year 1-3: NOK per day: 60 000 net p.d. Year 4 - 5.5: NOK per day: 55 000 net p.d. Year 5.5 - 7.5: NOK per day: 53 000 net p.d.

Bareboat charter: 7.5 yearsBareboat charterer: SBS Marine LtdCommencement of CP: November 2006Expiry of CP: May 2014


Residual value end CP Estimated IRR for buyer:

CASHFLOW 2014E

Operating revenue 6 360 000Operating expenses -524 000Net operating cashfl ow 5 836 000 Interest earned 0Interest expenses -1 074 000Drawdown/ Repayment long term debt -73 000 000Net fi nancial items -74 074 000Purchase / Sale of vessel 128 150 000Net project cashfl ow 59 912 000Estimated dividend 60 371 000


Cash 0Implicit vessel value 0Total assets 0Outstanding debt 0Short term payables 0Total outstanding debt 0Estimated Project value 0

Mortgage: NOK 130 400 000 Balloon: NOK 68 900 000 Term: 7.5 years Semi-annually instalments NOK 1-15: 4 100 000 Interest: 90% of the loan 5.32% Fixed to April 2014 (incl. Margin) 10% of the loan Floating

FINANCING COMMENTS

The purchase option has been declared and the vessel was delivered back to the charterer end of May.The return to the investors accumulated to an IRR of 20%.

Established: January 2006Paid in capital: NOK 16 666 700Uncalled capital: NOK 25 000 000Accumulated dividends: NOK 106 550 000

Estimated share value per 1%: NOK - Last reported sale per 1%: N/AEstimated IRR Buyer: N/AEstimated IRR Seller: N/A

Latent tax liability vessel pr 1%: NOK - Latent tax liability debt pr. 1%: NOK -


SEMINYAK DIS KEY FIGURES (date of analysis: 30.06.2014) Project Broker: Axel M. Aas, Corporate Manager: Benjamin Ryeng-Hansen

THE VESSELS

Vessel name: MT Sira MT SimoaType: Chemical Tanker Chemical TankerDWT: 19 998 40 354Speed: 15.1 knots 13.5 knotsYard: Japan KoreaBuilt: 2008 2004Class: Nippon Kaiji Kyokai DNVFlag: Marshall Islands Marshall Islands


Residual value end CP: Estimated IRR: CASHFLOW 2013 2014E

Operating revenue 8 700 000 10 200 000Operating expenses -6 500 000 -5 700 000Dry docking -1 400 000 -200 000Net operating cashfl ow 800 000 4 300 000 Interest earned - -Interest expenses -1 600 000 -1 600 000Drawdown/ Repayment long term debt 0 -3 700 000Net fi nancial items -1 600 000 -5 300 000Net project cashfl ow -1 200 000 -1 200 000Estimated dividend - -


Cash 6 600 000Implicit vessel value 37 650 000Total assets 44 250 000Outstanding debt 43 250 000Short term payables 1 000 000Sellers credit -Total outstanding debt 44 250 000Estimated project value 0

FINANCING COMMENTS

Mortgage: USD 73 500 000Sellers Credit: USD 16 920 000Balloon: USD 14 000 000Term: USD 12 yearsQuarterly instalments USD 1 239 583Interest mortgage: Libor + 2.00% marginInterest sellers credit: 0.00%

Established: September 2008Paid in capital: USD 32 618 000Uncalled capital: -Accumulated dividends: -

Estimated share value per 1%: USD 66 000Last reported sale per 1%: N/AEstimated IRR Buyer: N/AEstimated IRR Seller: N/A

Latent tax benefi t vessel pr 1%: USD 1 200Latent tax benefi t debt pr. 1%: USD -15 400

COMMERCIAL DETAILS

Corporate management: RS Platou Project Finance ASDisponent owner: Klaveness Marine Holding ASProject price: USD 105 750 000Paid in capital: USD 32 618 000Uncalled capital: USD -

Pool: Navig8 Chemical pool Navig8 Handy poolCommencement of CP: April 2012 April 2012Expiry of CP: 3 months in advance 3 months in advance

SENTOSA OFFSHORE DIS KEY FIGURES (date of analysis: 30.06.2014) Project Broker: Chris W. Svensson Corporate Manager: Benjamin Ryeng-Hansen

THE VESSELS

Vessel name: Swiber Gallant Swiber Valiant Swiber Sandefjord SOLD Swiber OsloType: AHT AHT AHTS AHTSBHP: 5 000 5 000 5 000 5 000Speed: 12 knots 12 knots 13.5 knots 13.5 knotsYard: Malaysia / China Malaysia / China Malaysia / China Malaysia / ChinaBuilt: 2007 2007 2009 2009Class: GL GL BV BVFlag: Singapore Singapore Singapore Singapore

COMMERCIAL DETAILS


Paid in capital: USD 8 300 000Uncalled capital: USD 0Bareboat charterer: Swiber Offshore Marine Pte Ltd guaranteed by Swiber Holdings Ltd


Residual value end CP: USD 15 000 000 18 000 000 21 000 000 Estimated IRR: -5% 18% 34% CASHFLOW 2013 2014E 2015E 2016E 2017E

Operating revenue 6 351 000 5 423 000 4 486 000 1 848 000 1 202 000Operating expenses -228 000 -220 000 -222 000 -224 000 -226 000Net operating cashfl ow 6 123 000 5 203 000 4 264 000 1 624 000 976 000 Interest earned 2 000 - 20 000 20 000 20 000Interest expenses -1 542 000 -1 217 000 -795 000 -408 000 -270 000Drawdown/ Repayment long term debt -2 825 000 -9 350 000 -7 050 000 -775 000 -6 781 000Net fi nancial items -4 365 000 -10 567 000 -7 825 000 -1 163 000 -7 031 000Sale of vessel - 11 500 000 10 000 000 - 8 000 000Net project cashfl ow 1 758 000 6 136 000 6 439 000 461 000 1 945 000Estimated dividend 1 800 000 6 250 000 6 450 000 500 000 2 149 000


Cash 261 000Implicit vessel value 22 950 000Total assets 23 211 000Outstanding debt 13 631 000Short term payables 80 000Sellers credit 2 000 000Total outstanding debt 15 711 000Estimated project value 7 500 000

FINANCING COMMENTS

The charterer has purchase options from after year 5 to year 8 for Swiber Gallant and Swiber Valiant. The charterer will purchase Swiber Oslo end of June 2014. Hire is being paid on time. The project is running well.

Mortgage: USD 36 000 000 Sellers credit: USD 2 000 000 Balloon: USD 13 400 000 Term: 8 yearsQuarterly instalments: USD 706 250 Interest mortgage: Average of 5.85% including 1.25% marginInterest sellers credit: 3.50%

Swiber Gallant Swiber Valiant Swiber Sandefjord Swiber Oslo

BB rate: USD 3 650 pd USD 3 650 pd USD 5 050 pd USD 5 050 pdBareboat charter: 8 years 8 years 8 years 8 yearsCommencement of CP: December 2007 December 2007 August 2009 November 2009Expiry of CP: December 2015 December 2015 August 2017 November 2017

Established: July 2007Paid in capital: USD 8 300 000Uncalled capital: USD -Accumulated dividends: USD 12 865 000

Estimated share value per 1%: USD 75 000 Last reported sale per 1%: May 2013 N/A Estimated IRR Buyer: 16%Estimated IRR Seller: 16%



SINGAPORE OFFSHORE DIS KEY FIGURES (date of analysis: 30.06.2014) Project Broker: Axel M. Aas, Corporate Manager: Erik Kristian Andresen

THE VESSELS

Vessel name: Lewek Trogan SOLD Lewek Petrel Lewek Penguin SOLD Lewek Plover Lewek KeaType: AHTS, 18,000 BHP, Fifi 1, DP2 AHTS, 12,000 BHP, Fifi 1, DP2 AHTS, 12,000 BHP, Fifi 1, DP2 AHTS, 12,000 BHP, Fifi 1, DP2 AHT, 8,000 BHPDWT: 2800 2200 2200 2200 N/ATotal bollard pull (tonnes): 200 130 130 130 100Delivery May 2008 June 2008 June 2007 November 2008 February 2008Yard: Pan-United, Singapore Pan-United, Singapore Pan-United, Singapore Pan-United, Singapore Cheoy Lee, ChinaClass: American Bureau of Shipping American Bureau of Shipping American Bureau of Shipping American Bureau of Shipping Lloyd’s Register of Shipping

COMMERCIAL DETAILS

Corporate management: RS Platou Project Finance ASDisponent owner: Klaveness Marine Holding ASProject price: USD 129 100 000Paid in capital: USD 7 850 000Uncalled capital: USD 0

BB rate: 37 490 net p.d.Bareboat charter: 8 yearsBareboat charterer: Emas Offshore Pte. Ltd.Commencement of CP: June 2007Expiry of CP: December 2016

RESIDUAL VALUE SENSITIVITY ON IRR


CASHFLOW 2014E

Operating revenue 13 680 000Operating expenses -275 000Net operating cashfl ow 13 405 000 Interest earned 1 000Interest expenses -3 871 000Drawdown/ Repayment long term debt -6 606 000Net fi nancial items -10 476 000Purchase of Vessel Net project cashfl ow 2 929 000Estimated dividend 2 601 000


Cash 3 208 000Implicit vessel value 86 032 000Total assets 89 240 000Outstanding debt 61 187 000Short-term payables 553 000Sellers Credit 20 000 000Total outstanding debt 81 740 000Estimated project value 7 500 000

Mortgage: USD 100 000 000Sellers credit: USD 20 000 000Term: 8 yearsQuarterly instalments: USD 1: 330 000 USD 2: 495 000Interest: 90% of the morgage is fi xed at 6,598% USD 3: 991 000 USD 4-31 1 651 000 USD 32: 31 600 000 USD 33: 10 600 000 USD 34: 10 300 000

FINANCING COMMENTS

The Charterer has paid BB hire on time and the project has been in compliance with the loan agreement throughout the bb period. The charter has a purchase option at end of the fi xed charter period.In case the option is not declared, the sellers credit will be deleted. Two vessels were sold in Q2 14. The data has not been updated after the transaction.

Established: August 2006Paid in capital: USD 7 850 000Uncalled capital: USD 0Accumulated dividends: USD 8 615 000

Estimated share value per 1%: USD 75 000Last reported sale per 1%: April 2011 USD 97.500Estimated IRR Buyer: 16%Estimated IRR Seller: 16%

Latent tax liability vessel pr 1%: - USD 50 500Latent tax liability debt pr 1%: USD 5 100

SINGAPORE SUPPLY DIS KEY FIGURES (date of analysis: 30.06.2014) Project Broker: Chris W. Svensson, Corporate Manager: Eva Lise Bjerke

THE VESSELS

Vessels’ name: Hull 1067 to be namedType: STX PSV 09 Clean Design Platform Supply VesselDWT: 4 600Speed: 14,5 knotsYard: ASL Shipyard Pte. LtdBuilt: 2013Class: DNVFlagg: N/A

COMMERCIAL DETAILS

Corporate management: RS Platou Project Finance ASDisponent owner: Scantank ASProject price (resale case): USD 43 240 000

Paid in capital: USD 10 240 000Working capital / Stack up if delivered USD 1 200 000Uncalled capital: USD 8 580 000



CASHFLOW 2014E

Operating revenue N/AOperating expenses N/ANet operating cashfl ow N/A Interest earned N/AInterest expenses N/ADrawdown/ Repayment long term debt N/ANet fi nancial items N/A

Estimated dividend N/A

BALANCE 01.07.2014

Cash balance 280 000Impicit vessel value 11 460 000Total assets 11 740 000Outstanding debt 0Short term payables 0Sellers creditt 1 500 000Total outstanding debt 1 500 000Estimated project value 10 240 000

FINANCING COMMENTS

This is an asset play project based on the assumption that the vessel will be sold prior to delivery. Is sale is not concluded before delivery, Singapore Supply DIS, will take delivery and operate the vessel in the spot marked unill favourable offer has been received.

Established: March 2012Paid in capital: USD 10 240 000Uncalled capital : USD 8 580 000Accumulated dividends: 0

Estimated share value per 1 %: USD 102 400Last reported sale per 1 %: USD 102 400Estimated IRR Buyer : N/AEstimated IRR Seller : N/A



SOUTHERN CHEMICAL DIS KEY FIGURES (date of analysis: 30.06.2014) Project Broker: Chris W. Svensson, Corporate Manager: Eva Lise Bjerke

THE VESSELS

Vessels name: Alicudi M Lipari M Gelso MType: Chemical Tankers 40,083 Dwt 3,400 Dwt 18,000 DwtSpeed: 15 knots 15 knots N/AYard: Korea Italy TurkeyBuilt: 2004 2002 2008Class: Registro Ialiano Navale Registro Ialiano Navale Registro Ialiano NavaleFlag: Italian Italian Italian

COMMERCIAL DETAILS

Corporate management: RS Platou Project Finance ASDisponent owner: Bergshav Management ASProject price: EUR 88 200 000

Paid in capital: EUR 10 350 000Uncalled capital: EUR 10 000 000Bareboat charterer: Augusta DUE SRL

Alicudi M Lipari M Gelso M

Commencement of CP: October 2007 October 2007 June 2008 Expiry of CP: October 2017 October 2017 June 2018BB rate per day: EUR 9 750 EUR 4 950 EUR 7 800 Bareboat charter: 10 Years 10 Years 10 Years

FINANCING COMMENTSMortgage: EUR 69 200 000Balloon: EUR 30 500 000Term: EUR 10 yearsQuarterly instalments EUR Alicudi M tranche 415 000 EUR Lipari M tranche 207 500 EUR Gelso M tranche N/AInterest rate fi xed for the entire term of the loan (incl. margin): The Alicudi M and Lipari M tranches 5,5125 % EUR 44 400 000 The Gelso M tranche N/A EUR 24 800 000 Sellers Credit: EUR 8 650 000 Free of interestTerm. Balloon payment at end charter parties

Established: July 2007Paid in capital: EUR 16 350 000Uncalled capital: EUR 5 000 000Accumulated dividends: EUR 1 540 000

Estimated share value per 1%: EUR 54 000Last reported sale per 1%: January 08 EUR 110 500Estimated IRR Buyer: 20%Estimated IRR Seller: -16%

Latent tax liability vessel pr 1%: - EUR 13 700Latent tax benefi t debt pr. 1%:: - EUR 1 000

MT “Gelso“ grounded March 2012. The vessel was declared constructive totale loss April 2012. Insurance settlement was paid out October 2012.


Residual value end CP: 10 000 000 15 000 000 20 000 000Estimated IRR for buyer: -12% 20% 37% CASHFLOW 2013 2014E 2015E 2016E 2017E

Operating revenue 4 561 000 4 561 250 5 110 000 5 124 000 4 045 000Insurance settlement MT “Gelso” Operating expenses -235 000 -202 000 -204 000 -206 000 -300 000Net operating cashfl ow 4 326 000 4 359 250 4 906 000 4 918 000 3 745 000Sale of vessels 15 000 000Paid in capital Interest earned 0 0 0 0 0Interest expenses -1 779 000 -1 655 000 -1 475 000 -1 309 000 -895 000Drawdown/ Repayment long term debt -5 590 000 -2 490 000 -2 490 000 -2 490 000 -14 390 000Net fi nancial items -7 369 000 -4 145 000 -3 965 000 -3 799 000 -15 285 000Net projected cash fl ow -3 043 000 214 250 941 000 1 119 000 3 460 000Estimated dividend 0 -1 500 000 -1 000 000 -1 000 000 -6 600 000 BALANCE 01.07.2011

Cash 3 470 000Impicit vessel value 22 945 000Total assets 26 415 000Outstanding debt 15 065 000Short term payables 400 000Sellers credit 5 550 000Total outstanding debt 21 015 000Estimated project value 5 400 000

SUDONG OFFSHORE DIS KEY FIGURES (date of analysis: 30.06.2014) Project Broker: Axel M. Aas, Corporate Manager: Erik Kristian Andresen

THE VESSELS

Vessel name: Lewek SwanType: AHTS 12,240 BHP, FIFI1DWT: 2 300Speed: 13 knotsYard: Pan-Limited ShipyardBuilt: 2006Class: LR + 100A1Flag: Singapore

COMMERCIAL DETAILS

Corporate management: RS Platou Project Finance ASDisponent owner: Scantank ASProject price: USD 26 000 000Paid in capital: USD 8 200 000Uncalled capital: USD 0

BB rate pr day: USD 9200 / 4000Commencement of CP: October 2013Expiry of CP: October 2023/2025Bareboat charter: 10 + 2 yearsBareboat charterer: (a company nominated and guarented by Ezra Holdings PTE Ltd) Emas Offshore Pte Ltd




Operating revenue 3 358 000 3 358 000 3 367 000Operating expenses -129 000 -132 000 -134 000Net operating cashfl ow 3 229 000 3 226 000 3 233 000

Interest earned 0 0 0Interest expenses -607 000 -598 000 -533 000Drawdown/ Repayment long term debt -1 668 000 -1 668 000 -1 668 000Net fi nancial items -2 275 000 -2 266 000 -2 201 000Purchase of Vessel Net project cashfl ow 954 000 960 000 1 032 000Estimated dividend 800 000 950 000 1 050 000


Cash 337 000Implicit vessel value 25 122 000Total assets 25 459 000Outstanding debt 16 667 000Short term payables 92 000Sellers Credit 0Total outstanding debt 16 759 000Estimated project value 8 700 000

Mortgage: USD 15 000 000Sellers Credit: USD 2 500 000Balloon: USD 0Term: 9 yearsQuarterly instalments: USD Interest USD The interest rate is fi xed for the entire fi xed charter period (incl.margin).

FINANCING COMMENTS

The charterer is paying hire on time.The market value of the vessel is about USD 26 mill.

Established: October 2014Paid in capital: USD 8 200 000Uncalled capital: USD 0Accumulated dividends: USD 350 000

Estimated share value per 1%: USD 87 000Last reported sale pr 1%, April 2014: USD 85 250Estimated IRR Buyer: 15%Estimated IRR Seller: 15%

Latent tax benefi t vessel pr 1%: -USD 8 300Latent tax benefi t debt pr. 1%: -USD 500


ULLSWATER SUBSEA DIS KEY FIGURES (date of analysis: 30.06.2014) Project Broker: Axel M. Aas, Corporate Manager: Benjamin Ryeng-Hansen

THE VESSELS

Vessel name: SOV UllswaterType: Dive support vessel, 2 x 2030kw, DP2DWT: 2 500Speed: 12 knotsYard: Pan United Shipyard, SingaporeBuilt 2009Class: ABSFlag: Singapore

COMMERCIAL DETAILS

Corporate management: RS Platou Project Finance ASDisponent owner: NFC Ullswater Subsea LLCProject price: USD 48 820 000Paid in capital: USD 12 820 000Uncalled capital: USD 5 000 000

BB rate: USD 17 055 pd less 2%Bareboat charter: 10 yearsBareboat charterer: Hallin Marine Singapore Pte Ltd guaranteed by Superior Energy Services (International Holdings) LimitedCommencement of CP: 05.02.2009Expiry of CP: 05.02.2019



CASHFLOW 2013 2014E 2015E 2016E 2017E

Operating revenue 6 106 000 6 117 000 6 101 000 6 117 000 6 101 000Operating expenses -114 000 -127 000 -129 000 -131 000 -133 000Net operating cashfl ow 5 992 000 5 990 000 5 972 000 5 986 000 5 968 000 Interest earned - - - 10 000 10 000Interest expenses -1 800 000 -1 608 000 -1 450 000 -1 292 000 -1 126 000Drawdown/ Repayment long term debt -2 350 000 -2 350 000 -2 350 000 -2 350 000 -2 350 000Net fi nancial items -4 150 000 -3 958 000 -3 800 000 -3 632 000 -3 466 000Net project cashfl ow 1 842 000 2 032 000 2 172 000 2 354 000 2 502 000Estimated dividend 1 900 000 2 050 000 2 175 000 2 355 000 2 500 000


Cash 1 082 000Implicit vessel value 37 913 000Total assets 38 995 000Outstanding debt 23 075 000Short term payables 70 000Sellers credit 0Total outstanding debt 23 145 000Estimated project value 15 850 000

FINANCING COMMENTS

The Charterer has purchase options from after year 5 to year 10.The Charterer is paying hire in a timely manner.The Ullswater was valued to USD 52-54 million as at January 2014.

Mortgage: USD 36 000 000 Balloon: USD 12 500 000 Term: 10 yearsQuarterly instalments: USD 587 500 Interest mortgage: 6.805% including 1.30% margin

Established: May 2007Paid in capital: USD 12 820 000 Uncalled capital: USD 5 000 000Accumulated dividends: USD 9 438 400

Estimated share value per 1%: USD 158 500 Last reported sale per 1%: N/AEstimated IRR Buyer: 15%Estimated IRR Seller: 13%


VESTLAND MARINE SEISMIC DIS KEY FIGURES (date of analysis: 30.06.2014) Project Broker: Axel M. Aas, Corporate Manager: Benjamin Ryeng-Hansen

THE VESSELS

Vessel name: Geo SearcherType: 2D Seismikk research skipDWT: 1 083Speed: 12 knotsYard: Salthammer BåtbyggeriBuilt: 1982Class: RINAFlag: Malta

COMMERCIAL DETAILS

Corporate management: RS Platou Project Finance ASDisponent owner: -Project price: USD 1 550 000Paid in capital: USD 1 550 000Uncalled capital: USD 0

BB rate: USD 1 000 pd fi rst 6 mths or until vessel is employed. Thereafter USD 2 000 pd + profi t split.Bareboat charter: 3 yearsBareboat charterer: Grand Ocean Shipping Ltd guaranteed by Vestland Marine Sp. z.o.o.Commencement of CP: 01.03.2014Expiry of CP: 01.03.2017 RESIDUAL VALUE SENSITIVITY ON IRR LOW BASE HIGH

Residual value end CP: USD 1 Estimated IRR: 27%

CASHFLOW 2014 2015E 2016E 2017E

Operating revenue 489 000 913 000 915 000 147 000Operating expenses -630 000 -30 600 -31 000 -16 000Net operating cashfl ow -141 000 882 400 884 000 131 000 Purchase / sale of vessel -950 000 - - 1Net project cashfl ow -1 091 000 882 400 884 000 131 000Estimated dividend 450 000 885 000 885 000 136 000


Cash 7 000Implicit vessel value 1 553 000Total assets 1 560 000Outstanding debt 3 120 000 Short term payables 10 000 Sellers credit 4 690 000,00 Total outstanding debt 10 000 Estimated project value 1 550 000

FINANCING COMMENTS

Financial lease.Charterer has a purchase obligation at the end of the charter period to USD 1.

100% equity.

Established: February 2014Paid in capital: USD 1 550 000 Uncalled capital: USD -Accumulated dividends: USD 100 000

Estimated share value per 1%: USD 15 500Last reported sale per 1%: N/A Estimated IRR Buyer: 27%Estimated IRR Seller: 20%

Latent tax liability vessel pr 1%: N/A Latent tax liability debt pr. 1%: N/A


PROJECT PORTFOLIO

VESSELS AND CHARTERS

Project No of vessels Segment Built Charterer Type charter End of charter

Bukit Timah Offshore DIS 3 AHTS-Offshore 2009/10 Swiber Holdings Ltd Bareboat 2019/20Dongguan Chemical Tankers DIS 1 Chemical 2008 Dongguan Fenghai Ocean Shipping Co Bareboat 2016European Venture DIS 2 AHTS-Offshore 2005/06 Grup Servicii Petroliere S. A. Bareboat 2015European Venture III DIS 1 AHTS-Offshore 1983 Grup Servicii Petroliere S. A. Bareboat 2014Golden Kamsar DIS 1 Dry bulk 2010 Golden Ocean Group Ltd Bareboat 2020Industrial Shipping DIS 7 MPP-Dry bulk 1997-2000 TransAtlantic Short Sea Bulk AB Bareboat 2019Marineline Chemical DIS 3 Chemical 2006/07/08 Hanjin Shipping Co Ltd Bareboat 2014Med Ethylene DIS 2 Ethylene/LPG 1989/90 Synergas SRL Bareboat 2014Norwegian Product DIS 2 Product tankers 1996/98 Pritchard-Gordon Tankers Ltd Bareboat 2014Orchard Offshore DIS 4 AHTS-Offshore 2007/08 Swiber Holdings Ltd Bareboat 2015/16Panda Chemical II DIS 1 Chemical 2004 Pritchard-Gordon Tankers Ltd Bareboat 2015SBS Torrent KS 1 PSV-Offshore 2006 SBS Marine Ltd Bareboat 2014SBS Typhoon KS 1 PSV-Offshore 2006 SBS Marine Ltd Bareboat 2014Southern Chemical DIS 2 Chemical 2002/04 Augusta Due SRL Bareboat 2017Total 31

PLATOU SHIPINVEST I DIS Asset Manager: Trond Hamre

Established: October 2007

Product 8%

Dry Bulk 28%

Chemical 26%

Offshore 38%

SEGMENT DIVERSIFICATION (historic cost)

PROJECT PORTFOLIO, cont.

Project shares and diversifi cation Project Currency Share in project Invested per 1% Invested Share in portfolio Sold

Agder Ocean Reefer KS USD 20,0% 81 685 1 633 690 3,2% Apr. 12Agder Ocean Reefer II DIS USD 41,0% 69 195 2 837 000 5,6% Dec. 10Bergshav Chemical KS EUR 7,0% 89 105 623 735 1,6% Jan. 12Bukit Timah Offshore DIS USD 15,0% 292 700 4 390 500 8,7% Celine I OBO DIS USD 6,0% 15 000 90 000 0,2% Feb. 08Cement Ship II DIS USD 7,0% 66 000 462 000 0,9% Jan. 13Chem Cosmos DIS USD 20,0% 116 339 2 326 789 4,6% Mar. 10Chem Lily DIS USD 35,5% 133 816 4 750 475 9,4% Oct. 09Dongguan Chemical Tankers DIS USD 5,0% 71 500 357 500 0,7% European Venture DIS USD 8,0% 120 000 960 000 1,9% European Venture II DIS USD 2,0% 40 150 80 300 0,2% Jun. 10European Venture III DIS USD 18,0% 57 200 1 029 600 2,0% Global Cable KS USD 5,5% 35 000 192 500 0,4% Jul. 10Global Cable II DIS USD 14,0% 103 786 1 453 000 2,9% Feb. 14Golden Kamsar DIS USD 20,0% 231 000 4 620 000 9,2% Industrial Shipping DIS EUR 10,0% 57 500 575 000 1,1% Marineline Chemical DIS USD 10,0% 187 100 1 871 000 3,7% Med Ethylene DIS USD 1,0% 67 000 67 000 0,1% Multipurpose Bulkers DIS EUR 11,0% 68 227 750 500 1,9% May. 12NFC Panamax DIS USD 10,5% 51 000 535 500 1,1% May. 08Norwegian Product DIS USD 15,5% 108 500 1 681 750 3,3% Oceanlink Offshore I DIS USD 2,5% 26 500 66 250 0,1% Sep. 10Oceanlink Offshore II DIS USD 4,5% 24 400 109 800 0,2% Sep. 10Oceanlink Offshore III DIS USD 10,0% 48 450 484 500 1,0% Oct. 13Oceanlink Reefer III DIS USD 6,0% 52 000 312 000 0,6% Dec 12Orchard Offshore DIS USD 7,0% 90 000 630 000 1,2% Panda Chemical Oil DIS USD 32,5% 63 500 2 063 750 4,1% Jan. 14Panda Chemical II DIS USD 25,0% 18 150 453 750 0,9% Pantheon Chemical DIS EUR 20,0% 36 775 735 500 1,9% Mar. 10Raffl es Offshore DIS USD 15,0% 140 000 2 100 000 4,2% Jun. 13Ross Chemical II DIS USD 4,0 % 298000 1 192 000 2,4% Dec. 09Ross Chemical IV DIS USD 20,0% 130 000 2 600 000 5,2% Dec. 10SBS Tempest KS NOK 10,0% 370 000 3 700 000 1,2% Jun. 11SBS Torrent KS NOK 8,5% 386 000 3 281 000 1,1% SBS Typhoon KS NOK 20,0% 425 000 8 500 000 2,8% Scandinavian Bulkers KS EUR 6,0% 63 250 379 500 1,0% Jan. 10Short Sea Bulkers DIS EUR 20,0% 55 500 1 110 000 2,9% May. 12Southern Chemical DIS EUR 12,5% 166 660 2 083 250 5,4% Western Chemical DIS EUR 3,0% 106 000 318 000 0,8% Dec. 11Total (USD equivalent) 50 478 951 100 %

CHARTER DUPRATION

Southern Chemical DIS

SBS Typhoon KS

SBS Torrent KS

Panda Chemical II DIS

Orchard Offshore DIS

Norwegian Product DIS

Med Ethylene DIS

Marineline Chemical DIS

Industrial Shipping DIS

Golden Kamsar DIS

European Venture III DIS

European Venture DIS

Dongguan Chem.Tankers DIS

Bukit Timah Offshore DIS

Platou Shipinvest horizon

2014 2015 2016 2017 2018 2019 2020 2021


CONTACTSOSLO, NORWAY

RS PLATOU FINANS SHIPPING

PROJECT BROKERSAxel Moltzau AasManaging Director & Senior PartnerDir tel.: +47 23 11 28 06Mobile: +47 97 98 21 [email protected]

Chris W. SvenssonSenior PartnerDir tel.: +47 23 11 28 07Mobile: +47 95 18 96 [email protected]

Trond HamreSenior PartnerDir tel.: +47 23 11 28 09Mobile: +47 92 88 76 [email protected]

Morten AstrupProject BrokerDir tel.: +47 23 11 28 05Mobile: +47 92 45 80 [email protected]

Truls Wiese KolstadProject BrokerDir tel.: +47 23 11 28 15Mobile: +47 93 04 84 [email protected]

Heidi Meyer WestbyOffi ce ManagerDir tel.: +47 23 11 26 55Mobile: +47 93 40 20 [email protected]

RS PLATOU PROJECT FINANCE

CORPORATE MANAGERSBenjamin Ryeng-HansenManaging DirectorDir tel.: +47 23 11 26 68Mobile: +47 97 71 87 [email protected]

Eva Lise BjerkeCorporate ManagerDir tel.: +47 23 11 26 05Mobile: +47 90 96 37 [email protected]

Erik Kristian AndresenCorporate ManagerDir tel.: +47 23 11 26 54Mobile: +47 92 42 06 [email protected]

Elisabeth RelboSecretaryDir tel.: +47 23 11 26 56Mobile: +47 99 42 17 [email protected]

SINGAPORE OFFICE

R. S. PLATOU FINANS SINGAPORE PTE. LTD

PROJECT BROKER David P. ÖsterströmManaging PartnerDir. tel.: + 65 65 44 34 10Mobile: + 65 97 11 55 30 [email protected]

Natalie TehAccountantDir tel.: +65 65 44 34 16Mobile: +65 96 63 00 [email protected]

RS PLATOU INVESTOR SERVICES AS

Asbjørn WulfsbergManaging DirectorDir tel.: +47 23 11 26 66Fax: +47 23 11 23 27Mobile: +47 91 81 83 [email protected]

HEAD OFFICE

OSLO, NORWAY

RS PLATOU FINANS SHIPPING ASHaakon VII’s gate 10P.O. Box 1604 VikaN-0119 OsloPhone: +47 23 11 20 00Telefax: +47 23 11 23 27E-mail: fi [email protected]

RS PLATOU PROJECT FINANCE ASHaakon VII’s gate 10P.O. Box 1604 VikaN-0119 OsloPhone: +47 23 11 20 00Telefax: +47 23 11 23 27E-mail: [email protected]

RS PLATOU INVESTOR SERVICES AS ARSHaakon VII’s gate 10P.O. Box 1604 VikaN-0119 OsloPhone: +47 23 11 20 00Telefax: +47 23 11 23 27E-mail: [email protected]

Website: www.platou.com

SINGAPORE

R. S. PLATOU FINANS SINGAPORE PTE. LTD3 Temasek Avenue # 20-01 Centennial TowerSingapore, 039190Phone: +65 6303 4950Telefax: +65 6336 8740E-mail: [email protected]

63 CONTACTS62 HEAD OFFICE

MARKET REPORTJULY 2014

CONTENTSPrologue ................................................................. 1Projects per year .................................................... 12013 transaction market dominated by mid size transactions ...................................... 4Ensjøåsen Invest KS ............................................... 8Fyrstikkalleen 17 Invest AS .................................... 9Gamle Forusvei Invest AS ..................................... 10Gråterudveien 8 KS .............................................. 11Hillevågsenteret Holding KS ................................ 12Hvam Eiendomsinvest KS..................................... 13Slependveien 54-58 Utvikling AS.......................... 14Tverrveien Eiendom AS ........................................ 15Østensjøveien 27 Holding AS ................................ 16Contacts ............................................................... 17

PROJECTS PER YEAR PROJECT NAME NO. OF UNITS FACILITATED SEGMENT ACQUISITION VALUE EQUITY

PROJECT EXECUTED 2013

Cecilie Thoresensvei 3 1 January 13 Retail NOK 140 000 000 NOK 42 000 000 Hillevågsenteret 1 June 13 Retail NOK 225 000 000 NOK 70 000 000 Landøyveien 2 1 April 13 Retail NOK 110 000 000 NOK 33 000 000 Bygdøy alle 1 June 13 Offi ce NOK 80 000 000 NOK 24 000 000 Slependveien 54-58 1 June 13 Retail NOK 73 000 000 NOK 17 000 000 Vågsenteret 1 December 13 Retail NOK 70 000 000 NOK 21 000 000 Gamle Forusvei 17-21 2 November 13 Offi ce NOK 425 000 000 NOK 70 000 000 Østensjøveien 27 1 November 13 Offi ce NOK 452 500 000 NOK 131 000 000 Billingstadsletta 97 1 September 13 Offi ce NOK 30 000 000 NOK 9 000 000 Retail box 1 June 13 Retail NOK 76 000 000 NOK 22 800 000 CBD project 1 December 13 N/A NOK 285 000 000 NOK 100 000 000

PROLOGUEDEAR INVESTORS AND BUSINESS ASSOCIATES,

2013 was dominated by mid-size transaction and the usual transac-tion cycle where Q4 represented almost 50% of the overall transac-tion market. RS Platou Real Estate AS took a major leap forward in 2013 and concluded transactions for a gross value of NOK 2.1 billion, placing us as the second largest syndicate player in the Norwegian Market.

� e Transaction market was fuelled both by, stable low rents, more lending capacity in the banks and an increase in the rent levels around the larger cities. As predicted last year we see that both the investors and the banks di� erentiate between newer modern buildings and old buildings as well as macro and micro location – all focusing on lock-ing in the residual value risk. � e e� ect is that the spreads between prime CBD property and properties in the outskirts are increasing, and giving great cash � ow opportunities for investors willing to take a higher residual risk.

RS Platou Real Estate continues with their core strategy to o� er a wide range of investment opportunities for professional and sophisticated real-estate-investors. In 2013 we concluded projects with housing de-velopment potentials (Slependveien), local shopping centers (Hille-våg) as well as state-of-the-art o� ce in Oslo (Østensjøveien). We, as many others, experienced that foreign investors showed strength in 2013 and we expect them to be even more present in 2014.

Even though the � rst quarter in 2014 in general was slow, we see that our way of sourcing deals through proactive work towards private real estate owners procure us with a lot of interesting investment opportu-nities that we hope to present to our clients throughout 2014.

1 REAL ESTATE

Stian Nicolaus Managing Partner

Hans Martin Haug Senior Partner

Pål Sandal Partner

Tom Bøhler Managing Partner

Thomas Ødegård Managing Director

Axel OlsenFacility Manager

RS Platou Real Estate AS

RS Platou Real Estate

Project Finance

RS Platou Property Management

Asset Management

Dag Straume Senior Advisor

3 REAL ESTATE2 REAL ESTATE

appetite, probably until we see a reduction in the construction cost which has already started.

Going on, RS Platou Real Estate will focus on both yielding and operational projects. Regarding yielding assets investors focus on the annual equity dividend, and buildings of high quality preferably future built. We seek operational projects were you combine an underlying cash-� ow with the opportunity to fur-ther develop and/or refurbish. FINANCING� e � nancing di� culties we experienced in 2012 were some of Norway’s largest industrial real estate players did not get tra-ditional bank � nancing, has come to an end. It looks like the banks in general are more comfortable with the new EU regula-tions regarding risk and equity. � e improved � nancial climate

ment with Agasti which is a one of the largest fund managers in the Norwegian market. RS Platou Real Estate will, going for-ward, focus on core strategy and scale on its existing platform.

Even though the overall transaction volume was below expecta-tions, the activity in the transaction market was high with re-gards to the number of transactions. � e banks are more willing to lend which in turn makes capital available to real estate inves-tors. � e bank margins have furthermore decreased approx. 25-50 bps during 1H 2014, fueling the market activity.

During the year we have experienced that foreign investors have been more interested in the Norwegian market, many of them making their � rst investment here. One of the largest new eq-uity investors in a RS Platou Real Estate projects is a UK based fund. Our view is that foreign investors want to have direct own-ership in the assets rather than indirectly through listed com-panies. We register that our competitors as well structure new buyers dominated by foreign capital. One of the largest stand-alone deals so far in 2014 was bought by an American fund. Hopefully we will see an increase in their investment appetite the upcoming year.

Like previous years, the equity market is dominated by profes-sional investors. � e investment scope has somewhat changed through the year, from focusing on high-risk residential con-version projects, to more focusing on yielding assets and ordinary refurbishment projects. Low rents and reasonable margins from the banks give a lot of investors a good running yearly cash � ow unless they invest in core CBD o� ce. As we communicated last year, the strong housing market over the last years made many investors focus on residential conver-sion projects with a potential higher return, and Platou Real Estate was involved in several of that kind. � e weaker outlook in the residential market has however reduced the investment

NORWEGIAN MARKET 2013In 2013 Platou Real Estate concluded 12 projects with an in-vestment value of NOK 2,1 billion – making us the second larg-est syndicate-player in the market. � e total transaction market ended up a bit below previous expectations, estimated at total of NOK 38 billion, giving RS Platou Real Estate 5,5% of the overall market. Primo 2013 consensus expected a transaction volume above NOK 50 billion, but this did not happen due to the absence of large single assets transactions and/or large cor-porate � nance real estate transactions.

During 2013 RS Platou Real Estate sold RS Platou Fund Man-agement to Agasti Holding ASA. A tightening regulatory frame-work, most recently with the new AIFMD Directive, makes it more di� cult for mid/small size property funds. RS Platou Fund Management’s assets are too small and we’re likely to see several other smaller niche players will eventually realize the same. Due to this, RS Platou Real Estate entered into an agree-

RS PLATOU REAL ESTATE

2013 TRANSACTION MARKET DOMINATED BY MID SIZE TRANSACTIONS

has resulted in a decrease in margins, given a solid ownership structure. � e LTV has however gone down, from the historical 70-75% average to a 60-70% average. � is can in turn pose a po-tential problem for syndicates established in the period 2005-2008, with an ongoing LTV of 75-80%, which is re� nancing the coming year(s).

Bond � nancing is still an a� ractive � nancing alternative, and can be competitive on price compared to traditional bank � -nancing, this applies primarily for large industrial real estate companies e.g. Olav � on and Norwegian Property. � e vol-ume of bond � nancing is however lower in 2013 due to more competitive banks. RS Platou Real Estate has combined bank and bond � nancing on one of the projects completed in Decem-ber 2013 (Østensjøveien 27).

Source: RS Platou

ANNUAL NORWEGIAN TRANSACTION VOLUME

0

20

40

60

80

13121110090807060504

Bill NOK

Østensjøveien 27, Oslo. Nominated MIPIM Awards 2014: “Best Innovative Green Building”.



ENSJØÅSEN INVEST KS

COMMENTS

Asset manager Corporate manager Broker Report date 30.06.14Name: Tom Bøhler Thomas Ødegård Stian Nicolaus Status date 30.06.14Phone: +47 906 61 187 / 23 11 26 74 +47 913 31 182 / 23 11 26 62 +47 954 86 066 / 23 11 26 72Mail: [email protected] [email protected] [email protected]

COMPANY AND PROPERTY INFORMATION

Name Ensjøåsen Invest KSAddress co/ RS Platou Property Management AS Founded October 2011Property location Grenseveien 97, Helsfyr, Oslo Segment Offi ce/Warehouse/Development residential Plot N/ABuilding area 12 229Year of Construction 1965-95Property tax value as per 31.12.2013 23 236 729Net Cash and receivables 4 293 000Shareholder tax value as of 30.06.2014 0

KEY POINTS

Initial yield 7.4 %Running yield 7.2 %Date of total initial payment 22.02.10Real estate purchase price (project price) 165 000 000Paid in equity 30 500 000Estimated IRR N/ARealized IRR N/AUncalled capital 0 %Gross rent per square meter incl. parking 997 Estimated annual dev. cost (SD annual 1,5 mill) 2 000 000

FINANCING

Balance Date RateFloating 88 250 000 01.06.14 1,69 %Fixed 5Y 38 250 000 01.12.16 3,18 %Vendor note 7 000 000 01.12.16 9,00 %Margin 2,35 %Estimated interest rate incl. margin 4,73 %Total 133 500 000

TRADING OF SHARES

Last traded N/ADate last traded N/ASeller on price N/ABuyer on price N/A

TENANTS 2014

Name Average duration Gross rent IndexAsian Food Import AS 3 720 037 100 %GS Bildeler AS 2 423 821 100 %HC Andersen revisjon 703 109 100 %Vega Partners AS 697 038 100 %Øyvind Moen AS 685 918 100 %Global Knowledge AS 593 850 100 %Advokatfi rmaet Hulaas & Co 461 900 100 %Akelius AS 672 765 100 %Group of smaller tenants 2 233 493 100 % Apppr. 3,0 years 12 191 931 100 %

DESKTOP FORECAST

2014E 2015EGross rent 12 191 931 12 374 810Owners cost (incl. common costs) -300 000 -304 500Net rent 11 891 931 12 070 310Corporate management / auditor fee -600 000 -609 000Net rent 11 291 931 11 461 310Net Interest -6 145 000 -6 330 000Tax estimate -1 311 015 -1 306 641Installments -2 000 000 -2 000 000Estimated cash-fl ow 1 835 916 1 824 669Estimated cash-fl ow in % of paid-in-equity 6,0 % 6,0 %

ESTIMATED VALUE 30.06.2014 (BASIS FORECAST 2014 )

Yield sensitivity 7,00 % 7,50 % 8,00 %Estimated real estate value 169 884 729 158 559 080 148 649 138Tax disadvantage -16 131 280 -14 885 459 -13 795 365Net debt (incl. cash and receivables) -129 207 000 -129 207 000 -129 207 000NAV 24 546 449 14 466 621 5 646 773 Estimated value fi xed interest rate -1 355 398 -1 355 398 -1 355 398NAV incl fi xed interest rate 23 191 051 13 111 223 4 291 375NAV incl fi xed interest rate per share 231 911 131 112 42 914Number of shares 100 100 100 Real estate value per square meter 13 892 12 966 12 155Implied leverage 85 % 91 % 97 %

An ongoing development project where part of the land partitioned and development with approximately 150 apartments for sale. The construction of apartments is planned to start in mid-2015.

FYRSTIKKALLÉEN 17 INVEST AS

COMMENTS



Name Fyrstikkalleen 17 Invest ASAddress co/ RS Platou Property Management AS Founded November 2012Property location Fyrstikkalleen 17, Helsfyr, Oslo Segment Industry Plot Building area 4 075Year of Construction 1930-1939Property tax value as per 31.12.2013 2 537 676Net Cash and receivables 900 000

KEY POINTS

Initial yield 6,6 %Running yield 7,6 %Date of total initial payment 22.02.10Real estate purchase price (project price) 42 500 000Paid in equity 10 600 000Estimated IRR N/ARealized IRR 0 %Uncalled capital N/AGross rent per square meter incl. parking - Estimated annual dev. cost (SD annual 975,000) 1 335 000

FINANCING

Balance Date RateFloating 31 010 000 12.06.14 1,70 %Margin 2,20 %Estimated interest rate incl. margin 3,90 %Total 31 010 000

TRADING OF SHARES


Offi ce and industrial property with current rental income which is scheduled converted to apartments and additional spaces to a nearby school. An ongoing rezoning process is assumed completed in mid-2015 where the modifi cation can begin.

TENANTS 2014

Name Average duration Gross rent IndexJames Walker Norge AS 1 260 660 100 %Macsimum Design AS 283 152 100 %Norske Grafi keres Verksted AS 406 176 100 %Skintifi c AS 631 030 100 %HK Regnskap 408 400 100 % Ca. 3 years 2 989 418 100 %

DESKTOP FORECAST 1.5 % 2.0 %

2012 2013E 2014EGross rent 3 300 000 2 989 418 3 034 259Owners cost 8.0 % -264 000 -239 153 -242 741Net rent 3 036 000 2 750 265 2 791 519Corp. + development cost 30.0 % -990 000 -1 004 850 -1 024 947Net rent 2 046 000 1 745 415 1 766 572Net Interest -1 296 000 -1 296 000 -1 269 270Tax estimate -180 628 -96 464 -109 872Installments 0 660 000 660 000Estimated cash-fl ow 569 372 1 012 950 1 047 429Estimated cash-fl ow in % of paid-in-equity 5.2 % 9.2 % 9.5 %

VALUE

Yield sensitivity 6.75 % 7.25 % 7.75 %Estimated real estate value 40 744 660 37 934 684 35 487 285Tax disadvantage -3 904 963 -3 595 865 -3 326 651Net debt (incl. cash and receivables) -31 770 000 -31 770 000 -31 770 000NAV 5 069 698 2 568 818 390 633

Estimated value fi xed interest rate 0 0 0NAV incl fi xed interest rate 5 069 698 2 568 818 390 633NAV incl fi xed interest rate per share 50 697 25 688 3 906Number of shares 100 100 100

Real estate value per square meter 10 123 9 425 8 817Implied leverage 86 % 93 % 99 %


GRÅTERUDVEIEN 8 KS

COMMENTS

Asset manager Corporate manager Broker Report date 30.06.14Name: Tom Bøhler Thomas Ødegård Pål Sandal Status date 30.06.14Phone: +47 906 61 187 / 23 11 26 74 +47 913 31 182 / 23 11 26 62 +47 938 80 083 / 23 11 26 73Mail: [email protected] [email protected] [email protected]


Name Gråterudveien 8 KSAddress co/ RS Platou Property Management AS Founded fredag april 30, 2004Property location Gråterudveien 8Segment Industry/offi ceLot 17 009 (Freehold)Building area 6 000Year of Construction 1985Tax Value (estimated) 29 947 173Estimated net cash and receivables 2 372 000Shareholder tax value as of 30.06.2014 0

KEY POINTS

Initial yield 8,25 %Running yield 9,5 %Date of total initial payment fredag 30. april 04Real estate purchase price (project price) 55 000 000Paid in equity 14 000 000Paid out equity 8 390 000Estimated IRR N/ARealized IRR N/AUncalled capital 9 780 000 Gross rent per square meter incl. parking 1 196

FINANCING

Balance Date RateFloating 27 500 000 18.06.14 1,72 %10Y fi xed 18 500 000 30.12.21 3,56 %Margin 2,25 %Estimated interest rate incl. margin 4,46 %Total 46 000 000

TRADING OF SHARES

Last traded NOK pr. 0,5 %, 130 000 Date last traded September 2013Seller on price N/ABuyer on price N/A

Single tenant building with Eltek ASA. The tenant has had a positive development, and the stock price have increased from NOK 3,00 per share to NOK 9,00 per share over the last two years. They have signaled that they possibly want to expand their premises. The company is being transformed from an unlimited to a limited partnership.

TENANTS 2014

Name Average duration Gross rent IndexEltek ASA 8,25 7 153 788 100 %TeliaSonera Norge AS 9,75 21 000 100 %Total 8,25 7 174 788 100 %

DESKTOP FORECAST 2,0 %

2014E 2015E 2016EGross rent 7 174 788 7 318 284 7 464 649Ownership cost 7,0 % -502 235 -512 280 -522 525Net rent 6 672 553 6 806 004 6 942 124Asset/Corp. management 1,5 % -107 622 -109 774 -111 970Net rent 6 564 931 6 696 230 6 830 154Net interest -2 205 264 -2 088 002 -1 961 042Tax estimate N/A N/A N/AInstallments -2 000 000 -2 000 000 -2 000 000Estimated divided -2 000 000 -2 000 000 -2 000 000Estimated cash-fl ow 359 667 608 228 869 112Estimated cash-fl ow in % of paid-in-equity 16,9 % 18,6 % 20,5 %

ESTIMATED VALUE 30.06.2014

Yield sensitivity 8,25 % 8,50 % 8,75 %Estimated value G8 82 497 017 80 070 634 77 782 902Estimated value G14 7 000 000 7 000 000 7 000 000Tax disadvantage (10,0%) -5 254 984 -5 012 346 -4 783 573Net debt (incl. cash and receivables) -43 628 000 -43 628 000 -43 628 000NAV 40 614 033 38 430 288 36 371 329 Estimated value fi xed interest rate -821 216 -821 216 -821 216NAV incl fi xed interest rate 39 792 817 37 609 072 35 550 113NAV incl fi xed interest rate per share 397 928 376 091 355 501Number of shares 100 100 100 Real estate value per square meter 14 916 14 512 14 130Implied leverage 52 % 54 % 55 %

GAMLE FORUSVEI INVEST AS

COMMENTS

Asset manager Corporate manager Broker Report date 30.06.14Name: Tom Bøhler Thomas Ødegård Hans Martin Haug Status date 30.06.14Phone: +47 906 61 187 / 23 11 26 74 +47 913 31 182 / 23 11 26 62 +47 900 66 966 / 23 11 26 71Mail: [email protected] [email protected] [email protected]


Name Gamle Forusvei Invest ASAddress co/ RS Platou Property Management AS Founded desember 2013Property location Gamle Forusvei 17-21Segment Offi ce/StorageLot 5 000Building area 16 449Year of Construction 1985-2010Tax Value (estimated) 238 000 000Estimated net cash and receivables 2 903 989Shareholder tax value as of 31.03.2014 0

KEY POINTS

Initial yield 7,0 %Running yield Date of total initial payment desember 2013Real estate purchase price (project price) 335 000 000Paid in equity 67 500 000Paid out equity 0Estimated IRR 16,50 %Realized IRR N/AUncalled capital 0Gross rent per square meter incl. parking 1 448

FINANCING

Bank: Balance Date RateFloating 134 000 000 01.07.14 1,70 %5Y Fixed 134 000 000 20.12.18 2,45 % Margin 2,45 %Estimated interest rate incl. margin 4,53 %Total 268 000 000 4,53 %%

TRADING OF SHARES


TENANTS 2014

Name Average duration Rent IndexRoxar 23 813 574 100 %Total 9 years 23 813 574 100 %


2014 2015E 2016Gross rent 23 813 574 24 289 845 24 775 642Ownership cost -950 000 -969 000 -988 380Net rent 22 863 574 23 320 845 23 787 262Asset/Corp. management -356 000 -363 120 -370 382Net rent 22 507 574 22 957 725 23 416 880Net interest -12 127 000 -12 127 000 -12 187 635Tax estimate N/A N/A N/AInstallments 0 -1 340 000 -5 360 000Net cashfl ow from GF 11 500 000 500 000 0Estimated cash-fl ow 10 880 574 9 990 725 5 869 245Estimated cash-fl ow in % of paid-in-equity 16,1 % 14,8 % 8,7 %


Yield sensitivity 6,50 % 6,75 % 7,00 %Estimated real estate value 358 782 238 345 494 007 333 154 935Estimated development value 0 0 0Tax disadvantage (10%) -12 078 224 -10 749 401 -9 515 494Net debt (incl. cash and receivables) -265 096 011 -265 096 011 -265 096 011NAV 81 608 003 69 648 595 58 543 431 Estimated value fi xed interest rate 0 0 0NAV incl fi xed interest rate 81 608 003 69 648 595 58 543 431NAV incl fi xed interest rate per share 816 080 696 486 585 434Number of shares 100 100 100 Real estate value per square meter 21 812 21 004 20 254Implied leverage 76 % 79 % 82 %

“Bare house” lease agreement. The project price does not include Gamle Forus vei 11.The daily operation of the property is going well and maintained mainly by Roxar. Roxar has put into operation the new test facility in which they have invested approx. USD 2.2 mill. The asset manager has obtained an offer regarding replacement of the roofs and windows in the testing facility and this is estimated to cost approx. 340,000. Roxar is reporting positive growth and many new employees. Roxar’s warehouse and production capacity in Gamle Forusvei 11 is stressed, consequently the asset manager is in dialogue with Roxar to accommodate Roxar’s growing need for this type of areas.


HILLEVÅGSENTERET HOLDING KS

COMMENTS

Asset manager Corporate manager Broker Report date 30.06.14Name: Tom Bøhler Thomas Ødegård Pål Sandal Status date 30.06.14Phone: +47 906 61 187 / 23 11 26 74 +47 913 31 182 / 23 11 26 62 +47 938 80 083 / 23 11 26 73Mail: [email protected] [email protected] [email protected]


Name Hillevågsenteret Holding KSAddress co/ RS Platou Property Management AS Founded September 2013Property location Hillevågsveien 25-33Segment RetailLot 8 760Building area 14 930Year of Construction 1987-2012Tax Value (estimated) 216 585 000Estimated net cash and receivables 4 873 969Shareholder tax value as of 31.03.2014 0

KEY POINTS

Initial yield 7,5 %Running yield 7,0 %Date of total initial payment September 2013Real estate purchase price (project price) 220 080 000Paid in equity 70 000 000Paid out equity 5 000 000Estimated IRR 12,20 %Realized IRR N/AUncalled capital 0Gross rent per square meter incl. parking 1 108

FINANCING

Bank: Balance Date RateFloating 160 000 000 01.07.14 1,75 % Margin 2,25 %Estimated interest rate incl. margin 4,00 %Total 160 000 000 4,00 %

TRADING OF SHARES

Last traded N/A Date last traded N/ASeller on price N/ABuyer on price N/A

The project was acquired in September 2013 from Otium Næring AS. The majority owner, a local real estate investor, has the asset management of the property. The overall turnover is positive for the property, and the small vacant areas are guaranteed by the Seller. One of the big housing developers in the region, Køhlergruppen, is going to develop 400 new appartements on the property next to Hillevågsenteret.

TENANTS 2014

Name Average duration Gross rent IndexName Average duration Rent IndexElixia Nordics AS 3 762 379 100 %Jula Norge As 4 268 219 100 %Aske Rogaland AS 2 323 296 100 %Helse Vest IKT 1 647 449 100 %Stoff & Stil Norge AS 900 000 100 %Stavanger Idrettsklinikk 620 623 100 %Others 3 020 542 100 %Total 9 years 16 542 508 100 %


2014E 2015E 2016EGross rent 16 542 508 17 409 635 18 630 612Ownership cost -1 100 000 -1 122 000 -1 144 440Net rent 15 442 508 16 287 635 17 486 172Asset/Corp. management -440 000 -448 800 -457 776Net rent 15 002 508 15 838 835 17 028 396Net interest -6 400 000 -6 510 000 -6 730 000Tax estimate N/A N/A N/AInstallments -2 750 000 -5 500 000 -5 500 000Estimated cash-fl ow 5 852 508 3 828 835 4 798 396Estimated cash-fl ow in % of paid-in-equity 8,4 % 5,5 % 6,9 %


Yield sensitivity 7,00 % 7,25 % 7,50 %Estimated real estate value 249 802 457 241 188 579 233 148 960Estimated development value 0 0 0Tax disadvantage (10%) -24 980 246 -24 118 858 -23 314 896Net debt (incl. cash and receivables) -155 126 031 -155 126 031 -155 126 031NAV 69 696 180 61 943 690 54 708 033 Estimated value fi xed interest rate 0 0 0NAV incl fi xed interest rate 69 696 180 61 943 690 54 708 033NAV incl fi xed interest rate per share 696 962 619 437 547 080Number of shares 100 100 100 Real estate value per square meter 16 732 16 155 15 616Implied leverage 69 % 71 % 74 %

HVAM EIENDOMSINVEST KS

COMMENTS



Name Hvam Eiendomsinvest KSAddress co/ RS Platou Property Management AS Founded 08.12.2011Property location Jogstadveien 25Segment Logistics/industry/offi ceLot LeaseholdBuilding area 11 826Year of Construction 2011Tax Value (estimated) 137 000 000Estimated net cash and receivables 9 904 980Shareholder tax value as of 30.06.2014 0

KEY POINTS

Initial yield 8,0 %Running yield 8,1 %Date of total initial payment 20.12.11Real estate purchase price (project price) 171 537 000Paid in equity 43 000 000Paid out equity 0Estimated IRR 17,00 %Realized IRR N/AUncalled capital 0Gross rent per square meter incl. parking 1 327

FINANCING

Balance Date RateFloating 62 750 000 22.06.14 1,70 %7Y fi xed 62 500 000 27.12.18 3,37 %Margin 2,30 %Estimated interest rate incl. margin 4,81 %Total 125 250 000

TRADING OF SHARES

Last traded 460 100 Date last traded 15.10.12Seller on price N/ABuyer on price N/A

The company has experienced two bankruptcies, however guarantees from seller have secured continued cash-fl ow. In fi nal negotiations of signing a new lease with a large and solid tenant on the Hvam Bilsenter premises – probably signed in July. Two positive ongoing dialogues regarding the Enghav premises.

TENANTS 2014

Name Average duration Gross rent IndexEikmaskin AS 2 053 136 100 %GK Norge AS 2 437 872 100 %Lubeco AS 1 454 468 100 %Enghav (Garanti fra Domstein) 4 943 284 100 %Snap Drive AS 1 972 524 100 %Hvam Bilsenter (Leiegaranti fra Union) 2 174 384 100 %Total 9 years 15 035 668 100 %


2014E 2015E 2016EGross rent 15 035 668 15 261 203 15 490 121Ownership cost (incl. parkingrent) 10,0 % -1 503 567 -1 526 120 -1 549 012Net rent 13 532 101 13 735 083 13 941 109Asset/Corp. management -500 000 -507 500 -515 113Net rent 13 032 101 13 227 583 13 425 996Net interest -6 143 878 -5 420 659 -5 271 047Tax estimate N/A N/A N/AInstallments -2 500 000 -3 000 000 -3 500 000Estimated cash-fl ow 4 388 223 4 806 924 4 654 949Estimated cash-fl ow in % of paid-in-equity 10,2 % 11,2 % 10,8 %

VALUE (BASIS FORECAST 2014 )

Yield sensitivity 7,25 % 7,50 % 7,75 %Estimated real estate value 189 449 417 183 134 436 177 226 874Estimated development value 0 0 0Tax disadvantage (7,0%) -3 671 459 -3 229 411 -2 815 881Net debt (incl. cash and receivables) -115 345 020 -115 345 020 -115 345 020NAV 70 432 938 64 560 006 59 065 973 Estimated value fi xed interest rate 0 0 0NAV incl fi xed interest rate 70 432 938 64 560 006 59 065 973NAV incl fi xed interest rate per share 704 329 645 600 590 660Number of shares 100 100 100 Real estate value per square meter 16 020 15 486 14 986Implied leverage 62 % 64 % 66 %


SLEPENDVEIEN 54-58 UTVIKLING AS

COMMENTS



Name Slependveien 54-58 Utvikling ASAddress co/ RS Platou Property Management AS Founded June 2013Property location Slependveien 54-58Segment Offi ce/RetailLot 8 166Building area 3 700Year of Construction N/ATax Value (estimated) 21 883 344Estimated net cash and receivables 785 500Shareholder tax value as of 30.06.2014 0

KEY POINTS

Initial yield 6,6 %Running yield 6,6 %Date of total initial payment November 2013Real estate purchase price (project price) 73 000 000Paid in equity 13 000 000Paid out equity 0Estimated IRR 20,00 %Realized IRR N/AUncalled capital 0Gross rent per square meter incl. parking 1 446

FINANCING

Balance Date RateFloating 53 875 000 03.07.14 1,74 %Margin 2,50Total 53 875 000 4,24 %

TRADING OF SHARES


An ongoing development project. In a positive dialogue with the municipality of Bærum regarding a potential conversion from retail to residential.

TENANTS 2014

Name Average duration Rent IndexAll tenants 5 351 286 100 %Total 4 years 5 351 286 100 %


2014E 2015E 2016EGross rent 5 351 286 5 458 312 5 567 478Ownership cost -544 144 -555 027 -566 127Net rent 4 807 142 4 903 285 5 001 351Asset/Corp. management -554 000 -565 080 -576 382Net rent 4 253 142 4 338 205 4 424 969Net interest -2 394 136 -2 417 876 -2 361 813Tax estimate N/A N/A N/AInstallments -1 500 000 -1 500 000 -1 500 000Estimated cash-fl ow 359 006 420 329 563 156Estimated cash-fl ow in % of paid-in-equity 2,8 % 3,2 % 4,3 %


Yield sensitivity 6,25 % 6,50 % 6,75 %Estimated real estate value 78 452 557 75 435 151 72 641 257Estimated development value 0 0 0Tax disadvantage (7,0%) -6 222 613 -5 890 699 -5 583 370Net debt (incl. cash and receivables) -53 089 500 -53 089 500 -53 089 500NAV 19 140 444 16 454 953 13 968 386 Estimated value fi xed interest rate 0 0 0NAV incl fi xed interest rate 19 140 444 16 454 953 13 968 386NAV incl fi xed interest rate per share 191 404 164 550 139 684Number of shares 100 100 100 Real estate value per square meter 21 203 20 388 19 633Implied leverage 74 % 76 % 79 %

TVERRVEIEN EIENDOM AS

COMMENTS



Name Tverrveien Eiendom ASAddress co/ RS Platou Property Management AS Founded juni-08Property location Tverrveien 4Segment Logistics/industryLot 37 948Building area 11 577Year of Construction From 1996Tax value 46 808 087Net Cash and receivables 9 838 000

KEY POINTS

Initial yield 7,2 %Running yield 7,6 %Real estate purchase price (project price) 138 500 000Paid in equity 36 700 000Paid out equity 0Estimated IRR N/ARealized IRR N/AUncalled capital 0Gross rent per square meter incl. parking 949

FINANCING

Bank: Balance Date Rate1Y Fixed 86 425 000 01.07.15 5,99 % Margin 0,95 %Estimated interest rate incl. margin 6,94 %Total 86 425 000

TRADING OF SHARES


Industrial and offi ce property. Scana is the main tenant - an international industrial company. Scana has recently sold parts of the business to Aqua Marine Subsea AS. Negotiations for new and extended leases expected to be completed by the end of 2014.

TENANTS 2014

Name Average duration Rent IndexScana Offshore Vestby AS (kontor) 1 945 354 70 %Scana Offshore Vestby AS (industrihaller) 4 489 697 100 %Scana Offshore Vestby AS (kaldt lager) 451 022 100 %Scana Parkering / 20 stk 27 289 100 %Qualifi ed Logistics 2 718 263 100 %Dan Cargo AS 1 356 375 100 %Total 1,0 year 10 988 000 95 %

DESKTOP FORECAST

2014E 2015EGross rent 10 988 000 11 152 820Ownership cost 3,50 % -384 580 -390 349Net rent 10 603 420 10 762 471Asset/Corp. management -524 555 -532 423Net rent 10 078 865 10 230 048Net Interest -6 040 252 -5 880 826Tax estimate -606 561 -693 532Installments -2 100 000 -2 100 000Estimated cash-fl ow 1 332 052 1 555 690Estimated cash-fl ow in % of paid-in-equity 3,6 % 4,2 %

VALUE (BASIS FORECAST 2014 )

Yield sensitivity 8,00 % 8,25 % 8,50 %Estimated real estate value 134 530 891 130 454 198 126 617 309Estimated development value 0 0 0Tax disadvantage 10% -7 272 280 -6 864 611 -6 480 922Net debt (incl. cash and receivables) -76 587 000 -76 587 000 -76 587 000NAV 50 671 611 47 002 587 43 549 387 Estimated value fi xed interest rate -961 253 -961 253 -961 253NAV incl fi xed interest rate 49 710 358 46 041 334 42 588 134NAV incl fi xed interest rate per share 12,56 11,64 10,76Number of shares 3 956 964 3 956 964 3 956 964 Real estate value per square meter 11 621 11 268 10 937Implied leverage 61 % 62 % 64 %


CONTACTSRS PLATOU REAL ESTATE AS

Stian NicolausManaging PartnerDir. tel.: +47 23 11 26 72 Mobile: +47 95 48 60 [email protected]

Hans Martin HaugSenior PartnerDir. tel.: +47 23 11 26 71Mobile: +47 90 06 69 [email protected]

Pål SandalPartnerDir. tel.: +47 23 11 26 73Mobile: +47 93 88 00 [email protected]

Dag StraumeSenior AdvisorMobile: +47 90 50 77 [email protected]

RS PLATOU PROPERTY MANAGEMENT AS

Tom BøhlerManaging Partner Dir. tel.: +47 23 11 26 74Mobile: +47 90 66 11 [email protected]

� omas ØdegårdManaging DirectorDir. tel.: +47 23 11 26 62Mobile: +47 91 33 11 [email protected]

Axel OlsenFacility ManagerDir. tel.: +47 23 11 29 20Mobile: +47 97 66 39 [email protected]

ØSTENSJØVEIEN 27 HOLDING AS

COMMENTS



Name Østensjøveien 27 Holding ASAddress co/ RS Platou Property Management AS Founded December 2013Property location Østensjøveien 27Segment Offi ceLot 5 083Building area 16 091Year of Construction 2013Tax Value (estimated) 320 000 000Estimated net cash and receivables 9 030 000Shareholder tax value as of 30.06.2014 0

KEY POINTS

Initial yield 6,4 %Running yield 6,4 %Date of total initial payment November 2013Real estate purchase price (project price) 457 500 000Paid in equity 131 000 000Paid out equity 0Estimated IRR 12,40 %Realized IRR N/AUncalled capital 0Gross rent per square meter incl. parking 1 866

FINANCING

Bank: Balance Date RateFloating 136 812 500 01.07.14 1,73 %5Y fi xed 136 812 500 01.10.18 2,37 %Margin 1,79 %Estimated interest rate incl. margin 3,81 % Bond: Balance Date RateFloating 51 000 000 17.06.14 1,72 %Margin 4,00 %Estimated interest rate incl. margin 5,72 %Total 324 625 000

TRADING OF SHARES


Østensjøveien 27 is a state-of-the-art offi ce building nominated as one of the worlds best Innovative Green Buildings at MIPIM 2014. The building was completed for the tenants possession ultimo december 2013. The fi nal completion, including fi nalizing of outdoor area, is estimated to 30. June 2014. So far, all progression is accoridng to plans and timetable.

In the beginning og 2014 there was still approximately 460 sqm offi ce space vacant and some areas of wearhousing in the basement. The vacant offi ce space is rented out to Akelius on a 5 year agreement with an 5 option on equal terms. The leaseagreement should be signed in the beginning of June.

TENANTS 2014

Name Average duration Gross rent IndexNCC Construction AS 17 964 438 100 %AS Norsk Dentaldepot AS 4 376 912 100 %Wifa AS 2 466 631 100 %Mysof AS 2 189 250 100 %NCC Property Development AS - Rental Guarantee (Empty premises) 1 585 334 100 %Constructor Norge AS 1 209 235 100 %NCC Porperty Development AS 233 200 100 %Total 9,5 years 30 025 000 322 130 %


2014E 2015E 2016EGross rent 30 025 000 30 625 500 31 238 010Ownership cost -901 000 -919 020 -937 400Net rent 29 124 000 29 706 480 30 300 610Asset/Corp. management -450 000 -459 000 -468 180Net rent 28 674 000 29 247 480 29 832 430Net interest -13 820 000 -13 498 000 -13 407 000Tax estimate N/A N/A N/AInstallments -2 750 000 -2 750 000 -2 750 000Estimated cash-fl ow 12 104 000 12 999 480 13 675 430Estimated cash-fl ow in % of paid-in-equity 9,2 % 9,9 % 10,4 %


Yield sensitivity 6,30 % 6,40 % 6,50 %Estimated real estate value 471 531 429 464 163 750 457 022 769Estimated development value 0 0 0Tax disadvantage (7,0%) -10 607 200 -10 091 463 -9 591 594Net debt (incl. cash and receivables) -315 595 000 -315 595 000 -315 595 000NAV 145 329 229 138 477 288 131 836 175 Estimated value fi xed interest rate 0 0 0NAV incl fi xed interest rate 145 329 229 138 477 288 131 836 175NAV incl fi xed interest rate per share 1 453 292 1 384 773 1 318 362Number of shares 100 100 100 Real estate value per square meter 29 304 28 846 28 402Implied leverage 68 % 70 % 71 %


MARKET REPORT - Clarksons Report 2014 Proj… · PROLOGUE PROLOGUE Dear Investors and Business Associates, RS Platou Finans Shipping / RS Platou Project Finance is celebrating 10

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