WEAKER FIRST SEMESTER DUE TO DISAPPOINTING VLGC MARKET

The executive committee of EXMAR has reviewed the provisional results of the second quarter and the first semester 2007.

During the first six months of the current year, an operational result (EBIT) of USD 33.4 million was recorded (compared to USD 60.6 million for the first six months of 2006, including USD 10.0 million capital gain realised on the sale of vessels and
USD 11.0 million non-recurrent items).

The financial result incorporates the amelioration of the “fair value” of the financial instruments (IAS 32 & 39) of USD 3.2 million (USD 15.3 million as per 30 June 2006) as well as USD – 1.2 million reduction of the fair value and USD – 1.7 million exchange differences with respect to the EUR 50 million Convertible Bond.

The cash flow amounts to USD 39.1 million for the first six months 2007 (USD 52.3 million for the same period 2006).

LPG
During the first six months of the current year, an operational result (EBIT) of USD 14.8 million was recorded by the LPG fleet (compared to USD 32.9 million for the first six months of 2006, which included a profit of USD 10.0 million realised on the sale of
EXMAR’s 50% share in four Lady class vessels).

EBIT for the second quarter has been affected by 120 off-hire days incurred during the dry-docking of three Midsize vessels and one VLGC.

The Midsize segment remained firm during the second quarter despite several newbuilding deliveries and the absence of an active spot market for ammonia. LPG employment related to niche requirements East of Suez and West Africa as well as further petrochemical gas opportunities generated rewarding vessel employment. The prospects for the second Semester remain encouraging with approximately 70% of the Midsize fleet being covered at satisfactory levels.

Although nominal freights during the second quarter went up by as much as 38 % compared to the first Quarter, VLGC results did not improve accordingly, primarily due to rising bunker costs. Continued reduced cargo availability and comparatively high
product prices prevented a real freight recovery. It also increased pressure on older vessels and five units averaging 28.5 years have been sold for scrap since mid-March. Freight rates have improved recently and expectations are becoming somewhat more
favorable for the balance of the year however new export production streams are needed in order to structurally underpin VLGC demand.

With regard to the pressurised newbuilding programme, another four vessels have been ordered in Japan together with Hong Kong based owner, Wah Kwong. The list now includes seven 3,500 m³ and three 5,000 m³ with deliveries spread between fourth
Quarter 2008 and first Quarter 2010.

LNG
During the first six months of the current year, an operating result (EBIT) of USD 17.7 million was recorded by the LNG fleet (compared to USD 15.5 million for the first six months of 2006). The improvement is mainly due to the higher contribution of
EXCALIBUR under her long-term employment.

In April, an eighth LNGRV was ordered at DSME (Hull nr. 2272) for delivery in the second Semester 2010. Simultaneously, a partnership agreement was signed with Excelerate Energy who will participate in 1/3 ownership in Hull N°s. 2270 (EXQUISITE), 2271 (EXPEDIENT) and 2272 (EXEMPLAR). Several employment opportunities for these three vessels are actively being pursued.

As announced in a separate press release, EXMAR has filed today a “domain concession” for the construction of an LNG and High Pressure natural gas discharging and ship-to-ship transfer infrastructure in the port of Zeebrugge.

The results for the second Semester should remain in line with those of the first semester; however the off-hire as a result of the dry-docking of EXCALIBUR will have an effect.

OFFSHORE
The offshore activities contributed USD 2.3 million to the operating result of the first Semester 2007 (USD 3.7 million for the same period in 2006).

The construction of the OPTI-EX™ is progressing as planned and discussions on employment are still ongoing.

In May EXMAR signed a building contract for the construction of an accommodation barge for 350 persons at Cosco Shipyard Group (China) to be employed under a long-term contract in West Africa, in partnership with a local partner.

The operating result for the balance of the year is expected to remain in line with the first semester.

SERVICES AND HOLDING
The contribution of the service activities (EXMAR SHIPMANAGEMENT, BELGIBO, TRAVEL PLUS and Holding) to the operating results amounts to USD -1.4 million (compared to USD 8.5 million for the first semester 2006, including USD 11.0 million nonrecurrent items).

EXMAR SHIPMANAGEMENT has signed an agreement with Somers Shipping for the shipmanagement of two chemical tankers.

BELGIBO and TRAVEL PLUS are still growing and have seen an increase in turnover of respectively 15% and 7 % compared to previous year.

contact : Patrick DE BRABANDERE
􀂫+32 3 247 56 67
www.exmar.be

Publication of the final half year report : 28th September 2007

FULL DETAILS RELATING TO THE PRESS RELEASE ARE POSTED ON THE EXMAR WEBSITE www.exmar.be

EXMAR is a diversified and independent shipping group serving the international gas and oil industry. Apart from providing the ships for the transportation of these products, it also performs studies and undertakes the management of commercial, technical and administrative activities for the industry.

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This release was published on openPR.