Summary of business activities

Product Tankers
During the period, a further 5-year time-charter agreement was signed with the French energy company TOTAL for the Stena Perros, which is expected to be delivered in the beginning of 2008. The other two vessels, the Stena Paris and the Stena Provence, which are on charter to TOTAL, have been in service since their delivery in December, 2005, and March, 2006, respectively. With the charter of the Stena Perros, Concordia Maritime has now secured employment for all six P-MAX tankers.

At the end of March, a newbuilding contract was signed for a further two P-MAX tankers with option on an additional two from the Brodosplit yard in Croatia. This contract is conditional on final approval by the boards of the company and the yard.

The product tanker segment also includes the two ice-strengthened Panamax tankers, which have been ordered in a joint venture with Neste Shipping. These vessels have been chartered to Neste Oil for ten years.

The newbuilding projects are proceeding according to plan. The third vessel in the P-MAX series, the Stena Primorsk, is expected to be delivered in mid May and the fourth, the Stena Performance, in June/July. Delivery of the first Panamax tanker, the Stena Polaris, is planned for the last quarter of 2006.

Large Tankers/VLCC
Concordia Maritime has time-chartered the two V-MAX VLCCs Stena Vision and Stena Victory since November, 2004. The charters expire at the end of 2009 after which Concordia Maritime has options on three 1-year extensions.

These two vessels have been on charter to the US oil company Sunoco since 2001. The present time charters expire in mid-2007, which means that Concordia Maritime will be exposed in the VLCC market from mid-2007 until the end of 2009.

As a result of the sale in 2004 of the V-MAX tankers to Arlington Tankers, Concordia Maritime has an undertaking relating to the operation of these vessels. The provisions made for this undertaking covered the actual costs during the first quarter.