President's View

During the period, the company’s activities proceeded smoothly and in line with expectations. All the vessels are signed to time charter contracts. These contracts generated higher revenues than in the open market for the third consecutive quarter. The product tanker segment generated an EBITDA*) of USD 7.0 (5.2) million in the first quarter.

The product tanker market continues to be weak, primarily due to a surplus of tonnage. The product tanker fleet is expected to continue to increase in size during the rest of 2008 as well as in 2009 and this will probably continue to exert downward pressure on freight rates. This market scenario has been anticipated by the company and was one of the main reasons for the company signing long-term contracts at an early stage.

The company’s large-tanker segment is proceeding according to plan and the vessels are performing well. As is the case in the product tanker segment, these vessels are signed to time-charter contracts. In the first quarter, the large-tanker segment generated an EBITDA of USD -0.4 (-2.8) million.