Fjord Defence Group ASA

Earnings Release • Nov 30, 2018

Songa Bulk ASA - Q3 2018

Songa Bulk ASA - Q3 2018

THIRD QUARTER 2018 FINANCIAL HIGHLIGHTS

- The Company reports net profit of $24.8 million in Q3 2018 compared to net loss of $3.2 million in Q2 2018. Net profit in Q3 2018 comprise of profit from discontinued operations of $24.8 million. The recognized gain from sale of vessels was $24.4 million.

THIRD QUARTER 2018 EVENTS

- On 6 July 2018, the Company delivered all its 15 vessels to Star Bulk Carriers Corp. (Star Bulk) against a consideration of 13 688 000 shares of Star Bulk and $144.55 million in cash. The cash proceeds were used to repay the bond loan at 104% of nominal value plus accrued interests.

- In connection with closing of the transaction the Board of Directors of the Company resolved to pay a dividend of $151 million. The dividend was considered repayment of paid in capital. On 13 July, 17 August and 14 September a total of 11 302 295 shares of Star Bulk were distributed to the shareholders. These distributions equal approximately $150.7 million of the resolved dividend of $151 million. The remaining amount of about $300 thousand will be distributed, mainly as distribution in kind, later upon receipt of representation and warranties letters from shareholders that did not yet submit such letter.

- On 29 August 2018 and 26 September 2018 a total of 1 647 377 shares of Star Bulk were distributed to the shareholders in connection with commencement of the share capital reduction resolved on 5 June 2018.

SUBSEQUENT EVENTS:

- In an extraordinary general meeting held on 3 October 2018 the shareholders resolved to distribute an extraordinary dividend of $10.4 million. On 17 October 2018 a total of 683 473 shares of Star Bulk were distributed to the shareholders. This number do not include the shares corresponding to a total of approximately $145 thousand withheld to cover withholding tax. The distribution equals approximately $10.2 million of the resolved dividend of $10.4 million. The remaining amount of about $200 thousand will be distributed, mainly as distribution in kind, later upon receipt of representation and warranties letters from shareholders that did not yet submit such letter.

- On 24 October 2018 a total of 7 617 shares of Star Bulk were distributed to the shareholders in connection with commencement of the share capital reduction resolved on 5 June 2018. This distribution, together with the distributions on 29 August 2018 and 26 September 2018, equal approximately $20.9 million of the resolved share capital reduction of $21 million. The remaining amount of about $100 thousand will be distributed, mainly as distribution in kind, later upon receipt of representation and warranties letters from shareholders that did not yet submit such letter.

- In a board meeting held on 27 November 2018, the Board of Directors of the Company resolved to pay a dividend of NOK 2.25 per share equalling a total distribution amount of approximately $9.5 million. The dividend distribution is subject to approval by the shareholders in an extraordinary general meeting to be held on 19 December 2018 with payment date 4 January 2019.