Fjord Defence Group ASA

Earnings Release • Feb 28, 2018

Songa Bulk 4th quarter 2017 Report

Songa Bulk 4th quarter 2017 Report

FOURTH QUARTER 2017 HIGHLIGHTS

The Company's (Songa Bulk ASA with subsidiaries) net result in Q4 2017 increased compared to Q3 2017 as the Company took delivery of three vessels in the current quarter and vessels were chartered out on higher time charter (TC) rates. The highlights below are a comparative summary of Q4 2017 versus Q3 2017.

- EBITDA was $6.7 million in Q4 2017, compared to $2.5 million in Q3 2017. Included in EBITDA for Q4 2017 is gain on sale of vessel, amounting to $2.0 million.

- Average time charter equivalent (TCE ) in Q4 2017 was $10 391 per day, compared to $9 069 per day in Q3 2017.

- Total time charter equivalent earnings1 were $12.2 million in Q4 2017, up from $8.1 million in Q3 2017.

- Net profit was $3.0 million ($0.085 per share) in Q4 2017, compared to a net loss of $0.7 million ($0.020 per share) in Q3 2017.

- Total operating days1 were 1 190 in Q4 2017, while operating days in Q3 2017 were 903.

- Net ship operating expenses (OPEX1) in Q4 2017 were $5 585 per day, compared to $5 178 per day in Q3 2017. For the full year 2017 OPEX were $5 294 per day.

- Cash break-even per vessel in Q4 2017, calculated on the basis of a fully delivered fleet of 15 vessels, was $7 505 per day.

- The Board of Directors will propose to pay a dividend of $0.10 per share, subject to approval by the shareholders in an extraordinary general meeting.