Concordia Maritime

Interim / Quarterly Report • Oct 27, 2010

INTERIM REPORT 1 JANUARY –30 SEPTEMBER 2010

	3d quarter		9 months (Jan–Sep)	Full year
	2010	2009	2010	2009	2009
Net turnover, SEK million	127.9	147.3	367.9	488.1	599.3
Result after tax, SEK million		17.7 –135.2	61.5	–111.3	–81.1
Result per share, SEK		0.37 –2.83	1.29	–2.33	–1.70
EBITDA, USD million	7.5	3.6	22.2	15.1	21.0
Available liquid funds*,
SEK million		653.0 585.4	653.0	585.4	536.0

* Including unutilised credit facilities

• • Forecast for 2010 unchanged: A result before tax of USD 9.5 million (approx. SEK 70.0 million)
• • Continued satisfactory available liquid funds, SEK 653 million
• • Delivery of Stena Penguin in October
• • Continuing weak market

This information is provided in accordance with the Swedish Securities Exchange and Clearing Operations Act and/ or the Financial Instruments Trading Act. The information was made public on 27 October 2010 at about 14:00.

THIS IS CONCORDIA MARITIME

Concordia Maritime is an international tanker shipping company, which develops, builds, mans and charters vessels to customers with exacting demands on transport economy, flexibility and safety. The company's focus is on cost-effective and safe transportation of refined petroleum products such as petrol, diesel fuel and jet fuel.

Concordia Maritime was established in 1984 and its Series B share is listed on the NASDAQ OMX Nordic Exchange in Stockholm. Its head office is located in Gothenburg, Sweden.

BUSINESS CONCEPT

To provide the customers with safe and cost-efficient tanker transportation based on innovation and performance.

VISION

To be the customers' first choice for safe, innovative and efficient tanker transportation, which will result in good profitability, steady growth and financial stability.

OUR BUSINESS MODEL

Concordia Maritime's business and revenue model consists of furnishing vessels to customers in need of safe and costeffective transportation of oil and petroleum products. Revenues are generated mainly by chartering out vessels (spot market or time charters), profit-sharing clauses in charters and the sale of ships. Costs are kept under control by means of long-term maintenance, efficient manning and control over capital costs.

OUR CUSTOMERS

e customers include some of the world's largest oil and energy companies. Customer relations are characterised by partnership, cooperation and a long-term perspective.

OUR COOPERATION PARTNERS

Concordia Maritime conducts its business activities in close cooperation with several companies in the Stena Sphere. #is means that the company's business activities can be conducted cost-effectively at the same time as its customers have access to the Stena Sphere's knowledge base.

WHAT WE TRANSPORT

e change in business activities implemented in recent years has resulted in a shift in focus from the transportation of crude oil to the transportation of refined petroleum products. #e 12 producttankers (P-MAX and Panamax) ordered in the last few years, and which are now delivered and will be delivered, are all designed primarily to transport refined petroleum products. #e fleet also includes two Suezmax tankers (one chartered and one due to be delivered in the second quarter of 2012), which are mainly intended for the transportation of crude oil.

FINANCIAL OBJECTIVES

Growth At least 10% per year, while maintaining profitability Profitability Return on equity of at least 12% Equity ratio At least 50% over a business cycle

CONTENTS

President's views	3
Business activities	4
The market	6
Financial summary	8
Other information	10
Financial reports	13

PRESIDENT'S VIEWS STABLE POSITION IN A WEAK MARKET

Yet another quarter with business activities and results according to plan is now at an end. The result before tax was SEK 18.8 (–135.0) million and EBITDA SEK 54.2 (25.8) million.

Comments on the result

Generally speaking, the tanker markets continued to be weak in all the segments. Once again, it can be noted that although the demand for transportation of oil is growing, the growth in the number of tankers doing the transporting is greater.

Freight rates for product tankers (MR) rose somewhat compared with the previous quarter, both on the open market and the time charter market, although from very low levels. For Suezmax tankers, the trend was the opposite, i.e. freight rates dropped sharply.

e whole of our owned product tanker fleet is signed to long-term charters, which means that despite the market situation, we are doing well. #e freight rates in the charters for the P-MAX and Panamax tankers continued to be far higher than on the open market. On average, the charters have generated just over USD 20,000 per day, which can be compared with around USD 8,000 per day for MR tankers on the open market.

e low rates for Suezmax tankers affected the revenue generated by the chartered tanker Yasa Scorpion. Up until the end of the quarter, the charter in which we have a 50 percent share generated a small surplus.

e trend of the result and EBITDA is thus in line with our forecast.

Future prospects

e market situation continues to be challenging and 2010 will prove to have been yet another weak year for the world's tanker shipping companies. Companies in a weak financial position and with large exposure to the open market could face liquidity problems. #ere are also companies in the sector with strong finances and a balance between charters and exposure to the market that will manage better – and from this perspective, Concordia Maritime is in a very good position with all its owned fleet signed to charters.

With global economic growth rising, the demand for oil in 2011 is expected to be back at the same levels as before the sharp downturn in 2008/2009. A higher demand for oil will increase the demand for tanker transportation. #e growth of the tanker fleet will decrease but is still expected to be larger than the growth in demand, thus indicating a continuing weak market.

ere are, however, factors that are difficult to assess and that could result in the growth in demand for oil transportation being underestimated. One of these factors is the expansion of refinery capacity in progress, particularly in India and China, and the stagnant refinery industry in Europe and North America. #is could result in interesting changes in transport patterns and thereby increase the demand for transportation considerably.

Forecast for 2010

e forecast for 2010 remains unchanged. Our assessment is that in the financial year 2010, Concordia Maritime will achieve a result before tax of approx. USD 9.5 million, corresponding to approx. SEK 70 million.

Key ratios		9 months
	2010	2009	2009
Result after tax, MSEK	61.5	–111.3	–81.1
EBITDA, MSEK	163.5	119.0	160.8
Disposable liquid funds including unutilised credit facilities , MSEK	653.0	585.4	536.0
Result per share after tax, SEK	1.29	–2.33	–1.70
EBITDA per share, SEK	3.42	2.49	3.37
Dividend per share, SEK	1.00	1.00	1.00
Equity per share, including dividend, SEK	35.58	36.62	37.47
Equity ratio, %	52	53	53
Equity growth, including dividend, %	–5	–11	–9
Return on equity,including dividend, %	3	–8	–4

BUSINESS ACTIVITIES

The product tankers in the fleet are all signed to long-term charters while the Suezmax tanker operates in the open market. During the third quarter, the vessels continued to operate according to plan and generated revenues far exceeding the freight rates on the spot market.

IFRS 8 regarding segment reporting has been applied since 1 January 2009. IFRS 8 is a disclosure standard that defines what an operating segment is.

As of the third quarter of 2010, Concordia Maritime's management and board follow up the economic trend of the fleet as a unit. As a result, the two previous segments Product tankers and Large tankers in the financial reporting have been merged into a single segment – Tankers. However, the trend of the product tankers and the large tankers will continue to be reported in the running text.

Product tankers (P-MAX and Panamax)

During the quarter, Concordia Maritime's product tanker fleet consisted of eight wholly owned P-MAX tankers and two part-owned Panamax tankers. All the vessels were signed to charters of between three and ten years on delivery. #e P-MAX tankers operate in different geographical markets all over the world, transporting both light (e.g. petrol) and heavy petroleum products (e.g. heavy oil) as well as crude oil.

e two Panamax tankers Stena Poseidon and Palva, which are owned by Concordia Maritime via a joint venture with Neste Shipping, continued to sail for Neste in transatlantic traffic. #e Palva was drydocked during the period although the impact of this on the result was only marginal.

Result for the period

Product tankers report an EBITDA of USD 23.6 (18.4) million accumulated for 2010.

Large tankers (Suezmax)

During the third quarter, the large-tanker segment consisted of the Suezmax tanker Yasa Scorpion, which has been chartered together with Stena Bulk since May 2010. #e charter runs for one year, until May 2011.

Result for the period

Large tankers report an EBITDA of USD –0.2 million (–2.3, explained by a damage to the chartered vessel Stena Victory) accumulated for 2010.

Newbuilding program

e newbuilding program currently consists of three vessels on order, two P-MAX tankers and one Suezmax tanker. #e Stena Penguin, which was named during the quarter, was delivered in mid-October 2010. Her sister, the Stena Premium, has been delayed a couple of weeks and will thus be delivered at the beginning of the second quarter of 2011 instead of at the end of the first quarter.

e Suezmax tanker ordered in the first quarter of 2010 is expected to be delivered in the second quarter of 2012.

The product fleet's average freight rate per vessel and day

The graph shows the trend of the spot market, the base hire for Concordia Maritime's product tanker fleet and the actual revenues. The figures for the fleet are based on full employment, i.e. the base hire for the fleet is adjusted downwards to reflect any off hire.

CLOSE CUSTOMER RELATIONS

All product tankers in the fleet are currently signed to longterm charters, which provide financial stability thus making possible long-term investments.

Segment reporting, Q3, 2010 (Jan–Sep)

Assets	3,077.7	207.6	3,285.3
EBITDA	172.9	–9.4	163.5
Distribution of OH3)	–15.6	–9.4	–25.0
Costs 2)	–179.4		–179.4
Turnover 1)	367.9		367.9
SEK million	Tankers	Others	Total

1) Approx. 1,5 per cent of the accumulated turnover is related to profitsharing clauses.

• 2) The company reports depreciation of periodic maintenance (drydocking) as operating costs related to ships. For 2010, these costs amounted to SEK 4,5 million. For more information, see the annual report for 2009.
• 3) The distribution of the portion of personnel costs and other external costs not directly related to ship operation, so-called overhead costs.

Revenues by geographical segment

	9 months (Jan–Sep)
SEK million	2010	2009
USA	45.1	48.0
France	150.5	111.9
Rest of world	172.3	328.2
Total revenues	367.9 488.1

THE MARKET

The tanker market continued to be weak during the quarter. A seasonal downturn placed further pressure on the market. In the MR segment, freight rates increased somewhat while the rates in the Suezmax segment fell sharply.

How the freight market developed Third quarter, 2010

Product tanker market (MR) ‹

During the quarter, the average freight rates for an MR product tanker on the spot market were about USD 10,000 per day, higher than in both the second quarter and the corresponding quarter in 2009. It should, however, be emphasised that the increase was from very low levels. On the time-charter market, 3-year charter contracts were signed at levels of around USD 15,000 per day at the end of the period.

Large tanker market (Suezmax) ‹

e freight rates for Suezmax tankers fell sharply during the quarter. #e average freight rate was USD 17,000 per day, a 50 per cent drop compared with the previous quarter. #e timecharter market continued to be more stable and 3-year charter contracts were signed at levels of around USD 30,000 per day at the end of the period.

Newbuilding prices ‹

Newbuilding prices remained, in principle, unchanged. #e price of a newly built standard MR tanker was about USD 36 million and in the Suezmax segment, prices were in the region of USD 65 million.

Quarterly summary

Second quarter, 2010

Product tanker market (MR) ‹

e average freight rates on the spot market during the quarter were around USD 8,000 per day, the same as in the corresponding period in 2009 but about 35 per cent lower than in the first quarter of 2010. On the time-charter market, 3-year charter contracts were signed at levels of around USD 14,000 per day at the end of the period.

Large tanker market (Suezmax) ‹

e trend in the Suezmax segment was volatile. In May, the freight rates on the spot market rose sharply but subsequently fell again. #e average freight rates on the spot market during the quarter were around USD 32,000 per day, about 60 per cent higher than the average for 2009.

First quarter, 2010

Product tanker market (MR) ‹

e average freight rates on the spot market during the quarter were around USD 9,000 per day, about 30 per cent lower compared with the corresponding period in 2009. On the time-charter market, 3-year charter contracts were signed at levels of around USD 14,000 per day at the end of the period, also substantially lower than in 2009.

Large tanker market (Suezmax) ‹

After a sharp downturn in 2009, the market recorded a strong recovery in the first quarter of 2010, driven in part by a rising demand for crude oil. #e average freight rates on the spot market during the quarter were around USD 35,000 per day, about 35 per cent higher than the average for 2009.

Fourth quarter, 2009

Product tanker market (MR) ‹

e average freight rate on the spot market during the quarter was around USD 8,000 per day, which can be compared with freight rates of around USD 25,000 per day during the same period in 2008. On the time-charter market, 3-year charter contracts were signed at levels of around USD 11,000 per day, about 50 per cent lower than in 2008.

The freight rates on both the spot and the time-charter market continued to be at low levels during the quarter. They were, however, higher than during the corresponding quarter in 2009.

Time charter – MR (product tanker)

Jan Mar May Jul Sep Nov ²⁰⁰⁹ 2010 12,000 6,000 0 18,000 USD/day Source: Fearnleys 10,000 5,000 0 15,000 USD/day

Spot – MR (product tanker)

The freight rates for Suezmax tankers fell sharply during the third quarter. They fell most in August after which they recov-

ered somewhat.

All the graphs on this page show the average value per month.

During the quarter, the prices of Newbuilding prices – MR (product tanker) Newbuilding prices – Suezmax

2010 Källa: Platou

Source: Fearnleys

FINANCIAL SUMMARY

Turnover and result

Third quarter, 2010

Turnover during the third quarter amounted to SEK 127.9 (147.3) million. #e result after financial items was SEK 18.8 (–135.0) million. #e result after tax was SEK 17.7 million (–135.2 which includes a loss of –151.0 on sales of shares), which corresponds to a result per share of SEK 0.37 (–2.83).

January – September 2010

Turnover during the first nine months of the year amounted to SEK 367.9 (488.1) million. #e result after financial items was SEK 59.0 (–109.6) million. #e result after tax was SEK 61.5 (–111.3) million, which corresponds to a result per share of SEK 1.29 (–2.33) after tax. #e turnover and earnings trend are in line with the forecast.

Equity

Equity per share is SEK 35.58 (36.62). #e group's equity is denominated in US dollars and decreased during the third quarter due to the SEK/USD exchange rate having fallen from 7.75 at the beginning of the quarter to 6.77 at the end

of the period. #e decrease has been countered by the parent company's equity hedge, which generated a surplus of SEK 100.7 (104.9) million.

Totally, equity decreased SEK –42.3 (–171.4) million in the first nine months, corresponding to SEK –0.89 (–3.59) per share. #e accumulated exchange rate differences, including the effects of hedging, recorded directly to equity, amount to SEK 51.0 (104.4) million. #e changes are reported in equity via "Other total comprehensive income".

Changes in translation and hedging reserves

e Group's functional currency is the US dollar, i.e. the majority of the income and costs as well as the balance sheet are nominally in USD. #e company's result is generated in USD, which means that the result in SEK is a direct function of the trend of the SEK/USD exchange rate.

In February 2009, Concordia Maritime re-entered into a so-called equity hedge amounting to about 50 per cent of the equity in its foreign subsidiaries, corresponding to USD 125 million. #is equity hedge resulted in a result of SEK 100.7 million after tax during the third quarter of 2010,

Exchange rate differences against Other total comprehensive income

As a result of the trend of the SEK/USD exchange rate in 2010, the company's profit in SEK has changed despite the fact that in USD it has remained unchanged. Read more in "Changes in translation and hedging reserves" about how the company protects itself against currency and interest rate fluctuations.

FINANCIAL SUMMARY (CONT.)

which is recorded in "Other total comprehensive income". In conjunction with the order for four P-MAX tankers, a cash flow hedge, USD against EUR, was entered into for future payments to the shipyard. #e realised result is reported as "Ships under construction". #e changes in value of existing contracts are recorded directly to equity under "Hedge reserve" via "Other total comprehensive income".

e change in value during the period, including exchange rate changes, amounts to SEK 0.8 (–2.8) million.

In 2009, the company entered into additional interest hedges corresponding to USD 100 million in order to protect itself against interest fluctuations. At the end of the third quarter, the interest hedges amounted to a total of USD 140 million. #ese interest hedges are structured in such a way as to cover about 60 per cent of anticipated future borrowing within existing credit facilities and expire in 2015. At the end of the third quarter, these contracts were valued at SEK –43.5 (9.7) million, which is recorded to equity under "Hedge reserve" via "Other total comprehensive income". On 30-09-2010, the hedge reserve amounted to SEK –38.5 (7.1) million.

Liquidity and financial position

e Group's disposable liquid funds, including unutilised credit facilities, amounted to SEK 653.0 (585.4) million on 30-09-2010. Interest-bearing liabilities during the period decreased from SEK 1,458.5 million to SEK 1,430.0 million. On the accounting date, equity amounted to SEK 1,698.3 (1,747.9) million and the equity ratio was 52 (53) percent.

Investments

Accumulated investments during the period amounted to SEK 58.0 (307.1) million and are related to deliveries of ships, advance payments and project costs.

Seasonal variations

e fact that Concordia Maritime's vessels are chartered out on long-term contracts counteracts the seasonal variations that otherwise characterise tanker shipping.

Employees and option programs

On 31-12-2009, the Group had 234 (175) employees, including 229 (170) seagoing employees. #ere are no option programs.

Investments

Part of the company's bond portfolio was sold during the quarter. As a result of this, the bond portfolio is classified as "for sale" as of Q3, which means that it is valued at its market value via "Other total comprehensive income". Other investments are classified as previously, i.e. "held for trading". Here, excess liquidity has been invested in a portfolio with a due-date structure that corresponds well with the investment program. #ese securities provide a return of 7–8 per cent (also called purchase yield). #e nominal and market value of the bond holding is shown in the table below.

Other holdings (primarily mutual funds) are valued at their market value on each accounting date. Total short term investments amounted to SEK 84.3 (36.7) million.

Parent company

e Parent Company's turnover totalled SEK 11.5 (31.5) million. Intergroup invoicing accounted for SEK 0.0 (0.0) million of this amount. #e result after financial items was SEK 40.6 (228.5) million. #e Parent Company's available liquid funds, including unutilised credit facilities, amounted to SEK 1,660.3 (1,430.5) million.

Other events

At the annual general meeting for the fiscal year 2009 it was decided, in accordance with a proposal presented earlier, that the dividend distributed to the shareholders would be SEK 1.00 (1.00) per share.

Bond holding

Holding (MUSD)	Nominal value		Book value Market value
DDI Holding	9.3	9.2	9.2

O T H E R I N F O R M AT I O N

R e l a t e d c o m p a n y t r a n s a c t i o n s

C o n c o r d i a M a r i t i m e h a s a s m a l l o r g a n i s a t i o n a n d p u r c h a s e s s e r v i c e s fr o m c o m p a n i e s i n t h e S t e n a S p h e r e , i n c l u d i n g S t e n a B u l k , w h i c h c o n d u c t s s i m i l a r t a n k e r b u s i n e s s . A c c o r d i n g l y, t h e r e i s a n a g r e e m e n t , w h i c h r e g u l a t e s t h e r e l a t i o n s h i p b e t w e e n t h e t w o c o m p a n i e s w i t h r e s p e c t t o n e w b u s i n e s s . A c c o r d i n g t o t h e t e r m s o f t h i s a g r e e m e n t , C o n c o r d i a M a r i t i m e h a s t h e r i g h t t o c h o o s e w h e t h e r i t w i s h e s t o p a r t i c i p a t e 0 p e r c e n t , 5 0 p e r c e n t o r 1 0 0 p e r c e n t i n t h e d e a l i n q u e s t i o n . C o n c o r d i a M a r i t i m e p u r c h a s e s s e r v i c e s o n a r e g u l a r b a s i s fr o m t h e t h e S t e n a S p h e r e i n t h e fo l l o w i n g a r e a s :

• Ve s s e l c h a r t e r . P ay m e n t i s b a s e d o n a c o m m i s s i o n o f 1 . 2 5 p e r c e n t o n fr e i g h t r a t e s .
• C o m m i s s i o n o n t h e p u r c h a s e a n d s a l e o f v e s s e l s . P ay m e n t i s b a s e d o n a c o m m i s s i o n o f 1 p e r c e n t .
• O p e r a t i o n a n d m a n n i n g o f t h e G r o u p ' s v e s s e l s , s o c a l l e d s h i p m a n a g e m e n t . P ay m e n t i s b a s e d o n a fi x e d p r i c e p e r y e a r a n d v e s s e l .
• P u r c h a s e s o f b u n k e r o i l . P ay m e n t i s b a s e d o n a fi x e d c o m m i s s i o n p e r t o n p u r c h a s e d .
• A d m i n i s t r a t i o n , m a r k e t i n g , i n s u r a n c e , t e c h n i c a l fo l l o w u p a n d d e v e l o p m e n t o f C o n c o r d i a M a r i t i m e ' s fl e e t . P ay m e n t i s b a s e d o n a fi x e d p r i c e p e r m o n t h a n d v e s s e l . I n t h e c a s e o f t e c h n i c a l c o n s u l t i n g s e r v i c e s fo r n e w b u i l d i n g p r o j e c t s , a n h o u r l y r a t e i s c h a r g e d o n c u r r e n t a c c o u n t , w h i c h i s t h e n c h a r g e d t o t h e p r o j e c t .
• O ffi c e r e n t a n d o ffi c e s e r v i c e s . A fi x e d p r i c e p e r y e a r i s c h a r g e d .

A l l r e l a t e d c o m p a n y t r a n s a c t i o n s t a k e p l a c e o n c o m m e r c i a l t e r m s a n d a t m a r k e tr e l a t e d p r i c e s .

OTHER INFORMATION (CONT.)

Risks and uncertainty factors

Concordia Maritime is exposed to a number of different risks. #e foremost market-related risks that affect Concordia Maritime include the general economic climate, freight rates, the price of oil and political factors. Risks related to operational activities include ship management and insurance questions and employees. Additionally, Concordia Maritime is also exposed to credit and financial risks.

e management and board work actively to both minimise riskexposure and minimise the consequences and effects if a risk should nevertheless arise. Please refer to the annual report of 2009 for further information.

For the sake of clarity, the risks are presented in the format below. Please note, however, that the description does not claim to be complete or exact since the risks and their degree vary over time.

	Type of risk	Effect (1–5)	Probability (1–5)	Risk strategy
1. Corporate risks	A Brand	4 (4)	1 (1)	Quality at every stage. Far-reaching preventive work. A leader in safety.
	B Employees	4 (3)	2 (2)	Close collaboration with several companies in the Stena Sphere.
	CLiquidity	4 (4)	1 (1)	Stable cash flows as a result of long-term charters. Good bank connections.
	D Financing risk	4 (4)	2 (2)	Stable cash flows, high liquidity and equity ratio, and good bank connections.
2. Market related	A Economic trends	4 (4)	2 (3)	Customer relations to a large extent based on long-term charters.
risks	BFreight rates	4 (4)	3 (4)	Customer relations to a large extent based on long-term charters.
	C Oil price	4 (2)	3 (5)	The customer pays the cost of bunker oil.
	D Political risk	3 (2)	3 (2)	A market leader when it comes to safety and environmental work.
	E War and instability	3 (2)	3 (2)	The chosen contract strategy in combination with continuous business intelligence.
3. Opera tional risks	A Ship management and insurance issues	5 (5)	2 (2)	Continuous maintenance work in combination with comprehensive insurance cover.
	B Environment	5 (5)	2 (1)	Continuous work on preventive measures.
	CHigher personnel costs	3 (3)	3 (3)	Economic incentives in combination with a positive work environment and the possibility of long-term employment.
4. Credit risks	A Counterparty risks – customer	4 (3)	2 (2)	Financially stable customers. Close long-term collaboration.
	BCounterparty risks – shipyards and partners	4 (2)	2 (3)	Financially strong players. Bank guarantees and penalty clauses.

GROUP INCOME STATEMENT, OTHER TOTAL COMPREHENSIVE INCOME AND PER-SHARE DATA

SEK million	3d quarter 2010	3d quarter 2009	9 months 2010	9 months 2009	Full year 2009
Group income statement
Average exchange rate SEK/USD	7.27	7.25	7.35	7.86	7.65
Net sales	127.9	147.3	367.9	488.1	599.3
Total income	127.9	147.3	367.9	488.1	599.3
Operating costs, ships	–40.7	–91.4	–104.7	–280.5	–315.5
Seagoing personnel costs	–25.5	–22.2	–74.7	–63.5	–86.5
Other external costs	–5.4	–6.2	–17.8	–18.9	–27.7
Personnel costs	–2.1	–1.7	–7.2	–6.2	–8.8
Depreciation	–30.8	–21.3	–89.0	–68.0	–93.0
Total operating costs	–104.5	–142.8	–293.4	–437.1	–531.5
Operating result	23.4	4.5	74.5	51.0	67.8
Dividend		7.5		18.9	18.8
Interest income and similar items	1.5	2.8	9.6	12.3	15.0
Interest expenses and similar items	–10.1	–153.2	–28.7	–203.5	–205.2
Exchange rate differences	4.0	3.4	3.6	11.7	12.6
Financial net	–4.6	–139.5	–15.5	–160.6	–158.8
Result after financial net	18.8	–135.0	59.0	–109.6	–91.0
Tax	–1.1	–0.2	2.5	–1.7	9.9
Net result after tax	17.7	–135.2	61.5	–111.3	–81.1
Other total comprehensive income
Result for the period	17.7	–135.2	61.5	–111.3	–81.1
Exchange differences, net after tax	–258.0	–196.0	–107.7	–218.5	–177.7
Equity hedge, net after tax	100.7	104.9	43.9	193.8	163.4
Financial assets available for sale	5.4	118.9	5.4	–25.6	–25.6
Cash flow hedges, currency related	0.8	–2.8	2.1	–19.5	–30.9
Cash flow hedges, interest related	–5.1	–23.1	–47.5	9.7	20.9
Total comprehensive income	–138.5	–133.3	–42.3	–171.4	–131.0
Per-share data, SEK
Shares at end of period	47,729,798	47,729,798	47,729,798	47,729,798	47,729,798
Result per share before/after dilution	0.37	–2.83	1.29	–2.33	–1.70
Equity per share	35.58	36.62	35.58	36.62	37.47

GROUP SUMMARY OF BALANCE SHEET

SEK million	30 Sep 2010	30 Sep 2009	31 Dec 2009
Closing exchange rate SEK/USD	6.77	6.98	7.15
Assets
Ships and equipment	2,507.6	2,233.3	2,265.0
Ships under construction	482.1	493.7	619.0
Financial assets	8.5	187.8	141.0
Total fixed assets	2,998.2	2,914.8	3,025.0
Current receivables	141.8	254.9	226.8
Short term investment	84.3	36.7	37.1
Cash and bank balances	61.0	97.5	82.5
Total current assets	287.1	389.1	346.4
Total assets	3,285.3	3,303.9	3,371.4
Equity and liabilities
Equity	1,698.3	1,747.9	1,788.3
Long term liabilities	1,450.9	1,385.1	1,462.3
Short term provisions		6.3
Short term liabilities	136.1	164.6	118.9
Credit facility			1.9
Total equity and liabilities	3,285.3	3,303.9	3,371.4

GROUP SUMMARY OF CASH FLOW ANALYSIS

SEK million	3d quarter 2010	3d quarter 2009	9 months 2010	9 months 2009	Full year 2009
Cash flow from operations
Result after financial net	18.8	–135.0	59.0	–109.6	–91.0
Adjustment items:
Depreciation	34.1	28.0	96.8	80.5	110.7
Result, sale of financial assets		150.6		150.6	169.2
Other items	0.0	–2.9		24.0	0.7
Cash flow from operating activities before changes in working capital	52.9	40.7	155.8	145.5	189.6
Change in working capital	1.9	43.0	108.5	19.1	36.1
Cash flow provided by operating activities	54.8	83.7	264.3	164.6	225.7
Cash flow from investing activities
Ships under construction	–58.0	–307.1	–381.1	–556.1	–655.8
Investments in financial assets		–0.3		–0.7	–0.8
Sale of financial assets	25.7	83.4	78.9	360.0	346.0
Cash flow provided by investing activities	–32.3	–224.0	–302.2	–196.8	–310.6
Cash flow from financing activities
New loan	0.0	276.3	286.9	388.7	458.5
Amortization of credit facility	–46.3	–109.6	–226.8	–239.3	–270.2
Dividend	0.0	0.0	–47.7	–47.7	–47.7
Other financing	0.0
Cash flow provided by financing activities	–46.3	166.7	12.4	101.7	140.6
Cash flow for period	–23.8	26.4	–25.5	69.5	55.7
Balance at beginning of period (Note 1)	79.5	75.4	82.5	31.3	31.3
Exchange rate (Note 2)	5.2	–4.3	4.0	–3.3	–4.5
Balance at end of period (Note 1)	61.0	97.5	61.0	97.5	82.5
Note 1. Balance consists of cash, bank balances and credit facility
Note 2. Exchange rate difference relate to:
Balance at the beginning of year	2.5	–3.1	1.5	–2.2	–2.6
Cash flow for the period	2.7	–1.2	2.5	–1.1	–1.9
	5.2	–4.3	4.0	–3.3	–4.5

GROUP CHANGES IN EQUITY

Closing balance 30-09-2009	381.8	61.9	104.4	7.1	0.0	1,192.7	1,747.9
Dividend to shareholders						–47.7	–47.7
Total comprehensive income			–24.7	–9.8	–25.6	–111.3	–171.4
Opening balance 01-01-2009	381.8	61.9	129.1	16.9	25.6	1,351.7	1,967.0
Changes Jan–Sep 2009
Closing balance 30-09-2010	381.8	61.9	51.0	–38.5	5.4	1,236.7	1,698.3
Dividend to shareholders						–47.7	–47.7
Total comprehensive income			–63.8	–45.4	5.4	61.5	–42.3
Opening balance 01-01-2010	381.8	61.9	114.8	6.9	0.0	1,222.9	1,788.3
Changes Jan–Sep 2010
SEK million	Share capital	Other capital contributed	Translation reserve	Hedging reserve	Fair value reserve	Non restricted equity	Total

16 CONCORDIA MARITIME ^| INTERIM REPORT JAN–SEP ²⁰¹⁰

QUARTERLY OVERVIEW

	SEK million	Q3, 2010	Q2, 2010	Q1, 2010	Q4, 2009	Q3, 2009	Q2, 2009	Q1, 2009	Q4, 2008
Profit/loss	Net sales	127.9	132.7	107.3	111.2	147.3	162.5	178.3	168.1
items	Operating costs	–104.5	–106.0	–82.9	–94.4	–142.8	–141.2	–153.1	–140.0
	Operating result (EBIT)	23.4	26.7	24.4	16.8	4.5	21.3	25.2	28.1
	– of which profit/loss on ship sales
	Financial net	–4.6	–7.2	–3.7	1.8	–139.5	6.2	–27.3	0.8
	Result after financial items	18.8	19.5	20.7	18.6	–135	27.5	–2.1	28.9
	Result after tax	17.7	20.9	22.9	30.2	–135.2	23.5	0.4	40.0
	Cash flow from operating activities	52.9	53.1	49.8	44.1	40.7	48.6	56.2	70.4
	EBITDA	54.2	58.1	51.2	41.8	25.8	44	49.2	50.5
Balance-sheet	Ships (number of ships)	2,507.6 (9)	2,903.0 (9)	2,730.5 (9)	2,265 (8)	2,233.3 (8)	2,016.6 (7)	2,162.8 (7)	2,059.8 (7)
items	Ships under construction (number of ships)	482.1 (3)	494.9 (3)	442.1 (3)	619 (3)	493.7 (3)	735.8 (4)	646.3 (4)	536.3 (4)
	Liquid funds incl. investments	145.3	101.5	88.1	119.6	134.2	107.9	182.2	769.6
	Other assets	150.3	192.4	176.9	376.8	442.2	560.3	426.9	120.8
	Interest-bearing liabilities	1430.0	1,688.1	1,535.6	1,458.5	1,369.5	1,373.2	1,353.1	1,369.3
	Other liabilities and provisions	157.0	166.9	103.3	124.6	186.5	166.2	156.3	150.2
	Equity	1698.3	1,836.8	1,798.7	1,788.3	1,747.9	1,881.2	1,908.7	1,967.0
	Total assets	3285.3	3,691.8	3,437.6	3,371.4	3,303.9	3,420.6	3,418.1	3,486.5
Key ratios, %	Equity ratio	52	50	52	53	53	55	56	56
	Return on total capital	2	3	3	3	3	5	5	3
	Return on capital employed	2	3	4	3	3	5	5	3
	Return on equity	3	5	5	–4	–8	3	0	5
	Operating margin	18	20	23	15	3	14	14	17
Share data	Net sales	2.68	2.78	2.25	2.33	3.09	3.4	3.74	3.52
	Operating costs	–2.19	–2.22	–1.74	–1.98	–2.99	–2.96	–3.21	–2.93
	Operating result	0.49	0.56	0.51	0.35	0.09	0.45	0.53	0.59
	Financial net	–0.1	–0.15	–0.08	0.04	–2.92	0.13	–0.57	0.02
	Result after tax	0.37	0.44	0.48	0.63	–2.83	0.49	0.01	0.84
	Cash flow from operating activities	1.11	1.11	1.04	0.92	0.85	1.02	1.18	1.47
	EBITDA	1.14	1.22	1.07	0.88	0.54	0.92	1.03	1.06
	Equity	35.58	38.48	37.69	37.47	36.62	39.41	39.99	41.21

Please note that there has been no dilution effect since 2002. Definitions: see page 18

PARENT COMPANY INCOME STATEMENT AND BALANCE SHEET

SEK million	9 months 2010	9 months 2009
Net sales	11.5	31.5
Ships operating costs	–10.5	–9.9
Seagoing personnel costs		–11.0
Other external costs	–10.9	–10.7
Personnel costs	–5.3	–5.2
Depreciation		–9.3
Total operating result	–15.2	–14.6
Interest income and similar profit/loss items	83.0	275.9
Interest expenses and similar profit/loss items	–27.2	–32.8
Financial net	40.6	228.5
Tax	–10.2	–61.7
Net result after tax	30.5	166.8

SEK million	30 Sep 2010	30 Sep 2009
Assets
Ships and equipment	0.1
Financial assets	36.1	74.6
Shares in group companies	745.8	745.8
Total fixed assets	782.0	820.4
Current receivables	70.3	156.3
Short term investments	40.8	32.6
Cash and bank balances	1,068.3	942.6
Total current assets	1,179.4	1,131.5
Total assets	1,961.4	1,951.9
Equity and liabilities
Equity	678.8	719.4
Long term liabilities	1,214.9	1,149.7
Short term liabilities	67.7	82.8
Total equity and liabilities	1,961.4	1,951.9

DEFINITIONS

Cash flow from operating activities Result after net financial items plus depreciation minus tax paid (cash flow before change in working capital and investments and before effect of ship sales).

Return on total capital Result after net financial items plus financial expenses as a percentage of average balance sheet total.

Return on capital employed Result after net financial expenses as a percentage of average capital employed. Capital employed refers to the balance sheet total minus non interest-bearing liabilities, including deferred tax liability.

Return on equity Result for the year expressed as a percentage of average equity.

Equity ratio Equity expressed as a percentage of the balance sheet total.

GLOSSARY

Large tanker

Ship designed primarily to transport crude oil.

MR (Medium Range)

Product tanker with a deadweight tonnage (dwt) of 40,000–50,000.

Panamax

A product tanker of 55,000–75,000 dwt.

Product tanker

A ship designed primarily to transport refined petroleum products.

P-MAX

A ship type developed by Concordia Maritime with a dwt of 65,200.

Spot market (open market)

Where a ship is contracted for each individual voyage.

Suezmax

A large tanker of 120,000–165,000 dwt.

Time charter

The hire of a ship for a specified period at a fixed freight rate.

e Concordia Maritime group applies the International Financial Reporting Standards (IFRS), which have been approved by the EU Commission. #e Group applies the same accounting principles and calculation methods in its interim reports as in the annual report for 2009 in addition to what is stated in this report.

e Group's Interim Report has been drawn up in accordance with IAS 34. #e report for the Parent Company has been drawn up in accordance with the Swedish Annual Accounts Act and RFR 2.2.

is report presents a fair overview of the operations, financial position, and performance of the Parent Company and the Group and describes the essential risks and uncertainty factors faced by the Company and the Group.

is report has not been reviewed by the company's auditors.

Gothenburg 27 October 2010 Concordia Maritime AB (publ)

Hans Norén President

For further information concerning this interim report, please phone: Hans Norén, President, +46 704 855101 or Göran Hermansson, CFO, +46 704 855046

Reports and information 2010

Final Accounts 2010 22 februari 2011

IR contacts

Hans Norén, President +46 (0)31 855101 or +46 (0)704 855101 hans.noren@ concordia-maritime.se

Göran Hermansson, Chief Financial Officer +46 (0)31 855046 or +46 (0)704 855046 goran.hermansson@ concordia-maritime.se

The Final Accounts for 2010 will be published on 22 February 2011. Current and historical reports, together with news and comments on the company and the tanker markets, can be found on our web site www.concordia-maritime.se.

Concordia Maritime SE-405 19 Göteborg, Sweden Phone +46 (0)31 85 50 00 Reg. no. 556068-5819 www.concordia-maritime.se