Fjord Defence Group ASA

Songa Bulk AS reports 4th quarter 2016

FOURTH QUARTER 2016 RESULTS

The Group reports a loss before taxes of $1 164 809 and a loss

after taxes of $2 036 544 in the fourth quarter.

The operating loss in the fourth quarter was $860 730. The

fourth quarter of 2016 is the start-up quarter for the Company

and operating results are influenced by start-up costs and

limited active operations as the first vessel was delivered in

December 2016. An expense of $399 581 relates to issued

warrants to employees, which is a non-cash expense.

Net financial expenses was $304 080. The main item is a non-

cash financial expense of $326 930 related to warrants issued

to shareholders.

As a consequence of foreign exchange gain in NOK on bank

deposits denominated in USD, the Group reports an Income tax

expense of $871 734 of which $393 773 is payable.

Cash and bank deposits are $57.7 million. Net proceeds from

increase of capital was $72.8 million while $15.0 million were

used in investing in vessels.

Please find full report attached

For further information please contact

Herman Billung

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