Gulf Navigation Holding PJSC — Earnings Release 2012

Aug 14, 2012

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Press Release

Gulf Navigation Holding announces its 2nd quarter results for the year 2012

Continued improvement in financial performance in line with improving conditions within the shipping market

Dubai, 14[th] August 2012 - Gulf Navigation Holding PJSC (DFM: GULFNAV) one of the leading nonstate ship owning and maritime services company in the region has announced today its consolidated financial results for the first 6 months of 2012.

During the 2nd quarter the Company registered a net loss of AED 4.54M compared to a net loss of AED 7.83M for the 1st quarter of the year and a net loss of AED24.83m for the same period of 2011. The net loss for the first six months of 2012 was AED12.37M compared to a net loss of AED24.61M for the first half of 2011.

Net Operating Revenue for the 2[nd] quarter was AED 52.16M compared to AED 54.79M for the 1[st] quarter of the year. Operating profit before depreciation, finance costs and non operating items was AED 27.13M in the 2[nd] quarter compared to AED 24.70M for the 1[st] quarter of the year. The Company’s total assets as of 30[th] June 2012 stood at AED 2.39 Billion compared to AED2.51 Billion at 31[st] December 2011.

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Commenting on the results, Engineer Abdullah Al Shuraim, Chairman of Gulf Navigation described the performance in the second quarter as “very encouraging – and combined with the improvement seen in the 1[st] quarter we continue to see an upward trend in our financial performance”

“At Gulf Navigation we continue to believe that the shipping recovery will gather pace as we move through 2012 and into 2013 and with our vessel portfolio and chartering strategy we are well placed to benefit from these improved market conditions. In addition, with our stated 5-year strategy focusing on vessel expansion within the VLCC and Chemical Tanker segments Gulf Navigation will continue to make decisions that will position the company in the right place for when the cycle turns and the industry yet again offers attractive returns for our shareholders.”

Discussions continue with the VLCC Lenders in relation to a Reset Agreement previously signed which had reset the debt and cash covenants for a period from 24[th] November 2011 to 31[st] March 2013. Due to delays in receiving a significant element of the dues from the Estate of Atlas Shipping A/S, terms within the Reset Agreement could not be adhered to at 30[th] June 2012 and this has resulted in a breach of the terms of the Agreement.

Commenting on the situation with the Lenders, Engineer Abdullah Al Shuraim noted “although we are seeing significant improvements in our financial performance it is clear that we need to continue to work closely with our Lenders at this time – unfortunately the delay in receiving funds from the Atlas settlement has required us to re-negotiate commitments previously made to the Lenders”. “I stress that this is purely a timing issue and the expected receipt of the Atlas Estate funds in the 3[rd] quarter will allow us to adhere to the commitments made and remove the breach in time for the 3rd quarter financial statements”. Engineer Abdullah Al Shuraim also confirmed “it is important to state that all due loan instalments and interest payments are being made on a timely basis and there is no expectation that this will change in the future”.

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About Gulf Navigation Holding PJSC: Gulf Navigation Holding PJSC and its group companies own and operate crude and chemical tankers. It is an ISO 9001:2000 certified, Dubai-based and United Arab Emirates Holding Entity with operations worldwide. It leads the shipping and marine services industry in the region. It has 11 specialized subsidiaries and owns 12 tankers including new buildings, with 4 VLCC’s and 8 Chemical Tankers in addition to 4 crew boats. A total carrying capacity of approximately 1.6 million dwt. It is also the sole agency for a number of global marine manufacturers and the only maritime and shipping company listed on the Dubai Financial Market.

For more information

Abdul Aziz Dhiyab Al Abdulsalam Tel: +971-4-4270104 Mob: +971-50-5532130 aziz@gulfnav.com www.gulfnav.com