Saga Pure — Interim / Quarterly Report 2014

May 28, 2014

Q 1 201 4 REPORT

CONTENTS

FINANCIAL INFORMATION

Highlights > Consolidated condensed statement of comprehensive income > Consolidated condensed statement of financial position > Consolidated condensed cash flow statement > Consolidated condensed statement of changes in equity > Notes to the financial statements >

HIGHLIGHTS

KEY FIGURES

NOK 1000	Jan-Mar 2014 (unaudited)	Jan-Mar 2013 (unaudited)	Jan-Dec 2013 (audited)
Operating revenue	-317	312	3 334
Operating profit (-loss) before depreciation (EBITDA)	-1 941	-661	2 562
Operating profit/(-loss) (EBIT)	-1 941	-661	2 562
Net profit/(-loss)	- 1 782	-656	4 329
Total comprehensive income	-30 739	4 673	40 775
Basic and diluted earnings per share NOK	-0,02	-0,01	0,05

RESULTS

Saga Tankers group reports a net total comprehensive income for the first quarter 2014 of NOK -30.7 million.

EBITDA for the first quarter was NOK - 1.9 million.

Earnings per share (EPS) for the first quarter were NOK -0.02.

The average number of shares in the quarter was 86,777,409. As per the end of the period, the outstanding number of shares was 86,777,409.

The Group's condensed unaudited financial statements for the first quarter of 2014 are enclosed.

Current Investments

The Group currently holds investments in Prospector Offshore Drilling S.A and S.D Standard Drilling PLC, classified as assets held for sale. Changes in market value of NOK -29 million were booked as other comprehensive income in first quarter 2014. An impairment of 0.3 million for these investments were booked as negative operating profit. The groups shares in Vallhall Arena is classified as associated companies, and has for the first quarter booked a profit share net of depreciation of surplus value of NOK 0.5 million. The Group has a cash holding of NOK 100.9 million.

Future

The Group will continuously evaluate investment opportunities that may arise based on the present framework surrounding the industries in which it operates.

Whether the Group will invest in asset or equity depends on investment opportunities that may arise as well as the equity and funding market at the time being. The Company does not rule out investing in debt related instruments in industries in which the Company operates.

STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Matters discussed in this report may constitute forward looking statements. The forward looking statements in this report are based on various assumptions, many of which are based upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult to predict and beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.

Oslo, 27 May 2014

The Board of Directors

CONSOLIDATED CONDENSED STATEMENT OF COMPREHENSIVE INCOME

NOK 1000	Jan-Mar 2014	Jan-Mar 2013*	Jan-Dec 2013
	(Unaudited)	(Unaudited)	(Audited)
Other Income	-	312	58
Net gain / (-loss) from available for sale assets	-317	-	3 276
Operating revenues	-317	312	3 334
General administrative expenses	992	1 026	4 236
Depreciation (note 2)		-
Impairment	-
Operating expenses	992	1 026	4 236
Loss(-gain) sale fixed assets (note 2)	-	-53	-53
Operating profit/(-loss)	-1 309	-661	-847
Interest income	159	7	1 769
Interest expense	-	-2	-2
Other financial items	-1 163	-	2 336
Net financial items	-1 004	5	4 103
Share of profit from associates	531	-	1 074
Profit/(-loss) before tax	-1 782	-656	4 329
Taxes	-	-	-
Net profit / (-loss) for the year	-1 782	-656	4 329
Change in available-for-sale assets	-28 956	5 330	36 446
Other comprehensive income	-28 956	5 330	36 446
Total comprehensive income	-30 739	4 673	40 775
Basic and diluted earnings per share NOK	-0,02	-0,01	0,05
Average number of shares in the period	86 777 409	86 777 409	86 777 409
Number of shares outstanding at period end	86 777 409	86 777 409	86 777 409

* Restated from USD to NOK

CONSOLIDATED CONDENSED STATEMENT OF FINANCIAL POSITION

NOK 1000	31.03.2014	31.12.2013
	(Unaudited)	(Audited)
ASSETS
Non-current assets
Available-for-sale financial assets (note 4)	70 458	99 731
Investment in associates	15 605	15 074
Total non-current assets	86 063	114 805
Current assets
Other current assets	68	65
Cash and cash equivalents	100 710	102 864
Total Current assets	101 778	102 930
TOTAL ASSETS	186 841	217 735
EQUITY AND LIABILITIES
Equity
Share capital	86 777	86 777
Other Equity	883 696	883 696
Total paid-in-capital	970 473	970 473
Accumulated losses	-791 899	-790 117
Other components of equity	7 875	36 831
Total equity	186 449	217 187
Current liabilities
Other current liabilities and accruals	392	548
Total current liabilities	392	19 505
TOTAL EQUITY AND LIABILITIES	186 841	217 735

CONSOLIDATED CONDENSED CASH FLOW STATEMENT

	Jan-Dec
NOK 1000	2013	Jan-Mar 2013*	Jan-Dec 2013
	(Unaudited)	(Unaudited)	(Audited)
Profit before tax	-1 782	-656	4 329
Profit share from associates	-531	-	-1 074
Interest income	-	7	-
Impairment charge	317	-	17 523
Loss/(gain) sale fixed asset	-	-53	-53
Foreign exchange losses/(gains)	1 163	-	- 2 334
Increase/decrease receivables and prepayments	-3	-134	73
Increase/decrease payables and accruals	-156	-18 678	-18 957
Increase/decrease other provisions	-	-	-
Interest paid			-
Net cash flow from operating activities	-992	-19 514	-493
Investments in AFS assets	-	-30 276	-66 468
Divestment in AFS assets	-	-	20 308
Proceeds from sale of other fixed assets	-	331	331
		-
Net cash flow from investing activities	-	29 945	-45 829
Net cash flow from financing activities	-	-	-
Net change in cash and cash equivalents	-991	-49 459	-46 322
			-
Cash and cash equivalents at beginning of period	102 864	146 852	146 852
Cash and cash equivalents
at end of period	100 710	97 393	102 864
Net foreign exchange differences (unrealized)	-1 163	-	2 334

* Restated from USD to NOK

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Jan-Mar 2014 (unaudited)
				Available for
				sale	Exchange
				financial	difference
	Issued	Other	Accumulated	assets	currency
NOK 1000	capital	equity	losses	reserve	translations	Total
Equity as at 1 January 2014	86 777	883 696	-790 117	39 477	-2 648	217 187
Net profit/(-loss)	-	-	-1 782	-	-	-1 782
Other comprehensive
income	-	-	-	-28 956	-	-28 956
Total comprehensive income	-	-	-1 782	-28 956	-	-30 739
Equity per ending balance
31 March 2014	86 777	883 696	-791 899	10 523	-2 648	186 449

Jan-Dec 2013 (Audited)
				Available for
				sale	Exchange
				financial	difference
	Issued	Other	Accumulated	assets	currency
NOK 1000	capital	equity	losses	reserve	translations	Total
Equity as at 1 January 2013	86 777	883 696	-794 446	3 033	-2 648	176 411
Net profit/(-loss)	-	-	4 329	-		4 329
Other comprehensive				36 446	-
income	-	-	-			36 446
Total comprehensive income	-	-	4 329	36 446	-	40 775
Equity per ending balance
31 December 2013	86 777	883 696	-790 117	39 477	-2 648	217 187

NOTES

NOTE 1 – BASIS FOR PREPARATION

The Company's condensed interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as approved by the EU and requirements in the Norwegian Securities Trading Act. This condensed interim financial statement for the first quarter is adopted by the Board of Directors on 27 May 2014.

The accounting policies adopted in the preparation of the condensed interim financial statements are consistent with those presented in the Annual Report of 2013. Available for sale financial assets are measured at fair value. Changes in fair value are booked as other comprehensive income provided that no impairment is present.

Foreign currency

The financial statements are presented in NOK. NOK is also the functional currency for all the companies in the Group as of 1 January 2013.

NOTE 2 – OPERATING SEGMENTS

The Group is investing in financial instruments traded in active markets. These are further described in note 4.

For management purposes, the Company's business is not organized into separate operating segments and hence only has one reportable operating segment which is in line with the consolidated figures presented in this report. Group financing is also monitored on a Group basis.

NOTE 3 – SAGA AGNES CLAIM SUMMARY

As informed in the annual report for 2013, the Charterers of Saga Agnes AS has presented the Group with a claim of about USD 2 million related to the time charterparty for the vessel "Saga Agnes". The matter will most likely be resolved through arbitration. The Group has made no provisions for this claim as it is considered to be unsubstantiated.

NOTE 4 – AVAILABLE-FOR-SALE FINANCIAL ASSETS

	30 Mar	31 Dec
	2013	2013
At 1 January	99 731	34 648
Additions	-	46 160
Impairment	-317	-17 523
Change in available-for-sale financial assets	-28 956	36 446
Total	70 458	99 731
Available-for-sale financial assets include the following:
Fair value hierarchy	2014	2013
Listed shares Level 1	70 458	99 731
Total	70 458	99 731

The entire change in available-for-sale financial assets during the quarter relates to financial instruments that fall within the level 1 category of the fair value hierarchy. The fair value hierarchy is described below.

Fair value hierarchy

The group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

• Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.
• Level 2: other techniques for which all inputs that have a significant effect on the recorded fair value are observable, either directly or indirectly.
• Level 3: techniques that use inputs that have a significant effect on the recorded fair value that are not based on observable market data, for example discounted cash flow technique.

The financial assets are denominated in NOK and are measured at fair value. Listed shares are valued at values quoted in active markets as of 31.03.2014. Impairment of financial assets has been recognized trough the income statement.

NOTE 5 – 20 LARGEST INVESTORS

	NAME	03.04.2014
1	SPETALEN	96,55 %
2	KOLBERG MOTORS AS	0,31 %
3	NORDSTJERNEN AS	0,27 %
4	KOLBERG	0,27 %
5	SKIBSAKTIESELSKAPET ABACO	0,23 %
6	RAMS AS	0,18 %
7	JEBSEN	0,13 %
8	NISTUÅ II AS	0,12 %
9	GADD HOLDING	0,12 %
10	MYKLAND INVEST AS	0,12 %
11	NGUYEN	0,12 %
12	PAK INVEST AS	0,09 %
13	KRISTIAN HODNE AS	0,09 %
14	VOLDMO	0,08 %
15	INITIUM INVEST AS	0,07 %
16	NORDNET PENSJONSFORSIKRING	0,07 %
17	ARAMIS FLEKKEFJORD AS	0,06 %
18	BAKER KARLSEN EIENDOM AS	0,05 %
19	BUSINESSPARTNER AS	0,05 %
20	PEDRO EIENDOM	0,05 %
	TOTAL	99,03 %

SAGA TANKERS ASA Sjølyst Plass 2 0278 Oslo

INVESTOR RELATIONS Phone: +47 23 01 49 14 e-mail: management@sagatankers.no

www.sagatankers.com