Saga Pure — Interim / Quarterly Report 2016

May 27, 2016

Q 1 201 6 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 2016 Jan-Mar 2015 Jan-Dec 2015
	(unaudited)	(unaudited)	(unaudited)
Operating revenues	16 478	8 517	81 510
Operating proft (-loss) before depreciation (EBITDA)	10 960	7 821	15 204
Operating profit/(-loss) (EBIT)	10 229	7 169	12 565
Net profit/(-loss)	10 352	7 651	14 058
Total comprehensive income	-119 350	15 047	267 197
Value adjusted equity per share (NOK)*	2,85	2,14	3,26
Basic and diluted earnings per share NOK	0,03	0,04	0,07

* Value adjusted equity has been calculated through application of market value for assets and liabilities traded in quoted markets, and book value for other assets and liabilities.

RESULTS

Saga Tankers Group ("The Group") reports a net total comprehensive income for the first quarter 2016 of NOK -119.4 million.

EBITDA for the first quarter was NOK 11.0 million.

Earnings per share (EPS) for the first quarter were NOK 0.03.

The Group had an income of NOK 5.7 million related to lease and operation of real estate and sundry income, and a net gain of NOK 10.8 million from investments.

In February 2016 the Group purchased 7,000,000 of its own shares in the open market. Through this transaction the number of outstanding shares was reduced from 286,732,611 in the start of the quarter, to 279,732,611 at the end of the quarter. The average number of shares in the quarter was 284,399,278.

The Group's condensed unaudited financial statements for the first quarter of 2016 are enclosed.

Current Investments

The Group currently holds investments classified as financial assets available

for sale with a fair value of NOK 288.8 million. The fair value of the investments by the end of first quarter is as follows:

NEL ASA	NOK 151 million
Axactor AB	NOK 97 million
Vistin Pharma ASA	NOK 41 million

Net negative changes in market value of NOK 105.7 million for these investments were booked as other comprehensive income in first quarter 2016, while NOK 21.7 million former positive changes was reclassified to profit and loss due to partial realization of investment in Axactor AB. The largest changes in market value in the first quarter derives from ownership of 7.6% of NEL ASA with a negative change of NOK 98.1 million and a 7.9% share of Axactor AB with a negative change of NOK 6.6 million.

The Group has a cash holding of NOK 465.0 million at the end of first quarter.

Outlook

The Group has a solid investment portfolio and a strong balance sheet, enabling the company to continue to pursue attractive investment opportunities within the framework of industries it operates.

The Group expects the current market volatility to continue going forward, providing opportunities to create value through investments in assets, equity or debt.

Subsequent Events

Since the end of first quarter the Group has divested shares in Axactor AB and NEL ASA. Total proceeds from the sales were NOK 174 million. Further the Group has acquired 6% of the outstanding shares in Pareto Bank ASA.

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, 26 May 2016

The Board of Directors

CONSOLIDATED CONDENSED STATEMENT OF COMPREHENSIVE INCOME

NOK 1000	Jan-Mar 2016	Jan-Mar 2015	Jan-Dec 2015
	(unaudited)	(unaudited)	(audited)
Other Income	5 684	5 836	20 024
Net gain/(-loss) from avaliable for sale assets	10 794	2 680	-
Other gains/(-losses)	-	-	61 486
Operating revenues	16 478	8 517	81 510
General administrative expenses	4 802	5 587	26 511
Depreciation (note 5)	730	652	2 639
Net loss/(-gain) from avaliable for sale assets	-	-	27 677
Operating expenses	5 533	6 239	56 827
Operating profit/(-loss)	10 945	2 277	24 683
Interest income	575	1 074	3 652
Interest expense	-452	-592	-1 955
Other financial items	-133	4 891	-6 474
Net financial items	-10	5 373	-4 777
Share of profit from associates (note 3)	-583	-	-5 644
Taxes	-	-	203
Net profit/(-loss)	10 352	7 651	14 058
Change in avaliable-for-sale assets	-127 390	7 396	251 808
Exchange difference currency translations	-2 312	-	1 331
Other comprehensive income	-129 702	7 396	253 139
Total comprehensive income	-119 350	15 047	267 197
Attributable to:
Non-controlling interests	846	1 198	-5 801
Shareholders' interests	-120 196	13 849	272 998
Basic and diluted earnings per share NOK	0,03	0,04	0,07
Average number of shares in the period	284 399 278	175 833 728	286 732 611
Number of shares outstanding at period end	279 732 611	175 833 728	286 732 611

CONSOLIDATED CONDENSED STATEMENT OF FINANCIAL POSITION

NOK 1000	31.03.2016	31.12.2015
	(unaudited)	(audited)
ASSETS
Non-current assets
Avaliable-for-sale financial assets (note 4)	288 750	461 908
Fixed assets (note 5)	91 376	92 107
Associates (note 3)	35 248	38 143
Total non-current assets	415 375	592 158
Current assets
Other current assets	2 048	1 534
Cash and equivalents	464 959	426 606
Total current assets	467 006	428 140
TOTAL ASSETS	882 381	1 020 298
EQUITY AND LIABILITIES
Equity
Share capital	286 733	286 733
Own shares	-7 000	-
Other equity	914 514	924 814
Total paid-in-capital	1 194 246	1 211 547
Accumulated losses	-562 811	-572 317
Other components of equity	165 868	295 569
Non-controlling interests	26 957	26 112
Total equity	824 260	960 911
LIABILITIES
Non-current liabilities
Long-term interest bearing debt	49 000	50 000
Deferred tax	8 8	8 8
Total non-current liabilities	49 088	50 088
Current liabilities
Short-term interest bearing debt	4 000	4 000
Tax payable	2 7	4 9
Other current liabilities and accruals	5 006	5 250
Total current liabilities	9 033	9 299
Total liabilities	58 121	59 387
TOTAL EQUITY AND LIABILITIES	882 381	1 020 298

CONSOLIDATED CONDENSED CASH FLOW STATEMENT

NOK 1000	Jan-Mar 2016	Jan-Dec 2015
	(unaudited)	(Audited)
Profit before tax	10 352	14 261
Profitshare from associates	583	5 644
Depreciation (note 5)	730	2 639
Net loss/(-gain) from AVA asset	-10 794	27 677
Other losses/(-gains)	-	-61 486
Foreign exchange losses/(gains)	133	5 474
Income tax paid	-87	-108
Increase/decrease receivables and prepayments	-448	12 820
Increase/decrease payables and accruals	-245	485
Net cash flow from operating activities	225	7 406
Investment in AVA Financial assets	-8 900	-80 460
Divestment in AVA Financial assets	65 461	97 485
Net divestment/(-investment) trading	-	-13 762
Net cash effect new subsidiaries	-	267 741
Net cash effect disposal of subsidiaries	-	-156 947
Investement in fixed assets	-	-173
Net cash flow from investing activities	56 561	113 884
Repayments of long term borrowings	-1 000	-4 000
Dividends paid to non-controlling interests	-	-23 455
Aquisition of own shares	-17 300	-
Share issuance costs	-	-2
Net cash flow from financing activities	-18 300	-27 457
Net change in cash and cash equivalents	38 486	93 832
Cash and equivalents at beginning of period	426 606	297 729
Net cash in merger at carryover basis	-	35 106
Net foreign exchange differences (unrealised)	-133	-62
Cash and equivalents at end of period	464 959	426 606

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Jan-Mar2016 (Unaudited)
NOK 1000	Issued capital	Own shares	Other equity	Accumulated losses	Available for sale reserve	Exchange difference currency translations	Non controlling interests	Total
Equity as at 1 january 2016	286 733	-	924 814	-572 318	296 887	-1 317	26 112	960 911
Net profit/(-loss)	-	-	-	9 506			846	10 352
Other comprehensive
income	-	-	-		-127 390	-2 312		-129 702
Total comprehensive
income	-	-	-	9 506	-127 390	-2 312	846	-119 350
Aquired own shares		-7 000	-10 300	-	-	-	-	-17 300
Equity per ending balance
31 March 2016	286 733	-7 000	914 514	-562 811	169 497	-3 629	26 957	824 260
Jan-Dec 2015 (Audited)
	Issued	Own	Other	Accumulated	Available for sale	Exchange difference	Non controlling
NOK 1000	capital	shares	equity	losses	reserve	translations	interests	Total
Equity as at 1 january 2015	175 834	-	883 696	-694 519	-	-2 648	24 041	386 404
Net profit/(-loss)	-	-	-	19 859	-	-	-5 801	14 058
Other comprehensive
income	-	-	-	-	251 808	1 331	-	253 139
Total comprehensive
income	-	-	-	19 859	251 808	1 331	-5 801	267 197
Merger 1 january 2015	110 899	-	41 118	94 708	45 079	-	-	291 803
Shareholders costs	-	-	-	1 0	-	-	-	1 0
New minority interests	-	-	-		-	-	177 916	177 916
Aquired from minorities	-	-	-	7 625	-	-	-38 075	-30 450
Dividends to minority
interests	-	-	-	-	-	-	-23 455	-23 455
Exit minority interests	-	-	-	-	-	-	-108 513	-108 513
Equity per ending balance 31 December 2015	286 733	-	924 814	-572 318	296 887	-1 317	26 112	960 911

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 third quarter is adopted by the Board of Directors on 26 May 2016.

The accounting policies adopted in the preparation of the condensed interim financial statements are consistent with those presented in the Annual Report of 2015. 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 management monitors the net income from investments in financial assets and liabilities, and the revenues from lease and operation of property on a separate basis.

Segment information	Jan-Mar 2016	Jan-Mar 2015	Jan-Dec 2015
NOK 1000
Net income financial assets	10 794	2 680	-27 677
Revenues from lease and operation of property	5 384	5 836	18 032
Other income	300	-	1 993

NOTE 3 – ASSOCIATES

NOK 1000	SD Standard Drilling Plc
Carrying amount, 31 December 2015	38 143
Share of profit companies jan-mar 2016	-583
Currency exchange differences	-2 312
Carrying amount, 31 March 2016	35 248

NOTE 4 – AVAILABLE-FOR-SALE FINANCIAL ASSETS

		31 Mar 2016 31 Dec 2015
NOK 1000
At 1 January		461 908	53 158
Additions		8 900	80 460
Assets received through merger and demerger		-	219 607
Currency translations		-	9
Impairment		-	-18 488
Increase/(Decrease) in value recognized as other comprehensive income		-127 390	251 808
Reclassified as subsidiaries		-	-53 158
Reclassified from associates		-	21 423
Disposals		-54 668	-92 911
Total		288 751	461 908
Avaliable-for-sale financial assets include the following:
	Fair value hierarchy	31 Mar 2016 31 Dec 2015
Listed shares	Level 1	288 751	461 908

Total 288 751 461 908

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 March 2016. No impairment of financial assets has been recognized trough the income statement in 2016.

NOTE 5 – FIXED ASSETS

		Machinery &	Capitalized costs - work in
	Bulidings	equipement	progress	Land	Total
2016
NOK 1000
Aquisition cost, opening balance 01.01.16	91 529	4 319	3 8	199	96 084
Acquisitions during the period	-	-	-	-	-
Diposals during the period	-	-	-	-	-
Aquisition cost at 31.03.16	91 529	4 319	3 8	199	96 084
Accumulated depreciation, opening balance
01.01.16	-3 182	-796	-	-	-3 978
Depreciation	-637	-93	-	-	-730
Accumulated depreciation disposed assets	-	-	-	-	-
Accumulated depreciation at 31.03.16	-3 819	-889	-	-	-4 708
Net book value at 31.03.16	87 709	3 430	3 8	199	91 376

			Capitalized
		Machinery &	costs - work in
	Bulidings	equipement	progress	Land	Total
2015
NOK 1000
Aquisition cost, opening balance 01.01.15	91 529	4 146	3 8	199	95 911
Acquisitions during the period	-	189	-	-	189
Diposals during the period	-	-16	-	-	-16
Aquisition cost at 31.12.15	91 529	4 319	3 8	199	96 084
Accumulated depreciation, opening balance
01.01.15	-923	-423	-	-	-1 347
Depreciation	-2 259	-380	-	-	-2 639
Accumulated depreciation disposed assets	-	8	-	-	8
Accumulated depreciation at 31.12.15	-3 182	-796	-	-	-3 978
Net book value at 31.12.15	88 347	3 523	3 8	199	92 107

NOTE 6 – 20 LARGEST INVESTORS

		Of
	Of total	outstanding
04.04.2016 NAME	shares	shares
1 SPETALEN ØYSTEIN STRAY **	60,28 %	61,79 %
2 ALLUM HOLDING AS* *	14,47 %	14,83 %
3 GROSS MANAGEMENT AS	4,52 %	4,63 %
4 SAGA TANKERS ASA*	2,44 %	N/A
5 AS FERNCLIFF**	2,17 %	2,23 %
6 BAKKEN BJØRN	1,45 %	1,48 %
7 UTHALDEN A/S	1,36 %	1,39 %
8 PARK LANE FAMILY OFFICE AS	1,05 %	1,08 %
9 APOLLO ASSET LIMITED	1,05 %	1,07 %
1 0 IKDAHL ØYSTEIN	0,90 %	0,92 %
1 1 WIECO AS	0,89 %	0,91 %
1 2 HIGH SEAS AS	0,78 %	0,80 %
1 3 BRÆNDEN BJØRN HÅVARD	0,73 %	0,74 %
1 4 DEUTSCHE BANK AG	0,62 %	0,63 %
1 5 KLAVENES KÅRE	0,59 %	0,60 %
1 6 VIRIK TERJE	0,55 %	0,57 %
1 7 KRISTIAN HODNE AS	0,52 %	0,54 %
1 8 OLSEN BJØRN	0,42 %	0,43 %
1 9 BHB CAPITAL MANAGEMENT AS	0,39 %	0,40 %
2 0 MORGAN STANLEY & CO. INTERNATIONAL	0,36 %	0,37 %
Total	95,54 %	95,43 %

*The Group holds 7,000,000 treasury shares, making it the fourth largest shareholders. These shares are excluded from number of outstanding shares.

** Controlled by board member Øystein Stray Spetalen, representing 78.85 % of outstanding shares.

SAGA TANKERS ASA Sjølyst Plass 2 0278 Oslo

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

www.sagatankers.com