Viking Supply Ships — Interim / Quarterly Report 2010

Mar 30, 2011

TransAtlantic Corrected Year-end report 2010

March 30, 2011 from Rederi AB TransAtlantic (publ)

Corrected Year-end report 2010

January–December

• Net revenues amounted to SEK 2,394 M (2,284)
• Operating loss amounted to SEK 121 M (loss; 213) 1)
• Profit before tax amounted to SEK 407 M (loss; 276) 2)
• Profit after tax amounted to SEK 585 M (loss; 221)
• Earnings per share after tax amounted to 16.60 SEK (loss; 8.0)

Fourth Quarter

• Net revenues amounted to SEK 640 M (559)
• Operating loss amounted to SEK 15 M (81) 1)
• Loss before tax amounted to SEK 256 M (loss; 141)
• Loss after tax amounted to SEK 251 M (loss; 116)
• Earnings per share after tax amounted to a loss of 4.50 SEK (Loss: 4.20)
• This Year-End report for 2010 has been corrected. The adjustment compared with the Year-End Report published on February 23, 2011 is attributable to an write-downs of the carrying amounts of vessels totaling SEK 85 M within the Business Area Industrial Shipping. The additional write-downs of the value of the vessels was attributed to the change in assumption in the assessment of the carrying amounts.
• Profit before tax for the full year amounted to SEK 407 M. Earnings were affected positively by the nonrecurring effect of SEK 775 M through the acquisition of the joint venture companies within Offshore/Icebreaking Business Area that was carried out in the third quarter and writedown of vessel within the Business Area Industrial Shipping to SEK 241 M.
• A four-year charter agreement with a contract value of NOK 430 M was signed for the newly built AHTS vessel Njord Viking with the ENI oil company.

Key figures	Oct-Dec 2010	Oct-Dec 2009	Jan-Dec 2010	Full-year 2009
Net revenue SEK M	640	559	2,394	2,284
Operating loss before tax, SEK M 1)	-15	-81	-121	-213
Loss before tax, SEK M	-256	-141	407	-276
Loss after current tax, SEK M	-257	-142	406	-221
Loss after full tax, SEK M	-251	-116	585	-221
Return onf shareholders' equity, SEK	-4.50	-4.20	16.60	-8.00
Shareholders equity at end of period, SEK/share	43.20	42.40	43.20	42.40
Return on capital employed, %	-20.70	-20.80	12.80	-9.00
Return on shareholders' equity, %	-39.00	34.00	32.80	-17.10
Equity/assets ratio on the closing date, %	46.60	37.00	46.60	37,00

1) Operating result : Earnings before tax and restructuring costs.

1) Earnings were affected positively by the nonreccuring effect of SEK 775 M through the aquisition of the joint venture companies within the Offshore/Icebreaking Business area that was carried out in the third quarter and write-down of vessel of SEK 241 M.

President's statement for January to December 2010

In all respects, 2010 was an eventful year and in many respects an historic year for TransAtlantic. The earlier part of the year started heavily when we were hit hard by the difficult ice conditions in the Baltic Sea and thereafter by the protracted strikes in Finnish ports, have we been able to increase our profitability during the year. We have worked hard and focused on reversing the earnings trend through cost reductions and restructuring of our traffic. In addition, we have implemented TransAtlantic's largest transaction ever through the acquisition of TransViking. This transaction means that we have become a larger, stronger and more distinct company.

In addition of the write-downs of the value of vessels totaling SEK 241 M, the income for the fourth quarter were affected by the recently concluded long-term contracts with the Offshore/Icebreaking business area and by seasonal variations within the Industrial Shipping business area.

However, we see a gradually improved offshore market, which is due to the oil companies now beginning to increase their activity in oil exploration, which is a strong indicator that demand for vessels will increase. This is also confirmed by the tangible increase in bid requests at the beginning of 2011. Although the order bookings for offshore vessels remain high, this means that we have now passed the peak with regard to deliveries of newbuildings. As a result, there will gradually be a better balance between the demand and supply of vessels in the market. Nearest in the future are offshore assignments off the coasts of Greenland and Russia, where operations are planned during 2011. In addition, activity in the Barents Sea will increase during the year. Njord Viking, our newbuilding number two in a series of four, will start a four-year contract in the area for the ENI oil company. The two remaining vessels in the series will be delivered during 2011/2012. The ability to employ these vessels are considered good.

Development within the Industrial Shipping business area varied during the quarter. The beginning of the quarter was at a level comparable with the preceding quarter, but volumes declined during the end of the period. This was attributable to some of our customers closing plants in late December and that the stockpile of newsprint in the US had reached such levels that deliveries to there were stopped. As a result, the quarter was somewhat weaker in terms of earnings than the preceding quarter. The exception was performance in container traffic, which operated at a high degree of utilization during the entire quarter, with resulting improved profitability. The US market remains weak and the weak US dollar has an adverse impact on our traffic. The rapid currency change that occurred during the period, in which the SEK strengthened against nearly all currencies, resulted in significant losses during the quarter. As a result of changing market conditions within Atlantic traffic a write-downs of vessels of SEK 156 M have been made. Additional write -downs of SEK 85 M were made on vessels in the RoRo Baltic Division.

With this presentation of earnings for the fourth quarter of 2010, we mark the end of one of the most exciting years in TransAtlantic's history. The most significant event during the year was that we acquired all shares outstanding in Trans Viking, which made us a stronger and more distinct company. The acquisition also signified that we have a new majority shareholder in Norwegian Kistefos AS. Our earnings trend turned upwards during the year and earnings in the Offshore/Icebreaking business area were particularly positive. However, although the turnaround in the earnings trend was tangible, we are far away from an acceptable profitability level for the Group. We must improve earnings in all areas, and particularly in the Industrial Shipping business area, which was hit the hardest by the recession.

Overall, we have created the conditions for developing TransAtlantic into a leader in those segments in which we are active. The challenge during 2011 will be to capitalize on this opportunity.

Stefan Eliasson President

Consolidated earnings for January—December

Consolidated net revenues amounted to SEK 2,394 (2,284). The increase in reventues is attributable mainly to increased activity and higher utilization within the Offshore/Icebreakings business area.

The Group posted an net profit after tax of SEK 585 M (loss; 221). Profilt before tax was SEK 407 M (loss; 276). Earnings were affected positively by the acquisition of the joint-venture companies within the Offshore/Icebreaking business area, with a nonrecurring effect of SEK 775 M. Earnings were affected by an impairment loss of SEK 241 M on vessels values and a capital loss on vessels sail of SEK 6 M.

The Group earnings are shown in the table:

Group	October– December		Full-year
SEK M	2010	2009	2010	2009
Net revenue	640	559	2,394	2,284
Profit before capital costs, EBITDA	64	-31	884	-8
Operating profit	-244	-134	455	-243
Profit before tax	-256	-141	407	-276
Profit margin	40.00%	-25,2%	17.00%	-12,1%
Profit before tax by business area
Offshore/Icebreaking business area 1)	21	-21	45	-25
Industrial Shipping business area	-15	-39	-105	-140
Ship Management/Group wide	-21	-21	-61	-48
Total operating profit 2)	-15	-81	-121	-213
Restructuring items 3)	-241	-60	-247	-63
Acquisition effects 4)	-	-	775	-
Profit/Loss before tax	-256	-141	407	-276
Tax 5)	5	25	178	55
Profit/Loss after tax	-251	-116	585	-221
SEK per share
Operating profit after current tax	-0.30	-3.00	-3.40	-7.70
Profit after current tax	-4.60	-5.10	11.50	-9.90
Profit/Loss after tax	-4.50	-4.20	16.60	-8.00

As of September 2010, the business area is 100% owned (formerly 50%), which disrupts comparison between the periods. Revenues and earnings in the fourth quarter would have amounted to SEK 76 M and SEK 17 M, respectively, if the ownership interest was 50% as in the preceding year.

Operating result : Earnings before tax and restructuring costs

3) The figure includes SEK 241 M in impairment losses on vessels, and a capital loss SEK 6 M on the sales of the vessel Oak within the Industrial Shipping business area. Full-year 2009 includes impairment losses on vessel values of SEK 61 M and personnel expenses of SEK 2 M for the Industrial Shipping business area.

4) Effects attributable to the sales of Trans Viking. For detailed info see Note 1, page 19.

5) Current tax pertains to tax to be paid or received during the current year.

Financial position, investments and divestments

Concolidated cash and cash equivalents amounted to SEK 637 M 1) (SEK 327 M as of 2009-12-31)

The table below shows overall changes in cash and cash equivalents for the period:

	October-December		Full-year
All amounts in SEK M	2010	2009	2010	2009
Cash flow from current operations before changes in working capital	51	-43	58	-50
Changes in working capital	4	21	33	2
Cash flow from current operations	55	-22	91	-48
Investing operations	-29	-49	164	-142
Financing operations	-27	-6	86	-19
Dividends payed	-	-	-	70
Change in cash equivalents	-1	-77	341	-279
Cash equivalents at beginning of period	639	395	327	574
Exchange-rate difference in cash equivalents	-1	9	-31	32
Cash equivalents at end of period	637	327	637	327

In addtion SEK 637 M 1) in cash, SEK 24 M is available in the form of unutilized credit facilities. At December 31, the Group's shareholders equity was SEK 2,396 M, (corresponding to SEK 43.20 per share), of which the minority share of shareholders' equity was SEK 19 M (22), or 0.30 SEK per share. In connection with the acquisiton of the outstanding shares o Trans Viking the Group was added SEK 298 M in cash and cash equivalents. The equity/asset ratio at the end of the period was 46.60% (37.00 as of December 31, 2009).

Gross investment during the period amounted to SEK 268 M (364). These investments pertained primarily to new building in progress of three AHTS vessels, as well as, capitalized docking fees.

Financial position	December	December
SEK M at the close of each period	2010	2009
Total assets	5,146	3,172
Shareholders equity	2,396	1,175
Equity/assets ratio, %	47	37
Net indebtedness, %	1,533	1,054
Indebtedness, %	64	90
Closing cash and cash equivalents	637	327
SEK per share	43	42

1) SEK 315 M of the consolidated cash and cash equivalents amounting to SEK 637 M was reserved in a special account to secure the Group's cash commitment on the deliveries of two AHTS vessels that are expected to be delivered in the second quarter of 2011 and the first quarter of 2012.

Offshore/Icebreaking business area

The business area's vessels conduct operations in the arctic offshore, in the offshore spot market in the North Sea and in the global offshore sector. The fleet comprises six offshore vessels and two new-build contracts scheduled for delivery in 2011/2012. Three of the existing offshore vessels are developed to cope with both icebreaking and offshore assignments.

At the beginning of the fourth quarter, the Vidar and Balder Viking AHTS vessels and the newbuilt AHTS vessel Loke Viking were employed with assistance to oil drilling rigs west of Greenland. In addition to the standard offshore assignments, the vessels were involved in ice management, which meant that a number of icebergs were towed away from the areas in which oil drilling was carried out. The assignment was concluded during November. After the Greenland assignment, Loke Viking started a charter for the Statoil oil company in the Barents Sea.

Through to December, Tor Viking was employed off Alaska with towing and anchor handling of an arctic oil drilling rig for the Shell oil company. Tor Viking was involved in a dramatic rescue mission in December. A fully loaded panamax bulk carrier was in distress off the coast of Alaska. As a result of good seamanship, the Tor Viking was able to save the vessel and tow it into port. After conclusion of the assignment for Shell in Alaska, Tor Viking returned to the North Sea through the Northern Sea Route (north of Siberia's coast). Tor Viking's passage so late in the season could provide new opportunities for late transit of offshore units through the so-called Northeast Passage.

After the Greenland assignment, the Balder Viking operated in a weak offshore market and thereafter was called in by the Swedish Maritime Administration for icebreaking in the Baltic Sea at the end of December. After Greenland, the Vidar Viking operated in a weak spot market – a market characterized by an excess of tonnage. Odin Viking remains employed with a long-term offshore assignment off Rio de Janeiro, Brazil. The contract runs through to the second half of 2011. Brazil is sharply increasing its focus on oil recovery offshore and Odin Viking's contract represents a favorable positioning in this market.

The other vessel in the series, Njord Viking, was delivered from the shipyard at the beginning of February and the remaining two vessels are scheduled for delivery during 2011/2012.

October-December Full-year Offshore/Icebreaking 1) 2010 2009 2010 2009 Net revenue 155 18 298 125 Profit/loss after net financial items 21 -21 45 -25 Profit margin 14% -116% 15% -20%

The business area posted operating profit of SEK 45 M (loss: 25) for the full year.

1) As of September 2010, the business area is 100% owned (formerly 50%), which disrupts comparison between the periods. Revenues and earnings in the fourth quarter would have amounted to SEK 76 M and SEK 17 M, respectively, if the ownership interest was 50% as in the preceding year.

Industrial Shipping business area

The business area conducts systems traffic in the Baltic Sea using RoRo and container vessels, (RoRo Baltic Division), container bases scheduled service operations between Sweden and the UK (Container Division), contract based bulk transport in the Baltic Sea, Mediterranean Sea and North as well as RoRo services across the Atlantic and with side port vessels traffic along the US east costSea (Bulk/Atlantic Division).

The RoRo‐Baltic Division conducts scheduled services between Finland and Sweden/Germany on two RoRo routes and a container line. In addition, the division hires cargo space from StoraEnso in its systems traffic, which serves ports in the Gulf of Bothnia. In traffic in northern Finland, the TransLumi line, volumes remained stable during the period. In traffic in southern Finland, the TransSuomi Line, earnings improved as a result of a tonnage reduction of one vessel on the route. Volumes during the quarter were stable, with cars shipped for Volvo continuing to increase. However, due to production stops during the Christmas holidays at StoraEnso's paper mills and Volvo's plants, the year ended weakly.

Traffic in TransFeeder North increased with port calls in Mäntyluota and Gothenburg aimed at raising the degree of utilization. Renegotiated T/C leases had a positive impact on earnings.

The Container Division conducts container-based scheduled service in the UK (TransPal Line) and feeder traffic (TransFeeder South). At TransPal Line, the fourth quarter was characterized by increased volumes. A volume increase was noted for the quarter as well as on a full-year basis. This was primarily as a result of a recovery in the steel industry, which was reflected in the volume increase. In terms of earnings, the fourth quarter was the best during the year despite operational disruptions caused by weather and tidal problems. In TransFeeder South, volumes remained at stable levels. For some of the quarter, capacity problems led to increased operating costs. Additional project cargoes generated positive earnings effects.

In the Bulk/Atlantic Division, smaller tonnage vessels were affected adversely by the economic challenges within the EU and an increase in supply of tonnage, and consequently, have been chartered from and including year-end 2010 for a 12-month period. As a result of the depreciated US dollar, westbound flows for the larger bulk tonnage were affected negatively, resulting in depressed freight rates from Europe to North America.

Westbound traffic with newsprint across the Atlantic declined during the second half of the quarter after the vessels posting a high degree of utilization during the first nine months of the year. The volume decline was attributable partly to high paper inventories in the US and a weak US dollar. Container rates continued to increase in the transatlantic traffic during the quarter, which strengthened our competitiveness with regard to other transport modes. Eastbound traffic with newsprint remained low due to the depressed price situation in Europe for newsprint.

Industrial Shipping posted an operating loss of SEK 105 M (loss: 140) for the full year.

	October-December		Full-year
Industrial Shipping	2010	2009	2010	2009
Net revenue	454	477	1,865	1,900
Loss after net financial items	-15	-39	-105	-140
Profit margin	-3%	-4%	-6%	-7%

Group organization/ Ship Management

The central Group organization comprises management, as well as central administration, finance management and external Ship Management. The external Ship Management unit includes assignments for external vessel owners as well as manning for the Swedish Government's five icebreakers. Cooperation with the Swedish Maritime Administration provides TransAtlantic a broader market offering within the Offshore/Icebreaking business area, particularly in the focus on arctic offshore. The primary reason for accepting external assignments is to achieve economies of scale for shipboard employees and for purchases undertaken for the Group's fleet of vessels. TransAtlantic terminated its cooperation with Atlantic Container Line (ACL) within Ship Management on December 1, 2010. A resource realignment was implemented and all the affected shipboard personnel were transferred to the new employer. Earning changes is mainly attributable to increased interest and bank carges.

Operating earnings for the full-year amounted to a loss of SEK 61 M (loss 48).

	September-December		Full-year
Group organization/Ship Management	2010	2009	2010	2009
Net revenue	31	64	231	260
Loss after net financial items	-21	-21	-61	-48

Parent Group

Earnings and financial position

The parent Company reported a loss before tax of SEK –235 M (loss;193). Loss after tax was amounted to SEK 181 M (loss; 146). The amount includes impairment losses of SEK 59 M on shareholdes in subsidiaries.

The Parent Company shareholder's equity amounted to SEK 1,125 M (683 as 2009-12-31), total assets amounted to SEK 2,173 M (1,252 as 2009-12-31). The equity/assets ratio on the balance sheet date was 52 % (55 at December 2009). Liquidity at the end of the period amounted to SEK 31 M (73 at December 31, 2009).

Number of shares

Share distribution at December 31, 2010 is presented below:	December
	2010
Share capital	554,513,500 SEK
Registered number of Series B– shares	51,815, 429
Series B shares in the market	51,815,429

In addition, there are 3 635 921 A shares.

Other

Corporate tax

The general situation for the Group's current structure is that taxes payable are highly limited. Accordingly, recognized corporate tax mainly comprises deferred tax.

The recognized deferred tax liability for the Swedish operations amounted to SEK 40 M at the end of December 2010 (-87 at December 31, 2009).

The deferred tax liability, for the operations outside Sweden amounted to SEK 43 M at December 2010 (–54 at the end of December 2009).

Risks and uncertainties

TransAtlantic is a Group characterized by a high degree of international operations, thereby exposing it to a number of operational and financial risks. TransAtlantic works actively to identify and manage these risks, and risk management is included as an element of the ongoing reviews of the operations. It has been deemed that no further key risks and uncertainties have arisen in addition to those risks and uncertainties described on page 44 in TransAtlantic's 2009 Annual Report.

The ongoing newbuilding program involves payments in cash and cash equivalents in conjunction with vessel deliveries. In accordance with renegotiated loan agreements, the Group allocated funds amounting to SEK 315 M to special accounts to secure these obligations. This is recognized among other cash and cash equivalents.

Due to the year's unfavorable profitability, the Group held discussions during the year with the affected banks regarding financing terms and conditions. These discussions have been concluded with the exception of one bank. With regard to this bank, the Group could not fulfill the conditions set regarding key financial figures through and including the second quarter of 2010. As of the third quarter of 2010, the Group again posted key financial figures that are at the level or higher than specified in the financing agreement. The ongoing discussions involve the bank's right to receive compensation retroactively in the form of increased security because the Group failed to achieve the financial key figure measurements at the level specified in the financing agreement.

Accounting policies

This interim report was prepared, the Group, in accordance with the application of IAS 34 Interim Financial Reporting and applicable rules in the Swedish Annual Accounts Act and for the parent Company, in accordance with the Swedish Annual Accounts Act and the Swedish Financial Reporting Board's recommendation RFR 2.3 Accounting for Legal Entities. Unless otherwise noted, the same accounting policies and calculation bases for both the Group and Parent Company have been applied as those used in the most recent Annual Report.

New and amended accounting policies in 2010.

Revised IFRS 3 Business Combinations and amended IAS 27 Consolidated and Separate Statements have been applied in connection with the acquisitin and divestment of operations from 2010. This means, for example, that the share formerly owned was revalued at fair value, which resulted in effects on the vessel carrying amounts of SEK 444 M, customer contracts of negative SEK 25 M and deferred tax of negative SEK 12 M, totaling SEK 407 M, which is recorded among "Other operating revenue".

Extra-ordinary general meeting

The Extra-ordinary General Meeting in September 2010 resolved that the number of Board members would be six for the period until the next Annual General Meeting. Newly elected members included Christen Sveaas and Åge Korsvold. Folke Patriksson, Håkan Larsson, Christer Olsson and Magnus Sonnorp will remain as Board members. Furthermore, Christer Lindgren will remain as employee representative. The meeting also elected Christen Sveaas as Chairman of the Board and Folke Patriksson as Vice Chairman.

Annual General Meeting

Rederi AB TransAtlantic's Annual General Meeting will be held on Tuesday, May 3, 2011 at 3:00 p.m. in Skärhamn. The notice convening the Annual General Meeting will be published not later than four weeks prior to this date on the company's website, www.rabt.se and in Post & Inrikes Tidning and will be advertised in Dagens Industri. Registration to attend the Annual General Meeting may be made as of Tuesday, April 5 through Thursday, April 28, 2011on the website, www.rabt.se, or by telephone +46 (0)304-67 47 00.

TransAtlantic's 2010 Annual Report will be available at the company's head office not later than Tuesday, April 12. It will also be distributed to the shareholders who so request.

Nominations Committee

As decided at the Annual General Meeting in April 2010, a Nomination Committee shall be established prior to the 2011 Annual General Meeting. The Board Chairman was assigned to contact the three largest owner-registered shareholders or shareholder groups at the end of the third quarter of 2010 and request them to appoint a member each tot eh Nomination Committee, which shall comprise three members. In advance of the 2011 Annual General Meeting, the Nomination Committee comprises Christen Sveaas, Chairman, Åge Korsvold, Lena Patriksson Keller and Jenny Lindén Urnes. The Nomination Committee's proposal regarding the Board of Directors will be presented in the notice convening the Annual General Meeting in which the Nomination Committee's other proposals will be presented.

Transaktions with closely-related parties

No transactions took place between TransAtlantic and its closely related parties that had a significant effect on the company's position and earnings.

Number of employees

At December 31, the number of employees in the Group amounted to 739 (1 050). The distribution between land-based and onboard employees is 182 and 557, respectively.

Dividens

The Board proposes that no dividend be distributed for the 2010 fiscal year (-).

Events after the close of the reporting period

The combined offshore/icebreaking vessel Tor Viking was drafted for icebreaking service in the Baltic Sea at the beginning of January and the Vidar Viking was called in mid-February. The newbuilt AHTS vessel Njord Viking was delivered in the beginning of February from the Astilleros Zamakona shipyard in Spain.

TransAtlantic Corrected Year-end report 2010

Skärhamn March 30, 2011

The Board of Directors Rederi AB TransAtlantic

For further information please contact President Stefan Eliasson or CFO Ola Helgesson, tel +46 (0)304-67 47 00

Financial calender 2011

May 3	Interim report January—March
May 3	General Annual Meeting
August 4	Interim report January—June
October 27	Interim report January—September

The report is available on its entirety on the company's website, www.rabt.se

Consolidated income statement

	October-December		January-December
All amounths in SEK M	2010	2009	2010	2009
Net sales	640	559	2,394	2,284
Other operating revenue 1)	2	1	777	3
Direct voyage costs	-270	-325	-1,163	-1,116
Personnel costs	-170	-169	-697	-648
Other costs	-139	-97	-428	-531
Depreciation/write-down	-307	-103	-428	-235
Operating profit/loss	-244	-134	455	-243
Net financial items	-12	-7	-48	-33
Profit before tax	-256	-141	407	-276
Tax on profit/loss before the period 2)	5	25	178	55
PROFIT FOR THE PERIOD 3)	-251	-116	585	-221
Attributable to:
Shareholders of the company	-250	-115	584	-214
Minority interest in subsidiaries	-1	-1	1	-7
INCOME FOR THE PERIOD	-251	-116	585	-221
Earnings per share, calculated on profit attributable to Parent Company's shareholders, per share, SEK (before and after dilution)	-4.5	-4,10	16.6	-7,70

The amount includes the effects attributable to the acquisition of Trans Vikings with SEK 775 M. For more details, see Not 1, page 19. 2) See section, "Corporate tax" page 9, current tax is includes with SEK –2 M (SEK-M).

3) The amount includes write downs of vessels of SEK 241 M, and a capital loss of SEK 6 M from the sale of the vessel Oak, within the business area Industrial Shipping. For full-year 2009, the Industrial Shipping business area included restructing cost of SEK 61 M for the impairment of vessels and personnel costs of SEK 2 M.

Consolidated statement of comprehensive income	October-December		January-December
All amounts in SEK M	2010	2009	2010	2009
Profit for the period	-251	-116	585	-221
Other comprehensive income for the period:
Change in hedging reserve	-8	0	19	16
Change in translation reserve	19	40	-41	35
Total other comprehensive income for the period	11	40	-22	51
TOTAL COMPREHENSIVE FOR THE PERIOD	-240	-76	563	-170
Attributable to:
Shareholders of the parent company	-235	-75	566	-163
Minority interest in subsidaries	-5	-1	-3	-7
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	-240	-76	563	-170

Net sale by business area

	October-December		January-December
All amounts in SEK M	2010	2009	2010	2009
Offshore/Icebreaking 1)	155	18	298	125
Industrial Shipping 1)	454	477	1,865	1,900
TOTAL BUSINESS OPERATIONS	609	495	2,163	2,025
Ship Management/Group-wide items	217	293	1,115	1,108
./. Elimineted internal sales	-186	-229	-920	-849
TOTAL NET SALES	640	559	2,394	2,284
1) Internal sales missing

Profil/loss after finanical items by business area

	October-December		January-December
All amounts in SEK M	2010	2009	2010	2009
Offshore/Icebreaking 1)	21	-21	45	-25
Industrial Shipping	-15	-39	-105	-140
TOTAL—BUSINESS OPERATIONS	6	-60	-60	-165
Ship Management/Group-wide items	-21	-21	-61	-48
OPERATING PROFIT/LOSS BEFORE TAX 1)	-15	-81	-121	-213
Restructuring items 2)	-241	-60	--247	-63
Effects on acquisition3)	-	-	775	-
RESULT BEFORE TAX	-256	-141	407	-276
Attributable to:
Shareholders of the parent company	-255	-140	406	-269
Minority interest in subsidaries:	-1	-1	1	-7

Operating result: Result before tax and restructuring costs.

2) The amount includes write downs of vessels of SEK 241 M and a capital loss of SEK 6 M from the sale of the vessel Oak, in the business area Industrial Shipping. For full-year 2009 includes restructuring costs in the Industrial Shipping business area, comprising impairment losses of SEK 61 M and personnel expenses of SEK 2 M.

3) The amount includes the effects attributable to the acquisition of Trans Vikings with SEK 775 M. For more details, see Not 1, page 19.

Assets by business area

Alla amounts in SEK M	2010-12-31	2009-12-31
Offshore /Icebreaking	3,158	974
Industrial Shipping	1,080	1,555
TOTAL—BUSINESS AREAS	4,238	2,529
Ship Management/Group-wide items	908	643
TOTAL ASSETS	5,146	3,172

Consolidated balance sheet

All amounts in SEK M	2010-12-31	2009-12-31
Vessels	3,815	2,195
Other tangible fix assets	79	87
Intangible fixed assets 1)	12	12
Financial assets	106	105
Total fixed assets	4,012	2,399
Current assets	1,134	773
TOTAL ASSETS	5,146	3,172
Shareholders equity 2)	2,396	1,175
Long-term liabilities 3)	2,091	1,447
Current liabilities 3)	659	550
TOTAL SHAREHOLDER'S EQIUTY AND LIABILITIES	5,146	3,172

1) The amount includes goodwill with SEK 2 M (2).

2) Minority interest are included with SEK 19 M (22).

3) The total of the Group's long-and short term interest-bearing liabilities amounts to SEK 2,170 M (1,381)

Consolidated cash-flow statement

	October-December		January—December
All amounts in SEK M	2010	2009	2010	2009
Cash flow from current operations before changes in working capital	51	-43	58	-50
Changes in working capital	4	21	33	2
Cash flow from current operations	55	-22	91	-48
Investing operations 1) 2)	-29	-49	164	-142
Financing operations	-27	-6	86	-19
Dividend payed	-	-	-	70
Change in cash equivalent continuing operations	-1	-77	341	-279
Cash equivalents at beginning of period	639	395	327	574
Exchange-rate difference in cash equivalens	-1	9	-31	32
CASH EQUIVALENTS AT END OF PERIOD 3) 4)	637	327	637	327

1) Gross investment before financing during January-December 2010 amounted to SEK 268 M (364). Investment during the period mainly comprised capitalized docking fees and the new building in progress of three AHTS vessels.

2) Cash and cash equivalent of SEK 298 M was brought to the Group through the acquisition of Trans Viking.

3) In the Group, current assets include cash and cash equivalents of SEK 637 M (327). The Group has also unutilized credit facilities totaling SEK 24 M (124). Utilized overdraft facilities at December31, 2010 amounted to SEK 76 M (6).

4) SEK 315 M of the consolidated cash and cash equivalents amounting to SEK 637 M was reserved in a special account to secure the Group's cash commitment on the deliveries of two AHTS vessels that are expected to be delivered in the third quarter of 2011 and the first quarter 2012.

Consolidated shareholder's equity

	October-December		January-December
All amounts in SEK M	2010	2009	2010	2009
Shareholders' equity at beginning of period	2,636	1,251	1,175	1,421
New share issue	-	-	658	-
Dividend	-	-	-	-70
Acquistion of own shares	-	-	-	-6
Total comprehensive income	-240	-76	563	-170
SHAREHOLDERS' EQUITY AT END OF PERIOD 1)	2,396	1,175	2,396	1,175

Threre are no warrents of other eqiuty instruments in TransAtlantic Group. 1) Shareholders' eqiuty includes minority interest of SEK 19 M (22).

Data per share

	October-December		January-December
All amounts in SEK M	2010	2009	2010	2009
Earnings before capital expenses(EBITDA)	1,1	-1,1	25.0	-0,3
Earnings before interest expenses (EBIT)	-4.4	-4,7	12.9	-8,4
Profit after current tax	-4.6	-5,1	11.5	-9,9
Profit av full tax	-4.5	-4,2	16.6	-8,0
Shareholders' equity at end of period	43.2	42,4	43.2	42,4
Operating cash flow	0.9	-1,4	23.8	-1,5
Total cash flow	-0.0	-2,8	9.6	-10,0

Key data 1)

		October-December		January—December
	2010	2009	2010	2009
Earnings before capital expenses (EBITDA), SEK M	64	-31	884	-8
Earnings before interest expenses(EBIT), SEK M	-244	-131	455	-233
Shareholders equity, SEK M	2,396	1,175	2,396	1,175
Net interestbearing debts, SEK M	1,533	1,054	1,533	1,054
Operating cash flow, SEK M	52	-38	841	-41
Total cash flow, SEK M	-1	-77	341	-279
Return on capital employed, %	-20.7	-20,8	12.8	-9,0
Return on shareholders' ,%	-39.0	-34,0	32.8	-17,1
Interest-coverage ratio, TIMES	4.3	-2,8	16.0	0,0
Equity/assets ratio	46.6	37,0	46.6	37,0
Dept/equity ratio, %	64.0	89,7	64.0	89,7
Profit margin, %	-40.0	-25,2	17.0	-12,1

1) Key figures are calculated in the sam manner as in the most recent Annual Report.

TransAtlantic Corrected Year-end report 2010

Number of shares

	October-December		January—December
Number of shares ('000)	2010	2009	2010	2009
Number of outstanding shares at beginning of period	55,452	27, 726	27,726	27,926
Newly issued shares	-	-	27,726	-
Repurchase of treasury shares	-	-	-	-200
Number of outstanding shares at end of period	55,452	27,726	55,452	27,726
Number of shares held as treasury shares1)	-	705	-	705
Total number of shares at end of period	55,452	28,431	55,452	28,431
Avarage number of outstanding shares	55,452	27,726	35,322	27,837

1) In connection with the acquisition of the outstanding shares of Trans Viking per 2010-09-22 from Kistefos AS, which was paid in newly issued shares, was the withdrawal of previously repurchased of 704 800 Shares B.

Parent company income statement

	October-December		January—December
All amounts in SEK M	2010	2009	2010	2009
Net sales	309	313	1,258	1,245
Other operating revenue	0	0	0	1
Direct voyage costs	-94	-123	-395	-382
Personnel costs	-76	-73	-283	-255
Other costs	-185	-182	-735	-756
Depreciation/write-down	-2	-5	-15	-22
Operating profit/loss	-48	-70	-170	-169
Net finanical items 1)	-31	30	-65	-24
Profit/loss before tax	-79	-40	-235	-193
Tax on profit/loss for the period2)	20	15	54	47
PROFIT/LOSS FOR THE PERIOD	-59	-25	-181	-146

1) The amount for the period January-December 2010 includes impairment losses of SEK 59 M on shareholdings in subsidiaries. In the amount of full-year 2009 included anticipated dividends from subsidiaries of SEK 34 M and write-downs of shareholdings in subsidiaries of SEK -57 M.

2) For the period of Januany—December includes acutal tax amounting to SEK - M (-).

Parent company balance sheet

All amounts in SEK M	2010-12-31	2009-12-30
Tangible fixed assest	56	59
Intangible fixed assets	2	30
Financial assets 1)	1,738	799
Total fixed assets	1,796	888
Current assets 2)	377	364
TOTAL ASSETS	2,173	1,252
Shareholders ' equity 1)	1,125	683
Provisions	31	35
Long term liabilities 3)	499	118
Current liabilities 3)	518	416
TOTAL SHAREHOLDERS' EQUITY, PROVISIONS AND LIABILITES	2,173	1,252

1) The increase is attributable to the new issue that occurred in connection with the acquisition of the outstanding shares of Trans Viking

2) The total of the parent company interest-bearing liabilities amounts to SEK 31 M (73).

3) The sum of the long– and short-term interest bearing liabilities amounted to SEK 560 M(114).

Changes in Parent Company shareholder's equity

		October-December	January-December
All amounts i SEK M	2010	2009	2010	2009
Shareholders equity at beginning of the period	1,220	755	683	952
New issue less issue expenses	-	-	659	-
Dividend	-	-	-	-70
Purchase of own shares	-	-	-	-6
Group contribution	-49	64	-49	-64
Tax effect on Group contribution	13	17	13	17
Total earnings for the period	-59	-25	-181	-146
SHAREHOLDERS' EQUITY AT END OF PERIOD 1)	1,125	683	1,125	683

1) ) In connection with the acquisition of the outstanding shares of Trans Viking per 2010-09-22 from Kistefos AS, which was paid in newly issued shares, was the withdrawal of previously repurchased of 704 800 Shares B.

Not 1 Acquisition of Trans Viking

The acquisition was financed by way of newly issued shares in TransAtlantic, of which 1,817,961 Series A shares and 25,907,715 Series B shares, totaling 27,725,676 new shares.

The acquisition includes shares and participations in:

Country	Business area	No. of employees
Norge	Offshore & Icebreaking	None
Norge	Offshore & Icebreaking	None
Sverige	Offshore & Icebreaking	None
Sverige	Offshore & Icebreaking	None
Sverige	Offshore & Icebreaking	None

The reason for the acquisition is that the Group, as a result of this transaction, will become the sole owner of Trans Viking, providing Transatlantic full access to the operation's cash flow and the opportunity to optimize control of the business and coordinate it with its concept of artic offshore. The transaction also strengthens the Group's financial position and enhances transparency of the Group structure.

The final acquisition value has been set at SEK 665 M calculated on a share price of SEK 24.00 SEK per share at September 22, 2010, which was the date on which the controlling interest of the acquired company was transferred to Transatlantic. The fair value of the acquired net assets in the above-mentioned company amounted to SEK 1,035 M according to the periodic statement dated September 22, 2010, which meant a gain from a bargain purchase (so-called negative goodwill of SEK 370 M). This difference arises because the payment for the acquisition, shares of TransAtlantic, which was valued at less than net asset value

In accordance with IFRS 3 Business Combinations, applied from 2010, previously owned shares are remeasured at fair value, thereby impacting the recognized value of vessels and customer contracts.

Earnings relating to the acquired shares were included in the consolidated accounts from the date of acquisition on September 22, 2010. Earnings and net revenues from the date of acquisition amounted to SEK M 15 resp. SEK 4 M (meaning the eight days). If the acquired operation had been wholly owned from the beginning of the year, the Group's net revenues would have been SEK 155 M higher, and consolidated earnings would have been SEK 10 M lower.

Impact on balance sheet

SEK M	Fair value of net assets
Vessel	3,030
Other tangible fixed assets	0
Intangible fixed assets	0
Finansial assets	0
Total fixed assets	3,030
Current assets	670
Total assets	3,700
Long-term liabilities	-1,767
Current liablities	-22
Total equity and liabilities	- 1,789
Fair value of net assets	1,911
Purchase consideration	- 665
Fair value of previously owned shares	- 876
Negative goodwill, recognized in CFS as Other operation income	370
Revaluation effect of previously owned shares, recognized in CFS as Other operation income	408
Transaction costs, recognized in CFS as Other expenses	- 3
Total	775

TransAtlantic Corrected Year-End report 2010

Definitions

CAP

A financial interest-rate instrument used to ensure that interest expense does not exceed a certain set level.

Capital employed

Interest-bearing liabilities and shareholders' equity.

Debt/equity ratio

Interest-bearing liabilities minus cash and cash equivalents divided by shareholders' equity.

Desinvestment

Divestment of fixed assets.

Dividend yield

Closing share price at year-end divided by the dividend per share.

Earnings per share

Profit after financial items less: 1) current tax, 2) tax on profit for the year (current and deferred tax) in accordance with the consolidated income statement.

EBIT

Earnings before interest and taxes, corresponding to operating profit/ loss.

EBITDA

Earnings before Interest, Taxes, Depreciation and Amortization, corresponding to profit/loss before capital expenses and tax.

Equity/assets ratio

Shareholders' equity divided by total assets.

Equity per share

Equity divided by the number of shares outstanding.

Hedging

A general term for financial measures taken to avoid undesirable effects on earnings due to variations in interest rates, exchange rates, etc.

IFRS

International Financial Reporting Standards – an international accounting standard that all listed companies within the EU must have adopted by 2005.

Interest coverage ratio

Operating profit/loss before depreciation plus interest income divided by interest expense.

Net indebtedness

Interest-bearing liabilities less cash and cash equivalents.

Operating cash flow

Profit/loss after financial income/expenses adjusted for capital gains/ losses, depreciation/amortization and impairment.

Operating profit/loss (before tax)

Profit/loss before tax and before and restructuring costs.

Operating profit/loss per business area

Profit/loss after financial items and before Group-wide expenses and central/Group-wide net financial income/expenses.

P/E ratio

Closing share price divided by profit after financial items with a deduction made for full tax per share.

Percentage of risk-bearing capital

Shareholders' equity and deferred tax liabilities (including minority share), divided by total assets.

Operating Profit/loss per business area

Operating profit/loss for each business area, reported before Groupwide expenses.

Profit margin

Profit after financial items divided by net sales.

Restructuring costs

Includes revenues and expenses of a nonrecurring nature, such as capital gains/losses from the sale of vessels, impairment of vessels and costs related to personnel cutbacks. Also includes costs arising from the merger with Gorthon Lines.

Return on equity

Profit after financial items less tax on profit for the year, divided by average shareholders' equity.

Return on capital employed

Profit after financial items plus interest expense, divided by average capital employed.

Share of interest-bearing capital

Equity and deferred tax (including minority share) divided by total assets.

Total cash flow

Cash flow from operating activities, investing activities and financing activities.

TransAtlantic Corrected Year-End report 2010

Rederi AB TransAtlantic (publ), (org nr 556161-0113) Besöksadress: Södra Hamnen 27 P O Box 32, 471 21 Skärhamn, Sweden Tel: +46 (0)304—67 47 00 E-mail: info@rabt.se Internet: www.rabt.se