Viking Supply Ships

Quarterly Report • Aug 5, 2011

TransAtlantic Interim report January-June 2011

August 4, 2011 from Rederi AB TransAtlantic (publ)

Interim report January-June 2011

Second Quarter 2011

• Net revenues amounted to SEK 661 M (598)
• Result before tax amounted to SEK -73 M (-30)
• Result after tax amounted to SEK -52 M (44)
• Earnings per share after tax amounted to -0.9 SEK (1.6)

January–June 2011

• Net revenues amounted to SEK 1,239 M (1,161)
• Result before tax amounted to SEK -138 M (-115)
• Result after tax amounted to SEK -105 M (41)
• Earnings per share after tax amounted to -1.9 SEK (1.5)
• The result for the second quarter remains weak. The earnings of the Offshore/Icebreaking business area were adversely impacted by a continued weak offshore spot market in the North Sea and two vessels that were not were fully utilized during the period, due to upgrade work at the shipyard and preparation for new assignments, respectively. Operating profit for the Industrial Shipping business area improved compared with the preceding year.
• A new freight agreement was signed with StoraEnso for the shipping of forestry products from paper mills in Kemi and Oulu to Antwerp/Zeebrugge. Six vessels will be deployed in the traffic system under this agreement.
• The acquisition of the shipping and logistics company Österströms International AB was completed at the beginning of June.
• At the end of July, the third of a series of four AHTS vessels, Magne Viking (previously named TransBering), was delivered from the shipyard in Spain.
• The Board of Directors intends to propose a SEK 500 M new share issue to the Extraordinary General Meeting in September. The issue amount is dependent on the potential acquisition of SBS Marine, a British offshore shipping company based in Aberdeen.
• The process of the spin-off of the Group to create two well capitalized and well positioned separate units in the future, is continuing according to plan.
• The establishment of offshore operations, Trans Viking Offshore A/S, including the relocation of its head office to Copenhagen, is progressing according to plan and is expected to be completed by the end of the year.

Key figures	January-June 2011	January-June 2010
Net revenue SEK M	1,239	1,161
Operating loss before tax, SEK M 1)	-97	-115
Result before tax, SEK M	-138	-115
Result after tax, SEK M	-105	41
Return onf shareholders' equity, SEK	-1.9	1.5
Shareholders equity at end of period, SEK/share	42.2	42.4
Return on capital employed, %	-4.3	-7.7
Return on shareholders' equity, %	-8.8	6.7
Equity/assets ratio on the closing date, %	43.9	38.2

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

President's statement for the period January to June 2011

Earnings for the quarter were unsatisfactory. In the Offshore/Icebreaking business area, the market is still characterized by low rates, a weak offshore spot market in the North Sea and two vessels that were not fully utilized during the period, due to upgrade work at the shipyard and preparation for new assignments, respectively. In the Industrial Shipping business area, demand and the market situation in the various segments displayed differing tendencies.

In the Industrial Shipping business area, demand for bulk and small bulk traffic weakened during the quarter, while traffic in the RoRo and container units remained largely unchanged. Many segments are experiencing a significant tonnage surplus, which has meant that freight rates have been kept at relatively low levels. Earnings for the period were unsatisfactory. Nevertheless, we can state that the trend in the Industrial Shipping business area has been positively turned around and we can present a result before tax of SEK 0 M for the quarter. By way of comparison, the result for the year-earlier period corresponded to SEK -18 M. We achieved this by implementing cost savings and capitalizing on the recovery in the Swedish export industry, particularly in transport volumes in the Container and RoRo Baltic Divisions.

Earnings in the Offshore/Icebreaking business area were impacted by low rates in the spot market in the North Sea, a low degree of utilization and two vessels that were not fully utilized during the period, due to upgrade work at the shipyard and preparation for new assignments, respectively. At the end of July, the third of a series of four AHTS vessels, Magne Viking, was delivered. The vessel will operate on the offshore spot market in the North Sea.

An Extraordinary General Meeting is planned for the third quarter at which the Board's proposal on a new share issue of SEK 500 M will be discussed. The aim of the issue is to ensure freedom of action for both of the operations in the ongoing restructuring process and to finance a potential acquisition the British offshore company SBS Marine, which operates a fleet of five modern and one older PSV vessels.

The previously announced process of the spin-off of the Group is progressing according to plan. The aim is to distribute Trans Viking Offshore A/S to the shareholders and list the company on the Oslo Stock Exchange in 2012. Following the spin-off, Rederi AB TransAtlantic will comprise the Industrial Shipping business area and remain listed on NASDAQ OMX Stockholm.

Trans Viking's operations and head office will be relocated to Copenhagen and we believe that this relocation will have been completed and the new organization will be fully in place by year-end. In addition, the Board has decided to relocate the Group's head office from Skärhamn to Gothenburg, which we expect to be completed by year-end. In conjunction with the acquisition of the shipping and logistics company Österströms at the beginning of June, extensive work was initiated on integrating and developing the company to coordinate a number of functions in the new organization.

Skärhamn August 4, 2011 Rolf Skaarberg President and CEO

Consolidated earnings for January-June

Consolidated net revenues amounted to SEK 1,239 M (1,161). The increase in revenues is primarily attributable to the inclusion of the Österströms Group in the financial statements from June 8, 2011.

For the first six months, the Group result was SEK -105 M (41). The result before taxes amounted to SEK -138 M (-115).

The Group earnings are shown in the table:

Group	April-June			January-June
SEK M	2011	2010	2011	2010	2010
Net revenue	661	598	1 ,239	1,161	2,394
Result before capital costs, EBITDA	31	18	54	-21	884
Operating result	-58	-21	-99	-98	455
Result before tax	-73	-30	-138	-115	407
Result margin	-11.0%	-5.0%	-11.1%	-9.9%	17.0%

Result before tax by business area

Offshore/Icebreaking business area	-21	2	-48	-10	45
Industrial Shipping business area	0	-18	-11	-78	-105
Ship Management/Group wide	-22	-14	-38	-27	-61
Total operating result 1)	-43	-30	-97	-115	-121
Restructuring items 2)	-27	-	-38	-32	-247
Acquisition effects 3)	-3	-	-3	-	775
Result before tax	-73	-30	-138	-115	407
Tax	21		33	156	178
		74
Result after tax	-52	44	-105	41	585
SEK per share
Result after current tax	-1.3	-1.1	-2.5	-4.2	11.5

Result after tax -0.9 1.6 -1.9 1.5 16.6

1) Operating profit: Profit before tax, restructing items and acquisition effects.

2) The half-yearly earnings includes expenses of SEK 5 M for the departing President , expenses of SEK 5 M related to the establishment of the Danish offshore operations, a capital gain of SEK 3 M from the sale of the Obbola, Östrand, Ortviken and Map vessels and write-downs of certain other assets. The amount for the full-year 2010 includes the impairment losses on vessels of SEK 241 M.

3) Cost in conjunction with the acquisition of Österströms amounted to SEK 3 M. The amount for the full-year 2010 includes effects attributable to the acquisition of Trans Viking.

Financial position, investments and divestments

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

	April-June		January-June		Full year
All amounts in SEK M	2011	2010	2011	2010	2010
Cash flow from current operations before changes in working capital	6	-9	16	-47	58
Changes in working capital	-56	87	-5	79	33
Cash flow from current operations	-50	78	11	32	91
Investing operations	285	-90	105	-103	164
Financing operations	-208	-43	-239	15	86
Dividends payed	-	-	-	-	-
Change in cash equivalents	27	-55	-123	-56	341
Cash equivalents at beginning of period	480	317	637	327	327
Exchange-rate difference in cash equivalents	16	-3	9	-12	-31
Cash equivalents at end of period	523	259	523	259	637

Consolidated cash and cash equivalents at the end of the period amounted to SEK 523 M (637 as of December 31, 2010). In addition, the Group has credit facilities in the form of unutilized overdraft facilities of SEK 21 M (24 as of December 31, 2010). Of the SEK 523 M in cach and cash equivalents, SEK 321 M is reserved in an escrow account to secure the Group's cash commitment on the deliveries of two AHTS-vessels, of which the third, Magne Viking, was delivered at the end of July and the last vessel of a series of four is expected to be delivered at year-end 2011/2012. The low access to cash and cash equivalents restricts the Group's freedom of action.

At the end of June 30, the Group's shareholders equity was SEK 2,341 M (corresponding to SEK 42.2 per share), of which non-controlling interests in shareholders' equity amounted to SEK 20 M, corresponding to SEK 0.4 per share. At the quarter, utilized credit facilities amounted to SEK 91 M (76 as of December 31, 2010). Cash flow from investing activities for the quarter totaling SEK 285 M, largely comprises proceeds from sales of vessels of SEK 315 M.

The equity/asset ratio at the end of the period was 43.9% (46.6 of December 31, 2010). Gross investments during the first six months amounted to SEK 458 M (178). These investments primarily pertained to cash payment for the delivery of Njord Viking in February and the acquisition of the Österströms Group and Arctic Ice Management AB.

Financial position	June	December
SEK M at the close of each period	2011	2010
Total assets	5,339	5,146
Shareholders equity	2,341	2,396
Equity/assets ratio, %	44	47
Net indebtedness, %	79	64
Closing cash and cash equivalents	523	637
Shareholders equity per share	42	43

Offshore/Icebreaking business area

The business area's vessels conduct operations for Arctic offshore, the offshore spot markets in the North Sea and in the global offshore sector. The fleet comprises seven offshore vessels and one new building contract with delivery at year-end. The vessels are equipped for and have the capacity to operate in Arctic areas.

Earnings for the quarter were adversely impacted by continued low rates in the spot market in the North Sea and a low degree of utilization for certain vessels. The planned upgrade of Njord Viking and clearance inwards of Odin Viking to Brazil has meant that the vessels were not fully utilized during the period and lost revenues for the two vessels is estimated at approximately SEK 14 M. Spot rates for the quarter varied between GBP 10,000 and GBP 50,000 per day.

The AHTS vessels Tor Viking and Vidar Viking operated on the offshore spot market in the North Sea in the second quarter. A surplus of AHTS vessels in the North Sea remains, but larger vessels have now left the area to conduct assignment elsewhere, resulting in an increase in rates.

At the beginning of May, Balder Viking departed on a 120-day charter assignment for Cairn Energy in Baffin Bay off the coast of Greenland at satisfactory rates. Balder Viking will carry out ice management assignments in addition to its usual supply services. The vessel is expected to return to the spot market in November.

Odin Viking completed a 15-month contract for Norskan (OGX) off the coast of Brazil and will continue to operate in the Brazilian offshore market. A new contract was signed with Shell commencing on July 1. The assignment extends over a two-month period with an additional extension option.

During the quarter, Njord Viking underwent major upgrades at the Landskrona shipyard. The vessel was equipped with a ROV hangar, LARS system and the ROV required for the charter assignment for ENI Norway that will commence in the Barents Sea at the end of July. The contract period is four years at a total value of NOK 430 M. In the interim, Njord Viking operated on the offshore spot market in the North Sea.

Loke Viking remains chartered for Statoil and the contract is valid until mid-August 2011 with the option of an additional five months.

Magne Viking was delivered at the end of July and will operate on the offshore spot market in the North Sea. The last vessel of four new builds is expected to be delivered at year-end 2011/2012. All of the shares in Arctic Ice Management AB were acquired at the end of February. The company possesses ice management technology and expertise.

The business area reported an operating result of SEK -48 M (-10) for the first six months.

	April-June			January-June
Offshore/Icebreaking	2011	2010	2011	2010	2010
Net revenue	94	39	199	66	298
Result after net financial items	-21	2	-48	-10	45
Profit margin	-22%	5%	-24%	-15%	15%

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 Sea as well as RoRo services across the Atlantic and with side port vessels traffic along the US east cost, USEC (Bulk Division) and contracted small bulk traffic in the Baltic Sea (ShortSea Bulk Division).

The shipping and logistics company Österströms was acquired as part of the initiative to develop the business area. The transaction was completed on June 8. Österströms supplements the business area with its ShortSea bulk operations and integrated logistics services. The aim of the acquisition is to increase the service offering and volumes and to increase the fleet's degree of utilization and thus enhance profitability.

The RoRo‐Baltic Division conducts scheduled services between Finland and Sweden/Germany/Belgium on three RoRo routes and a container line. During the quarter, volumes remained stable and traffic in the northern part of the Gulf of Bothnia had a high utilization degree despite a short strike held at Finnish paper mills in May. A three-year transportation agreement was signed with StoraEnso during the quarter for the transportation of paper from northern Finland to Germany, Sweden and Belgium. For this reason, a new RoRo route between northern Finland and Antwerp/Zeebrugge using two chartered vessels was launched on June 1. The commercial and operational responsibility for the TransLumi Line will be taken over from StoraEnso, which previously operated the route, on September 1. As a result of the agreement above, RoRo traffic between Kotka and Lubeck (TransSuomi Line) ceased at the end of May. The division developed positively and recorded a better result compared with the year-earlier period.

The Container Division conducts container-based scheduled service in the UK, TransPal Line, and feeder traffic, TransFeeder South. TransPal Line expanded its fleet by one vessel during the second quarter and increased the number of departures to three a week. This led to a relatively sharp increase in volumes but at slightly lower average cargo. Export volumes in the steel industry were slightly lower compared with the preceding year but import volumes remained strong. Container volumes displayed a strong trend during the second quarter. The planned relocation of the terminal from Goole in the UK to the new terminal in Hull will take place in the autumn. The new terminal in Hull is not dependent on the tides, which will provide significant operational advantages. In TransFeeder South, the high volume levels for the year with an excellent balance in traffic continued into the second quarter and larger tonnage was introduced, providing scope for continued expansion. The division achieved a better result compared with the preceding year.

The market for both the Bulk Division and ShortSea Bulk Division, which also include the Österströms operations from June 8, 2011, weakened after the winter's somewhat stronger spot market and favorable cargo flows. The market for larger bulk tonnage of westbound volumes remained subject to intense price pressure due to the low volumes compared with the tonnage supply. The continued high order intake from heavy industry will probably entail a better flow balance. Westbound traffic for magazine paper for Atlantic traffic posted improved earnings since volumes from Norske Skog picked up following the fire at a factory. Deliveries of newsprint from Canada to northern Europe continued to increase during the quarter, which led to a maintained high utilization degree. Newsprint volumes from Canada to the USEC also continued to display a positive trend, whereas traffic from Canada to the Caribbean declined due to falling volumes. The vessel Map, which had been laid up for some time, was divested during the quarter. The trend in the divisions remains negative, particularly in the bulk segment.

The business area reported an operating result of SEK -11 M (-78) for the first six months.

	April-June			January-June
Industrial Shipping	2011	2010	2011	2010	2010
Net revenue	538	492	977	949	1,865
Result after net financial items	0	-18	-11	-78	-105
Profit margin	0%	-4%	-1%	-8%	-6%

Group organization/ Ship Management

The Group organization comprises management, central administration, finance management and Ship Management. In addition to the TransAtlantic fleet, the Ship Management unit also includes assignments for external vessel owners, such as manning for the Swedish Government's five icebreakers. The decline in net sales, compared with the year-earlier period, is attributable to the external Ship Management assignment for Atlantic Container Line, which ceased in December 2010.

The decline in the operating results is attributable to higher costs in central financial administration in the form of loan expenses, mainly due to higher borrowing.

The operating result for the first six months amounted to SEK -38 M (-27).

	April-June			January-June
Group organization/Ship Management	2011	2010	2011	2010	2010
Net revenue	29	67	63	140	231
Result after net financial items	-22	-14	-38	-27	-61

Parent Group

Earnings and financial position

The Parent Company's result before tax for the period amounted to SEK 187 M (-131). Result after tax amounted to SEK 208 M (-104). The year-on-year earnings improvement was attributable to capital gains from the divestment of the owner-companies of the vessels Obbola, Östrand and Ortviken.

The Parent Company's shareholders' equity amounted to SEK 1,333 M (1,125 at December 31, 2010), total assets amounted to SEK 2,019 M (2,173 at December 31, 2010). The equity/assets ratio on the balance-sheet date was 66% (52 at December 31, 2010). Cash and cash equivalents at the end of the period was SEK 33 M (31 at December 31, 2010).

Number of shares

Share distribution at June 30, 2011 is presented below:

	2011-06-30
Share capital	554,513,500 SEK
Registered number of Series B–shares traded	51,815,429
Registered number of Series A-shares	3,635,921
Total number of shares	55,451,350

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 net deferred tax asset for the Swedish operations amounted to SEK 101 M at the end of June 2011 (40 at December 31, 2010).

The recognized deferred tax liability for the operations outside Sweden amounted to SEK 43 M at the end of June 2011 (-43 at December 31, 2010).

Transactions with closely-related parties

From June 1, 2011, TransAtlantic procured a loan of NOK 150 M from Kistefos AS. The loan, which extends to December 31, 2011, has a variable interest rates of approximately 8%. In addition, Kistefos AS has provided consulting services amounting to SEK 2,5 M for the period. There were no other significant transactions.

Risks and uncertainties

TransAtlantic is a Group characterized by a high degree of international operations, thereby being exposing to a number of operational and financial risks. TransAtlantic works actively to identify, assess and manage these risks. 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 pages 54-55 in TransAtlantic's 2010 Annual Report.

The ongoing new build's program involves payments in cash and cash equivalents in conjunction with vessel deliveries. To secure these obligations, the Group has reserved funds, pursuant to the renegotiated loan agreement, in an escrow account totaling SEK 321 M. This has been recognized together with other cash and cash equivalents.

TransAtlantic has continued the discussion pertaining to possible compensation to one of the banks' right to receive retroactive compensation in the form of increased security because the Group failed to achieve the financial covenants at the level specified in the loan agreement.

Accounting policies

This interim report was prepared, for 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 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.

Number of employees

The average number of employees in the Group for the period January- June amounted to 760 (739 at December 31, 2010). The increase in the number of employees was attributable to the addition of the Österströms Group from June 8, 2011.

Events after the close of the reporting period

The AHTS vessel Magne Viking was delivered from the shipyard in Spain at the end of July.

This information is such that TransAtlantic is obliged to publish in accordance with the Swedish Securites Market Act and/or the Swedish Financial Instruments Trading Act. The Swedish version of this report was submitted for publication at 08.30 a.m on August 4, 2011.

The Board of Directors and the CEO confirm that the half year report gives an accurate summary of the Company's and the Groups' activitities, position and results and describes the noteworthy risks and undercertainies faced by the Company and companies that are includes within the Group.

Skärhamn August 4, 2011

Chairman Deputy chairman Board member Board member

Christen Sveaas Folke Patriksson Håkan Larsson Christer Olsson

Magnus Sonnorp Åge Korsvold Christer Lindgren Rolf Skaarberg

Board member Board member Employee- CEO representative

This report has not been audited.

For further information please contact President Rolf Skaarberg, phone +46 (0)304-67 47 00

Financial calender 2011

October 27 Interim report January—September

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

Consolidated income statement

	April-June		January-June		Full year
All amounths in SEK M	2011	2010	2011	2010	2010
Net sales	661	598	1,239	1,161	2,394
Other operating revenue 1)	0	0	0	0	777
Direct voyage costs	-329	-309	-598	-613	-1,163
Personnel costs	-132	-171	-286	-362	-697
Other costs	-169	-100	-301	-207	-428
Depreciation/write-down	-90	-39	-154	-77	-428
Operating result	-59	-21	-100	-98	455
Net financial items	-14	-9	-38	-17	-48
Result before tax	-73	-30	-138	-115	407
Tax on profit/loss before the period 2)	21	74	33	156	178
RESULT FOR THE PERIOD 3)	-52	44	-105	41	585
Attributable to:
Shareholders of the company	-53	44	-106	40	584
Non-controlling interests in shareholders' equity	1	0	1	1	1
INCOME FOR THE PERIOD	-52	44	-105	41	585
Earnings per share, calculated on profit attributable to Parent Company's shareholders, per share, SEK (before and after dilution)	-0.9	1.6	-1.9	1.5	16.6

1) The amount for full-year 2010 included the effects attributable to the acquisition of Trans Vikings with SEK 775 M.

2) See section, "Corporate tax" page 9. Current tax is included with SEK-M (SEK-M). For full-year 2010 includes current tax with SEK -2 M. 3) The half-yearly earnings includes expenses of SEK 5 M for the departing President, cost in conjunction with the acquisition of Österströms amounted to SEK 3 M, expenses of SEK 5 M related to the establishment of the Danish offshore operations, a capital gain from of SEK 3 M from the sale of the Obbola, Östrand, Ortviken and Map vessels and write-downs of certain other assets The amount for full-year 2010 includes the impairment write-downs of vessels of SEK -241 M.

Consolidated statement of comprehensive income	April-June		January-June	Full year
All amounts in SEK M	2011	2010	2011	2010	2010
Result for the period	-52	44	-105	41	585
Other comprehensive income for the period:
Change in hedging reserve	-12	-4	-5	5	19
Change in translation reserve	90	-15	55	-46	-41
Total other comprehensive income for the period	78	-19	50	-41	-22
TOTAL COMPREHENSIVE FOR THE PERIOD	26	25	-55	0	563
Attributable to:
Shareholders of the parent company	25	25	-56	-1	566
Non-controlling interests in shareholders' equity	1	0	1	1	-3
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	26	25	-55	0	563

Net sale by business area

		April-June January-June			Full year
All amounts in SEK M	2011	2010	2011	2010	2010
Offshore/Icebreaking 1)	94	39	199	66	298
Industrial Shipping 1)	538	492	977	949	1,865
TOTAL BUSINESS OPERATIONS	632	531	1,176	1,015	2,163
Ship Management/Group-wide items	236	329	485	630	1,151
./. Elimineted internal sales	-207	-262	-422	-484	-920
TOTAL NET SALES	661	598	1,239	1,161	2,394

1) Internal sales missing

Result after finanical items by business area

		April-June January-June			Full year
All amounts in SEK M	2011	2010	2011	2010	2010
Offshore/Icebreaking	-21	2	-48	-10	45
Industrial Shipping	0	-18	-11	-78	-105
TOTAL—BUSINESS OPERATIONS	-21	-16	-59	-88	-60
Ship Management/Group-wide items	-22	-14	-38	-27	-61
OPERATING RESULT BEFORE TAX 1)	-43	-30	-97	-115	-121
Restructuring items 2)	-27	-	-38	-	-247
Effects on acquisition 3)	-3	-	-3	-	775
RESULT BEFORE TAX	-73	-30	-138	-115	407
Attributable to:
Minority interest in subsidaries:	1	0	1	1	1

1) Operating result: Result before tax, restructuring costs and acquisition effects.

2) The half-yearly earnings include expenses of SEK 5 M for the departing President, expenses of SEK 5 M related to the establishment of the Danish offshore operations, a capital gain of SEK 3 M from the sale of Obbola, Östrand, Ortviken and Map Vessels and write-downs of certain other assets. The amount for full-year 2010 included impairment write-downs on vessels of SEK -241 M.

3) Costs in conjunction with the aquisition of Österströms amounted to SEK 3 M. The amount for the full-year 2010 included effects attributable to acquisition of Trans Viking with SEK 775 M.

Assets by business area

Alla amounts in SEK M	2011-06-30	2010-12-31
Offshore/Icebreaking	3,500	3,158
Industrial Shipping	971	1,080
TOTAL—BUSINESS AREAS	4,471	4,238
Ship Management/Group-wide items	868	908

Consolidated balance sheet 1)

All amounts in SEK M	2011-06-30	2010-12-31
Vessels	3,940	3,815
Other tangible fixed assets	67	79
Intangible fixed assets 2)	81	12
Financial assets	186	106
Total fixed assets	4,274	4,012
Current assets	1,065	1,134
TOTAL ASSETS	5,339	5,146
Shareholders equity 3)	2,341	2,396
Long-term liabilities 4)	2,073	2,091
Current liabilities 4)	925	659
TOTAL SHAREHOLDER'S EQUITY AND LIABILITIES	5,339	5,146

1) For a descpription of the acquisition of Österströms and Arctic Ice Management, see note 1, page 18.

2) The amount includes goodwill with SEK 55 M (2). The increase is attributable to the acquisition of Österströms.

3) Non-controlling interest in shareholders' equity amounted to SEK 20 M (19).

4) The total of the Group's long-and short term interest-bearing liabilities amounts to SEK 2,382 M (2,170).

Consolidated cash-flow statement

	April-June			January-June
All amounts in SEK M	2011	2010	2011	2010	2010
Cash flow from current operations before changes in working capital	6	-9	16	-47	58
Changes in working capital	-56	87	-5	79	33
Cash flow from current operations	-50	78	11	32	91
Investing operations 1), 2), 3)	285	-90	105	-103	164
Financing operations 3)	-208	-43	-239	15	86
Change in cash equivalent continuing operations	27	-55	-123	-56	341
Cash equivalents at beginning of period	480	317	637	327	327
Exchange-rate difference in cash equivalens	16	-3	9	-12	-31
CASH EQUIVALENTS AT END OF PERIOD 4), 5)	523	259	523	259	637

1) Gross investments in the first six months of the year amounted to SEK 458 M (Q1-Q2 2010: 178, Q1-Q4 2010: 268) before financing deductions. The investments during the first six months primarily pertained to cash payment for the delivery of Njord Viking, which occurred in February 2011, as well as the acquisition of the Österströms Group and Arctic Ice Management AB (refer to Note 1, page 18).

2) The amount for the quarter includes cash and cash equivalents of SEK 25 M, which was a contribution to the Group from the acquisition of the Österströms Group. The full-year 2010 includes cash and cash equivalents of SEK 298 M, which was a contribution to the Group from the acquisition of Trans Viking.

3) The divestment of the Obbola, Östrand, Ortviken and Map vessels, which were all implemented in June 2011 contributed net liquidity of SEK 52 M to the Group after the final payment of the vessel loan.

4) The Group's current assets include cash and cash equivalents of SEK 523 M, (June 30, 2010: 259, December 31, 2010: 637). In addition, the Group has credit facilities in the form of unutilized overdraft totaling SEK 21 M (June 30, 2010: 13, December 31, 2010: 24). The utilized overdraft at the end of the quarter amounted to SEK 91 M (June 30, 2010: 87, December 31, 2010: 76).

5) Of the Group's cash and cash equivalents of SEK 523 M, SEK 321 M is reserved in an escrow account to secure the Group's cash commitments for the delivery of the two AHTS vessels, of which one of the vessels was delivered at the end of July and the last vessel will be delivered at year-end 2011/2012.

Consolidated shareholder's equity

	April-June		January-June	Full year
All amounts in SEK M	2011	2010	2011	2010	2010
Shareholders' equity at beginning of period	2,315	1,150	2,396	1,175	1,175
New share issue	-	-	-	-	658
Total comprehensive income	26	25	-55	0	563
SHAREHOLDERS' EQUITY AT END OF PERIOD 1)	2,341	1,175	2,341	1,175	2,396

Threre are no warrents of other eqiuty instruments in TransAtlantic Group.

1) Shareholders' equity includes minority interest of SEK 20 M (19).

Data per share

	April-June		January-June	Full year
All amounts in SEK M	2011	2010	2011	2010	2010
Earnings before capital expenses (EBITDA)	0.6	0.7	1.0	-0.7	25.0
Earnings before interest expenses (EBIT)	-1.1	-0.8	-1.8	-3.5	12.9
Profit after current tax	-1.3	-1.1	-2.5	-4.2	11.5
Profit after tax	-0.9	1.6	-1.9	1.5	16.6
Shareholders' equity at end of period	42.2	42.4	42.2	42.4	43.2
Operating cash flow	0.3	0.3	0.3	-1.4	23.8
Total cash flow	0.5	-2.0	-2.2	-2.0	9.6

Key data 1)

		April-June		January-June
	2011	2010	2011	2010	2010
Earnings before capital expenses (EBITDA), SEK M	31	18	54	-21	884
Earnings before interest expenses(EBIT), SEK M	-58	-21	-99	-98	455
Shareholders equity, SEK M	2,341	1,175	2,341	1,175	2,396
Net interestbearing debts, SEK M	1,859	1,125	1,859	1,125	1,533
Operating cash flow, SEK M	17	10	16	-38	841
Total cash flow, SEK M	27	-55	-123	-56	341
Return on capital employed, %	-5.0	-3,3	-4.3	-7.7	12.8
Return on shareholders equity, %	-8.8	14.7	-8.8	6.7	32.8
Interest-coverage ratio, TIMES	1.7	2.0	1.3	-0.9	16.0
Equity/assets ratio	43.9	38.2	43.9	38.2	46.6
Debt/equity ratio, %	79.4	95.7	79.4	95.7	64.0
Profit margin, %	-11.0	-5.0	-11.1	-9.9	17.0

1) Key figures are calculated in the same manner as in the most recent Annual Report and as described on page 19.

Number of shares

	April-June		January-June		Full year
Number of shares ('000)	2011	2010	2011	2010	2010
Number of outstanding shares at beginning of period	55,451	27,726	55,451	27,726	27,726
Newly issued shares	-	-	-	-	27,726
Number of outstanding shares at end of period	55,451	27,726	55,451	27,726	55,451
Number of shares held as treasury shares1)	-	705	-	705	-
Total number of shares at end of period	55,451	28,431	55,451	28,431	55,451
Avarage number of outstanding shares	55,451	27,726	55,451	27,726	35,322

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 704 800 Shares B.

Parent company income statement

	April-June			January-June
All amounts in SEK M	2011	2010	2011	2010	2010
Net sales	307	329	626	634	1,258
Other operating revenue	0	0	0	0	0
Direct voyage costs	-94	-103	-195	-206	-395
Personnel costs	-72	-67	-145	-138	-283
Other costs	-165	-198	-335	-385	-735
Depreciation/write-down	-18	-5	-20	-11	-15
Operating result	-42	-44	-69	-106	-170
Net finanical items 1)	269	0	256	-25	-65
Result before tax	227	-44	187	-131	-235
Tax on profit/loss for the period 2)	11	11	21	27	54
RESULT FOR THE PERIOD	238	-33	208	-104	-181

1) The amount for the quarter includes capital gains of SEK 26 M from the inter-Group subsidiary divestments, impairment of share holdings in subsidiaries totaling SEK 4 M, as well as capital gains from the divestment of the owner companies for the vessels Östrand, Obbola and Ortviken totaling SEK 244 M. The amount for the full-year 2010 included impairment write-downs of share holdings in subsidiaries totaling SEK 59 M.

2) The recognized amount includes only deferred tax.

Parent company balance sheet

All amounts in SEK M	2011-06-30	2010-12-31
Tangible fixed assest	28	56
Intangible fixed assets 1)	2	2
Financial assets	1,646	1,738
Total fixed assets	1,676	1,796
Current assets 2)	343	377
TOTAL ASSETS	2,019	2,173
Shareholders' equity	1,333	1,125
Provisions	31	31
Long term liabilities 3)	301	499
Current liabilities 3)	354	518
TOTAL SHAREHOLDERS' EQUITY, PROVISIONS AND LIABILITES	2,019	2,173

1) Amount includes goodwill of SEK - M (-).

2) Liquid funds are included with SEK 33 M (31).

3) The total of the parent company interest-bearing liabilities amounts to SEK 581 M (560).

Changes in Parent Company shareholder's equity

		April-June		January-June
All amounts i SEK M	2011	2010	2011	2010	2010
Shareholders equity at beginning of the period	1,095	612	1,125	683	683
New issue less issue expenses	-	-	-	-	659
Dividend	-	-	-	-	-
Group contribution	-	-	-	-	-49
Tax effect on Group contribution	-	-	-	-	13
Total earnings for the period	238	-33	208	-104	-181
SHAREHOLDERS' EQUITY AT END OF PERIOD 1)	1,333	579	1,333	579	1,125

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 704 800 Shares B.

Note 1 Company acquisition

Company:	Acquisiton date	Acquired share	No of employees	Country	Business Area
Arctic Ice Management AB	2011-02-28	100%	3		Sverige Offshore/Icebreaking
Österströms International AB	2011-06-08	100%	100		Sverige Industrial Shipping

An agreement was signed at the end of February to acquire all shares in Arctic Ice Management AB. The company possesses technology and expertise on ice management. The purchase consideration for the shares in Arctic Ice Management totaled SEK 14 M, of which SEK 4 M has been paid to date. The Group has only minor transaction expenses in connection with this acquisition. Net sales and the loss from the acquisition date amounted to between SEK 0 and SEK 1 M. If the acquired company had been wholly owned from the beginning of the year, the Group's net sales would have been SEK 0 M higher, and the consolidated income would have been SEK 0 M lower.

The acquisition of all the shares in Österströms International AB was concluded in June 2011. Österströms is the Parent Company in the Stockholm-based shipping and logistics group that conducts operations primarily in the Baltic Sea area. The purchase consideration comprised a fixed portion, SEK 40 M, and a variable portion amounting to SEK 0-40 M. The variable portion is based on the achievement of the profitability target for the 2012-2013 year in the Industrial Shipping business area. At the time of acquisition, the total purchase consideration was calculated at SEK 47 M, of which SEK 40 M was paid on the hand-over date. Any supplementary purchase consideration will be paid in 2014. Goodwill is attributable to the income improvement the company, in cooperation with TransAtlantic's current Baltic Sea effort, is anticipated to generate. Transaction expenses of SEK 3 M in connection with the acquisition will be charged against the Group's profit for the first half of 2011. Income pertaining to the acquired shares has been included in the consolidated profit and loss from the acquisition date. Net sales and income from the acquisition date amounted to SEK 64 and -3 M, respectively. If the acquired operation had been wholly owned from the beginning of the year, the Group's net sales would have been SEK 420 M higher, and the consolidated result would have been SEK 22 M higher. The preparation of the final acquisition analysis has not yet been completed, but is expected to be finalized in the third quarter.

Impact on balance sheet

	Arctic Ice	Österströms
SEK M	Management AB	International AB	Total
	-	51	51
	-	9	9
	14	3	17
	-	18	18
	14	81	95
	0	195	195
	14	276	290
	-	-88	-88
	-	-194	-194
	0	-282	-282
	14	-6	8
	-14	-47	-61
	0	53	53

Impact on the Group's cash and cash equivalents

Cash purchase consideration paid	-4	-40	-44
Acquired cash	0	25	25
Impact on the Group's cash and cash equivalents	-4	-15	-19

TransAtlantic Interim Report January-June 2011

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 efon 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 Interim Report January-June 2011

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