market report - clarksons€¦ · market report 2018 – clarksons platou project finance prologue...

MARKETREPORTShipping&Offshore

2018

PARTI–MARKET&FIGURES03Prologue&Employees

07ProjectFinanceEnvironment

08ChallengingOffshoreMarket

10TheTankerMarket

14TheContainershipMarket

16DrybulkConfidence

20ProjectsEstablished

24ProjectsConcluded

25ExisLngProjects&Segments

26FleetList2018

PARTII–CURRENTPROJECTS28AberdeenOffshoreDIS

29  AnkerShippingLtd

30AtlanLcKamsarmaxDIS

31BergshavAframaxAS

32CIT-Grieg

33CIT-Thor

34DongguanChemicalTankersDIS

35EuropeanVentureDIS

36FeederContainerIIDIS

TABLEOFCONTENTS

37  GarthcliffShippingLtd.

38GoldenKamsarDIS

39HenrieZaProductDIS

40HighYieldShippingDIS

41HomborsundContainerDIS

42IndustrialShippingDIS

43LesleyProductDIS

44MSNordstjernenDIS

45NordicHandysizeDIS

46NordicHandysizeIIDIS

47NordicHandysizeIIIASNEW

48NordicHandysizeIVHoldingASNEW

49NordicLR1ASNEW

50NordicMaxbox

51  NorthernProductDIS52  NorthernSupplyASNEW

53NorthernTankersDISNEW

54PandaChemicalIIDIS

55ParkStreetShippingLtd

56SaragolTankers1DIS

57SaragolTankers2DIS

58  SeminyakDIS

59  SouthernChemicalDIS

60StandardPSV

61SudongOffshoreDIS

62TasmanicHeavyli`DISNEW

63PlatouShipinvestIDIS

64GraphicalOverview

65HeadOffice&Contacts

DearInvestorsandBusinessAssociates,In 2018 we have seen a so` recovery in both thecontainership and drybulk market where earnings havenormalisedandreturnedtoamodest levelofprofitability.Investorswho had the courage to enter themarketwhileearnings were at OPEX levels have been rewarded by anincreaseinassetvaluesofupto50-60%fromtheboZomin2016/2017.WearenowenteringaninteresLngperiodinshippingwithnew regulaLons such as Ballast water treatment systemrequirementsandthe2020IMOSulphurCap.InaddiLontothisweobserveahistoricallyverylowfleetgrowthinmosttradiLonal segments coupled with a limited amount ofnewbuilding orders being placed. The current chartermarketbasedonnewbuildingprices is sLllunaZracLve. InaddiLon, there is limited access to aZracLve financeschemes.Manyof the tradiLonal shippingbankshave reduced theirshipping poriolios, and are focusing on serving largercorporate clients, leaving medium sized owners with fewopLonsonthefinanceside.Manybankshavealso le`thesector completely. These lenders have been replaced byprivateequitythathaveseenanopportunitytobridgethefundinggap le`by thebanks. Their costofdebt capital issignificantly higher, and is close to the ship owners owncostofequity.AlternaLve financing soluLons such as the NorwegianProjectFinancemarketwill remainan importantsourceoffinance for all sizes of ship owning companies. Theinvestment structure is flexible, either through equity co-investmentsorsaleleasebackstructuresthatallowsownersto either refinance exisLng debt or take advantage of theopportuniLesinthecurrentlowcycleenvironment.2017 was one of themost acLve years in the NorwegianProjectFinancemarketpost2008withatotalof76vessels(~USD1.2Bn)financedbyClarksonsPlatou,Fearnleys,NRPandPareto.We expect to see a conLnuaLon of this development asmanyof thedealsdone in2017are repeatdealswith thesame ship owners having established a good track recordand reputaLon with Norwegian investors. The market isalsoopenforownerswithinteresLnginvestmentproposals,lookingforNorwegianco-investors.We see opportuniLes in most of the segments goingforward given the above menLoned factors, limiLng thesupply side growth. The following paragraphs contains abrief overview of our thoughts over next year for thevariousshippingsegments.

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MARKETREPORT2018–CLARKSONSPLATOUPROJECTFINANCE

PROLOGUEDrybulkAcross most sizes, except for Handysize bulkers, we haveseen 2nd hand asset values return to newbuilding parity.Furthermore,earningsareata levelwhereit ispossibletoreturnequitytoinvestorsa`erOpexandfinancecosts.Thecurrent FFA market is pricing Q3 and Q4 at a premiumcompared to todays freight rates. We anLcipate that thefocuswillshi`fromassetplayovertoyieldstructureswithlongertermemployment.We anLcipate to see more structured transacLons indrybulk over the next 12 months. Either through plainvanillasaleleasebacksorstructureswithupsidesharing.ContainervesselsSimilartothedrybulkmarket,thefeedercontainersegmenthasrecoveredfromtheboZomlevelsinQ42016.WebelievetherearemoreinteresLngopportuniLesinthissegment going forward in terms of selecLve asset play aswellasstructuredyieldprojects.OffshoreSince2016wehavebuilt upafleetof9mediumsizePSVvessels together with Fletcher Shipping and StandardDrilling. The commondenominator in this fleet is that thevessels were all purchased from distressed situaLon with100% equity. In 2018 we hope to conLnue posiLoningourselves for recovery and securing modern and goodassetsattodayslowprices.TankersWeanLcipate that the2ndhalfof2018willbechallengingfor both crude and product tankers. However, we arestarLng to see interesLng opportuniLes as asset valueshavedropped substanLallyover the last year. Weexpectthat therewillbe interesLngassetplayopportuniLesoverthenext6monthsboth forolder vintage tonnageand formoremoderntonnage.Kindregards,ClarksonsPlatouProjectFinance

CLARKSONSPLATOUPROJECTFINANCEClarksons Platou Project Finance AS has since its incepLon in2004 become one of the world’s major project financecompanies that specialize in shipping and offshore relatedfinancial schemes in the interest of both shipowners andfinancialinvestors.The main objecLve is to idenLfy aZracLve investmentopportuniLes, which involve the purchase of shipping andoffshorerelatedassetsalongwithsecuredemployment,aswellas present asset play cases when the Lming is opLmal. ThestrengthofClarksonsPlatouProjectFinance liesnotonlywiththehighlyqualifiedstaff,butalsowiththevastshippingrelatedresourcesavailablewithintheClarksonsPlatouGroup.Clarksons Platou Project Finance is an independent companywithintheClarksonsPlatouGroupuLlizingthefullpotenLalofhaving close contact with shipbrokers, shipowners, shipmanagers,bankers,lawyersandconsultantsworldwide.CLARKSONSPLATOUPROJECTSALESInlate2014,ClarksonsPlatouProjectFinanceestablishedanewdivisiondesignatedtosourcingequityandincreasingliquidityofproject shares in the second handmarket. The new focus onsaleswill allow us to further increase our project acLvity anddeal size. The teamconsistsof fourbrokersanda complianceofficer. Increasing the liquidity in the secondhandmarketwillprovideaddedvaluetoourexisLnginvestorsandopportuniLesfornewinvestorstoenterexisLngprojects.

CLARKSONSPLATOUREALESTATEClarksons Platou Real Estate AS is one of the leadingplayerswithinNorwegianrealestateprojectfinance.Thecompany is a fully integrated real estate corporatefinance house specialized in sourcing, structuring andfacilitaLng commercial real estate. The company’sgeographicalfocusisontheNorwegianandSwedishrealestatemarket.Thecompany’scoreacLviLesare:v  OriginaLonofinteresLngfinancialestate

opportuniLesv  Structuringandrestructuringofrealestateprojectsv  StructuringofdevelopmentandopportunisLc

projectsv  Projectfinancingofrealestateprojectsv  CorporatefinanceassisLngwithinthecommercial

sectorv  Assetmanagement

CLARKSONSPLATOUPROPERTYMANAGEMENTClarksons Platou Property Management AS is aprofessional manager and developer of industrial andcommercial real estate. The company offers highlyqualified services within all types of management forsophisLcatedrealestateinvestors,tenantsandsuppliers.The company’s main focus is to contribute to valuecreaLonfortheinvestorsandthepropertyitselfbybeinghands-onthroughoutthelifespanoftheinvestment.Thecompany’scoreacLviLesare:v  Technicalmanagementv  TenantrelaLonshipmanagementv  Leqngandcommercialmanagementv  CorporatemanagementandreporLngv  BuildingoperaLonsandmaintenancev  Realestatedevelopment

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5

CLARKSONSPLATOUPROJECTFINANCE

PROJECTSALES

PROJECTFINANCE

LARSGJERDESeniorBroker

STIANSKAUG-PAULSENSeniorBroker

ANDREASW.BANGHeadofSales

AXELMOLTZAUAASJointManagingPartner

CHRIS.W.SVENSSONJointManagingPartner

TRULSWIESEKOLSTADSeniorBroker

TRONDHAMRESeniorPartner

BENJAMINRYENG-HANSENManagingDirector

HEIDIMEYERWESTBYOfficeManager

ERIKKRISTIANANDRESENCorporateManager

ELISABETHRELBOSecretary

EVALISEBJERKECorporateManager

STEFFENLILLENGBroker

LINEC.AUGELIHeadofCompliance

MAGNUSBURAASCorporateManager

MARIANNEKNUDSENCorporateManager


ProjectFinanceAdvantages:Directinvestments,cleanandlowcoststructureswithhighdegreeofinvestorcontrol

Lowerrunningcoststhanstock-listedalterna[ves:   

 

UncomplicatedandRobustCapitalStructures:  5  

 

  Directinvestmentintotheassets: 

 

 

 

   

5

ClarksonsPlatouProjectFinance–CapitalRaised TD

5

5 6 5 6

Millions

AccumulatedTransac[on olume


OffshoreMarketcondiLonsintheoffshoresegmentremainchallenging,butwehavestartedtoseesomeposiLvesignals,mostnotablyincreasingrigtenderingacLvityandastrongvolumeincreaseinordersforsubseaequipmentandFloaLngProducLonUnits.ThiscorrespondswithincreasingsancLoningofnewfielddevelopments.AlbeitsLllatalowlevel,thishaspickedupnotablyfromlevelsseenin2015,2016and2017.WehavealsoseenanupLckintermcontracLngandtenderingforPSVsintheNorthSea,alsodrivingthedayratesupsomewhat,whichcouldperhapsbeanearlyindicatorofimprovingmarketcondiLonsforthebroaderOSV-segment.Finally,therehasbeensomeimprovementinthesecond-handtransacLonmarketwithnotablejackupandfloatertransacLons,aswellasincreasingM&AacLvitywithintherig-andOSV-segments.OSVandSubsea2ndhandtransacLonsarealsoontherise.EventhoughtheseareposiLvesignalsthatcouldindicatethatOffshoreisabouttorecoverintermsofacLvity,overcapacityintheasset-heavysegmentsremainssignificant.Consequently,uLlizaLonandratesgenerallyremainatlowlevels.WeexpectaconLnuedgradualimprovementinoffshoreacLvitygoingforward,butmostlikely,itwillsLlltakesignificantLmetorebalancetheassetsegmentsinordertoseemoresustainableuLlisaLonandratelevels.TheOffshoreDrillingRigMarketTotaloffshorerigdemandseemstohaveboZomedearlyin2017,andweexpectdemandtoincreasegraduallythroughoutthecurrentyear.Today,theglobaloffshorerigcount(rigsoncontract)standsat441units,marginallyupfromtroughlevelsofaround425units.Adeeperanalysisoftherigmarketdisplayssignificantregionalandsubsegmentvariances.Inshallowwater,weseeincreasedrigdemandinAsiaandWestAfrica,andstabledemandintheMiddleEast,theNorthSeaandMexico.FortheDW/UDWfloatersegment,weseeindicaLonsofdemandgrowthinUSGoM,IndiaandAsia.TheNorthSeaHarshEnvironment(HE)semi-submarketfurtherstandsoutasasomewhatspecialcase.ThesegmenthasalreadyLghtenedsignificantlyonbackofmoderatedemandincreaseandsupplysideaZriLon.Consequently,dayratesinthissegmenthavegenerallydoubledfromtroughlevels,andHE-focusedplayershavepickedupalloftheHEsemisstrandedatyardsinAsia,thelatestbyOdsellforUSDm505.Indeeperwaters,WestAfricaandBrazilontheotherhandsLllseemtobelaggingintermsofrecovery,thoughwehaveseensomeposiLveindicaLonsduringthefirsthalfof2018fordrillingrequirementsin2019and2020.IntermsofotherassettransacLons,wehavealsoseenasignificantvolumeofhighspecJUtransacLons,inparLculardrivenbynewcomerBorrDrilling.Finally,wehavebeguntoseeanincreasingtrendtowardsacquisiLonsofstrandedUDWfloatersfromshipyards.

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Offshore,higheroilpriceandimprovingsen[ment

RebalancingofthebroaderrigmarketfurtherconLnuestoprogressonbackoflowuLlizaLonandrates,financialstressandcontractors’realizaLonoftheneedtoreducecapacityacrosstheindustry.Assuch,contractorshavereLredmorethan30%ofthetotalfloaterfleetsincethedownturnstartedinlate2014.WeexpectthereLrementtrendtoconLnueastheindustryissLlllookingtocutcosts.ReLrementofassetsinthejackupsegmenthasbeenlesspronouncedforseveralreasons,andunlessthispicksup,rebalancingofthejackupsegmentmaylikelybepushedfurtheroutinLme.TheSubsea&FieldDevelopmentMarketSancLoningofnewoffshorefielddevelopmentshasconLnuedtoseeanotableupLcksofarin2018comparedto2015,2016and2017.ProvidedoilpricesremainrelaLvelystableforward,weexpectthistrendtoconLnue.SubseaequipmentawardstotheindustrylikelyboZomedin2016withalowlevelof83Christmastreesawarded(eachsubseawellrequiresasubseaChristmastree).Thiscomparestoanannualaveragelevelof324since2000and153treesin2015.For2017,204Christmastreeswereawardedtothesubseaequipmentindustry,i.e.morethanadoublingfromthelevelseenin2016.CorrespondingpicturecanbeobservedintermsofcontractsfornewFloaLngProducLonUnits.EquipmentmanufacturingleadLmeshoweverimplythatthisequipmentwillbeinstalledoffshorefrom2019andbeyond,whichiswhenmajorityofactualoffshore/subseaacLvitywilltakeplace.ThisimpliesthatfleetuLlizaLonacrossthesubseasegmentislikelytoremainsubduedatleastthrough2018andinto2019atleast.However,thebacklogforthelargestsubseaEPCcontractorsimprovedslightlyin2017andislikelytoseefurtherimprovementthrough2018.


Subseamaintenanceworkcouldalsopickupinthenearertermfuture,supporLngsomewhathighervesselacLvityinthesector.TheoffshorewindspaceintheNorthSeaisalsocreaLngnewdemandforsubseatonnage,andsomesubseasegmentswillachievedecentuLlisaLonduringthesummerseasonof2018intheNorthSea,asoil&gasandoffshorewindplayerscompeteforthesametonnage.Limitednewbuildingshavebeenplacedoverthelastthreeyearswithinthesubseasegment,butweexpectthelevelofnewbuildstopotenLallyseeamarginalupLckgoingforward,incasedrivenbyspecializedvessels.OffshoreServiceVessels(OSV:PSVandAHTS)ThemarketforOSVsremainschallenging,characterisedbysignificantvesselovercapacity,lowuLlizaLonanddayratesaroundthelevelofoperaLngexpensesforthevesselsinmostregions.GlobalfleetuLlisaLon(alsotakingintoaccountstackedvessels)forlargeOSVsiscurrentlyaround61-65%(AHTSandPSVrespecLvely),whileacLveuLlisaLonlevelsinsomeregionsnaturallyremainsubstanLallyhigher(77-85%globallyforAHTSandPSVrespecLvely).IntheseseveremarketcondiLons,mostorallvesseloperatorsarestrugglingsignificantly,andwehaveconLnuedtowitnesshighcorporateacLvityintermsofrefinancing,restructuringandconsolidaLon.SomeoftheUSplayershavealsomanagedtoreducetheirdebtsubstanLallyasaresultoftheseprocesses,makingthemmorecompeLLvegoingforward.IncreasedconsolidaLonandsignificantvesselaZriLonbodeswellforthelongertermrebalancingofthesegment,butonbackofthesubstanLalovercapacity,weanLcipatearecoverytomoresustainabledayratelevelstosLllbeseveralyearsout.Asforrigs,regionaldifferencesdoapply,andrateshavecomeupslightlyalreadye.g.intheNorthSeawherebothspotandtermrateshavecomeupnoteworthyfromtroughlevels.


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Subseamaintenanceworkcouldalsopickupinthenearertermfuture,supporLngsomewhathighervesselacLvityinthesector.TheoffshorewindspaceintheNorthSeaisalsocreaLngnewdemandforsubseatonnage,andsomesubseasegmentswillachievedecentuLlisaLonduringthesummerseasonof2018intheNorthSea,asoil&gasandoffshorewindplayerscompeteforthesametonnage.Limitednewbuildingshavebeenplacedoverthelastthreeyearswithinthesubseasegment,butweexpectthelevelofnewbuildstopotenLallyseeamarginalupLckgoingforward,incasedrivenbyspecializedvessels.OffshoreServiceVessels(OSV:PSVandAHTS)ThemarketforOSVsremainschallenging,characterisedbysignificantvesselovercapacity,lowuLlizaLonanddayratesaroundthelevelofoperaLngexpensesforthevesselsinmostregions.GlobalfleetuLlisaLon(alsotakingintoaccountstackedvessels)forlargeOSVsiscurrentlyaround61-65%(AHTSandPSVrespecLvely),whileacLveuLlisaLonlevelsinsomeregionsnaturallyremainsubstanLallyhigher(77-85%globallyforAHTSandPSVrespecLvely).IntheseseveremarketcondiLons,mostorallvesseloperatorsarestrugglingsignificantly,andwehaveconLnuedtowitnesshighcorporateacLvityintermsofrefinancing,restructuringandconsolidaLon.SomeoftheUSplayershavealsomanagedtoreducetheirdebtsubstanLallyasaresultoftheseprocesses,makingthemmorecompeLLvegoingforward.IncreasedconsolidaLonandsignificantvesselaZriLonbodeswellforthelongertermrebalancingofthesegment,butonbackofthesubstanLalovercapacity,weanLcipatearecoverytomoresustainabledayratelevelstosLllbeseveralyearsout.Asforrigs,regionaldifferencesdoapply,andrateshavecomeupslightlyalreadye.g.intheNorthSeawherebothspotandtermrateshavecomeupnoteworthyfromtroughlevels.


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Crudetankerearningsfellfurtherinthefirsteightmonthsof2018asthecombinaLonofstrongvoluntarycompliancewithOPECandnon-OPECproducLoncutsandaddiLonalinvoluntaryoutputreducLonsaffectedvesseldemand.OurassessedweightedaverageearningsforVLCCsinthisperioddeclinedby47%comparedtoayearago,whileassessedaverageearningsforSuezmaxesandAframaxeswerebothdownby21%and12%respecLvely.AssessedearningsforLR2andLR1productstankersonthebenchmarkMiddleEasttoFarEastroutedeclinedby2%and8%,respecLvely,againstthesameperiodin2017,whileassessedaveragecleanMRearningsdeclinedby20%.Aspateofnewlydeliveredcrudeoiltankerspickingupoilproductcargoesfortheirfirstvoyageonlong-hauljourneystotheAtlanLcBasinandmoreUSexportsheadingshort-haulbecauseofnarrowpricespreadscontributedtothelowerearnings.FleetgrowthlevellingoffThe low level of earnings, relaLvely high demoliLon pricesand trading restricLons for older vessels all contributed tolarge numbers of tankers being removed from the fleet inthe first half of 2018. This meant that the average crudetankerfleetsizegrewby3.2%YoY,whiledemoliLonandlowlevelsofdeliveriesconstrainedproductstankerfleetgrowthto 3.5% YoY compared to the first half of 2017. Combinedthetotaltankerfleetincreasedby3.3%YoYinthisperiod.

TheTankerMarket2018,theonlywayisup…


Slow tonnage demand growth in the first half 2018Preliminary esLmates for seaborne crude trade showsimilar levels for the first eight months of this yearcompared to the same period in 2017. Asia increasedimports,predominantlyintoChinaandIndia,whilean8%decline in imports came in the USA and also Europelowered its imports during this period. However, due toanincreaseintransportdistanceasmorecrudefounditsway from the AtlanLc basin to East of Suez, tonmiledemandforcrudecarriersgrewby1% inthefirsthalfoftheyear.EsLmates for oil products trade in the first half of 2018indicate a 3% hike in seaborne trade. A surge in SaudiArabiangasoline,dieseland fueloil importswasamajorcontributorand imports intoNorthAmericahelped raiseseabornetrade.ApartfromChina,MalaysiaandThailandoilproductimportsintoAsiaslowedduringthisperiod,aswas the case forEurope. Ifweaccount foranesLmatedshorter sailing distance, the ton-mile demand for oilproducts increased by 1% YoY during this six-monthperiod.According toouresLmates the ton-miledemandfor the total tanker fleet, i.e. crude and clean carrierscombined,grewby1%YoYinthefirstsixmonthsof2018.Due to cutbacks in OPEC producLon and supplydisrupLons, the oil market has become anxious aboutspare producLon capacity and oil prices have been inbackwardaLon. The subsequent stock draw has sent anumber of floaLng storage vessels back into acLvetrading. Indwtterms,wehaveregisteredacloseto40%YoY reducLon in floaLng storage during the first half ofthe year, leaving only about 80 million bbls le` ononboardtankers.Thishasfurtherweakenedthedemandfor tankers by an esLmated1.5%YoY in thefirst half of2018.AdjusLng for a small improvement inproducLvity,wehavecalculatedfirsthalf2018tankerdemandgrowthto-0.5%YoY.

Thedemandsideofthemarketappearstobedevelopinginasimilar way to 2017, with strong growth in Chinese crudeimports once again expected to be the key driver. China’sindependent refiners have been granted significantlyincreasedcrudeimportquotasin2018andthisisexpectedtoleadtostrongimportgrowthonceagain.AgreatervolumeofChina’s crude import will transit overland in 2018 however,following the expansion of the ESPO spur line into northernChina.China’simportgrowthisexpectedtobesupplementedbyaddiLonalimportsintoVietnamoncethenew200,000bpdrefinerycommencesoperaLonslaterintheyear.With OPEC producLon cuts expected to restrain MiddleEasternshipments,addiLonalvolumesshouldonceagainflowon long-haul voyages from the AtlanLc Basin, in parLcularfrom the United States, Brazil and Kazakhstan where oilproducLon is due to increase. These long-haulWest to Eastflowsareonceagainexpected togenerate significant tonne-milegrowthTheprospects for thecrudetankermarketarebrighter from2019,whenfleet growth is expected to slow further and re-balancingof theoilmarketsandhigherpricesshould leadtorestoraLon of some or all of the crude oil output that iscurrentlyshutdownbybothOPECandnon-OPECproducers.Fleet demographics also point to the potenLal for a moresustained upturn as significant numbers of vessels are nowapproaching20yearsofage.WehavealsoseenanumberofvesselssoldfordemoliLonat18and19yearsofageinrecentmonths,indicaLngthatownersarenowwillingtodivestoldervessels ingreaternumbersandatyoungerages, incenLvizedbythehigherscrappricesonoffer.

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TankermarketsettoimprovefromnowonThedemandforoilisexpectedtopickupfurtherinthesecondhalfof2018inlinewiththeusualseasonaltrendtoreach1.4%YoYaccordingtotheIEA.TheyfurtherexpectaconLnuedincreaseinNorthAmericandemand,albeitatalowerlevelthanthefirsthalf,butadeclineforotherOECDcountries.ThemaindriverofoildemandwillonceagainbeAsia.Asiaremainsinthedriver’sseatandoildemandgrowthisprojectedtogrowatthesame1.4%pacein2019beforeslackeningto1.1mb/dgrowthin2020.NewoilproducLontosaLsfythegrowingdemandisexpectedtomainlycomefromtheAmericas;theUS,CanadaandBrazil.The“CallonOPEC”shouldthusremainataroundthecurrentproducLonlevelof32mb/dthroughout2020,weargue.WhetherOPECisabletoaccommodatesuchalevelremainstobeseen.AsmenLonedabove,VenezuelaisstrugglingtokeepoilproducLonfromfurtherdeclinesandmayreacha1mb/dlevelalreadybytheendofthisyear,afurtherdropof0.3–0.4mb/dfromtheproducLonlevelinAugust.Libyahasalsoproventobeanunstablesupplierduetothecountry’spoliLcalunrestandIraniswidelyexpectedtosufferfromtheUSsancLonscomingintoforceinearlyNovemberofthisyear.WehavealreadyseenIranianexportsdown0.3mb/dinAugustasbuyersareavoidingtheircrudeoilinfearofretaliaLonfromtheUS.OPEChaspledgedtoreplacelostIranianvolumesandshouldIranrepeatthebehaviourfromthelastLmetheywereundersancLons,anumberofVLCCswillbeusedforfloaLngstorage.Atthepeakin2015,wecountedmorethan20NITCVLCCsLedupinstorage.Iflostbarrelsarereplaced,thestorageplaywilllikelyhaveaposiLveeffectontonnagedemand.

Basedontheabove,webelievetherewillberoomforhealthygrowthinseabornecrudetrade.Oneimportantdriverwillalsobelongertransportdistance.AsignificantpartofnewproducLoniscomingfromtheAtlanLcBasin,whilenewrefinerycapacityiscomingfromEastoftheSuezandwilllikelyresultinagrowingcrudedeficitinthisregion.Higherdemandforoilandthusincreasedrefinerythroughputwillalsodrivegrowthinseabornetradeofoilproducts.

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MarketReport2018–CLARKSONSPLATOUPROJECTFINANCE

The Container Ship Market – fundamentals graduallyimprovingAèrasoèrperiodoverthesummermonths,spot freightrateshavefirmedlatelyoncertaintradelanes.Thestrongestincrease has been noLced on the Trans Pacific route fromAsia to the East Coast of America, where box rates havejumpednearly60%sinceJune.OntheAsiatoEuroperoute,a 10% increase has been registered. On the North/Southtrades and also most Intra Asia routes only small changeswerenoLced. Aèr a posiLve first half of this year, the charter marketeasedbackaliZleinJuly/Augustformostsizes.OnarelaLvebasis, the larger charter ships have experienced the mostsignificantdrop.The12monthcharterratefora6,800TEUunit decreased more than 10%, while for smaller sizes, atypically5–10%reducLonhasbeenreported..FleetgrowthIn thefirsthalfof thisyear,0.85millTEUofnewcontainership capacity entered operaLon. Themajority of deliverieswereinlargesizes.Removalsamountedtoonly34,000TEU.Themajorpartofthistonnagewereshipswithacapacityofless than 1000 TEU. The average age of ships sold forrecyclingwas 25 years,which is up from an average of 21yearsin2017.Theaveragesizeofthecellularcontainershipsexpanded by 6.5 percent compared with the first half lastyear.Fromthestartof thisyear, thefleetexpandedby3.9percent. The fleet increase has mainly been in the sizesabove 10,000 TEU. During the last 12months, the cellularfleet above 10,000 TEU has increased by 27 percent. Forships between 5,000 and 10,000 TEU, the size of the fleetshrank by 1.5 percent, while the fleet between 1000 and5000 TEU, expanded only 1.0 percent. Per July 1, the idlecapacitywascurrentlylessthan2percentofthefleet.

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TheContainerShipMarket–Demandgrowthsurpassessupplygrowth

MarketprospectsGlobalcontainerizedtradewilltoalargeextentbedrivenbyeconomic acLvity. Historically, nearly 90 of the annualchanges in container trade can be explained by the yearlygrowthrateinworldGDP. In2017,thefactorwas1.4andsofarthisyear,thefactorisslightlyabove1.0.BasedonthelatestforecastforworldGDPin2018through2020,weexpectthecontainertradefactortoworldGDPtobe 1.3, which should correspond with some 5 percentgrowthp.a.incontainervolumes.Inthisscenario,weexpectthe world economy to increase by slightly less than 4percentperannum.On a regional basis, the most important trade lane in thecontainermarket,measuredinTEU-miles,isAsiatoEurope.Going forward, containerized imports are forecasted togradually elevate on the background of firm economiccondiLons. The US container imports should also seeconLnued growth, although the growth rate might slowsomewhatcomparedwiththelastyear.Trade growth within Asia is likely to recover gradually.Chinese import growth is expected to remain subdueddueto forecastedmoderateeconomicgrowth.However,withinother Asian countries, stronger economic acLvity shouldsupport containerized imports. Indian economicperformance is forecasted to remainsteady. LaLnAmerica,Africa and Eastern Europe are expected to see a gradualeconomic recovery, which should bode well for increasedcontainerizedimportsintheyearstocome.


FleettrendWeesLmateabout1.2millTEUofnewtonnagetocommenceoperaLonthisyear.In2019,thedeliveryprogramis1millTEU,butactualdeliveriesmightbeslightlylowerduetoslippage.Averylargepartofthenewshipsenteringserviceoverthenextyears are within the largest size categories. This will conLnue to generate a cascading effect onto other trades, but thetonnagebalancewithinthefeedersizeswillalsobecomeLghter.Thisyear,weesLmatescrappingtobe0.2millTEUandin2019and2020onlyslightlyhigher.NewIMOrulesarelikelytohavesomeimpactonscrapping.Onthehorizonto2020,modernfuelefficientshipswillhaveagreatcompeLLveadvantagewiththeenforcementofthenewlow-sulphurfueloilrules.Wewillhowever,underlinethatthemaindriverforscrappingwillbethemarket profitability.The net fleet expansion is expected to be 4.7 percent this year, followed by 4.5 percent and 3.5percentin2019and2020,respecLvely.ConclusionOnthisbasis,afleetgrowthintherangeof3.5percentand4.7percentp.a.combinedwithabout5percentp.a.increaseintonnagedemandshouldresultinagradualrecoveryinmarketfundamentalsintheyearstocome.ThemainupsidepotenLalinthissectorisfasterthanexpectedeconomicrecovery,especiallyintheemergingmarkets.Thesurgeinrecoverywillsignificantlyboostgrowthintonnagedemand.AdownsideriskwillbeamoreprotecLveUStradepolicywhichcouldnegaLvelyaffecttheworldtradeandtherebyalsohaveanegaLveimpactontonnagedemand.Inordertoimproveprofitability,inaddiLontoreducingoperaLngcosts,containercarriersmayundergoanadjustmentinthesizeoftheoperaLngfleet.Thiscanbedonethroughhigherscrapping,moreidlingandwithdrawalsofcapacityinlowvolumeseasons.

15


FundamentalssteadilyimprovingDryBulkearningshaveingeneralbeenfairlysteadysofarthisyear,apartfromtheCapesizesectorwherewesawstrongvolaLlity.However,freightlevelshavebeensignificantlyhigherthanlastyear.Duringthefirsthalfofthisyear,averageearnings,dependingonsegments,havebeenbetween25and30percenthigherthaninthecomparableperiodlastyear.Periodrateshavealsoappreciatedandmostoftheperiodtheyhavebeenhigherthanspotrates.StrongtradegrowthYeartodatestaLsLcssuggestDryBulktradetohaveincreasedaround3percentcomparedwiththesameperiodlastyear.RealtonnagedemandisesLmatedtohaveincreasedsomewhatfasterduetolongerdistances,andincreasingballasLngfactoretc.Chinesedrybulkimportsrose4.2percent.AmongtherespecLvecommodiLes,weregistereda1.6percentdropinironoreimports,a9percentjumpincoalimportswhileagroupofothercommodiLeselevated7percent.Amongothercountries,wenoLcedasignificantdropinBrazilianferLlizersimports.Onthecontrary,coalimportstoS.Korea,Philippines,Thailand,VietnamandMalaysiasawintotalasignificantincrease,mainlydrivenbyexpandingcapacityincoalfiredpowerplants.Indiancoalimportshavealsorecovereda`ertwoyearsofdecline.Yeartodatevolumesareupmorethan10milltonscomparedwiththesameperiodlastyear.Inironore,theglobaltradeseemstohavebeenbasicallyunchangedasmostcountrieshaveimportedmoreorlessthesamevolumesasinthesameperiodlastyear..Globaltradeingrainsandsoybeanclimbednearly4percent.ImportstotheAsianregionwereintotalupalmost5percent.China’ssoybeanimportswerebasicallyunchanged,whileimportstoTheMiddleEastregionwereelevatedby2percent.WealsonoLcedhighervolumestoAfricaand,Europe.SeabornetransportaLonofminorbulkincreasedbyaround3percent.WenoLcedaconLnuedstronggrowthinscrapmetalsimportstoTurkey,whiletheglobalsteeltradeonlywentupmarginally.Otherwise,bauxiteandnickeloreimportstoChinaincreasedsignificantly.InothercommodiLesweregisteredonlymoderatechangescomparedwiththesameperiodlastyear.

16

Drybulk–Freightmarketandvaluesintheprocessofnormalising


17

FleettrendYeartodatefiguressuggestdeliveriesofnewshipstohavebeen20milldwt.Removalstotaledonly2.8milldwt.Theaveragesizeofthefleetwasthereby2.4%largerthaninthesameperiodlastyear.Sincethestartofthisyear,thefleethasbeenenlargedby2.2%.MarketprospectsTheworldeconomyispredictedtoperformrelaLvelywelloverthecomingyears.OnedownsiderisktothisscenariowillbemounLngtradetariffsoncertaincommodiLes.AlonglasLngtradewarwilloverLmeresultinincreasinginflaLonandhigherinterestrates.However,themostimportantfactorforDryBulkdemandwillbeChina’seconomicperformanceandinparLcularChina’simportrequirementsforironoreandcoal.China’sdomesLcsteeldemandisexpectedtoincreaserelaLvelyslowlyoverthecomingyears.Inordertomaintainthecurrentsteeloutputlevel,Chinaneedstomaintainthecurrenthighvolumesofsteelexports.Webelieve,ChinesesteelexportswillbestronglysupportedbyChineseforeigninvestmentsincountrieswhichdonothavesufficientdomesLcsteelproducLoncapaciLes.


Chineseironoreimportrequirementswill,inaddiLon,tothesteeloutputlevelalsobeaffectedbythepacedomesLchighcostironorecapacitywillbephasedout.ThestrongsteelmarginsforsteelproducersarealsosupporLnghighqualityironoredemandwhichreducestheenergyuseandtherebylocalpolluLon.NewValecapacitybecomingoperaLonaloverthenextcomingyearsisofhighqualityandtherebyaZracLveforChinesesteelmakers.ThisshouldbodewellforafurtherelevaLonoflonghaulironoreimportsinthecomingyears.ChineseconsumpLonofcoalisexpectedtoincreasemoderatelyoverthenextyear.Coal’sshareintheenergymixisexpectedtoremainhigherthanearlierforecastedbecausetheexpansionofhydropowercapacitywillbemodest.Eventhoughotherenergysourceswillexpandtheircapacitysignificantly,theywillprobablynotexpandfastenoughtomeettheexpectedgrowthinenergydemand.Theofficialenergyplansuggeststhatcoalburningpowercapacitywillbeenlargedbyroughly2-3percentperyearupto2020.FuturecoalimportswillthereforetoalargeextentbedeterminedbyhowmuchcoalChinawillprocuredomesLcally.EventhoughsomenewcoalproducLoncapacitywillbecomeoperaLonalinthecomingyears,theoverallChinesecoalminingcapacitywillprobablyincreaseonlymoderatelybecauseolder,unprofitablemineswillbecloseddown.Therefore,coalimportsshouldatleastremainstable,butmostprobablyincreasesubjecttoaconLnuedelevaLonofdomesLccoalconsumpLon.

Newfuelregula[onsin2020

5 6 5

5

5

Conclusion

ThemajordownsideriskswillbeChina seconomicgrowth.AslowdowninChineseinvestmentsinproper[esetc.willpoten[allyimpactdrybulkdemandnega[velyintermsofslowergrowthindrybulkimports.Alonglas[ngtradewarwillmostlikelyimpacttheworldeconomynega[velyandconse uentlyalsoaffecttonnagedemandnega[vely.


THEPROJECTPORTFOLIOSUMMAR

20

PROJECTSESTABLISHED2004 NO.OFVSLS. ESTABLISHED CURRENCY TOTALPROJECTPRICE PAIDINCAPITALUNCALLEDCAPITAL

TOTALCOMMITTEDCAPITAL

Aries(Ugelstad)SupplyIKS 1 April2004 NOK 201046770 42300000 15000000 57300000RossCapeDIS 1 October2004 USD 17350000 3850000 1000000 4850000InternaLonalContainerShipsKS 2 November2004 USD 66260000 12260000 4150000 16410000J.B.UOBOIKS 1 December2004 USD 36580000 7780000 5000000 12780000

No.ofvessels 5 TotalNOK 201046770 42300000 15000000 57300000No.ofprojects 4 TotalUSD 120190000 23890000 10150000 34040000

TotalEUR 0 0 0



EidsivaTruckerKS 1 February2005 EUR 10900000 2470000 2000000 4470000MountFaberKS 4 April2005 USD 80900000 13325000 13325000NorwegianShippingDIS PORTFOLIO April2005 USD 19200000 13700000 5500000 19200000GoliatRoroKS 1 May2005 EUR 9000000 1960000 1500000 3460000GlobalCableKS 2 June2005 USD 12320000 2870000 3000000 5870000BergshavChemicalKS 2 July2005 EUR 20470000 4470000 2200000 6670000VolstadSupplyIKS 1 August2005 NOK 262620000 75050000 20000000 95050000ScandinavianBulkersKS 5 September2005 EUR 28926000 6776000 6000000 12776000VolstadSupplyIIKS 1 November2005 NOK 262620000 75050000 20000000 95050000AgderOceanReeferKS 3 November2005 USD 27750000 6150000 6150000CelineIOBODIS 1 November2005 USD 12470000 1970000 3000000 4970000CementShipIIDIS 1 November2005 USD 19800000 5575000 4000000 9575000MulLpurposeBulkersDIS 4 December2005 EUR 27145000 4695000 4500000 9195000SBSTempestKS 1 December2005 NOK 134300000 29300000 10000000 39300000SBSTorrentKS 1 December2005 NOK 141175000 31975000 10000000 41975000GreenPacificDIS 3 December2005 USD 30590000 6090000 8000000 14090000


TotalEUR 96441000 20371000 16200000 36571000



NorwegianShippingIIDIS PORTFOLIO January2006 USD 8000000 5200000 2800000 8000000SBSTyphoonKS 1 January2006 NOK 167050000 36650000 25000000 61650000JapanOffshoreDIS 3 April2006 USD 37150000 8150000 3000000 11150000Aries(Ugelstad)SupplyIIKS 1 April2006 NOK 155000000 33000000 21000000 54000000EuropeanVentureDIS 2 April2006 USD 46325000 9965000 5000000 14965000NFCOffshoreDIS 4 April2006 USD 74500000 24480000 8000000 32480000OceanlinkOffshoreDIS 1 May2006 USD 13250000 2750000 2500000 5250000PandaChemicalOilDIS 1 June2006 USD 19545000 4345000 1500000 5845000WesternChemicalKS 3 July2006 EUR 32775000 7095000 5750000 12845000SingaporeOffshoreDIS 5 August2006 USD 129100000 8500000 8000000 16500000OceanlinkOffshoreIIDIS 1 August2006 USD 12000000 2250000 2250000 4500000JapanOffshoreIIDIS 3 September2006 USD 39075000 8775000 7825000 16600000NFCOffshoreIIIDIS 2 October2006 USD 46046000 14186000 8666000 22852000JapanOffshoreIIIDIS 2 October2006 USD 47340000 10540000 9430000 19970000OceanlinkOffshoreIIIDIS 2 October2006 USD 28500000 5200000 9600000 14800000AgderOceanReeferIIDIS 2 November2006 USD 19500000 4500000 4500000NorthernOffshoreDIS 2 November2006 USD 39000000 8400000 6740000 15140000NorwegianProductDIS 2 November2006 USD 32865000 7265000 6500000 13765000GlobalCableIIDIS 2 December2006 USD 45400000 9400000 6000000 15400000


TotalEUR 32775000 7095000 5750000 12845000

Projectsestablishedperyear


21



RossChemicalDIS 5 February2007 USD 119100000 25100000 12000000 37100000

AtlanLcGuardianDIS 1 February2007 USD 42880000 8100000 8000000 16100000

NFCPanamaxDIS 1 March2007 USD 24650000 4650000 4650000

OrchardOffshoreDIS 4 March2007 USD 43800000 7800000 2125000 9925000

RafflesOffshoreDIS 1 March2007 USD 45945000 12445000 4500000 16945000

NorwegianOffshoreDIS 4 April2007 USD 65470000 21900000 6000000 27900000

MedEthyleneDIS 2 May2007 USD 27875000 6275000 4500000 10775000

UllswaterSubseaDIS 1 May2007 USD 48820000 12820000 5000000 17820000

EuropeanVentureIIDIS 1 July2007 USD 11370000 3370000 6000000 9370000

TiomanOffshoreDIS 1 July2007 USD 51150000 11150000 11150000

SentosaOffshoreDIS 4 July2007 USD 46350000 8300000 8300000

SouthernChemicalDIS 3 July2007 EUR 88200000 10350000 10000000 20350000

BoveyOffshoreLtd 4 August2007 USD 43600000 10500000 10500000

AsianBulkersDIS 3 October2007 USD 142875000 49075000 49075000

ShortSeaShippingDIS 4 November2007 EUR 24800000 4550000 4500000 9050000

RossChemicalIVDIS 2 November2007 USD 53000000 18000000 18000000

DongguanChemicalTankersDIS 1 November2007 USD 32750000 7150000 7000000 14150000

PantheonChemicalDIS 1 November2007 EUR 31000000 5160000 5500000 10660000No.ofvessels 43 TotalNOK No.ofprojects 18 TotalUSD 799635000 206635000 55125000 261760000

TotalEUR 144000000 20060000 20000000 40060000



MarinelineChemicalDIS 3 February2008 USD 79850000 12680000 12680000

EddaAccommodaLonDIS 1 February2008 EUR 126500000 44000000 12000000 56000000

NFCAHTSLimited 2 March2008 USD 70520000 24600000 24600000

BukitTimahOffshoreDIS 3 May2008 USD 125269250 29269250 29269250

MountbaZenOffshoreDIS 2 May2008 USD 109134000 25134000 25134000

BoveyOffshoreLtd. 4 May2008 USD 42650000 14475000 14475000

SemakauProducerDIS 1 July2008 USD 20400000 20400000 20400000

EuropeanVentureIIIDIS 1 July2008 USD 17720000 5720000 5000000 10720000

GoldenKamsarDIS 1 August2008 USD 67294000 17294000 12500000 29794000

JimbaranDIS 1 September2008 USD 54200000 9035000 9035000

SeminyakDIS 2 September2008 USD 108963000 18618000 14000000 32618000

JBUSOffshoreDIS 2 September2008 USD 60000000 27000000 27000000

OceanlinkReeferIIIDIS 1 September2008 USD 20200000 5200000 5000000 10200000

AgderOceanReeferKS 7 October2008 USD 53500000 10000000 7000000 17000000No.ofvessels 31 TotalNOK No.ofprojects 14 TotalUSD 829700250 21942525043500000 262925250

TotalEUR 126500000 4400000012000000 56000000



Leighton/ICON 3 July2009 USD 135000000 10000000 10000000

ICONVictorious 1 August2009 USD 42500000 37750000 37750000

DivingBell 1 November2009 USD 10000000 8000000 8000000No.ofvessels 5 TotalNOK No.ofprojects 3 TotalUSD 187500000 55750000 55750000

TotalEUR


22



OctavianBulkerDIS 1 July2010 USD 37400000 16000000 16000000ShanghaiBulkerDIS 1 August2010 USD 9000000 1670000 1670000SaragolTankers1DIS 1 September2010 USD 48237500 17737500 17737500SaragolTankers2DIS 1 September2010 USD 54312500 18812500 2000000 20812500

No.ofvessels 4 TotalNOK No.ofprojects 4 TotalUSD 148950000 54220000 2000000 56220000

TotalEUR -



NorthernSupplyDIS 2 May2011 USD 88000000 20800000 19280000 40080000RedfishOffshore 2 November2011 USD 45000000 9000000 9000000


TotalEUR



SingaporeSupplyDIS 1 March2012 USD 42700000 10240000 8580000 18820000IndustrialShippingDIS 7 March2012 EUR 25950000 5750000 5750000VestlandMarinePSVDIS 1 April2012 USD 1650000 1650000 1650000MSNordstjernenDIS 1 November2012 NOK 6000000 6000000 6000000

No.ofvessels 10 TotalNOK 6000000 6000000 6000000No.ofprojects 4 TotalUSD 44350000 11890000 8580000 20470000

TotalEUR 25950000 5750000 5750000



FeederContainerVesselDIS 1 May2013 USD 4300000 4300000 4300000SudongOffshoreDIS 1 October2013 USD 26000000 8200000 8200000PandaChemicalIIDIS 1 November2013 USD 4315000 1815000 2000000 3815000

No.ofvessels 3 TotalNOK No.ofprojects 3 TotalUSD 34615000 143150002000000 16315000

TotalEUR



VestlandMarineSeismicDIS 1 February2014 USD 1550000 1550000 1550000HighYieldShippingDIS 1 April2014 USD 6000000 6000000 6000000CIT-GriegLygra 1 June2014 USD 49000000 49000000 49000000CIT-GriegMinerva 1 June2014 USD 17100000 17100000 17100000DSVAllianceDIS 1 June2014 USD 21500000 10112500 10112500AberdeenOffshoreDIS 1 November2014 USD 71464000 32464000 32464000LesleyProductDIS 1 November2014 USD 2355000 2355000 2355000

No.ofvessels 7 TotalNOK No.ofprojects 7 TotalUSD 168969000 118581500 118581500

TotalEUR



BergshavAframaxAS 2 January2015 USD 10000000 7500000 2500000 10000000CIT-ThorMagni 1 February2015 USD 21500000 21500000 21500000HomborsundContainerDIS 1 April2015 USD 4750000 4750000 4750000HenrieZaProductDIS 1 April2015 USD 10400000 8400000 8400000CIT-ThorModi 1 May2015 USD 21500000 21500000 21500000CITThorFrigg 1 May2015 USD 21500000 21500000 21500000FeederContainerIIDIS 2 September2015 USD 15525000 15525000 15525000CIT-ThorFreyja 1 September2015 USD 21500000 21500000 21500000


TotalEUR


23


PROJECTS ESTABLISHED 2016 NO. OF VSLS. ESTABLISHED CURRENCY TOTAL PROJECT

PRICE PAID IN CAPITAL UNCALLED CAPITAL

TOTAL COMMITTED CAPITAL

PSV Opportunity I DIS 3 July 2016 USD 12 000 000 12 000 000 12 000 000

Nordic Handysize DIS 1 August 2016 USD 7 975 000 7 975 000 7 975 000

PSV Opportunity II DIS 2 September 2016 USD 13 500 000 13 500 000 13 500 000

PSV Opportunity III DIS 2 Decmeber 2016 USD 14 900 000 14 900 000 14 900 000

Nordic Maxbox 2 Decmeber 2016 USD 16 500 000 16 500 000 16 500 000

No. of vessels 10 Total NOK No. of projects 5 Total USD 64 875 000 64 875 000 0 64 875 000

Total EUR




Standard PSV 5 January 2017 USD 62 200 000 62 200 000 62 200 000 Nordic Handysize II DIS 1 January 2017 USD 9 500 000 9 500 000 9 500 000 Park Street Shipping DIS 1 February 2017 USD 9 500 000 9 500 000 9 500 000 Atlantic Kamsarmax DIS 1 April 2017 USD 7 045 000 4 390 000 2 655 000 7 045 000 Northern Product DIS 1 June 2017 USD 10 600 000 3 900 000 10 600 000 2x 2800 TEU Containerships 2 October 2017 USD 21 500 000 21 500 000 21 500 000 Nordic Handysize III AS 2 November 2017 USD 22 800 000 14 320 000 22 800 000 1x Passenger Cruiseship 1 December 2017 USD 21 250 000 21 250 000 21 250 000

No. of vessels 14 Total NOK No. of projects 7 Total USD 164 395 000 161 740 000 2 655 000 164 395 000

Total EUR




1x Passenger Cruiseship 1 January 2018 USD 21 000 000 21 000 000 21 000 000

Garthcliff Shipping Ltd 1 January 2018 USD 7 650 000 7 650 000 7 650 000 Nordic Handysize IV Holding AS 2 April 2018 USD 26 500 000 15 500 000 26 500 000

Northern PSV AS 2 April 2018 USD 6 700

000 6 700

000 6 700

000 Northern Tankers DIS 1 May 2018 USD 13 350 000 5 850 000 13 350 000 Tasmanic Heavylift DIS 1 June 2018 USD 11 300 000 6 700 000 11 300 000 Anker Shipping Ltd 1 July 2018 USD 7 840 000 7 840 000 7 840 000

Nordic LR1 AS 1 September 2018 USD 15 400 000 15 400 000 15 400

000

No. of vessels 10 Total NOK No. of projects 8 Total USD 109 740 000 71 240 000 0 109 740 000

Total EUR

24


41 EddaAccommodaLonDIS 1 December2008 EUR 126500000 N/A 201242 MulLpurposeBulkersDIS 4 December2005 EUR 27145000 N/A 201243 NorwegianShippingDIS 1 April2005 USD 19200000 15% 201244 OceanlinkReeferIIIDIS 1 September2008 USD 20200000 N/A 201245 AgderOceanReeferIIDIS 2 November2006 USD 19500000 N/A 201346 AgderOceanReeferKS 3 November2005 USD 27750000 N/A 201347 CementShipIIDIS 1 November2005 USD 19800000 19% 201348 JimbaranDIS 1 September2008 USD 54200000 -100%* 201349 NorwegianShippingIIDIS 1 January2006 USD 8000000 8% 201350 OceanlinkOffshoreIIIDIS 2 October2006 USD 28500000 N/A 201351 RafflesOffshoreDIS 1 March2007 USD 45945000 16% 201352 VestlandMarinePSVDIS 1 April2012 USD 1650000 30% 201353 AgderOceanReeferKS 7 October2008 USD 53500000 -67%* 201454 AtlanLcGuardianDIS 1 February2007 USD 42880000 N/A 201455 BoveyOffshoreLtd 4 May2008 USD 42650000 17% 201456 BoveyOffshoreLtd 4 August2007 USD 43600000 17% 201457 EuropeanVentureIIIDIS 1 July2008 USD 17720000 24% 201458 GlobalCableIIDIS 2 December2006 USD 45400000 21% 201459 MarinelineChemicalDIS 3 February2008 USD 79850000 -100%* 201460 MedEthyleneDIS 2 May2007 USD 27875000 4% 201461 MountFaberKS 4 April2005 USD 80900000 32% 201462 NorwegianProductDIS 2 November2006 USD 32865000 3% 201463 PandaChemicalOilDIS 1 June2006 USD 19545000 -53%* 201464 SBSTorrentKS 1 December2005 NOK 141175000 23% 201465 SBSTyphoonKS 1 January2006 NOK 167050000 21% 201466 RTSPanamaxDIS 1 April2007 USD 24000000 N/A 201467 FeederContainerVesselDIS 1 May2013 USD 4300000 23% 201568 NorthernSupplyDIS 2 May2011 USD 88000000 N/A 201569 OctavianBulkerDIS 1 July2009 USD 37400000 -29% 201570 SingaporeSupplyDIS 1 March2012 USD 42700000 N/A 201571 UllswaterSubseaDIS 1 May2007 USD 48820000 15% 201572 DSVAllianceDIS 1 June2014 USD 21500000 -100%* 201673 OrchardOffshoreDIS 4 March2007 USD 43800000 18% 201674 SingaporeOffshoreDIS 5 August2006 USD 129100000 18% 201675 VestlandMarineSeismicDIS 1 February2014 USD 1550000 7% 201676 SentosaOffshoreDIS 4 July2007 USD 46350000 13% 201777 BukitTimahOffshoreDIS 3 May2008 USD 125269250 -20% 201778 AsianBulkersDIS 3 October2007 USD 142875000 -100%* 201779 SudongOffshoreDIS 1 October2013 USD 26000000 -75% 201880 BergshavAframaxAS 1 January2015 USD 10000000 13% 201881 HomborsundContainerDIS 1 April2015 USD 4750000 -65% 201881 Vesselsfinancedandsold: 161 USD/EUR1:1(USD/NOK8.20): ~$4500000000

*Cash-on-cashreturn

ProjectsConcluded

# ProjectName Vessels Established Currency TotalProjectCost IRR Sold1 DivingBell 1 July2009 USD 10000000 N/A N/A2 ICONVictorious 1 July2009 USD 42500000 N/A N/A3 Leighton/ICON 3 July2009 USD 135000000 N/A N/A4 RedfishOffshore 2 November2011 USD 45000000 N/A N/A5 RossChemicalDIS 5 February2007 USD 119100000 N/A N/A6 ShortSeaShippingDIS 4 November2007 EUR 24800000 N/A N/A7 InternaLonalContainerShipsKS 2 November2004 USD 66260000 95%* 20058 Aries(Ugelstad)SupplyIKS 1 April2004 NOK 201046770 66% 20079 Aries(Ugelstad)SupplyIIKS 1 April2006 NOK 155000000 64% 200710 CelineIOBODIS 1 November2005 USD 12470000 57% 200711 GoliatRoroKS 1 May2005 EUR 9000000 -25%* 200712 GreenPacificDIS 3 December2005 USD 30590000 N/A 200713 J.B.UOBOIKS 1 December2004 USD 36580000 37% 200714 JapanOffshoreDIS 3 April2006 USD 37150000 70%* 200715 JapanOffshoreIIDIS 3 September2006 USD 39075000 733%* 200716 JapanOffshoreIIIDIS 2 October2006 USD 47340000 49%* 200717 NFCOffshoreDIS 4 April2006 USD 74500000 477% 200718 NFCOffshoreIIIDIS 2 October2006 USD 46046000 26%* 200719 NorthernOffshoreDIS 2 November2006 USD 39000000 153% 200720 RossCapeDIS 1 October2004 USD 17350000 41% 200721 GlobalCableKS 2 June2005 USD 12320000 28% 200922 SemakauProducerDIS 1 July2008 USD 20400000 19% 200923 EidsivaTruckerKS 1 February2005 EUR 10900000 -100%* 201024 NFCAHTSLimited 2 March2008 USD 70520000 -5%* 201025 ScandinavianBulkersKS 5 September2005 EUR 28926000 0% 201026 BergshavChemicalKS 2 July2005 EUR 20470000 -48%* 201127 EuropeanVentureIIDIS 1 July2007 USD 11370000 20% 201128 JBUSOffshoreDIS 2 September2008 USD 60000000 3% 201129 MountbaZenOffshoreDIS 2 May2008 USD 109134000 -8%* 201130 NorwegianOffshoreDIS 4 April2007 USD 65470000 0% 201131 OceanlinkOffshoreDIS 1 May2006 USD 13250000 16% 201132 OceanlinkOffshoreIIDIS 1 August2006 USD 12000000 35% 201133 PantheonChemicalDIS 1 November2007 EUR 31000000 N/A 201134 RossChemicalIVDIS 2 November2007 USD 53000000 N/A 201135 SBSTempestKS 1 December2005 NOK 134300000 30% 201136 ShanghaiBulkerDIS 1 August2010 USD 9000000 55% 201137 TiomanOffshoreDIS 1 July2007 USD 51150000 10% 201138 VolstadSupplyIKS 1 August2005 NOK 262620000 27% 201139 VolstadSupplyIIKS 1 November2005 NOK 262620000 38% 201140 WesternChemicalKS 3 July2006 EUR 32775000 -60%* 2011

25

Exis[ngProjects&Segment


# Offshore/Supply # Total project price Comment 1 European Venture DIS 2 USD 46 325 000 2 Aberdeen Offshore DIS 1 USD 71 464 000 3 Northern Supply AS 9 USD 52 150 000 4 Standard PSV 5 USD 62 200 000

17 Tankers # Comment

5 Panda Chemical II DIS 1 USD 4 315 000 6 Southern Chemical DIS 2 EUR 88 200 000 7 Dongguan Chemical DIS 1 USD 32 750 000 8 Saragol Tankers I DIS 1 USD 56 000 000 9 Saragol Tankers II DIS 1 USD 49 000 000 10 Lesley Product DIS 1 USD 2 355 000 11 Henrietta Product DIS 1 USD 10 400 000 12 Northern Tankers DIS 1 USD 13 350 000 13 Northern Product DIS 1 USD 13 100 000 14 Nordic LR1 AS 1 USD 15 400 000

11 Bulk carriers # Comment

15 Golden Kamsar DIS 1 USD 67 294 000 16 Industrial Shipping DIS 3 EUR 34 000 000 17 Nordic Handysize DIS 1 USD 7 970 000 18 Nordic Handysize II DIS 1 USD 9 500 000 19 Park Streeet Shipping Ltd 1 USD 9 500 000 20 Nordic Handysize III AS 2 USD 22 800 000 21 Nordic Handysize IV Holding AS 2 USD 26 500 000 22 CIT Grieg 1 USD 52 000 000 23 Atlantic Kamsarmax DIS 1 USD 25 200 000

13 Containers # Comment

24 Feeder Container II DIS 2 USD 15 500 000 25 High Yield Shipping DIS 1 USD 6 000 000 26 Nordic Maxbox 2 USD 17 000 000 27 Anker Shipping Ltd 1 USD 7 840 000 28 Garthcliff Shipping Ltd 1 USD 5 461 000

7 MPP # Comment

29 Tasmanic Heavylift DIS 1 11 300 000 1 Other # Comment

30 MS Nordstjernen DIS 1 USD 1 000 000 1 Total $/euro 1:1 835 874 000 Projects 30 Vessels 50

6

Fleetlist


Clarksons Platou Project Finance Fleet List

Project Vessel Type Vessel Name DWT/TEU/BHP/M2 Built Yard Charter Type

Aberdeen Offshore DIS PSV FS Cygnus 750m2 2014 Simek Yard, Norway TC Anker Shipping Ltd Container Feeder Vessel Saturn 1341 TEU 2008 Jiangsu YZJ TC Atlantic Kamsarmax Kamsarmax Newbuilding Atlantica Sun 82000 2019 Hantong Shipyard N/A

CIT-Grieg Dry bulk vessel Star Lygra 50741 2013 Hyundai Mipo BB

Dongguan Chemical Tankers DIS IMO II Chemical Tanker Toreach Pioneer 8200 2008 Zhejiang Haifeng Shipbuilding Co. Ltd., China BB

European Venture DIS PSV GSP Queen 2 x 3978 BHP 2006 Jaya Yard, Singapore BB

European Venture DIS PSV GSP King 2 x 5440 BHP 2005 Jaya Yard, Singapore BB

Feeder Container II DIS Container Feeder Vessel MV Portofino 1701 TEU 2002 Stocznia Szczecinska, Poland TC

Feeder Container II DIS Container Feeder Vessel MV Ponente 1701 TEU 2002 Stocznia Szczecinska, Poland TC

Garthcliff Shipping Ltd Container Feeder Vessel Sentosa 1200 TEU 2001 Hanjin Shipyard TC

Golden Kamsar DIS Kamsarmax Golden Eclipse 79600 2010 Jinhaiwan Shipyard, China BB

Henrietta Product DIS Product Tanker Henrietta PG 9847 2001 Frisian Shyd, Netherlands BB

High Yield Shipping DIS Container Feeder Vessel MSC Positano 2300 TEU 2003 Daewoo, South Korea BB

Industrial Shipping DIS MPP Single-Decker MV Forza 4117 2000 Severnav S.A, Romania BB

Industrial Shipping DIS MPP Single-Decker MV Distinto 4160 2000 Severnav S.A, Romania BB

Industrial Shipping DIS MPP Single-Decker MV Lontano 4160 2000 Severnav S.A, Romania BB

Lesley Product DIS Product Tanker Lesley PG 6249 1998 Appledore Shipbuilders, UK BB

MS Nordstjernen DIS Veteran Passenger Ship MS Nordstjernen 570 1956 Blohm & Voss, Germany BB

Nordic Handysize DIS Handysize Bulk Carrier Nordic Malmoe 37000 2012 Jianghu Nantong TC

Nordic Handysize II DIS Handysize Bulk Carrier Nordic Skagen 35000 2010 TK Shipbuilding, Korea TC

Nordic Handysize III AS Bulk Carrier Elenia 35000 2011 SPP Goseong TC

Nordic Handysize III AS Bulk Carrier Elbia 35000 2011 SPP Goseong TC

Nordic Handysize IV Holding AS Bulk Carrier Nordic Nanjing 35000 2013 Guyo Shipyard TC

Nordic Handysize IV Holding AS Bulk Carrier Nordic Dalian 37500 2013 Guyo Shipyard TC

Nordic LR1 AS LR1 Tanker Nordic Geneva 74000 2009 New Century Shipyard SPOT

Nordic Maxbox Baby Panamax Container Bomar Bravo 3500 TEU 2013 Wenchong Shipyard TC

Nordic Maxbox Baby Panamax Container Bomar Charlie 3500 TEU 2013 Wenchong Shipyard TC

Northern Product DIS Product Tanker Dumlupinar 11300 2008 Dearsan Shipyard BB

Northern Supply AS PSV FS Arendal 700m2 2006 Kleven Verft, Norway TC

Northern Supply AS PSV FS Bergen 700m2 2006 Kleven Verft, Norway Warm Lay-up

Northern Supply AS PSV FS Kristiansand 700m2 2005 Kleven Verft, Norway TC

Northern Supply AS PSV FS Aberdour 680m2 2008 Vard Aukra, Norway Warm-layup

Northern Supply AS PSV FS Abergeldie 680m2 2009 Vard Aukra, Norway Warm-Layup

Northern Supply AS PSV FS Braemar 710m2 2007 Aker Brevik, Norway SPOT

Northern Supply AS PSV FS Balmoral 710m2 2008 Aker Brevik, Norway SPOT

Northern Tankers DIS Product Tanker Lisca Bianca 38000 2008 Hyundai MIPO BB

Northern Supply AS PSV FS Crathes 3250 2008 Aker Aukra TC

Northern Supply AS PSV FS Carrick 3250 2009 Aker Aukra TC

Panda Chemical II DIS Product Tanker Panda PG 6725 2004 Sedef Shipyard/ Istanbul BB

Park Street Shipping Ltd Handysize Bulk Carrier Nordic London 35000 2010 TK Shipbuilding, Korea TC

Standard PSV PSV Standard Viking 1060m2 2007 Aker Brattvaag, Norway TC

Standard PSV PSV Standard Princess 1060m2 2008 Aker Brattvaag, Norway TC

Standard PSV PSV Standard Supplier 1060m2 2007 Aker Brattvaag, Norway TC

Standard PSV PSV Standard Supporter 1000m2 2009 STX Brevik TC

Standard PSV PSV Standard Provider 1000m2 2010 STX Brevik SPOT

Saragol Tankers 1 DIS Product Tanker LR MV Luengo 73626 2007 New Century Shipbuilding Co. BB

Saragol Tankers 2 DIS Product & Crude Oil Tanker MT Mucua 114000 2008 New Times Shipbuilding Co. Ltd. China BB

Southern Chemical DIS Chemical Tanker Alicudi M 40083 2004 Korea BB

Southern Chemical DIS Chemical Tanker Lipari M 3400 2002 Italy BB

Tasmanic Heavylift DIS MPP Tasmanic Winter 3250 2012 CSC Qingshan SPOT

6

Fleetlist




















































6

Fleetlist




















































6

Fleetlist




















































THEPROJECTS

28

KEYFIGURES(Dateofanalysis30.09.2018)ProjectBroker:ChrisW.Svensson,CorporateManager:MagnusBuraas

THEVESSEL(S)

COMMERCIALDETAILS

INFOMEMORANDUMBASECASE

CASHFLOWFORECASTS

BALANCE30.09.2018E

COMMENTS

FINANCING

Established: October2014 Es[matedsharevalueper1% N/A

Paidincapital: USD 17,000,000 Lastreportedsalepr1% N/A

Uncalledcapital: USD 0 Es[matedIRRBuyer: N/A

Accumulateddividends: USD N/A Es[matedIRRSeller: N/A

Es[matedExpiry: Q42024 Latenttaxliabilityvesselpr.1% N/A

Latenttaxliabilitydebtpr.1% N/A

AberdeenOffshoreDIS

Vessel(s)name: FSCYGNUS

Type: PSVUT755LC

DWT: 3,150Yard: SIMEK,Flekkesord,Norway

Built: November2014

Class: DNVGL

Flag: BriLsh

Corporatemanagement: ClarksonsPlatouProjectFinanceASDisponentowner: Projectprice: USD 34,800,000Paidincapital: USD 17,000,000Uncalledcapital: USD 0Tech&CommercialManager: FletcherSupplyVesselsLtd.TimeCharterer: EnquestBBCharter: N/ADailyTimecharterrate: USD 5,750

Es[matedResidual: USD26,000,000

Es[matedIRR: N/A

2017 2018E 2019E 2020E 2021EOpera[ngrevenue 3,186,000 2,662,000 3,309,000Opera[ngexpenses -2,378,000 -2,434,000 -2,526,000Netopera[ngcashflow 807,000 228,000 783,000Purchase/Saleofvessel 0 0 0Interestearned 0 0 0Interestexpenses -602,000 -381,000 -399,000Paidincapital 0 0 0Drawdown/Repaymentlongtermdebt 0 150,000 -160,000Netfinancialitems -602,000 -231,000 -559,000Netprojectedcashflow 205,000 -3,000 224,000Es[mateddividend 0 0 0

Cash USD N/AImplicitvesselvalue USDAccountsReceivable USDTotalassets USDOutstandingdebt USDShorttermpayables USDTotaloutstandingdebt USDEs[matedprojectvalue USD

The company aquired the newbuilding, FS Cygnus, on 14November 2014.ThevesselisfixedonaT/CtoEnquestwithexpiry9January2019.

Mortgageloan: 18911140

Balloon: 11031498

Term: 5years

Quarterlyinstalments: 393982

Interest: LIBOR+2.95%


29

KEYFIGURES(Dateofanalysis30.09.2018)ProjectBroker:AxelMoltzauAas,CorporateManager:EvaLiseBjerke

THEVESSEL(S)

COMMERCIALDETAILS


CASHFLOWFORECASTS

BALANCE30.09.2018E

COMMENTS

FINANCING

Established: July2018 Es[matedsharevalueper1% N/A

Paidincapital: GBP 7,840,000 Lastreportedsalepr1% N/A

Uncalledcapital: GBP 0 Es[matedIRRBuyer: N/A

Accumulateddividends: GBP 0 Es[matedIRRSeller: N/A

Es[matedExpiry: N/A Latenttaxliabilityvesselpr.1% N/A


AnkerShippingLtd

Corporatemanagement: ClarksonsPlatouProjectFinanceASDisponentowner: N/AProjectprice: GBP 7,840,000Paidincapital: GBP 7,840,000Uncalledcapital: GBP 0Tech&CommercialManager: NordicHamburgTimeCharterer: CaribbeanFeederServicesBBCharter: N/ADailyT/Crate: USD 9,750

Es[matedResidual: N/A

Es[matedIRR: N/A

2017 2018E 2019E 2020E 2021EOpera[ngrevenue N/AOpera[ngexpensesNetopera[ngcashflowPurchase/SaleofvesselInterestearnedInterestexpensesPaidincapitalDrawdown/RepaymentlongtermdebtNetfinancialitemsNetprojectedcashflowEs[mateddividend

AnkerShippingLtd.isajointventurebetweenNordicHamburgandaUKInvestmentFund.Theprojectownsandoperatesa2008-builtcontainervesselcurrentlyon5-7monthsLmechartertoCaribbeanFeederServices.

Mortgageloan: N/A

Balloon:

Seller'scredit

Term:

Quarterlyinstalments:

Interest:

Vessel(s)name: Saturn

Type: ContainerFeederVessel

TEU: 1,341Yard: JiangsuYangzijang,China

Built: 2008

Class: BV

Flag: UK

Cash GBP N/A

Implicitvesselvalue GBP

Totalassets GBP

Outstandingdebt GBP

Shorttermpayables GBP

Totaloutstandingdebt GBP

Es[matedprojectvalue GBP


30

KEYFIGURES(Dateofanalysis30.09.2018)ProjectBroker:TrulsWieseKolstad/AxelMoltzauAas,CorporateManager:BenjaminRyeng-Hansen

THEVESSEL(S)

COMMERCIALDETAILS


CASHFLOWFORECASTS

BALANCE30.09.2018E

COMMENTS

FINANCING

Established: April2017 Es[matedsharevalueper1% USD94,895



Accumulateddividends: USD N/A Es[matedIRRSeller: 19%

Es[matedExpiry: Within2019 Latenttaxliabilityvesselpr.1% N/A


Atlan[cKamsarmaxDIS

Corporatemanagement: ClarksonsPlatouProjectFinanceASDisponentowner: AtlanLcaShippingASProjectprice: USD 7,045,000Paidincapital: USD 7,045,000Uncalledcapital: USD 0Bareboatcharterer: N/AFutureCharterer: OldendorffCarriersExpiryofcharter: N/ADailybareboatrate: USD N/A


Es[matedIRR: 30-50%

2017 2018E 2019E 2020E 2021EOpera[ngrevenue 0 0Opera[ngexpenses -557,000 -388,000Netopera[ngcashflow -557,000 -388,000Purchase/Saleofvessel -3,622,500 -2,415,000Interestearned 4,000 2,000Interestexpenses 0 0Paidincapital 4,390,000 2,655,000Drawdown/Repaymentlongtermdebt 0 0Netfinancialitems 771,500 242,000Netprojectedcashflow 214,500 -146,000Es[mateddividend 0 0

Cash USD 112,000Implicitvesselvalue USD 27,500,000AccountsReceivable USD 0Totalassets USD 27,612,000AccountsPayable USD 18,112,500Shorttermpayables USD 10,000Totaloutstandingdebt USD 18,122,500Es[matedprojectvalue USD 9,489,500

The vessel was ordered by Oldendorff Carriers, who also carries out thesupervisiononbehalfoftheproject.ThevesselispurchasedonMoAtermsfromOldendorffCarriers,effecLvelyremovingtheconstrucLonrisk.75%ofthe contract price will be paid on delivery. This project was jointlyconcludedwithFearnleyProjectFinanceAS.

Mortgageloan: 100%Equity

Balloon:

Term:


Interest:

Vessel(s)name: TBN

Type: SDARIKamsarmax

DWT: 82,000Yard: Hantong,China

Built: January2019

Class: TBA

Flag: TBA


31

KEYFIGURES(Dateofanalysis30.09.2018)ProjectBroker:AxelMoltzauAas,CorporateManager:BenjaminRyeng-Hansen

THEVESSEL(S)

COMMERCIALDETAILS


CASHFLOWFORECASTS

BALANCE30.09.2018E

COMMENTS

FINANCING

Established: February2015 Es[matedsharevalueper1% USD840



Accumulateddividends: USD 7,900,000 Es[matedIRRSeller: N/A



BergshavAframaxAS

Vessel(s)name: STEALTHBERANA

Type: AframaxTanker

DWT: 115,897Yard: SamsungHI,SouthKorea

Built: 2010

Class: DNVGL

Flag: Malta

Corporatemanagement: ClarksonsPlatouProjectFinanceASDisponentowner: BergshavManagementASProjectprice: USD 6,500,000Paidincapital: USD 6,500,000Uncalledcapital: USD 0T/Ccharterer: Phillips66Commencementofcharter: October2015DailyBBrate:: USD 12,900DailyT/Crate: USD 25,150

Es[matedResidual: Bareboat

Es[matedIRR: 73%

2017 2018E 2019E 2020E 2021EOpera[ngrevenue 7,941,000 1,553,000Opera[ngexpenses -7,209,000 -1,649,000Netopera[ngcashflow 732,000 -96,000Purchase/Saleofvessel -120,000 144,000Interestearned 0 0Interestexpenses 0 0Paidincapital 0 0Drawdown/Repaymentlongtermdebt 0 1,821,000Netfinancialitems -120,000 1,965,000Netprojectedcashflow 612,000 1,869,000Es[mateddividend 1,200,000 2,384,000

BergshavAframaxAShascharteredinoneAframaxTankeron32monthsbareboatcharter.ThevesselisfixedonTCtoPhilips66fortheremainingbareboatperiod.ThevesselwasredeliveredtoownersinMarch2018.ThecompanyiscurrentlyunderliquidaLon.

Mortgageloan: 100%Equity

Balloon:

Term:


Interest:

Cash USD 84,000

Implicitvesselvalue USD -

Totalassets USD 84,000

Outstandingdebt USD -

Shorttermpayables USD -

Totaloutstandingdebt USD -

Es[matedprojectvalue USD 84,000


32

KEYFIGURES(Dateofanalysis30.09.2018)ProjectBroker:ChrisW.Svensson,CorporateManager:BenjaminRyeng-Hansen

THEVESSEL(S)

COMMERCIALDETAILS


CASHFLOWFORECASTS

BALANCE30.09.2018E

COMMENTS

FINANCING

Established: May2014 Es[matedsharevalueper1% N/A

Paidincapital: USD 49000000 Lastreportedsalepr1% N/A





CIT-Grieg

Vessel(s)name: StarLygra StarMinerva

Type: Open-HatchBulkCarrierOpen-HatchBulk

CarrierDWT: 50,700 49,955Yard: HyundaiMipo,Korea OshimaSB

Built: 2013 2008

Class: ABS DNVGL

Flag: Cyprus MarshallIsl.

Corporatemanagement: ClarksonsPlatouProjectFinanceASDisponentowner: Projectprice: USDPaidincapital: USDUncalledcapital: USDBareboatcharterer: GriegShippingIIASCommencementofcharter: Expiryofcharter: DailyBBrate: USD


Es[matedIRR: N/A


ProjectfinancedincooperaLonwithCIT.

Mortgageloan: N/A

Balloon:

Term:


Interest:

Cash USD N/A

Implicitvesselvalue USD

Totalassets USD

Outstandingdebt USD

Shorttermpayables USD

Totaloutstandingdebt USD

Es[matedprojectvalue USD


33

KEYFIGURES(Dateofanalysis30.09.2018)ProjectBroker:ChrisW.Svensson,CorporateManager:BenjaminRyeng-Hansen

THEVESSEL(S)

COMMERCIALDETAILS


CASHFLOWFORECASTS

BALANCE30.09.2018E

COMMENTS

FINANCING

Established: August2014 Es[matedsharevalueper1% N/A

Paidincapital: USD 86000000 Lastreportedsalepr1% N/A





CIT-Thor

Corporatemanagement: ClarksonsPlatouProjectFinanceASDisponentowner: Projectprice: USDPaidincapital: USDUncalledcapital: USDBareboatcharterer: P/FThorTimeCharterer: PGSGeophysicalASExpiryofcharter: DailyBBrate: USD


Es[matedIRR: N/A


ProjectfinancedincooperaLonwithCIT.

Mortgageloan: N/A

Balloon:

Term:


Interest:

Vessel(s)name: ThorMagni ThorModi ThorFreyja ThorFrigg

Type: SeismicSup. SeismicSup. SeismicSup. SeismicSup.

DWT: 1,750 1,750 1,750 1,750Yard: Besiktas Besiktas Besiktas Besiktas

Built: 2014 2015 2015 2015

Class: DNVGL DNVGL DNVGL DNVGL

Flag: Bahamas Bahamas Bahamas Bahamas

Cash USD N/A

Implicitvesselvalue USD

Totalassets USD

Outstandingdebt USD

Shorttermpayables USD

Totaloutstandingdebt USD

Es[matedprojectvalue USD


34

KEYFIGURES(Dateofanalysis30.09.2018)ProjectBroker:AxelMoltzauAas,CorporateManager:MagnusBuraas

THEVESSEL(S)

COMMERCIALDETAILS


CASHFLOWFORECASTS

BALANCE30.09.2018E

COMMENTS

FINANCING

Established: December2007 Es[matedsharevalueper1% USD30,000

Paidincapital: USD 7,150,000 Lastreportedsalepr1% USD36,500

Uncalledcapital: USD - Es[matedIRRBuyer: N/A

Accumulateddividends: USD 6,675,000 Es[matedIRRSeller: 3.70%

Es[matedExpiry: Q42021 Latenttaxliabilityvesselpr.1% USD5,700

Latenttaxliabilitydebtpr.1% USD0

DongguanChemicalTankersDIS

Corporatemanagement: ClarksonsPlatouProjectFinanceASDisponentowner: AtlanLcaShippingASProjectprice: USD 15,324,000Paidincapital: USD 7,150,000Uncalledcapital: USD -Bareboatcharterer: ToreachguaranteedbyDongguanTimeCharterer: 15October2008Expiryofcharter: 15October2021DailyBBrate: USD 5,250/d&4,200/d

Es[matedResidual: 18,200,000

Es[matedIRR: 17%

2017 2018E 2019E 2020E 2021EOpera[ngrevenue 1,407,000 1,147,000 1,533,000 1,537,000 1,789,000Opera[ngexpenses -103,000 -116,000 -106,000 -108,000 -109,000Netopera[ngcashflow 1,304,000 1,031,000 1,427,000 1,429,000 1,680,000Purchase/Saleofvessel 0 0 0 0 1,000,000Interestearned 1,000 1,000 0 0 0Interestexpenses 0 0 0 0 0Paidincapital 0 0 0 0 0Drawdown/Repaymentlongtermdebt 0 0 0 0 -800,000Netfinancialitems 1,000 0 0 0 200,000Netprojectedcashflow 1,305,000 1,032,000 1,427,000 1,429,000 1,880,000Es[mateddividend 1,200,000 1,175,000 1,425,000 1,400,000 1,942,000

Originally8yearsBBperiod.BBperiodhasbeenextendedfor5yearsatadailyrateofUSD4,200.A`erextensionin2016theprojectisconsideredasafinanciallease.ThechartererhasanobligaLontobuythevesselatUSD1millionlessoutstandingseller’screditattheendofthecharter.100%equityasthemortgagewasrepaidinfullin2016.Thechartereriscurrently6monthsbehindonbareboatpaymentsduetofinancialdifficulLes.

Mortgageloan: Repaidinfullin2016

Seller'sCredit: USD800,000

Balloon: N/A

Term: N/A

Quarterlyinstalments: N/A

Mortgage20.11.08-04.05.2012 0%

Mortgage04.05.08-04.11.2015 Repaidinfullin2016

Interest:Seller'sCredit N/A

Vessel(s)name: MTToreachPioneer

Type: ChemicalTankerIMOII

DWT: 8,200

Yard: ZheijangHaifengShipbuilding,ChinaBuilt: 2008

Class: CCS

Flag: MarshallIsland

Cash USD 44,000

Implicitvesselvalue USD 2,966,000

Totalassets USD 3,010,000

Outstandingdebt USD 0

Shorttermpayables USD 10,000

Totaloutstandingdebt USD 10,000

Es[matedprojectvalue USD 3,000,000


35

KEYFIGURES(Dateofanalysis30.09.2018)ProjectBroker:ChrisW.Svensson,CorporateManager:ErikKrisLanAndresen

THEVESSEL(S)

COMMERCIALDETAILS


CASHFLOWFORECASTS

BALANCE30.09.2018E

COMMENTS

FINANCING

Established: April2006 Es[matedsharevalueper1% N/A


Uncalledcapital: USD 5,000,000 Es[matedIRRBuyer: N/A

Accumulateddividends: USD 14,090,000 Es[matedIRRSeller: N/A



EuropeanVentureDIS

Corporatemanagement: ClarksonsPlatouProjectFinanceASDisponentowner: NorthSeaShippingASProjectprice: USD 46,325,000Paidincapital: USD 9,965,000Uncalledcapital: USD 5,000,000Bareboatcharterer: GrupServiciiPetroliereS.A.CharterCommencement December2017GSPKingBBRate USD 3,250/dGSPQueenBBRate USD 2,750/d


Es[matedIRR: 17%

2017 2018E 2019E 2020E 2021EOpera[ngrevenue 107,000 1,238,000Opera[ngexpenses -106,000 -41,000Netopera[ngcashflow 1,000 1,197,000Purchase/Saleofvessel 0 0Interestearned 0 0Interestexpenses -50,000 -685,000Paidincapital 0 0Drawdown/Repaymentlongtermdebt 0 -538,000Netfinancialitems -50,000 -1,223,000Netprojectedcashflow -49,000 -26,000Es[mateddividend 0 0

Charterisexpiring31Dec2018.

Mortgageloan: USD36,360,000

Balloon: USD13,480,000

Seller'scredit USD0

Term: 8Years

Semi-Annualinstalments: USD1,350,000

Interest: LIBOR+4.00%

InterestSeller'sCredit N/A

Vessel(s)name: GSPQueen GSPKing

Type: AHTS,FIFI1&DP2 AHTS,FIFI1&DP2

BHP: 2x3978 2x5440Yard: JayaYard,Singapore JayaYard,Singapore

Built: 2006 2005

Class: ABS ABS

Flag: Gibraltar Gibraltar

Cash USD 60,000

Implicitvesselvalue USD N/A

Totalassets USD N/A

Outstandingdebt USD 6,182,000

Shorttermpayables USD 20,000

Totaloutstandingdebt USD 6,202,000

Es[matedpro

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