profile May '07 - SMARTfieldthe LNG/C METHANIA that was on long-term business to the Belgian importer, Distrigas and, thus, entered the world of LNG. In 1993 LADY BARBARA (3.500m³

E X M A R

A COMPANY PROFILE

De Gerlachekaai 20 B-2000 Antwerpen

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profile May '07.doc 1 rhj

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http://www.exmar.be/

1. COMPANY HISTORY ..........................................................................................................2

2. EXMAR’S TRADING ENVIRONMENT AND FUTURE OUTLOOK........................9

3. THE EXMAR OPERATION .................................................................................................9

MIDSIZE.................................................................................................................................9

LNG .......................................................................................................................................10

VLGC .....................................................................................................................................12

POLAR SHIPS – 10.500m³ Ethylene/Chemical..............................................................13

SMALL SHIPS – 3.000-5.000 m³ pressurised..................................................................13

4. CONTRACTS AND LONG-TERM COMMITMENTS ...............................................13

5. SHIP MANAGEMENT .......................................................................................................14

6. OFFSHORE ...........................................................................................................................15

7. EXMAR WORLDWIDE ......................................................................................................18

8. FINANCIAL STATUS.........................................................................................................18

Key Consolidated Figures .................................................................................................18

Key Figures – LNG..............................................................................................................19

Key Figures – LPG...............................................................................................................19

Key Figures – Offshore ......................................................................................................19


1. COMPANY HISTORY EXMAR’s activities in the Gas sector started in 1981 at the shipyard in Temse, Belgium with the construction of one vessel specifically for long-term business with Dow Chemical, CORAL TEMSE (7.300 m³). In 1983, the Company expanded its activity having increased the fleet by two owned vessels, EUPEN (57.000 m³) and TIELRODE (25.000m³) just delivered from the affiliated shipyard, Boelwerf, in Belgium, and several time chartered vessels. A sister ship to TIELRODE was delivered in 1985 named GENT to add to the modern profile. In 1986, the concept of the “MidSize Fleet” was born through a joint venture with the Norwegian shipowners Christian Haaland and Bergesen involving four vessels. The latter subsequently withdrew from the joint venture when their ship was sold to other interests. In addition the fleet had expanded into the very large gas carrier (VLGC) market with the acquisition of three units, EXCALIBUR (75.500m³ built 1979), EXTOL (71.300m³ built 1977) and FLOREAL (85.660m³ built 1983). These were operated in a joint venture with Bergesen. In 1987, this joint venture was wound up following the acquisition by Bergesen of these VLGC’s.

GENT approaching Stockton

Exmar still considered there was room for manoeuvre within that sector of the market and, later in 1988, came to an agreement with the LPG trading arm of John Frederiksen’s Frontline operation, Metrogas, whereby a joint venture was formed, under the name of Metromar, to charter and operate VLGC’s both on the spot market and under contracts of affreightment. Metrogas already had some ships on time charter and subsequently more were chartered in from selected traders with COA cover. The joint venture was disbanded in the early 1990’s following the winding up of Metrogas however Exmar continued to perform on a similar basis. At the same time a small fleet of modern ethylene/chemical gas carriers was established around CORAL TEMSE by time chartering selected ships and cooperating with other owners of similar tonnage. This operation together with CORAL TEMSE was sold to one of the partners in 1987. During 1987 and the following years, Exmar continued to invest in the core business by ordering a series of four “mid-size” vessels in the 28/34.000m³ range for delivery in 1989/90. One was subsequently sold, prior to delivery, to Bibby Line and a further one was taken over by Christian Haaland. The third one, CHACONIA, was fixed on what became a charter of over 10 years to Trinidadian ammonia producers until she was replaced by a larger unit, namely TOURAINE. The fourth ship, SOMBEKE, was slightly larger and operated within the MidSize Fleet for 11 eleven years until she was sold to Chilean interests in 2002. In the late ‘80’s, as a result of the relations with Metrogas, Exmar re-entered the semi-refrigerated ethylene/chemical gas market with the joint acquisition of three 10.500m³ ships being built in Italy. These were delivered between 1989 and 1991. Subsequently Exmar obtained full control of them when they were named POLAR DISCOVERY, POLAR ENDURANCE and POLAR BELGICA.


In 1990, the Company expanded its activities to the Pacific Basin by coming to a long-term agreement with the major Japanese importer, C.Itoh to time charter an 85.000m³ VLGC to be constructed at Boelwerf, subsequently named FLANDERS HARMONY. This was a pioneering move by the Japanese in committing long-term to a Western owner/operator. 1990 also saw the establishment of a representative or operating company office in Hong Kong called Exmar Pacific from where the operation of small pressurised ships commenced. At that time LADY ROWENA (2.500m³ built 1973) and LADY JOANNA (2.500m³ built 1972) were acquired for coastal trading in the Far East and to Australia. In addition opportunity of some favourable terms at two Japanese shipyards were taken resulting in the order of three newbuldings each of 3.200m³ for delivery in 1991, named LADY STEPHANIE, LADY PAULINE and LADY ARIANE. The last of these was sold prior to delivery to Turkish interests. In 1992, Exmar became a fully owned subsidiary of Compagnie Maritime Belge (CMB), a public company quoted on the Brussels Stock Exchange. At this time Exmar also acquired the operation of the LNG/C METHANIA that was on long-term business to the Belgian importer, Distrigas and, thus, entered the world of LNG.

In 1993 LADY BARBARA (3.500m³ built 1990) was acquired for operation in the Far East and LADY JOANNA was sold for scrap. The activities in the Midsize sector were consolidated further by the ordering in late 1993 of two 37.000m³ vessels, EEKLO and ELVERSELE, at Kawasaki Heavy Industries for delivery in 1995/6. Following a long-term agreement with the Finnish fertiliser conglomerate, Kemira Oy, an order was placed at Boelwerf in 1993 for a 12.000m³ ammonia carrier with

capability of trading in ice in the Baltic. She was subsequently named KEMIRA GAS and delivered in at the end of 1995.

FLANDERS HARMONY 85.000m³

In 1994 Exmar took a major step forward with the signing of a further agreement with C.Itoh, later renamed Itochu Corporation, to time charter a further VLGC newbuilding, FLANDERS TENACITY (84.000m³), that was delivered from Kawasaki Heavy Industries in 1996. In 1994/5 a total of three pressure ships were contracted at various yards in Japan however they were all subsequently sold prior to delivery. Following the decision of midsize partners, Christian Haaland, to disinvest from the shipping industry at the end of 1995, Exmar acquired their two existing ships, NYHOLM (24.000m³ blt 1983) and NYHALL (28.000m³ blt 1989), subsequently renamed ZEEBRUGGE and COURCHEVILLE respectively, plus the newbuilding that was being constructed at Hitachi. This ship of 39.000m³ was subsequently named TOURAINE and delivered in 1996.


In 1996 FLANDERS GLORIA (75.000m³: blt 1991) was purchased from Japanese owners in a joint venture with Malaysian interests however the project for which she was purchased did not materialise and, in 1997, Exmar acquired the balance of the shares in the ship. In early 1997 another landmark was created with the agreement signed with two American fertiliser producers who had formed a joint venture to time charter one existing vessel for five years, GENT, plus a newbuilding for ten years. The newbuilding, named CARLI BAY (25.000m³), was delivered in late 1998.

KEMIRA GAS 12.300m³

That round of fleet upgrading in the midsize was completed with delivery of BRUGGE VENTURE (35.000m³) in 1997 and EUPEN (39.000m³) in 1999. During 1997, on the back of a specific requirement in the Far East, LADY ELINE (1.600m³ built 1990) was bought. This proved to be short-lived and after intermittent spot trading the ship was eventually sold for scrap in 2002. That year also saw orders placed for a new series of four 3.500m³ pressurised ships suitable for trading both in the Far East and Europe. They all delivered in 1998 and were named respectively LADY MARTINE, LADY ELENA, LADY HILDE and LADY KATHLEEN In early 1998 the two VLGC’s then employed on the spot market were time chartered to Bergesen. In return Bergesen time chartered four of their midsize vessels to Exmar for operation in the MidSize Fleet. In September 1998, an additional agreement was reached with Bibby Line whereby their midsize vessels were brought into the MidSize Fleet. This Fleet was expanded further with the time chartering of two vessels from Norwegian conglomerate Norsk Hydro thus bringing the total of vessels in the MidSize Fleet to 23. In late 1999 it was agreed to time charter four 35.000m³ vessels from A.P.Møller. In addition it was agreed that the three 10.500m³ ethylene vessels would be time chartered to Skandigas, a joint venture company operated by A.P.Møller. Another addition to the MidSize Fleet occurred in 2001 when Exmar chartered CLIPPER SUN (22.180m³ built 1978). The Norsk Hydro ships redelivered with effect from end December 2002. At the same time ZEEBRUGGE (24.000m³ blt 1983) was sold to Indian interests and chartered back for three years as MAHARSHI DATTATREYA.

In 2003 Exmar, Bergesen and A.P.Møller placed orders for five 38.000m³ LPG/C’s with Daewoo Shipbuilding & Engineering in Korea delivering in 2005/6 thus emphasising the commitment to this size of ship in the future. The first, BERGE ODIN, was delivered in late 2005 and is now operating within the Midsize Fleet. Exmar’s LIBRAMONT and also MÆRSK JEWEL were delivered in the first half of 2006. The remaining two, BW SOMBEKE and MÆRSK JADE were delivered later in 2006.

LIBRAMONT 38.500m³

Late in 2003, Skandigas and I.M.Skaugen agreed to


establish a specialised Ethylene fleet, trading under the name of MNGC. As a result Exmar’s three 10.500m³ Polar class ships remained in the Skandigas joint venture but allocated to MNGC’s operation. On the LNG side of the market, Exmar’s direct involvement was limited to the operation of the 131.000m³ LNG/C METHANIA. Before the end of 1999 it became obvious that some attractive newbuilding prices were available from Korea and, following a comparatively short negotiation, agreement was reached in early 2000 to build a 138.000m³ at Daewoo for delivery in 2002 (Hull N° 2206 named EXCALIBUR) with some options for further tonnage. In conjunction with this, negotiations had started with a then established US utility, Enron, to time charter the ship for long-term business to cover planned expansion in India or Venezuela. Once again, after a very short time agreement was concluded in April 2000. Further discussions took place during the middle of 2000 with the intention to time charter a further vessel for eventual sublet to Korean importers Kogas however these failed at the end of August but, by that time, sufficient confidence was foreseen in the future market and, as a result, an option for a further vessel was declared at Daewoo (Hull N° 2208) for delivery in early 2003. In December 2000 agreement was reached with Mitsui O.S.K. Lines to form a 50/50 equity joint venture, firstly, in Hull N° 2208 and subsequently in Hull N° 2213, a further option declared at Daewoo for delivery in 2003. Discussions had then commenced with another US utility, El Paso, to time charter these ships which were concluded in April 2001. Following this, an option was again declared with Daewoo for Hull N° 2218 for delivery in 2004. Negotiations continued with El Paso for a further two vessels concluding at the end of June with two additional 20-year time charters delivering in 2004 as a result of which Hull N°2219 was declared with Daewoo. By that time the joint venture had concluded an agreement with another Korean shipyard, Samsung, for the construction a 138.000m³ LNG/C for delivery in early 2004 (Hull N° 1406) along with options for further newbuildings. This ship was subsequently fixed on long-term basis to the Qatari producer, RasGas.

LNG/C EXCALIBUR off Trinidad

Following the events of 11th September 2001 and the general difficulties in obtaining permits to build necessary land-based LNG storage in the USA, resources were devoted by El Paso, in conjunction with Exmar, to produce a viable off-shore discharging system and, in the 2nd Quarter of 2002, El Paso announced its Energy BridgeTM system involving the conversion of 3 of the ships on order into regasification vessels (Regas) enabling them to discharge direct into the pipeline grid in the USA from an off-shore location.


With its spectacular collapse, at the end of 2001, Enron, the company to whom EXCALIBUR had been chartered for 25 years filed for protection under “Chapter 11” as a result of which, after about six months deliberations with the Court, release of the ship was obtained in July 2002 and subsequently

fixed to the Franco-Belgian group, Tractebel, for two years delivery at the end of October 2002. The “knock on” effects of the Enron collapse were felt throughout the US energy market and continual pressure on El Paso eventually resulted in downgrading by the rating agencies at the end of 2002. This was followed in February 2003 by an announcement from El Paso that they would exit the LNG business. Discussions were held and an agreement was reached whereby the five time charters were terminated. The last order

with the shipyard was cancelled as was the regasification on a further ship. Exmar was then left with the responsibility to market two conventional and two Energy BridgeTM vessels. The first of these conventional vessels and second in the series of Exmar’s newbuilding LNG carriers, Hull N° 2213, named EXCEL, was delivered in September 2003 and commenced trading on a short-term basis with the Algerian state company, Sonatrach. She then delivered in April 2004 to the Omani Government under a 5-year time charter. Late in 2003, Exmar and MOL restructured the shareholding in the remaining DSME newbuildings and Samsung newbuildings with MOL exiting from participation in the two Regas vessels and Exmar from participation in Hull N°2219 and the Samsung newbuildings. Subsequently, at the end of 2003, Exmar and a newly-formed LNG operator in Texas, Excelerate Energy, entered into an agreement for the long term timecharter of the first regasification vessel (Hull N° 2208), named EXCELSIOR and delivered in January 2005. In addition, Excelerate Energy took over the shipbuilding contract of Hull N° 2218, named EXCELLENCE, at DSME which was delivered in May 2005. Both these ships are still managed by Exmar Shipmanagement.

LNGRV EXCELSIOR

In June 2003 a partial demerger of CMB nv into CMB nv and Exmar nv was announced and, with effect from 23rd June, Exmar’s shares were listed and traded separately on Euronext Brussels. The effect of this was to transfer the gas and offshore activities of CMB into a new company, Exmar, leaving the dry bulk and crude oil activities under CMB. In November 2003 the opportunity was taken to dispose of the oldest of the VLGC’s, FLANDERS GLORIA. The fleet of small pressurised ships was expanded in April 2005 with the acquisition of the 1996-built 4.000m³ HANJIN YINGKHOU which was renamed LADY FATIME. Subsequently agreement was reached to acquire the 11-ship fleet of Far East Shipping of Japan consisting of 3.200/5.000m³ pressurised vessels. This, together with LADY FATIME, was done in joint venture with partners, Lauritzen Kosan, and the ships were entered into the Exmar Kosan Pool operated from Hong Kong. In April 2004, continuing Exmar’s confidence in the principle of on-board regasification, an order for a further LNGRV was placed with DSME (Hull N° 2237 named EXCELERATE) jointly by Exmar and an affiliate of Excelerate Energy for delivery in October 2006. The ship then delivered on long-term time charter to Excelerate Energy.


At a similar time an agreement was reached with some Japanese investors to sell the three ‘Polar’ class ethylene/chemical carriers with time charters back for a period of 5 years each.

In December 2004 FLANDERS TENACITY (84.000m³, built 1996) was sold to Japanese interests and bareboat chartered back for 10 years together with various options. Following this, opportunity was taken in early 2005 to place an order for two 84.000m³ VLGC’s at DSME in Korea with delivery in 2007/8. The market for the small pressurised vessels saw some considerable improvement over the winter of 2004/5 and it was thus felt opportune to dispose of two of the older vessels in this sector, owned jointly by Exmar and Lauritzen Kosan, thus LADY KIRA (5.000m³ built 1994) and BIRGIT KOSAN (5.000m³, built 1995) were sold in early 2005. During the first Quarter of 2005, Bibby Line decided to exit from the LPG sector by disposing of their three ships, namely LANCASHIRE (35.000m³ built 2002), OXFORDSHIRE (35.000m³ built 1997) and CHESHIRE (28.000m³ built 1989). Exmar purchased OXFORDSHIRE, and renamed her BRUSSELS, whilst Bergesen purchased the other two. All three remained in the MidSize Fleet.

In conjunction with the projected large increase in supply of LNG in the years to come, there will be a substantial increase in available LPG which will be required to be transported partly as a result of more stringent restrictions on flaring, apart from increasing demand. The age profile of the fleet of very large LPG ships (VLGC’s) shows that the first generation

of ships built in the 1970’s will be phased out of service before the end of the decade and require replacement. Exmar’s two ships in this class are employed in the Bergesen fleet and, thus, in order to remain in the forefront of this sector it was decided, in cooperation with Bergesen, to order a series of

LNGRV EXCELSIOR Zeebrugge


VLGC’s for delivery in 2007/8. Exmar confirmed the order for two 84.000m³ ships with DSME in March 2005 whilst Bergesen ordered two 82.000m³ ships at Hyundai. Following further discussions with Excelerate in the early months of 2005, agreement was finally reached whereby, in conjunction with the conclusion of a 20 year time charter, an order was placed in June 2005 with DSME for a 150.900m³ LNG regasification vessel (Hull N°2254 to be named EXPLORER) with delivery in 2008. This represents a further commitment to the principle of the offshore discharge of natural gas by pipeline direct into the onshore distribution system. In June 2005, pursuant to a new cooperation agreement, the LNG/C METHANIA was sold to the long-term charterers, Distrigas, however Exmar’s in-house managers, Tecto, renamed Exmar Shipmanagement, still retained the technical and crewing management of the ship. This marked the end of a 27 year association which provided the Group’s entry into the LNG market. In August 2005 agreement was reached with our partners in Exmar Kosan Ltd whereby Exmar’s fully pressurised ships were sold to German/Danish interests who replaced Exmar in the joint venture with Lauritzen Kosan. Deliveries of the ships were completed by the end of 2005. Apart from an interest in four joint venture ships, this meant that Exmar exited from this sector of the market. As a result of increasing confidence in the concept of on-board regasification in, not only mature markets such as the USA but also, other emerging markets, an order was placed in November for a 5th LNGRV at DSME (Hull N°2263), to be named EXPRESS, for delivery in the 2nd Quarter of 2009 upon which she will be time chartered to Excelerate Energy for 20 years. This was followed in early 2006 with an order for a further two LNGRV’s of similar capacity at DSME (Hull N°’s 2270/1), to be named EXQUISITE and EXPEDIENT however these, at that time, did not have committed employment. They will be delivered in the 3rd and 4th Quarters of 2009. In late 2006 Eitzen Gas who had the Polar vessels on time charter came to an arrangement with both the headowners and Exmar whereby they acquired 100% of these vessels as a result of which, in November, Exmar made an exit from the semi-refrigerated/ethylene market after a period of some 16 years. During the 2nd Quarter of 2007, an option was declared at DSME and a contract signed for the construction of the eighth LNGRV, again with a capacity of 150.900m³ for delivery in 2010 and to be named EXEMPLAR. Whilst there is no committed employment considerable faith was shown in the project by Excelerate Energy who took equity participation in, not only this ship, but also EXQUISITE and EXPEDIENT


2. EXMAR’S TRADING ENVIRONMENT AND FUTURE OUTLOOK Exmar has established itself as a major operator in marine transportation of LNG, LPG, Ammonia and chemical gases.

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1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Annual Liftings by Cargo Types

Ammonia

LPG

LNG

VCM

Ethylene

Liquids

Other Gases

Exmar, today, is the market leader in the midsize segment (20.000-40.000 m³ vessels) operating the most modern fleet. At the same time, an active presence in the small ship segment as well as the ownership of two modern VLGC’s make Exmar an important participant in the world market. Generally speaking, the company has earned the reputation of being an important quality owner keen on its independence enabling it to develop privileged relationships with both producers and end-users worldwide.

3. THE EXMAR OPERATION

MIDSIZE The segment of 20.000-43.000m³ vessels, which is commonly described as the ‘MidSize’, constitutes Exmar’s core business. Demand for such carriers is mainly drawn from LPG and Anhydrous Ammonia transportation. The LPG market is the most important market for gas carriers overall. Exmar’s presence in this segment gained considerable momentum with the creation of the ‘MidSize Fleet’, (see Fleet List). Since 1986, Exmar’s policy has been to


become a major operator of modern midsize tonnage in order to generate long-term business opportunities. It has gradually built up an operation of 23 ships in this segment alone. In real terms this represents a carrying capacity close to 800.000m³ with just under 57% built since 1990. Its first-class operations and commercial reliability have enabled Exmar to develop privileged relationships with major charterers worldwide. Confidence in the future of this sector was shown in late 2003 when an order was placed jointly with Bergesen Worldwide and A.P.Møller for five 38.000m³ LPG/NH3 ships for delivery between 2005 and 2006. Exmar have ownership in two of these vessels, the first of which, named LIBRAMONT, was delivered in May 2006 and the second, named BW SOMBEKE, was delivered in October 2006. Whatever further expansion may lie ahead, the spirit behind the MidSize Fleet will remain as focused on quality shipping as it has been from the very start.

LNG As has already been mentioned earlier, Exmar’s entrée into the LNG market came when the operation of LNG/C METHANIA was transferred in the early 1990’s. Considerable experience has been built up

in such operation that is now being put to good use as the newbuildings are delivered commencing with EXCALIBUR in October 2002. As a result of increased globalisation for one thing, it is clear that demand for electricity supply will rise in the years to come and, therefore, the requirement for LNG, as one of the more environmentally–friendly fuel sources, inevitably increases. World trade in LNG is expected to grow by approximately 7/8% per annum in the next decade. With these thoughts in mind and an appetite in Korea to

seek orders from foreign customers, Exmar took the opportunity to place orders for these LNG/C’s at an optimum time to be ready for the expansion.

LNGRV EXCELSIOR Gulf Gateway

It was felt that that vision had been fulfilled in 2001 when all of the orders had been covered on business which would contribute from 2002 onwards. As stated earlier however, events outside Exmar’s control, starting with the Enron bankruptcy and then the El Paso downgrading and subsequent exit from LNG transportation, produced a new situation whereby EXCALIBUR was covered only for 2 years and the “El Paso” ships were required to seek alternative business. The order placed in June 2005 for an enlarged LNG regasification vessel, Hull N° 2254, to be delivered in 2008, represents a further commitment to the provision of flexible discharge arrangements whereby these ships, apart from having the ability to deliver at conventional terminals, can discharge natural gas either through a standard manifold or using the submerged turret system.


In October 2004 it was agreed with Golar LNG to join forces to create a fleet of LNG vessels that was capable of providing buyers and sellers with flexible transportation solutions. This arrangement involved EXCALIBUR together with GOLAR FROST (137.000m³ built 2004), GOLAR WINTER (138.000m³ built 2004) and GOLAR VIKING (140.000m³ built 2005) under the guise of GE LNG. As a result of both parties covering their spot tonnage, it was decided to terminate the arrangement in December 2005. The LNG Fleet now comprises the following:

Vessel Capacity M³

Year Built Yard Employment Status

DSME N° 2272 Energy Bridge 150.900 2010 DSME TBA Joint Venture DSME N° 2271 Energy Bridge 150.900 2009 DSME TBA Joint Venture DSME N° 2270 Energy Bridge 150.900 2009 DSME TBA Joint Venture

DSME N° 2263 Energy Bridge 150.900 2009 DSME Excelerate Energy Joint Venture

DSME N° 2254 Energy Bridge 150.900 2008 DSME Excelerate Energy Joint Venture

EXCELERATE 138.000 2006 DSME Excelerate Energy Joint Venture

EXCELLENCE 138.000 2005 DSME Excelerate Energy Managed

EXCELSIOR 138.000 2005 DSME Excelerate Energy Owned

EXCEL 138.000 2003 DSME GOSO Joint Venture

EXCALIBUR 138.000 2002 DSME Excelerate Energy Owned

METHANIA 131.000 1978 Boelwerf Distrigas Managed A further milestone was achieved in August 2006 when the first commercial ship-to-ship transfer of LNG was carried out between LNGRV EXCELSIOR and LNG/C EXCALIBUR in the Gulf of Mexico. A total of some 20,600m³ of LNG was transferred. As a result of this milestone in the LNG industry, the operational flexibility of the regasification vessels Exmar operates together with Excelerate Energy will be greatly enhanced. In October 2006 Excelerate Energy decided to convert the charter on EXCALIBUR to a longer-term venture by committing to a period of 15 years from early 2007 thus enhancing the flexibility of their Gasport programmes. Later in that month the joint venture company with Excelerate Energy took delivery of the third LNGRV EXCELERATE from DSME and simultaneously delivered her on charter to Excelerate Energy for 20 years.. In February 2007 the first commercial ship-to-ship transfer of a full cargo of LNG took place from EXCALIBUR to the 138.000m³ LNGRV EXCELSIOR at Scapa Flow off the Orkney Islands in the


United Kingdom. EXCELSIOR then proceeded to inaugurate the Teesside GasPort™ by discharging the first regasified LNG directly into the UK natural gas grid system. Following the discharge of this parcel the vessel proceeded to Cove Point, Maryland, to discharge a further parcel through the conventional terminal and, finally, completed discharge through the sub-sea buoy at the Gulf Gateway, thereby making use of all the vessel’s capabilities in one voyage. In the LNG sector of the market, Exmar has not only considerable investment in the provision of transportation solutions but also is now taking positions both upstream and downstream. Resources are being devoted to creating new natural gas entry points primarily within the European area by constructing either offshore tower mooring systems or quayside terminals both utilising the onboard regasification capabilities of the LNGRV’s.

VLGC This size of vessel (60.000-85.000 m³) is carrying, by far, the majority of the world transportation of LPG by sea. The bulk of this trade is from the Middle East to the Far East where the majority is under the control of Japanese and Korean operators on dedicated business, but a steady expansion out of, for example, South East Asia, Australia, Algeria and Nigeria has seen more independent operators taking positions. Historically, the main driving force for LPG has been supply, in the sense that increasing supply has always found additional demand outlets. The product is more and more sought after as a clean energy source and as a chemical feedstock. New demand markets are currently emerging in China and India.

Exmar has in the past deliberately sought to spread its portfolio, operating both owned and time-chartered tonnage against a balanced mix of spot trading and medium to long term commitments. In the same spirit as in the midsize segment, Exmar has carefully worked on becoming an independent quality owner. Today it owns 2 modern VLGC’s, and was the first Western shipowner who entered into longer-term ventures with major Japanese interests in this sector of the market.

FLANDERS TENACITY

Exmar’s VLGC’s are operated in the VLGC Fleet by the Norwegian owner, Bergesen Worldwide. This owner has, by far the greatest commitment in the West in this size of tonnage having ownership in 22 VLGC’s and now operates a fleet of 33 ships. These will be complemented in 2008 with the addition of the 4 newbuildings of which 2 will be from the Exmar Group.


POLAR SHIPS – 10.500m³ Ethylene/Chemical Since the beginning of Exmar there has been an involvement in the Ethylene sector of the business commencing with CORAL TEMSE (7.350m³ built 1981). In the late 1980’s Exmar took over the supervision and construction of three 10.500m³ Ethylene/Chemical carriers in the Italian shipyard, Bennetti. The ships, delivered in 1990/1, were traded on the spot market until 1999 when they were entered into the semi refrigerated pool operated by A.P.Møller in Copenhagen and, since 2003, they have been in the specialised Ethylene pool operated by Mærsk Norgas Gas Carriers (MNGC). This pool consisted of 34 ships in the 5/12.000m³ range and is primarily transporting such high value products as Ethylene, Vinyl Chloride Monomer, Propylene and Butadiene apart from LPG, Ammonia and some liquid chemicals. As has been stated before, these ships were sold to Japanese interests but time chartered back. They were subsequently relet to Danish interests who, thus, took over Exmar’s position in that Pool. They exercised an option whereby these ships were acquired outright in the November of 2006 following which Exmar’s interest in this sector of the market terminated.

SMALL SHIPS – 3.000-5.000 m³ pressurised

This segment of the fleet is utilised primarily for coastal movements of refinery produced liquefied gases. The containment system is very simple and the vessels are relatively inexpensive to construct and operate. The establishment in 2002 of a joint venture between Exmar and Lauritzen Kosan of Denmark, Exmar Kosan, was well received as a first step in establishing a fleet of modern pressurised tonnage. Although some of Exmar’s pressure tonnage was trading in the West, demand from China and South East Asian countries kept up the requirement for such vessels on shorthaul trades involving restricted receiving facilities.

With the acquisition of the Far East Shipping fleet in 2005, Exmar Kosan controlled some 21 ships in this category totalling about 80.000m³.

LADY HILDE off Fawley

In late 2005 a decision was taken whereby Exmar would divest itself of its interest in this sector of the market, as a result of which agreement was reached with German and Danish interests for the disposal of 8 of the 12 vessels with deliveries taking place by the end of 2005. The remaining 4, owned in joint venture with Lauritzen Kosan remained in the Unigas Kosan fleet until mid 2006 when they were acquired in full by Lauritzen-Kosan. As a result Exmar’s interest in this segment ceased. In early 2007 an opportunity was taken to enter into partnership with Hong Kong based owner, Wah Kwong, for 6 newbuildings of 3,500/5,000m³ in Japan for delivery in 2008/9.

4. CONTRACTS AND LONG-TERM COMMITMENTS Exmar’s gas operation is underpinned by a large portfolio of contracts which allows the company to hedge part of its exposure as well as to make optimal use of its fleet potential.


These commitments take the form of: 1. Contracts of Affreightment (COA) 2. Time-Charters (T/C)

At present over 60% of Exmar fleet is covered by COA and T/C., the most important of which consist of the following: LNG Government of the Sultanate of Oman Excelerate Energy, USA VLGC Itochu Corporation of Japan Midsize Duke Energy USA FMCL (a joint venture between Farmland Industries Inc and Mississippi

Chemical Corporation both of the USA) now replaced by Koch Nitrogen USA Mitsubishi Corporation

Petrobras, Brazil Potash Corporation of Saskatchewan

Saudi Basic Industries (SABIC) Sonatrach of Algeria Total, France

Transammonia, Paris-based Ammonia Traders Agrium of Calgary Petronas, Malaysia Semi-Refrigerated Kemira of Finland

5. SHIP MANAGEMENT

Exmar Shipmanagement, then known as Tecto, evolved in 1991 from the shipping and shipmanagement activities of the CMB Group. The expertise, developed over many years within the CMB Group, provided the platform for a long-term ship management strategy primarily in the transportation of LNG, LPG, Ammonia and petrochemical gases however this has been extended over some years into crude oil tankers (ULCC, VLCC and coastal), bulk carriers, container ships and offshore production and accommodation units. In order to emphasise the strategy of

providing a full range of maritime services, including shipmanagement, in 2006 it was decided to change the name to Exmar Shipmanagement as a 100% subsidiary within the Exmar Group. Today it manages the crewing and technical aspects for the parent group and its affiliates, as well as for third parties, for about 30 vessels. The types of vessels include LNG and LPG Tankers, container ships and coastal tankers, the majority of which fly the Belgian flag, one of the most competitive


national flags in Europe, following Exmar taking a leading role in the establishment of the Belgian Shipping Package. The Belgian Registry provides not only highly skilled Belgian officers at very competitive rates but also benefits from a package of tax incentives.

EXMAR SHIPMANAGEMENT maintains its commitment to the highest health, safety, security, environmental and quality standards, applicable to the maritime industry. Its ship management services are certified in accordance with ISO 9001(2000) and comply with the OCIMF Tanker Management Self Assessment guidelines. 1,600 qualified officers and crew, supported by 100 shore staff in offices in Antwerp, Luxembourg, Hamburg and Cyprus are continuously seeking to improve their performance.

6. OFFSHORE

Exmar Offshore is involved in the provision of floating equipment to the offshore oil and gas industry. This is carried out through the acquisition, engineering, conversion, procurement, construction and management of any type of floating production system (FPS), floating storage and offloading systems (FSO) or accommodation units.

Exmar Offshore Ltd. may therefore acquire vessels from its parent company Exmar, from third parties or order from new-building yards worldwide. Exmar Offshore Ltd. may enter into any type of alliance, cooperation, joint venture or subcontract


arrangement with reputable services supplier or equipment manufacturer. Finally, Exmar Offshore Ltd. may enter into any acceptable lease, bareboat charter, time charter, lease and operation agreement or sales agreement with reputable operators. Exmar has been involved in the offshore industry since the Eighties. Although it is recognised that Shipping and Offshore are two distinct industries with different technical objectives and contract culture, expertise in high-end shipping enhances the activities in offshore and vice versa. In 2001 CPTL (Total) awarded Exmar a contract for long term charter of an FPSO capable of processing 45,000 barrels of oil per day and with a storage capacity of 900.000 barrels. The unit, named FARWAH, was commissioned and installed offshore Libya in May 2003. Exmar Offshore was awarded a 5-year bareboat charter of an accommodation unit with Total Angola. This unit, named KISSAMA, was delivered after modification in June 2003. Since then the contract has been taken over by the Angolan State entity, Sonangol. Exmar Offshore decided in 2006 to invest in a floating production semi-submersible for the development of marginal deepwater oilfields without firm contract from an oil company. The design and detailed engineering of the OPTI Hull is performed by Exmar Offshore Company (Houston) and the detailed engineering for the topsides is handled by Mustang Engineering (Houston). In 2006 a building contract for the semi-submersible hull was secured with the Korean shipyard, Samsung Heavy Industries and the topsides contract was secured with, the Corpus Christi-based fabricator, Kiewit Offshore Services. The OPTI-EX hull will be completed in Korea end 2008. The production topsides will be mated to the hull in Corpus Christi and the completed unit will be ready for installation early 2009. Today, Exmar is actively promoting its OPTI-EX unit and had already extensive discussions with Gulf of Mexico based operators.


Semi-submersible OPTI-EX

Franship Offshore is engaged in Operation & Maintenance services for Offshore Terminals. It is managing the marine activities of the Girassol & Dalia FPSO’s in Angola. The company is also working on the Palanca FSO terminal in Angola. DV Offshore, based in Paris, is a consultancy engineering firm that has been providing services to the offshore industry for over 25 years. Incorporated in 1973, it is an independent firm of consulting engineers specialised in all the technical aspects of marine engineering and operations with extensive experience in over 25 FSO and FPSO units to date. Exmar Offshore Company, based in Houston Texas, has developed a design series of deepwater semi-submersible offshore platforms which received industry wide appreciation. These platforms are suitable for drilling as well as for production applications and are targeted at projects up to 3,000 metres water depth. These designs are available in moored as well as Dynamic Positioning configuration. Other activities include engineering and design services related to offshore service vessels, mobile offshore drilling units, offshore LNG and LPG installations and conventional vessels in general. Exmar Offshore also has representative offices in Luanda and Tripoli providing local services in those areas.


7. EXMAR WORLDWIDE Whilst Exmar has its headquarters in Antwerp, it also has offices in London (Exmar UK), Houston (Exmar Shipping USA) and Luanda from where regional cover can be available. Exmar Shipping USA was set up to provide services to, not only the LNG charterers in that area but, also to monitor Exmar’s involvement in long-term Ammonia business in the Caribbean.

8. FINANCIAL STATUS

Key Consolidated Figures

Units: US$million Actual Q1/2007 Actual 2006 Actual 2005

Turnover 114.9 503.1 451.7 EBITDA 31.9 160.3 157.0 EBIT 18.9 110.8 111.7 Net Profit 9.7 76.3 81.5 Vessels book value - 1,066.1 839.6 Net Financial debt - 667.8 535.3 Equity - 392.5 261.2

REBIT Contribution

-20

-10

0

10

20

30

40

50

2003 2004 2005 2006

USD

mill

ion LPG / NH3

LNGOffshoreServices


Key Figures – LNG

Units: US$million ActualQ1/2007 Actual 2006 Actual 2005

EBITDA 12.5 46.1 43.2

EBIT 8.3 31.9 29.9

Net Profit 2.3 7.8 9.6

Vessels book value - 571.4 415.7

Financial Debt - 539.6 406.3

Key Figures – LPG


EBITDA 15.6 91.6 105.8

EBIT 9.1 65.9 83.8

Net Profit 6.6 59.4 64.0


Financial debt - 187.5 190.5

Key Figures – Offshore


EBITDA 3.5 15.5 9.2

EBIT 1.8 8.6 2.4

Net Profit 1.3 4.3 -0.8


Financial debt - 40.1 46.2


Documents

profile May '07 - SMARTfieldthe LNG/C METHANIA that was on long-term business to the Belgian importer, Distrigas and, thus, entered the world of LNG. In 1993 LADY BARBARA (3.500m³