2013 THIRD QUARTER REPORT

2013 THIRD QUARTER REPORT Investor Relations contact Tom A. Haugen Phone: + 47 55 27 46 69 Mobile: + 47 90 59 69 44 [email protected] Media con...
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2013 THIRD QUARTER REPORT

Investor Relations contact Tom A. Haugen Phone: + 47 55 27 46 69 Mobile: + 47 90 59 69 44 [email protected]

Media contact Margrethe Gudbrandsen Phone: + 47 55 27 45 48 Mobile: + 47 48 07 47 47 [email protected] www.odfjell.com

Third Quarter Report 2013 Odfjell SE - Consolidated

Highlights 3Q 2013 • EBITDA of USD 37 million, reflecting stable earnings both from chemical tankers and tank terminals. • Time-charter results down 4 % compared with last quarter due to increased voyage expenses. • Odfjell Terminals (Rotterdam) is working on a revised business plan, scheduled to be completed within year end, and has decided to possibly redevelop most of the older areas of the terminal. Current book value of OTR assets is USD 241 million. As a possible consequence of the revised business plan, impairment of certain OTR assets, including customer relationships and goodwill totalling net USD 54 million, will be evaluated. • Odfjell signed shipbuilding contracts with Nantong Sinopacific Offshore & Engineering Co., Ltd for the construction of four LPG/Ethylene gas carriers of 17,000 cbm. The contract includes options for additional vessels. • Two transactions in the Norwegian bond market were completed, rising in total NOK 500 million.

Key figures (USD mill. unaudited) Revenue Gross result EBITDA EBIT Net finance Tax Net result (loss)

3Q13. 296 66 37 23 (13) (0) 9

2Q13. 294. 70. 36. 8. (10) (0) (2)

YTD2013 882 193 100 25 (29) (2) (6)

3Q12. 276 41 8 (25) (15) 2 (39)

YTD2012. 916 170 76 (20) (49) (2) (71)

FY2012 1,212. 222. 93. (43) (68) 0. (111)

Business segments Chemical Tankers Activity over the summer and through the third quarter held steady, and was in line with the second quarter on both contract nominations and spot activity. Contract coverage was 52% at the end of the third quarter, with the current contract/spot balance allowing flexible trading of our deep-sea fleet. Odfjell’s regional trade is gradually improving. No significant technical or operational issues were experienced during the quarter. The average price of bunker purchased during the quarter was approximately USD 623 per metric ton, basically the same as previous quarter. About USD 3.4 million was collected through bunker adjustment clauses, in addition to USD 1.8 million gained under bunker 2

hedging contracts, however net bunker cost per tonne increased due to overall less hedge coverage. Cancellation of some time-charter vessels prior to expiration resulted in compensation to Odfjell of about USD 4.7 million this quarter, included in Gross result.

Chemical Tankers (USD mill) Revenue Gross Result EBITDA EBIT Net bunker per tonne (USD)

Indices Odfix (1990 =100)1 Opex (2002 = 100)²

3Q13. 262 52 30 7 565

2Q13. 255 56 30 6 542

YTD2013 771 151 79 9 555

3Q12 245 38 15 (9) 516

YTD2012 808 124 53 (17) 537

FY2012 1,066 158 65 (35) 542

30.09.13

30.06.13

30.09.12

31.12.12

120 168

129 175

102 173

110 173

¹ The Odfix index is a weighted time-charter earnings index for a selection of vessels. ² The Opex index includes owned and bareboat chartered vessels.

LPG/Ethylene Third quarter the spot market was below expectation, mainly because Asian refiners followed their Middle East counterparts in taking their plants through planned and unplanned shutdowns. This led to a distressed market over the last quarter. In addition, vessels previously tied up on long-term charter contracts were released to the spot market. West of Suez the market was slightly better, with several cargoes moving transatlantic. US exports have also improved. Total revenues for third quarter came in at USD 2 million, with EBITDA at minus USD 1 million. Fleet changes In September Odfjell signed shipbuilding contracts with Nantong Sinopacific Offshore & Engineering Co., Ltd for the construction of four LPG/Ethylene carriers of 17,000 cbm. Deliveries are scheduled between October 2015 and May 2016, and the contract price in total is about USD 180 million. We have secured options for delivery of up to four additional gas carriers. This newbuilding order is an important step in our strategy to grow and become a significant operator in the gas market. In August we entered into two new time-charter contracts, the Golden Top (12,705 dwt) and Southern Koala (21,290 dwt). In November Odfjell, jointly with our 50/50 Chilean joint venture partner CSAV, purchased the Bow Andino (16,121 dwt), which until the purchase was on long-term time-charter contract to Odfjell. Also in November, Odfjell sold Bow Eagle (24,700 dwt), backed by a one-year time-charter with the new owner. The newbuilding programme for four 46,000 dwt coated chemical tankers at Hyundai Mipo Yard in Korea for delivery between January and July 2014 is on schedule. 3

Fleet additions (last 12 months) November 2013 Bow Andino October 2013 Bow Eagle August 2013 Southern Koala August 2013 Golden Top July 2013 Celsius Mayfair June 2013 Bow Pioneer May 2013 Bow Engineer March 2013 UACC Messila March 2013 Bow Nangang March 2013 Chembulk Sydney January 2013 Chembulk Wellington November 2012 Bow Dalian October 2012 Chemroad Hope Fleet disposals, owned (last 12 months) October 2013 May 2013 January 2013 November 2012 October 2012

Bow Eagle Bow Cheetah Bow Leopard Bow Fraternity Bow Lion

DWT 16,121 24,700 21,290 12,705 20,000 75,000 30,086 45,352 9,000 14,271 14,312 9,000 33,552 DWT 24,700 40,257 39,512 45,507 39,423

Built 2000 1988 2010 2004 2007 2013 2006 2012 2013 2005 2004 2012 2011 Built 1988 1988 1988 1987 1988

Tanks Stainless Coated Stainless Stainless Stainless Coated Coated Coated Stainless Stainless Stainless Stainless Stainless Tanks Coated Coated Coated Coated Coated

Transaction Purchase, J/V 1 year TC 2 years TC 2,5 year TC 2 year TC New delivery Purchase 1 year TC New delivery 1-2 year TC 1-2 years TC New delivery 1 year TC Transaction Sale Recycling Recycling Recycling Recycling

Tank Terminals Our shareholding in tank terminals business contributed an EBITDA of USD 7 million in third quarter, the same as in previous quarter. With the exception of OTR, terminal results were largely in line with expectations. Increased throughput in the United States beginning end of second quarter has continued, and has extended into early fourth quarter. Activity in Asia is broadly speaking on budget, but occupancy challenges have emerged in Korea as a result of considerable additional capacity coming on stream in Ulsan the past two years. OTR’s third-quarter EBITDA came in at minus USD 7.9 million, only a slight improvement compared to second quarter’s minus USD 8.4 million. The third-quarter EBITDA result included USD 3.0 million in non-recurring items. Capacity approved for use at the end of the third quarter was just over 1 million cbm. Occupancy at the end of September was 85% of commercially available capacity. All tanks in the new part of the terminal are in operation. Active cost control efforts continue. New regulatory requirements and the submission of an application by OTR for a renewed environmental permit, have made it prudent to halt temporarily further re-commissioning of old tank capacity at the terminal. In the meantime OTR has initiated an intensive process of developing a revised business plan. This plan, which is scheduled to be completed within year end, will reflect the regulatory environment and address future business opportunities given the strategic location of the terminal. 4

Current book value of OTR assets is USD 241 million. As a possible consequence of the revised business plan, impairment of certain OTR assets, including customer relationships and goodwill totalling USD 54 million, will be evaluated.

Tank Terminals (USD mill) Revenue Gross result EBITDA EBIT

EBITDA by geographical segment (USD mill.) 1 Europe North America Asia Middle East Total

3Q13 33 13

2Q13 36 16

YTD2013 104 45

3Q12 32 4

YTD2012 111 49

FY2012 145 63

7 17

7 3

22 20

(7) (16)

23 (3)

27 (8)

3Q13

2Q13

YTD2013

3Q12

YTD2012

FY2012

(8) 4 7 4

(9) 3 7 5

(25) 10 21 15

(21) 4 7 4

(22) 11 22 13

(32) 14 27 18

7

7

22

(7)

23

27

¹ Revenue and profit from the terminals included in the Lindsay Goldberg transaction in 2013 are recognized according to the new ownership percentages from 1 September.

Finance In September Odfjell completed two transactions in the Norwegian bond market. NOK 400 million was raised through a tap issue of the existing senior unsecured bonds maturing in December 2015, following which a total of NOK 600 million remains outstanding. Additional NOK 100 million of our own bond holdings (ODF04), maturing in April 2017, were reissued, following which the total amount outstanding is NOK 600 million. Both offerings were oversubscribed. The net proceeds from the transactions will be used for repayment of bonds maturing in December and for general corporate purposes. Two of the four vessels under construction in Korea have been financed through a long-term sale/lease-back structure, which will be effective at delivery of the vessels. Financing of the two remaining vessels is expected to be concluded soon. Over the next two quarters, financing covering 5 – 6 existing vessels will mature. We are in the process of refinancing these vessels at terms more favourable than the current financing. The agreement for the refinancing of the terminal in Rotterdam was signed in the beginning of November. The refinancing of existing debt will generate surplus liquidity, and contains an additional tranche for drawing additional funds against completed capital expenditure projects. Following the completion of the Lindsay Goldberg transaction, Odfjell has booked a total capital gain of USD 24.5 million. USD 19.5 million of this gain was booked in the third quarter, and USD 5 million was booked in the second quarter. Profit and loss figures from the 5

terminals included in the transaction are recognized according to the new ownership percentages from 1 September. Key figures (USD mill.)

3Q13

2Q13

3Q12

4Q12

Cash and available-for-sale investments Interest bearing debt Net interest bearing debt Available drawing facilities Total equity

213 1,326 1,113 102 829

235 1,339 1,104 0 832

131 1,286 1,156 31 952

175 1,221 1,046 94 914

33.8%

31.5%

38.1%

36.9%

Equity ratio

Shareholder information By end September, Odfjell A and B shares were trading at NOK 40.10 and NOK 39.00 respectively, against NOK 26.80 and NOK 26.00 respectively at the close of the previous quarter. In the same period the Oslo Stock Exchange Benchmark Index gained 7% and the Transportation Index gained 15%. As of 30 September 2013 Odfjell had a market capitalization of about NOK 3,400 million, which is equivalent to about USD 576 million.

Prospects The US economy and the US dollar are finally looking up, which is good news for our business generally. The European economy is still lagging but is showing some modest improvement. The big question is the strength of China’s economy. Excessive credit growth, rising local government debt and weaker export momentum may cap the Chinese recovery, from the last two quarters of slowdown. Based on the above we expect a slow but steady increase in demand for our services. Ordering of product tankers is picking up, whilst the orderbook within the core chemical segment still remains modest. We expect the final quarter of 2013 to be similar to or slightly better for our chemical tankers than the third quarter. As to terminals, with the exception of Odfjell Terminals (Rotterdam), we expect continued stable results.

Bergen, 13 November 2013

6

ODFJELL GROUP YTD 2013

FY 20123)

YTD 20123)

1Q13

2Q13

3Q13

3Q123)

291. 0. (122) (44) (68) 58.

294. 0. (116) (39) (69) 70.

296. 0. (127) (37) (68) 64.

276. 0. (118) (43) (75) 41.

882. 1. (365) (121) (205) 193.

916. 0. (403) (130) (214) 170.

1 212) 1) (532) (173) (285) 222.

General and administrative expenses Operating result before depreciation, amortisation and capital gain (loss) on non-current assets (EBITDA)

(32)

(34)

(28)

(33)

(93)

(94)

(129)

27.

36.

37.

8.

100.

76.

93.

Depreciation Capital gain (loss) on non-current assets Operating result (EBIT)

(31) (1) (6)

(31) 3. 8.

(33) 19. 23.

(33) 0. (25)

(95) 20. 25.

(98) 2. (20)

(132) (4) (43)

Interest income Interest expenses Other financial items Currency gains (losses) Net financial items

1. (13) 4. 2. (6)

1. (12) 1. (0) (10)

2. (14) (5) 4. (13)

1. (14) (2) (1) (15)

5. (39) 0. 5. (29)

2. (39) (10) (2) (49)

3) (53) (16) (3) (68)

Result before taxes

(11)

(2)

10.

(40)

(4)

(68)

(111)

Taxes Net result

(2) (13)

(0) (2)

(0) 9.

2. (39)

(2) (6)

(2) (71)

0) (111)

STATEMENT OF COMPREHENSIVE INCOME (USD mill) Gross revenue Net income from associates and joint ventures Voyage expenses Time-charter expenses Operating expenses Gross result

OTHER COMPREHENSIVE INCOME Net other comprehensive income to be reclassified to profit or loss in subsequent periods: Cash flow hedges changes in fair value Cash flow hedges transferred to profit and loss statement Net gain/(loss) on available-for-sale investments Exchange rate differences on translating foreign operations

(2). (2). (0). (4).

(1) (0) (0) 3.

8. (3) 0. (10)

21 (6) 1. 6.

4. (6) 0. (11)

27. (12) 1. 4.

26)) (15)) 1)) 11))

Net other comprehensive income not being reclassified to profit or loss in subsequent periods: Net actuarial gain/(loss) on defined benefit plans Other comprehensive income

-... (9).

-. 2..

-.. (5).

(3) 19

-.. (12).

(8) 11

(10)) 13...

Total comprehensive income

(22).

(1)

5..

(19)

(18)

(58)

(98)..

Net result allocated to: Non-controlling interests Owner of parent

0. (13)

0. (2)

0 9

0. (39)

0. (6)

0. (71)

0) (111)

Total comprehensive income allocated to: Non-controlling interests Owner of parent

0. (22)

0. (1)

0 5

0. (19)

-. (18)

0. (58)

0) (97)

Earnings per share (USD) – basic/diluted

(0.16)

(0.03)

0.12

(0.49)

(0.08)

(0.90)

(1.37)

7

STATEMENT OF FINANCIAL POSITION (USD mill) Intangible assets Ships Newbuilding contracts Tank terminals Other non-current assets Investments in associates Non-current receivables Total non-current assets

1Q13

2Q13

3Q13

3Q123)

FY20123)

107 1 198 88 441 76 22 65 1 996

107 1 272 40 454 75 22 74 2 044

107 1 256 46 482 77 22 48 2 038

113 1 194 120 614 74 23 55 2 192

110 1 190 103 448 70 23 49 1 993

Current receivables Bunkers and other inventories Derivative financial instruments Available-for-sale investments Cash and cash equivalents Total current assets Assets held for sale Total assets

168 19 6 15 118 325 223 2 543

162 25 1 9 226 423 173 2 641

165 31 3 10 203 412 2 451

136 25 12 22 109 303 2 495

139 37 7 17 153 358 224 2 569

199 626 7 832

199 633 832

199 630 829

80 834 6 921

83 825 7 914

Non-current liabilities Derivatives financial instruments Non-current interest bearing debt Total non-current liabilities

127 15 1 041 1 183

123 15 1 095 1 233

118 17 1 128 1 262

144 17 1 149 1 311

130 16 995 1 141

Current portion of interest bearing debt Derivative financial instruments Current liabilities Total current liabilities Liabilities held for sale Total equity and liabilities

243 20 137 400 129 2 543

244 13 149 406 171 2 641

198 12 150 360 2 451

137 27 100 264 2 495

226 24 136 386 129 2 569

Paid in equity Other equity Non-controlling interests Total equity

Paid in equity

Exchange rate differences

Cash flow hedge reserves

Available for sale reserve

Retained equity

Total other equity

Noncontrolling interests

Total equity

Equity as at 1.1.2012 3) Comprehensive income Equity as at 30.09.2012

80 -. 80

13 4 17

(23) 15. (8)

1 1 2

901. (78) 823.

892. (58) 834.

6. (0) 6.

979. (58) 921.

Equity as at 1.1.2013 Comprehensive income Other adjustments Share repurchases Disposal minority Equity as at 30.09.2013

83 -. -. (3) -. 80

24. (11) -. -. -. 13.

(12) (1) -. -. -. (13)

0 0 -. -. -. 1

812 (6) (18) (39) -. 749

824. (18) (18) (39) -.. 750

6. -. -. -. (6) -.

914. (18) (18) (42) (6) 829

STATEMENT OF CHANGES IN EQUITY (USD mill)

8

1Q13

2Q13

3Q13

3Q123)

YTD2013

Earnings per share (USD) - basic/diluted Return on total assets 1) Return on equity 1) 1) Return on capital employed

(0.16) 0.1% (5.5%) (0.9%)

(0.03) 2.3% (2.1%) 1.2%

0.12 3.00% (2.4%) 1.7%

(0.49) (8.0%) (16.1%) (4.9%)

(0.08) 1.50% (1.7%) 1.2%

(0.90) (1.7%) (9.7%) (1.2%)

(1.37) (2.3%) (11.3%) (2.0%)

FINANCIAL RATIOS 2) Average number of shares (mill.) Basic/diluted equity per share (USD) Share price per A-share (USD) Debt repayment capability (Years) Current ratio Equity ratio

82.0 10.5 5.0 14.8 1.0 32.7%

80.2 10.6 4.5 10.6 1.0 31.5%

78.6 10.5 6.68 15.5 1.1 33.8%

78.6 12.0 4.0 NA 1.1 36.9%

79.7 10.5 6.68 12.1 1.1 33.8%

78.6 12.0 4.0 35 1.1 36.9%

80.6 11.9 4.3 46 1.1 35.6%

5.83

6.03

6.0

5.71

6.00

5.71

5.59

1Q13

2Q13

3Q13

3Q123)

YTD2013

YTD2012 3)

FY2012

(11) (11) 31. 1. 18. (4) 1.

(2) (14) 31. (3) (7) (6) 2.

10. -. 33. (19) (5) (9) (17)

(40) 2. 33. -. 1. 4. 2.

(4) (25) 95. (20) 6. (19) (15)

(68) (18) 98. (2) 12. 14. (2)

(111). 1.. 132.. 4.. (1) 12. (5)

(4) (2) (39) (20)

(2) 3. 108. 111.

4. (4) (72) (80)

1. 1. (2) 2..

(2) (2) (4) 10.

3. 2. (7) 30..

4. 3. (8) 31.

4. (25) 1. -.. 2. (14) (32)

4. (77) (0) 42. 5. (3) (29)

(8) (0) 50. (0) 30. 71.

-. (111) -. (1) 1. (1) (112)

8. (111) 1. 92. 7. 13. 10.

35. (163) (21) -. 3. 5. (142)

45. (212) (21) -.. 9. 12. (168)

PROFITABILITY

USD/NOK rate at period end

CASH FLOW STATEMENT (USD mill) CASH FLOW FROM OPERATING ACTIVITIES Profit before income taxes Taxes paid in the period Depreciation and impairment Capital (gain) loss on non-current assets Inventory (increase) decrease Trade debtors (increase) decrease Trade creditors increase (decrease) Difference in pension cost and pension premium paid Effect of exchange differences Other current accruals Net cash flow from operating activities CASH FLOW FROM INVESTING ACTIVITIES Sale of non-current assets Investment in non-current assets Investments in shares and in other companies External investments in terminal companies Available-for-sale investments Changes in non-current receivables Net cash flow from investing activities

YTD2012 3)

9

FY2012 3)

1Q13

2Q13

3Q13

3Q12

YTD2013

YTD2012

FY2012

CASH FLOW FROM FINANCING ACTIVITIES New interest bearing debt Payment of interest bearing debt Treasury shares transaction Net cash flow from financing activities

100. (41) (42) 18.....

103. (76) -.. 27.

83. (97) -. (14)

103. (26) -.. 77..

287. (214) (42) 31.

224. (183) -.. 40.

439. (361) 33. 111.....

Effect on cash balances from currency exchange rate fluctuations Net change in cash and cash equivalents

(1) (35)

(0) 109.

0. (23)

-. (32)

(1) 50.

(0) (72)

(0) (27)

Opening cash and cash equivalents Ending cash and cash equivalents

153 118

118. 226.

226 203

141 109

153 203

180 109

180. 153.

1)

2)

3)

Return ratios are based on annualised results, except for non-recurring items that are included in the relevant period. On 1 October 2012 Odfjell SE entered into a Total Return Swap (TRS) agreement with DNB Markets. The TRS comprised 5,891,166 A-shares and 2,322,482 B-shares with pre agreed strike prices. The TRS was terminated 5 February 2013. See note 7.

Notes to the consolidated financial statements Note 1 – Accounting principles Odfjell SE is ultimate parent company of the Odfjell Group. Odfjell SE is a public listed company traded on the Oslo Stock Exchange. The company’s address is Conrad Mohrsv. 29, Bergen, Norway. Basis of preparation The interim consolidated financial statements for Odfjell Group have been prepared in accordance with International Accounting Standard IAS 34 “Interim Financial Reporting”. The interim financial statements are unaudited. Significant accounting principles The accounting principles used in the preparation of these financial statements are consistent with those used in the annual financial statements for the year ended 31 December 2012. These consolidated condensed financial statements should be read in conjunction with the 2012 annual financial statements, which include a full description of the Group’s accounting principles. IASB has issued some standards or Interpretation, which are effective from 1 January 2014 or later: IFRS 9 Financial Instruments IFRS 10 Consolidated Financial Statements IFRS 11 Joint Arrangement IFRS 12 Disclosure of Involvements with Other Entities IAS 27 Separate Financial Statement (revised) IAS 28 Investments in Associates and Joint Ventures (revised) It is expected that changes in IFRS 11 will have material effect in how Odfjell presents it joint arrangement. Net result will not be changed, while total assets will be reduced and equity ratio will increase. Odfjell has presented figures based on equity method in a separate note, see note 9. All other changes are expected to have no or only immaterial effect on the financial statement.

10

Note 2 – Segment information

(USD mill) Chemical Tankers LPG/Ethylene Tank Terminals Gross revenue from internal customers Total gross revenue Chemical Tankers LPG/Ethylene Tank Terminals Total operating result before depreciation, amortisation and capital gain (loss) on non-current assets (EBITDA) Chemical Tankers LPG/Ethylene Tank Terminals Total operating result (EBIT) Chemical Tankers LPG/Ethylene Tank Terminals Total net result

1Q13 253. 4. 35. (1) 291 18. (0) 9.

2Q13 255. 3. 36. (1) 294. 30. (1) 7.

3Q13 262. 2. 33. (2) 296. 30. (1) 7.

3Q12 245. 1. 32. (2) 276. 15. (1) (7)

YTD13 771. 10. 104. (3) 882. 79. (2) 22.

YTD12 808. 1. 111. (4) 916. 53. (1) 23.

FY2012 1 066. 6. 145. (5) 1 212 65 1 27

27. (4) (1) (1) (6) (14) (2) 3. (13)

36. 6. (2) 3. 8. (11) (2) 10. (2)

37. 7. (2) 17. 23. (0) (2) 12. 9.

8. (9) (1) (16) (25) (23) (1) (16) (39)

100. 9. (4) 20. 25. (25) (6) 25. (6)

76. (17) (1) (3) (20) (58) (1) (13) (71)

93 (35) (0) (8) (43) (97) (1) (13) (111)

Chemical Tankers LPG/Ethylene Tank Terminals Assets held for sale Total assets

1 630. 59. 632. 223. 2 543.

1 661 57 750 173 2 641

1 615 65 771 -. 2 451

1 593 62 843 -. 2 498.

1 615 65 771 -. 2 451

1 593 62 843 2498

1 634 102 609 224 2 569

Note 3 - Net interest bearing liabilities (USD mill) Loans from financial institutions – floating interest rate Financial leases Bonds Current portion interest bearing debt (incl. bonds) Transaction costs Subtotal interest bearing debt Held for sale Total interest bearing debt Cash and cash equivalent Available for sale investments Interest bearing liabilities Held for sale Net interest bearing liabilities

3Q13 672. 169. 294. 198. (8) 1 325. -. 1 325. (203) (10) 1 113. -. 1 113.

3Q12 774. 195. 185. 137. (5) 1 287. -. 1 287. (109) (22) 1 156. -. 1 156.

FY2012 602. 191. 211. 226. (9) 1 221. 105. 1 325. (153) (17) 1 156. (17) 1 138.

(USD mill) New interest bearing debt Payment of interest bearing debt

3Q13 83. (97)

3Q12 103. (26)

FY2012 439. (361)

Note 4 – Transactions with related parties In the normal course of the conduct of its business, the Group enters into a number of transactions with related parties. Odfjell considers these arrangements to be on reasonable market terms.

11

Note 5 – Non-current assets (USD mill) Net carrying amount beginning (incl. held for sale) Investments in non-current assets Sale of non-current assets Depreciation and impairment Exchange differences Assets held for sale Net carrying amount end

3Q13 1 999. 110. (155) (92) (2) -.. 1 861.

3Q12 1 964. 163. (33) (95) 2. -. 2 001

FY2012 1 964. 213. (46) (127) (4) (188) 1 811.

3Q13 113. (4) 1. -.. (3) 107.

3Q12 115. (3) 1. -.. -.. 113

FY2012 115. (4) 2. (3) -.. 110.

Note 6 – Intangible assets (USD mill) Net carrying amount beginning (incl. held for sale) Depreciation and impairment Exchange differences Assets held for sale Disposal assets held for sale Net carrying amount end

Note 7 – Implementation of IAS 19 in 2012 figures According to IAS 19 Employee Benefits, which came into effect per 1 January 2013, the corridor mechanism has been removed and unrecognised net actuarial gain and losses are recognised in other comprehensive income. Changes have been applied for retrospectively in accordance with IAS 8 Accounting Policies. As a result of the changes the following adjustments have been made to the financial statements (USD 1 000): As of 1 January 2012: Decrease in pension assets: USD 2 800 Increase in pension liabilities: USD 20 623 Decrease in opening other equity: USD 23 423 As of 30 September 2012: Decrease in pension assets: USD 2 800 Increase in pension liabilities: USD 28 282 Decrease in other equity: USD 31 082 Net cost recognised in other comprehensive income: USD 7 659 As of 31 December 2012: Decrease in pension assets: USD 1 637 Increase in pension liabilities: USD 31 995 Decrease in other equity: USD 33 632 Net cost recognised in other comprehensive income: USD 10 210

12

Note 8 – Fair value and financial instruments The group classifies fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurement. The measurement used by Odfjell is either level 1 or 2, where level 1 is quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity an access at the measurement date, and level 2 are inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. For some non-derivative financial assets and liabilities we consider carrying amount to be the best estimate of fair value due to short maturity date and valid terms, i.e. current receivables and payables. During the third quarter of 2013 there have been no transfers between levels of the fair value hierarchy. The group accounts for transfers between levels of the fair value hierarchy from the date of the event or change in circumstances that caused the transfer. Assets and liabilities which are measured at fair value in the Consolidated Balance Sheet and their level of the fair value hierarchy were as follows: 3Q13 Level 1

3Q13 Level 2

3Q12 Level 1

3Q12 Level 2

-

-. 3

-. -.

1 11

10

26 3 -.

-. -. 22

25 19 -.

Recurring fair value measurement Financial assets at fair value through profit or loss: Derivatives instruments – non hedging Derivatives instruments - hedging Financial liabilities at fair value through profit or loss: Derivatives instruments – non hedging Derivatives instruments - hedging Available-for-sale-investments

Note 9 – Held for sale Odfjell announced 18 June that the transaction with Lindsay Goldberg to expand the joint venture with Lindsay Goldberg to include substantially all of the Odfjell's tank terminals business globally had been closed. As part of the transaction, Lindsay Goldberg has acquired a 49% interest in Odfjell Terminals AS ("OTAS"), the holding company for Odfjell's tank terminals activities. In exchange for a 49% share in OTAS, Lindsay Goldberg made a cash investment in OTAS, by way of a capital increase of USD 219.2 million. OTAS is now owned 51% by Odfjell and 49% by Lindsay Goldberg. Odfjell realized a book gain of USD 24.5 million related to the transaction.

Assets and liabilities classified as held for sale (USD 1 000): Assets

3Q13

2Q13

1Q13

FY 2012

Intangible assets Tank terminals Other non-current assets Non-current receivables Total non-current assets

-

2 187 145 488 6 862 3 085 157 623

2 785 181 996 8 558 3 854 197 193

2 837 184 356 8 694 3 746 199 632

Current receivables Bunkers and other inventories Cash and cash equivalents Total current assets Total assets held for sale

-

4 593 411 10 536 15 540 173 163

6 480 494 18 344 25 317 222 510

6 281 492 17 335 24 109 223 741

Liabilities Non-current liabilities Derivatives financial instruments Non-current interest bearing debt

-

6 183 2 583 72 544

7 039 5 060 93 219

6 887 4 381 94 072

13

Total non-current liabilities

-

81 310

105 318

105 340

Current portion of interest bearing debt Current liabilities Total current liabilities Total liabilities held for sale

-

5 882 83 432 89 314 170 624

9 079 14 589 23 668 128 986

10 543 13 018 23 561 128 900

Note 10 – Figures presented based on equity method Changes in IFRS 11 will have material effect in how Odfjell presents it joint arrangement. Odfjell has decided to wait until January 1st 2014 to implement equity method. Below is figures presented based on equity method.

STATEMENT OF INCOME (EQUITY METHOD) (USD mill) Gross revenue Net income from associates and joint ventures Voyage expenses Time-charter expenses Operating expenses Gross result

3Q13

2Q13

1Q13

FY2012

258. 30. (127) (37) (47) 79.

256. (1) (115) (39) (48) 53.

256. (4) (121) (43) (48) 40.

1 066 (10) (530) (173) (202) 150

General and administrative expenses Operating result before depreciation, amortisation and capital gain (loss) on non-current assets (EBITDA)

(18)

(27)

(25)

(99)

61.

26.

14.

50

Depreciation Capital gain (loss) on non-current assets Operating result (EBIT)

(23) (5) 32.

(23) 3. 6.

(22) (1) (9)

(98) (6) (54)

Interest income Interest expenses Other financial items Currency gains (losses) Net financial items

1. (8) (4) (11) (21)

(0) (7) 1. (2) (8)

0. (9) 4. 3. (1).

2 (40) (14) (2) (54)

Result before taxes

11.

(2)

(10)

(108)

Taxes Net result

(2) 9.

(0) (2)

(3) (13)

(3) (111)

14

STATEMENT OF FINANCIAL POSITION (EQUITY METHOD) (USD mill) Ships Newbuilding contracts Tank terminals Other non-current assets Investments in associates and joint ventures Loan to associates and joint ventures Non-current receivables Total non-current assets

3Q13

2Q13

1Q13

FY2012

1 256 40 55 454 42 1 847

1 267 40 55 337 65 68 1 833

1192 88 56 314 30 59 1 739

1 185 103 57 332 29 44 1 750

Current receivables Bunkers and other inventories Derivative financial instruments Available-for-sale investments Cash and cash equivalents Total current assets Net assets held for sale Total assets

124 30 3 9 108 275 2 122

125 25 1 9 202 362 3 2 197

129 17 6 14 83 249 94 2 084

107 36 7 17 122 288 95 2 133

199 630 829

199 633 832

199 626 7 832

80 824 7 914

Non-current liabilities Derivatives financial instruments Non-current interest bearing debt Total non-current liabilities

53 14 952 1 018

48 12 957 1 017

43 10 888 941

49 11 860 920

Current portion of interest bearing debt Derivative financial instruments Current liabilities Total current liabilities Total equity and liabilities

159 12 104 275 2 122

205 13 130 348 2 197

202 20 90 312 2 084

183 24 92 299 2 133

Paid in equity Other equity Non-controlling interests Total equity

Under the equity method the Group’s share of net result in associates and joint ventures for the year is included in net result. The Group’s interests in joint ventures and associates are carried on the balance sheet at an amount that reflects its share of the net assets of the company. The carrying value of investment in a joint venture or associate will never be negative, unless the Group has incurred or guaranteed obligations in respect of the company. Goodwill is included in the carrying amount of the investment and is not amortized. FINANCIAL RATIOS – EQUITY METHOD

Equity ratio

3Q13

2Q13

1Q13

FY2012

39.1%

37.8%

39.9%

42.9%

15

FLEET & TERMINAL OVERVIEW as per 12 November 2013 CHEMICAL TANKERS OWNED:

SHIP Bow Pioneer Bow Nangang Bow Dalian Bow Fuling Bow Lind Bow Elm Flumar Brasil Bow Saga¹ Bow Sirius¹ Bow Sea Bow Engineer Flumar Maceio Bow Summer Bow Spring ¹ Bow Star Bow Sun Bow Firda Bow Chain Bow Andes Bow Andino Bow Fortune Bow Master Bow Mate Bow Pilot Bow Sailor Bow Cecil Bow Flora Bow Balearia Bow Oceanic Bow Bracaria Bow Brasilia Bow Cardinal Bow Faith Bow Aratu Bow Querida Bow Cedar Bow Atlantic Bow Fagus Bow Clipper Bow Flower Bow Victor

YEAR BUILT 2013 2013 2012 2012 2011 2011 2010 2007 2006 2006 2006 2006 2005 2004 2004 2003 2003 2002 2000 2000 1999 1999 1999 1999 1999 1998 1998 1998 1997 1997 1997 1997 1997 1997 1996 1996 1995 1995 1995 1994 1986

DWT 75 000 9 156 9 156 9 156 46 047 46 098 51 188 40 085 49 539 49 511 30 086 19 975 49 592 39 942 39 832 39 842 37 427 37 518 16 020 16 121 37 395 6 046 6 001 6 008 6 008 37 369 37 369 5 846 17 460 5 846 5 800 37 446 37 479 13 843 10 106 37 455 17 460 37 375 37 221 37 221 33 000

STAINLESS CBM STEEL, CBM 86 000 10 523 10 523 10 523 10 523 10 523 10 523 48 698 48 698 55 452 52 126 52 126 52 155 52 155 52 107 52 107 36 274 36 274 21 713 21 713 52 128 52 128 52 127 52 127 52 127 52 127 52 127 52 127 40 645 40 645 40 621 40 621 17 120 17 120 17 622 17 622 40 619 40 619 7 018 7 018 7 004 7 004 7 005 7 005 7 011 7 011 40 515 33 236 40 515 33 236 6 075 6 075 19 616 19 616 6 071 6 071 6 067 6 067 41 487 34 208 41 487 34 208 15 834 15 834 11 181 11 181 41 488 41 488 19 588 19 588 41 608 34 329 41 596 34 328 41 492 34 213 34 500 21 975

NUMBER OF TANKS 30 14 14 14 29 29 14 40 40 40 28 22 40 40 40 40 47 47 22 30 47 14 14 14 14 47 47 20 24 20 20 52 52 29 18 52 24 52 52 52 31

2012 2012 2011 2011 2010 2010 2009 2009 2009 2009 2008 2008 2008 2008 2008 2007 2006 2006 2006 2006 2005 2005 2005 2005 2005 2004 2004 2004 2004 2004 2004 1999 1998 1996 1995 1995 1988 1994 2009 2009 2008 2006 2003 2000 85

45 352 45 352 33 552 13 086 21 290 19 998 33 625 33 694 19 905 19 997 19 702 33 641 33 619 33 641 33 707 19 999 19 805 19 807 11 340 11 340 19 806 40 005 30 058 19 999 14 271 12 705 14 312 19 997 9 901 9 888 19 707 9 887 9 554 37 499 37 272 37 221 24 728 8 143 19 860 19 865 19 865 16 000 16 533 16 630 2 187 203

15 591 21 846 11 088 11 089 22 735 10 893 10 442 41 488 41 606 41 492 32 347 9 346 22 144 22 129 21 712 18 397 18 397 17 350 2 448 439

15 591 21 846 11 088 11 089 22 735 10 893 10 442 34 209 34 257 34 213 19 662 9 346 22 144 22 129 21 712 10 056 10 056 17 350 1 990 029

22 22 18 16 20 20 16 16 20 20 26 16 16 16 16 20 22 22 20 20 18 40 28 22 20 22 20 22 20 20 36 24 24 52 52 52 25 17 16 16 16 35 35 22 2 353

YEAR BUILT 2 008 2 008

DWT 10 282 10 282

CBM 8 922 8 922

TYPE LPG/Ethylene LPG/Ethylene

NUMBER OF TANKS 2 2

DELIVERY

DWT

OWNER

COMMENT

TIME CHARTERED/POOL:

COMMERCIAL MANAGEMENT:

UACC Messila UACC Masafi Chemroad Hope SG Pegasus Southern Koala Stream Luna Bow Tone Bow Hector Southern Ibis Southern Jaguar Stream Mia Bow Sagami Bow Harmony Bow Kiso Bow Heron Celsius Mayfair Bow Fuji Bow Plata Crystal Topaz³ Crystal Diamond³ Moyra Bow Sky² Bow Architect Celcius Monaco Chembulk Sydney Golden Top Chembulk Wellington Bow Santos² Bow Asia² Bow Singapore² Bow Americas Crystal Amaranto³ Crystal Skye³ Bow Jubail² Bow Mekka² Bow Riyad² Bow Eagle Crystal Pearl³ JBU Sapphire³ JBU Opal³ JBU Onyx³ Northern Wolverine Northern Lynx Crystal Atlantica Number of ships: ¹ Vessel beneficially owned through financial lease. ² Vessel on bare-boat charter. ³ Vessel on variable time charter/pool.

LPG/ETHYLENE CARRIERS OWNED:

SHIP Bow Gallant Bow Guardian

ON ORDER:

YARD

52 256 52 565 37 161 14 523 20 008 22 161 37 974 37 384 22 158 22 157 22 094 38 000 38 052 37 974 37 365 21 714 22 140 22 143 11 870 11 870 22 838 52 126 36 290 21 851 16 571

13.388

37 161 14 523 20 008 22 161 37 974 37 384 22 158 22 157 22 094 38 000 38 052 37 974 37 365 21 714 22 140 22 143 11 870 11 870 22 838 52 126 36 290 21 851 16 571

13.388

CHEMICAL TANKERS

Hyundai Mipo Dockyard., Ltd " " "

LPG/ETHYLENE CARRIERS

YARD Nantong Sinopacific Offshore & Engineering Co., Ltd " " " Number of newbuildings:

TANK TERMINALS Odfjell Terminals (Rotterdam) BV Odfjell Terminals (Houston) Inc Odfjell Terminals (Jiangyin) Co Ltd Odfjell Terminals (Dalian) Ltd Odfjell Terminals (Korea) Co Ltd Oiltanking Odfjell Terminal Singapore Ltd Oiltanking Odfjell Terminal & Co. LLC Noord Natie Odfjell Terminals Exir Chemical Terminals PJSCO Vopak Terminal Ningbo Ltd Total terminals

LOCATION Rotterdam, NL Houston, USA Jiangyin, China Dalian, China Onsan, Korea Singapore Sohar, Oman Antwerp, Belgium BIK, Iran Ningbo, China 10 terminals

PROJECTS AND EXPANSIONS Odfjell Terminals (Charleston) LLC Odfjell Nangang Terminals (Tianjin) Co.,Ltd Noord Natie Odfjell Terminals Odfjell Terminals (Houston) Inc Oiltanking Odfjell Terminal Singapore Ltd Odfjell Terminals Quanzhou (Fujian) Total expansion terminals

LOCATION Charleston, USA Tianjin, China Antwerp, Belgium Houston, USA Singapore Quanzhou, China 3 new terminals

TANK TERMINALS PARTLY OWNED BY RELATED PARTIES*) Depositos Quimicos Mineros S.A. Granel Quimica Ltda Granel Quimica Ltda Granel Quimica Ltda Granel Quimica Ltda Granel Quimica Ltda Granel Quimica Ltda Odfjell Terminals Tagsa S.A. Odfjell Terminals Tagsa S.A. Terquim S.A. Terquim S.A. IMTT-Quebec Total tank terminals partly owned by related parties OWNED BY RELATED PARTIES*) Granel Quimica Ltda Granel Quimica Ltda Granel Quimica Ltda Terquim S.A. Granel Quimica Ltda Total expansion tank terminals partly owned by related parties

OWNER SHIP**) 51% 51% 28.05 % 25.5 % 25.5 % 25.5 % 15.17 % 12.75% 35 % 12.5%

2014 2014 2014 2014

46 000 46 000 46 000 46 000

Odfjell Odfjell Odfjell Odfjell

DELIVERY 2015 2015 2016 2016 8

CBM 17 000 17 000 17 000 17 000

OWNER Odfjell Odfjell Odfjell Odfjell

COMMENT Optional 4

CBM STEEL, CBM 1 636 100 32 550 331 334 82 033 99 800 30 000 119 750 18 350 313 710 15 860 365 051 13 520 1 294 780 296 780 50 800 22 000 1 000 71 050 8 000 4 550 355 252 113

TANKS

CBM 79 491 145 000 50 000 30 800 12 000 184 000 501 291

STEEL, CBM

COMPLETION

LOCATION Callao, Peru Santos I, Brazil Rio Grande, Brazil Sao Luis I, Brazil Ladario, Brazil Triunfo, Brazil Teresina, Brazil Buenos Aires, Argentina Campana, Argentina San Antonio, Chile Mejillones, Chile Quebec, Canada 12 terminals

CBM 52 980 97 720 61 150 75 710 8 060 12 030 7 640 38 826 68 580 32 840 16 870 293 130 765 536

STEEL, CBM

LOCATION Aracruz, Brazil Santos II, Brazil Sao Luis II, Brazil Mejillones, Chile Palmas, Brazil 4 new terminals

CBM 30 000 52 000 52 750 50 000 10 000 194 750

-

5 315 891

292 713

Grand total (incl. related tank terminals partly owned by related parties 22 existing terminals *) Tank terminals and projects partly owned by Odfjell family. **) Odfjell SE's indirect ownership share

OWNER SHIP**) 51% 24.99% 12.5% 51% 25.5 % 25.5%

7 000 30 800 37 800

1 600 19 880 2 900 530 10 190 5 500 40 600

281 100 22 51 85 79 66 230 18 39 971

Q4 2013 Q3 2014 Q4 2013/Q1 2014 Q2 2014 Q1 2015 Q1 2016

TANKS 43 99 32 35 6 2 6 56 102 25 7 53 466 COMPLETION ready Q3 2015 ready Q4 2015 ready Q3 2014 ready Q3 2015 ready Q2 2014

ODFJELL SE Conrads Mohrs veg 29, P.O. Box 6101 Postterminalen 5892 Bergen, Norway Tel: +47 5527 0000 Fax: +47 5528 4741 E-mail: [email protected] Org. no: 930 192 503 www.odfjell.com