1

First Quarter 2012 Results Conference call and webcast - 9 May 2012

2

AGENDA

• Highlights• Financials 1Q 2012• Financials per segment• Operational review• Market update and prospects• Summary• Q&A Session

3

HIGHLIGHTS

• EBITDA first quarter 2012 of USD 41 million reflects improved earnings in the chemical tanker segment

• Time charter results up 8% compared with fourth quarter last year

• The bunker cost increased further and remained high

• Tank terminal earnings remain steady

• Completed Bond issue of NOK 600 million

4

AGENDA

• Highlights• Financials 1Q 2012• Financials per segment• Operational review• Market update and prospects• Summary• Q&A Session

5

FIRST QUARTER 2012

USD mill 1Q12 4Q11

Gross revenue 333 322

Voyage expenses (148) (150)

TC expenses (44) (42)

Operating expenses (70) (69)

General and administrative expenses (30) (31)

Operating result before depr. (EBITDA) 41 31

Depreciation (32) (32)

Capital gain/loss on fixed assets 1 (0)

Operating result (EBIT) 11 (1)

Net finance (12) (6)

Taxes (3) (1)

Net result (4) (8)

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QUARTERLY GROSS REVENUE from continued operation (previous quarters restated)

USD mill

260 256

333

263 268255

309

271

322

0

50

100

150

200

250

300

350

2010 2011 2012

Annual figures

1,048 1,154 1,332

7

EBITDA

0

50

100

150

200

250

300

350

20022003

20042005

20062007

20082009

20102011

2012

US

D m

ill

Tank Terminals Tank Containers Chemical Tankers

* All figures reflect actual ownership. 2012 figures are annulised.

8

-6

1211

-13

8

-10

2

-7

-1

-15

-10

-5

0

5

10

15

2010 2011 2012

Annual figures

(36) 21 44

QUARTERLY OPERATING RESULT (EBIT) from continued operation (previous quarters restated)

USD mill

9

-7 -8 -10 -11-9 -10 -10 -11 -12

1

-7

2

11

2 2

-2

5

0

-20

-15

-10

-5

0

5

10

15

Other financial/currency

Net interest

Annual figures

(30) (35) (48)

2010 2011 2012

QUARTERLY NET FINANCE from continued operation (previous quarters restated)

USD mill

10

-4

11

-4

-64

5

-11

261

0

-8

-100

-50

0

50

100

150

200

250

300

2010 2011 2012

Annual figures

(79) 269 (16)

QUARTERLY NET RESULT USD mill

11

0

200

400

600

800

1,000

1,200

2012 2013 2014 2015 2016

Ending balance Repayment

DEBT PORTFOLIOPer 31.03.12

12

DEBT REPAYMENTSPer 31.03.12

0

50

100

150

200

250

300

2012 2013 2014 2015 2016

US

D m

ill

Secured loans Balloon Leasing NOK Bond

13

HEDGING – DEBTPer 31.03.12

0

200

400

600

800

1,000

1,200

1,400

2012 2013 2014 2015 2016

US

D M

ill

Liquidity Swapped to Fixed Rate Floating Rate

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LIABILITIES & EQUITY

ASSETS

Ships & newbuildings

Tank terminals

Other fixed and current assets

Other liabilities

Interest bearing debt

Equity

BALANCE SHEET Per 31.03.12

Minority interest

Liquid assets

15

CAPITAL EXPENSESPer 31.03.11 – Odfjell share

In USD mill 2012 2013 2014 2015 2016

Daewoo, 1 x 75 000 DWT 13 13

Chuandong, 3 x 9 000 DWT 9

Docking 27 36 36 36 36

Terminals 105 84 30 68 47

Total 154 133 66 104 83

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AGENDA

• Highlights• Financials Q4 2011• Financials per segment• Operational review• Market Update / Prospects• Summary• Q&A Session

17

GROSS REVENUE, EBITDA AND ASSETS PER SEGMENT

1Q 2012

294

25 1,637

41

16 872

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Gross Revenue EBITDA Assets

Chemical Tankers Tank Terminals

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RESULTS PER SEGMENT

1Q12 4Q11

USD millChemical tankers

Tank terminals

Chemical tankers

Tank terminals

Gross revenue 294 41 283 40

EBITDA 25 16 15 16

EBIT 3 8 (9) 8

Net result (8) 4 (14) 6

EBITDA Tank Terminals by 1Q12 4Q11

geographical segment

Europe 1 1

North America 4 4

Asia 8 7

Middle East 4 4

Net result 16 16

19

ODFIX

0

20

40

60

80

100

120

140

160

180

Ind

ex

19

90

= 1

00

20

0

100

200

300

400

500

600

700

800

USD/mt

BUNKERSPlatts 3.5% FOB Rotterdam

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NET BUNKER COSTPer 31.03.12

78.5 89.390.4 94.5 102.5

(6.5) (11.2) (15.5) (15.7) (20.3)(5.9) (3.0)

(3.2) (3.0) (2.1)

66.075.1 71.8 75.9

80.1

(30)(20)(10)

-102030405060708090

100110

1Q11 2Q11 3Q11 4Q11 1Q12

US

D m

ill.

Bunker purchase Bunker clauses Bunker hedging Net bunker cost

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AGENDA

• Highlights• Financials Q4 2011• Financials per segment• Operational review• Market Update / Prospects• Summary• Q&A Session

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FLEET DEVELOPMENT 2012

Fleet additions DWT Built Tanks Transaction

January 2012 Bow Andes 16 020 2000 Purchase

January 2012 Southern Ibis 19 905 2009 Stainless 2 year TC

Fleet reductions DWT Built Tanks Transaction

June 2012 Bow Fertility 45 507 1987 Coated Recycling

May 2012 Bow Pride 45 655 1987 Coated Recycling

May 2012 Bow Peace 45 655 1987 Coated Recycling

February 2012

Bow Pacifico 18 657 1982 Stainless Sale

January 2012 Bow Prosper 45 655 1987 Coated Recycling

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TANK TERMINAL DEVELOPMENT 2012

• Oman (OOTO) – 27,300 cbm is expected to be commercially operational by 3Q 2012

• US Charleston (OTC) – 80,000 cbm to be added in 2013, progressing according schedule

• Odfjell/LG close to conclusion on the 25% equity share in Noord Natie Terminals in Antwerpen

• Rotterdam has a number of tanks out for maintenance and regulatory upgrading

• Evaluating various existing terminals and green field projects

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TANK TERMINAL CAPACITY

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

OTR - 51%

OTH - 51%

OTK - 50%

OOTS - 50%

OTD - 50%

OTJ - 55%

OOTO - 29.75%

Exir - 35%

Ningbo - 12.5%

Charleston - 51%

Tianjin - 49%

Associated

Cub

ic M

etre

s`00

0

Current capacity Ongoing expansions

Current capacity 4.987.498

Ongoing expansions 391.400

Total capacity in CBM

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AGENDA

• Highlights• Financials Q4 2011• Financials per segment• Operational review• Market Update / Prospects• Summary• Q&A Session

27

MARKET UPDATE – CHEMICAL TANKERS

• Reasonably high activity levels and firm demand during 1Q

• Contract rate renewals up by 10% to 40%

• Earnings on time charter basis increased by about 8%

• Rates for US and European trade were firm, whilst Asian exports came under pressure

• Bunker prices increased further during the quarter, together with piracy, this remain major concerns

• In second quarter so far, the activity has been slower with less volume in many areas

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Source: Odfjell

Core Chemical Deep-sea Fleet 2003-2014 Orderbook and estimated demolition per May 2nd 2012

* Outphasing 30 years (Europe built) and 25 years (Asian built)

-1,200

-800

-400

0

400

800

1,200

1,600

2,000

2,400

03 04 05 06 07 08 09 10 11 12 13 14

'000 Dwt

-7.5%

-5.0%

-2.5%

0.0%

2.5%

5.0%

7.5%

10.0%

12.5%

15.0%

Deliveries OrderbookActually demolished Estim. vessel outphasingNet Fleet Growth (%)

% of year-start fleet

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MARKET UPDATE - TANK TERMINALS

• Terminals remain at high utilization rates

• Strong momentum in the US

• Capacity build-up in Korea

• Oil industry continued to be slow

• Iran conflict keeps oil market in tension

Expect stable market going forward

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PROSPECTS

• The global economic growth outlook has deteriorated

• Hardly any contracting of new sophisticated stainless steel vessels

• Activity levels are softening, indicating a possible weaker spot market for chemical freight in second quarter

• Tank terminal results expected to remain in line with the first quarter

• Expecting somewhat weaker operating results in second quarter

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AGENDA

• Highlights• Financials Q4 2011• Financials per segment• Operational review• Market Update / Prospects• Summary• Q&A Session

32

SUMMARY

• Stronger 1Q12, EBITDA USD 41 million

• 2Q12 chemical tanker activity slower with lower volumes

• Bunker cost still a main challenge

• Robust balance sheet and solid liquidity position

• Stable results Tank Terminals

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AGENDA

• Highlights• Financials Q4 2011• Financials per segment• Operational review• Market Update / Prospects• Summary• Q&A Session

34

Thank you!