Q3 2010 REPORT Q3

SAGA TANKERS Q3 2010 REPORT > PAGE 2

CONTENTS FINANCIAL INFORMATION Highlights > Consolidated condensed statement of comprehensive income > Consolidated condensed statement of financial position > Consolidated cash flow statement > Consolidated statement of changes in equity > Notes to the financial statements >

SAGA TANKERS Q3 2010 REPORT > PAGE 3

■ SUCCESSFUL DRYDOCKING OF ALL 4 VESSELS

■ CHALLENGING MARKET FOR VLCCS

■ EBITDA OF USD (0.3) MILLION

■ NET PROFIT OF USD (5.2) MILLION

KEY FIGURES USD 1000 Q3 2010

(unaudited)

Gross freight revenue 11 421

Operating (TC) revenue 4 805

Operating profit before depreciation (EBITDA) -328

Operating profit (EBIT) -3 877

Net profit/-loss -5 167

Basic and diluted earnings per share (USD) -0,07

Cash and cash equivalents 27 442

RESULTS Saga Tankers ASA reports a net loss for the third quarter of 2010 of USD (5.2) million.

Gross freight revenues for the third quarter were USD 11.4 million.

Operating revenues for the third quarter were USD 4.8 million.

EBITDA for the third quarter was USD (0.3) million.

Net financial items for the third quarter were USD (1.3) million.

Earnings per share (EPS) for the third quarter were USD (0.07).

The average number of shares in the quarter was 78,888,559 shares. As per the end of the period, the outstanding number of shares was 78,888,559.

All of the Company’s vessels completed their special surveys (drydocking) during the third quarter. All special surveys were completed within budget. The Company expects limited CAPEX on the vessels going forward. The

Company had a total of 75 off-hire days in connection with the special surveys.

The Company’s vessels had a total of 293 trading days out of 368 possible in the third quarter. The Company’s spot trading vessels had a total of 231 trading days out of 276 days in the quarter. The number of trading days is calculated as the total number of days in the quarter less the number of days used for the special surveys.

Average TCE obtained on all four vessels was USD 16,395 per day in the quarter.

Average TCE for the three spot trading vessels was USD 11,969 per day in the quarter.

Average OPEX per vessel was USD 12,316 per day and reflects preparations for the special surveys conducted in the quarter.

The Company’s condensed financial statements for the third quarter of 2010 are enclosed.

HIGHLIGHTS

SAGA TANKERS Q3 2010 REPORT > PAGE 4

FINANCING In total, USD 136.85 million of the Term Loan Facility had been drawn for the acquisition of the four vessels in the second quarter. At third quarter end, the Company paid the first principal repayment under the Term Loan Facility of USD 4.1 million. The total amount of outstanding debt under the Term Loan Facility at quarter end was USD 132.7 million. MAIN EVENTS DURING THE QUARTER The freight market for large crude carriers experienced a challenging third quarter. With all vessels conducting special surveys, the Company had hoped to reduce its exposure to the poor market. However, despite waiting for improved market conditions, the poor world scale rates sustained throughout the whole quarter. VESSEL OPERATIONS All vessels have operated without any technical issues throughout the quarter.

Drydocking summary

Saga Chelsea entered drydock in China on 27 July. The vessel was off hire for 25 days in the quarter, and the total cost for the special survey was approximately USD 2.0 million.

Saga Unity entered the drydock in Dubai on 4 August. The vessel was off hire for 13 days in the quarter, and the total cost for the special survey was approximately USD 1.6 million.

Saga Agnes, who is on time charter to Bluelight, entered drydock at Keppel Shipyard on 17 August. The vessel was off hire for 30 days in the quarter, and the total cost for the special survey was approximately USD 1.9 million.

Songa Julie entered the drydock at Keppel Shipyard on 1 September. The vessel was off hire for 7 days in the quarter, and the total cost for the special survey was approximately USD 1.2 million.

MARKET The weak tanker market continued throughout the third quarter. The reasons seem to be a mix of factors

including weak US Oil import. The forward curve for oil has not encouraged any substantial floating storage of crude oil. As for the future, the Company believes the market for VLCC will recover. Large crude tankers will remain the most cost-efficient way to transport oil and the long term positive fundamentals are still intact. STATEMENT REGARDING FORWARD-LOOKING STATEMENTS Matters discussed in this report may constitute forward-looking statements. The forward-looking statements in this report are based upon various assumptions, many of which are based upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult to predict and beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.

Oslo, 5. November 2010

The Board of Directors

Arne Blystad Einar J. Greve Brita Eilertsen Chairman Board Member Board Member

Jon Chr. Syvertsen CEO

SAGA TANKERS Q3 2010 REPORT > PAGE 6

CONSOLIDATED CONDENSED STATEMENT OF COMPREHENSIVE INCOME

USD 1000 Q3 2010

(unaudited) YTD 2010

(unaudited)

Gross freight revenues 11 421 24 999

Voyage related expenses 6 616 12 491

Operating TC revenues 4 805 12 509

Operating expenses vessels 4 302 6 436

General administrative expenses 831 1 617

Depreciation (Note 2) 3 549 5 014

Operating expenses 8 682 13 067

Operating profit -3 877 -558

Interest income 21 67

Interest expense 1 177 1 823

Other financial items -134 -67

Net financial items -1 290 -1 823

Profit/-loss before tax -5 167 -2 382

Taxes

Net profit/-loss -5 167 -2 382

Other comprehensive income - -

Total comprehensive income -5 167 -2 382

Basic and diluted earnings per share (USD) -0,07 -0,03

Average number of shares in the period 78 888 559 76 175 186

Number of shares outstanding at period end 78 888 559 78 888 559

SAGA TANKERS Q3 2010 REPORT > PAGE 7

CONSOLIDATED CONDENSED STATEMENT OF FINANCIAL POSITION

USD 1000 Q3 2010

(unaudited)

ASSETS

Non-current assets

Vessels and other assets (Note 2) 255 652

Total non-current assets 255 652

Current assets

Other Current assets 4 252

Cash and cash equivalents 27 442

Total Current assets 31 694

TOTAL ASSETS 287 345

EQUITY AND LIABILITIES

Equity

Share capital 13 301

Share premium 141 327

Retained earnings -2 382

Total equity 152 246

Non-current liabilities

Long-term interest-bearing debt 114 391

Net pension liabilities 117

Total non-current liabilities 114 509

Current liabilities

Current portion of long-term debt 16 422

Other current liabilities and accruals 4 169

Total current liabilities 20 591

TOTAL EQUITY AND LIABILITIES 287 345

SAGA TANKERS Q3 2010 REPORT > PAGE 8

CONSOLIDATED CASH FLOW STATEMENT

USD 1000 YTD Q3 2010

(unaudited)

Profit before tax -2 382

Tax -

Depreciation 5 014

Increase/decrease Inventories -2 853

Increase/decrease receivables and prepayments -

Increase/decrease payables and accruals 4 039

Pension liability 117

Increase/decrease other provisions 829

Net cashflow from operating activities 4 764

Investments in tangible fixed assets -224 665

Net cash flow used in investing activities -224 665

Proceeds from long term borrowings 136 850

Repayments of long term borrowings -4 106

Proceeds from issuance of shares 114 766

Repayments of equity -167

Net Cash flow from financing activities 247 343

Effects of exchange rate changes on cash -

Net change in cash and cash equivalents 27 442

Cash and cash equivalents

at beginning of incorporation -

Cash and cash equivalents

at end of period 27 442

SAGA TANKERS Q3 2010 REPORT > PAGE 9

USD 1000 (unaudited) Issued capital Share

premium Retained earnings Total

Day of incorporation (24 March 2010) 167 1 168

Capital reduction (6 May 2010) -167 -167

Share issue (6 May 2010) 9 965 104 632 114 597

Share issue (10 May & 15 June) 3 336 36 694 40 030

Net profit/-loss -2 382 -2 382

Other comprehensive income - -

Total comprehensive income -2 382 -2 382

Equity per ending balance 30 September 2010 13 301 141 327 -2 382 152 246

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

SAGA TANKERS Q3 2010 REPORT > PAGE 10

NOTE 1 – BASIS FOR PREPARATION

The Company's condensed interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as approved by the EU and requirements in the Norwegian Securities Trading Act. The accounting policies adopted in the preparation of the condensed interim financial statements are consistent with those presented in section 8 of the Company's IPO prospectus. The prospectus can be found on the Company's webpage (www.sagatankers.no). NOTE 2 – VESSELS AND OTHER FIXED ASSETS

USD 1000 (unaudited) Vessels Other fixed

assets Total

Acquisition cost, opening balance (24 March 2010) - - -

Acquisition of vessels 260 577 88 260 665

Acquisition cost, ending balance 30 September 2010 260 577 88 260 665

Accumulated depreciation, opening balance (24 March 2010 - -

Depreciation 5 008 6 5 014

Accumulated depreciation, ending balance 30 September 2010 5 008 6 5 014

Net carrying amount, ending balance 30 September 2010 255 569 82 255 652

NOTE 3 – OPERATING SEGMENTS

The Company operates one type of vessels, VLCCs. For management purposes, the Company's business is not organized into separate operating segments and hence only has one reportable operating segment which is in line with the consolidated figures presented in this report. Group financing is also monitored on a Group basis. NOTE 4 – 20 LARGEST INVESTORS

NAME 28.09.2010

1 BLYSTAD SHIPHOLDING 24,96 %

2 BANK OF NEW YORK MEL BNY GCM CLIENT ACCOU 6,34 %

3 FERD AS INVEST 6,25 %

4 JPMORGAN CLEARING CO A/C CLEARING ACCOUNT 5,36 %

5 HOLBERG NORGE V/HOLBERG FONDSFORVA 3,95 %

6 EUROCLEAR BANK S.A./ 25% CLIENTS 2,89 %

7 SKANDINAVISKA ENSKIL A/C FINNISH RESIDENT 2,49 %

8 GOLDMAN SACHS & CO - SECURITY CLIENT SEGR 2,36 %

9 KOMMUNAL LANDSPENSJO 2,14 %

10 JP MORGAN CLEARING C A/C CUSTOMER SAFE KE 2,11 %

11 SUNDT AS 1,79 %

12 DELPHI NORDEN JPMORGAN EUROPE LTD, 1,61 %

13 CANICA AS 1,53 %

14 STATOIL PENSJON C/O JP MORGAN CHASE 1,49 %

15 CLEARSTREAM BANKING CID DEPT, FRANKFURT 1,45 %

16 SHB STOCKHOLM CLIENT C/O HANDELSBANKEN AS 1,37 %

17 UBS AG, LONDON BRANC S/A IPB SEGREGATED C 1,34 %

18 BANK OF NEW YORK MEL TREATY ACCOUNT UNITE 1,32 %

19 TEIGEN OLE KETIL 1,27 %

20 TEIGEN FRODE 1,26 %

TOTAL 73,28 %

NOTES

SAGA TANKERS Q3 2010 REPORT > PAGE 11

NOTE 5 – EVENTS AFTER QUARTER END

The Company held an Extraordinary General Meeting on 21 October where the General Meeting approved to reduce the share premium fund and to transfer the reduced amount to Other Equity. The Company increases its flexibility of such a share premium fund reduction by increasing the Company’s ability to distribute dividend to its shareholders in the future. The share premium was subsequently reduced with NOK 838.039.937 from NOK 838.039.937 to NOK 0, - (zero), or with USD 141.327 from USD 141.327 to USD 0,- (zero). The reduced amount was transferred to Other Equity.

SAGA TANKERS Q3 2010 REPORT > PAGE 12

SAGA TANKERS ASA +47 23 11 82 70 P.O. Box 1468 Vika Norway

INVESTOR RELATIONS Phone: +47 23 11 82 74 e-mail: fp@sagatankers.no

www.sagatankers.com