Interim Report 1 January - 30 June 2008

Broström AB (publ) – Reg. no. 556005-1467

• Volatile and weak freight market during most of the second quarter 2008
- European business experienced a weak start to the second quarter, but ended with an improvement although primarily for large tonnage.
- Atlantic business basically followed the same market pattern as the European business.
- For large tonnage in the Asian business, the freight market was relatively weak for almost the entire second quarter.
- Small tonnage in the Asian business had continued stable development.

• Profit after net financial items for the second quarter SEK 73 m (247). This includes SEK 66 m (107) of capital gains related to sales of vessels and dissolution of negative goodwill (only in 2007).
- Net sales were SEK 912 m (915).
- Profit after tax was SEK 71 m (236).
- Earnings per share totalled SEK 1.12 (3.60).

• Profit after net financial items for the first six months SEK 75 m (419). This includes SEK 66 m (109) of capital gains related to sales of vessels and dissolution of negative goodwill (only in 2007).
- Net sales were SEK 1,784 m (1,841).
- Profit after tax was SEK 77 m (386).
- Earnings per share were SEK 1.21 (5.86).
- Return on capital employed was 4.9% (15.5).

• Cash flow and disposable liquidity
- Cash flow per share was SEK 3.24 (8.75).
- Disposable liquidity amounted to SEK 703 m (993 on 31 December 2007).
- The dividend payout was SEK 191 m.

• Change in transport capacity during the second quarter
- The BRO ERIK (37,000 dwt) was delivered to Broström's partner Furetank in May 2008.
- The CPO FRANCE and the CPO SWEDEN (both 37,000 dwt) were delivered to Broström's partner Claus-Peter Offen. The vessels are now trading in Broström’s European sector.
- The EXCELLO (19,500 dwt) was delivered to Broström's partner Donsötank and is now operating in Broström’s European sector.

• Outlook for 2008
The market improvement – primarily for large tonnage – that took place at the end of the second quarter continued into the third quarter of 2008. Broström's strategic position for 2008 and onward has been strengthened through acquisitions and investments made in recent years. The trend in transport for the years immediately ahead in Broström's market segment is currently difficult to judge. However, in the coming years, a large volume of new tonnage will be added to the market. The high price of oil has brought about a greater urgency to reduce dependency on oil and growth forecasts for oil consumption have been adjusted downward. Broström believes that major fluctuations will take place from period to period in both transport volume and freight rates.