Interim Report 1 January - 30 September 2007

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

• Weak spot market during the third quarter
- European and Atlantic traffic was adversely affected by a very weak spot market resulting from lower available volumes in the market primarily during the latter part of the third quarter.
- Asian traffic was also affected by the weaker spot market, however, capacity utilisation of the fleet was high and enabled continued stable and favourable development during the third quarter.
- Large number of dockings and vessel upgrades carried out during the third quarter.

• Profit after net financial items for Q3 SEK 41 m (163). This includes SEK 12 m (15) of capital gains related to sales of vessels and operations.
- Net sales were SEK 819 m (850).
- Profit after tax was SEK 45 m (148).
- Earnings per share were SEK 0.69 (2.26).

• Profit after net financial items for the first nine months SEK 460 m (538). This includes SEK 120 m (113) of capital gains related to sales of vessels and operations and dissolution of negative goodwill.
- Net sales were SEK 2,660 m (2,584, of which 96 pertains to sold subsidiaries).
- Profit after tax was SEK 431 m (465).
- Earnings per share were SEK 6.55 (7.07).
- Return on capital employed was 12.1% (13.2).

• Cash flow and disposable liquidity for the first nine months
- Cash flow per share was SEK 10.82 (9.36).
- Disposable liquidity amounted to SEK 1,156 m (1,110 on 31 December 2006).

• Changes in the fleet
- The BRO GOLIATH (formerly the MARELD) and the BRO GOTHIA (formerly the MARISP), each of 7,100 dwt, were delivered at the end of August and beginning of September, respectively. Broström has a 50% stake in each of these vessels.
- A call option was declared on the HUNTESTERN (37,000 dwt), with delivery expected in December 2007.
- The GAN-OCEAN (17,000 dwt) was delivered at the end of July 2007. The vessel is the first in a series of six vessels included in the partnership with Dünya.

• Outlook
The spot market so far in the fourth quarter of 2007 in Broström’s market segment is at a weak level. Investments and acquisitions carried out in 2006 and 2007 are having an increasingly positive impact on earnings and have also contributed to a further strengthening of Broström's strategic position ahead of 2008 and onwards. The assessment of the trend in the spot market is that it will continue to be characterised by major volatility from period to period. The underlying longer trend for Broström's market segment is judged to be positive.