Interim Report 1 January– 31 March 2008

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

• Volatile and weak freight market during first quarter of 2008
- Unseasonably mild weather in the major consumer areas in Europe and North America led to a lower
consumption of fuel oil and a weaker freight market in the European and trans-Atlantic sectors.
- Due to the mild weather, the normally stronger winter market in the Baltic Sea did not occur.
- Low export volumes of Russian oil products.
- Asian business in small and intermediate tonnage had stable development during the period, whilst the medium range segment was characterised by high volatility and lower freight rates.
- Earnings adversely affected by the high price of bunker oil and the weak US dollar.
- Overall favourable renewal of contracts of affreightment during the first quarter.

• Profit after net financial items for the first quarter SEK 2 m (172)
- Net sales were SEK 872 m (926).
- Profit after tax was SEK 6 m (151).
- Earnings per share totalled SEK 0.09 (2.26).
- Return on capital employed was 2.6% (13.7).

• Cash flow and disposable liquidity
- Cash flow per share was SEK 0.52 (3.72).
- Disposable liquidity amounted to SEK 747 m (993 on 31 December 2007).

• Change in transport capacity
- The BRO ANNA and the BRO AGNES, both 17,000 dwt, were delivered during the first quarter and are now operating in the European sector.
- The GAN-SABRE, 51,000 dwt, was delivered in January and is operating in the Asian sector.
- An agreement was reached on the sale of the BRO ERIK (37,000 dwt) to a partner. Delivery will take
place in May 2008. The sale will give rise to a gain of SEK 65 m and a cash contribution of SEK 140 m, which will be recognised in the second quarter report.

• Outlook for 2008
The start of the second quarter of 2008 has been characterised by a continued weak freight market in Broström’s market segments, even though some improvement has been noted. Broström's strategic position for 2008 and onward has been further strengthened through acquisitions and investments made in recent years. The underlying long-term trend for Broström’s market segments is judged to be positive, even though major fluctuations may occur from time to time.