Interim Report for Concordia Maritime AB (publ) 1 January -31 March 2005

* Net sales: SEK 70.6 (139.0) million * Profit after tax SEK 27.0 (44.3) million, including sale of ships of SEK 47.4 (0) million and exchange rate differences of SEK -26.0 (0) million * Profit per share after tax: SEK 0.57 (0.93) * New forecast for 2005: SEK 70 million including exchange rate differences of SEK -26 million (previous forecast: SEK 100 million) corresponding to SEK 1.47 per share (previous forecast: SEK 2.10 per share) * Equity: SEK 1,750 million corresponding to SEK 36.67 per share, an increase of SEK 2.80 per share since 31-12-2004.

SUMMARY OF BUSINESS ACTIVITIES, FIRST QUARTER, 2005 SALES AND RESULT Sales amounted to SEK 70.6 (139.0) million. The result after financial items was SEK 27.9 (44.3) million, which included a profit of SEK 47.4 (0) million on the sale of ships. The result after tax was SEK 27.0 (44.3) million, which corresponds to a result per share after tax of SEK 0.57 (0.93). Sales and result per operating segment Sales Result Large tanker /VLCC 48.7 33.4 Including sales of ships - 47.4 Product tanker 21.9 -1.2 Others - -5.2 Tanker market VLCC In the first quarter of 2005, freights were substantially lower than in the fourth quarter of 2004. However, the market is still strong in comparison with long periods in the last 20-30 years and the average freight rate for a modern VLCC was well over USD 60,000 per day. During the period, oil prices rose from around USD 41 to USD 54 per barrel. This does not seem to have affected demand and continuing high imports to countries such as China are exerting upward pressure on the freight market. Product market The market rates for transportation of refined petroleum products did not reach the same levels as those in the corresponding period, last year. However, as in the case of large tonnage, the market is strong historically speaking. The US imported larger volumes than usual from Europe in order to meet domestic demand. The general view in the market is that the continuing imbalance between supply and demand in different regions will also continue to contribute to a relatively strong market. Shipbuilding market In the first quarter of 2005, there was a continued level of activity for all types of tonnage. Newbuilding prices of vessels for delivery around 2008-2009 continue to rise. The second-hand market, primarily for modern vessels, also continues to be very strong. VLCC The remaining VLCC in the so-called Concordia Class, the Stena Congress, was delivered to the buyer on 7 January. The capital gain on the sale, SEK 54.2 million, is included in the result for the period. V-MAX In conjunction with the sale of the Stena Vision and Stena Victory to Arlington Tankers in November, 2004, Concordia Maritime entered into an agreement with Arlington Tankers to time-charter the V-MAX tankers for five years at a fixed rate with an option on three 1-year extensions. The vessels are time-chartered to the US oil company Sunoco until mid-2007. The revenue from this contract covers the charter costs paid to Arlington Tankers after the sale of the vessels. Concordia Maritime is thus exposed to the open market for about 2.5 years, from mid-2007 to the end of 2009. Additional costs relating to the sale to Arlington Tankers have reduced the profit on sales of ships for the period by SEK 6.8 million. Undertakings in conjunction with ship management In conjunction with the sale to Arlington Tankers, Concordia undertook to pay for the vessels’ daily operating costs if they exceeded a pre-determined level. In the annual accounts, provision was made for the estimated cost of these undertakings. In the first quarter of 2005, actual costs exceeded provisions made by SEK 1.2 million. This amount has been charged to the result for the period. The estimated costs for the rest of 2005 amount to SEK 9.2 million and are reported under accrued expenses. The estimated costs in 2006-2009 amount to SEK 44.5 million and are reported under the Provisions in the balance sheet. SHIPS UNDER CONSTRUCTION P-MAX The newbuilding project for the six P-MAX product tankers ordered in 2003 at the Brodosplit yard in Croatia is proceeding according to plan. Panamax product tankers Construction of the two Panamax product tankers with ice class 1A, which were ordered in August, 2004, in a 50/50 joint venture with Finnish Fortum, now called Neste Oil, is expected to begin in August and December, 2005, respectively. P-MAX Size, dwt Ice class Estimated delivery Employment Stena Paris 49.900 1B 4th quarter, 2005 Time-chartered to TOTAL, 5 years Stena Provence 49.900 1B 1st quarter, 2006 Time-chartered to TOTAL, 5 years Stena Primorsk 49.900 1B 2nd quarter, 2006 Time-chartered to Progetra, 10 years Stena Performance 49.900 1B 3rd quarter, 2006 Open market Stena Progetra 49.900 1B 4th quarter, 2007 Time-chartered to Progetra, 10 years Stena Progress 49.900 1B 1st quarter, 2008 Open market Panamax Is 1A Stena Polaris (50%) 74.500 1A 4th quarter, 2006 Time-chartered to Neste Oil, 10 years Stena Poseidon (50%) 74.500 1A 1st quarter, 2007 Time-chartered to Neste Oil, 10 years EQUITY Equity per share is SEK 36.67 (23.28). The SEK/USD exchange rate on 31-03-2005 was 7.06 (7.57). On 31-12-2004, equity per share was SEK 33.87 and the SEK/USD exchange rate was 6.61. The continuing increase in value of the SEK in the SEK/USD exchange rate during the year reduced equity by SEK 100.6 (40.4) million, which corresponds to SEK 2.11 (0.85) per share. This figure includes a negative effect from the result of hedging USD against SEK with SEK 12.8 million. In November, USD 20 million was hedged and a further USD 40 million was hedged in February, 2005. The accumulated exchange rate differences, including the effects of hedging, recorded directly to equity amount to SEK -126.4 (-30.4) million. LIQUIDITY AND FINANCING The Group’s disposable liquid funds, including unutilised credit facilities, amounted to SEK 807 (332) million on 31 03 2005. On 31-12-2004, consolidated liquid funds totalled SEK 1,153 (320) million. A credit facility amounting to USD 150 million has been in place since 2004. It has a duration of about 7 years and will be made available as the P-MAX tankers are delivered. In November and December, 2004, as protection against a further weakening of the US dollar, USD 80 million were converted into Euros at an average exchange rate of 1.31. In February, half this position was used to hedge USD against SEK. Accordingly, on 31-03-2005, the Group had Euros equivalent to USD 40 million. The USD EUR exchange rate was 1.29 on 31-03-2005 compared with 1.36 on 31-12-2004. The transaction cannot be classified as hedging and is valued at its actual value in the balance sheet and a negative exchange rate difference of SEK 26.0 million, as a result of the USD becoming stronger during the quarter, is included in the result for the period. SECURITIES AND SHORT-TERM INVESTMENTS Arlington In the sale of the two V-MAX tankers to Arlington Tankers Ltd, in November, 2004, 87% of the sales proceeds was paid in cash and 13% in the form of shares. The Group’s shareholding thus consists of 1,534,785 Arlington shares. The price of the share on 31-03-2005 was SEK 23.50 (31-12-2004: USD 23). The holding has been valued at its market value in the balance sheet. Short-term investments During the period, SEK 396.5 million was invested in corporate bonds. Total investments amounted to SEK 544.2 million on 31-03-2005. The largest holdings are Sibneft with SEK 303 million (USD 39.0 million nominal value) and Fred Olsen Energy A/S with SEK 120 million (NOK 101.5 million nominal value) as of 31-03-2005. The holdings have been valued at their actual value in the balance sheet. Changes in value of SEK -0.9 million are included in the result for the period. INVESTMENTS Investments during the period amounted to SEK 76.2 million and consist of advance payments to the shipyard and project costs relating to the vessels on order. Also included is SEK 4.0 million in capitalised interest. RELATED COMPANY TRANSACTIONS Concordia has a small organisation and purchases services from Stena Bulk, a closely related company, which conducts similar tanker business. Accordingly, there is an agreement, which regulates the relationship between the two companies with respect to new business. According to the terms of this agreement, Concordia Maritime has the right to choose whether it wishes to participate 0%, 50% or 100% in the deal in question. Concordia purchases services on a regular basis from Stena Bulk or other companies in the Stena Sphere in the following areas: * Vessel charter. Payment is based on a commission of 1.25% on freight rates. * Commission on the purchase and sale of vessels. Payment is based on a commission of 1% on purchases and sales. * Operation and manning of the Group’s vessels, so-called ship management. Payment is based on a fixed price per year and vessel. * Purchases of bunker oil. Payment is based on a commission of about 0.1% per ton purchased. * Administration, marketing, insurance, technical follow-up and development of Concordia's fleet. Payment is based on a fixed price per month and vessel. In the case of technical consulting services for newbuilding projects, an hourly rate is charged on current account, which is then charged to the project. * Office rent and office services for Concordia's personnel. A fixed price per year is charged. All related company transactions take place on commercial terms and at market-related prices. PARENT COMPANY The Parent Company’s sales totalled SEK 0.4 (4.3) million. Intergroup invoicing accounted for SEK 0.4 (3.5) million of this amount. The result after financial items was SEK -22.7 (-5.6) million. The Parent Company’s disposable liquid funds, including unutilised credit facilities, amounted to SEK 22.1 (5.0) million. There were no investments during the period. FORECAST FOR 2005 The Group has six wholly-owned and two part-owned vessels on order and under construction but currently has no vessels in service. The Group’s revenue and result will mainly be generated by share dividends from Arlington Tankers and interest income from investments and bank funds. The time charter contract for the two V-MAX tankers, which was signed in conjunction with their sale to Arlington Tankers, is expected to generate a break-even result. Apart from the V-MAX tankers, it is anticipated that the Group will conduct a limited amount of chartering in and out. Currently, a product tanker is on charter until July, 2005. The new forecast for the full year is SEK 70 million before tax (previous forecast: SEK 100 million), which corresponds to SEK 1.47 per share (previous forecast: SEK 2.10 per share). The forecast includes the exchange loss of SEK 26 million on the Group’s position in the Euro based on the exchange rate on 31-03-2005. FINANCIAL REPORTING IN ACCORDANCE WITH IFRS FROM 2005 In accordance with the IAS regulation adopted by the European Parliament in 2002, all listed companies in the European Union must comply with International Financial Reporting Standards (IFRS) when preparing their consolidated accounts from 1 January, 2005. Accordingly, the Company’s interim report for the first quarter of 2005 has been prepared in accordance with the IFRS standards adopted by the EU and the interpretations by the EU of standards currently in force, IFRIC. This report has been prepared in compliance with IAS34, 'Interim Financial Reporting'. Full adjustment to IFRS has not had any impact on comparative figures. IAS39 Financial Instruments: Recognition and Measurement, IFRS4 Insurance Contracts and IFRS5 Non-current Assets Held for Sale and Discontinued Operations must be complied with from 1 January, 2005, and is exempted from the requirement to recompute the year of comparison. However, financial instruments were already valued in the annual accounts for 2004 as prescribed in IAS39 and which is permitted in accordance with the amendments made in Ch. 4, §14 of the Swedish Annual Accounts Act and which may be applied from 2004. From 1 January, 2005, the Parent Company has complied with RR32 Accounting of legal entities. Basically, RR32 means that IFRS must be complied with, but with certain exceptions. Compliance with RR32 has not had any impact on the Parent Company’s result and position. REPORTS AND INFORMATION The interim report for the first six months will be published on 11 August and the 9-month interim report on 20 October. Historical and current reports, together with news and comments on the Company and the tanker markets, can be found on our web site (a new updated version is on line from today). Further information may be obtained from Hans Norén, President, Phone: +46 31-85 51 01 or +46 704-85 51 01 Gothenburg, 26 April, 2005 CONCORDIA MARITIME AB Hans Norén President Concordia Maritime AB (publ) Danmarksterminalen S-405 19 GOTHENBURG SWEDEN Phone, head office: +46 31-85 50 00 Corporate number: 556068-5819

About Us

Concordia Maritime is an international shipping company. Our focus is on the cost-efficient and safe transportation of refined petroleum products and edible oils. The series B-share has been listed on Nasdaq Stockholm since 1984.


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