Saga Tankers ASA : Q3 2015 financial results

Saga Tankers ASA: Q3 2015 financial results

(Oslo, 27 November 2015) Saga Tankers ASA ("Saga", OSE: SAGA) reported a net asset value (NAV) of NOK 740 million at the end of the third quarter of 2015, corresponding to NOK 2.58 per share, excluding minority interests and with Vallhall valued at book value.

Year to date, the NAV per share has had a return of approximately 25%, compared to the return of the Oslo Børs Benchmark Index (OSEBX) of approximately 1% by end of third quarter 2015.

By the end of third quarter, Saga had a solid cash balance of NOK 522 million and no long term debt outside the real estate holding in Vallhall. Saga has during the year strengthened the administration and management, now consisting of three professionals, in line with the strategy of developing Saga as an investment company.

"Saga has a strong balance sheet and will continuously evaluate investment opportunities that may arise based on the present framework surrounding the industries in which it operates", says Espen Lundaas, Chief Executive Officer of Saga, and continues:

"Whether the company will invest in assets or equities depends on the investment opportunities that may arise, as well as the equity and funding market at the time being. We believe the strong balance sheet is a good foundation for any potential investments going forward."

Third quarter 2015 highlights:

• Final result of the offer on SD Standard Drilling Plc was 68.4% ownership as 8.61% of the outstanding shares accepted the offer at NOK 1.35 per hare
• The development of Saga`s available for sale portfolio has resulted in other comprehensive income of negative NOK 43.7 million. This is mainly due to a share price reduction in NEL ASA, Weifa ASA and Aqualis ASA during the quarter
• Other financial items and exchange difference currency translations are mainly related to SD Standard Drilling Plc

Key figures

Financial assets are adjusted to market value according to IFRS. SD Standard Drilling Plc is a subsidiary (68.4% ownership) and Nickel Mountain Group AB (29.9% ownership) is an associated company and recognized according to the equity method

For further information, please contact:

CEO Espen Lundaas

+47 92 43 14 17

By end of third quarter the largest investments in Saga Tankers ASA were:

Weifa ASA (10.3% ownership):

Weifa is Norway's leading consumer health company. The company supply real value through medicines, lifestyle products and solutions that address the essential needs of
consumers, customers and professional partners. Weifa was founded in 1940 and
now employs about 30 highly qualified people at the headquarters in Oslo. The
company has a strong position in Norway and is the market leader in pain relief,
with well-established brands such as Paracet and Ibux. Weifa are also present in
other key areas such as dietary supplements and treatment for colds and
respiratory problems. Weifa is listed on the Oslo Børs (ticker WEIFA). For

For further information: www.weifa.no

Nel ASA (8% ownership):

NEL ASA is the first dedicated hydrogen company on the Oslo Stock Exchange. The
company has its roots from the hydrogen activities of Norsk Hydro, dating back
to 1927. NEL ASA's main products are hydrogen production plants for industry and
energy applications supplied by NEL Hydrogen AS, and hydrogen refueling stations
supplied by H2 Logic A/S, both of which are 100% subsidiaries of NEL ASA. The
company also holds a number of patents related to tests for early detection and diagnosis of diseases.

For further information: www.nel-asa.com

Aqualis ASA (12.5% ownership):

Aqualis ASA (OSE: Aqua) is a public company that, through its subsidiaries,
offers marine and engineering consultancy services to the offshore oil, gas and
renewable sectors globally. The group employs 230 experienced consultants across
19 offices in 14 countries worldwide. Aqualis ASA operates under two different
brands: Aqualis Offshore and Offshore Wind Consultants. Aqualis Offshore is a
specialized offshore marine and engineering consultancy firm, focusing on the
shallow and deep-water offshore segments of the oil and gas industry. Offshore
Wind Consultants is a globally focused consultancy providing independent services to the offshore renewables industry.

For further information: www.aqualis.no

Vistin Pharma ASA (9.9% ownership):

Vistin Pharma is a Norwegian pharmaceutical company producing Active
Pharmaceutical Ingredients (APIs) and solid dosage forms for the global
pharmaceutical industry. The company has key positions in the Metformin and
Opioids markets, and a strong foundation for creating a highly efficient CMO
business (contract manufacturing of tablets).  Solid growth potentials exist in
all the business segments. The spin-off from Weifa facilitates new growth
opportunities due to a narrower business scope, increased visibility and being
able to pursue own strategic agendas without the risk of compromises across business units.

For further information www.vistin.com

Nickel Mountain Group AB (29.9% ownership):

On October 16, 2015 NMG published that it had, subject to shareholder approval, entered in to a conditional purchase agreement relating to leading Spanish private debt collection company, ALD Abogados S.L. ("ALD") for a total consideration of some 18 million Euro whereof some 5 million Euro in kind via some 47 million NMG-shares to be issued. In this conjunction NMG also announced a fully underwritten directed issue of 400 million shares at an issue price of 1 NOK per share. And in the same context a rights issue of up to 60 million new shares was announced at the same issue price, also fully underwritten.  In essence, NMG has in accordance with previously published intentions embarked on a new growth strategy as international debt collection company, and the mineral assets may be disposed of in due time. An Extraordinary Shareholders' Meeting held on November 17 approved of the proposed acquisition of ALD and the associated share issues. Following the mentioned EGM, a new company management with Mr. Endre Rangnes as new CEO was appointed. 

For further information: www.nickelmountain.se

Vallhall (55% ownership):

Vallhall Arena is Oslo's largest indoor arena, centrally located at Helsfyr in Oslo with good public transportation connections. Several hotels are also located close to the arena. The arena was built in 2001. The cost was approximately NOK 130 million whereof NOK 80 million was funded by debt and NOK 55 million was funded by equity from owners. The arena has about 9 000 square meter expanse. The arena is well-known for its high quality indoor soccer hall and is used by school children, as well as professionals. The arena is also leased out for events such as exhibitors, seminars, concerts and other events requiring facilities that Vallhall Arena can offer.

For further information: www.vallhall.no

SD Standard Drilling Plc (68.4% ownership):

Having sold all initial rig contracts, the strategy of the company has changed to being an investment company within the oil and gas service sector. Main assets are currently cash holdings.

For further information: www.standard-drilling.com

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.