Interim Report January-March 2013

• Net revenues amounted to SEK 685 M (861)
• Result before capital costs, EBITDA, amounted to SEK -18 M (-15)
• Result before tax amounted to SEK -138 M (-132)
• Result after tax amounted to SEK -137 M (-132)
• Earnings per share after tax amounted to SEK -1.2 (-1.2)

Major events

• Viking Supply Ships implements, with effect from July 1, 2013, a new organizational structure to centralize all support functions as well as operational management at the head office in Copenhagen.
• Swedish Maritime Administration decided not to extend the charter contracts for AHTS icebreakers Tor Viking and Balder Viking. The vessels will be available for contracts after Q1 2014 and Q1 2015 respectively.
• Viking Supply Ships entered into a time charter contract for one of its AHTS icebreaker vessels with a major oil company.
• Viking Supply Ships completed a tap issue of SEK 87 M (tranche 2) under the existing bond agreement.
• The company works with lending banks to ensure a stable short and long-term financing. TransAtlantic has received waivers for the first quarter, 2013, in conjunction with the Group failing to fulfill some of the loan agreements on financial key figures.

Profit before tax before restructuring cost for the first quarter amounted to SEK -138 M which is unsatisfactory. Profit before tax for the group is split into SEK -76 M (-88) for Viking Supply Ships and SEK -62 M (-63) for Industrial Shipping.

As stated in the 2012 Annual Report that was published during the first quarter, the Group’s liquidity is strained and exposed to risks. As we have previously communicated, initiatives to strengthen the company’s profitability and liquidity have been initiated and we also continue to work proactively with lenders to ensure a stable short and long-term financing.

In addition, the company’s Board of Directors in April unanimously decided to seek shareholders’ approval for a capital increase through a rights issue of SEK 150 M. This is in order to improve the funding structure, liquidity and ultimately the operational performance of the Industrial Shipping division in an even quicker fashion than earlier planned. RABT will seek approval for this rights issue at an extraordinary shareholders meeting, date to be announced.

Industrial Shipping
The market situation has deteriorated both in terms of volumes and rates during the first quarter and as Industrial Shipping’s customers experience lower demands from the European market, the volumes decrease for TransAtlantic. This effect is compounded by the strengthening of the Swedish krona. We currently see no signs of recovery for the remainder of the year. This calls for deeper actions in order to get a competitive structure and every stone is turned in order to streamline the organization while still maintaining focus on customers and commercial incentives. The division has recently appointed Birna Ödefors as new CCO and we believe her experience and background will be of great benefit for further developing Industrial Shipping to become significantly more dynamic and competitive.

Viking Supply Ships
Viking Supply Ships (VSS) has started to centralize all support functions as well as operational management at the headquarters in Copenhagen. This means that the Kristiansand office will proceed as a commercial office and the VSS Gothenburg office will be closed. The reorganization will be implemented by July 1, 2013. During the quarter, Viking Supply Ships completed a tap issue of  SEK 87 M (tranche 2) under the existing bond agreement. We also announced that the Swedish Maritime Administration decided to not extend the charter contracts for AHTS icebreakers Tor Viking and Balder Viking and that one of these vessels quickly entered into a time charter contract with a major oil company.

The quarter was characterized by positioning in the spot market and sales activities towards longer term contracts. We believe Viking Supply Ships to be well positioned in its market with a growing number of opportunities for longer term contracts in VSS’ areas of expertise. Viking Supply Ships cost structure is competitive, while that of Industrial Shipping needs to be improved in order to react to deteriorating market conditions.

For the RABT group, the next quarter will continue to be challenging because of the same underlying market conditions as in recent quarters. The key is to try to offset a deteriorating market in Industrial Shipping with operational and structural savings as well as market share gains.

The financial report is available in its entirety on www.rabt.se.

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In conjunction with the publication of the Q1 report 2013, an earnings call will take place on Wednesday May 15, 2013 at 01.00 pm (GMT + 1) with TransAtlantic’s CEO, Henning E. Jensen and interim CFO Erik Hansen.

Please dial in 5-10 minutes prior to start using the number and confirmation code below:

Phone number: +472316 2787
Confirmation code: 2875599

Prior to the call, a presentation will be published on http://rabt.se/en/Investor-Relations

Rederi AB TransAtlantic is a leading Swedish shipping company with headquarters in Gothenburg, Sweden and additional offices in Europe. The company is organized into two business areas: Industrial Shipping and Viking Supply Ships. The company has about 800 employees and the turnover in 2012 was MSEK 3,274. The Industrial Shipping business area consists of three divisions: Bulk, Container and RoRo. The company’s B-shares are listed on the NASDAQ OMX Stockholm, Small Cap segment. www.rabt.se

TransAtlantic is obliged to make this information public according to the Financial Markets Act and/or the Financial Instruments Trading Act (Sw: lagen om värdepappersmarknaden and lagen om handel med finansiella instrument). The information was submitted for publication on May 15, 2013 at 08.30 a.m.

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