Year End Report 2011

Fourth quarter 2011

• Net revenues amounted to SEK 903 M (640)
• Result before tax amounted to SEK -161 M (-256)
• Result after tax amounted to SEK -194 M (-251)
• Earnings per share after tax amounted to SEK -2.7 (-3.9)

January-December 2011

• Net revenue amounted to SEK 2,989 M (2,394)
• Result before tax amounted to SEK -466 M (407)
• Result after tax amounted to SEK -435 M (585)
• Earnings per share before tax amounted to SEK -6.6 (14.3)
  
  

The loss of SEK -194 M in the fourth quarter was impacted by restructuring
costs totaling SEK -48 M
A multi-year agreement was signed for the AHTS vessel Vidar Viking with
Sakhalin Energy of Russia for services including ice-breaking²
New share issue totaling SEK 555 M implemented acquisition of SBS Marine completed
Henning E. Jensen replaced Rolf Skaarberg as President
Heléne Mellquist appointed as CFO
Effective January 1, 2012, TransViking was renamed Viking Supply Ships
Delivery of the AHTS vessel Brage Viking in January
Work on demerging the Group into two competitive units continues
The Board of Directors proposes that no dividend be paid for the 2011 fiscal year

The past year entailed a great deal of change at TransAtlantic. The global economy was troubled, which was also reflected in the turbulent markets in which TransAtlantic is active, with sharpened competition resulting in unsatisfactory results for 2011. For the fourth quarter, the result was SEK -194 M (- 251), of which SEK -48 M pertained to restructuring costs. For the full year, the result was SEK -435 M (585) of which SEK -194 M pertained to restructuring costs and acquisition effects. In Industrial Shipping, the market was characterized by weak volumes due to low demand, as well as a surplus of tonnage, where the operating result has been negatively affected by the acquisition of Österströms with SEK -48 M. On the other hand, the offshore market was not impacted to the same degree by the general economic downturn, but experienced high volatility with periods of high rates, while significant investments were made in a new organization and new vessels.

For Industrial Shipping, it was a year of major restructuring. Two lines were discontinued at the end of the year. Due to the unfavorable market conditions, low cargo rates and volumes resulted in us experiencing a surplus of tonnage that we are reducing successively in 2011 and 2012. We are also engaged in negotiations aimed at reducing part of the in-chartered volume, combined with a more focused market strategy, which will form a platform for improving profitability in 2012 and further ahead. At the end of the year, the Group completed a new share issue totaling approximately SEK 555 M, with preferential rights for existing shareholders. At the same time, Viking Supply Ships refinanced its existing loans pertaining to the Tor Viking II, Balder Viking and Vidar Viking icebreakers through a new loan of NOK 675 M. The issue strengthened the Group’s financial position.

During the year, the Group completed three acquisitions. During the first half of the year, Arctic Ice Management and the shipping and logistics company Österströms were acquired. The latter will expand Industrial Shipping’s

operation in small bulk and provide the business area with better opportunities to offer customers a broader logistic concept. During the second half year, the offshore company SBS Marine was acquired. SBS Marine is a British offshore shipping company based in Aberdeen, operating a fleet of six Platform Supply Vessels.

Industrial Shipping is a key player in the Baltic Sea for base industry in Northern Europe and a total of 48 vessels operated in the business area at the end of the year, including 11 owned vessels. In October, the business area signed a new agreement with FNSteel and Nordkalk and a new traffic system, the TransBothnia Line, was launched. Viking Supply Ships is expanding and further developing its significant expertise in operations in severe weather conditions and the Arctic waters. During the year, two new vessels, Njord Viking and Magne Viking were delivered. An agreement was signed with the Estonian Maritime Authority for icebreaking in 2012, as well as a long-term agreement with Sakhalin Energy. The latter is conditional upon approval from the Board of TransAtlantic and the banks concerned.

During the year, the work on demerging the Group into two independent and competitive units continues. However, we anticipate that the first quarter results will remain weak with improvements in earnings throughout 2012, starting in Q2. We see exciting business potential in offshore and our objective is to expand this operation in 2012. In Industrial Shipping, we will continue to improve our market position and implement further streamlining efforts to achieve our target of attaining profitability.

Gothenburg, February 28, 2012

Henning E. Jensen
President and CEO

Telephone conference

In connection with the publication of the Year End Report 2011, a teleconference will be held with media, investors and analysts on Tuesday 28, at 09:30 am (GMT + 1) with CEO Henning Jensen and CFO Heléne Mellquist.

Those who would like to participate in the telephone conference call, please call
0047 21 00 21 25 + code 810930

This Year-end report is available in its entirety on the company website, www.rabt.se.

Rederi AB TransAtlantic is a leading Swedish shipping company with headquarters in Gothenburg, Sweden and additional offices in Europe. The company is organised into two business areas: Industrial Shipping and Viking Supply Ships. The fleet consists of 62 vessels and the company has about 850 employees. The turnover in 2011 was MSEK 2 989. The Industrial Shipping business area consists of five divisions: Bulk, Container, RoRo Baltica Short Sea Bulk och Integrated Logistics. 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 the Financial Instruments Trading Act (Sw: lagen om värdepappersmarknaden and lagen om handel med finansiella instrument). The information was submitted for publication on February 28, 2012 at 08.30 am.