Weekly Market Report. Broker s insight. Chartering (Wet: So er- / Dry: Firm+ ) By Panos Makrinos, SnP Broker

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1 Weekly Market Report Issue: Week 33 Tuesday 20 th August 2013 By Panos Makrinos, SnP Broker Broker s insight As everyone in the shipping industry pre y much expected, this was another summer that would significantly weigh down on SnP ac vity, with the majority of players having chosen to take some me off to relax rather than stay around to lurk for buying opportuni es in the secondhand market. Since those poten al buyers appear to have se led for this wait and see strategy, the ques on that naturally comes to mind is what will the upcoming months hold both for the secondhand and the newbuilding market, the la er having witnessed very impressive ac vity in the first half of the year. The market bears firmly belief that there is more than enough room for prices to fall 10% - 15% from their currents levels and that in no way this con nuous price strengthening witnessed those past few months could repeat itself, at least un l the end of the year, especially in the dry bulk market. On the other hand, those who are less pessimis c believe that due to lack of sales candidates, especially 90s Supras and Handies and modern Panamaxes, prices will not so en further but most probably will inch up a bit due to compe on amongst willing buyers. The direc on of the demoli on market will undoubtedly play a very important role to the overall SnP market. The fact that during the first half of the year the number of vessels that have gone for scrap in India is less than half compared to the same period in 2012, certainly doesn t draw a rosy picture for what the second half of the year might hold. What was expected to be another record year for demoli on ac vity, that would further relief the market from excess tonnage, has proved to be quite disappoin ng, due to slowing steel demand, and a trembling Indian Rupee, which hopefully will be supported more decisively by the Indian government going forward. While the demo market has been shaking, the newbuilding market has been going from strength to strength in As yards fought for survival during 2012, a year extremely tough on the balance sheet of most of them, they drove newbuilding prices down to levels extremely a rac ve for those owners who could access financing. The low price levels in combina on with a rac ve specs/ new fuel efficient designs has managed to lure more and more owners into the ordering game. So there you have it. Fewer vessels are coming off the market and more will be added star ng next year. And even though everyone had realized that for the past four years tonnage overcapacity has denied this market a faster recovery, it seems that this very same problem is appearing once again in front of our eyes. Unless a reversal in the current trends takes place soon, it does seem more likely that asset values will go down rather than up and that the scrap age of teens might become the new normal. Scary but possible. Chartering (Wet: So er- / Dry: Firm+ ) When it comes to the Dry Bulk market drying up leave it to Capes to turn things around. While the rest of the segments moved sideways last week, Cape rates shoot up as charterers got excited in both basins. The BDI closed today (20/08/2013) at 1145 points, up by 30 points compared to Monday s levels (19/08/2013) and an increase of 138 points compared to previous Tuesday s levels (13/08/2013). While Afras enjoyed a great week and Suezmaxes showed some resistance in an uninspiring market, rates for VLs dropped even further providing no hope whatsoever for an August posi ve reversal. The BDTI Monday (19/08/2013), was at 647 points, an increase of 16 points and the BCTI at 552, a decrease of 18 points compared to the previous Monday s levels (12/08/2013). Sale & Purchase (Wet: Firm+ / Dry: Stable+ ) Modern VL tonnage admi edly had the lion s share in the SnP front last week. Considering the fact that this is usually one of the most quiet periods of the year, there has been a decent number of sales being reported, with a big chunk of them being concluded on an en-bloc basis. On the Tankers side, we had the en-bloc sale of the HARBOUR SPLEN- DOR (297,052dwt-blt 10 China), the SEA SPLENDOR (297,000dwt-blt 11 China), the ISLAND SPLENDOR (296,919dwt-blt 11 China) and the SPRING SPLENDOR (296,908dwt-blt 11 China), which were picked up by Chinese buyer and previous Charterer of all four, Sinochem, for a price of US$ 60.0m each. On the dry bulker side, we had the sale of the PACIFIC CONFIDENCE (180,181dwt-blt 04 Japan), which was picked up by Greek buyer Oceanbulk for a price of $ 25.0m. Newbuilding (Wet: Stable+ / Dry: Stable+ ) While the SnP market witnessed the occasional ac vity slow down during the summer season, the newbuilding market has remained steadily ac ve week by week. Owners who have placed their bets on a 2014 recovery will soon find out if they placed their money right but despite the outcome of this bet one thing is certain; those newbuilding prices have certainly been too a rac ve to pass on, provided your balance sheet wasn't already giving you nightmares and that you could get access to financing. In terms of concluded deals, Chinese Taipei Global Energy reportedly placed an order for 2 s (318,000dwt) at Japan Marine, Japan at a price of US$ 93.0m each, with delivery set for The price of the order is at the high end of the current market and further reinforces the argument that the newbuilding market probably reached its bo om some me during the last twelve months. Demoli on (Wet: Stable- / Dry: Stable- ) It has been a while since anything posi ve has happened in the demoli- on market and it seems that as we head towards the end of the summer season the lack of any major posi ve catalysts will persist. The end of the Eid holidays had absolutely no effect in the Indian sub-con nent demo volumes, which remained subdued. The further bo oming of the Indian Rupee against the US Dollar con nues to be a big headache for local breakers, who have been watching the efforts of the Indian government to support the currency hi ng a wall so far. Taking everyone by surprise, Chinese breaking yards have further increased their bids, narrowing even more the gap between themselves and their compe on. It is very soon to tell if this recent strength displayed by China can be sustained, but it is definitely comfor ng to see that a er all maybe it s not all black in this market. Prices overall weakened this week, with wet tonnage going for around $/ldt and dry units seeing levels of about $/ldt.

2 Wet Market Dirty Clean Aframax Suezmax Vessel Suezmax Aframax Panamax MR Handy size Routes Week 33 Week 32 $/day $/day $/day ±% $/day $/day WS points Spot Rates WS points 265k MEG-JAPAN 32 8, , % 8,807 21, k MEG-USG 21 3, , % -1,430 1, k WAF-USG 40 18, , % 13,899 31, k MED-MED 63 15, , % 10,480 22, k WAF-USAC 63 17, , % 7,494 13, k BSEA-MED 63 16, , % 10,480 22,121 80k MEG-EAST 85 13, , % 6,995 14,182 80k MED-MED 78 12, , % 8,921 13,700 80k UKC-UKC , , % 8,959 18,517 70k CARIBS-USG , , % 8,742 12,325 75k MEG-JAPAN 73 8, , % 7,043 11,258 55k MEG-JAPAN 90 8, , % 7,626 10,867 37K UKC-USAC 100 5, , % 9,666 9,251 30K MED-MED , , % 12,973 19,062 55K UKC-USG , , % 10,175 16,571 55K MED-USG , , % 8,443 14,735 50k CARIBS-USAC , , % 9,854 13,028 $/day TC Rates Week 33 Week 32 ±% Diff k 1yr TC 18,200 18, % 0 19,068 22, k 3yr TC 22,200 22, % 0 23,912 27, k 1yr TC 16,200 16, % 0 16,280 17, k 3yr TC 17,700 17, % 0 18,533 21, k 1yr TC 13,200 13, % 0 13,455 13, k 3yr TC 14,950 14, % 0 15,215 16,070 75k 1yr TC 15,200 14, % ,985 13,245 75k 3yr TC 15,700 15, % 0 15,548 14,368 52k 1yr TC 14,450 14, % 0 14,341 13,764 52k 3yr TC 15,450 15, % 0 15,011 14,589 36k 1yr TC 12,950 12, % 0 13,098 12,567 36k 3yr TC 13,700 13, % 0 13,692 13,378 WS points WS points Suezmax Aframax LR1 Indicative Market Values ($ Million) - Tankers Vessel 5yrs old MR Indicative Period Charters - 06 mos - 'Polymnia 1' ,000dwt - $ 21,000/day - PDVSA mos - 'Elise Schulte' ,000dwt - $ rnr - Navig TD3 TD5 TD8 TD4 TC2 TC4 TC6 TC1 DIRTY -WS RATES CLEAN -WS RATES Aug-13 Jul-13 ±% KT DH % KT DH % KT DH % KT DH % KT DH % Chartering This past week VLs resumed their role as the weakest link amongst the crude oil carriers market. With the price of oil heading north and with most stems now covered for the current month, owners don't have much to smile about. As any posi ve spill overs from the Suez market have currently faded, the majority of the market is already looking towards September ac vity for a much needed reversal. Rates for Suezmaxes have also so ened this week but they are s ll holding off much be er compared to those of VLs. The most tradi onal Suez routes were all quoted at around WS 63 at the end of the week and while fixtures ex-waf slowed down a bit compared to the week prior, the route s ll pays above $ 17,000/day allowing some breathing space to owners. Afra rates, no ng the best performance across the market, surged in the North Sea/Bal c region, resuming their upward movement in the area from the week before. Once more revived fixing ac vity synchronized with short ballas ng lists and offered owners the upper hand for a second week in a row. At the same me ac vity in the Black Sea/Med sustained its levels from the week prior despite holidays towards the end of the week in nearby European countries. Sale & Purchase In the VL sector we had the en-bloc sale of the HARBOUR SPLEN- DOR (297,052dwt-blt 10 China), the SEA SPLENDOR (297,000dwt-blt 11 China), the ISLAND SPLENDOR (296,919dwt-blt 11 China) and the SPRING SPLENDOR (296,908dwt-blt 11 China), which were picked up by Chinese buyer and previous Charterer of all four, Sinochem, for a price of US$ 60.0m each. In the MR sector, we had the sale of the MOSCOW SEA (47,363dwt-blt 98 Croa a), which went for a price of US$ 10.0m to Singaporean buyer, Wilmar. Intermodal Research 20/08/2013 2

3 Dry Market Capesize Panamax Supramax Handymax Handysize Baltic Indices Week 33 Week 32 16/08/ /08/2013 Point $/day Diff ±% Index $/day Index $/day Index Index BDI 1,102 1, BCI 2,112 $14,377 1,813 $10, % 1,510 1,571 BPI 923 $7, $7, % BSI 916 $9, $9, % BHSI 517 $7, $7, % Period $/day Week Week ±% Diff K 6mnt TC 18,950 17, % 1,750 13,052 13, K 1yr TC 18,200 15, % 2,250 12,939 13, K 3yr TC 17,200 17, % 0 14,230 15,282 76K 6mnt TC 10,825 10, % ,361 11,003 76K 1yr TC 8,950 8, % 0 8,958 9,906 76K 3yr TC 9,700 9, % 0 9,477 10,888 55K 6mnt TC 10,700 10, % 0 10,666 11,176 55K 1yr TC 9,700 9, % 0 9,571 10,330 55K 3yr TC 9,950 9, % 0 9,950 11,195 45k 6mnt TC 9,450 9, % 250 8,942 9,375 45k 1yr TC 8,700 8, % 250 8,276 8,849 45k 3yr TC 8,950 8, % 0 8,897 9,575 30K 6mnt TC 8,450 8, % 250 7,548 8,255 30K 1yr TC 7,950 7, % 0 7,852 8,424 30K 3yr TC 8,950 8, % 0 8,723 9,450 Chartering Right when the BDI seemed ready for another dive below the 1000 points level, the Dry Bulk market made a significant comeback this week, a ributed en rely to the stellar performance of the Capesize segment. Rates for Capes moved decisively north this week, with fixing ac vity firing up in both basins. Some big names like Vale came to the rescue by concluding a significant number of fixtures in the Atlan c, while at the same me the trans-atlan c round voyage surpassed the $ 12,000/day level. Rates for the segment have been moving pre y much in a yo-yo pa ern, thus not allowing owners to crack open the champagne bo les just yet. Saying that, it wasn't long ago that the average rate was quoted at the low $4,000/day, so it might be safe to say that a new floor has been created just below $ 10,000/day and we sure hope for it not to break. Index $/day 3,000 2,500 2,000 1,500 1, ,000 25,000 20,000 15,000 10,000 5,000 0 Capesize Panamax Supramax Handysize Baltic Indices BCI BPI BSI BHSI BDI Average T/C Rates AVR 4TC BCI AVR 4TC BPI AVR 5TC BSI AVR 6TC BHSI Indicative Market Values ($ Million) - Bulk Carriers Vessel 5 yrs old Indicative Period Charters -6/9 mos - 'Tenshin Maru' ,687dwt - ex drydock CJK 20/25 Aug - $ 9,000/day - cnr - 3/5 mos - 'Laconic' ,474dwt - dely Japan 18/22 August - $ 8,900/day - Daewoo Aug-13 Jul-13 ±% k % K % k % K % Sale & Purchase In the Capesize sector, we had the sale of the PACIFIC CONFI- DENCE (180,181dwt-blt 04 Japan), which was picked up by Greek buyer Oceanbulk for a price of $ 25.0m. In the Panamax sector we had reports of the sale of the LOWLANDS GHENT (76,801dwt-blt 04 Japan) which went to Greek buyers for a net price of $ 16.5m. The posi ve sen ment washing over the Capesize segment wasn't shared by the Panamax sector. Despite some fresh inquiries appearing in the Atlan- c in the beginning of the week, the long ballasters lists managed to further weigh down on rates in the region. At the same me, the performance of rates for both Supras and Handies witnessed another uninspiring week. The former witnessed less fixing ac- vity ex-us Gulf, which was nevertheless counterbalanced by firm flow of Black Sea grain cargoes. Intermodal Research 20/08/2013 3

4 Secondhand Sales Tankers Size Name Dwt Built Yard M/E SS due Hull Price Buyers Comments HOUSTON 318, HYUNDAI, S. Korea Wartsila - DH undisclos ed ITHAKI 317, HYUNDAI, S. Korea MAN-B&W Aug-16 DH undisclos ed MARINA 299, HYUNDAI, S. Korea MAN-B&W Mar-14 DH undisclos ed JV of PDVSA and CNPC GEORGIOS 299, HYUNDAI, S. Korea MAN-B&W May-14 DH undisclos ed HARBOUR SPLENDOR 297, DALIAN, China MAN-B&W Mar-15 DH $ 60.0m SEA SPLENDOR 297, DALIAN, China MAN-B&W Mar-17 DH $ 60.0m ISLAND SPLENDOR 296, SHANGHAI JIANGNAN, China MAN-B&W Mar-16 DH $ 60.0m Chines e (Sinochem) ves s els were on a high T/C to Sinochem, which is now cancelled SPRING SPLENDOR 296, SHANGHAI JIANGNAN, China MAN-B&W Jan-16 DH $ 60.0m AFRA EUROSEA 96, SAMSUNG, S. Korea B&W Aug-13 DH $ 7.8m Thai (Nathalin) s torage project LR1 JUNIPER 4 73, STX, S. Korea MAN-B&W Apr-17 DH $ 25.0m Greek bank deal, epoxy LR1 JUNIPER 3 73, STX, S. Korea MAN-B&W Mar-17 DH $ 25.0m MR ST. GABRIEL 51, STX, S. Korea MAN-B&W Jan-16 DH $ 20.0m epoxy undisclosed MR ST. MICHAELIS 51, STX, S. Korea MAN-B&W Nov-15 DH $ 20.0m epoxy MR MOSCOW SEA 47, BRODOTROGIR, Croatia B&W Oct-13 DH $ 10.0m Singaporean (Wilmar) SS/DD due, epoxy PROD/ CHEM CLIPPER MAKISHIO 19, FUKUOKA NAGASAKI, Japan MAN-B&W Feb-14 DH $ 26.0m Chines e (Sinochem) StSt MPP/General Cargo Name Dwt Built Yard M/E SS due Gear Price Buyers Comments YONG DA 14, PEENE-WERFT, Germany Sulzer Mar-14 2 X 40t $ 2.6m S. Korean (VFM) YONG CAI 14, PEENE-WERFT, Germany Sulzer Oct-13 2 X 40t $ 2.6m Intermodal Research 20/08/2013 4

5 Secondhand Sales Bulk Carriers Size Name Dwt Built Yard M/E SS due Gear Price Buyers Comments CAPE PACIFIC CONFIDENCE 180, IMABARI SAIJO, Japan MAN-B&W Mar-14 $ 25.0m Greek (Oceanbulk) CAPE SHINING STAR 177, MITSUI CHIBA, Japan MAN-B&W Jun-14 $ 25.0m Greek (Oceanbulk) CAPE NSS BONANZA 170, KOYO MIHARA, Japan B&W Jul-16 $ 12.3m Chinese PMAX LOWLANDS GHENT 76, SASEBO, Japan B&W Jul-14 $ 16.5m Greek PMAX C. S. QUEEN 72, SASEBO, Japan B&W Jun-18 $ 9.0m undislosed PMAX YANGZHOU DAYANG DY , YANGZHOU DAYANG, China MAN-B&W - 4 X 35t $ 26.5m Greek SMAX OCEAN ALLIANCE 52, TSUNEISHI, Japan MAN-B&W Aug-14 $ 16.3m Greek HMAX YIN PENG 43, TSUNEISHI, Japan B&W - $ 4.0m Qatari HANDY SHARK ISLAND 28, HUDONG SHIPYARD, China B&W May-16 undisclosed Greek HANDY PAN LEADER 26, HAKODATE, Japan B&W Sep-16 $ 2.2m S. Korean HANDY KEN SHO 23, SAIKI, Japan B&W May-15 $ 5.2m undisclosed Containers Size Name Teu Built Yard M/E SS due Gear Price Buyers Comments POST PMAX POST PMAX PUCON 6, PUELO 6, HYUNDAI, S. Korea HYUNDAI, S. Korea MAN-B&W Aug-16 $ 47.0m MAN-B&W Nov-16 $ 47.0m Greek (Diana) TC back to CSAV at $27.900/day for mos FEEDER PCE MADEIRA 1, HANJIN, S. Korea B&W Feb-14 2X 40t CRS,1X 10t CRS $ 2.5m Turkish FEEDER CALA PUMA 1, IMABARI, Japan MAN-B&W Sep-16 3 X 45t CRS undisclos ed USA based FEEDER STADT RATZEBURG 1, DAE SUN, S. Korea MAN-B&W May-17 undi sclos ed German FEEDER FLINTERCARRIER NANTONG MINGDE, China Wartsila - undisclos ed Singaporean (Sea Consortium) Intermodal Research 20/08/2013 5

6 Newbuilding Market Gas Tankers Bulkers Indicative Newbuilding Prices (million$) Vessel Week Week ±% Capesize 180k % Panamax 77k % Supramax 58k % Handysize 35k % k % Suezmax 160k % Aframax 115k % LR1 75k % MR 52k % LNG 150K % LGC LPG 80k % MGC LPG 52k % SGC LPG 23k % While the SnP market witnessed the occasional ac vity slow down during the summer season, the newbuilding market has remained steadily ac ve week by week. Owners who have placed their bets on a 2014 recovery will soon find out if they placed their money right but despite the outcome of this bet one thing is certain; those newbuilding prices have certainly been too a rac- ve to pass on, provided your balance sheet wasn't already giving you nightmares and that you could get access to financing. Last week, Chinese Taipei Global Energy reportedly placed an order for 2 s (318,000dwt) at Japan Marine, Japan at a price of US$ 93.0m each, with delivery set for The price of the order is at the high end of the current market and further reinforces the argument that the newbuilding market probably reached its bo om some me during the last twelve months. Tankers Newbuilding Prices (m$) Bulk Carriers Newbuilding Prices (m$) 180 Suezmax Aframax LR1 MR 110 Capesize Panamax Supramax Handysize mil lion $ million $ Newbuilding Orders Units Type Size Yard Delivery Buyer Price Comments 2 Tanker 318,000 dwt Japan Marine, Japan 2016 Chinese Taipei (Global Energy) $ 93.0m 2 Tanker 37,000 dwt Hyundai, S. Korea 2014/2015 Irish (Ardmore) $ 32.7m 4 Bulker 64,000 dwt 2+2 Bulker 64,000 dwt Zhejiang Yangfan, China Zhejiang Zegzhou, China 2016 Italian (D'Amico) $ 25.0m 2015 Canadian (CanForNav) $ 25.0m 2 Bulker 64,000 dwt Guangzhou, China 2015 Chinese (Haihong Shipping) $ 25.0m 2 Bulker 58,000 dwt 2 Bulker 39,500 dwt Tsuneishi Cebu, Philippines Zhejiang Yangfan, China 2015 HK based (Uni-Asia) undisclosed 2015 Italian (D'Amico) undisclosed 2 Gas 174,000 cbm Samsung, S. Korea 2016 Monaco based (GasLog) undisclosed LNG 4 Gas 3,500 cbm Kitanihon, Japan 2015 Greek (Brave Maritime) undisclosed LPG Intermodal Research 20/08/2013 6

7 Demoli on Market Wet Dry Indicative Demolition Prices ($/ldt) Markets Week Week ±% Bangladesh % India % Pakistan % China % Bangladesh % India % Pakistan % China % It has been a while since anything posi ve has happened in the demoli on market and it seems that as we head towards the end of the summer season the lack of any major posi ve catalysts will persist. The end of the Eid holidays had absolutely no effect in the Indian sub-con nent demo volumes, which remained subdued. The further bo oming of the Indian Rupee against the US Dollar con nues to be a big headache for local breakers, who have been watching the efforts of the Indian government to support the currency hi ng a wall so far. Taking everyone by surprise, Chinese breaking yards have further increased their bids, narrowing even more the gap between themselves and their compe on. It is very soon to tell if this recent strength displayed by China can be sustained, but it is definitely comfor ng to see that a er all maybe it s not all black in this market. Prices overall weakened this week, with wet tonnage going for around $/ldt and dry units seeing levels of about $/ldt. The highest price amongst recently reported deals, was that paid by Indian breakers for the Container vessel MSC ANTWERP (59,567dwt-blt 93), which received a price of $ 414/ldt. Wet Demolition Prices Dry Demolition Prices 550 Bangladesh India Pakistan China 550 Bangladesh India Pakistan China $/ldt $/ldt Demolition Sales Name Size Ldt Built Yard Type $/ldt Breakers Comments RICHELIEU 28,595 7, COCKERILL, Belgium BULKER $ 320/Ldt Turkish MSC ANTWERP 59, KOYO MIHARA, Japan CON $ 414/Ldt Indian Intermodal Research 20/08/2013 7

8 Commodi es & Ship Finance Currencies Stock Exchange Data Market Data 16-Aug Aug Aug Aug Aug-13 W-O-W Change % 10year US Bond % S&P 500 1, , , , , % Nasdaq 3, , , , , % Dow Jones 15, , , , , % FTSE 100 6, , , , , % FTSE All-Share UK 3, , , , , % CAC40 4, , , , , % Xetra Dax 8, , , , , % Nikkei 13, , , , , % Hang Seng 22, , , , , % DJ US Maritime % $ / % $ / % / $ % $ / NoK % Yuan / $ % Won / $ 1, , , , , % $ INDEX % 110 oil MDO 380cst Basic Commodities Weekly Summary Oil WTI $ Oil Brent $ Gold $ 1,420 1,340 gold 1,260 1,180 Bunker Prices W-O-W 16-Aug-13 9-Aug-13 Change % Rotterdam % Houston 1, % Singapore % Rotterdam % Houston % Singapore % Company Maritime Stock Data Stock W-O-W Curr. 16-Aug Aug-13 Exchange Change % AEGEAN MARINE PETROL NTWK NYSE USD % BALTIC TRADING NYSE USD % BOX SHIPS INC NYSE USD % CAPITAL PRODUCT PARTNERS LP NASDAQ USD % COSTAMARE INC NYSE USD % DANAOS CORPORATION NYSE USD % DIANA SHIPPING NYSE USD % DRYSHIPS INC NASDAQ USD % EAGLE BULK SHIPPING NASDAQ USD % EUROSEAS LTD. NASDAQ USD % FREESEAS INC NASDAQ USD % GENCO SHIPPING NYSE USD % GLOBUS MARITIME LIMITED NASDAQ USD % GOLDENPORT HOLDINGS INC LONDON GBX % HELLENIC CARRIERS LIMITED LONDON GBX % NAVIOS MARITIME ACQUISITIONS NYSE USD % NAVIOS MARITIME HOLDINGS NYSE USD % NAVIOS MARITIME PARTNERS LP NYSE USD % NEWLEAD HOLDINGS LTD NASDAQ USD % PARAGON SHIPPING INC. NYSE USD % SAFE BULKERS INC NYSE USD % SEANERGY MARITIME HOLDINGS CORP NASDAQ USD % STAR BULK CARRIERS CORP NASDAQ USD % STEALTHGAS INC NASDAQ USD % TSAKOS ENERGY NAVIGATION NYSE USD % TOP SHIPS INC NASDAQ USD % Aegean profit doubles Finance News Aegean Marine Petroleum has seen its profit for the second quarter of 2013 double compared to a year ago. The Nikolas Tavlarios-led bunker supplier saw net income increase to $5.5m versus the $2.7m seen twelve months earlier. The increase in profit comes despite revenues for the three months declining year-on-year by over 10% to $1.7bn. However, the US-listed company was helped by a combina on of lower opera ng costs, lower finance costs and lower income taxes. Figures for the 2012 second quarter were also impacted nega vely by a $4.2m loss on vessel disposals. This year it booked a small profit. The volume of marine fuel sold by the company during the quarter was 2.7mt, largely unchanged from a year ago. During the quarter we entered new markets to strengthen our revenue base, strategically posi oning Aegean for con nued success as the market emerges from the current shipping cycle, said company president Nikolas Tavlarios. Our expansion into the Port of Algeciras will increase our presence in the rapidly growing Western Mediterranean market, further diversify our revenue base and improve our fleet u liza on. During the quarter we also announced a coopera- on agreement with SK Lubricants, which will expand our opera ons in Asia and increase volumes in our marine lubricants business. (Trade Winds) The informa on contained in this report has been obtained from various sources, as reported in the market. Intermodal Shipbrokers Co. believes such informa on to be factual and reliable without making guarantees regarding its accuracy or completeness. Whilst every care has been taken in the produc on of the above review, no liability can be accepted for any loss or damage incurred in any way whatsoever by any person who may seek to rely on the informa on and views contained in this material. This report is being produced for the internal use of the intended recipients only and no reproducing is allowed, without the prior wri en authoriza on of Intermodal Shipbrokers Co. Compiled by Intermodal Research & Valua ons Department research@intermodal.gr Analysts: Mr. George Lazaridis g.lazaridis@intermodal.gr Ms. Eva Tzima e.tzima@intermodal.gr