Bergesen d.y. ASA

Presentation forHandelsbanken Markets

May 23rd 2001

CFO Garup Meidell

Bergesen d.y. ASABergesen d.y. ASA

• LPG• Ammonia• Petrochem.

gases• LNG• 61 ships• 3 newbuilds (1LPG/2LNG)

• Iron ore• 7 ships• 1 newbuild

• Crude oil• 18 VLCCs• 2 Ore/oilers• 2 newbuilds

• 2 FPSOs• 1 LPG FPSO• 2 FPSOs

underconversion

Company overview

Gastransportation

Gastransportation Dry bulk transportation

Dry bulk transportationCrudetransportation

Crudetransportation Offshoresolutions

Offshoresolutions

Company overview• USD 1,5 bn market capitalisation• USD 1,8 bn value adjusted equity• USD 197 million t/c-revenues (2001 Q1)• USD 104 million operating result (2001 Q1)• 3,500 employees world-wide

EBITDA per segment (2001 Q1)

EBITDA per segment (2001 Q1)

Fleet value per segment (2001 Q1)Fleet value per

segment (2001 Q1)

Dry bulk4 %

Offshore6 %

Crude oil44 %

Gas46 %

Dry bulk6 %

Offshore8 %

Crude oil39 %

Gas47 %

Synergies in Bergesen

OFFSHORE

LPG TANKMaturemarkets

Growthmarkets

LNG

� Tonnage

� Capital

� Relations

� Competence

Securesaccess tonew growthareas

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100125150175200225250275300325350375400425450475500525550

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Bergesen d.y. A-shareOslo Stock Exchange Total Index rebased

A decade of poor share performance...

Oslo Børs Total Index

Bergesen A

...due to weak ROCE during 1992-96

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Return on Capital Employed (RoCE)Weighted Average Cost of Capital (WACC)

New strategy - per segment

GASS

• Main business area (VLGC, LGC)• Growth opportunities in LNG• Customer based solutions• Further consolidation

TANK• Independant operator• Opportunistic approach

OFFSHORE

• Leading on generic low-cost solutions• Strong cost control• Conversion of both VLCCs and VLGCs• Organic growth

BULK• Protect and develop close customer relations• Tailor-made ships / long-term contracts

New strategy - general

• Cost cutting– new crewing policy– outsourcing of technical management on some

vessels• Streamlining of balance sheet

– sale of non-core assets– increase gearing through new investments

• Focus on shareholders value– buy-back of shares– increasing dividend

Gas transportation

GAS TRANSPORTATION

• The LPG market is supply driven• Poten & Partners estimates 2,0%, 6,8% and 3,2% p.a. Growth

in LPG exports in 2001, 2002 and 2003 respectively:

The LPG market

Source: Poten & Partners

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1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Million tons

Middle East Asia Africa Europe USA Latin America

• Fleet growth for VLGC fleet in 2001, 2002 and 2003: 8,5%, 1,0% and 4,8% p.a. - before scrapping.

• Limited growth for LGC and MGC fleets.

VLGC fleet age profile

• The order book 2001-2003 represents 11% ofcurrent VLGC fleet.

• 22% of the VLGC fleet above 25 years of age• Increasingly difficult to operate vintage vessels

commercially due to charterers hesitance.

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Alternative trade for VLGC in naphtha• To increase utilisation, the VLGCs can trade naphtha from

Arabian Gulf to Japan/Korea• VLGCs are swing-tonnage when large product carriers (LR)

are fully employed• New naphtha capacity has increased exports from the

Emirates (excempted from OPEC quotas), but this trade ishighly seasonal:

• Limited fleet growth for LR product carrier 2001-2002 shouldprovide opportunites for continued VLGC employment innaphtha.

LR product average spot earnings yr/yr (naphtha trade) 1994-2001

140001500016000170001800019000200002100022000230002400025000

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Henry Hub historical spot Henry Hub Nymex future

High natural gas prices - positive for LPG

• US based ammonia producers close capacity athome and imports ammonia due to high feedstockprices (natural gas)

• Higher imports of LPG (propane & butane) to USAbecause less LPG is being separated from thenatural gas when prices are high

NYMEX future pricesindicates high expectationsfor natural gas prices the

next 4 years

LPG FPSO

Future potential within floating production:• Bergesen operates 1 LPG FPSO, Berge Troll:

• Flaring of gas prohibited in Nigeria as of 2008• Oil majors avoid flaring due to environmental

reasons• Gas injection is technically challening and

expensive• Bergesen has a suitable fleet of 1978-82 built

VLGCs available

VLGC segment outlook

• Low growth in LPG volumes 2000 / 2001– out of the Middle East due to internal use of LPG in Saudi

Arabia– increasing volumes again from 2002

• Increasingly difficult to operate vintage vesselsdue to charterers preference for younger vessels

• Alternative VLGC employment in naphtha• High natural gas prices in the USA• New trades and longer distances

– more long-haul LPG export from Africa to Asia

• Future potential within floating production

Generally positive outlook, but large influx of new vessels over the next 12 monhts

LGC and MGC segments outlook

• Bergesen LGC pool-cooperation with Russianammonia producers

• Strong Atlantic ammonia and LPG markets due tohigh US natural gas prices

• Benefits from consolidation (Bergesen and Exmarpools

• More difficult to operate vintage vesselscommercially

– Bergesen has initiated fleet renewal

• Limited fleet growth for both LGC and MGC

Favourable market outlook

LNG

The energy of the future

Why invest in the LNG market?� Significant internal know-how in gas

transportation� Owns two 30.000 cbm LNG carriers

� (Century on 7 yr t/c in LNG, Havfru 2 years t/c in LNG)

� Natural gas is the energy of the future ->LNG a new growth market for Bergesen

� LNG market in structural changes� Full utilisation of current LNG fleet� High entry barriers (high unit price and

quality operation and safety requirements)� Good opportunity for value creation� Bergesen has ordered 2 LNG carriers

Crude oil transportation

IMO effect on Bergesen’s tanker fleet

Year Age categori2003 1973 or earlier2004 1974 and 19752005 1976 and 19772006 1978, 1979 and 19802007 1981 and later

No.

01523

Resulting age

-29 years28/29 years26/27 years

21/24/26 years

• Limited effect for Bergesen untill 2005 –substantial cashflow expected from 1970/80-builtVLCCs the coming years.

• In a “normal” tanker market the above vesselsbeing phased out, would have been scrappedanyway.

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Berge Odel

Berge Helene

Berge Chief

Berge Borg

Berge Boss

Berge Bragd

Berge Inger id

Berge Banker

Berge Pioneer

Berge Enterprise

Berge Nisa

Berge Phoenix

Berge Fjord

Berge Sigval

Berge Stavanger

Berge Stadt

Berge Ichiban

Berge Tokyo

Berge Fuji

Berge Ariake

Berge Sakura

Hitachi 4971

Hitachi 4972

Scrapping at 25 years Scrapping at 27,5 years

Lay-up in preparation for FPSO conversion

Bergesen’s tanker fleet

• Substantial fleet renewal has taken place:

Only 4 VLCCs and 1 O/Owill have earlier phase-out with new IMO regulations. Berge Phoenix will continue

in dry bulk trade

Bergesen’s charter cover

Period Rate StructureBerge Pioneer 06/01 M FCBerge Enterprise 02/02 FE -Berge Stadt 02/02 M PFBerge Stavanger 01/01+1+1 M FCBerge Sigval 09/03+1+1+1 FE -Berge Tokyo 01/02 M PFBerge Ichiban 02/02 M PFBerge Helene 03/01 F -Berge Fuji 07/02+1+1 FE -

Rate StructureM = Market related rate P = Profit splitF = Fixed rate F = FloorE = Escalation clause C = Ceiling

• 62% spot exposure (including newbuildings)• The rest on flexible charters:

Market outlook

• High tanker fleet utilisation• Fleet growth may be higher than

demand growth during 2001 and 2002• The Erika effect is strong• Consolidation effects?• Still low oil product stocks• IMO effect as of 20032001: average spot earnings estimated around samelevels as 20002002: possibly somewhat weaker than 2001, but stillstrong tanker earnings2003: stronger market due to new IMO regulations

Bergesen Offshore

The low cost operator in benign waters

Why West Africa ?

� Enormousreserves

� Low cost region

� Benign waters

How are we different?2. Project Execution D

river

Low High

Harsh

Benign

3. Cost

1. E

nvir

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ent

Asia & Australia

South America

NorthSea

Gulf of Mexico

Persian Gulf

Purpose-built,EngineeringDriven

Conversion,Shiprepair &ConversionDriven

Berg

esen

Offs

hore

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4. FPSO Contractors

West Africa

Competitive edge

� Large fleet of tankers and gas carriersat hand

� Well experienced offshore managmentteam

� Cost-effective solutions -not engineering driven

� In-house technical and commercialexpertise

� Competitive agreement in place withABB Offshore Systems AS

� The first generic FPSO is producing (ontime - at cost) !

Summary

� More focused strategy� Focus on shareholders value� Improved return on capital employed

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Return on Capital EmployedWeighted Average Cost of Capital

Summary

� More focused strategy� Focus on shareholders value� Improved return on capital employed� Strong tanker market the next 2-3 years� LPG exports likely to increase from 2002� Interesting opportunities in naphatha

trade for VLGCs� Competitive edge in West Africa� Growth opportunites in LNG� Still high discount to net asset values

Shareprice vs. NAV

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Bergesen A (average) Net asset value (year end)

Still high discount to NAV

Aksjekurs, A: 212 Aksjekurs, B: 200 Veiet kurs (A og B ): 208,6 USD/NOK: 9,07 ,Meglerhus Anbefaling ���� Dato siste analyse Kursmål, 6-12m Implisitt P/E 2002e EBIT 2001e EPS 2001e EBIT 2002e EPS 2002eAlfred Berg Ingen analy ser etter at Ax el Andersen gikk ov er til DnBs c orporate avdeling - Henrik With v il ta over

Carnegie Accumulate � 21-mai-01 185 10,2 267 3,0 196 2,0Nordea Sec. Buy � 16-mai-01 250 8,6 261 3,4 226 3,2DnB Markets Hold � 10-apr-01 183 2,2 145 1,2Fearnley Fonds Buy � 10-apr-01 200 4,8 380 5,1 345 4,6First Securities Reduce � 18-mai-01 160 7,9 201 2,5 152 2,2Fondsfinans Hold � 16-mai-01 200 6,9 261 3,4 255 3,2Orkla Enskilda 1/Buy � 21-mai-01 250 8,4 232 2,91 246 3,3Pareto Strong buy � 18-mai-01 270 6,7 296 4,0 305 4,4UBS Warburg Long-term Buy Ny 01-mai-01 218 6,7 255 3,8 246 3,6Gjennomsnitt Buy � 217 7,7 260 3,4 235 3,1

Broker recommendations

Share price targets and estimates before 2001Q1 figures were released: