Pareto - Shipping Market Outlook

Shipping market outlook 2013-16
Cefor Presentation at Grand Hotel

March 2013
Please refer to important disclosures at the end of this document
Market research

Nicolai Hansteen
Direct: +47 2287 8817
Email: nicolai.hansteen@pareto.no
Equity research

Jonas Advocaat Kraft
Direct: +47 2413 2188
Email: jonas.kraft@paretosec.com
Equity research

Eirik Haavaldsen
Direct: +47 2413 2120
Email: eha@paretosec.com
2
Status quo is depressing for most segments
Source: Pareto Research, Marsoft
Utilization is the key indicator for shipping returns
75% 100%
Depression
Euphoria..
80% 85% 90% 95%
Container
Tanker
Bulker
LNG
D
a
y
r
a
t
e
s

Fleet utilization
D
a
y
r
a
t
e
s

Improving
3
Table of contents
1. Dry bulk
2. Product tankers
3. Crude tankers
4. LNG

4
Smaller dry bulkers outperform larger due to versatility
Source: Pareto Securities, Marsoft, Clarksons Research Services
Capesize spot rates Panamax spot rates
Supramax spot rates Handysize spot rates
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
Jan Feb Mar Apr May June Jul Aug Sept Oct Nov Dec
5 Yr Avg 2012 2013 Current
USD/d
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
USD/d
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
USD/d
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
USD/d
5
Dry bulk market balance to turn positive during 2013
DWT supply growth vs DWT demand growth
We estimate the dry bulk market
balance to turn positive in 2013 with net
supply growth at 7%, below DWT
demand growth of 8%
Source: Pareto Securities, Marsoft
5.3%
3.8%
13.4%
11.3%
10.0%
7.7%
6.0%
4.4%
7.1% 7.1%
14.9%
15.2%
12.9%
6.7%
2.6%
2.1%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
2008 2009 2010 2011 2012e 2013e 2014e 2015e
Demand growth, DWT Supply growth, DWT
y/y growth
6
which should lead to higher market utilization
We forecast utilization to improve
in 2013 and onwards, yet stay
below the 10-year avg of 93%
Rates should stay below pre-
financial crisis levels, but slowly
increase from the lows in 2012

Dry bulk fleet utilization
Source: Pareto Securities, Marsoft
Base case USD/d
Cape (170' dwt) "
Pmax (74' dwt) "
Hmax (51' dwt) "
Hsi ze (27' dwt) "
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013e 2014e 2015e 2000-2011 avg
21,000 13,000 12,000 41,000 69,000 50,000 45,000 117,000 105,000 42,000 33,000 16,000 8,000 12,000 19,000 28,000 47,000
11,000 9,000 8,000 20,000 36,000 25,000 24,000 57,000 49,000 19,000 25,000 14,000 8,000 9,000 16,000 20,000 25,000
11,000 9,000 9,000 16,000 31,000 24,000 23,000 48,000 41,000 17,000 22,000 14,000 10,000 10,000 15,000 18,000 22,000
7,000 6,000 7,000 11,000 19,000 17,000 14,000 30,000 29,000 11,000 16,000 11,000 8,000 8,000 11,000 13,000 15,000
95%
96%
95%
95.2%
97.3%
95.6%
92.7%
91.5%
88.4%
86.2%
87.0%
89.9%
91.9%
0
20,000
40,000
60,000
80,000
100,000
120,000
80%
82%
84%
86%
88%
90%
92%
94%
96%
98%
100%
2003 2005 2007 2009 2011 2013e 2015e
Avg capesize rates (rhs) Utilization (lhs)
Utilization % USD/d
7
Steel mills ramping up production for fiscal stimulus package
Growth in global steel production is centered on China
Source: Marsoft/Pareto
China est. 2013 2014 2015 2016
GDP 8.2% 8.5% 9.1% 8.8%
Steel prod. 7.3% 7.5% 7.2% 7.1%
Best case 8.5% 8.7% 8.3% 8.1%
Low case 4.2% 4.4% 4.3% 4.1%
Growth in global steel production is
centered on China
Fiscal stimulus package of RMB 1
trillion, equivalent of USD 150 bn, is
being directed primarily at new
infrastructure projects
Steel mills are ramping up production
geared towards the construction
sector
0
200
400
600
800
1000
1200
1400
1600
Other Asia J apan Europe China
Million metric tonnes
8
Iron ore imports boosted by ramp-up in steel production
Chinas iron ore imports will reach 1bn tons by 15
Source: Marsoft/Pareto
Ramp-up in steel production boosting
iron ore intake
Chinas imports will exceed 800 mill. tons
in 13
Annualized imports of 1bn tons in Q4
2015

Chinas iron ore is becoming poorer in Fe
content. Average domestic iron ore
estimated to 16.5% in Fe grade
Consequently, Chinas import need is not
only about need for volumes, but also
about need for higher grade material to
offset its domestic low grade iron ore
Calling on Australia and Brazil
0
200
400
600
800
1000
1200
Brazil Australia India Other
Million metric tonnes
9
Newbuilds at historical troughs
Capesize newbuilding prices at
historical low adjusting for
inflation, given a NB price of
USD 46m
The calculation uses US
inflation rate. Inflation
adjusted levels probably
higher historically, given
above inflation growth rates in
steel plate and labour costs
Nominal and inflation adjusted capesize NB prices
Source: Pareto Securities, Clarksons Research Services
0
20
40
60
80
100
120
1986 1988 1990 1992 1994 1996 1997 1999 2001 2003 2005 2007 2009 2011
Nominal pri ces Inflation adj. prices
USDm
10
Table of contents
1. Dry bulk
2. Product tankers
3. Crude tankers
4. LNG

11
World oil production, demand and refinery capacity growth from
2012 to 2016
*Production growth excludes biofuels and OPEC NGLs
Source: IEA; Pareto
North America

-1
0
1
2
3
4
5
Prod Demand Refinery
Latin America

Europe

FSU

Asia

-1
0
1
2
3
4
5
-1
0
1
2
3
4
5
-1
0
1
2
3
4
5
-1
0
1
2
3
4
5
-1
0
1
2
3
4
5
-1
0
1
2
3
4
5
Africa

Middle East

12
The tanker market is changing in favor of product tankers
Source: DAmico Shipping
Tanker shipping evolution
Refining capacity building up closer to the oil reserves,
in particular in the Middle East
ME refining capacity is expected to grow with as much
as 1.2mbd over the next three years, and 1.9mbd per
day 2011-2017
Despite India and China also rapidly ramping up
capacity, we expect product trade from the Middle East
to Asia to grow rapidly going forward
In OECD countries, we see limited new refinery
expansion, and their relatively older refineries are also
less able to alter between different product types
All of this results in increased tonne-mile demand for
all types of product types:
Regional market imbalances (shortage in OECD..)
Arbitrage trading emerging
13
Second lowest orderbook in the shipping industry
Source: Pareto Securities, World Yards,
The total product tanker
orderbook is now at 9.5%

Nominal orderbook by segment in DWT
22.3% 22.2%
18.1%
11.8% 11.7%
9.5% 9.3%
7.9%
0%
5%
10%
15%
20%
25%
Container LNG Drybulk Crude LPG Product Ro-Ro Chemical
% of exi sting fleet
14
LR2 orderbook is low
Lowest nominal
orderbook in the LR2
segment: 3.9% of existing
fleet

Source: Pareto Securities, WorldYards
Product tanker nominal orderbook in dwt
3.9%
6.4%
16.5%
11.0%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
LR2 LR1 MR MR Chem/Prod
% of fleet
15
Demand growth exceeds supply growth
We reiterate our view
that the product tanker
market will tighten going
forward after four very
difficult years
Net supply growth of
3.7% forecasted for 2013,
below demand growth of
4.6%. The net market
balance tightens further
in 2014 and 2015

DWT supply/demand growth vs prod tankers avg earnings
Source: Pareto Securities, Clarksons
3.7%
3.2%
0.9%
4.6%
6.2% 6.1%
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
-5%
0%
5%
10%
15%
20%
2002 2004 2006 2008 2010 2012 2014E
Clean tankers avg earnings (rhs) Supply (lhs) Demand (lhs)
y/y change, % USD/d
16
Spot bombed out but shows signs of recovery
Source: Pareto Securities, Clarksons
YTD avg tanker earnings of
USD 18,500/d well above the
avg the past four years, but
below the 01-09 avg
2009-2012: USD 12.0k/d
2001-2009: USD 25.8k/d
1990-2012: USD 16.6k/d

Clean tanker average TCE earnings (all segments)
0
10,000
20,000
30,000
40,000
50,000
60,000
1990 1991 1993 1995 1997 1999 2001 2002 2004 2006 2008 2010 2012
USD/d
17
Volatility implies a tighter market
MR rates on the benchmark Cont-USAC leg (TC2) has avg USD 18k/d YTD
Rate spikes in the Atlantic MR market indicate that capacity utilization should be in the high 80s level

Source: Pareto Securities, Imarex, Bloomberg, Clarksons Research Services
MR spot rates
-5,000
0
5,000
10,000
15,000
20,000
25,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
USD/d
2012 2013 FFA 2013 FFA 2014
MR rates Cont-UK/USAC (TC2) and current FFA
0
7,500
15,000
22,500
30,000
2003 2005 2007 2009 2011 2013e 2015e
USD/d
Spot 10yr average
Spot USD/d 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013e 2014e 2015e
LR2 " 31,000 40,000 41,000 32,000 26,000 43,000 17,000 15,000 10,000 12,000 16,000 21,000 27,000
LR1 " 25,000 32,000 34,000 28,000 27,000 37,000 14,000 14,000 8,000 12,000 16,000 19,000 23,000
MR " 18,000 24,000 25,000 22,000 21,000 21,000 8,000 8,000 8,000 7,000 15,000 17,000 20,000
18
Nominal newbuild prices at inflation adjusted trough levels
Nominal and inflation adjusted MR NB values
Source: Pareto, Clarksons Research Services, Bloomberg
MR newbuilding prices at the lowest
level since beginning of 1987 adjusting
for inflation, given a NB price of USD
33m
With spot rates back to 04-08 levels,
this implies an EBITDA payback of 5-6x
0
10
20
30
40
50
60
70
80
90
1976 1978 1980 1983 1985 1987 1990 1992 1994 1997 1999 2001 2004 2006 2008 2011
Nominal prices Inflation adj prices
USDm
19
Fuel efficient designs indicate downside in resale values
MR values and NPV of fuel savings over the lifetime of the asset
Source: Pareto Securities
The NPV of the fuel savings of a
MR which burns 20% less fuel is
USD 9m over the lifetime of the
vessel (USD 4,600/d)
This indicates further downside in
resale values, given that resales
are trading on oar with current
broker quotes
FRNT 2012 estimate the cost
efficiencies of new generation
eco-design MR to be USD
6,000/d, which implies a NPV of
12m over the lifetime of the
vessel
Assumptions:
WACC 10%, 25 years lifetime, standard consumption 35 tons/d, bunker price IFO 380 cst at USD 650/t, 20%
savings fuel efficient design, 205 effective fuel consumption days (65% of days at sea, 55% of seatime in laden
condition, 70% of consumption in ballast versus laden condition)
33
9
24
33
0
5
10
15
20
25
30
35
MR NB cost current NPV bunker savings MR implied value
resale
MR resale current
quote
USDm
-26%
20
Table of contents
1. Dry bulk
2. Product tankers
3. Crude tankers
4. LNG

21
Crude tanker supply/demand balance
Source: Pareto, Marsoft
We forecast the crude tanker
market will remain difficult
through 2013 and 2014
Demand growth stable around
2.5%
Recovery likely to be slow
In the supply growth figures we
here assume just below 10m
dwt of crude tanker capacity
scrapped:
5.9m dwt VLCC (19 vessels)
2.4m dwt Suez (15 vessels)
1.3m dwt Afra (12 vessels)
It will be a difficult 2013, but hopes for recovery in 2014
5.2%
2.3%
6.5%
3.9%
7.7%
5.3%
4.1%
2.3%
-1.5% 0.8%
-1.9%
-5.5%
5.0%
4.4%
5.6%
2.1%
2.3%
2.6%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
2007 2008 2009 2010 2011 2012 2013E 2014E 2015E
Net supply growth Demand growth
22
2013 becoming the worst year ever?
Source: Pareto, Clarksons, PF Basse
2013 starting off as the
worst year in history
Average YTD for VLCCs is
~7k
February-March seeing
an average of ~2.8k
VLCC average spot rates
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
USD/d
23
2013 becoming the worst year ever?
2013 starting off as the
worst year in history
Average YTD for VLCCs is
~7k
February-March seeing
an average of ~2.8k
VLCC average spot rates in Q1
22,141
69,435
90,459
87,393
85,357
47,635
129,456
56,441
54,704
23,086
21,330
7,203
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
24
Somewhat better for suezmaxes
Driven by some higher
Black Sea Med. activity
Suezmax rates improved
somewhat last month
Still, levels below 2012
Suezmax average spot rates
0
10,000
20,000
30,000
40,000
50,000
60,000
USD/d
25
VLCC fixture activity picked up last week
Total VLCC spot fixtures
Source: Pareto, Clarksons
51 fixtures last week,
compared with 4W
average of 37
Positive trend, after a
very slow start
Spike actually driven
by AG-West rather
than East

10
15
20
25
30
35
40
45
50
55
Vessels
26
Yet, vessel availability remains at unusually high levels
VLCC availability MEG next four weeks
94 vessels expected to
the MEG over the next
four weeks

10
20
30
40
50
60
70
80
90
100
110
120
130
Vessels
27
No matter what, 2013 will be weak!
Current fleet vs. orderbook for VLCCs
642
56
23
0
100
200
300
400
500
600
700
Current fleet 2013 deliveries 2014 deliveries
# of VLCCs
~9%
~4%
28
No scrapping so far in 2013
VLCC and Suezmax scrapping: Q1 09-13
Source: Wordlyards
Not a single VLCC or
suezmax scrapped so far
in 2013
One reason could be
that listed players do
not want to take huge
write-downs
1
10
1
6
0
1
5
2
8
0 0
2
4
6
8
10
12
14
16
Q1'09 Q1'10 Q1'11 Q1'12 Q1'13
# of vessels
Suezmax
VLCC
29
Table of contents
1. Dry bulk
2. Product tankers
3. Crude tankers
4. LNG

100
110
120
130
140
150
160
0
2
4
6
8
10
12
14
Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13
Spot rate $'/day $/btu spread JPN-EUR
Gas price spread JPN-EUR LNG spot rates
30
LNG spot rates coming further down
Source: Pareto Securities, Factset, Fearnley LNG
LNG spot rates vs. Euro-JPN gas price spread
Spot rates now reported
below USD 110/day
Warmer weather in Asia has
also reduced demand for
LNG there, resulting in falling
natural gas prices

31
Because of lack of LNG supply
Source: Pareto Securities, Bloomberg
Growth in LNG supply (bcm)
Global LNG supply fell in
2012, after a few years of
rapid growth
This is due to delays in
project start-ups, but also
significant production issues
in many existing plants

-5%
0%
5%
10%
15%
20%
25%
2009 2010 2011 2012 2013e 2014e 2015e 2016e
LNG supply growth y/y
32
Uncommitted newbuilds starting to arrive later this year
Delivery schedule LNG carriers
Current orderbook ~24% of existing
fleet, with most of this arriving in
2014
~44% of vessels under construction
do not have contracts at this point
20 vessels arriving in 2014 without
contracts secured at this point

2
5
6
3
5
6
5
3
0
1 1
0
1 1
7
5 3
6
3
3
5
5
2
1
4
0
2
4
6
8
10
12
Q1'13 Q3'13 Q1'14 Q3'14 Q1'15 Q3'15 Q1'16 Q3'16
# of units
Contracted Available
33
And the market balance is uncertain going forward
Growth in LNG supply (bcm)
Supply growth in terms of
LNG vessels) is outgrowing
demand growth in 2013-
2015
87 vessels in the orderbook
between now and 2017,
with 37 of them being
without contract
Seven of those arriving this
year, 20 in 2014 and eight in
2015

0.1%
0.4%
2.4%
4.0%
3.3%
4.5%
3.6%
2.0%
2.7%
7.3%
7.1%
3.7%
0.9%
0.0%
-3%
-1%
1%
3%
5%
7%
9%
2012e 2013e 2014e 2015e 2016e 2017e 2018e
Growth y/y
Demand Supply (Fleet orderbook, ex. options)
34
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36

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information between certain business areas and sub-business areas within the Pareto Securities Group, where conflicts of interest may arise and to safeguard the impartialness of the employees. For example, the Corporate
Finance departments and certain other departments included in the Pareto Securities Group are surrounded by arrangements, so-called Chinese Walls, to restrict the flows of sensitive information from such departments.
The internal guidelines also include, without limitation, rules aimed at securing the impartialness of, e.g., analysts working in the Pareto Securities Research departments, restrictions with regard to the remuneration paid to
such analysts, requirements with respect to the independence of analysts from other departments within the Pareto Securities Group rules concerning contacts with covered companies and rules concerning personal
account trading carried out by analysts.

Distribution restriction
The securities referred to in this publication or report may not be eligible for sale in some jurisdictions and persons into whose possession this document comes should inform themselves about and observe any such
restrictions. This publication or report is not intended for and must not be distributed to private customers in Great Britain or the US.

This research report is only intended for and may only be distributed to institutional investors in the United States and U.S. entities seeking more information about any of the issuers or securities discussed in this report
should contact Auerbach Grayson & Company at 25 West 45th Street New York, NY 10036 Tel. 1 212-453-3549 or Pareto Securities Inc. at 150 East 52nd Street, New York, NY 10022, Tel. 212 829 4200.

Auerbach Grayson & Company is a broker-dealer registered with the U.S. Securities and Exchange Commission and is a member of the FINRA & SIPC. Investment products provided by or through Auerbach Grayson &
Company or Pareto Securities Research are not FDIC insured may lose value and are not guaranteed by Auerbach Grayson & Company or Pareto Securities Research. Investing in non-U.S. securities may entail certain risks.
This document does not constitute or form part of any offer for sale or subscription, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. The securities of
non-U.S. issuers may not be registered with or subject to SEC reporting and other requirements. The information available about non-U.S. companies may be limited, and non-U.S. companies are generally not subject to the
same uniform auditing and reporting standards as U.S. companies. Fluctuations in the values of national currencies, as well as the potential for governmental restrictions on currency movements, can significantly erode
principal and investment returns. Market rules, conventions and practices may differ from U.S. markets, adding to transaction costs or causing delays in the purchase or sale of securities. Securities of some non-U.S.
companies may not be as liquid as securities of comparable U.S. companies. Auerbach Grayson & Company and/or Pareto Securities Research may have material conflicts of interest related to the production or distribution
of this research report which, with regard to Pareto Securities Research, are disclosed herein.

Pareto Securities Inc. is a broker-dealer registered with the U.S. Securities and Exchange Commission and is a member of FINRA & SIPC. U.S. To the extent required by applicable U.S. laws and regulations, Pareto Securities
Inc. accepts responsibility for the contents of this publication. Investment products provided by or through Pareto Securities Inc. or Pareto Securities Research are not FDIC insured, may lose value and are not guaranteed by
Pareto Securities Inc. or Pareto Securities Research. Investing in non-U.S. securities may entail certain risks. This document does not constitute or form part of any offer for sale or subscription, nor shall it or any part of it
form the basis of or be relied on in connection with any contract or commitment whatsoever. The securities of non-U.S. issuers may not be registered with or subject to SEC reporting and other requirements. The
information available about non-U.S. companies may be limited, and non-U.S. companies are generally not subject to the same uniform auditing and reporting standards as U.S. companies. Market rules, conventions and
practices may differ from U.S. markets, adding to transaction costs or causing delays in the purchase or sale of securities. Securities of some non-U.S. companies may not be as liquid as securities of comparable U.S.
companies.

37

Distribution in Singapore
Pareto Securities Asia Pte Ltd (Pareto Securities Asia) is an exempt financial advisor under the Singapore Financial Advisers Act and a subsidiary of Pareto Securities AS in Singapore.

This report is directed only to "accredited investors", "expert investors" and "institutional investors" as defined in the Singapore Securities and Futures Act. This report is intended for general circulation amongst such
investors and does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should seek advice from a financial adviser regarding the suitability of any
product referred to in this report, taking into account your specific financial objectives, financial situation or particular needs before making a commitment to purchase any such product. Please contact Pareto Securities
Asia, 16 Collyer Quay, # 27-02 Hitachi Tower, Singapore 049318, at +65 6408 9800 in respect of any matters arising from or in connection with this report.

Copyright
This publication or report may not be mechanically duplicated, photocopied or otherwise reproduced, in full or in part, under applicable copyright laws. Any infringement of Pareto Securities Researchs copyright can be
pursued legally whereby the infringer will be held liable for any and all losses and expenses incurred by the infringement.
38

Appendix B
Disclosure requirements pursuant to the Norwegian Securities Trading ST Regulation 3-11, letters d-f, ref the Securities
Trading Act Section 3-10
Overview over issuers of financial instruments where Pareto Securities AS have prepared or distributed investment
recommendation, where Pareto Securities AS have been lead manager/co-lead manager or have rendered publicly known
not immaterial investment banking services over the previous 12 months:
Appendix C
Disclosure requirements pursuant to the Norwegian Securities Trading ST Regulation 3-11 (4)
Column I shows the overall ratio of Buy, Hold and Sell in Paretos Recommendations in financial instruments.
Column II shows the ratio of Buy, Hold and Sell in Paretos Recommendations in financial instruments where Pareto
Have provided investment banking services to the issuer the previous 12 months.
Appendix A
Disclosure requirements pursuant to the Norwegian Securities Trading Regulations section 3-10 (2) and section 3-11 (1), letters
a-b
Pareto Securities AS does not alone or - together with affiliated companies or persons owns a portion of the shares exceeding
5 % of the total share capital in any company where a recommendation has been produced or distributed by Pareto Securities
AS.
Pareto Securities AS or its affiliates own as determined in accordance with Section 13(d) of the Exchange Act, 1 % or more of the
equity securities of Equinox Offshore Accommodation Ltd.
Pareto Securities AS may hold financial instruments in companies where a recommendation has been produced or distributed by
Pareto Securities AS in connection with rendering investment services, including Market Making.
Please find below an overview of material interests in shares held by employees in Pareto Securities AS, in companies where a
recommendation has been produced or distributed by Pareto Securities AS.
By material interest is meant holdings exceeding a value of NOK 50 000.
Column I Column II
Buy 66.1% 85.70%
Hold 25.4% 11.40%
Sell 8.5% 2.90%
This overview is updated quarterly (last updated 15.01.2013).
Company
Analyst
holdings
Total
holdings
Company
Analyst
holdings
Total
holdings
Archer - 17 500 Olav Thon Eiendomsselskap - 920
Bonheur - 15 800 Orkla - 22 564
BW Offshore - 61 686 Petroleum Geo-Services - 2 700
BWG Homes 14 300 14 300 Prosafe - 1 405
Cermaq - 3 000 Protector Forsikring - 499 000
Discovery Offshore - 12 000 Questerre Energy - 67 000
DNB - 48 227 Renewable Energy Corp - 52 256
DNO International - 20 400 S.D. Standard Drilling - 100 000
DOF - 100 000 SalMar - 58 400
EOC Limited - 25 000 Sandnes Sparebank - 5 617
Farstad Shipping - 21 700 Seadrill - 5 500
Fred Olsen Energy 100 300 Selvaag Bolig - 50 000
Gjensidige Forsikring - 48 528 Ship Finance Ltd - 3 184
Golden Ocean Group - 50 200 Solstad Offshore - 4 100
Havila Shipping - 3 650 Sparebank 1 Nord-Norge - 20 637
Hegh LNG - 7 263 Sparebank 1 SR-Bank - 143 117
Itera 40 000 41 000 Sparebanken st - 22 349
Kongsberg Gruppen - 59 700 Statoil - 8 742
Lery Seafood Group - 20 700 Storebrand - 2 263
Marine Harvest Group - 20 000 Subsea 7 - 76 471
Morpol - 18 000 Telenor - 7 800
Noreco - 75 000 TGS-NOPEC - 7 450
Norsk Hydro - 286 308 Veidekke - 42 400
Northland Resources - 467 000 Wilh. Wilhelmsen Holding A - 404
Odfjell - 7 300 Yara International - 30 519
Thi s overvi ew i s updated monthl y (l ast updated 31.12.2013)
- Aker - Havila Shipping - Protector Forsikring
- Aker Floating Production - Hercules Offshore - Rocksource
- Austevoll Seafood - Houston American Energy Corp - Saga Tankers
- BassDrill - Hegh LNG - SalMar
- Bergen Group - Idex - Scana Industrier
- Berner Gruppen - Interoil - Scandinavian Insurance Group
- BNBank - Kistefos - Seadrill
- BW Offshore - KrisEnergy - Selvaag Bolig
- Clearwater - Mecom Group - Siemens
- Concedo - Morpol - Sigma Drilling
- DDI - Neptune Offshore - SinOceanic Shipping
- Det Norske Oljeselskap - Noreco - Solr Bioenergi
- DNB - Norse Energy Corp - Songa Offshore
- Dockwise - North Atlantic Drilling - Sparebank 1 SR Bank
- DOF - North Energy - Sparebanken Mre
- Dolphin Group - Northern Offshore - Sparebanken st
- EMS Seven Seas - Northland Resources - Teekay
- Equinox - Ocean Yield - Teekay LNG
- Expro Intl Group - Oceanteam Shipping - Tizir
- Floatel - OSX - Troll
- GasLog - Pacific Drilling - TTS Group
- Global Investment Group - Panoro Energy - Wilh. Wilhelmsen
- Grieg Seafood - Prosafe - Xtreme Drilling and Coil Services
- Haikui - Prospector Offshore Drilling - Protector Forsikring
- Rocksource
This overview is updated monthly (this overview is for the period 31.12.2011 31.12.2012).
39

Appendix D
This section applies to research reports prepared by Pareto hman AB.
Disclosure of positions in financial instruments
The beneficial holding of the Pareto Group is 1 % or more of the total share capital of the following companies included in Pareto hman ABs research coverage universe: Isconova.
The Pareto Group has material holdings of other financial instruments than shares issued by the following companies included in Pareto hman ABs research coverage universe: RusForest.
Disclosure of assignments and mandates
Overview over issuers of financial instruments where Pareto hman has prepared or distributed investment recommendation, where Pareto hman AB has been lead manager or co-lead
manager or has rendered publicly known not immaterial investment banking services over the previous twelve months:
Africa Oil Isconova ShaMaran Petroleum
Alpcot Agro Klvern Sagax
Blackpearl Resources Lucara Diamond Tethys Oil
Black Earth Farming RusForest Vostok Nafta
Members of the Pareto Group provide market making or other liquidity providing services to the following companies included in Pareto hman ABs research coverage universe:
Africa Oil Isconova Tethys Oil
Blackperal Resources ShaMaran Petroleum Trigon Agri
Lucara Diamond
Members of the Pareto Group have entered into agreements concerning the inclusion of the company in question in Pareto hman ABs research coverage universe with the following companies:
Africa Oil, Isconova, Shamaran Petroleum.
This overview is updated monthly

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