Highlights 2009

FINANCIAL PERFORMANCE
Gross Revenue of USD 1,264 million
EBITDA of USD 182 million
EBIT of USD 61 million
Retroactive tax income USD 110 million
Net result of USD 121 million
Cash flow of USD 175 million
Compensation USD 43 million

MACRO VARIABLES
The financial crises spoiled 2009 and denied growth in most industries. Towards the end of the year most markets suggest the bottom is behind us and that growth has resumed. This optimism is reflected by a rise of commodity prices, some shipping rates and other key indicators. The recovery seems fragile and major events may delay a sustainable economic growth.

Most major banks again report positive earnings, and liquidity has started to return to the markets.

Whilst prospects remain uncertain, our markets may improve towards the end of 2010.

ASSET DEVELOPMENT
Bare-boat charter with National Chemical Carriers (NCC) of MT NCC Jubail (37,499 DWT/1996), MT NCC Mekka (37,272 DWT/1995) and MT NCC Riyad (37,274 DWT/1995), all stainless steel, for 10 years with purchase option.

Time charter for MT Bow Baha (24,728 DWT/1988), MT Bow Asir (23,001 DWT/1982) and MT Bow Arar (23,002 DWT/1982).

The time charter agreement of MT Bow Arar and Bow Asir were later cancelled and replaced by sale and short-term charter back of MT Bow Hunter (23,002 DWT/1983) and MT Bow Pioneer (23,016 DWT/1982). Acquisition of MT Bow Victor (33,190 DWT/1986), sister vessel to MT Bow Viking.

In June 2009, Odfjell signed a 50/50 joint venture agreement with NCC to establish NCC-Odfjell in Dubai. The company is set up to commercially operate our respective fleets of coated (IMO 2/3) chemical tankers of 40,000 DWT and above. Start-up early 2010 with 15 vessels and a total capacity of nearly 660,000 DWT. Plans to grow to 31 vessels and a total DWT of nearly 1.4 millions over the next three years.

Termination of Odfjell Ahrenkiel Europe and relocation of the pool management to Odfjell Bergen, Norway.

SHAREHOLDER ISSUES
At year-end 2009 the Odfjell A-shares traded at NOK 52.00 (USD 9.03) up 19,5% compared to 43.50 (USD 6.22), a year earlier. The B-shares traded at NOK 50.00 (USD 8.69) up 11,1%, compared to 45.00 (USD 6.43) a year earlier. A dividend of NOK 1.00 per share was paid in May 2009. Adjusted for this dividend, the A- and Bshares had positive yields of 21.8% and 13.3% respectively. By way of comparison, the Oslo Stock Exchange benchmark index increased by 64.8%, the marine index increased by 25.5% and the transportation increased by 30.1% during the year.

The market capitalisation of Odfjell was NOK 4.5 billion (USD 776 million) per 31.12. 2009.

On 2 March 2009, Odfjell terminated its Total Return Swap (TRS) agreement with DnB NOR Markets for 819,500 Odfjell A-shares. Simultaneously all shares were acquired by Odfjell SE at a price of NOK 36.00. On October 14, 2009, Odfjell terminated its TRS agreement with DnB NOR Markets for 1,679,500 Odfjell A-shares and 2,322,482 Odfjell B-shares, which was originally due on 10 November 2009. Simultaneously all shares were acquired by Odfjell SE at a price of NOK 51.00 for the A-shares and NOK 45.00 for the B-shares.