STAR Reefers
Preliminary Results 2004
3rd March 2005
Recent Reefer Industry Developments
Market growth expected to exceed 3% p.a.
Spot rates for larger ships up 27% in 2004
Fruit majors looking for longer contracts
Operators entering medium term charters
Aggressive competition amongst operators
Container lines remain focussed on dry cargo
Competition for quality 2nd hand ships
Scrapping of 25 vessels or 6 million cbft in 2004
Mature fleet with only 4 newbuilding orders placed in 2004
Star well positioned to take advantage of this period of change
Preliminary 2005
Larger Vessel Rates in 2004
Timecharter spot rates for larger vessels
120
Source: Orion Shipping AS, Oslo
100
80
2001
2002
60
2004
USC / CBFT
2003
40
20
0
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEPT
OCT
NOV
DEC
Rates for larger vessels up 27% YoY in 2004
Preliminary 2005
Source: Orion Shipping
Smaller Vessel Rates in 2004
Rates for smaller vessels up 13% YoY in 2004
Preliminary 2005
Source: Orion Shipping
Are Rates Returning to 1997 Levels?
REEFER 12 MONTHS ESTIMATED EARNINGS
Size: 350-550.000 cbft vessel
85
80
75
65
60
55
50
45
40
35
Source: Orion Shipping AS, Oslo
---- Conventional type - "old / new "
20
05
20
04
20
03
20
02
20
01
20
00
19
99
19
98
19
97
19
96
19
95
19
94
19
93
19
92
19
91
19
90
19
89
19
88
19
87
19
86
30
19
85
US Cents per cbft
70
---- Modern high quality vessels
12 month rates up approx. 15% entering 2005
Preliminary 2005
Box Ships Busy Earning Good Money in Dry
Containers
6 – 12 month TC rates container ships (Source Carl Boch)
- text Preliminary 2005
Age Distribution of Reefer Fleet
(over 250 000 cbft)
REEFER FLEET - VESSEL EXCESS OF 250.000 CBFT (% IN CBFT)
Upto 5 years
2,98 %
>=30 years
3,74 %
26-30 years
10,15 %
6-10 years
13,62 %
21-25 years
18,74 %
11-15 years
31,58 %
16-20 years
19,18 %
Source: Orion Shipping AS, Oslo
236 mill. cbft. (548 ships) over 250 000 cbft
Preliminary 2005
Net Scrapping continues in a strong market...
8
7
6
5
Mill cbft 4
3
2
1
0
1999
2000
2001
2002
2003
'2004
...but most of it is the older ”frozen” vessels.
Source Orion Shipping
Preliminary 2005
Reefer capacity continues to decline...
REEFER VESSELS ORDERBOOK -VS- SCRAP
35
80
Source: Orion Shipping AS, Oslo
70
30
60
25
50
20
40
MILL CBFT
15
30
10
20
5
10
0
0
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
ON ORDER (CBFT)
SCRAP (CBFT)
ON ORDER (NO VSLS)
SCRAP (NO VSLS)
Only 4 orders placed in 2004
Preliminary 2005
NO VSLS
STAR Reefers Highlights 2004
Freight rates up some 17%
STAR fleet values up 35%
Sale of 2 ships generating profit of $ 4.8 million
Contract renewals 2005 at levels up 15+%
Equity infusion at NOK 83 per share
Strenghening balance sheet.
10 year Time Charters for 2 newbuildings
Acquisition of Regal Star
Preliminary 2005
Employment of Star Reefers Fleet 2004.
Time Charters
COA
Liner
Spot
Focus on Customer Relationships
Preliminary 2005
Star Reefers Revenue by Goods Carried 2004
Bananas
Decidious
Citrus
Other
Focus on bananas
Preliminary 2005
Time Charter for Two Newbuildings
Vessels to be built at Shikoku Yard in Japan
Delivery Q1 2006 and Q4 2006
Specialised Reefers of 585,000 cbft.
High Speed
High container intake
Low bunker consumption
10 year duration of charters
STAR Reefers is committed to the reefer market long term
Preliminary 2005
STAR Core Fleet
# of Ships
Capacity
Average
Average
(mill cbft.)
Age
Size
1 000 cbft.
Owned
17
8.4
15
493
6
3.2
13
540
Time Charter
13
7.2
11
555
Total Fleet
36
18.8
13
523
Bare Boat Charter
.
Preliminary 2005
Profit & Loss Account
31-Dec-04
.
31-Dec-03
Net operating revenues
$ 28.1 $ 24.4 $ 130.1 $ 112.3
Ships operating expenses
-13.2
-13.3
-44.1
-43.7
Time charter hire
-12.8
-8.4
-54.6
-41.9
Administrative expenses
-0.3
-1.3
-1.7
-3.7
EBITDAR
1.8
1.4
29.7
23.0
Bare boat charter hire
-2.3
-1.7
-9.3
-6.3
Depr. and amortization
-2.0
-2.8
-8.9
-9.4
Gain sale ships/subsidiary
0.2
4.6
5.2
6.1
Operating profit
-2.3
1.5
16.7
13.4
Interest expense
-1.0
-2.0
-4.4
-7.1
Other financial items
0.2
-1.2
0.1
-1.1
Net income
$ -3.1 $ -1.7 $ 12.4 $
5.2
EPS
$ -0.36 $ -0.22 $
Preliminary 2005
1.47 $
0.67
Balance Sheet
31-Dec-04
.
31-Dec-03
Vessels
Other fixed assets
Other current assets
Bank deposits
Total assets
$ 157.5
5.6
14.6
21.5
$ 199.2
$ 168.0
6.8
18.0
20.2
$ 213.0
Equity
Provisions
Interest-bearing debt
Short term liabilities
Total equity and liabilities
$
$ 60.5
0.2
130.1
22.2
$ 213.0
Equity ratio
Equity per share
Preliminary 2005
82.6
99.4
17.2
$ 199.2
41%
28%
$9.72
$7.91
Profit & Loss Account
2004
Net operating revenues
Ships operating expenses
Time charter hire
Provisions taken to income
Administrative expenses
.
EBITDAR
Bare boat charter hire
Depr. and amortization
Gain sale ships subsidiary
Operating profit
Interest expense
Other financial items
Net income
2003
$ 130.1 $ 112.3 $
-44.1
-43.7
-54.8
-43.6
0.2
1.7
-1.7
-3.7
29.7
23.0
-9.3
-6.3
-8.9
-9.4
5.2
6.1
16.7
13.4
-4.4
-7.1
0.1
-1.1
$ 12.4 $
5.2 $
Preliminary 2005
2002
2001
109.0 $ 85.5
-41.6
-35.9
-45.4
-29.3
4.0
7.1
-3.5
-3.5
22.5
23.9
-0.3
-11.0
-11.5
1.7
0.4
12.9
12.8
-7.8
-10.3
0.2
-0.5
5.3 $
2.0
Star Reefers Shareholders
February 2005
.
# of
% of
shares
shares
Siem Industries
KLP Forsikting
Dieselgården
Odin Maritim
Caiano Ship + Caiano AS
Enskilda Securities
Skips AS Tudor
First Nordic
Other sharehoders
6,252,534
184,200
155,000
152,500
146,400
132,500
121,000
117,500
1,238,185
73.6%
2.2%
1.8%
1.8%
1.7%
1.6%
1.4%
1.4%
14.6%
Total
8,499,819
100.0%
Preliminary 2005
Share Price Star Reefers 2004
Shareprice up 75% 12 months
Preliminary 2005