Oil & Tanker Trades Outlook

Transcription

1 Clarkson Research Services Oil & Tanker Trades Outlook Volume 2, No. 2 February-215 ISSN: Average Tanker Earnings Index 4, 35, $'/day Tanker Supply and Demand (215f) Crude Tanker Dwt Demand Growth 2.2% Crude Tanker Fleet Growth 1.2% Product Tanker Dwt Demand Growth 4.% Product Tanker Fleet Growth 5.8% 3, 25, 2, 15, 1, 5, Jan 9 Jan 1 Jan 11 CONTENTS Industry News p2 Market Outlook p3 VLCC Market p4-5 Suezmax Market p6-7 Aframax Market p8-9 Panamax Market p1-11 Seaborne Crude Imports p12 Seaborne Crude Exports p13 Crude Oil Transport Costs p14 Tanker Fleet & Orderbook pi-viii Financial & Economic Indicators p15 Sale & Purchase Market p16 Timecharter Market p17 Global Oil Supply p18 Refinery Capacity p19 Global Oil Demand p2 Oil Products Demand p21 Seaborne Products Imports p22 Seaborne Products Exports p23 Product Tanker Market p24-25 Tanker Safety & Oil Spills p26 Safety & Incident News p27 Tanker Outlook p28 Clarkson Research Services Limited (CRSL) is respected worldwide as the most authoritative provider of intelligence for global shipping. CRSL is part of the Clarksons group, the world's largest shipbroking and integrated shipping services provider. For more detail about the Clarksons group visit Jan 12 Jan 13 Jan 14 Jan 15 Los Angeles Tanker Market Indicators (Jan-15) VLCC Newbuild Price MR Newbuild Price Fujairah Jamnagar Bombay Singapore Jakarta Ningbo Seria Selection of major tanker ports Houston Kozmino Ulsan Philadelphia Kaohsiung Huizhou LOOP Quintero New York St Eustatius Curacao Bonaire Puerto La Cruz $96.5m $36.5m Chiba Sydney San Lorenzo Rio De Janeiro 1 Mongstad Sullom Voe Rotterdam Antwerp Fos Trieste Skikda Lome Bonny Offshore Augusta Primorsk Novorossiysk Agioi Theodoroi Sidi Kerir Mina Al Ahmadi Ras Tanura Ain Sukhna Yanbu Jamnagar Fujairah Jeddah Bombay Cap Limbe Dar Es Salaam VLCC Average 1 year TC MR Average 1 year TC Los Angeles Houston Philadelphia LOOP Singapore Jakarta Seria Selection of major tanker ports $46,6/day $15,25/day New York St Eustatius Curacao Bonaire Puerto La Cruz Quintero San Lorenzo Rio De Janeiro

2 Industry News In January, the price of Brent crude continued the trend of recent months, declining 23% m-o-m to an average of $49.1/bbl. However, in February, prices have recovered slightly, averaging just below $6/bbl. The marginal recovery in crude prices has thought to be have been partially driven by reports of large numbers of US drilling rigs being idled, suggesting US tight oil production growth may slow in the near future. Total oil demand is projected to increase 1.% y-o-y in 215, to stand at 92.8m bpd. In the US, the world s largest oil consumer, oil demand is expected to rise 1% y-o-y to 19.2m bpd. The low oil price, coupled with relatively robust economic growth, is expected to partially support this increase. However, the general OECD oil demand picture remains negative in 215, with a shaky economic recovery and increased energy efficiency in Europe and Japan continuing to depress oil demand. OECD Oil Demand (f) m bpd Source: CRSL f In spite of the recent decline in crude prices, global oil supply is projected to rise 1.7% y-o-y to 93.7m bpd in 215. Total Middle Eastern oil production is expected to increase 1% y-o-y to 28.m bpd, driven largely by increased output in Iraq and U.A.E. In U.A.E. oil production growth of around 5% is projected, largely supported by the ramp-up in production of the Umm-al Lulu field, which started in production in October 214. Meanwhile, Iraqi production growth is also expected to reach around 5%, driven by a ramp-up in production at several fields which came online in 214. In January, the Iraqi oil minister announced that Iraqi crude production reached a record 4m bpd in December, and indicated that the increase would help the country to compensate for the recent fall in oil prices. The Iraqi government expects to boost crude exports significantly in 215, partly supported by increased volumes from Kurdistan. Despite this aim, volumes exported from Iraq in January reportedly dropped by 14% m-o-m, with the decrease largely attributed to bad weather around the country s southern oil terminals during the month. Towards the start of February, seven refineries and two chemical plants in the US were affected by union strikes. Approximately 1% of US refinery capacity was initially affected by the largest union action in the sector since 198. Talks between the United Steelworkers Union and the refiners have been ongoing, although no resolution has yet been reached. By late February, the strikes had spread to around 15 petrochemical facilities, 12 of which are refineries which together account for around 2% of US refinery capacity. Many refiners have reportedly brought in non-union labour to enable the plants to continue operating, limiting the effect on overall production levels so far. Meanwhile, in February, the US Congress voted in favour of the construction of the Keystone XL pipeline. The proposed pipeline will have a capacity of.8m bpd, allowing crude oil from the tar sands producing region of Alberta to be transported to the US Gulf. However, President Obama has stated he will veto the bill, partly due to environmental concerns. It was announced in February that Chinese crude imports averaged 6.6m bpd in January 215. This equates to approximately 5.9m bpd of crude transported via sea during the month, compared to 5.6m bpd in full year 214. In 215, Chinese seaborne crude imports are projected to rise 7% y-o-y to stand at 6.1m bpd. Chinese Seaborne Crude Imports -15(f) 8 m bpd Source: CRSL Oil Price Trends & Forecast Average Price, $/bbl Jan-14 Jan-15 Brent Blend Short-Term EIA Average F'cast* Long-Term OPEC IEA Current Pol IEA New Pol IEA EIA Ref. Case EIA Low EIA High * Average level of forecasts reported in January 215. Clarkson Research Services Page 2 Feb f In February, it was announced that liquidators of Dynamic Oil Trading (DOT), owned by the bankrupt OW Bunker, are seeking to recover an estimated $329m in debt owed to the company. One of the most notable debts is that owed by Tankoil, who reportedly received $124m in credit from DOT. Overall, the company is owed an estimated $198m by more than 1 unsecured creditors. This follows news that liquidators had struck a deal to facilitate payment of bills owed by OW Bunker, mainly to creditors. Losses at DOT sparked the OW group to file for bankruptcy last year. In January there were several reported instances of owners switching bulkcarrier newbuilding orders for tanker orders. For example, Sincere Navigation switched an order for two Capesizes for one 319, dwt VLCC at Shanghai Waigaoqiao for delivery in 217. In the products tanker sector, Scorpio reportedly converted an order for two Capesizes to two 114,9 dwt LR2s at Daehan Shipbuilding, with delivery scheduled for early 216. A number of other similar discussions are reportedly underway, although yards are unlikely to accept such changes if construction or material procurement has already begun MR Deliveries Q1 -Q4 214 m dwt Source: CRSL Q1-11 Q3-11 Q1-12 Q3-12 Q1-13 Q3-13 Q1-14 Q3-14 In January, there were a total of 19 product tankers reportedly delivered, including 9 MRs of 45,-59,999 dwt. Scorpio took delivery of two MRs of 5,133 dwt and 5,145 dwt as well as a further two 38,734 dwt product carriers. Meanwhile, in the crude sector, four Suezmaxes between 152, dwt and 159,5 dwt were delivered during the month, including one shuttle tanker owned by Knutsen NYK.

3 Market Outlook Supply-Demand Dynamics: Crude Tankers 12% 1% 8% 6% 4% 2% % -2% -4% -6% Supply-Demand Dynamics: Product Tankers Crude Tanker Million Dwt The Tanker Market Outlook Demand % Change VLCC FIRM... 3.% Suezmax FIRM % Aframax STEADY % Panamax WEAKER -14% TOTAL STEADY % % Change y-o-y 1.1% 5.1% -3.%.4% 2.2% Demand derived from crude and DPP trade. Total includes Handysize dwt demand. Product Tanker Million Dwt Demand % Change 8-119,999 Dwt (LR2) FIRM % 6-79,999 Dwt (LR1) FIRM % 1-59,999 Dwt FIRM % TOTAL FIRM... 4.% % Change y-o-y 2.5% 1.7% 2.8% 2.% 4.% Includes demand derived from DPP, CPP and veg oil trade. Crude Fleet Million Dwt Growth % Change VLCC STEADY... 2.% Suezmax STEADY % Aframax STEADY % Panamax STEADY % TOTAL STEADY % % Change y-o-y -.2% 5.4% -.8% 1.5% 1.2% Product Fleet Million Dwt Growth % Change 8-119,999 Dwt (LR2) FIRMER % 6-79,999 Dwt (LR1) STEADY....3% 1-59,999 Dwt FIRM % TOTAL FIRM % % Change y-o-y 3.8% 1.9% 2.6% 3.9% 5.8% Tanker 26 Demand Growth Supply Growth Supply/Demand Outlook Million Dwt Balance Total Demand 1% 4% -1% 1% 3% STEADY e 215f 14% 12% 1% -2% -4% -6% Following a surge in interest in chartering VLCC tonnage to store crude oil in January, activity abated during February, partly reflecting higher timecharter rates. While earnings in the crude tanker spot markets have eased slightly over recent weeks, they remain at relatively elevated levels, with recent limited supply growth contributing to the tighter market environment. Overall, crude tanker fleet growth is expected to remain relatively slow in 215, at just 1.2%, with VLCC fleet growth projected to reach 2.%. However, crude tanker deliveries are expected to accelerate notably in 216. This is expected to lead to a faster pace of fleet expansion next year, of around 6% in the VLCC sector and 4% in the Suezmax sector. In the short-term, deadweight demand in the crude tanker sector is expected to increase moderately, with an increase of around 2% projected in 215. This pace of growth would represent the fastest expansion in three years, supported by strong Chinese and Indian crude import demand. In 215, product tanker deadweight demand is expected to increase by around 4%, the fastest pace of growth in several years, with growth partly supported by increased long-haul shipments in the larger vessel sectors. Products trade growth is also expected to be driven by rising imports into developing regions, particularly Latin America and Africa. Although overall demand growth is expected to improve compared to 214, supply pressures remain present. Overall product tanker fleet growth is accelerating, and is projected to reach 5.8% in 215, faster than projected growth in demand. This could lead to continued pressure on the sector, with expansion of 11% expected in the LR2 fleet, and 6% in the 1-59,999 dwt sector. Total Supply 1% 4% % 2% 3% STEADY... Note: Demand basis full year, fleet development basis end year. Product fleet definition as detailed on page 27. Clarkson Research Services Page 3 Feb-15 8% 6% 4% 2% % Demand Growth Supply Growth 214e 215f

4 VLCC Market Trends VLCC Market Commentary VLCC Spot Average WS Average WS VLCC Market Rates ^ Aug Sep Oct Nov Dec Jan This Month 28K Gulf - Europe FIRMER... 11% 27K Gulf - India FIRMER... 18% 265K Gulf - East STEADY... % 26K WAF - India^ SOFTER... -7% 26K WAF - US Gulf FIRM... 7% 26K WAF - East STEADY... 2% 27K UKC - US Gulf STEADY... 2% ^ Lump sum in million dollars VLCC US$,/day Jan-13 Mar-13 May-13 VLCC Market Earnings* ^ Aug Sep Oct Nov Dec Jan This Month Average Spot Earnings 16,217 27,315 65,579 24,835 14,974 28,634 46,216 6,821 65,579 FIRM... 8% Spot Earnings Index FIRM... 8% 1 Year T/C Rate (Modern)" 19,837 28,115 46,6 28,8 3, 31,1 32,125 36,5 46,6 FIRMER... 28% 3 Year T/C Rate (Modern)" 23,44 3,183 41,1 33, 34, 34, 34, 34,625 41,1 FIRMER... 19% VLCC Spot Jul-13 Sep-13 Nov-13 Jan-14 VLCC Average Spot Earnings (LHS) Mar-14 No. of Spot Fixtures (RHS) May-14 Jul-14 Sep-14 Average $/day No of Fixtures, Avg. Nov-14 Jan January VLCC average spot earnings increased by 8% m-o-m to $65,579/day. This represents the highest monthly average since October 28 and is over twice the annual average for 214, which stood at $27,315/day. Meanwhile, the average one year timecharter rate rose 28% m-o-m to $46,6/day, on the back of high levels of enquiry, especially regarding fixing tankers for oil storage, so as to take advantage of the contango in crude prices. Towards the start of January there was a relatively high level of activity in the MEG and as a consequence rates on several routes ex-meg were relatively firm. For example, the rate on the Gulf-India route averaged WS 13 during January. However, towards the end of the month, charterers managed to place downward pressure on rates as activity declined somewhat. Meanwhile, the West African market was generally subdued throughout January, creating difficult conditions for owners. The January average lumpsum rate on the WAF-India route decreased 7% m-o-m to $4.92m, as a result of weak market conditions. Meanwhile, the monthly average rate on the WAF-East route stood at WS 66. At the start of February it was expected that the number of unfixed VLCCs entering the MEG, WAF and the North Sea during the month would decrease slightly. Average $/day No of Fixtures VLCC Spot Demand Demand** ^ Aug Sep Oct Nov Dec Jan This Month Ex - Arabian Gulf FIRMER... 26% Ex - UK/Cont FIRMER... 2% Ex - West Africa SOFTER... -4% Others FIRMER... 4% Total Nos FIRMER... 22% Total m. dwt FIRMER... 18% VLCC Spot No of Vessels, Avg. VLCC Spot Outlook Supply ~ ^ Aug Sep Oct Nov Dec Jan Feb Trend Arabian Gulf West Africa North Sea ^ Year to date. * Average Earnings are calculated as described in 'SIW Sources and Methods', which can be found on SIN 21. ** Spot demand is the average number of fixtures per month. ~ Spot supply covers the number of unfixed vessels entering the load zone per month. "Timecharter rates basis estimated owners' rates. Clarkson Research Services Page 4 No of Vessels, start TIGHTER... TIGHTER... TIGHTER... Feb-15

5 VLCC Market Trends VLCC Balance % M. Bpd / M. Dwt Forecast Demand AG-Japan, China, Korea % AG-Other Asia/Pacific" % AG-N.America % WAF-Far East/India % Caribs-China/India % WAF-N America % Other % Total, m bpd # % Total, m dwt ~ # % % growth 5.% 7.5% -2.5% 2.4% 3.% ~Derived from crude trade above and DPP trade. "South East Asia + India. Supply* 2,-254,999 dwt # ,-319,999 dwt # , dwt & above # Total # % Combos in Oil # % Laid-up # % Long-term Storage # % Active Fleet # % % growth 2.1% 6.% -.6% 3.4% 2.% Balance Demand Growth 5% 8% -2% 2% 3% Supply Growth 2% 6% -1% 3% 2% Balance 3% 1% -2% -1% 1% Following a 2.4% y-o-y increase in 214, VLCC deadweight demand is projected to rise by around 3.% y-o-y in 215. This is partially supported by projected VLCC crude trade on the WAF-Far East/India routes rising by 9% to 1.8m bpd. Both China and India have strengthened trade relations with exporters in the region at a time when total WAF-US crude trade is diminishing. Meanwhile, crude VLCC trade on the Caribs-China/India routes is expected to increase 1% y-o-y to 1.4m bpd in 215. China has invested relatively heavily in the region through so-called loan for oil deals, which are expected to support overall Caribs-China crude trade. Meanwhile, Indian companies have developed closer ties with several producers, signing long-term export deals. This trend is expected to support VLCC crude trade on the relatively long-haul Caribs- India route rising 9% y-o-y in 215. At the end of January 214, the VLCC fleet stood at 635 vessels of a combined 195.2m dwt. The active VLCC fleet is projected to increase by around 2% during 215, with deliveries expected to total around 5.2m dwt, which would represent the lowest level in 17 years. However, following greater contracting levels in and 214, VLCC deliveries are projected to pick up significantly in 216 to 13.7m dwt. This is expected to lead to VLCC fleet growth accelerating in 216 to around 6% in terms of capacity, which would represent the fastest pace of expansion since. VLCC S&P Number & Value Number & Value 3 Month Oct Trend Market ^ Aug Sep Nov Dec Jan Newbuild Prices 32k newbuild ($m) WEAK... -1% No. of Contracts Placed WEAKER!! -17% Est. Investment Value ($bn) WEAKER!! -18% Secondhand Prices 31k 5yo ($m) FIRM... 4% 3k 1yo ($m) FIRMER... 7% 265k 15yo ($m) FIRMER... 6% No. of Sales WEAKER!! % 5 Year Old/NB Price Ratio 65% 62% 75% 84% 76% 76% 79% 79% 79% 84% FIRMER... 6% Demolition $/ldt WEAKER... -9% No. Scrapped WEAKER!!... -1% Est. Scrap Value ($m) WEAKER!!... -1% Fleet M. Dwt M. Dwt, month end Forecast* Profile ^ Aug Sep Oct Nov Dec Jan Fleet Total Deliveries Scrapping Contracting Orderbook *End of year figure. ^Year to date. Fleet totals in metric tonnes, net of est. conversions and misc. changes, accounting for historical and expected delivery performance. Clarkson Research Services Page 5 Feb-15

6 Suezmax Market Trends Suezmax Market US$,/day Jan-13 Suezmax Average Spot Earnings (LHS) No of Spot Fixtures (RHS) Mar-13 May-13 Jul-13 Commentary Suezmax Spot Average WS Average WS Suezmax Market Rates ^ Aug Sep Oct Nov Dec Jan This Month 13K WAF - USAC FIRM... 6% 13K WAF - Med FIRM... 7% 13K Med - Med FIRMER... 9% 14K Black Sea - Med STEADY... 3% 135K UKC - UKC STEADY... 3% 13K Caribs - US Gulf FIRMER... 16% 13K Gulf - Med STEADY... 1% Suezmax Average $/day Average $/day Suezmax Market Earnings* ^ Aug Sep Oct Nov Dec Jan This Month Average Spot Earnings 15,511 27,791 52,928 21,652 14,879 29,89 5,48 45,354 52,928 FIRMER... 17% 1 Year T/C Rate (Modern)" 16,14 22,712 32, 23,8 24,25 24,9 28,25 32, 32, STEADY... % 3 Year T/C Rate (Modern)" 18,96 24,413 3, 25,6 26, 26,8 29,5 3, 3, STEADY... % Suezmax Spot Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 No of Fixtures, Avg. Jan Suezmax average spot earnings increased 17% m-o-m to stand at $52,928/day in January, almost double the 214 annual average. Meanwhile, the monthly average one and three year Suezmax timecharter rates remained steady m-o-m at $32,/day and $3,/day respectively. These represent the highest monthly averages since August 21. In West Africa, January was generally an active month, although rates did not surge on the back of this. However, firm levels of VLCC timecharter activity did lend some support to the Suezmax market in the region towards the end of the month. The monthly average rate on the WAF-Med route stood at WS 94 in January whilst the rate on the WAF-USAC route stood at WS 93. In the European market, enquiry was generally more subdued than in WAF. However, towards the end of the month, high levels of enquiry in the Aframax market helped to support Suezmax rates in the Med, although this momentum could not be sustained. As a result, the monthly average rate on the cross-med route stood at WS 1 whilst the rate on the Black Sea-Med route averaged WS 12. At the start of February it was expected that the number of unfixed Suezmaxes entering WAF, the Mediterranean and the North Sea during the month would decrease. No of Fixtures Suezmax Spot Demand Demand** ^ Aug Sep Oct Nov Dec Jan This Month Ex-West Africa STEADY... 1% Ex-Mediterranean FIRM... 7% Ex-North Sea WEAKER!! -75% Ex-Black Sea SOFTER... -8% Others FIRMER... 8% Total Nos STEADY... 3% Total m. dwt FIRM... 4% Suezmax Spot No of Vessels, Avg. No of Vessels, start Suezmax Spot Outlook Supply ~ ^ Aug Sep Oct Nov Dec Jan Feb Trend West Africa TIGHTER... Mediterranean TIGHTER... North Sea TIGHTER... ^ Year to date. * Average Earnings are calculated as described in 'SIW Sources and Methods', which can be found on SIN 21. ** Spot demand is the average number of fixtures per month. ~ Spot supply covers the number of unfixed vessels entering the load zone per month. "Timecharter rates basis estimated owners' rates. Clarkson Research Services Page 6 Feb-15

7 Suezmax Market Trends Suezmax Balance % M. Bpd / M. Dwt Forecast Demand WAF-N America % AG-Med % Caribs-N America % WAF-Med/UKC % AG-India % Med/UKC- N America % Med/Black Sea-UKC % Med/Black Sea-Med % Others % Total, m bpd % Total, m dwt ~ # % % growth -1.2% 7.5% 4.6%.9% 4.5% ~Derived from crude trade above and DPP trade. Supply* 12,-159,999 dwt # ,-199,999 dwt # Total # % Combos in Oil # % Laid-up & Long-term Storage # % Shuttle # % Active Fleet # % % growth -1.1% 8.6%.8%.4% 1.1% Fleet includes coated Suezmax tankers. Balance Demand Growth -1% 7% 5% 1% 4% Supply Growth -1% 9% 1% % 1% Balance % -1% 4% % 3% In 215, Suezmax deadweight demand is projected to rise 4.5% y-o-y. Suezmax crude trade on the AG-India route is expected to increase 15% y-o-y in 215, following an 8% y-o-y rise in 214. The continued expansion of Indian refinery capacity is expected to support overall Indian crude imports, a significant proportion of which is likely to be sourced from producers in the AG. However, it is expected that crude Suezmax trade on the Caribs-North America route will decline 7% y-o-y in 215. US crude production is expected to expand further in 215, whilst several Caribbean producers are projected to reduce shipments. Meanwhile, dirty petroleum products trade on Suezmaxes is expected to continue to lend further support to overall Suezmax deadweight demand in 215. By the end of 215, the Suezmax fleet is expected to have increased by 1% y-o-y, following a decline in 214, to stand at 76.7m dwt. Of the 1.6m dwt on order at the start of 215, just 1.5m dwt is expected to be delivered in full year 215. Demolition is expected to remain at relatively low levels of around.6m dwt, reflecting both the improved market environment and the relatively low proportion of the fleet that is aged over 2 years (with only 3% of Suezmax tonnage aged over 2 years at the start of February). Fleet growth is projected to accelerate to 4% in 216, following three years of very limited expansion. Suezmax S&P Number & Value Number & Value 3 Month Market # ^ Aug Sep Oct Nov Dec Jan Trend Newbuild Prices K newbuild ($m) WEAK... -1% No. of Contracts Placed FIRMER... 8% Est. Investment Value ($bn) FIRMER... 7% Secondhand Prices 16k 5yo ($m) FIRMER... 13% 15k 1yo ($m) FIRMER... 13% No. of Sales FIRMER... 22% 5 Year Old/NB Price Ratio 76% 71% 78% 92% 77% 76% 82% 87% 88% 92% FIRMER... 14% Demolition $/ldt WEAKER... -9% No. Scrapped FIRMER... 2% Est. Scrap Value ($m) FIRMER % Fleet M. Dwt M. Dwt, month end Forecast* Profile ^ Aug Sep Oct Nov Dec Jan Fleet Total Deliveries Scrapping Contracting Orderbook *End of year figure. ^ Year to date. Fleet totals in metric tonnes, net of est. conversions and misc. changes, accounting for historical and expected delivery performance. Clarkson Research Services Page 7 Feb-15

8 Aframax Market Trends Aframax Market US$,/day Jan-13 Mar-13 Commentary Aframax Spot Average WS Average WS Aframax Market Rates ^ Aug Sep Oct Nov Dec Jan This Month 1K Baltic - UKC FIRMER... 39% 8K Med - Med FIRM... 8% 8K UKC - UKC FIRM... 8% 8K Indonesia - Japan STEADY... -2% 8K Black Sea - Med FIRMER... 9% 8K Gulf - East WEAKER... -9% 7K Caribs - US Gulf FIRMER... 27% Aframax Average $/day Average $/day Aframax Market Earnings* ^ Aug Sep Oct Nov Dec Jan This Month Average Spot Earnings 14,131 24,75 42,527 23,745 13,73 21,947 43,22 33,619 42,527 FIRMER... 26% 1 Year T/C Rate (Modern)" 13,288 17,538 23, 18, 18,625 19,7 21,25 23, 23, STEADY... % 3 Year T/C Rate (Modern)" 15,48 19,29 23, 21, 21, 21,6 22,25 23, 23, STEADY... % Aframax Spot Aframax Spot Demand Demand** ^ Aug Sep Oct Nov Dec Jan This Month Ex - Caribbean WEAKER!! -43% Ex - UK-Cont WEAKER... -8% Ex - Mediterranean FIRMER... 11% Ex - Arabian Gulf FIRMER... 21% Others FIRM... 5% Total Nos STEADY... -1% Total m. dwt STEADY... -1% Aframax Spot No of Spot Fixtures (RHS) May-13 Jul-13 Sep-13 Nov-13 Jan-14 Aframax Average Spot Earnings (LHS) Mar-14 No of Fixtures, Avg. No of Vessels, Avg. Aframax Spot Outlook Supply ~ ^ Aug Sep Oct Nov Dec Jan Feb Trend North Sea Caribbean Mediterranean Clarkson Research Services Page 8 May-14 Jul-14 Sep-14 Nov-14 Jan Following on from a decline in average spot earnings in December, Aframax average spot earnings rebounded by 26% m-o-m to $42,527/day in January. This is almost double the annual average for 214 and three times greater than earnings in. In the timecharter market, one and three year rates remained steady m-o-m at $23,/day in January, slightly greater than the annual average for both and 214. In Northern Europe, January began relatively brightly, with some of the tonnage list being cleared out towards the start of the month, leaving tonnage and enquiry finely balanced. However, this did not last and an ample tonnage list depressed rates towards the end of the month. Overall, the rate on the cross-ukc route averaged WS 121 in January. In the Med, the market was generally weaker than in the Baltic and UKC. However, during the middle of the month there was a surge in enquiry which supported significant w-o-w rate increases on the cross-med route, although this was not sustained. Overall, the monthly average rate on the cross-med route stood at WS 112 in January. At the start of February it was expected that the number of unfixed Aframaxes entering both the North Sea and Caribbean during the month would fall. No of Fixtures No of Vessels, start TIGHTER... TIGHTER... SOFTER... ^ Year to date. * Average Earnings are calculated as described in 'SIW Sources and Methods', which can be found on SIN 21. ** Spot demand is the average number of fixtures per month. ~ Spot supply covers the number of unfixed vessels entering the load zone per month. Note: Fixtures refer to crude fixtures only. "Timecharter rates basis estimated owners' rates. Feb-15

9 Aframax Market Trends Aframax Balance % M. Bpd / M. Dwt Forecast Crude Demand Baltic - UKC % UKC - UKC % Med/Black Sea-Med % Intra Far East % Caribs - N America % AG - Asia/Australia % Others % Total, m bpd % Total, m dwt ~ # % % growth -5.9% -2.8% -8.4% -3.6% -2.1% Supply* 8,-89,999 dwt # ,-99,999 dwt # ,-119,999 dwt # Total # % Combos in Oil # % Laid-up & Long-term Storage # % Shuttle Tankers # % Products Tankers # % Active Crude Fleet # % % growth -2.5% 1.4% -2.6% -2.2% -.8% Balance Demand Growth -6% -3% -8% -4% -2% Supply Growth -3% 1% -3% -2% -1% Balance -3% -4% -6% -1% -1% ~Demand derived from crude trade above and DPP trade. In 214, crude Aframax deadweight demand is estimated to have declined 3.6% y-o-y. A decrease of 2.1% y-o-y is projected for crude Aframax deadweight demand in 215, partially as a result of an expected 9% y-o-y decline in AG-Asia/Australia crude Aframax trade. The impending closure of the Bulwer refinery in Brisbane, Australia is expected to suppress total crude imports to the country, a significant proportion of which is shipped from the AG. Meanwhile, crude Aframax trade is expected to increase by 3% y-o-y on the intra Far East routes, largely driven by an expected rise in Chinese imports of crude from smaller Asian producers as well as from Eastern Russia. In 214, seaborne crude exports from Russia to China rose 26% y-o-y and it is expected that volumes on this route will continue to rise in 215, lending support to crude Aframax trade in the region. The total Aframax fleet is projected to increase 3% y-o-y by the end of 215, largely on the back of additions to the LR2 product tanker fleet. Total Aframax deliveries are projected to reach 4.m dwt in 215, with the vast majority of these expected to be LR2s. Meanwhile, scrapping is projected to total 1.4m dwt and is generally expected to affect the crude fleet more significantly than coated Aframax tonnage. The active crude Aframax fleet is expected to shrink by.8% during 215. Aframax S&P Number & Value Number & Value 3 Month Oct Trend Market ^ Aug Sep Nov Dec Jan Newbuild Prices K newbuild ($m) SAME... % No. of Contracts Placed FIRMER... 2% Est. Investment Value ($bn) FIRMER... 2% Secondhand Prices 15K 5yo, d/h ($m) FIRM... 5% 15K 1yo, d/h ($m) FIRMER... 8% 95-97k 15 year old ($m) FIRMER... 14% No. of Sales WEAKER!! -13% 5 Year Old/NB Price Ratio 61% 6% 72% 86% 75% 78% 78% 78% 78% 86% FIRM... 5% Demolition $/ldt WEAKER... -9% No. Scrapped WEAKER!! -67% Est. Scrap Value ($m) WEAKER!! -68% Fleet M. Dwt M. Dwt, month end Forecast* Profile ^ Aug Sep Oct Nov Dec Jan Fleet Total Deliveries Scrapping Contracting Orderbook *End of year figure. ^Year to date. Fleet totals in metric tonnes, net of est. conversions and misc. changes, accounting for historical and expected delivery performance. Clarkson Research Services Page 9 Feb-15

10 Panamax Market Trends Panamax Market US$,/day Dirty Products Average Spot Earnings (LHS) Jan-13 No. of Spot Fixtures (RHS) Mar-13 May-13 Jul-13 Commentary Panamax Spot Average WS Average WS Panamax Market Rates ^ Aug Sep Oct Nov Dec Jan This Month 55K Med - USG (Dirty) FIRMER... 9% 5K UKC - USG (Dirty) FIRM... 7% 5K WCSA - USAC (Dirty) STEADY... % 5K Caribs - USG (Dirty) STEADY... -2% For Panamax product tanker (LR1) spot rates see page 24. Panamax Average $/day Average $/day Panamax Market Earnings* ^ Aug Sep Oct Nov Dec Jan This Month Ave. Spot Earnings (Dirty) 11,127 18,858 31,744 17,421 14,211 17,472 23,894 27,996 31,744 FIRMER... 13% Dirty Spot Earnings Index FIRMER... 13% For Panamax product tanker (LR1) one year timecharter rates see page 24. Panamax Spot Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 No of Fixtures, Avg. Jan In January, average dirty spot earnings increased by 13% m-o-m to $31,744/day, the highest level since January 214. Previously to this, dirty monthly average spot earnings had not breached the $3,/day mark since December 28, when they stood at $36,134/day. Average spot earnings in January 215 were almost three times higher than the annual average and significantly greater than the 214 average. In the European market, available tonnage remained limited throughout much of January, which helped to support good market conditions for owners. Coupled with this, there was a relatively high level of enquiry towards the start of the month, further supporting rates on routes ex- Europe. For example, the average rate on the UKC-USG route stood at WS 146 in January, whilst the rate on the Med-USG route averaged WS 144. In the Caribbean market, January started relatively weakly, with ample available tonnage and low enquiry. However, this situation did not persist throughout the month as activity picked up, thinning out the tonnage list in the region and supporting rates in the Caribbean. Overall, the monthly average rate on the Caribs-USG route stood at WS 145. Meanwhile, on the other side of Latin America, the rate on the WCSA-USAC route averaged WS 135. No of Fixtures Panamax Spot Demand Demand** ^ Aug Sep Oct Nov Dec Jan This Month Ex-Caribs WEAKER % Ex-Far East/South East Asia #DIV/! #DIV/! Ex-Med/Black Sea WEAKER... -1% Ex-UKC FIRMER % Ex-Baltic STEADY... % Others FIRMER... 82% Total Nos FIRMER... 48% Total m. dwt FIRMER... 5% Panamax Spot No of Vessels, Avg. No of Vessels, start Panamax Spot Outlook Supply ~ ^ Aug Sep Oct Nov Dec Jan Feb Trend Caribbean Black Sea UK/Cont TIGHTER... TIGHTER... TIGHTER... ^ Year to date. * Average Earnings are calculated as described in 'SIW Sources and Methods', which can be found on SIN 21. ** Spot demand is the average number of fixtures per month. ~ Spot supply covers the number of unfixed vessels entering the load zone per month. Note: Fixtures refer to crude fixtures only. Clarkson Research Services Page 1 Feb-15

11 Panamax Market Trends Panamax Balance % Crude Demand Caribs - N. America % AG-Far East % Med/UKC/BSea-N. America % Far East-Far East % Baltic-UKC % Baltic-N. America % Other % Total, m bpd % Total, m dwt ~ # % % growth.9% -1.5% -31.1% -38.% -14.% ~Derived from crude trade above and DPP trade. Supply* 6,-69,999 dwt # ,-79,999 dwt # Total # % Combos in Oil # #DIV/! Laid-up & Long-term Storage # % Shuttle Tankers # % Products Tankers # Active Crude Fleet # % % growth -22.7% -1.3% -5.3% -5.5% -1.7% Balance Demand Growth 1% -2% -31% -38% -14% Supply Growth -23% -1% -5% -5% -2% Balance 24% % -26% -33% -12% Panamax S&P M. Bpd / M. Dwt Forecast Uncoated Panamax deadweight demand is expected to continue to decline in 215. Crude oil volumes traded on Panamaxes on the Caribs North America route have come under significant pressure in recent years, falling by around 3% in 214 alone, as the US has continued to reduce dependence on imported crude oil. However, uncoated Panamaxes have continued to trade some volumes of dirty petroleum products, mostly on routes into the US from Europe. Overall, the crude Panamax tanker fleet is expected to continue to decline in 215, by around 2%, to reach 5.5m dwt by the end of the year. The uncoated Panamax fleet has now shrunk by around 4% compared to its peak size at the end of 26. Around 95% of orders placed in the Panamax size sector since the end of 26 have been for coated LR1 product tankers, while the majority of vessels scrapped have been uncoated tankers. However, demolition in the sector is expected to remain relatively low in the short-term. The LR1 tanker fleet is relatively modern, with only 4% of tonnage aged over 15 years (and 2% over 2 years), while only a few elderly uncoated Panamaxes remain in the fleet (8 vessels are currently aged over 2 years, around 9% of the fleet). Overall, the LR1 tanker fleet is projected to remain fairly steady in 215, but growth is likely to accelerate in 216, with 1.7m dwt projected to be delivered. Number & Value Number & Value 3 Month Market ^ Aug Sep Oct Nov Dec Jan Trend Newbuild Prices 73-75K LR1 newbuild ($m) WEAK... % No. of Contracts Placed WEAKER!! -33% Est. Investment Value ($bn) WEAKER!! -34% Secondhand Prices 73K LR1 5 year old ($m) FIRM... 5% 7K 1 year old ($m) FIRMER... 8% 7K 15 year old ($m) FIRMER... 12% No. of Sales WEAKER!! -33% 5 Year Old/NB Price Ratio 62% 68% 72% 79% 71% 7% 7% 7% 73% 79% FIRMER... 5% Demolition $/ldt WEAKER... -9% No. Scrapped SAME... % Est. Scrap Value ($m) WEAK... -4% Fleet M. Dwt M. Dwt, month end Forecast* Profile ^ Aug Sep Oct Nov Dec Jan Fleet Total Deliveries Scrapping Contracting Orderbook *End of year figure. ^ Year to date. Fleet totals in metric tonnes, net of est. conversions and misc. changes, accounting for historical and expected delivery performance. Clarkson Research Services Page 11 Feb-15

12 Seaborne Crude Imports Global Imports By Region 215 Other Asia 28% Imports to Million Bpd N. America United States SOFTER... -4% Canada FIRM... 3% Total SOFTER... -3% Imports to Imports to Others 12% EU 23% Million Bpd Million Bpd United States 12% Japan 9% China 16% % Change Asia % Change 2 China FIRM... 7% Japan STEADY... -2% Korea STEADY... 1% India FIRM... 4% Singapore STEADY... 2% Thailand FIRM... 4% Other Asia FIRM... 3% 12 Total* FIRM... 3% 1 EU % Change Germany STEADY... 1% France SOFTER... -3% Italy STEADY... -3% Spain STEADY... 2% Netherlands STEADY... -2% Other STEADY... -2% Total STEADY... -1% Imports to Million Bpd Major Others % Change Brazil FIRMER... 11% Africa FIRMER... 1% OECD Australasia WEAKER... -8% Commentary In 215, seaborne crude trade is projected to increase 1.4% to stand at 36.8m bpd, following a decline of 1.5% in 214. It is expected that the majority of growth will be driven by imports into Asia. In 215, Asian crude imports are currently expected to increase 3% to stand at 19.7m bpd, accounting for 54% of total seaborne crude imports, largely on the back of increased Chinese and Indian imports. The continued expansion of Indian refinery capacity this year is expected to support Indian crude imports rising 4% to 4.m bpd. Meanwhile, continued demand for importing crude oil at relatively lower prices is expected to support Chinese import volumes this year. However, Japanese crude imports are expected to decline 2% y-o-y to 3.4m bpd. The Japanese refinery sector has come under significant pressure in recent years and there have been further calls for consolidation and capacity cuts. As a result, it is expected that Japanese refiners are likely to continue to be largely outcompeted by more modern plants elsewhere in Asia and the Middle East. Meanwhile, total EU crude imports are projected to decline 1% y-o-y to 8.4m bpd. Although lower oil prices are likely to aid European refiners margins, declining oil demand across the region is expected to continue to suppress European crude import requirements in US Imports By Region m. bpd N & W Africa m. bpd Caribs/L. Am Middle East 26 m. bpd 26 Middle East Chinese Imports By Region WAF Others EU Imports By Region Black Sea/Med Baltic/North Sea Others Others 214e 214e 215f 215f Global Million Bpd Imports % Change Other Importers* STEADY... 1% Global Total STEADY... 1% % change 2.9% -.9% 2.7% -3.6% -1.5% 1.4% * Primarily other Latin American (.32m bpd in ) and non-eu (.6m bpd in ) importers Clarkson Research Services Page 12 Feb Middle East 214e 215f

13 Seaborne Crude Exports Seaborne Crude Exports By Region m bpd Latin America 26 Others FSU Africa Middle East 28 North Sea 21 Exports from Million Bpd Middle East % Change Saudi Arabia STEADY... 2% Iran FIRM... 7% Iraq * FIRM... 5% UAE FIRM... 5% Kuwait STEADY... % Oman STEADY... -1% Total Middle East STEADY... 2% Exports from Million Bpd Other Regions % Change Norway STEADY... % United Kingdom STEADY... -1% North Sea Total STEADY... % Mexico STEADY... -1% Venezuela STEADY... -2% Brazil WEAKER... -1% Colombia STEADY... -2% Ecuador STEADY... 2% Latin American Total STEADY... -2% Nigeria STEADY... -2% Libya FIRMER % Algeria STEADY... -2% Angola FIRM... 3% Gabon STEADY... 1% Others STEADY... 3% African Total STEADY... 3% Others & Million Bpd Global Total % Change 214e 215f Commentary Latin American crude exports are expected to decline 2% in 215 to reach 4.5m bpd. Several South American producers, most notably Venezuela, are expected to be significantly affected by the decline in oil prices, limiting their ability to invest further in the oil sector. Brazilian crude exports are expected to fall 1% y-o-y to.5m bpd, in spite of a relatively positive production outlook. The projected decline in Brazilian crude exports is largely as a result of increased domestic refinery capacity, which is likely to take a significant volume of Brazilian crude off the export market. Elsewhere, seaborne exports from the FSU are projected to decline 1% y-o-y to 4.9m bpd. Although Russian production is expected to remain relatively steady in 215, difficulties surrounding western sanctions are likely to suppress crude export levels. Similarly, tax incentives to refine crude domestically and then export it are expected to have an impact. Meanwhile, total exports from the North Sea are projected to remain steady y-o-y at 1.9m bpd in 215, with UK exports declining 1% y-o-y to.6m bpd. This reflects the expectation that relatively high cost production across several of the more mature fields in the North Sea may be adversely affected by the recent decline in the price of oil. Indonesia STEADY... 3% Australia STEADY... 1% 2 N. America China FSU (seaborne only) STEADY... -1% Other Exporters FIRMER... 9% 1 Global Total # STEADY... 1% % Change 2.9% -.9% 2.7% -3.6% -1.5% 1.4% *Iraqi crude exports include shipments out of the AG and do not include exports from the Med. Clarkson Research Services Page 13 Feb Middle Eastern Exports By Region m. bpd Others N. America 26 m. bpd 26 Asia Europe India West African Exports By Region m. bpd N. America 26 India e Other Asia China Europe 214e Latin American Exports By Region Others India 214e 215f 215f 215f

14 Crude Oil Transport Costs Jan-8 $ per 'bbl/mile * Jul-8 Jan-9 * Cost of moving 1, bbls of crude oil for 1 mile VLCC Delivered Cost Transport Cost ($ per 'bbl/m) VLCC Costs Transport Costs Av. Av. Av. Av. Nov Dec Jan This Month Total % freight * ,t Gulf-US Gulf % HIGHER!! 9% 265,t Gulf-Japan % SOFTER -2% 265,t Gulf-S. Korea % STEADY % 27,t Gulf-Singapore % SOFTER -2% 26,t WAF-China % STEADY 1% 26,t WAF-US Gulf % HIGHER!! 7% 26,t WAF- WC India % WEAKER!! -7% 275,t Caribs-Singapore % STEADY 3% VLCC Transport Cost STEADY 1% Suezmax Transport Cost ($ per 'bbl/m) Suezmax Costs Transport Costs Av. Av. Av. Av. Nov Dec Jan This Month Total % freight * ,t WAF-USAC % HIGHER!! 6% 13,t WAF-Med % HIGHER!! 7% 13,t Gulf-China % WEAKER!! -7% 14,t Med-Med % HIGHER!! 9% 14,t Black Sea- Med % STEADY 3% 13,t Gulf-WC India % WEAKER!! -12% Suezmax Transport Cost STEADY 1% Aframax Transport Cost ($ per 'bbl/m) Aframax Costs Transport Costs Av. Av. Av. Av. Nov Dec Jan This Month Total % freight * ,t Med-USAC % FIRMER 5% 8,t Black Sea-Med % HIGHER!! 9% 8,t UKC-UKC % HIGHER!! 8% 8,t Sidi Kerir-Trieste % HIGHER!! 8% 8,t Gulf-East % WEAKER!! -9% 8,t Indo-Japan % SOFTER -2% 7,t Caribs-US Gulf % HIGHER!! 27% Aframax Transport Cost HIGHER!! 7% Delivered cost= C&F price (sum of freight & cost of oil) prices avg. month. '%'= freight cost as % of Delivered Cost. Commodity costs based on following assumptions: Oil prices based on Dubai-Fateh ex-meg, Bonny Light-37 ex-waf, Algerian Sahara Blend ex-arzew, Dubai-Fateh ex-sidi Kerir, Russian Urals ex-black Sea, Brent Blend spot ex-ukc, Venezuela, Merey ex-caribs and Indonesia, Minas ex-indonesia. Oil prices sourced from various industry sources. *Indicates average of year to date. Clarkson Research Services Transport Cost By Ship Size Cost in a VLCC Jul-9 Jan-1 Jul-1 Jan-11 Jul-11 Jan-12 Cost in an Aframax Cost in a Suezmax $/bbl Jul-12 Jan-13 Delivered Cost $/bbl Delivered Cost $/bbl Jul-13 Jan-14 Jul-14 Jan-15 Page 14 Commentary VLCC: In January, the average cost of transporting crude on a VLCC rose 1% m-o-m. There were notable increases in average transport costs on the Gulf-US Gulf and WAF-US Gulf routes, where costs rose 9% and 7% m-o-m respectively. Meanwhile, crude transport costs on both the Gulf-Japan and Gulf-Singapore routes fell 2% m-o-m. Suezmax: Suezmax average crude transport costs increased by 1% m-o-m in January. The cost of transporting crude oil on the featured routes out of the Gulf declined, by 7% on the route to China and by 12% on the route to WC India. Aframax: In January, the average cost of transporting crude oil on an Aframax increased 7% m-o-m. The most dramatic increase across the featured routes was on the Caribs-US Gulf route, where transport costs increased 27% m-o-m. In contrast, transport costs on the Gulf-East and Indo-Japan routes fell 9% and 2% m-o-m respectively. Feb-15

15 The Oil Tanker Fleet & Orderbook Oil & Tanker Trades Outlook Fleet Definitions Tanker Fleet Data, Start Feb-15 The total tanker fleet and orderbook, as broken down in the following seven pages is the aggregate of crude, products, chemical and other specialised tankers for each size range. The definition for those sub-sectors is laid out below. Crude tankers are defined as all uncoated tankers above 6, dwt and are used in the transportation of crude oil and also dirty petroleum products. (Note Suezmax supply analysis on pages 3 and 7 includes coated Suezmaxes). Product tankers are defined as tankers suitable for the carriage of refined petroleum products and include: o Coated non-imo graded tankers o All IMO III tankers o IMO II tankers of 3,-59,999 dwt which meet the criteria: average tank size >3, cbm and tanks <75% segregated (excluding tankers with any stainless steel tanks) o Uncoated non-imo graded tankers 1,- 59,999 dwt o Excludes any specialised tankers. Note: Product Tanker supply analysis on pages 3 & 25 includes 1,-119,999 dwt product tankers only. Chemical tankers are defined as tankers that are suitable for chemical trades, including chemical parcel and chemical bulk tankers. Total chemical tanker fleet includes IMO I tankers, stainless steel tankers not designated as specialised tankers, tankers of an unknown IMO grade and IMO II tankers (excluding those 3,-59,999 dwt with an average tank size > 3, cbm and tanks <75% segregated, which are classed as product tankers). The other specialised tanker fleet includes tankers designed for the carriage of specialist liquids (other than chemical tankers) such as asphalt and bitumen tankers, water carriers, waste disposal carriers, molten sulphur tankers, methanol carriers, and wine and juice carriers The Oil Tanker Fleet & Orderbook m.dwt Orderbook as % Fleet Chemical/Other Specialised Tanker Fleet Product Tanker Fleet 5% 4% 3% 2% No. m. Dwt Total Tanker Fleet (1k+ dwt) 5, % 2+ years 7% 4% % < 5 years Average Age (years) Average Size (dwt) Est. Value Of The Fleet ($bn) 25% 3% , Total Tanker Orderbook (1k+ dwt) % of Fleet 14% 14% Est. Value Of The Orderbook ($bn) 39.2 No. m. Dwt Crude Tanker Fleet Average Age (years) Average Size (dwt) Crude Tanker Orderbook % of Fleet Demolition (215 ytd) Deliveries (215 ytd) Product Tanker Fleet (1k+ dwt) Average Age (years) Average Size (dwt) Product Tanker Orderbook % of Fleet Demolition (215 ytd) Deliveries (215 ytd) 1, % 4 2, % , % , % No. m. Dwt Chemical Tanker Fleet (1k+ dwt) Chemical Tanker Orderbook % of Fleet Other Specialised Tanker Fleet (1k+ dwt) Other Specialised Tanker Orderbook % of Fleet 1, % % % % Tanker Supply Trends m.dwt 1 Tankers 1,+ dwt 8 Contracting 6 Deliveries Scrapping Tankers 1,+ dwt 1% 2 15 Crude Tanker Fleet 1 Feb-5 Feb-6 Feb-7 Feb-8 Feb-9 Feb-1 Feb-11 Feb-12 Feb-13 Feb-14 Feb-15 % ytd Clarkson Research Services Page i Feb-15

16 Tanker Fleet By Size (Numbers) Total Tanker No. vessels, end: No. vessels, start: Fleet Growth % Fleet Profile 214 Sep Oct Nov Dec Jan Feb Year on Year Total < 1, 2,725 2,86 2,849 2,838 2,841 2,844 2,847 2,849 2,848 STEADY. 1.4% 1,/14, STEADY..1% 15,/19, STEADY. 1.% 2,/24, STEADY. 2.3% 25,/29, STEADY. -1.4% Total 1-29,999 1,56 1,51 1,513 1,51 1,55 1,59 1,513 1,513 1,515 STEADY..5% 3,/34, STEADY. -3.2% 35,/39, STEADY. 3.2% 4,/44, STEADY. -2.1% 45,/49, LARGER!! 8.% 5,/59, LARGER!! 5.2% Total 3-59,999 1,845 1,895 1,977 1,95 1,958 1,967 1,974 1,977 1,989 STEADY. 4.3% Total 1-59,999 3,351 3,45 3,49 3,451 3,463 3,476 3,487 3,49 3,54 STEADY. 2.6% 6,/69, SMALLER!! -6.7% 7,/79, STEADY. 1.2% Total Panamax STEADY. -.5% 8,/89, SMALLER!! -29.2% 9,/99, SMALLER!! -17.% 1,/119, STEADY. 2.3% Total Aframax STEADY. -.6% 12,/159, STEADY 16,/199, STEADY. -1.4% Total Suezmax STEADY. -.2% 2,/254, ,/319, STEADY..9% 32, & LARGER!! 17.8% Total VL/ULCC STEADY. 2.1% TOTAL 1,+ 5,758 5,835 5,917 5,876 5,89 5,9 5,913 5,917 5,941 STEADY. 1.6% Product Tanker No. vessels, end: No. vessels, start: Fleet Growth % Fleet Profile 214 Sep Oct Nov Dec Jan Feb Year on Year Total < 1, 982 1,27 1,35 1,34 1,34 1,35 1,35 1,35 1,35 STEADY..6% 1,/14, STEADY. -.6% 15,/19, STEADY. -1.% 2,/24, STEADY 25,/29, SMALLER!! -5.5% Total 1-29, STEADY. -1.6% 3,/34, SMALLER!! -6.7% 35,/39, STEADY. 4.1% 4,/44, STEADY. -2.5% 45,/49, LARGER!! 8.5% 5,/59, LARGER!! 5.4% Total 3-59,999 1,533 1,58 1,659 1,631 1,64 1,648 1,656 1,659 1,669 STEADY. 4.8% Total 1-59,999 1,862 1,92 1,976 1,942 1,953 1,963 1,973 1,976 1,985 STEADY. 3.8% 6,/69, SMALLER!! -5.1% 7,/79, STEADY. 1.4% Total Panamax STEADY..6% 8,/89, SMALLER!! -25.% 9,/99, STEADY 1,/119, LARGER!! 6.9% Total Aframax STEADY. 4.8% 12,/159, STEADY 16,/199, STEADY Total Suezmax STEADY 2,/254, ,/319,999 32, &+ Total VL/ULCC TOTAL 1,+ 2,435 2,486 2,57 2,53 2,544 2,555 2,567 2,57 2,584 STEADY. 3.4% Fleet statistics shown are in dwt divisions. Clarkson Research Services Page ii Feb-15

17 Tanker Fleet By Size (Dwt) Total Tanker Million Dwt, end: Million Dwt, start: Fleet Growth % Fleet Profile 214 Sep Oct Nov Dec Jan Feb Year on Year Total < 1, STEADY. 1.3% 1,/14, STEADY..1% 15,/19, STEADY. 1.2% 2,/24, STEADY. 2.4% 25,/29, STEADY. -1.6% Total 1-29, STEADY..5% 3,/34, STEADY. -3.4% 35,/39, STEADY. 3.3% 4,/44, STEADY. -2.1% 45,/49, LARGER!! 8.5% 5,/59, STEADY. 5.% Total 3-59, STEADY. 4.8% Total 1-59, STEADY. 3.8% 6,/69, SMALLER!! -6.6% 7,/79, STEADY. 1.3% Total Panamax STEADY. -.3% 8,/89, SMALLER!! -29.2% 9,/99, SMALLER!! -16.8% 1,/119, STEADY. 2.4% Total Aframax STEADY. -.1% 12,/159, STEADY..2% 16,/199, STEADY. -1.5% Total Suezmax STEADY. -.1% 2,/254, ,/319, STEADY. 1.% 32, & LARGER!! 17.5% Total VL/ULCC STEADY. 2.3% TOTAL 1, STEADY. 1.6% Product Tanker Million Dwt, end: Million Dwt, start: Fleet Growth % Fleet Profile 214 Sep Oct Nov Dec Jan Feb Year on Year Total < 1, STEADY..6% 1,/14, STEADY. -.8% 15,/19, STEADY. -.8% 2,/24, STEADY 25,/29, SMALLER!! -5.5% Total 1-29, STEADY. -2.1% 3,/34, SMALLER!! -6.9% 35,/39, STEADY. 4.2% 4,/44, STEADY. -2.6% 45,/49, LARGER!! 8.9% 5,/59, LARGER!! 5.2% Total 3-59, LARGER!! 5.3% Total 1-59, STEADY. 4.8% 6,/69, SMALLER!! -5.2% 7,/79, STEADY. 1.4% Total Panamax STEADY..7% 8,/89, SMALLER!! -24.8% 9,/99, STEADY 1,/119, LARGER!! 7.% Total Aframax LARGER!! 5.3% 12,/159, STEADY 16,/199, STEADY Total Suezmax STEADY 2,/254, ,/319,999 32, &+ Total VL/ULCC TOTAL 1, STEADY. 4.1% Fleet statistics shown are in dwt divisions. Clarkson Research Services Page iii Feb-15

18 Tanker Fleet By Age (Numbers) Total Tanker Age Profile (years) % Fleet Age Profile (years) No. vessels Fleet Ratios Age Profile Feb 15yrs+/ O'bk/ Fleet 15yrs+ Total < 1, 32% 1% 11% 26% 21% ,848 42% 11% 1,/14,999 11% 12% 8% 49% 19% % 12% 15,/19,999 12% 1% 14% 39% 25% % 52% 2,/24,999 18% 7% 27% 32% 17% % 118% 25,/29,999 31% 3% 15% 23% 28% % 71% Total 1-29,999 14% 1% 12% 42% 22% ,515 24% 41% 3,/34,999 12% 19% 29% 25% 16% % 62% 35,/39,999 1% 1% 3% 36% 14% % 74% 4,/44,999 15% 15% 29% 36% 5% % 23% 45,/49,999 4% 11% 2% 38% 27% % 45% 5,/59,999 2% 1% 5% 47% % 3133% Total 3-59,999 7% 1% 2% 38% 25% ,989 17% 16% Total 1-59,999 1% 1% 17% 4% 24% ,54 2% 72% 6,/69,999 17% 8% 37% 33% 5% % 1% 7,/79,999 2% 17% 56% 25% % 667% Total Panamax 3% 3% 21% 51% 21% % 156% 8,/89,999 29% 12% 24% 35% % 9,/99,999 32% 44% 22% 1% 1% % 1,/119,999 1% 1% 22% 42% 25% % 13% Total Aframax 4% 13% 22% 37% 24% % 73% 12,/159,999 4% 14% 23% 22% 37% % 71% 16,/199,999 22% 57% 21% Total Suezmax 3% 12% 23% 27% 35% % 89% 2,/254, ,/319,999 2% 12% 28% 27% 31% % 89% 32, &+ 6% 23% 72% Total VL/ULCC 1% 11% 26% 27% 35% % 122% TOTAL 1,+ 7% 1% 19% 38% 25% ,941 17% 79% Product Tanker Age Profile (years) % Fleet Age Profile (years) No. vessels Fleet Ratios Age Profile Feb 15yrs+/ O'bk/ Fleet 15yrs+ Total < 1, 4% 8% 8% 2% 24% % 14% 1,/14,999 29% 12% 6% 3% 22% % 15,/19,999 39% 13% 13% 14% 2% % 6% 2,/24,999 54% 8% 31% 8% % 25% 25,/29,999 71% 8% 6% 15% % 5% Total 1-29,999 4% 12% 8% 2% 2% % 4% 3,/34,999 17% 21% 39% 16% 7% % 33% 35,/39,999 8% 4% 33% 41% 14% % 39% 4,/44,999 17% 13% 29% 36% 6% % 28% 45,/49,999 4% 12% 2% 38% 26% % 46% 5,/59,999 1% 1% 51% 47% % 5967% Total 3-59,999 6% 8% 2% 4% 25% % 112% Total 1-59,999 12% 9% 18% 37% 24% % 69% 6,/69,999 16% 5% 35% 35% 8% % 7,/79,999 2% 16% 56% 27% % 72% Total Panamax 2% 2% 18% 53% 25% % 18% 8,/89,999 56% 11% 33% % 9,/99,999 5% 55% 4% % 1,/119,999 6% 11% 48% 36% % 471% Total Aframax 2% 1% 13% 42% 33% % 26% 12,/159,999 13% 5% 13% 25% % 2% 16,/199,999 33% 67% Total Suezmax 9% 45% 27% 18% % 2% 2,/254, ,/319,999 32, &+ Total VL/ULCC TOTAL 1,+ 9% 8% 18% 4% 25% ,584 17% 43% Fleet statistics shown are in dwt divisions. Clarkson Research Services Page iv Feb-15

19 Tanker Fleet By Age (Dwt) Total Tanker Age Profile (years) % Fleet Age Profile (years) Million Dwt Fleet Ratios Age Profile Feb 15yrs+/ O'bk/ Fleet 15yrs+ Total < 1, 27% 1% 11% 28% 24% % 1% 1,/14,999 11% 11% 8% 5% 19% % 12% 15,/19,999 11% 1% 14% 39% 25% % 56% 2,/24,999 18% 6% 27% 32% 16% % 122% 25,/29,999 33% 4% 14% 22% 27% % 62% Total 1-29,999 15% 9% 13% 4% 23% % 49% 3,/34,999 11% 19% 29% 25% 15% % 64% 35,/39,999 1% 1% 29% 36% 14% % 75% 4,/44,999 15% 16% 29% 35% 5% % 22% 45,/49,999 4% 11% 19% 38% 28% % 48% 5,/59,999 2% 1% 5% 47% % 2987% Total 3-59,999 6% 9% 19% 39% 26% % 118% Total 1-59,999 8% 9% 18% 39% 26% % 96% 6,/69,999 16% 9% 38% 32% 5% % 9% 7,/79,999 2% 17% 56% 25% % 667% Total Panamax 3% 3% 21% 52% 21% % 166% 8,/89,999 29% 12% 23% 36% % 9,/99,999 32% 44% 22% 1% 1% % 1,/119,999 1% 1% 22% 42% 26% % 137% Total Aframax 3% 12% 22% 38% 24% % 8% 12,/159,999 4% 13% 23% 23% 37% % 76% 16,/199,999 22% 58% 2% Total Suezmax 3% 11% 23% 28% 35% % 96% 2,/254, ,/319,999 1% 11% 28% 27% 32% % 93% 32, &+ 7% 22% 71% Total VL/ULCC 1% 1% 26% 27% 35% % 128% TOTAL 1,+ 4% 1% 23% 33% 3% % 15% Product Tanker Age Profile (years) % Fleet Age Profile (years) Million Dwt Fleet Ratios Age Profile Feb 15yrs+/ O'bk/ Fleet 15yrs+ Total < 1, 36% 8% 7% 22% 26% % 1% 1,/14,999 29% 13% 6% 3% 22% % 15,/19,999 39% 13% 14% 14% 2% % 6% 2,/24,999 53% 7% 32% 8% % 27% 25,/29,999 72% 8% 5% 15% % 5% Total 1-29,999 46% 11% 8% 17% 18% % 5% 3,/34,999 16% 21% 4% 16% 7% % 35% 35,/39,999 8% 4% 32% 41% 14% % 4% 4,/44,999 17% 13% 29% 36% 5% % 26% 45,/49,999 4% 11% 2% 38% 27% % 49% 5,/59,999 1% 1% 51% 47% % 5575% Total 3-59,999 6% 8% 19% 41% 27% % 128% Total 1-59,999 8% 8% 18% 39% 26% % 1% 6,/69,999 16% 6% 36% 35% 8% % 7,/79,999 2% 15% 56% 27% % 716% Total Panamax 2% 2% 17% 54% 25% % 295% 8,/89,999 56% 11% 33% % 9,/99,999 5% 55% 4% % 1,/119,999 6% 1% 48% 36% % 5% Total Aframax 2% 9% 12% 43% 34% % 233% 12,/159,999 1% 52% 13% 25% % 261% 16,/199,999 33% 67% Total Suezmax 7% 47% 28% 18% % 261% 2,/254, ,/319,999 32, &+ Total VL/ULCC TOTAL 1,+ 6% 7% 17% 42% 27% % 135% Fleet statistics shown are in dwt divisions. Clarkson Research Services Page v Feb-15

20 Tanker Orderbook Total Tanker No. vessels, end: No. vessels, start: Orderbook for Delivery in: Orderbook 214 Oct Nov Dec Jan Feb % Flt '15 '16 '17+ Total < 1, % ,/14, % ,/19, % ,/24, % ,/29, % Total 1-29, % ,/34, % ,/39, % ,/44, % ,/49, % ,/59, % Total 3-59, % Total 1-59, % ,/69, % 2 7,/79, % Total Panamax % ,/89, ,/99,999 1,/119, % Total Aframax % ,/159, % ,/199, % 1 4 Total Suezmax % ,/254, ,/319, % , & % Total VL/ULCC % TOTAL 1, % Product Tanker No. vessels, end: No. vessels, start: Orderbook for Delivery in: Orderbook 214 Oct Nov Dec Jan Feb % Flt '15 '16 '17+ Total < 1, % 68 1,/14, ,/19, % 3 2,/24, % 2 25,/29, % 1 1 Total 1-29, % 6 1 3,/34, % ,/39, % ,/44, % ,/49, % ,/59, % Total 3-59, % Total 1-59, % ,/69,999 7,/79, % Total Panamax % ,/89, ,/99,999 1,/119, % Total Aframax % ,/159, % 2 16,/199,999 Total Suezmax % 2 2,/254, ,/319,999 32, &+ Total VL/ULCC TOTAL 1, % Fleet statistics shown are in dwt divisions. Clarkson Research Services Page vi Feb-15

21 Tanker Orderbook Total Tanker Million Dwt, end: Million Dwt, start: Orderbook for Delivery in: Orderbook 214 Oct Nov Dec Jan Feb % Flt '15 '16 '17+ Total < 1, %.5.1 1,/14, % ,/19, % ,/24, % ,/29, % Total 1-29, % ,/34, % ,/39, % ,/44, % ,/49, % ,/59, % Total 3-59, % Total 1-59, % ,/69, %.1 7,/79, % Total Panamax % ,/89, ,/99,999 1,/119, % Total Aframax % ,/159, % ,/199, % Total Suezmax % ,/254, ,/319, % , & % Total VL/ULCC % TOTAL 1, % Product Tanker Million Dwt, end: Million Dwt, start: Orderbook for Delivery in: Orderbook 214 Oct Nov Dec Jan Feb % Flt '15 '16 '17+ Total < 1, %.3 1,/14, ,/19, %.1 2,/24, %. 25,/29, %.. Total 1-29, %.1. 3,/34, % ,/39, % ,/44, % ,/49, % ,/59, % Total 3-59, % Total 1-59, % ,/69,999 7,/79, % Total Panamax % ,/89, ,/99,999 1,/119, % Total Aframax % ,/159, %.3 16,/199,999 Total Suezmax %.3 2,/254, ,/319,999-32, &+ - Total VL/ULCC - TOTAL 1, % Fleet statistics shown are in dwt divisions. Clarkson Research Services Page vii Feb-15

22 Tanker Fleet Characteristics Total Tanker Avg. Size/Age Speed/Cons Dimensions (m.) Hull/Tanks Fleet Details Dwt Years Knots t/day LOA Beam Draft ' bbls Coated Total < 1, 5, % 1,/14,999 12, % 15,/19,999 18, % 2,/24,999 22, % 25,/29,999 27, % Total 1-29,999 16, % 3,/34,999 32, % 35,/39,999 37, % 4,/44,999 41, % 45,/49,999 47, % 5,/59,999 51, % Total 3-59,999 44, % Total 1-59,999 32, % 6,/69,999 66, % 7,/79,999 73, % Total Panamax 72, % 8,/89,999 85, % 9,/99,999 97, % 1,/119,999 19, % Total Aframax 17, % 12,/159, , ,45 2% 16,/199, , ,11 6% Total Suezmax 154, ,53 3% 2,/254,999 #DIV/! #DIV/! #DIV/! #DIV/! #DIV/! #DIV/! #DIV/! #DIV/! #DIV/! 255,/319,999 35, ,86 32, &+ 325, ,186 Total VL/ULCC 37, ,94 TOTAL 1,+ 86, % Product Tanker Avg. Size/Age Speed/Cons Dimensions (m.) Hull/Tanks Fleet Details Dwt Years Knots t/day LOA Beam Draft ' bbls IMO III Total < 1, 6, % 1,/14,999 12, % 15,/19,999 17, % 2,/24,999 22, % 25,/29,999 29, % Total 1-29,999 17, % 3,/34,999 32, % 35,/39,999 37, % 4,/44,999 41, % 45,/49,999 47, % 5,/59,999 51, % Total 3-59,999 44, % Total 1-59,999 4, % 6,/69,999 66, % 7,/79,999 74, % Total Panamax 73, % 8,/89,999 84, ,/99,999 98, % 1,/119,999 11, % Total Aframax 18, % 12,/159, , ,49 16,/199, , ,87 Total Suezmax 154, ,6 2,/254, ,/319,999 32, &+ Total VL/ULCC TOTAL 1,+ 51, % Fleet statistics shown are in dwt divisions. Clarkson Research Services Page viii Feb-15

23 Financial and Economic Indicators Jan-3 Index re-based at end-1998 as of June. Based on a basket of listed tanker shipping company prices. Oil Prices Clarkson Tanker Share Price Index Jan-4 Jan-5 Jan-6 Average Brent WTI Bonny Dubai Urals * Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan y-o-y % -55% -49% -54% -56% -55% Oil prices quoted in USD/bbl. Sahara oil price refers to Algeria, Sahara Blend. Bunker Prices Jan-7 Jan-8 Jan-9 Minas % Sahara % Average 38 Cst, US$/tonne MGO, US$/tonne Latin Average U.S.A. China Japan India Europe Rott. Sing. Fuj. Hou. Rott. Sing. Fuj. Am. OECD % 13.% -3.2% 3.9% -1.4% 1.1% -1.8% % 11.1% -21.8% 6.1% -13.1% -6.8% -13.3% % 15.7% 16.6% 1.% 7.% 8.7% 8.% % 13.7% -3.5% 3.9% 3.1% 2.1% 2.4% % 1.%.% 1.5% -2.7% -.5% -.1% 215* Sep 4.3% 8.%.8% 2.5% -.2% -.5% 1.5% 3-Jan Oct 4.% 7.7% -1.% -4.2% -.2% -1.6% 1.1% 6-Feb Nov 5.2% 7.2% -3.7% 3.8% -1.1% -2.9%.7% 13-Feb Dec 4.9% 7.9%.3% 1.7% -.2% -.9% 1.6% 2-Feb Jan 4.8%.%.%.%.%.%.% *Averages are the mean of year-to-date figures. Economic and oil price data from various industry sources. Clarkson Research Services Page 15 Jan-1 end 1998 = 1 Jan-11 Jan-12 Jan-13 Jan-14 Jan US$/bbl WTI Brent Industrial Production Financial News During January, the Clarkson Tanker Share price Index reached 551 points, although it since fell slightly to reach 517 points at the end of January. Saudi Arabia-based Bahri, who own a diverse fleet including 35 oil tankers of a combined 9.9m dwt following a merger with Saudi Aramco s Vela last year, reported profits of $32.9m (SAR 123.4m) in Q This is down from SAR 28.3m in Q3 214, largely reflecting a significant decline in contributions from Petredec, who own eight LPG carriers and are 3% owned by Bahri. However, Bahri s reported operating profit increased by 47% q-o-q, supported by higher tanker rates. It was announced in January that Tankships Investment, led by George Economou, has filed for a US IPO aimed at raising $15m. It is reported that if the listing is successful, the company will take control of ten ships currently owned by DryShips and Cardiff Marine, both overseen by Economou. Furthermore, Tankships will also move to take a further three Suezmax newbuildings from other businesses related to Economou. Tankships recently reported revenue of $151m in the 12 months to end September 214. Historical Oil Price Trends Brent Blend, 12/2/215 US$/bbl Spot Price 59.3 Futures Price Apr Jul Oct Jan-6 Jul-6 Jan-7 Jul-7 Jan-8 Jul-8 Jan-9 Jul-9 Jan-1 Jul-1 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Feb-15

24 Tanker Sale & Purchase Market Recently Reported Tanker Sales Type Vessel Name Date Dwt Hull Built Builder Price US$m Buyer Tanker Chapter Genta* Jan ,493 D/Hull 21 Jiangsu Rongsheng 96. Clients of Frontline Tanker Roxen Star* Jan ,436 D/Hull Jiangsu Rongsheng # Clients of Frontline TankChem Valpadana Jan-15 26,2 IMO III 22 Shina S.B. 13. Nigerian interests TankChem Rong Zhou Jan-15 13,898 IMO II/III 21 Zhejiang Chen Ye 1.5 Clients of Sino-Global Tanker Raissa Jan-15 17,83 D/Hull 214 Sainty SB (Yangzhou) Clients of Shorelink Tanker ST Charlotte Jan-15 12,497 D/Hull 26 Yardimci Deniz Clients of Vroon TankChem ST Dawn Jan-15 19,399 IMO II/III 2 Shin Kurushima 14.3 Clients of TPL Tanker Hellas Symphony Jan-15 46,168 D/Hull 2 Hyundai HI 1.5 Undisclosed interests TankChem Tosca Jan-15 47,436 IMO II 24 Brod. Trogir 18. Clients of Pareto Project Tanker Nord Star Jan-15 45,92 D/Hull Shin Kurushima 23. Clients of Benetech Tanker Nord Obtainer Jan-15 47,522 D/Hull 28 Onomichi Dockyd 19.5 Clients of Minerva Marine TankChem Caletta Jan-15 51,745 IMO III Hyundai Mipo 3. Greek interests TankChem Calafuria Jan-15 51,745 IMO III 21 Hyundai Mipo 3. Greek interests Tanker DS Voyager Jan-15 39,233 D/Hull 23 Samsung HI 42. Clients of NG Moundreas TankChem Cape Benat Jan-15 33,54 IMO III 1998 Admiralty S.Y. 9. Indian interests Tanker Challenge Premier Jan-15 45,897 D/Hull Shin Kurushima 16. Undisclosed interests TankChem Global Neptune Jan-15 13,34 IMO II/III 24 Higaki Zosen 12.5 European interests TankChem Maersk Christiansbro Jan-15 44,885 IMO III 1996 Halla Eng. 8. Indian interests Tanker Patris Jan ,543 D/Hull 2 Daewoo 38.5 Clients of Modec * En bloc sales. # En Bloc price shown under first ship of bloc. Sale & Purchase Market News The guideline price for a 5-year old VLCC stood at $81m at the end of January, the highest value since August, and representing a 5% increase from the guideline price of $77m at the end of 214. Asset prices in all featured sectors increased by a similar extent during the month. As a result, the Secondhand Tanker Price Index rose to points at the end of January. In January, there were two reported sales of VLCCs. Towards the start of the month clients of Modec purchased the 298,543 dwt, 2-built PATRIS for $38.5m. Meanwhile, clients of NG Moundreas reportedly paid $42m for the 23-built, 39,233 dwt DS VOYAGER. In the Suezmax sector, Frontline completed a transaction worth $96m for two vessels; the - built, 156,436 dwt ROXEN STAR and the 21-built, 156,493 dwt CHAPTER GENTA. Elsewhere, the -built CALETTA and the 21-built CALAFURIA product tankers, both 51,745 dwt, were sold to Greek interests for $3m per vessel. Sales Number of Sales Jan Volume * Tanker Type: VLCC Suezmax Aframax Panamax Handy Tanker Total Yr Old SH End Year Jan Jan-3 Secondhand Tanker Price Index Jan ' = 1 Jan-4 Jan-5 Vessel no. Jan-6 Jan-7 Jan-8 Jan-9 Jan-1 Jan-11 Jan-12 Jan-13 Secondhand Sales Volume Jan-14 Jan-15 Prices $m VLCC 31k dwt Suezmax 16k dwt Aframax 15k dwt Panamax 73k dwt Products 47k dwt Products 37k dwt SH Tanker Price Index *Total sales in year up to month end. Clarkson Research Services Page 16 Feb-15 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15

25 Tanker Timecharter Market Latest Tanker Timecharter Fixtures Reported Charterer Vessel Name Built DWT Rate $/Day Delivery 3-Jan-15 Koch Ratna Namrata 28 15,83 1 Yr D $21,75 Feb Jan-15 BG Elizabeth I A 24 36,344 2 Yrs/1 Yr D $42,5 Feb Jan-15 Shell Front Century , Mths D $42,5 Feb Jan-15 Trafigura Cosglad Lake 297,388 1 Yr D $41, Feb Jan-15 Frontline Miss Lucy 28 5,1 6 Mths/6 Mths/12 Mths C $15,15 Feb Jan-15 Shell Victory ,89 2 Yrs D $4,5 Feb 15 2-Jan-15 Clearlake Progress ,783 1 Yr D $36,5 Feb Jan-15 Unipec Cosgold Lake 297,35 1 Yr D $42, Feb Jan-15 Shell Front Vanguard ,58 15 Mths D $43, Feb Jan-15 Koch Front Panther ,161 1 Yr D $25, Feb Jan-15 Koch Atina ,5 2 Yrs D $29,5 Feb Jan-15 Koch Front Puma , 1 Yr D $25, Feb Jan-15 Koch Istanbul ,4 2 Yrs D $29,5 Apr Jan-15 Trafigura Four Smile 21 16, Mths D $29, Jan Jan-15 Trafigura Genmar Victory ,64 1 Yr D $38, Jan Jan-15 Trafigura Genmar Vision ,679 1 Yr D $38, Jan Jan-15 Gunvor Arctic Blizzard 26 5,922 1A 6 Mths C $18, Jan Jan-15 SK Energy Arenza Xxvii 2 38,596 1 Yr D $4,2 Jan Jan-15 ST Shipping Montenero 26 4,156 1 Yr/12 Mths D $14,15 Feb Jan-15 Trafigura Maersk Promise 26 19, Mths C $2,5 Jan Jan-15 Lukoil Valtamed ,69 1 Yr D $32, Feb Jan-15 Shell Amantea 22 39,287 2 Yrs D $4,5 Feb Jan-15 Shell Olympic Legacy ,789 2 Yrs D $39, Jan Jan-15 Clearlake Good News ,984 1 Yr D $36,5 Jan 15 9-Jan-15 Koch Pioneer ,397 1 Yr/12 Mths D $39, Jan 15 8-Jan-15 Koch Nave Capella 5, Ext. 6 Mths/6 Mths C $15, Jan 15 8-Jan-15 CNR Nave Alderamin 5, 2 Yrs C $15,6 Jan 15 7-Jan-15 Litasco Front Falcon 22 39,64 6 Mths D $55, Jan 15 7-Jan-15 Trafigura Xin Run Yang 297,293 1 Yr D $36, Jan 15 6-Jan-15 Trafigura Evridiki 167,281 2 Yrs/1 Yr D $26,/$3, Jan 15 5-Jan-15 Koch Maran Cassiopeia ,553 1 Yr/12 Mths D $28,/$32, Jan 15 1 Yr Timecharter Rates* Average VLCC Suezmax Aframax LR1 MR 37K dwt 21 37,962 28,377 18,731 16,64 13,16 11,528 24,947 19,587 15,457 14,745 13,668 12,221 22,125 17,356 13,639 12,995 13,514 12,317 19,837 16,14 13,288 14,981 14,351 13, ,115 22,712 17,538 15,88 14,63 13, ^ 46,6 32, 23, 19,65 15,25 13,65 Oct 31,1 24,9 19,7 16,3 14,3 13, Nov 32,125 28,25 21,25 17,813 14,813 13,125 Dec 36,5 32, 23, 19,25 15,375 13,25 Jan 46,6 32, 23, 19,65 15,25 13,65 3 Yr Timecharter Rates* Ice Class Average VLCC Suezmax Aframax LR1 MR 37K dwt 21 38,32 27,387 2,52 17,495 14,175 11,783 31,481 23,63 18,135 16,63 14,538 13,212 26,995 2,952 15,87 14,168 14,389 13,178 23,44 18,96 15,48 15,514 15,63 13, ,183 24,413 19,29 16,466 15,399 14, ^ 41,1 3, 23, 18, 15,25 14, Oct 34, 26,8 21,6 16,7 15, 14, Nov 34, 29,5 22,25 17,25 15, 14, Dec 34,625 3, 23, 18, 15,188 14, Jan 41,1 3, 23, 18, 15,25 14, * All rates are quoted in US$/day, and represent owners' expectations. ^ Year to date. Clarkson Research Services Page 17 Ext. Period D/C Timecharter Developments Date During January there was significant interest in chartering VLCCs for periods of around 6-12 months, in many cases reportedly to store crude oil after a relatively steep contango in the crude oil price developed. However, this increased level of interest and the continued firmness in the spot market contributed to VLCC timecharter rates firming notably throughout the month, which in combination with a lessening of the steepness of the oil price contango reduced interest in storage activities into February. Interest in fixing tankers for storage was only focussed in the VLCC sector, given the greater economies of scale and lower cost per barrel of storing oil than on relatively smaller crude tankers. The oil price contango would need to steepen further before it would appear to be economically viable to store crude on a Suezmax tanker. Overall, benchmark 1 year VLCC timecharter rates increased 28% m-o-m to average $46,6/day in January, but have eased back slightly during the first few weeks of February. Average one and three year timecharter rates in all other crude tanker sectors remained steady m-o-m in January. Meanwhile, the average one year timecharter rate for an LR1 tanker rose marginally in January to $19,65/day, up by 2% m-o-m. This represents the fifth consecutive m-o-m increase, and the highest monthly average rate since April, with the rate having risen by around 3% since mid-214. Meanwhile, the average one year MR timecharter rate fell marginally m-o-m in January to stand at $15,25/day. Feb-15

26 Global Oil Supply 4% 3% 2% 1% % -1% -2% -3% Middle Eastern Trend & Producers Outlook Saudi Arabia STEADY... -2% Iran STEADY... 2% UAE FIRM... 5% Kuwait STEADY... % Iraq FIRM... 5% Others STEADY... % Total STEADY... 1% N. & S. American Million Barrels Per Day Trend & Producers Outlook United States FIRM... 8% Canada FIRM... 4% Mexico STEADY... -1% Total North America FIRM... 5% Venezuela STEADY... % Brazil FIRM... 4% Total Latin America STEADY... 1% Total Americas FIRM... 4% Other Major Global Oil Supply Growth Million Barrels Per Day Million Barrels Per Day Commentary % growth Following on from estimated growth of 1.5% y-o-y in 214, global oil supply is expected to increase by a further 1.7% in 215 to reach 93.7m bpd. Global 3.1% production growth is expected to be largely supported by a 5% rise in total North American output, which is expected to contribute an additional 1.m bpd of 1.7% 1.8% 1.4% 1.5% 1.7% production. Meanwhile, it is expected that Latin American production will rise 1% to 7.2m bpd, largely on the back of increased output in Brazil where production is.7% projected to rise 4% to 2.2m bpd in 215. This is.4% expected to be partially driven by a ramp up of production.2% across several offshore pre-salt fields that commenced.% production in 214. Brazilian state-owned producer, Petrobras, recently announced that these fields remained -.7% financially viable at around $5/bbl. Russian oil output is currently expected to remain steady in 215 to stand at 11.m bpd. The projected lack of growth in Russian production is largely due to the continuation of western sanctions, which have affected the ability of several producers to continue to invest in sustaining high levels of output across several mature fields, notably in central Siberia. Elsewhere, total African production is projected to grow 3% to 8.6m bpd in e 215f Trend & Producers Outlook Nigeria STEADY... -2% Libya FIRMER... 4% Algeria STEADY... -1% Angola STEADY... 3% Total Africa STEADY... 3% Norway STEADY... % UK STEADY... -1% North Sea Total STEADY... % Russia STEADY... % Other FSU (excl. Russia) STEADY... -2% China STEADY... % Others STEADY... 2% Global Million Barrels Per Day Trend & Total Outlook Total # STEADY... 2% % Change.% 1.4% -.7% 3.1%.7% 1.8%.4% 1.5% 1.7% Note: Global total supply includes NGLs, lease condensates, refinery gains and other liquids, regional totals include crude, lease condensates and NGLs. Clarkson Research Services Page 18 Feb-15

27 Refinery Capacity North Regional Refinery Capacity Growth Commentary America USA %.4%.% Canada %.% 2.5% Mexico %.% 14.8% E. & West Europe OECD Europe %.% 1.5% of which EU %.%.% Non-OECD Europe* %.%.% Middle East Saudi Arabia % 13.8%.% Kuwait %.%.% Iran %.%.% U.A.E % 42.6%.% Others % 7.7%.% Total % 12.8%.% Asia m. bpd Bars represent year-on-year capacity changes North America Western Europe Middle East Asia Globally, refinery capacity increased 2.2% y-o-y in 214 to 96.8m bpd. A similar pace of growth is expected in 215, taking global refinery capacity to 99.2m bpd, largely driven by non-oecd expansion. Meanwhile, in the OECD, US refinery capacity stood at 18.m bpd at the end of 214, the largest capacity of any country globally. In the first 11 months of 214, US refinery utilisation averaged roughly 9%, representing a 2% y-o-y increase and the highest level since, when utilisation averaged 91%. Looking to 215, US refinery capacity is expected to increase marginally during the year. Elsewhere, Venezuelan refinery capacity is expected to stand at 1.3m bpd by the end of 215, representing the second greatest capacity of any Latin American country after Brazil. However, there have been a series of issues affecting the Venezuelan refinery sector in recent months. Towards the end of 214 there was a major blackout at the Amuay and Cardon refineries, which took 955, bpd of capacity offline for several days. In January 215, it was announced that the 146, bpd facility at El Palito will undergo major maintenance in 215, which is likely to take the plant offline for a significant proportion of the year. PDVSA have previously stated that they plan to double capacity at El Palito by 217. Total Refinery Capacity (M Bpd) Projected Capacity Growth Total Refinery Capacity (M Bpd) Projected Capacity Growth Total Refinery Capacity (M Bpd) Projected Capacity Growth Total Refinery Capacity (M Bpd) Projected Capacity Growth China %.%.% Japan %.%.% India % 9.3% 1.9% South Korea %.%.% Singapore %.%.% Others % 6.5% 4.1% Total % 2.4%.9% Others & Total Refinery Capacity (M Bpd) Projected Capacity Growth Total FSU %.%.% Brazil % 14.% 12.3% Others % 3.5% 2.5% Global Total # % 2.6% 1.4% Growth Rate 2.6% 2.2% -.2% 2.3%.8% 2.2% *Excluding FSU. Clarkson Research Services Page 19 Feb-15

28 Global Oil Demand 5% 4% 3% 2% 1% % -1% -2% -3% North Global Oil Demand Growth Commentary Trend & America Outlook United States STEADY... 1% Canada STEADY... % Mexico STEADY... % Total STEADY... 1% OECD Trend & Europe Outlook Big STEADY... -1% Total OECD Europe STEADY... % OECD 1.6%.5% 26 Trend & Pacific Outlook Japan SOFTER... -3% Korea STEADY... % Total OECD Pacific STEADY... -2% Non-OECD 2.1% Trend & Asia Outlook India FIRM... 4% China STEADY... 3% Other Far East STEADY... 2% Total STEADY... 2% Other Non-OECD -1.% -1.3% % 21.4% 1.% 1.5%.8% 1.% 214e Million Barrels Per Day Million Barrels Per Day Million Barrels Per Day Million Barrels Per Day Million Barrels Per Day Trend & Nations Outlook 215f In 214, global oil demand is estimated to have risen.8% y-o-y to 91.8m bpd, largely on the back of increased non- OECD Asian demand. In 215, total oil demand is projected to increase 1.% y-o-y, partially supported by growing Middle Eastern demand. In 215, oil demand in the Middle East is expected to rise 3% y-o-y, supported by expansion in the petrochemical industry and increased vehicle usage. Meanwhile, Japanese oil demand is projected to decline by 3% y-o-y, continuing the downward trend of the past few years. Japanese consumer demand was affected in 214 by an increase in sales tax, and demand is likely to remain under pressure in 215 as the economy continues to struggle. The Japanese petrochemical sector is also expected to continue to face difficulties, partially from competition from more efficient plants overseas. Elsewhere in Asia, Indian oil demand is projected to rise 4% y-o-y to 3.7m bpd. India is expected to continue to expand petrochemical activities in 215, which is projected to be a key driver of Indian oil demand growth this year. Partly on the back of Indian demand growth, total non-oecd demand is expected to increase 2% y-o-y in 215 to reach 47.3m bpd, marginally higher than total OECD demand. FSU SOFTER... -4% Brazil STEADY... 2% Latin America (excl. Brazil) STEADY... 3% Africa FIRM... 3% Middle East FIRM... 3% Others FIRMER... 14% Global Million Barrels Per Day Trend & Total Outlook Global Total # STEADY... 1% % Change -1.% -1.3% 3.7%.4% 1.% 1.5%.8% 1.% Clarkson Research Services Page 2 Feb-15

29 OECD Products Demand 1% 8% 6% 4% 2% % -2% -4% -6% -8% -1% -12% -14% OECD OECD Demand Growth - By Product Type Commentary North America 21 Aug-14 Sep-14 Oct * % Change Naphtha SOFTER... -8% Motor Gasoline STEADY... 2% Jet/Kerosene STEADY... 1% Gasoil FIRM... 4% Residual Fuel Oil WEAKER % Other Products SOFTER... -3% LPG STEADY... -2% Total STEADY... % OECD Europe 21 Aug-14 Sep-14 Oct * % Change Naphtha STEADY... 2% Motor Gasoline STEADY... -1% Jet/Kerosene STEADY... 1% Gasoil STEADY... -1% Residual Fuel Oil SOFTER... -6% Other Products SOFTER... -8% LPG STEADY... % Total STEADY... -1% OECD Overall Demand Growth Residual Fuel Oil Jet/Kerosene Motor Gasoline Gasoil 21 Million Barrels Per Day Million Barrels Per Day Million Barrels Per Day In the first ten months of 214, OECD products demand is estimated to have fallen 1% y-o-y to 45.5m bpd, largely on the back of a 13% y-o-y decline in demand for gasoil. However, gasoil demand in OECD North America rose 4% y-o-y in the same period, whilst gasoline demand increased by 2%. Demand for motor fuel reportedly increased strongly in October in the region, supporting significant m-o-m growth in gasoline and gasoil demand. Conversely, demand for gasoline and gasoil in OECD Europe was slightly lower in the first ten months of 214 compared to the same period in, partly due to increased vehicle efficiency. Meanwhile, naphtha demand in the region rose 2% y-o-y in the year to October 214. However, the closure of the Moerdijk cracker in the Netherlands in October, following a leak, is likely to have limited naptha demand to some extent towards the end of the year. Elsewhere, OECD Pacific products demand fell 3% y-o-y in the first ten months of 214. This was partly due to weak Japanese demand, for both residual fuel oil in power generation and fuels used in transport. Demand for gasoline (the most widely used fuel in Japanese cars) in the OECD Pacific region averaged 1.5m bpd in January-October 214, down 3% compared to the same period in. Pacific 21 Aug-14 Sep-14 Oct * % Change Naphtha STEADY... 3% Motor Gasoline STEADY... -3% Jet/Kerosene STEADY... % Gasoil STEADY... % Residual Fuel Oil WEAKER % Other Products WEAKER % LPG STEADY... -2% Total STEADY... -3% OECD Million Barrels Per Day Total 21 Aug-14 Sep-14 Oct * % Change Naphtha STEADY... 1% Motor Gasoline STEADY... 1% Jet/Kerosene STEADY... 1% Gasoil WEAKER % Residual Fuel Oil STEADY... 1% Other Products WEAKER % LPG STEADY... -2% Total STEADY... -1% *214 data is average of year to date. Clarkson Research Services Page 21 Feb-15

30 Seaborne Products Imports Global Seaborne Product Imports By Region 215 Imports to North America % Change United States SOFTER... -5% Canada FIRM... 5% Total SOFTER... -3% Imports to Asia % Change Japan STEADY... -3% Korea STEADY... 3% China SOFTER... -8% India STEADY... % Australia FIRMER... 8% Other Asia FIRM... 5% Total FIRM... 3% Imports to Europe % Change Germany STEADY... % France FIRM... 4% United Kingdom FIRM... 4% Netherlands STEADY... 1% Belgium STEADY... -3% Other FIRM... 3% Total Europe STEADY... 2% Imports to Million Bpd Major Others Mexico STEADY... 1% Latin America FIRMER... 12% Middle East FIRM... 4% Africa FIRM... 8% Global Others 46% Latin America 11% North America 6% Japan 3% Million Bpd Million Bpd Million Bpd Million Bpd China 3% Europe 31% % Change Imports % Change Global Others FIRM... 5% Global Total # FIRM... 3% % Change 6.6% 3.%.9% 3.9% 2.% 3.4% Commentary Following an estimated increase of 2.% y-o-y in 214, seaborne products trade is expected to rise a further 3.4% y-o-y to 21.1m bpd in 215. Total European imports are expected to rise 2% y-o-y to 6.6m bpd, largely on the back of a weak refinery sector and further economic recovery in some European countries. Elsewhere, total North American products imports are expected to decline 3% y-o-y, on the back of a projected 5% y-o-y fall in US products imports. In spite of recent refinery strikes, domestic US refinery output is expected to continue to be supported by a glut of relatively cheap US-produced crude in the short-term, further limiting demand for imported products. Meanwhile, Canadian products imports are expected to rise 5% y-o-y in 215, partly on the back of increased imports of products for blending with heavy crude produced from tar sands. Elsewhere, products imports to Australia are projected to increase 8% y-o-y to.5m bpd, largely as a result of the impending closure of the.1m bpd Bulwer Island refinery. Korean products imports are projected to increase 3% y-o-y to.7m bpd this year. The relatively firm outlook for the Korean manufacturing industry, which uses significant quantities of oil products, as well as the petrochemical sector, is expected to support this increase m. bpd 26 US Imports by Region UKC Others Africa/Med Caribs/L. Am e European Imports by Region m. bpd Others Baltic/B. Sea Med NW Europe Americas Mid East 214e Japanese Imports By Region m. bpd Intra Asia 26 Others Middle East India 214e 215f 215f 215f Clarkson Research Services Page 22 Feb-15

31 Seaborne Products Exports Seaborne Products Exports By Region m bpd Exports from Million Bpd N. America % Change United States FIRM... 3% Canada STEADY... -1% Total N. America FIRM... 4% Exports from Exports from Exports from Million Bpd Other Regions % Change FSU FIRM... 5% Latin America FIRMER... 1% Africa FIRMER... 8% MEG FIRMER... 11% Global Million Bpd Million Bpd Million Bpd Others FSU Asia Europe Middle East North America 214e 215f Asia % Change.5 Singapore FIRM... 4% Korea STEADY... -1%. India FIRM... 4% China FIRM... 5% Japan SOFTER... -3% Other Asia STEADY... 2% Total Asia STEADY... 2% Europe % Change 4. Netherlands STEADY... -1% 3. United Kingdom SOFTER... -8% Italy SOFTER... -6% 2. Belgium STEADY... 2% 1. France STEADY... -3%. Others STEADY... % Total Europe STEADY... -1% Commentary After rising by an estimated 7% in 214, US seaborne products exports are expected to increase by 3% y-o-y in 215 to 2.7m bpd. Although US refiners are expected to continue to benefit from relatively cheap domestic crude, it is unlikely that they will be able to increase refinery throughput to a similar extent as in 214. Meanwhile, it is expected that Chinese products exports will rise 5% y-o-y in 215, on the back of continued firm refinery expansion and a slight slowdown in domestic Chinese oil demand growth. Chinese seaborne exports increased by around 3% in 214, driven largely by greater shipments on short-haul intra-asian routes. Japanese products exports are projected to soften slightly in 215, with Japanese refineries expected to continue to come under pressure from more efficient and modern plants elsewhere in Asia and the Middle East. Conversely, Indian products exports are expected to grow 4% y-o-y in 215, largely on the back of continued expansion of Indian refinery capacity, although volumes are reported to have eased moderately in 214. Elsewhere, seaborne products exports from the FSU are expected to rise 5% y-o-y to 3.1m bpd, partly supported by tax policies in Russia which are designed to encourage refiners to modernise their plants US Products Exports By Region m. bpd 26 Others Caribs South America UKC 214e Asian Products Exports By Region m. bpd Australia 26 CJK 28 Europe Others 21 Other Asia 214e 215f 215f European Products Exports By Region m. bpd WAF North America Intra Europe Exports % Change Global Others FIRM... 5% Global Total # FIRM... 3% % Change 6.6% 3.%.9% 3.9% 2.% 3.4% Others 214e 215f Clarkson Research Services Page 23 Feb-15

32 Product Tanker Market Trends US$,/day Jan-13 Mar-13 May-13 Products Tanker Market Jul-13 Commentary Clean Spot Average WS Average WS Clean Market Rates ^ Aug Sep Oct Nov Dec Jan This Month LR2 Gulf - Japan 75K WEAKER... -9% LR1 Gulf - Japan 55K FIRM... 4% MR USG - UKC 38K WEAKER!! -38% MR UKC - USAC 37K WEAKER % MR WC India - Japan 35K STEADY... 1% Handy Med - Med 3K SOFTER... -5% Product Average $/day Average $/day Product Market Earnings* ^ Aug Sep Oct Nov Dec Jan This Month Clean 'MR' Spot Earnings 13,277 12,323 22,6 9,61 11,759 15,941 2,532 25,117 22,6 WEAKER % Clean 'Handy' Spot Earnings 1,668 12,473 31,987 4,639 6,487 15,694 23,83 32,849 31,987 STEADY... -3% LR1 74, dwt 1 Yr T/C" 14,981 15,88 19,65 15,3 15,875 16,3 17,813 19,25 19,65 STEADY... 2% MR 47-48, dwt 1 Yr T/C" 14,351 14,63 15,25 14, 13,813 14,3 14,813 15,375 15,25 STEADY... -1% Product Spot Sep-13 Clean MR Spot Earnings (LHS) No of Clean & Dirty Spot Fixtures (RHS) Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 No of Fixtures, Avg. Jan Clean MR spot earnings declined 12% m-o-m in January, to stand at $22,6/day. However, this remains significantly higher than the annual average for both and 214. Meanwhile, clean Handy spot earnings fell by 3% m-o-m to $31,987/day. In the timecharter market, the average one year LR1 timecharter rate increased by 2% m-o-m to $19,65/day. January was a mixed month in the LR2 market, with several swings in the market. For example, towards the start of the month, the LR2 tonnage list in the MEG was reduced significantly. Following this, the market softened on the back of limited activity, only to pick up again later in January. Meanwhile, the LR1 market was more subdued, with rates falling throughout much of January. The MR market was generally quiet during January, with rates in the Atlantic softening notably throughout the month. While the month started with high levels of activity in Northern Europe, an increase in rates was limited by a steady flow of tonnage to the region. Throughout the rest of the month, rates in the region continued to decline. At the start of February, it was expected that the number of unfixed product tankers entering the MEG and Baltic would decrease, whilst the number of product tankers entering Singapore would rise. No of Fixtures Product Spot Demand Demand** ^ Aug Sep Oct Nov Dec Jan This Month Ex - Arabian Gulf FIRM... 7% Ex - Mediterranean WEAKER % Ex - Caribbean WEAKER!! -67% Others SOFTER... -4% Total Nos SOFTER... -3% Total m. dwt STEADY... % Product Spot No of Vessels, Avg. No of Vessels, start Product Spot Outlook Supply ~ ^ Aug Sep Oct Nov Dec Jan Feb Trend Arabian Gulf TIGHTER... Singapore SOFTER... Baltic TIGHTER... ^ Year to date. * Average Earnings are calculated as described in 'SIW Sources and Methods', which can be found on the Shipping Intelligence Network. ** Spot demand is the average number of clean products fixtures per month. ~ Spot supply is the number of unfixed vessels entering the load zone per month. Note: Fixtures refer to those for vessels over 1, dwt only. "Timecharter rates basis estimated owners' rates. Clarkson Research Services Page 24 Feb-15

33 Product Tanker Market Trends Products Balance % Demand Intra Far East" % Intra Europe/ Baltic/Med % USG-S America % Transatlantic^ % Other % Total, m bpd ~ % Total, m dwt ** # % % growth 2.5% 1.7% 2.8% 2.% 4.% "Includes China, Japan, Korea, Australia, India. ^both directions. Supply* 1,-59,999 dwt # % 6,-79,999 dwt # % 8,-119,999 dwt # % Total # % Combos in Oil # % Laid-up # % Long-term Storage # % Active Fleet # % % growth 3.5% 2.1% 2.2% 3.9% 5.8% For product tanker fleet definition see page 27 and below. Balance Demand Growth 2% 2% 3% 2% 4% Supply Growth 4% 2% 2% 4% 6% Balance -1% % 1% -2% -2% ** Product tanker demand derived from DPP, CPP and veg oil trade. ~ Includes all oil petroleum products trade. Products S&P Market ^ Aug Sep Oct Nov Dec Jan Newbuild Prices 47-51K newbuild ($m) WEAK... -1% No. of Contracts Placed WEAKER!! -29% Est. Investment Value ($bn) WEAKER!! -3% Secondhand Prices 47K 5yo ($m) FIRM... 1% 45K 1yo ($m) WEAK... -5% 45K 15yo ($m) WEAK... -5% No. of Sales FIRMER... 35% 5 Year Old/NB Price Ratio 73% 77% 73% 74% 69% 69% 69% 68% 68% 74% FIRM... 1% Demolition $/ldt WEAKER... -9% No. Scrapped FIRMER... 14% Est. Scrap Value ($m) FIRMER... 5% Fleet M. Bpd / M. Dwt Forecast Total product tanker deadweight demand is projected to increase 4% y-o-y in 215, following an estimated 2% y-o-y rise in 214. Significant products trade growth is expected on routes out of the AG, especially to some Asian countries such as Japan, which significantly increased products imports from the AG during 214, at the expense of shorter-haul intra-asian volumes. Meanwhile, continued high levels of US refinery throughput, despite recent strike activity at a number of facilities, is expected to further suppress imports into the country, a notable proportion of which is typically sourced from Europe. While shipments out of the US in the short-term are expected to remain robust (particularly to South American nations), overall transatlantic products trade volumes are currently projected to soften slightly in 215. At the end of January 215, the product tanker fleet totalled 132.6m dwt. Product tanker fleet growth is expected to accelerate to 5.8% in 215, with 8.8m dwt of tonnage expected to be delivered in the full year. This includes more than 3m dwt of LR2 tonnage, which is expected to lead to an expansion of around 1% in the LR2 fleet during the year. A further 5.3m dwt of tonnage is projected to be delivered in the 1-6, dwt sector in 215. At the start of February, the total product tanker orderbook totalled 23.7m dwt, representing 18% of the fleet. Number & Value Number & Value 3 Month Trend M. Dwt M. Dwt, month end Forecast* Profile # ^ Aug Sep Oct Nov Dec Jan Fleet Total Deliveries Scrapping Contracting Orderbook *End of year figure. ^ Year to date. Fleet totals in metric tonnes, net of est. conversions, and misc. changes, accounting for historical and expected delivery performance. #The product tanker fleet, as shown on this page and on page 3, includes some IMO II graded tankers as well as all IMO III graded vessels and all coated tankers; for full specification of the product tanker fleet see page 27. Clarkson Research Services Page 25 Feb-15

34 Tanker Safety & Oil Spills Tanker Number of Incidents Incidents ^ Collision Contact Reported Tanker Incidents By Type No. Other Miscellaneous Collision Hull/Machinery Damage Hijacking Fire / Explosion Hull / Machinery damage Miscellaneous Pirate Hijacking Grounded/Wrecked/Stranded Total Losses Number of Vessels Lost At Sea ^ VLCC 2,+ dwt Suezmax ,999 dwt Aframax 8-119,999 dwt Panamax 6-79,999 dwt Handy 1-59,999 dwt 1 <1, dwt Total ^Number of incidents/losses in year to date. Number of Oil Spills & Tonnes Spilt Spillages By Cause Operations: Loading/Discharge Number Quantity 7-7t >7t,t Number of Incidents <7t 7-7t >7t 3, No. Volume of Oil Spilt 's tonnes Fires & explosions 14% Spillages (>7t) By Cause Other 27% Reported Losses At Sea ytd ytd Bunkering Other Operations 4, Accidents: Collisions Groundings Hull Failures Fires & Explosions Other: Total , ,864 1, Hull failures 9% Groundings 23% Collisions 27% Clarkson Research Services Page 26 Feb-15