Odfjell Announces Arbitration Award

Monday, Jan 04, 2010

Our arbitration case in Stockholm as against the large Russian state-owned shipyard “Sevmash” has been decided.

Basically, the shipyard failed to deliver to us 12 ships contracted for in 2004. Whilst winning our main point, that of Sevmash being guilty of willful misconduct, nevertheless we are seriously disappointed about the damages awarded, only USD 43.76 million. This figure is but a fraction of the value of our lost bargain, and of our trading losses.

The first ship should have been delivered in September 2007. By the time we felt compelled to cancel the contracts, in February 2008, by the shipyard’s own account the first ship was then delayed by 14 months etc.

The cost of the arbitration was apportioned 75% as against Sevmash.

For further information please contact Jan A. Hammer President/CEO on tel.: + 47 55 27 00 or e-mail: jan.hammer@odfjell.com

The Odfjell Group is a leading participant in the global market of the seaborne transportation and storage of chemicals and other speciality bulk liquids. The Odfjell fleet exceeds 90 ships, trading both globally and regionally. The tank terminal division consists of eight fully or partially owned tank terminals and nine associated tank terminals strategically located. The Odfjell Group is headquarted in Bergen, Norway and has about 20 offices world wide.Odfjell has about 3 700 employees and an annual gross revenue of about USD 1,5 billion.

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)

Source: Odfjell