TransAtlantic Interim Report January – March 2014

Regulatory News:

TransAtlantic (STO:RABTB):

First quarter 2014

· Net revenues amounted to SEK 729 M (685)

· Result before capital costs, EBITDA, amounted to SEK 10M (-18)

· Operational result before tax amounted to SEK -51 M (-138)

· Result before tax amounted to SEK -108 M (-138)

· Result after tax amounted to SEK -112 M (-137)

· Earnings per share after tax amounted to SEK -0.8 (-1.2)

Major events first quarter

· Group consolidated operational profit for the first quarter was SEK -51 M, an improvement compared to last year, however still unsatisfactory. In addition, further provisions for restructuring and onerous contracts were made by SEK -57 M.

· The Board decided to propose a rights issue of SEK 148 M during the Q2 to be utilized in connection with ongoing restructuring.

· The close down of TransPal Line was concluded during the quarter within Industrial Shipping, which together with other efficiency measures resulted in a headcount reduction of about 70 people.

· The previously communicated evaluation of a possible sale of the PSV fleet has not been concluded.

· Viking Supply Ships has been negotiating a bareboat charter for two AHTS newbuild vessels. These negotiations have come to a halt, without Viking Supply Ships entering into such an agreement.

· Viking Supply Ships has declared the purchase options regarding SBS Typhoon and Freyja Viking, with purchase dates of mid-May and early October respectively. · Viking Supply Ships has refinanced a loan facility totaling SEK 679 M.

· The political situation in Ukraine and the sanctions on Russia has to date not impacted Viking Supply Ships. An escalated situation could cause negative implications on the company’s activities in Russia; however, it is difficult to substantiate the probability and consequences of this threat.

· The Group has breached certain covenants during Q1, for which waivers have been received from relevant parties.

Major events after the fourth quarter

· The 2014 season of the Tor Viking charter agreement has been cancelled.

· The Annual General Meeting approved the Board's proposed rights issue, set at SEK 148 M.

· The Annual General Meeting approved the sale of Transatlantic Spolka z.o.o. and Daugava Shipping Services SIA.

· Following Kistefos mandatory bid offer to the shareholders of Transatlantic, the Board members independent of Kistefos, the mandatory bid committee, have evaluated the offer. The recommendation to the shareholders was not to accept the offer.

· Viking Supply Ships refinanced the secured bank loan for the PSV fleet, by signing a new secured bank loan agreement of SEK 480 M maturing in 2016. The purpose of the refinancing was to extend the existing loan agreement and to facilitate the purchase of SBS Typhoon and Freyja Viking.

Viking Supply Ships

The first quarter saw an improvement in both sales and profit. The supply of AHTS vessels increased during the quarter in the North Sea, however, in comparison to the same quarter of 2013, price levels has increased substantially, while the utilization rate has remained stable. The PSV segment remained relatively stable during the quarter with respect to price levels, while the utilization rate increased. The services segment and the consultancy contracts entered into during the fourth quarter of 2013 are progressing as planned. The bareboat charter negotiations that Viking Supply Ships has been conducting for two AHTS newbuilds have come to a halt, without Viking Supply Ships entering into such an agreement. Viking Supply Ships has declared the purchase options regarding SBS Typhoon and Freyja Viking, with purchase dates in Q2 and Q4 2014 respectively. In addition, the previously communicated evaluation of a possible sale of the Viking Supply Ships PSV fleet has not been concluded.

Industrial Shipping

As in previous quarters, Industrial Shipping is still exposed to weak market conditions. The operational result for the first quarter improved, but is still far from satisfactory. Meanwhile, sales fell mainly as a result of operations being divested and closed down. Within the Container Feeder segment, the line and vessel capacity have been adapted to the market, which contributed to the improved result. Restructuring activities remain in focus with the close down of TransPal Line during the quarter, as well as ongoing divestments of associated office and terminal operations. Related activities in the first quarter include contracts entered into for the sale of TransAtlantic Spolka z.o.o. and Daugava Shipping Services SIA, which was also approved by the Annual General Meeting. In total, the restructuring efforts resulted in a headcount reduction of approximately 70 people.

The Group The Annual general Meeting approved the Board's proposed rights issue of SEK 148 MSEK to be conducted during the second quarter of 2014, in order to accelerate the restructuring process and implement additional efficiency, as well as to facilitate the split of the Group. The rights issue is fully guaranteed by the Company's principal shareholder Kistefos. The prospectus was published on May 5, and the subscription period runs from May 9 2014 to 27 May 2014.

Outlook

The market conditions for both the AHTS and PSV segments are forecasted to improve in the second quarter. In addition, the agreement that was signed in Q4 2013 with a major oil company for four AHTS vessels will commence in Q2 2014 with a positive contribution to Viking Supply Ships’ earning capacity. Viking Supply Ships also deems that the political situation in the Ukraine could lead to future threats to the company’s activities in Russia, although it is difficult to predict the consequences of potential reactions.

The market for Industrial Shipping is expected to remain weak in 2014 and the business is expected to contribute with a negative result for the year. Restructuring and efficiency efforts will continue and we expect to implement further cost savings to improve efficiency and increase competitiveness.

The same long-term objectives will apply as in the past – to create two independently strong operations with the right prerequisites to successful competition in their respective markets.

Press and analyst conference

Due to the publishing of TransAtlantic´s Interim report, a teleconference will be held for media, investors and analysts today 15 May at 10:00 am CET. Dial in details as follows:

Phone number: +46 8 50520424 or +47 2 156 3318

Password: TransAtlantic

Please dial in 5-10 minutes before the start of the conference.

In conjunction with the teleconference a presentation will be available on the Company´s webpage, www.rabt.se. Please be referred to Investor Relations/Presentations.

The interim report in its entirety is available on the company’s website www.rabt.se.

Rederi AB TransAtlantic is a leading Swedish shipping company with headquarters in Gothenburg, Sweden and additional offices in Europe. The company is organized into two business areas: Industrial Shipping and Viking Supply Ships. The company has about 780 employees and the turnover in 2013 was MSEK 2 925. The Industrial Shipping business area consists of three divisions: Container, RoRo and Bulk. The company’s B-shares are listed on the NASDAQ OMX Stockholm, Small Cap segment. www.rabt.se

TransAtlantic is obliged to make this information public according to the Financial Markets Act and/or the Financial Instruments Trading Act (Sw: lagen om värdepappersmarknaden and lagen om handel med finansiella instrument). The information was submitted for publication on May 15th 2014 at 08:30 am.

This information was brought to you by Cision http://news.cision.com