STAR ReefersSTAR Reefers

Preliminary Results 2004

3rd March 2005

Preliminary 2005

Recent Reefer Industry DevelopmentsRecent Reefer Industry Developments

Market growth expected to exceed 3% p.a.

Spot rates for larger ships up 27% in 2004

Fruit majors looking for longer contracts

Operators entering medium term charters

Aggressive competition amongst operators

Container lines remain focussed on dry cargo

Competition for quality 2nd hand ships

Scrapping of 25 vessels or 6 million cbft in 2004

Mature fleet with only 4 newbuilding orders placed in 2004

Star well positioned to take advantage of this period of change

Preliminary 2005

Larger Vessel Rates in 2004Larger Vessel Rates in 2004

Timecharter spot rates for larger vessels

0

20

40

60

80

100

120

JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC

USC / CBFT

2001

2002

2004

2003

Source: Orion Shipping AS, Oslo

Source: Orion Shipping

Rates for larger vessels up 27% YoY in 2004

Preliminary 2005

Smaller Vessel Rates in 2004Smaller Vessel Rates in 2004

Source: Orion Shipping

Timecharter spot rates for smaller vessels

0

20

40

60

80

100

120

140

J AN FEB MAR APR MAY J UN J UL AUG SEPT OCT NOV DEC

2001

2002

2004

2003

Source: Orion Shipping AS, Oslo

Rates for smaller vessels up 13% YoY in 2004

Preliminary 2005

Are Rates Returning to 1997 Levels?Are Rates Returning to 1997 Levels?

REEFER 12 MONTHS ESTIMATED EARNINGSSize: 350-550.000 cbft vessel

30

35

40

45

50

55

60

65

70

75

80

85

19851986

19871988

19891990

19911992

19931994

19951996

19971998

19992000

20012002

20032004

2005

US

Cen

ts p

er c

bft

Source: Orion Shipping AS, Oslo

---- Conventional type - "old / new" ---- Modern high quality vessels

12 month rates up approx. 15% entering 2005

Preliminary 2005

Box Ships Busy Earning Good Money in Dry Box Ships Busy Earning Good Money in Dry ContainersContainers

- text -

6 – 12 month TC rates container ships (Source Carl Boch)

Preliminary 2005

Age Distribution of Reefer Fleet Age Distribution of Reefer Fleet (over 250 000 cbft)(over 250 000 cbft)

REEFER FLEET - VESSEL EXCESS OF 250.000 CBFT (% IN CBFT)

Upto 5 years2,98 %

>=30 years3,74 %

26-30 years10,15 %

21-25 years18,74 %

16-20 years19,18 %

11-15 years31,58 %

6-10 years13,62 %

Source: Orion Shipping AS, Oslo

236 mill. cbft. (548 ships) over 250 000 cbft

Preliminary 2005

Net Scrapping continues in a strong market... Net Scrapping continues in a strong market...

0

1

2

3

4

5

6

7

8

Mill cbft

1999 2000 2001 2002 2003 '2004

...but most of it is the older ”frozen” vessels.

Source Orion Shipping

Preliminary 2005

Reefer capacity continues to decline...Reefer capacity continues to decline...

Only 4 orders placed in 2004

REEFER VESSELS ORDERBOOK -VS- SCRAP

0

5

10

15

20

25

30

35

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

MILL CBFT

0

10

20

30

40

50

60

70

80

NO VSLS

ON ORDER (CBFT) SCRAP (CBFT)

ON ORDER (NO VSLS) SCRAP (NO VSLS)

Source: Orion Shipping AS, Oslo

Preliminary 2005

STAR Reefers Highlights 2004STAR Reefers Highlights 2004

Freight rates up some 17% STAR fleet values up 35%Sale of 2 ships generating profit of $ 4.8 millionContract renewals 2005 at levels up 15+%Equity infusion at NOK 83 per shareStrenghening balance sheet. 10 year Time Charters for 2 newbuildingsAcquisition of Regal Star

Preliminary 2005

Employment of Star Reefers Fleet 2004.Employment of Star Reefers Fleet 2004.

Time Charters

COA

Liner

Spot

Focus on Customer Relationships

Preliminary 2005

Star Reefers Revenue by Goods Carried 2004 Star Reefers Revenue by Goods Carried 2004

Bananas

Decidious

Citrus

Other

Focus on bananas

Preliminary 2005

Time Charter for Two NewbuildingsTime Charter for Two Newbuildings

Vessels to be built at Shikoku Yard in Japan

Delivery Q1 2006 and Q4 2006

Specialised Reefers of 585,000 cbft.High Speed

High container intake

Low bunker consumption

10 year duration of charters

STAR Reefers is committed to the reefer market long term

Preliminary 2005

.

# of Ships Capacity Average Average

(mill cbft.) Age Size

1 000 cbft.

Owned 17 8.4 15 493

Bare Boat Charter 6 3.2 13 540

Time Charter 13 7.2 11 555

Total Fleet 36 18.8 13 523

STAR Core FleetSTAR Core Fleet

Preliminary 2005

.

31-Dec-04 31-Dec-03

Net operating revenues 28.1$ 24.4$ 130.1$ 112.3$ Ships operating expenses -13.2 -13.3 -44.1 -43.7 Time charter hire -12.8 -8.4 -54.6 -41.9 Administrative expenses -0.3 -1.3 -1.7 -3.7 EBITDAR 1.8 1.4 29.7 23.0Bare boat charter hire -2.3 -1.7 -9.3 -6.3 Depr. and amortization -2.0 -2.8 -8.9 -9.4 Gain sale ships/subsidiary 0.2 4.6 5.2 6.1Operating profit -2.3 1.5 16.7 13.4Interest expense -1.0 -2.0 -4.4 -7.1 Other financial items 0.2 -1.2 0.1 -1.1 Net income -3.1 $ -1.7 $ 12.4$ 5.2$

EPS -0.36 $ -0.22 $ 1.47$ 0.67$

Profit & Loss AccountProfit & Loss Account

Preliminary 2005

.

31-Dec-04 31-Dec-03

Vessels 157.5$ 168.0$ Other fixed assets 5.6 6.8 Other current assets 14.6 18.0 Bank deposits 21.5 20.2 Total assets 199.2$ 213.0$

Equity 82.6$ 60.5$ Provisions - 0.2 Interest-bearing debt 99.4 130.1 Short term liabilities 17.2 22.2 Total equity and liabilities 199.2$ 213.0$

Equity ratio 41% 28%

Equity per share $9.72 $7.91

Balance SheetBalance Sheet

Preliminary 2005

.

2004 2003 2002 2001

Net operating revenues 130.1$ 112.3$ 109.0$ 85.5$ Ships operating expenses -44.1 -43.7 -41.6 -35.9 Time charter hire -54.8 -43.6 -45.4 -29.3 Provisions taken to income 0.2 1.7 4.0 7.1Administrative expenses -1.7 -3.7 -3.5 -3.5 EBITDAR 29.7 23.0 22.5 23.9Bare boat charter hire -9.3 -6.3 -0.3 Depr. and amortization -8.9 -9.4 -11.0 -11.5 Gain sale ships subsidiary 5.2 6.1 1.7 0.4Operating profit 16.7 13.4 12.9 12.8Interest expense -4.4 -7.1 -7.8 -10.3 Other financial items 0.1 -1.1 0.2 -0.5 Net income 12.4$ 5.2$ 5.3$ 2.0$

Profit & Loss AccountProfit & Loss Account

Preliminary 2005

.

# of % of

shares shares

Siem Industries 6,252,534 73.6%KLP Forsikting 184,200 2.2%Dieselgården 155,000 1.8%Odin Maritim 152,500 1.8%Caiano Ship + Caiano AS 146,400 1.7%Enskilda Securities 132,500 1.6%Skips AS Tudor 121,000 1.4%First Nordic 117,500 1.4%Other sharehoders 1,238,185 14.6%

Total 8,499,819 100.0%

Star Reefers Shareholders Star Reefers Shareholders February 2005February 2005

Preliminary 2005

Share Price Star Reefers 2004 Share Price Star Reefers 2004

Shareprice up 75% 12 months