Preliminary Report 2007

Preliminary Report 2007

Broström AB (publ) - Reg. no. 556005-1467

• Extremely weak spot market during fourth quarter
- European and Atlantic traffic were adversely affected by an extremely weak
spot market, particularly during the first part of the quarter, due to lower
available volumes in the market.
- Asian traffic was also characterised by a very weak spot market, especially
during October and November. For the small size segment, capacity utilisation
under contracts remained high and contributed to stable development during the
quarter.

• Profit after net financial items for the year was SEK 450 m (580). This
includes capital gains on sales of vessels and operations and dissolution of
negative goodwill, together totalling SEK 131 m (126).
- Net sales were SEK 3,504 m (3,386, of which 96 pertained to sold
subsidiaries).
- Profit after tax was SEK 427 m (503).
- Earnings per share were SEK 6.50 (7.57).
- Return on capital employed was 9.8% (11.3%).

• Profit after net financial items for Q4 was SEK - 10 m (42). This includes
capital gains on sales of vessels and operations and dissolution of negative
goodwill, together totalling SEK 11 m (13).
- Net sales totalled SEK 844 m (802).
- Profit after tax totalled SEK - 5 m (38).
- Earnings per share were SEK - 0.05 (0.51).

• Proposed dividend of SEK 3.00 per share (SEK 4.00)
- The dividend corresponds to a dividend yield of 6.0% based on the closing
share price 2007.

• Surplus value of fleet, newbuilding contracts and call options on vessels
amount to a substantial sum
- External valuations show a value that exceeds the book value in the range of
SEK 2.7 billion.

• Cash flow and disposable liquidity January - December
- Cash flow per share was SEK 11.55 (13.05).
- Disposable liquidity amounted to SEK 993 m (1,110 on 31 December 2006).
- The dividend payout 2007 was SEK 258 m.

• Changes in the fleet
- At year-end the fleet consisted of 86 vessels and 16 newbuildings.
- The GAN-SWORD (17,000 dwt) and the GAN-SPIRIT (47,000 dwt), owned by
Broström's partner Dünya,
joined the fleet during the fourth quarter.
- A call option on the HUNTESTERN (37,000 dwt) was declared. The vessel is
wholly owned by Broström
as from December 2007.

• Outlook
The start of 2008 has been characterised by a volatile spot market, and the view
is that it will continue to be highly volatile from time to time. As a result of
investments and acquisitions carried out during the years, Broström has further
strengthened its position going into 2008 and forward. The underlying long-term
trend for Broström's market segment is predicted to be positive, even though
major fluctuations may occur from time to time.

Broström is one of the leading logistics companies for the oil and chemical
industry, focusing on industrial product and chemical tanker shipping and marine
services. Broström is based worldwide, with head offices in Göteborg, Sweden.