RELEASE OF ANNUAL REPORT, UPDATE ON DISCUSSIONS WITH LENDERS AND REVISION OF FINANCIAL CALENDAR.

Press release
As previously communicated, Viking Supply Ships A/S has been in discussions with
its lenders during the past months for the purpose of finding a long-term
financing solution. Viking Supply Ships AB announced on 2 May 2016 that it had
entered into an in principle agreement with its lenders, pending certain
conditions precedent. The dialogue is still not completed, but Viking Supply
Ships is confident that a restructuring will be completed within the foreseeable
future.

As previously communicated, the Annual General Meeting and the publication of
the Q1 2016 Financial report was postponed due to the prolonged negotiations
with the lenders. Viking Supply Ships AB´s Annual General Meeting will be held
on Thursday 30 June, 2016 at 13:30 p.m. at Mannheimer Swartling’s premises at
Östra Hamngatan 16 in Gothenburg, Sweden. The official notification will be
published on the company’s website and in Post- and Inrikes Tidningar no later
than four (4) weeks prior to the AGM. The Q1 2016 financial report will be
published on 10 June 08:30.

The group’s net sales decreased year-on-year to MSEK 1,977 (3,190). Net result
after tax was MSEK -440 (200). As previously communicated, the publication of
the Q1 2016 financial report was postponed due to the extended negotiations with
the Group’s lenders.

Quarter 1

  · Viking Supply Ships entered into a contract with an oil-major for the
charter of Brage Viking. The contract duration was for two and a half year, with
optional periods until June 2019.
  · In order to remain competitive and reduce costs the management of Viking
Supply Ships decided to close down the Aberdeen office with effect from July
2015. The change in the organization will reduce the overhead costs for the
segment and ensure that the financial solidity of Viking Supply Ships remains
strong.
  · The sale of the small bulk vessel TransForte was concluded in February. The
transaction brought positive cash effects of net MSEK 3 after repayment of
related ship loans.

Quarter 2

  · A new contract with an oil and gas company for Vidar Viking was entered into
and the vessel is firm until August 2016, with options to extend until February
2017. The contract value including options is estimated to MUSD 45.
  · A renewed seven year management contract of the state-owned icebreaker fleet
was entered into with the Swedish Maritime Administration.
  · A subsequent dividend of SEK 0.55 per share was concluded in June according
to resolutions on the Extraordinary General Meeting, totalling MSEK 98.
  · The company name was changed from Rederi AB Transatlantic to Viking Supply
Ships AB.
  · Christian W. Berg was appointed as the Group´s CEO in April and continues as
CEO of Viking Supply Ships A/S.
  · Niels J. Kindberg was appointed as interim Group CFO.

Quarter 3

  · The contract for Njord Viking was extended. The vessel is now firm to 31
December 2016, with options to extend the contract with 2 x 6 months. The total
value of the extended period is about MSEK 270 including optional periods.
  · As a response to the continued weak market conditions, VSS A/S initiated a
new Market Adaption Program (MAP), with the ambition to reduce yearly
operational costs with up to MSEK 70. This came as an addition to already
implemented yearly cost reductions of MSEK 45.
  · Ulrik Hegelund was appointed Chief Financial Officer in Viking Supply Ships
A/S as well as Viking Supply Ships AB with effect as of 1 September 2015.

Quarter 4

  · The sales of TransAtlantic Container AB and the ship management operations
were concluded during December and resulted in a positive book gain of MSEK 35.
  · Due to the challenging market conditions, VSS A/S has recognized an
additional impairment loss during Q4 of MSEK 77 related to the PSV fleet.
  · The deteriorated market conditions within the global oil and gas market have
continued to negatively impact the earnings and financial position of the Group.
The Group’s liquidity position is strained and in the current market, the Group
is unable to fulfil existing covenant undertakings in its loan agreements. A
solution with the Group’s lenders is necessary and accordingly, the Group,
during Q4 2015, initiated a dialogue with its lenders, with an ambition to
secure a long term stable financing solution within Q1 2016.
  · In December, an early termination of the contract for the AHTS Brage Viking
was received, but the vessel will remain on-hire to mid-August 2016. The
termination represents a loss of income during the remaining firm period of the
contract of MUSD 33 in 2016 and 2017.
    · Towards the end of the quarter, Tor Viking completed its contract with
Shell US. On its way back to the North Sea, the vessel transited the Northern
Sea Route unassisted, which had never been performed this late in the season
before.

For further information please contact:

Ulrik Hegelund, CFO, ph. +45 41 77 83 97, e-mail
ulrik.hegelund@vikingsupply.com

Morten G. Aggvin, IR & Treasury Director, ph. +47 41 04 71 25, e-mail
ir@vikingsupply.com

Viking Supply Ships AB (publ) is a Swedish company with headquarter in
Gothenburg, Sweden. Viking Supply Ships A/S is a subsidiary of Viking Supply
Ships AB (publ). In addition Viking Supply Ships AB (publ) has the subsidiary
TransAtlantic AB. The operations are focused on offshore and icebreaking
primarily in Arctic and subarctic areas as well as on Shipping services mainly
between the Baltic Sea and the Continent. The company has in total about 500
employees and the turnover in 2015 was MSEK 1,977. The company’s B-shares are
listed on the NASDAQ Stockholm, Small Cap segment. For further information,
please visit: www.vikingsupply.com

Viking Supply Ships AB 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 1 June 2016 at 08:30.