Report 1st quarter 2012

Green Reefers ASA
Consolidated report 1st quarter 2012

· Agreement regarding sale of shipowning companies
and management company
· Historically low rates and non-existing high season
· Operating income down with 29% compared with same
period last year
· EBITDA USD -9.5 mill (USD 3.4 mill) in the quarter
· Impairment loss assets USD 28 mill


Agreement regarding sales of subsidiaries

On 18 May Green Reefers announced an agreement with
Caiano AS regarding sale of 100% of the shares in the
Company's ship owning subsidiaries; Green Shipping
AS, Green Shipping 2 AS and Green Shipping 3 AS, as
well as sale of shares in companies related to the
operation undertaken by same companies. The purchase
amount will reflects the fair value of the companies,
including assets and debt, and will be determined by
an independent auditor. The purchase amount is
expected to be in the range of USD 3.5 mill. The
proceeds will be applied for settlement of debt
(including fulfilment of guarantee obligations). The
transactions will not provide free liquidity in
excess of what is required to close down the Company
in a prudent manner. The sale is not expected to give
substantial accounting effects.

The reefer market has been at historically low levels
since end of 2011. Combined with a non-existing high
season this year and high bunkers prices, the
majority of the Company's vessels have as a
consequence been trading at levels below operating
expenses. The Company has therefore been dependent on
further working capital financing in order to be able
to continue its operation. Prior to the agreement,
the Company undertook negotiations with banks
regarding such additional financing, however without
success. The Company has also explored financing
options in the equity market, but with a rather
negative market outlook for the industry, the
prospects of succeeding in achieving new financing at
viable conditions, were regarded as unlikely. Sale of
vessels has been considered as well, but with
available sale prices at scrap levels and well below
outstanding loans; such transactions would not
provide the required capital contribution.

In order to avoid an insolvency situation, the
Company entered into negotiations with its main
shareholder, and succeeded in reaching an agreement
as described above. The agreement implies that
operations in the subsidiaries continues under new
ownership, and thus secures the position of the
employees and creditors.

Following the execution of the abovementioned
transactions, the Company will be scaled down
significantly.


Results 1st Quarter 2012

The group experienced a pre-tax result of USD -36.1
mill in 1Q 2012 (USD -3.6 mill).

The net operating income was USD 16.4 mill in 1Q 2012
(USD 23.1 mill).

Operating result before depreciation (EBITDA) was
USD -9.5 mill (USD 3.4 mill).

Depreciations in the quarter are USD -3.6 mill (USD -
5.2 mill). In addition an impairment loss of USD 21
mill comprising the majority of the vessels is booked
in the quarter. The booked value of the vessels is
above the current selling prices obtainable in the
market if the vessels should be sold today. The write
down is a consequence of financial situation caused
by lack of further financing options, and value the
vessels equal to outstanding loans. For the same
reasons, an impairment loss of USD 2,4 mill is
recognised on spares and lub oil. The company has in
addition made a revaluation of a receivable given as
a sellers' credit in connection with a sale/lease
back transaction of two vessels in 2009. The
repayment of the sellers' credit was subject to
fulfilment of the company's obligations under a BB
charterparty, and has expired as a consequence of
lack of ability to fulfil the obligations under said
charterparty.

Unplanned technical off-hire (0.8%) was lower this
quarter compared to the same period last year (1.6%).
First quarter operational cost for the vessels was
USD 5,075 per day, also down compared with the same
period last year. One docking was finalized during
the quarter, the equal to the same period last year.


Activities

Green Reefers owns 20 vessels at the end of the
quarter. In addition, 10 vessels are hired on
bareboat and two vessels on time charter. The
commercial activities are carried out by Silver Green
AS (6 vessels), Seatrade Reefer Chartering N.V. (6
vessels) and Green Sea Pool N.V. (20 vessels).

The operation of the vessels will continue with
business as usual under the new ownership.


Finance and capital structure

Interest-bearing debt totals USD 105.5 as of 31 March
2012 (USD 147.1 mill). Of the group's debt, 84 % is
in USD and 16 % in EUR. Cash deposit was USD 3.3 mill
(USD 8.1) by the end of 1st quarter.

Booked equity 31 March 2012 was USD 3.0 mill (USD
66.3 mill). Equity ratio was 2.5% (25%).



The Market and prospects

The board regrets that that it has been impossible to
secure financing for continued operations of reefer
vessels. Subject to approval by the General Meeting
22 June of the transactions described initially, the
operations in the company will be scaled down
significantly. The board will consequently propose
for the General Meeting that authority to apply for
delisting of the company from Oslo Stock Exchange is
given.


Bergen, 31 of May 2012
Green Reefers ASA
The Board of Directors


Kristian Eidesvik
Aage Thoen
Birthe C. Lepsøe
Anne-Sofie Utne
Eivind Eidesvik

Contact: Toril Eidesvik (CEO), tel: +47 55 36 25 00
Øystein Disch Olsrød (CFO), tel: +47 55 36
25 00