Trading volumes hit US$ 858 million - up 250%

Trading statistics summary - April 2007:

Activity split – April 2007:

CEO's view point:

“April continued the strong start to the year with a 250% rise in notional value of contracts traded. I am especially encouraged to see for the first time, we transacted more Atlantic clean tanker futures (TC2) than the amount of business done in the physical market. Also, volumes from our Asian business rose sharply as we strengthened our ties with Asian principals,” says IMAREX NOS’ Chief Executive, Tom Even Mortensen.

Tanker derivatives:

A total of 1 076 trades (1 321 trades in March) were concluded by members and OTC clients, up 106 % on the 522 trades concluded in the same period last year.

A total of 16 315 lots in tanker futures (16.3 million tons) were traded via IMAREX, up 120 % compared to the 7 410 lots traded in the same period last year. The notional value of tanker transactions at IMAREX was US$ 203 million (US$399 million in March), up 153 % from US$ 132 million traded in the same period last year.

Market review:

The spot market for Very Large Crude Carriers on the AG to Japan route (TD3) fell consistently through the first three weeks April, until finally taking an upswing in the last week with rates recovering much of the lost ground. The steady trend in the TD3 MAY07 contract indicated a strong belief in the upswing, but volumes remained low at just 3.8 million tons, equivalent to 14.7 full cargoes.

The clean tanker market saw massive activity in the TC2 Atlantic contract (37KT basis Rotterdam to New York) with 7.9 million tons traded in April, equivalent to 213 full cargoes. This is over 10 cargoes per day, which is more than what is traded in the physical Atlantic clean MR market. The spread between the MAY07 contract and the spot prompt narrowed from WS 100 to less than WS20 throughout the period.

Dry bulk derivatives:

Combined dry bulk volumes cleared at NOS and traded at IMAREX was 8 006 lots (where 1 lot is 1 day of time charter or 1000 metric tons of freight), up 158% from the 3 101 lots traded in April 2006. The notional value of contracts traded was US$317 million, up 268% compared the same period last year.

A total of 92 dry bulk derivatives transactions in April compares to 134 in March of 2007 and 41 transactions in the same period last year.

Market review:

The Panamax dry bulk market continued its record bull run with spot rates for prompt time charter reaching US$ 47 000 per day and the Q2 contract rallying ahead for most of the month to finish trading at US$46 500, a new all time high for Q2. A total of 5 107 days, equivalent to 14 years were traded via IMAREX and NOS during April, split over 59 transactions.

Bunker fuel oil derivatives:

The total number of fuel oil derivative transactions in April was 28. Volumes traded were 307 000 tons, up 56 % compared to April 2006. The total notional value of bunker fuel oil contracts traded at IMAREX and NOS in April rose 45% to US$93 million, up from US$64 million in the same month last year.

Market review:

The price of High Sulfur Fuel Oil rose by 13.5% during April with prompt spot prices for Rotterdam 3.5% sulfur barge delivery rising from USD295 per ton to USD334. The MAY07 contract remained backwardated to the spot (trading at a discount to the spot rate) though the period. The MAY07 vs JUN07 backwardation rose from 50 cents to and unusually high USD9 per ton at the end of April.

Freight options:

In April, a total of 44 IMAREX freight options (77 in March) accounting for 2 745 lots (12 892 in March) with a notional trade value of US$ 113 million were traded (US$268 million in March). Freight options accounted for 10 % of all contracts traded at IMAREX NOS, and 13 % of the notional value traded at the exchange.

Clearing and Open Interest

NOS cemented its leading position as the largest clearer of freight derivatives during April with strong growth in Open Interest for both Dry bulk and Tanker contracts, now at 93 722 lots overall.

New trading and clearing members:

IMAREX and NOS were pleased to welcome three new members in April. The total number of trading and clearing members at IMAREX and NOS is 167.

For more information, please contact:

• Tom Even Mortensen, Chief Executive Officer Tel: +47 2389 4222
• Arild Jæger, Chief Financial Officer Tel: +47 2389 4211