1. The National Shipping Company of Saudi Arabia (NSCSA)
TANKERS
STRATEGY & ECONOMICS
Maritime Saudi Arabia 2010
1 June 2010
Humoud A. Al-Ajlan
CEO, NSCSA

2. CONTENTS Contents Slide Structure & Growth Strategy 2-4
Tanker Market Outlook 5
-Tanker Demand
-Tanker Supply
VLCC Earnings, Orderbook & Newbuilding prices 15
Current Tanker Owners 16
Tanker Owners’ Newbuilding 17
Tanker Outlook Summary

3. The National Shipping Company of Saudi Arabia
(NSCSA) 1

4. ORGANIZATION STRUCTURE
CHEMICAL
TRANSPORT
GENERAL
CARGO
IS ORGANIZED
IN 4 BUSINESS
UNITS
SHIP
MANAGEMENT
OIL and GAS
OIL & GAS 2

5. PROFITABLE OPERATION
SAR Millions 3

6. CONSOLIDATED TOTAL ASSETS
SAR Millions 4

7. Tanker Market Outlook 5

8. (Early Release) December 2009, McQuilling Estimates
TANKER DEMAND
Oil Demand Recovery
Recent forecasts suggest 1.23 million barrels per day increase in 2010 over 2009
2008 demand levels will not be exceeded until 2011 but…
Recent IEA estimates an increased demand in 2010 based on improved IMF outlook (+1.6 million barrels per day)
Source: IEA Oil Market Report, November 2009 & February 2010, US EIA AEO
(Early Release) December 2009, McQuilling Estimates 6

9. VLCC still dominates on ton-mile basis
TANKER DEMAND
Crude 2009 Tanker Demand
Non-
Seaborne
Transport,
42.8%
Panamax,
3.3%
VLCC,
20.7%
Suezmax,
12.3%
Aframax,
21.0%
57.2% of tons of crude and residual product cargo demand transported by tankers
This marine fraction is slowly increasing with time
2009 marked the first year more cargo was transported by Aframax tankers than VLCCs
Aframax 898 million tons
VLCC 878 million tons
Balance 20 million tons
1,407 billion ton-miles
5,666 billion ton-miles
(4,259) billion ton-miles
VLCC still dominates on ton-mile basis 7

10. TANKER DEMAND Crude Tanker Demand
Trading patterns for VLCCs are evolving from a West-centric to East-centric configuration - This effect impacts on tanker supply, not demand measured in tons, due to longer transport distances given this shift in the crude supply origin
Percent Change
2009 trade routes +/- % vs. 2008 8 10

11. TANKER DEMAND Crude Tanker Demand- VLCC
Looking forward: A change in the trade routes for VLCC tankers indicates that only limited future increases from long-haul trades due to limits on increased production (e.g. from Venezuela, Mexico, N.Sea. Russia to the East)
Analysts suggest that the crude oil tanker sectors will remain demand challenged for the next few years - expected ton-mile demand growth to average about 1.5% annually
VLCC: 1.9% SUEZ: 1.2% AFRA: 1.2% PANA: 1.5% 9 11

12. TANKER SUPPLY Tanker Orderbook Contracting (All Tankers)
After a record peak in contracting of new tankers in 2008, new build orders have declined.
New orders effectively ceased during the first part of 2009.
Overall, a total of 112 orders for tankers 27,500 Dwt and above were recorded in 2009 compared to 270 in 2008, a decline of 64%.
Q ship yards have lowered prices and are again attracting orders. 10 12

13. Two successive year with record deliveries
TANKER SUPPLY
Tanker Orderbook
Deliveries
Two successive year with record deliveries 11 13

14. TANKER SUPPLY Tanker Orderbook Deliveries
The total order book is estimated at 899 tankers of 27,500 Dwt and above (excluding chemical carriers)
This orderbook are being built in 65 shipyards, with Korean, Chinese and Japanese yards comprising 90% of the orders
Korean shipyards hold just over half of tanker orders; Chinese yards 22% and Japanese yards 16%
Estimates for VLCC deliveries, project only a small number of cancellations and incorporate current assumptions on delivery delays 12 14

15. VLCC Additions & Removals
TANKER SUPPLY
VLCC Additions & Removals
Current fleet 529 ships
41 VLCC remaining to deliver 2010 some “slippage”/delays expected into 2011.
84 SH VLCCs still trading while scrapping and removals of SH VLCCs have intensified in 2010 and could balance deliveries.
A massive delivery of 86 new builds for 2011.
Poor freight markets in 2011 would accelerate recycling of remaining SH VLCCs. However, impact of removal of remaining SH ships is expected to have minor impact on freight markets.
McQ 13

16. Other Supply Factors TANKER SUPPLY
Oil storage has occupied (removed from trading) between ships – current May/2010 figures suggest 30 ships employed in storage including 18 NITC ships
Contango priced oil markets drive increases in VLCC employed for floating storage – we anticipate this trend to continue to occur in 2010
High fuel prices reduce fleet performance speed reducing supply of ships 14 16

17. Record number of ships ordered
VLCC EARNINGS, ORDERBOOK & NB PRICES
Price $Mn
Numbers Vessel
Rate $/Day
Record number of ships ordered
at record prices
VLCC Newbuilding Price USD Mn
Orderbook Number
VLCC Average Earnings $/Day 15

18. CURRENT TANKER OWNERS Number of owners Total Ships Clarksons May 201016

19. TANKER OWNERS’ NEWBUILDING26 6 15 16 3
Current Owners
Clarksons May 2010
New Owners
Total Ships 17

20. TANKER OUTLOOK – SUMMARY
Shock of the financial crisis is fading but tanker freight markets are
nervous.
Fleet capacity is rising sharply with only mild recovery of oil
Demand.
Freight “crisis” easing but asset “crisis" not over yet.
Financial stress on owners, banks, and ship yards has caused
increasing downward pressures on asset prices.
Asset prices have turned upwards recently on recovery of freight
markets and speculative buyers attracting IPO public market investors. 18

21. TANKER OUTLOOK – SUMMARY
The period likely to be dominated by “Net Fleet Growth” picture and the negative influence of growing tonnage supply across most tanker sectors.
As a result of tonnage supply exceeding demand, we expect rates in most sectors to soften from 2010.
Operating returns would be further eroded if bunker oil prices continue to increase.
Call on OPEC oil production increases beyond 2011 and year-on-year demand growth suggests earnings will return by to positive results. 19

22. The National Shipping Company of Saudi Arabia
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