Key figures_nøkkeltall. Contents_innhold:

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1 Annual Report/Årsrapport 2011

2 Key figures_nøkkeltall (USD 1000) (USD 1000) From consolidated accounts Fra konsernregnskapet Contents_innhold: Key figures/nøkkeltall 3 The Year Shareholders information 6 The Ships 8 Directors Report 11 Statement of comprehensive income_oppstilling av totalresultat 16 Statement of financial position_oppstilling av finansiell stilling 17 Cash flow statement_group/kontantstrømoppstilling_konsern 18 Equity _Group/egenkapitaloppstilling_konsern 19 Notes_Group/noterkKonsern 20 Statement of comprehensive income_asa/oppstilling av totalresultat_asa 52 Statement of financial position_asa/oppstilling av finansiell stilling_asa 53 Cash flow statement_asa/kontantstrømoppstilling_asa 54 Notes_ASA/noter_ASA 54 Auditor s report/revisjonsberetning 66 Corporate Governance 70 Året Aksjonærinformasjon 73 Årsberetningen for Selskapsstyring 77 STATEMENT OF COMPREHENSIVE INCOME OPPSTILLING AV TOTALRESULTAT Operating income Driftsinntekter Operating result before Driftsresultat før av- og Depreciation (EBITDA) (6 118) (7 834) nedskrivninger (EBITDA) Operating result (25 334) (47 116) Driftsresultat Net finance incl. profit (loss) on exchange (6 767) (6 515) Netto finans inkl. agio (disagio) Unrealized profit (loss) on exchange Urealisert agio (disagio) Profit (loss) before taxes (30 723) (52 543) Resultat før skattekostnad Profit (loss) for the year from continued operation (30 768) (52 601) Årets resultat videreført virksomhet Profit (loss) for the year (26 952) (52 921) Årets resultat STATEMENT OF FINANCIAL POSITION OPPSTILLING AV FINANSIELL STILLING Non-current assets Anleggsmidler Current assets Omløpsmidler Total assets Sum eiendeler Equity Egenkapital Non-current liabilities Langsiktig gjeld Current liabilities Kortsiktig gjeld Total equity and liabilities Sum egenkapital og gjeld KEY RATIOS, PER SHARE NØKKELTALL PR. AKSJE Share price year-end (NOK) 0,35 2,00 Børskurs pr. 31. desember (NOK) Profit (loss) per share (USD) (0,02) (0,04) Resultat pr. aksje (USD) Diluted profit (loss) per share (USD) (0,02) (0,04) Utvannet resultat pr. aksje (USD) 3 Green Reefers is a specialist logistic service provider for chilled and frozen products. We provide our clients with rational logistic solutions at competitive terms and prices.

3 The year The operation profit (EBITDA) was USD -6,1 mill compared with USD -7.8 mill in Running cost was reduced with 7 percent and shows positive trend. Establishment of GreenSea Pool for commercial and operational activities for 20 of the company's vessels with effect from Termination of Hamburg Reefer Pool at the same time. Sale of four fully owned vessels for demolition during the year. Sale of one vessel in which the company had 25% ownership. Renewal of TC contracts for two vessels. Sold the terminal activity. Sales of 6 vessels to the company's major shareholder with agreement of leaseback on bareboat-charterparties for a period of 7 years. Agreement with company's mortgage banks regarding postponement of installments until December

4 Shareholders information SHAREHOLDER POLICY Green Reefers' aim is to provide competitive long-term return to its shareholders. The return on capital is a combination of share price performance and dividends paid. The return should reflect the long-term financial development of the company. Annual dividends should normally represent per cent of the group s profit after tax. The company recorded a loss in 2011 and the Board of Directors has therefore not proposed payment of any dividend for INVESTOR INFORMATION Green Reefers has focus on the importance of shareholders receiving relevant and objective information about the company. The company aims to give the shareholders a good understanding of its activities and prospects, allowing them to evaluate the share's trading price and underlying values. Information is provided primarily through quarterly reporting, annual reports and investor presentations.. All reports and press releases, together with a description of the company and its activities, are available on the company's website, Green Reefers share has through 2011 been listed on OB Match. 16th of December the share was moved to OB standard as the average numbers of trades were less than 10 per day. SHAREHOLDERS AND VOTING RIGHTS The company had 2,238 registered shareholders at the end of Norwegian shareholders owned 98.6 per cent. The corresponding figures at the end of the previous year were 2,363 shareholders and 98.5 per cent ownership by Norwegian shareholders. All shares have equal voting rights. FINANCIAL CALENDAR Annual General Meeting 18 April 2012 First quarter accounts 11 May 2012 Second quarter accounts 24 August 2012 Third quarter accounts 2 November 2012 Fourth quarter accounts 22 February SHARE ISSUES AND CURRENT AUTHORISATIONS 7 At the General Meeting in April 2011, the Board of Directors was authorised to increase the share capital by issuing new shares. A total increase of MNOK 89,9 was authorised. Subscription terms and price will be decided by the Board of Directors, and the authorisation is valid until the next General Meeting to be held by 30 June 2012 at the latest. The board has not yet used this authorisation. The Board of Directors was further authorised to buy treasury shares with a nominal value of up to MNOK The price per share shall be no less than NOK 1,00 and no more than NOK 4,00. The authorisation remains valid to 30 June The board has not yet used this authorisation. SHARE PRICE AND LIQUIDITY TRENDS The share price closed on 31 December 2011 at NOK 0.35, compared with NOK 0,05 one year earlier, however, the number of shares was 40 times higher in A reversal split of the numbers of shares 40:1 was approved by the Annual General Meeting 29th of April 2011 with the result of 40 old shares being converted to one. Converted share price of the new number of shares would have been NOK 2,00 at the end of The change in share price during 2011 represents a decrease of approximately 83%. Green Reefers has one single class of shares. As of 31 December 2011 the share capital consisted of shares with a nominal value of NOK 2.00 per share. Based on the year-end share price of NOK 0.35 the company has market capitalisation of NOK 30.8 mill, corresponding to USD 5.1 mill.

5 The ships FLEET OF SPECIALISED REEFERS VESSEL OWNERSHARE BUILT SIZE (CUFT) SRP Seatrade Reefer Pool Green Brazil 100 % ,723 Green Honduras 100 % ,723 Green Chile BB ,723 Green Costa Rica BB ,723 Green Guatamala BB ,723 Green Italia BB ,723 SG SilverGreen Green Frost 100 % ,200 Green Ice 100 % ,200 Green Bergen 100 % ,000 Green Tromsø 100 % ,000 Green Lofoten TC ,620 Alma TC ,620 GSP GreenSea Pool Green Ocean 100 % ,262 Green Klipper 100 % ,262 Green Cooler 100 % ,770 8 Green Karmøy 100 % ,770 9 Green Selje 100 % ,770 Green Glacier 100 % ,258 Green Nova 100 % ,589 Green Explorer 100 % ,714 Green Concordia 100 % ,020 Green Toledo 100 % ,020 Green Magic 100 % ,395 Green Magnific 100 % ,395 Green Maveric 100 % ,395 Green Music 100 % ,395 Green Austevoll BB ,770 Green Bodø BB ,770 Green Crystal BB ,770 Green Egersund BB ,770 Green Freezer BB ,770 Green Måløy BB ,770

6 Directors report turned out yet another disappointing year for Green Reefers. As a result of historical low spot rates during second half of 2011, revenue declined significantly compared to previous period. Operating costs and non-scheduled off-hire saw a reduction compared to previous year. Net loss before tax from continuing operations for Green Reefers, the Consolidated Group or the Group, is USD 30,8 million (2010; USD 50,6 million), and Net Loss After Tax is USD 27,0 million (2010; USD 59,9 million). Continuing operation consist of the former Shipping Segment as the Terminal Segment was sold during Operating costs for the fleet of vessels were reduced 19% during 2011 as a result of the sale of 5 vessels during the first 6 months combined with continuing focus on cost reducing measures. Average operating costs per day in 2011 was USD (2010; USD 5 500). The spot rates did show a positive trend at the beginning of the year, but fell in late spring and was at record low levels throughout the fall. It was anticipated that high scrapping of reefer vessels, in the range of cubic during the first part of 2011, would provide for an improved balance in the market during the fall. However the market experienced a loss of fruit-freights for the larger reefer vessels leaving a surplus of vessels impacting the freight rates during the year. The negative trend has also been further magnified by record price levels of bunkers in 2011 which, only to a minor degree, have been possible to transfer to customers, as the customers themselves also have experienced market deterioration. The competition from container vessels have continued to be a challenge and the combination of overcapacity, aggressive pricing and the establishing of line services in traditional reefer trades, has resulted in further loss of market share for operators of reefer vessels RESULTS The margin for the Consolidated Group s continuing operation in 2011 was USD 67,5 million (2010; 84,9 million). This margin represents the differential between gross freight and voyage related costs. Within voyage related costs are bunkers, agent fees, port costs and similar types of costs As the Consolidated Group, since the summer of 2010, have been running its vessels through various pool-arrangements, all voyage related costs are charged to its respective pools and cannot be derived directly from the Financial Statements. Terminal segment. The Consolidated Group s net cash flow was negative USD 5,9 million (2010; positive USD 0,5 million). The Parent Company, Green Reefers ASA or the Company, had a Net Loss of NOK 205,3 million (2010; NOK 338,3 million). It is proposed to transfer an equivalent amount from the Share Premium Reserve to Retained Earnings after which the Company s Retained Earning as of December 31, 2011 will be NOK Nil (2010; NOK Nil). The Board of Directors are not aware of any subsequent events that impact the Consolidated Group s Financial Position and Result of Operations for the year ended December 31, 2011, except as already stated within this Annual Report. DESCRIPTION OF BUSINESS Over the last two years the Green Reefers have changed from being a fully integrated shipping company to a supplier of tonnage to operators of specialized reefers. The operation and chartering for the majority of the ships are handled by companies in which Green Reefers owns direct interests, thus the Consolidated Group has kept an indirect influence over this. The technical management continuously to be handled through a 100% owned subsidiary in Poland. The Terminal Segment was sold in March 2011 for USD 12 million. After outsourcing the commercial activity, this segment was no longer part of the core activity for the Consolidated Group. At the time of sale the Terminal Segment consisted of 2 fully owned and 3 partly owned terminal facilities in Norway and the Baltic. The acquirer was the Company s largest shareholder, Caiano AS. As a result of this, the sale was debated and approved at the Annual Shareholders Meeting on April 29, In early 2011, a vessel, in which the Group held a 25% interest, was sold. In addition four wholly owned vessels were sold for recycling during the first six months of the year. Towards the end of 2011 additional six vessels were sold to the Company s largest shareholder with a seven year lease-back arrangement on bareboat charters. This transaction was approved at an extraordinary general meeting on October 20, The Net Operational Loss, from continuing operation, before depreciation (EBITDA) for 2011 is USD 6,1 million (2010; USD 7,6 million). The Terminal segment was sold during the first quarter of 2011 and the segment held for sale contributed USD 0,2 million (2010; 0,2 million). The Net Operating Loss (EBIT) was USD 25,2 million in 2011 (2010; USD 47,1 million), out of which the Terminal Segment contributed USD Nil (2010; USD 0,4 million). Net cash outflow from operation was USD 10,4 million compared to USD 15,3 million in Cash flow from investing activities contributed USD 48,6 million (2010; cash outflow of 3,9 million), and for 2011 it consisted mainly of the sale of ships, the sale of the Terminal Segment and dry-docking. The cash outflow from financing activities in 2011 was USD 44,1 million (2010; USD 19,7 million), which was mainly a result of the repayment of debt linked to vessels sold and the sale of the By the end of 2011 the Group controlled a fleet of 32 vessels of which 20 are wholly owned and 12 are leased. 10 of the leased vessels are on bareboat charters and 2 on time charters. On October 31, 2011, the Group entered into an agreement with the Seatrade group establishing the joint venture, GreenSea Pool, in which the Group has a 50% interest. GreenSea Pool commenced its operation on January 1, 2012 and has a fleet of 45 vessels, ranging in sizes up to cubic feet. 20 of these vessels are controlled by Green Reefers. The joint venture is continuing a large part of the activities that formerly resided with Hamburg Reefer Pool. The agreement with Hamburg Reefer Pool was terminated by end of By the end of 2011, the vessels controlled by Green Reefers are operated as follows: SilverGreen (50% owned by Green Reefers): The Groups 6 smallest vessels (four wholly owned and 2 leased on time charters) are

7 leased to SilverGreen on time charters. SilverGreen then charters and operates these vessels. In total SilverGreen operates 14 vessels, with its largest level of activity linked to the transportation of pelagic fish from Norway and Iceland. GreenSea Pool (50% owned by Green Reefers): Charters and operates 20 of the Groups vessels (14 wholly owned and 6 leased on bareboat charters). GreenSea Pool operates a total of 45 vessels ranging from to cubic feet. Its main activity is the transportation of frozen goods, particularly fish, but also large amounts of fruit. Seatrade Reefer Pool: Charters and operates the Groups 6 largest vessels all in the range of cubic feet (2 wholly owned and 4 leased on bareboat charters). Their main activity being transatlantic transportation of fruit. REEFER MARKET IN 2011 AND OUTLOOK Total volume of transported refrigerated and frozen goods has Work-arrangements in the Group are linked to positions and are been increasing; however the shift away from conventional reefer independent of gender. vessels to operators of containers has continued resulting in a decrease in the volume transported by conventional reefers. The The objective of the Discrimination Act is to promote gender impact is a market not yet in balance despite an increased level The operational risk relates to the day to day operation of the equality, to ensure equal rights and opportunities, and to prevent of scrapping. The overcapacity of container vessels is expected vessels. Exposure includes damage or injuries to personnel, Based on the above, the Board of Directors confirms that the discrimination due to ethnicity, national origin, descent, skin color, to lead to continuing pressure on the reefer rates in the year to equipment and the environment as well as changes in the level Financial Statements have been prepared using the going concern language, religion and believes. The Group is actively working in come. This will be especially noticeable for the larger vessels. The of operating expenses. This will be affected by the quality of the assumption. a determined and systematically way to encourage the promotion market for smaller reefers are less impacted by container vessels, assets and the infrastructure in which it operates. The Group is of the act s purpose within its organization. Including therein are however they are impacted by the fact that larger reefer vessels, also exposed to fluctuations in the price of bunker lead by changes FINANCE AND CAPITAL MANAGEMENT recruiting, salary, working conditions, promotion, opportunities to 12 in the price of oil. develop and protection against harassment. 13 at an increasing rate, are competing on cargo intended for smaller vessels. During vessels, the equivalent of 15 million cubic feet, were scrapped. This represents a net reduction in capacity of approximately 5,7%. In 2010 the equivalent was 44 vessels representing 17,6 million cubic feet. With the increase cost of bunkers and an aging fleet it is expected that 2012 also will see high level of scrapping. In addition to the increased competition from container vessels 2011 saw a decrease in production of many goods which traditionally has been transported by conventional reefers. This has particularly been noticeable for seafood, where the important squid season by the Falkland Island for its third year in a row had low volumes. Seafood, including fish, is the largest and most important group of goods for Green Reefers. Reduction in quotas in Norway and outside the West Coast of Africa contributed to a declining demand in 2011 compared to Despite the fact that Russia did remove its ban on import of American chicken towards the end of 2010, there has been a significant reduction in the quotas compared to previous years which in addition has not been fully utilized. It is expected that 2012 will see the quotas for seafood and chicken at the same levels as in has started with record low levels in the spot market, and the market for conventional reefers is expected to be challenging in the year to come. The economic development in the world, in particularly in Europe, has significant impact on the volume of refrigerated goods being imported which again impacts the volume transported. The price of oil and bunkers further impacts the margins (particularly for long distance transportation), and given the weak market it is difficult to transfer the increasing costs to the customers. Toppling this with the aggressive competition from operators of container vessels influencing the volume and the rates for operators of reefers, the stage is set for challenging time. The Company still hope that the market will improve in line with normal seasonal fluctuations and that the balance between supply and demand will somewhat improve throughout 2012, as a result of high level of scrapping. RISK MANAGEMENT AND SENSITIVITY It is the goal of Green Reefers, within its set strategy, to create values for its shareholders by exploring the commercial opportunities that provide the best yield in relation to the risk involved. To achieve this, the Group, to the extent possible, seeks to reduce its exposure to financial and operational risks. The Group aims to have a portfolio consisting of contracts that provide stability, predictability and balanced spot activity. In recent years it has proven difficult to obtain long term contracts at acceptable rates. Strategically the Group adapts to this by means of pool arrangements, which to some extent counteracts market trends. The Group is adequately insured for its operation which includes insurance for hull and machinery, loss of hire and liability insurance. The Group is exposed to interest rate fluctuations, primarily relating to its non-current debt. 1% change in the interest rate will impact the Consolidated Net Income by USD 1 million. For % of the Group's revenue was derived in USD, which is also its presentation currency. Approximately 70% of the operating expenses and finance expenses derived in USD, with the remaining part being mostly EUR, NOK and PLN. Consequently the currency exposure for the Group is considered moderate and is partly offset by means of hedging. The Group s debt arrangements includes covenants requiring a minimum level of liquidity at specified dates (refer to note 17 in the Financial Statement for more details). As of December 31, 2011, the Group s cash balance was USD 8,1 million. The general reefer market is influenced by crop harvest, fish and seafood quotas and export restrictions resulting from plant- and animal diseases as well as political decisions. A change in earning of 10 cents per cubic foot will impact the Group s annual Consolidated Net Income with approximately USD 10 million. The risk of losses on receivables is considered low, and is partly out of the Group s control, given that receivables mainly are through the pool arrangements and companies performing on behalf of the Group. GOING CONCERN Going forward the Company expects that, despite the aggressive actions in the market from operators of container vessels, there will still be a need for conventional reefer vessels. This will particularly be the case when it comes to transportation of fish. This market is mainly served by smaller vessels within the Company s segment. The Company s vessels are in good technical condition compared against the world fleet and they are relative cost efficient. Green Reefer executed a sale and lease-back arrangement for six of its vessels during fourth quarter of 2011 which provided the Company with USD 12 million of increased liquidity. At the same time changes were made in the lending arrangements with the Group s financial institutions, providing among other, a delay in payment of principals until November 30, If the rates in the market continues throughout 2012, at the levels seen at the end of 2011, the Company, at some point in the year, will be in need of additional financing. Financing can be obtained through sale of assets, issuing of shares in the market or through additional loan arrangements. The Group has good relations with its financial institutions and expects that if needed, a solution by virtue of one or a combination of the methods indicated will be found. The cash balance as of December 31, 2011 and 2010 was USD 8,1 and 13,4 million, respectively. Interest bearing debt totaled USD 105,0 and 149,6 million, respectively. 84% of the Group s mortgage loans in USD and 16% in EUR. At the Annual General Meeting on April 29, 2011, the Board of Directors was given the approval to increase the share capital through issuance of shares. The Board was also given the authority to repurchase own shares for a total nominal value of NOK 17,8. The lowest and highest amount approved for repurchase per share is NOK 1 and NOK 2, respectively. To date the Group has not repurchase own shares. The authorization is valid until the next Annual Shareholders Meeting April 18, We refer to a separate section concerning shareholder information in the Annual Report. Book value of equity as of December 31, 2011 and 2010 was USD 39,2 and 67,7 million, respectively, representing approximately 25% of total assets. Short term debt was USD 12,6 and 18,7 million, respectively, representing approximately 11% of total debt. HUMAN RESOURCES AND THE ENVIRONMENT Green Reefers seeks to conduct its business in accordance with high safety, quality and ethical standards. Continuous training of personnel on ships and ashore is a key part of this. The Group views positively the development of stricter international guidelines for the industry in which it conducts its operation and is pro-acting in adapting to changes in these guidelines. Bergen, 6th March 2012 The Board of It is the view of the Board of Directors that the working environment within the Group, aboard ships and on land, is satisfactorily. Sick leave for seafaring personnel was 2,1% (2010; 2,0%) and 3,2% (2010; 6,7%) for the land based employees, of which short term leave constituted 1,2% (2010; 1,0%) and long term leave 2,0% (2010; 5,97%). During 2011 a total of 6 (2010; 5) work related accidents resulting in lost time were registered, all of which were among seafarers. There is a continuous focus on preventive measures to reduce employee injuries. There are equal opportunities for men and women within Green Reefers and the Group has traditionally recruited employees to its head office from markets where men and women are equally represented. As of December 31, 2011, the Group had sailors (2010; 928), 20 employees at its head office in Bergen (2010; 25), of which 9 (2010; 10) are women. The Group also has 38 (2010; 38) employees in the office in Gdynia and 1 (2010; 1) in Ålesund. The Group is aiming to be an employer who does not discriminate based on physical functionality and who actively facilitate a work environment accessible and user friendly to as many as possible. For existing and future employees with physical disabilities individual solutions and responsibilities will be implemented. Employees of Green Reefers are recruited from the maritime environment throughout the world. The majority of its employees are currently from Russia, Poland, Ukraine, the Philippines and Norway. During 2011 the Group had two occurrences in which Freon was emitted and three smaller oil emissions. SUBSEQUENT EVENTS The GreenSea Pool joint venture with Seatrade group commenced its operation on January 1, 2012, chartering and operating 20 of the Groups vessels. We refer to description included above under description of business. CORPORATE GOVERNANCE We refer to a separate section in the Annual Report. Kristian Eidesvik Aage Thoen Anne-Sofie Utne Birthe Cecilie Lepsøe Eivind Eidesvik Toril Eidesvik Chairman of the Board Deputy Chairman Managing Director

8 STATEMENT FROM BOARD OF DIRECTORS We confirm, to the best of our knowledge, that the statement of accounts for 2011 has been prepared in accordance with IFRS and the Norwegian Accounting Act. The annual report for 2010 gives a true and fair view of the Group s and the Company s assets, liabilities, financial position and income and a fair review of the information required under the Norwegian Securities Trading Act section 5-6 fourth paragraph. ERKLÆRING FRA STYRET Vi bekrefter herved at årsrapporten for 2011, etter vår beste overbevisning, er utarbeidet i samsvar med IFRS og den norske Regnskapsloven. Årsrapporten gir et godt bilde av foretakets og konsernets eiendeler, gjeld, finansielle stilling og resultat, og gir et rettvisende oversikt mht opplysningene nevnt i Verdipapirhandelslovens 5-6 fjerde ledd. Bergen, 6th March 2012 The Board of / Styret i Kristian Eidesvik Aage Thoen Anne-Sofie Utne Birthe Cecilie Lepsøe Eivind Eidesvik Toril Eidesvik Chairman of the Board Deputy Chairman Managing Director 14 15

9 Statement of comprehensive income_oppstilling av totalresultat (USD 1000) Notes Statement of financial position_oppstilling av finansiell stilling (USD 1000) Notes OPERATING INCOME DRIFTSINNTEKTER Gross freight income Brutto fraktinntekter Net Pool income Netto poolinntekt TC-hire TC-hyre 16 Other income Andre inntekter Net profit on sale of fixed assets Netto gevinst ved salg av anleggsmidler Operating income, in total Sum driftsinntekter OPERATING COSTS DRIFTSKOSTNADER Voyage related costs Reiseavhengige kostnader Vessel operating costs Driftskostnader skip TC-hire TC-hyre 16 Bareboat-hire Bareboat-hyre 16 Other operating costs Andre driftskostnader Operating costs, in total Sum driftskostnader 3 Operating result before Driftsresultat før avdepreciation (EBITDA) og nedskrivninger (EBITDA) Depreciation Avskrivinger 8 Write-downs/reversal write-downs Nedskrivinger/reversering nedskrivinger 8 OPERATING RESULT (EBIT) DRIFTSRESULTAT (EBIT) FINANCIAL INCOME AND FINANSINNTEKTER OG FINANCIAL COSTS FINANSKOSTNADER NON-CURRENT LIABILITIES LANGSIKTIG GJELD Profit and loss from JV and ass. Companies a.o Andel resultat tilknyttet selskap m.v. 7 Deferred tax 0 88 Utsatt skatt 5 Interest and other financial income Rente- og andre finansinntekter Mortgage loans Pantegjeld 9 Profit (loss) on exchange Agio (disagio) Other non-current liabilities Annen langsiktig gjeld 4 Unrealized profit (loss) on exchange Urealisert agio (disagio) Non-current liabilities, in total Sum langsiktig gjeld Interest and other financial costs Rente- og andre finanskostnader Financial items, in total Sum finansposter 15 PROFIT (LOSS) BEFORE TAXES RESULTAT FØR SKATTEKOSTNAD Taxes Skattekostnad 5 Profit (loss) from continued operation Resultat av videreført virksomhet Profit (loss) from discontinued operation Resultat av avhendet virksomhet Profit on sale of discontinued operation Gevinst v/avhendelse av virksomhet ASSETS EIENDELER NON-CURRENT ASSETS ANLEGGSMIDLER Vessels Skip 8,9 Terminals Terminaler 8,9 Other equipment Andre driftsmidler 8 Shares in associated and joint venture companies Aksjer i tilknyttede og felleskontrollerte selskaper 7 Other shares 6 37 Andre aksjer og andeler Other non-current receivables Andre langsiktige fordringer 11 Non-current assets, in total Sum anleggsmidler CURRENT ASSETS OMLØPSMIDLER Trade receivables Kundefordringer 9,14 Inventories Beholdninger Other current receivables Andre fordringer 14 Cash and cash equivalents Bankinnskudd 9,13 Current assets, in total Sum omløpsmidler ASSETS, IN TOTAL SUM EIENDELER EQUITY AND LIABILITIES EGENKAPITAL OG GJELD EQUITY EGENKAPITAL Paid up equity Innskutt egenkapital Own shares Egne aksjer Non-controlling interests Minoritetsinteresser Equity, in total Sum egenkapital CURRENT LIABILITIES KORTSIKTIG GJELD Suppliers Leverandørgjeld Public duties a.o Skyldige offentlige avgifter m.v. Shares in associated and joint venture companies Aksjer i tilknyttede og felleskontrollerte selskaper 9 Other current liabilities Annen kortsiktig gjeld 12 Current liabilities, in total Sum kortsiktig gjeld EQUITY AND LIABILITIES, IN TOTAL SUM EGENKAPITAL OG GJELD PROFIT (LOSS) FOR THE YEAR ÅRETS RESULTAT Other comprehensive income: Innregnede inntekter og kostnader: Foreign currency translation Omregningsdifferanse COMPREHENSIVE INCOME TOTALRESULTAT Result attributable to: Non-controlling interests (discontinued operations) Andel resultat til minoritet Owners of the Company (continued operations) Andel resultat til majoritet 18 Profit (loss) per share (0,02) (0,04) Resultat pr. aksje Diluted profit (loss) per share (0,02) (0,04) Utvannet resultat pr. aksje Bergen, 6th March 2012 Bergen, 6. mars 2012 The Board of Styret for Kristian Eidesvik Aage Thoen Anne-Sofie Utne Birthe Cecilie Lepsøe Eivind Eidesvik Toril Eidesvik Chairman of the Board Deputy Chairman Managing Director

10 Cash flow statement_kontantstrømoppstilling (USD 1000) Notes OPERATIONS OPERASJONELLE AKTIVITETER Proceeds from operating revenue Innbetalinger av driftsinntekter Payments for operating costs (53 003) ( ) Utbetalinger for driftskostnader Payments to employees Utbetalinger til ansatte, arbeidsgiverand social security (34 719) (40 434) avgift og forskuddstrekk Payments from interest income Renter mottatt Payments of interest and other financial costs (6 186) (8 160) Renter betalt Net cash flow Netto kontantstrøm fra from operations (1) (10 360) (15 345) operasjonelle aktiviteter INVESTMENTS INVESTERINGSAKTIVITETER Sale of vessels and equipment Salg av varige driftsmidler Investment in vessels and equipment (6 485) (7 138) Investering i varige driftsmidler Investments in joint ventures (4) (1 564) Investering i felleskontrollert virksomhet Investments in assosiated companies 16 (17) Investering i tilknyttede selskap Dividend 96 - Utbytte Loans to assosiated companies - (770) Utlån til tilknyttede selskap Changes in other investments Endring i andre investeringer Net cash flow Netto kontantstrøm fra from investments (2) (3 860) investeringsaktiviteter Equity_egenkapitaloppstilling Paid up Own Other Minority equity shares equity interests Total Innskutt Egne Annen Minoritets- (USD 1000) egenkapital aksjer egenkapital interesser Sum Notes Equity 31/ (180) Egenkapital 31/ Reduction of capital - Kapitalnedsettelse Rights issue - Rettet emisjon Other items 3 (247) (244) Andre poster Comprehensive income (28 294) (5) (28 299) Totalresultat Equity 31/ (180) Egenkapital 31/ Equity 31/ (180) Egenkapital 31/ Reduction of capital (49 948) Kapitalnedsettelse Rights issue Rettet emisjon Other items (46) (926) 60 Andre poster Comprehensive income (1 659) - (50 980) 57 (52 582) Totalresultat Equity 31/ (180) Egenkapital 31/ FINANCING FINANSIERINGSAKTIVITETER Loans Opptak av lån Repayment of loans (50 174) (15 986) Nedbetaling av lån Share issues Emisjoner 18 Dividend - - Utbytte 19 Net cash flow Netto kontantstrøm fra from financing activities (3) (44 174) finansieringsaktiviteter NET CASH FLOW NETTO ENDRING I KONTANTSTRØM FOR THE YEAR (1+2+3) (5 877) 463 GJENNOM ÅRET (1+2+3) Profit (loss) due to exchange rate Effekt av agio på fluctuations on cash likviditetsbeholdningen Discontinued operations_avhendelse av virksomhetsområde CASH AND CASH EQUIVALENTS 1/ BANKINNSKUDD 1/1 CASH AND CASH EQUIVALENTS 31/ BANKINNSKUDD 31/12 The terminal activity was previously reported as own segment. The segment was sold 1st quarter 2011 and the effect in the consolidated financial statement is shown in the table below: Terminalvirksomheten er tidligere rapportert som eget segment. Virksomheten ble avhendet i første kvartal 2011, og effekten i konsernregnskapet er vist i tabellen under: (USD 1000) Notes INCOME STATEMENT OPERASJONELLE AKTIVITETER Terminal income Terminalinntekter Terminal costs Terminalkostnader Depreciation Avskrivninger Profit & loss from associated companies Andel resultat tilknyttet selskap Interest and other financial costs Rente- og andre finanskostnader Taxes 0-67 Skattekostnad Profit (loss) from discontinued operations Resultat av avhendet virksomhet CASH FLOW STATEMENT KONTANTSTRØMOPPSTILLING Net cash flow from operations Netto kontantstrøm fra operasjonelle aktiviteter Net cash flow from investments 0 0 Netto kontantstrøm fra investeringsaktiviteter Net cash flow from financing Netto kontantstrøm fra finansieringsaktiviteter Net cash flow Netto endring i likvider

11 Notes to the financial statements_noter til regnskapet NOTE 1 ACCOUNTING POLICIES GENERAL INFORMATION Green Reefers ASA is the parent company in the Group and is domiciled in Norway, with office address Ulsmågveien 7, 5224 Bergen. The company s consolidated financial statements for the 2011 financial year covers Green Reefers ASA and its subsidiaries and the Group s shares in associates as shown in notes 6 and 7. BASIS OF PREPARATION The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) and interpretations developed by the IFRS Interpretations Committee (IFRICs), as adopted by the EU. The IFRS principles have been applied consistently for 2011 and The consolidated financial statements have been prepared on a historical cost basis, except for certain financial instruments which are measured at fair value. IAS 34 INTERIM FINANCIAL REPORTING Additional requirements cover disclosure of changes to fair value measurements (if significant), and the need to update relevant information from the most recent annual report. New, revised, and amended standards and interpretations in issue but not yet effective Upon approval of these consolidated financial statements the following new, revised, and amended standards, which might have an effect on future financial statements, have been issued but are not yet effective. They have not been approved by the EU, and the group has not chosen early application of any of them. The groups management have not considered the potential effect on future consolidated financial statements. IFRS 9 FINANCIAL INSTRUMENTS (2009) The complete new standard will replace existing IAS 39 in different steps. For the time being new requirements for classification, measurement, and derecognition of financial assets and liabilities are in issue. However the standard has not yet been endorsed by the EU. The consolidated financial statements have been prepared on a going IFRS 9 krever at alle innregnede finansielle eiendeler som faller inn concern basis. NYE, REVIDERTE, OG ENDREDE REGNSKAPSSTANDARDER OG FOR- under omfanget til gjeldende IAS 39, skal måles enten til amortisert TOLKNINGER ANVENDT FRA 2011 IFRS 9 requires all recognised financial assets that are within the kost eller til virkelig verdi. Spesielt gjelder at investeringer i gjeldsinstrumenter NEW, REVISED, AND AMENDED STANDARDS AND INTERPRETATIONS Konsernet har tatt i bruk følgende nye, reviderte, og endrede regnskapsstandarder scope of IAS 39 to be subsequently measured at amortised cost or fair som holdes med formål å motta kontraktsmessige kon- APPLIED IN 2011 og fortolkninger i Dette har ikke hatt vesentlig value. Specifically, debt investments that are held within a business tantstrømmer, og hvor disse kontantstrømmene i sin helhet utgjøres The Group has applied the following new, revised, and amended effekt på konsernregnskapet for model whose objective is to collect the contractual cash flows, and av betaling av renter samt tilbakebetaling av hovedstol, skal måles til standards and interpretations in These applications have not that have contractual cash flows that are solely payments of principal amortisert kost. Alle andre gjelds- og egenkapitalinstrumenter skal had material implication on the consolidated financial statements for IFRS 7 FINANSIELLE INSTRUMENTER OPPLYSNINGER (ENDRET) and interest on the principal outstanding are generally measured at måles til virkelig verdi. the year ended 31 December Endringene medfører økte krav til opplysninger vedrørende overføring amortised cost. All other debt investments and equity investments 20 av finansielle eiendeler. are measured at their fair values. 21 IFRS 7 FINANCIAL INSTRUMENTS: DISCLOSURES (AMENDED) The amendment involves an increased level of disclosures regarding transfers of financial assets. IAS 24 RELATED PARTY DISCLOSURES (REVISED 2009) The revised standard clarifies and simplifies the definition of a related party and removes the requirement for government-related entities to disclose details of all transactions with the government and other government-related entities. Information about related parties is disclosed in note xx to the financial statement. ANNUAL IMPROVEMENTS TO IFRSS 2010 As a result of the annual improvement process the IASB made amendments to seven standards and interpretations. Amendments which are, or might be, relevant for the group, but which do not have a material effect on the consolidated financial statements for 2011 are: IFRS 7 FINANCIAL INSTRUMENTS - DISCLOSURES These amendments simplify some disclosure requirements related to financial assets and credit risk, including the financial effect of collateral held as security. IAS 1 PRESENTATION OF FINANCIAL STATEMENTS The amendment to IAS 1 clarifies that an entity may choose to disclose an analysis of other comprehensive income by item in the statement of changes in equity or in the notes to the financial statements. IAS 27 CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS The amendment states that loss of control over a subsidiary, loss of significant influence over an associate, and loss of joint control over a jointly controlled entity should all be recognised and measured at fair value, and any gain or loss should be recognised in the profit or loss. NOTE 1 REGNSKAPSPRINSIPPER GENERELL INFORMASJON Green Reefers ASA er morselskap i konsernet og hjemmehørende i Norge, med kontoradresse Ulsmågveien 7, 5224 Bergen. Selskapets konsernregnskap for regnskapsåret 2011 omfatter Green Reefers ASA med datterselskaper, og konsernets andeler i tilknyttede selskaper som vist i note 6 og 7. RAMMEVERK FOR REGNSKAPSAVLEGGELSE Konsernregnskapet er avlagt i samsvar med Internasjonale Standarder For Finansiell Rapportering (IFRS), og fortolkninger fra IFRS fortolkningskomité (IFRIC), slik disse er fastsatt av EU. IFRS prinsippene er konsistent anvendt for 2011 og Konsernregnskapet er utarbeidet på grunnlag av historisk kost, med unntak av enkelte finansielle instrumenter som vurderes til virkelig verdi. Konsernregnskapet er avlagt under forutsetningen om fortsatt drift. IAS 24 OPPLYSNINGER OM NÆRSTÅENDE PARTER (REVIDERT 2009) Den reviderte standarden tar bort det detaljerte opplysningskravet for offentlig eide virksomheter om transaksjoner med staten og andre offentlig eide virksomheter. Videre inneholder den reviderte standarden en klargjøring og forenkling av definisjonen av nærstående parter. Opplysninger om nærstående parter er gitt i note xx til konsernregnskapet. FORBEDRINGSPROSJEKT 2010 IASBs årlige forbedringsprosjekt for 2010 medførte endringer til syv standarder/fortolkninger. Øvrige endringer som er, eller kan bli, relevante for konsernet, men som ikke har noen vesentlig virkning på konsernregnskapet i 2011, er: IFRS 7 FINANSIELLE INSTRUMENTER - OPPLYSNINGER Endringene innebærer forenkling av opplysningskrav knyttet til finansielle instrumenter og kredittrisiko, herunder effekten av eiendeler stillet som sikkerhet. IAS 1 PRESENTASJON AV FINANSREGNSKAP Endringen av IAS 1 avklarer at et foretak kan velge å gi opplysninger om enkeltelementer som inngår i innregnede inntekter og kostnader enten i egenkapitaloppstillingen, eller i note til finansregnskapet. IAS 27 KONSERNREGNSKAP OG SEPARAT FINANSREGNSKAP Endringen innebærer at frafall av kontroll over et datterselskap, frafall av betydelig innflytelse over et tilknyttet selskap, og frafall av felles kontroll over et felleskontrollert foretak skal måles likt, til virkelig verdi, og at en gevinst eller et tap skal innregnes i resultatoppstillingen. The most significant effect of IFRS 9 regarding the classification and measurement of financial liabilities relates to the accounting for changes in the fair value of a financial liability attributable to changes in the credit risk of that liability. Specifically, under IFRS 9, for financial liabilities that are designated as at fair value through profit or loss, the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that liability is presented in other comprehensive income (unless the recognition of the effects of changes in the liability's credit risk in other comprehensive income would create or enlarge an accounting mismatch in profit or loss). Under IAS 39, the entire amount of the change in the fair value of the financial liability designated as at fair value through profit or loss is presented in profit or loss. IFRS 10 CONSOLIDATED FINANCIAL STATEMENTS (2011) IFRS 10 replaces the parts of IAS 27 Consolidated and Separate Financial Statements that deal with consolidated financial statements. Under IFRS 10, there is only one basis for consolidation, that is control. IFRS 10 includes a new definition of control, and provides extensive guidance to deal with complex scenarios. IFRS 11 JOINT ARRANGEMENTS (2011) This new standard replaces IAS 31 Interests in Joint Ventures. IFRS 11 deals with how a joint arrangement of which two or more parties have joint control should be classified. Under IFRS 11, joint arrangements are classified as joint operations or joint ventures, depending on the rights and obligations of the parties to the arrangements. Joint ventures under IFRS 11 are required to be accounted for using the equity method of accounting. IFRS 12 DISCLOSURE OF INTERESTS IN OTHER ENTITIES (2011) This new disclosure standard is applicable to entities that have inter- IAS 34 DELÅRSRAPPORTERING Nye krav gjelder opplysninger om endringer i virkelig verdi målinger (dersom betydelig), og behovet for å oppdatere relevant informasjon i forhold til den siste årsrapporten. NYE, REVIDERTE, OG ENDREDE REGNSKAPSSTANDARDER OG FOR- TOLKNINGER SOM IKKE ER TRÅDT I KRAFT Ved vedtak av dette finansregnskapet er de følgende standarder og fortolkninger utgitt av IASB, men har ikke trådt i kraft for regnskapsåret De er ikke EU-godkjent ved avleggelse av konsernregnskapet, og det er ikke valgt tidlig anvendelse av dem. Ledelsen har ennå ikke vurdert den potensielle effekten av innføring av disse nye, reviderte, og endrede standardene og fortolkningene. IFRS 9 FINANSIELLE INSTRUMENTER (2009) Den nye standarden vil erstatte gjeldende IAS 39 gjennom i flere trinn. Foreløpig er nye bestemmelser for klassifikasjon, måling, og fraregning, av finansielle eiendeler og finansielle forpliktelser vedtatt. Den vesentligste endringen i IFRS 9 knyttet til klassifisering og måling av finansielle forpliktelser knytter seg til regnskapsføring av endringer av virkelig verdi som skyldes endringer i kredittrisiko knyttet til instrumentet. Spesielt under IFRS 9 er at slike verdiendringer på instrumenter som måles til virkelig verdi over resultatet, skal skilles ut og føres mot utvidet resultat (med mindre en slik innregning i totalresultat vil medføre eller styrke en regnskapsmessig mismatch i resultatoppstillingen). Under gjeldende IAS 39 skal en verdiendring av et finansielt instrument til virkelig verdi over resultatet i sin helhet innregnes i resultatoppstillingen. IFRS 10 KONSERNREGNSKAP (2011) IFRS 10 erstatter de deler av IAS 27 Konsernregnskap og separat finansregnskap som omhandler konsernregnskapet. I IFRS 10 finnes bare ett grunnlag for konsolidering, nemlig kontroll. IFRS 10 inkluderer også en ny definisjon av kontrollbegrepet, og gir omfattende veiledning for komplekse tilfeller. IFRS 11 FELLESKONTROLLERT VIRKSOMHET (2011) Den nye standarden erstatter IAS 31 Andeler i felleskontrollert virksomhet. IFRS 11omhandler klassifisering av felleskontrollerte ordninger mellom to eller flere parter. I samsvar med IFRS 11skal felleskontrollerte ordninger klassifiseres enten som felleskontrollert drift eller felleskontrollert foretak, avhengig av partenes rettigheter og forpliktelser knyttet til ordningen. Felleskontrollert virksomhet skal etter IFRS 11 regnskapsføres etter egenkapitalmetoden. IFRS 12 NOTEOPPLYSNINGER OM INVESTERINGER I ANDRE ENHETER (2011) Denne nye standarden inneholder krav til opplysninger fra foretak som har investeringer i datterselskaper, felleskontrollert virksomhet, tilknyttede selskap og/eller andre selskaper som ikke blir konsolidert. Disse opplysningskravene er generelt mer omfattende enn de som foreligger i gjeldende standarder.

12 ests in subsidiaries, joint arrangements, associates and/or unconsolidated structured entities. In general, the disclosure requirements in IFRS 12 are more extensive than those in the current standards. IFRS 13 FAIR VALUE MEASUREMENT (2011) IFRS 13 establishes a single source of guidance for fair value measurements and disclosures about fair value measurements. The Standard defines fair value, establishes a framework for measuring fair value, and requires disclosures about fair value measurements. The scope of IFRS 13 is broad; it applies to both financial instrument items and nonfinancial instrument items for which other IFRSs require or permit fair value measurements and disclosures about fair value measurements, except in specified circumstances. IAS 19 EMPLOYEE BENEFITS (REVISED 2011) The amendments to IAS 19 change the accounting for defined benefit plans and termination benefits. The most significant change relates to the accounting for changes in defined benefit obligations and JOINT VENTURES plan assets. The amendments require the recognition of changes in A joint venture is a contractual agreement whereby the Group and OMREGNING AV FREMMED VALUTA defined benefit obligations and in fair value of plan assets when they other parties undertake an economic activity that is subject to joint Funksjonell valuta og presentasjonsvaluta occur, and hence eliminate the 'corridor approach' permitted under control. Joint venture arrangements that involve the establishment of Konsernet presenterer sitt regnskap i USD, mens morselskapets the previous version of IAS 19 and accelerate the recognition of past a separate entity in which each venture has an interest are referred to presentasjonsvaluta er NOK. Den funksjonelle valuta til de enkelte service costs. The amendments require all actuarial gains and losses as jointly controlled entities. The group reports its interests in jointly enheter i konsernet er den valuta som i hovedsak benyttes i to be recognised immediately through other comprehensive income controlled entities using the equity method of accounting. de økonomiske omgivelser som enheten opererer i. Morselskapets in order for the net pension asset or liability recognised in the consolidated KONSOLIDERINGSPRINSIPPER funksjonelle valuta er NOK. statement of financial position to reflect the full value of the DATTERSELSKAPER FOREIGN CURRENCY TRANSLATION plan deficit or surplus. Konsernregnskapet omfatter Green Reefers ASA og selskaper der FUNCTIONAL CURRENCY AND PRESENTATION CURRENCY TRANSAKSJONER OG BALANSEPOSTER Green Reefers ASA har kontroll. Kontroll foreligger der konsernet har The Group presents its financial statements in USD, while the parent Transaksjoner i fremmed valuta omregnes til den funksjonelle BASIS OF CONSOLIDATION SUBSIDIARIES The consolidated financial statements incorporate the financial statements of Green Reefers ASA, and entities controlled by Green Reefers ASA. Control is achieved where Green Reefers ASA has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities, generally accompanying a shareholding of more than one half of the voting rights. The Group uses the acquisition method of accounting to account for business combinations. Companies that are acquired during the year are consolidated from the date control was obtained. Inter-company transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. NON-CONTROLLING INTERESTS Non-controlling interests are included in the Group s equity. Noncontrolling interests consist of their share of the carrying value of subsidiaries including the share of identified excess value at the date of acquisition. Transactions with non-controlling interests are treated as transactions with equity owners of the group. ASSOCIATES Associates are all entities over which the Group has significant influence but not control, generally accompanying a shareholding of between 20 and 50 % of the voting rights. Investments in associates are accounted for using the equity method of accounting, and are initially recognized at cost. The Group s share of its associates income or other comprehensive IFRS 13 MÅLING AV VIRKELIG VERDI (2011) IFRS 13 etablerer en enkelt kilde for veiledning for måling av, og opplysninger om, virkelig verdi. Standarden definerer virkelig verdi, etablerer et rammeverk for måling av virkelig verdi, og krever opplysninger om virkelig verdi målinger. Standarden favner vidt; den omfatter både finansielle instrumenter og ikke finansielle eiendeler og forpliktelser hvor andre IFRSer krever eller tillater virkelig verdi måling, samt opplysningskrav om måling av virkelig verdi, kun med enkelte unntak. IAS 19 YTELSER TIL ANSATTE (REVIDERT 2011) Endringene av IAS 19 gjelder krav til regnskapsføring av ytelsesbaserte pensjonsordninger og sluttvederlagsordninger. Den mest betydelige endringen knytter seg til regnskapsføring av endringer i pensjonsforpliktelser og pensjonsmidler i ytelsesbaserte ordninger. Endringen medfører krav om innregning av endring i pensjonsforpliktelser og virkelig verdi av pensjonsmidler i slike ordninger når endringene oppstår, og tar følgelig bort korridorløsningen som er tillatt etter gjeldende versjon av IAS 19, samt fremskynder regnskapsføringen av kostnader ved tidligere perioders pensjonsopptjening. Nye krav er at alle aktuarmessige gevinster og tap skal innregnes umiddelbart i utvidet resultat for at netto pensjonsmidler eller pensjonsforpliktelse i balansen skal reflektere full verdi av pensjonsordningen. makt til å utforme enhetens finansielle og operasjonelle retningslinjer, normalt gjennom eie, direkte eller indirekte, av mer enn 50 % av stemmeberettiget kapital i selskapet. Oppkjøpsmetoden er brukt ved regnskapsføring av virksomhetssammenslutninger. Selskaper som er kjøpt i løpet av året er konsolidert fra tidspunktet kontroll oppnås. Konserninterne transaksjoner, mellomværender og urealisert fortjeneste og tap mellom konsernselskaper elimineres. Regnskapene til datterselskapene omarbeides når dette er nødvendig for å oppnå samsvar med konsernets regnskapsprinsipper. IKKE-KONTROLLERENDE EIERE Ikke-kontrollerende eiere (minoritet) i datterselskaper inngår i konsernets egenkapital. Bokført verdi av minoritetsinteresser består av deres andel av balanseført verdi av datterselskaper, herunder andel av identifiserte merverdier på oppkjøpstidspunktet. Transaksjoner med ikke-kontrollerende eiere i datterselskaper behandles som egenkapitaltransaksjoner. TILKNYTTEDE SELSKAPER Tilknyttede selskaper er selskaper hvor konsernet har betydelig innflytelse. Betydelig innflytelse foreligger normalt der konsernet har en eierpost på mellom 20 og 50 % av stemmeberettiget kapital. Tilknyttet selskap regnskapsføres på kjøpstidspunktet til anskaffelseskost, og deretter anvendes egenkapitalmetoden. Konsernets andel av henholdsvis resultat og utvidet resultat i tilknyttede selskaper er regnskapsført på egne linjer i henholdsvis resultatregnskapet og i det utvidede resultatregnskapet, og tillagt balanseført verdi av investeringen. Konsernet resultatfører ikke andel av underskudd dersom dette medfører at balanseført beløp av investeringen blir negativ, med mindre konsernet har pådratt income is recognized on separate lines in the income statement or the statement of other comprehensive income respectively. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. When the group s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the group does not recognize further losses, unless it has incurred obligations on behalf of the associate. In the statement of financial position associates are presented as noncurrent assets. Unrealised gains on transactions between the group and its associates are eliminated to the extent of the group s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been changed where necessary to ensure consistency with the policies adopted by the group. company's presents its financial statements in NOK. The functional currency of the consolidated entities in the Group is the currency of the primary economic environment in which the entity operates. The parent company has NOK as functional currency. TRANSACTIONS AND BALANCES Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement within financial income and financial costs. GROUP COMPANIES For consolidation purposes the assets and liabilities of the subsidiaries with a different functional currency than USD are translated at the rate of exchange prevailing at the end of the reporting period. Income and expense items are translated at the average exchange rates for the period or the exchange rates at the dates of the transactions. Translation differences are recognized in other comprehensive income and accumulated in equity. When a subsidiary with a different functional currency is disposed of, wholly or partly, the accumulated translation difference in respect of that subsidiary is reclassified to profit or loss in the same period that the gain or loss from the disposal is recognized. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS The preparation of financial statements requires the management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets and liabilities, income and expenses. These estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable, the results of which form seg forpliktelser på vegne av det tilknyttede selskapet. I balansen fremkommer bokført verdi av investeringen som anleggsmiddel. Konsernets andel av urealisert fortjeneste på transaksjoner mellom konsernet og dets tilknyttede selskaper elimineres. Det samme gjelder for urealiserte tap med mindre transaksjonen tilsier en nedskriving av den overførte eiendelen. Der det har vært nødvendig er regnskapene til de tilknyttede selskapene endret for å oppnå samsvar med konsernets regnskapsprinsipper. FELLESKONTROLLERTE FORETAK Felleskontrollert virksomhet er en kontraktsmessig avtale der konsernet og andre parter påtar seg en økonomisk aktivitet som er underlagt felles kontroll. Felleskontrollert virksomhet som innebærer at det opprettes et eget foretak som hver av deltakerne har en andel i er referert til som felleskontrollerte foretak. Konsernet regnskapsfører investeringer i felleskontrollerte foretak etter egenkapitalmetoden. valutaen til transaksjonskurs. Realisert valutagevinst eller tap ved oppgjør av slike transaksjoner, og omregning av pengeposter i fremmed valuta til kursen på balansedagen, resultatføres netto på egen linje i resultatregnskapet under finansinntekter og finanskostnader. KONSERNSELSKAPER For konsolideringsformål er eiendeler og gjeld for datterselskaper med annen funksjonell valuta enn USD omregnet til balansedagens kurs Resultatregnskapet er omregnet til gjennomsnittkurs, eller til transaksjonsdagens kurs. Omregningsdifferanser føres over utvidet resultat, og akkumuleres som en egen post i egenkapitalen. Ved hel eller delvis avhendelse av datterselskap med annen funksjonell valuta blir akkumulert omregningsdifferanse knyttet til datterselskapet omklassifisert til resultatregnskapet i samme periode som gevinsten eller tapet ved avhendelsen regnskapsføres. VIKTIGE REGNSKAPSESTIMATER OG VURDERINGER Utarbeidelse av finansregnskap krever at ledelsen gjør vurderinger og estimater, og tar forutsetninger som påvirker anvendelsen av regnskapsprinsipper og regnskapsførte beløp på eiendeler og forpliktelser, inntekter og kostnader. Estimater og tilhørende forutsetninger er basert på historisk erfaring og andre faktorer som anses rimelige. Disse beregningene danner grunnlaget for vurdering av balanseført verdi for eiendeler og forpliktelser som ikke kommer klart frem av andre kilder. Faktisk resultat kan avvike fra disse estimatene. Estimater og de underliggende forutsetninger vurderes løpende. Endringer i regnskapsmessige estimater regnskapsføres i den perioden endringene oppstår, dersom de kun gjelder denne perioden. Dersom endringene også gjelder fremtidige perioder, fordeles effekten over inneværende og fremtidige perioder. Estimater og vurderinger ledelsen har gjort, som representerer en betydelig risiko for vesentlige endringer i balanseført verdi av eiendeler