REPORT 3RD QUARTER 2008

RESULTS
Belships' operating income in Q3 amounted to USD 22,569,000 (Q3 2007:
USD 15,323,000). The company's operating result amounted to USD
7,459,000 (USD 2,720,000). The increase in operating income is
related to Elkem Chartering's handysize operations and includes
recognition of USD 3.5 million in income received in connection with
the cancellation of a charter party.
The result after tax for Q3 amounted to USD 5,024,000 (USD
2,060,000).
The result after tax for the first three quarters of the year
amounted to USD 13,366,000 (USD 11,996,000).
The accounts for the period 1 January to 30 September have been
prepared in accordance with IAS 34 Interim Financial Reporting. The
information in the interim report provides a correct picture of the
company's and the group's assets, liabilities, financial position and
result as a whole, and provides a corrective overview of the
information listed in the Norwegian Securities Trading Act, section
5-6, subsection four.
 
ACTIVITIES
Rates in the dry cargo market fell significantly through the whole
quarter. Many actors believed this was a temporary phenomenon linked
to the holding of the summer Olympic Games in China. However, the
increasingly expanding financial crisis combined with the delivery of
a large number of newbuildings and converted tankers have revealed a
structural imbalance in the market.
The handysize operations in Elkem Chartering delivered good results.
The supramax vessels M/S Pax Phoenix and M/S Legend Phoenix continued
their charter parties without any significant operational
interruptions.
The vessels managed by Belships itself, M/T Belaia and M/S Belisland,
also worked on their respective charter parties. M/S Belisland was
off hire for about a week due to a periodic dry-docking.
 
FINANCIAL AND OTHER MATTERS
As per 30 September the group's liquidity holdings amounted to USD
47.0 million compared with USD 50.7 million as per 30 June. A new
instalment of USD 8.1 million was paid in July for the company's
newbuildings. USD 47.3 million of the total contract obligation of
USD 195.8 million has now been paid.
At the close of Q3 the company had USD 20.0 million in liabilities
relating to bridging finance for the newbuildings. Belships also had
bond loan of NOK 100 million (USD 17.0 million). The loan is subject
to currency hedging and had an unrealised hedging gain amounting to
USD 1.3 million as per 30 September. The amount is recognised in the
balance sheet under other fixed assets.
Belships' liquidity situation allows it to fully finance the vessel
that will be delivered in 2009 with equity. The company will hold
back on the long-term financing of the newbuildings until conditions
in the credit market have normalised.
At the close of Q3 the booked value per share was NOK 13.67, while
the booked equity ratio was 52.3%.
 
OUTLOOK
After 5 years of record earnings in the dry cargo market it now
appears that the so-called super cycle has come to an end. This was
expected given the large order book for newbuildings, but the
financial crisis has accelerated the fall in rates. The rates have
also continued to fall strongly in Q4 as a result of the major
financing problems in world trade and a likely recession.
The handysize operations in Elkem Chartering will also be affected by
the market's fall and the results for Q4 will be weaker, among other
things as a result of the fact that Pax Phoenix's charter party has
been extended until the middle of 2009 at a reduced rate.
 
Oslo, 30 October 2008
 
The Board of BELSHIPS ASA
 
This announcement was originally distributed by Hugin. The issuer is 
solely responsible for the content of this announcement.