Contents Filosofa y Operacin

Introduction

Philosophy and Operation

Activities

The Fleet

Corporate Structure

Juan Sebastin Elcano

Juan Sebastin Elcano (Guetaria 1476-1526) was the first navigator to complete a circumnavigation of the Earth. In 1519 he joined the expedition organized by Emperor Charles V comprising five ships under the command of the Portuguese navigator Ferdinand Magellan. The aim of the expedition was to prove the existence of a westward route to the Moluccas. They discovered the westward passage in Patagonia, calling it the Strait of Magellan, and three of the ships succeeded in sailing through it with great difficulty into the Pacific. Ferdinand Magellan died in a fight with the natives of the Marianas in April 1521 and Juan Sebastin Elcano took command of the expedition. After losing a further two ships, the surviving ship, "Victoria", set sail for Europe under command of Elcano via the Cape of Good Hope. It reached the Spanish port of Sanlcar de Barrameda on 6 September 1522 with 17 surviving crew members. In recognition of this achievement, Charles V awarded Elcano and his descendants an augmentation to his coat of arms, with the inscription "Primus circundedisti me".

Introduction

E mpresa Naviera ELCANO, S.A., was established in 1942 by the Spanish Government and was privatized
in 1997. Since its launching, ELCANO has owned and operated a fleet of 240 ships, from sail training schooners to VLCCs, general cargo ships, reefers, tankers, product carriers, LNG and all types of bulkcarriers. ELCANO has completed its more than 60 years of history with a recognised prestige as a shipowner and operator and an excellent reputation as a reliable carrier. Presently ELCANO is the largest bulk shipping group in Spain and operates an owned fleet of 20 vessels totalling 1.9 m dwt. ELCANO is committed to the safe and high quality operation of ships with special emphasis on the protection of the martitime environment and to meeting the maritime transport requirements of our clients to their complete satisfaction. The management of ELCANO is devoted to further developing and improving the expertise and skill acquired by the Company during its more than 60 years experience in serving the major industrial groups such as the power generation sector, aluminium producers, steel mills, cement producers, mining companies and oil majors. Behind these achievements lies the effort of the thousands of people, both at sea and ashore, who have struggled to make ELCANO a well respected name in the international shipping business, ranking as the leading Spanish and Brazilian carrier of dry bulk cargoes. ELCANO's most valuable asset is its professional and experienced staff who take care of the efficient and well maintained fleet of crude oil and product tankers, LNG ship and bulkcarriers owned by its group of companies, as well as other chartered-in tonnage. Until recently, ELCANO was basically a benchmark company in the Spanish shipping industry. But now, the company has embarked on a process of diversification and international expansion, entering out both into new sectors, such as product/chemical tankers, LNG, and into new areas. As regards its geographical expansion, ELCANO is now established in South America, with subsidiaries in Argentina and Brazil, where through its office in Rio it has become the largest Brazilian flagged shipping company of large bulkcarriers.

Philosophy and Operation

T he main philosophy of the ELCANO group, as a shipowner and operator, is to meet the marine transport
requirements of well established charterers seeking a long-term relationship. At the beginning of the 80's, loyal to its shipping vocation, ELCANO initiated a change in its dry cargo activity with its first Contract of Affreightment. Currently, ELCANO's dry cargo fleet mainly operates under long-term Contracts of Affreightment with major charterers all over the world. ELCANO also enjoys a presence in the energy sector, both in crude oil and products and in the leading LNG market, owning and operating vessels under long term agreements. The reliability and flexibility of ELCANO's service has earned it the confidence of its customers, who have entrusted ELCANO with an increasing share of their transport requirements. This has allowed them in turn to establish reliable medium- and long-term logistic programmes on a fully competitive basis.

EMPRESA NAVIERA ELCANO, S,A.

Operating flexibility is assured by the number of units that ELCANO's fleet has. This fleet is managed in-house in line with the Company's objective of being a quality and cost efficient provider of sea transport among the top tier of owners and operators. For the sake of competitiveness ELCANO is fully adapted to the international shipping market in which it operates. ELCANO shares the growing concern for the environment, its vessels and their operation being in full compliance with the international regulations in this field. Safety at sea has always been a prime concern for ELCANO, that has implemented modifications and procedures ahead of schedule and implemented new designs with the objective of caring about people and goods at sea. Quality is therefore a basic and integral part of the Group's business and operating philosophy and is reflected in every aspect of its conduct as a ship owner, operator and manager. Safety and efficiency in fulfilling our customers requirements are a prime goal for everyone in our organization.

EMPRESA NAVIERA ELCANO, S,A.

Activities
ELCANO's activities are based on the worldwide movement of dry and liquid bulk cargoes that requires a
specific knowledge of the types of traffic involved and the vessels needed to serve them. LNG, crude oil, oil products, iron ore, coal, grain, bauxite and other bulk cargoes are carried between many origins and destinations all over the world, serving the most important energy companies, industrial users and mining companies. The oil tanker fleet is engaged in worldwide transport with a sound and long-term relationship with its charterers. This is achieved with an impressive record of safety and efficiency. In 2000 ELCANO decided to enter into the strategic Liquid Natural Gas transport market, where it is succesfully operating since year 2003. The changes witnessed in the patterns of energy supply and consumption in developed countries point to a major growth potential for this market in the next few years. ELCANO, in its constant endeavour to adapt to market developments, is now an active player in this sector.

EMPRESA NAVIERA ELCANO, S,A.

As regards its dry cargo activity, since the mid-80's, ELCANO has increased the amount of cargo carried and has also gradually changed the pattern of the contracts it serves. Presently over 80% of the more than 20 mt. of dry bulk commodities annually transported are carried under COA's. This philosophy has helped our industrial clients design and implement competitive and reliable logistic programmes. As a result of establishing its business in South America, ELCANO has witnessed huge growth in the volume of cargo transported. One of the most immediate results of the new stage in the life of ELCANO is the expansion and renewal of the fleet, as well as the beginning of new and more sophisticated shipping activities. In this regard, and in addition beyond its current activities and commitments, ELCANO has substantially increased its fleet and is developing new projects related to maritime transportation, both in our traditional core business area of oil and dry cargoes and in other fields like LNG, offshore, coastal trades, etc.

EMPRESA NAVIERA ELCANO, S,A.

EMPRESA NAVIERA ELCANO, S,A.

The Fleet

The ELCANO fleet is made up of LNG, Suezmax, Panamax and Product tankers and Capesize, Panamax &
Handymax bulkcarriers amounting to over 1.9 mdwt. ELCANO also operates other chartered vessels to fulfil its transport commitments. Safe and efficient operation of its vessels is ensured by skilful and well trained crews, together with qualified and experienced technical in-house managers. ELCANO acknowledges that growing awareness of environmental issues has led to increasingly stringent environmental legislation worldwide. ELCANO sees this as a challenge to the industry. Its operating staff is meticulous in complying with all the safety and pollution legislation. The vessels as well as their operation and crews are in full compliance with all the mandatory regulations in these fields, including the requirements of the American Oil Pollution Act, 1990, ISM Code, and major oil companies vetting groups, ISPS, etc. For this reason ELCANO continuously monitors the condition of its ships and carries out safety audits on them.

EMPRESA NAVIERA ELCANO, S,A.

Corporate Structure

To carry out all its activities ELCANO relies on highly qualified operating staff and personnel who possess
extensive and thorough experience in the maritime transport of oil, gas and dry cargoes, and are capable of undertaking all the functions of a fully integrated shipping organization.

EMPRESA NAVIERA ELCANO, S,A.

EMPRESA NAVIERA ELCANO, S,A.

LAURIA SHIPPING S.A. Calada de San Lorenzo, n 5 Edificio Galerias San Lorenzo - 1 F
9061 FUNCHAL MADEIRA

EMPRESA NAVIERA PETROLERA ATLNTICA S. A. (ENPASA) Avda. Leandro N. Alem 581 1er piso Capital Federal
1001 BUENOS AIRES

EMPRESA NAVEGAAO ELCANO S.A. Praia de Botafogo, 440 - 12 andar Botafogo

CEP 22250-040 RIO DE JANEIRO

Lisbon Office: Avda. Miguel Bombarda n 42-44

1050 - 166 LISBOA

Brazil

ELCANO PRODUCT TANKERS 1, S.A. ELCANO PRODUCT TANKERS 2, S.A. EGT C/ Cano, 39
35002 LAS PALMAS DE GRAN CANARIAS

Argentina

Spain

Portugal

Jos Abascal, 4, 4 planta 28003 Madrid (Spain) Tel.: 34 91 536 98 00 Fax: 34 91 445 13 24 Telex: 27708 ENEM E