An emphasis on achieving a ‘cost and service leadership’ position in all our market niches;
	Further development and growth of our core business units to enhance the future cash generating capability of the company;
	Adopting the philosophy of ‘making what is good even better’;
	Capitalising on our commercial knowledge in China to develop long-term growth of our Chinese operations.

We want to continue to develop the Group into a multi-cultural entity with a global presence and a truly international profile. We will continue our policy of ‘hiring the best people with the highest degree of enthusiasm wherever we can find them’ to enhance our strategic and financial goals.

Wherever possible, we will utilise leading-edge information technology to improve co-operation and co-ordination within the global Group to enhance our business models and systems. By using state-of-the art solutions, we develop communications that simplify our contact with our customers - using these close relationships to our mutual advantage.

We want to ensure that I.M. Skaugen also recognises that the privilege of conducting business in our communities demands excellence from us in our environmental, health and safety performance. We are committed to the safe operation of our vessels and facilities, the welfare of our employees and community, along with the protection of the environment.


Key operational goals

Our overriding objective is to ensure that our two major alliances, formed on 1st October, 2003 - with Teekay and A.P. Møller-Mærsk - operate to their full potential. We will leverage the strength of these two market leaders to provide even greater levels of quality and value to our customers. In addition, there are a number of other targets we will be working hard to meet during 2005 for our three business units.


Norgas

Over the coming year we will extend our efforts to:

	Take advantage of a promising market to deliver the returns we have sought. We will seek to further establish our presence in Asia by creating the Norgas holding structure in Singapore. We shall work tirelessly to retain our hard-fought EBIT break-even levels, to maintain a high level of competitiveness in a demanding global industry. We must maintain our focus on achieving the lowest operational costs worldwide, whilst continuing to offer industry-leading levels of service;
	Focus on the safety of our operations and aim to lower our loss time incident (LTI) targets. There will be a particular emphasis during the year on ISO 14000 - we will undertake a pre-study covering environmental aspects related to all of our operations;
	Improve our knowledge of the markets we serve, which will allow us to better meet the challenges of the industry and enhance our understanding of our customers’ business drivers;
	Work to ensure MNGC market share is retained and survives changes in A.P. Møller-Mærsk’s Skandigas structure; and make sure that a fleet renewal process is managed for completion within a five-year period.

China activities

We will strive to further develop our Chinese operations in line with the economic growth of the country. Specifically, we will endeavour to:

	Create an innovative team that is capable of executing the I.M. Skaugen business concepts and ideas in China - including our aim of securing the lowest possible investment cost for new tonnage;
	Capitalise on our experience to develop further business activities in China. In 2005, it will be important to bring our Five Star Marine boat project to the market;
	Expand our TNGC activity - both geographically and by range of products we carry - and create even more co-operative logistics solutions for our customers. We will review the possibilities for on-shore distribution for LPG. Our new LPG carrier is a key project and it is likely that we will need to alter the present partner structure to protect our investment and to aid further growth;
	Further develop Norgas Fleet Management in Shanghai as an integral part of the efforts of Norgas to achieve a continued reduction in EBIT break-even levels. We will work to increase the range of products and services that are attractive to customers outside the gas carrier market. Norgas Fleet Management will play an active role in the planning and execution of new building projects in China for both I.M. Skaugen and affiliated companies;
	Extend further Wuhan University of Technology-Skaugen Training Centre (WSTC) as the pre-eminent training centre in China for the handling and transportation of dangerous cargoes at sea.

SPT

Our lightering business will focus on three key areas during 2005, namely to:

	Continue our emphasis to develop as a ‘highly reliable organisation’, characterised by superior customer services, a ‘can do’ attitude and very high internal expectations with regard to safety, punctuality and dependability;
	Enhance our team of skilled and motivated professionals, who are able to manage the complex risks of a highly volatile tanker market. They must be able to adapt to changes and developments in our business model - from our historic ‘natural hedge’ to one that is more flexible and dynamic, thereby taking advantage of changing market conditions;
	Ensure that we realise our goal of successfully expanding our range of international services.

New projects

I.M. Skaugen will ensure it has the managerial talent and the financial resources to successfully execute the business plans for all of the business projects as approved by the Board of Directors. These projects include transportation of gas and chemicals in China and throughout Asia, as well as of gas and chemicals into Europe.