1995 first quarter to March 31, a significant improvement on the $5.16 million loss in the same period a year ago.

Slight improvements in rates and better financial markets helped the international shipping company post the result. In the fourth quarter of 1994, it lost $2.17 million.

The international shipping company posted an operating loss of $2.4 million, after ordinary depreciation of $4.5 million had been charged. The operating costs have been charged with a half a million dollar net loss from the sale of the company's two dry bulk carriers.

Chairman Mr. Peter T. Smedvig, commented: "The results are still not satisfactory. The economic growth in most industrialised countries, and the increase in scrapping of old tankers, give us good reason to maintain our view that the tanker market will improve during the next two years.'' Net financial items were positive by $1.9 million, which includes gains on the reversal of interest rate swaps of $3.1 million, resulting in the near half a million dollar loss for the quarter.

Cash flow, excluding gains on interest rate swaps and loss on sale of vessels, was $2.2 million. With the inclusion of those items, the figure rises to $4.7 million.

The company said prices for medium sized crude oil tankers have in general increased slightly over the first quarter. Based on recent transactions and monthly estimates from ship brokers, the firm's management estimated the net asset value of the company was $158.4 million or $8.55 a share at March 31.

The four tanker vessels were operating on time charters. Average time charter earnings were $14,575 per day for the Aframax vessels and $15,482 per day for Suezmax vessels.

Smedvig's ULCC, T/T Mimosa suffered damage to her forepeak ballast tank in January and has been out of operation since. Repairs have been completed and the vessel is expected to commence normal trading at the end of the month.