¿QUIENES SOMOS?

We are an Ecuadorian maritime company.

We attend the hydrocarbons maritime transportation necesities of our customersin the national and international market, providing diversified services,competenet employees.

We protect the environment and we contributes the development andimprovement of our country.

The article 313 of the Ecuadorian Constitution states the hydrocarbons transportationconstitute an estrategic activity for the homeland. Executive Decree 1117 of May26th/2012 creates the new “Empresa Publica Flota Petrolera Ecuatoriana – EPFLOPEC”, dedicated to the maritime hydrocarbons transportation.

In the 2012, EP FLOPEC have suffered several changes, among other in theirManagement since the control of the Ecuadorian Navy to a new Management.

EP FLOPEC have the opportunity toexpand their services, increasing thecomercial and operational capabilities,focusing in the market and customerneccessities.

We know what we do and we do itright!

Due to the several changes in the administration, EP FLOPEC is leaded tocreate their own Strategic Planning, addressing the efforts to the fleetexpand, earnings improvement and taking control over the ecuadorian andinternational market.

TOTAL PRODUCT83.5 MILL BBLS/DIA

100%

CRUDE OIL38.0 MILL BBLS/DIA

45.5%

PRODUCTS16.5 MILL BBLS/DIA

19.8%

PIPELINES29.0 MILL BBLS/DIA

34.7%

MARKET SHARE

MARKET - ANALYSIS

10

MARITIME TRANSPORTATION54.5 MILL BBLS/DIA

65.3% BP STATISTICAL REVIEW OF WORLD ENERGY -JUNE 2012

The total volume of oil moved between areas arrive to 26,2 millon barrels per day. (9,563 millonbbls/year). Total volume moved within the same area arrives to 28,3 millon barrels/day.

MARITIME SEA BORNE

11FUENTE: BP STATISTICAL REVIEW OF WORLD ENERGY - JUNE 2012

MARKET - ANALYSIS

By 2012 we analized about 3 thousand oil & product tankers for the hydrocarbons transportation inthe world with over 4 hundred millons of DWT. The sizes used in the analysis are VLCC, Suezmax,Aframax and Handymax.

ESTRUCTURE OF THE MARKET

13FUENTE: CLARKSON REGISTER - 2012

3,004 tanqueros413 millones de DWT

97,477 

187,885 

26,733 

72,027 

29,376 

913 

615 602 

466 408 

‐

100 

200 

300 

400 

500 

600 

700 

800 

900 

1,000 

‐

20,000 

40,000 

60,000 

80,000 

100,000 

120,000 

140,000 

160,000 

180,000 

200,000 

AFRAMAX/LR2 VLCC HANDYMAX/MR SUEZMAX PANAMAX/LR1

MILES DE DWT

FLOTA MUNDIAL DE TANQUEROS 2012 (Tanker & Product Carriers)

Suma de Dwt Buques

MERCADO - ANALISIS

MERCADO - ANALISIS

14

SPOT RATES VS TIME CHARTER RATES 2000 - 2012

FUENTE: CLARKSON REGISTER - 2012

COMPETENCIA - ANALISIS

15

Competitors are Vessel’s Owners and Vessel’s Commercial Operators that participates directly in themaritime transportation over the world.

Commercial Operators are mainly pools, but also alternative joint ventures asociations or strategicalliances between some players in this market. The strengh of this kind of commercial operationsconstitute share cargoes, availability of different kind and numbers of vessels and sinergies with somecompanies.

Armador A PETROLERAS

Armador B

Armador C

Armador N

OPERADORCOMERCIAL

AsociacionesJoin VentureAlianzasPOOL

TRADERS

REFINERIAS

CLIENTES

COMPETENCIA

16

ACTUAL ESTRUCTURE

TRANSPORTE MARITIMO54.5 MILL BBLS/DIA – 65.3% Mundo

Tanker & Product Carrier

ARMADORESDueño del buque

Holdings

Alta diversificación

Empresas (Baja diversificación)

OPERADORES Operación Comercial del buque

Pools

Traders

Petroleras

Otros

CONTRATO A TIEMPOCASCO DESNUDO

CONTRATO POR VIAJECONTRATO A TIEMPO

EL TRANSPORTE SE LO REALIZA EN BUQUES TANQUEROS, QUEMIQUEROS Y PRODUCTEROS CLASIFICADOS POR TAMAÑO.

COMPETENCIA - ANALISIS

19FUENTE: CLARKSON REGISTER - 2012

COMPETENCIA - ANALISIS

TOP TANKER OWNERS 2012OIL AND PRODUCT TANKERS

TONELAJE: EN MILES DE DWT

(JERARQUIZACIÓN DE ACUERDO A TONELAJE DWT)

No.Top 23-32

VLCC SUEZMAXAFRAMAX PANAMAX HANDYMAX

TOTALOwners LR2 LR1 MRDWT NUM DWT NUM DWT NUM DWT NUM DWT NUM DWT NUM

23 Formosa 2.982 10 229 2 436 6 901 19 4.548 3724 Thenamaris 637 2 909 6 1.861 17 424 10 3.831 3525 Torm 948 9 517 7 2.191 48 3.656 64

26Nordic American 3.246 21 3.246 21

27 BP plc 772 4 1.795 16 563 12 3.130 3228 Tanker Pacific 600 2 630 4 1.284 12 75 1 427 9 3.016 28

29Schoeller Holdings Ltd. 1.595 10 438 4 441 6 478 13 2.952 33

30Diamond S Shipping LLC 1.270 8 211 2 1.449 30 2.930 40

31 Cido Shipping 595 2 796 7 702 16 2.093 2532 Arcadia 636 4 1.108 10 1.744 14

TOTAL TOP 32  103.130 337 36.968 239 38.766 360 11.185 153 21.224 475 211.274 1564

127 EP FLOPEC 211 2 201 3 91 2 503 7

OTROS 84.755 278 35.059 227 58.711 553 18.191 255 5.509 127 202.225 1440

TOTAL 187.885 615 72.027 466 97.477 913 29.376 408 26.733 602 413.499 3004

20

Customers are primarily formed by Oil Companies, Refineries and Traders involved into the maritime hydrocarbonstransportation in the world.

OIL COMPANIES.- Goverment of private companies with activities within the oil production chain (Upstream,Downstrem and Comercialization).REFINERIES Son compañías constituidas para la refinación de hidrocarburos. Muchas de estas compañías sonEmpresas Petroleras.TRADERS Cusually public companies marketing commodities into the market. In the oil industry, traders usuallyagreed COA with owners operators in order to have some control in the shipping. This strategic was adopted also byOil companies and refineries.

It is very common that big oil companies has their own or affiliate shipping company.

CLIENTE ANALISIS

PETROLERAS

OFERTA MUNDIAL DE TANQUEROS

TRADERS

REFINERIAS

CLIENTES

UPSTREAM

DOWNSTREAM PROCESO DE REFINACION

CRUDO

PRODUCTOS

21

CLIENTE - ANALISIS

FUENTE: OPEC web site 2012

Biggest Oil Companies by oil reserves

NOMBRE MILES DE MILLONES BARRILES% PARTICIPACION

DEL TOTAL

1 PDVSA 296.5 17.94%

2 Saudi Arabian Oil Company 265.4 16.06%

3 National Iranian Oil Company 151.2 9.15%

4 Irak National Oil Company 143.1 8.66%

5 Kuwait Petroleum Corporation 101.5 6.14%

6 Abu Dhabi National Oil Company 97.8 5.92%

7 Gazprom/Sonatrach/Rosneft 88.2 5.34%

8 National Oil Corporation 47.1 2.85%

9 Nigerian National Petroleum Corp. 37.2 2.25%

10 Qatar Petroleum 24.7 1.49%

TOP 10 PETROLERAS 1,252.7 75.80%

22 EP PETROECUADOR 6.20 0.38%

OTROS 393.80 23.83%

TOTAL MUNDIAL 1,652.7 100%

22

COMPAÑIAS CON MAYOR CAPACIDAD DE REFINACION DEL MUNDO

CLIENTE - ANALISIS

COMPAÑÍA BPD %TOTAL # REF %TOTAL1 EXXONMOBIL 4.824.540 5,78% 22 3,48%2 ROYAL DUTCH SHELL 3.674.000 4,40% 22 3,48%3 SAUDI ARAMCO 2.900.000 3,48% 9 1,42%4 TOTAL S.A. 2.704.500 3,24% 15 2,37%5 PHILLIPS 66 2.423.400 2,90% 15 2,37%6 VALERO 2.336.900 2,80% 15 2,37%7 BP 2.336.500 2,80% 11 1,74%8 PETROBRAS 2.275.975 2,73% 14 2,21%9 PDVSA 1.761.200 2,11% 8 1,26%10 NIOC 1.618.000 1,94% 9 1,42%11 ROSNEFT 1.478.100 1,77% 8 1,26%12 PEMEX 1.245.000 1,49% 7 1,11%13 CHEVRON 1.235.401 1,48% 9 1,42%

14 NIPPON OIL CORPORATION 1.217.000 1,46% 7 1,11%

15MARATHON PETROLEUM CO.

1.193.000 1,43% 6 0,95%

TOP 15 COMPAÑÍAS 33.223.516 39,82% 177 27,96%

TOTAL MUNDIAL 83.431.880 633

MAPA ESTRATEGICO

Focusing Areas 2012-2017

2012-2017 Guidelines

Objective

Visión Mission

Gestionar la operación del transporte marítimo del 100% de las exportaciones e importaciones de

hidrocarburos, desde y hacia Ecuador, así como el 25% del mercado regional a través de tonelaje

controlado por EP FLOPEC; priorizando las necesidades nacionales, generando empleo,

contribuyendo al presupuesto general del estado y favoreciendo a la balanza de pagos, en términos de

rentabilidad y competitividad sistémica, fomentando la generación de alianzas estratégicas

1. Develop and Implement a commercial plan of enterprise strengthen.2. Develop and Implement an organizational culture guided to quality.3. Implement a Business Intelligence System.4. Fleet growth and upgrade.5. Develop and Implement a relation strengthen program with key people.6. Develop and Implement an OPEX system.

1. Increase our participation in national and international market.

2. Strengthen the maritime hydrocarbons transportation trade by Ecuador nationally and internationally level.

3. Reinforce and develop strategic alliances. 4. Increase productivity and earning levels at the industry

standards.

EP FLOPEC, leader in hydrocarbons maritime transportation within the Pacific’s American Coast. Has optimal infrastructure to cover the national demand and the regional market’s requests.

We are a hydrocarbons and other natural resources maritime transportation company, strategic for Ecuadorian State. We satisfy the national and international market growing needs, providing different quality services through competent personnel aligned to our objectives, values, and principles. We preserve the environment and contribute to a good lifestyle and country development.

1.Develop and Implement a commercial plan of enterprise strengthen.

3. Implement a Business Intelligence System.

4. Fleet growth and upgrade.

1.Develop and Implement a relation strengthen program with key people.

1.Develop and Implement an organizational culture guided to quality.

Programs

3. Develop and Implement a HumanResources Plan.

8. Implement an Information and Communication Integrated System

7. Develop and Implement CustomerCulture System

2. Implement strengthen InformationTechnology Plan

4. Develop and Implement Key peoplestrengthen plan.

5. Implement Business process re-engineeringsystem for the quality

1. Develop and Implement a Nationaland International Growth Plan

6. Design and Implement a BussinessIntelligence System

9. Develop and Implement a StrengthenProgram for the maintenance of theown vessels.

Guidelines 2013 - 2017

1.Develop and Implement an OPEX system.

10. Develop and Implement a CompanyStrenghthen Plan

TRADING

The Trading of ourfleet is primarilythe AmericanContinent, areawhere we areleaders in thePanamax sectorand actuallyreaching asignificantparticipation in theAframax sector.

OWN CONTROLLED FLEET

4

2

2

12

3

1 1

5

1

3

3

1

0

2

4

6

8

10

12

AQUA FLOPEC HC Accounting Srv.

NAVIG8 PETREDEC SOLVANG TSAKOS

NUMER

O DE BU

QUES

AFRAMAX HANDYMAX PANAMAX SMALL TUG VLGCTOTAL

29 BUQUES

16 PANAMAX(OSG/Ultratank)

2 AFRAMAX(Ultratank)

ACTIVIDADES

SHIPMANAGEMENT MANING COMMERCIAL OPERATOR

MaintenanceRepairsVettingDry-dockingCertificationInsurers

CrewManagementTrainningCertification

CharteringOperationsPostfixtureClaims

ECUADORIAN CRUDE OIL COMPOSITION 2012

AFRAMAX65,95651%

VLCC7,0955%

PANAMAX50,28139%

SUEZMAX6,3675%

EN MILES DE BBLS

The 51% of total ecuadorian crude oil is moved in AFRAMAX vessels, the 39% inPANAMAX vessels, 5% in SUEZMAX vessels and 5% in VLCC vessels. Actually EP FLOPEChas control on the PANAMAX and AFRAMAX liftings from Ecuador.

About the 85% of total ecuadorian crude oil exportation have USWC, WC Panamá,Perú and Chile destination.

USWC

USWC

USWC USWCUSWC

PANAMA

PANAMA

PANAMA PANAMAPANAMA

PERUPERU PERU PERU PERU

CHILECHILE

CHILE CHILECHILE

USGUSG

USG USG

USG

OTRAS 10OTRAS 10 OTRAS 10

OTRAS 10

OTRAS 10

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2008 2009 2010 2011 2012

MILES DE BB

LSECUADORIAN CRUDE OIL DESTINATION

2007 2008 2009 2010 2011 2012

TOTAL 22,168 21,048 24,733 33,714 31,405 33,183CAGR 8.40%

CAGR, 8.40%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

EN M

ILES DE BB

LS

TOTAL CAGR

IMPORTACIONES DE PRODUCTOS AL ECUADOR

DIESEL OIL16,93051%

NAPTHA13,73241%

CUTTERSTOCK2.521

8%

EN MILES DE BBLS

COMPOSICION DE LAS IMPORTACIONES AL 2012

• EP FLOPEC comenced the growing plan into the regional market on the 2006 with an strategic alliance with OSG Group of USA and Ultragas Group of Chile and constitute Panamax International Shipping Company PISCO, obtainingthe regional control in the PANAMAX sector. 

• The pool lets EP FLOPEC to lift the 100% of the ecuadorian crude oil in Panamax vessels, but also increase a significant participation in the DPP transportation over the Americas.

• Ecuador contributes about 32% of all the cargos transported by all the vessels of Panamax International

50%55%

51%

65% 68%

50%45%

49%

35% 32%

0%10%20%30%40%50%60%70%80%

2008 2009 2010 2011 2012NUMER

O DE CA

RGAS

TOTAL CARGAS PANAMAX INTERNATIONAL

FUERA ESMERALDAS ESMERALDAS Linear (ESMERALDAS)

TRANSPORTE REGIONAL

COMERCIAL AGREEMENTS

EP FLOPEC have some comercial agreements with national andinternational companies which provides significant benefits to the contractualparties.

These agreements obtained better rates for customers driven by anefficiency and optimizatrion of the fleet.

ANDES TANKERS

PANAMAX INTERNATIONAL

GOALCooperate and participate the individual strenghs and

sinergies bewteen the companies and improve the use and operation of the total available fleet shared by the members.

We have reduced the ballast passages and in economicssense, reduce the market volatibility of the freight rates.

MIEMBERSOSG (EEUU)

SONAP (Chile)FLOPEC

FLEET24 buques tipo

PANAMAX

100% of theEcuadorian

Market

InternationalMarket

POOL PANAMAX INTERNATIONAL

ANDES TANKERS

OBJETIVOComercial Agreement leaded to operate AFRAMAX vesselssharing cargoes and operated vessels between members. Each memeber operates the vessel by itself, but we share

cost saving agreements.

MEMBERSCAPE TANKERS (USA)

FLOPEC

FLEET6 buques tipo

AFRAMAX100% mercado

de EcuadorMercado

Internacional

ANDES TANKERS

OPERATIVITY INDEX

CRUDE OIL LIFTINGS

Levantes de crudo

ECUADORIAN CRUDE OIL LIFTINGS BY CLASS OF VESSEL

For the last years, AFRAMAX sector increase the participation and liftings of crude cargoes inEcuador, affecting the PANAMAX available cargoes in Ecuador.

EARNINGS TREND

The trend on the company resultas follows the market trend where since the 2000significant earnings obtained over the next 8 years. But since 2009 the market was affectedby the low freight levels and Ship Owners have a challange to continue operating underactual circumstances.

STORAGE LPG TERMINAL

MARITIME TERMINAL AND STORAGEFACILITY IN MONTEVERDE

The Ecuadorian Goverment, leaded by EPFLOPEC proposal in the 2006, FLOPEC isbuilding a new LPG infraestructure inMonteverde to Storage in a efficient terminalthe LPG required by the country. However,the terminal have capacity to storage not onlythe amount imported by Ecuador, but also tostorage and distribuite LPG in the west coastof Amercia.

This new terminal will reduce significant theoperational actual costs in the floatingstorage in Cuarentena, close to Guayaquil..

The terminak will be ready by the end of thismonth and later on delivered to EPPETROECUADOR.

ALMACENAMIENTO, MANEJO DE CARGA Y TRANSPORTE MARÍTIMO DEGLP

FLOPEC had the responsibility to trade in the market the LPG requirement forEcuador since November 2009 till June 2011. Then after we just take control overthe logistics in receiving the imports of LPG and deliveries to the internal terminalsthrough small LPG carries. All the logistics uses time chartered vessels.

AGENCY SERVICES

Since the issuance of the Executive Decree No. 1127, EP FLOPEC merged the wellrecognized agency servicios marítimos y logísticos SEMALOG S.A with offices inEsmeraldas, Guayaquil and La Libertad.

In the 2012, EP FLOPEC agency services attended 1.386 vessels in the threementioned ports, with a grow rate of 13% compared with the 2011.

Actually EP FLOPEC agency services is doing a market research to expand theagency servicies to other sectors and cargo tankers, reefs, containers, etc. wihtin thecountry. In a second stage, the participation will be expanded to strategic foreignports in which we have a significant participation with the own opertaed fleet.

RESPONSABILIDAD SOCIAL EMPRESARIAL

PABELLÓN DE AULAS ESCUELA GONZALO PIZARROMEJORAS BARRIO PUERTO LIMON

CONVENIO FASAN APOYO A NIÑOS