though an improvement over the same period last year, were still in the red.

For the quarter the company lost $4.7 million compared to $7.1 million for second quarter 1995.

"The weaker result in the second quarter compared to the first quarter is due to dry-docking of two Aframax tankers off hire for the ULCC Mimosa ,'' Smedvig said.

Smedvig lost $461,000 in first quarter 1995.

"Prices for medium sized crude oil tankers have remained stable over the second quarter,'' Smedvig said Tuesday.

"If the improved market for V/ULCC's remains in place, it should have a positive impact on utilisation rates and therefore the market for the company's fleet,'' said Smedvig board chairman Mr. Peter Smedvig.

For the six months ending June 30, Smedvig reported losses of $5.2 million compared to $12.3 million for the same six moths a year earlier.

Second quarter unaudited operating income rose to $7.4 million from $6 million.

Operating expenses, at $7 million, were down from $7.9 million reported earlier.

Net asset value of the company is estimated at June 30 at $152.3 million or $8.22 per share.

In the second quarter, four of Smedvig's tankers have been operating on time charter. Average time charter earnings for the Aframax vessels were $14,350 per day and $15,257 per day for the Suezmax vessels.

The company's last dry bulk carrier MV Venanna was delivered to new owners June 1.

Smedvig also reported the ULCC Mimosa , off hire for a special survey, has been fixed for a cargo of oil from the Arabian Gulf to the Red Sea.

After a depreciation charge of $4.2 million, second quarter operating income was a loss of $3.8 million compared to $6.1 million.

Smedvig owns and operates modern, medium-sized crude oil carriers.

The company is listed on the Oslo Stock Exchange and shares are also traded through SEAQ International, London and through an American depositary receipt (ADR) programme in the US.