drove annual profits down 70 percent.

For the year ended December 31, preliminary unaudited results show the company made $4.9 million compared to $16.6 million for the prior year.

In fourth quarter, Bona posted a $7 million loss compared to an $8.2 million profit from fourth quarter 1995.

"Bona had a difficult fourth quarter,'' the shipping company said.

Difficulties were partly due to low freight rates obtained for the company's aframax tankers during fourth quarter and a weaker panamax dry bulk market, Bona said.

"In addition, the drydocking of Bona Rainbow was considerably more expensive and time consuming than planned.'' The vessel was offhire for 50 days.

"The fact that 15 Bona vessels were drydocked during the year has resulted in a decline in net profit compared to 1995,'' Bona said.

Bona also said that costs linked to bringing older Smedvig Tankships, the Bermuda-registered shipping company taken over by Bona, vessels up to Bona standard proved higher than anticipated.

Earnings for OBO and aframax vessels were down compared to 1995 but suezmax tankers obtained better results, Bona said.

Overall, time charter income for the year was $133.2 million compared to $113 million.

Expenses (charter hire, crew, administrative and other) for the year rose to $64.8 million from $58.2 million.

Amortisation drydocking expenses for the year were $4.6 million compared to $2.6 million earlier.

Depreciation of vessels for the year was $45.9 million compared to $30.7 million.

Assets at year end were $675.8 million compared to $782.4 million.

Net asset value at year end was $331.7 million, a $20 million decline from three months earlier.

Per share net asset value was $11.69 at the end of 1996 compared to $11.12 a year earlier.

On prospects for 1997, Bona said: "Tanker freight rates by Bona in 1996 were weaker than expected but the underlying forces driving the tanker markets are still positive.

"Demand for crude oil is expected to increase further in 1997. However, tonne mile demand will not necessarily increase to the same extent as part of this demand will be covered by crude oil coming from the North Sea and Latin America.

"The dry bulk market is somewhat stronger today than in the middle of last year but Bona does not expect any major improvement in this market in the near future.'' For 1996, operating profit was $22.8 million, up marginally from the previous year. Bona posted a fourth quarter operating loss of $2.7 million compared to a gain of $6.3 million earlier.

BUSINESS BUC