Hunter Group ASA

Earnings Release • May 15, 2018

Hunter Group ASA - Q1 2018 report

Hunter Group ASA - Q1 2018 report

Highlights

- Total consolidated revenues was NOK 5.8m in Q1 2018. Total net income for Q1

2018 was NOK -44.8m.

- EBITDA (Earnings before interest, tax, depreciation and amortization) was

negative with NOK -15.2m in Q1 2018. One off cost related to negotiations with

IKM for possible acquisition was NOK 7.3m.

- EBIT (Earnings before interest and tax) was negative with NOK -44.7m in Q1

2018, including a write-down of NOK 25.5m (please see note 10 for further

details).

- Cash position as of 31.3.2018 was NOK 267.3, down from NOK 279.5m last

quarter. Total interest bearing debt was NOK -25.1m.

Key events in Q1 2018

- The management and board of directors proposed medio February to acquire IKM

Subsea & Technology from IKM Gruppen AS. The transaction was withdrawn, as the

board received documentation from Apollo Asset Ltd, owned by Arne Fredly, that

shareholders holding in excess of 1/3 of the Company's shares will vote against

the contemplated transaction with IKM Gruppen AS.

- In March, the board of directors received notice from interim CEO and CFO,

that they will resign from their positions.

- The WOR contract with a yard for Dwellop, a presented in the 4q 2017 report,

has not materialized in the quarter as the yard has not concluded on a contract

with its client. The absent of a WOR contract, in combination with a high level

of fixed costs, have over the past month led to a tensed liquidity situation in

Dwellop. As such, the board of directors in Hunter Group ASA has decided to make

an impairment of the book value of the goodwill related to the CGU for Dwellop

with NOK 25.5 million in 1Q 2018. Please see note 9 for further details. On a

positive note, the order intake for WIS segment (Well Intervention System &

Products) shows signs of improvement compared with same quarter in 2017.

Subsequent events

- The board of directors announced 11 May 2018, that the Company had received

satisfactory refund guarantees and made the first instalment for three of the

VLCC construction contracts, the Company will undertake the payment for the

fourth construction contract once a refund guarantee is in place. In addition,

the Company announced that it will exercise the three VLCC construction option

contracts once a firm contract is signed and a refund guarantee is in place.

- At the ordinary general meeting 9 May, the shareholders approved of i) the

private placement of NOK 172,5m, ii) issuance of 15m warrants to Apollo Asset

Ltd, iii) agreement with Apollo Asset Ltd related to take over the four VLCC

construction contracts and three options on a "back-to-back" basis and iv)

distribution of Dwellop to the Company's shareholders. Please see note 9 and 10

for further details.

- The Company announced early May that Mr Erik Frydendal will take on the

position as CEO and Mr Sujoy K. Seal the position as COO.

- On 10 April 2018 (later approved at the AGM 9 May 2018) the Company received

a non-binding indicative offer from Apollo Asset Limited, the Company's largest

shareholder as of the same date, with respect to transferring four (4) VLCC

newbuilding contracts and three (3) VLCC options to the Company. The transfer of

the newbuilding contracts and the options is on a back-to-back basis as

contracted with the Daewoo Shipbuilding Marine Engineering Co., Ltd, whereby the

Company will assume the obligations towards the Shipyard (directly or

indirectly). Total commitments for the four newbuilding contracts are USD

341.1m. Please see note 9 for further details.

This information is subject of the disclosure requirements pursuant to section 5

-12 of the Norwegian Securities Trading Act.

For further information, please contact:

Erik A.S. Frydendal, CEO, +47 957 72 947, ef@huntergroup.no

www.huntergroup.no