Magnora ASA

Earnings Release • Aug 20, 2014

SEVAN MARINE ASA - First Half 2014 Results - Improved opportunities through strategic agreements

SEVAN MARINE ASA - First Half 2014 Results - Improved opportunities through strategic agreements

During first half 2014, Sevan Marine has through new cooperative agreements with

Technip and Teekay created a basis for increased activity both within its core

business area as well as for other applications of Sevan's floater technology.

Main events and developments, first half 2014

* Increased activity within the FPSO/FSO market segment

In April, Teekay signed a MOU with Xcite for a bridge-linked FSO solution on the

Bentley field based on the Sevan design. This, together with studies on other

promising prospects such as Bream with Premier Oil and Penguins with Shell,

represents increased activity for the company.

* Strategic partnership with Technip strengthens KANFA

In April, Sevan sold 49 per cent of KANFA AS to Technip Norge AS. By this KANFA

will get access to a larger market within the topside and process industry.

* New Logitel agreements reduce risk and strengthen floating accommodation

initiative

In July, Sevan finalized an agreement with Teekay that has opened a new line of

business within the accommodation market as well as reduced Sevan's risk

exposure relative to Logitel. In accordance with the agreement, Teekay exercised

the first out of six accommodation unit options in August, thus expanding the

current building programme to three units.

* Healthy operation and financial position

Operating revenue of USD 52 million was USD 6.8 million higher than first half

2013. EBITDA of USD 2.8 million was USD 1 million lower than first half 2013.

Cash position remains healthy at 36 USD million as at June 30, 2014.

* Dividend distributed

In May, a dividend of USD 10.5 million was distributed. The Board has set a

strategic target of paying an annual dividend also in the future.

CEO Carl Lieungh comments: "Sevan's position as a provider of floater technology

and topside engineering expertise continuous to expand through the agreements

with Teekay and Technip. Sevan is developing according to our strategy and is

now well positioned to continue to grow our market opportunities and succeed

with the prospects we are working on."

Main figures, second quarter 2014

Operating revenue for the second quarter 2014 was USD 27.4 million. EBITDA was

positive with USD 1.2 million, and operating profit was USD 1.1 million. Net

profit was USD 1.4 million.

As of Q2 2014, cash and cash equivalents amounted to USD 36 million, total

assets were USD 163 million, and the equity ratio was 71.4 per cent.

Outlook

* The outlook is generally positive for the FPSO/FSO market segment, and

increased focus on cost effective solutions should be an advantage for

Sevan.

* The drilling segment is expected to remain challenging in the short and

medium term. However, the co-operation with Sevan Drilling / NADL / Seadrill

is expected to generate new opportunities in the longer term

* Teekay's entry into the FAU market is positive for Sevan and is likely to

generate increased activity in the short and medium term

* The co-operation with Technip is expected to open a larger market for KANFA.

* Expectations of paid studies for further development of the FLNG concept in

the medium term.

Read more in the attached report.

Carl Lieungh (CEO) and Kjetil Vangsnes (CFO) will today at 1:00 p.m. (CET) give

a presentation of the results at Hotel Continental, Stortingsgaten 24/26, Oslo.

The presentation will be in English.

The presentation will also be broadcasted LIVE on www.sevanmarine.com.

It is recommended that you log on to the webcast 5 minutes in advance of the

presentation.

If you wish to attend the presentation in Oslo, please confirm by email:

IR@sevanmarine.com

If you wish to call-in to listen to the presentation, please find the call-in

details attached.

The information in this announcement is subject to the disclosure requirements

of the Norwegian Securities Trading Act section 5-12 and/or the Oslo Børs -

Continuing Obligations.

Sevan Marine ASA is specializing in design, engineering and project execution of

floating units for offshore applications, based on its patented cylindrical

floater technology. Sevan Marine ASA is listed on Oslo Børs with ticker SEVAN.

For more information, please refer to www.sevanmarine.com.

For more information please contact:

Marit Ytreeide, Press Contact (Media)

+47 901 28 308 mobile

Carl Lieungh, CEO, Sevan Marine ASA (Media)

+47 37 40 40 00 office

Kjetil Vangsnes, CFO, Sevan Marine ASA (Analysts)

+47 37 40 40 00 office

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