Dolphin Drilling AS — Earnings Release 2017

May 4, 2017

Financial results 1Q 2017

Oslo, May 4, 2017

AGENDA

FINANCIAL RESULTS 1Q 2017

• MARKET
• OPERATIONS
• SUMMARY

Income Statement – Key Figures

( S ) U D i l l m	Q 1 2 0 1 7	Q 4 2 0 1 6	C h a n g e
O t i p e r a n g r e v e n u e s R h d i e c a r g e n c o m e T t l o a r e v e n u e s	9 5, 5 2, 9 9 8, 4	1 5 2, 5 4, 3 1 5 6, 8	( ) 5 7, 0 ( 1, 4 ) ( 5 8, 4 )
O t i t p e r a n g c o s s R h d e c a r g e e p e n s e s x T l i t t o a o p e r a n g e x p e n s e s	( 5 4, 7 ) ( ) 2, 9 ( 6 ) 5 7,	( 5 5, 5 ) ( ) 4, 1 ( 9, 6 ) 5	0, 8 1, 2 2, 0
O l t b f d ( E B I T D A ) p e r. r e s u e o r e e p r.	4 0, 8	9 7, 2	( 5 6, 4 )
D i t i e p r e c a o n I i t m p a r m e n O i l ( E B I T ) t t p e r a n g r e s u	( 5 5, 0 ) - ( 1 4, 2 )	( 6 5, 2 ) ( 1 0, 5 ) 2 1, 5	1 0, 2 1 0, 5 ( 3 ) 5, 7
N f i i l i t t e n a n c a e m s R l t b f t e s u e o r e a x	( 6, 6 ) ( 2 0, 8 )	( 2, 9 ) 1 8, 6	( 3, ) 7 ( 3 9, 4 )
E t i t d t s m a e a x N l t t e r e s u	( 5, 6 ) ( 2 6, 4 )	( 8, 9 ) 9, 7	3, 3 ( 3 6, 1 )

EBITDA comparison 1Q 2017 vs. 4Q 2016

Financial Items Breakdown

( S ) U D i l l m	1 Q 2 0 1 7	4 Q 2 0 1 6	C h a n g e
I t t i n e r e s n c o m e	6 4,	0, 8	3, 8
G i f i i l i t t a n s o n n a n c a n s r u m e n s	0, 5	1, 2	( 0, ) 7
F i i l i n a n c a n c o m e	5, 1	2, 0	3, 1
I t t n e r e s e x p e n s e s	( 8, 3 )	( 8, 8 )	0, 5
L f i i l i t t o s s e s o n n a n c a n s r m e n s u	( 0, 3 )	( 1, 9 )	1, 6
O f t h i i l e r n a n c a e p e n s e s x	( ) 2, 8	( ) 4, 0	1, 2
F i i l n a n c a e x p e n s e s	( 1 1, 4 )	( 1 4, ) 7	3, 3
N f i i t e o r e g n c u r r e n c y g a n	( 0, 3 )	9, 8	( 1 0, 1 )
f N t i i l i t e n a n c a e m s	( 6, 6 )	( 2, 9 )	( 3, ) 7

Offshore Drilling Segment

( U S D i l l ) m	1 Q 2 0 1 7	4 Q 2 0 1 6	C h a n g e
O i	9 2	1 4 9	7
t p e r a n g r e e n e s v u R h d i e c a r g e n c o m e	0, 2, 9	9, 4, 3	( ) 5 9, ( ) 1, 4
T t l o a r e v e n u e s	9 3, 1	1 5 4, 2	( 6 1, 1 )
O t i t p e r a n g c o s s	( 4 8, 6 )	( 5 1, 9 )	3, 3
R h d e c a r g e e x p e n s e s	( 2, 9 )	( 4, 1 )	1, 2
T t l t i o a o p e r a n g e x p e n s e s	( 1, ) 5 5	( 6, 0 ) 5	4, 5
O l t b f d ( E B I T D A ) p e r. r e s u e o r e e p r.	4 1, 6	9 8, 2	( 5 6, 6 )
D i t i e p r e c a o n	( 5 4, 5 )	( 6 4, 8 )	1 0, 3
I i t m p a r m e n	-	( 1 0, 5 )	1 0, 5
O i l ( E B I T ) t t p e r a n g r e s u	( 1 2, 9 )	2 2, 9	( 3 8 ) 5,

Engineering & Fabrication Segment

( U S D i l l ) m	1 Q 2 0 1 7	4 Q 2 0 1 6	C h a n g e
O t i ( t l ) p e r a n g r e v e n u e s e x e r n a I t t n e r- s e g m e n r e e n e s v u T l i t t o a o p e r a n g r e v e n u e s	5, 3 0, 2 5, 5	2, 6 0, 2 2, 8	2, 7 - 2, 7
O i t t p e r a n g c o s s O f ( ) l t b d E B I T D A p e r. r e s e o r e e p r. u	( 6, 3 ) ( ) 0, 8	( 3, 8 ) ( ) 1, 0	( 2, 5 ) 0, 2
D i t i e p r e c a o n	( 0, 5 )	( 0, 4 )	( ) 0, 1
O i l ( E B I T ) t t p e r a n g r e s u	( 1, 3 )	( 1, 4 )	0, 1

Consolidated Balance Sheet

( U S D i l l ) m	3 1 M 2 0 1 7 a r	3 1 D 2 0 1 6 e c	C h a n g e
P l & i t t t r o p e r y, p a n e q u p m e n	1 3 0 3 7,	1 3 6 1, 0	( 3, ) 5 7
O t h t t e r n o n- c u r r e n a s s e s	1 7, 4	1 7, 3	0, 1
T t l t t o a n o n- c r r e n a s s e s u	1 3 2 4, 7	1 3 7 8, 3	( ) 5 3, 6
O h t t t e r c u r r e n a s s e s	1 8 9, 4	2 2 1, 3	( 3 1, 9 )
C h d h i l t a s a n c a s e q u v a e n s	3 3 3, 3	2 9 0, 4	4 2, 9
T t l t t o a c r r e n a s s e s u	5 2 2, 7	5 1 1, 7	1 1, 0
T t l t o a a s s e s	1 8 4 4 7,	1 8 9 0, 0	( 4 2, 6 )
E i t q u y	8 2 6, 8	8 5 3, 2	( 2 6, 4 )
N t i t t b i d b t o n- c u r r e n n e r e s e a r n g e	7 7 6, 9	8 7 9, 6	( 1 0 2, 7 )
O t h t l i b i l i t i e r n o n- c r r e n a e s u	9 2, 7	9 0, 9	1, 8
T l l i b i l i i t t t o a n o n- c u r r e n a e s	8 6 9, 6	9 0, 7 5	( 1 0 0, 9 )
C i b i d b t t t t u r r e n n e r e s e a r n g e	9 5, 5	-	9 5, 5
O t h t l i b i l i t i e r c u r r e n a e s	5 5, 5	6 6, 3	( 1 0, 8 )
T l l i b i l i i t t t o a c u r r e n a e s	1 1, 0 5	6 6, 3	8 4, 7
T l i d l i b i l i i t t t o a e q u y a n a e s	1 8 4 7, 4	1 8 9 0, 0	( 4 2, 6 )

Consolidated Cash Flow

( S ) U D i l l m	1 Q 2 0 1 7	4 Q 2 0 1 6	C h a n g e
f f P i t b i t r o e o r e n c o m e a x e s D i t i d i i t e p r e c a o n a n m p a r m e n I t t n e r e s e x p e n s e C h i k i i t l a n g e s n w o r n g c a p a / ( ) f U l iz d l i i i l i t t n r e a e o s s g a n n a n c a n s ru m e n s C f h t d t i a s g e n e r a e r o m o p e r a o n s	( ) 2 0, 8 5 5, 0 9, 2 2 9, 2 0, 5 7 3, 1	1 8, 6 7 5, 7 1 0, 4 1 8, 2 ( ) 1 0, 2 1 1 2, 7	( ) 3 9, 4 ( 2 0, 7 ) ( 1, 2 ) 1 1, 0 1 0, 7 ( ) 3 9, 6
I t t i d n e r e s p a T i d a x e s p a N h f l f i iv i i t t t t e c a s o w r o m o p e r a n g a c e s	( 8, 9 ) ( 3, 9 ) 6 0, 3	( 8, 5 ) ( 6, 7 ) 9 7, 5	( 0, 4 ) 2, 8 ( 3 7, 2 )
N i i f ix d t t t t e nv e s m e n n e a s s e s C h f l d i i iv i i t t t t a s o w u s e n nv e s m e n a c e s	( 8, 8 ) ( 8, 8 )	( 3, 3 ) ( 3, 3 )	( ) 5, 5 ( ) 5, 5
f R t i t t b i l e p a y m e n s o n e r e s e a r n g o a n s C h f l d i f i i iv i i t t a s o w u s e n n a n c n g a c e s	( ) 9, 1 ( 9, 1 )	( ) 1 9 0, 9 ( 1 9 0, 9 )	1 8 1, 8 1 8 1, 8
F i o r e g n c r r e n c u y N t h i h d h iv l t e c a n g e n c a s a n c a s e q u a e n s C h b i i f i d t a s a e g n n n g o p e r o C h d f i d t a s a e n o p e r o	0, 5 4 2, 4 2 9 0, 4 3 3 3, 3	( ) 3, 9 ( 9 6, 7 ) 3 9 1, 0 2 9 0, 4	4, 4 1 3 9, 1 ( 1 0 0, 6 ) 4 2, 9

Offshore drilling EBITDA and margin

Fleet status

U T R A- L	/ D E E P W A T E R	U N I T S

Bo le t t Do lp h in e	D S / Gu t P 1 0 ' s o	1 2 0 0 0	C lo b ia o m	An d ko a a r	Ma 2 0 1 4 Ju ly 2 0 1 8 y -	4 1 9 0 0 0 / 4 8 8 0 0 0	1 Q 2 0 1 9
B la k fo d Do lp h in c r	S S / A ke H- 3 r	0 0 0 7	No ( U K rw ay	l ia ) t c o mp n	S ke d t t ma r s a c		2 Q 2 0 1 9 *
fo Be l d Do lp h in r	S / G D L M Ma in r	1 0 0 0 0	Ma lay ia s		Pr d d in t ine d e s e rve a n ma a
O M I D W A T E R F L A T E	S O R N R W A Y
B i d fo d Do lp h in e r	S S / A ke H- 3 r	0 1 5 0	No rw ay	S t t i l a o	Au t- S t b 2 0 1 7 g u s e p e m e r	1 7 2 0 0 0	2 Q 2 0 1 9
Bo la d Do lp h in rg n	S S / A ke H- 3 r	0 1 0 5	No rw ay		S ke d t t ma r s a c		1 Q 2 0 2 0 *
fo Br d d Do lp h in e r	S S / A ke H- 3 r	0 1 5 0	No rw ay		Pr d d in t ine d e s e rve a n ma a		Q 2 2 0 1 7
M I D W A T E R F L O A T E	R S U K
fo By d Do lp h in r	S S / A ke H- 3 r	1 5 0 0	( No U K rw ay	) l ia t c o mp n	S t t ke d ma r s a c		Q * 2 2 0 2 0
Bo t Do lp h in rg s e n	Te d t / A H- 3 n e r s p p o r u		U K		C l d t ke d o s a c		1 Q 2 0 1 8
Bo ho lm Do lp h in rg	Ac d io / A H- 3 t c o mo a n		U K		C l d ke d t o s a c		4 Q 2 0 1 7

* Subject to smart stacking period

FINANCIAL RESULTS

• MARKET
• OPERATIONS
• SUMMARY

Global market – floating units

• The market is bottoming out in 2017, longer term indicators are positive
• The increase in requests and tender activity has continued during the quarter
• The contract activity has strengthened with a number of new contracts awarded
• The North Sea market is expected to balance earlier than the global ultra deepwater market
• Cold stacking and some scrapping due to overcapacity is expected to continue
• The decrease in offshore E&P spending seems to be levelling off with E&P companies also directing spending to short cycle and higher return activity offshore

Dayrates- worldwide

Source: Clarksons Platou Offshore

Norwegian floater market

• The utilization of the rig fleet in Norway is expected to continue to drop during 2017
• However, the number of requests and tenders for 2018 has increased, predominantly for shorter term work
• For 2019 and beyond, the number of requests and tenders has also increased with several longer term prospects
• Some new contracts have been awarded through the quarter

	2 0 1 7			2 0 1 8			2 0 1 9
Na m e	Q 1	Q 2	Q 3	Q 4	Q 1	Q 2	Q 3	Q 4	Q 1	Q 2	Q 3	Q 4
ig W Na t to es v a r C O S io L P ne er he Se Tr an so ce an ar c r So Tr ng a m y
d fo d lp h Br Do in e r
la Po P io r ne er C O S L In to no va r W Ve t tu es n re les W He t es rc u lp ha W A t es I I De M tro ep se a e So De ng a e
lan d lp h Bo Do in rg
l So De ta ng a S Do te na n lan d Is In to no va r fo i de d lp h in B Do r
ic Tr Ar t an so ce an c be Sc 5 ar a o ks Le iv E ir i so n De Be ep se a rg en be Tr Sp i ts an so ce an rg en De S ta ep se a va ng er be Sc 8 ar a o C O S L Pr te om o r lan ic De A t t ep se a So Eq ino ng a u x du So En ng a ra nc e So En ng a co ur ag e b ler So En ng a a
	Co	tra t n c			Op t	ion		Ya d /un r	de r c	on s	tru t c	ion

As per May 2017 Source: DNB and the Company

Average dayrates Norway

Source: Clarksons Platou Offshore

UK floater market

• The development in the UK market is similar to Norway, with rig utilization continuing to drop during 2017
• However, requests and tender activity is at a higher level, with new contracts recently being announced – including a new 2 year contract
• A moderate improvement in drilling activity is expected in 2017, however a stronger demand for 2018 is expected
• The accommodation segment remains weak

	2 0 1 7				2 0 1 8				2 0 1 9
Na m e	Q 1	Q 2	Q 3	Q 4	Q 1	Q 2	Q 3	Q 4	Q 1	Q 2	Q 3	Q 4
d Oc Va ea n ng ua r
d Oc No ea n m a
inc Oc Pr ea n es s
Tr Pr t an so ce an os p ec
i l W Hu te n r
Se ta r o
dc Se 7 1 1 o
dc Se 7 1 4 o
fo d lp h in By Do r
S S Pa M 1 ra g on
Oc Gu d ia ea n ar n lac k fo d lp h in B Do r
l d, Pa B. Lo Jr u
y ho W ix P t es en
S Sp te na ey
S Ice M A X te na
l ho W i P ix en
dc Se 7 1 2 o
l Oc Va ia t ea n n
Oc Pa io tr t ea n
de Tr Le an so ce an a r
be de De A ep se a r en
	Co n	tra c	t		Op t	ion		Ya d /un r	de r c	on s	tru t c	ion

As May 2017 Source: DNB and the Company

Average dayrates UK

Source: Clarksons Platou Offshore

FINANCIAL RESULTS

• MARKET
• OPERATIONS
• SUMMARY

Main priorities

O i l t p e r a o n a l l e x c e e n c e	D l i i f d f f i i i t t t t e v e r c o n s s e n p e r o r m a n c e a n e c e n o p e r a o n s F i d d i i l i d l t t o c s o n c o n n e c o s s c p n e a n o o p e u u w x P i i t i i t l d i t t t h i h l i t r o r z e c a p a e x p e n u r e s o s u p p o r g r e g u a r y
N t t e w c o n r a c s	f P t t t i t i i i t i u r s u e n e w c o n r a c s o p p o r u n e s o r r g s n o p e r a o n s S f h i i l b l d d i l l t t t t t t t e c u r e c o n r a c s o r e u n s n a y u p a a c c e p a e a y r a e s a n c o m m e r c a v a u e
M i i i t a n a n n g i d f t u n s r e a y o r i t o p e r a o n s	S S t t k d i d d i t i d i t h l t i t t d t t i m a r a c e r g s a r e p r e s e r v e a n m a n a n e w r e g u a r s y s e m n e g r a e e s n g U d h D N V G L i f l d i l h l i d i f C l d S t t t t t t t n e r e r e g m e o p r o o n g e s u r v e y n e r v a s e v a y o a s s a n a u o r y f t i i t t d d l t t h t t k i i d c e r c a e s a r e e x e n e e q u a o e s m a r s a c n g p e r o D l d d l f h l i f i t t t e a y e c a p e x a n r e n e w a o e c a s s c e r c a e
K i h i h t t e e p n g e r g t c o m p e e n c e	T d d i d f i i d i f h k d i t t t t t t t t o e c a e e a m s o r n s p e c o n a n m a n e n a n c e o e s m a r s a c e n s w u C t t f t i b i d i i d F O E o m m o n m a n a g e m e n e a m o r o p e r a n g s u s a r e s a n

Fred. Olsen Energy – Operating worldwide

Contract overview

U i t n	2 0 1 7	2 0 1 8
B l t t o e e	A d k n a a r o
f B l d e o r	P d d i i d t r e s e r e a n m a n a n e v
f B l k d a c o r	S k d t t C h m a r s a c e e v r o n
B i d f d e o r	S i l t t S i l t t a o a o
B l d o r g a n	S t t k d m a r s a c e
B d f d r e o r	P d d i t i d r e s e r v e a n m a n a n e
f B d y o r	S k d t t m a r s a c e
B t o r g s e n	C l d k d t o s a c e
B h l o r g o m	C l d t k d o s a c e
	F irm t t O t io c o n ra c p n

Total backlog approx. USD 220 million

Ultra deepwater

Bolette Dolphin

• Ultra deepwater drillship delivered in 2014
• Operates under a four-year contract with Anadarko estimated to expire in July 2018
• Has operated offshore Colombia during the quarter, and is now en route to the Ivory Coast

Belford Dolphin

• The unit is preserved and maintained, located outside Labuan, Malaysia
• Belford Dolphin Marketed for contract possibilities worldwide
• Completed the five-year class renewal survey at the Keppel yard in October 2015

Deepwater / midwater- UK

• Continued the extended contract with Chevron during the quarter, operating offshore UK
• The contract was concluded end of April 2017
• Is now preparing for smart stacking in Flekkefjord, Norway, ready for operations
• Completed its class renewal survey in June 2014

Byford Dolphin

• The unit is smart stacked in Lyngdal, Norway, ready for operations
• The unit completed its class renewal survey July 2015

Midwater - Norway

Bideford Dolphin

• Completed the contract extension end of March
• A new contract extension with Statoil was entered into for a one well drilling program of approximately 50 days with commencement by end of July 2017. The contract includes one optional well
• Completed its class renewal survey July 2014

Borgland Dolphin

• The unit is smart stacked in Lyngdal, Norway, ready for operations
• Belford Dolphin The unit completed its class renewal survey February 2015

Midwater – Norway / UK

Bredford Dolphin

• The unit is cold stacked at Kvinesdal, Norway
• The class renewal survey was completed August 2012
• A renewal of the class certificates will not be carried out in 2017 in the current market conditions

Borgholm Dolphin

• The accommodation unit will be sold for decommissioning
• The transaction is estimated to take place during 2Q or 3Q 2017

Borgsten Dolphin

• The unit was converted to Tender Support Vessel in 2013
• The unit is cold stacked outside Invergordon, Scotland

Harland & Wolff

• The activity has been low during the quarter with only smaller ship repairs
• Secured a jacket contract as subcontractor to Lamprell for deliveries in 2017/2018
• Has also entered into a contract with ST3 Offshore, for supply of suction buckets for Dong Energy's Borkum Riffgrund 2

Summary

F i i l n a n c a	R U S D 9 8 i l l i e e n e s e r e m o n v u w E B I T D A U S D 4 1 i l l i a s m o n w P f i f i U S D 2 6 i l l i t t t t r o a e r a a s n e g a e m o n x w v
M k t a r e	C S 2 2 0 t t b k l t i t i t l U D i l l i o n r a c a c o g a m o u n n g o a p p r o x m a e y m o n N l l i f B i d f d D l h i i h S i l, i l d i t t t t t t e o n e e c o n r a c e e n s o n o r e o r o p n a o n c n g o n e w w x w u t i l l l o p o n a w e
O i l t p e r a o n a	B l k f d D l h i b k d i F l k k f j d N f d f A i l t t t a c o r o p n o e s m a r s a c e n e e o r o r a r o m e n o p r w y, , B i d f d D l h i i t l t i l t f t h t t e o r o p n n e m p o r a r y a y u p u n c o m m e n c e m e n o e n e w c o n r a c f B h l D l h i t b l d d i i i o r g o m o p n o e s o o r e c o m m s s o n n g