Presentation 1Q 2014

Oslo, 7th May 2014

AGENDA

FINANCIAL RESULT 1Q 2014

MARKETS

OPERATIONS

SUMMARY

Income Statement – Key Figures

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

EBITDA Comparison 1Q 2014 vs. 4Q 2013

Financial Items Breakdown

( S i ) U D l l m	Q 1 2 0 1 4	Q 4 2 0 1 3	C h a n g e

I i t t n e r e s n c o m e	0 7 ,	0 5 ,	0 2 ,
G i f i i l i t t a n s o n n a n c a n s r m e n s u	0 8 ,	1 7 ,	( 0 9 ) ,
F i i l i n a n c a n c o m e	1 5 ,	2 2 ,	( 0 ) 7 ,

I t t n e r e s e p e n s e s x	( ) 1 1 0 ,	( ) 9 0 ,	( ) 2 0 ,
C ( ) i l i d b i j t t t a p a z e o r r o w n g c o s p r o e c s	3 2 ,	4 8 ,	( ) 1 6 ,
f L i i l i t t o s s e s o n n a n c a n s r u m e n s	( ) 0 4 ,	( ) 0 8 ,	0 4 ,
O f h i i l t e r n a n c a e x p e n s e s	( ) 3 4 ,	( ) 4 4 ,	1 0 ,
i i F l n a n c a e p e n s e s x	( ) 1 1 6 ,	( ) 9 4 ,	( ) 2 2 ,

N f i i / ( l ) t e o r e g n c r r e n c g a n o s s u y	( ) 4 8 ,	2 7 ,	( ) 7 5 ,
N f i i l i t t e n a n c a e m s	( 1 4 9 ) ,	( 4 5 ) ,	( 1 0 4 ) ,

Offshore Drilling Segment

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

Engineering & Fabrication Segment

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

Consolidated Balance Sheet

( S i ) U D l l m	Q 1 2 0 1 4	Q 4 2 0 1 3	C h a n g e

I i b l t t n a n g e a s s e s	1 6 5 ,	1 6 2 ,	0 3 ,
P l & i t t t r o p e r y, p a n e q u p m e n	2 5 9 5 9 ,	2 4 7 6 2 ,	1 1 9 7 ,
O h t t t e r n o n- c r r e n a s s e s u	2 4 7 ,	2 0 7 ,	0 4 ,
T l t t t o a n o n -c u r r e n a s s e s	2 6 3 9 8 ,	2 5 1 9 4 ,	1 2 0 4 ,

O h t t t e r c u r r e n a s s e s	3 2 5 7 ,	3 2 4 3 ,	1, 4
C h d h i l t a s a n c a s e q a e n s u v	3 9 8 7 ,	2 2 2 1 ,	1 6 6 7 ,
T l t t t o a c r r e n a s s e s u	2 4 4 7 ,	5 4 6 4 ,	1 8 0 7 ,
T l t t o a a s s e s	3 3 6 4 2 ,	5 3 0 6 8 ,	2 9 8 4 ,

E i t q u y	1 4 6 0 2 ,	1 4 3 6 9 ,	2 3 3 ,

N i b i d b t t t t o n- c u r r e n n e r e s e a r n g e	1 1 9 1, 4	6 6 2 2 ,	2 9 2 5 ,
O h l i b i l i i t t t e r n o n- c r r e n a e s u	1 3 0 6 ,	1 2 4 6 ,	6 0 ,
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	1 3 2 2 0 ,	8 6 8 7 ,	5 3 5 2 ,

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	1 6 4 7 ,	1 3 1, 2	4 2 5 ,
C l i b i l i i b i l d t t r r e n a e s n e s u w u	1 6 5 1 ,	5 1 3 6 ,	( ) 3 4 8 5 ,
O h l i b i l i i t t t e r c u r r e n a e s	2 4 0 5 ,	1 9 7 3 ,	4 3 2 ,
i i i i T l l b l t t t o a c u r r e n a e s	5 8 2 0	8 4 2 1	( ) 2 6 0 1
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	, 3 3 6 4 2	, 3 0 6 5 8	, 2 9 8 4
	,	,	,

Consolidated Cash Flow

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

Offshore drilling EBITDA and margin

Fleet status

R ig	Ty / de ig p e s n	W de h f t t p	Lo io t ca n	C l ie t n	Co tra t s ta tu n c s	Da ( in U S D ) te y ra	Ne C R t x su rv ey
U l -d d de i tra te te ts ee p w a r a n ep w a r u n
Bo l ls Do lp h in ta	S S / Mo ss	1 0 0 0 0	U K	C he vro n	Q Q 4 2 0 1 5- 4 2 0 2 0	5 6 0 0 0 0	Q 1 2 0 2 0
Bo le Do lp h in t te	Dr i l ls h ip	0 1 2 0 0	W A fr ica t es	An da ko a r	Q Q 2 2 0 1 4 2 2 0 1 8 -	4 8 8 0 0 0	Q 1 2 0 1 9
Be l for d Do lp h in	Dr i l ls h ip	0 1 0 0 0	Mo b iq za m ue	An da ko a r	Ja '1 2 De be '1 5 nu ary ce m r -	4 8 4 0 0 0	1 Q 2 0 1 5
for B lac k d Do lp h in	S S / A ke H- 3 r	0 7 0 0	U K Ire lan d U K U K	M P X Ca ico p r rn Ne xe n C he vro n Op ion t	Ju '1 4 -A '1 4 t ne ug us Au '1 4 No be '1 4 t g us ve m r - De be '1 4- Au '1 t 5 ce m r g us Se be '1 Ma h '1 te 5- 7 p m r rc Ma h '1 7- Ja '1 8 rc nu ary	4 1 9 0 0 0 4 6 7 0 0 0 4 2 8 0 0 0 4 2 8 0 0 0	Q 4 2 0 1 3
i f M dw te lo te No a r a rs rw ay
B i de for d Do lp h in	S S / A ke H- 3 r	0 1 0 5	No rw ay	S i l ta to Op ion t	Fe br '1 4 Fe br '1 7 ua ry ua ry - Fe br '1 Fe br '1 7 9 ua ry ua ry -	N O K 9 9 0 U S D 3 0 1 ' + N O K U S D ' 9 9 0 3 0 1 +	2 Q 2 0 1 4
Bo lan d Do lp h in rg	S S / A ke H- 3 r	0 1 5 0	No rw ay	Co ium t ns or Co ium * t ns or	Ja '1 0 Ap i l '1 4 nu ary r - Ap i l '1 4 Se be '1 te 7 r p m r -	O S N K 9 9 4 ' + U D 3 7 6 ' N O K 9 9 0 ' + U S D 3 4 ' 5	Q 4 2 0 1 4
for Br d d Do lp h in e	S S / A ke H- 3 r	0 1 5 0	No rw ay	Co t ium *** ns or	Oc Se to be '1 3 te be '1 5 r p m r -	O S N K 9 9 3 ' + U D 2 7 4 '	Q 2 2 0 1 7
M i dw f lo U K Br i l te te
a r a rs az - Bo Do lp h in rg ny	S S / A ke H- 3 r	0 2 3 0	Br i l az	Pe bra tro s	Se be '0 Ma '1 te 8- 4 p m r y	2 4 3 0 0 0	Q 4 2 0 1 4
By for d Do lp h in	S S / A ke H- 3 r	0 1 5 0	U K	B P Op ion t	Ap i l '1 3 Ap i l '1 6 r r - Ma '1 6 Ap i l '1 9 y r -	3 4 5 5 0 0	Q 1 2 0 1 5
Bo Do lp h in te rg s n	Te de / t n r s up p or	A H- 3	U K	To l ta Op ion t	Fe br '1 -M '1 3 6 ua ry ay Ju '1 6 Ju '1 7 ne ne -	/ inc l. c 2 0 2 0 0 0 2 4 0 5 0 0	i l c i bu ion ta tr t ap on Q 1 2 0 1 8
Bo ho lm Do lp h in rg	Ac da ion / t co mo	A H- 3	U K	S he l l B G Op ion t	Ma '1 3- Ju ly '1 4 y Au '1 Ap i l '1 t 4- 5 g us r Ma '1 5 Ju '1 5 ne y -	2 4 0 0 0 5 2 4 0 0 0 0 2 4 0 0 0 0	4 Q 2 0 1 7

Participants in the consortiums:

* BP, Total, E.ON Ruhrgas, OMV, Rocksource, Wintershall, Statoil ** Wintershall, Tullow Oil, E.ON Ruhrgas, Suncor Energy *** RWE DEA, Lundin, Noreco, Repsol

Financing

New bond loan of NOK 1 100 million raised in the Norwegian bond market

Final maturity in February 2019
Coupon of 3 months Nibor + 3.0%

Dividend

Proposed dividend of NOK 10 ordinary and NOK 10 extraordinary per share
Annual General Meeting to take place 27th of May 2014
Ex-dividend date 28th May 2014
Date for dividend payment is estimated to 20th June 2014

Global market outlook – floating units

In general, operators are revisiting development and exploration programs and the low contracting activity continued in all market segments
Decline in dayrates seen in most markets due to supply-demand gap
An increase in number of idle units can be expected

Norwegian floater market

Thight market in 2014 with first availability in 2015
Several units announced to leave Norway for contracts in other regions
Long-term, continued demand expected, with several requests for development projects in 2016/2017

ContractOption Yard/under construction

As per May 2014 Source: DNB

Average dayrates Norway

UK floater market

Low contracting activity also in this quarter, and few new requests expected in the next quarters
Relatively stable prospects in the accommodation segment

Average dayrates UK

Dayrates deepwater drilling units worldwide

Contract overview

Average contract length of ca. 28 months

Contract backlog

Total backlog ca. USD 4.3 billion

Bollsta Dolphin

Harsh environment ultra deepwater semi-submersible under construction
Moss Maritime CS 60 E (Enhanced) design from Hyundai Heavy Industries
Delivery is rescheduled to 3Q 2015
Block erection and keel laying commenced early April in Ulsan
Has secured a five-year contract with Chevron for operations West of Shetland in the UK sector

Ultra deepwater

Bolette Dolphin

Newbuild ultra deepwater drillship from Hyundai Heavy Industries delivered 21st of February 2014
Has secured a four-year contract with Anadarko for international operations
Is currently in Port Elizabeth in South Africa to load onboard equipment. Will continue mobilization to Liberia second week in May to commence the first drilling campaign

Belford Dolphin

Commenced a new four-year contract with Anadarko from January 2012
Operating offshore Mozambique
Next five-year class renewal survey to take place in 1Q 2015

Midwater - Norway

Borgland Dolphin

Continued operations under a four-year drilling contract with a consortium managed by RMN (Rig Management Norway) during the quarter
A new contract with another RMN consortium commenced in April 2014. Estimated duration is 3.5 years
Next five-year class renewal survey to take place 4Q 2014, including installation of a new BOP

Bideford Dolphin

Commenced a new three-year contract with Statoil end of January 2014
Entered into CCB yard end of April to undertake its five-year class renewal survey
The cost is estimated to USD 100 million with a 65 days yard stay

Midwater - Norway / United Kingdom

Bredford Dolphin

Continued under the 12-well contract with an AGR consortium. The contract is expected to expire end of 3Q 2015
During January 2014, the unit experienced a breach in riser joints under operation. The incident caused 25 days on zero rate
The class renewal survey was completed August 2012

Borgholm Dolphin

Currently under a one year contract with Shell
The unit completed a yard stay of nine weeks end of April. Upon recommencement, it was discovered additional issues with the anchoring system and the unit is now at Invergordon to undertake repairs
A new nine month contract with BG will follow, with estimated commencement in August 2014 after scheduled yard stay in July to increase the height of the pedestal
Class renewal survey was completed March 2013

Midwater - United Kingdom (cont.)

Byford Dolphin

Continued under a three-year drilling contract with BP Exploration, estimated to expire April 2016
The class renewal survey and installation of a new five ram BOP is scheduled to 1Q 2015

Borgsten Dolphin

Continued under the tender support services contract of 40 months duration with Total E&P UK. Two six month options exist under the contract
Completed class renewal survey and conversion to tender support vessel mid February 2013

Deepwater – United Kingdom / midwater Brazil

Blackford Dolphin

The unit is undertaking the five-year class renewal survey and upgrades at H&W yard
Additional need for structural work has been identified, with new estimated cost of USD 195 million and completion in June
After completion of the class renewal survey, the rig will commence two one-well contracts for MPX North Sea Ltd and Capricorn Ireland Ltd., followed by a nine month contract with Nexen and a 572 days contact with Chevron

Borgny Dolphin

Operating under a five-year drilling contract with Petrobras in Brazil.
It has been agreed to suspend the operations under the contract in May 2014
The unit will be re-exported from Brazil

Harland & Wolff

Focus on ship repair, ship building, steel fabrication and engineering services
Class renewal survey of Blackford Dolphin continued during the quarter
The engineering phase for fabrication of the Humber gateway offshore windfarm substation jacket continued, with completion in mid 2014

Summary

Financial

Revenues were 278 million
EBITDA was 102 million
Profit before tax was 23.5 million
Contract backlog amounting to approximately USD 4.3 billion
Estimated dividend payment date is 20th of June 2014

Operational

Blackford Dolphin undertaking class renewal survey and upgrades
Borgholm Dolphin undertaking yard stays for repairs
Bideford Dolphin commenced new contract with Statoil

Market

Borgny Dolphin contract with Petrobras agreed to discontinue from May 2014
Average contract duration approximately 28 months