Eidesvik Offshore — Interim / Quarterly Report 2016

Feb 28, 2017

FINANCIAL REPORT 4TH QUARTER 2016

FINANCIAL REPORT 4TH QUARTER 2016

In 4th Quarter 2016 Eidesvik Offshore ASA had consolidated

operating income of MNOK 209,4 (MNOK 343,2 in the

corresponding period in 2015). The revenues in 4th Quarter

2016 includes a termination fee of MNOK 35,3, (and in 4th

Quarter 2015 gain on sale of vessel of MNOK 92,8).

Operating profit before depreciations (EBITDA) was MNOK

135,9 (MNOK 232,2), and operating profit (EBIT) was MNOK

-215,6 after an impairment on the company's vessels of MNOK

303,5 (MNOK -115,6 after an impairment on the company's

vessels of MNOK 290,0 in 4th Quarter 2015). Net financial

items was MNOK -138,3 (MNOK -84,4). Profit after tax was

MNOK -353,2 (MNOK -202,3).

The group's consolidated operating income per 31.12.2016 was

MNOK 784,1, including termination fee related to the

contract for "Viking Vision" of MNOK 35,3. (Total operating

income pr 31.12.2015 was MNOK 1.238,9 including termination

fee for the "Vantage" contract of MNOK 22,2 and gain on sale

of vessels of MNOK 92,8). Operating profit before

depreciation (EBITDA) was MNOK 415,3 (MNOK 770,3), and

operating profit was MNOK -303,6 (MNOK 235,2) after an

impairment of the company's vessels of MNOK 508,8 (MNOK

290,0). Profit from joint ventures of MNOK 82,4 (MNOK 77,0)

is mainly related to operation of the two seismic

vessels "Oceanic Vega", "Oceanic Sirius" and the subsea

vessel "Seven Viking". Net financial items was MNOK -101,0

(MNOK -471,3).

Based on the weak and uncertain revenue outlook it is in

2016 decided to recognize an impairment charge of 7 supply

vessels and 1 subsea vessels totaling MNOK 508,8. The

assessment is based on value in use for the supply vessels

and net sales value for the subsea vessel. The Board is

aware of the low turnover for the type of vessels Eidesvik

owns, and that there is some uncertainty regarding the

values in the current market.

Profit after tax per 31.12.2016 amounted to MNOK -403,8

(MNOK -239,9), whereof MNOK -393,5 (MNOK -196,9) was profit

after minority interests. This gave a profit per share of

NOK -13,05 (NOK -6,53).

Contact: CEO Jan Fredrik Meling (TEL +47 916 75 119)