Eidesvik Offshore — Investor Presentation 2018

Aug 22, 2018

Presentation 2nd Quarter 2018

Bergen 22.08.2018 CFO Thor Krukhaug

Disclaimer

This presentation has been produced by Eidesvik Offshore ASA (the "Company") based on information which is publicly available. This presentation is for information purposes only. Further to the aforementioned, this presentation is the result of an effort of the Company to present certain information which the Company has deemed relevant in an accessible format. The presentation is not intended to contain an exhaustive overview of the Company's present or future financial condition and there are several other facts and circumstances relevant to the Company and its present and future financial condition that has not been included in the this presentation. No representation or warranty (express or implied) is made or intended to be made as to the accuracy or completeness of any or all of the information contained herein and it should not be relied upon as such. The recipient of this presentation acknowledges that it will be solely responsible for its own assessment of the information.

This presentation contains forward-looking statements. Such forward-looking statements give the Company's current expectations and projections relating to its financial condition, the market in which it operates and the future performance of the Company. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company's control that could cause the Company's actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which it will operate in the future.

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News in 2nd Quarter 2018

Equinor have declared 8 monthly options for Viking Avant and the vessel is on firm contract until ultimo December 2018. Equinor have one yearly option thereafter.

News in 2nd Quarter 2018

Entered into a contract with SBM Offshore for "Viking Neptun". Contract commencement is in May, and is for over one month, included options.

News in 2nd Quarter 2018

The Joint Venture company Eidesvik Seven Chartering AS has entered into an agreement with Subsea 7 to amend and extend the contract for the subsea vessel Seven Viking. The new contract is firm to ultimo 2025 with option for further 1 year thereafter.

News after 30.06.2018

Entered into a contract with TechnipFMC for "Viking Neptun". Contract commencement is in August, and is for over one month, included options.

2nd Quarter 2018 results

(2nd Quarter 2017)

Revenues	MNOK 125,0	(215,8)
EBITDA	MNOK 20,6	(125,7)
Operating profit	MNOK -42,9	(243,4)
Pre-tax profit	MNOK -105,6	(203,9)

(Q2 2017 profits influenced by termination fee of MNOK 72,0, impairment of vessel of MNOK -22,8, and establishment of new JV including income contract change for Oceanic Vega and Oceanic Sirius.)

Results 2nd Quarter 2018

(in million NOK)

Operating revenue Q2

EBITDA Q2

EBITDA Q2 2018 vs. Q2 2017 (MNOK -105,1):

Seismic: Decrease of freight income of MNOK 18,0 and no termination fee of MNOK 72,0 in 2018, decrease in the total operating expenses of MNOK 4,2. Net decrease in EBITDA of MNOK 85,8.

Subsea: Decrease of freight income of MNOK 0,6, increase in the total operating expenses of MNOK 5,6. Net decrease in EBITDA of MNOK 6,2.

Supply: Decrease of freight income of MNOK 0,8, increase of total operating expenses of MNOK 10,6. Net decrease of MNOK 11,4.

Of other freight income and operating expenses is the change in EBITDA an decrease of MNOK 1,7.

EBIT Q2*

* Termination fee, impairments and one-off effects in Profit from JV are excluded (2018: MNOK 0, 2017: MNOK 262,7, 2016: MNOK 0)

Results pr 30.06.2018

(in million NOK)

Operating revenue YTD

EBITDA YTD

EBITDA YTD 2018 vs. YTD 2017 (MNOK -256,7):

Seismic: Decrease of freight income of MNOK 43,2 and no termination fee of MNOK 138,2 in 2018, decrease in the total operating expenses of MNOK 8,2. Net decrease in EBITDA of MNOK 173,2.

Subsea: Decrease of freight income of MNOK 28,3 and no gain on sale of vessel of MNOK 17,2 in 2018, increase in the total operating expenses of MNOK 9,8. Net decrease in EBITDA of MNOK 55,3.

Supply: Decrease of freight income of MNOK 9,6, increase of total operating expenses of MNOK 11,4. Net decrease of MNOK 21,0.

Of other freight income and operating expenses is the change in EBITDA an decrease of MNOK 7,2.

EBIT YTD*

* Termination fee, gain on sale, impairments and one-off effects in Profit from JV are excluded (2018: MNOK 0, 2017: MNOK 279, 2016: MNOK 0)

Cash Flow (in million NOK)

	2nd Quarter 2018	2nd Quarter 2017	1.1-30.6.2018	1.1-30.6.2017	2017
Net cashflow from operating activities	41,4	52,7	3,5	259,9	372,1
Net cashflow from investment activities Net cashflow from finance activities	(21,3) (46,1)	(1,0) (85,4)	(30,8) 9,5	376,1 (583,4)	401,4 (765,8)
Net changes in cash holdings	(26,0)	(33,7)	(17,7)	52,7	7,7
Cash at beginning of period Cash at end of period	565,8 539,8	636,1 602,4	557,4 539,8	549,7 602,4	549,7 557,4

Interest paid is categorized under financing activities, interest received is categorized under operating activities.

Balance (in million NOK)

Segments

Incl. Share of Joint Ventures (in million NOK)

2nd Quarter 2018	Seismic	Subsea	Supply	Other
Revenue	55,0	76,7	45,9	4,7
EBITDA	43,3	32,8	1,3	-8,3
EBIT	-2,0	5,8	-17,4	-8,6
EBITDA margin	79 %	43 %	3 %	N/A
EBIT margin	-4 %	8 %	-38 %	N/A

2nd Quarter 2017	Seismic	Subsea	Supply	Other
Revenue	63,4*	81,2	46,7	4,7
EBITDA	46,8*	38,6	12,6	-6,5
EBIT	-2,4*	11,9	-7,1	-7,0
EBITDA margin	74 %*	47 %	27 %	N/A
EBIT margin	-4 %*	15 %	-15 %	N/A

*Excl. impairment, termination fee and other one-off effects

Debt maturity profile 30.06.2018

Contract Backlog 30.06.2018

Contract coverage incl JV's 30.06.2018

Option Firm

Contract Status

Market

The North Sea PSV segment have seen some positive trends first half of this year. We experienced an increase in term contracts requirements with fixtures concluded at higher rate levels than over the last two years. An increase in exploration wells enhanced vessel demand on the Norwegian continental shelf, and moved the market close to balance over the summer season. We assume the North Sea market for the coming autumn and winter season to be some more challenging.

The subsea segment have been active this summer with good utilization for all vessel types ranging from smaller IMR vessels to the large construction vessels.

The O&G Walk to Work market as well as the renewable market have contributed positively. In the short term we expect utilization and rate levels to decrease during the coming winter season, however we remain positive to activity levels for this segment in medium to long term perspective.

The seismic segment experience an increase in tender activity, and it is expected a greater activity within both traditional seismic and node seismic ahead. We are positive to the seismic segment.

Thanks for Your attention!