Eidesvik Offshore — Investor Presentation 2020

Aug 26, 2020

Presentation 2nd Quarter 2020

August 26, 2020

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.

Neither the Company's nor any of its affiliates (nor any department in any of those entities), nor any such person's directors, officers, employees, advisors or representatives (collectively the "Representatives"), in any capacity, shall have any liability whatsoever arising directly or indirectly from the use of this presentation, including (but not limited to) as a result of any liability for errors, inaccuracies, omissions or misleading statements in this presentation.

Highlights in 2nd Quarter 2020

Aker BP awarded Eidesvik a contract extension for Viking Lady under the framework agreement between the parties. The firm period is four months and commencement is in direct continuation of the current contract in primo September 2020.

Eidesvik was awarded a contract for Viking Prince under the frame agreement with Aker BP. The firm contract duration is for four months with commencement in September 2020.

Eidesvik entered into amendments to its credit facilities with all of the Group's financial institutions for the period from July 1, 2020, to June 30, 2021. According to the amended agreements, the Group will defer the instalments on all its credit facilities during said period to the end of 2022, amounting to approximately MNOK 100. Interest will be paid as normal during the period. On certain terms, the Group may still pay the deferred instalments should the Group's liquidity position during the first half of 2021 be better than presumed.

Aker BP awarded Eidesvik a ship management agreement for the two supply vessels NS Orla and NS Frayja in operation on the Norwegian continental shelf. The contract will commence October 1, 2020.

Result Summary

(in million NOK)

	Q2 2020	Q2 2019
Revenues	144,3	209,6
EBITDA	33,1	96,2
Operating result	-41,9	39,2
Pre-tax result	44,4	30,3

7

Cash Flow (in million NOK)

	Q2 2020	Q2 2019	1.1- 30.6.2020	1.1- 30.6.2019	2019
Net cash flow from operating activities	49,5	24,2	100,9	35,9	172,0
Net cash flow from investment activities Net cash flow from finance activities	(4,5) (51,0)	(16,9) (40,7)	(27,1) (107,7)	(26,6) (115,2)	(54,4) (224,8)
Net changes in cash holdings	(6,0)	(33,4)	(33,9)	(105,9)	(107,3)
Cash at beginning of period Cash at end of period	380,5 374,5	443,2 409,8	408,3 374,5	515,6 409,8	515,6 408,3

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

Cash flow from investment activities in 2nd Quarter 2020 is mainly related to periodical maintenance of Vantage and Viking Avant.

Balance (in million NOK)

Debt maturity profile 30.06.2020

Consolidated total contract backlog Q2 2020 is MNOK 716 (incl. all new contracts per August 25, 2020)

Market

PSV

• Significant drop in drilling activity.
• Vessel utilization and term rates in the Quarter declined by 40% compared to 2nd Quarter 2019.
• Challenging winter season ahead.

Subsea

• The North Sea subsea fleet had utilization ranging from 60-70% at sustainable rate levels in the Quarter.
• Few outstanding vessel requirements globally for the coming winter season, and utilization and rate levels are expected to drop.
• Medium term vessel activity level is expected to be challenging as the main subsea entrepreneur companies redeliver third party vessels and report low tendering activity for both SURF and IMR projects.
• Subsea projects are mainly reported to be deferred rather than cancelled, indicating that the market balance should improve in a longer term perspective.

Seismic

• Some tender activity for source vessels for the first half of 2021 and beyond has been registered, and some deferred projects from 2020 may be expected to materialize in 2021 for Ocean Bottom Seismic and source vessels.
• The market remains challenging in the near term, and the development in 2021 will be dependent on oil price and operational challenges related to Covid -19 restrictions.

Results 2nd Quarter 2020

(in million NOK)

Operating revenue Q2

EBITDA Q2 2020 vs. Q2 2019 (MNOK -63.1):

Seismic: Decrease of freight income of MNOK 74.8, decrease in the total operating expenses of MNOK 5.0. Net decrease in EBITDA of MNOK 69.8.

Subsea: Increase of freight income of MNOK 10.0, increase in the total operating expenses of MNOK 4.5. Net increase in EBITDA of MNOK 5.5.

Supply: Increase of freight income of MNOK 0.6, increase of total operating expenses of MNOK 1.8. Net decrease of MNOK 1.2.

Of other freight income and operating expenses is the change in EBITDA an increase of MNOK 2.5.

EBITDA Q2

EBIT Q2*

* Termination fee, one-off effects in Profit from JVs and impairments are excluded (2020: MNOK -17.0, 2019: MNOK 38.6, 2018: MNOK 0)

Results per 30.06.2020

(in million NOK)

Operating revenue YTD

EBITDA YTD 2020 vs. YTD 2019 (MNOK -83.5):

Seismic: Decrease of freight income of MNOK 99.2, decrease in the total operating expenses of MNOK 4.3. Net decrease in EBITDA of MNOK 95.0.

Subsea: Decrease of freight income of MNOK 9.7, increase in the total operating expenses of MNOK 7.5. Net decrease in EBITDA of MNOK 17.2.

Supply: Increase of freight income of MNOK 26.2, increase of total operating expenses of MNOK 10.7. Net increase of MNOK 15.5.

Of other freight income and operating expenses is the change in EBITDA an increase of MNOK 13.1 (positive actuarial effect in Q1 2020 of MNOK 6.9).

EBITDA YTD

* Termination fee, one-off effects in Profit from JVs and impairments are excluded (2020: MNOK -9.9, 2019: MNOK 43.4, 2018: MNOK 0)

Segments

Incl. Share of Joint Ventures (in million NOK)

2nd Quarter 2020	Seismic	Subsea	Supply	Other
Revenue	10.2	84.4	62.6	4.9
EBITDA	-2.5	39.7	9.0	-4.3
EBIT	-24.5	-2.3	-9.4	-5.6
EBITDA margin	-24%	47%	14%	N/A
EBIT margin	-241%	0%	-15%	N/A

2nd Quarter 2019	Seismic*	Subsea	Supply	Other
Revenue	112.2	73.8	62.0	6.0
EBITDA	92.0	33.6	10.2	-6.7
EBIT	62.4	7.0	-8.2	-8.1
EBITDA margin	82%	46%	16%	N/A
EBIT margin	56%	9%	-13%	N/A

*In Q2 2019, Global Seismic Shipping AS ("GSS") was included as share of Joint Ventures in Seismic until June 4, 2019. GSS was then reclassified to Assets held for sale, and sold January 8, 2020.