Eqva ASA

Cancellation of shipbuilding contract

On 2 December 2015 Havyard Ship Technology AS

("Havyard") announced that an agreement was made with

the buyer of hull no. 126, a Havyard 833 WE platform

supply vessel, for postponement of the delivery time

of the vessel from March 2016 to June 2017.

The buyer has worked on several projects for long-term

charter of the vessel, which is a prerequisite for

obtaining long-term financing in today's market. The

buyer has not succeeded to obtain such long-term

charter / financing, and on 18 October 2016 Havyard

announced that the parties had agreed that the buyer

was going to pay an additional pre-delivery

instalment as a condition for a postponement of the

delivery time of the vessel until April 2019.

The buyer has now failed to pay the additional pre-

delivery instalment, and Havyard has therefore decided

to cancel the shipbuilding contract. Havyard will

claim compensation for its losses, and will work to

obtain a substitute sale of the vessel.

The cancellation will not result in net result

consequences for the financial year 2016/17. Paid pre-

delivery instalments are expected to cover estimated

losses as of today, but eventual future losses will be

dependent on the contract price of the project by a

substitute sale. Havyard stopped all progress on the

project on completion of the hull in autumn 2015 and

since then the hull has been laid up at the shipyard

in Leirvik i Sogn after agreement on compensation from

the buyer.

Havyard will now be free to dispose the project and

with the pre-delivery instalments paid by the original

buyer, Havyard will be in a good position for

completion or re-construction of the vessel for new

purposes. The cancellation will have no direct impact

on liquidity, and the goal is a completion and

delivery of the vessel within Q2 2019.

For further information, please contact:

CEO, Havyard Group ASA

Geir Johan Bakke

Mobile: (+47) 481 80 011

This information is subject to disclosure under the

Norwegian Securities Trading Act § 5-12.

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