GC Rieber Shipping — Earnings Release 2014

Feb 18, 2015

Fourth quarter 2014 Bergen 18 February 2015

17.02.2015 ¹ GC RIEBER SHIPPING

Agenda

• Highlights Q4 2014
• Operational review
• Financial review
• Summary and outlook

"Polar Marquis"

Highlights fourth quarter

• Stable and good operations
• Fleet utilisation of 100%
• Extension of bareboat charter for "RRS Ernest Shackleton"
• Proposed dividend of NOK 0.5 per share

"Polar Onyx"

Key figures

REVENUES

NOK million

EBITDA

NOK million

NET PROFIT NOK million

17.02.2015 ⁴ GC RIEBER SHIPPING

• January 2014, GC Rieber Shipping's shares in Reef Subsea AS were sold to HV V Invest Golf AS and HV V Invest Golf II AS, two companies owned by the private equity fund HitecVision V, LP
• Sale included a seller credit to the HV V Golf companies
• In February 2015, the HV V Golf companies defaulted on debt obligations, followed by bankruptcy in Reef Subsea and the HV V Golf companies
• Loss of provision per 31.12.2014 of NOK 211 million
• NOK 182 million related to the guarantee and seller credit incl. interests
• NOK 29 million related to accounts receivables

Operational Review Q4 2014

Extended bareboat charter for RRS Ernest Shackleton

• Extension of existing charter with British Antarctic Survey
• 1 year duration, effective from August 2015
• Remains 3 options of annual extension of the charter

"RSS Ernest Shackleton"

Construction of new seismic vessel upon completion

• Advanced 3D seismic vessel with 22 streamers and ice class 1A*
• To be named "Polar Empress"
• Expected delivery from Kleven Verft in April 2015
• 5 years contract with Dolphin Geophysical from delivery

"Polar Empress"

Contract backlog of NOK 3.4 billion* per 31 December 2014

17.02.2015 ⁹ GC RIEBER SHIPPING

Average duration of contract portfolio is 2.3 years

Note: Per 31 December 2014

* Newbuild vessel, to be delivered in April 2015

17.02.2015 ¹⁰ GC RIEBER SHIPPING

Subsea

• Fleet utilisation 100 percent
• 99 percent in Q4 2013
• Solid performance improvement YoY
• "Polar Onyx" in operations from primo March 2014
• Increased fleet utilisation
• EBITDA includes loss provision of NOK 29 million due to bankruptcy in Reef Subsea
• Market
• Uncertain and expectant
• Increased price pressure and timeconsuming decision processes

17.02.2015 ¹¹ GC RIEBER SHIPPING

Marine Seismic

• Fleet utilisation 100 percent
• 74 percent in Q4 2013
• Solid performance improvement YoY
• Less vessels in operation due to yard stay for "Polar Marquis" in Q4 2013
• Market
• Turbulent, marked by price pressure and weak earnings
• Sound order backlog

17.02.2015 ¹² GC RIEBER SHIPPING

Ice/ Support

• Fleet utilisation 100 percent
• 98 percent in Q4 2013
• Reduced performance YoY
• Expire of management agreement for "HMS Protector"
• EBITDA contribution of NOK 10 million from joint venture companies
• Market
• Generally stable development

KEY FIGURES

Note: As of 01.01.2014 joint ventures are booked as financial items using the equity method. All figures have been restated accordingly.

Financial review

Q4 2014

Income statement

Q4 2014	Q4 2013 (2)	FY 2014	FY 2013 (2)
258.5	175.6	881.5	745.5
130.2	72.4	453.5	389.3
78.6	40.8	280.2	621.9
-281.0	-108.8	-358.6	- 260.5
- 202.4	- 68.0	-78.5	361.4
-201.4	- 73.5	-80.1	371.0
104.2	2.9	253.8	81.8
-4.61	- 1.68	-1.83	8.50

(1) Profit bef. tax adjusted for unrealised currency gains/losses, profit from disposals and write-downs

(2) As of 01.01.2014 joint ventures are booked as financial items using the equity method. Figures from Q4 2013 and 31.12.2013 have been restated accordingly.

Balance sheet per 31.12.2014

• Total balance NOK 4 948 million
• Equity ratio 46.6 percent
• Solid cash position NOK 492 million
• Available revolving facility of NOK 250 million
• Net debt NOK 1 842 million
• Average duration of loan portfolio is 3.1 years

Outlook

• Market view short term
• Continued weak oil price enhances pressure on cost cuts and further reductions in the investment activity

• Uncertainties related to political risk in the Russian region upheld

• Expected trends in segments

• Subsea: Expectant, short term focus
• Marine Seismic: Challenging market and weak results
• Ice/support: Stable and unchanged activity

Summary

• Stable and good operations
• Extension of bareboat charter for "RRS Ernest Shackleton"
• Proposed dividend of NOK 0.5 per share

Post-quarter:

• Loss due to bankruptcy in Reef Subsea

"Polar Marquis"

/ THANK YOU FOR LISTENING !

Disclaimer

This quarter presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. Such forward-looking information and statements are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for GC Rieber Shipping ASA and its subsidiaries. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for GC Rieber Shipping's businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time. Although GC Rieber Shipping ASA believes that its expectations and the information in this Presentation were based upon reasonable assumptions at the time when they were made, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in this Presentation. GC Rieber Shipping ASA nor any other company within the GC Rieber Shipping Group is making any representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the information in the Presentation, and neither GC Rieber Shipping ASA, any other company within the GC Rieber Shipping Group nor any of their directors, officers or employees will have any liability to you or any other persons resulting from your use of the information in the Presentation. GC Rieber Shipping ASA undertakes no obligation to publicly update or revise any forward-looking information or statements in the Presentation.