Magnora ASA

Earnings Release • Nov 19, 2014

SEVAN MARINE ASA - Third Quarter Results - High activity within the core market segments

SEVAN MARINE ASA - Third Quarter Results - High activity within the core market segments

During third quarter, Sevan Marine has further

strengthened its position towards potential

contracts within its core market segments, which is

FPSO, FSO and FLNG

Main events and developments, third quarter 2014

- Continued high activity within the FPSO/FSO

market segment

Sevan Marine has during the quarter been working on

the FPSO pre-FEED for the Penguins field with Shell,

FPSO FEED phase for the Bream field with Premier, as

well as three potential FSOs for the Bentley, Sea

Lion and Culzean fields, respectively, in a

partnership with Teekay.

- Sevan's FLNG solution is gathering attention

among FLNG project developers for a cylindrical FLNG

hull with storage of 220.000 m³ and a liquefaction

capacity up to 2.5 mtpa. Sevan is currently in

discussions with several oil & gas majors as well as

specific project developers for the application of

the Sevan FLNG unit for projects worldwide.

Furthermore, Sevan's acquired technology for

offshore transfer of LNG, HiLoad LNG, is being

considered by a number of projects as the offloading

solution, as it improves safety, regularity and

flexibility by eliminating the need for expensive

dedicated LNG carriers.

- New Logitel agreements reduce risk and

strengthen floating accommodation initiative

In July, Sevan finalized an agreement with Teekay

that has opened a new line of business within the

accommodation market as well as reduced Sevan's risk

exposure relative to Logitel. Down payment of MUSD

30 of the convertible loan of MUSD 60 is secured by

the third quarter.

- Weak quarter for Topside and Process

Technology

The quarter was negatively impacted by start-up cost

for KANFA Aragon's subsidiary in Houston, Texas.

This business development initiative is expected to

significantly strengthen KANFA Aragon's market

position in the US LNG and FLNG markets. Further,

the margin on two process equipment packages has

been reduced.

- Operation and financial position

Operating revenue of USD 77.2 million was USD 5.9

million higher than first three quarters 2013.

EBITDA of USD 4.4 million was USD 2.2 million lower

than first three quarters 2013.

Cash position was 30.7 USD million as of end

September.

- Dividend policy

The Board has communicated a strategic target of

paying an annual dividend.

CEO Carl Lieungh comments: "We are pleased to see,

despite a challenging market environment, that the

activity level within our core area continues to

grow. This development calls for cautious optimism

in 2015, and I am confident that the Sevan

technology will prove its advantages going forward."

Main figures, third quarter 2014

Operating revenue for the third quarter 2014 was USD

25.2 million. EBITDA was positive with USD 1.5

million, and operating profit was USD 1.4 million.

Net profit was USD 1.3 million.

As of Q3 2014, cash and cash equivalents amounted to

USD 30.7 million, total assets were USD 164.5

million, and the equity ratio was 72.2 per cent.

Outlook

- Despite a generally negative sentiment in

the oil & gas market, the outlook is in general

perceived as positive for the FPSO/FSO market

segment from a Sevan perspective. This is supported

by a number of prospects which are about to reach a

degree of maturity with regard to final investment

decisions

- Increased focus on cost effective solutions

should be an advantage for Sevan

- There is significant market attention for

the Sevan FLNG and HiLoad LNG Offloading solutions

- The drilling segment is expected to remain

challenging in the short and medium term

- Teekay's entry into the FAU market is

positive for Sevan and is likely to generate

increased activity in the short and medium term

- The co-operation with Technip is expected to

open up a larger market for KANFA in terms of

project size and geographic reach

Read more in the attached report.

Carl Lieungh (CEO) and Kjetil Vangsnes (CFO) will

today at 1:00 p.m. (CET) give a presentation of the

results at Hotel Continental, Stortingsgaten 24/26,

Oslo.

The presentation will be in English.

The presentation will also be broadcasted LIVE on

www.sevanmarine.com.

It is recommended that you log on to the webcast 5

minutes in advance of the presentation.

If you wish to attend the presentation in Oslo,

please confirm by email: IR@sevanmarine.com

If you wish to call-in to listen to the

presentation, please find the call-in details

attached.

The information in this announcement is subject to

the disclosure requirements of the Norwegian

Securities Trading Act section 5-12 and/or the Oslo

Børs - Continuing Obligations.

Sevan Marine ASA is specializing in design,

engineering and project execution of floating units

for offshore applications, based on its patented

cylindrical floater technology. Sevan Marine ASA is

listed on Oslo Børs with ticker SEVAN. For more

information, please refer to www.sevanmarine.com.

For more information please contact:

Marit Ytreeide, Press Contact (Media)

+47 901 28 308 mobile

Carl Lieungh, CEO, Sevan Marine ASA (Media)

+47 37 40 40 00 office

Kjetil Vangsnes, CFO, Sevan Marine ASA (Analysts)

+47 37 40 40 00 office