Magnora ASA

Earnings Release • Feb 25, 2015

SEVAN MARINE ASA - Fourth Quarter Results

SEVAN MARINE ASA - Fourth Quarter Results

During the fourth quarter, Sevan Marine experienced

high activity in its core FPSO / FSO markets and

continued weakness in its Topside and Process

segment. Driven by the market outlook, numerous non-

cash charges had a negative effect on earnings

during the quarter.

Main events and developments, fourth quarter 2014

Continued high activity within the FPSO/FSO market

segment

During the quarter, Sevan Marine has provided

engineering and site support services for the

Goliat, Dana Western Isles and Logitel projects.

Sevan Marine continued to work on studies and

tenders for the potential FPSOs for the Bream

(Vette) and Penguin fields and the potential FSOs

for the Bentley and Culzean fields. These prospects

have for the most part all been postponed or delayed

in 2015 due to the rapid decline in the oil price

and the consequent market uncertainty and reduction

in investment levels.

FLNG remains a key initiative for Sevan Marine

Several meetings were held with oil & gas majors

regarding specific FLNG prospects. Sevan Marine

believes that the advantages of the cylindrical

design for FLNG, in combination with the HiLoad

technology, will make the design very competitive

versus shipshape solutions.

Weak quarter for Topside and Process Technology

The quarter was negatively impacted by KANFA AS

where project margins were reduced, as well as loss

provisions taken on certain projects. KANFA Aragon

continued to be negatively impacted by the costs for

its subsidiary in Houston, Texas.

Substantial non-cash charges taken in the quarter

A goodwill impairment charge of USD 5.9 million has

been taken with respect to Sevan Marine's 51 percent

holding in KANFA AS, and the deferred tax asset in

Sevan Marine of USD 8.0 million has been written

down in the period. At the same time, Sevan Marine

has approximately NOK 3.5 billion in total tax

losses which are not reflected on the balance sheet.

The strong depreciation in the NOK in Q4 generated a

book foreign exchange loss of USD 3.1 million

related to currency holdings.

Operation and financial position

Operating revenue of USD 102.4 million was USD 0.2

million lower than 2013. EBITDAFX of USD 6.9 million

was USD 1.0 million lower than 2013.

Cash of USD 27.3 million at year end was USD 13.9

million lower than 2013.

Dividend policy

The Board has communicated a strategic target of

paying an annual dividend. In the current situation,

Sevan Marine has however decided to suspend the

regular dividend for 2014. An extraordinary dividend

will be considered during the second half of 2015

provided that the financial situation allows for it.

CEO Carl Lieungh comments: "We continue to see many

areas where the Sevan technology will make an impact

in terms of providing cost effective solutions to

the oil & gas industry. However, 2015 will be a

challenging year and we have started a substantial

cost reduction exercise, as well as initiated a

strategic review, in order to meet both present and

future requirements to succeed."

Main figures, fourth quarter 2014

Operating revenue for the fourth quarter 2014 was

USD 25.2 million. EBITDA was positive with USD 1.2

million, and operating loss was USD 4.8 million. Net

loss was USD 15.9 million.

As of Q4 2014, cash and cash equivalents amounted to

USD 27.3 million, total assets were USD 144.8

million, and the equity ratio was 70.9 percent.

Outlook

- The increased focus on cost effective

solutions in the petroleum industry should be

favourable for the Company, as floating units based

on Sevan's technology represent inherent advantages.

- Sevan is working on several leads and

studies within the FPSO and FSO markets. However,

several projects have been postponed or delayed due

to the decrease in the oil price, and Sevan Marine

now believes it is less likely that any new license

agreements will be secured in 2015.

- The strategic relationship with Teekay has

developed well, and an important objective going

forward is to further strengthen the cooperation and

take advantage of opportunities generated with

respect to the FPSO/FSO and accommodation markets.

- In reaction to the revised market outlook

Sevan has initiated a comprehensive cost reduction

program and strategic options review with the

objective of establishing a solid foundation for

future profitable and sustainable growth.

Read more in the attached report.

Carl Lieungh (CEO) and Reese McNeel (CFO) will today

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

results at the Company's premises, Skøyen,

Verkstedveien 3, 0277 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

Reese McNeel, CFO, Sevan Marine ASA (Analysts)

+47 37 40 40 00 office