Sevan Marine ASA

Fourth quarter 2016

Oslo, February 21, 2017

Reese McNeel, CEO

Important information

This presentation and its enclosures and appendices (hereinafter jointly referred to as the "presentation") have been prepared by Sevan Marine ASA ("Sevan" or the "Company") exclusively for information purposes. This presentation has not been reviewed or registered with any public authority or stock exchange. Recipients of this presentation may not reproduce, redistribute or pass on, in whole or in part, the presentation to any other person.

The contents of this presentation are not to be construed as legal, business, investment or tax advice. Each recipient should consult with its own legal, business, investment and tax adviser as to legal, business, investment and tax advice.

There may have been changes in matters which affect the company subsequent to the date of this presentation. Neither the issue nor delivery of this presentation shall under any circumstance create any implication that the information contained herein is correct as of any time subsequent to the date hereof or that the affairs of the company have not since changed, and the company does not intend, and does not assume any obligation, to update or correct any information included in this presentation.

This presentation includes and is based on, among other things, forward-looking information and statements. Such forward-looking information and statements are based on the current expectations, estimates and projections of Sevan or assumptions based on information available to the company. Such forward-looking information and statements reflect current views with respect to future events and are subject to risks, uncertainties and assumptions. Sevan cannot give any assurance as to the correctness of such information and statements.

An investment in the company should be considered as an high-risk investment, and several factors could cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements that may be expressed or implied by statements and information in this presentation, including, among others, risks or uncertainties associated with the company's business, segments, development, management, financing, market acceptance and relations with customers, ability to implement cost reducing initiatives, the company's technology and offshore unit design, latent risks associated with divested businesses (including Teekay's / Logitel's ability to develop the accommodation business unit and repay the USD 60 million convertible loan in full), and, more generally, general economic and business conditions, including, but not limited to, within the oil and gas industry, changes in domestic and foreign laws and regulations, taxes, customs duties, vat or variations thereof, changes in competition and pricing environments, fluctuations in currency exchange rates and interest rates and other factors. Should one or more of these risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this document. The company does not intend, and does not assume any obligation, to update or correct the information included in this presentation.

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This presentation is subject to Norwegian law, and any dispute arising in respect of this presentation is subject to the exclusive jurisdiction of Norwegian courts.

Highlights - Q4 2016

12,000 engineering hours with Western Isles, UK Sector, FLNG for US Oil Major, Goliat and Wisting
Operating revenue for continued operations of USD 2.2 million
Cancellation of the Logitel units negatively affected revenues
Further cost reduction initiatives implemented, including further headcount reductions
Solid financial position
Cash position of USD 24.8 million and no interest bearing debt
Formal notification from TechnipFMC to exercise option to acquire Sevan Marine's 51% shareholding in KANFA AS

Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016

Operations

Current Activities Worldwide

Significant progress despite depressed offshore market

Sevan FPSO – Western Isles field

Start of transport to Europe expected in coming days
First oil planned for late 17
Plateau production is expected to be around 40,000 boepd, with a field life of 15 years
Continued support from Sevan Marine
Sevan Marine will receive USD 0.5 per produced barrel when in operation

Sevan FPSO – UK Sector Prospect

Sevan Marine entered into a license agreement for this prospect in Q4 2015
Payments under the license agreement remain subject to the field developers' final investment decision and start of construction of the unit,
Prospective license fee potential in late 2017 or 2018
Sevan Marine has carried out detailed engineering for the hull and continues to support the client

Sevan FLNG project

Operated by US based oil major
Sevan Marine was awarded in 2015 a study with a US oil major to explore the use of Sevan Marine's cylindrical hull for a specific FLNG development
Sevan Marine is now working on follow up studies focusing on the hull and marine aspects of Sevan Marine's cylindrical design
This study is expected to continue throughout 2017

Potential new developments

HiLoad LNG Offloading	Drilling unit for Mid-water harsh environment	Fish farming	Power hub for wind or subsea operations
• Strong interest from engineering partners	• New concept development	• New concept development	• Further development of existing concept
• Concept included as part of ongoing FLNG study	• Potential for cost savings by designing unit for niche market	• Looking to apply cylindrical design and knowledge to growing market	• Low cost, geo stationary, stable unit to handle power systems (potentially unmanned)

Financials

Financial highlights

Operating revenue for continued operations USD 2.2 million, down USD 0.4 million, negatively affected by cancellation of Logitel units of USD 0.6 million
EBITDA negative USD 1.4 million, impacted by restructuring costs of USD 1.0 million and write-down loss on rental agreements of USD 0.3 million

Revenues continued operations USD million

Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016

Substantial cost reductions achieved

Further reductions, including headcount, carried out
Target is to reduce cash burn to a minimum in 2017 in expectation of recovery in 2018/2019

Balance sheet composition

Balance sheet composition at year-end 2016 (USDm)

Cash and cash equivalents
USD 24.8 million for continued operations
Equity ratio of 60%
No interest bearing debt
ANP fine related to Piranema expected to be paid soon

Concluding remarks

Our focus

Building relationships with large oil companies to
Promote the proven Sevan Marine design and our specialty marine engineering services and to
Be well positioned to take advantage of opportunities in an improving market

Summing up

Expect work to continue with Western Isles, UK FPSO and FLNG projects
Cost reductions being carried out to meet expected reduced workload and minimize cash burn
Continued investment in the development of new applications
Positive interest and prospects going into 2017, particularly from Oil Majors for FLNG and Barents Sea and North Sea opportunities
Our strategy remains to be the world's leading provider of cylindrical floater designs, engineering and related services

Appendix

Profit & loss statement

USD million	Q4 2016	Q3 2016	2016	Q4 2015	2015

Continued operations
Operating revenue	2.2	2.6	14.0	5.8	28.3
Operating expense	-3.7	-3.5	-26.1	-8.5	-36.2
FX gain/(loss) relating to operation	0.1	0.0	-0.2	0.0	-0.4
EBITDA	-1.4	-0.9	-12.4	-2.7	-8.4
Depreciation, amortization and impairment	-0.7	-0.1	-0.9	-0.1	-6.3
Operating profit/(loss)	-2.2	-0.9	-13.3	-2.8	-14.7
Financial income/(expense)	-0.1	0.1	-13.1	0.0	-36.4
FX gain/(loss) relating to financing	-0.8	0.4	0.4	-0.6	-2.3
Net financial items	-0.9	0.5	-12.7	-0.6	-38.7
Profit/(loss) before tax	-3.1	-0.4	-26.0	-3.4	-53.4
Tax income/(expense)	0.0	0.7	0.7	-4.4	-4.8
Net profit/(loss) continued operations	-3.1	0.3	-25.3	-7.8	-58.1
Discontinued operations
Disposed group	-1.0	0.0	0.0	-0.3	-2.9
Disposal group classified as held for sale	-0.2	0.1	1.8	-0.3	-1.0
Net profit/(loss) discontinued operations	-1.2	0.1	1.7	-0.6	-3.8
Net profit/(loss)	-4.3	0.4	-23.6	-8.4	-62.0

Balance sheet

USD million	31.12.16	30.09.16	31.12.15

Fixed assets	0.2	0.5	0.6
Intangible assets	0.7	1.2	1.3
Loan	0.0	0.0	16.0
Other non-current assets	5.4	5.4	5.4
Total non-current assets	6.3	7.1	23.3
Trade and other receivables	2.6	14.2	26.7
Cash and cash equivalents	24.8	27.0	36.6
Total current assets	27.4	41.3	63.3
Assets held for sale	8.8
Total assets	42.5	48.3	86.6
Share capital	34.6	34.0	34.6
Other equity	-10.2	-6.3	8.4
Total shareholders' equity	24.4	27.8	43.0
Non-controlling interest	1.0	1.1	6.8
Total equity	25.5	28.9	49.8
Retirement benefit obligations	0.7	0.8	0.9
Other non-current liabilities/provisions	0.0	0.3	0.3
Total non current liabilities	0.7	1.1	1.2
Current liabilities	8.9	18.3	35.5
Total current liabilities	8.9	18.3	35.5
Total liabilities	9.7	19.5	36.7
Liabilities held for sale	7.4
Total equity and liabilities	42.5	48.3	86.6

Cash flow statement

USD million	Q4 2016	Q3 2016	2016	Q4 2015	2015

Cash flows from operating activities
Cash from operations	-1.0	-1.1	-4.7	-2.7	-4.9
Taxes paid	0.0	0.0	-3.5	-0.2	-0.9
Net cash generated from continued operating activities	-1.0	-1.1	-8.2	-2.9	-5.8
Net cash generated from discontinued operating activities	0.2	-3.6	-4.5	1.5	5.3
Net cash generated from operating activities	-0.8	-4.7	-12.7	-1.4	-0.5

Cash flows from investment activities
Purchase of property, plant and equipment (PPE)	0.0	0.0	0.0	0.0	-0.1
Purchase of intangible assets	0.0	0.0	0.0	-0.8	-0.8
Sale of shares KANFA Aragon	0.0	0.0	2.4	0.0	0.0
Repayment of Logitel loan	0.0	0.0	0.0	0.0	10.0
Net cash from continued investment activities	0.0	0.0	2.4	-0.8	9.1
Net cash from discontinued investment activities	0.0	0.0	0.0	0.0	0.0
Net cash from investment activities	0.0	0.0	2.4	-0.8	9.1

Cash flows from financing activities
Dividends paid	0.0	0.0	0.0	0.0	0.0
Net cash from continued financing activities	0.0	0.0	0.0	0.0	0.0
Net cash from discontinued financing activities	0.0	0.0	0.0	0.6	0.6
Net cash from financing activities	0.0	0.0	0.0	0.6	0.6

Net cash flow for the period - continued activities	-1.0	-1.1	-5.8	-3.7	3.4
Net cash flow for the period - discontinued activities	0.2	-3.6	-4.5	2.2	5.9

Cash balance at beginning of period	27.0	31.7	36.6	38.1	27.3
Cash balance at end of period	26.2	27.0	26.2	36.6	36.6
Cash balance at end of period continued operations	24.8	25.8	24.8	30.6	30.6
Cash balance at end of period discontinued operations	1.4	1.2	1.4	5.9	5.9

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