Magnora ASA

Earnings Release • Feb 28, 2018

SEVAN MARINE ASA - Fourth quarter 2017 results

SEVAN MARINE ASA - Fourth quarter 2017 results

Lysaker, February 28th 2018, Summary and highlights from Sevan Marine's fourth quarter 2017:

- Operating revenue was NOK 16.3 million in the fourth quarter, up from NOK 12.8 million in the third quarter 2017. The increase was mainly due to Dana Western Isles royalty revenue. Adjusted EBITDA, excluding one-off items, was NOK -4.0 million, an improvement from NOK -7.6 million in third quarter.

- Operating costs, including one-off items, decreased by NOK 16.8 million compared to third quarter 2017 to NOK 22.6 million. Excluding one-off items, operating costs in the quarter were stable at NOK 20.4 million (NOK 20.4 million).

- Dana Western Isles started production in November 2017 and has produced steadily and in line with expectations. Sevan Marine is entitled to USD 0.5 per barrel produced and offloaded. The royalty for Q4 2017 was NOK 3.2 million.

- Sevan Marine is in a solid financial position. The company has no interest bearing debt, is in a net cash position of NOK 197.5 million as of Q4 2017 and has an equity ratio of 83 percent.

- The board of Sevan Marine will propose to the Annual General Meeting (AGM) a cash dividend of NOK 0.50 per share. The dividend will be paid after the AGM to be held on 24 May 2018. The board will also consider future dividends depending on the financial performance and future cash flow development in the company.

"In the past months we have secured license income from Dana Western Isles and the Shell Penguins Redevelopment project. These are two exciting milestones for Sevan Marine. With these contracts we have secured substantial income for the company for the coming years. We have also further demonstrated the cost effectiveness and acceptance of the concept by oil majors like Shell and ExxonMobil. With this improved outlook, it is also very positive that we are in a position to again pay a dividend to our shareholders", says Reese McNeel, CEO of Sevan Marine.

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Reese McNeel CEO will today at 10:00 CET (Oslo time) host a conference call for investors, analysts and other interested parties.

A Q&A session will follow the presentation and information on how to submit questions to management will be given at the beginning of the Q&A session. To participate to the management presentation of the results, please dial in 5-10 minutes prior to the start time using the numbers and confirmation code below.

Call in numbers:

Norway: +47 2100 2610

International/UK dial in: +44 (0)330 336 9105

The participants will be asked for their name, company and confirmation code. The Sevan Marine confirmation code is: 6277828

Presentation material that will be used during the call is attached and also available at www.sevanmarine.com. The presentation will be in English.

For more information please contact:

Reese McNeel, CEO, Sevan Marine ASA

reese.mcneel@sevanmarine.com

+47 415 08 186

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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 is a technology, design and engineering company. The company is developing, designing and delivering cost effective offshore solutions based on its unique cylindrical hull design and the HiLoad LNG offloading and regas technologies.