Oceanteam ASA — Earnings Release 2016

Jun 23, 2017

OCEANTEAM ASA - REPORTS FY 2016 RESULTS

OCEANTEAM ASA - REPORTS FY 2016 RESULTS

Main financial indicators 2016

·       Operating income: USD 51.9 million

·       EBITDA: USD 22.2 million

·       Operating loss:  USD  9.1 million

·       Net finance (negative): USD 11.9 million

·       Net profit (loss): USD 23.3 million

·       Additional adjustments (compared to Q4 2016 report):

o       assets revaluation adjustment (negative): USD 17.8 million

o       additional assets write off (negative): USD 1.0 million

Major events in 2016

* Oceanteam ASA initiates financial restructuring through constructive

dialogue with its banks and bondholders. The revised bond loan agreement was

signed on 19 June 2017.

* CSV Southern Ocean remains under contract by Fugro TS Marine Australia until

end of 2018.

* McDermott notified Oceanteam that they will exercise its option to purchase

Oceanteam's 25 percent ownership in the vessel-owning company North Ocean

105 AS. The transaction was closed on 20 June 2017.

* Finanstilsynet (Financial Supervisory Authority) has initiated an audit

process on 31 August 2016, which was subsequently successfully closed during

Oslo/ Amsterdam - 23 June 2017. After having passed the final resolution on 19

June 2017 with a majority of its bondholders on refinancing its bond loan

agreement, the Dutch-Norwegian based offshore service provider Oceanteam ASA

("Oceanteam" or "Company") today announced its official FY2016 figures.

2016 revenues came in at USD 51.9 million and the Company recorded an EBITDA of

USD 22.2 million, both of which met market performance forecasts in what were

very challenging conditions. The Company maintains a significant share of its

revenues from its Solutions division, which came in at 41 percent in 2016.

For Oceanteam, FY2016 was a combination of business as usual and preparing the

Company for a future of high performance and returns, says CEO Haico Halbesma.

"The management and the teams of our operating companies were very much focused

on their day-to-day market opportunities and challenges. These included securing

our vessel charter rates and current backlog and tendering for new contracts,

especially in the field of equipment and engineering solutions. Additionally,

they were exploring new opportunities in areas such as renewable energy and

civil engineering."

In late October 2016, the Executive Board and management initiated proactive and

constructive talks with Oceanteam's bondholders and banks to discuss a new

capital foundation for the Company. On 19 June 2017, the Board passed the final

resolution on new terms with the Company's bondholders through a qualified

majority. "This final agreement reflects the firm belief held by all

stakeholders in the future direction and proven track record of our Company. As

we have stated earlier, this milestone embodies the joint and constructive

efforts of all of our stakeholders (bondholders, banks, the Halbesma family as a

major shareholder and the executive management team) to ensure the success of

this deal and a future of growth", Haico Halbesma states.

As a result of this agreement and the executed sale of the Lay Vessel North

Ocean 105, Oceanteam has secured the financing it needs and safeguarded its

continuity as a going concern. In June 2017, the new bond loan agreement became

effective. As a result the Company now has improved free cash flow and

structural lower interest costs, creating a healthy foundation for further

growth.

Business areas

Major events and developments (2016)

* CSV Southern Ocean will remain under contract by Fugro TS Marine Australia

until the end of 2018 and has options for extension.

* CSV Bourbon Oceanteam 101 has completed a dry dock period and started a new

time charter contract in Angola.

* Diavaz-Oceanteam Shipping (DOT) postpones the delivery of the CSV

Tampamachoco 1 for one year, with an option to delay for a second year.

Major subsequent events (2017)

* Oceanteam signs and executes bond loan agreement in June 2017.

* JV Fleet refinancing is expected to be finalised by end of June 2017.

* McDermott exercised its option to purchase Oceanteam's 25 percent ownership

in the vessel-owning company North Ocean 105 AS. The transaction was closed

on 20 June 2017.

Oceanteam Shipping

Operations North Ocean fleet

CSV Bourbon Oceanteam 101: CSV Bourbon Oceanteam 101: after successfully

completing a long-term charter with Oceaneering and BP Angola, the vessel

underwent SPS and certain upgrade in dry dock and the vessel started on a new

time charter contract in Angola for TOTAL SA. The contract is for a period of

three years plus options. The terms remain confidential, but the new charter

rate reflects the current rate levels within the market.

CSV Southern Ocean: which has been on long-term bareboat charter with Fugro TSM

Australia since its delivery in 2010. The vessel will remain under contract by

Fugro TS Marine Australia until the end of 2018 and has options for extension.

Lay Vessel North Ocean 105: was delivered in 2012 and has since been on a

contract with McDermott International and operates globally as a pipe layer.

McDermott exercised its option to purchase Oceanteam's 25 percent ownership in

the vessel-owning company North Ocean 105 AS. The transaction was closed on 20

June 2017.

Oceanteam Mexico SA de CV operates two Fast Support Vessels (FSV's), Tiburon and

Mantarraya. Tiburon and Mantarraya are still under bareboat charter with

Inversiones Setin. However, since Inversiones Setin is in breach of its

obligations under the contract and the Company has not received the charter hire

due thereunder, the Company has started legal proceedings against Inversiones

Setin. The outstanding receivable balance in the amount of USD 0.4 million has

been written off as doubtful debt as part of 4Q 2016 financial reporting.  An

impairment loss in the amount of USD 1.1 million has been provided during

4Q 2016 leaving the total net book value for these assets in the amount of USD

2.6million. Oceanteam management is closely monitoring the situation and is

taking the necessary measures to preserve the value of these assets.

DOT Shipping

In March 2014, Oceanteam took a 40 percent stake in the newly founded joint

venture DOT Shipping together with Diavaz. DOT Shipping successfully delivered

two FSV new builds, named Icacos and Cobos, in Q4 2014. Both vessels are fully

financed and have been operational in the Mexican market since March 2015, where

they operate under a seven year firm time charter contract with three one-year

options for extension.

DOT Shipping has a 50 percent stake in a large new-build construction support

vessel, named Tampamachoco 1, which is ready but DOT deferred this vessel

delivery with 1 year plus option for another year possible delay.

Oceanteam Solutions

Oceanteam Solutions is specialised in building demountable turntable systems

that easily can be delivered in 40ft containers to all ports globally. The

company designs and produces turntables in various sizes, for onshore and

offshore use and for a variety of cables, umbilicals, pipes or flowlines. The

Company provides full engineering design and consultancy services to clients in

the oil and gas and renewables industries. Oceanteam Solutions can also provide

services for complex structures both onshore and offshore. With the in-house

engineering experience and expertise, clients can contract the most effective

vessel and equipment solutions for their projects. Over the years Oceanteam

Solutions has built up a broad client base worldwide, to which the company

successfully supplies equipment and supports the client's offshore cable,

pipeline and umbilical installations, transport and storage projects. From our

base with deep-water quayside facilities in Velsen-Noord, the Netherlands, the

company can accommodate all sizes of vessels for mobilisation and demobilisation

with easy access to the North Sea.

Main operational projects Oceanteam Solutions (2016)

* Supplying demountable turntables and auxiliary equipment for the multiple

transport of cables from Asia to Europe.

* Supply of 4000T and 1100T turntables and equipment for the storage, splicing

and multiple loadouts at Oceanteam's base in Velsen (the Netherlands).

* The company entered a framework agreement to supply the client with future

equipment, transport and storage solutions, in addition to a major lay

spread contract.

* Multiple cable storage contracts.

* Various multi-discipline design engineering contracts.

* World's largest Ferris Wheel design, construction, lifting support continues

to create significant amount of work.

* Phase 1 Offshore Wind Park design in China completed and commenced phase 2.

* Solutions has been awarded with a subsidy from TKI-WoZ for the further

research and development of its Double Slip Joint (DSJ) concept.

Market outlook

Leveraging capabilities. The oil and gas market is expected to remain

challenging for the coming period. However, the Company's early focus on

offshore renewables, engineering and logistics solutions, plus its expansion in

certain geographical areas will help Oceanteam to safely navigate the current

market low as well as the structural changes in the oil and gas market.

Oceanteam is also in the process of creating new revenue sources in the fields

of civil engineering and offshore-related logistic solutions, making use of the

same core capabilities that have made Oceanteam the distinguished niche player

it is known as today.

Long-term commitment. The bondholders are continuing their support as

significant capital providers of the Company. As part of the new agreement they

have underlined the importance of maintaining continuity within and around the

Company and improving it in a structured way. This will include keeping in place

the existing executive and operational management, realising a slimmed-down cost

structure and appointing a bondholder representative to the Board on 9 May 2017.

Purpose. Oceanteam operates in a complex environment and executes complex

projects, which require a clear day-to-day commitment to safety, quality and

operational details. Even though the Company has gone through a turbulent

period, the Oceanteam staff and employees have never failed their commitments to

clients and have never lost sight of new market opportunities. Oceanteam has a

strong track record of delivering projects successfully under all circumstances

and 2016 has been no exception. The Company has started and completed numerous

projects, it has built new backlog, aligned its finances and laid a new

foundation for the future.

Believe and trust. To date, Oceanteam's Board has made a constructive effort to

reach the recent new agreement with the Company's bondholders. Mr. Hessel

Halbesma (Chairman) and Haico Halbesma (CEO), as founders, main shareholders and

Board members, have made personal commitments i.e. they have deferred

significant due payments to themselves and, contrary to the new terms proposed

by the bondholders, shared at least 50 percent of the Management Incentive

Programme with various group companies and key personnel.

This effort reflects the strong belief the Board has in the present business

opportunities and the Company's people to push their horizons of

entrepreneurship.

Amsterdam/ Oslo, 23 June 2017

Executive Management and Board

About Oceanteam ASA

The Company is comprised of two operating segments, Oceanteam Shipping and

Oceanteam Solutions. Oceanteam Shipping owns, charters and manages deep-water

offshore support vessels and fast support vessels. Oceanteam Solutions' focus is

to provide its clients with complete offshore solutions. Oceanteam ASA has been

active in the industry as an offshore solutions provider for over twelve years.

For more information: www.oceanteam.no

For further information about Oceanteam ASA please contact:

CEO Haico Halbesma: +31 20 53 57 570, haico@oceanteam.no

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.