Viking Supply Ships

Viking Supply Ships A/S Interim Report Q3 2016 and update on financial restructuring

Press release

Total revenue for Q3 was MUSD 27.6 (27.2), of which vessel operations contribute

with MUSD 23.5 (24.5) and Services and Ship Management segments contribute with

MUSD 4.1 (3.7). The EBITDA for Q3 was MUSD 10.4 (5.7).

The operating result (EBIT) for Q3 was MUSD -1.2 (-21.9). The net result for Q3

was MUSD -9.0 (-29.5). The result for Q3 was negatively impacted by an

unrealized currency loss of MUSD 5.0 (loss of 3.9) and an impairment loss on the

PSV fleet of MUSD 6.5 (loss of 21.9).

The average fixture rate in Q3 was USD 53,300 (49,300) for the AHTS fleet and

USD 0 (5,700) for the PSV fleet. The average utilization in Q3 was 65% (63%) for

the AHTS fleet and 0% (39%) for the PSV fleet. These figures exclude the laid-up

vessels.

On 18 October 2016, a bankruptcy petition was approved towards the owner of Odin

Viking, Norseman Offshore AS. On 9 November, Odin Viking SPV AS, a company owned

by Kistefos AS, concluded on an agreement with the bankruptcy trustee, where

after Odin Viking SPV AS purchased Odin Viking and acquired the bareboat charter

party. On 9 November 2016, Odin Viking SPV AS and VSS A/S concluded on an

agreement to amend the terms in the bareboat charter party, including a

significant reduction in the bareboat rate.This finalizes the financial

restructuring of VSS A/S, subject to an equity issue at an agreed level in

Viking Supply Ships AB and a subsequent equity injection by the parent company

into VSS A/S. The equity issue is expected to be finalized before year-end 2016.

The restructuring will provide VSS A/S with a stable financial platform until

2020, subject certain vessel income levels.

For further information please contact:

Ulrik Hegelund, CFO, ph. +45 41 77 83 97, e-mail

Morten G. Aggvin, IR & Treasury Director, ph. +47 41 04 71 25, e-mail

Viking Supply Ships AB (publ) is a Swedish company with headquarter in

Gothenburg, Sweden. Viking Supply Ships A/S is a subsidiary of Viking Supply

Ships AB (publ).Viking Supply Ships AB (publ) is organized into four segments:

Anchor Handling Tug Supply vessels (AHTS), Platform Supply Vessels (PSV),

Services as well as Ship Management. The operations are focused on offshore and

icebreaking primarily in Arctic and subarctic areas. The company has in total

about 500 employees and the turnover in 2015 was MSEK 1,114. The company's B

-share is listed on NASDAQ OMX Stockholm, segment Small Cap,

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