DOF Subsea Group Q1 2019 highlights The operating revenue for the - PowerPoint PPT Presentation

Quarterly Presentation Q1 2019 DOF Subsea Group

Q1 2019 highlights • The operating revenue for the quarter was NOK 1 103 million 1) , EBITDA was NOK 365 million 1) and overall vessel utilisation was 67% As a result of the continued challenging market situation, the Group have experienced that • The joint venture with TechnipFMC took delivery of regular rollover (or refinancing) of existing loan the newbuild Skandi Olinda and the vessel facilities is very challenging. This new situation is commenced the 8-year contract with Petrobras. likely to result in the Group being in breach of its financial covenants in the near future and the The delivery of Skandi Olinda marks the successful Group being unable to repay (or rollover) certain conclusion of the JV’s and DOF Subsea Group’s of its existing loans when they fall due. The newbuild program management will commence a dialogue with the involved parties and believes it is possible to • Geoholm and Skandi Neptune have mobilised on reach agreements to solve the expected new contracts in the Red Sea and Guyana challenging situation for the Group, although no respectively assurance can be given that the Group will be successful in this respect. The effects of such • A continuing weak market has increased the breach is further described in note 6 Net interest- liquidity risk for the Group bearing debt to the quarterly accounts. • Increased refinancing and financial risk 1) Note: Figures according to management reporting DOF Subsea 2

DOF Subsea Group at a glance NOK 1.1bn 1) 1 170 2) 2005 NOK 14.7bn DOF Subsea Revenues Firm backlog Subsea employees established Q1’19 Q1’19 worldwide Q1’19 Integrated Modern 27 3) 73 Supplier of subsea State-of-the-art Subsea vessels ROVs offshore services asset base 1) Note: According to management reporting DOF Subsea 3 2) Note: Excluding marine crew 3) Note: Including chartered-in vessels Harvey Deep-Sea, Harvey Subsea, Skandi Chieftain and Skandi Darwin

Global footprint Bergen 259 3 Aberdeen NORTH AMERICA St John’s 331 10 ATLANTIC Houston Manila Brunei Kuala Lumpur Singapore Jakarta Luanda Darwin Macaé Rio de Janeiro 206 5 BRAZIL Perth ASIA PACIFIC Buenos Melbourne Aires 374 9 Local operating model ensuring on-the-ground responsiveness towards clients’ needs 1) Note: Number of employees as at end of Q1’19 (excluding marine crew). DOF Subsea 4 2) Note: Vessels in operation as at end of Q1’19, including 4 chartered-in vessels (excluding newbuild under construction).

More than a decade of structural growth and consolidation Development in number of DOF Subsea Employees 1) DOF Subsea established following the acquisition of Geoconsult. The Company was 1858 2005 listed second half 2005. 1667 1566 1492 1354 First Reserve acquires 49% of DOF Subsea, 1311 1278 1246 which in the following is delisted from the Oslo 1214 1170 2008 Stock Exchange 1014 897 Large and global organisation following multiple acquisitions from 2005-2010 553 563 Covus Subsea Century Subsea 2010 SWG Offshore CSL SEMAR 337 Awarded four PLSV long-term contracts in joint venture with TechnipFMC 2013 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q1 2019 Expanding organisation on the back of several Development in number of vessels in operation 2) large contract awards. Number of employees 27 27 27 and vessels peaking at 1 858 and 27, 26 2014 25 25 respectively 24 24 21 21 Focus on consolidation and streamlining of 18 business operations to improve efficiency and 16 competitiveness in weak market 2016 13 11 11 Delivery of two newbuilds entering into long-term contracts and commencement of two long-term IMR contracts 2017 Delivery of one JV newbuild entering into long- term contract and award of several long-term 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q1 contracts within both business segments and start 2018 Owned vessels Chartered-in vessels Total 2019 rebuilding the organization 1) Note: Marine crew not included DOF Subsea 5 2) Note: Newbuild not included 3) Note: Period-end numbers

Key financials 1) Revenue EBITDA 2) Firm backlog NOK million NOK million EBITDA margin NOK billion 25 2 500 40% 8 000 35% 7 000 20 2 000 30% 6 000 25% 5 000 15 1 500 20% 4 000 10 1 000 15% 3 000 2 000 10% 5 500 5% 1 000 - - 0% - 2012 2013 2014 2015 2016 2017 2018 Q1 2012 2013 2014 2015 2016 2017 2018 LTM 2012 2013 2014 2015 2016 2017 2018 LTM 2019 1) Note: Figures according to management reporting DOF Subsea 6 2) Note: EBITDA excl. profit from sale of non-current assets

Segment highlights

Two business segments DOF Subsea Group Long-term Chartering 1) Subsea / IMR Projects Framework Engineering Opex Long-term Vessel Capex agreements capabilities spending charters capabilities spending Revenues Q1’19 2) EBITDA Q1’19 3) Firm backlog 4) Revenues Q1’19 2) EBITDA Q1’19 3) Firm backlog 4) NOK 441 million NOK 328 million NOK 662 million NOK 38 million NOK 3.9bn NOK 10.7bn ~74% margin ~6% margin 1 170 Employees 18 vessels in 9 vessels in No newbuilds operation 5) Q1’19 Q1’19 operation Q1’19 as of Q1’19 1) Note: Long-term Chartering comprises 7 PLSVs in operation, plus Skandi Acergy and Skandi Patagonia 4) Note: Firm backlog as at end of Q1’19 DOF Subsea 8 2) Note: According to management reporting 5) Note: Including 3 chartered-in vessels 3) Note: According to management reporting

Subsea/IMR Projects Numerous projects completed and ongoing worldwide Built a leading subsea projects division for over a decade • Subsea project activity established with a global footprint in all key offshore regions • High quality asset base leveraging unrivalled subsea and vessel operating competence A clear action plan to pursue further opportunities • Continue to increase the scope and complexity of operations − Strengthen presence in selected geographies − Further build project backlog with core focus on IMR projects Selected IMR projects – Last 5 years Selected Mooring projects – Last 5 years  Petrobras DSV Contract (2018-2021)  Egina FPSO Hook-up (2018)  Petrobras RSV Contract (2018-2020)  Lam Son Mooring Replacement (2017)  ENI Angola IMR Contract (2017-2019)  Bergading FPSO Pre-Tensioning (2017)  Husky Energy IMR Contract (2017-2027)  Yinson OCTP FPSO Field Dev. (2016-2017)  Shell Prelude IMR Contract (2017-2022)  Bongkot Mooring Replacement PTTEP (2017)  Goliat Field Support ENI (2016)  Raroa Mooring OMV (2016-2017)  Chevron Gorgon IMR Contract (2015-2019)  Gina Krog TMRS Teekay (2016)  Shell Malampaya IMR Contract (2014-2021)  Catcher Mooring Installation BWO (2016)  ConocoPhillips ROV Services (2012 and onwards)  Goliat FPSO Marine Installation ENI (2011-2015)  ROV Support Vessel Petrobras (2011 and onwards)  Lam Son Mooring Installation PTSC (2014) DOF Subsea 9

Long-term Chartering DOF Subsea provides state-of-the-art vessels to leading players Skandi Acergy Skandi Acu Skandi Africa 9 No NOK 10.7bn vessels in contracted firm backlog operation newbuild per Q1’19 Construction Construction & pipe Construction & pipe support vessel laying vessel laying vessel Skandi Niteroi Skandi Patagonia Skandi Vitoria High-end vessels operating advanced Operations subsea projects for third party EPCI contractors Strong long-term contract coverage Contracts Construction & pipe Dive support Construction & pipe laying vessel vessel laying vessel Skandi Buzios Skandi Recife Skandi Olinda Remuneration Day-rate based Selected clients Construction & pipe Construction & pipe Construction & pipe laying vessel laying vessel laying vessel DOF Subsea 10

Selected long-term contracts Feb 2019 • Long-term contract with Petrobras Sep 2018 • 8 years + 8 years options • Long-term FLNG IMR contract • Vessel owned in joint venture awarded in Australia with with TechnipFMC Shell • Built in Brazil with 300t VLS • 5 years + 4 years options Skandi Olinda • IMR scope comprising project management, engineering, Aug 2018 logistics, vessel and ROV services Skandi Achiever • Utilising Skandi Darwin Jun 2018 • Long-term contract with Petrobras Skandi Salvador • 8 years + 8 years options • Vessel owned in joint venture with TechnipFMC Nov 2017 • Built in Brazil with 300t VLS Skandi Recife • Long-term DSV contract with Petrobras • 3 years + 2 years options • ROV and diving services Prelude FLNG • Long-term contract with • Partnered up with diving Petrobras in Brazil partner in Brazil • Vessel and ROV services DOF Subsea 11

1 st quarter 2019