Presentation Q1-2019 23 May 2019 Operational update 5/23/2019 2 - PowerPoint PPT Presentation

Presentation Q1-2019 23 May 2019

Operational update 5/23/2019 2

Floatel Superior • In operation for Equinor at Martin Linge during the entire quarter • Firm period prolonged in April to end March 2020 with 6 monthly options thereafter • 100% utilization in Q1 Floatel Superior commenced operations for Equinor Martin Linge project end-July 2018 Floatel Superior relocated to Tromsø awaiting charter for Equinor 5/23/2019 3

Floatel Reliance • Quayside Tenerife with reduced manning awaiting new charter • Actively marketed for new work Floatel Reliance alongside Petrobras P-33 Campos Basin Floatel Reliance in Tenerife awaiting next charter 5/23/2019 4

Floatel Victory • In operations for Total at the Culzean field the entire quarter • Charter ends 17 June 2019 as Total notified in April that they will not exercise last option • 100% utilization in Q1 Floatel Victory commenced operation Total Culzean mid-July 2018 Floatel Victory at BP Clair Ridge 5/23/2019 5

Floatel Endurance • Transit to Singapore and dry-dock at Keppel FELS during the quarter for rectification works and SPS • Expected to be available in the North Sea early September 2019 • 100% Utilization in Q1 (Yard) Floatel Endurance ended operation for ENI at Goliat field on November 6 2018 Floatel Endurance at Keppel Fels Singapore for warranty work 5/23/2019 6

Floatel Triumph • Operations at Inpex Ichthys Project during the quarter and charter ended 3 March, 2019 • Thereafter transit to offshore Johor in Malaysia awaiting next assignment • 100% Utilization in the quarter including demobilization (idle from April) Floatel Triumph at Inpex Ichthys extended to March 2019 Floatel Triumph at its present location offshore Singapore 5/23/2019 7

Commercial update 5/23/2019 8

Backlog end of March 2019 Firm order book $66 million, option work $42 million Utilisation last 12 months: 75% Utilisation next 12 months*: 34% * Firm periods, paid standby transit and yard 1 400 000 Backlog firm Option backlog 1 200 000 2020 2021 43% 1 000 000 0% USD THOUSAND 800 000 600 000 2019 400 000 57% 200 000 Backlog distribution 2019-2021 0 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 including option work 5/23/2019 9

Current commitments 2018 2019 2020 Activity J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D FLOATEL SUPERIOR Total Martin Linge Standby period 2 (Norway) # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # Equinor Martin Linge Firm + Options (Norway) # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # Vessel maintenance and SPS (TBA) # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # FLOATEL RELIANCE # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # Idle Tenerife (Spain) # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # FLOATEL VICTORY # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # BP Clair Ridge (UK) # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # Vessel maintenance # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # Maersk/Total Culzean + Options (UK) # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # FLOATEL ENDURANCE # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # Vessel maintenance (Verolme, Rotterdam) # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # ENI Goliat (Norway) # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # Vessel maintenance and SPS (KeppelFELS, Singapore) # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # FLOATEL TRIUMPH # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # Inpex (Australia) # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # Key: Awarded Options Yard Paid Standby 5/23/2019 10

HSE update 5/23/2019 11

HSE Statistics – March 2019 TRIF (Total Recordable Injury Frequency) Fleet average for the last 12 months presented each month: Target 2019: ≤ 2.25 March 2019: 1.88 Total Recordable Injuries (Work Related Fatalities + Lost Time Injuries + Restricted Work Cases + Medical Treatment Cases) * 1.000.000 / Working hours 5/23/2019 12

Financial update 5/23/2019 13

Income Statement USD M Q1 2019 Q1 2018 2018 • 80% fleet utilization Charter revenues 58 47 232 • Incl. yard, transit and paid standby Catering and other recharges 13 12 56 • 2.75 rigs on hire, 0.25 dmob, 1.0 at yard Mobilization 2 2 15 Total Revenues 73 62 303 and 1.0 idle Operating expenses -23 -23 -121 • Stable quarter with EBITDA better than General & Administrative expenses -3 -4 -16 EBITDA 47 35 166 expected on the back of good cost EBITDA margin 64% 57% 55% control Depreciation and amortization -15 -15 -61 Operating profit 32 20 104 • Net financial items Operating margin 43% 32% 34% • Net interest and other financial expenses Net Finanacial items -15 -16 -68 Profit before tax 17 4 37 in-line with expectations • Limited FX –effects in the quarter Taxes -7 -3 -10 Profit after tax 10 1 27 5/23/2019 14

Balance Sheet USD M 31-mar-19 31-mar-18 31-dec-18 • $51m Net Customer Receivables = Property, plant and equipment 1 274 1 328 1 288 Trade receivables + Accrued revenues Deferred tax asset 0 1 1 Total non-current assets 1 274 1 328 1 289 • $101m in cash plus $82m undrawn RCF Inventory 24 20 24 • No restricted cash Trade receivables 32 23 24 Other current receivables 30 22 42 • Used RCF ($18m) = performance bonds Cash and cash equivalents 101 194 77 Total current assets 187 260 167 • Leasing debt mainly refer to offices – Total assets 1 461 1 588 1 456 to be recognized in BS from 2019 Total shareholder´s equity 557 522 547 according to IFRS Leasing debt - long term 1 0 0 Interest-bearing debt 801 1 003 810 • $14m finance fees reduces Interest- Total non-current liabilities 801 1 003 810 bearing debt Trade payables 7 6 11 Current portion of i-b debt 41 27 41 Income tax liabilities 7 5 4 • $23m in accrued interest as bond Other current liabilities 47 26 43 interest paid semi-annually Total current liabilities 103 63 99 Total equity and liabilities 1 461 1 588 1 456 • Ample headroom on all financial covenants 5/23/2019 15

Cash Flow Statement USD M Q1 2019 Q1 2018 2018 • Change in working capital driven by Operating result 32 20 104 reduced Net Customer Receivables Net interest paid -1 -12 -42 (Accrued revenues in Other changes) Income tax paid -3 -3 -11 Adjustment for depreciation and 15 15 61 • No capex in quarter- FE SPS to be Adjustments for other non-cash related 0 -2 -7 Total cash flow from operations recorded in Q2/Q3 43 18 106 before changes in working capital Changes in inventories 0 0 -3 • $10m repayment of BVF Changes in trade receivables -9 4 4 Changes in trade payables -4 -3 2 Other changes in working capital 6 7 -4 Cash flow from operating activities 36 25 105 Payments for property, plant and 0 0 -7 Net cash flow from investing 0 0 -7 Repayment of debt -10 -7 -806 Proceeds from debt 0 0 625 Other financial items paid -1 -1 -17 Proceeds from equity 0 0 0 Net cash flow from financing -11 -8 -197 Cash flow for the period 24 17 -99 Cash and equivalents, beginning of 77 177 177 Currency effect on cash 0 0 -2 Cash and equivalents, ฀ end of period 101 194 77 5/23/2019 16

Q&A 5/23/2019 17