PACIFIC

RADIANCE

3QFY2014 & 9MFY2014 Results

Delivering Steady Growth

13 November 2014

Private & Confidential | 2

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Financial Results

Delivering Steady Growth | 4

• Improved utilisation of diversified, market-relevant OSV fleet

• Ongoing fleet rejuvenation programme

•Prompt deployment of newly delivered offshore support vessels

SNAPSHOT OF 9MFY2014

+7%►US$135m

Revenue

+8%►US$48.2m

Gross Profit

+57%►US$63.3m

PATMI

Delivering Steady Growth | 5

REVENUE GROWTH

9MFY2014

Higher revenue : Mainly from Offshore Support Services division which saw contributions from new

vessels joining the fleet.

3QFY2014

Lower revenue: Subsea unit saw lower utilisation and one of its diving support

vessels (‘DSV’) was drydocked for enhancement work

59.8

95.1

130.8

168.6

48.6 44.4

126.2 135.0

0

20

40

60

80

100

120

140

160

180

Revenue (US$'m)

Delivering Steady Growth | 6

STRONG CORE BUSINESSES Segmental Revenue Breakdown

9MFY2014:

Offshore Support Services: Remains Group’s key revenue contributor; revenue rose 19%

y-o-y to US$98.4m.

Subsea Services: Revenue down 14% y-o-y due to lower utilisation in 3QFY2014 and

drydocking of Group’s two diving support vessels for enhancement works

% o

f T

ota

l R

even

ue

95.0%

83.0% 84.0%

64.7% 65.6% 72.9%

12.0% 13.3%

27.0% 26.2% 21.0%

5.0% 5.0% 2.7% 8.3% 8.2% 6.1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY2010 FY2011 FY2012 FY2013 9MFY2013 9MFY2014

Offshore Support Services Subsea Business Complementary Business

Delivering Steady Growth | 7

14.8 18.5

32.1

55.5

10.6 13.1

40.4

63.3

0

10

20

30

40

50

60

70

PATMI (US$'m)

10.4

30.2

37.1

59.2

20.0

9.4

44.8 48.2

0

10

20

30

40

50

60

70

Gross Profit (US$'m)

ON TRACK FOR RECORD FY14 EARNINGS

Gross margin held steady at 36% in 9MFY14. Earnings from Offshore Support division

buffered Group from lower utilisation of its DSVs which also underwent drydocking for

enhancement works.

Lower gross profit for 3QFY2014 was attributable to Subsea division due to lower utilisation of

the DSVs and the drydocking of one of the DSVs during the quarter.

Newly delivered offshore support vessels helped to lift gross profit by 8% to US$48.2m.

Ongoing fleet rejuvenation programme and lower finance costs drove PATMI up 24%

for 3QFY2014 and 57% for 9MFY2014.

Delivering Steady Growth | 8

STRONG FINANCIAL POSITION

US$’000 As at 30 Sep 2014 As at 31 Dec 2013

Non-current assets 590,798 593,774

Current assets 253,845 152,095

Current liabilities 110,500 118,834

Non-current liabilities 307,935 249,584

Shareholders’ Funds 426,208 377,451

Net gearing (x) 0.5 0.6

The Group’s net gearing improved to 0.5x as at 30 Sep 2014.

Group net assets rose US$48.8m to US$426.2m on higher cash & cash equivalents,

amounts due from related companies, and investment in JVs and associates.

S$1 billion Multicurrency Debt Issuance Programme in August 2014 strengthens

Group position to drive its strategy forward. Group has issued S$100m 4-year fixed

rate notes at coupon rate of 4.3%.

Delivering Steady Growth | 9

POSITIVE OPERATING CASHFLOW

(US$’000) 3QFY2014 3QFY2013

Net cash generated from / (used in) operating activities 7,912 (19,586)

Net cash generated from / (used in) investing activities (10,896) (91,804)

Net cash generated from / (used in) financing activities 70,535 101,755

Net increase/ (decrease) in cash 67,551 (9,635)

Cash and cash equivalents at beginning of period 73,050 34,637

Cash and cash equivalents at end of period 140,601 25,002

Group generated US$7.9m in net cash from operations

Net cash used in investing activities was mainly for fleet expansion. Group recognised a

US$35.2m gain from the sale of 8 vessels in 9MFY2014. In 9MFY13, the sale of 6 vessels

brought a gain of US$12m.

Industry Prospects

Delivering Steady Growth | 11

SHALLOW & MID-WATER – STILL GOOD

Current weak oil prices remain above the break-even cost of production in the

shallow and mid-water segments

US$30-40/bbl in Southeast Asia; US$20-30/bbl in Caspian Sea^

Oil prices expected to straddle the $90-$100/bbl mark for the next five years on

average. Majority of major projects will be viable at these levels.*

Resilient and tested business model

Group’s diverse fleet primarily supports production in shallow and mid-water

O&G activities

Lower acquisition cost of newbuilds

^ Source: "Singapore Daily: Offshore & Marine – Singapore, UOB Kay Hian, 20 Oct 2014“

* Source: “Douglas-Westwood: Offshore Marine Asia, Market Outlooks & Opportunities”

Delivering Steady Growth | 12

BRIGHT SPOTS – WELL POSITIONED Expect E&P spending of national oil companies (NOCs) to continue to grow

NOCs have strategic agenda to shore up domestic oil production to maintain

self-sufficiency

OSV charter rates to remain relatively firm in high growth and/or cabotage-protected

markets

Growing population and affluence in emerging economies in Asia, Latin America and

Africa will drive energy demand

Expect global demand for subsea vessels to accelerate at 7% CAGR#

Global subsea vessel spending is forecast at US$122b for the 2015 - 2019 period

Field development and Inspection maintenance and repair (IMR) work remain key

drivers

IMR work to account for 39% of expenditure

Asia will be the single largest market with 20% of global expenditure, driven by

shallow water IMR and pipelay-related activities

# Source: “Demand for subsea vessels likely to increase says analyst”, Offshore Shipping Online, 23 October 2014

Delivering on Our Strategy

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Delivering Steady Growth | 14

DELIVERING STEADY GROWTH

Our diversified and market-relevant fleet, and geographic focus on high growth and

cabotage-protected markets have seen us through various oil & gas cycles. We aim

to deliver steady growth over the medium to long term.

Maintain a broad-based and relevant fleet

Continue to deepen and expand geographic reach in key emerging markets - Asia,

Latin America and Africa.

Continue to selectively expand the fleet through our newbuilding programme

Strengthen operational capabilities and improve cost efficiency by enhancing supply

chain

New ship repair yard to be completed in 2016 will cut costs and vessel

downtime, and also bring in a new income stream

Stay responsive and aligned to changes in the business environment where growth

opportunities still abound.

On track to post record results in FY14, barring unforeseen circumstances.

Thank You

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