Download - Siem Offshore Pareto Oil & Offshore Conference Siem Offshore – Company Profile 4 Background and status • Established in July 2005. • Owner and operator of Offshore Support Vessels

Siem Offshore

Pareto Oil & Offshore Conference 4 September 2013

CEO – Terje Sorensen

Disclaimer

2

This presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and

uncertainties that could cause actual results to differ. Such forward-looking information and statements are based on current

expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries

that are major markets for Siem Offshore (“SIOFF”) and its subsidiaries. These expectations, estimates and projections are

generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions. Important

factors that could cause actual results to differ materially from those expectations include, among others, economic and market

conditions in the geographic areas and industries that are or will be major markets for the Siem Offshore businesses, oil prices,

market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency

exchange rates and such other factors as may be discussed from time to time. Although Siem Offshore believes that its

expectations and the information in this Presentation were based upon reasonable assumptions at the time when they were

made, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in this

Presentation. Siem Offshore nor any other company within the group is making any representation or warranty, expressed or

implied, as to the accuracy, reliability or completeness of the information in the Presentation, and neither Siem Offshore , any

other company within the group nor any of their directors, officers or employees will have any liability to you or any other persons

resulting from your use of the information in the Presentation. Siem Offshore undertakes no obligation to publicly update or revise

any forward-looking information or statements in the Presentation.

There may have been changes in matters which affect Siem Offshore subsequent to the date of this presentation. Neither the

issue nor delivery of this presentation shall under any circumstance create any implication that the information contained herein is

correct as of any time subsequent to the date hereof or that the affairs of Siem Offshore has not since changed, and Siem

Offshore does not intend, and does not assume any obligation, to update or correct any information included in this presentation.

The contents of this presentation are not to be construed as legal, business, investment or tax advice. Each recipient should

consult with its own legal, business, investment and tax adviser as to legal, business, investment and tax advice. This

presentation is subject to Norwegian law, and any dispute arising in respect of this presentation is subject to the exclusive

jurisdiction of the Norwegian courts.

Agenda

3

1. Company Overview

2. Update on ongoing projects

3. Market Outlook

4. Appendix

b. Financials

c. Vessel Employment and Deliveries

a. Status

Siem Offshore – Company Profile

4

Background and status • Established in July 2005.

• Owner and operator of Offshore Support Vessels (“OSVs”)

• Main markets for the company currently in the North Sea, Brazil and West Africa.

• Recent expansion in Subsea Vessel segment (4x newbuilds)

• Breakthrough in Offshore Renewable Energy segment (Focus on installation of submarine power cables for

offshore windfarms).

Fleet • 38 vessels in operation.

• 10 vessels under construction.

Global Organization • Headquarter in Kristiansand, Norway.

• Regional offices in Brazil, Germany, the Netherlands, the U.S., Ghana and India.

• Some 1,300 employees (1,100 offshore and 200 onshore).

Strong financial position • Book equity ratio of approx. 44%, and secured bank debt to market value of fleet at ~50%.

• Contract backlog of firm contracts for vessels at USD 806m (excluding options) as of 30 June 2013.

• Contract backlog within submarine power cable activities of approximately USD 180m.

Listed on Oslo Stock Exchange • Market cap of approximately NOK 3.0bn1)

• Largest shareholder Siem Industries (34.2%) Note 1: As of close of trading August 28, 2013

Key Highlights - Continued growth since 2005

5

0

50

100

150

200

250

300

350

400

2005 2006 2007 2008 2009 2010 2011 2012

Fig

ure

s in

US

D m

illi

on

Operating revenue

Operating margin

In Operation 19 21 24 25 29 34 39

Ordered

Vessels

4 13 14 17 15 9 6

37

10

2005 2006 2007 2008 2009 2010 2011 2012

1)

Fleet overview - 38 vessels in operation and 10 vessels under construction

• Average age vessels in

operation

• PSV ~ 7 years

• AHTS ~ 3 years

• OSCV ~ 3 years

1) Incl. two vessels owned by a partner

PSV (3,300 – 4,700 dwt)

6

# 12

# 3

OSCV AHTS

Core Drilling Vessel

# 1

# 11

Smaller Brazilian vessels Well stimulation vessel

# 1

# 101)

Vessels in operation Vessels under construction (Delivery 2013, 2014 & 2015)

# 2

OSRV OSCV

# 3

PSVs

# 3

ISV

# 1

CLV

# 1

• Breakthrough in Offshore Renewable Energy

Market in 2012/2013 with several new contract

awards

• Awarded contract for E.On Germany for the

Amrumbank Offshore Windfarm

• Joint contract with J-Power Systems

Corporation (“JPS”) for the Innogy Nordsee 1

Offshore Wind Farm Project

• Baltic 2 Offshore Wind Farm project by EnBW

Baltic 2 GmbH.

• Total contract backlog of approx. USD 180 million.

• Continue to tender for other projects within the

Offshore Wind Farm market.

• Germany and UK the biggest markets.

• Potential demand for both new installation

vessels and maintenance vessels.

Siem Offshore Contractors (“SOC”) - a 100% owned subsidiary of Siem Offshore

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• Formed in 2003 and located in Leer, Germany.

• Provides complex engineering solutions and

services for installation, repair and maintenance of

submarine power cables.

• Competitive advantage in combining installation

expertise in SOC and asset base of Siem Offshore

• Installation support vessel (“ISV”) and Cable Lay

Vessel (“CLV”) under construction to support SOC

in upcoming projects.

Company Profile Status and Highlights

ISV (Delivery 2014)

CLV (Delivery 2015)

• Signed a back-to-back contract with M-I Swaco, a Schlumberger company, for the

Gudrun and Valemon field in the North Sea. The offshore operation is scheduled for

execution in second quarter 2014. The new PCD 5000 systems will be mobilized

and used for the planned operation.

• Siem WIS is ready for the Gullfaks operation, which is planned to commence in

third quarter 2013.

• Siem WIS is also in discussions for other projects for utilisation of the pressure

control device (“PCD”).

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Siem WIS - Technology for Managed Pressure Drilling

Scientific Core Drilling – JOIDES Resolution

• Overseas Drilling Limited is the owner of the scientific

core drilling vessel “JOIDES Resolution”.

• “JOIDES Resolution” is a dynamically positioned

drillship and floating laboratory carrying scientists from

all over the world.

• On time charter until end Sept 2013 with Integrated

Ocean Drilling Program (IODP), a research program

exploring Earth's history and structure.

• The time charter includes 10 x 1 year options, of which

IODP has exercised the first option (until Sept. 2014).

• Unique vessel and experience in niche market with

high potential profitability.

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Overseas Drilling Limited - a 100% owned subsidiary of Siem Offshore

Joides Resolution - Vessel Specifics

• Built: 1978 (Major Upgrade 2009)

• Length: 143 m Breadth: 21 m

• Gross tonnage: 10,282 t

• Accommodation: 130 persons

• Max endurance: 75 days

• Drilling capacity: 2,000 meters into

the seafloor in water depths of up to

7,000 meters

© Siem Offshore

Agenda

10

1. Company Overview

2. Update on newbuilding program

3. Market Outlook OSVs

4. Appendix

b. Financials


a. Status

Income Statement

Second Quarter January - June Twelve Months Ended

Amounts in USD million

2013

Unaudited

2012

Unaudited

2013

Unaudited

2012

Unaudited

2012

Audited

2011

Audited

Operating revenue 92.5 90.9 172.3 181.8 368.2 340.6

Operating expenses ( 51.2) ( 47.7) ( 100.3) ( 98.8) ( 210.8) ( 182.5)

Administration expenses ( 9.1) ( 10.4) ( 20.6) ( 20.9) ( 47.1) ( 35.2)

Operating margin [1] 32.2 32.8 51.3 62.0 110.3 123.0

Operating margin % 35 % 36 % 30 % 34 % 30 % 36 %

Depreciation and amortisation ( 18.3) ( 20.5) ( 36.9) ( 41.6) ( 82.7) ( 81.3)

Gain/(Loss) on sale of fixed assets 0.2 0.1 28.6 15.7 14.1 0.4

Gain/(Loss) FX contracts [2] ( 11.1) ( 0.3) ( 12.9) 3.6 12.5 1.5

Net financial items [3] ( 19.5) ( 29.6) ( 26.8) ( 31.9) ( 34.8) ( 47.3)

Profit before tax ( 16.5) ( 17.5) 3.3 7.8 19.4 ( 3.8)

Income tax provision ( 0.4) ( 0.3) ( 1.4) ( 1.5) ( 4.0) ( 2.7)

Net Profit (loss) ( 16.9) ( 17.7) 1.9 6.4 15.4 ( 6.5)

Net profit attributable to non-controlling interest ( 0.3) ( 0.1) ( 1.5) ( 1.2) ( 1.9) 0.8

Net profit attributable to shareholders ( 16.6) ( 17.6) 3.4 7.6 17.3 ( 7.3)

Earnings per share [4] ( 0.04) ( 0.04) 0.01 0.02 0.04 ( 0.02)

Average number of shares outstanding [5] 388,884 395,952 390,588 395,952 395,665 395,902

[1] Operating revenue less operating expenses

[2] Revaluation of off-balance sheet currency contracts entered into in order to hedge both operating expenditures and future yard instalments in

foreign currencies.

[3] Including revaluation of non-USD currency balance sheet items and mark-to-market effects on interest rate derivatives

[4] Net profit / Average number of shares outstanding (diluted)

[5] Weighted average number of shares outstanding (diluted) ('000) 11

12

Second Quarter January - June

Twelve

Months

Ended


2013

Unaudited

2012

Unaudited

2013

Unaudited

2012

Unaudited

2012

Audited

Net Profit (loss) ( 16.9) ( 17.7) 1.9 6.4 15.4

Unrealized (profit) loss on currency derivatives 13.7 1.0 18.2 (0.5) (6.9)

Unrealized (profit) loss on interest rate derivatives (4.5) 3.3 (6.5) 3.4 5.7

Other unrealized (profit) loss on currency positions 13.6 16.8 14.4 (9.6) (2.8)

Adjusted Net Profit (loss) 5.9 3.4 28.0 (0.3) 11.4

• Unrealised profit and loss from currency derivatives relates to financial instruments entered into in

order to hedge operational cash flows and future yard instalments in foreign currencies.

• Unrealised profit and loss from interest rate derivatives relates to mark-to-market valuations of financial

instruments entered into in order to manage interest rate risk.

• Other currency positions includes unrealized profit and loss from balance sheet items denominated in

foreign currencies in subsidiaries.

Adjusted Net Profit

Future Yard Instalments

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Future Yard Instalments Q3-2013 Q4-2013 2014 2015 Total

ISV 2.2 0.0 35.4 0.0 37.6

OSCVs 84.9 89.5 177.9 0.0 352.3

OSRVs 3.3 4.9 0.0 0.0 8.2

PSVs 3.0 3.0 107.3 0.0 113.3

CLV 0.0 8.0 4.0 63.8 75.8

Total 93.4 105.4 324.6 63.8 587.2

Debt facilities Q3-2013 Q4-2013 2014 2015 Total

ISV 0.0 0.0 0.0 0.0 0.0

OSCVs 71.6 68.0 142.7 0.0 282.3

OSRVs 1.4 4.3 4.3 0.0 10.0

PSVs 0.0 0.0 97.2 0.0 97.2

CLV 0.0 0.0 0.0 0.0 0.0

Total 73.0 72.3 244.2 0.0 389.6

• The Company has secured debt-financing for all vessels under construction in Brazil and

for the four OSCVs and one dual fuel large-size PSV under construction in Norway.

• Bank financing for the ISV under construction in Norway, and CLV under construction in

Poland is well progressed.

Statement of Financial Position

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30.06.2013

Unaudited

30.06.2012

Unaudited

31.12.2012

Audited

31.12.2011

Audited

Intangible assets 35.4 35.4 36.3 35.7

Vessels under construction 110.4 89.4 108.4 105.2

Vessels, equipment and capitalized project costs 1,288.5 1,404.2 1,272.3 1,428.1

CIRR loan deposits 45.6 53.0 53.2 56.5

Investment in associates and other long-term receivables 11.2 12.0 11.3 11.9

Debtors, prepayments and other current assets 69.9 94.9 149.9 85.4

Cash and cash equivalents 196.5 100.6 107.1 136.6

Total Assets 1,757.5 1,789.4 1,738.5 1,859.4

Total Equity 771.4 777.8 786.5 769.8

Borrowings falling due after 1 year 778.0 783.7 714.7 839.0

CIRR loan 45.6 53.0 53.2 56.5

Other non-current liabilities 29.2 28.4 24.3 34.3

Borrowings falling due within 1 year 73.6 77.7 82.3 95.5

Trade creditors and other current liabilities 59.7 68.9 77.5 64.4

Total Liabilities 986.1 1,011.7 951.9 1,089.6

Total Equity and Liabilities 1,757.5 1,789.4 1,738.5 1,859.4


• Current cost of debt approximately 4.5% p.a., including the effect of interest rate derivatives.

• Net interest bearing debt of USD 655 million.

Debt Maturity Profile 2013 (6M) - 2018

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• No major bullet maturities on bank loans

before 2015, limiting refinancing risk

• Scheduled balloon payment (re-financing) of

6 AHTS vessels in 2015 can be postponed

to 2018 subject to profile of vessel

employment.

• NOK 600 million (USD 99.5 million) of

unsecured bonds with maturity in 2018.

• Included debt financing of 4 x OSCV with an

average leverage of 70%.

• Newbuilds / vessels under construction

includes 3 PSVs, 4 OSCVs, 2 OSRVs, 1 ISV

and 1 CLV

• Main assumptions for vessels under construction

• Includes all 11 vessels under construction

• Average of 65% leverage

• 5 Year term

• 12 Year repayment profile

Agenda

16

1. Company Overview



4. Appendix

b. Financials


a. Status

Development in order backlog

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• Total order backlog of approx. USD 1bn as of

30th June 2013.

• For firm contracts for vessels

2013 – USD 142 million

2014 – USD 220 million

2015 onwards – USD 444 million

• USD 175 million in order backlog related to

Submarine Power Cables.

• Average firm contract length on current fleet at

1.4 years excluding options (3.3 years

including options) as of 30th June 2013.

• Tier 1 clients includes amongst others Statoil,

Petrobras, Total, Shell, Eni

Employment – Vessels in operation

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2013 2014 2015 2016

Vessel Type Ownership 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Siem Sasha PSV 100 %

Siem Sophie PSV 100 %

Siem Louisa PSV 100 %

Siem Hanne PSV 100 %

Siddis Skipper PSV 51 %

Siem Carrier PSV 100 %

Siem Supplier PSV 100 %

Hugin Explorer PSV 100 %

Siem Atlas PSV 100%

Siem Sailor PSV 51 %

Siem Pilot PSV 51%

Siddis Mariner 1) PSV 51%

Siem Marlin OSCV 100%

Siem Stork OSCV 100%

Siem Daya 1 OSCV 100%

Siem Pearl AHTS 100%

Siem Emerald AHTS 100%

Siem Sapphire AHTS 100%

Siem Aquamarine AHTS 100%

Siem Ruby AHTS 100%

Siem Topaz AHTS 100%

Siem Diamond AHTS 100%

Siem Amethyst AHTS 100%

Siem Garnet AHTS 0%

Siem Opal AHTS 0%

Contract Contract option Spot work

1) Employment for Siddis Mariner includes firm time charter with options for Siem Offshore Contractor which is expected to commence from end 3Q 2013.

Employment – Vessels in operation (cont.)

2013 2014 2015 2016


Big Orange XVIII WSV 41 %

Joides Resolution SPV 100 %

Marati OSRV 100 %

Marabá OSRV 100 %

Parnaiba FSV 100 %

Propriá FSV 100 %

Paracaru FSV 100 %

Capela FSV 100 %

Siem Piatã FCV 100 %

Siem Pendotiba FCV 100%

Siem Caetes FSP 100%

Siem Carajas FSP 100%

Contract Contract option Spot work

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Employment – Vessels under construction

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2013 2014 2015 2016


Brazil, Siem Maragogi OSRV 100 %

Brazil, Siem Marataizes OSRV 100 %

Brazil Siem Giant PSV 100 %

Norway, Siem Barracuda OSCV 100%

Norway, Siem Spearfish OSCV 100%

Norway, Siem Stingray OSCV 100%

Norway, Siem Moxie ISV 100%

Norway, Siem Symphony PSV 100%

Poland, ”TBN” CLV 100%

Poland, ”TBN” PSV 100%

Under Construction Contract

Contract USD 94 million



Contract option

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• The ISV and the CLV shall primarily be utilized by the subsidiary Siem Offshore Contractors for cable

installation projects within the offshore windfarm segment.

Agenda

21

1. General update on Siem Offshore


3. Market Outlook

4. Appendix

b. Financials


a. Status

3 x STX OSCV

Design STX OSCV 11L and STX OSCV 03

DP Class 2

Length 121 meters

Breadth 22-23 meters

Dwt 5000 T (max draught)

Accommodation 110 persons

Cargo Deck Area 1300 m2

Delivery 4Q 2013

2Q & 3Q 2014

Crane 250 ts AHC (+ one with additional 50ts AHC)

Builder Vard Brattvåg (NOR) ROV capacity ROV Hangar and Moonpool

Other Helideck

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• Eksportkreditt (Norway) CIRR commitment up to 80% of the contract amount (funding and

interest).

• Secured debt-financing for all three OSCVs under construction.

• Agreed 5 year firm contract with two yearly options for the first vessel delivered 30th of

August 2013.

• Agreed 5 year firm contract with two yearly options for the second vessel.

Newbuilding program

3 x STX OSCV under construction

2 x Platform Supply Vessel; VS 4411 DF

Design VS 4411 DF

DP Class 2

Length 89 meters

Breadth 19 meters

Draught 7.4 meters

Dwt 5500 T


Delivery 3Q 2014 and 1Q 2015 Cargo Deck Area 980 m2

Builder 1 x Hellesøy Verft (NOR) Other Dual fuel consumption, MDO and LNG

1 x Remontowa (POL)

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• Agreed 4 year firm contract with four yearly options with Total for the first vessel.

• Agreed 3 year firm contract with two yearly options with AS Norske Shell for the second

vessel.

• Eksportkreditt (Norway) CIRR commitment up to 80% of the contract amount (funding

and interest).

• Secured debt-financing for the PSV under construction in Norway.

Newbuilding program

2 x PSV Dual Fuel under construction

Siem Moxie - Installation Support Vessel; SX 163 X-Bow

Design SX 163 X-Bow

DP Class 2

Length 74 meters

Breadth 17 meters

Draught 6.4 meters

Dwt 2835 T


Delivery 1Q/2Q 2014 Cargo Deck Area 200 m2 usable

Builder Fjellstrand AS (NOR) Other active heave compensated gangway-

based offshore transfer system allowing

safe transfer of personnel to fixed and

floating structures

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• Vessel to be utilized in relation to contract work on offshore wind farms for our

100% owned subsidiary Siem Offshore Contractors GmbH (“SOC”).

• Eksportkreditt (Norway) CIRR commitment up to 80% of the contract amount

(funding and interest)

• Debt financing well progressed.

Newbuilding program

Installation Support Vessel under construction

Siem TBN - Cable Lay Vessel

Design Vard CLV 01

DP Class 2

Length 95.3 meters

Beam Breadth 21.5 meters

Max Draught 7.1meters


Cargo Deck Area 350 m2 usable

Delivery 2Q 2015 Cable Payload 4,250 tonnes

Builder Remontowa (POL) Cable carousel #1 2,500 tonnes

Cable carousel #2 1,750 tonnes

Other 360° panorama view bridge

25

• Vessel to be utilized in relation to contract work on offshore wind farms for our 100% owned

subsidiary Siem Offshore Contractors GmbH (“SOC”).

• Will be equipped with a state-of-the-art diesel-electric propulsion system, ensuring

excellent station-keeping capability as well as environmentally-friendly and fuel efficient

marine operations.

• The focus for the design of the CLV has been to meet the challenging requirements of the

installation, repair and maintenance of medium and high voltage submarine cable systems

within the offshore renewable energy and offshore oil and gas markets.

Newbuilding program

Cable Lay Vessel under construction

1 x PSV 4700 – Siem Giant

Design STX 09

DP Class 2

Length 87.90 meters

Breadth 19.00 meters

Draft 6.60 meters

Dwt 4700 T


Flag: Brazilian Deck cargo 2600 T

Delivery 2Q 2014 Power 6400 KW

Newbuilding program

1 x PSVs under construction in Brazil

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• Debt financed by Banco do Brasil and FMM.

Siem Maragogi and Siem Marataizes

DP Class 1

Length 56.80 meters

Breadth 14.00 meters

Draft 4.80 meters

Dwt 1300 T


Flag: Brazilian Deck cargo 500 T

Delivery 3Q and 4Q 2013 Power 4890 KW

Recovered oil 750 m3

Service speed 10 knot

Newbuilding program

2 x OSRVs under construction in Brazil

27

• Debt financed by Banco Nacional Development Social (“BNDES”) and FMM.

• Both vessels are under 8 year firm contracts with Petrobras.

Agenda

28

1. General update on Siem Offshore



4. Appendix

b. Financials


a. Status

Long-Term Market Outlook OSVs

29

• Long term Global demand for OSCVs:

• Based on an increasing number of subsea wells and installations the activity level

is expected to be high.

• Long-term North Sea demand for AHTS vessels and PSVs:

• Increased exploration, field development and number of fields on stream is

expected to lead to further demand for both high-end AHTS vessels and PSVs.

• Long-term Global demand for AHTS vessels and PSVs:

• Favorable outlook in Brazil based on firm contracts for Rigs, FPSOs and subsea

projects.

• Increasing demand in US GoM, West Africa and Oceania, especially on drilling

support.

• Prospects for harsh and/or remote areas (Barents Sea, Canada, US Alaska,

Brazil).

Global Rig and FPSO Market

30

• Total # UDW Drilling rigs currently working at 118, up from 109 twelve months ago (-12M).

• Total # North Sea Floater Rigs currently working at 40, same as twelve months ago (-12M).

• Total # Floater Rigs currently working in Brazil at 77, up from 73 twelve months ago (-12M).

• Total # Floater Rigs currently working in West Africa at 33, up from 30 twelve months ago (-12M).

• Total # FPSOs currently working/under construction at 193, up from around 181 twelve months

ago (-12M).

© Siem Offshore, ODS Petrodata

Global Drilling Market Global FPSO market

* = Ultra Deep Water (UDW)

Under Construction

Working


Global AHTS and PSV Market - Increased term demand from drilling support activity Y/Y

31

• Global term demand utilisation for AHTS > 15k bhp

currently at approximately 78%.

• Around 93% excluding the North Sea.

• Increased global term demand Y/Y, mainly due to

increased demand for drilling support in Brazil /

South America (+35%) and Southeast Asia (+60%).

• Partly offset by reduced term demand for

production support Y/Y in the North Sea and Brazil.

• Global Term Demand utilisation PSV > 3,000 dwt

currently at approximately 92%.

• Term demand growth Y/Y driven by increased

drilling support activity in all major regions.

• Especially US GoM (+35%), Brazil (+30%) and

the North Sea (+25%).

• Demand for production support activity is absorbing

supply growth in the North Sea and drives

demand growth in West Africa.

• More than 200 vessels under construction with

planned delivery next 12-18 months.

* utilisation = Term Demand / Total Active Fleet

North Sea AHTS and PSV Fleet

32

• The number of AHTS > 15k bhp operating in the

North Sea was relatively stable during 1H 2013.

• Current operating fleet at 50 vessels, of which

35 operate in the spot market.

• Total operating fleet reduced Y/Y due to vessels

departing for other regions.

• Lower term demand for production support than 12

months ago.

• Another 5 AHTS>15K bhp vessels under

construction could enter the region next 12 months.

• The current number of PSVs> 3,000 dwt operating

in the North Sea at approximately 205 vessels.

• Increased North Sea term demand for PSV > 3,000

dwt year-on-year.

• Term demand for drilling support and production

support up 25% and 20% respectively from

2Q12 to 2Q13.

• Reduced number of vessels operating in the

spot market Y/Y.

• Approximately 20 vessels to be delivered

from Norwegian yards next 18 months.


• The number of semis and drillships working in the

North Sea at 40 units following new entries in the

second quarter.

• Number of floaters in the North Sea expected to

increase >40 in 2013 based on firm contracts.

• New entries, including in the Barents Sea.

• Rigs returning from yard.

• More than 10 new floaters expected to enter the

North Sea in the period 2013 -16.

• The number of jack-ups working in the North Sea is

currently at 36 units.

• Contracted rigs currently at yard explains the

reduced number of working units compared to

1Q 13.

• Y/Y growth of two working jack-ups.

• The number of working jack-ups expected to

increase > 40 in 2013 based on firm contracts.

• Close to 10 jack-ups under construction set to

enter the North Sea in the period

2013-2015 based on firm contracts.


Demand: North Sea Rigs working - Number of working floaters increasing following new entries

33

+2 rigs y/y +1 rig y/y


Offshore Construction Vessel (OCV) market

34

• The Global Fleet of ROV/MSV/DSV Offshore

Construction Vessels >120m DP2+ has grown by

around 25 vessels from 2007 to YE 2012 to around

40 vessels (excluding Pipelay/Derrick Pipelay).

• Several new vessels ordered in 2012 and 2013, with

a majority to be delivered during next 12 to 18

months.

• Fleet will grow with minimum 50% the next 3 years

based on the current firm vessel orders at yards.

• Global number of X-mas Tree installations as a

leading indicator to this vessel segment expected

to double (IHS Petrodata) by year end 2015.

• Increasing number of X-mas Trees installed is

expected to create a growing market for IMR

services.

• Balanced supply/demand characteristics for the

period 2013 to 2015.

Global Fleet ROV/MSV/DSV vessels > 120m Global X-mas Tree installations

+ 45 -100%

End

35