Fourth quarter 2019

GC Rieber Shipping ASABergen 11 February 2020

Agenda

• Highlights Q4 2019

• Operational review

• Financial review

• Outlook

• Fleet utilisation of 84%1

• Net profit of NOK 7.6 million

• Net profit of NOK 269.4 million in Q4 2018, including non-cash gain of NOK 310 million as a result of Shearwater’s acquisition of Schlumberger’s marine seismic acquisition business

• Contract backlog of NOK 302 million as of 1 Jan. 20202

• Extension of the ongoing Polar King charter with Nexans by five months until July 2020

• Shearwater awarded several contracts for marine seismic acquisition projects and rates continue to reflect an improved marine seismic market

Highlights Q4 2019

1) Excluding marine seismic

2) Excluding marine seismic and options, including all contracts secured up until the reporting date for the interim report

• Shearwater completed the strategic vessel transaction with CGG, including the takeover of five high-end seismic vessels. Furthermore, a five-year capacity agreement for marine seismic acquisition services between Shearwater and CGG became effective

• New one-year charter contracts for the crew boats Polar Baikal and Polar Piltun, options for one additional year

Post-quarter events

Highlights Q4 2019 - Key financial figures

70

48

92

74

43

0

10

20

30

40

50

60

70

80

90

100

Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019

-62

41

65

42

-80

-60

-40

-20

0

20

40

60

80

100

Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019

REVENUE NOK million

EBITDA1

NOK million

-104

94

178

-120

-100

-80

-60

-40

-20

0

20

40

60

80

100

Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019

NET PROFITNOK million

1) Includes profit and losses from Joint Ventures

300 300274269

Operational ReviewQ4 2019

Total contract backlog of NOK 302 mill. as of 1 Jan. 20201

Including all contracts secured up until the reporting date for the interim report

79%

17%

0%

20%

40%

60%

80%

100%

From 1 Jan. 2020 2021

249

53

0

50

100

150

200

250

From 1 Jan. 2020 2021

CONTRACT COVERAGEUtilisation rate

CONTRACT BACKLOGNOK million

1) Excluding marine seismic and extension options

Subsea & Renewable Segment

• Fleet utilisation of 67% in Q4

• Polar King and Polar Onyx on charter for the entire period, Polar Queen idle for most of the quarter

• Outlook

• Polar Onyx on a fixed charter with DeepOcean until Q1 2021, with options for two more years

• Polar King on fixed charter with Nexans until July 2020

• Polar Queen has a five-months contract commencing in April 2020

66

44

6774

43

11

-10

2332

9

-20

20

60

100

Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019

Operating income EBITDA

Fleet utilisation (%)

KEY FIGURESNOK million

100 %100 %

67 %

Polar Onyx • SURF vessel, built

2014

• LOA: 130m

• Crane: 250mt

• VLS-tower: 275mt• Accommodation: 130

95 %

74 %

Polar King • CSV vessel, built

2011

• LOA: 111m

• Crane: 150 mt

• Accommodation: 112

Polar Queen• CSV vessel, built 2011

• LOA: 111m

• Crane: 150 mt

• Accommodation: 119

Joint Ventures – Ice/Support

• Ice/Support

• Fleet utilisation of 100% in Q4 2019 (100%)

• Polar Pevek on charter to Exxon Neftegas(ENL) until 2021

• Polar Baikal and Polar Piltun’s long-term contract with Sakhalin Energy Investment Corporation (SEIC) finished end 2019. New one-year contracts with SEIC secured from 2020 season, options for one additional year1

• Share of profit in Q4 2019 of NOK 12.6 million

11

4

7

17

13

0

5

10

15

20

Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019

Share of profit

KEY FIGURESNOK million

Polar Pevek• Ice breaking tug with

towing anchor

handling capacity

• LOA: 74m

• Oil spill drip tray and

oil containment

system installed

Polar Baikal

• Crew supply vessel

• LOA: 29m

• Used for crew

transport between

shore and installation

in North Eastern

Russia

• Pax: 70

Polar Piltun • Crew supply vessel

• LOA: 35m

• Used for crew

transport between

shore and installation

in North Eastern

Russia

• Pax: 70

1) Polar Baikal and Polar Piltun only operate for half the year, the

vessels are cold stacked in the winter season

Associated company - Marine Seismic(Shearwater)

• Marine Seismic (Shearwater)

• Shearwaters active fleet spent 87% of its time executing or positioning for acquisition contracts in the quarter

• Shearwater’s fleet counts 21 acquisition vessels, whereof 11 active today, and two source vessels

• GC Rieber Shipping’s Q4 2019 share of profit was NOK 21 million, including positive NOK 54 million P&L effect from insurance payment

• Outlook

• Backlog of 196 vessel months as of January 2020

• Continued high tendering activity and positive development in pricing level

• Shearwater has further strengthened its market position through the transaction with CGG

-63 -61

-8

1621

-80

-60

-40

-20

0

20

Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019

Share of profit

KEY FIGURESNOK million

• 18 High Capacity 3D Streamer Vessels

• 3 Multi Purpose Vessels

• 2 Source Vessels

Financial ReviewQ4 2019

Income Statement

NOK mill Q4 2019 Q4 2018 31.12.2019 31.12.2018

Operating income 43.1 70.2 257.3 231.9

EBITDA 42.3 273.7 86.9 254.9

EBIT 14.8 279.4 67.0 200.7

Net financial income and expenses -7.5 -13.8 -52.8 -52.6

Profit before tax 7.4 265.6 14.1 148.0

Net profit 7.6 269.4 14.4 148.1

Earnings per share 0.09 3.13 0.17 2.68

Number of shares (in million) 86.1 86.1 86.1 86.1

Balance sheet 31.12.2019

21254

54

1101

2632

1743

0

500

1 000

1 500

2 000

2 500

3 000

Assets Equity & Liabilities

Fixed assets

Other current

assets

Cash & liquid

assets

Equity

Long-term

liabilities

Current

liabilities

NOK million

• Total balance NOK 2.9 billion

• Equity ratio 60.1%, up from 57.5% at 31.12.2018

• Cash position NOK 212 million

• Net liabilities NOK 904 million

OutlookQ4 2019

Outlook

• Short-term market view

• Oil price development remains volatile

• Signs of improvement in some markets, but activity during the winter is expected to follow the historical trend of market slow down

• Expected market trends

• Subsea/renewables: Winter season is expected to be slow as the activity is low and many vessels are available in the market

• Marine seismic: Activity and rates continue to reflect an improved market

• Ice/support: Stable market