OTTO MARINE LIMITED 9 Temasek Boulevard #33-01 Suntec Tower Two, Singapore Tel: Fax: Regn No: M

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1 & ITS SUBSIDIARIES Registration Number: M 2013 FULL YEAR FINANCIAL STATEMENTS ANNOUNCEMENT TABLE OF CONTENTS Description Page 1. Consolidated Profit and Loss Statement Balance Sheets Consolidated Cash Flow Statement Statements of Comprehensive Income 8 5. Statements of Changes in Equity Audit Auditors Report Accounting Policies Changes in Accounting Policies Earnings and Net Asset Value per Ordinary Shares Review of Group Performance Variance from Prospect Statement Prospects Dividend Distribution Segmental Reporting Breakdown of sales Annual dividend Interested Person Transactions Disclosure in relation to Rule 704 (13) 20

2 (co regn no : M) Unaudited Full Year Financial Statements PART I INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF YEAR AND FULL YEAR RESULTS 1(a)(i) An income statement (for the group) together with a comparative statement for the corresponding period of the immediately preceding financial year The Group FY2013 FY2012 +/( ) US$'000 US$'000 % Revenue 511, , Cost of sales (465,521) (365,952) 27.2 Gross profit 46,474 8, Other income (Note 1) 92,670 22, Selling and administration expenses (Note 1) (90,403) (85,759) 5.4 Other expenses (4,967) (32,425) (84.7) Share of loss of associates and joint ventures (4,122) (2,246) 83.5 Finance costs (24,237) (22,292) 8.7 Profit (Loss) before income tax 15,415 (111,500) n.m. Income tax benefit (expense) 492 (2,200) n.m. Profit (Loss) for the year 15,907 (113,700) n.m. Attributable to: Equity holders of the Company 14,076 (103,133) n.m. Non controlling interests 1,831 (10,567) n.m. 15,907 (113,700) n.m. Note 1 Deconsolidation of a subsidiary 18, Gain on deconsolidation (included in other income) 64, Allowance for doubtful debts (included in selling and administration expenses) Please see section entitled Note on deconsolidation of a subsidiary on Page 16 for details. (45,318)

3 1(a)(ii) items, which if significant must be included in the income statement. The Group FY2013 FY2012 +/( ) US$ 000 US$ 000 % Depreciation of property, plant and equipment: Included in cost of sales 22,236 21, Included in administrative expenses (9.1) 22,934 22, Capitalized in construction in progress and inventories 2,426 4,486 (45.9) Interest on borrowings 25,360 26,910 (5.8) Included in finance costs 24,237 22, Capitalized in construction in progress and inventories 9,514 11,996 (20.7) 33,751 34,288 (1.6) Net profit (loss) for the year was stated after crediting (charging): Bad debts written off (668) (100.0) Allowance for doubtful debts: Trade (67) (18,537) (99.6) Non trade* (479) (18,428) (97.4) Impairment of available for sale (3,395) (100.0) investments Impairment of goodwill (3,436) (100.0) Impairment of property, plant and equipment (17,843) (100.0) Loss arising from the changes in the fair value of foreign exchange (4,523) (2,965) 52.5 forward contracts Loss on disposal of investment in subsidiary (247) (100.0) Reversal of profit upon cancellation of vessel construction (3,243) (100.0) contracts Provision for foreseeable losses and reversal of profits (11,909) (100.0) Gain (loss) arising from the changes in the fair value of interest (38) 278 n.m. rate swap contracts Gain on disposal of property, plant and equipment 17,682 20,457 (13.6) Gain on disposal of investment in joint venture Deconsolidation of a subsidiary 18, Gain on deconsolidation 64, Allowance for doubtful debts (45,318) Interest income (1.3) Share award expenses Reversal of unrealised profit for sale of vessel to associate (406) Net foreign exchange gain (loss) 8,881 (4,518) n.m. * Excludes the allowance for doubtful debts disclosed below under deconsolidation of a subsidiary. 2

4 1(b)(i) A balance sheet (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year Balance Sheets The Group The Company As at 31 Dec 2013 As at 31 Dec 2012 As at 31 Dec 2013 As at 31 Dec 2012 US$ 000 US$ 000 US$ 000 US$ 000 ASSETS Current assets Cash and bank balances 25,671 26,756 3,039 15,316 Fixed deposits 70,524 33,440 22,282 29,665 Trade receivables 317,499 74, , ,438 Gross amount due from customers for contract 85,015 76,899 work Current portion of finance lease receivables 14,878 Deposits, prepayments and other receivables 81,156 84, , ,829 Current portion of loan receivables ,440 77,440 Inventories 127, ,437 Derivative financial instruments 8,942 8,942 Total current assets 708, , , ,630 Non current assets Trade receivables 623 1,124 Loan receivables 8,800 9,000 Property, plant and equipment 521, , Goodwill 38,314 38,314 Investment in subsidiaries 180, ,480 Investment in associates and joint ventures 3,453 7,403 Available for sale investments Deposits long term 2,394 Deferred tax asset 919 Total non current assets 573, , , ,814 Total assets 1,281,706 1,177, , ,444 3

5 Balance Sheets The Group The Company As at 31 Dec 2013 As at 31 Dec 2012 As at 31 Dec 2013 As at 31 Dec 2012 US$ 000 US$ 000 US$ 000 US$ 000 LIABILITIES AND EQUITY Current liabilities Borrowings from financial institutions 231, ,114 1,296 27,771 Current portion of finance lease payables 5,234 10, Loan from related party 8,238 8,513 8,238 8,513 Trade payables 320, , , ,905 Gross amount due to customers for contract 16,395 1,119 work Other payables 71,530 59,061* 374, ,191 Deferred gain short term Current portion of loan payable 81,818 77,260 Derivative financial instruments 5, ,097 9,515 Income tax payable 2,151 2,126 1,200 1,200 Total current liabilities 661, , , ,804 Non current liabilities Borrowings from financial institutions 98, ,703 22,905 Finance lease payables 160,824 47, Loan from related party 8,878 10,642 8,878 10,642 Loan payable 29,592 Deferred gain long term 17,691 7,359 Derivative financial instruments Total non current liabilities 315, ,990 9,356 34,314 Total liabilities 977, , , ,118 Capital, reserves and non controlling interests Share capital 350, , , ,087 Capital reserves 1,546 1,546 1,546 1,546 Acquisition deficits (28,015) (28,595) Hedging reserves 96 Translation reserves 24,210 24,687 31,113 31,113 Accumulated losses (44,265) (58,341) (124,891) (99,420) Equity attributable to equity holders of the 303, , , ,326 Company Non controlling interests 78 (16,603) Total equity 303, , , ,326 Total liabilities and equity 1,281,706 1,177, , ,444 *Included in other payables is an advance from the controlling shareholder of US$4,800,000 (2012: US$3,549,000) 4

6 1(b)(ii) Aggregate amount of group s borrowings and debt securities Amount repayable in one year or less, or on demand As at 31 Dec 2013 As at 31 Dec 2012 Secured Unsecured Secured Unsecured US$ 000 US$ 000 US$ 000 US$ ,665 8, ,996 90,331 Amount repayable after one year As at 31 Dec 2013 As at 31 Dec 2012 Secured Unsecured Secured Unsecured US$ 000 US$ 000 US$ 000 US$ ,054 23, ,529 10,642 Details of any collateral The Group s borrowings are primarily secured by a personal guarantee from a director, fixed deposits, the mortgage of the relevant vessels and certain property, plant and equipment and inventory, shipyard contracts, insurance taken over the mortgaged vessels, charter agreements and income and proceeds from sale of vessels. 5

7 1(c) A cash flow statement (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year The Group FY2013 FY2012 US$ 000 US$ 000 Cash flow from operating activities: Operating activities Profit (Loss) before income tax 15,415 (111,500) Adjustment for: Share of losses of associates and joint ventures 4,122 2,246 Depreciation of property, plant and equipment 22,934 22,424 Interest expense 24,237 22,292 Interest income (753) (763) Reversal of unrealised profit for sale of vessels to associate 406 (Gain) Loss arising from changes in fair value of: Interest rate swap contracts 38 (278) Foreign exchange forward contracts 4,523 2,965 Gain on disposal of investment in joint venture (235) Gain on deconsolidation of a subsidiary (64,015) Loss on disposal of investment in subsidiary 247 Foreign exchange (gain) loss (4,211) 3,162 Property, plant and equipment written off 2 21 Gain on disposal of property, plant and equipment (17,682) (20,457) Share award expense 718 Bad debts written off 668 Allowance for doubtful debt: Trade 67 18,537 Non trade 45,797 18,428 Impairment loss of goodwill 3,436 Impairment loss of property, plant and equipment 17,843 Impairment loss of available for sale investment 3,395 Operating cash flows before movements in working capital 31,363 (17,334) Trade receivables (110,798) 4,524 Construction work in progress 14,967 21,202 Finance lease receivables ,100 Other receivables, prepayments and deposits (2,713) (5,831) Inventories 119,347 (23,299) Trade payables 66,159 3,898 Other payables 37,107 19,106 Cash generated from operations 156,210 62,366 Income tax paid (389) (1,000) Interest received Net cash from operating activities 156,574 62,129 6

8 The Group FY2013 FY2012 Group US$ 000 US$ 000 Investing activities Investment in joint venture (441) Investment in associates (1,277) Proceeds from disposal of investment in joint venture 797 Loan receivables 441 (4,941) Purchase of property, plant and equipment (99,872) (63,870) Proceeds from disposal of property, plant and equipment 14,790 44,853 Net cash used in investing activities (85,121) (24,399) Financing activities Proceeds on borrowings from financial institutions 356, ,396 Repayment of borrowings from financial institutions (393,304) (392,159) Proceeds from finance lessors 63,042 (2,198) Repayment of loan from a related party (2,039) (2,080) Repayment of loan from MTN programme (80,878) Proceeds on issue of shares, net of expenses 49,611 59,983 Interest paid (30,032) (32,506) Deposits pledged for borrowings from financial institutions net (33,709) (1,103) Net cash used in financing activities (70,911) (60,667) Net increase (decrease) in cash and bank balances 542 (22,937) Cash and bank balances at beginning of year 46,820 69,251 Effects of exchange rate changes on the balance of cash held in foreign currencies Cash and bank balances at end of year 48,034 46,820 Cash and bank balances at end of year include the following: Cash and bank balances 25,671 26,756 Less: Bank overdraft (1,318) 25,671 25,438 Fixed deposits 70,524 35,834 Less: Deposits pledged for borrowings from financial Institutions (48,161) (14,452) Deposits earmarked for refund guarantee and other fixed Deposits 22,363 21,382 Total 48,034 46,820 7

9 1(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER FY2013 FY2012 US$'000 US$'000 The Group Profit (Loss) for the year 15,907 (113,700) Other comprehensive income (expense): Exchange differences on translating foreign operations (373) 1,567 Fair value changes arising from cash flow hedge (96) 469 Share of other comprehensive income of associates 73 Return of capital upon disposal of investment in a subsidiary 334 Other comprehensive income (expense) for the year, net of tax (396) 2,370 Total comprehensive income (expense) for the year 15,511 (111,330) Total comprehensive income (expense) attributable to: Equity holders of the Company 13,503 (100,763) Non controlling interests 2,008 (10,567) 15,511 (111,330) The Company Loss for the year (25,471) (73,144) Other comprehensive (expense): Exchange differences on translating foreign operations 1 Other comprehensive income (expense) for the year, net of tax (25,471) (73,143) Total comprehensive income (expense) for the year (25,471) (73,143) Total comprehensive income (expense) attributable to: Equity holders of the Company (25,471) (73,143) Non controlling interests (25,471) (73,143) 8

10 STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 31 DECEMBER Group 2013 Share capital Capital Reserves Acquisition Reserves (Deficits) Hedging Reserves Translation Reserves (Deficits) Accumulated Profits (Losses) Attributable to equity holders of the Company Noncontrolling interests Total Equity US$ 000 US$ 000 US$ 000 US$ 000 US$ 000 US$ 000 US$ 000 US$ 000 US$ 000 At 1 Jan ,087 1,546 (28,595) 96 24,687 (58,341) 239,480 (16,603) 222,877 Share award, net of expense Deconsolidation of a subsidiary ,673 15,253 Rights issue, net of expense 49,611 49,611 49,611 Total comprehensive income (expense) for the year (96) (477) 14,076 13,503 2,008 15,511 At 31 Dec ,416 1,546 (28,015) 24,210 (44,265) 303, ,970 9

11 STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 31 DECEMBER (CONT D) Group 2012 Share capital Capital Reserves Acquisition Deficits Hedging (Deficits) Reserves Translation Reserves Accumulated Profits (Losses) Attributable to equity holders of the Company Noncontrolling interests Total Equity US$ 000 US$ 000 US$ 000 US$ 000 US$ 000 US$ 000 US$ 000 US$ 000 US$ 000 At 1 Jan ,104 1,212 (12,305) (373) 23,120 44, ,550 (18,938) 277,612 Acquisition of additional shares in a subsidiary (16,290) (16,290) 12,902 (3,388) Rights issue, net of expense 59,983 59,983 59,983 Total comprehensive income (expense) for the year ,567 (103,133) (100,763) (10,567) (111,330) At 31 Dec ,087 1,546 (28,595) 96 24,687 (58,341) 239,480 (16,603) 222,877 10

12 STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL YEAR ENDED 31 DECEMBER (CONT D) Capital Translation Accumulated Total Share capital Reserves Reserves Losses Equity COMPANY US$'000 US$'000 US$'000 US$'000 US$' At 1 Jan ,087 1,546 31,113 (99,420) 233,326 Share award, net of expense Rights issue, net of expense 49,611 49,611 Total comprehensive expense for the year 1 (25,472) (25,471) At 31 Dec ,416 1,546 31,114 (124,892) 258,184 Capital Translation Accumulated Total Share capital Reserves Reserves Losses Equity COMPANY US$'000 US$'000 US$'000 US$'000 US$' At 1 Jan ,104 1,546 31,112 (26,276) 246,486 Rights issue, net of expense 59,983 59,983 Total comprehensive income (expense) for the year 1 (73,144) (73,143) At 31 Dec ,087 1,546 31,113 (99,420) 233,326 11

13 1(d)(ii) Details of any changes in the company s share capital arising from rights issue, bonus issue, share buy backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares for cash or as consideration of acquisition or for any other purpose since the end of the previous period reported on. State also the number of shares that may be issued on conversion of all the outstanding convertibles as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year. Pursuant to the Otto Marine Share Award Scheme, 10,512,800 shares were issued resulting in an increase in share capital by US$718,000. Out of the 10,512,800 shares, 1,401,800 shares were issued to current and past non executive directors in satisfaction of 30% of the directors fees for the year ended 31 December 2012 pursuant to a resolution passed at the Annual General Meeting of the Company held on 31 May On 1 August 2013, 1,280,774,385 new ordinary shares were allotted at S$0.05 per share pursuant to the Company s rights share exercise. 1(d)(iii) and (iv) Statement showing all sales, transfers, disposals, cancellation and/or use of treasury shares as at the end of the current financial year reported on. Information pursuant to clause 1(d)(iii): Total number of issued shares excluding treasury shares As at 31 Dec 2013 As at 31 Dec ,126,939,685 2,835,643,500 Information pursuant to clause 1(d)(iv): The Company does not have any treasury shares as at end of the immediately preceding financial and during the current financial period. 2. Whether the figures have been audited, or reviewed and in accordance with which auditing standard or practice The figures have not been audited or reviewed by the Company s auditors. 3. Where the figures have been audited or reviewed, the auditor s report (including any qualifications or emphasis of a matter) Not applicable. 4. Whether the same accounting policies and methods of computation as in the issuer s most recently audited annual financial statements have been applied The Group has applied the same accounting policies and methods of computation in the financial statements for the current financial year compared with those of the audited financial statements as at 31 December 2012 except for the changes mentioned in Section 5. 12

14 5. If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reason for, and the effect of, the change In the current financial year, the Group and the Company have adopted all new and revised FRSs and Interpretations of FRS ( INT FRS ) that are relevant to its operations and effective for annual periods beginning on or after 1 January The adoption of these new/revised FRSs and INT FRSs does not result in changes to the Group s and the Company s accounting policies and have no material effect on the financial statements. 6. Earnings per ordinary share of the group for the current period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends The Group FY 2013 FY /( ) % Earnings (Loss) per ordinary share of the Group for the financial year based on net profit attributable to shareholders: (i) Based on the weighted average number of 0.38 (3.49) n.m. shares (US cents) Weighted average number of shares ( 000) 3,676,185 2,956, (ii) On a fully diluted basis (US cents) 0.38 (3.49) n.m. Adjusted weighted average number of shares ( 000) 3,676,185 2,956, Net asset value (for the issuer and group) per ordinary share based on issued share capital of the issuer at the end of the (a) current period reported on and (b) immediately preceding financial year. Net asset value per ordinary share based on issued share capital at the end of the financial year (US cents) As at 31 Dec 2013 The Group As at 31 Dec /( ) % As at 31 Dec 2013 The Company As at 31 Dec /( ) % (6.2) (23.9) 13

15 8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group s business. It must include a discussion of the following: (a) any significant factors that affected the turnover, costs, and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors; and (b) any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current period reported on Review of Group Performance 1. FY 2013 versus FY 2012 FY 2013 Ship building, ship repair and conversion Chartering Leasing Geophysical Subsea services Elimination (Note 1) Group US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 External revenue 222, , , ,995 Inter segment revenue 2,154 (2,154) Total revenue 224, , ,323 (2,154) 511,995 Cost of sales (213,148) (234,232) (1,933) (18,362) 2,154 (465,521) Gross profit (loss) 11,841 31, (1,858) 4,961 46,474 FY 2012 External revenue 55, ,438 8,886 23,087 19, ,400 Inter segment revenue 25,600 (25,600) Total revenue 80, ,438 8,886 23,087 19,619 (25,600) 374,400 Cost of sales (81,216) (252,070) (324) (43,482) (14,460) 25,600 (365,952) Gross profit (loss) (246) 15,368 8,562 (20,395) 5,159 8,448 Variance External revenue 167,465 (1,884) (8,678) (23,012) 3, ,595 Inter segment revenue (23,446) 23,446 Total revenue 144,019 (1,884) (8,678) (23,012) 3,704 23, ,595 Cost of sales (131,932) 17, ,549 (3,902) (23,446) (99,569) Gross profit (loss) 12,087 15,954 (8,354) 18,537 (198) 38,026 Note 1 Inter segment revenue are eliminated upon consolidation. 14

16 Note on deconsolidation of a subsidiary In May 2013, the court ordered a winding up order to be made against Reflect. As a result, Reflect was deconsolidated when liquidators were appointed due to the loss of control of Reflect by the Group. This resulted in the Group recording a gain on deconsolidation of Reflect (US$64.0 million) against the doubtful debt provision for debts due by Reflect (US$45.3 million). Revenue External revenue increased by US$137.6 million primarily contributed by the shipbuilding, ship repairs and conversion and subsea services segments. The increase was partially offset by the chartering, leasing and geophysical segments. Shipbuilding, ship repairs and conversion The external revenue for the segment increased US$167.5 million primarily due to the sale and delivery of vessels and increased ship repairs and fabrication work. Chartering The decrease in revenue (US$1.9 million) was primarily contributed by sale of vessels to third parties and associates during the year. Leasing The decrease in revenue (US$8.7 million) was attributable to the reduction in fleet size for the leasing segment due to monetization of finance lease receivables in Q and option exercised for one vessel in Q by a customer. Subsea services The increase in revenue (US$3.7 million) was primarily due to higher charter rate. Gross profit (loss) The improvement in gross profit amounting to US$38.0 million was primarily contributed by the shipbuilding, ship repairs and conversion and chartering segments and lower gross loss in the geophysical segment. The increase was partially offset by the decrease in gross profit in the leasing and subsea segments. The improvement in gross profit in the shipbuilding, ship repairs and conversion segment was due to the increase in revenue while the increase in gross profit in the chartering segment was primarily due to lower costs. The decrease in gross profit in the leasing segment was due to the reduction in fleet size as a result of monetization of finance lease receivables in Q and option exercised for one vessel in Q by a customer. Other income Other than the gain on deconsolidation of a subsidiary of US$64.0 million in FY2013, other income increased by US$5.9 million primarily as a result of increase in net foreign exchange gain (US$8.9 million), gain on disposal of investment in joint venture (US$0.2 million) and gain on scrap sales (US$0.5 million). The increase was partially negated by a decrease in rental income (US$0.2 million), reduced gain on disposal of property, plant and equipment (US$2.8 million), reduced gain from the changes in the fair value of interest rate swap (US$0.3 million) and other income (US$0.4 million). 15

17 Other expenses Other expenses decreased by US$27.5 million as a result of reduced net foreign exchange loss (US$4.5 million), absence of impairment loss of property, plant and equipment (US$17.8 million), decreased loss on disposal of investment in a subsidiary (US$0.2 million), decreased impairment loss on an available for sale investment (US$3.4 million), impairment loss on goodwill (US$3.4 million) and other expenses (US$0.2 million). The decrease was partially negated by an increase in reversal of unrealised profit for sale of vessels to associates (US$0.4 million) and loss arising from the changes in the fair value of foreign exchange forward contracts (US$1.6 million). Selling and administrative expenses Excluding the allowance for doubtful debts of US$45.3 million as a result of the deconsolidation of a subsidiary in FY2013, selling and administrative expenses decreased by US$40.7 million primarily due to a decrease in allowance for doubtful debts (US$36.4 million), professional fees (US$1.8 million) and sales commission (US$3.3 million). The decrease was partially offset by increase in bank charges and salaries and wages. Finance cost Finance costs increased by US$1.9 million primarily due to increased interest incurred on additional loan facilities drawn down on the fleet with larger vessels. Share of loss of associates and joint venture Share of loss of associates and joint venture increased by US$1.9 million primarily due to the loss incurred by one of its associates. Review of Balance Sheet &/or Cash Flow The material contributing factors to the increase in total assets of US$1,177.8 million as at 31 December 2012 to US$1,281.7 million as at 31 December 2013 was due to the increase in fixed deposits, trade receivables, the net increase in vessels under construction for customer and property, plant and equipment. The increase was partially offset by the decrease in cash and bank balances, loan receivables, inventories, derivative financial instruments and investments in associates and joint venture. The material contributing factors to the increase in total liabilities of US$955.0 million as at 31 December 2012 to US$977.7 million as at 31 December 2013 was due to the increase in other payables and deferred gain. The increase was partially offset by the reduced debt and trade payables. 16

18 9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results. NA 10. A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months. The Group has repositioned itself as an offshore services company. On the chartering front, the Group will continue to grow its chartering fleet and focus on maximizing utilization rates and optimizing efficiency in both the OSV and the subsea sectors. The Group is well positioned geographically in the major oil and gas markets of the world with a focus on deep water sector where we see a growing demand for our services. Global economic conditions as well as the general environment of the shipbuilding industry remain challenging. As the Group is completing the construction of its more complex and high spec vessels, it is increasing its order intake of repair and fabrication projects as well as select newbuild orders for the Indonesian cabotage markets to better utilize its yards to better utilize its yard s capacity. The Group is currently preparing the delivery of the drilling vessel to its customer. 11. Dividend (a) Current Financial Period Reported On Any dividend recommended for the current financial period reported on? Yes. The Directors are pleased to recommend a final one tier tax exempt cash dividend of 0.1 Singapore cents per ordinary share in respect of the financial year ended 31 December 2013 for approval by shareholders at the next Annual General Meeting to be convened. (b) Corresponding Period of the Immediately Preceding Financial Year (c) Any dividend recommend for the corresponding period of the immediately preceding financial year reported on? No (d) Date payable Details on payment of dividend will be announced in due course. (e) Books closure date Details on the closure of books will be announced in due course. 12. If no dividend has been declared/(recommended), a statement to that effect Not applicable. 17

19 PART II ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT 13. Segmented revenue and results for business or geographical segments (of the group) in the form presented in the issuer s most recently audited annual financial statements, with comparative information for the immediately preceding year. (a) By business segment: FY 2013 Shipbuilding, Ship Repair and Conversion Chartering Leasing Geophysical Subsea Services Elimination Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Total revenue 224, , ,323 (2,154) 511,995 Inter segment revenue (2,154) 2,154 External revenue 222, , , ,995 External cost of sales (210,994) (234,232) (1,933) (18,362) (465,521) Segment results 11,841 31, (1,858) 4,961 46,474 Other income 64,015 92,670 Other expenses (4,967) Share of loss of associates and joint venture (4,122) (4,122) Finance costs (24,237) Selling and administrative costs (45,318) (45,318) Unallocated expenses (45,085) Profit before income tax 15,415 Income tax benefit 492 Profit for the year 15,907 (b) By business segment: FY 2012 Shipbuilding, Ship Repair and Conversion Chartering Leasing Geophysical Subsea Services Elimination Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Total revenue 80, ,438 8,886 23,087 19,619 (25,600) 374,400 Inter segment revenue (25,600) 25,600 External revenue 55, ,438 8,886 23,087 19, ,400 External cost of sales (81,216) (226,470) (324) (43,482) (14,460) (365,952) Segment results (25,846) 40,968 8,562 (20,395) 5,159 8,448 Other income 22,774 Other expenses (32,425) Share of loss of associates and joint venture (2,246) (2,246) Finance costs (22,292) Unallocated expenses (85,759) Loss before income tax (111,500) Income tax expense (2,200) Loss for the year (113,700) 18

20 (c) By geographical area In presenting information on the basis of geographical segments, segment revenue is based on the geographical location of customers. FY 2013 FY 2012 US$'000 US$'000 Revenue Asia Pacific 399, ,011 America 29,758 32,997 Europe 35,697 98,584 Africa 28,638 20,119 Middle East 18,573 32, , , In the review of performance, the factors leading to any material changes in contributions to turnover and earnings by the business or geographical segments Please refer to paragraph A breakdown of sales FY 2013 FY /( ) US$'000 US$'000 % (a) Sales reported for first half year 267, , (b) Operating profit (loss) after tax before deducting non controlling interests reported for first half year 20,807 (41,932) n.m. (c) Sales reported for second half year 244, , (d) Operating loss after tax before deducting minority interests reported for second half year (4,900) (71,768) (93.2) 16. A breakdown of the total annual dividend (in dollar value) for the issuer s latest full year and its previous full year Not applicable. 19

21 17. Interested Person Transactions There is no interested person transaction that falls under a general mandate by shareholders. The Group has not obtained a general mandate by shareholders for interested person transactions. Aggregate value of all transactions excluding transactions conducted under shareholders mandate pursuant to Rule 920 (excluding transactions less than $100,000) FY 2013 US$ 000 Rent expense to Samling Singapore Pte Ltd 617 Interest expense to Brizill International Limited 1,340 Advance from the controlling shareholder to a subsidiary as at 31 December 2013* 4,800 * The advance from the controlling shareholder to a subsidiary as at 31 December 2013 is noninterest bearing and has no fixed terms of repayment. 18. Person occupying a managerial position in the issuer or any of its principal subsidiaries who is a relative of a director or chief executive officer or substantial shareholder of the issuer pursuant to Rule 704 (13). Pursuant to Rule 704 (13) of the Listing Manual, we confirm that there is no person occupying managerial position in the Company or its principal subsidiaries who is a relative of a director, chief executive officer or substantial shareholder of the Company. BY ORDER OF THE BOARD SEE KIAN HENG GROUP EXECUTIVE DIRECTOR 21 February 2014 This release may contain forward looking statements that involve risks and uncertainties. Actual future performance, outcomes, and results may differ materially from those expressed in forward looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, exchange rate movement, cost of capital and capital availability, competition from other shipbuilding and chartering companies, shifts in customer demands, customers and partners, changes in operating expenses, including employee wages, benefits and training, governmental and public policy changes. You are cautioned not to place undue reliance on these forward looking statements, which are based on current view of management on future events. 20