Investor Presentation Initial Public Offering. 10 June 2013

Transcription

1 Investor Presentation Initial Public Offering 10 June 2013

2 Disclaimer IMPORTANT NOTICES ABOUT THIS PRESENTATION NOT FOR DISTRIBUTION IN THE UNITED STATES, CANADA, JAPAN OR AUSTRALIA. This presentation has been produced by Ocean Yield ASA (the "Company"), solely for information purposes. No shares or other securities are being offered pursuant to this presentation. This presentation does not constitute an offer to sell or a solicitation of an offer to buy any shares or other securities in any jurisdiction, and the information in this presentation shall not form part of any offer or sale of any share or other securities in the Company. Any offering or sale of shares in the Company in connection with the Company's initial public offering will be made on the basis of the official investor documentation designated for such purpose, only. This presentation does not form part of such official investor documentation, and the information included herein is qualified in its entirety by the more complete information included in the official investor documentation which contains, among other things the financial statements of the Company and a discussion about the risks associated with investing in the Company. In Norway, any offer or sale of shares by the Company will be made by means of a prospectus approved by the Norwegian Financial Supervisory Authority, only. In any EEA Member State, this communication is only addressed to and is only directed at qualified investors in that Member State within the meaning of the Prospectus Directive. Any offer or sale of shares in the Company will be made on the basis of an exemption from the obligation to publish a prospectus. In respect of the UK, this document is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as "relevant persons"). The securities to which these materials relate have not been registered under the US Securities Act of 1933 (the "Securities Act"), and may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. This presentation is not for distribution in the United States, except in certain circumstances to Qualified Institutional Buyers ("QIBs"), as defined in rule 144A under the Securities Act. No public solicitations relating to a transaction in respect of the Company are being made or will be made, directly or indirectly, in the United States. The distribution of this presentation may also in other jurisdictions be restricted by law. Accordingly, this presentation may not be distributed in any jurisdiction except under circumstances that will result in compliance with applicable laws and regulations. The Company requires persons in possession of this presentation to inform themselves about, and to observe, any such restrictions. This presentation is strictly confidential and may not be reproduced or redistributed, in whole or in part, to any other person. The contents of this presentation are not to be construed as financial, legal, business, investment, tax or other professional advice. Each recipient should consult with its own professional advisors for any such matter and advice. This presentation includes forward-looking statements that reflect the Company's current views with respect to future events and financial and operational performance; including, but not limited to, statements relating to the Company's business and the implementation of strategic initiatives as well as other statements relating to the Company's future business development and economic performance. These forward-looking statements can be identified by the use of forward-looking terminology; including the terms "assumes", "projects", "forecasts", "estimates", "expects", "anticipates", "believes", "plans", "intends", "may", "might", "will", "would", "can", "could", "should" or, in each case, their negative, or other variations or comparable terminology. These forwardlooking statements are not historic facts. They appear in a number of places throughout this presentation and include statements regarding the Company's intentions, beliefs or current expectations concerning, among other things, goals, objectives, financial condition and results of operations, liquidity, outlook and prospects, growth, strategies, capital resources and capital expenditure and dividend targets, and the industry trends and developments in the markets in which the Company operates. Recipients of this presentation are cautioned that forward-looking statements are not guarantees of future performance and that the Company's actual financial position, operating results and liquidity, and the development of the industry in which the Company operates may differ materially from those contained in or suggested by the forward-looking statements contained in this presentation. The Company cannot guarantee that the intentions, beliefs or current expectations upon which its forward-looking statements are based will occur. This presentation speaks as of 10 June Neither the delivery of this presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. The Company does intend to, and will not assume any obligation to, update this presentation or any of the information included herein. June 13 Company presentation 2

3 Summary of risk factors Risks relating to the Business The Company depends on the performance of the charterers of its vessels for its operating cash flows The Company is exposed to operating, technical and certain other risks relating to the FPSO Dhirubhai-1 The Company may not be able to charter out its vessels at favourable terms following expiry or termination of the existing charter contracts Certain of the Company's vessels are subject to purchase options held by the charterer of the vessel, which, if exercised, could reduce the size of the Company's fleet and its future revenues The market value of the Company's vessels may decrease, which could limit the amount of funds which the Company can borrow, trigger financial covenants under the Company's borrowing arrangements, and lead to losses in the event of a vessel sale following a decline in market value The Company will need to refinance some or all of its financial indebtedness in the future, which it may not be able to do on favourable terms or at all A significant portion of the Company's borrowing arrangements have floating interest rates, and as a result interest rate fluctuations could negatively affect the financial performance of the Company Fluctuation in exchange rates could result in financial loss for the Company Certain of the Issuer's subsidiaries operate within the favourable Norwegian tonnage tax regime, which may be changed in the future The Company will from time to time be subject to commercial disagreements, contractual disputes and litigation with its counterparties and others which may not be resolved in its favour The Company has a large investment in unsecured bonds issued by American Shipping Company, whose principal customer, Overseas Shipholding Group, recently filed for bankruptcy protection under Chapter 11 of the US Bankruptcy Code Certain of the Company's charter contracts, borrowing agreements and other instruments are subject to change of control provisions Risks relating to the Industry As a substantial portion of the Company's fleet consists of oil-service vessels, the Company is exposed to the offshore oil and gas industry, which is significantly affected by, among other things, volatile oil and gas prices As a substantial portion of the Company's fleet will consist of transportation vessels, the Company is exposed to the seaborne transportation industry, which is cyclical and volatile Uncertainty relating to the development of the world economy may reduce the demand for the Company' vessels, result in non-performance of contracts by its counterparties, limit the Company's ability to obtain additional capital to finance new investments, or have other unforeseen negative effects Governmental laws and regulations, including environmental laws and safety regulations, may limit the activities of the Company's charterers and affect their ability to make charter-hire payments to the Company, reduce the vessel values and require capital expenditures for upgrades or modifications to the vessels, and expose the Company to liability Development and construction of new sophisticated, high-specification vessels could cause the Company's vessels to become less desirable to charterers The Company's vessels may be damaged or lost due to events such as marine disasters, environmental accidents, war, terrorism, piracy and other events Operating internationally subjects the Company to risks inherent in operating in foreign countries Maritime claimants could arrest one or more of the Company's vessels Risks relating to the Shares The price of the Shares may fluctuate significantly There is no existing market for the Shares, and a trading market that provides adequate liquidity may not develop Future issuances of shares or other securities in the Company may dilute the holdings of shareholders and could materially affect the price of the Shares Investors may not be able to exercise their voting rights for Shares registered in a nominee account Investors in the United States may have difficulty enforcing any judgment obtained in the United States against the Company or its directors or executive officers in Norway The transfer of the Shares is subject to restrictions under the securities laws of the United States and other jurisdictions Shareholders outside of Norway are subject to exchange rate risk Future sales of Shares by the controlling shareholder may depress the price of the Shares The Issuer has a major shareholder with significant voting power and the ability to influence matters requiring shareholder approval For a detailed disclosure of the risk factors, reference is made to the Ocean Yield Prospectus dated 7 June 2013 June 13 Company presentation 3

4 Transaction summary Offering details Issue size of 33,500,000 new shares plus 3,350,000 secondary shares in Greenshoe Total proceeds of NOK 1,005-1,139 million Free float will be % 100,000,000 shares outstanding pre-ipo Offer structure Global institutional offering for NOK 2,000,000 and above Retail offering in Norway for up to NOK 1,999,999 Retail investors receive a discount of NOK 1,500 Indicative price range NOK per share Offer price determined through book-building process Pre-issue market cap: NOK billion Post-issue market cap: NOK billion Allocation criteria Decided by the Company's Board of Directors, considering factors such as timeliness of the application, price leadership, relative order size, perceived investor quality and investment horizon Use of proceeds The Issuer intends to apply the net proceeds from the Offering to finance, in part, oil-service and industrial shipping assets as well as general corporate purposes Joint bookrunners DNB Markets, Pareto Securities and SEB Joint lead managers DNB Markets, Pareto Securities, SEB, Swedbank First Securities, Arctic Securities and Nordea Markets Timetable and key conditions Application period: Start 10 June 2013 at 09:00 CET End Retail offering 21 June 2013 at 12:00 CET End Institutional offering 21 June 2013 at 16:30 CET Book-building period may be closed or extended Pricing and allocation On or about 24 June 2013 Payment and delivery of shares Payment and delivery on or about 27 June 2013, DVP (T+3) Listing and start of trading Listing on Oslo Børs or Oslo Axess on or about 28 June 2013 Documentation Prospectus dated 7 June 2013 Selling restrictions The Offer Shares have not been and will not be registered under the US Securities Act and may not be offered or sold except Within the United States to QIBs as defined in Rule 144A or To certain persons in offshore transactions in reliance on Regulation S, and in accordance with any applicable securities laws of any state or territory of the United States or any other jurisdiction. Nordea Markets will only participate in the Offering outside of the United States For further selling restrictions reference is made to the Prospectus dated 7 June 2013 Conditions Oslo Stock Exchange approving the listing application of the Issuer; and All required corporate resolutions to consummate the Offering having been passed by the Issuer June 13 Company presentation Lock-up Aker ASA with a 6 months lock-up period following the first day of trading 4

5 Ocean Yield Established by Aker ASA in Q with an attractive portfolio of oil service assets with long term charters Ocean Yield has invested about USD 650 million in five vessels during the last 12 months at an IRR of 14-15% p.a. Target of USD 350 million in annual new investments Intends to raise equity to fund further growth and list the company on the Oslo Stock Exchange Will create an attractive yield stock by paying stable and growing dividends Target dividend for 2013 $0.46 per share (payable in April and September 2014) Aker intends to remain a major shareholder post IPO June 13 Company presentation 5

6 Attractive and diversified portfolio of oil service and industrial shipping assets Initial asset base and USD 650 million in recent acquisitions FPSO Dhirubhai 1 Subsea vessel Lewek Connector Subsea construction vessel 2 x car carrier 6500 CEU (newbuilds) Wayfarer Seismic vessel Geco Triton 2 x AHTS (newbuilds) American Shipping Company bonds Bonds in AMSC, book value USDm 148 and nominal value of USDm AMSC owns 10 modern US flag/jones Act product tankers IRR 14-15% p.a. June 13 Company presentation 6

7 USD 1.7 billion in contracted EBITDA with average charter tenor of 7.5 years Unit Counterparty Contract type Firm period ends Dhirubhai-1 Reliance Bareboat / O&M Sep-18 Lewek Connector EMAS/Ezra Holding Bareboat Oct-22 Wayfarer Aker Solutions Bareboat Sep-20 Höegh 4401 Höegh Autoliners Bareboat Apr-26 Höegh 4402 Höegh Autoliners Bareboat Aug-26 FAR Senator Farstad Supply Bareboat Mar-25 FAR Statesman Farstad Supply Bareboat Jun-25 Geco Triton WesternGeco Bareboat Dec-15 Under construction * Per end Q EBITDA as reported, incl. mob. fees. ; tenor weighted by EBITDA Source: Company June 13 Company presentation 7

8 Growth strategy Target ~USD 350 million in annual investments Target assets Modern assets Oil service Industrial shipping Chartering Solid counterparties Bareboat charters 5 15 years tenor, current avg. 7.5 years Financing Bank debt on project basis ~ 70% Equity ~ 30% June 13 Company presentation 8

9 Sale-leaseback an attractive financing source Attractive funding source for growth Up to 5-15 years funding at a fixed interest rate Off balance sheet financing at competitive rate ~8-9 % p.a. WACC Enables growth without dilution for current shareholders Diversification of funding sources Purchase options Positive effect on shareprice Sale & leaseback typically has a positive effect on shareprice due to Increased growth capacity Increased dividend capacity Reduced need for equity issues Risk management No residual risk No interest rate risk or refinancing risk Limited financial covenants No «capital market» risks - forward committed funding June 13 Company presentation 9

10 Management with extensive network and experience within the industry Lars Solbakken Chief Executive Officer (1957) Employment history: CEO Norwegian Car Carriers ASA CEO Ship Finance International Ltd. General Manager of Fortis Bank (Nederland) N.V., Oslo Branch Senior Vice President and Head of Equity Issues and M&A, Christiania Bank Senior Vice President and Deputy Head of Shipping and Offshore in Christiania Bank Finance Manager in Wilh. Wilhelmsen ASA Education M.Sc. from Norwegian School of Economics and Business Administration Eirik Eide Chief Financial Officer (1970) Employment history: CFO Ship Finance International Ltd. Head of Corporate Finance, Orkla Finans AS Head of Shipping Investments, Orkla Finans AS Director, Fortis Bank, Norway Senior Vice President, Den norske Bank, (Oslo and London) Education M.Sc. from Norwegian School of Management Axel M. Busch-Christensen VP Investments (1983) Employment history: McKinsey & Company, Corporate Finance Practice / Oil & Gas Carnegie Investment Bank, M&A / Oil service Education Bachelor from Norwegian School of Economics and Business Administration Proven ability to source and attractive execute sale-leaseback transactions June 13 Company presentation 10

11 Board of Directors with relevant industrial and capital markets experience Board composition post listing Trond Brandsrud Chairman of the Board (1958) CFO Aker ASA Previous CFO in Seadrill and more than 20 years experience from Shell Kjell Inge Røkke Board Member (1958) Largest shareholder in Aker ASA, through TRG Holding Board member in Aker ASA, Aker BioMarine ASA, Kværner ASA and Aker Solutions ASA Jens Ismar Board member (1957) CEO Western Bulk Director of Chartering- and Project, Bergesen dy ASA/BW Gas Managing Director, Lorentzen & Stemoco AS Anne-Christin Døvigen Board member (1965) Joint Head of Business Development, Tufton Oceanic (Middle East) Managing Director, Co-Head of Shipping Team, Jefferies Director, Co-Head of Shipping Team, HSBC Vice President, Global Shipping Group, JPMorgan Annicken Gann Kildahl Board member (1968) CFO Grieg Star / Grieg International Assistant General Manager, Sparebanken Nor Project and Financial analyst, Torvald Klaveness Group *Current board consists of Trond Brandsrud, Kjell Inge Røkke and Katrine Mourud Klaveness. Jens Ismar, Anne-Christin Døvigen and Annicken Gann Kildahl will be members of the Board with effect as of, and subject to, a listing of the shares on Oslo Stock Exchange June 13 Company presentation 11

12 Strong and committed owner in Aker ASA Aker is an Industrial Holding Company established in 1841 Controls 4 listed companies on Oslo Stock Exchange Aker Solutions and Kværner are controlled through a joint venture company owned 70% by Aker and 30% by the Norwegian Government Dividends from Ocean Yield important to secure steady cash flow and facilitate and support dividend payments in Aker ASA Aker ASA will receive USD 40 million in dividend for 2012 and USD 46 million for 2013 based on target dividend Industrial Holdings Aker Solutions 40%* Det norske 50% Ocean Yield 100% Aker Biomarine 100% Kvaerner 41%* Havfisk 73% Net asset value of NOK 23.2 billion per end Q * Joint Venture shareholding in Aker Solutions and Kvaerner. Aker owns 70% of Joint Venture, thus net ownership is ~28% June 13 Company presentation 12

13 Key financials Income statement USD M Q Q Pro-forma 2012 Operating revenue Vessel operating expenses (3.9) (4.1) (16.3) Wages and other personnel expenses (1.7) (2.9) (10.1) Other operating expenses (2.2) (4.5) (10.2) EBITDA Depreciation & amortisation (24.2) (24.1) (85.9) Impairment charges and non recurring items (5.9) Operating profit Financial income Financial expenses (8.1) (8.7) (24.7) Mark to market of derivatives (3.4) 0.5 (1.7) Profit before tax Income tax expense (0.7) Profit for the period June 13 Company presentation 13

14 Ocean Yield - Summary Attractive and growing dividend Substantial contract backlog provides stability and visibility in future earnings and dividend capacity Significant deal flow underpins strong growth Attractive risk reward for sale & leaseback transactions Management with extensive experience in sourcing and executing sale & leaseback transactions June 13 Company presentation 14

15 Financials Detailed project info June 13 Company presentation 15

16 Revenue backlog of USD 1.9 billion per end Q USD million Vessel Total ) Dhirubhai-1, total of which is bareboat charter of which is O&M agreement Lewek Connector Aker Wayfarer Höegh Höegh Far Senator Far Statesman Geco Triton Total cash revenue backlog Amortisation of mobilisation fees, Dhirubhai Non-cash rate Aker Wayfarer (1) Total revenue backlog (1) This portion of the revenue is used to repay a loan from the client (2) 2013 figures include Q2-Q Source: Company USD/NOK 5.8. Includes company assumptions on uptime for Dhirubhai-1 June 13 Company presentation 16

17 Overview of company capitalisation Capitalisation per end Q Incl. new investments Breakdown per asset musd 1,800 1,600 1,400 1, , , , Book equity Interestbearing loans Cash Total capitalisation Remaining Incl new AMSC Wayfarer Dhirubhai-1 Höegh Connector Farstad Geco Triton Other investments 1) investments bonds 2) vessels vessels 3) Consolidated book Equity of approximately USD 547 million and equity ratio of 35.5% at end of Q Realistic and conservative book values in all asset owning subsidiaries 1) Includes investment in Höegh Vessels of USD 98.4m and Farstad Statesman of USD 105.3m 2) Including intangibles of USD 38.3m 3) Includes deferred tax asset of USD 9.2m, restricted cash of USD 20m, receivables of USD 18.9m, deferred tax liability of USD 0.6m, pension liabilities of USD 0.3m and trade payables of USD 16.8m June 13 Company presentation 17

18 Profit & Loss Income statement USD M Q Q Pro-forma 2012 Operating revenue Vessel operating expenses (3.9) (4.1) (16.3) Wages and other personnel expenses (1.7) (2.9) (10.1) Other operating expenses (2.2) (4.5) (10.2) EBITDA Depreciation & amortisation (24.2) (24.1) (85.9) Impairment charges and non recurring items (5.9) Operating profit Financial income Financial expenses (8.1) (8.7) (24.7) Mark to market of derivatives (3.4) 0.5 (1.7) Profit before tax Income tax expense (0.7) Profit for the period June 13 Company presentation 18

19 Balance sheet Q Assets USD M USD M Equity and Liabilities Current Assets: Current Liabilities: Cash & Cash Equivalents Trade and other payables Current assets Current portion of Long Term Debt Total Current Assets Total Current Liabilities Fixed Assets: Vessels & PPE 1,241,0 Long Term Liabilities: Deferred tax assets Long term debt Other assets Non-int. bearing debt (incl. mob fees) AMSC bonds Pension & tax liabilities Restricted cash 20.0 Total Fixed Assets 1, Total Long Term Liabilities Shareholders Equity Total Assets 1, ,539.2 Total Equity and Liabilities June 13 Company presentation 19

20 Q debt overview attractive long term financing in place Original Facility amount Outstanding amount per Q1* Profile Interest rate Other Dhirubhai 1 USDm 583 USDm year LIBOR+1.5% p.a. Cash sweep 50% of free cash Lewek Connector USDm 235 USDm year NIBOR + ~3.0% p.a. Aker Wayfarer NOKm 1238 USDm year NIBOR+ 1.65% p.a. Refinancing of funding Høegh vessels USDm 46 per vessel 15 year LIBOR % p.a. Far Senator/ Far Statesman NOKm 458 per vessel USDm year Fixed 5.29% p.a. Wrap around NIBOR + 3.5% p.a. Bond NOKm 600 USDm 101 Bullet July 2017 NIBOR + 6.5% p.a. Swapped LIBOR +7.07% p.a. * As reported in Q financial report June 13 Company presentation 20

21 Financials Detailed project info June 13 Company presentation 21

22 Farstad vessels 2 newbuilds Vessel and charter Vessel: Far Senator & Far Statesman Type: Anchor Handling Tug Supply Vessels (AHTS) Built: March/May newbuilds Charter: Bareboat charter Yard: STX Charterer: Farstad Supply AS (main vessel owning subsidiary of Farstad Shipping ASA listed on OSE) Charter end: March/June 2025 Options: Year 5 (NOK 498m), Year 7 (NOK 446m), Year 10 (NOK 368m), Year 12 (NOK 313m) Financing Lenders: Eksportkreditt Norge / Swedbank & Sparebanken Møre Facility: NOK 916 million Maturity: 2018/2025 Repayment: 15 year profile to zero June 13 Company presentation 22

23 Höegh vessels 2 newbuilds Vessel and charter Vessel: Hull 4401 & 4402 Type: Car carrier vessels (PCTC), 6500 ceu Built: April/August newbuilds Charter: Bareboat charter Yard: DSME - Romania Charterer: Höegh Autoliners Shipping AS Guarantor: Höegh Autoliners Holding AS Charter end: April/August 2026 Options: Year 5 ($54m), Year 7 ($50m), Year 10 ($43m), Year 12 ($37m) Financing Lenders: SEB Facility: USD 92 million Maturity: 2019 Repayment: 15 year profile to zero June 13 Company presentation 23

24 Lewek Connector Vessel and charter Vessel: Lewek Connector Type: Multi purpose cable lay vessel Built: 2011 Charter: Bareboat charter Yard: STX Europe, Søviknes (Norway) Charterer: EMAS-AMC AS Guarantor: Ezra Holdings Limited (listed on Singapore Exchange) Charter end: October 2022 Options: Year 5 ($245m), Year 7 ($213m), Year 10 ($158m) Financing Lenders: Eksportkreditt/DNB Liv Facility: USD 235 million Guarantors: DNB (36%) & GIEK (64%) Maturity: 2017 (DNB) and 2024 (GIEK) Repayment: 12 year profile to zero June 13 Company presentation 24

25 Aker Wayfarer Vessel and charter Vessel: Aker Wayfarer Type: Subsea construction & installation vessel Built: 2010 Charter: Bareboat charter Yard: STX Europe, Søviknes (Norway) Charterer: AKOFS Wayfarer Guarantor: Aker Solutions ASA (rated BB+) Charter end: September 2020 Options: No options Financing Lenders: Eksportfinans Guarantors: DnB (20%) & GIEK (80%) Maturity: 2015 (DnB) / 2022 (GIEK) Repayment: 12 year profile to zero June 13 Company presentation 25

26 Dhirubhai 1 - FPSO Vessel and charter Vessel: Dhirubhai-1 FPSO Type: FPSO Built: Converted in 2008 Charter: Bareboat charter & operating agreement Field: MA-D6 (India) Charterer: Reliance Industries Limited (BP is field partner(30 %)) Charter end: September 2018 Options: Sep 2013 ($541m), Sep 2014 ($494m), Sep 2015 ($443m), Sep 2016 ($387m), Sep 2017 ($324m), Sep 2018 ($255m) Financing Lenders: Maturity: Repayment: Bank syndicate with DNB as agent, 11 banks. Non-recourse facility 2018 (expected to be repaid in Q2 17 due to cash sweep mechanism) USD million per year plus cash sweep (50% of excess cash) June 13 Company presentation 26

27 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Dec-12 Dhirubhai 1 - FPSO The MA oil and gas field, one of several fields in the KG-D6 block, is located about 60 kilometres offshore east coast of India, south-east of Kakinada. The MA field is also referred to as the D26 field 100% 90% 80% 70% 60% Production uptime Dhirubhai-1, in % per month Reliance Industries is the operator of the KG-D6 block. Reliance Industries and its partner Niko Resources of Canada were awarded the KG-D6 block in In 2011, British Petroleum entered into a partnership with Reliance Industries taking a 30% ownership in multiple oil and gas blocks in India, including the KG-D6 block, which means that the rights to the KG-D6 block as at 31 March 2013 are shared between Reliance Industries (60%), British Petroleum (30%) and Niko Resources of Canada (10%) The MA field started crude oil production on 21st September 2008 after deployment of the Dhirubhai-1 According to news reports Reliance Industries is planning to increase production from the MA field by working-over one existing well, drilling one new gas well and a facility upgrade. In 2012 the estimated reserves in the MA field were increased. In addition to the MA field, the KG-D6 block comprises two other fields that have been developed and are currently producing, these are the gas fields D1 and D3. Gas production at the D1 and D3 fields has turned out to be challenging which has resulted in a decrease in production. These fields are however not linked to the MA field. 50% In February 2013 BP and Reliance announced a KG D6 block enhancement plan with a joint potential investment in excess of USD 5 billion over the next three to five years to develop around 4 trillion cubic feet of discovered natural gas On 28 th May 2013 Reliance and partners discovered a significant gas and condensate discovery in the KG D6 block, lying below the already producing reservoirs D1-D3 gas fields. The drill stem test indicated good flow potential. Formation evaluation indicated a gross gas and condensate column in the well of about 155 metres June 13 Company presentation 27

28 Geco Triton Vessel and charter Vessel: Geco Triton Type: Seismic vessel Built: Converted in 1998 Charter: Bareboat charter Yard: Jurong Singapore Charterer: Geco Ship AS Guarantor: WesternGeco AS Charter end: December 2015 Options: No purchase option Financing Lenders: Debt free Facility: - Maturity: - Repayment: - June 13 Company presentation 28

29 American Shipping Company Bonds Bonds Ocean Yield owns 93% of the bonds in AMSC Nominal value per end Q1: ~USD million Book value per end Q1: ~USD 148 million (~80% of par) Interest rate: NIBOR % per annum PIK interest Maturity: February 2018 American Shipping Company Company listed on the Oslo Stock Exchange Owns modern US flag/jones Act product tanker fleet consisting of 10 vessels Vessels are on long-term bareboat contracts to OSG until Dec OSG has sub-chartered vessels to oil companies Current bareboat rates to OSG significantly below current market On 14 November 2012, OSG filed Chapter 11 petitions for itself and certain operating subsidiaries OSG filing for Chapter 11 not expected to negatively impact AMSC Capitalisation AMSC per end Q Total assets of USD 954 million Total interest bearing liabilities of USD 828 million Negative financial liabilities (Interest rate swaps) of USD 62 million Equity 54 million June 13 Company presentation 29

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