Songa Offshore SE

3Q 2016 Presentation

Conference call

11 November 2016

2

IMPORTANT INFORMATION AND DISCLAIMER

This presentation (the “Presentation”) has been produced by Songa Offshore SE

("Songa Offshore" or the "Company") exclusively for information purposes.

This Presentation includes forward-looking statements regarding Songa Offshore,

including projections and expectations, which involve risk and uncertainty. Such

statements are included without any guarantee as to their future realization. Although

Songa Offshore currently believes that the expectations regarding the Company

reflected in such forward-looking statements are based on reasonable assumptions,

no assurance can be given that such projections will be fulfilled. Any such forward-

looking statement must be considered along with the knowledge that actual events or

results may vary materially from such predictions due to, among other things,

political, economic, financial or legal changes in the markets in which Songa Offshore

does business, and competitive developments or risks inherent to the Company’s

business plans. Many of these factors are beyond Songa Offshore’s ability to control

or predict. Given these uncertainties, readers are cautioned not to place undue

reliance on any forward-looking statements. Accordingly, the Company does not

accept any responsibility for the future accuracy of the forward-looking statements

expressed in this Presentation or the actual occurrence of the forecasted

developments. The Company does not intend, and does not assume any obligation,

to update any such forward-looking statements as of any date subsequent to the

date hereof.

No representation or warranty (express or implied) is made as to, and no reliance

should be placed on, any information, including, without limitation, projections,

estimates, targets and opinions, contained herein, and no liability whatsoever is

accepted as to any errors, omissions or misstatements contained herein, and,

accordingly, the Company does not accept any liability whatsoever arising directly or

indirectly from the use of this Presentation.

By receiving this Presentation, the recipient acknowledges that he will be solely

responsible for its own assessment of the market and the market position of the

Company and that he will conduct his own analysis and be solely responsible for

forming his own view of the potential future performance of the businesses of the

Company. This Presentation must be read in conjunction with the recent financial

information, as well as other publicly disclosed information.

Nothing in this Presentation, nor any other information provided to the recipient by

the Company or any of its advisers constitutes, or may be relied upon as constituting,

investment advice or any financial, tax or legal advice by such persons or anybody

else.

Disclaimer

3

Songa Equinox

Songa Endurance

Songa Encourage

Songa Enabler

Songa Dee

Songa Trym

Songa Delta

Cat-D rigs

Legacy rigs

Offices

Headquarter

This is Songa Offshore

Financial Performance and Highlights

• Songa Enabler commenced long term

drilling contract on 29 July

• 95% average fleet earnings efficiency for

the Cat D rigs, negatively impacted by 1%

from strike

• 95% average earnings efficiency for the

Legacy rigs

• Third quarter EBITDA of $146m

• Songa Enabler suspended from end

November to 1 April 2017

4

5460 64

103

71

127

146

0

20

40

60

80

100

120

140

160

Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16

$ m

illio

n

EBITDA Trym Cancellation Fee

5

Fleet and Operations

Operations – Cat D Rigs

6

Songa Equinox• Songa Equinox and Songa Endurance working on

the Statoil operated Troll field

• Songa Equinox preparing for anchored winter

operations during September

• Songa Equinox and Endurance September

Earnings Efficiency negatively impacted by NCS

service strike by 4% and 9% respectively

Songa Endurance

46%

73%

98% 100%92%

100% 98% 100%

80%

45%

71%

97%94%

91%

100% 97% 99%

76%

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16

Operating Efficiency % Earnings Efficiency %

11%

75%

88%

100%93%

89%

100% 100% 96%

11%

73%

88%

100%92%

89%

100% 100%

86%

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16

Operating Efficiency % Earnings Efficiency %

Operations – Cat D Rigs

7

Songa Encourage

Songa Enabler

89%

100% 100% 100% 100% 100%

89%97% 99%

98%99% 99%

Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16

Operating Efficiency % Earnings Efficiency %

• Songa Encourage currently working on the Smørbukk

field

• Songa Enabler commenced drilling operations on 29

July 2016 under the long-term drilling contract with

Statoil on the Snøhvit field in the Barents Sea

• Songa Enabler September Earnings Efficiency

negatively impacted by the NCS service strike by 3%

• Airgap study positively concluded, and all four Cat D

rigs will during November perform minor modifications

while in operation, in order to comply with regulations,

with overall total costs estimated at $1.3 million

92%100%

92%96%

Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16

Operating Efficiency % Earnings Efficiency %

Rig Operating Expenses

NOK denominated portion of Rig Opex around 93%8

143 141137

119

113

107 108

164

142

136

40

60

80

100

120

140

160

180

Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16

Legacy Rigs Cat D Rigs

9

All Cat D Rigs on Long Term Contracts with Statoil

• Statoil have exercised their contractual right to reduce the contract duration on Songa Enabler by 118 days, due to delayed delivery

• All Cat D rigs have 4 x 3 year options

Unit Customer Current Option

Day rate Day rate

Norwegian Continental Shelf

Songa Equinox 495 Firm contract end rate + $15 k

Songa Endurance 495 Firm contract end rate + $15 k

Songa Encourage 453* Firm contract end rate

Songa Enabler 457* Firm contract end rate

Songa Delta 373

Songa Dee Marketed

Songa Trym Marketed

Contract (incl. mob) Yard Option SPS

2022 20232016 2017 2018 2019 2020 2021

*USD/NOK quarter end rate of 8.05

Significant Contract Backlog

$4.6bn in firm backlog + $8.0bn in options

USDm

10

194

688 681 674 669 661 651

382

39

267

612

0

100

200

300

400

500

600

700

4Q2016 2017 2018 2019 2020 2021 2022 2023 2024

Firm Contracts Options

Cat D Arbitration Case with DSME

• In July 2015 Songa Offshore received notices of

arbitration from DSME

• Claims of $373m received from DSME in November 2015

for Songa Equinox and Songa Endurance

• In March 2016 Songa Offshore submitted its response to

DSME’s claim and a $66m counterclaim against DSME

• Songa Offshore is strongly of the view that DSME is

responsible for the delays and any attempt to recover

cost overruns has no merit

• Songa Offshore has continued to prepare its case,

remains confident on its position and will defend it

vigorously

• Arbitration expected to be ongoing throughout 2017

11

12

• Songa Delta contracted to 14 November

2016 – currently being stacked

• Songa Dee and Songa Trym are stacked

and marketed

• Transocean Winner first NCS rig to be

scrapped in this cycle

• 15 NCS stacked rigs - eight rigs are warm-

stacked, while seven rigs are cold-stacked

• Weak floater demand on NCS and poor

visibility through 2017

NCS Floater Market

Unit

Songa Enabler

Songa Encourage

Songa Endurance

Songa Equinox

COSL Promoter

Deepsea Atlantic

Deepsea Stavanger

Deepsea Bergen

Scarabeo 5

Scarabeo 8

Leiv Eiriksson

Transocean Arctic

Transocean Spitsbergen

Bideford Dolphin

Songa Delta

Stena Don

Songa Dee

Borgland Dolphin

West Alpha

COSL Pioneer

Polar Pioneer

Transocean Searcher

Songa Trym

Island Innovator

West Hercules

Bredford Dolphin

COSL Innovator

West Venture

West Navigator

Contract

Option

SPS

Q1 Q2 Q3 Q4

2016 2017 2018

Q4 Q1 Q2 Q3 Q4

Financial Review

13

1771

4225

9898

98 98

496

24

9696

96

394

317

57

117

31

62

117

17

33

0

100

200

300

400

500

600

700

800

900

4Q2016 2017 2018 2019 2020 2021 2022

Dee, Trym, Delta Cat D 1&2 Cat D 3&4 SONG04*

SONG05* SONG07 Shareholder loan

Debt Maturity Profile

* Based on outstanding nominal NOK amount and USDNOK 8.05 quarter end exchange rate, SONG04 and SONG05 swapped are

swapped to $240m and $125m respectively

14

USDm

Profit and Loss Statement

15

USDm 3Q 2016 2Q 2016 1Q 2016 4Q 2015 3Q 2015

Operating revenue 211 184 123 132 100

Reimbursables 7 6 6 9 14

Other revenue 11 10 9 18 11

Total revenues 229 200 137 159 124

Rig operating expenses 67 60 53 37 38

Reimbursables 7 5 6 8 13

General and Administrative expenses 10 8 8 11 10

Other - - - - -

Total expenses 83 74 67 56 60

EBITDA 146 127 71 103 64

Depreciation (44) (49) (39) (28) (33)

Impairment - (118) - (193) (328)

EBIT 102 (40) 32 (118) (297)

Finance income - - 2 3 1

Finance expense (26) (23) (22) (1) (4)

Other financial items (9) (24) (6) (16) (14)

Net financial items (34) (46) (26) (14) (17)

Profit (loss) before tax 67 (87) 6 (132) (314)

Income tax (charge) credit (2) 1 4 (27) (3)

Profit (loss) for the period 65 (86) 10 (159) (317)

Q3 vs. Q2 EBITDA Bridging

16

127

146 20 6

5 1 0 1 2 9

0

20

40

60

80

100

120

140

160

180

Q2' 2016 Enabler Encourage Endurance Trym Equinox G&A /Other

StrikeEffects

Dee/Delta Q3' 2016

Balance Sheet

17

USDm 3Q 2016 2Q 2016 1Q 2016 4Q 2015 3Q 2015

Rigs, machinery and equipment 3,159 2,473 1,929 1964 652

Newbuilds - 713 1371 869 1,819

Financial assets - 8 8 8 18

Derivative financial instrument - - - 97 96

Deferred tax assets 21 21 21 17 43

Total non-current assets 3,179 3,215 3,330 2,955 2,629

Trade receivables 93 76 79 34 46

Prepayments 9 2 4 6 6

Earned revenue 62 64 20 38 34

Financial assets 32 37 37 37 37

Derivative financial instrument 9 5 8 - -

Other assets 5 6 7 11 13

Cash and cash equivalents 141 135 156 168 200

Total current assets 352 326 312 295 335

Total assets 3,531 3,541 3,642 3,250 2,964

Total shareholder’s equity 816 749 572 573 717

Bank loans and other facilities 1,797 1,861 1,967 1,517 1224

Bond loans 257 244 266 243 255

Convertible bond 37 37 211 116 116

Derivative financial instruments 130 148 142 252 254

Deferred revenue 122 129 93 91 74

Other long term liabilities 8 9 11 14 16

Total non-current liabilities 2,351 2,428 2,690 2,232 1,937

Current portion of bank loans and other facilities 265 264 251 292 156

Trade and other payables 23 19 30 35 41

Tax payable 5 4 4 4 5

Deferred revenue 20 24 27 36 36

Derivative financial instruments - 1 - - 7

Other liabilities 52 53 69 78 65

Total current liabilities 364 365 381 445 309

Total equity and liabilities 3,531 3,541 3,642 3,250 2,964

Key Highlights

• Strong 3Q performance with EBITDA of $146 million with contributions from

both Legacy and Cat D rigs

• Four harsh-environment midwater Cat D rigs delivered in 2015 and 2016 - all

on long-term contracts with Statoil

• Industry leading firm contract backlog of $4.6bn

• No material capital commitments

• Strong focus on Cat D rigs performance and cost efficiency

18

Q&A

Setting the New Standard on the NCS

Q&A