1 March 2018

SpareBank 1 Markets - Oil and Energy Conference

Disclaimer

All statements in this presentation other than statements of historical fact are

forward-looking statements, which are subject to a number of risks, uncertainties,

and assumptions that are difficult to predict and are based upon assumptions as

to future events that may not prove accurate. Certain such forward-looking

statements can be identified by the use of forward-looking terminology such as

“believe”, “may”, “will”, “should”, “would be”, “expect” or “anticipate” or similar

expressions, or the negative thereof, or other variations thereof, or comparable

terminology, or by discussions of strategy, plans or intentions. Should one or

more of these risks or uncertainties materialise, or should underlying

assumptions prove incorrect, actual results may vary materially from those

described in this presentation as anticipated, believed or expected. Prosafe does

not intend, and does not assume any obligation to update any industry

information or forward-looking statements set forth in this presentation to reflect

subsequent events or circumstances.

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Brazil

Mexico

Norway

Stacked vessels

Headquarters

Offices

Cyprus

Singapore

This is Prosafe

UK

Tunesia

Newbuild vessels

China

The world’s most diversified fleet of 8

semi-submersible accommodation-,

service- and safety vessels and 1 TSV

Control of 3 newbuild vessels in China

Headquartered in Cyprus, offices in

Brazil, Mexico, UK, Norway and

Singapore

Roughly 550 employees

Current operations

Restructured: “A billion dollar runway” secured through 2020

Improved cash flow 2017-2020 of more

than USD 1 billion from

• Reduction of debt/new build investment USD

530 million

• USD 290 mill bonds converted

• USD 105 mill in equity proceeds

• USD 135 mill in reduced Eurus commitment

• Reduction of amortisation of USD 470 million

• Interest saving from swap restructuring of

approx. USD 23 mill

4

Adapting to “a new reality” - significant reduction in costs

5

Prosafe has operated with a resilient focus

on reducing costs across the organisation

since the downturn started

• Reduced onshore operating costs by

~45%

• Reduced onshore headcount by ~ 50%

• Reduced vessel operating costs by

20%-40%

• Reduced stacking costs by 30%-50%

Operating as efficiently and as lean as

possible, while maintaining market leading

safety and operating metrics

Reducing The Fixed Cost Base

4022

60

13

100

35

0

25

50

75

100

125

2011-2015 AnnualAverage

Current Run Rate

($ i

n m

illi

on

s)

Onshore Costs

Fleet capex

Fixed Cost Reduction: 65%

However, order backlog per YE 2017 reflecting downturn

6

0

500

1 000

1 500

2 000

2 500

Q1

09

Q2

09

Q3

09

Q4

09

Q1

10

Q2

10

Q3

10

Q4

10

Q1

11

Q2

11

Q3

11

Q4

11

Q1

12

Q2

12

Q3

12

Q4

12

Q1

13

Q2

13

Q3

13

Q4

13

Q1

14

Q2

14

Q3

14

Q4

14

Q1

15

Q2

15

Q3

15

Q4

15

Q1

16

Q2

16

Q3

16

Q4

16

Q1

17

Q2

17

Q3

17

Q4

17

US

D m

illi

on

Firm contracts

Firm contracts

69 %

22 %

8 %

2018

2019

2020

0

500

1 000

1 500

2 000

2 500

Q1

09

Q2

09

Q3

09

Q4

09

Q1

10

Q2

10

Q3

10

Q4

10

Q1

11

Q2

11

Q3

11

Q4

11

Q1

12

Q2

12

Q3

12

Q4

12

Q1

13

Q2

13

Q3

13

Q4

13

Q1

14

Q2

14

Q3

14

Q4

14

Q1

15

Q2

15

Q3

15

Q4

15

Q1

16

Q2

16

Q3

16

Q4

16

Q1

17

Q2

17

Q3

17

Q4

17

US

D m

illi

on

Firm contracts

Firm contracts

Positive macro indicators: Oil price & break-even

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S&P 500133%

S&P Energy94%

OSX Index75%

Brent Crude120%

0%

20%

40%

60%

80%

100%

120%

140%

Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18

S&P 500 S&P Energy OSX Index Brent Crude

2%

10%12%

21%

36%

46%

55%

76%

85%

91%95%

98% 99%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

5

10

15

20

25

30

35

cum

ula

tive

% o

f to

tal P

50

reso

urc

es

5e

sou

rce

s P

50

(bil

lion

bb

ls)

Resources Cumulative %

95% of P50 resources breakeven at or below

$70/bbl

Sources: Oil Services Quarterly, January 2018, Clarksons Platou

0 50 100 150 200 250 300

2010

2011

2012

2013

2014

2015

2016

2017

2018

USDbn

Total / other Capex Zuluf (expansion) Johan Sverdrup-Phase 2 (16/2-6 )

Gorgon/Jansz Stage 2 Johan Castberg (7220/8-1) Atum

Libra Pilot Golfinho-Domestic Buzios (x-Franco) V

Golfinho Rakushechnoye (Caspian Sea Bed)

5.4 5.26.0 6.2

7.46.6 6.4

8.8 9.29.7

6.76.2

11.712.7

14.0

10.2 10.2

9.0

6.6

3.73.2

61%58%

66%67%

79%

70%68%

90%94%

97%

66%61%

116%

125%

143%

106%107%

92%

66%

36%32%

0%

20%

40%

60%

80%

100%

120%

140%

160%

-

2

4

6

8

10

12

14

16

san

ctio

ne

d b

arre

ls/p

rod

uct

ion

san

ctio

ne

d b

arre

ls (

bill

ion

s)

Sanctioned barrels (trailing 3yr avg) Sanctioning replacement ratio

The industry has only been replacing ~1/3rd of offshore production

From MMO to HUC to…gradual recovery from 2019?

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North Sea Activity Profile (months)

North Sea Activity Profile (Distribution by Duration)

P90 and P50 are prospects probability of moving to a tender.

Source: Prosafe

Tendering Activity – Three Year Outlook

Strategic focus

Commercial positioning

Cash preservation (cost and spend)

Fleet renewal

Consolidation & BD

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