Island Offshore Announces Q3 2013 Financial Report (Norway)

Fleet revenue totals NOK 521 mill in Q2 2013 and NOK 974 mill YTD 2013. Fleet utilization YTD is satisfactory at 88% despite a significant dry docking program carried out in H1 2013. The majority of the fleet is on long-term contracts with satisfactory results. Earnings before interest, tax, depreciation and amortization (EBITDA) totals NOK 216 mill in Q2 2013 and NOK 370 mill YTD 2013.

Overall the EBITDA margin is satisfactory but stronger in Q2 than in Q1.

The spot market for PSVs has continued to be relatively strong in Q2 and into Q3. We expect the demand for medium sized and large PSVs to be strong also in coming months. We expect the AHTS market to be volatile but have secured project work that will make a positive contribution to earnings for this fleet in the second half of 2013. The order backlog is strong and totals approximately NOK 14 billion (7 x 2013 revenue) including charterers’ options.

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Island Offshore, September 10, 2013