seadrill getting fully financed - files.meetup.comfiles.meetup.com/6378162/seadrill slides march...

Seadrill getting fully financed

March 2013

Please refer to important disclosures at the end of this document

Frank Harestad Direct: +47 5183 6315

Email: [email protected]

Andreas Stubsrud Direct: +47 2413 2116


2

SDRL: Q4’12 review

Underlying numbers as expected

EBITDA USD 603m vs 574E cons. 601m Net profit adjusted USD 279m vs 276E

High yard activity in 2013/14

9 rigs in 2013 ‣ 4 UDW ‣ 5 jackups

Market outlook

Very bullish jackups UDW continues

SDLP and NADL

Expect a drop down next months NADL listing May 2013

Conclusion

EPS revisions 2013 -15: 2.5(2.9) – 3.5(3.7) – 4.7(4.9)

New loans secured. More confident financial situation and dividend towards USD 1 per quarter

Actual Actual

Q3'12 Q4'12 Pareto Cons.

Revenues USDm 1,092 1,214 1,082 1,117

EBITDA " 574 603 574 601

EBIT " 375 224 422 439

Pre tax profit " 255 105 340 360

Net profit " 189 15 276 295

EPS adj. USD 0.56 0.59 0.59 0.64

DPS USD 1.70 0.00 0.00 0.00

Net debt USDm 10,599 11,325 11,150 N/A

Floaters USDm 389 413 385

Jackups " 86 90 101

Tender rigs " 99 100 88

Other " - - -

Total EBITDA " 574 603 574

Source: Factset

Q4'12 Estimates

Seadrill – USD 7.8bn projected in additional funding need by YE 15

3

In addition USD 142m in amortization new loans assumed in 2014 and USD 542m in 2015

Q4'12 Q1'13E Q2'13E Q3'13E Q4'13E 2013E 2014E 2015E

Operating CF USDm 241 558 437 464 507 1,965 2,913 3,123

Sale assets " - 73 1,134 - - 1,207 - -

Capex " (223) (963) (192) (1,524) (1,837) (4,514) (2,261) (2,084)

Other invest. " (239) (82) - - - (82)

Debt due " (158) (490) (255) (347) (334) (1,426) (1,872) (2,116)

New debt 717 650 - 1,094 2,150 3,894 3,100 3,000

MLP proceed " 203 - - - - -

Dividend " (708) - (423) (447) (470) (1,340) (1,880) (1,880)

Cash flow " (167) (254) 701 (759) 16 (296) (0) 42

Cash opening USDm 669 502 248 949 190 502 206 206

Cash closing " 502 248 949 190 206 206 206 248

Acc. New debt USDm 717 1,367 1,367 2,461 4,611 4,611 7,711 10,711

Herof secured " 717 1,167 1,167 1,961 2,911 2,911 2,911 2,911

Need - 200 200 500 1,700 1,700 4,800 7,800

Acc. amort. - - - - - - 142 542

Need post amort. - 200 200 500 1,700 1,700 4,942 8,342

Seadrill – Fleet provides high loan capacity

4

USD 1.7 needed by 2013 vs capacity 1.51bn

West Eminence up for new loan ~ USD 450m Petrobras until Jul 15 @616’USD/day

HE Jackup West Linus ~ USD 400m 5Y contract Conoco Phillips

6x premium jackups: USD 660m ‣ 3 Asian Offshore JU’s, 2 Newbuild Jurong, West

Prospero

USD 3.25 bn needed in 2014 capacity USD 3.26bn

4x new Samsung UDW drillships USD 1.8bn 3x UDW rigs with loans up for nenewal 1.35bn ‣ West Sirius BP 7/19 @535’$/day ‣ West Capella Total 4/17 @627’$/day ‣ West Acquarius Exxon Mobil 6/15 @530’$/day

Jackup West Prospero USD 110m

USD 3.4bn needed in 2015 capacity USD 3.16bn

2 new semis USD 900m, ‣ 1 secured 5Y Husky @590’$/day

2 UDW semi USD 900m. Orion and Gemini contracted until July 16 and Sep 17 +600’$/day

11 premium jackups + semi tender USD 1.4bn ‣ 7 Score jackups, 4 Dalian newbuilds, Vencedor

Other sources: MLP dropdown, NADL listing, Sapura Kencana, sale other assets, bond, refinancing Ship Finance loans

Rigs to use as collaterals by 2015:

12 UDW rigs hereof 6 newbuilds

1 HE jackups and 16 premium jackups

1 semi tender

Seadrill – Assets to be used as collaterals for new loans in 2013

5

Ultra harsh environment JU 450 feet built 2013/14

Conoco Phillips until July 15 @615’USD/day

West Eminence West Linus

Semi 10’ feet built 2009 Petrobras Brazil until July 15

@615’USD/day

6x premium JUs

3 newbuild Asia Offshore drilling delivery 2013

2 newbuilds Jurong delivery 2013

West Prospero jackup built 2007

Seadrill – USD 190m needed by YE 13 from sources other than secured

6

In the table above we calculate the need for additional debt in addition to assumed secure debt

The assumed secured debt is in-line or below recent secured debt level for Pacific Drilling, Ocean rig and Prospector (Chinese debt, similar to SDRL secured recently)

Seadrill then needs USD 190m in 2013, and the contemplating bond issue announced today will most likely secure this amount

Unencumbered delivered assets 2013E 2014E 2015E

New UDW rigs # 450 1 8 12

Harsh environment JU's " 400 1 1 1

New JU's " 110 6 7 18

Tender barges (newer) " 75 - - -

Semi tender " 150 - - 1

Acc. loan capacity E USDm 1,510 4,770 7,930

Amortization new loans " - (126) (523)

Additional need " 190 156 393

Loan capacity per rig USDm E

7

SDRL: solid back-log existing rigs, 6 of 9 UDW newbuilds uncontracted

16 existing UDW rigs + 1x 4GSS Norway

1 unit available 2014

4 units available 2015

12 units contracted to 2015 – 2019

9x UDW newbuilds

3 units contracted

1 unit available 2013



Contract status & dayrate assumptions

Floater fleet

West Tellus(2013) Samsung

West Navigator (Drillship 1999)* Shell @590'$

West Neptune (2014) Samsung

West Jupiter (2014) Samsung

West Saturn (2014) Samsung

West Phoenix (Semi built 2008)* Total @ 452'$/day

West Carina (2014) Samsung

West Riegel (Semi built 2015) Jurong

West Taurus (Semi 2009) Petrobras @ 655'$/day

West Eminence (Semi 2009)* Petrobras @ 615'$/day

West Venture (Semi 1999)* Statoil @ 440'$/day

West Orion (Semi 2010) Petrobras @ 615'$/day

West Leo (Semi 2011) Tullow @ 525-625'$/day

West Pegasus (Semi 2011) Pemex @ 465-MtM'$/day

Songa Eclipse (Semi built 2012) Total@ 435-450'$/day Angola

West Hercules (Semi 2008) Statoil Norway 496'$/day

West Capella (Drillship 2008)** Total @ 544-627'$/day

West Acquarius (Semi 2008)** Exxon @ 530'$/day

West Gemini (Drillship 2010) Total/TBN @ 447-640'$/day

West Alpha (4G Semi 1984)* BG/Exxon @480-548'$/day

West Polaris (Drillship 2008) Exxon/TBN @617-642'$/day

West Capricorn (Semi 2011) BP 496'$/day

West Sirius (Semi built 2008)** BP @ 475-540'$

West Mira (Semi built 2015) Hyundai Husky @590'USD/day

West Auriga (2013) Samsung BP @565'USD/day

West Vela(2013) Samsung BP @565'USD/day

* NADL ** MLP Contract Option Yard Available

2013 2014 2015 2016 2017 2018 2019

Seadrill – strong EPS growth projected …despite tender rig sale negative impact 2013

8

17.415.4 14.6 14.7

20.4

27.0

0

5

10

15

20

25

30

2010 2011 2012 2013e 2014e 2015e

EPS NOK/share

Valuation

9

10

From conf calls yesterday (SDRL, RDC, PACD, SEVDR): 1. UDW dayrates flat 2. Jackup dayrates improving (that is why SDRL orders jackus) – see our

new jackup slide (22&23) 3. Shipyard prices flat 4. OPEX increasing for floaters

Our view 1. An OPEX increase of USD 10-20’/day doesn’t impact earnings much

(when EBITDA margin is USD 400’/day), but cost sentiment negative 2. Capex more important, and very bullish, other than repair &

maintenance (i.e. Songa)

Conclusion: 1. Rig companies can order «cheap» rigs due to weak shipping market 2. Based on our oil price view we believe the cycle will extend into second

half of this decade and hence valuation is not demanding

Top picks: 1. Pacific Drilling, Prospector (DISC), Seadrill and Transocean equity 2. Pacific Drilling 1 lien bonds (Sharav)

Market comment & our comments

Transocean Enterprise drillship

A pretty jackup picture

Jackup newco’s discounted to yard prices

Implied values

11

It is impossible to order cheaper than buying at the stock exchange – M&A will happen

SDSD is removed – 1 rig left, USD 400m in cash

208198

188

222

201

166

257

225

186

-

50

100

150

200

250

300

DISC PROS SDSD

USDm/JU

Average Yard price Implicit yard price EV/rig

DISC PROS SDSD

Market Cap USDm 148 239 417

Average Yard price " 208 198 188

Implicit yard price USDm/rig 222 201 166

Current yard quote " 245 205 205

EV/rig " 257 225 186

Value early delivery " 37 31 11

Adjusted. Payment terms " 5 5 5

NAV adjusted " 287 241 221

Current share price NOK 13.0 14.5 9.1

1) NAV at current quote " 16.9 15.4 9.9

2) NAV incl. early delivery " 23.3 23.0 10.2

3) NAV incl. Payment terms " 24.2 24.2 10.3

1) Upside yard prices (YP) % 31 7 9

2) Upside YP + early delivery % 80 58 12

3) Upside YP early del. + pmt % 87 67 13

No of jackups # 2 4 1

Average delivery Date Sep-13 Feb-14 May-14

Delivery for new orders " May-15 Jul-15 Apr-15

UDW implied values including newbuilds

In 2013E implied values all newbuilds are included, hence there are “unproductive” rigs included

2015E implied values are comparable to newbuild orders

Most newbuilds are delivered and the figures above are comparable

Note that average fleet age differentiate significantly: VTG, SDRL, OCR, SEVDR and PDSA with the youngest fleet

2013E implied UDW values 2015E implied UDW values

Source: Pareto Research 12

977

791 756 740 729 728 687 674 674 639 611 583494

0

100

200

300

400

500

600

700

800

900

1,000

SDRL NE VTG FOE NADL ATW ESV PACD DO RDC RIG ORIG SEV

USDm

815

661 650 618 588 581 565 553 549 532 525447 437

0

100

200

300

400

500

600

700

800

900

1,000

SDRL NE VTG NADL FOE ATW PACD DO ESV RIG RDC ORIG SEV

USDm

13

Multiples DRILLERS Share price EV/EBITDA EV/EBITDA EV/EBITDA EV/EBITDA EV/EBITDA

KEY FIGURES NOK/USD Net debt/EV 1) MtM 2) 15E 14E 13E 12E

Asia Offshore 25.10 73% 4.9x 6.8 5.2 6.0 30.0 -

Atwood Oceanics 49.56 37% 1.8x 5.0 4.5 6.2 7.8 10.3

Awilco Drilling 82.00 8% 0.2x 2.7 1.3 2.0 2.9 7.1

Diamond Offshore 68.1 23% 1.2x 5.2 4.7 5.9 7.6 7.0

Discovery Offshore 13.0 70% 4.2x 6.1 5.3 6.9 - -

Ensco 58.3 28% 1.5x 5.4 4.4 5.8 6.7 8.5

Fred Olsen Energy 249.2 28% 1.2x 4.4 4.2 5.0 6.3 5.7

North Atlantic Drilling 56.0 56% 3.6x 6.5 5.4 7.9 8.0 7.7

Noble 34.8 46% 2.4x 5.3 5.2 6.1 8.1 8.5

Northern Offshore 10.5 -12% -0.3x 2.8 1.4 1.7 2.3 5.4

Ocean Rig 78.7 69% 3.2x 4.7 4.0 5.1 9.9 14.3

Pacific Drilling 9.3 63% 3.3x 5.3 5.2 7.9 12.3 12.8

Prospector Offshore 14.5 74% 4.7x 6.4 5.6 7.7 - -

Rowan 34.5 42% 2.2x 5.1 4.6 6.4 9.3 10.5

Seadrill 211.4 48% 3.4x 7.1 6.5 8.3 11.1 11.6

Sevan Drilling 3.8 80% 4.0x 5.0 5.4 9.7 12.4 28.5

Songa Offshore 5.3 94% 5.0x 5.3 8.5 10.7 5.7 5.6

Standard Drilling 9.1 19% 2.7x 5.5 4.6 26.3 0.7 -

Transocean 52.19 37% 1.7x 4.5 5.1 5.6 7.5 9.2

Vantage 1.59 85% 5.3x 6.2 5.6 6.3 8.5 12.5

Median 47% 3.0x 5.3 5.1 6.2 7.7 8.1

1) Market cap + net debt 31/12/13E + committed capex and other adjustments 3) Dividend adjusted

2) Mark-to-market: Based end YE 2013 estimates

Net debt/MtM

EBITDA

14

Multiples

DRILLERS Share price Market Cap. EV 1) P/E P/E P/E P/E P/E

KEY FIGURES NOK/USD USDm USDm MtM 15E 14E 13E 12E

Asia Offshore 25.10 175 639 4.2 3.0 3.0 - -

Atwood Oceanics 49.56 3,270 5,181 5.4 5.7 8.1 8.8 12.1

Awilco Drilling 82.00 430 466 2.7 1.8 2.8 3.6 11.0

Diamond Offshore 68.1 9,464 12,241 8.6 7.5 9.1 13.4 13.4

Discovery Offshore 13.0 148 486 5.6 6.6 12.6 - -

Ensco 58.3 13,408 18,650 6.3 5.9 7.3 8.1 11.4

Fred Olsen Energy 249.2 2,886 3,996 5.8 4.8 6.6 8.5 8.4

North Atlantic Drilling 56.0 2,228 5,059 6.9 4.4 7.4 7.6 7.5

Noble 34.8 8,796 16,147 6.3 7.2 8.6 14.5 17.4

Northern Offshore 10.5 286 255 6.9 5.0 4.7 5.2 23.9

Ocean Rig 78.7 1,812 5,830 3.4 3.7 4.9 20.9 -

Pacific Drilling 9.3 2,006 5,393 4.4 5.5 12.1 42.0 -

Prospector Offshore 14.5 239 936 6.1 4.8 6.7 - 3.5

Rowan 34.5 4,274 7,408 5.4 5.6 7.8 15.2 17.6

Seadrill 211.4 17,365 33,393 7.4 5.6 8.6 13.5 14.6

Sevan Drilling 3.8 392 1,975 2.4 3.3 12.2 23.6 -

Songa Offshore 5.3 187 3,151 1.2 2.3 4.2 4.1 11.6

Standard Drilling 9.1 417 512 7.4 5.6 8.6 13.5 14.6

Transocean 52.19 18,788 29,725 5.0 6.3 7.1 11.3 19.3

Vantage 1.59 462 3,177 4.4 3.7 4.5 15.7 -

Median 1,909 4,527 5.5 5.3 7.4 13.4 12.7

1) Market cap + net debt 31/12/13E + committed capex and other adjustments 3) Dividend adjusted

2) Mark-to-market: Based end YE 2013 estimates

UDW market slides

February 2013






Summary

Very limited UDW availability in 2013 – only three available newbuilds

Order activity has slowed down and is expected to remain constrained to large players

Orderbook to be absorbed by replacement of old mid- and deepwater fleet

Demand expected to grow significantly in West Africa with large drilling capaigns ahead

USGoM to continue rebound post Macondo – development of deepwater discoveries driving demand

Brazil expected to have limited incremental demand

New regions Mexico and East Africa to grow in importance

16

UDW market remains active - Dayrates around ~USD 600’/day

Source: ODS-Petrodata, Pareto Research 17

Fixtures and dayrates

Fixtures around ~USD 600’/day for 3Y contracts

Transocean building new drillships on the back of 10Y contracts

Fixture Rate Old

Date Company Rig Rig type Operator Region $'/day $'/day Duration Start-up Comments

19-Feb Ensco Ensco DS-7 6GDS Total Angola 648 N/A 3Y 01-Oct New mutual

19-Feb Ensco Ensco 8500 6GSS Anadarko USGoM 300 300 1Y 01-Sep Priced option

18-Feb Sevan Dri l l ingSevan UDW3 6GSS Operator Tba USGoM 500 N/A 3Y 17-Feb New mutual

07-Feb Ensco ENSCO 8501 6GSS Noble Energy USGoM 375 375 1Y 01-Aug Priced option

07-Feb Saipem Saipem 10000 5GDS Eni Mozambique Private Private 5Y 01-Oct New mutual

04-Feb Ocean Rig Eirik Raude 5GSS Operator Tba Cote d'Ivoire Private 625 1Y 27-Oct New mutual

31-Jan Stena Stena Dri l lMAX 6GDS Hess Ghana Private Private 1M 16-Jan Priced option

22-Jan Vantage Tungsten Expl . 6GDS TBA W Africa 600 N/A 2Y 01-Jul New mutual

17-Jan Seadri l l West Leo 6GSS Tul low Oi l Ghana 616 510 2Y 01-May Priced option

17-Dec Ensco ENSCO 8504 6GSS Shel l Malays ia 535 424 22M 30-Jul New mutual

27-Nov Seadri l l West Si rius 6GDS BP USGoM 535 474 5Y 24-Jul New mutual

12-Nov Seadri l l West Mira 6GSS Husky Oi l Canada 590 N/A 5Y 22-Dec New mutual

08-Nov Transocean Disc. Americas 6GDS Statoi l USA 600 486 2Y 01-Mar New mutual

90

92

94

96

98

100

0

30

60

90

120

150

J-01 J-02 J-03 J-04 J-05 J-06 J-07 J-08 J-09 J-10 J-11 J-12 J-13

Utilization total %

Demand & Supply

Ultra Deepwater rigs > 7500 ft

Dema nd Total supply Utilization

50

250

450

650

Aug-01Aug-02Aug-03Aug-04Aug-05Aug-06Aug-07Aug-08Aug-09Aug-10Aug-11Aug-12

$'/day Ultra deepwater rigs >7500 ft dayrates

The UDW market is soon sold out through 2013


UDW availability before YE’2013

Only three newbuilds available before YE’2013

Two 2013 newbuilds contracted in February (Tungsten Explorer and Ensco DS-7)

Rig Owner Built Depth Operator/Yard Dayrate Free Comments

GSF Explorer Transocean 1998 7800 Dec-12 1 of 2 rigs in ONGC re-tender for 2Y contract

Stena Dril lMAX Stena 2007 7500 Hess Feb-13 Likely follow-up work in W.Africa

Dalian Developer Dalian 2013 10000 COSCO Dalian Jul-13

Tungsten Explorer Vantage 2013 10000 Daewoo / W Africa Jun-13 Has contract from mid-2014 @ USD 600'/day

Deepsea Metro I Odfjell 2011 10000 BG 400 Jun-13

ENSCO 8502 Ensco 2010 8500 Nexen 455 Jul-13

Cajun Express Transocean 2001 8500 Petrobras 518 Jul-13

Deepwater Millennium Transocean 1999 8100 Anadarko 545 Aug-13

Deepwater Discovery Transocean 2000 10000 BP 463 Aug-13

Deepsea Stavanger Odfjell 2010 10000 BP 415 Sep-13 Option likely called

West Tellus Seadrill 2013 10000 Samsung Sep-13

Sedco Energy Transocean 2001 7500 Tullow Oil 440 Oct-13 Option likely called

Stena Carron Stena 2008 7500 Chevron 515 Nov-13

Ocean Rig Skyros Ocean Rig 2013 10000 Samsung Nov-13

Noble Amos Runner Noble 1999 8000 LLOG Nov-13

GSF Development Dril ler II Transocean 2005 7500 BP 580 Nov-13

Pacific Scirocco Pacific 2011 10000 Total 475 Dec-13

2013

Q1 Q2 Q3 Q4

The UDW fleet has grown rapidly, there are 51 units in the orderbooks

The UDW fleet have increased ~118% over the past three years and will increase another ~42% over the next three

Excluding Sete Brasil units, 31 rigs were ordered from Q4’10 until Q3’11, leading to a high number of deliveries in 2013-14

Of the remaining 15 newbuilds scheduled for delivery in 2013, three have not yet been awarded contracts

In 2014, nine out of 26 newbuilds have been awarded contracts

UDW fleet development Newbuild delivery schedule

Source: Pareto Research, ODS 19 Note: Excludes 29 units to be built in Brazil with delivery 2016-2020

29 3656

81106

121 120104

85

1 17 59 89

0

20

40

60

80

100

120

140

160

180

200

2007 2008 2009 2010 2011 2012 2013e 2014e 2015e

Contracted Uncontracted

1

56

5

2 21

2

1

5

8

3

0

2

4

6

8

10

12

Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14

Contracted Uncontracted

UDW orders per quarter

20

A wave of newbuild orders from November 2010 until June 2011

Since then, the difficult financial climate has limited the number of orders

Eight units ordered in Q3 this year, but four of these are against long-term contracts

Source: ODS-Petrodata, Pareto Research

However: Capital restraints and barriers to entry limit further orders

5

10

13

3 3

4

6

8

2

3

350

400

450

500

550

600

650

0

2

4

6

8

10

12

14

Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13

# or orders Dayrate (rhs)

UDW units under construction per company

21 Source: ODS-Petrodata, Pareto Research

Few speculative players have entered the market in this cycle

Note: Excludes 29 units to be built in Brazil with delivery 2016-2020

9

5 5

4 4 4 4 4

3 3

2

8

Almost all newbuilds are built with water depth capacity above 7,500ft

UDW fleet will go from ~41% today to ~53% of total floater fleet upon delivery of current orderbook (assuming no scrapping)

Less than 10% of the UDW fleet is actually drilling UDW

Floater newbuilds by water depth UDW rigs’ current water depth operations

Source: Pareto Research, ODS Petrodata, Company reports 22

39%

51%

9%

< 4,500 ft

4,500-7,500 ft

> 7,500 ft

9%2%

89%

< 4,500 ft

4,500-7,500 ft

> 7,500 ft

Today, only 10 out of 109 UDW units, or 9%, actually drills wells above 7,500ft

This figure has actually decreased since Q3’11, when around 12% were drilling in UDW

Hence, newbuilds are also replacing an ageing mid- and deepwater fleet

Age of global floater fleet (incl newbuilds and stacked)

23

The average age for the mid- and deepwater units are ~30 and 28 years respectively

In 2013, there are 67 mid- and deepwater rigs more than 35 years old

15 of 56 operating deepwater units and 25 of 89 operating midwater rigs have contracts expiring before YE’2013

Fleet removals may thus be imminent


Including mid- and deepwater rigs, the floater fleet is old…

19 21

173

58

25

47

20

0

20

40

60

80

100

120

140

160

180

200

Midwater Deepwater UDW

# of rigs

35Y+ 20-35Y Less than 20

Age development global floater fleet

24

Including 8x midwater units and 2x deepwater units, there are 96 rigs in the orderbooks

62 of these already have contracts at hand

The remaining 34 rigs (including 2x DW and 2x MW) compares with the 67 mid- and deepwater units more than 35 years old

The orderbook is thus likely absorbed by fleet replacements alone


…hence, the large UDW orderbook is less of a threat

109

392

64

122

62

34

0

5

10

15

20

25

30

35

0

50

100

150

200

250

300

350

400

450

Midwater Deepwater UDW Newbuilds Total

# units Average age

Pareto Jackup slides Soon sold out

February 2013






Jackup development - market starting to be sold out

Facts:

1. Excess capacity down to 14 (warm stacked rigs, see slide 13)

2. Cold stacked rigs of 31 will more or less be scrapped….scrapping of 30 units in 2011/2012 (7% of total market), see slide 12

3. Newbuilds at 85 (20% of total current market) to be delivered next 3 years - only 41 of these rigs are competitive and 12 available in 2013

Developments into 2013:

1. We see incremental demand at around +40 next 2 years (which match incremental supply)

2. We strongly believe more than 100 jackups will be scrapped next couple of years (see our January 2011 jackup report)

3. Harsh environment demand robust, older rigs in the North Sea will move to other regions (see slide 27-29)

4. EBITDA per year starting to approach USD 35m for standard modern rigs, while harsh environment gets USD 50-60m. Total cost USD 200m-240m all delivered at drilling location. However, rates are on the move upwards

26

3720 4

42104

52

97

5

15

11

129

84

139

67

226

Newbuilds Modern (<10Y) Medium (10-30Y) Old (>30Y)

High spec Premium Low spec

Fleet upgrade only getting started…

27

Jackup fleet by age and category

Type Water depth (ft) Accomodation (no.) Hook-load capacity(lbs)

High spec IC 350+ 120+ > 2m

Premium IC 300+ Any Any

Low spec Any Any Any Any

86 newbuilds compares with 268 units more than 30 years old

Fleet replacement only getting started

“High spec” jackups replacing “premium” jackups

“Premium jackups replacing “low spec” jackups

…and newbuilding economics improving

Newbuild dayrates

28

Yard cost

Opex

Economics even better in the harsh segment with EBITDA/newbuild cost ~4.4x

Dayrate: USD 230’/day, Opex: USD 90’/day, Yard cost: USD 225m

2011 2013

USD 160’/day

USD 65’/day

USD 205m

USD 135’/day

USD 60’/day

USD 205m

EBITDA/Yard cost 5.9x 7.5x

Dayrates for premium jackups now at around USD 160’


Fixture Rate Old


19-Feb Gulf Dri l l ing Al -Jassra 400F IC 13 Maersk Oi l Qatar 145 N/A 4Y Jun-13 New mutual

19-Feb Ensco ENSCO 107 400F IC 06 Mitra Energy Vietnam 160 149 3M Mar-13 New mutual

15-Feb Seadri l l West Courageous 350F IC 07 Operator Tba Malays ia Private Private 1M Feb-13 New mutual

06-Feb PV Dri l l ing PV Dri l l ing II 375F IC 09 Lamson Vietnam Private Private 1Y Jul -13 New mutual

04-Feb Ensco ENSCO 107 400F IC 06 OMV New Zealand Private 149 9M Oct-13 New mutual

31-Jan Rowan Rowan EXL II I 350F IC 13 Nexen USA 160 140 2M Feb-13 New mutual

31-Jan Apexindo Soehanah 375F IC 07 Total Indones ia 152 124 30M Feb-13 New mutual

24-Jan Noble Noble Houston Colbert400F IC 13 ConocoPhi l l ipsAlaska 235 N/A 1Y Dec-13 New mutual

24-Jan Noble Noble Sam Turner 400F IC 14 Maersk Oi l Denmark 215 N/A 2Y Jul -14 New mutual

22-Jan Atwood Atwood Orca 400F IC 13 Mubadala Thai land 159 N/A 2Y May-13 New mutual

21-Jan Japan Dri l l ing Hakuryu-11 425F IC 13 Conson JOC Vietnam 163 N/A 3M Jun-13 New mutual

80

84

88

92

96

100

0

30

60

90

120

150

Jan-01 Jan-03 Jan-05 Jan-07 Jan-09 Jan-11 Jan-13

Utilization effective %

Demand & Supply

IC JU's > 300 feet built after 1990

Total supply Effective supplyDemand Effective utiliz. %

30

70

110

150

190

230


$'/day

IC JU's > 300 feet < 10 yrs

Improved utilization older JU’s – day rates have increased sharply


Fixture Rate Old


20-Feb Northern Offs . Energy Endeavour 300F IC 82 ADTI UK 155 108 2M Jun-13 New mutual

19-Feb Ensco ENSCO 92 225F IC 82 ConocoPhi l l ipsUK 160 145 4M Mar-14 New mutual

13-Feb Fores ight Fores ight Dri l ler V 160F IC 80 Operator Tba Iran 85 85 1Y Jul -13 New mutual

13-Feb Fores ight Fores ight Dri l ler IX 350F IC 83 Operator Tba Iran 155 155 1Y Oct-13 New mutual

13-Feb Shel f Dri l l ing Trident 16 300F IC 82 PVEP Myanmar 151 133 8M Mar-13 New mutual

05-Feb Ensco ENSCO 81 350F IC 79 Stone Energy USGoM 138 90 7M Apr-13 New mutual

04-Feb Ensco ENSCO 71 225F IC 82 Maersk Oi l Denmark Private 110 1Y May-13 Priced option

04-Feb GSP GSP Saturn 300F IC 88 Wintershal l Netherlands Private 115 1Y May-13 New mutual

30-Jan Shel f Dri l l ing High Is land V 270F IC 81 Saudi Aramco Saudi Arabia Private Private 5Y Oct-13 New mutual

29-Jan Diamond Ocean Nugget 300F IC 76 PEMEX Mexico 97 84 1,136D May-13 New mutual

25-Jan Saipem Perro Negro 2 300F IC 80 Total UAE 78 68 1Y Jan-14 Priced option

70

76

82

88

94

100

50

70

90

110

130

150


Utilization effective %

Demand & Supply

IC JU's > 300 feet built before 1990

Demand Supply Supply Utiliz. (%)

30

70

110

150

190

Jan-00 Jul-01 Jan-03 Jul-04 Jan-06 Jul-07 Jan-09 Jul-10 Jan-12

$'/day

IC JU's > 300 feet > 10 yrs

Jackup tender activity at full pace - +22% over past four months

31 Source: ODS, Pareto Research

The tender activity is very high at the moment despite many new awards:

+22% in firm tenders, +6% in overall open demand over the past 4 months!

North Sea is extremely active and ONGC with a huge tender out at 40 rig years

Middle East is down after they have taken several long term contracts lately

68

83

47

17

34

6

44

0

10

20

30

40

50

60

70

80

90

NWEurope

MiddleEast

SE Asia IndianOcean

W Africa Med/BlackSea

Other

Tender Pre-tender Probable Possible

76

70

4845

33

8

37

0

10

20

30

40

50

60

70

80

NWEurope

MiddleEast

SE Asia IndianOcean

W Africa Med/BlackSea

Other

Tender Pre-tender Probable Possible

Development in open demand 01.09.12 – 03.01.13

+8 -13

+1 +28

+1

+2

-6

Jackup contracts: Both duration and lead time increasing steadily

32 Source: Pareto Research, ODS

New jackup contracts: Duration and lead time development

Note: Does not include exercised options

The chart to the right shows the development in lead time and duration for new jackup contracts

As can be seen, both have increased steadily since 2010

Both are now far above the levels seen at peak in 2007-2008

These figures include all new jackup fixtures

Lead time and duration are always leading indicators when it comes to the dayrate development, and we have seen a solid uptick over the past 15 months, particularly for older units

80 89

4872

117

160

261 250

284270

346

387

0

50

100

150

200

250

300

350

400

2007 2008 2009 2010 2011 2012

Lead time Duration

# of days

Jackup fleet status

Source: ODS, Pareto Research

Fleet status as of February 2013

33

Utilization remains high for newer, quality rigs

In our view, the number of warm stacked rigs will continue to remain in the 20-30 rig range, due to rigs being in yards and between contracts

At present, there are 85 rigs in the orderbooks, with the majority arriving in 2013

However, only 41 of these will be available for the open market

We strongly believe these newbuilds will be absorbed

385430

515

1431 85

0

5

10

15

20

25

30

35

40

0

100

200

300

400

500

600

Contracted Warmstacked

Cold stacked Total Newbuilds Supply incl.Newbuilds

Age (yrs)# of units

Incremental jackup supply is 12 units in 2013

34

Jackup newbuild supply

Source: ODS, Pareto Research

85 newbuilds, but only 44 uncompetitive (our assumptions)

Local rigs in China, Iran, UAE India or Mexico

“Owner-operated”

21 of 41 competitive jackups contracted

12 of the remaining delivereies are due in 2013

2 x Discovery

2 x Asia Offshore (SDRL)

Noble

2 x Yantai CIMC Raffles

(speculative yard orders)

1 x Prospector

1 x Ensco

4 x Others (UMW, Arabdrill, KS Energy, Gulf Drilling)

85

21

44

20

12

8 1

Growing demand and ageing fleet – newbuilds will be absorbed

35

Age development global jackup fleet

The current fleet is old, and only becoming older

By 2015, there will be 268 rigs aged more than 30 years, which, assuming no scrapping, is more than 50% of the fleet

~7% will at the same time be more than 40 years old, 5x the number of units of that age today

These units will be scrapped – sooner rather than later


Age profile global jackup fleet

0

10

20

30

40

50

60

70

80

19

65

19

67

19

69

19

71

19

73

19

75

19

77

19

79

19

81

19

83

19

85

19

87

19

89

19

91

19

93

19

95

19

97

19

99

20

01

20

03

20

05

20

07

20

09

20

11

20

13

20

15

Contracted Warm Stacked Cold Stacked Newbuilds

# of rigs

10 1424

36

117

59 6786

117

268

237255 263 268

281

0

50

100

150

200

250

300

2012 2013E 2014E 2015E 2020E

40 years or more 35 years or more 30 years or more

# of rigs

1

2

3

6

8

7

10

6

12

2

11

9

8

3

4

2

1 1 1

4

1 1 1 1

4

1

12

18

0

2

4

6

8

10

12

14

16

18

20

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

# of rigs

And the scrapping wave has started

36

Last year, 3x Hercules rigs and 1x Arabdrill JU were sold for scrap

Transocean has sold several jackups to AMS/Ezion, of which 2 are to be converted to accommodation units

In May, Diamond followed with another 3x mat rigs, we assume these rigs will not be used as drilling rigs

Including a few other scrappings, 18 jackups were removed from the market in 2012 (excl. those removed due to accidents)

30 rigs were thus been removed in 2011-2012, which is higher than the sum of the 15 preceding years…

Jackups removed from the market (excl. accidents) per year 1980-2012

Source: Pareto Research, ODS

2011-2012: 30x Average age 31Y

1995-2010: 22x Average age 28Y

Leading to fewer stacked rigs → our jackup story is happening!

37

Over the past 3-4 months, the number of , the number of warm stacked have decreased significantly from 32 to 18

Meanwhile, the number of cold stacked rigs have increased by five units to 40.

15x units have been scrapped/converted during 2012

Some cold stacked units have been acquired by smaller players for specific contract opportunities, and will come back to the market

Number of stacked jackups rigs

Source: Pareto Research, ODS

7762

2921 20

32 32

16 14

56

68

64

59 56 35 35

3431

133 130

93

8076

67 67

5045

0

20

40

60

80

100

120

140

Jan-10 Oct-10 Jul-11 Oct-11 Jan-12 Jul-12 Sep-12 Jan-13 Feb-13

Cold stacked Warm stacked

38 Source: Pareto Research, ODS

Middle East

West Africa

NW Europe

Jackups have migrated from USA to Mexico and Asia

Note: All figures including all jackups in the region

USGoM activity is down more than 50% last 10yrs – this trend is over Mexico/Asia have absorbed this supply – and demand will continue to rise

South East Asia

India

Med. & Black Sea 111

72

410

50

100

150

2002 2007 2012

21

31 34

0

10

20

30

40

2002 2007 2012

24 25 24

0

10

20

30

2002 2007 2012

34 3542

0

10

20

30

40

50

2002 2007 2012

76

5

0

2

4

6

8

2002 2007 2012

11

18 17

0

5

10

15

20

2002 2007 2012

62

92117

0

50

100

150

2002 2007 2012

21

32 30

0

10

20

30

40

2002 2007 2012

2737

59

0

20

40

60

80

2002 2007 2012

39

Disclaimers and disclosures

Origin of the publication or report This publication or report originates from Pareto Securities AS (“Pareto Securities”, reg. no. 956 632 374 (Norway) and Pareto Öhman AB (“Pareto Öhman”), reg. no. 556206-8956 (Sweden) and Pareto Securities Oy (“Pareto Finland”) reg. No. 2045188-8 (Finland) and (together the Group Companies or the “Pareto Securities Group”) acting through their common unit Pareto Securities Research. The Group Companies are supervised by the Financial Supervisory Authority of their respective home countries. Content of the publication or report This publication or report has been prepared solely by Pareto Securities Research. Opinions or suggestions from Pareto Securities Research may deviate from recommendations or opinions presented by other departments or companies in the Pareto Securities Group. The reason may typically be the result of differing time horizons, methodologies, contexts or other factors. Basis and methods for assessment Opinions and price targets are based on one or more methods of valuation, for instance cash flow analysis, use of multiples, behavioral technical analyses of underlying market movements in combination with considerations of the market situation and the time horizon. Key assumptions of forecasts, price targets and projections in research cited or reproduced appear in the research material from the named sources. The date of publication appears from the research material cited or reproduced. Opinions and estimates may be updated in subsequent versions of the publication or report, provided that the relevant company/issuer is treated anew in such later versions of the publication or report. Credit ratings are based on the same rating scale as international rating agencies and represent the opinion of Pareto Securities Research as to the relative creditworthiness of securities. A credit rating on a standalone basis should not be used as a basis for investment operations. Pareto Securities Research may also provide credit research with more specific price targets based on different valuation methods, including the analysis of key credit ratios and other factors describing the securities creditworthiness, peer group analysis of securities with similar creditworthiness and different DCF-valuations. All credit ratings mentioned in this publication or report are Pareto Securities Research’s own credit rating estimates unless otherwise mentioned. All descriptions of loan agreement structures and loan agreement features are obtained from sources which Pareto Securities Research believes to be reliable, but Pareto Securities Research does not represent or warrant their accuracy. Be aware that investors should go through the specific complete loan agreement before investing in any bonds and not base an investment decision based solely on information contained in this publication or report. Pareto Securities Research has no fixed schedule for updating publications or reports. Unless otherwise stated on the first page, the publication or report has not been reviewed by the issuer before dissemination. In instances where all or part of a report is presented to the issuer prior to publication, the purpose is to ensure that facts are correct. Validity of the publication or report All opinions and estimates in this publication or report are, regardless of source, given in good faith and may only be valid as of the stated date of this publication or report and are subject to change without notice. No individual investment or tax advice The publication or report is intended only to provide general and preliminary information to investors and shall not be construed as the basis for any investment decision. This publication or report has been prepared by Pareto Securities Research as general information for private use of investors to whom the publication or report has been distributed, but it is not intended as a personal recommendation of particular financial instruments or strategies and thus it does not provide individually tailored investment advice, and does not take into account the individual investor’s particular financial situation, existing holdings or liabilities, investment knowledge and experience, investment objective and horizon or risk profile and preferences. The investor must particularly ensure the suitability of an investment as regards his/her financial and fiscal situation and investment objectives. The investor bears the risk of losses in connection with an investment. Before acting on any information in this publication or report, we recommend consulting your financial advisor. The information contained in this publication or report does not constitute advice on the tax consequences of making any particular investment decision. Each investor shall make his/her own appraisal of the tax and other financial merits of his/her investment.

V. 02.13

40


Sources This publication or report may be based on or contain information, such as opinions, recommendations, estimates, price targets and valuations which emanate from Pareto Securities Research’ analysts or representatives, publicly available information, information from other units or companies in the Group Companies, or other named sources. To the extent this publication or report is based on or contains information emanating from other sources (“Other Sources”) than Pareto Securities Research (“External Information”), Pareto Securities Research has deemed the Other Sources to be reliable but neither the companies in the Pareto Securities Group, others associated or affiliated with said companies nor any other person, guarantee the accuracy, adequacy or completeness of the External Information. Ratings Equity ratings: “Buy” Pareto Securities Research expects this financial instrument’s total return to exceed 10% over the next six months “Hold” Pareto Securities Research expects this financial instrument’s total return to be 0-10% over the next six months “Sell” Pareto Securities Research expects this financial instrument’s total return to be negative over the next six months Credit ratings: AAA Best Quality AA+ / AA / AA- Strong ability for timely payments A+ / A / A- Somewhat more exposed for negative changes BBB+ / BBB / BBB- Adequate ability to meet payments. Some elements of protection. BB+ / BB / BB- Speculative risk. Future not well secured B+ / B / B- Timely payments at the moment, but very exposed to any negative changes CCC+ /CCC/ CCC- Default a likely option Limitation of liability Pareto Securities Group or other associated and affiliated companies assume no liability as regards to any investment, divestment or retention decision taken by the investor on the basis of this publication or report. In no event will entities of the Pareto Securities Group or other associated and affiliated companies be liable for direct, indirect or incidental, special or consequential damages resulting from the information in this publication or report. Neither the information nor any opinion which may be expressed herein constitutes a solicitation by Pareto Securities Research of purchase or sale of any securities nor does it constitute a solicitation to any person in any jurisdiction where solicitation would be unlawful. All information contained in this research report has been compiled from sources believed to be reliable. However, no representation or warranty, express or implied, is made with respect to the completeness or accuracy of its contents, and it is not to be relied upon as authoritative. Risk information The risk of investing in certain financial instruments, including those mentioned in this document, is generally high, as their market value is exposed to a lot of different factors such as the operational and financial conditions of the relevant company, growth prospects, change in interest rates, the economic and political environment, foreign exchange rates, shifts in market sentiments etc. Where an investment or security is denominated in a different currency to the investor’s currency of reference, changes in rates of exchange may have an adverse effect on the value, price or income of or from that investment to the investor. Past performance is not a guide to future performance. Estimates of future performance are based on assumptions that may not be realized. When investing in individual shares, the investor may lose all or part of the investments.

41


Conflicts of interest Companies in the Pareto Securities Group, affiliates or staff of companies in the Pareto Securities Group, may perform services for, solicit business from, make a market in, hold long or short positions in, or otherwise be interested in the investments (including derivatives) of any company mentioned in the publication or report. To limit possible conflicts of interest and counter the abuse of inside knowledge, the analysts of Pareto Securities Research are subject to internal rules on sound ethical conduct, the management of inside information, handling of unpublished research material, contact with other units of the Group Companies and personal account dealing. The internal rules have been prepared in accordance with applicable legislation and relevant industry standards. The object of the internal rules is for example to ensure that no analyst will abuse or cause others to abuse confidential information. 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Distribution restriction The securities referred to in this publication or report may not be eligible for sale in some jurisdictions and persons into whose possession this document comes should inform themselves about and observe any such restrictions. This publication or report is not intended for and must not be distributed to private customers in Great Britain or the US. This research report is only intended for and may only be distributed to institutional investors in the United States and U.S. entities seeking more information about any of the issuers or securities discussed in this report should contact Auerbach Grayson & Company at 25 West 45th Street New York, NY 10036 Tel. 1 212-453-3549 or Pareto Securities Inc. at 150 East 52nd Street, New York, NY 10022, Tel. 212 829 4200. Auerbach Grayson & Company is a broker-dealer registered with the U.S. Securities and Exchange Commission and is a member of the FINRA & SIPC. 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42


Distribution in Singapore Pareto Securities Asia Pte Ltd (“Pareto Securities Asia”) is an exempt financial advisor under the Singapore Financial Advisers Act and a subsidiary of Pareto Securities AS in Singapore. This report is directed only to "accredited investors", "expert investors" and "institutional investors" as defined in the Singapore Securities and Futures Act. This report is intended for general circulation amongst such investors and does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should seek advice from a financial adviser regarding the suitability of any product referred to in this report, taking into account your specific financial objectives, financial situation or particular needs before making a commitment to purchase any such product. Please contact Pareto Securities Asia, 16 Collyer Quay, # 27-02 Hitachi Tower, Singapore 049318, at +65 6408 9800 in respect of any matters arising from or in connection with this report. Additional provisions on Recommendations distributed in the Canada Canadian recipients of this research report are advised that this research report is not, and under no circumstances is it to be construed as, an offer to sell or a solicitation of or an offer to buy any securities that may be described herein. This research report is not, and under no circumstances is it to be construed as, a prospectus, offering memorandum, advertisement or a public offering in Canada of such securities. No securities commission or similar regulatory authority in Canada has reviewed or in any way passed upon this research report or the merits of any securities described or discussed herein and any representation to the contrary is an offence. Any securities described or discussed within this research report may only be distributed in Canada in accordance with applicable provincial and territorial securities laws. Any offer or sale in Canada of the securities described or discussed herein will be made only under an exemption from the requirements to file a prospectus with the relevant Canadian securities regulators and only by a dealer properly registered under applicable securities laws or, alternatively, pursuant to an exemption from the dealer registration requirement in the relevant province or territory of Canada in which such offer or sale is made. Under no circumstances is the information contained herein to be construed as investment advice in any province or territory of Canada nor should it be construed as being tailored to the needs of the recipient. Canadian recipients are advised that Pareto Securities AS, its affiliates and its authorized agents are not responsible for, nor do they accept, any liability whatsoever for any direct or consequential loss arising from any use of this research report or the information contained herein. Copyright This publication or report may not be mechanically duplicated, photocopied or otherwise reproduced, in full or in part, under applicable copyright laws. Any infringement of Pareto Securities Research´s copyright can be pursued legally whereby the infringer will be held liable for any and all losses and expenses incurred by the infringement.

43


Column I Column II

Buy 66.1% 85.70%

Hold 25.4% 11.40%

Sell 8.5% 2.90%

This overview is updated quarterly (last updated 15.01.2013).

CompanyAnalyst

holdings

Total

holdingsCompany

Analyst

holdings

Total

holdings

Archer - 17 500 Olav Thon Eiendomsselskap 420 920

Bonheur - 15 800 Orkla - 22 564

BW Offshore - 61 686 Petroleum Geo-Services - 2 700

BWG Homes 14 300 14 300 Prosafe - 1 405

Cermaq - 3 000 Protector Forsikring - 499 000

Discovery Offshore - 12 000 Questerre Energy - 67 000

DNB - 48 227 Renewable Energy Corp - 53 843

DNO International - 20 400 SalMar - 58 400

DOF - 100 000 Sandnes Sparebank - 5 617

EOC Limited - 25 000 Seadrill - 5 500

Farstad Shipping - 21 700 Selvaag Bolig - 50 000

Fred Olsen Energy 100 300 Ship Finance Ltd - 3 184

Gjensidige Forsikring - 2 129 Solstad Offshore - 4 100

Golden Ocean Group - 50 200 Sparebank 1 Nord-Norge - 20 637

Havila Shipping - 3 650 Sparebank 1 SR-Bank - 139 414

Höegh LNG - 7 263 Sparebanken Øst - 22 349

Itera 40 000 41 000 Statoil - 8 742

Kongsberg Gruppen 1 200 59 700 Storebrand - 2 263

Lerøy Seafood Group - 13 000 Subsea 7 - 76 471

Marine Harvest Group - 20 000 Telenor - 7 800

Morpol - 118 000 TGS-NOPEC - 7 450

Norsk Hydro - 346 308 Veidekke - 42 400

Northland Resources - 467 000 Wilh. Wilhelmsen Holding A - 404

Norwegian Energy Com - 75 000 Yara International - 30 529

Odfjell - 7 300

This overview is updated monthly (last updated 31.01.2013)

Appendix A

Disclosure requirements pursuant to the Norwegian Securities Trading Regulations section 3-10 (2) and section 3-11 (1), letters a-b

Pareto Securities AS does not alone or - together with affiliated companies or persons – owns a portion of the shares exceeding 5 % of the total share capital in any company where a recommendation has been produced or distributed by Pareto Securities AS.

Pareto Securities AS or its affiliates own as determined in accordance with Section 13(d) of the Exchange Act, 1 % or more of the equity securities of Equinox Offshore Accommodation Ltd.

Pareto Securities AS may hold financial instruments in companies where a recommendation has been produced or distributed by Pareto Securities AS in connection with rendering investment services, including Market Making.

Please find below an overview of material interests in shares held by employees in Pareto Securities AS, in companies where a recommendation has been produced or distributed by Pareto Securities AS. By material interest is meant holdings exceeding a value of NOK 50 000.

Appendix B

Disclosure requirements pursuant to the Norwegian Securities Trading ST Regulation § 3-11, letters d-f, ref the Securities Trading Act Section 3-10

Overview over issuers of financial instruments where Pareto Securities AS have prepared or distributed investment recommendation, where Pareto Securities AS have been lead manager/co-lead manager or have rendered publicly known not immaterial investment banking services over the previous 12 months:

Appendix C

Disclosure requirements pursuant to the Norwegian Securities Trading ST Regulation § 3-11 (4)

Column I shows the overall ratio of “Trading Buy”, “Buy”, “Hold”, “Sell” and “Trading Sell” in Pareto’s Recommendations in financial instruments.

Column II shows the ratio of “Trading Buy”, “Buy”, “Hold”, “Sell” and “Trading Sell” in Pareto’s Recommendations in financial instruments where Pareto Have provided investment banking services to the issuer the previous 12 months.

- AGR Group - Grieg Seafood - Panoro Energy

- Aker - Haikui - Prospector Offshore Drilling

- Aker Floating Production - Havila Shipping - Protector Forsikring

- Austevoll Seafood - Hercules Offshore - Rocksource

- BassDrill - Houston American Energy Corp - Saga Tankers

- Bergen Group - Höegh LNG - SalMar

- Berner Gruppen - Idex - Scana Industrier

- BN Bank - Interoil - Scandinavian Insurance Group

- BW Offshore - Kistefos - Selvaag Bolig

- Clearwater - KrisEnergy Holding - Sevan Drilling

- Concedo - Mecom Group - Siemens

- DDI - Morpol - Sigma Drilling

- Det Norske Oljeselskap - NEC - SinOceanic Shipping

- DNB - Neptune Offshore - Solør Bioenergi

- Dockwise - Noreco - Songa Offshore

- DOF - Norse Energy - Sparebank 1 SR Bank

- DOF Subsea - North Atlantic Drilling - Sparebanken Møre

- Dolphin Group - North Energy - Sparebanken Øst

- EMS Seven Seas - Northern Offshore - Teekay

- Equinox - Northland Resources - Teekay LNG

- Expro Intl Group Holdings - Ocean Yield - Tizir

- Fjord Line - Oceanteam Shipping - Troll

- Floatel - Odfjell Drilling - TTS Group

- GasLog - OSX - Wilh. Wilhelmsen

- Global Investment Group Finance - Pacific Drilling - Xtreme Drilling and Coil Services

This overview is updated monthly (this overview is for the period 31.01.2012 – 31.01.2013).

44


Appendix D

This section applies to research reports prepared by Pareto Öhman AB.

Disclosure of positions in financial instruments

The beneficial holding of the Pareto Group is 1 % or more of the total share capital of the following companies included in Pareto Öhman AB’s research coverage universe: Isconova.

The Pareto Group has material holdings of other financial instruments than shares issued by the following companies included in Pareto Öhman AB’s research coverage universe: RusForest.

Disclosure of assignments and mandates

Overview over issuers of financial instruments where Pareto Öhman has prepared or distributed investment recommendation, where Pareto Öhman AB has been lead manager or co-lead

manager or has rendered publicly known not immaterial investment banking services over the previous twelve months:

Africa Oil Isconova ShaMaran Petroleum

Alpcot Agro Klövern Sagax

Blackpearl Resources Lucara Diamond Tethys Oil

Black Earth Farming RusForest Vostok Nafta

Dannemora Mineral

Members of the Pareto Group provide market making or other liquidity providing services to the following companies included in Pareto Öhman AB’s research coverage universe:

Africa Oil Isconova Tethys Oil

Blackperal Resources ShaMaran Petroleum Trigon Agri

Lucara Diamond

Members of the Pareto Group have entered into agreements concerning the inclusion of the company in question in Pareto Öhman AB’s research coverage universe with the following companies:

Africa Oil, Isconova, Shamaran Petroleum.

This overview is updated monthly (last updated 15.02.2013).

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