Report for the third quarter 2018

Financial and operating highlights 3Q 2018 (3Q 2017 in brackets):

• Operating revenues were NOK 2 008 million (NOK 2 180 million)
• EBITDA (operating result before depreciation, impairment, result from associates, finance and tax)
  was NOK 264 million (NOK 572 million)
• Year on year EBITDA improvement of NOK 101 million apart from Offshore drilling
• Depreciation was NOK 658 million (NOK 652 million)
• Impairment was NOK 182 million (NOK 16 million
• EBIT (operating result) was NOK - 576 million (NOK - 96 million
• Net finance was NOK - 144      million (NOK - 208 million)
• Net result after tax was NOK - 743 million (NOK - 338 million)

Renewable energy

• EBITDA NOK 221 mill. (NOK 137 mill.)
• Total generation up 7%
• Like-for-like generation unchanged
• Increasing electricity prices in all markets
• Fred. Olsen Green Power AS established

Shipping / Offshore wind

• EBITDA NOK 128 mill. (NOK 102 mill.)
• Utilization for installation vessels 100% (73%).
• Contract pipeline to 3Q 2020 covered 33% by firm contracts
• High activity in GWS

Offshore drilling

• EBITDA NOK - 208 mill. (NOK 201 mill.)
• Bredford and Belford Dolphin to be decommissioned

Cruise

• EBITDA NOK 171 mill. (NOK 159 mill.)
• Net ticket income per diems increased 1%
• Passenger days increased 6%

Other investments

• EBITDA NOK -47 mill. (NOK -27 mill.)
• NHST – sale of Nautisk Forlag AS
• NHST – acquired 85% of Mention Solutions SAS (France)

Financial information

The unaudited Group accounts for 3 quarter 2018 comprise Bonheur ASA (“the Company”) and its subsidiaries (“the Group of companies”) and the Group of companies’ ownership of associates.

The main business segments of the Group of companies are Renewable energy, Shipping / Offshore wind, Offshore drilling, Cruise and Other investments.

The Group of companies’ operating revenues in the quarter amounted to NOK 2 008 million (NOK 2 180 million). Renewable energy had operating revenues of NOK 344 million (NOK 233 million), Shipping / Offshore wind NOK 512 million (NOK 398 million), Offshore drilling NOK 148 million (NOK 607 million) and Cruise NOK 679 million (NOK 620 million). Within Other investments NHST Media Group had operating revenues of NOK 318 million (NOK 309 million).

EBITDA in the quarter was NOK 264 million (NOK 572 million). Renewable energy achieved EBITDA of NOK 221 million (NOK 137 million), Shipping/Offshore wind NOK 128 million (NOK 102 million), Offshore drilling NOK - 208 million (NOK 201 million), while Cruise achieved EBITDA of NOK 171 million (NOK 159 million). Within Other investments EBITDA were NOK - 47 million (NOK - 27 million).

Depreciation in the quarter was NOK 658 million (NOK 652 million). Impairment was NOK 182 million (NOK 16 million), of which NOK 163 million within Offshore drilling.

EBIT in the quarter was NOK - 576 million (NOK - 96 million).

Net financial items in the quarter were NOK -144 million (NOK - 208 million). Net interest expenses were NOK 157 million (NOK 125 million) and net currency loss amounted to NOK 11 million (NOK 102 million). Net unrealized gain related to fair value adjustment of financial instruments were NOK 39 million (NOK 36 million). Other financial expenses amounted to NOK 15 million (NOK 15 million).

Net result in the quarter was NOK – 743 million (NOK - 338 million), of which NOK - 351 million are attributable to the shareholders of the parent company (NOK - 164 million). The non-controlling interests´ share of net result in the quarter was thus NOK - 392 million (NOK - 17 million).

Revenues for the first nine months were NOK 5 777 million (NOK 6 570 million) while EBITDA year to date were NOK 639 million (NOK 1 957 million). Operating result (EBIT) year to date was NOK -2 359 million (NOK – 740 million). Net financial items were NOK - 537 million (NOK - 391 million), and net result after estimated tax was NOK - 2 947 million (NOK - 1 298 million), of which NOK - 1 616 million
(NOK - 594 million) are attributable to the shareholders of the parent company.