Earnings Presentation

Third Quarter 2014 CEO – Terje Sorensen

23 October 2014

Disclaimer

This presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and

uncertainties that could cause actual results to differ. Such forward-looking information and statements are based on current

expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries

that are major markets for Siem Offshore (“SIOFF”) and its subsidiaries. These expectations, estimates and projections are

generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions. Important

factors that could cause actual results to differ materially from those expectations include, among others, economic and market

conditions in the geographic areas and industries that are or will be major markets for the Siem Offshore businesses, oil prices,

market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency

exchange rates and such other factors as may be discussed from time to time. Although Siem Offshore believes that its

expectations and the information in this Presentation were based upon reasonable assumptions at the time when they were

made, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in this

Presentation. Siem Offshore nor any other company within the group is making any representation or warranty, expressed or

implied, as to the accuracy, reliability or completeness of the information in the Presentation, and neither Siem Offshore , any

other company within the group nor any of their directors, officers or employees will have any liability to you or any other persons

resulting from your use of the information in the Presentation. Siem Offshore undertakes no obligation to publicly update or revise

any forward-looking information or statements in the Presentation.

There may have been changes in matters which affect Siem Offshore subsequent to the date of this presentation. Neither the

issue nor delivery of this presentation shall under any circumstance create any implication that the information contained herein is

correct as of any time subsequent to the date hereof or that the affairs of Siem Offshore has not since changed, and Siem

Offshore does not intend, and does not assume any obligation, to update or correct any information included in this presentation.

The contents of this presentation are not to be construed as legal, business, investment or tax advice. Each recipient should

consult with its own legal, business, investment and tax adviser as to legal, business, investment and tax advice. This

presentation is subject to Norwegian law, and any dispute arising in respect of this presentation is subject to the exclusive

jurisdiction of the Norwegian courts.

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• Third quarter 2014 operating revenue of USD 145.0 million and operating margin of USD

59.3 million (41%), an increase from USD 96.7 million and USD 44.1 million (46%) in third

quarter 2013.

• The fleet in operation at the end of the third quarter totalled 44 vessels, including partly

owned vessels and two vessels operated on behalf of a pool member. The comparable

number at the end of third quarter 2013 was 42 vessels.

• Debt financing of USD 350 million has been obtained for the two well-intervention vessels

(“WIV”) to be delivered in first and third quarter 2016, of which both shall commence long-

term charters upon delivery from yard.

• Siem Offshore Contractors continued the installation of submarine power cables for two of its

projects during third quarter. Project execution has generally been postponed due to delays

imposed by the clients, with a corresponding delay to the recording of revenue and

recognition of margin.

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Highlights Third Quarter 2014

Result and Finance

• The 2007-built PSV “Siem Sailor” was sold and delivered in July 2014 for a price of USD 48

million. The sale represents a gain of USD 11 million, and a net cash effect of USD 26 million

after repayment of mortgage debt.

• The Company took delivery of the offshore subsea construction vessel (“OSCV”) “Siem

Stingray” in July from the Vard shipyard in Norway. This vessel was the last OSCV in the

series of four OSCVs. All vessels have commenced long-term contracts.

• The Company entered into an agreement with Daya Materials Bhd. (“Daya”) in August 2014

for the sale of the two 2013-built OSCVs “Siem Daya 1” and “Siem Daya 2”, which are

currently chartered by Daya. Daya has been given 150 days from August 2014 to arrange for

financing of the two vessels and delivery of the vessels is scheduled to take place latest by

mid-April 2015. The en-bloc sales price is USD 282 million. The sale would generate a gain,

which will be recorded at the delivery of the vessels. The sales proceeds will be used to

repay mortgage debt, currently at USD 151 million, and for working capital.

4

Highlights Third Quarter 2014

Yard delivery and sale of vessels

Comments to Third Quarter Income Statement

• 100% utilisation of the OSCV fleet.

• 6 vessels in operation at the end of the quarter.

• All vessels on long-term charters.

• One vessel was delivered from yard during the quarter.

• 98% utilisation of the PSV fleet.

• All 11 vessels on medium to long-term charters.

• Four PSVs are employed offshore West Africa, four offshore Brazil, two in the North Sea region and

one PSV is on a bareboat charter.

• One vessel was sold and delivered during the quarter.

• 90% utilisation of the AHTS fleet.

• 5 vessels operated on term contracts offshore Brazil.

• One vessel operated on a medium-term contract offshore Morocco.

• Two vessels were employed in the Arctic.

• One vessel for support for Siem Offshore Contractors.

• One vessel operated in the North Sea spot market during the quarter.

• 88% utilisation for the fleet of smaller Brazilian flagged vessels.

• 7 vessels on long-term charters and 1 vessel on medium term charter at the end of the quarter.

• 1 vessel agreed sold during the quarter.

5

Operating Margin Third Quarter

3Q 2014 3Q 2013

Amounts in

USD million Operating

revenue

Operating

expenses

Operating

margin

Operating

margin %

Operating

revenue

Operating

expenses

Operating

margin

Operating

margin %

PSVs [2] 29.8 ( 11.1) 18.7 63 % 25.4 ( 13.4) 12.0 47 %

OSCVs 30.1 ( 9.0) 21.1 70 % 10.3 ( 4.2) 6.1 59 %

AHTS vessels[2] 39.0 ( 15.5) 23.5 60 % 41.4 ( 16.1) 25.3 61 %

Smaller Brazilian flagged vessels[1] 4.7 ( 4.9) ( 0.2) (5 %) 4.9 ( 1.8) 3.1 63 %

Scientific core drilling 6.6 ( 3.2) 3.4 52 % 10.3 ( 4.5) 5.9 57 %

Cable installation [2] 39.3 ( 36.6) 2.6 7 % 1.9 ( 0.6) 1.3 68 %

CMS 1.5 ( 1.7) ( 0.1) 1.3 ( 0.9) 0.4

Siem WIS 0.2 ( 0.2) 0.0 0.6 ( 0.2) 0.4

Other 4.7 ( 2.0) 2.7 0.6 0.0 0.6

G&A ( 12.5) ( 12.5) ( 10.8) ( 10.8)

Intercompany eliminations [2] ( 11.0) 11.0 0,0 0.0

Total 145.0 ( 85.7) 59.3 41 % 96.7 ( 52.6) 44.1 46 %

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[1] Smaller Brazilian flagged vessels include Oil Spill Recovery Vessels and Fast Supply and Crew Boats

[2] The PSV and the AHTS segment includes I/C revenue from contracting work for the 100% owned subsidiary “Siem Offshore Contractors” . The

offsetting IC opex is included under the Cable Installation segment.

Income Statement Third Quarter

Third Quarter Nine Months Ended

Amounts in USD million

2014

Unaudited

2013

Unaudited

2014

Unaudited

2013

Unaudited

2013

Audited

Operating revenue 145.0 96.7 353.6 268.9 364.0

Operating expenses ( 73.2) ( 41.8) ( 183.0) ( 142.1) ( 190.6)

Administration expenses ( 12.5) ( 10.8) ( 36.2) ( 31.4) ( 50.7)

Operating margin [1] 59.3 44.1 134.4 95.4 122.7

Operating margin % 41 % 46 % 38 % 35 % 34 %

Depreciation and amortisation ( 24.6) ( 18.8) ( 69.4) ( 55.7) ( 75.8)

Gain/(Loss) on sale of fixed assets 11.9 0.0 18.6 28.4 29.8

Gain of sale of interest rate derivatives (CIRR) 0.1 0.1 0.3 0.3 0.4

Gain/(Loss) FX contracts [2] ( 6.5) 7.7 3.6 ( 5.3) ( 7.8)

Net financial items [3] ( 13.9) ( 9.3) ( 30.0) ( 36.1) ( 51.3)

Profit before tax 26.2 23.7 57.4 27.0 18.0

Income tax provision ( 0.9) ( 0.4) ( 2.2) ( 1.8) 3.6

Net Profit (loss) 25.3 23.3 55.2 25.2 21.5

Net profit attributable to non-controlling interest 6.8 0.9 10.0 ( 0.6) ( 0.5)

Net profit attributable to shareholders 18.5 22.4 45.2 25.8 22.0

Earnings per share [4] 0.05 0.06 0.12 0.07 0.06

Average number of shares outstanding [5] 387 591 387 591 387 591 389 578 389 078

[1] Operating revenue less operating expenses

[2] Revaluation of off-balance sheet currency contracts entered into in order to hedge both operating expenditures and future yard instalments in

foreign currencies.

[3] Including revaluation of non-USD currency balance sheet items and mark-to-market effects on interest rate derivatives

[4] Net profit / Average number of shares outstanding (diluted)

[5] Weighted average number of shares outstanding (diluted) ('000) 7

Adjusted Net Profit

Third Quarter Nine Months Ended

Amounts in USD million

2014

Unaudited

2013

Unaudited

2014

Unaudited

2013

Unaudited

2013

Audited

Net Profit (loss) 25.3 23.3 55.2 25.2 21.5

Unrealized (profit) loss on currency derivatives 6.0 (5.2) 0.2 13.0 12.2

Unrealized (profit) loss on interest rate derivatives (1.0) (0.4) (0.0) (6.8) (8.4)

Other unrealized (profit) loss on currency positions 0.4 0.3 (7.7) 14.8 17.2

Adjusted Net Profit (loss) 30.7 18.1 47.7 46.2 42.6

• Unrealised profit and loss from currency derivatives relates to financial instruments entered into in

order to hedge operational cash flows and future yard instalments in foreign currencies.

• Unrealised profit and loss from interest rate derivatives relates to mark-to-market valuations of

financial instruments entered into in order to manage interest rate risk.

• Other currency positions includes unrealized profit and loss from balance sheet items

denominated in foreign currencies in subsidiaries.

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Financial Position and Cash Flow

Statement of Financial Position

30.09.2014

Unaudited

30.09.2013

Unaudited

31.12.2013

Audited

Intangible assets 27.0 29.7 29.7

Vessels under construction 170.6 119.2 127.7

Vessels, equipment and capitalized project costs 1 497.0 1 382.5 1 451.4

CIRR loan deposits 36.1 45.8 41.7

Investment in associates and other long-term receivables 27.6 26.7 27.6

Debtors, prepayments and other current assets 353.9 101.3 123.4

Cash and cash equivalents 91.5 135.3 101.2

Total Assets 2 203.7 1 840.5 1 902.7

Total Equity 827.3 796.4 793.9

Borrowings falling due after 1 year 1007.2 835.4 863.1

CIRR loan 36.1 45.8 41.7

Other non-current liabilities 21.5 29.4 30.4

Borrowings falling due within 1 year 233.8 78.5 98.4

Trade creditors and other current liabilities 77.8 55.0 75.2

Total Liabilities 1 376.4 1 044.1 1 108.8

Total Equity and Liabilities 2 203.7 1 840.5 1 902.7

Amounts in USD million

• Current cost of debt approximately 4.5% p.a., including the effect of interest rate derivatives.

• Net interest bearing debt of USD 1,150 million.

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Consolidated Statements of Cash Flows

Cash flow from operations

01.01.2014 -

30.09.2014

Unaudited

01.01.2013 -

30.09.2013

Unaudited

01.01.2013 -

31.12.2013

Audited

Profit before taxes, excluding interest 89.4 49.5 49.2

Interest paid (34.1) (25.0) (32.3)

Depreciation and amortization 69.4 55.7 75.8

Effect of unreal. currency exchange forward contracts 0.2 7.3 12.2

Change in short-term receivable and payables (37.7) (29.0) (17.5)

Taxes paid in the period (4.5) (5.4) (9.8)

Loss (gain) on sale of fixed assets (18.6) (28.4) (29.8)

Other changes (8.6) 1.8 11.2

Net cash flow from operations 55.6 26.5 59.0

Cash flow from investing activities

Investments in fixed assets (432.6) (203.4) (329.4)

Proceeds from sale of fixed assets 76.1 84.1 86.0

Investment in associated companies (11.1) (15.5) (14.4)

Other investment activities 3.4 4.3 5.4

Cash flow from investing activities (364.3) (130.5) (252.4)

Cash flow from financing activities

Buy back of own shares 0.0 (8.7) (8.7)

Dividend payment (6.5) 0.0 0.0

Proceeds from bank overdraft 4.9 1.0 1.0

Contribution from non-controlling interests of consolidated subsidiaries 0.8 0.0 0.7

Proceeds from raising of new long-term borrowing 402.0 245.6 320.3

Repayment of long-term borrowing (103.2) (104.9) (128.8)

Cash flow from financing activities 298.0 132.9 184.4

Effect of exchange rate differences 1.0 (0.6) 3.2

Net change in cash (9.7) 28.3 (5.9)

Cash at bank start of period 101.2 107.1 107.1

Cash at bank end of period 91.5 135.3 101.2

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Scheduled Debt Maturity Profile 4Q 2014 - 2019

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Comments:

1. The graph reflects committed and assumed mortgage debt for all 10 vessels(1) under construction per end of 3Q 14.

2. Gross debt expected to peak in 2016 based on existing financing and estimated financing for vessels under

construction. Included debt repayment in 2015 from potential sale of Siem Daya 1 and Siem Daya 2 as announced.

3. Loan to value at low ratios for balloon instalments of mortgage debt (2015 and 2017), i.e. low refinancing risk.

4. Balloon instalment in 2015 of mortgage debt (6 AHTS vessels) can be postponed to 2018 subject to continued long-

term vessel employment.

5. NOK 600 million (USD 93.0 million) of unsecured bonds with maturity in 2018.

6. NOK 700 million (USD 108.5 million) of unsecured bonds with maturity in 2019.

[1] Only including wholly-owned vessels under construction.

Future Yard Instalments per end 3Q 2014

• The Company has secured

mortgage debt financing for

seven of the ten wholly-owned

vessels currently under

construction.

• The AHTS vessel under

construction by Secunda is not

included in the table.

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Amounts in USD million

Future Yard Instalments 2014 2015 2016 Total

OSRVs 10.0 7.2 0.0 17.2

PSVs 55.0 101.3 82.4 238.7

CLV 3.8 64.6 0.0 68.5

WIV 17.9 71.6 233.3 322.8

Total 86.7 244.7 315.7 647.1

Debt facilities 2014 2015 2016 Total

OSRVs 4.3 4.3 0.0 8.6

PSVs 37.2 55.8 0.0 93.0

CLV 0.0 65.4 0.0 65.4

WIV 8.9 35.8 224.3 269.0

Total 50.4 161.3 224.3 436.0

Comments:

1. The graph reflects; i) future yard instalments for the 10 wholly-owned vessels under construction per end of third

quarter 2014, ii) committed mortgage debt (red), iii) assumed new mortgage debt (green) and iv) financing gap to

be funded by cash from operations/or issue of bonds.

2. Yard instalments for shipbuilding contracts are normally paid with 20% during construction and 80% at delivery,

alternatively 10% during construction and 90% at delivery.

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Total financing gap in the period 3Q

2014-16 of approx. USD 80 million

Assumed new mortgage debt of

approx. USD 130 million

FRN 14/19

Future Yard Instalments and Debt Financing - From 3Q 2014 until year end 2016

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Amrumbank West OWF Baltic 2 OWF Nordsee One Nordsee One OWF

Project

Project phase

Vessel

utilisation

Profit

recognition

Awarded

Installation of 86

submarine cables

providing the inner-array

grid connecting

Installation works

commenced in 2Q 2014.

First installation

campaign completed.

PSV “Siddis Mariner”

ISV “Siem Moxie”

AHTS “Siem Garnet”

3rd Party Vessel

At minimum 25%

completion, no profit

recorded in 3Q14,

envisages the project

completion during 2Q

2015.

Mar, 2012

Consortium EPIC

contract for the 155kV

export cable system

Nordsee One

Planning, preparation and

engineering. Installation

expected in 2Q16.

Utilising the resources

within the Siem Offshore

Group

At minimum 25%

completion, no profit will

be recorded prior to

installation activities,

envisages the project

completion during 2016.

Dec, 2012

Installation of 86

submarine cables

providing the inner-array

grid connecting

Installation works

commenced in 3Q 2014.

PSV “Siddis Mariner”

ISV “Siem Moxie”

AHTS “Siem Garnet”

3rd Party Vessel

At minimum 25%

completion, no profit

recorded in 3Q14,

envisages the project

completion during 2015.

Feb, 2013

Turnkey EPIC package

of the inner array grid

cable system for 54 wind

turbine generators

Planning, preparation

and engineering

expected complete in 1Q

2015

Utilising the resources

within the Siem Offshore

Group

At minimum 25%

completion1), no profit

recorded at this early

stage, project assumed

completed in 1Q 2017

Apr, 2014

Siem Offshore Contractors - Submarine power cable activities by main projects

[1] The project is currently still subject to financial close, whereby Canada-based Northland Power Inc. has acquired a 85% share

of the project company Nordsee One GmbH from the project developer RWE Innogy GmbH on Sep. 04, 2014.

Siem WIS

• The drilling operation on Maersk Gallant for Statoil’s Romeo project is ongoing and the

managed pressure drilling (“MPD”) operation will commence shortly. The latest update

indicates mobilisation of the pressure control device (“PCD”) equipment in October 2014.

• The Gudrun project is currently estimated to commence during first quarter 2015 and the

Valemon project during third quarter 2015.

• Other potential projects are being followed up in the North Sea and the GOM which may

have an impact on the work load in 2015.

• Siem WIS is also currently involved in a client-driven project that may expand the utilisation

of its core technology.

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Vessels in Operation and Shipbuilding Contracts

Employment and Deliveries

Fleet in Operation - Currently 44 Vessels in Operation

18

OSCV AHTS Vessels

Scientific Core Drilling Vessel

# 1

Other

vessels

# 9

# 101)

Vessels in operation

Canadian

fleet

# 63)

1) Incl. two vessels owned by a partner

2) Incl. two 51% owned

3) 50% owned

4) Delivered from yard end June 2014, in operation in July.

5) Delivered from Yard in July 2014.

# 6

Average age of 4 years

Average age of 2 years

Other vessels # 18

Average age of 7 years

PSV (3,600 – 5,100 dwt) # 112)

Installation

support vessel

# 1)

4)

5)

Employment – Vessels in operation

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2014 2015 2016 2017

Vessel Type Ownership 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Siem Sasha PSV 100 %

Siem Sophie PSV 100 %

Siem Louisa PSV 100 %

Siem Hanne PSV 100 %

Siem Carrier PSV 100 %

Siem Supplier PSV 100 %

Hugin Explorer PSV 100 %

Siem Atlas PSV 100%

Siem Giant PSV 100%

Siem Pilot PSV 51%

Siddis Mariner 1) PSV 51%

Siem Marlin OSCV 100%

Siem Stork OSCV 100%

Siem Daya 1 OSCV 100%

Siem Daya 2 OSCV 100%

Siem Spearfish OSCV 100%

Siem Stingray OSCV 100%

Siem Pearl AHTS 100%

Siem Emerald AHTS 100%

Siem Sapphire AHTS 100%

Siem Aquamarine AHTS 100%

Siem Ruby AHTS 100%

Siem Topaz AHTS 100%

Siem Diamond AHTS 100%

Siem Amethyst AHTS 100%

Siem Garnet 2) AHTS 0%

Siem Opal AHTS 0%

Siem Moxie 3) ISV 100%

Total order backlog in % and USD mill. 80%

79 47% 212 31% 136 21% 97

1) Employment for Siddis

Mariner includes firm time

charter for Siem Offshore

Contractors.

2) Employment for Siem

Garnet includes firm time

charter for Siem Offshore

Contractors.

3) The ISV Siem Moxie was

delivered April 2014 and

shall primarily be utilized by

the subsidiary Siem

Offshore Contractors for

cable installation projects

within the offshore wind-

farm segment.

Contract Contract option Spot work Contract with subsidiary

Employment – Vessels in operation (cont.)

2014 2015 2016 2017

Vessel Type Ownership 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Big Orange XVIII WSV 41 %

Joides Resolution SPV 100 %

Burin Sea AHTS 50%

Panuke Sea PSV 50%

Ryan Leet MPSV 50%

Trinity Sea AHTS 50%

Venture Sea AHTS 50%

Scotian Sea MPSV 50%

Total order backlog in % and USD mill. 16

80% 46% 36 1% 0 0% 0

Marati OSRV 100 %

Parnaiba FSV 100 %

Propriá FSV 100 %

Capela FSV 100 %

Siem Piatã FCV 100 %

Siem Pendotiba FCV 100%

Siem Caetes FSP 100%

Siem Carajas FSP 100%

Total order backlog in % and USD mill. 100%

6 90% 19 90% 18 88% 18

Contract Contract option Spot work

20

2014

1Q 2Q 3Q 4Q

2015

1Q 2Q 3Q 4Q

2016

1Q 2Q 3Q 4Q

Vessels under Construction - 11 Vessels to be Delivered Next 3 Years, including one vessel in Secunda

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OSRV, Siem Maragogi

OSRV, Siem Marataizes

PSV DF, Siem Symphony

CLV, Siem Aimery

PSV DF, Siem Pride

PSV DF, ”TBN 1”

PSV DF, ”TBN 2”

PSV DF, ”TBN 3”

WIV, Siem Helix 1

WIV, Siem Helix 2

AHTS vessel, ”TBN” (Note 1)

Note 1) Vessel under construction in the 50% owned entity Secunda.

Employment - Vessels under construction

22

2014 2015 2016 2017

Vessel Type Ownership 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Brazil, Siem Maragogi OSRV 100%

Brazil, Siem Marataizes OSRV 100%

Norway, Siem Symphony PSV 100%

Poland, Siem Aimery CLV 100%

Poland, Siem Pride PSV 100%

Poland, ”TBN 1” PSV 100%

Poland, ”TBN 2” PSV 100%

Poland, ”TBN 3” PSV 100%

Germany, Siem Helix 1 WIV 100%

Germany, Siem Helix 2 WIV 100%

Poland, ”TBN ” (Note 1) AHTS 50%

Under Construction Contract Contract option

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Comments:

• The CLV shall primarily be utilized by the subsidiary Siem Offshore Contractors for cable installation projects within the offshore

wind-farm segment.

• Total firm backlog for vessels under construction at approximately USD 928 million as of end of third quarter 2014.

Contract with subsidiary

Note 1) Vessel under construction in the 50% owned entity Secunda.

Market Outlook

Market Outlook Summary

• The North Sea spot market for the fourth quarter is expected to continue to be

volatile for AHTS vessels.

• The North Sea PSV market was fairly strong for the majority of the third quarter, but

the momentum eased off during the latter stage of the period. The PSV market is

expected to remain soft over the winter period.

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