Q2 2016 Presentation Contents

• Highlights and material events

• Segment reporting

• Financial information

• Summary

Page 2 Group – Financial performance

Q2 2016 highlights:

• Operating revenue of USD 183 million

• EBITDA of USD 73 million

• EBITDA margin of 40%

• EBIT of USD 31 million

• Net profit of USD 9 million

Page 3

Highlights and material events in/after Q2 2016

Refinancing of Deepsea Atlantic and Deepsea Stavanger • Odfjell Drilling received on 24 August 2016 a firm offer from its bank syndicate to refinance the senior secured term loan facility secured by the rigs Deepsea Atlantic and Deepsea Stavanger maturing in November 2016. • The new loan facility will be USD 525 million, the same amount as was outstanding under the existing facility as at 30 June 2016, and will be repaid by quarterly installments of USD 12.5 million, first time in Q1 2017: – No repayment in H2 2016 – Quarterly installment reduction of USD 12.5 million compared to the current facility – Margin of 415 basis points above LIBOR – 3 year tenor from drawdown scheduled for September 2016 • Odfjell Drilling has also agreed with its lenders to amend the following financial covenants across all its credit facilities: – Leverage ratio (net debt to ebitda) of maximum 6.0x through 2016, maximum 5.5x through 2017 and maximum 5.0x thereafter – Equity ratio (book equity to total assets) of minimum 30% • In addition, Odfjell Drilling Services Ltd. has agreed with its lenders to amend its financial covenants by replacing the leverage ratio covenant applicable to the Odfjell Drilling Services group with a debt service coverage ratio (ebitda to debt service) of minimum 1.1x.

Page 4

Highlights and material events in/after Q2 2016 (cont.)

Impairment write-down of Deepsea Atlantic and Deepsea Stavanger as at 30 September 2015 • Following the enforcement decision by the Financial Supervisory Authority of Norway received on 24 May 2016, the mobile drilling units “Deepsea Atlantic” and “Deepsea Stavanger” have been written-down as at 30 September 2015 in the total amount of USD 158.5 million. All relevant figures have been restated from 30 September 2015 and in subsequent quarters.

MODU • Deepsea Stavanger − Deepsea Stavanger commenced on the one well contract with JX Nippon west of Shetland (UK) on 10 May 2016 and it was completed on 8 July 2016. − The rig is currently awaiting commencement on the Wintershall contract on the Maria field in Q1 2017. • Deepsea Metro I − Deepsea Metro I commenced the one firm well plus four optional wells contract with Petronas offshore Malaysia on 17 July 2016.

Page 5

Highlights and material events in/after Q2 2016 (cont.)

Drilling & Technology • Odfjell Drilling’s platform portfolio for Statoil will be reduced from 1 October 2016 following Statoil’s decision not to declare optional contract periods for five of the platforms. • Odfjell Drilling will transfer approximately 300 employees (the majority being offshore crews) to the contractor taking over the operations on the five platforms. • Statoil has declared the 2 years option for the Heidrun and Grane platforms. • Odfjell Drilling will commence operations on the Johan Sverdrup platform in Norway and the Mariner platform in UK for Statoil when these come into drilling operation during 2018.

Well Services • Odfjell Drilling’s Well Services division re-entered the Iranian market with its first operations commenced in early July 2016.

Page 6

Mobile Offshore drilling Units (MODU) - Strong operations with high utilization

Q2 2016 Financial Utilization MODU

Financial Utilization1 Q2 16 Q2 15 YTD 16 YTD 15 FY 15 Deepsea Stavanger 99,7 % 99,7 % 99,7 % 99,4 % 98.8% Deepsea Atlantic 99,9 % 98,8 % 99,7 % 98,9 % 99.0% Deepsea Bergen 98,7 % 94,3 % 96,8 % 92,2 % 83.9% Deepsea Aberdeen 99,7 % 96,7 % 98,2 % 96,7 % 97.2% • Modern fleet of harsh environment drilling / UDW units 2) Deepsea Stavanger commenced its contract with JX Nippon west of Shetland on 10 May 2016 after being idle since November 2015. • Extensive drilling experience 3) Deepsea Atlantic commenced its Statoil contract on the Johan Sverdrup field 1 March • Provision of integrated 2016 after being idle since August 2015. management services for drilling units 4) Deepsea Bergen was operating for Statoil on the NCS for the first half of 2016. 5) Deepsea Aberdeen was operating for BP West of Shetland for the first half of 2016.

1) Financial Utilisation is measured on a monthly basis and comprises the actual recognised revenue for all hours in a month, expressed as a percentage of the full day rate for all hours in a month. Financial Utilization, by definition, does not take into account periods of non-utilisation when the units are not under contract.

Page 7 Mobile Offshore drilling Units (MODU) - Contract status and day rates

Location day rate Drilling unit Contract status /operator (USDk/day)1

Deepsea Norway - 275/305/365 Stavanger Wintershall

Deepsea Norway 6 X 6 months 300/330-425 Atlantic Statoil

Deepsea UK 450 Aberdeen BP Exploration

Deepsea Norway 325 Bergen Statoil

2016 2017 2018 2019 2020 2021 2022 2023 2024

Contract Option

Firm MODU contract backlog at 30 June 2016 of USD 1.5 billion with additional priced options valued at USD 0.6 billion

1) Rates may include mix of currencies and fluctuate based on exchange rates.

Page 8 Platform Drilling and Technology - Portfolio secured by medium to long-term contracts

Platform Drilling and Technology Drilling & Technology

• One of the leading contractors in the North Sea platform drilling market • Drilling engineering services • Established competence for the latest generation technology

Firm contract backlog of USD 0.3 billion at 30 June 2016 Value of priced optional periods of USD 0.6 billion

1) In addition, Njord, Sleipner A, Visund, Snorre A and Snorre B until 1 October 2016 2) Clair, Andrew, Bruce, Magnus, Clair Ridge

Page 9 Well Services - Pricing pressure offset by cost efficiency measures

BASES : EUROPE

Norway

United Kingdom Key figures Holland

• ~400 employees Romania

• Services from 12 bases

• Operations in more than 20 countries

BASES : ASIA Service offering Thailand

• Tubular running services Vietnam

• Drill tool rental services BASES : MIDDLE EAST Saudi Arabia

• Well intervention services United Arab Emirates

Turkmenistan

Kurdistan

BASE Iran OPERATIONS

A leader in remote operated drilling technologies

Page 10 Earnings visibility through USD 3.0 billion order backlog

Total revenue backlog per year1

USD million Firm Options Firm contracts USD 1.8 billion

Priced options USD 1.2 billion 1 000

Total backlog USD 3.0 billion 833 800

600 554 540 600 73 99 461 419 400 239 213 243 - 481 200 441

243 222 206 233

-

2H 2016 2017 2018 2019 2020 After

• Revenue backlog for Well Services, Technology and MODU Management is not included in the revenue backlog above.

1) Estimates at 30 June 2016

Page 11 Market outlook

MODU • The drilling and oil service market remains weak and we do not see any signs of improvement near term. The soft market is due to the substantial supply of newbuilds, especially in the UDW market. At the same time, oil companies still focus on cost cutting programs and capital spending reductions which have further reduced demand for drilling capacity.

The results are an increasing number of stacked units and continued downward pressure on day rates and asset values.

• Within the next few years we believe the continued scrapping of older rigs in combination with required exploration and development drilling will bring the market back to balance and subsequent improved day rates.

• Odfjell Drilling has a fleet of 6th generation units capable of working in both ultra deep waters and harsh environments providing operational and geographical flexibility.

• Deepsea Stavanger is currently idle after the completion of its JX Nippon contract on 8 July 2016. The rig is expected to commence its new drilling contract for Wintershall on the Maria field in Q1 2017. We are following leads for potential work for Deepsea Stavanger prior to the Wintershall contract. Deepsea Aberdeen is contracted until 2022 for BP West of Shetland, Deepsea Atlantic is contracted to Statoil until 2019 on the Johan Sverdrup field and Deepsea Bergen has a contract for Statoil ending mid-2017.

Well Services • Well Services has faced increased competition and price pressure for its services globally but has been able to partly compensate for the price pressure and lower volumes through cost reduction initiatives and increased efficiency. Well Services has further reduced its capital expenditures to enhance utilization of the equipment base. Well Services has continued its growth within well intervention services.

Page 12 Market outlook (cont.)

Platform Drilling and Technology • The slowdown in the North Sea activity level has led to continued low activity level for development and upgrade projects. To meet this challenge the Group has continued its work to increase efficiency and reduce its cost base.

Group measures implemented to stay competitive • The Group has reduced the cost level substantially throughout the organisation to be in a better position to compete in the current market environment.

General, longer-term • In the longer term, we are of the opinion that the oil industry’s demand for drilling services will continue to be supported by the need for replacement of reserves and by continued spending on exploration and field-development in the main offshore regions. The Group’s business segments are positioned for taking advantage of the future market improvements.

Page 13 Financial information

Financial performance highlights

Odfjell Drilling reports for Q2 2016: Group Operating Revenues (USDm)

• Operating revenue of USD 183 million 1 088 927 • EBITDA of USD 73 million 526

341 • EBITDA margin of 40% 286 183 • EBIT of USD 31 million Q2 16 Q2 15 YTD 16 YTD 15 FY 15* FY 14 • Net profit of USD 9 million

Group EBITDA (USDm)

272

117 73 78

-82 -155 Q2 16 Q2 15 YTD 16 YTD 15 FY 15* FY 14

* Restated 2015 figures

Page 15 Group summary financials

Condensed consolidated income statement

Restated P&L - (USD million) Q2 16 Q2 15 YTD 16 YTD 15 FY 15 Operating revenue 183 286 341 526 927 Other gains/losses 0 1 0 1 0 Share of profit/(loss) from Deep Sea Metro Ltd Group - -264 0 -277 -269 Personnel expenses -73 -123 -145 -230 -382 Other operating expenses -38 -54 -79 -102 -197 EBITDA 73 -155 117 -82 78 Depreciation -41 -47 -81 -84 -321 Operating profit (EBIT) 31 -202 36 -166 -242 Share of profit (loss) from other joint ventures 1 -1 1 -3 -28 Net financial items -20 -13 -38 -24 -64 Profit/(loss) before tax 13 -216 -1 -193 -335 Income taxes -4 -8 -9 -14 16 Profit/(loss) for the period 9 -224 -10 -206 -319

Page 16 Segment reporting - MODU financials

MODU Key Financials (USD million)

Restated Revenues 621 Condensed P&L - (USD million) Q2 16 Q2 15 YTD 16 YTD 15 FY 15 Operating revenue 122 202 220 353 621 EBITDA 65 100 103 177 300 Depreciation and impairments -33 -37 -64 -64 -281 353 EBIT 32 63 39 113 19 220 202

Book value rigs 1 949 2 161 1 949 2 161 2 159 122

EBITDA-margin 53,1 % 49,4 % 46,7 % 50,0 % 48,4 % Q2 16 Q2 15 YTD 16 YTD 15 FY 15* EBIT-margin 26,1 % 31,0 % 17,5 % 31,9 % 3,1 % Share of group revenue 1 64,7 % 69,6 % 62,4 % 66,0 % 64,9 % Share of group EBITDA1 85,4 % 88,3 % 83,6 % 87,1 % 83,5 % 1 EBITDA Share of group EBIT 95,6 % 95,9 % 97,6 % 95,3 % 50,4 % 300 1) Before group eliminations and corporate overheads

177

100 103 65 Figures above do not include pro-rata 40% of Deep Sea Metro.

Q2 16 Q2 15 YTD 16 YTD 15 FY 15*

* Restated 2015 figures

Page 17 Segment reporting - Drilling & Technology financials

Drilling and Technology Key Financials (USD million)

Condensed P&L - (USD million) Q2 16 Q2 15 YTD 16 YTD 15 FY 15 Revenues Operating revenue 37 51 75 105 197 197 EBITDA -0 -3 -1 -6 4 Depreciation and impairments -1 -2 -3 -3 -5

EBIT -2 -5 -3 -9 -1 105

75

EBITDA-margin -0,6 % -5,5 % -1,2 % -5,5 % 2,2 % 51 37 EBIT-margin -4,1 % -9,4 % -4,6 % -8,5 % -0,4 % Share of group revenue1 19,7 % 17,4 % 21,3 % 19,5 % 20,6 % Q2 16 Q2 15 YTD 16 YTD 15 FY 15 Share of group EBITDA1 -0,3 % -2,4 % -0,8 % -2,9 % 1,2 % Share of group EBIT1 -4,6 % -7,2 % -8,8 % -7,5 % -2,0 % EBITDA 4 1) Before group eliminations and corporate overheads

-0 -1

-3

-6

Q2 16 Q2 15 YTD 16 YTD 15 FY 15

Page 18 Segment reporting - Well Services financials

Well Services Key Financials (USD million)

Condensed P&L - (USD million) Q2 16 Q2 15 YTD 16 YTD 15 FY 15 Revenues 138 Operating revenue 29 38 58 78 138 EBITDA 11 16 21 32 55 Depreciation and impairments -8 -9 -17 -18 -35 EBIT 3 7 4 14 20 78 58

Book value of equipment 117 141 117 141 129 38 29 Cost price for equipment in use 377 388 377 388 372

EBITDA-margin 38,6 % 42,2 % 36,7 % 41,3 % 39,6 % Q2 16 Q2 15 YTD 16 YTD 15 FY 15 EBIT-margin 10,2 % 19,5 % 7,7 % 18,6 % 14,3 % EBITDA Share of group revenue1 15,5 % 13,1 % 16,3 % 14,5 % 14,5 % 55 Share of group EBITDA1 14,9 % 14,2 % 17,2 % 15,8 % 15,2 % Share of group EBIT1 9,0 % 11,3 % 11,2 % 12,2 % 51,7 % 1) Before group eliminations and corporate overheads 32

21 16 11

Q2 16 Q2 15 YTD 16 YTD 15 FY 15

Page 19 Group - Eliminations & Reconciliation

Group – Eliminations & Reconciliation

Restated (USD million) Q2 16 Q2 15 YTD 16 YTD 15 FY 15 Operating revenue -5 -5 -12 -9 -29 EBITDA -3 -268 -6 -285 -281 EBIT -2 -267 -4 -284 -281

EBIT for reportable segments 33 65 40 118 38 Corporate / eliminations -2 -4 -7 -8 -14 Share of profit from DSM Ltd Group 0 -264 0 -277 -269 Accounting differences -0 0 3 1 2 Group EBIT 31 -202 36 -166 -242 Share of profit from other joint ventures 1 -1 1 -3 -28 Net financial items -20 -13 -38 -24 -64 Group profit before tax 13 -216 -1 -193 -335

Page 20 Summary statement of financial position

Group statement of financial position Restated Restated Assets (USDm) 30.06.16 30.06.15 31.12.15 Equity and liabilities (USDm) 30.06.16 30.06.15 31.12.15 Deferred tax asset 6 8 Total paid-in capital 329 329 329 Intangible assets 35 38 34 Other equity 454 571 463 Property, plant and equipment 2 069 2 307 2 131 Total equity 783 900 792 Financial fixed assets 9 40 15 Total non-current assets 2 119 2 385 2 189 Borrowings 483 1 467 879 Post-employment benefits 37 67 43 Trade receivables 144 230 178 Deferred tax liability - 4 Other current assets 25 25 48 Other non-current liabilities 6 15 4 Cash and cash equivalents 166 212 202 Total non-current liabilities 526 1 552 925 Total current assets 335 467 428 Borrowings 997 240 718 Total assets 2 453 2 852 2 617 Trade payables 27 30 25 • Group’s gross interest bearing debt was USD 1,480 million (net Other current liabilities 121 131 157 of capitalized financing fees) at 30 June 2016. Total current liabilities 1 144 401 900 • USD 166 million in cash and cash equivalents at 30 June 2016. Total liabilities 1 670 1 952 1 825 • Equity-ratio of 32% at 30 June 2016.

• The debt facility for Deepsea Atlantic and Deepsea Stavanger, Total equity and liabilities 2 453 2 852 2 617 with an outstanding amount of USD 525 million at 30 June 2016, is classified as short–term debt. A firm offer to refinance this debt was received on 24 August 2016. • Odfjell Drilling Services Ltd. was on 15 August 2016 granted a waiver by the lenders for its non-compliance with the leverage ratio covenant as at 30 June 2016. The leverage ratio covenant will be replaced by a debt service coverage covenant hereafter. USD 326 million has in the interim been reclassified as short term debt as at 30 June 2016.

Page 21 Summary statement of cash flow

Group statement of cash flow

Restated Cash Flow - (USDm) Q2 16 Q2 15 YTD 16 YTD 15 FY 15 Profit before income tax 13 -216 -1 -193 -335 Cash from operations 55 87 103 160 375 Interest paid -18 -19 -31 -35 -69 Income tax paid -5 -12 21 -23 -34 Net cash from operations 32 56 92 102 271

Net cash used in investing activities -7 -18 -12 -80 -148

Net cash from financing activities -81 -77 -119 -3 -115

Net change in cash and cash equivalents -56 -39 -39 19 9 Cash and cash equivalents at period end 166 212 166 212 202

Page 22 Summary Q2 2016

• Secured long term refinancing of Deepsea Atlantic and Deepsea Stavanger

• Earnings visibility through USD 3.0 billion order backlog

• MODU: - Continued strong operational performance - Fleet secured by medium- to long-term contract

• Drilling & Technology: - Reduced engineering capacity to increase utilization and reduce cost - Remaining platform portfolio secured by medium- to long-term contracts

• Well Services: - Pricing pressure offset by cost efficiency measures

• Book equity ratio of 32% and cash position of USD 166 million at 30 June 2016

Page 23

President & CEO Simen Lieungh

EVP & CFO Atle Sæbø

Investor relations Eirik Knudsen, [email protected] +47 55 92 10 44/ +47 934 59 173

Next event: Q3 2016 results to be published 23 November 2016

For more information see: www.odfjelldrilling.com