GANGER ROLF ASA REPORT FOR THE FIRST QUARTER 2012 Comments to the accounts for Ganger Rolf ASA The Group accounts for the first quarter 2012 comprise Ganger Rolf ASA and its subsidiaries (“The Group of companies”) and the Group of companies´ ownership of associates. Comparable figures for the same period in 2011 in brackets. The accounts are unaudited. Highlights 1Q 12: o Net result after tax was NOK 33 million (NOK 92 million) o Earnings per share were NOK 1.00 (NOK 2.70) o Fred. Olsen Windcarrier AS entered into a contract for the construction of three additional crew boats o A subsidiary of Fred. Olsen Windcarrier AS was awarded a contract for the installation of 30 wind turbines and associated equipment at the Riffgat offshore wind farm in German territorial waters o Proposed dividend payment for 2011 NOK 6.00 per share. Financial information Financial key figures (figures in million NOK except for earnings per share) 1Q 12 1Q 11 2011 Operating revenue 0,2 2,1 0,7 EBITDA ‐12,1 ‐10,3 ‐65,5 EBIT ‐12,6 ‐10,9 ‐67,6 Share of results from associates 94,8 116,9 473,7 Net result after tax 33,2 91,5 237,4 Average number of shares outstanding 33 853 935 33 853 935 33 853 935 Basic/diluted earnings per share NOK 1,0 2,7 7,0 Interest bearing liabilities 1 841,2 1 125,0 1 169,5 - 1 - GANGER ROLF ASA The operating result (EBIT) which mainly reflects the holding company costs, was negative with NOK 13 million (negative NOK 11 million). All significant share holdings in associates are accounted for under the equity method. Consequently, the parent company is a pure holding company. Net result from associates accounted for using the equity method, was NOK 95 million (NOK 117 million) in the quarter. The net result comprises share of net results from Fred. Olsen Energy ASA (FOE) of NOK 104 million (NOK 104 million). Fred.Olsen Renewables with subsidiaries of NOK 28 million (NOK 18 million) and the cross ownership contribution from Bonheur ASA of NOK 6 million (NOK 16 million). The cruise activities reported a negative net result of NOK 21 million (negative NOK 4 million). First Olsen Ltd (tankers and Windcarrier) had a negative result of NOK 34 million (negative NOK 20 million) and Fred. Olsen Production ASA (FOP) with positive NOK 1 million (negative NOK 2 million). Net financial items in the quarter were negative NOK 24 million (negative NOK 30 million). Net result before tax in the quarter was NOK 58 million (NOK 77 million). Net result after estimated tax was NOK 33 million (NOK 92 million). Business segments The Group of companies’ results for the individual business segments are included in Note 2. In the following, it is referred to the Group of companies’ consolidated business segments presented on 100% basis. Ganger Rolf ASA and Bonheur ASA have an ownership of 50% each in these segments unless otherwise indicated. Due to intra group eliminations, the figures are not necessarily identical with each individual company’s separate accounts. Offshore Drilling The segment consists of 26.9% ownership of Fred. Olsen Energy ASA with subsidiaries (FOE). Figures below inclusive intragroup eliminations: (Figures in NOK million) 1Q 12 1Q 11 Operating revenues 1 606 1 479 EBITDA 844 763 EBIT 515 456 Net result 378 381 Extract from FOE’s report for the first quarter 2012 (figures in NOK unless otherwise stated). Note that FOE shows fourth quarter 2011 in brackets, while Bonheur ASA compares with first quarter 2011. Figures below are exclusive of intragroup eliminations: - 2 - GANGER ROLF ASA For full report please refer to www.fredolsen-energy.no (Figures in NOK million) 1Q 12 4Q 11 1Q 11 Operating revenues 1 606 1 682 1 479 EBITDA 844 889 763 EBIT 506 542 447 Net result 369 530 372 “FINANCIAL INFORMATION (4th quarter 2011 in brackets) Operating revenues in the quarter were 1,606 million (1,682 million), a decrease of 75 million compared with the previous quarter. Revenues from the offshore drilling division were 1,540 million (1,638 million), a decrease of 98 million. Revenues from the engineering and fabrication division were 67 million (44 million), an increase of 23 million. The decrease in revenues within the offshore drilling division is mainly due to Borgsten Dolphin being idle most of the quarter, Blackford Dolphin operating on a lower dayrate and Belford Dolphin commencing new contract at lower dayrate, partly offset by reduced downtime for Bredford Dolphin in the quarter. Operating costs were 762 million (793 million), a decrease of 31 million compared with previous quarter. Operating costs within the offshore drilling division decreased by 54 million, partly offset by an increase in operating cost within the engineering and fabrication division of 23 million. The decrease in operating costs within the offshore drilling division is mainly due to a lower repair and maintenance level in first quarter compared with previous quarter. Operating profit before depreciation (EBITDA) was 844 million (889 million). EBITDA within the offshore drilling division decreased by 45 million to 842 million (887 million), and EBITDA within engineering and fabrication division was 2 million, which is in line with previous quarter. Depreciation, amortisation and impairment amounted to 338 million (347 million). Operating profit after depreciation (EBIT) was 506 million (542 million). Net financial expenses were 110 million (26 million). Capitalized interest expenses related to the newbuild drillship in the quarter amounted to 9 million (8 million). Profit before tax was 395 million (516 million). Net profit, including an estimated tax charge of 27 million (positive 15 million), was 369 million (530 million). Earnings per share were 5.6 (8.0). The Board has proposed to the Annual General Meeting on 24th May 2012 an ordinary dividend payment of NOK 10 per share and an extraordinary dividend of NOK 10 per share. Subject to approval, the shares will be quoted ex. dividend from 25th May 2012. Estimated date of payment of dividend is 20th June 2012. A Settlement Agreement has been entered into between the shipyard Keppel Verolme BV and Blackford Dolphin Pte. Ltd., a wholly owned subsidiary of Fred. Olsen Energy ASA, on the costs for the reconstruction and upgrading of the semi-submersible Aker H-3 drilling rig Blackford Dolphin.” Floating Production The segment consists of 31.13% ownership of Fred. Olsen Production ASA with subsidiaries (FOP). - 3 - GANGER ROLF ASA (Figures in NOK million) 1Q 12 1Q 11 Operating revenues 156 155 EBITDA 60 59 EBIT 19 16 Net result 2 -4 Extract from FOP’s report for the first quarter 2012. For full report please refer to www.fpso.no “Financial information Comparable figures for the corresponding period in 2011 are in brackets below. Revenues in the quarter were USD 26.9 million (USD 27.1 million). Total operating expenses were USD 16.6 million (USD 16.7 million). After depreciation of USD 7.1 million (USD 7.7 million) the 1st quarter operating profit (EBIT) was USD 3.2 million (USD 2.6 million). Net financial expenses were USD 1.1 million (USD 1.2 million). Profit before tax was USD 2.1 million (USD 1.5 million) in the quarter. Profit after tax was USD 0.3 million (loss USD 0.8 million) in the 1st quarter of 2012. Market Outlook The total market demand for FPSOs has improved compared to the lows of 2008/2009, driven by the need for development of new fields in remote areas or deep water, but the number of lease projects remains below market expectations. Inquiry flow for mid-range projects remains high in Asia, with most activity in Vietnam, Malaysia and Indonesia. Few projects have materialized in West Africa during the last year, with the exception of high-end (turnkey) projects – and few are forecast in the coming 12 months, as the smaller projects suffer continued delays due to political, regulatory and financing issues. Brazil maintains a steady stream of new project inquiries, though the largest local consortium projects are being prioritized ahead of the smaller international tenders. Fred. Olsen Production ASA and its partner Marubeni Corporation continue discussions with PetroVietnam Technical Services Corporation, Vietnam for the delivery of an FPSO for the Thang Long & Dong Do oil fields offshore Vietnam. The first quarter 2012 was quiet in terms of new contract awards: only 3 FPSO contracts were awarded (excluding 4 hull only conversions in Brazil): 2 lease (both redeployments) and 1 turnkey or EPC. “ Renewable energy Renewable Energy consists of 50% ownership of Fred. Olsen Renewables AS with subsidiaries (FOR). (Figures in NOK million) 1Q 12 1Q 11 Operating revenues 183 143 EBITDA 135 105 EBIT 87 57 Net result 55 37 FOR owns and operates four wind farms in Scotland (Crystal Rig, Crystal Rig II, Rothes and Paul’s Hill) and two in Sweden (Kristinetorp and Kiaby). At the end of 1st quarter, the company had an installed - 4 - GANGER ROLF ASA capacity of 323 MW in production. In addition FOR has a portfolio onshore of development projects in UK, Norway, Sweden and Canada. Operating revenues in the quarter were NOK 183 million (NOK 143 million). Generation increased from 203 GWh to 277 GWh compared with the same quarter last year. The increase is caused by higher wind speed compared to 1st quarter 2011. EBITDA was NOK 135 million (NOK 105 million). Cruise Cruise consists of 50% indirect ownership of Fred. Olsen Cruise Lines Ltd, with subsidiaries (FOCL), located in Ipswich UK. (Figures in NOK million) 1Q 12 1Q 11 Operating revenues 448 440 EBITDA 30 36 EBIT -24 -18 Net result -41 -8 FOCL owns and operates four cruise ships, MV Black Watch, MV Braemar, MV Boudicca, and MV Balmoral.