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2016-11-18

Deep Sea Supply : Financial Report and Presentation 3Q 2016

3Q Highlights

* Consolidated revenues of MUSD 10.2 and EBITDA of MUSD 7.3
* Pre-tax profit was negative MUSD 8.0
* Closed the roll-up of DESS BTG with a gain of MUSD 7.4 (included in "Other
gains")
* Closed the refinancing of debt facilities

* DESS Aquaculture Shipping AS entered into shipbuilding contracts for two
vessels firm with options for four more vessels
* Secured new contracts for 1 AHTS and 1 PSV

Subsequent events

* Contracts extensions for 2 PSVs in Australia

Comparing 3Q 2016 financial figures with 2Q 2016, revenues decreased by MUSD
1.4. The main reason for this was lower utilization and lower rates. The
vessels' operating expenses increased with MUSD 0.7 from 2Q 2016 to 3Q 2016,
due to more vessel days being included in the financials following the
roll-up of DESS BTG and one-off dismissal costs for Brazilian seafarers
following the completion of four contracts in Brazil.

During the third quarter of 2016 the oil price has remained low and there are
still few signs of improvement of the fundamentals of the global OSV markets.
The Company therefore expects no improvement of the difficult market
situation for OSVs in the short to medium term. The contract coverage for the
Company is not satisfactory, but DESS is currently in advanced contract
negotiations for some term opportunities and expects the coverage for 2017 to
increase somewhat going forward.

As a consequence of the weak market, Deep Sea Supply has laid up in total 20
vessels. In addition to laying up vessels to reduce cost, the Company is
working hard to further reduce operating expenses for the vessels in
operation.

The board is actively considering alternative use of the fleet, this includes
use of vessels for acquaculture shipping as well for other sectors.

Through the roll-up of DESS BTG and the refinancing agreements with the
lenders, the Company expects to have sufficient liquidity also in a
challenging 2017. The board is considering various strategic alternatives,
including consolidation.

Limassol, 18 November 2016
Deep Sea Supply Plc

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

DESSC 3Q 2016 Financial Report
http://hugin.info/136132/R/2057857/771138.pdf
DESSC 3Q 2016 Presentation
http://hugin.info/136132/R/2057857/771137.pdf

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This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Deep Sea Supply via Globenewswire

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