Fred. Olsen Energy 9/4/2002

Fred. Olsen Energy ASA 2002

COMPANY PRESENTATION

4th September 2002

Fred. Olsen Energy 9/4/2002

Fred. Olsen Energy ASA 2002

INTEGRATED OFFSHORE PROVIDER

Drilling, WellServices &

Subsea Services

FloatingProduction

Engineeringand

Fabrication

Fred. Olsen Energy ASA

FRED. OLSEN PRODUCTION

DOLPHIN AS

DOLPHIN DRILLING LTD.

HARLAND & WOLFF (92.2%)

TITANIC QUARTER

TITANIC PROPERTIES

Fred. Olsen Energy 9/4/2002

Fred. Olsen Energy ASA 2002

OWNERSHIP STRUCTURE

dfdsfdsBonheur ASA

Ganger Rolf ASAAS Borgå

60 %

Fred. Olsen Energy ASA

FOE5 % Institutional &

private investors

35 %

• Enterprise Value: NOK 5,2 bn• Market cap. of equity: NOK 1,0 bn• 3,900 shareholders

Fred. Olsen Energy 9/4/2002

Fred. Olsen Energy ASA 2002

REVENUES & EBITDA 1H 20021324

164

489562

9212

0

200

400

600

800

1000

1200

1400

Offshore drilling Floating production Eng. & Fabr.

Revenues EBITDA

Fred. Olsen Energy 9/4/2002

Fred. Olsen Energy ASA 2002

Fred. Olsen Energy ASA EBITDA & EBIT

(excludes exceptional items)

-50

50

150

250

350

450

EBITDA 194 168 183 201 167 214 227 278 137 144 248 198 344 347 356 389 278

EBIT 112 90 103 109 58 79 94 112 -30 -22 63 -2 119 106 121 156 47

2Q 98 3Q 98 4Q 98 1Q 99 2Q 99 3Q 99 4Q 99 1Q 00 2Q 00 3Q 00 4Q 00 1Q 01 2Q 01 3Q 01 4Q 01 1Q 02 2Q 02

Fred. Olsen Energy 9/4/2002

Fred. Olsen Energy ASA 2002

DEBT PROFILE

• Interest bearing debt:NOK 5.4 bn (USD 720 mill)

• 7 year repayment profile• Average maturity 4 years• Net debt: USD 560 mill

0

100

200

300

400

500

600

700

800

2002 2003 2004 2005 2006 2007 2008

USD mill

Fred. Olsen Energy 9/4/2002

Fred. Olsen Energy ASA 2002

CURRENT STATUS

• 2 rigs + floating production secures underlying cashflow

• Significant spot market exposure

• Incentives needed for North Sea market, few triggers for 2003

• Focus on drilling tenders outside North Sea

• Compact Yard strategy at H&W

BidefordBideford

BorgilaBorgila

ByfordByford

BorglandBorgland

BorgnyBorgny

BorgstenBorgsten

BredfordBredford

StatoilStatoil

StatoilStatoil Undefined Undefined OptionOption

AHAH

NorskNorsk HydroHydro

NorskNorsk HydroHydro

20012001 20022002 20032003 20042004 20052005 20062006 20072007

BelfordBelford PetrobrasPetrobras

BulfordBulford = upgrading period

= option

= firm

K. McGeeK. McGee

SPSSPS

SPSSPS

Frame Agreement (1 year notice)Frame Agreement (1 year notice)

KMGKMG

TOWTOW

Rig Contracts Rig Contracts (04.09.02)(04.09.02)

KMGKMG

EnCanaEnCana

Nim.Nim.//CopCop..

BorgholmBorgholm Purchased Purchased Oct. 01Oct. 01

KMGKMG

BPBP

Fred. Olsen Energy 9/4/2002

Fred. Olsen Energy ASA 2002

SPOT MARKET EXPOSURE

• 1 drillship

• 5 drilling semis

• 2 accomodation/ tender semis

• 1 jack-up

Fred. Olsen Energy 9/4/2002

Fred. Olsen Energy ASA 2002

Belford

• Completed contract for KerrMcGee in Brazil

• Being marketed in i.a. GoM, Brazil, Canada, Faroes

Fred. Olsen Energy 9/4/2002

Fred. Olsen Energy ASA 2002

Byford, Borgsten, Borgny, Bulford

• In lay-up in Invergordon, Belfast

• Being marketed for contracts in i.a. Mexico, UK, Mediterrenean

Fred. Olsen Energy 9/4/2002

Fred. Olsen Energy ASA 2002

Bredford

• Completed work for Nimirin Tunisia

• Being marketed for contracts primarily in Mediterranean area

Fred. Olsen Energy 9/4/2002

Fred. Olsen Energy ASA 2002

Borgholm

• Upgrading completed in Ølen, Norway

• Accomodation market in GoM

• Capacity: 600 beds

Fred. Olsen Energy 9/4/2002

Fred. Olsen Energy ASA 2002

Borgila

• Frame agreement withHydro 2008, subject to requirement

• Present drilling programmecompleted Oct 2002

• Borgila (or substitute) has priority for well maintenance

• Alternative: GoM/accommodation market

Fred. Olsen Energy 9/4/2002

Fred. Olsen Energy ASA 2002

SPOT MARKET CHALLENGES

• Secure continuing employment

• Selective cold-stacking of rigs

• Focus on marketing & costs

• Alliances/integrated services

• Market driven consolidation opportunities

Fred. Olsen Energy 9/4/2002

Fred. Olsen Energy ASA 2002

FLOATING PRODUCTION

Fred. Olsen Energy 9/4/2002

Fred. Olsen Energy ASA 2002

PETRÒLEO NAUTIPA

• 5-year contract, 2 year firm

• Start-up Gabon earlySeptember

• T/C dayrate ca. USD 40,000; tariff element

Customer: Vaalco Energy Inc

Fred. Olsen Energy 9/4/2002

Fred. Olsen Energy ASA 2002

KNOCK TAGGART DOUBLED CAPACITY

Production start Jun 02

Risør construction siteDec 01–Apr 02

Fred. Olsen Energy 9/4/2002

Fred. Olsen Energy ASA 2002

FPSO KNOCK TAGGART• Production capacity increased to 60,000• FPSO kept on location; less than a week

production down-time• Dayrate increased to USD 65,000

Fred. Olsen Energy 9/4/2002

Fred. Olsen Energy ASA 2002

HARLAND & WOLFF RESTRUCTURING

Compact Yard• Close down main steel fabrication activities• Focus on:

• Engineering, ship repair, outfitting and conversions• Current employement = approx 500• Completion of RoRo’s Q4 2002 and Q1 2003• Significant challenge to ensure adequate work under

Compact Yard Strategy

Fred. Olsen Energy 9/4/2002

Fred. Olsen Energy ASA 2002

PROPERTY DEVELOPMENT

Titanic Quarter

• 180 acres (800 mål) - 50% • shared with Belfast Harbour Commision

• 60 Acres (light industrial development) withlocal business employing 550 people

Fred. Olsen Energy 9/4/2002

Fred. Olsen Energy ASA 2002

TITANIC QUARTERS

Fred. Olsen Energy 9/4/2002

Fred. Olsen Energy ASA 2002

SUMMARY

Underlying cash flow secured by Bideford, Borgland and floating production

Significant spot market exposure

Focus on marketing and costs

Market driven consolidation opportunities