Osv Outlook Clarksons

Overview of the

Offshore Supply Vessel Industry

May 2012

1

Contents

Macro Drivers to Offshore Support Vessel Demand Growth

Offshore Support Vessel Industry - Overview

Fleet Development and Age Profile

Orderbook and Deliveries

Demolition (Scrapping)

Asset Values

OSV to Rig ratio

Regional Outlook

US GoM

Latin America

West Africa

Middle East

North Sea

Asia Pacific

Market Outlook

Disclaimer

2

Offshore Support Vessel Demand - Macro Drivers

3

Macro Drivers prompting Offshore Support Vessel Demand

Oil Consumption vs. GDP Growth

% growth

Source: IMF, World Economic Outlook (Aprill 2012)

Robust OSV Demand Increasing Offshore

activity as onshore fields mature

High E&P Capex High Energy demand & Oil prices

WTI Crude Oil Prices

Source: Bloomberg, EIA - Short Term Energy Outlook (March 2012)

US$ /bbl

20

40

60

80

100

120

140

160

Jan-

05

Jan-

06

Jan-

07

Jan-

08

Jan-

09

Jan-

10

Jan-

11

Jan-

12

Jan-

13

-3%

-2%

0%

2%

3%

5%

6%

2005

2006

2007

2008

2009

2010

2011

2012

E

2013

E

GDP Growth Oil Demand Growth

4

5,000 25,000 45,000 65,000

Petrochina

Exxon Mobil

Royal Dutch/Shell

Chevron Corp.

Petrobras

BP plc

Pemex

Eni Spa

ConocoPhillips

Petronas

2012E

2011

E&P Spend by Major Oil and Gas Companies

Top 10 Global E&P Spenders

Source: Company filings, Clarkson Capital Markets

US$ million

Top 10 E&P spenders globally accounted for nearly 44% of the total E&P spending in 2011

All of them are expected to increase capex during 2012, by an average 29%

5

90113

140154

137 137155

173195

214

2005 2006 2007 2008 2009 2010 2011E 2012E 2013E 2014E

Exploration trend shifting towards offshore oil fields and away from onshore fields:

Offshore oil production contribution expected to grow ~37% by 2018, up from 35% in 2010,

driven by contribution from deepwater (water depths >= 600 feet)

Offshore fields to provide increasing share in the global oil supply

Global Offshore E&P Capex

US$ billion 2011E

2014E

Source: Clarkson Capital Markets, Douglas Westwood, The World Deepwater Market Report 2011-2015 (May 2011)

85% 15%

Shallow water CAPEXDeepwater CAPEX

78% 22%

Shallow water CAPEXDeepwater CAPEX

6

0

10

20

30

40

50

60

70

2006 2007 2008 2009 2010 2011E 2012E 2013E 2014E 2015E

SURF Subsea Processing Subsea Production Pipelines Floating Platform Drilling

Deepwater Capex to reach new highs - fuelling the demand for OSVs

Deepwater Capex by Component

US$ billion

Major proportion

constituted by drilling activity Golden Triangle

Source: Douglas Westwood, The World Deepwater Market Report 2011-2015 (May 2011)

Majority of Capex is directed towards Deepwater Activities:

Global Deepwater Capex is forecasted to reach $62 billion by 2015 from ~$22 billion in 2010,

indicating a CAGR of ~23%, driven by advancement in seismic and drilling technologies

Deepwater activity is mainly carried out in the Golden Triangle - West Africa, the US GoM and

Brazil

7

Country Number of Offshore Fields Average Water Depth

(feet) Distance from Shore

(km)

Angola 10 4,970 156 U.S. 25 4,751 173 Brazil 30 3,514 156 Nigeria 7 2,054 63 Malaysia 8 1,171 99 Norway 18 761 141 Australia 7 499 149 United Kingdom 14 361 122 India 16 230 100 China P.R. 7 226 38 Others 39 666 83 Total 181 1,896 126

Exploration Trend - Deeper and Deeper

Source: Clarkson Research, The Offshore Oil Market (March 2012)

Majority of the offshore activity is concentrated in the deepwater regions such as: Angola, U.S.,

Brazil, Nigeria, Malaysia and Norway

8 Source: SubseaIQ (division of Rigzone), Hornbeck Offshore Investor Presentation (March 2012), Clarkson Capital Markets

Offshore Oil Field:- Prospects, Discoveries (Drilled/Appraised), Under Development Fields (2011 April 2012)

US GoM: Big Foot, Water depth 5,330 ft, Chevron, Jack/St. Malo, Water depth 7,042 ft, Chevron Lucius, Water depth 7,168 ft, Anadarko Greater Chinook Area, Water Depth 8,877 ft, Petrobras Gunnison, Water Depth 3,138 ft, Anadarko Auger, Water Depth 2,878 ft, Marathon Oil

South America: Marlim Leste, Water depth 6,336 ft, Petrobas Barracuda, Water depth 3,630 ft, Petrobas Tupi, Water Depth 7,161 ft, Petrobas Guara Sul, Water Depth 7,065 ft, Petrobas Espadarte, Water Depth 2,805 ft, Petrobas Zaedyus, Water Depth 6,758 ft, Shell Albacora Leste, Water depth 200 ft, BPZ Energy

Europe - North Sea: Greater Norne Area, Water Depth 1,254 ft, Statoil Knarr (Jordbaer), Water Depth 1,320 ft, BG Esperanza, Water Depth 297 ft, BG Erne, Water Depth 5,562 ft, Antrim Ettrick, Water Depth 363 ft, Nexen

Asia Pacific: Gajah Baru, Water Depth 271 ft, Premier Oil Chim Sao, Water Depth 380 ft, Premier Oil Benjarong, Water Depth 10,626 ft, Coastal

Energy Laverda, Water Depth 2,640 ft, Woodside Janglau, Water Depth 10,761 ft, Lundin

Africa: Makore, Water Depth 4,646 ft, Kosmos Energy Ten Cluster, Water Depth 3,788 ft, Tullow Narina, Water Depth 3,772 ft, African Petroleum Corp. Independence discovery , Water Depth N/A, Vanco Jupiter, Water Depth 21,335 ft, Anadarko Azul, Water Depth 3,046 ft, Maersk Oil

Significant Hydrocarbon Discoveries in the Deepwater Regions

9

Offshore Support Vessel Industry - Overview

10

939 1,014 1,118 1,2391,409 1,609

1,755 1,864 1,927 1,952763 798

832 892969

1,0261,075 1,155

1,259 1,344

500

1,300

2,100

2,900

3,700

2005

2006

2007

2008

2009

2010

2011

2012

E

2013

E

2014

E

AHTS PSV

Age Profile, by number of vessels, At March-end 2012

Source: MarineBase, Clarkson Capital Markets estimates


Under 20 years Fleet, by vessel type, At March-end 2012


2,115 vessels

11


Source: MarineBase, Clarkson Capital Markets estimates Source: MarineBase, Clarkson Capital Markets estimates

as healthy orderbook promises future fleet growth

100% = 411 vessels

Global Orderbook, by Yards, At March-end 2012 Annual Deliveries, by number of vessels

Annual Orderbook, by number of vessels, At March-end 2012

Global OSV orderbook comprised over 14%

of the fleet at March-end 2012

Amongst yards, Sinopacific holds the top

position with 12% share, or 48 newbuilds on

order placed by Bourbon and Deep Sea

Supply, followed by ABG shipyard with 5%

share

107 61

19

123

105

48

0

50

100

150

200

250

2012E 2013E 2014E

AHTS PSV

112 128209 198

146

6297

93 87

70

0

90

180

270

360

450

2007 2008 2009 2010 2011AHTS PSV

12%

5%

3%3%

2%

74%

Sinopacif ic ABG ShipyardEastern Shipbuilding BharatiRemontowa Others

12

Historically, the OSV sector has witnessed low scrapping, except for 2009 where the demolitions touched

a record high with 34 vessels

Over the forecast period, we expect the demolitions to increase, driven by:

NOCs demand for younger vessels for long-term charters

Competition from higher specifications vessels

3

15

1 5

34

19

611

20

31

0

5

10

15

20

25

30

35

40

2005 2006 2007 2008 2009 2010 2011 2012E 2013E 2014E

and high scrapping reduces average fleet age

Offshore Fleet - Demolition, by number of vessels

Demolitions to increase in the coming years

5 915

231

2

5

8

2011 2012E 2013E 2014E

AHTS Demolition PSV Demolition

Source: Clarksons, MarineBase, Clarkson Capital Markets estimates

13

Asset values strengthened for newbuilds and modern 5-year old units

Small AHTS (80t BP) Values Medium AHTS (120t BP) Values

US$ million US$ million Median Newbuild(NB): $16.9 10yr-old: $10.0 5yr-old: $15.4 20yr-old: $5.3

Median Newbuild(NB): $30.5 10yr-old: $14.8 5yr-old: $27.4 20yr-old: $9.5

$18.0 $15.8 $10.0

$ 5.0

$31.8 $26.8

$15.0

$ 8.3

In 1Q 2010, the asset values strengthened for newbuilds and modern 5-year old units, while a contrary trend

was observed for the 10 and 20 year old vessels

The 10 and 20 year old vessel values have either trended downwards and stayed nearly flat, indicating

reduced relative demand for older vessels

Source: Clarksons

$0

$10

$20

$30

Jan-

08

Aug

-08

Mar

-09

Oct

-09

May

-10

Dec

-10

Jul-1

1

NB 5-yr-old 10-yr-old 20-yr-old

$0

$15

$30

$45

Jan-

08

Aug

-08

Mar

-09

Oct

-09

May

-10

Dec

-10

Jul-1

1


14

$0

$15

$30

$45

Jan-

08

Aug

-08

Mar

-09

Oct

-09

May

-10

Dec

-10

Jul-1

1


in contrast to a decline witnessed for their older counterparts

Large AHTS (200t BP) Values

Very Large AHTS (240t BP) Values

US$ million

US$ million


Median Newbuild(NB): $84.8 5yr-old: $78.1

$64.0 $56.0

$38.0 $ 27.0

$91.3 $79.0

Medium PSV (3,200t dwt) Values

Large PSV (4,000t dwt) Values

US$ million

US$ million



$29.3 $24.9

$13.5 $ 8.3

$45.8

$35.0 $23.0

$ 8.8

Source: Clarksons

$20

$45

$70

$95

Jan-

08

Aug

-08

Mar

-09

Oct

-09

May

-10

Dec

-10

Jul-1

1


$0

$50

$100

$150

Jan-

08

Aug

-08

Mar

-09

Oct

-09

May

-10

Dec

-10

Jul-1

1

NB 5-yr-old

$0

$25

$50

$75

Jan-

08

Aug

-08

Mar

-09

Oct

-09

May

-10

Dec

-10

Jul-1

1


15

0 20 40 60 80

100 120 140 160

Jan-

10

Apr

-10

Jul-1

0

Oct

-10

Jan-

11

Apr

-11

Jul-1

1

Oct

-11

Jan-

12

Apr

-12

CCM OSV Index (31.2%) WTI Crude Oil Index (31.3%)

Indexed Price

Source: Bloomberg; Clarkson Capital Markets 1. CCM OSV index comprising of the four companies under our coverage -

Tidewater, Gulfmark Offshore Inc. Bourbon and Hornbeck Offshore

Source: ODS-Petrodata, Clarkson Capital Markets estimates

Market expected to turn in favor of vessel owners

3.0x

3.5x

4.0x

4.5x

Mar

201

2

2Q 2

012

3Q 2

012

4Q 2

012

1Q 2

013

2Q 2

013

3Q 2

013

4Q 2

013

1Q20

14

2Q20

14

3Q20

14

4Q20

14

OSV to Rig Ratio CCM OSV Index(1) vs. WTI Crude Oil Prices

OSV to Rig ratio is expected to fall below 3.9 by 2014 from 4.1 as of March 2012, reflecting a tilt in market

balance in favor of vessel owners

Correlation = 0.94x , R-Squared = 0.84x

16

Regional Markets

17

15%

11%

9%7%

6%

52%

Edison Chouest Abdon Callais Hornbeck Tidewater Odyssea Others

13%

6%6%

5%4%

66%

Shell BP plc Chevron Apache Anadarko Others

Leading AHTS Players

Source: MarineBase

US GoM is the most actively explored

Leading Vessel Operators

Leading PSV Players

Potential deepwater discoveries (Jack/St. Malo

and the Big Foot) would continue to drive E&P

activity in the region

Top 5 Operators: Shell, BP, Chevron, Apache

and Anadarko

Leading Managers: The contracting side is

more top heavy with Seacor Marine and

Edison Chouest constituting maximum share

35%

29%

13%13%

3%7%

Seacor Marine Edison Chouest TidewaterHarvey Gulf KG Offshore Others

18

Utilization - AHTS and PSV

and drilled offshore basins

Source: Clarksons

Utilization: Utilization for AHTS remained

volatile while that of PSV has increased

Dayrates: AHTS rates are highest in the

region. The AHTS dayrates improved strongly

in 3Q 2011, and maintained those levels

thereafter. However, an opposite trend was

visible in the PSV rates which declined post 3Q

2011. For 2012, the OSV average dayrates

would probably down

AHTS Average earned Dayrates PSV Average earned Dayrates

20%

40%

60%

80%

100%

1Q 2

007

1Q 2

008

1Q 2

009

1Q 2

010

1Q 2

011

1Q 2

012

AHTS PSV

$10,000

$12,000

$14,000

$16,000

$18,000

1Q 2

007

1Q 2

008

1Q 2

009

1Q 2

010

1Q 2

011

1Q 2

012

$10,000

$30,000

$50,000

$70,000

$90,000

1Q 2

007

1Q 2

008

1Q 2

009

1Q 2

010

1Q 2

011

1Q 2

012

19


Source: MarineBase

Latin America is one of the important OSV markets


Leading PSV Players

Continued development of Brazils large

offshore basins like the Campos, Santos,

Espirito de Santos, and prospects like the

Atlantic Margins, to support the OSV demand

Top 5 Operators: Petrobras, Pemex, BP, OGX

and Shell

Leading Managers: Tidewater, Maersk Supply

and Edison Chouest

8%5%4%

3%2%

78%

Edison Chouest Tidewater Hornbeck CBO Bourbon Others

64%

17%2%2%2%

13%

Petrobras Pemex BP plc OGX Shell Others

15%

10%

7%4%

3%

61%

Tidewater Maersk Supply Edison ChouestDeep Sea Bourbon Others

20


given its huge growth potential over the next 10 years

Utilization: The utilization levels in the region

have remained fairly consistent

Dayrates: Tend to be higher in Brazil relative

to Mexico, as it is more expensive to work in

Brazil. Overall, the dayrates have shown a

gradual improvement over the last few years

and are expected to maintain the trend in 2012


Source: Clarksons

20%

40%

60%

80%

100%

1Q 2

007

1Q 2

008

1Q 2

009

1Q 2

010

1Q 2

011

1Q 2

012

AHTS PSV

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

1Q 2

007

1Q 2

008

1Q 2

009

1Q 2

010

1Q 2

011

1Q 2

012

$10,000

$12,000

$14,000

$16,000

$18,000

1Q 2

007

1Q 2

008

1Q 2

009

1Q 2

010

1Q 2

011

1Q 2

012

21


Source: MarineBase

West African region is both a shallow


Leading PSV Players

The incremental demand for OSV activity is

likely to come from deepwater projects in

Angola, Nigeria and Ghana

Top 5 Operators: Total, Chevron, ExxonMobil,

ENI and Perenco

Leading Managers: The vessels market is top

heavy, with Tidewater, Bourbon and Sanko

Line forming ~16 - 36% share of the market

20%

16%

8%7%4%

45%

Tidewater Bourbon Sanko LineSwire Pacif ic Maersk Supply Others

19%

16%

14%

8%6%

37%

Total S.A. Chevron ExxonMobilEni Perenco Others

10%6%

1%1%

1%

81%

Tidewater Bourbon Sanko LineSwire Pacif ic Edison Chouest Others

22


and deepwater play

Utilization: The AHTS and PSV utilization in

the region has declined gradually from high

levels.

Dayrates: The AHTS dayrates have nearly

halved over the last two years. In contrast, the

average dayrates earned by PSV stabilized

after declining sharply


Source: Clarksons

20%

40%

60%

80%

100%

1Q 2

007

1Q 2

008

1Q 2

009

1Q 2

010

1Q 2

011

1Q 2

012

AHTS PSV

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

1Q 2

007

1Q 2

008

1Q 2

009

1Q 2

010

1Q 2

011

1Q 2

012

$10,000

$14,000

$18,000

$22,000

$26,000

$30,000

1Q 2

007

1Q 2

008

1Q 2

009

1Q 2

010

1Q 2

011

1Q 2

012

23


Source: MarineBase

Middle East region is primarily


Leading PSV Players

In the region, the jack up rig count is a more

important driver of OSV activity and demand

Top 5 Operators: Saudi Aramco, Iranian

Offshore, Maersk, Qatar and Belayim

Leading Managers: In the AHTS market,

Zamil and Tidewater hold the majority share

while the PSV market is significantly

fragmented

25%

5%4%

4%4%

58%

Saudi Aramco Iranian Of fshore Maersk Qatar PetroleumBelayim Petroleum Others

10%9%5%

4%4%

68%

Zamil Co. TidewaterWhitesea Shipping Topaz MarineHalul Of fshore Others

2%2%1%

0.5%0.5%

94%

Tidewater Topaz Marine Halul Of fshore

Zakher Marine Intermarine Others

24


a shallow water play

Utilization: Both the PSV and AHTS

utilization levels have decreased gradually

from high levels over the last few years

Dayrates: Rates in this region are among the

lowest in the world, due to shallow waters in

the region and Saudi Aramcos ability to

dictate pricing


Source: Clarksons

20%

40%

60%

80%

100%

1Q 2

007

1Q 2

008

1Q 2

009

1Q 2

010

1Q 2

011

1Q 2

012

AHTS PSV

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

1Q 2

007

1Q 2

008

1Q 2

009

1Q 2

010

1Q 2

011

1Q 2

012

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

1Q 2

007

1Q 2

008

1Q 2

009

1Q 2

010

1Q 2

011

1Q 2

012

25


Source: MarineBase

North Sea is one of the oldest and most explored offshore...


Leading PSV Players

Application of enhanced oil recovery

techniques is expected to drive future demand

for OSVs in the region

Top 5 Operators: Statoil, BP, Peterson,

ConocoPhilips and Shell

Leading Managers: Gulf Offshore, a subsidiary

of Gulfmark, Simon Offshore and Siem

Offshore

7%6%

6%5%

5%

71%

Simon Mokster Siem Offshore Maersk Supply

Solstad Havila Others

14%

8%5%

4%4%

65%

Statoil BP plc Peterson

ConocoPhillips Shell Others

9%4%3%

3%3%

78%

Gulf Of fshore Simon Mokster Island Of fshore

Havila Rem Maritime Others

26


oil and gas basins

Utilization: The AHTS and PSV utilization

levels have remained volatile over the last few

years

Dayrates: While the average dayrates earned

by AHTS have relatively subdued, the PSV

dayrates have displayed consistency


Source: Clarksons

20%

40%

60%

80%

100%

1Q 2

007

1Q 2

008

1Q 2

009

1Q 2

010

1Q 2

011

1Q 2

012

AHTS PSV

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

1Q 2

007

1Q 2

008

1Q 2

009

1Q 2

010

1Q 2

011

1Q 2

012

$10,000

$13,000

$16,000

$19,000

$22,000

$25,000

$28,000

1Q 2

007

1Q 2

008

1Q 2

009

1Q 2

010

1Q 2

011

1Q 2

012

27


Source: MarineBase

Asia Pacific region offshore production has witnessed rapid


Leading PSV Players

Offshore production in the region has

witnessed rapid growth over the years, driven

by a wide array of geographic developments

Top 5 Operators: CNOOC, Petronas, Chevron,

PTT and Vietsovpetro

Leading Managers: China Oilfield and

Tidewater hold the majority share of the AHTS

market ,while the PSV market is fragmented

14%

9%

6%3%

2%

66%

CNOOC Petronas Carigali Chevron PTT Vietsovpetro Others

7%6%4%4%

4%

75%

China Oilf ield Tidewater Swire Pacif ic

Yantai Salvage Pacif ic Richf ield Others

2%1%1%1%

1%

94%

Tidewater Farstad China Oilf ield

Bourbon Swire Pacif ic Others

28

Utilization - AHTS and PSV Utilization: The AHTS and PSV utilization

have declined from moderately high levels and

stayed broadly flat over 2011. However, over

the next 12 months rates are expected to

remain stable or tread downwards

Dayrates: Post 1Q 2011, the average dayrates

have declined, however, for 2012 they are

projected to continue sideways to down


growth over the years

Source: Clarksons

20%

40%

60%

80%

100%

1Q 2

007

1Q 2

008

1Q 2

009

1Q 2

010

1Q 2

011

1Q 2

012

AHTS PSV

$10,000

$14,000

$18,000

$22,000

$26,000

$30,000

1Q 2

007

1Q 2

008

1Q 2

009

1Q 2

010

1Q 2

011

1Q 2

012

$10,000

$12,000

$14,000

$16,000

$18,000

1Q 2

007

1Q 2

008

1Q 2

009

1Q 2

010

1Q 2

011

1Q 2

012

29

Market Outlook

30

AHTS: Strong outlook for 2012


AHTS- Global 2009 2010 2011 2012E 2013E

Supply 1,409 1,609 1,755 1,864 1,927 Growth % 14% 9% 6% 3%

Demand 1,098 1,128 1,297 1,586 1,624 Growth % 2% 15% 22% 2%

Utilization 78% 70% 74% 85% 84%

AHTS Global Demand and Utilization We anticipate the AHTS

market to tighten in favor

of vessels in 2012

Utilization is expected to

reach peak levels from

2009-10

OUTLOOK

1,098 1,128 1,297

1,586 1,624

78%

70%74%

85% 84%

50%

60%

70%

80%

90%

800

1,000

1,200

1,400

1,600

1,800

2009 2010 2011 2012E 2013E

AHTS Demand Utilization

31

PSV: Robust in 2012


PSV- Global 2009 2010 2011 2012E 2013E

Supply 969 1,026 1,075 1,155 1,259 Growth % 7% 5% 7% 9%

Demand 703 721 776 898 937 Growth % 4% 8% 10% 6%

Utilization 73% 70% 72% 78% 74%

PSV Global Demand and Utilization

Utilization to mount in

2012 , however, the PSV

market is expected to

come under supply side

pressure in 2013 703 721 776

898 937

73%70%

72%

78%74%

50%

60%

70%

80%

600

700

800

900

1,000

2009 2010 2011 2012E 2013E

PSV Demand Utilization

OUTLOOK

32

THANK YOU

33

DISCLAIMER

This Investment Research is prepared by and/or disseminated by Clarkson Capital Markets (CCM). CCM is the trading name of CIS Capital Markets LLC a member of FINRA and SIPC and/or Clarkson Investment Services Limited authorized and regulated by the Financial Services Authority and/or Clarkson Investment Services (DIFC) Limited authorized by the Dubai Financial Services Authority. CIS Capital Markets LLC (CCM or the Firm) does and seeks to do business with companies covered in its research reports. As a result investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. The analyst(s) producing this Investment Research acknowledges that the views, analysis and estimates expressed in this research are the opinion of the research analyst(s) writing the report (or the research department), and may not be reflective of the opinion of the CCM or any of its associated non-research personnel. PLEASE READ THE IMPORTANT DISCLOSURES AND ANALYST CERTIFICATION INFORMATION AT THE END OF THIS REPORT General disclosures in addition to specific disclosures required by certain jurisdictions CCMs ultimate parent is Clarkson PLC (London Stock Exchange; ticker CKN:L), a Public Limited Company registered in England and Wales and domiciled in the UK. Clarkson PLC was founded in 1852 and is the worlds leading integrated shipping services group, operating from 29 offices located in 17 countries on five continents. As a result of its pre-eminent position within the shipping industry, the group has an established course of dealing, stretching in some cases over many decades, with key participants in the industry. Clarkson PLC is principally an investment holding company, whose subsidiaries are primarily involved in providing shipping related services. As a result, although Clarkson PLC, or its affiliated entities, may have concluded transactions for products or services other than investment banking services from the subject company in the past 12 months, no employee of Clarkson PLC, or its affiliates, has the ability to influence the substance of the reports prepared by CCM.

34

DISCLAIMER

IMPORTANT DISCLOSURES ON SUBJECT COMPANIES As of the end of the last calendar quarter, Clarkson is not a beneficial owner of more than 1% of any class of equity for any company covered in this report. In the next [12] months, Clarkson expects to receive or does intend to seek compensation for investment banking services from entities mentioned in this report.

In the past [12] months, Clarkson may have received compensation for products and services other than investment banking services from entities mentioned in this

report.

Within the last 12 months, Clarkson has either provided or currently is providing non-investment banking, securities related services to and/or in the past has entered into an agreement to provide services or currently has a client related relationship with the companies covered in this report.

Analyst as Officer or Director: Clarkson has internal policies that prohibit its analysts, persons reporting to analysts or members of their households from serving as an officer, director, advisory board member or employee of any company in the analysts area of coverage. GENERAL This report is not directed at, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would subject CCM and affiliates to any registration or licensing requirement within such jurisdictions. All material presented in this report, unless specifically indicated otherwise, is under copyright to Clarkson.

35

DISCLAIMER

In this disclaimer, "connected person" means, in relation to a member of CCM its shareholders directors, officers, employees and agents, its holding company, the shareholders, subsidiaries and subsidiary undertakings of its holding company and the respective directors, officers, employees and agents of each of them. This disclaimer is governed under English law and any dispute under or in connection with it shall be subject to the exclusive jurisdiction of English Courts. United Kingdom and MiFID passport jurisdictions: Distribution of this material in the UK is governed by the FSA Rules. This Report is intended only for distribution to Professional Clients and Eligible Counterparties (as defined under the rules of the FSA) and is not directed at Retail Clients (as defined under the rules of the FSA). Investment research produced by a third party and distributed to recipients in the MiFID passport jurisdictions has been identified as investment research produced by that third party and has been approved by CISL. United States of America: Distribution of this Material in the United States or to US persons is intended to be solely for major institutional investors as defined in Rule 15a-6(a)(2) under the US Securities Act of 1934. All US persons that receive this document by their acceptance thereof represent and agree that they are a major institutional investor and understand the risks involved in executing transactions in securities. Any US recipient of this Material wanting additional information or to effect any transaction in any security of financial instrument mentioned herein, must do so by contacting a registered representative of Clarkson Capital Markets, a FINRA registered broker dealer at 212.314.0900 or 713.235.7484. Investing in non-U.S. securities: Investing in non-U.S. securities may entail certain risks. The securities of non-U.S. issuers may not be registered with, nor be subject to the reporting requirements of the U.S. Securities and Exchange Commission. There may be limited information available on foreign securities. Offshore companies are generally not subject to uniform audit and reporting standards, practices and requirements comparable to those in the U.S. Securities of some foreign companies may be less liquid and their prices more volatile than securities of comparable US entities. In addition, exchange rate movements may have an adverse effect on the value of an investment in a foreign security and its corresponding dividend payment for U.S. investors. Net dividends to ADRs, if applicable are estimated, using withholding tax rates conventions, deemed accurate, but investors are urged to consult their tax advisor for exact dividend computations. Investors who have received this report from a member of Clarkson may be prohibited in certain states or other jurisdictions from purchasing securities mentioned in this report from a member of Clarkson. This Report may discuss numerous securities, some of which may not be qualified for sale in certain states and may therefore not be offered to investors in such states. This document should not be construed as providing investment services. Investing in non-U.S. securities including ADRs involves significant risks such as fluctuation of exchange rates that may have adverse effects on the value or price of income derived from the security. Securities of some foreign companies may be less liquid and prices more volatile than securities of U.S. companies. Securities of non-U.S. issuers may not be registered with or subject to Securities and Exchange Commission reporting requirements; therefore, information regarding such issuers may be limited. United Arab Emirates and applicable Middle East jurisdictions: Distribution of this material is governed by the DFSA rules. This information is intended for Professional Clients and market counterparties only and should not be relied upon by, retail clients. Clarkson Investment Services (DIFC) Limited has not been a party to or had any material input towards this Report. Clarkson Investment Services (DIFC) Limited aims to be transparent, fair in business dealings and adhere to DFSA conflicts of interest requirements.

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