Lysaker, July 10, 2018, Summary and highlights from Sevan Marine’s second quarter 2018:

  • On June 07, 2018, Sevan Marine entered into an agreement to sell its intellectual property, shares in HiLoad LNG AS and to transfer certain other assets and obligations, including employees, to SembCorp Marine Integrated Yard Pte Ltd (“SCM”). Sevan Marine will retain its net cash position, the Dana Western Isles license agreement and the financial benefit of the Shell Penguins license agreement. On July 05, 2018, SCM agreed to increase its offer from USD 28 million to USD 39 million. On this basis, Sevan Marine has accepted to terminate the right to accept any alternative offer. For further details please refer to Sevan Marine’s press releases from June 08, 2018, June 12, 2018 and July 06, 2018. On July 06, 2018, the shareholders of Sevan Marine approved the transaction.
  • In accordance with IFRS accounting standards, the remaining Sevan Marine business is reported as continued operations while the disposed business is reported as discontinued operations in this report.
  • Adjusted EBITDA from continued and discontinued operations, excluding one-off items, was NOK 5.2 million (NOK 15.6 million), a decline of NOK 10.4 million versus the first quarter. The main driver for the decline was the Penguins license fee of NOK 20.7 million which was received in the first quarter 2018.
  • Operating revenue from continued and discontinued operations was NOK 22.9 million in the second quarter, down from NOK 30.8 million in the first quarter 2018. The decrease was due to Penguins revenue of NOK 20.7 million in the first quarter which was only partially compensated by increased Dana royalty revenue of NOK 8.2 million and increased engineering income of NOK 4.6 million. Engineering revenue is recorded in discontinued operations.
  • Dana Western Isles achieved plateau production in April 2018. Sevan Marine is entitled to USD 0.5 per barrel produced and offloaded. The related revenue for Q2 2018 was NOK 15.0 million (NOK 6.8 million) in continued operations.
  • Operating costs from continued and discontinued operations, including one-off items, increased by NOK 5.6 million compared to first quarter 2018 to NOK 24.2 million. Excluding one-off items, operating costs in the quarter increased by NOK 2.6 million to NOK 17.7 million (NOK 15.2 million). One-off items in continued operations were negatively impacted by NOK 5.8 million in SCM transaction related costs, including legal and advisor fees and transaction bonuses as well as NOK 0.6 million in other one-off costs largely related to the now dismissed Brazil case and the Sembmarine SSP patent infringement proceedings.
  • On July 06, 2018, Teekay and a group of shareholders entered into an agreement whereby Teekay agrees to offer its 43.5 percent shareholding in Sevan Marine to all other shareholders in Sevan Marine on a pro rata basis for a price of NOK 10 per share, subject to adjustment for any distributions from Sevan Marine until completion of the offer (the “Teekay Offer”). Upon completion of the Teekay Offer, Sevan Marine has agreed to withdraw the lawsuit against Logitel Offshore Pte Ltd. and the parties have agreed not to bring or pursue any other claims against each other and their affiliates in relation to activities prior to July 06, 2018. The completion of the Teekay Offer is subject to the following key conditions: (i) required corporate approvals; (ii) closing of the SCM transaction; (iii) the subscription of all Teekay’s shares in Sevan Marine; and (iv) regulatory approvals.
  • At the annual general meeting held on May 24, 2018, shareholders approved a share capital reduction and return of NOK 0.50 per share to shareholders. In addition, at the extraordinary general meeting held on July 06, 2018, shareholders approved a further share capital reduction and return of NOK 2 per share to shareholders. It is also Sevan Marine’s intention to pay a further interim dividend of at least NOK 4 per share subject to an interim balance sheet and further EGM approval. Until the earlier of (i) December 1, 2018 and (ii) close of the offer period for Teekay’s shares, Sevan Marine has agreed defer all distributions to its shareholders including the already agreed share capital reductions and interim dividends mentioned above.
  • It is expected that the SCM transaction will be completed in Q3 2018 and the Teekay Offer in Q4 2018.

“Q2 has been an exciting quarter for Sevan Marine. The SembCorp and Teekay transactions position Sevan Marine for the future. The SembCorp transaction gives the Sevan Marine cylindrical design a strong industrial partner to further develop and commercialize the concept while realizing value for shareholders today. With the Teekay transaction, Sevan Marine will also resolve all material legacy issues while providing shareholders with a cash generating, stock exchange listed platform for future growth”, says Reese McNeel, CEO of Sevan Marine.

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Reese McNeel CEO will today at 14:00 CET (Oslo time) host a conference call for investors, analysts and other interested parties.

A Q&A session will follow the presentation and information on how to submit questions to management will be given at the beginning of the Q&A session. To participate to the management presentation of the results, please dial in 5-10 minutes prior to the start time using the numbers and confirmation code below.

Call in numbers:
Norway: +47 2100 2610
International dial in: +44 330 336 9105

The participants will be asked for their name, company and confirmation code. The Sevan Marine confirmation code is: 4838649

Presentation material that will be used during the call is attached and also available at The presentation will be in English.

Sevan Marine Q2 2018 Report
Sevan Marine Q2 2018 Presentation

For more information please contact:
Reese McNeel, CEO, Sevan Marine ASA
+47 415 08 186

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The information in this announcement is subject to the disclosure requirements of the Norwegian Securities Trading Act section 5-12 and/or the Oslo Børs – Continuing Obligations.

Sevan Marine is a technology, design and engineering company. The company is developing, designing and delivering cost effective offshore solutions based on its unique cylindrical hull design and the HiLoad LNG offloading and regas technologies. Sevan Marine ASA is listed on the Oslo Børs with ticker SEVAN. For more information, please refer to