Q1

Q2

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Q4

Q410

Deep Sea Supply plc 24th of February 2010

Complete version

Deep Sea Supply Plc (DESSC or Company) is an offshore supply company with a modern fleet operating world-wide. The fleet can be divided into two segments; Anchor Handling Tug Supply Vessels (AHTS) and Platform Supply Vessels (PSVs).

Q4

Deep Sea Supply plc 4th Quarter anD preliminary Financial report 2010
Deep Sea Supply Plc (DESSC or Company) is an offshore supply company with a modern fleet operating world-wide. The fleet can be divided into two segments; Anchor Handling Tug Supply Vessels (AHTS) and Platform Supply Vessels (PSVs).
Summary: Improved EBITDA due to increased revenues and gain on sales. Good cost control. Soft market.
In Q410 DESSCs revenues increased to USD 37.3 mill. (USD 30.3 mill. in Q409) due to an increased fleet, higher utilization ratio and improved rates. A sale of Sea Otter and Sea Marten resulted in a USD 10 mill. gain.Vessels operating expenses (when adjusted for an increased fleet) have reduced by 3% and EBITDA hence improved to USD 26 mill. (USD 12.6 mill.). Net income before taxes was USD 8.7 mill. (-USD 3.3 mill). Full year 2010 revenues were USD 132.3 mill compared to USD 167.6 mill in 2009, or a reduction of 21%. EBITDA was USD 62.8 mill compared to USD 111.5 mill in 2009 or a reduction of 44%. The pre-tax result was USD 0.1 mill compared to USD 43.2 mill in 2009. The market for offshore supply vessels remained soft for Q410. The relocation of vessels to Brazil continued in Q410 and DESSC has currently 5 PSVs on long term charter to Petrobras and 3 AHTS on short/medium term contracts to other charterers in Brazil. An important part of DESSCs strategy is to gain market access to new local markets for its vessels. In Q111, DESSC reflagged Sea Weasel to Malaysian flag and the vessel was sold to a Malaysian joint venture where DESSC participates as owner and operator. The Company looks positively at developing new market opportunities in Malaysia. In Q111, DESSC sold the 11 year old AHTS vessels Sea Cougar and Sea Wolf at attractive prices. The strategic reason behind this sale was renewal of the Companys fleet. As the Company has previously announced, the Norwegian tax authorities, after reviewing the Companys tax return for 2006, claim that the sales price of shipbuilding contracts sold to Cyprus subsidiaries should have been higher. The Board of DESSC strongly disagrees with the tax authorities assessment of this case. No allocation has been done in the accounts for 2010. Following the revised tax legislation applicable for Norwegian Shipping Companies made after the High Court decision in February 2010, DESSC has booked a tax liability of NOK 15.8 mill. (USD 2.8 mill.) fully recognized in 2010. The tax is payable over 3 years. The Board suggests no dividend distributions in 4Q10. It is the Companys intention to revert to its former dividend strategy as and when the market improves.

Vessel operation
Vessels operating expenses in 2010 were USD 73.7 mill compared to USD 65.8 mill in 2009. Adjusting for fleet growth and vessels on bareboat charter, the operating expenses decreased by 1% in 2010 compared to 2009. Area of operation The Fleet of 21 vessels has been employed worldwide in 4Q10 and by end of the quarter the vessels operated in or were under mobilization to the following geographical areas; North Sea Mediterranean West Africa Asia and Australia South America : 5 vessels : 2 vessels : 1 vessels : 5 vessels : 8 vessels

Earnings, rate levels and market conditions

AHTS vessels In the end of 4Q10 DESSC had 13 AHTS vessels in operation of which 4 operated in the North Sea spot market. In addition DESSC had 5 AHTS vessels under construction. Freight revenues Total revenues from the AHTS vessels in 2010 decreased by 13% compared to 2009. The reduction was mainly due to lower rates and lower commercial utilization. This impact was partly offset by new vessels in operation and lower technical offhire. PSVs In the end of 4Q10 DESSC had 8 PSVs operating in the international term markets. In addition, the Company has 1 PSV under construction in Brazil. Freight revenues Total revenues from the PSVs in 2010 decreased by 35% compared to 2009. This was due to lower commercial utilization and lower rates.

Deep Sea Supply has chartering departments in Singapore, Brazil and Norway responsible for the marketing and chartering of the vessels. The offices in Singapore and Brazil are also technical managers for part of the fleet. Of the 21 vessels, 15 vessels had Cyprus flag and 6 vessels had Norwegian flag. The NOR flagged vessels are primarily crewed with Norwegians and EU seafarers. The Cyprus flagged vessels have full Filipino crew, a combination of Filipino crew and European Officers or a combination of Filipino and Indonesians.

4th Quarter 2010

Q4

Vessels under construction - Construction supervision: Construction supervision is performed partly by external management companies and partly by DESSC, with site teams located at the shipyard. Technical management of the Fleet DESSC considers it vital to do proactive maintenance and ensure that vessels are operating safely and are in technical good condition. At the same time, the Company has a strong focus on reducing operating expenses. This is done by continuously tight follow-up of external and own management offices. DESSC has established ship management companies in Brazil and Singapore in order to do technical management of the fleet in-house. The first vessels were taken over by DESSC own technical organizations in Q410.

Net currency items Currency items are the net result of both realised gains/(losses) and unrealised gains/(losses) arising from revaluation of monetary assets of the Group. Change in value of financial derivatives For hedging purposes, the Company has entered into interest rate swaps. The market value of these transactions is measured at the end of every quarter, resulting in an increase in 4Q10 of USD 0.6 mill. The value of the interest rate swaps is negative with USD 0.5 mill. Tax Taxes in 4Q10 were USD 2.6 mill and taxes for the full year 2010 were USD 2.5 mill. In 2007 the Company recognized an amount (USD 8.1 mill) as taxes payable following the transition rules from the old tax regime to the new tonnage tax system adopted by the Government. After a High Court decision in Norway, made on 12th February 2010, it was concluded that the transition rules were in breach of the constitution, paragraph 97. Following this decision, the Company decided to reverse the provision made in 2007 and to recognize the tax already paid in 2008 and 2009 as a receivable in the balance sheet. In May 2010 it was decided that tax legislation will be changed, which will give an option to settle the untaxed profits from the previous tonnage tax system with a one-time assessment. The Company has decided to enter into the new tax regime, which means that the company will settle its tax liability with a total payment of NOK 15.8 mill (USD 2.8 mill). This tax has been recognized in full in 4Q10 and will be payable in the period 2011-2013. As previously reported, DESSC has had a long standing dispute with the tax authorities. The tax authorities, represented by Skatt Sr (the regional tax office) is claiming that the sales price of shipbuilding contracts sold to various Cyprus domiciled subsidiaries in 2006, should have been higher. In February 2011, the Company was notified that Skatt Sr maintains their position. The Company strongly disagrees with Skatt Sr and has made no allocations in the 2010 financial statements related to this.

Cash, cash flow and equity

The Companys cash balance by the end of 2010 was USD 41.9 mill compared to USD 31.6 mill by the end of 2009. The cash generated from operating activities in 2010 was USD 36.4 mill, net cash generated from investing activities was USD 20.0 mill (sale of two AHTS vessels, delivery of Sea Marten, upgrade and survey costs), net proceeds from financing activities were a negative USD 46.1 mill. Net change in liquidity is hence USD 10.3 mill. Total Equity by the end of the 4Q10 was USD 161.6 mill compared to USD 164.0 mill by the end of last year.

Balance sheet
Trade and other receivables Total receivables from customers were USD 26.0 mill which is a slight increase from USD 22.5 mill by end of 2009. Of the total receivables, 70% was less than 1 month old and 24% between 1 and 4 months old. CIRR Loans During 2008 the Group applied for Commercial Interest Reference Rate (CIRR) loans from the Norwegian Export Credit Agency. The total loan amount was in NOK equivalent to USD 48.6 mill. The duration of the loans are 12 years and the cash proceeds from the loans have been deposited in a fixed deposit account with a Norwegian bank at a higher interest rate than that of the loans. The agreed period of the deposits is identical with the one of the loans. The loans and the interest thereof will be repaid from that account and the difference has been recognized as deferred gain and will be amortized over the period of the life of the loans. Currencies of revenues and costs Revenues are mainly in USD, EURO, BRL and GBP. Operating expenses are mainly in USD with the exception of NOK salaries on the NOR flagged vessels. Financial expenses are in USD and NOK.

Other items
Gain on sales The sale of Sea Otter and Sea Marten gave a significant gain in Q410. In addition, this item consists of gain related to the sale of vessels to Ship Finance International in 2007 and 2008. Other operating expenses These are general and administration expenses for the offices in Cyprus, Singapore, Brazil and Norway. Depreciations All vessels are depreciated to zero when they are 30 years old. Net financial items Interest expenses are related to interest on the senior bank loan facility financing most of the Companys vessels, the interest portion of the bareboat paid to Ship Finance International regarding the vessels on sale and leaseback, the separate financing facility for Sea Eagle 1 and interest of the loan facility from Metrogas Holdings.

4th Quarter 2010

Q4

Events after end of reporting period

An important part of DESSCs strategy is to gain market access to new local markets for its vessels. In Q111, DESSC reflagged Sea Weasel to Malaysian flag and the vessel was sold to a Malaysian joint venture where DESSC participates as owner and operator. The Company looks positively at developing new market opportunities in Malaysia. In Q111, DESSC sold the 12 year old AHTS vessels Sea Cougar and Sea Wolf at attractive prices. The strategic reason behind this sale was renewal of the Companys fleet.

Companys shareholders
As per the end of Q410, the Companys largest shareholder is Hemen Holding Limited with a shareholding of 35.1%.

Statement of the members of the board of Directors and other responsible persons of the Company for the interim financial statements
In accordance with Article 10, sections (3) (c) and (7) of the Transparency Requirements (Securities for Trading on Regulated Market) Law of 2007 (Law), we the members of the Board of Directors and other responsible persons for the interim financial statements of Deep Sea Supply Plc for the period of twelve months ended 31 December 2010 confirm that to the best of our knowledge: a. The interim consolidated financial statements that are presented on pages 7 to 19: (i) were prepared in accordance with the International Financial Reporting Standard 34 Interim Financial Reporting as adopted by the European Union, and in accordance with the provisions of Article 10, section (4) of the Law, and (ii) give a true and fair view of the assets and liabilities, the financial position and the profit or losses of Deep Sea Supply Plc, and b. The interim management report gives a fair review of the information required by Article 10, section (6) of the law.

Main risks factors and uncertainties

A number of the Companys vessels are in the spot market, on short or medium term charters and the earnings on these vessels are hence sensitive to changes in the charter rates and utilization. Reduced charter rate can result in a drain of the Companys cash. Currently the Company has 5 newbuildings under construction from shipyards and the Company is hence exposed to delays in deliveries which may impact future revenues. The Company is furthermore sensitive to changes in interest rates as part of its financing has floating interest.

Future outlook
The long term market fundamentals remain in place with a high oil price. E&P spending for 2011 is expected to increase by 15% compared to 2010, which is expected to lead to an increased demand for AHTS and PSVs. In the short and medium term, DESSC is expecting a soft Q111. There are many available OSVs worldwide and a significant number of vessels will be delivered also in 2011. However, bright spots include the recent tightening of the North Sea spot market, an increase in international outstanding term requirements and the continued trend of old vessels leaving the market. The Company is expected to benefit from strategic moves made in Brazil and Malaysia, and expects increased utilization of the fleet based on these initiatives.

Transaction between related parties

DESSC has entered into two sale and leaseback transactions with Ship Finance International Limited (SFI) in 2007 and 2008. SFIs largest shareholder is Hemen Holding Ltd. who is also DESSCs largest shareholder. The sale and leaseback transactions are done on market terms. The Company has also entered into a credit facility agreement with Metrogas Holdings Inc, an affiliated company of Hemen Holding Limited. The facility agreement is done at market terms.

Limassol, 22 February 2011 The Board of Deep Sea Supply PLC

Svein Aaser, Chairman

Frixos Savvides

Kathrine Fredriksen

Anna Cecilie Holst

Fredrik Halvorsen

Terje Tellefsen

Finn Amund Norbye, CEO

Anders Hall Jomaas, CFO

Q4

Deep Sea Supply plc

Deep Sea Supply Plc (or the Company) is an offshore supply company with a modern fleet of Anchor Handling Tug Supply vessels (AHTS) and Platform Supply Vessels (PSVs). The parent company is based in Cyprus and listed on Oslo Stock Exchange under the ticker DESSC. The Companys focus is on the following main strategic areas; Chartering/Marketing usiness development B Finance/Reporting Investor Relations Quality and efficient operations of its vessels The Companys fleet of AHTS and PSVs are trading world-wide. Deep Sea Supply practices an open and transparent communication.
10

Share price and total return

Total Return Price

40 35 30 25 20 15

Since inception in 2005, Deep Sea Supply has maintained a shareholder friendly strategy with a focus on high dividend payments. In 2009, the Company started to focus on market penetration and taking the necessary steps to be a local supplier of offshore supply vessels in several countries. In 2009, the Company established business in Brazil and placed a newbuilding order for a large PSV at STX Offshore Brasil S.A. The Company is also working on market penetration in other countries. Lately, the Company has decided to establish its own technical management organizations for the purpose of doing the technical management of most of the AHTS and PSVs in house. In addition to a management company in Cyprus, the Company has management companies in Singapore, Brazil and Norway. The Companys main shareholder is Hemen Holding Ltd., owning 35,1 % of the Company. The DESSC share has been the most liquid offshore supply stock on Oslo Stock Exchange.

NOK per share

5 0
Sep-05 Jan-06 May-06 Sep-06 Jan-07 May-07 Sep-07 Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10 Jan-11

Distribution to shareholders 2006* Q1 2007* Q2 2007* Q3 2007* Q4 2007* Q1 2008** Q2 2008**

Amount per share noK 0,80 noK 0,20 uSD 0,85 (noK 4,62) uSD 0,40 (noK 2,18) uSD 0,40 (noK 2,00) uSD 0,13 (noK 0,68) noK 1,00

Ex. dividend date 08-05-07 22-06-07 24-09-07 11-12-07 26-03-08 14-05-08 02-09-08

Payment date 28-06-07 04-10-07 29-10-07 31-01-08 29-05-08 16-06-08 17-09-08

* Dividend by way of reducing the share premium account ** ordinary dividend from profit
4th Quarter 2010

Q4

conSoliDateD Statement oF comprehenSiVe income

(Unaudited figures in USD 1,000)

Note 4 4

YTD 2010 132,346 -73,681 -2,925 0 15,819

YTD 2009 167,633 -66,163 0 8,953 8,765 -7,696 -56,142 111,491 -36,368 75,123 665 -28,013 -8,316 3,752 -31,913 43,210 8,084 51,294 126,863,860 0.40 0.40 0.66

4Q 10 37,337 -18,807 -1,104 0 11,441 -2,881 -11,352 25,984 -9,447 16,538 160 -7,693 -960 631 -7,863 8,675 -2,475 6,200 126,863,860 0.05 0.05 0.15

4Q 09 30,287 -17,162 0 199 2,271 -2,981 -17,674 12,613 -9,115 3,498 157 -5,879 -1,333 267 -6,788 -3,290 8,095 4,805 126,863,860 0.04 0.04 0.05

3Q 10 33,906 -19,651 -1,104 0 1,463 -2,012 -21,305 12,600 -9,148 3,452 67 -8,100 1,423 227 -6,383 -2,931 -2 -2,933 126,863,860 -0.02 -0.02 0.04

Operating revenue Vessel operating expenses Operating lease Other gains / (losses) Gain on sale Other operating expenses Total operating costs EBITDA Depreciation EBIT Financial income Financial expenses Net currency items Change in value of financial derivatives Net financial items Pre-tax result Taxes Total comprehensive income Average number of shares Earnings per share Earnings per share diluted Cash flow per share 1)

-8,710 -69,497 62,849

-36,447 26,402 337 -29,065 1,164 1,241 -26,323 79 -2,617 -2,538 126,863,860

7 7

-0.02 -0.02 0.27

1) Profit before taxes+depreciation-unrealized gain on currencies

4th Quarter 2010

Q4

4th Quarter 2010

Q4

conSoliDateD Balance Sheet

(Unaudited figures in USD 1,000)

Note 5 5 5

31.12.10 603,322 24,736 659 234 455 43,693 673,098 2,909 9,374 4,959 26,017 41,932 85,192 758,290

31.12.09 650,537 26,327 65 0 0 49,426 726,355 2,221 6,349 5,038 22,483 31,616 67,707 794,062

(Unaudited figures in USD 1,000)

Note 6 6

31.12.10 456,496 43,647 36,573 1,806 11 538,535

31.12.09 471,599 49,374 53,057 0 79 574,109 39,505 5,038 3,588 6,059 0 1,770 55,960 630,069 163,994 10,735 153,259 163,994

Non-current assets Vessels cost Construction contract Equipment Deferred income tax Other long term receivables CIRR deposit Total non-current assets Current assets Inventories Other short term receivables CIRR deposit Freight income not received Cash and cash equivalents Total current assets Total assets

Liabilities Borrowings CIRR loan Deferred gain Long term tax liabilities Other long term liabilities Total long term liabilities Borrowings CIRR loan Trade payables Deferred gain Tax payable Other short term liabilities Total short term liabilities Total liabilities Net assets Shareholders equity Share capital, share premium and treasury shares Retained earnings and currency translation Total shareholders equity 10,861 150,723 161,584 6 6

35,738 4,959 11,519 4,493 903 529 58,171 596,706 161,584

4th Quarter 2010

Q4

conSoliDateD Statement oF chanGeS in eQuity

(Unaudited figures in USD 1,000)

Share Capital 2,599

Reverse acquisition reserves -123,386

Share premium reserves 139,588

Treasury shares -9,787

Other paid-inequiy 1,242

Retained earnings 109,085 51,294

Currency translation differences -7,120

Total 112,221 0 51,294

Balance at 1 January 2009 Total comprehensive income for year ended ended 31 December 2009 Balance at 31 December 2009 Balance at 1 January 2010 Cancellation of own shares Share option scheme Total comprehensive income for year ended 31 December 2010 Balance at 31 December 2010

2,599 2,599 -62

-123,386 -123,386

139,588 139,588 -9,725

-9,787 -9,787 9,787

1,242 1,720 126

160,379 160,379

-7,120 -7,120

163,516 163,994 0 126

-2,538 2,537 -123,386 129,863 0 1,846 157,841 -7,120

-2,538 161,583

4th Quarter 2010

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Q4

conSoliDateD Statement oF caSh FloWS

Year ended 31 December
(Unaudited figures in USD 1,000)

2010 36,409 36,409

2009 116,995 116,995

Cash flows from operating activities Cash generated from operations Net cash generated from operating activities Cash flows from investing activities Acquisitions of vessels and construction contracts Disposals of vessels and construction contracts Net cash used in investing activities Cash flows from financing activities Interest paid Proceeds from borrowings Repayments of borrowings Net cash used in financing activities Total changes in liquidity in the period/year Cash and cash equivalents at beginning of period/year Cash and cash equivalents at end of the period/year -27,138 39,482 -58,491 -46,147 10,316 31,616 41,932 -27,308 9,660 -40,478 -58,126 -2,183 33,799 31,616 -20,915 40,969 20,054 -61,052 0 -61,052

4th Quarter 2010

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Q4

noteS
1. General information Deep Sea Supply PLC (the Company) and its subsidiaries, here after collectively (the Group) principal activities are to engage and invest, directly or indirectly, by itself or through subsidiaries or partowned companies, partnerships or other forms of entities, in the international offshore supply vessel business. The Company was incorporated as a public limited liability company on 7 November 2006 in Cyprus in accordance with the provisions of the Companies Law, Cap. 113. The Company was established for the purpose of acquiring all shares of Deep Sea Supply ASA. The Company has its primary and only listing on the Oslo Stock Exchange. These unaudited condensed consolidated financial statements have been approved for issue by the Board of Directors on 22nd February 2011. 2. Basis of preparation These condensed unaudited consolidated interim financial information for the year ended 31 December 2010 have been prepared in accordance with IFRS as adopted by the E.U. applicable to interim financial reporting, IAS 34 Interim Financial Reporting and the regulations of Oslo stock exchange. The interim financial report should be read in conjunction with the annual financial statements for the year ended 31 December 2009, which have been prepared in accordance with IFRS as adopted by the European Union. 3. Summary of significant accounting policies Accounting policies Except as described below, the accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2009, as described in those financial statements. Taxes on income in the interim period are accrued using the tax rate that would be applicable to expected total annual earnings. At the date of approval of these financial statements a number of accounting standards were issued by the International Accounting Standards Board but were not yet effective. The effect of those standards is not expected to be material for the Group. There has been no further impact on the measurement of the Groups assets and liabilities 4. Segment information The chief operating decision maker for the Group is the top management together with the board of directors in matters that concern the day to day running of the business and in matters concerning acquisition and disposals of vessels. Day to day running of the business includes decision on where the vessels should be located and duration of the contracts with the customers.

4th Quarter 2010

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Q4

4. primary SeGment - area oF operationS

The segment results for the year ended 31 December 2010 is as follows: Asia / Australia 38,408 -17,143 -2,736 0 -13 -2,528 15,988 42% -7,309 8,680 23% North / South America 26,873 -15,971 -189 0 11,487 -1,769 20,432 76% -6,162 14,270 53% Unallocated items 0 0 0 0 0 0 0 -97 -97

North Sea Segment revenues Vessel operating expenses Operating lease Other gains/(losses) Gain on sale Other operating expenses EBITDA per segment EBITDA margin per segment Depreciation EBIT per segment EBIT margin per segment Net Financial Items Pre-tax result Taxes Net Result 21,582 -18,703 0 0 248 -1,420 1,706 8% -8,365 -6,659 N/A

Africa 11,804 -5,795 0 0 659 -777 5,891 50% -2,139 3,752 32%

Mediterranean 33,678 -16,069 0 0 3,438 -2,216 18,831 56% -12,376 6,455 19%

Total 132,346 -73,681 -2,925 0 15,819 - 8,710 62,849 47% -36,447 26,402 20% -26,323 79 -2,617 -2,538

4th Quarter 2010

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Q4

4. primary SeGment - area oF operationS

The corresponding segment results for the year ended 31 December 2009 is as follows: Asia / Australia 45,295 -10,815 0 0 -2,079 32,401 72% -5,764 26,637 59% North / South America 8,535 -3,180 0 1,689 -392 6,652 78% -3,077 3,575 42% Unallocated items 0 0 8,953 -447 0 8,506 -60 7,999

North Sea Segment revenues Vessel operating expenses Other gains/(losses) Gain on sale Other operating expenses EBITDA per segment EBITDA margin per segment Depreciation EBIT per segment EBIT margin per segment Net Financial Items Pre-tax result Taxes Net Result 20,822 -17,166 0 0 -956 2,700 13% -7,140 -4,440 N/A

Africa 15,893 -5,574 0 659 -730 10,248 64% -1,967 8,281 52%

Mediterranean 77,089 -29,426 0 6,863 -3,539 50,987 66% -18,361 32,626 42%

Total 167,633 -66,163 8,953 8,765 -7,696 111,493 67% -36,369 75,124 45% -31,915 43,209 8,084 51,294

4th Quarter 2010

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Q4

4. SeconDary SeGment - type oF VeSSel

The segment results for the year ended 31 December 2010 is as follows: AHTS Segment revenues Vessel operating expenses Operating lease Other gains/(losses) Gain on sale Other operating expenses EBITDA per segment EBITDA margin per segment Depreciation EBIT per segment EBIT margin per segment Net Financial Items Pre-tax result Taxes Net Result 92,351 -53,581 -2,925 0 14,429 -6,078 44,196 48% -29,012 15,185 16% PSV 39,995 -20,101 0 0 1,384 -2,632 18,646 47% -7,338 11,308 28% -97 -92 Unallocated items 0 0 0 0 5 0 5 Total 132,346 -73,681 -2,925 0 15,819 -8,710 62,849 47% -36,447 26,402 20% -26,323 79 -2,617 -2,538

4th Quarter 2010

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Q4

4. SeconDary SeGment - type oF VeSSel

The corresponding segment results for the year ended 31 December 2009 is as follows: AHTS Segment revenues Vessel operating expenses Other gains/(losses) Gain on sale Other operating expenses EBITDA per segment EBITDA margin per segment Depreciation EBIT per segment EBIT margin per segment Net Financial Items Pre-tax result Taxes Net Result 105,971 -48,502 0 7,828 -4,865 60,432 57% -28,704 31,728 30% PSV 61,662 -17,659 0 937 -2,831 42,109 68% -7,603 34,506 56% -61 8,892 Unallocated items 0 0 8,953 0 0 8,953 Total 167,633 -66,161 8,953 8,765 -7,696 111,494 67% -36,369 75,124 45% -31,915 43,210 8,084 51,294

4th Quarter 2010

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Q4

5. property, plant anD eQuipment

Finance lease vessels 285,285 -345 0 -33,426 0 0 -15,317 236,196 236,197 4,453 -12,027 0 -12,211 216,412 Vessels in progress 31,735 8,910 0 0 -10,664 -3,655 0 26,327 26,327 3,718 0 -5,309 0 24,736 Vehicles & equipment 95 44 -14 0 0 0 -60 65 65 693 0 0 -98 659

Vessels Opening net book value as at 1 January 2009 Additions Disposals Vessels impairment Delivered new buildings Cancellation of new buildings Depreciation and amortisation Closing net book value as at 31 December 2009 Opening net book value as at 1 January 2010 Additions Disposals Vessels impairment Delivered new buildings Depreciation and amortisation Closing net book value as at 31 December 2010
FUTURE CAPITAL EXPENDITURE NEWBUILDING CONTRACTS (Unaudited figures in USD 1,000)

Total 686,520 63,873 -14 -33,426 0 -3,655 -36,369 676,928 676,930 20,260 -29,695 -12,027 9,695 -36,445 628,716

369,404 55,264 0 0 10,664 0 -20,991 414,340 414,340 11,395 -29,696 0 15,003 -24,137 386,904

Q1 2011 24,500 18,500

Q2 2010 32,000 18,500

Q3 2010 12,250 9,250

Q4 2010 0 0

Q1 2012 60,000 54,750

Total 128,750 101,000

Contractual yard payments Maximum committed bank borrowings*

* Based on current market values of the vessels to be delivered from ABG shipyard, the total available bank commitment is USD 9.25 mill.

4th Quarter 2010

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Q4

6. BorroWinGS anD loanS

Borrowings Non-current Current Sale and leaseback and bareboat Non-current Current CIRR Loan Non-Current Current Total Borrowings Movement in borrowings are analysed as follows: Year ended 31 December 2009 Opening balance as at 1 January 2009 Proceeds from new loans Repayment of loans Borrowing costs Currency translations Closing amount as at 31 December 2009 Year ended 31 December 2010 Opening balance as at 1 January 2010 Proceeds from new loans Repayment of loans Borrowing costs Currency translations Closing amount as at 31 December 2010 Borrowings 290,722 9,660 -25,002 940 9,584 285,905 Borrowings 285,905 39,600 -43,705 627 -1,188 281,239 Sale and leaseback 240,694 0 -15,495 0 0 225,199 Sale and leaseback 225,199 0 -14,174 0 0 211,025 CIRR Loan 48,943 0 -5,038 5 10,502 54,412 CIRR Loan 54,412 0 -4,959 6 -852 48,607 Total 580,359 9,660 -45,535 945 20,086 565,516 Total 565,515 39,600 -62,838 633 -2,040 540,870
4th Quarter 2010

31 December 2010 260,601 20,639 281,239 195,895 15,129 211,025 43,647 4,959 48,607 540,870

31 December 2009 260,698 25,207 285,905 210,901 14,298 225,199 49,374 5,038 54,412 565,516

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Q4

7. earninGS per Share

Basic Profit attributable to equity holders of the company Weighted average number of ordinary shares (thousands) Basic earnings per share (USD per share) Diluted Profit attributable to equity holders of the company Weighted average number of ordinary shares diluted (thousands) Diluted earnings per share (USD per share) 2010 -2,538 126,863,860 -0.02 2010 -2,538 128,112,188 -0.02 2009 51,294 126,863,860 0.40 2009 51,294 128,112,188 0.40

8. Sale anD leaSeBacK eFFect

The impact from the sale and leaseback transtactions on the profit and loss is as follows: 2010 Interest paid Deferred gain recognised in profit and loss Depreciation charge of leased vessels -17,331 5,828 -12,212 2009 -17,887 9,212 -15,317

9. SeaSonality
Operating income and expenses are not subject to seasonable fluctuations other than changes in spot rates due to changes in the underlying market conditions.

10. relateD party tranSactionS

During the year, the Group has obtained an unsecured loan from a major shareholder, of USD 10 million. The balance at the end of third quarter was USD 10 million. The loan is payable in three years and carries interest of 3 months LIBOR plus 450 bps per annum.

11. income tax

As previously announced, the Norwegian tax authorities, after reviewing the tax return of 2006 of Deep Sea Supply AS (a wholly owned subsidiary of the Group at that time), claims that the transaction involving the sale of ship building contracts to Cyprus domiciled subsidiaries should have been done in higher levels. The Company, after advice from auditors and tax lawyers, is disputing the claim of the tax authorities. The board is strongly disputing the issue raised by the tax authorities.

12. eVentS aFter the Balance Sheet

The vessels Sea Wolf 1 and Sea Cougar were sold. The vessel Sea Weasel was reflagged to Malaysian flag, and sold to a joint venture in Malaysia where the Company participates with a significant shareholding.
4th Quarter 2010

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Q4

ShareholDerS
THE LARGEST SHAREHOLDERS AS PER 17 FEBRUARY REGISTERED IN VPS Citizen hemen holDinG limiteD SKaGen Kon-tiKi pereStroiKa aS SVenSKa hanDelSBanKen orKla aSa Varma mutual penSion inSurance DnB nor marKetS Klp aKSJe norDen VpF terra Spar centra inVeSt aS VerDipapirFonDet hanDelSBanKen tD ameritraDe J.p. morGan chaSe BanK J.p. morGan chaSe BanK citiBanK n.a. liVSFrSKrinGSaKtieBolaGet mp penSJon pK e traDe clearinG llc SKanDinaViSKa enSKilDa BanKen DnB nor SmB Total 20 largest shareholders: Total other shareholders: Total number of shares: cyp nor nor SWe nor GBr nor nor nor nor nor uSa GBr GBr uSa GBr nor GBr SWe nor No. of shares: 44,583,853 11,096,000 6,350,000 3,255,577 3,025,275 2,764,109 2,643,717 1,700,000 1,280,000 900,000 800,000 769,757 754,200 747,239 689,312 669,933 658,800 640,990 635,012 600,000 84,563,774 42,300,086 126,863,860 % 35.14% 8.75% 5.01% 2.57% 2.38% 2.18% 2.08% 1.34% 1.01% 0.71% 0.63% 0.61% 0.59% 0.59% 0.54% 0.53% 0.52% 0.51% 0.50% 0.47% 66.66% 33.34% 100.00%

4th Quarter 2010

20

Q4

Fleet liSt & charter StatuS aS per 24 FeBruary 2011

Vessel AHTS Vessels Sea Lion Sea Tiger Sea Lynx Sea Panther Sea Leopard Sea Bear Sea Cheetah Sea Jaguar Sea Eagle 1 Sea Ocelot Sea Weasel Sea Fox PSVs Sea Trout Sea Halibut Sea Angler Sea Pike Sea Bass Sea Pollock Sea Turbot Sea Witch VS 470 MK II PSV UT 755 L PSV UT 755 L PSV UT 755 L PSV UT 755 L PSV UT 755 L PSV UT 755 L PSV UT 755 L 3300 DWT 3250 DWT 3250 DWT 3250 DWT 3250 DWT 3250 DWT 3250 DWT 3250 DWT 18.06.08 27.04.07 19.07.07 10.10.07 18.01.08 30.04.08 20.08.08 17.12.08
enQuest north Sea petrobras Brazil eni congo petrobras Brazil petrobras Brazil petrobras Brazil petrobras Brazil Singapore
Firm: Option: Spot:

Type AHTS Havyard 842 AHTS KMAR 404 AHTS KMAR 404 AHTS KMAR 404 AHTS KMAR 404 AHTS KMAR 404 AHTS Khiam Chuang AHTS Khiam Chuang AHTS Khiam Chuang AHTS Khiam Chuang AHTS Seatech P-729 AHTS Seatech P-729

Bhp/Dwt 17520 BHP 15000 BHP 15000 BHP 15000 BHP 15000 BHP 15000 BHP 15000 BHP 15000 BHP 12000 BHP 10800 BHP 6500 BHP 6800 BHP

Year built 1Q 04.11.08 1998 1999 1999 1998 1999 25.01.07 06.07.07 20.04.09 01.10.07 29.10.09 13.01.11
mediterranean maersk oil/Statoil Brasil north Sea maersk oil/Statoil Brasil Brazil north Sea mellittah Gas libya eni china eni china Singapore petronas malaysia Singapore

2011
2Q 3Q 4Q

2012

2013

2014

4th Quarter 2010

21

Q4

neWBuilDinG DeliVery

Vessel no AHTS Vessels 272 273 274 275 PSVs 28

Vessel Sea Jackal Sea Badger Sea Vixen Sea Stoat TBN

Yard ABG ABG ABG ABG STX Offshore Brazil S.A.

Type AHTS Seatech P-729 AHTS Seatech P-729 AHTS Seatech P-729 AHTS Seatech P-729 STX PSV 09 CD

Bhp/Dwt 6800 BHP 6800 BHP 6800 BHP 6800 BHP 4700 DWT

Expected Delivery Mar 11 May 11 Jun 11 Jul 11 Jan 12

4th Quarter 2010

22

Q4

aGe DiStriBution current Fleet anD orDer BooK

Supply fleet by building year
350

300

250

Number of units

200

150

100

50

1965

1966

Source: ODS Petrodata 4th Quarter 2010

1967

1968

AHTS

1969

1970

1971

1972

PSV
AHTS Vessels > 20 years: 34.3 % of total fleet Vessels > 30 years: 13.8 % of total fleet PSV Vessels > 20 years: 23.5 % of total fleet Vessels > 30 years: 9.9 % of total fleet 23

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2009

2010

2011E

2012E

2013E

2014E

2008

Q4

the riG anD Supply marKet SeemS to Be in Balance

Supply vessels Existing fleet Orderbook Average age Rig market Existing fleet Orderbook

Total fleet 2318 393 12.9 Total fleet 733 135 18% 17%

AHTS 1351 215 13.7 Semis/drillships 259 69 27% 16%

PSV 967 178 11.8 Jackups 474 66 14% 18%

4th Quarter 2010

24

Q4

4th Quarter 2010

25

Deep Sea Supply Group Contact information

www.deepseasupply.no
Cyprus Deep Sea Supply plc John Kennedy ave. iris house 7th Floor office no.740B limassol 3100 cyprus Deep Sea Supply management (cyprus) ltd Deana Beach apts, Block 1, Flat 411 promachon elefterias Street agios athanasios 4013 limassol cyprus postal address: p.o. Box 53340 cy-3302 limassol cyprus Norway Deep Sea Supply management aS tromyveien 22 4841 arendal norway Singapore Deep Sea Supply management (Singapore) pte.ltd. 10 hoe chiang rd #19-03/04/05 Keppel tower Singapore 089315 Brazil Deep Sea Supply Servicos maritimos ltDa avenida presidente Wilson 231, sala 1.403. cep:20030-021 rio de Janeiro rJ Brazil