PROSPECTS FOR THE FINANCIAL YEAR ENDING 31 DECEMBER 2017

(Q1 May 2017)

Oil prices continued to be low over the first quarter of 2017, which could continue to dampen sentiment in the market, and oil companies are likely to remain cautious over the short-term. We have seen some positive signs in the FPO market as oil companies consider bringing new projects on stream. The outlook for exploration activities however remains more unclear, which will likely delay any recovery in the OSV market. Despite this uncertainty, the Group will continue to pursue new opportunities that would meet the internal criteria for balanced risk and returns, and it remains focused on improving efficiency and productivity in our business struture.

(Q2 August 2017)

As oil prices remain at depressed level, we are cautious in the short term. We believe this is likely to delay the recovery in new exploration activities, which in turn, will negatively impact the OMS business. With the completion of the four major conversion projects in 2017, we expect revenue to improve for the remaining period of the financial year.

(Q3 November 2017)

Over the remainder of 2017, we expect to see further developments in the current FPSO projects, which should be positive for the Group’s FPO business revenue in 2018. For the OMS business, we expect to see a decline inactivity in Q4 2017 due to winter in the Caspian region and the monsoon season in South-East Asia, which will likely result in lower earnings for this business during the last quarter of 2017.

The advantages of Armada-C35 compared to the rest of the call-warrants are:

(1) It is offered by Macquarie which provide market makers such that the buy queue and sell queue will be adjusted according to the fluctuation in the price of the mother share.

(2) It only expires in July 2017

(3) Its ratio is small at only 1.1:1.