Maritime Business Day seminar in Helsinki 30.1.2018_Presentation by Jaakko Isotalo, Senior Advisor, Member of the Board, Gateway Norway

1. Maritime & Offshore
Market Update
Helsinki 30.01.2018

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Jaakko Isotalo
Senior Advisor
Member of the board
www.gatewaynorway.no

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Contents
 The Norwegian Offshore Sector
 Incl. “ Offshore – Wind ”
 The Norwegian Maritime Sector

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Norway: status January 2018
• Unemployment rate: about 2,5%
• Norwegian seafood in 2017:
• NOK 100 billions (= over EUR 10 billions)
• 2nd largest seafood exporter in the world.
• Oil price: around USD 70,- / barrel (Brent)
• 10.000 new oil jobs – West-Norway
• All indicators are showing: up, up, UP!

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The Norwegian Offshore Sector
What´s new here? News etc.
Norway:
- The 3rd largest gas exporter in the world (covers more than 20 % of gas consumption in Europe)
- The world´s top oil producer no. 13 = Norway.

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Offshore sector: OIL & GAS
– After 3 years of “crisis” 2/3 of oil related companies
are planning to increase new employment in 2018.
– In 2017: new development plan applications for NOK
125 billions; equal to 100.000 full time yearly
employees.
– Njord, Bauge, Ærfugl, Vallhall, Skoful, Ekofisk, Yme,
Fenja, Snorre
– Full speed up to the year 2020!

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Offshore wind (floating)
–Statoil opened floating Hywind Pilot Park in
Scotland
–Offshore wind capacity up / price per kWh
down
–Norwegian companies / cluster looking for
co-operation partners also in Finland

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The Norwegian Maritime Sector
MARKET UPDATE
Bad news, good news, hot news, rumours, etc.

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Bad news:
– Economical situation / results -
YARDS:
– Middle size /large yards delivering
negative results: Vard, Ulstein, Kleven.
– Smaller yards are performing very
good!

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Good news:
- Number of shipyards: about 40 (new building yards).
- Number of vessels ordered: about 170 vessels (starting from about 15
meters workboats).
- More new orders signed from 2017 to 2018.
- Next generation expedition ships: a new Norwegian shipbuilding niche.
– Norwegian government supporting the yard industry: 3 coastal patrol
vessels to be built. Price of one vessel: estimation - NOK 2 billion.
– Vard Langsten AS
– 28 % of new buildings go to fish farming

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Post “crisis” activity at Norwegian yards
– Offshore mining
– Offshore wind
– Pleasure yachts (super yachts)
– Fishing boats
– Fish farming service boats
– Ferries
– Small cruise vessels

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More good news / new news:
-Norwegian government support
of the yards in Norway:
-Guarantees available now also in Norway at
the Norwegian yards.

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ORDER BOOK SITUATION –
SELECTED SHIPYARDS

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More good news / new news:
-Havyard
- Shipyard in Leirvik
- Sølvtrans order the world´s largest live fish carrier from Havyard. Contract price: over EUR
55 mill.
- 2 x trawler – France Pélagique (Cornelis Vrolijk)
- 8 x ferries for Fjord 1 (low emission; hybrid / electrical)

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More good news / new news:
-Kleven yard - Ulsteinvik:
- 4 x AHTS – Mærsk serie
- 2 + 2 small artic hybrid cruisers – Hurtigruten
- Fishing vessel – Gitte Henning
- 1 x 100m Explorer ship (unknown owner)
- 1 x Diamond mining vessel (De Beers Marine Namibia)
-Myklebust yard:
- Various fishing industry vessels: trawlers, fish harvesting vessels, live fish
carriers, ferry

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More good news / new news:
-Ulstein yard - Ulsteinvik:
- The world’s largest hybrid ship – Color Line
- X-Bow Super yacht – Unknown owner
- 2 x different SOV (Service Operational Vessel for offshore wind maintenance)
- 1 + 2 Explorer vessels (Lindblad Expeditions-National Geographic

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More good news / new news:
-Vard:
- 5 yards in Norway: Aukra, Brattvaag, Breivik, Langsten, Søviknes.
- 7 small trawlers & other fish, fish farming vessels
- 2 x expedition cruise vessel – Hapaq-Lloyd Cruises
- 4 x expedition cruise vessel – Ponant Quartet
- 1 x electrical hybrid cruise icebreaker with LNG propulsion – Ponant Quartet
- Ferries – Norwegian fjords incl. 100 % electrical ferry to Boreal
- Supply vessels – earlier ordered vessels
- REV (Research Expedition Vessel)

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More good news / new news:
-FOSEN YARD:
- AQUATRAZ – Pilot: fish farm
- Diameter: 160 meters
-WESTCON:
- Weston is now the largest shareholder in Aquafarm

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Hot news:
Norway: the place to be in
2018
-Nor-Fishing 2018:
- Trondheim: 21.-24.08.2018
-ONS 2018: “ Innovate ”
- Stavanger 27.-30.08.2018

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Rumours:
When in Rome, do as the Roman´s do!
REMEMBER!
•Norwegian business culture and rules & regulations.

21. Gateway Norway AS
Strandgata 165
5525 Haugesund
Norway
Tel.: +47 930 19 616
E-mail: jaakko@gatewaynorway.no