Dolphin Geophysical: Q3 – Revenues Up to $128.5m USD

QUARTERLY HIGHLIGHTS –

Q3 2014

• Revenues of USD 128.5 million, compared to USD 70.1 million in Q3 2013

• EBITDA of USD 38.2 million (29,7%), compared to USD 26.4 million in Q3 2013

• EBIT of USD 21.1 million (16,4%), compared to USD 17.4 million in Q3 2013

• Net Income of USD 12.2 million, compared to USD 11.6 million in Q3 2013

• The new vessel, Polar Marquis, successfully completed our first powerful solution 14 streamer survey

• The two low-capacity vessels, on short remaining charter, dilute overall profitability in Q3

• West Africa operation, hampered by permitting delays and temporarily reduced operative capacity from 12 to 10 cables

• Order backlog at historically high level of USD 340 million as of 1 November

Q3 2014 SUBSEQUENT EVENTS

• Attractive lease terms offered for complete streamer seismic equipment package for Polar Empress, effectively reducing capital expenditure from USD 70 million to USD 40 million

Atle Jacobsen, Dolphin Group CEO, commented:   “I am very pleased to report record revenues and backlog for the second consecutive quarter. Our growing high-end 3D fleet is delivering according to our expectations and our customers are becoming increasingly aware of the Dolphin fleet’s ability to provide them with cost efficient services through our “powerful solutions” offering. In the quarter we continued to see the impact of a softer and more competitive market, particularly in the 2D and low-end 3D segment. This, together with low Multi-Client late sales, reduced our overall operational margins for the third quarter.

The marine seismic industry will continue to face headwinds for the remaining part of 2014 and into the first part of 2015, however, Dolphin is cautiously optimistic that the increased seasonal demand combined with the effects of reduced supply will pave the way for a more balanced market for the high-end part of the seismic fleet from the second quarter of 2015.”