NOTE: THE COMPANY IS AN INVESTMENT ENTITY AND SHALL NOT CONSOLIDATE ITS
SUBSIDIARIES.

(Limassol, 14 May 2020) S.D. Standard Drilling Plc (Standard Drilling, OSE:SDSD)
had a negative adjusted EBITDA of USD 0.7 million in the first quarter of 2020
from the underlying operations of Platform Supply Vessels (PSVs) (Q1 2019: USD
0.5 million), with an utilization of 61% on fully owned large-sized PSVs (Q1
2019 89%). 

Standard Drilling reported an operating loss of USD 10.6 million in the first
quarter of 2020 (Q1 2019: Profit USD 3 million), following unrealized loss on
revaluation of financial assets representing investment held in the PSV market
of USD 9.5 million. Standard Drilling is an investment entity and shall not
consolidate its subsidiaries. Therefore, the company measures its investments in
PSVs and VLCC based on fair value estimates from reputable independent valuers.
Revenues and EBITDA from chartering out the vessels are not consolidated into,
nor reflected in the financial statements. 

From operation of the PSVs the group had an underlying negative adjusted EBITDA 
in the first quarter 2020 of USD 0.7 million (Q1 2019 USD 0.5 million). The
utilization of the large-sized PSV’s was 61% in the quarter (Q1 2019 89%). 

“The operating result from the PSV fleet in the first quarter was disappointing
but reflects a challenging market following the reduction in oil price and the
outbreak of Covid-19. The unrealized loss on our assets also reflects the market
situation. With no debt and a good cash position we are well prepared for the
continuing challenging period ahead of us and we will continue to focus on cash
preservation.", says Martin Nes, Chairman of the Board of Standard Drilling Plc.

The total cash balance was USD 18.8 million at the end of first quarter,
including pro-rata ownership of the subsidiaries and investments, down from USD
58.2 million at the end of fourth quarter 2019. 

Standard Drilling has invested USD 36.5 million during first quarter, including
working capital, for a 33.3% ownership in a new built VLCC that was delivered
directly from the yard, Daewoo Shipbuilding & Marine Engineering Co in Korea,
end of January 2020. The purchase price of the vessel (“Gustavia S”) was USD 106
million. 

Gustavia S is a 300 000 TDW ECO Design Crude Oil Tanker fitted with scrubber
technology by Wärtsilä. She is currently on a fixed voyage contract until ~mid
June 2020. The estimated TCE is USD 35 000 per day, from delivery of Gustavia S
from the yard until mid of June.

“We are pleased with the performance of Gustavia S since delivery in January.
Having teamed up with an experienced manager and strong co-owners, we believe
that Gustavia S will continue to find work which reflects the positive market
outlook in this segment.”, says Martin Nes.  

In addition to the ownership of the VLCC vessel Gustavia S, Standard Drilling
currently owns 100% of four large-size modern PSVs. Further, the company has
invested in 9 mid-size PSVs, bringing the total fleet of partly and fully owned
vessels to 13 PSVs, including one vessel on a bare-boat contract. The company
has zero debt, cost effective operations and low overhead cost. 
  
ENDS
For additional information, please contact: 
General Manager, Evangelia Panagide at +357 99 77 11 16  
Chairman of the Board, Martin Nes at +47 92 01 48 14

Standard Drilling|www.standard-drilling.com
S.D. Standard Drilling was founded in 2010. In addition to a 33.3% ownership of
a VLCC, the company currently has 100% ownership interest in four large-size
Platform Supply Vessels ('PSVs') and an indirect ownership interest in nine
mid-size PSVs including one vessel on a 1 year bare- boat contract.