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

(Limassol, 25 August 2020) S.D. Standard Drilling Plc (Standard Drilling,
OSE:SDSD) had a negative adjusted EBITDA of USD 1.5 million in the second
quarter of 2020 from the underlying operations of Platform Supply Vessels (PSVs)
(Q2 2019: USD 2.7 million positive), with an utilization of 61% on fully owned
large-sized PSVs (Q2 2019 93%). The reported equity per share is NOK 1.75. 

Standard Drilling reported an operating loss of USD 3.6 million in the second
quarter of 2020 (Q2 2019: Profit USD 4.6 million positive), following unrealized
loss on revaluation of financial assets representing investment held in the PSV
and VLCC markets of USD 7.3 million and realized gain in form of dividend from
investment of USD 3.4 million, constituting net loss from investments of USD 3.9
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 second quarter 2020 of USD 1.5 million (Q2 2019 USD 2.7 million
positive). The utilization of the large-sized PSV’s was 61% in the quarter (Q2
2019 93%). 

“The operating result from the PSV fleet in the second quarter was
disappointing, as expected in the market conditions we have observed. Covid 19
and the turmoil in the oil market are having substantial impact on the PSV
market. It is difficult to state when this will change but we are confident that
markets will have to improve. Until then, with our strong balance sheet with no
debt and a good cash position, 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 37.4 million at the end of second quarter,
including pro-rata ownership of the subsidiaries and investments, up from USD
18.8 million at the end of first quarter 2019. The main reasons for the cash
increase during the second quarter are related to the credit facility secured by
the JV owning the VLSS “Gustavia S” and subsequent distribution to its owners,
as well as a dividend distribution from subsidiary Wanax AS.  

The VLCC Gustavia S, of which SDSD acquired 33,3% share in the first quarter,
completed its maiden voyage in June, and embarked on it second voyage to be
completed end of August. 

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

* Excluding non-recurring cost and dry dock, special survey, maintenance and
repair

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.