Financial Information:

Operating revenues in the quarter were NOK2,108.6 million, an increase of NOK22.6 million compared with the previous quarter. The revenue for offshore drilling division was NOK2,059.9 million, an increase of NOK31.2 million. Revenue for the engineering and fabrication division was 48.7, a decrease of NOK8.6 million. The increase in revenues within the offshore drilling division is mainly due to higher utilization of Blackford Dolphin and Borgny Dolphin, partly offset by 11 days offhire for Borgsten Dolphin.

Operating costs were NOK657.8 million, a decrease of NOK66.5 million compared with previous quarter. Operating costs within the offshore drilling division decreased by NOK83.6 million. Operating costs within the engineering and fabrication division increased by NOK19.7 million due to contract mix. The decrease in operating costs within the offshore drilling division is partly due to a provision of $5 million in the previous quarter, related to operation in Nigeria in 2007, and lower repair and maintenance cost in the first quarter.

Operating profit before depreciation (EBITDA) was NOK1,450.8. Depreciation and amortization amounted to NOK251.7 million (including NOK35 million related to an impairment of offshore equipment). Operating profit after depreciation (EBIT) was NOK1,199.1 million.

Net financial expenses were NOK52.1 million. The decrease in financial expenses is mainly due to mark-to-market valuation of foreign exchange contracts and interest rate contracts, which gave unrealized losses on foreign exchange contracts and interest rate contracts in previous quarter of NOK253 million.

Profit before tax was NOK1,147 million. Net profit, including an estimated tax charge of NOK32.6 million, was NOK1,114.4 million. Earnings per share were NOK16.8.

The board will propose to the annual general meeting on May 26, 2009 an ordinary dividend payment of NOK10 per share and an extraordinary dividend of NOK15 per share. Subject to approval, the shares will be quoted ex-dividend from May 27, 2009.

Estimated date of payment of dividend is June 10, 2009.

The offshore drilling division reported revenues of NOK 2,059.9 million and an EBITDA of 1,444.3 million.

The engineering and fabrication division reported revenues of NOK48.7 million and an EBITDA of NOK6.5 million.

Operations:

Drilling Division

The group’s offshore fleet consists of two deepwater units and six mid water semi submersible drilling rigs in addition to one accommodation unit. Three of the semi submersible drilling rigs are operating in Norway. Seven out of nine units have longterm contracts.

Norway:

Bideford Dolphin continued operations under the three years drilling program offshore Norway for StatoilHydro ASA. The contract will expire in January 2011. Borgland Dolphin continued operations under a three years drilling contract with StatoilHydro ASA and the other licensees in the Tampen area on the Norwegian Continental Shelf. The contract will expire on January 1, 2010. In August 2008, a four years drilling contract for the unit was entered into with a consortium consisting of eight oil companies and managed by RMN (rig management Norway).

Bredford Dolphin continued operations under a three years drilling contract with AGR and a consortium of licensees on the Norwegian continental shelf. The contract will expire in June 2010.

International

The ultra deepwater drillship Belford Dolphin continued operations under a three years drilling contract with Anadarko, which will expire in April 2010. In November 2007, a three years drilling contract for the unit was entered into with Anadarko in direct continuation with the existing contract. This contract will expire in April 2013. Blackford Dolphin commenced operation under a drilling contract with Tullow Oil on October 10, 2008. After completing the drilling program with Tullow Oil in Ghana, which is estimated to mid May, the rig will commence drilling of one well for Vitol Upstream Ghana Ltd. in Ghana, estimated to be completed late June 2009. Thereafter the unit is scheduled to proceed to India to work for Reliance Industries Ltd. The total length of the contract for the combined operations in Ghana and India is three years.

Borgny Dolphin commenced a five years drilling contract with Petrobras in September 2008. The contract is estimated to expire in September 2013. The unit commenced its five year class renewal survey in the beginning of April 2009.

Byford Dolphin commenced a nine months contract with Senergy in October 2008 which is estimated to end in July 2009. A new three year agreement with BP Exploration Operating Co. Ltd for operation in UK sector of the North Sea, was entered into in October 2008 with commencement in first quarter 2010. The unit is estimated to go through its five year class renewal survey in fourth quarter 2009, prior to commencement of contract with BP.

Borgsten Dolphin commenced a nine months drilling contract with Maersk in September for operation in the UK sector of the North Sea. Borgsten Dolphin is available for new contract in July 2009.

Borgholm Dolphin completed a 12 weeks contract with BG Group late January 2009 and thereafter commenced an 8.5 months accommodation contract also with BG Group in the UK sector of the North Sea. The contract will expire in October 2009.

Engineering and Fabrication

The Harland & Wolff shipyard continued operations within engineering, ship repair and shipbuilding. In addition the yard has been engaged in logistics and assembly related to offshore windfarms, a business area with large potential going forward. The company will develop this business segment further and seek to secure contracts for additional windfarm projects.