PROPOSED DISPOSAL OF THE ENTIRE ISSUED AND PAID-UP SHARE CAPITAL OF THE ICE CLASS VESSEL COMPANIES (AS DEFINED BELOW) BY THE WHOLLY-OWNED SUBSIDIARIES OF BUMI ARMADA, NAMELY BUMI ARMADA SINGAPORE HOLDINGS PTE. LTD. (“BASH”), BUMI ARMADA OFFSHORE CONTRACTOR LIMITED AND BUMI ARMADA RUSSIA HOLDINGS LIMITED (COLLECTIVELY, THE “SELLERS”) TO AC MANAGEMENT COMPANY LIMITED (“AC MANAGEMENT”) AND K.N. HOLDING LIMITED LIABILITY COMPANY (“K.N. HOLDING”) (COLLECTIVELY, THE “PURCHASERS”) (“PROPOSED DISPOSAL”)

We refer to our announcement dated 19 January 2022 with respect to the Proposed Disposal ("Original Announcement") and wish to further clarify the matters below. Unless the context otherwise requires, capitalised terms used below shall have the meanings given to them in the Original Announcement.

1. Basis of the Sale Consideration of USD44.5 million

The Sale Consideration was derived based on discounted future cash flows, taking into consideration cashflows from the previous contracted firm charter periods for the Ice Class Vessels which were to expire in 2026, as well as potential subsequent charter renewals by the charterer.

2. Justification for the Sale Consideration

The Group had assessed the risks of its Offshore Marine Services ("OMS") business and had decided to monetise such assets since financial year 2019. The Ice Class Vessels were part of the Group’s Offshore Support Vessel ("OSV") business, which in turn is one of the divisions within the OMS business segment.

The Group has, since 2019, disposed of 40 OSVs, including the Ice Class Vessels. The Group currently has 4 remaining OSVs.

The decision to sell the Ice Class Vessel Companies is consistent with the Group’s strategic plan to exit the OMS business segment.

The net assets of the Ice Class Companies take into consideration certain key estimates, one of which being the assumption that the Ice Class Vessels will continue to operate beyond the contracted firm charter period (even though this may not always be the case in reality), but does not reflect the discounted future cash flows of these companies.

The Group is of the view that the Sale Consideration fairly reflects the discounted future cash flows which the Group would have generated from the Ice Class Vessels disposed.

Although the Proposed Disposal may have been transacted at a loss, the Group is also of the view that it is justified on the basis that key resources, namely the capital raised from the sale, and management bandwidth, can be more productively deployed when focused exclusively on the Group’s core business.

This announcement is dated 7 February 2022.