DOF ASA

Quarterly Report • Aug 25, 2022

Index

Directors' report	4
Accounts	12
Consolidated statement of profit or loss	12
Consolidated statement of balance sheet	13
Consolidated statement of cash flows	14
Consolidated statement of equity	15
Notes to the accounts	16
Note 1 General	16
Note 2 Management reporting	17
Note 3 Segment information	18
Note 4 Operating revenue	18
Note 5 Tangible assets	19
Note 6 Contract costs	19
Note 7 Investment in joint ventures and associates 20
Note 8 Cash and cash equivalent	20
Note 9 Interest bearing liabilities	21
Note 10 Transaction with related parties	23
Note 11 Events after balance date	23
Note 12 Share capital and shareholders	24
Note 13 Performance measurements definitions	25
Supplemental information	26
Consolidated statement of profit or loss	26

Consolidated statement of profit or loss	26
Consolidated statement of balance sheet	27
Consolidated statement of cash flows	27
Key figures	27

Contacts Mons S. Aase, CEO Tel, 91661012

Hilde Drønen, CFO Tel, 91661009

Report distribution & webcast The Q2 2022 financial report for DOF ASA is to be published on 25th of August, 2022. A financial webcast will be held on the day of publication at 08:30 (CET) and will be available on the Company website: www.dof.com. All materials, including an investor presentation, will be available on the same website.

The interim consolidated financial statements have not been subject to audit or review.

Directors' report

2nd Quarter 2022

Key figures

	Management reporting		Financial reporting
(MNOK)	Q2 2022	Q2 2021	Q2 2022	Q2 2021
Operating revenue	2 510	2 003	2 172	1 716
Net gain on sale of tangible assets	32	31	32	31
EBITDA	848	680	626	463
Depreciation	-346	-313	-267	-246
Impairment	0	-218	-	-120
EBIT	501	148	359	97
Net interest costs	-336	-251	-283	-204
Net currency and derivatives	-1 410	782	-1 343	706
Profit (loss)	-1 313	580	-1 313	580
NIBD (Net interest bearing debt)	21 961	19 738	18 354	16 437
NIBD (Net interest bearing debt) excluded effect of IFRS 16	21 758	19 454	18 150	16 153
Equity ratio	-7%	-5%	-9%	-6%

Directors' report

Operations

• Average utilisation of the fleet in 2nd quarter was 85% (80%).
• Good performance in the subsea segment, especially in Brazil and Atlantic regions
• Increased activity in the North Sea OSV market.
• Stable operations within the PSV and AHTS segments.
• The total current fleet includes 55 vessels (incl. vessels on management or hired in):
  • › 15 AHTSs, 11 PSVs and 29 Subsea vessels;
  • › Four older vessels sold since year-end (two delivered in the quarter).

Finance

• In June the Group signed a Restructuring Agreement with the secured lenders and a group of bondholders representing 40% of the total outstanding bonds, for the purpose of securing a longterm financial solution and maintaining as going concern, where the following main terms have been agreed:
  • › Conversion of NOK 5.7 billion in debt into equity across all major silos within the Group (DOFCON JV excluded), whereas the holders of current shares will hold 4% of the shares after the conversion;
  • › Consolidation of most bilateral facilities at DOF Subsea Group in a single syndicated loan and refinancing of the DOF Rederi Fleet loan after conversion of debt;
  • › Amended terms of the Norskan financing including a split in guaranteed (approx. 70%) and unguaranteed tranches on the BNDES facilities;
  • › The Restructuring Agreement remains to be approved by the bondholders in DOF Subsea AS and the shareholders in the Company. The standstill arrangements will continue until completion of the restructuring within the final deadline on 31 October 2022.
• High unrealised currency loss on long-term debt due to a significant strengthened USD to BRL and NOK in the period.

Backlog

• Order intake NOK 4.5 billion in the 2nd quarter.
• Current backlog is NOK 19 billion (NOK 13.2 billion), of which DOFCON JV backlog represents NOK 5.4 billion. After balance date three vessels have been awarded contracts with Petrobras, at a gross value of USD 253 million.

Key ESG (Environmental, Social, & Governance) information

The ESG figures, where appropriate, are shown in comparison with previous year, as rolling average, or as running numbers. The dashboard contains results from key, non-financial, targets established in DOF and quarter over quarter trends are indicated with trend symbols. Read more about how we selected these targets in our integrated annual report 2021.

Key The trend markers are in relation to the previous quarter. See DOF ASA financial report Q1 2022 to compare figures.

Positive trend in result Negative trend in result No significant change in result

Q2 Operations

The Q2 operational result per segment is as follows;

(MNOK)	PSV	AHTS	Subsea	Total
Operating revenue	119	358	2 033	2 510
Net gain on sale of tangible assets	32	-	-	32
Operating result before depreciation
and impairment - EBITDA	53	122	673	848
Depreciation	24	66	257	346
Impairment	-	-	-	-
Operating result - EBIT	29	56	416	501
EBITDA margin	44%	34%	33%	34%
EBIT margin	24%	16%	20%	20%

The main part of the Group's PSV and AHTS fleet operates on time charter (TC) contracts or in the spot market, while the Subsea fleet is partly utilised on TC contracts or on project contracts. The global COVID-19 situation, including travel restrictions and outbreaks onboard vessels, was challenging in the start of the year and has further impacted the results in 2nd quarter.

PSV & AHTS

The PSV fleet includes operation of 11 vessels at end of 2nd quarter, of which one vessel is owned via a minority share. The majority of the fleet operates on firm contracts in the North Sea. The average utilisation of the PSV fleet has been 84% versus 68% last year. Two vessels have been sold and delivered to new owners in the quarter; Skandi Foula (built 2002) and Skandi Sotra (built 2003). The sold vessels were the oldest in the fleet and not considered as strategic assets for the Group. The activity in the North Sea market continued to improve during the quarter with increased rates both in the term- and spot market. By end of the quarter the Group had two vessels operating in Guyana and one vessel in Australia. The rest of the fleet operated in the North Sea.

The AHTS fleet includes operation of 15 vessels including four vessels on management. The majority of the fleet operates in Brazil, and the remaining fleet (six vessels) are operating in the North Sea and in the Asia-Pacific region. The average utilisation for the AHTS fleet (owned) has been 82% versus 86% last year. The activity has generally been high both in the North Sea and in Brazil, but the utilisation has been impacted by off-hire due to class dockings and repairs especially in Brazil. The tender activity in Brazil has remained high, which has resulted in the award of multiple contracts during the quarter. In May the Group was awarded five contracts with Petrobras for the Skandi Angra, Skandi Urca, Skandi Paraty, Skandi Fluminense and Skandi Iguaçu. All contracts include hire of vessel and ROVs to be operated by DOF Subsea. In the North Sea the Group has operated two vessels in the spot market of which the Skandi Iceman started on the Hywind Tampen project with DOF Subsea/ Equinor in May. Skandi Vega further started on a two-year contract with Equinor in May. Most of the AHTS operated by the Group are equipped with ROVs, and the ROV services are performed by DOF Subsea. Parts of the AHTS vessels are frequently used on projects in DOF Subsea.

SUBSEA

By the end of the quarter, the Group operated a fleet of 29 Subsea vessels, including one vessel on management and two vessels hired in from external owners. The majority of the fleet is owned by the subsidiary DOF Subsea AS. The overall utilisation of the owned Subsea fleet was 86% versus 83% in the same period last year. The client of Geosea (built 2002) has exercised a purchase option of the vessel with expected delivery to the new owner in 3rd quarter.

The total revenues from Subsea IMR project contracts amounted to NOK 1,480 million (NOK 1,115 million) in the quarter.

In Asia-Pacific region, the Group has conducted IMR work under two long-term contracts for Shell in the Philippines and in Australia. The two remaining vessels in the region have been working on various construction and IMR projects, mainly in Australian waters. The region has had a slow start to the year, with two vessels undertaking class docking and low project utilisation. Skandi Darwin has during the quarter mobilised for the MPSV contract with Esso Australia. The project activity in the Atlantic region has been high during the quarter especially due to the Hywind Tampen project in the North Sea which include utilisation of multiple vessels including the Skandi Skansen and Skandi Iceman as the core assets. One vessel has continued working as a field support vessel (FSV) with ENI in Angola, and one vessel has been utilised within the offshore wind industry for a key renewable client in the North Sea, and this contract has been extended until end of Q3. The utilisation in the North America region has improved compared to previous quarter and this fleet has conducted IMR and construction projects for key clients in the Gulf of Mexico, in Trinidad and Tobago and in Gabon. In addition, one vessel has continued on a IMR contract in Canada. The region has entered into an agreement for the charter of the Jones Act compliant vessel Chloe Candies for a firm period of one year with two years options with expected commencement in third quarter. In the Brazil region, the Group has operated multiple vessels on a survey and inspection project (PIDF) for Petrobras, and a diving vessel and an IMR vessel both on firm contracts with Petrobras. One vessel has been utilised on a seismic node project in the region. During the quarter the Brasil region has been awarded a contract extension for the PIDF contract. The extensions will demand a fleet of at least three vessels operating for a period of minimum 18 months (until end of 2023). The extension is in direct continuation to the original schedule.

The PLSV fleet has continued to operate on firm contracts and has achieved a utilisation of 92% (96%) in the quarter. In the DOFCON JV, Skandi Niteroi has commenced on a 3-year contract with Petrobras, and Skandi Vitoria has started the mobilisation of a 3-year contract with Petrobras with expected start up during 3rd quarter. TechnipFMC has during the quarter exercised their option for Skandi Africa, and the vessel is firm until February 2024.

Petrobras has extended the contracts and awarded 3-years contracts for the vessels Skandi Chieftain, Skandi Olympia and Skandi Commander. All contracts include vessels and ROVs. The gross value of the extensions and the firm period of the new contracts exceeds USD 253 million.

ESG (Environmental, Social, and Governance) Q2

The Group continued delivery of consistent ESG results in 2nd quarter 2022 when compared to the last two quarters. Occupational health and safety results for the quarter, with a total recordable injury rate of 2.52 per million man-hours is up from last year, however all incidents with a low risk factor and no permanent disabilities. The lost-time injury frequency rate of 0.88 per million man-hours is an improvement from previous year. Within Marine and Subsea service delivery, the operational uptime for vessels was 98.3% in the quarter, and operational uptime for ROV was 99.3%. Regarding Governance, the number of NCRs and audits are stable, although there are small variations. There have been no fines or non-monetary sanctions due to non-compliance.

There have been no significant spills logged in the quarter.

Regarding people, the headcount per end of quarter was 3,904 and absence rate due to sickness had a decrease from 3.8% to 2.6%. There were no data privacy breaches. There has been one harassment case confirmed through investigation in the quarter and the case has now been solved.

During the quarter, two gateway studies have been delivered by the TERRAVERA Foundation in a project to develop a model for vessel life cycle carbon footprint. This model will be built to also include carbon footprints of various components and equipment onboard the vessel, thus providing a more complete overview of a vessel's carbon footprint. Significant progress has also been made during the quarter to prepare for Science-Based Targets related to emissions and a roadmap towards a NetZero future. The software tool Ignite Procurement was used to calculate a tCO2e estimate per transaction for all of DOF's procurement-related spend for 2021, and then classified to the relevant categories of Scope 3.

Financial Reporting Q2 - Highlights

The below figures represent the Group's consolidated accounts based on Financial Reporting.

Profit or Loss
(MNOK)	Q2 2022	Q2 2021
Operating revenue	2 172	1 716
Net gain on sale of tangible assets	32	31
EBITDA	626	463
Depreciation	-267	-246
Impairment	-	-120
EBIT	359	97
Net interest costs	-283	-204
Net currency and derivatives	-1 343	706
Profit (loss)	-1 313	580

The revenue and Ebitda are higher versus last year mainly due to good performance from the subsea regions and a high activity especially in the Atlantic region and in Brazil. The DOFCON JV has achieved stable operations, and a net result of NOK 47 million (NOK 25 million) is included in the Ebitda (see further details on the operational result in Note 2). The gain from sale of assets represents the sale of two PSVs in the quarter. The AHTS segment achieved an Ebitda in line with 2nd quarter last year and the PSV fleet achieved an improved Ebitda versus last year. No impairment has been booked in the quarter. The fair market values of the Group's vessels received from two independent companies have slightly increased in the period.

The net interest costs are NOK -283 million (NOK -204 million). The net loss on currencies and derivatives of NOK -1,343 million (NOK 706 million) mainly represent unrealised currency loss on liabilities from subsidiaries Norskan Offshore Ltda. and the DOF Subsea Group which have the majority of the funding in USD. The USD rate has strengthened significantly towards NOK and BRL in the quarter.

Cash flow from Q2 2022

Cash flow from operating activities

(MNOK)	Q2 2022	Q2 2021
Operating result	359	97
Depreciation and impairment	267	366
Gain (loss) on disposal of tangible assets	-32	-31
Share of net income from associates and joint ventures	-47	-17
Changes in working capital	-49	-292
Exchange rate effects on operating activities	58	57
Cash from operating activities	556	179
Net interest and finance cost, and taxes paid	-93	-69
Net cash from operating activities	464	111

The operational cash flow (after payment of interest and taxes) is NOK 464 million (NOK 111 million) and with less negative impact on changes in the working capital versus last year. The net cash flow from investments was positive by NOK 17 million (NOK -13 million) and include sale of two vessels, a loan repayment from the DOFCON JV and class dockings. The cash flow from finance activities of NOK -474 million (NOK -313 million) represent debt service in Norskan Offshore Ltda, some facilities in DOF Subsea and repayment of loans related to sold vessels.

BALANCE

(MNOK)	30.06.2022	30.06.2021
Non-current assets Current assets Cash and cash equivalents Total assets	15 858 2 770 1 881 20 509	15 064 2 202 1 617 18 883
Equity	-1 830	-1 141
Non-current liabilities	324	319
Current liabilities	22 014	19 705
Total equity and liabilities	20 509	18 883
Net interest bearing debt (NIBD)	18 354	16 437
Net interest bearing debt (NIBD) excl. effect IFRS 16	18 150	16 153

The non-current assets include vessels, ROVs and the DOFCON JV shares which represent book values of NOK 12,333 million (NOK 12,422 million) in vessels and subsea equipment and NOK 3,274 million (NOK 2,439 million) as the shares in the DOFCON JV. The non-current assets represent 76% of the Group's total assets. The increase in value of non-current assets is impacted by a strong USD rate in the period. Due to a weak net result in the quarter especially due to unrealised currency losses, the negative value of the equity has increased to NOK -1,830 million (NOK -1,141 million). Non-current liabilities include longterm lease agreements. All remaining liabilities have been classified as current due to standstill agreements with the lenders and that the restructuring agreement is yet to be approved by the bondholders and the shareholders of the Company (ref. note 9). The interest-bearing debt has further been increased by NOK 1,695 million since year-end 2021 due to a strengthening of the USD towards NOK and BRL.

Financing and Capital Structure

The Group's total interest-bearing debt comprises secured debt of NOK 15,751 million (NOK 14,379 million) and unsecured debt/bonds NOK 4,648 million (NOK 3,741 million). The main portion of the debt is drawn in USD.

Total interest bearing debt 31.12.2021 - 30.06.2022

In June the Group (including the subsidiaries, DOF Subsea Group, DOF Rederi and Norskan Offshore Ltda) signed a restructuring agreement setting out the details and steps for the implementation of a financial restructuring of the Group.

Highlights of the restructuring include:

• A conversion of debt into equity (NOK 5.7 billion) across all major silos within the Group.
• NOK 675 million of the DOFSUB Group bonds will be reinstated into a new bond recovery instrument maturing in December 2027.
• The consolidation of most bilateral facilities at DOFSUB Group to create a single syndicated loan and a refinancing of the reinstated DOF Rederi debt in a new fleet loan.
• Upon completion of the Restructuring, the existing shares in DOF shall represent 4% of the issued shares in DOF, converting bondholders would represent 53.33% of the shares in DOF, whereas the holders of all other conversion liabilities would represent 42.67% of the shares in DOF, in each case on a fully diluted basis.

The Restructuring Agreement has been entered into with a majority of the Group's key stakeholders, including all of the Group's secured finance providers except for BNDES, which has separately indicated that it supports the Restructuring and an ad hoc group of bondholders in DOF Subsea's three bond issues controlling in aggregate approx. 40 per cent of the total outstanding principal amount of the bonds.

With the exception of certain guarantee liabilities, and ring-fenced structures, the surviving debt of the Group shall be reinstated as (i) new facilities with maturity on 9th of January 2026 and generally extended amortisation schedule and reduced interest costs and (ii) new bonds with no cash debt service with maturity on 17th of December 2027.

All existing liabilities of Norskan Offshore Ltda. to the Senior Finance Parties and one individual finance provider shall be split in two and reinstated in the form of guaranteed tranches (which will include the part of such liabilities that are secured by vessel mortgages within ~70% of the agreed fair market value of those vessels) and unguaranteed tranches (including all other parts of such liabilities).

NOK 250 million of the liabilities of Iceman AS under Iceman AS' existing loan shall be reinstated in a new loan facility for which Iceman AS shall be the sole obligor. The other liabilities under Iceman's existing loan shall be converted into equity in the Company.

The DOFCON JV is not part of the standstill agreements and serves its debt according to the terms in the relevant loan facilities. Financial covenants related to the Group's 50% guarantee of the DOFCON loan facilities have been waived.

See further details in the press release issued on 22nd of June 2022.

Shareholders & the Board

By the 30th of June, the share capital was NOK 316 million divided into 316 million shares. The main shareholder Møgster Offshore AS controls 31.6% of the Company.

The Oslo Stock Exchange has decided to remove DOF ASA, ISIN: NO0010070063 from Penalty Bench to Recovery Box which is a special compartment where the Oslo Stock Exchange can place securities where the issuer is subject to circumstances that make pricing of the shares particularly uncertain.

By 30th of June the share price was NOK 1.16/share.

Outlook

The O&G markets have improved as several regions have seen increased activity and the Group has built a substantial backlog so far this year. The war in Ukraine has had an impact on the increased oil and gas prices but has also created instability in the world economy and this situation might have an impact on the markets going forward.

Even though there are signs of market improvements the Group's current financial position is not sustainable, and the equity is lost. The Group has therefore since 2nd quarter 2020 worked on finding a long-term refinancing solution with all stakeholders, including the shareholders, banks and bondholders. The Board is satisfied that the Company and its subsidiaries have signed a restructuring agreement with its creditors which include a comprehensive financial restructuring and address significant amounts of overdue debt that are not refinanceable. The agreed restructuring is vital in order to maintain going concern and create a stable and more efficient financial platform for the Group going forward.

The 2nd quarter report is prepared on the assumption of going concern and the assumption is based on the restructuring agreement and standstill arrangements signed with the majority of the creditors in the Group. The restructuring requires the approval by the Company's existing shareholders and the bondholders in DOF Subsea in order to become effective. The agreed final deadline for the implementation is 31st of October 2022, and in the event that the restructuring is not approved the financial risk will increase significantly for the Group. Hence, the Board would like to emphasize that there is still material uncertainty related to the going concern assumption.

In parallel with the ongoing debt restructuring, the management and Board have continued the focus on operational and cost efficiency improvements and on implementation of new technology and digital solutions. In response to the ongoing shift in the energy markets and future customer requirements, the Group has a strong forward-looking focus on developing strategic opportunities and new lines of business utilising the Group's combined fleet, services, and competence within the limitations of the financial position due to the debt restructuring of the Group.

The Board of Directors of DOF ASA, August 24th, 2022

IR contacts

Mons S. Aase, CEO +47 91661012, mons.aase@dof.com Hilde Drønen, CFO +47 91661009, hilde.dronen@dof.com

DOF ASA 5392 Storebø www.dof.com

Declaration from the Board of Directors and the CEO

We declare that to the best of our knowledge the financial statements for the period 1st of January to 30th of June 2022, are prepared in accordance with IAS34 accounting standards for interim reporting, and that the information provided gives a true and fair view of the company's assets, liabilities, profit or loss, and overall financial position.

We also declare that to the best of our knowledge the first half 2022 report provides a true and fair overview of important events during the accounting period and their influence on the interim account, as well as the most significant risks and uncertainties facing the Group during the following accounting period, in addition to material transactions with related parties.

The Board of Directors of DOF ASA, August 24th, 2022

Hans Olav Lindal Chair of the board

Kathryn Baker Marianne Møgster Deputy Chair of the board

Harald Thorstein

Mons S. Aase CEO

Accounts

2nd Quarter 2022

Consolidated statement of profit or loss

(MNOK)	Note	Q2 2022	Q2 2021	Acc Q2 2022	Acc Q2 2021	2021
Operating revenue	3	2 172	1 716	4 011	2 954	6 356
Operating expenses	6	-1 624	-1 301	-2 992	-2 283	-4 652
Share of net profit from joint ventures and associates	7	47	18	149	69	265
Net gain (loss) on sale of tangible assets		32	31	52	60	109
Operating profit before depreciation and impairment - EBITDA		626	463	1 220	799	2 078
Depreciation	5	-267	-246	-540	-491	-1 030
Impairment	5	-	-120	-93	-251	-412
Operating profit - EBIT		359	97	587	57	636
Financial income		40	11	61	30	403
Financial costs		-323	-216	-680	-457	-1 076
Net realised currency gain (loss)		90	-34	38	-62	-268
Net unrealised currency gain (loss)		-1 434	730	-424	249	-311
Net changes in unrealised gain (loss) on derivatives		-	11	9	21	40
Net financial costs		-1 626	502	-996	-218	-1 212
		-1 267	599	-409	-162
Profit (loss) before taxes						-576
Taxes income (cost)		-45	-19	-80	-60	-54
Profit (loss) for the period		-1 313	580	-489	-221	-630
Profit attributable to
Non-controlling interest Controlling interest		-29 -1 284	-3 582	-28 -461	-7 -214	-23 -607
Earnings per share (NOK)		-4.06	1.84	-1.46	-0.68	-1.92
Diluted earnings per share (NOK)		-4.06	1.84	-1.46	-0.68	-1.92

Consolidated statement of comprehensive income

(MNOK)	Note	Q2 2022	Q2 2021	Acc Q2 2022	Acc Q2 2021	2021
Profit (loss) for the period		-1 313	580	-489	-221	-630
Items that will be subsequently reclassified to profit or loss
Currency translation differences		-145	-272	-399	-71	40
Cash flow hedge		3	13	-5	25	48
Share of other comprehensive income of joint ventures	7	404	18	388	23	115
Items that not will be reclassified to profit or loss
Defined benefit plan actuarial gain (loss)		-	-	-	-	-
Other comprehensive income/loss net of tax		262	-240	-16	-22	202
Total comprehensive income/loss		-1 051	339	-505	-243	-428
Total comprehensive income/loss net attributable to
Non-controlling interest		-29	-3	-28	-7	-23
Controlling interest		-1 021	342	-477	-236	-405

Consolidated statement of balance sheet

(MNOK)	Note	30.06.2022	30.06.2021	31.12.2021
ASSETS
Tangible assets	5	12 333	12 422	12 199
Deferred tax assets		11	12	11
Investment in joint ventures and associated companies	7	3 274	2 439	2 730
Other non-current assets	6	240	191	134
Total non-current assets		15 858	15 064	15 074
Trade receivables		2 152	1 530	1 455
Other current receivables		618	672	625
Current receivables		2 770	2 202	2 080
Restricted deposits		179	154	172
Unrestricted cash and cash equivalents		1 703	1 462	1 625
Cash and cash equivalents	8	1 881	1 617	1 797
Current assets		4 651	3 819	3 877
Total Assets		20 509	18 883	18 951
EQUITY AND LIABILITIES
Paid in equity		316	309	316
Other equity		-2 223	-1 557	-1 733
Non-controlling interests		77	107	91
Total equity		-1 830	-1 141	-1 326
Bond loan	9	-	-	-
Debt to credit institutions	9	-	-	-
Lease liabilities	9	284	257	217
Other non-current liabilities		40	62	38
Non-current liabilities		324	319	255
Current portion of debt	9	20 229	18 311	18 692
Trade payable		1 211	828	895
Other current liabilities		574	565	434
Current liabilities		22 014	19 705	20 021
Total liabilities		22 338	20 024	20 276
Total equity and liabilities		20 509	18 883	18 951

Consolidated statement of cash flows

(MNOK)	Q2 2022	Q2 2021	Acc Q2 2022	Acc Q2 2021	2021
Operating result	359	97	587	57	636
Depreciation and impairment	267	366	633	743	1 442
Gain (loss) on disposal of tangible assets	-32	-31	-52	-60	-109
Share of net income from associates and joint ventures	-47	-17	-149	-69	-265
Changes in trade receivable	-321	-532	-697	-527	-467
Changes in trade payable	262	171	329	153	198
Changes in other working capital	10	68	-9	28	42
Exchange rate effects on operating activities	58	57	112	43	20
Cash from operating activities	556	179	754	367	1 496
Interest received	18	6	28	24	40
Interest and other finance costs paid	-89	-59	-183	-128	-280
Taxes paid	-22	-16	-39	-33	-62
Net cash from operating activities	464	111	560	230	1 194
Payments received for sale of tangible assets	76	76	109	173	172
Purchase of tangible assets	-203	-142	-252	-259	-612
Purchase of contract costs	-19	-64	-45	-116	-135
Payment of acquisition, net of cash	-	-	-	-	26
Purchase of shares	-6	-	-6	1	1
Net cash from non-current receivables	136	117	230	135	267
Net cash from investing activities	-17	-13	35	-66	-280
Proceeds from borrowings	-	2	-	3	7
Repayment of borrowings	-474	-313	-679	-458	-1 010
Net cash from financing activities	-474	-311	-679	-454	-1 003
Net changes in cash and cash equivalents	-27	-214	-83	-291	-88
Cash and cash equivalents at the start of the period	1 784	1 770	1 797	1 880	1 880
Exchange gain/loss on cash and cash equivalents	125	61	168	27	5
Cash and cash equivalents at the end of the period	1 882	1 617	1 882	1 617	1 797

Restricted cash amounts to NOK 179 million (NOK 154 million) and is included in the cash. Changes in restricted cash is reflected in the cash flow.

The Group has standstill agreements with majority of the lenders and no interest and instalments have been paid during standstill period to these lenders.

Restricted cash consists of cash only available for specific purposes. A portion of restricted cash serves as security for outstanding debt following enforcements of account pledges. Some lenders have exercised their right to set off such cash balances toward the outstanding loans. The Group has therefore chosen to present all restricted cash serving as security for loans, net of debt to credit institutions.

For further information, please see note 8 "Cash and cash equivalents".

Consolidated statement of equity

				Other equity
	Paid-in	Other contributed	Other eq uity - Retained	- Currency translation	Other equity - Cash flow	Total other	Non controlling
(MNOK)	capital	capital	earnings	differences	hedge	equity	interest	Total equity
Balance at 01.01.2022	316	-	-2 436	793	-91	-1 734	91	-1 326
Result (loss) for the period			-461			-461	-28	-489
Other comprehensive income/loss			388	-399	-5	-16	-	-16
Total comprehensive income for the period	-	-	-73	-399	-5	-477	-28	-505
Changes ownership non-controlling interest			-14			-14	14	-
Total transactions with the owners	-	-	-14	-	-	-14	14	-
								-
Balance at 30.06.2022	316	-	-2 523	395	-96	-2 224	77	-1 830
Balance at 01.01.2021	309	75	-2 012	754	-139	-1 322	114	-898
Result (loss) for the period			-214			-214	-7	-221
Other comprehensive income/loss			28	-71	21	-22	-	-22
Total comprehensive income for the period	-	-	-186	-71	21	-236	-7	-243
Changes in non-controlling interest						-		-
Total transactions with the owners	-	-	-	-	-	-	-	-
Balance at 30.06.2021	309	75	-2 198	683	-118	-1 558	107	-1 141

Key figures

		Q2 2022	Q2 2021	2021
EBITDA margin ex net gain on sale of vessel	1	29%	25%	31%
EBITDA margin	2	30%	27%	33%
EBIT margin	3	15%	2%	10%
Profit per share	4	-4.06	1.84	-1.92
Return on net capital	5	-27%	-19%	-48%
Equity ratio	6	-9%	-6%	-7%
Net interest bearing debt		18 354	16 437	16 675
Net interest bearing debt excl. effect of IFRS 16		18 150	16 153	16 499
Number of shares		316 456 167	308 962 779	316 456 167
Potential average number of shares		316 456 167	316 456 167	316 456 167
Potential number of shares		316 456 167	316 456 167	316 456 167

1) Operating profit before depreciation excluded net gain on sale of vessel in percent of operating income.

2) Operating profit before depreciation in percent of operating income.

3) Operating profit in percent of operating income.

4) Result /potential average no. of shares. 5) Result incl non-controlling interest/total equity.

6) Total equity/total balance.

Notes to the accounts counts

2nd Quarter 2022

Notes to the ac-

Note 1 General

DOF ASA (the "Company") and its subsidiaries (together, the "Group") own and operate a fleet of PSV, AHTS, subsea vessels and service companies offering services to the subsea market worldwide.

The Company is a public limited company, which is listed on the Oslo Stock Exchange and incorporated and domiciled in Norway. The head office is located at Storebø in the municipality of Austevoll, Norway.

These condensed interim financial statements were approved for issue on the 24th of August 2022. These condensed interim financial statements have not been audited.

Basis of preparation

This Financial Report has been prepared in accordance with IAS 34, 'Interim financial reporting'. The Financial Report does not include all the information and disclosure required in the annual financial statements, and should be read in conjunction with the Group's Annual Report for 2021.

In accordance with IAS 1.25, the Board of Directors confirms that the financial statements have been prepared under the assumption of going concern. The assumption is based on the restructuring agreement and standstill arrangements signed with the majority of the creditors in the Group. The restructuring requires the approval by the Company's existing shareholders and the bondholders in DOF Subsea in order to become effective. The agreed final deadline for the implementation is 31st of October 2022, and in the event that the restructuring is not approved the financial risk will increase significantly for the Group. Hence, the Board would like to emphasize that there is still material uncertainty related to the going concern assumption.

Without implementation of a restructuring agreement, the Group can no longer present financial statements on the assumption of going concern. If the Group can not be treated as going concern, the valuation of the Groups assets will be further revised and will result in significantly impairment of the Group's assets.

Estimates

The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing these condensed interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31st of December 2021, with the exception of changes in estimates that are required in determining the provision for income taxes.

Note 2 Management reporting

The reporting below is presented according to internal management reporting, based on the proportional consolidation method of accounting of jointly controlled companies. The bridge between the management reporting and the figures reported in the financial statement is presented below.

RESULT	2nd Quarter 2022				2nd Quarter 2021
(MNOK)	Management reporting	Reconciliation to equity method	Financial reporting	Reconciliation Management to equity reporting method		Financial reporting
Operating revenue	2 510	-338	2 172	2 003	-287	1 716
Operating expenses	-1 693	69	-1 624	-1 347	46	-1 301
Net profit from associated and joint ventures	-	47	47	-7	24	18
Net gain on sale of tangible assets	32	-	32	31	-	31
Operating profit before depreciation and impairment - EBITDA	848	-222	626	680	-217	463
Depreciation	-346	80	-267	-313	68	-246
Impairment	-	-	-	-218	98	-120
Operating profit - EBIT	501	-142	359	148	-51	97
Financial income	37	3	40	6	5	11
Financial costs	-373	50	-323	-257	42	-216
Net realised gain/loss on currencies	92	-2	90	-32	-2	-34
Net unrealised gain/loss on currencies	-1 502	68	-1 434	804	-74	730
Net changes in fair value of financial instruments	-	-	-	11	-	11
Net financial costs	-1 746	119	-1 626	531	-29	502
Profit (loss) before taxes	-1 245	-23	-1 267	679	-80	599
Taxes	-68	23	-45	-99	80	-19
Profit (loss)	-1 313	-	-1 313	580	-	580

RESULT		YTD 2nd Quarter 2022		YTD 2nd Quarter 2021
(MNOK)	Management reporting	Reconciliation to equity method	Financial reporting	Management reporting	Reconciliation to equity method	Financial reporting
Operating revenue	4 684	-673	4 011	3 517	-563	2 954
Operating expenses	-3 121	129	-2 992	-2 394	111	-2 283
Net profit from associated and joint ventures	-	149	149	-11	79	69
Net gain on sale of tangible assets	52	-	52	60	-	60
Operating profit before depreciation and impairment - EBITDA	1 615	-395	1 220	1 172	-373	799
Depreciation	-699	159	-540	-630	138	-491
Impairment	-93	-	-93	-349	98	-251
Operating profit - EBIT	823	-236	587	193	-136	57
Financial income	55	6	61	12	18	30
Financial costs	-773	93	-680	-535	78	-457
Net realised gain/loss on currencies	43	-5	38	-62	-	-62
Net unrealised gain/loss on currencies	-406	-18	-424	270	-20	249
Net changes in fair value of financial instruments	9	-	9	21	-	21
Net financial costs	-1 073	76	-996	-295	76	-218
Profit (loss) before taxes	-250	-160	-409	-102	-60	-162
Taxes	-239	160	-80	-120	60	-60
Profit (loss)	-489	-	-489	-221	-	-221

BALANCE		30.06.2022			30.06.2021
		Reconciliation
	Management	to equity	Financial	Management	Reconciliation to equity	Financial
(MNOK)	reporting	method	reporting	reporting	method	reporting
ASSETS
Tangible assets	18 967	-6 635	12 333	18 146	-5 724	12 422
Deferred taxes	310	-299	11	341	-329	12
Investment in joint ventures and associated companies	12	3 262	3 274	7	2 431	2 439
Other non-current assets	260	-21	240	191	1	191
Total non-current assets	19 550	-3 692	15 858	18 685	-3 621	15 064
Receivables	3 127	-357	2 770	2 165	37	2 202
Cash and cash equivalents	2 240	-359	1 881	2 135	-518	1 617
Total current assets included asset held for sale	5 367	-716	4 651	4 299	-481	3 819
Total assets	24 917	-4 408	20 509	22 985	-4 102	18 883
EQUITY AND LIABILITIES
Equity	-1 830	-	-1 830	-1 141	-	-1 141
Non-current liabilities	3 885	-3 561	324	3 757	-3 438	319
Current liabilities	22 862	-847	22 014	20 369	-664	19 705
Total liabilities	26 746	-4 408	22 338	24 126	-4 102	20 024
Total equity and liabilities	24 917	-4 408	20 509	22 985	-4 102	18 883
Net interest bearing liabilities excluded effect of IFRS 16	21 758	-3 608	18 150	19 454	-3 301	16 153

Note 3 Segment information - management reporting

	Q2 2022				YTD Q2 2022
2nd Quarter 2022	PSV	AHTS	Subsea	Total	PSV	AHTS	Subsea	Total
Operating revenue	119	358	2 033	2 510	230	675	3 779	4 684
Net gain on sale of tangible assets	32	-	-	32	43	-	9	52
Operating result before depreciation and impairment - EBITDA	53	122	673	848	70	233	1 312	1 615
Depreciation	24	66	257	346	51	127	521	699
Impairment	-	-	-	-	-	93	-	93
Operation result - EBIT	29	56	416	501	19	13	791	823
	Q2 2021				YTD Q2 2021 *)
2nd Quarter 2021	PSV	AHTS	Subsea	Total	PSV	AHTS	Subsea	Total
Operating revenue	111	283	1 610	2 003	212	528	2 778	3 517
Net gain on sale of tangible assets	2	-	29	31	31	-	29	60
Operating result before depreciation and impairment - EBITDA	12	129	539	680	52	241	878	1 172
Depreciation	26	50	237	313	54	100	476	630
Impairment	25	26	167	218	37	35	278	349
Operation result - EBIT	-40	53	134	148	-38	106	125	193

*) Figures for 2021 includes reallocation of revenue between the segments.

Note 4 Operating revenue

The Group's revenue from contracts with customers has been disaggregated and presented in the table below;

Operating revenue	Q2 2022	Q2 2021	Acc Q2 2022	Acc Q2 2021	2021
Lump sum contracts	112 2 060	30 1 686	136 3 875	54 2 900	117
Day rate contracts Total	2 172	1 716	4 011	2 954	6 239 6 356

Note 5 Tangible assets

2022	Vessel and periodical maintenance	ROV	Operating equipment	Asset "Right-of-use"	Total
Book value at 01.01.2022	11 256	511	214	218	12 199
Addition	214	20	20	11	265
Reclassification	-1	-	-1		-2
Disposal	-116			-1	-117
Depreciation	-422	-60	-31	-26	-539
Impairment loss	-93				-93
Currency translation differences	598	3	8	11	620
Book value at 30.06.2022	11 436	475	210	213	12 333
2021	Vessel and periodical maintenance	ROV	Operating equipment	Asset "Right-of-use"	Total
Book value at 01.01.2021	11 821	533	226	264	12 844
Addition	209	37	15	-1	260
Disposal	-92				-92
Depreciation	-375	-62	-30	-25	-491
Impairment loss	-251				-251
Currency translation differences	148	-	1	3	152
Book value at 30.06.2021	11 461	508	213	241	12 422

Disposal

The vessels Skandi Rona, Skandi Sotra and Skandi Foula are sold and delivered to new owner in the first half 2022. The current charterer of Geosea has exercised its purchase option with delivery during 3rd quarter 2022. The vessel is derecognised from tangible assets and reclassified as financial lease.

Total gain on sale and derecognition of tangible assets amounts to NOK 52 million.

Right-of-use asset

Net booked value of right-of-use assets at the 30th of June 2022 consists of property with NOK 211 million (NOK 235 million) and operating equipment with NOK 2 million (NOK 6 million).

Impairment

Impairment tests performed for Q2 2022 have resulted in no impairment of vessels this quarter. Accumulated impairment first half 2022 amounts to NOK 93 million. No impairment has been done in joint ventures in the first half 2022.

The fair market values have slightly increased for the majority of the fleet during the first half 2022. There are signs of improved markets in several regions and increased demand for offshore vessels within the offshore wind segment. It is however still too early to conclude on a market recovery. Hence, future earnings and asset values are difficult to forecast. A continuing weak market will further increase the risk of lower earnings for the Group and put more pressure on the Group's liquidity position. If a robust long-term refinancing solution is not achieved and the Group cannot be treated as a going concern, the valuation of the Group's assets may be further revised and will result in significantly impairments of the Group's assets.

Sensitivity analysis of impairment

The valuation of the vessels are sensitive for changes in WACC, earnings and USD/NOK rate. The Group has applied a nominal WACC after tax in the range of 8.4 - 9.3 %. Negative changes in WACC with 50 basis points will result in an additional impairment of the vessels with approximately NOK 18 million. Negative effect on net future cash flows with 20% will result in an additional impairment of the vessels with approximately NOK 0.7 billion. The impairment tests are USD sensitive and a drop in USD/NOK with 20% will result in an additional impairment of NOK 376 million given no change in other assumptions. In addition a negative effect on net future cash flows with 20% will result in an impairment of the vessels in joint ventures with NOK 379 million.

Note 6 Contract costs

	30.06.2022	30.06.2021	31.12.2021
Net booked value 01.01.	126	93	93
Additions	46	121	134
Reclassification to tangible assets		-5	-4
Amortisation	-63	-37	-97
Impairment
Currency translation differences	17	1	-1
Net booked value closing balance	125	173	126

Note 7 Investment in joint ventures and associates

The Company's investment in associates and joint ventures as of 30.06.2022;

Joint ventures	Ownership
DOFCON Brasil AS with subsidiaries	50%
KDS JV AS	50%
Associated companies
Skandi Aukra AS	34%
Semar AS	42%

Effect of application of IFRS 11 on investments in joint ventures;	30.06.2022	30.06.2021	31.12.2021
Opening balance 01.01	2 730	2 336	2 336
Addition	6	-	-
Profit (loss)	149	69	265
Profit (loss) through OCI	388	23	115
Dividend			-1
Negative value on investments reallocated to receivable	1	11	15
Closing balance	3 274	2 439	2 730

Note 8 Cash and cash equivalent

	30.06.2022	30.06.2021	31.12.2021
Restricted cash	179	154	172
Unrestricted cash and cash equivalent	1 703	1 462	1 625
Total cash and cash equivalent	1 881	1 617	1 797

Restricted cash consist of cash only available for specific purposes. A portion of this cash serves as security for outstanding debt following enforcements of account pledges. Some lenders have exercised their right to set off such cash balances toward the outstanding loans. The Group has therefore chosen to present restricted cash serving as security for loans, net of debt to credit institutions.

Cash pool arrangement

The Group has cash pooling arrangements whereby cash surpluses and overdrafts residing in the Group companies bank accounts are pooled together to create a net surplus. The liquidity is made available through the cash pooling for the Companies in the Group to meet their obligations. The bank accounts in the cash pool consists of accounts in various currencies that on a currency basis can be in surplus or overdraft. Only the master accounts (nominated in NOK), in each of the cash pools hierarchies are classified as bank deposits and included in the table above. The total cash pool can never be in net overdraft. No overdraft facilities are connected to the cash pools.

Surplus cash transferred to the Group's cash pool will be available at all times to meet the Group's financial obligations at any time. Some subsidiaries are not part of the cash pool structure. Surplus cash in these companies will be available for the rest of the Group through loans or dividends. Total cash in these subsidiaries are NOK 385 million and are included in unrestricted cash and cash equivalents.

Note 9 Interest bearing liabilities

Financing

The Group has since 2nd quarter 2020 worked on finding a long-term solution with all stakeholders, including the shareholders, banks and bondholders..

In June 2022 the Group (including the subsidiaries, DOF Subsea Group, DOF Rederi AS and Norskan Offshore Ltda) signed a restructuring agreement setting out the details and steps for the implementation of a financial restructuring of the Group.

Highlights of the restructuring include:

• * A conversion of debt to equity (NOK 5.7 billion) across all major silos within the Group.
• * NOK 675 million of the DOFSUB Group bonds will be reinstated into a new bond recovery instrument maturing in December 2027.
• * The consolidation of most bilateral facilities of DOFSUB Group to create a single syndicated loan and a refinancing of the reinstated DOF Rederi debt in a new loan.
• * Upon completion of the Restructuring, the existing shares in DOF shall represent 4% of the issued shares in DOF, converting bondholders would represent 53.33% of the shares in DOF, whereas the holders of all other conversion liabilities would represent 42.67% of the shares in DOF, in each case on a fully diluted basis.

The Restructuring Agreement has been entered into with a majority of the Group's key stakeholders, including all of the Group's secured finance providers except for BNDES, which has separately indicated that it supports the Restructuring and an ad hoc group of bondholders in DOF Subsea's three bond issues controlling in aggregate approx. 40 per cent. of the total outstanding principal amount of the bonds.

With the exception of certain guarantee liabilities, and ring-fenced structures, the surviving debt of the Group shall be reinstated as (i) new facilities with maturity on 9th of January 2026 and generally extended amortisation schedule and reduced interest costs and (ii) new bonds with no cash debt service with maturity on 17th of December 2027.

All existing liabilities of Norskan Offshore Ltda. to the Senior Finance Parties and one individual finance provider shall be split in two and reinstated in the form of guaranteed tranches (which will include the part of such liabilities that are secured by vessel mortgages within ~70% of the agreed fair market value of those vessels) and unguaranteed tranches (including all other parts of such liabilities).

NOK 250 million of the liabilities of Iceman AS under Iceman AS' existing loan shall be reinstated in a new loan facility for which Iceman AS shall be the sole obligor. The other liabilities under Iceman's existing loan shall be converted into equity in the Company.

The DOFCON JV is not part of the standstill agreements and serves its debt according to the terms in the relevant loan facilities. Financial covenants related to the Group's 50% guarantee of the DOFCON loan facilities have been waived.

The Group's secured and unsecured debt are, in accordance with IFRS, classified as current debt at the 30th of June 2022. The classification is based on the Group's financial situation.

The main covenants in the loan agreements regarding non-current liabilities to credit institutions are as follows;

DOF ASA

DOF ASA Group shall have a book equity higher than NOK 3,000 million, free cash deposits shall at all times be minimum NOK 500 million excluding DOF Subsea AS (and it's subsidiaries) and market value of the vessels on aggregated level shall at all times be higher than 100% of outstanding secured debt.

DOF Subsea AS

DOF Subsea has the following covenants (based on proportional consolidation method of accounting for joint ventures); the book equity shall be higher than NOK 3,000 million, minimum free liquidity shall at all times be minimum NOK 500 million, value adjusted equity shall be at least 30% and market value vessels shall at all times be at least 110-130% of outstanding secured debt.

The above financial covenants have been waived in standstill agreements for DOF ASA and DOF Subsea AS (excl. the DOFCON JV).

Note 9 Interest bearing liabilities (continued)

At 30th of June 2022 the interest bearing liabilities are as follows;

	30.06.2022	30.06.2021	31.12.2021
Non-current interest bearing liabilities
Bond loan	-	-	-
Debt to credit institutions	-	-	-
Lease liabilities (IFRS 16) *)	284	257	217
Total non-current interest bearing liabilities	284	257	217
Current interest bearing liabilities
Bond loan	3 443	2 560	2 979
Debt to credit institutions	16 589	15 204	15 309
Lease liabilities (IFRS 16) *)	83	93	87
Overdraft facilities	-	5	8
Total current interest bearing liabilities	20 115	17 863	18 383
Total interest bearing liabilities	20 399	18 120	18 601
Net interest bearing liabilities
Other interest bearing assets (sublease IFRS 16)	164	66	129
Cash and cash equivalents	1 881	1 617	1 797
Total net interest bearing liabilities	18 354	16 437	16 675
Net effect of IFRS 16 Lease	203	284	175
Total net interest bearing liabilities excluded IFRS 16 Lease liabilities	18 150	16 153	16 499

*) Lease liabilities are related to right-of-use assets and sub-leases.

Current interest bearing debt in the statement of balance sheet included accrued interest expenses of NOK 114 million. Accrued interest expenses are excluded in the figures above. Accrued interest to credit institutions and bondholders is capitalised on the loans on an ongoing basis. A significant amount is capitalised first half 2022 due to conversion of debt from NOK and CAD to USD.

Reconciliation changes in borrowings

Changes in total liabilities over a period consists of both cash effects (proceeds and repayments) and non-cash effects (amortisations and currency translations effects). In the first quarter the Group has extended the leasing agreement for Skandi Darwin until mid 2025 resulting in lease liabilities by NOK 90 million included in proceeds lease debt below. The following are the changes in the Group's borrowings:

			Non-cash changes
	Balance 31.12.2021	Cash flows	Proceeds lease debt	Debt remission	Proceeds standstill agreement	Amortised loan expenses	Currency and other effects	Balance 30.06.2022
Interest bearing liabilities
Bond loan	2 979				255	1	208	3 443
Debt to credit institutions	15 309	-624	2	-4	426		1 480	16 589
Lease liabilities	304	-47	99				11	367
Overdraft facilities	8	-8						-
Total interest bearing liabilities	18 601	-679	101	-4	681	1	1 699	20 399

Loan divided on currency

At the 30th of June 2022 the liabilites is divided on currencies;

		Balance
	Currency	30.06.2022	Ratio %
NOK		6 203	30%
USD	1 391	13 862	68%
Other currencies		334	2%
Total		20 399	100%

Note 10 Transaction with related parties

Transactions with related parties are governed by market terms and conditions in accordance with the "arm's length principle". The transactions are described in the Annual report for 2021.

There are no major changes in the type of transactions between related parties.

Note 11 Events after balance date

Contract

Petrobras has extended the contracts and awarded 3-years contracts for the vessels Skandi Chieftain, Skandi Olympia and Skandi Commander. All contracts include vessels and ROVs. The gross value of the extensions and the firm period of the new contracts exceeds USD 253 million.

Note 12 Share capital and shareholders

Largest shareholders as of 30.06.2022

Name	No. shares	Shareholding %
MØGSTER OFFSHORE AS	100 007 313	31.60%
BRØNMO, BJARTE	11 116 060	3.51%
BNP PARIBAS SECURITIES SERVICES	9 570 169	3.02%
SANS INVEST AS	3 807 033	1.20%
NORDNET BANK AB	3 517 492	1.11%
DAHL, TORE	3 241 500	1.02%
AVANZA BANK AB	3 045 956	0.96%
EBB HOLDING AS	2 901 097	0.92%
EKREN, GEIR	2 721 514	0.86%
CHAMANSKI, ALEXANDRE	2 615 000	0.83%
HOLDEN, JIM ØYSTEIN	2 533 235	0.80%
HERNESS, BJØRN	2 442 868	0.77%
DP HOLDING AS	2 033 517	0.64%
MOCO HOLDING AS	1 984 419	0.63%
LAWO INVEST AS	1 857 377	0.59%
LUNDBY, IRENE	1 760 631	0.56%
WORKINN, HANS KRISTIAN	1 648 947	0.52%
SOTRA KRAN AS	1 404 750	0.44%
ØRN AS	1 400 000	0.44%
HILDE-MYHREN, ARILD ODIN EUGENE ELTON	1 315 000	0.42%
Total	160 923 878	50.85%
Total other shareholders	155 532 289	49.15%
Total no of shares	316 456 167	100%

Note 13 Performance measurements definitions

DOF ASA financial information is prepared in accordance with international financial reporting standards (IFRS). In addition DOF ASA discloses alternative performance measures as a supplement to the financial statement prepared in accordance with IFRS. Such performance measures are used to provide an enhanced insight into the operating performance, financing and future prospects of the company and are frequently used by securities analysts, investors and other interested parties.

The definitions of these measures are as follows:

Financial reporting – Financial Reporting according to IFRS.

Management reporting – Investments in joint ventures (JV) is consolidated on gross basis in the income statement and the statement of financial position.

EBITDA – Operating profit (earnings) before depreciation, impairment, amortisation, net financial costs and taxes is a key financial parameter. The term is useful for assessing the profitability of its operations, as it is based on variable costs and excludes depreciation, impairment and amortise costs related to investments. Ebitda is also important in evaluating performance relative to competitors.

Operational EBITDA – Ebitda as described above adjusted for gain on sale of tangible assets, according to management reporting.

EBIT – Operating profit (earnings) before net financial costs and taxes.

Interest bearing debt – Total of current and non-current borrowings.

Net interest bearing debt – Interest bearing debt minus current and non-current interest-bearing receivables and cash and cash equivalents. The use of the term "net debt" does not necessarily mean cash included in the calculation are available to settle debts if included in the term.

Debt ratio – Net interest bearing debt divided on total equity and debt.

Utilisation – Utilisation of vessel numbers is based on actual available days including days at yard for periodical maintenance, upgrading, transit or idle time between contracts.

Contract coverage – Number of future sold days compared with total actual available days excluded options.

Contract Backlog – Sum of undiscounted revenue related to secured contracts in the future and optional contract extensions as determined by the client. Contract coverage related to master service agreements (MSA`s) within the CSV segment, includes only confirmed purchase order.

Supplemental information mation

Reporting last 5 quarters

The supplemental information below is presented according to management reporting, based on the proportionate consolidation method. Proportionate consolidation method implies full consolidation for subsidiaries, and consolidation of 50% of the comprehensive income and financial position for the joint ventures.

(MNOK)	Q2 2022	Q1 2022	Q4 2021	Q3 2021	Q2 2021
Operating revenue	2 510	2 174	1 975	2 052	2 003
Operating expenses	-1 693	-1 428	-1 228	-1 228	-1 347
Share of net profit from joint ventures and associates	-	-	-	-3	-7
Net gain (loss) on sale of tangible assets	32	20	5	44	31
Operating profit before depreciation and impairment - EBITDA	848	767	753	865	680
Depreciation	-346	-353	-369	-335	-313
Impairment	-	-93	-119	-42	-218
Operating profit - EBIT	501	321	264	488	148
Financial income	37	18	85	279	6
Financial costs	-373	-400	-390	-309	-257
Net realised gain (loss) on currencies	92	-49	-106	-105	-32
Net unrealised gain (loss) on currencies	-1 502	1 096	-80	-548	804
Net changes in unrealised gain (loss) on derivatives	-	9	7	13	11
Net financial costs	-1 746	673	-484	-671	531
Profit (loss) before taxes	-1 245	995	-219	-182	679
Taxes	-68	-171	-61	54	-99
Profit (loss) for the period	-1 313	824	-281	-128	580
Profit attributable to
Non-controlling interest	-29	1	-6	-10	-3
Controlling interest	-1 284	823	-274	-118	582

Consolidated statement of profit or loss

Supplemental infor-

Consolidated statement of balance sheet

(MNOK)	30.06.2022	31.03.2022	31.12.2021	30.09.2021	30.06.2021
ASSETS
Tangible assets	18 967	18 101	18 052	18 312	18 146
Deferred tax assets	310	291	341	357	341
Investment in joint ventures and associated companies	12	6	6	7	7
Other non-current assets	260	233	133	166	191
Total non-current assets	19 550	18 632	18 532	18 842	18 685
Receivables and other current asset	3 127	2 707	2 190	2 256	2 165
Cash and cash equivalents	2 240	2 258	2 266	2 202	2 135
Current assets	5 367	4 965	4 456	4 458	4 299
Total Assets	24 917	23 597	22 988	23 300	22 985
EQUITY AND LIABILITIES
Paid in equity	316	316	316	316	309
Other equity	-2 223	-1 201	-1 733	-1 520	-1 557
Non-controlling interests	77	105	91	97	107
Total equity	-1 830	-780	-1 326	-1 106	-1 141
Non-current liabilities	3 885	3 547	3 594	3 700	3 757
Current liabilities	22 862	20 829	20 720	20 707	20 369
Total liabilities	26 746	24 376	24 314	24 406	24 126
Total equity and liabilities	24 917	23 597	22 988	23 300	22 985
Net interest bearing liabilities excluded effect of IFRS 16	21 758	19 683	19 754	19 678	19 454

Consolidated statement of cash flows

(MNOK)	Q2 2022	Q1 2022	Q4 2021	Q3 2021	Q2 2021
Net cash from operation activities	671	301	676	670	395
Net cash from investing activities	-280	-41	-257	-187	-167
Net cash from financing activities	-582	-306	-352	-410	-414
Net changes in cash and cash equivalents	-190	-47	68	73	-186
Cash and cash equivalents at start of the period	2 258	2 266	2 202	2 135	2 257
Exchange gain/loss on cash and cash equivalents	172	39	-5	-5	64
Cash and cash equivalents at the end of the period	2 240	2 258	2 266	2 202	2 135

Key figures

	Q2 2022	Q1 2022	Q4 2021	Q3 2021	Q2 2021
EBITDA margin excluded net gain on sale of tangible assets	33%	34%	38%	40%	32%
EBITDA margin	34%	35%	38%	42%	34%
EBIT margin	20%	15%	13%	24%	7%
Profit per share (NOK)	-4.06	2.60	-0.87	-0.37	1.84
Book value equity per share (NOK)	-6.03	-2.79	-4.48	-3.80	-3.95
Net interest bearing debt excluded effect of IFRS 16 (NOK million)	21 758	19 683	19 754	19 678	19 454
Potential average number of shares	316 456 167	316 456 167	316 456 167	316 456 167	316 456 167

DOF ASA

Alfabygget 5392 Storebø NORWAY

Phone: +47 56 18 10 00 management@dof.com

Norway

DOF Subsea AS Thormøhlensgate 53 C 5006 Bergen NORWAY

Phone: +47 55 25 22 00

DOF Subsea Norway AS

Thormøhlensgate 53 C 5006 Bergen NORWAY Phone: +47 55 25 22 00

DOF Management AS Alfabygget 5392 Storebø NORWAY Phone: +47 56 18 10 00 management@dof.com

Angola

DOF Subsea Angola

Belas Business Park-Talatona Edificio Bengo, 1º Andar Sala 106/107, Luanda REPUBLIC OF ANGOLA Phone: +244 222 43 28 58 Fax: +244 222 44 40 68 Mobile: +244 227 28 00 96 +244 277 28 00 95

Argentina

DOF Management Argentina S.A. Peron 315, piso 1, Oficina 6-b 1038 - Buenos Aires ARGENTINA Phone: +54 11 4342 4622 fgarcia@seaworks.com.ar

Australia

DOF Subsea Australia Pty Ltd 5th Floor, 181 St. Georges Tce Perth WA 6000 AUSTRALIA Phone +61 8 9278 8700 Fax: +61 8 9278 8799

DOF Management Australia

5th Floor, 181 St. Georges Tce Perth WA 6000 AUSTRALIA Phone: +61 3 9556 5478

Mobile:+61 418 430 939 management@dof.com

Brazil

NorSkan Offshore Ltda

Rua Lauro Muller 116, 17 andar Torre do Rio Sul - Botafogo Rio de Janeiro, R.J. BRAZIL - CEP: 22290-160 Phone: +55 21 21 03 57 00 Fax: +55 21 21 03 57 17 office@norskan.com.br

DOF Subsea Brasil Serviços Ltda

Rua Fiscal Juca, 330 Q: W2 – L: 0001 Loteamento Novo Cavaleiros Vale Encantado – Macaé/RJ BRAZIL - CEP 27933-450 Phone: +55 22 21 23 01 00 Fax: +55 22 21 23 01 99

Canada

DOF Subsea Canada

26 Allston Street Mount Pearl, Newfoundland CANADA, A1N 0A4 Phone: +1 709 576 2033 Fax: +1 709 576 2500

Singapore

DOF Management Pte Ltd

150 Beach Road #14-01/03 Gateway West 189720 Singapore Phone: +65 65602338 management@dof.com

DOF Subsea Asia Pacific Pte Ltd

150 Beach Road #14-01/03 Gateway West 189720 Singapore Phone: +65 6561 2780

UK

DOF (UK) Ltd Horizons House, 81-83 Waterloo Quay Aberdeen, AB11 5DE UNITED KINGDOM

Phone: +44 1224 586 644 Fax: +44 1224 586 555 info@dofman.co.uk

DOF Subsea UK Ltd

Horizons House 81-83 Waterloo Quay Aberdeen, AB11 5DE UNITED KINGDOM Phone: +44 1224 614 000 Fax: +44 1224 614 001

USA

DOF Subsea USA Inc

5365 W. Sam Houston Parkway N Suite 400 Houston, Texas 77041 USA Phone: +1 713 896 2500 Fax: +1 713 726 5800

DOF ASA Alfabygget 5392 Storebø NORWAY

www.dof.com