DOF ASA

Earnings Release • Aug 25, 2022

Financial Report 2nd quarter for DOF ASA

Financial Report 2nd quarter for DOF ASA

The Group's revenue for 2nd quarter (management reporting) totals NOK 2,510

million (NOK 2,003 million) and EBITDA totals NOK 848 million (NOK 680 million).

The operating profit (EBIT) is NOK 501 million (NOK 148 million), of which

depreciation totals NOK 346 million (NOK 313 million). No impairment in 2[nd]

quarter (NOK 218 million). Net financial cost amounts to NOK 1,746 million (NOK

531 million) including unrealised currency loss of NOK -1,502 million (gain NOK

815 million). The result is a loss of NOK -1,313 million (profit NOK 580

million).

Operations:

· Average utilisation of the fleet in 2[nd] 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 long-term 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

the 31[st] of 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 2[nd] 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.

Please see enclosed 2nd quarter Financial Report 2022.

Webcast is available Thursday, 25th of August at 08:30 on www.dof.com.

Contact:

CEO Mons Aase,     Tel + 47 91 66 10 12

CFO Hilde Drønen, Tel + 47 91 66 10 09

With a multi-national workforce of about 3,800 personnel, DOF ASA is an

international group of companies which owns and operates a fleet of modern

offshore/subsea vessels, and engineering capacity to service both the offshore

and subsea market. With 40 years in the offshore business, the group has a

strong position in terms of experience, innovation, product range, technology

and capacity.

DOF's core businesses are vessel ownership, vessel management, project

management, engineering, vessel operations, survey, remote intervention and

diving operations primarily for the oil and gas sector. From PSV charter to

Subsea engineering, DOF offers a full spectrum of top quality offshore services

to facilitate an ever-growing and demanding industry.

The company's main operation centers and business units are located in Norway,

the UK, the USA, Singapore, Brazil, Argentina, Canada, Angola, and Australia.

DOF ASA is listed on the Oslo Exchange since 1997.