DOF Group — M&A Activity 2023

Sep 29, 2023

REINSTATEMENT NON-CORE FLEET DOF REDERI

REINSTATEMENT NON-CORE FLEET DOF REDERI

In the fleet loan facility for DOF Rederi signed on 24 February 2023, the oldest

PSV fleet has been defined as non-core. This implies no debt on this part of the

fleet, and that all surplus cash from the sale of these vessels shall be paid

directly to the lenders with zero repayment of the existing debt.  Currently,

the non-core fleet includes 3 vessels, Skandi Caledonia (built 2003), Skandi

Captain (built 2004) and Skandi Barra (built 2005).

DOF Group ASA and DOF Rederi AS have today agreed to acquire the non-core fleet

from the lenders at a total price of NOK 270 million. NOK 135 million of the

purchase price shall be paid in cash and NOK 135 million shall be reinstated as

debt in DOF Rederi. The reinstated debt will be priced at market terms and will

have maturity in January 2026 which is equivalent as the existing fleet loan

facility in DOF Rederi. The reinstated debt is not guaranteed by DOF Group ASA.

The non-core fleet currently operates in the North Sea on contracts where the

average Ebitda contribution is approximately NOK 152 000/day per vessel. The

current contract status for the fleet is the following:

Skandi Captain firm until 8 November 2023

Skandi Caledonia, firm until early Oct (maintenance docking

planned in 4[th] quarter)

Skandi Barra, firm until May 2024 + 1 year option period

Skandi Caledonia has been awarded a contract in Argentina with estimated start

up in 1[st] quarter 2024 with a major global oil company. The contract has a

duration of 150 days + 60 days options and the estimated Ebitda contribution is

above USD 25 000/day excl. mob and demob.

Mons S. Aase, CEO DOF Group ASA, says: "The PSV market is strong, and earnings

and vessel values are expected to continue the positive trend. Our core strategy

is growth within subsea projects and offshore floating wind. The plan for the

PSV fleet is to maximize the combined return from the expected strong momentum

in earnings and vessel values in the short to medium term."

For further information, please contact:

Martin Lundberg, SVP Finance and Investor Relations DOF Group ASA

Phone: + +47 916 21 057

E-mail: martin.lundberg@dof.com

About DOF Group ASA

With a multi-national workforce of about 4,000 personnel, DOF Group 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 over 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, 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.