2020 – Another challenging year	Page	3
Key figures	Page	4
The Board of Directors	Page	5
Report of the Board of Directors 2020	Page	7
Corporate governance	Page	15
HSEQ report for 2020	Page	18
Declaration by the Board and CEO	Page	23
Financial statements – consolidated accounts	Page	24
Notes to the consolidated accounts	Page	30
Financial statements – parent company	Page	60
Notes to the annual accounts – parent company	Page	64
Appendix 1 – Alternative performance measures definitions	Page	70
Auditor's report	Page	71

2020 – ANOTHER CHALLENGING YEAR

In March 2020, with the pandemic outbreak and the dramatic drop in oil prices, the past year turned out to become one of the most challenging year ever for most of us. Last year I expressed my confidence to our employees that together we would manage whatever challenges we would be facing, and looking back; that is what we have done! The way everyone in the organisation, both onshore and offshore, stood up over the year ensuring our operations and deliveries to clients, have exceeded my highest expectations. My sincere thanks to each and every one of you!

We experienced one lost time incident in 2020. This shows that we continuously have to focus on the safety of our colleagues and ourselves, and this will always be our top priority.

The year started with optimism. In January 2020 we announced a substantial R&D project together with among others Equinor, the European Union, Wärtsilä and Prototech, to install and test a fuel cell burning clean ammonia. As a part of this project, we entered into a 5 year contract with Equinor for Viking Energy from April 2020.

We strongly believe in increased demand for vessels with as low emissions as possible. Eidesvik have 7 of its vessels with hybrid systems, 5 vessels are fuelled with LNG, and Viking Energy will be the first of its kind with both a hybrid system and a zero-emissions fuel cell on board. We should be in a strong position to benefit from this in the years to come!

In the start of 2020, we sold our share in the joint venture Global Seismic Shipping AS, and an era of a close and long cooperation with CGG came to an end. The sale resulted in a cash settlement of MUSD 30 in January 2021.

Due to the unforeseen market development in March 2020, we received early re-delivery of two vessels. In a demanding and challenging market, the organization managed to secure new contracts with both existing and new clients in the period.

Viking Lady and Viking Prince were on contract to Aker BP under the frame agreement for the main part of the year. We were also glad to announce the ship management award for two supply vessels for Aker BP from October 2020, both vessels with battery hybrid solutions installed.

Viking Neptun was on contract for Havfram for a longer period of the year, and we secured further utilization for the winter months in the offshore wind segment for a new client, DEME Offshore.

In January 2021, we secured a new contract for Acergy Viking with Siemens Gamesa, extending the firm period until end of January 2027. This contract award underpins our ambitions in offshore wind and will further strengthen our position in this important and growing market. The client also declared the option for installation of battery hybrid solutions on board the vessel. After this installation, 10 out of the 12 vessels that Eidesvik currently operates, will have battery hybrid solutions installed.

As one of the pioneers within innovation of environmentally friendly technologies, our focus on ESG as well as the UN Sustainable Development Goals are of high priority. The R&D project mentioned above is a good example on how we work to reach these goals, and represents goal 7 (clean energy), 12 (responsible consumption) and 17 (partnerships for the goals), which are important goals for us.

To secure and strengthen our liquidity position in the short run, in the second quarter 2020 we entered into amendments to our credit facilities with all of the financial institutions for the period from July 1, 2020, to June 30, 2021. This helped us to continue our focus on operating our vessels in a very difficult market. We are currently negotiating with our lenders aiming to secure a robust balance sheet and liquidity based on the current market and market outlook. I am hopeful this will be concluded over the next few months, and our full focus can be directed towards our core business again.

2020 was a challenging year for most of us. I will, once again, thank each and every one of you for your extraordinary contribution. 2021 will also be challenging, and looking back at 2020 and how we managed that, I am more confident than ever that together we will be able to handle what is ahead of us, whatever it may be.

Jan Fredrik Meling President & CEO

KEY FIGURES

(all figures in TNOK)	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011
Operating income	530 760	681 559	489 229	754 716	784 106	1 238 936	984 749	993 745	980 494	999 557
EBITDA	131 113	243 188	96 919	385 291	415 284	770 286	492 173	551 242	558 876	465 735
EBITDA margin	25 %	36 %	20 %	51 %	53 %	62 %	50 %	55 %	57 %	47 %
Profit/loss for the year	-132 434	-690 273	-316 625	147 368	-564 519	-239 892	-230 575	140 863	282 170	70 439
Profit per share	-1,99	-9,64	-4,83	5,15	-18,34	-6,53	-5,77	4,67	9,36	2,34

Total assets	3 097 113	3 360 275	4 100 576	4 297 512	5 068 060				6 070 157 5 556 166 5 700 197 5 631 445 5 101 359
Equity	480 519	729 474	1 424 825	1 542 006	1 457 051				2 041 814 2 125 385 2 348 288 2 180 283 1 932 961
Equity ratio	16 %	22 %	35 %	36 %	29 %	34 %	38 %	41 %	39 %	38 %
Value-adjusted equity *)	1 284 519	2 094 474	2 291 825	2 434 806	2 701 029				3 676 354 4 190 385 4 476 288 4 228 283 3 866 961
Value-adjusted equity ratio	33 %	44 %	46 %	47 %	43 %	48 %	55 %	57 %	55 %	55 %

Market value at 31 December	188 936	325 666	284 647	244 215	186 629	289 139		738 675 1 040 175	994 950	892 440
Market value per share at 31 December	3,04	5,24	4,58	8,10	6,19	9,59	24,50	34,50	33,00	29,60
Dividend paid per share	0,00	0,00	0,00	0,00	0,00	0,00	1,00	1,00	1,00	1,00

Liquid funds incl. unused credit	429 183	408 319	515 605	557 440	549 738	702 276	549 556	782 773	454 988	411 552
Working capital incl. unused credit	527 918	432 256	477 152	264 646	395 827	420 631	-40 897	259 292	171 423	174 930
First year's repayment of long-term liabilities **)	157 725	93 756	93 232	304 836	322 187	335 039	391 243	324 073	319 054	270 469

*) Book equity plus added value of broker estimates per December 31, 2020, on vessels on the assumption that the vessels are contract-free. **) Excluding IFRS 16.

THE BOARD OF DIRECTORS

KOLBEIN REGE (CHAIRMAN OF THE BOARD)

was general manager of Eidesvik Invest AS, which owns 60% of the shares in Eidesvik Offshore ASA, until June 2018. He is a lawyer by education, and has extensive experience in banking and as a lawyer in private practice. Rege is associated with the main shareholder in the Company.

BORGNY EIDESVIK (BOARD MEMBER)

is the owner and general manager of Bømmelfjord AS, which owns 55% of Eidesvik Invest AS. Eidesvik Invest AS owns 60% of Eidesvik Offshore ASA. Borgny Eidesvik is associated with the main shareholder in the Company.

LARS EIDESVIK (BOARD MEMBER)

is the owner and chairman of Evik AS, which owns 45% of Eidesvik Invest AS. Eidesvik Invest AS owns 60% of Eidesvik Offshore ASA. Lars Eidesvik is associated with the main shareholder in the Company.

JOHN STANGELAND (BOARD MEMBER)

is a mechanical engineer by education, and has a BBA in economics and management from University of Texas, Austin. He also has an Executive MBA from BI and Nanyang Technological University, Singapore from 2011. He was a shipbroker in Seabrokers AS, Stavanger from 1990 to 1997, and then a business developer in Eidesvik AS until 2003. Since 2004 he has been employed by the base company NorSea Group AS, and he has been CEO since 2012. Stangeland is independent of the main shareholder in the Company.

SYNNE SYRRIST (BOARD MEMBER)

graduated in civil engineering from NTH in 1996 and qualified as a financial analyst from NHH in 2004. She has extensive experience as a financial analyst and consultant. For the past 10 years she has been working as a professional director and has sat on a number of boards, where she has acquired considerable insight into the oil service industry. She is a member of the boards of companies such as Awilco LNG ASA, Aqualisbraemar Loc ASA, and others. Syrrist is independent of the main shareholder in the Company.

LAURITZ EIDESVIK (BOARD MEMBER)

is co-owner and chairman of Bømmelfjord AS, which owns 55% of the shares in Eidesvik Invest AS. Eidesvik Invest AS owns 60% of Eidesvik Offshore ASA. He has nautical training and experience as a ship's officer, a BA in economics and administration from Stord/Haugesund University College from 2008, and an Executive MBA in Developing and Managing Digital Organisations from BI from 2020. Since 2008 he has held various positions in Eidesvik AS within operations, technical, HSE, strategy, and most recently as chartering manager, leaving in the summer of 2018 to join the family company Bømmelfjord AS. Lauritz Eidesvik is associated with the main shareholder of the Company.

KRISTINE SKEIE (BOARD MEMBER)

is general manager and co-owner of HK Shipping Group AS, which wholly or partly owns 24 bulk vessels. She has sat on several boards, including Gruppen for Nærskipsfart i Norges Rederiforbund and Reach Subsea ASA (from 2018), and has chaired the board of Karmsund Havn IKS from 2012 to 2019. She was educated at Norges Varehandelshøgskole (now part of BI) and has further educations in board work, organisation and management, and tax law. Skeie is independent of the main shareholder in the Company.

BØRRE LINDANGER (EMPLOYEE ELECTED BOARD MEMBER)

is a Master on Eidesvik's Viking Neptun and is an employee representative. He started his maritime career in the coast guard, before he completed his Master Mariner education in the mid 90's. Lindanger has been employed by Eidesvik since 1997, and as a Master on several subsea vessels from 2005. Since 2010, Lindanger has been the chief employee representative for the members of "Norsk Sjøoffisersforbund". Lindanger is independent of the main shareholder in the Company.

Kolbein Rege Borgny Eidesvik Lars Eidesvik John Stangeland

Synne Syrrist Lauritz Eidesvik Kristine Skeie Børre Lindanger

REPORT OF THE BOARD OF DIRECTORS 2020

Eidesvik Offshore ASA ("Eidesvik", the "Company" or the "Group") aims to be a leading "Partner in Shipping" in offshore logistics, seismic surveys, subsea and offshore wind operations. We exercise good seamanship and aim to be a powerhouse for progressive shipping and operational solutions. Our main goal is to increase and secure the Company's long-term value creation, and thereby create the basis for further growth, secure jobs and increased shareholder value. We seek to achieve this by ensuring that our vessels have the highest possible degree of long-term employment.

The World-wide outbreak of the Covid-19 virus in early 2020, in combination with the unprecedented decline in demand for oil and thus dramatic drop in oil prices, led oil companies to implement cost and capex saving measures that reduced demand for oil services. Navigating through 2020 has been challenging for the Company's business. As we enter 2021, we see signs of improvements as the oil price has returned to pre pandemic levels. Further, the Covid-19 vaccine will ease on the current operational restraints.

There is still overcapacity in the segments where Eidesvik operates. A combination of increased activity and phasing out of older vessels will be necessary in order to improve profitability in the industry. The Company is making continuous cost-reducing efforts to ensure it remains competitive in this challenging market.

In light of the negative development of the market and outlook early in 2020, Eidesvik entered into amendments to its credit facilities with all of the Group's financial institutions in June 2020 for the period from July 1, 2020, to June 30, 2021. The Group deferred the instalments on all its credit facilities during said period to the end of 2022, amounting to approximately MNOK 90. Due to receipt of the cash proceeds from the PUT-option mentioned below, the unpaid deferred instalments became due in March 2021 and have been paid, and the remainder of the deferred instalments will be paid according to the original schedule during the first half of 2021.

THE BUSINESS

Eidesvik Offshore ASA is the parent company of the Eidesvik Group. The Company's purpose, according to its Articles of Association, is to "operate a shipping company and all that relates to this, including owning shares in companies operating similar or related businesses". This objective has been realised through 2020 by operating 17 vessels, with 15 vessels wholly or partly owned by the Eidesvik Group.

We aim to charter the vessels mainly on long-term contracts in the Supply, Seismic and Subsea/Wind segments. Because of the weak market, more vessels have been operating on short-term contracts in 2020 compared to previous years. The announcement of the 5-year contract for Viking Energy for Equinor in early 2020 was very welcome. At Year-End 2020, the Company had four seismic vessels and one PSV in layup.

The sale of Global Seismic Shipping AS ("GSS") was completed on January 8, 2020. As consideration for Eidesvik's shares in GSS, Eidesvik received shares in Shearwater GeoServices Holding AS (Shearwater"). In January 2021, Eidesvik exercised the PUT-option for its shares in Shearwater effectively selling all its shares in Shearwater to CGG SA for a total consideration of USD 30 million in cash. The cash settlement was received in January 2021.

Eidesvik's activities are managed from the headquarters in Langevåg at Bømlo. The shipping business is organised in accordance with the special tax rules for shipping companies. The vessels are owned by various ship-owning companies, and Eidesvik AS performs the general and business management functions for these companies.

The Group's wholly-owned subsidiaries had 379 permanent employees at the end of the year, and in addition there were 70 contracted workers. The Company and the industry encourage women to seek a maritime education. We currently have several women in leading positions. As part of an international industry, the employees in the Group represent many nationalities. Our focus is to make all employees, regardless of

nationality, gender and cultural background, have equal career opportunities in the Group, and we see nothing to suggest that this is not the case.

HEALTH, SAFETY AND THE ENVIRONMENT

In 2020, the Company has focused on enhancing development of its work on health, safety and the environment. The quality and safety system "Eidesvik Management System" (EMS) certified by DNV GL. EMS meet requirements of ISM code, ISO standards: 9001-2015, 14001-2015, MLC 2006 and ISPS Code.

Throughout 2020, the EMS project has been running for "Simplified and improved safety management", and all of our operational vessels are using updated manuals for bridge, deck, engine, galley and crane operations as applicable, with very positive feedback. Required revisions are being considered on an ongoing basis, where new procedures are implemented when approved.

The management is continuously carrying out awareness work within HSEQ, with a particular focus on the exchange of experience, which facilitates continuous improvement.

Absence due to illness in 2020 was 6.6 %. This is a 22% increase from 2019 (5.4 %). The main part of the increase in 2020 is related to Covid-19 restrictions. The Company is maintaining the agreement with NAV on inclusive working life, which aims to follow up on absence due to illness.

The Company had one lost time incident in 2020 - a fall from a staircase resulting in knee injury on one of our vessels. This underlines the importance of a continuing strong focus on HSE in all parts of the Company's operations.

To avoid and prevent injuries, the main priorities in 2020 have been:

Keeping and follow up on PEC, HSE-QA meetings and safety inspection tours
Basic safety requirements
Compliance with the management tool throughout the organisation
Familiarisation and training
Focus on the "Safety observation" form of reporting, particularly proactive reports
"Time out for safety" meetings
Increased understanding and execution of risk assessments
"Tool box talks"
"Stop the job" obligations for all
Continuous focus on safety representatives, safety and environmental work
Work on board carried out according to the Company's "permit to work system"
Management visits to all vessels.

External environment

Eidesvik has a targeted environmental focus in its operations. Eidesvik has continued its efforts to develop environmentally friendly and energy efficient vessels.

In January 2020, after Viking Energy having worked continuously over 17 yearsfor Equinor, Eidesvik was awarded a contract for five new years of service for the vessel in the North Sea. In addition to providing important work, the contract is connected to a ground-breaking R&D project to test and verify zero-emissions technology on board the vessel. Following the installation of an ammonia-driven fuel cell system in 2024, Viking Energy will become the world's first supply vessel to be able to sail long distances without emissions of greenhouse gases. Testing and verification will take place while the vessel is on contract for Equinor.

In the shipping industry, hydrogen and ammonia are considered the two main zero emission fuel candidates for future shipping. Today, many believe that ammonia represents the best option for longer voyages, such as the North Sea supply routes, where ships need to carry large amounts of fuel.

In addition to Eidesvik and Equinor, the other main partners in the five-year research project are Wärtsilä, supplying the power technology and systems for ammonia storage and distribution, Prototech, supplying the fuel cell system, and NCE Maritime CleanTech, coordinating the project towards the European Union. The ammonia research project on Viking Energy has a total budget of NOK 230 million, of which a significant part is financed with EU funding.

Based on the results from the Fellowship project, we have designed solutions for battery installation on several vessels in the Company. From 2015 to 2020, battery packs were installed on 7 vessels (5 supply- and 2 subsea vessel), and shore power connection was installed on 6 vessels (5 supply- and 1 subsea vessels). In addition, Eidesvik has a management agreement for 2 PSVs with hybrid battery solutions and shore power from October 2020 – totalling 7 supply and 2 subsea vessels. Six of the vessels have DNVGL classification "Battery power". As Siemens Gamesa has declared an option for installation of battery hybrid solutions on board Acergy Viking in 2022, 10 out of the 12 vessels that Eidesvik currently operates, will be hybrids after this installation. Both hybridsolutions with batteries installed and shore power systems contribute to substantial reductions in emissions from our vessels. Our goal is to implement hybrid solutions on more vessels in the coming years, and further build on this competence to develop new solutions that will contribute to substantial reductions of emissions of CO2.

Our operations at sea are operated in accordance with international and national laws and regulations. To reduce the risk of accidents, we focus on preventive maintenance, as well as manning the vessels with highly qualified personnel. Eidesvik is constantly working to reduce the total emission balance associated with operating our vessels.

The blue:E scheme, the Company's programme for environmentally friendly operations, has continued with the same focus and resource usage in 2020. blue:E is important to the Company's goal of running our business in the most environmentally friendly whilst cost-effective way. Awareness of energy efficiency and its impact on both the environment and costs is increasing, and this focus has become an important part of day-to-day operations.

All vessels in Eidesvik's fleet are approved according to the new IMO requirements for energy efficiency. This is in line with the Company's blue:E initiative.

The ESI (Environmental Ship Index) is recognised by the Norwegian Coastal Administration and many ports as the basis for environmental differentiation of fees/rates. 10 of our vessels are registered in ESI, all with a very favourable environmental profile. This has given us a lot of positive publicity, and shows that it is possible to reduce costs through environmentally responsible choices.

A separate HSEQ report has been prepared, and is included in the annual report.

SHAREHOLDERS, CORPORATE GOVERNANCE AND MANAGEMENT

At year-end, there were a total of 62,150,000 shares in the Company. At the end of the year there were 1,637 shareholders in the Company. Foreign investors had a 3.1% stake at the end of 2020. In 2020, the share was last traded at NOK 3.04.

As at December 31, 2020, the Company owned no own shares.

All information is provided in such a way that all shareholders are treated equally. The information is shared through stock exchange announcements, press releases and open presentations, and is also available on the Eidesvik website.

The "Norwegian code of practice for corporate governance" forms the basis for the discharge of these duties by the Board and management. Minor, company-specific changes and adaptations have been made to the code of practice. A separate explanation has been provided in the annual report and on the Eidesvik website.

PROFIT & LOSS, BALANCE SHEET AND FINANCIAL RISK

The consolidated accounts have been submitted in accordance with IFRS, as approved by the EU.

The Company accounts for the parent company Eidesvik Offshore ASA are submitted in accordance with the Norwegian Accounting Act and generally accepted accounting principles in Norway.

Profit & loss

Consolidated operating income for Eidesvik in 2020 is MNOK 530.8 (MNOK 681.6 in 2019, of which MNOK 38.6 was related to the terminated contract for Viking Vanquish), of which MNOK 20.3 is related to a reversal of previous impairment on repayments received from Oceanic Seismic Vessels AS (MNOK 10.1).

Operating profit before depreciation and amortisation (EBITDA) for 2020 were MNOK 131.1 (MNOK 243.2 in 2019). Depreciation and amortisation totalled MNOK 328.3 in 2020 (MNOK 798.0). Profits from joint ventures were MNOK -5.2 (MNOK -10.5). These related to operation of the subsea vessel Seven Viking, and for 2019 also the seismic vessels in the GSS group until May 31, 2019. This gives a total operating result of MNOK -202.4 in 2020 (MNOK -565.3).

Due to observed impairment indicators, the vessels' book values were tested for impairment per December 31, 2020. Based on these tests, impairments of MNOK 120.7 related to eight vessels have been recorded to the accounts in 2020, compared to impairments of MNOK 569.7 related to ten vessels in 2019. This covered vessels in all three segments where the Company owns vessels.

The net financial result of MNOK 67.8 in 2020 (MNOK -123.4 in 2019) includes financial income of MNOK 116.1 (MNOK 17.1), whereof MNOK 106.7 of financial income was related to the sale of GSS and the associated translation differences in the joint venture. This effect is reversed in Comprehensive Income, and has no effect on Total equity. Financial and interest expenses were MNOK -119.3 (MNOK -132.3), and the net gain/loss on currency and derivatives was MNOK 71.0 (MNOK -8.2).

Profit/loss after tax was MNOK -132.4 in 2020 (MNOK -690.3 in 2019) and total comprehensive income was MNOK -220.5 (MNOK -695.4).

The results reflect that the market for the Company's services continued to be challenging also in 2020.

For the parent company Eidesvik Offshore ASA, the profit/loss after tax was NOK -12.7 million (NOK -290.7 million).

Balance sheet

The consolidated book equity is MNOK 480.5 per December 31, 2020 (MNOK 729.5 per December 31, 2019). This is 16% (22%) of the Group's total capital. For the parent company, Eidesvik Offshore ASA, the equity is NOK 477.3 million (NOK 490.0 million).

Vessels account for MNOK 1,922.9, a reduction of MNOK 184.8. The reduction is primarily due to depreciations and impairments. Current assets increased by MNOK 228.2, mainly due to the sale of GSS in January 2020 (classified as assets held for sale in 2019). Total assets are MNOK 3,097.1 (MNOK 3,360.3), a reduction of MNOK 263.2.

Impairment tests are performed on individual cash generating entities (vessels) when indications of impairment are identified. At December 31, 2020, indicators of impairment were still present and the Group's assessment of impairment was updated. The value in use calculations of the consolidated fleet concluded with impairment charges of MNOK 120.7 per December 31, 2020 (MNOK 569.7 per December 31, 2019). Refer to note 12 for further information.

An average of fair value assessments conducted by two independent brokers, values the consolidated part of the fleet free of charters to NOK 2,727 million per December 31, 2020 (NOK 3,473 million per December 31, 2019), which would indicate an excess value before tax of MNOK 804 (MNOK 1,365) compared to the book value of the vessels (The book values are tested against value in use calculations). The Board is aware of the low turnover for the type of vessels Eidesvik owns, and that there is significant uncertainty regarding the vessels' actual market values in the current market.

The Group's long-term liabilities are MNOK 2,267.4 per December 31, 2020 (MNOK 2,414.1 per December 31, 2019). The decrease is mainly a result of instalments and the effect from USD depreciation against NOK. Shortterm liabilities are MNOK 349.2 (MNOK 216.7 million).

The parent company's assets are MNOK 649.5 per December 31, 2020 (MNOK 596.8 per December 31, 2019). The company's assets consist mainly of investments in and loans to subsidiaries, financial investments and cash. The company has liabilities of MNOK 172.1 (MNOK 106.7). This consists of long-term liabilities of MNOK 171.1 (MNOK 105.7) and short-term liabilities of MNOK 0.9 (MNOK 1.0). The company's equity is MNOK 477.3 (MNOK 490.0), which gives an equity ratio of 73% (82%).

Cash flow

Cash and cash equivalents increased from MNOK 408.3 December 31, 2019, to MNOK 429.2 December 31, 2020, whereof MNOK 52.7 is restricted cash and MNOK 14.7 is funding restricted to the ammonia project.

Net cash flow from operating activities for 2020 was MNOK 247.5 (MNOK 167.6).

Net cash flow from investment activities of MNOK -77.5 (MNOK -54.4) was mainly due to investments and periodic maintenance on existing vessels and payment of long-term receivables.

The Group has a negative cash flow from financing activities of MNOK -156.1 (MNOK -224.8). This is mainly related to paid instalments and interests.

The parent company has cash and cash equivalents of MNOK 34.4 (MNOK 62.7). This is a decrease of MNOK 28.3.

Profit allocation

The Board proposes that the loss for the year of MNOK -12.7 for Eidesvik Offshore ASA is transferred from other equity.

Going concern

In the beginning of 2020, the rate of the market improvement from the previous year appeared to slow down. The World-wide outbreak of the Covid-19 virus, in combination with the unprecedented decline in demand for oil and thus dramatic drop in oil prices, led oil companies to implement further cost and capex saving measures that reduced the demand for oil services. During 2021, the oil price has increased to levels around the prepandemic level, and the demand side for all of the Groups segments is expected to increase over the coming years. The oversupply of vessels is however still significant, and will need to decrease for day rates to improve to levels which are sustainable for our industry.

Eidesvik is currently negotiating with its lenders aiming to reduce the debt service commitments from the second half of 2021. Even though it is still too early to predict the outcome of the negotiations with the lenders, the Board is optimistic that an agreement can be reached during the second quarter of 2021 which will give the Company a financial runway beyond 12 months after the release of this annual report. Based on this, the Board is of the opinion that the conditions for a going concern are present, and the financial statements have been prepared based on this assumption. However, based on the information above, the Board of Directors would like to emphasize that there is material uncertainty related to the going concern assumption.

Financial risk

Currency risk

In 2020, Eidesvik had its revenues in NOK, USD, EUR and GBP. Operating costs are mainly in NOK. Eidesvik is therefore exposed to fluctuations in the exchange rates between NOK and the other currencies. In order to mitigate the risk, cash flow hedges have been established by having parts of the Group's long-term financing in USD. Forward contracts are also made where parts of the operational income in USD, EUR, and GBP are presold with settlement in NOK.

Credit risk

Eidesvik's customers are mainly solid companies with good solvency. The risk that the counterparties do not have the financial capacity to fulfil their obligations is considered low.

Liquidity risk

The current liquidity position of the Group is satisfactory, particularly taking into account the settlement of MUSD 30 from the sale of the shares in Shearwater. The Group's current projections of cash flow indicate that a revised agreement with its lenders will have to be in place within a period of 12 months. The Board is optimistic that an agreement can be reached during the second quarter of 2021.

FRAMEWORK CONDITIONS

Access to and development of highly qualified personnel are vital to ensuring good operation and delivery of an optimum product, helping our customers to a better overall result. In order to ensure that Norwegian maritime competence is also developed and utilised in the future, the industry is dependent on stable and predictable framework conditions. The availability of training positions is vital to building up expertise over time, even in a cyclical industry.

Eidesvik currently employs both Norwegian and international crew on board its vessels.

The entire petro maritime cluster, oil companies, shipping firms, shipyards and other oil service companies, will depend on building up maritime competence in the future.

Legislation on net pay schemes is a positive move on the part of the political authorities. However, Eidesvik believes that net pay schemes should be further reinforced.

Historically, the Company has been at the forefront of increasing the recruitment of Norwegian seamen. Considerable resources have been allocated to this work through initiatives to increase the incentives for young people to choose a maritime education. The Company cooperates in various forums to strengthen and enhance Norwegian maritime competence. At the same time, the industry is experiencing increasing international competition, not least when it comes to expertise and costs. It is important for further investment in Norwegian maritime competence in the future that the framework conditions should be organised in such a way as to make it attractive for the industry to build up Norwegian maritime competence over time.

CORPORATE SOCIAL RESPONSIBILITY

The Company's core values and ethical policy are set out in "Ethical guidelines and core values for Eidesvik Offshore ASA", and its social responsibility policy is covered by the "Human rights policy" and "Environmental policy". These state that the work of achieving the business goals must be carried out to high ethical standard and in a manner calculated to safeguard the environment and society. This means that we should act with respect and honesty towards customers, suppliers, employees, authorities, owners and society, and that the Company and the individual should comply with relevant legislation. The policy states that the Company and the individual employee should refrain from all forms of corruption, and sets out how the Company's employees should act if they are offered gifts or other benefits because of their employment.

It is further stated that the Company and all employees must comply with all recognised rules for human rights, including refraining from all forms of discrimination.

No breaches of the Company's ethical policies were recorded in 2020.

BUSINESS SEGMENTS AND OUTLOOK

Eidesvik owns and operates vessels in the three segments of Supply, Seismic and Subsea/Wind.

Supply

At year end 2020, Eidesvik operated 8 large supply vessels, and one smaller supply vessel in lay-up. Out of the large supply vessels, 5 run on LNG, and 7 have batteries and hybrid solutions installed.

At year end 2020, Eidesvik had Viking Prince and Viking Lady on charter to Aker BP under the frame agreement. Viking Lady was on contract with Aker BP the entire year, while Viking Prince had three months in the spot market

during the summer between two contracts with Aker BP. Viking Lady has been contracted to Aker BP for the entire 2021, and Viking Prince commenced a well contract with Aker BP in April 2021 for up to 120 days.

Viking Avant was on charter to Equinor entire 2020, and will continue on this charter until year end 2022. In the end of 2020, Eidesvik installed batteries and hybrid solutions on the vessel.

Viking Queen worked for Equinor for most of 2020, and is on contract with Equinor through 2021 as well.

Viking Energy worked for Equinor entire 2020, as it has done since the vessel was delivered in 2003. In January 2020, Eidesvik was awarded a 5-year contract for the vessel commencing in direct continuation of the current contract ending April 2020.

In relation to the five year contract for Viking Energy, Eidesvik announced a zero emission shipping solution. Viking Energy will be part of a full scale research program using fuel cell technology in combination with ammonia aiming for a zero emission propulsion solution. Equinor and Eidesvik are the main pillars in the industry cooperation together with Wartsila Norway AS, Wartsila Gas Solutions AS, Prototech AS and NCE Maritime Clean Tech. The five year research project receives support from EU and aims to have 2MW fuel cell capacity installed onboard Viking Energy in 2024.

The contract for Viking Princess with Ithaca was extended in January 2020. In March 2020, the Company received a notice of early redelivery, and the vessel was redelivered in April 2020. At year end 2020 the vessel was on contract with ConocoPhillips, before it commenced a 12 months firm contract with Wintershall in January 2021.

Aker BP awarded Eidesvik a ship management agreement for two supply vessels, NS Frayja and NS Orla, in operation on the Norwegian continental shelf. The management agreement is firm until October 2023.

2020 started with unforeseen and unprecedented challenges. The combination of COVID - 19 and a significant reduction in oil price resulted in a sharp market decline. Operators reduced capex spending with cutbacks on drilling activity and an increased focus on opex reductions. This resulted in a number of rig cancellations in the North Sea with related negative impact on vessel utilization and day rate levels. During the year the market gradually picked up as oil prices stabilized and ship owners and operators adapted to COVID - 19 restrains. Utilisation levels improved, however a lag in rate levels remained.

We foresee further market improvements in the year to come. Expected increase in rig activity on the Norwegian Continental Shelf in combination with operator's preference for large and environmental friendly supply vessels are beneficial drivers for the Company's supply fleet.

Subsea/Wind

Eidesvik currently has 4 vessels in the Subsea/Wind segment, of which one is owned in a JV with Subsea 7 (50/50).

Viking Neptun commenced a contract for Ocean Installer(now Havfram) for approximately 5 months in second quarter 2020. After this contract, the vessel secured a contract in the offshore wind market with DEME Offshore to medio March 2021. The vessel commenced a firm contract for Havfram for 6 months in April 2021.

Acergy Viking has been contracted to Siemens Gamesa all year, which extended the fixed contract in January 2021 from January 2022 to January 2027.

Subsea Viking worked for Seabed Geosolutions in the first quarter of 2020. The contract was then amended to a stand-by period limited to April 2021, pending commencement of operations as planned for under the original contract. At year end 2020, the vessel was in transit to Brazil for operations for Seabed Geosolutions, and has firm contracts until fourth quarter 2021.

Seven Viking is on contract for Subsea 7 to 2025 with a 1-year option therafter.

The combination of COVID-19 and the sharp drop in oil prices put a strain on the recovery in the subsea market similar to other oil related segments. Utilisation levels remained healthy over the summer season in the North Sea, but experienced a sharp decline towards year-end and several subsea projects were publicly announced deferred.

Market recovery for this segment was well under way pre COVID-19, and as deferred projects enter execution phase, the market balance is expected to improve.

The Norwegian authorities support package for the oil and gas industry will have a positive impact on the activity levels for both our supply and subsea segments, and gradual market improvements are expected over the next years.

Seismic

Within this segment, Eidesvik owned 4 vessels 100% at year end, whereof all were in layup.

Vantage started 2020 on contract for Seabed Geosolutions. In February 2020, Eidesvik received a new contract award under the long-term Master Time Charter Agreement with Seabed Geosolutions for Vantage. Due to Covid-19 challenges, the contract for Vantage was then cancelled in the start of April 2020, and the vessel has thereafter been in layup.

Veritas Viking, Viking Vision and Viking Vanquish have been in layup throughout the year.

With the combination of COVID-19 and the sharp decline in oil prices we experienced in 2020, operators have been postponing or cancelling several seismic projects that were both planned and very near commencement in 2020. Consequently, 2020 became a year with close to zero activity for the Company within the seismic segment.

By year end 2020 we experienced increased tender activities which may indicate that the activity level will increase for this segment as well.

Bømlo, April 29, 2021

Kolbein Rege	Borgny Eidesvik	Lars Eidesvik	John Stangeland
Chairman of the Board	Board member	Board member	Board member
Synne Syrrist	Lauritz Eidesvik	Kristine Elisabeth Skeie	Børre Lindanger
Board member	Board member	Board member	Board member

Jan Fredrik Meling CEO

CORPORATE GOVERNANCE

PRINCIPLES AND VALUES FOR CORPORATE GOVERNANCE IN EIDESVIK OFFSHORE ASA

The Board of Directors of Eidesvik Offshore ASA (the "Company") shall ensure that the Company comply with the "Norwegian Code of Practice for Corporate Governance" of October 17, 2018. The Group's compliance with, and any deviations from the code of practice must be commented by the Board in relation to every point in the Norwegian Code of Practice for Corporate Governance, and made available to the Company's stakeholders along with the annual report.

The purpose of the guidelines for corporate governance in Eidesvik Offshore ASA is to clarify the roles between shareholders, General Meeting, the Board and executive management exceeding what is evident by legislation.

The principles and core values for corporate governance in Eidesvik Offshore ASA are set out in the following documents (complete documents are available from the Company's website at www.eidesvik.no):

The Board's annual report for the Company's corporate governance.
Articles of Association of Eidesvik Offshore ASA of May 20, 2020.
Instructions for the Board of Directors.
Instructions for CEO.
Guidelines for planning and budgeting.
The Company's core values and ethical guidelines.
The Company's guidelines for social responsibility.
Guidelines for handling price-sensitive information and insider trading.
Guidelines for determination salaries and other remuneration to management.
Guidelines for use of the auditor as an advisor to the Company.
Guidelines for information from the Company.

The Company shall be based on open interaction and coordination between the Company's shareholders, Board and management, as well as other stakeholders such as employees, customers, suppliers, creditors, public authorities and society in general.

COMMENT: No deviations from the Norwegian Code of Practice for Corporate Governance.

Business

The Company's business is described in Article 3 of its Articles of Association. The Board determines the Group's overall goals,strategy and risk profile. The strategic plan is revised annually. The mission statement in the Articles of Association and the Company's goals and strategies are set out in the Annual Report, which is also published on the Company's website at www.eidesvik.no.

COMMENT: No deviations from the Norwegian Code of Practice for Corporate Governance.

Equity and dividends

The Board shall ensure that the Company holds equity commensurate with the risk from and scope of the Company's operations, cf. "Instructions for the Board of Directors".

The Board determines the Company's dividend policy, and presents this with its proposed dividend to the Company's General Meeting.

COMMENT: Deviates from the Norwegian Code of Practice for Corporate Governance. Due to the long absence of need for the Board to increase the share capital and to purchase own shares restricted to defined purpose, this authorisation was not renewed on the ordinary general meeting in 2020.

Equal treatment of shareholders and transactions with close associates

Eidesvik Offshore ASA has only one class of shares.

In the event of an increase in share capital, the principle of equal rights for all shareholders to buy shares applies. Own shares are bought on the stock exchange at market value. For transactions between companies of the Group, there are guidelines in "Instructions for the Board of Directors".

For significant transactions between the Company and shareholders, board members, senior executives or persons related to them, an independent valuation must be obtained. This does not apply when the General Meeting is to discuss the matter according to the provisions of the Public Limited Liability Companies Act. The same applies to transactions between companies in the Group where there are minority shareholders.

The instructions for the Board, the instructions for the CEO, and the ethical guidelines have rules for impartiality.

COMMENT: No deviations from the Norwegian Code of Practice for Corporate Governance.

Shares and negotiability

The shares in the Company are listed and freely negotiable. The Articles of Association do not impose any form of restriction on negotiability.

COMMENT: No deviations from the Norwegian Code of Practice for Corporate Governance.

General Meetings

The notice of and procedure for the Company's General Meeting follow the regulations given by the Public Limited Liability Companies Act with regard to contents and deadlines. The registration deadline is set as close to the meeting as practicable. Shareholders who are unable to attend may vote by proxy.

Notice of the meeting, proposed resolutions, proxy forms, other case documents and information on shareholders' right to raise matters at the General Meeting are made available at the Company's website as soon as they are present.

The Board and the chair of the General Meeting must arrange for the general meeting to vote for each candidate nominated for election to corporate bodies.

The minutes of the General Meetings are made available on the Company's website as soon as possible.

COMMENT: Deviates from the Norwegian Code of Practice for Corporate Governance in that the Chairman of the Board and the auditor attend the General Meeting, but not the entire Board. By overall assessment, it is not considered necessary for all Board members to attend the General Meeting. The General Meeting complies with the rules in the Public Limited Liability Companies Act, and the Board has not established separate procedures for chairing the General Meeting.

Nomination committee

The Nomination Committee shall according the the Articles of Association consist of three to five members. The Nomination committee shall make proposals for election of Board Members and members of the Nomination Committee to the General Meeting. The General Meeting may adopt guidelines for the Nomination Committee.

COMMENT: Deviates from the Norwegian Code of Practice for Corporate Governance in that the Nomination Committee consist of more than one member from the Board.

Board of Directors: composition and independence

The composition of the Board of Directors of Eidesvik Offshore ASA is made to safeguard the interests of shareholders and the Company's need for competence, capacity and diversity. Every effort is made to ensure that the Board can function well as a collegial body.

The Board is composed in such a way that it can act independently of special interests.

The majority of the members elected by shareholders are independent of the Company's executive management and major business associates.

At least two of the members elected by shareholders are independent of the Company's main shareholders. Representatives of the executive management are not members of the Board.

The Chairman is elected by the General Meeting, as the Company does not have a corporate assembly.

The Board members are elected for two years at a time. In the Annual Report, the Board provides details of the Board members' competence and capacity, as well as which Board members are considered to be independent. Board members are encouraged to own shares in the Company.

COMMENT: Deviates from the Norwegian Code of Practice for Corporate Governance in that the Chairman is elected by the General Meeting. The reason is that the Company does not have a corporate assembly. There is also no mention in the annual report of attendance at Board meetings. This is not considered relevant as it is entirely exceptional that directors are not present either physically or by telephone.

The work of the Board of Directors

A separate instruction for the Board of Directors of Eidesvik Offshore ASA has been prepared. The Group has an audit committee, and the Board of Directors of Eidesvik Offshore has established instructions for the audit committee.

COMMENT: No deviations from the Norwegian Code of Practice for Corporate Governance.

Risk management and internal control

According to the instruction for the Board of Directors of Eidesvik Offshore ASA, the Board ensures that the Company has good internal control and appropriate systems for risk management. The Board receives monthly status reports on Company operations, including consolidated accounts with deviation analyses and liquidity forecasts.

COMMENT: No deviations from the Norwegian Code of Practice for Corporate Governance.

Remuneration of the Board of Directors

The remuneration of the Board is determined by the General Meeting and does not depend on results. Information on remuneration is given in the annual report.

COMMENT: No deviations from the Norwegian Code of Practice for Corporate Governance.

Remuneration of executive personnel

The Board has adopted guidelines for remuneration for executives stating the main principles of the Company's executive remuneration policy. This is submitted annually to the General Meeting.

COMMENT: No deviations from the Norwegian Code of Practice for Corporate Governance.

Information and communications

The Board has adopted guidelines for the Company's contact with shareholders outside the General Meeting. These are set out in the Board's annual report. The Company publishes a financial calendar each year, and all interim reports and results presentations are published on the Company's website and the Oslo Stock Exchange.

COMMENT: No deviations from the Norwegian Code of Practice for Corporate Governance.

Take-overs

The Board has not prepared guiding principles for how to act in the event of a takeover bid.

COMMENT: Deviations from the Norwegian Code of Practice for Corporate Governance. This is because, with the current composition of shareholders, a takeover is not considered likely without the main owner working in close cooperation with the Board.

Auditor

The Board has an annual plan for the audit and the auditor's attendance at Board meetings. This is to give the Board a good insight into the auditor's work, and to benefit from the auditor's knowledge and competence in connection with the Board's discussion of the annual accounts.

COMMENT: No deviations from the Norwegian Code of Practice for Corporate Governance.

HSEQ REPORT FOR 2020

INTRODUCTION

The quality and safety system "Eidesvik Management System" is certified by DNV GL to meet the requirements of the ISM Code, ISO 9001:2015, ISO 14001:2015, MLC 2006 and the ISPS Code.

Eidesvik's activities are guided by a main goal of zero injuries to personnel and no damages to the environment and assets. The priority tasks to achieve this goal are to maintain a constant focus on compliance with and awareness of the "Eidesvik Management System" ("EMS"), including "basic safety rules". Good working environments are established at all vessels, with focus on awareness and monitoring of environmental aspects identified by Eidesvik.

Throughout 2020, the EMS project has been running for "Simplified and improved safety management", and all of our operational vessels have adopted updated manuals for bridge, deck, engine room, galley and crane operations as applicable, with very good feedback from employees. Some procedures for the onshore office are outstanding, but revised as required. Revisions are continuously ongoing, where new procedures required are implemented once approved.

Eidesvik has prepared an annual HSEQ program that specifically addresses future focus areas, including "Key Performance Indicators" ("KPIs"). The KPIs are communicated to all vessels and departments, and posted in public areas both on vessels and at office. Eidesvik focuses on a strong commitment to the HSEQ program in order to achieve the goals within the various areas. The guiding documents are continuously evaluated in order to ensure optimal and functioning operating procedures for the employees both offshore and onshore.

Eidesvik had one lost time incident in 2020. The injured person returned to duty at the next service period.

The statistic below illustrates the number of personal injuries per million working hours over the last 5 years.

Emphasising the analysis of causal relations and underlying causes are important as a basis for transferring experiencesto other vessels within Eidesvik. Focusing on operations and compliance with the EMS are important accompanying measures. In addition to preventing injuries, we also focus on the following actions:

Focus on "safety observations" reporting method, especially proactive reports. This has contributed to an increase in reporting. Reports are reviewed at safety meetings on board. In 2020, 3,874 "safety observations" were reported; whereof 41% was proactive. This constitutes a large percentage of the total number of reports in the HSEQ field.
Extensive use of risk analysis. All vessels and office are analysing tasks/jobs to avoid accidents/ injuries, and any hazards are highlighted and actions are implemented to reduce and/or remove the hazards. In 2020, 992 new and/or revised risk analysis were done.
By holding "Tool Box Talk" meetings ("TBT"), this help us to avoid accidents and injuries. The people executing the jobs are also doing the planning and receive information on potential hazards in connection with the job. Total number of TBT in 2020 was 16,774.
Work on board is performed according to a "Permit to Work" system ("PTW"). This help us to avoid accidents and injuries. Everyone needs to obtain permission from the vessel's management before performing jobs that could cause a risk to personnel, environment and vessel.

INCIDENT REPORTING

In 2020, 570 incident reports in all categories were logged. In addition, 290 improvement suggestions and 259 document of change requests were submitted from vessels and from the office. The office issued 57 experience feedback report to vessels and office. The incident, near miss, improvement suggestion, document of change request, and transfer of experience and experience feedback reports are a positive foundation for learning and implementing specific actions to avoid reoccurrences. A strong and healthy culture for reporting enables the organisation to identify developments and trends within specific operations or tasks. This is used to improve areas in order to prevent incidents from recurring. Reporting of incidents has a preventive effect, and the Company has a strong focus on this.

QUALITY

Our goal is to provide services of a quality that exceeds the customer's expectations, and we follow up on surveys of customer satisfaction from every vessel and crew. Quality is to do the job right first time.

WORK ENVIRONMENT ACTIONS

In 2020, Eidesvik continued the work regarding follow up on absence due to illness, as well as developing Eidesvik as an "Inclusive Working Life" ("IWL") organisation. Eidesvik extended the agreement as an IWL organisation in 2020. The feedback on these actions has proven to be very positive. Various actions have been implemented, focusing on both the physical and the psycho-social working environment.

The Company's occupational health service has performed internal health inspections on board several vessels and the office. As a consequence of the Covid-19 pandemic, a lot of extra work occurred during the year. Due to well established routines, the extent of damage was minimized.

Eidesvik is the only shipping company in Norway with its own occupational health service, which is free of cost to all employees and their families.

In 2020, a working environment survey including all employees both offshore and onshore was performed. Some issues were identified and discussed at management meetings and "Working Environment Committee" at the office, and corrective measures have been implemented.

All the vessels and the office are equipped with defibrillators.

SICK LEAVE

Absence due to illness in 2020 was 6.6%. This is an increase of 22% from 2019 (5.4%). The main part of the increase in 2020 is related to Covid-19 restrictions.

Eidesvik has high focus on preventive actions and closer follow-up from company and management in order to increase attendance at work. Employees have also been enabled to subscribe to private health services, as well as cover for physiotherapy. Eidesvik's occupational health service is an important support in these efforts.

EXTERNAL ENVIRONMENT

The overview below shows an extract from our environmental accounts for 2020 related to the vessels' consumption and emissions by categories:

TYPE OF RAW MATERIAL	AMOUNT CONSUMED	ENVIRONMENTAL IMPACT
Marine diesel	30,669 tonnes	CO2, NOX, and SO2
Natural gas	6,517 tonnes	CO2, NOX
Shore power	783,332 kw	CO2, NOX, and SO2
Lubricating oil	225,967 litres	CO2, NOX, and SO2
Urea	783,401 litres	CO2, NOX, and SO2
Coolant	162 kg	Small
Bilge water separated	1,323,500 litres	None
Bilge water delivered onshore	303,800 litres	None
Food waste	33,673 kg	None
EMISSIONS TO THE AIR
CO2	86,251 tonnes	Greenhouse gas
NOX	799 tonnes	Particle pollution
SOX	35 tonnes	Greenhouse gas
TYPE	AMOUNT DELIVERED ONSHORE	PROCESSING/EFFECT
Paper and cardboard	7,201 kg	Recycled
Wood	13,678 kg	Recycled
Metal	12,655 kg	Recycled
Plastic	8,958 kg	Recycled
Glass	1,483 kg	Recycled
Sludge	303 M3	Recycled
Batteries	190 kg	Recycled
Oil barrel/drum	3,234 pcs	Recycled
Special waste	410 kg	Special processing
Incinerator ash	2,230 kg	Special processing
Paint & chemical cans/drums	3,150 kg	Special processing
First aid equipment/medication	28 kg	Special processing
Cooking oil	1,341 kg	Recycled
Electrical waste	6,199 kg	Recycled
Fishing gear from the ocean	500 kg	Recycled
Minor spills reported:
Hydraulic oil	765 litres	Minor environmental impact

The most important actions to reduce emission to the external environment:

TYPE	ENVIRONMENTAL IMPACT	ACTIONS
Exhaust gas	Air pollution	Install gas machines Install exhaust catalyst Rebuild machines Latest generation of equipment, bilge Adaptive autopilot Polishing of propellers Logistics optimization Optimise use of engines Optimise trimming of vessels Improve maintenance Install battery technology Install shore power connection
Incinerator	Air pollution	Increase delivery to shore Improve maintenance Improve design
Boiler	Air pollution	Improve maintenance Upgrades
Oil and chemicals	Pollution of the sea	Improve maintenance/routines Practices in cleaning oil spills
Ballast water	Pollution of the sea	Install cleaning system for ballast water in new vessels according to future IMO requirements

The focus on eco-friendly emissions continues on the Group's new vessels and on existing vessels in collaboration with the charterers.

The Company continues the program for optimizing operations in order to reduce the consumption of fuel and energy. The programme is called EEEP (Eidesvik Energy Efficiency Programme)/blue:E.

DECLARATION BY THE BOARD OF DIRECTORS AND CEO

The Board and the CEO have today reviewed and approved the annual report and the consolidated annual accounts and notes for Eidesvik Offshore ASA as at December 31, 2020, and for the year 2020, including consolidated comparative figures as at December 31, 2019, and for the year 2019.

The annual accounts are submitted in accordance with the requirements of IFRS as adopted by the EU and additional Norwegian requirements in the Securities Trading Act

The Board and CEO believe that the annual accounts for 2020 have been prepared in accordance with applicable accounting standards, and that the information in the accounts gives a true picture of the Group's assets, liabilities, financial position and overall performance as at December 31, 2020, and December 31, 2019. To the best of the Board's and CEO's knowledge, the director's report gives a true view of important events during the accounting period and their influence on the annual accounts. To the best of the Board's and CEO's knowledge, the description of the most important risk and uncertainty factors the business is facing in the next accounting period, as well as the description of significant transactions with related parties, gives a true account.

Bømlo, April 29, 2021

Kolbein Rege	Borgny Eidesvik	Lars Eidesvik	John Stangeland
Chairman of the Board	Board member	Board member	Board member
Synne Syrrist	Lauritz Eidesvik	Kristine Elisabeth Skeie	Børre Lindanger
Board member	Board member	Board member	Board member
Jan Fredrik Meling

CEO

CONSOLIDATED STATEMENT OF PROFIT AND LOSS

	(NOK 1,000)
--	-------------

		2020	2019
	Note	1.1-31.12	1.1-31.12

Charter income		510 445	632 862
Other income	5	20 315	48 697
Total operating income	4	530 760	681 559

Payroll expenses	11	272 829	310 409
Other operating expenses	6	126 817	127 962
Total operating expenses		399 647	438 371

Operating profit before depreciation and impairment		131 113	243 188

Depreciation	12,22	207 628	228 267
Impairment of tangible fixed assets	12	120 679	569 700


Operating profit before profit from joint ventures		-197 194	-554 778

Profit from joint ventures	7	-5 204	-10 510

Operating profit		-202 398	-565 289
Financial income	8	116 124	17 089
Financial expenses	8	-119 286	-132 306
Value change, derivatives	8	0	0
Net currency gain/loss	8	71 000	-8 204
Net financial items		67 838	-123 421

Profit/loss before taxes		-134 560	-688 710

Tax costs	9	2 126	-1 563

Profit/loss for the year		-132 434	-690 273
Attributable to:
The parent company's shareholders		-123 569	-598 923
Non-controlling interests	7	-8 866	-91 350
Profit/loss for the year		-132 434	-690 273

Earnings per share	10	-1,99	-9,64
Diluted earnings per share	10	-1,99	-9,64

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(NOK 1,000)

		2020	2019
	Note	1.1-31.12	1.1-31.12
Statement of comprehensive income
Profit/loss for the year		-132 434	-690 273
Items that will not be reclassified via profit/loss in later periods
Actuarial gains/losses		28 500	1 042

Items that will be reclassified via profit/loss in later periods
Translation differences joint ventures	7	-106 712	-6 120
Change in value financial investments	21	-9 900	0
Total comprehensive income for the year		-220 546	-695 352

Attributable to:
The parent company's shareholders		-211 681	-604 001
Non-controlling interests		-8 866	-91 350
Total comprehensive income for the year		-220 546	-695 352

CONSOLIDATED STATEMENT OF BALANCE SHEET

(NOK 1,000)

	Note	31.12.2020	31.12.2019
Assets
Non-current assets
Vessels	12	1 922 882	2 107 637
Buildings, land and other operating assets	12	21 445	20 277
Financial derivatives	23	0	538
Right-of-use asset	22	55 209	59 963
Investments in joint ventures	7	154 316	159 520
Shares	21	1 720	1 720
Other non-current receivables	13	64 455	96 857
Total non-current assets		2 220 027	2 446 513

Current assets
Financial investments	21	255 978	0
Accounts receivable	14	101 416	155 559
Derivatives	23	25 284	724
Other current assets	15	65 224	84 312
Cash and cash equivalents	16	429 183	408 319
Total current assets		877 086	648 914
Assets held for sale	7, 27	0	264 848
Total assets		3 097 113	3 360 275

CONSOLIDATED STATEMENT OF BALANCE SHEET

(NOK 1,000)

	Note	31.12.2020	31.12.2019
EQUITY AND LIABILITIES
Equity
Equity attributable to the Company's shareholders:
Share capital	17	3 108	3 108
Share premium fund		177 275	177 275
Other paid-in equity		629	629
Other reserves		-535	-29 034
Translation differences	21	-9 900	106 712
Other equity		411 087	563 064
Total equity majority shareholders		581 664	821 753

Non-controlling interests		-101 145	-92 280
Total equity		480 519	729 474

Liabilities
Non-current liabilities
Interest-bearing debt	20	2 193 798	2 341 326
Lease liabilities	22	54 861	57 923
Derivatives	23	7 158	8 062
Pension liabilities	18	236	6 833
Other long-term liabilities	19	11 373	0
Total non-current liabilities		2 267 426	2 414 143

Current liabilities
Interest-bearing debt	20	166 596	105 314
Derivatives	23	13 442	4 150
Lease liabilities	22	3 256	3 256
Accounts payable		48 061	20 716
Tax payable	9	0	790
Other current liabilities	19	117 813	82 433
Total current liabilities		349 168	216 658

Total liabilities		2 616 594	2 630 801

Total equity and liabilities		3 097 113	3 360 275

Bømlo, April 29, 2021

Kolbein Rege Chairman of the Board		Borgny Eidesvik Board member	Lars Eidesvik Board member		John Stangeland Board member
Synne Syrrist	Lauritz Eidesvik	Kristine Elisabeth Skeie		Børre Lindanger	Jan Fredrik Meling
Board member	Board member	Board member		Board member	CEO

27 Eidesvik Offshore ASA

CONSOLIDATED STATEMENT OF CASH FLOW

(NOK 1,000)

	Note	2020	2019
		1.1-31.12	1.1-31.12

Cash flow from operations
Payments from customers		564 588	651 110
Payment to suppliers, employees and others		-377 825	-532 246
Payments from reimbursement scheme, Norwegian seamen		59 992	45 267
Interest received/paid		750	3 748
Net paid and refunded taxes		-13	-236
Net cash flow from operating activities		247 491	167 642

Cash flow from investment activities Insurance settlements received		0	3 714
Received long-term receivables	13	67 482	37 590
Salg av andre investeringer	12	0	0
Purchase of tangible fixed assets	12	-144 941	-95 737
Net cash flow from investment activities		-77 459	-54 433
Cash flow from financing activities
Repayment of debt to JV		0	-21 000
Installment financial lease	22	-3 061	-3 256
Repayment of debt	20	-52 303	-93 742
Paid interest	20	-100 729	-106 832
Net cash flow from financing activities		-156 093	-224 831
Currency gain/loss on cash and cash equivalents		6 924	4 336
Net increase (decrease) in cash and cash equivalents		20 863	-107 285
Cash and cash equivalents at start of period	16	408 320	515 605
Cash and cash equivalents at end of period	16	429 183	408 320

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(NOK 1,000)

			Majority share					Minority share	Total equity
Note				Other
	Share			paid-in	Translati	Other
			capital Premium fund Other reserves	equity	on	equity	Total
Equity at 01.01.2019:	3 108	177 275	-30 076	629	112 832	1 161 987 1 425 755		-930	1 424 825
Result for the year	0	0	0	0	0	-598 923	-598 923	-91 350	-690 273
Currency translation differences	0	0	0	0	-6 120	0	-6 120	0	-6 120
Actuarial gain/loss	0	0	1 042	0	0	0	1 042	0	1 042
Total comprehensive income 2019	0	0	1 042	0	-6 120	-598 923	-604 001	-91 350	-695 352
Equity at 31.12.2019	3 108	177 275	-29 034	629	106 712	563 065	821 753	-92 280	729 474

Result for the year	0	0	0	0	0	-123 569	-123 569	-8 866	-132 434
Currency translation differences*	0	0	0		0 -106 712	0	-106 712	0	-106 712
Actuarial gain/loss	0	0	91	0	0	0	91	0	91
Other adjustments**	0	0	28 409	0	-9 900	-28 409	-9 900	0	-9 900
Total comprehensive income 2020	0	0	28 500		0 -116 612	-151 978	-240 090	-8 866	-248 955
Equity at 31.12.2020	3 108	177 275	-535	629	-9 900	411 087	581 664	-101 145	480 519

* As the sale of Global Seismic Shipping AS to Shearwater was completed January 8, 2020, the Translation differences recognized in Equity have been recognized as financial income, and with reverse effect in Comprehensive income. See Note 7 and 8 for further information. ** The NOK -9,900 thousands are translation differences of the financial investments on the Consolidated statement of financial position, and the NOK -28,409 thousands is the effect of the discontinued defined-benefit pension scheme for the employees in Eidesvik Maritime AS in 2020. This was replaced with a defined-contribution scheme from 01.01, 2020. As of December 31, 2020, there are no employees in Eidesvik Maritime AS on the defined-benefit scheme.

NOTES TO THE CONSOLIDATED ACCOUNTS

Note 1

Eidesvik Offshore ASA (the Company) and its subsidiaries (collectively the Group) offer services within the maritime sector. The Group operates in several segments where the main segments are seismic, subsea and platform supply vessel services. The Group's vessels are located across large parts of the world.

Eidesvik Offshore ASA is a public limited company registered in Norway and headquartered at Langevåg in Bømlo municipality. Eidesvik Offshore ASA is listed at the Oslo Stock Exchange, and is subject to the provisions of the Public Limited Liability Companies Act with regards to limitations in shareholders' liability to the Company's creditors. The annual accounts were submitted by the Board on April 29, 2021, and approved for publication. The General Meeting approves the final annual accounts and is authorised to require changes to the accounts before it is approved. All amounts are presented in Norwegian kroner (NOK), and are rounded to the nearest thousand unless otherwise specified.

Information on the ultimate parent company is presented in Note 24.

Overview of Group relations:

Company	Reg. office	Owner share
Eidesvik Shipping AS	Bømlo	100%
Eidesvik AS	Bømlo	100%
Eidesvik MPSV AS	Bømlo	100%
Eidesvik Shipping International AS	Bømlo	100%
Eidesvik Subsea Vessels AS	Bømlo	100%
Eidesvik Management AS	Bømlo	100%
Eidesvik Maritime AS	Bømlo	100%
Eidesvik Neptun AS	Bømlo	74.75%
Eidesvik Neptun II AS	Bømlo	74.75%
Eidesvik Supply AS	Bømlo	80.11%
Hordaland Maritime Miljøselskap AS	Bømlo	91%
Norsk Rederihelsetjeneste AS	Bømlo	100%
Eidesvik Shipping II AS	Bømlo	100%
Eidesvik UK LTD	UK	100%
Eidesvik Shipping Mexico	Mexico	PE

Joint Ventures:

Eidesvik Seven AS	Bømlo	50%
Eidesvik Seven Chartering AS	Bømlo	50%

Please refer to Note 7 for further information.

In addition, the Group owns the following shares:

Simsea Holding AS	Haugesund	10.4%
Bleivik Eiendom AS	Haugesund	22.6%
Eidesvik Ghana Ltd.	Ghana	49%

The total book value of these amounts to MNOK 1.7 and is not considered material. Please refer to Note 21 for further information.

Note 2 - Accounting principles

The most important accounting principles used in the preparation of the consolidated accounts are described below. These principles are applied in the same way in all periods presented, unless otherwise stated in the description.

2.1 Main principles

The consolidated accounts of the Eidesvik Offshore Group have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU, and interpretations adopted by the International Accounting Standards Board (IASB).

The consolidated accounts have been prepared on the basis of the historical cost principle, however, it has been modified for the following: financial derivatives and financial assets classified as "fair value through the profit and loss account", which have been valuated at fair value.

An asset is presented as short-term if it is expected to be realised within twelve months of the balance sheet date as part of ordinary operations, if it is an asset owned with purchase and sale as its main purpose, or if it is cash or cash equivalents.

Debt is presented as short-term if there is no unconditional right to postpone payment at least twelve months from the balance sheet date, or it is a debt with purchase and sale as its main purpose. Long-term debt is reclassified as short-term debt when there are 12 months left to maturity. The same applies to the first year's repayment on long-term debt maturing within twelve months from the balance sheet date.

The accounts are prepared in accordance with IFRS. This means that the management has used estimates and assumptions that have affected assets, debt, income, expenses, and information on potential liabilities.

Cash flow statements are prepared according to the direct method.

2.2 Principles of consolidation

The consolidated accounts include parent company Eidesvik Offshore ASA and companies controlled by Eidesvik Offshore ASA. Control is obtained when the Group is exposed to, or is entitled to, variable return resulting from the Group's involvement, and the Group is able to influence the return through its influence in the Company.

a) Subsidiaries

Subsidiaries are all entities where the Group has controlling influence on the entity's financial and operational strategy, normally through owning more than half the voting capital. When determining whether there is controlling influence, one includes the effect of potential voting rights which can be exercised or converted on the balance sheet date. Subsidiaries are consolidated from the time control is transferred to the Group, and are excluded from consolidation when control ceases. Stocks and shares in subsidiaries are recorded at cost, and eliminated against the equity of the subsidiary at the time of takeover or establishment.

b) Joint ventures

A joint arrangement is either a joint operation or a joint venture. Companies where the Group has joint control with another party, are defined as joint ventures, as it has rights to the net assets of the arrangement. Joint ventures exist if there is 50/50 ownership, or if it is otherwise regulated so that the parties have joint control. Investments in joint ventures are recognised in accordance with the equity method. The Group does not capitalise its share of deficits if this means that the capitalised value of the investment will be negative (including unhedged receivables on the entity), unless the Group has assumed liabilities or provided guarantees for the joint venture's liabilities.

c) Non-controlling interests

Non-controlling interests' (minority interests) share of the equity is shown on a separate line in the Group's equity. Non-controlling interests include the minority share of the capitalised value of subsidiaries, including the share of identifiable added value at the time of acquisition of a subsidiary.

2.3 Segment Information

Segments are reported in the same way as for reporting to the Company's supreme decision maker. The Board is defined as the Company's supreme decision maker, and is responsible for allocating resources and assessment of earnings in the various segments. The Group's reporting format is associated with business areas, secondary information associated with geographical areas is not used, as this does not make sense strategically. The three primary operating segments are divided into Supply vessels (PSV), Subsea/Wind, and Seismic. In addition to this, other activities, which includes, among other things, vessels under construction, is placed in a separate segment.

As the joint ventures are significant with regard to the core activities, gross figures from underlying companies are included in segment information.

2.4 Conversion of foreign currencies

a) Functional currency and presentation currency

The accounts of the individual entities in the Group are measured in the currency mainly used in the economic area where the entity operates (functional currency). The consolidated accounts are presented in Norwegian kroner (NOK), which is both the functional currency and the presentation currency of the parent company. In order to calculate the share of profit from joint ventures, balance sheet figures in a different currency are translated at the exchange rate of the balance sheet date, while profit and loss items are translated at the quarterly average exchange rate. Translation differences are recognised as other income or costs directly in the equity.

b) Transactions and balance sheet items

Transactions in foreign currencies are translated to the functional currency using the transaction exchange rate. Currency gain and loss occurring when paying such transactions, and when translating monetary items (assets and liabilities) in foreign currencies at year end on the balance sheet date, are recognised. Monetary items and liabilities in other currencies are translated at the exchange rate of the balance sheet date.

Currency gains and losses are included in the income statement as "Net currency gain/loss".

2.5 Vessels, depreciation and other fixed assets

Vessels and other fixed assets are recognised at historical cost minus accumulated depreciation and impairments. Each part of the asset that has material share of the total cost is depreciated separately and linearly over the useful life of the asset. Components with the same useful life are depreciated as one component. The depreciation period and method are evaluated at each balance sheet date to ensure that the method and the period used correspond with the financial realities for the asset. The same applies to scrap value, which is subject to an annual assessment.

Estimated useful life:
Vessels	15-30 years
Property/fixtures	5-20 years
Equipment	3-5 years
Periodic maintenance	30-60 months
Port facilities	N/A

At the time of delivery for new vessels, an amount corresponding to the expected cost at the first ordinary classification/periodic maintenance is separated. This amount is depreciated over the period until the next docking date. Costs associated with subsequent periodic maintenance are capitalised and depreciated until the next periodic maintenance, generally over 30–60 months. Costs of ongoing maintenance and minor repairs and maintenance are expensed as they incur.

Leases

The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Group as a lessee

The Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Group recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

i) Right-of-use assets

The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straightline basis over the shorter of the lease term and the estimated useful life of the assets, as follows:

Buildings	2.5-33 years
Vehicles	8-17 months

If ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.

ii) Lease liabilities

At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including insubstance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating the lease, if the lease term reflects the Group exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.

iii) Short-term leases and leases of low-value assets

The Group applies the short-term lease recognition exemption to its short-term leases of machinery and equipment (i.e. those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of lowvalue assets recognition exemption to leases of office equipment that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.

Group as a lessor

Leases in which the Group does not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. Rental income arising is accounted for on a straight-line basis over the lease terms and is included in revenue in the statement of profit or loss due to its operating nature. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are recognised as revenue in the period in which they are earned.

2.6 Impairment of fixed assets

The book value of tangible fixed assets is assessed for impairment when events or changes in circumstances indicate that book value cannot be recovered. If such indications are discovered, and the book value exceeds the recoverable amount, the asset is impaired to the recoverable amount, which for tangible fixed assets is the higher of expected net sales price and value in use. Value in use is calculated as the present value of future cash flows. If the reason for the impairment lapses at a later time, and the lapse can be tied to an event taking place after the impairment is recognised, the previous impairment is reversed.

2.7 Sale of vessels

Profit or loss on the sale of vessels is recorded on the line of other income.

2.8 New builds

Vessels under construction are capitalised as instalments are paid, along with costs directly associated with the construction, such as supervision, other construction costs and interest on external financing during the construction period. The capitalised value is reclassified to vessels when the vessel is delivered from the shipyard and is ready for use. Depreciation of vessels starts on the same date.

2.9 Financial assets

Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through other comprehensive income (OCI), and fair value through profit or loss. Fair value through other comprehensive income (OCI) is not relevant for the Group.

The Group uses derivatives such as currency contracts and interest swaps to reduce the risk associated with currency and interest rate fluctuations. The derivatives are presented as an asset with a positive value or a liability with a negative value.

a) Financial assets at fair value through profit and loss

A financial asset is classified in this category if it is acquired primarily to make a profit from short-term price fluctuations, or if the management chooses to classify it in this category. Derivatives are also classified as 'held for trading'. Assets in this category are classified as current assets if they are held for trading or if they are expected to be realised within 12 months after the balance sheet date.

Profit or loss from changes in fair value of assets classified as "financial assets at fair value through profit and loss", including interest income and dividends, is included in the income statement under "change in value, derivatives" in the period where they occur.

b) Financial assets at amortised cost

In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to give rise to cash flows that are "solely payments of principal and interest" ("SPPI") on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. Financial assets with cash flows that are not SPPI are classified and measured at fair value through profit or loss, irrespective of the business model. Loans and receivables are non-derivative financial assets with fixed payments that are not traded on an active market. They are classified as current assets, unless they mature more than 12 months after the balance sheet date. In such cases, they are classified as non-current assets. Loans and receivables are classified as accounts receivable and other receivables on the balance sheet.

Ordinary acquisitions and sales of investments are recognised at the date of the transaction. All financial assets that are not recognised at fair value through profit and loss are initially recorded at fair value plus transaction costs. The exception is accounts receivable, which are recognised for the first time at the transaction price in accordance with IFRS 15, ref. IFRS 9.1.5.3. Financial assets recognised at fair value through profit and loss are recognised on acquisition at fair value and transaction costs are posted to expenses. Investments are removed from the balance sheet when the entitlement to cash flows from the investments cease, or when such entitlement is transferred and the Group has basically transferred all risk and all potential profit from ownership. Financial assets available for sale and financial assets at fair value through the profit and loss account are valuated at fair value after the first recognition. Loans and receivables are recognised at amortised cost using the effective interest method.

The Group recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

2.10 Derivatives and hedging

The Group does not use accounting hedging, and none of the Group's derivatives are designated hedging instruments. The Group recognises derivatives at fair value with value changes through profit/loss. The purpose of the derivatives is to secure the Group's cash flow against fluctuations in interest and exchange rates. Refer to Note 23 for an overview of the Group's derivatives at 31.12.2020.

2.11 Accounts receivable

Accounts receivable are measured the first time at the transaction price in accordance with IFRS 15. For subsequent measurements, accounts receivable is assessed at amortised cost determined by using the effective interest method, less provision for expected loss. The Group has chosen to apply the practical simplification approach to calculate losses on accounts receivable. The group has established a provision model that is based on historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. The group has historical had minor losses on trade receivables. See Notes 3 and 14.

2.12 Cash and cash equivalents

Cash and cash equivalents consist of cash, bank deposits, and other short-term and easily negotiable investments with a maximum of three months' original maturity and overdraft facilities. In the balance sheet, overdraft facilities are included in loans under short-term liabilities.

2.13 Share capital

Ordinary shares are classified as share capital.

Expenses directly associated with issuing new shares or options with tax deductions, are recorded as reduction in received consideration in equity (premium on shares).

2.14 Accounts payable

Payables are measured at fair value at the first recognition. For subsequent measurements, payables are assessed at amortised cost determined by using the effective interest method.

2.15 Loans

Loans are recognised at the accrued amount when the loan is disbursed, less transaction costs. In subsequent periods, loans are recognised at amortised cost using the effective interest method. The difference between the disbursed loan amount (minus transaction costs) and the redemption value is recognised over the term of the loan.

When loans are renegotiated, a view is taken as to whether the renegotiated loan should be treated as a continuation of the old loan or as a new loan (IFRS 9.3.3.1-9.3.3.3). The main rule of IFRS 9.3.3.1 is that a financial liability should only be derecognised in cases where the liabilities specified in the contract have been discharged, cancelled or expired. When a company has its debts renegotiated without a change of lender, however, the old loan is derecognised and a new loan recognised if the renegotiation involves significant changes in the conditions related to the debt. If there are no significant changes, the difference between the present value of the modified cash flow and the original amortised cost is recognised through profit/loss (see Note 8).

2.16 Pension liabilities, bonus schemes and other compensation schemes for employees

a) Pension liabilities

The companies in the Group have different pension schemes. Pension schemes are mainly financed through payments to insurance companies or pension funds. The Group's pension schemes are a defined contribution scheme and defined benefit plans. A defined benefit plan is typically a pension scheme which defines a pension payment an employee will receive on retirement. Pension payments normally depend on several factors, such as age, number of years in the company, and salary.

The recognised liability associated with defined benefit plans is the present value of the defined benefits on the balance sheet date minus the fair value of the pension funds (in cases where the scheme is hedged). The pension liability is calculated annually by an independent actuary using a linear accrual method. The present value of the defined benefits is determined by discounting estimated future disbursements based on the interest on corporate bonds with high credit rating using OMF interest rates.

Changes in benefits from the pension plan are recorded as income or charged to expenses on an ongoing basis, unless the rights under the new pension scheme are conditional on the employee remaining in service for a specified period in the vesting period. In this case the cost associated with the changed benefit is amortised on a linear basis over the vesting period.

b) Bonus agreements and severance pay

In some cases, employment agreements are made which give the right to bonus in relation to fulfilment of defined financial and non-financial criteria, as well as agreements which give the right to severance pay if the employer terminates the employment. The Group raises provisions in cases where there is a formal obligation to make disbursements.

2.17 Provisions

The Group raises provisions for environmental improvements and legal requirements when: There is a statutory or self-imposed obligation arising from previous events, there is a strong likelihood that the obligation will have to be met in the form of a transfer of financial resources, and the size of the obligation can be estimated with a sufficient degree of reliability.

In cases where there is more than one obligation of the same nature, the probability of the obligation having to be met will be determined by assessing the group as a whole. Provisions for the Group are raised even though the probability of settlement with regard to the individual elements in the group is low.

Provisions are measured at present value of expected disbursements to fulfil the obligation. A discount rate before tax is used which reflects the current market situation and risk specific to the obligation. The increase in the obligation due to changes in time value is recorded as interest expenses.

2.18 Income and expense recognition principles

Income from the sale of goods and services is measured at fair value, net of commission, rebates and discounts. Intragroup sales are eliminated. Income is recognised as follows:

a) Sale of services

Except for the seismic fleet, most of the Group's vessels have been contracted on time charters (TC) throughout the year. This means that the charter is agreed as a lease of a vessel with crew. The charterer decides (within agreed limitations) how the vessel is to be used. The time charter lapses in periods when the vessel is not operational (is "off hire"), e.g. during repairs. The shipping company pays for the crew, supplies, insurance, repairs, administration, etc., while the charterer pays the "voyage-dependent" expenses such as bunkers, port fees and expenses for loading and unloading.

In addition to leasing the vessel, there may be agreements for additional services in the form of hiring extra crew, sale of provisions and coverage of other operating expenses.

Lease income for leasing vessels is recognised on a linear basis through the lease period. The lease period starts from the date when the vessel is at the lessee's disposal, and ends with its agreed return.

Lease of crew and payments to cover other operating expenses are recognised on a linear basis through the contract period

When a contract is cancelled, the remaining contract is recorded as income when the vessel is returned.

b) Interest income

Interest income is recognised proportionally over time in accordance with the effective interest method. When receivables are written down, the capitalised value is reduced to the recoverable amount. The recoverable amount is the estimated future cash flow discounted at the original effective interest rate. After impairment, the interest income is recognised on the basis of the original effective interest rate.

c) Dividend income

Dividend income is recognised when this has been determined by the General Meeting.

2.19 Public subsidies

Subsidies from the net pay scheme and the reimbursement scheme for seamen are recorded as a cost reduction (under "payroll expenses").

2.20 Dividends

Disbursements of dividends to the Company's shareholders are classified as debt from the date when the dividend is determined by the General Meeting.

2.21 Events after the balance sheet date

New information after the balance sheet date on the Company's financial position on that date has been considered in the annual accounts. Subsequent events that do not affect the Company's financial position on the balance sheet date, but will affect it in the future, are reported if they are significant.

2.22 Earnings per share accruing to the parent company's shareholders

The calculation of earnings per share is based on the majority share of net profit, using the weighted average outstanding number of shares through the year. The diluted earnings per share are based on the majority share of the net profit using the average outstanding number of shares and outstanding options.

2.23 Taxes

Taxes are expensed as they are incurred. The tax costs consist of tax payable and the change in deferred taxes. Deferred tax/deferred tax assets are calculated by the liability method. Deferred tax/deferred tax assets are calculated based on tax rates and tax legislation which has been adopted (or adopted for all practical purposes) on the balance sheet date, and which is assumed to be used when the deferred tax is settled. Deferred tax/deferred tax assets are calculated per tax area and is presented gross in the balance sheet.

Deferred tax assets are recognised to the extent that it is likely that there will be taxable income in the future, and that the temporary differences can be deducted from this income.

The parent company and some other companies in the Group are subject to ordinary taxation. Several companies in the Group are subject to tonnage tax, classified as an operating expense and not in accordance with IAS 12

Taxes abroad are recorded in the periods in which they are incurred. To the extent that tax is calculated on the basis of income, this is classified as an income reduction and presented together with operating income. Taxes abroad calculated on the basis of net profit are classified as tax costs.

2.24 Discontinued operations – assets and liabilities held for sale

Non-current assets (or disposal groups) are classified as 'held for sale' when the capitalised amount is mainly realised through a sales transaction, and a sale is considered highly likely. They are measured at the lower of capitalised value and fair value minus sales costs.

2.25 Changes in accounting policies

The accounting principles applied are consistent with the principles used in previous periods.

2.26 Significant accounting estimates and matters associated with uncertainty in estimates

Preparing accounts in accordance with applicable standards and practice requires the management to prepare estimates and make assessments that affect recorded assets and liabilities as well as information on contingent assets and latent obligations on the reporting date, including income and expenses for the reported period. The final outcomes may differ from the estimates. Some amounts included in or affecting the accounts and associated notes require estimates, which in turn mean that the Group has to make assessments with regard to values and matters which are not known at the time of preparing the accounts. A significant "accounting estimate" could be defined as an estimate which is important to giving a true picture of the Group's financial position, but is also the result of difficult, subjective and complex assessments made by the management. Such estimates are often uncertain by nature. The management reviews such estimates on an ongoing basis, based on both history and experience, but also from consultations with experts, trend analyses, and other methods which are considered relevant for each estimate. Estimates and assessments that could have a significant effect on the accounts are described below.

a) Vessels

- Economic life/useful life

The level of depreciation depends on the estimated economic life of the vessels. The estimate is based on history and experience related to the vessels which are included in the Group. The Group's main strategy is to keep the vessels until they are scrapped. However, there are ongoing evaluations where the main strategy can be deviated from when financial conditions dictate. The estimate is reviewed each year. A change in the estimate will affect depreciation in future periods.

- Residual value at the end of economic life

The level of depreciation depends on the estimated residual value on the balance sheet date. Expected residual value is based on the knowledge of scrap values for vessels. The scrap value is dependent on steel prices. The estimate of scrap value is subject to annual review.

- Impairment

On the balance sheet date, the Group has made an assessment of whether there are indications that vessels may need to be impaired. When such indications exist, the recoverable amount for the vessel is estimated, and the value of the vessel is written down to the recoverable amount.

Refer to Note 12 for more details on the principles that have been applied.

b) Leases

Recognition of leases and income

For contracts where the Group acts as a lessor, it classifies each of its leases as either an operating lease or a finance lease. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership of an underlying asset. The group as a lessor does not have any finance leases.

Operating leases

For operating leases, the Group recognises lease payments as other income, mainly on a straight-line basis, unless another systematic basis is more representative of the pattern in which benefit from the use of the underlying asset is diminished. The Group recognises costs incurred in earning the lease income in other operating expenses. The Group adds initial direct costs incurred in obtaining an operating lease to the carrying amount of the underlying asset and recognises those costs as an expense over the lease term on the same basis as the rental income.

c) Pension liabilities

Determination of the liabilities under defined benefit plans is a complex area because it requires estimates for both actuarial and financial assumptions. The liabilities are also measured on the basis of present value because the benefit will be paid many years in the future. The Group's assumptions are based on recommended assumptions from the Norwegian Accounting Foundation for the Norwegian schemes. The calculation of the pension liabilities is mainly influenced by the assumed discount rate.

d) Acquisition of assets

When several assets are acquired together, their individual cost must be determined. The Group uses valuation methods and assessments from third parties to determine the fair value of each identified asset, and allocates the total cost in relation to the individual values.

e) Joint ventures

The Company has the following joint ventures:

Eidesvik Seven AS	Bømlo	50%
Eidesvik Seven Chartering AS	Bømlo	50%

These are recorded by the equity method. In

f) Long-term receivables

Under other non-current receivables, EIOF recorded in 2017 a receivable of MUSD 27.5 (total MNOK 235). The 2017 accounts assumed that the receivables from Global Seismic Shipping AS had a value of 45% of par. Consequently, in the accounts as at December 31, 2017, these receivables were written down by 55%. No changes have been made to this as at December 31, 2020.

If the reason for the impairment lapses at a later time, and the lapse can be tied to an event taking place after the impairment is recognised, the previous impairment is reversed. This evaluation has to be made each quarter based on an overall assessment. Refer to Note 7 for a more detailed description/analysis.

As the repayments are repaid, the impaired part of the payment will be recorded as income. Any reversal will be recorded as other financial income.

Note 3 - Financial risk management

Financial risk

The Group is exposed to a variety of financial market risk factors through its activities. Financial market risk is the risk that fluctuations in exchange rates, interest rates and charter rates will affect the value of the Group's assets, liabilities and future cash flows.

The Group's overall risk management plan focuses on the unpredictability of the capital markets and seeks to minimize the potential adverse effects on the Group's financial performance. Elements included in the management of financial risk are the contract length on charters, use of currency and interest-bearing instruments, and debt in the same currency as expected payments of charter income. The main focus for the management of currency and interest rate risk is to hedge future cash flows. The hedge positions for

the cash flows are recorded at fair value with value changes through profit/loss. This exposes the accounts to fluctuations in the value of the hedging instruments for the cash flow. In Eidesvik Offshore ASA, risk management of the revenues reported in the accounts is subordinate to risk management of the cash flows.

The Group's risk management is handled by management according to guidelines from the Board.

a) Market risk

(i) Currency risk (see also Note 23)

The Group operates internationally and is exposed to fluctuations in exchange rates for several currencies. Currency risk arises from future transactions, and relates to booked assets and liabilities.

To manage the currency risk from future commercial transactions and booked assets and liabilities, the Group uses currency derivatives. The Group also, to a certain extent, have loans in the same currency as expected future income.

The Group is particularly exposed to fluctuations in USD, as it has considerable charter income but low operating costs in this currency. It seeks to reduce fluctuations with loans and currency forward contracts in the same currency. At December 31, 2020, the Group's long-term liabilities were divided between 44% NOK and 56% USD. At December 31, 2019 it was 45% NOK and 55% USD.

The Company's exposure to USD on the balance sheet date is shown in table below. The table below shows estimated change in net profit before tax in million NOK if the USD rate against NOK had been 50 øre higher/lower at December 31, 2020. The table does not reflect potential effects on impairment regarding value in use for vessels with income in USD.

	+50 øre	-50 øre
Operating profit before profit from associates and joint ventures	0,0	0,0
Profit from joint ventures	0,0	0,0
Net financial income excluding agio/disagio on long-term debt	-1,5	1,5
Agio/disagio on long-term debt	-55,3	55,3
Profit/loss for the year	-56,8	56,8
Translation difference, shares	15,0	-15,0
Total comprehensive income	-41,8	41,8

(ii) Interest rate risk (see also Note 23)

The Group's interest rate risk is related to long-term loans and deposits of surplus liquidity. Loans with floating interest rates involve a risk for the Group's cash flow. Fixed rate loans exposes the Group to fair value interest rate risk. The interest rate risk is managed by use of interest derivatives (swaps and caps) within guidelines from the Board.

The effect of a change in interest rates is simulated in order to support decisions on fixed rate contracts. The simulation illustrates the cash effect of a change in interest rate based on the size of the loan and the level of current interest rate hedging. An increase of 1 percentage point in the interest rate, all else being equal, would reduce net profit before tax by approximately MNOK 16. The Group's loans are recorded at amortised cost, and thus no change in value will occur from interest rate fluctuations.

(b) Credit risk

The Group has a concentration risk as charter contracts are signed with relatively few customers. Eidesvik's customers are mainly solid companies with good solvency. The risk of counterparties not having the financial capacity to fulfil their obligations is considered relatively low. Overdue receivables are followed up monthly. The Group has chosen to apply the practical simplification rule to calculate losses on accounts receivable. Loss provisions are raised based on historical data, adjusted for forward-looking factors specific to the debtors and the economic environment.

The following table categorises the Group's receivables according to the risk of non-recovery of outstanding amounts:

Accounts receivable	2020	2019
Group 1	84 453	91 105
Group 2	11 914	16 107
Group 3	5 049	48 348
Total	101 416	155 559

Group 1: Established customer relationship, good solvency/willingness

Group 2: New customers, possibly slow recovery

Group 3: Established customer relationship, weaker solvency/willingness

The Group has significant long-term receivables from a company in the Global Seismic Shipping AS group that was sold in January 2020. These receivables are posted in the accounts at a significantly lower value due to provisions for counterparty risk from the company's charterer. The recorded value of the receivables was measured for revenue recognition in 2017 at less than the nominal value. This was in accordance with observable sales of securities issued by the same counterparty. The credit risk on the receivables is considered to be lower, and indications of changes in the valuation of these are assessed continuously. The impairment of the long-term receivables has been reversed to reflect the repayments received. See Notes 5 and 13 for further information.

Maximum risk exposure is represented by the capitalised value of the financial assets, including derivatives, on the balance sheet. As the counterparties in derivatives trading are large well-known banks, the credit risk associated with derivatives is considered low.

(c) Liquidity risk

The Group aims to manage the cash flow from operations by focusing on long-term charters with little price volatility. Surplus liquidity is mainly placed in ordinary bank deposits.

The Group monitors the risk of a lack of available capital through liquidity budgets for subsequent years, as well as a monthly 24-month liquidity forecasts. Longer term liquidity forecasts for up to 5 years are prepared several times per year.

The current liquidity position of the Group is satisfactory, particularly taking into account the settlement of MUSD 30 from the sale of the shares in Shearwater GeoServices Holding AS. The Group's current projections of cash flow indicate that a revised agreement with its lenders will have to be in place within a period of 12 months.

See also Note 20 for information on amortisation profiles/refinancing needs for long-term liabilities.

The following table sums up the maturity profile for the Group's liabilities at December 31, 2020, based on contractual, non-discounted cash flows. Estimated interest is based on current interest and exchange rates at December 31, 2020.

Maturity statement for capitalised liabilities

	2021	2022	2023	2024	2025	Later
Loans	157 725	1 941 586	93 224	78 849	35 307	52 960
Accrued interest	8 871	0	0	0	0	0
Derivatives	12 389	7 357	0	0	0	0
Tax payable	0	0	0	0	0	0
Accounts payable	48 061	0	0	0	0	0
Other current liabilities	117 813	0	0	0	0	0
Pension liabilities (assumed maturity)	0	0	0	0	0	236
Subtotal debt items excl. market value derivatives	344 858	1 948 943	93 224	78 849	35 307	53 196

Estimated interest
Interest payments on existing loans	67 718	60 160	10 269	3 547	1 331	749
Adjustment incurred 31.12.2020	-8 871	0	0	0	0	0
Subtotal assumed interest	58 846	60 160	10 269	3 547	1 331	749

Leases
Leases (Note 22)	6 227	6 177	6 160	6 160	6 160	49 285

Total contractual commitments falling due	409 931	2 015 280	109 652	88 555		42 798 103 230

Risk management of capital

A primary goal for the Group is to secure long-term financing of its assets. In light of the challenging market, actions were implemented in 2017 and 2018 to strengthen the Group's liquidity and capital through the sale of vessels, repurchasing a bond loan at a discount, negotiations with creditors for reduced instalments, and raising new equity. This was implemented in order to secure the Group increased financial flexibility through a period of expected weaker market conditions and corresponding lower revenues.

The World-wide outbreak of the Covid-19 virus in 2020, in combination with the unprecedented decline in demand for oil and thus dramatic drop in oil prices, led oil companies to implement cost and capex saving measures that reduced demand for oil services. In light of the negative development of the market and outlook early 2020, Eidesvik entered into amendments to its credit facilities with all of the Group's financial institutions in June 2020 for the period from July 1, 2020, to June 30, 2021. The Group deferred the instalments on all its credit facilities during said period to the end of 2022, amounting to approximately MNOK 90. Further cost-saving initiatives were implemented both offshore and onshore. For further details on recent developments, refer to Notes 20 and and 27.

Covid-19 Pandemic

The Covid-19 pandemic generally increased several financial risks in 2020.

Currency risk: The volatility in the currency market increased significant during the outbreak of the pandemic.

Credit risk: The pandemic increased the general market uncertainty, and in combination with the drop in oil prices and the transition towards greener energy, the credit risk has increased more in oil and gas industries than in other industries. Eidesvik's customers are mainly solid companies with good solvency, which limits the increase in credit risk.

Liquidity risk: The current market uncertainty has increased the liquidity risk. However, Eidesvik has managed to secure several contracts during the period.

Assessment of fair value

IFRS 7 requires financial instruments measured at fair value on the balance sheet date to be presented by level, with the following level classification for measuring fair value:

1) Quoted price in an active market for an identical asset or liability (level 1)
2) Valuation based on other observable factors, either directly (price) or indirectly (derived from prices) other than the quoted price (used in level 1) for the asset or liability (level 2)
3) Valuation based on factors not taken from observable markets (non-observable assumptions) (level 3)

The following balance sheet items represent financial instruments at fair value:

Balance sheet item:	Level
Cash and cash equivalents	1
Derivatives	2
Financial investments	2

Derivatives are recognised on the basis of valuations from the counterparty (mark to market).

Debts to credit institutions with floating interest rates are recognised at amortised cost, and are valued at approximate fair value. Fixed-rate loans (CIRR) are recorded at amortised cost, and the estimated value is described in Note 23. The fair value of fixed-rate loans is calculated by discounting the difference between the fixed rate and the market rate at December 31, 2020, with a duration equal to the term of the loan.

Cost is considered equivalent to fair value for the equity investments discussed in Note 21.

Note 4 - Segment information

The Group's activities are divided into strategic operating segments according to the nature of the vessels' activities. The various operating segments offer different shipping services, address partially different customer groups, and have different risk profiles. The Group is divided into the following operating segments:

a. Seismic
b. Subsea/Offshore Wind
c. Supply
d. Other

The Seismic segment delivers shipping services to customers who produce seismic data, and the market has traditionally been characterised by relatively long contracts. Over the last few years this has changed to shorter term contracts for specific projects. The vessels belonging to this segment are not bound to particular geographical areas, but operate all over the world according to the customers' needs.

The Subsea/Offshore Wind segment delivers shipping services for subsea work for the oil industry. The vessels are specially adapted to tasks such as subsea inspection, maintenance, repairs and construction. Several of the Company's subsea vessels meet the requirements in the Offshore Wind market, and one vessel is currently chartered in this market.

The Supply segment delivers services to the offshore oil industry. The vessels deliver supplies to rigs, and function as part of the rig's emergency preparedness.

Transactions between segments are eliminated. These are mainly administration costs that are charged to each segment.

Long-term financial items in the Group are not allocated, as the Group's liabilities are mainly included in fleet facilities.

Short-term liabilities are allocated to the segments where possible. Items that do not belong to any of the segments is recorded under "Other".

Segment performance is assessed on the basis of operating profit, and is consistently measured against operating profit in the consolidated financial accounts.

The effect of applying IFRS 15 to the Group's revenues from contracts with customers is described in Note 2.

Operating segments

(NOK thousands)	Seismic		Subsea / Offshore Wind		Supply		Other		Consolidated
Operating segments	2020	2019	2020	2019	2020	2019	2020	2019	2020	2019

Segment result
Operating income (IFRS 15)	7 967	66 637	106 725	126 807	181 887	181 849	19 882	21 200	316 460	396 493
Bareboat income (IFRS 16)	31 259	120 109	106 425	83 290	76 614	81 668	0	0	214 299	285 067
Operating income from JV * (IFRS 15)	0	0	33 392	31 258	0	0	0	0	33 392	31 258
Bareboat income from JV * (IFRS 16)	0	65 781	38 507	39 855	0	0	0	0	38 507	105 637
Total operating income	39 226	252 527	285 049	281 211	258 501	263 517	19 882	21 200	602 658	818 455

Operating expenses	35 078	72 796	136 868	134 791	202 581	195 087	25 120	35 698	399 647	438 372
Operating expenses share from JV *	0	4 493	34 041	30 838	0	0	0	0	34 041	35 331
Total operating expenses	35 078	77 289	170 909	165 629	202 581	195 087	25 120	35 698	433 688	473 703

Depreciation	45 469	53 339	84 982	88 166	71 290	81 449	5 886	5 313	207 627	228 267
Depreciations share from JV *	0	50 908	19 174	19 126	0	0	0	0	19 174	70 034
Impairment on assets	54 108	178 300	46 139	240 200	20 432	151 200	0	0	120 679	569 700
Impairment on assets share from JV *	0	0	16 679	0	0	0	0	0	16 679	0
Total depreciation	99 577	282 547	166 975	347 492	91 722	232 649	5 886	5 313	364 160	868 001

Operating profit incl. share of the JVs *	-95 429	-107 308	-52 834	-231 911	-35 802	-164 219	-11 124	-19 811	-195 189	-523 249

Net finance items and tax in JV *	0	-30 727	-7 209	-9 079	0	0	0	0	-7 209	-39 807
Impairment JV **	0	-2 234	0	0	0	0	0	0	0	-2 234
Operating profit	-95 429	-140 269	-60 043	-240 990	-35 802	-164 219	-11 124	-19 811	-202 398	-565 289

Net financial items									67 838	-123 421
Tax costs									2 126	-1 563

Profit/loss for the year									-132 434	-690 273

In 2020, the Seismic / Offshore Wind segment had an impairment of MNOK 54.1, the Subsea segment MNOK 46.1 and the Supply segment NOK 20.4.

In 2019, the Seismic segment had an impairment of MNOK 178.3, the Subsea / Offshore Wind segment MNOK 240.2 and the Supply segment NOK 151.2.

*) For shares in joint ventures, the figures in the table are included with the share corresponding to the Group's ownership interest. The result of the joint venture Global Seismic Shipping AS includes EIOF`s share until May 31, 2019. Refer to Note 7.

**) Impairment of the shares in Global Seismic Shipping AS in 2019 with MNOK 2.2 to the agreed put option value on US\$ 30 million. Refer to Note 7.

(NOK thousands)	Seismic		Subsea / Offshore Wind		Supply		Other		Consolidated
Operating segments	2020	2019	2020	2019	2020	2019	2020	2019	2020	2019

Segment assets	201 885	326 029	1 118 298	1 193 863	724 222	766 218	469 210	241 478	2 513 614	2 527 587
Proportion of assets in JV *	0	0	355 567	416 936	0	0	0	0	355 567	416 936
Unallocated assets (cash)	0	0	0	0	0	0	0	0	429 183	408 319
Assets held for sale	0	264 848	0	0	0	0	0	0	0	264 848
Total consolidated assets	201 885	590 877	1 118 298	1 193 863	724 222	766 218	469 210	241 478	2 942 797	3 200 755
Assets incl. share of JV *	201 885	590 877	1 473 865	1 610 799	724 222	766 218	469 210	241 478	3 298 364	3 617 691


Segment current liabilities (excl. mortgage de	-2 907	-18 969	-35 752	-6 090	-29 370	-1 151	-123 413	-96 693	-191 443	-122 903
Proportion of debts from JV *	0	0	-201 251	-257 416	0	0	0	0	-201 251	-257 416
Segment mortgage debt and other long-term
liabilities	-436 315	-466 362	-1 077 425	-1 113 472	-836 754	-854 260	-74 656	-73 805	-2 425 151	-2 507 898
Total liabilities incl. share of JV *	-439 222	-485 331	-1 314 429	-1 376 978	-866 125	-855 411	-198 069	-170 497	-2 817 845	-2 888 217

Investments in non-current assets (excl.
periodic maintenance)	10 350	26 355	17 018	13 388	18 095	4 019	2 301	753	47 763	44 515
Gross sales of non-current assets	0	0	0	0	0	0	0	0	0	0

*) For shares in joint ventures, the amounts in the table are included in proportions equal to the Group's ownership interest.

Information on large customers

The majority of the Group's income is earned from a small number of large customers. The table below shows the total operating income from all customers representing more than 10% of the Group's operating income. The amounts are distributed by segments. Shares from joint ventures are included, and the group Global Seismic Shipping AS is represented with figures per May 31, 2019.

Operating segments	Seismic	Subsea / Offshore Wind			Supply
	2020	2019	2020	2019	2020	2019
Customer 1			81 322	82 755
Customer 2					142 104	130 960
Customer 3	29 027	91 756	36 097	71 026
Customer 4			71 899	71 114
Customer 5				68 676
Customer 6		43 793
Customer 7					100 761	78 770
Customer 8			136 314
Total operating income large customers	29 027	135 550	325 632	293 571	242 865	209 731

Secondary segments are not reported. The Seismic, Subsea/Offshore Wind and Supply business segments are the only groups reported internally. Although the vessels in the Seismic and Subsea/Offshore Wind segments operate in various parts of the world, this is mainly a

consequence of the customer's preferred areas of operation, not necessarily a decision on a geographical focus area. Presenting geographical areas for these segments is considered misleading. For the Supply segment, all operations in 2019 and 2020 are in just one geographical area defined as Europe. Secondary segmentations is therefore omitted.

The performance obligations for time charter income is satisfied over time, hence the group have not any contract assets or contract liabilities, as of December 31, 2020.

Note 5 - Other income

(NOK thousands)	2020	2019
Termination fee Viking Vanquish	0	38 554
Reversal of previous write-downs related to receivables	20 315	10 143
from JVs
Other income	20 315	48 697

In June 2019, Eidesvik and CGG agreed to terminate the bareboat contract for the seismic vessel Viking Vanquish, which expired in November 2020, with immediate effect. Therefore, the whole settlement for the contract was recorded in 2019 (MNOK 38.6).

Other income of MNOK 20.3 (10.1) is related to the reversal of previous impairments on repayments received against the claim against Oceanic Seismic Vessels AS; see first paragraph.

Note 6 - Other operating expenses

(NOK thousands)	2020	2019

Technical operation of vessels	103 847	89 720
Insurance	11 846	10 936
Communication costs	6 779	8 340
Administrative costs	4 345	18 965
Other expenses	0	0
Other operating expenses	126 817	127 962

Technical operation of vessels includes ongoing operating costs and maintenance of the Group's vessels; classification costs are capitalised and depreciated until the next classification and so do not appear as a separate operating cost.

Administration costs consist mainly of travel, consultancy, legal, audit, leasing and other office costs.

Auditor:

(NOK thousands)	2020	2019
Statutory audit	1 742	1 837
Other financial audit	73	410
Tax advice	410	265
Financial advice	0	28
Total audit	2 225	2 540

The auditor's fees are presented excluding VAT.

Note 7 - Investments in joint ventures and associated companies with minority interests (NOK thousands)

The Eidesvik Offshore ASA Group has the following investments in joint ventures:

Entity	Country	Industry	Ownership/	Book value	Share of profit	Translation	Dividends	Addition /	Assets held	Book value
			voting share	31.12.2019	2020	differences		disposal	for sale	31.12.2020
Eidesvik Seven AS	Norway	Shipping	50,0 %	146 039	-5 196	0	0	0	0	140 843
Eidesvik Seven Chartering AS	Norway	Shipping	50,0 %	13 481	-8	0	0	0	0	13 473
Total				159 520	-5 204	0	0	0	0	154 316

Entity	Country	Industry	Ownership/	Book value	Share of profit	Translation	Dividends	Addition /	Assets held	Book value
			voting share	31.12.2018	2019	differences		disposal	for sale (*)	31.12.2019
Global Seismic Shipping AS (consolidated)Norway		Shipping	50,0 %	292 110	-22 580	-6 120	0	0	-263 409	0
CGG Eidesvik Ship Management AS	Norway	Ship manager	51,0 %	1 439	0	0	0	0	-1 439	0
Eidesvik Seven AS	Norway	Shipping	50,0 %	135 144	10 895	0	0	0	0	146 039
Eidesvik Seven Chartering AS	Norway	Shipping	50,0 %	12 306	1 175	0	0	0	0	13 481
Total				440 998	-10 510	-6 120	0	0	-264 848	159 520

The sale of GSS to Shearwater was completed January 8, 2020. As consideration for Eidesvik's shares in GSS, Eidesvik has received shares in Shearwater (the "Consideration Shares"). As previously announced, CGG and Eidesvik have agreed on a put option for Eidesvik at US\$ 30

million for the Consideration Shares exercisable in a period of up to 36 months after closing of the transaction. Refer to Note 21.

(*) Assets held for sale

Eidesvik Offshore ASA and CGG Marine Resources Norge AS and CGG agreed June 4, 2019, on a term sheet for a transaction whereby CGG was contemplating to acquire Eidesvik's 50% ownership share in Global Seismic Shipping AS ("GSS"). The sale of GSS to Shearwater GeoServices Holding AS ("Shearwater") was completed January 8, 2020. As consideration for Eidesvik's shares in GSS, Eidesvik received shares in Shearwater, and is holding 3.75% of the outstanding shares in Shearwater. CGG and Eidesvik have agreed on a put option for Eidesvik at US\$ 30 million for the Shearwater shares exercisable in a period of up to 36 months after closing of the transaction. Refers to announcement made on Oslo Stock Exchange June 4, 2019 and January 8, 2020.

On the date of the term sheet, June 4, 2019, the shares was classified as "Assets held for sale". The 51% share Eidesvik owns in CGG Eidesvik Ship Management AS has also been classified as "Assets held for sale".

Eidesvik Seven AS and Eidesvik Seven Chartering AS are classified as joint ventures, as Subsea 7 Norge AS and Eidesvik each own 50% of the shares in the Company. Eidesvik Shipping AS is guarantor for 50% of the debt in Eidesvik Seven AS.

Summary of financial information for the joint ventures:

2020:
Entity	Assets	Non-current	Current	Of this bank	Equity	Liabilities	Long-term	Short-term
		assets	assets
Eidesvik Seven AS	655 226	553 557	101 669	81 111	281 685	373 541	0	373 541
Eidesvik Seven Chartering AS	55 907	0	55 907	23 100	26 946	28 961	0	28 961

Entity	Revenue	EBITDA	Depr. /	Financial	Financial	Net financial	Taxes	Profit/loss	Group share
			impairment	income	expenses	items		for the year
Eidesvik Seven AS	77 014	75 951	71 706	98	14 697	-14 599	0	-10 354	-5 197
Eidesvik Seven Chartering AS	143 798	-194	0	182	1	182	0	-13	-7
									-5 204

2019:
Entity	Assets	Non-current	Current	Of this bank	Equity	Liabilities	Long-term	Short-term
		assets	assets
Global Seismic Shipping AS (*)	3 480 890	3 249 245	231 645	203 627	599 760	2 881 130	2 711 671	169 458
CGG Eidesvik Ship Management AS	72 922	87	72 835	34 601	2 822	70 100	0	70 100
Eidesvik Seven AS	712 845	623 667	89 178	9 178	292 039	420 806	417 407	3 399
Eidesvik Seven Chartering AS	120 985	0	120 985	87 671	26 959	94 026	0	94 026
Entity	Revenue	EBITDA	Depr. /	Financial	Financial	Net financial	Taxes	Profit/loss	Group share
			impairment	income	expenses	items		for the year
Global Seismic Shipping AS (**)	131 563	122 577	101 816	56	61 511	-61 455	0	-40 694	-22 580
CGG Eidesvik Ship Management AS	20 992	-485	0	532	47	485	0	0	0
Eidesvik Seven AS	79 711	78 666	38 251	306	18 930	-18 624	0	21 791	10 895
Eidesvik Seven Chartering AS	142 227	1 884	0	476	11	466	0	2 350	1 175
									-10 510

(**) The result of the joint venture includes the Group`s share of the result until May 31, 2019, and an impairment of the shares in 2019 with MNOK 2.2 to the agreed put option value on MUS\$ 30. The company had a consolidated profit per December 31, 2019, of MNOK -90.8. Profit portion not booked in Eidesvik's accounts per December 31, 2019, was MNOK 25.0.

Subsidiaries with substantial minority interests

The Group has two subsidiaries where there are substantial minority interests. Of companies with minority interests, only the companies below are considered material.

2020:
Entity	Country	Minority interests (%)	Minority share of
			profit/loss
Eidesvik Supply AS	Norway	19,89 %	-4 006
Eidesvik Neptun AS	Norway	25,25 %	-2 752
Eidesvik Neptun II AS	Norway	25,25 %	-2 108
			-8 866

2019:
Entity	Country	Minority interests (%)	Minority share of profit/loss
Eidesvik Supply AS	Norway	19,89 %	-8 673
Eidesvik Neptun AS	Norway	25,25 %	-80 634
Eidesvik Neptun II AS	Norway	25,25 %	-2 042
			-91 350

Summary of financial information for subsidiaries with substantial minority interests:

2020
Entity	Assets	Non-current	Current	Of which bank	Equity	Liabilities	Long-term	Short-term
		assets	assets
Eidesvik Supply AS	171 715	155 161	16 554	3 446	-170 472	342 186	152 734	189 452
Eidesvik Neptun AS	832 270	771 863	60 406	15 212	-159 265	991 535	911 545	79 991
Eidesvik Neptun II AS	24 546	0	24 546	12 523	-22 359	46 905	0	46 905

Entity	Revenue	EBITDA	Depr. /	Financial	Financial	Net financial	Taxes	Profit/loss
			impairment	income	expenses	items		for the year
Eidesvik Supply AS	41 853	10 179	14 722	17	15 612	-15 595	0	-20 138
Eidesvik Neptun AS	73 734	51 637	49 251	26 721	40 006	-13 285	0	-10 899
Eidesvik Neptun II AS	28 092	-2 871	0	15	5 491	-5 476	0	-8 347

2019
Entity	Assets	Non-current	Current	Of which bank	Equity	Liabilities	Long-term	Short-term
		assets	assets
Eidesvik Supply AS	184 816	169 375	15 442	3 064	-150 333	335 149	163 156	171 993
Eidesvik Neptun AS	811 631	778 635	32 996	2 753	-148 366	959 997	842 705	117 292
Eidesvik Neptun II AS	18 170	508	17 662	9 996	-14 013	32 183	0	32 183

Entity	Revenue	EBITDA	Depr. /	Financial	Financial	Net financial	Taxes	Profit/loss
			impairment	income	expenses	items		for the year
Eidesvik Supply AS	38 054	18 614	45 812	31	16 438	-16 407	0	-43 606

Eidesvik Neptun AS 36 066 29 633 290 810 21 58 156 -58 136 0 -319 313 Eidesvik Neptun II AS 72 603 -7 725 0 46 310 -264 -98 -8 087

Note 8 - Net financial items

(NOK thousands)	2020	2019

Interest income	9 126	17 089
Other financial income	106 998	0
Mottatt aksjeutbytte
Total financial income	116 124	17 089

Interest expense on loans	-93 727	-120 318
Other interest expenses	-17 579	-11 591
Interest cost - lease liabilities	-3 142	-3 142
Reversal of previous write-downs of receivables	7 268	3 410
Other financial expenses	-12 106	-665
Total financial expenses	-119 286	-132 306

Realised currency gains (losses)	-11 675	-4 711
Unrealised currency gains (losses) - related to other	53 755	-5 865
items
Value change on currency futures recognised at fair	28 920	2 372
value via profit/loss
Total currency gains	71 000	-8 204

Net financial items	67 838	-123 421

Other financial income in 2020 is relates to reversed translation differences due to the sale of Global Seismic Shipping AS in January 2020.

Note 9 – Tax

(NOK thousands)	2020	2019
Tax cost Norway and abroad	-2 126	1 563
Tax costs	-2 126	1 563

Fixed asset reserve	46 136	36 510
Profit and loss account	-24 518	-38 110
Pension liabilities	-236	14 934
Loss carried forward	-578 472	-408 398
* Total temporary differences	-557 089	-395 064
Recognised deferred tax assets	0	0
Applied tax rate	22 %	22 %

Deferred tax assets are not recognised in the balance sheet due to uncertainty as to when such assets may be realised.

Tax payable
Tax payable for the year subject to the tonnage tax
regime	0	0
Other corporation tax payable, Norway and abroad	-832	790
Total tax payable	-832	790

Explanation of taxes in the income statement:
Profit/loss before taxes	-134 560	-688 710
Calculated 22%/22% tax	-29 603	-151 516

Tax effect of:
Permanent differences/ results subject to the tonnage
tax/ difference tax rate abroad	27 477	153 079
Calculated tax for the year	-2 126	1 563

The Group's effective tax rate	2 %	0 %

* Temporary differences are estimated based on preliminary tax assessments.

The tonnage tax, which is determined based on the vessel`s net weight, is booked as other operating expenses

Note 10 - Earnings per share

(NOK thousands)	2020	2019
Profit/loss for the year attributable to the parent	-123 569	-598 923


Number of issued ordinary shares (thousands)	62 150	62 150
Number of issued ordinary shares (thousands)	62 150	62 150

Earnings per share	-1,99	-9,64
Diluted earnings per share	-1,99	-9,64

No dividends were paid in 2020, and the Board has not proposed any payment of dividends in 2021. This is in line with the dividend restrictions in the existing covenants. Due to the financial restructuring completed in 2018 the dividend restrictions have been retained. See Note 20.

Note 11 - Payroll expenses and number of employees

(NOK thousands)	2020	2019

Payroll after net pay refund	177 798	191 226
Social security costs *	52 702	44 085
Defined benefit pension (see Note 18)	-6 411	8 600
Hired personnel	20 789	35 992
Other personnel costs	27 951	30 506
Total personnel costs	272 829	310 409

* Including pension costs related to defined contribution scheme

Salaries and payroll tax are shown after deduction for the reimbursement scheme for seafarers.

The average number of full-time equivalents was:	411	412
Number of employees at end of year:	420	514

In 2020, NOK 59,992 thousand (NOK 45,267 thousand in 2019) was received in connection with the reimbursement scheme for Norwegian seafarers.

In 2020, NOK 3,291 thousand (NOK 2,185 thousand in 2019) was received from Stiftelsen Norsk Maritim Kompetanse.

All received refunds are presented as a reduction of payroll expenses.

Note 12 - Tangible fixed assets

		Operating	Total other		Periodic	Total	New build
		equipment	fixed assets	Vessels	maintenance	vessels	contracts	Total (*)

37 414	3 717	40 228	81 359	5 943 794	260 182	6 203 976	0	6 285 335
0	0	2 301	2 301	45 463	92 202	137 665	0	139 966
0	0	0	0	0	0	0	0	0
37 414	3 717	42 529	83 660	5 989 257	352 385	6 341 641	0	6 425 301

19 095	3 494	38 493	61 082	3 897 545	198 793	4 096 338	0	4 157 421
348	0	784	1 132	151 942	49 799	201 741	0	202 874

								120 679
19 443	3 494	39 277	62 215	4 170 167	248 592	4 418 759	0	4 480 974
17 971	223	3 251	21 445	1 819 089	103 792	1 922 881	0	1 944 327
Impairment / reversal impairment	0	Property Port facilities 0	0	0	120 679	0	120 679	0

2019

		Port	Operating	Total other		Periodic	Total	New build
(NOK thousands)	Property	facilities	equipment	fixed assets	Vessels	maintenance	vessels	contracts	Total
Acquisition cost
1 January 2019	38 161	3 717	39 487	81 366	5 900 032	212 672	6 112 704	0	6 194 070
Addition	0	0	753	753	43 762	47 510	91 272	0	92 025
Disposal	-747	0	-12	-759	0	0	0	0	-759
31 December 2019	37 414	3 717	40 228	81 359	5 943 794	260 182	6 203 976	0	6 285 335
Accumulated depreciation and
1 January 2019	18 947	3 494	37 800	60 241	3 145 352	158 333	3 303 685	0	3 363 926
Depreciation in the year	148	0	693	842	182 494	40 460	222 953	0	223 795
31 December 2019	19 095	3 494	38 493	61 082	3 897 545	198 793	4 096 338	0	4 157 421
Book value	18 319	223	1 735	20 277	2 046 248	61 389	2 107 637	0	2 127 914

Please refer to Note 20 for information on mortgaged assets.

Refer to Note 2, point 2.5, for details of depreciation periods for vessels and lumping together of components.

Right-of-use asset TNOK 55 209 and depreciation TNOK 4 754 is not included in the table above. Refer to note 22 IFRS 16 Lease.

Property/port facilities include plots/land valued at MNOK 17.1 (MNOK 17.1) which are not depreciated.

Impairment tests are performed on individual cash generating entities (vessels) when indications of impairment are identified. Due to observed impairment indicators, the vessels' book values were tested for impairment per December 31, 2020. Based on these tests, impairments of MNOK 120.7 related to eight vessels were charged to the accounts

The Group monitors the presence of impairment indicators during the periodical financial reporting, and thus may update its assessments of impairments to reflect further changes in the underlying market assumptions.

Broker estimates are not used as an approximate sales value on the balance sheet date as there are few observed sales of the type of vessels the Company owns. In the assessment of value in use, expected future cash flows are used, discounted to net present value using a discount rate after taxes reflecting the market-based time value of money, as well as risk specific to the asset. The discount rate is derived from a weighted average cost of capital (WACC) for market players. The WACC used in the calculation as of April 29, 2021 is in the range of 8.4% to 8.6%, depending on currency for each vessel, with a weighted average of 8.5%. This takes into account that the Group's business is mainly within the tonnage tax system, and the calculated WACC is assumed to apply both before and after tax. Future cash flows are estimated on the basis of estimated remaining useful life, which may exceed 5 years. The cash flows used in the impairment tests for 2020 are based on and reconciled against the financial forecasts which the Group uses for internal planning purposes as well as present to its lenders. The capital structure used in the weighted average cost of capital is based on an assumed capital structure in comparable companies with similar assets in a normal situation. Equity cost is based on the expected required rate of return for the Company's investors. Debt costs are based on the terms of the Group's loan agreements, which is marginally above the Company's weighted average for all interest-bearing liabilities. The beta factors are evaluated annually on the basis of publicly available market data for identified comparable companies and the main index on the Oslo Stock Exchange. Other important elements in estimated cash flows are the long-term inflation rate, the contract situation (order reserve), the utilisation rate, ordinary operating expenses, periodic maintenance (docking), charter rates, and exchange rates. In the impairment tests concluding on the impairments in the annual accounts for 2020, an additional liquidity premium of 3 percentage points has been included in the WACC-calculation stated above in order to reflect an increased liquidity and risk premium currently associated with the Group's business and market. The additional liquidity premium of 3 precentage points was included in 2019 as well.

In 2020, the Seismic segment had an impairment charge of MNOK 54.1 (recoverable amount MNOK 195.6), the Subsea segment MNOK 46.1 (MNOK 1,082.4) and the Supply segment MNOK 20.4 (MNOK 815.2). In 2019, impairment of MNOK 569.7 were charged.

There is significant uncertainty associated with the assumptions for the value in use calculations. The calculation is based on market prospects which are weak in all three segments in the short and medium term. On a general view, it is considered that the seismic survey market will see a few years after the balance sheet date where layups or reduced rates must be expected for the vessels that are not on fixed contracts. The same considerations apply to the subsea and supply markets.

The expected future earnings used in the calculations are implicitly adjusted for utilisation rate adapted to this general market view. Therefore, sensitivity calculations have also been performed for the value in use calculations and the impaired amounts, in order to highlight the uncertainty in the calculations.

If the earnings or utilisation rate for the entire fleet are assumed to be reduced by 5%, the impairment would increase by MNOK 106.3 and cover nine vessels. If the WACC assumed had increased to 9.0%, the impairment charge would have increased by MNOK 7.7and included nine vessels.

Note 13 - Other long-term receivables

(NOK thousands)	31.12.2020	31.12.2019
Loan for onboard supplies	294	313
Long-term receivables, customers	0	508
Long-term receivables, OSEV	64 161	96 036
Total other long-term receivables	64 455	96 857

Long-term receivables from OSEV are related to the company Oceanic Seismic Vessels AS (subsidiary of Global Seismic Shipping AS, "GSS"), regarding the reorganisation of shares in the company and the establishment of GSS (sold in January 2020), as well as the receipt of receivables against the same companies from CGG as part-settlement for the amendment in the contract for Viking Vanquish in 2017. The nominal value as at December 31, 2020, was MUSD 16.55 (MUSD 22.25 as at December 31, 2019), but the value recognised in the accounts is substantially lower due to provisions for counterparty risk with the company's charterer. In 2020 repayments were paid in accordance with the agreed plan, and write-downs on the payments received were reversed (see Note 5 and Note 8).

Note 14 - Accounts receivable

(NOK thousands)	31.12.2020	31.12.2019
Accounts receivable	89 643	137 157
Accounts receivable related parties/join ventures	13 173	19 985
Provision for losses	-1 400	-1 582
Total accounts receivable	101 416	155 559

Of overdue accounts receivable related to other than related parties, the distribution before provisions for loss is:

0-3 months	6 557	27 010
3-6 months	605	1 666
6 months <	6 722	8 253
Total overdue accounts receivable	13 884	36 929

Of overdue accounts receivable related to other than related parties, the expected loss rate is as follows:

0-3 months	0 %	0 %
3-6 months	0 %	0 %
6 months <	21 %	19 %

Recorded value of the Group's accounts receivable per currency:
EUR	25 817	20 759
USD	2 220	42 169
GBP	47	10 789
NOK	73 333	81 843
Total accounts receivable	101 416	155 559

Net change in provisions for impairment of accounts receivable:
	2020	2019
At January 1	1 582	1 582

Provision for impairment of receivables -182 0 Accounts receivable recorded as loss during the year 0 0

At December 31 1 400 1 582

Note 15 - Other current assets

(NOK thousands)	31.12.2020	31.12.2019
Inventories (bunkers and lube oil)	16 845	14 293
Other shares	34	34
VAT receivable	4 113	6 780
Insurance settlement receivable	7 627	953
Accrued unbilled income	2 574	25 769
Net payroll	15 186	15 513
Prepaid expenses	18 844	20 969
Total other current assets	65 224	84 312

Prepaid expenses include expenses for pre-paid insurance, provisions for refund for crew costs and other grants, unbilled expenses for expenses and loan to employees (see Note 24).

In 2019, accrued unbilled income was mainly related to the termination of the contract for Viking Vanquish. The charterer continued to pay hire until the ordinary end of the contract, November 2, 2020.

Note 16 - Cash and cash equivalents

Of total cash and cash equivalents at December 31, 2020, of MNOK 429.2 (MNOK 408.3 at December 31, 2019), restricted tax funds represent MNOK 6.9 (MNOK 6.7). Restricted cash of MNOK 45.8 (MNOK 47.0) related to the insurance settlement for Viking Vision is set as security for the related loan, and MNOK 14.7 (MNOK 0) is funding restricted to the ammonia project. There are no other restricted funds.

Note 17 - Share capital and premium

Changes in paid share capital:
(NOK thousands)		Number of shares
	2020	2019	2020	2019
Ordinary shares
Opening balance	62 150	62 150	3 108	3 108
At December 31	62 150	62 150	3 108	3 108

Nominal value per share in Eidesvik Offshore ASA is NOK 0.05 (5 øre).

The 20 largest shareholders in Eidesvik Offshore ASA as at December 31, 2020:

		Number	Ownership
Shareholder	Country	of shares	share
EIDESVIK INVEST AS	NORWAY	37 200 000	59,86 %
JAKOB HATTELAND HOLDING AS	NORWAY	3 061 741	4,93 %
VINGTOR INVEST AS	NORWAY	1 434 719	2,31 %
STANGELAND HOLDING AS	NORWAY	1 096 401	1,76 %
BERGTOR INVESTERING AS	NORWAY	1 096 401	1,76 %
HJELTEFJORDEN AS	NORWAY	1 010 000	1,63 %
TVEITÅ, EINAR KRISTIAN	NORWAY	761 000	1,22 %
SKANDINAVISKA ENSKILDA BANKEN AB	NORWAY	508 922	0,82 %
HELLAND AS	NORWAY	474 585	0,76 %
CALIFORNIA INVEST AS	SWEDEN	455 000	0,73 %
TVEITÅ, OLAV MAGNE	NORWAY	441 700	0,71 %
COLORADO EIENDOM AS	NORWAY	390 000	0,63 %
SKANDINAVISKA ENSKILDA BANKEN AB	NORWAY	382 386	0,62 %
MELING, JAN FREDRIK	NORWAY	335 244	0,54 %
DUNVOLD INVEST AS	NORWAY	317 688	0,51 %
NORDNET BANK AB	NORWAY	301 178	0,48 %
CAIANO SHIP AS	SWEDEN	272 575	0,44 %
ROGNE, HELGE	NORWAY	271 377	0,44 %
SWEDBANK AB	NORWAY	270 758	0,44 %
MORLAND, ARNE	NORWAY	267 683	0,43 %
Others		11 800 642	18,99 %
Total		62 150 000	100,00 %

The Company had 1,637 shareholders as at December 31, 2020. Foreign share owners held 3.1% of the shares.

Note 18 - Pensions and other long-term employee benefits

The Company is required to have an occupational pension scheme under the Mandatory Occupational Pensions Act. The Company's pension schemes satisfy the requirements of this Act.

Defined benefit pension

This has been replaced by a defined contribution scheme.

The estimated payment into the defined benefit scheme in 2021 is NOK 273 thousand.

Capitalised liability is determined as follows:
(NOK thousands)	2020	2019
Net present value of accrued defined benefit pension
liabilities in fund based schemes	3 256	100 391
Fair value of pension funds	-3 020	-93 558
Net capitalised pension liability/fund December 31	236	6 834

Changes in defined benefit pension liability during the year:

	2020	2019
Pension liability January 1	100 391	101 581
Net present value of pension contribution of the year	230	7 072
Interest expenses	363	2 581
Transfer/acquisition/moving members/new contracts	-97 530	0
Payroll tax on employer's contribution	-12	-1 530
Actuarial loss/(gain)	0	-2 702
Benefits paid	-187	-6 612
Pension liability December 31	3 256	100 391

Change in fair value of pension funds:

	2020	2019
Pension funds January 1	93 558	88 934
Expected return on pension funds	44	2 046
Transfer/acquisition/moving members/new contracts	-90 570	0
Actuarial (gains)/losses	-96	-1 660
Payroll tax on employer's contribution	-12	-1 530
Employer's contribution	95	12 381
Benefits paid	0	-6 612
Pension funds December 31	3 020	93 558

Total cost included in net profit:

	2020	2019
Cost of pension contribution for the period	6 163	6 041
Net changes in plan, scaling down, settlement	-6 960	0
Interest expenses	142	157
Expected return on pension funds	290	151
Administrative costs	28	362
Payroll tax on pension costs	889	874
Total, included in payroll expenses (Note 11)	-6 411	7 586

Estimate deviations due to changes in actuarial assumptions included in other income and costs (OCI):

	2020	2019
Changes in the discount rate	330	1 609
Changes in other financial assumptions DBO	37	-1 251
Changes in other DBO	-517	-4 310
Changes in other - pension funds	18	2 364
Funds and interest guarantees	41	547
Estimate deviation losses/(gains) against OCI	-91	-1 042

The pension funds are placed in various investments through external insurance companies. They manage all transactions for the pension schemes. Breakdown into investment categories:

	2020	2019
Shares	7 %	13 %
Bonds	51 %	45 %
Real estate	14 %	11 %
Money market	11 %	17 %
Other	17 %	14 %

To calculate pension costs and net pension liabilities, the following assumptions are used:

	2020	2019
Discount rate	1,70 %	2,30 %
Return on pension assets	1,70 %	2,30 %
Wage growth	2,25 %	2,25 %
Pension adjustment	0,00 %	0,50 %
G adjustment	2,00 %	2,00 %

The discount rate is based on interest on covered bonds (OMF), whereas this was previously based on the government bond rate.

Mortality table K2013 BE is used as a basis for mortality.

Sensitivity of the calculation of pension liability to changes in the assumptions: The table below shows an estimate of potential effects of a change in certain assumptions for defined benefit pension schemes in Norway.

Change in amount	Discount rate
	1,00 %	-1,00 %	Annual wage growth 1,00 %	-1,00 %
Total
Pension liability PBO	2 778	3 839	3 256	3 256
Pension cost for period SCC	211	275	240	240
Active members
Pension liability PBO	2 778	3 839	3 256	3 256
Pension cost for period SCC	211	275	240	240
Pensioners
Pension liability PBO	-	-	-	-

Risk assessment

Through the defined benefit schemes, the Group is affected by a number of risks arising from uncertainty in assumptions and future developments.

The key risks are described here:

Life expectancy

The Group has undertaken to pay pensions to the employees for the remainder of their lives. So an increase in life expectancy among the members will lead to an increase in the liability for the Company.

Return risk

The Group is affected by a reduction in the actual return on the pension funds. This will lead to an increase in the liability for the Company, as the return on the funds will not be sufficient to meet the obligation.

Inflation and wage increase risk

The Group's pension liability carries risk associated with both inflation and wage growth, although wage development is closely linked to inflation. Higher inflation and wage growth than assumed in the pension estimates will lead to a larger liability for the Group

Note 19 - Other liabilities

(NOK thousands)	31.12.2020	31.12.2019
Public taxes and charges	26 592	28 411
Salaries and holiday pay	32 925	29 508
Accrued expenses	58 297	24 514
Debt to joint ventures	0	0
Total other current liabilities	117 813	82 433

Accrued expenses are mainly related to provisions for accrued operating costs and docking/average adjustment.

Other long-term liabilities are related to prepaid costs on Eidesvik SHIP-FC project.

Note 20 - Long-term liabilities

Book value
			31.12.2019

CIRR loan	Mar. 2024	167 109	171 063
NIBOR loan	Dec. 2022	69 009	69 421
CIRR loan	Sep. 2024	184 115	188 125
NIBOR loan	Dec. 2022	95 313	98 530
NIBOR loan	Dec. 2022	157 142	159 594
NIBOR loan	Dec. 2022	46 986	47 829
NIBOR loan	Dec. 2022	116 934	118 427
NIBOR loan	Dec. 2022	115 156	116 765
NIBOR loan	Dec. 2022	110 415	114 265
LIBOR loan	Dec. 2022	522 984	543 162
LIBOR loan	Feb. 2027	311 142	325 170
LIBOR loan	Dec. 2022	229 131	247 581
LIBOR loan	Dec. 2022	40 972	43 985
LIBOR loan	Dec. 2022	122 032	127 398
LIBOR loan	Dec. 2022	44 180	47 398
LIBOR loan	Dec. 2022	27 031	28 365
			987
Capitalised establishment costs			-12 984
			2 435 081
			2 435 081
Short-term portion of long-term liabilities		-157 725	-93 756
Total long-term liabilities excl. first year's repayment		2 193 798	2 341 326

			93 756
			11 558
			105 314


			1 072 022
			1 363 059 2 435 081
	Total interest-bearing long-term liabilities Book value of liabilities in currency	Maturity	31.12.2020 1 028 -9 155 2 351 523 2 351 523 157 725 8 871 166 596 1 054 051 1 297 472 2 351 523

Amortisation profile on long-term liabilities at December 31, 2020:

2021	157 725
2022	1 941 586
2023	93 224
2024	78 849
2025	35 307
Later	52 960
Total repayments	2 359 650

On January 8, 2021, Eidesvik exercised the PUT-option for its shares in Shearwater GeoServices Holding AS ("Shearwater") effectively selling all its shares in Shearwater to CGG SA for a total consideration of USD 30 million in cash. As a consequence of receipt of the cash settlement of MUSD 30 in January 2021, the deferred instalments from the second half of 2020 and the first half of 2021 become due during the first half of 2021.

Of total long-term liabilities, MNOK 2,332.6 are secured against mortgages in vessels recorded at MNOK 1,922.9.

For an assessment of the fair value of long-term liabilities, see Notes 3 and 23.

Change in liabilities	Interest expenses	Interest-bearing	Current lease	Interest-bearing	Non-current
		short-term debt	liabilities	long-term debt	lease liabilities	Total
At January 1, 2020		105 314	3 256	2 341 326	57 923	2 507 818
Repayment of debt		-52 303	-3 061	0	0	-55 364
Interest paid	-89 171	-11 558	0	0	0	-100 729
Cash flow from financing	-89 171	-63 861	-3 061	0	0	-156 094
Exchange rate effects		3 329	0	-38 453	0	-35 124
Capitalisation costs		0	0	3 829	0	3 829
Interest accrued but not paid		8 871		0	0	8 871
Other changes		112 943	3 061	-112 903	-3 061	40
At December 31, 2020		166 596	3 256	2 193 798	54 862	2 418 512

Covenants

The majority of the Company's fleet is financed with mortgage loans, mainly fleet loans. After restructuring, the most important financial covenants are:

Free liquidity of MNOK 125.
Positive working capital, adjusted for 50% of first year's repayment of long-term debt.
Minimum clauses are suspended to December 31, 2021, and then reinstated at 100%.
Limitations on investments and dividends.

There are also clauses related to change of control concerning the Eidesvik families.

No companies in the Eidesvik Offshore Group were in breach of any covenants at December 31, 2020, or during 2020.

At December 31, 2020, free liquidity was MNOK 331, and working capital was MNOK 581.

Financial restructuring

The World-wide outbreak of the Covid-19 virus, in combination with the unprecedented decline in demand for oil and thus dramatic drop in oil prices, led oil companies to implement cost and capex saving measures that reduced demand for oil services. In light of the negative development of the market and outlook early 2020, Eidesvik entered into amendments to its credit facilities with all of the Group's financial institutions in June 2020 for the period from July 1, 2020, to June 30, 2021. The Group deferred the instalments on all its credit facilities during said period to the end of 2022, amounting to approximately MNOK 90. On certain terms, the Group may still pay the deferred instalments should the Group's liquidity position during the first half of 2021 be better than presumed.

As a consequence of the cash settlement of MUSD 30 in January 2021 from the exercise of the Shearwater PUT-option, the deferred instalments become due during the first half of 2021.

In the 1st Quarter of 2018, the Group agreed on an amendment to its loan agreements with its lenders to reduce amortisation of its secured loans to facilitate for a runway through 2022. A condition for the financial restructuring was, amongst others, that the Group obtained at least MNOK 120 in new equity and that the Group's MNOK 30 shareholder loan was converted to equity. In addition, a subsequent offer of MNOK 30 was completed in 1st Quarter 2018.

Summary of the restructuring

Amortization:

72.5% reduction in amortizations until June 30, 2021 (compared to original amortization schedule)
Certain repayments up-front: 75% of the proceeds from sale of tradeable CGG bonds was applied to reduce secured debt (remaining 25% to be applied for instalments in 2018-2020)
Cash sweep:
o Cash in the cash sweep calculations exceeding the following thresholds will be swept:
- MNOK 490 per year-end 2018
- MNOK 350 per year-end 2019
- MNOK 245 at 30 June 2021 and 30 June 2022

Interest rates:

• No amendments

Financial covenants:

Minimum free liquidity of MNOK 125
Positive working capital (current assets less current liabilities and 50% of short-term portion of long-term liabilities, excluding balloons)
Loan to value:
o Suspended through 2021
o Thereafter (2022) maximum 100% per vessel

Other covenants:

Change of control: If Eidesvik Invest AS or the Eidesvik family controls less than 33.4% of the shares and votes in the Group, or
Someone other than Eidesvik Invest AS gains negative control in the Group

Consequences of the financial restructuring

The revised debt maturity plan and strengthened liquidity position provided the Group with ability to withstand a weaker market for a prolonged period, and the financial covenants was structured in a manner which had lower risk of not being in compliance with them.

Eidesvik has started negotiations with its lenders aiming to secure a robust balance sheet and liquidity based on the current market and market outlook. It is still too early to predict the outcome of the negotiations with the lenders. For further information, refer to Note 27.

Note 21 - Other shares

(NOK thousands)

Shares:
Entity	Country	Industry	Ownership/voting	Book value	Book value
			share	31.12.2020	31.12.2019
Simsea Holding AS	Norway	Training	10,4 %	0	0
Bleivik Eiendom AS	Norway	Real estate	22,6 %	655	655
Eidesvik Ghana Ltd.	Ghana	Shipping	49,0 %	1 065	1 065
Total				1 720	1 720

Simsea is a simulation centre for training nautical personnel. Bleivik Eiendom AS leases out properties to companies conducting safety training for maritime personnel.

Simsea Holding AS was written down to NOK 0 because of the bankruptcy of Simsea AS in the winter of 2017. Eidesvik Ghana Ltd has been written down to its share of book equity.

The investments are valued by the equity method.

Financial investments:
Entity	Country	Industry	Ownership/voting	Book value	Book value
			share	31.12.2020	31.12.2019
Shearwater GeoService Holding AS (*)	Norway	Shipping	3,75 %	255 978	0

(*) Eidesvik and CGG Marine Resources Norge AS and CGG S.A. ("CGG") agreed June 4, 2019 on a term sheet for a transaction whereby CGG was contemplating to acquire Eidesvik's 50% ownership share in Global Seismic Shipping AS ("GSS"). The sale of GSS to Shearwater GeoServices Holding AS ("Shearwater") was completed January 8, 2020. As consideration for Eidesvik's shares in GSS, Eidesvik received shares in Shearwater, and these are classified as "Financial investments" in the balance sheet per December 31, 2020.

Note 22 - Leases

(NOK thousands)

Right-of-use assets

IFRS 16 "Leases" sets out the principles for the recognition, measurement and disclosure requirements for both parties to a lease contract. IFRS 16 is effective for reporting periods beginning on or after January 1, 2019. The Group adopted IFRS 16 on the effective date using a modified retrospective approach and will not restate comparative information.

The Group is both a lessor, as it charters vessels to customers, and a lessee. The new requirements result in significant changes to the accounting model applied by lessees and will primarily affect the Group's accounting for the operating leases as a lessee. The accounting for lessors will not significantly change.

To determine whether a contract contains a lease, it is considered whether the contract conveys the right to control the use of an identified asset. This is for the Group considered to only be the case for office leases and vehicles. The Group has long term lease agreements on office premises and vehicles that will be affected by implementation of IFRS 16. For the Group, these lease commitments will result in the recognition of an asset (right-of-use) and a lease liability. The rental period is calculated based on the duration of the agreement plus any option periods if these with reasonable certainty will be exercised. Joint expenses etc. are not recognised in the lease liability for the rental contracts.

As permitted by IFRS 16, the Group chose to measure the right-of-use asset equal to the amount of the liability at the implementation date. The future payments under each lease arrangement have been discounted using the incremental borrowing rate applicable to the leased assets in order to calculate the lease liability recognized on the date of adoption.

The Group has used the following practical expedients when applying IFRS 16 to leases previously classified as operating leases under IAS 17:

Applied the exemption not to recognise right-of-use assets and liabilities for leases with less than 12 months of lease term
Excluded initial direct costs from measuring the right-of-use assets at the date of initial application

The liabilities were measured at the present value of the remaining lease payments, discounted using the lessee's incremental borrowing rate as of 1 January 2019. The weighted average lessee's incremental borrowing rate applied to the lease liabilities on January 1, 2019 was 5.0%. As of January 1, 2019, the implementation effects were as following:

Right-of-use assets in the statement of financial position increased by MNOK 64.4
Lease liability in the statement of financial position increased by MNOK 64.4
Effect on equity amounted to 0

There will be some changes to the Group's profit by reclassification from operational expenses to depreciation and financial expenses and the cash flow statement for leases will be affected with lease payments being presented as financing activities as opposed to operating activities. Some of the Groups commitments relates to arrangements that will not qualify as leases under IFRS 16.

Right-of-use assets	Buildings	Vehicles	Total
Acquisition cost January 1, 2020	64 048	386	64 434
Addition of right-of-use assets			0
Disposals			0
Transfers and reclassifications			0
Acquisition cost December 31, 2020	64 048	386	64 434

Accumulated depreciation and impairment January 1, 2020
Depreciation 2019	4 293	179	4 472
Depreciation 2020	4 575	179	4 754
Impairment losses in the period			0
Disposals			0
Transfers and reclassifications			0
Accumulated depreciation and impairment December 31, 2020	8 868	358	9 226

Carrying amount of right-of-use assets December 31, 2020	55 180	28	55 208

	2,5 - 33	8-17
Lower of remaining lease term or economic life	years	months

Lease liabilities
Undiscounted lease liabilities and maturity of cash outflows	Buildings	Vehicles	Total
Less than 1 year	6 498	33	6 531
1-2 years	6 476	0	6 476
2-3 years	6 460	0	6 460
3-4 years	6 460	0	6 460
4-5 years	6 460	0	6 460
More than 5 years	51 682	0	51 682
Total undiscounted lease liabilities at December 31, 2019	84 036	33	84 069

Summary of the lease liabilities	Buildings	Vehicles	Total
At initial application 01.01.2020	60 982	197	61 178
New lease liabilities recognised in the year			0
Installment	-5 991	-180	-6 171
Interest expense on lease liabilities	3 095	15	3 110
Total lease liabilities at December 31, 2020	58 086	32	58 116

Current lease liabilities	3 224	32	3 256
Non-current lease liabilities	54 862	0	54 861
Total cash flow for leases			6 171


Effect on the profit and loss statement			2020
Other operating expenses Depreciations - Right-of-use assets			6 171 -4 754
Interest cost - lease liabilities			-3 110
Net effect profit and loss statement			-1 693

The Group as lessor

The Group's main activity is leasing of offshore tonnage. See overview as of April 28, 2021, below.

Vessels, consolidated	Contract type	Customer	Contract expiry, fixed		Contract expiry, charterer's option
Viking Lady	Time charter	Aker BP	December	2021
Viking Queen	Time charter	Equinor	January	2022	December 2022
Viking Athene	Sold
Viking Avant	Time charter	Equinor	December	2022
Viking Energy	Time charter	Equinor	April	2025
Viking Prince	Time charter	Aker BP	August	2021
Viking Princess	Time charter	Wintershall	January	2022	January 2026
Acergy Viking	Time charter	Siemens Gamesa	January	2027
Subsea Viking	Time charter	Seabed Geosolutions	September	2021
Viking Neptun	Time charter	Havfram	October	2021	November 2021
Viking Vanquish	Layup
Viking Vision	Layup
Veritas Viking	Bareboat	Seabird	October	2021
Vantage	Layup

Vesssels in joint ventures	Contract type	Customer	Contract expiry, fixed		Contract expiry, charterer's option
Seven Viking	Time charter	Subsea 7	December	2025	December 2026

Future minimum lease terms as at April 28, 2021, for consolidated vessels on firm contracts have the following maturity:

Next 1 year	472 000
1 to 5 years	678 000
After 5 years	79 000
Future minimum lease	1 229 000

The Group has operating lease contract on its vessels representing income. The leases have terms of between 4 and 73 months. As payments from the lessee to the Group is determined based on the fixed day rate agreed in the contract, no portion of the payments varies other than the passage of time.

Note 23 - Financial instruments

(NOK thousands)

Capitalised financial assets and liabilities

Capitalised value equals fair value, except for loans. For details of fair value loans, see the section on "Interest" below. The Group does not practise hedge accounting, financial derivatives held for financial hedging which are recorded at fair value.

	31.12.2020	31.12.2019
Assets
Market-based shares for trading	9	9
Currency derivatives	25 284	1 262
Other shares (Note 21)	1 720	1 720
Financial investments (Note 21)	255 978	0
Accounts receivable (Note 14)	101 416	155 559
Cash and cash equivalents (Note 16)	429 183	408 319
Total	813 591	566 869


Liabilities
Currency derivatives	0	0
Interest rate derivatives	20 600	12 211
Loans (Note 20)	2 359 650	2 447 077
Total	2 380 250	2 459 289

Currency

The Group has entered into currency derivative contracts as part of the management of the Group's currency exposure. The contract terms are as follows:

At December 31, 2020	Currency sold	Amount	Maturity	Exchange rate (average)	Fair value (MTM)
Currency derivatives
Currency futures for the sale of current cash flow	EUR	9 165	2021-2022	10,3680	-1 183
Currency futures for the sale of current cash flow	USD	3 000	2021	9,2083	2 037
Currency option, put	USD	25 000	2021	9,5000	24 430
		12 165			25 284

At December 31, 2019	Currency sold	Amount	Maturity	Exchange rate (average)	Fair value (MTM)
Currency derivatives
Currency futures for the sale of
current cash flow	EUR	10 960	2021	10,1223	621
Currency futures for the sale of	USD	3 700	2020	8,6066	-658
Currency futures for the sale of	GBP	5 665	2021	11,9051	1 299
		20 325			1 262

All currency futures are recorded at fair value.

Interest

The Group has the following fixed rate agreements:

At December 31, 2020

							Annual
							downscaling
						Fair value (excl.	before maturity
Type	Currency	Floor	Cap/Swap	Maturity	NOK principal	accrued interest)	(average)
Fixed rate loan	NOK		3,36 %	27.03.2024	167 109		28 750
Fixed rate loan	NOK		3,41 %	13.09.2024	184 115		29 166
Swap	USD		2,92 %	23.12.2021	217 581	-5 959	None
Swap	USD		2,36 %	21.11.2022	170 652	-7 466	None
Swap	USD		2,27 %	12.12.2022	170 652	-7 175	None
Cap	NOK		1,00 %	01.07.2025	150 000		None
Cap	NOK		1,00 %	15.07.2025	150 000		None
Cap	USD		1,00 %	01.07.2025	213 315		None
Cap	USD		1,00 %	15.07.2025	213 315		None
Unhedged					722 911
Total liabilities, hedged and unhedged					2 359 650	-20 600

At December 31, 2019
							Annual
							downscaling
						Fair value (excl.	before maturity
Type	Currency	Floor	Cap/Swap	Maturity	NOK principal	accrued interest)	(average)
Fixed rate loan	NOK		3,36 %	27.03.2024	171 063		28 750
Fixed rate loan	NOK		3,41 %	13.09.2024	188 125		29 166
Swap	USD		2,92 %	23.12.2021	223 898	-5 588	None
Swap	USD		2,36 %	21.11.2022	175 606	-3 704	None
Swap	USD		2,27 %	12.12.2022	175 606	-2 919	None
Unhedged					1 512 780
Total liabilities, hedged and unhedged					2 447 078	-12 211

At December 31, 2020, 69% (38%) of the Group's loans were at fixed interest or swap/cap.

The Group has two fixed-interest loans in NOK with a maturity of 12 years originally (CIRR), which are recorded at amortised cost in the balance sheet. If these loans were to be refinanced today with a new margin and money market rate, and retained the same repayment profile, the net present value of the difference between the current interest payments and the refinanced interest payments would be MNOK 15.8 (level 2, see Note 3). If these loans were recorded at fair value, they would have been reported correspondingly higher.

See Note 20 for information on long-term loans.

Other information

No financial assets have been reclassified such that the valuation method has been changed from amortised cost to fair value, or vice versa.

For assessment of fair value (MTM), see Note 3.

Note 24 - Transactions with related parties

(NOK thousands)

The Group has some transactions with related parties, concerning crew hire, management services for vessel operations, business and accounting services and leasing of offices. All transactions are based on the arm's length principle.

	2020	2019
Sale of crew and management services to Viking Dynamic AS	0	76
Lease of vessel to Maritime Logistic Services AS	0	-1 519
Lease of offices from AS Langevåg Senter	-8 137	-7 925
Lease of offices services to Langevåg Senter AS	0	135
Lease of offices to Evik AS	586	784
Lease of apartment from Evik AS	-13	0
Lease of offices to Bømmelfjord AS	488	840
Lease of other services from Bømmelfjord AS	-4	0
Lease of offices and other services to Eidesvik Invest AS	764	1 005
Lease of stockroom and other services from Eidesvik Invest AS	-375	-476
Sale of crew and management services to Eidesvik Seven Chartering AS	70 791	69 891
Sale of management services to Eidesvik Seven AS	1 546	108
Sale of management services to Oceanic Seismic Vessels AS *	6 360	319
Sale of crew and office services to CGG Eidesvik Ship Management AS *	0	14 484
Sale of crew and office services to CGG Eidesvik Crewing I AS *	0	83
Sale of office services and lease of apartment to Bømlo Skipservice AS	73	5
Purchase of technical and layup services from Bømlo Skipservice AS	-3 529	-5 954
Sale of management services to Geo Vessels AS *	9 695	6 051
Sale of management services to Global Seismic Vessels AS *	86	227
Lease of stockroom and other services from Klubben Eiendom AS	-117	0

* These companies were sold January 8, 2020. Refer to note 7 and 21.

The balance sheet includes the following amounts resulting from transactions with related parties:

	31.12.2020	31.12.2019
Accounts receivable	13 098	19 985
Other current assets (see also note 15)	0	0
Accounts payable	-385	-806
Total	12 714	19 179

Shares owned/controlled by Board members/senior executives:
	2020	2019
Eidesvik Invest AS (1)	37 200 000	37 200 000
Kolbein Rege	136 450	136 450
John Egil Stangeland	30 000	30 000
Jan Fredrik Meling	335 244	335 244
Jan Lodden	3 242	3 242

(1) 55%-controlled by Borgny Eidesvik, Board member, via 20% holding in Bømmelfjord AS ("A" shares). The remaining 45% is owned by Lars Eidesvik, Board member, through 100% ownership in Evik AS.

The Eidesvik Offshore ASA Group is a subsidiary of Eidesvik Invest AS, which is a subsidiary of the ultimate parent company Bømmelfjord AS.

A guarantee has been given by the company under S479A of the Companies Act 2006 in regard to the subsidiary Eidesvik UK Limited, a company registered in England and Wales, Company number 10013204.

Remuneration to senior executives:

		Benefits	Pension
2020	Salary	in kind	costs
CEO	2 174	144	242
COO	1 660	100	120
CFO	1 554	172	110
Total 2020	5 388	416	471

		Benefits	Pension
2019	Salary	in kind	costs
CEO	2 494	130	289
COO	2 000	16	113
CFO	1 383	16	105
Total 2019	5 877	162	508

The CEO has a bonus scheme on given terms up to MNOK 0.5, which is subject to an overall assessment. The entire executive team except the CEO have a mutual notice period of 3 months. The CEO has a mutual notice period of 6 months and is entitled to 18 months of severance pay on certain terms.

Remuneration of the Board	2020	2019
Kolbein Rege	502	502
Borgny Eidesvik	272	272
Lars Eidesvik	230	230
Synne Syrrist	272	272
John Egil Stangeland	230	230
Lauritz Eidesvik	230	115
Kristine Elisabeth Skeie	230	115
Petter Lønning	76	0
Børre Lindanger	40	0
	2 081	1 736

Petter Lønning and Børre Lindanger were, respectively, elected as employee representative and deputy employee representative for the board in 2019, and did not receive any remuneration in 2019.

Note 25 - Liabilities and unexpected events

The Company has a framework agreement with Reach Subsea AS for WROV services for the vessel Viking Neptun. Remaining commitment for 2021 is firm MNOK 7.3.

Note 26 - Exchange rates

	Average exchange rate 2020	Exchange rate 31.12.2020	Average exchange rate 2019	Exchange rate 31.12.2019
Euro	10,7207	10,4703	9,8527	9,8638
UK pound	12,0514	11,6462	11,2307	11,5936
US dollar	9,4004	8,5326	8,8037	8,7803

Exchange rates from the Norwegian Central Bank's website.

Note 27 – Subsequent events and other information

Shearwater PUT-option

In January 2021, Eidesvik exercised the PUT-option for its shares in Shearwater GeoServices Holding AS ("Shearwater") effectively selling all its shares in Shearwater to CGG SA for a total consideration of USD 30 million in cash. As a consequence of receipt of the cash settlement of MUSD 30 in January 2021, the deferred instalments from the second half of 2020 and the first half of 2021 become due during the first half of 2021.

Financing

Eidesvik is currently negotiating with its lenders aiming to reduce the debt service commitments from the second half of 2021. Even though it is still too early to predict the outcome of the negotiations with the lenders, the Board is optimistic that an agreement can be reached during the second quarter of 2021, giving support to its going-concern considerations for the Group. Based on the information above, the Board of Directors would like to emphasize that there is material uncertainty related to the going concern assumption.

New contracts

Eidesvik was awarded a time charter with Siemens Gamesa Renewable Energy GmbH & Co. KG for Acergy Viking. The contract will commence in direct continuation of the current contract extending the firm period until end January 2027.

Eidesvik was awarded a time charter contract with Aker BP ASA for Viking Prince. The contract was awarded under the current Frame Agreement for a drilling campaign indicated for a period up to 120 days, with commencement April 2021.

Eidesvik was awarded a contract by Seabed Geosolutions under the Master Time Charter Agreement for Subsea Viking. The contract will commence in direct continuation of the existing contract. The firm period is approximately 4 months with options for extensions.

Eidesvik Offshore ASA was awarded a new contract by Equinor Energy AS for the PSV Viking Queen. The contract commenced in April 2021, in direct continuation of existing contract with Equinor. The new firm contract period is 10 months, with options for further extensions.

Other

In April 2021, Eidesvik sold Viking Athene. Delivery of the vessel took place April 28, 2021. The vessel will after the sale exit the North Sea supply vessel market and be utilized by the new owner in the sea farming industry.

ANNUAL ACCOUNTS – PARENT COMPANY

STATEMENT OF PROFIT AND LOSS – PARENT COMPANY (NOK 1,000)

	Note	1.1.-31.12. 2020	1.1.-31.12. 2019

Payroll etc.	8.9	5,715	5,274
Depreciation	3	105	105
Other operating expenses	8.11	6,295	6,018
Total operating expenses		12,116	11,398

Operating profit		-12,116	-11,398

Interest income from companies in the same group	6	11,332	10,196
Other interest income		163	756
Other financial income	10	2,481	0
Impairment of financial assets	2	0	-286,088
Interest expenses to companies in the same group	6	-3,029	-4,133
Other financial expenses	10	-11,531	-34
Net financial items		-583	-279,303

Profit/loss before taxes		-12,698	-290,701

Tax costs	4	0	0

Profit/loss for the year		-12,698	-290,701

Allocation (coverage) of profit/loss for the year
Transferred to/from other equity		-12,698	-290,701
Total allocated (covered)		-12,698	-290,701

STATEMENT OF BALANCE SHEET – PARENT COMPANY (NOK 1,000)

	Note	31.12.2020	31.12.2019
Assets

Tangible fixed assets
Buildings and land		8,921	8,921
Operating equipment		393	498
Total tangible fixed assets	3	9,314	9,419

Financial assets
Investments in subsidiaries	2	242,517	242,517
Loans to Group companies	6	97,327	16,686
Other financial assets	2	56	263,465
Pension funds	9	0	127
Total financial assets		339,900	522,795

Total non-current assets		349,214	532,215

Current assets
Receivables
Other receivables		30	1,820
Total receivables		30	1,820

Financial investments	2	265,878	0

Bank deposits, cash etc.	1	34,421	62,729

Total current assets		300,329	64,549

TOTAL ASSETS		649,543	596,763

STATEMENT OF BALANCE SHEET – PARENT COMPANY

(NOK 1,000)

	Note	31.12.2020	31.12.2019
EQUITY AND LIABILITIES

Paid-in equity
Share capital	7	3,108	3,108
Share premium	5	177,275	177,275
Other paid-in equity	5	549	549
Total paid-in equity		180,932	180,932

Retained earnings
Other equity		296,409	309,107
Total retained earnings		296,409	309,107

Total equity	5	477,341	490,039

LIABILITIES
Other non-current liabilities
Liabilities to Group companies	6	171,052	105,739
Pension liabilities	9	236	0
Total other non-current liabilities		171,288	105,739

Current liabilities
Accounts payable		424	481
Public duties payable		244	242
Other current liabilities		246	262
Total current liabilities		914	985

Total liabilities		172,202	106,724

TOTAL EQUITY AND LIABILITIES		649,543	596,763

Bømlo, April 29, 2021

Kolbein Rege Chairman of the Board	Borgny Eidesvik Board member	Lars Eidesvik Board member	John Egil Stangeland Board member
Synne Syrrist	Lauritz Eidesvik	Kristine Elisabeth Skeie	Børre Lindanger
Board member	Board member	Board member	Board member
Jan Fredrik Meling

CEO

STATEMENT OF CASH FLOWS – PARENT COMPANY

(NOK 1,000)

		1.1-31.12	1.1-31.12
	Note	2020	2019
Cash flow from operations
Payments to suppliers and employees	8.11	-10,103	-12,442
Interest received/paid		163	756
Net cash flows from operations		-9,940	-11,686
Cash flow from investment activities
Purchase of tangible fixed assets		0	0
Acquisition of shares		0	0
Acquisition of other financial assets		0	0
Net cash flow from investment activities		0	0
Cash flow from financing activities
Issuance of share capital	7	0	0
Received interest	10	-3,038	6,063
Repayment of debt to subsidiaries/joint ventures	6	-15,328	-42,179
Net cash flow from financing activities		-18,366	-36,116

Net increase (decrease) in cash and cash equivalents	1	-28,307	-47,801
Cash and cash equivalents at start of period	1	62,729	110,530
Cash and cash equivalents at end of period		34,421	62,729

NOTES TO THE ANNUAL ACCOUNTS – PARENT COMPANY

Accounting principles

The financial statements have been prepared in accordance with the Norwegian Accounting Act of 1998 and generally accepted accounting principles.

Classification and valuation of balance sheet items

Current assets and short-term liabilities include items maturing within one year after the balance sheet date. Other items are classified as fixed assets/long-term liabilities.

Current assets are valuated at the lower of acquisition cost and fair value. Short-term liabilities are capitalised at nominal value at the time of establishment.

Non-current assets are valued at acquisition cost, but depreciated to fair value if the impairment in value is not expected to be transient. Long-term liabilities are capitalised at nominal value at the time of establishment.

Accounts receivable

Accounts receivable and other receivables are listed in the balance sheet at fair value after deduction of provisions for expected loss. Provisions for loss are made on the basis of individual assessments of individual receivables. An unspecified provision is also made for other accounts receivable in order to cover presumed loss.

Currency

Monetary items in foreign currency are valued according to the exchange rate at the end of the accounting year.

Subsidiaries/associated companies

Subsidiaries and associated companies are valued according to the cost method in the company accounts. The investment is valued at acquisition cost for the shares, unless write-downs have been necessary. Group contributions to subsidiaries, with taxes deducted, are listed as increased cost for shares. Dividends/group contributions are recorded in the same year as the provision is made in the subsidiary/associated company. When a dividend/group contribution substantially exceeds the share of retained profits after the acquisition, the excess amount is treated as a repayment of invested capital, and is deducted from the value of the investment in the balance sheet.

For loans to subsidiaries, refer to Note 6.

Tangible fixed assets

Tangible fixed assets are capitalised and depreciated over the useful life of the asset. Maintenance of fixed assets is expensed on an ongoing basis under operating costs, while upgrades or improvements are added to the cost of the asset and depreciated in step with the asset. The distinction between maintenance and upgrades is calculated in relation to the condition of the asset when it was acquired.

Tax

The tax costs in the income statement include both tax payable for the period and the change in deferred taxes. Deferred tax assets are calculated at 22% on the basis of the temporary differences that exist between accounting and tax values, and losses carried forward for tax purposes at the end of the accounting year. Temporary differences that increase and decrease taxes and that reverse or may reverse during the same period are offset and netted off.

Pension liabilities

The Company finances its pension liabilities to the employees through a group pension scheme. Accounting is done in line with the NRS 6 accounting standard for pension costs. Pension liabilities are calculated as the present value of future pension benefits considered to be incurred on the balance sheet date, based on the fact that employees acquire their pension rights evenly throughout their working lives. Pension funds are valued at fair value and are netted against the pension liabilities for each pension scheme. Net pension funds are presented as long-term receivables under financial assets. The net pension cost for the period is included in payroll and social security costs, and consists of the pension entitlements for the period, interest costs on the calculated pension liabilities, expected returns on the pension funds, recorded effects of changes in estimates and pension plans, recorded effects of discrepancies between actual and expected returns, and accrued payroll tax.

The effects of changes in pension plans are expensed in the period in which they occur.

Cash flow statement

The cash flow statement has been prepared according to the direct method. Cash and cash equivalents include cash, bank deposits, and other short-term liquid placements which can be converted to known cash amounts immediately and without significant risk of bankruptcy and which mature in less than three months from the date of acquisition.

Note 1 – Bank deposits

Of the MNOK 34,42 (MNOK 62,73) in bank deposits, restricted tax funds represent MNOK 0.211 (MNOK 0.142).

Note 2 - Investments in subsidiaries and associated companies

Subsidiary

		Owner share /				Equity at
Company	Share capital	voting share	Number	Nominal	Book value	31.12.2020 () Profit 2020 ()
Eidesvik Shipping AS	170,749	100 %	291 380	586	164 038	416 769	-164 481
Eidesvik AS	11 000	100 %	11 000	1 000	76 720	135 632	-6 595
Eidesvik Shipping Int. AS	100	100 %	100	1 000	104	10 597	3 504
Eidesvik Subsea Vessels AS	100	100 %	1 000	100	112	43 789	-474
Hordaland Maritime Miljøs. AS	4483	91 %	39 933	100	563	508	-33
Eidesvik Management AS	100	100 %	1 000	100	9	-1 526	173
Norsk Rederihelsetjeneste AS	100	100 %	100	1 000	784	478	-116
Eidesvik Maritime AS	100	100 %	1 000	100	112	-2 685	-11 893
Eidesvik Neptun II AS	88	74,75 %	747 474	0,10	75	-22 359	-8 347
Eidesvik Shipping II AS	100	100 %	1	1 000	1	-99 641	-9 964
Eidesvik UK Ltd.	0	100 %	1	1	0	722	-46
Eidesvik Neptun AS	792	74,75 %	594	0,1	0	-159 265	-10 899
Total					242 517

Impairments in 2020 was MNOK 0 (MNOK 217.38)

Associated companes

	Owner share /					Equity at
Company	Share capital	voting share	Number	Nominal	Book value	31.12.2020 () Profit 2020()
Global Seismic Shipping AS(**)		0 %	0
Eidesvik Seven Chartering AS	100	50 %	5000	10	56	26 946	-13
Total					56

Impairments in 2019 relate to write-downs of shares in GSS of MNOK 28.74.

	Owner share /			Equity at
Company	Share capital	voting share	Number	Nominal	Book value 31.12.2020 () Profit 2020()
Shearwater GeoService Holding AS (**)		3,75 %			265 878

(*) Based on preliminary accounts.

(**) Eidesvik and CGG Marine Resources Norge AS and CGG S.A. ("CGG") agreed June 4, 2019 on a term sheet for a transaction whereby CGG was contemplating to acquire Eidesvik's 50% ownership share in Global Seismic Shipping AS ("GSS"). The sale of GSS to Shearwater GeoServices Holding AS ("Shearwater") was completed January 8, 2020. As consideration for Eidesvik's shares in GSS, Eidesvik received shares in Shearwater, and these are classified as "Financial investments" in the balance sheet per December 31, 2020.

Note 3 - Summary of tangible fixed assets

	Residential	Transport	Inventory and	Non-depreciable
	property	equipment	equipment	assets	Total
Acquisition cost 1 January	8 921	526	1 248	156	10 851
Addition	0		0	0	0
Disposal	0		0	0	0
Acquisition cost 31 December	8 921	526	1 248	156	10 851
Accumulated depreciation 1 January	0	184	1 248	0	1 432
Depreciation in the year	0	105	-	0	105
Reduction in depreciation	0	0	0	0	0
Accumulated depreciation 31 December	0	289	1 248	0	1 537
Booked value 31 December	8 921	237	0	156	9 313
Depreciation rates	0 %	20 %	10 %	0
Depreciation method		Linear	Linear

65 Eidesvik Offshore ASA

Note 4 - Taxes

Tax expense for the year

	2020	2019
Recognised tax on ordinary profit:
Tax payable	-	-
Change in deferred tax assets	-	-
Tax expense on ordinary profit	-	-
Taxable income:
Ordinary profit before tax	-12 698	-290 701
Permanent differences	5 237	286 088
Changes in temporary differences	381	-112
Group contributions made	-	-
Use of loss carry-forward	-	-
Taxable Income	-7 080	-4 725
Tax payable in the balance sheet:

Tax payable on profit for the year	-	-
Tax payable on group contributions made	-	-
Total tax payable in the balance sheet	-	-

Tax effect of temporary differences and loss carry-forwards which have given rise to deferred tax and deferred tax assets, broken down by categories of temporary differences:

	2020	2019	Change
Tangible fixed assets	-114	-97	17
Pension funds	-236	127	363
Total	-351	30	381

Accumulated loss carry-forward	-12 832	-5 752	7 080
Basis for calculating deferred tax	-13 183	-5 722	7 461

Deferred tax assets (22%)	-2 900	-1 259	1 641
Effect of change of tax rate	-	13	-

No deferred tax assets have been posted.

Note 5 - Equity

			Other paid-in	Other
	Share capital	Share premium	equity	equity	Total
Equity 31.12.19	3 108	177 275	549	309 107	490 039
Profit/loss for the year				-12 698	-12 698
Equity 31.12.20	3 108	177 275	549	296 409	477 341

Note 6 - Long-term receivables from and loans to subsidiaries

Receivables	2020	2019
Eidesvik Shipping AS	0	0
Eidesvik Management AS	3 211	3 151
Eidesvik Supply AS	17 197	11 657
Eidesvik Neptun AS	76 920	0
Eidesvik Neptun II AS	0	37
Eidesvik Shipping International AS	0	66
Eidesvik MPSV AS	0	1 775
Total	97 327	16 686

Liabilities	2020	2019
Eidesvik AS	50 969	52 068
Eidesvik Shipping AS	102 511	53 672
Eidesvik MPSV AS	17 572
Total	171 052	105 739

The interest on the intercompany balances is calculated quarterly using 3-month NIBOR + 1% margin.

The Company has provided guarantees for loans in subsidiaries. A guarantee commission of 0.25-1.00% has been charged for this, depending on the net outstanding amount covered by the guarantee.

Impairments in 2019 relate to write-downs of long-term receivables Eidesvik Neptun AS of MNOK 39.96.

A guarantee has been given to subsidiary company Eidesvik UK Limited for an audit exemption under UK Companies Act 2006 Section 479A/C.

Note 7 - Share capital and shareholder information

The Company's share capital consists of 62,150,000 shares at NOK 0.05 each. All shares have equal voting rights.

For the 20 largest shareholders in Eidesvik Offshore ASA as at 31.12.2020, see Note 17 to the consolidated accounts.

	2020	2019
Eidesvik Invest AS (1)	37 200 000	37 200 000
Kolbein Rege	136 450	136 450
John Egil Stangeland	30 000	30 000
Jan Fredrik Meling	335 244	335 244

(1) 55%-controlled by Borgny Eidesvik, Board member, via 20% holding in Bømmelfjord AS ('A' shares). The remaining 45% is owned by Lars Eidesvik, Board member, through 100% ownership in Evik AS.

Note 8 - Payroll costs, number of employees, remuneration, loans to employees

Payroll costs	2020	2019
Salaries	2 598	2 494
Payroll tax	556	665
Pension costs	242	248
Board remuneration	2 081	1 736
Other remuneration	238	131
Total	5 715	5 274

The Company had 1 employee at the end of the year. The Company has established an occupational pension scheme.

Remuneration to the CEO:	2020	2019
Salary	2 598	2 494
Pension costs	242	248
Other remuneration	137	130
Total	2 977	2 872

The CEO has a bonus scheme on given terms up to MNOK 0.5, which is subject to an overall assessment. The CEO has a mutual notice period of 6 months. He is also entitled to 18 months of severance pay on certain terms.

Remuneration to the Board:	2020	2019
Kolbein Rege	502	502
Borgny Eidesvik	272	272
Lars Eidesvik	230	230
Synne Syrrist	272	272
John Egil Stangeland	230	230
Lauritz Eidesvik	230	115
Kristine Elisabeth Skeie	230	115
Børre Lindanger	39,5	0
Petter Lønning	75,5	0
	2 081	1 736

* Board remuneration is decided by the General Meeting. Disbursements for 2020 are for the period up until the next General Meeting.

Auditor	2020	2019
Expenses to auditor are distributed as follows:
Statutory audit	868	801
Financial advice	0	28
Tax advice	410	4
Other certification services	18	410
Total expenses to the auditor excl. VAT	1 296	1 243

Note 9 - Pension costs and liabilities

The Company's pension schemes meet the requirements of the Mandatory Occupational Pensions Act.

The Company has pension schemes which cover its only employee. The schemes give rights to future benefits. These depend mainly on the number of qualifying years, salary level at retirement and the amount of the benefits from national insurance. The liabilities are covered through an insurance company.

	2020	2019
Estimated liability	3 256	2 861
Value of pension funds	3 020	2 988
Under/over-funded	-236	127

Reconciliation of this year's pension cost	2020	2019
Present value of this year's pension contribution	225	221
Interest expense on the pension liability	5	5
Expected return on pension funds	0	0
Administrative costs	28	27
Changes in this year's pension contribution incl. interest and payroll tax	-3	-5
Net changes in plans, scaling down, settlement and payroll tax	0	0
Net pension cost	256	248

The following economic and actuarial assumptions form the basis of the calculation:

	2020	2019
Discount rate	1,70 %	2,30 %
Return on pension assets	1,70 %	2,30 %
Wage growth	2,25 %	2,25 %
Pension adjustment	0,00 %	0,50 %
G adjustment	2,00 %	2,00 %

Note 10 - Long-term liabilities

	2020	2019
Long-term debt - bond loan	0	0
Capitalised establishment costs on long-term debt	0	0
Total long-term liabilities	0	0

Financial market risk

The Company has provided guarantees for all ship mortgage debt in the consolidated subsidiaries. The guarantees involve substantial risk. The Company has no currency risk. For more details, see the discussion of financial risk management in Note 3 to the consolidated accounts.

Note 11 - Other operating expenses

	2 020	2019
Management and accounting	5 000	5 000
Investor relations costs	730	517
Financial advice	3 453	608
Statutory audit	691	801
Consultant/legal advice	1 654	165
Office lease	412	505
Margin reinvoice office lease	-1 779	-2 454
Other reinvoices	-415	-876
Other expenses	729	1 752
Total other operating expenses	10 475	6 018

Of which, from related parties:

Management and accounting services, MNOK 5.0 (MNOK 5.0) provided by the subsidiary Eidesvik AS.

The offices are leased from Langevåg Senter AS, a wholly-owned subsidiary of Eidesvik Invest AS, the Company's largest shareholder.

The lease on the office runs to 2033, with 6 x 5-year options thereafter. The gross lease cost is MNOK 6.3 (MNOK 6.3).

The offices are subleased, 23% to companies related to the principal shareholder, and 69% to the subsidiary Eidesvik AS.

8% of the premises are used by the lessor itself. The item "Office lease" represents this share

Appendix 1 – Alternative performance measures definitions

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

The definitions of these measures are as follows:

Contract coverage: Number of future sold days compared with total actual available days (incl. vessels in layup), excluding options.
Backlog: Sum of undiscounted revenue related to secured contracts in the future.
Utilization: Actual days with revenue divided by total actual available days.
Equity Ratio: Equity divided by total assets
Net interest bearing debt: Interest bearing debt less current and non-current interest bearing receivables and cash and cash equivalents. The use of term "net debt" does not necessarily mean cash included in the calculation are available to settle debt if included in the term. Reference is made to Note 12.
EBITDA: Operating result (earnings) before depreciation, impairment, amortisation, net financial costs and taxes is a key financial parameter. The term is useful for assessing the profitability of operations, as it is based on variable costs and excludes depreciation, impairment and amortised costs related to investments. EBITDA is also important in evaluating performance relative to competitors. See table below for matching to the accounts.
EBIT: Operating result (earnings) before net financial costs and taxes. See table below for matching to the accounts.
Working capital: Current assets less short-term liabilities.
Minimum market value clause: Booked value of an asset shall not be lower than a given ratio compared to outstanding debt on the same asset.

	2020	2019
	1.1 - 31.12	1.1 - 31.12
Total operating income	530 760	681 559
Total operating expenses	(399 647)	(438 371)
EBITDA	131 113	243 188

Ordinary depreciation	(207 628)	(228 267)
Impairment on assets	(120 679)	(569 700)

Profit from Joint Ventures	(5 204)	(10 510)

EBIT	(202 398)	(565 289)

73 Eidesvik Offshore ASA

Asbjørn Rødal
Statsautorisert revisor
Serial number: 9578-5999-4-4255051
IP: 145.62.xxxxxx
2021-04-29 12:57:39Z

Eidesvik Offshore ASA

AI assistant

Eidesvik Offshore — Annual Report 2020

3586_10-k_2021-04-29_e94da727-38ba-4eae-9adf-6e397cc9190d.pdf

CONTENTS

2020 – ANOTHER CHALLENGING YEAR

KEY FIGURES

THE BOARD OF DIRECTORS

KOLBEIN REGE (CHAIRMAN OF THE BOARD)

BORGNY EIDESVIK (BOARD MEMBER)

LARS EIDESVIK (BOARD MEMBER)

JOHN STANGELAND (BOARD MEMBER)

SYNNE SYRRIST (BOARD MEMBER)

LAURITZ EIDESVIK (BOARD MEMBER)

KRISTINE SKEIE (BOARD MEMBER)

BØRRE LINDANGER (EMPLOYEE ELECTED BOARD MEMBER)

REPORT OF THE BOARD OF DIRECTORS 2020

THE BUSINESS

HEALTH, SAFETY AND THE ENVIRONMENT

External environment

SHAREHOLDERS, CORPORATE GOVERNANCE AND MANAGEMENT

PROFIT & LOSS, BALANCE SHEET AND FINANCIAL RISK

Profit & loss

Balance sheet

Cash flow

Profit allocation

Going concern

Financial risk

Currency risk

Credit risk

Liquidity risk

FRAMEWORK CONDITIONS

CORPORATE SOCIAL RESPONSIBILITY

BUSINESS SEGMENTS AND OUTLOOK

Supply

Subsea/Wind

Seismic

Bømlo, April 29, 2021

CORPORATE GOVERNANCE

PRINCIPLES AND VALUES FOR CORPORATE GOVERNANCE IN EIDESVIK OFFSHORE ASA

Business

Equity and dividends

Equal treatment of shareholders and transactions with close associates

Shares and negotiability

General Meetings

Nomination committee

Board of Directors: composition and independence

The work of the Board of Directors

Risk management and internal control

Remuneration of the Board of Directors

Remuneration of executive personnel

Information and communications

Take-overs

Auditor

HSEQ REPORT FOR 2020

INTRODUCTION

INCIDENT REPORTING

QUALITY

WORK ENVIRONMENT ACTIONS

SICK LEAVE

EXTERNAL ENVIRONMENT

DECLARATION BY THE BOARD OF DIRECTORS AND CEO

Bømlo, April 29, 2021

CONSOLIDATED STATEMENT OF PROFIT AND LOSS

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONSOLIDATED STATEMENT OF BALANCE SHEET

CONSOLIDATED STATEMENT OF BALANCE SHEET

Bømlo, April 29, 2021

CONSOLIDATED STATEMENT OF CASH FLOW

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

NOTES TO THE CONSOLIDATED ACCOUNTS

Note 1

Overview of Group relations:

Joint Ventures:

Note 2 - Accounting principles

2.1 Main principles

2.2 Principles of consolidation

a) Subsidiaries

b) Joint ventures

c) Non-controlling interests

2.3 Segment Information

Eidesvik Offshore Annual Report 2020