Eidesvik Offshore ASA

Report for Q4 2023

REV

Vestvikvegen 1, 5443 Bømlo, Norway

Message from the CEO

I am pleased to report a solid financial quarter and the conclusion of a very good year for Eidesvik. In Q4, our revenues reached NOK 193.7 million, with EBITDA ending at NOK 74.6 million. This represents a substantial improvement from Q4, 2022 (adjusted for gain on sale).

We continue to deliver strong operational results, with a fleet utilization rate of 96% in Q4. Unfortunately, we experienced two Lost Time Incident (LTI) during the quarter, bringing the total number of LTIs for 2023 to three. This is far from our target of zero LTIs and not acceptable. The safety of our employees cannot be compromised, and we are committed to addressing this issue rigorously.

In Q4 2023, we took advantage of increased interest in Eidesvik from several financial institutions, and successfully refinanced the wholly-owned fleet in the company at substantial better terms. We look forward to an exciting and constructive collaboration with Sparebanken Vest as a partner.

We hold a strong sense of optimism for the future. Simultaneously we also recognize the importance of addressing ongoing challenges. Supply chain disruptions continue, and we are taking proactive measures such as meticulous, long-term planning for class dockings, and close monitoring of our suppliers. Additionally, as the competition for seafarers intensifies, attracting and retaining competent personnel is a priority that we have high on our agenda.

The long-term market outlook is positive across all our operational segments. With strong market dynamics come new opportunities for the company. A prime illustration of this is our recently unveiled collaboration with Agalas on a new Construction Support Vessel. The investment perfectly aligns with our strategy of offering sustainable shipping solutions and creating long-term partnerships with our clients. Moreover, the timing for this vessel is excellent, coinciding with the rising demand for increased vessel capacity in both the oil & gas sector and the offshore wind industry.

As the energy transition unfolds, we encounter challenges stemming from new reporting requirements and heightened expectations for emission reductions. Nonetheless, our attention remains steadfastly fixed on the opportunities that this transition presents. This commitment is underscored by our recent investment, which not only expands our presence in energy transition markets but also delivers substantial reductions in emissions.

I want to express my gratitude to all our employees for their hard work and dedication. Together, we will navigate our company towards continued success. Steady as she goes!

Highlights

Eidesvik Offshore ASA and its subsidiaries ("Eidesvik", the "Group" or the "Company") delivered a solid quarter with 19% revenue increase from NOK 164.2 million to NOK 193.7 million and 19% improvement in EBITDA margin compared to Q4 2022 (2022 figures adjusted for sales gain). The Group's current NIBD/EBITDA (adjusted, last twelve months) is 1.4 (excluding IFRS 16).

Eidesvik refinanced its long-term bank facility in the quarter, securing overall substantially better terms aligning third party financing closer with the Company's and shareholders' interest.

PSV Viking Princess' contract with Wintershall DEA was extended in the quarter extending the firm period for the vessel till January 2025.

Key Financials

(NOK 1 000)	2023	2022	2023	2022
	1.10 - 31.12 1.10 - 31.12		1.1 - 31.12	1.1 - 31.12
Total operating income	193 726	433 903	772 359	918 547
EBITDA	74 568	322 734	336 218	494 213
EBITDA margin	38 %	74 %	44 %	54 %

	31.12.2023	31.12.2022
Equity	1 619 336	928 047
Equity ratio	60 %	40 %
Cash end equivalents	498 825	655 630
Net interest-bearing debt*	376 952	541 663

*Including IFRS 16.

Operational update

HSEQ

The safety of employees and operations constitute the foundation of all activities in Eidesvik. The Group unfortunately had two lost time incidents (LTI) in Q4 2023 and three LTI's in total for the year. Reported Total Recordable Case Frequency for 2023 was 1.47*. The recordable incidents were the three LTI's. Eidesvik's goal is zero LTI and three LTI's are not acceptable. The Company focuses on identifying the root causes of the incidents so that our processes can be further improved to avoid occurrences in the future.

The number of first aid accidents for 2023 decreased compared to 2022, and Eidesvik is continuing the focus with an aim to achieve further decrease in 2024.

* The number of Total Reportable Cases per million Exposure Hours worked during the period (excluding first aid).

Operations

The overall utilisation for the fleet in Q4 2023 was 96% (96% in Q4 2022).

The supply segment had a utilisation of 100% in Q4 2023 (97%).

For the subsea & offshore wind vessels, the utilisation was 90% (95%).

All vessels are on long-term contracts.

Number of owned vessels (100% or partially) in the quarter was ten (thirteen, whereof four in layup per Q4 2022).

Three vessels are under management.

Financial summary

All financial numbers are in NOK unless stated otherwise.

Revenue for Q4 2023 was NOK 193.7 million compared to 433.9 million in Q4 2022, with an EBITDA of NOK 74.6 million compared to 322.7 million in Q4 2022. Q4 2022 includes a sales gain from sale of vessel of 269,7 million. Adjusted for sales gains revenue was up NOK 29.5 million and EBITDA up NOK 21.6 million quarter on quarter. Revenue and EBITDA 2023 was NOK 772.4 million and NOK 336.2 million (918.5 million and 494.2 million).

In the supply segment Q4 revenue increased from NOK 81.5 million to 108.7 million, an increase of more than 33% due to improved rates and increased utilisation. In subsea & offshore wind Q4 revenue was NOK 89.7 million vs 86.2 million (2022

adjusted for sales gain). Revenue in the segment was affected negatively by reduced utilisation due to a technical issue on a vessel.

Operating expenses for the quarter were NOK 119.2 million compared to 111.2 million in Q4 2022 and 436.1 million FY2023 (424.3 million). Personnel expenses in the quarter increased due to salary adjustment, cost related to onshore head count reduction and crew cost for an additional vessel for December compared to Q4, 2022.

Q4 depreciation was NOK 47.6 million (40.5 million). Depreciation in 2023 was NOK 160.0 million (142.9 million). Increased depreciation is mainly driven by reversal of previous impairment and the addition of Viking Reach in Q1 2023. In Q4 the Company reversed NOK 76.9 million in previous impairment (0). For the year net reversal of impairment was NOK 409.1 million against 209.2 for 2022. Operating result before other income and expenses for Q4 was NOK 103.9 million (282.2 million). Full year operating profit was NOK 585.3 million (560.5 million).

Joint ventures had a gain of NOK 11.0 million for the quarter (-3.1 million) and a loss of NOK -4.4 million (-9.1 million) for the year. The gain in the quarter is due to reversal of previous impairment on the vessel Seven Viking. Class renewal in Q1, an unscheduled repair in Q3, increased interest rates and depreciation affected the results for the year.

Net financial income and expenses for Q4 was NOK -11.4 million (75.2 million). Q4 2022 had a currency gain related to repayment of USD debt. Net financial income and expenses was NOK -44.0 million (-144.6 million) for the full year. 2022 was affected by material disagio due to substantial debt in USD. Interest expenses are reduced due to reduction in debt in connection with the sale of Viking Neptun and refinancing of the Group. In relation to the refinancing of the long-term bank facility in the quarter amortisation fee of NOK 5.0 million for the refinancing in Q1 2023 was expensed in Q4 2023.

Profit after tax for Q4 was NOK 103.5 million (354.4 million). Profit for the year was 536.9 million (406.7 million).

Balance sheet and liquidity Q4 2023

Total current assets per December 31, 2023, were NOK 788.4 million (910.3 million per December 31, 2022), whereof cash balance was NOK 498.8 million (655.6 million). The company prepaid NOK 410 million of debt in connection with the refinancing completed late Q1 2023. NOK 92.0 million of the cash balance is restricted cash or funding restricted for use towards Eidesvik's joint development projects with multiple partners for the development of green ammonia as a fuel source.

Non-current assets were NOK 1,931.6 million on December 31, 2023, compared to 1,348.1 million at year end 2022. The increase is due to the addition of the vessel Viking Reach and reversal of impairment in 2023.

Broker values are used to support the assessment and decisions made by value in use calculations. Average broker value conducted by two independent brokers evaluate the consolidated part of the fleet value free of charter to MNOK 2,196 (MNOK 1,809 at December 31, 2022), which indicates an excess value before tax of MNOK 521 (MNOK 827) compared to the book value of the vessels.

Equity on December 31, 2023, was NOK 1,619.3 million (928.0 million on December 31, 2022), i.e. an equity ratio of 59.5% (39.7%).

Net interest-bearing debt on December 31, 2023, was NOK 377.0 million (541.7 million on December 31, 2022).

Cash flow from operating activities per December 31, 2023, amounted to NOK 252.6 million (215.6 million per December 2022).

Cash flow from investment activities per December 31, 2023, was NOK -172.6 million

(1,171.4 million) mainly due to investment in the entity Eidesvik Reach which owns the vessel Viking Reach, docking capex, reduced with sale of the four seismic vessels and other equipment.

Cash flow from financing activities per December 31, 2023, was NOK -236.8 million (-1,061.8 million). This is a combination of capital raise, prepayment of debt in connection with refinancing in Q1, return of capital to minority shareholders because of the sale of Viking Neptun and refinancing in Q4. The Company refinanced its main bank facility in Q4 2023, adding approximately NOK 70 million of long term debt and securing better overall terms in the facility.

Market and outlook

The fundamentals in oil service and offshore wind are robust. Global E&P offshore spending is increasing, rig activity remains high, record strong subsea EPC (engineering, procurement, and construction) backlogs and utilization levels across several offshore vessel segments are above 90%. The market indicators are positive across all our operating segments.

Supply market

The PSV activity decreased during the last quarter of the year, but the number of vessels in operation increased compared to the same period last year. The positive vessel supply and demand balance are driving rate levels and second-hand vessel values. We foresee a strong PSV market in the coming years.

Subsea & offshore wind market

Subsea entrepreneur companies experience strong order intake, record high backlogs and solid tender activity. We expect demand for subsea vessels to increase in all vessel categories in the coming years, and the global subsea fleet is already experiencing high (above 80%) working utilization levels. The increase in demand for subsea vessels in combination with the lack of capacity in the market will drive the need for newbuilds. We reiterate our positive market outlook for the subsea market in a long-term perspective.

The offshore wind market

The main operators are still impacted by challenges in the supply chain, inflation impact and project delays. The year still came with some important highlights as FIDs (funding investment decisions) reached an all-time high and governmental dedication to escalate production of clean energy remains steadfast. Service operation vessels experience a significant increase in awarded contract years compared to 2022 and our long-term outlook for this segment remains positive.

Subsequent events

Eidesvik signed early February 2024 a three-year extension to its ship management agreement with Dredging, Environmental and Marine Engineering NV ("DEME") for the CSV Viking Neptun, with a two-year option for further extension.

Aker BP ASA has declared an option to extend the contract for the supply vessel Viking Lady. The contract extension runs from February 2025 in direct continuation of the current contract, extending the firm period to February 2026.

Eidesvik announced that it together with Agalas has entered into an agreement to build a new Construction Support Vessel (CSV). The newbuild will be equipped to perform inspection, maintenance and repair (IMR) work.

The vessel will be owned by an entity to be named Eidesvik Agalas AS, where Eidesvik will be the majority owner with 50.1%. The remaining shares will be owned by Northern Norway shipowners Agalas.

Planned delivery for the vessel is early 2026, with an estimated build cost of EUR 81.5 million. In addition, Eidesvik Agalas AS has been granted options for 4 additional vessels.

Financing is a combination of equity from both shareholders and around 70% nonrecourse debt financing from Sparebank 1 Nord-Norge and Eksfin. Eidesvik's share of equity will come from cash on hand.

Upon completion the vessel is scheduled to commence on a 3 to 5-year time charter with Reach Subsea. Eidsvik will have full management of the vessel.

Bømlo, February 20, 2024

Arne Austreid	Annicken G. Kildahl	Lars Eidesvik	John E. Stangeland
Chair of the Board	Board Member	Board Member	Board Member
Kristine E. Skeie	Lauritz Eidesvik	Bjørg Marit Eknes	Petter Lønning
Board Member	Board Member	Board Member	Board Member

Gitte Gard Talmo CEO

STATEMENT OF COMPREHENSIVE INCOME

(Condensed, NOK 1 000)

	2023	2022	2023	2022

Operating Revenue
Freight revenue				634 722
Gain/loss on sale (note 4)				269 723

Total operating revenue				918 547




Total operating expenses				424 335

depreciations				494 213




income and expenses				560 543



Operating result				551 423


Financial expenses				(93 845)
Net agio (disagio)				(116 357)
Net financial items				(144 639)


Taxes				(49)


Attributable to
Equity holders of the parent				346 056

Earnings per share				5,57




Attributable to

Total attributed	102 577	354 569	535 942	406 948

STATEMENT OF FINANCIAL POSITION

(Condensed, NOK 1 000)

	31.12.2023	31.12.2022
ASSETS	(Unaudited)
Non-current assets:
Vessels (note 6, 7)	1 675 133	1 062 780
Other assets (note 7)	18 255	18 547
Financial derivatives	3 129	30 065
Right-of-use asset	77 572	55 489
Other long-term receivables	20 912	39 769
Pension fund	0	417
Shares in Joint Ventures (note 10)	132 905	137 882
Shares (note 10)	3 700	3 118

Total non-current assets	1 931 606	1 348 068
Current assets:
Account receivables, freight income	227 545	141 759
Other short-term receivables	47 779	80 767
Financial derivatives	14 267	32 115
Cash and cash equivalents	498 825	655 630

Total current assets	788 415	910 271

Assets held for sale
Assets held for sale (note 7)	0	80 695
Total assets held for sale	0	80 695

TOTAL ASSETS	2 720 021	2 339 034

EQUITY AND LIABILITIES Equity

Equity attributable to the company's shareholders:
Share capital	3 649	3 108
Premium fund	301 054	177 275
Other paid-in equity	629	629
Other comprehensive income	-1 339	-377
Retained earnings	1 202 489	684 167
Total equity majority shareholders	1 506 483	864 802

Non-controlling interests	112 853	63 245
Total equity	1 619 336	928 047

Non-current liabilities:
Lease liabilities (note 12)	69 571	53 973
Pension liabilities	189	0
Interest-bearing debt (note 12)	678 448	43 169

Total non-current liabilities	748 208	97 142
Current liabilities:
Interest-bearing debt (note 12)	123 457	989 534
Lease liabilities (note 12)	8 000	4 217
Accounts payable	44 100	30 022
Tax payable	5	0
Other short-term liabilities (note 13)	176 915	177 707

Total current liabilities	352 477	1 201 480
Liabilities related to Assets held for sale	0	112 365

Total liabilities, Assets held for sale	0	112 365
Total liabilities	1 100 685	1 410 988

TOTAL EQUITY AND LIABILITIES	2 720 021	2 339 034

STATEMENT OF CHANGES IN EQUITY

(Condensed)

	Share capital	Share premium	Other reservers	Other paid-in equity	Other equity	Total	Minority share	Total equity
Equity as at 01.01.2023	3 108	177 275	-377	629	684 167	864 801	63 245	928 046
Result in the period	0	0	0	0	518 423	518 423	18 481	536 904
Other adjustments	0	0	0	0	-102	-102	0	-102
Actuarial loss	0	0	-962	0	0	-962	0	-962
Private placement *	542	123 779	0	0	0	124 321	0	124 321
Change in non-controlling interests **	0	0	0	0	0	0	31 128	31 128
Equity as at 31.12.2023	3 649	301 054	-1 339	629	1 202 489	1 506 483	112 853	1 619 336
	Share capital	Share premium	Other reservers	Other paid-in equity	Other equity	Total	Minority share	Total equity
Equity as at 01.01.2022	3 108	177 275	-590	629	338 111	518 534	2 565	521 098
Result in the period Actuarial gain/loss	0 0	0 0	0 213	0 0	346 056 0	346 056 213	60 680 0	406 736 213
Equity as at 31.12.2022	3 108	177 275	-377	629	684 168	864 802	63 245	928 047

*In March, the Company announced a successful private placement of 10,833,333 new shares. The transaction and registration of the shares was completed in April 2023.

**Updated minority share related to the new entity established with Reach Subsea ASA, paid dividend from Eidesvik Neptun AS, and purchase of 7.77% of the minority shares in Eidesvik Neptun AS. Eidesvik Neptun AS was closed in November 2023.

STATEMENT OF CASH FLOWS

(Condensed)

	1.1 - 31.12	1.1 - 31.12
	2023	2022
	(Unaudited)
Net cash flow from operations excl. taxes	252 609	215 746
Paid taxes	0	(135)
Cash flow from operating activity	252 609	215 611

Sale of fixed assets	128 806	1 230 746
Sale of other assets	37 314	0
Payment of long-term receivables (instalments and interests)	49 874	44 102
Purchase of fixed operating assets	(388 615)	(103 410)
Cash flow from investment activity	(172 621)	1 171 438

Received net funds from private placement (note 13)	28 321	0
Equity contribution related to establishment of Eidesvik Reach AS	191 617	0
Instalment financial lease	(7 844)	(4 890)
New debt	1 567 615	0
Unwound interest derivatives	45 676	0
Repayment of debt	(1 931 973)	(965 921)
Paid interest	(65 876)	(91 009)
Paid dividend to minority interests	(64 330)	0
Cash flow from finance activity	(236 794)	(1 061 820)

Changes in cash holdings	(156 806)	325 229
Liquid assets at the beginning of the period	655 630	330 401
Liquid assets at the end of the period	498 825	655 630

NOTES TO THE ACCOUNTS

Note 1 - Basis for preparation

These condensed interim consolidated financial statements are prepared in accordance with recognition, measurement and presentation principles consistent with IFRS® Accounting Standards as adopted by the EU ("IFRS") for interim reporting under the International

Accounting Standard ("IAS") 34 Interim Financial reporting. These condensed interim consolidated financial statements are unaudited.

These condensed interim consolidated financial statements are condensed and do not include all of the information and notes required by IFRS for a complete set of consolidated financial statements. These condensed interim consolidated financial statements should be read in conjunction with the annual consolidated financial statement.

The accounting policies adopted in the preparation of the condensed interim consolidated financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for 2022.

The established entity formed together with Reach Subsea ASA, where Eidesvik holds 50.1% of the shares, is consolidated as a subsidiary in the accounts. Eidesvik has the controlling interest and influence in this entity.

The presentation currency of the Group is Norwegian kroner (NOK).

Note 2 – Financial risk

The Group has its income mainly in NOK, EUR and USD, while the material operating expenses are in NOK. Therefore, the Group is exposed to fluctuations in the exchange rate of EUR/NOK and USD/NOK.

The Group has debt in NOK and USD and is exposed to changes in interest rate levels. The Group's interest rate risk is managed through interest cap derivatives. The share of loans with interest cap is 44% for NOK loans and 0% for USD loans per December 31, 2023.

The current liquidity position of the Group is satisfactory.

For further information, reference is made to the 2022 annual accounts Note 3.

Note 3 - Seasonal variations

The interim accounts may be moderately influenced by seasonal variations. Reference is made to the chapter "Market and future outlook" and the "Contract status".

All of the Group's vessels are on long term contracts, which reduces the Group's exposure to seasonal variations going forward.

Note 4 - Special transactions

Other revenues in Q4 2023 are related to reversal of previous write-down of paid installments on receivables from Oceanic Seismic Vessels AS. See Note 5 in the Annual Accounts for 2022 for further details.

Note 5 – Estimates

No changes in estimates materially influencing the interim results or balance have occurred.

Note 6 – Impairment assessment

Impairment tests are performed on individual cash generating units (vessels) when indications of impairment or reversal of previous impairments are identified. Due to observed indicators,

such as P/B below 1, improved market conditions and change in market interest rates, the vessels' book values have been tested for impairment and reversal of previous impairments per December 31, 2023.

Based on these tests, Eidesvik has recognized a reversal of impairment of NOK 76.9 million for two PSVs in Q4 2023. In addition, Eidesvik recognized a reversal of impairment of NOK 28.9 million for the JV vessel Seven Viking. The reversals in Q4 2023 are based on extension of contract and the continued improved market conditions for the segments.

The Group monitors the presence of indicators for impairment and reversal of previous impairment 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. For the assessment of value in use, expected future cash flows are used, discounted to net present value using a discount rate before 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 average WACC used in the calculations per December 31, 2023, is 10.4%. 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. 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 Group's investors. Debt costs are based on the risk-free interest rate, plus a premium equivalent to the difference between risk-free rate and market rates. The beta factors are evaluated quarterly when deemed necessary, and otherwise at least annually, on the basis of publicly available market data for identified comparable companies and the main index on the Oslo Stock Exchange.

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 2023 are based on and reconciled against the financial forecasts which the Group uses for internal planning purposes. Important elements in estimated cash flows are the contract situation (order backlog), the utilisation rate, ordinary operating expenses, periodic maintenance (docking), charter rates, the long-term inflation rate, and exchange rates.

CLIMATE-RELATED MATTERS

The Group constantly monitors the latest regulatory changes in relation to climate-related matters.

The Group has already invested in hybrid battery solutions for the majority of its fleet. For further green fuels and technologies to reduce CO2 emission for the fleet the Group continues to investigate this together with our customers, suppliers and also follow up on possibilities for public funding. Forecast for the vessels include green investments to the extent relevant and are therefore included in assessment of impairment and reversal of impairment. The investments done by the Group so far with focus on reduction in CO2 has historically contributed to securing long term contracts for the vessels in particular in periods where there has been excess capacity in the market. Higher fuel price due to CO2 levels or the cost of green fuels will for the most part be forwarded to the customer, hence there is limited impact in the Group's OPEX short term.

For the Group's long term sustainability goals of 50% reduction in CO2 in 2030, and climate neutral in 2050 to be met, both newbuild programs and new technology have to be implemented and yield appropriate returns. Long term investments are evaluated on this basis.

In the current market, with the existing fleet in the industry, current new build plans and commercial maturity of new emission technology there is no impact on residual values or useful life of the Group's existing vessels.

All the Group's vessels comply with current environmental requirements.

For further information about the tests and other estimates, reference is made to the 2022 annual accounts Note 12.

Note 7 - Fixed assets

			Operating	Total other		Periodic
(NOK thousands)	Property	Port facilities	equipment	fixed assets	Vessels	maintenance	Total vessels
Acquisition cost
January 1, 2023	37 414	3 594	40 598	81 605	4 647 450	354 548	5 001 998
Addition	0	0	0	0	348 704	52 303	401 007
Disposal	0	0	-101	-101	-1 186 518	-61 500	-1 248 018
December 31, 2023	37 414	3 594	40 497	81 505	3 809 636	345 351	4 154 987
Accumulated depreciation and impairments
January 1, 2023	19 804	3 494	39 760	63 059	3 567 818	290 704	3 858 522
Depreciation in the year	180	0	112	292	110 985	48 969	159 953
Impairment / reversal impairment (-) for the year	0	0	0	0	-409 062	0	-409 062
Disposals	0	0	-101	-101	-1 068 067	-61 493	-1 129 560
December 31, 2023	19 985	3 494	39 772	63 251	2 201 673	278 180	2 479 853
Book value	17 429	100	725	18 255	1 607 963	67 171	1 675 133

			Operating	Total other		Periodic
(NOK thousands)	Property	Port facilities	equipment	fixed assets	Vessels	maintenance	Total vessels
Acquisition cost
1 January 2022	37 414	3 594	42 559	83 567	5 890 541	359 633	6 250 174
Addition	0	0	372	372	45 266	56 183	101 448
Disposal	0	0	-2 700	-2 700	-1 288 357	-61 268	-1 349 625
December 31, 2022	37 414	3 594	40 231	81 239	4 647 450	354 548	5 001 998
Accumulated depreciation and impairments
1 January 2022	19 624	3 494	39 926	63 044	4 034 132	285 076	4 319 208
Depreciation in the year	180	0	93	273	87 156	49 978	137 134
Impairment for the year	0	0	0	0	16 053	0	16 053
Reversal of previous impairment for the year	0	0	0	0	-225 290	0	-225 290
Disposals	0	0	-625	-625	-344 232	-44 350	-388 582
Translation differences
December 31, 2022	19 804	3 494	39 393	62 692	3 567 819	290 704	3 858 522
Book value	17 610	100	837	18 547	1 079 631	63 844	1 143 474

Eidesvik acquired the vessel Viking Reach in Q1 2023 in the established entity formed together with Reach Subsea ASA.

All four seismic vessels are sold. Viking Vanquish was delivered in Q1 2023, Viking Vision in Q2 2023, and Veritas Viking and Vantage in Q3 2023.

In determining whether the decisions of sale of the seismic vessels were assessed as discontinued operations or assets held for sale, the Group has concluded that the seismic operations were not a major line of business. The assessment made was based on the fact that the seismic operation's representative share of the Group's total revenue was not viewed as significant (4% for 2022). Consistently discontinued operations were not applicable, and the vessels were classified as assets held for sale in accordance with IFRS 5.

Depreciations of right-of-use assets are not included in the table above.

Note 8 - Long-term debt

On December 13, 2023, Eidesvik announced that it had agreed on a term sheet with Sparebanken Vest to replace the Company's existing term loan facility for its wholly owned fleet of 8 vessels. The transaction was completed on December 20, 2023, and the new improved terms for the financing became effective. The new debt of NOK 677 million will mature on December 20, 2027.

The new loan facility replaced the old facility, and hence the rest of the amortization fee for the refinancing in Q1 2023, NOK 5.0 million, was expensed in Q4 2023.

Summary of the refinancing:

Amortization: 7-years profile
Financial covenants:
- o Minimum free liquidity the lower of NOK 80 million and 10% total interest-bearing debt.
- o Positive working capital (current assets less current liabilities, including 6 months of instalments and excluding other current portion of long term debt).
- o Value adjusted equity ratio of minimum 40%.

EIDESVIK REACH AS

Eidesvik Reach AS, where Eidesvik owns a controlling interest; and which owns the vessel Viking Reach drew a long-term USD loan in connection with the acquisition of the vessel. This loan and the entity are isolated from the group loan facility.

Summary of the financing:

Maturity: March 15, 2028
Amortization: 6-years profile
Financial covenants:
- o Minimum free liquidity of NOK 10 million.
- o Positive working capital (current assets less current liabilities, excluding instalments and current portion of long term debt).
- o Minimum book equity of NOK 160 million.
- o Equity ratio of 35%.

Note 9 - Operating Segments

Time Charter revenue is based on contracts where the Group delivers a vessel including crew, to a client. The charterer determines, within the contractual limits, how the vessel is to be utilized. A Time Charter contract consists of a Bareboat component and a service component. The Bareboat period starts from the time the vessel is made available to the customer and expires on the agreed return date. The Bareboat component will normally be within the range 20-80% of the total contract value. The Bareboat component is within the scope of IFRS 16. Both the service and the Bareboat are recognized as revenue over the lease period on a straightline basis. There is no Time Charter revenue when the vessels are off-hire.

Operation segment	Supply		Subsea/Wind		Seismic		Other		Total
									1.10- 31.12 2023 1.10- 31.12 2022 1.10- 31.12 2023 1.10- 31.12 2022 1.10- 31.12 2023 1.10- 31.12 2022 1.10- 31.12 2023 1.10- 31.12 2022 1.10- 31.12 2023 1.10- 31.12 2022

Segment result
Operating income Bareboat income	68 231 40 421	56 364 25 125	36 906 38 326	37 054 35 312	0 0	0 2 753	9 841 0	7 571 0	114 977 78 748	100 989 63 190
Operating income share from JV*	0	0	10 726	9 929	0	0	0	0	10 726	9 929
Bareboat income from JV*	0	0	3 782	3 945	0	0	0	0	3 782	3 945
Gain on sale	0	0	0	269 723	0	0	0	0	0	269 723
Total operating income	108 652	81 489	89 739	355 963	0	2 753	9 841	7 571	208 232	447 776

Operating expenses	61 599	58 687	39 030	29 430	0	4 025	18 527	19 025	119 156	111 167
Operating expenses share from JV*	0	0	10 838	10 568	0	0	0	0	10 838	10 568
Total operating expenses	61 599	58 687	49 868	39 998	0	4 025	18 527	19 025	129 994	121 735

Depreciations	29 752	24 761	17 836	11 202	0	3 019	-26	1 544	47 561	40 526
Depreciations share from JV*	0	0	5 432	4 732	0	0	0	0	5 432	4 732
Impairment on assets / reversal impairment	-76 909	0	0	0	0	0	0	0	-76 909	0
Impairment on assets /reversal impairment share from JV*	0	0	-14 413	0	0	0	0	0	-14 413	0
Total depreciations/writedown on assets	-47 157	24 761	8 855	15 934	0	3 019	-26	1 544	-38 329	45 258
Operating profit incl. share from JV*	94 210	-1 959	31 017	300 031	0	-4 291	-8 660	-12 998	116 568	280 783

Net finance and taxes from JV*	0	0	-2 176	-2 171	0	0	0	0	-2 176	-2 171
Writedown JV	0	0	0	0	0	0	0	0	0	0

Profit from associated companies	0	0	0	0	0	0	567	523	567	523
Profit from other JV	0	0	0	0	0	0	0	0	0	0
Operating profit	94 210	-1 959	28 841	297 860	0	-4 291	-8 093	-12 475	114 957	279 135
Number of vessels at end of period (incl. JV)	6	6	4	3	0	4			10	13


Operation segment	Supply		Subsea/Wind		Seismic		Other		Total 1.1.- 31.12 2023 1.1.- 31.12 2022 1.1.- 31.12 2023 1.1.- 31.12 2022 1.1.- 31.12 2023 1.1.- 31.12 2022 1.1.- 31.12 2023 1.1.- 31.12 2022 1.1.- 31.12 2023 1.1.- 31.12 2022

Segment result

Operating income	224 821	200 642	149 568	128 123	0	0	28 567	24 083	402 956	352 849
Bareboat income	165 023	103 215	133 931	164 554	11 257	28 206	0	0	310 211	295 975
Operating income share from JV*	0	0	37 229	38 250	0	0	0	0	37 229	38 250
Bareboat income from JV*	0	0	13 941	15 645	0	0	0	0	13 941	15 645
Gain on sale	0	0	0	269 723	21 574	0	37 618	0	59 192	269 723
Total operating income	389 844	303 857	334 669	616 296	32 831	28 206	66 185	24 083	823 529	972 442

Operating expenses	230 635	210 783	136 287	141 448	7 562	18 978	61 656	53 123	436 140	424 332
Operating expenses share from JV*	0	0	39 796	37 783	0	0	0	0	39 796	37 783
Total operating expenses	230 635	210 783	176 083	179 231	7 562	18 978	61 656	53 123	475 936	462 115

Depreciations	95 851	84 192	58 658	38 916	0	14 026	5 444	5 773	159 953	142 907
Depreciations share from JV*	0	0	21 837	18 925	0	0	0	0	21 837	18 925
Impairment on assets / reversal impairment Impairment on assets /reversal impairment share from JV*	-317 100 0	-188 726 0	-54 207 -14 413	-36 564 0	-37 755 0	16 053 0	0 0	0 0	-409 062 -14 413	-209 237 0
Total depreciations/writedown on assets	-221 249	-104 534	11 876	21 277	-37 755	30 079	5 444	5 773	-241 684	-47 405

Operating result incl. share from JV*	380 458	197 608	146 710	415 788	63 024	-20 851	-915	-34 813	589 277	557 732
Net finance and taxes from JV*	0	0	-8 926	-6 831	0	0	0	0	-8 926	-6 831
Writedown JV	0	0	0	0	0	0	0	0	0	0
	0		0		0		0
Result from associated companies	0	0	0	0	0	0	567	523	567	523
Result from other JV	0	0	0	0	0	0	0	0	0	0
Operating result	380 458	197 608	137 784	408 958	63 024	-20 851	-348	-34 290	580 918	551 423

*The JV's income, expenses and depreciation are included in the table with a share corresponding to the Group's ownership share in the JVs.

Note 10 - Joint venture

Summarized financial information per December 31, 2023, of the individual joint venture companies:

Company	Assets	Liability	Equity	Revenues	Profit	Ownership	Book value	Result portion
Eidesvik Seven AS	520 866	277 449	243 417	27 854	539	50 %	121 708	270
Eidesvik Seven Chartering AS	81 461	59 072	22 388	73 325	-10 493	50 %	11 194	-5 247
Profit from Joint Ventures							132 905	(4 977)

Summarized financial information per December 31, 2022 of the individual joint ventures companies:

Company	Assets	Liability	Equity	Revenues	Profit	Ownership	Book value	Result
								portion
Eidesvik Seven AS	504 647	261 770	242 877	31 290	-21 437	50 %	121 439	-10 718
Eidesvik Seven Chartering AS	54 726	21 839	32 886	107 790	2 272	50 %	16 443	1 075
Profit from Joint Ventures							137 882	(9 644)

Summarized financial information per December 31, 2023, of the individual associated companies:

Company	Ownership/ voting share	Book value 31.12.2023	Result portion
Bleivik Eiendom AS	23 %	3 685	567
Eidesvik Ghana Ltd.	49 %	15	0
Profit from associated companies		3 700	567

Summarized financial information per December 31, 2022 of the individual associated companies:

Company	Ownership/ voting share	Book value 31.12.2022
Bleivik Eiendom AS	23 %	2 595
Eidesvik Ghana Ltd.	49 %	0
Profit from associated companies		2 595

Note 11 - Financial items

	1.10 - 31.12 2023	1.10 - 31.12 2022	1.1 - 31.12 2023	1.1 - 31.12 2022
Financial income	11 141	4 828	19 657	14 421
Impairment long-term receivables	1 106	0	10 447	7 247
Other interest and financial expenses	(23 823)	(25 684)	(82 854)	(97 308)
Interest cost - lease liabilities	(436)	(693)	(2 905)	(3 783)
Change in market value on interest instruments	(2 168)	(3 940)	10 860	51 142
Realized agio on foreign exchange contracts	870	1 129	3 593	2 403
Realized agio - others	(6)	(86 984)	(9 255)	(96 814)
Unrealized agio - on foreign exchange contracts	(1 175)	979	1 637	(363)
Unrealized agio - others	3 073	185 585	4 795	(21 584)
Net financial items	(11 419)	75 221	(44 025)	(144 639)

In relation with the refinancing of the long-term bank facility in the quarter, amortisation fee of NOK 5.0 million for the refinancing in Q1 2023 was expensed in Q4 2023.

The debt in USD was significantly reduced in Q4 2022 after the delivery of Viking Neptun in the same quarter. This was the main reason for the realized disagio of MNOK 86.9. The delivery was also the main reason for the unrealized agio of MNOK 185.6 in Q4 2022.

Note 12 - Net interest-bearing debt

	31.12.2023	31.12.2022
Current interest-bearing debt	123 457	989 534
Accrued interests	(3 700)	(5 965)
Liabilities related to Assets held for sale	0	112 365
1st year installment on long-term interest-bearing debt	119 757	1 095 934
Current lease liabilities (IFRS 16)	8 000	4 217
Current interest-bearing debt	127 757	1 100 152

Non-current interest-bearing debt	678 448	43 169
Non-current lease liabilities (IFRS 16)	69 571	53 973
Non-current interest-bearing debt	748 019	97 142


Total interest-bearing debt	875 777	1 197 294

Cash and cash equivalents	(498 825)	(655 630)
Net interest-bearing debt	376 952	541 663

Note 13 - Related-party transactions

In relation with the private placement and the acquisition of Viking Reach in Q1 2023, Eidesvik Invest AS gave Eidesvik a short-term loan of NOK 96.0 million in Q1 2023. NOK 77.8 million of the loan was used as a contribution in kind in connection with the private placement (Eidesvik Invest AS' share of the private placement). Eidesvik received the funds from the private placement in April 2023, and the loan from Eidesvik Invest AS was repaid in full.

Eidesvik Invest received an underwriting commission of NOK 1.9 million for underwriting NOK 96.0 million of the private placement.

Except for the ordinary operating related transactions with the joint ventures Eidesvik Seven AS and Eidesvik Seven Chartering AS, and the related companies Eidesvik Invest AS, Langevåg Senter AS, Bømlo Skipsservice AS, Evik AS and Bømmelfjord AS, no other material relatedparty transactions have been conducted. Reference is made to the 2022 annual accounts Note 24.

Note 14 - Shareholders

No major changes in the shareholder positions have occurred in the period.

20 largest shareholders per December 31, 2023:

Name	Stake	Country
EIDESVIK INVEST AS	59,86 %	NORWAY
JAKOB HATTELAND HOLDING AS	4,74 %	NORWAY
HELGØ FORVALTNING	2,33 %	NORWAY
VINGTOR INVEST AS	2,31 %	NORWAY
STANGELAND HOLDING AS	1,78 %	NORWAY
BERGTOR INVESTERING AS	1,72 %	NORWAY
CAIANO INVEST AS	1,68 %	NORWAY
DUNVOLD INVEST AS	1,51 %	NORWAY
SKANDINAVISKA ENSKILDA BANKEN AB	0,97 %	SWEDEN
HELGØ INVEST AS	0,84 %	NORWAY
SILBERG, JOHNNY	0,82 %	NORWAY
M EIDESVIK OG SØNNER AS	0,80 %	NORWAY
HELLAND AS	0,76 %	NORWAY
MYKLEBUST, EINAR	0,59 %	NORWAY
OLAVS HOLDING AS	0,55 %	NORWAY
NORDNET LIVSFORSIKRING AS	0,49 %	NORWAY
LØVLID, ARNE	0,37 %	NORWAY
LGJ INVEST AS	0,34 %	NORWAY
SMEDASUNDET AS	0,34 %	NORWAY
HANNESTAD, KARL CHRISTIAN	0,32 %	NORWAY
Total	83,12 %
Total other	16,88 %
Total shares	100,00 %

Note 15 - Subsequent events

The vessel will be owned by an entity to be named Eidesvik Agalas AS, where Eidesvik will be the majority owner with 50.1%. The remaining shares will be owned by Northern Norway shipowners Agalas.

Planned delivery for the vessel is early 2026, with an estimated build cost of EUR 81.5 million. In addition, Eidesvik Agalas AS has been granted options for 4 additional vessels.

Financing is a combination of equity from both shareholders and around 70% non-recourse debt financing from Sparebank 1 Nord-Norge and Eksfin. Eidesvik's share of equity will come from cash on hand.

Upon completion the vessel is scheduled to commence on a 3 to 5-year time charter with Reach Subsea. Eidsvik will have full management of the vessel.

No other events have occurred after the balance sheet date with significant impact on the interim financial statements for Q4 2023.

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.
Utilisation: Actual days with revenue divided by total actual available days.
Equity Ratio: Equity divided by total assets.
Net interest bearing debt ("NIBD"): Interest bearing debt less cash and cash equivalents. The use of term "net debt" does not necessarily mean cash included in the calculation is available to settle debt if included in the term. Reference is made to Note 12.
EBITDA: Operating result (earnings) before depreciation, impairment, amortization, result from join ventures and associated companies, 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 amortized costs related to investments. EBITDA is also important in evaluating performance relative to competitors. See table below for matching to the accounts.
Adjusted EBITDA: EBITDA adjusted for Gain/loss on sale and Other income.
EBITDA margin: EBITDA divided on Total operating revenue.
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.

	2023	2022
	1.10 - 31.12	1.10 - 31.12
Freight revenue	190 635	160 586
Gain/loss on sale	0	269 723
Other income	3 090	3 594
Total operating revenue	193 726	433 903

Total operating expenses	(119 157)	(111 169)

EBITDA	74 568	322 734
EBITDA margin	38 %	74 %

APPENDIX 2 - DEBT MATURITY PROFILE DECEMBER 31, 2023:

APPENDIX 3 – CONTRACT STATUS AND COVERAGE DECEMBER 31, 2023:

CONDENSED STATEMENT OF COMPREHENSIVE INCOME LAST 5 QUARTERS

Consolidated	2023	2023	2023	2023	2022
(NOK 1 000) Operating Revenue:	Q4	Q3	Q2	Q1	Q4
Freight revenue	190 635	195 588	184 420	128 815	160 586
Gain/loss on sale	0	5 207	15 487	880	269 723
Other income	3 090	3 851	40 586	3 798	3 594

Total operating revenue	193 726	204 646	240 494	133 493	433 903

Operating Expenses:
Personell expenses	92 523	74 069	81 507	69 884	83 607
Other operating expenses	26 634	25 397	30 286	35 840	27 562

Total operating expenses	119 157	99 467	111 793	105 723	111 169
Operating result before depreciations	74 568	105 179	128 701	27 770	322 734
	38 %	51 %	54 %	21 %	74 %
Ordinary depreciation	47 563	39 869	39 812	32 710	40 526
Writedown on assets	(76 910)	0	(332 153)	0	0

Operating result before other income and
expenses	103 915	65 310	421 041	(4 940)	282 208
Result from Joint Ventures and associated	11 042	(3 592)	(2 923)	(8 937)	(3 073)
companies
Operating result	114 957	61 718	418 118	(13 876)	279 135

Financial Items:
Financial income	8 974	3 214	8 993	9 336	888
Financial expenses	(23 154)	(16 770)	(19 119)	(16 268)	(26 376)
Net agio (disagio)	2 762	2 816	(524)	(4 284)	100 709
Net financial items	(11 419)	(10 741)	(10 649)	(11 216)	75 221

Pre-tax result	103 538	50 978	407 469	(25 092)	354 356

Taxes	0	0	11	0	0
Result	103 538	50 978	407 480	(25 092)	354 356


Equity holders of the parent	95 629	42 357	404 911	(24 473)	264 318
Non-controlling interests	7 910	8 621	2 569	(619)	90 038

Earnings per share	1,31	0,58	5,55	(0,39)	4,25
Statement of comprehensive income

Actuarial gain/ loss	(962)	0	0	0	213
Comprehensive income
	102 577	50 978	407 480	(25 092)	354 569
Attributable to
Controlling interests	94 667	42 357	404 911	(24 473)	264 530
Non-controlling interests	7 910	8 621	2 569	(619)	90 038

Total attributed	102 577	50 978	407 480	(25 092)	354 569

CONDENSED STATEMENT OF FINANCIAL POSITION LAST 5 QUARTERS

Consolidated (NOK 1 000)	2023 Q4	2023 Q3	2023 Q2	2023 Q1	2022 Q4
ASSETS
Non-current assets:
Vessels	1 675 133	1 637 442	1 694 996	1 364 275	1 062 780
Other assets	18 255	18 390	18 440	18 494	18 547
Financial derivatives	3 129	7 617	8 876	8 099	30 065
Right-of-use asset	77 572	80 493	54 601	56 147	55 489
Net investment in lease	0	4 216	0	0	0
Other long-term receivables	20 912	25 196	32 049	34 511	39 769
Pension fund	0	417	417	417	417
Shares in Joint Venture	132 905	122 430	126 022	128 945	137 882
Shares	3 700	3 133	3 118	3 118	3 118
Total non-current assets	1 931 606	1 899 334	1 938 520	1 614 005	1 348 068

Current assets:
Account receivables,	227 545	186 239	203 147	170 724	141 759
Other short-term receivables Financial derivatives	47 779	53 072	57 682	111 045	80 744
Cash and cash equivalents	14 267	15 730	13 314	9 268	32 115
	498 825	386 456	339 375	332 291	655 653
Total current assets	788 415	641 497	613 519	623 328	910 271
Assets held for sale:
Assets held for sale	0	0	71 293	48 949	80 695
Total assets held for sale	0	0	71 293	48 949	80 695

TOTAL ASSETS	2 720 021	2 540 830	2 623 332	2 286 282	2 339 034
EQUITY AND LIABILITIES
Equity attributable to the company's
shareholders:
Share capital	3 649	3 649	3 649	3 108	3 108
Premium fund	301 054	301 054	301 054	177 275	177 275
Not paid or registered share capital increase	0	0	0	124 000	0
Other paid-in equity	629	629	629	629	629
Other comprehensive income	(1 339)	(377)	(377)	(377)	(377)
Retained earnings	1 202 489	1 106 823	1 064 466	659 555	684 167
Total equity majority shareholders	1 506 483	1 411 778	1 369 422	964 190	864 802

Non-controlling interests	112 853	106 548	98 804	158 104	63 245
Total equity	1 619 336	1 518 326	1 468 226	1 122 294	928 047
LIABILITIES:
Non-current liabilities:
Lease liabilities	69 571	71 511	52 878	54 130	53 973
Other long-term liabilities	0	4 790	0	0	0
Interest-bearing debt	678 448	627 359	657 030	691 127	43 169
Total non-current liabilities	748 208	703 660	709 909	745 257	97 142
Current liabilities:
Interest-bearing debt	123 457	111 778	111 508	90 143	989 534
Financial derivatives	0	0	633	731	0
Lease liabilities	8 000	8 019	5 011	5 011	4 217
Accounts payable	44 100	25 821	40 108	35 732	30 022
Tax payable	5	5	0	0	0
Other short-term liabilities	176 915	173 221	213 041	192 820	177 707
Total current liabilities	352 477	318 843	370 301	324 437	1 201 480

Liabilities related to Assets held for sale	0	0	74 897	94 295	112 365
Total liabilities, Assets held for sale	0	0	74 897	94 295	112 365

Total liabilities	1 100 685	1 022 504	1 155 106	1 163 988	1 410 988
TOTAL EQUITY AND LIABILITIES	2 720 021	2 540 830	2 623 332	2 286 282	2 339 034

Financial Calendar 2023/2024

21 May 2024	1st Quarter 2024
30 May 2024	Annual General Meeting
23 April 2024	Annual report 2023
27 Aug 2024	Half-Yearly Report 2024
19 Nov 2024	3rd Quarter 2024

Company address	Vestvikvegen 1 NO-5443 Bømlo, Norway
Telephone	+47 53 44 80 00
Webpage	www.eidesvik.no
Email	[email protected]

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Eidesvik Offshore — Earnings Release 2023

3586_rns_2024-02-21_1b1a3245-f7e7-4d3f-a9f5-97c0b7bf2c65.pdf

Eidesvik Offshore ASA

Message from the CEO

Highlights

Key Financials

Operational update

HSEQ

Operations

Financial summary

Balance sheet and liquidity Q4 2023

Market and outlook

Supply market

Subsea & offshore wind market

The offshore wind market

Subsequent events

STATEMENT OF COMPREHENSIVE INCOME

(Condensed, NOK 1 000)

STATEMENT OF FINANCIAL POSITION

(Condensed, NOK 1 000)

STATEMENT OF CHANGES IN EQUITY

(Condensed)

STATEMENT OF CASH FLOWS

(Condensed)

NOTES TO THE ACCOUNTS

Note 1 - Basis for preparation

Note 2 – Financial risk

Note 3 - Seasonal variations

Note 4 - Special transactions

Note 5 – Estimates

Note 6 – Impairment assessment

CLIMATE-RELATED MATTERS

Note 7 - Fixed assets

Note 8 - Long-term debt

EIDESVIK REACH AS

Summary of the financing:

Note 9 - Operating Segments

Note 10 - Joint venture

Note 11 - Financial items

Note 12 - Net interest-bearing debt

Note 13 - Related-party transactions

Note 14 - Shareholders

Note 15 - Subsequent events

APPENDIX 1 – ALTERNATIVE PERFORMANCE MEASURES DEFINITIONS

APPENDIX 2 - DEBT MATURITY PROFILE DECEMBER 31, 2023:

CONDENSED STATEMENT OF COMPREHENSIVE INCOME LAST 5 QUARTERS

CONDENSED STATEMENT OF FINANCIAL POSITION LAST 5 QUARTERS

Financial Calendar 2023/2024

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Eidesvik Offshore Earnings Release 2023