AI assistant
Eidesvik Offshore — Interim / Quarterly Report 2021
Nov 17, 2021
3586_rns_2021-11-17_5ff42ca9-aea1-4f7f-a44b-268a3facd1bf.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
Eidesvik Offshore ASA Report for 3 rd Quarter 2021
Highlights in 3rd Quarter 2021
In 3rd Quarter 2021 Eidesvik Offshore ASA ("Eidesvik" or the "Group") generated a consolidated EBITDA of MNOK 81.5, compared to MNOK 59.8 in 3rd Quarter 2020 (MNOK 55.0 adjusted for one-off effects).
Eidesvik was awarded a contract with Havfram AS ("Havfram") for the CSV "Viking Neptun". The contract will commence early January 2022 with a firm period towards the end of 3rd Quarter 2022. In addition, Havfram has been granted options for further extension.
Eidesvik was awarded a 3-year time charter contract with Aker BP ASA ("Aker BP") for the PSV "Viking Lady". The contract was awarded in direct continuation of the current charter under the companies' frame agreement. The contract will commence in January 2022, and Aker BP was granted options for further extension.
Eidesvik agreed on a term sheet with its financial institutions for refinancing of its debt in August 2021. The final agreements and documentation were in place in September 2021, and the new terms for the Group's financing became effective. Please see the Financing section below for further information.
Subsequent events
Eidesvik and the technology group Wärtsilä signed a landmark cooperation agreement aimed at converting an offshore supply vessel ("OSV") to operate with an ammonia-fuelled combustion engine with required fuel supply and safety system. The "Apollo" project will be the first of its kind ever in the world, and has a provisional completion target of late 2023.
Wintershall Dea declared options to extend the contract for the supply vessel "Viking Princess" from January 2022 in direct continuation of the current contract, extending the firm period to January 2023.
After more than 16 years as CEO and President of Eidesvik, Jan Fredrik Meling will retire from his position on December 31, 2021. The Group's CCO Gitte Gard Talmo was appointed to replace Meling.
Eidesvik entered into a Memorandum of Understanding with Aker BP and Alma, a venture under establishment by Clara Venture Labs (under name change from Prototech AS) to explore opportunities for retrofit installation of Alma's ammonia fuel cell technology on two offshore support vessels, Eidesvik's "Viking Lady" and Aker BP-owned "NS Frayja" (currently under Eidesvik's management).
Results 3rd Quarter 2021
The interim accounts have been prepared in accordance with IAS 34. The interim accounts of 3rd Quarter 2021 and corresponding figures for 2020 have not been audited.
In the 3rd Quarter 2021 Eidesvik had consolidated operating income of MNOK 174.8 (MNOK 142.7 in the corresponding period in 2020). Operating result before depreciations (EBITDA) was MNOK 81.5 (MNOK 59.8, whereof MNOK 4.8 was related to one-off effects). Operating result (EBIT) was MNOK 1.0 (MNOK 11.2). Result from joint ventures and associated companies was MNOK -0.1 (MNOK 4.0). Net financial items were MNOK -35.7 (MNOK 16.9). Result after tax amounted to MNOK -34.7 (MNOK 28.3).
Results per September 30, 2021
The interim accounts have been prepared in accordance with IAS 34. The interim accounts per September 30, 2021, and corresponding figures for 2020 have not been audited.
The Group's consolidated total operating income per September 30, 2021, was MNOK 442.1 (total operating income per September 30, 2020, was MNOK 423.8). Operating result before depreciation (EBITDA) was MNOK 148.4 (MNOK 121.1), and operating result was MNOK -74.4 (MNOK -49.7). Result from joint ventures and associated companies of MNOK -2.8 (MNOK 8.6). Net financial items were MNOK -79.0 (MNOK -56.9).
Result after tax per September 30, 2021, amounted to MNOK -153.4 (MNOK -106.4 per September 30, 2020), whereof MNOK -146.2 (MNOK -80.2) was the result for the shareholders of the parent. This resulted in earnings per share of NOK -2.35 (NOK -1.29).
Balance sheet and liquidity per September 30, 2021
Current assets at September 30, 2021, was MNOK 501.7 (MNOK 904.9 at September 30, 2020), and cash balance was MNOK 283.9 (MNOK 400.1), whereof MNOK 2.1 is restricted cash and MNOK 16.8 is funding restricted to the ammonia project.
Book equity at September 30, 2021, was MNOK 337.1 (MNOK 537.4 at September 30, 2020), i.e. an equity ratio of 13% (17%). The total booked equity per share at September 30, 2021 was NOK 5.42 (NOK 8.65). The corresponding market quote at Oslo Stock Exchange closed at NOK 3.90 (NOK 2.34). This represents a market capitalization of MNOK 242.4 (MNOK 145.4).
Net interest-bearing debt at September 30, 2021, was MNOK 1,737.6 (MNOK 2,154.0 at September 30, 2020). The decrease in net interest–bearing debt is mainly a result of instalments and the effect from USD depreciation against NOK.
Cash flow from operating activities per September 30, 2021, amounted to MNOK 66.1 (MNOK 163.6 per September 30, 2020).
Cash flow from investment activities per September 30, 2021, was MNOK 277.2 (MNOK -34.2 per September 30, 2020).
Cash flow from financing activities per September 30, 2021, of MNOK -488.6 (MNOK -137.6 per September 30, 2020) consisted of payments of interest, deferred installments on secured debt, debt on sold vessel, and prepayment related to the refinancing of the Group.
Variation in the operation of vessels in 2021 compared to 2020 Supply
The supply segment's EBITDA per September 30, 2021, was MNOK 55.6 (MNOK 48.7 in the corresponding period in 2020), an increase of MNOK 6.9. This is mainly a result of decrease in operating expenses.
Subsea
The subsea/offshore wind segment including shares of Joint Venture's EBITDA per September 30, 2021, was MNOK 120.5 (MNOK 100.6 in the corresponding period in 2020), an increase of MNOK 19.9. The main reasons for the increase are that "Viking Neptun" and "Subsea Viking" were on contract during most of the three first Quarters in 2021 (versus "Viking Neptun" only on contract in 2nd and 3rd Quarter 2020, and "Subsea Viking" on standby contract from 2nd Quarter 2020). The consolidated part of the segment had per September 30, 2021, an EBITDA of MNOK 106.1 (MNOK 71.9).
Seismic
The seismic segment's EBITDA per September 30, 2021, was MNOK 5.0 (MNOK 0.9 in the corresponding period in 2020), an increase of MNOK 4.1. The main reason for the increase is related the 130 days bareboat contract for "Veritas Viking" (versus in warm lay up most of the 1st Half of 2020).
Financing
On August 27, 2021, Eidesvik announced that it had agreed on a term sheet ("Term Sheet") with its financial institutions for refinancing of its debt. With a combination of extension of debt maturities and reduced amortization payments, the agreed terms significantly strengthen the Group's financial position. On September 10, 2021, the final agreements and documentation were in place and the new terms for the Group's financing became effective.
The agreed terms provide mechanisms for extension of final maturities of debt facilities from the end of 2022 to the end of 2023, and there will be no final maturities until year end 2023. The extension is subject to Eidesvik meeting certain financial and operational triggers.
Fixed amortization payments have been significantly reduced. On the date of agreeing and signing final documentation, debt repayments of approximately NOK 309 million were made. There will be no further fixed debt amortization in 2021. Scheduled fixed amortization for 2022 is reduced from approximately NOK 320 million to approximately NOK 112 million. For 2023, the fixed amortization is approximately NOK 80 million. No changes to interest margins have been made, and interest will be paid as normal during the period.
In addition to fixed amortization, a cash sweep mechanism has been agreed. The cash sweep will be used for additional debt repayment if cash levels are above agreed thresholds, on a facility-by-facility basis. The new facility cash sweep mechanism replaces the previous corporate cash sweep mechanism. Please see Note 15 for further information.
Market and future outlook
PSV Market
The North Sea PSV market had fewer fixtures compared to the same quarter last year. However, contract durations were longer with an increase in secured vessel days of approximately 40%. This indicates that operators are increasingly willing to commit to more long term contracts and is a positive signal to the market.
The North Sea fleet utilization levels increased compared to the same period last year, with large PSV's (900+ m2 ) securing the highest utilization level ending at above 70%. Rate levels also improved during this quarter with long term fixtures at higher levels. The underlying drivers for PSV activity are positive with a strong oil price and an expected increase in rig activity in the coming years. Our medium to long term outlook for large environmentally friendly PSV's remains optimistic.
Subsea and Offshore Wind Markets
The subsea market remained active this quarter with healthy rate and utilization levels. The major service companies reported significant contract awards and solid backlog growth, and we note an increase in requirements for various subsea tonnage globally.
Subsea project sanctioning is increasing year on year with a strong growth outlook from mid 2023 and onwards. Our fleet availability sets us in a good position to leverage on this growth outlook.
In offshore wind, SPS compliant (Special Purpose Ship class compliant) vessels have been fully booked during the quarter, servicing both the commissioning- and operation and maintenance phases in the offshore windfarms lifecycle. The market continues to build momentum with several site developments announced during the quarter. This is expected to drive vessel demand in a long-term perspective.
Seismic Market
The ocean bottom seismic companies continue to increase their backlog for the next year. We are positive that we will be able to secure new contracts in this segment in H1 2022.
Bømlo, November 17, 2021
| Arne Austreid | Borgny Eidesvik | Lars Eidesvik | John Egil Stangeland |
|---|---|---|---|
| Chairman of the Board | Board Member | Board Member | Board Member |
| Kristine Elisabeth Skeie | Lauritz Eidesvik | Bjørg Marit Eknes | Tore Hettervik |
| Board Member | Board Member | Board Member | Board Member |
Jan Fredrik Meling CEO
Condensed statement of comprehensive income
(NOK 1 000)
| 2021 | 2020 | 2021 | 2020 | |
|---|---|---|---|---|
| 1.7 - 30.9 | 1.7 - 30.9 | 1.1 - 30.9 | 1.1 - 30.9 | |
| Operating Income | ||||
| Freight income | 167 723 | 142 721 | 431 151 | 409 732 |
| Other income (note 4) | 7 095 | 0 | 10 898 | 14 078 |
| Total operating income | 174 818 | 142 721 | 442 050 | 423 810 |
| Operating Expenses | ||||
| Personnel expenses | 63 573 | 55 840 | 201 582 | 209 157 |
| Other operating expenses | 29 749 | 27 120 | 92 091 | 93 575 |
| Total operating expenses | 93 321 | 82 960 | 293 673 | 302 732 |
| Operating result before | ||||
| depreciations | 81 497 | 59 762 | 148 377 | 121 078 |
| Ordinary depreciation | 52 145 | 52 540 | 157 711 | 155 398 |
| Impairment on assets | 28 295 | 0 | 62 195 | 23 941 |
| Operating result before other | ||||
| income and expenses | 1 057 | 7 222 | (71 530) | (58 261) |
| Result from Joint Ventures and associated | (90) | 3 960 | (2 842) | 8 612 |
| companies | ||||
| Operating result | 967 | 11 182 | (74 372) | (49 650) |
| Financial Items (note 11) | ||||
| Financial income | 2 087 | 4 088 | 6 609 | 117 231 |
| Financial expenses | (14 373) | (20 470) | (51 237) | (103 299) |
| Net agio (disagio) | (23 380) | 33 302 | (34 351) | (70 850) |
| Net financial items | (35 666) | 16 921 | (78 980) | (56 919) |
| Pre-tax result | (34 699) | 28 103 | (153 352) | (106 568) |
| Taxes | 0 | 233 | 0 | 164 |
| Result | (34 699) | 28 336 | (153 352) | (106 404) |
| Attributable to | ||||
| Equity holders of the parent | (33 646) | 18 715 | (146 240) | (80 175) |
| Non-controlling interests | (1 053) | 9 621 | (7 112) | (26 229) |
| Earnings per share | (0,54) | 0,30 | (2,35) | (1,29) |
| Profit | (34 699) | 28 336 | (153 352) | (106 404) |
| Currency translation adjustments Joint Ventures | 0 | 0 | 0 | (106 712) |
| Currency translation adjustments Joint Ventures | 0 | 0 | 0 | (106 712) |
|---|---|---|---|---|
| Actuarial gain/ loss | 0 | 0 | 0 | 28 409 |
| Change in value stocks | 0 | (7 896) | 9 900 | 21 033 |
| Comprehensive income | (34 699) | 20 440 | (143 452) | (163 674) |
| Attributable to | ||||
| Equity holders of the parent | (33 646) | 10 819 | (136 340) | (137 445) |
| Non-controlling interests | (1 053) | 9 621 | (7 112) | (26 229) |
| Total attributed | (34 699) | 20 440 | (143 452) | (163 674) |
Condensed statement of financial position
(NOK 1 000)
| TOTAL EQUITY AND LIABILITIES | 2 511 411 | 3 248 579 | 3 097 113 |
|---|---|---|---|
| Total liabilities | 2 174 346 | 2 711 188 | 2 616 594 |
| Total short-term liabilities | 227 540 | 209 337 | 349 168 |
| Other short-term liabilities | 92 419 | 76 076 | 117 813 |
| Accounts payable | 35 005 | 25 171 | 48 061 |
| Financial derivatives Lease liabilities (note 12) |
8 680 3 256 |
21 399 3 256 |
13 442 3 256 |
| Interest-bearing debt (note 12) | 88 180 | 83 435 | 166 596 |
| Short-term liabilities: | |||
| Total long-term liabilities | 1 946 805 | 2 501 851 | 2 267 426 |
| Interest-bearing debt (note 12) | 1 881 605 | 2 415 958 | 2 193 798 |
| Other long-term liabilities | 10 549 | 7 702 | 11 373 |
| Pension liabilities | 236 | 0 | 236 |
| Lease liabilities (note 12) | 52 075 | 55 870 | 54 861 |
| Long-term liabilities: Financial derivatives |
2 341 | 22 321 | 7 158 |
| Total equity | 337 065 | 537 391 | 480 519 |
| Non-controlling interests | (51 030) | -118 509 | (101 145) |
| Total equity majority shareholders | 388 095 | 655 900 | 581 664 |
| Retained earnings | 207 618 | 454 481 | 411 087 |
| Translation differences | 0 | 21 033 | -9 900 |
| Other paid-in equity Other comprehensive income |
629 (535) |
629 -626 |
629 (535) |
| Premium fund | 177 275 | 177 275 | 177 275 |
| Share capital | 3 108 | 3 108 | 3 108 |
| Equity attributable to the company's shareholders: | |||
| Equity | |||
| EQUITY AND LIABILITIES | |||
| TOTAL ASSETS | 2 511 411 | 3 248 579 | 3 097 113 |
| Total current assets | 501 742 | 904 895 | 877 086 |
| C ash and cash equivalents | 283 869 | 400 121 | 429 183 |
| Other short-term receivables Financial derivatives |
43 309 1 411 |
72 141 8 733 |
65 224 25 284 |
| Account receivables, freight income | 173 154 | 139 457 | 101 416 |
| Financial investments | 0 | 284 442 | 255 978 |
| Current assets: | |||
| Total fixed assets | 2 009 668 | 2 343 684 | 2 220 027 |
| Shares (note 9) | 2 595 | 1 720 | 1 720 |
| Shares in Joint Ventures (note 9) | 150 599 | 168 132 | 154 316 |
| Pension fund | 0 | 127 | 0 |
| Other long-term receivables | 54 615 | 83 634 | 64 455 |
| Other assets Right-of-use asset |
20 820 51 679 |
21 921 57 200 |
21 445 55 209 |
| Vessels | 1 729 361 | 2 010 950 | 1 922 882 |
| Fixed assets: | |||
| ASSETS | |||
| 30.09.2021 | 30.09.2020 | 31.12.2020 | |
Statement of changes in equity
| Share capital |
Share premium |
Other reservers |
Other paid in equity |
Translation differences |
Other equity |
Total | Minority share |
Total equity |
|
|---|---|---|---|---|---|---|---|---|---|
| Equity as at 01.01.2021 | 3 108 | 177 275 | -535 | 629 | -9 900 | 411 087 | 581 664 | -101 145 | 480 519 |
| Result in the period | 0 | 0 | 0 | 0 | 0 | -146 240 | -146 240 | -7 112 | -153 352 |
| Other adjustments Change in non-controlling interests ** |
0 0 |
0 0 |
0 0 |
0 0 |
9 900 0 |
0 -57 230 |
9 900 -57 230 |
-2 57 230 |
9 898 0 |
| Equity as at 30.09.2021 | 3 108 | 177 275 | -535 | 629 | 0 | 207 618 | 388 095 | -51 030 | 337 065 |
| Share capital |
Share premium |
Other reservers |
Other paid in equity |
Translation differences |
Other equity |
Total | Minority share |
Total equity |
|
| Equity as at 01.01.2020 | 3 108 | 177 275 | -29 035 | 629 | 106 712 | 563 064 | 821 753 | -92 280 | 729 474 |
| Profit in the period | 0 | 0 | 0 | 0 | 0 | -80 174 | -80 174 | -26 229 | -106 403 |
| Other adjustments | 0 | 0 | 28 409 | 0 | 21 033 | -28 409 | 21 033 | 0 | 21 033 |
| Exchange differences Joint Venture * | 0 | 0 | 0 | 0 | -106 712 | 0 | -106 712 | 0 | -106 712 |
| Equity as at 30.09.2020 | 3 108 | 177 275 | -626 | 629 | 21 033 | 454 482 | 655 901 | -118 509 | 537 391 |
| Share capital |
Share premium |
Other reservers |
Other paid in equity |
Translation differences |
Other equity |
Total | Minority share |
Total equity |
|
| Equity as at 01.01.2020 | 3 108 | 177 275 | -29 034 | 629 | 106 712 | 563 064 | 821 753 | -92 280 | 729 474 |
| Result in the period | 0 | 0 | 0 | 0 | 0 | -123 569 | -123 569 | -8 866 | -132 434 |
| Other adjustments | 0 | 0 | 0 | 0 | -9 900 | -28 409 | -38 309 | 0 | -38 309 |
| Exchange differences Joint Venture * | 0 | 0 | 0 | 0 | -106 712 | 0 | -106 712 | 0 | -106 712 |
| Equity as at 31.12.2020 | 3 108 | 177 275 | -535 | 629 | -9 900 | 411 087 | 581 657 | -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 9 and 11 for further information. ** As of September1, 2021, Eidesvik bougth the non controlling shares and holds 100 % of Eidesvik Supply AS, hence the re-distribution of capital from minority to other equity.
Statement of cash flows
| 1.7 - 30.9 | 1.7 - 30.9 | 1.1 - 30.9 | 1.1 - 30.9 | 1.1 - 31.12 | |
|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | 2020 | |
| Net cash flow from operations excl. taxes | 84 231 | 62 701 | 66 228 | 163 643 | 254 429 |
| Paid taxes | 0 | 0 | (128) | (16) | (13) |
| Cash flow from operating activity | 84 231 | 62 701 | 66 100 | 163 627 | 254 416 |
| Sale of fixed assets | 0 | 0 | 23 750 | 0 | 0 |
| Sale of other investments | 0 | 0 | 258 681 | 0 | 0 |
| Payment of long-term receivables (instalments and interests) | 21 169 | 8 948 | 30 340 | 50 061 | 67 482 |
| Purchase of fixed operating assets | (22 401) | (16 100) | (35 589) | (84 295) | (144 941) |
| Cash flow from investment activity | (1 232) | (7 152) | 277 181 | (34 234) | (77 459) |
| Instalment financial lease | (929) | (297) | (2 786) | (2 052) | (3 061) |
| Repayment of debt | (310 745) | (3 113) | (420 514) | (52 055) | (52 303) |
| Paid interest | (23 614) | (26 518) | (65 296) | (83 483) | (100 729) |
| Cash flow from finance activity | (335 288) | (29 928) (488 595) | (137 591) | (156 093) | |
| Changes in cash holdings | (252 289) | 25 621 | (145 314) | (8 198) | 20 864 |
| Liquid assets at the beginning of the period | 536 158 | 374 500 | 429 183 | 408 319 | 408 319 |
Notes to the accounts
Note 1 - Accounting principles
The accounts have been prepared in accordance with IAS 34 Interim Financial Reporting.
There are no changes in accounting policies adopted in the preparation of the interim condensed consolidated financial statements compared with those followed in the preparation of the Group's annual consolidated financial statements for the year ended December 31, 2020.
Note 2 - Financial risk
Interest and foreign exchange risk
The Group has its income mainly in NOK, USD and EUR, while the material operating expenses are in NOK. Therefore, the Group is considerably exposed to fluctuations in the exchange rate of USD/NOK and EUR/NOK. To reduce this risk a considerable share of the Group's debt is drawn in USD, and parts of the liquidity surplus in foreign exchange is sold forward. The financial investments are valued in USD. This implies that fluctuations in USD also results in accounted fluctuations as these assets have to be converted to NOK before recognized in the Group's accounts. In the period following the balance date, a weaker foreign exchange rate will result in reported
foreign exchange gains related to debt and forward contracts in foreign exchange, but will also result in reduced value of long term charter parties in USD (not recognized in the accounts).
The Group has debt in USD and NOK and is exposed to changes in interest rate levels. The Group's interest rate risk is managed through interest swap and cap derivatives, and fixed-rate loans. As a consequence of this, the financial risk of high interest payments is reduced. The following Quarters an increased interest level will result in increased interest expenses, but will also result in increased market value of fixed interest loans. The share of loans with interest swap or fixed interest is 34% for NOK loans and 53% for USD loans per September 30, 2021. Including cap agreements, the Group's share of loans with interest swap/cap or fixed interest per September 30, 2021, is 68% for NOK loans and 93% for USD loans.
Market risk
For 4th Quarter of 2021 contract coverage for all consolidated vessels and the JV vessel "Seven Viking" (incl. 3 vessels in lay up) is approx. 65%, and for 2022 the coverage is approx. 48%.
Newbuild risk
The Group has per September 30, 2021, no vessels under construction.
Credit risk
The Group's customers are mainly relatively solid companies with ability to meet contractual commitments. For most contract parties the risk for not fulfilling their commitments is considered relatively low.
Liquidity risk
The liquidity position is assessed as satisfactory for the next 12 months considering the agreed refinancing in 3rd Quarter 2021.
Note 3 - Seasonal variations
The interim accounts are moderately influenced by seasonal variations. Reference is made to the chapter "Market and future outlook" and the "Contract status".
Note 4 - Special transactions
Other revenues are related to the sale of "Viking Athene" and reversal of previous write-down of paid installments on receivables from Oceanic Seismic Vessels AS. See Note 5 in the Annual Accounts for 2020 for further details.
Note 5 - Estimates
No changes in estimates materially influencing the interim results or balance have occurred.
Due to observed impairment indicators, the vessels' book values have been tested for impairment per September 30, 2021. Based on these tests, impairments of MNOK 28.3 have been charged to the accounts. The average WACC used in the calculations per September 30, 2021, is 8.9%. For further information about the tests and other estimates, reference is made to the 2020 annual accounts Note 12.
Note 6 - Long-term debt drawn
No new long-term debt was drawn during the 3rd Quarter of 2021. The Group's debt was refinanced in the 3rd Quarter 2021 with amendments in the instalment plan. Reference is made to Note 15 for further information.
Note 7 - Dividends
No dividend has been paid in 2021 (2020: 0) in accordance with the covenants of the financial refinancing.
Note 8 - 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 straight-line basis. There is no Time Charter revenue when the vessels are off-hire.
| Operation segment Segment result Operating income Bareboat income 12 299 Operating income share from JV Bareboat income from JV Total operating income 12 299 Operating expenses Operating expenses share from JV* Total operating expenses |
Seismic 1.7.- 30.9 2021 1.7.- 30.9 2020 1.7.- 30.9 2021 1.7.- 30.9 2020 1.7.- 30.9 2021 1.7.- 30.9 2020 1.7.- 30.9 2021 1.7.- 30.9 2020 1.7.- 30.9 2021 1.7.- 30.9 2020 0 1 730 1 052 |
Subsea | Supply | Other | Total | ||||
|---|---|---|---|---|---|---|---|---|---|
| 37 971 | 35 601 | 45 469 | 41 676 | 4 917 | 4 209 | 88 357 | 83 216 | ||
| 52 720 | 37 139 | 22 525 | 21 315 | 0 | 0 | 87 544 | 59 506 | ||
| 0 0 |
8 947 | 8 310 | 0 | 0 | 0 | 0 | 8 947 | 8 310 | |
| 0 0 |
4 082 | 9 679 | 0 | 0 | 0 | 0 | 4 082 | 9 679 | |
| 2 782 | 103 720 | 90 729 | 67 994 | 62 991 | 4 917 | 4 209 | 188 930 | 160 711 | |
| 2 810 3 358 |
41 967 | 31 302 | 43 728 | 45 288 | 5 900 | 3 015 | 94 405 | 82 963 | |
| 0 0 |
7 968 | 7 667 | 0 | 0 | 0 | 0 | 7 968 | 7 667 | |
| 2 810 3 358 |
49 935 | 38 969 | 43 728 | 45 288 | 5 900 | 3 015 | 102 373 | 90 630 | |
| Depreciations | 11 794 8 854 |
22 161 | 22 317 | 19 781 | 17 755 | 1 349 | 671 | 52 145 | 52 537 |
| Depreciations share from JV* | 0 0 |
4 756 | 4 817 | 0 | 0 | 0 | 0 | 4 756 | 4 817 |
| Impairment on assets | 0 0 |
28 295 | 0 | 0 | 0 | 0 | 0 | 28 295 | 0 |
| Impairment on assets share from JV* | 0 0 |
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total depreciations/writedown on assets | 8 854 11 794 |
55 212 | 27 134 | 19 781 | 17 755 | 1 349 | 671 | 85 196 | 57 354 |
| Operating profit incl. share from JV* | 635 -12 370 |
-1 427 | 24 626 | 4 485 | -52 | -2 332 | 523 | 1 361 | 12 727 |
| Net finance and taxes from JV* | 0 0 |
-1 269 | -1 546 | 0 | 0 | 0 | 0 | -1 269 | -1 546 |
| Writedown JV | 0 0 |
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Profit from associated companies | 0 0 |
0 | 0 | 0 | 0 | 874 | 0 | 874 | 0 |
| Operating profit | 635 -12 370 |
-2 696 | 23 080 | 4 485 | -52 | -1 458 | 523 | 967 | 11 182 |
| Number of ships at end of period (incl. JV) | 4 4 |
4 | 4 | 6 | 7 | 14 | 15 |
| Operation segment | Seismic | Subsea | Supply | Other | Total | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1.1.- 30.9 2021 1.1.- 30.9 2020 1.1.- 30.9 2021 1.1.- 30.9 2020 1.1.- 30.9 2021 1.1.- 30.9 2020 1.1.- 30.9 2021 1.1.- 30.9 2020 1.1.- 30.9 2021 1.1.- 30.9 2020 | ||||||||||
| Segment result | ||||||||||
| Operating income | 0 | 7 966 | 102 866 | 84 287 | 131 870 | 142 691 | 14 055 | 13 844 | 248 792 | 248 789 |
| Bareboat income | 15 546 | 24 940 | 116 799 | 90 750 | 61 996 | 59 333 | 0 | 0 | 194 340 | 175 022 |
| Operating income share from JV* | 0 | 0 | 26 717 | 25 102 | 0 | 0 | 0 | 0 | 26 717 | 25 102 |
| Bareboat income from JV* | 0 | 0 | 12 114 | 28 828 | 0 | 0 | 0 | 0 | 12 114 | 28 828 |
| Total operating income | 15 546 | 32 906 | 258 496 | 228 967 | 193 866 | 202 024 | 14 055 | 13 844 | 481 963 | 477 741 |
| Operating expenses | 10 566 | 32 032 | 113 539 | 103 164 | 138 268 | 153 330 | 32 382 | 14 208 | 294 755 | 302 734 |
| Operating expenses share from JV* | 0 | 0 | 24 458 | 25 226 | 0 | 0 | 0 | 0 | 24 458 | 25 226 |
| Total operating expenses | 10 566 | 32 032 | 137 997 | 128 390 | 138 268 | 153 330 | 32 382 | 14 208 | 319 213 | 327 960 |
| Depreciations | 28 070 | 33 483 | 64 535 | 63 501 | 60 920 | 54 993 | 4 186 | 3 419 | 157 711 | 155 396 |
| Depreciations share from JV* | 0 | 0 | 13 890 | 14 356 | 0 | 0 | 0 | 0 | 13 890 | 14 356 |
| Impairment on assets | 33 900 | 11 194 | 28 295 | 12 748 | 0 | 0 | 0 | 0 | 62 195 | 23 942 |
| Impairment on assets share from JV* | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total depreciations/writedown on assets | 61 970 | 44 677 | 106 720 | 90 605 | 60 920 | 54 993 | 4 186 | 3 419 | 233 796 | 193 694 |
| Operating result incl. share from JV* | -56 990 | -43 803 | 13 778 | 9 971 | -5 322 | -6 299 | -22 513 | -3 783 | -71 047 | -43 914 |
| Net finance and taxes from JV* | 0 | 0 | -4 199 | -5 736 | 0 | 0 | 0 | 0 | -4 199 | -5 736 |
| Writedown JV | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Result from associated companies | 0 | 0 | 0 | 0 | 0 | 0 | 874 | 0 | 874 | 0 |
| Operating result | -56 990 | -43 803 | 9 579 | 4 235 | -5 322 | -6 299 | -21 639 | -3 783 | -74 372 | -49 650 |
| Number of ships at end of period (incl. JV) | 4 | 4 | 4 | 4 | 6 | 7 | 14 | 15 |
* 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 9 - Joint venture
| Company | Assets | Liability | Equity | Revenues | Profit Ownership Book value | Result portion |
||
|---|---|---|---|---|---|---|---|---|
| Eidesvik Seven AS | 553 315 | 284 737 | 268 578 | 24 228 | -13 107 | 50 % | 134 289 | -6 554 |
| Eidesvik Seven Chartering AS | 63 310 | 30 690 | 32 620 | 77 662 | 5 674 | 50 % | 16 310 | 2 837 |
| Profit from Joint Ventures | 150 599 | (3 717) |
| Company | Ownership/ voting share |
Book value 30.09.2021 |
Result portion |
|---|---|---|---|
| Bleivik Eiendom AS | 23 % | 2 595 | 1 940 |
| Eidesvik Ghana Ltd. | 49 % | 0 | -1 065 |
| Profit from associated companies | 2 595 | 874 |
| Company | Assets | Liability | Equity | Revenues | Profit Ownership Book value | Profit | ||
|---|---|---|---|---|---|---|---|---|
| portion | ||||||||
| Eidesvik Seven AS | 692 819 | 384 144 | 308 675 | 57 655 | 16 636 | 50 % | 154 338 | 8 298 |
| Eidesvik Seven Chartering AS | 34 804 | 7 216 | 27 588 | 107 859 | 630 | 50 % | 13 794 | 314 |
| Profit from Joint Ventures | 168 133 | 8 613 |
| 1.7 - 30.9 | 1.7 - 30.9 | 1.1 - 30.9 | 1.1 - 30.9 | 1.1 - 31.12 | |
|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | 2020 | |
| Number of Shares (thousands) | 62 150 | 62 150 | 62 150 | 62 150 | 62 150 |
| Earnings pr share, NOK | -0,54 | 0,30 | -2,35 | -1,29 | -1,99 |
| Equity pr share, NOK | 5,42 | 8,65 | 5,42 | 8,65 | 7,73 |
| Financial Equity Ratio | 13 % | 17 % | 13 % | 17 % | 16 % |
| EBITDA margin excl. gain on sale | 47 % | 42 % | 34 % | 29 % | 25 % |
| EBIT margin excl. gain on sale | 1 % | 8 % | -17 % | -12 % | -38 % |
| 1.7 - 30.9 | 1.7 - 30.9 | 1.1 - 30.9 | 1.1 - 30.9 | 1.1 - 31.12 | |
| 2021 | 2020 | 2021 | 2020 | 2020 | |
| Financial income* | 2 087 | 4 088 | 6 608 | 117 231 | 116 124 |
| Impairment long-term receivables | 4 482 | 2 486 | 6 151 | 5 037 | 7 268 |
| Other interest and financial expenses | (18 608) | (23 560) | (55 738) | (86 654) | (105 915) |
| Interest cost - lease liabilities | (721) | (261) | (2 164) | (1 808) | (3 118) |
| Change in market value on interest instruments | 474 | 864 | 514 | (19 874) | (17 521) |
| Realized agio on foreign exchange contracts | 958 | 0 | 2 485 | 384 | (7 816) |
| Realized agio - others | (17 448) | (1 635) | (22 154) | (9 375) | 1 038 |
| Unrealized agio - on foreign exchange contracts | (1 205) | 3 983 | (4 672) | (1 882) | 23 108 |
| Unrealized agio - loans | (5 685) | 30 955 | (10 010) | (59 976) | 54 669 |
* MNOK 106.7 relates to reversed translation differences due to the sale of Global Seismic Shipping AS in 1st Quarter 2020.
| 30.09.2021 30.09.2020 | |
|---|---|
| Short-term interest-bearing debt 88 180 |
83 435 |
| Accrued interests (3 607) |
(4 443) |
| 1st year installment on long-term interest-bearing debt 84 573 |
78 992 |
| Short-term lease liabilities (IFRS 16) 3 256 |
3 256 |
| Short-term interest-bearing debt 87 829 |
82 248 |
| Long-term interest-bearing debt 1 881 605 |
2 415 958 |
| Long-term lease liabilities (IFRS 16) 52 075 |
55 870 |
| Long-term interest-bearing debt 1 933 680 |
2 471 828 |
| Total interest-bearing debt 2 021 509 |
2 554 076 |
| Cash and cash equivalents (283 869) |
(400 121) |
| Net interest-bearing debt 1 737 640 |
2 153 955 |
Note 13 - Related-party transactions
The ordinary operating related transactions with the joint ventures Eidesvik Seven AS and Eidesvik Seven Chartering AS (*Global Seismic Shipping AS, *Oceanic Seismic Vessels AS, *CGG Eidesvik Ship Management AS, *CGG Eidesvik Crewing I AS), and the related companies Eidesvik Invest AS, Langevåg Senter AS, Bømlo Skipsservice AS, Evik AS and Bømmelfjord AS, no material related-party transactions have been conducted. Reference is made to the 2020 annual accounts Note 24.
*Sold January 8, 2020.
Note 14 - Shareholders
No major changes in the shareholder positions have ocurred in the period.
20 largest shareholders per September 30, 2021:
| Name | Share | Country |
|---|---|---|
| EIDESVIK INVEST AS | 59,86 % | NORWAY |
| JAKOB HATTELAND HOLDING AS | 4,93 % | NORWAY |
| VINGTOR INVEST AS | 2,31 % | NORWAY |
| STANGELAND HOLDING AS | 1,76 % | NORWAY |
| BERGTOR INVESTERING AS | 1,76 % | NORWAY |
| HJELTEFJORDEN AS | 1,49 % | NORWAY |
| HELGØ FORVALTNING | 1,04 % | NORWAY |
| TVEITÅ, EINAR KRISTIAN | 0,96 % | NORWAY |
| DUNVOLD INVEST AS | 0,85 % | NORWAY |
| SKANDINAVISKA ENSKILDA BANKEN AB | 0,82 % | SWEDEN |
| HELGØ INVEST AS | 0,80 % | NORWAY |
| HELLAND AS | 0,76 % | NORWAY |
| CALIFORNIA INVEST AS | 0,73 % | NORWAY |
| TVEITÅ, OLAV MAGNE | 0,71 % | NORWAY |
| COLORADO EIENDOM AS | 0,63 % | NORWAY |
| MELING, JAN FREDRIK | 0,54 % | NORWAY |
| CAIANO SHIP AS | 0,52 % | NORWAY |
| OLAVS HOLDING AS | 0,47 % | NORWAY |
| SKANDINAVISKA ENSKILDA BANKEN AB | 0,46 % | SWEDEN |
| NORDNET BANK AB | 0,42 % | SWEDEN |
Note 15 - The refinancing
On August 27, 2021, Eidesvik announced that it had agreed on a term sheet ("Term Sheet") with its financial institutions for refinancing of its debt. On September 10, 2021, the final agreements and documentation were in place and the new terms for the Group's financing became effective.
The agreed terms provide mechanisms for extension of final maturities of debt facilities from the end of 2022 to the end of 2023, and there will be no final maturities until year end 2023. The extension is subject to Eidesvik meeting certain financial and operational triggers.
Summary of the refinancing
Amortization:
- Facility prepayment of approximately NOK 209 million was made on the date of signing and final documentation. This was a combination of prepayment of agreed instalments for H2 2021 and surplus cash on facility levels as per June 30, 2021.
- NOK 100 million in up-front prepayment from corporate cash was made on the date of signing and final documentation. This was distributed pro-rata to the financial institutions based on outstanding debt per Q2 2021, after facility prepayment.
- In 2022, scheduled amortization amounts to approximately NOK 112 million in total for the Group.
- In H1 2023, scheduled amortization amounts to approximately NOK 8 million in total for the Group. Depending on market conditions related to one vessel, additional NOK 24 million may become payable as fixed amortization and distributed pro-rata among the financial institutions during H1 2023 based on the outstanding debt under each facility per January 1, 2023.
- In H2 2023, scheduled amortization amounts to approximately NOK 72 million in total for the Group.
- Cash sweep: During the refinancing period, all excess cash above certain threshold levels with respect to each facilities agreement shall be applied towards repayment of the outstanding debt under that facilities agreement in inverse order of maturity. Excess cash will be measured semi-annualy.
Interest rates:
- No amendments.
Financial coventants:
- Minimum free liquidity of NOK 70 million on a consolidated basis.
- Positive working capital (current assets less current liabilities, excluding current portion of long term debt).
- Loan to value: Suspended until the end of the refinancing period.
Other covenants:
- Change of control (no amendments):
- o If Eidesvik Invest AS or the Eidesvik family controls less than 33.4% of the shares and votes in the Group, or
- o If someone other than Eidesvik Invest AS gains negative control in the Group
Other conditions:
- Cash pooling: There will be no cash pooling between the subsidiaries in Eidesvik. To the extent necessary, Eidesvik may transfer a subordinated, non-cash interest bearing and assigned intercompany loans for payments of upcoming liabilities in any facility. Any such loan having been received in any facility must be repaid in full to Eidesvik prior to any calculation of excess cash or payment of any cash sweep under the relevant facility.
- Sale of none-core vessels: Eidesvik has identified and classified 4 vessels as none-core. According to the agreement, a plan regulating the sales process for these vessels was established.
Note 16 - Subsequent events
The subsequent events have no material consequense for the accounts per September 30, 2021.
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.
| 2021 | 2020 | ||
|---|---|---|---|
| 1.7 - 30.9 | 1.7 - 30.9 | ||
| Total operating income | 174 818 | 142 721 | |
| Total operating expenses | (93 321) | (82 960) | |
| EBITDA | 81 497 | 59 762 | |
| Ordinary depreciation | (52 145) | (52 540) | |
| Impairment on assets | (28 295) | 0 | |
| Profit from Joint Ventures | (90) | 3 960 | |
| EBIT | 967 | 11 182 |
Appendix 3 – Contract status and coverage September 30, 2021:
Condensed statement of comprehensive income last 5 Quarters
| Consolidated | 2021 | 2021 | 2021 | 2020 | 2020 |
|---|---|---|---|---|---|
| (NOK 1 000) Operating Income: |
Q3 | Q2 | Q1 | Q4 | Q3 |
| Freight income | 167 723 | 153 825 | 109 603 | 100 713 | 142 721 |
| Other income | 7 095 | 3 804 | 0 | 6 237 | 0 |
| Total operating income | 174 818 | 157 629 | 109 603 | 106 950 | 142 721 |
| Operating Expenses: | |||||
| Personell expenses | 63 573 | 72 011 | 65 997 | 63 672 | 55 840 |
| Other operating expenses | 29 749 | 32 422 | 29 920 | 33 242 | 27 120 |
| Total operating expenses | 93 321 | 104 434 | 95 918 | 96 914 | 82 960 |
| Operating result before depreciations | 81 497 | 53 195 | 13 685 | 10 036 | 59 762 |
| Ordinary depreciation | 52 145 | 52 706 | 52 860 | 52 230 | 52 540 |
| Writedown on assets | 28 295 | 0 | 33 900 | 96 738 | 0 |
| Operating result before other income and expenses |
1 057 | 489 | (73 075) | (138 933) | 7 222 |
| Result from JV | (90) | (1 517) | (1 235) | (13 816) | 3 960 |
| Operating result | 967 | (1 029) | (74 310) | (152 749) | 11 182 |
| Financial Items: | |||||
| Financial income | 2 087 | 2 226 | 2 296 | (1 107) | 4 088 |
| Financial expenses | (14 373) | (17 562) | (19 302) | (15 986) | (20 470) |
| Net agio (disagio) | (23 380) | (5 914) | (5 057) | 141 850 | 33 302 |
| Net financial items | (35 666) | (21 250) | (22 064) | 124 757 | 16 921 |
| Pre-tax result | (34 699) | (22 279) | (96 374) | (27 992) | 28 103 |
| Taxes | 0 | 0 | 0 | 1 962 | 233 |
| Result | (34 699) | (22 279) | (96 374) | (26 030) | 28 336 |
| Equity holders of the parent | (33 646) | (22 517) | (90 076) | (43 394) | 18 715 |
| Non-controlling interests | (1 053) | 239 | (6 298) | 17 364 | 9 621 |
| Earnings per share | (0,54) | (0,36) | (1,45) | (0,70) | 0,30 |
| Statement of comprehensive income | |||||
| Actuarial gain/ loss | 0 | 0 | 0 | 91 | 0 |
| Change in value stocks | 0 | 0 | 9 900 | (30 933) | (7 896) |
| Comprehensive income | (34 699) | (22 279) | (86 474) | (56 872) | 20 440 |
| Attributalbe to | |||||
| Controlling interests | (33 646) | (22 517) | (80 176) | (74 236) | 10 819 |
| Non-controlling interests | (1 053) | 239 | (6 298) | 17 364 | 9 621 |
| Total attributed | (34 699) | (22 279) | (86 474) | (56 872) | 20 440 |
Condensed statement of financial position last 5 Quarters
| Consolidated | 2021 | 2021 | 2021 | 2020 | 2020 |
|---|---|---|---|---|---|
| (NOK 1 000) | Q3 | Q2 | Q1 | Q4 | Q3 |
| ASSETS | |||||
| Fixed assets: | |||||
| Vessels | 1 729 361 | 1 803 764 | 1 849 631 | 1 922 882 | 2 010 950 |
| Other assets | 20 820 | 20 962 | 21 204 | 21 445 | 21 921 |
| Right-of-use asset | 51 679 | 52 855 | 54 032 | 55 209 | 57 200 |
| Other long-term receivables | 54 615 | 63 520 | 66 692 | 64 455 | 83 634 |
| Pension fund Shares in Joint Venture |
0 150 599 |
0 151 563 |
0 153 081 |
0 154 316 |
127 168 132 |
| Shares | 2 595 | 1 720 | 1 720 | 1 720 | 1 720 |
| Total fixed assets | 2 009 668 | 2 094 385 | 2 146 360 | 2 220 027 | 2 343 684 |
| Current assets: | |||||
| Financial investments | 0 | 0 | 0 | 255 978 | 284 442 |
| Account receivables, | 173 154 | 155 833 | 127 857 | 101 416 | 139 457 |
| Other short-term receivables Financial derivatives |
43 309 1 411 |
54 253 2 616 |
66 309 3 850 |
65 224 25 284 |
72 141 8 733 |
| C ash and cash equivalents | 283 869 | 536 158 | 551 636 | 429 183 | 400 121 |
| Total current assets | 501 742 | 748 861 | 749 652 | 877 086 | 904 895 |
| TOTAL ASSETS | 2 511 411 | 2 843 246 | 2 896 012 | 3 097 113 | 3 248 579 |
| EQUITY AND LIABILITIES | |||||
| Equity attributable to the company's shareholders: | |||||
| Share capital | 3 108 | 3 108 | 3 108 | 3 108 | 3 108 |
| Premium fund | 177 275 | 177 275 | 177 275 | 177 275 | 177 275 |
| Other paid-in equity | 629 | 629 | 629 | 629 | 629 |
| Other comprehensive income | (535) | (535) | (535) | (535) | (626) |
| Translation differences | 0 | 0 | 0 | (9 900) | 21 033 |
| Retained earnings | 207 618 | 298 493 | 321 011 | 411 087 | 454 481 |
| Total equity majority shareholders | 388 095 | 478 970 | 501 488 | 581 664 | 655 900 |
| Non-controlling interests | (51 030) | (107 204) | (107 443) | (101 145) | (118 509) |
| Total equity | 337 065 | 371 766 | 394 045 | 480 519 | 537 391 |
| Long-term liabilities: | |||||
| Financial derivatives | 2 341 | 2 897 | 4 499 | 7 158 | 22 321 |
| Lease liabilities | 52 075 | 53 004 | 53 932 | 54 861 | 55 870 |
| Pension liabilities | 236 | 236 | 236 | 236 | 0 |
| Other long-term liabilities | 10 549 | 12 159 | 11 373 | 11 373 | 7 702 |
| Interest-bearing debt | 1 881 605 | 1 931 539 | 2 032 272 | 2 193 798 | 2 415 958 |
| Total long-term liabilities | 1 946 805 | 1 999 835 | 2 102 312 | 2 267 426 | 2 501 851 |
| Short-term liabilities: | |||||
| Interest-bearing debt | 88 180 | 324 158 | 259 178 | 166 596 | 83 435 |
| Financial derivatives | 8 680 | 11 141 | 12 519 | 13 442 | 21 399 |
| Lease liabilities | 3 256 | 3 256 | 3 256 | 3 256 | 3 256 |
| Accounts payable | 35 005 | 33 031 | 21 117 | 48 061 | 25 171 |
| Other short-term liabilities | 92 419 | 100 059 | 103 585 | 117 813 | 76 076 |
| Total short-term liabilities | 227 540 | 471 645 | 399 655 | 349 168 | 209 337 |
| Total liabilities | 2 174 346 | 2 471 480 | 2 501 967 | 2 616 594 | 2 711 188 |
| TOTAL EQUITY AND LIABILITIES | 2 511 411 | 2 843 246 | 2 896 012 | 3 097 113 | 3 248 579 |
mr## Your Partner in Shipping