Eidesvik Offshore — Interim / Quarterly Report 2021

May 20, 2021

Eidesvik Offshore ASA Report for 1 st Quarter 2021

Highlights in 1 st Quarter 2021

In 1 st Quarter 2021 Eidesvik Offshore ASA ("Eidesvik" or the "Group") generated a consolidated EBITDA of MNOK 13.7, compared to MNOK 28.2 in 1 st Quarter 2020.

Eidesvik exercised the PUT-option for its shares in Shearwater GeoServices Holding AS ("Shearwater") effectively selling all its shares in Shearwater to CGG SA for a total consideration of USD 30 million in cash. The cash settlement was received in January 2021.

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

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

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

Eidesvik was awarded a new contract by Equinor Energy AS for "Viking Queen". The new contract commenced in April this year, in direct continuation of the excisting contract with Equinor. The new firm contract period is 10 months, with options for further extensions.

Subsequent events

Eidesvik has sold the PSV "Viking Athene". Delivery of the vessel took place April 28, 2021. The vessel will exit the North Sea supply vessel market and be utilized by the new owner as a Farming Service Vessel. The sale of the vessel will result in an immaterial accounting effect for the 2 nd Quarter 2021.

Eidesvik entered into a bareboat contract for 130 days including transit with an undisclosed 3rd party operator for "Veritas Viking". The vessel will be mobilized from its current location at Bømlo in May 2021 and commence the bareboat contract in June 2021.

Results 1st Quarter 2021

The interim accounts have been prepared in accordance with IAS 34. The interim accounts of 1 st Quarter 2021 and corresponding figures for 2020 have not been audited.

In the 1 st Quarter 2021 Eidesvik had consolidated operating income of MNOK 109.6 (MNOK 136.8 in the corresponding period in 2020). Operating result before depreciations (EBITDA) was MNOK 13.7 (MNOK 28.2). Operating result (EBIT) was MNOK -74.3 (MNOK -18.9). Result from joint ventures was MNOK -1.2 (MNOK 2.5). Net financial items were MNOK -22.1 (MNOK -160.2). Result after tax amounted to MNOK -96.4 (MNOK -179.2).

Balance sheet and liquidity per March 31, 2021

Current assets at March 31, 2021, was MNOK 749.7 (MNOK 963.2 at March 31, 2020), and cash balance was MNOK 551.6 (MNOK 380.5), whereof MNOK 52.9 is restricted cash and MNOK 14.7 is funding restricted to the ammonia project.

Book equity at March 31, 2021, was MNOK 394.0 (MNOK 495.4 at March 31, 2020), i.e. an equity ratio of 14% (15%). The total booked equity per share at March 31, 2021 was NOK 6.34 (NOK 7.97). The corresponding market quote at Oslo Stock Exchange closed at NOK 4.24 (NOK 3.48). This represents a market capitalization of MNOK 263.5 (MNOK 216.3).

Due to observed impairment indicators, the vessels' book values have been tested for impairment per March 31, 2021. Based on these tests, impairments of MNOK 33.9 have been charged to the accounts.

Net interest-bearing debt at March 31, 2021, was MNOK 1,793.0 (MNOK 2,356.5 at March 31, 2020). The decrease in net interest–bearing debt is mainly a result of instalments, the effect from USD depreciation against NOK, and an increase in the cash balance.

Cash flow from operating activities per March 31, 2021, amounted to MNOK -38.1 (MNOK 51.5 per March 31, 2020).

Cash flow from investment activities per March 31, 2021, was MNOK 250.7 (MNOK -22.6 per March 31, 2020).

Cash flow from financing activities per March 31, 2021, of MNOK -90.2 (MNOK -56.6 per March 31, 2020) consisted of payments of interest and deferred installments on secured debt.

Variation in the operation of vessels in 2021 compared to 2020

Supply

The supply segment's EBITDA per March 31, 2021, was MNOK 9.5 (MNOK 22.0 in the corresponding period in 2020), a decrease of MNOK 12.5. This is a result of decrease in revenues.

Subsea

The subsea/offshore wind segment including shares of Joint Venture's EBITDA per March 31, 2021, was MNOK 21.1 (MNOK 9.1 in the corresponding period in 2020), an increase of MNOK 12.0. The main reason is that Viking Neptun was on contract during most of the Quarter in 2021. The consolidated part of the segment had per March 31, 2021, an EBITDA of MNOK 16.2 (MNOK -0.4).

Seismic

The seismic segment's EBITDA per March 31, 2021, was MNOK -3.8 (MNOK 3.9 in the corresponding period in 2020), a decrease of MNOK 7.8. The decrease is mainly related to all vessels being in lay up in 2021 (versus "Vantage" in operation in 2020).

Financing

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

Eidesvik is currently negotiating with its lenders aiming to reduce the debt service commitments from the second half of 2021. Even though it is still too early to predict the outcome of the negotiations with the lenders, the Board is optimistic that an agreement can be reached. However, the Board of Directors would like to emphasize that there is material uncertainty related to the going concern assumption.

Market and future outlook

PSV Market

A decent number of term fixtures were concluded on the Norwegian continental shelf ("NCS") in the 1st Quarter of the year. This had an immediate positive effect on the rate levels in the North Sea spot market. Term rates levels lagged however, as there are few long-term requirements expected on the NCS for the remainder of the year.

There are currently few large, environmentally friendly PSVs available in the market. We see the trend continuing with increasing preference towards this category of vessels from clients. Hence, we have a positive outlook for this specific part of the North Sea PSV fleet.

Subsea and Offshore Wind Markets

Utilisation levels for the North Sea subsea fleet increased to 60% in the end of 1st Quarter. This is the same utilisation level as 1st Quarter last year. This could indicate that the activity level for 2021 will be relatively good.

The main subsea companies reported multiple contract awards during the 1st Quarter, solid backlogs and numerous addressable market opportunities. Consequently, our long term market outlook for this segment remains positive, however the market for 2022 is still uncertain.

The activity within offshore wind continues to increase with numerous contract awards in the 1st Quarter, including the 5-year contract extension for Acergy Viking. We remain positive to this market.

Seismic Market

There is still some tendering activity for source vessels for the second half of 2021, and we experience some tenders for 2022 indicating increased activity in the seismic OBN market beyond 2021.

Bømlo, May 20, 2021
---------------------	--	--

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

Jan Fredrik Meling CEO

Condensed statement of comprehensive income (NOK 1 000)

	2021 1.1 - 31.3	2020 1.1 - 31.3	2020 1.1 - 31.12
Operating Income
Freight income	109 603	129 708	510 445
Other income (note 4)	0	7 128	20 315
Total operating income	109 603	136 835	530 760
Operating Expenses
Personnel expenses	65 997	73 943	272 829
Other operating expenses	29 920	34 671	126 817
Total operating expenses	95 918	108 614	399 647
Operating result before depreciations	13 685	28 221	131 113
Ordinary depreciation	52 860	49 615	207 628
Impairment on assets	33 900	0	120 679
Operating result before other income and expenses	(73 075)	(21 394)	(197 194)
Result from Joint Ventures	(1 235)	2 477	(5 204)
Operating result	(74 310)	(18 916)	(202 398)
Financial Items (note 11)
Financial income Financial expenses	2 296 (19 302)	110 953 (48 705)	116 124 (119 286)
Net agio (disagio)	(5 057)	(222 433)	71 000
Net financial items	(22 064)	(160 185)	67 838
Pre-tax result	(96 374)	(179 101)	(134 560)
Taxes	0	(69)	2 126
Result	(96 374)	(179 171)	(132 434)
Attributable to
Equity holders of the parent	(90 076)	(126 226)	(123 569)
Non-controlling interests	(6 298)	(52 944)	(8 866)
Earnings per share	(1,45)	(2,03)	(1,99)
Statment of comprehensive
income
Profit	(96 374)	(179 171)	(132 434)
Currency translation adjustments Joint Ventures	0	(106 712)	(106 712)
Actuarial gain/ loss	0	0	28 500
Comprehensive income	(86 474)	(234 120)	(220 546)
Attributable to
Equity holders of the parent	(80 176)	(181 176)	(211 680)
Non-controlling interests	(6 298)	(52 944)	(8 866)
Total attributed	(86 474)	(234 120)	(220 546)

Condensed statement of financial position

(NOK 1 000)

	31.03.2021	31.03.2020	31.12.2020
ASSETS
Fixed assets:
Vessels	1 849 631	2 105 562	1 922 882
Other assets	21 204	20 079	21 445
Financial derivatives	0	0	0
Right-of-use asset	54 032	58 793	55 209
Other long-term receivables	66 692	102 031	64 455
Pension fund	0	127	0
Shares in Joint Ventures (note 9)	153 081	161 998	154 316
Shares	1 720	1 720	1 720
Total fixed assets	2 146 360	2 450 310	2 220 027
Current assets:
Financial investments	0	315 171	255 978
Account receivables, freight income	127 857	177 308	101 416
Other short-term receivables	66 309	90 209	65 224
Financial derivatives	3 850	0	25 284
C ash and cash equivalents	551 636	380 546	429 183
Total current assets	749 652	963 235	877 086
TOTAL ASSETS	2 896 012	3 413 544	3 097 113
EQUITY AND LIABILITIES
Equity
Equity attributable to the company's shareholders:
Share capital	3 108	3 108	3 108
Premium fund	177 275	177 275	177 275
Other paid-in equity	629	629	629
Other comprehensive income	(535)	(626)	(535)
Translation differences	0	51 762	-9 900
Retained earnings Total equity majority shareholders	321 011	408 430	411 087
	501 488	640 578	581 664
Non-controlling interests	(107 443)	(145 224)	(101 145)
Total equity	394 045	495 354	480 519
Long-term liabilities:
Financial derivatives	4 499	34 765	7 158
Lease liabilities (note 12)	53 932	57 094	54 861
Pension liabilities	236	0	236
Other long-term liabilities	11 373	0	11 373
Interest-bearing debt (note 12)	2 032 272	2 580 956	2 193 798
Total long-term liabilities	2 102 312	2 672 815	2 267 426
Short-term liabilities:
Interest-bearing debt (note 12)	259 178	107 262	166 596
Financial derivatives	12 519	32 343	13 442
Lease liabilities (note 12)	3 256	3 256	3 256
Accounts payable	21 117	21 547	48 061
Tax payable	0	0	0
Other short-term liabilities	103 585	80 969	117 813
Total short-term liabilities	399 655	245 376	349 168
Total liabilities	2 501 967	2 918 191	2 616 594
TOTAL EQUITY AND LIABILITIES	2 896 012	3 413 544	3 097 113

Statement of changes in equity

(condensed)

	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	581 657	-101 145	480 519
Result in the period	0	0	0	0	0	-90 076	-90 076	-6 298	-96 374
Other adjustments	0	0	0	0	9 900	0	9 900	0	9 900
Equity as at 31.03.2021	3 108	177 275	-535	629	0	321 010	501 481	-107 443	394 045
	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	-126 225	-126 225	-52 944	-179 170
Other adjustments	0	0	28 409	0	51 762	-28 409	51 762	0	51 762
Exchange differences Joint Venture *	0	0	0	0	-106 712	0	-106 712	0	-106 712
Equity as at 31.03.2020	3 108	177 275	-626	629	51 762	408 430	640 578	-145 224	495 354
	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	28 500	0	-106 712	0	-78 212	0	-78 212
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.

Statement of cash flows

(condensed)

	1.1 - 31.3	1.1 - 31.3	1.1 - 31.12
	2021	2020	2020
Net cash flow from operations excl. taxes	(38 000)	51 481	254 429
Paid taxes	(128)	(16)	(13)
Cash flow from operating activity	(38 128)	51 465	254 416
Sale of other investments	258 681	0	0
Payment of long-term receivables (instalments and interests)	0	24 734	67 482
Purchase of fixed operating assets	(7 936)	(47 342)	(144 941)
Cash flow from investment activity	250 744	(22 608)	(77 459)
Instalment financial lease	(929)	(829)	(3 061)
Repayment of debt	(63 544)	(21 547)	(52 303)
Paid interest	(25 690)	(34 253)	(100 729)
Cash flow from finance activity	(90 163)	(56 630)	(156 093)
Changes in cash holdings	122 453	(27 773)	20 864
Liquid assets at the beginning of the period	429 183	408 319	408 319
Liquid assets at the end of the period	551 636	380 546	429 183

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 33% for NOK loans and 44% for USD loans per March 31, 2021. Including cap agreements, the Group's share of loans with interest swap/cap or fixed interest per March 31, 2021, is 63% for NOK loans and 78% for USD loans.

Market risk

For 2nd Quarter of 2021 contract coverage for all consolidated vessels and the JV vessel "Seven Viking" (incl. 4 vessels in lay up) is approx. 66%, and for the rest of 2021 the coverage is approx. 61%.

Newbuild risk

The Group has per March 31, 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 current liquidity position of the Group is satisfactory, particularly taking into account the settlement of MUSD 30 from the sale of the shares in Shearwater GeoServices Holding AS. The Group's current projections of cash flow indicate that a revised agreement with its lenders will have to be in place in less than 12 months.

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 in 2020 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 2020 for further details. No other revenues in 1st Quarter 2021.

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 March 31, 2021. Based on these tests, impairments of MNOK 33.9 related to two vessels has been charged to the accounts. The average WACC used in the calculations per March 31, 2021, is 8.8%. 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 1st Quarter of 2021. The Group's debt was restructured in the 1st Quarter 2018 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 restructuring.

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		Seismic	Subsea		Supply		Other		Total
		1.1.- 31.3 2021 1.1.- 31.3 2020 1.1.- 31.3 2021			1.1.- 31.3 2020 1.1.- 31.3 2021		1.1.- 31.3 2020 1.1.- 31.3 2021	1.1.- 31.3 2020 1.1.- 31.3 2021		1.1.- 31.3 2020
Segment result
Operating income	-141	5 628	29 060	22 235	39 092	55 084	4 830	4 762	72 842	87 708
Bareboat income	0	14 331	20 489	13 451	16 273	21 345	0	0	36 761	49 128
Operating income share from JV*	0	0	8 726	8 567	0	0	0	0	8 726	8 567
Bareboat income from JV*	0	0	3 994	9 574	0	0	0	0	3 994	9 574
Total operating income	-141	19 959	62 269	53 827	55 365	76 429	4 830	4 762	122 323	154 977
Operating expenses	3 704	16 050	33 363	36 073	45 887	54 423	12 964	2 069	95 918	108 615
Operating expenses share from JV*	0	0	7 808	8 647	0	0	0	0	7 808	8 647
Total operating expenses	3 704	16 050	41 171	44 720	45 887	54 423	12 964	2 069	103 726	117 262
Depreciations	20 639	10 844	10 441	18 595	20 361	18 808	1 418	1 368	52 859	49 615
Depreciations share from JV*	0	0	4 535	4 769	0	0	0	0	4 535	4 769
Writedown on assets	33 900	0	0	0	0	0	0	0	33 900	0
Writedown on assets share from JV*	0	0	0	0	0	0	0	0	0	0
Total depreciations/writedown on assets	54 539	10 844	14 976	23 364	20 361	18 808	1 418	1 368	91 294	54 384
Operating profit incl. share from JV*	-58 384	-6 935	6 122	-14 257	-10 883	3 198	-9 552	1 325	-72 697	-16 669
Net finance and taxes from JV*	0	0	-1 612	-2 247	0	0	0	0	-1 612	-2 247
Writedown JV	0	0	0	0	0	0	0	0	0	0
	0	0	0	0	0	0	0	0
Profit from other JV	0	0	0	0	0	0	0	0	0	0
Operating profit	-58 384	-6 935	4 510	-16 505	-10 883	3 198	-9 552	1 325	-74 310	-18 915
Number of ships at end of period (incl. JV)	4	4	4	4	7	7			15	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	Summarized financial information per March 31, 2021, of the individual joint venture companies: Assets	Liability	Equity	Revenues			Profit Ownership Book value	Result
								portion
Eidesvik Seven AS	649 996	372 936	277 060	7 987	-4 626	50 %	138 530	-2 313
Eidesvik Seven Chartering AS	63 563	34 460	29 102	25 440	2 156	50 %	14 551	1 078
Profit from Joint Ventures							153 081	(1 235)

Summarized financial information per March 31, 2020 of the individual joint ventures companies:

Company	Assets	Liability	Equity	Revenues			Profit Ownership Book value	Profit portion
Eidesvik Seven AS	705 530	408 844	296 686	19 148	4 646	50 %	148 363	2 323
Eidesvik Seven Chartering AS	52 346	25 079	27 268	36 282	309	50 %	13 635	153
Profit from Joint Ventures							161 998	2 477

Note 10 - Financial ratio per share

	1.1 - 31.3	1.1 - 31.3	1.1 - 31.12
	2021	2020	2020
Number of Shares (thousands)	62 150	62 150	62 150
Earnings pr share, NOK	-1,45	-2,03	-1,99
Equity pr share, NOK	6,34	7,97	7,73
Financial Equity Ratio	14 %	15 %	16 %
EBITDA margin excl. gain on sale	12 %	21 %	25 %
EBIT margin excl. gain on sale	-68 %	-14 %	-38 %

Note 11- Financial items

	1.1 - 31.3	1.1 - 31.3	1.1 - 31.12
	2021	2020	2020
Financial income*	2 296	110 953	116 124
Impairment long-term receivables	0	2 550	7 268
Other interest and financial expenses	(18 908)	(30 384)	(105 915)
Interest cost - lease liabilities	(721)	(765)	(3 118)
Change in market value on interest instruments	327	(20 106)	(17 521)
Realized agio on foreign exchange contracts	898	71	(7 816)
Realized agio - others	(3 072)	(3 008)	1 038
Unrealized agio - on foreign exchange contracts	(2 234)	(36 996)	23 108
Unrealized agio - loans	(650)	(182 500)	54 669
Net financial items	(22 064)	(160 185)	67 838

* MNOK 106.7 relates to reversed translation differences due to the sale of Global Seismic Shipping AS in 1st Quarter 2020.

Note 12 - Net interest-bearing debt

		31.03.2021 31.03.2020
Short-term interest-bearing debt	259 178	107 262
Accrued interests	(4 048)	(11 558)
Liabilities related to Assets held for sale	0	0
1st year installment on long-term interest-bearing debt	255 130	95 704
Short-term lease liabilities (IFRS 16)	3 256	3 256
Short-term interest-bearing debt	258 386	98 960
Long-term interest-bearing debt	2 032 272	2 580 956
Long-term lease liabilities (IFRS 16)	53 932	57 094
Long-term interest-bearing debt	2 086 205	2 638 050
Total interest-bearing debt	2 344 591	2 737 010
Cash and cash equivalents	(551 636)	(380 546)
Net interest-bearing debt	1 792 955	2 356 463

Note 13 - Related-party transactions

The ordinary operating related transactions with the joint ventures *Global Seismic Shipping AS, *Oceanic Seismic Vessels AS, *CGG Eidesvik Ship Management AS, *CGG Eidesvik Crewing I AS, 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 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 March 31, 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	1,63 %	NORWAY
TVEITÅ, EINAR KRISTIAN	1,21 %	NORWAY
SKANDINAVISKA ENSKILDA BANKEN AB	0,82 %	SWEDEN
DUNVOLD INVEST AS	0,77 %	NORWAY
HELLAND AS	0,76 %	NORWAY
CALIFORNIA INVEST AS	0,73 %	NORWAY
TVEITÅ, OLAV MAGNE	0,71 %	NORWAY
COLORADO EIENDOM AS	0,63 %	NORWAY
SKANDINAVISKA ENSKILDA BANKEN AB	0,62 %	SWEDEN
NORDNET BANK AB	0,54 %	SWEDEN
MELING, JAN FREDRIK	0,54 %	NORWAY
CAIANO SHIP AS	0,44 %	NORWAY
KEMP, KRISTIAN NEIL	0,40 %	NORWAY
LGJ INVEST AS	0,40 %	SWEDEN
HELGØ INVEST AS	0,40 %	NORWAY

Note 15 - The financial restructuring

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

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

MNOK 30 shareholder loan was converted to equity. In addition, a subsequent offer of MNOK 30 was completed in 1st Quarter 2018.

Summary of the restructuring

Amortization:

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

Interest rates:

• No amendments

Financial covenants:

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

Other covenants

• Change of control:
• 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

Note 16 - Subsequent events

The subsequent events have no material consequense for the accounts per March 31, 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
	1.1 - 31.3	1.1 - 31.3
Total operating income	109 603	136 835
Total operating expenses	(95 918)	(108 614)
EBITDA	13 685	28 221
Ordinary depreciation	(52 860)	(49 615)
Impairment on assets	(33 900)	0
Profit from Joint Ventures	(1 235)	2 477
EBIT	(74 310)	(18 916)

Appendix 3 – Contract status and coverage March 31, 2021:

Condensed statement of comprehensive income last 5 Quarters

Consolidated (NOK 1 000)	2021 Q1	2020 Q4	2020 Q3	2020 Q2	2020 Q1
Operating Income:
Freight income	109 603	100 713	142 721	137 303	129 708
Other income	0	6 237	0	6 950	7 128
Total operating income	109 603	106 950	142 721	144 253	136 835
Operating Expenses:
Personell expenses	65 997	63 672	55 840	79 375	73 943
Other operating expenses	29 920	33 242	27 120	31 784	34 671
Total operating expenses	95 918	96 914	82 960	111 158	108 614
Operating result before depreciations	13 685	10 036	59 762	33 095	28 221
Ordinary depreciation	52 860	52 230	52 540	53 243	49 615
Writedown on assets	33 900	96 738	0	23 941	0
Operating result before other income and expenses
	(73 075)	(138 933)	7 222	(44 089)	(21 394)
Result from JV	(1 235)	(13 816)	3 960	2 174	2 477
Operating result	(74 310)	(152 749)	11 182	(41 915)	(18 916)
Financial Items:
Financial income	2 296	(1 107)	4 088	2 190	110 953
Financial expenses	(19 302)	(15 986)	(20 470)	(34 125)	(48 705)
Net agio (disagio)	(5 057)	141 850	33 302	118 281	(222 433)
Net financial items	(22 064)	124 757	16 921	86 346	(160 185)
Pre-tax result	(96 374)	(27 992)	28 103	44 430	(179 101)
Taxes	0	1 962	233	0	(69)
Result	(96 374)	(26 030)	28 336	44 430	(179 171)
Equity holders of the parent	(90 076)	(43 394)	18 715	27 336	(126 226)
Non-controlling interests	(6 298)	17 364	9 621	17 094	(52 944)
Earnings per share	(1,45)	(0,70)	0,30	0,44	(2,03)
Statement of comprehensive income
Currency translation adjustments - Joint
Ventures	0	0	0	0	(106 712)
Actuarial gain/ loss	0	91	0	0	0
Change in value stocks	9 900	(30 933)	(7 896)	(22 833)	51 762
Comprehensive income	(86 474)	(56 872)	20 440	21 597	(234 120)
Attributalbe to
Controlling interests	(80 176)	(74 236)	10 819	4 503	(181 176)
Non-controlling interests	(6 298)	17 364	9 621	17 094	(52 944)
Total attributed	(86 474)	(56 872)	20 440	21 597	(234 120)

Condensed statement of financial position last 5 Quarters

Consolidated	2021	2020	2020	2020	2020
(NOK 1 000)	Q1	Q4	Q3	Q2	Q1
ASSETS
Fixed assets:
Vessels	1 849 631	1 922 882	2 010 950	2 049 417	2 105 562
Other assets	21 204	21 445	21 921	19 894	20 079
Financial derivatives	0	0	0	0	0
Right-of-use asset	54 032	55 209	57 200	57 598	58 793
Other long-term receivables	66 692	64 455	83 634	88 051	102 031
Pension fund	0	0	127	127	127
Shares in Joint Venture	153 081	154 316	168 132	164 171	161 998
Shares	1 720	1 720	1 720	1 720	1 720
Total fixed assets	2 146 360	2 220 027	2 343 684	2 380 979	2 450 310
Current assets:
Financial investments	0	255 978	284 442	292 338	315 171
Account receivables,	127 857	101 416	139 457	160 417	177 308
Other short-term receivables Financial derivatives	66 309	65 224	72 141	78 947	90 209
C ash and cash equivalents	3 850	25 284	8 733	7 625	0
	551 636	429 183	400 121	374 500	380 546
Total current assets	749 652	877 086	904 895	913 827	963 235
TOTAL ASSETS	2 896 012	3 097 113	3 248 579	3 294 805	3 413 544
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)	(626)	(626)	(626)
Translation differences	0	(9 900)	21 033	28 929	51 762
Retained earnings	321 011	411 087	454 481	435 766	408 430
Total equity majority shareholders	501 488	581 664	655 900	645 081	640 578
Non-controlling interests	(107 443)	(101 145)	(118 509)	(128 130)	(145 224)
Total equity	394 045	480 519	537 391	516 951	495 354
Long-term liabilities:
Financial derivatives	4 499	7 158	22 321	22 321	34 765
Lease liabilities	53 932	54 861	55 870	56 167	57 094
Pension liabilities	236	236	0	0	0
Other long-term liabilities	11 373	11 373	7 702	12 915	0
Interest-bearing debt	2 032 272	2 193 798	2 415 958	2 537 246	2 580 956
Total long-term liabilities	2 102 312	2 267 426	2 501 851	2 628 650	2 672 815
Short-term liabilities:
Interest-bearing debt	259 178	166 596	83 435	9 281	107 262
Financial derivatives	12 519	13 442	21 399	20 488	32 343
Lease liabilities	3 256	3 256	3 256	3 256	3 256
Accounts payable	21 117	48 061	25 171	27 729	21 547
Tax payable	0	0	0	0	0
Other short-term liabilities	103 585	117 813	76 076	88 451	80 969
Total short-term liabilities	399 655	349 168	209 337	149 205	245 376
Total liabilities	2 501 967	2 616 594	2 711 188	2 777 854	2 918 191
TOTAL EQUITY AND LIABILITIES	2 896 012	3 097 113	3 248 579	3 294 805	3 413 544

mr## Your Partner in Shipping