Eidesvik Offshore ASA Report for Q3 2022

Letter from the CEO

We are pleased to report another strong quarter for Eidesvik. The group achieved revenue of more than MNOK 190, which makes it the second consecutive quarter with a level of revenue not seen since 2016.

We see a positive development in fundamental drivers for our various segments. High oil price, steady rig activity forecast , and increasing activity levels in the oil & gas and renewable markets supports a continued high activity for the group. We do however also see increased operating costs, due to high inflation and limitations in supply chains.

We continue to perform well both operationally and commercially. In Q3 we secured multiple long -term contract awards with an estimated value of MNOK 690 . At the end of the quarter, our backlog is MNOK 1 ,486. On the operating side, our vessels continue to deliver solid performance with limited unplanned stops.

Q3 experienced a softening in the spot market. Since all our vessels in operation are, and continue to be, on longer term contracts the changes in the spot market have not materially affected our business. We see a steady improvement in the long -term sentiment for our focus segments PSV, subsea and offshore wind.

For Eidesvik sustainability is a strategic imperative for generating long -term value. Our fleet scores very high on green capabilities, contributing to the recent contract awards at solid pricing. Minimizing our emissions is a priority for us, and together with our partners and customers we continue to explore and invest in new technologies and alternative fuel solutions for our fleet. 

Gitte Gard Talmo CEO & President

The quarter was busy for Eidesvik Offshore ASA and its subsidiaries ("Eidesvik" or the "Group") with multiple long term contract awards. The vessels are performing well, and the Group continue to see financial improvement. Eidesvik generated a consolidated EBITDA of MNOK 91.0, compared to MNOK 81.5 in Q3 2021. The Group secured a backlog of approximately MNOK 690 in this quarter.

The Group were awarded a three-year contract for the PSV Viking Prince. The contract was awarded under the current frame agreement with AkerBP ASA. The contract will commence after completion of the vessel's ongoing contract with Equinor.

Eidesvik was also awarded a five-year contract with Van Oord Offshore Wind B.V. for Subsea Viking. The new contract will commence in Q1 2023.

The Group further signed a ship management agreement for two years with DEME for the construction support vessel Viking Neptun. As previously announced, Eidesvik have entered into an agreement with DEME about the sale of Viking Neptun, the sale is expected to be completed before end Q4 2022.

With the award in October of a three-year firm contract with Equinor for Viking Avant and extension of the contract for Viking Princess by Wintershall DEA, the Group continue to see very high activity and interest in its PSVs, subsea and offshore wind vessels.

The seismic fleet are all in lay up at the end of Q3. Seismic is not a focus area of investment for Eidesvik going forward.

Key financials1

(NOK 1 000)	2022	2021	2022	2021
	1.7 - 30.9	1.7 - 30.9	1.1 - 30.9	1.1 - 30.9
Operating income	190 434	174 818	484 644	442 050
EBITDA	90 955	81 497	171 479	148 377
EBITDA margin	48 %	47 %	35 %	34 %

		30.09.2022 31.12.2021
Equity	573 478	521 098
Equity ratio	19 %	19 %
Cash end equivalents	210 402	330 401
Net interest-bearing debt*	1 955 894	1 695 571

1 Including IFRS 16. Liabilities related to Assets held for sale will become due and payable at the time of completion of the sale.

Operational update

HSEQ

The safety of employees and operations constitute the foundation of all activities in Eidesvik. The Group have had zero lost time incident (LTI) YTD, continuing the good track record from the year before which also had zero LTIs. The Group reported TRCF (Total Recordable Case Frequency) of 0.592 in Q3 2022. This is in line with the reported TRCF for last year (0.46), which was an all-time low for Eidesvik. The recordable incident was one restricted work case. Eidesvik are continuing the focus towards a negative trend related to first aid accidents.

Operations

All vessels within the PSV segment and offshore wind/subsea were on contract the whole quarter. The overall utilization in Q3 2022 for the fleet was 95% (98% Q3 2021).

The PSV segment experienced an utilization of 96% in Q3 2022 (98%). Viking Princess was in docking for her class renewal during the quarter.

For the subsea and offshore wind vessels, the utilization was 98% (99%).

Veritas Viking completed its bareboat contract medio September. At the end of the quarter, all of the seismic vessels were in layup.

Financial summary

Revenue for Q3 2022 was MNOK 190.4 compared to MNOK 174.8 in Q3 2021 with an EBITDA margin of 47.8% compared to 46.6% in Q3 2021.

The revenue and EBITDA are higher compared to last year due to higher day rates. Revenue and EBITDA YTD 2022 was MNOK 484.6 (MNOK 442.1) and MNOK 171.5 (MNOK 148.4).

Operating expenses for the quarter were MNOK 99.5 compared to MNOK 93.3 driven by increased crew cost due to reintroduction of ceiling on the net salary scheme for seamen and general cost

² The number of Total Reportable Cases per million Exposure Hours worked during the period (excluding first aid).

increase. Operating expenses YTD 2022 were MNOK 313.2 (MNOK 293.7).

Q3 depreciation was MNOK 35.1 (MNOK 52.1). The lower number is due to vessels held for sale not being depreciated. YTD depreciation was MNOK 102.4 (MNOK 157.7).

Eidesvik reversed net MNOK 209.2 of previously impaired asset values in the quarter due to improved market fundamentals.

This together with improved pricing and reduced depreciation contributed to the operating profit before other income and expenses of MNOK 265.1 (MNOK 1.1). YTD operating profit was MNOK 278.3 (MNOK -71.5).

The joint ventures had a loss of MNOK 2.3 for the quarter (MNOK -0.1). YTD the loss was MNOK 6.0 (MNOK -2.8). The increased loss is mainly due to increased interest cost and increase in crew cost due to the reintroduction of the ceiling on the net salary scheme for seamen.

Due to the development in interest rates, there is a financial income on the interest hedges of MNOK 20.6 (MNOK 2.1) and MNOK 64.7 (MNOK 6.6) during the quarter and YTD. The increase in financial expensesin the quarter to MNOK 21.5 (MNOK 14.4) is due to increased interest rates.

The currency loss of MNOK 99.1 (MNOK 23.4) is mainly unrealized and due to the development of NOK vs USD and because a portion of the debt is in USD. The majority of this debt is related to the vessel Viking Neptun which is sold and where the transaction is scheduled to be completed in Q4. The sales price is also in USD.

Profit after tax for Q3 and YTD ended at MNOK 162.8 (MNOK 34.7) and MNOK 52.4 (MNOK -153.4) respectively.

Balance sheet and liquidity Q3 2022

Total current assets per September 30, 2022 were MNOK 521.3 (MNOK 531.2 per December 31, 2021), and cash balance was MNOK 210.4 (MNOK 330.4), where MNOK 45.5 is restricted cash and funding restricted for use towards the ShipFC ammonia project. Ship FC is Eidesvik's joint development project with Equinor and Wärtsilä among others for the development of green ammonia as a fuel source.

Assets held for sale in Q3 was MNOK 1,006.7 (MNOK 1,022.5 on December 31, 2021).

Fixed assets were MNOK 1,420.1 at September 30, 2022 compared to MNOK 1,196.9 at year end 2021. The increase is due to the above-mentioned reversal of impairment.

Equity on September 30, 2022, was MNOK 573.5 (MNOK 521.1 on December 31, 2021), i.e., an equity ratio of 19.5% (18.9%).

Net interest-bearing debt on September 30, 2022, was MNOK 1,955.9 (MNOK 1,695.6 on December 30, 2021). The increase is a result of the effect from USD appreciation against NOK. Installments have been made on the long term debt.

Cash flow from operating activities per September 30, 2022, amounted to MNOK 101.7 (MNOK 66.1 per September 30, 2021).

Cash flow from investment activities per September 30, 2022, was MNOK -46.3 (MNOK 277.2 per September 30, 2021). This is due to capex related to docking of vessels.

Cash flow from financing activities per September 30, 2022, of MNOK -175.3 (MNOK -488.6 per September 30, 2021) consisted of payments of interest and installments on secured debt.

Market and future outlook

PSV market

The general activity level for PSV's in the North Sea has been good throughout this quarter with high utilisation levels. Several long term tenders have been concluded at sound rate levels and we expect continued tightening of the supply and demand balance going forward, especially for large PSVs (900+m2) equipped with environmental friendly technology.

The spot market was volatile with high day rates seen the first months of the quarter, before softening in Norwegian sector in September. The seasonal volatility in the spot market have little impact on our forward looking view on this segment. The fundamental activity drivers for this segment are robust and we foresee healthy growth going forward for the segment.

Subsea and offshore wind markets

The subsea segment experienced increased dayrates and utilization levels year on year with several long-term contracts concluded globally. We expect this segment to be able to obtain premium rates going forward.

The offshore wind segment continued with high tonnage demand throughout Q3, however it was mainly short to medium term vessel requirements. As the O&G market is ramping up activity, the subsea fleet, which has taken on work scopes in the offshore wind market, will return to their conventional market. In addition, the EU capacity targets for offshore wind continues to increase, and we expect the combination of the ramp up in O&G activity in combination with increasing EU offshore wind capacity targets, will most likely lead to a shortage in available service vessels in this segment. Even with the increasing number of new builds contracted on speculation, we believe the supply and demand balance for SOVs will be increasingly favorable for the asset owners in a medium to long term perspective.

Seismic market

We have seen increased tender activities for source vessels indicating that the activity level is increasing for this segment as well.

Subsequent events

Eidesvik has been awarded a 3-year contract with Equinor Energy AS ("Equinor") for the PSV Viking Avant. The contract will commence in direct continuation of the current contract in December 2022. In addition, Equinor has been granted options for further extensions. Furthermore Wintershall Dea has declared an option to extend their contract for PSV Viking Princess till June 2023.

Bømlo, November 15, 2022

Arne Austreid Borgny Eidesvik Lars Eidesvik John Egil Stangeland Chair of the Board Board Member Board Member Board Member Kristine Elisabeth Skeie Lauritz Eidesvik Bjørg Marit Eknes Johnny Olson Board Member Board Member Board Member Board Member

Gitte Gard Talmo CEO

Condensed statement of comprehensive income

(NOK 1 000)

	2022	2021	2022	2021
	1.7 - 30.9	1.7 - 30.9	1.1 - 30.9	1.1 - 30.9
Operating Income
Freight income	186 498	167 723	474 136	431 151
Other income (note 4)	3 936	7 095	10 509	10 898

Total operating income	190 434	174 818	484 644	442 050

Operating Expenses
Personnel expenses	69 307	63 573	218 818	201 582
Other operating expenses	30 172	29 749	94 348	92 091

Total operating expenses	99 479	93 321	313 166	293 673

Operating result before depreciations	90 955	81 497	171 479	148 377

Ordinary depreciation	35 069	52 145	102 381	157 711
Impairment on assets/reversal impairment (note 6, 7)	(209 237)	28 295	(209 237)	62 195


Operating result before other income and expenses	265 123	1 057	278 335	(71 530)

Result from Joint Ventures and associated	(2 258)	(90)	(6 047)	(2 842)
companies

Operating result	262 866	967	272 288	(74 372)

Financial Items (note 11)
Financial income	20 640	2 087	64 675	6 609
Financial expenses	(21 493)	(14 373)	(67 469)	(51 237)
Net agio (disagio)	(99 142)	(23 380)	(217 067)	(34 351)

Net financial items	(99 994)	(35 666)	(219 860)	(78 980)
Pre-tax result	162 871	(34 699)	52 428	(153 352)

Taxes	(49)	0	(49)	0

Result	162 823	(34 699)	52 380	(153 352)

Attributable to
Equity holders of the parent	174 346	(22 517)	81 738	(146 240)
Non-controlling interests	(11 523)	(1 053)	(29 358)	(7 112)

Earnings per share	2,81	(0,54)	1,32	(2,35)



Profit	162 823	(34 699)	52 380	(153 352)
Change in value stocks Comprehensive income	0 162 823	0 (34 699)	0 52 380	9 900 (143 452)

Attributable to
Equity holders of the parent	174 346	(33 646)	81 738	(136 340)
Non-controlling interests	(11 523)	(1 053)	(29 358)	(7 112)
Total attributed	162 823	(34 699)	52 380	(143 452)

Condensed statement of financial position

(NOK 1 000)

	30.09.2022	31.12.2021
ASSETS
Fixed assets:
Vessels (note 6, 7)	1 116 790	908 507
Other assets (note 7)	18 198	20 524
Financial derivatives	40 461	15 791
Right-of-use asset	53 994	50 502
Other long-term receivables	46 323	51 178
Pension fund
	282	282
Shares in Joint Ventures (note 10)	141 478	147 525
Shares (note 10)	2 595	2 595
Total fixed assets	1 420 121	1 196 904

Current assets:
Account receivables, freight income	211 738	130 942
Other short-term receivables	69 743	68 265
Financial derivatives	29 372	1 613
Cash and cash equivalents	210 402	330 401
Total current assets	521 255	531 220

Assets held for sale
Assets held for sale (note 7)	1 006 702	1 022 459
Total assets held for sale	1 006 702	1 022 459

TOTAL ASSETS	2 948 079	2 750 583

EQUITY AND LIABILITIES
Equity
Equity attributable to the company's
shareholders:
Share capital	3 108	3 108
Premium fund	177 275	177 275
Other paid-in equity	629	629
Other comprehensive income	-590	-590
Retained earnings	419 850	338 112
Total equity majority shareholders	600 272	518 534

Non-controlling interests	-26 794	2 565
Total equity	573 478	521 098

Long-term liabilities:
Lease liabilities (note 12)	52 217	51 147
Interest-bearing debt (note 12)	1 089 764	1 044 199
Total long-term liabilities	1 141 981	1 095 346

Short-term liabilities:
Interest-bearing debt (note 12)	73 587	94 379
Financial derivatives	1 377	6 677
Lease liabilities (note 12)	4 217	3 256
Accounts payable	42 924	48 234
Other short-term liabilities	156 087	140 929
Total short-term liabilities	278 191	293 474

Liabilities related to Assets held for sale	954 428	840 666
Total liabilities, Assets held for sale	954 428	840 666

Total liabilities	2 374 601	2 229 485

TOTAL EQUITY AND LIABILITIES	2 948 079	2 750 583

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 01.01.2022	3 108	177 275	-590	629	0	338 111	518 534	2 565	521 098
Result in the period	0	0	0	0	0	81 738	81 738	-29 358	52 380
Equity as at 30.09.2022	3 108	177 275	-590	629	0	419 849	600 272	-26 794	573 478
	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
Profit in the period	0	0	0	0	0	-146 239	-146 239	-7 112	-153 351
Other adjustments	0	0	0	0	9 900	0	9 900	0	9 900
Change in non-controlling interests *	0	0	0	0	0	-57 230	-57 230	57 230	0
Equity as at 30.09.2021	3 108	177 275	-535	629	0	207 618	388 095	-51 026	337 065

* As of September 1, 2021, Eidesvik bought 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

(condensed)

	1.1 - 30.9	1.1 - 30.9
	2022	2021
Net cash flow from operations excl. taxes	101 791	66 228
Paid taxes	(135)	(128)
Cash flow from operating activity	101 656	66 100

Sale of fixed assets	0	23 750
Sale of other investments	0	258 681
Payment of long-term receivables (instalments and interests)	36 675	30 340
Purchase of fixed operating assets	(83 014)	(35 589)
Cash flow from investment activity	(46 339)	277 181

Instalment financial lease	(3 134)	(2 786)
Repayment of debt	(105 321)	(420 514)
Paid interest	(66 860)	(65 296)
Cash flow from finance activity	(175 315)	(488 595)

Changes in cash holdings	(119 998)	(145 314)
Liquid assets at the beginning of the period	330 401	429 183
Liquid assets at the end of the period	210 402	283 869

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 International Financing Reporting Standards as adopted by the European Union ("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 2021.

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

Note 2 – Financial 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.

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. The share of loans with interest swap, interest cap or fixed interest is 69% for NOK loans and 77% for USD loans per September 30, 2022.

The liquidity position is assessed as satisfactory for the next 12 months considering the expected improved liquidity position after completion of the sale of Viking Neptun.

For further information, reference is made to the 2021 annual accounts Note 3.

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 reversal of previous write-down of paid installments on receivables from Oceanic Seismic Vessels AS. See Note 5 in the Annual Accounts for 2021 for further details.

Note 5 - Estimates

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

Note 6 – Impairment/reversal of impairment

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 improved market conditions and increase in market interest rates, the vessels' book values have been tested for impairment and reversal of previous impairments per September 30, 2022.

Based on these tests, Eidesvik has recognized a net reversal of impairment of MNOK 209.2 in 3Q 2022. Of this, MNOK 36.6 is related to reversal of impairment of one subsea/offshore wind vessel, and MNOK 188.6 is related to reversal of impairments of five PSVs. In addition, one seismic vessel is impaired with MNOK 16.0 in the quarter.

The Group monitors the presence of impairment indicators during the periodical financial reporting, and thus may update its assessments of impairments to reflect further changes in the underlying market assumptions. Broker estimates are not used as an approximate sales value on the balance sheet date as there are few observed sales of the type of vessels the Group 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 September 30, 2022, is 10.1%. 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 Q3 2022 are based on and reconciled against the financial forecasts which the Group uses for internal planning purposes as well as present to its lenders. Important elements in estimated cash flows are the long-term inflation rate, the contract situation (order backlog), the utilisation rate, ordinary operating expenses, periodic maintenance (docking), charter rates, and exchange rates.

Climate risk

Eidesvik is considered to be exposed to climate related risks which can affect the future cash flow estimates. Climate changes as harder weather and increasing sea level are considered to have low effect as Eidesvik's vessels are built for a rough climate. Both CO2-taxes and the transition from fossil energy towards renewable increases the risk for the Eidesvik fleet.

Eidesvik is a pioneer in adoption of new technologies that reduces emissions, and has multiple world records of being the first to adopt new technologies. Please read Eidesvik's ESG report for information of the many major emission reducing projects that Eidesvik is part of (available on the Group's website). Eidesvik operates 11 vessels with batteries and hybrid solutions, out of total 12 vessels in operation. In the impairment assessment, climate risk effects are including in the forecasted cash flow estimates.

For further information about the tests and other estimates, reference is made to the 2021 annual accounts Note 12.

			Operating	Total other		Periodic
(NOK thousands)	Property	Port facilities	equipment	fixed assets	Vessels	maintenance	Total vessels
Acquisition cost
January 1, 2022	37 414	3 594	42 559	83 567	5 890 541	359 633	6 250 174
Addition	0	0	0	0	36 863	44 610	81 473
September 30, 2022	37 414	3 594	40 195	81 203	5 927 404	404 243	6 331 647
Accumulated depreciation and impairments
January 1, 2022	19 624	3 494	39 926	63 044	4 034 132	285 076	4 319 208
Depreciation in the year	135	0	84	220	61 774	36 378	98 152
Impairment / reversal impairment (-) for the year	0	0	0	0	-209 237	0	-209 237
Disposals	0	0	-226	-226	0	0	0
September 30, 2022	19 759	3 494	39 784	63 037	3 886 669	321 454	4 208 122
Book value	17 655	100	411	18 165	2 040 736	82 789	2 123 524

Note 7 - Fixed assets

Eidesvik entered into a Memorandum of Agreement for the sale of Viking Neptun in Q1 2022, with expected delivery in Q4 2022. The asset is classified as held-for-sale in the Consolidated statement of Financial Position. Further two seismic vessels are classified as held-for-sale.

Note 8 - Long-term debt drawn

No new long-term debt was drawn during Q3 2022. The Group's debt was refinanced in Q3 2021 with final maturity December 31, 2023. The Group is in line with all covenants.

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 straight-line basis. There is no Time Charter revenue when the vessels are off-hire.

Operation segment		Seismic		Subsea/Wind		Supply		Other		Total
			1.7- 30.9 2022 1.7- 30.9 2021 1.7- 30.9 2022 1.7- 30.9 2021 1.7- 30.9 2022 1.7- 30.9 2021 1.7- 30.9 2022 1.7- 30.9 2021 1.7- 30.9 2022 1.7- 30.9 2021

Segment result
Operating income	0	0	36 502	37 971	48 503	45 469	5 982	4 917	90 987	88 357
Bareboat income	10 544	12 299	55 585	52 720	33 318	22 525	0	0	99 447	87 544
Operating income share from JV*	0	0	9 633	8 947	0	0	0	0	9 633	8 947
Bareboat income from JV*	0	0	3 939	4 082	0	0	0	0	3 939	4 082
Total operating income	10 544	12 299	105 659	103 720	81 821	67 994	5 982	4 917	204 006	188 930
Operating expenses	2 993	2 810	37 185	41 967	51 415	43 728	7 886	5 900	99 479	94 405
Operating expenses share from JV*	0	0	9 338	7 968	0	0	0	0	9 338	7 968
Total operating expenses	2 993	2 810	46 523	49 935	51 415	43 728	7 886	5 900	108 817	102 373

Depreciations	3 669	8 854	10 038	22 161	19 882	19 781	1 481	1 349	35 069	52 145
Depreciations share from JV*	0	0	4 731	4 756	0	0	0	0	4 731	4 756
Impairment on assets / reversal impairment	16 053	0	-36 564	28 295	-188 726	0	0	0	-209 237	28 295
Impairment on assets share from JV*	0	0	0	0	0	0	0	0	0	0
Total depreciations/writedown on assets	19 722	8 854	-21 795	55 212	-168 844	19 781	1 481	1 349	-169 437	85 196

Operating profit incl. share from JV*	-12 171	635	80 930	-1 427	199 250	4 485	-3 385	-2 332	264 625	1 361
Net finance and taxes from JV*	0	0	-1 760	-1 269	0	0	0	0	-1 760	-1 269
Writedown JV	0	0	0	0	0	0	0	0	0	0
Profit from associated companies	0	0	0	0	0	0	0	874	0	874
Operating profit	-12 171	635	79 170	-2 696	199 250	4 485	-3 385	-1 458	262 866	967

Number of ships at end of period (incl. JV)	4	4	4	4	6	6			14	14

Operation segment		Seismic		Subsea/Wind		Supply		Other		Total

			1.1.- 30.9 2022 1.1.- 30.9 2021 1.1.- 30.9 2022 1.1.- 30.9 2021 1.1.- 30.9 2022 1.1.- 30.9 2021 1.1.- 30.9 2022 1.1.- 30.9 2021 1.1.- 30.9 2022 1.1.- 30.9 2021

Segment result
Operating income	0	0	91 070	102 866	144 278	131 870	16 512	14 055	251 860	248 792
Bareboat income	25 453	15 546	129 242	116 799	78 090	61 996	0	0	232 785	194 340
Operating income share from JV*	0	0	28 321	26 717	0	0	0	0	28 321	26 717
Bareboat income from JV*	0	0	11 700	12 114	0	0	0	0	11 700	12 114
Total operating income	25 453	15 546	260 333	258 496	222 368	193 866	16 512	14 055	524 666	481 963

Operating expenses	14 953	10 566	112 018	113 539	152 096	138 268	34 098	32 382	313 165	294 755
Operating expenses share from JV*	0	0	27 215	24 458	0	0	0	0	27 215	24 458
Total operating expenses	14 953	10 566	139 233	137 997	152 096	138 268	34 098	32 382	340 380	319 213

Depreciations	11 007	28 070	27 714	64 535	59 431	60 920	4 229	4 186	102 381	157 711
Depreciations share from JV*	0	0	14 193	13 890	0	0	0	0	14 193	13 890
Impairment on assets / reversal impairment	16 053	33 900	-36 564	28 295	-188 726	0	0	0	-209 237	62 195
Impairment on assets share from JV*	0	0	0	0	0	0	0	0	0	0
Total depreciations/writedown on assets	27 060	61 970	5 343	106 720	-129 295	60 920	4 229	4 186	-92 663	233 796

Operating result incl. share from JV*	-16 560	-56 990	115 757	13 778	199 567	-5 322	-21 815	-22 513	276 949	-71 047
Net finance and taxes from JV*	0	0	-4 660	-4 199	0	0	0	0	-4 660	-4 199
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	0	874	0	874
Operating result	-16 560	-56 990	111 097	9 579	199 567	-5 322	-21 815	-21 639	272 288	-74 372

Number of vessels at end of period (incl. JV)	4	4	4	4	6	6			14	14

* 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 September 30, 2022, of the individual joint venture companies:
Company	Assets	Liability	Equity	Revenues			Profit Ownership Book value	Result portion
Eidesvik Seven AS	518 558	269 617	248 940	23 400	-15 373	50 %	124 470	-7 687
Eidesvik Seven Chartering AS	68 970	34 954	34 016	80 042	3 401	50 %	17 008	1 640
Profit from Joint Ventures							141 478	(6 047)

Summarized financial information per September 30, 2021 of the individual joint ventures companies:

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)

Summarized financial information per September 30, 2022, of the individual associated companies:

Company	Ownership	Book value	Result
	/ voting	30.09.2022	portion
	share
Bleivik Eiendom AS	23 %	2 595	0
Eidesvik Ghana Ltd.	49 %	0	0
Profit from associated companies		2 595	0

Summarized financial information per September 30, 2021 of the individual associated companies:
Company	Ownership / voting	Book value 30.09.2021	Result portion
	share
Bleivik Eiendom AS	23 %	2 595	1 940
Eidesvik Ghana Ltd.	49 %	0	-1 065

Profit from associated companies 2 595 874

Note 11 - Financial items

	1.7 - 30.9	1.7 - 30.9	1.1 - 30.9	1.1 - 30.9	1.1 - 31.12
	2022	2021	2022	2021	2021
Financial income	2 574	2 087	9 593	6 608	10 502
Impairment long-term receivables	3 528	4 482	7 247	6 151	7 366
Other interest and financial expenses	(24 316)	(18 608)	(71 624)	(55 738)	(73 568)
Interest cost - lease liabilities	(705)	(721)	(3 091)	(2 164)	(2 885)
Change in market value on interest instruments	18 066	474	55 082	514	18 282
Realized agio on foreign exchange contracts	398	958	1 274	2 485	4 377
Realized agio - others	(2 125)	(17 448)	(9 830)	(22 154)	(22 043)
Unrealized agio - on foreign exchange contracts	(6 472)	(1 205)	(1 342)	(4 672)	(5 721)
Unrealized agio - loans	(90 943)	(5 685)	(207 169)	(10 010)	(14 222)
Net financial items	(99 994)	(35 666)	(219 860)	(78 980)	(77 912)

During 3Q 2022 currency exchange fluctuations resulted in unrealized disagio (loss) of MNOK -97.4. The USD continued to strengthen towards NOK in Q3, affecting the debt in USD. The debt in USD will be significantly reduced after delivery of Viking Neptun in Q4 2022.

Note 12 - Net interest-bearing debt

		30.09.2022 30.09.2021 31.12.2021
Short-term interest-bearing debt	73 587	88 180	94 379
Accrued interests	(7 918)	(3 607)	(7 674)
Liabilities related to Assets held for sale	954 428	0	840 666
1st year installment on long-term interest-bearing debt	1 020 097	84 573	927 371
Short-term lease liabilities (IFRS 16)	4 217	3 256	3 256
Short-term interest-bearing debt	1 024 314	87 829	930 626

Long-term interest-bearing debt	1 089 764	1 881 605	1 044 199
Long-term lease liabilities (IFRS 16)	52 217	52 075	51 147
Long-term interest-bearing debt	1 141 981	1 933 680	1 095 346

Total interest-bearing debt	2 166 296	2 021 509	2 025 972


Cash and cash equivalents	(210 402)	(283 869)	(330 401)
Net interest-bearing debt	1 955 894	1 737 640	1 695 571

Note 13 - Related-party transactions

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 material related-party transactions have been conducted. Reference is made to the 2021 annual accounts Note 24.

Note 14 - Shareholders

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

20 largest shareholders per September 30, 2022:

Name	Stake	Country
EIDESVIK INVEST AS	59,86 %	NORWAY
JAKOB HATTELAND HOLDING AS	4,93 %	NORWAY
VINGTOR INVEST AS	2,31 %	NORWAY
HELGØ FORVALTNING	2,09 %	NORWAY
STANGELAND HOLDING AS	1,76 %	NORWAY
BERGTOR INVESTERING AS	1,76 %	NORWAY
DUNVOLD INVEST AS	1,35 %	NORWAY
SKANDINAVISKA ENSKILDA BANKEN AB	1,28 %	SWEDEN
SILBERG, JOHNNY	0,97 %	NORWAY
HELGØ INVEST AS	0,80 %	NORWAY
HELLAND AS	0,76 %	NORWAY
TVEITÅ, EINAR KRISTIAN	0,71 %	NORWAY
CAIANO SHIP AS	0,60 %	NORWAY
CALIFORNIA INVEST AS	0,58 %	NORWAY
KILSHOLMEN AS	0,50 %	NORWAY
OLAVS HOLDING AS	0,47 %	NORWAY
DNB BANK ASA	0,42 %	SWEDEN
LGJ INVEST AS	0,40 %	NORWAY
HANNESTAD, KARL CHRISTIAN	0,37 %	NORWAY
BJØRKEHAGEN AS	0,36 %	NORWAY

Note 15 - Subsequent events

No events have occurred after the balance sheet date with significant impact on the interim financial statements for Q3 2022.

In October Eidesvik was awarded a contract with Equinor for three years plus potential options for the vessel Viking Avant. Furthermore Wintershall Dea has declared an option to extend their contract for PSV Viking Princess till July 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 insightinto 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 13.
EBITDA: Operating result (earnings) before depreciation, impairment, amortization, 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.
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.

	2022	2021
	1.7 - 30.9	1.7 - 30.9
Total operating income	190 434	174 818
Total operating expenses	(99 479)	(93 321)
EBITDA	90 955	81 497

Ordinary depreciation	(35 069)	(52 145)
Impairment on assets	209 237	(28 295)

Profit from Joint Ventures	(2 258)	(90)

EBIT	262 866	967

*Liabilities related to Assets held for sale will become due and payable at the time of completion of the sale.

Appendix 3 – Contract status and coverage September 30, 2022:

Condensed statement of comprehensive income last 5 Quarters

Consolidated	2022	2022	2022	2021	2021
(NOK 1 000)	Q3	Q2	Q1	Q4	Q3
Operating Income:
Freight income	186 498	181 092	106 546	138 330	167 723
Other income	3 936	4 036	2 537	7 419	7 095
Total operating income
	190 434	185 128	109 083	145 749	174 818
Operating Expenses:
Personell expenses	69 307	75 632	73 879	71 490	63 573
Other operating expenses	30 172	34 349	29 827	43 923	29 749

Total operating expenses	99 479	109 981	103 706	115 413	93 321
Operating result before depreciations	90 955	75 147	5 376	30 335	81 497
	48 %	41 %	5 %	21 %	47 %
Ordinary depreciation	35 069	35 115	32 196	50 249	52 145
Writedown on assets	(209 237)	0	0	(205 992)	28 295

Operating result before other income and expenses	265 123	40 032	(26 820)	186 078	1 057

Result from Joint Ventures and associated	(2 258)	(1 187)	(2 603)	(3 074)	(90)
companies
Operating result	262 866	38 845	(29 423)	183 005	967

Financial Items:
Financial income	20 640	17 285	26 750	3 893	2 087
Financial expenses	(21 493)	(30 437)	(15 539)	432	(14 373)
Net agio (disagio)	(99 142)	(126 557)	8 632	(3 258)	(23 380)
Net financial items	(99 994)	(139 709)	19 843	1 067	(35 666)

Pre-tax result	162 871	(100 863)	(9 580)	184 072	(34 699)
Taxes	(49)	0	0	16	0

Result	162 823	(100 863)	(9 580)	184 088	(34 699)


Equity holders of the parent	174 346	(79 511)	(13 097)	130 494	(33 646)
Non-controlling interests	(11 523)	(21 353)	3 517	53 595	(1 053)
Earnings per share	2,81	(1,28)	(0,21)	2,10	(0,54)

Statement of comprehensive income
Actuarial gain/ loss	0	0	0	(55)	0
Comprehensive income
	162 823	(100 863)	(9 580)	184 033	(34 699)
Attributalbe to
Controlling interests	174 346	(79 511)	(13 097)	130 438	(33 646)
Non-controlling interests	(11 523)	(21 353)	3 517	53 595	(1 053)

Total attributed	162 823	(100 863)	(9 580)	184 033	(34 699)

Condensed statement of financial position last 5 Quarters

Consolidated	2022	2022	2022	2021	2021
(NOK 1 000)	Q3	Q2	Q1	Q4	Q3
ASSETS
Fixed assets:
Vessels	1 116 790	925 095	954 329	908 507	1 729 361
Other assets Financial derivatives	18 198	18 252	18 428	20 524	20 820
Right-of-use asset	40 461	32 019	33 587	15 791	0
	53 994	55 422	56 774	50 502	51 679
Other long-term receivables Pension fund	46 323 282	48 653 282	46 357 282	51 178 282	54 615 0
Shares in Joint Venture	141 478	143 736	144 922	147 525	150 599
Shares	2 595	2 595	2 595	2 595	2 595

Total fixed assets	1 420 121	1 226 052	1 257 273	1 196 904	2 009 668
Current assets:
Account receivables,	211 738	191 791	127 981	130 942	173 154
Other short-term receivables	69 743	51 908	58 138	68 265	43 309
Financial derivatives	29 372	24 499	6 047	1 613	1 411
C ash and cash equivalents	210 402	157 277	203 187	330 401	283 869
Total current assets	521 255	425 475	395 353	531 220	501 742
Assets held for sale:
Assets held for sale	1 006 702	1 022 755	1 022 459	1 022 459	0
Total assets held for sale	1 006 702	1 022 755	1 022 459	1 022 459	0

TOTAL ASSETS	2 948 079	2 674 283	2 675 085	2 750 583	2 511 411
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	(590)	(590)	(590)	(590)	(535)
Translation differences	0	0	0	0	0
Retained earnings	419 850	245 504	325 015	338 112	207 618
Total equity majority shareholders	600 272	425 926	505 437	518 534	388 095
Non-controlling interests	(26 794)	(15 271)	6 082	2 565	(51 030)
Total equity	573 478	410 655	511 518	521 098	337 065

Long-term liabilities:
Financial derivatives	0	0	0	0	2 341
Lease liabilities
Pension liabilities	52 217	53 361	58 633	51 147	52 075
	0	0	0	0	236
Other long-term liabilities	0	0	0	0	10 549
Interest-bearing debt	1 089 764	1 070 558	1 040 365	1 044 199	1 881 605
Total long-term liabilities	1 141 981	1 123 919	1 098 998	1 095 346	1 946 805

Short-term liabilities:
Interest-bearing debt Financial derivatives	73 587	65 395	78 036	94 379	88 180
Lease liabilities	1 377 4 217	122 4 217	2 402 3 256	6 677 3 256	8 680 3 256
Accounts payable	42 924	31 190	57 070	48 234	35 005
Other short-term liabilities	156 087	129 036	117 859	140 929	92 419
Total short-term liabilities	278 191	229 959	258 623	293 474	227 540

Liabilities related to Assets held for sale	954 428	909 749	805 946	840 666	0
Total liabilities, Assets held for sale	954 428	909 749	805 946	840 666	0
Total liabilities	2 374 601	2 263 628	2 163 566	2 229 485	2 174 346
TOTAL EQUITY AND LIABILITIES	2 948 079	2 674 283	2 675 085	2 750 583	2 511 411

mr## Your Partner in Shipping