Solstad Offshore ASA — Interim / Quarterly Report 2021

Nov 26, 2021

3Q 2021 Presentation

Lars Peder Solstad, CEO and Kjetil Ramstad, CFO

26.11.2021 1

Disclaimer

Important information

Cautionary note regarding forward-looking statements

This presentation, prepared by Solstad Offshore ASA (the "Company"), may include forward-looking statements relating to the business, financial performance and results of the Solstad Offshore Group and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. Any forward-looking statements contained in this presentation, including assumptions, opinions and views of the Company or cited from third party sources, reflect the current views with respect to future events and are subject to material risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. None of the Company or any of its subsidiary undertakings or any such person's officers or employees provide any assurance as to the correctness of such forward-looking information and statements.

The Company assumes no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.

3Q 2021 Financial Highlights

1	Revenue	NOK 1,500M (NOK 1,316M)	NOK 5,000M backlog (NOK 6,100M)
2	EBITDA Adj.	NOK 500M (NOK 395M)	33% EBITDA margin (30%)
3	EBIT	NOK 152M (NOK -823M)	10% EBIT margin (-63%)
4	Assets	NOK 21,361M Fixed Assets (NOK 23,779M)	NOK 2,343M Cash (NOK 1,054M)
5	Equity & Liabilities	NOK 19,440M NIBD (NOK 31,392M)	NOK 3,414M Equity (NOK -8,012M)

*3Q2020 in brackets

Business Update

Focus on operational and commercial excellence as the market starts to improve.

Company owns and operates one of the largest high-end offshore fleet in the world. In the quarter, in average, 81 vessels was operational with an average utilization of 89% (86%).

Launched Windstaller Alliance together with Aker Solutions and DeepOcean to further strengthen our position within offshore wind.

Company has booked approximately MNOK 2,000 of new backlog in the quarter and MNOK 550 after the quarter end.

COVID-19 pandemic continue to affect the operations and approximately MNOK 30 in additional Opex is booked in the quarter.

Fleet update 3Q 2021

The core-fleet of Solstad consist of 90 vessels serving Clients within Oil & Gas and Offshorewind, globally.

2

Number of active vessels, at the end of the quarter: 81 Vessels in lay-up: 12

The Company has sold 24 non-strategic vessels in 2021.

4 vessels sold during 3Q 2021, with further 10 more vessels sold after quarter end. 12 vessels held for sale.

Solstad continue to upgrade the core fleet by investing in tecnology that reduces emissions, such as battery-hybrid systems and shore-power connections.

Market Update

The global demand for offshore vessels continue to improve and Solstad achieved 89% utilization on its fleet in the quarter.

A record-high new back-log of NOK 2,000M has been booked in the quarter, at improving terms.

A continued high tendering activity from oil & gas and from offshore-wind activities.

Improved utilization are normally followed by improved rate-levels.

Backlog

0 PSV 500 1 000 1 500 2 000 2 500 3 000 2021 2022 2023 2024 2025 2026 MNOK Backlog per year per segment AHTS PSV CSV (RE) CSV (O&G)

Backlog has been booked in all vessel segments and main geographical areas, as the markets continue to improve.

AHTS PSV CSV (RE) CSV (O&G)

9%

38%

9%

AHTS (RE) CSV

CSV (RE)

CSV (RE)

(O&G)

(O&G)

segment

CSV AHTS

17%

22%

38%

31%

Backlog per Backlog per segment

100 %

AHTS

PSV

Backlog next 12 months

Next 12 months 13 months ->

Combination of a comfortable contract coverage and available capacity when approaching an improved market.

In 3Q 2021 the Company has booked approx. MNOK 2,000 of new backlog

Income Statement

	2021	2020	2021	2020
	01.07-30.09	01.07-30.09	01.01-30.09	01.01-30.09
Operating income	1,500	1,316	4,101	3,851
Vessel operating expenses	(928)	(867)	(2,629)	(2,609)
Administrative expenses	(97)	(82)	(313)	(273)
Total operating expenses	(1,025)	(949)	(2,941)	(2,882)
Operating result before depreciations	475	367	1,160	969
Ordinary depreciation	(315)	(328)	(952)	(1,073)
Impairment	-	(862)	(45)	(1,823)
Net gain/ loss on sale of assets	(8)	0	(28)	(29)
Operating result	152	(823)	135	(1,955)
Result Joint Ventures		4 6	(3)	33
Result associated companies	(0)	9	0	28
Total other items		4 14	(3)	61
Net financing	(299)	(336)	(844)	(2,292)
Ordinary result before taxes	(144)	(1,144)	(712)	(4,186)
Taxes ordinary result	(5)	(3)	(17)	(16)
RESULT	(148)	(1,148)	(728)	(4,202)
EBITDA adjusted	500	395	1,241	1,089

Balance Sheet

	2021	2020
	3Q	3Q
ASSETS
Fixed Assets
Intangible assets	6	10
Tangible fixed assets	18,693	20,234
Right-of-use assets	2,448	2,921
Investment in assosiated companies and JV's	96	444
Financial fixed assets	118	170
Total fixed assets	21,361	23,779
Current Assets
Stocks	175	169
Accounts receivables	978	1,048
Other receivables	471	566
Market based shares	15	8
Deposits, cash, etc	2,343	1,054
Total current assets	3,983	2,845
Assets held for sale	71	19
TOTAL ASSETS	25,415	26,644

	2021 3Q	2020 3Q
EQUITY AND LIABILITIES
Equity
Paid-in equity	252	4,603
Other equity	3,133	(12,624)
Non-controlling interests	30	9
Total equity	3,414	(8,012)
Liabilities
Long-term provisions	30	75
Other long-term debt	2	12
Debt to credit institutions	17,661	4,071
Total long-term debt	17,693	4,158
Current liabilites
Current portion of long-term debt	3,271	28,305
Other current liabilities	1,036	2,192
Total current liabilities	4,307	30,497
Total liabilities	22,001	34,655
TOTAL EQUITY AND LIABILITIES	25,415	26,644
Equity ratio	13.4%	-30.1%

Cash Flow

Summary

• A positive quarter with high order intake, strong vessel utilization and improved EBITDA-level.
• Solstad continue its strategy of selling off the nonstrategic part of the fleet – 24 vessels sold in 2021.
• Access to Global markets and compliance with local content requirements will continue to be a competitive advantage.
• The expected growth in offshore activity will be beneficial for offshore vessels. In oil & gas and in offshore-wind markets.