SeaBird Exploration PLC

SeaBird Exploration Plc

Annual Report

2023

©G. King

Annual Report 2023 2

Table of content

Financial highlights for the Group

Letter from the Chairman

Group Management

Board of Directors

Environmental, social and corporate governance

Transparency Act

Management Report

Consolidated Financial Accounts

Separate Financial Accounts: Seabird Exploration Plc

Independent Auditors’ Report

Declaration of the Members of the Board of Directors

100

Annual Report 2023 3

Financial highlights for the Group

Year ended 31 December

All figures in USD 000's except equity ratio

2023

2022

Revenues

34,635

20,164

Cost of sales

-19,062

-19,036

SG&A

-3,969

-3,889

EBITDA*

8,665

-1,276

EBIT*

2,411

-9,617

Profit/(loss) for the period

3,127

-11,605

Capital expenditures

2,745

3,895

Total debt

16,234

16,287

Net interest-bearing debt*

14,058

15,436

Equity ratio*

50%

45%

Note* see Note 34 in Consolidated Financial Accounts for definitions.

Annual Report 2023 4

Letter from the Chairman

I am very pleased to see Seabird Exploration report a positive

net result for 2023 and would like to thank all our employees for

your dedication and hard work.

The Q1 2023 spin-off of Green Minerals marked the final leg in

the restructuring of the Group. Through the restructuring, we

firmly believe we have right-sized the cost level, high-graded our

capacity to industry-leading standards, amended our operating

model to enable excellence in the product we deliver and

rearranged into an appropriate funding structure. We are

pleased to see these efforts finally beginning to show in the

company`s numbers.

While we have succeeded in making long term OBN source

work the backbone of the Company, the main challenge for

2024 is to further leverage on our considerable track record and

capacity for 2D work. While being an erratic business, the

increased need for energy security in many countries means the

demand for 2D seismic will continue. The Company perceives

competition to be low, providing a promising backdrop for

strong profitability for the few who are left.

The structural growth in OBN continues unabated and the

segment now constitutes more than 40pc of all offshore seismic

activity, up from around 15pc before the large downturn in oil

markets started in 2014. The OBN source market is in our opinion

tighter now than it was at the last peak, but rates have failed to

recover to previous highs of around USD 80,000 per day. We

believe rates need to continue to improve, though, as seismic

equipment & vessel economics are far from where they need to

be to give an adequate return. Considering the extended

downturn from 2014, vessel economics need to overshoot the

“average” profitability just to catch up. Indeed, looking at the

more than 50% reduction in vessel supply in the segments

relevant to SeaBird and no newbuild orders in sight, the 60% or

so growth in OBN demand over the same period implies that

something has to give. That something is usually day rates.

Admittedly, while being a public company has many

advantages, it can also create some constraints depending on

how our equity is priced in the marketplace at any time. We

continue to be strong advocates for the need for further

consolidation in our industry, and believe recent trends support

our argument. Notwithstanding this, we are confident that

SeaBird Exploration following the restructuring is well positioned

to take advantage of current trends in the energy markets.

Recent industry-leading contract awards testifies to this. And we

have both organization and equipment to do more in a market

that is improving.

Seabird enters 2024 with a strong order backlog, a solid balance

sheet and significant cash flow. Following a swift repayment of

close to half the Company`s debt in 2022/23, our capital

allocation focus has now turned to begin distributing cash to our

shareholders. Indeed, in the Q4 2023 report we announced the

first cash dividend in the Company`s history together with an

unambiguous target to pay out all excess cash to shareholders

on a quarterly basis going forward.

The Company continuously monitors opportunities that can

support profitable growth under the constraints mentioned

above.

Finally, I`d like to take this opportunity to thank everyone at

SeaBird for your dedication and can-do-attitude. Always doing

our utmost to deliver the best possible result to our clients keeps

Seabird competitive. Let`s keep up the good work!

Thank you!

Sincerely,

_______________________________________

Ståle Rodahl

Executive Chairman

SeaBird Exploration

Annual Report 2023 5

Group Management

Finn Atle Hamre – Chief Executive Officer.

Position held from 2021.

Mr. Hamre has held the position

as Chief Operating Officer of the

company since June 2018,

before taking over as CEO in

2021. Mr. Hamre has more than

25 years of experience in the

Offshore Oil and Gas industry

across both European and Asian

markets. He has more than 15

years of experience in senior

executive management

positions including VP, MD, CCO and CFO. He holds a B.Eng.

(Hons) in Naval Architecture, and a Master of Business

Administration.

Sveinung Alvestad – Chief Financial Officer.

Position held from 2022.

Mr. Alvestad has joined the

company as Director M&A in

May 2021 and appointed CFO in

August 2022. He has worked in

investment banking for about 10

years, with a special focus on

research on renewables and

energy markets and companies.

He holds a MSc in Industrial

Economics and Technology

Management from the

Norwegian University of Science and Technology (NTNU) in

Trondheim. His engineering specialization is within electrical

energy while the economics specialization is in investment,

finance and financial management.

Annual Report 2023 6

Board of Directors

Ståle Rodahl – Executive Chairman of the board

Ståle Rodahl has served 30

years in the financial industry,

amongst others as a hedge

fund manager and in various

executive positions in the

Investment Banking industry in

New York, London and Oslo

and in companies such as

Alfred Berg, ABN Amro and ABG

Sundal Collier. He has also

served on the Board of Directors

in companies in other industries. Mr. Rodahl holds a MSc with a

major in Finance from the Norwegian Business School, BI with

additional programs from London School of Economics (LSE)

and NASD, New York.

Øivind Dahl-Stamnes – Director

Øivind Dahl-Stamnes has

worked 36 years in the

petroleum industry in Norway

and internationally. He has held

executive/management

positions in Equinor and

Esso/Exxon for more than 15

years within exploration and

production operations. Recent

assignments in Equinor include

Vice President positions for the

Troll field, the North Area Initiative and Partner Operated

Licenses. He has also served as chairman and member of

numerous Production License Management Committees for

Equinor and Esso. Mr. Dahl-Stamnes holds a master’s degree in

geology from NTNU in Trondheim.

Sverre Strandenes – Director

Sverre Strandenes has worked

more than 35 years in the oil and

gas industry,and has extensive

experience from the seismic

industry. He obtained an MSc

degree in geophysics from the

University in Bergen in 1981.

Following that, he held various

positions in Norsk Hydro E&P

division within the Research

Center and the Exploration

Department. In 1995 he joined PGS where he has held several

senior/executive management positions, most recently as

Executive Vice President Sales & Services.

Hans Christian Anderson – Director

Hans Christian Anderson works

as a portfolio manager for one

of the company’s largest

shareholders, Anderson Invest

AS. He founded his first

company when he was 18

years old and has a broad,

international background as an

investor in multiple industries. Mr.

Anderson also serves on the

board of directors of other

companies.

Odd Sondre Svalastog Helsing – Director

Mr. Helsing currently holds the

position as investment manager

at MH Capital AS, the

Company’s largest shareholder.

Mr Helsing has worked more

than 11 years in finance and

prior to joining MH Capital AS

held the position as Co-Head of

Equity and Sales at Clarksons

Platou Securities. Mr. Helsing

holds a bachelor’s in economics

and business administration from Norwegian School of

Economics (NHH). He is a Norwegian citizen and resides in

Norway.

Annual Report 2023   Environmental, Social, and Corporate Governance  7 
Environmental, social, and corporate governance 
 
 Sustainability governance .......................................................................................................................................................................... 8 
 Our approach to ESG and their integration into our strategy................................................................................................................. 8 
 Environment performance ......................................................................................................................................................................... 9 
 Social performance .................................................................................................................................................................................. 10 
 Governance performance ...................................................................................................................................................................... 12 
 Targets and progress ................................................................................................................................................................................ 14 
 Future goals and plans ............................................................................................................................................................................. 14 
 Stakeholder engagement ....................................................................................................................................................................... 14 
 Disclaimer and assumption for the ESG reporting .................................................................................................................................. 15 
 Appendix: Sustainability accounting norms ...................................................................................................................................... 16 
 

Annual Report 2023 Environmental, Social, and Corporate Governance 8

1. Sustainability governance

Sustainability governance in the shipping industry is a crucial

element to ensure responsible and sustainable operations,

considering the growing awareness of environmental and social

issues. International organisations, such as the International

Maritime Organisation (IMO), play a pivotal role in developing

and implementing regulations to address the environmental

impact of shipping activities. Examples include the International

Convention for the Prevention of Pollution from Ships (MARPOL)

and the Energy Efficiency Design Index (EEDI), which aim to set

standards for pollution prevention and reduce greenhouse gas

emissions.

Market-based mechanisms, including sustainability indices,

sustainability-linked loans, and other financial instruments, can

incentivise environmentally friendly behaviour in the shipping

industry. Shipping companies also contribute to sustainability

governance by integrating sustainable practices into their

operations, developing policies, and reporting on their

Environmental, Social, and Governance (ESG) performance.

Stakeholder engagement is another critical aspect of

sustainability governance in shipping. Collaboration with

customers, suppliers, governments, and NGOs helps shipping

companies understand sustainability expectations and needs,

fostering collaborative initiatives. Stakeholder engagement also

builds trust and support, essential for long-term sustainability.

SeaBird Exploration acknowledges the inherent risks in the

shipping industry related to pollution, spills, health and safety,

and corruption. The company has implemented robust policies

and controls to manage these risks, ensuring compliance with

international and local laws. Oversight of SeaBird Exploration's

ESG policy falls under the responsibility of the Board of Directors,

which considers ESG issues throughout the year and reviews the

Code of Conduct and corporate governance structure

annually.

The Chief Executive Officer (CEO) oversees SeaBird Exploration's

operations, with Technical Managers handling incidents on the

front line. Regular training ensures that the team is equipped to

carry out their duties in a vigilant and safe manner. Continuous

monitoring and reporting allow for management follow-up, and

significant cases are reported to the Board of Directors.

In alignment with the Norwegian Corporate Governance Code,

SeaBird Exploration's commitment to sustainability is evident in its

consideration of the United Nations' Sustainable Development

Goals (SDGs). The company believes in contributing positively to

the broader global agenda and collaborates with industry,

customers, suppliers, investors, and regulators to make a

meaningful contribution towards achieving the SDGs.

Material issue

Internal

governance

documents

International standards

and references

Climate

change

Environmental

policy (HSE

policy)

SeaBird

Exploration KPIs

The Paris Agreement

The Intergovernmental

Panel on Climate

Change (IPCC)

Initial IMO Strategy on

Reduction of GHG

Emissions from Ships

Air emissions

Environmental

policy (HSE

policy)

SeaBird

Exploration KPIs

IMO MARPOL

Convention Annex VI

EU Sulphur Directive

2016/802

Ecological

impact

Environmental

policy (HSE

policy)

SeaBird

Exploration KPIs

UN Global Compact

IMO MARPOL

Convention Annex VI

IMO Ballast Water

Management

Convention

Hong Kong Convention

Anti-

corruption

Company’s

Code of

Conduct

SeaBird

Exploration KPIs

UN Global Compact

The US Foreign Corrupt

Practices Act and the

UK Bribery Act

Employee

health and

safety

Company’s

Code of

Conduct

HSE policy

SeaBird

Exploration KPIs

UN Global Compact

ILO Conventions

Maritime Labour

Convention, 2006

International

Management Code for

the Safe Operation of

Ships and for Pollution

Prevention (ISM Code)

Hong Kong Convention

Marine Crew Resource

Management

Accident

and safety

management

Safety

management

system

International

Management Code for

the Safe Operation of

Ships and for Pollution

Prevention (ISM Code)

Marine Crew Resource

Management

2. Our approach to ESG and their

integration into our strategy

SeaBird Exploration, a global provider of high-quality marine

seismic data, places a significant emphasis on Environmental,

Social, and Governance (ESG) factors within its operations. This

ESG report, covering the period from January 1, 2023, to

December 31, 2023, provides a comprehensive overview of the

company's performance in environmental sustainability, social

Annual Report 2023 Environmental, Social, and Corporate Governance 9

responsibility, and corporate governance across all regions of

operation.

The commitment to ESG at SeaBird Exploration stems from the

belief that responsible business practices not only benefit

stakeholders but also contribute to the long-term sustainability

of the business. The primary goal is to create value for

shareholders while minimising environmental impact and

positively contributing to local communities.

The report adopts a transparent and data-driven approach,

leveraging internal and external data sources to evaluate

performance against industry benchmarks and standards.

SeaBird Exploration's commitment to ESG is evident in its

strategy, policies, and operations, and the report serves as a

demonstration of progress towards ESG goals. Recognising

continuous improvement opportunities, the company remains

dedicated to enhancing ESG performance in the years ahead.

The areas of focus include:

• Ensuring the safety of personnel.

• Establishing a profitable and sustainable business.

• Upholding good governance and adherence to

regulations.

• Preserving the environment.

Aligned with the United Nations Global Compact's ten principles

and the Sustainable Development Goals (SDGs), SeaBird

Exploration's Sustainability Strategy aims to contribute to the

SDGs by 2030. The company endeavours to report actions and

initiatives in accordance with international standards and

frameworks, inviting stakeholders to engage in its ESG journey

and collaborate in building a sustainable future for the business

and the broader community.

3. Environment performance

At SeaBird Exploration, we place a paramount emphasis on

environmental sustainability and are unwaveringly committed

to minimising our impact on the environment. Our

environmental management strategy is shaped by the

principles set forth in the United Nations Sustainable

Development Goals (SDGs), with a specific and dedicated

focus on SDG 13 (Climate Action) and SDG 14 (Life Below

Water).

SeaBird Exploration recognises the vital role

of the shipping sector in global trade and

commerce and acknowledges its

responsibility to contribute to Sustainable

Development Goal (SDG) 13, which

emphasises urgent action to combat

climate change and its impacts. As a part

of this commitment, SeaBird Exploration places a strong focus on

environmental protection by meticulously monitoring and

managing emissions, discharges, and spills that could pose

environmental and ecological hazards within the shipping

industry.

The company's comprehensive environmental policy

encompasses various aspects, including environmental due

diligence, carbon dioxide emissions, sulphur oxide emissions,

nitrous oxide emissions, waste management, and spill

prevention. SeaBird Exploration's adherence to the Ship Energy

Efficiency Management Plan (SEEMP) and a robust accident

reporting system ensures diligent and responsible operations.

The company's ISO-certified Safety Management System aligns

with the International Safety Management Code (ISM), ensuring

compliance with international and local laws through proactive

risk management, monitoring, and reporting.

Key focus areas for SeaBird Exploration include:

• Improving Energy Efficiency: Implementing measures

to enhance the energy efficiency of vessels, such as

optimising speed to reduce fuel consumption.

• Reducing Waste and Emissions: Adopting practices to

minimise waste and emissions, including waste

reduction and recycling programs, utilising low sulphur

fuel, and employing ballast water treatment systems to

prevent the spread of invasive species.

• Supporting International Cooperation: Engaging in

and supporting international cooperation initiatives,

such as those led by the International Maritime

Organisation (IMO), to develop and implement

policies and regulations aimed at reducing the

environmental impact of the shipping sector.

• Encouraging Sustainable Supply Chain Practices:

Collaborating with suppliers and customers to promote

sustainable supply chain practices, including efforts to

reduce emissions from cargo handling and

transportation.

Through proactive measures in these areas, SeaBird Exploration

actively contributes to mitigating the impacts of climate

change and aligns with the goals of SDG 13, showcasing its

commitment to environmental sustainability within the shipping

industry.

Depleted reservoirs can be used to store carbon dioxide

through carbon capture and storage projects, and seismic

surveys contributes to map potential areas. SeaBird Exploration

contributed to an OBN/source project in Malaysia, which is

expected to reduce carbon dioxide volumes emitted via flaring

by 3.3 million tonnes of CO2 equivalent per year, making it one

of the largest offshore CCS projects in the world.

Annual Report 2023 Environmental, Social, and Corporate Governance 10

The shipping industry faces the imperative

of managing emissions, discharges, and

spills that could pose environmental and

ecological hazards. These factors, if not

handled with caution, can significantly

impact air and water quality, as well as

marine biodiversity. Recognising our

responsibility to protect the environment, SeaBird Exploration

diligently monitors and manages these risks to safeguard both

the environment and our organisation.

SeaBird Exploration faces potential risks related to discharges

and spills, necessitating effective risk management for success

in our business and the market. Thorough reviews of

environmental threats enable us to develop robust safeguards.

To minimise the environmental impact of our operations, we

employ monitoring and management tools that comply with

international and local legislation. Annual audits by the

Classification Society, in alignment with the ISM Code and,

where applicable, ISO9001 and 14001 standards, further

validate our commitment to environmental responsibility.

Oil spills can have devastating and prolonged effects on

ecosystems. Consequently, SeaBird Exploration has

implemented preventive measures and procedures to mitigate

the risk of oil spills. In 2023, we are proud to report zero oil or

environmental spills, showcasing the effectiveness of our

preventive measures. We adopt a proactive approach,

ensuring all vessels have Shipboard Oil Pollution Emergency

Plans (SOPEPs) and that our crews are trained to respond swiftly

and effectively in emergencies. Regular SOPEP drills maintain

the readiness of our teams and equipment.

By embracing these measures, SeaBird Exploration not only

protects the environment but also ensures the long-term

sustainability of our operations. We remain committed to

continual improvement, striving towards a future with zero spills.

In the realm of ballast water management, which is crucial for

ship stability, SeaBird Exploration acknowledges the potential

ecological threats posed by the discharge of ballast water

containing harmful aquatic species. To address this concern, we

adhere to the International Maritime Organisation's (IMO) Ballast

Water Management Convention, employing authorised Ballast

Water Management Plans and Ballast Water Management

Systems (BWMSs) on our ships. These measures align with

international standards, ensuring the safe and responsible

discharge of ballast water and reflecting our commitment to

environmental stewardship.

Ghost nets and marine debris

Marine debris, particularly ghost nets resulting from abandoned,

lost, or discarded fishing gear, poses a significant environmental

concern. Ghost nets can persistently ensnare and harm marine

animals and underwater equipment, making them a potential

threat during seismic surveys. In addition to the environmental

impact, ghost nets can jeopardise survey equipment, leading to

potential damage or delays in the survey process.

To address this issue, Seabird Exploration actively tackles ghost

nets and other marine debris encountered during surveys. These

items are inadvertently brought to the surface during operations

and are carefully collected, stored on vessels, and subsequently

disposed of in port. The entire process, including the recovery

and disposal of debris, is meticulously logged within our safety

management system.

In 2023, the Eagle Explorer has recorded over 44 instances of

debris being retrieved and appropriately handed over for

proper disposal. This commitment reflects our dedication to

environmental responsibility and minimising the impact of our

operations on marine ecosystems.

Furthermore, Seabird Exploration has implemented specific

procedures and protocols to reduce the generation of marine

debris during surveys. These include the proper disposal of any

debris retrieved during the survey and the implementation of

measures to secure and maintain equipment, minimising the risk

of loss or breakage. These efforts contribute to our commitment

to sustainable practices and the preservation of marine

environments during our seismic survey operations.

Noise emissions

Seabird Exploration actively takes measures to mitigate the

impact of acoustic noise generated by seismic vessels on

marine animals, particularly in environmentally sensitive areas.

The company has implemented specific operating protocols

when navigating through such regions. To further ensure the

protection of marine life, Seabird Exploration deploys protective

species observers on board and utilises passive acoustic

monitoring.

In the year 2023 alone, our commitment to environmental

stewardship resulted in 57 instances where seismic surveys were

temporarily halted due to the presence of protective species in

the proximity of the project area. These measures underscore

our dedication to responsible and sustainable practices that

prioritise the well-being of marine ecosystems and wildlife.

4. Social performance

This section offers comprehensive insights into Seabird

Exploration's labour practices, health and safety policies, and

community engagement initiatives. Additionally, it outlines the

Annual Report 2023 Environmental, Social, and Corporate Governance 11

company's endeavours to foster diversity and inclusion in the

workplace, alongside its human rights policies.

HSE performance

In the realm of offshore operations, where

inherent safety and security hazards

abound, SeaBird Exploration places

paramount importance on meticulous

management to safeguard crewmembers,

vessels, cargo, and the environment.

Anchored in a zero-accident policy, the

company operates in strict accordance with the International

Safety Management (ISM) Code, as delineated in target 3.9.

Recognising safety and security as pivotal elements of its

operations, SeaBird Exploration pledges to accord them the

highest priority. The zero-accident policy serves as the bedrock

of the company's risk management approach, supported by

robust systems and procedures. Crewmembers undergo

comprehensive training to equip them with the necessary skills

and knowledge for effective risk identification and

management.

Adherence to the ISM Code is integral to SeaBird Exploration's

operations, offering a comprehensive framework for safety and

security management in the maritime industry. Regular audits

and inspections ensure compliance with the Code's provisions,

with prompt corrective action taken when necessary.

Acknowledging responsibilities beyond its own operations,

SeaBird Exploration collaborates closely with various

stakeholders, including industry groups and regulatory

authorities, to champion best practices and enhance safety

and security across the industry.

In summary, SeaBird Exploration navigates the inherent hazards

of offshore operations with a dedicated commitment to careful

management, prioritising the well-being of crewmembers,

vessels, cargo, and the environment. The company's zero-

accident policy and adherence to the ISM Code form the core

of its approach, as it actively collaborates with stakeholders to

promote industry-wide best practices and elevate safety and

security standards.

At SeaBird Exploration, the safety and well-being of our onshore

and offshore workers are paramount. Our enduring

commitment to health and safety is integral to our sustained

success. We acknowledge the intrinsic safety and security

hazards associated with offshore operations for our crew,

vessels, cargo, and the environment, prompting the adoption of

a zero-accident policy and strict compliance with the ISM

Code.

To effectively manage risks, we have instituted comprehensive

procedures to assess all known threats to our ships and crew.

Encouraging a culture of reporting, our crew members are

prompted to share all accidents, events, and near misses, with

managerial support in place. Leveraging the OCIMF guidelines

for Lost Time Incidents and Total Recordable Cases and

Frequency, we conduct a thorough analysis of incidents across

our entire fleet, identifying root causes to enhance future

operations.

In 2023, we recorded only four first aid, all associated with poor

situational awareness. Notably, we achieved zero Lost Time

Incidents (LTI) and zero recordables during this period. Our

commitment to continuous improvement in safety measures

ensures that our workers operate in a safe and secure

environment, further solidifying our dedication to their well-

being.

Human and labour rights

At our company, we maintain a steadfast

commitment to upholding universally

accepted human rights, guided by the UN

Guiding Principles on Business and Human

Rights (UNGP). The validity of our

operational license hinges on our

consistent respect for the fundamental

human rights of workers, clients, customers, societies,

governments, and other stakeholders, as stipulated in targets 8.7

and 8.8.

Recognising that safeguarding and promoting human rights is

integral to the sustainable and responsible conduct of our

business, we firmly embed our principles in the UNGP—a

comprehensive framework ensuring businesses' adherence to

human rights. We are devoted to integrating these principles

into all facets of our operations, encompassing hiring and

training practices, supply chain management, and community

engagement.

We acknowledge that upholding human rights demands

ongoing commitment and a dedication to continuous

improvement. Accordingly, we routinely review our policies and

practices to align them with the latest standards and best

practices. Collaboration with diverse stakeholders ensures the

effectiveness and meaningful impact of our endeavours.

In summary, our company is wholly committed to upholding

universally recognised human rights in accordance with the UN

Guiding Principles on Business and Human Rights. We firmly

believe that respecting human rights is imperative for the

responsible conduct of our business, and we are resolute in

continually enhancing our policies and practices to meet the

highest standards.

At SeaBird Exploration, we prioritise the protection of human

rights and align our actions with internationally declared

standards. We recognise the significance of corporate support

and respect for human rights, committing to uphold these

principles across all facets of our operations. Our policies and

practices are grounded in the UN Guiding Principles on Business

and Human Rights, extending to all stakeholders, including

workers, clients, customers, society, government, and others.

As a testament to our commitment to human rights, we ensure

compliance with the Maritime Labour Convention (MLC 2006)

on all our vessels. Each vessel holds a certificate affirming

adherence to the standards outlined in this convention.

Additionally, we have forged a special agreement with the

International Transport Workers' Federation (ITF) to regulate

seafarer working conditions. We take the well-being of our

employees seriously, recognising their fundamental right to work

in a safe and healthy environment.

Annual Report 2023 Environmental, Social, and Corporate Governance 12

We vigilantly monitor our operations to prevent engagement in

any activities that violate human rights. Our robust systems are

designed to identify, prevent, and mitigate potential risks.

Collaborating closely with stakeholders, including local

communities and authorities, allows us to address concerns

promptly and uphold human rights.

In summary, SeaBird Exploration is committed to respecting

human rights and ensuring that our operations align with

internationally declared standards. We prioritise the well-being

of our employees and collaborate with stakeholders to prevent

any potential breaches of human rights.

Diversity and equality

At SeaBird Exploration, our unwavering

commitment is to establish a diverse and

inclusive workplace that champions

equality. Aligned with our dedication to

achieving Sustainable Development Goal

#5 (Gender Equality), we recognise

diversity as a powerful driver of long-term

value development. We firmly believe that a workforce with

varied backgrounds and experiences fosters creativity and

facilitates astute business decisions, enabling us to adapt swiftly

to evolving markets and situations.

In our pursuit of an inclusive workplace, we have instituted a

Code of Conduct that delineates standards and guidelines for

our crew members to adhere to. Our company strictly prohibits

discrimination based on various factors such as sex, ethnicity,

colour, age, religion, sexual orientation, marital status, national

origin, disability, heritage, political opinion, or any other basis.

We take deviations from external legislation or our internal

guidelines seriously, and any such instances or concerns should

be reported directly to the nearest manager or in accordance

with our complaint’s procedures.

Acknowledging the predominantly male composition of the

maritime industry, with women comprising only 2% of the world's

1.2 million seafarers, as reported by the International Maritime

Organisation (IMO), and with 94% working in the cruise industry,

we aim to contribute to a more gender-diverse industry by

striving for balance in the gender composition of our workforce.

In 2023, SeaBird Exploration achieved an average gender

distribution offshore of 3%. Recognising the untapped potential

associated with gender parity, we believe that achieving a

more balanced workforce is crucial. In our office, the gender

distribution stands at 38% women and 62% men.

In conclusion, SeaBird Exploration is an equal opportunity

employer committed to fostering diversity and inclusivity. We

prohibit discrimination against any employee and expect our

crew to adhere to our Code of Conduct. Our commitment

extends to contributing to a more gender-diverse industry, and

we are resolute in achieving gender parity within our workforce.

Training and development

Recognising the vital role of investing in

training and development for

organisational strength, SeaBird Exploration

affirms its commitment to providing

personnel with opportunities for learning

and growth. This commitment is viewed not

only to enhance productivity and

efficiency but also as a catalyst for promoting safe operations.

SeaBird Exploration adopts a systematic approach to training

and development, ensuring that personnel possess the requisite

skills and knowledge to excel in their roles. The strategic

alignment of individuals with appropriate positions through

training contributes to the delivery of meaningful and inclusive

work, thereby contributing to overall success.

The company takes pride in cultivating a culture of learning and

development, viewing investments in personnel growth as

indispensable for organisational stability and the achievement

of long-term goals. As a testament to its commitment to

education and training in the maritime sector, SeaBird

Exploration extends opportunities for cadets to gain hands-on

experience aboard its vessels.

Supporting the next generation of seafarers, SeaBird Exploration

emphasises the importance of contributing to their education

and development. Bringing cadets on board provides them with

practical knowledge and skills that complement classroom

learning, creating invaluable experiences crucial for their

education and future careers in the industry.

The company remains dedicated to promoting education and

training opportunities for all individuals interested in pursuing

maritime careers. By facilitating cadets' experiences on its

vessels, SeaBird Exploration actively contributes to nurturing the

next generation of skilled and knowledgeable seafarers.

5. Governance performance

This section furnishes details on Seabird Exploration's corporate

governance procedures, encompassing insights into its board

composition and methods for risk management. Additionally,

the company may outline its internal control mechanisms and

articulate its guidelines for upholding ethical business practices.

Our company is unwavering in its

commitment to upholding human rights

and advocating for universal labour

standards. We actively instil responsible

conduct among our employees through

the alignment of our values, policies, and

procedures with the principles of target

16.1. The prohibition of corruption is strictly enforced within our

organisation, aligning with our commitment to target 16.2. We

strongly encourage our staff to report any concerns they may

have, fostering a culture of transparency and accountability.

Annual Report 2023 Environmental, Social, and Corporate Governance 13

Ethical business conduct

SeaBird Exploration maintains the highest standards of ethics

and integrity throughout its business operations. This

commitment is clearly articulated in the company's Code of

Conduct, which adheres to the most stringent regulations and

industry recommendations, including the OSEBX.

Recognising that robust governance and risk management

structures are integral to achieving commercial success and

generating long-term value for stakeholders such as employees,

owners, and society, SeaBird Exploration prioritises transparency,

reliability, and accountability in its reporting and

communications.

To ensure that employees are well-prepared with the necessary

training and reporting channels, the company has established

robust policies and procedures for incident reporting and follow-

up. SeaBird Exploration is fully dedicated to operating safely and

in compliance with local laws and regulations, communicating

the implications of relevant legislation to employees through

comprehensive training programs.

The company remains steadfast in its dedication to promoting

effective, accountable, and inclusive institutions at all levels of

the organisation, recognising their pivotal role in building a

sustainable future.

Code of Conduct

SeaBird Exploration's unwavering commitment to transparency,

accountability, and ethical conduct permeates every facet of

its operations. The company ensures compliance with all laws

and regulations in the jurisdictions where it operates, even in

areas with underdeveloped frameworks for human rights and

corruption. Employees are held to high standards of integrity

and honesty, irrespective of any personal or organisational

conflicts of interest. Notably, SeaBird Exploration's activities align

with the goals of Sustainable Development Goal 8, emphasising

the promotion of decent work and economic growth.

In order to guarantee that all individuals associated with SeaBird

uphold these elevated standards of behaviour and business

practices, the company has formulated a comprehensive

Code of Conduct. This document delineates the company's

principles and expectations on crucial matters such as human

and labour rights, health and safety, business ethics, and legal

compliance. The Code of Conduct is readily accessible on the

company's website, integrated into the Safety Management

System, and included in the orientation for new employees.

Furthermore, it serves as a standard addendum in every

significant contract that SeaBird Exploration enters into with third

parties.

Whistleblowing

SeaBird Exploration places a high value on fostering a culture of

transparency and effective communication, recognising their

pivotal role in achieving organisational objectives. In line with

this commitment, the company has formulated a

Whistleblowing Policy designed to offer support to all employees

and contractors willing to report any concerns related to the

company's activities. This includes actions or incidents that may

violate the law, the company's Code of Conduct, or other

policies.

To promote a conducive environment for reporting, SeaBird

Exploration has instituted secure channels for reporting incidents

and whistleblowing. The company actively encourages

employees to feel comfortable bringing forth any concerns.

Colleagues can confidentially report critical issues by sending

an email to whistle@sbexp.com.

SeaBird Exploration wants to assure its employees and

contractors that the company and its representatives are

committed to non-retaliation against anyone who reports a

concern through this channel. It's noteworthy that, as of now,

there have been no reports made through this whistleblowing

channel.

Anti-bribery and corruption

SeaBird Exploration firmly opposes corruption and bribery within

the shipping industry, recognising the detrimental impact these

practices can have on social and economic development.

They pose risks to the safety of shipping crews, increase legal

and reputational liabilities, and contribute to elevated costs. To

address these concerns, SeaBird Exploration has established a

zero-tolerance policy against bribery and corruption at all

stages of its operations, as outlined in its Code of Conduct.

In actively managing corruption risks, the company closely

monitors operations in high-risk countries and refrains from

making port calls in any of the nations ranked in the bottom 20

of Transparency International's Corruption Perception Index for

the year 2023. Moreover, SeaBird Exploration ensures that no

facilitation payments were made in 2023 and reports no

instances of non-monetary sanctions imposed on the company.

Demonstrating a commitment to transparency and anti-

corruption efforts, SeaBird Exploration employs various measures

to combat corruption. All personnel undergo mandatory anti-

corruption training to enhance awareness of corruption issues

and equip them with the skills to navigate potential bribery

challenges.

Supply chain management

SeaBird Exploration operates with the highest level of integrity

and expects all its business partners to adhere to similarly

stringent ethical standards. Before committing to any significant

undertakings or large-scale projects, we make sure to gather

sufficient information about potential collaborators to assess the

risk of corruption or human rights issues.

The extent of due diligence conducted on a specific business

associate is directly proportional to the degree of cooperation

involved. Consequently, we may undertake a comprehensive

due diligence investigation on potential partners, evaluating

any potential reputational concerns. Prior to each

engagement, we screen key suppliers, such as shipping agents

and commercial agents, and mandate their completion of a

thorough due diligence checklist.

In an effort to improve supplier compliance and streamline

management, we are currently in the process of implementing

Annual Report 2023 Environmental, Social, and Corporate Governance 14

new procedures for onboarding, supplier management, and

the tendering and selection of chase vessels. All vendors must

certify that they have read and comprehended SeaBird

Exploration's policies, including the Code of Conduct, to ensure

a collective commitment to ethical standards.

Corporate governance

Openness and confidence are crucial elements in effective

corporate governance, and SeaBird Exploration acknowledges

the significance of cultivating transparency and trust among

various stakeholders. These stakeholders encompass

shareholders, the board of directors, executive management,

employees, customers, suppliers, government agencies, and

the public.

6. Targets and progress

This portion delineates the ESG objectives and aspirations of the

organisation, along with its advancements in achieving these

objectives.

Annually, we establish or sustain a series of crucial indicators or

goals related to various facets of sustainable development, and

the listed Key Performance Indicators (KPIs) reflect these efforts.

KPI

SDG

Target 2024

LTI

SDG 3

TRCF

SDG 3

< 1

Total injury rate

SDG 3

< 1

Intervention rate

SDG 8

> 1034

Training hours

SDG 4

> 7059

Retention rates

SDG 8

> 90%

Experience rates

SDG 4

> 90%

Spill

SDG 14

Garbage

SDG 14

Reduction from

2023

Emissions

SDG 13

> 80%

Supplier evaluation

SDG 16

> 50

Due to the variable nature of our projects and the fleet size

impacting our operations, establishing emissions targets proves

challenging. Consequently, we've formulated specific

parameter configurations for engines and compressors outlined

in the Ship Energy Efficiency Management Plan (SEEMP).

Optimal settings, referred to as "green seismic operation" or

"green transit," are identified based on the operational context.

Our Key Performance Indicator (KPI) centers on the frequency

of utilising these eco-friendly configurations. We monitor and

assess these targets quarterly. Additionally, we've implemented

the Maress engine settings monitoring system, enabling us to

correlate engine load with operations. This facilitates engine trim

adjustments, reducing emissions in the process.

7. Future goals and plans

In recent times, there has been a growing demand for

sustainable development practices within the energy industry,

and Seabird Exploration has taken strides in this direction by

implementing various initiatives. Here are some areas where

Seabird Exploration can enhance its sustainable development

efforts in the future:

1. Minimise greenhouse gas emissions: Seabird

Exploration is committed to reducing its greenhouse

gas emissions by adopting measures such as

employing more efficient engines settings and

decreasing fuel consumption during operations.

2. Integrate sustainable practices into operations: The

company aims to diminish its environmental footprint

by incorporating sustainable practices, including

waste reduction, utilisation of eco-friendly materials,

and the promotion of recycling.

3. Foster collaboration with stakeholders: Seabird

Exploration intends to promote cooperation with

stakeholders, such as governments, NGOs, and local

communities, to ensure that its operations are

sustainable and devoid of adverse impacts on the

environment and local communities.

4. Advocate sustainability in the supply chain: Seabird

Exploration seeks to instil sustainability within its supply

chain by partnering with suppliers committed to

sustainable practices and sourcing environmentally

friendly materials and equipment.

In essence, Seabird Exploration places a high priority on

sustainable development across all facets of its operations,

ranging from lessening its environmental impact to engaging in

collaborative efforts with stakeholders to guarantee sustainable

and mutually beneficial outcomes.

8. Stakeholder engagement

Stakeholder involvement plays a pivotal role in the sustainable

development strategy of companies such as Seabird

Exploration. As a global marine seismic data acquisition firm,

Seabird Exploration operates in diverse regions, necessitating

interactions with various stakeholders, including governments,

NGOs, local communities, employees, and customers.

To ensure sustainable development, Seabird Exploration

employs several approaches in engaging with stakeholders. A

key method involves regular dialogue with local communities,

governments, and NGOs. Collaboration with governmental

bodies and non-profit organisations is integral for adhering to

regulations, identifying, and mitigating environmental and

social risks, and advocating responsible practices.

Seabird Exploration extends its engagement efforts to

employees through diverse initiatives, ensuring they are well-

informed about the company's sustainable development

policies and practices. This includes providing training on

environmental and social issues, encouraging employees to

report concerns, and acknowledging their contributions to

sustainable development.

Annual Report 2023 Environmental, Social, and Corporate Governance 15

In addition to primary stakeholders, Seabird Exploration actively

involves its customers in the process. Collaborating closely with

customers allows the company to grasp their needs, recognise

areas for improvement, and endorse responsible practices

within the energy industry.

Overall, Seabird Exploration's commitment to stakeholder

engagement serves as a mechanism to identify and mitigate

environmental and social risks, foster responsible practices, and

cultivate trust and support from its stakeholders. Through these

efforts, the company not only builds a reputation as a socially

responsible and environmentally conscious entity but also

attracts and retains customers, employees, and investors who

prioritise sustainable development.

9. Disclaimer and assumption for the

ESG reporting

The information provided relies on the most trustworthy data

accessible during the reporting period. Although ESG disclosures

offer a glimpse into the handling of sustainability risks, there are

instances where certain data may be approximated.

Annual Report 2023 Environmental, Social, and Corporate Governance 16

10. Appendix: Sustainability accounting norms

Topic

Accounting metrics

Unit of measure

Data 2022

Data 2023

Reference

Climate risk and

climate footprint

Scope 1 GHG emissions

Metric tonnes

-eq.

15 597

24 192

GRI 305-1

SDG 13

Air pollution

Sulphur emissions (kg)

5 718

7 176

MARPOL Annex VI

Reg. 14

Other air emissions

Metric tonnes (t)

: 197

: 304

GRI 305-7

SDG 3

MARPOL Annex VI

Reg. 13 and 14

Ship recycling

Responsible ship recycling

Text/figure

N/A

SDG 8, 12 and 14

EU ship recycling

regulation (EU

1257/2013)

Ecological

impacts

Shipping duration in marine

protected areas and areas

of protected conservation

status

Number of travel

days

GRI 304-2

SDG 14

Number of aggregate

volume of spills and releases

to the environment

Number, cubic

meters (m

)

GRI 306-3

SDG 14

Accidents, safety

and labour rights

Lost time incident

frequency (LTIF)

Rate

GRI 403-9

SDG 3 and 8

IMO ISM code

Diversity

Percentage (%)

At the end of 2023, the diversity mix

was 62% men and 38% women in the

office, roughly the same as end of

2022

GRI 405-1

SDG 5 and 10

Labour rights

Text

Maritime Labour Convention (MLC)

certification on all managed vessels

GRI 102-41

SDG 8

Port state control

Number of

deficiencies

SDG 8 and 14

Marine casualties

Number

SDG 8

Business ethics

Corruption risk

Number of value

SDG 16

Facilitation payments

Number

SDG 16

Fines

Figure

Reporting

currency

$300

GRI 419-1

SDG 16

ESG governance

Policies and targets

Text

Code of Conduct, HSE policy,

whistle-blower procedure

GRI

Disclosure of

Management

Approach

Activity metric

Unit of measure

Data 2022

Data 2023

Number of unique shipboard individuals

Number

205

198

Total distance travelled by vessels

Nautical miles (nm)

49464

50181

Operating days

Days

365

Number of vessels in total shipping fleet

Number

Annual Report 2023   Transparency Act  17 
Transparency Act 
 
 Background............................................................................................................................................................................................... 18 
 Explanation of the act .............................................................................................................................................................................. 18 
 Objectives of the act ............................................................................................................................................................................... 18 
 Requirements for compliance ................................................................................................................................................................. 18 
 Impact on businesses ............................................................................................................................................................................... 19 
 Steps taken to comply with the act ........................................................................................................................................................ 19 
 Challenges faced ..................................................................................................................................................................................... 21 
 Solutions to overcome challenges .......................................................................................................................................................... 21 
 Successes achieved ................................................................................................................................................................................. 21 
 Improved supply chain transparency ................................................................................................................................................ 22 
 Increased efficiency in operations ..................................................................................................................................................... 22 
 Enhanced client trust ........................................................................................................................................................................... 23 
 Potential for increased sales and revenue ........................................................................................................................................ 23 
 Recap of key points ............................................................................................................................................................................. 24 
 Future implications of the act ............................................................................................................................................................. 24 
 Recommendations for advances ...................................................................................................................................................... 24 
 

Annual Report 2023 Transparency Act 18

1. Background

The Transparency Act came into effect on July 1, 2022, and

requires several Norwegian companies to have a relationship

with how their business operations may impact fundamental

human rights and decent working conditions. The background

for this law is a clear expectation from the authorities, society,

and clients that businesses should act with increased

responsibility throughout their value chain.

The purpose of the Transparency Act is to promote companies'

respect for fundamental human rights and decent working

conditions in connection with the production of goods and

delivery of services.

The purpose of this report is to provide stakeholders and other

interested parties with insight into SeaBird Exploration’s

operations and performance, including financial,

environmental, and social aspects. The report provides

information on our strategies, goals, and achievements, as well

as any challenges or risks the Group face. The purpose of this

report is also to comply with reporting and transparency

requirements from authorities or regulatory bodies, as well as to

improve SeaBird Exploration's reputation and trust among

stakeholders and society as a whole.

The scope of this report will focus on the company's policies and

practices related to respecting human rights throughout its

operations and supply chain. The report includes information on:

• Human rights risks and impact assessments

• Policies and procedures related to human rights,

including any codes of conduct or standards adopted

by the Group

• Training and awareness-raising activities for employees

and suppliers related to human rights

• Grievance mechanisms for addressing human rights

abuses or violations

• Due diligence processes for identifying and mitigating

human rights risks in the supply chain

• Performance indicators and targets for improving the

company's human rights practices over time.

Overall, the report provides a comprehensive and transparent

account of the company's human rights practices, including

any shortcomings or areas for improvement.

2. Explanation of the act

The Norwegian Transparency Act (offisielllovdata.no/lov/2020

06-19-43) was first passed in June 2020 and became effective

on January 1, 2021. The Act aims to promote transparency and

accountability in Norwegian business operations, particularly in

relation to supply chains and human rights. It requires large

companies to report on their efforts to identify and address risks

of negative impacts on human rights, including forced labor,

child labor, and other human rights violations, in their operations

and supply chains.

In June 2021, the Norwegian Parliament passed an amendment

to the Transparency Act (Prop. 161 L (2020-2021)) to extend the

reporting requirements to include environmental risks and

impacts. The amendment requires large companies to report on

their efforts to identify and address environmental risks and

impacts in their operations and supply chains, including

greenhouse gas emissions, waste management, and water use.

The reporting requirements under the Transparency Act apply to

companies with more than 250 employees or with an annual

turnover exceeding NOK 70 million (approximately USD 8 million)

and are required to be included in the annual report or in a

separate report published on the company's website.

The Norwegian government has stated that the Transparency

Act is part of its broader efforts to promote sustainable business

practices and protect human rights and the environment.

3. Objectives of the act

The objectives of the Norwegian Transparency Act are to

promote transparency and accountability in business

operations, with a particular focus on identifying and addressing

risks of negative impacts on human rights and the environment

in supply chains.

The Act requires large companies to report on their efforts to

identify and address these risks, including forced labor, child

labor, and other human rights violations, as well as

environmental risks and impacts, such as greenhouse gas

emissions, waste management, and water use.

By requiring companies to report on these issues, the Act aims to

increase awareness and understanding of the potential human

rights and environmental impacts of business operations and

supply chains, and to encourage companies to take steps to

prevent and mitigate these risks. The Act also aims to provide

stakeholders, including investors, clients, and civil society

organizations, with information to help them make informed

decisions about companies and their practices. Ultimately, the

objective of the Transparency Act is to promote sustainable

business practices and protect human rights and the

environment.

4. Requirements for compliance

To comply with the Transparency Act, companies must provide

a report that includes the following information:

1. A description of the company's policies and practices

for identifying and addressing risks of negative impacts

on human rights and the environment in its operations

and supply chains.

2. An assessment of the company's actual and potential

negative impacts on human rights and the

environment, including an analysis of risks and impacts

in its supply chain.

3. A description of the measures the company has taken

to prevent and mitigate negative impacts on human

rights and the environment, including information on

due diligence processes, risk assessments, and

remediation efforts.

4. A description of the company's engagement with

stakeholders, including workers, local communities,

and civil society organizations, to identify and address

Annual Report 2023 Transparency Act 19

risks of negative impacts on human rights and the

environment.

5. A description of the company's monitoring and

evaluation mechanisms for assessing the effectiveness

of its measures to prevent and mitigate negative

impacts on human rights and the environment.

6. A statement of assurance by the company's

management that the report is accurate and

complete.

The Transparency Act requires that the report be included in the

company's annual report or in a separate report published on

the company's website. Companies that fail to comply with the

reporting requirements may be subject to fines or other

sanctions.

5. Impact on businesses

The impact of the Norwegian Transparency Act on businesses

depends on the specific company and its operations. However,

in general, the Act has several potential impacts on businesses,

including:

Increased awareness and understanding of human rights and

environmental risks: The reporting requirements of the

Transparency Act require companies to conduct a thorough

assessment of their operations and supply chains to identify and

address risks of negative impacts on human rights and the

environment. This increases the awareness and understanding

of potential risks and impacts and encourages companies to

take steps to prevent and mitigate them.

Increased transparency and accountability: The Transparency

Act requires companies to provide detailed information on their

policies, practices, and efforts to prevent and mitigate negative

impacts on human rights and the environment. This increases

transparency and accountability and helps stakeholders,

including investors, clients, and civil society organizations, make

informed decisions about companies and their practices.

Reputational risks: Companies that fail to comply with the

reporting requirements or are found to have negative impacts

on human rights or the environment could face reputational

risks, which could harm their brand and affect client and investor

confidence.

Increased costs: Companies may need to invest in additional

resources, such as staff or systems, to comply with the reporting

requirements of the Transparency Act. This could result in

increased costs for businesses.

Overall, the impact of the Norwegian Transparency Act on

businesses is likely to be positive in the end, as it encourages

sustainable business practices, protects human rights and the

environment, and promotes transparency and accountability.

However, in the short term, some companies may face

challenges in complying with the reporting requirements and

implementing measures to prevent and mitigate negative

impacts on human rights and the environment. It is important for

businesses to proactively assess their operations, identify risks,

and develop strategies to address them in order to navigate the

impact of the Transparency Act effectively.

6. Steps taken to comply with the act

SeaBird Exploration is a company managing ships and as such

obliged to follow the International Safety Management Code

(ISM), which means we need to have a safety management

system. This system provides us with a tool for among others

handling of controlled documents as policies, procedures, etc.

Our section of governance documents contains:

• Code of conduct

• Mission statement

• Policies on:

o Anti-harassment

o Health, safety, and environment

o Quality

o Right to refuse work

o Security

o Smoking

o Substance abuse

o Whistle-blower

o Working alone

Risk assessments are an integral part of how we do business.

Already on tender stage, a risk assessment is performed, where

the following areas of activities are assessed: opportunities,

general, client, health, safety, security, environment, CSR,

emergency response and contingency, technology and

equipment, logistics, subcontractors/partners, operation,

maritime, legal, and contractual, finance, personnel, and ICT.

Within CSR the following are considered: local content

requirements, politically inconvenient regime, child labor,

medevac facilities and possibilities, local CSR regime and local

information campaign.

SeaBird Exploration’s values:

1. Integrity: We treat everyone involved in the

organization - staff, stakeholders, and customers alike -

with dignity and respect. We are truthful and candid

and endeavor to keep our promises and deliver on our

commitments.

2. Commitment: We are committed to creating a culture

that values individual and collective energy, spirit,

leadership, creativity, and innovation.

3. Excellence: In everything the group do, we search for

excellence and continuous improvement to ensure

client satisfaction and business success.

Organization

Annual Report 2023 Transparency Act 20

Whistleblowing

SeaBird Exploration has developed a policy for whistleblowing in

order to prevent or detect and correct improper activities,

encourage all SeaBird employees and contractor personnel to

report what he or she in good faith believes to be a material

violation of law or policy or questionable business or financial

activities by any SeaBird employees. This includes members of

line management and senior management and ensures that a

formal reporting process is established, and to protect Reporting

Individuals from retaliatory action.

This procedure is also available for external parties, for example

suppliers, and can be reached on our public webpage.

SeaBird Exploration conducts yearly internal and external audits

to ensure that we follow our own and regulatory standards.

Training

SeaBird Exploration has pre-defined training requirements for

both office and vessels. All job descriptions define what is

expected in terms of education and experience. In addition, a

matrix of required training to be taken ad hoc or annually is part

of our safety management system, and subject for yearly

review. The latest additions to the training matrix concern cyber

security and anti-corruption.

Management system

As a ship management company, SeaBird is controlled by

regulators to have a safety management system in place. This

system is approved by Class society and is subject to yearly

audit, both internal and external. In addition, are we audited by

clients and contractors on a regular basis. The safety

management systems contain among others document

control, incident reporting, management of change, risk

assessments, system of permit to work and all our processes and

procedures. All processes and procedures are reviewed on an

annual basis. The safety management system also includes

handling and follow-up of any findings from any kinds of audits.

Handling of deficits

Any kind of incidents or deviation from our standard operations

shall be reported and analyzed with the purpose of improving

health, safety, environmental, security and quality performance.

The process covers the reporting requirements defined in the ISM

Code, ISPS Code, MLC, ISO standards. All personal injuries, spills,

property damages, non-conformities and near-misses shall be

reported and considered for investigation as per SeaBirds

Incident Management Matrix.

Knowledge sharing

The group’s safety management system allows the possibility to

distribute the acquired knowledge within in the fleet. This is

encouraged through procedures, and the question is

automatically raised through the handling of incidents. For

safety observations, the possibility would be same, in addition

good practice and improvement suggestions are categories to

be used.

Definition of risk parameters

Risk parameters for human rights violations in the supply chain

may vary depending on the industry and geographic area.

However, some common risk parameters are:

• Geographical location: Certain areas may have a

higher risk of human rights violations, such as countries

with poor human rights records, areas with political

unrest or conflict, or areas with high labor migration.

• Working conditions: Poor working conditions can lead

to human rights violations, such as forced labor, child

labor, unfair wages, long working hours, hazardous

working conditions, or lack of union rights.

• Environmental issues: Irresponsible environmental

practices can also lead to human rights violations,

such as pollution of water, air, and soil, or destruction

of natural areas and indigenous lands.

• Business practices: Some business practices can also

have a negative impact on human rights, such as

corruption, bribery, or exploitation of the company's

power to pressure suppliers.

• Political involvement: Some companies may also be

involved in political activity that can lead to human

rights violations, such as support for authoritarian

regimes or illegal activities that may threaten human

rights.

It is important to identify these risk parameters to be able to map

and address potential risks in the supply chain to ensure that the

company and its suppliers comply with international human

rights standards.

SeaBird Exploration has developed a questionnaire to be used

for evaluation of suppliers. The questionnaire contains questions

on their quality management system, health and safety,

environmental management system, corporate social

responsibility (CSR) and financial information. The CSR part has

the following questions:

• Is your company certified with social accountability

management system?

• Does your company have in place a policy

commitment to respect human rights?

• Does your company carry out a human rights due

diligence (e.g. a human rights impact assessment) as

appropriate to your size and context of operation?

• Has your company ever been subject of an

investigation or been accused of violating the FCPA,

UK Bribery Act or any applicable anti-corruption laws

or engaging in any practice which could be construed

as an improper payment to a public official.

• Does your company have policies in place to foster a

work environment free from abuse, threats and

mistreatments?

• Does your company have procedures in place that

ensure only hiring employees with a minimum age in

accordance with local laws corresponding to the ILO

conventions?

• Do you provide training to your employees aimed at

anti-corruption?

Annual Report 2023 Transparency Act 21

• Do you acknowledge the right of workers to adopt

collective bargaining?

• Does your company have policies that ensure that

new and existing workers are not discriminated against

on the grounds of race, sex, age, colour, religion,

disability, sexual orientation and ethnicity?

• Does your company have policies on workforce

conditions that ensure reasonable working hours and

fair remunerations corresponding to ILO conventions?

• Does your company have policies that ensure all

workers are provided holidays and leave to which they

are legally entitled?

In addition to the questions above, the suppliers are asked to

provide relevant policies, whether they are certified by

renowned certification organizations like ISO, FPAL, etc. If they

are not, additional information is requested.

Code of conduct

SeaBird Exploration has developed its own Code of Conduct,

which is available on our website. Our Purchase Orders (PO)

refer to this published Code of Conduct and by accepting our

orders, our suppliers also accept our Code of Conduct.

Audits

SeaBird have a system in place to conduct regular audits of our

suppliers. In 2023, four companies were audited, one vendor,

two manning agencies and one agent. There were no findings

related to the purpose of the Transparency Act

Data from 2023

In 2023, the team identified 193 unique suppliers from 21 different

countries. The different countries are listed below along with

their scores in different human rights indexes. The amount of

money spent in the different countries are also listed, and the

number of suppliers in the different countries.

Country

Freedom

House

HDI

CPI

Unified

value

(USD)

Number of

companies

Australia

0.951

9 563

Bulgaria

0.795

20 876

Canada

0.936

3 000

Cyprus

0.896

300 290

Czech

Republic

0.889

38 515

Denmark

0.948

76 519

Finland

100

0.940

18 857

France

0.903

362 308

Germany

0.942

212 678

Greece

0.887

216

India

0.633

897 084

Italy

0.895

24 557

Malaysia

0.803

880 064

The

Netherlands

0.941

1 943

Norway

100

0.961

2 941 560

Poland

0.876

37 255

Singapore

0.939

2 222 854

Sweden

100

0.947

174

UAE

0.911

23 141

0.929

1 874 019

USA

0.921

1 438 227

*)https://freedomhouse.org/countries/freedom-world/scores

**)https://hdr.undp.org/data-center/human-development-

index#/indicies/HDI

***)https://www.transparency.org/en/cpi/2022

As SeaBird’s business is part of a highly technical industry, most

of the suppliers either deliver spare parts or technical services on

board the vessels. These parts or services are very specialized

and there are few to none alternatives, Regardless, they are

part of the screening process as outlined earlier. On the

feedback of the questionnaire, all suppliers have responded

satisfactorily, and control both themselves and their own

suppliers. So far, the team have received feedback from 45 of

the suppliers. Unfortunately, not all suppliers reply, even after

several reminders. Numbers of delayed feedback have

decreased in the last months.

This is the second year SeaBird reports on the transparency act,

unfortunately the company started quite late in 2022 sending

out the questionnaire, implying that for example the groups

activity in Egypt ended before this work started. Identifying

Egypt as the country among the suppliers with the highest risk for

human right violations, this should have been recognized earlier.

7. Challenges faced

The main challenge encountered has been to receive

feedback on questionnaires in a timely manner. The nature of

SeaBirds operation can be hectic, and suppliers need to be

reminded to return the questionnaire. Some of the suppliers are

very specialized, and without a real competitor, and can

therefore permit to omit feedback. However, as more and more

companies are in the same situation, standardized

questionnaires should be considered developed, as this can be

a time-consuming exercise.

As SeaBird Exploration is a small company with few employees,

the handling of input or actions to be taken to control our

suppliers is quite challenging. Efforts are being made to involve

a major part of the organization in order to seek the needed

information from our suppliers.

8. Solutions to overcome challenges

For the group to overcome the identified challenges, more

involvement from the entire SeaBird Exploration organization has

been needed. This has had a positive effect where the

organization has a deeper understanding of the necessity to

control the suppliers.

9. Successes achieved

It was difficult to identify any successes in the implementation,

both because the compant had difficulties in getting feedback

from the suppliers, and also, because those they did receive

feedback from, report that their policies follow the intention of

the transparency act. As vendors have gotten more familiar with

Annual Report 2023 Transparency Act 22

the requirements, SeaBird do see that a number of replies have

gone up, but they are still lacking relevant information which

requires additional follow-up from SeaBird side.

10. Improved supply chain transparency

Transparency plays a crucial role in risk mitigation by providing

a clear view of the supply chain. Businesses can proactively

identify vulnerabilities like single-source dependencies, or

geopolitical risks. Armed with this information, companies

develop contingency plans, diversify suppliers, and build

resilience against disruptions such as natural disasters, trade

disputes, or supplier bankruptcies.

Ethical and sustainable practices are promoted through supply

chain transparency. Compliance with labor standards,

environmental regulations, and responsible sourcing principles

can be verified. Understanding the conditions under which

products are manufactured empowers organizations to ensure

fair wages, safe working conditions, and environmentally

responsible operations. Furthermore, transparency facilitates the

identification of potential human rights abuses, promoting social

responsibility throughout the supply chain.

Improved transparency leads to increased efficiency in supply

chain operations. Insight into production cycles, transportation

routes, and inventory levels enables better planning and

optimization. Identifying areas of inefficiency, such as excess

inventory or underutilized transportation capacity, allows for

corrective actions. Moreover, closer collaboration with suppliers

fosters improved communication and coordination,

streamlining processes and reducing costs.

Transparent supply chains simplify regulatory compliance.

Accurate and auditable records regarding product origins,

certifications, and adherence to safety and quality standards

aid in meeting stringent regulations. Proactive identification and

resolution of non-compliance issues minimize the risk of fines or

penalties while demonstrating commitment to regulatory

frameworks.

In summary, improved supply chain transparency empowers

businesses to make informed decisions, mitigate risks, improve

operational efficiency, promote sustainability, and build trust

with clients. By effectively addressing challenges and adapting

to market demands, organizations gain a competitive

advantage in today's globalized and socially conscious

marketplace.

11. Increased efficiency in operations

Improved efficiency in operations encompasses various aspects

that contribute to streamlining processes, optimizing resource

utilization, and eliminating wasteful activities within the supply

chain. Supply chain transparency plays a vital role in achieving

these efficiencies.

Transparency fosters closer collaboration and communication

with suppliers. By sharing information, organizations can work

closely with suppliers to synchronize activities, improve lead

times, and reduce delays. Strong supplier relationships facilitate

faster response times, ensure reliable supply, and enable

efficient problem-solving when issues arise.

Through supply chain transparency, companies can identify

and optimize processes. By visualizing the flow of information

and cash across the supply chain, organizations can identify

areas of inefficiency and implement process improvements.

Streamlining processes reduces lead times, eliminates waste,

minimizes errors, and improves overall productivity.

Transparent supply chains provide visibility into transportation

routes, modes, and costs. This information allows businesses to

optimize transportation logistics, choose the most efficient

routes, and consolidate shipments when possible. Efficient

transportation planning minimizes transit times, reduces fuel

consumption, optimizes capacity utilization, and lowers

transportation costs.

Transparency is often achieved through the integration of digital

technologies, such as supply chain management systems, real-

time tracking tools, and data analytics platforms. These

technologies enable seamless information sharing, automation

of manual tasks, and data-driven insights. By leveraging

technology, organizations can streamline operations, reduce

errors, and improve overall efficiency.

By focusing on these aspects and leveraging the benefits of

supply chain transparency, businesses can optimize their

operations, reduce costs, improve customer satisfaction, and

gain a competitive edge in the market.

The benefits of improved supply chain transparency align with

the objectives of transparency acts and regulations.

Transparency acts are legislative measures implemented by

governments to promote greater visibility and accountability

within supply chains. These acts aim to ensure that businesses

operate ethically, maintain responsible practices, and provide

accurate information to clients.

Transparency acts often emphasize the importance of ethical

and sustainable practices within supply chains. Improved

transparency enables businesses to verify compliance with labor

standards, environmental regulations, and responsible sourcing

principles. By providing visibility into supply chain operations,

these acts promote the adoption of fair wages, safe working

conditions, and environmentally responsible practices.

Transparency acts aim to empower clients by providing them

with accurate information about the products they purchase.

Supply chain transparency enables businesses to trace and

communicate product origins, manufacturing processes, and

other relevant details to clients. This information builds trust,

enhances client confidence, and enables them to make

informed choices based on their values.

Transparency acts encourage businesses to identify and

mitigate risks within their supply chains. Improved transparency

provides companies with a clear view of potential vulnerabilities

and disruptions, such as single-source dependencies or

environmental risks. By proactively addressing these risks,

businesses can enhance their resilience, reduce the impact of

disruptions, and ensure the continuity of their operations.

These acts often require businesses to comply with specific

reporting and disclosure requirements. Improved supply chain

transparency facilitates compliance by providing accurate and

Annual Report 2023 Transparency Act 23

auditable records of activities, certifications, and compliance

with safety and quality standards. By promoting transparency,

these acts ensure that businesses adhere to regulatory

frameworks and maintain accountability.

Supply chain transparency contributes to operational

efficiency, which is aligned with the goals of transparency acts.

By providing visibility into inventory levels, demand patterns, and

production schedules, transparency enables businesses to

optimize processes, reduce waste, and streamline operations.

These efficiencies help companies comply with regulations,

minimize costs, and enhance overall performance.

In summary, the benefits of supply chain transparency closely

align with the goals and objectives of transparency acts. By

promoting ethical practices, empowering clients, mitigating

risks, ensuring compliance, and optimizing processes, supply

chain transparency contributes to the overarching objectives of

transparency legislation.

12. Enhanced client trust

Transparency acts play a significant role in enhancing client trust

and confidence in companies. When businesses prioritize supply

chain transparency and comply with relevant legislation, it

fosters trust among clients. Here's how transparency acts

contribute to building enhanced client trust:

Firstly, transparency acts require businesses to provide clients

with access to information about the products they purchase.

This includes details about sourcing, manufacturing processes,

and relevant certifications or standards followed. By providing

this information, businesses empower clients to make informed

decisions based on their values and preferences. Access to

reliable and accurate information builds confidence in the

products they buy and the companies they support.

Clients increasingly expect businesses to operate with social

responsibility and ethical practices. Transparency acts

encourage companies to disclose their efforts in these areas,

such as fair labor practices, responsible sourcing, and

environmental sustainability. When clients see that a company

is transparent about its commitment to these values, it

establishes trust and reassurance that the business is operating

ethically and responsibly.

Transparency acts hold companies accountable for their

actions and require them to disclose relevant information about

their supply chains. When businesses comply with these

regulations, they demonstrate their commitment to

transparency and accountability. This commitment reassures

clients that the company is reliable and trustworthy, as it is willing

to be transparent and open about its operations.

Transparent supply chains create a foundation for building long-

term relationships with clients. When businesses openly share

information about their supply chain practices and demonstrate

responsible behavior, it establishes a sense of trust and loyalty

among clients. Transparent companies are more likely to attract

and retain customers who value transparency and socially

responsible practices, leading to stronger and more sustainable

customer relationships.

In summary, transparency acts contribute to enhancing client

trust by ensuring businesses provide accurate information,

demonstrate social responsibility, and establish accountability.

By embracing transparency and meeting the requirements of

these acts, companies can build a strong foundation of trust

with clients, leading to increased customer loyalty, and a

competitive advantage in the market.

13. Potential for increased sales and

revenue

Improved supply chain transparency, facilitated by

transparency acts, has the potential to positively impact sales

and revenue for businesses. Here's how increased transparency

can contribute to sales growth and revenue generation:

Firstly, many clients today actively seek out companies that

demonstrate transparency and ethical practices. By being

transparent about their supply chains, businesses can attract a

growing segment of clients who prioritize transparency,

sustainability, and social responsibility. This client preference for

transparent companies can lead to increased sales as clients

choose products from companies they trust and perceive as

responsible.

Supply chain transparency can provide a competitive

advantage in the market. When businesses are transparent

about their sourcing, manufacturing processes, and adherence

to regulations, it differentiates them from competitors.

Transparent companies are often seen as more trustworthy,

credible, and socially responsible, which can give them an

edge in customer acquisition and retention. This competitive

advantage can translate into increased market share, higher

sales, and revenue growth.

Transparency acts reflect the evolving expectations of clients.

As these regulations become more prevalent and companies

comply with them, clients come to expect transparency as a

standard practice. By meeting these expectations and

providing the transparency clients desire, businesses can attract

and retain customers who value such practices. Meeting client

expectations leads to customer satisfaction, positive word-of-

mouth recommendations, and increased sales.

When companies are transparent about their supply chains,

they demonstrate a commitment to integrity, ethical practices,

and client well-being. This transparency fosters a positive

reputation, which can attract new customers and reinforce

loyalty among existing customers. A strong reputation positively

influences purchase decisions, resulting in increased sales and

revenue.

Transparency acts often extend beyond national borders, with

global regulations focusing on supply chain transparency. By

embracing transparency and complying with these regulations,

businesses can expand their reach into new markets.

Transparent supply chains can help overcome barriers to entry

and gain the trust of clients in new regions, driving sales growth

and revenue expansion.

Supply chain transparency can also have an impact on investor

confidence. Investors increasingly consider environmental,

Annual Report 2023 Transparency Act 24

social, and governance (ESG) factors when making investment

decisions. Companies with transparent supply chains are

perceived as lower-risk and more attractive investments.

Enhanced investor confidence can result in increased funding,

capital, and resources that contribute to business growth and

revenue generation.

It is important to note that the actual impact on sales and

revenue will depend on various factors such as industry, target

market, competitive landscape, and the effectiveness of

transparency initiatives. However, by embracing transparency

and meeting the expectations of clients and stakeholders,

businesses can position themselves for increased sales and

revenue opportunities.

14. Recap of key points

In conclusion, SeaBird has a system in place to identify suppliers

and risk-assess the potential exposure to companies violating

human rights. The safety management system also provides the

opportunity for logging, follow-up and addressing any breach

of our code of conduct. Further and more diligent work is

ongoing to secure quality feedback from our suppliers, and

through this process, employees have a higher awareness of the

objective of the Transparency Act.

15. Future implications of the act

Going forward, the company believe that the focus from

Norwegian companies, will make it easier to have questionnaire

returned from suppliers, if they are more used to receive them.

The major EU companies have good procedures in place now,

and we expect minor EU companies and other regions to follow

in the future.

16. Recommendations for advances

Considerable effort is invested in completing forms from

companies with whom SeaBird collaborates with suppliers, as

well as in following up on responses from our own suppliers. It

would be highly advantageous if government officials could

develop a standardized form, streamlining these processes and

promoting efficient feedback.

Annual Report 2023 Management Report 25

Management Report

This Management Report is prepared for Seabird Exploration PLC

(alone or together with its subsidiaries referred to as "Seabird" or

"Company" or "Group").

1.1 Operating activities

2023 was a year of high activity with full utilisation on both

vessels. During the year the Company managed to secure new

long-term contract for one of its vessels and to keep

employment of both vessels through the year.

The Eagle Explorer completed a 2D survey in India in June and

started a Source project in Malaysia in direct continuation.

Thereafter the vessel completed scheduled 5-yearly Class

renewal and continued with a 2D project on Malaysia which

was completed on end February 2024.

The Fulmar Explorer was fully committed throughout the year

and has secured contract commitment until end August 2025.

Seabird’s majority of shares in Green Minerals AS were

distributed to its shareholders on 25 January 2023. As at 31

December 2022 Green Minerals AS was recognised as

discontinued operation.

1.2 Seismic services outlook

During 2023 the demand remained high with some normal

seasonal fluctuations and towards to the end of year the market

stabilized.

In the seismic market, SeaBird operates in two segments: 2D and

OBN source. OBN is primarily related to increased recovery from

producing fields and seismic spending the last couple of years

has largely been allocated to improved oil recovery (IOR) from

producing fields as well as near-field exploration.

This has resulted in a commensurate increase in source vessel

demand related to ocean bottom seismic surveys. The ocean

bottom seismic (OBS) market is still expected to be a core

market for the company and is therefore less sensitive to

fluctuations in oil price than conventional 2D and 3D seismic.

Contract prices are improving compared to previous years and

expected to increase gradually, especially if 2D activity

continues to increase, with the majority of the relevant global

fleet being allocated either to OBN source or 3D. The company

has an upgraded modern, versatile, and competitive fleet of 2

owned vessels plus the ability to outfit additional further vessels.

1.3 Quality, Health, Safety, and

Environment

We are guided by our commitment to quality, health, safety,

and environment (QHSE).

SeaBird’s operating management system is central to the

company’s performance evaluation process and is fully

endorsed and supported by senior management through the

company’s policies.

In addition to quality, the system ensures safe operations. The

company had none Loss time incidents (LTI) in 2023.

SeaBird’s detailed analysis of past performance ensures that

continual improvements are being made to QHSE procedures

and also ensures that set QHSE targets for 2023 are achievable.

Focal points for 2024 is to continue to streamline operations

without compromising on health, safety, environment, and

quality.

Our management system is certified to ISO 14001:2015

(environmental management systems), ISO 9001:2015 (quality

management systems) and ISO 45001:2018 (occupational

health and safety management systems).

All SeaBird vessels comply with the requirements of the

International Safety Management code and the Marine Labor

Convention 2006.

The company continues to work actively on minimizing its

impact on the environment. We strive to achieve the highest

levels of environmental awareness and operational

competency. Continual improvement is achieved by

developing ever more stringent internal environmental plans

and targets annually. No environmental incidents were

recorded in 2023.

Established QHSE processes ensures the company:

✓ Provides a safe, healthy work environment both

offshore and onshore;

✓ Continuously improves operational performance and

quality;

✓ Deliver its services promptly and cost effectively

✓ Considers the environment in all aspects of its

operations

1.4 Transparency act

The Transparency Act came into effect in Norway on July 1,

2022, and requires several Norwegian companies to have a

relationship with how their business operations may impact

fundamental human rights and decent working conditions. The

background for this law is a clear expectation from the

authorities, society, and clients that businesses should act with

increased responsibility throughout their value chain.

SeaBird Exploration, as an ISO-certified company has already

developed routines to identify and manage risk in our day-to-

day operations, where negative impacts on human rights and

the environment in supply chains are identified. We have

developed a questionnaire, where among others forced labour,

child labour and other human rights violations, as well as

environmental risks and impacts are addressed. One of the

challenges encountered is to have the questionnaires returned

in a timely manner, but so far we have not identified any

Annual Report 2023 Management Report 26

negative impacts on neither human rights nor environment.

SeaBird Exploration has a system in place to address and

handles any non-compliance to our code of conduct. We also

carry out in-house audits to verify the compliance of our

suppliers (in 2023, 4 [four] companies where audited). In 2023,

we have used 193 different suppliers, and we have received

feedback from 45 (forty-five) of these. Please see the separate

transparency act section for more information.

1.5 Interaction with the capital market

25 January 2023, the company completed the distribution of its

shares in Green Minerals AS to its shareholders.

1.6 Financial calendar

6 June 2024

Annual General Meeting

15 May 2024

First quarter report

15 August 2024

Half-year report

13 November 2024

Third quarter report

20 February 2025

Fourth quarter report

30 April 2025

Annual report 2024

1.7 20 largest shareholders’ table

Investor

No. of shares

31.12.2023

% of total

Mh Capital As

10,159,676

12.6%

Anderson Invest As

6,098,626

7.6%

Alden As

5,577,219

6.9%

Grunnfjellet As

5,075,301

6.3%

Storfjell As

3,255,775

4.0%

Whiterock Capital As

2,500,000

3.1%

Myrseth

2,436,999

3.0%

Grønland

2,062,759

2.6%

Europa Link As

1,887,129

2.3%

Sigstad

1,810,000

2.2%

North Sea Group As

1,760,000

2.2%

Kfs As

1,210,000

1.5%

Hubris Industrier As

1,208,333

1.5%

Nordnet Livsforsikring As

1,060,028

1.3%

The Bank Of New York

Mellon Sa/Nv

1,006,096

1.3%

F Storm As

953,122

1.2%

Håland

850,000

1.1%

Mp Pensjon Pk

679,816

0.8%

Ps Investments As

655,344

0.8%

Blueberry Capital As

647,830

0.8%

Total number owned by top 20

50,894,053

63.2%

Total number of shares

80,476,271

100.00%

1.8 Financial review

The consolidated financial statements of SeaBird Exploration Plc

as well as the separate financial statements for the parent

company are prepared in accordance with International

Financial Reporting Standards as adopted by the European

Union. Revenues were USD 34.6 million in 2023 compared to USD

20.2 million in 2022. Vessel utilization increased from 39% in 2022

to 90% in 2023. Most of the revenues were related to contracts

with oil companies and other seismic companies. Cost of sales

was USD 19.1 million in 2023 (USD 19.0 million in 2022). SG&A was

USD 4.0 million in 2023, broadly in line with 2022 of USD 3.9 million.

Depreciation and amortization were USD 6.3 million in 2023 (USD

7.1 million in 2022). Total impairments were nil in 2023 (USD 1.5

million in 2022); the impairments in 2022 were primarily related to

Petrel Explorer that was sold in August the same year. The

company reports a net profit of USD 3.1 million for 2023 (loss of

USD 11.6 million in 2022). Capital expenditures were USD 2.7

million in 2023, down from USD 3.9 million in 2022; the capex for

the year 2023 is mainly related to the drydocking of Eagle

Explorer during the year. Cash and cash equivalents at the end

of the year were USD 2.2 million (USD 0.9 million in 2022). Net cash

from operating activities was USD 3.8 million in 2023 (negative

USD 17.0 million in 2022). The company’s term loan facility is

secured with 1st priority mortgage on Eagle Explorer and Fulmar

Explorer. As of 31 December 2023, the balance of the facility was

USD 13.5 million. Net interest-bearing debt was USD 14.1 million

as per 31 December 2023 (USD 15.4 million as per 31 December

2022). The Group refinanced its debt during 2023 and the new

loan facility expires on 30 June 2026. The company has financial

risk management objectives and policies to handle cash flow,

liquidity, and credit risk, which includes frequent forecasting,

review by management and board and by holding sufficient

cash reserves to fund the company’s operations. The company

does not hedge currency, credit, bunker, or other forms of risk.

Please see notes 3 and 31 in the Consolidated Financial

Accounts for further details on the company’s risk management

policies and key risk exposures.

1.9 Significant events during the year

On 12 January 2023, the company announced distribution of

shares in Green Minerals.

On 31 January 2023, the company announced contract

extension.

On 10 May 2023, the company announced contract award for

Eagle Explorer.

On 9 June 2023, the company announced it has signed a term

sheet for the refinancing of the Company's term loan and

guarantee facilities. The full loan amendment agreement was

signed in July 2023.

On 14 July 2023, the company announced contract award for

Fulmar Explorer.

On 12 September 2023, the company announced contract

extension and a new contract award for Eagle Explorer.

1.10 Subsequent events

The most significant events occurred after the date of the

statement of the financial position include:

Annual Report 2023 Management Report 27

On 18 April 2024, the parent Company announced that in the

extraordinary general meeting had been approved the

distribution of NOK 0.25 per share to its shareholders, which will

be effected through the reduction of share premium.

On 23 February 2024, the parent Company announced that the

Board of Directors has proposed a cash dividend of NOK 0.25

per share.

For the full list of subsequent events please refer to Note 33 of

the consolidated financial statements.

1.11 Corporate Governance

Our corporate governance policy guides our operations and

culture. The company’s corporate governance policies are set

out in the corporate governance section of this annual report.

1.12 Going concern

The company’s accounts have been prepared on the basis of

a going concern assumption. Please refer to note 2.1 in the

consolidated financial statements.

1.13 Group Outlook

The company sees continued tendering activity in the OBN

source segment with clients looking for longer commitments and

some interesting 2D prospects.  Activity level is paired with longer

contract durations assumed to be a result of the general energy

situation and oil price. The company believes oil and gas will

remain an important part of the energy mix in the foreseeable

future.

Focus on increased oil recovery and near field developments

will continue to be an important demand driver for the

company’s OBN source services. OBN source is expected to

form the base for the company’s seismic offering going forward

and with quality tonnage, such as the “Eagle Explorer” and the

“Fulmar Explorer”, the company is in a good position to secure

consistent high utilization.

2D remains a cost-efficient exploration method, with national

energy security in select regions as the main driver. Current 2D

tendering activity attests to this.

SeaBird`s response to take advantage of this change in market

dynamics is to consolidate as much high-end capacity as we

can and thereby increase our market share. SeaBird’s

equipment pool enhances SeaBird’s ability to capitalize on its

seismic know-how and market access by equipping third party

vessels on flexible charters. SeaBird is in a unique position to offer

both 2D and OBN source and is therefore able to take

advantage of the higher utilization potential of OBN source,

while at the same time capitalizing on the higher earnings

potential in the niche 2D market.

1.14 Deviation from Q4 2023 report

The group's annual consolidated financial statement has been

adjusted compared to the unaudited quarterly results

announced on 24 February 2024. The adjustments mainly reflect

ECL provisions, non-cash currency adjustments, reclassifications

and tax costs. The total effect is a reduced net profit of USD 3.6

million in the Company’s consolidated statement of income

and USD 2.0 million in reduced net assets for 2023.

1.15 Resolution

The financial statements for the company have been prepared

in accordance with International Financial Reporting Standards,

as adopted by the European Union (EU). They were prepared

under the historical cost convention, except financial

investment and share options that is held at fair value through

profit and loss. Also, the Financial Statements have been

prepared on a going concern basis.

The company’s net profit for 2023 is USD 3.1 million. The profit for

the year will be transferred to the Group’s reserves.

1.16 Financial risk and instruments

SeaBird’s activities are exposed to a variety of financial risks:

market risk (including currency risk, interest rate risk and price

risk), credit risk and liquidity risk. The Group’s overall risk

management focuses on the unpredictability of financial

markets and monitors and controls risks with a potential

significant negative effect for the Group and evaluates to

minimize the risks if the cost of doing so is acceptable. For further

information please see Note 3 and 31 in the Consolidated

Financial Statement.

1.17 Group composition

With reference to Note 19 in the Consolidated Financial

Statement

Company

Shareholding

and voting rights

Aquila Explorer Inc.

100%

Biliria Marine Company Limited

100%

GeoBird Management AS

100%

Green Energy Group AS

100%

Harrier Navigation Company Limited

100%

Hawk Navigation Company Limited

100%

Munin Navigation Company Limited

100%

Oreo Navigation Company Limited

100%

Raven Navigation Company Limited

100%

Sana Navigation Company Limited

100%

Seabed Navigation Company Limited

100%

SeaBird Crewing Mexico S. DE R.L. DE C.V.

100%

SeaBird Exploration Americas Inc.

100%

SeaBird Exploration Asia Pacific PTE. Ltd.

100%

SeaBird Exploration Crewing Limited

100%

SeaBird Exploration Cyprus Limited

100%

SeaBird Exploration Finance Limited

100%

SeaBird Exploration FZ-LLC

100%

SeaBird Exploration Multi-Client Limited

100%

SeaBird Exploration Nigeria Ltd.

100%

SeaBird Exploration Norway AS

100%

SeaBird Exploration Private Limited

26%

SeaBird Exploration Shipping AS

100%

Annual Report 2023 Management Report 28

SeaBird Exploration Vessels Limited

100%

SeaBird Seismic Mexico S. DE R.L. DE C.V.

100%

Susco AS

100%

1.18 Dividend

No dividend was distributed for the years 2022 and 2023. Please

see Subsequent events for more information on capital

distribution.

1.19 Share capital

There are no any restrictions in exercising of voting rights. Please

be referred to Note 15 in the Consolidated Financial Statement

for further information.

1.20 Board of Directors

The Board of Directors consists of Ståle Rodahl (Executive

Chairman of the board), Øivind Dahl-Stamnes (Director), Hans

Christian Anderson (Director), Odd Sondre Svalastog Helsing

(Director) and Sverre Strandenes (Director). Please be referred

to Note 30 for further information.

1.21 Committees

The audit committee has responsibility for overseeing financial

reporting and related internal controls, risk, independent and

internal auditors, and ethics and compliance. The Group’s audit

committee consist of:

• Ståle Rodahl – Executive Chairman of the board

• Sverre Strandenes – Director of the board

The Nominating committee members work to evaluate the

characteristics and performance of board members and are

responsible for selecting the best candidates for each seat on

the board. The Group’s nomination committee consist of:

• Stig Myrseth

• Per Øyvind Berge

• Hans Jan Henry Anderson

1.22 Internal control

The Group operates an internal control system and procedures,

the adequacy of which is evaluated by the Board of Directors

and by an independent Audit Committee which was

established by the Board of Directors. The operation of the

internal control system is intended to manage the risks of not

achieving business objectives and ensure to a reasonable

extent the proper management of the risks of its financial and

operational systems Group. The internal control system includes

procedures aimed at detection and prevention of errors,

omissions and/or fraud which they could cause material

inaccuracies in the preparation of the Group's financial

statements. The adequacy of the internal control system ensures

the validity of financial data and protection against material

errors in the presentation of the Group's results.

Furthermore, the Group performs annual internal audit; Internal

audit to control compliance towards requirements in; ISO 9001,

ISO 14001, ISO 45001, ISM code, ISPS code, MLC and

requirements of the Management System.

1.23 Independent Auditors

The independent auditors RSM Cyprus Ltd have expressed their

willingness to continue in office as the Company’s auditors. A

resolution authorizing the Board of Directors to appoint and fix

their remuneration will be proposed at the next AGM.

Ståle Rodahl, Executive Chairman

Hans Christian Anderson, Director

Øivind Dahl-Stamnes, Director

Sverre Strandenes, Director

Odd Sondre Svalastog Helsing, Director

The board of directors Seabird Exploration PLC

Date 30 April 2024

Annual Report 2023  Consolidated Financial Statement  29 
 
 
Consolidated Financial Accounts 
 
Consolidated Financial Accounts .............................................. 29 
Consolidated statement of income ........................................... 30 
Consolidated statement of comprehensive income ................ 31 
Consolidated statement of financial position ............................ 32 
Consolidated statement of financial position ............................ 33 
Consolidated statement of changes in equity .......................... 35 
Consolidated statement of cash flow ........................................ 36 
Notes to the consolidated financial statements ....................... 37 
General information ........................................................ 37 
Material accounting policy information ........................ 37 
1  Basis of preparation ......................................................... 37 
2  Adoption of new or revised standards and 
interpretations .................................................................. 39 
3  Consolidation ................................................................... 39 
4  Segment reporting ........................................................... 40 
5  Foreign currency translation ........................................... 40 
6  Interests in joint operations and associates ................... 41 
7  Property, plant and equipment ...................................... 41 
8  Intangible assets .............................................................. 42 
9  Impairment of non-financial assets ................................ 43 
10  Non-current assets held for sale...................................... 43 
11  Financial assets and financial liabilities .......................... 43 
11.1  Financial assets - classification ........................................ 43 
11.2  De-recognition of financial assets .................................. 45 
11.3  Financial assets:  impairment and  credit  loss  allowance 
for ECL  .......................................................................................... 45 
11.4  Reclassification of financial assets .................................. 46 
11.5  Financial assets write off .................................................. 46 
11.6  Financial liabilities measurement categories ................. 46 
11.7  De-recognition of financial liabilities .............................. 46 
12  Inventories ........................................................................ 46 
13  Cash and cash equivalents ............................................ 47 
14  Share capital .................................................................... 47 
15  Current and deferred tax ................................................ 47 
16  Employee benefits and share based payments ........... 47 
17  Provisions .......................................................................... 48 
18  Revenue recognition ....................................................... 48 
19  Leases ............................................................................... 50 
20  Dividend distribution ........................................................ 51 
21  Comparatives .................................................................. 51 
22  Contingent assets and liabilities ..................................... 51 
23  Contract costs .................................................................. 51 
24  Costs to fulfil a contract .................................................. 52 
Risk factors and financial risk management .................. 52 
1  Financial risk factors ......................................................... 52 
2  Other risk factors .............................................................. 53 
3  Fair value estimation ........................................................ 54 
Critical accounting estimates and judgments .............. 54 
Segment information ...................................................... 56 
Revenue ........................................................................... 56 
Property, plant and equipment ..................................... 57 
Income tax expense ....................................................... 59 
Multi-client library ............................................................ 59 
Trade receivables and contract assets ......................... 60 
Other current assets ........................................................ 60 
Asset held for sale ............................................................ 60 
Inventories ........................................................................ 61 
Cash and bank balances ............................................... 61 
Share capital and share options .................................... 61 
Trade and other payables .............................................. 62 
Provisions and other liabilities ......................................... 63 
Interest bearing loans and borrowings .......................... 63 
Subsidiaries and associates within the Group ............... 64 
Other financial items, net ............................................... 66 
Other income (expenses), net ....................................... 66 
Expenses by nature ......................................................... 67 
Audit expenses ................................................................ 67 
Employee benefit expense............................................. 68 
Finance expense ............................................................. 68 
Earnings per share ........................................................... 68 
Dividends ......................................................................... 69 
Commitments and contingencies ................................. 69 
Leases ............................................................................... 69 
Related-party transactions ............................................. 70 
Financial instruments ....................................................... 71 
Long-term investments .................................................... 74 
Subsequent events .......................................................... 74 
Performance measurement definitions ......................... 75 
Operating environment .................................................. 75 
 
 
   

Annual Report 2023 Consolidated Financial Statement 30

Consolidated statement of income

Year ended 31 December

All figures in USD 000's

Note

2023

2022

Revenues

5, 6

34,635

20,164

Cost of sales

-19,062

-19,036

Selling, general and administrative expenses

-3,969

-3,889

Other income (expenses), net

10, 17, 21

-2,939

1,485

Earnings before interest, tax, depreciation and amortization (EBITDA)

8,665

-1,276

Gain/(loss) on sale of property, plant and equipment

260

Depreciation

7, 9

-6,274

-6,960

Amortization

-54

-139

Impairment

-1,502

Earnings before interest and taxes (EBIT)

2,411

-9,617

Finance income

Finance expense

-2,588

-1,854

Share of net profit/(loss) of associates

-26

224

Other financial items, net

19, 20

3,539

-475

Profit/(loss) before income tax

3,399

-11,712

Income tax

-272

107

Profit/(loss) continuing operations

3,127

-11,605

Net profit/(loss) discontinued operations

-1,256

Profit/(loss) for the period

3,127

-12,861

Profit/(loss) attributable to continuing operations

Shareholders of the parent

3,127

-11,605

Non-controlling interests

Profit/(loss) attributable to discontinued operations

Shareholders of the parent

-639

Non-controlling interests

-617

Earnings per share

0.04

-0.21

From continuing operations

0.04

-0.20

From discontinued operations

-0.01

Annual Report 2023 Consolidated Financial Statement 31

Consolidated statement of comprehensive income

Year ended 31 December

All figures in USD 000's

Note

2023

2022

Profit/(loss)

3,127

-12,861

Other comprehensive income

Exchange difference arising on the consolidation of foreign companies financial

accounts

Total other comprehensive income, net of tax

Total comprehensive income

3,127

-12,861

Total comprehensive income attributable to:

Shareholders of the parent

3,127

-12,244

Non-controlling interests

-617

Total

3,127

-12,861

Annual Report 2023 Consolidated Financial Statement 32

Consolidated statement of financial position

As of 31 December

All figures in USD 000's

Note

2023

2022

ASSETS

Non-current assets

Property, plant and equipment

39,453

42,982

Multi-client library

Investment in associates and other investments

19, 32

327

224

Total non-current assets

39,780

43,260

Current assets

Inventories

1,125

643

Trade receivables

9,642

12,428

Other current assets

1,258

6,119

Restricted cash

Cash and cash equivalents

2,176

851

Total current assets

14,243

20,098

Assets classified as held for sale

175

Assets classified as held for distribution

2,333

TOTAL ASSETS

54,023

65,866

Annual Report 2023 Consolidated Financial Statement 33

Consolidated statement of financial position

As of 31 December

All figures in USD 000's

Note

2023

2022

EQUITY

Shareholders' equity

Paid in capital

36,944

Currency translation reserve

-395

Share options granted

153

595

Retained earnings

-9,899

-8,404

Total equity attributable to the parent

26,803

28,740

Non-controlling interests

1,075

TOTAL EQUITY

26,803

29,815

LIABILITIES

Non-current liabilities

Loans and borrowings non-current

13,115

Total non-current liabilities

13,115

Current liabilities

Trade payables

3,821

9,051

Contract liability

469

1,467

Other payables

3,124

7,773

Provisions and other liabilities

2,249

331

Loans and borrowings current

3,119

16,287

Tax liabilities

1,323

1,000

Total current liabilities

14,105

35,909

Liabilities classified as held for distribution

142

TOTAL LIABILITIES

27,220

36,051

TOTAL EQUITY AND LIABILITIES

54,023

65,866

Annual Report 2023 Consolidated Financial Statement 34

On 30 April 2024, the Board of Directors of SeaBird Exploration Plc authorized these consolidated financial statements for issue.

Ståle Rodahl – Executive Chairman

Hans Christian Anderson – Director

Øivind Dahl-Stamnes – Director

Sverre Strandenes – Director

Odd Sondre Svalastog Helsing – Director

Annual Report 2023 Consolidated Financial Statement 35

Consolidated statement of changes in equity

All figures in USD 000's

Paid in

capital

Currency

translation

reserve

options

granted

Retained

earnings

Non-

controlling

intrests

Total

equity

Equity as of 1 January, 2022

45,492

-407

192

-17,861

930

28,346

Profit/(Loss)

-12,244

-617

-12,861

Other comprehensive income

Total comprehensive income

-12,244

-617

-12,861

Share issue

12,651

Share premium reduction

-16,233

16,233

Share premium reduction - Green Minerals AS

-4,966

4,966

Transactions with non-controlling interest

572

762

1,334

Share options granted/cancelled

403

Other equity transactions

-69

-57

Total contributions by and distributions to owners

-8,548

403

21,702

762

14,331

Equity as of 31 December 2022

36,944

-395

595

-8,404

1,075

29,815

Profit/(Loss) for the year

3,127

Other comprehensive income for the year

Total comprehensive income for the year

3,127

Distribution of Green Minerals AS

-4,610

Deconsolidation of Green Minerals AS

-240

-1,075

-1,315

Net share options movement

-202

Other equity transactions

-12

Total contributions by and distributions to owners

-442

-4,622

-1,075

-6,139

Equity as of 31 December 2023

36,944

-395

153

-9,899

26,803

Annual Report 2023 Consolidated Financial Statement 36

Consolidated statement of cash flow

Year ended 31 December

All figures in USD 000's

Note

2023

2022

Cash flows from operating activities

Profit/(loss) before income tax

3,399

-11,712

Adjustments for

Depreciation, amortization and impairment

7, 9, 28

6,327

8,601

Movement in provision

1,430

Loss /(gain) from disposal of fixed assets

-74

-260

Unrealized exchange (gain)/loss

347

482

Interest expense on financial liabilities

2,588

1,588

Other items

-2,927

(Increase)/decrease in inventories

-482

543

(Increase)/decrease in trade receivables, contract assets and restricted cash

5,602

-9,641

Increase/(decrease) in trade payables, contract liability and other payables

-8,038

-6,703

Increase/(decrease) in tax liabilities

323

110

Net cash used in operating activities

8,495

-16,992

Cash flows from investing activities

Capital expenditures

-2,745

-3,895

Proceeds from disposal of PPE

249

9,586

Net cash used in investing activities

-2,496

5,691

Cash flows from financing activities

Net proceeds from issuance of ordinary shares

12,651

Receipts from borrowings

14,200

11,501

Repayment of borrowings

-16,997

-10,606

Interest paid

-1,996

-1,551

Dividend received

119

Net cash from financing activities

-4,674

11,995

Net decrease in cash and cash equivalents

1,325

694

Cash and cash equivalents at beginning of the period, unrestricted

851

157

Cash and cash equivalents at end of the period, unrestricted

2,176

851

Net increase in cash and cash equivalents from discontinued operation

-25

Cash and cash equivalents at beginning of the period in from discontinued

operation, unrestricted

2,155

Cash and cash equivalents at end of the period in discontinued operations,

unrestricted

2,130

Annual Report 2023 Consolidated Financial Statement 37

Notes to the consolidated financial statements

All figures in USD 1.000, if not stated otherwise. The consolidated financial statements and the separate financial statements are an integral

part of the annual financial statements and should be read in conjunction with each other.

1 General information

Seabird Exploration Plc (alone or together with its subsidiaries referred to as “SeaBird” or “company” or “Group”) is a global provider of

marine seismic data for the oil and gas industry. SeaBird specializes in high quality operations within the high end of the 2D and source

vessel market. SeaBird concentrates on contract seismic surveys. The main success criteria for the Group are an unrelenting focus on

quality, health, safety and environment (QHSE), combined with efficient collection of high-quality seismic data.

The company was incorporated in the British Virgin Islands as a limited liability company in 2000. The company was re-domiciled to Cyprus

on 18 December 2009. Seabird has direct ownership in two vessels and the company is listed on Oslo Børs with ticker SBX. The company’s

registered address is at Panteli Katelari 16, Diagoras House floor 7, 1097, Nicosia, Cyprus. The Group main office is located in Bergen

(Norway) with the office address Sandviksbodene 68, 5035 Bergen. SeaBird Exploration Plc is tax resident in Norway and registered in the

corporate registers both in Norway and Cyprus.

At 31 December 2023, Seabird’s owned fleet consisted of the seismic vessels “Eagle Explorer” (Eagle) and “Fulmar Explorer” (Fulmar). The

Group sold one non-core vessel, the Petrel Explorer, in August 2022. In addition, the Group has a substantial pool of seismic equipment

which could be operated on third parties’ vessels. At year-end there were no chartered vessels in operation.

The accompanying consolidated and separate financial statements represent the activities of SeaBird for the year ended 31 December

2023 (the “period”). These consolidated and separate financial statements were authorized for issue by the board of directors on 30 April

2024.

2 Material accounting policy information

The accounting policies that are material to the Group are set out below. These policies have been consistently applied to all years

presented in these consolidated financial statements unless otherwise stated.

2.1 Basis of preparation

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards.

(IFRS) as adopted by the European Union (EU) and the requirements of the Cyprus Companies Law, Cap.113. The consolidated financial

statements have been prepared under the historical cost convention, except financial investment and share options that is held at fair

value through profit and loss. The preparation of financial statements also requires the use of assumptions that affect the reported amounts

of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts

of revenues and expenses during the reporting period. Although these estimates are based on management’s best knowledge of current

events and actions, actual results may ultimately differ from those estimates. The areas involving a higher degree of judgment or

complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 4

Critical accounting estimates and judgments.

Going concern assumption

The assessment of going concern relies heavily on the ability of the Group to secure future cash inflows over the going concern assessment

period which extends through to a period of at least one year from the date of approval of the financial statements to meet their liabilities

as they become due. The following steps have been undertaken to allow Management to conclude on the appropriateness of the going

concern assumption:

a. Understand what could cause the Group not to be a going concern

b. Consider the current liquidity position, customer and sector position, market and operational risks and availability of additional

funding if required

c. Board review of the base case forecast produced by management

d. Perform reverse stress tests to assess under what circumstances going concern would become a risk – and assess the likelihood

of whether they could occur

e. Examine other mitigating actions to remedy the stress test scenarios

Annual Report 2023 Consolidated Financial Statement 38

f. Conclude upon the going concern assumption

(a) Understand what could cause the Group not to be a going concern

The potential scenarios which could lead to the Group not being a going concern are:

• Not having sufficient cash to meet liabilities as they fall due and therefore not being able to provide services to its customer base

and meet financing obligations. The main source of operating cash flows for the Group is the securing of employment for its

fleet. As of 31 December 2023 the Group was in a net current asset position of USD 0.1 million.

• A non-remedied breach of the financial covenants of Sparebank 1 SMN bank (Note 18 Interest bearing loans and borrowings)

and failure to obtain a waiver. Under the terms of the agreement this could lead to the outstanding balance becoming due for

immediate repayment. These covenants are:

✓ Minimum fee cash: USD 1 million

✓ Positive working capital excluding current portion of interest-bearing debt

✓ Equity ratio 45 %

(b) Consider the current liquidity position, customer and sector position, market and operational risks and availability of additional

funding if required.

At 31 December 2023 unrestricted cash and cash equivalents amounted to USD 2.2 million, while total current assets amounted to USD

14.2 million.

As at 31 December 2023, the Group had Interest-bearing loans and borrowings of USD 16.2 million, current liabilities of USD 14.1 million and

current liabilities excluding interest bearing debt of USD 11.0 million. As at 31 December 2023, the Group’s total equity amounted to USD

26.8 million, after a net profit of USD 3.1 million for the year.

The general market outlook continued to improve in 2023, with both tendering activity and rate level being higher now than were a year

ago. At the same time the seismic industry has gone through a momentous resetting where the fleet of active vessels has been reduced

by more than 50% and the number of players has been drastically reduced. Following the conversion of Fulmar Explorer in 2021

(completed early 2022) the company is well positioned to take advantage of the strong market. The attractiveness of the Group’s assets

is also reflected in the contracts secured during the year, namely a two year contract for the “Fulmar Explorer” and two contracts for the

“Eagle Explorer”. This has resulted in the best yearly EBITDA result for seven years. The Eagle Explorer is currently available, but given the

leads and discussion the management is confident that she will back on work shortly.

If needed, the company may also attempt to raise liquidity through the stock exchange by utilizing equity market opportunities. This was

successfully applied on two occasions during 2022. The access to the public equity market does not exclude the possibility to dispose of

tangible fixed assets held by the company and delay scheduled investment programs and capital expenditure if required to ensure

additional liquidity. This was also implemented in 2022 through the sale of one non-core vessel with a substantial loan repayment effect.

The management has developed a base case cashflow forecast incorporating the most likely scenarios based on historic data and

contract activity. The following steps were taken by the Board to ensure the most accurate base case budget is prepared:

- The inputs and assumptions used in the base case cashflow forecast were compared to external market sources to ensure

reasonability.

- Inputs and assumptions were challenged through historic data.

- Reviewed the variance analysis between prior year projected cashflows versus actual cash flows.

- Compared employment rates to approved and prospective contracts.

- Challenged the cost base used for contracts.

- Ensured the base cashflow is updated with actual data from 2023.

- Examined different scenarios, their likelihood and impact on the Group.

- Reviewed the probability of signing new contracts, based on current negotiation developments.

- Obtained approval and confirmed the refinancing of its existing loan facilities.

The main assumptions/facts used in the cash flow projections include the estimated EBITDA to be generated in 2024, the inclusion of cash

inflows relating to potential contracts. If these assumptions are accurately estimated there should be no breach of covenants in the next

twelve months and the Group will be able to cover its short-term liabilities.

Annual Report 2023 Consolidated Financial Statement 39

(d) Perform reverse stress tests to assess under what circumstances going concern would become a risk

The base case forecast model was further adjusted to establish at what point the Group may not be able to meet its obligations. The

Management has developed two stress test scenarios:

1. The first stress test scenario incorporates a reduced utilization or reduced contract rates by 50% on new employment. In this

scenario, the company will be able to meet all its commitments.

2. The second stress test scenario includes only the signed contracts up to the signing date of the financial statements. In its

assessment, the board considers availability of alternative sources of financing to mitigate the impact on liquidity, including cost

saving measures and tighter working capital control as a first response. The Group has contingency plans in place in case of a

prolonged stand-off, which will take the Group’s run-rate on cash costs down to a very low level, enabling it to handle a period

of low demand from the oil companies. However, based on the sensitivity, the Group will have sufficient cash to cover its

expenses and commitments during the forecast period.

Hence, for the going concern becoming a risk for the Group, it would need to see a scenario where the existing contract is cancelled

and new contracts are at lower profitability than the existing one would be awarded. That said, the current project progresses properly

and there are no any events leading to such incidents.

(e) Examine other mitigating actions to remedy the stress test scenarios.

- Diversification of operations

- Alternative credit funding sources

- The Group is listed in the Oslo Stock Exchange and has access to funds from shareholders, if needed.

- As per above this tool was applied successfully twice during 2022; the latest share issue in July 2022 was substantially

oversubscribed indicating the general interest to invest in the seismic market and the Group.

(f) Conclude upon the going concern assumption

The above matters do not reveal any significant doubt over the Group’s ability to continue as a going concern. However, Management

determined that the actions taken so far and the available options are sufficient regarding this matter of going concern, and has therefore

prepared the consolidated and stand-alone financial statements on a going concern basis.

2.2 Adoption of new or revised standards and interpretations

There were no changes in accounting principles and no new IFRS standards, amendments or interpretations that have been up for

adoption in 2023.

New standards, amendments, IFRSs or IFRIC interpretations for annual reporting periods after 31st of December 2023 are expected to not

be significant for the Group’s financial statements going forward.

2.3 Consolidation

(A) Subsidiaries

The consolidated financial statements incorporate the financial statements of the company and entities (including structured entities)

controlled by the company (its “subsidiaries”).

Control is achieved when the company:

- has power over the investee;

- is exposed, or has rights, to variable returns from its involvement with the investee; and

- has the ability to use its power to affect its returns.

The company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more

of the three elements of control listed above.

When the company has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are

sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally.

Subsidiaries are fully consolidated from the date on which control is transferred to SeaBird. They are de-consolidated from the date that

control ceases. The purchase method of accounting is used to account for the acquisition of subsidiaries by SeaBird. The cost of an

acquisition is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of

exchange. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially

Annual Report 2023 Consolidated Financial Statement 40

at their fair values at the acquisition date, irrespective of the extent of any minority interest. The excess of the cost of acquisition over the

fair value of SeaBird’s share of the identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less than the fair

value of the net assets of the subsidiary acquired, the difference is recognized directly in the income statement.

Inter-company transactions, balances and unrealized gains on transactions between SeaBird companies are eliminated. Accounting

policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by SeaBird. For a complete

listing of subsidiaries please refer to note 19 Subsidiaries and associates within the Group.

(B) Non-controlling interests (minority interests)

Changes in a parent's ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary are equity

transactions (meaning transactions with owners in their capacity as owners).

For more information regards to non-controlling interest see note 19 Subsidiaries and associates within the Group.

If the Group loses control of a subsidiary with non-controlling interest;

- the Group derecognizes the assets and liabilities of the former subsidiary from the consolidated statement of financial position

- Recognizes any investment retained in the former subsidiary at its fair value when control is lost and subsequently accounts for it

and for any amounts owed by or to the former subsidiary in accordance with relevant IFRSs. That fair value shall be regarded as

the fair value on initial recognition of a financial asset in accordance with IFRS 9 or, when appropriate, the cost on initial

recognition of an investment in an associate or joint venture.

- recognizes the gain or loss associated with the loss of control attributable to the former controlling interest

The non-controlling interest represents the investment in Green Minerals AS.

Green Minerals AS was decided to be distributed to SeaBird’s shareholder in 2022, and as such has been recognized as discontinued

operation in the annual accounts for 2022. The distribution was completed 25 January 2023, and thus deconsolidated from the annual

accounts for the year 2023.

2.4 Segment reporting

A segment is a distinguishable component of the Group that is engaged in providing related services (business segment), or in providing

services within a particular economic environment (geographical segment), which is subject to risks and returns that are different from

those of other segments. The Group has one business segment. The CEO of the Group is considered to be the Chief Operating Decision

Maker.

2.5 Foreign currency translation

(A) Presentation currency

The consolidated financial statements are presented in US dollars, which is also the Group’s functional currency.

(B) Transactions and balances

Foreign currency transactions are translated into the presentation currency using the exchange rates prevailing at the dates of the

transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such

transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are

recognized in the income statement. Foreign exchange gains and losses arising from financing activities are recognized in finance costs

while all other foreign exchange gains and losses are recognized in their individual line items.

The results and financial position of all the SeaBird entities that have a functional currency different from the presentation currency are

translated into the presentation currency as follows:

I. assets and liabilities for each balance sheet item are translated at the closing rate at the date of that balance sheet;

II. income and expenses are translated at average exchange rates during the year (unless this average is not a reasonable

approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses

are translated at the dates of the transactions); and

III. all resulting exchange differences are recognized as a separate component of equity.

Annual Report 2023 Consolidated Financial Statement 41

On consolidation, exchange differences arising from the translation of the net investment in foreign operations are taken to shareholders’

equity. When a foreign operation is sold, exchange differences that were recorded in equity are recognized in the income statement as

part of the gain or loss on sale.

2.6 Interests in joint operations and associates

Joint operations

A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and

obligations for the liabilities, relating to the arrangement. Joint control is the contractually agreed sharing of control of an arrangement,

which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control.

When a group entity undertakes its activities under joint operations, the Group as a joint operator recognizes in relation to its interest in a

joint operation:

- its assets, including its share of any assets held jointly;

- its liabilities, including its share of any liabilities incurred jointly;

- its revenue from the sale of its share of the output arising from the joint operation;

- its share of the revenue from the sale of the output by the joint operation; and

- its expenses, including its share of any expenses incurred jointly.

The Group accounts for the assets, liabilities, revenue and expenses relating to its interest in a joint operation in accordance with the IFRS

Standards applicable to the particular assets, liabilities, revenue and expenses.

When a group entity transacts with a joint operation in which a group entity is a joint operator (such as a sale or contribution of assets),

the Group is considered to be conducting the transaction with the other parties to the joint operation, and gains and losses resulting from

the transactions are recognized in the Group’s consolidated financial statements only to the extent of other parties’ interests in the joint

operation.

When a group entity transacts with a joint operation in which a group entity is a joint operator (such as a purchase of assets), the Group

does not recognize its share of the gains and losses until it resells those assets to a third party.

The Group’s multi-client projects presented in these financial statements joint control arrangements accounted for as joint operations.

Associates

Associates are entities over which the consolidated entity has significant influence but not control or joint control. Investments in associates

are accounted for using the equity method. Under the equity method, the share of the profits or losses of the associate is recognised in

profit or loss and the share of the movements in equity is recognised in other comprehensive income. Investments in associates are carried

in the statement of financial position at cost plus post-acquisition changes in the consolidated entity's share of net assets of the associate.

Goodwill relating to the associate is included in the carrying amount of the investment and is neither amortised nor individually tested for

impairment. Dividends received or receivable from associates reduce the carrying amount of the investment.

When the consolidated entity's share of losses in an associate equal or exceeds its interest in the associate, including any unsecured long-

term receivables, the consolidated entity does not recognise further losses, unless it has incurred obligations or made payments on behalf

of the associate.

The consolidated entity discontinued the use of the equity method upon the loss of significant influence over the associate and recognises

any retained investment at its fair value. Any difference between the associate's carrying amount, fair value of the retained investment

and proceeds from disposal is recognised in profit or loss.

2.7 Property, plant and equipment

Property, plant and equipment comprise mainly vessels and seismic equipment on board owned or chartered vessels. Vessels, seismic

equipment designated for source and 2D operation and office equipment are carried at historical cost, less accumulated depreciation

and impairment.

Cost represents either the purchase price or the fair value at the time of acquisition if the purchase was through a business combination.

Certain expenditures for conversions and major improvements are also capitalized if they appreciably extend the life or increase the

earning capacity of a vessel. Elements of cost include costs that are directly attributable to the improvement or conversion project but

not administration and other general overhead costs. Subsequent costs are included in the asset’s carrying amount or recognized as a

separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and

the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement during the

financial period in which they are incurred.

Annual Report 2023 Consolidated Financial Statement 42

Depreciation on property, plant and equipment is calculated on a straight-line basis (historical cost less residual value) over their estimated

useful lives, as follows:

- Vessels: Up to 25 years

- Conversion expenditures: Vessels remaining life

- Seismic equipment (immovable): Vessels remaining life

- Seismic equipment (movable): 3 to 8 years

- Office equipment: 3 years

The vessels are depreciated from the date they are available for use, i.e. when they are in the location and condition necessary for them

to be capable of operating in the manner intended by management. Costs for special periodic and class renewal surveys (dry-docking)

are capitalized and depreciated over the estimated period between surveys. When special periodic and class renewal surveys occur the

part of the fixed assets register that is replaced is derecognized. Other maintenance and repair costs are expensed as incurred. The

assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.

An asset’s carrying amount is derecognized upon disposal or when no future economic benefits are expected to arise from the continued

use of the asset. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included under

“Gain/(loss) on sale of property, plant and equipment” in the income statement.

Property, plant and equipment under construction or under conversion are recognized at cost less impairment. Elements of cost include

costs that are directly attributable to the conversion project but not administration and other general overhead costs.

2.8 Intangible assets

(A) Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortization and accumulated

impairment losses. Amortization is recognized on a straight‑line basis over their estimated useful lives. The estimated useful life and

amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for

on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less accumulated

impairment losses.

(B) Internally‑generated intangible assets – research and development expenditure

Expenditure on research activities is recognized as an expense in the period in which it is incurred. An internally‑generated intangible asset

arising from development (or from the development phase of an internal project) is recognized if, and only if, all of the following conditions

have been demonstrated:

- the technical feasibility of completing the intangible asset so that it will be available for use or sale;

- the intention to complete the intangible asset and use or sell it;

- the ability to use or sell the intangible asset;

- how the intangible asset will generate probable future economic benefits;

- the availability of adequate technical, financial and other resources to complete the development and to use or sell the

intangible asset; and

- the ability to measure reliably the expenditure attributable to the intangible asset during its development.

The amount initially recognized for internally‑generated intangible assets is the sum of the expenditure incurred from the date when the

intangible asset first meets the recognition criteria listed above. Where no internally‑generated intangible asset can be recognized,

development expenditure is recognized in profit or loss in the period in which it is incurred. Subsequent to initial recognition,

internally‑generated intangible assets are reported at cost less accumulated amortization and accumulated impairment losses, on the

same basis as intangible assets that are acquired separately.

An intangible asset is derecognized on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses

arising from de-recognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying

amount of the asset, and are recognized in profit or loss when the asset is derecognized.

Following initial recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated impairment

losses. Intangible assets with finite lives are amortized over the useful economic lives based on straight line amortization. Useful lives and

amortization method for intangible assets with finite useful life are reviewed at least annually. Gains and losses arising from de-recognition

of an intangible asset are measured at the difference between the net sales proceeds and the carrying amount of the asset and are

reported as “other income (expenses), net” in the income statement as part of operating profit.

Annual Report 2023 Consolidated Financial Statement 43

The company currently owns no intangible assets other than multi-client investments, which are described below.

(D) Multi-client library

The multi-client library consists of seismic data surveys to be licensed to customers on a non-exclusive basis. Costs directly incurred in

acquiring, processing and otherwise completing multi-client seismic surveys, including depreciation and mobilization costs, are capitalized

to the multi-client library.

Generally, each multi-client survey is amortized in a manner that reflects the pattern of consumption of its economic benefits.

Upon completion of data processing and delivery to the prefunding customers and those contracted during the work in progress phase,

amortization is recognized based on total costs versus forecasted total revenues of the project.

Thereafter, a straight-line amortization is applied over the project's remaining useful life, which for most projects is estimated to be four

years. The straight-line amortization is distributed evenly through the financial years, independently of sales during the quarters.

Whenever there is an indication that a survey may be impaired, an impairment test is performed in accordance with the policy described

in Note 2.9 Impairment of non-financial assets. A systematic impairment test of all surveys is performed at least annually at the end of the

financial year.

2.9 Impairment of non-financial assets

At the end of each reporting period, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether

there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the

asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable

amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating

units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation

basis can be identified.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and

whenever there is an indication that the asset may be impaired.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows

are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the

risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or

cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced

to its recoverable amount. An impairment loss is recognized in profit or loss.

Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised

estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have

been determined had no impairment loss been recognized for the asset (cash-generating unit) in prior years. A reversal of an impairment

loss is recognized in profit or loss.

2.10 Non-current assets held for sale

Non-current assets (and disposal groups) classified as held for sale are measured at the lower of carrying amount and fair value less costs

to sell.

Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered through a sale transaction

rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset (or disposal

group) is available for immediate sale in its present condition. Management must be committed to the sale which should be expected

to qualify for recognition as a completed sale within one year from the date of classification.

Property, plant and equipment and intangible assets are not depreciated or amortized once classified as held for sale.

Assets and liabilities classified as held for sale are presented separately as current items in the statement of financial position.

2.11 Financial assets and financial liabilities

Financial assets and financial liabilities are recognized in the Group’s balance sheet when the Group becomes a party to the contractual

provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value and are subsequently held at fair

value or amortized cost based on the classification provisions described below.

2.11.1 Financial assets - classification

The Group classifies its financial assets in the following measurement categories:

Annual Report 2023 Consolidated Financial Statement 44

- those to be measured subsequently at fair value (either through other comprehensive income “OCI” or through profit or loss), and

- those to be measured at amortized cost

The classification and subsequent measurement of debt financial assets depends on: (i) the Group's business model for managing the

related assets portfolio and (ii) the cash flow characteristics of the asset.

In order for a financial asset to be classified and measured at amortized cost or fair value through OCI, it needs to give rise to cash flows

that are ‘solely payments of principal and interest (SPPI)’ on the principal amount outstanding. This assessment is referred to as the SPPI

test and is performed at an instrument level.

The Group’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The

business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both.

Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the

market place (regular way trades) are recognized on the trade date, i.e., the date that the Group commits to purchase or sell the asset.

For purposes of subsequent measurement, financial assets are classified in four categories:

- Financial assets at amortized cost (debt instruments)

- Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments)

- Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon de-recognition (equity

instruments)

- Financial assets at fair value through profit or loss

Financial assets at amortized cost (debt instruments)

This category is the most relevant to the Group. The Group measures financial assets at amortized cost if both of the following conditions

are met:

- The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows,

and

- The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest

on the principal amount outstanding.

Financial assets at amortized cost are subsequently measured using the effective interest (EIR) method and are subject to impairment.

Gains and losses are recognized in profit or loss when the asset is derecognized, modified or impaired.

The Group’s financial assets at amortized cost includes trade receivables, cash and cash equivalents and restricted cash.

Financial assets at fair value through OCI (debt instruments)

The Group measures debt instruments at fair value through OCI if both of the following conditions are met:

- The financial asset is held within a business model with the objective of both holding to collect contractual cash flows and selling,

and

- The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest

on the principal amount outstanding.

For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or reversals are

recognized in the statement of profit or loss and computed in the same manner as for financial assets measured at amortized cost. The

remaining fair value changes are recognized in OCI. Upon de-recognition, the cumulative fair value change recognized in OCI is recycled

to profit or loss.

The Group does not hold any debt instruments at fair value through OCI.

Financial assets designated at fair value through OCI (equity instruments)

Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments designated at fair value

through OCI. The classification is determined on an instrument-by-instrument basis.

Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognized as other income in the statement

of profit or loss when the right of payment has been established, except when the Group benefits from such proceeds as a recovery of

part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at fair value through

OCI are not subject to impairment assessment. The Group does not hold any equity instruments at fair value through OCI.

Annual Report 2023 Consolidated Financial Statement 45

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated upon initial

recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial assets are

classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including

separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments.

Financial assets with cash flows that are not solely payments of principal and interest are classified and measured at fair value through

profit or loss, irrespective of the business model. Notwithstanding the criteria for debt instruments to be classified at amortized cost or at

fair value through OCI, as described above, debt instruments may be designated at fair value through profit or loss on initial recognition

if doing so eliminates, or significantly reduces, an accounting mismatch.

Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes in fair

value recognized in the statement of profit or loss.

This category includes the listed debt investment and the non-listed equity investment shown within the line long-term investments.

2.11.2 De-recognition of financial assets

Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred

and the Group has transferred substantially all the risks and rewards of ownership.

On de-recognition of a financial asset in its entirety, the difference between the carrying amount (measured at the date of de-

recognition) and the consideration received (including any new asset obtained less any new liability assumed) shall be recognized in

profit or loss.

2.11.3 Financial assets: impairment and credit loss allowance for ECL

The Group assesses on a forward looking basis the ECL for debt instruments (including loans) measured at amortized cost and FVOCI and

with the exposure arising from loan commitments and financial guarantee contracts. The Group measures ECL and recognizes credit loss

allowance at each reporting date. The measurement of ECL reflects: (i) an unbiased and probability weighted amount that is determined

by evaluating a range of possible outcomes, (ii) time value of money and (iii) all reasonable and supportable information that is available

without undue cost and effort at the end of each reporting period about past events, current conditions and forecasts of future conditions.

The carrying amount of the financial assets is reduced through the use of an allowance account, and the amount of the loss is recognized

in profit or loss.

Debt instruments measured at amortized cost are presented in the consolidated statement of financial position net of the allowance for

ECL.

For debt instruments at FVOCI, an allowance for ECL is recognized in profit or loss and it affects fair value gains or losses recognized in OCI

rather than the carrying amount of those instruments.

Expected losses are recognized and measured according to one of two approaches: general approach or simplified approach.

For trade receivables including trade receivables with a significant financing component and contract assets and lease receivables the

Group applies the simplified approach permitted by IFRS 9, which uses lifetime expected losses to be recognized from initial recognition

of the financial assets.

For all other financial asset that are subject to impairment under IFRS 9, the Group applies the general approach. The Group applies a

three-stage model for impairment, based on changes in credit quality since initial recognition. A financial instrument that is not credit

impaired on initial recognition is classified in Stage 1.

Financial assets in Stage 1 have their ECL measured at an amount equal to the portion of lifetime ECL that results from default events

possible within the next 12 months or until contractual maturity, if shorter (''12 months ECL''). If the Group identifies a significant increase in

credit risk (''SICR'') since initial recognition, the asset is transferred to Stage 2 and its ECL is measured based on ECL on a lifetime basis, that

is, up until contractual maturity but considering expected prepayments, if any (''Lifetime ECL''). If the Group determines that a financial

asset is credit impaired, the asset is transferred to Stage 3 and its ECL is measured as a Lifetime ECL.

In assessing whether the credit risk on a financial instrument has increased significantly since initial recognition, the Group compares the

risk of a default occurring on the financial instrument at the reporting date with the risk of a default occurring on the financial instrument

at the date of initial recognition. In making this assessment, the Group considers both quantitative and qualitative information that is

reasonable and supportable, including historical experience and forward-looking such as the future prospects of the oil and gas industry

in which the Group’s debtors operate.

Despite the foregoing, the Group assumes that the credit risk on a financial instrument has not increased significantly since initial

recognition if the financial instrument is determined to have low credit risk at the reporting date. A financial instrument is determined to

Annual Report 2023 Consolidated Financial Statement 46

have low credit risk if the financial instrument has a low risk of default, the debtor has a strong capacity to meet its contractual cash flow

obligations in the near term, and adverse changes in economic and business conditions in the longer term may, but will not necessarily,

reduce the ability of the counterparty to fulfil its contractual cash flow obligations. The Group considers a financial asset to have low

credit risk when the asset has external credit rating of ‘investment grade’ in accordance with the globally understood definition or if an

external rating is not available, the asset has an internal rating of ‘performing’. Performing means that the counterparty has a strong

financial position and there is no past due amounts.

The Group considers a financial asset in default when internal or external information indicates that the Group is unlikely to receive the

outstanding contractual amounts in full.

A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of that

financial asset have occurred. Evidence that a financial asset is credit-impaired includes observable data about events such as:

significant financial difficulty of the issuer or the borrower; a breach of contract, such as a default or past due event; it is becoming

probable that the borrower will enter bankruptcy or other financial reorganization; or the disappearance of an active market for that

financial asset because of financial difficulties.

2.11.4 Reclassification of financial assets

Financial instruments are reclassified only when the business model for managing those assets changes. The reclassification has a

prospective effect and takes place from the start of the first reporting period following the change.

2.11.5 Financial assets write off

Financial assets are written off, in whole or in part, when the Group exhausted all practical recovery efforts and has concluded that there

is no reasonable expectation of recovery. The write off represents a de-recognition event. The Group may write off financial assets that

are still subject to enforcement activity when the Group seeks to recover amounts that are contractually due, however, there is no

reasonable expectation of recovery.

2.11.6 Financial liabilities measurement categories

Financial liabilities are initially recognized at fair value and classified as subsequently measured at amortized cost, except for (i) financial

liabilities at FVTPL: this classification is applied to derivatives, financial liabilities held for trading (e.g. short positions in securities), contingent

consideration recognized by an acquirer in a business combination and other financial liabilities designated as such at initial recognition

and (ii) financial guarantee contracts and loan commitments.

The Group’s financial liabilities are classified as subsequently measured at amortized cost.

Borrowings

Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently carried at amortized cost.

Any difference between the proceeds (net of transaction costs) and the redemption value is recognized in profit or loss over the period

of the borrowings, using the effective interest method, unless they are directly attributable to the acquisition, construction or production

of a qualifying asset, in which case they are capitalized as part of the cost of that asset. Borrowings are classified as current liabilities,

unless the Group has an unconditional right to defer settlement of the liability for at least twelve months after the consolidated statement

of financial position date.

2.11.7 De-recognition of financial liabilities

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. The difference between

the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in profit or loss.

When the Group exchanges with the existing lender one debt instrument into another one with the substantially different terms, such

exchange is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly,

the Group accounts for substantial modification of terms of an existing liability or part of it as an extinguishment of the original financial

liability and the recognition of a new liability. In determining whether a modification of terms of a liability is a substantial modification, the

Group considers quantitative and qualitative factors. It is assumed that the terms are substantially different if the discounted present value

of the cash flows under the new terms, including any fees paid net of any fees received and discounted using the original effective rate

is at least 10 per cent different from the discounted present value of the remaining cash flows of the original financial liability. If the

modification is not substantial, the difference between: (1) the carrying amount of the liability before the modification; and (2) the present

value of the cash flows after modification, is recognized in profit or loss as the modification gain or loss.

2.12 Inventories

Inventories are stated at the lower of cost and net realizable value. Cost is determined using the first-in, first-out (FIFO) method. The Group’s

inventories comprise of fuel and lube oils.

Annual Report 2023 Consolidated Financial Statement 47

2.13 Cash and cash equivalents

Cash and cash equivalents includes cash in hand, deposits held at call with banks and other short-term highly liquid investments.

2.14 Share capital

Ordinary share capital is classified as equity. The difference between the fair value of the consideration received by the company and

the nominal value of the share capital issued is taken to the share premium account.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the

proceeds.

Where and if any group company purchases the parent company’s equity share capital (treasury shares), the consideration paid,

including any directly attributable incremental costs (net of income taxes), is deducted from equity attributable to the Group’s equity

holders until the shares are cancelled or reissued. Where such shares are subsequently reissued, any consideration received (net of any

directly attributable incremental transaction costs and the related income tax effects) is included in equity attributable to the Group’s

equity holders.

Equity-settled share-based payment transactions with parties other than employees are measured at the fair value of the goods or services

received, except where that fair value cannot be estimated reliably, in which case they are measured at the fair value of the equity

instruments granted, measured at the date the entity obtains the goods or the counterparty renders the service. For more information see

Note 15 Share capital and share options.

2.15 Current and deferred tax

The tax expense for the period comprises current and deferred tax. Tax is recognized in the income statement, except to the extent that

it relates to items recognized directly in equity. In this case, the tax is also recognized in equity. The current income tax charge is calculated

on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where SeaBird operates and

generates taxable income.

Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject

to interpretation. SeaBird establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and

liabilities and their carrying amounts in the consolidated financial statements.

However, the deferred income tax, if it is not accounted for, arises from initial recognition of an asset or liability in a transaction other than

a business combination that at the time of the transaction affects neither accounting, nor taxable profit or loss.

Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet

date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.

Deferred income tax assets are recognized to the extent that it is probable that future taxable profit will be available against which the

temporary differences can be utilized. Deferred income tax is provided on temporary differences arising on investments in subsidiaries

and associates, except where the timing of the reversal of the temporary difference is controlled by SeaBird and it is probable that the

temporary difference will not reverse in the foreseeable future.

2.16 Employee benefits and share based payments

(A) Pension obligations

SeaBird operates various defined contribution plans under which it pays fixed contributions into a separate entity. The Group has no further

payment obligations once the contributions have been paid. The contributions are recognized as employee benefit expense when they

are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is

available.

(B) Share-based compensation

Equity-settled, share-based compensation plans, under which the Group receives services from employees as consideration for SeaBird

equity instruments (options) is booked as an expense. The total amount to be expensed over the vesting period is determined by reference

to the fair value of the options granted, excluding the impact of any nonmarket vesting conditions (for example, profitability and sales

growth targets).

Nonmarket vesting conditions are included in assumptions about the number of options that are expected to vest. At each balance sheet

date, the entity revises its estimates of the number of options that are expected to vest. It recognizes the impact of the revision of original

estimates, if any, in the income statement, with a corresponding adjustment to equity. The proceeds received net of any directly

attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised.

Annual Report 2023 Consolidated Financial Statement 48

The entity may modify the terms of an existing equity instrument granted in a share-based payment transaction. As a minimum, the services

received are measured at the grant date fair value, unless the instruments do not vest because of a failure to satisfy a non-market vesting

condition that was specified at grant date. This applies irrespective of any modifications to the terms and conditions on which the

instruments were granted (including cancellation or settlement). In addition, the effects of modifications that increase the total fair value

of the share-based payment arrangement, or are otherwise beneficial to the employee, are recognized. A modification that results in a

decrease in the fair value of equity instruments does not result in a reduction in the expense recognized in future periods. When the

modification increases the fair value of the equity instruments granted, the incremental fair value is measured by comparing the fair value

of the instrument immediately before and immediately after the modification. This incremental fair value is then included in the

measurement of the amount recognized for services received. If the modification occurs during the vesting period, the incremental fair

value granted is included in the measurement of the amount recognized for services received over the period from the modification date

until the date when the modified equity instruments vest. The amount based on the grant date fair value of the original equity instruments

continues to be recognized over the remainder of the original vesting period. If the modification occurs after vesting date, the incremental

fair value granted is recognized immediately. If the modification increases the number of equity instruments granted, the fair value of the

additional equity instruments granted, measured at the date of the modification, is included in the measurement of the amount

recognized for services received.

The cancellation or settlement of an equity instrument is accounted for as an acceleration of vesting. The amount that would otherwise

have been recognized for services received over the remainder of the vesting period is, therefore, recognized immediately. If new equity

instruments are granted to an employee in connection with the cancellation of existing equity instruments, and they are identified, on the

date when they are granted, as replacement equity instruments for the cancelled equity instruments, this is accounted for as a

modification of the original equity instruments. The incremental fair value granted is the difference between the fair value of the

replacement equity instruments and the net fair value of the cancelled equity instruments at the date the replacement equity instruments

are granted. The net fair value of the cancelled equity instruments is their fair value, immediately before the cancellation, less the amount

of any payment made to the employee that is accounted for as deduction from equity. If the entity does not identify new equity

instruments granted as replacement equity instruments for those cancelled, the new equity instruments are accounted for as a new grant.

2.17 Provisions

Provisions are recognized when SeaBird has a present legal or constructive obligation as a result of past events, it is more likely than not

that an outflow of resources will be required to settle the obligation and the amount has been reliably estimated.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the reporting

date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows

estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value

of money is material), using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the

obligation. The increase in the provision due to passage of time is recognized as interest expense.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable

is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured

reliably.

A restructuring provision is recognized when the Group has developed a detailed formal plan for the restructuring and has raised a valid

expectation in those affected that it will carry out the restructuring by starting to implement the plan or announcing its main features to

those affected by it. The measurement of a restructuring provision includes only the direct expenditures arising from the restructuring,

which are those amounts that are both necessarily entailed by the restructuring and not associated with the ongoing activities of the

entity.

Onerous leases are contracts where the unavoidable costs of meeting the obligations under the contract exceed the economic benefits

expected to be received under it. Provision is made in respect of onerous contracts for the present obligation under the contract. Where

there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the

class of obligations as a whole. A provision is recognized even if the likelihood of an outflow with respect to any one item included in the

same class of obligations may be small.

2.18 Revenue recognition

Revenues for contracts with customers arise primarily from proprietary seismic services . Source contracts of seismic vessels and time-

charter contracts of maritime vessels under which a vessel is chartered-out to the customer for a specific period are accounted for as

leases (refer to Note 2.19 Leases).

Revenue is recognized at the amount that the Group expects to be entitled in exchange for transferring the promised services to the

customer (the ‘transaction price’). The Group includes in the transaction price an amount of variable consideration (for example,

additional consideration related to a “variation order”) only to the extent that it is probable that a significant reversal will not occur when

the associated uncertainly is resolved. Revenue is shown net of value-added tax, discounts, and after eliminating sales within the Group.

Revenue is recognized when it is probable that the Group will collect the consideration to which it will be entitled and when specific

Annual Report 2023 Consolidated Financial Statement 49

criteria have been met under the contract. In evaluating whether collectability is probable, the Group considers only the customer’s

ability and intention to pay.

Estimates of revenues, costs or extent of progress toward completion are revised if circumstances change. Any resulting increases of

decreases in estimates are reflected in the profit or loss in the period in which the circumstances become known to the management.

The principles applied for each of the main types of contracts with customers are described in more detail below:

Identification of performance obligations

The Group assesses whether a contract contains one or more performance obligations (that is, distinct promises to provide a service) and

allocates the transaction price to each performance obligation on the basis of its standalone selling price. The proprietary 2D contracts

(that do not include data processing service) are generally considered to have a single performance obligation. The service related to

seismic data processing, which is occasionally agreed in contracts with customers, is typically considered to be a separate performance

obligation.

Timing of revenue recognition in proprietary seismic services

Revenue from proprietary seismic services (2D contracts) is recognized over time as the services are performed and the Group is entitled

to the compensation under the contract for the work performed. The performance obligation is considered to be satisfied over time

because the Group performs the service at the customer specification, the resulting data is owned by the customer the Group is entitled

to payment at any given point in time for the portion of work performed and the Group has no alternative right to otherwise use or benefit

from the resultant data. Revenue is recognized based on the actual service provided to the end of the reporting period as a proportion

of the total services to be provided. The percentage of completion is measured with reference to the actual cost (cost per day multiplied

by days lapsed) to total expected costs (cost per day multiplied by expected project days).

Timing of revenue recognition in source contracts and time-charter contracts

Revenue from source contracts and time-charter contracts is recognized in accordance with the lessor accounting policies (Note 2.19

Leases). Typically, source contracts and time-charter contracts are classified as operating leases and hire income is recognized on a

straight-line basis over the term of the relevant lease.

Financing component

The Group typically does not have any contracts where the period between the delivery of the service and payment by the customer

exceeds one year. Consequently, the Group elects to use the practical expedient and does not adjust any of the transaction prices for

the time value of money.

Contract assets and contract liabilities

In case the services rendered by the Group as of the reporting date exceed the payments made by the customer as of that date and

the Group does not have the unconditional right to charge the client for the services rendered (that is, the Group has earned ‘unbilled

revenue’), a contract asset is recognized. The Group assesses a contract asset for impairment in accordance with IFRS 9 using the

simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from initial recognition of the contract

asset. An impairment of a contract asset is measured, presented and disclosed on the same basis as a financial asset that is within the

scope of IFRS 9 (see Note 2.11.3 Financial assets: impairment and credit loss allowance for ECL).

If the payments made by a customer exceed the services rendered under the relevant contract, a contract liability is recognized. The

Group recognizes any unconditional rights to consideration separately from contract assets as a trade receivable because only the

passage of time is required before the payment is due.

Costs to obtain or fulfil contracts with customers

The Group can recognize the incremental costs incurred by the Group to obtain contracts with customers and the costs incurred in fulfilling

contracts with customers that are directly associated with the contract as an asset, if such costs meet the following recognition criteria:

- Incremental costs of obtaining contracts are those costs that the Group incurs to obtain a contract with customer that would not

have been incurred if the contract had not been obtained.

- Costs to fulfil a contract are those that (a) relate directly to the contract, (b) generate or enhance resources of the Group that will

be used in satisfying performance obligations, and (c) the costs are expected to be recovered.

The Group accounts for the mobilization costs incurred to transfer the vessel to the intended contract area as “costs to fulfil a contract” if

they meet the above criteria and recognizes the costs as an asset on the balance sheet, classified within “other current assets”. The asset

is amortized on a straight-line basis over the term of the specific contract it relates to, consistent with the pattern of recognition of the

Annual Report 2023 Consolidated Financial Statement 50

associated revenue and recognized in “cost of sales” in the profit or loss. Additionally, the asset is assessed for impairment under the

expected credit loss provisions and any impairment loss is recognized in “cost of sales” in profit or loss.

The Group recognizes the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset

that the Group otherwise would have recognized is one year or less.

2.19 Leases

The Group as a lessee

The Group assesses whether a contract is or contains a lease, at inception of the contract.

The Group enters into lease agreements as a lessee with respect to its vessels chartered-in, the Group’s office premises, as well as rentals

of office equipment. The Group recognizes a right-of-use asset and a corresponding lease liability with respect to all lease arrangements

in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value

assets (such as small items of office equipment). For these leases, the Group recognizes the lease payments as an operating expense on

a straight- line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic

benefits from the leased assets are consumed.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date,

discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the lessee uses its incremental borrowing rate.

Lease payments included in the measurement of the lease liability comprise:

- Fixed lease payments (including in-substance fixed payments), less any lease incentives receivable;

- Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date;

- The amount expected to be payable by the lessee under residual value guarantees;

- The exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and

- Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.

The lease liability is presented as a separate line in the consolidated statement of financial position.

The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective

interest method) and by reducing the carrying amount to reflect the lease payments made.

The Group re-measures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever:

- The lease term has changed or there is a significant event or change in circumstances resulting in a change in the assessment of

exercise of a purchase option, in which case the lease liability is re-measured by discounting the revised lease payments using a

revised discount rate.

- The lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual

value, in which cases the lease liability is re-measured by discounting the revised lease payments using an unchanged discount rate

(unless the lease payments change is due to a change in a floating interest rate, in which case a revised discount rate is used).

- A lease contract is modified, and the lease modification is not accounted for as a separate lease, in which case the lease liability is

re-measured based on the lease term of the modified lease by discounting the revised lease payments using a revised discount rate

at the effective date of the modification.

The Group did not make any such adjustments during the current year.

The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the

commencement day, less any lease incentives received and any initial direct costs. They are subsequently measured at cost less

accumulated depreciation and impairment losses.

Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lessee transfer’s

ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group expects to exercise a purchase option, the

related right-of-use asset is depreciated over the useful life of the underlying asset.

The depreciation starts at the commencement date of the lease.

The right-of-use assets are presented as a separate line in the consolidated statement of financial position.

The Group applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as

described in the ‘Property, Plant and Equipment’ policy (see Note 2.7 Property, plant and equipment).

Annual Report 2023 Consolidated Financial Statement 51

Variable rents that do not depend on an index or rate are not included in the measurement of the lease liability and the right-of-use asset.

The related payments are recognized as an expense in the period in which the event or condition that triggers those payments occurs

and are recognized in profit or loss, classified within "Cost of sales" if related to rental of vessels or in "Selling, general and administrative

expenses" if related to rental of office space or office equipment.

As a practical expedient, IFRS 16 permits a lessee not to separate non-lease components, and instead account for any lease and

associated non-lease components as a single arrangement. The Group has used this practical expedient.

The Group as lessor

The Group enters into lease agreements as a lessor with respect to its vessels chartered-out under source contracts.

Leases for which the Group is a lessor are classified as finance or operating leases. Whenever the terms of the lease transfer substantially

all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating

leases.

When the Group is an intermediate lessor, it accounts for the head lease and the sublease as two separate contracts. The sublease is

classified as a finance or operating lease by reference to the right-of-use asset arising from the head lease.

Rental income from operating leases is recognized on a straight-line basis over the term of the relevant lease. Initial direct costs incurred

in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized on a straight-line

basis over the lease term.

Amounts due from lessees under finance leases are recognized as receivables at the amount of the Group’s net investment in the leases.

Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the Group’s net investment

outstanding in respect of the leases.

When a contract includes lease and non-lease components, the Group applies IFRS 15 to allocate the consideration under the contract

to each component.

2.20 Dividend distribution

Dividend distribution to the Group’s shareholders is recognized as a liability in SeaBird’s financial statements in the period in which the

dividends are approved by the Board of Directors.

2.21 Comparatives

Where necessary, comparative figures have been adjusted to conform to changes in presentation in the current year.

2.22 Contingent assets and liabilities

Contingent assets are not recognized in the financial statements but are disclosed in the notes to the financial statements where an inflow

of economic benefits is probable. Contingent liabilities are defined as:

- possible obligations resulting from past events, and whose existence will be confirmed only by the occurrence or non‑occurrence of

one or more uncertain future events not wholly within the control of the entity; and

- a present obligation that arises from past events but is not recognized because:

(i) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation;

(ii) the amount of the obligation cannot be measured with sufficient reliability.

Contingent liabilities are not reported in the financial statements, with the exception of contingent liabilities which originate from business

combinations. For more information see Note 28 Commitments and contingencies.

2.23 Contract costs

Costs incurred relating to future performance obligations are deferred and recognized as assets in the consolidated statement of financial

position.

The nature of the asset is incremental costs of obtaining a contract that would not have incurred if the contract had not been obtained

and will be recovered by the revenue over the contract period.

Costs related to contracts and future performance obligation longer than 12 months are classified and presented as other non-current

assets. All other costs for future performance are presented as other current assets.

Contract costs incurred will be expensed and presented as Operational expenses (cost of sales) in line with the satisfaction of the

performance obligation.

Annual Report 2023 Consolidated Financial Statement 52

2.24 Costs to fulfil a contract

If the costs incurred in fulfilling a contract with a customer are not within the scope of another Standard the company recognizes an asset

from the costs incurred to fulfil a contract if those costs meet all of the following criteria:

(a) the costs relate directly to a contract or to an anticipated contract that the company can specifically identify);

(b) the costs generate or enhance resources of the entity that will be used in satisfying (or in continuing to satisfy) performance obligations

in the future; and

Costs related to mobilization of vessels are capitalized under other current assets and amortized over the contract period when the above

criteria are satisfied.

3 Risk factors and financial risk management

3.1 Financial risk factors

SeaBird’s activities are exposed to a variety of financial risks: market risk (including currency risk, interest rate risk and price risk), credit risk

and liquidity risk. The Group’s overall risk management focuses on the unpredictability of financial markets and monitors and controls risks

with a potential significant negative effect for the Group and evaluates to minimize the risks if the cost of doing so is acceptable. The

Group may use derivative financial instruments to hedge certain risk exposures from time to time. This note presents information about the

Group’s exposure to each of the above risks, the Group’s objectives, policies and procedures for measuring and managing risk, and the

Group’s management of capital. Further quantitative disclosures are included in Note 31 Financial instruments. The board of directors has

overall responsibility for the establishment and oversight of the Group’s risk management framework. The audit committee oversees how

management monitors and manages risk and review the adequacy of the risk management framework in relation to the risks faced by

SeaBird.

(A) Market risk

(I) Currency exchange risk

Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. The Group’s

operating cash inflows are derived from its seismic activities, which are mostly priced in U. S. dollar whilst vessels’ costs and crew costs are

also mostly in U.S. dollar, thus creating a natural hedge. Nevertheless, as the Group operates internationally, it undertakes transactions

denominated in foreign currencies, in particular with regards to taxation payments, as well as administrative expenses. Consequently, the

Group is exposed to foreign exchange risk, primarily with respect to Norwegian kroner, Euro, Singapore Dollar, and British Pound. To

manage foreign exchange risk arising from future commercial transactions and recognized assets and liabilities, the Group’s

management monitors the currency rate fluctuations continuously and entities in the Group may use from time-to-time various foreign

exchange contracts. SeaBird did not have any open foreign exchange contracts as at 31 December 2023 and 2022. Quantitative

information regarding the Group’s exposure to foreign exchange risk as at year end is set out in Note 31 Financial instruments.

(II) Interest rate risk

Interest rate risk is the risk that the value of financial instruments will fluctuate due to changes in market interest rates. Variable interest

rates expose the Group to cash flow interest rate risk, while fixed interest rates expose the Group to fair value interest rate risk. The Group’s

income and operating cash flows are substantially independent of changes in market interest rates as the Group has no significant interest

bearing assets. The Group has a loan see Note 18 Interest bearing loans and borrowings. The management monitors the interest rate

fluctuations on a continuous basis and acts accordingly. Quantitative information regarding the Group’s exposure to interest rate risk as

at year end is set out in Note 31 Financial instruments.

(B) Credit risk

The company sells its services solely to participants in the energy industry, which may increase the Group’s overall exposure to credit risk

as customers may be similarly affected by prolonged industry downturns. SeaBird has policies in place to ensure that sales of services are

made to customers with an appropriate credit history. When contracts are made with counterparties that are considered particularly

risky, the company normally dictates short payment terms and upfront payments in contractual arrangements with the client to properly

mitigate credit risk. Still, the Group faces the risk of non-payment from customers.

Credit risk also arises from cash and cash equivalents, deposits with financial institutions as well as contract assets and contract costs.

SeaBird seeks to limit the amount of credit exposure to any financial institution and is only investing in liquid securities with counterparties

with strong credit ratings. The Group’s policy is to provide financial guarantees only to wholly-owned subsidiaries or performance

guarantees and similar in the normal course of business.

Annual Report 2023  Consolidated Financial Statement  53 
 
 
Note  31  Financial  instruments  details  the  Group’s  maximum  exposure  to  credit  risk  and  the  measurement  bases  used  to  determine 
expected credit losses.  
(C) Liquidity risk  
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of funding through an 
adequate amount of available debt funding and the ability to close out market positions. Due to the cyclical nature of the seismic industry, 
SeaBird has been aiming to maintain flexibility in funding by a mixture of debt and equity financing. Quantitative information about the 
Group’s exposure to liquidity risk is set out in Note 31 Financial instruments.   
(D) Risks related to debt arrangements  
SeaBird’s current and future debt arrangements may include covenants and undertakings of a general, financial and technical nature 
and such debt arrangements may contain cross-default provisions. Failure by the Group to meet any of the covenants, undertakings 
and/or a  failure to repay debt instalments  falling due  could  result in  all  outstanding amounts under the different debt arrangements 
becoming immediately due for payment, which could potentially have a material adverse effect on the Group’s financial position and 
the  value  of  the  shares  and  the  Group’s  operations and  results.  Please  see  Note  18  Interest  bearing  loans  and  borrowings  for  more 
information. 
(E)  Capital risk management 
The Group manages its capital to ensure that entities in the Group will be able to continue as going concern while maximizing the return 
to shareholders through the optimization of the debt and equity balance. The Group’s overall strategy remains unchanged from prior 
year. The capital structure of the Group consists of net debt (borrowings – disclosed in Note 18 Interest bearing loans and borrowings – 
after deducting cash and bank balances – disclosed in Note 14 Cash and bank balances) and equity of the Group (comprising issued 
capital, reserves and retained earnings). The Group is subject to capital requirements, see Note 18 Interest bearing loans and borrowings 
were the loan covenants are described. 
3.2  Other risk factors 
SeaBird is subject to various other risk factors. The risks described below are not exhaustive as additional risks not presently known to SeaBird 
or  which  SeaBird  currently  deems  immaterial  may  also  impair  the  Group’s  business  operations.  If  any  of  the  following  risks  actually 
materialize, SeaBird’s business, financial position and operating results could be materially and adversely affected.  
SeaBird is exposed to the economic cycle, as changes in the general economic situation could affect demand for SeaBird’s services. 
Demand for offshore geophysical services depends on the level of capital spending by oil and gas companies. Capital expenditures, and 
in particular exploration and development expenditures, by oil and gas companies can be negatively affected by a number of factors 
including, but not limited to, decreases in oil and gas prices, fluctuations in production levels and disappointing exploration results.  
Low oil prices typically lead to a reduction in capital expenditures as these companies scale down their investment budgets. Sustained 
periods of  substantially  reduced capital  expenditures  by  these  companies  may  reduce  the  demand  for  the  SeaBird’s  products  and 
services. Furthermore, recoveries in oil and gas prices do not immediately increase exploration, development and production spending, 
so improving demand for SeaBird’s services will generally lag oil and gas price increases. SeaBird’s operating income/loss and operating 
results can vary from month to month. Its operating income is  difficult to forecast due  to  changes in oil companies’ exploration and 
production (E&P) budgets and expenditures, the competitive environment, efficiency in  operations, adverse weather conditions  and 
other general economic, changes in input costs and changes market conditions.  
SeaBird is also exposed to commodity (bunker fuel) price risk on some contracts. As SeaBird in general has a fairly short order backlog for 
contracts  where  SeaBird  is  carrying  the  risk  of  bunker  fuel  prices,  this  risk  has  not  historically  been  mitigated  by  forward  commodity 
contracts. Changes in  oil  prices and  exploration and production  budgets  could  materially affect  the  business and  operating results. 
Unanticipated difficulties in pursuing SeaBird’s business strategy could have a material adverse effect on the Group’s business, operating 
results,  or  financial  condition.  The  market  for  SeaBird’s  products  and  services  is  competitive.  SeaBird  faces  competition  from  other 
companies within the seismic industry. Generally, overcapacity in the seismic market would have a negative effect on the operating 
results of the Group, and the possible failure of SeaBird to maintain competitive offering of equipment and services could have a material 
adverse effect on its business, operating results or financial condition.  
SeaBird has a strategy of contracting its vessels both towards the long-term market as well as the more volatile spot market. There can be 
no guarantee that SeaBird will be able to secure contracts at such rates and utilization rates that are needed. In addition, SeaBird may 
experience  significant  off-hires  between  charters.  Furthermore,  disputes  under  the  charter  parties  may  occur,  which  can  result  in 
responsibility and losses for the Group. Operations in international markets are subject to risks inherent in international business activities, 
including, in particular, general economic conditions in each such country, overlapping differing tax structures, managing an organization 
spread  over  various  jurisdictions,  unexpected  changes  in  regulatory  requirements,  complying  with  a  variety  of  foreign  laws  and 
regulations. SeaBird’s business depends on contracts with customers regarding collection and sale/licensing of geophysical data.  

Annual Report 2023 Consolidated Financial Statement 54

Each contract normally involves a substantial value or consideration to the Group. Furthermore, some of the contracts are governed by

the laws of the operations’ areas, which may create both legal and practical difficulties in case of a dispute or conflict. SeaBird also

operates in regions where the ability to protect contractual and other legal rights may be limited compared to regions with more well-

established markets.

There will always be operational risks involved in performing offshore seismic surveys. This includes among others unexpected failure or

damage to vessels and technical equipment, work accidents or adverse weather conditions. These risks can cause personal injury,

prevent surveys to be performed as scheduled, other business interruptions, property and equipment damage, pollution and

environmental damage. SeaBird may be subject to claims as a result of these hazards. SeaBird seeks to prevent loss or damages from

such incidents by insurance, contractual regulations and emergency routines. However, there will always be some exposure to technical

and operational risks, with unforeseen problems leading to unexpectedly high operating costs, substantial losses, additional investments,

etc., which may have a material negative effect on the Group’s operating results and financial position. If for example a vessel is rendered

a total loss, the contract with the customer will be void and SeaBird will under such circumstances lose income that would otherwise come

from operating this vessel. Additionally, the occurrence of any of these risks could damage SeaBird’s reputation.

The parent company is subject to taxation in Norway while several of its subsidiaries are subject to taxation in Cyprus. The Group is also

subject to taxation in various other jurisdictions because of its global operations. SeaBird faces the risk that its tax filings are challenged

and may be subject to unexpected claims for unpaid taxes or sanctions as a consequence of breach of applicable tax legislation.

3.3 Fair value estimation

The fair value of financial instruments traded in active markets (such as listed debt and equity investments) is based on quoted market

prices at the balance sheet date. The quoted market price used for financial assets held by SeaBird is the current bid price.

The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. SeaBird uses a

variety of methods and makes assumptions that are based on market conditions existing at each balance sheet date including quoted

market prices or dealer quotes for similar instruments and discounted cash flows.

The carrying value of financial assets and financial liabilities approximate their fair values.

Details with regards to fair value estimation relevant to other financial instruments are set out in Note 31 Financial instruments.

4 Critical accounting estimates and judgments

The preparation of financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that

affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may

differ from these estimates.

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of

future events that are believed to be reasonable under the circumstances. Revisions to accounting estimates are recognized in the period

in which the estimates are revised and in any future periods affected.

Judgments made by management in the application of IFRSs that have significant effect on the consolidated financial statements and

estimates with a significant risk of material adjustment in the next year are discussed below.

(A) Estimating useful lives, residual value of vessels and equipment

The Group’s estimates of useful lives and plans for depreciation are based on investment considerations and on experience of technical

and economic life of similar assets. Expected useful life and residual values of the vessels can change according to environmental

requirements, wear and tear, corporate strategy, actual usage of the asset, as well as other operational reasons. If the economic life

assigned to the assets proves to be too long, impairment losses or higher depreciation expense could result in future periods, while longer

actual useful life will decrease the depreciation expense in future years. The assets’ residual values and useful lives are reviewed, and

adjusted if appropriate, at least at each year-end.

(B) Estimated impairment of vessels and equipment

The carrying amount of a vessel is reviewed for potential impairment whenever events or changes in circumstances indicate that the

carrying amount may not be fully recoverable. In such instances, an impairment charge would be recognized if the recoverable amount

(higher of value-in-use and fair value) and its eventual disposition is less than the vessel's carrying amount.

When examining internal indicators of impairment, management assesses a number of factors, such as the vessels’ backlog, operating

cash flows, financial plans, and the Group’s business strategy. Management also considers the physical condition when assessing the

earning capacity of an asset. In examining external indicators for impairment, management considers factors such as the economic

Annual Report 2023 Consolidated Financial Statement 55

cycle and macro-economic fluctuations, global oil price movement, factors affecting governmental exploration plans, as well as other

factors impacting the customers’ capex plans and demand for seismic services.

The recoverable amounts of the vessels are ordinarily determined using value in use calculations. Each vessel, along with the seismic

equipment attached or allocated to the vessel, is considered to be a cash generating unit being tested for impairment. In developing

estimates of future cash flows, the Group must make assumptions about future day-rates, utilization, operating expenses, capital

investments, residual values and remaining useful life of the vessels. These assumptions are based on historical trends as well as future

expectations. Although management believes that the assumptions used to evaluate potential impairment are reasonable and

appropriate, such assumptions may be highly subjective. Significant and unanticipated changes in these assumptions could result in

impairments in the future periods. Currently, there is elevated uncertainty with regards to the future outlook in terms of utilization and day-

rates. To the extent that the future actual revenues achieved prove to be less than forecasted, impairment losses on vessels and

equipment may result.

Note 7 Property, plant and equipment sets out information about the impairment testing performed in the current year.

The assessment of the Company for the appropriateness of the use of the going concern basis is disclosed in Note 2.1 Basis of preparation.

(D) Impairment of financial assets

The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are either measured at amortised

cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon the consolidated entity's

assessment at the end of each reporting period as to whether the financial instrument's credit risk has increased significantly since initial

recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain.

Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit loss

allowance is estimated. This represents a portion of the asset's lifetime expected credit losses that is attributable to a default event that is

possible within the next 12 months. Where a financial asset has become credit impaired or where it is determined that credit risk has

increased significantly, the loss allowance is based on the asset's lifetime expected credit losses. The amount of expected credit loss

recognised is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument

discounted at the original effective interest rate.

For financial assets mandatorily measured at fair value through other comprehensive income, the loss allowance is recognised in other

comprehensive income with a corresponding expense through profit or loss. In all other cases, the loss allowance reduces the asset's

carrying value with a corresponding expense through profit or loss.

(E) Provision for liabilities

Provisions are recognised when the consolidated entity has a present (legal or constructive) obligation as a result of a past event, it is

probable the consolidated entity will be required to settle the obligation, and a reliable estimate can be made of the amount of the

obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the

reporting date, taking into account the risks and uncertainties surrounding the obligation. If the time value of money is material, provisions

are discounted using a current pre-tax rate specific to the liability. The increase in the provision resulting from the passage of time is

recognised as a finance cost.

(F) Income tax

The consolidated entity is subject to income taxes in the jurisdictions in which it operates. Significant judgement is required in determining

the provision for income tax. There are many transactions and calculations undertaken during the ordinary course of business for which

the ultimate tax determination is uncertain. The consolidated entity recognises liabilities for anticipated tax audit issues based on the

consolidated entity's current understanding of the tax law. Where the final tax outcome of these matters is different from the carrying

amounts, such differences will impact the current and deferred tax provisions in the period in which such determination is made.

Deferred tax assets are recognised for deductible temporary differences only if the consolidated entity considers it is probable that future

taxable amounts will be available to utilise those temporary differences and losses.

Annual Report 2023 Consolidated Financial Statement 56

5 Segment information

The company’s seismic services and operations are conducted and monitored within the Group as one business segment.

Primary reporting format – types of revenues

All figures in USD 000's 2023 2022 Contract revenue 34,635 20,164 Total 34,635 20,164

Revenues from the company’s largest customer in 2023 amounted to 62% of the Group’s total annual revenues. In 2022 the largest

customer contributed to 26% of total revenues.

Secondary reporting format – geographical segments

All figures in USD 000's 2023 2022 REVENUE Europe, Middle East & Africa (EMEA) 28 5,126 North & South America (NSA) 18,152 5,150 Asia Pacific (APAC) 16,455 9,888 Total 34,635 20,164 SEGMENT ASSETS Europe, Middle East & Africa (EMEA) 4,289 22,368 North & South America (NSA) 26,721 25,481 Asia Pacific (APAC) 23,013 18,017 Total 54,023 65,866 CAPITAL EXPENDITURE Europe, Middle East & Africa (EMEA) 268 3,895 North & South America (NSA) 530 - Asia Pacific (APAC) 1,947 - Total 2,745 3,895

A substantial portion of the property and equipment is mobile due to SeaBird’s world-wide operation. Asset locations at the end of a

period are not necessarily indicative of the geographic distribution of the revenues generated by such assets during the period.

Geographic distribution of assets is based upon location of physical ownership. The geographic distribution of revenues is based upon

location of performance. Capital expenditures are based on the location of the company that is making the investment.

6 Revenue

Revenue split on type of contract

All figures in USD 000's 2023 2022 Contract revenue - 4,917 Time-charter revenue 34,607 15,211 Other revenues 28 36 Total revenues 34,635 20,164

The amount of revenue as presented above represents the revenue net of discounts. Within the year an amount of USD 2.6 million has

been provided as a discount to the associate.

Annual Report 2023 Consolidated Financial Statement 57

Time of revenue recognition

All figures in USD 000's 2023 2022 At a point in time - - Over time 34,635 20,164 Total revenues 34,635 20,164

Set out below is the amount of revenue recognized from

All figures in USD 000's 2023 2022 Amounts included in contract liabilities at the beginning of the year 1,467 368 Amounts included in contract liabilities at the end of the year 469 1,467

7 Property, plant and equipment

The company’s capital expenditures in 2023 was USD 2.7 million, where approximately USD 1.7 million was related to the 5-year special

purpose survey of the “Eagle Explorer”, the remaining relates to ordinary maintenance expenditures for the company. The total capital

expenditures for the vessel in 2022 was USD 3.9 million, where the lion share relates to the finalization of the reactivation and upgrade for

the “Fulmar Explorer”.

Dry-dock All figures in USD 000's Vessels and costs and Office equipment equipment equipment Total Opening net book amount as of 1 January, 2022 41,773 4,170 106 46,050 Additions 522 3,373 - 3,895 Sale of assets -254 -34 - -288 Depreciation -5,458 -1,449 -53 -6,960 Impairment - - - - Assets reclassified (to)/from held for sale 285 - - 285 Other - - - - Net book amount as of 31 December 2022 36,868 6,060 53 42,982 Cost 49,858 9,009 159 59,026 Accumulated depreciation and impairment -12,990 -2,948 -106 -16,044 Net book amount as of 31 December 2022 36,868 6,060 53 42,982 Opening net book amount as of 1 January, 2023 36,868 6,060 53 42,982 Additions 2,150 595 - 2,745 Depreciation -4,287 -1,933 -53 -6,274 Net book amount as of 31 December 2023 34,731 4,722 - 39,453 Cost 51,124 9,603 159 60,886 Accumulated depreciation and impairment -16,392 -4,881 -159 -21,433 Net book amount as of 31 December 2023 34,731 4,722 - 39,453

Annual Report 2023 Consolidated Financial Statement 58

Impairment assessment

The Group performed impairment reviews and determined the value in use of its fleet based on discounted estimated future cash flows

carried out in accordance with the Group's policy described in Note 2.9 Impairment of non-financial assets. The assessment has not

resulted in any impairment loss.

The Group’s value in use model includes estimates of the expected future cash flows for each vessel along with the immovable and

allocated movable seismic equipment. Cash flows are based on day-rates, utilization, operating costs and required capital investments

over the remaining life of the vessel. These cash flows are discounted at the Group’s weighted average cost of capital (WACC) which

approximates 12.0% to estimate the present value, which is compared to book value at the date of the assessment. The impairment

review is performed on the following vessels:

Asset Valuation approach Eagle Explorer Value in use Fulmar Explorer Value in use

The main assumptions used in the calculation of the value in use of the Group’s vessels are:

- Day-rates are based on an approximately 10% discount to awarded and probable projects expected to materialize. The rates

are increased by 2% per year.

- Utilization is based on awarded and probable projects expected to materialize. Utilization beyond is based on the historic

average utilization of the industry. Utilization remains constant until the end of the vessel’s useful life.

- Operating and capital expenditure is based on historic averages and the Group’s operating budget and business plan. Expenses

increase by 2% per year.

WACC is calculated using a standard WACC model in which cost of equity, cost of debt and capital structure are the key parameters.

WACC has been set at 12.2% (2022: 13.0%). The WACC is estimated on a post-tax basis to be in line with the post-tax cash flows used in

the model.

The calculation of value in use is sensitive to changes in the key assumptions, which are considered to be the day-rates, utilization rates,

daily OPEX and the discount rate. Management has performed a sensitivity analysis on these assumptions in order to assess the impact

on the recoverable amounts had the key assumptions been changed in the negative direction, all other things being equal.

The following apply to Fulmar Explorer:

- A decrease in day-rates by 10% over the remaining useful life of the vessels would result in an impairment loss of USD 3.3 million.

- A decrease in utilization rates by 10%-points over the remaining useful life of the vessels would result in an impairment loss of USD

6.2 million.

- An increase in operating expenses by 10% over the remaining useful life would not induce impairment loss.

- An increase in the WACC by 5%-points (41% increase) would not induce impairment loss.

The following apply to Eagle Explorer:

- A decrease in day-rates by 10% over the remaining useful life of the vessels would result in an impairment loss of USD 0.9 million.

- A decrease in utilization rates by 10%-points over the remaining useful life of the vessels would result in an impairment loss of USD

5.1 million.

- An increase in operating expenses by 10% over the remaining useful life would not induce impairment loss.

- An increase in the WACC by 5%-points (41% increase) would not induce impairment loss.

Given the inherent imprecision and corresponding importance of the key assumptions used in the impairment tests, it is possible that

changes in the future conditions may lead management to use different key assumptions, which could require a material change in the

carrying amount of the vessels. The risks associated with the judgments, estimates and assumptions used in this exercise are discussed in

Note 4 Critical accounting estimates and judgments (B).

The impairment assessment on the Group’s fleet is carried out in accordance with the Group's policy described in Note 2.9 Impairment of

non-financial assets to the financial statements.

Mortgages and assets

The Group has a loan and guarantee facilities with Sparebank 1 SMN with a total frame of USD 15.6 million (see note 18 Interest bearing

loans and borrowings). The facilities are secured with 1

priority mortgages over the vessels, assignment of the vessel’s earnings, insurances,

trade receivables, bank accounts and inventories.

Annual Report 2023 Consolidated Financial Statement 59

Other payables amounted to USD 1.0 million as of 31 December 2023 are secured by 2nd priority mortgages on the vessels.

8 Income tax expense

SeaBird Exploration Plc is subject to taxation in Norway which impose corporation tax at the rate of 22% and the majority of its subsidiaries

in Cyprus. The Group is also subject to taxation in various other jurisdictions because of its global operations. The Group continues to

evaluate its historical tax exposures which might change the reported tax expense.

All figures in USD 000's 2023 2022 Current period 199 33 Adjustment for prior periods 73 -140 Total current tax 272 -107 All figures in USD 000's 2023 2022 Continuing operations profit/(loss) before income tax 3,399 -11,712 Tax arising at the rate of 22% 748 -2,577 Effect of tax adjustments in arriving at taxable profit and tax losses -748 2,577 Foreign operations taxed at different rates - - Tax effect current year 199 33 Reassessment of prior year tax provisions 73 -140 Total tax expense/(reversal) attributable to continuing operations 272 -107 All figures in USD 000's 2023 2022 Attributable to continued operations 272 -107 Attributable to discontinued operations - - All figures in USD 000's 2023 2022 Long term tax payables - - Current portion of tax liabilities 1,323 1,000 Total tax liabilities 1,323 1,000

Income taxes, penalties, and interest

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in

the countries where SeaBird operates and generates taxable income. SeaBird establishes provisions where appropriate on the basis of

amounts expected to be paid to the tax authorities.

In deciding whether deferred tax assets are to be recognized in connection to unutilized tax losses, management considers the subsidiary’s

history of taxable losses and the probability of generating taxable profits before the unused tax losses expire. Management’s assessment

has concluded that no deferred tax assets should be recognized as at year-end.

9 Multi-client library

The components of the multi-client library are summarized as follows:

All figures in USD 000's 2023 2022 Opening net book amount as of 1 January 54 179 Amortization -54 -139 Other - 14 Net book amount as of 31 December - 54

Annual Report 2023 Consolidated Financial Statement 60

Costs directly incurred in acquiring, processing and otherwise completing multi-client seismic surveys, including vessel's depreciation, are

capitalized to the multi-client library. Please see Note 2.9 – Impairment of non-financial assets – for the capitalization and amortization

policies related to the multi-client library.

10 Trade receivables and contract assets

Trade receivables

All figures in USD 000's 2023 2022 Trade receivables gross 11,704 16,093 Less allowance for expected credit losses -2,062 -3,665 Trade receivables – net 9,642 12,428

Of the USD 11.7 million in gross trade receivables, USD 1.8 million relates to receivables from associated companies (Note 19 Subsidiaries

and associates within the Group and Note 30 Related-party transactions).

The average credit period on sales of goods is approximately 30 days. None of the trade receivables that have been written off is subject

to enforcement activities.

Allowance for ECL and write offs, net of reversals

The movement in allowance of expected credit losses that has been recognized for trade receivables and contract assets, as well as the

methodology under which the allowance has been estimated, are presented in Note 3.1 Financial risk factors.

All figures in USD 000's 2023 2022 Loss on trade receivables 2,062 - Reversed write offs - - Allowance for ECL and write offs, net of reversals 2,062 -

11 Other current assets

Other current assets overview

All figures in USD 000's 2023 2022 Prepaid expenses and deposits 165 1,471 Contract costs 95 2,261 Other current assets 998 2,387 Total other current assets 1,258 6,119

The contract costs relate to preparation and mobilization of the vessel and equipment to the intended contract area, capitalized as

“costs to fulfil a contract” under the Group’s accounting policy described in Note 2.18 Revenue recognition and Note 2.24 Costs to fulfil

a contract.

The contract costs at 31 December 2023 are fully amortized within Q1 2024. The total amount of contract costs recognized as at 31

December 2022 have been amortized in the profit or loss in the financial year 2023. No impairments have been recognized in the year in

respect of contract costs assets.

12 Asset held for sale

Assets held for sale have been marketed for sale or have been agreed sold but the sales process have not been concluded. The valuations

represent sales price or estimated market values for the equipment partly substantiated by statements from independent experts. The

Company had nil asset held for sale as at 31 December 2023. USD 0.2 million was held for sale as at 31 December 2022, the sale was

finalized during 2023 in line with book values of 31 December 2022.

Annual Report 2023 Consolidated Financial Statement 61

All figures in USD 000's 2023 2022 Equipment - 175 Total assets held for sale - 175

13 Inventories

The company recognized USD 1.2 million in fuel and lube oil consumption as expenses in 2023 (2022: USD 3.4 million).

All figures in USD 000's 2023 2022 Marine gas oil 726 457 Lube oil 399 186 Total inventories 1,125 643

14 Cash and bank balances

The restricted cash is held in blocked bank accounts related to payroll tax, employees’ prepaid taxes and rent deposits.

All figures in USD 000's 2023 2022 Restricted cash 42 57 Cash and cash equivalents 2,176 851 Cash and bank balances 2,218 908

15 Share capital and share options

Number of authorized shares

2023 2022 Number of ordinary shares 91,000,000 91,000,000 Nominal value per share EUR 0.17 EUR 0.17

Share Capital

All figures in USD 000's 2023 2022 Share capital 16,036 16,036 Share premium 20,908 20,908 Paid in capital 36,944 36,944

Number of shares issued

2023 2022 Total number of shares issued at 1 January 80,476,265 34,276,665 New shares issued - 46,199,600 Reclassification 6 - Total number of shares as per 31 December 80,476,271 80,476,265

In January 2022 the Company issued 14,000,000 new shares at a premium price of NOK 2.25 and increased its share capital by EUR

2,380,000 to EUR 8,207,033.

Annual Report 2023 Consolidated Financial Statement 62

In May 2022 the Company issued 3,500,000 new shares at a premium price of NOK 2.25 and increased its share capital by EUR 595,000 to

EUR 8,802,033.

In July 2022 the Company issued 26,699,600 new shares at a premium price of NOK 3.00 and increased its share capital by EUR 4,538,932

to EUR 13,340,965.

In November 2022 the Company issued 2,000,000 new shares at a premium price of NOK 3.00 and increased its share capital by EUR

340,000 to EUR 13,680,965.

In December 2022 the Company reduced its share premium by USD 16,233,336 with the purpose to write off losses of the Company. The

share premium was further reduced by USD 4,965,858 in relation with the distribution of the Company’s shares in Green Minerals AS to its

shareholders. The distribution was completed on 25 January 2023.

In March 2023 the Company reallocated 6 shares that has been held outside the Norwegian VPS in relation with the reallocation of the

shareholder register from Cyprus to Norway. The shares were registered with a premium price of nil and increased its share capital by EUR

There are no share classes and no voting restrictions on the shares.

Employee Share Option Plans

The employee share option program consists of 2.3 million warrants and options as of 31 December 2023. The options will vest over period

of three years from the grant date, while the Warrants will vest over a period of two years. One third of the options granted will vest one

year after grant date, one third of the options granted will vest two years after grant date and one third of the options granted will vest

three years after grant date; similar, the warrants will be distributed over two periods. All options and warrants are exercisable at any time

within one year from the corresponding vested dates. The options and the warrants have an average exercise price of NOK 6.23.

Estimated value of the share options granted, reduced for services not rendered, as at 31 December 2023, is presented in equity as share

options granted.

Number of options and warrants outstanding Opening amount as of 1 January, 2023 3,140,000 Granted during the year - Forfeited during the year - Exercised in year - Expired in year -820,000 Closing amount at 31 December 2023 2,320,000 of which is vested 1,166,667 of which is non-vested 1,153,333 Total options 2,320,000

Share based payments effect on the group’s profit or loss amounts to USD 0.2 million for 2023 and USD -0.2 million for 2022. The total value

of share options granted is calculated using the Black-Scholes model, assuming that all the options will be exercised. The fair value

determined at the grant date is expensed over the vesting period of the options for the options granted less expected number of forfeited

options. The calculation is based on:

- Trailing 252 days logarithmic return volatility of 43%

- Given exercise price for the given option trance the given year, averaging to NOK 6.23

- Time to maturity for the given option tranches

- Assume no dividends

- A risk-free interest rate of 5.6 % per annum

16 Trade and other payables

Contract liability is income earned before contract start-up and accrued over the contract period. The accrued amount at 31 December

2023 was related to one contract starting up in late 2023 and was completed in early 2024.

Annual Report 2023 Consolidated Financial Statement 63

The Group has a credit line with Glander International Bunkering, this vendor credit is secured with second priority mortgages over the

vessels.

All figures in USD 000's 2023 2022 Trade payables 3,821 9,051 Contract liability 469 1,467 Accrued interest on taxes - 48 Accrued interest on loans - 172 Vendor credit - 2,341 Accrued vessel and office costs 1,826 3,124 Payroll related liabilities 1,126 1,286 VAT and other payables 172 802 Total trade and other payables 7,414 18,291

17 Provisions and other liabilities

Provisions and other liabilities

All figures in USD 000's 2023 2022 Legal provision 488 331 Other liabilities related arbitration awards 1,761 - Total Provisions and other liabilities 2,249 331

Other liabilities relate to two arbitrations which were awarded against two fully owned subsidiaries within the year under review, with the

final amount due being USD 1.8 million. The Profit & Loss impact for the year is USD 1.4 million which has been recognised in other expenses

(see Note 21 Other income (expenses), net).

Changes in provisions

All figures in USD 000's 2023 2022 Opening book amount as of 1 January 331 331 Additional provision in the year 1,430 - Reclassification 488 - Closing book amount as of 31 December 2,249 331

An amount of USD 0.5 million has been reclassified from Other Payable in the 2022 Annual report to Provision and other liabilities in the

2023 annual accounts.

18 Interest bearing loans and borrowings

Sparebank 1 SMN term loan and guarantee facility

Within the year, the Group received a new bank facility for the amount of USD 14.2m for the repayment of the facilities which matured in

June 2023. The effective loan interest was 12.3% in 2023 (2022: 8.8%). The loan facility carries quarter instalments of USD 0.77 million and

has a maturity date on 30 of June 2026. The new facility includes also a guarantee of USD 1.4 million which matures on 05 of July 2026. The

loan is recognized in the books at par value. The facilities are secured with 1

priority mortgages over the vessels, assignment of the vessel’s

earnings, insurances, trade receivables, bank accounts and inventories.

Seabird has a USD 14.2 million bank facility where the balance is USD 13.5 million at year end 2023.

Sparebank 1 SMN loan financial covenants:

- Minimum free cash: USD 1 million

Annual Report 2023 Consolidated Financial Statement 64

- Positive working capital excluding current portion of interest bearing debt

- Equity ratio 45 %

The Group is in compliance with all the financial and non-financial bank loan covenants as of 31 December 2023, with the exception of

the value of hull and machinery insurances which shall be equal to at least 80% of the vessel’s market value. Due to the substantial

increased of the market value of the Company’s two vessels, the value of the hull and machinery insurances has fallen below the 80%

threshold per 31 December 2023. The Company has received a waiver from the lender in respect of this covenant.

All figures in USD 000’s 2023 2022 Sparebank 1 SMN Non-current 10,543 - Current 3,061 15,687 Other Non-current 2,572 - Current 58 600 Total 16,234 16,287

All figures in USD 000’s 2023 2022 Opening book amount as of 1 January 16,287 15,327 Receipts from borrowings 14,200 11,501 Conversion of borrowing 2,340 - Interest on loans and borrowings 2,400 1,616 Repayment of borrowings -16,997 -10,606 Interest paid -1,996 -1,551 Closing book amount as of 31 December 16,234 16,287

An amount of USD 2.3m which was included in other payables as at 31 December 2022, was converted into a loan within the year under

review. The loan does not carry any instalments and there is no specified maturity date.

19 Subsidiaries and associates within the Group

Company Shareholding and voting Country of Owner rights incorporation 2023 2022 Aquila Explorer Inc. Seabird Exploration PLC Panama 100% 100% Biliria Marine Company Limited** Seabird Exploration PLC Cyprus 100% 100% GeoBird Management AS Seabird Exploration PLC Norway 100% 100% Green Energy Group AS* Seabird Exploration PLC Norway 100% 100% Harrier Navigation Company Limited Seabird Exploration PLC Cyprus 100% 100% Hawk Navigation Company Limited** Seabird Exploration PLC Cyprus 100% 100% Munin Navigation Company Limited** Seabird Exploration PLC Cyprus 100% 100% Oreo Navigation Company Limited** Seabird Exploration PLC Cyprus 100% 100% Raven Navigation Company Limited** Seabird Exploration PLC Cyprus 100% 100% Sana Navigation Company Limited Seabird Exploration PLC Cyprus 100% 100% Seabed Navigation Company Limited Seabird Exploration PLC Cyprus 100% 100% SeaBird Crewing Mexico S. DE R.L. DE C.V. Seabird Exploration Norway AS Mexico 100% 100% SeaBird Exploration Americas Inc. Seabird Exploration PLC USA 100% 100%

Annual Report 2023 Consolidated Financial Statement 65

SeaBird Exploration Asia Pacific PTE. Ltd. Seabird Exploration PLC Singapore 100% 100% SeaBird Exploration Crewing Limited Seabird Exploration PLC Cyprus 100% 100% SeaBird Exploration Cyprus Limited Seabird Exploration PLC Cyprus 100% 100% SeaBird Exploration Finance Limited Seabird Exploration PLC Cyprus 100% 100% SeaBird Exploration FZ-LLC Seabird Exploration PLC UAE 100% 100% SeaBird Exploration Multi-Client Limited Seabird Exploration PLC Cyprus 100% 100% SeaBird Exploration Nigeria Ltd. Seabird Exploration Norway AS Nigeria 100% 100% SeaBird Exploration Norway AS Seabird Exploration PLC Norway 100% 100% SeaBird Exploration Private Limited Seabird Exploration PLC India 26% 26% SeaBird Exploration Shipping AS Seabird Exploration PLC Norway 100% 100% SeaBird Exploration Vessels Limited Seabird Exploration PLC Cyprus 100% 100% SeaBird Seismic Mexico S. DE R.L. DE C.V. Seabird Exploration Norway AS Mexico 100% 100% Susco AS* Seabird Exploration PLC Norway 100% 100%

*) Green Energy Group AS and Susco AS were dissolved 7 March 2024.

**) Biliria Marine Company Limited, Hawk Navigation Company Limited, Munin Navigation Company Limited, Oreo Navigation Company

Limited and Raven Navigation Company Limited field for voluntary liquidation with the Cyprus court on 29 December 2023. The voluntary

liquidation process is expected to be completed in 2024.

Seabird Exploration Private Limited is recognised using the equity accounting principle. For further information, please refer to Note 2.6

Interests in joint operations and associates.

Green Minerals AS was distributed to shareholders on 25 January 2023, the remaining 446,801 (approximately 3% of the outstanding shares)

shares is booked at fair value through the profit and loss. During the prior year, Green Minerals AS was considered a subsidiary with 51%

shareholding and voting rights.

The company has recognized the following balances for its investment in other companies:

All figures in USD 000's 2023 2022 Associates 65 224 Other investments 262 - Total other financial items, net 327 224

Other investments represent the shareholding in Green Minerals AS, which is recognized at fair value through the profit and loss

Equity accounted investees:

All figures in USD 000's 2023 2022 Opening book amount as of 1 January 224 - Dividends received -119 - Share of profit / (loss) included in net financials -26 224 Impairments -14 - Closing book amount as of 31 December 65 224

Annual Report 2023 Consolidated Financial Statement 66

Associated company:

Year ended 31 December All figures in USD 000's 2023 2022 Current assets 2,047 11,875 Current liabilities -1,795 -11,012 Net assets 252 863 Share of net asset 65 224 Revenue 17,324 7,511 Expenses -17,423 -6,650 Total comprehensive income -99 861 Share of profit / (loss) -26 224

Asset and liabilities held for distribution:

Year ended 31 December All figures in USD 000's 2023 2022 Cash and cash equivalents - 2,156 Trade and other receivables - 169 Receivables from related parties - 8 Total Assets - 2,333 Trade and other payables - 142 Total Liabilities - 142

20 Other financial items, net

All figures in USD 000's 2023 2022 Foreign exchange gain 367 482 Foreign exchange loss -599 -293 Other financial income 3,995 26 Other financial expense -224 -690 Total other financial items, net 3,539 -475

Other financial income represents the Group’s profit from distributing the Group’s majority shareholdings in Green Minerals AS to its

shareholders (USD 3.7 million) and the fair value gain through the profit and loss for the remaining shares held (USD 0.3 million). The

distribution was completed on 25 January 2023.

21 Other income (expenses), net

All figures in USD 000's 2023 2022 Net client reimbursements 189 1,304 Meals and accommodation 523 171 Loss on trade receivables -2,062 - Other income (expense) -1,589 10 Total other income (expense) -2,939 1,485

Annual Report 2023 Consolidated Financial Statement 67

Loss on trade receivables relates to movement in allowance of expected credit losses. Please see Note10 Trade receivables and contract

assets for more information on the loss on trade receivables.

Two fully owned subsidiaries of the Group were part of separate arbitrations that were awarded against the respective companies within

the year under review. The Profit & Loss impact for the year is USD 1.4 million which has been recognised in other income/(expenses) (see

Note 17 Provisions and other liabilities).

22 Expenses by nature

Cost of sales

All figures in USD 000's 2023 2022 Charter hire - - Seismic and marine expenses 6,298 13,974 Other operating expenses 2,599 90 Cost of sales 8,897 14,064Crew and crew related costs 10,165 4,972 Total charter hire and operating expenses 19,062 19,036

Selling, general and administrative expenses

All figures in USD 000's 2023 2022 Staff cost and Directors’ remuneration 1,200 2,159 Legal and professional 1,678 1,171 Travel expenses 72 21 Rent and other office expenses 73 90 Other expenses SG&A 946 448 Selling, general and administrative expenses 3,969 3,889

Included in Rent and office expenses is the rental cost of office premises and small items of office equipment following the ‘short-term

leases’ and ‘low-value assets’ exemptions adopted by the Group.

23 Audit expenses

All figures in USD 000's 2023 2022 Statutory audit 334 198

An amount of USD 0.3 million relates to prior year under provision and is included under legal and professional expenses.

Annual Report 2023 Consolidated Financial Statement 68

24 Employee benefit expense

All figures in USD 000's 2023 2022 Crew salaries and benefits 8,415 3,433 Salary costs for staff 691 1,602 Social security cost for staff 183 208 Pension cost for staff 186 172 Directors’ remuneration 112 142 Insurance and other costs 28 35 Total employee benefit expense 9,615 5,592 Including accrued costs relating to the employee stock option plan 153 595 Average number of employees and temporary crew contractors 76 67

25 Finance expense

All figures in USD 000's 2023 2022 Interest on loans and borrowings 2,400 1,616 Interest on suppliers' balances 165 237 Interest on tax liabilities 23 1 Total finance expense 2,588 1,854

26 Earnings per share

Basic earnings per share are calculated by dividing the profit attributable to equity holders of the company by the weighted average

number of ordinary shares in issue during the year (Note 15 Share capital and share options).

All figures in USD and/or 000's except earnings per share 2023 2022 Number of shares Number of ordinary shares in issue at period end 80,476 80,476 Weighted average number of ordinary shares in issue 80,476 59,228 Profit/(Loss) attributable to equity holders of the company Profit/(Loss) attributable to ordinary shares 3,127 -12,244 Profit/(Loss) attributable to ordinary shares for continue operation 3,127 -11,605 Profit/(Loss) attributable to ordinary shares for discontinue operation - -639 Basic earnings per share From continuing operations 0.04 -0.20 From discontinued operations - -0.01 Total basic earnings per share 0.04 -0.21

The total outstanding amount of shares in the company was 80,476,271 common shares at 31 December 2023 with a nominal value of

EUR 0.17 per share. There are no share classes. The weighted average number of ordinary shares issued was 80.5 million in 2023 and 59.2

million in 2022.

Annual Report 2023 Consolidated Financial Statement 69

27 Dividends

No dividend was distributed for the year ended 31 December 2022 and no dividend is proposed to be distributed for the year ended 31

December 2023. Please see note 33 Subsequent events for more information on shareholder distribution.

28 Commitments and contingencies

i) The Group has a tax refund claim of USD 1.5 million in India, the realization of which is considered probable. In addition, the company

has a tax penalty claim of USD 1.5 million from Indian authorities related to contracts in 2013 and 2014, the outcome of which is not

assessed as probable. It is uncertain when and if the cases will be concluded.

ii) One of the Group’s Norwegian wholly owned subsidiary has received a summons demanding compensation "at the court's discretion"

in connection with a de-rigging of seismic equipment from a third-party vessel the company managed in 2020-2021. The company

considers the claim to be groundless, and no provision has therefore been made in the accounts. A response to the summons has been

filed and the main hearing in the district court is scheduled for December 2024.

iii) During 2020 the Group sold it’s shares in Osprey Navigation Co. Inc. Operating activities in this company ceased in 2020 with the sale

of Osprey Explorer for demolition. The sale of the shares generated a non-cash profit of USD 3.0 million as an old balance sheet item

previously recorded as a tax liability in Seabird accounts remained in Osprey Navigation Co. Inc upon the sale and therefore was de-

recognized in the Seabird consolidated financial statements. Although unlikely, it cannot be ruled out that the creditor may seek to

recover the remaining balance from other Group companies, including the parent company SeaBird Exploration Plc. However, to date

there is no indication that this will be the case. In this respect it should also be considered that additional tax exposure may incur related

to VAT, currency risk and delayed interest charges, which may increase a future potential liability.

iv) In March 2022 a wholly owned subsidiary of the Group (the “Subsidiary”), received a letter from the London Court of International

Arbitration (“LCIA”), based on which a counterparty (“the Claimant”) submitted a request for arbitration for the adjudication of disputes

arose between the two parties under a representation agreement signed in 2018. As at year end 31 December 2022 and as of the date

of signing off the consolidated Financial Statements being 23 June 2023, no final award was being issued by the LCIA. The management

of the Group as at 31 December 2022 and as at the date of signing the respective Consolidated Financial Statements, performed an

assessment over the outcome of the above described arbitration, and concluded that the possibilities of receiving an award by the LCIA

against the Subsidiary and in favour of the Claimant were remote. Therefore, the management on the basis of its assessment, neither

informed the external auditors over the existence of this arbitration which was in progress nor included any disclosures over this matter in

the Consolidated Financial Statements for the year ended 31 December 2022, in line with the provisions of IAS 37 Contingent Liabilities

and Contingent Assets. On 7 November 2023, LCIA issued a final award against the Subsidiary for the above arbitration, based on which

it should pay to the Claimant an amount of USD 1.02m, plus other sundry costs (see Note 21 Other income (expenses), net). Following the

final decision issued by the LCIA, it proved that the management’s assessment as at 31 December 2022 in regards to this case was wrong

and as a result the matter should have been disclosed in the Consolidated Financial Statements for the year ended 31 December 2022.

The payable amount of USD 1.1m remains outstanding as at 31 December 2023 and is disclosed in Note 17 Provisions and other liabilities.

29 Leases

The Group as a lessee

There are no lease agreements for assets at 31 December for 2023 and 2022.

The Group has adopted IFRS 16 "Leases from 1 January 2019. IFRS 16 sets out a model for identification of lease arrangements and their

treatment in financial statements. Long-term lease contracts usually need to be brought on to the balance sheet.

The Group as a lessor

During 2023 the company did the following short-term leases:

- Eagle Explorer – approximately 10 months

- Fulmar Explorer - 12 months

During 2022 the company did the following short-term leases:

- Eagle Explorer – approximately 5 months

- Fulmar Explorer - approximately 7 months

Annual Report 2023 Consolidated Financial Statement 70

30 Related-party transactions

Key management and board compensation

Key management is defined as Finn Atle Hamre (CEO) and Sveinung Alvestad (CFO).

Board include Ståle Rodahl (Chairman), Øivind Dahl-Stamnes, Hans Christian Andersson, Sverre Strandenes and Odd Sondre Svalastog

Helsing.

All figures in USD 000's 2023 2022 Management salaries and other short-term employee benefits 512 406 Post-employment benefits 29 38 Board remuneration 112 142 Consulting agreements (board members) 176 61 Total key management and board compensation 829 647

Loans from related parties

No loans were granted nor outstanding in 2023. During the year 2022, short term loans were granted to a subsidiary of the Group

amounting to a total of NOK2.660.000 from related parties. The loans bore interest of 5% resulting to NOK133.000 interest charge. All

amounts were received and repaid within the year 2022.

Loans to related parties

The Company has no loans to related parties.

Balances and transactions with related parties

As of 31 December 2023, the Group has recorded USD 1.8 million (2022: USD 8.8 million) in trade receivables from associated company.

The net total revenue recognised by the Group of the associated company for the year 2023 was USD 7.4 million (2022: USD 5.0 million),

plus an amount of USD 0.02m representing other income.

Commitments and contingencies to related parties

The Company has neither commitments nor contingencies to related parties.

Shareholding

Management and the board of directors, as of 31 December 2023 held the following shares on own account:

Ordinary Outstanding Outstanding Name Title % ownership shares options* warrants* Ståle Rodahl Chairman 3,255,775 4.05% 240,000 360,000 Board Hans Christian Anderson Member - - - - Board Odd Sondre Svalastog Helsing Member 1,208,333 1.50% - - Board Øivind Dahl-Stamnes Member 70,000 0.09% - - Board Sverre Strandenes Member - - - - Finn Atle Hamre CEO 15,125 0.02% 740,000 - Sveinung Alvestad CFO 44,843 0.06% 600,000 -

*Please see Note 15 Share capital and share options for further information of the company's share option program.

Annual Report 2023 Consolidated Financial Statement 71

On 24 February 2023, Mr Sondre Helsing, Board member, has through his wholly owned company Hubris Industrier AS today purchased

325,000 shares in Seabird Exploration Plc at a price of NOK 4.54 per share. Following this transaction Mr Helsing owns 1,208,333 shares in

the Company.

On 24 November 2023, Mr Øivind Dahl-Stamnes, Board member, has through his wholly owned company Dorris AS purchased 6,800 shares

in Seabird Exploration Plc at a price of NOK 5.08 per share. Following this transaction Mr Dahl-Stamnes owns 70,000 shares, representing

approximately 0.1% of the outstanding shares in the Company.

On 16 November 2023, Mr Øivind Dahl-Stamnes, Board member, has transferred 43,200 shares from his personal account to his wholly

owned company Dorris AS. Mr. Dahl-Stamnes holding in Seabird Exploration Plc remains unchanged at 63,200 shares, representing

approximately 0.1% of the outstanding shares.

On 9 October 2023, Mr Øivind Dahl-Stamnes, Board member, has transferred 20,000 shares from his personal account to his wholly owned

company Dorris AS. Mr. Dahl-Stamnes holding in Seabird Exploration Plc remains unchanged at 63,200 shares, representing approximately

0.1% of the outstanding shares.

Purchase of services from board members

Storfjell AS, a company controlled by Ståle Rodahl (Chairman of the Board of the Company), has invoiced Seabird Exploration PLC USD

0.2 million related to various consultancy work performed. The comparable figure for 2022 was USD 0.1 million.

31 Financial instruments

Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group.

The Group has the following types of financial assets that are subject to the expected credit loss model:

- trade receivables

- cash and cash equivalents and restricted bank balances

In general, vessels on time charter are prepaid, while vessels contracted to oil companies usually have payment terms on an average of

approximately 30 days. Interest is charged on outstanding overdue trade receivables.

The Group always measures the loss allowance for trade receivables (including lease receivables) and contract assets at an amount

equal to lifetime expected credit loss (ECL). The expected credit losses on trade receivables are estimated by carrying out an individual

assessment on each outstanding balance. Management takes into account the counterparty's financial position, past default

experience, industry knowledge and market reputation. Management also considers macroeconomic factors, such as general economic

conditions, factors specific to the oil and seismic industry and an assessment of both the current and the forecast direction of conditions

at the reporting date.

There has been no change in the estimation techniques or significant assumptions made during the current reporting period.

The Group writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and there is no

realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or has entered into bankruptcy proceedings.

The collection of receivables is closely monitored by management.

With regards to cash and cash equivalents, the Group measures its expected credit loss by reference to the banks’ external credit ratings

and relevant published default and loss rates, taking into consideration the EUR 100,000 per bank deposit protection guaranteed under

the EU Deposit Guarantee Scheme. The Norwegian Bank’s Guarantee Fund covers deposits up to NOK 2 million per depositor per bank.

The Group monitors changes in external credit ratings and default rates and compares these to credit risk at initial recognition. Cash held

at banks with investment grade are assessed as low credit risk and belong to Stage 1. As the Group’s deposits are held in banks with high

credit quality ratings with investment grade, the probability of default is low, and the expected credit loss is minimal. Thus, no loss has been

recognized in the consolidated financial statements.

Annual Report 2023 Consolidated Financial Statement 72

Group’s maximum exposure to credit risk:

All figures in USD 000's Note 2023 2022 Trade receivables 10 11,704 16,093 Restricted cash 14 42 57 Cash and cash equivalents 14 2,176 851 Total 13,923 17,001

The ageing of trade receivables at the reporting date was:

All figures in USD 000's Gross Impairment Total Not past due 6,118 - 6,118 Past due 0-30 days 4,587 - 4,587 Past due 31-120 days - - - More than 120 days 5,388 -3,665 1,723 Total trade receivable as of 31 December 2022 16,093 -3,665 12,428 Not past due 5,238 - 5,238 Past due 0-30 days 2,217 - 2,217 Past due 31-120 days 416 - 416 More than 120 days 3,834 -2,062 1,772 Total trade receivable as of 31 December 2023 11,704 -2,062 9,642

The following table details the movement in the allowance for expected credit losses of trade receivables and contract assets:

All figures in USD 000's Note 2023 2022 Opening amount as of 1 January 3,665 3,665 Provision for expected credit losses 2,062 - Write-off -3,665 - Net carrying amount as of 31 December 2,062 3,665

The Group has recognized a loss allowance of 100% against all receivables over 120 days past due because historical experience has

indicated that the receivables are generally not recoverable. Please note that the USD 1.8 million included on the balance sheet with

duration above 120 days relates to an associated company that the company has high visibility of recovering the funds.

As described in Note 3.1 Financial risk factors (B), the company’s concentration of credit risk is due to the narrow customer base within

the oil & gas industry and the fact that the market participants face common risks connected to the industry’s general economic

conditions.

Liquidity Risk

Ultimate responsibility for risk management rests with the board of directors, which has established an appropriate liquidity risk

management framework for the management of the group’s short-, medium- and long-term funding and liquidity requirements. The

group manages liquidity risk by maintaining sufficient cash and cash equivalents, seeking the availability of equity funding and debt

funding, and by continuously monitoring forecast and actual cash flows.

The tables below summarize the maturity profile of the group’s financial liabilities at year end on contractual undiscounted payments. The

tables have been drawn based on the earliest date on which the Group can be required to pay. The tables include both interest and

principal cash flows. Floating interest rates are applied on the interest-bearing borrowings (refer to Note 18 Interest bearing loans and

borrowings) and tax liabilities.

Annual Report 2023 Consolidated Financial Statement 73

On Less Than All figures in USD 000's 1 to 5 Years Total Demand 12 Months Interest-bearing borrowings - 16,287 - 16,287 Trade payables - 9,051 - 9,051 Other payables - 9,240 - 9,240 Provisions - 331 - 331 Total financial liabilities as of 31 December 2022 - 34,909 - 34,909 Interest-bearing borrowings - 4,921 15,207 20,128 Trade payables - 3,821 - 3,821 Other payables - 3,593 - 3,593 Provisions - 2,249 - 2,249 Total financial liabilities as of 31 December 2023 - 14,584 15,207 29,791

Interest-bearing borrowings included amortisation profile of debt and interest for the respective periods.

Currency risk

As described in Note 3.1 Financial risk factors (A)(I), the Group undertakes transactions denominated in foreign currencies; consequently,

exposures to exchange rate fluctuations arise. The Group is mainly exposed to fluctuations with respect to Norwegian kroner, Euro and

Singapore Dollar.

The carrying amounts of the Group's foreign currency denominated monetary assets and monetary liabilities at the reporting date are

presented in the tables below.

All figures in USD 000's Total NOK EUR SGD Others Assets 2,632 2,627 5 - - Liabilities -5,458 -2,379 -2,422 -805 148 Net position as of 31 December 2022 -2,826 248 -2,417 -805 148 Sensitivity 10% -283 25 -242 -81 15 All figures in USD 000's Total NOK EUR SGD Other Assets 1,403 524 74 - 805 Liabilities -3,859 -612 -1,512 -1,297 -439 Net position as of 31 December 2023 -2,457 -88 -1,438 -1,297 366 Sensitivity 10% -246 -9 -144 -130 37

The table also details the Group's sensitivity to a 10% decrease in US dollar against the relevant foreign currencies. A positive number

below indicates an increase in profit. For a 10% weakening of US dollar against the relevant currency, there would be an opposite negative

impact on the profit.

Exchange rates applied during the year:

Average rate Year end USD per : 2023 2022 2023 2022 EUR 1.0810 1.0536 1.1050 1.0666 GBP 1.2433 1.2309 1.2715 1.2026 NOK 0.0947 0.1039 0.0983 0.1014 SGD 0.7443 0.7246 0.7573 0.7459

Annual Report 2023 Consolidated Financial Statement 74

Interest rate risk

As described in Note 3.1 Financial risk factors (A)(II), the Group's exposure to the risk of changes in market interest rates relates primarily to

the Group's borrowing from Sparebank 1 SMN which is a floating interest loan.

The table below presents the carrying values of its floating-rate financial instrument:

All figures in USD 000's Note 2023 2022 Sparebank 1 SMN - Libor + margin 18 13,605 15,687

Cash equivalents and restricted cash of USD 2.2 million as at 31 December 2023 (2022: USD 0.9 million) are interest bearing assets with

variable rates.

An increase/decrease of 100 basis points in interest rates at during 2022 would have increased/decreased equity and profit or loss by USD

0.1 million (2022: USD 0.2 million).

Fair value estimation

Green Minerals AS was distributed to shareholders on 25 January 2023, the remaining 446,801 (approximately 3% of the outstanding shares)

shares is booked at fair value through the profit and loss. The fair value per 31 December 2023 was USD 0.3 million.

32 Long-term investments

The group holds a long-term investment which relates to an associated company (Note 19 Subsidiaries and associates within the Group).

Green Minerals AS is booked at fair value through the profit and loss. The Group holds 3% of the Green Minerals AS’s shares outstanding.

33 Subsequent events

On 18 April 2024, the parent Company announced that in the extraordinary general meeting had been approved the distribution of NOK

0.25 per share to its shareholders, which will be effected through the reduction of share premium.

On 23 February 2024, the parent Company announced that the Board of Directors has proposed a cash dividend of NOK 0.25 per share.

Annual Report 2023 Consolidated Financial Statement 75

34 Performance measurement definitions

Seabird presents the alternative performance measurements (APM) that are regularly reviewed by management and aim to enhance

the understanding of the Company’s performance. APMs are calculated consistently over time and are based on financial data

presented in accordance with IFRS and other operational data as described in below table.

35 Operating environment

The economic environment in 2023 and over the medium term is subject to a high degree of uncertainty, with the continuation of the war

in Ukraine, Israel-Gaza conflict, rising tensions in US-China relations, high inflation and high interest rates threatening a significant slowdown

in the global economy.

Russia – Ukraine conflict

The conflict between Russia and Ukraine continues to be highly unstable. The tension in the region impacted the Russian and global

economies negatively and resulted to ongoing political tensions and international sanctions against certain Russian companies and

individuals. The sanctions imposed restricted the parties from having access to foreign financial markets, including removing access of

several Russian banks to the international SWIFT system.

The EU, UK and US (amongst others) have also imposed sanctions against the Russian central bank, restricting the access of the Russian

state to foreign currency reserves, and introduced further asset freezes against designated individuals/entities and sectoral sanctions.

Alternative performance measurements Measure Description Reason EBITDA -Operating profit before EBITDA is defined as operating profit before This is a measure for evaluation of operating profitability on depreciation and amortization depreciation and impairment of fixed assets a more variable cost basis as it excludes depreciation and and represents earnings before interest, tax impairment. EBITDA shows operating profitability regardless and depreciation, and is a key financial of capital structure and tax situations. parameter for Seabird. EBIT- Operating profit EBIT represents earnings before interest and EBIT shows operating profitability regardless of capital tax. structure and tax situations. Equity ratio Equity divided by assets at the reporting Measure capital contributed by shareholders to fund the date. Company’s assets. Earnings per share Earnings divided by average number of Measures the Company’s earnings on a per-share basis. shares outstanding. Net interest bearing debt Net interest-bearing debt consists of both Net interest-bearing debt is a measure of the Company’s current and non-current interest-bearing net indebtedness that provides an indicator of the overall liabilities less interest bearing financial statement. It measures the Company’s ability to pay all assets, cash and cash equivalents. interest-bearing liabilities within available interest bearing financial assets, cash and cash equivalents, if all debt matured on the day of the calculation. It is therefore a measurement of the risk related to the Company’s capital structure. Other definitions Measure Description Vessel utilization Utilization is a measure of the Company`s ability to keep vessels in operation and on contract with clients, expressed as a percentage and are based on actual days.

Annual Report 2023 Consolidated Financial Statement 76

The conflict between Ukraine and Russia may have an impact on global Oil & Gas demand and pricing which again may affect the

global market for Marine Seismic services. The Group also uses some crew members of Ukraine and Russian Nationality, these crew

members have been working for the Group for a number of years and have not so far indicated any mistrust or other concerns by working

together. This situation is monitored by the Group. Secondary the Group may encounter difficulties to pay salaries to Russian crew

members due sanctions. If such situation arises the Group will assess the possibility and ultimately change crew to other Nationalities.

Currently the Group does not have any ongoing projects or contracts with Russian or Ukrainian interests.

The situation is still evolving and further sanctions and limitations on business activity of companies operating in the region, as well as

consequences on the Russian economy in general, may arise but the full nature and possible effects of these are unknown.

Israel – Gaza conflict

The Israel-Gaza conflict has escalated on 07 October 2023, with the launch of a major attack by Hamas. There might be a significant

exposure and economic uncertainty for entities with operations, subsidiary entities or investment in the war area. Other entities, which do

not have a direct exposure with the war area might also be indirectly affected by the negative global economy and global trade impact

that arise due to the war.

Management believes that it is neither significantly impacted from the Israel-Gaza nor the Russia-Ukraine conflict, as its operations are not

affected by the situation, therefore are reasonably well positioned to withstand volatility and economic uncertainties that may arise from

the geopolitical and global economic environment. Management will continue to monitor the situation closely and assesses appropriate

actions when, and if, needed.

Annual Report 2023  Financial Statement Seabird Exploration PLC  77 
 
 
Separate Financial Accounts: Seabird Exploration Plc 
 
Statement of income .............................................................................................................................................................................................. 78 
Statement of comprehensive income .................................................................................................................................................................. 78 
Statement of financial position .............................................................................................................................................................................. 79 
Statement of cash flow ........................................................................................................................................................................................... 81 
Statement of changes in equity ............................................................................................................................................................................ 82 
Notes to the financial statements .......................................................................................................................................................................... 83 
General information ..................................................................................................................................................................................... 83 
Material accounting policy information ..................................................................................................................................................... 83 
Income tax expense ..................................................................................................................................................................................... 84 
Trade receivables and other current assets ............................................................................................................................................... 84 
Cash and cash equivalents ......................................................................................................................................................................... 84 
Share capital and share options ................................................................................................................................................................. 85 
Trade payables and other payables .......................................................................................................................................................... 86 
Revenues ....................................................................................................................................................................................................... 86 
Other income (expenses), net ..................................................................................................................................................................... 86 
Other financial items, net ............................................................................................................................................................................. 87 
Expenses by nature....................................................................................................................................................................................... 87 
Finance expenses ......................................................................................................................................................................................... 87 
Dividends ....................................................................................................................................................................................................... 87 
Shares in subsidiaries and associates .......................................................................................................................................................... 87 
Commitments and contingencies .............................................................................................................................................................. 89 
Related-Party transactions ........................................................................................................................................................................... 89 
Financial Instruments .................................................................................................................................................................................... 91 
Audit fees ...................................................................................................................................................................................................... 92 
Subsequent events ....................................................................................................................................................................................... 92 
 
   

Annual Report 2023 Financial Statement Seabird Exploration PLC 78

Statement of income

Year ended 31 December

All figures in USD 000's

Note

2023

2022

Revenues

1,003

Cost of sales

-4

-54

Selling, general and administrative expenses

-1,036

-1,397

Other income (expenses), net

-2,051

Impairment on group receivables, net

16,17

-15

-6,808

Write down on group payables

1,518

Impairment on investments in subsidiaries, net of reversals

-5,385

-4,241

Earnings before interest and taxes (EBIT)

-6,973

-11,497

Finance expense

12.16

-2,183

-631

Share of net income (loss) of associates

-5

Fair value adjustments through profit and loss

262

Other financial items, net

10, 14

6,117

791

Profit/(loss) before income tax

-2,782

-11,337

Income tax

Profit/(loss) for the period

-2,782

-11,337

Statement of comprehensive income

Year ended 31 December

All figures in USD 000's

Note

2023

2022

Profit/(loss)

-2,782

-11,337

Other comprehensive income

Total other comprehensive income, net of tax

Total comprehensive income

-2,782

-11,337

Annual Report 2023 Financial Statement Seabird Exploration PLC 79

Statement of financial position

As of 31 December

All figures in USD 000's

Note

2023

2022

ASSETS

Non-current assets

Investments in subsidiaries

49,869

50,328

Financial assets at fair value through profit and loss

262

Investment in associated companies

Total non-current assets

50,196

50,328

Current assets

Trade receivables and other current assets

Due from related parties

7,544

12,760

Cash and cash equivalents

136

Total current assets

7,690

12,805

Assets classified as held for distribution

TOTAL ASSETS

57,886

63,135

EQUITY

Shareholders' equity

Paid in capital

36,944

Revaluation reserve

Share options granted

153

354

Retained earnings

-12,867

-5,475

TOTAL EQUITY

24,242

31,835

LIABILITIES

Non-current liabilities

Total non-current liabilities

Current liabilities

Trade payables and other payables

218

320

Due to related parties

16.17

33,426

30,981

Total current liabilities

33,644

31,301

TOTAL LIABILITIES

33,644

31,301

TOTAL EQUITY AND LIABILITIES

57,886

63,135

Annual Report 2023 Financial Statement Seabird Exploration PLC 80

On 30 April 2024, the board of directors of SeaBird Exploration Plc authorized these Financial Statements for issue.

Ståle Rodahl – Executive Chairman

Hans Christian Anderson – Director

Øivind Dahl-Stamnes – Director

Sverre Strandenes – Director

Odd Sondre Svalastog Helsing – Director

Annual Report 2023 Financial Statement Seabird Exploration PLC 81

Statement of cash flow

Year ended 31 December

All figures in USD 000's

Note

2023

2022

Cash flows from operating activities

Profit/(loss) before income tax

-2,782

-11,337

Adjustments for

Write down on group payables

-1,518

Impairment on investments in subsidiary

5,385

4,241

Impairment on group receivables, net

6,808

Share option plan

-202

-244

Loss /(gain) from sale of shares in subsidiaries

-4,608

Unrealized exchange (gain)/loss

Interest income

-1,434

-931

Interest expense

2,183

631

Fair value adjustments through profit or loss

-262

Share of net income/(loss) of associates and joint ventures

Other items

2,009

697

(Increase)/decrease in trade and other receivables and restricted cash

-2,065

Increase/(decrease) in trade and other payables

-102

-7

Net movement of related parties balances

3,460

-12,558

Net cash used in operating activities

-12,611

Cash flows from investing activities

Payment for investment in subsidiaries

Net cash used in investing activities

Cash flows from financing activities

Net proceeds from issuance of ordinary shares

12,651

Net cash from financing activities

12,651

Net decrease in cash and cash equivalents

Cash and cash equivalents at beginning of the period, unrestricted

Cash and cash equivalents at end of the period, unrestricted

136

Annual Report 2023 Financial Statement Seabird Exploration PLC 82

Statement of changes in equity

All figures in USD 000's

Paid in

capital

Revaluation

reserve

options

granted

Retained

earnings

Total

equity

Equity as of 1 January, 2022

45,492

110

-15,338

30,276

Profit/(Loss)

-11,337

Other comprehensive income

Total comprehensive income

-11,337

Share issue

12,651

Share premium reduction

-16,233

16,233

Share premium reduction – Green Minerals shares

-4,966

4,966

-0

Net share options movement

244

Other equity transactions

Total contributions by and distributions to owners

-8,548

244

21,199

12,895

Equity as of 31 December 2022

36,944

354

-5,475

31,835

Profit/(Loss) for the year

-2,782

Other comprehensive income for the year

Total comprehensive income for the year

-2,782

Share issue

Green Minerals distribution

-4,610

Net share options movement

-202

Other equity transactions

Total contributions by and distributions to owners

-202

-4,610

-4,811

Equity as of 31 December 2023

36,944

153

-12,867

24,241

Annual Report 2023 Financial Statement Seabird Exploration PLC 83

Notes to the financial statements

All figures in USD 1.000, if not stated otherwise.

The separate financial statements are an integral part of the annual financial statements and should be read in conjunction with the

consolidated financial statements.

1 General information

The accompanying consolidated financial statements represent the activities of SeaBird Exploration PLC for the year ended 31 December

2023 (the “period”). The financial statements were authorized for issue by the board of directors on 30 April 2024.

These financial statements are the separate financial statements.

Country of incorporation

The company was incorporated in the British Virgin Islands as a limited liability company in 2000. The company was re-domiciled to Cyprus

on 18 December 2009. Seabird has direct ownership in two vessels and the company is listed on Oslo Børs with ticker SBX. The company’s

registered address is at Panteli Katelari 16, Diagoras House floor 7, 1097, Nicosia, Cyprus. The Group main office is located in Bergen

(Norway) with the office address Sandviksbodene 68, 5035 Bergen. SeaBird Exploration Plc is tax resident in Norway and registered in the

corporate registers both in Norway and Cyprus.

Principal activities

The principal activity of the company, which is unchanged from last year, is the ownership of companies operating within the seismic

industry, including providing financing to subsidiaries.

Basis of preparation

Going concern

As at 31 December 2023 the Company is in a net current liability position of USD 26.0, and incurred losses for the year of USD 2.8 million. As

at 31 December 2023 the Company is in a net assets position of USD 24.2 million. The assessment of going concern of the Company relies

heavily on the ability of the Company and its subsidiaries, the Group, to secure future cash inflows over the going concern assessment

period which extends through to a period of at least one year from the date of approval of the financial statements to meet their liabilities

as they become due. Refer also to Note 2.1 of the Consolidated Financial Statements.

Based on the assessment, Seabird Group will be in the position to repay its short-term obligations as they fall due. For this reason,

management considers it reasonable to use the assumption of going concern in the preparation of the audited financial statements of

the Company.

2 Material accounting policy information

The accounting policies that are material to the Company are set out below. These policies have been consistently applied to all years

presented in these consolidated financial statements unless otherwise stated. SeaBird Exploration Plc has prepared its financial statements

in accordance with International Financial Reporting Standards as adopted by the European Union. The accounting policies are

consistent with those applied in the consolidated financial statements.

Dividend income is recognized when the shareholders' rights to receive payment have been established.

For the discussion of risk factors, financial risk management, and critical accounting estimates and judgments; refer to note 3 and 4 of the

consolidated financial statements.

Shares in subsidiaries (see Note 14 Shares in subsidiaries and associates) are stated at cost less any provision for impairment. The Company

periodically evaluates the recoverability of investments in subsidiaries whenever indicators of impairment are present. Indicators of

impairment include such items as declines in profitability, negative balance between the subsidiary's equity position and the carrying

value of the investment, or external macro-economic factors that may indicate that the carrying amount of an asset is not recoverable.

If facts and circumstances indicate that investment in subsidiaries may be impaired, the estimated future cash flows associated with these

subsidiaries are compared to their carrying amounts to determine if a write-down to fair value is necessary.

The remaining accounting policies applied by the Company are those described in note 2 to the Consolidated Financial Statement.

Annual Report 2023 Financial Statement Seabird Exploration PLC 84

3 Income tax expense

SeaBird Exploration Plc is subject to taxation in Norway which impose corporation tax at the rate of 22%.

All figures in USD 000's

2023

2022

Current period

Adjustment for prior periods

Total current tax

All figures in USD 000's

2023

2022

Continuing operations profit/(loss) before income tax

-2,782

-11,337

Tax arising at the rate of 22%

-612

-2,494

Effect of tax adjustments in arriving at taxable profit and tax losses

612

2,494

Total tax expense/(reversal) attributable to continuing operations

The company performed a detailed review of its tax provisions as a part of its annual closing procedures.

4 Trade receivables and other current assets

Trade receivables

All figures in USD 000's

2023

2022

Trade receivables gross

2,060

Less allowance for expected credit losses

-2,060

Total trade receivables

Allowance for ECL and write offs, net of reversals

All figures in USD 000's

2023

2022

Loss on trade receivables

2,060

Reversed write offs

Total allowance for ECL

2,060

Other current assets

All figures in USD 000's

2023

2022

Prepaid expenses and deposits

Other current assets

Total other current assets

5 Cash and cash equivalents

All figures in USD 000's

2023

2022

Cash and cash equivalents

136

Cash and bank balances

136

Annual Report 2023 Financial Statement Seabird Exploration PLC 85

6 Share capital and share options

Number of authorized shares:

2023

2022

Number of ordinary shares

91,000,000

Nominal value per share

EUR 0.17

Share capital:

All figures in USD 000's

2023

2022

Share capital

16,036

Share premium

20,908

Paid in capital

36,944

Number of shares issued:

Total number of shares issued at 1 January

80,476,265

34,276,665

New shares issued

46,199,600

Reclassification

Total number of shares as per 31 December

80,476,271

80,476,265

In January 2022 the Company issued 14,000,000 new shares at a premium price of NOK 2.25 and increased its share capital by EUR

2,380,000 to EUR 8,207,033.

In May 2022 the Company issued 3,500,000 new shares at a premium price of NOK 2.25 and increased its share capital by EUR 595,000 to

EUR 8,802,033.

In July 2022 the Company issued 26,699,600 new shares at a premium price of NOK 3.00 and increased its share capital by EUR 4,538,932

to EUR 13,340,965.

In November 2022 the Company issued 2,000,000 new shares at a premium price of NOK 3.00 and increased its share capital by EUR

340,000 to EUR 13,680,965.

In December 2022 the Company reduced its share premium by USD 16,233,336 with the purpose to write off losses of the Company. The

share premium was further reduced by USD 4,965,858 in relation with the distribution of the Company’s shares in Green Minerals AS to its

shareholders. The distribution was completed on 25 January 2023.

In March 2023 the Company reallocated 6 shares that has been held outside the Norwegian VPS in relation with the reallocation of the

shareholder register from Cyprus to Norway. The shares were registered with a premium price of nil and increased its share capital by EUR

There are no share classes and no voting restrictions on the shares.

Employee Share Option Plans

The employee share option program consists of 2.3 million warrants and options as of 31 December 2023. The options will vest over period

of three years from the grant date, while the Warrants will vest over a period of two years. One third of the options granted will vest one

year after grant date, one third of the options granted will vest two years after grant date and one third of the options granted will vest

three years after grant date; similar, the warrants will be distributed over two periods. All options and warrants are exercisable at any time

within one year from the corresponding vested dates. The options and the warrants have an average exercise price of NOK 6.23.

Estimated value of the share options granted, reduced for services not rendered, as at 31 December 2023, is presented in equity as share

options granted.

Annual Report 2023 Financial Statement Seabird Exploration PLC 86

Number of options and warrents outstanding

Opening amount as of 1 January, 2023

3,140,000

Granted during the year

Forfeited during the year

Exercised in year

Expired in year

-820,000

Closing amount at 31 December 2023

2,320,000

of which is vested

1,166,667

of which is non-vested

1,153,333

Total options

2,320,000

Share based payments effect on the group’s profit or loss amounts to USD 0.2 million for 2023 and USD -0.2 million for 2022. The total value

of share options granted is calculated using the Black-Scholes model, assuming that all the options will be exercised. The fair value

determined at the grant date is expensed over the vesting period of the options for the options granted less expected number of forfeited

options. The calculation is based on:

- Trailing 252 days logarithmic return volatility of 43%

- Given exercise price for the given option trance the given year, averaging to NOK 6.23

- Time to maturity for the given option tranches

- Assume no dividends

- A risk-free interest rate of 5.6 % per annum

7 Trade payables and other payables

All figures in USD 000's

2023

2022

Trade payables

312

Accrued expenses and other payables

158

Total trade and other payables

218

320

8 Revenues

All figures in USD 000's

2023

2022

Costs recharged to group companies (Management fee)

958

Management fee mark-up to group companies

Total revenues

1,003

The group has a transfer pricing policy in place, which implies that certain sales, general and administrative costs are rechargeable to

SeaBird Exploration Norway.

9 Other income (expenses), net

All figures in USD 000's

2023

2022

Allowance for ECL and write offs, net of reversals

-2,060

Other income (expenses)

Other income (expenses), net

-2,051

Annual Report 2023 Financial Statement Seabird Exploration PLC 87

10 Other financial items, net

All figures in USD 000's

2023

2022

Profit on sale of shares

4,608

Interest income on intercompany borrowings

1,407

927

Net foreign exchange gain/(loss)

-92

Other financial income/(expense)

-44

Total other financial items, net

6,117

791

Profit on sale of shares represents the Company’s profit from distributing the Company’s shareholdings in Green Minerals AS to its

shareholders (USD 4.6 million). The distribution was completed on 25 January 2023.

The other financial income/(expense) includes an amount of USD 0.07m relating to the fair value gain on the acquisition of the associate.

11 Expenses by nature

All figures in USD 000's

2023

2022

Directors’ remuneration

112

142

Net share options movement

-202

244

Legal and professional

476

400

Other expenses SG&A

650

611

Selling, general and administrative expenses

1,036

1,397

Other expenses SG&A include management fee charge of USD 0.5 million to Seabird Exploration Norway AS (2022: USD 0.5 million).

12 Finance expenses

All figures in USD 000's

2023

2022

Interest expense on intercompany borrowings

2,183

631

Total finance expense

2,183

631

Please see Note 16 Related-Party transactions for more information on Interest expense on intercompany borrowings.

13 Dividends

No dividend was distributed for the year ended 31 December 2022 and no dividend is proposed to be distributed for the year ended 31

December 2023. Please see Note 33 in the consolidated statement for more information on shareholder distribution.

14 Shares in subsidiaries and associates

Company

Country of

incorporation

Shareholding and voting

rights

Investments in subsidiaries

(USD000's)

2023

2022

2023

2022

Aquila Explorer Inc.

Panama

100%

Biliria Marine Company Limited**

Cyprus

100%

127

GeoBird Management AS

Norway

100%

672

Green Energy Group AS*

Norway

100%

Harrier Navigation Company Limited

Cyprus

100%

13,635

Annual Report 2023 Financial Statement Seabird Exploration PLC 88

Hawk Navigation Company Limited**

Cyprus

100%

Munin Navigation Company Limited**

Cyprus

100%

Oreo Navigation Company Limited**

Cyprus

100%

Raven Navigation Company Limited**

Cyprus

100%

1,025

Sana Navigation Company Limited

Cyprus

100%

Seabed Navigation Company Limited

Cyprus

100%

3,865

SeaBird Exploration Americas Inc.

USA

100%

SeaBird Exploration Asia Pacific PTE. Ltd.

Singapore

100%

SeaBird Exploration Crewing Limited

Cyprus

100%

2,061

SeaBird Exploration Cyprus Limited

Cyprus

100%

2,657

SeaBird Exploration Finance Limited

Cyprus

100%

1,049

SeaBird Exploration FZ-LLC

UAE

100%

SeaBird Exploration Multi-Client Limited

Cyprus

100%

292

332

SeaBird Exploration Norway AS

Norway

100%

SeaBird Exploration Private Limited***

India

26%

SeaBird Exploration Shipping AS

Norway

100%

SeaBird Exploration Vessels Limited

Cyprus

100%

25,456

Susco AS*

Norway

100%

*) Green Energy Group AS and Susco AS were dissolved on 7 March 2024.

**) Biliria Marine Company Limited, Hawk Navigation Company Limited, Munin Navigation Company Limited, Oreo Navigation Company

Limited and Raven Navigation Company Limited field for voluntary liquidation with the Cyprus court on 29 December 2023. The voluntary

liquidation process is expected to be completed in 2024.

***) Seabird Exploration Private Limited is recognised using the equity accounting principle. For further information, please refer to Note

22.6 interest in joint operation and associated in the consolidated financial statement for information on transactions with non-controlling

interests.

Green Minerals AS was distributed to shareholders on 25 January 2023, the remaining 446,801 (approximately 3% of the outstanding shares)

shares is booked at fair value through the profit and loss. During the prior year, Green Minerals AS was considered a subsidiary with 51%

shareholding and voting rights. It’s carrying amount as at 31 December 2022 was USD 0.002m, and it was recorded under “Assets classified

as held for distribution”.

Movements in investments in subsidiaries:

All figures in USD 000's

2023

2022

Opening book amount as of 1 January

50,328

54,569

Acquisition

4,926

Reclassifies to Assets classified as held for distribution

-2

Impairments

-5,385

-4,241

Closing book amount as of 31 December

49,869

50,328

The acquisition in 2023 relates to debt conversions to equity in two wholly owned Norwegian subsidiaries.

Annual Report 2023 Financial Statement Seabird Exploration PLC 89

Equity accounted investees:

All figures in USD 000's

2023

2022

Opening book amount as of 1 January

Acquisition

Fair value gain on acquisition

Share of profit (loss)

-5

Closing book amount as of 31 December

Financial assets at fair value through profit and loss:

All figures in USD 000's

2023

2022

Opening book amount as of 1 January

Fair value gain on distribution

307

Fair value gain/(loss) in the period

-45

Closing book amount as of 31 December

262

15 Commitments and contingencies

The company's commitments and contingencies as per 31 December 2023 relate to the financial guarantees as described in Note 16

Related-Party transactions (v).

16 Related-Party transactions

i) Purchases of services and expenses recharged to group companies

Expenses amounting to nil were recharged to group companies with 5% mark-up during 2023 (2022: USD 1.0 million recharged to group

companies).

ii) Key management personnel compensation

The compensation of the key management personnel employed by the company's subsidiaries, as well as the remuneration of the

company's directors, are presented in group Consolidated Financial Statement note 30.

iii) Due from related parties

Loans to companies within SeaBird group:

All figures in USD 000's

2023

2022

Opening net book amount as of 1 January

12,760

12,808

Additional loans, net of repayments

-1,682

5,833

Conversion of loans to equity in subsidiaries

-4,926

Interest charged

1,407

927

Impairment on group receivables, net

-15

-6,808

Net book amount as of 31 December

7,544

12,760

Gross book amount

19,287

24,534

Accumulated impairment

-11,743

-11,774

Net book amount as of 31 December

7,544

12,760

The above loans were provided at 6.9 % weighted average interest rate (5.8% in 2022) and have been repayable on demand. The loans

are unsecured.

Annual Report 2023 Financial Statement Seabird Exploration PLC 90

Impairment losses are included in statement of income, "Impairment on group receivables".

iv) Due to related parties

Loans from companies within SeaBird group:

All figures in USD 000's

2023

2022

Opening net book amount as of 1 January

30,981

36,780

Additional loans, net of repayments

1,780

-6,430

Interest charged

2,183

631

Write down on group payables

-1,518

Net book amount as of 31 December

33,426

30,981

The above loans were provided at 6.9 % weighted average interest rate (5.8% in 2022) and are repayable on demand.

v) Financial guarantees

The company is exposed to credit risk in relation to financial guarantees given to Sparebank 1 SMN related to a credit facility provided to

SeaBird Exploration Norway AS. The company is equally liable for the repayment of the facility. However, the management has considered

the substance of the agreement and concluded that the obligation is in substance a financial guarantee. The Company's maximum

exposure in respect of these guarantees is the maximum amount the company could have to pay if the guarantee is called on,

irrespective of the likelihood of being exercised, as shown below:

All figures in USD 000's

2023

2022

Sparebank 1 SMN credit facility

13,605

15,687

The Sparebank 1 SMN credit facility which have been guaranteed by the Company has a maximum limit of USD 15.6 million. The balance

is USD 13.5 million at year end 2023.

vi) Dividends

The company received dividends from subsidiaries of nil in 2023 (nil in 2022).

vii) Shareholding

Management and the board of directors, as of 31 December 2023 held the following shares on own account:

Name

Title

Ordinary

% ownership

Outstanding

options*

Outstanding

warrants*

Ståle Rodahl

Chairman

3,255,775

4.05%

240,000

360,000

Hans Christian Anderson

Board

Member

Odd Sondre Svalastog Helsing

Board

Member

1,208,333

1.50%

Øivind Dahl-Stamnes

Board

Member

70,000

0.09%

Sverre Strandenes

Board

Member

Finn Atle Hamre

CEO

15,125

0.02%

740,000

Sveinung Alvestad

CFO

44,843

0.06%

600,000

*) See Note 6 Share capital and share options for further information of the company's share option program.

Annual Report 2023 Financial Statement Seabird Exploration PLC 91

17 Financial Instruments

Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the company.

The company has the following types of financial assets that are subject to the expected credit loss model:

- Amounts due from related

- Cash and bank balances (including restricted cash)

- Financial guarantees

The table below details the company's maximum exposure to credit risk as at year end:

All figures in USD 000's

Note

2023

2022

Amounts due from related parties, gross

19,287

24,534

Financial guarantees

13,605

15,687

Cash and cash equivalents

136

Total

33,028

40,261

The amount of financial guarantee contracts presented in the table above reflects the company’s maximum exposure with regards to

the guarantees described in Note 16 Related-Party transactions (v) and is not an amount recognized on the statement of financial

position.

The receivables from subsidiaries are assessed for lifetime expected credit losses, determining whether credit risk has increased significantly

since initial recognition. At year-end 2023 the gross receivable balance is USD 19.3 million. When the Company has receivables from

subsidiaries, the loss allowance is estimated based on individual assessment per receivable, taking into consideration the subsidiary's

equity position, financial performance, liquidity position and ability to pay. The company writes off an amount due from related companies

when there is information indicating that the counterparty is unable to pay and/or when there is a management decision to settle intra-

group balances through write-offs.

With regards to cash and cash equivalents, the company measures its expected credit loss by reference to the banks’ external credit

ratings and relevant published default and loss rates, taking into consideration the €100.000 per bank deposit protection guaranteed

under the EU Deposit Guarantee Scheme and the NOK 2 million guarantee provided by the Norwegian Bank’s Guarantee Fund. As the

company's balances at year end were minimal, no loss has been recognized in the financial statements.

Liquidity Risk

Ultimate responsibility for risk management rests with the board of directors, which has established an appropriate liquidity risk

management framework for the management of the company’s short-, medium- and long-term funding and liquidity requirements. The

company manages liquidity risk by continuously monitoring forecast and actual cash flows on a group level and ensuring the availability

of funding through an adequate amount of available debt or equity.

The table below summarizes the maturity profile of the company’s financial liabilities at 31 December 2023 on contractual undiscounted

payments.

The amounts included for financial guarantee contracts are the maximum amount the company could be forced to settle under the

arrangement for the full guaranteed amount if that amount is claimed by the counterparty to the guarantee (see Note 16 Related-Party

transactions) and is not an amount recognized on the statement of financial position.

All figures in USD 000's

Demand

Less Than

12 Months

1 to 5 Years

Total

Due to related parties

30,981

Financial guarantee contracts

15,687

Total financial liabilities as of 31 December 2022

30,981

15,687

46,668

Due to related parties

33,426

Financial guarantee contracts

4,921

15,207

20,128

Annual Report 2023 Financial Statement Seabird Exploration PLC 92

Total financial liabilities as of 31 December 2023

33,426

4,921

15,207

53,554

Financial guarantee contracts include amortisation profile of debt and interest for the respective periods.

Currency risk

The company’s exposure to foreign currency risk was as follows based on notional amounts per 31 December 2023.

All figures in USD 000's

Total

NOK

EUR

GBP

Others

Assets

Liabilities

-523

-296

-268

Net position as of 31 December 2022

-523

-296

-268

Sensitivity 10%

-52

-30

-27

All figures in USD 000's

Total

NOK

EUR

GBP

Others

Assets

7,888

7,823

Liabilities

-209

Net position as of 31 December 2023

7,679

7,613

Sensitivity 10%

768

761

The following significant exchange rates applied during the year:

Average rate

Year end

USD per :

2023

2022

2023

2022

EUR

1.0810

1.0536

1.1050

1.0666

GBP

1.2433

1.2309

1.2715

1.2026

NOK

0.0947

0.1039

0.0983

0.1014

SGD

0.7443

0.7246

0.7573

0.7459

18 Audit fees

All figures in USD 000's

2023

2022

Statutory audit

157

198

19 Subsequent events

Note 33 to the consolidated financial statements describes the significant events that occurred subsequent to the end of the reporting

period that impact the company and its subsidiaries. There were no other significant events concerning the parent company alone.

100

Annual Report 2023

DECLARATION OF THE MEMBERS OF THE BOARD OF DIRECTORS AND

THE OFFICIALS RESPONSIBLE FOR THE PREPARATION OF THE FINANCIAL

STATEMENTS

SeaBird Exploration Plc – 30 April 2024

In accordance with Article 9 sections (3c) and (7) of the Transparency Requirements (Traded Securities in Regulated Markets) Law 2007

(''the Law'') we, the members of the Board of Directors and the Company official responsible for the financial statements of Seabird

Exploration Plc for the year ended 31 December 2023, on the basis of our knowledge, declare that:

(a) The annual consolidated and separate financial statements which are presented on pages 29 to 92:

(i) have been prepared in accordance with the applicable International Financial Reporting Standards as adopted

by the European Union and the provisions of Article 9, section (4) of the law

(ii) provide a true and fair view of the particulars of assets and liabilities, the financial position and profit or loss of the

Seabird Exploration Plc and the entities included in the consolidated financial statements as a whole

(b) The management report provides a fair view of the developments and the performance as well as the financial position of

the Seabird Exploration Plc as a whole, together with a description of the main risks and uncertainties which they face.

Members of the Board of Directors:

Ståle Rodahl – Executive Chairman

Hans Christian Anderson – Director

Øivind Dahl-Stamnes – Director

Sverre Strandenes – Director

Odd Sondre Svalastog Helsing – Director

Responsible for drafting the financial statements:

Sveinung Alvestad, Chief Financial Officer

Seabird Exploration Plc

Cyprus

Panteli Katelari 16

Diagoras House floor 7

1097 Nicosia

Cyprus

Norway

Sandviksbodene 68

5035 Bergen

Norway

https://www.sbexp.com/