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doc1p1i0
SIEM
Offshore
 
Inc. Annual Report 2023
0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1
SIEM
Offshore
 
Inc. Annual Report 2023
Highlights 2023
2
Key Figures
3
Board of Directors’ Report
5
Income Statement
10
Statements of Financial Position – Assets
11
Statements of Financial Position – Equity and Liabilities
12
Statement of Changes in Equity
13
Statement of Cash Flows
15
Notes to the Accounts
16
Corporate Governance
63
Environmental, Social and Governance (ESG) Report
67
Auditor’s Report
68
Vessels in the fleet
73
Local presence in key markets
75
This is Siem Offshore Inc.
77
Responsibility Statement
79
Board of Directors
80
Financial Calendar
81
Alternative Performance Measurement (APM) and other
definitions
82
 
 
 
 
 
 
Highlights 2023
SIEM
Offshore
 
Inc. Annual Report 2023
2
Revenue USD 1,000
 
336,026
Operating margin USD 1,000
 
164,486
Employees per 31.12.2023
1,236
Vessels in operation per 31.12.2023
26
Highlights for the First Quarter
●
Awarded a contract extension of 7 months firm for the OSCV
“Siem Barracuda” on the Hywind Tampen offshore wind farm
project (for client Equinor).
●
Awarded a contract for the AHTS "Siem Topaz" in Taiwan,
commencing in March 2023 for a firm period into Q4 2023,
for the offshore wind industry.
 
●
Received USD 12 million as down-payment on a seller’s
credit and other receivables related to the 2019 sale of “Siem
Marlin”. Payment entailed reversal of previous impairments
having a positive effect on net profit of USD 9.5 million.
Highlights for the Second Quarter
●
The Annual General Meeting of Siem Offshore Inc. was held
on 10 May 2023. All proposed resolutions were unanimously
approved, and all Directors were re-elected.
 
●
Awarded a contract for the AHTS "Siem Emerald" for a firm
period of 6 months + options of up to 6 months.
 
●
Received a 12-month contract extension for “Siem Atlas”
and “Siem Giant” for continued operations in Brazil.
 
Highlights for the Third Quarter
●
Secured a medium-term contract for two of our AHTS
vessels, “Siem Aquamarine” and “Siem Amethyst” for a
major operator in Australia with commencement in late 2023.
●
Awarded a contract extension for the AHTS “Siem Topaz”
with a local client in Taiwan, ensuring continued operations
into Q4 2024. The vessel will continue to be employed within
the offshore wind industry.
●
Awarded a contract extension for the MPSV “Siem Dorado”,
securing utilization for a period reaching towards the end of
Q2 2024.
Highlights for the Fourth Quarter
●
Entered into a term contract for the AHTS “Siem Sapphire”
with an oil major in Australia. The firm duration of the
contract is approximately 1 year plus options up to 6 months.
●
Signed a LOI with Helix Energy Solutions Group for a
possible long-term extension of charter contracts for “Siem
Helix 1” and “Siem Helix 2”.
●
Recorded a gain of USD 67.0 million in reversal of
impairments for four vessels.
●
Recorded a gain of USD 18.5 million related to revaluation of
deferred tax asset.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Key figures
3
SIEM
Offshore
 
Inc. Annual Report 2023
(Amounts in USD 1,000)
CONSOLIDATED
INCOME STATEMENT
Ref
2023
2022
Operating revenue
336,026
274,306
Operating expenses
-171,540
-170,530
Operating margin
(1)
164,486
103,776
Operating margin, %
(2)
49%
38%
Depreciation and amortization
-68,023
-64,305
Reversal of impairment of vessels
66,966
-
Gain/(loss) on sale of assets
-178
-95
Operating profit
(3)
163,251
39,376
Net financial items
-9,695
-12,340
Result from associated companies
550
446
Profit /(loss) before taxes
154,106
27,482
Tax benefit/(expense)
19,027
250
Net profit/(loss)
173,133
27,732
Attributable to non-controlling interest
-1,381
-3,165
Net profit/(loss) attributable to shareholders
174,515
30,897
STATEMENT OF FINANCIAL
 
POSITION
31 Dec 2023
31 Dec 2022
Non-current assets
919,814
867,874
Current assets
167,155
151,568
Total assets
1,086,969
1,019,442
Total equity
529,176
359,377
Non-current liabilities
282,395
544,757
Current liabilities
275,398
115,307
Total equity and liabilities
1,086,969
1,019,442
Definitions
(1) Operating Margin is the net of Operating revenue and operating expenses. For 2023 operating revenues USD 336,026 less
operating expenses at USD 171,540 equals operating margin at USD 164,486. The Company considers the operating
 
margin to be a
key number when analyzing the fleets operating performance and the margin that can be allocated to the finance
 
of capital
expenditures, debt-service and other cash disbursements.
 
(2) Operating Margin, %. The relative operating margin is calculated to be the percentage of operating
 
margin to operating
revenue. For 2023 the operating margin at USD 164,486 equals 49% of the operating revenue at USD 336,026.
 
The Company
considers the operating margin, % to be important when analyzing the vessels' relative performance.
(3) The Operating Profit is the profit before financial items and tax. The operating profit for 2023 is
 
calculated by adding operating
revenues at USD 336,026, less operating expenses at USD 171,540,
 
less depreciation and amortization at USD 68,023,
 
plus reversal
of impairments at USD 66,966 less loss on sale of assets at USD 178 which equal operating profit
 
at USD 163,251.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
doc1p5i0
 
 
 
 
SIEM
Offshore
 
Inc. Annual Report 2023
4
STATEMENT OF CASH FLOWS
2023
2022
Net cash flow from operations
137,624
84,172
Net change in cash
1,804
5,000
KEY FIGURES
2023
2022
Weighted average no. of outstanding shares (1,000)
238,852
238,852
Weighted average no. of diluted outstanding shares (1,000)
238,852
238,852
Earnings per share (USD)
0.73
0.13
Diluted earnings per share (USD)
0.73
0.13
Share price per year end (USD)
2.71
1.34
Share price per year end (NOK)
27.60
13.24
31/12/2023
31/12/2022
I
 
I I
 
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I
 
I I
 
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I I
 
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I I
 
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I I
 
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26 TOTAL
I
 
I I
 
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I I
 
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I I
 
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I I
 
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I I
 
I
 
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I I
 
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I I
 
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28 TOTAL
31/12/2021
I
 
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I I
 
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I I
 
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I I
 
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I I
 
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I I
 
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I
 
I I
 
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28 TOTAL
31/12/2020
I
 
I I
 
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I I
 
I
 
I
 
I I
 
I
 
I
 
I I
 
I
 
I
 
I I
 
I
 
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I I
 
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I
 
I I
 
I
 
I
 
I
 
I
 
31 TOTAL
 
31/12/2019
I
 
I I
 
I
 
I
 
I I
 
I
 
I
 
I I
 
I
 
I
 
I I
 
I
 
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I I
 
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I I
 
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I I
 
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I I
 
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35 TOTAL
31/12/2023
I
 
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I I
 
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I I
 
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I I
 
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I I
 
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I
 
26 TOTAL
31/12/2022
I
 
I I
 
I
 
I
 
I I
 
I
 
I
I I
 
I
 
I
 
I I
 
I
 
I
 
I I
 
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I
 
I I
 
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I
 
I I
 
I
 
28 TOTAL
31/12/2021
I
 
I I
 
I
 
I
 
I I
 
I
 
I
I I
 
I
 
I
 
I I
 
I
 
I
 
I I
 
I
 
I
 
I I
 
I
 
I
 
I I
 
I
 
28 TOTAL
31/12/2020
I
 
I I
 
I
 
I
 
I I
 
I
 
I
 
I I
I
 
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I I
 
I
 
I
 
I I
 
I
 
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I I
 
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I
 
I I
 
I
 
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I
 
I
 
31 TOTAL
31/12/2019
I
 
I I
 
I
 
I
 
I I
 
I
 
I
 
I I
 
I
I
 
I I
 
I
 
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I I
 
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I I
 
I
 
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I I
 
I
 
I
 
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I
 
I
 
I I
 
I
 
35 TOTAL
 
Vessels
 
Vessels in operation
Ownership
 
0-79%
 
100%
 
 
 
 
5
SIEM
Offshore
 
Inc. Annual Report 2023
Board of Directors' Report
The Board of Directors of Siem Offshore Inc. (the “Board”)
 
presents its report
for the fiscal year ended 31 December 2023, together with the
 
audited
consolidated financial statements for the Company and
 
the Parent Company.
The financial statements and related notes were authorized
 
for issue by the
Board on 19 April 2024 and will be presented to the shareholders
 
for approval
at the Annual General Meeting to be held on Tuesday 7 May 2024.
THE COMPANY
All references to “Siem Offshore” and the “Company” shall
mean Siem Offshore Inc. and its subsidiaries and associates
unless the context indicates otherwise. All references to
“Parent” shall mean Siem Offshore Inc. as the Parent Company
only.
Siem Offshore is registered in the Cayman Islands
and is listed on the Oslo Stock Exchange (OSE Symbol:
SIOFF). The Company’s headquarter is located in Kristiansand,
Norway and subsidiary offices are located in Brazil, Australia,
Canada, Cayman Islands and United States. The Company is
tax domiciled in Norway.
The Company’s primary activity is the ownership and
operation of offshore support vessels (“OSVs”) for the offshore
energy service industry and the offshore renewable energy
industry.
 
The Company operated a fleet of 26 vessels at year-
end, including partly-owned vessels and 2 vessels in lay-up.
During 2023, the total fleet of OSVs conducted operations in
the North Sea, Brazil, Australia, Canada, Northern Pacific
Ocean, Southeast Asia, South America and West Africa.
FINANCIAL RESULTS, POSITION AND RISKS
IFRS
 
The financial statements for the Company and the Parent are
prepared in accordance with the International Financial
Reporting Standards (“IFRS®”) as adopted by the European
Union.
Going-Concern
 
The financial statements have been prepared under the
assumption that the Company and the Parent are going
concerns. The Company’s financial position, financing
arrangements and forecasted cashflows are supporting a
going concern status. On 31 December 2023 USD 213 million
was classified as current debt. This includes USD 170 million of
outstanding debt under certain facilities that mature in
December 2024. The Company is experiencing interest from
various funding sources, including the bank market, and the
December 2024 maturities are expected to be refinanced
during the year.
The Market
The OSV market was generally good in 2023 for all segments.
As usual, the year was characterized by a relatively calm first
quarter with increased activity towards the summer and a
slowing market in the last quarter. The North Sea spot market
for AHTS vessels was generally in line with expectations, but
there was a lack of campaigns that took vessels out of the
market and created strong utilization and the correspondingly
high day rates that the segment needs. The AHTS segment
had a higher activity globally than in previous years and
especially in Australia and Asia the market experienced a
positive development. The North Sea spot market for PSVs
was better than in previous years, especially for large
sophisticated PSVs that were well utilized. The global PSV
market experienced increased day rates in almost all regions.
The Offshore Construction and Subsea segment was tight
throughout the year. With increased activity within Oil and Gas
in combination with Offshore wind, the market was sold out for
most of the year. Offshore wind projects experienced a need
for larger vessels and contributed well to increased day rates.
Income Statement
In 2023, the Company recorded operating revenue of USD
336.0 million and a net profit attributable to shareholders of
USD 174.5 million, or USD 0.73 per share, compared to
operating revenue of USD 274.3 million and a net profit
attributable to shareholders of USD 30.9 million, or USD 0.13
per share, in 2022. The increase in revenues was primarily due
to a more positive outlook in the markets following a steady
increase in oil price and improving estimates for worldwide
demand for oil and gas, and for renewable energy. The
SIEM
Offshore
 
Inc. Annual Report 2023
6
increased net profit was due to improved demand for vessels,
reversal of impairments related to vessels and receivables,
and recalculation of deferred tax asset. The offshore
renewable energy industry launched several new projects
which generated vessel employment. The supply – demand
balance for offshore vessels has further improved.
The Company’s operating margin for 2023 was USD 164.5
million compared to USD 103.8 million in 2022. Net operating
margin as a percentage of operating revenue was 49% in 2023
compared to 38% in 2022. The increase in operating margin
was due to improved vessel utilization and charter rates.
The Company’s operating profit for 2023 was USD
 
163.3
million compared to USD
 
39.4 million in 2022 and includes
depreciation and amortization of USD
 
68.0 million (2022: USD
 
64.3 million). During 2023, the Company conducted periodic
reviews of vessel valuations, and concluded to recognize
reversal of vessel impairments at USD
 
67.0 million.
 
The Company’s net financial items were USD
 
-9.7 million
(2022: USD
 
-12.3 million) and included financial expenses of
USD
 
-29.7 million (2022: USD -24.4 million) and a revaluation
gain/(loss) of non-USD currency items of USD
 
9.0 million
(2022: USD
 
7.7 million) mainly due to variances in NOK and
BRL compared to USD during the period. Non-USD currency
items are held to match short- and long-term liabilities,
including off-balance sheet liabilities, in a similar currency. In
2023 the Company recorded USD 9.5 million as reversal of
impairment related to a seller’s credit arrangement for “Siem
Marlin”.
The Parent Company is primarily a holding company
owning shares in subsidiaries.
 
The Board proposes that the Parent’s net profit of USD
194.2 million for 2023 be allocated to retained earnings and
that no dividend shall be paid for 2023.
 
Financial Position and Cash Flows
Total equity was USD 529 million at year-end 2023 (2022: USD
359 million), and the book equity ratio was 49% (2022: 35%).
Shareholders’ equity was USD 534 million (2022: USD 363
million), equivalent to USD 2.24 per share (2022: USD 1.52 per
share).
 
The Company recorded USD 33.5 million as capital
expenditures on fixed assets during 2023, related to project-
specific investments in vessels (including battery power
systems), capitalized dry-dockings and periodic maintenance.
The net interest-bearing debt at year-end was USD 365
million (2022: USD 474 million). The Company deferred
interest payments of USD 3.4 million that, during the year, were
added to the principal loan balance of secured and unsecured
credit facilities related to Payment-in-kind (PIK) agreements
(2022: USD 0.9 million). The minority interest in the AHTS fleet
increased its subordinated shareholder’s loan by USD 3.6
million (2022: USD 1.9 million), inclusive of accrued interest.
The weighted average cost of debt for the Company was
approximately 6.7%
 
p.a. at year-end (2022: 5.8% p.a.).
 
Cash flows
The cash position at year-end was USD 97.3 million (2022:
USD
 
94.9 million).
 
The Company paid debt instalments of the equivalent of
USD 112 million in 2023 (2022: USD 55 million). Debt
instalments included repayments from cash sweeps of USD 46
million (2022: USD 23 million). Following the refinancing in Q2
2021, fixed repayments of debt have been reduced
substantially and cash sweep mechanisms are in place that will
balance repayments of debt to the Company’s cash position
and cash generating. The Company will be less exposed if
cash flows are negatively impacted from a volatile market. If
the Company’s cash flows are exceeding agreed values,
related to cash position and related measures, excess
installments will become payable to the European lending
banks following a set of agreed cash sweep mechanisms.
The Company’s cash-flows are primarily denominated in
USD, NOK, EUR, BRL, GBP, CAD and AUD. During 2023, the
USD strengthened by 3.2% to the NOK, weakened by 7.8% to
the BRL, was neutral to the AUD, weakened by 5,7% to the
GBP, weakened by 2.2% to the CAD and weakened by 3,6%
to EUR. The average recorded exchange rates were NOK/USD
0.0949, EUR/USD 1.0816, BRL/USD 0.1999, GBP/USD 1.243,
AUD/USD 0.6634 and CAD/USD 0.7404 (2022: NOK/USD
0.1043, EUR/USD 1.0563, BRL/USD 0.1933, GBP/USD 1.2385,
AUD/USD 0.6938 and CAD/USD 0.7665).
Financial Risks
Interest risk
The Company is exposed to changes in interest rates, as
approximately 62% of the interest-bearing debt is based on
floating interest rates and primarily denominated in USD. The
average 3-month USD Term SOFR was 5.17% p.a. during 2023
(2022:2.4% p.a.) and the average 3-month NIBOR was 4.16%
p.a. during 2023 (2022: 2.1% p.a.). The Company held no
interest rate swap agreements, nor any cross-currency
interest rate swaps at year-end.
Currency risk
The Company is exposed to currency risk as revenue and
costs are denominated in various currencies. The Company
held no forward exchange contracts at year end.
Inflation Risk
The Company is exposed to inflation risk as inflation rates are
expected to increase. The revenues may not be inflated at
levels that could compensate for inflated operating cost. In
addition to general inflation-rates, the operating expenses
 
 
Board of Directors’ Report
7
SIEM
Offshore
 
Inc. Annual Report 2023
related to spare parts, service-personnel and logistics within
the shipping industry are further exposed to inflation.
 
Liquidity risk
The Company is financed by a combination of debt and equity.
If the Company fails to repay or refinance its credit facilities,
additional equity financing may be required. There can be no
assurance that the Company will be able to repay its debts or
extend the debt repayment schedule through re-financing of
credit facilities. There is no assurance that the Company will
not experience cash flow shortfalls exceeding the Company’s
available funding sources or to remain in compliance with
minimum cash requirements or other covenants. Please see
more information regarding this in the Going Concern
paragraph above.
 
Refinancing risk
The Company holds secured debt, of which a significant share
will mature on 31 December 2024. The debt balance that will
become due for refinancing within the end of 2024 is
contingent on debt repayments from a cash sweep
mechanism that is in force with the financial lenders. Further,
there is no assurance that the Company will be able to raise
new equity or arrange new credit facilities on favorable terms
and in amounts necessary to conduct its ongoing and future
operations should this be required.
 
Climate risk
The Company is exposed to both transition risk and physical
risks associated with climate change. The Company has a
structured approach to monitoring the development of the
offshore oil and gas market and opportunities created by the
transition to offshore renewable energy. The Company’s
strategy is based on market scenario analysis and positioning
of the Company for the energy transition by establishing new
segments to explore business opportunities within offshore
renewable energy.
 
The physical risks associated with climate
change may directly affect our offshore operations through
increased occurrence of extreme weather conditions.
Available days for offshore operations could be limited as
clients could shorten their weather windows. The Company
mitigates this risk through good crew training and awareness
programs, good vessel maintenance programs and close
cooperation with its clients.
 
War risk
The war in Ukraine could impact the market balance of
offshore support vessels in the Company’s key areas of
operation. There is associated risk of price escalations to
vessel spare parts, logistics and other services. The Company
observes indications of shortages of experienced crew and
escalation of crew costs. Sanctions that have been imposed
on nations and organizations could affect the Company’s
competition directly and indirectly, and its ability to receive
and send payments for its services.
 
OPERATIONS
Fleet, Performance and Employment
The fleet in operation at the end of 2023 totaled 26 vessels
(2022: 28 vessels) , including partly owned vessels and 2
vessels in lay-up (2022: 3 vessels). The Company performed
ship-management services for 3 vessels owned by related
parties.
 
The Company had 6 PSVs in operation at end of the year
(2022: 6). The PSV fleet earned operating revenues of USD
48.4 million and had 95% utilization (2022: USD 36.2 million
and 90%). The operating margin before administrative
expenses was USD 17.9 million (2022: USD 7.4 million) and the
operating margin as a percentage of revenue was 37% (2022:
20%).
 
The Company’s Subsea segment had 4 OSCVs, 2 WIVs
and 1 Scientific Core Drilling Vessel in operation at end of the
year (2022:
 
7 in total). The Subsea fleet earned operating
revenues of USD
 
187.0 million and had 98% utilization (2022:
USD 158.9 million and 95%). The operating margin before
administrative expenses was USD 123.9 million (2022: USD
91.6 million) and the operating margin as a percentage of
revenue was 66% (2022: 58%).
 
The Company had 9 AHTS vessels in operation at end of
the year (2022: 9). The AHTS fleet earned operating revenues
of USD 85.0 million and had 72% utilization (2022: USD 61.6
million and 79% utilization). The operating margin before
administrative expenses was USD 34.4 million (2022: USD 17.1
million) and the operating margin as a percentage of revenue
was 40% (2022: 28%).
 
Siem Offshore do Brasil S.A. is the Company’s wholly
owned Brazilian subsidiary that owns and operates a fleet of 4
Fast Crew and Oil Spil Recovery vessels in Brazil (2022: 5).
This fleet earned operating revenues of USD 14.3 million and
had 98% utilization (2022: USD 16.1 million and 98%). The
operating margin before administrative expenses was USD 4.3
million (2022: USD7.5 million) and the operating margin as a
percentage of revenue was 30% (2022: 47%).
 
The total firm contract backlog for all OSV vessels on 31
December 2023 was USD 320 million (2022: USD 442 million).
The total vessel contract backlog is allocated with USD 208
million in 2024, USD 71 million in 2025 and USD 41 million in
2026 and onwards. The contract backlog, as a percentage of
the annual fleet capacity, is 52% for 2024, 18% for 2025 and
5% for 2026 (2022: 59% for 2023, 33% for 2024 and 18% for
2025), also see Note 18.
 
 
 
 
SIEM
Offshore
 
Inc. Annual Report 2023
8
HSEQ
Health, Safety, Environment & Quality - Committed to safe,
ethical, and sustainable operations
The Company’s continuous focus on safe operations,
cooperation with stakeholders and environmental initiatives
has resulted in a major improvement within safety and quality.
Close cooperation with major clients on a global basis is of
great importance. Further promoting the collective team- and
safety culture throughout the Company together with our
partners. The increased frequency of long-term contracts in all
hemispheres has been of the utmost importance for the safe-
and quality track record of our operations.
 
The Company’s operations set the Environmental,
Social and Governance issues and priorities high, ensuring
efficient and sustainable deliverables, in line with market and
client expectations.
Environment
In 2023, protection of the environment has been a high priority
area. The ESG-strategy (Environmental, Social and
Governance) outlines the Company’s internal goals for
emission intensity reductions and energy management. We
have performed specific studies and research to further
develop emission reduction technologies including use of
alternative fuel types.
 
Siem Offshore Environmental Policy confirms the
Board of Directors and Management’s commitment to
minimize the Company’s impact on the environment, in
relation to biodiversity, resource usage, and water and waste
management.
 
At the senior management level, there is a
constant and shared responsibility to ensure that all staff are
familiar with this policy, and that there are systems and
procedures in place to integrate environmental considerations
in our decision-making and operations.
Ethics, Compliance, and Integrity
Siem Offshore is committed to carrying out its business in an
ethical manner and in strict compliance with applicable laws
wherever it operates, latest example being the Transparency
Act that ensures focus on human rights in the supply chain.
The compliance and governance work continued to be a focus
area in 2023, where we have earned trust of our clients,
business partners, suppliers, and other stakeholders by acting
consistently and reliably in accordance with these principles.
 
Management is accountable for compliance, which is
the responsibility of everyone who works for the Company.
One of the key roles of our compliance and ethics function is
to ensure Management understands, accepts, and fulfils its
accountability.
SHAREHOLDERS AND CORPORATE
GOVERNANCE
Shareholder Information
The Company’s authorized share capital is USD 300,000,000
divided into 300,000,000 ordinary shares of a nominal value of
USD 1.00 each. The issued share capital on 19 April 2024,
based on the 238,852,052 Company shares issued and
outstanding, is USD 238,852,052. The Company’s shares are
listed on the Oslo Stock Exchange with the ticker symbol
SIOFF. The Company’s largest shareholder is Siem
Sustainable Energy S.a r.l., whose ultimate owner is Siem
Industries S.A., with a 34.9% interest on 19 April 2024. During
2023, the closing share price reached a high of NOK 29.35, a
low of NOK 12.84 and closed at NOK 27.60 at year-end.
Corporate Governance
The Company has implemented guidelines for good corporate
governance based on the recommendations and guidelines
given by the Oslo Stock Exchange. The purpose of these
guidelines is to clarify roles of the Shareholders, the General
Meeting, the Board of Directors and the day-to-day
Management beyond what follows from the legislation. A
detailed summary of our corporate governance principles is
included in a separate section of the Annual Report.
THE WORKING ENVIRONMENT AND THE
EMPLOYEES
The Company provides a workplace with equal opportunities
for all employees. We treat current and prospective
employees fairly in relation to salaries, promotions, and
recruitment. The Company offers its employees a sound
working environment, giving opportunities for professional
development equally and free of any discrimination to all
employees.
 
The sick leave rate for onshore and offshore
employees was 0.6% and 2.2% respectively on a global basis.
 
The knowledge of the crew is vital for safe and
secure operations of any vessel. Such knowledge includes
good seamanship and understanding of the demanding
assignments to be executed.
OUTLOOK
The expected increase in activity globally is well under way
and almost all regions expect increased activity for next year.
Brazil, West Africa and the North Sea will probably be leaders,
but smaller markets such as Australia and Guyana will
 
 
 
 
Board of Directors’ Report
9
SIEM
Offshore
 
Inc. Annual Report 2023
contribute to increased utilization of OSV vessels. Although
some of the new development projects are delayed, we have
good expectations for all segments in the coming years. The
PSV segment is expected to see increased utilization in line
with the increased drilling activity globally, and we see large,
sophisticated vessels becoming more in demand, especially in
areas with a lack of infrastructure. The AHTS market is and will
be volatile, but we believe that we will experience more peaks
that last longer in the future as more projects enter the market,
this will also affect the long-term contract levels. The large
number of FPSO installations will be a good contributor to this
segment, as these projects require several vessels and early
commitment which creates limitation in the market. Floating
wind may also contribute positively to the segment, but we
believe that several of the planned projects will slip on time as
there are still many bottlenecks to get these projects
commercialized. For the Offshore Construction and Subsea
vessels the increase of long-term contracts entering the
market continues. The Oil and Gas segment competes with the
Renewables segment to secure tonnage for the future, which
is a signal that charterers are strategically positioning
themselves to reduce the risk of not having control over
capable assets to carry out their already booked projects in
the years ahead.
 
The high activity offshore, driven by stable energy
prices and wind installations, indicates a growing demand for
our sophisticated fleet in the coming years. The company has
relatively good availability of vessels going forward and is in a
good position to target long-term opportunities in the future,
which is advantageous in a rising market. Further, we strongly
believe that consolidation should continue to be a required
objective for the stakeholders in our industry. With increased
costs at all levels, economies of scale will be important for the
industry. As we move forward, the oil and gas industry will be
met with stricter demands to reduce emission of greenhouse
gases. To serve the interest of all stakeholders, our ambition
shall be to lead the consolidation effort as well as the shift into
new technology.
 
The Board believes that the Company is well-
positioned to compete with its peers based on its advanced
fleet, quality backlog, strong operating record, positive
reputation, and its proven ability to provide employment on a
global scale.
SUBSEQUENT TRANSACTION
The Company agreed to sell 9 of its vessels (3 AHTS, 4 PSV
and 2 Subsea vessels (OSCV)) to the major shareholder Siem
Sustainable Energy S.a r.l and related companies (“Siem”) in
exchange for 35.7% of the Company’s shares. Siem will
assume USD 117.5 million of existing vessel debt as part of the
transaction. The transaction is expected to generate a gain.
For transaction technical purposes, the value of USD 482.5
million was used in the transaction agreement. Further details
can be found in the transaction agreement which will be made
available together with the notice for the 2024 Annual General
Meeting. Siem will thereafter cease to be a shareholder in the
Company and Kristian Siem does not offer himself for election
at the annual shareholders meeting scheduled to be held on
the 7th of May 2024. The vessels will be transferred to Siem as
soon as practical and before 1 July 2024. These transactions
are pending approval of relevant shareholders, lenders and
certain other parties.
APPROVAL OF ANNUAL REPORT
The financial statements and related notes were authorized for
issue by the Board on 19 April 2024 and will be presented to
the shareholders for approval at the Annual General Meeting
to be held on Wednesday 7 May 2024.
 
19 April 2024
Kristian Siem
 
Chairman
(Sign.)
Barry W. Ridings
Director
(Sign.)
 
Celina Midelfart
 
Director
(Sign.)
Christen Sveaas
Director
(Sign.)
 
Bernt Omdal
Chief Executive Officer
(Sign.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income statement
 
 
SIEM
Offshore
 
Inc. Annual Report 2023
10
PARENT COMPANY
CONSOLIDATED
2023
2022
(Amounts in USD 1,000)
Note
2023
2022
961
1,118
Operating revenue
2,4,14
336,026
274,306
-3,908
-4,404
Operating expenses
2,4,8,14,16,17,1
8
-171,540
-170,530
-2,947
-3,286
Operating margin
4
164,486
103,776
-
-
Depreciation and amortization
4,5,18
-68,023
-64,305
-
-
Reversal of impairment of vessels
3,4,5
66,966
-
-
-
Gain/(loss) on sales of assets
21
-178
-95
-2,947
-3,286
Operating profit
163,251
39,376
Financial income and expenses
58,858
43,039
Financial income
19
11,053
4,300
146,865
-5,559
Financial expenses
19
-29,711
-24,375
-221
1,414
Net currency gain/(loss)
19
8,963
7,736
205,502
38,894
Net financial items
-9,695
-12,340
-
-
Result from associated companies
7
550
446
202,555
35,608
Profit/(loss) before taxes
154,106
27,482
-8,357
-2,142
Tax benefit/(expense)
11
19,027
250
194,198
33,466
Net profit/(loss)
173,133
27,732
-
-
Attributable to non-controlling interest
6
-1,381
-3,165
194,198
33,466
Attributable to shareholders of the Company
174,515
30,897
Weighted average number of outstanding shares (1,000)
20
238,852
238,852
Weighted average number of shares diluted (1,000)
20
238,852
238,852
Statement of comprehensive income
2023
2022
(Amounts in USD 1,000)
2023
2022
194,198
33,466
Net profit/(loss)
173,133
27,732
Other Comprehensive income
Items that will not be reclassified to profit or loss
-
-
Pension remeasurement gain (loss)
-739
-446
Items that may be subsequently reclassified to profit or loss
-
-
Cash flow hedges
5,297
11,753
-
-
Currency translation differences
-7,893
-19,959
194,198
33,466
Total comprehensive income for the year
169,799
19,080
-
-
Attributable to non-controlling interest
-1,381
-3,165
194,198
33,466
Attributable to shareholders of the Company
171,180
22,245
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statements of Financial Position
—Assets
11
SIEM
Offshore
 
Inc. Annual Report 2023
PARENT COMPANY
CONSOLIDATED
12/31/2023
12/31/2022
(Amounts in USD 1,000)
Note
12/31/2023
12/31/2022
Non-Current assets
-
-
Deferred tax asset
11
27,586
8,187
-
-
Vessels and equipment
4,5,18
845,148
804,918
-
-
Capitalized project costs
4,5
1,533
1,811
375,763
249,520
Investment in subsidiaries
6
-
-
-
-
Investment in associated companies
7
452
2,682
-
-
CIRR Loan deposit
12,24
13,759
20,638
88,288
10,399
Long-term receivables
9,14,24
31,337
29,636
464,051
259,920
Total non-current assets
919,814
867,874
Current assets
-
-
Trade receivable
2,24
41,626
33,416
28,418
980
Other short-term receivable
9,14,24
22,917
17,868
-
-
Inventories
25
5,288
5,335
42,303
31,394
Cash
2,10,24
97,325
94,949
70,721
32,375
Total current assets
167,155
151,568
534,772
292,295
Total assets
1,086,969
1,019,442
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statements of Financial Position
—Equity and Liabilities
SIEM
Offshore
 
Inc. Annual Report 2023
12
PARENT COMPANY
CONSOLIDATED
12/31/2023
12/31/2022
(Amounts in USD 1,000)
Note
12/31/2023
12/31/2022
Equity
238,852
238,852
Share capital
22
238,852
238,852
246,073
51,875
Other reserves
295,408
124,229
484,925
290,727
Shareholders' equity
534,261
363,081
-
-
Non-controlling interest
-5,085
-3,703
484,925
290,727
Total equity
529,176
359,377
Liabilities
Non-current liabilities
-
-
Borrowings
2,12,14,24
249,861
509,994
-
-
CIRR Loan
12,24
13,759
20,638
3,114
309
Tax liabilities
11
92
249
-
-
Pension liabilities
8
1,348
989
-
-
Other non-current liabilities
18
17,335
12,887
3,114
309
Total non-current liabilities
282,395
544,757
Current liabilities
6
63
Accounts payable
2,24
16,996
11,203
-
-
Borrowings
2,12,14,24
212,525
58,978
-
-
Taxes payable
11
2,228
635
-
-
Other current provision
13
19,010
18,092
46,727
1,196
Other current liabilities
13,14,18,24
24,639
26,399
46,733
1,259
Total current liabilities
275,398
115,307
49,847
1,568
Total liabilities
557,793
660,065
534,772
292,295
Total equity and liabilities
1,086,969
1,019,442
444,213
551,906
Guarantees
15
686
686
 
19 April 2024
Kristian Siem
 
Chairman
(Sign.)
Barry W. Ridings
Director
(Sign.)
 
Celina Midelfart
 
Director
(Sign.)
Christen Sveaas
Director
(Sign.)
 
Bernt Omdal
Chief Executive Officer
(Sign.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of changes in equity
 
 
13
SIEM
Offshore
 
Inc. Annual Report 2023
CONSOLIDATED
(Amounts in USD 1,000)
Total no.
 
of shares
Share
 
capital
Share
premium
reserves
Other
reserves
Retained
earnings
Share-
holders'
equity
Non-
controlling
interest
Total
equity
Equity as of 31 December 2021
238,852,052
238,852
582,875
-30,725
-450,166
340,836
-538
340,298
Net profit/(loss)
-
-
-
-
30,897
30,897
-3,165
27,732
Cash flow hedge
-
-
-
11,753
-
11,753
-
11,753
Currency translation differences
-
-
-
-19,959
-
-19,959
-
-19,959
Pension remeasurement
-
-
-
-
-446
-446
-
-446
Reallocation of retained loss
-
-
-419,715
-
419,715
-
-
-
Equity as of 31 December 2022
238,852,052
238,852
163,160
-38,931
-
363,080
-3,703
359,377
Net profit/(loss)
-
-
-
-
174,515
174,515
-1,381
173,133
Cash flow hedge
-
-
-
5,297
-
5,297
-
5,297
Currency translation differences
-
-
-
-7,893
-
-7,893
-
-7,893
Pension remeasurement
-
-
-
-
-739
-739
-
-739
Equity as of 31 December 2023
238,852,052
238,852
163,160
-41,527
173,775
534,261
-5,085
529,176
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of changes in equity
 
 
SIEM
Offshore
 
Inc. Annual Report 2023
14
PARENT COMPANY
(Amounts in USD 1,000)
Total no.
 
of shares
Share
 
capital
Share
premium
reserves
Other
reserves
Retained
earnings
Shareholders'
equity
Equity as of 31 December 2021
238,852,052
238,852
582,875
-22,302
-542,164
257,261
Net profit/(loss)
-
-
-
-
33,466
33,466
Reallocation of retained loss
-
-
-419,715
-
419,715
-
Equity as of 31 December 2022
238,852,052
238,852
163,159
-22,302
-88,983
290,727
Net profit/(loss)
-
-
-
-
194,198
194,198
Equity as of 31 December 2023
238,852,052
238,852
163,159
-22,302
105,215
484,925
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of cash flows
 
15
SIEM
Offshore
 
Inc. Annual Report 2023
PARENT COMPANY
CONSOLIDATED
2023
2022
(Amounts in USD 1,000)
Note
2023
2022
CASH FLOW FROM OPERATIONS
194,198
33,466
Net profit/(loss)
173,133
27,732
18,185
5,017
Interest expenses
34,209
23,370
-22,275
-8,136
Interest income
-11,059
-4,245
-8,268
-4,515
Intercompany interest income
-
-
8,357
2,142
Tax expense
11
-19,027
-250
-
-
Currency hedge
1,329
6,232
-
-14,387
Result from associated companies
7
-550
-446
-
-
Gain/(loss) on sale of assets
21
178
95
-
-
Depreciation and amortization
5
68,023
64,305
-
-
Reversal of impairment on vessels and long-term receivables
5,19
-72,737
-
-165,097
-15,474
Impairment of shares in subsidiaries
19
-
-
228
-
Unrealized currency gain/(loss)
-12,546
-13,823
12,496
709
Changes in short-term receivables and payables
-5,920
-2,648
 
-
 
-
Other changes
2,324
-531
37,825
-1,179
Cash flow from operations
157,356
99,792
-18,185
-5,017
Interest paid
-28,761
-17,432
22,275
8,136
Interest received
8,450
2,599
-12
-14
Taxes paid/(received)
579
-786
41,903
1,926
Net cash flow from operations
137,624
84,172
CASH FLOW FROM INVESTMENT ACTIVITIES
-
-
Investment in fixed assets
4,5
-33,492
-24,923
-
-
Proceeds from sale of fixed assets
21
16
97
-11,126
-6,409
Loan to subsidiaries
-
-
-19,642
-
Investment in subsidiaries
-
-
-
-
Dividend from associated company
7
2,578
-
-
-
Change in other non-current receivables
5,960
763
-30,769
-6,409
Net cash flow from investment activities
 
-24,937
-24,062
CASH FLOW FROM FINANCING ACTIVITIES
-
-
Proceeds from non-controlling interests in consolidated
subsidiary
3,109
1,791
-
-
Repayment of lease liability
18
-1,847
-1,812
-
-
Changes in other non-current liabilities
-
-126
-
-
Repayment of long-term borrowing
12
-112,145
-54,963
-
-
Net cash flow from financing activities
-110,883
-55,109
11,134
-4,483
Net change in cash
1,804
5,000
31,394
33,362
Cash at bank as of 1 January
94,949
91,839
-225
2,515
Effect of currency exchange rate differences
571
-1,890
42,303
31,394
Cash at bank as of 31 December
97,325
94,949
 
 
 
SIEM
Offshore
 
Inc. Annual Report 2023
16
 
Note 1
Accounting Principles
 
1.1 General
Siem Offshore owns and operates a fleet of offshore support
vessels, including Platform Supply Vessels, Subsea vessels,
AHTS vessels and Fast Crew & Oil Spill Recovery Vessels.
Siem Offshore Inc. commenced operations 1 July 2005 and is
an exempted company under the laws of the Cayman Islands
and is listed on the Oslo Stock Exchange. The Company’s
headquarter is located in Kristiansand, Norway and the
Company is tax domiciled in Norway. All references to “Siem
Offshore Inc.”, “Consolidated” and “Company” shall mean
Siem Offshore Inc. and its subsidiaries and associates unless
the context indicates otherwise. All references to “Parent” or
“Parent Company” shall mean Siem Offshore Inc. as a parent
company only.
The principal accounting policies applied in
preparation of these consolidated and parent company
financial statements are set out below. These policies have
been consistently applied for all the years presented, unless
otherwise stated.
 
The financial statements were authorized by the
Board of Directors on 19 April 2024.
1.2 Basis of preparation
The consolidated and parent company financial
statements are prepared in accordance with International
Financial Reporting Standards (IFRS®) as endorsed by the
European Union. The financial statements also include any
additional applicable disclosures as required by Norwegian
law and Oslo Stock Exchange regulations. The financial
statements have been prepared under the historical cost
convention, as modified by specific financial assets and
financial liabilities (including derivative instruments) measured
at fair value and assets held for sale measured at fair value less
costs to sell. The financial statements have been prepared
under the assumption of going concern.
 
All amounts are in USD thousands, unless otherwise stated.
Management is required to make estimates and
assumptions that affect the reported amounts of assets and
liabilities. In addition, the preparation of financial statements in
conformity with IFRS requires the use of certain critical
accounting estimates. It also requires management to exercise
its judgment in the process of applying the Company’s
accounting policies. 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 3 Critical Accounting
Estimates and Judgments.
(a) New and amended standards that have been adopted
 
The Company has applied the following standards and
amendments for the first time for their annual reporting period
commencing 1 January 2023:
•
Definition of Accounting Estimates – amendments to
IAS 8
•
Deferred Tax related to Assets and Liabilities arising
from a Single Transaction – amendments to IAS 12
•
Disclosure of Accounting Policies – Amendments to
IAS 1 and IFRS Practice Statement 2.
The amendments listed above did not have any impact on the
amounts recognized in prior periods and are not expected to
significantly affect the current or future periods.
(b) New standards and interpretations not yet adopted
 
Certain new accounting standards, amendments to
accounting standards and interpretations have been
published that are not mandatory for 31 December 2023
reporting periods and have not been early adopted by the
group. These standards, amendments or interpretations are
not expected to have a material impact on the entity in the
current or future reporting periods and on foreseeable future
transactions.
•
Non-current Liabilities with Covenants –
Amendments to IAS 1
•
Lease Liability in a Sale and Leaseback –
Amendments to IFRS 16
•
Supplier finance arrangements – Amendments to IAS
7 and IFRS 7
 
•
Sale or contribution of assets between an investor
and its associate or joint venture – Amendments to
IFRS 10 and IAS 28
 
 
Notes to the accounts
17
SIEM
Offshore
 
Inc. Annual Report 2023
1.3 Segment reporting
Operating segments are reported in a manner consistent with
the internal reporting provided to the chief operating decision-
maker. The chief operating decision-maker, who is
responsible for allocating resources and assessing
performance of the operating segments, has been identified as
the executive management team consisting of the CEO, CFO,
COO, CCO and CHRO.
As from 1 January 2023, the reporting segments have
been changed, in order to reflect how the management is
following up the segments. The Scientific Core-drilling
segment has been included in the segment OSCV and WIV,
and the segment was renamed and is now referred to as
Subsea. The Canadian-owned AHTS vessel is now included
under the segment AHTS. The Brazilian fleet segment was
renamed and is now referred to as Fast Crew & Oil Spill
Recovery Vessels. The comparable figures of previous periods
have been updated. The reportable segments are Platform
Supply Vessels (PSVs), Subsea Vessels, Anchor-Handling Tug
Supply (AHTS) Vessels, Fast Crew & Oil Spill Recovery
Vessels and Other.
1.4 Foreign currency translation
(a) Functional and presentation currency
Items included in the financial statements of each of the
Company’s entities are measured using the currency of the
primary economic environment in which the entity operates
(the “functional currency”). The consolidated financial
statements are presented in USD, which is the Company’s
presentation currency.
 
1.5 Non-current tangible assets and maintenance
costs
Land and Buildings and Vessels are stated at their historical
cost less accumulated depreciation and net of any impairment
losses. All non-current tangible assets (excluding Land and
Vessels under construction) are depreciated on a straightline
basis over the estimated remaining useful economic life of the
asset. The vessel residual value is the estimated future sales
price for steel less the estimated costs associated with
scrapping a vessel. The residual value and expected useful life
for all non-current tangible assets is reviewed annually and,
where they differ significantly from previous estimates, the
rate of depreciation charges is changed accordingly. The
vessels presently owned by the Company have an estimated
 
 
 
 
 
economic life of 30 years. Some components of the vessels
have a shorter economic life than 30 years. Such components
are depreciated over their individual useful lives. Each part of a
vessel that is significant to the total cost of the vessel is
separately identified and depreciated over that component’s
useful life. Components with similar useful lives are included in
one component. The Company has identified nine significant
components relating to its different types of vessels. See note
5 for additional information.
In accordance with IAS 16 and the cost model, drydocking
costs is a separate component of the vessel’s cost at purchase
with a different pattern of benefits and are therefore initially
recognized as a separate depreciable asset. Subsequently,
the cost of major renovations and periodic maintenance costs
are capitalized as a dry-docking asset and depreciated over
the useful life of the parts replaced. The useful life of the dry-
docking costs will be the period until the next docking,
normally five years. Day- to-day maintenance costs are
immediately expensed during the reporting period in which
they are incurred.
 
Capitalized project cost - Certain vessel contracts require
an investment prior to commencing the contract to fulfil
requirements set by the charterer. These investments are
capitalized and amortized over the term of the specific charter
contract.
Gains and losses on the sale of assets and disposals are
determined by comparing the sales or disposal proceeds with
the net carrying amount and are included in operating profit.
1.6 Newbuild contracts and borrowing costs
Instalments on newbuild contracts are classified as non-
current tangible assets. Direct costs related to the on-site
supervision and other pre-delivery construction costs are
capitalized per vessel.
General and specific borrowing costs directly related to
the acquisition, construction or production of qualifying
vessels are added to the cost of those vessels, until such time
as the vessels are substantially ready for their intended use or
sale. All other borrowing costs are recognized in the profit or
loss in the period in which they are incurred.
 
1.7 Commercial Interest Reference Rate (CIRR)
loan
The Company has obtained one Commercial Interest
Reference Rate (CIRR) loan from the Norwegian Export Credit
Agency. The duration of the loan is 10 years and the cash
 
 
SIEM
Offshore
 
Inc. Annual Report 2023
18
 
proceeds from the loan have been deposited in a fixed interest
deposit account with a Norwegian bank at the same interest
rate as the loan (being off-market). The agreed periods of the
deposit are identical with the periods of the loan. The loan and
the deposit are presented gross as there are different
counterparties.
1.8 Derivatives and hedging activities
The Company enters into derivative instruments for economic
hedging purposes and not as speculative investments.
Derivative instruments are primarily foreign currency contracts
and interest rate swaps, to hedge foreign currency exposures,
for example related to operating expenses and vessel
purchase commitments, and interest rate exposures primarily
related to long-term borrowings. Where derivatives do not
meet hedge accounting criteria, they are accounted for at fair
value through profit or loss.
For cash flow hedges that qualify for hedge accounting,
the effective portion of changes in the fair value of the hedging
instrument that is designated and qualifies as a cash flow
hedge is recognized in equity. These are cash flow hedges
relating to highly probable forecast transactions. The effective
portion of changes in the fair value of the hedging instrument is
recognized in Other Comprehensive Income. Amounts
accumulated in equity are reclassified in the period when the
hedged item affects profit or loss. When the forecast
transaction is no longer expected to occur, the cumulative
gain or loss and deferred costs of hedging that were reported
in equity are immediately reclassified to profit or loss.
 
Derivatives are presented as current assets or liabilities to
the extent they are expected to be settled within 12 months
after the end of the reporting period.
 
Derivatives are initially recognized at fair value on the date
a derivative contract is entered into and are subsequently
remeasured at their fair value.
 
1.9 Revenue recognition
The Company’s activity is to employ different types of offshore
support vessels, including PSVs, Subsea vessels, AHTS
vessels and Fast Crew & Oil Spill Recovery Vessels. Revenue
comprises the fair value of the consideration received or
receivable for the sale of goods and services in the ordinary
course of the Company’s activities. Revenue is shown net of
value-added tax, withholding tax, returns, rebates and
discounts and after elimination of sales within the Company.
Revenue is recognized as follows:
Charter rate contracts
Time charter contracts contain a lease element and a
performance obligation for the provision of time charter
services. The lease of the vessel, representing the use of the
vessel without any associated performance obligations or
warranties, is accounted for in accordance with the provisions
of IFRS 16 Leases. Typically, lease revenues are recognized on
a straight line basis over the lease term. Revenues for time
charter services are recognized over time as the service is
rendered in accordance with IFRS 15.
 
1.10 Government grants
Grants related to net wages arrangement in Norway are
recognized as a reduction of wage cost.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the accounts
19
SIEM
Offshore
 
Inc. Annual Report 2023
 
Note
 
2
Financial Risk Management
2.1 Financial risk factors
The Company is exposed to a variety of financial risks through
its ordinary operations and debt financing. Such risks include
foreign exchange risk, interest rate risk, credit risk and liquidity
risk. To manage these risks, management reviews and
assesses its primary financial and market risks. Once risks are
identified, appropriate action is taken to mitigate the identified
risk. The Company’s risk management is exercised in line with
guidelines approved by the Board.
 
2.2 Foreign exchange risks
USD is the reporting currency for the Company. Functional
currency for the Parent is USD, and for the vessel-operating
subsidiaries USD, NOK, BRL, AUD and CAD are the functional
currencies. Remaining subsidiaries use USD, NOK or EUR as
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
functional currency. The Company operates internationally
and is exposed to foreign exchange risks arising from various
currency exposures primary with respect to NOK, GBP, EUR,
BRL, CAD and AUD. Foreign exchange risks can be divided
into transaction risk from paying and receiving foreign
currency, and translation risk due to recognizing assets and
liabilities in USD. The Company had in 2023 mainly USD, NOK,
EUR, GBP, BRL, CAD and AUD revenues and expenses,
compared to mainly USD, NOK, EUR, GBP, BRL, CAD and AUD
during 2022. The NOK and the BRL currencies have been
volatile against the USD in 2023 and in 2022.
The following sensitivity table demonstrates the
impact on the Company’s profit and equity before tax from
potential changes to the exchange rates, all other variables
held constant.
CONSOLIDATED
Foreign exchange risk rate 10%
(Amounts in USD 1,000)
+10% movements
-10% movements
31 December 2023
Carrying amount
Profit/(loss)
Equity
Profit/(loss)
Equity
Financial assets
Cash and cash equivalent
97,325
5,137
5,137
-5,137
-5,137
Accounts receivable
41,626
1,527
1,527
-1,527
-1,527
Impact on financial assets before tax
6,664
6,664
-6,664
-6,664
Financial liabilities
Accounts payable
16,996
-1,304
-1,304
1,304
1,304
Borrowings
462,387
-2,395
-2,395
2,395
2,395
Impact on financial liabilities before tax
-3,700
-3,700
3,700
3,700
Income statement
Operating revenue
336,026
14,995
14,995
-14,995
-14,995
Operating expenses
171,540
-12,449
-12,449
12,449
12,449
Impact on operating result before tax
2,546
2,546
-2,546
-2,546
Total increase/decrease before tax
5,511
5,511
-5,511
-5,511
Allocation per currency
NOK
-3,209
-3,209
3,209
3,209
EUR
2,186
2,186
-2,186
-2,186
GBP
3,833
3,833
-3,833
-3,833
BRL
3,974
3,974
-3,974
-3,974
CAD
775
775
-775
-775
AUD
-2,049
-2,049
2,049
2,049
Total increase/decrease before tax
5,511
5,511
-5,511
-5,511
Financial Risk Management Note 2
 
SIEM
Offshore
 
Inc. Annual Report 2023
20
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CONSOLIDATED
Foreign exchange risk rate 10%
(Amounts in USD 1,000)
+10% movements
-10% movements
31 December 2022
Carrying amount
Profit/(loss)
Equity
Profit/(loss)
Equity
Financial assets
Cash and cash equivalent
94,949
4,445
4,445
-4,445
-4,445
Accounts receivable
33,416
1,653
1,653
-1,653
-1,653
Impact on financial assets before tax
6,098
6,098
-6,098
-6,098
Financial liabilities
Accounts payable
11,203
-801
-801
801
801
Borrowings
568,972
-2,527
-2,527
2,527
2,527
Impact on financial liabilities before tax
-3,328
-3,328
3,328
3,328
Income statement
Operating revenue
274,306
15,208
15,208
-15,208
-15,208
Operating expenses
170,530
-10,935
-10,935
10,935
10,935
Impact on operating result before tax
4,273
4,273
-4,273
-4,273
Total increase/decrease before tax
7,042
7,042
-7,042
-7,042
Allocation per currency
NOK
-3,111
-3,111
3,111
3,111
EUR
2,096
2,096
-2,096
-2,096
GBP
2,192
2,192
-2,192
-2,192
BRL
3,544
3,544
-3,544
-3,544
CAD
886
886
-886
-886
AUD
1,436
1,436
-1,436
-1,436
Total increase/decrease before tax
7,042
7,042
-7,042
-7,042
Notes to the accounts
21
SIEM
Offshore
 
Inc. Annual Report 2023
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PARENT COMPANY
Foreign exchange risk rate 10%
(Amounts in USD 1,000)
+10% movements
-10% movements
31 December 2023
Carrying amount
Profit/(loss)
Equity
Profit/(loss)
Equity
Financial assets
Cash and cash equivalent
42,303
4
4
-4
-4
Impact on financial assets before tax
4
4
-4
-4
Financial liabilities
Accounts payable
6
-
-
-
-
Impact on financial liabilities before tax
-
-
-
-
Income statement
Operating revenue
961
-
-
-
-
Operating expenses
-3,908
-350
-350
350
350
Impact on operating result before tax
-350
-350
350
350
Total increase/decrease before tax
-346
-346
346
346
Allocation per currency
NOK
-346
-346
346
346
Total increase/decrease before tax
-346
-346
346
346
PARENT COMPANY
Foreign exchange risk rate 10%
(Amounts in USD 1,000)
+10% movements
-10% movements
31 December 2022
Carrying amount
Profit/(loss)
Equity
Profit/(loss)
Equity
Financial assets
Cash and cash equivalent
31,394
233
233
-233
-233
Impact on financial assets before tax
233
233
-233
-233
Financial liabilities
Accounts payable
63
-5
-5
5
5
Impact on financial liabilities before tax
-5
-5
5
5
Income statement
Operating revenue
1,118
-
-
-
-
Operating expenses
-4,404
387
387
-387
-387
Impact on operating result before tax
387
387
-387
-387
Total increase/decrease before tax
615
615
-615
-615
Allocation per currency
NOK
615
615
-615
-615
Total increase/decrease before tax
615
615
-615
-615
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Risk Management Note 2
 
SIEM
Offshore
 
Inc. Annual Report 2023
22
 
2.3 Credit risks
Concentration risks
The Company's credit risk is primarily attributable to its
trade and other short-term receivables.
 
The exposure to credit risk for trade and other short-term
receivables is measured on an ongoing basis and credit
evaluations are performed for customers identified to be risky.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
On 31 December 2023, the provision for certain accounts
receivables which may not be paid in full was USD 0.9 million
for the Company (2022: USD 4.5 million) and nil for the Parent
(2022: nil).
 
 
The table below presents the concentration risk for 2023
and 2022:
 
Receivables on 31 December 2023
PARENT COMPANY
CONSOLIDATED
(Amounts in USD 1,000)
USD
% of total
USD
% of total
1 to 5 largest
-
-
20,414
48%
6 to 10 largest
-
-
9,408
22%
Others
-
-
12,718
30%
Provision for bad debt
-
-914
Total accounts receivable
-
-
41,626
100%
Receivables on 31 December 2022
PARENT COMPANY
CONSOLIDATED
(Amounts in USD 1,000)
USD
% of total
USD
% of total
1 to 5 largest
-
-
18,003
47%
6 to 10 largest
-
-
6,608
17%
Others
-
-
13,345
35%
Provision for bad debt
-
-
-4,540
-
Total accounts receivable
-
-
33,416
100%
Changes in the provision for bad debt can be summarized as follow:
PARENT COMPANY
CONSOLIDATED
(Amounts in USD 1,000)
2023
2022
2023
2022
Provision bad debt
Opening balance 1 January
-
-
4,540
4,151
Reversal provision previous year
-
-
-4,000
-148
Provision current year
-
-
432
500
Currency translation differences
-
-
-57
37
Closing balance 31 December
-
-
914
4,540
Notes to the accounts
23
SIEM
Offshore
 
Inc. Annual Report 2023
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade and receivables
The table below presents an aging analysis of the outstanding receivables at year-end 2023 and 2022. Overdue receivables are
monitored continually by Management. The Management considers the net outstanding amounts to be recoverable.
PARENT COMPANY
CONSOLIDATED
(Amounts in USD 1,000)
USD
% of total
USD
% of total
Aging on 31 December 2023
Not due
-
-
36,618
88%
Due up to 1 month
-
-
4,294
10%
Due 1-4 months
-
-
1,629
4%
Due more than 4 months
-
-
-914
-2%
Total accounts receivable
-
-
41,626
100%
(Amounts in USD 1,000)
Aging on 31 December 2022
Not due
-
-
27,643
83%
Due up to 1 month
-
-
5,409
16%
Due 1-4 months
-
-
257
1%
Due more than 4 months
-
-
106
-
Total accounts receivable
-
-
33,416
100%
The carrying amounts of the Company’s and Parent’s accounts receivable are denominated in the following
 
currencies:
PARENT COMPANY
CONSOLIDATED
(Amounts in USD 1,000)
2023
2022
2023
2022
Currency
USD
-
-
26,354
16,890
NOK
-
-
2,565
2,895
EUR
-
-
617
6,759
GBP
-
-
7,246
1,162
CAD
-
-
288
899
AUD
-
-
-
3,492
BRL
-
-
4,557
1,320
Total accounts receivable
-
-
41,626
33,416
The maximum exposure to credit risk at the reporting date is the carrying value of each class of accounts receivable
 
mentioned
above.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Risk Management Note 2
 
SIEM
Offshore
 
Inc. Annual Report 2023
24
 
2.4 Cash flow, interest risk and fair value
The Company is financed by debt and equity. If the
Company fails to repay or refinance its loan facilities,
additional equity financing may be required. There can be no
assurance that the Company will be able to repay its debts or
extend re-payment schedules through re-financing of its loan
agreements or avoid net cash flow shortfalls exceeding the
Company’s available funding sources or comply with minimum
cash requirements. Further, there can be no assurance that the
Company will be able to raise new equity, or arrange new
borrowing facilities, on favorable terms and at amounts
necessary to conduct its ongoing and future operations,
should this be required.
 
In the event of insolvency, liquidation or similar event
relating to a subsidiary of the Company, all creditors of such
subsidiary would be entitled to payment in full out of the assets
of such subsidiary before the Company, as a shareholder,
would be entitled to any payments. Defaults by, or the
insolvency of, a subsidiary of the Company could result in the
obligation of the Company to make payments under parent
company guarantees issued in favor of such subsidiary.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Company is moreover exposed to changes in interest
rates, which may affect the Company’s financial results.
 
These risks are mainly related to the Company’s long-term
borrowings with floating interest rates.
 
Further details of the Company’s borrowings are set out in
Note 12.
 
The Company has no significant interest-bearing assets
other than cash and cash-equivalents and therefore the
Company’s income and operating cash flows are substantially
independent of changes in market interest rates. Cash and
cash-equivalents are invested for short maturity periods,
generally from one day to three months, which mitigates some
of the potential interest rate risk.
 
Following the restructuring the Company and the Parent
Company is exposed to currency and interest risk. The
Company holds fixed interest for 39% of its interest-bearing
debt.
The following sensitivity tables demonstrate the impact on
the Company’s profit before tax and equity from a potential
shift in interest rates, all other variables held constant.
 
CONSOLIDATED
Interest rate risk (IR)
(Amounts in USD 1,000)
-1% movements
+1% movements
31 December 2023
Carrying amount
Profit/(loss)
Equity
Profit/(loss)
Equity
Financial assets
Cash and cash equivalents
97,325
-973
-973
973
973
Impact on financial assets before tax
-973
-973
973
973
Financial liabilities
Borrowings fixed rate
179,868
-
-
-
-
Borrowings floating rate
 
282,518
2,825
2,825
-2,825
-2,825
Impact on financial liabilities before tax
2,825
2,825
-2,825
-2,825
Total increase/decrease before tax
1,852
1,852
-1,852
-1,852
CONSOLIDATED
Interest rate risk (IR)
(Amounts in USD 1,000)
-1% movements
+1% movements
31 December 2022
Carrying amount
Profit/(loss)
Equity
Profit/(loss)
Equity
Financial assets
Cash and cash equivalents
94,949
-949
-949
949
949
Impact on financial assets before tax
-949
-949
949
949
Financial liabilities
Borrowings fixed rate
219,054
-
-
-
-
Borrowings floating rate
 
349,918
3,499
3,499
-3,499
-3,499
Impact on financial liabilities before tax
3,499
3,499
-3,499
-3,499
Total increase/decrease before tax
2,550
2,550
-2,550
-2,550
For more details, see Note 12.
Notes to the accounts
25
SIEM
Offshore
 
Inc. Annual Report 2023
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PARENT COMPANY
Interest rate risk (IR)
(Amounts in USD 1,000)
-1% movements
+1% movements
31 December 2023
Carrying amount
Profit/(loss)
Equity
Profit/(loss)
Equity
Financial assets
Cash and cash equivalents
42,303
-423
-423
423
423
Impact on financial assets before tax
-423
-423
423
423
Impact on financial liabilities before tax
-
-
-
-
Total increase/decrease before tax
-423
-423
423
423
PARENT COMPANY
Interest rate risk (IR)
(Amounts in USD 1,000)
-1% movements
+1% movements
31 December 2022
Carrying amount
Profit/(loss)
Equity
Profit/(loss)
Equity
Financial assets
Cash and cash equivalents
31,394
-314
-314
314
314
Impact on financial assets before tax
-314
-314
314
314
Impact on financial liabilities before tax
-
-
-
-
Total increase/decrease before tax
-314
-314
314
314
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Risk Management Note 2
 
SIEM
Offshore
 
Inc. Annual Report 2023
26
 
The Company’s financial assets are classified into the
categories: assets at fair value through the profit and loss,
loans and receivables, and available for sale. Financial
liabilities are classified as liabilities at fair value through the
profit and loss, and other financial liabilities. For further
information about comparison by category, see Note 24.
The Company's following financial instruments are not
evaluated at fair value: accounts receivable, cash and cash
equivalents, other short-term receivables, accounts payable
and long-term liabilities with floating interest.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Because of the short term to maturity, the value of cash and
cash equivalents entered into the Statement of Financial
Position is almost the same as the fair value of these.
Accordingly, the values of accounts receivable and accounts
payable are almost the same as their fair values since they are
entered on “normal” conditions.
 
The fair value of the Company’s non-current liabilities
subjected to fixed interest rates is calculated by comparing
the Company’s terms and market terms for liabilities with the
same terms to maturity and credit risk.
 
The following tables display the book value and the fair
value of financial assets and obligations.
CONSOLIDATED
(Amounts in USD 1,000)
12/31/2023
12/31/2022
Financial assets
Book value
Fair value
Book value
Fair value
CIRR loan deposit
13,759
13,687
20,638
20,130
Long-term receivables
31,337
31,337
29,636
29,636
Accounts receivable
41,626
41,626
33,416
33,416
Other short-term receivables
22,917
22,917
17,868
17,868
Cash and cash equivalents
97,325
97,325
94,949
94,949
Total
 
206,963
206,891
196,508
195,999
Financial liabilities
Borrowings
462,387
458,965
568,972
555,933
CIRR loan
13,759
13,687
20,638
20,130
Other non-current liabilities
17,335
17,335
12,887
12,887
Accounts payable
16,996
16,996
11,203
11,203
Other current liabilities
24,639
24,639
26,399
26,399
Total
 
535,115
531,621
640,100
626,552
PARENT COMPANY
(Amounts in USD 1,000)
12/31/2023
12/31/2022
Financial assets
Book value
Fair value
Book value
Fair value
Long-term receivables
88,288
88,288
10,399
10,399
Other short-term receivables
28,418
28,418
980
980
Cash and cash equivalents
42,303
42,303
31,394
31,394
Total
 
159,009
159,009
42,774
42,774
Financial liabilities
Accounts payable
6
6
63
63
Other current liabilities
46,727
46,727
1,196
1,196
Total
 
46,733
46,733
1,259
1,259
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the accounts
27
SIEM
Offshore
 
Inc. Annual Report 2023
2.5 Liquidity risk
The Company monitors its cash flow from operations closely
and optimizes the working capital level of the individual
companies and the Company as a whole. The Company funds
are used for investment opportunities in the business,
scheduled repayments and repayments of debt and to general
working capital purposes.
 
The Company seeks to fix the majority of its fleet on long-
term contracts. Vessels not fixed on long-term contracts are
typically exposed to the volatility in the short- to medium term-
market.
The Company will from time to time require additional
capital to take advantage of business opportunities.
Historically the Company has managed to obtain necessary
financing in a timely manner at acceptable terms when
needed.
 
The Company's secured debt was restructured in
2021, with amended repayment terms and cash sweep
mechanisms.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The tables below summarize the maturity profile of the
Company’s financial liabilities including interest. Siem
Offshore has agreed restructured terms with the equitized
lenders. The restructured terms shall remain in force till 31
December 2024, corresponding to extended maturity of the
restructured facilities. Financial covenants include minimum
available cash at USD 25 million and a minimum book equity
ratio of Siem Offshore at 10%. Other terms relate to vessel
buy-out options, no-dividend clause, restrictions on
investments in assets, restrictions to acquisitions of shares and
business undertakings, negative pledge, restrictions to selling
or otherwise disposal of assets, no equitization of the Brazilian
facilities, financial indebtedness, change of control clause,
PIK-interest arrangements and three cash sweep mechanisms;
one facility cash sweep, one SAP (Siem ATHS Pool AS) cash
sweep and one company cash sweep.
CONSOLIDATED
(Amounts in USD 1,000)
Less than 3
months
3 to 12
months
1 to 2
years
2 to 5
years
Thereafter
Total
31 December 2023
Interest-bearing loans and borrowings
23,260
189,265
40,281
117,503
92,078
462,386
Trade and other payables
20,559
36,932
-
-
12,544
70,035
Total
43,819
226,197
40,281
117,503
104,622
532,422
31 December 2022
Interest-bearing loans and borrowings
13,859
45,119
274,175
127,259
108,560
568,972
Trade and other payables
37,603
18,727
698
-
13,875
70,903
Total
51,461
63,846
274,873
127,259
122,436
639,876
PARENT COMPANY
(Amounts in USD 1,000)
Less than 3
months
3 to 12
months
1 to 2
years
2 to 5
years
Thereafter
Total
31 December 2023
Trade and intercompany payables
6
46,727
-
-
-
46,733
Total
6
46,727
-
-
-
46,733
31 December 2022
Trade and other payables
63
1,196
-
-
-
1,259
Total
63
1,196
-
-
-
1,259
.
 
 
 
Financial Risk Management Note 2
 
SIEM
Offshore
 
Inc. Annual Report 2023
28
Note 3
Critical Accounting Estimates and Judgements
 
IFRS requires management to make estimates and judgments
that affect the reported amounts of assets and liabilities, as
well as revenues and expenses in the financial statements. The
final reported outcomes may deviate from the original
estimates.
Certain amounts included in, or that have an effect
on, the accounts and the associated notes require estimation,
which in turn entails that the Company must make
assessments related to values and circumstances that are not
known at the point in time when the accounts are being
prepared.
A significant accounting estimate is an estimate that
is important to provide a complete picture of the Company’s
financial position, which at the same time is the result of
difficult, subjective and complex assessments performed by
the management. Such estimates are often uncertain by
nature. Management evaluates such estimates continuously
based on historical data and experience, consultation with
external experts, trend analysis and other factors that are
relevant for the individual estimate, including expectations of
future events that are believed to be reasonable under the
circumstances.
Estimates and assumptions that have a significant
risk of causing a material adjustment to the carrying amounts
of assets and liabilities within the next financial year, as well as
judgments made by management, in the process of applying
the Company’s accounting policies, that have the most
significant effect on the amounts recognized in the financial
statements, are discussed below.
Vessel
Valuation of vessels
On the reporting date 31 December 2023, the Company has
assessed for its vessels whether there are any indicators of
impairment, or indicators that past impairments should be
reversed. Early signals of improvement in vessel’s utilization
and charter rates could indicate that vessel values exceed
book values for vessels that were impaired in the past.
Impairment indicators include some vessels still being in lay-
up, volatile charter rates and utilization in some segments, and
that the quoted market value of the Company is below book
value of equity. If such indicators exist and the book value
exceeds the recoverable amount, the fixed asset’s fair value is
the higher of net selling price and value in use. Net selling price
is normally obtained by valuations from independent
shipbrokers. Brokers’ estimates assume the vessels are
without charter contracts, immediately available for sale in the
market and that a willing seller and a willing buyer exist. The
Company has made an accounting judgement that it will not
rely on Brokers’ estimates as fair value at the reporting date 31
December 2023, due to a limited number of arm’s length
transactions of comparable vessels in the market. The value in
use was calculated by discounting future cash flows to
present value at the balance sheet date.
In the value in use calculation, the first five years are
based on the Company’s market view. A terminal value is
calculated by assuming that the applicable market view for the
fifth year applies to the remaining years of the vessel’s lifetime.
The market for offshore service vessels is expected to
gradually recover from being volatile for several years. For
vessels fixed on firm contracts with a duration in the period
from 2024 through 2027, the assumption is that the firm
contract remains unchanged during the remaining contract
period, and that the rate levels will gradually improve towards
2028. Options for extended charter periods are not
considered in the value-in-use calculations. However, if
charter hire rates for optional periods are expected to be lower
than market rates for the applicable period, this is considered
in the value-in-use calculation. Three scenarios, High, Base
and Low, were considered. The relative weights were
estimated based on the segments market outlook, current
employment, and vessel supply- demand balance. The High
scenario was weighted from 10% to 30%, the Base scenario
was weighted from 50% to 60% and the Low scenario was
weighted from 20% to 40%. The vessel charter rates, and
utilization are the key driver in all three scenarios and were
estimated for each vessel for the three scenarios.
In order to assess impairment, or reversal of past
impairments, estimates and assumptions regarding expected
cash flows are made which require considerable judgement.
These assumptions are among other based upon existing
contracts, commercial management judgment about future
charter revenue rates, historical performance, discount rates,
class renewal expenses, financial forecasts and industry
trends and conditions.
 
 
Notes to the accounts
29
SIEM
Offshore
 
Inc. Annual Report 2023
Note 4
Segment Reporting
The Company identifies its reportable segments and disclose
segment information under IFRS8 Operating Segments which
requires Siem Offshore Inc to identify its segments according
to the organization and reporting structure used by
management. Operating Segments are components of a
business that are evaluated regularly by the chief operating
decision maker for the purpose of assessing performance and
allocating resources.
 
The Company’s chief operating decision maker is the
management board, comprised of the CEO, CFO, CCO, CHRO
and COO. Generally, financial information is required to be
disclosed on the same basis that is used by the chief operating
decision maker. The Company’s operating segments
represent separately managed business areas with unique
products serving different markets.
 
As from 1 January 2023, the reporting segments have been
changed, in order to reflect how the management is following
up the segments. The Scientific Core-drilling segment has
been included in the segment OSCV and WIV, and the
segment was renamed and is now referred to as Subsea. The
Canadian-owned AHTS vessel is now included under the
segment AHTS. The Brazilian fleet segment was renamed and
is now referred to as Fast Crew & Oil Spill Recovery Vessels.
The comparable figures of previous periods have been
updated. The reportable segments are Platform Supply
Vessels (PSVs), Subsea Vessels, Anchor-Handling Tug Supply
(AHTS) Vessels, Fast Crew & Oil Spill Recovery Vessels and
Other.
The PSV segment includes 6 Platform Supply Vessels at
the end of 2023 (2022: 6). The Subsea segment includes 4
 
 
 
 
 
 
 
 
 
Offshore Subsea Construction Vessels, 2 Well Intervention
Vessels and of 1 Scientific core-drillship at the end of 2023
(2022: same number of vessels as in 2023). The ATHS
segment includes 8 large AHTS vessels and 1 small AHTS
vessel at the end of 2023 (2022: same number of vessels as in
2023). The Fast Crew & Oil Spill Recovery Vessels consists of
2 Oil-spill Recovery Vessels and 2 smaller fast crew vessels at
the end of 2023 (2022: 2 +3). The Bareboat charterer of the
small supply vessel “Siem Caetes”, has exercised its option to
purchase the vessel. The vessel was formally sold and
delivered in December 2023. In addition, the Company held an
ownership at 41% of one vessel that is reflected under the line
"Result from associated companies", and hence not included
below. The 41% owned vessel “Big Orange XVIII” was sold for
green recycling in August 2023. The number of vessels at
year-end 2023 was 26, compared to 28 as per year-end 2022.
Siem Offshore Inc uses two measures of segment results,
Operating Revenue and Operating Margin.
Intersegment sales and transfers reflect arm’s length
prices as if sold or transferred to third parties at the time of
inception of the internal contract, which may cover several
years. Transfers of business or fixed assets within or between
the segments are reported without recognizing gains or
losses. Results of activities not considered part of Siem
Offshore Inc.’s main operations as well as unallocated
revenues, expenses, liabilities and assets are reported
together with Other under the caption “Other and
eliminations”.
 
The following tables include information about the
Company’s operating segments.
 
CONSOLIDATED
(Amounts in USD 1,000)
2023
2022
Operating revenue by segments
Platform Supply Vessels
48,419
36,157
Subsea Vessels
186,981
158,911
Anchor Handling Tug Supply Vessels
85,031
61,568
Fast Crew & Oil Spill Recovery Vessels
14,272
16,126
Other/Intercompany elimination
1,323
1,543
Total operating revenue
336,026
274,306
CONSOLIDATED
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment reporting
Note 4
SIEM
Offshore
 
Inc. Annual Report 2023
30
 
 
 
 
 
 
 
 
(Amounts in USD 1,000)
2023
2022
Operating margin by segments
Platform Supply Vessels
17,919
7,410
Subsea Vessels
123,932
91,561
Anchor Handling Tug Supply Vessels
34,394
17,126
Fast Crew & Oil Spill Recovery Vessels
4,273
7,541
Other/Intercompany elimination
6,270
2,733
Administrative expenses
-22,301
-22,596
Total operating margin from segments
164,486
103,776
 
 
Depreciation and amortization by segments
Platform Supply Vessels
10,069
9,330
Subsea Vessels
35,592
34,283
Anchor Handling Tug Supply Vessels
18,264
16,435
Fast Crew & Oil Spill Recovery Vessels
2,730
2,883
Other/Intercompany elimination
1,369
1,374
Total Depreciation
 
and amortization by segments
68,023
64,305
Reversal of Impairments/ (Impairment) by segments
Platform Supply Vessels
4,966
-
Subsea Vessels
62,000
-
Total Reversal of Impairments/ (Impairment) by segments
66,966
-
See note 5 for further information related to revsersal of impairment.
Capital expenditures by business area for tangible assets
Platform Supply Vessels
7,528
4,368
Subsea Vessels
13,692
12,362
Anchor Handling Tug Supply Vessels
11,356
7,840
Fast Crew & Oil Spill Recovery Vessels
915
300
Other/Intercompany elimination
-
53
Total capital expenditures
33,492
24,923
Book value by business area for tangible assets
Platform Supply Vessels
132,142
128,479
Subsea Vessels
503,943
464,142
Anchor Handling Tug Supply Vessels
198,087
204,235
Fast Crew & Oil Spill Recovery Vessels
6,604
7,922
Other/Intercompany elimination
5,903
1,952
Total book value
846,680
806,730
Photo: Siem Offshore
.
 
doc1p32i0
 
 
 
 
Notes to the accounts
31
SIEM
Offshore
 
Inc. Annual Report 2023
Photo: Siem Offshore
 
 
SIEM
Offshore
 
Inc. Annual Report 2023
32
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 5
Vessels, Equipment and Capitalized Project Cost
Tangible assets
CONSOLIDATED
(Amounts in USD 1,000)
Land and
buildings
Vessels and
equipment
Dry-docking
Capitalized
project cost
Total
Purchase cost on 1 January 2022
3,506
2,127,709
44,258
8,512
2,183,985
Capital expenditure
 
-
15,784
9,139
-
24,923
The year's disposal at cost
-
-1,476
-727
-
-2,203
Effect of exchange rate differences
54
-4,887
-25
-272
-5,130
Purchase cost on 31 December 2022
3,560
2,137,131
52,645
8,240
2,201,575
Accumulated depreciation on 1 January 2022
-2,257
-757,762
-21,065
-6,079
-787,163
Accumulated impairment on 1 January 2022
-
-549,737
-
-
-549,737
The year's depreciation
-527
-54,280
-8,929
-569
-64,305
The year's disposal of accumulated depreciation
-
1,208
727
-
1,934
Effect of exchange rate differences
-33
4,238
1
219
4,425
Accumulated depreciation and impairment on 31
December 2022
-2,818
-1,356,332
-29,267
-6,429
-1,394,846
Net book value on 31 December 2022
742
780,798
23,378
1,811
806,730
Purchase cost on 1 January 2023
3,560
2,137,131
52,645
8,240
2,201,575
Capital expenditure
732
22,240
10,520
-
33,492
Additions related to IFRS 16
3,407
1,317
-
-
4,724
Movement between groups
-
-38,165
-
-
-38,165
The year's disposal at cost
-
-291
-142
-
-433
Effect of exchange rate differences
80
9,342
409
-70
9,761
Purchase cost on 31 December 2023
7,778
2,131,575
63,432
8,170
2,210,954
Accumulated depreciation on 1 January 2023
-2,818
-809,054
-29,267
-6,429
-847,567
Accumulated impairment on 1 January 2023
-
-547,279
-
-
-547,279
Movement between groups
 
-
38,165
-
-
38,165
The year's depreciation
-526
-57,566
-9,659
-273
-68,023
The year's reversal of impairment
-
66,966
-
-
66,966
The year's disposal of accumulated depreciation
-
42
142
-
184
Effect of exchange rate differences
-65
-6,359
-359
64
-6,719
Accumulated depreciation and impairment on 31
December 2023
-3,408
-1,315,085
-39,143
-6,637
-1,364,274
Net book value on 31 December 2023
4,369
816,490
24,289
1,533
846,680
The balance of capitalized project costs relates to specific contracts. The costs are amortized over the term of the specific
charter contracts.
 
 
 
 
Notes to the accounts
33
SIEM
Offshore
 
Inc. Annual Report 2023
 
 
The vessels are divided into the following components and economical lives:
Component
Percentage of total
Economic life
Hull
27%
30 years
Cargo equipment
17%
30 years
Marine equipment
10%
15 years
Crew equipment
9%
15 years
Engine
18%
30 years
Engine system
6%
30 years
Combined sewerage system
 
13%
30 years
Docking
 
and class renewals
5 years
Equipment
3 years
Impairment vessels
The Book value on 31 December 2023 of tangible and
intangible assets with finite lives is tested for impairment
whenever events or changes in circumstances indicate that
the carrying value may not be recoverable. If such indicators
exist and the book value exceeds the recoverable amount, the
fixed asset’s residual value is the higher of net selling price and
value in use. Net selling price is normally obtained by
valuations from independent shipbrokers. Brokers’ estimates
assume the vessels are without charter contracts, immediately
available for sale in the market and that a willing seller and a
willing buyer exist. The value in use is calculated by
discounting future cash flows to present value at the balance
sheet date. The same approach has been applied at testing if
impairments that were recognized in previous periods could
be reversed for certain vessels. On 31 December 2023 value of
use was calculated for the impairment testing for all vessels. In
addition to value in use calculations, management has
obtained brokers’ estimates for all the group’s vessels from
two independent and reputable shipbrokers on 31 December
2023. The obtained broker estimates were primarily used to
compare and test the reasonableness of management’s value
in use calculations. The Company concluded to base its vessel
valuations on a value in use model.
 
As of 31 December 2023 the Company identified
impairments indicators of potential reversal of past
impairments. Impairment indicators were mainly related to the
quoted market value of the Company which was above book
value of equity. Based on such indicators, impairment tests
were performed for all OSV vessels. The Company concluded
to recognize reversal of past impairments for four vessels
based on a value in use model with parameters and estimates
made on the reporting date 31 December 2023.
Also see note 23 – Subsequent events in relation to a
sales-agreement for 9 vessels.
 
 
 
 
Value-in-use (VIU)
VIU is based on the present value of discounted cash flows for
each separate Cash Generating Unit (CGU). Remaining firm
charter hire periods are considered. The first five years are
based on the Company’s market view. A terminal value is
calculated by assuming that the applicable market view for the
fifth year applies to the remaining years of the vessel’s lifetime.
Three scenarios have been considered, and a weighted
average of the scenarios has been calculated.
Discount rate
The discount rate used in the value-in-use calculation is a
weighted average cost of capital (WACC) after tax was 9.46%
(2022: 9.17%).
Operating expenses
Operational expenses that are directly attributable to the CGU
are based on budget and forecasts with an annual escalation
as applicable. Dry-docking cost related to class renewals and
periodic maintenance costs are included at estimated cost.
Fair value less cost of disposal
FVLCOD (level 3) is the amount that would be obtained from a
sale of the asset in a regular market, less cost of sales, based
on the average of third-party valuation reports from two
independent ship brokers. The Company understands that
shipbrokers apply newbuilding price parity as basis for their
appraisals. Newbuilding prices have been adjusted for
building supervision costs and other additional costs, which
results in an estimated delivered cost of a newbuilding with
prompt delivery adjusted for age of each vessel.
 
 
 
 
 
 
 
 
 
 
SIEM
Offshore
 
Inc. Annual Report 2023
34
 
Climate risk
Management has considered the potential impacts of climate
risk and whether this will have an adverse impact on the future
use of the Company’s vessels. The Company operates world-
wide within the offshore oil and gas sector and the offshore
renewable sector. It’s expected that demand for the Group’s
services could increase due to climate related opportunities.
Management does not consider there is a significant risk that
the Company’s vessels will become obsolete due to climate
considerations as they form a key part in the transition to the
provision of sustainable energy. The Company has assumed
that its vessels can be utilized in their assumed technical
lifetime. In a process of transition from oil and gas energy
sources, the Company assumes that these markets may
reduce its demand for the vessels owned and operated by the
Company. However, the Company assumes that a shortfall in
vessel demand from oil and gas related industries will be
 
adequately compensated by increase in demand from the
offshore renewable energy industry. This relates to vessel
utilization and vessels’ charter rates.
 
Sensitivities
The VIU calculation is mainly affected by changes in the
WACC and freight rate assumptions. As a majority of the
vessels have been impaired in past periods, variances in the
assumptions in the value in use model may have significant
effects on vessel valuation estimates. The WACC used was
9.46% (2022: 9.17%).
A reduction of freight rate assumption of USD 1,000 per day for
each vessel would reduce the value of the fleet by
approximately USD 78 million. An increase in freight rate
assumption of USD 1,000 per day would increase the value of
the fleet by approximately USD 78 million.
 
An increase in WACC of 0.5% would reduce the total value of
the fleet by approximately USD 34 million. A decrease in
WACC of 0.5% would increase the total value of the fleet by
approximately USD 36 million.
Reversal of impairment
(Amounts in USD 1,000)
Vessel
Valuation Method
Jan - Dec 2023
Reversal of
Impairment
31 Dec 2023
net book value
PSV 1
VIU
4,966
18,803
SUBSEA 1
VIU
20,800
70,863
SUBSEA 2
VIU
21,600
69,523
SUBSEA 3
VIU
19,600
70,851
Total
66,966
230,039
 
 
 
Notes to the accounts
35
SIEM
Offshore
 
Inc. Annual Report 2023
.
 
 
 
 
 
 
Note 6
Investment in Subsidiaries
Company
Registered office
Ownership
and voting
share
Revenue
Net profit
 
(Amounts in USD 1,000)
Siem Offshore AS
Kristiansand, Norway
100%
12,484
-541
Siem Offshore Invest AS
Kristiansand, Norway
100%
8,690
8,818
Siem Offshore Rederi AS
Kristiansand, Norway
100%
150,824
42,263
Siem Offshore do Brasil S.A.
Rio de Janeiro, Brazil
100%
32,998
10,707
Siem AHTS Pool AS
Kristiansand, Norway
78%
61,669
-4,708
Siem Offshore Management (US) Inc.
Texas, USA
100%
181
61
Siem Offshore US Holding AS
Kristiansand, Norway
100%
-
267
ODL AS
Kristiansand, Norway
100%
33,433
17,655
DSND Subsea Ltd
London, England
100%
-
-
Total value recorded in the statement of financial position of the Parent Company
 
 
The above companies are owned by the Parent. In addition, the subsidiaries own the following companies:
Company
Registered office
Share and voting rights
Siem Offshore Crewing AS
Kristiansand, Norway
100%
Siem Offshore Maritime Personnel AS
Kristiansand, Norway
100%
Siem Pilot DA
Kristiansand, Norway
100%
Aracaju Serviços Auxiliares Ltda
Rio de Janeiro, Brazil
100%
Siem Offshore Servicos Maritimos LTDA
Rio de Janeiro, Brazil
100%
Overseas Drilling Ltd
Groningen, The Netherlands
100%
Siem Offshore Canada Inc
Dartmouth, Canada
100%
Secunda Holdings LP
St. John's, Canada
100%
Siem Offshore Canada LP
Dartmouth, Canada
100%
Siem Offshore Australia Pty Ltd
Perth, Australia
100%
Siem AHTS Pool Australia PTY LTD
Perth, Australia
100%
Siem Offshore Crewing Australia PTY Ltd
Perth, Australia
100%
Siem Offshore LLC
Delaware, USA
100%
Siem Real Estate GmbH
Leer, Germany
100%
Consub Delaware LLC, USA was dissolved in 2023.
SIEM
Offshore
 
Inc. Annual Report 2023
36
 
 
 
 
 
 
 
 
 
 
 
 
Share
capital
Book equity
Cost price
Book value
 
Minority
share of net
profit/(loss)
Minority share of
net equity
Impairments/
(reversal of
impairments) made
in 2023
35
6,292
16,194
8,094
-
-
-3,400
898
139,500
98,369
98,369
-
-
-
6,175
194,680
401,834
256,440
-
-
110,000
83,838
-52,531
135,978
-
-
-
-
163
-24,023
451,728
-
-1,381
-5,085
-
1
609
1
1
-
-
-
5
162
961
187
-
-
-
4
23,361
12,672
12,672
-
-
-
-
-118
-
-
-
-
-
287,933
1,117,736
375,763
-1,381
-5,085
106,600
.
 
 
Notes to the accounts
37
SIEM
Offshore
 
Inc. Annual Report 2023
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 7
Investment in Associated Companies
Figures for associated companies included in the consolidated accounts based on the equity method of accounting.
31 December 2023
COMPANY NAME
PR Tracer
Offshore
ANS
KS Big
 
Orange
XVIII
Total
(Amounts in USD 1,000)
Income Statement
Operating revenues
3,538
217
3,755
Operating expenses
-2,668
-20
-2,689
Depreciation and Amortization
-
518
518
Operating profit
870
714
1,585
Net financial items
310
65
375
Net profit
1,180
779
1,959
Siem Offshore´s share of net profit
488
322
810
Adjustments consolidated accounts
-
-260
-260
Result from associated companies
488
62
550
Statement of financial position
Current assets
4
1
5
Cash
1,219
93
1,312
Total assets
1,223
94
1,317
Equity
1,002
92
1,094
Current liabilities
222
2
224
Total equity and liabilities
1,223
94
1,317
Siem Offshore's share of booked equity
414
38
452
Added/reduced in the period
Adj. IFRS and fair value in excess of book value for vessel and goodwill as of 31
December
-
-
-
Book value as of 31 December
414
38
452
31 December 2023
COMPANY NAME
KS Big
Orange
XVIII
KS Big
Orange
XVIII
Total
(Amounts in USD 1,000)
Specification of changes net book value in Siem Offshore's accounts
Net book value as of 1 January
1,784
898
2,682
This year's share of net profit/(loss)
488
62
550
This year's share of other comprehensive income
-
-
-
Dividends
-1,824
-894
-2,718
Effect of exchange rate differences
-35
-28
-63
Net book value as of 31 December
414
38
452
SIEM
Offshore
 
Inc. Annual Report 2023
38
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Of which:
Amortisation of fair value in excess of book value for vessels and goodwill as of 1 January
-
-
-
Effect of exchange rate differences
-
-
-
 
Fair value in excess of book value for vessels and goodwill as of 31 December 2023
-
-
-
COMPANY NAME
Registered office
Consolidation
Owner
interest
Voting
 
rights
Paid in
capital
Issues, not
paid in capital
PR Tracer Offshore ANS
Kristiansand, Norway
Equity accounting
41.33%
41.33%
1,633
-
KS Big Orange XVIII
Kristiansand, Norway
Equity accounting
41.33%
41.33%
8
5
Total
1,640
5
Siem Offshore Ghana Ltd remained dormant in 2023 and has been excluded from the table. Assets and liabilities are
 
considered
immaterial to the Company's consolidated accounts.
31 December 2022
COMPANY NAME
PR Tracer
Offshore
ANS
KS Big
Orange
XVIII
Total
(Amounts in USD 1,000)
Income Statement
Operating revenue
4,508
381
4,889
Operating expenses
-3,931
-20
-3,951
Operating profit
577
361
938
Net financial items
123
21
144
Net profit
700
381
1,082
Result from associated companies
288
158
446
Statement of financial position
Current assets
541
-
541
Cash
3,778
1,510
5,288
Total assets
4,319
1,510
5,829
Equity
4,318
1,494
5,812
Current liabilities
2
15
17
Total equity and liabilities
4,319
1,510
5,829
Siem Offshore's share of booked equity
1,784
618
2,402
Added/reduced in the period
Adj. IFRS and fair value in excess of book value for vessel and goodwill as of 31
December
-
281
281
Net book value in Siem Offshore as of 31 December
1,784
898
2,682
doc1p40i0
Notes to the accounts
39
SIEM
Offshore
 
Inc. Annual Report 2023
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
31 December 2022
COMPANY NAME
PR Tracer
Offshore
ANS
KS Big
Orange
XVIII
Total
(Amounts in USD 1,000)
Specification of changes net book value in Siem Offshore's accounts
Net book value as of 1 January
1,654
841
2,495
This year's share of net profit/(loss)
288
158
446
This year's share of other comprehensive income
-
-
-
Effect of exchange rate differences
-159
-100
-259
Net book value as of 31 December
1,784
898
2,682
Of which:
Amortisation of fair value in excess of book value
for vessels and goodwill
-
314
314
Effect of exchange rate differences
-
-33
-33
 
Fair value in excess of book value for vessels and goodwill as of 31 December 2022
-
281
281
COMPANY NAME
Registered office
Consolidation
Owner
interest
Voting
rights
Paid in
capital
Issues, not
paid in capital
PR Tracer Offshore ANS
Kristiansand, Norway
Equity accounting
41.33%
41.33%
1,633
-
KS Big Orange XVIII
Kristiansand, Norway
Equity accounting
41.33%
41.33%
8
5
Total
1,640
5
.
 
 
 
SIEM
Offshore
 
Inc. Annual Report 2023
40
.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 8
Pension Costs and Obligations
CONSOLIDATED
(Amounts in USD 1,000)
2023
2022
Pension cost recognized in the income statement
Present value of current years benefit earned
1,245
1,183
Interest expense
255
159
Expected return on plan assets
-229
-134
Administration cost
17
16
Social contribution
152
133
Impact of curtailment/settlement
 
-208
-277
Net periodic pension cost (see Note 17)
1,231
1,080
The development in the defined benefit obligation
At 1 January
8,534
8,364
Present value of current years benefit earned
1,245
1,183
Interest expense
255
159
Payroll tax of employer contribution, assets
-202
-199
Benefits paid
-57
-88
Remeasurements loss/(gain)
325
120
Exchange differences
-313
-1,004
At 31 December
9,787
8,534
The development in the fair value of plan assets
At 1 January
7,545
7,350
Expected return on plan assets
229
134
Employer's contribution
1,631
1,614
Payroll tax of employer contribution, assets
-202
-199
Benefits paid
-57
-88
Remeasurements loss/(gain)
-438
-378
Exchange differences
-270
-888
At 31 December
8,439
7,545
Net pension liability
1,348
989
 
Notes to the accounts
41
SIEM
Offshore
 
Inc. Annual Report 2023
 
 
 
 
 
 
 
 
 
 
 
Pension liability
CONSOLIDATED
(Amounts in USD 1,000)
2023
2022
Present value of funded obligations
9,787
8,534
Fair value of plan assets
-8,439
-7,545
Present value of funded obligations
1,348
989
Financial assumptions
Discount rate
3.10%
3.00%
Expected return on funds
3.10%
3.00%
Expected wage adjustment
3.50%
3.50%
Adjustment of the basic National Insurance amount
3.25%
3.25%
Expected pension increase
1.80%
1.50%
Number of employees in defined benefit scheme
61
61
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 9
Receivables
 
PARENT COMPANY
CONSOLIDATED
12/31/2023
12/31/2022
(Amounts in USD 1,000)
12/31/2023
12/31/2022
Long-term receivables
-
-
Deposit related to legal dispute in Brazil
 
2,861
2,282
88,288
10,397
Intercompany receivables
-
-
-
-
Receivable related to sale of "Siem Marlin" (1)
19,962
17,398
-
-
Prepaid guarantee commission (2)
7,313
9,589
-
2
Other long-term receivables
1,201
367
88,288
10,399
Total long-term receivables
31,337
29,636
12/31/2023
12/31/2022
Other short-term receivables
12/31/2023
12/31/2022
-
-
Prepaid expenses
5,220
5,780
-
-
Unbilled revenue
7,378
6,400
-
-
Outstanding insurance claims (3)
2,502
1,525
-
-
Prepaid income taxes and other taxes
2,013
1,469
-
-
VAT
 
-44
5
28,366
980
Intercompany receivables
-
-
52
-
Other short-term receivables
5,847
2,689
28,418
980
Total other short-term receivables
22,917
17,868
(1) Total receivables related to the sale of "Siem Marlin" in 2019 amounts to USD 25 million. Net book value is USD
 
20.0 million.
The receivable is secured by mortgage in the vessel "Siem Marlin".
(2) Prepaid guarantee commission relates to Siem Helix vessels facilities.
(3) Outstanding insurance claims refer to vessel breakdown expenses qualifying for insurance reclaim. The amount is net of own
deductibles.
 
 
 
 
SIEM
Offshore
 
Inc. Annual Report 2023
42
.
Note 10
Restricted Cash
 
USD 6.3 million of the Company's cash balance at year-end were restricted funds of which USD 1.5 million was for
 
tax
withholdings and USD 4.8 million represented deposits for bank guarantees and secured loans.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 11
Taxes
CONSOLIDATED
(Amounts in USD 1,000)
2023
2022
Temporary differences
Deferred tax
Time frame
Participation in limited liability companies
Long
2,979
2,943
Operating assets
Long
53,975
-4,636
Pension funds/obligations
Long
-958
-907
Other long-term differences
Long
530
-
Other short-term differences
56,527
-2,601
Tax loss carried forward
-181,917
-34,613
Basis for deferred tax (tax asset)
-125,390
-37,214
Deferred tax (tax asset) Norway
-27,586
-8,187
Deferred tax (tax asset)
-27,586
-8,187
Deferred tax (asset) recognized in statement of financial
position as of 31 December
Deferred tax asset
 
27,586
8,636
Deferred tax liability in Parent and subsidiary
-
-449
Net deferred tax (tax asset) Norway
27,586
8,187
Deferred tax assets are recognized as non-current assets as it is probable through prospective earnings that it
 
can be utilized.
 
The Company is subject to taxes in several jurisdictions, where significant judgment is required in calculating the tax provision
 
for
the Company. There are several transactions for which the ultimate tax cost is uncertain and for which the Company
 
makes
provisions based on an assessment of internal estimates, tax treaties and tax regulations in countries of operation
 
and
appropriate external advice. Where the final tax outcome of these matters is different from the amounts that
 
were initially
recorded, such difference will impact the tax charge in the period in which the outcome is determined.
 
The Company seeks to optimize its tax structure to minimize withholding taxes when operating
 
vessels abroad, avoiding double
taxation, and minimizing corporate tax paid by making optimal use of the shipping taxation rules
 
that apply. It is, however, a
challenging task to optimize taxation, and there is always a risk that the Company may end up paying
 
more taxes than the
theoretical minimum, which may in turn affect the financial results negatively.
 
 
Notes to the accounts
43
SIEM
Offshore
 
Inc. Annual Report 2023
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total tax liabilities
CONSOLIDATED
(Amounts in USD 1,000)
12/31/2023
12/31/2022
Non-current tax liabilities falling due after 1 year
92
698
Payable taxes falling due within 1 year
2,228
635
Tax liabilities
2,320
1,333
Tax expense
CONSOLIDATED
(Amounts in USD 1,000)
2023
2022
Taxes payable
399
-786
Change in deferred tax asset /liability
-19,426
536
Total
-19,027
-250
There is no tax amount related to the items under Other Comprehensive Income.
Tax expense
PARENT COMPANY
(Amounts in USD 1,000)
2023
2022
Change in deferred tax asset/liabilities
-
1,075
Tax effect from group contribution
 
8,345
1,053
Tax expense on ordinary result
 
12
14
Total
8,357
2,142
Tax liability
PARENT COMPANY
(Amounts in USD 1,000)
12/31/2023
12/31/2022
Non-current tax liabilities falling due after 1 year
3,114
309
Tax liabilities
3,114
309
 
 
 
SIEM
Offshore
 
Inc. Annual Report 2023
44
.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 12
Borrowings
Carrying amount - excluding CIRR
CONSOLIDATED
(Amounts in USD 1,000)
12/31/2023
12/31/2022
Secured
Current
Non-current
Total
Current
Non-current
 
Total
Fixed rates bank loans
82,672
97,196
179,868
22,706
196,348
219,054
Floating rates bank Loans
130,834
146,638
277,472
37,023
312,141
349,164
Total secured borrowings
213,506
243,835
457,341
59,730
508,489
568,218
Unsecured
Current
Non-current
Total
Current
Non-current
 
Total
Loans from related parties (1)
-
7,830
7,830
-
4,278
4,278
Total unsecured borrowings
-
7,830
7,830
-
4,278
4,278
Total borrowings
213,506
251,664
465,170
59,730
512,767
572,496
Fees and expenses
-981
-1,803
-2,784
-752
-2,772
-3,524
Total borrowings incl. fees
212,525
249,861
462,387
58,978
509,994
568,972
Fair value - excluding CIRR
CONSOLIDATED
(Amounts in USD 1,000)
12/31/2023
12/31/2022
Secured
Current
Non-current
Total
Current
Non-current
 
Total
Fixed rates bank loans
82,672
88,728
171,400
22,706
182,555
205,261
Floating rates bank Loans
130,834
146,638
277,472
36,271
313,647
349,918
Total secured borrowings
213,506
235,367
448,873
58,978
496,201
555,179
Unsecured
Current
Non-current
Total
Current
Non-current
 
Total
Loans from related parties (1)
-
7,830
7,830
-
4,278
4,278
Total unsecured borrowings
-
7,830
7,830
-
4,278
4,278
Total borrowings
213,506
243,197
456,703
58,978
500,479
559,457
Fees and expenses
-981
-1,803
-2,784
-752
-2,772
-3,524
Total
 
212,525
241,394
453,919
58,226
497,707
555,933
The Company has a portfolio of bank loans secured with mortgage in vessels.
The creditors and guarantors are in general first-
class commercial banks and state-owned financial institutions with ratings on or above BBB- and AAA.
 
Siem Offshore has agreed
restructured terms with the equitized lenders. The restructured terms shall remain in force till 31 December 2024,
 
corresponding
to extended maturity of the restructured facilities. Financial covenants include minimum available cash at USD 25 million
 
and a
minimum book equity ratio of Siem Offshore at 10%. Other terms relate to vessel buy-out options, no-dividend
 
clause, restrictions
on investments in assets, restrictions to acquisitions of shares and business undertakings, negative pledge, restrictions to selling
or otherwise disposal of assets, no equitization of the Brazilian facilities, financial indebtedness, change of control
 
clause, PIK-
interest arrangements and three cash sweep mechanisms; one facility cash sweep, one Siem ATHS Pool AS cash
 
sweep and one
Company cash sweep.
 
(1) At year-end 2023 the Company held a secured revolving credit facility with Siem Industries
 
S.A. at USD 6 million. The credit
will be reduced by USD 2 million annually and will expire on 31.12.2026. The credit facility remained undrawn
 
at year-end 2023.
 
Notes to the accounts
45
SIEM
Offshore
 
Inc. Annual Report 2023
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The non-controlling interest in Siem AHTS Pool AS has paid-in a subordinated shareholder's loan at USD 7.8 million. Interests
 
are
accrued on a monthly basis and added to the principal debt. Installments and interests will become payable
 
from 2025
contingent upon approval from mortgage debt lenders.
 
Instalments falling due over the next 5 years - excluding CIRR
CONSOLIDATED
(Amounts in USD 1,000)
Mortgage debt
Other interest
bearing debt
Total
2024
212,525
-
212,525
2025
40,281
-
40,281
2026
43,639
-
43,639
2027
41,417
783
42,200
2028
30,881
783
31,664
Thereafter
85,814
6,264
92,078
Total
454,557
7,830
462,387
In addition to fixed installments, contingent instalments from cash sweep mechanisms apply. There are fixed instalments
 
for
certain facilities, mainly related to the Siem Helix 1 and 2 and the Siem Symphony facilities.
The book value of mortgaged assets consists of non-current tangible assets and a portion of the accounts
 
receivables that
amounts to USD 888 million at year end.
 
The Parent holds no financial debt following the financial restructuring in 2021.
The Company and the Parent Company are in compliance with their financial covenants on 31 December 2023.
 
PARENT COMPANY
CIRR arrangements
CONSOLIDATED
12/31/2023
12/31/2022
(Amounts in USD 1,000)
12/31/2023
12/31/2022
-
-
Total CIRR deposit
13,759
20,638
-
-
CIRR loan drawn
13,759
20,638
-
-
Net Commitment
-
-
Prior to ordering vessels from Norwegian yards, the Company applied for fixed 12-year interest rate options related to
 
the long-
term financing of such vessels.
 
The Company was granted such options for each of the relevant vessel by the Norwegian Export
Credit Agency. Long-term loans drawn from the Norwegian Export Credit Agency are placed as corresponding deposits
 
in the
Bank as financial security for the loans drawn.
Net debt
CONSOLIDATED
(Amounts in USD 1,000)
12/31/2023
12/31/2022
Cash and cash equivalents
97,325
94,949
Borrowings, repayable within one year
-212,525
-58,978
Borrowings, repayable after one year
-249,861
-509,994
Net debt
-365,062
-474,023
Cash and cash equivalents
97,325
94,949
Gross debt - fixed interest rates
-179,868
-219,054
Gross debt - floating interest rates
-282,518
-349,918
Net debt
-365,062
-474,023
 
 
SIEM
Offshore
 
Inc. Annual Report 2023
46
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings
CONSOLIDATED
(Amounts in USD 1,000)
Borrowings as at 1 January 2022
624,251
Lease liability 1 January 2022
3,518
Lease payments
-1,812
Repayment of borrowings
-54,963
Drawn amount PIK interest and fees
682
New loans related parties
1,973
Accrued interest
2,040
Foreign exchange adjustments
-3,597
Other, amortization
 
-1,110
Borrowings and lease liability at 31 December 2022
570,981
Lease payments
-1,847
New leases
5,463
Repayment of borrowings
-112,145
Drawn amount PIK interest and fees
3,405
New loans related parties
3,552
Accrued interest
-1,462
Foreign exchange adjustments
-593
Other, amortization
 
740
Borrowings and lease liability at 31 December 2023
468,095
Borrowings and lease liability
CONSOLIDATED
(Amounts in USD 1,000)
12/31/2023
12/31/2022
Borrowings repayable within one year
212,525
58,978
Borrowings repayable after one year
249,861
509,994
Lease liability repayable within one year
918
1,666
Lease liability repayable after one year
4,791
343
Total
468,095
570,981
 
 
 
Notes to the accounts
47
SIEM
Offshore
 
Inc. Annual Report 2023
.
 
 
 
 
 
 
 
 
 
 
Note 13
Other Current Liabilities and Other Current Provision
PARENT COMPANY
CONSOLIDATED
12/31/2023
12/31/2022
(Amounts in USD 1,000)
12/31/2023
12/31/2022
-
-
Social security tax, etc.
3,563
2,580
-
-
Unearned income
3,158
3,398
-
-
Other accrued cost, mainly regarding operating
expenses vessels 1)
12,433
12,474
-
-
Current lease liability
918
1,666
46,497
138
Intercompany liabilities 2)
-
-
230
1,058
Accrued salaries, holiday pay, payroll tax and other
4,566
6,282
46,727
1,196
Total other current liabilities
24,639
26,399
1)
Other accrued cost includes accrued commission and accruals for purchase orders.
2)
Intercompany liabilities relate to cash-pool arrangements
 
 
 
 
 
 
 
 
 
 
PARENT COMPANY
CONSOLIDATED
12/31/2023
12/31/2022
(Amounts in USD 1,000)
12/31/2023
12/31/2022
-
-
Provision for possible legal claims in Brazil
3,151
13,830
-
-
Accrual for recognized penalty claim in Brazil
 
15,859
4,262
-
-
Total other current provision
19,010
18,092
An accrual at USD 19 million has been recorded for possible and recognized legal claims related to charter
 
contracts and labour
cases in Brazil.
 
 
 
SIEM
Offshore
 
Inc. Annual Report 2023
48
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 14
Related Party Transactions
The Company’s largest shareholder Siem Sustainable Energy S.à r.l., with a holding of 34.86 %, and its parent company, Siem
Industries S.A., are defined as related parties. The Company is charged by Siem Industries S.A. for
 
an annual fee of USD 202 K for
2023 (2022: USD 250 K). The fee is the remuneration for the services provided by the Chairman
 
of the Board and cost related to
other services.
Details related to transactions, loans and remuneration to the Executive Management and the Board of
 
Directors are set out in
Note 17. The Chairman Kristian Siem is also the Chairman of Siem Industries SA. Director Barry Ridings was
 
also previously a
Director of Siem Industries SA. For the Parent, all subsidiaries listed in Note 6 are also defined as related parties.
 
Director Christen Sveaas is the Chairman of Kistefos AS who holds a 80.1% interest in Viking Supply Ships
 
AB. Viking Supply
Ships AB owns and operates vessels that are competitors to some of the Company’s vessels.
For other related parties, the following transactions were carried out:
Sale of services
CONSOLIDATED
(Amounts in USD 1,000)
2023
2022
Service to entity where director has ownership
20,030
26,829
Total
20,030
26,829
The service is provided to companies in which the Chairman has an interest. Kristian Siem is the Chairman
 
of and controls Siem
Industries S.A. Siem Industries holds an interest in Subsea 7 and Seaway 7. Siem Offshore Rederi AS, 100% owned by
 
the
Company, Siem Offshore LLC, 100% owned by the Company and Siem AHTS Pool AS, 78% owned by the
 
Company, have
chartered vessels to Subsea 7 and Seaway 7 companies during 2023 and 2022.
 
The amounts for 2023 and 2022 also include management services and crew service to subsidiaries of Siem Industries S.A. and
to Subsea 7 and Seaway 7 companies.
Purchase of service
CONSOLIDATED
(Amounts in USD 1,000)
2023
2022
Service from entity where director has ownership
372
519
Total
372
519
Services purchased from related parties for 2023 were mainly cost for corporate management services and Board fees. Service
from entity where director has ownership consist of Board fees from Siem Industries S.A., management fees from
 
Siem Capital UK
Ltd and Siem Kapital AS, all three 100% controlled by Siem Industries S.A.
 
These transactions were at arm’s length.
Balance sheet items following purchase and sale of service
CONSOLIDATED
(Amounts in USD 1,000)
2023
2022
Accounts receivable
2,026
3,568
Accounts payable
500
1,033
Notes to the accounts
49
SIEM
Offshore
 
Inc. Annual Report 2023
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-current liability to related parties
CONSOLIDATED
(Amounts in USD 1,000)
2023
2022
At 1 January
4,278
2,305
Drawings
3,109
1,791
Interest expenses
443
182
At 31 December
7,830
4,278
Non-current liability
The Company holds a long-term credit facility in Siem AHTS Pool AS who has drawn a shareholder's loan
 
from its 22%
shareholder Singa Star PTE LTD. Interest charged has been added to the principal loan. Per agreement,
 
no instalments or interest
payments will fall due till 2025. The loan is unsecured and subordinated to bank debt. The liability is
 
at markets term of interest.
Sale of service
PARENT COMPANY
(Amounts in USD 1,000)
2023
2022
Service to subsidiaries
961
1,118
Total
961
1,118
Purchase of service
PARENT COMPANY
(Amounts in USD 1,000)
2023
2022
Service from subsidiaries
2,959
3,126
Service from associates
250
250
Total
3,209
3,376
Sales to subsidiaries and associates consists of guarantee commissions to Siem Offshore Rederi AS and Siem Offshore Canada
LP.
Service purchased from subsidiaries consists of administrative and corporate services provided by Siem Offshore
 
AS. Service
purchased from associates consists of payment for annual fee for remuneration for the services of
 
the Chairman of the Board and
cost related to office and administration in the Cayman Islands.
All terms used for above transactions are at arm’s length.
SIEM
Offshore
 
Inc. Annual Report 2023
50
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year-end balance sheet items arising from sales and purchases
PARENT COMPANY
(Amounts in USD 1,000)
12/31/2023
12/31/2022
Receivables from related parties
Subsidiaries
927
980
Total
927
980
Payables to related parties
Subsidiaries
115
138
Total
115
138
Non-current loan to subsidiaries
PARENT COMPANY
(Amounts in USD 1,000)
12/31/2023
12/31/2022
At 1 January
10,397
-
Drawings
11,125
6,409
Interest charged
8,268
4,519
Provision for bad debt
-
-526
Exchange rate variations
2
-5
At 31 December
29,791
10,397
The long-term loan to subsidiaries on 31 December 2023, is with Siem Offshore do Brasil SA and Siem AHTS
 
Pool AS. A provision
for the outstanding amount for the long-term loan to Siem Offshore do Brasil SA (USD 24,444) and part of
 
the outstanding amount
to Siem AHTS Pool AS (USD 16,916) has been made and is reflected above. The shares in Siem AHTS
 
Pool AS has a provision of
USD 451,728.
 
Non-current liability to related parties
PARENT COMPANY
(Amounts in USD 1,000)
12/31/2023
12/31/2022
At 1 January
467
467
Instalments
-467
-
At 31 December
-
467
A revolving credit facility of USD 12 million was provided by Siem Industries S.A. effective from 2021. The facility
 
will be reduced
by USD 2 million at the last business date of each year commencing 31 December 2021. As such, the facility
 
is USD 6 million at
year-end 2023 and is undrawn. The liability above reflects the accrued cost under a previous facility. The credit facility
 
is at
market terms of interest.
 
 
 
 
 
 
 
Notes to the accounts
51
SIEM
Offshore
 
Inc. Annual Report 2023
.
 
 
 
 
 
 
 
 
 
 
Note 15
Guarantees
PARENT COMPANY
CONSOLIDATED
12/31/2023
12/31/2022
(Amounts in USD 1,000)
12/31/2023
12/31/2022
-
-
Guarantees related to tax-disputes, Brazil
686
686
444,213
551,906
Guarantees for debt in subsidiaries
-
-
444,213
551,906
Total guarantees
686
686
Guarantees related to disputes and ongoing tax-cases have been raised per request from Brazilian tax-authorities.
 
 
 
 
 
 
 
 
Note 16
Operating Expenses
PARENT COMPANY
CONSOLIDATED
2023
2022
(Amounts in USD 1,000)
2023
2022
-
-
Vessel crew expenses
97,654
94,718
-
-
Other vessel operating expenses
51,585
53,216
3,908
4,404
General and administration
22,301
22,596
3,908
4,404
Total operating expenses
171,540
170,530
 
 
 
 
 
 
 
 
 
Note 17
Salaries and Wages, Number of Employees
Personnel expenses (1)
CONSOLIDATED
(Amounts in USD 1,000)
2023
2022
Salaries and wages
83,865
85,750
Government grants - net wages arrangement in Norway
-4,053
-3,671
Payroll tax
9,500
8,131
Pension costs, see Note 8
1,231
1,080
Other benefit
6,973
8,279
Total personnel expenses
97,516
99,569
(1) Personnel expenses include vessel crew expenses and part of general and administrative expenses, see
 
Note 16.
 
Government grants is a special Norwegian seamen payroll and tax refund scheme given to Norwegian shipping
 
companies.
 
The average number of employees in the Company was 1,208 for 2023 (2022: 1,092), including onshore and offshore
 
employees.
There are no employees in the Parent.
 
 
SIEM
Offshore
 
Inc. Annual Report 2023
52
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Payroll registered to the executive management
(Amounts in USD 1,000)
2023
2022
Salary and other short term compensation
983
851
Total
983
851
Employees included in the above payroll in 2023 were two (2022: two).
Corporate management salaries and other benefits
(Amounts in USD 1,000)
2023
Salary paid
Pension premium
Other benefits
Share options held
CEO Bernt Omdal
528
33
2
4,000
CFO Vidar Jerstad
390
28
2
-
Total
918
61
5
4,000
Members of corporate management do not hold shares in the Company (2022: nil).
(Amounts in USD 1,000)
2022
Salary paid
Pension premium
Other benefits
Share options held
CEO Bernt Omdal
471
33
2
4,000
CFO Vidar Jerstad
314
28
2
-
Total
785
61
5
4,000
The Board of Directors of Siem Offshore Inc. has authorized the award of two programs of Share Options
 
to key employees of the
Company. The first option program expired in 2023, the second option program will expire in 2024. The total
 
cost for the two
programs is zero for 2023 and 2022. See Note 26 for more information.
The Remuneration paid to the Board of Directors in 2023 was USD 338K (2022: USD 448K). The Chairman is compensated by
 
an
annual fee at USD 202K to Siem Industries S.A. The fee includes the remuneration for the services of
 
the Chairman and other cost
related to office and other services. Each of the other Directors are paid USD 56K annually, or pro rata in relation to
 
service part of
the year.
Directors and Officers Liability Insurance (DOLI) is for the fiscal year 2023 placed with AIG Europe Insurance. The
 
DOLI insurance
provides financial protection for the directors and officers of the Company in the event that they are being sued in
 
conjunction
with the performance of their duties as they relate to the Company. The insurance coverage includes the directors’
 
and officers’
personal legal liabilities, including defense - and legal cost. The cover also includes employees in managerial positions.
 
Auditor's remuneration
PARENT COMPANY
CONSOLIDATED
2023
2022
(Amounts in USD 1,000)
2023
2022
86
87
Audit Fee
334
350
-
-
Audit Fee, Other
6
22
-
-
Tax and legal assistance
128
39
49
46
Other consultants, fees
164
179
135
133
Total auditor's remuneration
632
591
 
 
Notes to the accounts
53
SIEM
Offshore
 
Inc. Annual Report 2023
.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 18
Leases
The Company has entered into various operating leases for office premises, office machines and communication
 
satellite
equipment for the vessels. The lease period for the lease agreements varies and most of the leases contain an option
 
for
extension. The interest rates in the calculation of net present values are in the range of 9%-13% depending on the base
 
currency,
the nature of the lease and the length of the leasing agreement.
 
Low value leases and leases with maturity of up to one year from inception are considered insignificant to the financial
statements.
There are no leases for the Parent Company.
Consolidated Statements of Financial Position:
(Amounts in USD 1,000)
CONSOLIDATED
Right of use assets at 01.01.2023
1,712
Additions in 2023
5,463
The year's depreciation
-1,502
Effect of exchange rate differences
7
Right of use assets at 31.12.2023
5,680
The balance sheet includes the following amounts relating to leases:
(Amounts in USD 1,000)
12/31/2023
12/31/2022
Right of use assets*
Land and buildings
4,363
735
Vessels and equipment
1,317
977
Total Right of use assets
5,680
1,712
*included in the line item "Vessels and equipment" in the Consolidated Statements of Financial Position.
(Amounts in USD 1,000)
CONSOLIDATED
Lease liability at 01.01.2023
1,961
Additions in 2023
5,463
Lease payments
-1,847
Interest cost
122
Effect of exchange rate differences
10
Lease liability at 31.12.2023
5,709
(Amounts in USD 1,000)
12/31/2023
12/31/2022
Lease liabilities**
Current
918
1,666
Non-Current
4,791
294
Total Lease liabilities
5,709
1,961
**included in the line item "other liabilities" for current and non-current liabilities respectively in the Consolidated Statements
 
of
Financial Position.
 
 
SIEM
Offshore
 
Inc. Annual Report 2023
54
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Leases as Lessor of vessels:
The total contract backlog as per 31 December 2023 amounts at USD 320 million (2022: USD 442 million). The amount for
 
2023
relates to in total 17 Time Charter contracts. The contract backlog includes firm contracts only, any optional periods
 
have been
excluded. For the Time Charter contracts, the service element related to operations of the vessels (crewing,
 
maintenance etc.) is
also included in the amounts presented below.
There is no Contract Backlog for the Parent Company.
The contract backlog relates to fiscal years and per vessel segments:
12/31/2023
CONSOLIDATED
(Amounts in USD 1,000)
2024
2025
2026 onwards
Total
Vessel Segment
Platform Supply Vessels
31
8
-
39
Subsea Vessels
120
56
40
217
Anchor Handling Tug Supply Vessels
49
1
-
50
Fast Crew & Oil Spill Recovery Vessels
7
6
-
13
Total
208
72
40
320
12/31/2022
CONSOLIDATED
(Amounts in USD 1,000)
2023
2024
2025 onwards
Total
Vessel Segment
Platform Supply Vessels
32
14
8
55
Subsea Vessels
143
108
93
344
Anchor Handling Tug Supply Vessels
12
4
-
16
Fast Crew & Oil Spill Recovery Vessels
13
8
6
27
Total
201
134
107
442
 
 
 
Notes to the accounts
55
SIEM
Offshore
 
Inc. Annual Report 2023
.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 19
Financial Items
PARENT COMPANY
CONSOLIDATED
2023
2022
(Amounts in USD 1,000)
2023
2022
Financial income
3,170
659
Interest income
 
11,028
4,245
27,373
11,993
Interest income intercompany
-
-
-
16,000
Reversal of imp. of shares and rec. from subsidiaries
-
-
28,315
14,387
Other financial income
25
54
58,858
43,039
Total financial income
11,053
4,300
Financial expenses
-852
-143
Interest expenses
-34,209
-23,370
-17,333
-4,874
Interest expenses intercompany
-
-
-
-
Reversal of impairment on Seller's credit "Siem Marlin"
5,771
-
165,097
-526
Reversal of imp. of shares and rec. from subsidiaries
-
-
-46
-16
Other financial expenses
-1,274
-1,005
146,865
-5,559
Total financial expenses
-29,711
-24,375
Other financial items
-
-
Hedge accounting recycling
 
-1,329
-6,232
-221
1,414
Net currency gain/(loss)
10,292
13,968
-221
1,414
Total currency gain/(loss)
8,963
7,736
205,502
38,894
Net Financial Items
-9,695
-12,340
The weighted average cost of debt for the Company was approximately 6.7% (2022: 5.8%) at 31 December.
 
 
 
 
 
 
SIEM
Offshore
 
Inc. Annual Report 2023
56
 
 
 
 
 
 
 
 
 
 
 
Note 20
Earnings/(loss) per Share
CONSOLIDATED
(Amounts in USD 1,000)
2023
2022
Weighted average number of shares outstanding (1,000)
238,852
238,852
Weighted average number of shares diluted (1,000)
238,852
238,852
Result attributable to shareholders
174,515
30,897
Earnings/(loss) per share attributable to equity shareholders
0.73
0.13
Earnings/(loss) per share diluted attributable to equity shareholders
0.73
0.13
 
 
 
 
 
 
 
 
 
 
 
Note 21
Other Gain/(Loss) on Sale of Assets
PARENT COMPANY
CONSOLIDATED
2023
2022
(Amounts in USD 1,000)
2023
2022
-
-
Gain/(loss) on sale of assets, net
-178
-95
-
-
Total
-178
-95
2023
The net loss for the Company on sale of assets of USD 0.2 million is related to the sale of the FCSV
 
"Siem Caetes" in Brazil.
2022
The net loss for the Company on sale of assets of USD 0.1 million is mainly related to the sale of
 
a FIFI system related to one of the
AHTS-vessels and a settlement related to equipment on a Canadian vessel previously sold.
 
 
Notes to the accounts
57
SIEM
Offshore
 
Inc. Annual Report 2023
.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 22
Listing of the 20 Largest Shareholders
as of 31 December 2023
Shareholder
Number of shares
Owner interest
Siem Sustainable Energy S.à r.l.
83,260,604
34.86%
Kistefos AS
79,585,160
33.32%
Songa Capital AS
15,437,092
6.46%
Magnus Leonard Roth
7,305,863
3.06%
Midelfart Capital AS
5,033,786
2.11%
Torstein Tvenge
4,000,000
1.67%
Clearstream Banking S.A.
3,677,529
1.54%
Caceis Bank
3,400,112
1.42%
Banque Pictet & Cie SA
2,212,390
0.93%
Interactive Brokers LLC
2,054,247
0.86%
MP Pensjon PK
1,933,393
0.81%
Six Sis AG
1,128,716
0.47%
Siem Foundation
1,065,475
0.45%
Stratos Investments Ltd.
981,658
0.41%
Ace Crown International Limited
955,654
0.40%
Holmen Spesialfond
909,431
0.38%
Tejø Invest AS
802,700
0.34%
Caceis Investor Services Bank S.A.
755,066
0.32%
J.P. Morgan SE
744,117
0.31%
The Bank of New York Mellon SA/NV
693,745
0.29%
Total 20 largest shareholders
215,936,738
90.41%
Other shareholders
22,915,314
9.59%
Total number of outstanding shares
238,852,052
100.00%
Siem Sustainable Energy S.à r.l. is the main shareholder of Siem Offshore Inc and is controlled by Mr Kristian Siem,
 
who is the
Chairman of the Company and is also the Chairman of Siem Industries S.A., the ultimate parent company of
 
Siem Sustainable
Energy S.à r.l.
 
 
SIEM
Offshore
 
Inc. Annual Report 2023
58
Note 23
Subsequent Events
February 2024:
-
Signed agreements for the Well Intervention Vessels “Siem Helix 1” and “Siem Helix 2”. The new contracts will
commence on 1 January 2025 and 1 January 2026 and replace the existing contracts. The new contracts have a
duration of 6 years for each vessel, with subsequent options of up to 5 years.
-
Entered into a one-year firm contract plus one year option for the OSCV “Siem Spearfish” with
 
PXGEO. The vessel will
be engaged within the marine geophysical segment and support charterer's operations world-wide. The vessel
 
will
commence its new charter upon completion of its class renewal end of February 2024.
March 2024:
 
-
Awarded a contract extension for the MPSV “Siem Dorado” securing utilization for a period reaching
 
towards the end of
Q4 2024. Commencement will be in direct continuation of the current contract with continued operations
 
expected
outside the North Sea.
-
Awarded a contract extension for the PSV “Siem Giant” and the PSV “Siem Atlas” with TotalEnergies
 
EP Brasil. The new
duration for “Siem Giant” is 3 years firm with options up to 4 more years and for “Siem Atlas” the new duration
 
is 9
months firm with options until the end of Q2 2027. Both vessels will commence the contracts in June 2024 in direct
continuation of present contracts.
-
Entered into a contract for the AHTS “Siem Ruby” to an International Oil Major for a period covering the remainder of
2024, with imminent commencement. Operations will take place outside of the North Sea.
April 2024:
 
-
Signed a new contract for the Oil Spill Response Vessel “Siem Marataizes” with a duration of
 
4 years with
commencement 2Q 2024.
-
The Company agreed to sell 9 of its vessels (3 AHTS, 4 PSV and 2 Subsea vessels (OSCV)) to
 
the major shareholder
Siem Sustainable Energy S.a r.l and related companies ("Siem") in exchange for 35.7% of the Company's shares. Siem
will assume USD 117.5 million of existing vessel debt as part of the transaction. The transaction is expected
 
to generate a
gain. For transaction technical purposes, the value of USD 482.5 million was used in the transaction agreement. Further
details can be found in the transaction agreement which will be made available together with the notice for the 2024
Annual General Meeting. Siem will thereafter cease to be a shareholder in the Company and Kristian Siem
 
does not offer
himself for election at the annual shareholders meeting scheduled to be held on the 7th of May 2024. The vessels will
 
be
transferred to Siem as soon as practical and before 1 July 2024. These transactions are pending approval
 
of relevant
shareholders, lenders and certain other parties.
 
 
 
Notes to the accounts
59
SIEM
Offshore
 
Inc. Annual Report 2023
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 24
Financial Instruments by Category
Below is a comparison by category for carrying amounts and fair values of all of the Company’s financial instruments.
31 Decemberember 2023
(Amounts in USD 1,000)
Financial assets at
 
amortized cost
Total
Assets as per statement of financial position
Accounts receivable
41,626
41,626
Other short term receivables
8,306
8,306
CIRR Loan deposits
13,759
13,759
Long term receivables
24,024
24,024
Cash and cash equivalents
97,325
97,325
Total
185,039
185,039
Prepayments do not qualify as a financial instrument and are not included in above amount. Excluded prepayments
 
amount to
USD 21.5 million. Also see Note 9.
31 December 2023
CONSOLIDATED
(Amounts in USD 1,000)
Financial
liabilities at
amortized cost
Total
Liabilities as per statement of financial position
Accounts payable
16,996
16,996
Borrowings
462,387
462,387
CIRR Loans
13,759
13,759
Other non-current liabilities
 
17,335
17,335
Other current liabilities
24,639
24,639
Other current provision
19,010
19,010
Tax liabilities
92
92
Pension liabilities
1,348
1,348
Tax payable
 
2,228
2,228
Adjustments for liabilities that do not qualify as a financial instrument (1)
-37,882
-37,882
Total
519,911
519,911
(1) Non-financial liabilities do not qualify as a financial instrument and are not included in above amount. Excluded
 
liabilities
amount to USD 37,882 consisting of USD 3,758 in Tax liabilities, USD 1,348 in Pension Liability, USD 3,563 in Social Security
Payable, USD 2,228 in Tax payable, USD 3,158 in Unearned Income, USD 4,816 in Accrued Interest and
 
USD 19,010 in provision
for potential legal claims. See Note 13 for information about Social Security Payable and Unearned Income.
SIEM
Offshore
 
Inc. Annual Report 2023
60
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
31 December 2022
CONSOLIDATED
(Amounts in USD 1,000)
Financial assets
 
at amortized cost
Total
Assets as per statement of financial position
Accounts receivable
33,416
33,416
Other short term receivables
4,219
4,219
CIRR Loan deposits
20,638
20,638
Long term receivables
20,047
20,047
Cash and cash equivalents
94,949
94,949
Total
173,270
173,270
Prepayments do not qualify as a financial instrument and are not included in above amount. Excluded prepayments
 
amount to
USD 23.2 million, see Note 9.
31 December 2022
CONSOLIDATED
(Amounts in USD 1,000)
Financial
liabilities at
amortized cost
Total
Liabilities as per statement of financial position
Accounts payable
11,203
11,203
Borrowings
568,972
568,972
CIRR Loans
20,638
20,638
Other non-current liabilities
 
12,887
12,887
Other current liabilities
26,399
26,399
Other current provision
18,092
18,092
Tax liabilities
698
698
Pension liabilities
989
989
Tax payable
 
635
635
Adjustments for liabilities that do not qualify as a financial instrument (1)
-32,790
-32,790
Total
627,723
627,723
(1) Non-financial liabilities do not qualify as a financial instrument and are not included in above amount. Excluded
 
liabilities
amount to USD 32,790 consisting of USD 698 in Tax liabilities, USD 989 in Pension Liability, USD
 
2,580 in Social Security Payable,
USD 635 in Tax payable, USD 3,398 in Unearned Income, USD 6,399 in Accrued Interest and USD
 
18,092 in provision for potential
legal claims. See Note 13 for information about Social Security Payable and Unearned Income.
Notes to the accounts
61
SIEM
Offshore
 
Inc. Annual Report 2023
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
31 December 2023
PARENT COMPANY
(Amounts in USD 1,000)
Financial assets
at amortized cost
Total
Assets as per statement of financial position
Trade and other instruments (1)
88,236
88,236
Cash and cash equivalents
42,303
42,303
Total
130,539
130,539
(1) Prepayments do not qualify as a financial instrument and are not included in above amount. Excluded prepayments
 
amount to
USD zero. See Note 9.
31 December 2023
PARENT COMPANY
(Amounts in USD 1,000)
Financial
liabilities at
amortized cost
Total
Liabilities as per statement of financial position
Accounts payable
6
6
Adjustments for liabilities that do not qualify as a financial instrument (1)
-261
-261
Other current liabilities
46,727
46,727
Total
46,472
46,472
(1) Non-financial liabilities do not qualify as a financial instrument and are not included in above amount. Excluded
 
liabilities
amount to USD 260 consisting of provisions.
31 December 2022
PARENT COMPANY
(Amounts in USD 1,000)
Financial assets
at amortized cost
Total
Assets as per statement of financial position
Trade and other instruments (1)
10,399
10,399
Cash and cash equivalents
31,394
31,394
Total
41,794
41,794
(1) Prepayments do not qualify as a financial instrument and are not included in above amount. Excluded prepayments
 
amount to
USD zero. See Note 9.
31 December 2022
PARENT COMPANY
(Amounts in USD 1,000)
Financial
liabilities at
amortized cost
Total
Liabilities as per statement of financial position
Accounts payable
63
63
Adjustments for liabilities that do not qualify as a financial instrument (1)
-1,319
-1,319
Other current liabilities
1,196
1,196
Total
-60
-60
(1) Non-financial liabilities do not qualify as a financial instrument and are not included in above amount. Excluded
 
liabilities
amount to USD 1,319 consisting of USD 466 for Accrued Interest and USD 852 for provisions.
 
 
 
 
 
 
SIEM
Offshore
 
Inc. Annual Report 2023
62
.
 
 
 
 
 
 
 
 
Note 25
Inventories
PARENT COMPANY
CONSOLIDATED
12/31/2023
12/31/2022
(Amounts in USD 1,000)
12/31/2023
12/31/2022
-
-
Fuel
2,199
3,282
-
-
Spareparts
7,876
6,439
-
-
Obsolescence provision
-4,787
-4,386
-
-
Total inventories
5,288
5,335
 
Note 26
Share-based Payments
The Company has entered into two Share option agreements with selected key employees, at 13 January
 
2013 and 2 April 2014.
 
The exercise period shall in no event be later than the date falling 10 years after the award dates.
 
The 2013 Option program
expired in 2023, the 2014 Option program expired 2 April 2024.
In 2023 and 2022, no cost was recognized under Retained earnings related to value of employee services, as
 
the vesting period
for both option programs ended in 2018 and 2019.
 
No options have been exercised since the start of the option agreements. The Company has no legal or
 
constructive obligation to
repurchase or settle the options in cash.
 
Since the share option programs were awarded, seven members of the option programs have left the Company. As per 31
December 2023, 4,000 share options are outstanding at an average exercise price of NOK 907, from the 2014 option program.
 
Options outstanding and exercise price have been adjusted for the 100:1 reverse split from 2021
 
in order to present comparable
figures.
 
 
 
 
 
 
 
 
63
SIEM
Offshore
 
Inc. Annual Report 2023
Corporate Governance
Statement of Policy on Corporate Governance
The principles for corporate governance adopted by the Company
 
are based
on the “Norwegian Recommendation for Corporate Governance”
 
issued on 14
October 2021.
As a company incorporated in the Cayman Islands, Siem
 
Offshore Inc. is an exempted company duly incorporated
under the laws of the Cayman Islands and subject to Cayman
Islands’ laws and regulations with respect to corporate
governance. Cayman Islands corporate law is to a great extent
based on English Law. In addition, due to the Company’s
listing on the Oslo Stock Exchange, certain aspects of
Norwegian Securities Law apply to the Company and there is
a requirement to adhere to the Norwegian Code of Practice for
Corporate Governance. The Norwegian Code of Practice for
Corporate Governance is publicly available at www.nues.no in
both Norwegian and English languages. Due to new provisions
implemented in the Norwegian Accounting Act, compliance
with the regulations for Corporate Governance reporting is
now a legal requirement provided that it does not conflict with
the Cayman Islands laws and regulations. The Company
endeavours to maintain high standards of corporate
governance and is committed to ensuring that all shareholders
of the Company are treated equally, and the same information
is communicated to all shareholders at the same time.
Corporate Governance is subject to annual assessment
and review by the Board of Directors.
 
The Board of Directors has reviewed this statement. It is
the opinion of the Board of Directors that the Company
complies with the Norwegian Code of Practice for Corporate
Governance.
 
This statement is structured in accordance with The
Norwegian Code of Practice for Corporate Governance.
 
Business
Cayman Islands laws and regulation do not require the objects
clause of the Companies Memorandum and Articles of
Association to be clearly defined. The Company has, however,
adopted clear objectives and strategies for its business.
 
Siem Offshore aims to grow the company within offshore
support vessels, both organically and through combination
with other operators, in order to achieve economies of scale
and a stronger presence in the market.
 
Siem Offshore aims to become a preferred supplier
of marine services to the offshore energy industry and in the
offshore renewable energy sector, based on quality and
reliability, and to provide cost-efficient solutions to its
customers by understanding their operations and by applying
high class technology and experience.
The Company builds its business around a motivated
and skilled workforce with the appropriate technical solutions.
This creates sustainable value for all shareholders. Reference
is made to the Board of Directors report for detailed
information.
Equity and Dividends
 
The priorities for the use of Company funds are determined by
the Board of Directors and with recommendations from the
Management, considering existing conditions and
arrangements. At present, priorities for the use of funds in
 
 
 
 
 
 
SIEM
Offshore
 
Inc. Annual Report 2023
64
order of importance are vessels operations and maintenance,
repayment of debt, investment opportunities in the business
and the return of capital to the shareholders in form of share
buy-back or dividends.
The Board’s mandate to increase the Company’s
share capital is limited only to the extent of the authorized
share capital of the Company with certain pre-emption rights
for shareholders and in accordance with the Company’s
Memorandum and Articles of Association which complies with
Cayman Islands Law.
 
Under the Articles of Association, the Board can
issue new shares, convertible bonds or warrants at any time
within the limits of the authorized capital without the consent
of the General Meeting, but with pre-emption rights for
shareholders. A General Meeting has further authorized the
Board to issue new shares without pre-emption rights to all
shareholders up to a limit of 50% of Siem Offshore’ shares at
the time the authorization was given. The authority gives the
Board flexibility to finance investments, acquisitions, and other
business combinations on short notice through the issue of
shares or certain other equity instruments in the Company.
Furthermore, the Board considers the granting of a new
standing authority at the time of holding an Annual General
Meeting rather than convening an Extraordinary General
Meeting at some future time to be in the best interests of the
Company, as this will result in cost savings and more effective
time management for both the Company’s senior management
and its Shareholders.
At the Annual General Meeting held on 29 April 2021
it was resolved to increase the authorized share capital of the
Company from USD15,000,000 divided into 1,500,000,000
Common Shares of par value USD 0.01 each to
USD300,000,000 divided into 30,000,000,000 Common
Shares of par value USD0.01 each, by the creation of an
additional 28,500,000,000 Common Shares of par value USD
0.01 each which shall rank pari passu in all respect with the
existing Common Shares.
On 31 May 2021 a reverse split 100:1 was
implemented. The Company’s authorized capital following the
reverse split, is USD 300,000,000 divided on 300,000,000
shares, each with a nominal value of USD 1.00. The Company
has issued 238,852,052 shares. There are 61,147,948
authorized, but unissued shares that can be issued by the
Board.
Equal Treatment of Shareholders, Freely Tradable
Shares and Transactions with Related Parties
The Company is committed to ensuring that all shareholders of
the Company are treated equally and all the issued shares in
Siem Offshore, at nominal value USD1.00 each, are freely
tradable and carry equal rights with no restrictions on voting.
Siem Sustainable Energy S.a r.l, which owns 34.86%
of the Company, is represented by its ultimate owner Siem
Industries S.A by its Chairman Kristian Siem on the Board of
Directors. The Company pays an annual fee to Siem Industries
S.A. as compensation for directorships, provision of an office
and presence in the Cayman Islands and other services. The
fee is adopted by the Annual General Meeting based on a
recommendation from the independent Board Members.
Related party transactions are disclosed in the notes to the
accounts.
Freely Negotiable Shares
All the shares in the Company carry equal rights and are freely
negotiable. The shares are traded according to normal market
practice and no special limitations on transactions have been
laid down in the Articles of Association.
General Meetings
The Annual General Meeting of the Company will be held at in
Oslo, Norway on 7 May 2024, at 13:00 CEST local time and
Shareholders can be represented by proxy. Notices of general
meetings and related documents are made available to
shareholders at the latest 17 days prior to meeting date. Notice
of attendance by proxy is to be provided to the offices of Siem
Offshore AS at Nodeviga 14, P.O. Box 425, Kristiansand 4664,
Norway, email: info@siemoffshore.com, not less than 24 hours
prior to the stated time of the Annual General Meeting.
Shareholders are given the opportunity to vote on the election
of board members.
Nomination Committee
The appointment of a nomination committee is not a
requirement under Cayman Islands Law. However, the Board
did in 2021 appoint a Nomination Committee, represented by
three Board members.
Board of Directors; Composition and
Independence
In the nominations to the Board of Directors, the Board
consults with the Company’s major shareholders and ensures
that the Board is constituted by Directors with the necessary
expertise and capacity. There is no requirement under
 
 
 
 
 
65
SIEM
Offshore
 
Inc. Annual Report 2023
Cayman Islands Law for the Company to establish a corporate
assembly.
Each Board member is elected for a term of two
years, or such shorter term as shall be specified in the ordinary
resolution pursuant to which the Director shall be appointed.
Representatives of the Executive Management are not
members of the Company’s Board of Directors.
The Board of Directors as a group has extensive
experience in areas which are important to Siem Offshore,
including offshore services, international shipping, ship
broking, finance and corporate governance and restructuring.
Work of the Board of Directors
The Board monitors the performance of management
through regular meetings and reporting. The Company has a
Compensation Committee, a Nomination Committee,
 
and an
Audit Committee.
The Compensation Committee consists of three Directors.
The mandate of the committee is to review and approve the
compensation of the CEO and any bonuses to all executive
personnel. Reference is also made to Note 17 to the Accounts,
Remuneration of the Executive Management.
 
The Nomination Committee consists of two Directors. The
Nomination Committee shall actively be seeking and
evaluating individuals qualified to become Directors of the
Company and nominate candidates to the Board of Directors.
The Audit Committee consists of two Directors. The
composition of the committee meets the requirements of the
Norwegian Code of Practice for Corporate Governance as
regards independence. The committee’s mandate can be
summarized as follows:
 
●
Ascertain that the internal and external accounting reporting
process are organized appropriately and carried out
efficiently and are of high professional quality.
●
Monitor and assess the quality of the statutory audit of the
Company’s financial statements.
●
Ensure the independence of the external auditor, including
any additional services provided by the external auditor.
Risk Management and Internal Control
Internal control
A prerequisite for the Company’s system of decentralized
responsibility is that the activities in every part of the Company
meet general financial and non-financial requirements and are
carried out in accordance with the Company’s common norms
and values. The executive management of each subsidiary is
responsible for risk management and internal control in the
subsidiary with a view to ensuring 1) optimizing of business
opportunities, 2) targeted, safe, high-quality and cost-
effective operations, 3) reliable financial reporting, 4)
compliance with current legislation and regulations and 5)
operations in accordance with the Company’s governing
documents, including ethical, environmental and social
responsibility standards. The Company’s risk management
system is fundamental to the achievement of these goals.
Financial reporting process
The Company prepares and presents its financial statements
in accordance with current IAS/IFRS rules. Financial
information from subsidiaries is received each month in a
reporting package in standard format accommodated
necessary information for preparing the consolidated financial
statement for the Company. The reporting from the
subsidiaries is extended at the year-end reporting process to
meet various requirements for supplementary information.
There are established routines to check the financial data in
the received reporting packages to ensure the best quality for
the consolidated figures for the Company.
Training and further development of accounting
experience within the Company is provided locally by
participating on various external courses on a regular basis.
Remuneration of the Board of Directors
The remuneration of the Board members reflects their
experience and responsibilities and is adopted by the Annual
General Meeting based on the recommendation from the
Board. The Board members do not have share options or
profit-based remuneration.
The responsibility statement of the Board of Directors
in this report and the notes to the accounts include information
about the remuneration of the Board of Directors.
Remuneration of the Executive Management
 
The Company has a Compensation Committee, which reviews
and approves the compensation of the CEO and the bonuses
to all executive personnel. The Articles of Association of the
Company permit the Board to approve the granting of share
options to employees. A long-term share option program for
eight key employees of the Company was introduced in Q1
2013. A second share option program was implemented in Q2
2014 for ten key employees of the Company. The 2013
program has expired, and no options were declared. No
options have been declared from the 2014 program that will
expire in April 2024. The remuneration of the CEO and the
 
 
 
 
SIEM
Offshore
 
Inc. Annual Report 2023
66
share option scheme are disclosed in the notes to the
accounts.
Information and Communications
The Company has a policy of treating all its shareholders and
other market participants equally, and communicates relevant
and objective information on significant developments which
impact the Company in a timely manner.
 
The Company also seeks to ensure that its
accounting and financial reporting are to the standards of our
investors, and the Company presents its financial statements
in accordance with the International Financial Reporting
Standards (IFRS). The Audit Committee of the Board of
Directors monitors the Company’s reporting on behalf of the
Board.
 
Notices to the Oslo Stock Exchange and placements
of notices and other information, including quarterly and
annual reports, can be found on the Company’s website
(www.siemoffshore.com). The financial calendar for 2024 is
presented on the Company’s website under “Investors”.
Take-overs
 
The shares in the Company are freely tradable and the Articles
of Association of the Company does not hold specific defense
mechanisms against take-over situations. In a take-over
situation, the Board of Directors will comply with relevant
legislation.
 
Auditor
The Auditor of the Company is elected at the Annual General
Meeting, which also approves its remuneration. Details of the
Company’s remuneration of the external auditor are given in
the notes to the accounts.
 
The Auditor reports to the Audit Committee twice a
year at a minimum, but more often if necessary. During the
second half of the year, the external auditor presents to the
Audit Committee his assessment of risks, internal controls, risk
areas and improvement potential in control systems and his
audit plan for the following year. The second report to the
Audit Committee is the presentation of the Year-End Audit.
The external auditor presents a summary of the audit process,
including comments on audited internal control procedures
and key issues in the financial reporting.
 
The Audit Committee also receives an annual
independence reporting from the external auditor, confirming
the external auditor’s independence with respect to the
Company, within the meaning of the Norwegian Act on
Auditing and Auditors. The confirmation also includes services
delivered to the Company other than mandatory audit.
 
 
 
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67
SIEM
Offshore
 
Inc. Annual Report 2023
Environmental, Social and Governance (ESG)
A separate ESG-report for 2023 has been published to
document Siem Offshore’s focus on Environmental, Social and
Governance (ESG), and present our development and
performance within sustainable vessel operations and related
activities as achieved throughout the year.
Our vision “To be the leading vessel provider and the most
attractive employer within our business”, together with our
values “Caring - Committed - Competitive” are the
fundaments for our daily work including setting the bar for
sustainable and environmentally friendly solutions.
The ESG-report covers following main chapters:
●
CHG Emission and Energy Management - with focus
on both the reduction in emission intensity and in
energy consumption. The Carbon Intensity Indicator
(CII) as defined by OSV-peers is the main KPI on this
matter.
●
Ecological Impact - with focus on Ballast Water
Treatment, Waste Handling and Ship Recycling.
●
Employee Health and Safety – addressing the
importance of a safe workplace for all parties.
●
Labor Practices in Supply Chain – the Norwegian
Transparency Act will require us to map and disclose
any negative impacts on human rights from our
global operations and supply chain.
●
Equality, Diversity and Inclusion – setting targets on
gender diversity, both offshore and onshore.
●
Anti-corruption, Anti-bribery and Sanction – the
Siem Offshore ‘Code of Conduct’ outlay the
importance of business compliance, listing
requirements to awareness and training for all
employees including assessment of our value chain.
The outlook for 2024 summaries these topics and sets the
scene for the new ESG-regulations and tax regimes, such as
the EU CSRD-reporting regime and EU Taxonomy. In addition,
the future EU ETS CO2 tax-regulation, already started from
2024 for shipping in general and for offshore vessels >
5000GRT from 2027, will be a game-changer in terms of focus
on energy savings and selection of fuel types.
The full ESG-report for 2023 can be found here:
 
https://www.siemoffshore.com/sustainability#Environmental
 
A revised statement related to the Norwegian Transparency
Act will be published on the Company’s website
https://www.siemoffshore.com/sustainability
 
on or about 30
June 2024.
Picture by: Mariusz Marchewk
 
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Offshore
 
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Offshore
 
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Offshore
 
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Offshore
 
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Offshore
 
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Vessels in the fleet
73
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Offshore
 
Inc. Annual Report 2023
Platform Supply Vessels (PSV)
Siem Pride
Siem Symphony
Siem Atlas
Siem Giant
Built
 
2015
2014
2013
2014
Design
 
VS 4411 DF
VS 4411 DF
STX PSV 4700
STX PSV 4700
Dp Class
 
2
2
2
2
LOA
 
89.20 m
89.20 m
 
87.90 m
87.90 m
Breadth
 
19.00 m
19.00 m
19.00 m
19.00 m
Draught
 
7.40 m
7.40 m
 
6.60m
6.60 m
Dwt
 
5,500 t
5,500 t
 
4700 T
4,700 T
Accommodation
 
28
25
34
34
Cargo Deck Area
 
825 m2
900 m2
1000 m2 usable
1000 m2 usable
Ownership
100%
100%
 
100%
100%
Anchor Handling Tug Supply Vessels (AHTS)
 
 
 
Siem Amethyst
Siem Opal
Siem Emerald
Siem Sapphire
Siem Aquamarine
Built
 
2011
2011
2009
2010
2010
Design
 
VS 491 CD
VS 491 CD
VS 491 CD
VS 491 CD
VS 491 CD
Dp Class
 
2
2
2
2
2
LOA
 
91.00 m
91.00 m
91.00 m
91.00 m
91.00 m
Breadth
 
22.00 m
22.00 m
22.00 m
22.00 m
22.00 m
Draught
 
7.95 m
7.95 m
7.95 m
7.95 m
7.95 m
Dwt
 
3800 T
3800 T
3800 T
3800 T
3800 T
Accommodation
 
60
60
60
60
60
Cargo Deck Area
 
800 m2
800 m2
800 m
2
800 m2
800 m2
BHP
 
28000
28000
28000
28000
28000
Bollard Pull
297 Te
305 Te
281 Te
301 Te
284 Te
Ownership
78,16%
78,16%
78,16%
78,16%
78,16%
Offshore Subsea Construction Vessel (OSCV) & Multipurpose
 
field & ROV Support Vessel (MRSV)
Siem Dorado
Siem Barracuda
Siem Spearfish
Siem Stingray
Built
 
2009
2013
2014
2014
Design
 
MT 6017 MK II
STX OSCV 11L
STX OSCV 03
STX OSCV 03
Dp Class
 
2
2
2
2
LOA
 
93.60 m
120.80 m
120.80 m
120.80 m
Breadth
 
19.70 m
22.00 m
23.00 m
23.00 m
Draught
 
6.30 m
6.60 m
6.60 m
6.60 m
Dwt
 
4.500 t
5.000 t
5.000 t
5.000 t
Accommodation
 
68
110
110
110
Cargo Deck Area
 
1046 m2
1300 m2
1,300 m2
1,300 m2
Crane
100 t Offshore/Subsea crane
250 t Offshore/Subsea crane
1 X 250 t AHC, 3,000 m
1 X 250 t AHC, 3,000 m
ROV Moonpool
-
7.2 X 7.2
 
7.2 X 7.2 m
7.2 X 7.2 m
Ownership
100%
100%
100%
100%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Offshore
 
Inc. Annual Report 2023
74
Siem Pilot
Siem Thiima
Built
 
2010
2016
Design
VS 485
VS 4411 DF
Dp Class
2
2
LOA
88.3 m
89.2 m
Breadth
20.00 m
19.00 m
Draught
7.19 m
7.40 m
Dwt
5000 T
5500 T
Accommodation
64
25
Cargo Deck Area
927 m
2
usable
900 m
2
Ownership
100%
100%
Siem Topaz
Siem Ruby
Siem Pearl
Avalon Sea
Built
 
2010
2010
2009
2016
Design
 
VS 491 CD
VS 490 CD
VS 491 CD
UT 782 WP
Dp Class
 
2
2
2
2
LOA
 
91.00 m
91.00 m
91.00 m
87.30 m
Breadth
 
22.00 m
22.00 m
22.00 m
20.00 m
Draught
 
7.95 m
7.95 m
7.95 m
7.09 m
Dwt
 
3800 T
3800 T
3800 T
4650 T
Accommodation
 
60
60
60
51
Cargo Deck Area
 
800 m
2
800 m
2
800 m
2
660 m
2
BHP
28000
28000
28000
15440
Bollard Pull
306 Te
310 Te
285 Te
150 Te
Ownership
78,16%
78,16%
78,16%
100%
Fast Crew & Oil Spill Recovery Vessels
Well Intervention Vessels (WIV)
Brazil – Fleet of 4 vessels
Siem Helix 1
Siem Helix 2
Type
OSRV/FCS
Built
2016
2016
Ownership
100%
Design
Salt 307 WIV
Salt 307 WIV
Dp Class
3
3
LOA
158.65 m
157.60 m
Breadth
31.00 m
31.00 m
Draught
8.50 m
8.50 m
Dwt
12500 t
12500 t
Joides Resolution
Accommodation
150
150
Type
Scientific Core Drilling Vessel (SCDV)
BHP
36000
35000
Ownership
100%
Ownership
100%
100%
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Local presence in key markets
75
SIEM
Offshore
 
Inc. Annual Report 2023
Geographical
footprint
Siem Offshore offices
●
Kristiansand (Norway)
●
Rio de Janeiro, Macaé, Aracaju (Brazil)
●
Houston (USA)
●
Perth (Australia)
●
St. John´s, Halifax (Canada)
●
Accra (Ghana)
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SIEM
Offshore
 
Inc. Annual Report 2023
76
Total employees
1,236
Vessels in operations
26
Platform Supply Vessels:
6
Subsea Vessels:
7
Anchor Handling Tug Supply Vessels:
9
Fast Crew & Oil Spill Recovery
 
Vessels:
4
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77
SIEM
Offshore
 
Inc. Annual Report 2023
Siem
 
Offshore
 
Inc.
 
at
a glance
Siem Offshore owns and
operates one of the
world’s most modern
fleets of offshore support
vessels, equipped to meet
demands from clients and
the harshest
environments.
Siem Offshore had 26 vessels in operation at year-end 2023.
 
By end March 2024, the total fleet comprised of 26 vessels,
including the following owned vessels: six Platform Supply
Vessels (PSVs), four Offshore Subsea Construction Vessels
(OSCVs), two Well-Intervention Vessels (WIVs), one Scientific
Core Drilling vessel, nine Anchor Handling, Tug and Supply
vessels (AHTS), four Fast crew and Oil Spill Recovery vessels. The
fleet provides a broad spectrum of services offered by a highly
experienced and competent crew with a strong focus on Health,
Safety, Environment and Quality within the offshore oil and gas
and the offshore renewable energy industries.
The Company’s vision is to become the leading provider and
the most attractive employer offering marine services to the
offshore energy service industry. The Company shall deliver
quality and reliable services in a timely manner by executing cost-
efficient, safe and environmentally friendly solutions developed in
active collaboration and cooperation with our clients.
Siem Offshore commenced operations with effect from 1 July
2005.
 
The Company is registered in the Cayman Islands and is
listed on the Oslo Stock Exchange (OSE Symbol: SIOFF). The
Company’s headquarter is located in Kristiansand, Norway and
additional subsidiary offices are located in Brazil, Canada,
Cayman Islands, Australia, USA and Ghana. The Company is tax
resident in Norway.
Photo: Siem Offshore
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SIEM
Offshore
 
Inc. Annual Report 2023
78
Our Values
We continuously work to make the values a
part of the daily life of the Company, in
particular in training of leaders throughout the
organization. The values are established to
support our present and future business.
Caring
We encourage team spirit and knowledge
sharing. We strive to perform our daily work
correctly, safely and without causing damage
to people, environment and equipment.
Competitive
We behave in a pro-active manner and we are
innovative in our way of thinking. Continuous
improvement is our key to success.
Committed
We are driven by integrity. We step up and
take charge to fulfil given promises.
336026
274306
254493
244843
292530
2023
2022
2021
2020
2019
Amounts in USD 1,000
Revenue
164486
103776
100585
82259
109744
2023
2022
2021
2020
2019
Amounts in USD 1,000
Operating Margin
1236
1179
1021
1042
1102
2023
2022
2021
2020
2019
Employees
 
per 31.12.2022
 
79
SIEM
Offshore
 
Inc. Annual Report 2023
Responsibility Statement
We confirm, to the best of our knowledge that the financial
statements for the period 1 January to 31 December 2023 have
been prepared in accordance with current applicable
accounting standards, and give a true and fair view of the
assets, liabilities, financial position and profit or loss of the
entity and the group taken as a whole. We also confirm that the
Board of Directors’ Report includes a true and fair review of the
development and performance of the business and the
position of the entity and the group, together with a
description of the principal risks and uncertainties facing the
entity and the group.
 
19 April 2024
Kristian Siem
 
Chairman
(Sign.)
Barry W. Ridings
Director
(Sign.)
 
Celina Midelfart
 
Director
(Sign.)
Christen Sveaas
Director
(Sign.)
 
Bernt Omdal
Chief Executive Officer
(Sign.)
 
 
 
 
 
 
 
SIEM
Offshore
 
Inc. Annual Report 2023
80
B
oard of Directors
The Company has a Board of four Directors. Members of the
Company’s management are not members of the Board,
 
but the
Company’s management does attend Board meetings.
Kristian Siem (born 1949), Chairman
 
Mr. Siem brings an extensive knowledge of the offshore oil and
gas service industry worldwide from previous senior executive
and non-executive roles combined with long-standing
experience as chairman of public companies listed in the USA,
UK and Norway. Mr. Siem is the founder of the Siem Industries
Group and has been Director and Chairman of Siem Industries
since 1982. He is also Chairman of Subsea 7 S.A. Mr. Siem has
held positions at Kvaerner ASA as CEO and director,
Transocean Inc. as Chairman and director and Norwegian
Cruise Line as Chairman. He holds a degree in Business
Economics. Mr. Siem is a Norwegian citizen.
Barry W. Ridings (born 1952), Board Member
Mr. Ridings is a retired investment banker. He spent 24 years at
Lazard Freres & Co. LLC where he was Vice Chairman of US
Investment Banking and Co-Head of its Restructuring advisory
practice. He is a Board Member of Safehold, Inc (a USbased
REIT) and Republic Airlines (a region airline and code share
partner of United, American and Delta). He is also a Board
Member for Catholic Charities of the Archdiocese of New
York. He was formerly a member of the Board of Directors
of Siem Industries, and the American Stock Exchange. Mr.
Ridings has a M.B.A. in Finance from Cornell University and a
B.A. in Religion from Colgate University. Mr. Ridings is a US
citizen.
Celina Midelfart (born 1973), Board Member
Ms. Midelfart is a private investor, owner and executive
chairman of Midelfart Capital AS. In her early career she was
the third generation CEO of the family business Midelfart AS.
She was previously a partner at Magnipartners Ltd, working
actively in the offshore drilling and LNG space. She has since
2015 held larger shareholding positions in various listed
offshore oil, service and supply companies. She is currently a
board member and 10% owner of the Swedish Consumer
Finance Bank, Avida AB, and a member of the Board of
Trustees at Oslo International School. She previously served
on the board of the world largest fish farming company, Mowi
AS, and the Swedish health and beauty care company,
Midsona AB. She holds a degree in economics and finance
from London School of Economics, and Stern School of
Business NY. Ms. Midelfart is a Norwegian citizen.
Christen Sveaas (born 1956), Board Member
Mr. Sveaas is Executive Chairman and owner of Kistefos AS, a
leading Norwegian investment company with a large and
diversified investment portfolio. He has held several board
positions including Treschow-Fritzøe AS, Stolt-Nielsen SA,
Orkla ASA, SkipsKredittforeningen AS, Vestenfjelske Bykreditt
AS, Tschudi & Eitzen Shipping AS, Scorpion Drilling Ltd.,
Southwestern Offshore Corp. and he has served as senior
advisor to EQT, Sweden. Mr. Sveaas is the Founder of the
Kistefos Museum, and a named benefactor of the Metropolitan
Museum of Art as well as a founding member of its
International Council, and member of the museum’s European
Visiting Committee.
 
Mr. Sveaas holds his Lic. Oec. HSG
degree from the University of St. Gallen, Switzerland. Mr.
Sveaas is a Norwegian citizen.
 
 
 
 
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81
SIEM
Offshore
 
Inc. Annual Report 2023
Financial Calendar 2024
Siem Offshore Inc. will release financial figures on the following dates in 2024:
Q1 2024
Wednesday 15 May
Q2 2024
Thursday 22 August
Q3 2024
Thursday 31 October
The Annual General Meeting of the Company will be held on Tuesday 7 May 2024
Photo: C. Beyssier
 
 
 
 
SIEM
Offshore
 
Inc. Annual Report 2023
82
Alternative Performance Measurement (APM) and other
definitions
The Company has identified APMs that are consistently
applied for the reporting periods. The APMs are
supplementary to the Financial Statements that are disclosed
in compliance with IFRS. The APMs are disclosed to give a
broader understanding of the operations and associated risk
of the Company.
Operating margin
- Operating margin is the net of operating
revenue and operating expenses. For 2023 operating
revenues USD 336,026 less operating expenses at USD
171,540 equals operating margin at USD 164,486. The
Company considers the operating margin to be a key number
when analyzing the fleets operating performance and the
margin that can be applied to the finance of capital
expenditures, debt service and other cash disbursements.
 
Operating margin percentage
 
– Operating Margin, % is the
nominal operating margin calculated as a percentage of
operating revenue. For 2023 the operating margin at USD
164,486 equals 49% of the operating revenue at USD 336,036.
The operating margin percentage is used to compare, period
by period, the development in relative margin from operations.
The operating margin, % is also used for comparing segments’
relative performance.
OTHER DEFINTIONS:
Contract backlog
 
- the total, nominal value of future revenues
from firm contracts, excluding optional periods. The contract
backlog is categorized per year, and reflects coming years’
operating revenues that are considered firm following
contracts agreed with clients.
Utilization
 
– vessels’ effective time on-hire relative to total
time available in the reporting period, excluding vessels time in
lay-up. The relative utilization is reflecting the time that a
vessel, or the fleet, has been on hire with clients. Zero
utilization is reported when a vessel is off-hire caused by
technical issues or when idle, awaiting employment.
Capital expenditure
– gross capital expenditure related to
tangible assets at acquisitions, upgrades, class renewals (dry-
docking) and major periodic maintenance.
Earnings per share
- Result attributable to the shareholders
divided by weighted average number of shares.
Comprehensive income per share
- Comprehensive income
for the period for the Group divided by weighted average
number of shares at the end of the reporting period.
Interest-bearing debt
- Current and long-term interest-
bearing debt.
Net interest-bearing debt
- Interest-bearing debt less cash
and cash equivalents.
 
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Offshore
 
Inc. Annual Report 2023
 
Mandatory ESEF concepts:
Name of reporting entity: Siem Offshore Inc.
Domicile of entity: Cayman Islands
Legal form of entity: Inc.
Country of incorporation: Cayman Islands
Address of entity's registered office: P.O. Box 425, N-4664 Kristiansand S, Norway
Principal place of business: Norway
Description of nature of entity's operations and principal activities: Siem Offshore Inc is an industrial investment company
within the marine sector of the oil service business.
Name of parent entity: Siem Offshore Inc.
Name of ultimate parent of group: Siem Offshore Inc.