CVR no. 60 69 88 13
ANNUAL REPORT 2025
SAFETY &
SUPPORT
AT SEA
The Annual Report was presen
ted and adopted at the Annual General Meeting of the Company on 27 April 2026.
Chairman of the meeting:
OUR BUSINESS 4
MANAGEMENT REVIEW
CEO statement 6
Business performance 8
Key figures for the consolidated group 11
SIGNATURES
Management’s statement 13
Independent auditor’s report 14
CONTENTS
FINANCIAL STATEMENTS
Statement of profit and loss 17
Statement of comprehensive income 17
Statement of financial position 18
Statement of changes in equity – Group 19
Statement of changes in equity – Parent 20
Cash flow statement 21
Notes 22
COMPANY INFORMATION 51
ESVAGT ANNUAL REPORT 2025
3
30%
Revenue 2025
Vessels on order
Total Vessels
Rescued peopleTotal employees
mDKK
1,404
3
44
149
~1,400
Customer Satisfaction
5.5 out of 6
Revenue growth
last 5 years
30%
OUR
BUSINESS
ESVAGT was established
in 1981 and today is a
leading provider of safety
and support at sea for the
offshore wind and Oil & Gas
industries.
ESVAGT’s fleet comprises of 44 modern offshore
support vessels built to the best standards and
operated by more than ~1,300 professional crew
members all trained for safe and efficient opera-
tions in harsh weather conditions.
ESVAGT offers services to offshore windfarms
mainly with Service Operation Vessels (SOVs),
and to offshore Oil & Gas companies mainlly
with Emergency Response and Resecue vessles
(ERRVs).
ESVAGT ANNUAL REPORT 2025
4
CEO statement
ESVAGT’s 2025 revenue was 1,404 million DKK, while EBITDA came in
at 447 million DKK. Both were minor declines compared to the levels
of 2024. This was largely as expected due to one-off commercial
arrangements in connection with a delayed newbuilding Service
Operation Vessel (SOV), as well as weakness in the UK Emergency
Response and Rescue Vessel (ERRV) market.
A YEAR OF IMPORTANT STRATEGIC
ACHIEVEMENTS, AND FINANCIAL
PERFORMANCE CLOSE TO 2024 LEVELS
Several important strategic milestones were achieved during
2025. This included delivering the world’s first Methanol
powered SOV to Ørsted, which demonstrated ESVAGT’s
position as an innovative industry leader. Additionally, we
acquired two SOVs, including long-term contracts from EDDA
Wind, which further cemented our position as the largest
provider of long-term SOV services.
With the addition of these 3 SOVs in end-2025 we continued
our expansion within the renewables segment and set the
stage for growth in 2026 and beyond. In addition, we still
have an ongoing newbuilding program of 3 SOVs, all being
built to long-term contracts for delivery in 2026/27.
Our ERRV business was as anticipated negatively impacted
by the UK Market, where offshore Oil and Gas activities
have declined sharply mainly in response to unfavorable
fiscal policies. 2025 was the first year since 1964 without any
exploration wells in UK. ESVAGTs two main markets Norway
and Denmark, meanwhile, saw a relatively stable performance.
Kristian Jakobsen and Søren Karas
CEOs, ESVAGT A/S
6
ESVAGT ANNUAL REPORT 2025
We remain focused on managing costs both for our ongoing
operations and for investments. We continued to invest in
the business with a CAPEX spend of more than 1,650 million
DKK in 2025.
Safety remains our top priority. We registered one LTI (Lost
Time Incident) during the year, which was regrettable, but
fortunately not a severe incident.
ESVAGT is focused on creating an attractive work envi-
ronment, and again in 2025 we were grateful to see this
recognized in our annual Employee Engagement Survey,
which reached 4.3 out of 5. Similarly, our continued emphasis
on operational excellence and customer focus was again
recognized in our annual Customer Satisfaction Survey, this
year with a score of 5.5 out of 6.
In addition to being an enabler of the green transition,
ESVAGT is focused on reducing our customers and own
environmental footprint. Delivering and establishing the
operation, class and safety procedures for the world’s first
Methanol SOV was a milestone in this regard, while other
activities included certifying the entire ESVAGT fleet for the
use of biofuels.
Looking ahead, we continue seeing robust long-term
growth in the Wind segments. Recent years have been more
challenging for offshore wind farm developers, and the
industry progress has been uneven with failed wind-auc-
tions and missed country targets, but growth has continued
and the commitment to expanding offshore wind remains
strong both for environmental and energy security reasons.
Recent key developments such as the North Seas Energy
Cooperation framework, aimed at achieving 300 gigawatts
(GW) of offshore wind capacity by 2050 and the record AR7
UK windfarm-auction provides ample of promise for the
long-term potential – notably from 2030 onwards.
In the US, the outlook remains uncertain. ESVAGT has one
SOV under construction for our Joint Venture with Crowley,
which is already committed to a long-term contract with
Siemens on the Dominion Wind Farm that is expected to be
in operation by 2026.
In 2025, ESVAGT opened a new Joint Venture in South Korea,
with the Korean Shipping Company KMC Line, reflecting
our strategy to support key customers in developing new
markets. Korea has an exciting long-term potential for
Offshore Wind.
For the ERRV markets the outlook for 2026 is improving.
Norway and Denmark are both stable to growing, with focus
on energy security driving continued interest in expanding
notably gas activities. In the UK we expect a substantially
better year, partly driven by significant attrition on the supply
side where older vessels were retired during 2025.
In summary, 2025 was a year of acceptable performance with
important strategic achievements that will help drive future
growth.
Kristian Ole Jakobsen & Søren Karas
CEOs, ESVAGT A/S
“
ESVAGT is focused on creating an
attractive work environment, and
again in 2025 we were grateful to
see this recognized in our annual
Employee Engagement Survey,
which reached 4.3 out of 5.
ESVAGT ANNUAL REPORT 2025
7
BUSINESS PERFORMANCE
ESVAGT has more than 40 years of experience as a high-quality provider
of safety and support at sea - making the sea a safe place to work.
ESVAGT ‘s operations use our fleet of efficient Service Operation Vessels
(SOVs), serving the Offshore Wind industry, and our Emergency Response
and Rescue Vessels (ERRVs), which are servicing the drilling rigs and
production platforms in the Oil and Gas sector.
EXPECTATIONS FOR 2026
ESVAGT will continue to grow long-term, supported by its
existing contract backlog including new SOVs under construc-
tion. In 2026, we expect a higher revenue of 1,450-1,650
million DKK and EBITDA of 475-575 million DKK, due to
the implementation of new vessels and the improved ERRV
trading conditions.
Wind
ESVAGT’s existing SOV fleet is primarily on long-term contracts
providing essential services to customers for the operations and
maintenance of windfarms. Two SOVs are available for short/
medium-term employment, but are both now fully subscribed
for 2026.
The market outlook for Wind remains strong. The industry
“reset” that has been seen in recent years means that there
will be less windfarms coming on stream in 2028-30 than
previously indicated, but conversely a new more realistic
investment framework is now coming into place and is likely
to help propel the industry growth from 2030-50 (meaning
SOV ordering activity from 2026/27 onwards).
The US is likely to go through a period of uncertainty, but the
long-term potential remains interesting. Meanwhile, South
Korea where ESVAGT is now ready to participate via its Joint
Venture, is continuing to put in place the foundation for a
thriving offshore wind business.
ESVAGT ANNUAL REPORT 2025
8
The staff expenses decreased by 17 million DKK in 2025
compared to 2024, mainly due to the severance payments to
the former CEO in 2024.
Despite the continued emphasis on cost control and the
reduction in staff expenses during 2025, these measures were
insufficient to offset the decline in revenue. Consequently,
EBITDA decreased by 62 million DKK compared to last year.
Although net financial items were reduced in 2025, the fiscal
year concluded with a net loss of 17 million DKK, primarily
attributable to decreased revenues and the expenses incurred
in connection with the acquisition of 2 new EDDA WIND
vessels.
While ESVAGT had strong operational performance and
achieved important strategic milestones the fiscal perfor-
mance in 2025 fell short of expectations, and the company
therefore did not achieve fully satisfactory fiscal results for
2025.
Development activities
In 2025, ESVAGT reported expenses of 1.0 million DKK
(compared to 2.3 million DKK in 2024), mainly related to IT
and digitalization initiatives.
Financial risks
A consolidated overview of the ESVAGT Groups financial risks
is included in note 27.
Oil and Gas
The broader Oil and Gas industry has fundamentally changed
in recent years, with Europe’s focus on energy security, as
well as a growing realization that fossil fuels will be required
throughout the renewable transition. As a result, we deem
the outlook for ERRV services to be solid and ESVAGT will
play our role in helping societies and our customers through
the energy transition, by ensuring that fossil energy as long
as needed can be extracted as safely and environmentally
friendly as possible.
FINANCIAL PERFORMANCE 2025
For the fiscal year 2025, ESVAGT reported total revenues of
DKK 1,404 million, with EBITDA reaching DKK 447 million. The
period concluded with a net loss of DKK 17 million and total
equity standing at DKK 2,181 million.
The revenue for 2025 decreased by 66 million DKK to 1,404
million DKK. This decline was primarily caused by ongoing
softness in the UK Emergency Response and Rescue Vessel
(ERRV) market, compounded by unfavorable macroeconomic
conditions, including lower GBP foreign exchange rates. The
Offshore Wind segment maintained stable revenue levels
throughout the year, however, results fell short of expectations
due to delays in the commissioning of new Service Operation
Vessels (SOV’s).
In 2025, ESVAGT maintained its emphasis on cost manage-
ment, successfully limiting the rise in operating expenses to
just 2 %. This increase primarily resulted from the launch of 3
new Service Operating Vessels (SOV) and ongoing inflation.
ESVAGT ANNUAL REPORT 2025
9
SUSTAINABILITY REPORT 2025
PARTNERING FOR
A LOW
-
CARBON
FUTURE OFFSHORE
CVR no. 60 69 88 13
Sustainability
Besides being an enabler of the Green Transition, ESVAGT
is constantly seeking to improve the sustainability of its
own operations. The first ever SOV capable of operating on
e-methanol was delivered in 2025 and entered service in
beginning of 2026, with a second vessel following at the end
of the year. These milestones represent important progress in
this field.
Statutory statement regarding environment,
social issues and governance in accordance
with section 99b of the Danish Financial
Statements Act
For our statutory statement regarding the environment, social
issues and governance, we refer to our Sustainability Report
for 2025.
Statutory statement regarding policy on data
ethics in accordance with section 99d of the
Danish Financial Statements Act
For our statutory statement regarding the policy on data
ethics policy can be found here.
SAVED LIVES SINCE
EARLY 1980S
ESVAGT Sustainability report 2025
149
Read our report here
ESVAGT ANNUAL REPORT 2025
10
KEY FIGURES FOR THE
CONSOLIDATED GROUP
5 YEARS KEY FIGURES
TDKK 2025 2024 2023 2022 2021
Profit and loss accounts
Net revenue 1,404,430 1,469,695 1,438,176 1,364,473 1,080,683
Profit before special items, depreciation,
amortization and financial items etc. 447,471 508,811 497,109 473,475 364,776
Net financials -152,723 -171,054 -162,025 -205,993 -87,669
Profit for the year -17,108 39,488 38,470 -16,159 150,709
Balance sheet
Total assets 7,147,647 5,914,693 5,692,386 5,514,795 5,009,039
Total equity 2,181,210 2,295,196 2,261,371 2,277,111 2,150,584
Investment in property, plant and equipment 1,650,314 418,160 500,452 502,402 670,122
Key ratios
Profit margin % 10% 14% 14% 14% 22%
Return on equity % -1% 2% 2% -1% 8%
Equity ratio % 31% 39% 40% 41% 43%
The key figures and financial ratios have been prepared on a consolidated basis. The financial ratios have been calculated in accordance with the
recommendations of the Association of Danish Financial Analysts.
New build (UK) Hull-1097 New build (EU) Hull-1102
New build (US) Hull-793
NEW BUILD VESSELS UNDER CONSTRUCTION
↑ Images for illustrative purposes only.
ESVAGT ANNUAL REPORT 2025
11
Executive Management
Board of Directors
ESVAGT ANNUAL REPORT 2025
13
ESVAGT ANNUAL REPORT 2025
14
mne30141 mne32115
CVR No 33 77 12 31
ESVAGT ANNUAL REPORT 2025
15
GROUP PARENT
TDKK Note 2025 2024 2025 2024
Net revenue 3 1,404,430 1,469,695 1,402,580 1,466,659
Other income 1,138 3,031 1,138 3,031
Other operating expenses -412,214 -403,142 -412,592 -404,950
Gross profit 993,354 1,069,584 991,126 1,064,740
Staff expenses 4 -543,741 -560,691 -541,242 -558,844
Share of profit/loss in subsidiaries 12 0 0 -12,165 -9,362
Share of profit/loss in joint ventures 24 -2,142 -82 0 0
Profit before special items, depreciation,
amortization and financial items etc. 447,471 508,811 437,719 496,534
Special items 5 -7,925 0 -7,925 0
Profit before depreciation,
amortization and financial items etc. 439,546 508,811 429,794 496,534
Amortisation, depreciation and impairment
losses 6 -303,604 -297,627 -301,730 -297,627
Profit/loss before financial items 135,942 211,184 128,064 198,907
Financial income 7 6,359 3,499 13,966 15,089
Financial expenses 8 -159,082 -174,553 -159,110 -174,673
Profit/loss before income tax -16,781 40,130 -17,080 39,323
Tax 9 -327 -642 -22 171
Profit/loss for the year -17,108 39,488 -17,102 39,494
Profit is attributable to:
Non-controlling interests 6 6 0 0
Owners of ESVAGT A/S -17,102 39,494 -17,102 39,494
GROUP PARENT
TDKK Note 2025 2024 2025 2024
Profit for the year -17,108 39,488 -17,102 39,494
Other comprehensive income
Items that may be subsequently
reclassified to profit or loss
Exchange diff. on translation of subsidiaries 1,810 -339 1,810 -339
Cash flow hedges:
Interest rate swaps -33,947 -16,997 -33,947 -16,997
Value adjustment of hedges for the year -555 -3,365 -555 -3,365
Reclassified to income statement
- revenue 2,632 1,468 2,632 1,468
- financial expenses 1,472 2,440 1,472 2,440
Other comprehensive income for the year,
net of tax -28,588 -16,793 -28,588 -16,793
Total comprehensive income for the year -45,696 22,695 -45,690 22,701
Profit is attributable to:
Non-controlling interests -6 -6 0 0
Owners of ESVAGT A/S -45,690 22,701 -45,690 22,701
Proposed distribution of profit:
Proposed dividend 0 0 68,000 0
Transferred to equity reserves 0 0 -85,102 0
Total distribution 0 0 -17,102 0
STATEMENT OF COMPREHENSIVE INCOME
Consolidated and parent company financial statements
STATEMENT OF PROFIT AND LOSS
ESVAGT ANNUAL REPORT 2025
17
Assets
GROUP PARENT
TDKK Note 2025 2024 2025 2024
Development projects 3,376 4,199 3,376 4,199
Intangible assets 10 3,376 4,199 3,376 4,199
Vessels 11 5,605,136 4,026,677 4,645,485 4,026,677
Other operating equipment and fixtures 11 4,314 6,080 4,314 6,080
Buildings on leased land 11 29,338 31,152 29,338 31,152
Prepayments for tangible assets 11 667,868 867,798 667,868 867,798
Right-of-use assets 19 213,659 226,349 213,659 226,349
Tangible assets 6,520,315 5,158,056 5,560,664 5,158,056
Investment in subsidiaries 12 0 0 892,095 16,344
Investment in joint ventures 24 52,895 106,735 0 0
Receivables from joint ventures 111,397 212,529 0 0
Investments in other entities 164,292 319,264 892,095 16,344
Total non-current assets 6,687,983 5,481,519 6,456,135 5,178,599
Bunker oil and other consumables 14 18,010 13,757 17,333 13,757
Inventories 18,010 13,757 17,333 13,757
Trade receivables 15 201,574 193,408 166,181 160,997
Receivables from parent company 6,716 9,125 6,716 9,125
Receivables from Group companies 0 0 275,391 344,538
Derivatives and interest rate swaps 26,087 56,485 26,087 56,485
Other receivables 12,656 9,402 12,647 9,396
Prepayments 17,142 12,117 16,955 12,085
Deferred tax 17 0 0 0 0
Receivables 264,175 280,537 503,977 592,626
Cash and cash equivalents 177,479 138,880 94,326 130,135
Total current assets 459,664 433,174 615,636 736,518
Total assets 7,147,647 5,914,693 7,071,771 5,915,117
Liabilities
GROUP PARENT
TDKK Note 2025 2024 2025 2024
Share capital 16 2,200 2,200 2,200 2,200
Other reserves 26,495 55,082 29,871 59,281
Retained earnings 2,152,273 2,237,666 2,148,897 2,233,467
Equity attributable to owners of ESVAGT 2,180,968 2,294,948 2,180,968 2,294,948
Non-controlling interests 242 248 0 0
Total equity 2,181,210 2,295,196 2,180,968 2,294,948
Bank and credit institutions, non current 18 4,568,175 3,293,633 4,568,175 3,293,633
Lease liabilities, non current 19 33,816 88,083 33,816 88,083
Contract liabilities, non-current 20 43,174 0 0 0
Other non current liabilities 1,900 2,140 1,900 2,140
Total non-current liabilities 4,647,065 3,383,856 4,603,891 3,383,856
Bank and credit institutions, current 18 0 0 0 0
Lease liabilities, current 19 55,799 51,067 55,799 51,067
Contract liabilities, current 20 13,910 5,998 8,387 5,998
Trade payables 102,613 77,600 99,246 77,225
Payables to Group companies 0 0 10,532 1,221
Income tax liabilities 679 638 574 553
Other payables 146,371 100,338 112,374 100,249
Total current liabilities 319,372 235,641 286,912 236,313
Total liabilities 4,966,437 3,619,497 4,890,803 3,620,169
Total equity and liabilities 7,147,647 5,914,693 7,071,771 5,915,117
Consolidated and parent company financial statements
STATEMENT OF FINANCIAL POSITION
ESVAGT ANNUAL REPORT 2025
18
GROUP
TDKK Share Capital
Reserve for Foreign
Currency Translation
Cash Flow
Hedges
Retained
Earnings Total
Non-Controlling
Interests Total Equity
Equity at 01.01.2024 2,200 -1,063 72,939 2,187,041 2,261,117 254 2,261,371
Profit for the year 0 0 0 39,494 39,494 -6 39,488
Exchange diff. on translation of subsidiaries 0 -339 0 0 -339 0 -339
Interest rate swaps 0 0 -16,997 0 -16,997 0 -16,997
Value adjustment of hedges for the year 0 0 -3,365 0 -3,365 0 -3,365
Reclassified to income statement
- revenue 0 0 1,468 0 1,468 0 1,468
- financial expenses 0 0 2,440 0 2,440 0 2,440
Total comprehensive income for the year 0 -339 -16,454 39,494 22,701 -6 22,695
Transactions with owners in their capacity as owners
Calculated value of LTIP at time of severance 0 0 0 6,647 6,647 0 6,647
Long term incentive schemes 0 0 0 4,483 4,483 0 4,483
Equity at 31.12.2024 2,200 -1,402 56,485 2,237,665 2,294,948 248 2,295,196
Profit for the year 0 0 0 -17,102 -17,102 -6 -17,108
Exchange diff. on translation of subsidiaries 0 1,810 0 0 1,810 0 1,810
Interest rate swaps 0 0 -33,947 0 -33,947 0 -33,947
Value adjustment of hedges for the year 0 0 -555 0 -555 0 -555
Reclassified to income statement
- revenue 0 0 2,632 0 2,632 0 2,632
- financial expenses 0 0 1,472 0 1,472 0 1,472
Total comprehensive income for the year 0 1,810 -30,398 -17,102 -45,690 -6 -45,696
Transactions with owners in their capacity as owners
Paid dividend 0 0 0 -72,000 -72,000 0 -72,000
Long term incentive schemes 0 0 0 3,710 3,710 0 3,710
Equity at 31.12.2025 2,200 408 26,087 2,152,273 2,180,968 242 2,181,210
Consolidated and parent company financial statements
STATEMENT OF CHANGES IN EQUITY
ESVAGT ANNUAL REPORT 2025
19
PARENT
TDKK Share Capital
Reserve for Foreign
Currency Translation
Cash Flow
Hedges
Development
Cost Reserve
Retained
Earnings Total Equity
Equity at 01.01.2024 2,200 -1,063 72,939 3,288 2,183,753 2,261,117
Profit for the year 0 0 0 911 38,583 39,494
Exchange diff. on translation of subsidiaries 0 -339 0 0 0 -339
Interest rate swaps 0 0 -16,997 0 0 -16,997
Value adjustment of hedges for the year 0 0 -3,365 0 0 -3,365
Reclassified to income statement
- revenue 0 0 1,468 0 0 1,468
- financial expenses 0 0 2,440 0 0 2,440
Total comprehensive income for the year 0 -339 -16,454 911 38,583 22,701
Transactions with owners in their capacity as owners
Calculated value of LTIP at time of severance 0 0 0 0 6,647 6,647
Long term incentive schemes 0 0 0 0 4,483 4,483
Equity at 31.12.2024 2,200 -1,402 56,485 4,199 2,233,466 2,294,948
Profit for the year 0 0 0 -823 -16,279 -17,102
Exchange diff. on translation of subsidiaries 0 1,810 0 0 0 1,810
Interest rate swaps 0 0 -33,947 0 0 -33,947
Value adjustment of hedges for the year 0 0 -555 0 0 -555
Reclassified to income statement
- revenue 0 0 2,632 0 0 2,632
- financial expenses 0 0 1,472 0 0 1,472
Total comprehensive income for the year 0 1,810 -30,398 -823 -16,279 -45,690
Transactions with owners in their capacity as owners
Paid dividend 0 0 0 0 -72,000 -72,000
Long term incentive schemes 0 0 0 0 3,710 3,710
Equity at 31.12.2025 2,200 408 26,087 3,376 2,148,897 2,180,968
Consolidated and parent company financial statements
STATEMENT OF CHANGES IN EQUITY
ESVAGT ANNUAL REPORT 2025
20
GROUP PARENT
TDKK Note 2025 2024 2025 2024
Profit before depreciation, amortisation and
financial items etc. 439,546 508,811 429,794 496,534
Other expenses -289 -1,522 -289 -1,522
Longterm incentive schemes 3,710 4,483 3,710 4,483
Severance pay 0 6,647 0 6,647
Adjustment for non-cash transactions 0 0 0 0
Change in working capital 26 55,423 34,921 31,651 7,824
Share of profit/loss in subsidiaries 0 0 12,165 9,362
Share of profit/loss in joint ventures 2,142 82 0 0
Cash flows from operating activities before
financial income and expenses 500,532 553,422 477,031 523,328
Financial income received 6,359 3,499 13,966 15,089
Financial expenses paid -170,987 -191,798 -170,987 -191,943
Income taxes paid 0 -76 0 0
Net cash flow from operating activities 335,904 365,047 320,011 346,474
GROUP PARENT
TDKK Note 2025 2024 2025 2024
Share capital paid in subsidiaries 0 0 -875,751 0
Payments for intangible assets and property,
plant and equipment -1,587,793 -397,595 -665,180 -397,595
Sale of intangible assets and property, plant
and equipment 289 1,522 289 1,522
Share capital in joint ventures 53,840 -42,520 0 0
Loan to subsidiaries 0 0 31,129 -83,212
Loan to joint ventures 77.620 -84,704 0 0
Net cash flow from investing activities -1,456,044 -523,297 -1,509,513 -479,286
Proceeds from loans from credit institutions 1,291,006 210,016 1,291,006 210,016
Principle element of lease payments -53,507 -54,777 -53,507 -54,777
Paid dividend -72,000 0 -72,000 0
Cash flow from financing activities 1,165,499 155,239 1,165,499 155,239
Net cash flow for the year 45,359 -3,011 -24,003 22,427
Effects of exchange rate changes on cash and
cash equivalents -6,760 16,479 -11,805 4,593
Cash and cash equivalents, beginning of the year 138,880 125,412 130,134 103,114
Cash and cash equivalents, end of the year 177,479 138,880 94,326 130,134
Consolidated and parent company financial statements
CASH FLOW STATEMENT
ESVAGT ANNUAL REPORT 2025
21
1. Accounting policies
2. Critical accounting estimates and judgements
3. Revenue
4. Staff expenses
5. Special items
6. Amortization, depreciation and impairment losses
7. Financial income
8. Financial expenses
9. Tax
10. Intangible assets
11. Property, plant and equipment
12. Investment in subsidiaries
13. Financial assets and liabilities
14. Inventories
15. Trade receivables
16. Share capital
INDEX OF NOTES
17. Deferred tax
18. Bank and credit institutions
19. Leasing
20. Contract Liabilities
21. Fee to the statutory auditors
22. Derivative financial instruments
23. Related parties
24. Investment in joint ventures
25. Contingent liabilities
26. Cash flow statement
27. Financial risk management
28. Events after the balance sheet date
29. Composition of the group
ESVAGT ANNUAL REPORT 2025
22
The Annual Report for the period 1 January - 31 December 2025 comprise the consolidated financial statement of the
parent company ESVAGT A/S and subsidiaries controlled by the parent company (the group) and the separate finan-
cial statements of the parent company and have been prepared in accordance with the IFRS Accounting Standards
as adopted by the EU and further requirements in the Danish Financial Statements Act. The annual report has been
approved by the Board of Directors at its meeting on 27 April 2026.
The annual report will be presented to the shareholders of ESVAGT A/S for approval at the annual General Meeting.
Measurement basis
The consolidated and separate financial statements have been prepared on the historical cost basis except for deriva-
tive financial instruments which are measured at fair value.
New and amended standards adopted by the group
No amendments that apply for the first time in 2025 have a material impact on amounts recognized in current and
prior periods. The group has not early adopted any standard, interpretation or amendment that has been issued but is
not yet effective.
New standards and interpretations not yet adopted
Certain new accounting standard and interpretations have been published that are not mandatory for 31 December
2025 reporting periods and have not been early adopted by the group. These standards are not expected to have a
material impact on the group in the current or future periods and on foreseeable transactions.
IFRS 18 includes requirements for the presentation and disclosure of information in financial statements, and will be
effective from January 1, 2027.
The statement of profit or loss will be presented into five categories, operating, investing, financing, income tax and
discontinued operations categories based on an assessment of the Group’s business activities. The standard also
includes requirements related to aggregation and disaggregation of information in the primary financial statements
and notes. Further, IFRS 18 requires the Group to identify its management defined performance measures (MPM) as
detailed disclosures need to be included in the notes for them.
This should enable users of consolidated financial statements to understand the aspect of financial performance that
in management’s view is communicated by an MPM and how the MPM compares with measures defined by IFRS
Accounting Standards. The Group is assessing the impact of IFRS 18.”
Basis of consolidation
Subsidiaries are all entities over which the group has control. The group controls an entity when the group is exposed
to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns
through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which
control is transferred to the group. They are deconsolidated from the date that control ceases.
Consolidation is performed by summarizing the financial statements of the parent company and its subsidiaries which
have been prepared in accordance with ESVAGT A/S accounting policies. On consolidation, elimination is made of
intra-group income and costs, shareholdings, intra-group balances and dividend and realized and unrealized profits or
losses on transactions between the consolidated companies.
Non-controlling interests’ share of profit/loss for the year and of equity in subsidiaries are included as part of ESVAGT
A/S profit and equity respectively but shown as separate items.
Asset aquisitions
Asset acquisitions are accounted at cost of the transaction, measured as the fair value of the consideration transferred.
The consideration transferred is allocated to the identifiable assets acquired and liabilities assumed, measured at
fair value at the acquisition date. Vessels acquired are recognised at fair value and depreciated over their estimated
useful lives. Long-term service contracts assumed as part of the acquisition are assessed separately; any unfavourable
elements are recognised as a contract liability and amortised to revenue over the expected contract period.
No Goodwill is recognized in asset acquisitions. Any excess consideration transferred over the fair value of the net
assets acquired is allocated to the identifiable assets based on their relative fair values.
Foreign currency translation
Functional and presentation currency
Items in the financial statements of each of the reporting companies of the Group are measured in the currency of the
primary economic environment in which the company operates (the functional currency).
The functional currency of the Parent company, ESVAGT A/S is DKK.
The financial statements are presented in Danish Kroner (DKK). The financial statements have been rounded to the
nearest thousand.
Note 1
ACCOUNTING POLICIES
ESVAGT ANNUAL REPORT 2025
23
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the trans-
lation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally
recognized in profit or loss.
Foreign exchange gains and losses that relate to borrowings are presented in the statement of profit or loss, within
finance costs. All other foreign exchange gains and losses are presented in the statement of profit or loss on a net basis
within other income or other expenses.
Group companies
The results and financial position of all the group entities that have a functional currency different from the presenta-
tion currency are translated into the presentation currency as follows:
a. Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance
sheet.
b. Income and expenses for each income statement are translated at average exchange rates; and
c. All resulting exchange differences are recognized in other comprehensive income.
Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of
the foreign entity and translated at the closing rate. Exchange differences arising are recognized in other comprehen-
sive income.
Derivatives
Derivatives are initially recognized at fair value on the date a derivative contract is entered and are subsequently
re-measured at their fair value. The method of recognizing the resulting gain or loss depends on whether the derivative
is designated as a hedging instrument, and if so, the nature of the item being hedged. Foreign exchange forwards are
used to hedge the currency risk related to recognized and unrecognized transactions.
The effective portion of changes in the value of derivative financial instruments designated to hedge future transac-
tions is recognized under equity until the hedged transactions are realized. At that time, the cumulated gains/losses
are transferred to the items under which the hedged transactions are recognized. The effective portion of changes in
the value of derivative financial instruments used to hedge the value of the recognized financial assets and liabilities is
recognized in the income statement together with changes in the fair value of the hedged assets or liabilities which can
be attributed to the hedging relationship. The ineffective portion of hedge transaction are recognized in the income
statement as financial income or expenses for interest and currency-based instruments.
Revenue recognition
ESVAGT provides support and services (ERRV and SOV) to the offshore industry comprising standby and emergency
response and rescue, oil spill contingency, tanker assist, rig move and supply duties. Revenue from providing services
is recognized in the accounting period in which the services are rendered. Revenue is recognized based on the actual
service provided to the end of the reporting period as a proportion of the total services to be provided because the
customer receives and uses the benefits simultaneously. This is determined based on the days spent relative to the
total number of days the contract covers. Furthermore, the group recognizes revenue for it’s long-term contracts in a
amount to which the group has a right to invoice.
Support and service contracts include multiple deliverables, such as charter, crew, fuel and services. Except for fuel,
the deliverables are integrated in the services and cannot be provided separately. The services in a charter excluding
fuel are therefore accounted for as one performance obligation. A part of the contract price is allocated to a separate
performance obligation for fuel based on its stand-alone selling price, which is directly observable.
The contracts do not contain any variable elements.
Other income
Other income comprises of other activities, e.g. property rent and gains/losses of sales of fixed assets. Other income is
recognized when the agreed service or asset is delivered, and the control has been transferred to the purchaser.
External expenses
External expenses comprise repair and maintenance, stores, vessel fuel, training and travel costs, expenses related to
marketing, administration, office expenses, bad debt etc. External expenses
Staff expenses including pensions and similar liabilities
Staff expenses comprise wages and salaries, pensions, social security costs and other staff costs to the company’s
employees.
Note 1 – continued
ACCOUNTING POLICIES
ESVAGT ANNUAL REPORT 2025
24
ESVAGT A/S has entered into pension and similar agreements with most employees. Obligations relating to defined
contribution plans are recognized in the income statement in the period in which they are earned.
Long-term incentive schemes granted to the Executive Management and other senior employees are recognised as
staff expenses and offset directly against equity as they are assessed to be equity settled programs for the company.
Special items
Special items comprise non-recurring income and expenses that are not considered to be a part of ESVAGT’s ordinary
operations or investment in future activities.
Special items in the financial statements comprise restructuring costs, transaction costs relating to acquisitions, impair-
ment costs, etc. relating to material structural, procedural or managerial reorganizations as well as any related gains or
losses on disposals.
Amortization, depreciation and impairment
Amortization, depreciation and impairment comprise amortization, depreciation and impairment of intangible assets,
property, plant and equipment and right-of-use assets.
Financial income and expenses
Financial income and expenses comprise interest income and expenses based on the effective interest rate method,
realized and non-realized capital gains/losses on transactions in foreign currency, amortization of financial assets and
liabilities etc.
Income tax and deferred tax
The income tax expense or credit for the period is the tax payable on the current period’s taxable income adjusted by
changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.
The current income tax charge is calculated based on the tax laws enacted or substantively enacted at the balance
sheet date in the countries where the Company and its subsidiaries operate and generate taxable income.
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax
regulation is subject to interpretation. It establishes provisions, where appropriate, based on amounts expected to be
paid to the tax authorities.
ESVAGT’s vessels activities are subject to the tonnage taxation scheme under which the computation of taxable income
includes an amount, calculated based on the fleet’s tonnage.
Deferred income tax is recognized on temporary differences arising between the tax bases of assets and liabilities and
their carrying amounts in the Consolidated Financial Statements. However, deferred tax liabilities are not recognized if
they arise from the initial recognition of goodwill; deferred income tax is not accounted for if it arises from the initial
recognition of an asset or liability in a transaction other than a business combination that, at the time of the transac-
tion, affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws)
that have been enacted or substantively enacted by the balance sheet date and are expected to apply when the related
deferred income tax asset is realized, or the deferred income tax liability is settled.
Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be avail-
able, against which the temporary differences can be utilized.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets
against current tax liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by
the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to
settle the balances on a net basis.
Intangible assets
Development projects
Development projects comprise costs related to specific development projects. Development projects are capitalized
when development projects imply a technical and/or operational advantage for ESVAGT and where the financial net
present value of these projects exceeds the development expenses.
Intangible assets are measured at cost less of accumulated amortization and impairment losses.
Amortization is recognized in the income statement on a straight-line basis over the useful life, which is:
• Development projects: 3 years
Tangible assets
Premises on leased land, vessels, docking costs and other operating equipment and fixtures are measured at cost less
accumulated depreciation and accumulated impairment losses.
Note 1 – continued
ACCOUNTING POLICIES
ESVAGT ANNUAL REPORT 2025
25
Cost comprise the cost of acquisition and expenses directly related to the acquisition up until the time when the
asset is ready for use. Borrowing costs from specific as well as general borrowing directly related to assets with a long
production period are attributed to costs during the period of construction.
Depreciation based on cost reduced by any residual value is calculated on a straight-line basis over the expected useful
lives of the assets, which are:
• Premises on leased land: 20-30 years
• Vessels: Up to 35 years
• Docking costs: 2.5-5 years
• Other fixtures and fittings: 3-5 years
New build vessels are depreciated over 25-35 years. Used vessels are depreciated over a shorter period based on the
vessel age upon time of purchase. Charter contracts related upgrades and other improvements are depreciated over
expected useful life of 3-5 years.
Expenses for docking of vessels are recognized when incurred in the carrying amount of vessels and depreciated over
the period until next docking.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting
period.
Gains and losses arising from disposal of tangible assets are calculated as the difference between the sales price less
sales costs and the carrying amount at the time of sale. Gains and losses are recognized in the profit and loss account
as other operating income or other operating costs.
Impairment of non-financial assets
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is
greater than its estimated recoverable amount. An impairment loss is recognized in the income statement when the
impairment is identified.
Intangible assets that have an indefinite useful life and intangible assets not yet available for use are not subject to
amortization and are tested annually for impairment. Tangible and intangible assets that are subject to amortization are
reviewed whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An
impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount.
The recoverable amount is the higher of an asset’s fair value less cost of disposal and value in use. For the purposes
of assessing impairment, assets are grouped at the lowest levels for which there are largely independent cash inflows
(cash-generating units). Prior impairment of non-financial assets (other than goodwill) are reviewed for possible
reversal at each reporting date.
Leases
Leases are recognized as a right-of-use asset and a corresponding liability at the date which the leased asset is avail-
able for use by the group.
Assets and liabilities arising from a lease are initially measured at present value of the lease payments. The lease
payments include among other fixed payments and variable lease payments that are based on an index or a rate. Lease
payments to be made under reasonably certain extension options are also included in the measurement of the liability.
Contracts may contain both lease and non-lease components. For all leases, the group has elected not to separate the
lease and non-lease components and instead accounts for these as a single component.
The lease payments are discounted using the interest rate implicit in the lease. If that rate is not readily determinable,
the incremental borrowing rate is used.
Lease payments are allocated between principal and finance cost. The finance cost is charged to the income statement
over the lease period to produce a constant periodic rate of interest on the remaining balance of the liability for each
period.
Right-of-use assets are measured at cost comprising the amount of the initial measurement of the lease liability, any
lease payments made at or before the commencement date, any initial direct costs and restoration costs.
Right-of-use assets are depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis.
Note 1 – continued
ACCOUNTING POLICIES
ESVAGT ANNUAL REPORT 2025
26
Variable lease payments that do not depend on an index or a rate and payments associated with leases with a lease
term of 12 months or less and low-value assets are recognized as an expense in the income statement, included in
other operating expenses.
Investment in subsidiaries and joint ventures
Investments in subsidiaries
Investments in subsidiaries are in the separate financial statements of the parent company recognized according to the
equity method (see below) after initially being measured at cost.
Investment in joint ventures
IFRS requires investments in joint arrangements to be classified as either joint operations or joint ventures. The classi-
fication depends on the contractual rights and obligations of each investor, rather than the legal structure of the joint
arrangement. All investments over which the group has joint control are classified as joint ventures.
Interests in joint ventures are accounted for using the equity method (see below), after initially being recognized at
cost.
Applying the equity method
Under the equity method, the investments are initially recognized at cost and adjusted thereafter to recognize the
group’s share of the post-acquisition profits or losses of the investee in profit or loss, and the group’s share of move-
ments in other comprehensive income of the investee. Dividends received or receivable from subsidiaries (separate
financial statements of ESVAGT A/S only) and joint ventures are recognized as a reduction in the carrying amount of
the investment.
Where the group’s share of losses in an equity-accounted investment equals or exceeds its interest in the entity,
including any other unsecured long-term receivables, the group does not recognize further losses, unless it has
incurred obligations or made payments on behalf of the other entity.
Unrealized gains on transactions with joint ventures are eliminated to the extent of the group’s interest in these enti-
ties. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset trans-
ferred. Accounting policies of equity-accounted investees have been changed where necessary to ensure consistency
with the policies adopted by the group.
The carrying amount of equity-accounted investments is tested for impairment in accordance with the policy described
above.
Inventories
Inventories comprise of bunkers and other consumables. Inventories are measured at cost according to the FIFO-
method. Write-down is made to a possibly lower net realizable value.
Receivables
Receivables are initially recognized at fair value adjusted for any transaction costs. Subsequently, receivables are
measured at amortized cost, which usually corresponds to the nominal value.
The group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected
loss allowance for all trade receivables and contract assets.
To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared
credit risk characteristics and the days past due. The contract assets relate to unbilled work in progress and have
substantially the same risk characteristics as the trade receivables for the same types of contracts. The group has there-
fore concluded that the expected loss rates for trade receivables are a reasonable approximation of the loss rates for
the contract assets.
The expected loss rates are based on the payment profiles of historic sales and the corresponding historical credit
losses. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic
factors affecting the ability of the customers to settle the receivables. The group has identified the GBP and the oil
and energy prices to be the most relevant factors, and accordingly adjusts the historical loss rates based on expected
changes in these factors.
Prepayments
Prepayments comprise various prepaid expenses such as prepaid insurance, subscriptions etc. Prepayments are
measured at cost.
Cash and cash equivalents
Cash and cash equivalents comprise “Cash at bank and in hand”.
Note 1 – continued
ACCOUNTING POLICIES
ESVAGT ANNUAL REPORT 2025
27
Note 1 – continued
ACCOUNTING POLICIES
Equity
Reserve for foreign currency translation
The reserve for exchange adjustments consists of exchange rate differences that occur when translating the foreign
subsidiaries financial statements from their functional currency into the Group’s presentation currency. On disposal of
the net investment, the reserve for exchange adjustments of that foreign subsidiary is recognized in the income state-
ment. Reduction of a net investment in a foreign operation which does not result in loss of control is not treated as a
disposal.
Cash flow hedges
The effective portion of changes in the value of derivative financial instruments designated to hedge future transac-
tions is recognized under equity until the hedged transactions are realized.
Dividend distribution
Dividends are recognized as a liability in the period in which they are adopted at the Annual General Meeting.
Development cost reserve
An amount equal to the total capitalized development costs after tax is recognized in equity in the Development cost
reserve.
Bank and Credit institutions
Borrowings from credit institutions are initially recognized at fair value, net of transaction expenses incurred.
Borrowings from credit institutions are subsequently measured at amortized cost. Any differences between the
proceeds and the redemption value are recognized in the income statement over the period of the borrowings using
the effective interest method.
Contract liabilities
A contract liability is recognised if a payment is received or a payment is due (whichever is earlier) from a customer
before the Group transfers the related goods or services. Contract liabilities are recognised as revenue when the Group
performs under the contract (i.e., transfers control of the related goods or services to the customer).
Prepayments received from customers
Prepayments received from customers comprise amounts received from customers prior to delivery of the goods
agreed or completion of the service agreed.
Other liabilities
Other debt or liabilities covering trade payables and other debt are recognized at amortized cost, which is usually
equivalent to the nominal value.
Statement of cash flow
The cash flow statement shows the Group’s cash flows during the year distributed on operating, investing and
financing activities, changes in cash and cash equivalents at the beginning and at the end of the year.
Cash flows from operating activities are calculated by the indirect method using the profit before depreciation adjusted
for changes in working capital and non-cash operating items such as depreciation, amortization and impairment losses,
and provisions. Working capital comprises current assets less short-term debt excluding items included in cash and
cash equivalents.
Cash flows from investing activities comprise cash flows from acquisitions and disposals of intangible assets, property,
plant and equipment as well as fixed asset investments and loans to joint ventures and subsidiaries.
Cash flows from financing activities comprise cash flows from the raising and repayment of long-term debt, payment of
principal element of leases as well as payments to and from shareholders.
Consolidated Key Figures
The key figures and financial ratios have been prepared on a consolidated basis. The financial ratios have been calcu-
lated in accordance with the recommendations of the Association of Danish Financial Analysts.
Parent company’s policy to account for mergers
Mergers between the parent company and its subsidiaries are accounted for by applying predecessor accounting.
Hereby the parent company recognizes the assets and liabilities received at their values as included in the consolidated
financial statements of the Group. Comparative figures are restated accordingly. The full-year results and cash flows of
the merged subsidiaries (including comparative figures) are included in the parent company’s income statement and
cash flow statement.
See Definitions on page 51
ESVAGT ANNUAL REPORT 2025
28
The group performs certain judgements and estimates concerning the future.
The estimates are performed based on historical experience and other factors that Management considers to be reli-
able, but which by their very nature are associated with uncertainty and unpredictability. These assumptions may prove
incomplete or incorrect, and unexpected events or circumstances may arise. The Group is also subject to risks and
uncertainties that may lead to actual results differing from these estimates, both positively and negatively.
The judgement and estimates that have a significant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next financial year are addressed below.
Judgements
Determination of cash generating units
Judgement is applied in determining the cash generating units (CGU’s). Management has based on the specific capa-
bilities of the vessels, split these into three CGU’s;
• Group 1: multi-role ERRV vessels are flexible and support the offshore oil & gas industry with a number of highly
specialized services as a supplement to the ERRV functions: Anchor handling; Rig moves; Emergency towing; Cargo
runs; ROV inspections and surveys; Barge work; Oil spill response and Fire-Fighting.
• Group 2/3: high-end fleet of ERRV vessels in Group 2 are all designed to operate worldwide and in harsh environ-
ments. They comply with all stand-by regulations in DK, UK, NL and NO. The vessels are optimized on fuel consump-
tion, capacity and size. Group 3 vessels are the pioneers of the ESVAGT fleet. They are particularly seaworthy and
completely solid. Some of the vessels have already been upgraded with a number of welfare and technical improve-
ments. They are approved to stand-by / ERRV duties in the Danish sector.
• Wind: Service Operation Vessels (SOV) are the cost-efficient choice for windfarms far from shore. The SOV offers
onboard workshop, spare parts storage, crane and office facilities. Advanced transfer of technicians and spare parts
to WTGs by ESVAGT Safe Transfer Boat or W2W gangway solutions.
This also reflect how Management monitors the operations.
Management furthermore applies its judgement in allocating assets that do not generate independent cash flows to
appropriate CGU’s.
Estimates
Useful life and residual values
The vessels are estimated to operate up to 35 years before they are taken out of the fleet. Some vessels operate longer
than that, and the depreciations are calculated individually when the useful lives and residual values are reviewed and
adjusted if appropriate, at the end of each year.
Impairment testing
Impairment testing is performed for each cash-generating unit as defined by our operational structure as described
under judgement, if indicators of impairment exist.
For the impairment testing, a number of estimates are made regarding the expected development in day rates, utiliza-
tion of vessels, future capital expenditures, discount rates, which are all included in the projected cash flows applied for
the impairment testing.
These estimates are based on an assessment of current and future developments in the three cash-generating units
and on historical data and future assumptions. Various market insights are used by each stakeholder to estimate the
development in revenue and cost drivers for each segment and responsibility area.
The assumptions included in the value-in-use calculation are based on financial budgets and business plans approved
by management.
ESVAGTs business model proven to be resistant to the volatile macroeconomic effects and market conditions, with high
inflation, interest rates and falling GBP FX rate, despite volatile spot market rates, in especially Oil and Gas sector, it’s
shown over time to keep up with inflation. Our long-term contracts also incorporated with escalation principles linked
to relevant indexes, to cover years with higher inflation. Thereby no impairment seen in the different CGU’s and the
result of the impairment testing is further disclosed in note 11 about Property, Plant and Equipment.
Note 2
CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
ESVAGT ANNUAL REPORT 2025
29
GROUP PARENT
TDKK 2025 2024 2025 2024
Support and safety activities, offshore oil & gas (over time) 793,185 833,869 790,376 830,834
Support and safety activities, offshore wind (over time) 560,597 560,054 557,105 560,054
Sale of fuel, offshore oil & gas (point in time) 32,840 41,705 37,291 41,704
Sale of fuel, offshore wind (point in time) 17,808 34,067 17,808 34,067
1,404,430 1,469,695 1,402,580 1,466,659
The group has recognized the following assets and liabilities related to contracts with customers:
TDKK
31 Dec
2025
31 Dec
2024
1 Jan
2024
Group
Current contract assets relating to charters 1,239 464 329
Current contract liabilities relating to charters -13,910 -5,998 -8,587
Parent
Current contract assets relating to charters 1,239 464 329
Current contract liabilities relating to charters -8,387 -5,998 -8,587
Contract liabilities relating to charters have increased for the group, as a result of the acquisition of Mar de Grado S.L.
and Mar de Berrobi S.L.
GROUP PARENT
TDKK 2025 2024 2025 2024
Revenue recognised that was included in the contract liability
at the beginning of the period -2,389 2,589 -2,389 2,589
The group has taken the practical expedient in IFRS 15 not to disclose information about the aggregate amount of the
transaction price allocated to its remaining performance obligations, as the group’s contracts either has an original
expected duration of one year or less; or as the group for its long-term contracts recognizes revenue in an amount to
which the group has a right to invoice.
The invoicing is done on a monthly basis reflecting the contracted day rate and the actuals days per month. Normal
payment terms are running month +30 days or 45 days.
Note 3
REVENUE
Note 4
STAFF EXPENSES
GROUP PARENT
TDKK 2025 2024 2025 2024
Wages and salaries 497,852 510,403 495,432 508,602
Pensions, defined contribution plans 28,330 27,898 28,265 27,871
Other staff costs 13,849 11,260 13,835 11,241
Calculated value of LTIP at time of severance 0 6,647 0 6,647
Long term incentive schemes 3,710 4,483 3,710 4,483
Staff Expenses 543,741 560,691 541,242 558,844
Average number of full-time employees 1,079 1,064 1,076 1,062
ESVAGT ANNUAL REPORT 2025
30
Management Compensation
The Executive Management compensation for 2024 was significantly impacted by the exit of the former CEO.
Management compensation includes remunerated members of Board of Directors and Executive Management in
ESVAGT A/S, comprising a total of 6 persons at year-end 2025 (6 in 2024). Compensation includes salaries, pensions,
one-off payments, calculated value of LTIP at time of severance and long-term incentive schemes (LTIP).
Long term incentive schemes
The Executive Management and other senior employees of ESVAGT A/S participate in two long-term incentive schemes
(LTIP), consisting of a share-based award scheme and a cash-settled bonus plan. The schemes are structured according
to the same principles but are triggered by mutually exclusive exit events. Participants may only receive payment under
one of the schemes upon vesting.
The LTIP schemes are awarded by the parent company ERRV Holdings ApS, but recognized in ESVAGT A/S as both LTIP
schemes are subject to conditions, requiring continued employment, and market-based vesting conditions linked to an
exit of the current owners of ESVAGT A/S. The schemes are linked to the development in the fair value of the company.
The maximum aggregate potential payout under the schemes amounts to DKK 112 million (EUR 15 million).
For financial reporting purposes, the fair value of the granted LTIP awards has been estimated at DKK 42 million at
grant date in January 2023. The LTIP schemes are accounted for in accordance with IFRS 2 Share-based Payment, as
the arrangements are based on the equity value of the Group, and are recognized as staff expenses over the expected
vesting period of 9 years, with a corresponding credit to equity. In 2025, an expense of DKK 3.7 million has been
recognized in the income statement. The exercise price of the awards is DKK 0. The measurement of the LTIP schemes
involves management judgment and estimates, including assumptions regarding exit timing, valuation and probability
of vesting. The compensation paid or payables to key management for employee services is shown below:
Note 4 – continued
STAFF EXPENSES
TDKK
Executive
Management
Board of
Directors Total
2025 Group
Wages and salaries 10,381 2,315 12,696
Pensions, defined contribution plans 580 0 580
Long term incentive schemes 1,576 0 1,576
Compensation to the Board of Directors and Executive Management 12,537 2,315 14,852
2025 Parent
Wages and salaries 10,381 2,315 12,696
Pensions, defined contribution plans 580 0 580
Long term incentive schemes 1,576 0 1,576
Compensation to the Board of Directors and Executive Management 12,537 2,315 14,852
2024 Group
Wages and salaries 18,621 2,127 20,748
Pensions, defined contribution plans 312 0 312
Calculated value of LTIP at time of severance
6,647 0 6,647
Long term incentive schemes 1,693 0 1,693
Compensation to the Board of Directors and Executive Management 27,273 2,127 29,400
2024 Parent
Wages and salaries 18,621 2,127 20,748
Pensions, defined contribution plans 312 0 312
Calculated value of LTIP at time of severance 6,647 0 6,647
Long term incentive schemes 1,693 0 1,693
Compensation to the Board of Directors and Executive Management 27,273 2,127 29,400
ESVAGT ANNUAL REPORT 2025
31
Note 7
FINANCIAL INCOME
GROUP PARENT
TDKK 2025 2024 2025 2024
Interest income from parent 314 359 314 359
Interest income from subsidiaries 0 0 10,521 11,590
Interest income, bank 4,825 3,140 3,131 3,140
Exchange rate adjustments 0 0 0 0
Other financial Income 1,220 0 0 0
6,359 3,499 13,966 15,089
Total interest income on financial assets that are measured at amortized cost for the year was TDKK 6,359 (2024: TDKK
3,499) for the Group and TDKK 13,966 (2024: TDKK 15,089) for the parent company.
Note 8
FINANCIAL EXPENSES
GROUP PARENT
TDKK 2025 2024 2025 2024
Interest expenses to subsidaires 0 0 212 122
Interest expenses, credit institutions 180,536 165,810 180,536 165,855
Interest expenses, leases 10,390 14,537 10,390 14,537
Exchange rate adjustments 6,771 20,167 6,611 20,141
Other financial expenses, including bank fees 235 215 211 194
Capitalized interests -38,850 -26,176 -38,850 -26,176
159,082 174,553 159,110 174,673
Total interest expenses on financial liabilities not measured at fair value through profit or loss for the year was TDKK
180,926 (2024: TDKK 180,347) for the group and TDKK 180,926 (2024: TDKK 180,392) for the parent company.
Note 5
SPECIAL ITEMS
GROUP PARENT
TDKK 2025 2024 2025 2024
Acqusition-related transaction costs 7,925 0 7,925 0
7,925 0 7,925 0
Special items comprise non-recurring expenses that are not considered to be part of the Group’s ordinary operations
such as acquisition-related transaction costs.
In the classification of Special items, judgment is applied in ensuring that only exceptional items not associated with
the ordinary operations of the Group are included.
Transaction costs would have been presented as other operating expenses if not presented as special items.
Note 6
AMORTIZATION AND DEPRECIATION
GROUP PARENT
TDKK 2025 2024 2025 2024
Amortisation of intangible assets 1,827 3,111 1,827 3,111
Depreciation of tangible assets 274,500 270,699 272,626 270,699
Depreciation of right-of-use assets 27,277 23,817 27,277 23,817
303,604 297,627 301,730 297,627
ESVAGT ANNUAL REPORT 2025
32
GROUP PARENT
TDKK 2025 2024 2025 2024
Income tax:
Tax on profit/loss for the year -228 89 -533 -724
Total income tax -228 89 -533 -724
Tonnage tax 555 553 555 553
Total tax for the year 327 642 22 -171
Tax on profit/loss for the year can be broken down as follows:
Current tax 761 446 0 0
Deferred tax 0 367 0 0
Adjustments for current tax of prior periods -533 -724 -533 -724
Tax on profit/loss for the year -228 89 -533 -724
Income tax is specified as follows:
Calculated 22% tax on "Profit for the year
before income tax" 3,692 -8,829 3,758 -8,651
Tax effects of:
Income tax under tonnage taxation -4,247 9,382 -4,313 9,204
Adjustments in respect of prior years -533 -724 -533 -724
-228 89 -533 -724
Effective tax rate 1.3% -0.2% 3.1% 1.8%
The majority of the Group’s taxable income is located in Denmark, and therefore the majority of the tax base is subject
to Danish tax legislation. As such, the ESVAGT Group has elected to participate in the Danish Tonnage Tax scheme; the
participation is binding until 31 December 2031.
There is no tax related to other comprehensive income.
GROUP PARENT
TDKK
Development
Projects
Development
Projects
Cost:
At 01.01.2024 22,032 22,032
Additions during the year 2,257 2,257
Disposals -864 -864
Reclassifications 1,766 1,766
At 31.12.2024 25,191 25,191
Amortisation and impairment:
At 01.01.2024 18,745 18,745
Amortisation charge 3,111 3,111
Disposals -864 -864
At 31.12.2024 20,992 20,992
Carrying amount 31.12.2024 4,199 4,199
Cost:
At 01.01.2025 25,191 25,191
Additions during the year 1,020 1,020
Disposals -3,721 -3,721
Reclassifications 0 0
At 31.12.2025 22,490 22,490
Amortisation and impairment:
At 01.01.2025 20,992 20,992
Amortisation charge 1,827 1,827
Disposals -3,705 -3,705
At 31.12.2025 19,113 19,113
Carrying amount 31.12.2025 3,376 3,376
Note 9
TAX
Note 10
INTANGIBLE ASSETS
ESVAGT ANNUAL REPORT 2025
33
GROUP
TDKK Vessels
Operating
Equipment
& Fixtures Buildings
Prepay-
ments Total
Cost:
At 01.01.2024 6,848,598 40,105 62,729 609,496 7,560,928
Adjustment to prior year 830 0 0 0 830
Additions during the year 132,049 1,859 187 284,065 418,160
Disposals -35,391 -10,115 0 0 -45,506
Reclasssifications 24,304 1,458 0 -25,762 0
At 31.12.2024 6,970,390 33,307 62,916 867,799 7,934,412
Depreciation and impairment:
At 01.01.2024 2,709,876 34,718 29,981 1 2,774,576
Adjustment to prior year 830 0 0 0 830
Disposals -33,284 -10,115 0 0 -43,399
Depreciation 266,291 2,625 1,783 0 270,699
Reclassifications 0 -1 0 0 -1
At 31.12.2024 2,943,713 27,227 31,764 1 3,002,705
Carrying amount 31.12.2024 4,026,677 6,080 31,152 867,798 4,931,707
The amount of borrowing costs capitalized during 2024 was TDKK 26,176. The rate used to determine the amount of
borrowing cost eligible for capitalization was 4.00%
GROUP
TDKK Vessels
Operating
Equipment
& Fixtures Buildings
Prepay-
ments Total
Cost:
At 01.01.2025 6,970,390 33,309 62,917 867,798 7,934,414
Adjustment to prior year 0 0 0 0 0
Additions during the year 1,054,697 1,378 0 594,239 1,650,314
Disposals -40,224 -5,725 -531 0 -46,480
Reclasssifications 794,169 0 0 -794,169 0
At 31.12.2025 8,779,032 28,962 62,386 667,868 9,538,248
Depreciation and impairment:
At 01.01.2025 2,943,713 27,229 31,765 0 3,002,707
Adjustment to prior year 0 0 0 0 0
Disposals -39,399 -5,725 -491 0 -45,615
Depreciation 269,582 3,144 1,774 0 274,500
Reclassifications 0 0 0 0 0
At 31.12.2025 3,173,896 24,648 33,048 0 3,231,592
Carrying amount 31.12.2025 5,605,136 4,314 29,338 667,868 6,306,656
The amount of borrowing costs capitalized during 2025 was TDKK 38,850. The rate used to determine the amount of
borrowing cost eligible for capitalization was 4.26%
Commitments for tangible assets
ESVAGT has two vessels for delivery in 2026/2027.
GROUP PARENT
TDKK 2025 2024 2025 2024
Remaining Commitments, new building program 543,000 929,000 543,000 929,000
543,000 929,000 543,000 929,000
Note 11
PROPERTY, PLANT AND EQUIPMENT
ESVAGT ANNUAL REPORT 2025
34
PARENT
TDKK Vessels
Operating
Equipment
& Fixtures Buildings
Prepay-
ments Total
Cost:
At 01.01.2024 6,848,598 40,105 62,729 609,496 7,560,928
Adjustment to prior year 830 0 0 0 830
Additions during the year 132,049 1,859 187 284,065 418,160
Disposals -35,391 -10,115 0 0 -45,506
Reclasssifications 24,304 1,458 0 -25,762 0
At 31.12.2024 6,970,390 33,307 62,916 867,799 7,934,412
Depreciation and impairment:
At 01.01.2024 2,709,876 34,718 29,981 1 2,774,576
Adjustment to prior year 830 0 0 0 830
Disposals -33,284 -10,115 0 0 -43,399
Depreciation 266,291 2,625 1,783 0 270,699
Reclassifications 0 -1 0 0 -1
At 31.12.2024 2,943,713 27,227 31,764 1 3,002,705
Carrying amount 31.12.2024 4,026,677 6,080 31,152 867,798 4,931,707
The amount of borrowing costs capitalized during 2024 was TDKK 26,176. The rate used to determine the amount of
borrowing cost eligible for capitalization was 4.00%
PARENT
TDKK Vessels
Operating
Equipment
& Fixtures Buildings
Prepay-
ments Total
Cost:
At 01.01.2025 6,970,390 33,309 62,917 867,798 7,934,414
Adjustment to prior year 0 0 0 0 0
Additions during the year 93,172 1,378 0 594,239 688,789
Disposals -40,224 -5,725 -531 0 -46,480
Reclasssifications 794,169 0 0 -794,169 0
At 31.12.2025 7,817,507 28,962 62,386 667,868 8,576,723
Depreciation and impairment:
At 01.01.2025 2,943,713 27,229 31,765 0 3,002,707
Adjustment to prior year 0 0 0 0 0
Disposals -39,399 -5,725 -491 0 -45,615
Depreciation 267,708 3,144 1,774 0 272,626
Reclassifications 0 0 0 0 0
At 31.12.2025 3,172,022 24,648 33,048 0 3,229,718
Carrying amount 31.12.2025 4,645,485 4,314 29,338 667,868 5,347,005
The amount of borrowing costs capitalized during 2025 was TDKK 38,850. The rate used to determine the amount of
borrowing cost eligible for capitalization was 4.26%
Commitments for tangible assets
ESVAGT has two vessels for delivery in 2026/2027.
GROUP PARENT
TDKK 2025 2024 2025 2024
Remaining Commitments, new building program 543,000 929,000 543,000 929,000
543,000 929,000 543,000 929,000
Note 11 – continued
PROPERTY, PLANT AND EQUIPMENT
ESVAGT ANNUAL REPORT 2025
35
Impairment analysis
ESVAGT is still affected by the high and volatile inflation and interest rates, due to the uncertain geopolitical and energy
supply situation. On the other hand, this also impact the offshore Wind Oil & Gas industry with increasing demand
and day rates. This uplift derived from many countries securing alternative and independent energy sources and the
continuing ambitions for green energy transition.
ESVAGT’s business model shown to be quite robust towards the volatile macroeconomic effects and market conditions
by always utilizing the fleet efficient and optimal, while keeping cost in control and at its minimum. ESVAGT thereby
consistently been able to show positive financial results, by delivering high service and performance from its existing
ERRV and SOV fleet. This is still done along with continuation of the overall growth plan within the fast-growing
offshore wind segment.
Outcome of the impairment test
The drivers behind ESVAGT’s short- and long-term budget are affecting the Impairment both negatively and positively.
However, the some of the main macro drivers impacted negatively, as GBP decreased 4,7% and WACC increased by
~0,6% p.p. in both segments as the risk-free rate increased over the year, which increased the cost of debt in the WACC
calculation. The headroom nearly disappeared for our most challenged CGU, G2/3, and headroom in our Wind/SOV
CGU also dropped significantly, due to new vessels taken in the test. Overall, the impairment test still shows positive
headroom in all CGU’s and thereby no impairment loss to be recognized in 2025.
Basis for impairment test
ESVAGT considers vessels with similar functionality as cash generating units (CGU) due to largely interdependent cash
flows. The recoverable amount for each CGU is determined as the present value of future net cash flow from each or
fair value less cost to sell if higher. ESVAGT applies value-in-use calculations in the Impairment Analysis.
The value-in-use is calculated based on cash flow projections in financial forecasted budgets, based on management
long term key assumptions and market expectations. Thereby an expected inflation rate of 2.5% (2024: 2.5%) p.a. is
applied after 2026 and onwards together with individual day-rate and utilization assumptions post-contract for each
vessel. These cash flow projections are subject to judgement and estimates that are uncertain, though based on expe-
rience and external sources where available. Below the different sensitivity analysis for certain key assumptions applied
in the expected future cash flows.
The discount rate applied in the value-in-use calculation is 7.00% (2024: 6.40%) for ERRV segment and 6.50% (2024:
5.90%) for WIND segment p.a. after tax. The discount rate applied reflects the specific risks relating to the relevant
CGU’s.
The FX rates applied is based on the FX rate level on 31 December 2025:
• GBP: 857.31 (2024: 899.34)
• NOK: 63.16 (2024: 62.98)
• EUR: 746.89 (2024: 746.00)
• USD: 635.27 (2024: 714.29)
Sensitivity analysis
The value-in-use calculations for the individual CGU’s are particularly sensitive to the day rates expected post-contract
and to utilization of ERRV spot activities. In addition, discount rate, inflation rate and changes in FX rates are critical
assumptions. Especially the headroom in CGU ERRV G2/G3 being challenged last couple of years and the result of
sensitivity tests listed below for the CGU.
The headroom between the recoverable amount and the carrying amount for the CGU ERRV G2/G3 is DKK 9 million in
2025 (2024: DKK 64 million) and the sensitivity analysis for the unit shows that the headroom would have been:
• A +/- 0.5 percentage point change in the WACC, keeping all other assumptions unchanged, results in a DKK -14
million and DKK 33 million spread.
• A -/+ 5 percentage point change in the Market spot rate, keeping all other assumptions unchanged, results in a DKK
-119 million and DKK 138 million spread.
• A -/+ 0.5 percentage point change in the long-term inflation rate, keeping all other assumptions unchanged, results
in DKK -50 million and DKK 71 million spread.
• A -/+ 1 percentage point change in the GBP and NOK FX rate, keeping all other assumptions unchanged, results in a
DKK -23 million and DKK 41 million spread.
The above sensitivity test shows a potential risk for negative headroom in all negative scenarios, which is a typical
result when headroom close to zero. The biggest risk and effect shown, like prior years, to be on falling market spot
rates. This is currently not a likely scenario as available tonnage is decreasing and closer to the actual increasing
demand in the oil and gas sector which will drive prices up.
Note 11 – continued
PROPERTY, PLANT AND EQUIPMENT
ESVAGT ANNUAL REPORT 2025
36
Note 12
INVESTMENT IN SUBSIDIARIES
PARENT
TDKK 2025 2024
Cost:
At 01.01. 481 481
Additions 878,018 0
Disposals 0 0
At 31.12. 878,499 481
Accumulated revaluation 01.01. -3,492 5,380
Profit/loss for the year -12,079 -9,362
Currency adjustment 1,507 490
Accumulated revaluation 31.12. -14,064 -3,492
Transfer of negative shares 27,442 19,355
Carrying amount 31.12. 891,877 16,344
Name of Entity:
Ownership and
Voting Rights
held by ESVAGT Share Capital
Place of Business/
Incorporation
Investments in subsidiaries
ESVAGT Holdings Limited 100% 10 TBGP Great Britain
ESVAGT UK Limited (daughter-daughter) 100% 10 TGBP Great Britain
ESVAGT Norge AS 100% 100 TNOK Norway
ESVAGT Holdings Inc 100% 2 TUSD United States
ESVAGT Korea ApS 100% 20 TDKK Denmark
Mar de Grado S.L. 100% 201 TEUR Spain
Mar de Berrobi S.L. 100% 201 TEUR Spain
P/F ESVAGT-THOR 51% 500 TDKK Faroe Islands
Investments in Joint Ventures
Crowley SOV I, LLC* 25% 1 TUSD United States
* (daughter of ESVAGT Holding Inc.)
ESVAGT ANNUAL REPORT 2025
37
GROUP PARENT
TDKK 2025 2024 2025 2024
Trade receivables at 31 December 208,924 196,253 173,530 163,842
Expected credit loss -7,349 -2,845 -7,349 -2,845
Trade receivables net 201,575 193,408 166,181 160,997
The maturity of the trade receivables is specified as follows:
Not overdue 142,240 129,492 126,563 109,045
Up to 30 days 48,022 52,197 39,471 46,943
Between 31 and 90 days 4,544 8,979 147 5,009
Between 91 and 365 days 6,769 2,740 0 0
Total 201,575 193,408 166,181 160,997
Note 14
INVENTORIES
GROUP PARENT
TDKK 2025 2024 2025 2024
Bunker oil 18,010 13,757 17,333 13,757
18,010 13,757 17,333 13,757
During 2025 TDKK 80,482 (2024: TDKK 100,945) was recognized as an expense for the group, and TDKK 80,482 (2024:
TDKK 100,945) for the parent company.
Note 15
TRADE RECEIVABLES
GROUP PARENT
TDKK 2025 2024 2025 2024
Carrying Amount
Financial assets:
Financial assets at fair value
Interest rate swap 26,048 59,995 26,048 59,995
Foreign currency forwards (used for hedging) 39 0 39 0
Total financial assets at fair value 26,087 59,995 26,087 59,995
Financial assets at amortised cost:
Trade receivables 201,574 193,408 166,181 160,997
Receivables from parent company 6,716 9,125 6,716 9,125
Receivables from Group companies 0 0 268,036 344,538
Receivables from joint ventures 111,397 212,529 0 0
Other Receivables 12,656 9,402 12,647 9,396
Cash and cash equivalents 177,479 138,880 94,326 130,135
Total Financial assets at amortised cost 509,822 563,344 547,906 654,191
Total Financial assets 535,870 623,339 573,993 714,186
Financial liabilities:
Financial liabilities at fair value
Foreign currency forwards (used for hedging) 0 3,510 0 3,510
Total financial liabilities at fair value 0 3,510 0 3,510
Financial liabilities at amortised cost:
Borrowings 4,568,175 3,293,633 4,568,175 3,293,633
Trade payables 102,613 77,600 99,246 77,225
Payables to Group companies 0 0 10,532 1,221
Lease liabilities 89,615 139,150 89,615 139,150
Contract liabilities 57,084 5,998 8,387 5,998
Other Payables 146,371 100,337 112,374 100,249
Total Financial liabilities at amortised cost 4,963,858 3,616,718 4,888,329 3,617,476
Total Financial liabilities 4,963,858 3,620,227 4,888,329 3,620,985
Fair value is approximately the same as the carrying amounts.
Note 13
FINANCIAL ASSETS AND LIABILITIES
ESVAGT ANNUAL REPORT 2025
38
The share capital comprise of:
No. shares
Nominal value
per share 2025 TDKK 2024 TDKK
2,200,000 1 2,200 2,200
2,200,000 1 2,200 2,200
No shares carry any special rights. There are no restrictions connected to the transferability or voting rights of the
shares. All shares have been fully paid in.
Paid dividend per share is 32.73 DKK. Dividend for 2025 per share is suggested to 30.91 DKK. The total dividend
suggested amounts to TDKK 68,000 and TDKK -85,100 of the result of the parent company is transferred to retained
earnings.
All shares in ESVAGT A/S are owned by ERRV ApS.
Capital management
The group’s objectives when managing capital are to safeguard the group’s ability to continue as a going concern in
order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital struc-
ture to reduce cost of capital. Normal covenant demands applies such as “Leverage Ratio”, “ICR Ratio” etc. which we
have been compliant with during the year.
The Group has not adopted a specific key ratio, but Management and Board of Directors monitor the share and capital
structure to ensure that the group’s capital resources support the strategic goals. The overall target is to have secured
long term financing with fixed interest rates at competitive rates.
The Company’s policy for managing capital is unchanged from last year.
Note 16
SHARE CAPITAL
The group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected
loss allowance for all trade receivables and contract assets.
To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared
credit risk characteristics and the days past due. The contract assets relate to unbilled work in progress and have
substantially the same risk characteristics as the trade receivables for the same types of contracts. The group has there-
fore concluded that the expected loss rates for trade receivables are a reasonable approximation of the loss rates for
the contract assets.
The expected loss rates are based on the payment profiles of sales over a period of 36 month before 31 December
2025 or 31 December 2024 respectively and the corresponding historical credit losses experienced within this period.
The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors
affecting the ability of the customers to settle the receivables. The group has identified the GBP and the oil and energy
prices to be the most relevant factors, and accordingly adjusts the historical loss rates based on expected changes in
these factors. The expected credit losses for all trade receivables and contract assets, 94.0% less than 30 days overdue,
3.0% 30-90 days overdue and 3.0% over 90 days overdue, are immaterial and therefore not recognized.
As further described in note 23, the receivables from Group companies are primarily arising from ordinary sales trans-
actions and are in general repaid in full on a monthly basis. Consequently, the 12-month expected credit losses related
to those receivables are immaterial.
Note 15 – continued
TRADE RECEIVABLES
ESVAGT ANNUAL REPORT 2025
39
GROUP PARENT
TDKK 2025 2024 2025 2024
At 1 January 0 349 0 0
Deferred tax recognized in the income statement 0 -366 0 0
Exchange Rate Adjustment 0 17 0 0
At 31 December 0 0 0 0
The borrowings comprise of vessel financing related loans as well as revolving facilities to fund the ongoing operations.
There are covenants attached to the loan facilities.
Currency Maturity 2025 TDKK 2024 TDKK
Group
Floating rate loans EUR 2029 956,019 0
Floating rate loans DKK 2029 745,000 410,000
Fixed-rate loans EUR 2029 1,805,277 1,803,126
Fixed-rate loans DKK 2029 413,000 413,000
Fixed-rate loans GBP 2029 706,837 741,490
Parent
Floating rate loans EUR 2029 956,019 0
Floating rate loans DKK 2029 745,000 410,000
Fixed-rate loans EUR 2029 1,805,277 1,803,126
Fixed-rate loans DKK 2029 413,000 413,000
Fixed-rate loans GBP 2029 706,837 741,490
The above fixed-rate loans are considered as fixed-rate until 2027 due to rate swaps. Hereafter TDKK 1,693,454 will be
floating until 2029.
Note 17
DEFERRED TAX
Note 18
BANK AND CREDIT INSTITUTIONS
ESVAGT ANNUAL REPORT 2025
40
The statement of profit or loss show the following amounts relating to leases:
GROUP PARENT
TDKK 2025 2024 2025 2024
Depreciation charge of right-of-use assets
Land 337 337 337 337
Cars 456 718 456 718
Equipment 17,748 14,405 17,748 14,405
Vessels 8,735 8,357 8,735 8,357
27,277 23,817 27,277 23,817
The total cash outflow for leases in 2025 was TDKK 49,534 (2024: TDKK 53,983) for the Group and TDKK 49,534 (2024:
TDKK 53,983) for the parent company.
GROUP PARENT
TDKK 2025 2024 2025 2024
Interest expense (included in finance expenses) 10,390 14,537 10.390 14,537
Expense relating to short-term leases (included in other oper-
ating expenses) 414 998 414 998
10,804 15,535 10,804 15,535
The group has entered leases on land, properties, cars, equipment and two Multipurpose ERRV’s. The remaining lease
period for land is 12 years + 5 months. ESVAGT can terminate the contract of the leased land with a 6 months’ notice.
The non-cancellable lease period for cars is typically 36 months. In general car leases do not include any extension
options. The two Multipurpose ERRV’s are leased on a bareboat charter for 5 years. Lease terms are negotiated on an
individual basis and contain a wide range of different terms and conditions. The lease agreements in general do not
impose any covenants but leased assets may not be used as security for borrowing purposes. Exception for main rule is
the two Multipurpose ERRV’s as they comply with the covenant requirements in force at any time towards the external
lenders.
The Group recognized the following amounts relating to leases:
GROUP PARENT
TDKK 2025 2024 2025 2024
Lease liabilities
Current 55,799 51,067 55,799 51,067
Non-current 33,817 88,083 33,817 88,083
89,615 139,150 89,615 139,150
Right-of-use assets
Land 5,878 6,215 5,878 6,215
Cars 982 1,153 982 1,153
Equipment 0 3,825 0 3,825
Vessels 206,799 215,156 206,799 215,156
213,659 226,349 213,659 226,349
Additions to the right-of-use assets during the 2025 financial year were TDKK 14,387 (2024: TDKK 6,579) for the Group
and TDKK 14,387 (2024: TDKK 6,579) for the parent company, respectively.
Note 19
LEASING
ESVAGT ANNUAL REPORT 2025
41
Note 21
FEE TO THE STATUTORY AUDITORS
As part of its asset and liability management, the Group uses derivatives for hedging purposes in order to reduce its
exposure to market risks.
The group has entered foreign exchange contracts to hedge currency risk on contracted long-term revenue and fuel
consumption. Further Interest Rate Swap is used to exchange the floating rate interest payments to fixed-rate interest
payments. Information about the group’s exposure to financial risk is provided in note 27.
GROUP PARENT
TDKK 2025 2024 2025 2024
Reclassified from other comprehensive income
Gains/losses arising on currency forward contracts (cash flow
hedges) reclassified to revenue/other operating expenses
during the year 1,878 -6,527 1,878 -6,527
Interest rate swaps -33,947 -16,997 -33,947 -16,997
-32,070 -23,524 -32,070 -23,524
Note 22
DERIVATIVE FINANCIAL INSTRUMENTS
GROUP PARENT
TDKK 2025 2024 2025 2024
Statutory audit 842 873 842 873
Other assurance service 57 0 57 0
Tax and VAT advisory services 1,377 163 1,377 163
Other services 586 962 563 962
Total fees to PwC 2,862 1,998 2,839 1,998
Asset acquisitions are accounted at cost of the transaction, measured as the fair value of the consideration transferred.
The consideration transferred is allocated to the identifiable assets acquired and liabilities assumed, measured at
fair value at the acquisition date. Vessels acquired are recognised at fair value and depreciated over their estimated
useful lives. Long-term service contracts assumed as part of the acquisition are assessed separately; any unfavourable
elements are recognised as a contract liability and amortised to revenue over the expected contract period.
No Goodwill is recognized in asset acquisitions. Any excess consideration transferred over the fair value of the net
assets acquired is allocated to the identifiable assets based on their relative fair values.
The remaining period is 8 years and 10 months.
The group recognized the following amounts relating to contract liabilities :
GROUP PARENT
TDKK 2025 2024 2025 2024
Contract liabilities
Current 5,523 0 0 0
Non-current 43,174 0 0 0
48,697 0 0 0
Note 20
CONTRACT LIABILITIES
ESVAGT ANNUAL REPORT 2025
42
Note 23
RELATED PARTIES
The Company and its parent company ERRV ApS are included in the consolidated financial statements for ERRV
Holdings ApS, Dokvej 4, 6700 Esbjerg, Denmark.
Interest in subsidiaries and joint ventures are set out in note 12.
The ultimate controlling party is 3i Infrastructure plc, United Kingdom.
The following transactions were carried through with related parties:
GROUP PARENT
TDKK 2025 2024 2025 2024
Transactions with subsidiaries
Sales of services 0 0 202,996 238,341
Transactions with joint ventures
Sales of services 736 1,782 736 1,782
736 1,782 203,732 240,123
The following balances arising from sales/purchases of goods and services are outstanding at the end of the period in
relation to transactions with related parties:
GROUP PARENT
TDKK 2025 2024 2025 2024
Receivables from subsidiaries 0 0 28,170 28,170
Receivables from joint ventures 736 1,782 736 1,782
Loans to related parties
Loans to ERRV ApS and ERRV Holding ApS (parent company)
Beginning of the period 9,125 7,032 9,125 7,032
Loans advanced 1,277 1,734 1,277 1,734
Loans repayments received -4,000 0 -4,000 0
Interest charged 314 359 314 359
End of year 6,716 9,125 6,716 9,125
Loans to subsidiaries
Beginning of the period 0 0 339,190 200,039
Currency adjustment 0 0 -38,018 0
Loans advanced 0 0 19,125 127,561
Loans repayments received 0 0 -64,390 0
Interest charged 0 0 10,521 11,590
End of year 0 0 266,429 339,190
ESVAGT ANNUAL REPORT 2025
43
Note 23 – continued
RELATED PARTIES
GROUP PARENT
TDKK 2025 2024 2025 2024
Loans to joint ventures
Beginning of the period 212,529 127,825 0 0
Currency adjustment -23,512 0 0 0
Loans advanced 10,281 84,704 0 0
Loans repayments received -88,938 0 0 0
Interest charged 1,036 0 0 0
End of year 111,397 212,529 0 0
Loans from subsidiaries
Beginning of the period 0 0 3,937 2,265
Loans advanced 0 0 6,383 1,828
Loans repayments 0 0 0 277
Interest charged 0 0 212 122
End of year 0 0 10,532 3,937
Terms and conditions
Receivables from the Group companies primarily arises from ordinary operations and are in general repaid in full on a
monthly basis. The receivables do not thus carry any interest. Loans to the parent company and to and from subsid-
iaries carry an interest of 3.60% (2024: 4.60%) and the loans are expected to be settled in cash.
The group has interest in a number of individually immaterial joint ventures that are accounted for using the equity
method.
GROUP PARENT
TDKK 2025 2024 2025 2024
Summarised balance sheet
Aggregated carrying amount of individually
immaterial joint ventures 52,895 106,735 0 0
Aggregate amounts of the group's share of
Loss from continuing operations 2,142 82 0 0
Total comprehensive income 2,142 82 0 0
ESVAGT has, through Esvagt Holdings, Inc. (USA) invested in a joint venture, Crowley SOV 1, LLC with an ownership of
25%. The activity of the joint venture is to build and operate an SOV vessel for Siemens Gamesa Renewable Energy
under a long-term contract. The construction proces of the SOV vessel has started in second half of 2023 and the
vessel is expected to be in operation during 2027.
Note 24
INVESTMENTS IN JOINT VENTURES
ESVAGT ANNUAL REPORT 2025
44
Note 26
CASH FLOW STATEMENT
Note 25
CONTINGENT LIABILITIES
GROUP PARENT
TDKK 2025 2024 2025 2024
Change in working capital
Change in inventories -4,253 4,503 -3,576 4,503
Change in trade receivables and receiv. from parent -5,757 23,153 -2,775 -3,600
Change in other receivables and prepayments -8,279 2,741 -8,121 2,657
Change in trade payables, excl. payables related to fixed assets 25,013 230 22,021 -23
Change in payables to group companies 0 0 9,311 0
Change in other payables 46,033 7,214 12,125 7,207
Change in received prepayments 2,389 -2,589 2,389 -2,589
Exchange gains and losses on working capital 277 -331 277 -331
55,423 34,921 31,651 7,824
Changes in liabilities arising from financing activities
Bank and credit institutions at 1 January 3,293,633 3,059,428 3,293,633 3,059,428
Proceeds from loans from credit institutions 1,291,006 210,016 1,291,006 210,016
Amortized loan cost 16,025 -11,933 16,025 -11,933
Foreign currency -32,489 36,122 -32,489 36,122
Bank and credit institutions at 31 December 4,568,175 3,293,633 4,568,175 3,293,633
Lease liabilities at 1 January 139,150 190,394 139,150 190,394
Repayment of leases -63,897 -54,777 -63,897 -54,777
New leases 14,362 3,533 14,362 3,533
Lease liabilities at 31 December 89,615 139,150 89,615 139,150
Financing liabilities at 31 December 4,657,790 3,432,783 4,657,790 3,432,783
Litigation
None
GROUP PARENT
TDKK 2025 2024 2025 2024
Bank loans secured in vessels
Bank and other credit institutions - amount secured 4,626,133 3,367,616 4,626,133 3,367,616
Carrying amount of vessels provided as security 5,605,136 4,026,677 4,645,485 4,026,677
Other contingent liabilities
Since 17 September 2015 ESVAGT A/S is part of national joint taxation in Denmark with ERRV Holding ApS and is
jointly liable with other Danish companies owned by ERRV Holding ApS.
ESVAGT ANNUAL REPORT 2025
45
Note 27
FINANCIAL RISK MANAGEMENT
Financial risk factors
The Financial risks of the group are managed centrally. The overall risk management guidelines and policies have been
approved by the Board of Directors. Group Finance/Treasury department identifies and evaluates exposures in close
co-operation with the group’s operating units. The board provides written principles for overall risk management.
Market Risk
Foreign exchange risk
The revenue is denominated in other currencies than DKK, mainly EUR, GBP and NOK. Part of these transactions is
hedged according to the Group policy. Increases or decreases in the exchange rate of GBP and NOK against the func-
tional currency, can affect the group’s results and cash position negatively or positively.
The cost of goods sold, and operating expenses are mainly incurred in DKK. The Group has transactions in other
currencies, mainly EUR, but the foreign exchange risks related to this are not considered material, due to fixed change
rate policy in Denmark against EUR. Fuel expenses are however paid in USD and most fuel expenses are reinvoiced to
customers, and therefore not hedged according to the Group policy. Increases or decreases in the exchange rate of
such foreign currency against the functional currency, can affect the group’s results and cash position negatively or
positively.
Exposure
The group’s exposure to foreign currency risk at the end of the reporting period, in the different currency units
converted to TDKK, was as follows:
GROUP
Currency amounts converted to TDKK EUR GBP NOK USD
2025
Trade receivables 81,216 46,488 33,170 663
Receivables from joint ventures 0 0 0 111,397
Cash and cash equivalents 21,761 19,767 11,182 101,370
Bank loans -2,761,296 -706,837 0 0
Trade payables -27,973 -3,684 -3,965 -18,153
-2,686,292 -644,267 40,388 195,278
2024
Trade receivables 84,155 36,936 28,248 757
Receivables from joint ventures 0 0 0 212,529
Cash and cash equivalents 40,676 37,264 33,613 1,942
Bank loans -1,803,133 -741,490 0 0
Trade payables -20,194 -2,546 -2,245 -15,456
-1,698,496 -669,836 59,616 199,772
ESVAGT ANNUAL REPORT 2025
46
Note 27 – continued
FINANCIAL RISK MANAGEMENT
2025 2024
TDKK
Impact on
Post Tax
Profit
Impact on
Other
Components
of Equity
Impact on
Post Tax
Profit
Impact on
Other
Components
of Equity
Group
GBP/DKK exchange rate - increase 10% -64,427 -64,427 -66,984 -66,984
NOK/DKK exchange rate - increase 10% 4,039 4,039 5,962 5,962
USD/DKK exchange rate - increase 10% 8,373 8,373 -1,276 -1,276
Parent
GBP/DKK exchange rate - increase 10% -68,139 -68,139 -70,159 -70,159
NOK/DKK exchange rate - increase 10% 4,189 4,189 5,884 5,884
USD/DKK exchange rate - increase 10% 1,043 1,043 -1,435 -1,435
2025 2024
TDKK
Impact on
Post Tax
Profit
Impact on
Other
Components
of Equity
Impact on
Post Tax
Profit
Impact on
Other
Components
of Equity
Group
Interest rates – increase by 100 basis points -17,010 0 -4,100 0
Interest rates – decrease by 100 basis points 17,010 0 4,100 0
Parent
Interest rates – increase by 100 basis points -17,010 0 -4,100 0
Interest rates – decrease by 100 basis points 17,010 0 4,100 0
The calculation is based on an increase in both short- and long-term interest. All other variables are held constant.
Loans are in floating interest rate original duration 7 years (expiry 2029). Interest rate is swapped to fixed rate for 5
years (expiry 2027).
PARENT
Currency amounts converted to TDKK EUR GBP NOK USD
2025
Trade receivables 79,314 12,995 33,170 663
Cash and cash equivalents 17,001 16,042 10,872 27,582
Bank loans -2,761,296 -706,837 0 0
Trade payables -27,076 -3,594 -2,153 -17,819
-2,692,056 -681,395 41,890 10,426
2024
Trade receivables 82,480 5,472 28,248 0
Cash and cash equivalents 34,350 36,972 32,836 1,103
Bank loans -1,803,133 -741,490 0 0
Trade payables -20,194 -2,546 -2,245 -15,456
-1,706,497 -701,592 58,839 -14,353
Interest rate risk
The group’s interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the group
to cash flow interest rate risk. Borrowings issued at fixed rates expose the group to fair value interest risk. Group policy
is always to ensure that a minimum of 70 percent of total outstanding debt is fixed rate or effectively bears a fixed rate
pursuant to a hedging agreement. The group is compliant with the policy at 31 December 2025.
Sensitivity analysis
Profit or loss is sensitive to higher/lower interest from borrowings and fair value changes of interest rate derivatives as
a result of changes in interest rates. The sensitivity analysis is based on financial instruments recognized at the balance
sheet date. Effects from hedging is not included in these calculations and sensitivity figures..
ESVAGT ANNUAL REPORT 2025
47
Note 27 – continued
FINANCIAL RISK MANAGEMENT
GROUP
TDKK
Less than
1 year 1-5 years > 5 years Total
Non-derivatives
At 31.12.2024
Credit institutions* 171,035 3,367,616 0 3,538,651
Lease liabilities 51,067 88,083 0 139,150
Trade payables 77,600 0 0 77,600
Other payables 100,337 0 0 100,337
400,041 3,455,699 0 3,855,739
At 31.12.2025
Credit institutions* 334,402 4,506,133 0 4,840,535
Lease liabilities 55,799 33,816 0 89,615
Trade payables 102,613 0 0 102,613
Other payables 195,068 0 0 195,068
687,882 4,539,949 0 5,227,831
* Expected interest payment
Derivatives
At 31.12.2024
Foreign exchange options / forwards used to hedge currency
and interest rate risk -3,510 59,995 0 56,485
-3,510 59,995 0 56,485
At 31.12.2025
Foreign exchange options / forwards used to hedge currency
and interest rate risk 39 26,048 0 26,087
39 26,048 0 26,087
Credit risk
Credit risk is managed on group basis, except for credit risk relating to account receivable balances. Each local entity
is responsible for managing and analyzing the credit risk for each of their new clients before standard payment and
delivery terms and conditions are offered.
Credit risk arises from cash and cash equivalents and deposits with banks and financial institutions, as well as credit
exposures to customers, including outstanding receivables. For banks and financial institutions, only independently rated
parties with a minimum rating of 'BBB-' are accepted, For customers individual risk limits are set based on internal or
external ratings in accordance with limits set by the board. No significant risk related to intercompany trade receivables
due to monthly settlements as further described in note 23. Intercompany loans carry no significant credit risk, as they
provide funding during the US vessel’s construction period until financing is secured upon delivery of the vessel.
The maximum exposure corresponds to the carrying amount of receivables and cash.
Liquidity Risk
Cash flow forecasting is performed by group finance. Group finance monitors rolling forecasts of the group’s liquidity
requirements to ensure it has sufficient cash to meet operational needs. Such forecasting takes into consideration the
group’s debt financing plans and compliance with loan documentation. The group has undrawn borrowing facilities
of TDKK 1,127,761. The borrowing facilities is part of the current bank facilities attached to the same covenants as
mentioned in note 18.
The tables below analyses the group’s derivatives and non-derivative financial liabilities into relevant maturity group-
ings based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed
in the table are the contractual undiscounted cash flows.
ESVAGT ANNUAL REPORT 2025
48
Note 27 – continued
FINANCIAL RISK MANAGEMENT
The group operates internationally and is exposed to foreign exchange risk, primarily the NOK, GBP and USD. Foreign
exchange risk arises from future commercial transactions denominated in currencies that are not DKK or EUR. The
risk is measured through forecasts of highly probable expenditures in NOK, GBP and USD. The risk is hedged with the
objective of minimizing the volatility of currency cost of highly probable revenue and purchases of property, plant and
equipment.
The group treasury’s risk management policy is to hedge up to 80% of forecast income and expenses in currencies
other than DKK and EUR up to one year in advance.
The group uses foreign currency forwards to hedge its exposure to foreign currency risk. Under the group’s policy the
critical terms of the forwards must align with the hedged items.
The group designates the forward rate of foreign currency forwards in hedge relationships. The intrinsic value of
foreign currency is determined with reference to the relevant spot market exchange rate.
Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effec-
tiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument
For hedges of foreign currency purchases, the group enters hedge relationships where the critical terms of the hedging
instrument match exactly with the terms of the hedged item. The group therefore performs a qualitative assessment of
effectiveness.
In hedges of foreign currency purchases, ineffectiveness may arise if the timing of the forecast transaction changes
from what was originally estimated, or if there are changes in the credit risk of ESVAGT or the derivative counterparty
and as differences between the spot rate and the forward rate of a contract.
Fair value
Financial instruments measured at fair value can be divided into three levels:
Level 1 - Quoted prices in active markets for identical assets or liabilities
Level 2 – Inputs other than quoted prices included in level 1 that are observable for the asset or liability
Level 3 – Input for the asset or liability that are not based on observable market data.
The fair value of bank borrowings does not differ significantly from the carrying amount. The fair value of derivatives is
calculated on level 2 in the fair value hierarchy using direct quotes.
Fair value measurements
GROUP PARENT
TDKK 2025 2024 2025 2024
Significant other observable inputs (Level 2)
Forwards used to hedge currency risk 39 -3,510 39 -3,510
Forwards used to hedge interest risk 26,048 59,995 26,048 59,995
26,087 56,485 26,087 56,485
Measurement of derivatives
The valuation techniques used to measure derivatives include:
• the fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance
sheet date.
Derivatives are only used for economic hedging purposes and not as speculative investments. However, where deriv-
atives do not meet the hedge accounting criteria, they are classified are accounted for at fair value through profit or
loss. They 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. Interest rate derivates entered with a value of TDKK 26,048.
ESVAGT ANNUAL REPORT 2025
49
Note 28
EVENTS AFTER THE BALANCE SHEET DATE
Subsequent to the reporting date, ESVAGT completed a capital increase including share premium of 200,000 TDKK. The
capital increase was executed through the issuance of new shares and fully subscribed.
No other material events have occurred after the reporting period that would require adjustment to or disclosure in the
financial statements.
Note 29
COMPOSITION OF THE GROUP
Name of Entity:
Ownership and
Voting Rights
held by ESVAGT
Place of Business/
Incorporation
Investments in subsidiaries
ESVAGT Holdings Limited 100% Great Britain
ESVAGT UK Limited 100% Great Britain
ESVAGT Norge AS 100% Norway
ESVAGT Holdings Inc 100% United States
ESVAGT Korea ApS 100% Denmark
Mar de Grado S.L 100% Spain
Mar de Berrobi S.L 100% Spain
P/F ESVAGT-THOR 51% Faroe Islands
Investments in Joint Ventures
Crowley SOV I, LLC 25% United States
Note 27 – continued
FINANCIAL RISK MANAGEMENT
The effects of the foreign currency related hedging instruments on the group’s financial position and performance are
as follows:
GROUP
NOK GBP USD
Foreign currency forwards as at 31 December 2024
Carrying amount in TDKK 96,008 88,144 22,041
Notional amount 150,000 10,200 3,300
Maturity date Jan2025 Jan2025 Jan2025
Jan2026 Dec2025 Mar2025
Weighted average hedged rate for the year (incl. forward points) 64.31 864.71 667.90
Foreign currency forwards as at 31 December 2025
Carrying amount in TDKK 31,983 122,636 0
Notional amount 50,000 14,400 0
Maturity date Jan2026 Jan2026
Jan2026 Dec2026
Weighted average hedged rate for the year (incl. forward points) 63.97 851.64 0
ESVAGT ANNUAL REPORT 2025
50
COMPANY
INFORMATION
DEFINITIONS
Company
Company No. / CVR No. 60 69 88 13
Municipality of reg. office Esbjerg
Phone No. +45 78 73 07 30
Internet www.ESVAGT.com
E-mail mail@ESVAGT.com
Board of Directors
Jakob Bo Thomasen, Chairman
Anna Dellis
Lars Oscar Tylegård
Søren Poulsgaard Jensen
Henrik Gorzelak Pedersen
Paul Kragesteen
Executive Management
Søren Karas
Kristian Ole Jakobsen
Audit
Profit margin % =
Profit before financial items
x 100
Revenue
Return on equity % =
Profit for the year
x 100
Average equity
Equity ratio % =
Equity
x 100
Total assets
ESVAGT ANNUAL REPORT 2025
51
