ANNUAL REPORT 2022 HELGA COTGROVE
Annual report 2022
Eidesvik Offshore ASA
VESTVIKVEGEN 1, 5443 BØMLO
CONTENTS
2022 – C
EO Statement 03
Key figures 04
Corporate Governance 05
HSEQ report for 2022 09
Extract of the Environmental, Social and Governance report 12
The Board of Directors 19
Report of the Board of Directors 2022 21
Declaration by the Board of Directors and CEO 28
Financial statements – consolidated accounts 29
Notes to the consolidated accounts 35
Financial statements – parent company 75
Notes to the annual accounts – parent company 79
Appendix 1 – Alternative performance measures definitions 86
Auditor’s report 87
2
2022 – CEO statement
2022 was in many ways a turn-around year
for Eidesvik. After some very challenging
years for the industry, the Company is now
on sound financial ground. During the year
we also saw the market fundamentals
improve in all our operating segments. On
the foundation of our long-term partnerships
and our ambitious environmental strategy
we are now fully focused on building the
company for the future.
Our primary concern is always to safeguard
the health and safety of our employees. We
continuously implement measures to reduce
risk exposure for our personnel and third
parties, and we are proud to have reached
our goal of zero LTIs in 2022 much thanks
to our seafarers’ continuous focus on safety.
During the year, we secured multiple long-
term contracts with high-end clients,
including a 3-year contract with Aker BP for
Viking Prince, a 5-year contract with Van
Oord for Subsea Viking and a 3-year
contract with Equinor Energy for Viking
Avant. Furthermore, we completed the sale
of Viking Neptun and signed a Ship
Management agreement for the vessel with
DEME Group. The sale of Viking Neptun
enabled us to substantially deleverage our
balance sheet and increase our flexibility.
Our long-term customers show continued
trust in our services with declaration of
options as well as new contract awards. This
is a clear testament to our crew’s high
standard of safety and strong operational
performance. It is also a pleasure to note
the Company’s ability to establish new
partnerships with leading international
clients in the emerging offshore wind
market. We very much look forward to
delivering our services to these companies
in the coming years.
Sustainability is an integral part of our
business, and alongside our annual report
we publish our Sustainability report. The
report covers Environmental, Social and
Governance factors to measure our
progress and identify both risks and new
opportunities for the company. We are proud
of our pioneering history in demonstrating
new technologies that reduce emissions.
With a dedicated technology & development
department, this work continued at full
speed in 2022. As a market leader within
green OSVs, we are well-positioned to adapt
to and manage new business conditions and
future regulations.
Despite a challenging macro environment
and high cost inflation, we can look back on
a year characterized by operational
excellence, cost control and a continued
focus on innovation and climate action. I
want to say thank you to Eidesvik’s
employees for all their hard work in 2022.
Through the year, we have managed to
strengthen the company both financially and
operationally and we ended the year 2022
with a record-high backlog. Together we
have laid the groundwork for long-term,
sustainable growth – and for creating value
for our clients, shareholders, business
partners and employees.
3
Key figures
*) Book equity plus added value of broker estimates per December 31, 2021, on vessels on the assumption that
the vessels are contract-free.
**) Excluding IFRS 16. Liabilities related to Assets held for sale will become due and payable at the time of
completion of the sale. Eidesvik has in Q1 2023 refinanced its debt, and the new maturity is February 28, 2026.
Please see note 20 for further information.
(all figures in TNOK) 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013
Operating income 918 547 587 798 530 760 681 559 489 229 754 716 784 106 1 238 936 984 749 993 745
EBITDA 494 213 178 712 131 113 243 188 96 919 385 291 415 284 770 286 492 173 551 242
EBITDA margin 54 % 30 % 25 % 36 % 20 % 51 % 53 % 62 % 50 % 55 %
Profit/loss for the year 406 736 30 737 -132 434 -690 273 -316 625 147 368 -564 519 -239 892 -230 575 140 863
Profit per share 5,57 -0,25 -1,99 -9,64 -4,83 5,15 -18,34 -6,53 -5,77 4,67
Total assets 2 339 034 2 750 583 3 097 113 3 360 275 4 100 576 4 297 512 5 068 060 6 070 157 5 556 166 5 700 197
Equity 928 047 521 098 480 519 729 474 1 424 825 1 542 006 1 457 051 2 041 814 2 125 385 2 348 288
Equity ratio 40 % 19 % 16 % 22 % 35 % 36 % 29 % 34 % 38 % 41 %
Value-adjusted equity
*)
1 593 047 1 402 098 1 284 519 2 094 474 2 291 825 2 434 806 2 701 029 3 676 354 4 190 385 4 476 288
Value-adjusted equity ratio 53 % 39 % 33 % 44 % 46 % 47 % 43 % 48 % 55 % 57 %
Market value at 31 December 559 350 252 951 188 936 325 666 284 647 244 215 186 629 289 139 738 675 1 040 175
Market value per share at 31 December 9,00 4,07 3,04 5,24 4,58 8,10 6,19 9,59 24,50 34,50
Dividend paid per share 0,00 0,00 0,00 0,00 0,00 0,00 0,00 0,00 1,00 1,00
Liquid funds incl. unused credit 655 653 330 401 429 183 408 319 515 605 557 440 549 738 702 276 549 556 782 773
Working capital incl. unused credit, excl. balloons 630 725 237 746 527 918 432 256 477 152 264 646 395 827 420 631 -40 897 259 292
First year’s repayment of long-term liabilities
**)
1 095 934 128 364 157 725 93 756 93 232 304 836 322 187 335 039 391 243 324 073
4
Corporate governance
PRINCIPLES AND VALUES FOR
CORPORATE GOVERNANCE IN
EIDESVIK OFFSHORE ASA
The Board of Directors of Eidesvik Offshore
ASA (the “Company”) shall ensure that the
Company complies with the “Norwegian
Code of Practice for Corporate Governance”
of October 14, 2021. The Group’s
compliance with, and any deviations from
the code of practice, must be commented by
the Board in relation to every point in the
Norwegian Code of Practice for Corporate
Governance, and made available to the
Company’s stakeholders along with the
annual report.
The purpose of the guidelines for corporate
governance in Eidesvik Offshore ASA is to
clarify the roles between shareholders, the
General Meeting, the Board and executive
management exceeding what is evident by
legislation.
The principles and core values for corporate
governance in Eidesvik Offshore ASA are
set out in the following documents (complete
documents are available from the
Company’s website at www.eidesvik.no):
• The Board’s annual report for the
Company’s corporate governance.
• Articles of Association of Eidesvik
Offshore ASA of March 24, 2023.
• Instructions for the Board of
Directors.
• Instructions for CEO.
• Guidelines for planning and
budgeting.
• The Company’s core values and
ethical guidelines.
• The Company’s guidelines for social
responsibility.
• Guidelines for handling price-
sensitive information and insider
trading.
• Guidelines for determination
salaries and other remuneration to
management.
• Guidelines for use of the auditor as
an advisor to the Company.
• Guidelines for information from the
Company.
The Company shall be based on open
interaction and coordination between the
Company’s shareholders, Board and
management, as well as other stakeholders
such as employees, customers, suppliers,
creditors, public authorities and society in
general.
The Company’s core values and ethical
policy are set out in “Ethical guidelines and
core values for Eidesvik Offshore ASA”, and
its social responsibility policy is covered by
the “Human rights policy” and
“Environmental policy”.
Comment: No deviations from the Norwegian Code
of Practice for Corporate Governance.
Business
The Company’s business is described in
Article 3 of its Articles of Association. The
Board determines the Group’s overall goals,
strategy and risk profile. The strategic plan
is revised annually. The mission statement
in the Articles of Association and the
Company’s goals and strategies are set out
in the Annual Report, which are also
published on the Company’s website at
www.eidesvik.no.
Comment: No deviations from the Norwegian Code
of Practice for Corporate Governance.
Equity and dividends
The Board shall ensure that the Company
holds equity commensurate with the risk
from and scope of the Company’s
operations, cf. “Instructions for the Board of
Directors”. The Board determines the
Company’s dividend policy, and presents
this with its proposed dividend to the
Company’s General Meeting. There is
currently no outstanding authorisation for
the Board to issue new shares to increase
the Company’s capital.
Comment: No deviations from the Norwegian Code
of Practice for Corporate Governance.
5
Equal treatment of shareholders
Eidesvik Offshore ASA has only one class of
shares.
In the event of an increase in share capital,
the principle of equal rights for all
shareholders to buy shares applies.
Own shares are bought on the stock
exchange at market value.
Comment: No deviations from the Norwegian Code
of Practice for Corporate Governance.
Shares and negotiability
The shares in the Company are listed and
freely negotiable. The Articles of
Association do not impose any form of
restrictions on negotiability.
Comment: No deviations from the Norwegian Code
of Practice for Corporate Governance.
General Meetings
The notice of and procedure for the
Company’s General Meeting follow the
regulations given by the Public Limited
Liability Companies Act with regards to
contents and deadlines. The registration
deadline is set as close to the meeting as
practicable. Shareholders who are unable to
attend may vote by proxy.
Notice of the meeting, proposed resolutions,
proxy forms, other case documents and
information on shareholders’ right to raise
matters at the General Meeting are made
available at the Company’s website as soon
as they have been approved by the Board.
The Board and the chair of the General
Meeting must arrange for the general
meeting to vote for each candidate
nominated for election to corporate bodies.
The minutes of the General Meetings are
made available on the Company’s website
as soon as possible.
Comment: No deviations from the Norwegian Code
of Practice for Corporate Governance.
Nomination committee
The Nomination Committee shall according
the Articles of Association consist of three
to five members. The Nomination committee
shall make proposals for election of Board
Members and members of the Nomination
Committee to the General Meeting. The
General Meeting may adopt guidelines for
the Nomination Committee.
Comment: Deviates from the Norwegian Code of
Practice for Corporate Governance in that one
Board Member currently also is part of the
Nomination Committee.
Board of Directors: composition and
independence
The composition of the Board of Directors of
Eidesvik Offshore ASA is made to safeguard
the interests of shareholders and the
Company’s need for competence, capacity
and diversity. The Board considers it
important that the Board can function well
as a collegial body.
The Board is composed in such a way that it
can act independently of special interests.
The majority of the members elected by
shareholders are independent of the
Company’s executive management and
major business associates.
At least two of the members elected by
shareholders are independent of the
Company’s main shareholders.
Representatives of the executive
management are not members of the Board.
The Chair is elected by the General
Meeting, as the Company does not have a
corporate assembly.
The Board members are elected for two
years at a time. In the Annual Report, the
Board provides details of the Board
members’ competence and capacity, as well
as which Board members are considered to
be independent.
Board members are encouraged to own
shares in the Company.
Comment: Deviates from the Norwegian Code of
Practice for Corporate Governance in that there is
6
no mention in the annual report of attendance at
Board meetings. This is not considered relevant as
it is very rare directors are not attending Board
meetings, either physically or by telephone/video.
The work of the Board of Directors
A separate instruction for the Board of
Directors of Eidesvik Offshore ASA has
been prepared.
The Group has an audit committee, and the
Board of Directors of Eidesvik Offshore has
established instructions for the audit
committee.
For transactions between companies of the
Group, there are guidelines in “Instructions
for the Board of Directors”.
For significant transactions between the
Company and shareholders, board
members, senior executives or persons
related to them, an independent valuation
must be obtained. This does not apply when
the General Meeting is to discuss the matter
according to the provisions of the Public
Limited Liability Companies Act. The same
applies to transactions between companies
in the Group where there are minority
shareholders.
The instructions for the Board, the
instructions for the CEO, and the ethical
guidelines have rules for impartiality.
Comment: No deviations, all related parties
transactions are presented in the notes to the
financial statement in the annual report.
Risk management and internal control
According to the instruction for the Board of
Directors of Eidesvik Offshore ASA, the
Board ensures that the Company has good
internal control and appropriate systems for
risk management. The Board receives
monthly status reports on Company
operations, including financials with
deviation analysis and liquidity forecasts.
Comment: No deviations from the Norwegian Code
of Practice for Corporate Governance.
Remuneration of the Board of
Directors
The remuneration of the Board is
determined by the General Meeting and
does not depend on results. Information on
remuneration is given in the annual report.
Comment: No deviations from the Norwegian Code
of Practice for Corporate Governance.
Salary and other remuneration for
executive personnel
The Board has adopted guidelines approved
by the annual general meeting for
remuneration for executives stating the
main principles of the Company’s executive
remuneration policy.
Comment: No deviations from the Norwegian Code
of Practice for Corporate Governance.
Information and communications
The Board has adopted guidelines for the
Company’s contact with shareholders
outside the General Meeting. These are set
out in the Board’s annual report. The
Company publishes a financial calendar
each year, and all interim reports and
results presentations are published on the
Company’s website and the Oslo Stock
Exchange.
Comment: No deviations from the Norwegian Code
of Practice for Corporate Governance.
Take-overs
The Board has not prepared guiding
principles for how to act in the event of a
takeover bid.
Comment: Deviates from the Norwegian Code of
Practice for Corporate Governance. With the
current composition of shareholders, a takeover is
not considered likely without the main owner
working in close cooperation with the Board.
Auditor
The external auditor is elected at the
General Meeting, which also approves the
auditor’s fees for the parent company. On an
annual basis, the auditor presents an audit
plan to the audit committee, and participates
7
in audit committee meetings to review the
Group’s internal control and financial risk
management systems and procedures. The
auditor also participates in board meetings
when considered appropriate, with and
without management present. Information
about the auditor’s fees, including a
breakdown of audit related fees and fees for
other services is included in the notes to the
financial statements in accordance with the
Norwegian Accounting Act. The Company’s
external auditor is Ernst & Young AS.
Comment: No deviations from the Norwegian Code
of Practice for Corporate Governance.
8
HSEQ report for 2022
INTRODUCTION
The quality and safety system “Eidesvik
Management System” is certified by DNV to
meet the requirements of the ISM Code, ISO
9001:2015, ISO 14001:2015, MLC 2006 and
the ISPS Code.
Throughout 2022, our EMS are built on
“Simplified and improved safety
management”, and all our operational
vessels are using updated manuals for
bridge, deck, engine, galley, and crane
operations as applicable. We receive very
positive feedback from both users and
clients. Required revisions considered on an
ongoing basis, including new procedures as
needed. Good working environments are
established at all vessels, with focus on
awareness and monitoring of health, safety
and environmental aspects identified by
Eidesvik.
Eidesvik has prepared an annual HSEQ
program that specifically addresses future
focus areas, including “Key Performance
Indicators” (“KPIs”). The KPIs are
communicated to all vessels and
departments and posted in public areas both
on vessels and at office. Eidesvik focuses
on a strong commitment to the HSEQ
program to achieve the goals within the
various areas. The guiding documents are
continuously evaluated to ensure optimal
and functioning operating procedures for the
employees both offshore and onshore.
The Company had, as in 2021, zero lost time
incident (LTI) in 2022 - a very well
performance. This underlines the
importance of a continuing strong focus on
HSE in all parts of the Company’s
operations, to ensure all our employees are
at same good health when travelling home
for leave as they were when joining.
The statistic below illustrates the number of
personal injuries per million working hours
over the last 5 years.
9
Emphasising the analysis of causal relations
and underlying causes are important as a
basis for lessons learned to other vessels
within Eidesvik. Focusing on operations and
compliance with the EMS are important
accompanying measures. In addition to
preventing injuries, we also focus on the
following actions:
• Focus on “safety observations”
reporting method, especially
proactive reports. This has
contributed to an increase in
reporting. Reports are reviewed at
safety meetings on board. In 2022,
4,071 “safety observations” were
reported; whereof 53% was
proactive. This constitutes a large
percentage of the total number of
reports in the HSEQ field.
• Extensive use of risk analysis. All
vessels and office are analysing
tasks/jobs to avoid accidents/
injuries, and any hazards are
highlighted, and actions are
implemented to reduce and/or
remove the hazards. In 2022, 612
new and/or revised risk analysis
were done.
• By holding “Toolbox Talk” meetings
(“TBT”), this helps us to avoid
accidents and injuries. The people
executing the jobs are also doing the
planning and receive information on
potential hazards in connection with
the job. Total number of TBT in 2022
was 22,714.
• Work on board is performed
according to a “Permit to Work”
system (“PTW”). This helps us to
avoid accidents and injuries.
Everyone needs to obtain
permission from the vessel’s
management before performing jobs
that could cause a risk to personnel,
environment, and vessel.
INCIDENT REPORTING
In 2022, 548 incident reports (including near
miss) in all categories were logged. In
addition, 221 document of change requests
and 124 improvements suggestion was
submitted from vessels and office. The
office issued 44 lessons learned reports to
vessels and office. The incident, near miss,
improvement suggestion, document of
change request, improvement suggestions
and lesson learned reports are a positive
foundation for learning and implementing
specific actions to avoid reoccurrences. A
strong and healthy culture for reporting
enables the organisation to identify
developments and trends within specific
operations or tasks. This is used to improve
areas to prevent incidents from recurring.
Reporting of incidents has a preventive
10
effect, and the Company has a strong focus
on this.
QUALITY
Our goal is to provide services of a quality
that exceeds the customer’s expectations,
and we follow up on surveys of customer
satisfaction from every vessel and crew.
Quality is to do the job right first time.
WORK ENVIRONMENT ACTIONS
Please read about Eidesvik’s work
environment actions in the extract to the
ESG report. The full report is available on
the Eidesvik website.
SICK LEAVE
Absence due to illness in 2022 was 4.9%.
This is a decrease of 3.2% from 2021
(8.1%). High numbers for 2021 mainly due
to Covid-19 pandemic.
Eidesvik has high focus on preventive
actions and closer follow-up from company
and management to increase attendance at
work. Employees have also been enabled to
subscribe to private health services, as well
as cover for physiotherapy. Company
occupational health service is an important
support in these efforts.
11
Extract of the Environmental, Social
and Governance report
This section provides a summary of
Eidesvik’s approach to environmental,
social and governance (ESG) issues, and
the associated key performance indicators.
A detailed 2022 Sustainability report is
published as a separate document on our
website
1
. The report has been prepared in
accordance with the Norwegian Shipowners'
Association Guidelines for ESG reporting in
the shipping and offshore industries.
Determination of material topics was done in
accordance with the Global Reporting
Initiative Materiality Standard, GRI 3 (2021).
KEY HIGHLIGHTS 2022
In 2022, good progress was made on
Eidesvik’s sustainability agenda. Key
highlights include:
E
• 27.5% reduction in CO2 emissions from PSV and 17.1% from Subsea/Wind
fleet since the baseline year (2008)
• 26.5% reduction in CO2 emissions per operational day compared to 2021
• Two additional vessels have been fitted with battery hybrid solutions, by the
end of 2022 92% of the operational fleet was equipped with hybrid
technology.
S
• Zero lost time incidents
• 50% women in top management
• Joined the Future Proof network for human rights
G
• Established an ESG committee
• Appointed a VP Sustainability
• Increased our footprint in the offshore wind market
SUSTAINABILITY AT EIDESVIK
Eidesvik works proactively to ensure that
ESG is included in all its operations. The
company has established policies and
procedures to ensure a consistent ESG
management and risk mitigation.
Sustainability is anchored with the Board of
Directors (BoD) and the Top Management
Team. The CEO, together with the Top
Management Team, has the overall
responsibility for the integration of
sustainability into Eidesvik’s operations, to
set priorities, targets and drive
1
https://eidesvik.no/sustainability/
implementation, and for including
sustainability in core processes related to
strategy, planning and risk management.
Eidesvik established in 2022 an ESG
committee with representatives from all
parts of the organization. The committee
performs quarterly monitoring of
development within sustainability metrics
and evaluate necessary corrective actions.
The committee is led by our VP
Sustainability.
Eidesvik prioritizes the areas within ESG
that are most material to its industry, and
where the company can have the most
12
significant impact. Eidesvik’s priorities are
also guided by those topics that can have a
financial impact on our operations. Overall,
Eidesvik’s sustainability work is focused on
the following priorities:
• Be a safe and fair employer
• Reduce our emissions
• Contribute to the energy transition
• Be a responsible partner
The priority areas are based on a materiality
assessment that was conducted in 2021,
which included stakeholder dialogue with
employees, suppliers, customers, selected
associations, and investors. Following the
materiality assessment, Eidesvik involved
all areas of operations to define KPIs related
to the material sustainability topics.
In a broader perspective, Eidesvik aims to
contribute to the UN Sustainable
Development Goals, and the company has
prioritized five SDGs to which it can
contribute the most:
• SDG 8 – Decent work and economic
growth
• SDG 9 – Industry, Innovation, and
Infrastructure
• SDG 13 – Climate Action
• SDG 14 – Life below water
• SDG 17 – Partnership for the goals
IMPACT FROM THE WAR IN UKRAINE
Eidesvik is deeply concerned by the
immense human suffering caused by the war
in Ukraine. The war has also caused severe
challenges to the global economy and
triggered major disruptions to global
markets for critical raw materials.
The EU has imposed massive and
unprecedented sanctions against Russia in
response to the war, and Eidesvik supports
and complies with the sanctions
imposed. Ensuring our suppliers, clients
and partners also comply with all relevant
sanctions regulations was a significant
governance topic in 2022.
Eidesvik has not been directly affected by
the war as we do not operate in the Baltic
Sea nor does the company have any
dealings with Russia or companies with
Russian ownership. Eidesvik will continue to
monitor the rapidly evolving sanctions and
ensure compliance.
13
KEY TARGETS AND PERFORMANCE
ENVIRONMENTAL IMPACT
The shipping industry may have negative
implication for both human and ecosystem
health in the form of emissions, pollution,
spills and discharges. The company’s ability
to manage these risks and to mitigate the
negative environmental impact is critical not
only for the environment, but for Eidesvik’s
business.
Eidesvik strives to be a powerhouse for
future oriented shipping and marine
operations, and to position the company at
the forefront of the development of zero-
emission shipping solutions. To reach this
goal, the company is actively engaged in
2
Data for CO2 calculated per Statistics Norway’s "Emission
factors used in the estimations of emissions from
combustion
both reducing greenhouse gas emissions
from our fleet, and to contribute with the
development of new technology that will
reduce emissions across the industry.
Eidesvik’s ambition is to have a climate
neutral fleet by 2050. The mid-term goal is
to reduce emissions by 50% in 2030,
compared to a 2008 baseline. These are
ambitious targets that will require a
comprehensive transition to new and green
fuels for a large part of our fleet.
Eidesvik believes that our 2030 target is
feasible however recognizes that the
needed transition is also relying on factors
out of the company’s control. To succeed
3
The number of Total Reportable Cases per million
Exposure Hours worked during the period (excluding first
aid)
Status
2022
2021
2020
SDG
Environmental
50% reduction in CO2 emissions by
2030, climate neutral fleet by 2050
(baseline 2008)
2
27.5%
(PSV)
17.1%
(Subsea/Wind)
21.7% (PSV)
13.7%
(Subsea/Wind)
18.2% (PSV)
13.7%
(Subsea/Wind)
emissions per nautical mile (year-
0%
22.4%
20.1%
emissions per operational day
26.5%
14.2%
15.6%
Zero spills to sea
0.4 m3
(21 spills)
4.3 m3
(19 spills)
1 m3
(16 spills)
100% of fleet running on battery
hybrid solutions
92%
75% 60%
Social
26
37 34
Trainee rate 7% of workforce
8.9
9.3 7
73
70 70
Zero Lost Time Incidents
0
0 0.50
<2 TRCF1
3
0,53
0.46 2.52
Governance
All suppliers representing 25
MNOK+ or defined as critical for
our operations will be audited
within a three-year period
2
1 -
14
the industry is dependent on the creation,
and scale-up, of a complete value chain,
including fuel production, bunkering
infrastructure and new
environmental requirements that creates a
market for low- and zero emission vessels.
As shipowner Eidesvik is committed to do
our part in terms of investigating a range of
fuel and technologies that can take the
company to a 50% reduction in 2030 and
carbon neutrality in 2050.
By the end of 2022, Eidesvik had achieved
a 17.1% reduction in emissions from its
subsea/wind fleet and 27.5% for the PSV
fleet compared to 2008. In 2022, Eidesvik’s
Scope 1 emissions totalled 89,397 metric
tonnes CO2. This is a decrease of 7,887
tonnes compared to 2021. Overall, CO2
emissions per nautical mile was 0.337 tons
in 2022, which is the same level as 2021
(0.331 tons). CO2 emissions per operational
day has decreased from 29.84 tons in 2021
to 21.92 tons in 2022. Eidesvik aims to have
yearly reductions in these two performance
indicators. Due to the scope of operations
for offshore vessels, the GHG (Green House
Gas) emissions intensity indicators used by
the IMO, such as the AER (Annual Efficiency
Ratio), are not suitable, and Eidesvik has
chosen to monitor CO2 emissions per
nautical mile and operational day as this is
a better reflection of its development.
Emissions from Eidesvik’s vessels are
directly linked to energy efficiency, and the
focus is on:
• The Eidesvik Energy Efficiency
Programme blue:E (EEEP) - a set of
measures to reduce energy
consumption and GHG emissions
has been defined and implemented
on each vessel.
• Retrofitting – installing battery
hybrid systems and shore-based
power systems on our existing fleet
o 92% of our vessels in
operations have battery
hybrid systems installed
o 75% of our vessels in
operation can utilise shore-
based power
• Research and development of new
technologies and use of new green
fuels
Eidesvik’s continuous work to develop feasible approaches for large-
scale CO2 emission
reductions in our fleet has commenced with full speed in 2022. In collaboration with clients and
suppliers the company achieved important developments in its green innovation projects ShipFC,
Apollo and Retrofit.
Ship FC: In 2020 Eidesvik entered into the five year European joint development project ShipFC
where Viking Energy will be retrofitted with a 2 MW fuel cell running on green ammonia. The
ammonia fuel system will allow the vessel to sail solely on the zero-carbon fuel for up to 3,000
hours annually. Testing will take place while the vessel is on contract for Equinor and the project
encompasses 14 European partners.
The ShipFC project has received funding from the Fuel Cells and Hydrogen 2 Joint Undertaking
under grant agreement No 875156. This Joint Undertaking receives support from the European
Union’s Horizon 2020 research and innovation programme, Hydrogen Europe and Hydrogen
Europe research. www.shipfc.eu
Project Retrofit: Aker BP & Eidesvik - Eidesvik and E&P company Aker BP launched the ambitious
joint technology project “Retrofit” in 2021. Retrofit’s mission is to capture emission reductions of
70 percent or more on selected vessels. In 2022 the partners have worked to map available new
technologies from a cost-benefit perspective. As part of the project, Eidesvik entered into a MoU
with Aker BP and Alma in November 2021 to explore opportunities for utilizing Alma’s fuel cell
technology developed through the ShipFC project on two offshore support vessels: Eidesvik-owned
Viking Lady and Aker BP-owned NS Frayja currently under Eidesvik’s management, with the option
to include further vessels in the scope of the project as well. In 2022 Eidesvik has led the
completion of an extensive FEED study for both vessels.
15
Eidesvik recognizes that climate changes
can have risks on the company business
strategy. This is why Eidesvik in 2021
conducted a climate risk review in
accordance with the Task Force on Climate-
related Financial Disclosures (TCFD).
Please see the 2021 and 2022 Sustainability
reports for the full review.
Efforts go beyond focusing on carbon
emissions. The company aims to minimize
any forms of pollution to air and sea.
Eidesvik complies with all laws and
regulations related to waste management
and air pollution, and the company has
established a plan to be compliant with the
Ballast Water Management Convention.
Eidesvik uses LNG and low-sulfur emissions
to fuel its vessels, which result in less
emissions of SOx, NOx and PM. The aim is
to have zero spills, and the company has
systems in place to mitigate the risks of such
events happening. If spills do happen, the
incidents are reviewed so that the
organization can learn from them.
HEALTH AND SAFETY
Safety is Eidesvik’s number one priority.
The company’s personnel often operate
under challenging conditions, particularly
when working on board vessels. This
requires the highest levels of diligence to
ensure that the crews return home safe.
Eidesvik works systematically with health
and safety to mitigate risks that can expose
its employees and third parties to injuries or
health related challenges. The Top
Management Team is focused on incident
reporting, training, awareness work and
sharing best practice across the fleet to
prevent incidents from happening. The
company’s quality and safety system
“Eidesvik Management System” (EMS) is
certified by DNV GL and meets the
requirements of the ISM code, ISO
standards: 9001-2015, 14001-2015, MLC
2006 and ISPS Code.
Eidesvik’s Lost time incident rate (LTIR) was
0 in 2022. Absence due to illness was 5.1%
compared to 8.1% in 2021. Eidesvik is
focused on preventive actions, both related
to the physical and psycho-social working
environment, and closer follow-up from the
company and management to increase
attendance at work.
WORKING ENVIRONMENT
Eidesvik believes that creating a diverse
and inclusive working environment where all
employees feel valued and have equal
career opportunities is not only the right
thing to do, but also financially beneficial for
the company.
Eidesvik’s priorities in this area include:
• Securing an inclusive and safe
working environment for all.
• High focus on retaining and
developing employees.
• Ensure high quality leadership in all
levels of the organization.
• Maintaining a dynamic apprentice
program through the availability of a
wide range of trainee and cadet
positions.
• Supporting competence
development through a combination
of formal training, on the job training
and own initiative.
Eidesvik uses the Employee Net Promoter
Score as a measure for employee wellbeing.
Scoring ranges from minus 100 to 100. The
aim is a score above 30. In 2022, the score
was 26, which is a decrease from 37 in
2021. The main reason identified for the
decline is structural differences in pay rates
where pay rates in offshore are lower than
in other industries in need for the same
seafarer competence as us, for example the
aqua culture industry. Another reason
identified is fewer carrier opportunities
caused by the last years’ challenging
situation in the offshore oil and gas industry
in which we have not been able to grow our
fleet. During the last half of 2022, the
company arranged workshops with
employees from both sea and land to
develop improvement measures for
implementation in 2023. These include
amongst other new salary compensation
arrangements and leadership training
programs. The development of a structured
company career plan has also been started.
16
Eidesvik aims to give all employees the
opportunity to participate in annual
performance and career development
reviews. In 2022, 73% of employees
completed such reviews.
EQUALITY AND INCLUSION
Eidesvik considers it a competitive
advantage to have a diverse team, and does
not discriminate based on race, caste,
national origin, religion, age, disability,
gender, marital status, sexual orientation,
union membership or political affiliation. In
accordance with the Norwegian Equality and
Anti-Discrimination Act, the company has
developed an Equality Efforts Compliance
Procedure that covers our obligations
related to activity duty and reporting. VP
Human Relations is responsible for defining
targets and responsibilities. Through the
procedure, we use our annual employee
survey to investigate whether there is a risk
of discrimination. The survey results are
presented internally and discussed in detail
with union representatives and management
both onshore and offshore.
Together with union representatives and
management we define necessary
measures and actions for areas in which
risks are defined. Furthermore, Eidesvik
performs internal audits to investigate
compliance with policies related to working
environment and the company’s non-
tolerance for harassment. The
requirements of the Equality and Anti-
Discrimination Act are also integrated in
Eidesvik’s recruitment procedure. In 2022,
Eidesvik experienced zero breaches of its
Human Resources Policy.
At the end of 2022, Eidesvik employed 405
people, females accounted for 10% (42). 6%
of our seafarers were female. The male
domination of the shipping industry is
reflected in these figures. At the Top
Management level 50% were female and
46% of onshore personnel were female. No
employees at Eidesvik are employed on a
part-time or temporary basis.
4
https://eidesvik.no/wp-content/uploads/2022/04/EIOF-
Annual-Report-2021-1.pdf
Eidesvik analyses the gender pay gaps of its
employees. A salary comparison of
employees at all levels was published in the
company’s annual report for 2021
4
.
Eidesvik has guidelines in place for salary
placement and salary adjustment. The
guidelines are outlined in the company’s
Employee Handbook, which is based on our
HR policy and Code of Conduct. Eidesvik
determines each employee’s salary
individually after a fair judgement of the
persons’ qualifications, including
competence, performance, results and
responsibility.
The majority of Eidesvik’s employees are
seafarers. All seafarers are covered by
collective bargaining agreements between
the Norwegian Shipowners’ Association and
the seafarer’s unions, who set wage
agreements that a company cannot deviate
from. These agreements ensure equal
treatment in relation to wages and working
conditions.
0 female and 1 male have taken parental
leave in 2022.
A full description of the Company’s work
with equality and inclusion can be found in
the 2022 Sustainability report
5
.
LABOUR CONDITIONS AND HUMAN
RIGHTS
Eidesvik aims to carry out its business in a
way that supports and respects the
protection of international proclaimed
human rights. The company does not
engage in, or support the use of, child
labour, and support the elimination of all
forms of forced labour, as outlined in the
Code of Conduct. Eidesvik has measures in
place to ensure that all employees, onshore
and offshore, are working under conditions
that meet the requirements set out in the
International Labour Conventions and the
Maritime Labour Conventions. Freedom of
association and the right to collective
bargaining is respected and outlined in the
Code of Conduct. In 2022, Eidesvik did not
5
https://eidesvik.no/sustainability/
17
conduct operations in countries with
heightened risk of human rights violations.
To further expand its competence related to
human rights Eidesvik signed in 2022 the
Future-Proof Initiative
6
. Future-Proof is a
business and human rights collaboration
platform created by The Bergen Chamber of
Commerce and Industry and the Rafto
Foundation. The aim is to assist businesses
in complying with their human rights
responsibilities and enable knowledge
sharing within and across industries.
Eidesvik is committed to be an active
participant in this platform.
REPORTING UNDER THE
NORWEGIAN TRANSPARENCY ACT
On July 1, 2022, the Norwegian
Transparency Act entered into force. The
Act shall promote enterprises’ respect
for fundamental human rights and decent
working conditions in connection with the
production of goods and the provision of
services and ensure the general public
access to information regarding how
enterprises address adverse impacts on
fundamental human rights and decent
working conditions.
Eidesvik recognizes that the nature of our
business and the shipping industry does
propose a risk that our operations may
cause adverse impacts on labour conditions
and human rights in our value chain. In
accordance with the Norwegian
Transparency Act, Eidesvik commenced in
June 2022 a due diligence process to
identify, prevent or mitigate the company's
risk for, and actual negative impact on,
basic human rights and decent working
conditions including in the supply chain and
through our business relations. As part of
our due diligence procedure the company
will perform annual risk assessments where
inherent risk areas are identified, scored
and evaluated in the company’s risk
assessment tool.
No adverse impacts were identified in 2022.
A full account of the due diligence process,
6
See https://fproof.no/
defined risk areas and mitigating measures
is published on Eidesvik’s website
7
.
BUSINESS ETHICS AND ANTI-
CORRUPTION
Eidesvik is committed to operating with the
highest ethical standards in all its
operations. The Code of Conduct is the main
governing document outlining our principles,
rules and expectations regarding ethical
business practices. Eidesvik conducts its
business in compliance with all anti-bribery,
anti-corruption and anti-money laundering
laws, rules and regulations including, but
not limited to, the UK Bribery Act 2010, the
US Foreign Corrupt Practices Act 1977, the
Norwegian Penalty code section 276 a – 276
c and other legislation applicable to our
industry. Eidesvik has not been involved in
any legal proceedings associated with
bribery, corruption or anti-competition in
2022. When conducting operations in
countries with a higher risk of corruption, the
company conducts a risk assessment for
that specific country in line with established
policies and procedures.
Eidesvik has a whistleblowing function in
place, which all employees can utilise to
report breaches of the Code of Conduct or
any form of unethical business conduct.
7
https://eidesvik.no/sustainability/
18
The Board of Directors
ARNE AUSTREID (CHAIR OF THE
BOARD)
is a trained petroleum engineer and holds an
MBA from the University of Aberdeen, UK.
From January 2011 to December 2020 he
was the CEO of Sparebank 1 SR-Bank ASA.
He has previously worked for Transocean
ASA and Prosafe SE, offshore, onshore and
abroad, where his final position was
President and CEO of Prosafe SE. He has
sat on a number of boards, and is today
chair for North Sea Energy Park AS,
Westcon Group AS, Westcon Yards AS, GL
Gruppen AS, attending deputy board
member for OBOS, and is chair of the
nomination committee of Veidekke ASA.
Austreid is independent of the main
shareholder in the Company.
BJØRG MARIT EKNES (BOARD
MEMBER)
graduated with a Master in Business and
Economics from NHH in 1993, and has an
MBA from Bond University, Australia (2006),
and an Executive MBA from NHH (2021).
She has held various managing positions in
the Sparebanken Vest group from 1997 to
2021, and was part of the executive
management from 2013 to 2021. Since 2021
she has been director and part of the top
management at the Norwegian School of
Economics. She is, and has sat on, a
number of boards within finance and real
estate. Eknes is independent of the main
shareholder in the Company.
BORGNY EIDESVIK (BOARD
MEMBER)
is the co-owner and general manager of
Bømmelfjord AS, which owns 55% of
Eidesvik Invest AS. Eidesvik Invest AS owns
60%
of Eidesvik Offshore ASA. Borgny
Eidesvik is associated with the main
shareholder in the Company.
JOHN STANGELAND (BOARD
MEMBER)
is a mechanical engineer by education, and
has a BBA in economics and management
from University of Texas, Austin. He also
has an Executive MBA from BI and Nanyang
Technological University, Singapore from
2011. He was a shipbroker in Seabrokers
AS, Stavanger from 1990 to 1997, and then
a business developer in Eidesvik AS until
2003. Since 2004 he has been employed by
the base company NorSea Group AS, and
he has been CEO since 2012. Stangeland is
independent of the main shareholder in the
Company.
JOHNNY OLSEN (EMPLOYEE
ELECTED BOARD MEMBER)
graduated with a bachelor in nautic from
Stord/Haugesund University College.
Employeed in Eidesvik from 2004 and spent
6 years offshore before moving to a role
onshore. Has worked in HSEQ before taking
a role as technical inspector. Olsen is now
fleet manager for the Subsea and Wind
fleet.
KRISTINE SKEIE (BOARD MEMBER)
is general manager and co-owner of HK
Shipping Group AS, which wholly or partly
owns 24 bulk vessels. She has sat on
several boards, including Gruppen for
Nærskipsfart i Norges Rederiforbund and
Reach Subsea ASA (from 2018), and has
chaired the board of Karmsund Havn IKS
from 2012 to 2019. She was educated at
Norges Varehandelshøgskole (now part of
BI) and has further educations in board
work, organisation and management, and
tax law. Skeie is independent of the main
shareholder in the Company.
19
LARS EIDESVIK (BOARD MEMBER)
is the co-owner and general manager of Evik
AS, which owns 45% of Eidesvik Invest AS.
Eidesvik Invest AS owns 60% of Eidesvik
Offshore ASA. Lars Eidesvik is associated
with the main shareholder in the Company.
LAURITZ EIDESVIK (BOARD
MEMBER)
is co-owner and chair of Bømmelfjord AS,
which owns 55% of the shares in Eidesvik
Invest AS. Eidesvik Invest AS owns 60% of
Eidesvik Offshore ASA. He has nautical
training and experience as a ship’s officer,
a BA in economics and administration from
Stord/Haugesund University College from
2008, and an Executive MBA in Developing
and Managing Digital Organisations from BI
from 2020. Since 2008, he has held various
positions in Eidesvik AS within operations,
technical, HSE, strategy, and most recently
as chartering manager, leaving in the
summer of 2018 to join the family company
Bømmelfjord AS. Lauritz Eidesvik is
associated with the main shareholder of the
Company.
From left: Bjørg Marit Eknes, Borgny Eidesvik, Lauritz Eidesvik, Arne Austreid, Johnny Olson, Kristine Skeie,
John Stangeland, Lars Eidesvik
20
Report of the Board of Directors 2022
Eidesvik Offshore ASA’s (“Eidesvik”, the
“Company” or the “Group”) vision is to be a
powerhouse for future-oriented shipping and
marine operational solutions within green
platform supply vessels, offshore wind and
subsea, and to position the Company at the
front end of the development of zero
emission shipping solutions. Our main goal
is to increase and secure the Company’s
long-term financial and sustainable value
creation, and thereby create the basis for
further growth, secure jobs and increased
shareholder value. We seek to achieve this
by ensuring that our vessels have the
highest possible degree of long-term
employment on sustainable day rate levels.
2022 saw improvements in the OSV market
compared to 2021 and previous years. This
was driven by improvement in oil & gas
prices, increased investment decisions and
a emerging realisation and focus that oil &
gas needs to be a conduit and participant in
the transition to sustainable energy supply
and consumption and will continue to deliver
energy in the forceable future. Offshore
wind continued to see increased activity with
a large volume of capital looking to be
deployed in the space, but sufficient returns
is still being somewhat of a challenge. The
year also saw continued increase in interest
rates, increasing inflation, and limitations
and long lead times in the supply chain.
Absorption of the overcapacity of vessels in
Eidsvik’s key segments continued. This has
lead to increased utilisation and
improvement in rates in the term market,
although the rates continued to fluctuate
with the level of available vessels in the spot
market. Entering into 2023 the Group is
seeing a more steady incline in rates in term
contracts. All vessels in our key segments
were under contracts in 2022. The company
had four vessels in the seismic space. They
were all held for sale and in layup at the end
of 2022. One of these vessels was sold in
Q1 2023.
The company entered into a contract with
Dredging, Environmental and Marine
Engineering NV (DEME) for the sale of CSV
Viking Neptun in January 2022. The
transaction was completed in November
2022.
The majority of the company’s long- term
debt at year end was due December 31,
2023. This meant that at the end of the year
this debt was treated as short term debt. The
group has entered into a new loan
agreement with expiry February 28, 2026,
on March 28, 2023.
THE BUSINESS
At the end of 2022 the group operated 16
vessels, with 13 vessels wholly or partly
owned by the Eidesvik Group.
Eidesvik aim to charter the vessels mainly
on long-term contracts on sustainable day
rate levels in the Supply and Subsea/Wind
segments. At year end 2022, the Company
had four seismic vessels in layup.
Eidesviks’ activities are managed from the
headquarters in Langevåg at Bømlo. The
shipping business is organised in
accordance with the special tax rules for
shipping companies in Norway. The vessels
ar
e owned by various ship-owning
companies, and Eidesvik AS performs the
general and business management
functions for these companies.
The Gr
oup’s wholly-owned subsidiaries had
405 permanent employees at the end of the
year, and in addition there were 65
contracted workers. The Company and the
industry encourage women to seek a
maritime education. We currently have
several women in leading positions. As part
of an international industry, the employees
in the Group represent many nationalities.
Our focus is to make all employees,
regardless of nationality, gender and
cultural background, have equal career
opportunities in the Group, and we see
nothing to suggest that this is not the case.
21
HEALTH, SAFETY AND THE
ENVIRONMENT
In 2022, the Company has focused on
enhancing development of its work on
health, safety, and the environment. The
quality and safety system “Eidesvik
Management System” (EMS) certified by
DNV. EMS meet requirements of ISM code,
ISO standards: 9001-2015, 14001-2015,
MLC 2006 and ISPS Code.
Throughout 2022, our EMS are built on
“Simplified and improved safety
management”, and all of our operational
vessels are using updated manuals for
bridge, deck, engine, galley and crane
operations as applicable. We receive very
positive feedback from both users and
clients. Required revisions ongoing,
including new procedures as needed. Good
working environments are established at all
vessels, with focus on awareness and
monitoring of health, safety and
environmental aspects identified by
Eidesvik.
The management is continuously carrying
out awareness work within HSEQ, with a
particular focus on the exchange of lessons
learned, which facilitates continuous
improvement.
Absence due to illness in 2022 was 4.9 %.
This is a 3.2% point decrease from 2021 (8.1
%). The main part of the decrease from 2021
was related to stricter Covid-19 restrictions
in 2021. The Company is maintaining the
agreement with NAV on inclusive working
life, which aims to follow up on absence due
to illness.
The Company had, as in 2021, zero lost time
incident (LTI) in 2022. This underlines the
importance of a continuing strong focus on
HSE in all parts of the Company’s
operations, to ensure all our employees are
at same good health when travelling home
as they were when they were travelling for
work.
EXTERNAL ENVIRONMENT
Eidesvik has a targeted environmental focus
in its operations. The Company has
continued its efforts to develop
environmentally friendly and energy
efficient vessels.
Our operations at sea are operated in
accordance with international and national
laws and regulations. To reduce the risk of
accidents, we focus on preventive
maintenance, as well as manning the
vessels with highly qualified personnel.
Eidesvik is constantly working to reduce the
total emission balance associated with
operating our vessels.
The blue:E scheme, the Company’s
programme for environmentally friendly
operations, has continued with the same
focus and resource usage in 2022. The
blue:E is important to the Company’s goal of
running our business in the most
environmentally friendly whilst cost-
effective way. Awareness of energy
efficiency and its impact on both the
environment and costs is increasing, and
this focus has become an important part of
day-to-day operations.
All vessels in Eidesvik’s fleet are approved
according to the new IMO requirements for
energy efficiency. This is in line with the
Company’s blue:E initiative.
The ESI (Environmental Ship Index) is
recognised by the Norwegian Coastal
Administration and many ports as the basis
for environmental differentiation of
fees/rates. 11 of our vessels are registered
in ESI, all with a strong environmental
profile.
A separate ESG report has been prepared,
and an extract of the report is included in
the annual report. Please read more about
Eidesvik’s impact, and our actions for
reducing the impact, on the external
environment in the extract. The full report is
available on the Eidesvik website.
In addition, a separate HSEQ report has
been prepared, and is included in the annual
report.
SHAREHOLDERS, CORPORATE
GOVERNANCE AND MANAGEMENT
At year end, there were a total of 62,150,000
shares in the Company. At the end of the
22
year there were 2,291 shareholders in the
Company where foreign investors had a
2.45% stake. In 2022, the share was last
traded at NOK 9.00.
As of December 31, 2022, the Company
owned no own shares.
All information is provided in such a way that
all shareholders are treated equally. The
information is shared through stock
exchange announcements, press releases
and open presentations, and is also
available on the Eidesvik website.
The Group has an insurance agreement (the
“Agreement”) for physical persons that
previous had, currently has, or in the future
will hold positions as member or deputy
member of a board or a corresponding
governing body, CEO, other leader and/or
employee that may incur personal leader
responsibility. The Agreement cover their
partner as well in cases where the claim is
based on the insured personal leader
responsibility.
The Agreement is a group coverage for
Eidesvik Offshore ASA, including all
subsidiaries with ownership of 50% or more.
The Agreement applies to property damage
that may incur worldwide for business
related to shipping and that the insured
person is liable in damages for according to
applicable law in Norway. The sum insured
is MNOK 50 per insurance event and total
per year. Internal claims between the
companies are not covered.
The Agreement does not cover criminal acts
as breach of information protection, forge of
documents, embezzlement, theft, fraud,
betrayal, corruption, and/or unjustified gain.
The Agreement does not cover fines/day
fines, libels and/or remedy for noneconomic
loss, nor liabilities after the Nature Diversity
Act or property damage related to pollution
or tipping of waste.
The “Norwegian code of practice for
corporate governance” forms the basis for
the discharge of these duties by the Board
and management. Minor, company-specific
changes and adaptations have been made
to the code of practice. A separate
explanation has been provided in the annual
report and on the Eidesvik website.
PROFIT & LOSS, BALANCE SHEET
AND FINANCIAL RISK
The consolidated accounts have been
prepared in accordance with IFRS, as
approved by the EU.
The Company accounts for the parent
company Eidesvik Offshore ASA are
prepared in accordance with the Norwegian
Accounting Act and generally accepted
accounting principles in Norway.
Profit & loss
Consolidated operating income for Eidesvik
in 2022 was MNOK 918.5.8 (MNOK 587.8 in
2020), of which MNOK 269.7 is gain related
to the sale of CSV Viking Neptun). The
increase in revenue adjusted for the gain
was mainly due to improvement in rates.
Operating profit before depreciation and
amortisation (EBITDA) for 2022 were MNOK
494.2 (MNOK 178.7 in 2021). Adjusted for
the gain on the sale of Viking Neptun the
EBITDA was MNOK 223. Depreciation and
amortisation totalled MNOK 142.9 in 2022
(MNOK 64.2), whereof net MNOK 209.2 was
related to the reversed impairments on the
fleet. Profits from joint ventures were MNOK
-9.1 (MNOK -5.9). This gives a total
operating result of MNOK 406.7 in 2021
(MNOK 108.6). Adjusted for reversed
impairment and the gain on sale EIOF saw
an improvement in operating profit driven by
improvement in rates. We saw increase in
cost compared to previous year in personnel
expenses due to reintroduction of the ceiling
for net salary scheme for seamen and
increased crew on certain vessels.
Increased inflation is also affecting the
numbers negatively.
Due to observed indicators, such as
improved market conditions and change in
market interest rates, the vessels’ book
values have been tested for impairment and
reversal of previous impairments during the
year. A net reversal of previous impairment
of MNOK 209.2 has been recorded in 2022,
where MNOK 225.2 is reversal and MNOK
16.0 is impairment. Refer to note 12 for
further information.
23
The net financial result of MNOK -144.6 in
2022 (MNOK 77.9 in 2021) includes
financial income of MNOK 65.6 (MNOK
10.5). Financial and interest expenses were
MNOK -93.8 (MNOK -50.8.), and the net
gain/loss on currency and derivatives were
MNOK -116.4 (MNOK -37.6). The currency
loss was due to the movement in USD
against NOK due to a portion of the
Company’s debt being in USD. With the sale
of Viking Neptun the USD exposure is
substantially reduced.
Profit/loss after tax was MNOK 406.7 in
2022 (MNOK 30.7 in 2021.) and total
comprehensive income was MNOK 406.9
(MNOK 40.5).
For the parent company Eidesvik Offshore
ASA, the profit/loss after tax was MNOK 9.7
(MNOK -6.5).
Balance sheet
The consolidated book equity is MNOK 928
per December 31, 2022 (MNOK 521.1 per
December 31, 2021). This is 40% (19%) of
the Group’s total capital. For the parent
company, Eidesvik Offshore ASA, the equity
is MNOK 480.8 (MNOK 470.8).
Vessels account for MNOK 1,062.8 per
December 31, 2022 (MNOK 908.5 per
December 31, 2021), of the non-current
assets of MNOK 1,348.1 (MNOK 1,196.9).
The increase in vessel value is mainly due
to the reversal of previous impairment.
MNOK 80.7 (MNOK 1,022.5) are classified
as Assets held for sale, and contains the
four Seismic vessels. The reduction from
2021 is mainly due to the sale of Viking
Neptun. Current assets increased by MNOK
379.1, mainly due to the sale of Viking
Neptun which led to addition in cash of
approximately MNOK 400. Total assets are
MNOK 2,339.0 (MNOK 2,750.6), a reduction
of MNOK 411.5.
Broker values are used to support the
assessment and decisions made by value in
use calculations. Average broker value
conducted by two independent brokers
evaluate the consolidated part of the fleet
value free of charter to MNOK 1,809 (MNOK
1,710 at December 31, 2021, adjusted for
Viking Neptun) which indicates an excess
value before tax of MNOK 665 (MNOK 738,
adjusted for Viking Neptun) compared to the
book value of the vessels.
The Group’s non-current liabilities are
MNOK 97.1 per December 31, 2022 (MNOK
1,095.3 per December 31, 2021). The
decrease is due to the majority of the
Company’s long-term debt being classified
as short term as the due date is December
31, 2023. The Group has after the balance
sheet date refinanced its long-term debt at
March 28, 2023, with maturity February 28,
2026. In connection with the refinancing, a
prepayment of MNOK 410 has been made
with cash on hand reducing the debt
materially. Liabilities related to assets held
for sale are MNOK 112.4 (MNOK 840.7), and
the reduction is due to the sale of Viking
Neptun.
The parent company’s assets are MNOK
815.3 per December 31, 2022 (MNOK 646.0
per December 31, 2021). The company’s
assets consist mainly of investments in and
loans to subsidiaries, financial investments
and cash. The company has liabilities of
MNOK 334.8 (MNOK 175.2). This consists
of non-current liabilities of MNOK 332.4
(MNOK 165.0) and current liabilities of
MNOK 2.4 (MNOK 10.2). The company’s
equity is MNOK 480.5 (MNOK 470.8), which
gives an equity ratio of 59% (73%).
Cash flow
Cash and cash equivalents increased from
MNOK 330.4 December 31, 2021, to MNOK
655.7 December 31, 2022, whereof MNOK
69.8 was
restricted cash and funding
restricted for use towards the ShipFC
ammonia project.
Net cash flow from operating activities for
2022 was MNOK 208.9 (MNOK 151.3).
Net cash flow from investment activities of
MNOK 1,171.4 (MNOK 228.5) was mainly
due to the sale of Viking Neptun,
investments and periodic maintenance on
existing vessels and payment of long-term
receivables.
The Group has a negative cash flow from
financing activities of MNOK -1,061.8
(MNOK -480.8). This is mainly related to
24
repayment of the Viking Neptun debt, and
paid instalments and interests.
The parent company has cash and cash
equivalents of MNOK 437.0 (MNOK 138.2).
This is an increase of MNOK 298.8.
Profit allocation
The Board proposes that the profit for the
year of MNOK 9.7 for Eidesvik Offshore ASA
is transferred to other equity.
Going concern
The financial statements are prepared on
the basis of going concern.
Financial risk
Currency risk
In 2022, Eidesvik had its revenue in NOK,
USD and EUR. Operating costs are mainly
in NOK. Eidesvik is therefore exposed to
fluctuations in the exchange rates between
NOK and the other currencies. In order to
mitigate the risk, cash flow hedges have
been established by having parts of the
Group’s long-term financing in USD.
Forward contracts are also made where
parts of the operational income in USD and
EUR are presold with settlement in NOK.
Credit risk
Eidesvik’s customers are mainly solid
companies with good solvency. The risk that
the counterparties do not have the financial
capacity to fulfil their obligations is
considered low.
Liquidity risk
The liquidity position is assessed as
satisfactory as long term financing is now in
place till February 28, 2026. In addition all
vessels in our focus areas are on term
contracts securing cash flow going forward.
Other risks
Eidesvik is exposed to other risks, as market
and operational risks, including cyber
security risk. In addition, the Company
experience increase in both expenses and
lead time from suppliers, primarily as a
consequence of the current global increase
in inflation.
Please see Note 3 for further information.
FRAMEWORK CONDITIONS
Access to and development of highly
qualified personnel are vital to ensuring
good operation and delivery of an optimum
product, helping our customers to a better
overall result. In order to ensure that
Norwegian maritime competence is also
developed and utilised in the future, the
industry is dependent on stable and
predictable framework conditions. The
availability of training positions is vital to
building up expertise over time, even in a
cyclical industry.
Eidesvik currently employs both Norwegian
and international crew on board its vessels.
The entire petro maritime cluster, oil
companies, shipping firms, shipyards and
other oil service companies, will depend on
building up maritime competence in the
future.
Legislation on net pay schemes is a positive
move on the part of the political authorities.
However, Eidesvik believes that net pay
schemes should be further reinforced.
Historically, the Company has been at the
forefront of increasing the recruitment of
Norwegian seamen. Considerable resources
have been allocated to this work through
initiatives to increase the incentives for
young people to choose a maritime
education. The Company cooperates in
various forums to strengthen and enhance
Norwegian maritime competence. At the
same time, the industry is experiencing
increasing international competition, not
least when it comes to expertise and costs.
It is important for further investment in
Norwegian maritime competence in the
future that the framework conditions should
be organised in such a way as to make it
attractive for the industry to build up
Norwegian maritime competence over time.
25
CORPORATE SOCIAL
RESPONSIBILITY
The Company’s core values and ethical
policy are set out in “Ethical guidelines and
core values for Eidesvik Offshore ASA”, and
its social responsibility policy is covered by
the “Human rights policy” and
“Environmental policy”. These state that the
work of achieving the business goals must
be carried out to high ethical standard and
in a manner calculated to safeguard the
environment and society. This means that
we should act with respect and honesty
towards customers, suppliers, employees,
authorities, owners and society, and that the
Company and the individual should comply
with relevant legislation. The policy states
that the Company and the individual
employee should refrain from all forms of
corruption, and sets out how the Company’s
employees should act if they are offered
gifts or other benefits because of their
employment.
It is further stated that the Company and all
employees must comply with all recognised
rules for human rights, including refraining
from all forms of discrimination.
No breaches of the Company’s ethical
policies were recorded in 2022.
BUSINESS SEGMENTS AND
OUTLOOK
Eidesvik owns and operates vessels in the
three segments of Supply, Subsea/Wind and
Seismic.
Supply
At year end 2022, Eidesvik operated 8 large
supply vessels. Out of the supply vessels, 5
run on LNG, and all 8 have batteries and
hybrid solutions installed. Batteries and
hybrid solutions were installed on board the
8th vessel, Viking Prince, in January 2022.
Viking Lady commenced on a 3-year
contract for Aker BP in January 2022 with
options for extension. The vessel went in for
its 20-year docking in Q1 2022.
Viking Prince worked for Aker BP as a
substitute vessel during Viking Lady’s
docking in Q1 2022, and in the spot market.
In April 2022 the vessel commenced on a 6
months firm contract for the vessel with
Equinor. It is now on a firm contract till
December 2025 with Aker BP.
Viking Avant was on charter to Equinor
entire 2022, and will continue to be on a firm
contract with Equinor till December 2025
with options for extensions.
Viking Queen worked for Equinor for most of
2022. The vessel traded in the spot market
in December 2022 and went for docking in
February 2023. It is now on a long-term
contract for Wintershall Dea till May 2024
with options for extensions.
Viking Energy worked for Equinor entire
2022, as it has done since the vessel was
delivered in 2003. The firm contract for the
vessel is to April 2025 with options for
extensions.
Viking Princess worked for Wintershall
entire 2022. Wintershall Dea declared
options to extend the contract to January
2024, and has further options for
extensions.
The market saw improvement in 2022
compared to 2021 driven by improved oil
price and increased activity. There was a
substantial decrease in vessels in layup and
during the summer the spot rates
occasionally moved to levels not seen since
2014. At the end of the year the company
had one vessel in the spot market. This
vessel secured a new long-term contract in
2023.
The improvement in the market has been
slower to improve than expected but, it is
likely that 2023 will see continued rate
increases due to increased demand and
limited capacity of vessels. The day rates
are still a long way from defending
investment in any new build.
Operators’ preference for large and
environmental friendly supply vessels are
beneficial drivers for the Company’s supply
fleet and has assisted in securing solid long-
term contracts.
26
Subsea/Wind
Eidesvik currently has four vessels in the
Subsea/Wind segment, of which one is
owned in a JV with Subsea 7 (50/50) and
one was acquired in March 2023 in an entity
formed with Reach Subsea (50.1% owned
by Eidesvik).
Viking Neptun worked for Havfram until the
sale of the vessel to DEME Offshore was
completed in November 2022.
Viking Wind Power continued on its contract
with Siemens Gamesa all year. In Q1 2022,
Viking Wind Power was through installation
of batteries and hybrid solutions, docking,
and a major conversion towards the offshore
wind market.
Subsea Viking worked for PXGEO from April
and till February 2023. In March 2023, the
vessel entered a 5-year contract for Van
Oord in the offshore wind segment.
Seven Viking is on contract for Subsea 7 to
November 2025 with a 1-year option
thereafter.
Viking Reach is on a 6-year contract with
Reach Subsea.
2022 saw improvement in the subsea market
with multiple projects being brought forward
for investment decision. 2023 and onwards
are expected to be very busy in this
segment.
The offshore wind segment continue to
attract investment with substantial growth
expected in the coming years.
Seismic
Within this segment, Eidesvik owned four
vessels 100% at year end, whereof all were
in layup and classified as held for sale.
In March 2022, Eidesvik received a firm
bareboat contract with commencement in
April 2022 for Veritas Viking for 100 days,
with further options for extensions
Vantage, Viking Vision and Viking Vanquish
have been in layup throughout the year.
After year-end we have seen increased
interest from interested buyers. Viking
Vanquish is sold and was delivered to the
new owners in March 2023.
BØMLO, APRIL 26, 2023
Arne Austreid
Borgny Eidesvik
Lars Eidesvik
John Stangeland
Chair of the Board
Board member
Board member
Board member
Bjørg Marit Eknes
Lauritz Eidesvik
Kristine E. Skeie
Johnny Olson
Board member
Board member
Board member
Board member
Gitte Gard Talmo
CEO
27
Declaration by the Board of Directors
and CEO
The Board and the CEO have today reviewed and approved the annual report and the
consolidated annual accounts and notes for Eidesvik Offshore ASA as at December 31, 2022,
and for the year 2022, including consolidated comparative figures as at December 31, 2021,
and for the year 2021.
The annual accounts are submitted in accordance with the requirements of IFRS as adopted by
the EU and additional Norwegian requirements in the Securities Trading Act
The Board and CEO believe that the annual accounts for 2022 have been prepared
in accordance with applicable accounting standards, and that the information in the accounts
gives a true picture of the Group’s assets, liabilities, financial position and overall performance
as at December 31, 2022, and December 31, 2021. To the best of the Board’s and CEO’s
knowledge, the director’s report gives a true view of important events during the accounting
period and their influence on the annual accounts. To the best of the Board’s and CEO’s
knowledge, the description of the most important risk and uncertainty factors the business is
facing in the next accounting period, as well as the description of significant transactions
with related parties, gives a true account.
BØMLO, APRIL 26, 2023
Arne Austreid
Borgny Eidesvik
Lars Eidesvik
John Stangeland
Chair of the Board
Board member
Board member
Board member
Bjørg Marit Eknes
Lauritz Eidesvik
Kristine E. Skeie
Johnny Olson
Board member
Board member
Board member
Board member
Gitte Gard Talmo
CEO
28
CONSOLIDATED STATEMENT OF PROFIT AND LOSS
(NOK 1,000)
2022
2021
Note
1.1-31.12
1.1-31.12
Freight income
634 722
569 481
Other income
5
283 826
18 317
Total operating income
4
918 547
587 798
Payroll expenses
11
302 425
273 072
Other operating expenses
6
121 910
136 014
Total operating expenses
424 335
409 086
Operating profit before depreciation and impairment
494 213
178 712
Depreciation
12,22
142 907
207 961
Impairment of tangible fixed assets
12
-209 237
-143 797
Operating profit before profit from joint ventures
560 543
114 549
Profit from joint ventures
7
-9 120
-5 916
Operating profit
551 423
108 633
Financial income
8
14 421
10 502
Financial expenses
8
-93 845
-69 087
Changes in market value, derivatives
8
51 142
18 282
Net currency gain/loss
8
-116 357
-37 610
Net financial items
-144 639
-77 912
Profit/loss before taxes
406 784
30 720
Tax costs
9
-49
16
Profit/loss for the year
406 736
30 737
Attributable to:
The parent company’s shareholders
346 056
-15 746
Non-controlling interests
7
60 680
46 482
Profit/loss for the year
406 736
30 737
Earnings per share
10
5.57
-0.25
Diluted earnings per share
10
5.57
-0.25
29
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(NOK 1,000)
2022
2021
Note
1.1-31.12
1.1-31.12
Statement of comprehensive income
Profit/loss for the year
406 736
30 737
Items that will not be reclassified via profit/loss in later
periods
Actuarial gains/losses
213
-55
Change in value financial investments
21
0
9 900
Total comprehensive income for the year
406 948
40 581
Attributable to:
The parent company’s shareholders
346 268
-5 901
Non-controlling interests
60 680
46 482
Total comprehensive income for the year
406 948
40 581
30
CONSOLIDATED STATEMENT OF BALANCE SHEET
(NOK 1,000)
Note
31.12.2022
31.12.2021
Assets
Non-current assets
Vessels
12
1 062 780
908 507
Buildings, land and other operating assets
12
18 547
20 524
Financial derivatives
23
30 065
15 791
Right-of-use asset
22
55 489
50 502
Investments in joint ventures
7
137 882
147 525
Shares
21, 7
3 118
2 595
Pension funds
18
417
282
Other non-current receivables
13
39 769
51 178
Total non-current assets
1 348 068
1 196 904
Current assets
Accounts receivable
14
141 759
130 942
Derivatives
23
32 115
1 613
Other current assets
15
80 744
68 265
Cash and cash equivalents
16
655 653
330 401
Total current assets
910 271
531 220
Assets held for sale
4, 7, 12, 27
80 695
1 022 459
Total assets
2 339 034
2 750 583
31
CONSOLIDATED STATEMENT OF BALANCE SHEET
(NOK 1,000)
Note
31.12.2022
31.12.2021
EQUITY AND LIABILITIES
Equity
Equity attributable to the Company’s shareholders:
Share capital
17
3 108
3 108
Share premium
177 275
177 275
Other paid-in equity
629
629
Other reserves
-377
-590
Other equity
684 167
338 112
Total equity majority shareholders
864 802
518 534
Non-controlling interests
63 245
2 565
Total equity
928 047
521 098
Liabilities
Non-current liabilities
Interest-bearing debt
20
43 169
1 044 199
Lease liabilities
22
53 973
51 147
Total non-current liabilities
97 142
1 095 346
Current liabilities
Interest-bearing debt
20
989 534
94 379
Derivatives
23
0
6 677
Lease liabilities
22
4 217
3 256
Accounts payable
30 022
48 234
Other current liabilities
19
177 707
140 929
Total current liabilities
1 201 480
293 474
Liabilities related to Assets held for sale
22
112 365
840 666
Total liabilities
1 410 988
2 229 485
Total equity and liabilities
2 339 034
2 750 583
BØMLO, APRIL 26, 2023
Arne Austreid
Borgny Eidesvik
Lars Eidesvik
John Stangeland
Chair of the Board
Board member
Board member
Board member
Bjørg Marit Eknes
Lauritz Eidesvik
Kristine E. Skeie
Johnny Olson
Board member
Board member
Board member
Board member
Gitte Gard Talmo
CEO
32
CONSOLIDATED STATEMENT OF CASH FLOW
(NOK 1,000)
Note
2022
2021
1.1-31.12
1.1-31.12
Cash flow from operations
Payments from customers
613 906
539 955
Payment to suppliers, employees and others
-473 198
-475 091
Payments from reimbursement scheme, Norwegian seamen
64 950
86 253
Interest received/paid
3 338
70
Net paid and refunded taxes
-135
74
Net cash flow from operating activities
208 861
151 261
Cash flow from investment activities
Sales of non-current assets
12
1 230 746
23 750
Received long-term receivables
13
44 102
38 711
Sales of other investments
12
0
259 161
Purchase of tangible fixed assets
12
-103 410
-93 135
Net cash flow from investment activities
1 171 438
228 487
Cash flow from financing activities
Installment financial lease
22
-4 890
-3 714
Realised currency derivatives
23
0
23 568
Repayment of debt
20
-965 921
-420 514
Paid interest
20
-91 009
-80 163
Net cash flow from financing activities
-1 061 820
-480 824
Currency gain/loss on cash and cash equivalents
6 773
2 294
Net increase (decrease) in cash and cash equivalents
325 252
-98 782
Cash and cash equivalents at start of period
16
330 401
429 183
Cash and cash equivalents at end of period
16
655 653
330 401
33
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(NOK 1,000)
Majority share
Share
capital
Share
premium
Other
reserves
Other
paid-in
equity
Other
equity
Total
Minority
share
Total
equity
Translation
differences
Equity at 01.01.2021
3 108
177 275
-535
629
-9 900
411 087
581 664
-101 145
480 519
Result for the year
0
0
0
0
0
-15 746
-15 746
46 482
30 737
Actuarial effects
0
0
-55
0
0
0
-55
0
-55
Other adjustments *
0
0
0
0
9 900
0
9 900
0
9 900
Total comprehensive
income
0
0
-55
0
9 900
-15 746
-5 901
46 482
40 581
Change in non-controlling
interests **
0
0
0
0
0
-57 230
-57 230
57 230
0
Equity at 31.12.2021
3 108
177 275
-590
629
0
338 112
518 534
2 565
521 098
Result for the year
0
0
0
0
0
346 056
346 056
60 680
406 736
Actuarial effects
0
0
213
0
0
0
213
0
213
Total comprehensive
income
0
0
213
0
0
346 056
346 268
60 682
406 948
Equity at 31.12.2022
3 108
177 275
-377
629
0
684 167
864 802
63 245
928 047
*The NOK -9,900 thousand are translation differences of the financial investments on the consolidated
statement of financial position (reversed in 2021 due to sale of the financial investments).
** As of September 1, 2021, Eidesvik bought the non-controlling shares in Eidesvik Supply AS and holds 100%
of the shares in this company, hence the re-distribution of capital from minority to other equity.
34
NOTES TO THE CONSOLIDATED ACCOUNTS
Note 1
Eidesvik Offshore ASA (the Company) and its subsidiaries (collectively the Group) offer services within the
maritime sector. The Group operates in several segments where the main segments are seismic, subsea and
platform supply vessel services. The Group’s vessels are located across large parts of the world.
Eidesvik Offshore ASA is a public limited company registered in Norway and headquartered at Langevåg in
Bømlo municipality. Eidesvik Offshore ASA is listed at the Oslo Stock Exchange and is subject to the provisions
of the Public Limited Liability Companies Act with regards to limitations in shareholders’ liability to the
Company’s creditors. The annual accounts were submitted by the Board on April 26, 2023, and approved for
publication. The General Meeting approves the final annual accounts and is authorised to require changes to
the accounts before it is approved. All amounts are presented in Norwegian kroner (NOK) and are rounded to
the nearest thousand unless otherwise specified.
Information on the ultimate parent company is presented in Note 24.
Overview of Group relations:
Company Reg. office Owner share
Eidesvik Shipping AS Bømlo 100%
Eidesvik AS Bømlo 100%
Eidesvik MPSV AS Bømlo 100%
Eidesvik Shipping International AS Bømlo 100%
Eidesvik Subsea Vessels AS Bømlo 100%
Eidesvik Management AS Bømlo 100%
Eidesvik Maritime AS Bømlo 100%
Eidesvik Neptun AS Bømlo 74.75%
Eidesvik Neptun II AS Bømlo 74.75%
Eidesvik Supply AS Bømlo 100%
Hordaland Maritime Miljøselskap AS Bømlo 91%
Norsk Rederihelsetjeneste AS Bømlo 100%
Eidesvik Shipping II AS Bømlo 100%
Eidesvik UK LTD UK 100%
35
Joint Ventures:
Eidesvik Seven AS Bømlo 50%
Eidesvik Seven Chartering AS Bømlo 50%
Please refer to Note 7 for further information.
In addition, the Group owns the following shares:
Simsea Holding AS Haugesund 10.4%
Bleivik Eiendom AS Haugesund 22.6%
Eidesvik Ghana Ltd. Ghana 49%
The total book value of these amounts to MNOK 3.1 and is not considered material. Please refer to Note 21
for further information.
NOTE 2 – ACCOUNTING PRINCIPLES
The most important accounting principles used in the preparation of the consolidated accounts are described
below. These principles are applied in the same way in all periods presented, unless otherwise stated in the
description.
2.1 Main principles
The consolidated accounts of the Eidesvik Offshore Group have been prepared in accordance with International
Financial Reporting Standards (IFRS), as adopted by the EU, and interpretations adopted by the International
Accounting Standards Board (IASB).
The consolidated accounts have been prepared on the basis of the historical cost principle, however, it has
been modified for the following: financial derivatives and financial assets classified as “fair value through the
profit and loss account”, which have been valuated at fair value.
An asset is presented as short-term if it is expected to be realised within twelve months of the balance sheet
date as part of ordinary operations, if it is an asset owned with purchase and sale as its main purpose, or if it
is cash or cash equivalents.
Debt is presented as short-term if there is no unconditional right to postpone payment at least twelve months
from the balance sheet date, or it is a debt with purchase and sale as its main purpose. Long-term debt is
reclassified as short-term debt when there are 12 months left to maturity. The same applies to the first year’s
repayment on long-term debt maturing within twelve months from the balance sheet date.
The accounts are prepared in accordance with IFRS. This means that the management has used estimates and
assumptions that have affected assets, debt, income, expenses, and information on potential liabilities.
Cash flow statements are prepared according to the direct method.
36
2.2 Principles of consolidation
The consolidated accounts include parent company Eidesvik Offshore ASA and companies controlled by
Eidesvik Offshore ASA. Control is obtained when the Group is exposed to, or is entitled to, variable return
resulting from the Group’s involvement, and the Group is able to influence the return through its influence in
the Company.
a) Subsidiaries
Subsidiaries are all entities where the Group has controlling influence on the entity’s financial and operational
strategy, normally through owning more than half the voting capital. When determining whether there is
controlling influence, one includes the effect of potential voting rights which can be exercised or converted on
the balance sheet date. Subsidiaries are consolidated from the time control is transferred to the Group, and
are excluded from consolidation when control ceases. Stocks and shares in subsidiaries are recorded at cost
and eliminated against the equity of the subsidiary at the time of takeover or establishment.
b) Associates/Joint ventures
The Group’s investment in its associates and joint ventures are accounted for under the equity method of
accounting. An associate is an entity in which the Group has significant influence, but which is not a subsidiary.
A joint arrangement is either a joint operation or a joint venture. Companies where the Group has joint control
with another party, are defined as joint ventures, as it has rights to the net assets of the arrangement. Joint
ventures exist if there is 50/50 ownership, or if it is otherwise regulated so that the parties have joint control.
The Group does not capitalise its share of deficits if this means that the capitalised value of the investment
will be negative (including unhedged receivables on the entity), unless the Group has assumed liabilities or
provided guarantees for the joint venture’s liabilities.
c) Non-controlling interests
Non-controlling interests’ (minority interests) share of the equity is shown on a separate line in the Group’s
equity. Non-controlling interests include the minority share of the capitalised value of subsidiaries, including
the share of identifiable added value at the time of acquisition of a subsidiary.
2.3 Segment Information
Segments are reported in the same way as for reporting to the Company’s supreme decision maker. The Board
is defined as the Company’s supreme decision maker, and is responsible for allocating resources and
assessment of earnings in the various segments. The Group’s reporting format is associated with business
areas, secondary information associated with geographical areas is not used, as this does not make sense
strategically. The three primary operating segments are divided into Supply vessels (PSV), Subsea/Wind, and
Seismic. In addition to this, other activities, which includes, among other things, vessels under construction, is
placed in a separate segment.
As the joint ventures are significant with regard to the core activities, gross figures from underlying companies
are included in segment information.
2.4 Conversion of foreign currencies
a) Functional currency and presentation currency
The accounts of the individual entities in the Group are measured in the currency mainly used in the economic
area where the entity operates (functional currency). The consolidated accounts are presented in Norwegian
kroner (NOK), which is both the functional currency and the presentation currency of the parent company. In
order to calculate the share of profit from joint ventures, balance sheet figures in a different currency are
translated at the exchange rate of the balance sheet date, while profit and loss items are translated at the
quarterly average exchange rate. Translation differences are recognised as other income or costs directly in
the equity.
b) Transactions and balance sheet items
Transactions in foreign currencies are translated to the functional currency using the transaction exchange
rate. Currency gain and loss occurring when paying such transactions, and when translating monetary items
(assets and liabilities) in foreign currencies at year end on the balance sheet date, are recognised. Monetary
37
items and liabilities in other currencies are translated at the exchange rate of the balance sheet date. Currency
gains and losses are included in the income statement as “Net currency gain/loss”.
2.5 Vessels, depreciation and other fixed assets
Vessels and other fixed assets are recognised at historical cost minus accumulated depreciation and
impairments. Each part of the asset that has material share of the total cost is depreciated separately and
linearly over the useful life of the asset. Components with the same useful life are depreciated as one
component. The depreciation period and method are evaluated at each balance sheet date to ensure that the
method and the period used correspond with the financial realities for the asset. The same applies to scrap
value, which is subject to an annual assessment.
Estimated useful life:
Vessels 15-30 years
Property/fixtures 5-20 years
Equipment 3-5 years
Periodic maintenance 30-60 months
Port facilities N/A
At the time of delivery for new vessels, an amount corresponding to the expected cost at the first ordinary
classification/periodic maintenance is separated. This amount is depreciated over the period until the next
docking date. Costs associated with subsequent periodic maintenance are capitalised and depreciated until the
next periodic maintenance, generally over 30–60 months. Costs of ongoing maintenance and minor repairs and
maintenance are expensed as they incur.
2.6 Assets held for sale
Non-current assets held for sale consist of vessels that have been decided to be disposed of, by sale or
otherwise. Noncurrent assets classified as held for sale are measured at the lower of their previous carrying
amount and their fair value less costs of disposal. Any excess of the carrying amount over the fair value less
cost of disposal is recognized as an impairment loss. Depreciation of such assets is discontinued as from
their classification as held for sale.
Leases
The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract
conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
Group as a lessee
The Group applies a single recognition and measurement approach for all leases, except for short-term leases
and leases of low-value assets. The Group 9ecognized lease liabilities to make lease payments and right-of-
use assets representing the right to use the underlying assets.
i)Right-of-use assets
The Group 9ecognized right-of-use assets at the commencement date of the lease (i.e., the date the underlying
asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and
impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets
includes the amount of lease liabilities 9ecognized, initial direct costs incurred, and lease payments made at
or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on
a straight-line basis over the shorter of the lease term and the estimated useful life of the assets, as follows:
Buildings 0,5-32 years
Vehicles 8-17 months
If ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the
exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.
38
ii) Lease liabilities
At the commencement date of the lease, the Group recognises lease liabilities measured at the present value
of lease payments to be made over the lease term. The lease payments include fixed payments (including
insubstance fixed payments) less any lease incentives receivable, variable lease payments that depend on an
index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also
include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments
of penalties for terminating the lease, if the lease term reflects the Group exercising the option to terminate.
Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are
incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.
In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease
commencement date because the interest rate implicit in the lease is not readily determinable. After the
commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced
for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a
modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments
resulting from a change in an index or rate used to determine such lease payments) or a change in the
assessment of an option to purchase the underlying asset.
iii) Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition exemption to its short-term leases of machinery and
equipment (i.e. those leases that have a lease term of 12 months or less from the commencement date and do
not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of
office equipment that are considered to be low value. Lease payments on short-term leases and leases of low-
value assets are recognised as expense on a straight-line basis over the lease term.
Group as a lessor
Leases in which the Group does not transfer substantially all the risks and rewards incidental to ownership of
an asset are classified as operating leases. Rental income arising is accounted for on a straight-line basis over
the lease terms and is included in revenue in the statement of profit or loss due to its operating nature. Initial
direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the
leased asset and recognised over the lease term on the same basis as rental income. Contingent rents are
recognised as revenue in the period in which they are earned.
2.7 Impairment of fixed assets
The book value of tangible fixed assets is assessed for impairment when events or changes in circumstances
indicate that book value cannot be recovered. If such indications are discovered, and the book value exceeds
the recoverable amount, the asset is impaired to the recoverable amount, which for tangible fixed assets is the
higher of expected net sales price and value in use. Value in use is calculated as the present value of future
cash flows. If the reason for the impairment lapses at a later time, and the lapse can be tied to an event taking
place after the impairment is recognised, the previous impairment is reversed.
2.8 Sale of vessels
Profit or loss on the sale of vessels is recorded on the line of other income.
2.9 New builds
Vessels under construction are capitalised as instalments are paid, along with costs directly associated with
the construction, such as supervision, other construction costs and interest on external financing during the
construction period. The capitalised value is reclassified to vessels when the vessel is delivered from the
shipyard and is ready for use. Depreciation of vessels starts on the same date.
39
2.10 Financial assets
Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value
through other comprehensive income (OCI), and fair value through profit or loss. Fair value through other
comprehensive income (OCI) is not relevant for the Group.
The Group uses derivatives such as currency contracts and interest swaps to reduce the risk associated with
currency and interest rate fluctuations. The derivatives are presented as an asset with a positive value or a
liability with a negative value.
a) Financial assets at fair value through profit and loss
A financial asset is classified in this category if it is acquired primarily to make a profit from short-term price
fluctuations, or if the management chooses to classify it in this category. Derivatives are also classified as ‘held
for trading’. Assets in this category are classified as current assets if they are held for trading or if they are
expected to be realised within 12 months after the balance sheet date.
Profit or loss from changes in fair value of assets classified as “financial assets at fair value through profit and
loss”, including interest income and dividends, is included in the income statement under “change in value,
derivatives” in the period where they occur.
b) Financial assets at amortised cost
In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs
to give rise to cash flows that are “solely payments of principal and interest” (“SPPI”) on the principal amount
outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. Financial
assets with cash flows that are not SPPI are classified and measured at fair value through profit or loss,
irrespective of the business model. Loans and receivables are non-derivative financial assets with fixed
payments that are not traded on an active market. They are classified as current assets, unless they mature
more than 12 months after the balance sheet date. In such cases, they are classified as non-current assets.
Loans and receivables are classified as accounts receivable and other receivables on the balance sheet.
Ordinary acquisitions and sales of investments are recognised at the date of the transaction. All financial assets
that are not recognised at fair value through profit and loss are initially recorded at fair value plus transaction
costs. The exception is accounts receivable, which are recognised for the first time at the transaction price in
accordance with IFRS 15, ref. IFRS 9.1.5.3. Financial assets recognised at fair value through profit and loss
are recognised on acquisition at fair value and transaction costs are posted to expenses. Investments are
removed from the balance sheet when the entitlement to cash flows from the investments cease, or when such
entitlement is transferred and the Group has basically transferred all risk and all potential profit from ownership.
Financial assets available for sale and financial assets at fair value through the profit and loss account are
valuated at fair value after the first recognition. Loans and receivables are recognised at amortised cost using
the effective interest method.
The Group recognises an allowance for expected credit losses (ECLs) for all debt Instruments not held at fair
value through profit or loss. ECLs are based on the difference between the contractual cash flows due in
accordance with the contract and all the cash flows that the Group expects to receive, discounted at an
approximation of the original effective interest rate. The expected cash flows will include cash flows from the
sale of collateral held or other credit enhancements that are integral to the contractual terms.
2.11 Derivatives and hedging
The Group does not use accounting hedging, and none of the Group’s derivatives are designated hedging
instruments. The Group recognises derivatives at fair value with value changes through profit/loss. The purpose
of the derivatives is to secure the Group’s cash flow against fluctuations in interest and exchange rates. Refer
to Note 23 for an overview of the Group’s derivatives at 31.12.2022.
40
2.12 Accounts receivable
Accounts receivable are measured the first time at the transaction price in accordance with IFRS 15. For
subsequent measurements, accounts receivable is assessed at amortised cost determined by using the
effective interest method, less provision for expected loss. The Group has chosen to apply the practical
simplification approach to calculate losses on accounts receivable. The group has established a provision
model that is based on historical credit loss experience, adjusted for forward-looking factors specific to the
debtors and the economic environment. The group has historical had minor losses on trade receivables. See
Notes 3 and 14.
2.13 Cash and cash equivalents
Cash and cash equivalents consist of cash, bank deposits, and other short-term and easily negotiable
investments with a maximum of three months’ original maturity and overdraft facilities. In the balance sheet,
overdraft facilities are included in loans under short-term liabilities.
2.14 Share capital
Ordinary shares are classified as share capital.
Expenses directly associated with issuing new shares or options with tax deductions, are recorded as reduction
in received consideration in equity (premium on shares).
2.15 Accounts payable
Payables are measured at fair value at the first recognition. For subsequent measurements, payables are
assessed at amortised cost determined by using the effective interest method.
2.16 Loans
Loans are recognised at the accrued amount when the loan is disbursed, less transaction costs. In subsequent
periods, loans are recognised at amortised cost using the effective interest method. The difference between
the disbursed loan amount (minus transaction costs) and the redemption value is recognised over the term of
the loan.
When loans are renegotiated, a view is taken as to whether the renegotiated loan should be treated as a
continuation of the old loan or as a new loan (IFRS 9.3.3.1-9.3.3.3). The main rule of IFRS 9.3.3.1 is that a
financial liability should only be derecognised in cases where the liabilities specified in the contract have been
discharged, cancelled or expired. When a company has its debts renegotiated without a change of lender,
however, the old loan is derecognised and a new loan recognised if the renegotiation involves significant
changes in the conditions related to the debt. If there are no significant changes, the difference between the
present value of the modified cash flow and the original amortised cost is recognised through profit/loss (see
Note 8).
2.17 Pension liabilities, bonus schemes and other compensation schemes for
employees
a) Pension liabilities
The companies in the Group have different pension schemes. Pension schemes are mainly financed through
payments to insurance companies or pension funds. The Group’s pension schemes are a defined contribution
scheme and a defined benefit plan. A defined benefit plan is typically a pension scheme which defines a pension
payment an employee will receive on retirement. Pension payments normally depend on several factors, such
as age, number of years in the company, and salary.
The recognised liability associated with a defined benefit plan is the present value of the defined benefit on the
balance sheet date minus the fair value of the pension funds (in cases where the scheme is hedged). The
pension liability is calculated annually by an independent actuary using a linear accrual method. The present
value of the defined benefit is determined by discounting estimated future disbursements based on the interest
on corporate bonds with high credit rating using OMF interest rates.
41
Changes in benefits from the pension plan are recorded as income or charged to expenses on an ongoing basis,
unless the rights under the new pension scheme are conditional on the employee remaining in service for a
specified period in the vesting period. In this case the cost associated with the changed benefit is amortised
on a linear basis over the vesting period.
b) Bonus agreements and severance pay
In some cases, employment agreements are made which give the right to bonus in relation to fulfilment of
defined financial and non-financial criteria, as well as agreements which give the right to severance pay if the
employer terminates the employment. The Group raises provisions in cases where there is a formal obligation
to make disbursements.
2.18 Provisions
The Group raises provisions for environmental improvements and legal requirements when: There is a statutory
or self-imposed obligation arising from previous events, there is a strong likelihood that the obligation will have
to be met in the form of a transfer of financial resources, and the size of the obligation can be estimated with
a sufficient degree of reliability.
In cases where there is more than one obligation of the same nature, the probability of the obligation having to
be met will be determined by assessing the group as a whole. Provisions for the Group are raised even though
the probability of settlement with regard to the individual elements in the group is low.
Provisions are measured at present value of expected disbursements to fulfil the obligation. A discount rate
before tax is used which reflects the current market situation and risk specific to the obligation. The increase
in the obligation due to changes in time value is recorded as interest expenses.
2.19 Income and expense recognition principles
Income from the sale of goods and services is measured at fair value, net of commission, rebates and discounts.
Intragroup sales are eliminated. Income is recognised as follows:
a) Sale of services
Except for the seismic fleet, most of the Group’s vessels have been contracted on time charters (TC) throughout
the year. This means that the charter is agreed as a lease of a vessel with crew. The charterer decides (within
agreed limitations) how the vessel is to be used. The time charter lapses in periods when the vessel is not
operational (is “off hire”), e.g. during repairs. The shipping company pays for the crew, supplies, insurance,
repairs, administration, etc., while the charterer pays the “voyage-dependent” expenses such as bunkers, port
fees and expenses for loading and unloading.
In addition to leasing the vessel, there may be agreements for additional services in the form of hiring extra
crew, sale of provisions and coverage of other operating expenses.
Lease income for leasing vessels is recognised on a linear basis through the lease period. The lease period
starts from the date when the vessel is at the lessee’s disposal, and ends with its agreed return.
Lease of crew and payments to cover other operating expenses are recognised on a linear basis through the
contract period
When a contract is cancelled, the remaining contract is recorded as income when the vessel is returned.
b) Interest income
Interest income is recognised proportionally over time in accordance with the effective interest method. When
receivables are written down, the capitalised value is reduced to the recoverable amount. The recoverable
amount is the estimated future cash flow discounted at the original effective interest rate. After impairment, the
interest income is recognised on the basis of the original effective interest rate.
c) Dividend income
Dividend income is recognised when this has been determined by the General Meeting.
42
2.20 Public subsidies
Subsidies from the net pay scheme and the reimbursement scheme for seamen are recorded as a cost reduction
(under “payroll expenses”).
2.21 Dividends
Disbursements of dividends to the Company’s shareholders are classified as debt from the date when the
dividend is determined by the General Meeting.
2.22 Events after the balance sheet date
New information after the balance sheet date on the Company’s financial position on that date has been
considered in the annual accounts. Subsequent events that do not affect the Company’s financial position on
the balance sheet date, but will affect it in the future, are reported if they are significant.
2.23 Earnings per share accruing to the parent company’s shareholders
The calculation of earnings per share is based on the majority share of net profit, using the weighted average
outstanding number of shares through the year. The diluted earnings per share are based on the majority share
of the net profit using the average outstanding number of shares and outstanding options.
2.24 Taxes
Taxes are expensed as they are incurred. The tax costs consist of tax payable and the change in deferred
taxes. Deferred tax/deferred tax assets are calculated by the liability method. Deferred tax/deferred tax assets
are calculated based on tax rates and tax legislation which has been adopted (or adopted for all practical
purposes) on the balance sheet date, and which is assumed to be used when the deferred tax is settled.
Deferred tax/deferred tax assets are calculated per tax area and is presented gross in the balance sheet.
Deferred tax assets are recognised to the extent that it is likely that there will be taxable income in the future,
and that the temporary differences can be deducted from this income.
The parent company and some other companies in the Group are subject to ordinary taxation. Several
companies in the Group are subject to tonnage tax, classified as an operating expense and not in accordance
with IAS 12
Taxes abroad are recorded in the periods in which they are incurred. To the extent that tax is calculated on the
basis of income, this is classified as an income reduction and presented together with operating income. Taxes
abroad calculated on the basis of net profit are classified as tax costs.
2.25 Discontinued operations – assets and liabilities held for sale
Non-current assets (or disposal groups) are classified as ‘held for sale’ when the capitalised amount is mainly
realised through a sales transaction, and a sale is considered highly likely. They are measured at the lower of
capitalised value and fair value minus sales costs.
2.26 Changes in accounting policies
The accounting principles applied are consistent with the principles used in previous periods.
43
2.27 Significant accounting estimates and matters associated with uncertainty in
estimates
Preparing accounts in accordance with applicable standards and practice requires the management to prepare
estimates and make assessments that affect recorded assets and liabilities as well as information on contingent
assets and latent obligations on the reporting date, including income and expenses for the reported period. The
final outcomes may differ from the estimates. Some amounts included in or affecting the accounts and
associated notes require estimates, which in turn mean that the Group has to make assessments with regard
to values and matters which are not known at the time of preparing the accounts. A significant “accounting
estimate” could be defined as an estimate which is important to giving a true picture of the Group’s financial
position, but is also the result of difficult, subjective and complex assessments made by the management. Such
estimates are often uncertain by nature. The management reviews such estimates on an ongoing basis, based
on both history and experience, but also from consultations with experts, trend analyses, and other methods
which are considered relevant for each estimate. Estimates and assessments that could have a significant
effect on the accounts are described below.
a) Vessels
- Economic life/useful life
The level of depreciation depends on the estimated economic life of the vessels. The estimate is based on
history and experience related to the vessels which are included in the Group. The Group’s main strategy is to
keep the vessels until they are scrapped. However, there are ongoing evaluations where the main strategy can
be deviated from when financial conditions dictate. The estimate is reviewed each year. A change in the
estimate will affect depreciation in future periods.
- Residual value at the end of economic life
The level of depreciation depends on the estimated residual value on the balance sheet date. Expected residual
value is based on the knowledge of scrap values for vessels. The scrap value is dependent on steel prices.
The estimate of scrap value is subject to annual review.
- Impairment
On the balance sheet date, the Group has made an assessment of whether there are indications that vessels
may need to be impaired.
When such indications exist, the recoverable amount for the vessel is estimated, and the value of the vessel is
written down to the recoverable amount.
Refer to Note 12 for more details on the principles, estimates and matters associated with uncertainty in the
estimate that have been applied.
b) Leases
Recognition of leases and income
For contracts where the Group acts as a lessor, it classifies each of its leases as either an operating lease or
a finance lease. A lease is classified as a finance lease if it transfers substantially all the risks and rewards
incidental to ownership of an underlying asset. A lease is classified as an operating lease if it does not transfer
substantially all the risks and rewards incidental to ownership of an underlying asset.
The group as a lessor does not have any finance leases.
Operating leases
For operating leases, the Group 15ecognized lease payments as other income, mainly on a straight-line basis,
unless another systematic basis is more representative of the pattern in which benefit from the use of the
underlying asset is diminished. The Group 15ecognized costs incurred in earning the lease income in other
operating expenses. The Group adds initial direct costs incurred in obtaining an operating lease to the carrying
amount of the underlying asset and 15ecognized those costs as an expense over the lease term on the same
basis as the rental income.
44
c) Long-term receivables
Under other non-current receivables, EIOF recorded in 2017 a receivable of MUSD 27.5 (total MNOK 235). The
2017 accounts assumed that the receivables from Global Seismic Shipping AS had a value of 45% of par.
Consequently, in the accounts as at December 31, 2017, these receivables were written down by 55%. No
changes have been made to this as at December 31, 2021.
If the reason for the impairment lapses at a later time, and the lapse can be tied to an event taking place after
the impairment is recognised, the previous impairment is reversed. This evaluation has to be made each quarter
based on an overall assessment. Refer to Note 7 for a more detailed description/analysis. As the repayments
are repaid, the impaired part of the payment will be recorded as income. Any reversal will be recorded as other
financial income.
d) Climate and Regulatory Risks
In preparing the financial statement, the Group, has considered the impact of regulatory changes in particular
in the context in climate change risks. The considerations did not impact our judgement and estimates in the
current year. Climate risk is also considered in estimates that include the use of future cashflows.
The most important key assumptions and sources of uncertainties identified are:
• Usefull life of vessels
• Residual value of vessels
• Cash flow from operations
• Short term and long term investments
Eidesvik has been a frontrunner in adopting new technologies that reduces emissions. By the end of 2022 92%
of the fleet has hybrid fuel solutions and the company achieved 26.5% year on year reduction in CO2 reduction
per day.
Refer to Note 12 for more information.
45
NOTE 3 – FINANCIAL RISK MANAGEMENT
Financial risk
The Group is exposed to a variety of financial market risk factors through its activities. Financial market risk is
the risk that fluctuations in exchange rates, interest rates and charter rates will affect the value of the Group’s
assets, liabilities and future cash flows.
The Group’s overall risk management plan focuses on the unpredictability of the capital markets and seeks to
minimize the potential adverse effects on the Group’s financial performance. Elements included in the
management of financial risk are the contract length on charters, use of currency and interest-bearing
instruments, and debt in the same currency as expected payments of charter income. The main focus for the
management of currency and interest rate risk is to hedge future cash flows. The hedge positions for the cash
flows are recorded at fair value with value changes through profit/loss. This exposes the accounts to fluctuations
in the value of the hedging instruments for the cash flow. In Eidesvik Offshore ASA, risk management of the
revenues reported in the accounts is subordinate to risk management of the cash flows. The Group does not
perform hedge accounting.
The Group’s risk management is handled by management according to guidelines from the Board.
a) Market risk
(i) Currency risk (see also Note 23)
The Group operates internationally and is exposed to fluctuations in exchange rates for several currencies.
Currency risk arises from future transactions, and relates to booked assets and liabilities.
To manage the currency risk from future commercial transactions and booked assets and liabilities, the Group
uses currency derivatives. The Group also, to a certain extent, have loans in the same currency as expected
future income.
The Group is particularly exposed to fluctuations in USD, as it has considerable charter income but low
operating costs in this currency. It seeks to reduce fluctuations with loans and currency forward contracts in
the same currency. At December 31, 2022, the Group’s long-term liabilities were divided between 73% NOK
and 27% USD. At December 31, 2021 it was 45% NOK and 55% USD.
The major change is related to the sale of Viking Neptun in 2022 and the repayment of its USD loan.
The Company’s exposure to USD on the balance sheet date is shown in table below, and is significantly reduced
due to the sale of Viking Neptun in 2022. The table below shows estimated change in net profit before tax in
million NOK if the USD rate against NOK had been 50 øre higher/lower at December 31, 2022. The table does
not reflect potential effects on impairment regarding value in use for vessels with income in USD.
+50 øre
-50 øre
Operating profit before profit from associates and joint ventures
0,0
0,0
Profit from joint ventures
0,0
0,0
Net financial income excluding agio/disagio on long-term debt
0,0
0,0
Agio/disagio
-4,6
4,6
Profit/loss for the year
-4,6
4,6
Translation difference, shares
0,0
0,0
Total comprehensive income
-4,6
4,6
(ii) Interest rate risk (see also Note 23)
The Group’s interest rate risk is related to long-term loans and deposits of surplus liquidity. Loans with floating
interest rates involve a risk for the Group’s cash flow. Fixed rate loans exposes the Group to fair value interest
rate risk. The interest rate risk is managed by use of interest derivatives (swaps and caps) within guidelines
from the Board.
The effect of a change in interest rates is simulated in order to support decisions on fixed rate contracts. The
simulation illustrates the cash effect of a change in interest rate based on the size of the loan and the level of
current interest rate hedging. An increase of 1 percentage point in the interest rate, all else being equal, would
decrease net profit before tax by approximately MNOK 5.
46
(b) Credit risk
The Group has a concentration risk as charter contracts are signed with relatively few customers. Eidesvik’s
customers are mainly solid companies with good solvency. The risk of counterparties not having the financial
capacity to fulfil their obligations is considered relatively low. Overdue receivables are followed up monthly.
The Group has chosen to apply the practical simplification rule to calculate losses on accounts receivable. Loss
provisions are raised based on historical data, adjusted for forward-looking factors specific to the debtors and
the economic environment.
The following table categorises the Group’s receivables according to the risk of non-recovery of outstanding
amounts:
Accounts receivable
2022
2021
Group 1
138 779
120 800
Group 2
357
8 681
Group 3
2 623
1 462
Total
141 759
101 416
Group 1: Established customer relationship, good solvency/willingness
Group 2: New customers, possibly slow recovery
Group 3: Established customer relationship, weaker solvency/willingness
The Group has significant long-term receivables from a company in the Global Seismic Shipping AS group that
was sold in January 2020. These receivables are posted in the accounts at a significantly lower value due to
provisions for counterparty risk from the company’s charterer. The recorded value of the receivables was
measured for revenue recognition in 2017 at less than the nominal value. This was in accordance with
observable sales of securities issued by the same counterparty. The credit risk on the receivables is considered
to be lower, and indications of changes in the valuation of these are assessed continuously. The impairment of
the long-term receivables has been reversed to reflect the repayments received. See Notes 5 and 13 for further
information.
Maximum risk exposure is represented by the capitalised value of the financial assets, including derivatives,
on the balance sheet. As the counterparties in derivatives trading are large well-known banks, the credit risk
associated with derivatives is considered low.
(c) Liquidity risk
The Group aims to manage the cash flow from operations by focusing on long-term charters with little price
volatility. Surplus liquidity is mainly placed in ordinary bank deposits.
The Group monitors the risk of a lack of available capital through liquidity budgets for subsequent years, as
well as a monthly 24-month liquidity forecasts. Longer term liquidity forecasts are prepared several times per
year.
The current liquidity position of the Group is satisfactory for the next 12 months considering the agreed
refinancing in 1
st
Quarter 2023.
See also Note 20 for information on amortisation profiles/refinancing needs for long-term liabilities.
The following table sums up the maturity profile for the Group’s liabilities at December 31, 2022, based on
contractual, non-discounted cash flows. Estimated interest is based on current interest and exchange rates at
December 31, 2022.
47
Maturity statement for capitalised liabilities, December 31, 2022:
2023
2024
2025
2026
2027
Later
Loans*
1 095 934
43 542
0
0
0
0
Accrued interest
5 965
0
0
0
0
0
Derivatives
-17 766
-17 766
-8 883
0
0
0
Accounts payable
30 022
0
0
0
0
0
Other current liabilities
177 707
0
0
0
0
0
Subtotal debt items excl. market value derivatives
1 291 862
25 776
-8 883
0
0
0
Estimated interest
Interest payments on existing loans
68 027
1 550
0
0
0
0
Adjustment incurred 31.12.2022
-5 965
0
0
0
0
0
Subtotal assumed interest
62 062
1 550
0
0
0
0
Leases
Leases (Note 22)
7 687
7 656
7 608
7 608
7 546
34 467
Total contractual commitments falling due
1 361 611
34 981
-1 275
7 608
7 546
34 467
Maturity statement for capitalised liabilities, December 31, 2021:
2022
2023
2024
2025
2026
Later
Loans*
128 364
1 676 479
80 035
36 494
36 494
18 247
Accrued interest
7 674
0
0
0
0
0
Derivatives
1 445
-4 869
-4 869
-2 435
0
0
Accounts payable
48 234
0
0
0
0
0
Other current liabilities
140 929
0
0
0
0
0
Subtotal debt items excl. market value derivatives
326 644
1 671 610
75 166
34 059
36 494
18 247
Estimated interest
Interest payments on existing loans
73 274
70 038
5 034
2 323
1 161
749
Adjustment incurred 31.12.2021
-7 674
0
0
0
0
0
Subtotal assumed interest
65 600
70 038
5 034
2 323
1 161
749
Leases
Leases (Note 22)
6 476
6 460
6 460
6 460
6 460
38 761
Total contractual commitments falling due
398 720
1 748 108
86 660
42 842
44 115
57 757
*Liabilities related to Assets held for sale will become due and payable at the time of completion of the sale.
Risk management of capital
A primary goal for the Group is to secure long-term financing of its assets. On February 22, 2023, Eidesvik
announced that it had agreed on a term sheet (“Term Sheet”) with its financial institutions for refinancing of its
debt. With debt maturity in Q1 2026 and aligned amortization payments, the agreed terms significantly
strengthened the Group’s financial position. On March 28, 2023, the final agreements and documentation were
in place and the new terms for the Group’s financing became effective. Please see note 20 for further
information.
48
Assessment of fair value
IFRS 7 requires financial instruments measured at fair value on the balance sheet date to be presented by
level, with the following level classification for measuring fair value:
1) Quoted price in an active market for an identical asset or liability (level 1)
2) Valuation based on other observable factors, either directly (price) or indirectly (derived from prices)
other than the quoted price (used in level 1) for the asset or liability (level 2)
3) Valuation based on factors not taken from observable markets (non-observable assumptions) (level
3)
The following balance sheet items represent financial instruments at fair value:
Balance sheet item:
Level
Cash and cash equivalents
1
Derivatives
2
Financial investments
2
Derivatives are recognised on the basis of valuations from the counterparty (mark to market).
Debts to credit institutions with floating interest rates are recognised at amortised cost, and are valued at
approximate fair value. Fixed-rate loans (CIRR) are recorded at amortised cost, and the estimated value is
described in Note 23. The fair value of fixed-rate loans is calculated by discounting the difference between the
fixed rate and the market rate at December 31, 2022, with a duration equal to the term of the loan.
Cost is considered equivalent to fair value for the equity investments discussed in Note 21.
NOTE 4 – SEGMENT INFORMATION
The Group’s activities are divided into strategic operating segments according to the nature of the vessels’
activities. The various operating segments offer different shipping services, address partially different customer
groups, and have different risk profiles. The Group is divided into the following operating segments:
a. Seismic
b. Subsea/Offshore Wind
c. Supply
d. Other
The Seismic segment delivers shipping services to customers who produce seismic data. At the end of 2022,
all seismic vessels were in layup and held for sale. Refer to note 12 for further information of the seismic fleet.
The Subsea/Offshore Wind segment delivers shipping services for subsea work for the oil industry. The vessels
are specially adapted to tasks such as subsea inspection, maintenance, repairs and construction. Several of
the Company’s subsea vessels meet the requirements in the Offshore Wind market, and one vessel is currently
chartered in this market.
The Supply segment delivers services to the offshore oil industry. The vessels deliver supplies to rigs, and
function as part of the rig’s emergency preparedness.
Transactions between segments are eliminated. These are mainly administration costs that are charged to each
segment.
Long-term financial items in the Group are not allocated, as the Group’s liabilities are mainly included in fleet
facilities.
49
Short-term liabilities are allocated to the segments where possible. Items that do not belong to any of the
segments is recorded under “Other”.
Segment performance is assessed on the basis of operating profit, and is consistently measured against
operating profit in the consolidated financial accounts.
The effect of applying IFRS 15 to the Group’s revenues from contracts with customers is described in Note 2.
Operating segments
(NOK thousands)
Seismic
Subsea / Offshore
Wind
Supply
Other
Consolidated
Operating segments
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
Segment result
Operating income (IFRS 15)
0
0
128 123
130 600
200 642
179 129
24 083
20 882
352 849
330 611
Bareboat income (IFRS 16)
28 206
21 515
164 554
156 020
103 215
77 710
0
0
295 975
255 245
Operating income from JV *
(IFRS 15)
0
0
38 250
35 861
0
0
0
0
38 250
35 861
Bareboat income from JV *
(IFRS 16)
0
0
15 645
16 197
0
0
0
0
15 645
16 197
Gain on sale
0
0
269 723
0
0
1 942
0
0
269 723
1 942
Total operating income
28 206
21 515
616 296
338 677
303 857
258 781
24 083
20 882
972 442
639 855
Operating expenses
18 975
13 798
141 448
158 172
210 783
191 748
53 128
45 368
424 334
409 086
Operating expenses share
from JV *
0
0
37 783
34 604
0
0
0
0
37 783
34 604
Total operating expenses
18 975
13 798
179 231
192 776
210 783
191 748
53 128
45 368
462 117
443 689
Depreciation
14 026
36 135
38 916
86 281
84 192
80 009
5 773
5 536
142 907
207 961
Depreciations share from JV
*
0
0
18 925
18 673
0
0
0
0
18 925
18 673
Impairment on assets
16 053
48 599
-36 564
-192 396
-188 726
0
0
0
-209 237
-143 797
Impairment on assets share
from JV *
0
0
0
0
0
0
0
0
0
0
Total depreciation
30 079
84 734
21 277
-87 442
-104 534
80 009
5 773
5 536
-47 405
82 837
Operating profit incl. share
of the JVs *
-20 848
-77 017
415 788
233 344
197 608
-12 976
-34 818
-30 022
557 730
113 329
Net finance items and tax in
JV*
0
0
-6 831
-5 571
0
0
0
0
-6 831
-5 571
Impairment JV **
0
0
0
0
0
0
0
0
0
0
Share of profit from
associated companies
0
0
0
0
0
0
523
874
523
874
Operating profit
-20 848
-77 017
408 958
227 773
197 608
-12 976
-34 295
-29 148
551 423
108 633
Net financial items
-144 639
-77 912
Tax costs
-49
17
Profit/loss for the year
406 736
30 737
In 2022, the Seismic segment had an impairment of MNOK 16, the Subsea/Offshore Wind segment had a
reversal of previous impairment of MNOK 36.6, and the Supply segment had a reversal of previous impairment
of MNOK 188.7.
In 2021, the Seismic segment had an impairment of MNOK 48.6, and the Subsea/ Offshore Wind segment had
a reversal of previous impairment of MNOK -192.4
*) For shares in joint ventures, the figures in the table are included with the share corresponding to the Group’s
ownership interest. In this note gross values are used in the result, and equity method are used for shares in
joint ventures. No changes in other principles. Refer to Note 7.
50
(NOK thousands)
Seismic
Subsea / Offshore
Wind
Supply
Other
Consolidated
Operating segments
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
Segment assets
14 686
53 128
363 751
303 408
856 357
696 649
230
010
197 013
1
464
804
1 250 198
Proportion of assets in JV*
0
0
279 687
296 000
0
0
0
0
279 687
296 000
Unallocated assets (cash)
0
0
0
0
0
0
0
0
655 653
330 401
Assets held for sale
80 695
63 217
0
959 242
0
0
0
0
80 695
1 022 459
Total consolidated assets
95 381
116 346
363 751
303 408
856 357
696 649
220 010
197 013
2 201 153
2 603 058
Assets incl. share of JV*
95 381
116 346
643 438
1 558
650
856 357
696 649
220 010
197 013
2 480 839
2 899 058
Segment current liabilities (excl.
mortgage debt)
-2 267
-526
-18 357
-23 170
-14 509
-31 244
-182 779
-151 828
-217 911
-206 769
Proportion of debts from JV*
0
0
-141 805
-148 475
0
0
0
0
-141 805
-148 475
Segment mortgage debt and other
long-term liabilities
-291 845
-292 646
-201 219
-991 590
-644 941
-686 278
57 294
788 463
-1 080
711
-1 182
051
Total liabilities incl. share of JV*
-294 112
-293 172
-361 380
-1 163
235
-659 449
-717 522
-125 485
636 634
-1 440
427
-1 537
294
Investments in non-current assets
(excl. periodic maintenance)
1 416
0
29 235
8 261
14 615
43 360
0
0
45 266
51 621
Gross sales of non-current assets
0
0
944 093
0
0
21 808
0
0
944 093
21 808
*) For shares in joint ventures, the amounts in the table are included in proportions equal to the Group’s
ownership interest.
The sale of Viking Neptun in November 2023 significantly reduced the debt in the Subsea/Offshore Wind
segment.
Information on large customers
The majority of the Group’s income is earned from a small number of large customers. The table below shows
the total operating income from all customers representing more than 10% of the Group’s operating income.
The amounts are distributed by segments.
Operating segments
Seismic
Subsea / Offshore Wind
Supply
2022
2021
2022
2021
2022
2021
Customer 1
89 764
86 824
Customer 2
193 333
133 334
Customer 3
67 090
Customer 4
71 341
93 415
Customer 5
207 181
164 131
Total operating income large customers
0
0
296 945
318 045
264 674
226 748
Secondary segments are not reported. The Seismic, Subsea/Offshore Wind and Supply business segments are
the only groups reported internally. Although the vessels in the Seismic and Subsea/Offshore Wind segments
operate in various parts of the world, this is mainly a consequence of the customer’s preferred areas of
operation, not necessarily a decision on a geographical focus area. Presenting geographical areas for these
segments is considered misleading. For the Supply segment, all operations in 2021 and 2022 are in just one
geographical area defined as Europe. Secondary segmentations is therefore omitted.
Refer to Note 22 for maturity for future lease income.
51
NOTE 5 – OTHER INCOME
(NOK thousands)
2022
2021
Dividend from «Den Norske Krigsforsikring «
0
4 025
Reversal of previous write-downs related to receivables
from JVs
14 102
12 350
Gain/loss on the sale of vessels
269 723
1 942
Other income
283 826
18 317
Other income of MNOK 283.8 (18.3) is related to the reversal of previous impairments on repayments received
against the claim against Oceanic Seismic Vessels AS MNOK 14.1; see note 13. MNOK 269.7 is associated
with the sale of Viking Neptun in November 2022.
NOTE 6 – OTHER OPERATING EXPENSES
(NOK thousands)
2022
2021
Technical operation of vessels
89 742
82 940
Insurance
13 774
13 107
Communication costs
6 726
5 734
Administrative costs
11 668
34 233
Other operating expenses
121 910
136 014
Technical operation of vessels includes ongoing operating costs and maintenance of the Group’s vessels;
classification costs are capitalised and depreciated until the next classification and so do not appear as a
separate operating cost.
Administration costs consist mainly of travel, consultancy, legal, audit, leasing and other office costs.
Auditor:
(NOK thousands)
2022
2021
Statutory audit
1 772
1 743
Other financial audit
0
192
Tax advice
48
0
Other audit services
316
0
Total audit
2 136
1 935
The auditor’s fees are presented excluding VAT.
52
NOTE 7 – INVESTMENTS IN JOINT VENTURES AND ASSOCIATED COMPANIES
WITH MINORITY INTERESTS
(NOK thousands)
The Eidesvik Offshore ASA Group has the following investments in joint ventures:
Entity
Country
Industry
Ownership/
voting
share
Book value
31.12.2021
Share of
profit 2022
Translation
differences
Dividends
Addition /
disposal
Assets
held for
sale
Book value
31.12.2022
Eidesvik Seven
AS
Norway
Shipping
50,0 %
132 157
-10 718
0
0
0
0
121 439
Eidesvik Seven
Chartering AS
Norway
Shipping
50,0 %
15 368
1 075
0
0
0
0
16 443
Total
147 526
-9 644
0
0
0
0
137 882
Entity
Country
Industry
Ownership/
voting
share
Book value
31.12.2020
Share of
profit 2021
Translation
differences
Dividends
Addition /
disposal
Assets
held for
sale
Book value
31.12.2021
Eidesvik Seven
AS
Norway
Shipping
50,0 %
140 843
-8 686
0
0
0
0
132 157
Eidesvik Seven
Chartering AS
Norway
Shipping
50,0 %
13 473
1 895
0
0
0
0
15 368
Total
154 316
-6 790
0
0
0
0
147 525
Eidesvik Seven AS and Eidesvik Seven Chartering AS are classified as joint ventures, as Subsea 7 Norge AS
and Eidesvik each own 50% of the shares in the company. Eidesvik Shipping AS is guarantor for 50% of the
debt in Eidesvik Seven AS.
Summary of financial information for the joint ventures:
2022:
Entity
Assets
Non-current
assets
Current
assets
Of this
bank
Equity
Liabilities
Long-term
Short-term
Eidesvik Seven
AS
504 647
485 355
19 292
9 341 471
242 877
261 770
255 589
6 182
Eidesvik Seven
Chartering AS
54 726
0
54 726
31 323
32 886
21 839
0
21 839
Entity
Revenue
EBITDA
Depr. /
impairment
Financial
income
Financial
expenses
Net
financial
items
Taxes
Profit/loss
for the year
Group
share
Eidesvik Seven
AS
31 290
29 801
37 851
87
13 473
-13 387
0
-21 437
-10 718
Eidesvik Seven
Chartering AS
107 790
2 546
0
394
18
376
650
2 272
1 075
-9 644
2021:
Entity
Assets
Non-current
assets
Current
assets
Of this
bank
Equity
Liabilities
Long-term
Short-term
Eidesvik Seven
AS
533 325
518 708
14 616
182
264 314
269 011
266 918
2 093
Eidesvik Seven
Chartering AS
58 675
0
58 675
29 906
30 737
27 938
0
27 938
Entity
Revenue
EBITDA
Depr. /
impairment
Financial
income
Financial
expenses
Net
financial
items
Taxes
Profit/loss
for the year
Group
share
Eidesvik Seven
AS
32 393
31 138
37 346
0
11 164
-11 164
0
-17 371
-8 686
Eidesvik Seven
Chartering AS
103 848
3 769
0
22
1
22
0
3 791
1 895
-6 790
53
Associated companies
The group has the following investments in these individual associated companies:
2022:
Entity
Country
Ownership/ voting
share
Book value
31.12.2021
Result portion
Simsea Holding AS
Norway
10,37 %
0
0
Bleivik Eiendom AS
Norway
22,59 %
3 118
523
Eidesvik Ghana Ltd.
Ghana
49,00 %
0
0
3 118
523
2021:
Entity
Country
Ownership/ voting
share
Book value
31.12.2021
Result portion
Simsea Holding AS
Norway
10,37 %
0
0
Bleivik Eiendom AS
Norway
22,59 %
2 595
1 940
Eidesvik Ghana Ltd.
Ghana
49,00 %
0
-1 065
2 595
874
Refer to note 21, other shares.
Subsidiaries with substantial minority interests
The Group has two subsidiaries where there are substantial minority interests. Of companies with minority
interests, only the companies below are considered material.
2022:
Entity
Country
Minority interests (%)
Minority share of
profit/loss
Eidesvik Neptun AS
Norway
25,25 %
54 738
Eidesvik Neptun II AS
Norway
25,25 %
5 942
60 680
2021:
Entity
Country
Minority interests (%)
Minority share of
profit/loss
Eidesvik Supply AS *
Norway
19,89 %
-1 897
Eidesvik Neptun AS
Norway
25,25 %
48 673
Eidesvik Neptun II AS
Norway
25,25 %
-292
46 482
* The Group has in September 2021 bought out the the minority owners, and the minority share of profit/loss is
per August 31, 2021.
54
Summary of financial information for subsidiaries with substantial minority interests:
2022:
Entity
Assets
Non-current
assets
Current
assets
Of which
bank
Equity
Liabilities
Long-term
Short-term
Eidesvik Neptun AS
298 519
0
298 519
29 149
250 136
48 383
0
48 383
Eidesvik Neptun II AS
83 693
0
83 693
51 715
88
83 605
0
83 605
Entity
Revenue
EBITDA
Depr. /
impairment
Financial
income
Financial
expenses
Net financial
items
Taxes
Profit/loss for
the year
Eidesvik Neptun AS
395 021
368 005
0
1 096
152 340
-151 244
0
216 761
Eidesvik Neptun II AS
157 396
2 071
0
545
57
488
0
2 558
2021:
Entity
Assets
Non-current
assets
Current
assets
Of which
bank
Equity
Liabilities
Long-term
Short-term
Eidesvik Supply AS
196 773
170 667
26 105
3 442
1 207
195 566
132 329
63 236
Eidesvik Neptun AS
1 016 679
944 775
71 904
1 345
33 473
983 206
942 107
41 099
Eidesvik Neptun II AS
76 003
0
76 003
34 788
-24 207
100 209
0
100 209
Entity
Revenue
EBITDA
Depr. /
impairment
Financial
income
Financial
expenses
Net financial
items
Taxes
Profit/loss for
the year
Eidesvik Supply AS
41 047
7 564
14 781
27
12 931
-12 904
0
-20 121
Eidesvik Neptun AS
103 727
86 240
-165 581
26
59 109
-59 082
0
192 739
Eidesvik Neptun II AS
128 095
-4 942
0
3 476
382
3 094
0
-1 848
NOTE 8 – NET FINANCIAL ITEMS
(NOK thousands)
2022
2021
Interest income
10 831
10 502
Other financial income
3 590
0
Total financial income
14 421
10 502
Interest expense on loans
-86 166
-71 529
Other interest expenses
-277
-1 129
Interest cost – lease liabilities
-3 783
-2 885
Reversal of previous write-downs of receivables
7 247
7 366
Other financial expenses
-10 865
-910
Total financial expenses
-93 844
-69 087
Realised currency gains (losses)
-94 411
-17 667
Change in market value on interest instruments
51 142
18 282
Unrealised currency gains (losses) – related to other
items
-21 584
-14 222
Value change on currency futures 26ecognized at fair
value via profit/loss
-363
-5 721
Total currency gains
-65 216
-19 328
Net financial items
-144 639
-77 913
55
Realised currency loss in 2022 is mainly related to the delivery of Viking Neptun and the corresponding
repayment of debt.
NOTE 9 – TAX
(NOK thousands)
2022
2021
Tax cost Norway and abroad
49
-16
Tax costs
49
-16
Fixed asset reserve
48 067
20 585
Profit and loss account
-15 483
-19 638
Pension liabilities
417
282
Loss carried forward
-840 253
-464 433
* Total temporary differences
-807 251
-463 332
Recognised deferred tax assets
0
0
Applied tax rate
22 %
22 %
Deferred tax assets are not recognised in the balance sheet due to uncertainty as to when such assets may be
realised.
Tax payable
Tax payable for the year subject to the tonnage tax
regime
0
0
Other corporation tax payable, Norway and abroad
0
-16
Total tax payable
49
-16
Explanation of taxes in the income statement:
Profit/loss before taxes
406 784
30 720
Calculated 22%/22% tax
89 493
6 758
Tax effect of:
Permanent differences/ results subject to the tonnage
tax/ difference tax rate abroad
-89 444
-6 775
Calculated tax for the year
49
-16
The Group’s effective tax rate
0 %
0 %
* Temporary differences are estimated based on preliminary tax assessments.
The tonnage tax, which is determined based on the vessel`s net weight, is booked as other operating expenses.
NOTE 10 – EARNINGS PER SHARE
(NOK thousands)
2022
2021
Profit/loss for the year attributable to the majority
shareholders
346 056
-15 746
Number of issued ordinary shares (thousands)
62 150
62 150
Number of issued ordinary shares (thousands)
62 150
62 150
Earnings per share
5,57
-0,25
Diluted earnings per share
5,57
-0,25
No dividends were paid in 2022, and the Board has not proposed any payment of dividends in 2023.
56
NOTE 11 – PAYROLL EXPENSES AND NUMBER OF EMPLOYEES
(NOK thousands)
2022
2021
Payroll after net pay refund
181 989
161 021
Social security costs
49 494
44 429
Defined benefit pension (see Note 18)
275
268
Contribution pension
12 402
13 849
Hired personnel
29 273
23 435
Other personnel costs
28 992
30 070
Total personnel costs
302 425
273 072
Salaries and payroll tax are shown after deduction for the reimbursement scheme for seafarers.
The average number of full-time equivalents was:
429
426
Number of employees at end of year:
428
424
In 2022, NOK 41,581 thousand (NOK 57,201 thousand in 2021) was received in connection with the
reimbursement scheme for Norwegian seafarers.
In 2022, NOK 3,013 thousand (NOK 2,577 thousand in 2021) was received from Stiftelsen Norsk Maritim
Kompetanse.
All received refunds are presented as a reduction of payroll expenses.
NOTE 12 – TANGIBLE FIXED ASSETS
2022:
(NOK thousands)
Property
Port
facilities
Operating
equipmen
t
Total
other
fixed
assets
Vessels
Periodic
maintena
nce
Total
vessels
New build
contracts
Total (*)
Acquisition cost
1 January 2022
37 414
3 594
42 559
83 567
5 890 541
359 633
6 250 174
0
6 333 741
Addition
0
0
372
372
45 266
56 183
101 448
0
101 821
Disposal
0
0
-2 700
-2 700
-1 288 357
-61 268
-1 349 625
0
-1 352 325
31 December 2022
37 414
3 594
40 231
81 239
4 647 450
354 548
5 001 998
0
5 083 236
Accumulated
depreciation and
impairments
1 January 2022
19 624
3 494
39 926
63 044
4 034 132
285 076
4 319 208
0
4 382 251
Depreciation in the year
180
0
93
273
87 156
49 978
137 134
0
137 407
Impairment for the year
0
0
0
0
16 053
0
16 053
0
16 053
Reversal of previous
impairment for the year
0
0
0
0
-225 290
0
-225 290
0
-225 290
Disposals
0
0
-625
-625
-344 232
-44 350
-388 582
0
-389 208
31 December 2022
19 804
3 494
39 393
62 692
3 567 818
290 704
3 858 522
0
3 921 214
Book value
17 610
100
837
18 547
1 079 632
63 844
1 143 475
0
1 162 023
57
2021:
(NOK thousands)
Property
Port
facilities
Operating
equipment
Total other
fixed
assets
Vessels
Periodic
maintenan
ce
Total
vessels
New build
contracts
Total (*)
Acquisition cost
1 January 2021
37 414
3 717
42 529
83 660
5 989 257
352 385
6 341 641
0
6 425 301
Addition
0
0
31
31
51 621
36 899
88 521
0
88 551
Disposal
0
-123
0
-123
-150 336
-29 651
-179 988
0
-180 111
31 December 2021
37 414
3 594
42 559
83 567
5 890 541
359 633
6 250 174
0
6 333 741
Accumulated depreciation
and impairments
1 January 2021
19 443
3 494
39 277
62 215
4 170 167
248 592
4 418 759
0
4 480 974
Depreciation in the year
180
0
648
829
140 026
62 399
202 425
0
203 254
Impairment for the year
0
0
0
0
76 894
0
76 894
0
76 894
Reversal of previous
impairment for the year
0
0
0
0
-220 691
0
-220 691
0
-220 691
Disposals
0
0
0
0
-132 265
-25 915
-158 180
0
-158 180
31 December 2021
19 624
3 494
39 926
63 044
4 034 132
285 076
4 319 208
0
4 382 251
Book value
17 790
100
2 633
20 523
1 856 410
74 557
1 930 965
0
1 951 490
(*) right-of-use assets TNOK 55 489 and depreciation TNOK 5 563 is not included in the table above. Refer to
note 22 IFRS 16, Lease.
Please refer to Note 20 for information on mortgaged assets.
Refer to Note 2, point 2.5, for details of depreciation periods for vessels and lumping together of components.
The Company has in November 2022 sold the Subsea/Wind vessel Viking Neptun, the sale generated a gain of
MNOK 269.7.
The PSV Viking Athene was sold in April 2021, and sale generated a gain of MNOK 1.9.
All four seismic vessels are classified as held-for-sale. In determining whether the decisions of sale of the
vessels are assessed as discontinued operations or asset held for sale, the Group have concluded that the
seismic operations is not a major line of business. The assessment made is based on the fact that the seismic
operation’s representative share of the Group’s total revenue is not viewed as significant (4% for 2022).
Consistently discontinued operations is not applicable, and the vessels are classified as asset held for sale in
accordance with IFRS 5. All four seismic vessels are classified as held-for-sale and are included in the table
above. Refer to note 20 for Liabilities related to Assets held for sale.
Property/port facilities include plots/land valued at MNOK 17.7 (MNOK 17.9) which are not depreciated.
Impairment tests are performed on individual cash generating entities (vessels) when indications of impairment
or reversal of previous impairments are identified. Due to observed indicators, such as improved market
conditions and increase in market interest rates, the vessels’ book values have been tested for impairment and
reversal of previous impairments at all quarter end during 2022. Based on these tests, Eidesvik recognized a
net reversal of impairment of MNOK 209.2 during 2022. Of this, MNOK 36.6 was related to reversal of
impairment of one subsea/offshore wind vessel, and MNOK 188.6 is related to reversal of impairments of five
PSVs. In addition, one seismic vessel was impaired with MNOK 16.0.
The Group monitors the presence of impairment indicators during the periodical financial reporting, and thus
may update its assessments of impairments to reflect further changes in the underlying market assumptions.
Broker estimates are not used as an approximate sales value on the balance sheet date as there are few
observed sales of the type of vessels the Company owns. For the assessment of value in use, expected future
cash flows are used, discounted to net present value using a discount rate before taxes reflecting the market-
based time value of money, as well as risk specific to the asset.
The discount rate is derived from a weighted average cost of capital (WACC) for market players. The average
WACC used in the calculations per December 31, 2022, is 9.2%. This takes into account that the Group’s
business is mainly within the tonnage tax system, and the calculated WACC is assumed to apply both before
and after tax. The capital structure used in the weighted average cost of capital is based on an assumed capital
structure in comparable companies with similar assets in a normal situation. Equity cost is based on the
expected required rate of return for the Group’s investors. Debt costs are based on the risk-free interest rate,
plus a premium equivalent to the difference between risk-free rate and market rates. The beta factors are
58
evaluated quarterly when deemed necessary, and otherwise at least annually, on the basis of publicly available
market data for identified comparable companies and the main index on the Oslo Stock Exchange.
Future cash flows are estimated on the basis of estimated remaining useful life, which may exceed 5 years.
The cash flows used in the impairment tests for 2022 are based on and reconciled against the financial forecasts
which the Group uses for internal planning purposes as well as present to its lenders. Important elements in
estimated cash flows are the long-term inflation rate, the contract situation (order backlog), the utilization rate,
ordinary operating expenses, periodic maintenance (docking), charter rates, and exchange rates.
In 2022, the Seismic segment had an impairment charge of MNOK 16.0 (recoverable amount MNOK 106.7), the
Subsea/Offshore Wind segment had a reversal impairment of MNOK 36.6 (MNOK 443.4), and the Supply
segment had a reversal of MNOK 188.6 (MNOK 989.0). In 2021, net reversal of previous impairments of MNOK
143.8 were charged.
T
here is significant uncertainty associated with the assumptions for the value in use calculations. The
calculation is based on market prospects which are weak in all three segments in the short and medium term.
On a general view, it is considered that the seismic survey market will see a few years after the balance sheet
date where layups or reduced rates must be expected for the vessels that are not on fixed contracts. The same
considerations apply to the subsea and supply markets.
The expected future earnings used in the calculations are implicitly adjusted for utilisation rate adapted to this
general market view. Therefore, sensitivity calculations have also been performed for the value in use
calculations and the impaired amounts, in order to highlight the uncertainty in the calculations.
If the utilisation rate for the entire fleet are assumed to be reduced by 5 percentage points on uncontracted
income, the impairment would not be affected. If the WACC assumed had increased to 10.5%, the impairment
charge would not be affected.
Climate-related matters
The Group constantly monitors the latest regulatory changes in relation to climate-related matters.
The Group has already invested in hybrid battery solutions for the majority of its fleet. For further green fuels
and technologies to reduce CO2 emission for the fleet the Group continues to investigate this together with our
customers, suppliers and also follow up on possibilities for public funding. Forecast for the vessels include
green investments to the extent relevant and are therefore included in assessment of impairment and reversal
of impairment. The investments done by the Group so far with focus on reduction in CO2 has historically
contributed to securing long term contracts for the vessels in particular in periods where there has been excess
capacity in the market. Higher fuel price due to CO2 levels or the cost of green fuels will for the most part be
forwarded to the customer, hence there is limited impact in the Group’s OPEX short term.
For the Group’s long term sustainability goals of 50% reduction in CO2 in 2030, and climate neutral in 2050 to
be met, both newbuild programs and new technology has to be implemented and yield appropriate returns. Long
term investments are evaluated on this basis.
In the current market, with the existing fleet in the industry, current new build plans and commercial maturity
of new emission technology there is no impact on residual values or useful life of the Group’s existing vessels.
All the Group’s vessels comply with current environmental requirements. Reference is also made to Note 2.27
d).
NOTE 13 – OTHER LONG-TERM RECEIVABLES
(NOK thousands)
31.12.2022
31.12.2021
Long-term receivables, OSEV
39 769
51 178
Total other long-term receivables
39 769
51 178
Long-term receivables, OSEV, are related to the company Oceanic Seismic Vessels AS (subsidiary of Global
Seismic Shipping AS, “GSS”), regarding the reorganisation of shares in the company and the establishment of
GSS (sold in January 2020), as well as the receipt of receivables against the same companies from CGG as
part-settlement for the amendment in the contract for Viking Vanquish in 2017. The nominal value as at
December 31, 2022, was MUSD 8.45 (MUSD 12.60 as at December 31, 2021), but the value recognised in the
accounts is substantially lower due to provisions for counterparty risk with the company’s charterer. In 2022
repayments were paid in accordance with the agreed plan, and write-downs on the payments received were
reversed (see Note 5 and Note 8).
59
NOTE 14 – ACCOUNTS RECEIVABLE
(NOK thousands)
31.12.2022
31.12.2021
Accounts receivable
127 269
125 302
Accounts receivable related parties/join ventures
16 019
12 485
Provision for losses
-1 529
-6 845
Total accounts receivable
141 759
130 942
O
f overdue accounts receivable related to other than related parties, the expected loss rate is as follows:
(NOK thousands)
31.12.2022
31.12.2021
0-3 months
0 %
1 %
3-6 months
0 %
0 %
6 months <
47 %
58 %
Recorded value of the Group’s accounts receivable per
currency:
EUR
16 447
22 447
USD
15 710
27 569
GBP
0
47
NOK
109 601
80 879
Total accounts receivable
141 759
130 942
Net change in provisions for impairment of accounts receivable:
31.12.2022
31.12.2021
At January 1
6 845
1 400
Provision for impairment of receivables
-6 845
5 445
Accounts receivable recorded as loss during the year
-1 529
0
At December 31
-1 529
6 845
NOTE 15 – OTHER CURRENT ASSETS
(NOK thousands)
31.12.2022
31.12.2021
Inventories (bunkers and lube oil)
17 756
21 756
Other shares
34
34
VAT receivable
2 534
10 068
Insurance settlement receivable
20 983
5 363
Net payroll
13 427
14 697
Prepaid expenses
16 011
16 345
Security for guarantee
10 000
0
Total other current assets
80 744
68 265
Prepaid expenses include expenses for pre-paid insurance, refund of crew costs and unbilled expenses.
NOTE 16 - CASH AND CASH EQUIVALENTS
Of total cash and cash equivalents at December 31, 2022, of MNOK 655.7 (MNOK 330.4 at December 31, 2021),
where MNOK 7.2 is restricted tax funds and MNOK 62.7 is funding restricted for use towards the ShipFC
ammonia project (EU support).
60
NOTE 17 - SHARE CAPITAL AND PREMIUM
Changes in paid share capital:
(NOK thousands)
Number of shares
Share capital
2022
2021
2022
2021
Ordinary shares
Opening balance
62 150
62 150
3 108
3 108
Share issue
0
0
0
0
At December 31
62 150
62 150
3 108
3 108
Nominal value per share in Eidesvik Offshore ASA is NOK 0.05 (5 øre).
The 20 largest shareholders in Eidesvik Offshore ASA as at December 31, 2022:
Shareholder
Country
Number
of shares
Ownership
share
EIDESVIK INVEST AS
NORWAY
37 200 000
59,86 %
JAKOB HATTELAND HOLDING AS
NORWAY
3 061 741
4,93 %
HELGØ FORVALTNING
NORWAY
1 446 711
2,33 %
VINGTOR INVEST AS
NORWAY
1 434 719
2,31 %
STANGELAND HOLDING AS
NORWAY
1 096 401
1,76 %
BERGTOR INVESTERING AS
NORWAY
1 096 401
1,76 %
DUNVOLD INVEST AS
NORWAY
837 000
1,35 %
SKANDINAVISKA ENSKILDA BANKEN AB
SWEDEN
793 808
1,28 %
SILBERG, JOHNNY
NORWAY
600 000
0,97 %
HELGØ INVEST AS
NORWAY
500 000
0,80 %
HELLAND AS
NORWAY
474 585
0,76 %
TVEITÅ, EINAR KRISTIAN
NORWAY
444 000
0,71 %
CAIANO SHIP AS
NORWAY
372 575
0,60 %
CALIFORNIA INVEST AS
NORWAY
358 000
0,58 %
BJØRKEHAGEN AS
NORWAY
300 000
0,48 %
OLAVS HOLDING AS
NORWAY
292 338
0,47 %
SMEDASUNDET AS
NORWAY
269 787
0,43 %
DNB BANK ASA
SWEDEN
257 985
0,42 %
LGJ INVEST AS
NORWAY
250 000
0,40 %
HANNESTAD, KARL CHRISTIAN
NORWAY
230 950
0,37 %
Others
10 832 999
17,43 %
Total
62 150 000
100,00 %
The Company had 2,291 shareholders as at December 31, 2022, and a foreign owner share of 2.91%. See also
Note 24.
61
NOTE 18 - PENSIONS AND OTHER LONG-TERM EMPLOYEE BENEFITS
The Company is required to have an occupational pension scheme under the Mandatory Occupational Pensions
Act. The Company’s pension schemes satisfy the requirements of this Act.
Defined benefit pension
This pension scheme was replaced by a defined contribution scheme for all employees, except for former CEO.
The estimated payment into the defined benefit scheme in 2023 is NOK 275 thousand.
Capitalised liability is determined as follows:
(NOK thousands)
2022
2021
Net present value of accrued defined benefit pension
liabilities in fund based schemes
3 899
3 520
Fair value of pension funds
-4 317
-3 802
Net capitalised pension liability/fund December 31
-417
-282
Changes in defined benefit pension liability during the year:
2022
2021
Pension liability January 1
3 519
3 256
Net present value of pension contribution of the year
248
240
Interest expenses
71
58
Transfer/acquisition/moving members/new contracts
0
0
Payroll tax on employer’s contribution
-63
-104
Actuarial loss/(gain)
0
0
Benefits paid
124
69
Pension liability December 31
3 899
3 519
Change in fair value of pension funds:
2022
2021
Pension funds January 1
3 801
3 020
Expected return on pension funds
44
32
Transfer/acquisition/moving members/new contracts
0
0
Actuarial (gains)/losses
22
14
Payroll tax on employer’s contribution
-63
-104
Employer’s contribution
513
839
Benefits paid
0
0
Pension funds December 31
4 317
3 802
Total cost included in net profit:
2022
2021
Cost of pension contribution for the period
214
207
Net changes in plan, scaling down, settlement
0
0
Interest expenses
4
4
Expected return on pension funds
-10
-3
Administrative costs
36
29
Payroll tax on pension costs
31
30
Total, included in payroll expenses (Note 11)
275
268
Estimate deviations due to changes in actuarial assumptions included in other income and costs (OCI):
Estimate deviations due to changes in actuarial assumptions included in other comprehensive
income (OCI):
2022
2021
Changes in the discount rate
-527
-108
Changes in other financial assumptions DBO
-27
-53
Changes in other DBO
651
177
Changes in other - pension funds
-46
-7
Funds and interest guarantees
51
46
Estimate deviation losses/(gains) against OCI*
102
55
62
*Estimate deviation losses/(gains) against OCI was in 2021 booked as a loss. Corrected in 2022 and therefore
not reconcilable to the accounts.
The pension funds are placed in various investments through external insurance companies. They manage all
transactions for the pension schemes. Breakdown into investment categories:
2022
2021
Shares
10 %
10 %
Bonds
53 %
46 %
Real estate
11 %
14 %
Money market
4 %
11 %
Other
22 %
20 %
To calculate pension costs and net pension liabilities, the following assumptions are used:
2022
2021
Discount rate
3,00 %
1,90 %
Return on pension assets
3,00 %
1,90 %
Wage growth
3,50 %
2,75 %
Pension adjustment
1,50 %
0,00 %
G adjustment
3,25 %
2,50 %
The discount rate is based on interest on covered bonds (OMF), whereas this was previously based on the
government bond rate.
Mortality table K2013 BE is used as a basis for mortality.
Sensitivity of the calculation of pension liability to changes in the assumptions:
The table below shows an estimate of potential effects of a change in certain assumptions for defined benefit
pension schemes in Norway.
Change in amount
Discount rate
Annual wage growth
1,00 %
-1,00 %
1,00 %
-1,00 %
Total
Pension liability PBO
3 388
4 516
3 900
3 900
Pension cost for period
SCC
231
290
258
258
Active members
Pension liability PBO
3 388
4 516
3 900
3 900
Pension cost for period
SCC
231
290
258
258
Pensioners
Pension liability PBO
-
-
-
-
Risk assessment
Through the defined benefit schemes, the Group is affected by a number of risks arising from uncertainty in
assumptions and future developments. The key risks are described here:
Life expectancy
The Group has undertaken to pay pensions to the employee for the remainder of their lives. So an increase in
life expectancy among the members will lead to an increase in the liability for the Company.
Return risk
The Group is affected by a reduction in the actual return on the pension funds. This will lead to an increase in
the liability for the Company, as the return on the funds will not be sufficient to meet the obligation.
63
Inflation and wage increase risk
The Group’s pension liability carries risk associated with both inflation and wage growth, although wage
development is closely linked to inflation. Higher inflation and wage growth than assumed in the pension
estimates will lead to a larger liability for the Group.
NOTE 19 - OTHER LIABILITIES
(NOK thousands)
31.12.2022
31.12.2021
Public taxes and charges
27 501
35 474
Salaries and holiday pay
35 280
33 639
Accrued expenses
57 524
51 890
Prepaid costs SHIP-FC project
57 401
19 925
Total other current liabilities
177 707
140 929
Accrued expenses are mainly related to provisions for accrued operating costs and docking/average
adjustment.
In 2020 Eidesvik entered into the five year European joint development project ShipFC where Viking Energy
will be retrofitted with a 2 MW fuel cell running on green ammonia.
The project has received funding from EU
to cover a main part of the project costs.
NOTE 20 - LONG-TERM LIABILITIES
Book value
(NOK thousands)
31.12.2022
31.12.2021
Mortgage (NOK)
827 958
884 165
Mortgage (USD)
311 518
1 091 947
Other loan
1 099
1 056
Capitalised establishment costs
-1 471
-5 599
Total interest-bearing long-term liabilities
1 139 103
1 971 570
Total long-term liabilities
1 139 103
1 971 570
Short-term portion of long-term liabilities
-983 569
-86 705
Liabilities related to Assets held for sale
-112 365
-840 666
Total long-term liabilities excl. first year’s repayment
43 169
1 044 199
Short-term loans
First year’s repayment of long-term liabilities
983 569
86 705
Accrued interest
5 965
7 674
Total
989 534
94 379
Liabilities related to Assets held for sale
112 365
840 666
Total
112 365
840 666
Book value of liabilities in
currency
NOK
827 585
879 623
USD
311 518
1 091 947
Total
1 139 103
1 971 570
64
Amortisation profile on long-term liabilities at December 31, 2022*:
Pre refinancing in Q1 2023
Post refinancing in Q1 2023
2023
1 095 934
452 500
2024
43 542
85 000
2025
0
85 000
2026
0
516 976
Total repayments
1 139 476
1 139 476
*Liabilities related to Assets held for sale will become due and payable at the time of completion of the sale.
The Company has in Q4 2022 sold the Subsea/Offshore Wind vessel Viking Neptun, and the long-term loan is
repaid. All four seismic vessels are classified as held-for-sale, and the corresponding debt is classified as
Liabilities related to assets held for sale. Refer to note 12 for Assets held for sale.
Of total liabilities, MNOK 1,139.5 are secured against mortgages in vessels recorded at MNOK 1,143.5.
For an assessment of the fair value of long-term liabilities, see Notes 3 and 23.
Change in liabilities
Interest
expenses
Interest-
bearing
short-term
debt
Current
lease
liabilities
Assets held
for sale*
Interest-
bearing
long-term
debt
Non-current
lease
liabilities
Total
At January 1, 2022
94 379
3 256
840 666
1 044 199
51 147
2 033 646
Repayment of debt
-89 797
-4 890
(876 124)
0
0
-970 811
Interest paid
-83 335
-7 674
0
0
0
0
-91 009
Cash flow from
financing
-83 335
-97 472
-4 890
-876 124
0
0
-1 061 821
Exchange rate effects
36 703
0
96 056
0
0
132 759
Capitalisation costs
0
0
0
4 127
0
4 127
Interest accrued but not
paid
5 965
0
0
5 965
Other changes
949 958
5 851
51 768
-1 005 158
2 827
5 246
At December 31, 2022
989 534
4 217
112 365
43 168
53 973
1 203 258
Amortisation profile on long-term liabilities at December 31, 2021*:
2022
128 364
2023
1 676 479
2024
80 035
2025
36 494
2026
36 494
Later
18 247
Total repayments
1 976 112
65
Change in liabilities
Interest
expenses
Interest-
bearing
short-term
debt
Current
lease
liabilities
Assets held
for sale*
Interest-
bearing long-
term debt
Non-current
lease
liabilities
Total
At January 1, 2021
166 596
3 256
0
2 193 798
54 862
2 418 512
Repayment of debt
-420 514
-3 714
0
0
0
--424 228
Interest paid
-71 291
-8 871
0
0
0
0
-80 163
Cash flow from
financing
-71 291
-429 386
-3 714
0
0
0
--504 392
Exchange rate effects
-6 635
0
0
43 611
0
36 976
Capitalisation costs
0
0
0
3 557
0
3 557
Interest accrued but not
paid
7 674
0
0
0
0
7 674
Other changes
356 129
3 714
840 666
-1 196 767
-3 714
28
At December 31, 2021
94 379
3 256
840 666
1 044 199
51 147
2 033 647
*Liabilities related to Assets Held for sale
Covenants
The majority of the Company’s fleet is financed with mortgage loans, mainly fleet loans. The most important
financial covenants at December 31, 2022, were:
• Free liquidity of MNOK 70.
• Positive working capital (current assets less current liabilities, excluding current portion of long-term
debt).
• Loan to value: Suspended until the end of the refinancing period.
• Limitations on investments and dividends.
There are also clauses related to change of control concerning the Eidesvik families.
No companies in the Eidesvik Offshore Group were in breach of any covenants at December 31, 2022, or during
2022.
The new refinancing
On February 22, 2023, Eidesvik announced that it had agreed on a term sheet with its financial institutions for
refinancing of its debt. On March 28, 2023, the final agreements and documentation were in place and the new
terms for the Group’s financing became effective. The new debt will mature on February 28, 2026, and hence
reclassify the majority of the outstanding debt from current liabilities to non-current liabilities.
Summary of the refinancing
Amortization:
• Facility prepayment of NOK 410 million was made on the date of signing and final documentation.
• In 2023, scheduled amortization amounts to NOK 42.5 million in total for the Group.
• In 2024 and 2025, scheduled amortization amounts to NOK 85.0 million in total for the Group.
Cash Sweep:
• No cash sweep mechanisms
Financial covenants:
• Minimum free liquidity of NOK 60 million.
• Positive working capital (current assets less current liabilities, excluding instalments and current
portion of long term debt).
• Leverage ratio of 5.0 or lower in 2023, 4.0 in 2024 and 3.5 in 2025.
• Equity ratio of 35% for 2023, and 40% thereafter.
66
NOTE 21 - OTHER SHARES
(NOK thousands)
Shares
Entity
Country
Industry
Ownership/voting
share
Book value
31.12.2022
Book value
31.12.2021
Simsea Holding AS
Norway
Training
10,4 %
0
0
Bleivik Eiendom AS
Norway
Real estate
22,6 %
3 118
2 595
Eidesvik Ghana Ltd.
Ghana
Shipping
49,0 %
0
0
Total
3 118
2 595
Simsea is a simulation centre for training nautical personnel. Bleivik Eiendom AS leases out properties to
companies conducting safety training for maritime personnel.
Simsea Holding AS was written down to NOK 0 because of the bankruptcy of Simsea AS in the winter of 2017.
Eidesvik Ghana Ltd has been written down to NOK 0 based on the probability of getting the funds out of Ghana.
The investments are valued by the equity method. Refer to note 7.
NOTE 22 - LEASES
(NOK thousands)
Right-of-use assets
IFRS 16 “Leases” sets out the principles for the recognition, measurement and disclosure requirements for both
parties to a lease contract. IFRS 16 is effective for reporting periods beginning on or after January 1, 2019.
The Group adopted IFRS 16 on the effective date using a modified retrospective approach and will not restate
comparative information.
The Group is both a lessor, as it charters vessels to customers, and a lessee. The new requirements result in
significant changes to the accounting model applied by lessees and will primarily affect the Group’s accounting
for the operating leases as a lessee. The accounting for lessors will not significantly change.
To determine whether a contract contains a lease, it is considered whether the contract conveys the right to
control the use of an identified asset. This is for the Group considered to only be the case for office leases and
vehicles. The Group has long term lease agreements on office premises and vehicles that will be affected by
implementation of IFRS 16. For the Group, these lease commitments will result in the recognition of an asset
(right-of-use) and a lease liability. The rental period is calculated based on the duration of the agreement plus
any option periods if these with reasonable certainty will be exercised. Joint expenses etc. are not recognised
in the lease liability for the rental contracts.
As permitted by IFRS 16, the Group chose to measure the right-of-use asset equal to the amount of the liability
at the implementation date. The future payments under each lease arrangement have been discounted using
the incremental borrowing rate applicable to the leased assets in order to calculate the lease liability recognized
on the date of adoption.
The Group has used the following practical expedients when applying IFRS 16 to leases:
• Applied the exemption not to recognise right-of-use assets and liabilities for leases with less than 12
months of lease term
• Excluded initial direct costs from measuring the right-of-use assets at the date of initial application
• The liabilities were measured at the present value of the remaining lease payments, discounted using
the lessee’s incremental borrowing rate as of 1 January 2019. The weighted average lessee’s
incremental borrowing rate applied to the lease liabilities on January 1, 2019 was 5.0%.
67
Right-of-use assets
Buildings
Vehicles
Total
Acquisition cost January 1, 2022
64 048
386
64 434
Addition of right-of-use assets
10 010
626
10 636
Disposals
-86
-86
Acquisition cost December 31, 2022
74 058
926
74 984
Accumulated depreciation and
impairment
Depreciation 2019
4 293
179
4 472
Depreciation 2020
4 575
179
4 754
Depreciation 2021
4 679
28
4 707
Depreciation 2022
5 411
152
5 563
Accumulated depreciation and impairment December 31, 2022
18 958
538
19 496
Carrying amount of right-of-use assets December 31,
2022
55 101
388
55 489
Lower of remaining lease term or economic life
10
years
24-50
months
Lease liabilities
Undiscounted lease liabilities and maturity of cash
outflows
Buildings
Vehicles
Total
Less than 1 year
7 534
153
7 687
1-2 years
7 534
122
7 656
2-3 years
7 534
74
7 608
3-4 years
7 534
74
7 608
4-5 years
7 534
12
7 546
More than 5 years
34 467
0
34 467
Total undiscounted lease liabilities at December 31, 2022
72 137
436
72 573
Summary of the lease liabilities
Buildings
Vehicles
Total
At initial application 01.01.2022
54 402
0
54 402
New lease liabilities recognised in the year
7 659
539
8 198
Installment
-7 092
-165
-7 257
Interest expense on lease liabilities
2 824
23
2 847
Total lease liabilities at December 31,
2022
57 793
397
58 190
Current lease liabilities
4 084
133
4 217
Non-current lease liabilities
53 708
264
53 973
Total cash flow for
leases
7 257
68
The Group as lessor
The Group’s main activity is leasing of offshore tonnage. See overview as of April 26, 2023, below.
Vessels,
consolidated
Contract type
Customer
Contract expiry,
fixed
Contract expiry,
charterer's option
Viking Lady
Time charter
Aker BP
December, 2024
December, 2030
Viking Queen
Time charter
Wintershall
May, 2024
April, 2027
Viking Avant
Time charter
Equinor
December, 2025
December, 2028
Viking Energy
Time charter
Equinor
April, 2025
April, 2030
Viking Prince
Time charter
Aker BP
December, 2025
Viking Princess
Time charter
Wintershall
January, 2024
January, 2026
Viking Wind Power
Time charter
Siemens Gamesa
January, 2027
June, 2027
Subsea Viking
Time charter
Van Oord
March, 2028
August, 2028
Viking Vanquish
Sold in March 2023
Viking Vision
Layup
Veritas Viking
Layup
Vantage
Layup
Vessel in joint
venture
Contract type
Customer
Contract expiry,
fixed
Contract expiry,
charterer's option
Seven Viking
Time charter
Subsea 7
November, 2025
December, 2026
Future minimum lease terms per December 31, 2022, including all new contracts as at April 26, 2023, for
consolidated vessels on firm contracts have the following maturity (NOK thousands):
Next 1 year
513 000
1 to 5 years
973 000
After 5 years
13 000
Future minimum lease
1 499 000
The Group has operating lease contract on its vessels representing income. The leases have terms of between
12 and 62 months. As payments from the lessee to the Group is determined based on the fixed day rate agreed
in the contract, no portion of the payments varies other than the passage of time.
NOTE 23 - FINANCIAL INSTRUMENTS
(NOK thousands)
Capit
alised financial assets and liabilities
Capitalised value equals fair value, except for loans. For details of fair value loans, see the section on “Interest”
below. The Group does not practise hedge accounting, financial derivatives held for financial hedging which
are recorded at fair value.
31.12.2022
31.12.2021
Assets
Market-based shares for trading
9
9
Currency derivatives
0
363
Interest derivatives
62 180
17 042
Accounts receivable (Note 14)
141 759
130 942
Cash and cash equivalents (Note 16)
655 653
330 401
Other long-term receivables, OSEV
39 769
51 178
Total
899 370
529 934
Liabilities
Interest rate derivatives
0
6 677
Loans (Note 20)
1 139 476
1 976 112
Total
1 139 476
1 982 789
69
Currency
The Group has entered into currency derivative contracts as part of the management of the Group’s currency
exposure. The Group has no currency derivatives per December 31, 2022.
At December 31, 2021
Currency sold
Amount
Maturity
Exchange rate
(average)
Fair value
(MTM)
Currency derivatives
Currency futures for the sale of
current cash flow
EUR
1 220
2022
10,2987
363
1 220
363
All currency futures are recorded at fair value.
Interest
The Group has the following fixed rate agreements:
At December 31, 2022
Type
Currency
Floor
Cap/Swap
Maturity
NOK
principal
Fair value
(incl.
accrued
interest)
Annual
downscalin
g before
maturity
(average)
Fixed rate loan
NOK
3,36 %
27.03.2024
132 329
Variable
Fixed rate loan
NOK
3,41 %
13.09.2024
148 146
Variable
Cap
NOK
1,00 %
01.07.2025
150 000
8 993
None
Cap
NOK
1,00 %
15.07.2025
150 000
9 092
None
Cap
USD
1,00 %
01.07.2025
246 433
22 154
None
Cap
USD
1,00 %
15.07.2025
246 433
21 942
None
Unhedged
66 135
Total liabilities, hedged and
unhedged
1 139 476
62 180
The Group has in Q1 2023 unwinded the two caps in USD.
At December 31, 2021
Type
Currency
Floor
Cap/Swap
Maturity
NOK
principal
Fair value
(incl.
accrued
interest)
Annual
downscaling
before
maturity
(average)
Fixed rate loan
NOK
3,36 %
27.03.2024
142 392
Variable
Fixed rate loan
NOK
3,41 %
13.09.2024
158 355
Variable
Swap
USD
2,36 %
21.11.2022
176 388
-3 480
None
Swap
USD
2,27 %
12.12.2022
176 388
-3 197
None
Cap
NOK
1,00 %
01.07.2025
150 000
4 376
None
Cap
NOK
1,00 %
15.07.2025
150 000
4 382
None
Cap
USD
1,00 %
01.07.2025
220 485
4 231
None
Cap
USD
1,00 %
15.07.2025
220 485
4 053
None
Unhedged
581 620
Total liabilities, hedged and unhedged
1 976 112
10 365
At December 31, 2022, 94% (71%) of the Group’s loans were at fixed interest or swap/cap.
The Group has two fixed-interest loans in NOK with a maturity of 12 years originally (CIRR), which are recorded
at amortised cost in the balance sheet. If these loans were to be refinanced today with a new margin and money
market rate, and retained the same repayment profile, the net present value of the difference between the
current interest payments and the refinanced interest payments would be MNOK -3.0 (level 2, see Note 3). If
these loans were recorded at fair value, they would have been reported correspondingly lower.
See Note 20 for information on long-term loans.
70
Other information
No financial assets have been reclassified such that the valuation method has been changed from amortised
cost to fair value, or vice versa.
For assessment of fair value (MTM), see Note 3.
NOTE 24 - TRANSACTIONS WITH RELATED PARTIES
(NOK thousands)
The Group has some transactions with related parties, concerning crew hire, management services for vessel
operations, business and accounting services and leasing of offices. All transactions are based on the arm’s
length principle.
2022
2021
Lease of offices from AS Langevåg Senter
-8 477
-8 277
Lease of offices to Evik AS
678
586
Lease of apartment from Evik AS
-82
-79
Lease of offices to Bømmelfjord AS
773
595
Sale of other services to Eidesvik Invest AS
11
52
Lease of offices and other services to Signatur Management AS
952
800
Purchase of office services from Signatur Management AS
-22
0
Lease of stockroom and other services from Klubben Eiendom AS
-549
-473
Sale of office services and lease of apartment to Bømlo Skipservice AS
7
39
Purchase of technical and layup services from Bømlo Skipservice AS
-6 636
-6 380
Sale of crew and management services to Eidesvik Seven Chartering AS
94 356
71 769
Sale of management services to Eidesvik Seven AS
1 420
2 793
The balance sheet includes the following amounts resulting from transactions with related parties:
31.12.2022
31.12.2021
Accounts receivable
16 019
12 485
Accounts payable
-359
-1 489
Total
15 659
10 996
Shares owned/controlled by Board members/senior executives:
2022
2021
Eidesvik Invest AS (1)
37 200 000
37 200 000
John Egil Stangeland
30 000
30 000
Kristine Elisabeth Skeie
25 000
25 000
Bjørg Marit Eknes
25 000
25 000
Gitte Gard Talmo
500
500
Lauritz Eidesvik
200
200
(1) Eidesvik Invest AS is 55%-controlled by Bømmelfjord AS, where Borgny Eidesvik holds 20% of the shares
(A-shares), and Lauritz Eidesvik holds 20% of the shares (B-shares). The remaining 45% of Eidesvik Invest AS
is owned by Evik AS, where Lars Eidesvik indirectly holds 20% of the shares.
The Eidesvik Offshore ASA Group is a subsidiary of Eidesvik Invest AS, which is a subsidiary of the ultimate
parent company Bømmelfjord AS.
71
Remuneration to senior executives:
2022
Base salary
Bonus
Other
Pension costs
CEO Gitte Talmo
2 128
770
315
147
COO Arve Nilsen
1 350
312
215
122
CFO Helga Cotgrove
519
180
52
35
Former CEO Jan Fredrik Meling
252
0
1 493
414
Former COO Jan Lodden
1 127
0
56
62
Former CFO Tore Byberg
1 179
0
105
56
Total 2022
6 555
1 261
2 236
837
2021
Base salary
Bonus
Other
Pension costs
CEO Jan Fredrik Meling
2 224
384
137
385
COO Jan Lodden
1 730
291
108
125
CFO Tore Byberg
1 594
273
226
115
Total 2021
5 549
948
470
625
The Company has published a separate Report on Remuneration to the Board of Directors, CEO and Senior
Executives, available for download from the Company’s website.
In accordance to the company renumeration policy, a bonus scheme is established for CEO and senior
executives. Bonus scheme is based on company targets (75%) and individual targets (25%). Maximum bonus
is 35% of annual salary. The Board of Directors may temporarily deviate from any part of the guidelines if
deemed necessary to protect the long term interest and financial capacity of the Company or safeguard the
viability of the company.
The CEO has a mutual notice period of 6 months and is entitled to 6 months of severance pay on certain terms
per December 31, 2022.
Former CEO, Jan Fredrik Meling, retired from his position on December 31, 2021. Gitte Gard Talmo replaced
Meling effective from January 1, 2022. Meling has received 60% of his salary in 2022 and will also continue to
receive 60% in 2023. His pension costs has been covered by Eidesvik Offshore ASA in 2022, and will be
covered in 2023 as well.
COO Jan Lodden resigned from his position in June 2022. Arve Nilsen replaced Lodden effective from June 1,
2022.
CFO Tore Byberg resigned from his position in July 2022. Helga Cotgrove replaced Byberg effective from
September 19, 2022.
Remuneration of the Board
2022
2021
Arne Austreid
319
0
Borgny Eidesvik
303
279
Lars Eidesvik
243
236
John Egil Stangeland
243
236
Lauritz Eidesvik
263
246
Kristine Elisabeth Skeie
243
236
Bjørg Marit Eknes
177
0
Johnny Olson
46
0
Petter Lønning
0
88
Kolbein Rege
248
525
Synne Syrrist
126
279
Børre Lindanger
85
113
Tore Hettervik
112
35
2 407
2 273
The Board Remuneration Annual Change 5,57%
72
Board remuneration is decided by the General Meeting. Disbursements for 2022 are remuneration for the
previous year, 2021. 2022 remuneration will be decided on the next Annual General Meeting.
Arne Austreid, Bjørg Marit Eknes and Tore Hettervik were, respectively, elected as chair of the board member
and employee representative for the board in 2021. Johnny Olson were, respectively, elected as employee
representative for the board in 2022.
From AGM 2019, the employees have had one employee representative in the Board, and one deputy employee
representative. The total remuneration for these two representatives are equal to a original Board Member, and
the split is originally 70/30 between the two employee representatives, depending on the number of meetings
the deputy employee representative has attended. The employee representatives rotate on a yearly basis, from
July to July.
Nomination Committee
2022
2021
Per Åge Hauge
30
15
Ellen Hatteland*
20
10
Kjetil Eidesvik
20
10
Lauritz Eidesvik**
20
10
Kolbein Rege**
20
10
* At the Annual General Meeting in 2022, Kristine Klaveness replaced Ellen Hatteland in the Nomination
Committee.
** *This compensation is included in the table for remuneration of the board.
Remuneration is decided by the General Meeting. Disbursements for 2022 are remuneration for the previous
year, 2021.
From AGM 2020, the Nomination Committee was established. The remuneration fee for the Nomination
Committee in 2021 is only for the second half of 2020.
NOTE 25 - LIABILITIES AND UNEXPECTED EVENTS
The Company has no framework agreements or other liabilities per December 31, 2022.
NOTE 26 - EXCHANGE RATES
Average
exchange rate
2022
Exchange rate
31.12.2022
Average
exchange rate
2021
Exchange rate
31.12.2021
Euro
10,1040
10,5138
10,1648
9,9888
UK pound
11,8464
11,8541
11,8254
11,8875
US dollar
9,6245
9,8573
8,5991
8,8194
Exchange rates from the Norwegian Central Bank’s website.
73
NOTE 27 – SUBSEQUENT EVENTS AND OTHER INFORMATION
Refinancing
On February 22, 2023, Eidesvik announced that it had agreed on a term sheet with its financial institutions for
refinancing of its debt. On March 28, 2023, the final agreements and documentation were in place and the new
terms for the Group’s financing became effective. The new debt will mature on February 28, 2026, and hence
reclassify the majority of the outstanding debt from current liabilities to non-current liabilities. See Note 20 for
further information.
Edda Sun / Viking Reach
Eidesvik has formed an entity with Reach Subsea ASA (“Reach”). The entity will own and operate the Subsea
IMR vessel Viking Reach (former named Edda Sun). Eidesvik will own 50.1% of the new entity. The entity has
been financed by equity from both parties and around MNOK 150 of bank financing.
The vessel commenced on a 6-year time charter with Reach in the start of Q2 2023. Going forward the vessel
will be operated by Eidesvik.
Successful completion of private placement
Eidesvik successfully completed a private placement of MNOK 130, through an allocation of 10,833,333 Offer
Shares at a price per Offer Share of NOK 12 (the "Offer Price") on March 2, 2023. The private placement was
approved in an extraordinary shareholder meeting March 24, 2023. The net proceeds to the Company from the
Private Placement has been used to fund Eidesvik’ s share of the equity in the entity formed with Reach Subsea,
which main purpose is to acquire, own and operate the subsea IMR vessel "Viking Reach" (former named "Edda
Sun"), working capital for the JV and general corporate purposes. Eidesvik Invest AS, the Company's main
owner provided bridge financing of MNOK 96 as the completion of the acquisition of the vessel Viking Reach
was done before the private placement proceeds was received. MNOK 77.82 of the bridge financing was
converted to equity in the private placement. The residual is being repaid from the proceeds from the private
placement.
The board of the Company was given the authority by the extraordinary shareholder meeting held on March 24
2023, to carry out a subsequent offering of up to 2,000,000 new shares at the Offer Price, which, subject to
applicable securities law, will be directed towards the Company's existing shareholders at March 2, 2023.
New contracts
Wintershall Dea Norge AS declared an option to extend the contract for the supply vessel Viking Princess from
July 2023 in direct continuation of the current contract, extending the firm period to January 2024.
Eidesvik has been awarded a contract with Wintershall Dea Norge AS for the vessel Viking Queen. The firm
period is 12 months with options for further extensions. The new contract will commence in Q2, 2023.
Sale of vessel
Eidesvik MPSV AS, a wholly owned subsidiary of Eidesvik Offshore ASA, has sold the seismic vessel Viking
Vanquish. Delivery of the vessel took place at March 28, 2023. The sale of the vessel will result in an immaterial
accounting effect for Q1 2023.
74
Annual accounts – Parent Company
STATEMENT OF PROFIT AND LOSS – PARENT COMPANY
(NOK 1,000)
Note
1.1.-31.12.
2022
1.1.-31.12.
2021
Payroll etc.
1,2
8,878
5,643
Depreciation
3
0
105
Other operating expenses
4
8,663
8,538
Total operating expenses
17,542
14,286
Operating profit
-17,542
-14,286
Interest income from companies in the same
group
5,6
20,452
20,819
Other interest income
660
14
Other financial income
10,390
20,232
Impairment of financial assets
7
-576
-25,460
Interest expenses to companies in the same
group
5
-3,698
-3,631
Other financial expenses
-26
-4,197
Net financial items
27,202
7,776
Profit/loss before taxes
9,660
-6,510
Tax costs
8
0
0
Profit/loss for the year
9,660
-6,510
Allocation (coverage) of profit/loss for the
year
Transferred to/from other equity
9,660
-6,510
Total allocated (covered)
9,660
-6,510
75
STATEMENT OF BALANCE SHEET – PARENT COMPANY
(NOK 1,000)
Note
31.12.2022
31.12.2021
Assets
Tangible fixed assets
Buildings and land
8,921
8,921
Operating equipment
156
288
Total tangible fixed assets
3
9,077
9,209
Financial assets
Investments in subsidiaries
7
297,654
298,217
Loans to Group companies
5
70,778
200,021
Other financial assets
7
56
56
Pension funds
2
417
282
Total financial assets
368,905
498,576
Total non-current assets
377,982
507,784
Current assets
Receivables
Accounts receivable
347
0
Other receivables
0
4
Total receivables
347
4
Bank deposits, cash etc.
9
436,953
138,206
Total current assets
437,300
138,210
TOTAL ASSETS
815,282
645,994
76
STATEMENT OF BALANCE SHEET – PARENT COMPANY
(NOK 1,000)
Note
31.12.2022
31.12.2021
EQUITY AND LIABILITIES
Paid-in equity
Share capital
10,11
3,108
3,108
Share premium
11
177,275
177,275
Other paid-in equity
11
549
549
Total paid-in equity
180,932
180,932
Retained earnings
Other equity
299,560
289,899
Total retained earnings
299,560
289,899
Total equity
11
480,491
470,831
LIABILITIES
Other non-current liabilities
Liabilities to Group companies
5
332,383
165,008
Total other non-current liabilities
332,383
165,008
Current liabilities
Accounts payable
791
525
Public duties payable
412
502
Other current liabilities
1,206
9,128
Total current liabilities
2,408
10,155
Total liabilities
334,791
175,163
TOTAL EQUITY AND LIABILITIES
815,282
645,994
BØMLO, APRIL 26, 2023
Arne Austreid
Borgny Eidesvik
Lars Eidesvik
John Stangeland
Chair of the Board
Board member
Board member
Board member
Bjørg Marit Eknes
Lauritz Eidesvik
Kristine E. Skeie
Johnny Olson
Board member
Board member
Board member
Board member
Gitte Gard Talmo
CEO
77
STATEMENT OF CASH FLOWS – PARENT COMPANY
(NOK 1,000)
1.1-31.12
1.1-31.12
Note
2022
2021
Cash flow from operations
Payments to suppliers and employees
1,2,4
-18,240
-8,617
Interest received/paid
3,484
13
Net cash flows from operations
-14,756
-8,604
Cash flow from investment activities
Sale of tangible fixed assets
132
0
Sale of shares
0
285,078
Net cash flow from investment activities
132
285,078
Cash flow from financing activities
Changes in intercompany balances
5
313,371
-172,689
Net cash flow from financing activities
313,371
-172,689
Net increase (decrease) in cash and cash equivalents
9
298,747
103,785
Cash and cash equivalents at start of period
9
138,206
34,421
Cash and cash equivalents at end of period
436,953
138,206
78
NOTES TO THE ANNUAL ACCOUNTS – PARENT COMPANY
Accounting principles
The financial statements have been prepared in accordance with the Norwegian Accounting Act of 1998 and
generally accepted accounting principles.
Classification and valuation of balance sheet items
Current assets and short-term liabilities include items maturing within one year after the balance sheet date.
Other items are classified as fixed assets/long-term liabilities.
Current assets are valuated at the lower of acquisition cost and fair value. Short-term liabilities are capitalised
at nominal value at the time of establishment.
Non-current assets are valued at acquisition cost, but depreciated to fair value if the impairment in value is not
expected to be transient. Long-term liabilities are capitalised at nominal value at the time of establishment.
Accounts receivable
Accounts receivable and other receivables are listed in the balance sheet at fair value after deduction of
provisions for expected loss. Provisions for loss are made on the basis of individual assessments of individual
receivables. An unspecified provision is also made for other accounts receivable in order to cover presumed
loss.
Currency
Monetary items in foreign currency are valued according to the exchange rate at the end of the accounting
year.
Investments in subsidiaries/associated companies
Subsidiaries and associated companies are valued according to the cost method in the company accounts. The
investment is valued at acquisition cost for the shares, unless write-downs have been necessary. Group
contributions to subsidiaries, with taxes deducted, are listed as increased cost for shares. Dividends/group
contributions are recorded in the same year as the provision is made in the subsidiary/associated company.
When a dividend/group contribution substantially exceeds the share of retained profits after the acquisition, the
excess amount is treated as a repayment of invested capital, and is deducted from the value of the investment
in the balance sheet.
For loans to subsidiaries, refer to Note 5.
Tangible fixed assets
Tangible fixed assets are capitalised and depreciated over the useful life of the asset. Maintenance of fixed
assets is expensed on an ongoing basis under operating costs, while upgrades or improvements are added to
the cost of the asset and depreciated in step with the asset. The distinction between maintenance and upgrades
is calculated in relation to the condition of the asset when it was acquired.
Tax
The tax costs in the income statement include both tax payable for the period and the change in deferred taxes.
Deferred tax assets are calculated at 22% on the basis of the temporary differences that exist between
accounting and tax values, and losses carried forward for tax purposes at the end of the accounting year.
Temporary differences that increase and decrease taxes and that reverse or may reverse during the same
period are offset and netted off.
Pension liabilities
The Company finances its pension liabilities to the employees through a group pension scheme. Accounting is
done in line with the NRS 6 accounting standard for pension costs. Pension liabilities are calculated as the
present value of future pension benefits considered to be incurred on the balance sheet date, based on the fact
that employees acquire their pension rights evenly throughout their working lives. Pension funds are valued at
fair value and are netted against the pension liabilities for each pension scheme. Net pension funds are
presented as long-term receivables under financial assets. The net pension cost for the period is included in
payroll and social security costs, and consists of the pension entitlements for the period, interest costs on the
79
calculated pension liabilities, expected returns on the pension funds, recorded effects of changes in estimates
and pension plans, recorded effects of discrepancies between actual and expected returns, and accrued payroll
tax. The effects of changes in pension plans are expensed in the period in which they occur.
Cash flow statement
The cash flow statement has been prepared according to the direct method. Cash and cash equivalents include
cash, bank deposits, and other short-term liquid placements which can be converted to known cash amounts
immediately and without significant risk of bankruptcy and which mature in less than three months from the
date of acquisition.
NOTE 1 - PAYROLL COSTS, NUMBER OF EMPLOYEES, REMUNERATION,
LOANS TO EMPLOYEES
The Company had 1 employee at the end of the year. The Company has established an occupational pension
scheme.
In accordance to the company renumeration policy, a bonus scheme is established for CEO and senior
executives. Bonus scheme is based on company targets (75%) and individual targets (25%). Maximum bonus
is 35% of annual salary. The Board of Directors may temporarily deviate from any part of the guidelines if
deemed necessary to protect the long term interest and financial capacity of the Company or safeguard the
viability of the company.
The CEO has a mutual notice period of 6 months and is entitled to 6 months of severance pay on certain terms
per December 31, 2022.
Former CEO, Jan Fredrik Meling, retired from his position on December 31, 2021. Gitte Gard Talmo replaced
Meling effective from January 1, 2022. Meling has received 60% of his salary in 2022 and will also continue to
receive 60% in 2023. His pension costs has been covered by Eidesvik Offshore ASA in 2022, and will be
covered in 2023 as well.
Payroll costs 2022 2021
Salaries 2 678 2 486
Payroll tax 1 081 455
Pension costs 1 852 385
Board remuneration 2 477 2 308
Other remuneration 790 9
Total 8 878 5 643
Remuneration to the CEO: 2022 2021
Salary 2 128 2 486
Pension costs 147 385
Other remunerati on 1 085 9
Total 3 360 2 880
Remuneration to the Board: 2022 2021
Ar
ne Austrei d 319
0
Borgny Eidesvik 303
279
Lars Eidesvik 243
236
John Egil Stangeland 243
236
Lauritz Eidesvik 263
246
Kristine Elisabeth Skeie 243
236
Bjørg Ma rit Eknes
177
0
Johnny Olson
46
0
Petter Lønning
0
88
Kolbein Rege
248
525
Synne Syrri s t
126
279
Børre Lindanger
85
113
Tore Hettervik
112
35
2 407 2 273
The Board Remuneration Annual Change 5,57 %
80
Board remuneration is decided by the General Meeting. Disbursements for 2022 are remuneration for the
previous year, 2021. 2022 remuneration will be decided on the next Annual General Meeting.
Arne Austreid, Bjørg Marit Eknes and Tore Hettervik were, respectively, elected as chair of the board member
and employee representative for the board in 2021. Johnny Olson were, respectively, elected as employee
representative for the board in 2022.
From AGM 2019, the employees have had one employee representative in the Board, and one deputy employee
representative. The total remuneration for these two representatives are equal to a original Board Member, and
the split is originally 70/30 between the two employee representatives, depending on the number of meetings
the deputy employee representative has attended. The employee representatives rotate on a yearly basis, from
July to July.
* At the Annual General Meeting in 2022, Kristine Klaveness replaced Ellen Hatteland in the Nomination
Committee.
** *This compensation is included in the table for remuneration of the board.
Remuneration is decided by the General Meeting. Disbursements for 2022 are remuneration for the previous
year, 2021. From AGM 2020, the Nomination Committee was established. The remuneration fee for the
Nomination Committee in 2021 is only for the second half of 2020.
NOTE 2 - PENSION COSTS AND LIABILITIES
The Company’s pension schemes meet the requirements of the Mandatory Occupational Pensions Act.
The Company has pension schemes which cover its only employee. The schemes give rights to future benefits.
These depend mainly on the number of qualifying years, salary level at retirement and the amount of the
benefits from national insurance. The liabilities are covered through an insurance company.
Other members of the Nomination Committee 2022 2021
Per Åge Hauge 30
15
Ellen Hatteland* 20
10
Kjetil Eidesvik 20
10
Lauritz Eidesvik** 20
10
Kolbein Rege** 20
10
Auditor 2022 2021
Expenses to auditor are distributed as follows:
Statutory audit 790 825
Tax advice 48 0
Other certification services 160 0
Total expenses to the auditor excl. VAT 998 825
2022 2021
Estimated liability 3 899 3 520
Value of pension funds -4 317 -3 802
Under/over-funded -417 -282
Reconciliation of this year’s pension cost 2022 2021
Present value of this year’s pension contribution 214 207
Interest expense on the pension liability 4 4
Expected return on pension funds -10 -3
Administrative costs 36 29
Changes in this year’s pension contribution incl. interest and payroll tax 0 0
Net pension cost 275 268
The following economic and actuarial assumptions form the basis of the calculation:
2022 2021
Dis count rate 3,00 % 1,90 %
Return on pension assets 3,00 % 1,90 %
Wage growth
3,50 %
2,75 %
Pension adjustment 1,50 % 0,00 %
G adjustment 3,25 % 2,50 %
81
NOTE 3 - SUMMARY OF TANGIBLE FIXED ASSETS
NOTE 4 - OTHER OPERATING EXPENSES
Of which, from related parties:
Management and accounting services, MNOK 6.5 (MNOK 6.3) provided by the subsidiary Eidesvik AS.
The offices are leased from Langevåg Senter AS, a wholly-owned subsidiary of Eidesvik Invest AS, the
Company’s largest shareholder. The lease on the office runs to 2033, with 6 x 5-years options thereafter. The
gross lease cost is MNOK 6.5 (MNOK 6.3). The offices are subleased, 23% to companies related to the principal
shareholder, and 69% to the subsidiary Eidesvik AS. 8% of the premises are used by the lessor itself. The item
“Office lease” represents this share. The lease is presented as a net lease.
NOTE 5 - LONG-TERM RECEIVABLES AND LIABILITIES TO SUBSIDIARIES
The interest on the intercompany balances is calculated quarterly using 3-month NIBOR + 3% margin.
Residential
property
Transport
equipment
Inventory and
equipment
Non-depreciable
assets
Total
Acquisition cost 1 January 8 921 526 1 248 156 10 851
Addition 0 0 0 0 0
Disposal 0 526 0 0 526
Acquisition cost 31 December 8 921 - 1 248 156 10 325
Accumulated depreciation 1 January 0 289 1 248 0 1 537
Depreciation in the year 0 0 0 0 0
Reduction in depreciation 0 -289 0 0 -289
Accumulated depreciation 31 December 0 0 1 248 0 1 248
Booked value 31 December 8 921 0 0 156 9 077
Depreciation rates 0 % 20 % 10 % 0
Depreciation method Linear Linear
2 022 2021
Management and accounting 6 500 6 325
Investor relations costs 612 531
Statutory audit 843 934
Consultant/legal advice 317 766
Office lease 542 538
Margin reinvoice office lease -1 120 -1 001
Other reinvoices -415 -203
Other expenses 1 318 647
Total other operating expenses 8 664 8 538
Receivables 2022 2021
Eidesvik Management AS 3 415 3 256
Eidesvik Supply AS 43 531 33 727
Eidesvik Neptun AS 0 164 658
Eidesvik Shipping International AS 6 900 0
Eidesvik Shipping II AS 18 552 0
Total (*) 72 398 201 641
* Loss on account receivable pr 31.12.22 is MNOK 1,6 related to Eidesvik Management AS
Liabilities 2022 2021
Eidesvik AS 51 288 51 143
Eidesvik Shipping AS 77 079 103 181
Eidesvik Shipping II AS 0 9 500
Eidesvik Neptun AS 203 594 0
Eidesvik MPSV AS 422 1 184
Total 332 383 165 008
82
NOTE 6 – LONG-TERM LIABILITIES
Financial risk
The Company has provided guarantees for all ship mortgage debt in the consolidated subsidiaries. The
guarantees involve substantial risk. The Company has no currency risk. For more details, see the discussion
of financial risk management in Note 3 to the consolidated accounts.
NOTE 7 - INVESTMENTS IN SUBSIDIARIES AND ASSOCIATED COMPANIES
Impairments in 2022 is related to impairments in Hordaland Maritime Miljøselskap AS (TNOK 231), Eidesvik
Shipping International (TNOK 104), Eidesvik Management (TNOK 0,94) and Norsk Rederihelsetjeneste AS
(TNOK 218).
Impairments in 2021 was MNOK 111.4 related to impairments in Eidesvik Shipping AS (MNOK 1.4) and Eidesvik
Shipping II (MNOK 110).
The impairments in Eidesvik Shipping II was associated with the conversion of the receivable to equity.
Reversed impairments in 2021 was MNOK 47.6 related to Eidesvik Neptun AS.
Company Share capital
Owner share /
voting share
Number Nominal
Book value
Equity at
31.12.2022 (*)
Profit 2022 (*)
Eidesvik Shipping AS 170,749 100 % 291 380 586 162 638 222 785 111 665
Eidesvik AS 11 000 100 % 11 000 1 000 76 720 124 713 -12 081
Eidesvik Shipping Int. AS 100 100 % 100 1 000 0 -16 958 -11 208
Eidesvik Subsea Vessels AS 100 100 % 1 000 100 112 43 854 22
Hordaland Maritime Miljøs. AS 4483 91 % 39 933 100 332 365 -70
Eidesvik Management AS 100 100 % 1 000 100 0 -1 860 -216
Norsk Rederihelsetjeneste AS 100 100 % 100 1 000 566 566 74
Eidesvik Maritime AS 100 100 % 1 000 100 112 571 2 022
Eidesvik Neptun II AS 88 74,75 % 747 474 0,10 75 88 2 558
Eidesvik Shipping II AS 100 100 % 1 1 000 9 501 -5 279 -5 969
Eidesvik UK Ltd. 0 100 % 1 1 1 584 -70
Eidesvik Neptun AS 792 74,75 % 594 0,1 47 600 250 136 216 761
Total 297 655 619 565 303 489
Company Share capital
Owner share /
voting share
Number Nominal
Book value
Equity at
31.12.2022 (*)
Profit 2022(*)
Eidesvik Seven Chartering AS 100 50 % 5000 10 56
32 886 2 272
Total 56
Company Share capital
Owner share /
voting share
Number Nominal
Book value
Equity at
31.12.2021
Profit 2021
(*)
Eidesvik Shipping AS 170,749 100 % 291 380 586 162 638 111 322 -281 366
Eidesvik AS 11 000 100 % 11 000 1 000 76 720 133 059 -6 077
Eidesvik Shipping Int. AS 100 100 % 100 1 000 104 -5 336 -12 429
Eidesvik Subsea Vessels AS 100 100 % 1 000 100 112 43 840 52
Hordaland Maritime Miljøs. AS 4483 91 % 39 933 100 563 467 -39
Eidesvik Management AS 100 100 % 1 000 100 9 -1 636 -109
Norsk Rederihelsetjeneste AS 100 100 % 100 1 000 784 126 -352
Eidesvik Maritime AS 100 100 % 1 000 100 112 12 2 697
Eidesvik Neptun II AS 88 74,75 % 747 474 0,10 75 -11 664 -34 023
Eidesvik Shipping II AS 100 100 % 1 1 000 9 501 690 -19 168
Eidesvik UK Ltd. 0 100 % 1 1 1 61 -5
Eidesvik Neptun AS 792 74,75 % 594 0,1 47 600 63 631 222 896
Total 298 217 334 572 -127 923
Associated companes
Company Share capital
Owner share /
voting share
Number Nominal
Book value
Equity at
31.12.2021
Profit 2021(*)
Eidesvik Seven Chartering AS 100 50 % 5000 10 56
30 670 3 723
Total 56
83
NOTE 8 - TAXES
Tax effect of temporary differences and loss carry-forwards which have given rise to deferred tax and deferred
tax assets, broken down by categories of temporary differences:
No deferred tax assets have been posted.
NOTE 9 – BANK DEPOSITS
Of the MNOK 437.0 (MNOK 138.2) in bank deposits, restricted tax funds represent MNOK 0.3 (MNOK 0.4).
NOTE 10 - SHARE CAPITAL AND SHAREHOLDER INFORMATION
The Company’s share capital consists of 62,150,000 shares at NOK 0.05 each. All shares have equal voting
rights.
For the 20 largest shareholders in Eidesvik Offshore ASA as at 31.12.2022, see Note 17 to the consolidated
accounts.
(1) Eidesvik Invest AS is 55%-controlled by Bømmelfjord AS, where Borgny Eidesvik holds 20% of the shares
(A-shares), and Lauritz Eidesvik holds 20% of the shares (B-shares). The remaining 45% of Eidesvik Invest AS
is owned by EVIK AS, where Lars Eidesvik indirectly holds 20% of the shares.
2022 2021
Recognised tax on ordinary profit:
Tax payable 0 0
Change in deferred tax assets 0 0
Tax expense on ordinary profit 0 0
Taxable income:
Ordi na ry profi t before ta x 9 660 -6 510
Permanent differences -7 407 9 297
Changes in temporary differences -293 -355
Group contributions made 0 0
Us e of l os s carry-forward -1 960 -2 432
Taxable Income 0 0
Tax payable in the balance sheet:
Tax payable on profit for the year 0 0
Tax payable on group contributions made 0 0
Total tax payable in the balance sheet 0 0
2022 2021 Cha
nge
Tangible fixed assets -120 -149 -29
Receivables 0 -127 -127
Pension funds 417 281 -136
Total 297 5 -293
Accumulated loss carry-forward -1 360 -3 320 -1 960
Basis for calculating deferred tax -1 063 -3 315 -2 252
Deferred tax assets (22%) -234 -729 -495
Effect of change of tax rate 0 0 0
2022 2021
Eidesvik Invest AS (1) 37 200 000 37 200 000
John Egil Stangeland 30 000 30 000
Kristine Elisabeth Skeie 25 000 25 000
Bjørg Marit Eknes 25 000 25 000
Gitte Gard Talmo 500 500
Lauritz Eidesvik 200 200
84
NOTE 11 - EQUITY
NOTE 12 - SUBSEQUENT EVENTS
Refinancing
On February 22, 2023, Eidesvik announced that it had agreed on a term sheet with its financial institutions for
refinancing of its debt. On March 28, 2023, the final agreements and documentation were in place and the
new terms for the Group’s financing became effective. The new debt will mature on February 28, 2026, and
hence reclassify the majority of the outstanding debt from current liabilities to non-current liabilities. See
Note 20 in the consolidated accounts for further information.
Successful completion of private placement
Eidesvik successfully completed a private placement of MNOK 130, through an allocation of 10,833,333 Offer
Shares at a price per Offer Share of NOK 12 (the "Offer Price") on March 2, 2023. The private placement was
approved in an extraordinary shareholder meeting March 24, 2023. The net proceeds to the Company from the
Private Placement has been used to fund Eidesvik’ s share of the equity in the entity formed with Reach Subsea,
which main purpose is to acquire, own and operate the subsea IMR vessel "Viking Reach" (former named "Edda
Sun"), working capital for the JV and general corporate purposes. Eidesvik Invest AS, the Company's main
owner provided bridge financing of MNOK 96 as the completion of the acquisition of the vessel Viking Reach
was done before the private placement proceeds was received. MNOK 77.82 of the bridge financing was
converted to equity in the private placement. The residual is being repaid from the proceeds from the private
placement.
The board of the Company was given the authority by the extraordinary shareholder meeting held on March 24
2023, to carry out a subsequent offering of up to 2,000,000 new shares at the Offer Price, which, subject to
applicable securities law, will be directed towards the Company's existing shareholders at March 2, 2023.
Other paid-in Other
Share capital Share premium equity equity Total
Equity 31.12.21 3 108 177 275 549 289 899 470 831
Profit/loss for the year 9 660 9 660
Equity 31.12.22 3 108 177 275 549 299 559 480 491
85
APPENDIX 1 – ALTERNATIVE PERFORMANCE MEASURES DEFINITIONS
The Group’s financial information is prepared in accordance with international financial reporting standards
(IFRS). In addition, the Group discloses alternative performance measures as a supplement to the financial
statement prepared in accordance with IFRS. Such performance measures are used to provide better insight
into the operating performance, financing and future prospects of the Group and are frequently used by
securities analysts, investors and other interested parties.
The definitions of these measures are as follows:
• Co
ntract coverage: Number of future sold days compared with total actual available days (incl.
vessels in layup), excluding options
.
• Backlog: Sum of undiscounted revenue related to secured contracts in the future.
• Utilization: Actual days with revenue divided by total actual available days.
• Equity Ratio: Equity divided by total assets
• Net interest bearing debt: Interest bearing debt less current and non-current interest bearing
receivables and cash and cash equivalents. The use of term “net debt” does not necessarily mean
cash included in the calculation are available to settle debt if included in the term. Reference is
made to Note 12.
• EBITDA: Operating result (earnings) before depreciation, impairment, amortisation, net financial
costs and taxes is a key financial parameter. The term is useful for assessing the profitability of
operations, as it is based on variable costs and excludes depreciation, impairment and amortised
costs related to investments. EBITDA is also important in evaluating performance relative to
competitors. See table below for matching to the accounts.
• EBIT: Operating result (earnings) before net financial costs and taxes. See table below for
matching to the accounts.
• Working capital: Current assets less short-term liabilities.
• Minimum market value clause: Booked value of an asset shall not be lower than a given ratio
compared to outstanding debt on the same asset.
2022 2021
1.1 - 31.12 1.1 - 31.12
Total operating income 918 547 587 798
Total operating expenses (424 335) (409 086)
EBITDA 494 213 178 712
Ordinary depreciation
(142 907) (207 961)
Impairment on assets 209 237 143 797
Profit from Joint Ventures
(9 120) (5 916)
EBIT 551 423 108 633
86
87
88
89
90
86
91
Eidesvik Offshore ASA
Vestvikvegen 1
NO-5443 Bømlo
Norway
+47 53 44 80 00
office@eidesvik.no
www.eidesvik.no
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