2021
Integrated Annual Report
2021
DOF INTEGRATED ANNUAL REPORT
DOF's reporting 2021
Sustainability
DOF has reported in the areas of sustainability to the GRI standards measuring economic,
environment, and social aspects since 2014. This, along with our participation in Carbon
Disclosure Project over the last eleven years, has driven engagement with stakeholder
groups and improved management and performance in these areas. DOF's financial position
is
however not sustainable and the Group is dependent on a robust long-term financial solution.
Transparency
Our vision and strategic ambitions to create broad stakeholder value are set out in this
integrated report. DOF is committed to the World Economic Forum's Pillars - People, Planet,
Prosperity, and Principles. We follow the framework to bring together the measures of
stakeholder value, aligning the non-financial reporting with financial reporting, to clearly
communicate to all stakeholders sustainability initiatives, targets and measures for the
next strategic period.
Environmental, Social, and Corporate Governance
The ESG (Environmental, Social, and Corporate Governance) factbook in the final section
of this report contains extensive detail on our company wide performance in 2021 and
includes future ambitions, organised around DOF values. This document can be found in
digital format on our website: www.dof.com/sustainability.
YEARS OF
19 May 2022 1
st
quarter 2022
24 Aug 2022 2
n
d
quarter 2022
15 Nov 2022 3
rd
quarter 2022
24 Feb 2023 4
th
quarter 2022
The dates are subject to change.
Financial calendar 2022
Preliminary dates for the publishing of the results for DOF ASA:
In our report
2021 in brief
Financial highlights 6
CEO statement 8
This is DOF 10
Operational highlights 12
Shaping DOF for the future
People 16
Planet 20
Prosperity 24
Principles 28
Board of Directors
The Board of Directors 32
Report of the Board of Directors 34
Corporate Governance 46
Financial results
Group consolidated financial accounts 54
Financial results 108
Auditor's report 126
Appendix A 131
Our ESG factbook
Introduction 132
Safe the RITE way 135
Creating value 136
Measuring our results & setting ambitions
People 138
Planet 148
Prosperity 156
Principles 162
Appendix B 172
Auditor's report 200
dof integrated annual report 2021
Financial performance
Key figures DOF Group
Amounts in NOK million Management reporting Financial reporting
From the Profit or Loss
2021 2020 2021 2020
Operating income
7 544 7 582 6 356 6 212
Operating expenses
-4 754 -4 591 -4 278 -4 107
Operating profit (loss) before depreciation and write downs -
EBITDA
2 790 2 990 2 078 2 105
Depreciation
-1 334 -1 097 -1 030 -856
Impairment
-510 -3 665 -412 -3 258
Operating profit (loss) - EBIT
946 -1 771 636 -2 010
Net finance costs
-1 131 -1 974 -941 -1 629
Unrealised currency gain (loss)
-358 -1 120 -311 -1 112
Net changes in gain (loss) on derivatives
40 -56 40 -56
Net financial items
-1 449 -3 150 -1 212 -2 797
Profit (loss) before taxes
-504 -4 921 -576 -4 806
Tax income (expenses)
-126 -38 -54 -153
Profit (loss) for the year
-630 -4 959 -630 -4 959
Non-controlling interests
-23 -49 -23 -49
From the Balance sheet
Vessels and other non-current assets
18 532 19 188 15 074 15 462
Current assets
4 456 4 031 3 877 3 531
Total assets
22 988 23 219 18 951 18 993
Interest free debt
1 990 1 876 1 676 1 635
Net financing of the entity
20 998 21 343 17 275 17 357
Interest bearing debt
22 324 22 241 18 601 18 255
Equity
-1 326 -898 -1 326 -898
Key Figures
Current ratio
1) 0.22 0.20 0.19 0.18
Equity ratio
2) -6% -4% -7% -5%
Capex
3) 1 411 448 1 031 303
Operating margin
4) 37% 39% 33% 34%
Return on equity ratio
5) 48% 552% 48% 552%
Earnings per share (NOK)
6) -1.92 -15.51 -1.92 -15.51
Diluted earnings per share (NOK)
7) -1.92 -15.51 -1.92 -15.51
Average number of shares in the period
316 456 167 316 456 167 316 456 167 316 456 167
Number of shares incl mandatorily convertible shares
316 456 167 316 456 167 316 456 167 316 456 167
Outstanding number of shares
316 456 167 308 962 779 316 456 167 308 962 779
1) Current assets/Current liabilities
2) Equity/Total assets
3) Capex, see note 13
4) Operating result before depreciation and impairment loss/Operating income
5) Profit for the year/Booked equity
6) Majority share of profit for the year/Average number of shares. See note 12
7) Majority share of profit for the year/Potential average number of shares. See note 12
An overview of our 2021 financial performance
For further information about the management reporting see note 5 and the Appendix A.
6
dof integrated annual report 2021
Revenue per segment *)
PSV 6%
AHTS 15%
Subsea 79%
EBITDA per segment *)
PSV 4%
AHTS 18%
Subsea 78%
* Based on management reporting.
2014
0
12.000
10.000
8.000
6.000
4.000
2.000
2015 2016 2018 2019 2020 20212017
0%
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
NOK million
0
Operational development
Operating revenue
EBITDA
Operating margin
0
35.000
30.000
25.000
20.000
15.000
10.000
5.000
20152014 2016 2017 2018 2019 2020 2021
NOK million
-5.000
Equity development
Equity
Total assets
7
dof integrated annual report 2021
Delivering our
strategic priorities
From the CEO
As we publish this report, the global community is
witnessing the invasion of Ukraine. Our team, through
a fundraising drive, will provide financial support to the
Red Cross and their actions to aid the humanitarian
crisis of Ukrainian refugees. Commercially, 2022 will
undoubtedly be a year that requires strong global
governance and eective risk management eorts. We
have not identified any potential exposure to assets or
operations in Eastern Europe, specifically Ukraine and
Russia. We will draw on our own, deeply ingrained
pillars of corporate governance and ethical behaviour to
navigate the complexity of geopolitical challenges that
may unfold in the coming year.
The discussions with the lenders regarding a debt
restructuring of the Group has been ongoing through
the year and it has been challenging to operate in an
environment with short-term standstill periods. The
discussions with the creditors have been constructive, but
at the date of this report a final refinancing solution is
not yet in place which we strongly regret. The Group
is short-term dependent on extension of the standstill
periods and long-term on a comprehensive refinancing
solution to continue as going concern.
Looking back at 2021, new variants of COVID-19 and
the resulting challenges continued to prove the resolve
of our organisation and people. I am proud to say, again
we overcome the challenges together and, although
there have been significant operational interruptions,
the organisation has shown its ability to quickly adapt
and deliver to or above the high expectations of our
clients. As always, our values and the professionalism
of our team have been the foundation for maintaining
operations safely.
We first reported environmental, social, and economic
performance, our objectives, and our results together
in the 2020 annual report, and we continued to do
so on a quarterly basis in 2021. Despite challenging
market conditions, DOF continued to meet stakeholder
expectations and strengthened our eorts and focus on
sustainability in 2021 and beyond.
Financial highlights
The Group achieved an EBITDA of NOK 2,790 million
in 2021 (management reporting) which is a satisfactory
operational result as COVID-19 continued to impact the
operations throughout the year. The main contribution
has been from the subsea segment where we have
experienced a significant growth in the activities within
the subsea project business, especially in the 2
nd
half
of the year. The performance from the PSV and AHTS
segment was slightly lower than what the Group achieved
in 2020. The Group EBIT was NOK 946 million and
was less impacted by impairments.
Operational highlights
The markets continued to be challenging at the start
of the year, but the overall activity started to increase
towards the end of the 2
nd
quarter, especially in the
Atlantic and the Asia-Pacific regions, resulting in good
performance from these regions the remainder of the
year. The Brazil and US regions followed up, and with
several new tenders towards the end of the year in Brazil.
In total, the Group achieved a utilisation rate of 78% in
2021. COVID-19 has unfortunately impacted the costs
and has also resulted in o-hire for parts of the fleet,
especially in Brazil where the organisation successfully
has managed to protect the employees and kept the
operations close to normal. The PLSV fleet continued to
operate on firm contracts through the year and achieved
an utilisation rate of 90%.
The Group’s fleet has decreased through the year as four
vessels have been sold and one vessel has been recycled.
None of the sold vessels were of strategic importance
for the Group.
The subsea fleet has slightly increased its exposure to
the renewable markets where the North Sea has been the
main market. The Hywind Tampen project in the North
Sea is the most important project and is expected to
highly impact the activity for the Atlantic region in 2022.
The Group has, through the year, secured several new
contracts with a value of NOK 5.1 billion, and some of
them are worth highlighting:
• Two 3-year contracts with Petrobras for the PLSVs,
Skandi Vitoria & Skandi Niteroi.
• Multiple 1-year AHTS contracts with Petrobras in Brazil.
• Multiple 1-year PSV contracts with various clients in
the North Sea.
• Subsea project contracts with Beach Energy and Esso
Australia in the Asia-Pacific regions.
The total backlog by year-end was NOK 14.4 billion.
Due to high tender activity, we expect the backlog to
increase during the 1
st
half of 2022.
Safeguarding our People
Wherever we operate, safety is our priority, and we aim
to be an incident-free organisation.
COVID-19 lead to multiple and rapidly changing travel
restrictions, resulting in dierent patterns of personnel
deployment and some loss of the deep awareness in safety
culture across the fleet.
In the last quarter of 2021 we saw a significant increase in
injuries, however they were of minor risk level. The root causes
are connected to lack of awareness and fatigue in connect
to the Omicron variant. Our eorts to ensure we create
a safe working environment are a continuous undertaking.
8
dof integrated annual report 2021
Safety means protecting and empowering our employees
to stop unsafe or inappropriate actions. In 2021, three
cases of sexual harassment were reported through the
DOF ethics helpline. These cases were immediately
investigated and concluded, resulting in removal of
offenders. Protocols failed and we have implemented
the improvements learned from these cases. We do not
tolerate harassment of any kind in our global organisation
where diversity is a key strength in our industry.
Sustainable Environment
Our actions to reduce greenhouse gas emissions and
manage environmental impacts are ongoing. We use a
combination of technical solutions, such as shore power
and battery packs, and an organisational approach through
environmental management systems and strategy. Our
2021 CDP score of B maintains DOF among leaders in
our industry and we strive to return to CDP’s A-list in
2022. In May, DOF was named among Europe’s Climate
Leaders 2021 by the Financial Times of London.
The Kongsberg Maritime and DOF R&D project “Intelligent
Efficiency” was delivered in the Q4 with promising
results. The project now moves to the implementation
phase, to be deployed on suitable vessels in Q3 2022.
This predictive, intelligent, and dynamic guidance tool
will act as the foundation for the Group to simplify
operational complexity with objective measurement,
enabling optimal utilisation and a more sustainable
fleet management. Conservative calculations estimate
a reduction in CO2 emissions of 5-10%, depending on
vessel type and operational pattern.
Employees
The key to DOF’s success remains unchanged – our
people. The market in which we operate has continued
to be challenging, but we have seen a headcount growth
of 22% in 2021 as we have adapted the workforce with
current market demands. At the end of 2021 there were
3,820 people in the Group.
UN Sustainable Development Goals, Human Rights
and Business
DOF’s practices are consistent with the UN Guiding Principles
on Human Rights and Business. The organisation operates
in compliance with fundamental labour standards. It is
gratifying that Amnesty International has for the second
year in a row acknowledged DOF as one of the top-five
global companies based in the Nordics with the best score
related to human rights and employer responsibility.
Continuous improvement of our operations
Improvement projects have been carried out through
the Group’s value chain, focusing on standardisation
and improved eciency. We will continue this eort to
be competitive. Defining and measuring environmental
sustainability aspects and risks associated with our business
activities is important, and investment in systems and
equipment have been made to record, understand, and
improve our environmental performance, and secure a
sustainable future.
Outlook
We cautiously expect the markets to improve in 2022
as we see higher bidding activity and already have a
strong starting point with our backlog. We also expect
a volatile but improved spot market for PSV and AHTS
in the North Sea. Encouragingly in 2022, we have
already seen increased activity. I strongly believe that
our global presence and our business model strengthens
our position. Our focus will be to keep our people safe,
win and execute contracts, and secure repeat business
with our clients.
Thank you for your support
I extend thanks to our clients and partners for trusting
us with their operations in a year of high uncertainty.
We strive to be the preferred and responsible oshore
partner, and we will continue to do our best to meet,
and even beat expectations.
Finally, I want to express my gratitude to every employee
and contractor for their extra eort during these dicult
times. Thank you. The teamwork exhibited by the
organisation is inspiring and has helped to both make
sure that we can operate close to normal levels, and,
most importantly, keep everybody safe.
Bergen, 6
th
of April 2022
Mons S. Aase
Chief Executive Ocer
9
dof integrated annual report 2021
Regional
employee
split
6 %
North America
No matter where DOF operates in the world,
safety is held as the highest priority.
This is DOF
Company overview
Key employee takeaways *
Company overview
DOF is a leading provider of integrated
subsea project and marine services to the
global oshore energ y market. Established
in Austevoll in 1981, DOF has continued a
proud tradition of delivering safe and quality
services to our customers.
Our global footprint, excellent customer
relations, combined with our expertise,
high-quality vessels, and strong safety culture
are central to future success in an evolving
market. Over the last decade the Company
has invested in key regions such as the
Atlantic, South America, North America, and
Asia-Pacific.
DOF has a unique ability to utilise people
and assets from across the marine and
subsea organisations to seamlessly deliver
multi-discipline services from a single company.
DOF operates in three segments of the
oshore services market, strategically defined
by activities and vessel types: PSV (Platform
Supply Vessels), AHTS (Anchor Handling Tug
Supply vessels), and Subsea (Subsea vessels
and Subsea engineering services).
As of 31
st
of December 2021, DOF has a global
workforce of 3,820 people and a total fleet
of 59 vessels, of which eight vessels are on
management or hired in.
* All totals as of year-end 2021.
19 %
Asia-Pacific
25 %
Atlantic
50 %
South America
A global
workforce of
3,820 people
and a fleet
comprising
59 vessels.
13 %
female
87 %
male
Gender
representation
Number of employees 2021
2014
2015
2016
2017
2018
2019
2020
2021
1,0000 2,000 3,000 4,000 5,000
10
dof integrated annual report 2021
ASIAPACIFIC REGION
BERGEN
AUSTEVOLL HQ
ABERDEEN
LUANDA
ST. JOHN’S
HOUSTON
RIO DE JANEIRO
BUENOS AIRES
ATLANTIC REGION
SOUTH AMERICA REGION
NORTH AMERICA REGION
MACAÉ
PERTH
SINGAPORE
MANILA
A trusted partner for offshore operations
Subsea Services
Integrated subsea services; wherever, whenever needed.
Project
Management
Field
Development
Field
Production
Field
Abandonment
$
Marine Services
Bringing award-winning capability to the offshore sector.
World Class
Fleet
Marine
Management
Dedicated
Crews
Applied
Technology
15
AHTS
2
AUVs
71
ROVs
20
Offices worldwide
3,820
Skilled employees
14
PSV
30
Subsea
11
dof integrated annual report 2021
Q1 202
GENERAL COMMENTS
Low activity in all regions.
Average utilisation fleet 67% (81%).
MAIN CONTRACT AWARDS & EVENTS
Skandi Kvitsøy awarded 1-year
+ 2x1-year options in the North Sea.
Skandi Texel (built 2006) and
Skandi Buchan (built 2002 ) sold.
Skandi Admiral (built 1999) recycled.
Skandi Gamma awarded 2-year
+ 2x1-year options with Ithaca Energy
(UK) and two PSVs awarded contracts
for periods of 150 days in 2021 and
270 days in 2022 in Latin America.
Skandi Constructor awarded
160 days for offshore wind
with Siemens Gamesa.
CAPITAL STRUCTURE
Discussions with the lenders continued
and standstill agreements with the
secured lenders and bondholders were
extended until 30
th
of April 2021.
Q2 2021
GENERAL COMMENTS
Continued challenging markets, but
increased activity within the subsea regions.
Average utilisation fleet 80% (70%).
MAIN CONTRACT AWARDS & EVENTS
Geograph (built 2007) sold.
Awarded multiple contracts for
Skandi Acergy, Skandi Skansen,
Skandi Iceman, Skandi Hera and
a third-party vessel including
project management, engineering,
procurement and logistics for
a key renewable client.
Operations
Operational highlights in 2021
General comments to the 2021
The challenging markets continued into 2021,
however from the 2
nd
quarter the Group experienced
increased demand within the subsea project
markets. The AHTS and PSV markets continued
to be weak, but the utilisation and earnings were
slightly higher versus 2020.
The operations have been highly impacted by
COVID-19 throughout the year especially in Brazil,
which has resulted in high costs and o-hire for
this part of the fleet.
The Group has, through the year, secured new
contracts with a value of NOK 5.1 billion (NOK
6.2 billion). The backlog by year-end was NOK
14.1 billion.
The discussions with the lenders on a debt
restructuring of the Group has continued through
the year. By the date of this report a refinancing
solution is not in place.
Key takeaways *
7.5 Billion
Total revenue
(management reporting)
78%
Average fleet utilisation
for 2021
14.1 Billion
Contract backlog and excluding options
(includes JV backlog of 5.4 billion)
* All totals as of year-end 2021 and all figures in NOK.
12
dof integrated annual report 2021
Q2 2021 CONTINUED
Awarded multiple vessels and
ROV contracts in Brazil on seismic
and subsea projects.
CAPITAL STRUCTURE
Discussions with the lenders continued
and standstill agreements with the
secured lenders and bondholders were
extended until 30
th
of September 2021.
Q3 202
GENERAL COMMENTS
Increased activity in all regions.
Average utilisation fleet 83% (71%).
MAIN CONTRACT AWARDS & EVENTS
Skandi Paraty awarded 1-year
extension with Petrobras.
The KDS JV AS, (a DOF Subsea and
Aker Solutions JV), awarded subsea
decommissioning contract with DNO,
including engineering, preparation,
removal & disposal work (EPRD) of
associated subsea hardware, utilising
Skandi Acergy.
Skandi Seven awarded a 6-month
contract extension in Africa, including
FSV services, project management,
engineering, procurement and logistical
services.
The DOF Subsea Asia-Pacific region
awarded multiple contracts with
minimum 8-month vessel utilisation
and project scopes.
PLSVs, Skandi Vitoria & Skandi
Niteroi, awarded 3-year contracts
with Petrobras.
Skandi Achiever awarded 1-year
contract extension with Petrobras.
Q3 2021 CONTINUED
Skandi Neptune agreed sold to inter-
national buyer with delivery in 2022.
Skandi Botafogo awarded 3-year
contract with Petrobras.
Skandi Amazonas awarded 1-year
contract extension with Petrobras.
CAPITAL STRUCTURE
Discussions with the lenders
continued and standstill agreements
with the secured lenders and
bondholders were extended until
31
st
of October 2021.
DOF Subsea prepaid a loan facility of
USD 47 million at a significant discount.
Q4 202
GENERAL COMMENTS
High utilisation in all segments and good
performance from the subsea regions.
Average utilisation fleet 82% (68%).
MAIN CONTRACT AWARDS & EVENTS
Geosund (built 2001) was agreed sold
with delivery 2022.
DOF Subsea Asia-Pacific region
awarded a contract with Beach
Energy, including project management,
engineering, fabrication, transportation
and installation services.
CAPITAL STRUCTURE
Discussions with the lenders
continued and standstill agreements
with the secured lenders and
bondholders were extended
until 31
st
of January 2022
.
2022
MAIN CONTRACT AWARDS & EVENTS
DOF Subsea Atlantic awarded contract
with key renewable's client
utilising Skandi
Acergy in the North Sea and Skandi
Constructor in Trinidad and Tobago.
DOF Subsea Asia-Pacific region awarded
3-year contract + 2x1-year options with
Esso Australia Pty Ltd. to provide
a Multi-Purpose Supply Vessel.
The Jones Act compliant vessel Chloe
Candies chartered in for a firm period
of one year.
Skandi Sotra (built 2003), Skandi Rona
(built 2002), Skandi Foula (built 2002),
and Geosea (built 2002) agreed sold.
Skandi Mongstad awarded 3-year and
Skandi Vega 2-year contract extension
with Equinor Energy.
Skandi Kvitsøy awarded 1-year extension
with Shell UK.
DOF Subsea Australia awarded
Woodside Energy Limited's Enfield XT
Retrieval and Offshore Support Services
contract utilising Skandi Hercules.
DOF Subsea USA awarded SURF
project for Skandi Constructor from
Vaalco Energy at the Etame field,
offshore Gabon.
DOF Subsea awarded new contracts
with Renewables and Oil & Gas utilising
Skandi Acergy, Skandi Constructor,
Skandi Hera, and selected third-party
vessels for 185 vessel days.
CAPITAL STRUCTURE
Discussion with lenders continued
and standstill agreements with the
secured lenders and bondholders were
extended until 30
th
of April 2022.
13
dof integrated annual report 2021
The DOF Group’s updated vision reflects changing conditions and responds to stakeholder
expectations. We aim to be a trusted and leading partner delivering services globally for
a sustainable utilisation of offshore energy and other subsea resources. Our strategy for
sustainable value growth will be achieved via our strategic ambition in three key areas:
A debt structure, business model
and portfolio for sustainable revenue
and competitive return on capital,
makes our business attractive to
future investors and financiers, and
enables DOF to invest in assets
and competence for the future.
DOF Group provides the technical
capability, experience, and assets
globally to deliver dedicated subsea
and marine services for our clients
in an evolving subsea and offshore
energy sector.
Our 'One DOF' initiative allows us
to be an ever-flexible, fast adapting
organisation. This ensures we are
well-positioned for new and existing
markets and leading new segments
creating optimal value for our
customers and other stakeholders.
Markets Organisation
People Planet Prosperity Principles
Value
Drivers
People
Occupational health and safety
Environmental performance
Financial performance
Marine & Subsea service delivery
Governance
Outputs
Enabling a strong health and
safety culture and systems in
values-based environment
Fostering a diverse & inclusive
workforce
Motivating engaged & enabled
colleagues
Successfully developing tech-
nology & digital solutions for
greater operational efficiency
Managing the environmental
and societal impacts of our
business
Providing predictable revenue
streams by securing contract
backlog
Maximising profit through cost
control
Securing sustainable capital
structure
Providing accessible services
to support a changing market
Building strong relationships
with our clients
Risk & opportunity management
Stakeholder engagement/materi-
ality
Responsible business
Value
Created
Ensuring strong health and
safety systems and culture is
our highest priority. It’s a right
that benefits all employees,
their families, our whole supply
chain, and investors. It is a
requirement for business.
Companies are their People.
Working for a sustainable
company, offering fair work,
with career prospects creates
an engaged workforce which
benefits customers, investors,
and suppliers. Training and
careers programs benefit local
communities creating career
paths and long-term benefits.
We care about the environment
in which we live. Improved
performance benefits all stake-
holders. There are also efficiency
and innovation gains to be
realised by responding to
these critical issues.
Sustainable returns make DOF’s
business attractive to future
investors enabling DOF to
invest in people and relevant
assets for the future.
Generating wealth and opportunity
by engaging local businesses
and suppliers and ensuring
integrity along the supply chain
by auditing for human rights.
Subsea and Marine services
are the core value generating
work of our business. Building
strong relationships and ensuring
we have the right assets and
capability to support our cus-
tomers in the evolving subsea
and offshore energy sector is
key to our future and therefore
benefits all stakeholders.
Upholding good governance
and standards ensures decent
work, generates wealth for
employees, local communities,
and along our supply chain,
as well as wider society by
generating taxes.
To produce lasting value
for stakeholders, and a long-term
competitive return on the invest-
ment the BOD and Corporate
Management employ ERM to
evaluate risk and opportunity
and potential to realise vision
and strategic direction.
Enabling integrity along the
supply chain with supplier
social screening.
Using our values and our strategic ambition we’ve brought together our Group‘s environmental,
social and governance (ESG) commitments across four value-based, measurable categories.
People, Planet, Prosperity, and Principles affirm our commitment to the United Nations SDGs and
give all our stakeholders a way of measuring and understanding our purpose and achievements.
Finance
Shaping DOF for the future
14
dof integrated annual report 2021
PeoplePeople
A SAFE, INCLUSIVE,
INSPIRING WORKPLACE:
Diversity, equality, & inclusion ..17
Skills for the future ....................18
Human rights ..............................18
Employee health & wellbeing ....19
ProsperityProsperity
GOOD CORPORATE CITIZENS,
EFFICIENT OPERATIONS,
POSITIVE IMPACTS
Innovation & technology ............ 25
Wealth generation ......................25
Circular economy ........................26
New market segments ...............26
PlanetPlanet
TRANSPARENCY,
ENVIRONMENTAL STEWARDSHIP, &
SUSTAINABLE SOLUTIONS TO
REDUCE OUR IMPACT
CDP & GRI reporting ................... 21
UN SDGs ....................................... 21
Emission & energy reduction ...... 22
Green Shipping ............................. 22
Environmental stewardship ......... 23
DOF is a values-driven company operating in the offshore
energy sector, where energy production is transitioning to
cleaner solutions and renewables. To be a sustainable,
investible company our business platform must reflect
stakeholders’ expectations, future market demand for
the skills and potential of our people and our assets.
GROUP
Environmental, Social, and Governance commitments
THE
PrinciplesPrinciples
SAFE, LEGAL, ETHICAL
DECISIONMAKING,
EVERYWHERE WE DO BUSINESS
Governing purpose ....................... 29
Our Board ...................................... 29
Accountability & transparency .... 29
Ethical behaviour .......................... 30
15
dof integrated annual report 2021
Our People
A SAFE, INCLUSIVE,
INSPIRING WORKPLACE
People
Companies are their People.
Working for a sustainable company,
offering fair work, with career prospects
creates an engaged, skilled workforce
which, in turn, benefits customers,
investors, and suppliers.
Ensuring integrity along the supply
chain by auditing for human rights
enables wealth generation and
creates opportunity by engaging
local business and suppliers.
The key to our success has always been our people. The challenges ahead are different
in nature; however, the importance of our people-factor never changes.
Technology, connectivity, and remote working revolutionised the way we work. These
newly established routines facilitate collaboration, flexibility, and efficiency across
the organisation. Promoting a culture of diversity, equality, and continuous develop-
ment, in a safe, inclusive workplace is central to employee health and wellbeing,
which benefits all stakeholders.
“It is of great importance that we
inspire women to lead in DOF”
- Marianne Møgster
0
GDPR breaches
recorded in 2021
3
Confirmed
harassment cases
recorded in 2021
3.73
%
Absence
absence due to sickness in 2021
3,820
Headcount
headcount per 31.12.2021
Enabling a strong health and safety culture and systems in values-based
environment
Fostering a diverse and inclusive workforce
Motivating engaged and enabled colleagues
16
Captain Débora Paula Ferreira
Improving diversity, equality, and inclusion
in line with UN SDG 5, Gender Equality
Our commitment: DOF will increase the number of female leaders. The global goal is to reach
25% female representation in the seasoned professionals and management group by 2025.
The connection between gender diversity and corporate performance is well documented. A more
diverse corporate culture can lead to more innovation, creativity, and critical thinking, as well as higher
productivity. We use recognised programmes and pathways to deliver this goal.
FiftyFifty programme: Seven managers have been
enrolled in the international initiative to learn
and share best practices for women leaders. We
plan to expand with similar leadership training
in our regions in 2022.
Career pathways for female offshore leaders:
DOF is proud of a strong track record creating
career pathways and promoting diversity and
gender equality in our oshore leadership. Today
we have six female engineers, and 50 female
ocers including three female captains.
You can’t be what you can’t see: Celebrating
International Women's Day 2021. DOF’s master
class 'Women's leadership and how to develop it'
webinar for women employees in the Brazil region
was attended by 61 onshore and oshore women.
Captain Erica Mesquita
Captain Tereza Santos
16 ambassadors from company-wide disciplines and locations participated in the 2021 professional development programme.
Find more info at:
www.dof.com/code
Read more at:
page 30
17
dof integrated annual report 2021
section header - no caps
Skills for the future: a culture of continuous learning
in line with UN SDG 4, Quality Education
Our strategy: To align the people in DOF ASA and the Group, maintaining the diversified strengths
and our unique position with both marine and offshore subsea services, our global footprint and
established local networks.
The Group’s commitment to professional development and a leadership development agenda are integral
to achieving our strategic ambition and shaping DOF for the future. In a positive move forward, programmes
postponed in 2020 due to COVID-19 pandemic were staged in 2021 with more planned for 2022.
Where
we were unable to travel freely, we engaged participants and delivered programmes virtually.
DOF Ambassadors Programme:
16 ambassadors
from company-wide disciplines and locations
participated in this professional development
programme for our next generation leaders.
The DOF Workbook leadership training 2022:
Global onshore and oshore leaders will participate
in leadership training to support leaders in their
role, and maintain high standards of excellence.
Officer’s Conference: Leaders from the vessels
gathered at the annual ocer’s conference over
two days to share key organisational initiatives
and learnings from the pandemic.
CEO’s global virtual Town hall meetings:
Using Microsoft Teams, meetings were split into
two sessions, hosted twice on the same day, to
cover all regions and as many people as possible.
Annual Leaders Seminar Brazil: 450 onshore
and oshore employees participated in this virtual
event, to interpret and discuss the three pillars of
the Shaping DOF for the future strategy.
DOF respects human rights
and believes them central to all UN SDGs
Our commitment: We avoid causing or contributing to adverse human rights impacts through
our activities and we seek to prevent adverse human rights that are directly linked to activities
through our business relationships.
Amnesty International again ranked DOF in the top-five global companies based in the Nordics with the
best score related to human rights and responsible employment practices. Our approach is well established.
Policies and standards: International Law
and Labour Organisation conventions ensure our
operations do not breach international standards,
conventions, and UN guidelines.
Ethical business along our supply-chain:
Vendor evaluation is mandatory for all suppliers. It
is designed to ensure UN Global Compact principles
for Human Rights, Labour, Environment and Anti-
Corruption are upheld along our supply chain.
The Code of Business Conduct: supports our
organisation and partners to comply with UN’s
Guiding Principles on Human Rights and Business.
Freedom from slavery: DOF operates in
compliance with all applicable laws prohibiting
modern slavery or any use of forced or child labour
in our operations or supply chains.
Employees’ rights: DOF recognises and respects
employees rights to freely associate, organise
and collectively bargain, and complies with
requirements in local laws.
Ethics helpline: a strong ‘feedback loop’ is
essential. DOF introduced the ‘ethics helpline’ in
2018 giving stakeholders a 24/7 accessible tool to
report serious concerns with anonymity.
Top-5
scoring in the Nordics
Amnesty International’s
acknowledgment in June
2020 placed DOF in the
top-5 global companies based
in the Nordics with the best
score related to human rights
and responsible employers.
Find more information at:
https://amnesty.no/
Find more info at:
www.dof.com/code
Read more at:
page 30
18
dof integrated annual report 2021
Operational health & safety
Ensuring strong
health and safety
systems and culture
is our highest priority.
It is a human right
that benefits all
employees, their
families, our whole
supply chain, and
investors. It is also
a core requirement
for business.
Employee health & wellbeing
in line with UN SDG 3, Good Health and Wellbeing
Our commitment: DOF strives to be the leader in the fields of health, safety, environment, and quality (HSEQ) and
systematically promotes these areas in the execution of all activities and operations.
Health and safety in a global pandemic we face similar operating conditions in 2022. Our proven ability to adapt and
maintain operations safely is core to our value creation for all stakeholders and future high-standard service delivery.
Safe the RITE way: Structured systems and a strong
safety culture underpinned our response to the COVID-19
pandemic. Strict protocols to protect our employees and
their local communities are still deployed to maintain
safe operations.
A Global Employee Assistance Programme (EAP):
Mental health and wellbeing concerns within our industry
increased during the pandemic. DOF will launch a uniform
EAP assistance solution to support all employees in 2022.
Flexible work:
Employees are in favour of a hybrid workplace.
The global Working from Home survey gave us crucial insights
into important aspects of employees work and personal lives.
Employees reported improved work-life-balance, reclaimed
time, greater flexibility, with improved physical and mental
health levels, and feelings of overall wellbeing.
The DOF Workbook 2
nd
edition: Updated with the Group’s
rolling strategy, new vision, and enterprise risk management,
this is a core training resource for all employees.
6
Lost time injuries
Lost Time Injuries (LTIs)
in 2021
18
Incidents
recordable incidents
in 2021
0.68
/million hrs
Lost Time Incident frequency
31,250
Safety observations
raised in 2021
2.05
/million hrs
recordable incident frequency
6,079
Obervations
positive safety observations
reported by workforce
19
We care about the environment in
which we live and work. Improved
performance in this area benefits
all stakeholders. There are also
innovation, efficiency gains and
new opportunities to be realised by
responding to these critical issues.
Our Planet
TRANSPARENCY,
ENVIRONMENTAL STEWARDSHIP,
& SUSTAINABLE SOLUTIONS TO REDUCE OUR IMPACT
Climate action is important to all our stakeholders and has far wider implications
as a shared responsibility in the world. As a company harnessing our values, it is
fundamental that we act to protect the environment. It is also integral to our
strategy as DOF's customers transition energy production to cleaner solutions and
increase renewables in the energy mix.
-6.6%
CO
emissions
total emissions in 2021
compared to 2020
B
CDP score
for 2021
0
Unrecovered
no spills unrecovered over 50 litres
Environmental performance
20
Meeting our stakeholders’ expectations
in line with UN SDG 13, Climate Action
Our strategy: Maintain our position within top five for ESG sustainability in our industry.
DOF is a leader in Environmental, Social, and Governance (ESG) reporting. Transparent, industry
comparable reporting is an important tool in driving change. The Governance Group (TGG) conducted
an independent review of DOF’s sustainability reporting activity in 2020. DOF received a stand-out
score of 3.09 (A-) within the Industrial Transport Sector group using the ESG 100 method, scoring
maximum points in both GRI reporting and UN SDG integration and above the sector average of 2.33.
The Group has established programmes to reduce its climate impact, including the major R&D project
Intelligent Eciency, Ship Energy Eciency Plans (SEEMP), installation of shore power capability, and
of battery packs on vessels. The performance of these programmes, and other ESG metrics, are publicly
reported in a structured way so they are transparent, measurable, and understandable to stakeholders.
Carbon Disclosure Project (CDP) for transparent
environmental reporting: DOF has reported to
the CDP framework since 2010 and recorded B in
2021. CDP constantly evolves the disclosure and
scoring system in response to market needs and
the rising urgency of the environmental challenges.
Today, CDP’s climate change questionnaire contains
over 25 TCFD-aligned questions in the Governance,
Risks and Opportunities, Strategy, Targets and
Emissions modules of CDP’s questionnaire and
include specific methodologies for high impact sectors.
Global Reporting Initiate standards (GRI):
DOF has reported to GRI since 2014 ensuring vital
drivers of sustainable operations are factored into
decision making and to provide stakeholders with
a view of all aspects of organisational performance.
UN Sustainable Development Goals (SDGs):
Working principally with oshore vessels and subsea
engineering, the Group aligns with the SGDs where
we have the greatest impact and can make an
important contribution as part of our operations.
2021 B
11-year participation
Top 30% for
Environmental Stewardship
Find more information at:
www.cdp.net
Sustainable Development
17 GOALS
DOF strives to positively
impact the world by aligning
with relevant UN Sustainable
Development Goals (SDGs)
Since
2014
DOF has used the
Global Reporting Initiative
(GRI) Standards:
Recognised industry leader
Independent assurance
report Sustainability
& Greenhouse Gasses
(GHG) verification
A-
ESG 100 score
DOF named in Financial Times
Europe's Climate Leaders 2021
21
Emissions and energy reduction
The IMO's goal is to cut GHG emissions by 50 % by 2050, while pursing eorts towards
phasing it out. DOF is on target to meet the IMO goal and is committed to, compared to 2008
levels, a 40 % reduction in CO
2
emissions by 2030. We are adapting to a zero-emission mindset,
and work in collaboration with vendors to achieve a responsible supply chain.
Continuous reduction in fleet-wide energy
use and GHG emissions is a significant
focus for the Group. Innovation, technology,
and digitalisation are the drivers for resilience
in DOF’s product range. Find detail of specific
actions in Prosperity.
Developing Science-Based Targets:
Establishing Science Based Targets (SBTs) for
GHG emissions reduction provides a clear
pathway to becoming a net-zero company. In
2022, we plan to work with the TERRAVERA
Foundation to build a model that is suitable for
scope 1, 2, and 3 emissions and set SBTs. In
addition, DOF has formed a strategic alliance
with Kongsberg Maritime Group to align eorts
in reaching SBTs on an executive level, for
scope 1, 2, and 3 emissions.
Circular Economy Approach: Inspired by the
MacArthur Foundation’s Circular Framework,
understanding, and optimising the data behind
DOF’s assets over its life-cycle is the most
eective method of achieving a circular economy.
Each phase of the life-cycle, newbuild; expected
operational life; extended life of asset; presents
unique opportunities to apply circular economy
principles. More detail is given in Prosperity.
‘Green Shipping Programme’: As a member
of the Norwegian partnership led by DNV,
and including a wide range of maritime
sector companies, DOF, VARD, DNV, and
other stakeholders studied the opportunities
in converting oshore vessels to new markets,
such as Oshore Wind. The study concluded the
case for conversion presented economically and
environmental benefits compared to newbuild
alternatives. Basing calculations for the newbuild
on current technologies, the conversion study
found emissions were reduced by 30%, and a
conversion including a retrofit/battery package
reduced emissions by 15%. Adding emissions
from the production of the newbuild, total
emissions for the converted vessel would be
lower than the newbuild for around 10 years.
Activities and programs to reduce climate impact
Reduced flare in upper part of the bow for cutting through
large waves and minimising added resistance
Optimised intermediate bow section crushing small waves.
Flared notch above bulb to suppress small/ medium waves.
Optimised under water lines including bulb for calm water.
Bulb designed to reduce running resistance of the vessel,
and to resist pitching in waves.
Improved fuel efficiency through design
Vessel bow shape is optimised for eco-drive in all weather
conditions and designed to minimise free-running fuel
consumption in three sea state regimes.
Design Power innovations
Shore power connectionRoute optimisaton
DOF has the expertise in-house to
chart routes in order to minimise fuel
consumption and reduce ship motions
for passenger comfort.
Model tests are undertaken to optimise
longitudinal trim monitoring for minimum
resistance and an ongoing program
of correlation of vessel performance
against met/ocean conditions are part
of our fuel efficiency initiative.
LNG
L
NG bunkering is already a recommended practice in 15 countries
worldwide, vessels like the Skandi Gamma dual powered LNG MPSV
provide major environmental, HSE and commercial advantages.
Project Savings Reduced consumption with LNG ~ 30%. with no
reduction in cargo capacity.
Environment
Optimised hull lines. LNG driven – low emissions. Reduced emissions
NOx ~ 85%. Reduced CO2 emissions ~ 25-30%
HSE Crew comfort. Reduced Noise levels due to configuration.
Battery storage
Energy storage through batteries leads to reduction
of carbon footprint and reduced maintenance cost.
Shore power connection delivers cost and
emission savings. DOF made history with
Skandi Vega, the first vessel to connect to
the harbour facility via shore power.
Carbon Disclosure Plan The Shore
Connection plant allowed Skandi Vega to
achieve an Environmental Ship Index score
of over 50 i.e., estimated reduced energy
cost (Diesel vs. Shore power supply) and a
significant saving of CO2 p/a.
Hull resistance
22
dof integrated annual report 2021
A DOF employees photo of a whale shark
Environmental stewardship
in line with UN SDG 14 Life Below Water
Our commitment: We avoid causing or contributing to adverse environmental impacts through
our activities and along our supply chain.
Maintaining best practice management, DOF is undertaking a review of governing documents
connected to biodiversity and marine pollution guided by IMCA recommended code of practice
on environmental sustainability. Programmes for continuous improvement are focused in risk
evaluation and a reduction in the parameters for investigation and reporting biofouling or spills.
An education programme is planned in 2022
to increase understanding in the area of biofouling,
marine plastics, and hydrocarbon management.
Waste Management: a plan has been
implemented for DOF to phase out single-use
plastics generated by our employees through our
operations by 2022.
As a component of Circular Economy
development,
waste management will become
an audit criterion in Global HSEQ Audits.
Environmental Stewardship: Caring for environ-
ment in which we live and work, DOF will
partner with an NGO to contribute beyond our
operational footprint to support industry experts.
Biodiversity and Marine Pollution: DOF has
strict procedures and routines to manage impacts
associated with the introduction of invasive marine
species through vessel operations and unplanned
discharge of hazardous materials through loss of
secondary containment and publicly reports our
performance in this area.
Our Prosperity
GOOD CORPORATE CITIZENS,
EFFICIENT OPERATIONS,
POSITIVE IMPACTS
We are successfully developing
technology and digital solutions for
greater operational efficiency and
managing the environmental and
societal impacts of our business.
Decent employment, training, and
career programmes benefit local
communities creating prosperity
and wider long-term benefits.
We operate in an evolving market. New and different demands from our stakeholders
and the changes in the energy market are key drivers for our future organisation.
DOF has over 40 years’ operational experience in complex markets and a history
of adapting to deliver competitive services, globally. We have an ambitious
programme to develop new technology and digital solutions for energy
management, GHG emissions reduction, efficiency, and to grow new market
segments.
78
%
Utilisation
of the group fleet in 2021
80
%
Utilisation
of Subsea project fleet in 2021
14.4
BILLION
group backlog per 31.12.2021
Financial performance
24
Investor surveys
suggest that
a structured,
methodical
evaluation of
non-financial
disclosures is
the new norm
in investment
decision making.
Find more info at:
www.dof.com/code
Read more at:
Page 30
Stakeholder and wider wealth generation
in line with UN SDG 8, Decent Work & Economic Growth
Our Strategy: To build a debt structure, business model, and portfolio that provides for
sustainable revenue and competitive return on capital, making DOF’s business attractive to future
investors and financiers, and enabling DOF to invest in competence and assets for the future.
The Group continues to implement new technology to create sustainable value and respond to
the ongoing shift within the energy markets. Additionally, DOF creates wider stakeholder value
and prosperity for individuals, their families, governments, and society by creating jobs, assisting in
enterprise development, and technology transfer to local communities. In addition to Decent Work,
our wider societal benefits are based on training, career pathways for local communities, engaging
local businesses, and supporting early-life education, cultural and sporting programs.
The immediate and short-term focus on debt
structure: co-exists with our focus on building
a robust and sustainable business model for the
longer term. We continued optimising organisational
structure to support a highly agile organisation,
this will be realised in three stages: focusing on
review and reporting structures; using technology
and centralisation for eciency gains; and by
focusing on competency, succession planning,
and work culture to ensure a competitive level of
access to market opportunities. Aligning people in
DOF ASA and DOF Subsea also continues, always
maintaining the diversified strengths and our unique
position with both marine and oshore subsea
services, global footprint, and strong local networks.
These are key to shaping DOF for the future.
Decent Work: DOF employs 3,280 and in 2021
created 694 full-time equivalent positions.
Training and career pathways in our local
communities:
We train and maintain a dedicated
core crew on all our vessels. This creates value
by retaining operational and vessel knowledge
between charter or project crew changes, and leads
to a higher level of safety, eciency, and quality
of services, benefiting all stakeholders.
Global maritime cadetship programme: This
long running program gives cadets a structured
path to gain qualifications in maritime careers
and a long-term livelihood. Seafarers are trained
through the Norwegian Training Centre – Manila,
Philippines (NTC) and the AEPM in Brazil, to the
highest standard of safety and quality and promote
excellence in maritime operations worldwide.
Developing highly qualified officers to operate
our fleet, training and qualifications support career
progression from the cadet programme onwards.
Courses oered completely cover vessel operations.
Promoting education, culture, and sports:
DOF
supports specialist organisations’ structured
programmes, primarily in Brazil and Philippines,
to give underprivileged children a chance for a
better future. DOF Sponsors the Renascer foster
institute (Brazil): An organisation which cares for
children from one to five years old, presenting
them new life perspectives through sports, art,
and music, providing them with a home, food, and
shelter. The community of Comatin (Phillipines):
DOF and our partner in the Philippines, OSM,
rebuilt the elementary school after a typhoon in
2013 and have maintained support since.
25
Innovating technologies & core services
in line with UN SDG 9, Industry, Innovation and Infrastructure
Our Strategy: To provide the technical capability, experience, and assets globally to deliver dedicated subsea and marine
services for our clients in an evolving subsea and offshore energy sector.
Our strategic ambition is anchored in the diversified strengths and expertise from marine and subsea organisation,
matching existing assets and the unique skills, and potential of our people to future market demand. Cross company, multi-
disciplinary, technical steering committees manage major projects to progress our strategic priorities in innovation, technology,
digitalisation, and new market segments.
Emissions reduction and energy management
Yxney´s Maress cloud-based software was
deployed on the whole fleet in Q1 2021. Maress
analytics allow decision makers onshore and on
the bridge to make more informed decisions on
how to reduce emissions. In addition to the direct
emissions savings, the system also underpins the
portfolio of DOF´s other GHG-reducing initiatives.
Intelligent Efficiency: The research project
partnership with Kongsberg Maritime, SINTEF
Ocean and NORCE, the product has been under
development concept, define and create phases
since 2018. The next exciting phase plans to extend
the solution to three or four vessels, pending final
project evidence of energy and emissions savings.
Circular Economy (CE) approach: A new policy
will be adopted in 2022, supported by a 3-year
programme applying The MacArthur Foundation’s
Circular Framework across our Value Chain.
A Life Cycle Management model will maximise
the use-cycles of assets and reduce consumption
and GHG emissions. The most eective method
of implementing CE solutions is understanding
and optimising the data behind DOF’s vessels
over a 3-phase life-cycle. Each phase presents
unique CE opportunities. With no newbuilds
underway, our focus is expected operational life
and extended life of assets through maintenance
protocols, reducing material inputs, and system
enhancements. Modernisation opportunities are
expected to extend life of assets before recycling.
New zero or low-emission fuels: feasibility
studies investigating alternatives to traditional
fuels and battery combinations are underway.
Other efficiencies and emissions reduction:
Delivered by increasing shore power capability
and installation of large batteries onboard vessels.
Core services
Remote operations uses technology to allow
oshore personnel to perform their duties without
being physically present on board a vessel. “Survey
in The Cloud – Remote Operations” developed
over 2020/2021 will be implemented on four
vessels in 2022. Progress testing is underway for
Remote Digital Class services with some surveys
undertaken onshore with support from crew.
Subsea robotics: A project investigating future
ROV operations and subsea vehicles with robotic
features, such as the classic work class ROV, AUV,
and newer types of subsea vehicles designed for
data acquisition and intervention.
Business continuity is critical. Increased focus
on cyber security to avoid operational disruption,
financial risks, and reduce threats to business
continuity and sustainability is ongoing.
Circular Economy (CE) approach
26
dof integrated annual report 2021
Marine and Subsea service delivery
Subsea and Marine services are the core
value-generating work of our business. Building
strong relationships and ensuring we have the
right assets and capability to support our
customers in the evolving subsea and offshore
energy sector, is key to our future and therefore
benefits all stakeholders.
The Floating Offshore Wind segment creates jobs,
revitalises ports, and domestic manufacturing
supply chains.
Renewables: new market segments
Floating Offshore Wind (FOW): Considered
the future of oshore wind farm development
as the proven technology opens vast areas
of the ocean to clean energy production.
FOW developments are not limited by
water depth, can be placed in stronger,
more consistent winds and advances in
turbine design mean more eective and
cost ecient energy production.
DOF is growing in this clean energy segment,
our operational experience, competence, and
assets are ideal for FOW field development.
DOF Subsea and JV partner are currently
engaged in delivering the world’s largest
floating oshore wind farm, Hywind Tampen,
in Norway. This project is expected to
reduce the CO
2
footprint in future projects.
4.2
Subsea client
satisfaction
in 2021
(out of max score of 5)
4.2
Marine client
satisfaction
in 2021
(out of max score of 5)
99.0
%
Vessel uptime
available operative time in 2021
99.3
%
ROV uptime
available operative time in 2021
27
dof integrated annual report 2021
We have the pillars in place to uphold a culture of legal and regulatory
compliance: the foundation for honest, ethical business. We believe strong
institutions operate to universal principles and give stakeholders the
resources to uphold standards.
Our Principles
SAFE, LEGAL,
ETHICAL DECISIONMAKING,
EVERYWHERE WE DO BUSINESS
Upholding good governance and standards
ensures decent work, generates wealth for
employees, local communities, and along our
supply chain, as well as for the wider society
by generating taxes.
The Board and Corporate Management team
evaluate risk and opportunity and potential to
realise our vision and strategic direction for a
long-term competitive return-on-investment
and to produce lasting value for stakeholders.
We ensure integrity along the supply chain
with supplier social screening.
Principles
0
Fines
or non-monetary sanctions
due to non-compliance
1,589
Audits & Inspections
completed in 2021
1,036
NCRs
raised in 2021
0
Corruption
cases in 2021
28
dof integrated annual report 2021
section header - no caps
Governance
in line with UN SDG 16, Peace, Justice and Strong Institutions
Our commitment:
Strong governance is a core tenet for our business. Our corporate
governance policy outlines the measures which are continuously implemented to secure ecient
management and control of the activities of the Company.
Governance principles: Good corporate
governance and trustworthiness are a prerequisite
for value creation, and for access to capital.
Strong and sustainable corporate governance
is the foundation of the Group's integrity and
assurance through healthy business practices,
reliable financial reporting, and an environment
of compliance with legislation and regulations
across the Group. For further information please
visit DOF ASA’s website www.dof.com.
Our Board:
Meet the Board Directors responsible
for all governance, strategy, and sustainable
development within the DOF Group on page 32.
Double materiality stakeholder engagement:
Stakeholder engagement is a continuous and on-
going process as we factor stakeholder expectations
and broader challenges into strategy and decision
making. DOF established a materiality process in
2015. Increasing the focus on risk and opportunity,
the Group evolved to a more contemporary double-
materiality approach in 2021. See page 182.
Integrating risk and opportunity into business
process:
The Group’s risk management and internal
controls are based on the principles in the Norwegian
Code of Practise for Corporate Governance. The
Board and Corporate Management Team evaluate
risk and opportunity and potential to realise vision
and strategic direction for long-term competitive
return on the investment and to produce lasting
value for stakeholders. See page 184.
New regulatory requirements in ESG reporting:
The Norwegian Transparency Act requires DOF
to work systematically with human rights in the
value chain, and report accordingly. The new
EU Taxonomy classification system establishes
a list of environmentally sustainable economic
activities. Companies will need to report the
proportion of their revenue, capex and opex
classified as eligible according to this Taxonomy.
The ERM process
(continued)
Risk associated with DOF’s
strategic direction; framing
strategy; framing value
creation; 3-yr improvement
program.
Strategic Risk
Regional and Business
Unit Management Teams
Perform audits against global
frameworks; communicate
concerns raised by audit
committees or stakeholders
relevant to business unit
actions.
Review material issues,
including: problematic
cultural and operational
risk and opportunities with
specific focus on delays,
cost overruns, commercial
disputes, margins, and other
concerns.
Cascading lessons learned
across DOF regions and
business units.
Oversee activities of the
external and internal audit
functions, receive input on
the adequacy of financial
reporting and control
mechanisms on material
risk issues that could
impact company integrity.
Risks associated with
operations, planning and
executing marine and
subsea activities.
Operational Risk
Risks associated with
corporate culture; adapting
global business model to
regional business environ-
ment and customs; local
legal issues; regional
management.
Business Risk
Board of Directors /
Corporate Management
BOD and Corporate levels
of the management:
To produce lasting value
for stakeholders, and a
long-term competitive
return on the investment
the BOD and Corporate
Management regularly
evaluate long-term risk and
opportunity and potential
impact on strategic decisions
taken today.
The Corporate Management team as the governing body for assurance of the ERM model
by overseeing activities and efficacy ERM Framework – reporting to the BOD
Engaging key stakeholders; evaluating value creation; setting risk appetite; consider high-level
organisational risk from other areas of the business; strategic risk management and governance
mechanisms to respond to mega-trends and long-term macro level shifts in the external
market; cascading governance principles into cultural and process risk management areas.
Execution Teams
Annual Leaders Seminar
Find more info at:
www.dof.com/
CorporateGovernance
Read more at:
page 46
Integrating risk and opportunity into business process
29
dof integrated annual report 2021
section header - no caps
Ethical behaviour
DOF has measures in place to assist with ethical behaviour
throughout the Group.
Our Code of Business Conduct (COBC) is aligned to the
UN Global Compact and is our blueprint for conducting
business fairly and responsibly. It was relaunched in 2018
and structured around our five values: Respect, Integrity,
Teamwork, Excellence, and above all we are SAFE. The
COBC is supported by extensive awareness training for
complex issues like Anti-Bribery and Corruption.
Anti-corruption:
DOF requires employees to train annually
in key ESG topics like anti-corruption, SCM, environment,
and Human Rights. During 2022, DOF will make IMCA’s
anti-corruption e-learn available for the organisation, and
it will be mandatory for selected employees in the Group.
The DOF Watertight Integrity Test: DOF’s Code of
Business Conduct aims to help everyone understand and meet
the
Group’s expectations for professional standards and how
to comply with all legal and regulatory obligations, worldwide.
The “DOF Watertight Integrity Test” is a simple tool to support
decision making in any situation. Read more in our Code of
Business Conduct: www.dof.com/TheCode.
Ethics helpline: A strong ‘feedback loop’ is essential. The
Group introduced the ‘DOF ethics helpline’ in 2018 to give
stakeholders anonymity and a 24/7 accessible tool to report
serious concerns.
Fully audited
ISO certification for a business platform in
line with future market demand. In Q4 2021, DOF received
renewed ISO certificates (ISO 9001:2015, ISO 14001:2015,
and ISO 45001:2018). This was a milestone for the Group
aligning systems, while supporting strategic development.
30
section header - no caps
Code of Business Conduct
Aligned to the UN's Global Compact
Find more information at:
www.dof.com/code
Find more information at:
www.dof.com/safe
31
dof integrated annual report 2021
Board of Directors
of DOF ASA
Born in 1962. Hans Olav Lindal was appointed to
the Board in 2019. He is a Norwegian qualified
corporate lawyer, admitted to the Supreme Court
of Norway, and partner of the law firm Advokatfirmaet
Thommessen AS since 1993. He was President of the
Norwegian Shipowners' Association and board member
of International Chamber of Shipping (ICS) until 2018,
and chairs and serves on the board of directors of
several companies in the maritime industry, including
Viken Shipping, Wallem, Gearbulk, and G2Ocean. Mr.
Lindal is a Norwegian citizen and resides in Norway.
Hans Olav
Lindal
Chairman
Born in 1963. Helge Singelstad was appointed to the
Board in 2008. He has extensive experience from various
types of business such as oil and gas, ship equipment
and the seafood sector. Mr. Singelstad chairs and serves
on numerous boards of directors, including being the
chairman of the Board of Directors in Austevoll Seafood
ASA, Lerøy Seafood Group ASA, and Pelagia Holding AS,
and is CEO in Laco AS. He holds a degree in computer
engineering from Bergen Engineering College, a degree
in Business Administration from the Norwegian School
of Economics and Administration (NHH), and he has
a first year degree from the law school at the University
of Bergen (UiB). Mr. Singelstad is a Norwegian citizen
and resides in Norway.
Helge
Singelstad
Deputy
Chairman
32
dof integrated annual report 2021
Born in 1964. Kathryn Moore Baker was appointed to the
Board in 2016. She is chairwoman of Genetic Analysis AS,
Pensionera AB and Terra Mater Renewable Investments
AB. Ms. Baker is also a board member of Akastor ASA,
MPC Energy Solutions NV, Gaming Innovation Group
PLC and Labrida AS. Ms. Baker was previously a
member of the Executive Board of the Central Bank of
Norway, a partner at the Norwegian private equity firm
Reiten& Co and has held positions with Morgan Stanley
and McKinsey & Co. She holds a bachelor’s degree in
economics from Wellesley College and an MBA from the
Tuck school of Business at Dartmouth. Ms. Baker is a
United States citizen and resides in Norway.
Kathryn
Moore
Baker
Director
Marianne
Møgster
Director
Born in 1974. Marianne Møgster was appointed to
the Board in 2016. She currently serves as Senior
Vice President of Finance in DOF Subsea AS, and has
experience from several other positions in DOF, Equinor,
and Norsk Hydro. Ms. Møgster has experience as a
board member both with the DOF Group and other
listed companies such as Lerøy Seafood Group ASA and
holds the position as a board member in the Norwegian
Hull Club (NHC), Belships ASA, and The Norwegian
Shipowners’ Association. She holds a degree in Economics
and Business Administration from the Norwegian School
of Economics and Administration (NHH). Ms. Møgster
is
a Norwegian citizen and resides in Norway.
Born in 1966. Mons Svendal Aase has been a part of the
Management team since 1998. He served as CFO and
Deputy Managing Director before he became CEO of the
Company in 2005, and in 2009, he also became CEO of
DOF Subsea AS. Mr. Aase has various experience from
finance and shipbroking industries and chairs, as well
as serves, on numerous boards of directors. He holds a
MSc from the Norwegian Institute of Technology and a
Cand. Merc. from the Norwegian School of Economics
and
Business Administration (NHH). Mr. Aase is a Norwegian
citizen and resides in Norway.
Mons
Svendal
Aase
CEO
33
dof integrated annual report 2021
Report of the Board of Directors
Key notes
In summary, 2021 has continued to be a challenging year with respect to COVID-19, but
the O&G markets have improved in addition to an increased demand for vessels within the
renewable market. The DOF Group (“the Group”) achieved an average utilisation of its fleet
of 78% through the year, and higher rate levels compared to the previous year. It is however
too early to conclude on a market recovery within O&G, and how the current geopolitical
instability might impact the markets is further uncertain. During the year, the Group has
succeeded in maintaining its strong position within environmental and social sustainability.
The Group has, since 2
nd
quarter 2020, entered into rolling short-term standstill agreements
(including deferral of interest payments and instalments) with the majority of its secured
and unsecured lenders. The discussions with the creditors have continued in 2021 and the
Company regrets that a refinancing solution is not yet in place. The Group is dependent
on continued standstill agreements with its creditors until a long-term and sustainable
financial solution is agreed to maintain as going concern.
The Group’s revenue (management reporting) was NOK 7,544 million (NOK 7,582 million)
and the EBITDA was NOK 2,790 million (NOK 2,990 million). The EBIT was NOK 946
million (NOK -1,771 million) whereof the EBIT in 2020 was impacted by high impairments.
The EBIT excluding impairments was NOK 1,456 million (NOK 1, 894 million). The net
result was NOK -630 million (NOK -4,959 million) of which the negative financial result
in 2020 was highly impacted by unrealised currency loss due a strengthened USD towards
NOK and BRL. The Group’s operational cash flow was NOK 2,054 million (NOK 2,266
million) and net cash flow after finance and investment activities was NOK -86 million
(NOK 1,177 million).
Business Overview & Strategy
DOF ASA (“the Company”) is the parent company of
several subsidiaries and corporations which provide essential
oshore and subsea services to the global oshore industry,
and own and operate a fleet of PSV (platform supply
vessels), AHTS (anchor handling tug support vessels) and
Subsea (construction and subsea vessels). Included in the
subsea segment are engineering companies that provide
services within the subsea project market. The supply
vessels (AHTS and PSV) support fields in production as
well as development and exploration activities, with the
majority of the supply fleet servicing fields in production.
The Group's subsea fleet is a combination of vessels on
term contracts and vessels utilised for subsea project
activities. The subsea vessels on term contracts are serving
the IMR (Inspection, Maintenance & Repair) market and
the SURF (Subsea, Umbilicals, Risers & Flowlines) market.
The Group’s subsea projects include survey, diving services,
ROV operations, construction and IMR among others.
In 2021 the Group has been engaged in several oshore
wind projects of which the Hywind Tampen project in
the North Sea is considered the most important contract
and is currently the largest floating oshore wind project
in Europe. The majority of the subsea fleet and all the
subsea project activities are performed and owned by the
subsidiary DOF Subsea AS.
The Group’s Vision and Mission statements are the following:
Vision:
“The DOF Group is a trusted and leading partner delivering
services globally for a sustainable utilisation of oshore
energy and other subsea resources”.
34
dof integrated annual report 2021
Mission:
“The DOF Group provide the technical capability, experience
and assets globally to deliver dedicated subsea and marine
services for our clients in an evolving subsea and oshore
energy sector”.
The Group will continue its strategy to be engaged in
long-term and industrial oshore relationships and operate
within a mix of project contracts and time charter
contracts for its vessel and ROV fleet. The Group’s backlog
was by year-end 2021 NOK 14.1 billion (included backlog
joint venture of NOK 5.4 billion), which represent a high
backlog among peers. The Group further aims to deliver
consistent and improved ESG results.
The Group owns a diversified and advanced fleet of
oshore vessels with an average age of approximately 11.7
years, and a fleet of ROVs (Remote Operated Vehicles) and
AUVs (Autonomous Underwater Vehicles). As of the 31
st
of
December 2021, the Group’s fleet comprised 59 vessels (51
owned fully or partly):
• 14 platform supply vessels (PSV)
• 15 anchor handling tug supply vessels (AHTS)
• 30 subsea/construction vessels (Subsea)
• 71 ROVs and 2 AUVs
The Group has oces on five continents and during the
last decade the Group has invested in key regions such as
the Atlantic (Europe, West-Africa and the Mediterranean),
South America, North America and Asia-Pacific regions.
The head office is located at Storebø in Austevoll
municipality in Norway.
Operating segments
The challenging markets continued into 2021, however
during 2
nd
quarter the Group experienced increased demand
especially for its subsea assets and services within subsea
IMR and projects. The AHTS and PSV markets continued
to be weak, but the utilisation and earnings were slightly
higher versus 2020. The operations have been highly
impacted by COVID-19 throughout the year especially in
Brazil and resulted in high costs and o-hire for this part
of the fleet. The Group has through the year secured new
contracts with a value of NOK 5.1 billion (NOK 6.2 billion).
The utilisation of the Group’s fleet was 78% in 2021
compared to 73% in 2020. On average, the Group had
2 owned vessels in lay-up in 2021 and has further sold
and recycled in total five vessels.
The PSV & AHTS segment
By year-end the PSV fleet included 14 vessels of which one
vessel is owned via a minority share. The fleet achieved
a utilisation rate of 69% (71%) in 2021, and on average 2
vessels have been in lay-up. The main operational area for
the fleet has been in the North Sea, but parts of the fleet
have been operated in Asia-Pacific and in Latin-America on
firm contracts. The majority of the fleet is owned by the
subsidiary DOF Rederi AS. The PSV fleet represent the
oldest part of the Group’s fleet with an average age of 13.8.
The fleet has gradually declined the last few years and two
vessels have been sold in 2021. By year-end the backlog
for the PSV fleet was NOK 0.7 billion. A continuing weak
market has had a negative impact on the vessel values and
total booked impairment in 2021 was NOK 96 million (NOK
252 million) within the PSV segment. The North Sea spot
market has improved compared to 2020, and with normal
seasonal variations. The tender activity picked up towards
end of the year as operators began to secure tonnage for
the upcoming 2022 summer drilling season.
The AHTS fleet include 15 vessels of which four vessels are
on management. In 2021 the owned AHTS fleet achieved a
utilisation rate of 81% (65%). One vessel has been recycled
in 2021. The majority of the AHTS fleet operates in Brazil,
Average utilisation of the Fleet
AHTS
PSV Subsea
Subsea 30
AHTS 15
PSV 14
Total 59
Asset overview *
ROV 71
AUV 2
* All fleet totals are as of 31.12.2021. Totals include vessels wholly
and partly owned and vessels on “management”.
35
dof integrated annual report 2021
and the remainder of the fleet has operated in the Atlantic
region (mainly the North Sea) and in the Asia-Pacific region
(mainly Australia). The operation in Brazil includes nine
vessels, all built in Brazil and protected by Brazilian flag.
This fleet is owned by the subsidiary Norskan Oshore
Ltda. (Norskan), and the main client is Petrobras. The
utilisation of the fleet in Brazil was higher than previous
year but the average rate levels were lower as several long-
term contracts were renewed in 2020 at lower rates than
the initial contracts. However, the Brazil market tightened
towards end of the year and Petrobras has further tendered
for several vessels with both local and international flag.
The operations in the North Sea and in Asia-Pacific
include six vessels of which the majority are vessels on
management. The North Sea spot market has been very
volatile with short terms spikes parts of the year. By year-
end the backlog for the AHTS fleet was NOK 1.3 billion.
The value of the fleet has been stable through the year and
total impairment was NOK 68 million (NOK 730 million).
The Subsea segment
By year-end, the Group operated 30 vessels of which
three vessels were on management or hired in from
an external party. The majority of the subsea fleet (23
vessels) is owned and operated by the subsidiary DOF
Subsea AS (“DOF Subsea”).
The activities from the subsea operations include operations
from Subsea IMR project contracts and Long-term
Chartering. During 2021, DOF Subsea has operated on
average 17 vessels within the Subsea IMR projects and
had by year-end approximately 1,465 employees engaged
in this part of the business which is an increase of 25%
since 2020. The Subsea IMR projects represented 51%
(43%) of the Group’s total revenue in 2021 (management
reporting). The Subsea IMR project activities have been
performed in four regions; the Atlantic region, the Asia-
Pacific region, the North America region, and the South
America region. The overall utilisation of the subsea
project fleet during 2021 was 80% (70%). The Long-term
Chartering comprises eight vessels of which seven vessels
are PLSVs (pipe laying vessels) and six PLSVs are owned
via the joint venture DOFCON, (50/50 owned by DOF
Subsea and TechnipFMC). By year-end total backlog for
the subsea vessels was NOK 12.1 billion including the
Group’s share of the backlog in DOFCON at a value of
NOK 5.4 billion. Two vessels have been sold in 2021 of
which one was delivered in 2022.
The Atlantic region includes operations in the North
Sea, Mediterranean and West Africa where the activities
in 2021 have mainly been within the IMR segment on
existing infrastructure, FPSO installations, decommissioning
and mooring projects for clients mainly within O&G
markets, but also within renewables markets (oshore
wind). The region has performed better than last year
due to an increased demand from clients. Towards end
of the year the region experienced higher activity related
to the Hywind Tampen, which include installation of 11
floating wind turbines with the capacity of 88MW, and
where DOF Subsea is responsible for towing, hook-up and
installation of the units.
In the Asia-Pacific region various IMR frame agreements
were the core activities, in addition to several mooring
installations and some diving projects. Two vessels have
continued to operate on firm contracts in the Philippines
and outside Australia. The remaining fleet has operated
in the project market mainly on short-term contracts and
the region has performed better than last year.
The North America region include operations in Canada
and in the US Gulf of Mexico. DOF Subsea has mainly
performed survey and positioning and various vessel services
from this region. One vessel has continued to operate on
an IMR contract in Canada and other vessels have fully
or partly been hired in to support the operations in the
US Gulf of Mexico and in Trinidad and Tobago.
The activities in South America mainly represent operations
Segment reporting (management reporting)
PSV AHTS Subsea Total
Amounts in NOK million 2021 2020 2021 2020 2021 2020 2021 2020
Operating revenue 462 524 1 117 1 224 5 964 5 834 7 544 7 582
Net gain on sale of tangible assets 31 - - 12 78 7 109 19
Operating result before depreciation and impairment - EBITDA
108 104 491 606 2 190 2 281 2 790 2 990
Depreciation 113 123 216 245 1 005 728 1 334 1 097
Impairment 96 252 68 730 346 2 682 510 3 665
Operating result - EBIT -100 -272 207 -369 839 -1 130 946 -1 771
EBITDA margin 23% 20% 44% 50% 37% 39% 37% 39%
EBIT margin -22% -52% 18% -30% 14% -19% 13% -23%
36
dof integrated annual report 2021
in Brazil and include operation of vessels and ROVs,
mainly on firm contracts. The region has through the
year operated multiple vessels on a survey and inspection
project (PIDF) for Petrobras, a diving vessel and IMR and
RSV vessels. The operations in Brazil have in parts of the
year been very challenging due to COVID-19 outbreak on
several vessels resulting in o-hire and increased costs.
The region has, however, managed to operate the fleet
close to normal and successfully protect the employees.
The PLSVs owned by the DOFCON JV have continued to
operate on firm contracts through the year and achieved a
utilisation rate of 90% (95%). Two PLSVs (Skandi Niteroi
and Skandi Vitoria) were awarded two 3-year contracts
with Petrobras with start-up in 2022. The other fleet
are committed on firm contracts with Petrobras with a
remaining duration of the contracts from 2-5 years.
Marine management
The Group's management activities are performed by
the subsidiaries DOF Management AS (DOFMAN), and
Norskan. DOFMAN’s main oce is in Norway and the
company further controls the subsidiaries’ branch oces
in UK, Singapore, Australia and Argentina. DOFMAN is
responsible for the marine management of the Group's
fleet with operations outside Brazil and in addition all
class renewals and conversion projects on the Group’s total
fleet. Norskan is responsible for marine management of the
fleet operating in Brazil. The average number of vessels
under marine management has been 60 vessels during
2021. By year-end in total approximately 2,360 persons
were employed within the marine management activities.
The market
The market outlook for 2022 has improved, mainly based
on new COVID variants are being contained and lighter
measures being enforced. However, the geopolitical picture
encourages a more conservative view to the otherwise
promising 2022 outlook. The oil price has seen levels
above USD 100/ bbl in the first 3 months, with a steep
rise in March, based on the market’s response to the
geopolitical instability and potential supply challenges.
Based on external analysis, the Company observes that
the oil prices are likely to continue to climb, and the
oil and gas macroenvironment continues to be dynamic.
Gas demand had a strong rebound in 2021, but growth
is expected to moderately increase in 2022, up by 2.2%
y-o-y. Further gas demand gains in 2022 are expected to
be strengthened by ongoing economic improvements, as well
as coal-to-gas switching. However, exceptionally high gas
prices and geopolitical instability may temper demand gains.
Total oshore capex is expected to rise 11.3% with both
oshore deep-water and oshore shelf adding 14.2%. The
five-year CAGR for capital expenditures towards 2026 is
estimated at 4% with growth in all supply segments over
the five-year period, according to Rystad Energy.
Rig market conditions are improving with utilisation
and day rates having now risen past start-20 levels. The
outlooks are optimistic with positive sentiment that the
utilisation and rate gain, seen in 2021, can be built upon
in 2022. Rig demand is projected to rise by 9% this
year to stand at 522 units at end-22 (85% utilisation).
Mid-term demand is projected to rise by a further 8% in
2023, with utilisation reaching 89% towards end of 2023.
The overall offshore vessel market is expected to increase
towards 2030. Overall offshore oil and gas is expected to
slowly increase towards 2027, before declining towards
the end of the decade. Regional growth markets that
do not adhere to the curve are South America, Middle
East and Africa that all deliver considerable growth.
Offshore wind will continue to grow from 2025 towards
2030, taking up an increasingly larger share of the total
global vessel demand. Spending on offshore installation
segments is expected to increase by an average of 32%
from 2021 to 2022. The pressure from a growing oil
and gas price with growing offshore wind capex might
increase the demand for AHTS and subsea vessels on
short, medium and long term.
Social and Environmental Sustainability
Having sustainable operations is important for the Group.
The successful balance between social, environmental
and economic elements allows the Group to develop
‘Sustainable Operations’. This ensures that the Group
remains commercially feasible, socially acceptable and
works within the capacity of the external environment.
During the entire year tremendous eorts and sacrifices
has been done to protect our crew and employees towards
COVID-19. Continuously and changing regulations and
demands from government and health authorities all over
the world, has loyally been followed by our employees
in a stoic and supporting way. Despite all of eorts and
precautions, several employees ended in CRU units for
months. However, all are now out of hospitals and supported
by DOF and health professionals to get back at work.
The Group acts responsibly and ethically everywhere it
operates, and the Group’s operations and decisions are
guided by the values – Respect, Integrity, Teamwork,
Excellence – RITE – and above all we are Safe. This
ensures honest, fair and equitable operations, protecting
and building the Group’s reputation.
‘Safe the RITE way’ is the guiding philosophy by which
the Group safeguards its people, external environment,
vessels and subsea assets. ‘Safe the RITE way’ is the
umbrella for the safety program which brings together
core values and connects them to strategic areas for
sustainable operations.
The Group is guided by the articles of association, the
Corporate Governance and Group policies, combined
with the Group’s Code of Business Conduct, ensuring
that the Group’s operations consider the interests of
all stakeholders.
37
dof integrated annual report 2021
The Group promotes transparency and standard disclosure
of information relating to key sustainability aspects. As
part of this, the Group reports according to CDP and the
Global Reporting Initiative. Detailed reporting on these
matters is included in the sustainability section in the
Annual Report.
As DOF’s sustainability eorts evolve, expand, and become
more comprehensive, so too do our stakeholders and their
material interest in our activities. It is therefore of the
utmost importance that DOF has eective mechanisms
and reporting structures to communicate financial and
non-financial information to these interested parties.
This year, DOF has adopted the World Economic Forum’s
Stakeholder Capitalism Metrics of; People, Planet, Prosperity
and Principles.
Not only does this framework compliment DOF’s vision of
creating broad stakeholder value, but it promotes a core
set of non-financial metrics and disclosures for investors
and stakeholders alike. DOF is committed to the pillars
of People, Planet, Prosperity and Principles and believes
this concept is integral to future sustainability initiatives
and communication.
All the Group companies are certified to ISO 9001:2015,
ISO 14001: 2015, and ISO 45001:2018. The certificates
are issued at Group (DOF ASA) level, and valid until
December 2023.
Employees
The market conditions required the organisation to adapt
its capacity and posed a threat to the Group’s human
capital. At the end of 2021, the headcount in the Group
was 3,820 people, of which approximately 13% were women.
2,361 men and 358 women are under full-time permanent
contract. Further distribution is 73 men and 6 women on
full-time temporary contract. 847 men and 79 women are
self-employed workers. 9 men and 14 women have part-
time permanent contract. Finally, 46 men and 27 women
are working under part-time temporary contracts.
The market is still challenging with regards to contract
terms and rates, and the Board of Directors is continuously
monitoring the need for the Group to adapt its capacity.
The aim going forward will be to keep the capability to
maintain the Group’s flexible workforce and to retain
core competencies.
Equal opportunities and anti-discrimination
The Group has focus on diversity and strives to create
equal opportunities for all employees, regardless of their
ethnic background, nationality, descent, colour, language,
religion, lifestyle or gender. The Group’s ‘Equal Employment
Opportunity’ policy clearly states that the Group is
committed to be an equal opportunity employer. This
means that all business units within the Group will select
and appoint the most suitable person for a position based
on their attitude, skills and qualifications. The Group also
has a zero-tolerance policy for workplace harassments.
Despite all eorts we sadly have to report three sexual
harassment cases in 2021.
Our campaign to promote and secure retention of female
managers and captains has been continued in 2021, with
Human Resources overview
It is the expertise and competencies
of our people that will determine
DOF’s success.
Number of employees 2021
2014
2015
2016
2017
2018
2019
2020
2021
1,0000 2,000 3,000 4,000 5,000
38
dof integrated annual report 2021
communication internally and externally. Several meas-
ures such as flexible work hours, and working from home,
has been promoted to secure a balanced workforce and
to create equal opportunities. This also includes dialogue
with labour unions for flexible oshore rotation.
Human Rights and Labour standards
The Group embraces practices consistent with international
human rights standards and operates in compliance with
fundamental as well as local labour standards. The Group’s
policies and standards are based on International Labour
Organisation (ILO) conventions, and they prohibit any
use of forced or child labour. The Group recognises and
respects employees’ right to freely associate, organise and
collectively bargain, and the policies are compliant with
working hour requirements as established by local laws.
Several initiatives have been taken during the year
to ensure that slavery and human tracking are not
occurring within the supply chain nor in any part of the
Group’s activities. The Group’s human rights and slavery
statement is available on the Group’s website. In 2020,
Amnesty International ranked DOF in the top five global
companies based in the Nordics with the best score related
to human rights and responsible employer.
Health, safety, and the working environment
Throughout 2021, the Group has experienced several
COVID-19 cases among employees. Some cases resulted
in hospitalisation, but there have not been any fatalities.
Cases have been handled by regional emergency response
teams, in close dialogue with the corporate emergency
response team and company doctors.
At the end of the year when the Company started to
prepare for a normalisation, the new OMICRON variant
hit us hard and hundreds of employees were infected.
Nevertheless, due to high vaccination rate in DOF, the
impact and symptoms of the infection was greatly reduced
in most cases.
DOF will in future handle COVID-19 outbreak as an
influenza-like infection and be guided by our medical
protocols oshore and HR handbooks onshore and loyally
follow advice directed by WHO and regional legislation.
The Group strives to improve safety and environmen-
tal performance across all worksites, globally. The Group
experienced six Lost Time Incidents (LTI) in 2021, which
resulted in a Lost time injury frequency rate (LTIFR) of
0.68 LTIs per million man-hours. Combined with eight
Medical Treatment Cases and four Restricted Workday
Cases, the Total recordable injuries rate (TRIR) was 2.05
recordable incidents per million man-hours.
DOF Subsea is subject to court proceedings for alleged
oences against the Oshore Petroleum and Greenhouse
Gas Storage Act 2006, in relation to a 2017 saturation
dive campaign undertaken in Australian waters. The
Matter has been before the Australian Courts with the
proceedings being concluded end March 2022. The Court’s
determination is expected to be finalised by the end of
the second half 2022.
The Group’s ambition is to be an incident free organisation.
Through the ‘Safe the RITE way’ program, the Group has
been able to establish a unified safety culture, as well as a
stronger safety cooperation with clients, industry partners
and suppliers. A survey among our oshore employees early
in the year concluded with a strong and unified safety
culture build around our values and Safe the RITE way.
In 2021, absence due to illness has been 3.73 per cent,
which is above the Group’s target of 3 per cent. The
working environment is monitored by various means of
activities, including working environment surveys.
Business integrity and ethics
Integrity is the core of multiple aspects of the Group’s
business model, both from an internal and external
perspective. As one of the governing core values, the
Group has established integrity training throughout the
organisation. This seeks to ensure sound business practices
and decisions determined and executed in accordance
with the Group’s Code of Business Conduct, promoting
everyone to display professional competence, due-diligence,
confidentiality and professional behaviour in everything
we do on behalf of the Group.
A new Ethics Helpline was launched in 2019. The help-
line is operated by a third-party company and provides a
platform for reporting unacceptable conduct, when normal
reporting lines cannot be used. The helpline allows for
communication with the reporters even if they prefer to be
anonymous, which can be essential during investigations.
Anti-corruption and anti-bribery
The Group has a zero-tolerance policy for bribery and
corruption. The Group’s policy is to conduct all business
in an honest and ethical manner. The Code of Business
Conduct sets clear expectations for all employees and is
supplemented by internal training.
It is the desire of the Board of Directors that the
Group shall be recognised by its high ethical standards.
Anti-corruption and anti-bribery measures are regularly
evaluated and assessed to ensure that they are aligned
with legal requirements and best practice. There have
been no confirmed incidents of corruption during 2021.
Compliance with law
The Group acknowledges the importance for its internal
and external stakeholders of being a reliable partner,
compliance is therefore a key topic for the Group.
Compliance with both international and local laws and
regulations and industry standards is important for the
Group. In 2021, there have been no significant fines or
non-monetary sanctions for non-compliance with laws and/
or regulations in the social and economic area.
External environment
The Group’s environmental management system ensures
39
dof integrated annual report 2021
that the operations are eectively managed, and that
continuous improvement of environmental performance is
achieved. The energy eciency program of the Group is
continuously challenged with the aim to improve environ-
mental performance.
During 2021, the focus on energy eciency has increased
by implementing Key Performance Indicators (KPIs) related
to environmental performance, e.g. energy consumption
and CO2 emissions. During the year, there have been no
major spills to the external environment and no spills
that resulted in fines or other non-monetary sanctions
from local governments.
Climate change and emissions to the air
The Group has several processes to ensure that direct
and indirect climate influencing activities are kept at a
minimum and consistent with the Group’s overall approach
to climate change.
Defining and measuring environmental sustainability and
risks associated with the Group’s business activities are
important. Investments in systems and equipment have been
made to record, understand and improve environmental
performance. This has been achieved through SEEMP,
ISO 14001 and CDP, where the DOF Group achieved a
score of B in 2021.
Through continued focus on technologically advanced
vessels and an improved environmental culture on all
levels of the organisation, the Group strives to achieve
the objective of a reduction in CO2 emissions through
reduced fuel consumption.
Continuous improvement of our operations
It is the view of the Board of Directors that continuous
improvement helps to reduce risk, improve performance and
align ways of working. Through the Group’s improvement
program, the Group has streamlined and systematised
its improvement work. Based on thorough planning,
improvement projects have been carried out through
the Group’s value chain, focusing on standardisation
and improved efficiency. The improvement initiatives
will continue in 2022.
Risk Management and Compliance
The global community is witnessing the invasion of Ukraine,
and we see the repercussions of fractured tensions in
international cooperation. However, the Group has not
identified any potential exposure to assets or operations in
Eastern Europe, specifically Ukraine and Russia. 2022 will
undoubtedly be a year that requires strong global governance
and eective risk management eorts. As exposed by COVID-19,
crises prompt unexpected and unpredictable paths. DOF will
continue applying our values as guiding principles of good
corporate governance and behaviour. Our company values
and Code of Business Conduct are essential to navigating
DOF through the volatile, complex, and uncertain challenges
that we may see unfold in the coming year.
The Group’s risk management and internal control are
based on the principles in the Norwegian Code of Practise
for Corporate Governance. The Board of Director’s view
is that continuous improvement of the Group’s operations
in a systematic manner is a necessity in order to manage
risks and realise opportunities to ensure ecient operations
in line with the stakeholder’s expectations.
The Group has established routines for weekly, monthly and
quarterly reporting regarding operations, liquidity, financing,
investments, HSEQ, HR, taxes and legal performance. Five-
year financial forecasts including information on market
assumptions are prepared on a regular basis. The Group
carries out annually detailed budget processes at all levels.
Due to generally challenging markets and the Group’s
continued weak financial position, the focus on liquidity,
profit or loss forecast control and financial compliance
control has been high during the year.
The operational and financial processes are standardised,
and the same reporting and control structures are in
use for all companies in the Group. These processes
are integrated in the Group’s ERP system and supported
by the Group’s policies, guidelines and standards in the
Business Management System (BMS).
The Group’s due diligence processes have been strengthened
in recent years and involve the global competence within
legal, finance and ESG. The new vendor evaluation database
allows management to assess the suppliers and subcontractors
towards the Group’s requirements for ESG. The process
is built upon UN Global Compact guidelines and ISO
standards. The new DOF Workbook is the foundation for
all the training in the years to come. The modules have
a holistic approach and will be the centre of compliance
for all our activities as well as the Group stakeholders’
expectations for DOF to be a leading company, aligning its
activities with the UN’s sustainability development goals.
Investment in modern communication tools has enabled
global alignment to streamline the organisation, allowing
further development of our human and organisational
capital.
Alignment towards the Norwegian Transparency act
On 1
st
of July 2022 the Norwegian Transparency Act will
enter into force and DOF has been part of the ocial
hearing process on the new law and given concrete
proposal on practical means to obey the intention of
Transparency Act based on our experience on how we
deal with fundamental human rights and decent working
conditions globally. The organisation is aligned and prepared
for the new requirements.
Shareholders & the Board
By the year-end, the share capital was NOK 316 million
divided into 316 million shares. The final outstanding
amount of the Subordinated Convertible Bond was converted
in to shares on the 7
th
of July, and the main shareholder
Møgster Oshore AS now controls 31.6% of the Company.
40
dof integrated annual report 2021
In March 2021, the Oslo Stock Exchange decided to
allocate DOF ASA, ISIN: NO0010070063 to Penalty Bench
as the Issuer is in breach of Oslo Rule Book II section 4.1
regarding minimum market value of NOK 1 per share. By
31
st
of December 2021 the share price was NOK 0.60/share.
The Company has signed D&O insurance on behalf of
the board members and executive management to protect
against claims which may arise from the decisions and
actions taken within the scope of their regular duties.
The insurance policy is signed with international reputable
companies.
Financial performance
The Group revenue in 2021 totalled NOK 6,356 million
(NOK 6,212 million), and the operating profit before
depreciation and finance (EBITDA) totalled NOK 2,078
million (NOK 2,105 million). The main reason for a lower
margin in 2021 versus 2020 has been a higher activity
from subsea projects where the margins are normally
lower than from vessels on time charter contracts. The
EBITDA in 2020 was further positively impacted by
significantly strengthened USD to NOK and BRL during
1
st
half of the year and one-o termination fees due to
cancelled contracts. A net gain of NOK 109 million (NOK
19 million) represent gain from sale of five vessels.
The operating profit (EBIT) amounted to NOK 636 million
(NOK -2,010 million) of which NOK -1,030 million (NOK
-856 million) represents depreciation and NOK -412
million (NOK -3,258 million) represents impairment. The
basis for the impairment is fair market values received
from independent broker companies and value in use
(VIU) calculations. The drop in the fair market values
for the Group’s fleet has been 7.5% (27%) in 2021 and
is significantly lower than previous year. There is still a
risk for further impairment of the fleet and the booked
vessel values are further exposed to volatility in FX rates.
Net financial items in 2021 totalled NOK -1,212 million
(NOK -2,797 million), of which finance costs represented
NOK -1,076 million (NOK -1,065 million). Finance income
amounts to NOK 403 million (NOK 71 million) and have
been positively impacted by a gain of NOK 249 million
after DOF Subsea has prepaid a loan facility at a significant
discount. Net currency loss and changes in fair value
of financial instruments amounted to NOK -539 million
(NOK -1,803 million).
Taxes amounted to NOK -54 million (NOK -153 million).
The Group reported a loss for 2021 of NOK -630 million
(NOK -4,959 million) and adjusted for other comprehensive
income the net result was NOK -428 million (NOK -4,343
million).
The consolidated balance sheet at year-end 2021 totalled
NOK 18,951 million (NOK 18,993 million). Included in the
non-current assets are mainly vessels and subsea equipment
at a book value of NOK 12,199 million (NOK 12,844
million) and the shares in the DOFCON JV at a value of
NOK 2,730 million (NOK 2,336 million) representing 79%
of the Group’s total assets. The Group’s cash reserve has
dropped from NOK 1,880 million to NOK 1,797 million
in 2021 even though standstill agreements have been
applicable for the majority of the Group’s debt. This is
mainly due to increased capital expenditure partly due to
postponed class dockings from 2020 and higher activity
in the subsea regions, which has impacted the working
capital. Restricted cash by year-end was NOK 172 million
(NOK 183 million). Parts of the Group’s unrestricted
cash is not immediately available partly due to the
existing standstill agreements, ref note 19 to the accounts.
The Group’s equity is negative due to continuing weak
results and impairments of assets.
Consolidated profit or loss
Amounts in NOK million 2021 2020 Change
Operating revenue 6 356 6 212 2%
EBITDA 2 078 2 105 -1%
Depreciation -1 030 -856 -20%
Impairment -412 -3 258 87%
EBIT 636 -2 010 132%
Consolidated balance sheet
Amounts in NOK million 31.12.2021 31.12.2020 Change
Non-current assets 15 074 15 462 -3%
Cash and cash equivalents 1 797 1 880 -4%
Equity -1 326 -898 48%
Net interest bearing debt 16 675 16 286 2%
41
dof integrated annual report 2021
The Group reported net interest-bearing debt of NOK
16,675 million (NOK 16,286 million) as of 31
st
of
December 2021. The current debt totals NOK 20,021
million (NOK 19,528 million), of which NOK 18,692
million (NOK 18,301 million) represent interest bearing
debt where standstill agreements have been applicable
and negotiations with the lenders have been ongoing
since 2
nd
quarter 2020. As a consequence of that a
long-term refinancing solution is not yet in place, the
relevant interest-bearing debt is classified as short-
term based on that the standstill agreements with the
secured lenders and bondholders are less than 12 months.
The Group’s net cash flow from operating activities was
NOK 1,194 million (NOK 1,445 million), of which NOK
280 million is paid interest and other finance cost.
NOK 610 million represents capitalised interest due
to the standstill agreements. The net cash flow from
investments activities was NOK -280 million (NOK -3
million) of which NOK -747 million (NOK -299 million)
represent main class renewals and conversions of vessels,
NOK 267 million (NOK 276 million) is mainly repayment
of shareholders loan from the DOFCON JV and NOK
172 million (NOK 19 million) are contribution after sale
of vessels. The cash flow from financing activities was
NOK -1,003 million (NOK -423 million) and represent
amortisation of debt for the subsidiaries in Brazil and
prepayment of loans and leases. Net changes in cash and
cash equivalents for the year was NOK -89 million (NOK
1,018 million).
Parent company financial statements
The parent company financial statements for 2021 show
a revenue of NOK 44 million (NOK 53 million) and an
operating loss of NOK -11 million (NOK 2 million). Net
financial items are NOK -473 million (NOK -2,590 million)
and are impacted, as in the previous year, by impairment
on investments in subsidiaries of NOK 40 million (NOK
-63 million) and loss and accruals on guarantees of NOK
443 million (NOK -2,549 million). Losses before taxes were
NOK -485 million (NOK -2,589 million) and losses for the
year were NOK -485 million (NOK -2,859 million).
The parent company's balance sheet as of 31
st
of December
2021 totals NOK 3,928 million (NOK 3,800 million),
of which booked equity totalled NOK 37 million (NOK
522 million).
Financing and capital structure
The Group’s total interest-bearing debt by 31.12.2021
comprises secured debt of NOK 14,543 million (NOK
14,658 million), unsecured bond debt of NOK 2,979 million
(NOK 2,554 million), and other unsecured and right of
use debt of NOK 1,079 million (NOK 1043 million). The
main portion of the debt is drawn in USD.
The majority of the Group's vessels built in Brazil are
financed by BNDES (Brazilian Development Bank), with
tenor on average of 18-20 years and a fixed interest
rate for the full duration of the loans. The remainder of
the secured debt represent funding from Export Credit
institutions (Eksportfinansiering Norge - Eksfin) and
reputable European banks.
The Board and Management have, since 2019, been working
on a long-term refinancing solution for the Group which
includes discussions with the secured lenders and the
bondholders.
The restructuring of the Group’s debt has been ongoing
in 2021 and standstill agreements have been agreed
until the 30
th
of April 2022 with 91% of the secured
lenders in DOF Rederi AS and DOF ASA, and with 95%
of the secured lenders within the DOF Subsea Group. In
Norskan Oshore Ltda. a standstill agreement has been
agreed for the facilities with the international banks.
The BNDES facilities have been served according to
refinancing agreements signed in February 2020, which is
also applicable for one facility in DOF Subsea Brasil Ltda.
The DOF Subsea standstill agreements assume payment
of principal and interest of a NOK 100 million credit
facility provided by certain lenders in March 2020. The
outstanding amount of this facility was NOK 47 million
by the end of the year.
The relevant Group companies have imposed unilateral
standstill to the secured lenders not participating in the
standstill agreements. One of the DOF Subsea secured
lenders has previously requested repayment of a facility
of USD 47 million, and in the 3
rd
quarter this facility
was prepaid at a significant discount. Another secured
lender has enforced an account pledge for one loan
facility in DOF Subsea.
The bondholders in DOFSUB07, DOFSUB08 and DOFSUB09
have accepted a standstill until the 30
th
of April 2022.
The DOFCON JV is not part of the standstill agreements
and serves its debt according to the terms in the relevant
loan facilities. Financial covenants related to the Group’s 50%
guarantee of the DOFCON loan facilities have been waived.
The Company is guarantor for the debt in Iceman AS of
NOK 444 million, where approximately 50% of the DOF
guarantee has been counter guaranteed by other shareholders
in Iceman AS. As part of the restructuring of the Group
the main shareholders in Iceman and the lenders have
signed an agreement on the counter guarantees which has
resulted in that the Company has become the majority
shareholder of Iceman AS, hence this company was fully
consolidated from the 3
rd
quarter. A refinancing of Iceman
is yet to come in place and the current standstill agreement
is applicable until the 30
th
of April 2022.
The Group will continue the dialogue with its creditors to
secure a long-term financial solution for the Group. Various
debt restructuring proposals have been discussed and
the proposals include comprehensive restructuring of the
Group’s balance sheet, including conversion of debt, reduced
amortisation and soft terms on the Group’s loan facilities.
42
dof integrated annual report 2021
Risk
The Group has limited exposure to Russia and Ukraine,
however the general risk has increased following the
invasion of Ukraine and the impact on the world economy.
The Covid pandemic may further impact the Group’s
results going forward.
Climate risk
The Group's ability to manage GHG Emissions is a key
component of the organisation’s ESG profile. Providing a
vessel fleet and services with reduced GHG emissions can
become a value proposition for clients and investors or
negatively impact upon competitiveness of the organisation
against peers. The main concern is the Group’s ability to
meet changing stakeholder expectations associated with
Greenhouse Gas emission from ships, including Nitrogen
Oxides (NOX), Sulphur Oxides (SOX) and Particulate
Matter (PM) in harbour areas.
Financial and liquidity risk
The Group is exposed to financial and liquidity risk
through its operations and the requirement for refinancing
and periodical maintenance of existing vessels.
The Group executed a substantial newbuilding programme
in the period from 2010 to 2019 and has historically
achieved satisfactory long-term financing of its new
assets. However, a sustained weak market since 2015 has
increased the refinancing risk for the Group significantly,
and the Group has since 2019 experienced that regular
refinancing has been impossible.
The Norwegian high yield bond market and the equity
market were until 2018 an important financing resource
for the Group. However due to the depressed market and
several debt-restructurings within the OSV segment, both
the bond and equity markets are practically closed.
Currency risk
The Group operates globally and is exposed to foreign
exchange risk arising from various currency exposures,
mainly with respect to USD towards NOK and BRL, but
is also exposed to AUD, EUR, CAD and GBP. Foreign
exchange risk arises from future commercial transactions,
contractual obligations (assets), liabilities and investments
in foreign operations. The Group aims to achieve a
natural hedge between cash inflows and cash outflows
to secure the debt funding in equivalent currency as
the committed earnings from the charter contracts, and
further to manage the remaining foreign exchange risk
arising from commercial transactions, through forward
contracts and similar instruments as appropriate. However,
due to the current financial position for the Group,
new forward contracts have become more challenging.
Hence, the Group’s liquidity risk has increased if the
currencies fluctuate.
Interest rate risk
The Group is exposed to changes in interest rates as parts
of the Group’s liabilities have a floating rate of interest. The
Group has reduced its interest rate exposure by entering
into interest rate swap agreements. Moreover, all vessels
with financing via BNDES in Brazil are secured at a fixed
rate of interest throughout the duration of the loan. Due
to the Group’s financial position the banks are reluctant to
enter into any interest forward contracts (swap contracts),
and the Group’s exposure to volatility in interest rates
has increased.
Of the Group's total debt, 52% has a fixed rate of interest.
This includes financing via BNDES and Eksfin.
Credit risk
The Group’s credit risk has historically been low as the
Group’s customers traditionally have had good financial
capability to meet their obligations and have high credit
ratings. The sustained challenging market situation has
resulted in changes to the credit ratings for some of the
Group's customers, and thereby increased the credit risk.
Historically, the portion of receivables not being collectable
has been low. Revenue from the 10 largest customers,
large oil companies and operators, represent approximately
74% of the Group`s revenue, whereof Petrobras represent
the largest customer.
Market and price risk
The Group is exposed to cost increases in general, including
conversions and maintenance of vessels. The majority of
the Group's conversions and main class renewals are done
at fixed prices with the yards. The Group further attempts
to reduce price risk by signing contracts with suppliers
with the necessary financial strength and expertise to
complete projects in accordance with agreements.
The Group is exposed to market fluctuations which
have resulted in lower utilisation and reduced earnings
for the Group’s vessels and services due to continuing
challenging markets since 2015. The Group’s strategy
is to continue its focus on long-term contracts for its
fleet, however, during the last five years most of the
clients prefer shorter term contract renewals. There are
signs of improved markets, but the Group has several
contracts up for renewal in 2022 hence both the price
and utilisation risks are applicable.
Tax risk
The Group has a global organisation and operate vessels
and subsea services in several different tax jurisdictions.
The income and profit from these operations are subject
to income taxes and judgment may be involved when
determining the taxable results. Tax authorities in different
jurisdictions may challenge the calculation of taxes
payable from prior periods through tax audits. Several
tax audits have been conducted over the last couple of
years, where some of the tax claims are disputed by the
Group, ref note 34 ‘Contingencies’ to the accounts. In
general, attention from tax authorities is increasing, and
the trend is that each individual country has increased
focus on protecting their tax base.
43
dof integrated annual report 2021
Going concern
The consolidated financial statements and the Parent
Company’s financial statement are prepared on the
assumption of going concern. The Group's financial position
is not sustainable, and there is material uncertainty
related to going concern. Rolling short-term standstill
agreements with the majority of the Group’s lenders have
been ongoing since 2
nd
quarter 2020 and the current
standstill agreements are applicable until 30
th
of April
2022. The Group is on short-term dependent extension
of standstill periods and on longer term dependent on a
robust refinancing solution to continue as going concern.
The restructuring proposals being discussed with the
secured lenders and bondholders include conversion of
debt to equity which will significantly dilute the current
holders of equity in the Company. The dialogue with
the lenders is constructive, but a refinancing solution is
not yet in place. The Group is dependent on continued
standstill agreements with its creditors until a long-term
financial solution is agreed to maintain as going concern.
Profit & loss allocation
The parent company financial statements have returned a
loss of NOK -485 million. The Board of Directors proposes
to allocate this figure against other reserves.
The consolidated financial statements have a loss of
NOK -630 million, and total comprehensive loss of NOK
-428 million, of which NOK -23 million is attributed to
non-controlling interests and NOK -405 million is allocated
to other reserves.
Events after balance sheet date
New contracts
DOF Subsea has been awarded an extension of the current
contract with a key renewable’s client for Skandi Acergy in
the North Sea and another project in Trinidad and Tobago
for the vessel Skandi Constructor. The DOF Subsea Asia-
Pacific region has further been awarded a 3-year contract
plus 2 x 1- year options to provide a Multi-Purpose Supply
Vessel (MPSV) to Esso Australia Pty Ltd. In Australia DOF
Subsea has been awarded Woodside Energy Limited's Enfield
XT Retrieval and Oshore Support Services contract, expected
to be undertaken in Q3 and Q4 2022, utilising MPSV
Skandi Hercules. DOF Subsea USA has been awarded the
first SURF project for the Skandi Constructor from Vaalco
Energy at the Etame field, oshore Gabon. Engineering and
design work has commenced with subsea work forecasted to
begin in July and expected to be completed by September
2022. In addition DOF Subsea won multiple new contracts
with Renewables and Oil & Gas utilising Skandi Acergy,
Skandi Constructor, Skandi Hera and selected third-party
vessels for 185 vessel days. In GOM DOF Subsea has entered
into an agreement with Otto Candies for the charter of
the Jones Act compliant vessel Chloe Candies for a firm
period of one year from May.
Assets
DOF Rederi AS has agreed to sell the vessels Skandi
Rona (PSV built in 2002), Skandi Foula, (PSV built
in 2002), and Skandi Sotra (PSV built in 2003). The
current charterer of Geosea (RSV, built in 2002)
owned by DOF Subsea Rederi AS, has exercised its
purchase option.
Finance
On 31
st
of March 2022, DOF ASA and DOF Subsea AS
have agreed to further extend the principal and interest
suspension agreements with, or received extensions of
similar concessions from, secured lenders representing
in total 91% of the secured debt of DOF ASA and DOF
Rederi AS and in total 95% of the secured debt of
companies within the DOF Subsea AS Group (excluding
DOF Subsea Brasil Servicos Ltda.) until the 30
th
of
April 2022. The ad hoc group of bondholders in DOF
Subsea have agreed to further extend the standstill
agreement until the 30
th
of April 2022 in accordance
with the resolution in the bondholders' meeting held 28
February 2022. The extensions of the standstill periods
will facilitate the DOF Group’s continued dialogue with
its secured lenders and the bondholders under the
DOF Group’s bonds regarding a long-term financial
restructuring of the DOF Group.
Outlook
The O&G markets have improved as several regions have
seen increased activity in all the Group’s segments towards
end of the year and a high tender activity has continued
into 2022. The current situation in Eastern-Europe has
however created instability in the world economy and it
is dicult to predict how the market will respond to this
situation going forward. The Group’s financial position is
further not sustainable as the Group has through 2021
operated in an environment with short-term standstill
agreements (often monthly extensions). If a robust long-
term refinancing solution is not achieved, the Group
cannot continue as going concern. If the Group cannot
be treated as going concern the valuation of the Group’s
assets will be further revised and will result in significant
impairment of the Group’s assets.
The annual report is prepared on the assumption of going
concern and this assumption is based on agreed standstill
agreements (applicable until 30
th
of April 2022) with the
majority of the Group’s lenders. The debt restructuring
currently discussed include soft terms on the loan facilities
and conversion of substantial amounts of debt to equity
which again will significantly dilute the current holders
of equity. The dialogue with the lenders has continued
to be constructive and progress has been made so far
into 2022. There are still some issues pending, and a
refinancing solution is not yet in place.
In parallel with the ongoing debt restructuring, the
management and Board have continued the focus on
operational and cost efficiency improvements and on
44
dof integrated annual report 2021
implementation of new technology and digital solutions.
In response to the ongoing shift in the energy markets
and future customer requirements, the Group has a strong
forward-looking focus on developing strategic opportunities
and new lines of business utilising the Group's combined
fleet, services, and competence within the limitations of
the financial position due to the debt restructuring of
the Group.
The Company emphasizes that the information included
in this annual report contains certain forward-looking
statements that address activities or developments that
the Company anticipates will or may occur in the future.
The statements are based on assumptions and estimates,
and some of them are beyond the Company’s control and
therefore subject to risks and uncertainties.
The Board of Directors is thankful for the eort from
all employees through 2021.
Kathryn M. Baker
Director
Storebø, 6
th
of April 2022
The Board of Directors of DOF ASA
Hans Olav Lindal
Chairman
Helge Singelstad
Deputy Chairman
Mons S. Aase
CEO
Marianne Møgster
Director
45
dof integrated annual report 2021
corporate governance2021
Background
DOF ASA (DOF or the Company), is the parent company
in DOF’s group of companies (the Group). It is established
and registered in Norway and governed by Norwegian law.
In 2006 the Company adopted its first formal Corporate
Governance Policy. The Company is obliged to act in
compliance with laws and regulations as applicable
from time to time in respect of handling and control of
insider trading rules and information to the shareholders
and the market. The latest revision to the Corporate
Governance guidelines was published by Norwegian
Committee for Corporate Governance (NUES) on the
14
th
of October 2021 (www.nues.no), and the Company’s
current Corporate Governance Policy is effective as of
that date. This fully reflects the Board’s approval of
these guidelines without reservation.
1 Governance principles
DOF considers good corporate governance to be a
prerequisite for value creation and trustworthiness, and
for access to capital.
In order to secure strong and sustainable corporate
governance, it is important that DOF ensures good and
healthy business practices, reliable financial reporting
and an environment of compliance with legislation and
regulations across the Group.
DOF has governance documents setting out principles
for how business should be conducted. These apply to
all entities within the Group. References to certain more
specific policies are included in this corporate governance
policy where relevant. DOF's governance regime is approved
by the Board. For further information please visit DOF
ASA’s website www.dof.com.
2 Applicable rules and regulations
As a Norwegian public limited company listed on the
Oslo Stock Exchange, the Company is subject to corporate
governance regulations contained in the Public Limited
Companies Act 1997 (Asal.), the Securities Trading Act
2007 (Vhpl.), the Stock Exchange Act with regulations
(børsreg.) and other applicable legislation and regulations.
The Company endorses the Norwegian Code of Practice
for Corporate Governance (Nw.: Norsk anbefaling for
eierstyring og selskapsledelse), issued by the Norwegian
Corporate Governance Board, most recently revised on
the 14
th
of October 2021 (the Code).
The Code is based on "the comply or explain principle"
whereby listed companies must comply with the Code or
explain why they have chosen an alternative approach.
DOF will follow the Code, and any deviation from the
Code are included in this corporate governance statement.
A description of the most important corporate governance
principles of the Company shall also be made available for
external parties on the Company's website in accordance
with the Company's IR-policy.
3 Main objectives for corporate governance
in DOF
The Corporate Governance Policy of the Company is
a governing document containing measures which are
continuously implemented to secure ecient management
and control of the activities of the Company.
DOF's corporate governance policy is based on the Code,
and as such is designed to establish a basis for good
corporate governance, to support achievement of the
Company's core objectives on behalf of its shareholders,
including the achievement of sustainable profitability for
the shareholders of DOF. The manner in which DOF is
governed is vital to the development of its value over time.
DOF believes good corporate governance involves openness
and trustful cooperation between all parties involved in
the Group: the shareholders, the Board and executive
management, employees, customers, suppliers, public
authorities and society in general.
By pursuing the principles of corporate governance, approved
by the Board of DOF, the Board and management shall
contribute to achieving the following objectives:
• Openness. Communication with the interest groups
of DOF shall be based on openness in issues
relevant to the evaluation of the development and
position of the Company.
• Independence. The relationship between the Board,
the management and the shareholders shall be based
on independence. Independence shall ensure that
decisions are made on an unbiased and neutral basis.
• Equal treatment. One of DOF's prime objectives is
equal treatment and equal rights for all shareholders.
• Control and management. Good control and corporate
governance mechanisms shall contribute to achieving
predictability and reducing the level of risks for
owners and other interest groups.
The development and improvements of the Company's
corporate governance principles is an ongoing and
important process for the Board.
46
dof integrated annual report 2021
4 Business
The objective of the Company is to be engaged in trading
and shipping business and other oshore related activity,
including participation in other companies with the same
or similar objects. This statement of objective is set out
in §2 of the Company’s Articles of Association.
The Board has defined clear objectives, strategies and risk
profiles for the Company's business activities so that the
Company creates value for shareholders in a sustainable
manner. The Company has established guidelines for how
it integrates considerations related to its surroundings
and stakeholders into its value creation.
The Board evaluates these objectives, strategies and risk
profiles on a yearly basis.
5 Equity and dividends
5.1 Capital adequacy
The Board is responsible for ensuring that the Group has
a capital structure that is appropriate to the Company's
objective, strategy and risk profile, and that the capital
requirements set forth in laws and regulations are met.
The Board shall continuously monitor the Group's capital
situation and shall immediately take adequate steps should
it be apparent at any time that the Company's equity or
liquidity is less than adequate.
The DOF ASA share capital was per the 31
st
of December
2021 NOK 316,456,167 divided into 316,456,167 shares and
the main shareholder Møgster Oshore AS currently owns
100,007,313 shares, representing approximately 31.6% of the
shares on a fully diluted basis.
The Board and Management have through 2021 been working
on a long-term debt restructuring solution for the Group which
includes discussions with the banks and the bondholders.
The current proposals discussed include conversion of debt
to equity, which in case will have significant adverse eect
for the current shareholders in the Company. The dialogue
with the lenders is constructive but a refinancing solution
is not yet in place. The Group is dependent on continued
standstill agreements with its creditors until a refinancing
solution is agreed to maintain as going concern.
5.2 Dividend policy
The Company shall, at all times, have a clear and
predictable dividend policy established and disclosed by
the Board. The basis for any proposal for the Board to
be provided with an authorisation to approve distribution
of dividends shall be explained.
5.3 Authorisations to the Board
Any authorisation granted to the Board to increase the
Company's share capital or purchase treasury shares
shall be restricted to defined purposes. When the general
meeting is to pass resolutions on such authorisations to the
Board for dierent purposes, each authorisation shall be
considered and resolved separately by the general meeting.
Authorisations granted to the Board to increase the share
capital or purchase treasury shares shall be limited in time
and shall in no event last longer than two years. However,
it is recommended that an authorisation to increase the
share capital or purchase of treasury shares does not
last longer than until the Company's next annual general
meeting and the Company will follow that recommendation.
6 Equal treatment of shareholders
6.1 Basic principles
All shareholders shall be treated on an equal basis, unless
there is just cause for treating them dierently.
6.2 Share issues without pre-emption rights for
existing shareholders
In the event of an increase in share capital through
issuance of new shares, a decision to deviate from existing
shareholders' pre-emptive rights to subscribe for shares
shall be justified. Where the Board resolves to issue
shares and deviate from the pre-emptive rights of existing
shareholders pursuant to an authorisation granted to
the Board by the general meeting, the justification will
be publicly disclosed in a stock exchange announcement
issued in connection with the share issuance.
6.3 Transactions in treasury shares
Any transactions carried out by the Company of treasury
shares shall be carried out on Oslo stock exchange, and
in any case at the prevailing stock exchange prices. In
the event that there is limited liquidity in the Company's
shares, the Company will consider other ways to ensure
equal treatment of shareholders. Any transactions by the
Company of treasury shares is subject to notification
requirements and shall be publicly disclosed in a stock
exchange announcement.
7 Freely negotiable shares
The shares of the Company are freely negotiable and there
are no limitations in any party's right to own, trade or
vote for the shares in the Company.
47
dof integrated annual report 2021
The Board will consider the annual general meeting to
be held by video- and/or phone conference, participation
by circulations of documents, electronical voting systems
or other available alternatives.
9 Nomination committee
9.1 Composition
The Company shall have a nomination committee, cf.
the Company's Articles of Association section 5. The
Company's general meeting elects the members and the
chairperson of the nomination committee, determines
their remuneration and should stipulate guidelines for
the duties of the nomination committee.
All the members of the nomination committee are
independent from the Company's Board and executive
management. The nomination committee does not include
any executive personnel or any member of the company's
board of directors. The CEO and other executive management
shall not be members of the nomination committee. The
composition of the nomination committee should be such
that the interests of shareholders in general are represented.
The Company's guidelines for the nomination committee
have established rules for rotation of the members.
The objectives, responsibilities and functions of the
nomination committee shall be in compliance with
rules and standards applicable to the Group and which
are described in the Company's "Instructions for the
nomination committee".
The nomination committee consist of the following members:
• Roy Reite. Mr. Reite is General Manager of Fjordlaks
AS, but soon he will take on the position as CEO of
SalMar Aker Ocean AS. He has previously served as
CEO of VARD.
• Kristine Herrebrøden. Mrs. Herrebrøden has in 2018
been appointed District Attorney for the county of
Hordaland. She has served as attorney with the Bergen
Municipal Attorney’s oce, and also has extensive
experience in financial and corporate transactions and
dispute resolution from private law firm practice.
• Kristian Falnes. Mr. Falnes has worked as Portfolio
Manager in Skagen Funds for 17 years and has also
served as Investment Director. He is currently
managing his private investment company and serves
as Board Member in companies in various industries.
Mr. Roy Reite was elected Chairman of the nomination
committee, Ms. Kristine Herrebrøden was re-elected member
and Mr. Kristian Falnes was elected new member in the
annual general meeting held on 28 May, 2020, all for a
period of two years.
8 General Meetings
8.1 General meetings
8.1.1 Exercising rights
The Board shall ensure that the Company's shareholders
can participate in the general meeting either through
physical or electronic presence. The Board shall ensure that:
• the resolutions and any supporting documentation
shall be sufficiently detailed, comprehensive and
specific to allow shareholders to understand and
form a view on all matters to be considered at the
general meeting;
• deadlines for shareholders to give notice of their
attendance at the general meeting shall be set as
close to the date of the general meeting as
practically possible. The time limit may not expire
earlier than five days before the meeting;
• the CEO, the members of the Board and the chair
of the nomination committee shall attend the
general meetings, while members of the nomination
committee, the audit committee and the
remuneration committee, as well as the auditor
shall be present at general meetings where matters
of relevance for such committees/persons are on
the agenda; and
• that the general meeting is able to elect an
independent chairperson for the general meeting.
8.1.2 Participation without being present
Shareholders should be able to vote on each individual
matter, including on each individual candidate nominated
for election. Shareholders who cannot attend the meeting
in person will be given the opportunity to vote through
proxy or advance voting. The Company will in this respect
provide information on the procedure and design/prepare
the form for the appointment of a proxy to make voting
on each individual matter possible and should nominate
a person who can act as a proxy for shareholders.
8.1.3 Notification
The annual general meeting is held each year no later
than six months after the end of each financial year.
Notification will be sent out within the deadlines in
the Code of practice, and relevant documentation will
be available on the Group’s website at least 21 days
prior to the general meeting. The financial calendar is
published on the internet and through a notification to
Oslo Stock Exchange.
Participation:
It is possible to register by post, or e-mail. Shareholders
who cannot attend the meeting can authorise a proxy,
and the system facilitates the use of proxies on each
individual item for discussion.
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dof integrated annual report 2021
9.2 Tasks
The nomination committee shall recommend candidates
for the election of members and chairman of the Board,
candidates for the election of members and chairperson
of the nomination committee, and remuneration of the
members of the Board and the nomination committee.
The nomination committee's recommendation of candidates
to the nomination committee shall ensure that they
represent a broad group of the Company's shareholders.
The nomination committee's recommendation of candidates
to the Board shall ensure that the Board is composed to
comply with legal requirements and principles of corporate
governance (cf. clause 10 below).
The proposals from the nomination committee shall include
a reasoning for its proposal of each candidate, as well as
provide a statement of how it has carried out its work. The
nomination committee's proposal shall include information
about the candidates and shall be made available in
accordance with the 21 days' notice to call for a general
meeting. Shareholders shall be given the opportunity to
submit proposals to the nomination committee for candidates
for election to the Board and other appointments in a
simple and easy manner. A date shall be communicated
prior to which such proposals must be submitted to be
considered by the nomination committee.
10 Board; composition and independence
The composition of the Board should consider expertise,
capacity and diversity appropriate to attend to the Company's
goals, main challenges and the common interests of all
shareholders. Each board member should have sucient
time available to devote to his or her appointment as a
board member. The number of board members should be
decided on this basis and shall consist of minimum four
board members. Further, individuals of the Board shall
be willing and able to work as a team, resulting in the
Board working eectively as a collegiate body.
The Board shall be composed so that it can act independently
of any special interests. A majority of the shareholder-elected
members of the Board shall be independent of the executive
management and material business connections of the Company.
Further, at least two of the members of the Board shall
be independent of the Company's major shareholder(s). For
the purposes of this corporate governance policy, a major
shareholder shall constitute a shareholder that owns or
controls 10% or more of the Company's shares or votes, and
independence shall entail that there are no circumstances
or relations that may be expected to be able to influence
independent assessments of the person in question.
The Company is in compliance with the regulation to
have at least two board members who are independent
of a main shareholder (shareholders holding more than
10% of the shares in the Company).
The members of the Board and the chairman of the Board
shall be elected by the Company's general meeting. No
member of the Company's executive management shall be
members of the Board. The general manager is prohibited
from being a member of the Board.
At least half of the members in the Company's Board
shall reside in Norway or another EEA country unless
the Ministry of Finance grants a specific exemption from
the statutory residency requirement. Both genders shall
be represented at the Board with a minimum of 40%
representation each. The term of oce for the board
members shall not be longer than two years at a time.
Members of the Board may be re-elected. The election of
the members of the Board should be phased so that the
entire Board is not replaced at the same time.
The Company's annual report will provide information
Shares controlled directly and indirectly by Board of Directors
2021 2020
No of shares *) Shareholding No of shares Shareholding
Board of Directors
Hans Olav Lindal
Chairman
- 0.00 % - 0.00 %
Helge Singelstad
Deputy Chairman
417 867 0.13 % 417 867 0.14 %
Marianne Møgster
Board member
5 687 339 1.80 % 5 687 339 1.84 %
Kathryn M. Baker
Board member
- 0.00 % - 0.00 %
Helge Møgster
Board member and Chairman until 28 May 2020
17 748 897 5.74 %
*) Via Laco AS, the Møgster family, including Helge Møgster and Marianne Møgster, have direct and indirect control of 99.9975 % of the shares in
Møgster Offshore AS, the main shareholder in DOF ASA.
49
dof integrated annual report 2021
regarding the expertise, experience and independence of
the members of the Board, as well as information on
their history of attendance at board meetings. Further,
the annual report will identify the members of the Board
that are considered to be independent. Detailed information
on candidates for the Board (both appointments and
re-elections) shall be made available within the 21 days'
notice period for calling a general meeting.
Members of the Board are encouraged to own shares in
the Company. However, caution should be taken not to
let this encourage a short-term approach which is not in
the best interests of the Company and its shareholders
over the longer term.
Board members’ shares in the Company (see table on page 49).
11 The work of the Board
11.1 General
The Board will implement instructions for the Board
and the executive management, focusing on determining
allocation of internal responsibilities and duties. The
Board should ensure that members of the Board and
executive personnel make the Company aware of any
material interests that they may have in items to be
considered by the Board. The objectives, responsibilities
and functions of the Board and the CEO shall be in
compliance with rules and standards applicable to the
Group and are described in the Company's "Instructions
for the Board of DOF".
The board instruction outline how the board of directors
and executive management shall handle agreements with
related parties, including that the board on a case-to-case
bases shall consider whether an independent valuation
shall be obtained. The board of directors will present
any such agreements in their annual directors’ report.
In total 13 board meetings have been arranged during 2021.
11.2 Committees
The Board are encouraged to appoint board committees as
such may yield eciency in the Board's work, as well as
secure a more thorough and independent handling of matters
under the responsibility of the Board. In accordance with
Norwegian law, the members of the Board, as a collegial
body, are jointly responsible for making decisions. This
means that no part of the decision-making responsibility
can be delegated to board committees, thus making the
role of appointed board committees preparatory for the
final decision to be made by the Board as a whole. Where
board committees are appointed, the Board shall issue
specific instructions for their work. Furthermore, the board
committees shall have the ability to make use of resources
available in the Company or be able to seek advice and
recommendations from sources outside of the Company.
11.2.1 Audit committee
The Company has an audit committee pursuant to the Asal.
The duties and composition of the audit committee shall
be in compliance with the Asal. The committee is a
working committee for the Board, preparing matters and
acting in an advisory capacity.
The members of the audit committee are elected by and
amongst the members of the Board for a term of up to
two years. The committee members must have the overall
competence required to fulfil their duties based on the
organisation and operations of the Company. The entire
Board shall not act as the Company’s audit committee.
At least one member of the audit committee should be
competent in respect of finance and audit and one be
independent of the Company.
The current audit committee consists of Helge Singelstad
and Kathryn M. Baker.
The objectives, responsibilities and functions of the
audit committee shall be in compliance with rules and
standards applicable to the Company, as described in the
Company's "Instructions for the audit committee".
11.3 Annual evaluations
The Board shall annually evaluate its performance and
expertise for the previous year. This evaluation shall include
the composition of the Board and the manner in which
its member functions, both individually and as a group, in
relation to the objectives set out for its work. The report
shall be made available to the nomination committee.
12 Risk management and internal control
12.1 General
It is the Board who has the responsibility to ensure that
the Company has sound and appropriate internal control
systems and systems for risk management, and that these
are proportionate to and reflect the extent and nature of
the Company's activities. Having eective internal control
systems and systems for risk management in place may
prevent the Group from situations that can damage its
reputation or financial standing.
Having in place an eective internal control system means
that the Company is better suited to manage commercial
risk, operational risk, the risk of breaching legislation and
regulations as well as other forms of risk that may be
50
dof integrated annual report 2021
material to the Company. As such, there is a correlation
between the Company's internal control systems and
eective risk management. The internal control system
shall also address the organisation and execution of the
Company's financial reporting, as well as cover the Company's
guidelines etc. for how it integrates considerations related
to stakeholders into its creation of value.
DOF shall comply with all laws and regulations that apply
to the Group's business activities. The Group's Code of
Conduct describes the main principles for compliance and
how the compliance function is organised.
12.2 Policies
The Company shall have a comprehensive set of relevant
corporate manuals and procedures, which shall provide
detailed descriptions of procedures covering all aspects
of managing the Company's operational business. These
procedures and manuals shall continually be revised
to reflect the best practice derived from experience or
adopted through regulations.
12.3 Annual review and risk management in the annual report
The Board shall annually review the Company's most
important areas of risk exposure and the internal control
arrangement in place for such areas. The review shall pay
attention to any material shortcomings or weaknesses in
the Company's internal control and how risks are being
managed.
The concept of double-materiality brings into focus key
ESG interactions as an extension to the conventional
idea of financial Materiality. Under this concept, any
information on a company is material and should therefore
be disclosed if a reasonable person or stakeholder group
would consider it important. Increasingly, DOF’s stakeholders
are interested in ESG related interactions (in addition to
financial information) surrounding DOF and its Value Chain.
Therefore, it is prudent to also report and subsequently
manage those ESG topics if they are considered material
to stakeholders. The results of DOFs double materiality
assessment is outlined in the Group ESG factbook and
correlated GRI disclosures.
In the annual report, the Board shall describe the main
features of the Company's internal control and risk
management systems as they are connected to the Company's
financial reporting. This shall cover the control environment
in the Company, risk assessment, control activities and
information, communication and follow-up. The Board is
obligated to ensure that it is updated on the Company's
financial situation, and shall continually evaluate whether the
Company's equity and liquidity are adequate in relation to
the risk from the Company's activities, and take immediate
action if the Company's equity or liquidity at any time is
shown to be inadequate. The Company's management shall
focus on frequent and relevant reporting of both operational
and financial matters to the Board, where the purpose is
to ensure that the Board has sucient information for
decision-making and is able to respond quickly to changing
conditions. Board meetings shall be held frequently, and
management reports shall be provided to the board as a
minimum on a monthly basis. Financial performance shall
be reported on a quarterly basis.
13 Remuneration of the Board of Directors
The remuneration of the Board is determined by the
shareholders at the Company's annual general meeting,
based on the proposal from the nomination committee.
The remuneration of the Board shall reflect the Board's
responsibility, expertise, the complexity of the Company
and its business, as well as time spent and the level of
activity in the Board and any board committee members
of the Board participate in.
The remuneration of the Board is not linked to the
Company's performance and share options shall not be
granted to members of the Board. The remuneration to the
Board shall be such that their independence is protected.
Members of the Board, or companies associated with a
board member, shall not engage in specific assignments
for the Company in addition to their appointment as
members of the Board. If a board member nonetheless
does take on any such assignment the entire Board must
be informed and the consideration for such additional
duties is subject to approval by the Board.
The annual report shall provide details of all elements
of the remuneration and benefits of each member of the
Board, which includes a specification of any consideration
paid to members of the Board in addition to their board
remuneration.
14 Salary and other remuneration
for executive personnel
The Company's guidelines for determining remunerations
to the CEO and other executive personnel (the Guidelines)
shall at all times support prevailing strategy and values in
the Company. Remuneration to members of the Company's
executive management is vital for harmonising the Company's
interests with the interests of the leading personnel. The
main purpose of the Guidelines is to allow shareholders
to influence the parameters of the salary and other kinds
of remuneration, creating a culture for remuneration that
promotes the Company's long-term interests, business
51
dof integrated annual report 2021
March 2021. The Company shall also adopt a policy on
whom in the Board who is entitled to publicly speak
on behalf of the Company on various subjects. Further,
the Company shall adopt a contingency plan on how to
respond to events of a particular character of interest.
15.2 Information to shareholders
In addition to the Boards' dialogue with the Company's
shareholders at the general meetings, the Board should
make suitable arrangements for shareholders to communicate
with the Company at other times. This will enable
the Board to develop an understanding of the matters
regarding the Company that are of a particular concern
or interest to its shareholders. Communications with
the shareholders should always be in compliance with
the provisions of applicable laws and regulations and in
accordance with the principle of equal treatment of the
Company's shareholders.
All information distributed to the Company’s shareholders
will be published on the Company’s website at the same
time as it is sent to shareholders.
16 Takeovers
16.1 General
The Board shall have established the main principles for
its actions in the event of a takeover oer.
In a takeover process, the Board and executive management
each have independent responsibilities to ensure that
the Company's shareholders are treated equally and
that there are no unnecessary interruptions to the
Company's business activities. The Board has a particular
responsibility to ensure that the shareholders are given
sufficient information and time to assess the offer.
16.2 Main principles for action in the event of a takeover offer
In the event of a takeover process, the Board shall
abide by the principles of the Code, and ensure that the
following take place:
•
the Board shall not seek to hinder or obstruct any
takeover oer for the Company's operations or
shares unless they have valid and particular
reasons for doing so;
• the Board shall not exercise mandates or pass any
resolutions with the intention of obstructing the
takeover oer unless this is approved by the general
meeting following announcement of the bid;
• the Board shall not undertake any actions intended
to give shareholders or others an unreasonable
advantage at the expense of other shareholders or
the Company;
• the Board shall not enter an agreement with any
strategy while ensuring shareholders influence and the
Company's financial sustainability. The Guidelines shall be
in accordance with the provisions of Section 6-16 a of the
Asal., supplemented by the Norwegian Regulation regarding
guidelines and reporting on remuneration of executive
management dated 11th of December 2020.
A report on salary and other remuneration to the executive
personnel will be prepared in accordance with the Asal.
and relevant regulations.
15 Information and communications
15.1 General information
The Company shall establish guidelines for its reporting
of financial and other information based on openness and
taking into account the requirement of equal treatment
in the securities market. The Company is obliged to
continually provide its shareholders, the Oslo Stock
Exchange and the securities market and financial market
in general with timely and precise information about the
Company and its operations. This information shall be
published in accordance with the Oslo Stock Exchange's
information system.
Relevant information will be given in the form of annual
reports, quarterly reports, press releases, notices to the stock
exchange and through published investor presentations in
accordance with what is deemed appropriate and required
at any given time. Such information shall be published
through Oslo Stock Exchange' information system and/or
be published at the Company's website. The Company shall
clarify its long-term potential, including strategies, value
drivers and risk factors. The Company shall maintain an
open and proactive policy for investor relations, a website
designed to incorporate "sound practices", and shall give
regular presentations in connection with annual and
provisional results.
Unless there are applicable exemptions, and these are
invoked, DOF shall promptly disclose all inside information
(as defined by the Norwegian Securities Trading Act). In any
event, DOF will provide information about certain events,
e.g. by the Board and the general meeting concerning
dividends, amalgamations, mergers/demergers or changes
to the share capital, the issuing of subscription rights,
convertible loans and all agreements of major importance
that are entered into by DOF and related parties.
Separate guidelines have been drawn up for handling
of inside information, see "Instructions for handling of
inside information" and "Instructions for primary insiders"
(www.dof.com) in accordance with the EU Market Abuse
Regulation that entered into force in Norway on 1
st
of
52
dof integrated annual report 2021
oeror that limits the Company's ability to arrange
other oers for the Company's shares, unless it is
self-evident that such an agreement is in the
common interest of the Company and its
shareholders;
•
the Board and executive management shall not
institute measures with the intention of protecting
their own personal interests at the expense of the
interests of shareholders; and
•
the Board must be aware of the particular duty it
has for ensuring that the values and interests of
the shareholders are protected.
In the event of a takeover oer, the Board shall, in
addition to complying with relevant legislation and
regulations, seek to comply with the recommendations
in the Code. This includes obtaining a valuation from an
independent expert. On this basis, the Board will make
a recommendation as to whether or not the shareholders
should accept the oer.
A takeover process gives rise to a particular duty of
care to disclose information, where openness is an
important tool for the Board to ensure equal treatment
of all shareholders. The Board shall strive to ensure that
neither inside information about the Company, nor any
other information that must be assumed to be relevant
for shareholders in a bidding process, remains unpublished.
There are no other written guidelines for procedures
to be followed in the event of a takeover oer. The
Company has not found it appropriate to draw up any
explicit basic principles for DOF's conduct in the event
of a takeover oer, other than the actions described
above. The Board concurs with what is stated in the
Code regarding this issue.
17 Statutory auditor
The Board shall ensure that the Company's auditor
annually submits the main features of the plan for the
audit of the Company to the audit committee annually.
The auditor shall also provide the audit committee with
the following:
• an annual written confirmation of its independence;
• information on services other than statutory audit
provided to the Company during the course of the
financial year; and
• inform about any threats to the auditor's
independence, and provide evidentiary
documentation of the measures implemented to
combat such threats.
The Board shall invite the auditor to meetings that deal
with the annual accounts. At these meetings the auditor
should report on any material changes in the Company's
accounting principles and key aspects of the audit, comment
on any material estimated accounting figures and report
all material matters on which there has been disagreement
between the auditor and the executive management of
the Company.
The Board shall at least once a year review the Company's
internal control procedures with the auditor, including
identification of weaknesses identified by the auditor and
proposals for improvement.
In order to strengthen the Board's work on financial
reporting and internal control, the auditor shall provide
a report to the audit committee on the main features of
the audit in respect to the previous financial year, and
especially mention any material weaknesses identified in the
internal control relating to the financial reporting process.
The Board shall establish guidelines in respect of the
executive management's use of the auditor for other
purposes than auditing. The auditor shall attend the
general meeting if the matters to be dealt with are of
such nature that his or her presence is deemed necessary.
However, the auditor is in any case entitled to participate
in the general meeting.
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financial statements / dof group
Financial Statements DOF Group
Accounts - DOF Group
54
dof integrated annual report 2021
financial statements / dof group
Consolidated Statement of Profit or Loss
Amounts in NOK million Note 2021 2020
Operating revenue
5, 6, 7,15
Payroll expenses 8, 30 -2 756 -2 654
Other operating expenses 9, 15, 29, 30 -1 897 -1 643
Share of net profit of joint ventures and associates 32 265 171
Net gain (loss) on sale of tangible assets
13
Operating expenses -4 278 -4 107
Operating profit before depreciation and impairment - EBITDA 2 078 2 105
Depreciation 4, 13 -1 030 -856
Impairment 4, 13 -412 -3 258
Operating profit - EBIT 636 -2 010
Finance income
10
Finance costs
10
-1 076 -1 065
Realised currency gain (loss) 10 -268 -635
Unrealised currency gain (loss) 10 -311 -1 112
Net change in unrealised gain (loss) on derivatives 10 40 -56
Net financial items -1 212 -2 797
Profit (loss) before taxes -576 -4 806
Tax income (cost) 11 -54 -153
Profit (loss) for the year -630 -4 959
Attributable to;
Non-controlling interest -23 -49
Controlling interest -607 -4 909
Earnings per share (NOK) 12 -1.92 -15.51
Diluted earnings per share (NOK) 12 -1.92 -15.51
Consolidated Statement of Comprehensive Income
Profit (loss) for the year -630 -4 959
Other comprehensive income, net of tax
Items that may be reclassified to profit or loss
Currency translation differences 40 604
Cash flow hedge
11, 26
Share of other comprehensive income of joint ventures and associates
32
Total 202 617
Items that not will be reclassified to profit or loss
Defined benefit plan actuarial gain (loss)
8
Total - -1
Total other comprehensive income for the year, net of tax 202 616
Total comprehensive income for the year net of tax -428 -4 343
Attributable to;
Non-controlling interest -23 -49
Controlling interest -405 -4 293
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financial statements / dof group
Consolidated Statement of Balance Sheet
Amounts in NOK million Note 31.12.2021 31.12.2020
Assets
Tangible assets 13, 15, 22 12 199 12 844
Deferred tax assets 11 11 12
Investments in joint ventures and associated companies 10, 32 2 730 2 336
Other non-current assets 16, 27 134 270
Total non-current assets 15 074 15 462
Trade receivables 17, 27 1 455 1 003
Other current assets 18, 26, 27 625 627
Current assets 2 080 1 630
Restricted deposits 145 183
Unrestricted cash and cash equivalents 1 652 1 697
Cash and cash equivalents
19, 27
Total current assets 3 877 3 510
Asset held for sale
Total current assets included asset held for sale 3 877 3 531
Total assets 18 951 18 993
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financial statements / dof group
Consolidated Statement of Balance Sheet
Kathryn M. Baker
Director
Storebø, 6
th
of April 2022
The Board of Directors of DOF ASA
Hans Olav Lindal
Chairman
Helge Singelstad
Deputy Chairman
Mons S. Aase
CEO
Marianne Møgster
Director
Amounts in NOK million Note 31.12.2021 31.12.2020
Equity and liabilities
Paid-in equity 20 316 309
Other equity -1 733 -1 321
Non-controlling interests 21 91 114
Total equity 20 -1 326 -898
Bond loan 22, 27 - -
Debt to credit institutions 15, 22, 27 - -
Lease liabilities 15 217 301
Other non-current liabilities 11, 23, 26, 27 38 62
Non-current liabilities 255 363
Current portion of debt 22, 27 18 692 18 301
Trade payables 24, 27 895 675
Other current liabilities 25, 26, 27 434 551
Current liabilities 20 021 19 528
Total liabilities
Total equity and liabilities
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financial statements / dof group
Consolidated Statement of Changes in Equity
Paid-in equity Other equity
Non-
controlling
interest
Total
equity
Amounts in NOK million
Share
capital
Share
premium
Paid-in
equity
Contributed
capital
Retained
earnings
Currency
translation
differences
Cash
flow
hedge
Total
other
equity
Balance at 01.01.2021
Profit (loss) for the year - -67 -67 - -539 - - -539 -23 -630
Other comprehensive income net of tax - - - - 115 40 48 202 - 202
Total comprehensive income for the year
-67 -67 - -425 40 48 -337 -23 -428
Converted bond 7 67 75 -75 - - - -75 - -
Changes in non-controlling interest - - - - - - - - - -
Total transactions 7 67 75 -75 - - - -75 - -
Balance at 31.12.2021 316 - 316 - -2 436 793 -91 -1 734 91 -1 326
Balance at 01.01.2020 308 2 887 3 194 87 48 206 -254 87 170 3 451
Profit (loss) for the year - -2 897 -2 897 - -2 012 - - -2 012 -49 -4 959
Other comprehensive income net of tax - - - - -48 547 116 616 - 616
Total comprehensive income for the year
-2 897 -2 897 - -2 059 547 116 -1 396 -49 -4 343
Converted bond 1 11 12 -12 - - - -12 - -
Changes in non-controlling interest - - - - - - - - -6 -6
Total transactions with owners 1 11 12 -12 - - - -12 -6 -6
Balance at 31.12.2020 309 - 309 75 -2 011 754 -139 -1 321 114 -898
Non-controlling interest
Please see note 21 for more information about non-controlling interest.
Convertible bond loan
The remaining part of the convertible bond loan is converted to shares in 2021.
58
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Consolidated Statement of Cash Flows
Amounts in NOK million Note 2021 2020
Operating profit 636 -2 010
Depreciation and impairment 13 1 442 4 115
Profit (loss) on disposal of tangible assets 13 -109 -13
Share of net income of joint ventures and associates 32 -265 -171
Change in trade receivables 17 -452 197
Change in trade payables 24 220 -84
Change in other working capital 5 -17
Exchange rate effect on operating activities 20 -4
Cash from operating activities 1 496 2 013
Interest received 40 34
Interest and other finance costs paid -280 -525
Tax paid -62 -78
Net cash from operating activities 1 194 1 445
Payments received for sale of tangible assets 13 172 19
Purchase of tangible assets 13 -612 -219
Purchase of contract costs -135 -80
Payment of acquisition, net of cash 26 -
Received dividends 1 -
Net cash flow from other non-current receivables 267 276
Net cash used in investing activities -280 -3
Proceeds from borrowings 22 7 230
Repayment of borrowings 22 -1 010 -654
Net cash flow from financing activities -1 003 -423
Net changes in cash and cash equivalents -89 1 018
Cash included restricted cash at the start of the period 19 1 880 1 395
Exchange gain (loss) on cash and cash equivalents 5 -533
Cash included restricted cash at the end of the period 19 1 797 1 880
Restricted cash amounts to NOK 145 million (NOK 183 million) and is included in the cash. Changes in restricted cash is reflected in the cash flow.
Restricted cash of NOK 335 million (NOK 145 million) has been presented net of debt to credit institutions and are included in the repayment of borrowings.
For further information, please see note 19 "Cash and cash equivalents".
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1 General 61
2 Summary of significant accounting principles 61
3 Financial risk management 68
4 Accounting estimates and assessments 70
5 Management reporting 73
6 Segment information 74
7 Operating revenue 75
8 Payroll expenses 76
9 Other operating expenses 76
10 Financial income and expenses 77
11 Tax 78
12 Earnings per share 80
13 Tangible assets 81
14 Contract cost 84
15 Leases 85
16 Non-current receivables 87
17 Trade receivable 87
18 Other current assets 88
19 Cash and cash equivalents 89
20 Share capital and share information 90
21 Non-controlling interest 91
22 Interest bearing debt 92
23 Other non-current liabilities 95
24 Trade payables 96
25 Other current liabilities 96
26 Hedging activities 96
27 Financial assets and liabilities:
Information on the balance sheet 98
28 Guarantee 99
29 Related parties 99
30 Remuneration to executives,
Board of Directors and auditor 100
31 Companies within the Group 101
32 Investments in jointly controlled companies
and associated companies 102
33 Significant acquisitions in the year 106
34 Contingencies 106
35 Subsequent events 107
36 Foreign exchange rates 107
Notes to the Consolidated Financial Statements
Note Page
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Notes to the Consolidated Financial Statements
1 General
The head oce is located at Storebø in the municipality of
Austevoll, Norway.
DOF is involved in business of industrial oshore activities as
owner and operator of modern oshore vessels.
companies, as specified in note 31.
The Group's activities comprise three segments, as specified
in note 6.
The Annual Accounts were approved for publication by the
Board of Directors on the 6
th
of April 2022. The financial report
is divided in the Group accounts and the parent company
account. The report starts with the Group accounts.
If not stated otherwise all amounts in the notes are in
NOK million.
2 Summary of significant accounting principles
The consolidated financial statements of the Group have
been prepared in accordance with International Financial
Reporting Standards as adopted by the EU.
The consolidated financial statements have been prepared in
accordance with the historical cost convention with the following
exceptions: financial instruments at fair value through profit
or loss and non-derivative instruments designated as heading
instruments are subsequently carried at fair value.
Going concern
The consolidated financial statements and the Parent Company’s
financial statement are prepared on the assumption of going
concern in accordance with IAS 1.25. The Group’s financial
position is not sustainable, and there is material uncertainty
related to going concern. Standstill agreements with the majority
of the Group’s lenders have continued since 2
nd
quarter 2020
and the current standstill agreements are applicable until 30
th
of April 2022. The restructuring proposals being discussed
with the secured lenders and bondholders includes soft terms
on the loan facilities and conversion of substantial amounts
of debt to equity which again will significantly dilute the
current holders of equity. The dialogue with the lenders is
constructive, but a refinancing solution is not yet in place.
The Group is dependent on continued standstill agreements
with its creditors until a long-term financial solution is agreed
to maintain as going concern.
If the Group cannot be treated as going concern the valuation
of the Group’s assets will be further revised and will result
in significant impairment of the Group’s assets.
Group consolidation principles
Subsidiaries are all entities over which the Group has control.
The Group controls an entity when the Group is exposed to,
or has rights to, variable returns from its involvement with
the entity and has the ability to aect those returns through
its power over the entity. Subsidiaries are fully consolidated
from the date on which control is transferred to the Group.
They are deconsolidated from the date that control ceases.
The Group applies the acquisition method for business
combinations. The consideration transferred for the acquisition
of a business is the fair values of the assets transferred, the
liabilities assumed, and the equity interests issued by the
Group. The consideration transferred includes the fair value of
any asset or liability resulting from a contingent consideration
arrangement. Identifiable assets acquired and liabilities and
contingent liabilities assumed in a business combination are
measured initially at their fair values at the acquisition date.
The Group recognises any non-controlling interest in the
acquiree on an acquisition-by-acquisition basis, either at
fair value or at the non-controlling interest’s proportionate
share of the recognised amounts of the acquiree’s identifiable
net assets.
Acquisition-related costs are expensed as incurred.
Any contingent consideration to be transferred by the
Group is recognised at fair value at the acquisition date.
Subsequent changes to the fair value of the contingent con-
sideration classified asset or liability is recognised in profit
or loss. Contingent consideration classified as equity is not
re-measured.
Goodwill is measured as the excess of consideration transferred
plus the amount of non-controlling interest and fair value of
any previously held equity interest less the fair value of the
identifiable net assets acquired in the business combination.
When this amount is negative, the dierences is recognised
in profit or loss.
Inter-company transactions, balances and unrealised gains
on transactions between Group companies are eliminated.
When necessary, amounts reported by subsidiaries have
been adjusted to conform to the Group’s accounting policies.
Transactions with non-controlling interests that do not result
in loss of control are accounted for as equity transactions –
that is, as transactions with the owners in their capacity as
owners. The dierence between fair value of any considera-
tion paid and the relevant share acquired of the carrying value
of net assets of the subsidiary is recorded in the consolidated
statement of changes in equity. Gains or losses on disposals
to non-controlling interests are also recorded in the consoli-
dated statement of changes in equity.
Joint arrangements and associates
Investments in jointly controlled companies are classified as
either joint operations or joint ventures depending on the con-
tractual rights and obligations for each investor. The Group
has assessed the nature of its jointly controlled companies
and determined them to be joint ventures. Joint ventures are
accounted for using the equity method of accounting.
Associates are all entities over which the Group has signif-
icant influence but not control, generally accompanying a
61
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shareholding of between 20% and 50% of the voting rights.
Investments in associates are accounted for using the equity
method of accounting.
Under the equity method of accounting, interests are initially
recognised at cost and adjusted thereafter to recognise the
Group's share of post-acquisition profit or loss and movements
in other comprehensive income. When the Group's share of
losses equals or exceeds its interest in the investee (which
includes any long-term interests that, in substance, form part
of the Group's net investments in the investee), the Group
does not recognise further losses, unless it has incurred obli-
gations or made payments on behalf of the investee.
Unrealised gains on transactions between the Group and its
investee are eliminated to the extent of the Group's interest
in the investee. Unrealised losses are also eliminated unless
the transaction provides evidence of an impairment of the
asset transferred.
If the ownership interest in an investee is reduced but signif-
icant influence is retained, only a proportionate share of the
amounts previously recognised in other comprehensive income
is reclassified to profit or loss where appropriate.
The Group determines at each reporting date whether there
is any objective evidence that the investment in the investee
has been impaired. If this is the case, the Group calculates
the amount of impairment as the dierence between the
recoverable amount of the investee and its carrying value,
recognising the amount in ‘share of income of associates and
joint ventures’ in the profit or loss.
Accounting policies of the joint ventures have been changed
where necessary to ensure consistency with the policies
adopted by the Group.
Segment reporting
The Group’s reporting format is determined by business segment
which is regularly reviewed by the chief operating decision maker
to assess performance and to be able to allocate resources. DOF
ASA’s Board of Directors is the Groups chief operating decision
maker. The Group operates within three business segments:
1) PSV (Platform Supply vessel)
2) AHTS (Anchor Handling Tug Supply Vessel)
3) Subsea (Subsea vessel and subsea engineering)
The segment reporting is presented according to internal
management reporting, based on the proportionate consolidation
method of accounting for joint ventures. The bridge between
the management reporting and the figures reported in the
financial statements is presented in the note 5.
Conversion of foreign currency
a) Foreign currency
Items included in the financial statements of each of the
Group’s entities are measured using the currency of the
primary economic environment in which the entity operates
(‘the functional currency’). The functional currency is mainly
NOK, USD, BRL, GBP and AUD. The consolidated financial
statements are presented in Norwegian Kroner (NOK).
b) Transactions and balances
Foreign currency transactions are translated into the func-
tional currency using the exchange rates prevailing at the
transaction date. Foreign exchange gains and losses resulting
from the settlement of such transactions are presented as
realised currency gain/loss under financial items. Similarly,
the conversion at year-end exchange rates of monetary assets
and liabilities denominated in foreign currencies are recog-
nised as unrealised currency gain/loss.
c) Group companies
Group entities that have a functional currency which diers
from the Group’s presentation currency are converted into
the presentation currency as follows:
I.
assets and liabilities are converted to the presentation
currency at the foreign exchange rate at the end of the
reporting period,
II.
income and expenses are converted using the average rate
of exchange, and
III.
all resulting exchange dierences are recognised in other
comprehensive income and specified separately in the
consolidated statement of changes in equity.
When the entire interest in a foreign entity is disposed of or
control is lost, the cumulative exchange dierences relating
to that foreign entity are reclassified to profit or loss.
Classification of assets and liabilities
Assets are classified as current assets when:
• the asset forms part of the entity’s service cycle, and is
expected to be realised or consumed over the course of
the entity’s normal operations; or
• the asset is held for trading; or
• the asset is expected to be realised within 12 months after
the reporting period.
All other assets are classified as non-current assets.
Liabilities are classified as current when:
• the liability forms part of the entity’s service cycle, and is
expected to be settled in the course of normal production
time; or
• the liability is held for trading; or
• settlement of the liability has been agreed upon within 12
months after the reporting period; or
•
the entity does not have an unconditional right to postpone
settlement of the liability until at least 12 months after the
reporting period.
All other liabilities are classified as non-current liabilities.
Cash and cash equivalents
Cash and cash equivalents include cash on hand and deposits
held at call with banks. Restricted deposits are classified sep-
arately from unrestricted bank deposits under cash and cash
equivalents. Restricted deposits include deposits with restric-
tions exceeding twelve months.
Trade receivables
Trade receivables are amounts due from customers for
services performed in the ordinary course of business and
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dof integrated annual report 2021
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classified as current assets. In addition to invoiced amounts,
trade receivable also includes accrued, not invoiced revenues
when the amounts are independent of future performance.
Accrued revenue under lump sum contracts are normally
classified as contract assets. These are presented together
with trade receivables and specified in the notes.
Trade receivable for which there are no significant financing
component are recognised at nominal amounts less expected credit
losses. The Group applies the simplified approach to measuring
expected credit losses which uses a lifetime expected loss allowance
for all trade receivable and accrued, not invoiced revenue.
Tangible Assets and contract costs
Tangible assets are recognised at cost less accumulated
depreciation and accumulated impairment losses. The cost
of tangible asset comprises its purchase price, borrowing
costs and any directly attributable costs of bringing the
asset to its operating condition. If significant, the total
expenditure is separated into components which have
dierent expected useful lives.
Depreciation is calculated on a straight-line basis over the
useful life of the asset. Depreciable amount equals histor-
ical cost less residual value.
Depreciation commences when the asset is ready for its
intended use. The useful life of tangible asset and the
depreciation method are reviewed periodically in order
to ensure that the method and period of depreciation are
consistent with the expected pattern of financial benefits
expected to be derived from the assets.
When tangible assets are sold or retired, their cost and
accumulated depreciation and accumulated impairment
loss are derecognised and any gain or loss resulting from
their disposal is included in profit or loss.
For vessels, residual value is determined based on the estimated
fair value today as if the asset was at the end of its useful
life. The Group’s accounting policy for residual values vessels
in the PSV, AHTS and Subsea segments are described in note
4 ‘Accounting estimates and assessment’.
Assets under construction
Assets under construction are capitalised as tangible assets
during construction as instalments are due to the yard. Building
costs include contractual costs and costs related to monitoring
the project during the construction period. Borrowing costs
are added to the cost of those vessels. The capitalisation of
borrowing costs ceases when the vessel is substantially ready
for their intended use. Assets under construction are not depre-
ciated before the tangible asset is ready for its intended use.
Impairment of assets
All assets are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount
of an asset may not be recoverable. Whenever the carrying
amount of an asset exceeds its recoverable amount, an impair-
ment loss is recognised.
The recoverable amount is the higher of an asset’s net selling
price and value in use. Where there are circumstances and
evidence that impairment losses recognised previously no
longer exists or has decreased, a reversal of the impairment
loss is recognised, except for goodwill. For further informa-
tion on the calculation see note 4 ‘Accounting estimates
and assessments’.
Periodic maintenance
Periodic maintenance is related to major inspections and
overhaul costs which occur at regular intervals over the life of
an asset. The expenditure is capitalised and depreciated until
the vessel enters the next periodical maintenance. When new
vessels are acquired, a portion of the cost price is classified
as periodic maintenance based on best estimates.
Ordinary repairs and maintenance costs of assets are expensed
as incurred.
Contract costs
Cost of obtaining a contract with customer and costs related
to mobilisation of vessel, equipment and personnel are cap-
italised and amortised in line with the satisfaction of the
performance obligation. These costs are defined as contract
costs. Contract period is based on best estimates taken into
consideration the initial agreed period with probability for
options periods. A probability judgement is performed in
assessing whether the option period shall be included in the
contract period. Contract costs are classified and presented
as other non-current assets. For further information about
contract costs, refer to ‘Revenue recognition’.
Leases
Where assets are financed through finance leases, under
which substantially all the risks and rewards of ownership
are transferred to the Group, the assets are treated as if
they had been purchased outright. The amount included
in the cost of tangible assets represents the aggregate of
the capital elements payable during the lease. The corre-
sponding obligation, reduced by the appropriate proportion
of lease or hire purchase payments made, is included in
borrowings. The amount included in the cost of property,
plant and equipment is depreciated on the basis described
in the preceding paragraphs and the interest element of
lease payments made is included in interest expense in the
profit or loss statement.
Operational lease requires recognition of an asset (the right
to use the leased item) and a financial liability representing
its obligation to make lease payments. The Group has elected
not to recognise right-of-use assets and lease liabilities for:
•
short-term leases that have a lease term of 12 months or less
• leases of low-value assets
• intangible assets
Non-lease components within lease contracts will be accounted
for separately for all underlying classes of assets and reflected
in the relevant expense category as incurred.
Leases in which a significant portion of the risks and rewards
of ownership were not transferred to the Group as lessee were
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dof integrated annual report 2021
financial statements / dof group
classified as operating leases. Payments made under operating
leases (net of any incentives received from the lessor) were
charged to profit or loss on a straight-line basis over the
period of the lease.
Lease income from operating leases where the Group is a lessor
is recognised in income on a straightline basis over the lease
term. Initial direct costs incurred in obtaining an operating
lease are added to the carrying amount of the underlying
asset and recognised as expense over the lease term on the
same basis as lease income. The respective leased assets are
included in the balance sheet based on their nature.
Goodwill
Goodwill is measured as the excess of consideration trans-
ferred plus the amount of non-controlling interest and fair
value of any previously held equity interest less the fair
value of the identifiable net assets acquired in the business
combination. When the amount is negative, the dierence
is recognised in profit or loss. Goodwill comprises the dif-
ference between nominal and discounted amounts in terms
of deferred tax, synergy eects, organisational value and key
personnel and their expertise.
Goodwill is reviewed for impairment whenever events or
changes in circumstances indicate that the carrying amount
of goodwill may not be recoverable. Impairment losses on
goodwill are not reversed.
Gains and losses on the disposal of an entity include the
carrying amount of goodwill relating to the entity sold.
Debt
Debt is recognised initially at fair value, net of transaction
costs incurred. Debt is subsequently carried at amortised
cost; any dierence between the proceeds (net of transac-
tion costs) and the redemption value is recognised in the
profit or loss over the period of the borrowings using the
eective interest method.
Fees paid on the establishment of debt are recognised as
transaction costs of the loan to the extent that it is probable
that some or all the facility will be drawn down. In this case,
the fee is deferred until the draw-down occurs. To the extent
there is no evidence that it is probable that some or all the
facility will be drawn down, the fee is capitalised as a pre-pay-
ment for liquidity services and amortised over the period of
the facility to which it relates.
Interest expenses related to the borrowing are recognised
as part of cost of an asset when the borrowing costs accrue
during the construction period of a qualifying asset.
Debt is classified as current liability unless the borrowing
involves an unconditional right to postpone payment of the
liabilities for more than 12 months from the reporting period.
The current portion of such debt includes undiscounted instal-
ments due within the next 12 months.
Provisions
Provisions are recognised when, and only when, the Group
faces an obligation (legal or constructive) as a result of a past
event and it is probable (more than 50%) that a settlement
will be required and a reliable estimate can be made of the
obligation amount.
For onerous contracts provisions are made when unavoidable
cost of meeting the obligations under the contract exceed the
economic benefit to be received under the contract. The una-
voidable costs under the contract are the lower of the cost
of fulfilling the contract and any compensation or penalties
arising from failure to fulfil the contract. From 01.01.2022 the
Group will adopt changes in IFRS and increase the cost base
by including both direct cost and indirect cost in the calcu-
lation of “unavoidable cost”.
Provisions are reviewed at the end of each reporting period
and adjusted to the best estimate. The best estimate of the
expenditure required to settle the present obligation is the
amount that rationally will have to be paid, to settle the
obligation at the consolidated statement of the balance sheet
date or to transfer it to a third party at that time. When
timing is significant for the amount of the obligation, it
is measured at its present value. Subsequent increases in
the amount of the obligation due to interest accretion are
reported as interest costs.
Contingent assets and liabilities:
Contingent assets are not recognised in the accounts but are
disclosed in the notes to the accounts if there is a certain
degree of probability that the Group will benefit economically.
Contingent liabilities are defined as:
• possible liabilities resulting from past events, but where
their existence relies on future events;
• liabilities which are not reported on the accounts because
it is improbable that the commitment will result in an
outflow of resources;
• liabilities which cannot be measured to a sucient degree
of reliability.
Contingent liabilities are not reported in the accounts, with
the exception of contingent liabilities which originate from
business combinations. Significant contingent liabilities are
presented in the notes to the accounts, except for contingent
liabilities with a very low probability of settlement.
Equity
Ordinary shares are classified as equity.
Transaction costs related to equity transactions, including tax
eect of transaction costs, are recognised directly in equity.
Transactions with non-controlling interests
The Group treats transactions with non-controlling interests as
transactions with equity owners of the Group. For purchases
from non-controlling interests, the dierence between any
consideration paid and the relevant share acquired of the
carrying value of the non-controlling interests is recorded in
consolidated statement of changes in equity. Gains or losses
on disposals to non-controlling interests are also recorded in
consolidated statement of changes in equity.
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Revenue recognition
The Group recognises income in line with the transfer of
promised goods or services to customers in an amount that
reflects the consideration to which the Group expects to be
entitled in exchange for those goods or services. Operating
revenue is shown net of discounts, value-added tax and
other taxes on gross rates.
a) Day rate contracts
A day rate contract is a contract where the Group is remu-
nerated by the customer at an agreed daily rate for each day
of use of the vessel, equipment, crew and other resources
and service utilised on the contract. Such contracts may also
include certain lump sum payments.
Under long-term chartering the Group delivers a vessel,
including crew, to a client. The charterer determines, within
the contractual limits, how the vessel is to be utilised. Under
subsea/IMR Projects the Group utilises its vessels, equipment,
crew and the onshore project organisation to perform tailor
made services on the client’s installations and/or assets.
The right to use the vessel fall in under the scope of IFRS
16 ‘Leases’, and revenue is recognised over the lease period
on a straight-line basis.
Distinct service components in a contract are accounted
for separately from other promises in the contract. Where
the contracts include multiple performance obligations, the
transaction price is allocated to each performance obligation
based on the stand-alone selling prices. Revenue is recognised
over time as the services are provided. The stage of comple-
tion for determining the amount of revenue to recognise is
assessed based on input or an output method. The method
applied is the one that most faithfully depicts the Group’s
progress
towards complete satisfaction of the performance obli-
gation. Progress
is usually measured based on output methods
such as days.
The Group does not recognise revenue during periods when
the underlying vessel is o-hire. In contracts where the
Group is remunerated for maintenance days the revenue is
recognised over the contract period. The maintenance days
are recognised as receivables and invoiced during the o-hire.
Costs incurred relating to future performance obligations
are deferred and recognised as assets in the consolidated
statement of balance sheet. The costs incurred will be expensed
in line with the satisfaction of the performance obligation.
b) Lump sum contracts
A lump sum contract is a contract where the Group is remu-
nerated by the client to a fixed price which is deemed to
include the Group’s costs, profit and contingency allowances
for risks. Any over-run of costs experienced by the Group is
for the Group’s account, unless specifically agreed with the
client in the contract.
For lump sum projects, contract revenue and expenses are rec-
ognised over time in accordance with the stage of completion
of a contract. The stage of completion is calculated by dividing
contract costs incurred to date by total estimated contract costs.
Revenue is recognised in line with the stage of completion.
The method relies on the Group’s ability to estimate future
costs in an accurate manner over the remaining life of a
project. The process requires judgement, and changes to
estimates or unexpected costs resulting in fluctuations in
revenue and probability. Cost forecasts are reviewed on a
continuous basis and the project accounts are updated in a
monthly project manager’s report as a result of these reviews.
The reviews monitor actual cost of work performed project
to date, the estimate cost to complete and the estimate cost
at completion. This enables a reliable estimate for the likely
outcome in terms of profitability of each project.
As contract revenue, costs and the resulting profit are rec-
ognised as the work is performed, costs incurred relating to
future activities are deferred and recognised as an asset in
the consolidated statement of financial position. Conversely,
where revenue is received in advance of costs being incurred,
a deferred liability is recognised in the consolidated statement
of balance sheet.
Where the outcome of a project cannot be reliably measured,
revenue will be recognised only to the extent that costs are
recoverable. Where it is probable that contract costs will not
be recovered, it is only costs incurred that are recognised in
the consolidated statement of comprehensive income.
c) Contract cost
Cost incurred relating to future performance obligations are
deferred and recognised as assets in the consolidated statement
of balance sheet. The nature of the asset is incremental cost
of obtaining a contract and will be recovered by the revenue
over the contract period. Costs related to contract and future
performance obligation longer that 12 months are classified
and presented as other non-current assets. All other costs
for future performance are presented as other current assets.
Contract costs incurred will be expensed and presented as
operational expenses in line with the satisfaction of the per-
formance obligation.
d) Variation orders
Additional contract revenue arising from variation orders is
recognised when it is probable that the client will approve
the variation and the amount of revenue arising from the
variation can be reliably measured.
e) Mobilisation
In contracts where the Group is remunerated for mobilisation
or demobilisation of vessel the remuneration is classified as
prepayment and amortised over the contract time.
f) Dividend income
Dividend income is recognised when the right to receive
payment is established.
g) Interest income
Interest income is recognised using the eective interest method.
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Current and deferred income tax
The current income tax charge is calculated on the basis of
the tax laws enacted or substantively enacted at the end of
the reporting date in the countries where the Company’s
subsidiaries and associated companies operate and generate
taxable income. Permanent establishment of the operation
will be dependent of the Group’s vessels amount operating
in the period. Tax is calculated in accordance with the legal
framework in those countries in which the Group’s subsidiaries,
associated companies or vessels with permanent establishment
operate and generate taxable income.
The Group periodically evaluates positions taken in tax returns
with respect to situations in which applicable tax regulation
is subject to interpretation and establishes provisions for
uncertain tax positions where appropriate on the basis of
amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability
method, on temporary dierences arising between the tax
bases of assets and liabilities and their carrying amounts in
the consolidated accounts. Deferred income tax is determined
using tax rates (and laws) that have been enacted or substan-
tially enacted by the balance sheet date and are expected to
apply when the related deferred income tax asset is realised
or the deferred income tax liability is settled, see note 11 ‘Tax’.
Deferred income tax assets are recognised on the balance
sheet to the extent it is probable that the future taxable
profit will be available against which the temporary dier-
ences can be utilised.
Deferred tax is calculated on the basis of temporary dierences
related to investments in subsidiaries and associated companies,
except when the Company has control of the timing of the
reversal of the temporary dierences, and it is probable that
reversal will not take place in the foreseeable future.
Both tax payable and deferred tax are recognised directly in
equity, to the extent they relate to items recognised directly
in equity. Similarly, any tax related to items reported as
other comprehensive income is presented together with the
underlying item.
Companies under the shipping tonnage tax regime
The Group is organised in compliance with the tax regime
for shipping companies in Norway. This scheme entails no
tax on profits or tax on dividends from companies within
the scheme. Net finance, allowed for some special regula-
tions, will continue to be taxed on an ongoing basis. In
addition, tonnage tax is payable, which is determined based
on the vessel’s net weight. This tonnage tax is presented as
an operating expense.
Employee benefits
The Group operates various post-employment schemes, including
both defined benefit and defined contribution pension plans.
(a) Defined contribution plans
For defined contribution plans, the Group pays contributions
to publicly or privately administered pension insurance plans
on a mandatory, contractual or voluntary basis. The Group
has no legal or constructive obligations to pay further con-
tributions if the fund does not hold sucient assets to pay
all employees the benefits relating to employee service in
the current and prior periods.
The contributions are recognised as employee benefit expense
when they are due. Prepaid contributions are recognised as
an asset to the extent that a cash refund or a reduction in
the future payments is available.
(b) Defined benefit plans
A defined benefit plan is a pension plan that is not a defined
contribution plan. Typically, defined benefit plans define an
amount of pension benefit that an employee will receive on
retirement, usually dependent on one or more factors such
as age, years of service and compensation.
The liability recognised in the balance sheet in respect of
defined benefit pension plans is the present value of the defined
benefit obligation at the end of the reporting period less the
fair value of plan assets. The defined benefit obligation is cal-
culated annually by independent actuaries using the projected
unit credit method. The present value of the defined benefit
obligation is determined by discounting the estimated future
cash outflows using interest rates of high-quality corporate
bonds that are denominated in the currency in which the
benefits will be paid, and that have terms to maturity approx-
imating to the terms of the related pension obligation.
Actuarial gains and losses arising from experience adjust-
ments and changes in actuarial assumptions are charged or
credited to equity through other comprehensive income in
the period in which they arise.
Past-service costs are recognised immediately in the income
statement.
Financial assets
The Group classifies its financial assets in the following
categories: fair value through other comprehensive income
(FVOCI), fair value through profit and loss (FVTPL), and
amortised cost. The classification of financial assets under
IFRS 9 is generally based on the business model in which a
financial instrument is managed and its contractual cash flow
characteristics.
Classification of financial assets is determined at
initial recognition and is not reclassified subsequently unless the
Group changes its business model for managing financial assets.
A financial asset shall be measured at amortised cost if both
of the following conditions are met and it is not designated
at FVTPL:
* the financial asset is held within a business model whose
objective is to hold financial assets in order to collect
contractual cash flows and
* the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
A financial asset shall be measured at FVOCI if both of the
following conditions are met and it is not designated at FVTPL:
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* the financial asset is held within a business model whose
objective is achieved by both collecting contractual cash
flows and selling financial assets and
* the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
All financial assets not classified as measured at amortised cost
or FVOCI as described above are measured at FVTPL. This
includes all derivative financial assets (see note 27). On initial
recognition, the Group may irrevocably designate a financial
asset that otherwise meets the requirements to be measured
at amortised cost or at FVOCI as at FVTPL if doing so elim-
inates or significantly reduces an accounting mismatch that
would otherwise arise.
In assessing whether the contractual cash flows are solely
payments of principal and interest, the Group considers the
contractual terms of the instrument. This includes assessing
whether the financial asset contains a contractual term that
could change the timing or amount of contractual cash flows
such that it would not meet this condition. In making this
assessment, the Group considers:
* contingent events that would change the amount or timing
of cash flows;
*
terms that may adjust the contractual coupon rate, including
variable-rate features;
* prepayment and extension features; and
* terms that limit the Group’s claim to cash flows from
specified assets.
a) Financial assets at FVTPL
The assets are subsequently measured at fair value. Net gains
and losses, including any interest or dividend income, are rec-
ognised in profit or loss. However, see note 26, for derivatives
designated as hedging instruments.
b) Financial assets at amortised cost
These assets are subsequently measured at amortised cost
using the eective interest method. The amortised cost
is reduced by impairment losses. Interest income, foreign
exchange gains and losses and impairment are recognised
in profit or loss. Any gain or loss on derecognition is rec-
ognised in profit or loss.
c) Equity investments at FVOCI
These assets are subsequently measured at fair value. Dividends
are recognised as income in profit or loss unless the dividend
clearly represents a recovery of part of the cost of the invest-
ment. Other net gains and losses are recognised in OCI and
are never reclassified to profit or loss.
d) Derecognition
Financial assets are derecognised when the rights to receive
cash flows from the investments have expired or have been
transferred and the Group has transferred substantially all
risks and rewards of ownership.
e) Impairment
The Group assesses at the end of each reporting period
the expected credit losses for a financial asset or a group
of financial assets. See the separate paragraph in this note
regarding trade receivables.
Derivative financial instruments and hedging activities
Derivatives are initially recognised at fair value on the date
a derivative contract is entered into and are subsequently
remeasured on a continuous basis at fair value. The method
of recognising the resulting gain or loss depends on whether
the derivative is designated as a hedging instrument, and if so,
the nature of the item being hedged. The Group has various
types of hedging relationships that are not documented as hedge
accounting and measured at fair value with the resulting gain
or loss recognised immediately in the profit or loss.
The whole carrying amount of a hedging derivative is clas-
sified as a non-current asset or liability when the remaining
maturity of the hedged item is more than 12 months, and
as a current asset or liability when the remaining maturity
is less than 12 months. Trading derivatives are classified as
a current asset or liability.
The fair values of various derivative instruments used for
hedging purposes are disclosed in note 26 ‘Hedging activities’.
Hedge accounting
The Group applies hedge accounting hedging of USD/BRL
spot exchange rate risk arising from highly probable income
denominated in USD.
Movements on the hedging reserve are shown in the consol-
idated statement of changes in equity and also recognised in
other comprehensive income, and the carrying amount of the
hedging instrument, net present value of the hedged items,
the eective portion of the cash flow hedges and the gain
(losses) on hedges are disclosed in note 26 ‘Hedging activities’.
At the inception of the transaction, the Group documents the
relationship between hedging instruments and hedged items,
as well as its risk management objectives and strategy for
undertaking various hedging transactions. The Group also
documents its assessment, both at hedge inception and on
an ongoing basis, of whether the hedging instruments that
are used in hedging transactions are highly eective in o-
setting changes in fair values or cash flows of hedged items.
The eective portion of changes in the fair value of hedging
instruments that are designated and qualify as cash flow
hedges is recognised in other comprehensive income. The
gain or loss relating to the ineective portion is recognised
immediately in the income statement.
When the hedge no longer meets the criteria for hedge account-
ing, any cumulative gain or loss existing in equity at that
time remains in equity and is reclassified when the forecast
transaction is ultimately recognised in profit or loss. When a
forecast transaction is no longer expected to occur, the cumu-
lative gain or loss that was reported in equity is immediately
reclassified to profit or loss.
Subsequent events
New information and other events that provide evidence
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of conditions that existed at end of the reporting period is
included in the accounts. Events occurring after the reporting
period, which do not impact the Group’s financial position,
but which have a significant impact on future periods, are
disclosed in the notes to the accounts.
Use of estimates
The preparation of financial statements in conformity with
IFRS requires the use of certain critical accounting estimates.
It also requires management to exercise its judgment in the
process of applying the Group’s accounting policies. The
areas involving higher degree of judgment or complexity,
or areas where assumptions and estimates are significant to
the consolidated financial statements are disclosed in note 4.
Changes in accounting estimates are recognised in profit or
loss for the period in which they occurred. If the changes
also apply to future periods, the eect of the change is dis-
tributed over current and future periods.
Consolidated statement of cash flows
The statement of cash flows is prepared in accordance with
the indirect model.
Government grants
The Group recognises grants when it is reasonably secured
that it will comply with the required conditions for the grant
and the grant will be received. The Group receive grants
related to the net salary scheme for crew onboard the vessel.
These government grants are presented as a deduction in
the Payroll expenses in the profit or loss.
New standards, amendments and interpretations
adopted by the Group
No new standards, amendments or interpretations have been
adopted by the Group in 2021.
New standards, amendments and interpretations not
yet adopted
Amendments to IAS 37 - Onerous Contracts - Cost of
Fulfilling a Contract
IAS 37 Provisions Contingent Liabilities and Contingent
Assets did not specify which costs to include in estimating
the cost of fulfilling a contract for the purpose of assessing
whether that contract is onerous.
The International Accounting Standards Board developed
amendments to IAS 37 to clarify that for the purpose of
assessing whether a contract is onerous, the cost of ful-
filling the contract includes both the incremental costs of
fulfilling that contract and an allocation of other costs that
relate directly to fulfilling contracts.
From 01.01.2022 the Group will adopt changes in IFRS and
increase the cost base by including both incremental costs
and an allocation of other costs that relate directly to ful-
filling contracts. The accounting policy for 2021 has been
to only include incremental costs.
Other new standards and amendments mandatory for annual
reporting periods after 31
st
of December 2021 is expected to
not be significant for the Group.
3 Financial risk management
Financial risk factors
The Group is exposed to various types of financial risk
relating to its ongoing business operations: Market risk
(including foreign exchange risk, interest rate risk and price
risk), credit -and liquidity risk, capital structure risk and tax
risk. The Group’s overall risk management seeks to minimise
potential adverse eects of the Group’s financial performance.
The Group has had a policy to partly hedge interest rate risk
and foreign exchange risk, however the financial situation
limits the Group in this respect. This will increase the
interest risk and foreign exchange risk going forward.
Market risk
Foreign exchange risk
The Group operates globally and is exposed to foreign exchange
risk arising from various currency exposures, mainly with
respect to USD, BRL, AUD, CAD, EUR and GBP. The Group’s
presentation currency is NOK. Foreign exchange risk arises
when future commercial transactions, contractual obligations
(assets), liabilities and investments are in dierent currencies
than the presentation currency. The Group aims to achieve a
natural hedge between cash inflows and cash outflows to secure
the debt funding in equivalent currency as the committed
earnings from the charter contracts, and further to manage
the remaining foreign exchange risk arising from commercial
transactions, through forward contracts and similar instruments
as appropriate. However, due to the current financial position
for the Group, new forward contracts have become more
challenging. Hence, the Group's liquidity risk has increased.
Hedging of foreign exchange exposure is evaluated on a net
basis. The Group used hedge accounting up to year-end 2019
for parts of the revenues (in Brazil) with the objective to
reduce the volatility in operational and financial result due to
foreign exchange risk. The hedge was considered ineective
at 31
st
of December 2019 and the ineective portion (loss)
was recognised in the finance result. Remaining hedge rec-
ognised as other comprehensive income will be circulated to
the profit or loss account over the remaining hedge period.
See note 26 'Hedging activities'.
Foreign exchange rate changes in receivables, liabilities
and currency swaps are recognised as a financial income/
expense in the profit and loss statement. Fluctuation in
foreign exchange rates will therefore have an eect on the
future results and balances.
The Group has a significant amount of liabilities denominated
in USD. In conducting the foreign exchange rate sensitivity
analysis, a hypothetical change in exchange rates of 10%, 20%
and 30% against NOK has been used. Included in ‘Liabilities’
below are USD debt to financial institutions and bondholders,
and CAD debt to financial institutions. The Group’s has subsidi-
aries with USD debt, where the subsidiary’s functional currency
is BRL. The eect of change in BRL to USD is included in the
sensitivity analysis below. As the Group has a material invest-
ment in a joint venture company which has USD as functional
currency, this is included in the sensitivity analysis.
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Appreciation
10% 20% 30%
Liabilities in currency 1 101 2 202 3 304
Investment in joint ventures -272 -545 -817
Net effect 829 1 657 2 487
Currency eects on other liabilities are not included in the above
sensitivity analysis. A significant portion of the Group’s operating
income is denominated in USD. A depreciation of NOK against
USD will over a longer period have a positive impact on the
Group's future earnings and cash in NOK. Current receivables
and liabilities excluding bonds and debt to credit institutions
are often in the same currency and are normally due within
30 - 60 days. Over the last year the Group has experienced that
payment terms on some receivables have been extended. After
the balance sheet date, a NOK loan of 1,329 million has been
converted to USD. The sensitivity analyses above will be aected
by the conversion. Conversion of loan in NOK to loan in USD
will better hedge the cash inflow and outflow for the Group.
Interests rate risk
The Group’s existing debt arrangements are both at floating and
fixed interest rates. Movements in interest rates will have eects
on the Group’s cash flow and financial condition. The Group’s
policy is to maintain parts of its debt at fixed interest rates.
In addition to fixed interest loans, the Group manages its cash
flow interest risk by using floating-to-fixed interest rate swaps.
Such interest swaps have the economic eect of conversion from
floating interest rates to fixed interest rates. Through interest
rate swaps, the Group agrees with other parties to exchange,
at specified intervals the dierence between fixed interest rates
and floating interest rates calculated by reference to the agreed
amounts. Due to the Group's financial position the banks are
reluctant to enter into any interest rate swap contracts and the
Group's exposure to volatility in interest rates has increased.
The long-term funding of the Group’s vessels built in Brazil
are mainly secured at fixed interest rates for the entire
duration of the loans. The portion of debt secured with
fixed rate of interest is 52% per year-end and this includes
financing via BNDES and GIEK/Export Credit Norway.
The Group has an interest risk in the change in value for
the interest rates swaps. In accordance with IFRS, the
Group provides information about the potential risk with
a sensitivity analysis. The table below shows the change in
Mark-to-market (MTM) on interest rate swaps at year-end
with an increase and decrease of 100bps in 2021.
+ 100BPS - 100BPS
Amounts in NOK million
NOK NOK
Interest rate swaps 10 -9
Price risk
The Group is exposed to price risk at two main levels:
• The demand for the Group’s vessels is sensitive to chang-
es in the oil industry, for example oil price movements,
exploration and general activity level within the oshore
energy industry. This aects both the pricing and the
utilisation of the Group’s assets.
• The costs of construction of new assets and replacements
of assets are sensitive to changes in market prices.
The Group attempts to reduce price risk by long-term contracts
and frame agreements with key suppliers.
The Group is exposed to market fluctuations which may
result in lower utilisation and reduced earnings for the
Group’s vessels and services. Attempts are made to reduce
this risk by entering into contracts that secure long-term
charters for the main portion of the fleet. The markets in
2021 have continued to be challenging which has negatively
impacted the earnings and utilisation of the Group’s fleet.
There are signs of improved markets but the Group has
several contracts up for renewal in 2022, hence the price
risk is applicable.
Credit and Liquidity risk
Credit and liquidity risk arise from cash and cash equiv-
alents, derivatives, financial instruments and deposit with
banks as well as payment terms towards clients and suppliers.
Liquidity risk management implies maintaining sucient cash
and marketable securities, and to maintain available funding
through committed credit facilities. The Group has a policy
of limiting the credit exposure to any single financial institu-
tion and bank, and actively manages its exposure in order to
achieve this. To have available liquidity in all subsidiaries at
all times is challenging due to the current market conditions.
The Group’s counterparty credit risk has historically been low
as the Group’s customers traditionally have had good financial
capability to meet their obligations and have had high credit
ratings. The sustained challenging market situation has resulted
in changes to the credit ratings for some of the Group's
customers, and thereby increased the credit risk. Historically,
the portion of receivables not being collectable has been low.
Revenue from the 10 largest customers, large oil companies
and operators, represent approximately 74% of the Group's
revenue, whereof Petrobras represent the largest customer.
Liquidity risk management implies maintaining sucient
cash, marketable securities, available funding through
committed and uncommitted credit facilities and ability
to close market positions.
The standstill agreements and the short-term liquidity loan
o NOK 100 million drawn in 2020, covers the Group's short-
term liquidity needs. The Group is dependent on extension
of the existing standstill agreements until a long-term refi-
nancing solution has been agreed.
The Group has routines to weekly report cash flow forecasts
in order to monitor the Group's future cash position.
Depreciation
10% 20% 30%
Liabilities in currency -1 101 -2 202 -3 304
Investment in joint ventures 272 545 817
Net effect -829 -1 657 -2 487
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Capital structure and equity
The restructuring of the Group’s long-term debt is ongoing
and standstill agreements have been agreed until the 30
th
of
April 2022 with 91% of the secured lenders within the DOF
ASA and DOF Rederi AS and with 95% of the secured lenders
within the DOF Subsea Group. In Norskan Oshore Ltda, a
standstill agreement has been agreed for the facilities with the
international banks. The BNDES facilities have been served
according to refinancing agreements signed in February 2020,
which is also applicable for one facility in DOF Subsea Brasil
Ltda. The DOF Subsea standstill agreements assume payment
of principal and interest of a NOK 100 million credit facility
provided by certain lenders in March 2020. The outstanding
amount of this facility was NOK 47 million by year-end. The
relevant Group companies have imposed unilateral standstill
to the secured lenders not participating in the standstill agree-
ments. One of the DOF Subsea secured lenders has previously
requested repayment of approximately USD 47 million and in
the 3
rd
quarter 2021 this facility was prepaid at a significant
discount. Another secured lender has enforced an account
pledge for one loan facility in DOF Subsea.
The ad hoc group of bondholders in DOFSUB07, DOFSUB08
and DOFSUB09 have accepted to extend the standstill until
the 30 April 2022 in accordance with the resolutions of the
bondholders' meeting held 28 February 2022. The DOFCON
JV is not part of the standstill agreements and serves its
debt according to the terms in the relevant loans facilities.
The Company is guarantor for the debt in Iceman AS of NOK
444 million, where approximately 50% of the DOF guarantee
has been counter guaranteed by other shareholders in Iceman
AS. As part of the restructuring of the Group the main share-
holders and the lenders have signed an agreement on the
counter guarantees which has resulted in that the Company
has become the majority shareholder of Iceman AS, hence
this company was fully consolidated from 3
rd
quarter 2021. A
refinancing of Iceman is yet to come in place and the current
standstill agreement is applicable until the 30
th
of April 2022.
The DOFCON JV is not part of the standstill agreements and
serves its debt according to the terms in the relevant loan
facilities. Financial covenants related to DOF Subsea AS`s 50%
guarantee of the DOFCON loan facilities have been waived.
The Group’s financial position is not sustainable, and a
long-term financial solution is necessary to continue as going
concern. Due to the ongoing debt restructuring of the Group,
the vast majority of the Group’s secured and unsecured debt
has in accordance with IFRS, been classified as current debt
as per 31
st
of December 2021. This classification is based on
that standstill agreements for debt service with the banks and
bondholders are less than 12 months. The Group is dependent
on a robust refinancing solution and the refinancing proposal
currently discussed include a comprehensive restructuring of
the Group’s balance sheet which include softer terms on the
loan facilities and conversion of substantial amounts of debt
to equity which again will significantly dilute the current
holders of equity.
Under normal circumstances the main objective when
managing the Group’s capital structure is to ensure that
the Group is able to sustain an acceptable credit rating and
thereby achieve favourable terms and conditions for long
term funding which is suitable for the Group’s operation
and growth. The Group manages its own capital structure
and carries out all necessary amendments to the capital
structure, based on continuous assessments of the economic
conditions under which the operations take place and the
short and medium to long-term outlook.
Debt ratio 2021 2020
Interest-bearing debt 18 601 18 255
Interest-bearing assets non-current (sub-lease) 129 89
Restricted deposits 172 183
Cash 1 625 1 697
Net interest bearing debt 16 675 16 286
Total equity (1 326) (898)
Total equity and net debt 15 350 15 388
Debt ratio 109% 106%
During the standstill period, the DOF Group's and the
DOF Subsea's main financial covenants have been waived.
For further information see note 22 'Interest bearing debt'.
4 Accounting estimates and assessments
When preparing the annual accounts in accordance with
IFRS, the Group management has applied estimates based
on best judgement and conditions considered to be realistic.
Situations or changes may occur in the markets which may
result in changes to the estimates, thereby impacting the
Group's assets, liabilities, equity and result.
Assessments, estimates and assumptions which have a signif-
icant eect on the accounts are summarised below:
Debt to credit institutions and bondholders
Debt to credit institutions and bondholders have been presented
as current debt as a result of not having a long-term financial
solution in place or waivers covering more than 12 months after
balance sheet date. Agreement on a new long-term financing
solution or waiver of more than 12 months duration, will
result in changes in the presentation of debt to credit insti-
tutions and bondholders.
For further information about debt to credit institutions and
bondholders, see note 22 'Interest-bearing debt'.
Vessels
The carrying amount of the Group’s vessels represents 62%
of the total balance. Consequently, policies and estimates
linked to the vessels have a significant impact on the Group’s
financial statements. Depreciation is calculated on a straight-
line basis over the useful life of the asset. Depreciable amount
equals historical cost less residual value.
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Useful life and climate risk
The level of depreciation depends on the vessels estimated
useful lives. Useful life and economic life of the Group
vessels are estimated to be 30 years. The Group has reas-
sessed useful life of the subsea vessels as from 01.01.2021
and changed the period of useful life from 20 years to 30
years. Useful life of older vessels are individually assessed.
The changes in useful life and residual value has increased
the depreciation of the subsea vessels. There will always
be a certain risk of events like breakdown, obsolescence
e.g. with older vessels, which may result in a shorter useful
life than anticipated.
Useful life of vessels is based on knowledge of the market
and years of operations of these types of vessels. In addition,
impact of climate risk has been considered when determining
economic life. The economic life of the vessels and the risk
of stranded assets will depend on the Group`s ability to reach
the EU's climate and energy targets for 2030 and the objec-
tives of the European green deal. A short or longer economic
life will in turn aect the value of the Group's vessels and
equipment as well as future depreciation.
The Group's vessel operations are the significant driver for
the Group's climate footprint and the Group has for many
years systematically worked to reduce the total climate
footprint. The Group`s overall goal is to reduce emissions
per operational day by 3% each year towards the foresee-
able future through various methods, using digital tools,
deep learning, machine learning, data collection, and further
increasing the competence and operational environmental
awareness by the workforce. The Group is adapting to the
zero-mindset emission philosophy and is on track to reach
IMO requirements to reduce the Groups CO2 footprint by
40% within 2030 compared to the starting point in 2008.
There will always be a risk that a change in regulation and
the market's requirements for sustainable operation may aect
the economic life of the Groups vessels and in turn increase
the risk of asset being stranded. The Group has therefore
established various projects that continuously assess changes
in climate risk and possible mitigating measures to manage
the climate risk and the risk of stranded assets.
Established strategies and the concrete plans are evaluated
to be sucient to mitigate the risk of stranded assets and
to ensure economic life of 30 years.
For more information about the Group`s projects and activi-
ties related to emissions and energy reduction, see the Group's
Sustainability section.
Residual value of vessels
The level of depreciation depends on the calculated residual
value. The residual value has been set to zero after 30 years
as the cost of increasing environmental requirements related
to disposal of vessels are estimated to oset the scrap value
of the steel.
Useful life of investments related to periodical maintenance
Periodic maintenance is related to major inspections and
overhaul costs which occur at regular intervals over the life of
an asset. The expenditure is capitalised and depreciated until
the vessel enters the next periodical maintenance. Estimated life
of each periodical maintenance program is normally five years.
When new vessels are acquired, a portion of the cost price
is classified as periodic maintenance based on best estimates.
Impairment of assets
Vessels
For the purposes of assessing impairment for vessels, assets
are grouped at the lowest levels for which there are sepa-
rately identifiable cash flows (cash-generating units, “CGU”).
Each vessel together with associated contracts is considered
as a separate CGU.
Fair value less cost to sell
For vessels, fair value less cost to sell is based on an average
of the brokers’ estimates, taken into account sales commission.
For vessels older than ten years within the PSV and AHTS
segment the Group has used the lower value in the range
of broker estimates. All vessels in the Group are assessed
by obtaining independent broker estimates. The brokers’
estimates are based on the principle of ’willing buyer and
willing seller’. Broker estimates include mounted equipment
and assume that the vessels are without any charter contracts
(i.e. charter-free basis). The Group adjusts for positive or
negative value in associated contracts.
Due to a limited number of vessel transactions in the current
market, the brokers’ estimates only to a limited extent represent
the results of transactions in the market. Because of this, the
broker estimates are more influenced by the judgement of
each broker. For this reason, the Group has sought to sub-
stantiate the broker valuations, inter alia with value in use
calculations or tests of reasonableness of implicit rates and
other assumptions derived from the valuations.
After the evaluation, the Group has concluded that the broker
estimates are considered reliable.
Value in use
Estimated cash flows are based on next year’s budgets per
vessel, and forecasted earnings going forward. The budget
process is a detailed and thorough bottom-up budgeting process
at all levels of the organisation, with approval procedures on
all levels within the Group. Estimated future cash flows are
based on historical performance per vessel, in combination
with current market situation and future expectations. Critical
assumptions in the assessment are related to income rates,
utilisation, operational and capital expenditure.
For vessels fixed on firm long-term contracts, the assump-
tion is that the contracts run up until expiry of the contracts.
Options held by the customers are not assumed to be exercised,
unless the options are at or below current market rates. For
vessels without a contract, assumptions derived from the
evaluation of broker estimates, combined with other market
information are considered when estimating future revenues.
The Group has seen increased activity during 2021 and
high tender activity into 2022. It is however, too early to
conclude on a market recovery, hence, future earnings are
71
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dicult to forecast. The market is expected to be a weak
for the next 1-2 years, and gradually normalised to sustain-
able levels thereafter. Due to the current market situation
there is a high level of uncertainty related to the estimates.
The Weighted Average Cost of Capital (WACC) is used as
a discount rate, and reflects a normalised capital structure
for the industry. The WACC represents the rate of return
the Group is expected to pay to its sources of finance for
cash flows with similar risks. Cash flows are calculated after
tax and discounted with an after tax discount rate. The
nominal WACC used in the value in use calculations are
ranging from 8.4%-9.3%.
Sensitivity analysis or stress tests have been carried out for
the main variables in the assessment. This includes changes to
key assumptions such as broker estimates, operating income,
operating expenses and the discount rate.
ROVs
The Group has divided all ROVs into two pools of ROVs.
Each pool of ROVs is identified as a separate cash gener-
ating unit. Value in use calculation is performed for each
pools of ROVs. Principles for calculation of future cash flows
and WACC are the same as described for vessels.
Ta x
Changes in tax regimes may adversely aect the Group's
cash flow and financial conditions. Certain companies in the
Group are subject to special tax rules for ship owners in
dierent jurisdictions. The Norwegian Tonnage tax scheme
is approved as legal state aid under the EU guidelines for a
10-years period, from the 1
st
of January 2018 until the 31
st
of
December 2027.These tax rules stipulate certain requirements
which will have to be met. A failure to meet such require-
ments may have an adverse eect on the eective tax rate
of the Group. The Group is also subject to transfer pricing
regulations in various jurisdictions which might impose the
tax risk for the Group.
Deferred income tax is provided in full, using the liability
method, on temporary dierences arising between the tax
bases of assets and liabilities and their carrying amounts in
the consolidated accounts per IAS 12.
Deferred tax assets are recorded in the consolidated
statement of balance sheet on the basis of unused tax
losses carried forward or deductible temporary dierences
to the extent that it is probable that there will be su-
cient future earnings available against which the loss or
deductible can be utilised. Continued challenging market
situation, low utilisation on vessels, equipment and personnel
has resulted in lower earnings and increased risk in some
tax jurisdictions. In this context the inherent uncertainty
in forecasting the amount, timing of future taxable profits
and the reversal of temporary dierences has increased.
As a result of this, the Group has only to a limited extent
recognised deferred tax assets.
For further information about deferred tax assets and tax loss
carried forward, please refer to note 11 'Tax'.
In general, attention and follow-up from tax authorities are
increasing in all tax jurisdictions. This should be seen in
relation to OECD and G20 countries implementation of the
Base Erosion and Profit Shifting (BEPS) reporting require-
ments. The general trend that each individual country has
become more concerned about protecting their tax base, and
in this context the Group experiences more tax audits in all
countries where the Group operates. Present tax claims and
disputes are at year-end either in an administrative or legal
process with local tax authorities. Tax claims are disputed,
and the Group considers the risk of negative outcomes of
the tax claims to be lower than 50% and has not recognised
any liability regarding tax claims.
In total the Group has exposures due to ongoing tax audit
related to year 2009-2021 of approximately NOK 377 million
(included JV's of NOK 41 million).
The Group has operated in several new tax jurisdictions last
couple of years. In combination with increased focus from the
tax authorities, the total tax risk has increased. To mitigate
the increased tax risk, the Group has recognised a general tax
provision of NOK 40 million. See note 11 ‘Tax’ for further
information about tax.
In 2014, the Brazilian Federal Revenue issued a Tax Assessment
Notice against DOF Subsea Brasil Ltda (the Company).
Loans given by the Parent Company to DOF Subsea Brasil
Ltda were deemed to be taxable revenue for the Company.
The Tax Assessment Notice was disputed, but on February
7, 2019, the court of first instance in Macae ruled against
the Company. Estimated amount of the claim is approxi-
mately BRL 29.5 million (NOK 47 million) plus interest and
charges. On February 13, 2019, the Company filed a clarifi-
cation appeal before the same court. The Company intends
to defend its position and considered it to be more likely
than not that the final verdict will conclude that the loans
received by the Company will not be reclassified as taxable
revenue. No provision related to the dispute is included in
the Group's accounts as of 31
st
of December 2021. However,
DOF Subsea has provided security for the tax claim and
the amount is included in restricted cash. Outcome of such
processes are uncertain and changes in assumptions, inter-
pretations and circumstances might result in future cash
outflow for the Group related.
72
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5 Management reporting
Management reporting is reported in a manner consistent with the internal reporting provided to the Board as the chief
operating decision-makers.
The reporting below is presented according to internal management reporting, based on the proportional consolidation
method of accounting of jointly controlled companies. The bridge between the management reporting and the figures
reported in the financial statement is presented below.
Statement of Profit or Loss
2021 2020
Management
reporting
Reconciliation to
equity method
Financial
reporting
Management
reporting
Reconciliation to
equity method
Financial
reporting
Operating revenue 7 544 -1 188 6 356 7 582 -1 370 6 212
Operating expenses -4 850 198 -4 652 -4 545 248 -4 297
Share of net profit from joint ventures and associates
-13 278 265 -66 237 171
Net gain (loss) on sale of tangible assets 109 - 109 19 - 19
Operating profit before depreciation EBITDA 2 790 -712 2 078 2 990 -885 2 105
Depreciation -1 334 304 -1 030 -1 097 241 -856
Impairment -510 98 -412 -3 665 406 -3 258
Operating profit - EBIT 946 -310 636 -1 771 -239 -2 010
Financial income 376 27 403 25 45 71
Financial costs -1 234 158 -1 076 -1 338 273 -1 065
Net realised currency gain (loss) -273 5 -268 -661 26 -635
Net unrealised currency gain (loss) -358 47 -311 -1 120 9 -1 112
Net changes in fair value of financial instruments 40 - 40 -56 - -56
Net financial costs -1 449 237 -1 212 -3 150 354 -2 797
Profit (loss) before taxes -504 -73 -576 -4 921 115 -4 806
Taxes -126 73 -54 -38 -115 -153
Profit (loss) -630 - -630 -4 959 - -4 959
Statement of Balance sheet Balance 31.12.2021 Balance 31.12.2020
Management
reporting
Reconciliation to
equity method
Financial
reporting
Management
reporting
Reconciliation to
equity method
Financial
reporting
ASSETS
Tangible assets 18 052 -5 853 12 199 18 657 -5 813 12 844
Deferred taxes 341 -330 11 361 -348 12
Investments in joint ventures and associated compa-
nies
6 2 724 2 730 8 2 328 2 336
Other non-current assets 133 - 134 162 108 270
Total non-current assets 18 532 -3 458 15 074 19 188 -3 726 15 462
Receivables 2 190 -111 2 080 1 679 -49 1 630
Cash and cash equivalents 2 266 -469 1 797 2 332 -452 1 880
Asset held for sale - - - 20 - 20
Total current assets included asset held for sale
4 456 -579 3 877 4 031 -500 3 531
Total assets 22 988 -4 037 18 951 23 219 -4 227 18 993
EQUITY AND LIABILITIES
Equity -1 326 - -1 326 -898 - -898
Non-current liabilities
3 594 -3 339 255 3 969 -3 606 363
Current liabilities
20 720 -698 20 021 20 148 -620 19 528
Total liabilities 24 314 -4 037 20 276 24 117 -4 227 19 890
Total equity and liabilities 22 988 -4 037 18 951 23 219 -4 227 18 993
73
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6 Segment information
The segment reporting is based on the management reporting. See note 5 'Management reporting' for description about
accounting policies used for management and segment reporting, as well as reconciliation to the financial statements. The
chief operating decision-makers are responsible for allocating resources and assessing performance of the segments.
Business segment
The DOF Group operates within three business segments in terms of strategic areas of operation and vessel types. The three
dierent business segments are: PSV (Platform Supply Vessel), AHTS (Anchor Handling Tug Supply Vessel) and Subsea (Subsea
vessel and subsea engineering). The subsidiary DOF Subsea is represented as a part of the Subsea segment.
5 Management report (continued)
2020
Business segment PSV AHTS Subsea Total
Operating revenue 524 1 224 5 834 7 582
EBITDA 104 606 2 281 2 990
Depreciation -123 -245 -728 -1 097
Impairment -252 -730 -2 682 -3 665
EBIT -272 -369 -1 130 -1 771
Net financial items -95 -1 888 -1 167 -3 150
Profit (loss) before taxes -367 -2 258 -2 297 -4 921
Balance
Assets 1 598 4 247 10 481 16 326
Jointly controlled companies - - 6 893 6 893
Total assets 1 598 4 247 17 374 23 219
Additions 8 138 302 448
Liabilities 2 365 6 405 15 348 24 117
2021
Business segment PSV AHTS Subsea Total
Operating revenue 462 1 117 5 964 7 544
EBITDA 108 491 2 190 2 790
Depreciation -113 -216 -1 005 -1 334
Impairment -96 -68 -346 -510
EBIT -100 207 839 946
Net financial items -69 -710 -669 -1 449
Profit (loss) before taxes -169 -504 169 -504
Balance
Assets 1 398 4 450 10 267 16 114
Jointly controlled companies - - 6 874 6 874
Total assets 1 398 4 450 17 140 22 988
Additions 75 481 855 1 411
Liabilities 2 048 7 556 14 709 24 313
Statement of Cash flow 2021 2020
Management
reporting
Reconciliation to
equity method
Financial
reporting
Management
reporting
Reconciliation to
equity method
Financial
reporting
MNOK
Net cash from operating activities
2 054 -861 1 194 2 266 -821 1 445
Net cash used in investing activities
-741 462 -280 -314 312 -3
Net cash used in financing activities
-1 399 396 -1 003 -774 350 -423
Net changes in cash and cash equivalents
-86 -2 -89 1 177 -159 1 018
Cash and cash equivalents at start of the period
2 332 -452 1 880 1 715 -320 1 395
Exchange gain (loss) on cash and cash equivalents
19 -14 5 -560 27 -533
Cash and cash equivalents at the end of the period
2 266 -469 1 797 2 332 -452 1 880
74
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7 Operating revenue
2021 2020
Revenue from lump sum contracts 117 337
Revenue from contract with "day rate" 6 239 5 875
Total 6 356 6 212
2021 2020
Turnover:
NOK Ratio % NOK Ratio %
Brazil 2 536 40% 1 963 32%
Australia 938 15% 447 7%
United Kingdom 729 11% 976 16%
Norway 596 9% 877 14%
Angola 388 6% 146 2%
United States 224 4% 257 4%
Canada 205 3% 277 4%
Philippines 181 3% 151 2%
Argentina 132 2% 149 2%
Singapore 56 1% 262 4%
Other 371 6% 707 11%
Total 6 356 100% 6 212 100%
Geographical distribution of revenue from contracts with customers is based on the location of clients. In 2021, one client
accounted for more than 10% of the Group's revenue. The segments AHTS and Subsea have revenue from this client.
In 2020 the Group received NOK 110 million in compensation to two cancelled contracts. The cancellation fee is included
in total operating revenue.
The lease portion of revenue contracts are included in revenue from contracts with customers presented above. The right to
use the vessel will normally be within the range 30-80% of the total contract value.
75
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financial statements / dof group
8 Payroll expenses
2021 2020
Salary and holiday pay -1 934 -1 941
Hired personnel -326 -220
Employer's national insurance contributions -301 -284
Pensions costs -69 -47
Other personnel costs -126 -162
Total -2 756 -2 654
No. man-years employed in financial year 3 570 3 287
Government grants related to the net salary scheme for vessels are reported as a reduction in payroll costs of NOK 80 million (NOK 50 million).
Pension cost above include defined benefit pension plan and defined contribution pension plan. Both the defined benefit
pension plan and the defined contribution plan are with an external life insurance company.
Defined benefit pension
DOF ASA has phased out the defined benefit pension scheme in 2021. In addition the defined benefit pension scheme for
the oshore personnel in DOF Subsea was phased out as from 01.01.2021. At year-end 2021 the Group does not have any
defined benefit pensions for the personnel.
9 Other operating expenses
2021 2020
Short term lease of vessels -155 -148
Technical costs vessel -383 -432
Bunkers -213 -147
Equipment and equipment rental -515 -390
Amortisation contract cost -97 -39
Administration cost -201 -214
Other operating expenses -334 -273
Total -1 897 -1 643
76
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financial statements / dof group
10 Financial income and expenses
Note 2021 2020
Interest income 46 42
Gain on settlement of loan facility 22, 27 249
Government support - debt forgiveness *) 37
Other financial income 70 28
Financial income 403 71
Interest expenses -978 -959
Impairment shares and loans -1 -
Other financial expenses -96 -105
Financial costs -1 076 -1 065
Net gain (loss) on currency derivatives 1 -105
Net gain (loss) on non-current and current debt -216 -99
Net gain (loss) on working capital -53 -431
Net realised currency gain (loss) -268 -635
Net unrealised gain (loss) on non-current and current debt -399 -1 027
Net unrealised gain (loss) on working capital 88 -84
Net unrealised currency gain (loss) -311 -1 112
Net change in unrealised gain (loss) on interest swap 40 12
Net change in unrealised gain (loss) on currency derivatives - -68
Net change in unrealised gain (loss) on derivatives 40 -56
Total -1 212 -2 797
*) The Group's operation in the United States have qualified for loans granted as part of the United States response and support in connection with COVID-19.
Total debt forgiven in 2021 is USD 4.3 million, equivalent to NOK 37 million. The effect of the debt forgiveness is presented as financial income.
77
dof integrated annual report 2021
financial statements / dof group
Tax income (expense) comprises;
2021 2020
Current tax on profit for the year
-73 -73
Change in deferred taxes
19 -58
Payable tax in Norway can be offset by group contribution
- -22
Tax income (expense)
-54 -153
The tax on the Group's profit before tax diers from the theoretical amount, calculated by using domestic tax rates appli-
cable to profits of each subsidiaries as follows;
Reconciliation of nominal and effective tax rate
2021 2020
Profit (loss) before tax -576 -4 806
Tax calculated at domestic tax rates applicable to profits in the respective countries *) 149 955
Tax effect of:
Expenses not deductible for tax purposes -4 -4
Unrecognised tax losses and temporary differences -188 -1 106
Adjustment in respect to previous years -1 3
Withholding tax and effect of different tax regime -69 -48
Associates and joint ventures result reported net of tax 58 48
Total tax income (expense) -54 -153
* Domestic tax rates applicable to the Group varies between 0% to 35%.
11 Tax
2021 Before tax Tax (charge)/ credit After tax
Currency translation differences 39 1 40
Cash flow hedges 48 - 48
Share of other comprehensive income of joint ventures and associates 115 - 115
Other comprehensive income 201 1 202
2020 Before tax Tax (charge)/ credit After tax
Currency translation differences 604 - 604
Cash flow hedges 59 - 59
Cash flow hedges - impairment deferred tax assets -47 - -47
Share of other comprehensive income of joint ventures and associates -1 - -1
Other comprehensive income 616 - 616
The tax relating to components of other comprehensive income is as follows;
The gross movement on the deferred tax (deferred tax assets) is as follows;
2021 2020
At 1 January 45 -13
Income statement charge -19 58
Tax charge (credit) relating to components of other comprehensive income -1 -
At 31 December 25 45
78
dof integrated annual report 2021
financial statements / dof group
11 Tax (continued)
Deferred tax
The table below specifies the temporary dierences between accounting and tax values, and the calculation of deferred tax/
deferred tax assets at year end. The Group's deferred tax assets are reviewed for impairment.
Basis of deferred tax
2021 2020
Non-current assets -139 -426
Current assets 83 -19
Liabilities -3 545 -3 349
Tax position related to sold assets -181 -138
Other differences -13 -21
Total temporary differences -3 794 -3 953
Tax loss carried forward -5 864 -5 588
Total temporary differences and losses carried forward -9 658 -9 541
Temporary differences not included as deferred tax asset (+) 3 918 4 178
Tax deficit not included in basis for calculation of deferred tax/deferred tax assets 5 864 5 578
Basis for calculation of deferred tax/deferred tax assets (-) 123 215
Total deferred tax/deferred tax assets (-) 25 45
Gross deferred tax 35 57
Gross deferred tax asset -11 -12
Total deferred tax/deferred tax assets (-) recognised in balance sheet 25 45
Deferred tax asset are recorded in the balanse sheet on the basis of the extent that it is probable that there will be sucient
future earnings available against which the loss or duductible can be utilised. For more information see note 4 'Accounting
estimates and assessments'.
Deferred tax asset per jurisdiction
Country Tax rate
Temporary
differences
Tax loss
carried forward
Deferred
tax assets
Deferred
tax debt
Norway 22% 161 - -35
Norway 22% -7 - -2
Australia 30% -30 - -9
Total 124 - -11 -35
79
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financial statements / dof group
12 Earnings per share
Earnings per share are calculated based on the annual result for the year to the shareholders and the weighted average
number of shares throughout the financial year.
Diluted earnings per share are calculated based on the annual result as the relationship between the annual result for the
year to the shareholders and the weighted potential average number of shares throughout the financial year.
Basis for calculation of earning per share 2021 2020
Profit (loss) for the year after non-controlling interest (NOK million) -607 -4 909
Earnings per share for parent company shareholders (NOK) -1.92 -15.51
Diluted earnings per share for parent company shareholders (NOK) -1.92 -15.51
Number of shares 01.01. Date 308 962 779 307 762 779
Conversion of bond loan to shares 29.10.2020 1 200 000
Conversion of bond loan to shares 07.07.2021 7 493 388
Number of shares 31.12. 316 456 167 308 962 779
Outstanding mandatorily convertible bond loan *)
Outstanding number of shares 01.01 7 493 388 8 693 388
Converted bond loan to shares -7 493 388 -1 200 000
Outstanding number of shares 31.12. - 7 493 388
Total number of shares 31.12. incl mandatorily convertible shares 316 456 167 316 456 167
Average number of shares for the period*) 316 456 167 316 456 167
*) As the convertible bond has been mandatory converted to ordinary shares at a future date, the number of shares has been included in the outstanding
shares for the computation of basic earnings per share. The outstanding number of shares is zero at year-end 2021. There are no other dilutive instruments.
80
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financial statements / dof group
13 Tangible assets
The tangible assets are pledged against debt to credit institution, see note 22.
2021 Vessels
Periodic
maintenance ROV
Operating
equipment
Right of use
assets Total
Acquisition cost as of 01.01.2021 23 859 1 819 1 778 1 083 395 28 933
Additions 437 451 101 39 3 1 031
Reallocation -9 - 4 7 1 3
Disposals -1 350 -182 -3 - -5 -1 540
Currency translation differences -153 -17 -1 -2 -2 -175
Acquisition cost as of 31.12.2021 22 784 2 071 1 879 1 127 392 28 252
Depreciation as of 01.01.2021 5 591 1 317 1 262 777 105 9 053
Depreciation for the year 568 229 125 59 49 1 030
Reallocation - - - - - -
Depreciation on disposals -404 -160 -2 - -4 -570
Currency translation differences -29 -13 -1 -3 -1 -47
Depreciation 31.12.2021 5 726 1 373 1 384 834 148 9 465
Impairment 01.01.2021 6 948 - 14 48 26 7 036
Impairment 423 - - - - 423
Reversal of impairment -30 - - - - -30
Impairment on disposals -828 - - - - -828
Currency translation differences -12 - - - - -12
Impairment 31.12.2021 6 501 - 14 47 26 6 589
Book value 31.12.2021 10 557 699 481 246 217 12 199
Lease assets (included in book value)
228 70 217 515
Depreciation period 30 years 30-60 months 5-12 years 5-15 years 1-11 years
Depreciation method Linear Linear Linear Linear Linear
2020 Vessels
Periodic
maintenance ROV
Operating
equipment
Right of use
assets Total
Acquisition cost as of 01.01.2020 26 583 1 885 1 863 1 347 374 32 053
Additions 59 178 11 26 29 303
Reallocation -66 7 19 -160 - -200
Disposals -1 254 -101 -64 -97 -4 -1 520
Currency translation differences -1 464 -150 -52 -32 -5 -1 702
Acquisition cost as of 31.12.2020 23 859 1 819 1 778 1 083 395 28 933
Depreciation as of 01.01.2020 6 095 1 289 1 188 962 56 9 590
Depreciation for the year 350 237 158 60 52 856
Reallocation -17 - -1 -94 - -112
Depreciation on disposals -538 -96 -64 -96 -1 -795
Currency translation differences -298 -113 -19 -54 -2 -486
Depreciation 31.12.2020 5 591 1 317 1 262 777 105 9 053
Impairment 01.01.2020 4 614 - 14 43 26 4 697
Impairment 3 154 5 - 15 - 3 173
Reallocation - - - -9 - -9
Impairment on disposals -717 -5 - -1 - -722
Currency translation differences -103 - - - - -104
Impairment 31.12.2020 6 948 - 14 48 26 7 036
Book value 31.12.2020 11 318 504 502 258 264 12 844
Lease assets (included in book value)
233 74 264 570
Depreciation period 20-30 years 30-60 months 5-12 years 5-15 years 1-11 years
Depreciation method Linear Linear Linear Linear Linear
81
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13 Tangible assets (continued)
Useful life and residual value
The Group has reassessed useful life of the subsea vessels from 20 years to 30 years with eect from 01.01.2021. The
residual value has been set to zero for all vessels. In earlier periods the residual value on the subsea vessels were deter-
minated based on estimated fair value after 20 years. The change in useful life and residual value has increased the
depreciation of the subsea vessels. For further information see note 4 'Accounting estimates and assessements'.
Lease assets
The Group leases ROV's, IT equipment, various oces, cars and vessels. On long-term contracts with low residual value,
the Group has assumed an expectation of purchase of the asset. These contracts are classified as ROV and operating
equipment. Other contracts are classified as right-of-use assets and is mainly related to lease of oces. For more infor-
mation please see note 15 Leases.
Disposals
The Group has sold four vessels in 2021 and one vessel is derecognised from tangible assets and classified as financial
lease. Gain on sale of non-current assets in the consolidated profit or loss statement are related to sale of the four vessels
and other operating equipment.
Impairment
The drop in fair market values has stabilised for the majority of the fleet during the year 2021. The market conditions are
expected to remain challenging, and the timing of market recovery remains uncertain. A continuing weak market and high
volatility in currencies may increase the risk for further impairment of the Group’s assets going forward.
The impairment tests performed for 2021 have resulted in impairment of vessels and equipment of NOK 423 million (NOK
3,173 million). In addition reversal of impairment of NOK 30 million is recognised on one vessel.
There are signs of improved markets in several regions and increased demand for oshore vessels within the oshore wind segment.
It is however still too early to conclude on a market recovery. Hence, future earnings and asset values are dicult to forecast.
A continuing weak market will further increase the risk of lower earnings for the Group and put more pressure on the Group’s
liquidity position. If a robust long-term refinancing solution is not achieved and the Group cannot be treated as a going concern,
the valuation of the Group’s assets may be further revised and will result in significantly impairments of the Group’s assets.
During the year the Group has impaired 25 vessels (45 vessels) and reversed impairment on one vessel. The impairment is
divided in the following segments;
Impairment 2021
Number of vessel impaired in 2021 Book value 31.12.2021 impaired vessels Impairment 2021
Age PSV AHTS Subsea PSV AHTS Subsea PSV AHTS Subsea Total
0-10 years 3 2 3 394 862 2 414 60 25 88 173
11-15 years 1 3 4 128 332 593 5 24 85 113
15+ years 4 5 90 351 27 80 107
Total 8 5 12 612 1 194 3 359 92 49 252 393
Impairment 2020
Number of vessel impaired in 2020 Book value 31.12.2020 impaired vessels Impairment 2020
Age PSV AHTS Subsea PSV AHTS Subsea PSV AHTS Subsea Total
0-10 years 4 2 6 631 1 056 4 005 62 93 707 862
11-15 years 3 6 9 304 1 000 2 387 56 315 1 355 1 725
15+ years 7 2 6 191 - 382 135 37 400 571
Total 14 10 21 1 126 2 056 6 774 252 444 2 462 3 158
Impairment 2021 2020
Vessel 393 3 158
Operating equipment - 15
Goodwill 19 85
Total impairment 412 3 258
Impairments in 2021 include reversal of earlier impairments with NOK 30 million related to Skandi Neptune. The Group has
signed a sales agreement for delivery of the vessel in Q3 2022.
82
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13 Tangible assets (continued)
Impairment (continued)
Impairment tests have in addition resulted in impairment of vessel in joint ventures with NOK 98 million (NOK 406
million). The impairment is related to one vessel, owned by DOFCON Brasil Group. DOF's 50% share of the impairment
is as follows;
Joint venture - Impairment 2021
Number of vessel impaired 2021 Book value 31.12.2021 impaired vessels Impairment 2021
Age PSV AHTS Subsea PSV AHTS Subsea PSV AHTS Subsea Total
0-10 years -
11-15 years 1 580 98 98
Total - - 1 - - 580 - - 98 98
Joint venture - Impairment 2020
Number of vessel impaired 2020 Book value 31.12.2020 impaired vessels Impairment 2020
Age PSV AHTS Subsea PSV AHTS Subsea PSV AHTS Subsea Total
0-10 years 5 1 290 286 108 394
11-15 years 1 519 12 12
Total - 5 2 - - 809 - 286 120 406
In addition vessels in associates have been impaired with NOK 3 million in 2021 (NOK 51 million in 2020). The impairment
is reflected in Share of income of associates and joint ventures in the Income statement.
For further information see note 4 'Accounting estimates and assessments'.
For further information about joint ventures please see note 32 'Investments in jointly controlled companies and associated companies'.
For further information about measurement level see note 26 'Hedging activities'.
Sensitivity analysis of impairment
While testing the reasonableness of the broker estimates the Group has applied a nominal WACC after tax in the range of 8.4 - 9.3%.
The valuation of the vessels are sensitive for changes in WACC, USD/NOK rate and earnings. The Group has applied a nominal
WACC after tax in the range 8.4 - 9.3%. Negative changes in WACC by 50 basis points will result in an additional impairment
of the vessels of approximately NOK 74 million and a drop in USD/NOK of NOK 0.50 will result in an additional impairment
of the vessels of approximately NOK 127 million. Negative eect on net future cash flows by 20% will result in an additional
impairment of the vessels of approximately NOK 1.3 billion. In addition a negative eect on net future cash flows by 20%
will result in an impairment of the vessels in joint ventures of NOK 436 million.
DOF Group has a relatively new fleet of vessels (average age approximately 12 (11) years) and as a result future cash flows
for a long period of time. The key assumptions in a discounted cash flow calculation for vessels are utilisation and charter
rates. Changes in these assumptions would have considerable eects on the net present value of the vessels in a value in use
calculation. The Group uses measurement level 3 in value in use calculations.
.
83
dof integrated annual report 2021
financial statements / dof group
14 Contract cost
2021 2020
Book value at 01.01 93
Net value reclassified from tangible assets - 58
Reclassification -4 -
Additions 134 76
Amortisation -97 -39
Currency translation differences -1 -2
Book value 31.12. 126 93
The Group has presented and recognised contract cost as intangible asset in accordance with policies described in
note 2 ‘Accounting policies’. The main part of the contract costs is related to mobilisation of vessels, equipment and
oshore personnel.
Amortisation of contract costs are recognised over the contract period of the related contract as other operating expenses.
84
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15 Leases
Lease income - the Group as lessor
The Group acts as a lessor in connection to operating leases. The leases are related to the time charter and bareboat
contracts on vessels and equipment. For time charter contracts both the lease component and the service component are
included in the overview of future lease revenue. Vessel on operating lease are recognised as tangible assets, see note 13
'Tangible assets'. Lease payments received are recognised in the statement of profit or loss.
Future minimum operating lease income arising from contracts on vessels at period end 2021 is shown in the overview
below. All contracts in foreign currency are converted to NOK at 31
st
of December 2021 and state in NOK million.
2021 Within 1 year 2-5 years After 5 years Total
Minimum operating lease revenue 2 146 2 536 7 4 688
Minimum operating lease revenue including joint ventures 3 577 6 462 39 10 078
Total future minimum operating lease revenues include firm contracts from DOF Group vessels and the Group's share of
vessels in the joint ventures.
Joint ventures are consolidated using equity method, see notes 5 'Management reporting, 6 'Segment information' and 32
'Investments in joint controlled companies and associated companies' for further information.
For further information about revenue recognition please see note 2 'Accounting principles".
Lease - the Group as lessee
Lease liabilities
The Group's leases ROV's, IT equipment, various oces, cars and vessels. The assets are presented as tangible assets and sub-
lease, and the debt as part of the Group's borrowings.
The balance sheet shows the following amounts related to leases;
Amounts in NOK million
31.12.2021 31.12.2020
Tangible assets - ROV 228 233
Tangible assets - Operating equipment 70 74
Tangible assets - Right-of-use assets 217 264
Tangible assets 515 570
Non-current receivables sub-lease 1 44
Current receivable sub-lease 127 45
Total assets 643 659
Non-current debt to credit institution
Current debt to credit institution 150 178
Non-current lease - right of use 217 301
Current lease - right of use 87 94
Total debt 454 573
On long-term contracts with low residual value, the Group has assumed an expectation of purchase of the asset. These contracts
are classified as ROV and operating equipment. Other contracts are classified as right-of-use assets and is mainly related to
lease of oces. The bareboat contract of Skandi Darwin is classified as a sub-lease. In addition the vessel Geosund has been
agree sold and derecognised as tangible asset and presented as a sub-lease at year-end 2021.
The debt related to lease where we assumed to purchase the asset are classified as debt to credit institution. Debt related to
right-of-use assets and sub-lease is classified as lease debt.
85
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financial statements / dof group
15 Leases (continued)
The profit or loss shows the following amounts related to leases;
Amounts in NOK million
2021 2020
Short term leases -155 -148
Depreciation ROV 31 53
Depreciation Operating equipment 8 9
Depreciation Right-of-use assets 49 52
Total depreciation and impairment 88 114
Interest income 3 5
Interest expenses -17 -21
Net finance -14 -16
Total net expenses in the Profit or Loss -80 -49
Lease assets 2021 2020
Cost at 01.01. 920 1 104
Additions 76 65
Disposals -63 -244
Currency translation differences -2 -5
Cost at 31.12. 932 920
Depreciation at 01.01. 321 328
Depreciation for the year 94 114
Depreciation disposal -26 -119
Currency translation differences -1 -2
Depreciation at 31.12. 388 321
Impairment 01.01 29 29
Impairment for the year - -
Currency translation differences - -
Impairment 31.12 29 29
Book value at 31.12 515 570
For information on repayment of lease debt, please refer to note 22.
86
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16 Other non-current assets
Note 2021 2020
Non-current receivables from joint ventures - 107
Non-current receivables sub-lease 1 44
Contract costs 126 93
Other non-current receivables 27 7 26
Total 134 270
17 Trade receivable
2021 2020
Trade receivable at nominal value 845 754
Uninvoiced revenue 633 298
Provision for bad debts -23 -49
Total 1 455 1 003
The Group’s credit exposure is mainly towards customers who historically have had good financial capability to meet their
obligations and have had high credit rating. A sustained challenging market situation has resulted in changes to the credit
ratings for some customers, and thereby increased the credit risk. Historically, the portion of receivables not being collecta-
ble has been low. General allowance for expected credit losses the 31
st
of December 2021 and the 31
st
of December 2020 are
based on historical losses and updated view on general risk in the Group's industry. Loss allowance for a specific contract
are based on expectation of recovery of outstanding amount.
As of 31.12, the Group had the following accounts receivable which had matured, but not been paid.
Total Not matured <30d 30-60d 60-90d >90d
2021 845 688 68 7 12 69
Receivable not included in provision for bad debt 31
Expected credit loss rate 0.2 % 2.5 % 3.0 % 7.0 % 12.0 %
Loss allowance 9 1 2 - 1 5
Loss allowance uninvoiced revenue 1
Loss allowance specific contract 13
Total loss allowance 23
Total Not matured <30d 30-60d 60-90d >90d
2020 754 546 60 47 4 98
Receivable not included in provision for bad debt 56
Expected credit loss rate 0.2 % 2.5 % 3.0 % 7.0 % 12.0 %
Loss allowance 9 1 1 1 - 5
Loss allowance uninvoiced revenue 1
Loss allowance specific contract 39
Total loss allowance 49
87
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17 Trade receivable (continued)
Trade receivable divided on currencies:
2021 2020
Currency NOK Ratio % Currency NOK Ratio %
USD 63 553 38% 23 199 20%
BRL 344 545 37% 214 352 35%
AUD 22 141 10% 35 231 23%
NOK - 86 6% 126 126 13%
GBP 8 91 6% 6 66 7%
Other currencies 39 3% 28 3%
Total 1 455 100% 1 003 100%
18 Other current assets
Note 2021 2020
Current receivables sub-lease 127 45
Current receivables from joint ventures 126 213
Pre-paid expenses 194 145
Accrued interest income 6 11
Government taxes (VAT) 60 94
Current derivatives - -
Fuel reserves and other inventory 92 75
Other current receivables 20 44
Total 625 627
88
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19 Cash and cash equivalents
2021 2020
Total restricted cash 627 328
Restricted cash serving as security for loans -481 -145
Restricted cash, net 145 183
Unrestricted cash and cash equivalents 1 652 1 697
Cash and cash equivalents 1 797 1 880
Restricted cash consists of cash only available for specific purposes. A portion of this cash serves as security for outstanding
debt following enforcements of account pledges. The balance of these accounts sums up to NOK 481 million. Some lenders have
exercised their rights to set o such cash balances towards the outstanding loans. The Group has therefore chosen to present
all restricted cash serving as security for loans, net of debt to credit institutions.
Cash pool arrangement
The Group has cash pooling arrangements whereby cash surpluses and overdrafts residing in the Group companies bank
accounts are pooled together to create a net surplus. Liquidity is made available through the cash pooling for the Companies
in the Group to meet their obligations. The bank accounts in the cash pool consists of accounts in various currencies.
Only the master accounts, (nominated in NOK) in each of the cash pools hierarchies are classified as bank deposits and
included in the table above. The total cash pool can never be overdrafted.
Surplus cash transferred to the Group’s cash pool will be available at all times to meet the Group’s financial obligations
at any time. Some subsidiaries are not part of the cash pool structure. Surplus cash in these companies will be available
for the rest of the Group through loans or dividends. Total cash in these subsidiaries are NOK 615 million, mainly related
to DOF Installer ASA, and are included in unrestricted cash and cash equivalents.
Cash pool Currency
Currency
amount
Balance
31.12.2021
Currency
amount
Balance
31.12.2020
Cash pool arrangement 1 NOK 153 153 16 16
Cash pool arrangement 2 NOK 38 38 133 133
Cash pool arrangement 1 USD 4 39 1 10
Cash pool arrangement 2 USD 11 95 5 43
Cash pool arrangement 1 GBP 1 16 1 9
Cash pool arrangement 2 GBP 3 31 - 1
Cash pool arrangement 1 EUR 1 9 1 13
Cash pool arrangement 2 EUR - 2 1 12
Cash pool arrangement 1 AUD 2 16 5 31
Cash pool arrangement 2 AUD 2 13 - -
Cash pool arrangement 1 SGD - 1 - 1
Cash pool arrangement 2 SGD - - - -
Cash pool arrangement 1 CAD - - - -
Cash pool arrangement 2 CAD 1 5 4 24
Total net cash pool 418 293
Total surpluses 418 293
Total overdrafts - -
89
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20 Share capital and share information
Share capital: The share capital in DOF ASA as of the 31
st
of December 2021 was NOK 316,456,167 distributed between
316,456,167 shares, each with a nominal value of NOK 1.00.
Nominal value of the shares: The nominal value is NOK 1.00 per share.
Share issues in 2021: There has been two share issues during 2021. The issue was related to converted bond loan with
increase of 7,493,388 shares.
Share issue authorisation: The Board of Directors has no authorisation to increase the Company's share capital at year-end 2021.
Convertible bond: An Extraordinary General Meeting on the 6
th
of July 2016 has allocated authorisation to the Board
of Directors for a capital increase of up to 823,640,482 shares at a nominal value of NOK 0.50 related to a Subordinated
Convertible Bond. Remaining authorisation is zero at year-end 2021.
Shareholders: The 20 largest shareholders of DOF ASA and shares owned by management and board members including
shareholdings held by closely related persons and companies at the 31
st
of December 2021 were as follows:
2021 2020
Shareholders at 31.12. No of shares *) Shareholding No of shares Shareholding
MØGSTER OFFSHORE AS 100 007 313 31.60 % 100 007 313 32.37 %
BNP PARIBAS SECURITIES SERVICES 9 570 169 3.02 % 9 570 169 3.10 %
BRØNMO, BJARTE 6 780 484 2.14 % 3 136 855 1.02 %
NORDNET BANK AB 5 063 921 1.60 % 4 915 986 1.59 %
BRETTEL INVEST AS 4 000 000 1.26 % 3 145 000 1.02 %
HERNESS, BJØRN 3 326 882 1.05 %
SOTRA KRAN AS 3 200 000 1.01 % 2 754 062 0.89 %
EKREN, GEIR 2 761 760 0.87 %
NORDNET LIVSFORSIKRING AS 2 544 409 0.80 % 3 318 520 1.07 %
MOLY AS 2 539 308 0.80 % 2 007 749 0.65 %
HOLDEN, JIM ØYSTEIN 2 429 747 0.77 % 2 334 747 0.76 %
TØRRESEN, HENRY JOHAN 2 055 147 0.65 %
AVANZA BANK AB 1 994 794 0.63 % 12 217 755 3.95 %
MOCO AS 1 984 419 0.63 % 1 984 419 0.64 %
EBB HOLDING AS 1 949 097 0.62 % 1 949 097 0.63 %
CHAMANSKI, ALEXANDRE 1 900 000 0.60 %
LAWO INVEST AS 1 857 377 0.59 % 1 857 377 0.60 %
BERGEN KOMMUNALE PENSJONSKASSE 1 800 000 0.57 % 1 800 000 0.58 %
DAHL, TORE 1 744 800 0.55 %
DP HOLDING AS 1 633 517 0.52 % 1 633 517 0.53 %
Total 159 143 144 50.29 % 152 632 566 49.40 %
Other shareholders 157 313 023 49.71 % 156 330 213 50.60 %
Total 316 456 167 100.00 % 308 962 779 100.00 %
Shares controlled directly and indirectly by
Board of Directors and Management
2021 2020
No of shares *) Shareholding No of shares Shareholding
Board of Directors
Hans Olav Lindal
Chairman
- 0.00 % - 0.00 %
Helge Singelstad
Deputy Chairman
417 867 0.13 % 417 867 0.14 %
Marianne Møgster
Board member
5 687 339 1.80 % 5 687 339 1.84 %
Kathryn M. Baker
Board member
- 0.00 % - 0.00 %
Helge Møgster
Board member and Chairman until 28 May 2020
17 748 897 5.74 %
*) Via Laco AS, the Møgster family, including Helge Møgster and Marianne Møgster, have direct and indirect control of 99.9975% of the shares in Møgster
Offshore AS, the main shareholder in DOF ASA.
Management group
Mons S. Aase (Moco AS) CEO
1 984 419 0.63 %
1 984 419 0.64 %
Hilde Drønen (Djupedalen AS) CFO
449 335 0.14 %
449 335 0.15 %
Total 8 538 960 2.70 % 26 287 857 8.51 %
90
dof integrated annual report 2021
financial statements / dof group
21 Non-controlling interest
Non-controlling interest represents external interest in subsidiaries.
Non-controllings share of profit (loss) and financial position are as follows:
2021 2020
Ownership share of non-controlling interest
Non-controlling share of;
Operating income 58 109
EBITDA 22 28
Depreciation and impairment -31 -66
Operating result -8 -39
Profit (loss) before taxes -23 -46
Taxes - -4
Profit (loss) for the year -23 -49
Financial position
Tangible assets 324 233
Financial assets 1 1
Non-current debt 1 1
Current portion of non-current debt 345 213
Changes in non-controlling interest;
Non-controlling interest 1.1. 114 170
Non-controlling interest share of result -23 -49
Non-controlling interest share of result OCI - -
Reduced non-controlling interest - -6
Non-controlling interest 31.12. 91 114
Please see note 31 for information about the subsidiaries.
91
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financial statements / dof group
22 Interest bearing debt
Financing
The Board and Management have, since the second quarter of 2019, been working on a long-term refinancing solution for
the Group which includes discussions with secured lenders and the bondholders.
The restructuring of the Group’s long-term debt is ongoing and standstill agreements have been agreed until the 30
th
of
April 2022 with 91% of the secured lenders within the DOF ASA and DOF Rederi AS and with 95% of the secured lenders
within the DOF Subsea Group. In Norskan Oshore Ltda, a standstill agreement has been agreed for the facilities with the
international banks. The BNDES facilities have been served according to refinancing agreements signed in February 2020,
which is also applicable for one facility in DOF Subsea Brasil Ltda. The DOF Subsea standstill agreements assume payment
of principal and interest of a NOK 100 million credit facility provided by certain lenders in March 2020. The outstanding
amount of this facility was NOK 47 million by year-end. The relevant Group companies have imposed unilateral standstill
to the secured lenders not participating in the standstill agreements. One of the DOF Subsea secured lenders has previously
requested repayment of approximately USD 47 million and in the 3
rd
quarter 2021 this facility was prepaid at a significant
discount. Another secured lender has enforced an account pledge for one loan facility in DOF Subsea.
The ad hoc group of bondholders in DOFSUB07, DOFSUB08 and DOFSUB09 have accepted to extend the standstill until the
30 April 2022 in accordance with the resolutions of the bondholders' meeting held 28 February 2022. The DOFCON JV is
not part of the standstill agreements and serves its debt according to the terms in the relevant loans facilities.
The Company is guarantor for the debt in Iceman AS of NOK 444 million, where approximately 50% of the DOF guarantee
has been counter guaranteed by other shareholders in Iceman AS. As part of the restructuring of the Group the main share-
holders and the lenders have signed an agreement on the counter guarantees which has resulted in that the Company has
become the majority shareholder of Iceman AS, hence this company was fully consolidated from 3
rd
quarter 2021. A refinanc-
ing of Iceman is yet to come in place and the current standstill agreement is applicable until the 30
th
of April 2022.
The dialogue with the lenders has continued to be constructive and progress has been made so far into 2022. There are still
some issues pending, hence a refinancing solution is not yet in place. The debt restructuring proposal currently discussed
includes soft terms on the loan facilities and conversion of substantial amounts of debt to equity which again will significantly
dilute the current holders of equity.
The Group’s secured and unsecured debt are, in accordance with IFRS, classified as current debt at the 31
st
of December
2021. The classification is based on the Group's financial situation and standstill agreements of debt service with the
banks and bondholders.
Restructuring costs related to advisory and legal fees amounts to NOK 76 million in 2021 and are included in the financial
costs in the result.
Non current interest bearing liabilities Note 2021 2020
Bond loans - -
Debt to credit institutions - -
Lease liabilities 217 301
Total non current interest bearing liabilities 217 301
Current interest bearing liabilities
Bond loans 2 979 2 554
Debt to credit institutions 15 309 15 305
Lease liabilities 87 94
Overdraft facilities 8 1
Total current interest bearing liabilities 18 383 17 954
Total non-current and current interest bearing liabilities 18 601 18 255
Other interest bearing assets (sublease IFRS 16) 129 89
Cash and cash equivalents 19 1 797 1 880
Net Interest-bearing debt 16 675 16 286
Average rate of interest 5.74 % 5.00 %
Current interest bearing debt in the statement of balance sheet includes accrued interest expenses NOK 309 million (NOK
347 million). Accrued interest expenses are excluded in the figures above.
92
dof integrated annual report 2021
financial statements / dof group
22 Interest bearing debt (continued)
Changes in the interest bearing liabilities
Changes in interest bearing liabilities over a period consists of both cash eects and non-cash eects. The following is
the changes in the Group’s interest bearing liabilities:
Non-cash changes
2021
Balance
31.12.2020
Cash
flows *)
Proceeds
lease debt
Acquisition
subsidiary
Debt
remission
Proceeds
stand-still
agreement
Amortised
loan
expenses
Currency
and other
effects
Balance
31.12.2021
Interest bearing liabilities
Bond loans 2 554 379 5 42 2 979
Debt to credit institutions 15 305 -919 46 420 -249 433 15 258 15 309
Lease liabilities 395 -90 3 -4 304
Overdraft facilities 1 7 8
Total interest bearing liabilities 18 255 -1 002 49 420 -249 812 20 296 18 601
*) Restricted cash of NOK 335 million has been presented net of debt to credit institutions and are included in the repayments of debt in the cash flow
statement. See note 19 'Cash and cash equivalents'.
Non-cash changes
2020
Balance
31.12.2019
Cash
flows *)
Proceeds
lease debt
Proceeds
guarantee
Proceeds
stand-still
agreement
Amortised
loan
expenses
Currency
adjustment
Balance
31.12.2020
Interest bearing liabilities
Bond loans 2 589 1 -36 2 554
Debt to credit institutions 15 285 -265 6 522 309 6 -557 15 305
Lease liabilities 461 -91 29 -4 395
Overdraft facilities 78 -68 -9 1
Total interest bearing liabilities 18 414 -424 35 522 309 7 -606 18 255
*) Restricted cash of NOK 145 million has been presented net of debt to credit institutions and are included in the repayments of debt in the cash flow
statement. See note 19 'Cash and cash equivalents'.
Interest-bearing liabilities, divided by currency:
2021 2020
Currency NOK Ratio % Currency NOK Ratio %
USD 1 232 10 863 58 % 1 267 10 671 58 %
NOK 7 290 7 290 39 % 7 184 7 184 39 %
CAD 60 413 2 % 58 388 2 %
GBP 2 27 0 %
BRL 5 8 0 % 7 12 0 %
Total 18 601 100 % 18 255 100 %
After the balance sheet date NOK loan of 1,329 million and the CAD loan amounted to NOK 413 million are converted to USD.
93
dof integrated annual report 2021
financial statements / dof group
22 Interest bearing debt (continued)
Liabilities secured by mortgage
2021 2020
Debt to credit institutions 14 543 14 658
Total liabilities 14 493 14 658
Assets provided as security
Tangible assets 11 535 12 151
Receivable (non-current and current) 233 320
Investment in subsidiary/Net asset pledged consolidated *) - -
Total assets provided as security 11 768 12 471
*) Shares in Norskan Oshore SA pledged against credit facility in DOF ASA.
For loans issued directly to ship-owning subsidiaries of DOF ASA and DOF Subsea AS, a parent company guarantee has
been issued from DOF ASA and DOF Subsea AS respectively, for the nominal amount of the loans in addition to interest
accrued at any given time.
Bond loans
The fair value of the company's bond loan at 31.12.2021 was as follows:
Loan Due date *)
Coupon
rate
Price
31.12.2021 **)
Outstanding
amount
31.12.2021***)
Initial amount
31.12.2021
Price
31.12.2020 **)
Outstanding
amount
31.12.2020 ***)
Initial amount
31.12.2020
DOFSUB07 31.03.2021 7.52% 20.25 467 1 300 20.25 467 1 300
DOFSUB08 14.03.2022 9.50% 20.25 1 297 1 539 20.25 1 255 1 489
DOFSUB09 27.11.2023 8.81% 25.00 840 900 25.00 840 900
Capitalised interest 379
Amortisation cost -4 -9
Total 2 979 3 739 2 554 3 689
*) DOFSUB07 and DOFSUB08 due dates have been extended to end of the standstill period.
**) Price at par price is the latest turnover done in 2020. Due to the ongoing refinancing no turnover is recognised in 2021.
***) The outstanding amount on each bonds are lower than initial amount, due to own bonds.
The fair value of the bond loans are estimated to NOK 644 million. The amount includes fair value on capitalised interest
based on the latest turnover done on the loans.
Lease liabilities
Lease liabilities related to ROV and IT equipment were the Group expect to purchase the asset are included in debt to
credit institutions. The lease are repaid on a monthly basis with maturity from 3-10 years.
Lease debt related to right-of-use assets and sub-leases are not include in the above profile and are as follows:
2022 2023 2024 2025 2026
Subsequent
Total
Lease liabilities - related to ROV and IT equipment 150 150
Lease liabilities - right-of-use assets and sub-lease 87 44 38 35 28 71 304
Total 237 44 38 35 28 71 454
94
dof integrated annual report 2021
financial statements / dof group
22 Interest bearing debt (continued)
Financial covenants
As part of the current standstill agreement the following financial covenants have been waived in DOF ASA per 31.12.2021:
• The Group shall on a consolidated basis have a book equity of at least NOK 3,000 million.
•
The Group (excluding DOF Subsea AS and its subsidiaries) shall at all times have available liquidity of at least NOK 500 million.
• The fair market value of the vessels shall at all times to be at least 100% of the outstanding debt.
Other main financial covenants in DOF ASA are the following:
• Certain change of control clauses related to Møgster Oshore AS' ownership in DOF ASA.
• DOF ASA shall be listed on the Oslo Stock Exchange.
As part of the current standstill agreement the following financial covenants have been waived in DOF Subsea AS per 31.12.2021
(the covenants are based on proportionate method of accounting for joint ventures):
• DOF Subsea AS consolidated shall have available cash of at least NOK 500 million at all times
•
DOF Subsea AS consolidated shall have a book equity of at least NOK 3,000 million, and value adjusted equity ratio of at least 30%.
•
DOF Subsea AS consolidated shall have positive working capital at all times, (excl. current portion of debt to credit institutions).
• The fair market value of vessels shall be at least 100% - 130% of outstanding debt.
Other main financial covenant in DOF Subsea AS is the following:
• DOF ASA shall be the principal shareholder in DOF Subsea AS, and own a minimum of 50.1% of the shares.
DOF Subsea AS has further received waiver for the financial covenants as guarantor for two facilities in the DOFCON JV.
In addition, normal terms and conditions for this type of loans apply, such as full insurance of the Group's vessels and restric-
tions regarding changes of classification, management and ownership of the vessels.
23 Other non-current liabilities
Note 2021 2020
Pension - 4
Deferred tax liabilities
11
35 57
Other non-current liabilities 2
Total 38 62
95
dof integrated annual report 2021
financial statements / dof group
26 Hedging activities
Derivatives
As of the 31
st
of December 2021, the Group has interest rate swaps that are utilised to manage interest rate risk by convert-
ing from floating to fixed interest rates.
The table below displays the fair value of derivative financial instruments as of 31
st
of December 2021.
2021 2020
Measurement level Assets Liabilities Assets Liabilities
Interest rate swaps 2 - 8 - 48
Total - 8 - 48
Non-current portion
Interest rate swaps 2 - - - -
Non-current portion - - - -
Current portion - 8 - 48
Derivatives are classified as a current asset or liability if not designated as a hedge instruments. The full fair value of a hedging derivative is
classified as a non-current asset or liability if the remaining maturity of the hedged item is more than 12 months and, as a current asset or
liability, if the maturity of the hedged item is less than 12 months. As of the 31
st
of December 2021, all hedges are classified as current due
to the ongoing debt restructuring.
24 Trade payables
2021 2020
Trade payables 895 675
Total 895 675
Trade payable has the following currency split;
2021 2020
Currency NOK Ratio % Currency NOK Ratio %
USD 23 199 22% 28 237 35%
NOK 218 24% 141 21%
BRL 197 311 35% 100 165 24%
AUD 12 74 8% 5 34 5%
GBP 4 51 6% 4 49 7%
Other currencies - 42 5% - 50 7%
Total 895 100% 675 100%
25 Other current liabilities
Note 2021 2020
Public duties payable 140 123
Tax payables 69 81
Prepayments from customers 2 5
Fair value forward contracts 26 8 48
Accruals guarantee related to joint ventures - -
Other current liabilities 215 294
Total 434 551
96
dof integrated annual report 2021
financial statements / dof group
26 Hedging activities (continued)
Measurements of financial instruments
The Group uses the following hierarchy when determining and disclosing the fair value of financial instruments.
Total measurement level 1
Quoted, unadjusted prices in active markets for identical assets and liabilities.
Fair value of interest-bearing debt is disclosed face value of the bank loans and market value of bonds.
Total measurement level 2
Quoted techniques for which all inputs which have significant eect on the recorded fair value are observable, directly and indirectly.
The fair value of forward exchange contracts is determined using the forward exchange rate at the balance sheet date.
The forward exchange rate is based on the relevant currency's interest rate curves. The fair value of currency swaps is
determined by the present value of future cash flows, which is also dependent on the interest curves.
Total measurement level 3
Techniques which use inputs which have significant eect on the recorded fair value that are not based on observable market data.
Interest rate derivatives
As of 31.12 the Group held the following interest rate derivative contracts, not qualified for hedge accounting.
Instrument Fixed rate Floating rate Notional amount Effective from Maturity date
31.12.2021
Interest rate swaps - NOK 1.68 - 1.92% Nibor 3m 1 200 2018 2023
31.12.2020
Interest rate swaps - NOK 0.85% - 1.92% Nibor 3m - 6m 2 926 2016-2018 2021-2023
Hedge accounting
The Group used hedge accounting up to year-end 2019 for parts of the revenues (in Brazil) with the objective to reduce
the volatility in operational and financial result due to foreign exchange risk. The hedge was considered ineective at 31
st
of
December 2019 and the ineective portion(loss) was recognised in the finance result. Remaining hedge recognised as other
comprehensive income will be circulated to the profit or loss account over the remaining hedge period.
In 2021 NOK 48 million (NOK 59 million) has been circulated to the profit or loss. Remaining hedge recognised as other
comprehensive income in the equity at 31
st
of December 2021 amounts to NOK -91 million (NOK -139 million).
Effective portion of cash flow hedges
recognised in other
comprehensive income
Gains (losses) reclassified from
accumulated other comprehensive
income to income statement
2021 2020 2021 2020
Non-derivative financial instruments, pre-tax -48 -59 - -
Gains (losses) to be reclassified from accumulated other comprehensive income to income statement as follows:
2022 2023 2024 2025 After
Non-derivative financial instruments, pre-tax 22 21 20 17 13
97
dof integrated annual report 2021
financial statements / dof group
27 Financial assets and liabilities: Information on the balance sheet
This note gives an overview of the carrying and fair value of the Group's financial instruments and the accounting treatment
of these instruments. The table is the basis for further information regarding the Group's financial risk. The table also
shows the level of objectivity in the measurement hierarchy of each method of measuring the fair value of the Group's
financial instruments.
31.12.2021
Financial instruments at
fair value through profit
or loss
Financial instruments
measured at
amortised cost
Total
Of this included
interest bearing debt
Assets
Non-current derivatives
- - -
Other non-current receivables
7 7
Current derivatives
- - - -
Trade receivable and other current receivables
1 794 1 794
Restricted deposits
172 172 172
Cash and cash equivalents
1 625 1 625 1 625
Total financial assets
- 3 597 3 598 1 797
Liabilities
Non-current bond loans, debt to credit institution and lease debt
217 217 217
Current bond loans and debt to credit institution
18 692 18 692 18 383
Other non-current derivatives
- 38 38
Current derivatives
8 - 8
Trade payable and other current liabilities
1 110 1 110
Total financial liabilities
8 20 057 20 065 18 601
Total financial instruments
-8 -16 459 -16 467 -16 804
31.12.2020
Financial instruments
at fair value through
profit or loss
Financial instruments
measured at
amortised cost
Total
Of this
included interest
bearing debt
Assets
Non-current derivatives
- - -
Non-current receivables
- 26 26
Current derivatives
- - -
Trade receivable and other current receivables
1 410 1 410
Restricted deposits
183 183 183
Cash and cash equivalents
1 697 1 697 1 697
Total financial assets
- 3 316 3 316 1 880
Liabilities
Non-current bond loans and debt to credit institution
301 301 301
Current bond loans and debt to credit institution
18 301 18 301 17 954
Other non-current liabilities
57 57
Current derivatives
48 - 48
Trade payable and other current liabilities
969 969
Total financial liabilities
48 19 629 19 677 18 255
Total financial instruments
-48 -16 313 -16 360 -16 375
Prepayments and non-financial liabilities are excluded from the disclosures above.
The following of the Group’s financial instruments are measured at amortised cost: cash and cash equivalents, trade receiv-
ables, other current receivables, overdraft facilities and all interest bearing debt.
The carrying amount of cash and cash equivalents and overdraft facilities is approximately equal to fair value since these
instruments have a short term to maturity. Similarly, the carrying amount of trade receivables, trade payable and other
working capital are approximately equal to fair value since they are entered into at standard terms and conditions.
The fair value of the interest-bearing debt is not possible to esimate due to the ongoing refinancing in the Group. In 2021
DOF Subsea Group has repaid one debt facility with a discount of 64%.
The fair value of the bond loans are estimated to NOK 644 million, based on the lastest turnover which was in 2020.
Due to the ongoing refinancing process it is not recognised any turnover in 2021. For further information see note 22
'Interest bearing liabilities'.
98
dof integrated annual report 2021
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28 Guarantee
The Group has commitments to clients to ensure proper performance under contracts. These commitments are mainly
parent company guarantees from DOF Subsea AS on behalf of subsidiaries or counter guarantees in favour of banks for
the issuance of bank guarantees and performance bonds. The guarantees are limited to fulfilment of the contract and are
released after delivery of the project. In some cases, this is followed by a warranty period. Normally this warranty period
will have duration of 12-24 months and will only be for a portion of the initial guarantee amount.
Guarantees are given to suppliers for fulfilment of payments for deliveries of goods and services including vessels.
The Group has guarantee commitments on behalf of non-consolidated companies as per 31.12.2021:
• DOFCON Brasil Group (50% owned): Guarantees in favour of credit institutions in the total amount of USD 422 million.
Guarantee income is classified as other financial income in the income statement.
29 Related parties
Board members and management of DOF ASA and its subsidiaries will be regarded as related parties.
Below is a detailed description of significant transactions between related parties:
Long-term agreements:
Møgster Oshore AS owns 31.6% of the shares in DOF ASA. Laco AS is the main shareholder of Møgster Oshore AS.
Møgster Management AS provides administrative shared services to DOF ASA. Møgster Management AS is owned by Laco
AS. Total administrative fee for 2021 is NOK 2 million (NOK 3 million).
Austevoll Eiendom AS is a subsidiary of Austevoll Seafood ASA, which in turn is a subsidiary of Laco AS. DOF Management AS
and Marin IT AS leases premises from Austevoll Eiendom AS. Total leased premises in 2021 are NOK 2.4 million (NOK 5 million).
Individual transactions:
Group
The Group has used the shipyard Fitjar Mekaniske Verksted AS to do maintenance and repairs on the vessels. Total costs
in 2021 are NOK 4.5 million (NOK 1.2 million) and was at market terms. In addition the Group has paid NOK 2.6 million
(NOK 1.2 million) for rent of quay from Brdr Birkeland AS. Both companies are part of the Laco AS Group.
Loans to joint ventures
Loans to joint ventures DOFCON Brasil Group and DOF Iceman AS are booked at NOK 126 million (NOK 320 million)
per year end. For further information on joint ventures see note 32.
99
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30 Remuneration to executives, Board of Directors, and auditor
Total payments for salary, pension premium and other remuneration to CEO and CFO;
Amount in TNOK
Year 2021 Year 2020
CEO CFO Total CEO CFO Total
Salary incl bonus 4 550 2 860 7 411 6 430 3 830 10 260
Pension premium 126 132 258 231 274 505
Other remuneration 21 129 150 21 107 128
Total 4 698 3 121 7 819 6 681 4 212 10 893
CEO = Mons Aase, CFO = Hilde Drønen
The CEO and CFO have been members of a collective defined benefit pension scheme limited to 12G (G=national insurance
basic amount) which is closed and replaced with a collective defined contribution pension scheme in 2021.
A loan of NOK 2.5 million has been given to the CEO in DOF Subsea. The annual interest on the loans is 2%. The loan to
is to be settled in 2022. There is sucient security related to the loan.
Board fees granted on the General annual meeting as of 27
th
of May 2021 totalled NOK 1,200,000 (NOK 1,500,000) and comprises
NOK 300,000 (NOK 300,000) to the Chairman of the Board and NOK 300,000 (NOK 300,000) each to the board members.
Compensation for meetings have been paid to the Audit Committee (NOK 100,000) and the Election Committee (NOK 64,600).
In addition the chairman Hans Olav Lindal has invoiced for hour spend, in total NOK 2,603,270 (NOK 1,223,552).
Specification of auditor’s fee (amount in TNOK): 2021 2020
Audit 10 839 11 228
Fee for other confirmatory services 308 166
Tax consultation 915 561
Fee for other services 142 22
Total 12 204 11 976
All amounts in the table are excl VAT.
Guidelines governing salary and other remuneration to leading personnel in DOF
The Guidelines govern the determination of remuneration to leading personnel in DOF ASA, which were approved by the
shareholders in the General Meeting held in the 27
th
of May 2021.
The Guidelines have been prepared in accordance with the provisions of Section 6-16 a, of the Public Limited Companies Act,
supplemented by the Regulations 2015 and reports on remuneration for leading personnel.
The main principles for the Company’s politics regarding remuneration to leading personnel are to oer terms and condi-
tions which are competitive when fixed remuneration, payment in kind, bonuses and pension schemes are considered as a
whole. That does not necessarily implicate that the remuneration shall be market leading. The Company will oer a remu-
neration level which is competitive compared to similar companies and businesses, where the need for qualified personnel in
all parts of the business is also considered.
The determination of salary and other remuneration to leading personnel at any given time shall be in accordance with the
guiding principle. The amount of any bonus to the CEO shall be approved by the Board of Directors. The bonus to other
leading personnel shall be decided by the CEO together with the Chairman of the Board.
The CEO has the right to a bonus payment of 0.5% of the Group’s annual result. In addition the CEO can be granted a
discretionary bonus. The Board of Directors has entered into an intensive agreement with the CEO for 2021, which under
certain terms and conditions give a right to bonus if the CEO is still employed in the position as of the 31
st
of July 2022.
The term of notice for the CEO is 6 months. If the CEO resigns from his position, he has the right to an extra compensa-
tion corresponding to 12 months' salary. Retirement age is 67 years.
The pension scheme for the leading personnel is changed from defined benefit pension scheme to a defined contribution
pension scheme in 2021, limited to maximum 12 G (G=national insurance basic amount).
DOF ASA has no option schemes for purchase of share in the Company.
The Board of Directors shall each financial year ensure that a remuneration report is prepared and executed. The report shall
provide an overview over paid and outstanding remuneration in accordance with these Guidelines. The auditor shall control
that the report contains the information required in accordance with applicable law before the remuneration is subject to
the General Meeting. The General Meeting shall hold an advising vote over the remuneration report. The next remuneration
report shall explain how the result of the previous General Meeting’s advising vote is considered.
Any proposed adjustments in the Guidelines will be presented to the General Meeting for a new approval.
100
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31 Companies within the Group
Investments in subsidiaries Owner Registered office Nationality
Ownership and
voting share
DOF Subsea AS DOF ASA Bergen Norway 100%
DOF Rederi AS DOF ASA Austevoll Norway 100%
DOF UK Ltd DOF ASA Aberdeen UK 100%
Norskan AS DOF ASA Austevoll Norway 100%
Iceman AS/Iceman IS DOF ASA Austevoll Norway 73,5 %
DOF Management AS DOF ASA/DOF Subsea AS Austevoll Norway 100%
Marin IT AS DOF ASA/DOF Subsea AS Austevoll Norway 75%
DOF Subsea Chartering AS DOF Subsea AS Bergen Norway 100%
DOF Subsea Rederi AS DOF Subsea AS Bergen Norway 100%
DOF Subsea Rederi III AS DOF Subsea AS Bergen Norway 100%
DOF Subsea Norway AS DOF Subsea Atlantic AS Bergen Norway 100%
DOF Subsea Norway Offshore AS DOF Subsea Atlantic AS Bergen Norway 100%
DOF Subsea Atlantic AS DOF Subsea AS Bergen Norway 100%
DOF Subsea ROV AS DOF Subsea AS Bergen Norway 100%
DOF Installer ASA DOF Subsea AS Austevoll Norway 84,9 %
DOF Subsea US Inc DOF Subsea AS Houston US 100%
DOF Subsea Brasil Servicos Ltda DOF Subsea AS Macaè Brazil 100%
DOF Subsea UK Ltd DOF Subsea Atlantic AS Aberdeen UK 100%
DOF Subsea Ghana Investments Ltd DOF Subsea UK Accra Ghana 100%
DOF Subsea Ghana Ltd DOF Subsea Ghana Investment Ltd. Accra Ghana 49%
DOF Subsea Angola Lda DOF Subsea AS Luanda Angola 100%
DOF Subsea Asia Pacific Pte. Ltd. DOF Subsea AS Singapore Singapore 100%
PT DOF Subsea Indonesia DOF Subsea Asia Pacific Pte Ltd Jakarta Indonesia 95%
DOF Subsea Australia Pty. DOF Subsea Asia Pacific Pte Ltd Perth Australia 100%
DOF Subsea Labuan (L) Bhd DOF Subsea Asia Pacific Pte Ltd Labuan Malaysia 100%
DOF Subsea Malaysia Sdn Bhd DOF Subsea Asia Pacific Pte Ltd Kuala Lumpur Malaysia 100%
DOF Subsea Offshore Services Pte Ltd DOF Subsea Asia Pacific Pte Ltd Singapore Singapore 100%
DOF Subsea Asia Pacific Pte. Ltd, Philippine Branch DOF Subsea Asia Pacific Pte Ltd Muntinlupa City Philippines 100%
Mashhor DOF Subsea Sdn DOF Subsea Australian Pty. Negara Brunei Darussalam 50%
DOF Subsea Canada Corp DOF Subsea US Inc. St. Johns Canada 100%
Norskan Offshore SA Norskan AS Rio Brazil 100%
Norskan Offshore Ltda. Norskan Offshore SA Rio Brazil 100%
DOF Management Argentina S.A. DOF Management AS Buenos Aires Argentina 95%
DOF Sjø AS DOF Management AS Austevoll Norway 100%
DOF Management Pte. DOF Management AS Singapore Singapore 100%
DOF Management Australia Pty DOF Management AS Perth Australia 100%
DOF Management Egypt Branch DOF Management AS Cairo Egypt 100%
DOF Subsea Congo SA DOF ASA /DOF Subsea AS Pointe-Noire Congo 100%
101
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32 Investments in jointly controlled companies and associated companies
2021
DOFCON Brasil
Group KDS AS Associates Total
Booked value of investments 01.01. 2 327 - 8 2 336
Addition - - - -
Profit (loss) for the period 281 - -16 265
Other comprehensive income 115 - - 115
Dividend - - -1 -1
Reclassified as impairment on receivables - - 15 15
Booked value of investments 31.12. 2 724 - 6 2 730
2020
DOFCON Brasil
Group DOF Deepwater AS Associates Total
Booked value of investments 01.01. 1 771 .- 35 1 806
Addition - - 6 6
Profit (loss) for the period 603 -363 -69 171
Other comprehensive income -47 - - -47
Dividend - - - -
Reclassified as impairment on receivables - - 37 37
Reclassified as liabilities *) - 363 - 363
Booked value of investments 31.12. 2 328 - 7 2 336
*) Reclassified due to guarantee, ref. note 28.
Name of entity
Place of business/country
of incorporation
% of ownership
interest
Nature of the
relationship
Measurement
method
DOFCON Brasil Group Norway 50 % Note 1 Equity
KDS AS Norway 50 % Note 2 Equity
DOF Deepwater AS (changed name to DDW Offshore AS)
Norway 0 % Note 3 Equity
DOF Iceman AS (owner of 40% in Iceman AS) Norway 50 % Note 4 Equity
Skandi Aukra AS Norway 34.25 % Note 4 Equity
Master & Commander Norway 20 % Note 4 Equity
Semar AS Norway 42.0 % Note 4 Equity
102
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Note 1
Note 2
Note 3
Note 4
DOFCON Brasil Group consists of DOFCON Brasil AS, TechDOF Brasil AS and DOFCON Navegacao Ltda. DOFCON
Brasil AS is a holding company located in Bergen and jointly owned by DOF Subsea AS and Technip Coflexip Norge
AS with 50% each. DOFCON Brasil AS owns TechDOF Brasil AS and DOFCON Navegacao Ltda. DOFCON Brasil
Group owns six vessels. DOFCON Navegacao Ltda owns and operates Skandi Niteroi, Skandi Vitoria, Skandi Recife
and Skandi Olinda. TechDOF Brasil AS owns and operate Skandi Acu and Skandi Buzios.
DOFCON Navegação Ltda applied from 2013 hedge accounting related to foreign exchange risk on the portion of
the company’s highly probable revenue in USD by using the company’s debt in USD. As of January 2017 DOFCON,
Navegação Ltda, changed its functional currency from BRL to USD. The change in the functional currency extinguished
the foreign exchange risk that, consequently, resulted in the prospective discontinuation of the cash flow hedge
accounting.
The accumulated hedge reserves held in other comprehensive income was converted by use of exchange rate as of 1
January 2017. The Group’s share of the equity 1 January 2017 was NOK -333 million. The recycling of the accumulated
hedge reserve to the consolidated statements of comprehensive income in 2021 is NOK 31 million (NOK 56 million).
The group share of other comprehensive income related to hedging was NOK 132 million per 31.12.2021. he cost is
included in the Share of net income from associates and joint ventures.
The Group has guarantee commitments on behalf of DOFCON Brasil Group (50% owned). The guarantees are in
favour of credit institutions in the total amount of USD 422 million.
KDS AS is owned by DOF Subsea Group and Kværner AS where each part owns 50% of liable capital. KDS JV has
entered into a subcontract with Kværner AS to perform marine operations for the Hywind Tampen project for Equinor.
The company has minor eect to the result of the Group in 2021.
DOF Deepwater AS (changes name to DDW Oshore AS) was sold to Akastor in 2020.
The Company, Akastor ASA and the secured lenders agreed a debt restructuring of DDW in October 2020. As part of
the agreement, Akastor acquired the Company’s shares in DDW at zero cost. Akastor has further waived any recourse
claims against the Company related to the guarantee commitments in DDW.
The Company’s guarantee commitment at 31
st
of December 2021 amounts to NOK 532 million and is part of the Group’s
debt restructuring.
a) DOF Iceman is owned by DOF ASA and Vard Group ASA where each part owns 50% each of the liable capital.
DOF Iceman AS owns 40 % in Iceman IS. In addition DOF ASA owns 53.5% in Iceman AS. The Group has guarantee
commitments on behalf of Iceman AS. The guarantee is in favour of credit institutions in the total amount of NOK 444
million. 50% of the commitment is counter guaranteed by Vard Group. For further information see note 35 'Subsequent
events'.
b) Skandi Aukra AS; DOF ASA is shareholder with 34.25%.
c) Master and Commander AS; DOF Subsea AS is shareholders with 20%.
d) Semar AS; DOF Subsea AS is shareholders with 42.3%.
32 Investments in jointly controlled companies and associated companies (continued)
103
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32 Investments in jointly controlled companies and associated companies (continued)
Jointly controlled companies
DOFCON
Brasil Group KDS AS
DOFCON
Brasil Group DOF Deepwater AS
Profit or Loss and other comprehensive income 2021 2021 2020 2020
Operating revenue 2 473 21 2 711 116
Operating costs -493 -22 -453 -129
Operating result before depreciation (EBITDA) 1 980 - 2 258 -13
Depreciation -608 - -460 -21
Impairment -196 - -241 -571
Operating result (EBIT) 1 177 - 1 557 -605
Net financial result -469 - -581 -120
Profit (loss) before tax 707 - 976 -725
Tax income (expenses) -145 - 229 -
Profit (loss) for the year 562 - 1 206 -725
Other comprehensive income, net of tax 230 - -93 -
Total comprehensive income, net of tax 792 - 1 112 -725
Balance sheet 31.12.2021 31.12.2021 31.12.2020 31.12.2020
Tangible assets 11 705 - 11 627 -
Deferred tax assets 660 - 696 -
Total non-current assets 12 365 - 12 323 -
Current receivables 498 3 560 -
Cash and cash equivalents 884 53 904 -
Total current assets 1 382 57 1 464 -
Total assets 13 747 57 13 787 -
Total equity 5 449 - 4 657 -
Non-current liabilities 6 678 - 7 426 -
Current liabilities 1 620 56 1 704 -
Total liabilities 8 298 56 9 130 -
Total equity and liabilities 13 747 57 13 787 -
DOFCON
Brasil Group KDS AS
DOFCON
Brasil Group DOF Deepwater AS
Reconciliation of summarised financial information 31.12.2021 31.12.2021 31.12.2020 31.12.2020
Group's interest in the joint venture at 50 % 2 724 - 2 328 -
Negative equity recognised
Group's carrying amount of the investment 2 724 - 2 328 -
Financial statements of the joint ventures are not audited at the Group reporting date. Figures above are consolidated with
use of the equity method in the DOF Group.
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Associated companies
Master and
Commander
AS
DOF Iceman
AS
Skandi Aukra
AS
DOF OSM
Marine
Services AS Semar AS Total
Carrying amount 01.01.2021 - - 1 - 6 7
Additions/disposals - - - - - -
Share of result 1 -15 -1 - - -16
Dividend -1 - - - - -1
Reclassified to non-current receivables and liabilities - 15 - - - 15
Carrying amount 31.12.2021 - - - - 6 6
Carrying amount 01.01.2020 30 - 3 1 - 34
Additions/disposals - - - - 6 6
Share of result -30 -37 -1 -1 - -69
Dividend - - - - - -
Reclassified to non-current receivables and liabilities - 37 - - - 37
Carrying amount 31.12.2020 - - 1 - 6 7
Summarise financial information for associates (100%):
Name Registered office Ownership Assets Liabilities Turnover Result
2021
Master and Commander AS Oslo 20.0 % - - - 5
Skandi Aukra AS Oslo 34.25 % 113 110 32 -5
Semar AS Lysaker 42.3 % 26 12 58 1
2020
Master and Commander AS Oslo 20.0 % - - - -150
Iceman AS Oslo 34.5 % 432 434 75 -97
Skandi Aukra AS Oslo 34.25 % 117 108 21 -4
Semar AS Lysaker 42.3 % 22 10 - -
On the consolidated accounts, jointly controlled companies and associated companies are recognised according to the equity method.
32 Investments in jointly controlled companies and associated companies (continued)
105
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33 Significant acquisitions in the year
2021 Transactions
Iceman AS/Iceman IS
The Company is guarantor for the debt in Iceman AS of NOK 444 million, where approximately 50% of the DOF guarantee is
counter guaranteed by other shareholders in Iceman AS. Iceman AS is undergoing a restructuring, and a standstill agreement
with the banks is applicable until 30
th
of April 2022. One shareholder in Iceman has been released from its counter guarantee
by paying a certain amount as partly repayment of the debt. As part of this agreement the Group has increased its sharehold-
ing in Iceman from 34.5% to 73.5%. For further information see note 35 'Subsequent events'.
Iceman AS/IS is a subsidiary of DOF ASA from the 31
st
of August 2021 and is included in the Groups accounts this date. The
purchase price for the share was zero and the Group impaired NOK 20 million related to a goodwill in 2021.
2020 Transactions
The Group has not had any significant acquisitions in 2020.
34 Contingencies
The Group and its subsidiaries are involved in one ongoing court case as of the 31
st
of December 2021 related to a dive
campaign in Australia.
Tax assessment
In 2014, the Brazilian Federal Revenue issued a Tax Assessment Notice against DOF Subsea Brasil Ltda (the Company). The
basis for the Tax Assessment Notice were loans given by the Parent Company was deemed to be taxable revenue for the
Company. The Tax Assessment Notice was disputed, but on the 7
th
of February 2019, the court of first instance in Macae
ruled against the Company. Estimated amount of the claim is approximately BRL 29.5 million (NOK 47 million) plus interest
and charges. On the 13th of February 2019, the Company filed a clarification appeal before the same court. The Company
considers it highly possible that the final verdict will reach the same conclusion as the Company, hence no provision related
to the dispute is included in Group’s accounts as of 31
st
of December 2021. However, DOF Subsea has provided security for
the tax claim and the amount is included in restricted cash.
In addition the Group has in the period from 2009 until 2021 received notices of assessment of customs penalty from the
Brazilian Tax Authorities regarding importation of vessel and equipment to Brazil. The Group has disputed the assessments
and based on legal opinions from a reputable law firm decided not to make a provision in the accounts for 2021 related to
these penalty assessments, as the Group considers the risk of negative outcomes to be lower than 50%.
In total the Group has exposures due to ongoing tax audit of approximately NOK 377 million (included JV's of NOK 41
million) at year-end 2021.
Dive campaign
DOF Subsea is subject to court proceedings for alleged oences against the Oshore Petroleum and Greenhouse Gas Storage
Act 2006, in relation to a 2017 saturation dive campaign undertaken in Australian waters. The Matter has been before the
Australian Courts with the proceedings being concluded end March 2022. The Court`s determination is expected to be
finalized by the end of the second half 2022.
Based on facts and circumstances it is the Group`s view that it is more likely than not that there will be no future cash
outflow related to the dive campaign in 2017. No provision related to the dive campaign is included in DOF Subsea Group’s
accounts as of 31
st
of December 2021.
There is always a risk that changes in interpretations of facts and circumstances will be interpreted to the detriment of the
Group. Such changes might result in future cash outflow for the Group.
106
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35 Subsequent events
Contract
DOF Subsea has been awarded an extension of the current contract with a key renewable’s client for Skandi Acergy in the North
Sea and another project in Trinidad and Tobago for the vessel Skandi Constructor. The DOF Subsea Asia-Pacific region has further
been awarded a 3-year contract plus 2 x 1- year options to provide a Multi-Purpose Supply Vessel (MPSV) to Esso Australia Pty Ltd.
In Australia DOF Subsea has been awarded Woodside Energy Limited's Enfield XT Retrieval and Oshore Support Services contract,
expected to be undertaken in Q3 and Q4 2022, utilising MPSV Skandi Hercules.
DOF Subsea USA has been awarded the first SURF project for the Skandi Constructor from Vaalco Energy at the Etame field, oshore
Gabon. Engineering and design work has commenced with subsea work forecasted to begin in July and expected to be completed
by September 2022. In addition DOF Subsea won multiple new contracts with Renewables and Oil & Gas utilising Skandi Acergy,
Skandi Constructor, Skandi Hera and selected third-party vessels for 185 vessel days.
In GOM DOF Subsea has entered into an agreement with Otto Candies for the charter of the Jones Act compliant vessel Chloe
Candies for a firm period of one year from May.
In DOF Rederi AS, Equinor Energy AS has exercised options to extend the firm periods of the contracts for Skandi Mongstad for
three years and Skandi Vega for two years. In addition, Shell UK Ltda. has exercised an option to extend large/modern PSV Skandi
Kvitsøy for one year firm, from March 2022.
Assets
DOF Rederi AS has agreed to sell the vessels Skandi Rona (PSV built in 2002), Skandi Foula, (PSV built in 2002), and Skandi Sotra
(PSV built in 2003). Skandi Rona was delivered to new owner in March 2022 and Skandi Foula and Skandi Sotra will be delivered
to new owners during 2nd quarter 2022.
The current charterer of Geosea (RSV, built in 2002) owned by DOF Subsea Rederi AS, has exercised it purchase option, with
delivery during 2nd or 3rd quarter 2022.
In 2022 DOF Subsea AS has sent an oer to the minority shareholders in DOF Installer ASA to buy the remaining 15.08% of
this company at a price of 4.35 per share.
After balance date the shareholders in Iceman and the lenders have signed an agreement on the counter guarantees which has
resulted in that the company has increased its shareholdings in Iceman from 73.5% to 100%.
Financing
On 31
st
of March 2022, DOF ASA and DOF Subsea AS have agreed to further extend the principal and interest suspension
agreements with, or received extensions of similar concessions from, secured lenders representingin total 91% of debt in DOF
ASA and DOF Rederi AS and in total 95% of the secured debt of companies within the DOF Subsea AS Group (excluding
DOF Subsea Brasil Servicos Ltda.) until the 30
th
of April 2022. The ad hoc group of bondholders in DOF Subsea AS have
agreed to further extend the standstill agreement until the 30
th
of April 2022, in accordance with the resolution in the bond-
holders' meeting held 28
th
February 2022.
The extensions of the standstill periods will facilitate the DOF Group's continued dialogue with its secured lenders and the
bondholders under the DOF Group's bonds regarding a long-term financial restructuring of the DOF Group.
Invasion of Ukraine
The global community is witnessing the invasion of Ukraine and see the repercussions of fractured tensions in international
cooperation. However the Group has not identified any potential exposure to assets or operations in Eastern Europe, specifi-
cally Ukraine and Russia.
36 Foreign exchange rates
DOF ASA bases its accounting on the reference exchange rates applied by Norges Bank.
As of 31.12, the following exchange rates were applied:
2021 2020
US Dollar 8.8194 8.5326
Euro 9.9888 10.4703
GBP 11.8875 11.6462
Brazilian Real 1.5830 1.6428
CAD Dollar 6.9400 6.6976
AUD Dollar 6.3969 6.5868
Singapore dollar, SGD 6.5376 6.4560
107
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financial statements / dof asa
Financial Statements DOF ASA
Accounts - DOF ASA
108
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financial statements / dof asa
Statement of Profit or Loss
Statement of Comprehensive Income
Amounts in NOK million
Note 2021 2020
Operating revenue
2 44 53
Payroll expenses 3 -18 -22
Other operating expenses 4,17,19 -37 -29
Gain on sale of tangible assets 7 - -
Operating expenses
-55 -51
Operating profit (loss) before depreciation - EBITDA -11 2
Depreciation
7
-1 -1
Impairment 7 - -
Operating profit - EBIT -12 1
Finance income 5 86 46
Finance costs 5 -547 -2 639
Realised currency gain (loss) 5 -1 -21
Unrealised currency gain (loss)
5
-12 24
Net change in unrealised gain (loss) on derivatives
5
- -
Net financial items 5 -473 -2 590
Profit (loss) before taxes -485 -2 589
Tax income (expense)
6
- -
Profit (loss) for the year -485 -2 589
Amounts in NOK million Note
2021 2020
Profit (loss) for the year -485 -2 589
Other comprehensive income, net of tax
Defined benefit plan actuarial gains (losses) - -1
Other comprehensive income, net of tax - -1
Total comprehensive income for the year -485 -2 589
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Statement of Balance Sheet
Amounts in NOK million
Note 31.12.2021 31.12.2020
Assets
Tangible assets 7 7 5
Investments in subsidiaries 5,8 3 607 3 638
Investments in joint ventures and associated companies 5,9 6 6
Other non-current assets 10,16 1 7
Total non-current assets 3 621 3 656
Trade receivable 11,16 32 37
Other current assets 12,16 39 22
Current assets 71 60
Restricted deposits 2 3
Unrestricted cash and cash equivalents 234 82
Cash and cash equivalents 13,16 236 85
Total current assets 307 145
Total assets 3 928 3 800
110
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financial statements / dof asa
Statement of Balance Sheet
Kathryn M. Baker
Director
Storebø, 6
th
of April 2022
The Board of Directors of DOF ASA
Hans Olav Lindal
Chairman
Helge Singelstad
Deputy Chairman
Mons S. Aase
CEO
Marianne Møgster
Director
Amounts in NOK million
Note 31.12.2021 31.12.2020
Equity and liabilities
Share capital 316 309
Share premium - 139
Other equity -279 75
Equity 37 522
Other non-current liabilities 3 - 3
Non-current liabilities - 3
Current portion of debt 14,16 819 813
Trade payable 16 18 5
Debt to group companies 14,16,18 380 237
Debt related to guarantees 18 2 669 2 215
Other current liabilities 15,16 5 6
Current liabilities 3 890 3 275
Total liabilities 3 890 3 278
Total equity and liabilities 3 928 3 800
111
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Statement of Changes in Equity
Amounts in NOK million
Share
capital
Share
premium
Paid-in
equity
Other
contributed
capital
Retained
earnings
Other
equity
Total
equity
Balance at 01.01.2021 309 139 448 75 - 75 522
Profit (loss) for the year -206 -206 -279 -279 -485
Other comprehensive income net of tax
- - - -
Total comprehensive income for the year - -206 -206 - -279 -279 -485
Converted bond 7 67 75 -75 - -75 -
Total transactions with owners 7 67 75 -75 - -75 -
Balance at 31.12.2021 316 - 316 - -279 -279 37
Balance at 01.01.2020 308 2 844 3 152 87 - 87 3 238
Group contribution -127 -127 - -127
Adjusted balance at 01.01.2020 308 2 717 3 025 87 - 87 3 112
Profit (loss) for the year -2 589 -2 589 - - -2 589
Other comprehensive income net of tax -1 -1
- - -1
Total comprehensive income for the year - -2 589 -2 589 - - - -2 589
Converted bond 1 11 12 -12 - -12 -
Total transactions with owners 1 11 12 -12 - -12 -
Balance at 31.12.2020 309 139 448 75 - 75 522
112
dof integrated annual report 2021
financial statements / dof asa
Statement of Cash Flows
Amounts in NOK million
Note 2021 2020
Operating profit -12 1
Depreciation and impairment 7 1 1
Change in trade receivables 11 -29
Change in trade payable 14 1
Change in other working capital -107 -12
Foreign exchange losses/gains - 2
Net other financial income/cost - -9
Cash from operating activities -92 -45
Interest received 17 20
Interest paid -1 -6
Other financial cost -8 -8
Tax paid - -
Net cash from operating activities -84 -39
Purchase of tangible assets -4 -3
Purchase of share - -
Payments other non-current intragroup balances -6 -36
Payments other non-current receivables 6 -8
Net cash used in investing activities -3 -46
Repayment of debt - -
Net change intragroup balances "cash pool" 14 241 6
Net cash flow from financing activities 241 6
Net changes in cash and cash equivalents 153 -78
Cash and cash equivalents at the start of the period 85 178
Exchange gain/loss on cash and cash equivalents -1 -15
Cash and cash equivalents at the end of the period 236 85
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Notes to the Financial Statements
1 Accounting principles 115
2 Operating revenue 115
3 Payroll and number of employees 115
4 Other operating expenses 116
5 Financial income and expenses 116
6 Tax 116
7 Tangible assets 117
8 Investments in subsidiaries 118
9 Investments in joint venture and associates 118
10 Other non-current receivables and investment 119
11 Trade receivables 119
12 Other current assets 119
13 Cash and cash equivalents 119
14 Interest bearing liabilities 120
15 Other current liabilities 121
16 Financial assets and liabilities:
Information on the balance sheet 121
17 Remuneration to auditor 122
18 Guarantee commitments 122
19 Related parties 122
20 Contingencies 123
21 Subsequent events 123
Note Page
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Notes to the Financial Statements
1 Accounting principles
The financial statements for DOF ASA have been prepared and presented in accordance with simplified IFRS pursuant of
the Norwegian Accounting Act and are based on the same accounting principles as the Group statement with the following
exceptions:
Investments in subsidiaries, joint venture and associates
Investments are based on the cost method.
Dividends
Dividends and group contribution is treated in accordance with the Norwegian Accounting Act and deviates from IAS 10 no. 12 and 13.
For further information, reference is made to the consolidated accounts.
2 Operating revenue
2021 2020
Sales income - -
Other operating income 44 53
Total 44 53
3 Payroll and number of employees
2021 2020
Salary and holiday pay -22 -22
Employer's national insurance contribution -3 -3
Reinvoiced salary costs 6 5
Pension costs 1 -1
Other personnel costs - -1
Total -18 -22
No man-years employed in financial year 13 11
DOF ASA has the same management as the Group. Please see note 30 'Remuneration to executives, Board of Directors
and auditor' in the Group's account.
Pension cost above include defined benefit pension plan and defined contribution pension plan. Both the benefit pension
plan and the contribution plan are with an external life insurance company. The company's pension schemes meet the
requirements of the law on compulsory occupational pension.
Defined benefit pension
DOF ASA has had a defined pension benefit plan covered total 2 active members. In 2021 the defined pension scheme
has been phased out.
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5 Financial income and expenses
2021 2020
Interest income 8 14
Fluctuation on guarantee committment 50 -
Other financial income 28 32
Financial income 86 46
Interest costs -43 -24
Loss on sale of shares - -16
Impairment financial assets *) -40 -47
Loss and accruals on guarantees -453 -2 549
Other financial costs -11 -4
Financial costs -547 -2 639
Net gain (loss) on currency derivatives - -9
Net gain (loss) on operational capital -2 -12
Realised currency gain (loss) -1 -21
Net unrealised gain (loss) on non-current debt -12 24
Net unrealised gain (loss) on operational capital - -
Unrealised currency gain (loss) -12 24
Net change in unrealised gain (loss) on interest swap - -
Net gain (loss) on currency forwards contracts - -
Total -473 -2 590
4 Other operating expenses
2021 2020
Audit fee -2 -2
Consultants fee -24 -22
Provision for loss on trade receivable (internal) - 8
Other operating expenses -11 -12
Total -37 -29
6 Tax
Tax consists of:
2021 2020
Tax payable - -
Change in deferred tax - -
Tax income (expense) - -
Reconciliation of nominal and effective tax rate
Profit before tax -485 -2 589
Estimated tax income (expense) (22%) -107 -569
Tax effect of;
Tax effect of non-taxable income and non tax-deductible costs -4 11
Tax effect of associated companies 98 561
Adjustment previous year -2 -
Not included in deferred tax 14 -2
Tax income (expense) - -
The gross movement on the deferred income tax account is as follows;
At 1 January - -
Income statement - -
Other comprehensive income - -
At 31 December - -
*) Impairment financial assets is related to impairment of investments in subsidiary and associates with NOK 31 million (NOK 33 million), impairment receivable
NOK 8 million (NOK 14 million), accruals on guarantees NOK 462 million (NOK 2,559 million) and other investment NOK 0.3 million (NOK 0.1 million).
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Basis of deferred tax 2021 2020 *)
Non current asset -372 -363
Deferred capital gain 57 71
Other differences -26 -13
Total temporary differences -341 -305
Loss carried forward -30 -
Not included in deferred taxes 370 305
Basis for calculation of deferred tax / deferred tax assets (-) - -
Total deferred tax / deferred tax assets (-) (22%) - -
Gross deferred tax - -
Gross deferred tax - -
6 Tax (continued)
7 Tangible assets
2021
Operating
equipment
Right of use
asset Total
Acquisition cost as of 01.01.2021 8 1 9
Additions 4 - 4
Disposals - - -
Acquisition cost as of 31.12.2021 12 1 12
Depreciation as of 01.01.2021 4 - 4
Depreciation for the year 1 - 1
Depreciation on disposals - - -
Depreciation 31.12.2021 5 - 5
Impairment 01.01.2021 - - -
Impairment
-
Impairment on disposals
-
Impairment 31.12.2021 - - -
Book value 31.12.2021 7 - 7
Depreciation period 5-15 years 5-15 years
Depreciation method Straight line Straight line
2020
Operating
equipment
Right of use
asset Total
Acquisition cost as of 01.01.2020 5 - 5
Additions 3 1 3
Disposals - - -
Acquisition cost at 31.12.2020 8 1 9
Depreciation at 01.01.2020 4 - 4
Depreciation for the year - - 1
Depreciation on disposals - - -
Depreciation at 31.12.2020 4 - 4
Impairment 01.01.2020 - - -
Impairment - - -
Impairment on disposals - - -
Impairment 31.12.2020 - - -
Book value at 31.12.2020 4 1 5
Depreciation period 5-15 years 5-15 years
Depreciation method Straight line Straight line
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8 Investments in subsidiaries
Directly owned subsidiaries Main business Nationality
Registered
office
Share
capital
Ownership
and voting
share
Result for
the year
(100%)
Equity
31.12
(100%)
Carrying
value
31.12
DOF Subsea AS Shipowning/subsea eng. Norway Bergen
1 674
100% 82 2 594 3 497
DOF Rederi AS Shipowning Norway Austevoll
203
100% -237 -1 148 -
DOF Management AS Management Norway Austevoll
38
66% 4 183 58
DOF UK Ltd. Shipowning/management Scotland Aberdeen
-
100% -29 32 32
Norskan AS Shipowning/management Norway Austevoll
805
100% -1 13 13
Marin IT AS IT services Norway Austevoll
16
40% 4 26 6
Iceman AS/IS Shipowning Norway Austevoll
-
53,5 % -70 -69 -
Total 3 607
Due to impairment indicators related to the DOF ASA’s activity in general, impairment testing has been performed in order
to calculate the recoverable amount for the company's investments in subsidiaries. Each subsidiary is a separate cash gen-
erating unit, which is tested separately for impairment. The recoverable amount is tested against the fair value for each
subsidiary. In the event that the calculated recoverable amount is lower than book value of the investment, impairment
is made to reflect recoverable amount. The fair value for DOF Subsea AS Group includes excess values on the ownership
in the joint venture DOFCON Brasil AS and on some of the 100% owned vessels.
Please see the Group's account for information about impairment testing of non-current assets.
The impairment tests have resulted in impairment of investments in subsidiaries with total NOK 31 million (NOK 17
million). See note 5.
9 Investments in joint venture and associates
Joint ventures
Joint venture Main business Nationality
Registered
office
Share
capital
Ownership
and voting
share
Result
for the year
Equity
31.12
(100%)
Carrying
value
31.12
DOF Iceman AS Shipowning Norway Austevoll 24 50% -10 -206
Total -
Due to impairment indicators related to the DOF ASA’s activity in general, impairment testing has been performed in order to
calculate the recoverable amount for the company's investments in joint ventures and associated companies. Each joint ventures
and associated company is a separate cash generating unit, which is tested separately for impairment. The recoverable amount
is tested against fair value for each investment. In the event that the calculated recoverable amount is lower than book value
of the investment, impairment is made to reflect recoverable amount.
Please see the Group's account for information about impairment testing of non-current assets.
There has been no impairment on investments in joint ventures in 2021 (NOK 0 million). See note 5.
Associated companies
Associated companies Main business Nationality
Registered
office
Share
capital
Ownership
and voting
share
Result
for the year
Equity
31.12
(100%)
Carrying
value
31.12
Skandi Aukra AS Shipowning Norway Oslo 1 34.25% -5 3 6
Total 6
Impairment test of investment in associates has resulted in an impairment of NOK 0 million (NOK 16 million).
Impairment test of other shares have resulted in an impairment of NOK 0.3 million (NOK 0.1 million) Other shares are
included in 'Other receivables and investments'.
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10 Other non-current assets
Note
2021 2020
Non-current receivables 179 183
Provision for losses 18 -179 -177
Other investments 1 1
Total 1 7
11 Trade receivables
2021 2020
Trade receivable 9 -
Trade receivable to intragroup 23 37
Total 32 37
The company's credit exposure is mainly towards customers who historically have had good financial capability to meet
their obligations and have had high credit rating. A sustained challenging market situation has resulted in changes to the
credit ratings for some customers, and thereby increased the credit risk. Historically, the portion of receivables not being
collectable has been low. An impairment analysis is performed to measure expected credit losses.
As of 31.12, the company had the following trade receivable which had matured, but not been paid.
Total Not matured <30 d 30-60d 60-90d >90d
2021 32 22 9 - - 2
2020 37 36 - 1 - -
12 Other current assets
2021 2020
Intragroup receivables 32 13
Other inventory 3 3
Other current receivables 3 6
Total 39 22
13 Cash and cash equivalents
2021 2020
Restricted cash 2 3
Bank deposits 234 82
Total 236 85
DOF ASA owns and controls one cash pooling system within the Group. Cash in the cash pooling system is presented
as cash and cash equivalents in the financial statement. See DOF Group note 19 'Cash and cash equivalents' for further
information about the cash pool arrangement.
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Non current interest bearing liabilities 2021 2020
Debt to group companies - -
Total non current interest bearing liabilities - -
Debt to credit institutions 819 813
Debt to group companies**) 325 84
Total current interest bearing liabilities *) 1 143 897
Total interest bearing liabilities 1 143 897
Average rate of interest 5.15% 5.83%
*) Accrued interest amounts to NOK 1 million and is not included in interest bearing liabilities.
**) Current debt to group companies equals cash drawn in Group cash pool.
Liabilities secured by mortgage 2021 2020
Debt to credit institutions 337 315
Total liabilities secured by mortgage 337 315
Assets provided as security 2021 2020
Investment in subsidiary/Net asset pledged consolidated *) - -
Total assets provided as security - -
*) The shares in Norskan Oshore SA was pledged against credit facility in DOF ASA.
14 Interest bearing liabilities
Financing
The Board and Management have, since the second quarter of 2019, been working on a long-term refinancing solution for
the Group which includes discussions with secured lenders and the bondholders.
The restructuring of the Group’s long-term debt is ongoing and standstill agreements have been agreed until the 30
th
of April 2022 with 91% of the secured lenders within the DOF ASA and DOF Rederi AS and with 95% of the secured
lenders within the DOF Subsea Group (excluded DOF Subsea Brasil Servicos Ltda). In Norskan Oshore Ltda, a standstill
agreement has been agreed for the facilities with the international banks. The BNDES facilities have been served according
to refinancing agreements signed in February 2020, which is also applicable for one facility in DOF Subsea Brasil Ltda. The
DOF Subsea standstill agreements assume payment of principal and interest of a NOK 100 million credit facility provided
by certain lenders in March 2020. The outstanding amount of this facility was NOK 47 million by year-end. The relevant
Group companies have imposed unilateral standstill to the secured lenders not participating in the standstill agreements.
One of the DOF Subsea secured lenders has previously requested repayment of approximately USD 47 million and in the
3
rd
quarter 2021 this facility was prepaid at a significant discount. Another secured lender has enforced an account pledge
for one loan facility in DOF Subsea.
Financial covenants
The main share of the Group’s fleet is financed via mortgaged loans. A set of covenants has been established for the
mortgaged loans in DOF Group and DOF Subsea Group.
As part of the current standstill agreement the following financial covenants have been waived in DOF ASA per 31.12.2021:
* The Group shall on a consolidated basis have a book equity of at least NOK 3,000 million.
* The Group (excluding DOF Subsea AS and its subsidiaries) shall at all times have available liquidity of at least NOK 500 million
* The fair market value of the vessels shall at all times to be at least 100% of the outstanding debt.
Other main financial covenants in DOF ASA (not waived) are the following:
* Certain change of control clauses related to Møgster Oshore AS' ownership in DOF ASA.
* DOF ASA shall be listed on the Oslo Stock Exchange.
In addition, normal terms and conditions for this type of mortgaged loans apply, such as full insurance of the Group's
vessels and restrictions regarding changes of classification, management and ownership of the vessels.
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15 Other current liabilities
Note
2021 2020
Other current liabilities 5 6
Total 5 6
16 Financial assets and liabilities: Information on the balance sheet
This note gives an overview of the carrying amount of DOF ASA's financial instruments and the accounting treatment of these
instruments. The table is the basis for further information regarding DOF ASA's financial risk. The table also shows the level of
objectivity in the measurement hierarchy of each method of measuring the fair value of DOF ASA's financial instruments.
31.12.2021
Financial instruments
at fair value through
profit or loss
Financial instruments
measured at
amortised cost
Total
Assets
Financial investment
1 1
Other non-current assets
- -
Trade receivable
32 32
Other current assets
35 35
Cash and cash equivalents
236 236
Total financial assets
1 303 305
Liabilities
Current portion of debt
819 819
Trade payable and other current liabilities
3 071 3 071
Total financial liabilities
- 3 890 3 890
Total financial instruments
1 -3 587 -3 586
Prepayments and non-financial liabilities are excluded from the disclosures above.
31.12.2020
Financial instruments
at fair value
through profit or loss
Financial liabilities
measured at
amortised cost Total
Assets
Financial investment
1 1
Other non-current assets
6 6
Trade receivable
37 37
Other current assets
19 19
Cash and cash equivalents
85 85
Total financial assets
1 148 149
Liabilities
Current portion of debt
813 813
Trade payable and other current liabilities
2 462 2 462
Total financial liabilities
- 3 275 3 275
Total financial instruments
1 -3 128 -3 127
Prepayments and non-financial liabilities are excluded from the disclosures above.
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17 Remuneration to auditor
Specification of auditor’s fee (amount in TNOK): 2021 2020
Audit 1 755 2 375
Tax consultation 380 -
Fee for other services 30 15
Total 2 165 2 390
All amounts in the table are excl VAT.
18 Guarantee commitments
On a general basis DOF ASA has issued guarantees to financial institutions on behalf of its wholly owned subsidiaries on maritime
mortgages/loans. As per 31.12.2021 DOF ASA has accrued debt related to guarantees on behalf of the subsidiaries DOF Rederi AS,
Norskan Oshore Ltda and Iceman AS in the amount of NOK 2,669 million (NOK 2,215 million).
DOF ASA has in some cases issued guarantees on behalf of partly owned subsidiaries. DOF ASA has guarantee commitments on
behalf of the following partly owned companies as per 31.12.2021:
• DOFCON Navegacao Ltda. (50% owned): Guarantee in favor of BNDES. Total amount USD 77 million (USD 87 million).
• Iceman AS: Guarantee in favor of the company's Lender. Total amount NOK 444 million. 50% of the commitment is
counter guaranteed by Vard Group. As part of the restructuring of the Group the main shareholders and the lenders in
Iceman AS have signed an agreement on the counter guarantees which has resulted in that the Company has become the
majority shareholder of Iceman AS. A refinancing of Iceman is yet to come in place and the current standstill agreement
is applicable until the 30
th
of April 2022.
Guarantee income is classified as other financial income in the income statement.
19 Related parties
Below is a detailed description of significant transactions between related parties:
Long-term agreements:
Møgster Oshore AS owns 31.6% of the shares in DOF ASA at year-end 2021 (please see note 21 in the Notes to the
Consolidated Financial Statement). Laco AS is the main shareholder of Møgster Oshore AS. Møgster Management AS
provides administrative shared services to DOF ASA. Møgster Management AS is owned by Laco AS. Administration fee
for 2021 is NOK 0.2 million (NOK 1.0 million).
Individual transactions:
Guarantee
DOF ASA has issued a guarantee in the maximum amount of NOK 444 million (NOK 427 million) on behalf of Iceman
AS in favor of DNB ASA. Guarantee income in 2021 was NOK 3.7 million (NOK 3.1 million). Iceman AS is owned with
40% by DOF Iceman. DOF ASA and Vard ASA are owners with 50% each in DOF Iceman AS. In addition DOF ASA owns
53.5% in Iceman AS.
Loans to joint venture
DOF ASA has provided loan to joint venture and the book value at period end is NOK 0 million (NOK 0 million). Historical
value of the loans amounts to NOK 103 million and provisions for losses amounts to NOK 103 million.
Information about transactions with related parties do not include transactions with companies in the DOF Group.
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20 Contingencies
DOF ASA is not involved in any ongoing court cases as of the 31
st
of December 2021.
21 Subsequent events
Please see the Notes 35 'Subsequent events' to the Consolidated Statement.
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We confirm, to the best of our knowledge, that the financial statements for the period January to 31
st
of December 2021
has been prepared in accordance with approved accounting standards, and gives a true and fair view of the Company’s
consolidated assets,
liabilities, financial position and result of the operations and that the Report of Board of Directors provides
a true and fair view of the development and performance of the business and the position of the Group and the Company
together with a description of the key risks and uncertainty factors that the Company is facing.
Confirmation from the Board of Directors and CEO
Kathryn M. Baker
Director
Hans Olav Lindal
Chairman
Helge Singelstad
Deputy Chairman
Mons S. Aase
CEO
Marianne Møgster
Director
Storebø, 6
th
of April 2022
The Board of Directors of DOF ASA
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’
PricewaterhouseCoopers AS, Sandviksbodene 2A, Postboks 3984 - Sandviken, NO-5835 Bergen
T: 02316, org. no.: 987 009 713 MVA, www.pwc.no
Statsautoriserte revisorer, medlemmer av Den norske Revisorforening og autorisert regnskapsførerselskap
To the General Meeting of DOF ASA
Independent Auditor’s Report
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of DOF ASA, which comprise:
• The financial statements of the parent company DOF ASA (the Company), which comprise the
statement of balance sheet as at 31 December 2021, the statement of profit or loss, statement
of comprehensive income, statement of changes in equity and statement of cash flows for the
year then ended, and notes to the financial statements, including a summary of significant
accounting policies, and
• The consolidated financial statements of DOF ASA and its subsidiaries (the Group), which
comprise the statement of balance sheet as at 31 December 2021, statement of profit or loss,
statement of comprehensive income, statement of changes in equity and statement of cash
flows for the year then ended, and notes to the financial statements, including a summary of
significant accounting policies.
In our opinion:
• the financial statements comply with applicable statutory requirements,
• the financial statements give a true and fair view of the financial position of the Company as at
31 December 2021, and its financial performance and its cash flows for the year then ended in
accordance with simplified application of international accounting standards according to
section 3-9 of the Norwegian Accounting Act, and
• the financial statements give a true and fair view of the financial position of the Group as at 31
December 2021, and its financial performance and its cash flows for the year then ended in
accordance with International Financial Reporting Standards as adopted by the EU.
Our opinion is consistent with our additional report to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the Company and the
Group as required by laws and regulations and the International Ethics Standards Board for
Accountants’ International Code of Ethics for Professional Accountants (including International
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Independence Standards) (IESBA Code), and we have fulfilled our other ethical responsibilities in
accordance with these requirements. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit
Regulation (537/2014) Article 5.1 have been provided.
We were elected auditors for DOF ASA before 2001, and have now served as auditors for a continuous
period of at least 22 years. We were re-elected by the general assembly the 27.05.2021.
Material Uncertainty Related to Going Concern
We draw attention to Note 2 in the financial statements and the Board of Directors’ report, which
indicates that the Group is dependent on a long-term solution with banks and bondholders to secure
satisfactory financing and liquidity for the Group. As stated in Note 2 and the Board of Directors’
report, these events or conditions, along with other matters as set forth in Note 3 and Note 35 and the
Board of Directors’ report, indicate that a material uncertainty exists that may cast significant doubt
on the Company’s ability to continue as a going concern. There is a risk that the Group will not reach
an agreement with the lenders, and in such an event the Group could be forced to realise its assets at a
significantly lower value than their carrying amount. Our opinion is not modified in respect of this
matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial statements of the current period. These matters were addressed in the
context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on these matters. In addition to the matter described in the Material
Uncertainty Related to Going Concern section, we have determined the matters described below to be
the key audit matters to be communicated in our report.
The Group’s business activities are largely unchanged compared to last year. Impairment assessment
of vessels and vessel related equipment involves similar complexity and risks as previous years and
have been considered as key audit matters also for 2021.
Key Audit Matter How our audit addressed the Key Audit Matter
Impairment assessment of vessel and
vessel related equipment
DOF ASA Group has vessels and vessel
related equipment with a carrying
amount of NOK 12 199 million at 31
December 2021. In line with the Group’s
accounting policy for impairment of non-
financial assets, the Board of Directors
has assessed that there were impairment
indicators present for the Group’s vessels
as of 31 December 2021. Consequently,
they have carried out an impairment
We obtained management’s impairment model and
considered whether the model contained the elements
and methodology IFRS require from such models. We
found the model to be in accordance with our
expectations.
We challenged management’s key assumptions such as
the projected utilisation, charter hire rates, operating
expenses and discount rates, and compared with
historical performance, management’s internal
forecasts and long-term strategic plans that were
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assessment. Based on the results of the
vessel impairment assessments, a net
impairment charge of NOK 393 million
including a reversal of impairment of
NOK 30 million related to disposal of a
vessel was recognised in 2021 resulting in
the carrying amounts of certain vessels
and vessel related equipment being
written down to their recoverable
amount. In addition, joint venture vessels
have been impaired, whereas DOF ASA
50% share represent NOK 98 million in
2021.
We focused on this area because vessels
and vessel related equipment constitute a
significant share of the total assets in the
Group, and because the assessment of the
recoverable amount is complex and
involves significant management
judgement.
Value-in-use (“VIU”) for the vessels was
estimated using discounted cash flows.
Each individual vessel, together with
associated contract, was assessed as a
separate cash generating unit. Significant
management judgement was related to
key assumptions such as utilisation,
charter hire rates, operating expenses and
discount rates.
Fair value less costs to sell (“FVLCS”),
was estimated by obtaining professional
valuations for each vessel from two well-
reputed and independent brokers, taken
into account estimated sales commission.
The uncertainty related to valuation of
the company’s vessels and vessel related
equipment are considered to be high due
to the challenging market conditions.
We refer to Notes 2 and 4 for the Group’s
accounting policy for impairment of non-
financial assets, and Note 13 where the
Board of Directors explain their valuation
process for the Group’s tangible assets.
approved by the Board of Directors. We also considered
publicly available information about macroeconomic
assumptions relevant to the industry and considered
whether the assumptions were consistent with
management assumptions and what we know about
DOFs business. We found management’s assumptions
to be within a reasonable range.
To consider the reliability of management forecast, we
compared previous year’s estimates to actual historical
performance. We considered whether deviations from
the budget had reasonable explanations. We assessed
the discount rate by comparing key components used
with external market data, as well as comparing the
overall level with discount rates used by other
companies within the industry. We considered that the
discount rates were within an appropriate range.
We evaluated the competence and objectivity of the
external brokers used by the Group. The range of values
derived from the two independent brokers were
compared with the VIU estimates. We considered the
appropriateness and reliability of the fair value
estimates from the external brokers. We were able to
conclude that the broker estimates were appropriate as
audit evidence. However, for some of the vessel
categories we have observed larger spread in the broker
estimates recent years, which indicate higher
uncertainty in the valuations. Therefore, management
has found it necessary to substantiate the broker
valuations with VIU calculations and tests of
reasonableness. We found that none of the vessels,
after impairment, had a carrying value that was
materially higher than their VIU estimates.
We lastly evaluated the adequacy of the disclosures
made on impairment of vessel and vessel related
equipment, including those regarding key assumptions
and sensitivities, and found that disclosures
appropriately explained management’s valuation
process and the uncertainties inherent in some of
management’s key assumptions.
Other Information
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The Board of Directors and the Managing Director (management) are responsible for the information
in the Board of Directors’ report and the other information presented with the financial statements.
The other information comprises information in the annual report, but does not include the financial
statements and our auditor’s report thereon. Our opinion on the financial statements does not cover
the information in the Board of Directors’ report and the other information presented with the
financial statements.
In connection with our audit of the financial statements, our responsibility is to read the Board of
Directors’ report and the other information presented with the financial statements. The purpose is to
consider if there is material inconsistency between the Board of Directors’ report and the other
information presented with the financial statements and the financial statements or our knowledge
obtained in the audit, or whether the Board of Directors’ report and the other information presented
with the financial statements otherwise appears to be materially misstated. We are required to report if
there is a material misstatement in the Board of Directors’ report and the other information presented
with the financial statements. We have nothing to report in this regard.
Based on our knowledge obtained in the audit, it is our opinion that the Board of Directors’ report
• is consistent with the financial statements and
• contains the information required by applicable legal requirements.
Our opinion on the Board of Director’s report applies correspondingly for the statements on Corporate
Governance and Corporate Social Responsibility.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation of financial statements that give a true and fair view in
accordance with simplified application of international accounting standards according to the
Norwegian Accounting Act section 3-9, and for the preparation and true and fair view of the
consolidated financial statements of the Group in accordance with International Financial Reporting
Standards as adopted by the EU, and for such internal control as management determines is necessary
to enable the preparation of financial statements that are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s and the
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless management either intends to
liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with ISAs will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
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’
Independent Auditor's Report - DOF ASA
(5)
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional scepticism throughout the audit. We also:
• identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error. We design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company's or the Group's internal control.
• evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• conclude on the appropriateness of management’s use of the going concern basis of
accounting, and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Company and the
Group's ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in
the financial statements or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Company and the Group to cease to
continue as a going concern.
• evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions
and events in a manner that achieves a true and fair view.
• obtain sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the group
audit. We remain solely responsible for our audit opinion.
We communicate with the Board of Directors regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide the Audit Committee with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with the Board of Directors, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare circumstances, we determine that a
matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
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’
Independent Auditor's Report - DOF ASA
(6)
Report on Other Legal and Regulatory Requirements
Report on compliance with Regulation on European Single Electronic Format
(ESEF)
Opinion
We have performed an assurance engagement to obtain reasonable assurance that the financial
statements with file name “DOF ASA – ESEF Annual reporting 2021” have been prepared in
accordance with Section 5-5 of the Norwegian Securities Trading Act (Verdipapirhandelloven) and the
accompanying Regulation on European Single Electronic Format (ESEF).
In our opinion, the financial statements have been prepared, in all material respects, in accordance
with the requirements of ESEF.
Management’s Responsibilities
Management is responsible for preparing, tagging and publishing the financial statements in the single
electronic reporting format required in ESEF. This responsibility comprises an adequate process and
the internal control procedures which management determines is necessary for the preparation,
tagging and publication of the financial statements.
Auditor’s Responsibilities
For a description of the auditor’s responsibilities when performing an assurance engagement of the
ESEF reporting, see: https://revisorforeningen.no/revisjonsberetninger
Bergen, 6 April 2022
PricewaterhouseCoopers AS
Sturle Døsen
State Authorised Public Accountant
(This document is signed electronically)
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Appendix A
Performance measurements definitions
DOF ASA financial information is prepared in accordance with international financial reporting standards (IFRS). In addition
DOF ASA discloses alternative performance measures as a supplement to the financial statement prepared in accordance with
IFRS. Such performance measures are used to provide an enhanced insight into the operating performance, financing and future
prospects of the company and are frequently used by securities analysts, investors and other interested parties.
The definitions of these measures are as follows:
Financial reporting – Financial Reporting according to IFRS.
Management reporting – Investments in joint ventures (JV) is consolidated on gross basis in the income statement and
the statement of financial position. See the Group Accounts note 5 for presentation of the bridge between the management
reporting and the financial reporting.
EBITDA – Operating profit (earnings) before depreciation, impairment, amortisation, net financial costs and taxes is a
key financial parameter. The term is useful for assessing the profitability of its operations, as it is based on variable costs
and excludes depreciation, impairment and amortise costs related to investments. EBITDA is also important in evaluating
performance relative to competitors.
EBIT – Operating profit (earnings) before net financial costs and taxes.
Interest bearing debt – Total of non-current and current borrowings.
2021 2020
Bond loans (non-current) - -
Debt to credit institutions (non-current) - -
Lease debt (non-current) 217 301
Current bond loan, debt to credit institutions and lease debt 18 692 18 301
Total bond loan and debt to credit institutions 18 910 18 602
Accrued interest expenses -309 -347
Total interest bearing liabilities 18 601 18 256
Net interest bearing debt – Interest bearing debt minus current and non-current interest-bearing receivables and cash and
cash equivalents. The use of the term “net debt” does not necessarily mean cash included in the calculation are available to
settle debts if included in the term. See the Groups Accounts note 22 for presentation of net interest bearing debt.
Debt ratio – Net interest bearing debt divided on total equity and net debt.
Utilisation of vessel – Utilisation of vessel numbers is based on actual available days including days at yard for periodical
maintenance, upgrading, transit or idle time between contracts.
Contract coverage – Number of future sold days compared with total actual available days excluded options.
Contract backlog – Sum of undiscounted revenue related to secured contracts in the future and optional contract extensions
as determined by the client. Contract coverage related to master service agreements (MSA`s) within the subsea segment,
includes only confirmed purchase order.
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DOF is a values-driven company operating in the offshore energy
sector, where energy production is transitioning to cleaner solutions
and renewables. To be a sustainable, investible company our business
platform must reflect stakeholders’ expectations, future market
demand for the skills and potential of our people and our assets.
PrinciplesPrinciples
SAFE, LEGAL, ETHICAL DECISIONMAKING,
EVERYWHERE WE DO BUSINESS
GRI-201 Economic Performance
GRI-204 Procurement practices
GRI-205 Anti-corruption
GRI-206 Anti-competitive behaviour
GRI-407 Freedom of association and
collective bargaining
GRI-409 Forced or compulsory labour
GRI-411 Rights of indigenous peoples
GRI-414 Supplier social assessment
GROUP
Environmental, Social, and Governance commitments
ProsperityProsperity
GOOD CORPORATE CITIZENS, EFFICIENT
OPERATIONS, POSITIVE IMPACTS
GRI-202 Market Presence
GRI-207 Tax
GRI-413 Local communities
DOF-1 Customer feedback
DOF-2 Product reliability
DOF-3 Risk balancing
THE
Planet
TRANSPARENCY, ENVIRONMENTAL
STEWARDSHIP & SUSTAINABLE SOLUTIONS
TO REDUCE OUR IMPACT
GRI-302 Energy
GRI-305 Emissions
GRI-306 Waste
GRI-308 Supplier environmental
assessment
PeoplePeople
A SAFE, INCLUSIVE,
INSPIRING WORKPLACE:
GRI-401 Employment
GRI-402 Labour/management relations
GRI-403 Occupational health and safety
GRI-404 Training and education
GRI-405 Diversity and equal opportunity
GRI-406 Non-discrimination
GRI-415 Public policy
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Contents
Introduction 134
Measuring our results & setting ambitions
People 138
Planet 148
Prosperity 156
Principles 162
Appendix B 172
GRI Content Index 172
Materiality 182
Enterprise Risk Management 184
Value driver results 186
Figures & tables 188
Figure overview 199
Independent auditor's report 200
2021
DOF ESG FACTBOOK
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Welcome to our 2021
ESG factbook
Providing detailed non-financial performance data on key ESG indicators
The content contained in this factbook is organised around the World
Economic Forum’s framework: People, Planet, Prosperity, Principles.
Within each area, it is also described how the DOF values relate to the
area. The ESG factbook supports the statements and ambitions stated
in the DOF Integrated Annual Report 2021.
As DOF’s sustainability efforts evolve, expand, and become more
comprehensive, so too do our stakeholders and their material interest
in our activities. It is therefore of the utmost importance that DOF has
eective mechanisms and reporting structures to communicate financial
and non-financial information to these interested parties.
The content contained in this factbook is
organised around the World Economic Forum’s
framework: People, Planet, Prosperity, Principles.
Within each area, it is also described how the
DOF values relate to the area. The ESG factbook
supports the statements and ambitions stated
in the DOF Integrated Annual Report 2021.
This year, DOF has adopted the World Economic
Forum’s Stakeholder Capitalism Metrics of; People,
Planet, Prosperity and Principles.
Not only does this framework compliment DOF’s
vision of creating broad stakeholder value, but
it promotes a core set of non-financial metrics
and disclosures for investors and stakeholders
alike. DOF is committed to the pillars of People,
Planet, Prosperity and Principles and believes
this concept is integral to future sustainability
initiatives and communication.
The following ESG Factbook supports the DOF
Integrated Annual Report 2021 by providing
verifiable and where possible, quantifiable data
points, assuring the legitimacy of our statements
and ambitions.
DOF has reported in the areas of sustainability
to the GRI standards measuring Economic,
Environment, and Social aspects for eight years.
This, along with our participation in Carbon
Disclosure Project over the last eleven years,
has driven engagement with stakeholder groups
and improved both management and performance
in these areas.
In 2021, we made further progress in transparency
and integrated reporting as DOF adopts the
World Economic Forum's 4-pillar approach,
bringing all the measures of stakeholder value
together, aligning the non-financial reporting
with financial reporting. Our vision and strategic
ambitions are set out in this integrated report.
This report format aims to communicate to all
stakeholders, underpin change, and outline targets
and measures for the next strategic period.
This document can be found in digital format on our
website: www.dof.com/sustainability.
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dof integrated annual report 2021
Safeguarding our people, the environment, and communities
where we operate is our highest priority.
Safe the RITE way
Respect, Integrity, Teamwork, Excellence.
Above all we are Safe.
Safety is at the centre of business and the icon.
This illustrates how our values interact to keep us
safe. How the Team embraces the values and holding
them together is symbolised by people holding hands
around the values.
Safe the RITE way
Applying our values to define significance,
guide our approach, assess our results
and set the ambitions into our future.
DOF is a values-driven organisation with world-
class social, environmental, ethical and governance
standards. Our actions and decisions are always
guided by and grounded in our values. Our
ability to engage with stakeholders, identify
material issues and manage material risk is key
to the sustainability of the organisation. Our
values underpin our approach to Sustainability,
from identifying material issues – the issues
that impact the business and are important
to stakeholders – to setting the ambitions for
our future.
Safety is at the centre of business and the icon.
This illustrates how our values interact to keep
us safe. How the Team embraces the values and
holding them together is symbolised by people
holding hands around the values.
Why are we a "values-driven" organisation?
In business ‘the only constant is change’.
The advantage of having a solid set of beliefs
and values is that the organisation can adapt
rapidly to situational or commercial change, but
always with an anchor of beliefs and values.
This is the essence of a sustainable organisation;
where our values guide our actions to respond
to relevant economic, environmental and social
factors. We meet stakeholder expectations and
navigate daily challenges, large and small, by
having a deep understanding of our values, clear
priorities and reporting mechanisms. “What we
do is as important as the way in which we do it.”
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dof integrated annual report 2021
This table shows how DOF connects
material aspects to key stakeholders
and our company values:
Safe, Respect, Integrity, Teamwork,
& Excellence.
Creating value
for all of our
stakeholders
People
SAFE
Above all we are SAFE
TEAMWORK
Respect for people: our colleagues, our customers,
our business partners and our environment.
TEAMWORK
We build diverse and global teams and strive
for free exchange of ideas, experience
and knowledge, worldwide.
* Material issues identification is
aligned with the GRI Standards
p High importance to DOF
r Medium importance to DOF
r Business Ethics
p Employee HSE
p Labour Practices
p GRI-401 Employment
p GRI-402 Labour/management relations
p GRI-403 Occupational health and safety
p GRI-404 Training and education
p GRI-405 Diversity and equal opportunity
p GRI-406 Non-discrimination
r GRI-415 Public policy
MATERIAL TOPICS (GRI)MATERIAL TOPICS (GRI)
MATERIAL ISSUES (DOF*)MATERIAL ISSUES (DOF*)
Global: Employees, shareholders, customers, local com-
munities, NGOs, policy makers, shareholders, suppliers
OUTSIDE THE ORGANISATIONOUTSIDE THE ORGANISATION
Whole organisation: DOF's ambition is to be an
incident-free organisation. We are highly committed
to our core values – Safe the RITE way - and
we work pro-actively to achieving them.
Safe is significant to DOF and is paramount to
our ongoing success and sustainability, we work
to ensure we are safe and our team returns
safely, everywhere we do business.
WITHIN THE ORGANISATIONWITHIN THE ORGANISATION
Safeguarding our people is the overall objective
in everything we do. Through the Safe the RITE
way framework, DOF has ambition to ensure
the good health and well-being of all employees.
Measurable key performance indicators are used
as part of this work, to monitor the effect of the
activities performed within the area.
The DOF Workbook includes a module on Physical,
Social and Mental well-being, which puts the
different aspects of health together in a holistic
approach.
Our continuous efforts on simplification of our
safety system and procedures aim to turn the
focus from the industry’s inbuilt bureaucracy, back
to enhanced safe work practices.
UN SDGUN SDG
Gauging ripple effects from COVID-19
We have experienced first-hand the fallout of
COVID-19 and all the economic and social
consequences that come with it.
Like many other World Economic Forum Global
Risk Perception Survey respondents, DOF’s activ-
ities are subject to disparities in COVID-19
political responses and divergent economic recovery
rates. The economic, geopolitical, public health
and societal fractures that the pandemic risk
has accelerated are reported as something likely
to delay the business communities’ response to
other global challenges such as climate response,
the greening of energy systems, addressing digi-
tal vulnerabilities, and social degradation. Whilst
the WEF reports these as ‘Global Challenges’,
our internal workshops translate these topics
as material issues to DOF.
Read more about DOF's materiality approach
on page 182 of the appendecies.
COMPANY VALUESCOMPANY VALUES
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Planet
RESPECT
Respect for people: our colleagues,
our customers, our business partners,
and our environment.
p Energy Management
p GHG Emissions
p Supply Chain Management
r Waste & HAZMAT Management
p GRI-302 Energy
p GRI-305 Emissions
r GRI-306 Waste
p GRI-308 Supplier envi-
ronmental assessment
Global: Customers, civil society, policy makers,
local communities, NGOs, shareholders
Whole organisation: Defining and measuring envi-
ronmental sustainability risks associated with our
business activities is an important activity for the
Group. DOF is actively working with its partners
on finding energy efficient and CO2 reducing
solutions as part of their own efforts to reduce
carbon footprint.
The main source of DOF’s climate impact is
the fuel used by its vessels. DOF has various
activities and programs to reduce its climate
impact, including; Ship Energy Efficiency Plans
(SEEMP), goal of 3% annual reduction (intensity
target) in fuel consumption, installation of shore
power capability, installation of battery packs
on vessels, and participation in the CDP for
transparent environmental reporting.
Through an R&D project with Kongsberg, we aim
to use digital solutions to reduce energy usage on
our vessels, through Intelligent Efficiency. There is
potential for 15%-30% reduction in fuel consumption,
ultimately leading to significant reduction in emissions.
DOF also has other internal activities such as
preparedness for acute pollution from vessels,
using environmentally friendly products (for
example non-hazardous hydraulic oil in ROVs)
and environmental management plans.
Prosperity
EXCELLENCE
Excellence in everything we do.
We are resourceful and responsive to
our customers’ needs: innovative in the
solutions we apply to everyday problems.
Principles
INTEGRITY
Integrity is the very corner stone
of our business.
We behave ethically – always.
p Business Model Resilience
r Human rights & Community Relations
r Product Design and Life Cycle
p GRI-202 Market Presence;
p GRI-207 Tax;
r GRI-413 Local communities;
r DOF-1 Customer feedback;
r DOF-2 Product reliability;
p DOF-3 Risk balancing
r Business Ethics
p Business Model Resilience
r Human rights & Community Relations
p Supply Chain Management
p GRI-201 Economic Performance;
p GRI-204 Procurement practices;
r GRI-205 Anti-corruption;
r GRI-206 Anti-competitive behaviour;
p GRI-407
Freedom of associa-
tion and collective bargaining;
p GRI-409 Forced or compulsory labour;
r GRI-411 Rights of indigenous peoples;
p GRI-414 Supplier social assessment
MATERIAL TOPICS (GRI)MATERIAL TOPICS (GRI)
MATERIAL ISSUES (DOF*) MATERIAL ISSUES (DOF*)
Global: Customers, civil society, shareholders,
suppliers, policy makers, civil society
Global: Employees, shareholders, customers, local com-
munities, NGOs, policy makers, shareholders, suppliers
OUTSIDE THE ORGANISATIONOUTSIDE THE ORGANISATION
Whole organisation: For DOF, business integrity
and ethics policy are of high priority and DOF
expects their companies and employees to follow
and adopt behaviours to protect and build the
DOF’s reputation, in all situations.
For DOF to be in compliance to law and to
industry standards is of strategic priority. In all
of the regions where DOF operates, it strictly
follows all rules and regulations addressed by the
national governments.
DOF acknowledges the importance for our customers
of a reliable partner and that is why we are always
seeking to obtain the highest industry standard
certifications before accredited bodies.
Whole organisation: DOF understands that acting
in accordance with its Code of Business Conduct
towards their partners and employees is decisive
in achieving the highest standards by which DOF
conducts their business activities every day.
WITHIN THE ORGANISATIONWITHIN THE ORGANISATION
By employing local content, DOF contributes to
economic growth in the various areas of operation.
DOF is also committed to operating responsibly
and respecting local laws and regulations. Through
its Tax Strategy, DOF ensures that tax is paid
fairly to the countries where it operates.
DOF acts ethically and lawfully to protect our
reputation and comply with applicable laws and
regulations, wherever we do business.
Our Code of Business Conduct gives us clear
rules and provides guidance for decision-making
in ethical dilemmas. This is particularly important
when operating in areas with high risk related to
Anti-Bribery and Corruption. DOF has established
an Ethics Helpline where both employees and any
other stakeholders can report by a phone available
24/7, or through an online form. Reports can be
made anonymously.
DOF’s focus towards Integrity is not limited to
ourselves; we strive to ensure that our partners
and suppliers operates according to the same
standards, for example by assessing all suppliers
towards the principles of the UN Global Compact.
DOF operates in many different areas around the
world, and some of these areas lack a strong
public education system. Either by direct contri-
bution to employees or partnerships with other
members of the industry, DOF contributes to
quality education of children in challenging areas.
The DOF Workbook gives the foundation for
training in the years to come. By delivering training
modules on all aspects of how we work, we have
established a unique way to engage training and
development of our people.
DOF strives to promote a workplace where all
are treated fairly, accepted equally, without any
exclusion - in a harassment-free workplace. As
a Group, we benefit from the different talents,
experiences and perspectives equality and diversity
brings to the workplace and the individual con-
tribution employees make. Our guiding principle
is that everyone should be treated with dignity
and respect at work.
UN SDGUN SDG
COMPANY VALUESCOMPANY VALUES
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dof integrated annual report 2021
People
Company values that are directly connected to people:
SAFE, RESPECT, TEAMWORK
Safeguarding people is our highest priority. The Group has built on the Safe the RITE way program,
strengthening our global safety culture. We work continuously to improve safety systems and our
safety performance. DOF core values act together to create a strong safety culture and deliver our
highest priority: “Above all we are Safe”. We work to ensure we are safe, and our team return
home safely, everywhere we do business. Protecting the health and safety of our people and our
environment is a fundamental requirement of business as it is paramount to DOF’s on-going success
and sustainability. It is a material issue and a right that all employees, their families, our whole
supply chains, clients, investors and regulators expect to be sustained. It is essential to winning
business and attracting recruiting and retaining talented employees. We work to ensure we are
safe, and our team return home safely, everywhere we do business. Cyber security, securing our
Information Technology (IT), and Operation Technology (OT) infrastructure and preventing cyber-
attacks, is also an important aspect of our business and sits within our definition of SAFE.
“Respect underpins everything we do and every interaction we have. Respect for people: our
colleagues, our customers, and our business partners. As global citizens we are socially responsible,
we respect the individual, the local customs and cultures of our various markets. Acting with care
and consideration is central to our wellbeing and safety and ensures we minimise our environmental
impact.” The Group aims to create an environment of empathy, mutual respect and understanding
amongst all stakeholders. DOF is an equal opportunity employer and does not tolerate any form
of harassment or discrimination within the workplace or local communities where we operate. We
operate in an evolving market. It is vital for DOF to develop in the energy sector, together with
our key partners, in line with the targets articulated in UN’s Sustainable Development Goals. As a
responsible organisation and through Respect we aim to maintain our equal opportunity employer
performance: we will not tolerate any form of harassment or discrimination within the workplace.
According to the DOF values: “Everything we achieve is as a result of teamwork. Each of us is
responsible and open in our professional relationships, co-operative and collaborative, treating one
another with dignity and respect. We do not blame; we find and share solutions and we learn from
mistakes. From this platform we build diverse and global teams and strive for free exchange of
ideas, experience and knowledge, worldwide.” Companies are their People. Collaboration between
team members is a key success factor for DOF. Teams, at every level of the organisation, have built
the professional and respected company we are today.
In turn, working for a values-driven company,
oering fair work, with career development and team environment creates an engaged workforce which
benefits customers, investors, and suppliers. Training and careers programs benefit local communities.
DOF is committed to building strong and capable teams, through training and developing of key
employees, either as part of important teams, or as potential leaders.
Within People, we apply our values
to define significance,
guide our approach, assess our results, and set the ambitions into our future.
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2021
2021 activities within People
COVID recovery
During the entire year tremendous eorts and sacrifices has
been done to protect our crew and employees towards COVID-19.
Continuously and changing regulations and demands from
government and health authorities all over the world, has
loyally been followed by our employees in a stoic and under-
standable way. Despite all of eorts and precautions, several
employees ended in CRU units for months. However, all are
now out of hospitals and are now supported by Company
and health professionals to get back at work. The biggest
challenges have been to support and facilitate protocols and
follow up of our employees in Brazil.
At the end of the year when the Company started to prepare
for a normalisation, the new OMICRON variant hit us hard
with hundreds of employees infected. Nevertheless, due to
high vaccinations rate in DOF, the impact and symptoms of
the infection was greatly reduced in most cases.
DOF will in future handle COVID-19 outbreak as an influ-
enzas like infection and be guided by our medical protocols
oshore and HR handbooks onshore and loyal follow advice
directed by WHO and regional legislation.
Social
DOF’s strong standards within the social dimension of business
aligns with UN's Global Compact and Sustainable Develop-
ment Goals. This ensures decent work, generates wealth for
employees, local communities, and along our supply chain
as well as wider society by generating taxes.
Health, Safety, and Security
Protecting the health and safety of our people and our envi-
ronment is a fundamental requirement of business as it is
paramount to DOF’s on-going success and sustainability. It is
a material issue and a right that all employees, their families,
our whole supply chains, clients, investors and regulators
expect to be sustained. It is essential to winning business
and attracting recruiting and retaining talented employees.
We work to ensure we are safe, and our team return home
safely, everywhere we do business.
DOF’s approach to Health, Safety and Security from a sus-
tainability perspective aligns closely with how this is managed
operationally.
Labour and Human Rights
DOF follows the Norwegian Shipowners Association’s approach
to Labour and Human Rights in our industry:
The main concern is possible non-compliance with general
labour and human rights standards, particularly related to
the use of short-term contracts and temporary employment
through manning agencies, which may weaken worker’s rights.
Several cases of modern slavery have been uncovered in the
value chain in recent years, particularly involving migrant
workers at yards.
2.05
per million man-hours
TRIR
TRIR (Total recordable injuries rate) in 2021
0.68
per million man-hours
LTIFR
LTIFR (Lost time injury frequency rate) in 2021
Balanced KPIs
DOF has established nine KPIs within
Safety, balancing leading and lagging
indicators.
Ambitious targets
"This is an incident-free organisation"
New insights
DOF is utilising a data warehouse
solution and Power BI, to enable a deeper
insight and analysis of our numbers.
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dof integrated annual report 2021
2021
The Norwegian parliament has adopted the Transparency
Act, obliging large and mid-size companies to conduct human
rights and decent work due diligence not only for its own
operations and supply chain, but throughout all business
relationships in the value chain. Under this Act, citizens will
be entitled to request information from companies, and the
Norwegian consumer authority may issue injunctions and
fines for non-compliance. Reporting should cover how the
company approaches labour and human rights for its own
employees, as well as in the value chain, particularly related to
contracted workers and yard workers for newbuilds and ship
recycling. DOF will in 2022 ensure that relevant governing
documents and processes are aligned with the Transparency
Act requirements.
DOF will in 2022 support roll-out of Amnesty’s eLearning
course on Business and Human Rights. The course will be
mandatory for positions in DOF that are exposed to issues
related to Human Rights.
Human Rights Due Diligence
DOF currently has a template for “Company Analysis and
Due Diligence Report”. This template will be reviewed to
ensure the parts covering Labour and Human Rights are
aligned with new requirements.
Diversity
Over the last few years, the Group have identified increas-
ingly stricter requirements for reporting on various aspects of
workplace diversity. In 2022, systematic work will be initiated
to get an overview of these changes and develop a guideline
on how to measure various aspects of diversity. This could
include (but not limited to) wages, training, career paths and
management positions. The work will be basis for a more
structured approach to this area in the future.
As part of the DOF Ambassador program, one of the work-groups
have been assigned a strategic project related to diversity in DOF.
Occupational Health & Safety management
DOF is committed to ensuring the provision of a healthy and
safe working environment throughout company operations,
through interaction and consultation with stakeholders.
The Occupational Health & Safety management is verified by
DNV according to requirements in the ISO 45001 standard
and the ISM code and forms a part of the Business Man-
agement System (available on www.dof.com).
• The Occupational Health and Safety Manual (OH&S) is in
line with international standards such as ISO 45001 and
the ISM code.
• DOF has established procedures to ensure that hazards are
identified, the likelihood and consequence of occurrence is
assessed and, as necessary, suitable control measures are
introduced along ALARP principals.
• Personnel are trained in the use of appropriate risk
assessment and management techniques.
Hazard identification, risk assessment, and incident
investigation
DOF implements a hazard and risk management process in
order to identify hazards and risks associated company activ-
ities - aligned with ISO 31000 Risk Management - Principles
and Guidelines:
• Risk assessment processes are audited by internal and
external parties such as DNV;
• All employees must undertake basic training in risk iden-
tification and assessment;
• All employees have the Stop Work Authority;
• Incident investigation depends on the level of severity of
the incident and is published in the DOF Workbook;
• All investigations conclude with recommendations in the
occupational health and safety management system.
Occupational health services
DOF has an agreement with an internationally recognised,
accredited occupational health service provider. Services can be
accessed directly or through positions such as a vessel’s nurse.
Worker participation, consultation, and communication
on occupational health and safety
• DOF’s OH&S management system IT application allows for
feedback directly on specific documents, or to make general
improvement suggestions.
• Safety Delegate & Protection and Environment Committee
(PEC) committees at vessels and onshore worksites guarantee
worker involvement. These committees may vary depending
on local legislation.
The Norwegian Maritime Cyber Resilience Centre - NORMA Cyber is a joint effort
between Den Norske Krigsforsikring for Skib (DNK) and the Norwegian Shipowners’
Association and started operations from the 1
st
of January 2021.
The centre delivers centralised cyber security services to Norwegian shipowners and
other entities within the Norwegian maritime sector. NORMA Cyber aims to be the
leading hub for operational cyber security efforts within the Norwegian maritime sector.
NORMA Cyber
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Worker training on occupational health and safety
All workers are required to perform mandatory e-learning
related to Risk Assessment and the Permit to Work system,
which are fundamental to safeguarding our people.
Promotion of worker health
DOF aims to ensure that all employees have access to non-oc-
cupational medical and healthcare services. This is normally
achieved through agreements with local health insurance
companies. The coverage of these insurances will be adapted
to circumstances such as availability of universal health care
and statutory requirements. Overall, DOF follows an industry
benchmark for its health insurance coverage.
In some regions, programs have been established for voluntary
health promotion services such as annual health check-up.
Prevention and mitigation of occupational health and safety
impacts directly linked by business relationships.
DOF’s oshore operations are where our people have the
highest exposure to health and safety risks. The Permit
to Work system identifies high risk operations. The system
ensures a thorough process before work may commence and
includes risk assessment for the specific work to be done.
Workers covered by an occupational health and safety
management system
All employees at DOF vessels and worksites are covered by
the Occupational Health and Safety management system. This
includes both employees and workers who are not employees.
By 31.12.2021 the headcount of DOF sta was 3,820 people. An
exact number of workers who are not employees is not available.
In addition to regular internal audits, the OH&S Manage-
ment system is verified by DNV according to requirements
in the ISO 45001 standard and the ISM code.
Cyber security
Cyber security is our practice of defending computers, servers,
mobile devices, electronic systems, networks, and data from
malicious attacks. Our defence of the Group IT and OT infra-
structure is guided by our global Cyber Risk Management
standard, built around but not limited to:
•
Network security by online monitoring securing DOF's com
-
puter network from intruders, whether targeted attackers
or opportunistic malware.
•
Application security by design is focused on keeping software
and devices free of threats.
• Information security protects the integrity and privacy of
data, both in storage and in transit.
•
Operational security processes are in place for handling and
protecting data assets in a best possible way.
•
Disaster recovery and business continuity plans are in place to
dictate how the business restore any loss of operations or data
and to return to the same operating capacity as before an attack.
• End-user education is in place to teach our employees
to detect secure suspicious e-mails and behave like data
security ocers on behalf of our Company.
• DOF is part of NORMA Cyber including services like intelli-
gence, security operations and crisis response. Regular ERT
exercises are executed to be prepared and respond to attacks.
Respect for each other and cultural diversity
Respecting cultural diversity while working towards the same
goals is a key success factor for DOF. All DOF employees
undertake mandatory and regular values-based training.
The Code of Business Conduct (COBC) is in place to guide
behaviour and support sound judgement and common sense
and DOF’s values are embedded in many other business and
discipline related training materials.
Robust, respectful and healthy communication between
our people in the Group, across geographical borders and
“top-down – bottom-up” is valued.
Labour rights & relations (employee satisfaction)
DOF is committed to encourage and support all employees
and ensure all employees align with DOF’s vision and values.
DOF aims to perform working environment surveys every
second year, followed by improvement process until the next
survey. A survey is planned for 2022.
DOF follows a practice which conforms to international
standards for human rights, and Group operations are
managed in accordance with fundamental labour standards.
Our guidelines and standards are based on the ILO Conven-
tion that prohibits all use of forced labour or child labour.
DOF recognises and respects the employees’ right of associa-
tion, organisation and collective bargaining, and the company
guidelines conform to the labour regulations stipulated by
all local authorities.
Labour / Management Relations
DOF is part of an industry known to be cyclical and in
down-times redundancy and down-sizing are an unfortu-
nate part of the cycle. DOF ensures continuous dialogue with
employees’ representative and trade unions. It is inevitable
that workforce numbers will change according to demand,
however DOF will do its utmost to assist employees aected
by down-sizing and have a robust program to support those
employees with career and financial counselling.
Training and Education
The DOF training framework is based on nine key strategies:
• Cultivate Core Values, Safe the RITE way;
• Partner with dierent business units to establish core
competencies;
• Leverage Intellectual Capital;
• Invest in Strategic Learning;
• Align Strategies with Corporate Objectives;
• Broaden Learning Activities;
• Focus on Performance Solutions;
• Speed up knowledge transfer and knowledge retention;
• Build our employee branding.
In addition to training for DOF employees, all third-party
personnel onboard our vessels must complete a vessel
induction process, with vessel familiarisation, DOF’s opera-
tional standards and Code of Business Conduct, and mandatory
e-learning modules covering Permit to Work, Management
of Change, and Risk Assessment.
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2021 results within People
Through entire 2021, DOF has strived to protect our
people onboard and in our oces from the COVID-19 virus.
Despite hundreds of employees infected throughout the year,
everyone has recovered. The continuously changing require-
ments and recommendations from governments and health
organisations has been exhausting. Nevertheless, we have
been able to maintain our guidelines and regional protocols
aligned with current requirements by tremendous eort by
the onshore organisation. However, the greatest burden has
been on our people oshore who have experienced quaran-
tine periods, extended and changed shifts, travel restrictions
and less time at home.
Based on experience through the pandemic, Medical Service
and Employee Benefit Program has been strengthened to ensure
they provide support for mental well-being and health issues.
DOF went into 2021 with many ambitious HSE projects and a
clear objective to improve the results from the previous year.
The HSE results are better than in 2020, but still far away
from our ambitions. The trend throughout the year was very
positive, but in Q4 we experienced a number of incidents
connected to lack of awareness and inexperience. We find it
likely that a major contributing factor was the wave of the
Omicron variant taking the focus, demotivating an already
fatigued organisation, and imposing new restrictions requiring
use of personnel not familiar with the DOF safety culture.
Modern communication
The substantial eorts started in 2020 to modernise the com-
munication channels in DOF continued throughout 2021. Our
communication strategy changed during 2021, with increased
focus on promoting and empowering our people. This will
continue as a key communication strategy going forward.
A new initiative with global, digital town hall meetings lead by
the CEO started in Q3, and this will continue as a quarterly
session. The town hall meetings consist of the CEO giving a
general “state of the union” update, and a part of the session
where a specific topic is presented by a subject matter expert.
In 2021, the organisation in Brazil arranged Annual Leaders
Seminar 2021. Due to the COVID-19 pandemic, the event was
held in virtual format. The theme of the event was "Shaping
DOF for the future" - the strategic plan of DOF Group going
forward. More than 450 employees from both onshore and
oshore were engaged during the event through the chat,
sending questions and interacting through the platform.
The Modern Workforce Communication project made significant
progress and approximately half of our oshore employees
had received their DOF email account by end of 2021.
Other improvement activities delivered in 2021:
•
Maintained ISO 45001:2018 certification status for the DOF Group.
• Global survey among our oshore crew that gave valued
input and advices on how to improve eorts within Occu-
pational health and Safety
• Update to Cyber Risk Management standard
• Improved coordination, dialogue and regular meetings in
the global HSEQ organisation
• Regular issues of monthly Safety Theme reflecting current
challenges at the time
Work-related injuries 403-9
All HSE incidents are reported through a common system
for DOF, “Docmap”. The system is available in the oce
and on all DOF vessels. Among the data captured for each
incident is Type of injury, injured body part, Gender, Age
and Injury classification.
HSE reporting aligns with the reporting principles of IMCA.
The man-hours used to calculate frequencies are based on
exposure hours and include hours for all personnel on our
vessels. This provides the most accurate indicators regarding
the overall safety performance.
Significant metrics are outlined in Figure 6 and Figure 7 on
page 166 shows the Occupational Health and Safety Indicators.
For 2021 the objective was to be below 0.3 LTIs per million
man-hours. At the end of the year, we reported 0.68 LTIs
per million man-hours for DOF as a whole.
The total recordable injuries rate (TRIR) for DOF was 2.05
in 2021. The TRIR is an indicator of the total number of
LTIs, restricted workday cases and medical treatment cases
per million man-hours. The IMCA TRIR for 2020 was 1.09.
Number of first aid cases has for 2021 been 6.26 per million
man-hours.
The main types of injury are lacerations and impact injuries
(sprains / fractures).
Being a global company operating within multiple cultures,
openness is a key approach. Our result in reporting safety
observations, both positive and negative, reaches the impres-
sive figure of 711 reports per 200,000 man-hours.
In 2021, there were six lost time injury cases recorded.
One incident resulted in partial amputation of a finger when
finger was hit by a high-speed object due to unexpected
release of pressure.
Two of the incidents did not result in long-term absence or
permanent disability.
Three of the incidents occurred towards the end of the
year and the injured persons had not returned to work by
31.12.2021. It is expected that the injured persons will fully
recover within 6 months.
In most locations where DOF operates, trade union agreements
contain provisions that address the health and safety of our
employees. All our oshore workers are covered by the MLC 2006.
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Emergency management
Emergency Management protocols and systems are well
developed within DOF; however, this is an area where
training and readiness are crucial to the eective manage-
ment of any emergency situation or crisis. Regular scenario
training, conducted by third party organisations specialis-
ing in Crisis management, is provided for personnel in the
Emergency Response Teams (ERT). Scenario Training is
supported by electronic system exercises to ensure individ-
uals remain familiar with the system.
Emergency response training exercises range from a variety
of oshore scenarios to more universal themes of business
continuity in order for DOF to ‘Stress Test’ and improve
where necessary. Organisational compliance is monitored by
Key Performance Indicators.
During the year, there were 58 mobilisations in the Crisis
Management system. 30 were actual incidents; 28 were
exercises. The high number of actual incidents can be attrib-
uted to the system being used to handle actual or suspected
COVID cases onboard vessels.
Cyber security
There have not been any major cyber security incidents in 2021.
FiftyFifty
Since 2017 the FiftyFifty programme has educated women from
both Norwegian and international companies. The programme
is presented by AFF and is based on the UN Sustainable Devel-
opment Goal 5 “Gender Equality”. FiftyFifty has, since its
origin in 2017, brought women together from both Norwegian
and international companies to learn and share best practices.
In 2021, seven women in DOF joined the program together
with women from many other industries.
DOF’s global goal is to reach 25 percent female representation
in the seasoned professionals and management group by 2025.
DOF Ambassador Program
The DOF Ambassador programme is a platform for employee
career development. The programme oers potential leaders and
executives a structured professional development programme,
which is scheduled over the coming years. The programme
was intended to start in 2020, but was suspended due to
COVID-19 restrictions as it required the cohort to travel
to Norway. In 2021, the program was started with digital
sessions connecting participants from all DOF regions.
Hybrid working arrangement
Hybrid working arrangement introduced to DOF in 2021
as a permanent arrangement. This is regarded by World
Economic Forum as a very important measure to stimulate
female carrier path when taking care of children. A global
survey performed in 2021 gave clear feedback that a hybrid
working arrangement contribute to better work-life balance,
without compromising people’s work performance.
Maritime Trainee
DOF is proud to participate in the Maritime Trainee program
delivered by the Norwegian Shipowners Association (Norges
Rederiforbund). The program was established in 2005 and
has delivered 250 trainees and is one of the leading man-
agement trainee programs in Norway. The Maritime Trainee
program provides solid contribution to the promotion of the
Maritime Industry and all its future opportunities.
The program has a duration of 18 months and combine
working in a leading maritime company with an academic
program. The academic schedule focus on gaining maritime
knowledge across international ocean industries, digitalisation
and new technology development, maritime law, sustainabil-
ity and corporate governance.
In 2021, DOF had two participants of the Maritime Trainee
program.
Our Employees
DOF aims to provide all employees with a safe working
environment where they can advance their careers, develop
their expertise and have a flexible working day. The focus
on DOF’s fundamental values – respect, integrity, teamwork,
excellence and safety – has resulted in an improvement
in individual eciency and productive attitudes among
our employees. DOF has a long-term plan for training and
development of its employees.
Diversity and inclusion have always been of high impor-
tance to DOF. The Equal employment Opportunities policy
ensures a fair recruitment process. Candidates are treated
fairly, professionally and with respect. DOF employs the
most competent person for a position based on their skills,
knowledge and experience.
Our workforce is comprised of 73% full-time employees
and more than 2,500 employees are covered by collective
bargaining agreements (87%).
Diversity of governance bodies and employees 405-1
The Board of Directors in DOF ASA is comprised of 50%
men and 50% women. 25% 30-50 years old and 75% are
over 50 years old. Overview of employee diversity can be
found on page 146 - Diversity of employees.
Benefits provided to full-time employees that are not
provided to temporary or part-time employees, by
significant locations of operation 401-2
Standard benefits to employees can vary depending on the
country’s legislation where DOF operates. The key regions
for the marine and subsea operations are the Atlantic
encompassing companies located in the UK, Norway; South
America in Brazil and Argentina; North America in USA and
Canada; Asia-Pacific in Australia, Singapore. In general, the
same benefits apply to full-time and temporary or part-time
employees, with minor variations in the coverage depending
on the region / country where they are located. A detailed
overview can be found on page 196 in Appendix B.
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Minimum notice periods regarding operational
changes, including whether these are specified in
collective agreements 402-1
The minimum notice periods may vary, depending on col-
lective bargaining agreements, individual agreements and
statutory requirements. A summary of the practices in the
dierent regions where DOF operates is given below.
Asia-Pacific - In Australia, number of weeks not specified
within Modern Awards or Fair Work Act. Regulatory documents
state “…as soon as practicable…” and therefore the employer
must check to ensure it complies with each award of the
eected employees at the time. In most cases one month
notice applies. In Singapore, the notice duration should be
in accordance with the contractual terms mutually agreed
upon, which for DOF is one (1) months' notice. In Indonesia,
the notice period is one month. In Philippines the minimum
notice period is one month.
Atlantic - In UK there is a minimum of one months’ notice
provided for major operational changes aecting employees
and for statutory requirements, notice will be in accordance
with valid regulations.
In Norway, the minimum number of notice period defined in
the relevant national working legislations or in the employ-
ment agreement varies from 4 to 12 weeks. This is defined
in the relevant national working legislations, collective bar-
gaining agreements or in the employment contract. If the
employee is on probation period, a period of notice of 14
days will be applicable.
South America - In Brazil, the period varies depending on
the years of work. In case of contract rescission, the employer
must give one-month notice + 3 days for every year worked
in the company.
North America - In the USA, there is no defined minimum
notice period, however there are limited circumstances which
trigger statutory requirements. In Canada, the minimum
period of notice in terms of changes in employment is based
on a number of factors, including the circumstances of the
change. Notice that may aect employment status is given
based on years of service.
Average hours of training per year per employee 404-1
The average hours per person budgeted is 16 hours per person
for training, with an additional 8 hours for global informa-
tion meetings per annum.
The budget for each person is USD 1000 for training, per annum.
Programs for upgrading employee skills and transition
assistance programs 404-2
DOF have training matrices covering both basic and advanced
training for its workforce. The DOF workbook is the basic and
introductory training covering the most relevant topics. More
advanced training is provided by a various training providers
including Universities and Maritime University college.
Our transition assistance programs come in force when
employees are moved from oshore to onshore or when
there is need for recruitment or new competence. Various
programs are tailored for the transition from one part of
the company to another.
The Manila Accounting Support Hub (MASH) was estab-
lished in May 2019. The MASH team is providing accounting
services to DOF entities in several regions. This new services
relief the DOF accounting from repetitive and manual work
into more advance accounting tasks that are supported by
internal or external training.
There are various severance programs in place and adjusted
to national programs. These programs allow a smooth transfer
to full retirement. This is done as part of Company succes-
sion planning as well.
In case of termination of employment, DOF will seek to provide
guidance to facilitate continued employability outside DOF.
There are arrangements in place to stimulate employees to
higher education combined with employment balancing time
for study and present at work. These programs allow to plan
for skills that help the organisation to meet strategic goals
in a changing working environment.
Percentage of employees receiving regular
performance and career development reviews 404-3
DOF seeks to conduct annually career development reviews
/ appraisal for all eligible employees (depending on opera-
tional area / type of position) together with their managers.
An overview of performance reviews is given on page 193
(Figure 19)
Non-discrimination 406-1
In 2021, there were three confirmed incidents of harassment.
Two incidents resulted in dismissals, and one resulted in
other disciplinary action.
2022 focus within People
The overarching focus in 2022 will be on our safety culture,
through the principle of “safety starts with you” and lead-
ership engagement.
DOF has for many years had its “10 Life Saving Rules”. In
2022, we will adopt the IOGP Life Saving Rules, which are
similar, but will align us with other companies in our industry.
A framework will be established for using digital tools to
perform management visits, audits, inspections etc. This
will allow more frequent interaction between onshore and
oshore personnel and will be used in combination with
physical vessel visits.
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87 %13 %
MenWom en
Employment type - Figure 1
Demographics - Figure 3
1 %
24 %
2 %
Temporary
contract
(Full-time)
71 %
Permanent
contract
(Full-time)
Permanent
contract
(Part-time)
Self-employed
workers
Temporary
contract
(Part-time)
2 %
BY GENDER UNDER YEARS
BETWEEN
AND YEARS OVER YEARS
Female 22.0 % 12.5 % 8.6 %
Male 78.0 % 87.5 % 91.4 %
Total 15.0 % 61.5 % 23.5 %
BY GENDER
STAFF MANAGERS SENIOR MANAGERS
Female
14.8 % 10.3 % 2.5 %
Male 85.2 % 89.7 % 97.5 %
Total 77.8 % 11.8 % 10.4 %
Diversity of employees - Figure 2
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Work will continue with modernising the way operational HSE
activities are performed. The main method to achieve this
will be to digitalise the processes related to vessel specific
checklists, Permit to Work and Risk Assessments, Manage-
ment of Change and Toolbox Talks.
The DOF Workbook will be rolled out with training sessions
globally. Dierent methods of delivering training will be
available: Classroom training, digital training sessions, and
self-study with video presentations.
In connection with upgrade to new version of the Business
Management System, we will use the opportunity to simplify
the system. Our industry is known to be bureaucratic, and
in this context, we must strive to ensure we are not adding
additional bureaucracy by self-imposed requirements.
During the year further work will be focused on the imple-
mentation of the measures in the Cyber Risk Management
Standard, including ship specific risk assessments, raising
awareness and further enhancing the Cyber Risk Management
within DOF. This work will be coordinated by the new Cyber
Security Task Force, supported by executive management.
DOF is an equal opportunity employer and has zero tolerance
for any form of harassment within the workplace or local
communities.
In 2022, DOF will continue to take full advantage of modern
platforms for communication and collaboration which proved
vital to business continuity the last years and in light of
the pandemic. This includes an Enterprise Social Network
solution to improve workforce communication by making it
easier to communicate and allowing interactive communica-
tion. New tools for collaboration will allow for more ecient
collaboration across all DOF entities and regions. A project is
underway to improve the way information is made available
to oshore personnel, by providing company e-mail address
and access to company portal for all oshore employees.
In addition to this, a new talent management platform will
be rolled out for all employees, supporting regular follow-up
and goals throughout the year.
DOF joined the SHE Index in 2021 and will continue the
eorts to balance the teams with regards to and other
relevant parameters. DOF aims to strengthen our capability
to measure and act on diversity and inclusion in leadership
and workforce. As part of this, several activities will be done,
such as global analysis of gender pay gap, and gender distri-
bution in dierent employee categories.
Leadership development
“In the space of business and organisations, leadership is
about getting the employees to work towards a common goal
through motivation, commitment and well-being” – the quote
is taken directly from the DOF Workbook. During the year
a series of leadership training session will be held globally.
The one-day training courses will be focused around the
DOF values, leadership theory and practice, project manage-
ment, communication and financial understanding. Another
important part is to focus on leadership in Occupational
Health and Safety.
Continue fifty-fifty
The fifty-fifty program has been a success so far and will
continue in the coming years. Variants of the concept will
be rolled out globally allowing female talents to strengthen
their self-esteem towards their career, in trustful surround-
ings in close dialogue with executive female leaders and
academia. This is an important activity for DOF to reach
the organisation’s ambitious targets within diversity between
male and female.
Continue ambassador program (next phase / new
ambassadors)
The ambassador program will continue with new talented
employees and adjusted according to our learning and expe-
rience from the first group. The program has shown to be
an important supplement to our retention program and
good arena for DOF’s executive team to meet the new gen-
erations of leaders.
Smarter and inclusive communication
DOF will change the communication profile focusing more on
people and feel-good articles on our intranet and various social
media platforms. Recognising the challenges the industry has
ESG FACTBOOK People
Inspire & motivate Show integrity Solve problems Drive for result Communicate
DOF's leadership principles
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dof integrated annual report 2021
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been through during the two years of pandemic we need an
active approach to stimulate optimism in the organisation. The
fact that the Company is now in a dynamic growth recruiting
new employees and turning strategy towards the renewable
market calls for a smarter and more inclusive communication.
Various means of communication will be tested out. Podcast
that will enhance employees understanding of areas like oshore
wind and Circular economy are some examples. New and
smarter ways of presenting PowerPoint presentations on safety
meetings utilising videos and with artificial avatars presenters
to secure consistency in the message. Finally, DOF will utilise
the potential to reach out in social media. DOF have over
160 thousand followers at LinkedIn. This figure will be used
as inspiration to get higher utilisation of Yammer internally.
Ethics Helpline
During 2022 various initiatives will be made to enhance
respect in normal interaction in the Company. The analysis
of situations and reports from our Ethics Helpline is not
acceptable and in breach with our Code of Conduct. This
will be addressed in training and campaigns. Some initia-
tives will be organised from corporate and others regionally.
New Code of Conduct – strengthen respect
The Code of Conduct will be strengthened with some new
chapters like circular economy, life below water and biodiversity.
Examples in the dilemmas will be on relevant situations like
use of plastic and other examples as dilemma when client ask
us to do high speed on a boat to reach shore when no one
is expecting us. This results in extra tons of diesel burned
without good purpose and consequently unnecessary GHG
emissions. The common theme across the UN SDGs is human
rights; this is addressed in the current Code of Conduct and
will be even clearer in the new version of the Code.
Future goals within People
Safety awareness is a never-ending process, and our goal
is to be recognised as the safest provider of subsea and
vessel services to our growing international and global client
base. The Watertight Integrity Test, launched in our code
of conduct, starts with a simple question; “Is it Safe?” If
the answer is no, action must be taken.
As personnel join the Group, we ground them in our values-
driven approach and provide them with the necessary practical,
and theoretical training to appreciate the importance of
acting in line with the values and principles.
We continue to enhance safety culture onboard our vessels.
DOF issued the first HSEQ Workbook in 2012. A new Workbook
was introduced in 2020 and expanded beyond HSEQ, to cover
all aspects of the company and published on DOF’s website.
The DOF workbook is the backbone of training within the
Group for the next 5-6 years. Through a holistic approach,
employees will be exposed to training ranging from induction
to the Company, our values, and risk assessment approach,
to more advanced modules like project management.
To build on the strengths of teams so the eorts of one
team can be quickly replicated or adapted in another region
is a key concept. The ability to harness the creative talents
from a region, by incorporating their solution into a potential
business opportunity in another region, will enable DOF to
respond to clients with timely, proven solutions and resulting
in a cost-eective outcome for DOF and its clients.
DOF will increase the use of Subject Matter Experts selected
from appropriate regions to provide support to corporate and
project related teams. The implementation of the ‘modern
toolbox’ will support this eort.
Various initiatives in the Human Resourcing areas of resourc-
ing, attraction, privacy compliance, retention and development
of employees will be executed. We remain committed to
sourcing talent and developing employees and to adapt to
market changes. In addition, enterprise social media platforms,
both internal and external, have been implemented to improve
communication with our workforce and external stakeholders.
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Planet
Our company value that is directly connected to planet:
RESPECT
“Respect underpins everything we do and every interaction we have. Respect
for people: our colleagues, our customers, and our business partners. As
global citizens we are socially responsible, we respect the individual, the
local customs and cultures of our various markets. Acting with care and con-
sideration is central to our wellbeing and safety and ensures we minimise
our environmental impact.”
The Group aims to create an environment of empathy, mutual respect
and understanding amongst all stakeholders. DOF is an equal opportunity
employer and does not tolerate any form of harassment or discrimination
within the workplace or local communities where we operate.
We operate in an evolving market. It is vital for DOF to develop in the energy
sector, together with our key partners, in line with the targets articulated
in UN’s Sustainable Development Goals.
A key to meeting stakeholders' expectations is the implementation of new
technology and digital solutions to reduce GHG emissions and become more
ecient. An objective for the next 3-year strategic period and a driver for
value creation. As a responsible organisation and through Respect we aim to:
•
Maintain our equal opportunity employer performance: we will not tolerate
any form of harassment or discrimination within the workplace;
•
Operate responsibly at sea, with minimal impact upon the environment;
• Reduce our environmental impacts by delivering energy eciency and
the well-established zero-mindset to any discharges of harmful material
into the sea, making DOF an attractive business partner;
• Adapt to the global communities’ changing expectations to climate
change and pollution.
Within Planet, we apply our values
to define significance,
guide our approach, assess our results, and set the ambitions into our future.
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2021 activities within Planet
Environmental Performance
Also, an aspect of respect, Environmental Performance,
is governed by the DOF Environmental Impact Policy. It
reflects corporate intentions, principles of actions and
aspirations to improve environmental performance.
Responsibility for ensuring that DOF is committed to
minimising its environmental impacts in line with the
‘Polluters Pays Principle’, ‘Precautionary Principle’ and
‘Duty of Care’, Energy Efficiency and Climate Impact lies
with the Board of Directors.
Since 2010, DOF has reported key environmental performance
through CDP and the reporting has directly influenced the
development of our Business Management System and the
programs established to manage our environmental
performance.
Our Environmental Management System (EMS) ensures
that DOF effectively manages our operations and strives
for continual improvement of our environmental performance.
Using technology to reduce fuel consumption
DOF has well established systems and new initiatives
operating in parallel to deliver fuel eciency and reduced
GHG emissions.
Implemented in 2012, the Ship Energy Efficiency Management
Plan (SEEMP) is vital to our EMS. The SEEMP was
developed in partnership with DNV and aligned to the
guidelines set out by the IMO marine environmental
protection committee. SEEMPs are applied across the
whole fleet to plan, implement and monitor the measures
required to maximise vessel efficiency.
All DOF’s vessels operate with Marine Gas Oil (MGO).
DOF complies with the regulations in the industry,
especially with IMO and MARPOL Annex IV, Regulation
14, regarding strict measures addressed to ship owners
to control the emissions of NOx and SOx from their
ships, in Emission Control Areas (ECA) where ultra-low
sulphur fuel is required.
Several vessels are fitted with technology reducing fuel con-
sumption and emissions.
• DOF has for more than 15 years focused on reducing NOx
emission to air: the main contributor is the instalment of
Selective Catalytic Reductions (SCR) systems which can reduce
NOx emissions up to 90%. SCR is a means of converting
NOx with the aid of catalyst urea into N2 and Water.
• The diesel electric hybrid propulsion system allows greater
operational flexibility and reduces energy consumption, CO2
emissions and maintenance costs. This propulsion system
is ideal for DOF’s combined anchor handlers and oshore
construction vessels.
• Improvements, particularly on hull design, have been made
through close industrial cooperation with main suppliers.
This experience transfer ensures continuing enhancement
of technology into the future.
0
Spills over 50 liters
Number of unrecovered spills in 2021.
23.9
CO
2
emissions
Emissions per operational day in 2021.
(tonnes CO2e)
CDP
DOF has reported to the Carbon
Disclosure Project since 2010.
Energy efficiency
DOF is continuously monitoring and
improving the Ship Energy Efficiency
Management Plans and establishing eco
speed curves for optimal sailing speed.
New tools
DOF is working together with
Kongsberg Group and Innovasjon
Norge to develop new technology for
optimal energy use onboard vessels.
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ESG FACTBOOK Planet
•
DOF deployed cloud-based analytics software system success-
fully on all vessels in 2021. Maress analytics allows decision
makers on shore and on the bridge to make more informed
decisions on how to reduce emissions. Maress allows DOF
to fully understand the emissions from individual vessels,
and for the fleet as a whole. Due to the smart re-use of
existing data the system can be rolled out quickly and was
operational on the whole fleet in Q1 2021.
•
The research project partnership with Kongsberg Maritime,
SINTEF Ocean and NORCE to develop of a new generation
Decision Support System (DSS) for oshore vessel opera-
tions were finalised in 2021 and is now undergoing final
adjustment to be rolled in the fleet.
•
Developing shore-side electricity connections for port stays
has delivered considerable environmental benefits by utilising
renewable energy reducing carbon dioxide, sulphur dioxide
and nitrogen oxide emissions to a minimum. Modifying
vessels for this technology is continuously evaluated based
on the availability of shore-side connections where our
vessels operate.
Spill avoidance is captured by KPIs and as a ‘bearing
element’ in the ISO 14001 certification is audited regularly.
DOF’s maintenance regime incorporates spill avoidance
objectives in order to reduce the risk of environmental
impact from incidents.
All vessels have a Shipboard Marine Pollution Emergency
Plan (SOPEP/SMPEP) which provides guidance to the
Master and officers on board the vessel as to the steps
to be taken when a pollution incident has occurred or
is likely to occur. The plan is reviewed annually, and a
regular drill held.
DOF’s internal procedures for bunker and fuel testing
ensure control of fuel supplies to its vessels. The main
objective is to ensure good quality and uncontaminated
fuel supplies to offshore installations, in accordance with
Charterer requirements. All contracts between DOF Marine
and charterers specify the quality of the fuel as per ISO
8217, Bunker Fuel Standard.
Innovation & climate resilience
DOF conducts operations in compliance with best practice
techniques and principles, worldwide. As such, DOF
standardises its global approach to meet the highest
requirements of legislation and the expectations of external
parties both locally and internationally.
Risk Identification and Assessment analysis of where we
are most likely to deviate from these commitments and
what the risks are should this happen, is undertaken.
Control measures can be identified to ensure that our
levels of exposure are acceptable for all stakeholders.
2021 results within Planet
Respect underpins the flexibility we have in our organisation.
We can call on specialist individuals who because of the
common respect for each other, have a commitment to
meet shared goals. Without mutual respect, the high level
of coordination and cooperation required to address
corporate or operational challenges is more difficult. DOF
has a proven record of adapting assets quickly and
developing operational solutions to meet difficult and
time sensitive challenges from their clients that delivers
successful project execution outcomes. The following
reporting concerns all DOF vessels and all environmental
initiatives in the Group.
Energy Consumption within the Organisation
and outside the Organisation 302-1 | 302-2
The majority of DOF’s energy consumption comes from
non-renewable sources, which is attributed to fuel consumption
on our vessels. The energy consumed in our oces comes
from both renewable and non-renewable sources, depending
on the energy infrastructure in the area where the oce
is located.
Figure 10 in Appendix B.4 indicates the organisation's
energy consumption in joules. Electricity consumption
per country is detailed in Figure 11, also available in
Appendix B.4.
302-3 Energy intensity
In 2021, the energy intensity for fuel consumed (Scope 1
vessels) was 332.5 GJ per operational day.
Managing Fuel Consumption and Emissions
to Air (Carbon Dioxide Emissions)
305-1 I 305-2 | 305-3 | 305-4 | 305-5
The Environmental Impact Policy sets out clear aspirations
to ensure that our operations have minimal impact on
the environment. This requires DOF to calculate and
anticipate potential challenges before activities take place
through risk identification processes, to ensure that the
environmental impacts are understood and reflected in
our activities.
From reporting year 2021, DOF uses CEMAsys.com for
carbon footprint management. The system enables gathering
and management of data connected DOF’s climate change
impact, according to the international Greenhouse Gas
Protocol.
The system allows DOF to report its carbon footprint
with a new degree of accuracy and integrates current
conversion factors for emissions and energy consumption.
In addition, the reporting of Scope 1 and Scope 3 emissions
for vessels is now more accurate.
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For vessels owned by Joint Venture, DOF will report
emissions equivalent to % ownership in the JVs as agreed
with JV partner. This is to avoid that both companies
report 100% emissions on these vessels, which in
consolidated reporting would lead to inaccurate figures.
For the activity-based metric, tons CO2 per operational
day, the figure has been recalculated with the assumptions
for the 2021 reporting, to provide comparability year by
year. The historical figures for 2020 and earlier will
consequently vary slightly from what has been reported
in previous years.
Data regarding Scope 1 concerns vessel fuel consumption
for DOF vessels (including third party vessels) where
DOF is in operational control. The resulting CO2 emissions
are detailed in Figure 12. During 2021, the total Scope
1 emissions were reduced by 6.6% (26,012t CO2e) compared
to 2020. However, the emission per operational day
(intensity target) increased by 2.1% compared to 2020.
This is mainly attributed to many vessel movements
between regions, as vessels needed to be reallocated due
to COVID-19 effects on operations.
Scope 2 data relates to electricity and heat consumption
in buildings where DOF has offices or warehouses, and
electricity for vessels with shore power connection
capability. Scope 2 accounts for 1% of DOF's total CO2
emissions. DOF has decided to use "The Greenhouse Gas
Protocol: A Corporate Accounting and Reporting Standard
(Revised Edition)" to calculate the CO2 emissions originating
from onshore electricity consumption (Appendix B.4,
Figure 12). From 2021 going forward, Scope 2 emissions
will be reported market-based.
Data regarding Scope 3 concerns fuel vessel consumption
for DOF vessels (including third party vessels) where the
end client is in operational control. Scope 3 also includes
business travel and incinerated waste onboard vessels.
During 2021, the total Scope 3 emissions were reduced
by 12.9% (14,449t CO2e) compared to 2020.
Total number and volume of significant spills
DOF considers any loss of secondary containment over
50 litres to be a significant spill. This is in line with
the definition from IMCA SEL-010. The target is to have
zero significant spills to external environment.
In 2021, there were no loss of secondary containment
spills that exceeded the 50-litre threshold to environment.
One incident of loss of primary containment was recorded
where approximately 600 litres of fuel spilled on deck
during bunkering operation. However, loss of secondary
containment was prevented by the mitigative actions taken
by crew on board, prevent release to the external
environment.
During the year, 36 environmental incidents were reported.
This results in 4.10 incidents per million man-hours. This
is slightly above the KPI of less than four spills per
million man-hours. The majority of spills are very small
spills related to ROV operations.
DOF experiences variance in the quantity of spills due the
broad nature of our activities. Within marine operations,
we tend to see larger spills that are contained on deck to
prevent loss of secondary containment. In subsea operations,
there is generally very small quantities of substances released.
However, these releases often stem from subsea equipment
in operation which make it more likely to be released directly
into the environment and become defined as loss of secondary
containment.
It is challenging to record the exact volume of liquid spilt
as most spills are contained before being released (secondary
containment) by marine spill kits and protocols. Measuring
the volume is based upon individual’s best judgement at
the time of the incident, often in rough weather and
darkness. The total volume of all spills during 2021 was
1,009 litres, whereby 82 litres was considered loss of
secondary containment. The KPI for the area set to be
zero, but the result is 9.34 litres with loss of secondary
containment per million man-hours.
Compliance 307-1
In 2021, DOF has not been subject to any significant
fines or non-monetary sanctions for non-compliance with
environmental laws and/or regulations.
Waste generation and significant waste-related
impacts 306-1
DOF generates both hazardous and non-hazardous waste
as part of routine vessel operations. Generation of waste
(i.e. non-hazardous), is the by-product of a number of
activities listed in the table including and further classified
in two different categories (see tables below and on
following page).
Various activities
• Accommodating crew members on board vessels
• Recovered materials subsea as part of contracted scopes of
work or marine duties
• Maintaining vessel equipment
• Packaging from goods received via supply chain
• Replacing or refurbishing end-of-life products
Waste categorisation part I
• Plastics
• Operational waste
• Food wastes
• Animal Carcass(es)
• Cooking oil
• Fishing gear
• Electronic waste (E-waste)
• Domestic wastes (e.g., paper products, rags, glass, metal,
bottles, crockery, etc.)
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Part II is applicable to those DOF vessels carrying bulk
cargo, as required by contracted SOW
• Solid bulk cargo shall be classified per criteria in appendix
I of MARPOL Annex V, and shipper shall declare whether
cargo residues are harmful to the marine environment.
• Cargo residues which are not harmful to the marine envi-
ronment (non-HME) have less strict discharge requirements
then cargo residues which are harmful (HME).
The frequency of one-o, acute waste related incidents
causing significant environmental damage is deemed low by
the nature of our core activities.
Management of significant waste-related impacts 306-2
Vessel operations are governed by MARPOL Annex V,
whereby receptacles are to be made available to segregate
vessel generated waste.
MARPOL Annex V vessel segregation
• Paper / Board
• Glass
• Wood
• Plastic
• Metal
• Organic food waste
• E-waste, Hazardous waste, batteries, aerosol, bulbs, printer
cartridges
• Health Service & Other Possible Infectious Waste
• Mixed, Contaminated or generally
• Non-recyclable Waste
Each vessel operates according to a Garbage Management
Plan outlining specific segregation requirement. Garbage
Management Plan also outlines the use of vessel waste
management equipment to ensure that waste impacts are
mitigated, this also includes operational procedures.
Segregation requirement
• Food grinder in the scullery
• Garbage compactor
• Glass crusher
• Incinerator
• Replacing or refurbishing end-of-life products
Waste-related data is logged in the vessel's Garbage Record
Book in accordance with MARPOL Annex V and the data
is available for monitoring by the onshore support
organisation.
All vessels also have a dedicated spill prevention management
plan. This outline controls such as use of spill kits,
scupper plugs and key roles during a loss of primary
containment on deck or secondary containment overboard.
Whilst the garbage management plan controls ‘routine’
waste generated offshore, DOF also has measures to
control Project specific hazardous waste generation. This
type of waste is generated on a project-to-project basis
and managed through project management and HSEQ
functions. Types of waste generated, include recovery or
handling of products/substances that have the following
contaminants.
Project specific waste generation
• NORM
• BTEX
• VOC
• Mercury
• Hydrocarbons
Waste-related data is logged in the vessel's Garbage Record
Book in accordance with MARPOL Annex V and the data
is available for monitoring by the onshore support
organisation.
Contaminants of this nature require specialist planning
of deck arrangements, including double bundled containment,
spill emergency response arrangements and personnel
monitoring and protective equipment. Where project of
this kind take place, it is likely that DOF operates under
Field Environmental Plans approved by both the operator
and/or state governing authority.
Key administrative controls are also in place to manage project
generated hazardous products, including but not limited to;
Identification of significant environmental aspects;
•
Risk Assessment of potential environmental impacts through
HAZID/HIRA processes;
•
Task plans to control work activities and minimise likelihood
of loss of primary/secondary containment;
•
Client, government and specialist approvals/agreements or
reviews as part of project authorisations.
Future goals within Planet
Emissions and Energy Reduction
DOF's ability to manage GHG Emissions is a key component
of the organisation’s ESG profile. Providing a vessel fleet
and services with reduced GHG emissions can become a
value proposition for clients and investors or negatively
impact upon competitiveness of the organisation against
peers. The main concern is DOF’s ability of to meet
changing stakeholder expectations associated with Greenhouse
Gas emission from ships, including Nitrogen Oxides (NOX),
Sulphur Oxides (SOX) and Particulate Matter (PM) in
harbour areas.
Active management and continual reduction of fleet-wide
energy inputs and GHG emissions is a significant material
concern. Technology and Digitalisation is seen as a key
enabler of managing this material issue.
ESG FACTBOOK Planet
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Energy Management
Energy Management is considered in DOF as the process
of identifying and bring forward initiatives, actions and
opportunities, monitoring, and measuring the quantifiable
benefits to the DOF Group’s strategy of reducing emissions
and reducing energy consumption.
Extended life of assets is a vital part in a transition
period where there is a huge uncertainty of which green
energy carrier will be sufficiently available. Consequently,
the most important work in a wider energy management
perspective, is the daily maintenance our good crew
perform.
DOF Group will continue and increase capabilities and
technology available to measure and gain insights into
energy consumption and emissions. New digital technologies
and products will deliver new insights into how and
where we use energy. These insights will enable us to
identify areas for improvement in 2022:
The “Intelligent Efficiency” product has been under
development since 2018. This is planned to be rolled out
on three to four vessels in 2022, pending final project
evidence of saving. Important bi-product delivery of
“Intelligent Efficiency” is the installation of “digital fuel
measurement and reporting” software solution which
avoids the requirement for manual registration of fuel
consumption by workers offshore. Furthermore, a vessel
performance shore portal /dashboard will follow the roll
out of the “Intelligent Efficiency” solution.
DOF will specify the company requirements for possible
implementation of hydrogen fuel cells combined with
batteries on selected vessels. We will also investigate use
of ammonia as a new zero/low-emission alternative to
traditional fuels.
It is also planned to install battery / energy storage system
on 2 vessels in 2022.
Science-based Targets
DOF recognises the importance of aligning our emission
reduction targets to Paris Agreement goals. This approach
is known as ‘Science-Based’.
A project will be initiated together with TERRAVERA
Foundation to model a structure to DOF's approach to
gather scope one, two and tree emissions. This will
provide DOF with a clearly defined pathway to reduce
GHG emissions and align with Stakeholder expectations.
DOF will work close with students from the technical
university, NTNU and the business university NHH. The
students will be guided by various professor within the
area in close cooperation with DOF and TERRAVERA.
The objective of the project is to build a model that is
suitable for scope 1, 2 and 3 emissions.
DOF has formed a strategic alliance with Kongsberg
Maritime Group to align efforts in reaching science-based
targets on executive level, for scope 1, 2 and 3 emissions.
In this perspective, DOF scope 1 is scope 3 for Kongsberg
Maritime Group, and vice versa.
Establishing Science-Based Targets shall provide a clear
pathway towards Net-Zero. During first half year a proposal
will be presented to Board of Directors to publicly
announce DOF as a Net-Zero emission company by 2050.
Single-use Plastic
As a steward of the environment, DOF recognises that
it is no longer acceptable to utilise single-use plastic
products. This too is reflected as a Material Issue for
the organisation. Unfortunately, to date, we still see
unacceptable quantities of single-use plastics being procured,
used offshore and subsequently disposed. This linear flow
of materials seen within the industry is contributing
towards what the UN Environmental Program describes
as a ‘Global Pollution Crisis’.
In 2022, DOF will be playing our part in addressing this
industry-wide environmental challenge with a series of
systematic measures to phase out employee generated
single-use plastic from our day-to day offshore operations.
In addressing this material concern, DOF shall take
inspiration from our hierarchy of control by first seeking
to eliminate the need to procure single-use plastic products
or finding reusable alternatives. Where use of single-use
products is unavoidable, we shall then endeavour to
substitute plastic with non-plastic alternatives. The last
resort is then to recycle any plastics we do use to ensure
material value is maintained.
In our 2022 campaign, DOF shall form a strategic alliance
within and outside of the industry to help expedite and
scale-up our efforts to phase-out single use plastics. This
shall be supported by a robust Group Charter outlining
management measures, in addition to quantifiable inventories
to track progress. These measures shall be verified as
part of ongoing audit criteria throughout the group.
Biodiversity and Marine Pollution
Biodiversity is the variety of life on Earth and the natural
patterns it forms. For DOF, what we see in our oceans
is the result of 4.5 billion years of evolution and increasingly
human influence. Ecosystem services such as food, fresh
water, air, and climate regulation are commodities people
and businesses rely on but depend on biodiversity
conservation. Anthropogenic changes to ecological systems,
whether planned or unplanned, are damaging not only
for natural capital but also adversely affect social and
economic development.
In 2021, when DOF mapped out revised material topics,
‘Ecological Impacts / Biodiversity’ was identified as a
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ESG FACTBOOK Planet
creates a more sustainable Value Chain, we need to adopt
a ‘Circular Economy’ mindset in which we keep resources
in use for as long as possible to extract the maximum
value from them whilst in use. The principle of recovering
and regenerating materials is then utilised to ensure we
can extract the most value from whatever resources we
have when it reaches the end of life. In doing so, DOF
reduces the need for raw materials mitigating its company
carbon intensity and footprint.
DOF understands that it needs to decouple its economic
activity from material and energy consumption by employing
circularity principles throughout its Value Chain and
existing processes.
A 3-year Circular Economy program shall be established
by DOF that takes inspiration from best practices and
frameworks such as the MacArthur Foundation. The 3-year
Program shall map circular opportunities throughout the
value chain, establish a policy strategy, develop a circular
transformation route and areas of collaboration and outline
a mechanism to review progress.
Ship Life Cycle Management
Understanding and optimising the data behind DOF’s
assets over its Life-cycle is the most effective and
meaningful way of achieving circularity. This entails
creating an inventory analysis of material inputs and
outputs over the lifespan of our most significant product,
vessels.
The process and outcome of understanding material flow
for a vessel will present unique opportunities to DOF
across the vessel phases of new-build, expected operational
life and extended life of the asset. Grasping these
opportunities is essential to DOF in building resilience
against an evolving industry landscape of decarbonisation,
growing global fleets, regulatory changes and global
sustainability transition. The illustration below visualises
some the Value Propositions associated with an increased
understanding of DOF Vessel Life Cycles.
risk for ‘Life Below Water’. The main areas of concern
relate to DOF’s ability to prevent the introduction of
invasive species through multinational vessel operations
and minimising the likelihood and severity of unplanned
discharges of hazardous materials.
While national and international regulatory frameworks
exist for these topics, DOF wants to go beyond compliance
by establishing further improvement initiatives. This year's
improvement measures are related to generating greater
company awareness of the biological interactions of our
activities and reinforcing existing operational controls
through increased governance mechanisms.
To ensure greater awareness, DOF shall establish ‘Life
Below Water’ educational materials for operational personnel.
This will correlate known biodiversity challenges, such
as biofouling, spill prevention and marine plastic production
to DOF operations and what we are doing to address
these interactions. Communication mechanisms shall
include Safety Themes of the Month and formal training
media.
Bolstering the governance and assurance, DOF shall deploy
more stringent reviews on marine pollution and biofouling
controls. This will involve scrutinising key documents
such as Biofouling and Garbage Management Plans with
increased frequency and rigour through inspections and
audits. DOF has also expanded the criteria for our most
comprehensive investigations, ensuring that biodiversity
or marine pollution incidents are thoroughly examined,
lessons are extracted, and we can prevent future
re-occurrence.
DOF believes the cornerstones of Awareness and Governance
are critical to improving our already industry-leading
practices for Life Below Water.
Circular Economy
The concept of Circular Economy is relatively new to the
Industry and DOF, but it is a game-changer. As DOF
The “Intelligent Efficiency - Industrialise”
product is expected to enable reduction in
fuel consumption reduction of 5 - 10%,
depending on vessels operational profile, by
providing insights and real time guidance to
vessel crew in how they can possibly improve
operation of the vessel and deliver optimum
fuel efficiency.
Intelligent Efficiency - Industrialise
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Remote Operations
Remote Operations can be considered as the ability of
workers to perform their duties without being physically
present on board a vessel, reducing our environmental
footprint.
The range of benefits must be considered holistically,
and not limited to a traditional assumption that remote
operations will automatically reduce personnel costs.
Personnel remuneration and worker contractual considerations
are out-with the scope of technical solution delivery.
The benefits which can be realised from remote operations
are operational in nature and primarily related to flexibility
and optimisation of resource allocation. Examples include:
• One subject matter expert located onshore can provide
live technical support and data services to multiple vessels.
• A vessel can switch from general FSV duties to ad-hoc
subsea inspection mode, without the requirement to mobilise
a team of inspectors.
• Reduction in travel and quarantine costs with associated
health and safety benefits.
• Remove the requirement for specialist sta to be oshore
for a longer period than necessary, e.g., a small inspection
scope should not generate a long trip for a large team due
to limited port calls.
DOF Subsea started using the “Survey in The Cloud”
solution in mid-2020. This platform will be augmented
to give real time access to onboard subsea project systems
such as survey, inspection, voice communications and live
video. The following activities will be done in 2022:
The “Survey in The Cloud – Remote Operations” is the
evolution of “Survey In The Cloud” and will be implemented
on four vessels in 2022. This will be done after successful
pilot on a vessel and creation of appropriate governing
support documents.
Progress testing of Remote Digital Class and DP services
which will allow certain surveys required by Class to be
done from shore with support from the crew.
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Prosperity
Our company value that is directly connected to prosperity:
EXCELLENCE
“Excellence in everything we do. We are resourceful and responsive to our customers’
needs; innovative in the solutions we apply to everyday problems. We safeguard our
individuality and the qualities that set us apart from our competitors, protecting
our reputation and the professional trust we have built, we do not walk away from
our commitments.”
Subsea and Marine services are the core value generating work of our business.
Building strong relationships and ensuring we have reliable assets, capability and
technology to support our customers in the evolving subsea and oshore energy sector,
is key to our future and therefore benefits all stakeholders. The ‘Shaping DOF for the
future’ strategy focuses on reshaping the organisation to reflect the market outlook.
Clearly, operational and technological excellence are strategically important to the
organisation’s future value creation and closely aligned to the delivery of material
issues Product Reliability and Customer Service.
Excellence is essential in our corporate governance and management activities and
in the provision of a reliable, ecient assets base; professional workforce and high
standard internal controls. The Group’s improvement program is important in
continuing to successfully dierentiate DOF from its competitors. DOF is committed
to continuously improve the organisational performance in all aspects of its operations,
including management of processes, knowledge, resources, and change.
Within Prosperity, we apply our values
to define significance,
guide our approach, assess our results, and set the ambitions into our future.
The interaction and synergies between DOF's different product offering need to
continue. The focus on DOF as a "one stop shop" within offshore wind, offering
a total life of field business, needs to be strengthened. Digitalisation & technology
development will be a central force to utilise our unique fleet of vessels, technologies,
and competence, where equipment will be utilised and adjusted within different
segments like SURF and offshore wind. Survey is a key competence with strong
interactions towards wind and mooring.
Offering a "one stop shop" for offshore wind
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2021 activities within Prosperity
Continuous Improvement
DOF monitors operations so areas for immediate or future
improvement programmes can be identified to provide
our employees with the best possible tools and services to
perform their roles.
Alliances and partnerships are alternative options that can
provide DOF and its clients with specialised services or
products currently unavailable.
Product reliability
For DOF, product reliability is providing the best service to
our customers with no delays. DOF is committed to deliv-
ering quality products and services by working with our
customers to understand the needs of their business and
consistently meet their requirements.
Product reliability is achieved through the Integrated Man-
agement System (IMS) and Business Management System
(BMS). DOF is now undertaking larger and more complex
projects and contracts, as well as investing in newer and
more advanced vessels.
Customer satisfaction
Customer satisfaction is measured through feedback surveys
and managing long-term contracts and winning repeat
business. It is best characterised by delivering services of
the best quality, at the best cost, at the right time and to
the required location.
Maintenance Management System
The Maintenance Management System is implemented on
all DOF vessels and for subsea assets, as well as third party
vessels on long term charter.
2021 results within Prosperity
Our industry is experiencing substantial change, disrupting
the way it has traditionally worked. New expectations and
requirements appear rapidly, and aect all areas of business,
from external environment to operational performance and
business ethics.
DOF must keep pace with these changes, work within our
values and business strategies, and involve all interested
parties. A Digital Transition Strategy was commissioned by
the Chief Operating Ocer, to outline the main roles and
responsibilities that the executive team will need to embrace.
The merger of DOF Management and Norskan, as DOF Marine,
has now settled and the new organisation is continuously
reviewing its key business systems and processes to be in
alignment with current best practice models.
The Subsea organisation has initiated several projects with
the aim to improve our product deliveries significantly, with
focus in three main areas: ROV operations, diving opera-
tions, and survey.
99%
Vessel uptime
Available operative time for vessel in 2021.
99.3%
ROV uptime
Available operative time for ROVs in 2021.
Continuous
Improvement
DOF has built its management systems
on the Plan-Do-Check-Act principle.
"Maintenance
the RITE way"
The programme aims to build a world-class
maintenance culture in the DOF Group.
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2021
The ultimate proof of excellence is in our reliability figures.
The vessel uptime figure for 2021 was 99%. The equivalent
figure for ROV uptime was 99.3%.
Even though the pandemic has brought many practical chal-
lenges, there have been docking activities in 2021 as normal.
There have been no major issues with dockings, and a key
success factor has been the work that was done in 2019 to
improve the processes related to docking activities.
During 2021, it has not been possible to continue with the
“flying squad” due to travel restrictions. The concept has
proven to be a success and will recommence when practi-
calities allows it. This team travels around the global fleet,
assisting the vessel crew with performing periodical main-
tenance on-board instead of taking the vessel to shore. This
leads to more availability for our clients.
Maintenance Management
A successful pilot program with Karsten Moholt and the
skAIwatch system was performed in 2020. Throughout 2021
this system was implemented on the entire fleet. The system
collects data on machinery onboard the vessel, and presents
it in one common place, to quickly identify equipment that
needs maintenance attention.
A focus area for Maintenance Management in 2021 has been
quality control and planning, resulting in improved main-
tenance performance and cost eciency. Maintenance the
RITE way as a program will continue.
Product reliability results, Subsea ROV Operations 2021
Executive management visited Brazil in late 2019, for con-
sultation and review of DOF Brasil ROV performance. The
result of the review has been worked on throughout the last
two years, and improvement activities have been identified
for 2022 and part of the Group Improvement Program. A
Senior VP for Remote Systems has been appointed and is
now part of the Digitalisation and Technology function in
DOF. in close of the team will work in close collaboration
with Chief Operating Ocer to improve all aspects with
ROV operations.
Product reliability results, Vessel Operations 2021
The new Marine Operations manual was launched in 2018.
During 2021, the manual has been subject for smaller adjust-
ments. There have also been various activities to secure full
implementation of the manual.
The structure for follow up of activities related to DP
incidents has been strengthened, with appointment of a
global DP authority, as well as a deputy in Brazil. Two DP
incident reported and four event in 2021. One incident led
to drive o from position but no damages. The other lead
to light contact to a fix installation. No personal injuries,
no damage on the installation, some damage on the vessel
that was repaired within a week. This incident still under
investigation.
Operational uptime DOF1
See Figure 4, page 159.
Customer satisfaction DOF 2
DOF uses dierent means to monitor our customers’ per-
ception of whether their needs and expectation have been
fulfilled. Systems are in place for obtaining, monitoring and
reviewing this information.
The results are analysed and used as the basis for our yearly
improvement plans as required. Our commitment is to deliver
quality products and services, safely and DOF works with
its customers to understand their needs and meet their
requirements.
DOF’s customer satisfaction forms are the main source for
monitoring our customers’ feedback and cover all phases of
our operations.
There were no formal customer complaints registered during
2021. However, some responses in customer feedback have
triggered internal non-conformity processes.
From 2020 to 2021 there were no major changes in the
average ratings in the customer feedback.
We have continued to receive feedback from several clients
expressing recognition of DOF’s ability to maintain high
standards of quality in deliveries despite the challenges with
COVID-19. Even more importantly, clients have commended
DOF’s plans and measures implemented throughout mobilisa-
tion and on vessels to prevent infection and keep everyone safe.
Proportion of senior management hired from the local
community 202-2
In DOF, the significant areas of operations are considered
to be the four regions: Asia Pacific, Atlantic, South America
and North America. Each region has a Senior Management
Team that includes managers of the business units within
the region and is led by regional EVP. In 2021, the propor-
tion of senior management hired from the local community
was as follows, where “local” is defined as the country of the
business unit where the manager is employed:
• Asia Pacific: 87.5%
• Atlantic: 100 %
• North America: 100%
• South America: 100%
Operations with significant actual and potential
negative impacts on local communities 413-2
DOF does not have indication that any of its operations has
significant actual and potential negative impacts on local
communities.
ESG FACTBOOK Prosperity
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dof integrated annual report 2021
Results (continued): EXCELLENCE
DOF 2 - Customer Satisfaction - Figure 5
Average ratings DOF Subsea customer feedback (received during 2021) - ratings range from 1-5, where 5 is the highest rating.
Average ratings DOF Management customer feedback (for 2021) - ratings range from 1-5, where 5 is the highest rating.
#1 - Mobilisation
#2 - Engineering
(Project & Design)
#3 - Client's Objectives
(Understood & Achieved)
#4 - Client Relationship
#5 -
Schedule Management
#6 - HSE Management
#7 - Site Operations
#8 - Overall Project
Management (including
communications)
#9 - Overall Performance
#10 - De-Mobilisation
Overall Survey Rating
2021
4.1 4.2 4.4 4.3 4.4 4.1 4.1 4.4 4.3 4.1 4.2
2020
4.2 4.3 4.3 4.4 4 4.2 4.5 4.3 4.3 4.1 4.3
HSE Management
Co-operation
Flexibility
Dialogue
Delivery of service
Cost
Results
Added value
Overall Survey Rating
2021
3.9 4.5 4.5 3.8 4.2 3.5 4.2 4.1 4.2
2020
4 4.3 4.3 3.8 4 3.7 4.2 4 4.1
DOF 1 - Operational uptime - Figure 4
QUALITY INPUTOUTPUTS
GLOBAL TARGETS
METRICS
Available operative time for VESSEL – Time in % when
vessels are in an operating mode and under contract
with a client = < 2 % Down time for client due to
vessel availability.
> 98.0 % 99.0 % 99.7 % 99.4 %
Available operative time for ROV – Time in % when
ROV are in an operating mode and under contract with
a client = < 2 % Down time for client due to ROV
availability.
> 98.0 % 99.3 % 99.0 % 98.9 %
159
dof integrated annual report 2021
2022
2022 focus within Prosperity
Respecting development and support of the
communities where we operate
A principle of our business model is to train and maintain a
dedicated core crew on all our vessels. This creates value by
retaining operational and vessel knowledge between charter
or project crew changes and leads to a higher level of safety,
eciency and quality of services, benefiting the Group, our
clients and our workforce. The program creates value for
individuals, their families as well as local governments and
society by creating jobs, assisting in enterprise development
and technology transfer to local communities.
DOF’s global maritime cadetship program combines the princi-
ples of a fair return for our local communities with building a
skilled and sustainable workforce. This program gives cadets a
structured path to gain qualifications and a long-term livelihood.
Involvement in the Norwegian Training Centre - Manila (NTC)
cadet program has been part of DOF’s strategy to provide
highly qualified ocers to our fleet. The courses extend
across the complete area of vessel operations. The aim is to
train seafarers to the highest standard of safety and quality
and promote excellence in maritime operations worldwide.
DOF joined other Norwegian ship-owners who founded AEPM
in Brazil to provide opportunities for young adults to start
maritime careers via ordinary seamen courses.
Community support is focused on promoting education,
culture and sports through a number of specialist organisa-
tion’s structured programs, primarily in Brazil and Philippines,
to give underprivileged children a chance for a better future.
For example, DOF provides Sponsorship to the Renascer foster
institute (Brazil), an organisation which cares for children of one
to five years old, presenting them new life perspectives through
sports, art and music, providing them with a home, food and shelter.
We remain very close the community of Comatin (Philippines)
since DOF and partner OSM rebuilt the Elementary School after
a typhoon in 2013.
Ta x
The DOF Group aims to achieve excellence in all its operations
in every jurisdiction in which it operates. By providing a
Tax Strategy, the DOF Group aims to ensure that all tax
obligations are complied with in a timely, ecient and cost-
eective manner, in all project locations.
The DOF Group is mindful of its responsibility and committed
to paying the amounts of tax legally due in any country in which
it operates, in compliance with applicable laws and conventions
and in accordance with DOF’s Code of Business Conduct.
The DOF Group Tax Strategy, available on the DOF website,
provides further details concerning DOF’s approach to tax.
Strengthened the pursuit of new lines of business
The changing and evolving of DOF line of business will
have to continue through 2022 and build upon the various
strategy business plans in close interaction with the DOF's
DigiTech environment established in 2021.
The main focus in 2022 will be to follow the business
strategy plan developed and continue investment in people
and technology. DOF aim to be a wind – floating, one stop
shop, supporting the total life of field: from pre-construc-
tion, construction, operations and maintenance and finally
to decommissioning. This calls for strong cooperation and
alignment with (among others) our global survey environment.
Several new positions have been identified to strengthen the
Business Development, as well as technical lead to be hired
during the year. During the year a review will be done to
investigate possibilities to document DOF's oshore wind
capabilities by a certificate issued by DNV.
The Company will continue building track records within
SURF and execute the market plans will be main focus for
2022. We will continue to build competence and capacity
within the area by hiring new employees.
Within mooring and decommissioning we will continue
building competence, and capacity globally will be achieved
by recruiting new competence. This will also include building
competence in Brazil to be prepared for new opportunities
when the market would like to see turnkey suppliers. The
development of Honey mooring will continue into 2022 both
as R&D as well as partnering with stakeholders both within
oil and gas and oshore wind.
During 2022, the Group will evaluate establishing a centre of
excellence for Survey. The Centre of Excellence focus will be
on the commercial and technical development of the survey
market and continued implementation of One DOF for Inspec-
tion and Positioning. It will also explore further the market
for Geophysical Survey and Geotechnical Survey services.
Future goals within Prosperity
The DOF has a zero mind-set towards customer complaints
and downtime of our operations. Operating in a challeng-
ing market with pressure to deliver the same services for
less money, DOF appreciates the importance of maintaining
the quality of services. In a complex and demanding world,
excellence is not simply having the best product or service.
DOF will work towards delivering ever-improving value to its
customers, and other stakeholders involved in contributing
to our overall organisational sustainability. The continuous
improvement to the overall organisational eectiveness and
capabilities will position DOF as a partner of choice to both
regional clients and major international clients.
DOF will continue to evaluate and engage with strategic
partners to strengthen existing capabilities and to develop
new capabilities that will allow DOF to expand its range of
services and align with the needs of international clients.
ESG FACTBOOK Prosperity
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dof integrated annual report 2021
The “SkAIwatch” product gives insights to optimise critical
equipment maintenance planning and decision making. This
can remove the requirement for unnecessary scheduled
maintenance.
Migration from perceived ‘good performance’ to measurable
performance is key to performance management. We must
gather data and extract value from this data. Analysis of data
via software is an invaluable tool for performance manage-
ment. Today’s technology is moving into capabilities where
e.g. Digital Twins, Machine Learning and Artificial Intelli-
gence are becoming available to a moderate cost, enabling
large improvement and insight to the company’s operations.
We must continuously review the tools we use and maximise
the functionality available in these tools in order to identify
improvements possible in our performance in both short and
long term. The following activities will be done in 2022:
Utilisation of the CRM solution we use will be reviewed
and new ways of extracting value from the CRM database
will be implemented via increased data input and automated
reporting. The CRM solution will be placed into “life-cycle
management” mode with focus on continuous improvement.
To deliver insights into vessel operational data, investigation
will be done into new cloud-based solutions available from
vendors. This is commonly known as ‘Maritime 4.0 Platform”.
These solutions are designed to provide maximum availability
of our data and a range of analysis and reporting software
is available to help us gain insights into vessel performance.
DOF will investigate the vendor landscape and combine that
with the strategy and future needs for DOF in order to
choose future platform for these initiatives.
The existing “SkAIwatch” product was installed on the global
fleet in 2021. In 2022 it will be enhanced to include aspects
of machine learning to improve trend analysis in insights.
This will be delivered via a new version of this important
software solution.
Subsea Robotics
Subsea Robotics encompasses subsea vehicles with robotic features,
such as the classic work class ROV, AUV, and newer types of
subsea vehicles designed for data acquisition and intervention.
Subsea robotic vehicles have been used to perform task which
divers and people cannot perform. Increasingly, with improve
-
ments in battery and subsea communications technologies, the
capabilities are growing. New possibilities are appearing in
relation to remote control, digital imaging, optical imaging,
and other techniques. DOF need to have these capabilities
to remain competitive and relevant.
In 2022, DOF will start preparation work for onshore pos-
sibility of remote operation of ROV / LARS, including proof
of concept for DOF future ROV operations.
Modern Information Technology
New possibilities are made available by introducing modern
IT tools both to the onshore and oshore organisations, and
in combination with each other. Implementation of these
new products, supported by new company Standards, can
ensure resilience against the growing wave of cyber threats,
increase eciency, and change how we can leverage new vessel
connectivity. A modern IT platform is crucial for further
implementing new digital tools and ways of working, as a
part of the Maritime 4.0 initiatives.
Business continuity is key for sustainability of the company
and the work force. Increased and proportionate focus on
cyber security will directly contribute to business continuity
and avoid operational disruption, financial risks, and reduce
threats to business continuity and sustainability.
Leveraging modern systems oshore, with sight on remote
operations and reducing the ‘distance’ between vessel and
shore will increase quality and availability of communica-
tions to vessels. New connectivity to our vessels will result
in tighter project integration with vessel sites, new availabil-
ity of vessel and project data onshore, and increased usage
of secure cloud systems to support operations and enable
new possibilities. Stability and increased availability of vessel
connectivity will be key targets.
Modern IT solution will enable new possibilities such as the
Maritime 4.0 Platform for Performance Management.
Investment will be made on new standardised IT systems
for installation on vessels. These will be tightly coupled with
evaluation and installation of modern connectivity solutions.
The following activities will be done in 2022:
The existing “Cyber Security Standard” will be reinforced,
and IT equipment will be implemented on board vessels to
reduce risk and gain increased awareness of risk.
The new “Vessel IT-C Platform” product will be created and
implemented to modernise vessel IT systems and deliver
the new ship-to-shore connectivity required by DOF Group.
A total of 40 vessels are targeted for implementation in
2022 (pending on operational planning and vendors delivery
capabilities).
Performance Management
Performance Management can be defined as the continuous
process of maximising the benefits delivered to the business of
the resources the company has at its disposal. In the context
of digitalisation, this means the technical solutions we use
today and wish to use tomorrow, for example, software and
hardware, both from IT-systems and OT-systems. This is
defined as Industry 4.0, or the fourth industrial revolution.
In maritime terms, this are often referred to as Maritime 4.0.
If we manage performance of our equipment and resources,
we can maximise the return on investment in these items.
Benefits include reduced fuel consumption and operational
expenditure, new insights into the data we generate, reducing
unplanned maintenance, and reduction of scheduled main-
tenance which may be unnecessary.
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dof integrated annual report 2021
Principles
Our company value that is directly connected to principles:
INTEGRITY
“We are honest, fair and equitable in all our dealings. We are dedicated to good
corporate governance. We strive to do the right thing not because someone is
checking, or looking, but purely because it is the right thing to do.”
Stakeholders rightly expect good governance, integrity and ethical practices
to be evidenced at all levels of DOF’s organisation and operations. Upholding
standards aligns with UN's Global Compact and Sustainable Development
Goals, ensures decent work, generates wealth for employees, local communities,
and along our supply chain as well as wider society by generating taxes.
Upholding our position within the top 5 for environmental and social
sustainability in our industry is a strategic objective in the next 3-year
strategic period and a driver for value creation. Through Integrity we aim to:
• Maintain DOF’s reputation as a responsible and competent partner,
demonstrating the highest level of integrity in all our activities. Promote
fair and honest relationships with all stakeholders through consultation
and engagement.
•
Continue to deliver value to all stakeholders and wider society by providing
clients with subsea and marine solutions that meet client expectations
and contractual obligations. Here, ‘repeat business’ is strong indicator
of client confidence and helps us win future contracts.
Our global community is witnessing the invasion of Ukraine, and we see the
repercussions of fractured tensions in international cooperation. 2022 will
undoubtedly be a year that requires strong global governance and eective
risk management eorts. Crises prompt unexpected and unpredictable paths,
as exposed by COVID-19. DOF will continue enforcing our Values as guiding
principles of good corporate governance and behaviour. Having recognised
reference points, like our company Values and Code of Business Conduct is
essential to navigating DOF through the volatile, uncertain, complex, and
ambiguous challenges we will see unfold in the coming year.
Within Principles, we apply our values
to define significance,
guide our approach, assess our results, and set the ambitions into our future.
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2021
2021 activities within Principles
Everyone shares the commitment to practise the highest
standards of ethical business conduct and integrity in all
decisions, and actions. Values-based training is mandatory,
including our Code of Business Conduct e-learning module,
compliance activities and the correct use of our manage-
ment systems and tools.
To ensures external providers align with our values and
policies, the Group has invested in a more ecient, digital
platform to conduct vendor evaluation which is also designed
to ensure principles are upheld along our supply chain. The
vendor evaluation is mandatory for all suppliers and will
produce a master supplier database in Unit 4 ERP.
Compliance to Law, Industry Standards, and local regulations
Operating globally DOF works to comply with regulations at
both national and local levels.
Guided and inspired by international laws, DOF is in front
to uphold the highest standards within integrity:
• US Dodd Frack Act
• California Supply Chain Transparency Act
• UK Modern Slavery Act
• France Duty of Vigilance Law
• Australian Modern Slavery Bill
• Netherland Child Labour Due Diligence Law
• Germany Supply Chain Due Diligence Law
• EU Conflict Mineral Regulation
• Norway Transparency Law –“Åpenhetsloven”
• DOF personnel and subcontractor compliance
All DOF personnel and subcontractors are required to comply
with applicable legislation, regulations and standards as well as
client’s requirements. The legislation, standards, codes of practice
and guidelines register provides a list of applicable requirements.
Each region has developed registers of applicable legisla-
tion, standards, codes of practice and guidelines. When DOF
operates in areas where legal requirements are weak, all oper
-
ations are to follow our policies and operational standards.
DOF’s Management System is based upon ISO 9001:2015, ISO
14001:2015 and ISO 45001:2018. The system is accredited by DNV.
All legislative requirements are listed in the regional Legisla-
tion and Other Requirements Compliance Register according
to pre-identified areas for the compliance analysis.
The company subscribes to regular updates from legal databases,
and register is being updated accordingly. Compliance with
the requirements is verified during internal reviews, inspec-
tions, third party reviews, internal and external audits.
Anti-Bribery & Corruption
In 2021, DOF continued the practice of evaluating vendors
to assess their suitability to meet DOF’s requirements for a
competent and reliable vendor. A key and mandatory element
of the assessment process is the requirement for the vendor
to declare their commitment to abide by DOF’s Anti-Bribery
and Corruption guidelines. Failure to comply will automati-
cally exclude the vendor.
0
Fines
There have been no significant fines or non-
monetary sanctions due to non-compliance.
0
Corruption cases
There have been no corruption cases
in 2021.
Compliance
Awareness
A compliance awareness programme
has been developed and available to
the entire organisation.
UN Global Compact
DOF's supplier evaluation program is
based on the ten principles in the UN
Global Compact, covering the areas:
Human Rights, Labour Conditions,
External Environment, Anti-Corruption.
Ethics Helpline
DOF has a 24/7 Ethics Helpline,
available for people inside and outside
the organisation. Reports can be
made anonymously, and the service
is managed by a third-party provider.
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Transparency - Traceability - Trust
DOF’s anti-corruption and anti-bribery measures are regularly
evaluated in order to ensure that sucient measures are in
place and oversight responsibility sits with the BoD.
Risk and opportunity management
Risk and opportunity management is imperative to all DOF
business activities. The Risk Management Manual helps
DOF to identify threats and opportunities associated with
the DOF business and operational activities and establish
ecient means of barriers and controls in all phases of the
business life cycle. The Risk Management principles and
techniques align with the following:
• ISO 31000: Risk management -- Principles and guidelines;
•
ISO 31010: Risk management -- Risk assessment techniques;
• ISO 17776: Guidelines on tools and techniques for hazard
identification and risk assessment;
• DNV RP-H101: DNV Recommended Practice – RISK man-
agement in marine operations.
Modern Slavery Act and Human Rights
The Vendor Evaluation and Recertification process incor-
porate requirements to ensure that all existing and future
vendors to DOF agree to abide by the principles of the Act,
and that they do not promote or carry out any unlawful
human rights practices, as covered in the Modern Slavery
Act 2015, and also ensure that all vendors do not engage
in any type of human tracking, child or forced labour
practices, etc., whilst doing business with DOF. Suppliers will
be required to provide DOF with a Transparency Statement
stating their position with regards to the Act and associated
Human Tracking and related exploitation practices, or a
declaration that they will abide by DOF’s Code of Business
Conduct. Failure to comply with this requirement will auto-
matically exclude the vendor.
The new Norwegian Transparency Act will come into force
during 2022. DOF's operations has been guided by its prin-
ciples for years and it will be useful in motivation of our
supply chain to intensive their eorts within this area.
Training
DOF has incorporated specific training such as Anti-Bribery
& Corruption into its training programme. Also, where
necessary, DOF is committed to training all stakeholders
within its supply chain to understand the practical and legal
aspects of DOF’s Code of Business Conduct requirements,
and the possible implications and the consequences to DOF
and themselves of failing to comply with DOF’s requirement’s
and legislative obligations.
Through DOF IMCA membership we have access to training
material that is tailored for our industry to fight corruption.
The material is developed by Transparency International, the
global coalition against corruption, and active used by our
supply chain and legal function.
Supply Chain Management
The DOF CEO, supported by an executive management team
is responsible for identifying, engaging and where necessary
retaining all necessary financial, technological and organisa-
tional resources required to support the DOF Supply Chain
Management (SCM) global operations.
DOF’s overall SCM system is comprised of three core dis-
ciplines and two support disciplines, interacting with each
other as shown in Figure 14 on page 170. All activities under-
taken within the various supply chain functions meet the
following criteria:
•
The best interest of DOF and its partners - Add value to the supply
chain system for the benefit of the Company and its partners.
• Fairness, Integrity and Transparency - To achieve the best
value for money, whilst protecting the Company from un-
wanted and / or illegal practices such as: fraud, corruption,
collusion and other unethical practices.
• Best value for money - Trade-o between price and per-
formance that provides the greatest overall benefit under
the specified selection criteria.
• Eective competition - Ensure where possible, that there
is a sucient number of independent prospective vendors,
allow competition to supply between the vendors, non-dis-
criminatory selection criteria.
Procurement is central to DOF’s overall Supply Chain Man-
agement system. It ensures that all procurement activities
conducted by DOF are performed in a standardised and
controlled manner, consistent with DOF's policies and in
accordance with contractual obligations and client require-
ments and expectations.
The procurement of goods and services is undertaken in
a manner that reduces the level of risk and cost for DOF
and our clients whilst maintain the highest level of quality,
reliability and integrity possible. The process operates in
conjunction with the Contract Management and Logistics
management processes to achieve a seamless transition of
information and knowledge that supports all DOF entities
and projects.
In 2021 DOF’s global supply chain, consisted of almost
3,250 suppliers and a significant amount of its procurement
spending was comprised by bunkering, lay spread equipment,
crew agency services, specialised equipment hire, employee
travel, vessel hire among other services.
In 2021 the regional split for suppliers was as follows:
Asia-Pacific 18%, Atlantic 48%, North America 12%, and
South America 22%.
Risk and Opportunity Management
DOF has an active approach to future risk and opportunity man-
agement and strives to clarify its long-term potential, including
strategy, value drivers and risk factors, to its main stakeholders.
To produce lasting value for its stakeholders, and a long-term
competitive return on the investment of its shareholders, the
Board of Directors and the Management regularly evaluate
long-term risk and opportunity and potential impact on
strategic decisions taken today.
ESG FACTBOOK Principles
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DOF’s policy is to continue to invest in the local communi-
ties in which it operates. This includes investing in training,
building the technical competencies of our employees and
focusing on a local workforce.
DOF’s operations are based on asset investments with a
long-life span, of up to 30 years. DOF’s policy is to have a
modern, multi-purpose fleet, renewing and converting over
time to implement new technology and maintain an attrac-
tive, energy ecient fleet to serve our customers and potential
new markets.
To be a long-term marine and subsea supplier for oshore
industries DOF maintains a cohort of asset, marine and
subsea engineering competency, inhouse. There is potential
for DOF to continue to build on these core capabilities to
access opportunities in oshore renewable energy projects.
Balancing risk and opportunity is a key concept for DOF.
Operations range from low risk areas, such as long-term vessel
charter, balanced with more complex operations for subsea
project delivery. DOF further diversifies its risk exposure in
today’s global oshore energy market by having established
a global footprint, a presence in promising markets and
excellent customer relations. DOF is committed to maintain-
ing a focus on diversifying its risk exposure and adapting to
changing landscape of risk and opportunities.
Within DOF Subsea, the distribution of risk between Subsea
and IMR projects and long-term charter has been quite stable
over the last three years (ref. Figure 1 on page 165). Subsea
and IMR projects are normally regarded to have a higher risk
profile compared to long-term chartering of vessels. The dis-
tribution of project levels is outlined in Figure 1.
By using local suppliers and infrastructure, we support many
companies and organisations that are outside the DOF core
business, although vital to deliver successful operations to
our clients. It is dicult to quantify the exact monetary
value of this contribution; however, a conservative estimate
is that one DOF employee creates one job position outside of
the organisation. This estimate is based on various studies
performed by the energy industry trade organisations.
The Board of Directors, in its assessment of the scope and
volumes of dividend, emphasises security, predictability and
stability, dividend capacity of the Company, the requirement
for healthy and optimal equity as well as adequate financial
resources to create a basis for future growth and investment,
and considering the wish to minimise capital costs.
Full compliance
with all processes
Full compliance
with all processes
Partial compliance
consistent with risk level
Partial compliance
consistent with risk level
Minimum reviews
LEVEL LEVEL LEVEL LEVEL LEVEL
Manpower or
equipment Hire
Working on
client vessel or
PM&E contract
Vessel charters
or Minor IMR
campaign
Light
construction or
IMR
Major
Construction /
Intervention
projects
Degree of project complexity / Risk
Degree of control required
Overall risk management process in DOF is the balance between complexity of risk and complexity in a project, and degree of controls.
The figure above gives a visual view on how project levels are combined with what part of the business management system that need to apply.
Degree of complexity / risk compared to degree of control required - Figure 6
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dof integrated annual report 2021
2021
2021 results within Principles
During 2020, major activities have been initiated to strengthen
the integrity of the Group.
Tax strategy: At the beginning of 2021, the DOF tax strategy
was rearmed and approved by the Board of Directors. The
tax strategy is available on www.dof.com.
Supplier evaluation: Continued implementation of the vendor
evaluation database. Close to 600 suppliers were evaluated
during 2021; resulting in a total of 1,100 since DOF started
using the database.
Privacy and General Data Protection Regulation (GDPR): One
privacy breach with limited impact was recorded in 2020.
The incident was not subject to GDPR, and was reported to
local authorities in the area.
DOF Tax Strategy
DOF aims to achieve excellence in all its operations across
every jurisdiction in which it operates. By providing a Tax
Strategy, DOF ensures that all tax obligations are complied
with, in a timely, ecient and cost-eective manner, in all
project locations.
DOF is mindful of its responsibility and is committed to
paying the amounts of tax legally due in any country in which
it operates, in compliance with applicable laws and conven-
tions and in accordance with the Code of Business Conduct.
The strategy aims to demonstrate good corporate practice in
the area of tax management and tax transparency, balancing
the interests of the various stakeholders, including customers,
shareholders, employees and society at large.
Governing Documents
Besides the Code of Business Conduct (COBC) further improve-
ments were made to communicate DOF’s ethical guidelines
and business conduct with the release of an updated elec-
tronic training module made available to and mandatory for all
employees. The COBC sets clear expectations on all employees,
and provides examples of dilemmas that our people may
encounter. The training is also publicly available at www.dof.com.
Additionally, executive and middle management receive regular
training regarding anti-bribery and anti-corruption measures.
During 2021, the reporting mechanism for compliance incidents
has been actively used on both local and Group level, and
compliance incidents were handled and concluded in accord-
ance with the requirements in the policy framework.
Legal compliance 205-3 / 206-1
In 2021, there were no confirmed incidents of corruption,
and there was not any legal action pending or completed
regarding anti-competitive behaviour, anti-trust or monopoly
practices against DOF.
Operations assessed for risks related to corruption 205-1
In regions with a high risk for Bribery and Corruption, DOF
has used the know-how of DOF Subsea UK, subjected to
the ruling of the Bribery Act 2010, to frame the approach
to Bribery and ethics.
Bribery Risk Assessments for the Group’s operations (business
units) are performed and recorded on a regular basis, given
the risk potential.
However, risks identified out with the formal Risk Assessment
on an ad hoc basis will be added and analysed as appropri-
ate by Regional HSEQ Managers in all the locations where
DOF operates.
In addition, assessment related to Business Integrity and
Ethics is mandatory in all projects identified as level 3 and
above. In 2021, out of 104 projects, 74% were within levels
3-5, and consequently assessed for risks related to corrup-
tion. There were no significant risks identified that had not
already been treated by existing DOF standards and policies.
Control and mitigation required is based upon project risk
and complexity (Figure 1 on page 147).
Risk and Opportunities associated with business integrity,
anti-bribery and corruption, were evaluated as part of the
materiality workshop performed in 2021. Outcomes from the
workshop showed that whilst these topics were a material
concern to some of our stakeholders, they were not assessed
as ‘significant material topics’ due to robust control measures
being in place. Nevertheless, DOF considers the ongoing
prevention of bribery and business ethics risks to be of the
utmost importance across our value chain.
It should be noted that this level of control against business
ethics and bribery risk is applicable to DOF level. At business
unit and worksite levels of the organisation, it is necessary for
measures to be implemented to manage compliance against
local risks and requirements.
In the UK, DOF follows the ruling of the Anti-bribery act
of 2010, and in other regions were DOF operates, a detailed
process is followed according to guidelines for Business Acqui
-
sition in DOF, including Legal Contractual Risk Assessment,
Commercial Risk Assessment, Technical Risk Assessment
and Insurance Review.
Risks identified related to corruption may vary according to
the activity the Company is engaged in. For example, during
the tender selection key risks encompass facilitation payments,
excessive hospitality and excessive promotional expenditure,
to provide a client with excessively luxurious accommodation
or transportation and oer of favourable prices in return for
a personal gain.
Donations and sponsorships are organised in a transpar-
ent way and are regularly checked and audited by external
bodies such as PwC and equals.
ESG FACTBOOK Principles
166
dof integrated annual report 2021
2021
A typical donation can be to an athletic organisation where
DOF donates a fixed sum for sponsoring a sport arrangement.
DOF has its name on posters or clothes and in return the
company will receive an invoice from the athletic club. The
invoice will refer to an agreement. Other sponsorships can
be of named athletics with a half yearly payment. This is
regulated in a joint agreement signed by both parties.
With respect to donations to support bereaved with education
in case of the death of a DOF employee, a separate donation
committee is organised by external lawyers. As a gesture, DOF
will donate a given sum of money and this will be followed
up by collection given by DOF employees.
In Brazil, DOF donates money to established and reputable
organisations that run schools and educational programs.
These donations are based upon written agreements and
payments are based upon invoices referring to the agree-
ments. The agreements are part of the annual audit scope
performed by external auditors.
In general, all payments in DOF are regulated in the author-
isation matrix. The “four sets of eyes” principle is built into
this. The entire payment process is under strict control and
in case of donations and sponsorship these rules will apply.
Projects on level 3 and above (ref. Figure 6 on page 165) are
assessed regarding risk of bribery and corruption. However,
regional Executive Vice Presidents may deviate from this
requirement by a Management of Change process. Due to this
possibility for deviation, it is currently not possible to obtain
an exact number of projects where bribery and corruption
risk assessment has been done. Going forward, DOF intends
to update routines and processes to capture this information.
Communication and training on anti-corruption policies
and procedures 205-2
DOF’s Business Integrity and Ethics policy is approved by
the Board of Directors. This policy is available on the public
website, intranet, and posted at all work sites globally. In
addition, the policy is communicated to both suppliers and
clients through the business processes.
The policies are reviewed regularly in management review
at regional and corporate level. Any changes proposed are
given final approval by the Board of Directors.
Introduction training is provided to all employees in DOF,
regardless of their role and position. Four e-learning modules
are mandatory, including a module regarding Business Ethics
and Code of Conduct, which covers many issues regarding
anti-bribery and anti-corruption policies. In addition to com-
pleting the module at the start of employment, it must be
completed again every two years. In 2021, approximately
1,500 employees completed the module.
One of the aims is to provide to the executive and middle
management team regular training regarding anti-bribery and
anti-corruption measures. Board members are informed on
a quarterly basis of any cases, changes or results of audits
in the area of Anti-Bribery and Corruption.
Business Integrity and Ethics is a mandatory part of the
yearly appraisal between managers and employees. This is
an important opportunity for monitoring awareness and con-
sciousness of DOF’s values.
Financial implications and other risks and
opportunities for the organisation’s activities due to
climate change 201-2
In recognition of TCFD’s recommendation, DOF has performed
a Climate Risk Scenario Assessment and subsequent report.
This builds upon the 2016 Climate Change Risk and Oppor-
tunity workshop, by providing in depth analysis of physical
and transition risks associated with DOF’s interaction with
climate change.
The Climate Scenario Analysis identified multiple risks and
opportunities associated with three IPCC climate scenarios.
These risks and opportunities were categorised into the
following areas;
• Physical Risks;
• Transition Risks;
• Policy and legal;
• Technology;
• Market;
• Reputation.
The above analysis evaluated both direct and indirect risks
and opportunities to DOF’s Value Chain associated with
Climate Change Scenarios.
At this stage, DOF has recognised the a forementioned risks
and opportunities using qualitative descriptors. Quantitative
and financial implications have yet to be established, beyond
theoretical descriptions outlined within the report.
Coverage of the organisation’s defined benefit plan
obligations 201-3
From 2021, there are no longer any defined benefit plans
in DOF.
For defined contribution plans, DOF pays contributions to
publicly or privately administered pension insurance plans
on a mandatory, contractual or voluntary basis. DOF has
no legal or constructive obligations to pay further contri-
butions if the fund does not hold sucient assets to pay all
employees the benefits relating to employee service in the
current and prior periods.
The contributions are recognised as employee benefit expense
when they are due. Prepaid contributions are recognised as
an asset to the extent that a cash refund or a reduction in
the future payments is available.
Coverage of the organisation’s defined benefit plan
obligations 201-3
From 2021, there are no longer any defined benefit plans
in DOF.
For defined contribution plans, DOF pays contributions to
publicly or privately administered pension insurance plans
167
dof integrated annual report 2021
2021
on a mandatory, contractual or voluntary basis. DOF has
no legal or constructive obligations to pay further contri-
butions if the fund does not hold sucient assets to pay all
employees the benefits relating to employee service in the
current and prior periods.
The contributions are recognised as employee benefit expense
when they are due. Prepaid contributions are recognised as
an asset to the extent that a cash refund or a reduction in
the future payments is available.
Financial assistance received from government 201-4
In 2021, DOF received tax relief / tax credits or subsidies
in some of its areas of operation as part of governmental
COVID-19 relief measures for businesses.
The government is not present in the shareholding structure.
Norway
• Tax credit in relation to R&D projects
» NOK 7 million received in support from Innovasjon
Norge for Intelligent Eciency project by end of
2021.
» NOK 85 thousand received in tax credit related
to development of technique for remote survey
operations.
Singapore
• Subsidies
» USD 40 222
» SGD 14 077
UK
• Other financial benefits
» GBP 3,000 Employment Allowance
Canada
• Other financial benefits
» CAD 6,000 Government of Newfoundland &
Labrador Student Mentorship Agreement
USA
• Other financial benefits
» In 2020, the company received a Small Business
Administration Payroll Protection Program loan of
USD $2,342,292. In 2021, the company received a
second draw on this loan of $2,000,000. Both of
these amounts were confirmed to be 100% forgiven
in 2021.
Commitments to external initiatives
DOF endeavours to comply with recognised industry standards
and guidelines published by various organisations connected to
the oil & gas industry, such as International Maritime Organ-
isation (IMO), International Marine Contractor Association
(IMCA), International Association of Oil & Gas Producers
(IOGP), International Organisation for Standardisation (ISO),
and class societies (DNV, Lloyd’s etc.).
In the marine segment, a robust system is also in place to
allow that vessels and oshore personnel comply with laws
and regulations in the locals of operation.
DOF’s Integrated Management System (IMS) is based on com-
pliance with IMO regulations and audited and approved by DNV.
A Document of Compliance certificate is issued. An annual audit
is conducted to verify that the Company complies with the
requirements of the International Management Code for the
Safe Operation of ships and for Pollution prevention. The DOF
internal audit program is annually updated to ensure updates on
new regulations are implemented and adhered to in the Company.
All the vessels owned by DOF are audited regularly by DNV
GL under the same IMO legislation, vessel-by-vessel. Addi-
tionally, vessels are audited under the internal audit program.
DOF Management utilises DNV Navigator, which provides
regular updating of all IMO legislation and flag state require-
ments on vessel. Any changes in legislation as well any vessel
re-certification is communicated daily to our managers.
In 2013, DOF Management successfully implemented the
Marine Labour Convention (MLC) on all NIS / NOR, BAH,
Cyprus and IOM flagged vessels. In addition, vessel managers
ensure that all DOF vessels comply with the SOLAS regu-
lations for Life Saving Appliances (LSA) and Fire Fighting
Equipment on board and that masters and ocers are given
the required training to operate in safety.
Memberships of associations 2-28
In order to facilitate interaction and collaboration with
dierent sectors of the oshore industry, DOF is an active
member of many industry associations in the locations where
it maintains operations. In addition, there is regular partic-
ipation by DOF’s representatives in projects or committees
of those associations.
The International Marine Contractors Association (IMCA) is
the international trade association representing companies
and organisations engaged in delivering oshore, marine
and underwater solutions. DOF has been an IMCA member
for many years and has been an International Contractor
member since 2015. DOF has representatives in vice chair
positions in the Digitalisation Committee, and in the Envi-
ronmental Sustainability Committee.
IMCA defines the International Contractor membership as follows;
“International Contractor - ICO This category of membership
has been developed for contractors who have an international
presence -operating in 3 or 4 of the IMCA regions - as oshore
oil and gas construction contractors. Such companies should
be able to demonstrate their marine construction capability,
set out their geographical presence and their commitment
and involvement with IMCA.”
DOF Subsea APAC
•
APPEA (Australian Petroleum Production & Exploration Association)
• Subsea Underwater Technology (SUT)
ESG FACTBOOK Principles
168
dof integrated annual report 2021
2021
• Subsea Energy Australia
• Industrial Foundation for Accident Prevention (IFAP)
•
Oshore Project Safe - Steering Committee member (Region EVP)
DOF Subsea UK
• British Safety Council
• Subsea UK
• Oil and Gas UK
DOF Brasil
• Abespetro (O&G Association)
• Abeam (Shipowners / Vessel Operators Association)
• Syndarma (Shipowners Union)
• Abran (NSA - Norwegian Shipowners Association)
• NBCC (Norwegian-Brazil Chamber of Commerce)
• AEPM (Association for the Specialisation of the Seafarer)
DOF ASA
• Norwegian Shipowners Association
• Bergen Shipowners Association
• Norwegian Church Abroad – Global ERT membership
• The Bergen Chamber of Commerce and Industry
DOF North America
• American Society of Safety Engineers - ASSE
• International Organisation for Safety and Health - IOSH
• International Association of Drilling Contractors - IADC
Incidents of violations involving rights of indigenous
peoples 411-1
DOF has not identified incidents of violations involving the
rights of indigenous peoples in 2021.
Compliance 419-1
In 2021, there were no significant fines or non-monetary
sanctions related to fraud, corruption or workplace discrim-
ination under the jurisdictions where DOF operates.
Operations and suppliers in which the right to freedom of
association and collective bargaining may be at risk 407-1
DOF’s Equal Employment Opportunity Policy recognises
and respect employees’ rights to freely associate, organise
and bargain collectively in accordance with the laws of the
country in which they are employed. It has not been iden-
tified that these rights may be at risk for employees in any
of DOF’s operations.
In the supply chain, 230 suppliers evaluated in 2021 stated
that they source their products/services from at least one
country that is rated 4 or higher on the ITUC Global Rights
Index related to violation of workers rights.
Operations and suppliers at significant risk for incidents of
child labour 408-1 | Operations and suppliers at significant
risk for incidents of forced or compulsory labour 409-1
As stated in the DOF ASA Human Rights and Slavery statement,
the Group follows a practice, which conforms to interna-
tional standards for human rights, and Group operations are
managed in accordance with fundamental labour standards.
Our guidelines and standards are based on the ILO Conven-
tion that prohibits all use of forced labour or child labour.
In the supply chain, 7 suppliers evaluated in 2021 stated
that they consider high risk to UN Global Compact prin-
ciples regarding working conditions in at least one country
where they source products/services. Among these princi-
ples is principle 4: the elimination of all forms of forced and
compulsory labour, and principle 5: the eective abolition
of child labour.
Supplier screening 414-1 & 308-1
DOF vendor evaluation questionnaire is comprised of two
parts. The first part concerns anti-bribery and corruption,
and additional questions based on the UN Global Compact,
which asks the supplier to rate their risk towards breaches
of the principles. All vendors must complete the first part of
the questionnaire. The second part is largely related to man-
agement systems (Occupational Health & Safety / Quality /
Environmental). In 2021, 573 suppliers completed the ques-
tionnaire. This equals to 17.6% of suppliers used in 2021.
Including questionnaires prior to 2021 this figure equals to
34.3% of suppliers.
204-1 Proportion of spending on local suppliers
DOF utilises a global supply chain with suppliers that have
a global presence. In this context, to determine spend on
local suppliers, a local supplier is defined as supplier located
in the same country as the DOF entity that performed the
transaction. In 2021, the proportion of spending on local
suppliers (per DOF region) was as follow:
• Asia Pacific: 57%
• Atlantic: 57%
• North America: 83%
• South America: 78%
414-2 Negative social impacts in the supply chain and
actions taken
DOF did not identify any actual negative social impacts
in the supply chain in 2021. Regarding suppliers assessed
for potential negative social impact, the supplier screening
process also concerns risk for negative social impact (ref.
407-1, 408-1, 409-1, 414-1).
Political contributions 415-1
As per the Business Integrity and Ethics policy, DOF does
not allow payments to political parties, organisations, or
their representatives. There were no financial or in-kind
political contributions made directly or indirectly by the
organisation in 2021.
2022 focus within Principles
•
Continue to apply the new ISO 37001 standard to structured
governing documentation to achieve the highest standards
169
dof integrated annual report 2021
2022
within Anti-Bribery management system.
• All Whistleblowing incidents will be captured and demon-
strated as resolved in line with Group polices and inter-
national standards.
• A new database will be introduced, for identifying, recording,
assessing and controlling risks through all our activities to
ensure visibility at all appropriate levels within the organisation.
• Continue to strengthen the global legal function in DOF
combining legal, tax and insurance with a global perspective.
• New strategic objective: Maintain position within top 5 in
social and environmental sustainability in our industry.
• Active promotion of Amnesty e-learn module inside as
well outside DOF.
• Update and revise the Code of Conduct.
Anti-Corruption
The global industry is highly vulnerable to corruption and
the demand of facilitation payments in certain operational
areas. A vulnerability that increases with the widespread
use of agents, brokers and intermediaries in the industry.
DOF’s governing documentation and reporting addresses
how the company manages corruption risk and be transpar-
ent about challenges.
During 2022 DOF will make IMCA’s anti-corruption e-learn-
ing course available for the organisation, and it will be
mandatory for selected employees in the Group.
Norwegian Transparency Act
On July 1
st
2022 the Norwegian Transparency Act will enter
into force. As one of very few countries in the world, enter-
prises operating in Norway will have to prove that their
supply chain follows fundamental human rights and decent
working conditions. A lack of observation of the Act will
be pursued by sanctions such as enforcement penalties and
infringement penalties.
DOF has been part of the ocial hearing process on the
new law and given concrete proposal on practical means to
obey the intention of Transparency Act based on our expe-
rience on how we deal with fundamental human rights and
decent working conditions.
Accountability and Transparency
The industry’s supranational nature implies that it is
sometimes challenging to select a level of public disclosures
which satisfies all relevant audiences. However, and also rec-
ognising the Transparency Act, it is important to explain how
the company’s governance structure safeguards compliance
with legal requirements, potential sanctions and industry
standards, and how the company ensures accountability and
transparency in its operations and partnerships. DOF will
include this information in the Integrated Annual Report.
EU Taxonomy
Work will be initiated to prepare the Group to a future where
taxonomy is an integrated part of finance and accounting.
Privacy
A global compliance review will be performed of privacy leg-
islation in the countries where DOF have worksites (such
as GDPR in Europe and LGPD in Brazil). Although DOF
applies GDPR globally, there may be local deviations, and
it is also necessary to be aware of any ongoing changes to
privacy legislation.
Future goals within Principles
During next year a full review of our Code of Business
Conduct will be made. DOF will continue enforcing our
Values as guiding principles of good corporate governance
and behaviour. Having recognised reference points, like our
company Values and Code of Business Conduct is essential to
navigating DOF through the volatile, uncertain, complex, and
ambiguous challenges we will see unfold in the coming year.
Industry Leader: to leverage global assets, knowledge and
operational expertise, to strengthen the position and progress
towards being recognised as an industry leader capable of deliv-
ering large scale projects that add benefit to all stakeholders.
Global Partner of Choice: working with global operators, as
a committed and reliable organisation that can supply inte-
grated services and work in partnership to develop optimum
solutions for the benefit of both organisations, and other
relevant stakeholders.
Equally important, is DOF’s approach to forming strategic part-
nerships arrangements with its own supplier and contractors. The
intention is to develop a more cost eective and ecient supply
chain, regionally and globally, to benefit DOF and our clients.
United Nations Guiding Principles on Human Rights
and Business
In late 2019, DOF was invited to participate in a project
coordinated by the Rafto Foundation for Human Rights. This
project has been named “Future Proof” and develops tools
for businesses in the Bergen area to implement the United
Nations Guiding Principles on Human Rights and Business,
which will continue to develop throughout 2022. Through
participation, we gained a new and deeper understanding
of UN’s Global Compact and SDGs which will guide us in
further integrating Human Rights into our operations.
Amnesty International’s recent acknowledgment placing DOF
among the top 5 global companies based in the Nordics, not
only demonstrates our commitment to the core principles of
human rights, but that we are on the right track. Amnesty
International has also invited DOF to participate in the devel-
opment of an online learning tool to increase awareness and
knowledge within Human Rights and Business. The training
modules were finalised last year and will be made mandatory
for DOF's employees within Supply chain and all managers.
We will actively make the training available for our supplier.
ESG FACTBOOK Principles
170
dof integrated annual report 2021
171
dof integrated annual report 2021
Appendix B.1 - GRI Content Index for ‘In Accordance’
Appendix B
GRI
STANDARD
OTHER
SOURCE DISCLOSURE LOCATION
OMISSION
GRI
SECTOR
STANDARD
REF. NO.
VERIFI
CATION
REQUIRE-
MENT(S)
OMITTED REASON
EXPLA-
NATION
General disclosures
GRI 2:
General
Disclosures
2021
2-1 Organizational details
10-11
2-2 Entities included in the organization’s
sustainability reporting
198
Ye s
2-3 Reporting period, frequency and contact point
01 Jan. – 31 Dec. 2021
Annual
Stig Clementsen, CSO
Ye s
2-4 Restatements of information
None
Ye s
2-5 External assurance
200-201
Ye s
2-6 Activities, value chain and other business
relationships
10-11
No
2-7 Employees
193
No Ye s
2-8 Workers who are not employees
193
No Ye s
2-9 Governance structure and composition
46-53
No Ye s
2-10 Nomination and selection of the highest
governance body
48-49
No Ye s
2-11 Chair of the highest governance body
49
No Ye s
2-12 Role of the highest governance body in
overseeing the management of impacts
50-51
No Ye s
2-13 Delegation of responsibility for managing
impacts
50-51
No Ye s
2-14 Role of the highest governance body in
sustainability reporting
37-39
No Ye s
2-15 Conflicts of interest
52
No Ye s
2-16 Communication of critical concerns
34-45, 50
No Ye s
2-17 Collective knowledge of the highest
governance body
37-39
No Ye s
2-18 Evaluation of the performance of the
highest governance body
50
No Ye s
2-19 Remuneration policies
100
No Ye s
2-20 Process to determine remuneration
100
No Ye s
2-21 Annual total compensation ratio
a) 8.40.
b) 3.54 (decrease)
Based on information on
pages 76, 100.
Ye s
2-22 Statement on sustainable development
strategy
8-9
No Ye s
2-23 Policy commitments
Policies are available at
http://www.dof.no/en-GB/
HSEQ/Policies.
No Ye s
2-24 Embedding policy commitments
BMS (Business
Management System)
manual available at
http://www.dof.no/en-GB/
HSEQ/HSEQ-
Publications.
No Ye s
2-25 Processes to remediate negative impacts
30
No Ye s
2-26 Mechanisms for seeking advice and raising
concerns
30
No Ye s
2-27 Compliance with laws and regulations
151, 166, 169
No Ye s
2-28 Membership associations
168
No Ye s
2-29 Approach to stakeholder engagement
29, 182-183
No Ye s
2-30 Collective bargaining agreements
143
No Ye s
172
dof integrated annual report 2021
Appendix B.1 (continued) - GRI Content Index for ‘In Accordance’
GRI
STANDARD
OTHER
SOURCE DISCLOSURE LOCATION
OMISSION
GRI
SECTOR
STANDARD
REF. NO.
VERIFI
CATION
REQUIRE-
MENT(S)
OMITTED REASON EXPLANATION
General disclosures
GRI 3:
Material
Topics 2021
3-1 Process to determine
material topics
136-137
No
Ye s
3-2 List of material topics
182-183
Ye s
PEOPLE
DOF Material Issue: Business Ethics
Public policy
GRI 3:
Material
Topics 2021
3-3 Management of material
topics
29-30
No 11.22.1 Ye s
GRI 415:
Public Policy
2016
415-1 Political contributions
168
No 1.22.2 Ye s
DOF Material Issue: Employee HSE
Occupational health and safety
GRI 3:
Material
Topics 2021
3-3 Management of material
topics
140-141
No 11.9.1 Ye s
GRI 403:
Occupational
Health and
Safety 2018
403-1 Occupational health and
safety management system
140
No 11.9.2 Ye s
403-2 Hazard identification, risk
assessment, and incident
investigation
140
No 11.9.3 Ye s
403-3 Occupational health
services
140
No 11.9.4 Ye s
403-4 Worker participation,
consultation, and communication
on occupational health and safety
140-141
No 11.9.5 Ye s
403-5 Worker training on
occupational health and safety
141
No 11.9.6 Ye s
403-6 Promotion of worker
health
141
No 11.9.7 Ye s
403-7 Prevention and mitigation
of occupational health and safety
impacts directly linked by
business relationships
141
No 11.9.8 Ye s
403-8 Workers covered by an
occupational health and safety
management system
141
Ye s Information
unavailable/
incomplete
An exact number of
workers who are not
employees is not
available.
11.9.9 Ye s
403-9 Work-related injuries
142
Ye s Information
unavailable/
incomplete
DOF does not have split
between employees and
works who are not
employees, regarding
injury statistics.
11.9.10 Ye s
403-10 Work-related ill health
N/A
Ye s Information
unavailable/
incomplete
DOF does not have
sufficiently accurate data
for work-related ill health
for employees and
workers who are not
employees.
11.9.11 Ye s
173
dof integrated annual report 2021
Appendix B.1 (continued) - GRI Content Index for ‘In Accordance’
GRI
STANDARD
OTHER
SOURCE DISCLOSURE LOCATION
OMISSION
GRI
SECTOR
STANDARD
REF. NO.
VERIFI
CATION
REQUIRE-
MENT(S)
OMITTED REASON EXPLANATION
DOF Material Issue: Labour Practices
Employment
GRI 3:
Material
Topics 2021
3-3 Management of material
topics
138-139
No 11.10.1,
11.11.1
Ye s
GRI 401:
Employment
2016
401-1 New employee hires and
employee turnover
N/A
Ye s Information
unavailable/
incomplete
There is not sufficient
information on rate of new
employee hires and
employee turnover.
11.10.2 Ye s
401-2 Benefits provided to
full-time employees that are not
provided to temporary or
part-time employees
143
No 11.10.3 Yes
401-3 Parental leave
N/A
Ye s Information
unavailable/
incomplete
There are not sufficient
details available regarding
parental leave.
11.10.4,
11.11.3
Ye s
Employment
GRI 3:
Material
Topics 2021
3-3 Management of material
topics
138-139 No
11.7.1,
11.10.1
Ye s
GRI 402:
Labor/
Management
Relations
2016
402-1 Minimum notice periods
regarding operational changes
144 No 11.7.2,
11.10.5
Ye s
Training and education
GRI 3:
Material
Topics 2021
3-3 Management of material
topics
138 No
11.7.1,
11.10.1,
11.11.1
Ye s
GRI 404:
Training and
Education
2016
404-1 Average hours of
training per year per employee
144 Ye s
Information
unavailable/
incomplete
DOF does not have a
detailed breakdown in
gender and employee
category for average
hours of training.
11.10.6,
11.11.4
Ye s
404-2 Programs for upgrading
employee skills cand transition
assistance programs
144-145 No
11.7.3,
11.10.7
Ye s
404-3 Percentage of
employees receiving regular
performance and career
development reviews
144 No
NA
Ye s
Diversity and equal opportunity
GRI 3:
Material
Topics 2021
3-3 Management of material
topics
138 No 11.11.1 Ye s
GRI 405:
Diversity and
Equal
Opportunity
2016
405-1 Diversity of governance
bodies and employees
143 No 11.11.5 Ye s
405-2 Ratio of basic salary and
remuneration of women to men
N/A Ye s Information
unavailable/
incomplete
DOF does not currently
have a global overview of
ratio of basic salary and
remuneration of women to
men. This is intended to
be in place for 2022
reporting.
11.11.6 Ye s
174
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Appendix B.1 (continued) - GRI Content Index for ‘In Accordance’
GRI
STANDARD
OTHER
SOURCE DISCLOSURE LOCATION
OMISSION
GRI
SECTOR
STANDARD
REF. NO.
VERIFI
CATION
REQUIRE-
MENT(S)
OMITTED REASON EXPLANATION
Non-discrimination
GRI 3:
Material
Topics 2021
3-3 Management of material
topics
138
No 11.11.1 Yes
GRI 406:
Non-discrimi-
nation 2016
406-1 Incidents of discrimination
and corrective actions taken
144
No 11.11.7 Yes
PLANET
DOF Material Issue: Energy Management
Energy
GRI 3:
Material
Topics 2021
3-3 Management of material
topics
148 No
11.1.1 Ye s
GRI 302:
Energy 2016
302-1 Energy consumption
within the organization
150 No
11.1.2
Ye s
302-2 Energy consumption
outside of the organization
150 No
11.1.3
Ye s
302-3 Energy intensity 150 No
11.1.4
Ye s
302-4 Reduction of energy
consumption
N/A Ye s
Information
unavailable/
incomplete
DOF does not have
sufficient data to connect
reduction in energy
consumption directly to
energy reduction
initiatives.
NA
Ye s
302-5 Reductions in energy
requirements of products and
services
N/A Ye s
Information
unavailable/
incomplete
DOF does not have
information available
regarding reduction in
baseline energy
requirements of its
services.
NA
Ye s
DOF Material Issue: GHG Emissions
Emissions
GRI 3:
Material
Topics 2021
3-3 Management of material
topics
148-150 No 11.1.1,
11.2.1,
11.3.1
Ye s
GRI 305:
Emissions
2016
305-1 Direct (Scope 1) GHG
emissions
150-151 No 11.1.5 Ye s
305-2 Energy indirect (Scope 2)
GHG emissions
150-151 No 11.1.6 Ye s
305-3 Other indirect (Scope 3)
GHG emissions
150-151 No Yes
305-4 GHG emissions intensity 150-151 No Yes
305-5 Reduction of GHG
emissions
183 Ye s Information
unavailable/
incomplete
While DOF reports
reduction of GHG
emissions, it cannot be
directly linked to
reduction initiatives.
Ye s
305-6 Emissions of ozone-de-
pleting substances (ODS)
N/A Ye s Information
unavailable/
incomplete
DOF does not produce or
export ODS. It may be
present in equipment/
machinery onboard.
MARPOL Annex VI
prohibits deliberate
emissions of ozone
depleting substances.
However, DOF does not
have documentation if
there has been accidental
release of minor amounts.
Ye s
305-7 Nitrogen oxides (NOx),
sulfur oxides (SOx), and other
significant air emissions
N/A Ye s Information
unavailable/
incomplete
Ye s
175
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Appendix B.1 (continued) - GRI Content Index for ‘In Accordance’
GRI
STANDARD
OTHER
SOURCE DISCLOSURE LOCATION
OMISSION
GRI
SECTOR
STANDARD
REF. NO.
VERIFI
CATION
REQUIRE-
MENT(S)
OMITTED REASON EXPLANATION
DOF Material Issue: Supply Chain Management
Supplier environmental assessment
GRI 3:
Material
Topics 2021
3-3 Management of material
topics
23, 164, 169
No NA Yes
GRI 308:
Supplier
Environmen-
tal Assess-
ment 2016
308-1 New suppliers that were
screened using environmental
criteria
169
No NA Yes
308-2 Negative environmental
impacts in the supply chain and
actions taken
N/A
Ye s Information
unavailable/
incomplete
DOF does not have
detailed information
regarding negative
environmental impacts in
its supply chain.
NA Ye s
DOF Material Issue: Waste & HAZMAT Management
Waste
GRI 3:
Material
Topics 2021
3-3 Management of material
topics
148-149 No
11.5.1,
11.8.1
Ye s
GRI 306:
Waste 2020
306-1 Waste generation and
significant waste-related
impacts
151-152 No
11.5.2
Ye s
306-2 Management of
significant waste-related
impacts
152 No
11.5.3
Ye s
306-3 Waste generated N/A Ye s
Information
unavailable/
incomplete
DOF does not have
accurate information of
waste generated at all
worksites.
11.5.4,
11.8.2
Ye s
306-4 Waste diverted from
disposal
N/A Ye s
Information
unavailable/
incomplete
DOF does not have
accurate information on
the further handling of
waste after it is delivered
to waste handling
facilities.
11.5.5
Ye s
306-5 Waste directed to
disposal
N/A Ye s
Information
unavailable/
incomplete
DOF does not have
accurate information on
the further handling of
waste after it is delivered
to waste handling
facilities.
11.5.6
Ye s
PROSPERITY
DOF Material Issue: Energy Management
Market presence
GRI 3:
Material
Topics 2021
3-3 Management of material
topics
156-157 11.14.1 Yes
GRI 202:
Market
Presence
2016
202-1 Ratios of standard entry
level wage by gender compared
to local minimum wage
N/A Ye s Information
unavailable/
incomplete
DOF does not have
sufficient data on this for
2021 reporting. It is
however expected to be
available for 2022
reporting.
NA Ye s
202-2 Proportion of senior
management hired from the local
community
158 No 11.14.3,
11.11.3
Ye s
176
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Appendix B.1 (continued) - GRI Content Index for ‘In Accordance’
GRI
STANDARD
OTHER
SOURCE DISCLOSURE LOCATION
OMISSION
GRI
SECTOR
STANDARD
REF. NO.
VERIFI
CATION
REQUIRE-
MENT(S)
OMITTED REASON EXPLANATION
Ta x
GRI 3:
Material
Topics 2021
3-3 Management of material
topics
160
No 11.21.1 Yes
GRI 207: Tax
2019
207-1 Approach to tax
160
No 11.21.4 Ye s
207-2 Tax governance, control,
and risk management
160 No 11.21.5 Ye s
207-3 Stakeholder engagement
and management of concerns
related to tax
160 No 11.21.6 Ye s
207-4 Country-by-country
reporting
N/A Ye s Information
unavailable/
incomplete
11.21.7 Ye s
Risk balancing
DOF 3: Risk
Balancing
Revenue per business segment
and distribution of project
levels
192 No
Ye s
DOF Material Issue: Human Rights & Community Relations
Local communities
GRI 3:
Material
Topics 2021
3-3 Management of material
topics
25 11.15.1 Ye s
GRI 413:
Local
Communities
2016
413-1 Operations with local
community engagement,
impact assessments, and
development programs
N/A Ye s Information
unavailable/
incomplete
DOF does not have
sufficient details
regarding local community
engagement, impact
assessments, and
development programs.
11.15.2 Ye s
413-2 Operations with
significant actual and potential
negative impacts on local
communities
158 No 11.15.3 Ye s
DOF Material Issue: Product Design and Life Cycle
Customer Satisfaction
DOF 1:
Customer
Satisfaction
Results of surveys measuring
customer satisfaction
159 No Ye s
Operational uptime
DOF 2:
Operational
Uptime
Operational uptime for vessels
and ROVs
159 No Ye s
PRINCIPLES
DOF Material Issue: Business Ethics
Anti-corruption
GRI 3:
Material
Topics 2021
3-3 Management of material
topics
162-163 No 11.20.1 Ye s
GRI 205:
Anti-corrup-
tion 2016
205-1 Operations assessed for
risks related to corruption
166-167 No 11.20.2 Ye s
205-2 Communication and
training about anti-corruption
policies and procedures
167 Ye s Information
unavailable/
incomplete
DOF does not have
sufficient data to
document communication
and training about
anti-corruption policies
and procedures,
particularly towards
business partners.
11.20.3 Yes
205-3 Confirmed incidents of
corruption and actions taken
166 No 11.20.4 Ye s
177
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Appendix B.1 (continued) - GRI Content Index for ‘In Accordance’
GRI
STANDARD
OTHER
SOURCE DISCLOSURE LOCATION
OMISSION
GRI
SECTOR
STANDARD
REF. NO.
VERIFI
CATION
REQUIRE-
MENT(S)
OMITTED REASON EXPLANATION
Anti-competitive behavior
GRI 3:
Material
Topics 2021
3-3 Management of material
topics
162-163
11.19.1 Yes
GRI 206:
Anti-competi-
tive Behavior
2016
206-1 Legal actions for
anti-competitive behavior,
anti-trust, and monopoly
practices
166
11.19.2 Yes
DOF Material Issue: Business Model Resilience
Economic performance
GRI 3:
Material
Topics 2021
3-3 Management of material
topics
148-149 No
11.5.1,
11.8.1
Ye s
GRI 201:
Economic
Performance
2016
201-1 Direct economic value
generated and distributed
54-107 No 11.14.2,
11.21.2
Ye s
201-2 Financial implications and
other risks and opportunities due
to climate change
167 Ye s Information
unavailable/
incomplete
Quantitative and financial
implications have yet to
be established.
11.2.2 Ye s
201-3 Defined benefit plan
obligations and other retirement
plans
167-168 No NA Ye s
201-4 Financial assistance
received from government
167-168 No 11.21.3 Ye s
DOF Material Issue: Human Rights & Community Relations
Rights of indigenous peoples
GRI 3:
Material
Topics 2021
3-3 Management of material
topics
162-163 No 11.17.1 Ye s
GRI 411:
Rights of
Indigenous
Peoples
2016
411-1 Incidents of violations
involving rights of indigenous
peoples
169 No 11.17.2 Ye s
DOF Material Issue: Supply Chain Management
Procurement practices
GRI 3:
Material
Topics 2021
3-3 Management of material
topics
162-163 No 11.14.1
Ye s
GRI 204:
Procurement
Practices
2016
204-1 Proportion of spending on
local suppliers
169 No 11.14.6
Ye s
Freedom of association and collective bargaining
GRI 3:
Material
Topics 2021
3-3 Management of material
topics
162-164 No 11.13.1
Ye s
GRI 407:
Freedom of
Association
and
Collective
Bargaining
2016
407-1 Operations and suppliers
in which the right to freedom of
association and collective
bargaining may be at risk
169 No 11.13.2
Ye s
178
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Appendix B.1 (continued) - GRI Content Index for ‘In Accordance’
GRI
STANDARD
OTHER
SOURCE DISCLOSURE LOCATION
OMISSION
GRI
SECTOR
STANDARD
REF. NO.
VERIFI
CATION
REQUIRE-
MENT(S)
OMITTED REASON EXPLANATION
Child labor
GRI 3:
Material
Topics 2021
3-3 Management of material
topics
18, 164, 169
No NA Yes
GRI 408:
Child Labor
2016
408-1 Operations and suppliers
at significant risk for incidents of
child labor
169
No NA Yes
Forced or compulsory labor
GRI 3:
Material
Topics 2021
3-3 Management of material
topics
18, 164, 169 No
11.12.1 Ye s
GRI 409:
Forced or
Compulsory
Labor 2016
409-1 Operations and suppliers
at significant risk for incidents of
forced or compulsory labor
169 No 11.12.2 Ye s
Supplier social assessment
GRI 3:
Material
Topics 2021
3-3 Management of material
topics
18, 164, 169 No 11.10.1,
11.12.1
Ye s
GRI 414:
Supplier
Social
Assessment
2016
414-1 New suppliers that were
screened using social criteria
169 No 11.10.8,
11.12.3
Ye s
414-2 Negative social impacts in
the supply chain and actions
taken
169 No 11.10.9 Ye s
MATERIAL TOPICS FROM SECTOR STANDARD CONSIDERED NOT MATERIAL “NOT APPLICABLE”
Indirect economic impacts
GRI 3:
Material
Topics 2021
3-3 Management of material
topics
Ye s Not applicable DOF’s involvement with
infrastructure
development as a tier 2
contractor is low and
we are not involved with
social impact studies in
this area.
11.14.1
Ye s
GRI 203:
Indirect
Economic
Impacts
2016
203-1 Infrastructure investments
and services supported
Ye s Not applicable DOF’s involvement with
infrastructure
development as a tier 2
contractor is low and
we are not involved with
social impact studies in
this area.
11.14.4
Ye s
203-2 Significant indirect
economic impacts
Ye s Not applicable DOF’s involvement with
infrastructure
development as a tier 2
contractor is low and
we are not involved with
social impact studies in
this area.
11.14.5
Ye s
179
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Appendix B.1 (continued) - GRI Content Index for ‘In Accordance’
GRI
STANDARD
OTHER
SOURCE DISCLOSURE LOCATION
OMISSION
GRI
SECTOR
STANDARD
REF. NO.
VERIFI
CATION
REQUIRE-
MENT(S)
OMITTED REASON EXPLANATION
Water and effluents
GRI 3:
Material
Topics 2021
3-3 Management of material
topics
Ye s Not
applicable
DOF’s main interaction
with water is seawater
and do not consume
significant fresh water in
production processes.
11.6.1 Ye s
GRI 303:
Water and
Effluents
2018
303-1 Interactions with water as
a shared resource
Ye s Not applicable DOF’s main interaction
with water is seawater
and do not consume
significant fresh water in
production processes.
11.6.2 Ye s
303-2 Management of water
discharge-related impacts
Ye s
Not applicable DOF’s main interaction
with water is seawater
and do not consume
significant fresh water in
production processes.
11.6.3 Ye s
303-3 Water withdrawal Yes Not applicable DOF’s main interaction
with water is seawater
and do not consume
significant fresh water in
production processes.
11.6.4 Ye s
303-4 Water discharge Ye s Not applicable DOF’s main interaction
with water is seawater
and do not consume
significant fresh water in
production processes.
11.6.5 Ye s
303-5 Water consumption Ye s Not applicable DOF’s main interaction
with water is seawater
and do not consume
significant fresh water in
production processes.
11.6.6 Ye s
Biodiversity
GRI 3:
Material
Topics 2021
3-3 Management of material
topics
Ye s Not applicable When DOF operates in
protected areas for a limited
time with vessel, it is under
the client's governmental
approved environmental
protection plan.
11.4.1 Ye s
GRI 304:
Biodiversity
2016
304-1 Operational sites owned,
leased, managed in, or adjacent
to, protected areas and areas of
high biodiversity value outside
protected areas
Ye s Not applicable When DOF operates in
protected areas for a limited
time with vessel, it is under
the client's governmental
approved environmental
protection plan.
11.4.2 Ye s
304-2 Significant impacts of
activities, products and services
on biodiversity
Ye s Not applicable When DOF operates in
protected areas for a
limited time with vessel,
it is under the client's
governmental approved
environmental
protection plan.
11.4.3
Ye s
304-3 Habitats protected or
restored
Ye s Not applicable When DOF operates in
protected areas for a
limited time with vessel,
it is under the client's
governmental approved
environmental
protection plan.
11.4.4
Ye s
304-4 IUCN Red List species
and national conservation list
species with habitats in areas
affected by operations
Ye s Not applicable When DOF operates in
protected areas for a
limited time with vessel,
it is under the client's
governmental approved
environmental
protection plan.
11.4.5
Ye s
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Appendix B.1 (continued) - GRI Content Index for ‘In Accordance’
GRI
STANDARD
OTHER
SOURCE DISCLOSURE LOCATION
OMISSION
GRI
SECTOR
STANDARD
REF. NO.
VERIFI
CATION
REQUIRE-
MENT(S)
OMITTED REASON EXPLANATION
Security practices
GRI 3:
Material
Topics 2021
3-3 Management of material
topics
Ye s Not
applicable
DOF may hire extra
security personnel for
vessels entering high-risk
areas. This occurs rarely
and is thus not
considered a significant
topic.
11.18.1 Ye s
GRI 410:
Security
Practices
2016
410-1 Security personnel trained
in human rights policies or
procedures
Ye s Not applicable DOF may hire extra secu-
rity personnel for vessels
entering high-risk areas.
This occurs rarely and is
thus not considered a
significant topic.
11.18.2 Ye s
Customer health and safety
GRI 3:
Material
Topics 2021
3-3 Management of material
topics
Ye s
Not
applicable
DOF operates in an
industry with strict health
and safety requirements
in all operations. In the
context of DOF’s
operations, our approach
to health and safety
impacts are embedded in
our value chain to comply
with requirements from
international and national
regulations, industry, and
customers.
11.3.1 Ye s
GRI 416:
Customer
Health and
Safety 2016
416-1 Assessment of the health
and safety impacts of product
and service categories
Ye s Not applicable DOF operates in an
industry with strict health
and safety requirements
in all operations. In the
context of DOF’s
operations, our approach
to health and safety
impacts are embedded in
our value chain to comply
with requirements from
international and national
regulations, industry, and
customers.
11.3.3 Ye s
416-2 Incidents of non-compli-
ance concerning the health and
safety impacts of products and
services
Ye s Not applicable DOF operates in an
industry with strict health
and safety requirements
in all operations. In the
context of DOF’s
operations, our approach
to health and safety
impacts are embedded in
our value chain to comply
with requirements from
international and national
regulations, industry, and
customers.
NA Ye s
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We have experienced first-hand the fallout of COVID-19 and all the economic and social consequences that come with
it. Like many other World Economic Forum Global Risk Perception Survey respondents, DOF’s activities are subject to
disparities in COVID-19 political responses and divergent economic recovery rates. The economic, geopolitical, public
health and societal fractures that the pandemic risk has accelerated are reported as something likely to delay the
business communities’ response to other global challenges such as climate response, the greening of energy systems,
addressing digital vulnerabilities, and social degradation. Whilst the WEF reports these as ‘Global Challenges’, our
internal workshops translate these topics as material issues to DOF.
A table showing how DOF connects material aspects to company People, Planet, Prosperity and Principles.
Appendix B.2 - Materiality (with People, Planet, Prosperity, Principles)
Principles
Prosperity
Planet
People
Principles
Prosperity
Planet
People
WEF
FRAMEWORK
Validation
by executive
management team
VALIDATION
What ESG impacts
do DOF have?
This approach allows
DOF to look at 'Social and
Environmental Materiality'
across our value chain.
ASSESSMENT
Assessment criteria
- Likelihood of impact;
- Severity of impact;
- Opportunity or potential value creation;
- Nature of threat; long, medium or short term.
External strategic drivers
- Relevancy to Sustainable Development Goals;
- Global Report Initiative topic;
- Industry-specific drivers / Hard and soft law,
- Sector materiality.
Internal strategic drivers
- Area of value chain interaction;
- Existing DOF risk assessments/Significant
environmental aspects;
-
DOF Business Management System Documentation.
CRITERIA
Validation
by executive
sponsors and
the ELT
What ESG issues
could impact DOF?
This approach evaluates
what ESG matters interact
with DOF's ability to
create long-term value for
stakeholders. Otherwise
known as, Financial
Materiality.
Key Interests, concerns and/or expectations
of Stakeholders
- Employees;
- Clients;
- Investors;
- Suppliers;
- Local communities;
- Regulatory authorities;
- Non-Government organisations.
Strategic relevance to DOF
- Likelihood of impact;
- Severity of impact;
- Opportunity or potential value creation;
- Nature of threat; long, medium or short term
182
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Principles
Prosperity
Planet
People
Principles
Prosperity
Planet
People
Employee Health Safety and Security: Managing critical risks across
our value chain.
GHG Emissions:
The main concern is GHG emissions and the ability
to meet broad stakeholder expectations, and also concern over air
pollution emission from ships offshore and in harbour limits.
Supply Chain Management: ensuring responsible practices
throughout our supply chain.
OUTPUT:
TOP MATERIAL ISSUES
Shared Natural and Social Capital
Data Security
Human Rights and Community Relations
Labour Practices
Air Quality Management
Energy Management
Waste and Hazardous Materials Management
Ecological Impacts/Biodiversity
Customer Privacy
Business Model Resilience
Product Design and Life-cycle Management
Management of Legal and Regulatory Environment
Business Ethics
Competitive Behaviour
Critical Incident and Risk Management
OUTPUT:
OTHER SIGNIFICANT MATERIAL TOPICS
Labour Practices: Maintaining value chain and geographical
compliance of standards and practices addressing human rights,
working conditions, labour standards, and labour relations including
freedom of association, collective bargaining, working hours, rest and
minimum age.
GHG Emissions/Impacts of Climate Change: Managing fleet and
organisational preparedness to meet physical and transition risks and
opportunities of Climate Change.
Energy Management: Identifying DOF's role in meeting societal
expectations around the energy transition.
Business Model Resilience:
Maintaining and creating value propositions
that are aligned with the decarbonisation of the industry.
Supply Chain Management: Our capacity to cascade DOF and wider
sustainability principles within our supply chain.
Shared Natural and Social Capital
Data Security
Human Rights and Community Relations
Employee Health and Safety
Air Quality Management
Energy Management
Waste and Hazardous Materials Management
Ecological Impacts/Biodiversity
Customer Privacy
Product Design and Life-cycle Management
Management of Legal and Regulatory Environment
Business Ethics
Competitive Behaviour
Critical Incident and Risk Management
Appendix B.2 (continued) - Materiality (with People, Planet, Prosperity, Principles)
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Appendix B.3 - Enterprise Risk Management (ERM)
ERM principles and techniques are underpinned by:
• ISO 31000: Risk management – Principles and guidelines;
• ISO 31010: Risk management – Risk assessment techniques;
•
ISO 17776: Guidelines on tools and techniques for hazard identification and risk assessment;
• DNV RP-H101: DNV Recommended Practice – RISK management in marine operations
• Value creation uses the ERM process: identify, evaluate, control and mitigate the risk and
opportunities across DOF.
The ERM process
The ERM process involves the systematic application of policies,
procedures and practices to manage risk and opportunities,
establishing efficient barriers and controls across all phases of
the business life cycle by undertaking these activities:
1. Communication and consultation;
2. Scope, context and criteria;
3. Risk assessment;
4. Risk treatment;
5. Monitoring and review; and
6. Recording and reporting
Monitoring
and
review
Communication
and
consultation
Recording
and
reporting
Risk
assessment
Risk
treatment
Establishing
the context
Value creation uses the Enterprise Risk Management
(ERM) process: identify, evaluate, control and mitigate
the risk and opportunities across DOF.
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The ERM process
(continued)
Risk associated with DOF’s
strategic direction; framing
strategy; framing value
creation; 3-yr improvement
program.
Strategic Risk
Regional and Business
Unit Management Teams
Appendix B.3 (continued) - Enterprise Risk Management (ERM)
Perform audits against global
frameworks; communicate
concerns raised by audit
committees or stakeholders
relevant to business unit
actions.
Review material issues,
including: problematic
cultural and operational
risk and opportunities with
specific focus on delays,
cost overruns, commercial
disputes, margins, and
other concerns.
Cascading lessons learned
across DOF regions and
business units.
Oversee activities of the
external and internal audit
functions, receive input on
the adequacy of financial
reporting and control
mechanisms on material
risk issues that could
impact company integrity.
Risks associated with
operations, planning and
executing marine and
subsea activities.
Operational Risk
Risks associated with
corporate culture; adapting
global business model
to regional business en-
vironment and customs;
local legal issues; regional
management.
Business Risk
Board of Directors /
Corporate Management
BOD and Corporate levels
of the management:
To produce lasting value
for stakeholders, and a
long-term competitive
return on the investment
the BOD and Corporate
Management regularly
evaluate long-term risk and
opportunity and potential
impact on strategic deci-
sions taken today.
The Corporate Management team as the governing body for assurance of the ERM model
by overseeing activities and efficacy ERM Framework – reporting to the BOD
Engaging key stakeholders; evaluating value creation; setting risk appetite; consider
high-level organisational risk from other areas of the business; strategic risk management
and governance mechanisms to respond to mega-trends and long-term macro level shifts
in the external market; cascading governance principles into cultural and process risk
management areas.
Execution Teams
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The dashboard contains
results from key targets,
both financial and non-
financial, established in
DOF. Additional targets and
review of current targets
are ongoing. Since 2014,
we have made substantial
progress in improving our
sustainability reporting.
Full details for both financial and non-financial
2021 performance are given in the financial
statements and in the ESG factbook.
Our value drivers
3.9
BILLION
Subsea project
total revenue in 2021
3.6
*
BILLION
time charter total revenue in 2021
* According to management reporting
78%
Utilisation
of the group fleet in 2021
80%
Utilisation
of Subsea project fleet in 2021
14.4
BILLION
group backlog per 31.12.2021
Financial performance
Applying relevant UN SDGs
The UN Sustainability Development Goals (SDGs)
are comprehensive in the issues that they address
with each goal having specific actions and targets.
As an organisation working principally with subsea
engineering and offshore vessels, DOF has assessed
the specific SDGs where we have the greatest impact
and can make a significant contribution as part of our
operations. We aligned eight SDGs (3, 4, 5, 8, 9, 13,
14, and 16) with corresponding material aspects. You
can see how they fit together on page 136.
Read more about UN SDGs:
https://sustainabledevelopment.un.org/
0
Fines
or non-monetary sanctions
due to non-compliance
1,589
Audits & Inspections
completed in 2021
1,036
NCRs
raised in 2021
0
Corruption
cases in 2021
Governance
Appendix B.3 - Value driver results 2021
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4.2
Subsea client
satisfaction
in 2021
(out of max score of 5)
4.2
Marine client
satisfaction
in 2021
(out of max score of 5)
99.0%
Vessel uptime
available operative time in 2021
99.3%
ROV uptime
available operative time in 2021
Marine and Subsea service delivery
6
Lost time injuries
Lost Time Injuries (LTIs)
in 2021
18
Incidents
recordable incidents
in 2021
0.68
/million hrs
Lost Time Incident frequency
31,250
Safety observations
raised in 2021
2.05
/million hrs
recordable incident frequency
6,079
Obervations
positive safety observations
reported by workforce
Operational health & safety
-6.6%
CO
emissions
total emissions in 2021
compared to 2020
B
CDP score
for 2021
0
Unrecovered
no spills unrecovered over 50 litres
Environmental performance
0
GDPR breaches
recorded in 2021
3
Confirmed
harassment cases
recorded in 2021
3.73%
Absence
absence due to sickness in 2021
3,820
Headcount
headcount per 31.12.2021
People
Appendix B.3 - Value driver results 2021
Key
The trend markers are in relation to end of year results in 2020. See DOF Integrated Annual Report 2020 to compare figures.
Positive trend in result Negative trend in result No significant change in result
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Appendix B.4 - Figures & tables
HSEQ INPUTOUTPUTS GLOBAL TARGETS METRICS
Number of Lost Time Injuries 0
Lost Time Injury Frequency Rate (LTIFR) < 0.3 / 1 000 000 man-hours
Lost Recordable Case Frequency Rate (TRCF) Includes LTIs,
Restricted Workday Cases, Medical Treatment Cases and fatalities.
<1.1 / 1 000 000 man-hours
First Aid Cases < 7.5 / 1 000 000 man-hours
Safety Observation Rate 600 / 200 000 man-hours
Global HSE targets - Figure 8
Overview of emergency incidents and exercises - Figure 7
Incident 30 28 9
Exercise 28 36 41
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Appendix B.4 (continued) - Figures & tables
OHS INPUTS OUTPUTS UNIT OF MEASUREMENT
2021
Target 2021
Man-hours Number 8 784 602 7 558 323 9 104 679
High consequence injuries Number 1 2 0
High consequence injury rate
Injuries per million man-hour
0.11 0.26 0
Fatalities Number 0 0 0 0
Number of Lost Time
Incidents (LTI) Number 0 6 6 5
Lost Time Injury
Frequency Rate
LTIs per
million man-hour < 0.3 0.68 0.79 0.55
Total Recordable Cases Number 18 19 20
Total Recordable Case
Frequency Rate
TRC
per million man-hour < 1.1 2.05 2.51 2.2
First Aid Cases Number 55 57 53
First Aid Case
Frequency Rate
FACs per
million man-hour < 7.5 6.26 7.54 5.82
Safety Observation Rate
SOB per
200.000 man-hour > 600 711 656 598
Lost Day Rate
% lost days
of scheduled days 0.04% 0.03% 0.02%
Absentee rate
% absent days
of scheduled days 3.73% 3.28% 2.45%
Occupational Health and Safety Indicators - Figure 9
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Appendix B.4 (continued) - Figures & tables
Conversion factors - Figure 12
Total energy consumption within the organisation in joules (see below for conversion factors)
ENERGY CONSUMPTION UNIT
Nonrenewable fuel consumed (fuel oil and LNG, scope 1 vessels)
GJ 6 084 447 6 334 898 6 898 322
Renewable fuel consumed
GJ 0
Electricity, heating, cooling and steam purchased for consumption
GJ 27 828 35 655 25 279
Self-generated electricity, heating, cooling and steam
GJ 0
Electricity, heating, cooling and steam sold
GJ 0
Total energy consumption within the organisation
GJ 6 112 275 6 370 553 6 923 601
Energy consumption outside the organisation (non-renewable
fuel consumed (fuel oil, scope 3 vessels)
GJ 1 221 769 Not available Not available
ITEM SOURCE
Marine gas oil (MGO) DEFRA 2021
Electricity Norway
1) IEA (2021), Emission Factors
2) AIB (2021), European Residual Mixes 2020
3) %RE: IEA
Electricity Canada
1) IEA (2021), Emission Factors
2) 2021 Green-e Residual mix Emissions Rates (2019 data, approximation)
Electricity Brazil 1) IEA statistic 2020, emission factor for 2018
Electricity USA
1) IEA statistic 2021, emission factor for 2019
2) 2020 Green-e Residual Mix Emission Rates (2018 data)
Electricity UK
1) IEA (2021), Emission Factors
2) AIB (2021), European Residual Mixes 2020
3) %RE: IEA
Electricity Australia
1) IEA (2021), Emission Factors
2) No residual emission factor
3) %RE: IEA
Electricity Singapore
1) IEA (2021), Emission Factors
2) No residual emission factor
3) %RE: IEA
Residual waste, incinerated Ecoinvent 3.8
ELECTRICITY CONSUMPTION PER REGION UNIT
Australia * MWh 231.0 * 231.0 311.5
Brazil MWh 352.7 412.5 643.5
Canada MWh 133.2 149.0 149.4
Norway MWh 6 454.6 8 469.1 4 914.9
Singapore * MWh 82.1 * 82.1 104.0
UK MWh 144.5 179.5 281.5
USA MWh 332.0 381.0 617.0
Total MWh 7 730.1 9 904.2 7 021.9
Electricity consumption per country - Figure 11
Energy consumption - Figure 10
100 %
0 %
Non-renewable vessel fuel consumed
Electricity, heating, cooling and steam
purchased for consumption
Energy
consumption
* Estimate based on 2020
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Appendix B.4 (continued) - Figures & tables
Intensity reduction targets - Figure 14
* Operational day is defined as days with vessel in warm layup, idle in port/field or in operation.
The above table shows the verified emission per operational day for Scope 1 vessels from 2013-2021 (total tons CO2e Scope 1 / total operational
days Scope 1).
Note: the figure has been recalculated with the assumptions for the 2021 reporting, to provide comparability year by year. The historical figures for
2020 and earlier will consequently vary slightly from what has been reported in previous years.
YEAR EMISSION PER OPERATIONAL DAYS * % CHANGE
Verified 2021 23.9 2.1 %
Verified 2020 23.4 0.4 %
Verified 2019 23.3 -8.9 %
Verified 2018 25.5 -1.2 %
Verified 2017 25.9 -3.3 %
Verified 2016 26.7 -1.3 %
Verified 2015 27.1 2.9 %
Verified 2014 26.3 -1.0 %
Verified 2013 26.6
22
27
26
25
24
23
201520142013 20172016 2018 2019 2020 2021
normalised emissions (C0
2
e)
CO
2
Emissions - Figure 13
Note: Prior to 2021, this table only showed Scopes 1 and
2, and Scope 2 was reported location-based. From 2021
going forward, Scope 2 will be reported market-based.
Note: Prior to 2021, this table only showed Scopes 1 and 2, and Scope 2 was reported location-based. From 2021 going forward, Scope 2 will
be reported market-based.
Methodology used: The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition).
Notes:
1) Although DOF started to report to the CDP in 2010 the base year chosen was 2011, since the data for 2010 was quite weak. Emissions in
base year (tons CO2e) was 593,745 (Scope 1) and 700 (Scope 2).
2) As vessel fuel consumption has an element of inaccuracy due to the methods in which fuel consumption are recorded onboard vessels, there is
a level of uncertainty associated with the final Scope 1 and Scope 3 emissions.
3) The chosen consolidation approach for emissions is Operational control.
4) GWP source: CO2 (IPCC Fourth Assessment Report (AR4 - 100 year).
5) CO2e (CO2 equivalent) includes all major greenhouse gases; carbon dioxide (CO2), methane (CH4), nitrous oxide (N20)
CO
EMISSIONS UNIT OF MEASURE
Scope 1 ton (CO2e) 436 671 462 683 481 649
Scope 2 ton (CO2e) 3068 719 927
Scope 3 ton (CO2e) 97 265 111 714 137 438
Total * ton (CO2e) 537 004 575 116 620 014
Change (total) % -6.6 % -7.2 %
Scope 1 81 %
Scope 2 1 %
Scope 3 18 %
1 %
Scope 1
Scope 2
Scope 3
CO
2
Emissions
100 %
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Appendix B.4 (continued) - Figures & tables
Supply Chain Management (SCM) - Figure 15
Contracts
CORE Supply Chain Disciplines
Support Disciplines
Preparation and management of contracts and
model templates for SCM in DOF’s best interests
Development and maintenance of integrated systems, processes,
controls, & reporting associated with the SCM system
Controls the efficient, and effective, movement,
and storage of equipment and goods.
Selection and management of vendors and suppliers
capable of servicing DOF’s requirements
Management of the purchase order
processes
Vendor
Management
Procurement
Management
Logistics
Management
SCM Business
Systems
General information regarding our Supply Chain Management is also given on page 164 under the Principles chapter.
DOF 3 - Revenue per segment (DOF Subsea) - Figure 16
Subsea projects
71 % 61 % 63 %
Chartering of vessels 29 % 39 % 37 %
Total revenue (NOK Million) 5 545 5 337 5 147
Distribution of projects per project level (DOF Subsea) - Figure 17
Level 0: Budget Pricing 3 %
Level 1: Manpower or Equipment Hire 16 %
Level 2: Working on Clients Vessel or PM&E Contracts 7 %
Level 3: Vessel Charters or Minor IMR Campaign 53 %
Level 4: Light Construction or IMR 19 %
Level 5: Major Construction/Intervention Projects 2 %
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Appendix B.4 (continued) - Figures & tables
Employment statistics as of 31.12.2021 - Figure 18
TOTAL MEN WOMEN ATLANTIC
ASIA
PACIFIC
NORTH
AMERICA
SOUTH
AMERICA
Permanent Contract (Full-time) 2719 2361 358 787 210 190 1532
Temporary Contract (Full-time) 79 73 6 56 11 4 8
Permanent Contract (Part-time)
23 9
14 19 4 0 0
Temporary Contract (Part-time) 73 46 27 10 0 0 63
Self-employed workers 926 847 79 338 255 58 275
Total
3820 3336
484 1210 480 252 1878
BY GENDER PERFORMANCE REVIEWS TOTAL HEADCOUNT % OF EMPLOYEES RECEIVED REVIEWS
Female 169 419 40.33 %
Male 1550 2550 60.78 %
Total 1719 2969 57.90 %
BY EMPLOYEE CATEGORY
PERFORMANCE REVIEWS TOTAL HEADCOUNT % OF EMPLOYEES RECEIVED REVIEWS
Senior managers 74 220 33.64 %
Managers 368 551 66.79 %
Staff 1277 2198 58.10 %
Total 1719 2969 57.90 %
Overview of performance reviews by gender and employee category - Figure 19
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Appendix B.4 (continued) - Figures & tables
Summary of pension schemes - Figure 20
ATLANTIC
Norway (DOF Management / DOF ASA)
• There are no longer defined benefit pension plans in DOF ASA or DOF Management.
• Employees have a defined contribution pension plan. A percentage of salary is paid to an insurance company
in line with the earnings of wages.
• All employees are part of the pension scheme.
• Pension fund is handled by the insurance company.
• The company has no liabilities or obligation after payments to the insurance company on behalf of the indi-
vidual employee.
• The individual employee’s fund is based on actual payment done by the company and actual returns on funds.
• The employee gets the value of the fund paid in monthly payments when the employee reaches the age of
pension.
Norway (DOF Subsea)
• DOF Subsea AS and DOF Subsea Norway AS have a defined contribution pension plan for employees. A
percentage of salary is paid to an insurance company in line with the earnings of wages. The companies
have no pension liability.
• All employees are part of the pension scheme.
• Pension fund is handled by the insurance company.
• The company has no liabilities or obligation after payments to the insurance company on behalf of the
individual employee.
• The individual employee’s fund is based on actual payment done by the company and actual returns on
funds.
• The employee gets the value of the fund paid in monthly payments when the employee reaches the age
of pension.
UK
• There is no liability for the company.
• In UK there are no defined benefit plans.
SOUTH AMERICA
Brazil
• There is no liability for the company.
• In Brazil the company holds a private pension plan on a private bank.
• Pension Plan is based on salary percentage contribution from both employee and the company. Department
manager and above positions may contribute with up to 7.5% while for other employees the limit will be 3%.
• Scheme is voluntary and it is estimated that 40% of all employees are participating in DOF Subsea Brazil
and 50% in Norskan.
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Appendix B.4 (continued) - Figures & tables
NORTH AMERICA
USA
• The plan is fully funded and DOF Subsea has no liability to the plan. The plan matches the first 6% of
contributions dollar for dollar; The company portion is immediately vested at 100% as soon as the money
is remitted to the plan manager each pay period. The 401(k) plan is a DC plan. Such plans in the USA don't
act like DB plans of old (aka pension plans). So there is no liability or estimates to cover obligations to the
plan. All 401(k) plans are fully vested under the safe harbor act.
• In 2021, employees under age 50 could contribute up to a maximum of $19,500, those 50 and over may
contribute up to $26,000. The company match is up to 6% of payroll per participant.
• Scheme is voluntary.
Canada
• There is no liability for the company.
• Employer/Employee funded RRSP through Manulife. Maximum employer contribution is 5% for employees
with 5+years of services or 4% for those with less than 5 years; employees have option to contribute based
on individual RRSP contribution maximums. Monthly contributions are remitted to Manulife by the 15
th
of
following month.
• Scheme is voluntary.
ASIAPACIFIC
Australia
• There is no liability for the company.
• Australia operates compulsory superannuation schemes based on employer defined contributions.
• Employees have the right to choose which superannuation fund (external funds they are a member of).
• External superannuation funds in Australia are monitored by Australian Securities and Investment Com-
mission as well as other Governmental agencies.
• i) 9.5% employer contribution on gross salary to cap of AUD 114,180 for 6-months to 30 June 2021,
ii) 10% employer contribution on gross salary to cap of AUD 117,840 for 6 months ended 31 Dec
2021. iii) Employee contributions from payroll are voluntary
Singapore
• There is no liability for the company.
• Monthly contributions to the Central Provident Fund on wages up to an income ceiling of SGD 6,000. Rates
for employees 55 and under:
• i) employer - 17%
• ii) employee - 20%
• For employees over 55, the rates reduce - the lowest level being of 7.5% (employer) and 5% (employee) for
ages 70 and over.
• The scheme is mandatory for Singapore citizens and permanent residents. Others are not eligible.
Philippines
• Social security contributions are required under several social institutions, the aggregated maximum
monthly amounts are:
• i) employer - PHP 3,125
• ii) employee - PHP 2,125
• The scheme is mandatory for all Philippine employees.
Indonesia
• In Indonesia, the company is required to pay monthly contributions to the Workers Social Security fund
based on fixed rates.
• The scheme is mandatory for all Indonesian employees
Summary of pension schemes - Figure 20 (continued)
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Appendix B.4 (continued) - Figures & tables
BRAZIL
• Life insurance (employee and spouse/husband)
• Funeral Insurance (employee and spouse/husband)
• Health and Dental Insurance (employee and direct dependents - spouse/wife and kids)
• Pension Plan (employee) company do a deposit of the same amount than employee
• Supermarket Coupon (monthly basis)
• Restaurant Coupon (monthly basis only for onshore employee)
AUSTRALIA
All employees, whether full-time or part-time / fixed term have the same benefits, though if part-time some
benefits are pro-rated e.g. leave accruals. With the exception of:
9 Day Fortnight (flexibility) Scheme for permanent onshore full-time employees only (or maximum duration >12
months) - Employee Assistance Program.
NORWAY
All employees, including temporary employees, are entitled the same benefits. Employees who are younger than
20 years old or work less than 20% are entitled to most of the benefits except::
• Life insurance
• Disability and invalidity coverage
• Paid parental leave
• Pension
SINGAPORE
All employees, whether full-time or part-time have the same benefits. If fixed term or casual, benefits reduce.
Different benefits may be offered to employees based on their Singapore residency status (e.g. health insurance,
flights) or a car park bay based on their role seniority.
PHILIPPINES
All employees, whether full-time or part-time /fixed term, have the same benefits with the exception of:
Service Incentive Leave entitlement after one year of service, an employee becomes entitled to a yearly service
is provided with incentive leave of 5 days with pay (there are preclusions so must check always as to who this
applies to, for example does not apply to Managers or those employed in establishments regularly employing
less than 10 employees). Leave can be used in ill health or for general holidays and the balance must be paid
out at the end of the year.
TOWP (Time Off With Pay) sick - days not used at the end of each calendar year will be converted into money
equivalent and paid to the employee. Not available to casual employees.
Benefits provided to full-time employees that are not provided to temporary or part-time employees - Figure 21
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Appendix B.4 (continued) - Figures & tables
US
Benefits provided to full-time employees that are not provided to temporary or part-time employees:
• Health and Dental Programs to include medical, dental, and vision
• Flexible Spending Accounts (FSA and HSA)
• Life Insurance – Company Paid
• Voluntary Life Insurance – Employee Paid
• Short term and long term disability
• Employee Assistance Program (EAP)
• Vacation
• Statutory Holidays
• Sick Leave
• Family Medical Leave (FMLA)
• Time off to Vote
• Jury/Witness Leave
• 401(k) retirement (6% company match currently)
CANADA
The benefits below are provided to full-time employees and not provided to temporary / casual employees.
Part-time employees may have some or all of the benefits based on hours worked.
• Life Insurance
• Critical Illness
• Short term and Long term disability
• Employee and Family Assistance Program (EAFP)
• Vacation - Statutory Holidays
• Registered Retirement Savings Program
• Family Violence Leave - Personal Leave
• Parental Leave
• Adoptive Leave
• Bereavement Leave
• Compassionate Leave
• Reserve Leave
• Sick Leave
• Time off to Vote
• Jury/Witness Leave Duty
Benefits provided to full-time employees that are not provided to temporary or part-time employees - Figure 21 (continued)
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Appendix B.4 (continued) - Figures & tables
Entities included in the organisation’s sustainability reporting - Figure 22
ENTITY OPERATION
REGION SIGNIFICANT AREA
OF OPERATION
DOF Management Australia Pty Asia Pacific
DOF Management Pte
Asia Pacific
DOF Subsea Asia Pacific Pte. Ltd Asia Pacific
DOF Subsea Asia Pacific Pte. Ltd, Philippine Branch Asia Pacific
DOF Subsea Australia Pty Asia Pacific
PT DOF Subsea Indonesia Asia Pacific
DOF ASA Atlantic
DOF Management AS Atlantic
DOF Management Egypt Branch Atlantic
DOF Management UK Atlantic
DOF OSM Atlantic
DOF SJØ AS Atlantic
DOF Subsea Angola Lda Atlantic
DOF Subsea AS Atlantic
DOF Subsea Ghana Ltd Atlantic
DOF Subsea Norway AS Atlantic
DOF Subsea Norway Offshore AS Atlantic
DOF Subsea UK Ltd Atlantic
Marin IT AS Atlantic
DOF Subsea Canada Corp North America
DOF Subsea US Inc North America
DOF Management Argentina S.A. South America
DOF Subsea Brasil Servicos Ltda South America
Norskan Offshore Ltda South America
The below list shows the entities (operations) included in DOF’s sustainability reporting and
the region the entity is considered part of, in the context of significant area of operation.
The list below is determined based on entities with operational activity, and thus will dier
from the list of companies within the group in the consolidated financial statements.
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Appendix B.5 - Document figure overview
NUMBER DESCRIPTION PAGE
Figure 1 Employment type 145
Figure 2 Diversity of employees 145
Figure 3 Waste categorisation 150
Figure 4 DOF 1 - Operational uptime 159
Figure 5
DOF 2 - Customer Satisfaction
159
Figure 6
Degree of complexity / risk compared to degree of control required
165
Figure 7 Overview of emergency incidents and exercises 188
Figure 8 Global HSE targets 188
Figure 9 Occupational Health and Safety Indicators 189
Figure 10 Energy consumption 190
Figure 11 Electricity consumption per country 190
Figure 12 Conversion factors 190
Figure 13 CO2 Emissions 191
Figure 14 Intensity reduction targets 191
Figure 15 Supply Chain Management 192
Figure 16 DOF 3 - Revenue per segment (DOF Subsea) 192
Figure 17
Distribution of projects per project level (DOF Subsea)
192
Figure 18 Employment statistics as of 31.12.2021 193
Figure 19 Overview of performance reviews by gender and employee category 193
Figure 20 Summary of pension schemes 194
Figure 21
Benefits provided to full-time employees that are not provided to temporary or
part-time employees
196
Figure 22 Entities included in the organisation's sustainability reporting 198
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A member firm of Ernst & Young Global Limited
State Authorised Public Accountants
Ernst & Young AS
Dronning Eufemias gate 6, NO-0191 Oslo
Oslo Atrium, P.O.Box 20, NO-0051 Oslo
Business Register; NO 976 389 387 MVA
Tlf: +47 24 00 24 00
www.ey.no
Member of the Norwegian Institute of Public
Accountants
To the Board of Directors of DOF ASA
Independent accountant’s assurance report
Scope
We have been engaged by DOF ASA to perform a limited assurance engagement, as defined by
International Standards on Assurance Engagements, here after referred to as the engagement, to
report on DOF ASA’s sustainability reporting as the DOF ASA have defined and referred to in the
DOF ASA’s GRI Index (the “Subject Matter”) as of 31 December 2021 for the period from 01
January 2021 to 31 December 2021.
Other than as described in the preceding paragraph, which sets out the scope of our engagement,
we did not perform assurance procedures on the remaining information included in the sustainability
reporting, and accordingly, we do not express a conclusion on this information.
Criteria applied by DOF ASA
In preparing the Subject Matter, DOF ASA applied the relevant criteria from the Global Reporting
Initiative (GRI) sustainability reporting standards, “Core” option (the “Criteria”) and the Greenhouse
Gas (GHG) Protocol Corporate Accounting and Reporting Standard. The Criteria can be accessed
at globalreporting.org and are available to the public. Such Criteria were specifically designed for
companies and other organizations that want to report their sustainability impacts in a consistent
and credible way. As a result, the Subject Matter information may not be suitable for another
purpose. We consider these reporting criteria to be relevant and appropriate to review the
sustainability reporting.
DOF ASA’s responsibilities
The Board of Directors and Chief Executive Officer (management) are responsible for the selecting
the Criteria, and for presenting the Subject Matter in accordance with that Criteria, in all material
respects. This responsibility includes establishing and maintaining internal controls, maintaining
adequate records and making estimates that are relevant to the preparation of the Subject Matter,
such that it is free from material misstatement, whether due to fraud or error.
EY’s responsibilities
Our responsibility is to express a conclusion on the presentation of the Subject Matter based on the
evidence we have obtained.
We conducted our engagement in accordance with the International Standard for Assurance
Engagements Other Than Audits or Reviews of Historical Financial Information (‘ISAE 3000’). This
standard requires that we plan and perform our engagement to obtain limited assurance about
whether, in all material respects, the Subject Matter is presented in accordance with the Criteria,
and to issue a report. The nature, timing, and extent of the procedures selected depend on our
judgment, including an assessment of the risk of material misstatement, whether due to fraud or
error.
We believe that the evidence obtained is sufficient and appropriate to provide a basis for our limited
assurance conclusions.
Penneo Dokumentnøkkel: BUKLL-2N043-ITWFE-XHGNT-QCUX3-E1Y5E
Appendix B.6 - Independent Assurance Report - EY
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Independent accountant’s assurance report - DOF ASA
A member firm of Ernst & Young Global Limited
State Authorised Public Accountants
Ernst & Young AS
Dronning Eufemias gate 6, NO-0191 Oslo
Oslo Atrium, P.O.Box 20, NO-0051 Oslo
Business Register; NO 976 389 387 MVA
Tlf: +47 24 00 24 00
www.ey.no
Member of the Norwegian Institute of Public
Accountants
Our Independence and Quality Control
We have maintained our independence and confirm that we have met the requirements of the Code
of Ethics for Professional Accountants issued by the International Ethics Standards Board for
Accountants. EY also applies International Standard on Quality Control 1, Quality Control for Firms
that Perform Audits and Reviews of Financial Statements, and Other Assurance and Related
Services Engagements, and accordingly maintains a comprehensive system of quality control
including documented policies and procedures regarding compliance with ethical requirements,
professional standards and applicable legal and regulatory requirements.
Description of procedures performed
Procedures performed in a limited assurance engagement vary in nature and timing from, and are
less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance
obtained in a limited assurance engagement is substantially lower than the assurance that would
have been obtained had a reasonable assurance engagement been performed. Our procedures
were designed to obtain a limited level of assurance on which to base our conclusion and do not
provide all the evidence that would be required to provide a reasonable level of assurance.
Although we considered the effectiveness of management’s internal controls when determining the
nature and extent of our procedures, our assurance engagement was not designed to provide
assurance on internal controls. Our procedures did not include testing controls or performing
procedures relating to checking aggregation or calculation of data within IT systems.
A limited assurance engagement consists of making enquiries, primarily of persons responsible for
preparing the Subject Matter and related information and applying analytical and other appropriate
procedures.
Our procedures included:
► Review of DOF ASA’s process for preparation and presentation of the sustainability report to
develop an understanding of how the reporting is conducted within the business
► Interviewed those in charge of sustainability reporting to develop an understanding of the
process for the preparation of the sustainability reporting
► Verified on a sample basis the information in the sustainability reporting against source data
and other information prepared those in charge
► Assessed the overall presentation of sustainability reporting against the criteria in the GRI
Standards including a review of the consistency of information against the GRI index.
We believe that our procedures provide us with an adequate basis for our conclusion. We also
performed such other procedures as we considered necessary in the circumstances.
Penneo Dokumentnøkkel: BUKLL-2N043-ITWFE-XHGNT-QCUX3-E1Y5E
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Independent accountant’s assurance report - DOF ASA
A member firm of Ernst & Young Global Limited
State Authorised Public Accountants
Ernst & Young AS
Dronning Eufemias gate 6, NO-0191 Oslo
Oslo Atrium, P.O.Box 20, NO-0051 Oslo
Business Register; NO 976 389 387 MVA
Tlf: +47 24 00 24 00
www.ey.no
Member of the Norwegian Institute of Public
Accountants
Conclusion
Based on our procedures and the evidence obtained, we are not aware of any material
modifications that should be made to the Subject Matter as of 31 December 2021 and for the period
from 1 January 2021 to 31 December 2021 in order for it to be in accordance with the Criteria.
Oslo, 06 April 2022
E
RNST &YOUNG AS
The assurance report is signed electronically
Eirik Moe
State Authorised Public Accountant
Penneo Dokumentnøkkel: BUKLL-2N043-ITWFE-XHGNT-QCUX3-E1Y5E
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Glossary
AUV: Autonomous Underwater Vehicle
CAPEX: Capital Expenditure
CDP Carbon Disclosure Project
CSV/Subsea Construction Support Vessels and Subsea vessels
DNV-GL: Det Norske Veritas. Classification company. Controlling and
approving the vessels technical condition, security and quality
according to the company’s own rules and the national laws
DP: Dynamic Positioning
E&P: Exploration & Production
EPIC: Engineering, Procurement, Installation & Commissioning
ERM Emergency Risk Management
ESG Environmental, Social, and Corporate Governance
FPSO: Floating Production Storage and Offloading
GHG: Greenhouse Gasses
GOM: Gulf of Mexico
GRI: Global Reporting Initiative
HR: Human Resources
HSEQ: Health, Safety, Environment and Quality
IFRS: International Financial Reporting Standards
IMCA: International Marine Contractors Association
IMO: International Maritime Organisation
IMR: Inspection, Maintenance, and Repair
IOC: International Offshore Company
ISM: International Safety Management Code
ISO: International Standards Organisation
ISPS: International Ship and Port Facility Security Code. International
framework to detect/ assess security threats and take preventive
measures against security incidents affecting ships or port
facilities used in international trade
LNG: Liquefied Natural Gas
MLC: Maritime Labour Convention
NIBOR: Norwegian Interbank Offered Rate
NIS: Norwegian International Ship Register
NOR: Norwegian Ordinary Ship Register
OHSAS: Occupational Health & Safety Advisory Services
OSCV: Offshore Subsea Construction Vessel
PLSV: Pipelaying Support Vessel
ROV: Remote Operated Vehicle
SDGs: United Nations Sustainable Development Goals
SEMS: Safety and Environmental Management Systems
STCW: Standards of Training, Certification and Watch keeping
SURF: Subsea, Umbilicals, Risers & Flowlines
T&I: Transportation & Installation
Time Charter Party (TC):
Contract for Chartering a Vessel
UDW: Ultra Deep Water
VAE: Value Adjusted Equity
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A dedication & thank you:
Thank you to all our hard working
and dedicated colleagues.
It is you that makes DOF
the preferred OSV manager and
subsea services partner.
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DOF Subsea AS
Thormøhlensgate 53 C
5006 Bergen
NORWAY
Phone: +47 55 25 22 00
DOF Subsea Norway AS
Thormøhlensgate 53 C
5006 Bergen
NORWAY
Phone: +47 55 25 22 00
DOF Management AS
Alfabygget
5392 Storebø
NORWAY
Phone: +47 56 18 10 00
management@dof.com
A
DOF Subsea Angola
Belas Business Park-Talatona
Edificio Bengo, 1º Andar
Sala 106/107, Luanda
REPUBLIC OF ANGOLA
Phone: +244 222 43 28 58
Fax: +244 222 44 40 68
Mobile: +244 227 28 00 96
+244 277 28 00 95
A
DOF Management Argentina
S.A.
Peron 315, piso 1, Oficina 6-b
1038 - Buenos Aires
ARGENTINA
Phone: +54 11 4342 4622
fgarcia@seaworks.com.ar
A
DOF Subsea Australia Pty Ltd
5th Floor, 181 St. Georges
Tc e
Perth WA 6000
AUSTRALIA
Phone +61 8 9278 8700
DOF Management Australia
5th Floor, 181 St. Georges
Tc e
Perth WA 6000
AUSTRALIA
Phone: +61 3 9556 5478
Mobile: +61 418 430 939
management@dof.com
B
NorSkan Offshore Ltda
Rua Lauro Muller
116, 17 andar
Torre do Rio Sul - Botafogo
Rio de Janeiro, R.J.
BRAZIL CEP: 22290-160
Phone:
+55 21 21 03 57 00
Fax: +55 21 21 03 57 17
office@norskan.com.br
DOF Subsea Brasil Serviços
Ltda
Rua Fiscal Juca, 330
Q: W2 – L: 0001
Loteamento Novo Cavaleiros
Vale Encantado – Macaé/RJ
BRAZIL - CEP 27933-450
Phone: +55 22 21 23 01 00
Fax: +55 22 21 23 01 99
C
DOF Subsea Canada
26 Allston Street
Mount Pearl, Newfoundland
CANADA, A1N 0A4
Phone:
+1 709 576 2033
Fax: +1 709 576 2500
DOF ASA
Phone: +47 56 18 10 00
management@dof.com
S
DOF Management Pte Ltd
150 Beach Road
#14-01/03 Gateway West
189720
SINGAPORE
Phone:
+65 65602338
management@dof.com
DOF Subsea Asia-Pacific Pte Ltd
150 Beach Road
#14-01/03 Gateway West
189720
SINGAPORE
Phone:
+65 6561 2780
UK
DOF (UK) Ltd
Horizons House,
81-83 Waterloo Quay
Aberdeen, AB11 5DE
UNITED KINGDOM
Phone:
+44 1224 586 644
Fax: +44 1224 586 555
info@dofman.co.uk
DOF Subsea UK Ltd
Horizons House
81-83 Waterloo Quay
Aberdeen, AB11 5DE
UNITED KINGDOM
Phone:
+44 1224 614 000
Fax: +44 1224 614 001
USA
DOF Subsea USA Inc
5365 W. Sam Houston
Parkway N
Suite 400
Houston, Texas
77041
USA
Phone:
+1 713 896 2500
Fax: +1 713 726 5800
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dof integrated annual report 2021
Cover image
In the port of Rio de Janeiro,
DOF employees share a greeting
from the helideck of Skandi Vitoria
with Skandi Niteroi in view in
the background.
Production team
The DOF Integrated Annual
Report 2021 is produced with
great care and would not be
possible without the contribution
of many of the DOF team across
the globe. We thank everyone for
their considerable eorts. Special
thanks go to the project team
who helped make this year's
report come together. Committed
to continuous improvement, we
welcome and appreciate your
feedback. If you would like to send
us your views, please contact:
stig.clementsen@dof.com
Layout
DOF ASA Corporate Communication
Department and Cogency Design
Solutions
Contact
Hilde Drønen
Chief Financial Ocer
DOF ASA
hilde.dronen@dof.com
Distribution
The report is distributed digitally
via the DOF websites, as well as
in printed format from May 2022,
is delivered to key stakeholders
and presented in all DOF oces
around the globe. Quick link to
latest report:
www.dof.com/sustainability
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Alfabygget
5392 Storebø
www.dof.com/sustainability
Document: DOF integrated annual report 2021, Version: 1.00