ANNUAL REPORT 2023 LARS TUFTELAND ENGELSEN
Annual report 2023
Eidesvik Offshore ASA
VESTVIKVEGEN 1, 5443 BØMLO
CONTENTS
2023 – CEO Statement 03
Key figures 04
Corporate Governance 05
HSEQ report for 2023 09
Extract of the Environmental, Social and Governance report 12
The Board of Directors 19
Report of the Board of Directors 2023 23
Declaration by the Board of Directors and CEO 30
Financial statements – consolidated accounts 31
Notes to the consolidated accounts 37
Financial statements – parent company 72
Notes to the annual accounts – parent company 76
Appendix 1 – Alternative performance measures definitions 83
Auditor’s report 84
2
2023 – CEO statement
I am pleased to present Eidesvik Offshore's
annual report for the fiscal year 2023,
outlining our solid financial performance and
strategic progress. Throughout the year, we
have made significant progress in improving
our operational efficiency, strengthening our
capital structure, and executing on our
growth strategy.
In 2023, the OSV market improved
considerably compared to 2022, providing
us with new opportunities that we have
leveraged on. Financially, we delivered a
strong result with improvements across all
key metrics. We successfully refinanced the
company twice, resulting in a robust and
sustainable capital structure. Our efforts
have yielded multiples that we are very
pleased with, reflecting the soundness of
our financial position.
During the year we have been proactive in
reshaping our business landscape. In line
with our strategy, we exited the seismic
market and increased our presence in the
subsea/offshore wind space. The
acquisition of Subsea IMR vessel Viking
Reach underscores our dedication to growth
in our strategic markets, positioning us
favorably for the future. Furthermore, we
have secured new contracts with high-end
clients, and all our vessels are now
operating under long-term agreements.
Growth remains a primary focus for Eidesvik
going forward, founded on our two pillars:
long-term partnerships and long-term
contracts. We are committed to leveraging
the market opportunities ahead, creating
exiting new job opportunities in a future
orientated company and enhancing
shareholder value.
Operationally, we have also delivered
strong performance, achieving high
utilization quarter after quarter.
Unfortunately, in 2023, we encountered
three Lost Time Incidents (LTIs), a figure
that falls significantly short of our goal of
zero LTIs. The safety and well-being of our
employees is our first priority, and we are
fully dedicated to addressing this matter
rigorously.
Sustainability is another key element of the
Eidesvik strategy as we recognize the
expectations of our stakeholders for
responsible conduct and environmental
stewardship. Alongside our annual report
we publish our Sustainability Report,
showcasing our efforts to meet these
expectations. We take pride in yet again
achieving our environmental targets, with
substantial reductions in GHG emissions
per operational day and nautical mile year
on year. Additionally, we continue to lead
the way in demonstrating new climate and
environmental technologies. We believe our
position as a frontrunner in this area will
give us a strong competitive position in a
future market with high ambitions to curb
climate change.
Looking ahead, we remain steadfast in our
commitment to delivering sustainable
growth and value creation. With a solid
financial foundation in place, positive
market outlooks in all our operating
segments, and a dedicated team, we are
well-positioned to capitalize on emerging
opportunities.
I extend my gratitude to our employees,
shareholders and partners for their
continued support and dedication.
3
Key figures
(all figures in TNOK)
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
Operating income
772 359
918 547
587 798
530 760
681 559
489 229
754 716
784 106
1 238 936
984 749
EBITDA
333 567
494 213
178 712
131 113
243 188
96 919
385 291
415 284
770 286
492 173
EBITDA margin
43 %
54 %
30 %
25 %
36 %
20 %
51 %
53 %
62 %
50 %
Profit/loss for the year
533 222
406 736
30 737
-132 434
-690 273
-316 625
147 368
-564 519
-239 892
-230 575
Profit per share
7,05
5,57
-0,25
-1,99
-9,64
-4,83
5,15
-18,34
-6,53
-5,77
Total assets
2 716 109
2 339 034
2 750 583
3 097 113
3 360 275
4 100 576
4 297 512
5 068 060
6 070 157
5 556 166
Equity
1 615 654
928 047
521 098
480 519
729 474
1 424 825
1 542 006
1 457 051
2 041 814
2 125 385
Equity ratio
59 %
40 %
19 %
16 %
22 %
35 %
36 %
29 %
34 %
38 %
Value-adjusted equity
*)
2 136 654
1 593 047
1 402 098
1 284 519
2 094 474
2 291 825
2 434 806
2 701 029
3 676 354
4 190 385
Value-adjusted equity ratio
63 %
53 %
39 %
33 %
44 %
46 %
47 %
43 %
48 %
55 %
Market value at 31 December
1 007 170
559 350
252 951
188 936
325 666
284 647
244 215
186 629
289 139
738 675
Market value per share at 31 December
13,80
9,00
4,07
3,04
5,24
4,58
8,10
6,19
9,59
24,50
Dividend paid per share
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
0,00
1,00
Liquid funds incl. unused credit
498 825
655 653
330 401
429 183
408 319
515 605
557 440
549 738
702 276
549 556
Working capital incl. unused credit,
excl. balloons
433 287
630 725
237 746
527 918
432 256
477 152
264 646
395 827
420 631
-40 897
First year’s repayment of long-term
liabilities
**)
121 192
1 095 934
128 364
157 725
93 756
93 232
304 836
322 187
335 039
391 243
Please see appendix 1 for alternative performance measures definitions.
*) Book equity plus added value of broker estimates per 31 December 2023, on vessels on the assumption that
the vessels are contract-free.
**) Excluding IFRS 16.
4
Corporate governance
PRINCIPLES AND VALUES FOR
CORPORATE GOVERNANCE IN
EIDESVIK OFFSHORE ASA
The Board of Directors of Eidesvik Offshore
ASA (the “Company”) shall ensure that the
Company complies with the “Norwegian
Code of Practice for Corporate Governance”
of October 14, 2021. The Group’s
compliance with, and any deviations from
the code of practice, must be commented by
the Board in relation to every point in the
Norwegian Code of Practice for Corporate
Governance, and made available to the
Company’s stakeholders along with the
annual report.
The purpose of the guidelines for corporate
governance in Eidesvik Offshore ASA is to
clarify the roles between shareholders, the
General Meeting, the Board and executive
management exceeding what is evident by
legislation.
The principles and core values for corporate
governance in Eidesvik Offshore ASA are
set out in the following documents (complete
documents are available from the
Company’s website at www.eidesvik.no):
• The Board’s annual report for the
Company’s corporate governance.
• Articles of Association of Eidesvik
Offshore ASA of May 31, 2023.
• Instructions for the Board of
Directors.
• Instructions for CEO.
• Guidelines for planning and
budgeting.
• The Company’s core values and
ethical guidelines.
• The Company’s guidelines for social
responsibility.
• Guidelines for handling price-
sensitive information and insider
trading.
• Guidelines for determination
salaries and other remuneration to
management.
• Guidelines for use of the auditor as
an advisor to the Company.
• Guidelines for information from the
Company.
The Company shall be based on open
interaction and coordination between the
Company’s shareholders, Board and
management, as well as other stakeholders
such as employees, customers, suppliers,
creditors, public authorities and society in
general.
The Company’s core values and ethical
policy are set out in “Ethical guidelines and
core values for Eidesvik Offshore ASA”, and
its social responsibility policy is covered by
the “Human rights policy” and
“Environmental policy”.
Comment: No deviations from the Norwegian Code
of Practice for Corporate Governance.
Business
The Company’s business is described in
Article 3 of its Articles of Association. The
Board determines the Group’s overall goals,
strategy and risk profile. The strategic plan
is revised annually. The mission statement
in the Articles of Association and the
Company’s goals and strategies are set out
in the Annual Report, which are also
published on the Company’s website at
www.eidesvik.no.
Comment: No deviations from the Norwegian Code
of Practice for Corporate Governance.
Equity and dividends
The Board shall ensure that the Company
holds equity commensurate with the risk
from and scope of the Company’s
operations, cf. “Instructions for the Board of
Directors”. The Board determines the
Company’s dividend policy, and presents
this with its proposed dividend to the
Company’s General Meeting. There is
authorisation for the Board to issue new
shares to increase the Company’s share
capital for up to NOK 364,916. The
authorization is valid until the ordinary
general meeting in 2024, but no later than
30 June 2024.
5
Comment: No deviations from the Norwegian Code
of Practice for Corporate Governance.
Equal treatment of shareholders
Eidesvik Offshore ASA has only one class of
shares.
In the event of an increase in share capital,
the principle of equal rights for all
shareholders to buy shares applies.
Own shares are bought on the stock
exchange at market value.
Comment: No deviations from the Norwegian Code
of Practice for Corporate Governance.
Shares and negotiability
The shares in the Company are listed and
freely negotiable. The Articles of
Association do not impose any form of
restrictions on negotiability.
Comment: No deviations from the Norwegian Code
of Practice for Corporate Governance.
General Meetings
The notice of and procedure for the
Company’s General Meeting follow the
regulations given by the Public Limited
Liability Companies Act with regards to
contents and deadlines. The registration
deadline is set as close to the meeting as
practicable. Shareholders who are unable to
attend may vote by proxy.
Notice of the meeting, proposed resolutions,
proxy forms, other case documents and
information on shareholders’ right to raise
matters at the General Meeting are made
available at the Company’s website as soon
as they have been approved by the Board.
The Board and the chair of the General
Meeting must arrange for the general
meeting to vote for each candidate
nominated for election to corporate bodies.
The minutes of the General Meetings are
made available on the Company’s website
as soon as possible.
Comment: No deviations from the Norwegian Code
of Practice for Corporate Governance.
Nomination committee
The Nomination Committee shall according
the Articles of Association consist of three
to five members. The Nomination committee
shall make proposals for election of Board
Members and members of the Nomination
Committee to the General Meeting. The
General Meeting may adopt guidelines for
the Nomination Committee.
Comment: No deviations from the Norwegian Code
of Practice for Corporate Governance.
Board of Directors: composition and
independence
The composition of the Board of Directors of
Eidesvik Offshore ASA is made to safeguard
the interests of shareholders and the
Company’s need for competence, capacity
and diversity. The Board considers it
important that the Board can function well
as a collegial body.
The Board is composed in such a way that it
can act independently of special interests.
The majority of the members elected by
shareholders are independent of the
Company’s executive management and
major business associates.
At least two of the members elected by
shareholders are independent of the
Company’s main shareholders.
Representatives of the executive
management are not members of the Board.
The Chair is elected by the General
Meeting, as the Company does not have a
corporate assembly.
The Board members are elected for two
years at a time. In the Annual Report, the
Board provides details of the Board
members’ competence and capacity, as well
as which Board members are considered to
be independent.
Board members are encouraged to own
shares in the Company.
Comment: Deviates from the Norwegian Code of
Practice for Corporate Governance in that there is
no mention in the annual report of attendance at
Board meetings. This is not considered relevant as
6
it is very rare directors are not attending Board
meetings, either physically or by telephone/video.
The work of the Board of Directors
A separate instruction for the Board of
Directors of Eidesvik Offshore ASA has
been prepared.
The Group has an audit committee, and the
Board of Directors of Eidesvik Offshore has
established instructions for the audit
committee.
For transactions between companies of the
Group, there are guidelines in “Instructions
for the Board of Directors”.
For significant transactions between the
Company and shareholders, board
members, senior executives or persons
related to them, an independent valuation
must be obtained. This does not apply when
the General Meeting is to discuss the matter
according to the provisions of the Public
Limited Liability Companies Act. The same
applies to transactions between companies
in the Group where there are minority
shareholders.
The instructions for the Board, the
instructions for the CEO, and the ethical
guidelines have rules for impartiality.
Comment: No deviations, all related parties
transactions are presented in the notes to the
financial statement in the annual report.
Risk management and internal control
According to the instruction for the Board of
Directors of Eidesvik Offshore ASA, the
Board ensures that the Company has good
internal control and appropriate systems for
risk management. The Board receives
monthly status reports on Company
operations, including financials with
deviation analysis and liquidity forecasts.
Comment: No deviations from the Norwegian Code
of Practice for Corporate Governance.
Remuneration of the Board of
Directors
The remuneration of the Board is
determined by the General Meeting and
does not depend on results. Information on
remuneration is given in the annual report.
Comment: No deviations from the Norwegian Code
of Practice for Corporate Governance.
Salary and other remuneration for
executive personnel
The Board has adopted guidelines approved
by the annual general meeting for
remuneration for executives stating the
main principles of the Company’s executive
remuneration policy.
Comment: No deviations from the Norwegian Code
of Practice for Corporate Governance.
Information and communications
The Board has adopted guidelines for the
Company’s contact with shareholders
outside the General Meeting. These are set
out in the Board’s annual report. The
Company publishes a financial calendar
each year, and all interim reports and
results presentations are published on the
Company’s website and the Oslo Stock
Exchange.
Comment: No deviations from the Norwegian Code
of Practice for Corporate Governance.
Take-overs
The Board has not prepared guiding
principles for how to act in the event of a
takeover bid.
Comment: Deviates from the Norwegian Code of
Practice for Corporate Governance. With the
current composition of shareholders, a takeover is
not considered likely without the main owner
working in close cooperation with the Board.
Auditor
The external auditor is elected at the
General Meeting, which also approves the
auditor’s fees for the parent company. On an
annual basis, the auditor presents an audit
plan and an audit summary report to the
audit committee, and participates in audit
committee meetings to review the Group’s
internal control and financial risk
management systems and procedures. The
auditor also participates in board meetings
7
when considered appropriate, with and
without management present. Information
about the auditor’s fees, including a
breakdown of audit related fees and fees for
other services is included in the notes to the
financial statements in accordance with the
Norwegian Accounting Act. The Company’s
external auditor is Ernst & Young AS.
Comment: No deviations from the Norwegian Code
of Practice for Corporate Governance.
8
HSEQ report for 2023
INTRODUCTION
The quality and safety system Eidesvik
Management System (EMS) is certified by
DNV to meet the requirements of the ISM
Code, ISO 9001:2015, ISO 14001:2015,
MLC 2006 and the ISPS Code.
Throughout 2023, our EMS are built on
“Simplified and improved safety
management”, and all our operational
vessels are using updated manuals for
bridge, deck, engine, galley, and crane
operations as applicable. We receive very
positive feedback from both users and
clients. Required revisions are considered
on an ongoing basis, including new
procedures as needed. Focus on
awareness and monitoring of health, safety
and environmental aspects are key .
Eidesvik has prepared an annual HSEQ
program that specifically addresses future
focus areas, including Key Performance
Indicators (KPIs). The KPIs are
communicated to all vessels and
departments and posted in public areas both
on vessels and at office. Eidesvik focuses
on a strong commitment to the HSEQ
program to achieve the goals within the
various areas. The guiding documents are
continuously evaluated to ensure optimal
and functioning operating procedures for the
employees both offshore and onshore.
The Company had three lost time incident
(LTI) in 2023. Eidesvik’s goal is zero LTI.
Three LTIs are not acceptable and
underlines the importance of a continuing
strong focus on HSE in all parts of the
Company’s operations.
The statistic below illustrates the number of
personal injuries per million working hours
over the last 5 years.
9
Emphasising the analysis of causal relations
and underlying causes are important as a
basis for lessons learned within Eidesvik.
Focusing on operations and compliance with
the EMS are important accompanying
measures. In addition the goal of preventing
injuries, we also focus on the following
actions:
• Focus on “safety observations”
reporting method, especially
proactive reports. This has
contributed to an increase in
reporting. Reports are reviewed at
safety meetings on board. In 2023,
4,624 “safety observations” were
reported; whereof 40% was
proactive. This constitutes a
substantial portion of the total
number of reports in the HSEQ field.
• Extensive use of risk analysis. All
vessels and office are analysing
tasks/jobs to avoid accidents/
injuries, and any hazards are
highlighted, and actions are
implemented to reduce and/or
remove the hazards. In 2023, 615
new and/or revised risk analysis
were done.
• By holding Toolbox Talk meetings
(TBT), this helps us to avoid
accidents and injuries. The
personnel executing the jobs are
also doing the planning and receive
information on potential hazards in
connection with the job. Total
number of TBT in 2023 was 10,024.
• Work on board is performed
according to a Permit to Work
system (PTW). This helps us to
avoid accidents and injuries.
Everyone needs to obtain
permission from the vessel’s
management before performing jobs
that could cause a risk to personnel,
environment, and vessel.
INCIDENT REPORTING
In 2023, 558 incident reports (including near
misses) in all categories were logged. In
addition, 199 document of change requests
and 135 improvements suggestion was
submitted from vessels and office. The
office issued 29 lessons learned reports to
vessels and office. The incident, near miss,
improvement suggestion, document of
change request, and lesson learned reports
are a positive foundation for learning and
implementing specific actions to avoid
reoccurrences. A strong and healthy culture
for reporting enables the organisation to
identify developments and trends within
specific operations or tasks. This can
improve practices and prevent incidents
from recurring. Reporting of incidents has a
preventive effect, and the Company has a
strong focus on this.
10
QUALITY
Our goal is to provide services of a quality
that exceeds the customer’s expectations,
and we follow up on surveys of customer
satisfaction from every vessel and crew.
Quality is to do the job right first time.
WORK ENVIRONMENT ACTIONS
Please read about Eidesvik’s work
environment actions in the extract to the
ESG report. The full report is available on
the Eidesvik website.
SICK LEAVE
Absence due to illness in 2023 was 5.9% up
from 5.1% in 2022.
Eidesvik has high focus on preventive
actions and closer follow-up from company
and management to increase attendance at
work. Employees have also been enabled
to subscribe to private health services.
11
Extract from the Sustainability report
This section provides a summary of
Eidesvik’s approach to environmental,
social and governance (ESG) issues, and
the associated key performance indicators.
A detailed 2023 Sustainability report is
published as a separate document on the
Company’s website
1
. The report has been
prepared in accordance with the Norwegian
Shipowners' Association Guidelines for ESG
reporting in the shipping and offshore
industries. GRI and SASB are the main
standards used. Determination of material
topics was done in accordance with the
Global Reporting Initiative Materiality
Standard, GRI 3 (2021).
KEY HIGHLIGHTS 2023
In 2023, good progress was made on
Eidesvik’s sustainability agenda. Key
highlights include:
E
• 19% reduction in greenhouse gas (GHG) emissions per operational
day
• 17% reduction in GHG emissions per nautical mile in transit
S
• 100% of suppliers defined as critical for the Company’s operation
have signed Eidesvik’s Counterparty Code of Conduct
G
• Strengthened the Company’s procedural framework for Human Rights
SUSTAINABILITY GOVERNANCE
Eidesvik works proactively to ensure that
ESG is included in all its operations. The
Company has established policies and
procedures to ensure consistent ESG
management and risk mitigation.
Sustainability is anchored with the Board of
Directors (BoD) and the Top Management
Team. The CEO, together with the Top
Management Team, has the overall
responsibility for the integration of
sustainability into Eidesvik’s operations, to
set priorities, targets and drive
implementation, and for including
sustainability in core processes related to
strategy, planning and risk management.
Eidesvik has established an ESG committee
1
Investor Relations – Eidesvik
with representatives from all parts of the
organization. The committee performs
quarterly monitoring of development within
sustainability metrics and evaluates
necessary corrective actions. The
committee is led by the VP Sustainability.
Eidesvik prioritizes the areas within ESG
that are most material to its industry, and
where the Company can have the most
significant impact. Priorities are also guided
by those topics that can have a financial
impact on the Company’s operations.
Overall, Eidesvik’s sustainability work is
focused on the following priorities:
• Be a safe and fair employer
• Reduce our emissions
• Contribute to the energy transition
12
• Be a responsible partner
The priority areas are based on a materiality
assessment that was conducted in 2021,
which included stakeholder dialogue with
employees, suppliers, customers, selected
associations, and investors. Following the
materiality assessment, Eidesvik involved
all areas of operations to define KPIs related
to the material sustainability topics. In 2023
the list of material topics was adjusted in
accordance with the European
Sustainability Reporting Standards (ESRS)
topic list.
In a broader perspective, Eidesvik aims to
contribute to the UN Sustainable
Development Goals, and the Company has
prioritized five SDGs to which it can
contribute the most:
• SDG 8 – Decent work and economic
growth
• SDG 9 – Industry, Innovation, and
Infrastructure
• SDG 13 – Climate Action
• SDG 14 – Life below water
• SDG 17 – Partnership for the goals
13
KEY TARGETS AND PERFORMANCE
2
New KPI for 2023
Target
Status
2023
2022
2021
SDG
Environmental
50% reduction in CO
2
e
emissions by 2030, climate
neutral fleet by 2050
(baseline 2008)
32% (PSV)
21 %
(Subsea/Wind)
27.5%
(PSV)
17.1%
(Subsea/Wind)
21.7% (PSV)
13.7%
(Subsea/Wind)
Yearly reduction in tons CO
2
e
emissions per nautical mile
17%
0%
22%
Yearly reduction in tons
CO
2
e emissions per
operational day
19%
21%
14%
Zero spills to sea
0,002 m3
(7 spills)
0.4 m3
(21 spills)
4.3 m3
(19 spills)
Social
Employee satisfaction (eNPS
scope >30)
23
26
37
Trainee rate 7% of workforce
9.9
8.9
9.3
Performance appraisal
reviews (100%)
72
73
70
Zero Lost Time Incidents
3
0
0
<1 TRCF1
1,47
0,53
0.46
Governance
All suppliers representing 25
MNOK+ or defined as critical
for our operations will be
audited within a three-year
period
2
2
1
100% of suppliers defined as
critical for our operation to
sign Counterparty Code of
Conduct
2
100%
-
-
0 fines or non-monetary
sanctions due to non-
compliance with laws and/or
regulations related to human
rights, corruption and other
unethical business practices.
0
0
0
14
ENVIRONMENTAL IMPACT
The shipping industry may have negative
implications for both human and ecosystem
health in the form of emissions, pollution,
spills, and discharges. The Company’s
ability to manage these risks and to mitigate
the negative environmental impact is critical
not only for the environment, but also for
Eidesvik’s business.
Eidesvik strives to be a frontrunner within
future oriented shipping and marine
operations, and to position the Company at
the forefront of the development of zero-
emission shipping solutions. To reach this
goal, the Company is actively engaged in
both reducing greenhouse gas emissions
from its fleet, and to contribute with the
development of new technology that will
reduce emissions across the industry.
Eidesvik recognizes that climate changes
pose risks on the Company’s business
strategy. This is why Eidesvik in 2021
conducted a climate risk review in
accordance with the Task Force on Climate
Related Financial Disclosures (TCFD).
Please see the 2023 Sustainability report
3
for the full review.
Furthermore, the Company acknowledges
that the transition from fossil fuels to clean
energy will have a high impact on its fleet
and operations in the long term. However,
Eidesvik assesses the financial impact to be
moderate to low, as oil & gas will need to be
replaced with new energy markets also in
need of offshore shipping services. Eidesvik
has extensive experience in the renewable
markets and has proven expertise and
capability to transition to new markets. As a
risk mitigating measure, the Company is
also closely monitoring new markets where
it can utilize its core competencies.
Ambitious climate goals will also
necessitate stricter emissions requirements
for shipping, which will have a significant
impact on Eidesvik’s fleet in the medium to
long term. Though the Company recognizes
that the topics of climate change mitigation
and adaptation have high impact materiality
3
Investor Relations – Eidesvik
for Eidesvik, it considers the financial
materiality associated with these topics to
be moderate to low. Eidesvik has a long
history of being early adopters of alternative
energy sources and new technology.
Currently, 83% of its fleet is equipped with
battery hybrid systems, and close to 40%
has LNG dual fuel engines. This ensures
that the current fleet can comply with known
emission regulations in the short and
medium term. In the long term, stricter
requirements necessitating a transition to
new carbon-free fuels will come with a
considerable cost. Despite the prevailing
contract structures within the offshore
industry, wherein charterers largely bear the
costs of meeting existing requirements and
regulations, the inherent risk persists at a
significant level. Nonetheless, Eidesvik’s
anticipation is for forthcoming regulations to
offer the necessary predictability, rendering
compliance financially feasible.
CLIMATE CHANGE MITIGATION
AND ADAPTATION
Eidesvik’s ambition is to have a climate
neutral fleet by 2050. The Company’s mid-
term goal is to reduce emissions by 50% in
2030, compared to a 2008 baseline. These
ambitious targets represent a considerable
undertaking, necessitating a thorough
transition to new and green fuels for a
substantial portion of the sailing fleet in
combination with the introduction of
newbuilds equipped with zero-emission
technology. The Company has developed
different scenario roadmaps for how to
reach the targets with the current fleet. In
one of these roadmaps the 2030-target will
require a successful transition to new and
green fuels for six vessels including the
addition of two close-to-zero emission
newbuilds. Eidesvik believes that its 2030
target is feasible, however recognizes that
the outcome is subject to external factors
beyond the Company’s control. Firstly, the
target relies on the establishment of new
environmental requirements that create a
market for low and zero emission vessels,
coupled with the assurance of sufficient
returns. Until such a market is in place, the
transition is dependent on effective public
funding schemes that meet the
requirements of the offshore industry.
15
Furthermore, the industry needs to see a
continued maturation and widespread
commercialization of zero-emission
technology and fuel infrastructure. As a
shipowner Eidesvik is committed to do its
part in terms of investigating a range of fuel
and technologies that has the potential to
take the Company to a 50% reduction in
2030 and carbon neutrality in 2050. By the
end of 2023, Eidesvik had achieved a 21%
reduction in emissions from its subsea/wind
fleet and 32% for the PSV fleet compared to
a 2008 baseline.
EMISSION REPORTING
For its sustainability reporting Eidesvik’s
Climate Accounts are based on the
international standard ‘A Corporate
Accounting and Reporting Standard’,
developed by the Greenhouse Gas Protocol
Initiative (GHG Protocol), which is the most
widely used and recognized international
standard for measuring greenhouse gas
emissions. Greenhouse gas emissions
related to scopes 1, 2 and 3 have been
converted into carbon dioxide equivalents
(CO₂e).
Eidesvik’s Scope 1 emissions are derived
from the vessels the Company owns and
operates. For reporting Eidesvik has applied
the principle of “equity share”, in which it
accounts for GHG emissions according to
the Company’s share of equity in the
vessels in operation. In 2023, Eidesvik’s
Scope 1 amounted to 59,414 metric tons
CO2e. This is a decrease of 16,420 tons
from 2022. A portion of this reduction can
be attributed to the sale of one vessel in
November 2022. The Company expanded its
fleet again with the acquisition of one vessel
in April 2023. Considerable reductions have
also been achieved through increased use
of shore power and energy efficiency
measures such as speed reductions and hull
cleaning.
Overall, emissions of CO₂e per nautical mile
in transit decreased from 0.209 tons in 2022
to 0.173 tons in 2023. CO₂e emissions per
operational day decreased from 23.98 tons
in 2022 to 19.58 tons in 2023. Eidesvik’s
goal is to have yearly reductions in these
two performance indicators. Due to the
scope of operations for offshore vessels, the
GHG emissions intensity indicators used by
the IMO, such as the AER, are not suitable
for offshore operations. AER is calculated
on the basis of a ship’s carbon emissions
per actual capacity-distance, however
offshore vessels are not dedicated to cargo
transport. Offshore vessels also spend
much of their operational time in Dynamic
Positioning (DP). A process is ongoing in
IMO/IMCA to define suitable GHG emission
intensity metrics for offshore vessels. While
awaiting clarification, Eidesvik has chosen
to monitor CO₂e emissions per nautical mile
in transit and per operational day as this
gives a better picture of its development.
Linking the indicator to a work proxy is also
in line with the suggestions presented by
IMCA to IMO as a suitable method for
measuring carbon intensity for offshore
vessels.
Key initiatives in Eidesvik’s work to reduce
Scope 1 emissions are:
• The Eidesvik Energy Efficiency
Program blue:E (EEEP) - a set of
measures to reduce energy
consumption and GHG emissions
has been defined and implemented
on each vessel.
• Retrofitting – installing battery
hybrid systems and shore-based
power systems on our existing fleet
o 83% of our vessels in
operations have battery
hybrid systems installed
o 62% of our vessels in
operation can utilize shore
based power
• Participation in research and
development projects involving new
technologies and green fuels.
Efforts also go beyond focusing on carbon
emissions. The company aims to minimize
any forms of pollution to air and sea.
Eidesvik complies with all laws and
regulations related to waste management
and air pollution, and the Company has
established a plan to be compliant with the
Ballast Water Management Convention. In
2023 Eidesvik converted two vessels in
accordance with the requirements of the
OSV Code increasing their capabilities for
carrying hazardous liquid substances in
bulk. The Company plans to convert four
additional vessels in 2024.
16
Eidesvik uses LNG and low-sulfur emissions
to fuel its vessels, which result in less
emissions of SOx, NOx and PM. The aim is
to have zero spills, and the company has
systems in place to mitigate the risks of such
events happening. If spills do happen, the
incidents are reviewed so that the
organization can learn from them.
HEALTH AND SAFETY
Safety is Eidesvik’s number one priority.
The Company’s personnel often operate
under challenging conditions, particularly
when working on board vessels. This
requires a strong safety culture with a
continuous focus on improvement. Eidesvik
works systematically with health and safety
to mitigate risks that can expose its
employees and third parties to injuries or
health related challenges. The Top
Management Team is focused on incident
reporting, training, awareness work and
sharing best practice across the fleet to
prevent incidents from happening. The
Company’s quality and safety system
“Eidesvik Management System” (EMS) is
certified by DNV GL and meets the
requirements of the ISM code, ISO
standards: 9001-2015, 14001-2015, MLC
2006 and ISPS Code.
Eidesvik’s Lost time incident rate (LTIR) was
1.47 in 2023 compared to 0 in 2022. This
number is far from the target of 0 LTIs, and
the Top Management Team is addressing
the issue rigorously. The Company has
implemented measures such as enhancing
the frequency of Management vessel visits
and ensuring that safety is prioritized across
all its communication channels.
Absence due to illness was 5.9% in 2023
compared to 5.1% in 2022. Eidesvik is
focused on preventive actions, both related
to the physical and psychosocial working
environment, and closer follow-up from the
Company and management to increase
attendance at work.
WORKING ENVIRONMENT
Eidesvik’s ambition is to have highly
qualified employees that are able to execute
Company strategy and deliver high quality
services. Furthermore, the Company
believes that creating a diverse and
inclusive working environment where all
employees feel valued and have equal
career opportunities is not only the right
thing to do but is financially beneficial for its
business.
Eidesvik’s priorities in this area include:
• Securing an inclusive and safe
working environment for all, with
zero tolerance for bullying and
harassment.
•
High focus on retaining and
developing employees.
•
Maintaining a dynamic apprentice
program through the availability of a
wide range of trainee and cadet
positions.
•
Ensure high quality leadership at all
levels of the organization.
• Supporting competence
development through a combination
of formal training, on the job training
and own initiative.
Eidesvik uses the Employee Net Promoter
Score as a measure for employee wellbeing.
Scoring ranges from minus 100 to 100. The
aim is a score above 30. In 2023, the score
was 23, which is a decrease from 26 in
2022. The main reason identified for the
decline is structural differences in pay rates
where pay rates in the offshore industry are
lower than in other industries in need for the
same seafarer competence as Eidesvik, for
example the aqua culture industry. Another
reason identified is fewer carrier
opportunities caused by the last years'
challenging situation in the offshore oil and
gas industry in which the Company has not
been able to grow its fleet.
Eidesvik has a strategy for growth and is
working on identifying opportunities to
expand its fleet. One newbuild for the
subsea and offshore wind industries was
announced in early 2024. All seafarers are
covered by collective bargaining
agreements between the Norwegian
Shipowners’ Association and the seafarer’s
unions. The Company is actively engaged in
discussions and negotiations regarding
these agreements.
17
Eidesvik aims to give all employees the
opportunity to participate in annual
performance and career development
reviews. In 2023, 72% of employees
completed such reviews.
EQUALITY AND INCLUSION
Eidesvik considers it a competitive
advantage to have a diverse team, and does
not tolerate discrimination based on race,
caste, national origin, religion, age,
disability, gender, marital status, sexual
orientation, union membership or political
affiliation. In accordance with the Norwegian
Equality and Anti-Discrimination Act, the
Company has developed an Equality Efforts
Compliance procedure that covers its
obligations related to activity duty and
reporting. VP Human Relations is
responsible for defining targets and
responsibilities. Through the procedure,
Eidesvik uses its annual employee survey to
investigate whether there is a risk of
discrimination. The survey results are
presented internally and discussed in detail
with union representatives and management
both onshore and offshore. Together these
parties define necessary measures and
actions for areas in which risks are defined.
Furthermore, Eidesvik performs internal
audits to investigate compliance with
policies related to work environment and the
Company’s non-tolerance for harassment.
The requirements of the Equality and Anti-
Discrimination Act are also integrated in
Eidesvik’s recruitment procedure. In 2023,
Eidesvik experienced zero breaches of its
Human Resources Policy.
At the end of 2023, Eidesvik employed 416
people, where females accounted for 11%
(46). 6% of the Company’s seafarers were
female. The male domination of the shipping
industry is reflected in these figures. At the
Top Management level 40% were female
and 46% of onshore personnel were female.
No employees at Eidesvik are employed on
a part-time or temporary basis.
Table 1: Gender distribution
MALE FEMALE <30 30-50 >50 TOTAL
Seafarers
343 23 135 141 90 366
Onshore
27 23 2 22 26 50
Top Management
2 3 0 1 4 5
Board of
Directors
5 3 0 2 6 8
Eidesvik has guidelines in place for salary
placement and salary adjustment. The
guidelines are outlined in the Company’s
Employee Handbook, which is based on the
Company’s HR policy and Code of Conduct.
Eidesvik analyses the gender pay gaps of its
employees. A salary comparison of
employees at all levels shows that women’s
income was 80.3% to that of men’s in 2023.
The majority of Eidesvik’s employees are
seafarers. All seafarers are covered by
collective bargaining agreements between
the Norwegian Shipowners’ Association and
the seafarer’s unions, who set wage
agreements that a Company cannot deviate
from. These agreements ensure equal
treatment in relation to wages and working
conditions.
18
For the pay gap analysis onshore
employees have been divided into
“Management” and “Other Employees”. For
Managers, women’s income was 87.3% to
that of men’s in 2023. The group "Other
Employees” consists of job categories with
large variations in competence
requirements, pay levels and differences
regarding what positions are held by women
and men, such as technical specialists and
administrative positions. Technical
specialists have substantial specialized
competence and experience, and thus have
a higher pay compared to administrative
positions. These positions are typically held
by individuals with experience as seafarers
at management level, whereof the majority
are men. The majority of administrative
positions in Eidesvik are held by women.
Table 2: Gender pay gap ratio for onshore employees
GROUP
TOTAL NUMBER OF
EMPLOYEES
FEMALE
MALE
RATIO OF BASIC
SALYARY OF WOMEN
TO MEN
Management
21 10 11 87.3%
Other employees
29 12 17 68.2%
1 female and 4 males took parental leave
in 2023. The average number of weeks was
36 weeks for females, and 4 weeks for
men.
A full description of the Company’s work
within equality and inclusion can be found
in the 2023 Sustainability report.
LABOR CONDITIONS AND HUMAN
RIGHTS
Eidesvik aims to carry out its business in a
way that supports and respects the
protection of internationally proclaimed
human rights. The Company does not
engage in, or support the use of, child labor,
and support the elimination of all forms of
forced labor, as outlined in its Code of
Conduct. Eidesvik has measures in place to
ensure that all employees, onshore and
offshore, are working under conditions that
meet the requirements set out in the
International Labour Conventions and the
Maritime Labour Conventions. Freedom of
association and the right to collective
bargaining is respected and outlined in the
Code of Conduct.
In 2023 Eidesvik developed a Human Rights
Policy that describes the Company’s
4
https://fproof.no/
approach to managing human risks in its
operations. To ensure suppliers are
informed about the high ethical standards
Eidesvik expect, the Company has
established a Counterparty Code of Conduct
(CCoC) which incorporates issues related to
anti-corruption, human rights, labor
conditions and environmental issues. This
CCoC is attached to all requests and
purchasing orders, and all new suppliers are
obligated to read and follow the
expectations stated in the CCoC.
To further expand the Company’s
c
ompetence related to human rights
Eidesvik has signed the Future-Proof
Initiative
4
. Future-Proof is a business and
human rights collaboration platform created
by The Bergen Chamber of Commerce and
Industry and the Rafto Foundation. The aim
is to assist businesses in complying with
their human rights responsibilities and
enable knowledge sharing within and across
industries. Eidesvik is committed to be an
active participant in this platform.
REPORTING UNDER THE
NORWEGIAN TRANSPARENCY ACT
In 2022, the Norwegian Transparency Act
entered into force. The Act shall promote
19
enterprises' respect for fundamental human
rights and decent working conditions in
connection with the production of goods and
the provision of services and ensure the
general public access to information
regarding how enterprises address adverse
impacts on fundamental human rights and
decent working conditions.
Eidesvik recognizes that the nature of our
business and the shipping industry does
propose a risk that the Company’s
operations may cause adverse impacts on
labor conditions and human rights in its
value chain. In accordance with the
Norwegian Transparency Act Eidesvik has
developed a Company Due Diligence
procedure to identify, prevent or mitigate the
Company's risk for, and actual negative
impact on, basic human rights and decent
working conditions including in the supply
chain and through its business relations. As
part of our due diligence procedure,
Eidesvik performs annual risk assessments
where it identifies inherent risk areas and
scores and evaluates these impact areas in
its risk assessment tool. The Company
evaluates severity, likelihood, priority, and
mitigation on each impact area.
Relevant elements that Eidesvik base its
risk assessment on are country, type of
industry, and type of raw materials. Mapping
and prioritizing risks is a continuous process
where the Company’s target is to implement
measures where the risk of adverse impacts
and its opportunity to influence is the
greatest. Examples of salient risk areas
identified are:
Use of shipyard labor: Export Finance
Norway has identified repeated examples of
breaches on fundamental human rights in
European yards – something we have also
seen recent examples of in Norwegian
yards. As a result of our due diligence
process Eidesvik has implemented
guidelines to ensure all yards will be audited
before entering into an agreement. The
audit checklist incorporates issues related
to human rights, labor rights, health and
safety policies, environmental aspects and
non-discrimination.
Use of personnel services from risk
countries: Eidesvik is a purchaser of
crewing services from the Philippines. The
Philippines is defined as a risk country for
breaches on human rights, and Eidesvik has
implemented a range of measures to ensure
our operations do not result in any adverse
effects. The measures include bi-annual on-
site audits, crew conferences, and monthly
management meetings with the Company’s
supplier.
No adverse impacts were identified in 2023.
A full account of the due diligence process,
defined risk areas and measures
implemented is published on our website
5
.
BUSINESS ETHICS AND ANTI-
CORRUPTION
Eidesvik is committed to operating with the
highest ethical standards in all its
operations. The Code of Conduct is the main
governing document outlining the
Company’s principles, rules and
expectations regarding ethical business
practices. Eidesvik conducts its business in
compliance with all anti-bribery, anti-
corruption and anti-money laundering laws,
rules and regulations including, but not
limited to, the UK Bribery Act 2010, the US
Foreign Corrupt Practices Act 1977, the
Norwegian Penalty code section 276 a – 276
c and other legislation applicable. Eidesvik
has not been involved in any legal
proceedings associated with bribery,
corruption, or anti-competition in 2023.
When conducting operations in countries
with a higher risk of corruption, the
Company conducts a risk assessment for
that specific country in line with established
policies and procedures.
Eidesvik has a whistleblowing function in
place, which all employees and externals
can utilize to report breaches of the Code of
Conduct or any form of unethical business
conduct.
5
https://eidesvik.no/sustainability/responsible-
business-conduct/
20
The Board of Directors
ARNE AUSTREID (CHAIR OF THE
BOARD)
is a mechanical engineer/petroleum
engineer from Stavanger Ingeniørhøgskole,
and holds an MBA from the University of
Aberdeen, UK. From January 2011 to
December 2020 he was the CEO of
Sparebank 1 SR-Bank ASA. He has
previously worked for Transocean ASA and
Prosafe SE, offshore, onshore and abroad,
where his final position was President and
CEO of Prosafe SE. Today he is chairperson
of North Sea Energy Park AS, Westcon
Group AS, Westcon Yards AS and GL
Gruppen AS, and attending deputy board
member for OBOS. Austreid is independent
of the main shareholder in the Company.
BJØRG MARIT EKNES (BOARD
MEMBER)
graduated with a Master in Business and
Economics from NHH in 1993, and has an
MBA from Bond University, Australia (2006),
and an Executive MBA from NHH (2021).
She has held various managing positions in
the Sparebanken Vest group from 1997 to
2021, and was part of the executive
management from 2013 to 2021. Since 2021
she has been director and part of the top
management at the Norwegian School of
Economics. She is today the chairperson of
Landkreditt Bank AS, and has sat on a
number of boards. Eknes is independent of
the main shareholder in the Company.
ANNICKEN GANN KILDAHL (BOARD
MEMBER)
holds a Master of Business and Economics
from BI Norwegian Business School and is
a Certified Financial Analyst from the
Norwegian School of Economics and
Business (NHH). Since 2000, she has
worked in the family-owned Grieg Maritime
Group, as CFO with responsibility for
finance, economics, legal and sustainability
reporting. Previously, she served as a board
member and chair of the audit committee of
Ocean Yield ASA between 2013-2021.
Kildahl is independent of the main
shareholder in the Company.
JOHN STANGELAND (BOARD
MEMBER)
is a mechanical engineer by education, and
has a BBA in economics and management
from University of Texas, Austin. He also
has an Executive MBA from BI and Nanyang
Technological University, Singapore from
2011. He was a shipbroker in Seabrokers
AS, Stavanger from 1990 to 1997, and then
a business developer in Eidesvik AS until
2003. Since 2004 he has been employed by
the base company NorSea Group AS, and
he has been CEO since 2012. Stangeland is
independent of the main shareholder in the
Company.
PETTER LØNNING (EMPLOYEE
ELECTED BOARD MEMBER)
is a chief engineer on Eidesvik’s Viking
Neptun and is an employee representative.
He started his maritime career on fishing
vessels, before he completed his
engineering education while also working on
vessels for local sand shipping companies.
Lønning has been employed by Eidesvik in
the period 1992-2000 and since 2001, and
has been involved in the construction of
seven new vessels. Lønning is independent
of the main shareholder in the Company.
KRISTINE SKEIE (BOARD MEMBER)
is general manager and co-owner of HK
Shipping Group AS, which wholly or partly
owns 24 bulk vessels. She was educated at
Norges Varehandelshøgskole (now part of
BI) and has further educations in board
work, organisation and management, and
tax law. Skeie is independent of the main
shareholder in the Company.
21
LARS EIDESVIK (BOARD MEMBER)
is the co-owner and general manager of Evik
AS, which owns 45% of Eidesvik Invest AS.
Eidesvik Invest AS owns 60% of Eidesvik
Offshore ASA. Lars Eidesvik is associated
with the main shareholder in the Company.
LAURITZ EIDESVIK (BOARD
MEMBER AND DEPUTY CHAIR OF
THE BOARD)
is co-owner and chair of Bømmelfjord AS,
which owns 55% of the shares in Eidesvik
Invest AS. Eidesvik Invest AS owns 60% of
Eidesvik Offshore ASA. He has nautical
training and experience as a ship’s officer,
and an Executive MBA in Developing and
Managing Digital Organisations from BI from
2020. Since 2008, he has held various
positions in Eidesvik AS within operations,
technical, HSE, strategy, and most recently
as chartering manager, leaving in the
summer of 2018 to join the family company
Bømmelfjord AS. Lauritz Eidesvik is
associated with the main shareholder of the
Company.
22
Report of the Board of Directors 2023
Eidesvik Offshore ASA’s (“Eidesvik”, the
“Company” or the “Group”) focuses its
business within platform supply vessels,
subsea and offshore wind and position the
Company at the front end of the
development of zero emission shipping
solutions. The main goal is to increase the
Company’s long-term financial and
sustainable value creation, thereby growing
shareholder value creating the basis for
further growth, and secure jobs .
2023 continued to see improvement in the
OSV market compared to 2022. This was
driven by increased activity within oil & gas
and a continued realisation and focus that
oil & gas needs to be a conduit and a long
term participant in the transition to
sustainable energy supply and
consumption, and will continue to deliver
energy in the forceable future. The offshore
wind market continued to struggle with
returns and postponed projects, but long-
term sentiments in the market remains
positive. Interest rates and inflation
increased further although the end of the
year saw some slowdown for both. Long
lead times and limitations in the supply
chain continued.
Utilisation for vessels in Eidesvik’s
segments have continued to increase during
the year. With limited capacity in the market,
rates have also seen continued
improvement. All of Eidesvik’s vessels are
now on long term contracts.
The company exited the seismic space in
2023 and sold its four vessels that had been
in layup for an extended period of time.
None of the vessels are sold to buyers within
the seismic space.
Eidesvik refinanced its long- term debt
facility for its wholly owned vessels twice in
2023. First on 28 March 2023, extending
maturity and then again in Q4 2023,
securing more attractive terms and further
extended maturity till December 2027 with a
facility that aligns better the Company’s
growth plans and shareholder interests.
The Company acquired a second-hand
vessel via a company where Eidesvik has
the controlling interest (50.1%). The vessel
named Viking Reach is on a 6 -year charter
with Reach Subsea who is also the minority
owner in the vessel owning company. In
connection with this acquisition Eidesvik
raised NOK 130 million in equity in a private
placement.
THE BUSINESS
At the end of 2023 the group operated
thirteen vessels, with ten vessels wholly or
partly owned by the Group and three vessels
under management.
Eidesvik aim to charter the vessels mainly
on long-term contracts on sustainable day
rate levels in the Supply and Subsea/Wind
segments. Eidesvik’s activities are managed
from the headquarter in Langevåg at Bømlo.
The shipping business is organised in
accordance with the special tax regime for
shipping companies in Norway. The vessels
are owned by various ship-owning
companies, and Eidesvik AS performs the
general and business management
functions for these companies.
The Group’s wholly-owned subsidiaries had
416 permanent employees at the end of the
year, and in addition there were 76
contracted workers. The Company and the
industry encourage women to seek a
maritime education. We currently have
several women in leading positions. As part
of an international industry, the employees
in the Group represent many nationalities.
Our focus is to make all employees,
regardless of nationality, gender and
cultural background, have equal career
opportunities in the Group, and we see
nothing to suggest that this is not the case.
HEALTH, SAFETY AND THE
ENVIRONMENT
The quality and safety system “Eidesvik
Management System” (EMS) is certified by
DNV. EMS meet requirements of ISM code
(International Safety Management Code),
23
ISO standards: 9001-2015, 14001-2015,
MLC 2006 and ISPS Code.
The management is continuously carrying
out awareness work within Health, Safety,
Environment and Quality (HSEQ), with a
particular focus on the exchange of lessons
learned, which facilitates continuous
improvement.
Absence due to illness in 2023 was 5.9% up
from 5.1% in 2022. The Company is
maintaining the agreement with NAV on
inclusive working life, which aims to follow
up on absence due to illness.
The Group had three lost time incidents
(LTI) in 2023. Eidesvik’s goal is zero LTI.
Three LTI’s are not acceptable and
underlines the importance of a continuing
strong focus on HSE in all parts of the
Group’s operations.
EXTERNAL ENVIRONMENT
Eidesvik has a targeted environmental focus
in its operations with battery solution
installed on all PSV’s and three of the
subsea/offshore wind vessels. Furthermore,
five of the PSV’s have LNG dual fuel
engines. The Company continues its efforts
to develop environmentally friendly and
energy efficient vessels with participation in
research projects in relation to ammonia as
fuel.
All vessels in Eidesvik’s fleet are approved
according to the new International Maritime
Organization (IMO) requirements for energy
efficiency.
The Environmental Ship Index (ESI) is
recognised by the Norwegian Coastal
Administration and many ports as the basis
for environmental differentiation of
fees/rates. 11 of our operational vessels are
registered in ESI, all with a strong
environmental profile.
A separate sustainability report has been
prepared, and an extract of the report is
included in the annual report. Please read
more about Eidesvik’s impact, and our
actions for reducing the impact, on the
external environment in the extract. The full
report is available on the Eidesvik website
(Sustainability – Eidesvik). The report has
been prepared in accordance with the
Norwegian Shipowners' Association
Guidelines for Environment, Sustainability
and Governance (ESG) reporting in the
shipping and offshore industries.
Determination of material topics was done in
accordance with the Global Reporting
Initiative Materiality Standard, GRI 3
(2021).
In addition, a HSEQ report has been
prepared, and is included in the annual
report.
SHAREHOLDERS, CORPORATE
GOVERNANCE AND MANAGEMENT
At year end, there were a total of 72,983,333
shares in the Company and 2,477
shareholders in the Company where foreign
investors had a 3.14% stake. In 2023, the
share was last traded at NOK 13.80.
As of 31 December 2023, the Company
owned no own shares.
All information is provided in such a way that
all shareholders are treated equally. The
information is shared through stock
exchange announcements, press releases
and open presentations, and is also
available on the Eidesvik website.
Eidesvik’s dividend policy is the following:
EIOF’s priority for the use of free cash flow
is investment opportunities providing value
added return and thereafter return of capital
to its shareholders via dividend.
The Group has an insurance agreement (the
“Agreement”) for physical persons that
previous had, currently has, or in the future
will hold positions as member or deputy
member of a board or a corresponding
governing body, CEO, other leader and/or
employee that may incur personal leader
responsibility. The Agreement cover their
partner as well in cases where the claim is
based on the insured personal leader
responsibility.
The Agreement is a group coverage for
Eidesvik Offshore ASA, including all
subsidiaries with ownership of 50% or more.
The Agreement applies to property damage
24
that may incur worldwide for business
related to shipping and that the insured
person is liable in damages for according to
applicable law in Norway. The sum insured
is NOK 50 million per insurance event and
total per year. Internal claims between the
companies are not covered.
The Agreement does not cover criminal acts
as breach of information protection, forge of
documents, embezzlement, theft, fraud,
betrayal, corruption, and/or unjustified gain.
The Agreement does not cover fines/day
fines, libels and/or remedy for noneconomic
loss, nor liabilities after the Nature Diversity
Act or property damage related to pollution
or tipping of waste.
The “Norwegian code of practice for
corporate governance” forms the basis for
the discharge of these duties by the Board
and management. Minor, company-specific
changes and adaptations have been made
to the code of practice. A separate
explanation has been provided in the annual
report and on the Eidesvik website.
PROFIT & LOSS, BALANCE SHEET
AND FINANCIAL RISK
The consolidated accounts of the Eidesvik
Offshore Group (“the Group”) have been
prepared in accordance with recognition,
measurement and presentation principles
consistent with IFRS® Accounting
Standards as adopted by the EU (“IFRS”)
The Company accounts for the parent
company Eidesvik Offshore ASA are
prepared in accordance with the Norwegian
Accounting Act and generally accepted
accounting principles in Norway.
Profit & loss
Consolidated operating income for Eidesvik
in 2023 was NOK 772.4 million (918.5
million in 2022). Freight revenue increased
from 634.7 million to 699.5 million. This
increase in revenue was due to
improvement in rates.
Operating profit before depreciation and
amortisation (EBITDA) for 2023 was NOK
333.6 million (494.2 million in 2022).
Adjusted for the gain on the sale EBITDA
was NOK 275.0 million vs 224.5 million.
Depreciation and amortisation totaled NOK
161.0 million in 2023 (142.9). Reversal of
previous impairment due to observed
indicators such as improved market
conditions was NOK 409.1 million (209.2
million in 2022). Loss from joint ventures
were NOK -4.4 million (NOK -9.1 million).
This gives a total operating result of NOK
577.2 million in 2023 (NOK 551.4 million).
Adjusted for reversed impairment and gain
on sale EIOF saw an improvement in
operating profit driven by improvement in
rates. The Company saw increase in
personnel expenses compared to previous
year due to general salary increase. The net
financial result of NOK -44.0 in 2023 (-144.6
million in 2022) includes financial income of
NOK 30.5 million (65.6 million). Financial
and interest expenses were NOK -75.3
million (-93.8 million), and the net gain/loss
on currency and derivatives were NOK 0.8
(-116.4 million). The reduced currency
movement is due to a smaller portion of the
company’s debt being in USD.
Profit/loss after tax was NOK 533.2 million
in 2023 (406.8 million in 2022.) and total
comprehensive income was NOK 532.3
million (406.9 million).
For the parent company Eidesvik Offshore
ASA, the profit/loss after tax was NOK 205.0
million (9.7 million).
Balance sheet
The consolidated book equity is NOK 1,616
million per 31 December 2023 (928 million
per 31 December 2022). This is 59.5%
(39.7%) of the Group’s total capital. For the
parent company, Eidesvik Offshore ASA,
the equity is NOK 791.5 million (480.5
million).
Vessels account for NOK 1,675.1 per 31
December 2023 (1,062.8 million per 31
December 2022), of the non-current assets
of NOK 1,930.6 million (1,348.1 million). The
increase in vessel value is due to the
reversal of previous impairment and the
acquisition of the secondhand vessel Viking
Reach. Current assets were NOK 785.5
million (910.3 million). Total assets are NOK
2,716.1 million (2,339.0 million), an
increase of NOK 377.1 million.
25
Broker values are used to support the
assessment and decisions made by value in
use calculations. Average broker value
conducted by two independent brokers
evaluate the consolidated part of the fleet
value free of charter to NOK 2,196 million
(1,809 million at 31 December 2022) which
indicates an excess value before tax of NOK
521 million (665 million) compared to the
book value of the vessels.
The Group’s non-current liabilities are NOK
748.2 million per 31 December 2023 (97.1
million per 31 December 2022). The
increase was due to the majority of the
Company’s long-term debt per 31 December
2022 being classified as short term prior to
completion of refinancing.
The parent company’s assets are NOK
1,021.1 million per 31 December 2023
(815.3 million per 31 December 2022). The
company’s assets consist mainly of
investments in and loans to subsidiaries,
financial investments and cash. The
company has liabilities of NOK 221.3 million
(334.8 million). This consists of non-current
liabilities of NOK 193.5 million (332.4
million) and current liabilities of NOK 35.9
million (2.4 million). The company’s equity
is NOK 791.5 million (480.5 million), which
gives an equity ratio of 78% (59%).
Cash flow
Cash and cash equivalents decreased from
NOK 655.7 million 31 December 2022, to
NOK 498.8 million 31 December 2023,
whereof NOK 92 million was restricted cash
and funding restricted to use towards
Eidesvik’s joint development projects with
multiple partners for the development of
green ammonia as a fuel source. The
reduction in cash is mainly due to
substantial downpayment of debt in
connection with the initial refinancing in
2023.
Net cash flow from operating activities for
2023 was NOK 251.3 million (208.9 million).
Net cash flow from investment activities of
NOK - 172.6 million (1,171.4 million) was
due to purchase of the vessel Viking Reach,
sale of seismic vessels and ancillary
equipment, periodic maintenance on
existing vessels and payment of long-term
receivables.
The Group has a negative cash flow from
financing activities of NOK -236.8 million (-
1,061,8 million). This is mainly related to
refinancing including repayment of debt,
capital raise in relation to Viking Reach, and
paid instalments and interests.
The parent company has cash and cash
equivalents of NOK 28.5 million (437.0
million). This is an increase of NOK 298.8
million.
Profit allocation
The Board in Eidesvik Offshore ASA has
proposed a dividend payment of NOK 0.25
per share to be paid in 2024, for the fiscal
year 2023 (total NOK 18.2 million). NOK
195.7 million is proposed transferred to
other equity.
Going concern
The financial statements are prepared on
the basis of going concern.
Financial risk
Currency risk
In 2023, Eidesvik had its revenue in NOK,
USD and EUR. Operating costs are mainly
in NOK. Eidesvik is therefore exposed to
fluctuations in the exchange rates between
NOK and the other currencies. The Group
has a part of its long-term financing in USD.
Interest and amortization on this debt is
covered by revenue in USD. Forward
contracts are also made where parts of the
operational income in EUR are presold with
settlement in NOK.
Credit risk
Eidesvik’s customers are solid companies
with good solvency. The risk that the
counterparties do not have the financial
capacity to fulfil their obligations is
considered low.
26
Liquidity risk
The liquidity position is assessed as
satisfactory as long-term financing is in
place till December 20, 2027. In addition, all
vessels are on term contracts securing cash
flow going forward.
Other risks
Eidesvik is exposed to other risks, such as
market and operational risks, including
cyber security risk. In addition, the Company
experience increase in both expenses and
lead time from suppliers, primarily as a
consequence of the current global increase
in inflation.
Please see Note 3 for further information.
FRAMEWORK CONDITIONS
Access to and development of highly
qualified personnel are vital to ensuring
good operation and delivery of an optimum
service, helping our customers to a better
overall result. In order to ensure that
Norwegian maritime competence is also
developed and utilised in the future, the
industry is dependent on stable and
predictable framework conditions. The
availability of training positions is vital to
building up expertise over time, even in a
cyclical industry.
Eidesvik currently employs both Norwegian
and international crew on board its vessels.
There is a strong need for personnel with
maritime competence.
Legislation on net pay schemes is a positive
move on the part of the political authorities.
However, Eidesvik believes that net pay
schemes should be further reinforced.
Historically, the Company has been at the
forefront of increasing the recruitment of
Norwegian seafarers. Considerable
resources have been allocated to this work
through initiatives to increase the incentives
for young people to choose a maritime
education. The Company cooperates in
various forums to strengthen and enhance
Norwegian maritime competence. At the
same time, the industry is experiencing
increasing international competition, not
least when it comes to expertise and costs.
It is important for further investment in
Norwegian maritime competence in the
future that the framework conditions should
be organised in such a way as to make it
attractive for the industry to build up
Norwegian maritime competence over time.
CORPORATE SOCIAL
RESPONSIBILITY
The Company’s core values and ethical
policy are set out in “Ethical guidelines and
core values for Eidesvik Offshore ASA”, and
its social responsibility policy is covered by
the “Human rights policy” and
“Environmental policy”. These state that the
work of achieving the business goals must
be carried out to high ethical standard and
in a manner calculated to safeguard the
environment and society. This means that
we should act with respect and honesty
towards customers, suppliers, employees,
authorities, owners and society, and that the
Company and the individual should comply
with relevant legislation. The policy states
that the Company and the individual
employee should refrain from all forms of
corruption, and sets out how the Company’s
employees should act if they are offered
gifts or other benefits because of their
employment.
It is further stated that the Company and all
employees must comply with all recognized
rules for human rights, including refraining
from all forms of discrimination.
No breaches of the Company’s ethical
policies were recorded in 2023.
BUSINESS SEGMENTS AND
OUTLOOK
Eidesvik owns and operates vessels in the
two segments of Supply and Subsea/Wind.
Supply
At year end 2023, Eidesvik operated 8 large
supply vessels. Out of the supply vessels, 5
run on LNG, and all 8 have batteries and
hybrid solutions installed.
27
Viking Lady continued on its contract for
Aker BP which runs till February 2026. The
vessel is scheduled for its 15- year class
renewal in Q2 2024.
Viking Prince continued on its contract with
Aker BP till December 2025.
Viking Avant was on charter to Equinor
entire 2023, and will continue to be on a firm
contract with Equinor till December 2025
with options for extensions. The vessel is
scheduled for its 20- year docking in Q4
2024.
Viking Queen traded in the spot market in in
Q1, 2023 and went for docking in February
2023. It is now on a long-term contract for
Wintershall Dea till October 2025 with
options for extensions.
Viking Energy worked for Equinor entire
2023, as it has done since the vessel was
delivered in 2003. The firm contract for the
vessel is to April 2025 with options for
extensions. The vessel had its 20- year
class renewal in Q2 2023.
Viking Princess worked for Wintershall Dea
entire 2023. Wintershall Dea has declared
options to extend the contract to January
2025, and has two further options for
extension.
Macro drivers for offshore service suppliers
are strong. The market continued to improve
in all the company’s operating segments
during 2023. Operators increased activity
levels and tighter vessel supply ensured
favorable market conditions for vessel
owners. At the end of the year all the
company’s vessels are on long-term
contracts.
For 2024 it is expected that the market rates
for supply vessels will continue to improve
due to high activity levels globally, limited
vessel supply and lack of new capacity
entering the market.
Subsea/Wind
Eidesvik currently has four vessels in the
Subsea/Wind segment, of which one is
owned in a JV with Subsea 7 (50/50) and
one was acquired in March 2023 in an entity
formed with Reach Subsea (controlled and
50.1% owned by Eidesvik).
Viking Wind Power continued on its contract
with Siemens Gamesa all year.
Subsea Viking entered into a 5-year contract
for Van Oord in the offshore wind segment
in March 2023. The vessel had its 25- year
class renewal docking in Q1 2024.
Seven Viking is on contract for Subsea 7 to
November 2025 with a 1-year option
thereafter. The vessel had it its 10- year
class renewal in Q1, 2023
Viking Reach is on a 6-year contract with
Reach Subsea. The vessel is scheduled for
its 15- year class renewal in Q3 2024.
There were visible improvements in the
subsea segment throughout 2023, a trend
we expect to continue in 2024 and beyond.
The utilization levels for the global subsea
fleet are high combined with a very strong
subsea project pipeline ahead and limited
new vessel capacity in the market. We
foresee a very favorable market for subsea
vessel tonnage in a long-term perspective.
The offshore wind segment experienced
some slowdown during the year due to lack
of sufficient returns in the supply chain.
Certain signs of recovery were still visible
with 2023 experiencing a record high FID
(Final investment decision) level and
committed vessel years increasing year on
year. We foresee a positive market
development in this segment in a medium to
long-term perspective, driven by the
steadfast political dedication to increase
production of clean energy.
28
BØMLO, 23 APRIL 2024
Arne Austreid
Lars Eidesvik
Lauritz Eidesvik
John Stangeland
Chair of the Board
Board member
Board member
Board member
Bjørg Marit Eknes
Annicken Kildahl
Kristine E. Skeie
Petter Lønning
Board member
Board member
Board member
Board member
Gitte Gard Talmo
CEO
29
Declaration by the Board of Directors
and CEO
The Board and the CEO have today reviewed and approved the annual report and the
consolidated annual accounts and notes for Eidesvik Offshore ASA as at 31 December 2023,
and for the year 2023, including consolidated comparative figures as at 31 December 2022, and
for the year 2022.
The annual accounts are submitted in accordance with the requirements of IFRS as adopted by
the EU and additional Norwegian requirements in the Securities Trading Act.
The Board and CEO believe that the annual accounts for 2023 have been prepared in
accordance with applicable accounting standards, and that the information in the accounts gives
a true picture of the Group’s assets, liabilities, financial position and overall performance as at
31 December 2023, and 31 December 2022. To the best of the Board’s and CEO’s knowledge,
the director’s report gives a true view of important events during the accounting period and their
influence on the annual accounts. To the best of the Board’s and CEO’s knowledge, the
description of the most important risk and uncertainty factors the business is facing in the next
accounting period, as well as the description of significant transactions with related parties,
gives a true account.
BØMLO, 23 APRIL 2024
Arne Austreid
Lars Eidesvik
Lauritz Eidesvik
John Stangeland
Chair of the Board
Board member
Board member
Board member
Bjørg Marit Eknes
Annicken Kildahl
Kristine E. Skeie
Petter Lønning
Board member
Board member
Board member
Board member
Gitte Gard Talmo
CEO
30
CONSOLIDATED STATEMENT OF PROFIT AND LOSS
(NOK 1,000)
2023
2022
Note
1.1-31.12
1.1-31.12
Freight revenue
4
Gain/loss on sale
4
Other income
5
Total operating income
4
Payroll expenses
11
Other operating expenses
6
Total operating expenses
Operating profit before depreciation and impairment
Depreciation
12,21
Impairment/ reversal of impairment of tangible fixed assets
12
-409 062
-209 237
Operating result before result from Joint ventures and
associated companies
Result from Joint ventures and associated companies
7
-4 410
-9 120
Operating profit
Financial income
8
Financial expenses
8
-75 326
-93 845
Changes in market value, derivatives
8
Net currency gain/loss
8
-116 357
Net financial items
-44 025
-144 639
Profit/loss before taxes
Tax costs
9
-49
Profit/loss for the year
Attributable to:
The parent company’s shareholders
Non-controlling interests
7
Profit/loss for the year
Earnings per share
10
Diluted earnings per share
10
31
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(NOK 1,000)
2023
2022
Note
1.1-31.12
1.1-31.12
Statement of comprehensive income
Profit/loss for the year
Items that will not be reclassified via profit/loss in later
periods
Actuarial gains/losses
18
-962
Total comprehensive income for the year
Attributable to:
The parent company’s shareholders
Non-controlling interests
Total comprehensive income for the year
32
CONSOLIDATED STATEMENT OF BALANCE SHEET
(NOK 1,000)
Note
31.12.2023
31.12.2022
Assets
Non-current assets
Vessels
12
Buildings, land and other operating assets
12
Financial derivatives
22
Right-of-use asset
21
Investments in joint ventures
7
Investments in associates
7
Pension funds
18
Other non-current receivables
13
Total non-current assets
Current assets
Accounts receivable
14
Derivatives
22
Other current assets
15
Cash and cash equivalents
16
Total current assets
Assets held for sale
4, 7, 12
Total assets
33
CONSOLIDATED STATEMENT OF BALANCE SHEET
(NOK 1,000)
Note
31.12.2023
31.12.2022
EQUITY AND LIABILITIES
Equity
Equity attributable to the Company’s shareholders:
Share capital
17
Share premium
Other reserves
-1 339
-377
Other equity
Total equity majority shareholders
Non-controlling interests
Total equity
Liabilities
Non-current liabilities
Interest-bearing debt
20
Lease liabilities
21
Pension liabilities
18
Total non-current liabilities
Current liabilities
Interest-bearing debt
20
Lease liabilities
21
Accounts payable
Tax payable
9
Other current liabilities
19
Total current liabilities
Liabilities related to Assets held for sale
20
Total liabilities
Total equity and liabilities
BØMLO, 23 APRIL 2024
Arne Austreid
Lars Eidesvik
Lauritz Eidesvik
John Stangeland
Chair of the Board
Board member
Board member
Board member
Bjørg Marit Eknes
Annicken Kildahl
Kristine E. Skeie
Petter Lønning
Board member
Board member
Board member
Board member
Gitte Gard Talmo
CEO
34
CONSOLIDATED STATEMENT OF CASH FLOW
(NOK 1,000)
Note
2023
2022
1.1-31.12
1.1-31.12
Cash flow from operations
Payments from customers
Payment to suppliers, employees and others
-442 676
-473 198
Payments from reimbursement scheme, Norwegian seamen
Interest received
Net paid and refunded taxes
-135
Net cash flow from operating activities
Cash flow from investment activities
Sales of tangible fixed assets
12
Received long-term receivables
13
Sales of other investments
12
Purchase of tangible fixed assets
12
-388 615
-103 410
Net cash flow from investment activities
-172 621
Cash flow from financing activities
Received net funds from private placement
17
Equity contribution related to establishment of Eidesvik
Reach AS
7
Installment financial lease
21
-7 844
-4 890
New debt
20
Unwound interest derivatives
22
Repayment of debt
20
-1 931 973
-965 921
Paid interest
20
-65 876
-91 009
Paid dividend to minority interests
7
-64 330
Net cash flow from financing activities
-236 793
-1 061 820
Currency gain/loss on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
-156 828
Cash and cash equivalents at start of period
16
Cash and cash equivalents at end of period
16
35
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(NOK 1,000)
Share
capital
Share
premium
Other
reserves
Other
equity
Total
Minority
share
Total
equity
Equity at 01.01.2022
Result for the year
Actuarial effects
Total comprehensive
income
Equity at 31.12.2022
-377
Result for the year
Actuarial effects
-962
-962
-962
Total comprehensive
income
-962
Private placement*
Change in non-controlling
interests **
Other adjustments
-102
-102
-102
Equity at 31.12.2023
-1 339
* In March, the Company announced a successful private placement of 10,833,333 new shares. The transaction
and registration of the shares was completed in April 2023.
** Updated minority share related to the new entity established with Reach Subsea ASA, paid dividend from
Eidesvik Neptun AS, and purchase of 7.77% of the minority shares in Eidesvik Neptun AS. Eidesvik Neptun AS
was closed in November 2023.
36
NOTES TO THE CONSOLIDATED ACCOUNTS
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
Annual accounts – Parent Company
STATEMENT OF PROFIT AND LOSS – PARENT COMPANY
(NOK 1,000)
Note
1.1.-31.12.
2023
1.1.-31.12.
2022
Payroll etc.
1,2
9,710
8,878
Other operating expenses
3
9,247
8,663
Total operating expenses
18,957
17,542
Operating profit
-18,957
-17,542
Interest income from companies in the same group
4,5
39,635
20,452
Other interest income
3,292
660
Other financial income
5
69,353
10,390
Impairment/reversal of impairment of financial assets
6
139,377
-576
Interest expenses to companies in the same group
4
-9,076
-3,698
Other financial expenses
-477,4
-26
Net financial items
242,103
27,202
Profit/loss before taxes
223,146
9,660
Tax costs
7
-18,179
0
Profit/loss for the year
204,967
9,660
Allocation (coverage) of profit/loss for the year
Proposed dividend
8
18,246
0
Transferred to/from other equity
186,721
9,660
Total allocated (covered)
204,967
9,660
72
STATEMENT OF BALANCE SHEET – PARENT COMPANY
(NOK 1,000)
Note
31.12.2023
31.12.2022
Assets
Tangible fixed assets
Buildings and land
8,921
8,921
Operating equipment
156
156
Total tangible fixed assets
9
9,077
9,077
Financial assets
Investments in subsidiaries
6
314,777
297,654
Loans to Group companies
4
668,370
70,778
Other financial assets
6
71
56
Pension funds
2
0
417
Total financial assets
983,217
368,905
Total non-current assets
992,294
377,982
Current assets
Receivables
Accounts receivable
274
347
Total receivables
347
347
Bank deposits, cash etc.
10
28,495
436,953
Total current assets
28,769
437,300
TOTAL ASSETS
1,021,063
815,282
73
STATEMENT OF BALANCE SHEET – PARENT COMPANY
(NOK 1,000)
Note
31.12.2023
31.12.2022
EQUITY AND LIABILITIES
Paid-in equity
Share capital
8,11
3,649
3,108
Share premium
8
301,054
177,275
Other paid-in equity
8
549
549
Total paid-in equity
305,252
180,932
Retained earnings
Other equity
486,281
299,560
Total retained earnings
486,281
299,560
Total equity
8
791,533
480,491
LIABILITIES
Other non-current liabilities
Liabilities to Group companies
4
193,451
332,383
Pension liabilities
2
189
0
Total other non-current liabilities
193,640
332,383
Current liabilities
Accounts payable
666
791
Public duties payable
391
412
Liabilities to Group companies
4
1
0
Dividend
8
18,246
0
Other current liabilities
12
16,586
1,206
Total current liabilities
35,890
2,408
Total liabilities
229,530
334,791
TOTAL EQUITY AND LIABILITIES
1,021,063
815,282
BØMLO, 23 APRIL 2024
Arne Austreid
Lars Eidesvik
Lauritz Eidesvik
John Stangeland
Chair of the Board
Board member
Board member
Board member
Bjørg Marit Eknes
Annicken Kildahl
Kristine E. Skeie
Petter Lønning
Board member
Board member
Board member
Board member
Gitte Gard Talmo
CEO
74
STATEMENT OF CASH FLOWS – PARENT COMPANY
(NOK 1,000)
1.1-31.12
1.1-31.12
Note
2023
2022
Cash flow from operations
Payments to suppliers and employees
1,2,4
-18,462
-18,240
Interest received/paid
14,897
3,484
Net cash flows from operations
-3,565
-14,756
Cash flow from investment activities
Sale of tangible fixed assets
132
132
Received investment fund
12
17,963
0
Purchase of shares
-904
0
Net cash flow from investment activities
17,059
132
Cash flow from financing activities
Received net funds from private placement
11
124,321
0
Unwound interest derivatives
5
45,676
0
Dividend received from subsidiary
6
190,563
0
Changes in intercompany balances
4
-785,597
313,371
Net cash flow from financing activities
-425,036
313,371
Net effect of translation differences regarding currency in
cash and cash equivalents
3,084
0
Net increase (decrease) in cash and cash equivalents
9
-408,458
298,747
Cash and cash equivalents at start of period
9
436,953
138,206
Cash and cash equivalents at end of period
28,495
436,953
75
NOTES TO THE ANNUAL ACCOUNTS – PARENT COMPANY
Accounting principles
The financial statements have been prepared in accordance with the Norwegian Accounting Act of 1998 and
generally accepted accounting principles.
Classification and valuation of balance sheet items
Current assets and short-term liabilities include items maturing within one year after the balance sheet date.
Other items are classified as fixed assets/long-term liabilities.
Current assets are valuated at the lower of acquisition cost and fair value. Short-term liabilities are capitalised
at nominal value at the time of establishment.
Non-current assets are valued at acquisition cost, but depreciated to fair value if the impairment in value is not
expected to be transient. Long-term liabilities are capitalised at nominal value at the time of establishment.
Accounts receivable
Accounts receivable and other receivables are listed in the balance sheet at fair value after deduction of
provisions for expected loss. Provisions for loss are made on the basis of individual assessments of individual
receivables. An unspecified provision is also made for other accounts receivable in order to cover presumed
loss.
Currency
Monetary items in foreign currency are valued according to the exchange rate at the end of the accounting
year.
Investments in subsidiaries/associated companies
Subsidiaries and associated companies are valued according to the cost method in the company accounts. The
investment is valued at acquisition cost for the shares, unless write-downs have been necessary. Group
contributions to subsidiaries, with taxes deducted, are listed as increased cost for shares. Dividends/group
contributions are recorded in the same year as the provision is made in the subsidiary/associated company.
When a dividend/group contribution substantially exceeds the share of retained profits after the acquisition, the
excess amount is treated as a repayment of invested capital, and is deducted from the value of the investment
in the balance sheet.
For loans to subsidiaries, refer to Note 5.
Tangible fixed assets
Tangible fixed assets are capitalised and depreciated over the useful life of the asset. Maintenance of fixed
assets is expensed on an ongoing basis under operating costs, while upgrades or improvements are added to
the cost of the asset and depreciated in step with the asset. The distinction between maintenance and upgrades
is calculated in relation to the condition of the asset when it was acquired.
Tax
The tax costs in the income statement include both tax payable for the period and the change in deferred taxes.
Deferred tax assets are calculated at 22% on the basis of the temporary differences that exist between
accounting and tax values, and losses carried forward for tax purposes at the end of the accounting year.
Temporary differences that increase and decrease taxes and that reverse or may reverse during the same
period are offset and netted off.
Pension liabilities
The Company finances its pension liabilities to the employees through a group pension scheme. Accounting is
done in line with the NRS 6 accounting standard for pension costs. Pension liabilities are calculated as the
present value of future pension benefits considered to be incurred on the balance sheet date, based on the fact
that employees acquire their pension rights evenly throughout their working lives. Pension funds are valued at
fair value and are netted against the pension liabilities for each pension scheme. Net pension funds are
presented as long-term receivables under financial assets. The net pension cost for the period is included in
payroll and social security costs, and consists of the pension entitlements for the period, interest costs on the
76
calculated pension liabilities, expected returns on the pension funds, recorded effects of changes in estimates
and pension plans, recorded effects of discrepancies between actual and expected returns, and accrued payroll
tax. The effects of changes in pension plans are expensed in the period in which they occur.
Cash flow statement
The cash flow statement has been prepared according to the direct method. Cash and cash equivalents include
cash, bank deposits, and other short-term liquid placements which can be converted to known cash amounts
immediately and without significant risk of bankruptcy and which mature in less than three months from the
date of acquisition.
NOTE 1 - PAYROLL COSTS, NUMBER OF EMPLOYEES, REMUNERATION,
LOANS TO EMPLOYEES
The Company had 1 employee at the end of the year. The Company has established an occupational pension
scheme.
In accordance to the company renumeration policy, a bonus scheme is established for CEO and senior
executives. Bonus scheme is based on company targets (75%) and individual targets (25%). Maximum bonus
is 35% of annual salary. The Board of Directors may temporarily deviate from any part of the guidelines if
deemed necessary to protect the long term interest and financial capacity of the Company or safeguard the
viability of the company.
The CEO has a mutual notice period of 6 months and is entitled to 6 months of severance pay on certain terms
per 31 December 2023.
Former CEO, Jan Fredrik Meling, retired from his position on 31 December 2021. Gitte Gard Talmo replaced
Meling effective from January 1, 2022. Meling has received 60% of his salary in 2023 and 2022. His pension
costs has been covered by Eidesvik Offshore ASA in 2023 and 2022.
Payroll costs 2023 2022
Salaries 2 639 2 678
P
ayroll tax 1 263 1 081
Pension costs 2 393 1 852
Board remuneration 2 608 2 477
Other remuneration 806 790
Total 9 710 8 878
Remuneration to the CEO: 2023 2022
Salary 2 331 2 128
Pension costs 120 147
Other remuneration 1 027 1 085
Total 3 478 3 360
77
Board remuneration is decided by the General Meeting. Disbursements for 2023 are remuneration for the
previous year, 2022. 2023 remuneration will be decided on the next Annual General Meeting.
Arne Austreid, Bjørg Marit Eknes and Tore Hettervik were, respectively, elected as chair of the board, board
member and employee representative for the board in 2021. Johnny Olson were, respectively, elected as
employee representative for the board in 2022.
From AGM 2019, the employees have had one employee representative in the Board, and one deputy employee
representative. The total remuneration for these two representatives are equal to a original Board Member, and
the split is originally 70/30 between the two employee representatives, depending on the number of meetings
the deputy employee representative has attended. The employee representatives rotate on a yearly basis, from
July to July.
* At the Annual General Meeting in 2022, Kristine Klaveness replaced Ellen Hatteland in the Nomination
Committee.
** This compensation is included in the table for remuneration of the board.
Remuneration is decided by the General Meeting. Disbursements for 2023 are remuneration for the previous
year, 2022.
NOTE 2 - PENSION COSTS AND LIABILITIES
The Company’s pension schemes meet the requirements of the Mandatory Occupational Pensions Act.
The Company has pension schemes which cover its only employee.
Remuneration to the Board: 2023 2022
Arne Austreid 555
319
Borgny Eidesvik 300
303
Lars Eidesvik 255
243
John Egil Stangeland 255
243
Lauritz Eidesvik 285
263
Kristine Elisabeth Skeie 255
243
Bjørg Marit Eknes
318
177
Johnny Olson
138
46
Tore Hettervik
74
112
Petter Lønning
38
0
Kolbein Rege
0
248
Synne Syrrist
0
126
Børre Lindanger
0
85
2 473 2 407
The Board Remuneration Annual Change
2,67 %
Other members of the Nomination Committee 2023 2022
Per Åge Hauge 45 30
E
llen Hatteland* 13 20
Kjetil Eidesvik 30 20
Kristine Klaveness* 18 0
Lauritz Eidesvik** 0 20
Kolbein Rege** 30 20
Auditor 2023 2022
Expenses to auditor are distributed as follows:
S
tatutory audit 829 790
Tax advice 0 48
Other certification services 192 160
Total expenses to the auditor excl. VAT 1 020 998
78
Defined benefit pension
This pension scheme was replaced by a defined contribution scheme for all employees, except for former CEO.
The estimated payment into the defined benefit scheme in 2024 is NOK 0 thousand.
Capitalised liability is determined as follows:
The following economic and actuarial assumptions form the basis of the calculation:
NOTE 3 - OTHER OPERATING EXPENSES
Of which, from related parties:
Management and accounting services, MNOK 6.9 (MNOK 6.5) provided by the subsidiary Eidesvik AS.
The offices are leased from Langevåg Senter AS, a wholly-owned subsidiary of Eidesvik Invest AS, the
Company’s largest shareholder. The lease on the office runs to 2033, with 6 x 5-years options thereafter. The
gross lease cost is MNOK 7.2 (MNOK 6.8).
The offices are subleased, 23% to companies related to the principal shareholder, and 69% to the subsidiary
Eidesvik AS. 8% of the premises are used by the lessor itself. The item “Office lease” represents this share.
The lease is presented as a net lease.
2023 2022
Estimated liability 4 767 3 899
V
alue of pension funds -4 579 -4 317
Under/over-funded 189 -417
Reconciliation of this year’s pension cost
2023 2022
Present value of this year’s pension contribution 219 214
I
nterest expense on the pension liability 7 4
Expected return on pension funds -17 -10
Administrative costs 38 36
Net changes in plans, scaling down, settlement and payroll tax 32 31
Net pension cost 279 275
2023 2022
Discount rate 3,10 % 3,00 %
Rate of compensation increase 3,
50 % 3,50 %
Increase of social security base amount (G) 3,25 %
3,25 %
Rate of pension increase 1,80 % 1,50 %
Payroll tax rate 14,
10 % 14,10 %
2023 2022
Management and accounting 6 949 6 500
I
nvestor relations costs 1 025 612
Financial advice 0 66
Statutory audit 979 843
Consultant/legal advice 474 317
Office lease 574 542
Margin reinvoice office lease -1 495 -1 120
Other reinvoices -93 -415
Other expenses 834 1 318
Total other operating expenses 9 247 8 664
79
NOTE 4 - LONG-TERM RECEIVABLES AND LIABILITIES TO SUBSIDIARIES
The interest on the intercompany balances is calculated quarterly using 3-month NIBOR + 3% margin.
*Provision for loss per 31 December 2023 of MNOK 1.6 is related to Eidesvik Management AS.
NOTE 5 – LONG-TERM LIABILITIES
Financial risk
The Company has provided guarantees for all ship mortgage debt in the consolidated subsidiaries. The
guarantees involve substantial risk. The Company has no currency risk. For more details, see the discussion
of financial risk management in Note 3 to the consolidated accounts.
The Company unwound two interest cap derivatives in 2023 for a total of MNOK 45.7 (Other financial income).
NOTE 6 - INVESTMENTS IN SUBSIDIARIES AND OTHER FINANCIAL ASSETS
2023:
Reversed impairments in 2023 of MNOK 139.4 was related to the closing of Eidesvik Neptun AS in November
2023.
In 2023, Eidesvik Offshore Holding AS was established to own the shares in Eidesvik Shipping AS, Eidesvik
AS, Eidesvik Shipping International AS, Eidesvik Subsea Vessels AS, Eidesvik Management AS, Norsk
Rederihelsetjeneste AS, Eidesvik Maritime AS, Eidesvik Shipping II AS and Eidesvik UK Ltd.
Long-term receivables 2023 2022
Eidesvik AS 0 0
Eidesvik Shipping AS 0 0
Eidesvik Management AS 3 665 3 415
Eidesvik Supply AS 47 329 43 531
Eidesvik Shipping International AS 6 900 6 900
Eidesvik Shipping II AS 0 18 552
Eidesvik MPSV AS 598 0
Eidesvik Maritime AS 0 0
Eidesvik Shipping Investments AS 131 620 0
Eidesvik Offshore Holding AS 479 878 0
Provision for loss* -1 620 -1 620
Total long-term receivables (*) 668 370 70 778
Long-term liabilities 2023 2022
Eidesvik AS 52 718 51 288
E
idesvik Shipping AS 78 008 77 079
Eidesvik Shipping II AS 62 725 0
Eidesvik Neptun AS 0 203 594
Eidesvik MPSV AS 0 422
Total long-term liabilities 193 451 332 383
Short-term liabilities 2023 2022
Norsk Rederihelsetjeneste AS 1 0
Total short-term liabilities 1 0
Company Share capital
Owner share /
voting share
Number Nominal
Book value
Equity at
31.12.2023 (*)
Profit 2023 (*)
Eidesvik Offshore Holding AS 300 100 % 3 000 100 314 125 245 085 -4 587
Eidesvik Shipping Investments AS 30 100 % 3 000 10 24 -5 875 -5 899
Hordaland Maritime Miljøs. AS 4483 91 % 39 933 100 332 291 -73
Eidesvik Neptun II AS 88 74,75 % 747 474 0,10 295 3 053 2 965
Total 314 777 220 552 -11 363
80
2022:
Impairments in 2022 were related to impairments in Hordaland Maritime Miljøselskap AS (TNOK 231), Eidesvik
Shipping International (TNOK 104), Eidesvik Management (TNOK 0,94) and Norsk Rederihelsetjeneste AS
(TNOK 218).
NOTE 7 - TAXES
Tax effect of temporary differences and loss carry-forwards which have given rise to deferred tax and deferred
tax assets, broken down by categories of temporary differences:
No deferred tax assets have been posted.
Other financial assets
Company Share capital
Owner share /
voting share
Number Nominal
Book value
Equity at
31.12.2023 (*)
Profit 2023 (*)
Eidesvik Ghana Ltd. 49 % 15
Eidesvik Seven Chartering AS 100 50 % 5 000 10 56
22 388 -10 493
Total 71
2023 2022
Recognised tax on ordinary profit: 18 179 0
Tax expense on ordinary profit 18 179 0
Taxable income:
Ordinary profit before tax 223 146 9 660
Permanent differences -142 294 611
Changes in temporary differences 7 557 -5 648
Group contributions made -82 632 0
Use of loss carry-forward -5 777 -4 623
Taxable Income 0 0
Tax payable in the balance sheet:
Tax payable on profit for the year 18 179 0
Tax payable on group contributions made -18 179 0
Total tax payable in the balance sheet 0 0
2023 2022 Change
Tangible fixed assets -96 -120 -24
Receivables -1 620 -1 620 0
Non-current liabilities in foreign exchange 0 6 975 6 975
Pension funds/liabilities -189 417 606
Total -1 904 5 652 7 557
Accumulated loss carry-forward 0 -5 777 -5 777
Basis for calculating deferred tax -1 904 -125 1 779
Deferred tax assets (22%) -419 -28 391
Effect of change of tax rate 0 0 0
81
NOTE 8 - EQUITY
* In March, the Company announced a successful private placement of 10,833,333 new shares. The transaction
and registration of the shares was completed in April 2023.
At the annual general meeting on 30 May 2024, the Board of Directors will propose that shareholders approve
a cash dividend of NOK 0.25 per share, equating to approximately MNOK 18.2. The EIOF share will trade ex
dividend on 31 May 2024.
NOTE 9 - SUMMARY OF TANGIBLE FIXED ASSETS
NOTE 10 – BANK DEPOSITS
Of the MNOK 28.5 (MNOK 437.0) in bank deposits, restricted tax funds represent MNOK 0.3 (MNOK 0.3).
NOTE 11 - SHARE CAPITAL AND SHAREHOLDER INFORMATION
The Company’s share capital consists of 72,983,333 shares at NOK 0.05 each. All shares have equal voting
rights.
For the 20 largest shareholders in Eidesvik Offshore ASA as at 31 December 2023, see Note 17 to the
consolidated accounts.
(1) Eidesvik Invest AS is 55%-controlled by Bømmelfjord AS, where Borgny Eidesvik holds 20% of the shares
(A-shares), and Lauritz Eidesvik holds 20% of the shares (B-shares). The remaining 45% of Eidesvik Invest AS
is owned by EVIK AS, where Lars Eidesvik indirectly holds 20% of the shares.
NOTE 12 – OTHER CURRENT LIABILITIES
The Company, on behalf of the Group received investment funds in 2023.
Other paid-in Other
Share capital Share premium equity equity Total
Equity 31.12.22 3 108 177 275 549 299 560 480 491
Private placement * 542 123 779 124 321
Profit/loss for the year 186 721 186 721
Equity 31.12.23 3 649 301 054 549 486 281 791 533
Residential
property
Non-
depreciable
a
ssets
Total
Acquisition cost 1 January 8 921
156 9 077
Acquisition cost 31 December 8 921 156 9 077
Accumulated depreciation 1 January 0 0 0
Depreciation in the year 0 0 0
Accumulated depreciation 31 December 0 0 0
Booked value 31 December 8 921 156 9 077
2023 2022
Eidesvik Invest AS (1) 43 684 833 37 200 000
Kristine Elisabeth Skeie 191 666 25 000
John Egil Stangeland 30 000 30 000
Bjørg Marit Eknes 25 000 25 000
Gitte Gard Talmo 7 690 500
Helga Cotgrove 5 800 0
Lauritz Eidesvik 200 200
82
APPENDIX 1 – ALTERNATIVE PERFORMANCE MEASURES DEFINITIONS
The Group’s financial information is prepared in accordance with international financial reporting standards
(IFRS). In addition, the Group discloses alternative performance measures as a supplement to the financial
statement prepared in accordance with IFRS. Such performance measures are used to provide better insight
into the operating performance, financing and future prospects of the Group and are frequently used by
securities analysts, investors and other interested parties.
The definitions of these measures are as follows:
• Contract coverage: Number of future sold days compared with total actual available days (incl.
vessels in layup), excluding options.
• Backlog: Sum of undiscounted revenue related to secured contracts in the future.
• Utilisation: Actual days with revenue divided by total actual available days.
• Equity Ratio: Equity divided by total assets.
• Net interest bearing debt (“NIBD”): Interest bearing debt less cash and cash equivalents. The use
of term “net debt” does not necessarily mean cash included in the calculation is available to settle
debt if included in the term. Reference is made to Note 12.
• EBITDA: Operating result (earnings) before depreciation, impairment, amortization, result from
join ventures and associated companies, net financial costs and taxes is a key financial parameter.
The term is useful for assessing the profitability of operations, as it is based on variable costs and
excludes depreciation, impairment and amortized costs related to investments. EBITDA is also
important in evaluating performance relative to competitors. See table below for matching to the
accounts.
• Adjusted EBITDA: EBITDA adjusted for Gain/loss on sale and Other income.
• EBITDA margin: EBITDA divided on Total operating revenue.
• Working capital: Current assets less short-term liabilities.
• Minimum market value clause: Booked value of an asset shall not be lower than a given ratio
compared to outstanding debt on the same asset.
2023 2022
Total operating income
772 359 918 547
Total operating expenses
-438 791 -424 335
EBITDA
333 567 494 213
Ordinary depreciation -160 984 -142 907
Impairment on assets 409 062 209 237
Result from Joint ventures and associated companies -4 410 -9 120
E
BIT
577 236 551 423
83
84
85
86
87
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