SeaBird Exploration Plc
Annual Report
2024
©G. King
Annual Report 2024 2
Table of content
Financial highlights for the Group
3
Letter from the Chairman
4
Group Management
5
Board of Directors
6
Environmental, social and corporate governance
7
Transparency Act
18
Management Report
25
Consolidated Financial Accounts
30
Separate Financial Accounts: Seabird Exploration Plc
75
Independent Auditors’ Report
93
Declaration of the Members of the Board of Directors
100
Annual Report 2024 3
Financial highlights for the Group
Year ended 31 December
All figures in USD 000's except equity ratio
2024
Revenues
35,454
Cost of sales
-16,956
SG&A
-4,263
EBITDA*
13,212
EBIT*
7,080
Profit/(loss) for the period
6,192
Capital expenditures
2,336
Total debt
13,458
Net interest-bearing debt*
9,398
Equity ratio*
59%
Note* see Note 32 in Consolidated Financial Accounts for definitions.
Annual Report 2024 4
Letter from the Chairman
Dear Shareholders and Stakeholders,
As we close 2024, I am proud to share that the relentless
commitment and hard work at SeaBird has enabled us to secure
a landmark transaction within the year 2025 with Energy Drilling
Pte Ltd to form SED Energy Holdings Plc.
Repositioning for a Stronger Future
Our journey these past few years has been one of rigorous
restructuring and disciplined execution. By repositioning the
company, building excellence into our operations and
streamlining our processes, we have built a robust financial
platform characterized by strong cash generation and low
debt. The combination with Energy Drilling elevates our financial
metrics to unprecedented heights, driving marked
improvements in revenue, EBITDA, and free cash flow metrics,
and positioning us for sustainable, long-term shareholder value
creation. From the outset, Energy Holdings provides visibility for
strong shareholder returns:
• Firm Revenue Backlog: Over USD 500 million
• Firm EBITDA Backlog: In excess of USD 320 million
• Free Cash Flow from Backlog: Exceeding USD 270
million
Strategic Rationale
The merger with Energy Drilling is driven by a clear strategic
rationale aimed at creating a leading dividend company on
OSE. This integration is not just about combining operations; it is
about forging a more resilient, diversified, and financially robust
entity with substantial benefits for our shareholders. Key
elements of this rationale include:
• Aligned Shareholder Interests: By uniting our
complementary strengths with those of Energy Drilling,
the merger harmonizes the interests of both
shareholder groups, creating a unified platform for
long-term value creation.
• Increased Scale and Market Presence: The combined
entity will be significantly larger, enhancing our
attractiveness to investors and improving our
positioning in the capital markets. A larger scale
supports improved pricing and better access to
capital, as well as more favorable debt financing
terms.
• Elimination of “Single-Asset” Risk: The merger diversifies
our revenue streams and operational focus, mitigating
the risks associated with a reliance on a single asset or
market segment. This derisking provides a more
balanced and resilient business model.
• Enhanced Consolidation of Niche Markets: Continued
consolidation of our respective niche market positions
allows us to capture a high market share in small,
attractive oil service segments. With a very strong,
multi-year order book, this unified approach offers
greater operational stability and growth potential.
• Disciplined Capital Allocation and Dividend Focus:
With an emphasis on targeting free cash flow to equity
and maintaining strict capital discipline, the merger
enables us to transform our financial metrics. The robust
platform created by this transaction is designed to
generate predictable cash flows and support
sustained, quarterly shareholder distributions of all
excess cash.
Together, these strategic pillars propel our financial metrics to a
new level and establish a solid foundation for sustainable long-
term growth and enhanced shareholder value.
Looking Forward
I extend my sincere gratitude to our dedicated employees,
board members, business partners, and you, our valued
shareholders. Your trust and continued support have been
essential in driving Seabird’s transformation. As we embark on
this new chapter with Energy Holdings, we remain steadfast in
our commitment to operational discipline, robust financial
management, and delivering sustainable returns to our
shareholders.
Together, we are well-positioned to build a leading offshore oil
services platform that addresses past challenges and sets new
standards of performance and stability.
Sincerely,
_______________________________________
Ståle Rodahl
Executive Chairman
SeaBird Exploration
Annual Report 2024 5
Group Management
Finn Atle Hamre – Chief Executive Officer.
Position held from 2021.
Mr. Hamre has held the position
as Chief Operating Officer of the
company since June 2018,
before taking over as CEO in
2021. Mr. Hamre has more than
25 years of experience in the
Offshore Oil and Gas industry
across both European and Asian
markets. He has more than 15
years of experience in senior
executive management
positions including VP, MD, CCO and CFO. He holds a B.Eng.
(Hons) in Naval Architecture, and a Master of Business
Administration.
Sveinung Alvestad – Chief Financial Officer.
Position held from 2022.
Mr. Alvestad has joined the
company as Director M&A in
May 2021 and appointed CFO in
August 2022. He has worked in
investment banking for about 10
years, with a special focus on
research on renewables and
energy markets and companies.
He holds a MSc in Industrial
Economics and Technology
Management from the
Norwegian University of Science and Technology (NTNU) in
Trondheim. His engineering specialization is within electrical
energy while the economics specialization is in investment,
finance and financial management.
Annual Report 2024 6
Board of Directors
Ståle Rodahl – Executive Chairman of the board
Ståle Rodahl has served 30
years in the financial industry,
amongst others as a hedge
fund manager and in various
executive positions in the
Investment Banking industry in
New York, London and Oslo
and in companies such as
Alfred Berg, ABN Amro and ABG
Sundal Collier. He has also
served on the Board of Directors
in companies in other industries. Mr. Rodahl holds a MSc with a
major in Finance from the Norwegian Business School, BI with
additional programs from London School of Economics (LSE)
and NASD, New York.
Øivind Dahl-Stamnes – Director
Øivind Dahl-Stamnes has
worked 36 years in the
petroleum industry in Norway
and internationally. He has held
executive/management
positions in Equinor and
Esso/Exxon for more than 15
years within exploration and
production operations. Recent
assignments in Equinor include
Vice President positions for the
Troll field, the North Area Initiative and Partner Operated
Licenses. He has also served as chairman and member of
numerous Production License Management Committees for
Equinor and Esso. Mr. Dahl-Stamnes holds a master’s degree in
geology from NTNU in Trondheim.
Sverre Strandenes – Director
Sverre Strandenes has worked
more than 35 years in the oil and
gas industry,and has extensive
experience from the seismic
industry. He obtained an MSc
degree in geophysics from the
University in Bergen in 1981.
Following that, he held various
positions in Norsk Hydro E&P
division within the Research
Center and the Exploration
Department. In 1995 he joined PGS where he has held several
senior/executive management positions, most recently as
Executive Vice President Sales & Services.
Hans Christian Anderson – Director
Hans Christian Anderson works
as a portfolio manager for one
of the company’s largest
shareholders, Anderson Invest
AS. He founded his first
company when he was 18
years old and has a broad,
international background as an
investor in multiple industries. Mr.
Anderson also serves on the
board of directors of other
companies.
Odd Sondre Svalastog Helsing – Director
Mr. Helsing currently holds the
position as investment manager
at MH Capital AS, the
Company’s largest shareholder.
Mr Helsing has worked more
than 11 years in finance and
prior to joining MH Capital AS
held the position as Co-Head of
Equity and Sales at Clarksons
Platou Securities. Mr. Helsing
holds a bachelor’s in economics
and business administration from Norwegian School of
Economics (NHH). He is a Norwegian citizen and resides in
Norway.
Annual Report 2024 Environmental, Social, and Corporate Governance 7
Environmental, social, and corporate governance
1. Key figures 2024 .......................................................................................................................................................................................... 8
2. Strategy and commitment ........................................................................................................................................................................ 9
3. Environmental ........................................................................................................................................................................................... 11
4. Social ......................................................................................................................................................................................................... 13
5. Governance.............................................................................................................................................................................................. 15
6. Disclaimer and assumption for the ESG reporting .................................................................................................................................. 17
Annual Report 2024 Environmental, Social, and Corporate Governance 8
1. Key figures 2024
Unit
2024
2023
Disclosure
Reference
Environmental
Scope 1 GHG
Emissions
mtCO2-e
26 877
21 031
ESRS E1-6-48a
GRI 305-1a
SDG 13
AASB S2 29-a-i-1
Scope 2 GHG
Emissions
mtCO2-e
1.14
ESRS E1-6-49a
GRI 305-2a
SDG 13
AASB S2 29-a-i-2
Scope 3 GHG
Emissions
Scope 3 GHG
Emissions
mtCO2-e
950 525
29.98
ESRS E1-6-51
GRI 305-3a
SDG 13
AASB S2 29-a-i-3
AASB S2 29-a-vi-1
GRI 305-3a
Business Travel - Air
Travel (Scope 3)
mtCO2-e
950 492
-
Business Travel -
Hotel Nights (Scope
3)
mtCO2-e
4.51
-
Waste generated
in operations
(Scope 3)
mtCO2-e
27.88
29,99
Employee
Commuting (Scope
3)
mtCO2-e
0.01
-
Other emissions to
air
Emissions to air -
NOx
kgNOx
468 039
366 240
ESRS E2-4-28a
GRI 305-7i
SDG 13
SASB TR-MT-120a.1
GRI 305-7 vi
GRI 305-7ii
Emissions to air -
PM2.5
kgPM25
6 850
360
Emissions to air –
Sox
kgSOx
11 307
8 848
Biodiversity and
Marine Protected
Areas
Number
0
0
ESRS E4-SBM-3-16ai
GRI 304-1a-vi
SASB TR-MT-160a.1
SDG 14
UNEP WCMC
Spills to
environment
m³
0
0
SASB TR-MT-160a.3
GRI 306-3 (2016)
(Sector std 11.5.4)
SDG 14
Social
Training
hr
38,5
9,58
ESRS S1-13-83
GRI 404-1a
Work Related
Injuries
Fatalities – Number
Number
0
0
ESRS S1-14-88b
GRI 403-9-a-i
GRI 403-9-a-ii
SASB TR-MT-320a.1.
ESRS S1-14-88c
GRI 403-9-a-iii
High
Consequences
Injuries - Number
Number
0
0
Lost Time Incident
Rate
Number
0
0
Recordable Work
Related Injuries -
Number
Number
1
0
Marine incidents
Marine Casualties
Number
0
0
SASB TR-MT-540a.1
SDG 8
Marine Casualties -
Very Serious
Number
0
0
Port State Control
Number
0
0
SASB TR-MT-540a.3
SDG 8, 1
Governance
Whistleblowing
Number
0
0
GRI 2-26
GRI 2-16
Annual Report 2024 Environmental, Social, and Corporate Governance 9
2. Strategy and commitment
About this ESG report
This report covers the period 1/1/2024 - 31/12/2024, thereby
aligning with our financial reporting period.
Since 2020 reporting is conducted on an annual basis. In
previous years, we have aligned with UN Sustainable
Development Goals and in reference with GRI standards. This
year, we have opted to take our ESG efforts a step further by
reporting in accordance with GRI standards while continuing
our alignment with previous standards. This enables us to create
an interconnected and diverse framework. We are also aware
of upcoming regulations and, whilst these may not directly
impact us, we remain focused on aligning with the highest
industry standards.
Policies and commitments
Our commitment to the highest standards of transparency and
responsibility is unwavering in all our activities. In essence, our
governance practices are rooted in honesty, integrity, and
professionalism.
SeaBird Exploration has implemented a range of policies related
to safety, quality, environmental issues, health, drug and alcohol
use, cyber security, social media, and anti-bribery and
corruption. These policies align with our Code of Conduct. We
provide regular training and establish procedures to ensure we
meet both regulatory and market expectations.
The company strictly prohibits the use of alternative routes or
channels to offer or receive improper advantages from agents,
contractors, suppliers, employees of these entities, or
government officials.
Embedding policy commitments
The responsibility of embedding the policy commitments of
SeaBird Exploration span throughout the entire organization,
from the CEO to all other employees. Each individual is
expected to actively and positively contribute to achieving
efficient and effective operations. All staff members should be
well-acquainted with and implement the Company’s Policies
and objectives.
These policies are displayed prominently on board the
managed vessels and at the Company’s premises and are
reviewed as needed to ensure they remain relevant. All
Company activities, both onshore and onboard, should align
with our Policies and objectives.
Our policies
• Code of Conduct: The Code is based on the
Company’s beliefs and values establishing its
commitment to honesty, integrity, professionalism, and
impartiality. The aim of the Code is to ensure that we
are all united by strong and clear values and the
highest standards of behaviour. The Company does
not tolerate the engagement in, or concealment of,
any humiliating/intimidating or other behaviour which
may be interpreted as harassment, abuse/bullying,
racism or discrimination.
• Health, safety and environment: The Company is
committed to provide safe practices in ship operation
and a safe working environment for ensuring
prevention of human injury or loss of life, welfare of
employees and avoidance of any adverse impact on
property and its goal is to achieve ZERO accidents
through continuous improvement. Safety
management objectives also include assessing all
identified risks to its ships, personnel and the
environment and establishing appropriate safeguards;
as well as continuously improving safety management
skills of personnel ashore and aboard. The Company is
committed to improve environmental performance in
all areas of vessels’ operation. We are committed to
controlling emissions and waste to below harmful
levels, eliminating spills and environmental incidents,
and identifying and mitigating key environmental risks.
Our long-term goals are to achieve ZERO incidents and
ZERO spills at sea through continuous improvement. In
order to achieve these goals, we review and assess
each of the areas of our operations, measure progress
and compliance with this policy, evaluate practices
from industry leaders in order to continually revise and
improve our environmental management system, we
provide adequate funds and human resources in order
to effectively maintain and repair the systems,
equipment and components in the machinery spaces.
The Company always ensures that all employees
execute their work under healthy conditions and its
goal is to achieve the highest standards of health
through continuous improvement.
• Quality: The Company is committed to providing
quality services which consistently and continuously
meet the requirements of its customers. By adopting a
proactive approach concerning the needs of our
clients and by being responsive to their requests,
suggestions or complaints, we are always trying to
improve the value of our services. The criteria for the
quality of our services are established by monitoring,
measuring and analysing our objectives and targets,
by reviewing our objectives and targets for continual
suitability, and by verifying that those processes are
effectively implemented.
• Drug and alcohol policy: SeaBird Exploration actively
promotes a substance‐abuse-free environment. The
company strategy is zero tolerance towards drug or
alcohol abuse. Purchasing, possession or consumption
of alcoholic substances, illicit drugs, non‐prescription
medication with the potential to impair performance,
is banned aboard SeaBird operated vessels. Reporting
for work, being at work or returning home from work
when under the influence of alcohol or drugs can
affect performance and safety and is strictly
prohibited.
Annual Report 2024 Environmental, Social, and Corporate Governance 10
• Social media policy: This policy aims at assisting our
seafarers in making responsible decisions about the
way they use social media. It prohibits postings that
might have discriminatory remarks, harassment and
threats of violence. It also gives guidelines for a more
prudent use of the internet and their postings.
• Anti-harassment policy: SeaBird Exploration believes
that providing a positive and harmonious workplace
motivates the workforce and optimises effective work
practices. A key requirement to achieve this is to be an
"equal opportunity employer” committed to providing
a work environment that is free from harassment and
discrimination. Harassment or discrimination based
upon an individual's sex, race, ethnicity, national origin,
age, religion or any other legally protected
characteristic will not be tolerated. The Chief
Executive Officer (CEO) oversees SeaBird Exploration's
operations, with Technical Managers handling
incidents on the front line. Regular training ensures that
the team is equipped to carry out their duties in a
vigilant and safe manner. Continuous monitoring and
reporting allow for management follow-up, and
significant cases are reported to the Board of Directors.
In alignment with the Norwegian Corporate Governance Code,
SeaBird Exploration's commitment to sustainability is evident in its
consideration of the United Nations' Sustainable Development
Goals (SDGs). The company believes in contributing positively to
the broader global agenda and collaborates with industry,
customers, suppliers, investors, and regulators to make a
meaningful contribution towards achieving the SDGs.
Stakeholder engagement
Stakeholder engagement is a crucial component of the
sustainable development strategy for companies like Seabird
Exploration. As a global provider of marine seismic data
acquisition, Seabird Exploration operates across diverse regions,
requiring collaboration with various stakeholders, including
governments, NGOs, local communities, employees, and
customers.
To support sustainable development, the company employs
multiple stakeholder engagement strategies. One key
approach is maintaining ongoing dialogue with local
communities, governmental bodies, and NGOs. Collaboration
with these groups is essential for regulatory compliance,
identifying and mitigating environmental and social risks, and
promoting responsible practices.
Seabird Exploration also prioritises employee engagement
through various initiatives, ensuring they are well-informed about
the company's sustainability policies and practices. This includes
training on environmental and social issues, encouraging
employees to voice concerns, and recognising their
contributions to sustainability efforts.
Beyond its internal and regulatory stakeholders, Seabird
Exploration actively involves its customers in the process. Close
collaboration with customers enables the company to
understand their needs, identify opportunities for improvement,
and advocate for responsible practices within the energy
sector.
Ultimately, Seabird Exploration's commitment to stakeholder
engagement helps identify and address environmental and
social risks, promote responsible operations, and build trust and
support among its stakeholders. These efforts not only enhance
the company’s reputation as a socially and environmentally
responsible organisation but also help attract and retain
customers, employees, and investors who prioritise sustainability.
Materiality assessment
This section discusses several key issues and standards relevant
to SeaBird Exploration's operations. It emphasizes the
importance of internal governance documents, international
standards, and references, particularly in relation to climate
change, environmental policy, and air emissions. Key
frameworks mentioned include the Paris Agreement, the IPCC,
and the Initial IMO Strategy on Reduction of GHG Emissions from
Ships, as well as the IMO MARPOL Convention Annex VI and the
EU Sulphur Directive 2016/802.
Material issue
Internal
governance
documents
International
standards and
references
Climate change
Environmental
policy (HSE policy)
SeaBird
Exploration KPIs
The Paris
Agreement
The
Intergovernmental
Panel on Climate
Change (IPCC)
Initial IMO
Strategy on
Reduction of GHG
Emissions from
Ships
Air emissions
Environmental
policy (HSE policy)
SeaBird
Exploration KPIs
IMO MARPOL
Convention Annex
VI
EU Sulphur
Directive 2016/802
Ecological
impact
Environmental
policy (HSE policy)
SeaBird
Exploration KPIs
UN Global
Compact
IMO MARPOL
Convention Annex
VI
IMO Ballast Water
Management
Convention
Hong Kong
Convention
Anti-corruption
Company’s Code
of Conduct
SeaBird
Exploration KPIs
UN Global
Compact
The US Foreign
Corrupt Practices
Act and the UK
Bribery Act
Employee health
and safety
Company’s Code
of Conduct HSE
policy SeaBird
Exploration KPIs
UN Global
Compact ILO
Conventions
Maritime Labour
Convention, 2006
International
Annual Report 2024 Environmental, Social, and Corporate Governance 11
Management
Code for the Safe
Operation of Ships
and for Pollution
Prevention (ISM
Code) Hong Kong
Convention
Marine Crew
Resource
Management
Accident and
safety
management
Safety
management
system
International
Management
Code for the Safe
Operation of Ships
and for Pollution
Prevention (ISM
Code) Marine
Crew Resource
Management
Material topics
We wish to be transparent regarding the impacts that our
operations and activities have and may have.
By establishing the topics that are most material to us, we
commit to managing these in accordance with international
standards and regulations so as to eliminate or minimize the risks
that are associated with these.
Environment
• Emissions
• Energy
Social
• Occupational health and safety
• Training and education
• Employment
• Non-discrimination
Governance
• Compliance with international regulations and industry
standards
• Supplier assessments
• Anti-corruption
3. Environmental
GHG emission management
At an operational level, SeaBird Exploration has been running a
SEEMP (Ship Energy Efficiency Management Plan) for many
years. This plan monitors and improves the energy efficiency of
its vessels with the aim of reducing their greenhouse gas
emissions. It applies to all vessels in the fleet and provides
procedures and practices for best energy management under
various operational modes. The plan undergoes an annual
review regarding its effectiveness, with corrective actions and
improvements implemented if targets are not met. Additionally,
the company has tested new data information processing
platforms on some other vessels to achieve higher energy
efficiency levels.
Since its establishment, SeaBird Exploration has conducted
quarterly Management Review Meeting to evaluate the
implementation and effectiveness of the IMS, as well as the
modifications already made. The meeting also examines the
necessity for further adjustments and enhancements to the IMS,
policies, objectives, and targets.
Furthermore, it promotes environmental and energy efficiency
awareness through training and communication methods for
both shore and sea-going personnel.
Finally, supplementary to the IMO regulations and customary
ship management company accreditations, SeaBird Exploration
has voluntarily adopted the ISO 9001 on Quality Management,
ISO 14001 on Environmental Management, and ISO 45001 on
Health and Safety. Accreditation for these standards have been
obtained from DNV.
Scope 1 GHG emissions
Late 2023, we applied antifouling paints to one of our vessels
and we plan to repeat this to the other vessel that undergoes
dry docking next year. We calculated that their use creates up
to 5% emission cut.
Having ballast water treatment systems (BWTS) which
significantly contribute towards minimizing our ecological
impact and effectively treating all organisms contained in
ballast water.
BWTS are designed to remove organisms, such as zooplankton
and algae, from ballast water using methods such as filtration
and electrolysis.
It is difficult to set a target for 2025, as consumption is based on
the projects and depends on the volume of the source, shooting
speed and shotpoint interval.
2023
2024
Target
2025
Unit
Scope 1
GHG
emissions
21 031
26 877
-
mtCO
₂
-e
Reference Standards ESRS E1-6-48a | GRI 305-1a | SDG 13 |
AASB S2 29-a-i-1
Scope 2 GHG emissions
In 2024 we made the commitment as a company to start
calculating our Scope 2 emissions. SeaBird Exploration has two
sites, an office building in Bergen, and a warehouse at Ågotnes.
Measures have been taken to install low consumption LED
lighting both indoor and outdoor and movement detection LED
lighting in certain areas and ventilation with heat exchange for
enhanced indoor air quality and energy efficiency.
2023
2024
Target
2025
Unit
Scope 2
GHG
emissions
-
1.14
-
mtCO
₂
-e
Reference Standards ESRS E1-6-49a | GRI 305-2a | SDG 13 |
AASB S2 29-a-i-2
Annual Report 2024 Environmental, Social, and Corporate Governance 12
Scope 3 GHG emissions
The year 2024 marked a significant milestone for SeaBird
Exploration, as we committed to calculating our Scope 2 and
Scope 3 emissions going forward. We have measured waste
generated by our fleet since 2020, but this year is reported as
Scope 3 emissions.
Additionally, 2024 was the inaugural year for calculating
emissions generated by employee commuting and air travel.
2023
2024
Target
2025
Unit
Scope 3
GHG
emissions
29.98
950 525
-
mtCO
₂
-e
Reference Standards ESRS E1-6-51 | GRI 305-3a | SDG 13 |
AASB S2 29-a-i-3
Business
Travel - Air
Travel
(Scope 3)
-
950 492
mtCO
₂
-e
Business
Travel -
Hotel Nights
(Scope 3)
-
4.51
mtCO
₂
-e
ESRS E1-6-51 | GRI 305-3a | SDG 13 | AASB S2 29-a-vi-1 | GRI
305-3a
Waste
generated
in
operations
(Scope 3)
29.99
27.88
mtCO
₂
-e
ESRS E1-6-51 | GRI 305-3a | SDG 13 | AASB S2 29-a-vi-1
Employee
Commuting
(Scope 3)
-
0.01
mtCO
₂
-e
Reference Standards ESRS E1-6-51 | GRI 305-3a | SDG 13 |
AASB S2 29-a-vi-1
Activity metrics
Activity
metrics
Unit of
measure
Data 2023
Data 2024
Number of
shipboard
employees
Number
198
192
Total
distance
travelled by
vessels
Nautical
miles (nm)
50 181
59 718
Operating
days
Days
365
366
Number of
vessels in
total
shipping
fleet
Number
2
2
Port calls
Number
28
28
PSC deficits
Number
0
0
PSC
detentions
Number
0
0
Air pollution
2023
2024
Target
2025
Unit
Emissions
to air –
NOx
366 240
468 039
-
kgNO
ₓ
Emissions
to air -
PM2.5
5 360
6 850
-
kgPM25
Emissions
to air –
SOx
8 848
11 307
-
kgSO
ₓ
Reference Standards ESRS E2-4-28a | GRI 305-7i | SDG 13 |
SASB TR-MT-120a.1 | GRI 305-7 vi | GRI 305-7ii
Biodiversity and marine protected areas
2023
2024
Target
2025
Unit
Shipping
duration
in Marine
Protected
Areas
0
0
-
Number
Reference Standards ESRS E4-SBM-3-16ai | GRI 304-1a-vi |
SASB TR-MT-160a.1 | SDG 14 | UNEP WCMC
Spills to environment
2023
2024
Target
2025
Unit
Spills and
releases to
the
environment
0
0
-
m³
Reference Standards SASB TR-MT-160a.3 | GRI 306-3 (2016)
(Sector std 11.5.4) | SDG 14
Waste management
At SeaBird Exploration we handle waste according to all existing
rules and regulations while always following MARPOL Annex V.
The total waste generated through our operations is 644.71 m³
and our goal is to continue our efforts on waste reduction. In our
dedication to minimizing waste and promoting good
stewardship while educating our seafarers, we implemented a
plan to eliminate plastic from our vessels.
Waste generated
2024
2023
A - Plastics
154.4
137.3
B - Food waste
40.1
44.01
C - Domestic
waste
327.58
291.28
D - Cooking oil
0.35
0.46
E - Incinerator
ashes
6.2
3.3
F - Operational
waste
107.28
176.73
Annual Report 2024 Environmental, Social, and Corporate Governance 13
I - Electronic
waste
8.8
8.38
Climate risk reporting
The maritime industry has demonstrated that without substantial
measures to reduce risks, there is a high likelihood of risk-related
injuries and incidents. To address this, SeaBird Exploration has
implemented suitable processes and procedures to identify,
mitigate, and assess both climate and operational risks when
they arise. The responsibility for identifying and managing these
risks falls to the Board, which is kept informed by Senior
Management.
Ship recycling
All our ships maintain a IHM certificate which proves compliance
with IMO’s Hong Kong Convention for the Safe and
Environmentally Sound Recycling of Ships (2009). Disclosure
Reference: Hong Kong Convention | EU Ship Recycling
Regulation (EU 1257/2013) | Forskrift 2018-12-06-1813 and Basel
Conv. | SDG 8, 12, 14
4. Social
Training
At SeaBird Exploration, we recognize that our employees are our
most valuable asset. Our commitment to Human Capital
Development is a fundamental aspect of our Environmental,
Social and Governance (ESG) Strategy.
Our comprehensive approach to shore and seagoing
employee training encompasses a wide range of topics, from
soft skills to technical expertise, maintaining workforce
engagement and training levels at optimal level.
Our training and development plan is implemented through our
training matrices which are developed and regularly reviewed
for their effectiveness and adequacy. Our training programs are
designed to cover leadership, teamwork, emotional intelligence
and communication skills as well as technical skills, industry-
specific training requirements, health, safety, quality and
environment. In alignment with this, we facilitate ongoing career
development and upskilling through our e-learning platform,
performance appraisals and the identification of strengths and
areas for improvement.
We are dedicated to creating an inclusive, safe, and
empowering work environment that encourages personal and
professional growth, ensures well-being and supports our
business goals and objectives. Investment in our people ensures
high levels of motivation, retention and loyalty, increases
productivity and reinforces our commitment to long-term
sustainability and success.
Together, we build a future where our employees, our
community and our company thrive.
2023
2024
Unit
Average
training hour
9.58
38.5
hr
per
employee
Reference Standards ESRS S1-13-83 | GRI 404-1a
Health and safety
In the demanding field of offshore operations, where safety and
security risks are ever-present, SeaBird Exploration upholds the
highest standards of risk management to protect its crew,
vessels, cargo, and the environment. At the core of its
operational philosophy is a firm commitment to a zero-accident
policy, ensuring that every aspect of its activities aligns with the
International Safety Management (ISM) Code.
Recognizing safety and security as fundamental pillars of its
operations, SeaBird Exploration prioritizes them at every level.
The zero-accident policy serves as the foundation of the
company’s risk management framework, reinforced by robust
safety systems and stringent operational procedures. Crew
members undergo extensive training programs designed to
equip them with the necessary skills to identify, assess, and
mitigate potential hazards, fostering a proactive safety culture
across the fleet.
Strict adherence to the ISM Code is integral to the company’s
safety strategy, providing a comprehensive framework for
ensuring compliance with international safety and security
standards in the maritime industry. To maintain these high
standards, regular audits and inspections are conducted, with
immediate corrective actions taken whenever necessary to
uphold operational integrity.
Beyond its own fleet, SeaBird Exploration embraces its broader
responsibility within the maritime industry, actively engaging with
regulatory bodies, industry groups, and other key stakeholders
to drive continuous improvement in safety practices. By
championing industry best practices and collaborating on
safety initiatives, the company contributes to elevating security
standards across the sector.
Commitment to safety and continuous improvement
At SeaBird Exploration, the safety and well-being of both
onshore and offshore personnel remain paramount. The
company’s unwavering commitment to health and safety is not
just a regulatory obligation but a cornerstone of its long-term
success. Understanding the inherent risks in offshore operations,
SeaBird Exploration has implemented a comprehensive risk
assessment framework, ensuring that all potential threats to
crew members, vessels, and cargo are systematically identified
and mitigated.
To foster a culture of accountability and transparency, crew
members are encouraged to report all accidents, incidents,
and near-miss events, with full managerial support to ensure
thorough investigation and resolution. By leveraging the Oil
Companies International Marine Forum (OCIMF) guidelines on
Lost Time Incidents (LTI) and Total Recordable Cases and
Frequency, the company conducts fleet-wide incident
analyses, identifying root causes to enhance future safety
measures.
Annual Report 2024 Environmental, Social, and Corporate Governance 14
2024 safety performance
In 2024, SeaBird Exploration recorded only four first-aid cases, all
attributed to situational awareness issues. More significantly, the
company achieved zero Lost Time Incidents (LTI) and one
recordable injury (restricted work case), a testament to its
rigorous safety protocols and proactive risk management.
As part of its ongoing commitment to continuous improvement,
SeaBird Exploration remains dedicated to refining its safety
measures, ensuring that all employees operate in a secure and
well-managed environment. Through steadfast adherence to
best practices and proactive engagement with industry
stakeholders, the company continues to set the standard for
excellence in offshore safety and security.
2023
2024
Target
2025
Unit
Fatalities -
Number
0
0
0
Number
High
Consequences
Injuries -
Number
0
0
0
Number
Lost Time
Incident Rate
0
0
0
Number
Recordable
Work Related
Injuries –
Number
0
1
0
Number
Reference Standards ESRS S1-14-88b | GRI 403-9-a-i | GRI
403-9-a-ii | SASB TR-MT-320a.1. | ESRS S1-14-88c | GRI 403-9-
a-iii
Marine incidents
2023
2024
Target
2025
Unit
Marine
Casualties
0
0
0
Number
Marine
Casualties -
Very
Serious
0
0
0
Number
Reference Standards SASB TR-MT-540a.1 | SDG 8
Port state control
2023
2024
Target
2025
Unit
PSC (Port
State
Control ) -
Deficiencies
0
0
0
Number
Reference Standards SASB TR-MT-540a.3 | SDG 8, 1
Gender diversity and equality
Employees by position and age group 2024
Position
level
Age
< 30
Age
< 30
%
Age
30-50
Age
30-50
%
Age
50 >
Age
50 >
%
Level 1
3
4.69
31
48.44
30
46.88
Level 2
1
2.22
19
42.22
25
55.56
Level 3
1
1.79
30
53.57
25
44.64
Level 4
0
0
8
66.67
4
33.33
Level 5
0
0
7
46.67
8
53.33
Level 6
0
0
0
0
0
0
Reference Standards ESRS S1-9-66b | GRI 405-1b-ii
Human and labour rights
At SeaBird Exploration, we uphold a steadfast commitment to
human rights, ensuring that our operations align with universally
accepted international standards. Guided by the UN Guiding
Principles on Business and Human Rights (UNGP), we recognize
that our operational legitimacy is directly tied to our respect for
fundamental human rights. This commitment extends across all
levels of our business, including our workers, clients, customers,
society, governments, and other stakeholders, in accordance
with targets 8.7 and 8.8 of the UN Sustainable Development
Goals.
Integration of human rights into business practices
Understanding that the protection and promotion of human
rights are integral to responsible and sustainable business
conduct, we embed these principles into every aspect of our
operations. Our adherence to the UNGP framework ensures that
we actively integrate human rights considerations into:
• Hiring and training practices, fostering a fair and
inclusive workplace
• Supply chain management, ensuring ethical sourcing
and responsible procurement
• Community engagement, maintaining positive
relationships with the societies in which we operate
Recognizing that upholding human rights requires continuous
effort, we regularly review and refine our policies and
procedures to align with evolving international standards and
best practices. Through collaboration with diverse stakeholders,
we strive to maximize the effectiveness and impact of our
human rights initiatives.
Compliance with international conventions and industry
standards
At SeaBird Exploration, we take tangible steps to ensure
compliance with key international regulations safeguarding
workers' rights. We adhere to the Maritime Labour Convention
(MLC 2006), ensuring that all our vessels meet its stringent labor
standards. Each vessel in our fleet holds a certificate affirming
compliance, guaranteeing fair working conditions for our crew
members.
Additionally, we have established a special agreement with the
International Transport Workers' Federation (ITF) to regulate and
uphold fair and ethical seafarer working conditions. We
Annual Report 2024 Environmental, Social, and Corporate Governance 15
recognize that a safe and healthy work environment is a
fundamental right, and we are fully committed to safeguarding
the well-being of our employees.
Proactive risk management and stakeholder collaboration
To uphold human rights and prevent potential violations, we
maintain robust monitoring systems designed to identify,
prevent, and mitigate risks across our operations. Our teams
vigilantly oversee all activities to ensure that no part of our
business engages in practices that could compromise human
rights.
We also foster close collaboration with key stakeholders,
including local communities, regulatory authorities, and industry
organizations, to proactively address concerns and drive
meaningful improvements in human rights practices. By
maintaining open communication and engagement, we
reinforce our dedication to transparency and accountability.
A commitment to continuous improvement
SeaBird Exploration remains resolute in its commitment to human
rights, ensuring that our policies and operational frameworks
evolve in line with the highest international standards. We firmly
believe that respecting human rights is not just a corporate
responsibility but a moral imperative, essential for the long-term
sustainability and integrity of our business.
5. Governance
This section provides a comprehensive overview of SeaBird
Exploration's corporate governance framework, detailing the
company's board composition, risk management strategies,
and internal control mechanisms. It highlights the structures and
policies in place to ensure transparency, accountability, and
ethical business conduct across all levels of the organization.
Additionally, SeaBird Exploration outlines its commitment to
ethical business practices, including the guidelines and
principles that govern decision-making, regulatory compliance,
and stakeholder engagement. Through a strong corporate
governance framework, the company ensures that its
operations align with industry best practices and international
standards, fostering long-term sustainability and corporate
integrity.
Our company remains steadfast in its commitment to upholding
human rights and advocating for universal labor standards. We
actively promote responsible conduct among our employees
by ensuring that our values, policies, and procedures are fully
aligned with the principles outlined in Sustainable Development
Goals (SDG) target 16.1.
As part of our dedication to ethical business practices, we strictly
prohibit corruption across all levels of our organization,
reinforcing our commitment to SDG target 16.2. We uphold the
highest standards of integrity and compliance, ensuring that all
business operations are conducted transparently and ethically.
To further support a culture of accountability, we strongly
encourage our employees to speak up and report any
concerns regarding unethical practices. By fostering open
communication and transparency, we create a workplace
where honesty, integrity, and ethical responsibility are deeply
embedded in our corporate culture.
Ethical business conduct
SeaBird Exploration maintains the highest standards of ethics
and integrity throughout its business operations. This
commitment is clearly articulated in the company's Code of
Conduct, which adheres to the most stringent regulations and
industry recommendations, including the OSEBX.
Recognising that robust governance and risk management
structures are integral to achieving commercial success and
generating long-term value for stakeholders such as employees,
owners, and society, SeaBird Exploration prioritises transparency,
reliability, and accountability in its reporting and
communications.
To ensure that employees are well-prepared with the necessary
training and reporting channels, the company has established
robust policies and procedures for incident reporting and follow-
up. SeaBird Exploration is fully dedicated to operating safely and
in compliance with local laws and regulations, communicating
the implications of relevant legislation to employees through
comprehensive training programs.
The company remains steadfast in its dedication to promoting
effective, accountable, and inclusive institutions at all levels of
the organisation, recognising their pivotal role in building a
sustainable future.
Code of Conduct
SeaBird Exploration's unwavering commitment to transparency,
accountability, and ethical conduct permeates every facet of
its operations. The company ensures compliance with all laws
and regulations in the jurisdictions where it operates, even in
areas with underdeveloped frameworks for human rights and
corruption. Employees are held to high standards of integrity
and honesty, irrespective of any personal or organisational
conflicts of interest. Notably, SeaBird Exploration's activities align
with the goals of Sustainable Development Goal 8, emphasising
the promotion of decent work and economic growth.
In order to guarantee that all individuals associated with SeaBird
uphold these elevated standards of behaviour and business
practices, the company has formulated a comprehensive
Code of Conduct. This document delineates the company's
principles and expectations on crucial matters such as human
and labour rights, health and safety, business ethics, and legal
compliance. The Code of Conduct is readily accessible on the
company's website, integrated into the Safety Management
System, and included in the orientation for new employees.
Furthermore, it serves as a standard addendum in every
significant contract that SeaBird Exploration enters into with third
parties.
Whistleblowing
SeaBird Exploration places a high value on fostering a culture of
transparency and effective communication, recognising their
Annual Report 2024 Environmental, Social, and Corporate Governance 16
pivotal role in achieving organisational objectives. In line with
this commitment, the company has formulated a
Whistleblowing Policy designed to offer support to all employees
and contractors willing to report any concerns related to the
company's activities. This includes actions or incidents that may
violate the law, the company's Code of Conduct, or other
policies.
To promote a conducive environment for reporting, SeaBird
Exploration has instituted secure channels for reporting incidents
and whistleblowing. The company actively encourages
employees to feel comfortable bringing forth any concerns.
Colleagues can confidentially report critical issues by sending
an email to wh[email protected]m.
SeaBird Exploration wants to assure its employees and
contractors that the company and its representatives are
committed to non-retaliation against anyone who reports a
concern through this channel. It's noteworthy that, as of now,
there have been no reports made through this whistleblowing
channel.
Anti-bribery and corruption
SeaBird Exploration firmly opposes corruption and bribery within
the shipping industry, recognising the detrimental impact these
practices can have on social and economic development.
They pose risks to the safety of shipping crews, increase legal
and reputational liabilities, and contribute to elevated costs. To
address these concerns, SeaBird Exploration has established a
zero-tolerance policy against bribery and corruption at all
stages of its operations, as outlined in its Code of Conduct.
In actively managing corruption risks, the company closely
monitors operations in high-risk countries and refrains from
making port calls in any of the nations ranked in the bottom 20
of Transparency International's Corruption Perception Index for
the year 2024. Moreover, SeaBird Exploration ensures that no
facilitation payments were made in 2024 and reports no
instances of non-monetary sanctions imposed on the company.
Demonstrating a commitment to transparency and anti-
corruption efforts, SeaBird Exploration employs various measures
to combat corruption. All personnel undergo mandatory anti-
corruption training to enhance awareness of corruption issues
and equip them with the skills to navigate potential bribery
challenges.
Supply chain management
SeaBird Exploration operates with the highest level of integrity
and expects all its business partners to adhere to similarly
stringent ethical standards. Before committing to any significant
undertakings or large-scale projects, we make sure to gather
sufficient information about potential collaborators to assess the
risk of corruption or human rights issues.
The extent of due diligence conducted on a specific business
associate is directly proportional to the degree of cooperation
involved. Consequently, we may undertake a comprehensive
due diligence investigation on potential partners, evaluating
any potential reputational concerns. Prior to each
engagement, we screen key suppliers, such as shipping agents
and commercial agents, and mandate their completion of a
thorough due diligence checklist.
In an effort to improve supplier compliance and streamline
management, we are currently in the process of implementing
new procedures for onboarding, supplier management, and
the tendering and selection of chase vessels. All vendors must
certify that they have read and comprehended SeaBird
Exploration's policies, including the Code of Conduct, to ensure
a collective commitment to ethical standards.
Supply chain environmental assessment
Through our environmental assessment, we have identified four
suppliers with a significant actual and potential negative
environmental impact. These suppliers are all responsible for
providing fuel and lubricants to our vessels, making them critical
to our operations but also key contributors to environmental risks.
Due to the essential nature of these supplies, switching to
alternative providers is not currently feasible. However, we are
committed to mitigating environmental impact through efforts
to optimize fuel efficiency and reduce overall consumption. By
implementing energy-saving measures, enhancing operational
efficiency, and exploring sustainable alternatives where
possible, we aim to minimize our environmental footprint while
maintaining operational reliability.
2024
2023
New supplier screened
100%
100%
Suppliers assessed for environmental impact
300
1
Suppliers with significant actual and
potential negative environmental impact
4
0
Suppliers where impacts have improved as
a result of assessment
0%
0%
Suppliers where relationship were
terminated
0%
0%
Reference Standards ESRS G1-2-15b | GRI 308-1a
Supply chain social assessment
As part of our social assessment process, we have identified ten
suppliers with significant actual or potential negative social
impacts. These suppliers have been evaluated based on key risk
factors, including labor rights, corruption risk, and overall
compliance with ethical business practices.
Ten suppliers were identified from list of countries defined by the
Global Right Index as having significant actual or potential
negative social impacts, primarily related to labor rights
violations and corruption risks. These include six suppliers in
Malaysia, one in the Philippines, and three in UAE, Türkiye, and
India (considered lower risk).
The majority of supplier spending is concentrated in a few key
countries, with Norway accounting for the largest share by a
significant margin. The United States and the United Kingdom
also represent major spending hubs, with substantial financial
allocations spread across multiple suppliers. Some countries,
such as Croatia, receive a high amount of spending despite
having only a single supplier, indicating high-value contracts.
Annual Report 2024 Environmental, Social, and Corporate Governance 17
In Asia, Malaysia and the Philippines stand out due to notable
supplier spending, which may be linked to fuel supply or labor-
related costs. Additionally, some countries with relatively few
suppliers still receive considerable financial allocations,
suggesting that these vendors provide essential goods or
services.
2024
2023
New supplier screened
100%
100%
Suppliers assessed for social impact
270
1
Suppliers with significant actual and
potential negative environmental impact
10
0
Suppliers where impacts have improved as
a result of assessment
0%
0%
Suppliers where relationship were
terminated
0%
0%
Reference Standards ESRS G1-2-15b | GRI 414-1a (Sector Std
11.10.8)
Corporate governance
Openness and confidence are crucial elements in effective
corporate governance, and SeaBird Exploration acknowledges
the significance of cultivating transparency and trust among
various stakeholders. These stakeholders encompass
shareholders, the board of directors, executive management,
employees, customers, suppliers, government agencies, and
the public.
6. Disclaimer and assumption for the
ESG reporting
The information provided relies on the most trustworthy data
accessible during the reporting period. Although ESG disclosures
offer a glimpse into the handling of sustainability risks, there are
instances where certain data may be approximated.
Annual Report 2024 Transparency Act 18
Transparency Act
1. Purpose of the report ................................................................................................................................................................................ 19
2. Overview of SeaBird Exploration.............................................................................................................................................................. 19
3. Compliance with the Norwegian Transparency Act ............................................................................................................................. 19
4. Compliance with the ISM code and safety management system ...................................................................................................... 20
5. Overview of governance documents .................................................................................................................................................... 20
6. Risk assessment process at the tender stage ......................................................................................................................................... 20
7. Key risk areas assessed ............................................................................................................................................................................. 21
8. Policies and measures to prevent negative impacts ............................................................................................................................ 22
9. Stakeholder engagement and grievance mechanisms ....................................................................................................................... 23
10. Methods for assessing the effectiveness of risk mitigation ................................................................................................................ 23
11. Management's assurance of report accuracy ................................................................................................................................. 24
Finn Atle Hamre
CEO, Seabird Exploration Plc
Director, Seabird Exploration Norway AS
Director, Geobird Management AS
Sveinung Alvestad
CFO, Seabird Exploration Plc
Director, Seabird Exploration Norway AS
Director, Geobird Management AS
Annual Report 2024 Transparency Act 19
1. Purpose of the report
The Norwegian Transparency Act aims to promote transparency
and accountability in business operations by requiring
companies to assess, prevent, and mitigate risks related to
human rights violations and environmental harm in their supply
chains. By mandating public reporting, the Act seeks to increase
awareness, encourage responsible business conduct, and
provide stakeholders—including investors, clients, and civil
society organizations—with the information necessary to make
informed decisions. Ultimately, the Act is designed to drive
sustainable business practices and protect fundamental rights.
This report serves as a comprehensive account of SeaBird
Exploration’s commitment to transparency and compliance
with the Transparency Act. Its key objectives are to:
• Provide stakeholders with insight into our operations,
governance, and risk management efforts.
• Demonstrate our due diligence in identifying and
addressing risks related to human rights and
environmental impact.
• Ensure compliance with regulatory requirements by
documenting our policies, strategies, and mitigation
measures.
• Enhance trust and accountability by publicly sharing
our commitment to ethical and sustainable business
practices.
2. Overview of SeaBird Exploration
SeaBird Exploration is a leading provider of high-quality marine
seismic services, specializing in acquiring and processing seismic
data for the oil and gas industry. With a strong operational
presence in various offshore regions, the company focuses on
delivering cost-effective and efficient seismic solutions tailored
to client needs.
Core business activities:
• Marine seismic acquisition: Conducting 2D, source,
and niche 3D seismic surveys to support offshore
exploration and development projects.
• Project management and operations: Managing the
end-to-end process of seismic surveys, from planning
and mobilisation to data delivery and analysis.
• Fleet management: Operating a specialised fleet of
seismic vessels equipped with advanced technology
to ensure high-quality data acquisition and
operational efficiency.
Commitment to safety and compliance
As a company managing ships, SeaBird Exploration adheres to
the International Safety Management (ISM) Code, ensuring
compliance with global maritime safety standards. The
company has implemented a structured safety management
system (SMS) to oversee risk management, environmental
impact, and operational governance.
ISO certifications
To ensure the highest standards of quality, safety, and
environmental responsibility, SeaBird Exploration is certified
under the following ISO standards:
• ISO 9001: Quality Management System – Ensuring
consistent service delivery and continuous
improvement.
• ISO 14001: Environmental Management System –
Managing environmental responsibilities to minimize
impact and enhance sustainability.
• ISO 45001: Occupational Health and Safety
Management System – Providing a safe and healthy
workplace for employees and contractors.
Sustainability and ethical business practices:
SeaBird Exploration is committed to conducting business with
integrity and in compliance with the Norwegian Transparency
Act. The company prioritizes:
• Human rights and labor standards: Ensuring fair labor
practices and preventing human rights violations
across its operations and supply chain.
• Environmental responsibility: Implementing measures
to minimize environmental impact, including
responsible waste management, emissions reduction,
and sustainable resource use.
• Stakeholder engagement: Collaborating with clients,
investors, employees, and local communities to
uphold corporate social responsibility (CSR) standards.
SeaBird Exploration continues to evolve its operational strategies
to align with regulatory requirements, industry best practices,
and stakeholder expectations, ensuring sustainable and ethical
business growth.
3. Compliance with the Norwegian
Transparency Act
SeaBird Exploration is fully committed to complying with the
Norwegian Transparency Act, which requires companies to
identify, assess, and mitigate risks related to human rights and
environmental impact in their operations and supply chains. To
ensure responsible business practices, we have established a
structured due diligence process that evaluates potential risks,
implements mitigation measures, and engages with suppliers to
uphold ethical standards.
Risk assessments are an integral part of our operations, allowing
us to identify potential human rights violations such as forced
labor, child labor, and discrimination, as well as environmental
risks related to emissions, waste management, and sustainable
Annual Report 2024 Transparency Act 20
resource use. These assessments help us align with both national
and international regulations governing corporate responsibility.
Transparency and accountability are central to our compliance
efforts. We publish an annual Transparency Report, providing
stakeholders with detailed disclosures on our policies, risk
assessments, and corrective actions. We also maintain open
communication with investors, clients, suppliers, and civil society
organizations to foster trust and engagement.
To address any concerns related to human rights or unethical
business practices, we have established secure grievance
mechanisms, including a whistleblower policy that ensures
confidentiality and fair handling of reports. Additionally, we
continuously refine our compliance processes through regular
audits, training programs, and enhancements to our internal
controls.
By embedding these principles into our business operations,
SeaBird Exploration remains committed to responsible and
transparent corporate conduct, in full alignment with the
requirements of the Norwegian Transparency Act.
4. Compliance with the ISM code and
safety management system
SeaBird Exploration operates in full compliance with the
International Safety Management (ISM) Code, which establishes
a global standard for the safe operation of ships and the
prevention of environmental pollution. As a maritime company,
we are required to implement and maintain a Safety
Management System (SMS) that ensures regulatory
compliance, risk mitigation, and continuous improvement in
safety and environmental performance.
Our SMS provides a structured approach to managing
operational risks, covering all aspects of vessel management,
emergency preparedness, environmental protection, and
workplace safety. It includes documented policies and
procedures designed to promote a strong safety culture across
all levels of our organization. Regular audits, both internal and
external, are conducted to verify compliance with the ISM
Code and ensure that our safety practices meet international
standards.
In addition to our ISM Code compliance, SeaBird Exploration
holds ISO certifications that further reinforce our commitment to
quality, environmental responsibility, and occupational health
and safety. These include:
• ISO 9001: Quality Management System, ensuring a
commitment to continuous improvement, customer
satisfaction, and operational excellence.
• ISO 14001: Environmental Management System,
demonstrating our dedication to sustainable
operations, pollution prevention, and compliance with
environmental regulations.
• ISO 45001: Occupational Health and Safety
Management System, ensuring a safe and healthy
work environment for our employees, both onshore
and offshore.
By integrating ISM Code compliance with ISO-certified
management systems, SeaBird Exploration maintains the highest
standards of safety, environmental responsibility, and
operational efficiency. These frameworks guide our decision-
making processes, help us mitigate risks, and ensure that our
business practices align with international best practices and
regulatory requirements.
5. Overview of governance
documents
SeaBird Exploration maintains a robust governance framework
that includes policies and procedures to ensure responsible
business conduct. Our governance documents include:
• Code of Conduct
• Mission Statement
• Policies on: Anti-harassment, Health, safety, and
environment (HSE), Quality, Right to refuse work,
Security, Smoking, Social media and internet use,
Substance abuse, Whistleblower protection, Working
alone
These policies are integrated into our safety management
system (SMS) and are continuously reviewed to align with
evolving regulatory requirements and industry best practices.
6. Risk assessment process at the
tender stage
Risk assessment and due diligence are integral to SeaBird
Exploration’s business operations, ensuring that potential risks are
proactively identified, evaluated, and mitigated. Our approach
is comprehensive and begins at the tender stage, where we
conduct thorough evaluations across multiple critical areas.
These assessments guide decision-making processes, safeguard
operational integrity, and uphold our commitments to
responsible business practices.
At the operational level, we assess risks related to general
business activities, client-specific requirements, and health,
safety, security, and environmental (HSSE) concerns. This
includes evaluating the working conditions onboard our vessels,
the safety of our employees, and the environmental impact of
our operations. Through continuous monitoring and
improvement, we ensure compliance with regulatory
frameworks and industry best practices.
As part of our Corporate Social Responsibility (CSR) efforts, we
analyze potential socio-political risks, including local content
requirements, political stability, and the presence of forced or
child labor risks. Additionally, we assess the availability of
medical evacuation (medevac) facilities in remote operational
areas, as well as local regulations governing CSR activities. By
integrating these considerations, we ensure that our operations
contribute positively to the communities where we operate
while preventing human rights violations.
Annual Report 2024 Transparency Act 21
A key component of our due diligence is emergency
preparedness, which involves rigorous contingency planning
and crisis management. We implement structured emergency
response plans to address potential operational disruptions,
safety incidents, or environmental hazards. These plans are
regularly tested through drills and audits to ensure readiness in
real-world scenarios.
Technology and equipment are also subject to thorough
assessments to evaluate potential risks related to functionality,
safety, and efficiency. By adopting cutting-edge technology
and maintaining strict maintenance protocols, we minimize
equipment failures, enhance operational efficiency, and
reduce environmental impact.
The logistics and supply chain are scrutinized to ensure that
subcontractors and partners meet our strict operational, ethical,
and regulatory standards. We conduct due diligence to assess
the integrity of our suppliers, ensuring compliance with human
rights and environmental standards throughout our value chain.
From a legal and financial perspective, we ensure that our
business activities comply with maritime regulations, contractual
obligations, and international laws governing ethical business
conduct. Financial risk assessments help us manage exposure to
market volatility, investment risks, and regulatory fines.
Additionally, we evaluate personnel and information and
communication technology (ICT) risks to safeguard the well-
being of our employees and the security of our digital
infrastructure. Cybersecurity measures are in place to prevent
data breaches, while workforce safety is prioritized through
robust training programs and compliance with occupational
health standards.
By maintaining a structured and multi-dimensional approach to
risk assessment, SeaBird Exploration actively identifies, prevents,
and mitigates negative impacts on human rights and the
environment. This commitment ensures that we operate
ethically, sustainably, and in alignment with both regulatory
expectations and industry best practices.
7. Key risk areas assessed
Risk parameters for human rights violations in the supply chain
The risk of human rights violations in the supply chain varies by
industry and geographical location. However, some common
risk factors include:
• Geographical location: Certain regions pose a higher
risk due to poor human rights records, political
instability, conflict, or high labor migration.
• Working conditions: Issues such as forced labor, child
labor, unfair wages, excessive working hours,
hazardous environments, and lack of union rights can
contribute to human rights violations.
• Environmental impact: Irresponsible environmental
practices, including pollution of water, air, and soil, as
well as destruction of natural habitats and indigenous
lands, can lead to human rights concerns.
• Business practices: Corruption, bribery, and abuse of
corporate power to pressure suppliers can negatively
impact human rights.
• Political involvement: Companies engaged in political
activities, such as supporting authoritarian regimes or
participating in illegal practices, may also contribute
to human rights violations.
Identifying these risk parameters is essential for assessing and
mitigating potential risks in the supply chain, ensuring
compliance with international human rights standards.
Supplier Evaluation Questionnaire
SeaBird Exploration has developed a questionnaire to assess
suppliers across key areas, including quality management,
health and safety, environmental management, corporate
social responsibility (CSR), and financial stability.
The CSR section of the questionnaire includes the following
questions:
• Is your company certified under a social
accountability management system?
• Does your company have a policy commitment to
respect human rights?
• Does your company conduct human rights due
diligence (e.g., human rights impact assessments) in
line with its size and operational context?
• Has your company ever been investigated or accused
of violating anti-corruption laws such as the FCPA or UK
Bribery Act, or engaged in improper payments to
public officials?
• Does your company have policies to maintain a
workplace free from abuse, threats, and
mistreatment?
• Do your hiring procedures ensure compliance with
local minimum age laws in accordance with ILO
conventions?
• Do you provide anti-corruption training to employees?
• Does your company acknowledge workers' rights to
collective bargaining?
• Do you have policies preventing discrimination based
on race, gender, age, religion, disability, sexual
orientation, or ethnicity?
• Do your workforce policies ensure reasonable working
hours and fair wages in accordance with ILO
conventions?
• Do you provide workers with legally mandated
holidays and leave?
Annual Report 2024 Transparency Act 22
Suppliers are also required to submit relevant policies and
indicate whether they hold certifications from recognized
organizations such as ISO or FPAL. If not, they must provide
additional details.
Code of Conduct
SeaBird Exploration has developed its own Code of Conduct,
available on our website. All Purchase Orders (POs) reference
this document, and by accepting an order, suppliers agree to
comply with its principles.
Supplier Audits
SeaBird conducts regular supplier audits to ensure compliance.
In 2024, two audits of manning agencies were completed. No
findings related to the Transparency Act were reported.
Below an overview of data from 2024 are found:
Through our environmental assessment, we have identified four
suppliers with a significant actual and potential negative
environmental impact. These suppliers are all responsible for
providing fuel and lubricants to our vessels, making them critical
to our operations but also key contributors to environmental risks.
Due to the essential nature of these supplies, switching to
alternative providers is not currently feasible. However, we are
committed to mitigating environmental impact through efforts
to optimize fuel efficiency and reduce overall consumption. By
implementing energy-saving measures, enhancing operational
efficiency, and exploring sustainable alternatives where
possible, we aim to minimize our environmental footprint while
maintaining operational reliability.
As part of our social assessment process, we have identified ten
suppliers with significant actual or potential negative social
impacts. These suppliers have been evaluated based on key risk
factors, including labor rights, corruption risk, and overall
compliance with ethical business practices.
Ten suppliers were identified from list of countries defined by the
Global Right Index as having significant actual or potential
negative social impacts, primarily related to labor rights
violations and corruption risks. These include six suppliers in
Malaysia, one in the Philippines, and three in UAE, Türkiye, and
India (considered lower risk).
The majority of supplier spending is concentrated In a few key
countries, with Norway accounting for the largest share by a
significant margin. The United States and the United Kingdom
also represent major spending hubs, with substantial financial
allocations spread across multiple suppliers. Some countries,
such as Croatia, receive a high amount of spending despite
having only a single supplier, indicating high-value contracts.
In Asia, Malaysia and the Philippines stand out due to notable
supplier spending, which may be linked to fuel supply or labor-
related costs. Additionally, some countries with relatively few
suppliers still receive considerable financial allocations,
suggesting that these vendors provide essential goods or
services.
8. Policies and measures to prevent
negative impacts
Risk assessments are an integral part of how we do business.
Already on tender stage, a risk assessment is performed, where
the following areas of activities are assessed: opportunities,
general, client, health, safety, security, environment, CSR,
emergency response and contingency, technology and
equipment, logistics, subcontractors/partners, operation,
maritime, legal, and contractual, finance, personnel, and ICT.
Within CSR the following are considered: local content
requirements, politically inconvenient regime, child labor,
Annual Report 2024 Transparency Act 23
medevac facilities and possibilities, local CSR regime and local
information campaign.
SeaBird Exploration’s values:
• Integrity: We treat everyone involved in the
organization - staff, stakeholders, and customers alike -
with dignity and respect. We are truthful and candid
and endeavor to keep our promises and deliver on our
commitments.
• Commitment: We are committed to creating a culture
that values individual and collective energy, spirit,
leadership, creativity, and innovation.
• Excellence: In everything the group do, we search for
excellence and continuous improvement to ensure
client satisfaction and business success.
Training
SeaBird Exploration has pre-defined training requirements for
both office and vessels. All job descriptions define what is
expected in terms of education and experience. In addition, a
matrix of required training to be taken ad hoc or annually is part
of our safety management system, and subject for yearly
review. The latest additions to the training matrix concern cyber
security and anti-corruption.
Management system
As a ship management company, SeaBird is controlled by
regulators to have a safety management system in place. This
system is approved by Class society and is subject to yearly
audit, both internal and external. In addition, are we audited by
clients and contractors on a regular basis. The safety
management systems contain among others document
control, incident reporting, management of change, risk
assessments, system of permit to work and all our processes and
procedures. All processes and procedures are reviewed on an
annual basis. The safety management system also includes
handling and follow-up of any findings from any kinds of audits.
Handling of deficits
Any kind of incidents or deviation from our standard operations
shall be reported and analyzed with the purpose of improving
health, safety, environmental, security and quality performance.
The process covers the reporting requirements defined in the ISM
Code, ISPS Code, MLC, ISO standards. All personal injuries, spills,
property damages, non-conformities and near-misses shall be
reported and considered for investigation as per SeaBirds
Incident Management Matrix.
Knowledge sharing
The group’s safety management system allows the possibility to
distribute the acquired knowledge within in the fleet. This is
encouraged through procedures, and the question is
automatically raised through the handling of incidents. For
safety observations, the possibility would be same, in addition
good practice and improvement suggestions are categories to
be used.
9. Stakeholder engagement and
grievance mechanisms
Effective stakeholder engagement is essential for maintaining
responsible business practices and ensuring transparency
throughout the supply chain. We actively engage with key
stakeholders, including suppliers, employees, customers,
regulatory bodies, and local communities, to identify risks,
address concerns, and promote sustainable operations. Regular
communication, audits, and assessments help us align with
international human rights, labor, and environmental standards.
To support ethical business conduct, we have established
grievance mechanisms that allow stakeholders to report
concerns related to human rights violations, labor conditions,
corruption, and environmental impacts. These mechanisms
provide a confidential and accessible platform for employees,
suppliers, and third parties to voice their concerns without fear
of retaliation. Complaints are reviewed thoroughly, and
corrective actions are taken where necessary.
Whistleblowing
SeaBird Exploration has developed a policy for whistleblowing in
order to prevent or detect and correct improper activities,
encourage all SeaBird employees and contractor personnel to
report what he or she in good faith believes to be a material
violation of law or policy or questionable business or financial
activities by any SeaBird employees. This includes members of
line management and senior management and ensures that a
formal reporting process is established, and to protect Reporting
Individuals from retaliatory action.
This procedure is also available for external parties, for example
suppliers, and can be reached on our public webpage.
SeaBird Exploration conducts yearly internal and external audits
to ensure that we follow our own and regulatory standards.
10. Methods for assessing the
effectiveness of risk mitigation
Assessing the effectiveness of risk mitigation requires a structured
and continuous evaluation process that combines direct
oversight, measurable indicators, and stakeholder input.
Regular audits play a crucial role in this process, allowing for a
detailed review of supplier compliance with ethical, labor, and
environmental standards. Both scheduled and unannounced
audits help verify that corrective actions are not only
implemented but sustained over time.
In addition to audits, key performance indicators are monitored
to track improvements in areas such as labor rights compliance,
safety performance, and environmental impact. These
indicators provide a data-driven approach to understanding
whether risk mitigation measures are yielding the desired results
or if further intervention is needed. Stakeholder feedback is
another essential component, as grievance mechanisms and
direct engagement with suppliers, employees, and external
parties offer valuable insights into ongoing concerns and areas
where risks may still persist despite implemented measures.
Annual Report 2024 Transparency Act 24
Beyond internal assessments, third-party certifications and
industry benchmarks serve as external validation of compliance.
Monitoring suppliers' adherence to recognized frameworks such
as ISO standards and responsible business certifications helps
ensure that mitigation strategies align with global best practices.
Periodic risk reviews further contribute to this effort by evaluating
changes in the risk landscape and comparing internal
performance with industry peers to identify areas for continuous
improvement.
11. Management's assurance of report
accuracy
Ensuring the accuracy and reliability of reports is a fundamental
responsibility of management, requiring a structured approach
to data verification, internal oversight, and adherence to
established reporting standards. To achieve this, management
implements rigorous internal controls that oversee data
collection, validation, and analysis processes, ensuring that
information presented in reports is both precise and reflective of
actual conditions.
Cross-functional reviews play a crucial role in this assurance
process, involving key departments such as compliance,
finance, legal, and sustainability. These teams collaborate to
verify data accuracy, ensuring consistency across different
reporting areas and identifying any discrepancies that may
require correction. Audits, both internal and external, further
strengthen this process by providing independent assessments
of data integrity and confirming alignment with regulatory
requirements and industry best practices.
In addition to formal audits, management relies on standardized
reporting frameworks, such as those established by international
regulatory bodies and sustainability organizations, to ensure
transparency and accountability. By adhering to these
frameworks, reports maintain credibility and comparability,
allowing stakeholders to assess performance with confidence.
Regular engagement with key stakeholders, including investors,
regulatory bodies, and external auditors, also serves as a
mechanism for validating report accuracy, as it provides an
opportunity for independent verification and feedback.
Annual Report 2024 Management Report 25
Management Report
This Management Report is prepared for Seabird Exploration PLC
(alone or together with its subsidiaries referred to as "Seabird" or
"Company" or "Group").
1.1 Operating activities
2024 was a year of high activity, with both vessels operating at
high utilization rates.
The Eagle Explorer completed a 2D project in Malaysia, which
concluded at the end of February 2024. In Medio-April a
decision was made to start mobilizing to the US Gulf of Mexico
where she was awarded a 365-day contract she now is
executing on.
The Fulmar Explorer remained fully committed throughout the
year to the 2 years’ contract secured in 2023 and which ends in
August 2025.
1.2 Seismic services outlook
Throughout 2024, demand remained strong, with expected
seasonal fluctuations.
SeaBird operates within two primary segments of the seismic
market: 2D acquisition and OBN (Ocean Bottom Node) source
services. The OBN segment is largely driven by increased
recovery efforts from producing fields. In recent years, seismic
spending has predominantly focused on improved oil recovery
(IOR) and near-field exploration activities.
This trend has led to a corresponding rise in demand for source
vessels supporting ocean bottom seismic (OBS) surveys. The OBS
market continues to be a core focus for the Company and is less
sensitive to oil price volatility compared to conventional 2D and
3D seismic segments.
Contract rates have shown improvement compared to previous
years and are expected to continue increasing.
SeaBird is well-positioned in this evolving market with a modern,
upgraded, and flexible fleet consisting of two owned vessels,
along with the capability to outfit and deploy additional vessels
as required.
1.3 Quality, Health, Safety, and
Environment
We are guided by our commitment to quality, health, safety,
and environment (QHSE).
SeaBird’s operating management system is central to the
company’s performance evaluation process and is fully
endorsed and supported by senior management through the
company’s policies.
In addition to quality, the system ensures safe operations. The
company had none Loss time incidents (LTI) in 2024.
SeaBird’s detailed analysis of past performance ensures that
continual improvements are being made to QHSE procedures
and also ensures that set QHSE targets for 2024 are achievable.
Focal points for 2025 is to continue to streamline operations
without compromising on health, safety, environment, and
quality.
Our management system is certified to ISO 14001:2015
(environmental management systems), ISO 9001:2015 (quality
management systems) and ISO 45001:2018 (occupational
health and safety management systems).
All SeaBird vessels comply with the requirements of the
International Safety Management code and the Marine Labor
Convention 2006.
The company continues to work actively on minimizing its
impact on the environment. We strive to achieve the highest
levels of environmental awareness and operational
competency. Continual improvement is achieved by
developing ever more stringent internal environmental plans
and targets annually. No environmental incidents were
recorded in 2024.
Established QHSE processes ensures the company:
✓ Provides a safe, healthy work environment both
offshore and onshore;
✓ Continuously improves operational performance and
quality;
✓ Deliver its services promptly and cost effectively;
✓ Considers the environment in all aspects of its
operations.
1.4 Transparency act
The Transparency Act came into effect in Norway on July 1,
2022, and requires several Norwegian companies to have a
relationship with how their business operations may impact
fundamental human rights and decent working conditions. The
background for this law is a clear expectation from the
authorities, society, and clients that businesses should act with
increased responsibility throughout their value chain.
SeaBird Exploration, as an ISO-certified company has already
developed routines to identify and manage risk in our day-to-
day operations, where negative impacts on human rights and
the environment in supply chains are identified. We have
developed a questionnaire, where among others forced labour,
child labour and other human rights violations, as well as
environmental risks and impacts are addressed. One of the
challenges encountered is to have the questionnaires returned
in a timely manner, but so far we have not identified any
negative impacts on neither human rights nor environment.
SeaBird Exploration has a system in place to address and
handles any non-compliance to our code of conduct. We also
carry out in-house audits to verify the compliance of our
suppliers (in 2024, 2 [two] companies where audited). In 2024,
Annual Report 2024 Management Report 26
we have used 300 different suppliers, 300 were assessed for
potential negative environmental impact and 270 for potential
negative social impact. Please see the separate transparency
act section for more information.
1.5 Financial calendar
6 June 2024
Annual General Meeting
15 May 2024
First quarter report
15 August 2024
Half-year report
13 November 2024
Third quarter report
20 February 2025
Fourth quarter report
30 April 2025
Annual report 2024
1.6 Shareholders’ table
20 largest shareholders per 31 December 2024:
Investor
No. of shares
31.12.2024
% of total
Mh Capital As
10,159,676
12.6%
Anderson Invest As
6,098,626
7.6%
Alden As
5,577,219
6.9%
Grunnfjellet As
5,100,000
6.3%
Storfjell As
3,255,775
4.0%
Interactive Brokers Llc
2,565,722
3.2%
Sigstad
2,250,000
2.8%
North Sea Group As
1,775,000
2.2%
Sigurdsen
1,728,660
2.1%
Tinden Holding As
1,700,000
2.1%
Nordnet Livsforsikring As
1,318,661
1.6%
Kfs As
1,210,000
1.5%
Hubris Industrier As
1,208,333
1.5%
Ubs Ag
1,089,140
1.4%
Håland
1,000,000
1.2%
F Storm As
953,122
1.2%
Husveg
714,204
0.9%
Mp Pensjon Pk
679,816
0.8%
Ps Investments As
655,344
0.8%
Austrått
605,850
0.8%
Total number owned by top 20
49,645,148
61.7%
Total number of shares
80,476,271
100.00%
1.7 Financial review
The consolidated financial statements of SeaBird Exploration Plc
as well as the separate financial statements for the parent
company are prepared in accordance with International
Financial Reporting Standards as adopted by the European
Union. Revenues were USD 35.5 million in 2024 compared to USD
34.6 million in 2023. Vessel utilization was strong at 92% in 2024, a
slight increase from 90% in 2023. The revenues were related to
contracts with seismic companies. Cost of sales was USD 17.0
million in 2024 (USD 19.1 million in 2023). SG&A was USD 4.3 million
in 2024, broadly in line with 2023 of USD 4.0 million. Depreciation
and amortization were USD 6.3 million in 2024, the same level as
on 2023. The Group reports a net profit of USD 6.2 million for 2024
(USD 3.1 million in 2023). Capital expenditures were USD 2.3
million in 2024, slightly down from USD 2.7 million in 2023. Cash
and cash equivalents at the end of the year were USD 4.1 million
(USD 2.2 million in 2023). Net cash from operating activities was
USD 12.4 million in 2024 (USD 8.5 million in 2023). The company’s
term loan facility is secured with 1st priority mortgage on Eagle
Explorer and Fulmar Explorer. As of 31 December 2024, the
balance of the facility was USD 10.7 million. Net interest-bearing
debt was USD 9.4 million as per 31 December 2024 (USD 14.1
million as per 31 December 2023). The company has financial
risk management objectives and policies to handle cash flow,
liquidity, and credit risk, which includes frequent forecasting,
review by management and board and by holding sufficient
cash reserves to fund the company’s operations. The company
does not hedge currency, credit, bunker, or other forms of risk.
Please see notes 3 and 29 in the Consolidated Financial
Accounts for further details on the company’s risk management
policies and key risk exposures.
1.8 Significant events during the year
On 23 February 2024, the parent Company announced that the
Board of Directors has proposed a cash distribution of NOK 0.25
per share.
On 18 April 2024, the parent Company announced that in the
extraordinary general meeting had been approved the cash
distribution of NOK 0.25 per share to its shareholders, which will
be effected through the reduction of share premium.
On 21 May 2024, the company announced 6-month contract
award with two 6-month options for Eagle Explorer.
On 26 June 2024, the company announced that the previous 6-
month contract for Eagle Explorer has been extended to 12
months with two 6-month options.
On 15 August 2024, the parent Company announced that the
Board of Directors has proposed a cash distribution of NOK 0.25
per share.
On 10 September 2024, the parent Company announced that
in the extraordinary general meeting had been approved the
cash distribution of NOK 0.25 per share to its shareholders, which
will be effected through the reduction of share premium.
On 13 November 2024, the parent Company announced that
the Board of Directors has proposed a cash distribution of NOK
0.40 per share.
On 19 December 2024, the parent Company announced that
in the extraordinary general meeting had been approved the
cash distribution of NOK 0.40 per share to its shareholders, which
will be effected through the reduction of share premium.
1.9 Subsequent events
The most significant events occurred after the date of the
statement of the financial position include:
On 3 February 2025, the Company announced that it has signed
a letter of intent (LOI) to combine with premier tender assisted
drilling provider, Energy Drilling Pte Ltd ("Energy Drilling") in a
Annual Report 2024 Management Report 27
share-for-share acquisition (the "Transaction"). The Transaction
will be carried out by issuing approximately 651 million new
SeaBird shares to Energy Drilling shareholders. The listed
company will in conjunction with the transaction change its
name, while the seismic and drilling businesses will continue to
operate as Seabird Exploration and Energy Drilling.
On 28 March 2025, the company announced that the final
transaction agreement of the combination of SeaBird
Exploration Plc and Energy Drilling Pte Ltd has been signed,
subject to approval at an Extraordinary General Meeting
("EGM") of SeaBird Exploration Plc and certain other customary
closing conditions.
On 25 April 2025 an Extraordinary General Meeting (EGM) was
held, at which all the resolutions put forward were adopted by
the shareholders. Amongst other, the transaction between
Seabird Exploration Plc and Energy Drilling to form Energy
Holdings was approved. The said transaction is subject to certain
customary closing conditions that are expected to be resolved
shortly.
For the full list of subsequent events please refer to Note 31 of
the consolidated financial statements.
1.10 Corporate Governance
Our corporate governance policy guides our operations and
culture. The company’s corporate governance policies are set
out in the corporate governance section of this annual report.
As Seabird Exploration Plc is listed on the Oslo Stock Exchange,
it follows the Norwegian Code of Practice for Corporate
Governance of 14 October 2021 (the “Code of Practice”).
Adherence to the Code of Practice is based on a “comply or
explain” principle, whereby companies will be expected to
either comply with the Code of Practice or explain why they
have chosen an alternative approach. The Code of Practice is
published on www. Nues.no/English.
1.11 Going concern
The company’s accounts have been prepared on the basis of
a going concern assumption. Please refer to note 2.1 in the
consolidated financial statements.
1.12 Group Outlook
The Company continues to observe robust tendering activity
within the OBN source segment, with clients increasingly seeking
longer-term commitments. Additionally, a number of promising
2D opportunities are emerging. This elevated activity, paired
with extended contract durations, appears to reflect the
broader energy landscape and sustained oil price levels.
SeaBird believes that oil and gas will remain a key component
of the global energy mix for the foreseeable future.
The focus on improved oil recovery and near-field
developments is expected to remain a key driver of demand for
the Company’s OBN source services. With vessels like the Eagle
Explorer and the Fulmar Explorer, SeaBird is well-positioned to
deliver consistent high utilization in this segment. OBN source is
anticipated to form the foundation of the Company’s seismic
service offering going forward.
2D seismic continues to be a cost-effective exploration method,
particularly relevant in regions where national energy security is
a strategic priority. Ongoing tendering activity in the 2D
segment reflects this demand.
To capitalize on these market dynamics, SeaBird is pursuing a
strategy of consolidating high-end capacity to increase market
share. The Company’s versatile equipment pool further
enhances its ability to leverage its seismic expertise and market
reach by outfitting third-party vessels under flexible charter
arrangements. With the capability to offer both 2D and OBN
source services, SeaBird is uniquely positioned to benefit from
the higher utilization potential of OBN operations, while also
capturing the attractive earnings potential offered by the niche
2D market.
1.13 Deviation from Q4 2024 report
The group's annual consolidated financial statement has been
adjusted compared to the unaudited quarterly results
announced on 24 February 2025. The total effect is a reduced
net profit of USD 0.5 million in the Company’s consolidated
statement of income and USD 0.3 million in reduced net assets
for 2024.
1.14 Resolution
The financial statements for the company have been prepared
in accordance with International Financial Reporting Standards,
as adopted by the European Union (EU). They were prepared
under the historical cost convention, except financial
investment and share options that are held at fair value through
profit and loss. Also, the Financial Statements have been
prepared on a going concern basis.
The company’s net profit for 2024 is USD 6.1 million. The profit for
the year will be transferred to the Group’s reserves.
1.15 Financial risk and instruments
SeaBird’s activities are exposed to a variety of financial risks:
market risk (including currency risk, interest rate risk and price
risk), credit risk and liquidity risk. The Group’s overall risk
management focuses on the unpredictability of financial
markets and monitors and controls risks with a potential
significant negative effect for the Group and evaluates to
minimize the risks if the cost of doing so is acceptable. For further
information please see Note 3 and 29 in the Consolidated
Financial Statement.
1.16 Group composition
With reference to Note 18 in the Consolidated Financial
Statement
Company
Shareholding
and voting rights
Biliria Marine Company Limited*
100%
GeoBird Management AS
100%
Harrier Navigation Company Limited
100%
Annual Report 2024 Management Report 28
Hawk Navigation Company Limited*
100%
Munin Navigation Company Limited*
100%
Oreo Navigation Company Limited*
100%
Raven Navigation Company Limited*
100%
Sana Navigation Company Limited
100%
Seabed Navigation Company Limited
100%
SeaBird Crewing Mexico S. DE R.L. DE C.V.
100%
SeaBird Exploration Americas Inc.
100%
SeaBird Exploration Asia Pacific PTE. Ltd.*
100%
SeaBird Exploration Crewing Limited
100%
SeaBird Exploration Cyprus Limited
100%
SeaBird Exploration Finance Limited
100%
SeaBird Exploration FZ-LLC
100%
SeaBird Exploration Multi-Client Limited
100%
SeaBird Exploration Nigeria Ltd.
100%
SeaBird Exploration Norway AS
100%
SeaBird Exploration Private Limited
26%
SeaBird Exploration Shipping AS
100%
SeaBird Exploration Vessels Limited
100%
SeaBird Seismic Mexico S. DE R.L. DE C.V.
100%
*) Biliria Marine Company Limited, Hawk Navigation Company
Limited, Munin Navigation Company Limited, Oreo Navigation
Company Limited, Raven Navigation Company Limited and
Seabird Exploration Asia PTE filed for voluntary liquidation.
1.17 Dividend and distribution
No dividend was distributed for the year ended 31 December
2024 (2023: USD nil).
The Group completed two cash distributions to its shareholders
during 2024 in the form of repayment of paid in capital. In June
2024 the company completed a NOK 0.25 repayment of paid in
capital (NOK 20.1 million or USD 1.9 million) and November 2024
the company completed a NOK 0.25 repayment of paid in
capital (NOK 20.1 million or USD 1.8 million). The shareholders of
the Group in December 2024 approved a NOK 0.4 per share
distribution of paid in capital, which was completed in February
2025 (NOK 32.2 million or USD 2.9 million).
For further information please see Note 26 in the Consolidated
Financial Statement.
1.18 Share capital
There are no any restrictions in exercising of voting rights. Please
be referred to Note 14 in the Consolidated Financial Statement
for further information.
1.19 Board of Directors
The Board of Directors consists of Ståle Rodahl (Executive
Chairman of the board), Øivind Dahl-Stamnes (Director), Hans
Christian Anderson (Director), Odd Sondre Svalastog Helsing
(Director) and Sverre Strandenes (Director).
The General Meeting on 6 June 2024 re-elected Mr Ståle Rodahl,
Mr Øivind Dahl-Stamnes, Mr Hans Christian Anderson, Mr Odd
Sondre Svalastog Helsing and Mr Sverre Strandenes as directors
of the Board.
In accordance with the Company’s Articles of Association, all
Directors who are presently members of the Board will continue
in office until the next Annual General Meeting and are eligible
for re-election.
The Board shall attend to the common interests of all
shareholders, and its members shall meet the Company’s need
for expertise, capacity and diversity. Attention should be paid to
the fact that the Board of Directors can function effectively as a
collegiate body. The Board will consider all aspects on diversity
when reviewing the composition and balance of the Board and
when conducting the annual Board effectiveness review. The
Board of Directors expect to progress on the Board members
and senior management diversity in the near future.
Please be referred to Note 28 for further information.
1.20 Committees
The audit committee has responsibility for overseeing financial
reporting and related internal controls, risk, independent and
internal auditors, and ethics and compliance. The Group’s audit
committee consist of:
• Ståle Rodahl – Executive Chairman of the board
• Sverre Strandenes – Director of the board
The Nominating committee members work to evaluate the
characteristics and performance of board members and are
responsible for selecting the best candidates for each seat on
the board. The Group’s nomination committee consist of:
• Stig Myrseth
• Per Øyvind Berge
• Hans Jan Henry Anderson
1.21 Internal control
The Group operates an internal control system and procedures,
the adequacy of which is evaluated by the Board of Directors
and by an independent Audit Committee which was
established by the Board of Directors. The operation of the
internal control system is intended to manage the risks of not
achieving business objectives and ensure to a reasonable
extent the proper management of the risks of its financial and
operational systems Group. The internal control system includes
procedures aimed at detection and prevention of errors,
omissions and/or fraud which they could cause material
inaccuracies in the preparation of the Group's financial
statements. The adequacy of the internal control system ensures
the validity of financial data and protection against material
errors in the presentation of the Group's results.
The Company, through internal controls implemented by
management and supervised by the Audit Committee,
implemented effective procedures for the composition and
preparation of financial statements and periodic information, as
provided by the Laws and Regulations of listed companies. In
addition to the above, the main features of these procedures,
are as follows:
Annual Report 2024 Management Report 29
• The financial statements of the Group companies and
the consolidated financial statements are prepared
with the responsibility of the Chief Financial Officer and
reviewed by the Audit Committee.
• The financial statements and the periodic
announcements are approved by the Board of
Directors prior to their publication.
Furthermore, the Group performs annual internal audit; Internal
audit to control compliance towards requirements in; ISO 9001,
ISO 14001, ISO 45001, ISM code, ISPS code, MLC and
requirements of the Management System.
1.22 Independent Auditors
The independent auditors RSM Cyprus Ltd have expressed their
willingness to continue in office as the Company’s auditors. A
resolution authorizing the Board of Directors to appoint and fix
their remuneration will be proposed at the next AGM.
Ståle Rodahl, Executive Chairman
Hans Christian Anderson, Director
Øivind Dahl-Stamnes, Director
Sverre Strandenes, Director
Odd Sondre Svalastog Helsing, Director
The board of directors Seabird Exploration PLC
Date 29 April 2025
Annual Report 2024 Consolidated Financial Statement 30
Consolidated Financial Accounts
Consolidated statement of income ........................................... 31
Consolidated statement of comprehensive income ................ 32
Consolidated statement of financial position ............................ 33
Consolidated statement of financial position ............................ 34
Consolidated statement of changes in equity .......................... 36
Consolidated statement of cash flow ........................................ 37
Notes to the consolidated financial statements ....................... 38
1 General information ........................................................ 38
2 Material accounting policy information ........................ 38
2.1 Basis of preparation ......................................................... 38
2.2 Adoption of new or revised standards and
interpretations .................................................................. 40
2.3 Consolidation ................................................................... 40
2.4 Segment reporting ........................................................... 41
2.5 Foreign currency translation ........................................... 41
2.6 Interests in associates ...................................................... 42
2.7 Property, plant and equipment ...................................... 42
2.8 Impairment of non-financial assets ................................ 43
2.9 Non-current assets held for sale...................................... 43
2.10 Financial instruments ....................................................... 43
2.10.1 Financial assets - classification ........................................ 43
2.10.2 De-recognition of financial assets .................................. 44
2.10.3 Financial assets: impairment and credit loss allowance
for ECL 44
2.10.4 Reclassification of financial assets .................................. 45
2.10.5 Financial assets write off .................................................. 45
2.10.6 Financial liabilities measurement categories ................. 45
2.10.7 De-recognition of financial liabilities .............................. 45
2.11 Inventories ........................................................................ 46
2.12 Cash and cash equivalents ............................................ 46
2.13 Share capital and share premium.................................. 46
2.14 Current and deferred tax ................................................ 46
2.15 Employee benefits and share based payments ........... 46
2.16 Provisions .......................................................................... 47
2.17 Revenue recognition ....................................................... 48
2.18 Dividend distribution ........................................................ 49
2.19 Comparatives .................................................................. 49
2.20 Contingent assets and liabilities ..................................... 49
2.21 Contract costs ................................................................. 49
2.22 Costs to fulfil a contract .................................................. 49
3 Risk factors and financial risk management ................. 50
3.1 Financial risk factors ........................................................ 50
3.2 Other risk factors .............................................................. 51
3.3 Fair value estimation ....................................................... 52
4 Critical accounting estimates and judgments ............. 52
5 Segment information ...................................................... 54
6 Revenue ........................................................................... 54
7 Property, plant and equipment ..................................... 55
8 Income tax expense ....................................................... 57
9 Multi-client library ............................................................ 57
10 Trade receivables ............................................................ 58
11 Other current assets ........................................................ 58
12 Inventories ........................................................................ 58
13 Cash and bank balances ............................................... 59
14 Share capital and share options .................................... 59
15 Trade and other payables .............................................. 60
16 Provisions and other liabilities ......................................... 60
17 Interest bearing loans and borrowings .......................... 61
18 Subsidiaries and associates within the Group ............... 62
19 Other financial items, net ............................................... 64
20 Other income (expenses), net ....................................... 64
21 Expenses by nature ......................................................... 65
22 Audit expenses ................................................................ 65
23 Employee benefit expense............................................. 65
24 Finance expense ............................................................. 66
25 Earnings per share ........................................................... 66
26 Dividends and distributions ............................................. 66
27 Commitments and contingencies ................................. 66
28 Related-party transactions ............................................. 67
29 Financial instruments ....................................................... 68
30 Long-term investments .................................................... 72
31 Subsequent events .......................................................... 72
32 Performance measurement definitions ......................... 73
33 Operating environment .................................................. 73
Annual Report 2024 Consolidated Financial Statement 31
Consolidated statement of income
Year ended 31 December
All figures in USD 000's
Note
2024
2023
Revenues
5, 6
35,454
34,635
Cost of sales
12, 21
-16,956
-19,062
Selling, general and administrative expenses
21
-4,263
-3,969
Other income (expenses), net
10, 20
-1,023
-2,939
Earnings before interest, tax, depreciation and amortization (EBITDA)
13,212
8,665
Gain/(loss) on sale of property, plant and equipment
173
74
Depreciation
7
-6,305
-6,274
Amortization
9
-
-54
Earnings before interest and taxes (EBIT)
7,080
2,411
Finance income
152
63
Finance expense
24
-2,017
-2,588
Share of net income/(loss) of associates
18
-16
-26
Other financial items, net
19
-311
3,539
Profit/(loss) before income tax
4,888
3,399
Income tax
8
-190
-272
Profit/(loss) continuing operations
4,698
3,127
Net profit/(loss) discontinued operations
18
1,494
-
Profit/(loss) for the period
6,192
3,127
Earnings per share
25
0.08
0.04
From continuing operations
25
0.06
0.04
From discontinued operations
25
0.02
-
Annual Report 2024 Consolidated Financial Statement 32
Consolidated statement of comprehensive income
Year ended 31 December
All figures in USD 000's
Note
2024
2023
Profit/(loss)
6,192
3,127
Other comprehensive income
-
-
Exchange difference arising on the consolidation of foreign companies financial
accounts
-
-
Total other comprehensive income, net of tax
-
-
Total comprehensive income
6,192
3,127
Annual Report 2024 Consolidated Financial Statement 33
Consolidated statement of financial position
All figures in USD 000's
Note
2024
2023
ASSETS
Non-current assets
Property, plant and equipment
7
35,483
39,453
Investment in associates and other investments (FVTPL)
18
130
327
Total non-current assets
35,613
39,780
Current assets
Inventories
12
378
1,125
Trade receivables
10
6,712
9,642
Other current assets
11
3,181
1,258
Restricted cash
13
67
42
Cash and cash equivalents
13
4,060
2,176
Total current assets
14,398
14,243
TOTAL ASSETS
50,011
54,023
Annual Report 2024 Consolidated Financial Statement 34
Consolidated statement of financial position
As of 31 December
All figures in USD 000's
Note
2024
2023
EQUITY
Shareholders' equity
Paid in capital
14
21,058
36,944
Currency translation reserve
-395
-395
Share options granted
14
258
153
Retained earnings
8,477
-9,899
TOTAL EQUITY
29,398
26,803
LIABILITIES
Non-current liabilities
Loans and borrowings non-current
17
10,205
13,115
Total non-current liabilities
10,205
13,115
Current liabilities
Trade payables
15
2,122
3,821
Contract liability
15
844
469
Other payables
15
2,053
3,124
Provisions and other liabilities
16
624
2,249
Loans and borrowings current
17
3,253
3,119
Tax liabilities
8
1,409
1,323
Total current liabilities
10,305
14,105
Liabilities classified as discontinued operations
18
103
-
TOTAL LIABILITIES
20,613
27,220
TOTAL EQUITY AND LIABILITIES
50,011
54,023
Annual Report 2024 Consolidated Financial Statement 35
On 29 April 2025, the Board of Directors of SeaBird Exploration Plc authorized these consolidated financial statements for issue.
Ståle Rodahl – Executive Chairman
Hans Christian Anderson – Director
Øivind Dahl-Stamnes – Director
Sverre Strandenes – Director
Odd Sondre Svalastog Helsing – Director
Annual Report 2024 Consolidated Financial Statement 36
Consolidated statement of changes in equity
All figures in USD 000's
Note
Paid in
capital
Currency
translation
reserve
Share
options
granted
Retained
earnings
Non-
controlling
intrests
Total
equity
Equity as of 1 January, 2023
36,944
-395
595
-8,404
1,075
29,815
Profit/(Loss)
-
-
-
3,127
-
3,127
Other comprehensive income
-
-
-
-
-
-
Total comprehensive income
-
-
-
3,127
-
3,127
Distribution of Green Minerals AS
-
-
-
-4,610
-
-4,610
Deconsolidation of Green Minerals
AS
-
-
-240
-
-1,075
-1,315
Net share options movement
-
-
-202
-
-
-202
Other equity transactions
-
-
-
-12
-
-12
Total contributions by and
distributions to owners
-
-
-442
-4,622
-1,075
-6,139
Equity as of 31 December 2023
36,944
-395
153
-9,899
-
26,803
Profit/(Loss) for the year
-
-
-
6,192
-
6,192
Other comprehensive income for the
year
-
-
-
-
-
-
Total comprehensive income for the
year
-
-
-
6,192
-
6,192
Share premium reduction
14
-12,192
-
-
12,192
-
-
Capital distribution
14
-3,694
-
-
-
-
-3,694
Net share options movement
-
-
105
-
-
105
Other equity transactions
-
-
-
-8
-8
Total contributions by and
distributions to owners
-15,886
-
105
12,184
-
-3,597
Equity as of 31 December 2024
21,058
-395
258
8,477
-
29,398
Annual Report 2024 Consolidated Financial Statement 37
Consolidated statement of cash flow
Year ended 31 December
All figures in USD 000's
Note
2024
2023
Cash flows from operating activities
Profit/(loss) before income tax
4,888
3,399
Adjustments for
-
Depreciation and amortization
7, 9
6,305
6,327
Movement in provision
16
-
1,430
Loss /(gain) from disposal of fixed assets
-173
-74
Allowance for ECL
1,678
2,060
Unrealized exchange (gain)/loss
-
347
Interest expense on financial liabilities
24
2,017
2,588
Other items
322
-4,987
Net paid income tax
8
-104
-
(Increase)/decrease in inventories
747
-482
(Increase)/decrease in trade receivables, contract assets and restricted cash
-828
5,602
Increase/(decrease) in trade payables, contract liability and other payables
-2,534
-8,038
Increase/(decrease) in tax liabilities
-
323
Net cash used in operating activities
12,318
8,495
Cash flows from investing activities
Capital expenditures
7
-2,336
-2,745
Proceeds from disposal of PPE
173
249
Net cash used in investing activities
-2,163
-2,496
Cash flows from financing activities
Receipts from borrowings
17
-
14,200
Repayment of borrowings
17
-2,840
-16,997
Interest paid
-1,782
-1,996
Dividend received
18
45
119
Distribution to shareholders
14
-3,694
-
Net cash from financing activities
-8,271
-4,674
Net decrease in cash and cash equivalents
1,884
1,325
Cash and cash equivalents at beginning of the period, unrestricted
13
2,176
851
Cash and cash equivalents at end of the period, unrestricted
13
4,060
2,176
Annual Report 2024 Consolidated Financial Statement 38
Notes to the consolidated financial statements
All figures in USD 1.000, if not stated otherwise. The consolidated financial statements and the separate financial statements are an integral
part of the annual financial statements and should be read in conjunction with each other.
1 General information
Seabird Exploration Plc (alone or together with its subsidiaries referred to as “SeaBird” or “company” or “Group”) is a global provider of
marine seismic data for the oil and gas industry. SeaBird specializes in high quality operations within the high end of the 2D and source
vessel market. SeaBird concentrates on contract seismic surveys. The main success criteria for the Group are an unrelenting focus on
quality, health, safety and environment (QHSE), combined with efficient collection of high-quality seismic data.
The company was incorporated in the British Virgin Islands as a limited liability company in 2000. The company was re-domiciled to Cyprus
on 18 December 2009. Seabird has direct ownership in two vessels and the company is listed on Oslo Børs with ticker SBX. The company’s
registered address is at Panteli Katelari 16, Diagoras House floor 7, 1097, Nicosia, Cyprus. The Group main office is located in Bergen
(Norway) with the office address Sandviksbodene 68, 5035 Bergen. SeaBird Exploration Plc is tax resident in Norway and registered in the
corporate registers both in Norway and Cyprus.
At 31 December 2024, Seabird’s owned fleet consisted of the seismic vessels “Eagle Explorer” (Eagle) and “Fulmar Explorer” (Fulmar). In
addition, the Group has a substantial pool of seismic equipment which could be operated on third parties’ vessels. At year-end there
were no chartered vessels in operation.
The accompanying consolidated and separate financial statements represent the activities of SeaBird for the year ended 31 December
2024 (the “period”). These consolidated and separate financial statements were authorized for issue by the board of directors on 29 April
2025.
2 Material accounting policy information
The accounting policies that are material to the Group are set out below. These policies have been consistently applied to all years
presented in these consolidated financial statements unless otherwise stated.
2.1 Basis of preparation
These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards.
(IFRS) as adopted by the European Union (EU) and the requirements of the Cyprus Companies Law, Cap.113. The consolidated financial
statements have been prepared under the historical cost convention, except financial investment and share options that are held at fair
value through profit and loss. The preparation of financial statements also requires the use of assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Although these estimates are based on management’s best knowledge of current
events and actions, actual results may ultimately differ from those estimates. The areas involving a higher degree of judgment or
complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 4
Critical accounting estimates and judgments.
The Consolidated Financial Statement are presented in United States Dollars (USD) and all values are rounded to the nearest thousand
(USD 1,000), except when otherwise stated.
Going concern assumption
Management has conducted a review of the going concern assumption considering all relevant information available up to the date
the consolidated and parent Financial Statements were issued, taking into account all available information about the future, for at least
12 months from the reporting date.
The assessment of going concern relies heavily on the ability of the Group to secure future cash inflows over the going concern assessment
period which extends through to a period of at least 12 months from the date of approval of the financial statements to meet its liabilities
as they become due. The following steps have been undertaken to allow Management to conclude on the appropriateness of the going
concern assumption:
a. Understand what could cause the Group not to be a going concern
b. Consider the current liquidity position, customer and sector position, market and operational risks and availability of additional
funding if required
Annual Report 2024 Consolidated Financial Statement 39
c. Board review of the base case forecast produced by management
d. Perform reverse stress tests to assess under what circumstances going concern would become a risk – and assess the likelihood
of whether they could occur
e. Examine other mitigating actions to remedy the stress test scenarios
f. Conclude upon the going concern assumption
(a) Understand what could cause the Group not to be a going concern
The potential scenarios which could lead to the Group not being a going concern are:
• Not having sufficient cash to meet liabilities as they fall due and therefore not being able to provide services to its customer base
and meet financing obligations. The main source of operating cash flows for the Group is the securing of employment for its
fleet. As of 31 December 2024 the Group was in a net current asset position of USD 4.1 million.
• A non-remedied breach of the financial covenants of Sparebank 1 SMN bank (Note 17 Interest bearing loans and borrowings)
and failure to obtain a waiver. Under the terms of the agreement this could lead to the outstanding balance becoming due for
immediate repayment. These covenants are:
✓ Minimum fee cash: USD 1 million
✓ Positive working capital excluding current portion of interest-bearing debt
✓ Minimum Equity ratio 45 %
(b) Consider the current liquidity position, customer and sector position, market and operational risks and availability of additional
funding if required.
At 31 December 2024 unrestricted cash and cash equivalents amounted to USD 4.1 million, while total current assets amounted to USD
14.4 million.
As at 31 December 2024, the Group had Interest-bearing loans and borrowings of USD 13.5 million, current liabilities of USD 10.3 million and
current liabilities excluding interest bearing debt of USD 7.1 million. As at 31 December 2024, the Group’s total equity amounted to USD
29.4 million, after a net profit of USD 6.2 million for the year.
The general market outlook continued to improve in 2024, with both tendering activity and rate level being higher now than were a year
ago. At the same time the seismic industry has gone through a momentous resetting where the fleet of active vessels has been reduced
by more than 70% and the number of players has been drastically reduced. Following the conversion of Fulmar Explorer in 2021
(completed early 2022) the company is well positioned to take advantage of the strong market. The attractiveness of the Group’s assets
is also reflected in the contracts secured during the year. This has resulted in the best yearly EBITDA result for eight years.
If needed, the company may also attempt to raise liquidity through the stock exchange by utilizing equity market opportunities. This was
successfully applied on two occasions during 2022. The access to the public equity market does not exclude the possibility to dispose of
tangible fixed assets held by the company and delay scheduled investment programs and capital expenditure if required to ensure
additional liquidity. This was also implemented in 2022 through the sale of one non-core vessel with a substantial loan repayment effect.
(c) Board review of the base case forecast produced by management
The management has developed a base case cashflow forecast incorporating the most likely scenarios based on historic data and
contract activity. The following steps were taken by the Board to ensure the most accurate base case budget is prepared:
- The inputs and assumptions used in the base case cashflow forecast were compared to external market sources to ensure
reasonability.
- Inputs and assumptions were challenged through historic data.
- Reviewed the variance analysis between prior year projected cashflows versus actual cash flows.
- Compared employment rates to approved and prospective contracts.
- Challenged the cost base used for contracts.
- Ensured the base cashflow is updated with actual data from 2024.
- Examined different scenarios, their likelihood and impact on the Group.
- Reviewed the probability of signing new contracts, based on current negotiation developments.
Annual Report 2024 Consolidated Financial Statement 40
The main assumptions/facts used in the cash flow projections include the estimated EBITDA to be generated in 2025 and the inclusion of
cash inflows relating to potential contracts. If these assumptions are accurately estimated there should be no breach of covenants in the
next twelve months and the Group will be able to cover its short-term liabilities.
(d) Perform reverse stress tests to assess under what circumstances going concern would become a risk
The base case forecast model was further adjusted to establish at what point the Group may not be able to meet its obligations. The
Management has developed two stress test scenarios:
1. The first stress test scenario incorporates a reduced utilization or reduced margins by 50% on new employment. In this scenario,
the company will be able to meet all its commitments.
2. The second stress test scenario includes only the signed contracts up to the signing date of the financial statements. In its
assessment, the board considers availability of alternative sources of financing to mitigate the impact on liquidity, including cost
saving measures and tighter working capital control as a first response. The Group has contingency plans in place in case of a
prolonged stand-off, which will take the Group’s run-rate on cash costs down to a very low level, enabling it to handle a period
of low demand from the oil companies. However, based on the sensitivity, the Group will have sufficient cash to cover its
expenses and commitments during the forecast period.
Hence, for the going concern becoming a risk for the Group, it would need to see a scenario where the existing contract is cancelled
and new contracts are at lower profitability than the existing one would be awarded. That said, the current project progresses properly
and there are no any events leading to such incidents.
(e) Examine other mitigating actions to remedy the stress test scenarios.
- Diversification of operations
- Alternative credit funding sources
- The Group is listed in the Oslo Stock Exchange and has access to funds from shareholders, if needed.
- As per above this tool was applied successfully twice during 2022; the latest share issue in July 2022 was substantially
oversubscribed indicating the general interest to invest in the seismic market and the Group.
(f) Conclude upon the going concern assumption
The above matters do not reveal any significant doubt over the Group’s ability to continue as a going concern. However, Management
determined that the actions taken so far and the available options are sufficient regarding this matter of going concern, and has therefore
prepared the consolidated and stand-alone financial statements on a going concern basis.
2.2 Adoption of new or revised standards and interpretations
As from 1 January 2024, the Group and the parent Company adopted all changes to International Financial Reporting Standards (IFRSs)
as adopted by the EU, which are relevant to its operations. This adoption, did not have a material effect on the consolidated and stand-
alone Financial Statements.
New standards, amendments, IFRSs or IFRIC interpretations for annual reporting periods after 31st of December 2024 are expected to not
be significant for the Group’s financial statements going forward, apart from IFRS 18 as disclosed below.
IFRS 18 Presentation and Disclosure in Financial Statements
This standard is applicable to annual reporting periods beginning on or after 1 January 2027 and early adoption is permitted. The standard
replaces IAS 1 'Presentation of Financial Statements', with many of the original disclosure requirements retained and there will be no
impact on the recognition and measurement of items in the financial statements. But the standard will affect presentation and disclosure
in the financial statements, including introducing five categories in the statement of profit or loss and other comprehensive income:
operating, investing, financing, income taxes and discontinued operations. The standard introduces two mandatory sub-totals in the
statement: 'Operating profit' and 'Profit before financing and income taxes'. There are also new disclosure requirements for 'management-
defined performance measures', such as earnings before interest, taxes, depreciation and amortisation ('EBITDA') or 'adjusted profit'. The
standard provides enhanced guidance on grouping of information (aggregation and disaggregation), including whether to present this
information in the primary financial statements or in the notes. The Group and the parent Company will adopt this standard from 1 January
2027 and it is expected that there will be a significant change to the layout of the statement of profit or loss and other comprehensive
income.
2.3 Consolidation
(A) Subsidiaries
Annual Report 2024 Consolidated Financial Statement 41
The consolidated financial statements incorporate the financial statements of the company and entities (including structured entities)
controlled by the company (its “subsidiaries”).
Control is achieved when the company:
- has power over the investee;
- is exposed, or has rights, to variable returns from its involvement with the investee; and
- has the ability to use its power to affect its returns.
The company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more
of the three elements of control listed above.
When the company has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are
sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally.
Subsidiaries are fully consolidated from the date on which control is transferred to SeaBird. They are de-consolidated from the date that
control ceases. The purchase method of accounting is used to account for the acquisition of subsidiaries by SeaBird. The cost of an
acquisition is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of
exchange. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially
at their fair values at the acquisition date, irrespective of the extent of any minority interest. The excess of the cost of acquisition over the
fair value of SeaBird’s share of the identifiable net assets acquired is recorded as goodwill. If the cost of acquisition is less than the fair
value of the net assets of the subsidiary acquired, the difference is recognized directly in the income statement.
Inter-company transactions, balances and unrealized gains on transactions between SeaBird companies are eliminated. Accounting
policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by SeaBird. For a complete
listing of subsidiaries please refer to note 18 Subsidiaries and associates within the Group.
(B) Non-controlling interests (minority interests)
Changes in a parent's ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary are equity
transactions (meaning transactions with owners in their capacity as owners).
For more information regards to non-controlling interest see note 18 Subsidiaries and associates within the Group.
If the Group loses control of a subsidiary with non-controlling interest;
- the Group derecognizes the assets and liabilities of the former subsidiary from the consolidated statement of financial position
- recognizes any investment retained in the former subsidiary at its fair value when control is lost and subsequently accounts for it
and for any amounts owed by or to the former subsidiary in accordance with relevant IFRSs. That fair value shall be regarded as
the fair value on initial recognition of a financial asset in accordance with IFRS 9 or, when appropriate, the cost on initial
recognition of an investment in an associate or joint venture.
- recognizes the gain or loss associated with the loss of control attributable to the former controlling interest
2.4 Segment reporting
A segment is a distinguishable component of the Group that is engaged in providing related services (business segment), or in providing
services within a particular economic environment (geographical segment), which is subject to risks and returns that are different from
those of other segments. The Group has one business segment. The CEO of the Group is considered to be the Chief Operating Decision
Maker.
2.5 Foreign currency translation
(A) Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic
environment in which the entity operates (the functional currency).
The functional and presentation currency of the parent Company is US dollars.
The consolidated financial statements are presented in US dollars, which is also the Group’s functional currency.
(B) Transactions and balances
Foreign currency transactions are translated into the presentation currency using the exchange rates prevailing at the dates of the
transactions or valuation where items are re-measured. Foreign exchange gains and losses resulting from the settlement of such
Annual Report 2024 Consolidated Financial Statement 42
transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are
recognized in the income statement. Foreign exchange gains and losses arising from financing activities are recognized in finance costs
while all other foreign exchange gains and losses are recognized in their individual line items.
(C) Seabird companies
The results and financial position of all the SeaBird entities that have a functional currency different from the presentation currency are
translated into the presentation currency as follows:
I. assets and liabilities for each balance sheet item are translated at the closing rate at the date of that balance sheet;
II. income and expenses are translated at average exchange rates during the year (unless this average is not a reasonable
approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses
are translated at the dates of the transactions); and
III. all resulting exchange differences are recognized as a separate component of equity.
On consolidation, exchange differences arising from the translation of the net investment in foreign operations are taken to shareholders’
equity. When a foreign operation is sold, exchange differences that were recorded in equity are recognized in the income statement as
part of the gain or loss on sale.
2.6 Interests in associates
Associates
Associates are entities over which the consolidated entity has significant influence but not control or joint control. Investments in associates
are accounted for using the equity method. Under the equity method, the share of the profits or losses of the associate is recognised in
profit or loss and the share of the movements in equity is recognised in other comprehensive income. Investments in associates are carried
in the statement of financial position at cost plus post-acquisition changes in the consolidated entity's share of net assets of the associate.
Goodwill relating to the associate is included in the carrying amount of the investment and is neither amortised nor individually tested for
impairment. Dividends received or receivable from associates reduce the carrying amount of the investment.
When the consolidated entity's share of losses in an associate equal or exceeds its interest in the associate, including any unsecured long-
term receivables, the consolidated entity does not recognise further losses, unless it has incurred obligations or made payments on behalf
of the associate.
The consolidated entity discontinued the use of the equity method upon the loss of significant influence over the associate and recognises
any retained investment at its fair value. Any difference between the associate's carrying amount, fair value of the retained investment
and proceeds from disposal is recognised in profit or loss.
The Group holds an interest in an associate entity, as illustrated in Note 18 (Subsidiaries and associates within the Group). The accounting
policies of the entity are aligned with those of the Group. Therefore, no adjustments have been made when measuring and recognizing
the Group’s share of profit or loss of the investees after the acquisition date.
2.7 Property, plant and equipment
Property, plant and equipment comprise mainly vessels and seismic equipment on board owned or chartered vessels. Vessels, seismic
equipment designated for source and 2D operation and office equipment are carried at historical cost, less accumulated depreciation
and impairment.
Cost represents either the purchase price or the fair value at the time of acquisition if the purchase was through a business combination.
Certain expenditures for conversions and major improvements are also capitalized if they appreciably extend the life or increase the
earning capacity of a vessel. Elements of cost include costs that are directly attributable to the improvement or conversion project but
not administration and other general overhead costs. Subsequent costs are included in the asset’s carrying amount or recognized as a
separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and
the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement during the
financial period in which they are incurred.
Depreciation on property, plant and equipment is calculated on a straight-line basis (historical cost less residual value) over their estimated
useful lives, as follows:
- Vessels: Up to 27 years
- Conversion expenditures: Vessels remaining life
- Seismic equipment (immovable): Vessels remaining life
- Seismic equipment (movable): 3 to 10 years
- Office equipment: 3 years
Annual Report 2024 Consolidated Financial Statement 43
The vessels are depreciated from the date they are available for use, i.e. when they are in the location and condition necessary for them
to be capable of operating in the manner intended by management. Costs for special periodic and class renewal surveys (dry-docking)
are capitalized and depreciated over the estimated period between surveys. Other maintenance and repair costs are expensed as
incurred. The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.
An asset’s carrying amount is derecognized upon disposal or when no future economic benefits are expected to arise from the continued
use of the asset. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included under
“Gain/(loss) on sale of property, plant and equipment” in the income statement.
Property, plant and equipment under construction or under conversion are recognized at cost less impairment. Elements of cost include
costs that are directly attributable to the conversion project but not administration and other general overhead costs.
2.8 Impairment of non-financial assets
At the end of each reporting period, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether
there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the
asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable
amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.
When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating
units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation
basis can be identified.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and
whenever there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows
are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the
risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or
cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced
to its recoverable amount. An impairment loss is recognized in profit or loss.
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised
estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have
been determined had no impairment loss been recognized for the asset (cash-generating unit) in prior years. A reversal of an impairment
loss is recognized in profit or loss.
2.9 Non-current assets held for sale
Non-current assets (and disposal groups) classified as held for sale are measured at the lower of carrying amount and fair value less costs
to sell.
Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered through a sale transaction
rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset (or disposal
group) is available for immediate sale in its present condition. Management must be committed to the sale which should be expected
to qualify for recognition as a completed sale within one year from the date of classification.
Property, plant and equipment and intangible assets are not depreciated or amortized once classified as held for sale.
Assets and liabilities classified as held for sale are presented separately as current items in the statement of financial position.
2.10 Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another
entity.
Financial assets and financial liabilities are recognized in the Group’s balance sheet when the Group becomes a party to the contractual
provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value and are subsequently held at fair
value or amortized cost based on the classification provisions described below.
2.10.1 Financial assets - classification
The Group classifies its financial assets in the following measurement categories:
- those to be measured subsequently at fair value through profit or loss
- those to be measured at amortized cost
Annual Report 2024 Consolidated Financial Statement 44
The classification and subsequent measurement of debt financial assets depends on: (i) the Group's business model for managing the
related assets portfolio and (ii) the cash flow characteristics of the asset.
In order for a financial asset to be classified and measured at amortized cost it needs to give rise to cash flows that are ‘solely payments
of principal and interest (SPPI)’ on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an
instrument level.
The Group’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The
business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both.
Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the
market place (regular way trades) are recognized on the trade date, i.e., the date that the Group commits to purchase or sell the asset.
For purposes of subsequent measurement, financial assets are classified in four categories:
- Financial assets at amortized cost (debt instruments)
- Financial assets at fair value through profit or loss
Financial assets at amortized cost (debt instruments)
This category is the most relevant to the Group. The Group measures financial assets at amortized cost if both of the following conditions
are met:
- The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows,
and
- The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest
on the principal amount outstanding.
Financial assets at amortized cost are subsequently measured using the effective interest (EIR) method and are subject to impairment.
Gains and losses are recognized in profit or loss when the asset is derecognized, modified or impaired.
The Group’s financial assets at amortized cost includes trade receivables, cash and cash equivalents and restricted cash.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated upon initial
recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial assets are
classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including
separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments.
Financial assets with cash flows that are not solely payments of principal and interest are classified and measured at fair value through
profit or loss, irrespective of the business model. Notwithstanding the criteria for debt instruments to be classified at amortized cost or at
fair value through OCI, as described above, debt instruments may be designated at fair value through profit or loss on initial recognition
if doing so eliminates, or significantly reduces, an accounting mismatch.
Financial assets at fair value through profit or loss are initially recognized at fair value, with transaction costs recognized immediately in
profit or loss. Subsequent to initial recognition, are re-measured at fair value, with gains and losses arising from changes in fair value
recognized in the profit or loss in the period in which they arise.
This category includes the listed investment shown within the line long-term investments.
2.10.2 De-recognition of financial assets
Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred
and the Group has transferred substantially all the risks and rewards of ownership.
On de-recognition of a financial asset in its entirety, the difference between the carrying amount (measured at the date of de-
recognition) and the consideration received (including any new asset obtained less any new liability assumed) shall be recognized in
profit or loss.
2.10.3 Financial assets: impairment and credit loss allowance for ECL
The Group assesses on a forward looking basis the ECL for debt instruments (including loans) measured at amortized cost and with the
exposure arising from loan commitments and financial guarantee contracts. The Group measures ECL and recognizes credit loss
allowance at each reporting date. The measurement of ECL reflects: (i) an unbiased and probability weighted amount that is determined
by evaluating a range of possible outcomes, (ii) time value of money and (iii) all reasonable and supportable information that is available
without undue cost and effort at the end of each reporting period about past events, current conditions and forecasts of future conditions.
Annual Report 2024 Consolidated Financial Statement 45
The carrying amount of the financial assets is reduced through the use of an allowance account, and the amount of the loss is recognized
in profit or loss.
Debt instruments measured at amortized cost are presented in the consolidated statement of financial position net of the allowance for
ECL.
ECLs are recognized in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial
recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12 month (a 12-month ECL).
For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required
for credit losses expected over the remaining life of the exposure (a lifetime ECL).
For trade receivables and other current assets, the Group applies a simplified approach in calculating ECLs. Therefore, the Group does
not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date.
A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of that
financial asset have occurred. Evidence that a financial asset is credit-impaired includes observable data about events such as:
significant financial difficulty of the issuer or the borrower; a breach of contract, such as a default or past due event; it is becoming
probable that the borrower will enter bankruptcy or other financial reorganization; or the disappearance of an active market for that
financial asset because of financial difficulties.
An impairment loss is calculated as the difference between an asset’s carrying amount and the present value of the estimated future
cash flows discounted at the asset’s original effective interest rate. Losses are recognized in profit or loss. When the Group considers that
there are no realistic prospects of recovery of the asset, the relevant amounts are written off. If the amount of impairment loss subsequently
decrease and the decrease can ben related objectively to an event occurring after the impairment was recognized, then the previously
recognized impairment loss in reversed through profit or loss.
2.10.4 Reclassification of financial assets
Financial instruments are reclassified only when the business model for managing those assets changes. The reclassification has a
prospective effect and takes place from the start of the first reporting period following the change.
2.10.5 Financial assets write off
Financial assets are written off, in whole or in part, when the Group exhausted all practical recovery efforts and has concluded that there
is no reasonable expectation of recovery. The write off represents a de-recognition event. The Group may write off financial assets that
are still subject to enforcement activity when the Group seeks to recover amounts that are contractually due, however, there is no
reasonable expectation of recovery.
2.10.6 Financial liabilities measurement categories
Financial liabilities are initially recognized at fair value and classified as subsequently measured at amortized cost, except for (i) financial
liabilities at FVTPL: this classification is applied to derivatives, financial liabilities held for trading (e.g. short positions in securities), contingent
consideration recognized by an acquirer in a business combination and other financial liabilities designated as such at initial recognition
and (ii) financial guarantee contracts and loan commitments.
The Group’s financial liabilities are classified as subsequently measured at amortized cost.
Borrowings
Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently carried at amortized cost.
Any difference between the proceeds (net of transaction costs) and the redemption value is recognized in profit or loss over the period
of the borrowings, using the effective interest method, unless they are directly attributable to the acquisition, construction or production
of a qualifying asset, in which case they are capitalized as part of the cost of that asset. Borrowings are classified as current liabilities,
unless the Group has an unconditional right to defer settlement of the liability for at least twelve months after the consolidated statement
of financial position date.
2.10.7 De-recognition of financial liabilities
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. The difference between
the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in profit or loss.
When the Group exchanges with the existing lender one debt instrument into another one with the substantially different terms, such
exchange is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Similarly,
the Group accounts for substantial modification of terms of an existing liability or part of it as an extinguishment of the original financial
liability and the recognition of a new liability. In determining whether a modification of terms of a liability is a substantial modification, the
Group considers quantitative and qualitative factors. It is assumed that the terms are substantially different if the discounted present value
of the cash flows under the new terms, including any fees paid net of any fees received and discounted using the original effective rate
Annual Report 2024 Consolidated Financial Statement 46
is at least 10 per cent different from the discounted present value of the remaining cash flows of the original financial liability. If the
modification is not substantial, the difference between: (1) the carrying amount of the liability before the modification; and (2) the present
value of the cash flows after modification, is recognized in profit or loss as the modification gain or loss.
2.11 Inventories
Inventories are stated at the lower of cost and net realizable value. Cost is determined using the first-in, first-out (FIFO) method. The Group’s
inventories comprise of fuel and lube oils.
2.12 Cash and cash equivalents
Cash and cash equivalents includes cash in hand and at banks, short term deposits with a maturity of three months or less and other short-
term highly liquid investments. Restricted cash which is not available for use by the Group is excluded.
2.13 Share capital and share premium
Ordinary share capital and share premium are classified as equity. The difference between the fair value of the consideration received
by the company and the nominal value of the share capital issued is taken to the share premium account.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the
proceeds.
The Group distributes cash to shareholders when appropriately authorised and no longer at the discretion of the Group.
Where and if any group company purchases the parent company’s equity share capital (treasury shares), the consideration paid,
including any directly attributable incremental costs (net of income taxes), is deducted from equity attributable to the Group’s equity
holders until the shares are cancelled or reissued. Where such shares are subsequently reissued, any consideration received (net of any
directly attributable incremental transaction costs and the related income tax effects) is included in equity attributable to the Group’s
equity holders.
Equity-settled share-based payment transactions with parties other than employees are measured at the fair value of the goods or services
received, except where that fair value cannot be estimated reliably, in which case they are measured at the fair value of the equity
instruments granted, measured at the date the entity obtains the goods or the counterparty renders the service. For more information see
Note 14 Share capital and share options.
2.14 Current and deferred tax
The tax expense for the period comprises current and deferred tax. Tax is recognized in the income statement, except to the extent that
it relates to items recognized directly in equity. In this case, the tax is also recognized in equity. The current income tax charge is calculated
on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where SeaBird operates and
generates taxable income.
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject
to interpretation. SeaBird establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the consolidated financial statements.
However, the deferred income tax, if it is not accounted for, arises from initial recognition of an asset or liability in a transaction other than
a business combination that at the time of the transaction affects neither accounting, nor taxable profit or loss.
Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet
date and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.
Deferred income tax assets are recognized to the extent that it is probable that future taxable profit will be available against which the
temporary differences can be utilized. Deferred income tax is provided on temporary differences arising on investments in subsidiaries
and associates, except where the timing of the reversal of the temporary difference is controlled by SeaBird and it is probable that the
temporary difference will not reverse in the foreseeable future.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current
tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax
assets and liabilities in a net basis.
2.15 Employee benefits and share based payments
(A) Pension obligations
SeaBird operates various defined contribution plans under which it pays fixed contributions into a separate entity. The Group has no further
payment obligations once the contributions have been paid. The contributions are recognized as employee benefit expense when they
Annual Report 2024 Consolidated Financial Statement 47
are due. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is
available.
(B) Share-based compensation
Equity-settled, share-based compensation plans, under which the Group receives services from employees as consideration for SeaBird
equity instruments (options) is booked as an expense. The total amount to be expensed over the vesting period is determined by reference
to the fair value of the options granted, excluding the impact of any nonmarket vesting conditions (for example, profitability and sales
growth targets).
Nonmarket vesting conditions are included in assumptions about the number of options that are expected to vest. At each balance sheet
date, the entity revises its estimates of the number of options that are expected to vest. It recognizes the impact of the revision of original
estimates, if any, in the income statement, with a corresponding adjustment to equity. The proceeds received net of any directly
attributable transaction costs are credited to share capital (nominal value) and share premium when the options are exercised.
The entity may modify the terms of an existing equity instrument granted in a share-based payment transaction. As a minimum, the services
received are measured at the grant date fair value, unless the instruments do not vest because of a failure to satisfy a non-market vesting
condition that was specified at grant date. This applies irrespective of any modifications to the terms and conditions on which the
instruments were granted (including cancellation or settlement). In addition, the effects of modifications that increase the total fair value
of the share-based payment arrangement, or are otherwise beneficial to the employee, are recognized. A modification that results in a
decrease in the fair value of equity instruments does not result in a reduction in the expense recognized in future periods. When the
modification increases the fair value of the equity instruments granted, the incremental fair value is measured by comparing the fair value
of the instrument immediately before and immediately after the modification. This incremental fair value is then included in the
measurement of the amount recognized for services received. If the modification occurs during the vesting period, the incremental fair
value granted is included in the measurement of the amount recognized for services received over the period from the modification date
until the date when the modified equity instruments vest. The amount based on the grant date fair value of the original equity instruments
continues to be recognized over the remainder of the original vesting period. If the modification occurs after vesting date, the incremental
fair value granted is recognized immediately. If the modification increases the number of equity instruments granted, the fair value of the
additional equity instruments granted, measured at the date of the modification, is included in the measurement of the amount
recognized for services received.
The cancellation or settlement of an equity instrument is accounted for as an acceleration of vesting. The amount that would otherwise
have been recognized for services received over the remainder of the vesting period is, therefore, recognized immediately. If new equity
instruments are granted to an employee in connection with the cancellation of existing equity instruments, and they are identified, on the
date when they are granted, as replacement equity instruments for the cancelled equity instruments, this is accounted for as a
modification of the original equity instruments. The incremental fair value granted is the difference between the fair value of the
replacement equity instruments and the net fair value of the cancelled equity instruments at the date the replacement equity instruments
are granted. The net fair value of the cancelled equity instruments is their fair value, immediately before the cancellation, less the amount
of any payment made to the employee that is accounted for as deduction from equity. If the entity does not identify new equity
instruments granted as replacement equity instruments for those cancelled, the new equity instruments are accounted for as a new grant.
2.16 Provisions
Provisions are recognized when SeaBird has a present legal or constructive obligation as a result of past events, it is probable that an
outflow of resources will be required to settle the obligation and the amount has been reliably estimated.
The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the reporting
date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows
estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value
of money is material), using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the
obligation. The increase in the provision due to passage of time is recognized as interest expense.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable
is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured
reliably.
A restructuring provision is recognized when the Group has developed a detailed formal plan for the restructuring and has raised a valid
expectation in those affected that it will carry out the restructuring by starting to implement the plan or announcing its main features to
those affected by it. The measurement of a restructuring provision includes only the direct expenditures arising from the restructuring,
which are those amounts that are both necessarily entailed by the restructuring and not associated with the ongoing activities of the
entity.
Onerous leases are contracts where the unavoidable costs of meeting the obligations under the contract exceed the economic benefits
expected to be received under it. Provision is made in respect of onerous contracts for the present obligation under the contract. Where
Annual Report 2024 Consolidated Financial Statement 48
there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the
class of obligations as a whole. A provision is recognized even if the likelihood of an outflow with respect to any one item included in the
same class of obligations may be small.
2.17 Revenue recognition
Revenues for contracts with customers arise primarily from services.
Revenue is recognized at the amount that the Group expects to be entitled in exchange for transferring the promised services to the
customer (the ‘transaction price’). The Group includes in the transaction price an amount of variable consideration (for example,
additional consideration related to a “variation order”) only to the extent that it is highly probable that a significant reversal will not occur
when the associated uncertainly is resolved. Revenue is shown net of value-added tax, discounts, and after eliminating sales within the
Group. Revenue is recognized when it is probable that the Group will collect the consideration to which it will be entitled and when
specific criteria have been met under the contract. In evaluating whether collectability is probable, the Group considers only the
customer’s ability and intention to pay.
Estimates of revenues, costs or extent of progress toward completion are revised if circumstances change. Any resulting increases of
decreases in estimates are reflected in the profit or loss in the period in which the circumstances become known to the management.
The principles applied for each of the main types of contracts with customers are described in more detail below:
Identification of performance obligations
The Group assesses whether a contract contains one or more performance obligations (that is, distinct promises to provide a service) and
allocates the transaction price to each performance obligation on the basis of its standalone selling price. The service contracts (that do
not include data processing service) are generally considered to have a single performance obligation. The service related to seismic
data processing, which is occasionally agreed in contracts with customers, is typically considered to be a separate performance
obligation.
Timing of revenue recognition in service contracts
Revenue from service contracts is recognized over time as the services are performed and the Group is entitled to the compensation
under the contract for the work performed. The performance obligation is considered to be satisfied over time because the Group
performs the service at the customer specification, the resulting data is owned by the customer the Group is entitled to payment at any
given point in time for the portion of work performed and the Group has no alternative right to otherwise use or benefit from the resultant
data. Revenue is recognized based on the actual service provided to the end of the reporting period as a proportion of the total services
to be provided. The percentage of completion is measured with reference to the actual cost (cost per day multiplied by days lapsed) to
total expected costs (cost per day multiplied by expected project days).
Timing of revenue recognition in bareboat contracts
Revenue from bareboat contracts is recognized in accordance with the lessor accounting policies. Typically, bareboat contracts are
classified as operating leases and hire income is recognized on a straight-line basis over the term of the relevant lease.
Financing component
The Group typically does not have any contracts where the period between the delivery of the service and payment by the customer
exceeds one year. Consequently, the Group elects to use the practical expedient and does not adjust any of the transaction prices for
the time value of money.
Contract assets and contract liabilities
In case the services rendered by the Group as of the reporting date exceed the payments made by the customer as of that date and
the Group does not have the unconditional right to charge the client for the services rendered (that is, the Group has earned ‘unbilled
revenue’), a contract asset is recognized. The Group assesses a contract asset for impairment in accordance with IFRS 9 using the
simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from initial recognition of the contract
asset. An impairment of a contract asset is measured, presented and disclosed on the same basis as a financial asset that is within the
scope of IFRS 9 (see Note 2.10.3 Financial assets: impairment and credit loss allowance for ECL).
If the payments made by a customer exceed the services rendered under the relevant contract, a contract liability is recognized. The
Group recognizes any unconditional rights to consideration separately from contract assets as a trade receivable because only the
passage of time is required before the payment is due.
Costs to obtain or fulfil contracts with customers
Annual Report 2024 Consolidated Financial Statement 49
The Group can recognize the incremental costs incurred by the Group to obtain contracts with customers and the costs incurred in fulfilling
contracts with customers that are directly associated with the contract as an asset, if such costs meet the following recognition criteria:
- Incremental costs of obtaining contracts are those costs that the Group incurs to obtain a contract with customer that would not
have been incurred if the contract had not been obtained.
- Costs to fulfil a contract are those that (a) relate directly to the contract, (b) generate or enhance resources of the Group that will
be used in satisfying performance obligations, and (c) the costs are expected to be recovered.
The Group accounts for the mobilization costs incurred to transfer the vessel to the intended contract area as “costs to fulfil a contract” if
they meet the above criteria and recognizes the costs as an asset on the balance sheet, classified within “other current assets”. The asset
is amortized on a straight-line basis over the term of the specific contract it relates to, consistent with the pattern of recognition of the
associated revenue and recognized in “cost of sales” in the profit or loss. Additionally, the asset is assessed for impairment under the
expected credit loss provisions and any impairment loss is recognized in “cost of sales” in profit or loss.
The Group recognizes the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset
that the Group otherwise would have recognized is one year or less.
Interest income
Interest income is recognized using the effective interest method.
2.18 Dividend distribution
Dividend distribution to the Group’s shareholders is recognized as a liability in SeaBird’s financial statements in the period in which the
dividends are approved by the Board of Directors.
2.19 Comparatives
Where necessary, comparative figures have been adjusted to conform to changes in presentation in the current year.
2.20 Contingent assets and liabilities
Contingent assets are not recognized in the financial statements but are disclosed in the notes to the financial statements where an inflow
of economic benefits is probable. Contingent liabilities are defined as:
- possible obligations resulting from past events, and whose existence will be confirmed only by the occurrence or non‑occurrence of
one or more uncertain future events not wholly within the control of the entity; and
- a present obligation that arises from past events but is not recognized because:
(i) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation;
or
(ii) the amount of the obligation cannot be measured with sufficient reliability.
2.21 Contract costs
Costs incurred relating to future performance obligations are deferred and recognized as assets in the consolidated statement of financial
position.
The nature of the asset is incremental costs of obtaining a contract that would not have incurred if the contract had not been obtained
and will be recovered by the revenue over the contract period.
Costs related to contracts and future performance obligation longer than 12 months are classified and presented as other non-current
assets. All other costs for future performance are presented as other current assets.
Contract costs incurred will be expensed and presented as Operational expenses (cost of sales) in line with the satisfaction of the
performance obligation.
2.22 Costs to fulfil a contract
If the costs incurred in fulfilling a contract with a customer are not within the scope of another Standard the company recognizes an asset
from the costs incurred to fulfil a contract if those costs meet all of the following criteria:
(a) the costs relate directly to a contract or to an anticipated contract that the company can specifically identify);
(b) the costs generate or enhance resources of the entity that will be used in satisfying (or in continuing to satisfy) performance obligations
in the future; and
(c) the costs are expected to be recovered
Annual Report 2024 Consolidated Financial Statement 50
Costs related to mobilization of vessels are capitalized under other current assets and amortized over the contract period when the above
criteria are satisfied.
3 Risk factors and financial risk management
3.1 Financial risk factors
SeaBird’s activities are exposed to a variety of financial risks: market risk (including currency risk, interest rate risk and price risk), credit risk
and liquidity risk. The Group’s overall risk management focuses on the unpredictability of financial markets and monitors and controls risks
with a potential significant negative effect for the Group and evaluates to minimize the risks if the cost of doing so is acceptable. The
Group may use derivative financial instruments to hedge certain risk exposures from time to time. This note presents information about the
Group’s exposure to each of the above risks, the Group’s objectives, policies and procedures for measuring and managing risk, and the
Group’s management of capital. Further quantitative disclosures are included in Note 29 Financial instruments. The board of directors has
overall responsibility for the establishment and oversight of the Group’s risk management framework. The audit committee oversees how
management monitors and manages risk and review the adequacy of the risk management framework in relation to the risks faced by
SeaBird.
(A) Market risk
(I) Currency exchange risk
Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. The Group’s
operating cash inflows are derived from its seismic activities, which are mostly priced in U. S. dollar whilst vessels’ costs and crew costs are
also mostly in U.S. dollar, thus creating a natural hedge. Nevertheless, as the Group operates internationally, it undertakes transactions
denominated in foreign currencies, in particular with regards to taxation payments, as well as administrative expenses. Consequently, the
Group is mainly exposed to foreign exchange risk, primarily with respect to Norwegian kroner, Euro and Singapore Dollar. To manage
foreign exchange risk arising from future commercial transactions and recognized assets and liabilities, the Group’s management monitors
the currency rate fluctuations continuously and entities in the Group may use from time-to-time various foreign exchange contracts.
SeaBird did not have any open foreign exchange contracts as at 31 December 2024 and 2023. Quantitative information regarding the
Group’s exposure to foreign exchange risk as at year end is set out in Note 29 Financial instruments.
(II) Interest rate risk
Interest rate risk is the risk that the value of financial instruments will fluctuate due to changes in market interest rates. Variable interest
rates expose the Group to cash flow interest rate risk, while fixed interest rates expose the Group to fair value interest rate risk. The Group’s
income and operating cash flows are substantially independent of changes in market interest rates as the Group has no significant interest
bearing assets. The Group has a loan see Note 17 Interest bearing loans and borrowings. The management monitors the interest rate
fluctuations on a continuous basis and acts accordingly. Quantitative information regarding the Group’s exposure to interest rate risk as
at year end is set out in Note 29 Financial instruments.
(B) Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The maximum
exposure to credit risk at the reporting date to recognized financial assets is the carrying amount net of any provisions for impairment of
the assets, as disclosed in the statement of financial position and notes to the financial statements. The Group does not hold any collateral.
The company sells its services solely to participants in the energy industry, which may increase the Group’s overall exposure to credit risk
as customers may be similarly affected by prolonged industry downturns. SeaBird has policies in place to ensure that sales of services are
made to customers with an appropriate credit history. When contracts are made with counterparties that are considered particularly
risky, the company normally dictates short payment terms and upfront payments in contractual arrangements with the client to properly
mitigate credit risk. Still, the Group faces the risk of non-payment from customers.
Credit risk also arises from cash and cash equivalents, deposits with financial institutions as well as other current assets. SeaBird seeks to
limit the amount of credit exposure to any financial institution and is only investing in liquid securities with counterparties with strong credit
ratings. The Group’s policy is to provide financial guarantees only to wholly-owned subsidiaries or performance guarantees and similar in
the normal course of business.
Note 29 Financial instruments details the Group’s maximum exposure to credit risk and the measurement bases used to determine
expected credit losses.
(C) Liquidity risk
Liquidity risk is the risk that arises when the maturity of assets and liabilities does not match. An unmatched position potentially enhances
profitability but can also increase the risk of losses.
Annual Report 2024 Consolidated Financial Statement 51
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of funding through an
adequate amount of available debt funding and the ability to close out market positions. Due to the cyclical nature of the seismic industry,
SeaBird has been aiming to maintain flexibility in funding by a mixture of debt and equity financing. Quantitative information about the
Group’s exposure to liquidity risk is set out in Note 29 Financial instruments.
(D) Risks related to debt arrangements
SeaBird’s current and future debt arrangements include covenants and undertakings of a general, financial and technical nature and
such debt arrangements may contain cross-default provisions. Failure by the Group to meet any of the covenants, undertakings and/or
a failure to repay debt instalments falling due could result in all outstanding amounts under the different debt arrangements becoming
immediately due for payment, which could potentially have a material adverse effect on the Group’s financial position and the value of
the shares and the Group’s operations and results. Please see Note 17 Interest bearing loans and borrowings for more information.
(E) Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as going concern while maximizing the return
to shareholders through the optimization of the debt and equity balance. The Group’s overall strategy remains unchanged from prior
year. The capital structure of the Group consists of net debt (borrowings – disclosed in Note 17 Interest bearing loans and borrowings –
after deducting cash and bank balances – disclosed in Note 13 Cash and bank balances) and equity of the Group (comprising issued
capital, reserves and retained earnings). The Group is subject to capital requirements, see Note 17 Interest bearing loans and borrowings
where the loan covenants are described.
3.2 Other risk factors
SeaBird is subject to various other risk factors. The risks described below are not exhaustive as additional risks not presently known to SeaBird
or which SeaBird currently deems immaterial may also impair the Group’s business operations. If any of the following risks actually
materialize, SeaBird’s business, financial position and operating results could be materially and adversely affected.
SeaBird is exposed to the economic cycle, as changes in the general economic situation could affect demand for SeaBird’s services.
Demand for offshore geophysical services depends on the level of capital spending by oil and gas companies. Capital expenditures, and
in particular exploration and development expenditures, by oil and gas companies can be negatively affected by a number of factors
including, but not limited to, decreases in oil and gas prices, fluctuations in production levels and disappointing exploration results.
Low oil prices typically lead to a reduction in capital expenditures as these companies scale down their investment budgets. Sustained
periods of substantially reduced capital expenditures by these companies may reduce the demand for the SeaBird’s products and
services. Furthermore, recoveries in oil and gas prices do not immediately increase exploration, development and production spending,
so improving demand for SeaBird’s services will generally lag oil and gas price increases. SeaBird’s operating income/loss and operating
results can vary from month to month. Its operating income is difficult to forecast due to changes in oil companies’ exploration and
production (E&P) budgets and expenditures, the competitive environment, efficiency in operations, adverse weather conditions and
other general economic, changes in input costs and changes market conditions.
SeaBird is also exposed to commodity (bunker fuel) price risk on some contracts. As SeaBird in general has a fairly short order backlog for
contracts where SeaBird is carrying the risk of bunker fuel prices, this risk has not historically been mitigated by forward commodity
contracts. Changes in oil prices and exploration and production budgets could materially affect the business and operating results.
Unanticipated difficulties in pursuing SeaBird’s business strategy could have a material adverse effect on the Group’s business, operating
results, or financial condition. The market for SeaBird’s products and services is competitive. SeaBird faces competition from other
companies within the seismic industry. Generally, overcapacity in the seismic market would have a negative effect on the operating
results of the Group, and the possible failure of SeaBird to maintain competitive offering of equipment and services could have a material
adverse effect on its business, operating results or financial condition.
SeaBird has a strategy of contracting its vessels both towards the long-term market as well as the more volatile spot market. There can be
no guarantee that SeaBird will be able to secure contracts at such rates and utilization rates that are needed. In addition, SeaBird may
experience significant off-hires between charters. Furthermore, disputes under the charter parties may occur, which can result in
responsibility and losses for the Group. Operations in international markets are subject to risks inherent in international business activities,
including, in particular, general economic conditions in each such country, overlapping differing tax structures, managing an organization
spread over various jurisdictions, unexpected changes in regulatory requirements, complying with a variety of foreign laws and
regulations. SeaBird’s business depends on contracts with customers regarding collection and sale/licensing of geophysical data.
Each contract normally involves a substantial value or consideration to the Group. Furthermore, some of the contracts are governed by
the laws of the operations’ areas, which may create both legal and practical difficulties in case of a dispute or conflict. SeaBird also
operates in regions where the ability to protect contractual and other legal rights may be limited compared to regions with more well-
established markets.
Annual Report 2024 Consolidated Financial Statement 52
There will always be operational risks involved in performing offshore seismic surveys. This includes among others unexpected failure or
damage to vessels and technical equipment, work accidents or adverse weather conditions. These risks can cause personal injury,
prevent surveys to be performed as scheduled, other business interruptions, property and equipment damage, pollution and
environmental damage. SeaBird may be subject to claims as a result of these hazards. SeaBird seeks to prevent loss or damages from
such incidents by insurance, contractual regulations and emergency routines. However, there will always be some exposure to technical
and operational risks, with unforeseen problems leading to unexpectedly high operating costs, substantial losses, additional investments,
etc., which may have a material negative effect on the Group’s operating results and financial position. If for example a vessel is rendered
a total loss, the contract with the customer will be void and SeaBird will under such circumstances lose income that would otherwise come
from operating this vessel. Additionally, the occurrence of any of these risks could damage SeaBird’s reputation.
The parent company along with a number of subsidiaries are subject to taxation in Norway while several other subsidiaries are subject to
taxation in Cyprus. The Group is also subject to taxation in various other jurisdictions because of its global operations. SeaBird faces the
risk that its tax filings are challenged and may be subject to unexpected claims for unpaid taxes or sanctions as a consequence of breach
of applicable tax legislation.
3.3 Fair value estimation
The fair value of financial instruments traded in active markets (such as listed debt and equity investments) is based on quoted market
prices at the balance sheet date. The quoted market price used for financial assets held by SeaBird is the current bid price.
The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. SeaBird uses a
variety of methods and makes assumptions that are based on market conditions existing at each balance sheet date including quoted
market prices or dealer quotes for similar instruments and discounted cash flows.
The carrying value of financial assets and financial liabilities approximate their fair values.
Details with regards to fair value estimation relevant to other financial instruments are set out in Note 29 Financial instruments.
4 Critical accounting estimates and judgments
The preparation of financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that
affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may
differ from these estimates.
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of
future events that are believed to be reasonable under the circumstances. Revisions to accounting estimates are recognized in the period
in which the estimates are revised and in any future periods affected.
Judgments made by management in the application of IFRSs that have significant effect on the consolidated financial statements and
estimates with a significant risk of material adjustment in the next year are discussed below.
(A) Estimating useful lives, residual value of vessels and equipment
The Group’s estimates of useful lives and plans for depreciation are based on investment considerations and on experience of technical
and economic life of similar assets. Expected useful life and residual values of the vessels can change according to environmental
requirements, wear and tear, corporate strategy, actual usage of the asset, as well as other operational reasons. If the economic life
assigned to the assets proves to be too long, impairment losses or higher depreciation expense could result in future periods, while longer
actual useful life will decrease the depreciation expense in future years. The assets’ residual values and useful lives are reviewed, and
adjusted if appropriate, at least at each year-end.
(B) Estimated impairment of vessels and equipment
The carrying amount of a vessel is reviewed for potential impairment whenever events or changes in circumstances indicate that the
carrying amount may not be fully recoverable. In such instances, an impairment charge would be recognized if the recoverable amount
(higher of value-in-use and fair value) and its eventual disposition is less than the vessel's carrying amount.
When examining internal indicators of impairment, management assesses a number of factors, such as the vessels’ backlog, operating
cash flows, financial plans, and the Group’s business strategy. Management also considers the physical condition when assessing the
earning capacity of an asset. In examining external indicators for impairment, management considers factors such as the economic
cycle and macro-economic fluctuations, global oil price movement, factors affecting governmental exploration plans, as well as other
factors impacting the customers’ capex plans and demand for seismic services.
The recoverable amounts of the vessels are ordinarily determined using value in use calculations. Each vessel, along with the seismic
equipment attached or allocated to the vessel, is considered to be a cash generating unit being tested for impairment. In developing
Annual Report 2024 Consolidated Financial Statement 53
estimates of future cash flows, the Group must make assumptions about future day-rates, utilization rate, operating expenses, capital
investments, residual values and remaining useful life of the vessels. These assumptions are based on historical trends as well as future
expectations. Although management believes that the assumptions used to evaluate potential impairment are reasonable and
appropriate, such assumptions may be highly subjective. Significant and unanticipated changes in these assumptions could result in
impairments in the future periods. To the extent that the future actual revenues achieved prove to be less than forecasted, impairment
losses on vessels and related seismic equipment may result.
Note 7 Property, plant and equipment sets out information about the impairment testing performed in the current year.
(C) Going concern assumption
The assessment of the Company for the appropriateness of the use of the going concern basis is disclosed in Note 2.1 Basis of preparation.
(D) Impairment of financial assets
The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are measured at amortised cost.
The measurement of the loss allowance depends upon the consolidated entity's assessment at the end of each reporting period as to
whether the financial instrument's credit risk has increased significantly since initial recognition, based on reasonable and supportable
information that is available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit loss
allowance is estimated. This represents a portion of the asset's lifetime expected credit losses that is attributable to a default event that is
possible within the next 12 months. Where a financial asset has become credit impaired or where it is determined that credit risk has
increased significantly, the loss allowance is based on the asset's lifetime expected credit losses. The amount of expected credit loss
recognised is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument
discounted at the original effective interest rate.
(E) Provision for liabilities
Provisions are recognised when the consolidated entity has a present (legal or constructive) obligation as a result of a past event, it is
probable the consolidated entity will be required to settle the obligation, and a reliable estimate can be made of the amount of the
obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the
reporting date, taking into account the risks and uncertainties surrounding the obligation. If the time value of money is material, provisions
are discounted using a current pre-tax rate specific to the liability. The increase in the provision resulting from the passage of time is
recognised as a finance cost.
(F) Income tax
The consolidated entity is subject to income taxes in the jurisdictions in which it operates. Significant judgement is required in determining
the provision for income tax. There are many transactions and calculations undertaken during the ordinary course of business for which
the ultimate tax determination is uncertain. The consolidated entity recognises liabilities for anticipated tax issues based on the
consolidated entity's current understanding of the tax law. Where the final tax outcome of these matters is different from the carrying
amounts, such differences will impact the current and deferred tax provisions in the period in which such determination is made.
Deferred tax assets are recognised for deductible temporary differences only if the consolidated entity considers it is probable that future
taxable amounts will be available to utilise those temporary differences and losses.
(G) Impairment of investments in subsidiaries
The Group and Company periodically evaluates the recoverability of investments in subsidiaries, whenever indicators of impairment are
present. Indicators of impairment include such items as declines in revenues, earnings or cash flows or material adverse changes in the
economic or political stability of a particular country, which may indicate that the carrying amount of an asset is not recoverable. If facts
and circumstances indicate that the investment in subsidiaries may be impaired, the estimated future undiscounted cash flows associated
with these entities would be compared to their carrying amounts to determine if a write-down to fair value is necessary.
Annual Report 2024 Consolidated Financial Statement 54
5 Segment information
The company’s seismic services and operations are conducted and monitored within the Group as one business segment.
Primary reporting format – types of revenues
All figures in USD 000's 2024 2023 Contract revenue 35,454 34,635 Total 35,454 34,635
Revenues from the company’s largest customer in 2024 amounted to 100% of the Group’s total annual revenues. In 2023 the largest
customer contributed to 62% of total revenues.
Secondary reporting format – geographical segments
All figures in USD 000's 2024 2023 REVENUE Europe, Middle East & Africa (EMEA) 8 28 North & South America (NSA) 29,932 18,152 Asia Pacific (APAC) 5,514 16,455 Total 35,454 34,635 SEGMENT ASSETS Europe, Middle East & Africa (EMEA) 5,507 4,289 North & South America (NSA) 43,604 26,721 Asia Pacific (APAC) 900 23,013 Total 50,011 54,024 CAPITAL EXPENDITURE Europe, Middle East & Africa (EMEA) - 268 North & South America (NSA) 2,336 530 Asia Pacific (APAC) - 1,947 Total 2,336 2,745
A substantial portion of the property and equipment is mobile due to SeaBird’s world-wide operations. Asset locations at the end of a
period are not necessarily indicative of the geographic distribution of the revenues generated by such assets during the period.
Geographic distribution of assets is based upon location of physical ownership. The geographic distribution of revenues is based upon
location of performance. Capital expenditures are based on the location of the company that is making the investment.
6 Revenue
Revenue split on type of contract
All figures in USD 000's 2024 2023 Time-charter revenue 35,446 34,607 Other revenues 8 28 Total revenues 35,454 34,635
The amount of revenue as presented above represents the revenue net of discounts. An amount of USD 2.6 million has been provided as
a discount to the associate in 2023. No discounts provided in 2024.
Annual Report 2024 Consolidated Financial Statement 55
Time of revenue recognition
All figures in USD 000's 2024 2023 At a point in time - - Over time 35,454 34,635 Total revenues 35,454 34,635
Set out below is the amount of revenue recognized from
All figures in USD 000's 2024 2023 Amounts included in contract liabilities at the beginning of the year 469 1,467 Amounts included in contract liabilities at the end of the year 844 469
7 Property, plant and equipment
The company’s capital expenditures in 2024 was USD 2.3. The total capital expenditures for the vessel in 2023 was USD 2.7 million, where
approximately USD 1.7 million was related to the 5-year special purpose survey of the “Eagle Explorer” and the remaining relates to
ordinary maintenance expenditures.
Dry-dock All figures in USD 000's Vessels and costs and Office equipment equipment equipment Total Opening net book amount as of 1 January, 2023 36,868 6,060 53 42,982 Additions 2,150 595 - 2,745 Depreciation -4,287 -1,933 -53 -6,274 Net book amount as of 31 December 2023 34,731 4,722 - 39,453 Cost 51,124 9,603 159 60,886 Accumulated depreciation and impairment -16,392 -4,881 -159 -21,433 Net book amount as of 31 December 2023 34,731 4,722 - 39,453 Opening net book amount as of 1 January, 2024 34,731 4,722 - 39,453 Additions 2,209 127 - 2,336 Depreciation -4,813 -1,492 - -6,305 Net book amount as of 31 December 2024 32,127 3,357 - 35,483 Cost 51,783 9,730 - 61,513 Accumulated depreciation and impairment -19,656 -6,373 - -26,029 Net book amount as of 31 December 2024 32,127 3,357 - 35,483
Within the period fully depreciated assets with a total cost of USD 1.55 million have been derecognised.
Impairment assessment
The Group performed impairment reviews and determined the value in use of its fleet based on discounted estimated future cash flows
carried out in accordance with the Group's policy described in Note 2.8 Impairment of non-financial assets. The assessment has not
resulted in any impairment loss.
Annual Report 2024 Consolidated Financial Statement 56
The Group’s value in use model includes estimates of the expected future cash flows for each vessel along with the immovable and
allocated movable seismic equipment. Cash flows are based on future day-rates, utilization rate, operating expenses, capital investments,
residual values and remaining useful life of the assets. These cash flows are discounted at the Group’s weighted average cost of capital
(WACC) of 12.22% to estimate the present value, which is compared to book value at the date of the assessment. The impairment review
is performed on the following vessels:
Asset Valuation approach Eagle Explorer Value in use Fulmar Explorer Value in use
The main assumptions used in the calculation of the value in use of the Group’s vessels are:
- Future day-rates are based on current contracts. The rates are increased by 2% per year
- Utilization rate is based on awarded and probable projects expected to materialize. Utilization beyond is based on the historic
average utilization of the industry
- Operating and capital expenditure is based on historic averages, increased by 2% per year
- Life-time of the vessel
WACC is calculated using a standard WACC model in which cost of equity, cost of debt and capital structure are the key parameters.
WACC has been set at 12.22% (2023: 12.20%). The WACC is estimated on a post-tax basis to be in line with the post-tax cash flows used in
the model.
The calculation of value in use is sensitive to changes in the key assumptions, which are considered to be the day-rates, utilization rates,
daily OPEX, life-time and the discount rate. Management has performed a sensitivity analysis on these assumptions in order to assess the
impact on the recoverable amounts had the key assumptions been changed in the negative direction, all other things being equal.
The following apply to Fulmar Explorer:
- A decrease in day-rates by 10% over the remaining useful life of the vessels would not induce impairment loss.
- A decrease in utilization rates by 10%-points over the remaining useful life of the vessels would result in an impairment loss of USD
1.6 million.
- An increase in operating expenses by 10% over the remaining useful life would not induce impairment loss.
- An increase in the WACC by 5%-points (41% increase) would not induce impairment loss.
- A decrease in lifetime by 5 years would not induce impairment loss.
The following apply to Eagle Explorer:
- A decrease in day-rates by 10% over the remaining useful life of the vessels would not induce impairment loss.
- A decrease in utilization rates by 10%-points over the remaining useful life of the vessels would not induce impairment loss.
- An increase in operating expenses by 10% over the remaining useful life would not induce impairment loss.
- An increase in the WACC by 5%-points (41% increase) would not induce impairment loss.
- A decrease in lifetime by 5 years would not induce impairment loss.
Given the inherent imprecision and corresponding importance of the key assumptions used in the impairment tests, it is possible that
changes in the future conditions may lead management to use different key assumptions, which could require a material change in the
carrying amount of the vessels. The risks associated with the judgments, estimates and assumptions used in this exercise are discussed in
Note 4 Critical accounting estimates and judgments (B).
The impairment assessment on the Group’s fleet is carried out in accordance with the Group's policy described in Note 2.8 Impairment of
non-financial assets to the financial statements.
Mortgages and assets
The Group has a loan and guarantee facilities with Sparebank 1 SMN with a total frame of USD 15.6 million (see note 17 Interest bearing
loans and borrowings). The facilities are secured with 1
st
priority mortgages over the vessels, assignment of the vessel’s earnings, insurances,
trade receivables, bank accounts, inventories of the companies within the Group and pledge of shares in certain subsidiaries of the
Group.
Other payables amounted to USD 0.6 million as of 31 December 2024 are secured by 2nd priority mortgages on the vessels.
Annual Report 2024 Consolidated Financial Statement 57
8 Income tax expense
SeaBird Exploration Plc is subject to taxation in Norway which impose corporation tax at the rate of 22% and the majority of its subsidiaries
in Cyprus. The Group is also subject to taxation in various other jurisdictions because of its global operations. The Group continues to
evaluate its historical tax exposures which might change the reported tax expense.
All figures in USD 000's 2024 2023 Current period 70 199 Adjustment for prior periods 120 73 Total current tax 190 272 All figures in USD 000's 2024 2023 Continuing operations profit/(loss) before income tax 4,888 3,399 Tax calculated at domestic tax rates applicable to profits in respective countries (22% for the parent Company)– current year 70 199 Tax calculated at domestic tax rates applicable to profits in respective countries (22% for the parent Company)– prior years 120 73 Total tax expense/(reversal) attributable to continuing operations 190 272 All figures in USD 000's 2024 2023 Attributable to continued operations 190 272 Attributable to discontinued operations - - All figures in USD 000's 2024 2023 Long term tax payables - - Current portion of tax liabilities 1,409 1,323 Total tax liabilities 1,409 1,323
Income taxes, penalties, and interest
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in
the countries where SeaBird operates and generates taxable income. SeaBird establishes provisions where appropriate on the basis of
amounts expected to be paid to the tax authorities.
As at 31 December 2024, the Group has unutilized tax losses carried forward within certain Norwegian subsidiaries.
In deciding whether deferred tax assets are to be recognized in connection to unutilized tax losses, management considers the subsidiary’s
history of taxable losses and the probability of generating taxable profits before the unused tax losses expire. Management’s assessment
has concluded that no deferred tax assets should be recognized as at year-end.
9 Multi-client library
The components of the multi-client library are summarized as follows:
All figures in USD 000's 2024 2023 Opening net book amount as of 1 January - 54 Amortization - -54 Other - - Net book amount as of 31 December - -
Annual Report 2024 Consolidated Financial Statement 58
10 Trade receivables
Trade receivables
All figures in USD 000's 2024 2023 Trade receivables gross 10,014 11,704 Less allowance for expected credit losses -3,302 -2,062 Trade receivables – net 6,712 9,642
The loss recognized within the period of USD 1.2 million as shown in the below table, relates to receivables from the associate company
provided for the current Period (Note 18 Subsidiaries and associates within the Group and Note 28 Related-party transactions).
The average credit period on sales of goods is 30 days. None of the trade receivables that have been written off is subject to enforcement
activities.
Allowance for ECL and write offs, net of reversals
The movement in allowance of expected credit losses that has been recognized for trade receivables and other assets, as well as the
methodology under which the allowance has been estimated, are presented in Note 3.1 Financial risk factors.
All figures in USD 000's 2024 2023 Loss on trade receivables 1,240 2,062 Loss on other receivables 438 - Allowance for ECL and write offs, net of reversals 1,678 2,062
11 Other current assets
Other current assets overview
All figures in USD 000's 2024 2023 Prepaid expenses and deposits 279 165 Contract costs 827 95 Other current assets 2,075 998 Total other current assets 3,181 1,258
The contract costs relate to preparation and mobilization of the vessel and equipment to the intended contract area, capitalized as
“costs to fulfil a contract” under the Group’s accounting policy described in Note 2.17 Revenue recognition and Note 2.22 Costs to fulfil
a contract.
The contract costs at 31 December 2024 will be fully amortized within Q2 2025. The total amount of contract costs recognized as at 31
December 2023 have been amortized in the profit or loss in the financial year 2024. No impairments have been recognized in the year in
respect of contract costs assets.
12 Inventories
The company recognized USD 2.0 million in fuel and lube oil consumption as expenses in 2024 (2023: USD 1.2 million).
All figures in USD 000's 2024 2023 Marine gas oil - 726 Lube oil 378 399 Total inventories 378 1,125
Annual Report 2024 Consolidated Financial Statement 59
13 Cash and bank balances
The restricted cash is held in blocked bank accounts related to payroll tax, employees’ prepaid taxes and rent deposits.
All figures in USD 000's 2024 2023 Restricted cash 67 42 Cash and cash equivalents 4,060 2,176 Cash and bank balances 4,127 2,218
14 Share capital and share options
Number of authorized shares
2024 2023 Number of ordinary shares 91,000,000 91,000,000 Nominal value per share EUR 0.17 EUR 0.17
Share Capital
The issued share capital was EUR 13,681 thousand and share premium fund was EUR 4,243 thousand as of 31 December 2024.
All figures in USD 000's 2024 2023 Share capital 16,036 16,036 Share premium 5,022 20,908 Paid in capital 21,058 36,944
The Group completed two cash distributions to its shareholders during 2024 in the form of repayment of paid in capital; to facilitate this
the Group reduced the share premium fund by USD 12.2 million for the purpose of writing down losses. On 24 June 2024 the parent
company completed a NOK 0.25 repayment of paid in capital (NOK 20.1 million or USD 1.9 million on the date of payment) and on 8
November 2024 the parent company completed a NOK 0.25 repayment of paid in capital (NOK 20.1 million or USD 1.8 million on the date
of payment). The shareholders of the Group on 19 December 2024 approved a NOK 0.4 per share distribution of paid in capital, which
has been approved by Cyprus courts on 5 February 2025 and repaid to shareholders on 17 February 2025 (NOK 32.2 million or USD 2.9
million on the date of payment).
Number of shares issued
2024 2023 Total number of shares issued at 1 January 80,476,271 80,476,265 Reclassification - 6 Total number of shares as per 31 December 80,476,271 80,476,271
In March 2023 the Company reallocated 6 shares that has been held outside the Norwegian VPS in relation with the reallocation of the
shareholder register from Cyprus to Norway. The shares were registered with a premium price of nil and increased its share capital by EUR
1.
There are no share classes and no voting restrictions on the shares.
Employee Share Option Plans
The employee share option program consists of 1.2 million warrants and options as of 31 December 2024. The options will vest over period
of three years from the grant date, while the Warrants will vest over a period of two years. One third of the options granted will vest one
year after grant date, one third of the options granted will vest two years after grant date and one third of the options granted will vest
three years after grant date; similar, the warrants will be distributed over two periods. All options and warrants are exercisable at any time
within one year from the corresponding vested dates. The options and the warrants have an average exercise price of NOK 5.86.
Annual Report 2024 Consolidated Financial Statement 60
Estimated value of the share options granted, reduced for services not rendered, as at 31 December 2024, is presented in equity as share
options granted.
2024 2023 Total number of options at 1 January 2,320,000 3,140,000 Exercised in year -346,667 - Expired in year -820,000 -820,000 Total number of options at 31 December 1,153,333 2,320,000 of which is vested 806,667 1,166,667 of which is non-vested 346,667 1,153,333 Total options 1,153,333 2,320,000
During the period, 346,667 vested options were paid out in cash on the Company’s discretion.
The total value of share options granted is calculated using the Black-Scholes model, assuming that all the options will be exercised. The
fair value determined at the grant date is expensed over the vesting period of the options for the options granted less expected number
of forfeited options. The calculation is based on:
- Trailing 252 days logarithmic return volatility
- Given exercise price for the given option trance the given year at grant date
- Time to maturity for the given option tranches
- Assume no dividends
- A risk-free interest rate
15 Trade and other payables
Contract liability is income earned before contract start-up and accrued over the contract period. The accrued amount at 31 December
2024 was related to one contract starting up in mid-2024 and is expected to be completed in mid-2025.
The Group has a credit line with Glander International Bunkering, this vendor credit is secured with second priority mortgages over the
vessels.
All figures in USD 000's 2024 2023 Trade payables 2,122 3,821 Contract liability 844 469 Accrued vessel and office costs 1,002 1,826 Payroll related liabilities 969 1,126 VAT and other payables 82 172 Total trade and other payables 5,019 7,414
16 Provisions and other liabilities
Provisions and other liabilities
All figures in USD 000's 2024 2023 Legal provision - 488 Other liabilities related arbitration awards 624 1,761 Total Provisions and other liabilities 624 2,249
Annual Report 2024 Consolidated Financial Statement 61
Changes in provisions and other liabilities
All figures in USD 000's 2024 2023 Opening book amount as of 1 January 2,249 331 Additional provision in the year - 1,430 Reclassification - 488 Discontinued provisions -1,625 - Closing book amount as of 31 December 624 2,249
Total provision and other liabilities have been reduced by USD 1.6 million in the current period as the provisions relate to a wholly owned
subsidiary that is under voluntary liquidation and has been recognised as discontinued operations. Consequently, its liabilities and
provisions have been deconsolidated.
17 Interest bearing loans and borrowings
Sparebank 1 SMN term loan and guarantee facility
The Group has a bank facility of USD 14.2m. The effective loan interest was approximately 12.0% in 2024 (2023: 12.3%). The loan facility
carries quarter instalments of USD 0.71 million and has a maturity date on 30 of June 2026. The new facility includes also a guarantee of
USD 1.4 million which matures on 05 of July 2026. The loan is recognized in the books at amortised cost. The facilities are secured with 1
st
priority mortgages over the vessels, assignment of the vessel’s earnings, insurances, trade receivables, bank accounts, inventories of
Companies within the Group and pledge of shares in certain subsidiaries of the Group.
Sparebank 1 SMN main loan financial covenants:
- Minimum free cash: USD 1 million
- Positive working capital excluding current portion of interest bearing debt
- Minimum equity ratio 45 %
The Group was in compliance with all the financial and non-financial bank loan covenants throughout the year and as of 31 December
2024.
All figures in USD 000's 2024 2023 Sparebank 1 SMN Non-current 7,775 10,543 Current 2,970 3,061 Other Non-current 2,430 2,572 Current 283 58 Total 13,458 16,234
All figures in USD 000's 2024 2023 Opening book amount as of 1 January 16,234 16,287 Receipts from borrowings - 14,200 Conversion of borrowing - 2,340 Interest on loans and borrowings 1,774 2,400 Repayment of borrowings -2,840 -16,997 Interest paid -1,782 -1,996 (Capitalization) / Amortization of debt issue cost 72 - Closing book amount as of 31 December 13,458 16,234
Annual Report 2024 Consolidated Financial Statement 62
An amount of USD 2.3m which was included in other payables as at 31 December 2022, was converted into a loan during 2023. The loan
carries a minimum quarterly instalment of USD 50,000 and there is no specified maturity date.
18 Subsidiaries and associates within the Group
Shareholding and voting Country of Company Owner rights incorporation 2024 2023 Aquila Explorer Inc.* Seabird Exploration PLC Panama - 100% Biliria Marine Company Limited** Seabird Exploration PLC Cyprus 100% 100% GeoBird Management AS Seabird Exploration PLC Norway 100% 100% Green Energy Group AS* Seabird Exploration PLC Norway - 100% Harrier Navigation Company Limited Seabird Exploration PLC Cyprus 100% 100% Hawk Navigation Company Limited** Seabird Exploration PLC Cyprus 100% 100% Munin Navigation Company Limited** Seabird Exploration PLC Cyprus 100% 100% Oreo Navigation Company Limited** Seabird Exploration PLC Cyprus 100% 100% Raven Navigation Company Limited** Seabird Exploration PLC Cyprus 100% 100% Sana Navigation Company Limited Seabird Exploration PLC Cyprus 100% 100% Seabed Navigation Company Limited Seabird Exploration PLC Cyprus 100% 100% SeaBird Crewing Mexico S. DE R.L. DE C.V. Seabird Exploration Norway AS Mexico 100% 100% SeaBird Exploration Americas Inc. Seabird Exploration PLC USA 100% 100% SeaBird Exploration Asia Pacific PTE. Ltd.** Seabird Exploration PLC Singapore 100% 100% SeaBird Exploration Crewing Limited Seabird Exploration PLC Cyprus 100% 100% SeaBird Exploration Cyprus Limited Seabird Exploration PLC Cyprus 100% 100% SeaBird Exploration Finance Limited Seabird Exploration PLC Cyprus 100% 100% SeaBird Exploration FZ-LLC Seabird Exploration PLC UAE 100% 100% SeaBird Exploration Multi-Client Limited Seabird Exploration PLC Cyprus 100% 100% SeaBird Exploration Nigeria Ltd. Seabird Exploration Norway AS Nigeria 100% 100% SeaBird Exploration Norway AS Seabird Exploration PLC Norway 100% 100% SeaBird Exploration Private Limited*** Seabird Exploration PLC India 26% 26% SeaBird Exploration Shipping AS Seabird Exploration PLC Norway 100% 100% SeaBird Exploration Vessels Limited Seabird Exploration PLC Cyprus 100% 100% SeaBird Seismic Mexico S. DE R.L. DE C.V. Seabird Exploration Norway AS Mexico 100% 100% Susco AS* Seabird Exploration PLC Norway - 100%
*) Aquila Explorer Inc. was dissolved on 25 June 2024, and Green Energy Group AS and Susco AS were dissolved on 7 March 2024.
**) Biliria Marine Company Limited, Hawk Navigation Company Limited, Munin Navigation Company Limited, Oreo Navigation Company
Limited, Raven Navigation Company Limited and Seabird Exploration Asia PTE filed for voluntary liquidation.
***) Seabird Exploration Private Limited is recognised using the equity accounting principle. For further information, please refer to Note
2.6 Interests in associates.
The company has recognized the following balances for its investment in other companies:
All figures in USD 000's 2024 2023 Associates - 65 Financial assets at fair value through profit or loss 130 262 Total other financial items, net 130 327
Annual Report 2024 Consolidated Financial Statement 63
Financial assets at fair value through profit or loss represent the shareholding in Green Minerals AS. Green Minerals AS was distributed to
shareholders on 25 January 2023, the remaining 446,801 (approximately 3% of the outstanding shares) shares is booked at fair value
through the profit and loss.
Equity accounted investees:
All figures in USD 000's 2024 2023 Opening book amount as of 1 January 65 224 Dividends received -45 -119 Share of profit / (loss) included in net financials -16 -26 Impairments -4 -14 Currency translation differences - - Closing book amount as of 31 December - 65
Associated company:
Year ended 31 December All figures in USD 000's 2024 2023 Current assets 1,221 2,047 Current liabilities -1,225 -1,795 Net assets -4 252 Share of net asset/(liabilities) -1 65 Income 24 17,324 Expenses -87 -17,423 Total comprehensive income -63 -99 Share of profit (loss) -16 -26
Net income, asset and liabilities in discontinued operations
Biliria Marine Company Limited, Hawk Navigation Company Limited, Munin Navigation Company Limited, Oreo Navigation Company
Limited, Raven Navigation Company Limited and SeaBird Exploration Asia Pacific PTE. Ltd are recognised as companies under
discontinued operations.
Year ended 31 December All figures in USD 000's 2024 2023 Current assets attributable to group companies 103 - Other current assets 15 - Non-current assets - - Total assets 118 - Current liabilities attributable to group companies 4,665 - Other current liabilities 1,547 - Non-current Liability - - Total liabilities 6,212 - Total Equity -6,094 -
Annual Report 2024 Consolidated Financial Statement 64
Year ended 31 December All figures in USD 000's 2024 2023 Revenue - - Expenses -63 - Net income -63 -
Recognition of net income, asset and liabilities of discontinued operations
Year ended 31 December All figures in USD 000's 2024 2023 Net income from discontinued operations 1,494 - Total assets attributable to discontinued operations - - Total Liabilities attributable to discontinued operations 103 - Net assets / (liability) -103 -
The amount of USD 1,494 represents the gain arising from the derecognition of the assets and liabilities of former subsidiaries from the
Consolidated statement of financial position, due to loss of control. The amount of USD 103 represents the amount due to the discontinued
operations, i.e. the companies under liquidation.
19 Other financial items, net
All figures in USD 000's 2024 2023 Foreign exchange gain 250 367 Foreign exchange loss -243 -599 Other financial income 40 3,995 Other financial expense -358 -224 Total other financial items, net -311 3,539
Other financial income in the prior year period represents the Group’s profit from distributing the Group’s majority shareholdings in Green
Minerals AS to its shareholders (USD 3.7 million) and the fair value gain through the profit and loss for the remaining shares held (USD 0.3
million). The distribution was completed on 25 January 2023.
20 Other income (expenses), net
All figures in USD 000's 2024 2023 Net client reimbursements 153 189 Meals and accommodation 463 523 Loss on trade receivables -1,240 -2,062 Loss on other receivables -438 - Other income (expense) 39 -1,589 Total other income (expense) -1,023 -2,939
Loss on trade receivables and other receivables relates to movement in allowance of expected credit losses. Please see Note10 Trade
receivables for more information on the loss on trade receivables.
Annual Report 2024 Consolidated Financial Statement 65
21 Expenses by nature
Cost of sales
All figures in USD 000's 2024 2023 Charter hire - - Seismic and marine expenses 5,077 6,298 Other operating expenses 1,867 2,599Crew and crew related costs 10,012 10,165 Total charter hire and operating expenses 16,956 19,062
Selling, general and administrative expenses
All figures in USD 000's 2024 2023 Staff cost and Directors’ remuneration 1,621 1,200 Legal and professional 1,429 1,678 Travel expenses 202 72 Rent and other office expenses 77 73 Other expenses SG&A 934 946 Selling, general and administrative expenses 4,263 3,969
22 Audit expenses
All figures in USD 000's 2024 2023 Statutory audit 330 334
No non-audit services were provided by the statutory auditors in the years 2024 or 2023.
23 Employee benefit expense
All figures in USD 000's 2024 2023 Crew salaries and benefits 8,213 8,415 Salary cost for staff 1,113 680 Social security cost for staff 207 183 Pension cost for staff 157 186 Directors’ remuneration 121 112 Nomination committee remuneration 11 11 Insurance cost for staff 12 28 Total employee benefit expense 9,833 9,615 Including accrued costs relating to the employee stock option plan 105 -202 Average number of employees and temporary crew contractors 86 76
Annual Report 2024 Consolidated Financial Statement 66
24 Finance expense
All figures in USD 000's 2024 2023 Interest on loans and borrowings 1,774 2,400 Interest on suppliers' balances 69 165 Interest on tax liabilities 174 23 Total finance expense 2,017 2,588
25 Earnings per share
Basic earnings per share are calculated by dividing the profit attributable to equity holders of the company by the weighted average
number of ordinary shares in issue during the year (Note 14 Share capital and share options).
All figures in USD and/or 000's except earnings per share 2024 2023 Number of shares Number of ordinary shares in issue at period end 80,476 80,476 Weighted average number of ordinary shares in issue 80,476 80,476 Profit/(Loss) attributable to equity holders of the company Profit/(Loss) attributable to ordinary shares 6,192 3,127 Profit/(Loss) attributable to ordinary shares for continue operation 4,698 3,127 Profit/(Loss) attributable to ordinary shares for discontinue operation 1,494 - Basic earnings per share From continuing operations 0.06 0.04 From discontinued operations 0.02 - Total basic earnings per share 0.08 0.04
The total outstanding amount of shares in the company was 80,476,271 common shares at 31 December 2024 with a nominal value of
EUR 0.17 per share. There are no share classes. The weighted average number of ordinary shares issued was 80.5 million in 2024 and 2023.
26 Dividends and distributions
No dividend was distributed for the year ended 31 December 2024 (2023: USD nil).
The Group completed two cash distributions to its shareholders during 2024 in the form of repayment of paid in capital. On 24 June 2024
the parent company completed a NOK 0.25 repayment of paid in capital (NOK 20.1 million or USD 1.9 million on the date of payment)
and on 8 November 2024 the parent company completed a NOK 0.25 repayment of paid in capital (NOK 20.1 million or USD 1.8 million
on the date of payment). The shareholders of the Group on 19 December 2024 approved a NOK 0.4 per share distribution of paid in
capital, which has been approved by Cyprus courts on 5 February 2025 and repaid to shareholders on 17 February 2025 (NOK 32.2 million
or USD 2.9 million on the date of payment).
Please see note 31 Subsequent events for more information on shareholder distribution.
27 Commitments and contingencies
During 2020 the Group sold its shares in Osprey Navigation Co. Inc. Operating activities in this company ceased in 2020 with the sale of
Osprey Explorer for demolition. The sale of the shares generated a non-cash profit of USD 3.0 million as an old balance sheet item previously
recorded as a tax liability in Seabird accounts remained in Osprey Navigation Co. Inc upon the sale and therefore was de-recognized in
the Seabird consolidated financial statements. Although unlikely, it cannot be ruled out that the creditor may seek to recover the
Annual Report 2024 Consolidated Financial Statement 67
remaining balance from other Group companies, including the parent company SeaBird Exploration Plc. However, to date there is no
indication that this will be the case. In this respect it should also be considered that additional tax exposure may incur related to VAT,
currency risk and delayed interest charges, which may increase a future potential liability.
28 Related-party transactions
Key management and board compensation
Key management is defined as Finn Atle Hamre (CEO) and Sveinung Alvestad (CFO).
Board includes Ståle Rodahl (Chairman), Øivind Dahl-Stamnes, Hans Christian Anderson, Sverre Strandenes and Odd Sondre Svalastog
Helsing.
All figures in USD 000's 2024 2023 Management salaries and other short-term employee benefits 612 512 Post-employment benefits 34 29 Board remuneration 121 112 Nomination committee remuneration 11 11 Consulting agreements (board members) 54 176 Total key management and board compensation 832 840
Loans from related parties
No loans were granted within the year nor outstanding as at 31 December 2024.
Loans to related parties
The Company has no loans to related parties.
Balances and transactions with related parties
As of 31 December 2024, the Group has recorded USD 1.2 million (2023: USD 1.8 million) in trade receivables from the associate company,
which has been fully provided for within the period under review (2023: nil). The net total revenue recognised by the Group of the
associated company for the year 2024 was nil (2023: USD 7.4 million).
Commitments and contingencies to related parties
The Group has neither commitments nor contingencies to related parties.
Shareholding
Management and the board of directors, as of 31 December 2024 held the following shares on own account:
Ordinary Outstanding Name Title % ownership shares options* Ståle Rodahl Chairman 3,255,775 4.05% 120,000 Board Hans Christian Anderson Member - - - Board Odd Sondre Svalastog Helsing Member 1,208,333 1.50% - Board Øivind Dahl-Stamnes Member 80,000 0.09% - Board Sverre Strandenes Member - - - Finn Atle Hamre CEO 15,125 0.02% 453,333 Sveinung Alvestad CFO 44,843 0.06% 366,667
Annual Report 2024 Consolidated Financial Statement 68
*Please see Note 14 Share capital and share options for further information of the company's share option program.
On 24 February 2023, Mr Sondre Helsing, Board member, has through his wholly owned company Hubris Industrier AS today purchased
325,000 shares in Seabird Exploration Plc at a price of NOK 4.54 per share. Following this transaction Mr Helsing owns 1,208,333 shares in
the Company.
On 9 October 2023, Mr Øivind Dahl-Stamnes, Board member, has transferred 20,000 shares from his personal account to his wholly owned
company Dorris AS. Mr. Dahl-Stamnes holding in Seabird Exploration Plc remains unchanged at 63,200 shares, representing approximately
0.1% of the outstanding shares.
On 16 November 2023, Mr Øivind Dahl-Stamnes, Board member, has transferred 43,200 shares from his personal account to his wholly
owned company Dorris AS. Mr. Dahl-Stamnes holding in Seabird Exploration Plc remains unchanged at 63,200 shares, representing
approximately 0.1% of the outstanding shares.
On 24 November 2023, Mr Øivind Dahl-Stamnes, Board member, has through his wholly owned company Dorris AS purchased 6,800 shares
in Seabird Exploration Plc at a price of NOK 5.08 per share. Following this transaction Mr Dahl-Stamnes owns 70,000 shares, representing
approximately 0.1% of the outstanding shares in the Company.
On 15 August 2024, Mr Øivind Dahl-Stamnes, Board member, has through his wholly owned company Dorris AS purchased 10,000 shares
in Seabird Exploration Plc at a price of NOK 4.88 per share. Following this transaction Mr Dahl-Stamnes owns 80,000 shares in the Company.
On 11 February 2025, Mr Sondre Helsing, Board member, has through his wholly owned company Hubris Industrier AS purchased 36,373
shares in Seabird Exploration Plc at a price of NOK 6.64 per share. Following this transaction Mr Helsing owns 1,244,706 shares in the
Company.
On 12 February 2025, Mr Sondre Helsing, Board member, has through his wholly owned company Hubris Industrier AS purchased 63,627
shares in Seabird Exploration Plc at a price of NOK 6.42 per share. Following this transaction Mr Helsing owns 1,308,333 shares in the
Company.
Purchase of services from board members
Storfjell AS, a company controlled by Ståle Rodahl (Chairman of the Board of the Company), has invoiced Seabird Exploration Norway
AS USD 0.1 million related to various consultancy work performed. The comparable figure for 2023 was USD 0.2 million.
29 Financial instruments
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group.
The Group has the following types of financial assets that are subject to the expected credit loss model:
- trade receivables
- cash and cash equivalents and restricted bank balances
- other current assets
In general, vessels on time charter are prepaid, while vessels contracted to oil companies usually have payment terms on an average of
approximately 30 days. Interest is charged on outstanding overdue trade receivables.
The Group always measures the loss allowance for trade receivables and other current assets at an amount equal to lifetime expected
credit loss (ECL). The expected credit losses on trade receivables are estimated by carrying out an individual assessment on each
outstanding balance. Management takes into account the counterparty's financial position, past default experience, industry knowledge
and market reputation. Management also considers macroeconomic factors, such as general economic conditions, factors specific to
the oil and seismic industry and an assessment of both the current and the forecast direction of conditions at the reporting date.
There has been no change in the estimation techniques or significant assumptions made during the current reporting period.
The Group writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and there is no
realistic prospect of recovery, e.g. when the debtor has been placed under liquidation or has entered into bankruptcy proceedings.
The collection of receivables is closely monitored by management.
With regards to cash and cash equivalents, the Group measures its expected credit loss by reference to the banks’ external credit ratings
and relevant published default and loss rates, taking into consideration the EUR 100,000 per bank deposit protection guaranteed under
the EU Deposit Guarantee Scheme. The Norwegian Bank’s Guarantee Fund covers deposits up to NOK 2 million per depositor per bank.
Annual Report 2024 Consolidated Financial Statement 69
The Group monitors changes in external credit ratings and default rates and compares these to credit risk at initial recognition. Cash held
at banks with investment grade are assessed as low credit risk and belong to Stage 1. As the Group’s deposits are held in banks with high
credit quality ratings with investment grade, the probability of default is low, and the expected credit loss is minimal. Thus, no loss has been
recognized in the consolidated financial statements.
Group’s maximum exposure to credit risk:
All figures in USD 000's Note 2024 2023 Trade receivables 10 10,014 11,704 Other receivables 11 1,936 998 Restricted cash 13 67 42 Cash and cash equivalents 13 4,060 2,176 Total 16,077 14,920
The ageing of trade receivables at the reporting date was:
All figures in USD 000's Gross Impairment Total Not past due 5,238 - 5,238 Past due 0-30 days 2,217 - 2,217 Past due 31-120 days 416 - 416 More than 120 days 3,834 -2,062 1,772 Total trade receivable as of 31 December 2023 11,704 -2,062 9,642 Not past due 3,440 - 3,440 Past due 0-30 days 3,272 - 3,272 Past due 31-120 days - - - More than 120 days 3,302 -3,302 - Total trade receivable as of 31 December 2024 10,014 -3,302 6,712
The following table details the movement in the allowance for expected credit losses of trade receivables and other current assets:
All figures in USD 000's Note 2024 2023 Opening amount as of 1 January 2,062 3,665 Provision for expected credit losses 1,678 2,062 Write-off - -3,665 Net carrying amount as of 31 December 3,740 2,062
The Group has recognized a loss allowance of 100% against all receivables over 120 days past due because historical experience has
indicated that the receivables are generally not recoverable.
As described in Note 3.1 Financial risk factors (B), the company’s concentration of credit risk is due to the narrow customer base within
the oil & gas industry and the fact that the market participants face common risks connected to the industry’s general economic
conditions.
Annual Report 2024 Consolidated Financial Statement 70
The Group assesses the exposure to credit risk arising from cash at bank. This assessment takes into account, ratings from external credit
rating institutions. Bank deposit held with banks with investment grade rating are considered as low credit risk. The gross varying amount
represents the Group’s maximum exposure to credit risk on these assets.
All figures in USD 000's Ratings 2024 2023 Bank 1 Aa3* 3,259 1,895 Bank 2 BBB-** 836 307 Bank 3 Baa2* 29 1 Bank 4 NA 3 15 Total 4,127 2,218
*) Moods, **) S&P
Liquidity Risk
Ultimate responsibility for risk management rests with the board of directors, which has established an appropriate liquidity risk
management framework for the management of the group’s short-, medium- and long-term funding and liquidity requirements. The
group manages liquidity risk by maintaining sufficient cash and cash equivalents, seeking the availability of equity funding and debt
funding, and by continuously monitoring forecast and actual cash flows.
The tables below summarize the maturity profile of the group’s financial liabilities at year end on contractual undiscounted payments. The
tables have been drawn based on the earliest date on which the Group can be required to pay. The tables include both interest and
principal cash flows. Floating interest rates are applied on the interest-bearing borrowings (refer to Note 17 Interest bearing loans and
borrowings).
On Less Than All figures in USD 000's 1 to 5 Years Total Demand 12 Months Interest-bearing borrowings - 4,921 15,207 20,128 Trade payables - 3,821 - 3,821 Other payables - 3,593 - 3,593 Provisions - 2,249 - 2,249 Total financial liabilities as of 31 December 2023 - 14,584 15,207 29,791 Interest-bearing borrowings - 4,677 11,689 16,366 Trade payables - 2,122 - 2,122 Other payables - 2,897 - 2,897 Provisions - 624 - 624 Total financial liabilities as of 31 December 2024 - 10,320 11,689 22,009
Interest-bearing borrowings includes the interest for the respective periods.
Currency risk
As described in Note 3.1 Financial risk factors (A)(I), the Group undertakes transactions denominated in foreign currencies; consequently,
exposures to exchange rate fluctuations arise. The Group is mainly exposed to fluctuations with respect to Norwegian kroner, Euro and
Singapore Dollar.
Annual Report 2024 Consolidated Financial Statement 71
The carrying amounts of the Group's foreign currency denominated monetary assets and monetary liabilities at the reporting date are
presented in the tables below.
All figures in USD 000's Total NOK EUR SGD Others Assets 1,403 524 74 - 805 Liabilities -3,859 -612 -1,512 -1,297 -439 Net position as of 31 December 2023 -2,457 -88 -1,438 -1,297 366 Sensitivity 10% -246 -9 -144 -130 37 All figures in USD 000's Total NOK EUR SGD Other Assets 2,350 1,340 60 - 950 Liabilities -3,337 -670 -1,897 -78 -691 Net position as of 31 December 2024 -986 670 -1,838 -78 259 Sensitivity 10% -99 67 -184 -8 26
The table also details the Group's sensitivity to a 10% decrease in US dollar against the relevant foreign currencies. A positive number
below indicates an increase in profit. For a 10% weakening of US dollar against the relevant currency, there would be an opposite negative
impact on the profit.
Exchange rates applied during the year:
Average rate Year end USD per : 2024 2023 2024 2023 EUR 1.0824 1.0810 1.0389 1.1050 GBP 1.2788 1.2433 1.2529 1.2715 NOK 0.0931 0.0947 0.0881 0.0983 SGD 0.7488 0.7443 0.7335 0.7573
Interest rate risk
As described in Note 3.1 Financial risk factors (A)(II), the Group's exposure to the risk of changes in market interest rates relates primarily to
the Group's borrowing from Sparebank 1 SMN which is a floating interest loan.
The table below presents the carrying values of its floating-rate financial instrument:
All figures in USD 000's Note 2024 2023 Sparebank 1 SMN - Libor + margin 17 10,745 13,604
Cash equivalents and restricted cash of USD 4.1 million as at 31 December 2024 (2023: USD 2.2 million) are interest bearing assets with
variable rates.
An increase/decrease of 100 basis points in interest rates at during 2024 would have increased/decreased equity and profit or loss by USD
0.1 million (2023: USD 0.1 million).
Fair value measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value is based
on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at
the measurement date; and assumes that the transaction will take place either: in the principal market; or in the absence of a principal
market, in the most advantageous market.
Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that reflects the significance of the
inputs used in making the measurements. Classifications are reviewed at each reporting date and transfers between levels are
determined based on a reassessment of the lowest level of input that is significant to the fair value measurement.
Annual Report 2024 Consolidated Financial Statement 72
The table below analyses financial instruments carried at fair value by valuation method. The different levels have been defined as follows:
• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities
• Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that
is, as prices) or indirectly (that is, derived from prices)
• Level 3: Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs)
Except from the financial assets at fair value through profit or loss, the carrying values of all other financial assets and financial liabilities
approximate their fair values. The Group uses fair value through profit and loss only on listed shares. The fair value is determined by the
quoted price in the market (Level 1). The carrying amount as at 31 December 2024 was USD 130.000 (2023: USD 262.000).
Green Minerals AS was distributed to shareholders on 25 January 2023, the remaining 446,801 (approximately 3% of the outstanding shares)
shares are booked at fair value through the profit and loss. The fair value as at 31 December 2024 was USD 0.1 million (2023: USD 0.3
million).
30 Long-term investments
The group holds a long-term investment which relates to an associated company (Note 18 Subsidiaries and associates within the Group).
31 Subsequent events
On 3 February 2025, the Group Company announced that it has signed a letter of intent (LOI) to combine with premier tender assisted
drilling provider, Energy Drilling Pte Ltd ("Energy Drilling") in a share-for-share acquisition (the "Transaction"). The Transaction will be carried
out by issuing approximately 651 million new SeaBird shares to Energy Drilling shareholders which will represent approximately 88.91% of
the combined entity. The listed company will in conjunction with the transaction change its name, while the seismic and drilling businesses
will continue to operate as Seabird Exploration and Energy Drilling.
On 7 February 2025, the Group Company announced that the approved cash distribution of NOK 0.40 per share will be distributed as a
repayment of paid in capital. The key dates related to the distribution are as follows: Last day including right: 10 February 2025 Ex-date:
11 February 2025 Record date: 12 February 2025 Payment date: 17 February 2025.
On 11 February 2025, Mr Sondre Helsing, Board member, has through his wholly owned company Hubris Industrier AS purchased 36,373
shares in Seabird Exploration Plc at a price of NOK 6.64 per share. Following this transaction Mr Helsing owns 1,244,706 shares in the
Company.
On 12 February 2025, Mr Sondre Helsing, Board member, has through his wholly owned company Hubris Industrier AS purchased 63,627
shares in Seabird Exploration Plc at a price of NOK 6.42 per share. Following this transaction Mr Helsing owns 1,308,333 shares in the
Company.
On 28 March 2025, the company announced that the previously announced (with reference to the stock exchange announcement on
3 February 2025) combination of SeaBird Exploration Plc and Energy Drilling Pte Ltd in a share for share acquisition. The final transaction
agreement has now been signed, and subject to approval at an Extraordinary General Meeting ("EGM") of SeaBird Exploration Plc and
certain other customary closing conditions, the transaction will be completed.
On 25 April 2025 an Extraordinary General Meeting (EGM) was held, at which all the resolutions put forward were adopted by the
shareholders. Amongst other, the transaction between Seabird Exploration Plc and Energy Drilling to form Energy Holdings was approved.
The said transaction is subject to certain customary closing conditions that are expected to be resolved shortly. The minutes are available
on the Company’s webpage.
Annual Report 2024 Consolidated Financial Statement 73
32 Performance measurement definitions
Seabird presents the alternative performance measurements (APM) that are regularly reviewed by management and aim to enhance
the understanding of the Company’s performance. APMs are calculated consistently over time and are based on financial data
presented in accordance with IFRS and other operational data as described in below table.
33 Operating environment
The economic environment in 2024 and over the medium term is subject to a high degree of uncertainty, with the continuation of the war
in Ukraine, Israel-Gaza conflict, rising tensions in US-China relations, high inflation and high interest rates threatening a significant slowdown
in the global economy.
Russia – Ukraine conflict
The conflict between Russia and Ukraine continues to be highly unstable. The tension in the region impacted the Russian and global
economies negatively and resulted to ongoing political tensions and international sanctions against certain Russian companies and
individuals. The sanctions imposed restricted the parties from having access to foreign financial markets, including removing access of
several Russian banks to the international SWIFT system.
The EU, UK and US (amongst others) have also imposed sanctions against the Russian central bank, restricting the access of the Russian
state to foreign currency reserves, and introduced further asset freezes against designated individuals/entities and sectoral sanctions.
Alternative performance measurements Measure Description Reason EBITDA -Operating profit before EBITDA is defined as operating profit before This is a measure for evaluation of operating profitability on depreciation and amortization depreciation and impairment of fixed assets a more variable cost basis as it excludes depreciation and and represents earnings before interest, tax impairment. EBITDA shows operating profitability regardless and depreciation, and is a key financial of capital structure and tax situations. parameter for Seabird. EBIT- Operating profit EBIT represents earnings before interest and EBIT shows operating profitability regardless of capital tax. structure and tax situations. Equity ratio Equity divided by assets at the reporting Measure capital contributed by shareholders to fund the date. Company’s assets. Earnings per share Earnings divided by average number of Measures the Company’s earnings on a per-share basis. shares outstanding. Net interest bearing debt Net interest-bearing debt consists of both Net interest-bearing debt is a measure of the Company’s current and non-current interest-bearing net indebtedness that provides an indicator of the overall liabilities less interest bearing financial statement. It measures the Company’s ability to pay all assets, cash and cash equivalents. interest-bearing liabilities within available interest bearing financial assets, cash and cash equivalents, if all debt matured on the day of the calculation. It is therefore a measurement of the risk related to the Company’s capital structure. Other definitions Measure Description Vessel utilization Utilization is a measure of the Company`s ability to keep vessels in operation and on contract with clients, expressed as a percentage and are based on actual days.
Annual Report 2024 Consolidated Financial Statement 74
The conflict between Ukraine and Russia may have an impact on global Oil & Gas demand and pricing which again may affect the
global market for Marine Seismic services. The Group also uses some crew members of Ukraine and Russian Nationality, these crew
members have been working for the Group for a number of years and have not so far indicated any mistrust or other concerns by working
together. Secondary the Group may encounter difficulties to pay salaries to Russian crew members due sanctions. If such situation arises
the Group will assess the possibility and ultimately change crew to other Nationalities. Currently the Group does not have any ongoing
projects or contracts with Russian or Ukrainian interests.
The situation is still evolving and further sanctions and limitations on business activity of companies operating in the region, as well as
consequences on the Russian economy in general, may arise but the full nature and possible effects of these are unknown.
Israel – Gaza conflict
The Israel-Gaza conflict has escalated on 07 October 2023, with the launch of a major attack by Hamas. There might be a significant
exposure and economic uncertainty for entities with operations, subsidiary entities or investment in the war area. Other entities, which do
not have a direct exposure with the war area might also be indirectly affected by the negative global economy and global trade impact
that arise due to the war.
Management believes that it is neither significantly impacted from the Israel-Gaza nor the Russia-Ukraine conflict, as its operations are not
affected by the situations, therefore are reasonably well positioned to withstand volatility and economic uncertainties that may arise from
the geopolitical and global economic environment. Management will continue to monitor both above described situations closely and
assesses appropriate actions when, and if, needed.
Annual Report 2024 Financial Statement Seabird Exploration PLC 75
Separate Financial Accounts: Seabird Exploration Plc
Statement of income .............................................................................................................................................................................................. 76
Statement of comprehensive income .................................................................................................................................................................. 76
Statement of financial position .............................................................................................................................................................................. 77
Statement of cash flow ........................................................................................................................................................................................... 79
Statement of changes in equity ............................................................................................................................................................................ 80
Notes to the financial statements .......................................................................................................................................................................... 81
1 General information ..................................................................................................................................................................................... 81
2 Material accounting policy information ..................................................................................................................................................... 81
3 Income tax expense ..................................................................................................................................................................................... 82
4 Trade receivables and other current assets ............................................................................................................................................... 82
5 Cash and cash equivalents ......................................................................................................................................................................... 83
6 Share capital and share options ................................................................................................................................................................. 83
7 Trade payables and other payables .......................................................................................................................................................... 84
8 Other income (expenses), net ..................................................................................................................................................................... 84
9 Other financial items, net ............................................................................................................................................................................. 84
10 Expenses by nature....................................................................................................................................................................................... 85
11 Finance income and expenses ................................................................................................................................................................... 85
12 Dividends and distributions .......................................................................................................................................................................... 85
13 Shares in subsidiaries and associates .......................................................................................................................................................... 86
14 Commitments and contingencies .............................................................................................................................................................. 88
15 Related-Party transactions ........................................................................................................................................................................... 89
16 Financial Instruments .................................................................................................................................................................................... 90
17 Audit fees ...................................................................................................................................................................................................... 92
18 Subsequent events ....................................................................................................................................................................................... 92
Annual Report 2024 Financial Statement Seabird Exploration PLC 76
Statement of income
Year ended 31 December
All figures in USD 000's
Note
2024
2023
Revenues
-
-
Cost of sales
-
-4
Selling, general and administrative expenses
10
-1,296
-1,036
Other income (expenses), net
8
3
-2,051
Impairment on group receivables
15
3,918
-15
Write down on group payables
15
4
1,518
Impairment on investments in subsidiaries, net of reversals
13
-1,378
-5,385
Earnings before interest and taxes (EBIT)
1,251
-6,973
Finance expense
11
-905
-2,183
Finance income
11
162
1,434
Share of net income/(loss) of associates
13
-16
-5
Fair value adjustments through profit and loss
13
-132
262
Other financial items, net
9
-125
4,683
Profit/(loss) before income tax
235
-2,782
Income tax
3
-108
-
Profit/(loss) for the period
127
-2,782
Statement of comprehensive income
Year ended 31 December
All figures in USD 000's
Note
2024
2023
Profit/(loss)
127
-2,782
Other comprehensive income
-
-
Total other comprehensive income, net of tax
-
-
Total comprehensive income
127
-2,782
Annual Report 2024 Financial Statement Seabird Exploration PLC 77
Statement of financial position
As of 31 December
All figures in USD 000's
Note
2024
2023
ASSETS
Non-current assets
Investments in subsidiaries
13
31,020
49,869
Financial assets at fair value through profit and loss
13
130
262
Investment in associated companies
13
-
65
Total non-current assets
31,150
50,196
Current assets
Trade receivables and other current assets
4
3
10
Due from related parties
15
5,887
7,544
Restricted cash
5
16
-
Cash and cash equivalents
5
1,573
136
Total current assets
7,479
7,690
TOTAL ASSETS
38,629
57,886
EQUITY
Shareholders' equity
Paid in capital
6
21,058
36,944
Revaluation reserve
12
12
Share options granted
6
258
153
Retained earnings
-548
-12,867
TOTAL EQUITY
20,780
24,242
LIABILITIES
Non-current liabilities
Total non-current liabilities
-
-
Current liabilities
Trade payables and other payables
7
236
218
Due to related parties
15
17,503
33,426
Tax liabilities
7
-
Total current liabilities
17,746
33,644
Liabilities classified as discontinued operation
13
103
-
TOTAL LIABILITIES
17,849
33,644
TOTAL EQUITY AND LIABILITIES
38,629
57,886
Annual Report 2024 Financial Statement Seabird Exploration PLC 78
On 29 April 2025, the board of directors of SeaBird Exploration Plc authorized these Financial Statements for issue.
Ståle Rodahl – Executive Chairman
Hans Christian Anderson – Director
Øivind Dahl-Stamnes – Director
Sverre Strandenes – Director
Odd Sondre Svalastog Helsing – Director
Annual Report 2024 Financial Statement Seabird Exploration PLC 79
Statement of cash flow
Year ended 31 December
All figures in USD 000's
Note
2024
2023
Cash flows from operating activities
Profit/(loss) before income tax
235
-2,782
Adjustments for
Write down on group payables
15
-4
-1,518
Impairment on investments in subsidiary
13
1,378
5,385
Impairment on group receivables, net
15
-3,918
15
Loss /(gain) from sale of shares in subsidiaries
9
-
-4,608
Unrealized exchange (gain)/loss
-
12
Interest income
11
-162
-1,434
Interest expense
11
905
2,183
Fair value adjustments through profit or loss
13
132
-262
Share of net income/(loss) of associates and joint ventures
13
16
5
Other items
189
2,009
Paid income tax
-103
-
(Increase)/decrease in trade and other receivables and restricted cash
-11
-2,065
Increase/(decrease) in trade and other payables
121
-102
Net movement of related parties balances
15
6,251
3,460
Net cash used in operating activities
5,029
96
Cash flows from investing activities
Net cash used in investing activities
-
-
Cash flows from financing activities
Dividend received
13
45
Distribution to shareholders
12
-3,694
Receipt of bank interest
11
57
Net cash from financing activities
-3,592
-
Net decrease in cash and cash equivalents
1,437
96
Cash and cash equivalents at beginning of the period, unrestricted
136
40
Cash and cash equivalents at end of the period, unrestricted
1,573
136
Annual Report 2024 Financial Statement Seabird Exploration PLC 80
Statement of changes in equity
All figures in USD 000's
Note
Paid in
capital
Revaluatio
n reserve
Share
options
granted
Retained
earnings
Total
equity
Balance as of 1 January, 2023
36,944
12
354
-5,475
31,835
Profit/(Loss)
-
-
-
-2,782
-2,782
Other comprehensive income
-
-
-
-
-
Total comprehensive income
-
-
-
-2,782
-2,782
Green Minerals distribution
-
-
-
-4,610
-4,610
Net share options movement
-
-
-202
-
-202
Total contributions by and distributions to owners
-
-
-202
-4,610
-4,811
Balance as of 31 December 2023
36,944
12
153
-12,867
24,242
Profit/(Loss) for the year
-
-
-
127
127
Other comprehensive income for the year
-
-
-
-
-
Total comprehensive income for the year
-
-
-
127
127
Share premium reduction
6
-12,192
-
-
12,192
-
Capital distribution
6
-3,694
-
-
-
-3,694
Net share options movement
-
-
105
-
105
Other equity transactions
-
-
-
-
-
Total contributions by and distributions to owners
-15,886
-
105
12,192
-3,589
Balance as of 31 December 2024
21,058
12
258
-548
20,780
Annual Report 2024 Financial Statement Seabird Exploration PLC 81
Notes to the financial statements
All figures in USD 1.000, if not stated otherwise.
The separate financial statements are an integral part of the annual financial statements and should be read in conjunction with the
consolidated financial statements.
1 General information
The accompanying separate financial statements represent the activities of SeaBird Exploration PLC (the “Company”) for the year ended
31 December 2024 (the “period”). The financial statements were authorized for issue by the board of directors on 29 April 2025.
These financial statements are the separate financial statements.
Country of incorporation
The company was incorporated in the British Virgin Islands as a limited liability company in 2000. The company was re-domiciled to Cyprus
on 18 December 2009. Seabird has direct ownership in two vessels and the company is listed on Oslo Børs with ticker SBX. The company’s
registered address is at Panteli Katelari 16, Diagoras House floor 7, 1097, Nicosia, Cyprus. The Group main office is located in Bergen
(Norway) with the office address Sandviksbodene 68, 5035 Bergen. SeaBird Exploration Plc is tax resident in Norway and registered in the
corporate registers both in Norway and Cyprus.
Principal activities
The principal activity of the company, which is unchanged from last year, is the ownership of companies operating within the seismic
industry, including providing financing to subsidiaries.
Basis of preparation
These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the
European Union (EU) and the requirements of the Cyprus Companies Law, Cap.113. The financial statements have been prepared under
the historical cost convention, except financial investment and share options that are held at fair value through profit and loss. The
preparation of financial statements also requires the use of assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses
during the reporting period. Although these estimates are based on management’s best knowledge of current events and actions, actual
results may ultimately differ from those estimates.
The Financial Statement are presented in United States Dollars (USD) and all values are rounded to the nearest thousand (USD 1,000),
except when otherwise stated.
Going concern
As at 31 December 2024 the Company is in a net current liability position of USD 10.3 million, and generated net profit for the year of USD
0.1 million. As at 31 December 2024 the Company is in a net assets position of USD 20.8 million. The assessment of going concern of the
Company relies heavily on the ability of the Company and its subsidiaries, the Group, to secure future cash inflows over the going concern
assessment period which extends through to a period of at least one year from the date of approval of the financial statements to meet
their liabilities as they become due. Refer also to Note 2.1 of the Consolidated Financial Statements.
Based on the assessment, Seabird Group will be in the position to repay its short-term obligations as they fall due. For this reason,
management considers it reasonable to use the assumption of going concern in the preparation of the audited financial statements of
the Company.
2 Material accounting policy information
The accounting policies that are material to the Company are set out below. These policies have been consistently applied to all years
presented in these separate financial statements unless otherwise stated. SeaBird Exploration Plc has prepared its financial statements in
accordance with International Financial Reporting Standards as adopted by the European Union. The accounting policies are consistent
with those applied in the consolidated financial statements.
For the discussion of risk factors, financial risk management, and critical accounting estimates and judgments; refer to notes 3 and 4 of
the Consolidated Financial Statements.
Annual Report 2024 Financial Statement Seabird Exploration PLC 82
Shares in subsidiaries (see Note 13 Shares in subsidiaries and associates) are stated at cost less any provision for impairment. The Company
periodically evaluates the recoverability of investments in subsidiaries whenever indicators of impairment are present. Indicators of
impairment include such items as declines in profitability, negative balance between the subsidiary's equity position and the carrying
value of the investment, or external macro-economic factors that may indicate that the carrying amount of an asset is not recoverable.
If facts and circumstances indicate that investment in subsidiaries may be impaired, the estimated future cash flows associated with these
subsidiaries are compared to their carrying amounts to determine if a write-down to fair value is necessary.
The other material accounting policies applied by the Company are those described in note 2 to the Consolidated Financial Statement.
3 Income tax expense
SeaBird Exploration Plc is subject to taxation in Norway which impose corporation tax at the rate of 22%.
All figures in USD 000's
2024
2023
Current period
-
-
Adjustment for prior periods
108
-
Total current tax
108
-
All figures in USD 000's
2024
2023
Continuing operations profit/(loss) before income tax
235
-2,782
Tax arising at the rate of 22%
52
-612
Effect of tax adjustments in arriving at taxable profit and tax losses
-52
612
Corporation tax current year
-
-
Corporation tax prior years
108
-
Total tax expense/(reversal) attributable to continuing operations
108
-
4 Trade receivables and other current assets
Trade receivables
All figures in USD 000's
2024
2023
Trade receivables gross
2,060
2,060
Less allowance for expected credit losses
-2,060
-2,060
Total trade receivables
-
-
Allowance for ECL and write offs, net of reversals (the below table relates to the impact on the statement of income)
All figures in USD 000's
2024
2023
Loss on trade receivables
-
2,060
Reversed write offs
-
-
Total allowance for ECL
-
2,060
Other current assets
All figures in USD 000's
2024
2023
Prepaid expenses and deposits
3
10
Other current assets
-
-
Total other current assets
3
10
Annual Report 2024 Financial Statement Seabird Exploration PLC 83
5 Cash and cash equivalents
All figures in USD 000's
2024
2023
Restricted cash
16
-
Cash and cash equivalents
1,573
136
Cash and bank balances
1,589
136
6 Share capital and share options
Number of authorized shares
2024
2023
Number of ordinary shares
91,000,000
91,000,000
Nominal value per share
EUR 0.17
EUR 0.17
Share Capital
The issued share capital was EUR 13,681 thousand and share premium fund was EUR 4,243 thousand as of 31 December 2024.
All figures in USD 000's
2024
2023
Share capital
16,036
16,036
Share premium
5,022
20,908
Paid in capital
21,058
36,944
The parent company completed two cash distributions to its shareholders during 2024 in the form of repayment of paid in capital; to
facilitate this the parent company reduced the share premium fund by USD 12.2 million for the purpose of writing down losses. On 24 June
2024 the parent company completed a NOK 0.25 repayment of paid in capital (NOK 20.1 million or USD 1.9 million on the date of payment)
and on 8 November 2024 the parent company completed a NOK 0.25 repayment of paid in capital (NOK 20.1 million or USD 1.8 million
on the date of payment). The shareholders of the Group on 19 December 2024 approved a NOK 0.4 per share distribution of paid in
capital, which has been approved by Cyprus courts on 5 February 2025 and repaid to shareholders on 17 February 2025 (NOK 32.2 million
or USD 2.9 million on the date of payment).
Number of shares issued
2024
2023
Total number of shares issued at 1 January
80,476,271
80,476,265
Reclassification
-
6
Total number of shares as per 31 December
80,476,271
80,476,271
In March 2023 the Company reallocated 6 shares that has been held outside the Norwegian VPS in relation with the reallocation of the
shareholder register from Cyprus to Norway. The shares were registered with a premium price of nil and increased its share capital by EUR
1.
There are no share classes and no voting restrictions on the shares.
Employee Share Option Plans
The employee share option program consists of 1.2 million warrants and options as of 31 December 2024. The options will vest over period
of three years from the grant date, while the Warrants will vest over a period of two years. One third of the options granted will vest one
year after grant date, one third of the options granted will vest two years after grant date and one third of the options granted will vest
three years after grant date; similar, the warrants will be distributed over two periods. All options and warrants are exercisable at any time
within one year from the corresponding vested dates. The options and the warrants have an average exercise price of NOK 5.86.
Annual Report 2024 Financial Statement Seabird Exploration PLC 84
Estimated value of the share options granted, reduced for services not rendered, as at 31 December 2024, is presented in equity as share
options granted.
2024
2023
Total number of options at 1 January
2,320,000
3,140,000
Exercised in year
-346,667
-
Expired in year
-820,000
-820,000
Total number of options at 31 December
1,153,333
2,320,000
of which is vested
806,667
1,166,667
of which is non-vested
346,667
1,153,333
Total options
1,153,333
2,320,000
During the period, 346,667 vested options were paid out in cash on the Company’s discretion.
The total value of share options granted is calculated using the Black-Scholes model, assuming that all the options will be exercised. The
fair value determined at the grant date is expensed over the vesting period of the options for the options granted less expected number
of forfeited options. The calculation is based on:
- Trailing 252 days logarithmic return volatility
- Given exercise price for the given option trance the given year at grant date
- Time to maturity for the given option tranches
- Assume no dividends
- A risk-free interest rate
7 Trade payables and other payables
All figures in USD 000's
2024
2023
Trade payables
70
60
Accrued expenses and other payables
166
158
Total trade and other payables
236
218
8 Other income (expenses), net
All figures in USD 000's
2024
2023
Allowance for ECL and write offs, net of reversals
-
-2,060
Other income (expenses)
3
9
Other income (expenses), net
3
-2,051
9 Other financial items, net
All figures in USD 000's
2024
2023
Profit on sale of shares
-
4,608
Net foreign exchange gain/(loss)
-15
31
Other financial income/(expense)
-110
44
Total other financial items, net
-125
4,683
Annual Report 2024 Financial Statement Seabird Exploration PLC 85
Profit on sale of shares represents the Company’s profit from distributing the Company’s shareholdings in Green Minerals AS to its
shareholders (USD 4.6 million). The distribution was completed on 25 January 2023.
10 Expenses by nature
All figures in USD 000's
2024
2023
Directors’ remuneration
121
101
Nomination committee remuneration
11
11
Legal and professional
475
476
Other expenses SG&A
689
448
Selling, general and administrative expenses
1,296
1,036
Other expenses SG&A include management fee charge of USD 0.5 million from Seabird Exploration Norway AS (2023: USD 0.5 million).
11 Finance income and expenses
Financial income
All figures in USD 000's
2024
2023
Interest income on intercompany borrowings
105
1,407
Interest income on cash and cash Equivalents
56
27
Interest income
162
1,434
Financial expenses
All figures in USD 000's
2024
2023
Interest on tax liabilities
3
-
Interest expense on intercompany borrowings
901
2,183
Interest expense
905
2,183
Please see Note 15 Related-Party transactions for more information on Interest expense and interest income on intercompany borrowings.
12 Dividends and distributions
No dividend was distributed for the year ended 31 December 2024 (2023: USD nil).
The Group completed two cash distributions to its shareholders during 2024 in the form of repayment of paid in capital. On 24 June 2024
the parent company completed a NOK 0.25 repayment of paid in capital (NOK 20.1 million or USD 1.9 million on the date of payment)
and on 8 November 2024 the parent company completed a NOK 0.25 repayment of paid in capital (NOK 20.1 million or USD 1.8 million
on the date of payment). The shareholders of the Group on 19 December 2024 approved a NOK 0.4 per share distribution of paid in
capital, which has been approved by Cyprus courts on 5 February 2025 and repaid to shareholders on 17 February 2025 (NOK 32.2 million
or USD 2.9 million on the date of payment).
Annual Report 2024 Financial Statement Seabird Exploration PLC 86
13 Shares in subsidiaries and associates
Company
Country of
incorporation
Shareholding and voting
rights
Investments in subsidiaries
(USD000's)
2024
2023
2024
2023
Aquila Explorer Inc.*
Panama
-
100%
-
-
Biliria Marine Company Limited**
Cyprus
100%
100%
-
10
GeoBird Management AS
Norway
100%
100%
1,742
672
Green Energy Group AS*
Norway
-
100%
-
3
Harrier Navigation Company Limited
Cyprus
100%
100%
-
13,635
Hawk Navigation Company Limited**
Cyprus
100%
100%
-
-
Munin Navigation Company Limited**
Cyprus
100%
100%
-
9
Oreo Navigation Company Limited**
Cyprus
100%
100%
-
-
Raven Navigation Company Limited**
Cyprus
100%
100%
-
77
Sana Navigation Company Limited
Cyprus
100%
100%
-
2
Seabed Navigation Company Limited
Cyprus
100%
100%
-
3,865
SeaBird Crewing Mexico S. DE R.L. DE C.V.
Mexico
100%
100%
-
-
SeaBird Exploration Americas Inc.
USA
100%
100%
-
-
SeaBird Exploration Asia Pacific PTE. Ltd.**
Singapore
100%
100%
-
-
SeaBird Exploration Crewing Limited
Cyprus
100%
100%
-
2,061
SeaBird Exploration Cyprus Limited
Cyprus
100%
100%
-
2,657
SeaBird Exploration Finance Limited
Cyprus
100%
100%
-
1,049
SeaBird Exploration FZ-LLC
UAE
100%
100%
-
41
SeaBird Exploration Multi-Client Limited
Cyprus
100%
100%
-
292
SeaBird Exploration Nigeria Ltd.
Nigeria
100%
100%
-
-
SeaBird Exploration Norway AS
Norway
100%
100%
1,613
-
SeaBird Exploration Private Limited***
India
26%
26%
-
65
SeaBird Exploration Shipping AS
Norway
100%
100%
-
40
SeaBird Exploration Vessels Limited
Cyprus
100%
100%
27,665
25,456
SeaBird Seismic Mexico S. DE R.L. DE C.V.
Mexico
100%
100%
-
-
Susco AS*
Norway
-
100%
-
-
Investment in subsidiaries and associates
31,020
49,934
*) Aquila Explorer Inc. was dissolved on 25 June 2024, and Green Energy Group AS and Susco AS were dissolved on 7 March 2024.
**) Biliria Marine Company Limited, Hawk Navigation Company Limited, Munin Navigation Company Limited, Oreo Navigation Company
Limited, Raven Navigation Company Limited and Seabird Exploration Asia PTE filed for voluntary liquidation.
***) Seabird Exploration Private Limited is recognised using the equity accounting principle. For further information, please refer to Note
2.6 Interests in joint operations and associates in the Consolidated Financial Statement.
Annual Report 2024 Financial Statement Seabird Exploration PLC 87
Movements in investments in subsidiaries:
All figures in USD 000's
2024
2023
Opening book amount as of 1 January
49,869
50,328
Acquisition
11,402
4,926
Capital reduction
-28,793
-
Impairments
-1,378
-5,385
Deconsolidation of subsidiaries
-80
-
Closing book amount as of 31 December
31,020
49,869
The acquisition in years 2024 and 2023 relates to debt conversions to equity in a wholly owned Norwegian subsidiary (Seabird Exploration
Norway AS). The capital reduction forms part of an optimization of the Group’s corporate structure and affects the following wholly owned
subsidiaries in Cyprus: Harrier Navigation Company Ltd, SeaBird Exploration Finance Ltd, SeaBird Exploration Multi-Client Ltd, SeaBed
Navigation Company Ltd, SeaBird Exploration Cyprus Ltd, SeaBird Exploration Crewing Ltd and SeaBird Exploration Vessels Ltd.
The investments in subsidiaries are carried at cost less any provision for impairment.
Equity accounted investees:
All figures in USD 000's
2024
2023
Opening book amount as of 1 January
65
-
Acquisition
-
1
Fair value gain on acquisition
-
69
Dividends received
-45
-
Share of profit/(loss)
-16
-5
Impairments
-4
-
Closing book amount as of 31 December
-
65
Please see Note 18 Subsidiaries and associates within the Group in the Consolidated Financial Statement for more information.
Financial assets at fair value through profit and loss:
All figures in USD 000's
2024
2023
Opening book amount as of 1 January
262
-
Fair value gain on distribution
-
307
Fair value gain (loss) in the period
-132
-45
Closing book amount as of 31 December
130
262
Please see Note 18 Subsidiaries and associates within the Group in the Consolidated Financial Statement for more information.
Annual Report 2024 Financial Statement Seabird Exploration PLC 88
Net income, asset and liabilities in discontinued operations
Biliria Marine Company Limited, Hawk Navigation Company Limited, Munin Navigation Company Limited, Oreo Navigation Company
Limited, Raven Navigation Company Limited and SeaBird Exploration Asia Pacific PTE. Ltd are recognised as companies under
discontinued operations as they filed for voluntary liquidation.
Please see Note 18 Subsidiaries and associates within the Group in the Consolidated Financial Statement for more information.
Year ended 31 December
All figures in USD 000's
2024
2023
Current assets attributable to group companies
103
-
Other current assets
15
-
Non-current assets
-
-
Total assets
118
-
Current liabilities attributable to group companies
4,665
-
Other current liabilities
1,547
-
Non-current Liability
-
-
Total liabilities
6,212
-
Total Equity
-6,094
-
Year ended 31 December
All figures in USD 000's
2024
2023
Revenue
-
-
Expenses
-63
-
Net income
-63
-
Recognition of net income, asset and liabilities of discontinued operations
Year ended 31 December
All figures in USD 000's
2024
2023
Total assets attributable to discontinued operations
-
-
Total Liabilities attributable to discontinued operations
103
-
Net assets / (liability)
-103
-
The amount of USD 103 represents the amount due to the discontinued operations, i.e. the companies under liquidation.
Please see Note 18 Subsidiaries and associates within the Group in the Consolidated Financial Statement for more information.
14 Commitments and contingencies
The company's commitments and contingencies as per 31 December 2024 relate to the financial guarantees as described in Note 15
Related-Party transactions (v).
Annual Report 2024 Financial Statement Seabird Exploration PLC 89
15 Related-Party transactions
i) Purchases of services and expenses from group companies
Expenses amounting to USD 0.5m were purchased from a subsidiary (2023: USD 0.5m).
ii) Key management personnel compensation
The compensation of the key management personnel employed by the company's subsidiaries, as well as the remuneration of the
company's directors, are presented in group Consolidated Financial Statement note 28.
iii) Due from related parties
Loans to companies within SeaBird group:
All figures in USD 000's
2024
2023
Opening net book amount as of 1 January
7,544
12,760
Additional loans, net of repayments
5,722
-1,682
Conversion of loans to equity in subsidiaries
-11,402
-4,926
Interest charged
105
1,407
Reversal / (Impairment) on group receivables
3,918
-15
Net book amount as of 31 December
5,887
7,544
Gross book amount
7,016
19,287
Accumulated impairment
-1,129
-11,743
Net book amount as of 31 December
5,887
7,544
Please see Note 13 Shares in subsidiaries and associates for more information on conversion of loans to equity in subsidiaries.
The above loans were provided at 5.9 % weighted average interest rate (6.9% in 2023) and are repayable on demand. The loans are
unsecured.
Impairment losses are included in statement of income, "Impairment on group receivables".
iv) Due to related parties
Loans from companies within SeaBird group:
All figures in USD 000's
2024
2023
Opening net book amount as of 1 January
33,426
30,981
Additional loans, net of repayments
11,973
1,780
Capital reduction in subsidiaries
-28,793
-
Interest charged
901
2,183
Write down on group payables
-4
-1,518
Net book amount as of 31 December
17,503
33,426
Please see Note 13 Shares in subsidiaries and associates for more information on capital reduction in subsidiaries.
The above loans were provided at 5.9 % weighted average interest rate (6.9% in 2023) and are repayable on demand.
v) Financial guarantees
The company is exposed to credit risk in relation to financial guarantees given to Sparebank 1 SMN related to a credit facility provided to
SeaBird Exploration Norway AS. The company is equally liable for the repayment of the facility. However, the management has considered
the substance of the agreement and concluded that the obligation is in substance a financial guarantee. The Company's maximum
Annual Report 2024 Financial Statement Seabird Exploration PLC 90
exposure in respect of these guarantees is the maximum amount the company could have to pay if the guarantee is called on,
irrespective of the likelihood of being exercised, as shown below:
All figures in USD 000's
2024
2023
Sparebank 1 SMN credit facility
10,745
13,604
The Sparebank 1 SMN credit facility which have been guaranteed by the Company has a maximum limit of USD 15.6 million. The balance
is USD 10.7 million at year end 2024.
vi) Dividends
The company received dividends from the associate of USD 45.000 in 2024 (USD 119.000 in 2023). No dividend received from the
subsidiaries in 2024 (nil in 2023).
vii) Shareholding
Management and the board of directors, as of 31 December 2024 held the following shares on own account:
Name
Title
Ordinary
shares
% ownership
Outstanding
options*
Ståle Rodahl
Chairman
3,255,775
4.05%
120,000
Hans Christian Anderson
Board
Member
-
-
-
Odd Sondre Svalastog Helsing
Board
Member
1,208,333
1.50%
-
Øivind Dahl-Stamnes
Board
Member
80,000
0.09%
-
Sverre Strandenes
Board
Member
-
-
-
Finn Atle Hamre
CEO
15,125
0.02%
453,333
Sveinung Alvestad
CFO
44,843
0.06%
366,667
*) See Note 6 Share capital and share options for further information of the company's share option program.
16 Financial Instruments
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the company.
The company has the following types of financial assets that are subject to the expected credit loss model:
- Amounts due from related parties
- Cash and bank balances (including restricted cash)
- Financial guarantees
The table below details the company's maximum exposure to credit risk as at year end:
All figures in USD 000's
Note
2024
2023
Amounts due from related parties, gross
15
7,016
19,287
Financial guarantees
15
10,745
13,604
Restricted cash
5
16
-
Cash and cash equivalents
5
1,573
136
Total
19,350
33,027
The cash and cash equivalents represent cash at bank which is held with a bank institution with an investment grade rating of Aa3.
Annual Report 2024 Financial Statement Seabird Exploration PLC 91
The amount of financial guarantee contracts presented in the table above reflects the company’s maximum exposure with regards to
the guarantees described in Note 15 Related-Party transactions (v) and is not an amount recognized on the statement of financial
position.
The receivables from subsidiaries are assessed for lifetime expected credit losses, determining whether credit risk has increased significantly
since initial recognition. At year-end 2024 the gross receivable balance is USD 7.0 million (2023: USD 19.3 million). When the Company has
receivables from subsidiaries, the loss allowance is estimated based on individual assessment per receivable, taking into consideration
the subsidiary's equity position, financial performance, liquidity position and ability to pay. The company writes off an amount due from
related companies when there is are indicators that the counterparty is unable to pay and/or when there is a management decision to
settle intra-group balances through write-offs.
With regards to cash and cash equivalents, the company measures its expected credit loss by reference to the banks’ external credit
ratings and relevant published default and loss rates, taking into consideration the €100.000 per bank deposit protection guaranteed
under the EU Deposit Guarantee Scheme and the NOK 2 million guarantee provided by the Norwegian Bank’s Guarantee Fund.
Liquidity Risk
Ultimate responsibility for risk management rests with the board of directors, which has established an appropriate liquidity risk
management framework for the management of the company’s short-, medium- and long-term funding and liquidity requirements. The
company manages liquidity risk by continuously monitoring forecast and actual cash flows on a group level and ensuring the availability
of funding through an adequate amount of available debt or equity.
The table below summarizes the maturity profile of the company’s financial liabilities at 31 December 2024 on contractual undiscounted
payments.
The amounts included for financial guarantee contracts are the maximum amount the company could be forced to settle under the
arrangement for the full guaranteed amount if that amount is claimed by the counterparty to the guarantee (see Note 15 Related-Party
transactions) and is not an amount recognized on the statement of financial position.
All figures in USD 000's
On
Demand
Less Than
12 Months
1 to 5 Years
Total
Due to related parties
33,426
-
-
33,426
Financial guarantee contracts
-
4,921
15,207
20,128
Total financial liabilities as of 31 December 2023
33,426
4,921
15,207
53,554
Due to related parties
17,503
-
-
17,503
Financial guarantee contracts
-
4,677
11,689
16,366
Total financial liabilities as of 31 December 2024
17,503
4,677
11,689
33,869
Financial guarantee contracts include interest for the respective periods.
Annual Report 2024 Financial Statement Seabird Exploration PLC 92
Currency risk
The company’s exposure to foreign currency risk was as follows based on notional amounts per 31 December 2024 and 31 December
2023.
All figures in USD 000's
Total
NOK
EUR
SGD
Others
Assets
7,888
7,823
-
-
65
Liabilities
-209
-209
-
-
-
Net position as of 31 December 2023
7,679
7,613
-
-
65
Sensitivity 10%
768
761
-
-
7
All figures in USD 000's
Total
NOK
EUR
SGD
Others
Assets
985
985
-
-
-
Liabilities
-16
-16
-
-
-
Net position as of 31 December 2024
970
970
-
-
-
Sensitivity 10%
97
97
-
-
-
The following significant exchange rates applied during the year:
Average rate
Year end
USD per :
2024
2023
2024
2023
EUR
1.0824
1.0810
1.0389
1.1050
GBP
1.2788
1.2433
1.2529
1.2715
NOK
0.0931
0.0947
0.0881
0.0983
SGD
0.7488
0.7443
0.7335
0.7573
Fair value measurement
Green Minerals AS was distributed to shareholders on 25 January 2023, the remaining 446,801 (approximately 3% of the outstanding shares)
shares are booked at fair value through the profit and loss. The fair value as at 31 December 2024 was USD 0.1 million (2023: USD 0.3
million). Refer to Note 29 to the Consolidated Financial Statements.
17 Audit fees
All figures in USD 000's
2024
2023
Statutory audit
189
157
No non-audit services were provided by the statutory audit in the years 2024 or 2023.
18 Subsequent events
Note 31 to the Consolidated Financial Statements describes the significant events that occurred subsequent to the end of the reporting
period that impact the company and its subsidiaries. There were no other significant events concerning the parent company alone.
100
Annual Report 2024
DECLARATION OF THE MEMBERS OF THE BOARD OF DIRECTORS AND
THE OFFICIALS RESPONSIBLE FOR THE PREPARATION OF THE FINANCIAL
STATEMENTS
SeaBird Exploration Plc – 29 April 2025
In accordance with Article 9 sections (3c) and (7) of the Transparency Requirements (Traded Securities in Regulated Markets) Law 2007
(''the Law'') we, the members of the Board of Directors and the Company official responsible for the financial statements of Seabird
Exploration Plc for the year ended 31 December 2024, on the basis of our knowledge, declare that:
(a) The annual consolidated and separate financial statements which are presented on pages 30 to 92:
(i) have been prepared in accordance with the applicable International Financial Reporting Standards as adopted
by the European Union and the provisions of Article 9, section (4) of the law
(ii) provide a true and fair view of the particulars of assets and liabilities, the financial position and profit or loss of the
Seabird Exploration Plc and the entities included in the consolidated financial statements as a whole
(b) The management report provides a fair view of the developments and the performance as well as the financial position of
the Seabird Exploration Plc as a whole, together with a description of the main risks and uncertainties which they face.
Members of the Board of Directors:
Ståle Rodahl – Executive Chairman
Hans Christian Anderson – Director
Øivind Dahl-Stamnes – Director
Sverre Strandenes – Director
Odd Sondre Svalastog Helsing – Director
Responsible for drafting the financial statements:
Sveinung Alvestad, Chief Financial Officer
Seabird Exploration Plc
Cyprus
Panteli Katelari 16
Diagoras House floor 7
1097 Nicosia
Cyprus
Norway
Sandviksbodene 68
5035 Bergen
Norway
https://www.sbexp.com/
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