Annual Report
2022
Solstad Offshore ASA | Annual Report 202202
Contents
Annual Report 2022
Contents
Letter from the CEO 06
The Board’s Annual Report 14
Sustainability in Brief 24
Corporate Governance 26
Social Media Highlights 32
Group Accounts 36
Parent Accounts 90
Financial Calendar
Preliminary dates for quarterly reports and ordinary General Meeting in Solstad are:
Annual Report 2022: March 30
th
, 2023
Result 1. quarter 2023: May 11
th
, 2023
Ordinary General Meeting: May 11
th
, 2023
Result 2. quarter 2023: August 18
th
, 2023
Result 3. quarterly 2023: November 17
th
, 2023
Our
Vision
is to deliver industry-
leading sustainable
operations to the global
offshore energy market.
Solstad Offshore ASA | Annual Report 202204
Contents
Annual Report 2022
Safe
Safety is our main priority. Solstad vessels carry out operations all over the world,
sometimes in extreme conditions. We recognize all employees as our most valuable
asset, and we will never compromise on their safety.
We focus on quality in all parts of our services. We shall always be trusted to treat
everyone fairly and respectfully, and we keep our promises. With a vast fleet and
a competent organization, our clients shall trust us to perform all operations in a
safe manner and with focus on quality and efficiency in all stages of our service.
Reliable
Competent Responsible
All employees in Solstad are key personnel. We aim not only to fulfill our clients’
demands, but to deliver a service beyond their expectations. We ensure that our
personnel are constantly learning to have the right competence and knowledge
required at all times. Our operational knowledge shall be developed in close
interaction between the marine crew and the onshore organizations.
We care about people, assets and the environment. Our company is global, but also
local in the areas we operate. We conduct our business in a responsible manner,
respecting the law and universal human rights to benefit the communities where
we work. We are aware of our environmental footprint and take measurable steps
towards a better environment with the Solstad Green Operations program.
Solstad Offshore ASA | Annual Report 202206
Contents
Annual Report 2022
Letter from
the CEO
How do we maneuver in this changing landscape? As many readers may be aware of, in March 2023 we announced
plans to divest our PSV fleet. Some may question how this aligns with a more favorable market outlook. However, the
choice to depart from the PSV segment is based on a two-sided rationale:
• The first rationale behind this decision is financial. Our company’s debt level was high and we saw
an opportunity to improve our financial flexibility in an improving offshore market. By selling our
PSV fleet, Solstad is better positioned to seize potential opportunities that may arise and possibly
facilitate fleet renewal. Our forthcoming process to refinance the company will also potentially
be easier with a reduced debt load, thereby enabling us to negotiate improved terms.
• The second rationale is industrial and transitional. The CSV segment is already generating a large portion
of its revenue from the renewable energy market, while the AHTS segment will follow as floating wind
further develops. These vessel categories are well-positioned for the energy transition, given their potential
to cater to various offshore energy markets. In contrast, the PSV segment is nearly entirely dependent on
the oil and gas industry and is likely to remain so in the foreseeable future. Additionally, the PSV segment
possesses the lowest operating margins and the highest drydocking costs in the coming years.
Moving forward, Solstad will focus all our efforts on the CSV and AHTS segment and associated endeavors. We will
build up a service division that enables us to offer a more extensive range of services beyond our conventional offerings.
We have already begun providing clients with ROVs, tooling, and project support, and we plan to expand these services
further, either independently or in collaboration with strategic partners. Windstaller Alliance is well-established and is
working on exciting opportunities within offshore wind, while Remota AS is developing remote operation services that
currently look very promising.
Looking back at 2022 two more topics are worth mentioning.
Although the pace of the energy transition is accelerating, the decarbonization of our own operations remains a challenging
task. While we eagerly anticipate the technological advancements necessary for complete decarbonization, we remain
dedicated to enhancing operational efficiency in any way we can.
Additionally, I would like to acknowledge the dedication demonstrated by our crew and especially our Ukrainian employees
during a challenging year.
The offshore industry is changing, as it has always done. As a company, we must constantly adjust to ensure we remain
as relevant in the future as we have been in the past. I am proud that we have successfully executed a significant strategic
transaction that enables us to do precisely that.
The years ahead looks very encouraging.
Thank you!
Lars Peder Solstad
CEO
Since 2014, significant changes have occurred in our
industry, including the emergence of new companies and
the disappearance of others. Numerous vessels have either
been sold out of the offshore market or recycled, and the list
of vessels currently under construction is limited. In 2014,
when the downturn started, offshore renewable energy
was a relatively small market segment. Today, this has
evolved into a substantial and rapidly expanding market.
As we look towards the future with improved market conditions,
we acknowledge that the energy transition process requires
time and that the oil and gas market will continue to co-
exist with the renewables market for a considerable amount
of time. The increased focus on energy security following
the tragic invasion of Ukraine indicates that we are heading
towards a phase with increased investments in all types of
offshore energy. At the same time, the supply side appears
to be relatively stable, which points to a promising outlook
for the offshore energy sector in the years ahead.
Solstad Offshore ASA | Annual Report 202208
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Annual Report 2022
Key Figures
and Highlights
• The Company has completed a year with significant growth
despite the global geopolitical uncertainty.
• Tender activity has steadily increased throughout the year. The Company has seen all time high
order intake in the second half of the year, ending on a backlog of MNOK 9,200 at year-end.
• Strengthened the presence within remotely managed offshore services by
establishing Remota AS together with DeepOcean Group and Østensjø Group.
• At year-end, the Company operated and managed a fleet of 86 vessels;
27 CSV, 20 AHTS and 39 PSV.
• Liquidity is MNOK 2,170 at year-end 2022, compared to MNOK 2,459 in 2021.
• Operating income increased with 20 percent to MNOK 6,500 vs MNOK 5,418 in 2021. Key drivers
were improved utilization, higher day rates, and strengthened sales of additional services.
• Adjusted EBITDA increased with 26 percent to MNOK 1,938 vs MNOK 1,534 in 2021.
• The Company has per year-end 2022 installed battery hybrid solutions to reduce
emissions on ten vessels and an additional nine vessels have been fitted with shore
power. The Company received the annual Offshore Support Journal’s ‘ESG Award’.
• The agreement to divest the PSV segment in 2023 implies a strategic
repositioning of the Company as one of the main global owner and operator
of high-end tonnage of AHTS and Subsea vessels (CSVs).
Key Financials
(MNOK)
2022
01.01-31.12
2021
01.01-31.12
2020
01.01-31.12
2019
01.01-31.12
Income 6,500 5,418 5,026 5,245
Adjusted EBITDA 1,938 1,534 1,282 1,411
EBIT 1,299 -7 -2,185 -1,19 6
Profit before Tax -1,013 -1,110 7,25 0 -2,971
Cash and equivalents 2,170 2,459 2,412 1,134
Working capital 320 -119 -803 -26,264
Equity 1,753 3,083 4,243 -3,835
Net interest bearing debt* -21,117 -18,257 -18,219 -30,983
Order backlog 9,200 5,600 5,200 8,200
*Including recognized debt relating to IFRS 16 Leases
Solstad Offshore ASA | Annual Report 202210
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10
Financial Summary
References and Definitions
1. Operating result before depreciation and impairment in percentages of total
operating income
2. Result before tax, in percentage of average equity including non-controlling
interests
3. Operating result before depreciation and impairment adjusted for joint ventures,
excess values charter parties from mergers, operating leases and other non-cash
related items
4. Current assets divided by current liabilities
5. Booked equity including non-controlling interests in percentage of total assets
6. Cash and bank deposits (free and restricted)
7. Total current assets less total current liabilities (including current interest bearing
liabilities)
8. Interest bearing liabilities is the total of the accounting lines “Interest bearing
liabilities”, “Current interest bearing liabilities” and “Leasing obligations”, adjusted
for IFRS 9 adjustment and balance booked borrowing costs
9. Net interest bearing liabilities is interest bearing liabilities (8) less cash and bank
deposits (6)
Solstad Offshore ASA has included the above Alternative Performance Measures
(APM), which are commonly used in the business, as they are used internally by
management to understand the Group’s financial performance. Hence, it is deemed
that the APMs also will provide useful information to the reader. For further definitions,
refer to page 86.
(MNOK)
2022 2021 2020 2019 Ref
PROFIT AND LOSS
Freight income 6,295 5,128 4,844 5,016
Other operating income 205 289 182 228
Operating result before depreciation and impairment 1,907 1,402 1,032 1,274
Operating result 1,299 -7 -2,226 -1,237
Net financial items -2,312 -1,103 9,477 -1,734
Ordinary result before tax -1,013 -1,110 7, 250 -2,971
Net result for the year -1,118 -1,136 7,254 -3,129
Hereof majority’s share -1,113 -1,102 7,241 -3,13 0
BALANCE SHEET
Defered tax asset 4 14 6 -
Long term assets 21,257 20,865 22,204 27,003
Current assets 4,762 4,072 3,869 2,830
Total assets 26,019 24,938 26,069 29,833
Equity 1,753 3,083 4,243 -3,835
Deferred tax - - - 17
Long-term liabilities and provisions 20,236 17,850 17,181 4,574
Current liabilities 4,030 4,004 4,645 29,094
Interest bearing liabilities 23,287 20,718 20,631 32,117 8
Bank overdraft - - - -
Free and restricted bank deposits 2,170 2,459 2,412 1,13 4
Net interest-bearing liabilities 21,117 18,259 18,219 30,983 9
PROFITABILITY
Operating margin 29% 26 % 21 % 24 % 1
Earning on equity -42 % -30 % 3.557 % 128 % 2
LIQUIDITY
Liquid assets 2,170 2,459 2,412 1,134 6
Working capital 320 -119 -803 -26,264 7
Adjusted EBITDA 1,938 1,534 1,282 1,411 3
Current ratio 1.1 1.0 0.8 0.1 4
CAPITAL
Total assets 26,019 24,938 26,069 29,883
Equity 1,753 3083 4,243 -3,835
Equity ratio 7 % 12 % 16 % -13 % 5
Solstad Offshore ASA | Annual Report 202212
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Annual Report 2022
12
The Board of
Directors
HARALD ESPEDAL (b. 1972)
Harald Espedal is a graduate from The Norwegian
School of Economics (NHH) in economics with
additional studies in auditing. Today he is the Chairman
of Lyse AS, Sandnes Sparebank, Espedal & CO AS,
Deputy Chair in Stavanger Concert Hall, and Board
member in Aspelin Ramm and The Norwegian School
of Economics.
Espedal has a long career within the finance and
investment industry including as CEO and Investment
Director for SKAGEN and Investment Director for Vesta.
SHARES IN SOLSTAD OFFSHORE ASA: 656 687
FRANK O. REITE (b. 1970)
Frank O. Reite first joined Aker in 1995 and was CFO in
Aker ASA from August 2015 until August 2019. He came
from the position of President & CEO of Akastor. Reite
holds several board positions including the posistion as
vice chairman in Aker ASA and as a board member in
AMSC ASA
Frank O. Reite has experience from banking and has
served as Director in Paine & Partners. Frank O. Reite
holds a B.A. in business administration from
Handelshøyskolen BI in Oslo.
SHARES IN SOLSTAD OFFSHORE ASA: 0
(Further details refer to note 9)
INGRID KYLSTAD (b. 1985)
Ingrid Kylstad is Sustainability Lead in ZeroLab by
Torvald Klaveness. Before joining Klaveness in 2021,
Kylstad was COO in Katapult Ocean, a seed stage
investor within ocean technology. Prior to that she
worked for the Norwegian Shipowners Association and
spent several years in Brussels working on policy and
regulatory issues. She is a board member in GC Rieber
Salt.
Kylstad holds an MSc in European Studies from London
School of Economics and Political Science and a BSc in
Liberal Arts from Maastricht University. She has also
completed a management program at the Solvay
Brussels School of Economics and Management.
SHARES IN SOLSTAD OFFSHORE ASA: 0
PEDER SORTLAND (b. 1963)
Peder Sortland, currently the CEO of North Sea
Infrastructure AS (NSI) and Norsk Havvid AS, has 30
years’ experience from the oil and gas industry. Prior
to NSI, Sortland held roles as the CEO of Global
Maritime Group, Apply Group and Ross Offshore/
Subsea Technology Group and as Regional Vice
President for Subsea 7 in Norway. Sortland spent 18
years in Equinor up to Senior Vice President level,
predominantly in areas of business development,
commercial negotiations and strategy work. Sortland
has a business education on MBA level from University
of Wyoming and is a Fullbright Scholar.
SHARES IN SOLSTAD OFFSHORE ASA: 0
THORHILD WIDVEY (b. 1956)
Thorhild Widvey har held various positions in the
Norwegian Ministries in the period between 2002 to
2015. Prior to this she was a member of Parliament
(Storting) from 1989 to 1997, representing Høyre, the
conservative party of Norway.
Ms Widvey is chair of the Board of Statkraft AS/SF and
Vår Energi ASA. She has previously held a number of
board positions both in private and stock listed
companies. She has been a board member of Kværner
ASA (2016-2020) and continued as member of board
of Aker Solutions after the merger with Kværner(2020)
until 2022.
She holds several board positions in private businesses
and foundations.
SHARES IN SOLSTAD OFFSHORE ASA: 0
ELLEN SOLSTAD (b. 1974)
Mrs. Solstad holds a bachelor’s degree from BI. She
has previous work experience from R.G Hagland AS
and Solstad Offshore UK Ltd. Mrs. Solstad is currently
Chairman of Solstad Family Office and a board mem-
ber of Solvang ASA and Karmsund Interkommunale
Havnevesen IKS.
SHARES IN SOLSTAD OFFSHORE ASA: 0
(Further details refer to note 9)
Solstad Offshore ASA | Annual Report 202214
Contents
Annual Report 2022
Board of
Directors’
Report
Solstad Offshore ASA (“the Company”
or “Solstad”) is a world leading owner
and operator of offshore service vessels
(OSVs), offering maritime services to
the global offshore energy industry.
Per year-end 2022 the Company has 3,400 highly skilled employees and
nine offices globally. The Company owns and operates a flexible fleet of
modern offshore vessels which consist of PSVs (platform supply vessels),
AHTS’ (anchor handling tug support vessels) and CSVs (construction service
vessels).
The supply vessels (AHTS and PSVs) support oil
field operators in production as well as development
and exploration activities. The Company’s CSV fleet
supports subsea and renewable energy projects
world-wide and is partly working on contracts and
partly utilized for seasonal activities. The CSVs on
contracts serve the IMR (inspection, maintenance
and repair) and the SURF (subsea, umbilicals,
risers and flowlines) markets, or support installation
and maintenance work related to the renewable
energy industry offshore.
The tragic invasion of Ukraine has resulted in more
focus on energy security, benefiting the oil and gas
industry, while the ambitions to increase energy
production from renewable sources continue as
before. The combination gives higher activity, and
after several years with weak market conditions,
2022 could be the turning point for the offshore
service industry.
The oil price has been above USD 80 per barrel
most of the year, giving incentives for the oil
companies to continue investing. Further, the
number of offshore wind projects under evaluation
has increased further.
The Company is positioned for both oil and gas
and renewable energy activities. About 25% of the
EBITDA Adjusted in 2022 came from renewable
energy activities, and the Company expect to
increase this activity further the coming years.
The operating income increased by about 20%, to
MNOK 6,500 in 2022, compared to MNOK 5,418
in 2021. Operational expense in 2022 was MNOK
4,593 compared to MNOK 4,016 in 2021. EBITDA
Adjusted for the year increased by 26% to MNOK
1,938 from MNOK 1,534 in 2021. The operating
result in 2022 was MNOK 1,299 compared to a
negative result of MNOK -7 in 2021. The result after
tax was MNOK -1,118 compared to MNOK -1,136
in 2021. The booked equity for year end is MNOK
1,753.
1. Vision and Values
Solstad Offshore’s vision is to deliver industry-
leading sustainable operations to the global
offshore energy market. The four core values of
the Company are Safe – Reliable – Competent
– Responsible. These values are tools to create
a common culture and define how the Company
operates and interact with clients, suppliers,
Solstad Offshore ASA | Annual Report 202216
Contents
Annual Report 2022
partners, and colleagues.
2. The Company’s Activities
Solstad Offshore’s activities are primarily directed
towards the offshore markets for oil and gas and
renewable energy. During 2022, the operation
has been organized in four business areas; PSV,
AHTS, Subsea Construction and Renewable
Energy worldwide. The Company’s headquarter is
located in Skudeneshavn, Norway with offices in
Ålesund, Aberdeen, Rio de Janeiro, Macae, Perth,
Singapore, Manila and Odessa.
The Company’s operating income in 2022 was
divided into 34 percent (2021: 39 percent) from
Subsea Constrution, 16 percent (11 percent) from
Renewable Energy, 27 percent (27 percent) from
PSV and 23 percent (23 percent) from AHTS.
Furthermore, the regional split of the income was
49 percent (45) from the North Sea, 21 percent (6)
from South America, 7 percent (12) from Africa,
4 percent (3) from North and Central America, 4
percent (4) from the Mediterranean part of Europe,
10 percent (23) from Australia, and 6 percent (8)
from Asia.
As per 31 December 2022, the Company owned
and/or operated a total fleet of 86 vessels, of which
80 were in operation: 26 CSVs, 15 AHTS’ and 39
PSVs. The overall utilization for the operational
fleet in 2022 was 88% (85% in 2021). The CSV fleet
had a utilization of 88% (84%), AHTS fleet 78%
(81%) and PSV fleet 92% (89%).
Subsea Construction and Renewable
Energy
The CSV segment includes 26 vessels, whereof
one vessel was in layup at year-end 2022. The
CSV vessels are designed and equipped to support
a wide range of offshore services within oil and gas
and renewable energy projects. During 2022, the
fleet has successfully been involved in projects
both within renewable energy and oil and gas. This
includes geotechnical work, walk to work-services,
grouting, SURF operations, cable laying and repair,
trenching and burial, ROV support, installation of
subsea equipment, survey work, IMR operations,
node seismic operations, diving, and topside
maintenance work. Geographical areas of operation
include Asia, South America, West and East Africa,
North Africa, Europe including Mediterranean and
Gulf of Mexico. In 2022 renewable energy projects
represented 33% of the CSV revenue, 67% of the
revenue originate from oil and gas activity. The
company has also signed new contracts for the
CSV segment in most of the aforementioned areas.
The client portfolio for the CSV fleet includes a mix
of energy companies such as subsea construction
companies, wind turbine manufacturers, cable
companies and seismic companies.
AHTS & PSV
The fleet of AHTS’ counts 20 vessels of which
15 are operational and 5 in layup. The PSV fleet
includes 39 vessels, all in operation. The majority
of the fleet’s operation is taking place in the North
Sea, Australia, Brazil and West Africa, with a mix
of projects, spot, medium and term contracts. The
local presence in the most important hubs for OSVs,
combined with the size of the fleet, gives Solstad
flexibility and ability to locate and re-locate vessels
between the various markets. Activities within oil
and gas remains the most important activity for
AHTS’ and PSVs. However, the Company has also
been involved in projects with renewable energy
and fish farming. It is expected that work related
to renewable energy offshore will become more
important going forward, which in combination with
high activity within oil and gas gives Solstad strong
reasons to expect a period with high activity for the
fleet going forward.
Technical & Projects
Throughout the year, 16 dry-dockings and 16 larger
maintenance stops were completed. The largest
project in 2022 was the conversion of Normand
Clipper back to cable layer. Two vessels were
reactivated from long time layup. Two vessels were
installed with battery. A total of ten vessels are now
equipped with batteries. The technical uptime for
the year was 98,84%.
HSE & HR
HSE results ended with a TRCF at 1.24 (1.19 in
2021). This is above the 1.10 TRCF target for the
year.
By the end of the year, total number of seafarers
counted 3,079. Retention rate per region / nationality
is relatively stable and corporate retention was at
94% affected by some lower retention on Nordic
crew. Post Q1 2022, the Covid-19 impact on both
seafarers and the crewing department reduced.
The working environment, onshore and onboard
the ships, is considered satisfactory. Sick leave
onshore was 1.8% in 2022, up from 1.6% in 2021.
Vessel Divestment in 2022
In 2022, Solstad Offshore completed divestment
of 16 vessels, primarily the smallest and less
modern vessels: 7 PSVs and 9 AHTSs. Thirteen
vessels were divested in line with the restructuring
plan for the company, in addition to three strategic
vessels. The sale of the 13 vessels concludes the
divestment of non-strategic vessels whereof one
of the 37 non-strategic vessels has been put into
operation. Warrants are exercised in accordance to
the restructuring agreement 20 October 2020.
3. The Market
Oil and Gas
Demand for vessels continued to increase
throughout the year, with new projects driving the
demand on a global basis. With a fairly stable
supply side, the utilization grade for the vessels has
increased and by that also the commercial terms.
There is a tendency towards that clients will secure
access to vessels and thereby are willing to offer
longer contracts than we have seen the last years.
Oil and gas clients account for about 84% of the
revenue in Solstad. As this industry is expected
to be active going forward, it is also likely that the
main part of the revenue in Solstad will come from
oil and gas. This being said, the Company’s vessels
are also suitable for development of offshore wind,
mainly relevant for the CSVs, but as floating wind
develops, this might also extend to the AHTS fleet.
The main geographical oil and gas market for
Solstad are still the North Sea, Brazil and Australia.
Renewable Energy
The renewable market, and in particular offshore
wind, continued its growth momentum in 2022,
with Europe, USA and South East Asia as the main
markets.
The market is driven by political ambitions to
increase energy production from renewable
sources to reduce carbon emissions.
The Company’s fleet and competence will be
central in the energy transition. Both the CSV and
the AHTS will be utilized in the floating wind market.
Solstad can take on a wider scope of work through
the Windstaller Alliance or by doing more traditional
timecharter contracts.
In 2022 about 16% of operating income came from
renewable energy projects versus 11% in 2021.
4. Corporate Particulars
As of 31 December 2022, the number of
shareholders was 10,919 whereof total international
shareholding was approximately 14%. The largest
shareholders, Aker Capital AS, DNB Markets
Aksjehandel/-analyse and Interactive Brokers LLC
AS, held 24.84%, 9.55% and 5.89% respectively.
50%
55%
60%
65%
70%
75%
80%
85%
90%
95%
100%
Q4-21 Q1-22 Q2-22 Q3-22 Q4-22
AHTS PSV CSV Average
Fleet Utilisation
Solstad Offshore ASA | Annual Report 202218
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5. Corporate Governance
and Management
Solstad Offshore ASA’s governance and
management adheres to the Company’s vision
and values. The Company is listed on the Oslo
Stock Exchange and is subject to the Norwegian
companies act, accounting act and stock exchange
listing and securities trading legislation. Solstad
Offshore ASA adheres to the Norwegian Code of
Practice for Corporate Governance, which was
last revised on 14 October 2021. More information
on corporate governance is given in the separate
chapter in the annual report and on www.solstad.
com.
The directors and officers of Solstad Offshore ASA
are covered under a “Director and Officer Liability
Insurance”. The insurance covers personal legal
liabilities including defence and legal expense. The
officers and directors of the parent company and all
subsidiaries globally are covered by the insurance.
The cover also includes employees in managerial
positions or employees who serves as Directors
in non-subsidiaries to safeguard the interest of the
Company.
6. Financial Position and
Development - the Group
The financial statements for the Company for 2022
are prepared in accordance with International
Financial Reporting Standards “IFRS”, as adopted
by the European Union.
Operating income in 2022 was MNOK 6,500
compared to MNOK 5,418 in 2021. The increase
from 2021 is mainly driven by improved utilization,
higher day rates, and strengthened sales of
additional services in line with the Company’s
strategy towards the high-end market.
Operating expenses in 2022 amounted to MNOK
4,593 compared to MNOK 4,016 in 2021. Adjusted
EBITDA for the year was MNOK 1,938 compared
to MNOK 1,534 in 2021. Operating result before
financial items and tax was MNOK 1,299 compared
to MNOK -7 in 2021, including net-impairments of
fixed assets of MNOK -556 (reversal) compared to
MNOK 45 in 2021.
Cash flows from operating activities amounted to
MNOK 1,446. Operating result amounted to MNOK
1,907. The difference is mainly related to timing.
Cash flow from investing activities amounts to
negative MNOK 123. Sale of vessels has reduced
the net cash outflow from investments with MNOK
450. Investments are mainly related to periodic
maintenance and installation of battery packages,
and minor investments done to be able to fulfil a
contract with custemors. Cash flow from financing
activities amounts to negative MNOK 1,647. This is
mainly related to interest payments and repayment
of loan following sales of vessels.
Company result after tax for 2022 was MNOK -1,118
(MNOK -1,136 in 2021). Net financial items for
2022 were MNOK -2,312 (MNOK -1,103 in 2021).
The change from 2021 to 2022 is mainly due to
unrealised foreign exchange effects and increased
interest rate levels.
Net earnings per share were NOK -14.53 (NOK
-15.13 in 2021). Operating result before depreciation
and impairment amounted to 29% of income
compared to 26% in 2021. Booked equity per
31.12.2022 was MNOK 1,753 (MNOK 3,083 in 2021)
i.e. NOK 22.68 per share (NOK 40.78 per share in
2021). Interest bearing debt as of 31.12.2022 was
MNOK 23,287 (MNOK 20,718 in 2021), whereof
MNOK 2,608 (MNOK 2,913 in 2021) is classified
as current liabilities. The interest-bearing debt has
the following currency split, 27% (31) NOK and
73% (69) in USD. Overview and details of amounts,
interest rates, maturity and main covenants are
included in the account notes 5 and 6. At year-end,
the Company held MNOK 2,170 in cash deposits
(MNOK 2,459 at year-end 2021). The cash at year-
end includes an MNOK 1,494 (MNOK 1,496 at
year-end 2021) working capital facility provided as
a part of the restructuring agreement.
7. Health, Environment, Safety
and Quality Assurance
The Company operates in accordance with
international regulations and standards and is
certified to ISM, ISO 14001:2015, ISO 9001:2015,
ISO 45001:2018, ISO 50001:2018, MLC (Maritime
Labor Convention) and ISPS (International Ship
and Port Facility Security). The crews are trained
according to the Company’s procedures and
approved pursuant to the requirements of the
STCW 10 (Seafarers Training, Certification and
Watchkeeping Code). Internal audits are carried
out on all ships and offices on an annual basis. The
common management system (Solstad Internal
Management System - SIMS) includes overall
objectives and policies for the Company. Further,
it describes the various processes and activities to
be performed and each employee’s responsibilities/
roles related to these.
A vital part to understand and improve safety is to
focus on preventative measures to avoid injuries
and operational accidents or interruptions. In 2022,
37,786 HSE reports were recorded and processed
at different levels in the organization. Conclusions
from analyses are used as basis for further
preventative measures to avoid future accidents.
Overall, the Company had four work-related
lost-time injuries that provide an TRCF (Total
Recordable Case Frequency, recordable injuries
per 1 million working hours) of 1.24 for 2022 (1.19
in 2021). The goal of no incidents is maintained for
2023, and the Company focuses on the evaluation,
facilitation, planning and preventative work to avoid
all kinds of personnel-related injuries and incidents
with adverse effect on the environment. Based
on positive experience, the Company continue
to develop and improve the safety behaviour and
culture program “Solstad Incident Free Operations”
(SIFO). Over the period that the program has been
implemented the number of incidents was reduced
by involving the crew and increasing their focus
on safety in their daily work. SIFO is a long-term
program and it will realistically take 2-3 years to get
properly implemented.
A cornerstone on the Company’s fuel and emission
reduction programme is Solstad Green Operations.
Crew support is still high and reached the KPI level
of 20 operations per vessel per month. In 2022, one
of our main goals was to upgrade three vessels with
battery hybrid systems. We managed to upgrade
two vessels - Solitaire and Ocean - both with good
results and very positive feedback from our clients.
A total of ten vessels have now been upgraded with
battery and additionally another nine vessels with
shore power. Another goal for the year was to start
using liquified bio gas (LBG) on one vessel, but this
did not materialize due to a combination of lack of
available gas and the associated cost level.
The fleet had 147 litres of oil spills to the environment
during the year. Even though the goal is zero spill
this is one of the best annual results.
The Company has a program for sorting and
reporting of all waste, covering both ship and
onshore organizations. An extensive program has
been initiated to reduce the use of single use items
such as plastic water bottles, cutlery, plastic cups
etc.
A major milestone during the year was that
the Company managed to join an international
consortium and win a large EU grant for the
development of improved marine battery systems
(MEUR 2.6 in funding to Solstad).
The Company’s onshore administration consists of
193 men (58%) and 138 women (42%). Out of a total
of 3,079 marine crew at year-end, only 187 were
women (6%). The Company focuses on diversity
and has equal opportunities for all employees,
regardless of their ethnic background, nationality,
descent, color, language, religion, lifestyle or
Top 10 as of 31.12.2022 Number of shares Ownership
Aker Capital AS 19,206,002 24.84 %
DNB Markets Aksjehandel/-analyse 7,379,541 9.55 %
Interactive Brokers LLC 4,550,647 5.89 %
Skandinaviska Enskilda Banken AB 3,750,000 4.85 %
Jarsteinen AS 3,197,779 4.14 %
Magne Hystad 1,235,000 1.60 %
The Export-Import Bank of China 1,13 9,842 1.47 %
Nordnet Livsforsikring AS 1,057,775 1.37 %
Sparebanken Møre 978,598 1.27 %
Morten Østdahl 788,526 1.02 %
Minority shareholders (<1 %) 34,024,899 44.01 %
77,308,609 100 %
Solstad Offshore ASA | Annual Report 202220
Contents
Annual Report 2022
gender. The Company will select and appoint the
most suitable person for a position based on their
attitude, skills and qualifications. The Company
takes part in recruitment and training of cadets/
trainees and participates in measures towards
encouraging young people to involve in maritime
education. The Company received an award as
“Maritime Training Company of the Year 2022” in
Norway, due to its focus on competence including
the successful adult training program launched
during this year.
8. Market Outlook
The outlook for offshore energy activities continue
to strengthen. Driven by energy prices, energy
security issues and bold ambitions to increase
energy production from renewable energy sources,
the offshore energy markets ended 2022 strongly
with both high tender activity and a substantial
amount of contract awards. The demand for
Solstad’s services continues to increase and the
company enters 2023 with a good balance between
secured backlog and available capacity.
Even though Solstad’s CSVs were originally built
for the oil and gas markets, the vessels are already
in demand from renewable energy clients and as
floating wind continue to develop, it is expected
that the AHTSs also will be a central part of the
installation of offshore wind parks. Except for
vessels dedicated to offshore wind support, there
are few new vessels under construction, meaning
that all activity increase has to be supported by
the vessels that already in operation. This should
give a continued positive effect on utilization and
commercial terms for the high-end-fleet during the
coming year.
In some regions, there are seasonal variations
in activity. The North Sea is one example where
less planned work is conducted during the winter
months. As global activity continues to improve,
these seasonal variations could be less going
forward.
9. Risk
The company is exposed to market, commercial,
operational, regulatory and financial risks that
affect the assets, liabilities, available liquidity, and
future cash flows. In addition there is a inherent
refinancing with maturity of the main portion of the
external debt end of March 2024.
One of the key commercial risks for Solstad is
the cyclical oil and gas markets that the company
operates in, with high volatility in charter rates,
vessel values and consequently profitability.
Charter rates have increased during the year, after
a long period of suppressed rates due to market
imbalance. Factors affecting this are partly outside
Solstad’s control and influence.
Operational risks such as technical breakdown,
grounding and malfunction of equipment are partly
mitigated by insurance. In addition, there are
operational risks out of the company’s control such
as Covid-19 and the war in Ukraine.
Solstad is exposed to interest rate and currency
risk, primarily through financing and contracts.
Interest rate risk is mainly due to long-term debt
with floating interest. With a substantial portion of
the mortgaged debt in USD, currency exchange
fluctuations can have a significant effect on the
company’s profit and loss, debt and consolidated
booked equity.
A risk mitigation framework has been established
based on identifying, assessing, and managing
risks affecting the Company. The board of Solstad
monitors the overall risk factors for the Company.
Market Risk
Market and operational risks are changes in the
demand and prices of the services provided by
the Company, and potential adverse effects of the
provision of such services. The market has steadily
improved during 2022 from the weak starting point,
despite Covid-19 still affecting regions where
Solstad operates. The Company has avoided
significant operational disruptions caused by
Covid-19.
Risk Related to the Ongoing Invasion of
Ukraine
In February 2022, Russian armed forces invaded
Ukraine. The Company is present in Ukraine with an
office that manages crewing services and employs
approximately 400 Ukrainian crew. The outcome of
the invasion of Ukraine remains uncertain. None of
the Company’s vessels have been forced to off-hire
due to the situation, but there is a risk that crew
changes and crew availability will be challenging as
long as the war persists. The management team is
handling the event and its development proactively,
including sanctions and direct and indirect impacts.
Cyber security risk has increased compared to
2021, partly driven by the war in Ukraine.
Safety and Environmental risks
There are inherent safety and security risks related
to operations at sea. As one of our core values,
safety is always in front of mind for all employees,
which is materialized through the Solstad Incident
Free Operations (SIFO) program. The Company
focuses on evaluation, facilitation, planning and
preventive work to avoid all type of personnel
related injuries and incidents that have an adverse
effect on the environment.
The environmental risks mainly relates to the
vessels and includes risks such as oil spillage.
Key performance indicators are monitored, and
cause analysis performed with mitigating responses
if possible undesired events are identified.
For further information, reference is made to the
Sustainability Report.
Climate Risk
The Company’s business and results of operations
could be adversely affected by climate change
and the adoption of new climate change laws,
policies, and regulations. Growing concerns about
climate change and greenhouse gas emissions
have led to the adoption of various regulations and
policies, including the Paris Agreement negotiated
at the 2015 United Nations Conference on Climate
Change (COP 21).
Climate risk is part of the Company’s risk universe,
and the Company is exposed to a variety of climate
risks. These risks vary from regulatory, transitional,
market, technology to reputational risk. Short
and medium-term climate change issues are not
expected to have any significant effect on Solstad’s
OPEX. Higher fuel price due to CO2 levies or
the cost of green fuels will for the most part be
forwarded to our clients. Solstad focus mainly on
reduction of carbon emissions from the fleet and to
grow and pursue new business opportunities within
the renewable segments. Risks and opportunities
are classified as short, medium or long term
based on how effects of climate change affect
the Company, and required actions consequently
planned. The Company’s own initiatives to improve
energy efficiency are important towards reaching
the 50% emission reduction target, and net zero
in 2050. At the same time we must acknowledge
that the targets require access to technology still
under development, and extensive investments in
both existing vessels and in fleet renewal. A fast
decraese in the market demand for the existing
type of vessels may pose a risk to Solstad, but as
there are very limited newbuild or other alternatives
available globally over the next five to eitght years,
this risk will be limited.
The Company aims to be transparent in its
sustainability reporting and work continuously
on public ESG communication to ensure that
all stakeholders understands that the ongoing
transition is under control and to mitigate the risk
for any negative publicity and/or liability issues.
For further information, reference is made to the
Sustainability Report.
Financing Risks
The main portion of Solstad’s external debt will
mature March 2024 and therefore it is an inherent
refinancing risk. A refinancing is dependent on how
the OSV market- and the oil and gas prices develops
and other factors such as financing capacity for
the OSV segment. The Company has engaged
a consulting firm to facilitate an independent
analysis of Solstad’s debt service ability. A failure
to refinance by the end of March 2024 will have a
material adverse effect on the financial situation
of the Group and Company. Dependent on the
outcome of the refinancing process and the
Company’s debt service ability, this may lead to a
need for adjustments of the capital structure.
Normand Maximus
Reference is made to the Company’s 2Q 2022
report, section Financial Summary. The transaction
whereby the Company’s leased vessel, the CSV
Normand Maximus was sold from its owner
Maximus Limited to AMSC ASA was completed in
the 4Q 2022 and the vessel was delivered to its new
owner. Consequently, the residual claim against the
Company’s subsidiary Normand Maximus Limited
has been finally determined and matures on 31
March 2024. The residual claim amounts to MUSD
161, and is included in the lease liability, with an
annual interest rate of 9.5%. The residual claim is
guaranteed by the Company. The residual claim
needs to be refinanced within the maturity date. As
the residual claim is guaranteed by the Company,
a failure to refinance the residual claim will have a
material adverse effect on Solstad Offshore ASA’s
financial situation. Further, the vessel has been
delivered to a subsidiary of the Company under
Solstad Offshore ASA | Annual Report 202222
Contents
Annual Report 2022
a bareboat agreement for a five-year firm period
and options for further 10 years with a subsidiary
of AMSC. The group thus maintains operational
control of the CSV Normand Maximus.
Further details refer to note 6 and 8.
10. Finance - Parent Company
The result for Solstad Offshore ASA in 2022 was
MNOK 252 (MNOK 92 in 2021). The net financial
result of MNOK 251 (MNOK 92 in 2021) is mainly
related to effects from the financial restructuring
of the Company. Operating result was of MNOK 1
(MNOK 0.2 in 2021).
The Company’s assets are mainly related to the
value of shares in subsidiaries. Booked equity at
year end was MNOK 679 (MNOK 422 in 2021).
The long term debt at the same date was MNOK 1
(MNOK 2 in 2021).
11. Going Concern
The annual accounts are prepared on the
assumption of a going concern. The going concern
assumption until end of March 2024 is based on the
level of cash and cash equivalents and equity at
year end 2022, terms and conditions of the banking
and borrowing facilities, the forecasted cash flow
prognosis for the Group and the solid backlog
position as of 31 December 2022.
Estimates shows that there is sufficient liquidity in
the Company until final maturity of the fleet loan
and Maximus residual claim due end-March 2024.
The fleet-loan agreement includes a mechanism for
deferring 2023-installments. The Company does
not expect to settle first instalment of the fleet-loan
31 March 2023.
The Group has seen continued strengthening of
the marked during the year despite of a challenging
macroeconomic environment. With an expected
continued strong energy market, and the high focus
on energy transition, we also expect an active
offshore marked in the coming period. Due to the
macroeconomic environment, we see increase in
expenses due to inflation and increased interest
expenses for the Group.
The Group has started the process with refinancing
and this process will continue in the coming period
until maturity of the main portion of the external
debt. The strategic move of divesting PSV business
line strengthens Solstad’s balance sheet, debt
service ability and liquidity. A failure to refinance by
the end of March 2024 will have a material adverse
effect on the financial situation of the Group and
Company. Dependent on the outcome of the
refinancing process, this may lead to a need for
adjustments of the capital structure.
12. Subsequent events
Contracts
The Company has increased its order intake with
approximately MNOK 1,300 during 1Q 2023. The
new contracts are from all business segments.
Sale of Vessels
The sale of CSV, Normand Jarl, in February 2023
resulted in a gain of approximately MNOK 450. In
addition two vessels classified as strategic in 2023
were sold, one PSV and one AHTS resulting in
minor positive accounting effects.
Divestment
The Company has signed an agreement with U.S.
based Tidewater Inc., dated 7 March 2023, for the
sale of 37 PSVs. The transaction is considered a
strategic repositioning of the Company as one of
the main global owner and operators of high-end
tonnage of AHTS and subsea vessels. Refer to
Note 29.
Redelivery of bareboat
The Company has since October 2020 chartered
the vessels “Far Senator” and “Normand
Statesman” on bareboat terms. Ocean Yield ASA
has exercised its right under the bareboat charters
to have the vessels redelivered. The vessels will
thus be redelivered to their owner at the end of their
current commitments.
13. Profit & loss allocation
The Board proposed that the following distribution
is made for the parent company:
Transfer from other equity NOK 251,573,743
Net applied/transferred NOK 251,573,743
Harald Espedal
Chairman
Thorhild Widvey
Director
Ellen Solstad
Director
Ingrid Kylstad
Director
Lars Peder Solstad
CEO
Peder Sortland
Director
Frank O. Reite
Director
Board of Director in Solstad Offshore ASA
Skudeneshavn 30 March 2023
Affirmation by the Board and Managing Director
We hereby affirm that, to the best of understanding, the Annual Accounts for the period 1st January to 31st December 2022
have been prepared in accordance with current accounting standards; and that the information in the accounts represents a
true and fair view of the Company’s and the consolidated group’s assets, liabilities, financial position and overall performance.
We further affirm that the Annual Report provides a true and fair view of the development, earnings and standing of the
Company and the consolidated group; outlining the most important risk factors and uncertainties facing the group.
Solstad Offshore ASA | Sustainability Report 2022
24
Sustainability Report 2022
Contents
Plastic Bottles
The reduction of single-use water
plastic bottles in 2022 ended at 31%,
corresponding to 72,000 bottles, which lead
to a CO2 reduction of 9.1 tons. From 2023,
these items have been removed from the
provisions ordering lists and are now only
used in special operations.
Sustainability highlights 2022
Safety
At Solstad, our goal is to have zero injuries. In 2022, the Total Recordable Cases Frequency
(TRCF) was record low with 1.24, and of four Lost Time Incidents (LTI) were recorded.
Emissions
The total eet CO2 emissions increased by 1% in 2022 to 720,101 tons compared to 711,552 tons in 2021.
The increase was mainly due to higher operational activity and more vessels in operation.
The average eet CO2 emissions per vessel day was on the same level in 2022 as in 2021. Even though
higher activity is seen as positive, this often results in longer transits for some vessels between regions, less
days idle, and more demanding dynamic positioning (DP) work for the CSV and AHTS vessels. The result is
higher total net CO2 emissions, and it is key that our vessels focus on Solstad Green Operations (SGO) to
limit fuel consumption. The KPI of 20 SGO’s per day per vessels was achieved in 2022.
Oil Spills
In Solstad, our goal is to have zero spills.
In 2022, we saw a decrease the numbers
and volume om oil spills to the environment
despite increased operational activity. We
had 153 liters of spills in 2022, compared
to 293 liters and 348 liters of spills in 2021
and 2020, respectively.
Diversity and
Inclusion
Currently, 6% of Solstad’s
seafarers are women, compared
to 5% in 2020, and we had a
44% increase in the number of
female seafarers during the year.
For the onshore organization, the
total of female managers is at
22%, with a target to reach 35%
by 2030.
9,09
12,19
8,69
8,35
6,23
6,29
2,76
4,34
3,36
3,81
2,48
3,70
2,62
4,05
1,98
1,41
1,69
1,84
1,80
1,65
1,28
1,19
1,24
0,00
2,00
4,00
6,00
8,00
10,00
12,00
14,00
0
2 000 000
4 000 000
6 000 000
8 000 000
10 000 000
12 000 000
14 000 000
16 000 000
18 000 000
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
TRCF
Working hours
Total Recordable Case Frequency (TRCF)
0
50 000
100 000
150 000
200 000
250 000
2020 2021 2022
0
5
10
15
20
25
30
35
40
PSV AHTS CSV Fleet
Quarterly Avg tCO2 per vessel/day
Emission CO
₂₂
per day per vessel
2019 2020 2021 2022
0
100
200
300
400
2020 2021 2022
78 %
22 %
Onshore Managers
Male Female
94 %
6 %
Offshore crew
Male Female
Solstad Offshore ASA | Annual Report 202226
Contents
Annual Report 2022
Corporate
governance
The Board of Directors (the “Board”) of Solstad
Offshore ASA (“Solstad” or “the Company”)
is responsible for ensuring that the Company
is organized, managed and controlled in an
appropriate manner in compliance with applicable
laws and regulations. It is the Board of Directors’
view that compliance with generally accepted
corporate governance guidelines is important as it
contributes towards reduced risk, desired conduct,
and fair treatment of all stakeholders.
The Board of Directors therefore considers
compliance with generally accepted corporate
governance guidelines as an important prerequisite
for long-term value creation. The company strives
to ensure that its internal control mechanisms,
organisation and management structures comply
with good corporate governance principles.
Solstad seeks to comply with the Norwegian
Code of Practice for Corporate Governance the
“Corporate Governance Code” or “the Code”), last
revised 14 October 2021, which is available at the
Norwegian Corporate Governance Committee’s
website www.nues.no. The principal purpose of the
Corporate Governance Code is to ensure (i) that
listed companies implement corporate governance
that clarifies the respective roles of shareholders,
the board of directors and executive management
more comprehensively than what is required by
legislation and (ii) effective management and
control over activities with the aim of securing
the greatest possible value creation over time
in the best interest of companies, shareholders,
employees and other parties concerned.
The following statement explains how Solstad
addresses the 15 topics defined in the Corporate
Governance Code.
1. Implementation and Reporting
The Board is aware of its responsibility for
implementation of internal procedures and
regulations to ensure that the Company and its
subsidiaries comply with applicable principles for
good corporate governance in line with Norwegian
and applicable international standards.
Good corporate governance is an integral part of
the decision-making process in matters dealt with
by the Board. Governing structures and controls
help to ensure that the policy is enacted upon. The
work of the Board of Directors is based on defined
division of roles and responsibilities between
the shareholders, the Board and management.
Solstad has implemented specific set of rules and
procedures for the Board of Directors, constituting
the governance structure and administrative
procedures for their work.
According to Solstad’s own evaluation, the
Company deviates from the Corporate Governance
Code on the following points:
• Section 6: Solstad deviates from the
recommendation to have all Board members
present at the General Meeting as the
company deemed it satisfactory to require the
presence of the chairperson of the Board, the
chairperson of the nomination committee, the
auditor, and the CEO. Solstad also deviates
from the recommendation to establish routines
for appointment of an independent person
to chair the General Meeting, however the
General Meeting’s agenda allows shareholders
to nominate an independent chair.
• Section 14: Due to the unpredictable nature of a
take-over situation, the Company has decided
not to implement detailed guidelines on take-
over situations. In the event of a take-over, the
board of directors will consider the relevant
recommendations in the Corporate Governance
Code and whether the situation entails that the
recommendations in the Corporate Governance
Code can be complied with or not. In a potential
bid-situation, the Board of Directors will work to
inform shareholders and allow time to decide on
the offer. Furthermore, the Board of Directors
will issue a statement to the shareholders
with an assessment of the bid and a
recommendation of whether to accept it or not.
2. Business
Solstad is a world leading owner and operator of
offshore service vessels (OSVs), offering maritime
services to the global offshore oil and gas and
renewable energy industries. Solstad is a public
limited liability company organized under the laws
of Norway and subject to the provisions of the
Norwegian Public Limited Liability Companies Act.
The Company’s objective. as defined in its Articles
of Association, is shipping activities and any other
associated business, including the ownership
of shares and stakes in companies engaged in
corresponding or related business activities.
Solstad’s operations are based on cross border
trade, and interaction with people from many
countries and different cultures. The Company aims
to be a socially responsible operator and partner
wherever it conducts its business. It has adopted
guidelines for corporate social responsibility
(“CSR”), based on the principles of the UN Global
Compact about CSR related to human rights,
labour rights, social concern, environment and
climate issues, and anti-corruption.
In addition, Solstad annually publishes a
sustainability report where it presents the main
environmental, social and societal (ESG),
challenges the Company faces, and how it
approaches them. The defined material topics and
ESG priorities are integrated with the company’s
business strategy, and specific goals have been
identified to improve Solstad’s performance within
these areas.
To discuss and evaluate goals, strategy and risk
profile, the Board of Directors conducts an annual
strategy meeting, where the main purpose is to set
the long-term direction for the company.
A further description of Solstad’s operations,
goals, strategy, and risk profile is provided in
the Company’s annual report, which shows how
its operations and strategies are aligned with
objectives defined in the Articles of Association.
3. Equity and Dividends
The Company’s solidity is continuously assessed.
At year-end 2022, the Company’s equity amounted
to MNOK 1,753 and total assets were MNOK 26,019
– providing an equity-to-asset ratio of 6.8 percent.
The Annual General Meeting determines the
annual dividend, based on the Board of Directors’
proposal. The Company will not pay dividends for
the 2022 financial year.
At the Annual General Meeting, held on 30 May
2022, no authorization was given to the Board of
Directors to increase the Company’s share capital.
4.Equal Treatment of
Shareholders
Equal treatment of all shareholders of Solstad
Offshore ASA is a core governance principle.
Solstad has one class of shares and is listed on
Solstad Offshore ASA | Annual Report 202228
Contents
Annual Report 2022
Oslo Stock Exchange under the ticker “SOFF”.
All shares have equal rights, and each share
carries one vote at the General Meeting.
In situations where normal preferential rights
shall be deviated from, the Company’s Board of
Directors is proposed to prepare grounds for such
a decision in accordance with the Norwegian
Code of Practice for Corporate Governance and
shall present these to the General Meeting.
An authorization to the Board of Directors to
acquire treasury shares is normally contingent to
take place at Oslo Stock Exchange.
5. Shares and Negotiability
All shares in Solstad Offshore ASA are freely
tradable. The Company’s Articles of Association
set no limitations on transactions.
6. General Meeting
The interest of the Company’s shareholders is
exercised at the General Meetings The Annual
General Meeting is normally held in the month of
May or June. The 2023 Annual General Meeting
is scheduled for May 11
th
, 2023.
All shareholders with known address registered
in the Norwegian Central Securities Depository
(VPS) will receive an invitation to the General
meeting. According to the Articles of Association,
the notice and related documents should be post-
ed on the Company’s website and www.news-
web.no no later than three weeks in advance.
The Company endeavours to ensure that the
documents contain all necessary information to
enable shareholders to vote on all matters. In line
with article 7 of Solstad’s Articles of Association,
shareholders should register their attendance at
least two workdays prior to the General Meeting.
The Chairperson of the Board of Directors and
chairperson of the Nomination Committee
take part in the General Meeting, as does the
Company’s Auditor. Board members participate
at the General Meetings when specifically re-
quired. Solstad has not deemed it necessary to
require the presence of all members of the Board
of Directors at the General Meeting.
The Chairperson of the Board opens the General
Meeting. The General Meeting elects a person
to chair the meeting. Normally the chairperson
of Solstad Offshore ASA is nominated to chair
the General Meeting, however the General
Meeting’s agenda allows shareholders to nom-
inate an independent chair. In case particular
items on the agenda require such measures, the
Board of Directors will also consider nominating
an independent chairperson to lead the General
Meeting.
Shareholders who cannot attend the General
Meeting, may be represented by proxy and the
procedures for voting by proxy are described in
the notice. The proxy authorization form is de-
signed to allow shareholders to vote on individ-
ual items and individual candidates for election
or re-election. The agenda is determined by
the Board of Directors, according to article 6 of
Solstad’s Articles of Association. The minutes of
the General Meeting are published as a Stock
Exchange notice and on the Company’s website.
7. Nomination Committee
The Articles of Association states that the
Company shall have a Nomination Committee of
2-3 members, the final number to be decided by
the General Meeting.
The Nomination Committee shall propose
candidates to the Board of Directors and to
the Nomination Committee, and propose
remuneration of the Board of Directors and
members of the Nomination Committee. A
justification for a new candidate up for election
will include information on the candidate’s
competence, capacity and independence.
As part of its nomination process, the Nomination
Committee has contact with major shareholders,
the Board of Directors and the Company’s executive
management to ensure that the process takes both
the Board of Directors’ and the Company’s needs
into consideration.
The General Meeting will elect the members of the
Nomination Committee, including the chairperson,
set their remuneration, and set the guidelines for
the committee’s work.
The guidelines for Solstad’s Nomination Committee
stipulates that the majority of the committee should
be independent of the Board of Directors and the
Company’s executive personnel. None of the
members of the Nomination Committee should
simultaneously be a member of the Company’s
day-to-day management or the Company’s Board
of Directors.
The current members of the Nomination Committee
are Rune Lande (chair), Toril Eidesvik and
Owe Høines. The majority of the members are
independent of the Board of Directors and the
Company’s executive management.
The guidelines for the Nomination Committee,
and its contact details, are available on Solstad’s
website.
8. Board of Directors,
Composition, and Independence
Pursuant to Solstad’s Articles of Association, the
company’s Board of Directors shall consist of three
to seven members. The current Board of Directors
consists of six members, who have been elected by
the General Meeting.
Solstad strives to ensure that the Board of Directors
has a composition necessary to safeguard
the interest of the shareholders. The Board of
Directors considers its composition to be diverse
and competent with respect to expertise, capacity,
gender and diversity adapted to the company’s
objectives, main challenges and the common
interest of all shareholders. The Board of Directors
emphasizes the importance of efficiency as a
collegial body. The Board of Directors consists of
three men and three women.
The Board should be composed of Directors who
act independently of special interests, and the
majority of the Directors should be independent of
any major shareholder. As of 31 December 2022,
Solstad’s Board of Directors consists of Harald
Espedal (chair), Ingrid Kylstad, Frank O. Reite, Ellen
Solstad, Peder Sortland and Thorhild Widvey. The
majority of the members of the Board of Directors
are independent of the Company’s executive
personnel and material business contacts. Harald
Espedal, Ingrid Kylstad, Peder Sortland and
Thorhild Widvey are independent of the Company’s
large shareholders.
The Board of Directors does not include executive
personnel.
The Chairperson of the Board of Directors is elected
by the General Meeting.
Directors are elected for a two-year term. See the
annual report for a presentation of the Directors.
As of 31 December 2022, two of the six Directors
(Harald Espedal, directly and Ellen Solstad,
indirectly) owns shares in Solstad.
9. Work of the Board of Directors
The Board of Director has the overall responsibility
to oversee the organization, operation and
management of Solstad, whilst the CEO is
responsible for day-to-day management. Both
the Board of Directors and the CEO conduct
their work through established procedures where
responsibilities and administrative procedures are
outlined.
The procedures also state how the Board of
Directors and Executive Management shall handle
agreements with related parties, including whether
an independent valuation must be obtained. The
Board of Directors should also present any such
agreements in their annual directors’ report.
Solstad Offshore ASA | Annual Report 202230
Contents
Annual Report 2022
The Company maintains rules to ensure that the
Board of Directors and Executive Management
report to the Board in case of any direct or
indirect material interest in any contract signed
by the Company. If the chairman of the Board
of Directors is, or has been, personally involved
in matters of a material character, the Board’s
consideration of such matters will be chaired by
another member of the board.
In accordance with the Public Companies Act,
Solstad has an Audit Committee that is elected by
the Board of Directors. As of 31 December 2022,
Solstad’s Audit Committee consists of Frank O.
Reite (chair), Ingrid Kylstad and Peder Sortland.
All Audit Committee members are considered
independent of the Company.
The Board of Directors has considered but not
established a remuneration committee. Instead,
the Board of Directors resolves matters relating
to compensation paid to the executive personnel.
As a large majority of the Board members
are independent of the Company’s executive
personnel, it is the Board of Directors’ view that
it is a suitable body to help ensure a thorough
and independent preparation of matters relating
to compensation paid to the executive personnel.
The Board of Directors evaluates its own
performance and expertise on an annual basis.
The evaluation is submitted to the Nomination
Committee.
10. Risk Management and
Internal Control
The Board of Directors seeks through its
work to ensure that the Company maintains
good standards and further improvements of
internal control and appropriate systems of risk
management, considering the scope and nature
of the Company’s business, and the provisions
that govern the business. The Company
has established a system of operation and
administration that relies on work procedures and
job descriptions. The system also covers social
responsibility and ethical guidelines. There is a
commitment to quality assurance. The Board of
Directors receives information about operational,
administrative, and financial developments in
monthly reports. The Board reviews the corporate
strategy and the business plan annually, including
analysis of the Company’s risk exposure.
Exposure is monitored monthly through the
reports from the Administration. Procedures for
internal control is exercised according to the
adopted guidelines and reviewed with the auditor
and Board of Directors on an annual basis.
11. Remuneration of Directors
The remuneration of the Board of Directors is
determined by the General Meeting, based on
recommendation from the Nomination Committee.
The recommendation is normally linked to the
directors’ responsibilities, competence and time
commitment, taking the company’s size and
complexity into consideration. The remuneration
is in line with comparable companies in the
industry. The amounts involved are reported in
the annual report.
The remuneration of the Board of Directors is
not linked to the Company’s performance. The
directors do not have share options.
In cases where directors of the Board should
undertake significant additional work for the
Company, all directors will be informed and fees
shall be approved by the Board of Directors. The
fees are reported in the financial statements. All
transactions between directors or employees (or
companies that they represent or are associated
with) on the one hand, and the Company on the
other, are implemented in accordance with the
arm’s length doctrine.
12. Remuneration to
Executive Management
The remuneration of the CEO is determined by the
Board of Directors. The guidelines for remuneration
of the Executive Management are presented to
the General Meeting and remuneration guidelines
can be found on the Company website. A
Remuneration Report, which details remuneration
figures and principles for the Company’s Executive
Management, is published on Solstad’s website
annually. Executive Management remuneration
consists of three elements: Base salary, pension
contribution, and variable pay – bonus.
The company’s executive bonus system is designed
to promote performance in line with the company’s
strategy. The variable salary is determined by the
Company’s performance on a pre-defined set of
key performance indicators and is linked to the
Company’s priorities, defining clear deliverables
that are critical for the company’s future success.
The final executive bonus outcome is specifically
reserved as a matter for the Board of Directors. The
variable salary is limited to a specific percentage
share of the base salary.
13. Information and
Communication
The Company has a policy of treating all
shareholders and other market participants equally,
communicating relevant information on significant
developments of the Company´s business and
standing in a timely manner.
All information distributed to the Company’s
shareholders, including financial reports, is
published on Oslo Stock Exchange’s website
(www.newsweb.no) and the Company’s website
simultaneously. A financial calendar and other
shareholder information is available on the
Company’s website.
The board of directors has established guidelines
for the company’s contact with shareholders other
than through general meetings. These guidelines –
the “IR policy” – is available at Solstad’s website.
The Company seeks to adhere to the Oslo Børs
Code of Practice for Investor Relations.
14. Take- overs
The shares in the Company are freely tradable, and
the Articles of Association does not hold specific
defense mechanisms against take-over situations.
In a potential bid-situation, the Board will work
to inform Shareholders and allow time to decide
on the offer. Furthermore, the Board will issue a
statement to the Shareholders with an assessment
of the bid and a recommendation of whether to
accept it or not.
15. Auditor
The Auditor of the Company is elected at the
Annual General Meeting, which also approves its
remuneration. The Auditor sets out the highlights of
the audit plan to the audit committee annually. The
auditor also presents a report with its views and
observations regarding the accounting principles,
risk areas, internal control routines, and other
aspects. Furthermore, the Auditor will each year
deliver a written report to affirm its compliance
with certain impartiality and objectivity standards.
The Auditor attends Board Meetings to discuss the
financial statements for the year and attends the
Annual General Meeting.
Important consultancy work performed by the
Auditor requires prior approval by the Directors.
The remuneration to the auditor is reported in the
financial statements. Once a year, the Board of
Directors meets with the Auditor for discussions
without the CEO or other representatives from the
administration present.
Solstad Offshore ASA | Annual Report 202232
Contents
Annual Report 2022
Social Media
Highlights
2022
Solstad Offshore ASA | Annual Report 202234
Contents
Annual Report 2022
Maritime Training
Company of 2022
Solstad was honored to win the prize as Årets Maritime
Lærebedrift 2022 (Maritime Training Company of 2022)
as awarded by Stiftelsen Norsk Maritim Kompetanse.
Solstad has a tradition of offering training to young
people pursuing a maritime career, with a large
number of apprentices and cadets joining us every
year. With competence development in focus we
started an Ordinary Seaman program targeting adults.
In the program we offer 18-month training to people
with different backgrounds and ages, and at the
end of their practice they are fully qualified to work
as an able seaman in our industry. We hope many
can experience all the opportunities our industry
provides for all ages and genders. Through our project
“Women in Solstad” we also work systematically
in getting more women to join our Company!
In the picture you can see our HR Director Per Stange and Training Manager Liv Bente Mevik
accepting the prize on behalf of Solstad at the 29th National Maritime Summit in Haugesund
#solstadoffshore #wearesolstad #womeninsolstad #SIFO
Solstad Offshore, DeepOcean
and Østensjø team up in
remote operations venture
On 15th June 2022 Solstad decided to join forces with DeepOcean and Østensjø
Rederi to fast track the adoption of remotely managed services!
Together we have established two joint ventures (JVs) that will drive down
operating costs and emissions for the marine and offshore industries.
Remota AS will own and operate
advanced Remote Operations
Centers, while the other JV
will develop, own and operate
unmanned surface vehicles (USVs).
Solstad, DeepOcean and Østensjø
already have the technologies,
competence and assets in place,
but teaming up will further enhance
the capacity, growth prospects and
market penetration of our remote
operations offering. Operators
of offshore energy assets have
challenged the supplier industry
to deliver even more cost-efficient
services. This is our response,”
says Lars Peder Solstad,
CEO of Solstad Offshore.
Solstad Offshore ASA | Annual Report 2022
Contents
Annual Report 2022
36
Consolidated
Statement of
Comprehensive
Income
Group Accounts (NOK 1,000)
2022
01.01-31.12
2021
01.01-31.12
Note
Freight income 6,295,321 5,128,173 4,28
Other operating income 204,810 289,327 4
Total operating income 6,500,131 5,417,500
Personnel costs -2,288,609 -2,044,482 10,11,19
Administrative expenses -457,474 -449,509
Other operating expenses -1,846,600 -1,521,986 10
Operating expenses -4,592,684 -4,015,978
Operating result before depreciation and impairment 1,907,447 1,401,523
Depreciation -1,044,940 -993,053 7,8
Depreciation capitalised periodic maintenance -292,009 -271,098 7,8
Impairment fixed assets 555,958 -45,049 7,8
Net gain/loss on sale of assets 152,490 -99,730 7
Income from investment in joint ventures 20,418 247 13
Operating result 1,299,364 -7,159
Income from investments in associated companies 722 108 13
Interest income 47,152 10,295
Other financial income 12,113 173,405
Interest charges -1,404,972 -1,003,543
Other financial costs -967,504 -283,504
Net financial items -2,312,489 -1,103,239 9
Result before taxes -1,013,124 -1,110,398
Tax on ordinary result -104,679 -25,664 18
Net result -1,117,803 -1,136,062
Comprehensive income:
Translation adjustments foreign currency -218 660 -34,851
Comprehensive income that may be creclassified in subsequent periods -218 660 -34,851
Acturial gain /(loss) 947 -3,971 19
Comprehensive income that may not be reclassified in subsequent periods 947 -3,971
Total comprehencive income -1,335,516 -1,174,885
Net result attributable to:
Non-controlling interests -4,788 -33,613
Equity holders of the parent -1,113,016 -1,102,449
Comprehensive income attributable to:
Non-controlling interests -4,788 -33,613
Equity holders of the parent -1,330,728 -1,141,272
Earnings per share (NOK) -14.53 -15.13 16
Solstad Offshore ASA | Annual Report 2022
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38
Consolidated
Statement
of Financial
Position
(NOK 1,000)
2022
31.12
2021
31.12
Note
ASSETS
LONG-TERM ASSETS:
INTANGIBLE ASSETS:
Deferred tax assets 4,351 14,497 18
Contracts - - 28
TOTAL INTAGIBLE FIXED ASSETS 4,351 14,497
LONG-TERM FIXED ASSETS:
Vessels and new build contracts 16,814,184 17,386,500 7
Right-of use-assets 3,345,812 2,561,186 8
Capitalized periodic maintenance 789,537 677,518 7
Other tangible fixed assets 28,382 26,309 7
TOTAL LONG-TERM FIXED ASSETS 20,977,915 20,651,513
FINANCIAL ASSETS:
Investment in joint ventures 156,235 91,127 13
Loans to associated companies and joint ventures 55,829 47,506 17
Investments in associated companies 2,323 1,279 13
Investments in shares 2,991 2,991 13
Other long-term receivables 57,536 56,460 23
TOTAL FINANCIAL ASSETS 274,915 199,364
TOTAL LONG-TERM ASSETS
CURRENT ASSETS:
Inventory 228,197 173,041 25
Receivables:
Account receivables 1,232,487 816,745 5,24
Other short-term receivables 698,141 421,094 24
Total receivables 1,930,628 1,237,839
Investments:
Market based shares 21,000 15,200 9,13
Bank deposits and cash equivalents 2,170,072 2,459,027 5,20
TOTAL CURRENT ASSETS
Assets held for sale 412,052 187,200 7
TOTAL ASSETS
Solstad Offshore ASA | Annual Report 2022
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40
Consolidated
Statement
of Financial
Position
(NOK 1,000)
2022
31.12
2021
31.12
Note
EQUITY & LIABILITIES:
EQUITY:
PAID-IN EQUITY:
Share capital (77,308,609 a 1,-) 77,309 75,609 15
Treasury shares - - 15
Other paid-in capital - -
Share premium 180,387 176,927
TOTAL PAID-IN EQUITY 257,696 252,536
RETAINED EARNINGS:
Other equity 1,504,816 2,835,545
TOTAL RETAINED EQUITY 1,504,816 2,835,545
Non-controlling interests -9,387 -4,599 13
Total Equity 1,753,125 3,083,481
LIABILITIES
LONG-TERM LIABILITIES:
Deferred tax - -
Pension liabilities 20,381 25,864 19
Other financial liabilities 12,425 17,316
Other long-term liabilities 1,046 1,917
Interest bearing liabilities 16,637,362 17,523,945 5,6
Leasing liabilities 3,564,963 280,761 5,6,8
TOTAL LONG-TERM LIABILITIES 20,236,177 17,849,803
CURRENT LIABILITIES
Accounts payable 694,564 552,077
Taxes payable 228,409 176,767 18
Other current liabilities 499,053 362,640 26
Current interest bearing liabilities 2,460,689 446,592 5,6
Current leasing liabilities 147,113 2,466,321 5,6,8
TOTAL CURRENT LIABILITIES 4,029,828 4,004,397
TOTAL LIABILITIES
TOTAL EQUITY AND LIABILITIES
Harald Espedal
Chairman
Thorhild Widvey
Director
Ellen Solstad
Director
Ingrid Kylstad
Director
Peder Sortland
Director
Frank O. Reite
Director
Board of Director in Solstad Offshore ASA
Skudeneshavn March 30, 2023
Lars Peder Solstad
CEO
Solstad Offshore ASA | Annual Report 2022
Contents
Annual Report 2022
Share
capital
Treasury
shares
Share
premium
Other
paid-in
capital
Translation
adjust-
ments
Other
equity
Total
majoirty
shares
Non-
controlling
interests
Total equity
Equity 01.01.2022
Result
Actuarial gain/
loss (-)
Translation
adjustments
Total
comprehensive
income
Share capital
increase by
convertion of debt
Equity 31.12.2022
42
Consolidated
Statement
of Changes
in Equity
(NOK 1,000)
Equity 01.01.2021
Result
Actuarial gain/
loss (-)
Translation
adjustments
Total
comprehensive
income
Share capital
increase by
convertion of debt
Share capital privat
placement
Equity 31.12.2021
Solstad Offshore ASA | Annual Report 2022
Contents
Annual Report 2022
2022
31.12
2021
31.12
Note
CASH FLOW FROM OPERATIONS
Result before tax -1,013,124 -1,110,398
Taxes payable -31,561 -18,917 18
Ordinary depreciation and write downs 780,990 1,309,199 7,8
Gain (-)/ loss long-term assets -179,919 95,274 7
Interest income -47,152 -10,295
Interest expense 1,404,972 1,003,543
Terminated leases - -
Non-cash refinance effects -16,691 -91,102
Effect of change in pension assets -1,043 400
Change in value of financial instruments - -
Unrealised currency gain/ -loss 938,084 275,136
Change in short-term receivables and payables -269,181 34,843
Change in other accruals -119,563 -103,931
Net cash flow from operations 1,445,813 1,383,754
CASH FLOW FROM INVESTMENTS
Investment in tangible fixed assets -124,912 -72,654 7
Payment of periodic maintenance -488,011 -252,192 7
Consideration sale of fixed assets (vessels) 450,268 290,215
Payment of long-term receivables -8,029 820
Received interests 47,152 10,295
Realization of shares and holdings - -
Net cash flow from investments
-123,532 -23,515
CASH FLOW FROM FINANCING
Paid-in capital - -
Lease interests paid -233,521 -176,480 6
Lease instalments -28,246 -213,191 6
Paid interests -839,280 -531,847
Drawdown long-term debt - -
Repayment of long-term debt -546,117 -397,541 6
Net cash flow from financing -1,647,164 -1,319,059
Effect of changes in foreign exchange rates 35,929 5,942
Net change in cash -324,884 41,180
Cash at 01.01 2,459,027 2,411,905
Cash at balance sheet date 2,170,072 2,459,027
44
Consolidated
Statement
of Cash Flow
(NOK 1,000)
Solstad Offshore ASA | Annual Report 202246
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Notes
Notes to the Consolidated
Financial Statements
(NOK 1,000)
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In addition to reporting measures required under IFRS, the Company also use the following
alternative performance measures in the interim- and annual reports
Operating margin - Operating result before depreciation and impairment in percentages of total operating income
EBITDA - Operating result before depreciation and impairment adjusted for excess
values charter parties from mergers and operating leases
Adjusted EBITDA - Operating result before depreciation and impairment adjusted excess values
charter parties from mergers, operating leases and other non-cash related items
Adjusted Operating result before depreciations - Operating result before depreciation and impairment
adjusted excess values charter parties from mergers, operating leases and net result from Joint Ventures
Earning on equity - Result before tax, in percentage of average equity, including minority interests
Earning on capital employed - Operating result plus interest income and result from associated
company divided by average book shareholders’ equity and interest-bearing debt
Current ratio - Current assets divided by current liabilities
Equity ratio - Booked equity including minority interests in percentage of total assets
Earnings per share - Result for the period for the Group divided by weighted average
number of shares for the reporting period, adjusted for treasury shares
Comprehensive income per share - Comprehensive income for the period for the Group divided by
weighted average number of shares at the end of the reporting period, adjusted for treasury shares
Equity per share - Shareholders’ equity divided by outstanding number of shares at the end of the reporting period
Working capital - Current assets less current liabilities, including current portion of long-term debt
Interest-bearing debt - Current and long-term interest-bearing liabilities
Net interest-bearing debt - Interest-bearing liabilities less bank deposits
B2B - Book to bill, backlog less billed in period
Alternative Performance Measurements Definitions
Solstad Offshore ASA | Annual Report 2022
Contents
Annual Report 2022
90
Corporate
Accounts
for Solstad
Offshore ASA
Parent Company (NOK 1,000)
PROFIT OR LOSS ACCOUNT 2022
01.01-31.12
2021
01.01-31.12
Note
Other operating income 12 912 12 951
Total operating income 12 912 12 951
Personnel costs -3 115 -2 212 4
Other operating expenses -8 763 -10 523 4
Total operating expenses -11 878 -12 735
Operating result 1 034 216
Other interest income 6
Other financial income 257 680 97 948 5
Other interest charges - -
Other financial charges -7 145 -6 351 5,7
Net financial items 250 540 91 598
Ordinary result before taxes 251 574 91 813
Tax on ordinary result - - 8
Net result for the year 251 574 91 813
Transfer and disposable income
Transfer to/from other equity 251 574 91 813 9
Total transfer and disposable income 251 574 91 813
Solstad Offshore ASA | Annual Report 2022
Contents
Annual Report 2022
92
Balance
Sheet
Parent Company (NOK 1,000)
2022
31.12
2021
31.12
Note
ASSETS
FIXED ASSETS
FINANCIAL FIXED ASSETS:
Investment in subsidaries 830 082 575 228 6
TOTAL FINANCIAL FIXED ASSETS 830 082 575 228
TOTAL FIXED ASSETS
830 082 575 228
CURRENT ASSETS
RECEIVABLES:
Other short-term receivables 36 633 40 033 7
Total receivables 36 633 40 033
Bank deposits and cash equivalents 719 379
TOTAL CURRENT ASSETS
37 352 40 412
TOTAL ASSETS
867 434 615 640
Solstad Offshore ASA | Annual Report 2022
Contents
Annual Report 2022
94
Balance
Sheet
Parent Company (NOK 1,000)
2022
31.12
2021
31.12
Note
EQUITY & LIABILITIES:
EQUITY
RESTRICTED EQUITY:
Share capital (75,608,658 a 1,-) 77 309 75 609
Shared premium 180 387 176 927
TOTAL RESTRICTED EQUITY 257 696 252 536 9
EARNED EQUITY:
Other equity 420 993 169 420 11
TOTAL EARNED EQUITY 420 993 169 420
TOTAL EQUITY
678 689 421 956 9
LIABILITIES
OTHER LONG-TERM LIABILITIES:
Other long-term liabilities 1 046 1 917 13
TOTAL LONG-TERM LIABILITIES 1 046 1 917
CURRENT LIABILITIES:
Accounts payable 185 210 189 245 7
Other current liabilities 2 489 2 524
Total current liabilities 187 699 191 768
TOTAL CURRENT LIABILITIES
188 745 193 685
TOTAL EUQUITY AND LIABILITIES
867 434 615 640
Board of Director in Solstad Offshore ASA
Skudeneshavn Mars 30, 2023
Harald Espedal
Chairman
Thorhild Widvey
Director
Ellen Solstad
Director
Ingrid Kylstad
Director
Peder Sortland
Director
Frank O. Reite
Director
Lars Peder Solstad
CEO
Solstad Offshore ASA | Annual Report 2022
Contents
Annual Report 2022
96
Statement
of Cash Flow
Parent Company (NOK 1,000)
2022
31.12
2021
31.12
CASH FLOW FROM OPERATIONS
Profit / loss before taxes 251 574 91 813
Impariment of financial assets - -
Interest income -6 -
Interest expense - -
Non-cash refinance effects -250 565 -116 347
Unrealised currency gain/ -loss - -
Change in short-term receivables and payables -4 035 228
Change in other accruals 3 366 18 126
Net cash flow from operations 334 -6 179
CASH FLOW FROM INVESTMENTS
Investments in shares - -
Pamynet of long-term receivables - -
Deposal of shares - -
Net cash flow from investments
- -
CASH FLOW FROM FINANCING
Paid-in capital - -
Interest reiveiced 6 -
Interest paid - -
New / repayment of (-) long-term debt - -
Net cash flow from financing 6 -
Net change in cash and cash equivalents 340 -6 179
Cash and cash equivalents at 01.01 379 6 558
Cash and cash equivalents at 31.12 719 379
Solstad Offshore ASA | Annual Report 202298
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Notes
Notes to the Parent Company
Financial Statements
(NOK 1,000)
General
The annual accounts have been prepared in accordance with
the Accounting Act and best practice accounting principles
in Norway. The most important accounting principles are
described below.
Use of estimates
In the preparation of the accounts, estimates and assumptions
are used which affect the accounts. Actual figures may differ
slightly from the estimates.
Foreign currency
Monetary items in foreign currency are converted at the
exchange rate at the balance sheet date.
The following exchange rates have been used in the accounts:
GBP USD EUR
Per 31.12.22 11.854 9.857 10.513
Per 31.12.21 11.888 8.819 9.989
Cost of borrowing
The cost of borrowing is capitalized at the time of borrowing
and the cost is charged over the maturity period of the loan.
Evaluation and presentation of current assets stocks are valued
as the lowest of either the acquisition or the estimated sales
value. Receivables are ecorded at face value with deduction for
anticipated loss.
Financial fixed assets
Long-term investment in shares and other investments are
valued at the lowest of either the acquisition cost or the estimated
sales value if the reduction in the sales value is not considered
temporary.
Taxes / Deferred tax
Deferred tax/ deferred tax assets are calculated, using the
liability method, at 22% based on temporary differences
between the accounting and tax-related values existing at the
end of the financial year and any tax deficits are carried forward.
Temporary tax increases and decreases are recorded in the
balance sheet as net figures.
Classification of items in the accounts
Assets determined for long-term ownership or use and
receivables which are due more than one year after the expiry
of the financial year are recorded as fixed assets. Any remaining
assets are classified as current assets. Liability which is due
more than one year after the expiry of the financial year is
recorded as long-term debt.
Contingencies
Contingent losses that are probable and quantifiable are
recorded to the accounts, whilst contingent gain/income is not.
Shares and holdings in other companies
Short-term investments related to shares are not treated as a
trading portfolio and are valued at the lowest of cost price and
market value.
Shares in subsidiaries, associated companies and
jointly-owned companies
Shares in subsidiaries, associated and jointly-owned companies
are recorded in the parent company accounts at cost and written
down to the extent that there is a significant deficit value which is
not considered temporary.
Treasury shares
Treasury shares are recorded as a nominal value under the item
“share capital”. The difference between nominal and acquisition
cost is entered as “other equity”.
Cash flow
The Group applies the indirect method. Investment in shares
and other liquid assets with maturity over three months are not
included under cash equivalents.
Note 1 - Accounting Principles
Note 2 - Major Transactions/Events
Reference is made to Note 2 in the Annual Report for further information.
Note 3 - Financial Risk
The company is exposed to various financial risks in its activities. Financial risk is the risk incurred from any changes in currency and
interest rates together with counter parties ability to pay, and which impacts the value of the company’s assets, liabilities and future
cash flows.
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Note 4 - Other Expenses, Wages, Employees
and Distinctive Contributions
2022 2021
Wages and director fee 2 579 1,894
Employer’s National Insurance 351 311
Pension costs
Other benefits 1 2
Travelling costs, courses and other personnel costs 184 5
Total employee cost 3 114 2,212
Average number of FTEs 0 0
Renumeration to Directors, Managing director and Auditors
Auditors EY
2022 2021
Statutory audit 2,132 4,894
Other assurance services 927 -
Other non-audit services 627 6,285
Total 3,686 11,179
Audit fees relates to statutory audit of accounts. Other assurance services relates to services required by law. Other
non-audit services are fee for compliance services and restructuring process. Amounts are exclusive VAT.
There are no distinctive agreements regarding remuneration for the Chairman of the Board and
nor are there any distinctive bonus or option programmes for any Board Member.
Note 5 - Financial Items
Other financial income of MNOK 251 (MNOK 98) relates to convertion of debt to equity.
Other financial costs of MNOK 7 realtes to impairment of shares in subsidiary. Coparable figures for 2021 of MNOK 6 relates
to loss on receivables converted to shares in subsidiaries.
The Company had no employees in 2022 and 2021.
Board of Directors fee:
2022 2021
Harald Espedal 592 600
Frank O. Reite 419 406
Ellen Solstad 309 196
Peder Sortland 441 246
Ingrid Kylstad 392 246
Thorhild Widvey 260 196
Merete Haugli (until Q2 2020) 104
Anders Onarheim 25
Toril Eidesvik (until Q2 2020) 138
Note 6 - Shares in Subsidiaries
31.12.2022 Place of business
Owner- /
voting shares
Number of
shares
Nominal
value
Share
capital
Cost price /
book value
Solstad Shipholding AS Skudeneshavn 100 % 30 000 10 300 830 052
Solstad Ålesund AS Skudeneshavn 100 % 30 000 1 30 -
Solship Invest 3 AS Skudeneshavn 100 % 30 000 1 30 -
Solship AS Skudeneshavn 100 % 30 000 1 30 30
Total 830 082
The investment in Solstad Shipholding AS increased by MNOK 255 from convertion of debt to equity.
The investment in Solship Invest 3 AS was increased by MNOK 7 from convertion of debt to equity.
The investment in Solship Invest 3 AS was written down by MNOK 7 in 2022.
Note 7 - Inter Company Group
Solstad Offshore ASA had the following debt to companies in the Group:
31.12.2022 31.12.2021 Interest
Solstad Shipholding AS 36 633 40 033
Solstad Rederi AS
Other current assets 36 633 40 033
Solstad Shipping AS 113 251 117 281
Solstad Australia Pty Ltd 225 229
Solstad Management AS 29 750 29 750
Normand Drift AS 41 984 41 984
Account payable 185 210 189 245
31.12.2021 Place of business
Owner- /
voting shares
Number of
shares
Nominal
value
Share
capital
Cost price /
book value
Solstad Shipholding AS Skudeneshavn 100 % 30,000 6,66 200 575,198
Solship Invest 1 AS Skudeneshavn 100 % 30,000 1 30 -
Solship Invest 3 AS Skudeneshavn 100 % 30,000 1 30 -
Solstad Ålesund AS Skudeneshavn 100 % 30,000 1 30 -
Solship AS Skudeneshavn 100 % 30,000 1 30 30
Total 575,228
The investment in Solstad Shipholding AS increased by MNOK 118 from convertion of debt to equity.
Solstad Offshore ASA | Annual Report 2022102
Contents
Annual Report 2022
2022 2021
Taxable income
Result before tax 251,574 91,813
Changes in tempoary diferrences - -
Permanent differences -243,450 -91,593
Gain sale of shares - -1
Transferred to/from loss carry forward - 8,124 -219
Taxable income - -
Change in deferred taxes - -
Tax on ordinary result - -
Short-term receivables -2,000 -2,000
Unrecovered interest carried forward - -
Unrecovered loss carried forward -1,791,621 -1,799,745
Total temporart differences -1,793,621 -1,801,745
Calculated deferred tax asset 394,597 396,384
Unrecognized part of deferred tax asset -394,597 -396,384
Booked deferred tax asset - -
Analysis of effective tax rate:
22 % of Profit before Tax 55,346 20,199
Tax effect of dividends and gain/loss sale of shares -324,778 -
Deferred tax asset not recognised -322,991 -48
Tax effect of permanent differences -53,559 -20,151
Estimated tax - -
Note 8 - Taxes
Provisions for deferred tax are posted for accounting position where a future realization will result in payable taxes.
Note 9 - Equity, Shareholders and Treasury Shares
Share capital
Share
premium Other equity Total equity
Equity 31.12.2021 75,609 176,927 169,420 421,956
Share capital increase by
conversion of debt 1,700 3,460 - 5,160
Annual result - - 251,574 251,574
Equity 31.12.2022 77,309 180,387 420,993 678,689
At 31.12.22 the Company’s share capital represents 77,308,609 shares at NOK 1.
At 31.12.21 the Company’s share capital represents 75,609,658 shares at NOK 1.
The number of shareholders at 31.12.22 was 10,919 (7,248 at 31.12.21).
Number of shares Ownership
Aker Capital AS 19,206,002 24.84 %
DNB Markets 7,379,541 9.55 %
Interactive Brokers LLC 4,550,647 5.89 %
Skandinaviska Enskilda Banken AB 3,750,000 4.85 %
Jarsteinen AS 3,197,779 4.14 %
Hystad 1,235,000 1.60 %
The Export-Import Bank of China 1,139,842 1.47 %
Nordnet Livsforsikring AS 1,057,775 1.37 %
Sparebanken Møre 978,598 1.27 %
Østdahl 788,526 1.02 %
43,283,710 55.99 %
Shareholders with more than 1 % holding at 31.12.2022
Number of shares
Harald Espedal 656,687
Frank Ove Reite -
Ellen Solstad
-*
Thorhild Widvey -
Ingrid Kylstad -
Peder Sortland -
In accordance with the definition in corporate law, the Directors had the following holdings at 31.12.2022
*Shares held through Jarsteinen AS, which is a company owned by an investment company of CEO Lars Peder Solstad (60% ownership) and an
investment company of Ellen Solstad (20% ownership).
The Chief Executive Officer holds 3,197,779 shares at 31.12.2022 through Jarsteinen AS in addition to a right to subscribe 5,038,187
shares in the Company with a nominal value of NOK 1 per share. The subscription right expires 20.10.2023.
Fausken Invest AS, a company controlled by Frank O. Reite has entered into a put/call agreement with Aker Capital AS for a total of
356,509 shares in SOFF. Fausken Invest AS does not own shares directly.
Per 31.12.2022 the company holds 124 treasury shares at a cost price of MNOK 9.6.
Per 31.12.2021 the company holds 124 treasury shares at a cost price of MNOK 9.6.
Note 10 - Earnings Per Share
In 2022, earnings per share were NOK 3.27. The equivalent value in 2021 was NOK 1.22. Earnings per share is calculated by dividing
the company’s result by the average number of shares, adjusted for the stock of treasury shares. There are no instruments that
prevents the possibility of dilution.
Note 11 - Transactions with Related Parties
Related parties are considered to be Board Members (including associated companies) and the company management.
There are no management agreements with related parties outside the Group that charge management fees.
Note 12 - Guarantees
Solstad Offshore ASA has issued a Parent Company Guarantee of MNOK 20,454.
Solstad Offshore ASA | Annual Report 2022104
Contents
Annual Report 2022
Note 13 - Other Long-Term Liabilities
As part of the refinancing in 2020 Aker, Hemen and Jarsteinen issued convertible loans as an instrument to avoid dilution.
31.12.2022 31.12.2021
Aker Capital AS 882,693 1,244,782
Hemen Holding Ltd - 441,367
Jarsteinen AS 163,439 230,484
1,046,132 1,916,633
Note 14 - Other Long-Term Liabilities
The Group utilizes the indirect method. Investment in stocks and shares with a maturity of more than three months are not included
in the cash equivalents.
Solstad Offshore ASA | Annual Report 2022106
Contents
Annual Report 2022
Solstad’s Global Footprint
South Americas
(Brazil & Argentina)
5 AHTS | 5 PSV | 7 CSV
Oil & Gas
Americas
(USA, Mexico, Gulf)
2 AHTS | 1 CSV
Oil & Gas
Macaé
Brazil
Rio de Janeiro
Brazil
Offices
Aberdeen
United Kingdom
Asia Pacific
3 PSV | 1 CSV
Oil & Gas
Europe
4 AHTS | 26 PSV | 13 CSV
Oil & Gas, Renewable Energy, Cable
Asia Pacific
4 AHTS | 5 PSV | 4 CSV
Oil & Gas, Renewable Energy, Cable
Ålesund
Norway
Skudeneshavn
Norway
Odessa
Ukraine
Perth
Australia
Singapore
Singapore
Manila
Philippines
Limassol
Cyprus
Solstad Offshore ASA
Nesavegen 39
4280 Skudeneshavn
Norway
Postal address:
P.O. Box 13
4297 Skudeneshavn
Norway
Telephone: +47 52 85 65 00
Email: contact@solstad.com
www.solstad.com
Statsautoriserte revisorer
Ernst & Young AS
Thormøhlens gate 53 D, 5006 Bergen
Postboks 6163, 5892 Bergen
Foretaksregisteret: NO 976 389 387 MVA
Tlf: +47 24 00 24 00
www.ey.no
Medlemmer av Den norske Revisorforening
A member firm of Ernst & Young Global Limited
INDEPENDENT AUDITOR'S REPORT
To the Annual Shareholders' Meeting of Solstad Offshore ASA
Report on the audit of the financial statements
Opinion
We have audited the financial statements of Solstad Offshore ASA (the Company) which comprise the
financial statements of the Company and the consolidated financial statements of the Company and its
subsidiaries (the Group). The financial statements of the Company comprise the balance sheet as at 31
December 2022, the profit or loss account, the statement of cash flows for the year then ended and notes
to the financial statements, including a summary of significant accounting policies. The consolidated
financial statements of the Group comprise the consolidated statement of financial position as at 31
December 2022, the consolidated statement of comprehensive income, consolidated statement of cash
flows and consolidated statement of changes in equity for the year then ended and notes to the financial
statements, including a summary of significant accounting policies.
In our opinion
• the financial statements comply with applicable legal requirements,
• the financial statements give a true and fair view of the financial position of the Company as at 31
December 2022 and its financial performance and cash flows for the year then ended in
accordance with the Norwegian Accounting Act and accounting standards and practices
generally accepted in Norway,
• the consolidated financial statements give a true and fair view of the financial position of the
Group as at 31 December 2022 and its financial performance and cash flows for the year then
ended in accordance with International Financial Reporting Standards as adopted by the EU.
Our opinion is consistent with our additional report to the audit committee.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of
the financial statements section of our report. We are independent of the Company and the Group in
accordance with the requirements of the relevant laws and regulations in Norway and the International
Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants
(including International Independence Standards) (IESBA Code), and we have fulfilled our other ethical
responsibilities in accordance with these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit
Regulation (537/2014) Article 5.1 have been provided.
We have been the auditor of the Company since the listing in 1997, for more than 25 years from the
election by the general meeting of the shareholders.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the financial statements for 2022. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
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Independent auditor's report - Solstad Offshore ASA 2022
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opinion on these matters. For each matter below, our description of how our audit addressed the matter is
provided in that context.
We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial
statements section of our report, including in relation to these matters. Accordingly, our audit included the
performance of procedures designed to respond to our assessment of the risks of material misstatement
of the financial statements. The results of our audit procedures, including the procedures performed to
address the matters below, provide the basis for our audit opinion on the financial statements.
Impairment evaluation of vessels and right of use asset (vessels)
Basis for the key audit matter
The current market shows improved commercial
terms, especially in the CSV/renewable segment,
but at the same time high inflation rates give
increased cost levels.
Management identified indicators of changes in
vessel values and tested recoverable amounts of
the Group’s vessels (includes right of use assets
vessels). Each individual vessel was assessed as
a separate cash generating unit, and
management estimated recoverable amounts by
comparing the carrying amount to the highest of
fair value less costs of disposal and value in use.
For a majority of the CSV and AHTS vessels,
value in use was the basis for the recoverable
amount. Following the agreement for sale of the
majority of the PSV fleet in 2023, the recoverable
amount for these vessels were calculated at
estimated fair market value less cost to sell. As
per 31 December 2022 three vessels (a CSV,
PSV and AHTS) were classified as held for sale
and recognized at the agreed amount less cost to
sell.
As per 31 December 2022 book value of the
Group’s vessels amounted to NOK 20 763,7
million, representing 80% of the Group’s total
assets. The Group recognized impairment of NOK
620 million and reversal of NOK 1 217 million
related to owned vessels. Furthermore, an
impairment of NOK 33 million related to right of
use asset vessel was recognized.
When estimating value in use, management
applied budget and long-term strategic plans
approved by the Board of Directors, including
assumptions regarding future market and
economic conditions. Key estimates for the value
in use calculation were future day rates, utilization
rates, and discount rate.
Considering the extent of estimates and
assumptions applied in the impairment evaluation,
Our audit response
Our audit procedures related to value in use
included, among others, an evaluation of the cash
flows through comparing assumptions for revenue
projections to budget and strategic plans
approved by the Board of Directors, current
contracts, and market analysis from third-party.
For operating expenditures, we compared the
estimates to approved budgets, historical data
and external long-term forecasts. We performed
an assessment of the reliability of management’s
forecast through a review of actual performance
against previous forecasts and the consistence of
valuation methodology applied.
We involved an internal valuation specialist in
testing of the mathematical accuracy of the value
in use calculation, in the assessment of the model
and the discount rate applied. With support from
our internal valuation specialist, we performed
sensitivity analysis of management’s
assumptions. Furthermore, we compared
management’s value in use calculations with third-
party broker valuation reports obtained by
management.
We refer to note 2 Accounting estimates and
assessments, note 7 Tangible fixed assets and
note 8 Right of use assets
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Independent auditor's report - Solstad Offshore ASA 2022
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and management’s involvement and significant
judgement in establishing them, we assess
impairment evaluation of vessels as a key audit
matter.
Accounting impacts from Solstad Group related to changes in lease arrangement for CSV
Normand Maximus
Basis for the key audit matter
Solstad Group has since 2016 rented CSV
Normand Maximus on a bareboat charter contract
from vessel owner (lessor). Related right of use
asset and lease liability are material parts of the
group’s total assets and liabilities. In May 2022
the lessor sold CSV Normand Maximus and the
lessor and Solstad Group entered an agreement
related to outstanding liabilities under the
bareboat charter contract (“residual claim"). As
part of the sale of CSV Normand Maximus, the
new vessel owner and Solstad Group signed a
bareboat charter contract and Solstad Group
maintained operational control of the vessel.
Management assessed the accounting impacts
for Solstad Group of the changes to the lease
arrangement for CSV Normand Maximus and
concluded it was to be accounted for as a
modification of a lease contract. Key judgements
were related to the substance in the arrangement,
amongst others whether related contracts were
negotiated in contemplation of each other such
that the overall economic effect cannot be
understood without reference to the series of
transactions.
Considering the complexity, judgement and
assumptions applied by management in the
accounting assessment of the lease changes,
together with its impact on the group’s statement
of comprehensive income and statement of
financial position, we evaluated the assessment of
whether this was a lease modification or separate
leases as a key audit matter.
Our audit response
We assessed management’s evaluation of
substance in the lease arrangement and
accounting principles applied. As part of this we
inspected related contracts and we performed
inquiries to management and its external lawyer.
We inspected Solstad Group’s board documents
and minutes from board meetings. We refer to
note 2,6 and 8 of the consolidated financial
statements.
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Independent auditor's report - Solstad Offshore ASA 2022
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Other information
Other information consists of the information included in the annual report other than the financial
statements and our auditor’s report thereon. Management (the board of directors and the general
manager) is responsible for the other information. Our opinion on the financial statements does not cover
the other information, and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information,
and, in doing so, consider whether the board of directors’ report, the statement on corporate governance
and the statement on corporate social responsibility contain the information required by applicable legal
requirements and whether the other information is materially inconsistent with the financial statements or
our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the
work we have performed, we conclude that the other information is materially inconsistent with the
financial statements, there is a material misstatement in this other information or that the information
required by applicable legal requirements is not included in the board of directors’ report, the statement
on corporate governance or the statement on corporate social responsibility, we are required to report
that fact.
We have nothing to report in this regard, and in our opinion, the board of directors’ report, the statement
on corporate governance and the statement on corporate social responsibility are consistent with the
financial statements and contain the information required by applicable legal requirements.
Responsibilities of management for the financial statements
Management is responsible for the preparation and fair presentation of the financial statements of the
Company in accordance with the Norwegian Accounting Act and accounting standards and practices
generally accepted in Norway and of the consolidated financial statements of the Group in accordance
with International Financial Reporting Standards as adopted by the EU, and for such internal control as
management determines is necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s and the
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless management either intends to liquidate the
Company or the Group, or to cease operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
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Independent auditor's report - Solstad Offshore ASA 2022
A member firm of Ernst & Young Global Limited
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company’s and the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Company’s and the Group’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in the financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Company and the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the group audit.
We remain solely responsible for our audit opinion.
We communicate with the board of directors regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide the audit committee with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters
that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the board of directors, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should
not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
Report on other legal and regulatory requirement
Report on compliance with regulation on European Single Electronic Format (ESEF)
Opinion
As part of the audit of the financial statements of Solstad Offshore ASA we have performed an assurance
engagement to obtain reasonable assurance about whether the financial statements included in the
annual report, with the file name 5967007LIEEXZXHGO849-2022-12-31-en.zip, have been prepared, in
all material respects, in compliance with the requirements of the Commission Delegated Regulation (EU)
2019/815 on the European Single Electronic Format (ESEF Regulation) and regulation pursuant to
Section 5-5 of the Norwegian Securities Trading Act, which includes requirements related to the
preparation of the annual report in XHTML format and iXBRL tagging of the consolidated financial
statements.
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Independent auditor's report - Solstad Offshore ASA 2022
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In our opinion, the financial statements, included in the annual report, have been prepared, in all material
respects, in compliance with the ESEF Regulation.
Management’s responsibilities
Management is responsible for the preparation of the annual report in compliance with the ESEF
Regulation. This responsibility comprises an adequate process and such internal control as management
determines is necessary.
Auditor’s responsibilities
Our responsibility, based on audit evidence obtained, is to express an opinion on whether, in all material
respects, the financial statements included in the annual report have been prepared in accordance with
the ESEF Regulation. We conduct our work in accordance with the International Standard for Assurance
Engagements (ISAE) 3000 – “Assurance engagements other than audits or reviews of historical financial
information”. The standard requires us to plan and perform procedures to obtain reasonable assurance
about whether the financial statements included in the annual report have been prepared in accordance
with the ESEF Regulation.
As part of our work, we perform procedures to obtain an understanding of the company’s processes for
preparing the financial statements in accordance with the ESEF Regulation. We test whether the financial
statements are presented in XHTML-format. We evaluate the completeness and accuracy of the iXBRL
tagging of the consolidated financial statements and assess management’s use of judgement. Our
procedures include reconciliation of the iXBRL tagged data with the audited financial statements in
human-readable format. We believe that the evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Bergen, 30 March 2023
ERNST & YOUNG AS
Øyvind Nore
State Authorised Public Accountant (Norway)