Sea1 Offshore

Hello everyone and welcome to the presentation of CM Offshore's results for the fourth quarter and full year of 2022. My name is Vidar Jasta and I am the CFO of the company. Our chief commercial officer Andreas Hageli has joined me and together we will take you through this presentation. CM Offshore's fourth quarter report was released prior to the market opening today. The slides of this presentation were also made available then. We will now cover the main highlights of the fourth quarter report. And at the end of the presentation, we will open up for questions. Some highlights for the quarter. There were 28 vessels in operation. Revenue was 64.3 million. EBITDA came out at $20.8 million, which is equivalent to 32% of EBITDA margin. Our cash position was $94.9 million at the end of the quarter. Our book equity ratio was 35%. This was a typical quarter for entering the winter season and somewhat weaker quarter than same quarter last year. And then some business updates. Excluding vessels in layup, average utilization for the fleet in Q4 was 88%. Three vessels were in layup at the end of the quarter. However, the anchor handler CM Emerald is in the process of being reactivated. We have continued to deliver safe and efficient operations in all regions. This is a result of high focus on safety at all levels in the company. Contract awards in the fourth quarter. CM Durado was awarded a one year firm contract plus options. And our battery hybrid PSV CM Symphony has been awarded a new four to six month contract with the BP in Canada. And we have, of course, entered several shorter spot contracts in the period. Subsequent events. CM Barracuda has been awarded a contract extension of seven months with high wind tamping offshore wind farm project for client Equinor. CM Offshore has for the full year delivered $104 million in operating margin. This is up from previous year, and we believe these represent a long-term positive market trend. In the fourth quarter, CM Offshore generated $64.3 million in revenue and achieved an operating margin of $20.8 million. G&A is hit by general inflation and certain one-off effects. Depreciation was $15.2 million. There were no impairments or any reversal of impairments in the quarter. Operating profit ended therefore at $5.5 million. Interest rate expenses were $7 million, up from $4.7 million same quarter last year. Increasing interest rates impact the company negatively. Having said that, 38% of our debt has fixed interest rate. There are $7.1 million in currency losses recognized in the P&L. However, note that this should be seen in connection to currency gains under other comprehensive incomes. Net financial items ended thereby negatively by 13.9 million. Net profit before taxes are negative by 8.1 million, and after taxes, negative by 8.7 million. After adjusting for minority shareholders in one of our subsidiaries, we end up at minus 6.4 million. However, let me add that the equity increased by 5.3 million in fourth quarter. This is due to other comprehensive income mentioned just half a minute ago, and among other things include a currency gain of $12.2 million. And now take a look at the margins of the segment. These slides show operating margin before G&A and distributed on segments. OSCB and well intervention vessels had an operating margin of 18.5 million in last quarter. This is up by 2.5 million from same quarter last year due to increase in charter rates. The PSVs generated 1.8 million in margin last quarter. This is down 1.3 million due to reduced charter rates in combination with increased cost due to trading area. Anchor handling vessels had a negative operating margin of 1.9 million down from a positive figure of 1 million. The reduced margin is due to weak spot market, lower utilization, and increased OPEX due to one more vessel in operation compared to last year, and one vessel under reactivation. Other vessels generated $9 million. And let us bring the attention to the right-hand side of the slide. The year as a whole has an increase in margin, and we believe this represents an underlying positive market trend.

And let's take a look at the balance sheet.

As mentioned, the book equity of the company is continuing to grow. The company now has $359 million in equity and the book equity ratio is 35%. Gross interest bearing debt is $569 million. Net interest bearing debt is $474 million. CM Offshore's financial position is good and it continues to improve. CM Offshore is an attractive and solid business partner from a commercial and operational perspective, but also from a financial perspective. The cash flow for 2022 shows the following. We started the year with $92 million in cash. We have generated $100 million in cash from operations. We have paid net interest of $15 million. We have invested $25 million in COPEX, and we have repaid debt of $55 million. We ended the year with $95 million in cash. And now the contract backlog. At the year end of 2022, the backlog amount is $442 million with quality counterparties. The OECD and VAL intervention vessels dominate with 64% of the backlog. Our anchor handling vessels are represented by only 1% of the backlog. On this slide you see firm contracts and options in green and vacant vessel capacity in blue. Especially the short backlog in the anchor handling vessels represent a large degree of exposure to the markets. implicating market risk and market opportunities going forward. However, under the current long-term trend of improving markets and continued focus on energy security, we believe the available capacity going forward in general represent an attractive earnings potential. And now Andreas, over to you. Thank you, Ville.