Sea1 Offshore

Welcome to the review and presentation of our results for the first quarter. My name is Bernd Domdahl. I'm the CEO of the company. Together with me, I have our CFO, Vidar Jasta, and we will take you through this presentation. C1 Offshore's report for the first quarter 2025 was released prior to the market opening today. In this presentation we will cover the main highlights of the report and we will refer to the presentation issued together with the financial report. At the end of the presentation we will open up for questions. Looking at the highlights for the quarter, we operated 17 fully owned vessels. All of our vessels in operation delivered a positive EBITDA margin. We had close to $70 million in revenue and we delivered $40 million in EBITDA, which is equal to an EBITDA margin of 59%. We have a book equity ratio of 42%. And I think it's worth mentioning that these numbers are delivered with less vessels than the same quarter in 2024. We continue to deliver safe and efficient operations in all regions. This is a result of a high focus on safety at all levels in the company. The utilization of the fleet in the first quarter was 88%, excluding one vessel that was in layup. On the back of solid results, and a strong balance sheet combined with a strong backlog. A dividend of 7 Norwegian Kronos per share was paid to shareholders in January this year. We have a refinance debt related to the two well intervention vessels. We entered into a revenue sharing agreement with Viking Supply Ships for six anchor handlers owned by them and five large anchor handlers owned by C1 Offshore. We signed another contract with Costco for building two offshore energy support vessels. It is a ST245 design with a 250 ton crane. this is sister vessels to the two vessels ordered last year. So in total four vessels of the same design ordered at the same yard. Furthermore we have signed an agreement for the sale of C1 spare fish at a very favorable price. The sale will result in a gain of approximately 40 million dollars. Vidar Jasta will now give some more details regarding the results for the first quarter 2025.

Let's take a look at the income statement. When comparing figures to 2024, keep in mind that the number of vessels owned by C1 has decreased by nine vessels. In the first quarter, the company had 68.5 million in revenue. Operating expenses were 22.4 million. This figure includes a positive one-off effect of 3.2 million received from a claim related to a previous charter contract back in 2016. Administrative expenses were 5.8 million. EBITDA for the quarter ended at 40.3 million. Adjusted for the one-off effect of 3.2 million, this is still well above last year's EBITDA that was generated by an additional nine vessels on the balance sheet. Depreciation in first quarter this year on the chips was 13.5 million dollars. Net financial items were negative by 4 million and including a currency gain of 4.9 million dollars. Profit before taxes ended at 23 million dollars. Net profit after taxes ended at 22.2 million. This compared to 11.6 million in the same quarter last year. This slide illustrates the operating margin across our three primary segments. The figures shown are prior to G&A expenses and reflect only the vessels currently owned by C1. In the first quarter, all three segments experienced an increase in operating margin. Subsea rose by 32%, PSVs by 177% and anchor handlers by 57%. This slide presents the financial position of C1 Offshore. The company maintains a strong financial standing with a book equity ratio of 42%. Gross interest bearing debt stands at 396 million, while net interest bearing debt is 343 million. The company has additional cash available through ungrown amounts under a revolving credit facility established in January. And now the cash flow so far in 2025. We started the year with 68 million dollars in cash. we have received 37 million dollars from operations we have paid net interest of 2 million dollars we have invested 13 million dollars in the vessels we have increased net debt by 57 million dollars and paid dividend of 94 million dollars and the first quarter ended therefore with 53 million dollars

in cash on the accounts looking at our contract backlog C1 offshore has a firm a backlog of 812 million dollars in addition there is about 629 million dollars of options attached to the firm periods the largest part of our backlog is related to our subsea fleet For the remaining part of 2025, we have a firm backlog of about 186 million US dollars. For 2025 and 2026, we have 100% coverage for the PSV fleet. And for the subsea fleet, we have 100% coverage as well when deducting the scientific core drilling vessels that is put in layer. For the anchor handler segment we are trying to secure more term contracts. We see more and more term tenders in the market and hopefully we will be in a position to conclude more term contracts for the anchor handlers as well. Our OSV fleet consists of 17 owned vessels as listed on this slide. In addition, we have four vessels under construction and six vessels under our technical and commercial management. So we have now two well intervention vessels, two PSVs, two offshore construction vessels, six anchor handlers, a smaller Brazilian fleet of four vessels, that is fast crew vessels and oil spill recovery vessels. and we have this scientific core drilling vessel called JOIDES Resolution. She is in layer. Let's look at our areas of operation as per end of March. On this slide we have listed all our fully owned vessels and vessels operated commercially and technically by us. The company has a really good global footprint, which is important for the utilization of the fleet. We will continue to move vessels around the world where we can perform safe operation based on sustainable conditions. For the anchor handler segments, there are mainly shorter contracts and campaigns. In Australia, we currently have the anchor handlers C1 Sapphire, C1 Aquamarine, C1 Amethyst, C1 Emerald and Andreas Viking all operating on term contracts. In Canada we have the smaller anchor handler Avalon Sea. She is on a medium term contract. C1 Ruby, Brage Viking, Magne Viking, Loke Viking, Odin Viking and Njord Viking are all trading the North Sea spot market. Our construction vessels C1 Spearfish and C1 Dorado they are both working on term contracts currently in Brazil. The two well intervention vessels Helix 1 and Helix 2 they are both on long term contracts working offshore Brazil. We have two PSVs in our fleet that is the CM Atlas and CM Giant they are both on term contracts in Brazil. For our smaller Brazilian fleet, we have the oil spill recovery vessels CM Maragogi and CM Marataces, both on term contracts with Petrobras. And the fast crew vessels CM Pendutiba and Piata are both on long-term bare boat agreements. And as mentioned, the JOIDES resolution, she is now in layup here in Norway. And as shown on previous slides, we have a really good contract coverage for this year. Some comments to the market. The forecast for the global economy and oil demand are positive for 2025 and 2026. However, the geopolitical situation has introduced some uncertainty. In the construction support vessel market, a handful of long-term tenders and requirements have recently been launched by the EPC companies. The market is still tight with only two to three large vessels having availability during 2025. The North Sea Anchor Handler market was slow at the start of the quarter. At the end of March, the Anchor Handler market was nearly sold out and rates increased sharply. Project activity remains good for the season and the Anchor Handler market is expected to gain momentum over the next months. The semi-rig activity in Australia will see a temporary decrease in 2025, which may result in more available support vessels in the region or migration of vessels to other regions. This could in the short term lead to regional pressure on rates and utilization before we see new rig activity, which is expected in 2026. Moderate growth in the OSV market is expected for the rest of the year. A tight supply side in the subsea vessel segment is expected to continue as there is a limited number of new builds to be delivered in the short term. So to summarize, we delivered a strong quarter. C1 Offshore continued to deliver first class operations with an excellent HSEQ performance. You have a solid financial position. You have a strong backlog with quality clients, and there is a positive long-term market outlook in all segments. That was the end of the presentation. We will now open up for questions. Okay, I see we have got some questions already in the chat function, so I'll start reading them. The first question is, in the fourth quarter presentation you expected more term opportunities for the anchor handler fleet. Do you still expect this to materialize or have it changed in any way? We still see more tenders out in the market and there is more tenders in the pipeline as well. So we don't see any changes to that at all. It's quite a few in Brazil and other term work that we are pursuing. And then there is another question regarding the sale of one subsea vessel. What is the rationale for having one less vessel over the next two years if the market is so tight? Well, that is correct. The market is tight, but this deal was really, really good for the company. So our consideration is to grab a good deal when it's on the table. next question we have in the chat is can you say anything about what vessels that will be on the australia contracts and i think here the question is regarding the rig consortium contract and that is c1 aquamarine c1 emerald and andreas viking that is on this on this contract uh How do you look at the market for C1 Dorado? A potential sale here as well or not? Well, the C1 Dorado is on a firm contract. She is not put out for sale. But I mean, if you get a good deal in place for her as well, I mean, then we could consider selling her as well. And then there's another question here. How do you look at the North Sea spot market? Is it most interesting to do project work and time shuttles or do you want to be in the spot market with all Viking vessels? Well, we think a combination is good. So if there is more term work for C1 offshore vessels or Viking vessels, we will pursue those. So a mix between spot and long term contracts is what we are targeting. And then the next question in the chat, what is the dividend policy going forward?

Well, recently shareholders have received substantial dividends and the decisions regarding dividends and share buybacks lies with the board of directors. The company does not have any formal dividend policy in place and the future capital allocation of dividends that will be based on the financial outlook and market conditions. That's what we can say about this.

And then there is another question. How is the revenue sharing with Viking favorable for C1? Well, this is a good deal for both parties. Having control of 11 vessels, both technical and commercial, give us some power in the market. And then there are another questions popping up here. Any plans to buy or merge with Viking? We cannot comment on that. And there's one more question here. The anchor handler backlog only decreased slightly from Q4 to Q1. Have you secured some new anchor handler backlog or option extended? There is some shorter term contracts that has been secured that has not been published as it's only a couple of months really. Okay, and then there is another one. Have you started to see any rate pressure on new contracts and tenders? I wouldn't say there is any rate pressure downwards, if that's the question. I think it's a little cooling in the spot market, but I mean that is really a volatile market. Can you update if the PSVs in Brazil on a nine-month contract have been extended or has secured new work in the country?

We are close on securing more work for that position.

Regarding the payment for the 2016 claim, in which segment was that recorded? That was in the subsea segment. What do you expect in the net proceeds for this spearfish sale?

Well, I see that in the market there have been some speculation about a sales price of 110 million dollars and we are above debt figure that's what we can say and as Ben said we receive more for that vessel and we pay for the new vessels.

Yes regards to the question here regarding the anchor handling fleet can you update on your own Autas fleet or Autas vessels the contract status and length of the current term contracts it is said it's quite many contracts, but I think the Australian contracts, the RIG consortium are good long contracts, expecting good duration on those with 16 firm wells and 19 optional wells. The RIG side contracts for the Sapphire will also go probably into 27. Amethyst on the Santos contract will be a little finish this June, but we are looking at other opportunities in the region for her. So I think the market in Australia has seen a little pressure now, but we are having on the right rigs there with the fleet. So it will give us quite good or very good backlog as it is for the moment.

And then there's another question.

Are you already bidding the new builds on Tendros?

Well, we have a good dialogue with potential clients for the four new buildings. So that is, well, we are looking at alternatives for the vessel. We have a good dialogue with the various clients, but nothing firm yet.

And the last question here, what's the contract status for CM Atlas? Yes, she's finished with a total contract in June now, but we are very close to secure more work for her on a medium term contract. So it's very positive. And also in Brazil, Petrobras just launched multi-vessel tenders for PSVs in the different categories. So it's still very strong outlook for that segment in Brazil.

All right, that was the last question in the chat. So I don't see any further questions here. We thank you all for attending. Wish you all a good day. Thank you.