Sea1 Offshore

Welcome to the presentation of our results for the second quarter. My name is Bernd Omdahl. I'm the CEO of the company. Together with me, I have our CFO, Vida Jasta, and we will take you through this presentation. C1 Offshore's report for the second 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 issue 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 16 fully owned vessels in the second quarter. All of our vessels in operation delivered a positive EBITDA margin. We had 71 million dollars in revenue and we delivered close to 40 million dollars in EBITDA, which is equal to an EBITDA margin of 55%. We have a book equity ratio of 50% and our net interest bearing debt is 225 million dollars. 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 and this is a result of high focus on safety at all levels in the company. The utilization of the fleet in the second quarter was 92%, excluding one vessel that was in layup. We sold the 2014 built OSCV C1 Spare Fish and the vessel was transferred to the new owner in May. We recorded US$41.4 million in gain. All vessels operated on behalf of CM is now re-delivered to them. It's also worth mentioning that the two new board members were elected yesterday. Mr. Otto Moltke Hansen, he's an investment analyst in Kistefoss. He's replacing Ørjan Svanevik. And Mr. Rune Magnus Lindetræ, he's CEO in Blystad Group, and he's replacing Fredrik Plato. Vidar Gerstad will now give some more details regarding the results for the second quarter.

Let's take a look at the income statement. When comparing figures to 2024, please note that C1 own fleet has decreased by nine vessels and that the number of shares sharing the profits of the company has been reduced by more than 35%. In the second quarter, the company had a 71.3 million in revenue. Operating expenses were 25.3 million. Administrative expenses amounted to 6.4 million. EBITDA for the quarter ended at 39.6 million, 5.2 million higher than what the same vessels generated in the same quarter last year. This even though the scientific core drilling vessel JOIDOS resolution is in layup and C1 spare fish was sold in mid-May. Depreciation on the ships in the second quarter was 12.3 million. On the other hand, the company has recorded a gain related to the sale of C1 Spare Fish of 41.3 million dollars. This leaves us with an operating profit of 68.6 million. Net financial items were negative by 3.3 million, which includes a currency gain of 3.1 million. Profit before taxes ended at 65.3 million. Net profit after taxes ended at 64.9 million. The next slide illustrates the operating margin across the three primary segments. Left hand side shows second quarter and right hand side shows year to date. The figures shown are prior to G&A expenses and reflect only the vessels owned by C1 in the quarter. The decline in the subsidy segment in the second quarter compared to same quarter last year is due to the previous mentioned layups of the scientific core drilling vessel and the sale of the C1 spearfish in mid-May. Adjusting for this, we see an increase in revenue and operating margin in all segments compared to same quarter last year. This slide presents the financial position of C1 Offshore. The company maintains and improves a strong financial standing with a book equity ratio of 50%. Gross interest bearing debt stands at 324 million, while net interest bearing debt is 226 million. The company has additionally cash available through an undrawn 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 74 million from operations. We have paid net interest of 3 million. We have invested 44 million dollars in existing vessels and the new building program. We have net reduced debt of 14 million. We have received net proceeds from the sale of C1 spearfish of 113 million dollars and paid dividend of 94 million dollars. Some smaller adjustments of 2 million dollars and we end up with 98 million dollars in cash at the end of the second quarter. But

Looking at our contract backlog, C1 Offshore has a firm contract backlog of $756 million. In addition, there is $589 million of options. And as you can see, 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 $112 million. For 2025, we have 100% coverage for both the PSV fleet and for the subsea fleet. For 2026, we have 100% coverage for the subsea fleet and close to 50% for the anchor handler and PSV fleet. We are targeting more term work for the anchor handler segment. We see more and more term tenders in the market and hopefully we will be in a position to conclude long term contracts. Our OSV fleet consists of 16 owned vessels as listed on this slide. In addition, we have four vessels under construction and six vessels under technical and commercial management. And one more vessel will be added late September. So CA1 Offshore has now two well intervention vessels. We have two PSVs. We have one offshore construction vessel. We have the scientific core drilling vessel. We have fast crew vessels and oil spill recovery vessels in total four. And we have six anchor handlers. And we have a new building program of four construction vessels. and in addition we operate six vessels on management on behalf of Viking supply ships. So let's look at our areas of operation as per today. On this slide we have listed all our fully owned vessels and vessels operated commercially and technically by us. The company has, as mentioned before, a very good global footprint, which is important for the utilization of the fleet. And 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. And in Australia, we currently have the anchor handlers C1 Sapphire, C1 Aquamarine, C1 Emerald and Andreas Viking they are all operating on term contracts. In Malaysia we have C1 Amethyst and in Canada we have Avalon C and the remaining anchor handle vessels are operating in the North Sea spot market. Moving on to the construction vessel we have C1 Dorado on a firm contract operating in Brazil and the two well intervention vessels CMLX1 and CMLX2 are both on long-term contracts also working offshore Brazil. We have two PSVs in our fleet that is C1 Atlas and CM Giant they are both on term contracts in Brazil and for smaller Brazilian fleet we have the oil spill recovery vessels C1 Maragogi and C1 Marataces both on term contracts with Petrobras and then we have the fast crew vessels C1 Pendutiba and C1 Piata they are both on long-term bare boat agreements Then we have our core drilling vessel, Deoides Resolution. The vessel has been in lay-up for some months and we have decided to scrap that vessel. As shown on a previous slide, we have really good contract coverage for this year. A few comments to the market. The North Sea Anchor Hallow Market was strong at the start of the quarter with rates significantly higher than the previous two years. Spot demand declined in May and further into June and we expect to see a spot market that will be weak for the remainder of this year. For the construction support vessel market, long-term demand fundamentals remain strong, with subsea backlogs from conventional EPCs at record highs. In short term, however, we have observed decreased activity in the North Sea and a reduction in projects within deepwater regions. The semi-rig activity in Australia, seeing a temporary decrease in 2025, In the short term, this is expected to result in more available support vessels in the region, putting pressure on rates and utilization with some migration of vessels to other regions. Rig activity is expected to grow again during next year. A limited further increase in OSV utilization is expected over the next years based on moderate demand growth and stable fleet numbers. So to summarize, we delivered another strong quarter. C1 Offshore continue to deliver first class operation with excellent HSAQ performance. We have a solid financial position. We 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 and we will now open up for questions. So the first question that we have got here is, can you say something about a possibility, a possible merger between C1 and Viking? And that is something we cannot comment on. The next question received is, how long will you have the geodes resolution in layup before exploring other options? Well, we have been exploring options for quite some time. And it's now decided that the vessel will be scrapped.

And there is a question. regarding the revenue sharing agreement for our anchor handling vessels. In reality, the sharing agreement is a margin sharing agreement based on the number of vessels or actually the number of vessels days these vessels are available. And you can also note that the vessels enter into the revenue share agreement as they complete contracts initiated before the agreement was established. and this is to avoid any transfer of any previously reported backlog between the two groups. So this means not all vessels were part of this agreement in the second quarter.

Yeah, and there was also a question about the length of the term contracts. The three vessels sailing on a contract in Australia that goes until September next year as it looks now. You state the next question. You said more and more term tenders. This is very different than the market comments about the bleak outlook in anchor handlers. Andreas, maybe you will give a short comment to that question.

Yes, I think that my name is Andreas Kjøla. I'm CCO of C1. So on the market side, I think the Outlook for North Sea is weak, but we see more and more project work and also short, medium term contracts are coming out. So we see clearly activity levels are rising, especially from the large EPC contractors.

Good. and the next question is when does C1 Atlas firm contract end was an option removed in 2026 as there are as there now is available days did you cover that one as well under us yes the firm days is ending mid-December and we have a 75 days option on the Atlas after that but we are in dialogue with

with several opportunities for the Atlas. As we know, the Brazilian PSV market is very tight.

And the next question, are some options used on your anchor handlers in Australia? And could you provide them when the firm contracts are due? Yes, some options have already been taken. And as mentioned earlier, the contract expires in September next year. But there's still options that can be declared. But that is the outlook just now. Another question about JOIDES, which we have already covered. How confident are you on an increase in the Australian rig market activity next year? Well, this is just based on reports from analysts and also when we are speaking to to clients and potential clients, it seems like there will be some more activity next year. But I mean, this is not 100% certain. Next question, can you elaborate on the opportunities you see for C1 amethysts? We have just concluded a short contract for amethysts. She will go back to Australia. and help out on the rig consortium contract that we have for the three other vessels. So in total, there will be four vessels now operating in Australia. And the next one here is, what are your thoughts on the CSV market balance in 2027? One more new bills entered the market. We are still optimistic about the market from 2027 and further on. We see a lot of work being concluded by our potential clients. We are in a good position with the delivery early 2027 and we are quite confident that we will secure term work for our new builds.

There is a question here regarding financing of the new bills. We have not concluded yet, but we see good interest from parties that want to help us with the financing of the new bills, but we are in no immediate hurry. We have a modest debt amount, we have a good cash position, we have undrawn revolving credit facility, so we are not in a hurry.

And then there is one more question. When should we expect the contracts on your new builds? Well, the steel cutting will start mid-September and we expect to start potential negotiations in 2026, not before. And the last question here on amethyst again, is that an incremental contract or will it share revenue with the other three working on that three consortium contract? Well, all the anchor handlers are sailing on a revenue share basis, a pool of all anchor handlers. So yes, there will be a split also on that new contract. That was the last question we have received. If there is any other questions, please feel free to ask. All right. So if no further questions, we will end this session. And we thank you all for attending. Thank you.