Sea1 Offshore

Good morning and welcome to the presentation of our results for the fourth quarter. My name is Berndt Omdahl and 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 fourth quarter 2025 was released this morning. 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 15 fully owned vessels in the fourth quarter. In addition, we have four vessels under construction. All our vessels in operation deliver a positive EBITDA margin. We had USD 68 million in revenue, and we delivered USD 35 million in EBITDA, which is equal to an EBITDA margin of 52%. We have a book equity ratio of 54%. Our net interest bearing debt was $208 million at year end. And it's also worth mentioning that these numbers are delivered with less vessels than the same quarter last year. Looking at some of the highlights for the quarter. We continue to deliver safe and efficient operation in all regions. And this is a result of high focus on safety at all levels in the company. The company completed the transfer to Your Next Growth in December last year. We were awarded a new contract for C1 Atlas in Brazil with a duration of 3 years plus a 6-month option at favorable terms. The utilization of the fleet in the quarter was 93%. Recently, the contract for C1 Maragogi was extended with one year, taking the vessel's firm period up to January 2027. Bidar Jasta will now give some more details regarding the results for the fourth quarter.

Thank you, Bernd. When comparing the 2025 and 2024 results, we are aware of several key changes. In July 2024, nine vessels were sold and the number of shares entitled to company profits were reduced by 35%. Joyder's resolution was placed in layup at the start of fourth quarter of 2024 and later sold for recycling. And C1 Spearfish was sold in May 2025. For the fourth quarter, the company reported revenue of 68.2 million. This is consistent with the prior year, even though C1 Spearfish was no longer part of the fleet. Operating expenses amounted to $24.7 million and administrative expenses was $8.1 million. EBITDA for the quarter ended at $35.4 million. This is also at the same level as same quarter last year. However, it represents an increase of $5 million for our assets held today. Depreciation on chips in fourth quarter was $13 million. This leaves us with an operating profit of $23.7 million. Net financial items were negative by $10.5 million, which includes a currency loss of $5.8 million. However, a currency gain of $4.8 million is recognized under other comprehensive income, resulting in a net currency effect on equity of minus $1 million. Profits before taxes ended at 13.2 million. Taxes for the period was 1.2 million in C1's favor. Net profit after taxes ended at 14.4 million. This slide represents the operating margin for our four main segments. The left side displays results for the fourth quarter, while the right side shows full year figures. Only vessels that were owned by C1 at the beginning of 2025 are included. The numbers are before G&A expenses. We observe an improvement in margins for the oil spill recovery vessels, the anchor handlers and the PSVs. This both for the quarter and for the full year figures. The subsea segment experienced a decline in margin, primarily due to the reduced fleet. Nevertheless, the vessels currently owned within the subsea segment recorded a margin increase of 13% for the quarter and 20% for the full year. Consequently, all segments demonstrate underlying improvement in operating margin. On this slide we see C1 Offshore's financial position. The company continues to demonstrate good performance and has now reached a book equity of 54%. Gross interest-bearing debt is $295 million and net interest-bearing debt is $209 million. Additionally, the company has access to further liquidity through an undrawn revolving credit facility of $100 million. The company has recently signed a loan agreement to finance our four new new-build vessels. A new credit facility of $315 million is provided by a leading direct lender and capital provider. Approximately 85 million of the facility will be available prior to vessel delivery to fund pre-delivery yard installments. The remaining amount will be drawn upon delivery of each vessel. The facility carries a five-year tenor from each vessel delivery and 11-year amortization profile. And the facility is truly independent of any underlying commercial contract commitments. And now let's take a look at the full cash flow for 2025. We started 2025 with $68 million in cash. We have received $151 million in cash from operations. We have paid net interest of $19 million. We have invested $86 million in vessels, $55 million in new builds and $31 million in existing vessels. We have reduced the debt by $44 million. We have received net proceeds for the sale of C1's Bearfish and George's Resolution of $114 million, and in January 2025 we paid $94 million in dividend. Some other smaller changes, and we ended up with $86 million in cash on the accounts at the end of 2025.

C1 Offshore has a backlog of about 1270 US dollars, that is million US dollars, where of 569 million dollars is options. The largest part of our backlog is related to our subsea fleet, which represents 80% of our backlog. For 2026 we have a firm backlog of about 192 million.