Sea1 Offshore

Welcome to the presentation of our results for the first quarter. My name is Bernd Omdahl, and 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, 2026, 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 15 fully owned vessels, and in addition, we have four vessels under construction. All of our vessels in operation delivered a positive EBITDA margin. We had $72 million in revenue, and we delivered US dollars $37.5 million in EBITDA, which is equal to an EBITDA margin of 52%. We had a book equity ratio of 49% post-dividend. Our net interest-bearing debt was $217.5 million at the end of the quarter. We continue to deliver safe and efficient operations in all regions. This is a result of high focus on safety at all levels in the company. The utilization of the fleet in the quarter was 90%. The contract for C1 Naragogi was extended with one year, taking the vessel's firm period up to January 2027. In January, the company signed a loan agreement for financing related to our new builds. And due to solid results, a strong balance sheet, good liquidity and a significant backlog, The Board authorized a dividend payment of NOK 4 per share. And the dividend payment was executed on the 16th of April. Vidar Jasta will now give some more details regarding the results for the quarter.

Thank you, Bernd. Operating revenues were $72 million in the first quarter this year. compared to 68.5 million last year. The total revenues for the quarter are above the 2035 revenues, even though the subsea vessel C1 Spearfish was sold in mid-May last year. Adjusted to this sale, revenues have increased compared to last year for all segments, mainly due to higher charter rates, but also due to Ben Viking being on bear board contract in March, generating revenues for the company. The operating expenses increased from Q1 2025 by $4.2 million. This is mainly explained by a one-off item in Q1 last year, which reduced operating expenses by $3.2 million. In addition, as just mentioned, Ben Viking is on bearable contract in March 2026, increasing operating expenses. Administrative expenses were $7.8 million compared to $5.8 million same quarter last year. The increase in administrative expenses is mainly due to weaker dollar compared to most currencies. Our offices are mainly exposed to Norwegian, Brazilian, Australian and Canadian currency, which all have strengthened against the dollar. In addition, there were some increased costs related to introduction of a new accounting system, a system which is now fully implemented, and there are also some increased costs accrued related to labor claims in Brazil. EBITDA was 37.5 million, compared to last year, 40.3 million. Adjusted for C1 spare fish and the one-off item of 3.2 million in reduced OPEX last year, the EBITDA has a 17% increase. Depreciation and amortization expenses were 13.2 million. Operating profit ended at 24.4 million. Net financial items were positive by 4.3 million. And it includes a net currency gain of 3.1 million. The positive financial cost in first quarter 26 is due to a reversal of interest accrues related to C1 Maragogi and C1 Maratices late delivery litigation in Brazil. This has a $4.5 million in positive impact. The net profit to shareholders was $28.3 million or $0.18 per share compared to $0.14 per share last year. This slide shows margins for our four main segments. The left side presents the first quarter results and the right side presents the full year results for 2025. The figures are not included G&A expenses. Margins increased for the oil spill recovery vessels, the anchor handling vessels and the PSVs. The subsea segment margin declined due to the sale of C1 spearfish. However, the remaining subsea vessels delivered a 5% margin increase for the quarter. So overall, all segments have underlying margin improvements. The anchor handling segment made the largest improvement compared to the same quarter last year, increasing the margin by $6 million, or 56%. This slide summarizes C1 Offshore's financial position. As set out in today's report, the company continues to deliver solid performance. As mentioned, based on solid results, strong balance sheet, good liquidity and a significant backlog, the Board of Directors authorized a dividend of 4 NK per share on 28 March. Following the dividend announcement, $63 million were reclassified from equity to payables or short-term liabilities. However, book equities still remain solid at 49%. Gross interest-bearing debt is $286 million, and net interest-bearing debt is $217 million. At quarter-end, The company also had access to additional liquidity through an undrawn revolving credit facility of $100 million. And speaking of liquidity, also remember, in January, C1 secured a new $315 million credit facility for the four new builds. Around $85 million is available pre-delivery for yard installments, and the remaining amount will be drawn on delivery of each vessel. And now, the cash flow for the first quarter, 2026. And note that the dividend was announced in March, however paid in April, and therefore the dividend is not included in the cash flow for the first quarter. We started the year with $86 million in cash. We have received $23 million from operations. We have paid net interest of $3 million. We have invested in vessels, $26 million, 17 of those in new builds and 9 in existing vessels. We have reduced debt by $11 million. and ended the first quarter with $68 million on our accounts.

Thank you. Moving on to the contract backlog. T-Bone also has a backlog of about $1,200 million, where of 550 of 1 million is options. And as you can see, the largest part of our backlog is related to our subsea fleet, which represents 80% of our total backlog. For the remaining of 2026 we have a firm backlog of about 157 million dollars. For 2026 C1 Offshore has 100% coverage for both the PSV fleet and for the Subsea fleet. The anchor handler segment has about 50% coverage for the remainder of this year. For 2027, we have 100% coverage for our PSVs and close to 80% for the subsea fleet, and that is excluding vessels under construction. Our OSV fleet consists of 15 fully owned vessels, as listed on this slide. In addition, we have four offshore energy support vessels under construction, and we have eight vessels under our technical and commercial management. We still have two well intervention vessels. We have two PSVs. We have one offshore construction vessel. and we have two oil spill recovery vessels and two fast crew vessels and we have four new buildings under construction in China and we have six fully owned anchor handlers and we have eight anchor handlers on management which gives us control of 14 anchor handlers in total. So let's move on to the next slide where we have listed the vessels and areas of operations as per today. On this slide, we have listed the boat or 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. We will continue to move vessels around the world where we can perform safe operation based on sustainable conditions. For the anchor handlers, they are mainly short-term contracts and campaigns. And in Australia, we currently have the anchor handlers, C1 Aqua, Marine, C1 Emerald, and Andreas Viking. They are all operating on term contracts. C1 Sapphire is on a way to Singapore and C1 Amethyst is in dry dock in Singapore. Danko Anlor Avalon Sea is still operating in Canada. In the North Sea spot market, we have C1 Ruby, Drage Viking, Mange Viking, Lauke Viking, Odin Viking and Jord Viking, which are all trading the spot market. And the anchor handler Sur Viking will enter the spot market next week. Moving on to the construction vessels, we have C1 Dorado on a firm contract operating in Brazil. And the two well intervention vessels, C Helix 1 and 2, they are both on long-term contracts working offshore Brazil. In Brazil, we also have our two PSVs, C1 Atlas and C1 Giant. They are both on term contracts. For our smaller Brazilian fleet, we have the oil spill recovery vessels, C1 Maragogi and C1 Marataces. They are both on term contracts with Petrobras. And we also have the two fast crew vessels, C1 Just a few comments to the markets. The geopolitical tension continues to shape our operating environment, and it creates demand and opportunities for our industry. For the construction support vessel market, long-term demand fundamentals remain strong, with SEPSI backlog from leading EPCs at record levels. Despite continued low rig activity in the UK, the North Sea anchor handler market improved further in the first quarter, with day rates peaking well above US$300,000 a day. The anchor handler market is expected to remain volatile, but we expect prolonged peaks as more projects enter the market. Both the APEC region and South America is softening a bit in the short term, but we are still positive about the market in these regions for the years to come. So to summarize, we deliver a strong quarter with high activity. We continue to deliver first class operation with excellent HSEQ performance. Our new billing program on track with the first vessel to be delivered in January next year. We have a solid financial position and we have a strong backlog with quality clients and we have a positive long-term market outlook. That was the end of the presentation and we will now open up for questions. Alright, so we have got one question here regarding the Valley Intervention Vessel Sea Helix 2. The question is, when did the new IVR contract start? The contract started in January this year. And there's another question regarding the Asia and Australia region. Can you please update on the outlook for the C1 Amethyst and C1 Sapphire? Well, both vessels are on the... C1 Sapphire is on the way to Singapore and C1 Amethyst is in dry dock in Singapore. We have booked some short-term work for the vessels commencing within a month or two. It is a challenging market in that region. No long-term contracts as we see it. But we believe we will manage to secure some shorter projects for both vessels.

And we also see, Bernd, that we have a coming rig. new rig activity in Australia, which is very promising.

Yeah. So another question about the two vessels already mentioned, if they will return to the North Sea. There is no plans from our side at this moment to take them back to the North Sea. And there is another question regarding the North Sea spot market. Do you have secured any projects for the North Sea anchor handler fleet? And so far we have not done so. Another question regarding the Avalon Sea. Can you update on the current duration? The vessel is now firm until end of July. and there is further options attached to the contract. With regards to a question regarding the vessels trading on the contract in Australia, on the rig consortium, the vessels are now firm until October this year. So please fill Free to ask questions. Any other questions please? Give it a minute more. Maybe you could answer this one Andreas. Do you think the Anchor Hill market can hold up for the second half of 2026?

Yes, thank you Bernd. Of course, if you're thinking about the North Sea market, we see the project activity is the highest now in the first half. But we also see it coming up with the new projects and also we will have more rig activities, especially on the UK side now from May. And we will have increased the semis from three to five on UK side, which is very, very promising for more activity. Very good.

And there is another question here regarding our new builds. Can you please update on the geographical area of operation for the new builds and type of contracts? Well, so far we don't have any contracts for the vessels, but we are targeting work on a worldwide basis. And the typical duration of such contracts is, let's say, from one to three years, I would say. But this is work in progress and we will update you once we have secured a contract.

Any other questions, please?

Okay. If no further questions, we will then end this session and we thank you all for attending.