Solstad Offshore ASA

Good morning everyone and welcome to Solstad Offshore's third quarter 2026 presentation. The presentation will be held by Kjetil Ramstad, CFO, and myself, Lars Peder Solstad, CEO. There will be a Q&A session after the presentation, so please send in your questions in the chat. Overall, we are pleased with the continued solid performance of the company during the quarter. But let me take you through the main developments we have had during the quarter and year to date. A quick look at the disclaimer before we move on to the company highlights. And the third quarter was another quarter with solid operational and overall performance for Solstad Offshore. We had a total adjusted EBITDA of 41 million US dollars compared with 29 million in the same quarter last year. Operational EBITDA was 17, slightly below the 19 we had last year. But at the same time, our joint ventures and associated companies contributed with $24 million in this quarter compared with $10 million last year. In September, we completed the sale of the Norman Tonjor, where we had an ownership of 56%. This generated an accounting gain of about 24 million dollars and making a significant contribution to our cash position. After the quarter end, we declared the US dollar 125 million purchase option for the Norman Maximus with delivery scheduled for October 27th. Our intention is to finance the purchase price through external debt financing. and also important, the previous letter of intent that we have announced for Norman Maximus has now been replaced by a firm 26-month contract with Saipem, giving the firm commitment well into second quarter 2029 and with additional 11 months of options thereafter. and finally we are distributing a dividend of 0.3 USD per share this quarter corresponding to approximately 25 million USD. So overall we continue to combine solid operations with strategic investments and attractive shareholder distributions. So Kjetil, can you take us through the details on the numbers?

Yeah, I will do that. So let's have a look at the financial and operational summary. The fleet utilization was 92% in the third quarter of 26, compared with 97% in last year. Year-to-date utilization has been 85% compared with 97% last year. The main reason for the lower utilization year-to-date was the late startup of a long-term contract with Petrobras for the Norman Topacio and idle time for Norman Tonjer in the first quarter. Operating income was $125 million in the quarter, up from $73 million same quarter last year. Year to date operating income was $316 million compared to $220 million last year. 12 quarter includes 24 million accounting gain on 100% basis from the sale of Normantonier. Underlying income has also increased year on year driven by higher number of Solstad maritime vessels operating through Solstad Offshore's Brazil setup. However, this has a limited impact on the operational adjusted EBITDA, which was 17 million in the quarter, compared to 19 million in third quarter of last year. Also mentioned the $5 million reduction compared to the second quarter this year. That is mainly because of a legacy disputed charter hire of $5 million that was recognized in the previous quarter. Year-to-date adjusted EBITDA has been $116 million compared with $91 million last year, would be increased driven by improved share of results from joint ventures and associated companies. Net result was $63 million in the quarter compared with $26 million last year. Year to date net result was 130 million, up from 88 million last year. Book equity at the end of the quarter was 528 million. Corresponding to an equity ratio of 47% compared with 375 million or 44% same quarter last year. The adjusted net interest bearing debt, excluding the present value of the Norman Maximus purchase option, was in a cash positive position of $39 million at quarter end, compared with a net debt of $57 million last year. Kjetil Ramstad, Per Stange, Tor Johan Tveit, Olaug Hoines Hillesland while retaining liquidity for the upcoming vessel maintenance and expenditures and corresponding off-hire periods. Then if we go to the next slide on the depth overview for Solstad Offshore. The company has a $70 million term loan facility unchanged from second quarter. It was drawn in November 24, an ASA 5 year amortization profile, matured in November 27. Solstad Brazil term loan is of approximately 40 million, at the quarter end. This is for the financing of four Brazilian built vessels through BNDES. Maximus lease liability of 144 million consisting of 30 million of remaining bare boat lease through October 27 and then 140 million representing the present value of the declared 125 million dollar purchase option. The other liabilities of 227 million dollars, the majority 223, relates to Solstad Maritime Vessels operating through Solstad Offshore Brazil Setup. These lease agreements are supported by contracts with Brazilian end clients and the remaining 4 million relates to ROV and property leases. Net Interest Bearing Debt was 332 million at the quarter end. Adjusted for leases related to Solstad Maritime Vessels and excluding the present value of the Norman Maximus Purchase Option, the Adjusted Net Interest Bearing Debt was in a positive cash position of 39 million. Total Interest Bearing Debt and Lease Liability decreased from 505 million at the end of second quarter to 483 million dollars at the end of third quarter, mainly reflecting the lower lease commitments. So with that, we will have a look at the dividend in Solstad Offshore for the third quarter. And the company will distribute a cash dividend for the third quarter of US dollar 0.3 per share. Olaug Hoines Hillesland Olaug Hoines Hillesland Olaug Hoines Hillesland Olaug Hoines Hillesland Olaug Hoines Hillesland Key dates for the third quarter dividend. Last day record date 9th of November 26th and then distribution date on or about 20th of November 26th.

Thanks Kjetil, and let's have a closer look at the investments that Solstad Offshore has in associated companies and joint ventures. And they all represent 3 million dollars. Omega Subsea continues to develop positively. The company currently owns 20 ROVs with another 10 scheduled for delivery 27 and onwards. And over the last 12 months, the company generated approximately $100 million in revenues and about $32 million in EBITDA. We have also our two 50-50 joint ventures with SPM Offshore, where Norman Stoller, our vessel that operate or continue to operate on her contract with SPM. while the new build scheduled for delivery in the first half of 2029 will upon delivery start on a 14-year contract with options for another 11 years thereafter. and combined our joint ventures and associated companies contributed with about 24 million dollars to the result this quarter compared with 10 million dollars in third quarter last year. So these investments provide a combination of earnings, cash distribution and long-term strategic value for Solstad offshore. Turning briefly to the market and the overall demand picture within offshore energy remains positive. Brazil continues to be predominantly a long-term contract market for the anchor handlers, although the vessels with spot exposures are achieving decent utilization. We have three anchor handlers in this region, and all of them are on long-term contracts. Norman Turquesa, which is one of them, will do her dry docking in the end of the fourth quarter and also into the first quarter ahead of her new four-year contract with Petrobras. The CSV market remains active and project-oriented, but also with some longer-term opportunities. We continue to see a high fleet utilization, but there will also be some more vessels entering the market the coming year and a half or so, with quite a few new buildings being delivered. For our fleet, we will see both the Norman Maximus and the Norman Superior doing their 10-year classing in first half of 27. Norman Maximus will continue her Saipem contract thereafter, while the next job for Norman Superior has not been firmed up yet. We have several prospects we are working on, but nothing is firm at this moment. Geographically, Also Suriname, Guyana included in the areas where we see a lot of activity. At the moment we also pay special attention to the Black Sea area. where there is a security situation and one of our vessels is operating in this area at the moment. And as mentioned for Solstad Offshore, Brazil remains particularly important and our local established organization and the vessels operating through our Brazilian structure give us a strong footprint in this market. Having a look at the backlog, the backlog provides good earnings visibility for us the coming years. We have the firm backlog for Solstad Offshore for the owned vessels was around 400 million dollars at quarter end and in addition around 560 million of backlog is related to the Solstad maritime vessels operating through our Brazilian structure. For our own fleet, 95% of the days are already firm for fourth quarter. And looking into the 27, 85% of available days are already firm, providing a high degree of earning disability. Norman Maximus is reflected with its planned class renewal in first quarter, followed by the new contract already mentioned. So the combination of backlog for our own vessels and the sort of maritime vessels operating in Brazil provide us with substantial visibility into the coming years. So, Kjetil, can you say a few words about the guidance?