With innovation as a weapon. The expectations of customers who enter into long-term contracts for the purchase of our services with respect to

Transcription

1 Eidesvik Offshore ASA Annual Report

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3 Eidesvik offshore ASA 2007 With innovation as a weapon. The expectations of customers who enter into long-term contracts for the purchase of our services with respect to reliable, environmentally friendly and efficient vessels are becoming tougher for every passing year. At the same time, working on board an absolute world class vessel means a lot to our employees. Comfort is important to the crew. The vessel s equipment and performance are, however, part of what makes the job interesting. It is not difficult to foresee that the requirements for environmentally and climate friendly operations will be stricter in the future. Eidesvik has therefore focused for a long time on being in the forefront of the development of new vessel designs. The Acergy and Queen, both of which were christened in 2007, are by no means an exception. The sophisticated survey vessel, the Acergy, satisfies, for example, the highest environmental standard and is certified for operation in icy waters. The supply vessel, the Queen, is of the Avant design with the superstructure aft for better crew comfort and environmentally friendly gas-powered operation. 3

4 A t r a d i t i o n f o r Innovation 1992: Geo Explorer, the first 3D vessel in operation. 1996: Lady delivered, world s largest PSV. 1998: Poseidon delivered, first MPSV vessel. 1998: Veritas, the first of three Classe seismic vessels. 1999: Subsea delivered, customdesigned DP3 vessel for Subsea IMR. 2003: Energy delivered, first LNG supply vessel. 2003: FellowSHIP was established. This is a cross-industry collaborative project for the development of fuel cell technology for power generation on board vessels. Eidesvik collaborates with Det Norske Veritas, Vik- Sandvik, Wartsila Norge and CFC Solutions.. Continued progress We intensified our focus on the safety of our employees last year. It is therefore very satisfying that we experienced a significant reduction in the number of personal injuries resulting in lost time in The three incidents we experienced were luckily of a less serious nature, but they were nevertheless three too many. We will not be satisfied until there are no more injuries, and even then, safety shall have the highest priority. We sold three vessels in 2006 as part of the renewal of our fleet. We also had a substantial newbuild programme. There were significant delays for some of the newbuilds that were scheduled for delivery in 2007, and this displacement of earnings and loss of income from the vessels sold had a negative effect on our operating profit last year. We are nevertheless satisfied with the underlying operations, and the company will obtain full effect of the new vessels this year. At the end of 2007 the newbuild programme consisted of five vessels with a total value of around NOK 2.8 billion. During the year we entered into a historical contract with our largest customer CGGVeritas, which entailed contracting two seismic vessels with the characteristic X-bow design from Ulstein Verft. These vessels will be delivered in 2010, and both will operate on 12-year contracts with CGGVeritas. This strengthens our position as an elite player with regard to the operation of seismic vessels. Together with our partners in the FellowSHIP fuel cell project, we secured a full financing package of NOK 90 million. The project is progressing according to plan and completion is expected in the first half of This pioneering project further enhances Eidesvik s environmental profile, and we are proud to lie at the global forefront of environmentally friendly solutions for vessels. We have continued our management development programme in 2007 as part of our continuous improvement of the organisation s efficiency. We have established a career planning system for a large portion of our personnel, and in conjunction with certain other initiatives related to organisational development, we believe that this will contribute to a further improvement in the company s opportunities for the future. The market outlook is still promising, and the company is very well equipped to strengthen its position as a driving force for environmentally friendly vessels and operational solutions. I would like to warmly thank all my colleagues at Eidesvik for their wonderful efforts in 2007, and I feel confident that we will also deliver the expected results in the future. 4 Jan Fredrik Meling Managing Director

5 Eidesvik offshore ASA : Avant was delivered. A new supply vessel design, custom-outfitted for operation in the Barents Sea. Placement of the superstructure aft gives less movement and vibrations in the interior and improves thus the living and working environment. 2006: Ulstein SX 121. Ordered an X-bow design construction vessel. 2007: Ulstein SX120. Ordered two X-bow design seismic vessels. 2007: Acergy delivered. Custom ROV and survey vessel. 2007: FellowSHIP Phase II started with the planning of a qualification test for a 340 kw fuel cell on board a gas-powered supply vessel. 2008: Queen delivered with an Avant design, and it is the shipping company s second LNG supply vessel. contents Building long-term contracts stone by stone 6 On the right course for the environmental and climate 8 Innovation attracts competence 10 Fleet list 12 Contract status 14 HSE report for Corporate structur 18 Corporate governance 19 Directors report for Key figures 26 Annual accounts for 2007 group 27 Notes to the consolidated accounts 32 Annual accounts for 2007 parent company 55 Notes to the accounts - parent company 60 Oktan Alfa Copyright 2008 Eidesvik ASA Foto: Auditor s report 65 5

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7 Eidesvik offshore ASA 2007 Eidesvik s long-term customer relationships enable us to develop future-oriented vessel solutions together with our partners. The long-term contracts provide the shipping company with financial security to seek further growth. Our philosophy is based on the Western Norwegian way, building stone by stone over time, at the same time as embracing new designs. 7

8 We take responsibility for the environmental ripple effects of our operations through close cooperation with our partners. The shipping company is continuously acquiring new and innovative environmental technology to meet the global climate changes we are facing. Eidesvik s project department have been a promoter of new, cleaner ship technology for many years. We have had high ambitions. We have wanted to show what is possible. Eidesvik has often been the first to introduce pioneering technology in the industry, like when we introduced the natural gas-driven supply vessel, Energy. This vessel reduced the emission of NOx and CO2 by 88 and 20 per cent, respectively, compared with conventional diesel operation. 8 When Eidesvik commissions the gas-powered supply vessel the Lady in the autumn of 2008, we will take on board a power generator driven by high temperature fuel cells for full-scale testing. This will reduce the emissions further and improve the fuel economy. This development project is being followed with a great deal of interest by many interested parties inside and outside the maritime industry. The longer term goal is to use high temperature fuel cells for the generation of power on our vessels.

9 Eidesvik offshore ASA 2007 FUEL CELLS 9

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11 Eidesvik offshore ASA 2007 We know that highly qualified seamen like working in a stimulating environment and that professional challenges are important to their satisfaction. To retain the best and attract new employees, we must be able to offer a workplace on board the best, safest and most efficient vessels currently available. To improve our level of safety we are implementing new ship designs that emphasise the comfort of the crew, new duty schedules that ensure adequate rest between shifts. Eidesvik has a stable workforce, but our long-term philosophy requires the recruitment of younger resources. In order to attract young people showing an interest in the maritime industry, we offer traineeships and guarantee jobs to those undergoing training. 11

12 fleet list Forcados 81,24 m SEISMIC and SURVEY in order SUBSEA in order 2009 TBN Poseidon Type: TYPE: OVC/IMR Vessel Built: 2008/2009 Class: DNV + 1a1,Sf,Eo,Dynpos-Autro,Naut-Osv,Opp-F, Crane,Clean,Comfv(3), Comfc(3),Dk(+),Helidk-Sh. Length: 120,2 m Draught: 7,0m Deadweight: Acergy Type: TYPE: VS495 SV Built: 2007 Class: DNV + 1A1, SF, ICE 1c, Deice, Heldk SH, E O Dynpos AUTR, Clean Design, Comf-V(2) and Comf-C(3), Crane, Register notation DK (+) Length: 97,60 m Deadweight: Forcados Type: Subsea Built: 2002 Class: Gl 100 A5 CLS DP2 Cable Lay Ship Mc-Aut24 Length: 81,24 m Draught: 3,29 m Beam: m Deadweight: Gross Tonnage: Subsea Type: VS 4103 Multipurpose Subsea Support-Vessel Built: 1999 Umoe Sterkoder. Class: Det Norske Veritas +1A1 Supply Vessel, SF, Dynpos AUTRO, EO (LFL*), SMB Helidk-SH, dk(+). Length: 103 m Beam: 22 m Forcados 81,24 m Draught: 9,6 m GRT: Deadweight: TBN XBow SX120 Type: Seismic Research Vessel Built: 2010 Forcados Class: 81,24 m DNV Length: 106,0m Beam: 24/28m Draught: 8m Acergy m GRT: Appr t Deadweight: Appr t 2010 TBN XBow SX120 Acergy m Type: Seismic Research Vessel Built: 2010 Class: DNV Length: 106,0m Beam: 24/28m Draught: 8m Acergy m GRT: Appr Deadweight: Appr Vanquish Type: Seismic Research Vessel Built:1998 Rebuilt: 2007 Class: DNV + 1A1, SF, AUTR, EO, HELDK, DK+ Poseidon XBow 120,20m Length: 93,36 Beam: 22,20 Draught: 6,85 GRT: Deadweight: Vision Type: SEISMIC RESERCH VESSEL Built: 2007 Subsea - Class: 103 m DNV 1A1, ICE-C SF, COMF-V(3), HELDK RP EO CLEAN Length: 105 m Beam: 24 m Draught: 8,50 m GRT: Deadweight: Veritas Vantage Type: VS 492 Seismic Survey Vessel Built: 2002 Mjellem & Karlsen Verft Class: Det Norske Veritas +1A1 SF, EO Poseidon XBow 120,20m Poseidon XBow 120,20m HELDK, SMB Length: 93,35 m Beam: 22 m Draught: 7,05 m GRT: Deadweight: II Poseidon XBow 120,20m Forcados 81,24 m Poseidon XBow 120,20m Subsea m Poseidon XBow 120,20m Subsea m Subsea m Forcados 81,24 m Forcados 81,24 m Poseidon XBow 120,20m Acergy m Forcados 81,24 m Acergy m Poseidon XBow 120,20m Subsea m Acergy m Forcados 81,24 m Forcados 81,24 m Subsea m Acergy m Acergy m Subsea m Type: VS 492 Seismic Survey Vessel Built: Subsea m Mjellem & Karlsen Verft Class: Det Norske Veritas +1A1 SF, Geo Searcher EO - 69,2 m Geo Searcher - 69,2 m HELDK, SMB Length: 93,35 m Beam: 22 m Draught: 7,05 GRT: Deadweight: m 100m 100m 100m 100m 100m 100m 100m 100m 100m 0m 0m 0m 0m 0m 0m 0m 0m 0m 0m Poseidon XBow 120,20m Forcados 81,24 m Acergy m Poseidon XBow 120,20m Subsea m Acergy m Subsea m Forcados 81,24 m Forcados 81,24 m Poseidon XBow 120,20m Poseidon XBow 120,20m Acergy m Acergy m Subsea m Subsea m Geo Searcher - 69,2 m Veritas TBN XBow Vantage SX m 120,20m Veritas m Geo Searcher - 69,2 m Veritas ll m Geo Searcher - 69,2 m Veritas Vantage m Veritas Vision Vantage m m Veritas m Veritas m Veritas ll m Veritas ll m Vision m Vision m Geo Searcher - 69,2 m Veritas Vantage m Geo Searcher - 69,2 m Veritas m Veritas Vantage m Veritas ll m Geo Veritas Searcher - 69, m m Vision m Veritas Vantage ll m Veritas Vision mm Veritas ll m Veritas Vantage m Vision m Veritas Vantage m 1998 Veritas Veritas m Veritas m 100m 0m Type: VS 492 Seismic Survey Vessel Built: 1998 Mjellem & Karlsen Verft Class: Det Norske Veritas +1A1 SF, EO HELDK, SMB Length: 93,35 m Beam: 22 m Draught: 7,05 GRT: Deadweight: Veritas ll m Veritas ll m Vision m Vision m Oceanic Type: Cable Layer Built: 1996 Flekkefjord Slip- og Maskinfabrikk, rebuilt 2000 Astilleros de Cadiz. Class: Det Norske Veritas +1A1 Cable Laying Vessel, EO, DynPos AUT, dk(+) Length: 105,60 m Beam: 22,0 m Draught: 6,83 m GRT: Deadweight: m 0m

13 Poseidon XBow 120,20m Forcados 81,24 m Forcados 81,24 m Naurus m Thaumas m Eidesvik offshore ASA 2007 Surf - 70,40 m Acergy m Poseidon XBow 120,20m Naurus m Poseidon TBN XBow XBow 120,20m SX ,20m Avant m Subsea m Geo Searcher - 69,2 m Surf - 70,40 m Acergy m Acergy m Subsea m Forcados 81,24 m 1982 Geo Searcher Veritas Vantage m Avant m Energy m Subsea - Geo 103 msearcher - 69,2 m Geo Searcher - 69,2 m Veritas m 100m 0m Type: Seismic Survey Built: Th. Hellesøy 1982 Class: DnV, + 1A1, EO, Ice C Length: 69,2 m Draught: 5,25 Veritas Vantage m Veritas Vantage Energy m m Veritas ll m m Beam: 12,8 m Deadweight: Gross Vanquish - 93,35 Tonnage: m Northern Crusader - 73,60 m Thaumas m Veritas m Vision m Athene m Veritas m Northern Crusader - 73,60 m Poseidon XBow 120,20m Naurus m Veritas ll m Acergy m 2008 TBN Lady 100m 0m Vision m Vision m Type: VS 493 AVANT LNG Clean Design Built: TBN XBow SX120 Westcon, 120,20m Yard No 30, 2008 Class: DNV 1A1, Supply Vessel, SF, E0, Dynpos AUTR, Gas Fuelled, LFL*, Oil Rec, Clean Design, Comfort-V (3), Ice C, NAUT OSV (A), Fi-Fi 1. Register Queen m Avant Lady m notations DK (+) and HL (p) Length: 92,20 m Draught: 7,30 m Deadweight: Appr Subsea m Veritas ll m Lady m Athene m Surf - 70,40 m in order Geo Searcher - 69,2 m Troll m 2007 Queen Queen m Veritas Vantage m 100m 0m Energy m Type: VS 493 AVANT - LNG Built: 2007 Class: DNV +1A1, Supply Vessel,SF,E0,Dynpos- AUTR,Gas-Fuelled, Troll m Veritas m LFL*,Oil-Rec,Clean Design,Comfort-V(3), Ice-C, Reg.Not.DK(+) and HL(p) Compliance with NAUT- OSV Guidelines Length: 92,20 m Draught: Appr 7,60 m Deadweight: Appr Veritas ll m Northern Crusader - 73,60 m 2006 Athene Vision m 100m 0m Type: VS470 MK II Built: 2006 Class: DnV, +1A1 Length: 73,40 m Deadweight: Approx Athene m Lady m Forcados 81,24 m Forcados 81,24 m Poseidon XBow 120,20m 2005 Thaumas Thaumas m Queen m 100m 0m Thaumas m Type: VS470 MK2 Built: 2005 Class: Det TBN Norske XBow SX ,20m Veritas 1A1, SF-EO Length: 73,40 m Beam: 16,60 m Draught: 7,60 m GRT: Deadweight: Poseidon XBow 120,20m Naurus m Troll m Naurus m Surf - 70,40 m Acergy m Acergy m Subsea m Forcados 81,24 m Subsea m Forcados 81,24 m 2004 Avant Surf - 70,40 m Avant m 100m 0m Geo Searcher - 69,2 m Type: VS493 SUPPLY VESSEL Built: 2004 Class: Det Norske Veritas 1A1, Ice C, SF, EP. Dynpos Autr, LFL*, CLEAN, COMF-V (3) Standby Vessel, oilrec, deice comp with deice C,con-tainer, Reg. Notation DK(+) and HL(p) Veritas Vantage m Length: 92,20 m Beam: 20,40 m Draught: 9,0 m GRT: Deadweight: Geo Searcher - 69,2 m Poseidon XBow 120,20m Naurus m Avant m Thaumas m Energy m Thaumas m Veritas Vantage m Energy m Acergy m 2004 Nereus Veritas m Poseidon XBow 120,20m Naurus m Acergy m Forcados 81,24 m Veritas m Northern Crusader - 73,60 m 100m 0m Veritas ll m Thaumas m Type: Platform Support Vessel Built: 2004 West Contractors Class: Det Norske Veritas, + 1A1 - Supply Vessel, SF, Dynpos AUT, E0 Length: 73,40 m Beam: 16,60 m Draught: 7,60 m GRT: Deadweight: Athene m Veritas ll m Vision m Poseidon XBow 120,20m Subsea m Geo Searcher - 69,2 m Vision m Surf - 70,40 m Northern Crusader - 73,60 m Surf - 70,40 m Avant m Naurus m Athene m PSV Avant m Subsea m Acergy m Forcados 81,24 m Subsea m Forcados 81,24 m Poseidon XBow 120,20m Acergy m Acergy m Subsea m Forcados 81,24 m 2003 Energy Type: VS 4403 Built: 2003 Kleven Verft Class: DnV +1A1, Supply Vessel, SF, E0, Dynpos AUTR, Gas Fueled, LFL*, Oil Rec, Clean Class, Comfort Class rating 3, Register notations DK (+) and HL (p) Length: 94,90 m Geo Searcher - 69,2 m Beam: 20,40 m Draught: 9,6 m GRT: Deadweight: Surf Veritas m Type: VS 470 Platform Supply Vessel Built: 2002 West Contractors Class: Det Norske Veritas +1A1 Supply Vessel E0-SF FI-FI I, Dynpos Aut, dk(+) Length: 70,4 m Beam: 16,6 m Draught: 6,5 m GRT: Veritas ll m Geo Searcher - 69,2 m Deadweight: Dynamic Veritas Vantage m Geo Searcher - 69,2 m Veritas m Veritas Vantage m Veritas ll m Veritas m Veritas Vantage m Vision m Veritas ll m Lady m Surf - 70,40 m 100m 0m Poseidon XBow 120,20m Naurus m Subsea m Poseidon XBow 120,20m Acergy m 100m 0m Vision m Geo Searcher - 69,2 m Vision m Veritas Vantage m Veritas Vantage m 100m 0m Energy m Lady Naurus m m Veritas Oceanic TBN XBow SX m - 105,60 120,20m m Type: VS490 Platform Support Vesse Built: 2002 Aker Aukra Class: Det Norske Veritas +1A1, Supply Vessel, SF, E0, LFL*, Dynpos AUTR. Register notations DK (+) and HL (p) Clean Length: 90,2 m Beam: 19 m Northern Crusader - 73,60 m Veritas ll m Surf - 70,40 m Draught: 8,4 m GRT: Deadweight: Veritas m Veritas ll m Lady m Thaumas m Thaumas m Queen m Avant m Energy m Northern Crusader - 73,60 m Queen m Naurus m Troll m Troll m Northern Crusader - 73,60 m Athene m Energy m Surf - 70,40 m Surf - 70,40 m Athene m Lady m Northern Avant Crusader m 73,60 m Avant m Lady m Queen m Thaumas Athene mm Energy m Energy m Troll m Queen m Troll m Northern Crusader - 73,60 m Queen m Subsea m 2000 Troll Vision m Vision m 100m Geo Searcher - 69,2 m Type: Anchor Handling Tug Supply Vessel (AHTS) Oceanic - 105,60 mbuilt: 2000 Class: DNV 1A1 Tug Support Vessel, Length: 73,80 m Beam: 16,00 m Draught: 6,50 m GRT: Deadweight: 2881 Veritas Vantage m 0m Athene m Athene m Avant m Troll m Lady m Lady m Energy m Queen m Queen m Veritas m 1992 Northern Crusader Veritas ll m 100m 0m Type: ME 303 Mk II Anchorhandling Tug Supply Vessel Built: 1992 U.DLL., Singapore Class: Det Norske Veritas, +1A1 + MV, EO, tug/supply OIL REC Length: Vision m 73,60 m Beam: 16,40 m Draught: 8 m GRT: Deadweight: Northern Troll Crusader m- 73,60 m Troll m Athene m 13 Lady m Queen m

14 Contract status 2000 forcados Forcados 81,24 m Forcados 81,24 m Forcados 81,24 m Forcados 81,24 m Poseidon XBow 120,20m Poseidon XBow 120,20m Poseidon XBow 120,20m TBN Poseidon Poseidon XBow 120,20m Acergy m Acergy m Acergy m Acergy Acergy m Subsea m Subsea m Subsea m Subsea m Geo Searcher - 69,2 m Geo Searcher - 69,2 m Geo Searcher - 69,2 m Geo Searcher - 69,2 m Subsea Veritas Vantage m Veritas Vantage m Veritas Vantage m Veritas Vantage m Forcados 81,24 m Forcados 81,24 m Thaumas m Thaumas m Veritas m Forcados 81,24 m Thaumas m Veritas m Forcados 81,24 m Thaumas m Veritas ll m Naurus m Veritas Naurus m ll m Veritas ll m Thaumas m Thaumas m Veritas ll m V i k i n g V an q u i s h Poseidon XBow 120,20m Poseidon XBow 120,20m Forcados 81,24 m Forcados 81,24 m Veritas m Veritas m TBN XBow SX120-93,35 120,20m Vanquish m Poseidon XBow 120,20m TBN XBow SX120 Naurus m Vision m Poseidon XBow 120,20m Forcados 81,24 m Acergy m XBow 120,20m AcergyPoseidon m Forcados Poseidon 81,24 XBowm 120,20m Forcados 81,24 m Vanquish m TBN XBow SX120-93,35 120,20m TBN XBow SX120-93,35 120,20m Vanquish m Acergy m TBN XBow SX121 Acergy m Poseidon XBow 120,20m Subsea m Subsea m Poseidon XBow 120,20m Acergy m AcergyPoseidon m XBow 120,20m Subsea m Naurus m m Vision Surf - 70,40 m Vision m Surf - 70,40 m Thaumas m Vision m Naurus m Naurus m Thaumas m Surf - 70,40 m Thaumas m Surf - 70,40 m Oceanic - 105,60 m Avant m Oceanic - 105,60 m Avant m Naurus m - 105,60 m SurfOceanic - 70,40 m Surf - 70,40 m Geo Searcher - 69,2 m Geo Searcher - 69,2 m TBN SX ,20m 120,20m TBN XBow XBow SX120 Avant Naurus mm Naurus m Avant m Geo Searcher - 69,2 m Geo Searcher Surf - 70,40 m Subsea m Acergy m Veritas Vantage m Geo Searcher - 69,2 m Veritas Vantage m Subsea m Subsea m Acergy m Acergy m Geo Searcher - 69,2120,20m m TBN XBow SX120 Veritas Vantage m Geo Searcher - 69,2 m Veritas m Veritas Vantage m Veritas m V e r i ta s V anta g e Subsea m Energy m Avant m Energy m Avant m Subsea m Subsea m Avant m Avant m Energy Surf - 70,40 mm Energy m Surf - 70,40 m Veritas Vantage m Geo Searcher -- 69,2 m Veritas Vantage m Veritas 93.35m Avant m Northern Crusader - 73,60 m Northern Crusader - 73,60 Energy m m Energy m Geo Searcher m Veritas -ll69, m --ll69, m Veritas m Geo Searcher m Northern Crusader - 73,60 m -ll 93.35m Veritas Vantage 93.35m Veritas m Veritas m V e r i ta s V i k i n g Veritas Vantage m Vision m Veritas m Veritas Vantage 93.35m Vision -ll m Veritas ll m Veritas --ll m m Vision m Veritas m Vision m Veritas m V i k i n g II Vision m Veritas --ll m Vision m Northern Crusader - 73,60 m Energy Athene m m Athene m Energy m Northern Crusader - 73,60 m Northern Crusader - 73,60 Energy m m Athene m Athene m Lady m Lady m Northern Crusader - 73,60 m Athene m Athene m Northern Crusader - 73,60 m Lady m73,60 m Northern Crusader Veritas ll m Veritas ll m Lady m Vision m Vision Vision m Vision m Queen Athene 73.40m m Queen m Lady m Lady m Athene m Athene m Queen m Troll m Troll Queen mm Lady m Lady mm Queen Queen Troll mm Lady m Troll m O c e an i c V i k i n g Troll mm Queen Troll m Queen m Queen m Thaumas m Thaumas m Troll m Thaumas m Troll m Thaumas m Thaumas m Thaumas m Troll m Vik in g Th aum a s Naurus mm Thaumas TBN XBow SX120-93,35 120,20m Vanquish m Nereus TBN XBow SX120-93,35 120,20m Vanquish m Surf TBN XBow XBow SX120 TBN SX ,20m 120,20m Geo Searcher - 69,2 m Naurus m Thaumas m Thaumas m Naurus m Naurus m Naurus m Thaumas Naurus mm Surf - 70,40 m Naurus m Surf - 70,40 m Naurus m Surf Naurus ,40 m m Surf - 70,40 m Surf - 70,40 m Surf - 70,40 m Naurus m Avant m Surf - 70,40 m Avant m Surf - 70,40 m Surf - 70,40 m Avant m Geo Searcher - 69,2 m Avant m Avant m Avant Surf - 70,40 mm Geo Searcher - 69,2 m Avant m V i k i n g A vant Geo Searcher - 69,2 m TBN XBow SX ,20m Geo Searcher - 69,2 m Veritas Vantage m Geo Searcher - 69,2 m Geo Searcher - 69,2 m Veritas Vantage m Avant m Energy mm Avant Energy m Geo Searcher - 69,2 m Veritas Vantage m Geo Searcher - 69,2 m Veritas Vantage m Veritas Vantage m Veritas m Veritas Vantage m Veritas Vantage m Geo Searcher - 69,2 m Veritas m V i k i n g En e r g y Avant m Energy m Energy m Energy m Energy m Energy m Veritas Vantage m Veritas m Veritas Vantage m Veritas m Veritas ll m Veritas m Veritas m Northern Crusader - 73,60 m Energy m Veritas 93.35m Veritas Vantage -ll 93.35m m Northern Crusader - 73,60 m Energy m m Northern Crusader - 73,60 Northern Crusader - 73,60 m Northern Crusader - 73,60 m Veritas Veritas -ll 93.35m m Veritas ll m Veritas m Northern Crusader Veritas ll m Vision m Veritas -ll m Veritas ll 93.35m m Veritas Vision m Veritas ll m Vision m Veritas ll m Vision m Vision m Vision m Northern Crusader - 73,60 Energy m m Athene m Northern Crusader - 73,60 m Athene m Northern Crusader - 73,60 m Northern Crusader - 73,60 m Athene m Athene m Athene m Athene m m Northern Crusader - 73,60 Lady mm Athene Oceanic 105,60 Vision -ll mm Veritas m V i k i n g At h e n e Vision m Vision m Vision mm Oceanic - 105,60 Lady m Athene m Athene m Lady m Lady m Lady m Lady Athene mm Lady m Queen m Lady m Queen m Lady m Queen Queen m Queen m Lady m Queen m Troll mm Queen Queen m Troll m TBN Lady 14 Queen m Troll m Queen m Troll m Troll m Troll m mm Troll Queen Troll m Troll m Troll m V i k i n g T r o ll

15 Eidesvik offshore ASA 2007 Contract Options Spot

16 The quality system in the Eidesvik Management System has been certified by DnV and satisfies the requirements of ISM, ISO 9001:2000 and ISO 14001: HSE REPORT FOR Health, safety and environmental reporting We had three lost-time injuries in The injuries were as follows: Fractured rib during the operation of an MOB boat. Sprained hand during the handling of hawsers. Broken leg after slipping on a slippery deck. Lost-time incident rate LTI rate per million hours Incidents that have resulted in material damage: Damage to hull and helicopter deck of a seismic vessel when docking in October. To prevent damage and injuries we attach importance to the following measures: Increase the reporting of near-misses. This gives us an opportunity to be more preventative with respect to injuries. Extensive use of Safe Job Analyses to avoid accidents and injuries by reviewing the jobs step by step and illustrating any hazards Hold more Toolbox meetings. By including those performing the jobs in the evaluation of any hazards associated with the work concerned, we can contribute to the prevention of accidents and injuries. Work on board is performed based on a Work Permit System. This contributes to the prevention of accidents and injuries by requiring a permit from the vessel s management to perform hazardous jobs. Working environment measures In 2006 we continued to follow up sickness absence and to develop the company further as an Inclusive Working Life company. Feedback from this work has been very positive. We see improvements in the psychosocial working environment. This applies in particular to preventive measures on board. For example, prevention of bullying at the work place, and drawing attention to overexertion and stress on board. We have conducted internal health inspections on several of our vessels. Sickness absence Sickness absence was 4.1% in 2007, which is a decline from the previous year. Measures to reduce sickness absence have included: Use of a systematic methodology that included, for example, a questionnaire Psychosocial surveying of employees Follow-up of sickness absence Analysis of costs associated with sickness absence.

17 Eidesvik offshore ASA 2007 External environment An excerpt from our environmental accounts for 2007 is presented below: Type of Volume Impact on the commodity consumed environment Marine diesel m 3 CO2, NOX, og SO2 Natural gas 7088 m 3 CO2, NOX Lubricating oils 623 m 3 CO2, NOX, og SO2 Chemical agents (cleaning) 21 m 3 Low Coolant 14 m 3 Freon Type Volume discharged to sea impact Separated bilge water 444 m 3 None Food waste 59 m 3 None Type Volume delivered to land Treatment/Impact Waste 998 m 3 None Paper and cardboard 80 m 3 Recycled Wood 1,4 tonnes Recycled Metal 10 tonnes Recycled Plastic 5,6 tonnes Recycled Glass 1,8 tonnes Recycled Sludge 702 m 3 Recycled Batteries 1,5 tonnes Recycled Oil barrels 1121 Recycled Paint cans 0,8 tonnes Recycled Hazardous waste 0,3 tonnes Special treatment Incinerator ash 17,5 tonnes Special treatment Scrap steel 0,4 tonnes Recycled Paint 0,37 m 3 Special treatment Volume incinerated Volume on board impact Waste 2342 m 3 CO2, NOX Sludge 131 m 3 CO2, NOX, SO2 Small volumes have been reported as discharged by accident: Chemicals 30 l Impact on the environment is negligible Hydraulic oil 70 l Impact on the environment is negligible Diesel oil 240 l Impact on the environment is negligible Liquid mud 500 l Impact on the environment is negligible Slops 200 l Impact on the environment is negligible The most important measures for improving the environment: Impact Type environment Measures Exhaust gas Air pollution Install gas-powered engines on our vessels Install exhaust catalysers Rebuild engines Optimise speed Optimise use of engines Improve maintenance Incinerator Air pollution Increase deliveries to shore Improve maintenance Improve the design Boiler Air pollution Improve maintenance Replace with a better type Oil and chemicals Pollution of the sea Install oil boom equipment SOPEP equipment training Discharge of NOx from Eidesvik vessels in the Norwegian sector Kg NOX / MWh

18 Corporate structure 100% Langevåg Senter AS 100% 100% Eidesvik Seismic Vessel AS Surf AS 100% 100% Eidesvik Subsea AS Troll AS Eidesvik Offshore ASA 100% Eidesvik Shipping Ltd 22% 100% Eidesvik Shipping International AS 100% 100% Eidesvik Subsea Vessel AS 50% Troll DIS Eidesvik OCV AS Eidesvik OCV KS 3% 10% 100% 100% Eidesvik Shipping AS Eidesvik MPSV AS 100% 40% Eidesvik AS OMAK Maritime Ltd 18

19 Eidesvik offshore ASA 2007 Corporate governance The company has implemented guidelines for corporate governance based on the recommendations and guidelines given by the Oslo Stock Exchange. The purpose of these guidelines is to clarify the division of roles between shareholders, the General Meeting, Board of Directors and day-to-day management beyond what follows from the legislation. These principles cover key elements such as: - instructions for the Board of Directors and Managing Director - company s core values and ethical standards - guidelines for planning and budget work, handling of price-sensitive information and insider trading - approval of remuneration to be paid to senior executives - guidelines for use of the auditor - guidelines for information from the company The company has decided for the time being not to have a separate nomination committee or corporate assembly, since the Board of Directors does not see any advantages of this for a company with Eidesvik s structure. The corporate governance guidelines do not discuss the dividend policy. In connection with the stock exchange introduction in the summer of 2005, it was announced that the company would follow a moderate and predictable dividend policy, taking into consideration the future investment needs and growth rate. A detailed summary of our corporate governance principles may be found on our website. Eidesvik Offshore ASA was listed as company no. 200 on the Oslo Stock Exchange on 27 June

20 Eidesvik Offshore ASA Organisation number DIRECTORS REPORT FOR Eidesvik Offshore ASA is a company that is innovative and a provider of good seamanship. We shall be a driving force for future-oriented and environmentally friendly shipping and operational solutions. Our goal is to increase and secure the company s long-term creation of value for further growth, and to guarantee good workplaces for our employees and a good return for our owners. This is achieved, for example, by securing a great deal of long-term employment for our vessels and thus securing predictable and long-term earnings in a traditionally volatile market. The Eidesvik Group continued its focus on the expansion and renewal of its fleet in In July 2007 the shipping company took delivery of a new seismic vessel, the Vision, and the Poseidon was converted to a seismic vessel. Conversion of the vessel was completed in November 2007, and the name was changed to the Vanquish. Both of these seismic vessels were employed on eight-year contracts with CGGVeritas. In addition, the subsea vessel, the Acergy was delivered in December The vessel was employed on an eight-year contract with Acergy. The first of the two contracted gas-powered PSVs of the Avant design (wheel house aft) was christened the Queen in December 2007 and delivered in January Two new vessels have been ordered for delivery in They are seismic vessels of the Ulstein X-bow design, both of which are fixed on 12-year contracts with CGGVeritas. In 2006 a contract was entered into for the sale of the Kingfisher to the charterer, who had a purchase option. This was delivered to the buyer in January 2007, but Eidesvik still is responsible for the crewing and operation of the vessel. Operations Eidesvik Offshore ASA is the parent company of the Eidesvik Group. The object of the company is to engage in shipowning activities, as well as any related business activities, including the ownership of shares and units in companies that are engaged in corresponding or related activities. Throughout 2007 this object was realised through the operation of 21 vessels, 16 of which are consolidated in the group, two of which are chartered on a bareboat basis, one of which is chartered on a time charter basis, and two of which are operated on management contracts. The vessels were mostly chartered on long-term contracts in the supply, seismic and subsea segments. In addition, the group had the following five vessels on order at the end of the year: two supply vessels of the VS493-GassAvant type scheduled for delivery in January 2008 and the fourth quarter of 2008, one subsea vessel scheduled for delivery in the fourth quarter of 2008, as well as two seismic vessels scheduled for delivery in the first and second quarters of 2010, respectively. This represents total investments of around NOK 2,800 million. The group sold one vessel for a total of NOK 140 million in The group s operations are managed from the head office at Langevåg in Bømlo. The shipping operations are organised in accordance with the rules for Norwegian shipowner taxation through Eidesvik AS as the operating company and several shipowning companies. The offices of the subsidiary Eidesvik Shipping Ltd are located in Hook outside of London. The operations in Nigeria are coordinated through the associated company OMAK Maritime Ltd, a company in which Eidesvik owns 40 per cent. Health, Safety and the Environment The group assigns high priority to Health, Safety and the Environment (HSE). In 2006 our quality and safety system was certified in accordance with the requirements in ISM, ISO 9001:2000 and ISO 14001:2004. The HSE reporting system on board the vessels is based on an online system that simplifies the administrative procedures and provides a better foundation for evaluating and implementing preventative measures.

21 Eidesvik offshore ASA 2007 The management performs continuous educational work in the HSE field and focuses in particular on the exchange of experience to facilitate continuous improvement. Sickness absence was 4.1% in 2007, which is a decline of 0.3% from The company s LTI rate was 1.39 in 2007, which is a decline from 2.07 in Eidesvik AS has chosen to continue its Inclusive Working Life (IA) agreement with the National Insurance Service, which ensures close follow-up of sickness absentees through its cooperation with Norsk Rederihelsetjeneste AS. This company is located in Bømlo and operates with a licensed marine physician and nurse. We have actively worked on both the physical and psychosocial working environment through a working environment survey of the shipping company s employees, with a continuous focus on improvements. In 2007 we continued to participate in an exciting Fatigue Management System in cooperation with Norsk Rederihelsetjeneste, which entails a change in the duty system, daily cycle and diet, and has resulted in improved sleep quality. Based on research from the US, this results in greater alertness, better safety and an improved quality of life for our employees. This project will continue on board several vessels in There were a total of 578 permanent employees in the company at the end of the year. Eidesvik actively markets a career in the maritime industry and has a scholarship scheme for young people who embark on a maritime education. Importance is attached to diversity, and we would like to see more women on board our vessels. External environment Eidesvik pursues a goal-oriented environmental policy. In recent years the group has headed an extensive programme to develop more environmentally-friendly and energy-saving vessels. We have had very good experience from gas-powered operation. The group commissioned a new supply vessel powered by LNG in January 2008, and it has another vessel scheduled for delivery in the fourth quarter of These vessels will operate on long-term contracts with StatoilHydro and Total, respectively. Eidesvik is participating in an exciting development project for the use of fuel cell technology on vessels. The prototype for the first fuel cell system for vessels is under construction and will be installed on Eidesvik s next GassAvant vessel, which will be delivered in the fourth quarter of This technology will greatly reduce the emission of greenhouse gases to the air due to a significant reduction in fuel consumption. Our operations at sea comply with strict national and international laws and regulations. To reduce the risk of accidents, great importance is attached to preventative maintenance and ensuring that our vessels are crewed by highly qualified personnel. The group s onshore operations do not pollute the external environment beyond what is normal for such operations. A separate HSE report has been prepared and is included in the group s annual report. Shareholders, corporate governance and management There was a total of 30,150,000 shares in the company at the end of the year. In 2007 a total of 97,500 options were allotted to members of the management group. A total of 130,000 options have been allotted to the group s management after this allotment. There was a total of 718 shareholders at the end of the year. Of these shareholders 25 were foreigners representing an ownership interest of 7.60 per cent. The share traded at NOK at the end of the year. The Board of Directors has been authorised to buy back the company s own shares for a total nominal amount of NOK 150,000. The total nominal value of the shares held by the company may, however, not exceed 10 per cent of the registered share capital at any given time. This authorisation will be valid until the ordinary General Meeting in The Board of Directors will propose that this authorisation be renewed for one year by the company s General Meeting. The company did not own any of its own shares as of 31 December All information shall be disclosed in such a manner that the all shareholders are treated equally. Information will be distributed through company disclosures to the stock exchange, press releases and open presentations, and it will be made available at the same time on the group s website. The Norwegian Code of Practice for Corporate Governance has been used as the basis for the company s governance and management. Minor company specific changes and adaptations have been made to this recommendation. A separate statement has been made concerning this in the annual report and on the group s website. The company does not have a nomination committee. The Board of Directors will function as the nomination committee until further notice. When nominating candidates, emphasis will be placed on seeking competence and qualities that can complement those who will continue to sit on the Board of Directors. The composition of the company s Board of Directors is such that 40% of the members are women. Results, balance sheet and financial risk The consolidated accounts have been prepared in accordance with the IFRS regulations. The parent company accounts have been prepared in accordance with the Generally Accepted Accounting Principles in Norway. Eidesvik AS is responsible for the business operation and general management of the ship-owning companies under separate agreements. All the employees 21

22 22 are employed by Eidesvik Offshore ASA, Eidesvik AS, Eidesvik Subsea AS, and Eidesvik Shipping Ltd. Results The consolidated operating revenues for the group were NOK million in 2007 (NOK million in 2006). The figures for 2007 include gains on asset sales totalling NOK 29.1 million, while the figures for 2006 include NOK million in gains on asset sales. The reduction in freight income is due primarily to a reduction in the number of vessels in operation. This is a result of the sale of old vessels at the end of 2006 and early in 2007, at the same time as the delivery of newbuilds and conversion of vessels have been delayed. The operating profit before depreciation (EBITDA) for 2007 was NOK million, including a gain of NOK 29.1 million (NOK million, including a gain of NOK million, in 2006). The operating profit for the year has not been affected to any significant extent by fluctuations in the general market, as most of the vessels are fixed on long-term contracts. NOK million in depreciation was charged against income in 2007 (NOK million). Overall this gives an operating profit after depreciation of NOK million for 2007 (NOK million). The company has posted a loss of NOK 16.8 million in connection with an associated company. This includes both provisions related to the investment made and provisions related to a loan to the associated company. None of the losses have been established as final. The net financial items for the year of NOK 46.3 million (NOK 34.5 million) have been affected greatly by the weakening of the USD exchange rate in relation to NOK throughout the year. As a result of this the company has recognised unrealised gains on its debt obligations denominated in USD. The pre-tax profit for the year was NOK million (NOK million). The group s taxes for 2007 were NOK million, which gives a consolidated profit after tax of NOK million (NOK 296.4). NOK million of the taxes are charges related to the discontinuation of the old shipping company taxation scheme. The earnings per share (weighted) were NOK (NOK 9.63). For the parent company Eidesvik Offshore ASA the profit for the year after tax was NOK 13.8 million (NOK 10.2 million). Balance sheet The group s book equity was NOK 1,478.7 million including minority interests of NOK 26.8 (NOK 1,524.6 in 2006). The group s book equity is 34.6 per cent of the total capital. In the parent company, Eidesvik Offshore ASA, the equity was NOK million (NOK million). Vessels (including vessels held for sale) and payments on newbuild contracts increased by NOK million during the year, while the group s current assets declined by NOK 79.9 million. The total assets were NOK 4,273.0 million, an increase of NOK million. Market assessments have been obtained for the vessels from three independent brokers. These brokers concluded that the total excess value of the vessels in relation to the book value was NOK 1,869 million on a contractfree basis. Due to the fact that some of the long-term contracts have rates that are lower than what could be achieved in the short-term market, the excess value of the vessels is lower than indicated by the broker estimates. The Board of Directors finds, nevertheless, that the vessels have significant excess value in relation to the book value. The group s current liabilities declined by NOK million during the year to a total of NOK million, which includes the portion of long-term debt that matures within 12 months totalling NOK million and the environmental portion of the tax liabilities after the discontinuation of the old shipping company taxation scheme totalling NOK million. Long-term debt was NOK 2,203.4 million, which represents an increase of NOK 1,320.6 million. In 2007 the company refinanced short-term credit facilities of NOK 650 million into longterm debt. In addition, long-term debt has been drawn down in connection with newbuilds and conversions. Cash flow The group s cash and cash equivalents increased from NOK million at the end of 2006 to NOK million as of 31 December The Board of Directors expects a significant strengthening of its cash reserves in Net cash flow from operational activities was NOK million for 2007 (NOK million). The net negative cash flow in connection with investment activities of NOK million (NOK -592,7 million) is due to the payment of the Vision, Acergy and Vanquish, as well as significant payments in connection with the current newbuild programme. In coming cash flow related to investment activities was from the sale of the King fisher. The group s net cash flow from financing activities was NOK million (NOK 71.2 million). This is primarily due to borrowing in connection with the payment of new vessels and refinancing of some older vessels, as well as ordinary repayment of the group s long-term debt. Allocation of the profit The Board of Directors proposes the following allocation for the profit for the year of NOK 13.8 million for Eidesvik Offshore ASA: Transferred to other reserves: 2007: NOK 13.8 million The Board of Directors will propose to the company s General Meeting on 19 May 2008 that a dividend of NOK 1 per share totalling NOK million be paid. The amount will be taken from the company s distributable equity that has

23 Eidesvik offshore ASA 2007 previously been paid as a share premium. The dividend will therefore be regarded as the repayment of paid-up capital for tax purposes. The dividend will be distributed to the shareholders on record at the close of the day of the approval of the dividend. The payment will be made approximately 14 days after this date. The company s distributable equity is NOK million. Going concern The Board of Directors considers the financial position of the company and group to be sound. The prerequisites for continued operations have been met by the company in accordance with Section 3-3 of the Norwegian Accounting Act, and the annual accounts have been prepared accordingly. There were no post-balance sheet events that are likely to significantly affect the assessment of the company s financial position and results. Financial risks Foreign currency risk In 2007 the group s income was in NOK and USD. Operating expenses are primarily in NOK; while a significant portion of the debt is in USD. The group is exposed to fluctuations in foreign exchange rates for a substantial portion of its income in foreign currencies. To reduce the risk, cash flow hedging has been established for portions of the company s long-term financing established in foreign currencies. In addition, forward contracts have been entered into for portions of the group s operating revenues in USD. Contracts have been entered into to hedge a significant portion of the group s long-term debt. Credit risk The group s customers are primarily solid companies with a good ability to pay. The risk that contracting parties do not have the financial capacity to fulfil their obligations is regarded as low for most of the contracts. This is supported, moreover, by the fact that historically the losses on receivables have not been significant. owned company Omak Maritime Ltd.. There have been significant delays here with regard to payments from charterers to Omak and subsequent payments to Eidesvik. The company focused on reducing the outstanding accounts with Omak throughout The outstanding accounts totalled NOK 64.2 million before the deduction of provisions for losses as of 31 December The group has monitored this situation closely and the out standing accounts have been reduced in the first quarter of Provisions of NOK 26.1 million have been allocated in the accounts to accommodate potential losses. Liquidity risk The group has negotiated long-term financing for the vessels scheduled for delivery in The Board considers accordingly the group s liquidity to be satisfactory. Regulatory framework The new shipping company taxation scheme that the Norwegian authorities adopted in 2007 is considered to be competitive in relation to other international schemes. This is under the assumption that we can trust that the scheme will be of a permanent nature. The shipping companies that participated in the old scheme in 1996 also assumed that it would be of a permanent nature. Eidesvik believes therefore that the transitional rules adopted in 2007, which actually entail taxation with retroactive effect for the entire period from 1996 to 2007, are wrong. The company will therefore carry out any transactions that are necessary to secure the shareholders assets in the best possible manner. In our experience Norwegian crews on our vessels enable us to deliver an optimum product, which in turn helps our customers achieve a better overall result. The group employs therefore a high proportion of Norwegian seamen and would like to be able to do so in the future as well. training office, Eidesvik has established a guarantee scheme for new engineer and navigator graduates. They are guaranteed trainee positions on vessels after they complete their training to obtain the requisite licenses. Business areas and outlook The underlying factors, such as high oil prices and a high level of activity in the global petroleum industry as a result of this, are still positive. A large number of new rigs and floating production vessels will come into operation in the next few years. We have a positive outlook for the future due to a great deal of subsea development activity and the oil companies increasing exploration budgets. We are, however, still concerned about the major newbuild programme in the supply and anchor handling vessel segment. Supply and Anchor Handling North Sea: At the end of 2007, 203 vessels operated in the North Sea, which corresponds to a decline of around 11 per cent from the previous year. Of these vessels, 140 were on time charters, which corresponds to 78 per cent of the fleet. This is a decline from the previous year. We also see that the operators want to secure vessels on time charters rather than being exposed to the spot market. The utilisation factor has been high for both the platform supply and anchor handling segments, with only small seasonal adjustments. We believe that this development will move in the direction of stricter requirements for the external and internal environments, which will require more advanced vessels. These vessels will always be the most attractive to the operators. Eidesvik will continue to develop and build vessels that are in the forefront of the developments in these areas. West Africa: The market in West Africa is growing, and there has been a great demand for vessels in this region in 2007 as well. The company s operations in Nigeria are carried out through the 40 per cent In cooperation with other shipowning companies in the region and the maritime The oil companies are now requesting new tonnage in this area. The Board of 23