Approval of the Annual Accounts 2019

The Board of Directors of Eidesvik Offshore ASA (“Eidesvik” or the “Group”) has today approved the financial statements for 2019 for both the Group and the parent company.

The EBITDA* for the Group was MNOK 243.2 for 2019, a significant improvement from MNOK 96.9 for 2018. The Board is pleased with this development in 2019.

In 2020 the World has been hit by the Covid-19 epidemic combined with a significant decline in oil prices. This have led to substantial changes in the market for oil service vessels – contracts have been cancelled and oil companies world-wide have implemented reductions in their investment plans. When preparing the annual accounts for 2019, the impairment tests for the Group’s vessels from February 2020 have been updated in April 2020 based on the information then available. As a consequence, total impairment charges of MNOK 569.7 have been booked in the Annual Accounts for 2019. The additional impairment charges are the main reason for that the Group’s Annual result was a loss of MNOK 690.3, which is a significant increase from the loss of MNOK 143.6 as reported in the preliminary accounts for 2019 published in February 2020.

At December 31, 2019, improvements in the leading indicators were observed, however indicators of impairment were still present and the Group’s assessment of impairment was updated based on the information then available. Due to a further negative outlook into 2020 caused by the drop in oil price, the Covid-19 epidemic, the Company’s assessment of the general market conditions and an updated analysis of the discount rate, the assessments have also been updated as of April 2020.

The Group’s equity is reduced accordingly. The impairment charges have no liquidity effect.

The Annual General Meeting is scheduled for May 20, 2020, at Bømlo in accordance with the financial calendar. Notice of the Annual General Meeting and the agenda with attachments will be published through Oslo Børs and Notice of the General Meeting will also be sent electronically through VPS or by post to the registered address of each shareholder.

Bømlo, April 29, 2020.

CEO Jan Fredrik Meling (+47 916 75 119)
CFO Tore Byberg (+47 475 09 012)

*) EBITDA is defined as operating profit before depreciations and impairments.

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.