Enters into Memorandum of Agreement for sale of the CSV Viking Neptun

Eidesvik Neptun AS, a subsidiary of Eidesvik Offshore ASA (“Eidesvik” or the “Company”), has on January 12, 2022 entered into a Memorandum of Agreement (“MoA) with Dredging, Environmental and Marine Engineering NV (“DEME”), for the sale of the CSV Viking Neptun. The MoA is expected to complete in the 4th Quarter of 2022, post completion of the ongoing contract with Havfram.

Based on the terms of the MoA, Eidesvik expects to reverse approximately MNOK 240 in previous impairments on the vessel in the 4th Quarter 2021 results. Further, at completion of the MoA in the 4th Quarter of 2022, Eidesvik expects to book a gain from the sale of approx. MNOK 150. In total, the expected reversal of previous impairments and expected gain from the sale will significantly increase shareholders’ equity in the consolidated accounts when the vessel is delivered to the buyer. In addition, Eidesvik maintains full rights to all earnings from the vessel until delivery to DEME is scheduled to take place in the 4th quarter of 2022. At completion of the MoA, Eidesvik’s liquidity position is expected to improve by approximately MNOK 330 from the sale.

Gitte Gard Talmo, President & CEO of Eidesvik Offshore ASA, comments:

“The sale will considerably strengthen the Company’s financial position, and enable us to reinforce our strategic focus on pioneering new emissions-reducing technologies in our fleet. Our spearhead vessel projects are attracting significant interest in the market and we will continue to develop our offerings of climate and environmentally friendly solutions to offshore vessel operations”.

As the MoA is scheduled to complete in the 4th Quarter of 2022, Eidesvik will continue to deliver safe and efficient operations under the contract with Havfram in 2022, as well as keeping the vessel well maintained during the period.

Eidesvik and DEME are also currently discussing potential alternatives for Eidesvik and/or its crew to provide management services to DEME for the vessel after completion of the MoA.

“We are very pleased to welcome Viking Neptun to the DEME family. The high-tech vessel has a proven track record of delivering high performance and is a great addition to our offshore fleet. Eidesvik and DEME share a complementary focus on pushing for more environmentally friendly operations and we will also investigate opportunities for further cooperation between our two companies”, says Managing Director of DEME Offshore, Hugo Bouvy.

“Collaboration between companies is key to reaching the ambitious climate targets set for our industry. We look forward to investigating new opportunities in cooperation with DEME”, says Talmo.

Bømlo, January 12, 2022

CEO Gitte Gard Talmo (+ 47 91 52 32 45)
CFO Tore Byberg (+47 475 09 012)

This information is prior to this publication considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Important information
Certain statements included within this announcement contain forward-looking information, including, without limitation, those relating to forecasts, projections and estimates, statements of management’s plans, objectives and strategies for the Company, such as planned expansions, investments or other projects, management, as well as statements preceded by “expected”, “scheduled”, “targeted”, “planned”, “proposed”, “intended” or similar statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, these forward-looking statements are based on a number of assumptions and forecasts that, by their nature, involve risk and uncertainty. Various factors could cause our actual results to differ materially from those projected in a forward-looking statement or affect the extent to which a particular projection is realized.

No assurance can be given that such expectations will prove to have been correct. The Company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

This stock exchange announcement was published by Lars Tufteland Engelsen, Finance Manager at Eidesvik AS, on January 12, 2022 at 08:00 CET.