Half Year 2026 DOF Group ASA Earnings Call

August 19, 2026

[Company Representative] (DOF): From DOF. Today's presentation will include operational and financial highlights and some views on certain market segments in the coming years, before we round off with a Q&A session. You can submit your questions in the webcast Q&A function, and you can do so at any time during the presentation, and we will cover them at the end. All right, with those practicalities out of the way, let's get going. I reckon the first order of business is to pause for a moment and marvel at this beautiful picture of one of the newest additions to the DOF fleet. What you say, Mons?

Speaker #1: From DOF, today's presentation will include operational and financial highlights, as well as some views on certain market segments in the coming years. Before we round off, we'll take a Q&A session.

Speaker #1: You can submit your questions in the webcast Q&A function, and you can do so at any time during the presentation, and then we will cover them at the end.

Speaker #1: All right, with those practicalities out of the way, let's get going. I reckon the first order of business is to pause for a moment and marvel at this beautiful picture of one of the newest additions to the DOF fleet, or what do you say, Mons?

Speaker #2: Yeah, it's a beautiful picture, and yes, it is just going to solve fuel. So we took the livery here, and the sister just input it under June and solved for a bit earlier.

Mons Aase: Yeah, it's a beautiful picture, and yes, it is Skandi Saltfjord. We took delivery of her and the sister, was it end of June? Saltfjord a bit earlier. So this is Saltfjord and of course, she is now on her way to Guyana, so the first term contract with her. It's been a success so far. Of course, the market for these type of boats, very big high-end anchor handlers has been very good so far this year. Our market view is, of course, that it will strengthen going forward. We have a few slides on that. I'm going to talk more about that. At least so far, the earnings from these boats has been very good in Q2, and we expect that to continue. We move on. This is the traditional slide at a glance.

Speaker #2: So this is Salt Fjell, and of course, he is now on his way to Guyana, so the first term contract with Guyana.

Speaker #2: So it's been a success so far, and of course the market for this type of boats—big, very big, high-end anchor handlers—has been very good so far this year. And I know our market view is, of course, that it will strengthen going forward.

Mons Aase: Our market view is, of course, that it will strengthen going forward. We have a few slides on that. I'm going to talk more about that. At least so far, the earnings from these boats has been very good in Q2, and we expect that to continue. We move on. This is the traditional slide at a glance.

Speaker #2: We have a few slides on that. I'm going to talk more about that. So, at least so far, the earnings from these boats have been very good in the second quarter, and we expect that to continue.

Speaker #2: So, then we move on. And this is the traditional slide at a glance. I guess what's worth noting is, of course, that revenue for the last 12 months crept up.

Mons Aase: I guess worth noting here is, of course, that revenue last 12 months creep up, but the EBITDA also rose. We go back to that and a few changes to the fleet. Going to talk a bit more about that later on. We have a capital market day in September. Then, of course, we will talk more about why we are doing what we are doing on the fleet side. It's all about adding high-end vessels where we can add services and margins, then selling less capable assets where we are not able to add services on top. That was at a glance. This is what we do. Of course, most of you have seen this before. We own a fleet. Today we own 61 boats, but at the end of the quarter.

Speaker #2: The EBITDA also grows. We'll go back to that, and to a few changes to the fleet. I'm going to talk a bit more about that later on.

Speaker #2: And we have a capital markets day in September, and then of course we will talk more about why we are doing what we are doing on the fleet side.

Speaker #2: And it's all about, you know, adding high-end vessels, where we can add services and margins, and then selling less capable assets where we are not able to add services on top.

Mons Aase: It's all about adding high-end vessels where we can add services and margins, then selling less capable assets where we are not able to add services on top. That was at a glance. This is what we do. Of course, most of you have seen this before. We own a fleet. Today we own 61 boats, but at the end of the quarter.

Speaker #2: So that was at a glance. And this is what we do. And of course, also, you have seen this before. So, we own a fleet—today, we own 61 boats as of the end of the quarter. And then we have hired in boats from external owners, which we use to execute Q2, our projects and contracts worldwide. And then we also own a very large fleet of ROVs and other subsea equipment.

Mons Aase: We have hired in boats from external owners where we use to execute our projects and contracts worldwide. Then we own a very large fleet of ROVs and all that subsea equipment. I think we are among the top five owners of ROVs. Of course, good earnings on those and we also receive values on the ROVs have increased. What used to be a new building price for last time around $4 million is now $5 million this year, and secondhand value as well. Then we own all that equipment. We add people, so we add services, engineering, ROV services, project management, and so on. We then sell to our clients what I would call integrated offshore services. Then adding a margin on top of the vessel earnings.

Speaker #2: Yeah, so I think we are among the top five owners of ROVs, and of course, good earnings on those. And of course, also, we see values on the ROVs have increased. What used to be a newbuilding price for less than around $4 million is now $5 million plus.

Mons Aase: What used to be a new building price for last time around $4 million is now $5 million this year, and secondhand value as well. Then we own all that equipment. We add people, so we add services, engineering, ROV services, project management, and so on. We then sell to our clients what I would call integrated offshore services. Then adding a margin on top of the vessel earnings.

Speaker #2: Yeah, so, and second-hand value as well. And then on that equipment, we add people, so we add services—engineering, ROV services, project management, and so on.

Speaker #2: And we then sell to our clients, you know, what I would call integrated offshore services. Yeah, and then adding a margin on top of the vessel earnings.

Mons Aase: You see here the development in those through the last few years and the last 12 months. Still creeping up and last 12 months, NOK 822 million. Next one, I think they show the highlights for the quarter and we delivered, of course, Martin Lundberg will talk more about that when he comes on. We delivered an EBITDA of NOK 238 million, which is the highest EBITDA we ever had in a single quarter. It is up 11% compared to Q2. Of course, this is excluding the effects of the Skandi Amazonas total loss and also the $10 million in the sale gain we had on selling a small anchor handler. The reported EBITDA, of course, is NOK 358 million, and I leave it to Martin to explain that.

Speaker #2: And you see here the development in those through the last few years. Yeah, in the last 12 months. Yeah. So, still creeping up, and in the last 12 months, 822.

Speaker #2: Next one is showing the—I think it's showing the highlights for the quarter, and we delivered. Of course, Martin Lundberg will talk more about that when he comes on.

Speaker #2: But we live on EBITDA of 238—the highest EBITDA we have ever had in a single quarter. So, it's up 11% compared to Q2.

Mons Aase: It is up 11% compared to Q2. Of course, this is excluding the effects of the Skandi Amazonas total loss and also the $10 million in the sale gain we had on selling a small anchor handler. The reported EBITDA, of course, is NOK 358 million, and I leave it to Martin to explain that.

Speaker #2: And of course, this is excluding the effects of the Scania Amazonas total loss and also the $10 million sale gain we had on selling a small anchor handler.

Speaker #2: So, the reported EBITDA, of course, is 358, and I'll leave it to Martin to explain that. Utilization on the fleet is 88%, and we are, of course, very happy with the backlog, which now stands at NOK 7.2 billion. That gives us very good visibility going forward, and perhaps the best visibility we've ever had in DOF when you look at the backlog for 2027, 2028, and onwards.

Mons Aase: Utilization on the fleet 88%, and of course very happy with the backlog now stands at NOK 7.2 billion, and of course, that gives us very good visibility going forward. Perhaps the best visibility we ever had ever in DOF Group when you look at the backlog for 2027 and 2028 and onwards. Of course, that is also part of the reason why the board decided to do a small increase on the dividends as we see the visibility and also the market outlook. We are getting more and more convinced that this market will stay strong for long. Of course, that is why we increased the dividend. The graph, of course, shows the EBITDAs and the debt and equity and so on. I leave Martin will talk more about that later on.

Speaker #2: Yeah, so, and of course, that is also part of the reason why the board, you know, decided to do a small increase on the dividends.

Speaker #2: As we see the visibility and also the market outlook, you know, we—I'm getting—we're getting more and more convinced that this market will stay strong for long.

Mons Aase: We are getting more and more convinced that this market will stay strong for long. Of course, that is why we increased the dividend. The graph, of course, shows the EBITDAs and the debt and equity and so on. I leave Martin will talk more about that later on.

Speaker #2: Yeah. So we, so—and, of course, that's why we increased the dividend. The graphs, of course, show the EBITDA, and the debt and equity, and so on. I'll leave that for Martin to talk more about later on.

Mons Aase: A good operational quarter and a very strong outlook based on a very solid order book. This is a few, some of the awards, and of course, it is spread globally. It is starting in Australia. Two jobs on the Skandi Inventor, we talked almost a year, and what I would call very healthy rates and margins. Then we have three years on the sister boat, the Skandi Involver in Guyana. We commenced at late June, early July. She has started that contract. Of course then, North Office back having three out of 4 CSVs with full services for ExxonMobil in Guyana. Very proud of that. We won a project with TotalEnergies in Nigeria that will involve four boats, which is a big mooring project that we believe will deliver good margins for us.

Speaker #2: So a good operational quarter and a very strong outlook based on a very solid order book. So these are a few of the awards, and of course, it's spread globally.

Speaker #2: It's starting in Australia—two jobs on a Scania inventor total almost a year, and at what I would call very healthy rates and margins.

Speaker #2: Yeah. And then we had three years on the sister boat Scandi Involver in Guyana. We commenced in late June, early July, so she has started that contract and, of course, now DOF is back, having three out of four CSVs with full services for Exxon in Guyana.

Mons Aase: We commenced at late June, early July. She has started that contract. Of course then, North Office back having three out of 4 CSVs with full services for ExxonMobil in Guyana. Very proud of that. We won a project with TotalEnergies in Nigeria that will involve four boats, which is a big mooring project that we believe will deliver good margins for us.

Speaker #2: So, very proud of that. We won a project in Total in Nigeria that will involve four boats, which is a bit more in project that we believe will deliver good margins for us.

Mons Aase: Then we extended Skandi Búzios and Skandi Recife for a year or a bit more into early 2028. Of course, interesting on the pipeline list, there is an ongoing tender. We have bid Skandi Búzios, Skandi Recife, and Skandi Olinda on that, and for Skandi Olinda and Skandi Recife, we are the only bidder, and for the Skandi Búzios, we have one competitor, very similar sized boat. Let us see. It will take a bit of time. Of course, hopeful, and it is a four-year contract then starting in early 2028, meaning that if you are awarded that, you have backlog for those boats to 2032. As you remember, the three older units, we still have backlog to 2030. Of course, we see that the backlog starts creeping into the 2030s and beyond. It is also a sign, of course, how the oil companies are viewing the market.

Speaker #2: Then we extended Users and Recife for a year or a bit more in early '28, and of course the interesting thing on the pipelines is there is an ongoing tender. We have bid for Business, Recife, and Olinda on that, and for Olinda and Recife, we are the only bidder, and for Business we have one competitor with a similar sized boat.

Speaker #2: Yeah. So, let's see. It will take a bit of time, but we, of course, are hopeful. And it's a four-year contract, then starting in early '28, meaning that if you are awarded that, you have backlog for those boats to 2032.

Mons Aase: Let us see. It will take a bit of time. Of course, hopeful, and it is a four-year contract then starting in early 2028, meaning that if you are awarded that, you have backlog for those boats to 2032. As you remember, the three older units, we still have backlog to 2030. Of course, we see that the backlog starts creeping into the 2030s and beyond. It is also a sign, of course, how the oil companies are viewing the market.

Speaker #2: Yeah. And as you remember the three other appeals visa you have backlog to 2030. Yeah. So of course we see that you know that the backlog starts creeping you know into the 2030s and beyond.

Speaker #2: Yeah, so, and it's also a sign, of course, of how the oil companies are viewing the market. When they go long and into the 2030 course, it's because they believe the market will be strong also going forward.

Mons Aase: When they go long and into 2030, of course, it is because they believe the market will be strong also going forward. I mentioned the front page, it was the two anchor handlers going to Caribbean, and that is to Guyana. It is very interesting. It is the first time we do large anchor handlers on drilling support in that area. We are seeing all the demand for very, very high-yard boats developing outside Brazil and the North Sea into new areas. Likewise, if you are on the bottom, you see the Skandi Hero. Of course, it is a four-year contract for a high-end anchor handler in Suriname. It is our first entry into Suriname, and very interesting to see that demand and a very big anchor handler with the crane on a four-year contract. Also, of course, including all these services on top. I leave it like that.

Speaker #2: Then I mentioned the front page. It was the two anchor handlers going to the Caribbean—now that is to Guyana—and it's very interesting. Yeah.

Speaker #2: It's the first time we do large anchor handlers on drilling support in that area. Yeah. So we see now the demand for very, very high-yard boats, you know, developing outside Brazil and the North Sea.

Speaker #2: ...into new areas. And likewise, if you’re on the bottom here, you see the Scandinavia. Of course, it’s a four-year contract for a high-yard anchor handler in Suriname.

Mons Aase: Likewise, if you are on the bottom, you see the Skandi Hero. Of course, it is a four-year contract for a high-end anchor handler in Suriname. It is our first entry into Suriname, and very interesting to see that demand and a very big anchor handler with the crane on a four-year contract. Also, of course, including all these services on top. I leave it like that.

Speaker #2: Yeah, so it's the first entry into Suriname, and very interesting to see that they demand a very big anchor handler with a crane on a four-year contract.

Speaker #2: Yeah. And also of course including ROEs and services on top. Yeah. And I think the so I'll leave it I'll leave it like that.

Mons Aase: But of course, it has been good from APAC to Canada to the North Sea and to Caribbean and so on. It has been a global good quarter for us. Of course, we also expect it to continue. There will be more awards, there will be shorter awards, and there will be longer awards. We expect the backlog to continue to build going forward. The next, I guess, summarizes the. So this is the anchor handlers. For those of you remember how it looked back when we bought DOF Denmark or Maersk Supply Service, of course, it has changed a lot. We have sold quite a few low-end boats, and then we have bought a couple of high-end boats. Of course, the backlog has also changed dramatically. Now I think we have, is it 24, 25 boats on this slide?

Speaker #2: But of course, it's been good, you know, from APEC to Canada to the North Sea and to the Caribbean and so on. Yeah. So it's been a good global quota for us.

Speaker #2: And of course, we also expect it to continue—there will be more awards. There will be shorter awards, and there will be longer awards.

Speaker #2: And we expect the backlog to continue to build going forward. And the next, I guess, to summarize, this is the anchor or handlers.

Mons Aase: The next, I guess, summarizes the. So this is the anchor handlers. For those of you remember how it looked back when we bought DOF Denmark or Maersk Supply Service, of course, it has changed a lot. We have sold quite a few low-end boats, and then we have bought a couple of high-end boats. Of course, the backlog has also changed dramatically. Now I think we have, is it 24, 25 boats on this slide?

Speaker #2: Yeah. And for those who, you know, remember how it looked back when we bought DOF Denmark or Masterprice Service, of course it's changed a lot.

Speaker #2: Yeah. We have sold quite a few low-end boats, and we have bought a couple of high-yard boats. And, of course, the backlog has also changed dramatically.

Speaker #2: Yeah. So now I think we have—is it 24th, 25th boats on this slide? And then you see for the second half of this year, we have three, three and a half boats exposed to the spot market. And then for next year, we have full backlog for all the boats, around six boats—three of them with large cranes and three without.

Mons Aase: Then you see for H2 this year, we have a 3.5 boat exposed to the spot market. Then for next year, we have a full backlog for all the boats around six boats and three of them with large cranes and three without. We have never had such a high backlog on anchor handlers. We also see, of course, rate levels. I think the last years, you could say the rates are up around 15% compared to the existing rates we have. So it is creeping in the right direction. We feel we have a very balanced portion now to the market exposure on those boats. It might be, of course, as we write here, that we will need to charter in a boat in order to support us on a few projects.

Speaker #2: Yeah. So we have never had such a high backlog on anchor handlers, and we also see, of course, rate levels—I think the last deals, you could say, the rates are up around 15% compared to the existing rates we have.

Speaker #2: Yeah, so it's creeping in the right direction. And so we feel we have a very balanced pose now to the market exposure on those boats.

Mons Aase: So it is creeping in the right direction. We feel we have a very balanced portion now to the market exposure on those boats. It might be, of course, as we write here, that we will need to charter in a boat in order to support us on a few projects.

Speaker #2: Yeah. And it might be, of course, as we write here, that we will need to shut our inner boat now and then to support us on a few projects.

Speaker #2: The next page is showing, also, a reason why we are a bit optimistic on these boats is that this is then the, you know, what we call, you know, the floater market. And then you see there were six being done in '26, and then we see we have 13 and 13 for '27 and '28.

Mons Aase: The next page is showing also a reason why we are a bit optimistic on these boats is that this is then the, what we call the floater market. Then you see in this, there was six being done in 2026. Then we see we have 30 and 30 for 2027 and 2028. Especially from H2 2027, we see a very busy market on mooring projects globally. That is, of course, part of the reason why we have these three anchor handlers with the cranes to capture that market. All in all, to summarize anchor handlers, very high healthy pipeline of mooring projects. Demand now for higher anchor handlers, also the, let us say, the traditional areas and a very strong balanced North Sea spot market. We are, as you understand, optimistic on that segment going forward.

Speaker #2: Yeah, and especially from the second half of '27, we see a very busy market on mooring boats, or OSVs, globally. And of course, that is part of the reason why we have these three anchor handlers with big cranes, to capture that market.

Speaker #2: So, all in all, to summarize: anchor handlers have a very healthy pipeline of mooring projects. There is demand now for higher anchor handlers, also in the, let's say, traditional areas, and a very strong, balanced North Sea spot market.

Mons Aase: All in all, to summarize anchor handlers, very high healthy pipeline of mooring projects. Demand now for higher anchor handlers, also the, let us say, the traditional areas and a very strong balanced North Sea spot market. We are, as you understand, optimistic on that segment going forward.

Speaker #2: Yeah. So we are, as you understand, optimistic on that segment going forward. So this is the backlog then—around $7.2 billion if you include what we have won after the balance date.

Mons Aase: This is the backlog on around NOK 7.2 billion, if you include what we have won after balance date. For the month of this year, of course, we are raising our revenue guidance for this year. With the new guidance, we have a backlog around 92%. Next year, we are creeping up towards 70%. For 2028, we are around 55%. Of course, it is interesting to see that if you look at T1 backlog, we are $300 million higher now than we were a year ago. It is the strongest ever. As I say, we expect that to continue, and I would not be surprised if we are 80% plus when we start 2027. It is quite good. As I said, we see the pipeline of expected awards and bids and that it is very promising.

Speaker #2: And for the month of this year, we have of course— we are raising our revenue guidance for this year. So, with the new guidance, we have a backlog around 92%.

Speaker #2: And next year we are creeping up towards 70%, and then for '28 we are, you know, around 55%. And of course, it's interesting to see that if you look at T1 backlog, we are $300 million higher now than we were a year ago.

Mons Aase: Of course, it is interesting to see that if you look at T1 backlog, we are $300 million higher now than we were a year ago. It is the strongest ever. As I say, we expect that to continue, and I would not be surprised if we are 80% plus when we start 2027. It is quite good. As I said, we see the pipeline of expected awards and bids and that it is very promising.

Speaker #2: Yeah, so it's the strongest ever, and as I say, we continue. I wouldn't be surprised if we are 80% plus when we start '27.

Speaker #2: Yeah, so it's quite good, and as I said, we see the pipeline of expected awards and bids, and that, you know, it's very, very promising.

Speaker #2: So, all in all, very optimistic on continuing to build backlog for the group. So then, yeah, I talked a bit about what we are doing with the fleet.

Mons Aase: All in all, very optimistic on continuing to build backlog for the group. I talked a bit about what we are doing with the fleet. We are selling PSVs. Of course, we continue management of them. We have a small ownership and they will continue working on their jobs, and we will manage them. But we are netting out $50 million in cash from it. Of course, on a PSV, you make the day rate and that is what you make on an anchor handler or that go on a project, an anchor handler ROV or a CSV, of course, you make margins on top. Of course, that is why we are exiting this segment gradually. It is not because we do not believe that PSV will be a decent place to be going forward.

Speaker #2: So we are selling four PSVs. Of course, we will continue management of them. We have a small ownership, and they will continue working on their jobs, and then we will manage them.

Speaker #2: But we have, and then we are netting out $50 million in cash from it. And of course, on a PSV, you make the day rate, and that's what you make on an anchor handler or that go on a project—an anchor handler with ROE or a CSV.

Mons Aase: Of course, on a PSV, you make the day rate and that is what you make on an anchor handler or that go on a project, an anchor handler ROV or a CSV, of course, you make margins on top. Of course, that is why we are exiting this segment gradually. It is not because we do not believe that PSV will be a decent place to be going forward.

Speaker #2: Of course, you make margins on top. Yeah. And of course, that's why we are exiting this segment gradually. It's not because we don't believe that PSV will be a decent place to be going forward.

Mons Aase: It is simply because it is not part of our core strategy anymore to do that type of operations. On the next slide, of course, we have invested in two new builds to be delivered late 2024, early 2027, early 2028. Of course, that is part of the strategy. We are selling, let us say, old assets and non-core assets. Then we are focusing that in on new core assets. So we bought the two anchor handlers and we are buying these two. Of course, on the present earnings we have on similar vessel fleet, we believe this will be, what you call it, Lundberg, in English?

Speaker #2: It's simply because it's not part of our core strategy anymore to do that type of operations. Yeah. And then we have, on the next slide, we of course have invested in two new builds to deliver in late '24, early '27, and early '28, and of course that is part of the strategy.

Speaker #2: We are selling, let's say, all assets and non-core assets, and then we are focusing in on newer core assets. Yeah. So, we bought the two anchor handlers and we are buying these two, and of course, on the present earnings we have on similar boats in the fleet, we believe this will be, you know, what you call it—Lundberg in English.

Martin Lundberg: Accretive.

Speaker #1: Equity.

Speaker #2: Equity. Yeah, it's a very difficult word. Yeah. So, for the numbers in DOF. And then the next one is showing what we talked about earlier—that we will high-grade the fleet, but we will be cash neutral or cash positive and fund it from vessel sales.

Mons Aase: Accretive, yeah. It is a very difficult word for the numbers in DOF. Our next one is showing what we talked about earlier is that we will high-grade the fleet, but we will be cash neutral or cash positive and funded from vessel sales. I guess this one is showing on the graph here, is showing that with the PSV sale and so on. If we have a 65% debt on the two new boats, we will be slightly cash positive on what we have done so far on sales and purchases on boats. That is how we will do it going forward. So we will be minimum cash neutral when we renew and high-grade the fleet. That is it, really. Then, Mr. Lundberg, do you take the word?

Speaker #2: Yeah. And I guess this one is showing, then, the graph here is showing that with the PSV sale and so on and so on, you know, if we have a 65% debt on the two new boats, we will be slightly cash positive on what we have done so far on sales and purchases on boats.

Mons Aase: If we have a 65% debt on the two new boats, we will be slightly cash positive on what we have done so far on sales and purchases on boats. That is how we will do it going forward. So we will be minimum cash neutral when we renew and high-grade the fleet. That is it, really. Then, Mr. Lundberg, do you take the word?

Speaker #2: Yes, and that is how we will do it going forward. So we will be at minimum cash neutral when we renew and high-grade the fleet.

Speaker #2: Yeah, so that's it, really. So then, Mr. Lundberg, you have the word.

Martin Lundberg: Yep. Thank you, Hans. I will go a bit more into details on these numbers. I guess it is needless to read them all, but across all the segments, it is another strong quarter. On this slide, you see that it is a good development across the group where the ship owning section or the segment is the 2, has the biggest improvement from last year with 17%. One of the big drivers for that is for sure the anchor handler spot project market. That has been a good contributor. 11% up quarter to the same quarter last year, so $24 million. In this graph, we are showing the underlying, call it operational EBITDA exclusive of any sales gain and Amazonas booking effect that I will come back to.

Speaker #1: Yep, thank you once again. And yeah, I'll go a bit more into detail on these numbers. I guess it's needless to read them all, but across all the segments, it's another strong quarter. On this slide, you see that, yeah, it's a good development across the group, where the ship-owning section or segment is the one to have the biggest improvement from last year, with 17%. And one of the big drivers for that is for sure the anchor handler spot project market.

Martin Lundberg: One of the big drivers for that is for sure the anchor handler spot project market. That has been a good contributor. 11% up quarter to the same quarter last year, so $24 million. In this graph, we are showing the underlying, call it operational EBITDA exclusive of any sales gain and Amazonas booking effect that I will come back to.

Speaker #1: So that's been a good contributor—11% up here over the quarter, compared to the same quarter last year. So, $24 million, and of course, in this graph, we are showing the underlying, call it, operational EBITDA exclusive of any sales gain and the Amazonas booking effect, which I will come back to.

Speaker #1: But of course, it's important to say that those are non-recurring, but they are still earnings. Yeah. And the sales gain of $10 million relates to the sale of Scandi Lazer delivered in the quarter, while the Scandi Connector and the four PSVs delivered after Q2 will not be booked until they are in that quarter.

Martin Lundberg: But of course, it is important to say that those are. They are non-recurring, but they are still earnings. The sales gain of $10 million relate to the sale of Skandi Laser delivered in the quarter, while the Skandi Connector and the 4 PSVs delivered after Q2 will not be booked until they are in that quarter. There is no final loss in this quarter presentation. Still and comfortably within our targeted leverage range. We have communicated 1.5 to 2 is where we want to stay. That is also one of the important principles of the dividend levels. We see, as Mons said, very stable, strong markets for the longer terms. This is a comfortable place to be.

Speaker #1: So there is no sign of those in this quarter's presentation. Still comfortably within our targeted leverage range. We have communicated that 1.5 to 2 is where we want to stay.

Martin Lundberg: Still and comfortably within our targeted leverage range. We have communicated 1.5 to 2 is where we want to stay. That is also one of the important principles of the dividend levels. We see, as Mons said, very stable, strong markets for the longer terms. This is a comfortable place to be.

Speaker #1: That is also one of the important principles of the dividend levels. This is, yeah, we see as mentioned, very stable, strong markets for the longer term.

Speaker #1: So this is a comfortable place to be. We said that we could sit in the upper end of that range when we see good visibility and good tendering activity, and that's where we are at the moment.

Martin Lundberg: We said that we could sit in the upper end of that range when we see good visibility and good tendering activity, and that is where we are at the moment. On debt development, it is slightly down on normal amortization, and of course, the Amazonas impact is a part of that. We have also done a few new loans related to particularly the Skandi Saltfjord being delivered to us in the quarter. New debt has no corresponding EBITDA in the 1.8. That will improve when you have a full year of operations. On this one, it is a few highlights. Of course, a positive change in working capital on a high activity quarter is not always we managed to do that. So we are happy about the operational cash flow in this quarter.

Speaker #1: On debt development, it is slightly down on normal amortization, and of course the Amazonas impact is a part of that. We've also done a few new loans related to, particularly, the Scandi Saltfjord being delivered to us in the quarter.

Speaker #1: And of course, new debt has no corresponding EBITDA in the 1.8. So that will improve when you have a full year of operations.

Martin Lundberg: New debt has no corresponding EBITDA in the 1.8. That will improve when you have a full year of operations. On this one, it is a few highlights. Of course, a positive change in working capital on a high activity quarter is not always we managed to do that. So we are happy about the operational cash flow in this quarter.

Speaker #1: On this one, it is a few highlights. Of course, positive change in working capital on a high activity quarter is not always expected. We managed to do that.

Speaker #1: So that is a we're happy about the operational cash flow in this quarter. A relatively high capex number when you look at the purchase of Saltfjord and the general capex being maintenance purchase of ROV systems and also an installment, a new build installment on the Norseman being delivered for the long-term contract next year.

Martin Lundberg: A relatively high CapEx number when you look at the purchase of Saltfjord and the general CapEx being maintenance purchase of ROV systems and also a new build installment on the Norseman being delivered for the long-term contract next year. This CapEx, as you see from the financing activity, is also partly financed, so it is not all cash out. Same with, of course, the biggest portion on the financing activities is, of course, the one we are happy with, and that is the dividend payment of close to $90 million. Positive that cash remains comfortable, and even a little bit up from last quarter. This is the, call it the one complicated booking event during the quarter. So I will spend a little bit of time going through how you get to the underlying numbers. Of course, the booking of insurance is different from booking of a sale.

Speaker #1: These capex, as you see from the financing activities, are also partly financed. So it's not all cash out. And the same with, of course, the biggest portion of the financing activities is, of course, the one we're happy with, and that is the dividend payment of close to $90 million.

Martin Lundberg: Same with, of course, the biggest portion on the financing activities is, of course, the one we are happy with, and that is the dividend payment of close to $90 million. Positive that cash remains comfortable, and even a little bit up from last quarter. This is the, call it the one complicated booking event during the quarter. So I will spend a little bit of time going through how you get to the underlying numbers. Of course, the booking of insurance is different from booking of a sale.

Speaker #1: Positive that, yeah, cash remains comfortable, and even a little bit up from last quarter. Yeah, this is, call it, the one complicated booking event during the quarter.

Speaker #1: So I'll spend a little bit of time going through how you get to the underlying numbers. And, of course, the booking of insurance is different from booking a sale.

Speaker #1: So, the vessel is written down to zero and you get revenue on the entire value of the insurance payout or the settlement. So, the net settlement after a local tax element is 111, impacting the revenue.

Martin Lundberg: The vessel is written down to zero, and you get the revenue on the entire value of the insurance payout or the settlement. The net settlement after a local tax element is NOK 111 million impacting the revenue. The EBITDA is impacted by NOK 110 million. There is a $1 million cost that was amortized over the contract period that we had to expense in this event occur. It is a debt repayment on the vessel of NOK 95 million, and we have a $19 million receivable on the balance for the remainder of the insurance claim. The book value of the vessel was $42 million, so if this was booked in a similar manner as a sale, it would result in a gain of $68 million, but not the NOK 110 million as we show in this overview.

Speaker #1: The EBITDA is impacted by 110. There is a $1 million cost that was amortized over the contract period, but we had to expense it when this event occurred.

Speaker #1: And it is a debt repayment on the vessel of $95 million, and we have a $19 million receivable on the balance for the remainder of the insurance claim.

Martin Lundberg: It is a debt repayment on the vessel of NOK 95 million, and we have a $19 million receivable on the balance for the remainder of the insurance claim. The book value of the vessel was $42 million, so if this was booked in a similar manner as a sale, it would result in a gain of $68 million, but not the NOK 110 million as we show in this overview.

Speaker #1: The book value of the vessel was $42 million. So, if this was booked in a similar manner as a sale, it would result in a gain of $68 million and not the $110 million as we show in this overview.

Martin Lundberg: This is a Norskan or was a Norskan-owned vessel, being one of the higher-levered silos or segments of the group. Of course, when this NOK 95 million debt repayment has been done, it is a NOK 309 million remainder debt on the company, net NOK 282 million, and a leverage somewhere in the threes on the last 12 months earnings, excluding the Skandi Amazonas effect. With the new contracts commencing next year, we see that high leverage on Norskan is passed also. This is more just an overview of the dividend to be paid on 4 September, and it is showing how the dividend payments have been developing over the last one and a half.

Speaker #1: Of course, this is a Nordskan, or was a Nordskan-owned vessel, being one of the higher-levered silos or segments of the group.

Speaker #1: And of course, when this $95 million debt repayment has been done, there is a $309 million remainder debt on the company. Net $282 million, and a leverage on the, yeah, in the somewhere in the threes on the last 12 months' earnings.

Speaker #1: Excluding the Amazonas effect, and with the new contracts commencing next year, we see that—let's call it—high leverage on Nordskan is past us.

Martin Lundberg: With the new contracts commencing next year, we see that high leverage on Norskan is passed also. This is more just an overview of the dividend to be paid on 4 September, and it is showing how the dividend payments have been developing over the last one and a half.

Speaker #1: Yeah, this is more just an overview of the dividend to be paid on the 4th of September, and it is showing how the dividend payments have been developing over the last one and a half years.

Martin Lundberg: Yes, the total amount of NOK 505 million is a high number, and it is something that we think we have a sustainable and strong dividend level. We are working to continue to have a strong and good level of dividends and something that we are able to maintain over a long time. I will leave it back to you, Mats.

Speaker #1: And the total amount of $505 million is, yeah, it's a high number, and it's not something that we think we have as a sustainable and strong dividend level.

Speaker #1: And we're working to continue to have a strong and good level of dividends, and something that we're able to maintain over a long time. Yes.

Speaker #1: I'll hand it back to you, Mats.

Speaker #2: Thank you. So this is updated guidance, and as we mentioned earlier, we have lifted revenue guidance a bit. Now our midpoint is $2,250 million compared to $2,200 million.

Mons Aase: Thank you. This is updated guidance. As we mentioned earlier, we lift the revenue guidance a bit. Now our midpoint is NOK 2,250 million compared to NOK 2,000 million. We lifted it NOK 50 million. EBITDA excluding gain. One is we keep the low end of the range at NOK 840 million, and we lower the high end then. Of course, the reason for lowering it is that the four PSVs we talked about were delivered to new owners in July. The Skandi Amazonas going in May, and then we are moving forward class renewal of the Skandi Forza from 2027 to 2026. The effects on that is, all those three events is NOK 25 million. For the minor year, and of course then, in reality, apple to apple, we are guiding up and not down.

Speaker #2: So we lifted the $50 million here. And BDI excluding gain and so on, we have—we keep the low under the rails at 840, and we lower the high. And then, of course, the reason for lowering it is that the four PSVs we talked about were delivered to new owners in July.

Mons Aase: Of course, the reason for lowering it is that the four PSVs we talked about were delivered to new owners in July. The Skandi Amazonas going in May, and then we are moving forward class renewal of the Skandi Forza from 2027 to 2026. The effects on that is, all those three events is NOK 25 million. For the minor year, and of course then, in reality, apple to apple, we are guiding up and not down.

Speaker #2: You know, the Scandi Amazonas is growing in May. And then we are moving forward with the class renewal of the Scandi Forza from 2027 to 2026.

Speaker #2: And the effects on that is or those three events is 25 million for the remainder of the year. And of course then so of course in reality Apple to Apple we are guarding up and not done.

Speaker #2: So we are actually guarding up 15 million dollars when we adjust for that. Yeah. So it's not that we have we believe we the market is also that the prospects of us is just that we have these three events that we had to adjust for.

Mons Aase: So we are actually guiding up NOK 15 million when we adjust for that. It is not that we believe the market is worse or that the prospects are worse, it is just that we have these three events that we had to adjust for. Going down similar on net interest and on tax and on CapEx, of course, there are a few changes. The maintenance CapEx is adjusted up a bit, and of course, that is to reflect that the Skandi Forza is coming from 2027 into 2026. So it is just a timing issue and nothing more. Then, of course, on the new builds with the two CSVs we are buying, we are paying a deposit on those this year and will pay 85% on delivery.

Speaker #2: And then, going down, similar on in that, interest and on tax, and then on capex, of course, there are a few changes. The maintenance capex is adjusted up a bit, and of course, that is to reflect that the Scandi Forza is coming from '27 into '26.

Speaker #2: Yeah, so it's just a timing issue, nothing more. And then, of course, on the new builds with the two CSVs we are buying, we are paying in a deposit on those, you know, this year.

Speaker #2: And we'll pay 85% on delivery. So, all in all, not many major changes. And I guess most of them are a natural consequence, or are not any shocking news to anybody, that when we, you know, on the changes.

Mons Aase: All in all, not many major changes and I guess most of them natural consequence or are not any shocking news to anybody on the changes. The last page is just to summarize the new guidance NOK 840 to 860. Very strong backlog, 92% for 2026, already 68% for 2027. I think that is probably the highest we ever had so early in a year follow. We of course expect that to continue to build on. As we said, strong pipeline, high tender activity, a lot of negotiations ongoing as we speak and expect new awards going forward as well, of course. Then a strong accounting market, which we talked a lot about then, and also then a strong project market for the anchors. Then we have the pictures here. The number one on the left-hand side here is the Saltfjord which we talked about.

Speaker #2: So, the last page is just to summarize the new guidance: 840 to 860. Very strong backlog—92% for '26, already 68% for '27.

Speaker #2: And I think that is probably the highest we have ever had so early in a year, you know. So we, of course, expect that to continue to build, and as we said, strong pipeline, high tender activity, a lot of negotiations ongoing as we speak, and expect new awards going forward as well, of course.

Mons Aase: As we said, strong pipeline, high tender activity, a lot of negotiations ongoing as we speak and expect new awards going forward as well, of course. Then a strong accounting market, which we talked a lot about then, and also then a strong project market for the anchors. Then we have the pictures here. The number one on the left-hand side here is the Saltfjord which we talked about.

Speaker #2: And then, stronger and counting market, which we talked a lot about, and also then strong project market for the end. And then we have the pictures here. The number one on the left-hand side here is the Saltfjord, which we talked about.

Mons Aase: So a new addition and expect a lot of good earnings out of her going forward. The second one is a picture of one of our oil classes where we have secured backlog for two out of many quarters. Of course, we expect to build backlog for the two remaining going forward as well. So it looks good and I am very proud of the Skandi Hera, our first long-term contract in Suriname, and I guess one of the first contracts for any industry player in that country. Of course, we expect, like we have seen in Guyana, that there will be a lot of more opportunities going forward in Suriname for us and other players.

Speaker #2: So a new addition, and we expect a lot of good earnings also going forward. The second one is a picture of one of our E-class vessels, where we have secured backlog for two of them in the quarter.

Speaker #2: And, of course, we expect to build backlog for the two remaining going forward as well. So it looks good. And then, very proud of the Scandi Hera, our first long-term contract in Suriname, and I guess one of the first contracts for any industry player in that country.

Speaker #2: And of course, we expect—luckily, we have seen in Guyana—that there will be a lot more opportunities going forward in Suriname for us and other players.

Speaker #2: And the last one, of course, is the pipeline—one pipeline where we extend the two. And where we have this tender with Petrobras live, and our hope, of course, is to win three contracts, which will then give these both backlog into 2032.

Mons Aase: The last one, of course, is the F1 pipe layer where we expanded to, and where we have this tender with Petrobras live and our hope, of course, is to win three contracts which will then give these both backlog into the 2020 to 2030. So leave it like that, and then we are open for questions.

Speaker #2: So, we'll leave it like that. And now, we are open for questions. Yeah.

[Company Representative] (DOF): We are indeed. We have received a lot of questions already. Thank you for that. I think we have enough to cover the remaining 30 minutes, but please do keep them coming if you have them in using the Q&A function in the webcast player. We start with one on dockings. You include some effects from timing of dockings. The question is what drives the decision to move a docking in general and then specifically for Skandi Forza, if there are any particular considerations there?

Speaker #1: We are indeed. We have received a lot of questions already, so thank you for that. I think we have enough to cover the remaining 30 minutes.

Speaker #1: But please do keep them coming if you have any, using the Q&A function in the webcast player. We start with one on docking. You include some effects from timing of dockings.

Speaker #1: And the question is, what drives the decision to move docking in general? And then, specifically for Forza, if there are any particular considerations there.

Speaker #2: Of course, there can be many reasons for a docking. It can be, you know, a schedule issue. You always discuss with the client when it's the most convenient time to do a docking.

Mons Aase: Of course, it can be many reasons for a docking. It can be a schedule issue. You always discuss with the client when is the most convenient time to do a docking. So that could be one reason. Another reason can be that you see that you have available slots and sometimes it is difficult depending on where in the world you have a boat. The third reason can be that you have technical problems and do not want to stop the boat once and then do the docking later on. So it could be many reasons for that. But we are talking here about moving the docking forward three, four months. So it is not dramatic. Of course, the window for a docking with the class is normally three months.

Speaker #2: So that could be one reason. Another reason can be that you see that you have available slots, and sometimes it’s difficult depending on where in the world you have a boat. And the third reason can be that you have technical problems and don’t want to stop the boat once and then do the docking later on.

Mons Aase: The third reason can be that you have technical problems and do not want to stop the boat once and then do the docking later on. So it could be many reasons for that. But we are talking here about moving the docking forward three, four months. So it is not dramatic. Of course, the window for a docking with the class is normally three months.

Speaker #2: So, it could be many reasons for that. Yeah. But of course, we are talking here about moving the docking forward three, four months.

Speaker #2: Yeah, so it's not dramatic. Yeah, and of course, the window for a docking with a class is normally three months. Yeah.

Speaker #1: Thank you. Do you have an updated valuation of the vessels as of June 2026? And if yes, how does this compare to the book value?

[Company Representative] (DOF): Thank you. Do you have an updated valuation of the vessels as of June 2026? If yes, how does this compare to the book value and to the end of 2025, Martin?

Speaker #1: And to the end of 2025 market?

Speaker #2: Yeah. There is a

Martin Lundberg: Well, there is a valuation included in the deck. Is it NOK 4.2 billion? That is the broker estimates on the fleet. The book value of the fleet is included in the report. I will have to cheat slightly and find it here. But,

Speaker #3: Valuation included in the deck— is it $4.2 billion? That is the broker estimates on the fleet. And yeah, the book value of the fleet is included in the report.

Speaker #3: I will have to cheat slightly and find it here. But.

Speaker #2: I can just fill in on the broker values. In the meantime, as of the end of Q4, that was $4.1 billion, so slightly below the current broker value.

[Company Representative] (DOF): I can just fill in on the broker values in the meantime. As of the end of Q4, that was $4.1 billion, so slightly below the current broker value. Of course, that includes a slightly different fleet with the Saltfjord coming in and Skandi Amazonas and Skandi Laser going out for those values.

Speaker #2: Of course, that includes a slightly different fleet, with the Saltfjord coming in and the Amazonas and Lhasa going out for those values.

Speaker #1: Yeah. I can also fill in, of course, the broker values are based on shorter pre-books. Yeah. So it's not a direct measurement because you have contracts on most of the boats.

Mons Aase: Yeah, I can also fill in. Of course, the broker values are based on charter pre-books. So it is not a direct measurement because you have contracts on most of the books. So you have to adjust for that value, the stated values. Yeah.

Speaker #1: Yeah, so you have to adjust for that value with the values. Yeah.

Speaker #3: Yeah. And fixed assets in the quarter, as tangible assets, are 3.160, so a good billion higher than broker estimates and the current book value of those assets.

Martin Lundberg: Yeah. Fixed asset in the quarter is tangible asset is NOK 3.160 billion. So a good billion higher broker estimates than the current book value of those assets. Of course, the tangible assets also include the ROVs. But the broker values those not. So the real difference is likely higher.

Speaker #3: Of course, the tangible assets also include ROVs. But the broker values do not, so the real difference is slightly higher than that.

Speaker #1: Thank you. How do you translate the increase in float groups that you describe into demand for the anchor handlers? Is it possible to quantify with a number or range?

[Company Representative] (DOF): Thank you. How do you translate the increase in floaters that you describe into demand for the anchor handlers? Is it possible to quantify with a number or range? I guess the latter is difficult, but perhaps, Mons, you can talk about the general scope for such a floater and vessels typically utilized, vessel days, et cetera.

Speaker #1: And I guess the latter is difficult, but perhaps once you can, talk about the sort of general scope for such a floater, and vessels typically utilized, vessel days, etc.

Speaker #2: Yeah. Of course, it's—you know, we have a pretty lay, and then you have a hook-up place for when you do a floater. Yeah.

Mons Aase: Yeah, of course, we have a pre-lay and then you have a hook-up phase for when you do a floater. For a pre-lay, you often use one big anchor handler with crane. That is of course why we have a few of those. Then in a hook-up phase, you normally use the same boat, and then you need three, four boats in addition for handling control. Then of course, I think a typical duration for a project for each of these phases, let us say that is a month. Then of course, most of these projects are West Africa or in more long way from where the anchor handlers work spot. Of course, there is normally then almost one month each way sailing on top.

Speaker #2: And for a pre-lay, you often use one big anchor with a crane. So that's, of course, why we have a few of those.

Speaker #2: And then, in a hookup phase, you normally use the same boat, and then you need three or four boats in addition for handling and control. Yeah.

Mons Aase: Then of course, I think a typical duration for a project for each of these phases, let us say that is a month. Then of course, most of these projects are West Africa or in more long way from where the anchor handlers work spot. Of course, there is normally then almost one month each way sailing on top. That is why it is typical for a hook-up, you can have four or five boats out for, let us say for 90 days.

Speaker #2: And then of course, so I think, you know, a typical duration for a project—each of these phases, let's say that's a month, then.

Speaker #2: But then, of course, you know, most of these projects are, you know, in West Africa, or, you know, are more, you know, a long way from where the anchor handlers work spot.

Speaker #2: So of course, there is normally then almost one month each way sailing on top. Yeah. So that's why, if you go for a hookup, then you can have four, five boats out for, let's say, 90 days.

Mons Aase: That is why it is typical for a hook-up, you can have four or five boats out for, let us say for 90 days.

[Company Representative] (DOF): Perfect, thank you. A few more questions on this project anchor handler topic. The first one is how many of your anchor handlers currently have cranes, and will you install cranes on any new ones?

Speaker #1: Perfect. Thank you. A few more questions on this project anchor handler topic. The first one is: How many of your anchor handlers currently have cranes, and will you install cranes on any new ones?

Mons Aase: Yeah, today we have, is it three? We have with either 150 or 250 ton cranes. We will install one not on Saltfjord, but on Sunnfjord in March, April next year. Then we will have four. Then of course, the Skandi Hera is going to renewal. She will of course, be out of the market. Then we will have the same exposure with three anchor handlers that way.

Speaker #2: Yeah. Today we have, is it three? We have either 150- or 250-ton cranes. And we will install one not on Saltfjord, but on Sunnefjord, you know, in March or April next year.

Speaker #2: So then we will have four. But then, of course, this one here is going, which is going to Suriname. So she will, of course, be out to the market.

Speaker #2: So, then we will have the same exposure with three anchor handlers this way.

[Company Representative] (DOF): I guess it is one more, Mons. You are forgetting Skandi Sotra.

Speaker #1: I guess it's one more a month. You're forgetting further.

Mons Aase: I am forgetting it, Svein Tore. I forgot it. So then you have to remind me. I am getting old. I am getting old. I just seem to have you.

Speaker #2: I'm forgetting a certain... Yeah, forgot you. So then, you have to add one. Yeah, I'm getting out. I'm getting all to have you, and then related to this.

[Company Representative] (DOF): No. Related to this, do you have enough anchor handling capacity to meet the booming demand that you illustrate for 2027? Do you think forcing third-party vessels could become an issue?

Speaker #1: Do you have enough anchor handling capacity to meet the booming demand that you are illustrating for 2027? And do you think sourcing third-party vessels could become an issue?

Speaker #2: Of course, so I think we have the core fleet we need. We have the Naviblask that we need, and of course we have quite a few of the projects we have done in the past.

Mons Aase: Of course. I think we have the core fleet we need. We have the 9 plus that we need and, of course, on quite a few of the projects we have done in the past, we have used third-party boats as well. It is not something we look at the problem to source. Of course we are doing this project now, Cu Lin project, we are starting now next week, and we, of course, use 3 boats from our own fleet and 1 chartered-in boat. It is pretty normal that we do not have the whole fleet ourselves.

Speaker #2: We have used third-party boats as well. Yeah. So it's not something we look at as a problem to source. Yeah. So what we are doing, this project now—the Kulin project—we are starting now, next weekend.

Speaker #2: And then, we of course use three boats from our own fleet and one chartered-in boat, so it's pretty normal that we don't have the whole fleet ourselves.

Speaker #1: Thank you. Moving then over to Brazil. First, there's going to be Amazonas. Will Peter speak to replacing this vessel and, if so, how will they do that?

[Company Representative] (DOF): Thank you. Moving then over to Brazil and first the Skandi Amazonas. Will Petrobras seek to replace this vessel, and if so, how will they do that?

Mons Aase: Well, I cannot answer what Petrobras will do or not do. Will we replace it? The answer to that is no.

Speaker #2: Well, I can't answer what Peter will do or not do. You know, will we replace it? And the answer to that is no.

Speaker #1: Thank you. In Nuuska, what is the reason for the high EBITDA margin and are these sustainable?

[Company Representative] (DOF): Thank you. In Norskan, what is the reason for the high EBITDA margin, and are these sustainable?

Speaker #3: Yeah, I think that is probably looking at an unadjusted number for the Amazonas event. So, the Amazonas recognition of $110 million in EBITDA is the reason for that.

Martin Lundberg: Yeah, I think that is probably looking at an adjusted number for the Amazonas event. The Amazonas recognition of $110 million in EBITDA is the reason for that. Then, of course, that is not a recurring event, and it is not something that you will see in the numbers going forward. The underlying EBITDA margin in Norskan in this quarter is pretty similar to what it has been historically, and of course, it is a high asset segment with eight vessels operating on long-term contract, but it also has a management element to it that gives EBITDA contribution, but with higher volumes on that, it slightly dilutes the margins.

Speaker #3: And of course, that is not a recurring event, and it's not something that you will see in the numbers going forward. So the underlying EBITDA margin in Nuuska this quarter is pretty similar to what it has been historically.

Speaker #3: And it's, of course, a high-asset segment with eight vessels operating on long-term contracts. But it also has a management element to it that gives EBITDA contribution.

Speaker #3: But with higher volumes of that, it slightly dilutes the margins.

Speaker #2: But of course, we do expect, of course, the numbers in Nuuska, you know, adjusted for Amazonas, to improve next year, as most remember. Of course, is it four or five of the Nuuska anchor handlers that start on new contracts early next year?

Mons Aase: But, of course, we do expect, of course, the numbers in Norskan adjusted by Amazonas to improve next year as you also remember, of course, is it four or five of Norskan again that has start on new contract early next year. So going forward, of course, we expect better EBITDA numbers from Norskan when you come into Q2 2017.

Speaker #2: So going forward, of course, we expect a better EBITDA number from Nuuska when you come into, let's say, quarter two in 2027.

Speaker #1: Yeah. I was actually there on the next question once you were ahead of me, with the trajectory of the Nuuska float count that has been addressed to them.

[Company Representative] (DOF): Yeah, that was actually the next question. You are ahead of me with the trajectory of the Norskan. We will count that as addressed to them. Then on the shipowning segment, are there any specific and isolated events impacting this quarter, or was it mainly reflecting good contracts and a good spot market?

Speaker #1: Then, on the ship-owning segment, are there any specific and isolated events impacting this quarter, or was it mainly reflecting good contracts and good spot market?

Speaker #2: Yeah, I guess no. Especially once it is reflecting contracts and a strong spot market in the quarter.

Mons Aase: I guess no special events. It is reflecting contracts and a strong spot market in the quarter.

Speaker #1: Yeah, we've seen some very strong vessel transactions, especially on the subsea side, reported over the last 12 months. Do you see any opportunities to dispose of older DOF vessels, especially in the subsea segment, at these strong levels?

[Company Representative] (DOF): Yeah. We have seen some very strong vessel transactions, especially on the subsea side, reported over the last 12 months. Do you see any opportunities to dispose of older DOF vessels, especially in the subsea segment at these strong levels?

Mons Aase: Of course, we have said perhaps that the next you will see from DOF Group is selling a boat, and of course, we have sold a few. Yeah, it is correct. You see there is a fairly short distance between pricing of a secondhand boat and a new boat. We cannot guarantee anything, but of course, we are looking at selling a couple of boats more. We will have to come back to that one when it firms up, if it firms up.

Speaker #3: Yeah. Of course we

Speaker #2: I have said, perhaps, that the next you will see from DOF is selling a boat, and of course, we have sold a few. And yeah, that's correct.

Speaker #2: Yeah, you know, you see there is a fairly short distance between the pricing of a secondhand boat and a new boat. Yeah, so we can't guarantee anything.

Speaker #2: But of course, we are looking at, you know, selling a couple of boats more. Yeah. But we will have to go back to that when it firms up, if it firms up.

Speaker #1: Thank you. Any questions on tax? The tax and tax rate are quite a bit higher this quarter. Can you break down the effects and explain why this is?

[Company Representative] (DOF): Thank you. Then a question on tax. The tax and tax rate is quite a bit higher in this quarter. Can you break down the effects and explain why this is?

Speaker #3: Yeah. I can at least try. It is higher, and the main difference is Amazonas. So it has a tax effect in the P&L.

Martin Lundberg: Well, I can at least try. It is higher, and mainly the big difference is Skandi Amazonas. So it has a tax effect in the P&L, although it is not a cash tax because there is a corresponding opposite effect on realization of the dollar loan in Norskan that eliminates the effect. But the value of that tax loss from the loan was booked, so as a temporary difference. So you utilize deferred tax assets on that particular event. So from the overall tax cost of NOK 68, 69 on the management accounts for the quarter, more than half is reduction in deferred tax assets, so utilizing former losses. If you look on the cash flow, only NOK 23 was tax paid in the quarter.

Speaker #3: Although it is not a cash tax because there is a corresponding opposite effect on realization of the dollar loan in Nuuska, that, let's call it, eliminates the effect.

Speaker #3: But the value of that tax loss from the loan was booked as a temporary difference. So, you utilize deferred tax assets on that particular event.

Martin Lundberg: So you utilize deferred tax assets on that particular event. So from the overall tax cost of NOK 68, 69 on the management accounts for the quarter, more than half is reduction in deferred tax assets, so utilizing former losses. If you look on the cash flow, only NOK 23 was tax paid in the quarter. So of course, you recognize the P&L effects on tax for every penny that you earn, but you utilize the tax loss carry forwards to eliminate the payments of it.

Speaker #3: So from the overall tax cost of 68, 69 on the management accounts for the quarter, more than half is a deferred reduction in deferred tax assets.

Speaker #3: So utilizing former losses. And if you look at it on the cash flow, only 23 was tax paid in the quarter. So of course, you recognize the P&L effects on tax for every penny that you earn.

Martin Lundberg: So of course, you recognize the P&L effects on tax for every penny that you earn, but you utilize the tax loss carry forwards to eliminate the payments of it.

Speaker #3: But you utilize the tax loss carryforwards to eliminate the payments of it.

Speaker #1: Thank you. And then, slightly related, what was the Scandia Amazonas accounting effect on net profit for the quarter?

[Company Representative] (DOF): Thank you. Slightly related, what is the Skandi Amazonas accounting effect on net profit for the quarter?

Speaker #3: Yeah, so that is very related. Yeah, so the EBITDA effect of 110 less the book value of 42 will take you to 68. And if you then include the tax effect of roughly, let's say, just out of 20, it takes you to 50. Of course, it's simplified, but in that range.

Martin Lundberg: Yeah. That is very related. The EBITDA effect of NOK 110 less the book value of NOK 42 will take you to NOK 68. If you then include the tax effect of roughly, let's say just south of NOK 20, it takes you to NOK 50. Of course, it is simplified, but in that range.

Speaker #1: Thank you. There's a very small wave of new builds coming on the CSV side in the not too distant future. Does that affect your contracting strategy on the CSV side, and do you see the new builds potentially affecting rates in the segment?

[Company Representative] (DOF): Thank you. There is a small wave of new builds coming on the CSV side in the not too distant future. Does that affect your contracting strategy on the CSV side? Do you see the new builds potentially affecting rates in the segment?

Mons Aase: To the first, I think we have said for a long time we are pushing and doing that for a few years long term, and we continue to do that. On the new builds, you have to remember that on the CSV side, of course, the contract we are winning is not a boat, it is a full service. Of course, we do not compete with these ship owners that are building these boats. Actually it is more a client of them. We have chartered in boats for a few of them, and of course we put services and equipment and use the boats. I do not see our segment, mostly end users, being influenced by these boats. Neither I think that the rate levels for a few time charter on the boats will be influenced. I doubt that. I think there is good activity and opportunities for these owners.

Speaker #2: I, to the first—I think we have said for a long time, we are pushing, doing that for a few years, long term. And we continue to do that.

Speaker #2: Yeah. And on the new builds, you know, you have to remember that on the CSV side, of course, the content we are winning, of course, is not a boat.

Speaker #2: Yeah. It's a full service. Yeah. So it's because we, of course, don't compete with these CSV owners that are building these boats. We actually are more a client of them, you know. We have chartered in boats for a few of them.

Mons Aase: Actually it is more a client of them. We have chartered in boats for a few of them, and of course we put services and equipment and use the boats. I do not see our segment, mostly end users, being influenced by these boats. Neither I think that the rate levels for a few time charter on the boats will be influenced. I doubt that. I think there is good activity and opportunities for these owners.

Speaker #2: And of course, we put services and equipment and use the boats. So I don't see the OA segment towards the end users, you know, being influenced by these boats.

Speaker #2: And that are, I think, the rate levels for pure time charter on, you know, these boats will be influenced. I don't—I doubt that.

Speaker #2: You know, I think there is good activity and opportunities for these owners. But of course, they shouldn't expect to get the rates much higher than what we see for, you know, the boats already working in that segment.

Mons Aase: But of course, they shouldn't expect to get the rates much higher than what we see for the boats already working in the segment. It might be that they will not get the 90k a day that they dream of, but they have to be satisfied with 75 to 80.

Speaker #2: Yeah, so it might be that they will not get the $90,000 a day that they dream of, but they have to be satisfied with $75,000 to $80,000.

Speaker #1: Thank you. Then on the header contract in Suriname, as you say, it's the first ever in the country and has a long duration. Could you say a bit about what she is going to do there, and do you expect to put additional vessels to work in Suriname?

[Company Representative] (DOF): Thank you. On the Heeru contract in Suriname, as you say, first ever in the country and a long duration. Could you say a bit about what she is going to do there? Do you expect to put additional vessels to work in Suriname?

Speaker #2: Of course, what she is doing is she will be used, of course, for mooring jobs. She will also be used for supply.

Mons Aase: What she is doing is she will be used, of course, for mooring jobs. She will also be used for supply, but then also quite a bit on IRM and on construction work. She will, for instance, install Christmas trees and similar equipment. So it's like a field support contract including anchor handling duties.

Speaker #2: But then also quite a bit on IRM and on construction work. Yeah. She will, for instance, install Christmas trees and similar equipment. Yeah. So it's, you know, it's like a field support contract.

Speaker #2: Yeah, including anchor and utilities, and of course, a subsea scope on top of the vessel. Yeah.

[Company Representative] (DOF): Thank you.

Mons Aase: the subsea scope on top of the vessel.

[Company Representative] (DOF): Indeed. On the extensions on Skandi Búzios and Skandi Recife, how should we think about the terms of those extension periods compared to the current contracts?

Speaker #1: Indeed. Then, regarding the extensions on Buceus and Resisa, how should we think about the terms of those extension periods compared to the current contracts?

Speaker #2: No, I guess you should think it's very similar.

Mons Aase: No, I guess you should think it is very similar.

Speaker #1: Thank you. I have a couple of questions on the Scandia A3G and the status of that vessel. What options are we considering for that vessel going forward now that the current contract is about to expire?

[Company Representative] (DOF): Thank you. A couple of questions on Skandi Acergy and the status of that vessel and what options we are considering for that vessel going forward now that current contract is about to expire.

Mons Aase: I guess plan is to, as we used before we did a contract, is to run her ourselves and we are building back up for her and I do not remember, but I think we have at least booked 150 days for her in 2027 already and more to come. So she will go in, be part of the DOF Subsea operator fleet.

Speaker #2: No. I guess the plan is, as we used before, to do as we did before we did the contract: to run ourselves, and building back to forward.

Speaker #2: And I don't remember, but I think we have at least booked 150 days for her in 2027 already, and more to come. So, she will go in, be part of the search, operate the fleet.

[Company Representative] (DOF): Great. Next one. How do you see the project activity developing from 2026 into 2027? Is it up, flat or down, do you reckon?

Speaker #1: Great. Next one: how do you see the project activity developing from '26 into '27? Is it up, flat, or down, do you reckon?

Mons Aase: As we said on anchor handling side, we expect it to be up. On the CSV side, we also see I think 2027, but this is more me being my stomach talking and not. So my gut feeling tells me that it will be higher activity in 2027 compared to 2026. But that is not, I do not have a, like I had on the anchor handler, so I am showing slides on it. It is just my overall feeling looking at our prospect list, looking at our backlog and look at the opportunities. So I cannot guarantee that. But that is my feeling.

Speaker #2: As you said, on the anchoring side we expect it to be up on the CSV side. We also see, I think, '27 but, of course, this is more me being, you know, my stomach talking and not—so my gut feeling tells me that there will be higher activity in '27 compared to '26.

Speaker #2: But that is not—I don’t have, like I had on the anchor, and I’m showing slides on it. It’s just my overall feeling looking at our prospect list, looking at our backlog, and looking at the opportunities.

Speaker #2: So I can't guarantee that, but that's my feeling.

[Company Representative] (DOF): Okay. Question on the PIDF project. Did this contribute to the full quarter? And what can you say regarding the level of contributions from this contract going forward?

Speaker #1: Okay, question on the PIDF project. Did this contribute to the full quarter, and what can you say regarding the level of contributions from this contract going forward?

Speaker #2: Well, as we said, it's been in a startup phase in Q1 and into Q2, and a few of the boats have been on mobilization and acceptance.

Mons Aase: As we said, it has been in a startup phase in Q1 and into Q2, and a few of the boats have been on a mobilization and acceptance test. You could say that only from, you correct me if I am wrong, but I guess only from June we saw the PIDF project on, let us say, in full activity. We of course expect H2 on that to be better than what we have seen in Q1.

Speaker #2: So you could say that only from—you can correct me if I’m wrong—but I guess only from June we saw the PIDF project, let's say, in full activity.

Speaker #2: So, we of course expect the second half on that to be better than what we have seen in the first half.

[Company Representative] (DOF): Thanks. For the two new CSVs, what would be your preference, using them on project or on more long-term field support type contracts?

Speaker #1: Thanks. For the two new CSVs, what would be your preference—using them on projects or on more long-term, field-support-type contracts?

Mons Aase: I think I give you what we do with exactly those two. Both, I guess what we want to keep, let us say the mix on the total fleet on what is on long term and what is on short term. Whether these are ready to go on long term or do projects. But of course we are chasing more long-term work to keep the backlog under risk in the company at decent low level. But where we are going with these two boats, I would be open. But of course, there are a few opportunities around the globe, key clients needing more capacity both in Africa and in the Caribbean and other places. So we are optimistic on finding good work for them. But I do not know whether they go on long term or somebody else go on long term. It is too early to say.

Speaker #2: Yeah. You know I think I give a you know what we do with exactly those two boats. I guess what we want a key let's say the mix you know on the total fleet on what is on long term and what is on short term.

Speaker #2: Yeah. So whether these are isolated, go on long term, or do projects, you know. But, you know, of course we are chasing more long-term work to keep the backlog and the risk in the company at a decent, low level.

Speaker #2: So, but where we are going with these two boats, you know, I wouldn't comment. Yeah. But of course, there are a few opportunities around the globe, you know—key clients needing more capacity, you know, both in Africa and in the Caribbean and other places.

Mons Aase: But where we are going with these two boats, I would be open. But of course, there are a few opportunities around the globe, key clients needing more capacity both in Africa and in the Caribbean and other places. So we are optimistic on finding good work for them. But I do not know whether they go on long term or somebody else go on long term. It is too early to say.

Speaker #2: Yeah. So we are optimistic about finding good work for them, but I don't know whether they will go on long-term, say.

Speaker #1: Yeah, Canada. A lot of moving parts there in the years ahead. With your strong position, what are your expectations for additional vessel demand in Canada?

[Company Representative] (DOF): Yeah. Canada, a lot of moving parts there in the years ahead. With your strong position, what are your expectations for additional vessel demand in Canada?

Mons Aase: It's a good question. Of course, it's not a big market. But of course, you saw we are increasing with one boat now. We announced two anchor handler contracts in Canada, and one of them is coming from the North Sea. Going forward, we see a few opportunities there. You have a few clients. So there are a few tenders we are working on. Then of course, you have the Equinor Bay du Nord project, of course, if that final decision, of course that will drive the demand from roughly 2029. I think to summarize, Conor, is that we don't expect an enormous growth, but perhaps there will be opportunities to grow slowly. Then perhaps if Bay du Nord, of course, there might be opportunities for us long term, but of course, there are competition. But a steady, stable, slow-growing market is what we see.

Speaker #2: No. It's a good question. Yeah. Of course it's it's not a big market. Yeah. And but of course you saw we just we are increasing with one boat now you know we announced two anchor and contract in Canada and one of them is coming from the North Sea.

Speaker #2: So, and going forward, we see a few opportunities. Yeah, we have a few clients that—you know, there are a few tenders we are working on now.

Speaker #2: And then, of course, you have the Equinor Bay, the new project. Of course, if that final decision goes through, that will drive the demand from roughly 29.

Speaker #2: So I think, you know, to summarize Canada is that we don't expect enormous growth, but there perhaps would be opportunities to grow slowly.

Mons Aase: I think to summarize, Conor, is that we don't expect an enormous growth, but perhaps there will be opportunities to grow slowly. Then perhaps if Bay du Nord, of course, there might be opportunities for us long term, but of course, there are competition. But a steady, stable, slow-growing market is what we see.

Speaker #2: And then perhaps if, by the North, of course, it might be opportunities for us long term. But of course, there is competition, yeah. So, but the study is a stable, slow-growing market—that's how I see it.

Speaker #1: Yeah, fair enough. And then a follow-up on Canada: which anchor handlers will you have working in Canada in 2027?

[Company Representative] (DOF): Yeah, fair enough. Then a follow-up on Canada. Which anchor handlers will you have working in Canada in 2027?

Speaker #2: Yeah. I guess if you follow the slide we had on, you know, on the anchor and we show the backlog for those.

Mons Aase: If you follow the slide we had on the anchor handler, we show the backlog for those. Then you saw who is on contract then. As of today we have a Skandi Cutter, Klipa and three AMS classes in Canada, and then we are adding one more. So that could be I guess everybody will know that pretty soon anyway when the works start transiting. So it will be four AMs and Skandi Cutter and Klipa. If we have more, I don't remember if we have more, but at least three AMs. So it will be four AMs and Skandi Cutter and Klipa.

Speaker #2: And then you saw who is on contract, and so today, who do we have? We have a cutter, a clipper, and three N-classes in Canada.

Speaker #2: And then we are adding one more. Yeah. So, that could be—so, it's not—you don't—and I guess everybody will know that pretty soon anyway, when this boat starts transiting.

Speaker #2: So it will be Forums, Clipper, and Cutter. Do we have more? I don't remember if we have more, but at least three amps.

Speaker #2: So it will be four AMPs, and cutter and clipper.

Speaker #1: Yeah, no, that's the list of the anchor handlers in Canada. That's correct. Are there any reasons why you're experiencing more or tougher competition now compared to a year ago, both on time charter vessel deals and subsea projects?

[Company Representative] (DOF): Yeah. No, that's the list of the anchor handlers in Canada. That's correct. Are there any regions where you are experiencing more or tougher competition now compared to a year ago, both on time charter vessel deals and subsea projects?

Speaker #2: I don't think there has been any major change in the competition; at least, I think it's the same as we saw a year ago.

Mons Aase: I don't think there has been any major change on the competition. At least I think it is the same as we saw a year ago.

Speaker #2: Yeah.

Speaker #1: All right. And then, in which areas both on...

[Company Representative] (DOF): All right. In which areas both on-

Mons Aase: Perhaps to add on, perhaps on the anchor handling side, you have seen consolidation. You could perhaps argue that there is a bit less competition on the very high-end anchor handling market.

Speaker #2: Perhaps to add on, perhaps on the anchor handling side, you have seen consolidation. Yeah, so you could perhaps argue that there is a bit less competition on the very high-end anchor handling market.

Speaker #1: Okay. And then another one on the competitive position. Where do you see DOF as the strongest relative to the competition, both in terms of types of jobs and locations?

[Company Representative] (DOF): Another one on the competitive position. Where do you see DOF as the strongest relative to the competition, both on types of jobs and locations?

Speaker #2: Oh, that's a difficult one. Yeah. And of course, our competitors might disagree strongly. I think, always, where we are strongest is on high-end anchor handlers.

Mons Aase: Oh, that's a difficult one. Yeah, of course, our competitors might disagree strongly. I think where we are strongest is on higher end candidates load and on the FSB IRM side of the business and into the smaller circle. That's I think where we are strongest. Geographically, you mentioned Canada, of course, we have a very strong position in that. I think we are getting into a very strong position in the Caribbeans. Of course, Brazil, needless to mention, and APAC is pretty strong as well, especially in the Australian area. Then, I think we deserve a higher market share in North than we have, but of course, we're working on that. West Africa, yeah, was not a dominant player, but I think strong foothold and hopefully be able to capture many more deals and grow the business there as well.

Speaker #2: No doubt. And, you know, on the FSB IRM side of the business and into the smaller sub-projects—yeah, that's, I think, where we are strongest.

Speaker #2: And, you know, geographically—you just mentioned Canada, of course, where we are in a very strong position. I think we are getting into a very strong position in the Caribbean.

Speaker #2: Of course, Brazil—needless to mention. And the APEC is pretty strong as well, especially in the Australian area. And then, you know, I think we deserve a higher market share in the North Sea than we have.

Mons Aase: Then, I think we deserve a higher market share in North than we have, but of course, we're working on that. West Africa, yeah, was not a dominant player, but I think strong foothold and hopefully be able to capture many more deals and grow the business there as well.

Speaker #2: But of course, working on that. And West Africa, yeah. Of course, not the dominant player but a strong foothold, and hopefully be able to capture and win more deals and grow the business there as well.

Speaker #2: So, that was, I guess, a very modest answer. Yeah. So, yeah.

Mons Aase: So that, I guess, was a very moderate answer, yeah?

[Company Representative] (DOF): Yeah, I think so far. All right. Very good. That concludes the Q&A session that we had for you today. Thank you everyone for your good questions. Thank you, Mons and Martin, for your answers and your presentation.

Speaker #1: I think so far, all right. Very good. That concludes the Q&A session that we had for you today. Thank you, everyone, for your good questions.

Speaker #1: And thank you, Mons and Martin, for your answers and your presentation.

Speaker #2: Thank you. Thank you all for listening, and have a nice day. And bye-bye, I would say. And you, Martin, some final words from you?

Mons Aase: Thank you. Thank you all for listening and have a nice day and bye-bye, I would say. You, Martin, some final words from you?

Speaker #3: No, I think it's, "Thank you all for attending, and enjoy the rest of your day."

Martin Lundberg: No, I think it's thank you all for attending and enjoy the rest of your days.

Speaker #2: Thank you very much.

Mons Aase: Thank you very much.

Martin Lundberg: Thank you.

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Half Year 2026 DOF Group ASA Earnings Call

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