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DOF ASA Financial Report

Q4 2013

DOF ASAAlfabygget5392 StorebøNORWAYwww.dof.no

IndexFinancial Report Q4 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Accounts Q4 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Condensed consolidated income statement . . . . . . . . . . . . . . . . . . . 9

Condensed statement of comprehensive income . . . . . . . . . . . . . 9

Condensed consolidated statement of financial position . . . 10

Condensed consolidated statement of equity. . . . . . . . . . . . . . . . 11

Key figures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Condensed statement of cash flow . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Notes to the Accounts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Note 1 General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Note 2 Segment information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Note 3 Hedges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Note 4 Cash and cash equivalent . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Note 5 Interest bearing liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Note 6 Events after balance date. . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Note 7 Transaction with related parties . . . . . . . . . . . . . . . . . . . . . 16

Note 8 Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Note 9 Share capital and shareholders. . . . . . . . . . . . . . . . . . . . . . 17

Contract Coverage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

PSV Contract Coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

AHTS Contract Coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

CSV Contract Coverage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Financial Report Q4 2013 DOF ASA

4

Significant events Q4 2013Group income for Q4 totalled NOK 2,633 million (NOK 2,062 million). Operating profit before depreciation (EBITDA) was NOK 830 million (NOK 692 million). Average utilisation in Q4 for the Subsea fleet was 94% (89%) and for the Supply fleet 91% (91%). The Group operated during Q4 five vessels fully or partly in the North Sea and Brazilian spot market. The utilisation for the subsea project fleet was high during the period.

Several new contracts have been entered into during Q4 and year to date. In Brazil, the subsidiary Norskan secured a long term contract for its latest newbuilding Skandi Paraty with delivery in 2015 and a new 4-year contract for Skandi Copacabana with Petrobras. In addition four AHTS contracts were extended in Brazil and new ROV contracts for DOF Subsea were secured.

In January 2014, DOF ASA issued a bond loan of NOK 700 million, of which NOK 235 million was used to repurchase parts of DOF08. The refinancing of the existing bond loan maturing 2015 is thereby completed. In January 2014, the subsidiary DOF Subsea delivered Skandi Bergen to the new owner. The sale resulted in a gain of approx. NOK 200 million, which will be reported in Q1, 2014.

DOF ASA is an international Group of companies involved in the ownership and operation of a fleet of PSV, AHTS, Subsea vessels and service companies offering services to the subsea market. The Group has a modern fleet of vessels, with an average age of 8 years and a value adjusted age of 5 years. As of February 2014 the fleet (wholly/partly owned) comprises 77 vessels, of which 69 vessels are in operation, and 8 vessels are newbuildings due for delivery in 2014-2017. The fleet comprises of 20 AHTS, 24 PSV and 33 Subsea vessels. In addition, the Group owns a fleet of 59 modern ROVs.

The majority of DOF ASA’s fleet operates on long-term contracts. As of February the nominal value of these contracts total approx. NOK 29,418 million excluding options and approx. NOK 62,094 million including options. The contract coverage in 2014 is 79% and in 2015 52%.

Q4 Operations The Group operates within three segments; PSV, AHTS and CSV/Subsea. The PSV and AHTS fleet is mainly chartered

on long-term contracts. The Subsea fleet operates partly on fixed contracts and partly in the project market. In the project market the utilisation of the fleet is impacted by the market and seasonal fluctuations. The subsea segment also includes engineering services.

PSVThe majority of the PSV fleet was employed on fixed contracts during the period, with an utilisation rate of 89%. In Q4, the fleet comprised of 23 vessels in operation, of which 18 vessels operated in the North Sea and nearby areas. Three vessels operated in the North Sea spot market with stable utilisation rates, but with lower revenues than previous quarter. One vessel, Skandi Fjord, ended its contract with Halliburton during the period. The vessel demobilised in December and operates today as a PSV. The fleet in Brazil and Asia/Australia comprises five PSVs, all on fixed charters during the period. AHTSThe main part of the AHTS fleet operates in Brazil where all vessels, except two, were on fixed charters this period. Out of 18 AHTS vessels in operation, five are owned 50% via Aker DOF Deepwater AS. The utilisation rate for the AHTS fleet was 93% (91%) during the period.

In Brazil, two vessels operated in the short term market during the period. Skandi Ipanema had high utilisation throughout Q4. A new 4-year contract with Petrobras was secured for this vessel end November, with start-up during Q1, 2014. Skandi Møgster terminated its contract with OGX in October due to the charterer’s financial problems and the vessel was idle for the remaining part of Q4. The Group has booked a loss of NOK 35 million due to the OGX contract. Skandi Møgster entered into a new contract in Q1, 2014.

Two vessels operated on fixed charters in Egypt and three vessels operated on fixed charters in Australia and New Zealand.

Financial Report Q4 2013

Fleet utilisation

50 %

60 %

70 %

80 %

90 %

100 %

110 %

Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13

Utilisation

PSV AHTS CSV PSV AHTS CSV/Subsea

Financial Report Q4 2013DOF ASA

5

The Group has a minority stake in Skandi Iceman, a newbuilding delivered in October. The vessel has since delivery operated in the North Sea spot market.

SUBSEAThe Subsea fleet comprises 29 vessels in operation, of which the main part of the fleet is controlled by the subsidiary DOF Subsea.

The project market was strong until the middle of December, with high utilisation for the vessels both in the North Sea, Asia and the Gulf of Mexico. The activity level in the North Sea fell during the last part of December as expected. The utilisation for the subsea fleet was 87% during Q4, with 98% utilisation in October, 95% in November and 72% in December.

In the North Sea, the projects on the Banff and Knarr field in addition to projects for Conoco Phillips, contributed substantially to the activity. Skandi Skolten, Geosund and Skandi Bergen were all employed on projects in this region. Skandi Bergen was fully utilised until the middle of December, after which the vessel was prepared for sale. Skandi Hercules, Skandi Singapore and Skandi Hawk were working on projects in Asia, including projects on the Philippines, Australia and New Zealand. In the Gulf of Mexico the utilisation of the chartered vessel Harvey Deep Sea has been satisfactory. One vessel, the Geoholm, sailed to Brazil in December for an 18 months contract for Petrobras.

The remaining subsea fleet is on fixed contracts, with satis-factory utilisation of 98% in October, 97% November and 93% in December.

Main Items Interim Accounts Q4 • Operating income totals NOK 2,633 million (NOK 2,062

million).• Operating profit before depreciation (EBITDA) totals

NOK 830 million (NOK 692 million).• Operating profit (EBIT) amounts to NOK 534 million

(NOK 320 million). • Total financial expenses before unrealised gains/ losses

and change in fair value of financial instruments totals NOK -333 million (NOK -354 million)

• Unrealised gain/loss on foreign exchange totals NOK -11 million (NOK 45 million) and net changes in fair value of financial instruments totals NOK -38 million (NOK 2 million).

• The pre-tax result excl. unrealised changes in foreign exchange and financial instruments is NOK 201 million (NOK -34 million).

• Pre-tax profit totals NOK 152 million (NOK 13 million).

• Net interest bearing debt as per 31 December 2013 is NOK 21,984 million (NOK 20, 878 million).

• Book equity including minority interest as of 31 December 2013 is NOK 6,341 million (NOK 6,720 million).

The Group implemented as from the 4th Quarter hedge accounting for parts of the revenues related to the Brazilian operation. This operation is based on long-term charters in USD secured with debt in corresponding currency. It is expected that hedge accounting for this part of the Group’s operations will result in less volatility due to foreign exchange risk both on operating result and financial result going forward.

The portion of long-term debt secured with fixed rate of interest is approx. 53%.

Tax expense is based on best estimate.

Total balance as per 31 December 2013 is NOK 32,800 million (NOK 31,754 million), of which vessels, newbuildings and subsea equipment amounts to NOK 26,890 million (NOK 26,602 million).

Capital not employed relates mainly to prepaid instalments on 8 newbuildings totalling NOK 646 million (NOK 423 million).

Net cash flow from operations is NOK 911 million (NOK 641 million). Net changes from investment activities is NOK -76 million (NOK -641 million), and net changes from financing activities is NOK 60 million (NOK 197 million). Financing and Capital Structure as of DecemberThe Group’s remaining commitment for vessels under construc-tion totals approx. NOK 7,650 million as per 31 December and covers eight vessels with scheduled delivery from 2014 – 2017. The building contracts are at fixed price including payment terms where part of the contract price is payable prior to delivery. Five of the vessels will be built in Brazil and three in Norway. Four vessels are owned 50/50 in a joint venture between DOF Subsea and Technip. The newbuildings are all secured on long-term contracts.

Operating income per segment Q4 2013 Operating Ebitda per segment Q4 2013

0

0,2

0,4

0,6

0,8

1

2014 2015

Contract coverage at 31.12.2013

AHTS

CSV

PSV PSV

AHTS

CSV/Subsea

0

0,2

0,4

0,6

0,8

1

2014 2015

Contract coverage at 31.12.2013

AHTS

CSV

PSV PSV

AHTS

CSV/Subsea

Operating income per segment Q4 2013

PSV

AHTS

CSV

Operating Ebitda per segment Q4 2013

PSV

AHTS

CSV


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DOF ASA issued in January a 4-year bond loan of NOK 700 million at coupon NIBOR + 4.75% p.a. In connection with this placement DOF ASA bought back NOK 235 million of DOF08 with maturity in March 2015. Remaining debt balance with maturity 2015 is NOK 344 million.

The Group’s net interest bearing debt is expected to reach its peak in 2013, and thereafter to decline during 2014 and onwards, despite investments in new vessels. The development of the net interest bearing debt during 2013 is shown below:

Vessels and equipment constitute 80% of the company’s total assets. The market value of the Group’s fleet has been stable through 2013, and broker estimates of fleet values state a considerable excess value compared to book values as of 31 December 2013. The Group’s most important financial covenant in existing loan agreements is based on minimum value adjusted equity of 30% or higher than 20% if the Groups contract coverage exceeds 70% the next 12 months, and a minimum cash covenant of NOK 500 million for the Group.

The Group’s reports book equity ratio of 19% of total assets. Adjusted for fleet market values, value adjusted equity ratio is 36%, giving a NAV per share of NOK 77. The Group’s free liquidity by 31 December 2013 was NOK 1 579 million. The Group is in compliance with its financial covenants as of 31 December 2013.

Main Items 2013 YTD Accounts The total operating income for 2013 totals NOK 9,754 million (NOK 8,136 million). Operational EBITDA is NOK 3,103 million (NOK 2,790 million), and total EBITDA including gain from sale of asset is NOK 3,111 million (NOK 3,000 million). EBIT totals NOK 1,917 million (NOK 1,890 million).

The average utilisation in 2013 was 94% (90%) for the Subsea fleet, 94% (96%) for the PSV fleet and 88% (88%) for the AHTS fleet.

Net financial expenses before unrealised gain/losses and change in fair value of financial instruments total NOK -1,332 million (NOK -1,330 million), and total net financial expenses is NOK -1,943 million (NOK -1,625 million).

Cash Flow Statement

Shareholders There were no significant changes in the shareholder structure during the period. As of 31 December, the company had 3,232 shareholders. The share price per 31 December was NOK 31.70.

The FleetAs of February 2014 the Group’s fleet totals 69 vessels in operation, in addition to 8 vessels under construction. The vessels under construction are 3 AHTS, 1 Construction support vessel and 4 PLSV’s (owned 50/50 DOF Subsea & Technip). In addition, DOF Subsea has 52 ROVs in operation and has 7 on order.

DOF Subsea has one construction vessel on order, Hull no. 800 at Vard, Norway with planned delivery in Q2, 2015. The vessel will have a LOA of 161m and a beam of 32m and will be equipped with a 900 ton crane. The vessel will enter into a 5-year contract with Technip upon delivery. DOF Subsea has secured long term financing for the newbuilding.

A joint venture company owned by DOF Subsea and Technip has ordered four Pipe Laying Vessels (PLSV), of which two

Net interest bearing debt 01.01.-31.12.2013

0

5000

10000

15000

20000

25000

30000

NIBD 31.12.2012

Net cash operations

Investments

New borrowings

Repayment

Other NIBD 31.12.2013

(MN

OK

)

Net interest bearing debt 31.12.12 - 31.12.13

Fleet overview Q4 2013

Num

ber o

f ves

sels

PSV AHTS CSV/Subsea

Newbuildings

In operation

0 5

10 15 20 25 30 35 40

PSV

AHTS CSV

Num

ber o

f ves

sels

Fleet overview Q4 2013

Newbuildings

In operation

MNOK 2013 2012

Cash from operating activities 2 849 2 411

Net interest paid -1 382 -1 186

Taxes paid -48 -43

Net cash from operating activities 1 419 1 182

Net cash from investing activities -1 518 -2 233

Net cash from financing activities 242 1 170

Net changes in cash and cash equivalents 144 119

Cash and cash equivalents at the start of the period 2 145 2 040

Exchange gain/loss on cash and cash equivalents 25 -14

Cash and cash equivalents at the end of the period 2 314 2 145


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will be built in Norway and two in Brazil. All vessels have entered into 8+8 year contracts. The vessels will be equipped to operate on ultra-deep water; the Norwegian built vessels will be equipped with 650 ton pipe-laying towers and the Brazilian built vessels will be equipped with 350 ton towers. The vessels will be delivered from 2016-2017. The planned long-term financing of the newbuildings is a combination of Norwegian and Brazilian export credit (BNDES) and commercial lending.

The subsidiary Norskan has three AHTS under construction at Vard, Brazil. The first vessel has expected delivery in Q1, 2014, and the second vessel in Q4, 2014. The vessels will upon delivery enter into 8+8 year contracts with Petrobras. The third vessel has expected delivery in 2015 and will enter into a 4-year contract with Petrobras upon delivery. The newbuildings are all secured with long term financing.

The company owns 20% of Skandi Iceman, which was delivered from yard early October. The vessel is an AHTS equipped with ROV, and ice-classed for work in the arctic area. Skandi Bergen was delivered to new owners in January 2014. A gain from the sale of approx. NOK 200 million will be reported in Q1, 2014.

Market/ New ContractsThe Group’s fleet operates world-wide, with the most important operation areas being the North Sea, West Africa, Brazil and Asia/Australia.

New ContractsDOF Subsea secured a number of new contracts during the period. In November, DOF Subsea secured a 5-year contract with Tecnhip for hull no. 800 at Vard. In December, further contracts were awarded by Petrobras to DOF Subsea; 4 ROVs, which will be operated both on the Group’s vessels and on external vessels and one 18-month contract for Geoholm. Beyond these contracts, DOF Subsea has secured good contract coverage for its project fleet, both in the Atlantic region and in the Gulf of Mexico.

In November, Norskan was awarded a 4+4 year contract for Skandi Ipanema and a 2-year extension of the existing contract for Skandi Botafogo by Petrobras. Petrobras also awarded two 4-year contracts for Skandi Rio and Skandi Fluminense. In December, DOF was awarded 1+1 year contracts both for Skandi Møgster and Skandi Saigon to Total Austral, Argentina. Skandi Olympia was awarded a 3+2 year contract with Fugro Subea Services Ltd.

In Q1, 2014, Norskan has secured a 4-year contract for its latest newbuilding, Skandi Paraty, and a new 4-year contract with Petrobras for Skandi Copacabana. In the North Sea fleet, both Skandi Marstein and Skandi Waveney secured long term contracts in January. In addition, Skandi Sotra, Skandi Falcon and Skandi Fjord all have been secured 90-day fixed contracts.

In the Atlantic region DOF Subsea has been awarded call-off contracts for 2014 and 2015 under an existing survey frame agreement with Statoil and a 6-month extension on the Ocean Protector contract with Australian Customs.

The North Sea spot market has been better than expected. Especially the PSV fleet has experienced a good market balance. In February, this has led to higher rates and higher utilisation. The AHTS fleet has seen a more volatile market. The market for AHTS was very strong during the first half of January, but has since experienced lower rates and utilisation. As of end of 2013, 315 vessels operated in the North Sea, of which 109 vessels operated in the spot market.

OutlookThe Group has as of February 69 vessels in operation, of which the main part of the fleet operated on long term charter parties.

The Group is presently exposed with four PSVs and one AHTS in the North Sea spot market and the intention is to continue to limit the exposure to the short term market during 2014 for this part of the fleet.

DOF Subsea has the main part of its fleet secured on fixed charter parties. While a good employment is secured for the project fleet both in the Atlantic region and in the Gulf of Mexico, the contract coverage for the project fleet is somewhat lower in Asia.

The Board of Directors expects today a growth in earnings in 2014 compared to last year.


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The Board of Directors of DOF ASA, 26 February 2014

IR contact persons:

Mons S. Aase, CEO +47 91661012 [email protected] Drønen, CFO +47 91661009 [email protected]

DOF ASA5392 Storebøwww.dof.no

Helge SingelstadChairman

Oddvar StangelandDirector

Wenche KjølåsDirector

Helge MøgsterDirector

Karoline MøgsterDirector

Mons S. AaseCEO/Managing Director


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Accounts Q4 2013

Condensed consolidated income statement

Condensed statement of comprehensive income

(MNOK) Note Q4 2013 Q4 2012 2013 2012

Operating income 2 2 633 2 062 9 754 8 136

Operating expenses -1 806 -1 377 -6 651 -5 346

Net gain on sale of tangible assets 3 7 8 210

Operating profit before depreciation EBITDA 2 830 692 3 111 3 000

Depreciation -296 -372 -1 193 -1 110

Impairment loss - - - -

Operating profit - EBIT 2 534 320 1 917 1 890

Net profit from associated companies -6 4 1 5

Financial income 17 21 62 71

Financial costs -361 -336 -1 434 -1 325

Net realized gain/loss on currencies 17 -43 39 -81

Net unrealized gain/loss on currencies -11 45 -606 -206

Net changes in fair value of financial instruments -38 2 -5 -89

Net financial costs -382 -307 -1 943 -1 625

Profit (loss) before taxes 152 13 -25 265

Taxes 8 -25 73 -34 85

Profit (loss) for the period 127 86 -59 350

Profit attributable to

Non-controlling interest 97 38 139 237

Controlling interest 30 48 -198 113

(MNOK) Note Q4 2013 Q4 2012 2013 2012

Profit (loss) for the period 127 86 -59 350

Currency translation differences (CTA) -66 -108 -44 -429

Hedges 3 -173 3 -178 -12

Defined benefit plan actuarial gain (loss) 1 3 1 14

Other comprehensive income/loss net of tax -238 -102 -221 -428

Total comprehensive income/loss -110 -16 -280 -77

Total comprehensive income/loss net attributable to

Non-controlling interest 43 25 91 151

Controlling interest -153 -41 -371 -229

Profit and diluted profit per share ex non-controlling interest 0,27 0,43 -1,78 1,02


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Condensed consolidated statement of financial position

(MNOK) Note 31.12.2013 31.12.2012

ASSETSDeferred tax assets 418 295

Goodwill 418 409

Intangible assets 836 704

Vessel and equipments 26 244 26 179

Newbuildings 646 423

Tangible assets 26 890 26 602

Investment in affiliated companies and other shares 136 79

Other non-current receivables 122 309

Non-current financial assets 258 387

Total non-current assets 27 983 27 693

Trade receivables 1 867 1 393

Other receivables 636 523

Current receivables 2 503 1 915

Restricted deposits 735 895

Cash and cash equivalents 1 579 1 250

Cash and cash equivalents incl. restricted deposits 4 2 314 2 145

Total current assets 4 817 4 060

Total Assets 32 800 31 754

EQUITY AND LIABILITIESPaid in equity 1 452 1 452

Other equity 1 923 2 318

Non-controlling interests 2 966 2 950

Total equity 6 341 6 720

Deferred taxes 168 161

Other provisions and derivatives 413 413

Non-current provisions and commitments 581 574

Bond loan 5 4 722 4 164

Debt to credit institutions 5 16 265 16 592

Other non-current liabilities 69 271

Non-current liabilities 21 056 21 027

Current part of interest bearing debt 5 3 012 2 000

Accounts payable 1 058 683

Other current liabilities 752 750

Current liabilities 4 822 3 433

Total liabilities 26 460 25 034

Total equity and liabilities 32 800 31 754


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Condensed consolidated statement of equity

Key figures

(MNOK) Paid-in capital

Retained earnings

Currency transla-tion differences

Total Non-controlling interest

Total equity

Balance at 01.01.2013 1 452 2 410 -92 2 318 2 950 6 720

Total comprehensive income/loss -332 -371 91 -280

Transaction with non-controlling interests -23 -23 -76 -99

Balance at 31.12.2013 1 452 2 054 -131 1 923 2 966 6 341

Balance at 01.01.2012 1 452 2 329 256 2 585 2 633 6 669

Change in accounting principle IAS19

Other benefits (pensions) - -39 - -39 -4 -42

Adjusted balance at 01.01.2012 1 452 2 290 256 2 546 2 629 6 627

Total comprehensive income/loss - 119 -348 -229 151 -77

Transaction with non-controlling interests - - - - 170 170

Balance at 31.12.2012 1 452 2 410 -92 2 318 2 950 6 720

Q4 2013 Q4 2012 2013 2012

EBITDA margin ex net gain on sale of vessel 1) 31 % 33 % 32 % 34 %

EBITDA margin 2) 32 % 34 % 32 % 37 %

EBIT margin 3) 20 % 16 % 20 % 23 %

Cashflow per share 4) 4,48 3,05 16,03 15,04

Profit per share ex. non-controlling interest *) 5) 0,27 0,43 -1,78 1,02

Profit per share ex. unrealized gain/loss 6) 1,59 0,35 4,98 5,81

Return on net capital 7) -1 % 5 %

Equity ratio 8) 19 % 21 %

Value adjusted equity 9) 36 % 39 %

Value adjusted equity per share 10) 77 81

Net interest bearing debt 21 984 20 878

Net interest bearing debt ex. unemployed capital 21 338 20 454

No of shares 111 051 348 111 051 348 111 051 348 111 051 348

Outstanding number of shares 111 051 348 111 051 348 111 051 348 111 051 348

*) Diluted number of share is the same as number of shares.

1) Operating profit before net gain on sale of vessel and depreciation in percent of operating income.2) Operating profit before depreciation in percent of operating income.3) Operating profit in percent of operating income.4) Pre-tax result + depreciation and write downs +/- unrealized gain/loss on currencies +/- net changes in fair value of financial instruments/average no of shares.5) Result ex non-controlling interest share)/average no. of shares.6) Result incl non-controlling interest + net unrealized currency gain/loss + net changes fair value of financial instruments)/average no of shares.7) Result incl non-controlling interest/total equity.8) Total equity/Total balance.9) Equity adjusted for excess values from broker valuation/Total assets adjusted for excess values from brokers valuation.10) Value adjusted equity/ Outstanding number of shares.


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Condensed statement of cash flow

(MNOK) Q4 2013 Q4 2012 2013 2012

Profit before taxes 152 13 -25 265

Profit/loss on disposal of tangible assets -3 -7 -8 -210

Depreciation and impairment of tangible assets 296 372 1 193 1 110

Net interest cost 343 243 1 371 1 183

Changes in accounts receivables 102 235 -474 142

Changes in accounts payable 175 -453 376 -174

Foreign exchange gain/losses -302 -27 255 234

Changes in other working capital 141 268 163 -133

Share of profit/loss from associates 6 -4 -1 -5

Cash from operating activities 911 641 2 849 2 411

Net interest paid -338 -211 -1 382 -1 186

Taxes paid -12 -15 -48 -43

Net cash from operating activities 561 415 1 419 1 182

Payments received for sale of tangible assets 5 57 87 819

Purchase of tangible assets -128 -687 -1 616 -3 047

Purchase of intangible assets - -9 - -9

Payments received for sale of shares - 8 - 8

Purchase of shares and associates -1 -8 -29 -21

Other investments 48 -2 40 17

Net cash from investing activities -76 -641 -1 518 -2 233

Proceeds from borrowings 752 550 3 186 5 115

Repayment of borrowings -594 -353 -2 844 -3 945

Payments from non-controlling interests -98 - -99 -

Net cash from financing activities 60 197 242 1 170

Net cash from financing activities 60 197 242 1 170

Net changes in cash and cash equivalents 545 -29 144 119

Cash and cash equivalents at the start of the period 1 759 2 174 2 145 2 040

Exchange gain/loss on cash and cash equivalents 10 -1 25 -14

Cash and cash equivalents at the end of the period 2 314 2 145 2 314 2 145


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Note 1 General

Notes to the Accounts

DOF ASA (the “Company”) and its subsidiaries (together, the “Group”) own and operate a fleet of PSV, AHTS, subsea vessels and service companies offering services to the subsea market worldwide.

The Company is a public limited company, which is listed on the Oslo Stock Exchange and incorporated and domiciled in Norway. The head office is located at Storebø in the municipality of Austevoll, Norway.

These condensed interim financial statements were approved for issue on 26 February 2014. These condensed interim financial statements have not been audited.

Basis of preparationThese condensed interim financial statements have been prepared in accordance with IAS 34, ‘Interim financial reporting’. The condensed interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2012, which have been prepared in accordance with IFRS.

The accounting policies adopted are consistent with those of the previous financial year, except as described below:- IAS 19 (revised) ‘Employee benefits’ amends the accounting for employment benefits. The Group has applied the standard

retrospectively in accordance with the transition provisions of the standard. The impact on the Group has been reduced equity at 31.12.2012 by NOK 29 million due to the recognition of estimate variances. Comparative figures have been restated.

- IFRS 13 ‘Fair value measurement’. IFRS 13 measurement and disclosure requirements are applicable for the December 2013 year end. The Group has included the disclosures required by IAS 34 para 16A(j). See Note 3.

- Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual profit or loss.

EstimatesThe preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing these condensed interim financial statements, the significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31 December 2012, with the exception of changes in estimates that are required in determining the provision for income taxes.


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Note 3 Hedges

The Group has in 2013 started applying cash flow hedge accounting related to foreign exchange rate risk on expected highly probable income in USD, using a non derivative financial hedging instrument. This hedging relationship is described below.

Cash flow hedge involving future highly probable incomeIn 2013, the Group started applying hedge accounting related to the cash flow hedging of expected highly probable income in USD, from its operations in Brazil.

The cash flow hedges a portion of the foreign currency risk arising from highly probable income in USD relating to time charter contracts on vessels owned by the companies DOF Navagacao Ltda, Norskan Offshore Ltda and DOF Subsea Navagacao Ltda.

The hedging instruments are portions of the companies’ long term debt denominated in USD. The risk being hedged in each hedging relationship is the spot element of the forward currency rate of USD/BRL. The future highly probable income has a significant exposure to the spot element as the spot element is the main part of the forward rate. The long term debt is translated from USD to BRL at spot rate on the balance sheet date every reporting period.

The effective portion of changes in fair value of the instruments that are designated and qualify as cash flow hedges is recognised in other comprehensive income. The gain or loss relating to the ineffective portion is recognised immediately in the income statement.

Amounts accumulated in equity are reclassified to profit or loss in the periods when the expected income is recognised.

Note 2 Segment information

Operating income, EBITDA and EBIT per segment

Q4 2013 Q4 2012 2013 2012

Operating IncomePSV 270 246 1 113 972

AHTS 333 352 1 322 1 291

CSV 2 030 1 464 7 319 5 873

Total 2 633 2 062 9 754 8 136

EBITDA *)PSV 99 103 452 386

AHTS 166 155 619 586

CSV 565 434 2 040 2 028

Total 830 692 3 111 3 000

EBIT *)PSV 62 68 304 266

AHTS 112 67 403 329

CSV 360 185 1 210 1 295

Total 534 320 1 917 1 890

*) EBITDA and EBIT includes gain on sale of vessel in the CSV segment in the amount of NOK 203 million in 2nd quarter 2012.


15

Note 4 Cash and cash equivalent

Note 5 Interest bearing liabilities

31.12.2013 31.12.2012

Restricted cash *) 735 895

Cash and cash equivalents 1 579 1 250

Total cash and cash equivalents 2 314 2 145

*) Including restricted cash related to non-current loan from Eksportfinans.

31.12.2013 31.12.2012

Non-current interest bearing liabilities

Bond loan 4 722 4 164

Debt to credit institutions 16 265 16 592

Total non-current interest bearing liabilites 20 988 20 756

Current interest bearing liabilities

Bond loan 454 141

Debt to credit institutions 2 190 1 784

Utilized credit facilities 368 75

Total current interest bearing liabilities 3 012 2 000

Total interest bearing liabilities 24 000 22 756

Net interest bearing liabilities

Cash and cash equivalents *) 2 314 2 145

Net derivatives -356 -365

Non-current receivables 58 98

Total net interest bearing liabilities 21 984 20 878

*) A non-current loan has been provided by Eksportfinans and is invested as a restricted deposit in DNB. The loan is fully repaid in 2021. The cash deposit is

included in restricted deposits.

Covenants regarding non-current liabilities to credit institutions:

• The Group net asset value should be higher than 30% or higher than 20% if the contract coverage for the fleet is greather than 70%.

• The Group shall have available cash of least NOK 500 million at all times.

At month end December 2013 the Group was in compliance with its financial covenants.


16

Note 7 Transaction with related parties

Note 8 Taxes

Transactions with related parties are governed by market terms and conditions in accordance with the “arm’s length principle”. The transactions are described in the Annual Report for 2012. There are no major changes in the type of transactions between related parties.

Taxes per 31 December 2013 are a preliminary estimate.

Note 6 Events after balance date

In January 2014, DOF ASA issued a new bond loan of NOK 700 million, coupon nibor + 4,75% pa. In connection with this placement DOF ASA bought back NOK 235 million of DOF08 with maturity in March 2015.

In January 2014, the DOF Subsea Group delivered Skandi Bergen to the new owner. The sale resulted in a gain of approx. NOK 200 million, which is reported in Q1, 2014.

AKOFS 2 AS has exercised the purchase option for the vessel Skandi Aker. The vessel is owned by DOF Subsea Group and the transaction will take place in February 2015.

Norskan has secured a 4-year contract for its latest newbuilding, Skandi Paraty, and a new 4-year contract with Petrobras for Skandi Copacabana.

With respect to the North Sea fleet, both Skandi Marstein and Skandi Waveney were secured long term contracts in January.

In the Atlantic region DOF Subsea has been awarded call-off contracts for 2014 and 2015 under an existing survey frame agreement with Statoil and a 6-month extension on the Ocean Protector contract with Australian Customs.


17

Note 9 Share capital and shareholders

Largest shareholders as of 31.12.2013

Name No. shares Shareholding Voting shares

MØGSTER OFFSHORE AS 56 876 050 51,22 % 51,22 %

PARETO AKSJE NORGE 6 598 270 5,94 % 5,94 %

SKAGEN VEKST 5 762 213 5,19 % 5,19 %

ODIN OFFSHORE 2 820 553 2,54 % 2,54 %

PARETO AKTIV 2 784 451 2,51 % 2,51 %

MP PENSJON PK 2 312 629 2,08 % 2,08 %

PARETO VERDI 1 298 090 1,17 % 1,17 %

MOCO AS 1 094 184 0,99 % 0,99 %

VESTERFJORD AS 1 027 650 0,93 % 0,93 %

KANABUS AS 1 004 684 0,90 % 0,90 %

FORSVARETS PERSONELLSERVICE 890 000 0,80 % 0,80 %

THE NORTHERN TRUST CO. 796 369 0,72 % 0,72 %

ODIN MARITIM 765 247 0,69 % 0,69 %

VERDIPAPIRFONDET DNB SMB 720 000 0,65 % 0,65 %

VERDIPAPIRFONDET WARRENWICKLUND NO 583 612 0,53 % 0,53 %

CITIBANK, N.A. 558 494 0,50 % 0,50 %

MOMENTUM INVESTMENTS INC 500 000 0,45 % 0,45 %

MUSTAD INDUSTRIER AS 500 000 0,45 % 0,45 %

BKK PENSJONSKASSE 478 000 0,43 % 0,43 %

PACTUM AS 450 000 0,41 % 0,41 %

Total 87 898 988 79,08 % 79,08 %

Total other shareholders 23 152 360 20,92 % 20,92 %

Total no of shares 111 051 348 100 % 100 %


18

Contract Coverage

PSV Contract Coverage

J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D

Skandi Falcon 1 1 1 1Skandi Marstein 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2

Skandi Foula 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Skandi Rona 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Skandi Buchan 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2

Skandi Sotra 1 1 2

Skandi Caledonia 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

Skandi Barra 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Skandi Texel 1 1 2 2 2

Skandi Mongstad 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2

Skandi Flora 1 1

Skandi Gamma 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2

Skandi Waveney 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

Skandi Feistein 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Skandi Kvitsøy 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Skandi Nova 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Skandi Marøy 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Skandi Hugen 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Skandi Captain

Skandi Fjord 0 1 1 1 2 2

Skandi Leblon 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

Skandi Flamengo 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2

Skandi Yare 1 1 1 1 1 1 1 1 1 1 1

Skandi Stolmen 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

PSV 2014 2015 2016

SPOT

Firm contract Option


19

AHTS Contract Coverage


Skandi Stord 1Skandi Admiral 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

Skandi Vega 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

Skandi Copacabana 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Skandi Botafogo 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Skandi Rio 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Skandi Fluminense 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Skandi Giant 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

Skandi Møgster 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2Skandi Ipanema 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Skandi Amazonas 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Skandi Iguacu 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Skandi Urca 3 3 3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Skandi Angra 3 3 3 3 3 3 3 3 3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Skandi Paraty 3 3 3 3 3 3 3 3 3 3 3 3 3 3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Skandi Peregrino 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Skandi Emerald 1 1 1 1 1 1 1 1 2 2 2 2Skandi Saigon 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2

Skandi Pacific 1 1 1 1 1 1 1 1 2 2 2 2

Skandi Atlantic 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

AHTS 2014 2015 2016

SPOT

Firm contract Option Under Construction


20

CSV Contract Coverage


Skandi Acergy 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2

Skandi Achiever 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

Skandi Aker 1 1 1 1 1 1 1 1 1 1 1 1 1Skandi Arctic 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Skandi Carla 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Skandi Constructor 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2

Skandi Neptune 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

Skandi Niteroi 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2

Skandi Patagonia 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Skandi Salvador 1 1 1 1 1 1 1 1 1 1 1 1Skandi Santos 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

Skandi Seven 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2Skandi Vitoria 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2

Ocean Protector 1 1 1 1 1 1 1 1 1 1 1 1

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Geosea 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1Skandi Hawk 1 1 1Skandi Hercules 1 1 1 1 1

Skandi Inspector 1 1 1 1 1Skandi Singapore 1 1 1

Skandi Skansen 1 1 1 1 1 2 2 2 2 1 1 1 2 2 2 2 2 2 2 2 2

Skandi Skolten 1 1 1 1 1

Geosund 1 1 1 1 1 1 1 2 2 2 1 1 1 1 1 1 1 1 2 2 2 2

Harvey Deep-Sea* 1 1 2 1 1 1 1 1

Norman Reach* 3 3 3 3 3 3 1 1

Skandi TBN (NB800) 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Skandi PLSV1 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 1

Skandi PLSV2 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3

Skandi PLSV3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 1 1 1 1 1 1 1

Skandi PLSV4 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 1

Geoholm

Geograph

Subsea 2014 2015 2016


Skandi Olympia 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Skandi Commander 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2

Skandi Chieftain 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

Skandi Hav 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

CSV 20162014 2015

Firm contractChartered Option Under Construction

DOF ASAAlfabygget

5392 StorebøNORWAY

www.dof.no

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