Good morning and welcome to Eidesvik Offshore ASA's Q4 presentation. Attending this webcast from our end is our CFO, Helga Cotgrove, and myself. This presentation contains forward-looking statements, and we kindly ask you to carefully read the text on this disclaimer slide. I am pleased to report a solid financial quarter and the conclusion of a very good year for Eidesvik. In Q4, our revenue reached NOK 193.7 million, with EBITDA ending at NOK 74.6 million. Our revenue has steadily increased throughout the year while we have been able to maintain a firm grip on our cost base, the result of which is visible in our increased adjusted EBITDA margin at 38% for the quarter compared to adjusted EBITDA margin of 32% same quarter last year. This represents a 19% increase in revenue and a significant 41% growth in EBITDA margin.
Our consolidated backlog is close to NOK 1.975 billion, and our balance sheet key metrics are all very healthy, among the industry's healthiest, I would say. Over to business updates. In Q4 2023, we took advantage of increased interest in Eidesvik from several financial institutions and successfully refinanced the wholly owned fleet in the company at substantially better terms. We look forward to an exciting and constructive collaboration with Sparebanken Vest as a partner. Subsequently, we are pleased to report that we signed a three-year extension on our ship management agreement with our client, DEME, on the vessel Viking Neptun. The agreement includes a two-year option for further extensions. This is a testimony to our crew's ability to deliver our services in operation. Furthermore, Aker BP ASA declared an option to extend the contract for the supply vessel Viking Lady.
The contract extension runs from February 2025 in direct continuation of the current contract, extending the new firm period to February 2026. Lastly, we have entered into an agreement to build a new construction support vessel for delivery early 2026. The agreement includes call options for an additional four vessels in our favor. The vessel will be owned by an entity to be named Eidesvik Agalas AS, where Eidesvik will be the majority shareholder with 50.1%. The remaining shares will be owned by Northern Norway shipowners Agalas. Financing of this new build is a combination of equity from both shareholders and around 70% debt financing from SpareBank 1 Nord-Norge and Eksfin. The financing is non-recourse, and Eidesvik's share of equity will come from cash on hand. Upon delivery, the vessel will commence a three- to five-year time charter with Reach Subsea, and Eidesvik will have full management of the vessel.
This investment aligns with our strategic focus of providing sustainable, future-oriented shipping solutions and creating long-term partnership with our clients. By investing in a new build coupled with attractive options for an additional four vessels, we are strategically positioning ourselves for the future. We have now secured opportunities and capacity in two markets, subsea and offshore wind. Over to operational updates. Overall fleet utilization in fourth quarter was at 96%. Our PSV vessels delivered 100% utilization in the quarter, while our subsea and offshore wind vessel had a utilization of 90%. Full year 2023 fleet utilization ends at an average of 94%, which is a high utilization level. We maintain our vessels to the highest standard, and our utilization level quarter after quarter, year after year, is the best indicator of that.
Unfortunately, we experienced two lost-time incidents during the quarter, bringing the total number of LTIs for 2023 up to three. This is far from our target at zero LTIs and are not acceptable. The safety of our employees cannot be compromised, and we are committed to addressing this issue rigorously. Contract backlog. Our consolidated contract backlog is at NOK 1.975 billion. Worth noticing that 50% of this backlog was concluded in 2023, thus reflecting current favorable market conditions. We have a profitable backlog with recurring cash flows, well-balanced terms and conditions, with tier one clients in all operating segments. It is also a very diversified backlog servicing both oil and gas and the offshore wind markets. Currently, 30% of our backlog is within the growing offshore wind markets. Contract coverage, including joint ventures, is at NOK 2.100 billion, and the group divides its contract backlog into two segments.
Supply is reported standalone, while subsea offshore wind are reported as one segment. Over to market updates. The fundamentals in oil service and offshore wind are robust. Global E&P offshore spending is increasing. Rig activity remains high. We see record strong subsea EPC backlogs, and also utilization levels across several offshore segments are above 90%. The market indicators are positive across all our operating segments. In the supply market, while as expected, the PSV activity decreased somewhat during the winter months, but the number of vessels in operation increased compared to the same period last year. The supply and demand balance are favorable for vessel owners and continue to drive both rate levels and secondhand values. We foresee a strong PSV market for years to come. In the subsea market, the subsea entrepreneur companies experience solid order intake, record high backlogs, and solid tender activity.
We expect demand for subsea vessels to increase in all vessel categories the coming years, and the global subsea fleet is already experiencing high, actually above 80%, working utilization levels. The increase in demand for subsea vessels, in combination with the lack of capacity in the market, will drive needs for new builds. We reiterate our positive market outlook for the subsea market in a long-term perspective. In offshore wind, the main operators are still impacted by challenges in the supply chain, such as inflation impact and project delays. The year 2023 still came with some important highlights as FIDs, or Final Investment Decisions, reached an all-time high, and also governmental decision and dedication to escalate production of clean energy remains steadfast. Service operation vessels experienced a significant increase in awarded contract years compared to 2022, so our long-term outlook for this segment remains positive.
Then over to Helga for the financials.
Yeah, thank you, Gitte. Please note that all numbers are in Norwegian kroner. Revenue in Q4 was NOK 193.7 million compared to NOK 433.9 million in Q4 2022. Q4 2022 includes the sales gain from sale of vessel of NOK 269.7 million. Adjusted for this, revenue increased with NOK 29.5 million quarter-on-quarter, which is a 19% increase. Adjusted for the same sales gain, EBITDA improved NOK 21.6 million, up from NOK 53 million -NOK 74.6 million. This means an improvement on 41% quarter-on-quarter. Personnel expense in the quarter increased compared to 2022 due to salary adjustment, cost related to onshore headcount reduction, and crew cost for an additional vessel from December. We have reversed previous impairment on our consolidated vessels of NOK 76.9 million in the quarter due to continued improvement in market conditions. There was no reversal in Q4 2022.
Joint ventures had a gain of NOK 11 million compared to a loss of NOK 3.1 million due to reversal of previous impairment on the vessel Seven Viking . Operating results, or EBIT, was NOK 115 million in the quarter compared to NOK 279 million in Q4 2022. Q4 2022 includes a gain of NOK 269.7 million. Adjusted for gains and reversal of impairment, EBIT was NOK 38 million against NOK 9 million in Q4 2022, i.e., an improvement of NOK 29 million. Profit before taxes in Q4 was NOK 103.5 million compared to NOK 353.4 million in Q4 2022. Adjusted for reversal in impairment, sales gain, and currency, the profit before taxes was NOK 23.9 million against a loss of NOK 16 million Q4 2022. In supply, we had an increase in revenue from NOK 81.5 million in Q4 2022 to NOK 108.7 million in Q4 2023, an increase of more than 33% due to improvement in rates and increased utilization.
EBITDA went from NOK 22.8 million- NOK 47.1 million. The EBITDA margin improved from 28% to over 43%. We own six vessels in the segment and, in addition, have management of two. All our vessels are on long-term contracts. For subsea and offshore wind, revenue in the segment increased from NOK 86.2 million as adjusted for sales gain to NOK 89.7 million quarter on quarter. The numbers here include our consolidated numbers + 50% of revenue from Seven Viking . EBITDA is reduced from NOK 46.2 million- NOK 39.9 million. Margin is around 44%, which is a reduction from Q4 2022's 54%. The low margin is because of reduced utilization due to a technical issue on a vessel. We wholly or partly own four vessels in the segment and have one under management. All vessels in this segment are on long-term contracts.
Our fixed assets have increased from last year due to the addition of the vessel Viking Reach and the reversal of NOK 409 million in previous impairment. Our equity percentage is now at close to 60%, up from 40% last year, reflecting our strong balance sheet. Net interest-bearing debt by the end of the year was NOK 377 million compared to NOK 542 million at the end of 2022. We took advantage of improved interest from providers of third-party financing in the Eidesvik case and refinanced our debt in Q4, replacing our existing facility. This secured substantially better terms for the company. Our last 10 months' adjusted net interest-bearing debt over EBITDA is 1.4. We are seeing an improvement in cash flow from operating activities for the year for the quarter no, sorry, for the year of NOK 252.6 million compared to NOK 215 million last year.
On the investment side, spending is due to investment in the vessel Viking Reach and docking of two vessels, reduced by proceeds from the sale of four seismic vessels that was held for sale and was in layoff, and other equipment. On the financing side, we refinanced twice during the year, first time reducing our debt substantially and extending maturity, and second time to take advantage of an ability to improve overall terms. Cash balance at the end of the period is about NOK 499 million. It should be noted that around NOK 92 million of this is restricted. And now back to Gitte for closing remarks.
Thank you, Helga. Highlight summary. Also, this quarter, we had high fleet utilization and a strong financial performance. We have a fully booked backlog securing profitable cash flows years ahead. Our balance sheet key metrics amongst the industry healthiest, and we have positive market outlooks in all our operating segments. We have also taken measures to increase our capacity and capabilities in two markets and secured attractive growth possibilities for the company in the future energy mix. Then over to Q&A.
There are some questions coming in. The first one for you, Gitte. What could trigger an option of one additional construction vessel?
Attractive cash flows or attractive recurring cash flows and solid client counterparts.
Thank you. The next one I'm going to send to you, Helga. How much cash can be generated in 2024 given the current backlog and planned dockings?
We are not providing guidance for 2024.
Okay. Thank you, Helga. The next question. Does the new refinancing open up for dividend payments?
Yes. There was no restriction in the new financing agreement related to dividends.
Okay. Thank you, Helga. That concludes the list of questions.
Okay. Thank you. Thank you for attending, and we wish you all a nice day.