Good morning, and welcome to Eidesvik Offshore ASA's Q2 presentation. Attending this webcast is our Chief Financial Officer, Helga Kotbø, and myself, Gitte Gard Talmo. This presentation contains forward-looking statements. We kindly ask you to carefully read the text on this disclaimer slide. Stable performance and operational delivery have been the defining characteristics of Eidesvik second quarter of 2024. Our freight revenue reached NOK 186 million, slightly above the same period last year. Underlying operations delivered an adjusted EBITDA of NOK 70 million. Also, this broadly in line with last year, with the adjusted EBITDA margin ending at 38% for the quarter, compared to 39% last year.
Consolidated backlog continues to grow and is now at NOK 2.95 billion year to date, an increase of close to NOK 1 billion compared to the same quarter last year, and this is the highest level in nine years. Our balance sheet remains strong and healthy, with an increase in assets and a decrease in cash due to our investment in our IMR newbuild announced last quarter. With a net interest-bearing debt over EBITDA multiple of one, improved from 1.4, it's safe to say that Eidesvik has a very manageable debt level over our recurring cash flow. With an equity ratio of 61%, the Eidesvik key financial indicators remained very strong. Business update. During the quarter, we signed a yard supervision agreement with the Northern Norway shipowner, Agalas.
We will support them in the construction and delivery of their cable installation vessel, currently under construction at Sefine Shipyard in Turkey. We are now engaged in the follow-up of two new build projects, and this is a good example of how we capitalize on our competence as a fully integrated shipowning company. Subsequently, Equinor Energy AS declared options to extend the contract for the supply vessel, Viking Energy. The contract extension runs from April 2025 to April 2030. The contract also includes options for further extensions. Viking Energy has been in continuous operations for Equinor since our launch in 2003. This contract is a very good example of how we work, building long-term clients partnership and seeking long-term contracts. The operational services delivered by our crew over decades from this vessel is one to be proud of. Yesterday was a big day for Eidesvik.
As a subsequent event, we announced the realization of our Apollo project. In collaboration with key partners, Equinor and Wärtsilä, we will convert our PSV, Viking Energy, to operate with an ammonia combustion engine. Conversion to ammonia operation is planned for the first half of twenty twenty-six, making Viking Energy the world's first offshore vessel to adopt this fuel as a primary energy source in a combustion engine. The project has been granted EUR 5 million in support from EU, and in addition to chartering the vessel, Equinor also contributes with financing of the conversion. We are proud to deliver on our environmental strategy and spearhead yet another world-first initiative within green shipping. This project is made possible through the commitment of resources across our organization, who have invested countless of hours of hard work.
The realization of Apollo does not only confirm our position as pioneer within the demonstration of new fuels and solutions to reduce emissions, but also supports our strategy of prolonging the lifetime of existing vessels to a new technology. Viking Energy has now secured operations for Equinor until 2030. Operational update. Planned vessel maintenance affected fleet utilization in our PSV segment this quarter, taking it down to 92%, while our subsea and offshore wind fleet delivered 99% utilization during the quarter. Fleet utilization ended at 95% for all segments combined. During the quarter, our vessel, Viking Lady, undertook a fifteen-year classing, and we performed environmental upgrades on the vessel. Unfortunately, the company recorded one lost time injury, following a zero LTI record in Q1. This serves as a reminder of the importance of maintaining the highest safety standards across all our operations.
Our consolidated contract backlog is now at NOK 2.95 billion. Yet again, we have been able to book considerable new backlog on the backdrop of a fully booked legacy fleet. Our clients repetitively concluding long-term charters on tonnage already in their service, confirms our ability to deliver our services in operation. It also shows our ability to utilize new technology to increase our fleet's market attractiveness, as well as prolong our vessels' lifetime. Our clients have environmental footprint from vessel operations on the agenda, and our dedication and expertise in utilizing new technology to reduce emissions from our operations is a competitive advantage and a strong contributor in our backlog building. A recent announced project, Apollo, stands as an example of just that. Our backlog is one to be reckoned with.
Tier one clients, balanced terms and conditions, which is increasingly important in a volatile global picture, spot market and profit-sharing mechanisms ensuring future upside while maintaining downside protection, and finally, its predictable and very long horizon. This backlog provides us with the possibility to review further growth opportunities. Our balanced focus on our three strategic operating segments, subsea, Offshore Supply, and Offshore Wind, are also reflected in our backlog, with 66% of the backlog from our traditional oil and gas market and 34% of our backlog within offshore wind. Total contract coverage, including joint venture, is above NOK 3 billion. The group divides its contract backlog in two segments. Supply is reported standalone, while subsea, Offshore Wind are reported as one segment. Market update. The current geopolitical picture impacts global markets and increased equity markets volatility.
The fundamental drivers in the segment we serve remain positive, with increased offshore spending and a solid demand outlook. Multiple large merger and acquisition transactions, as well as high volume of single asset acquisitions at robust prices, have been concluded during the year. In the PSV market, rate and utilization levels in the North Sea term market have seen a steady increase year on year. A 15% increase in rate levels year to date compared to last year reflects a tight market, driven by supply limitations rather than demand increase. The continued attractive rate levels and expected increase in demand in the coming years have resulted in placement of the first PSV newbuild orders in over a decade.
The subsea market remains vibrant, with strong commercial dynamics, record high backlog building year to date, a strong tender pipeline ahead, healthy and increasing margins, and a solid free cash flow is the situation for the tier one subsea companies. Demand outlook is robust, while supply has had a decrease in global subsea fleet during the last decade. The favorable market conditions have resulted in several newbuild orders, some on speculation, reflecting asset owners' belief in a long-term upcycle. Fundamentals in the offshore wind space also remains positive. Funding investment decisions are at a healthy level, and both rate and utilization levels for tier one vessels exceed previous years. The number of vessel years concluded year to date also exceeds previous years. There is a strong pipeline of future offshore wind farms coming, driven by political gigawatt targets in multiple regions. Our long-term outlook for offshore wind remains positive.
Then over to Helga for financials.
Thank you, Gitte. Please note, all numbers are in Norwegian kroner. Revenue in Q2 was NOK 197.8 million, compared to NOK 240.5 million in Q2 2023. Adjusted for gain on sale and other income, freight revenue increased about 1% quarter on quarter. EBITDA was NOK 82.5 million, compared to NOK 128.7 million in 2023. If we adjust for the same sales gain and other income, EBITDA was NOK 70.7 million, compared to NOK 72.6 million in Q2 2023. Personnel expenses in the quarter increased compared to 2023 due to general salary adjustments. Other operating expenses increased slightly due to increased spend on maintenance costs. Joint ventures had a profit of NOK 3.2 million, compared to a loss of NOK 2.9 million in Q2 2023.
The improvement is due to improved day rate and receipt of insurance proceeds. Operating results, or EBIT, was NOK 41.3 million in the quarter, compared to NOK 418.1 million in Q2 2023. In Q2 2023, we had a reversal of previous impairment of NOK 332 million. If we adjust for this reversal and the previously mentioned sales gains and other income, adjusted EBIT was NOK 29.4 million against NOK 29.9 million in 2023. Financial items reduced from NOK -10.6 million to NOK -6.5 million quarter on quarter. The reduction is due to reduced interest costs and receipt of previously impaired receivable. Profit after taxes in Q2 was NOK 34.4 million, compared to NOK 407.5 million in Q2 2023.
Q2 2023 is affected by the previously mentioned reversal of impairment of NOK 332 million. In our supply segment, revenue quarter on quarter was flat, with NOK 96.8 million, against NOK 96.4 million in Q2 2023. Although day rates in the segment increased, reduced utilization due to Viking Lady being off hire for close to 50% of the quarter because of class renewal and several upgrades, led to flat revenue and reduced EBITDA. EBITDA went from NOK 39.4 million to NOK 36.2 million in the segment. The EBITDA margin decreased from 41% to 37%. Utilization was 92% in the quarter, two percentage points lower than Q2 2023. We own six vessels in this segment, and in addition, have management of two. All our vessels are on long-term contracts.
For subsea and offshore wind, revenue increased from NOK 94.4 million to NOK 103.2 million quarter on quarter. The numbers here include our consolidated numbers, plus 50% of revenue from the vessel Seven Viking. EBITDA increased from NOK 50.1 million to NOK 56.8 million. EBITDA margin is 55%, which is an increase from Q2 2023's 53%. The increased revenue and EBITDA are due to receive insurance proceeds and improved day rates in the subsea space. We wholly or partly own four vessels in the segment and have one under management. All vessels in this segment are on long contract. Our fixed assets have increased from end last year, mainly due to the investment in a new build vessel, which is currently being built at Sefine Shipyard in Turkey, which is treated as asset under construction.
Our equity percentage is 61%, compared to 59.5% at year-end, which reflects our strong balance sheet. Net interest-bearing debt by the end of the quarter was NOK 378 million, which is the same as year-end. Our last twelve months adjusted net interest bearing debt over EBITDA is one. We are seeing an improvement in cash flow from operating activities. Year to date, operating cash flow is above NOK 200 million, versus around NOK 100 million for the same period last year. This is driven by the addition of the vessel Viking Reach, but also improved working capital and increased rate. On the investment side, spending is due to yard stays and investment in the new build. We paid dividend to our shareholders in the quarter of NOK 18.3 million, based on 2023 financials.
It should be noted that both dividend and the investment in new build has been sourced by cash on hand. Cash balance at the end of the period is about NOK 444 million, NOK 91.5 million of this is restricted. And now back to Gitte for closing remarks.
Thank you, Helga. We have continued solid operational and financial performance. We have a strong backlog providing us with the opportunity to capitalize on improving market conditions in the coming year. Our balance sheet remains strong, the same is the case for our key financial indicators. The market outlook for all our operating segment remains positive, and we are positioned for future growth. Then over to Q&A.
Thank you, Gitte. The first question from the updated backlog, it implies Viking Energy day rate is far below current market rates. Could you explain, Gitte?
The Viking Energy extension is a combination with Project Apollo, and it is therefore more—it's a much more complex picture than a comparison quarter on quarter to quarter.
Thank you. The next question: While not impacting the Eidesvik PSV fleet on long-term contracts, how do you read and explain the very weak spot PSV market in both Norway and U.K. this summer?
Spot market is volatile by nature. It's ad hoc work. So yeah, it's less activity, less ad hoc work for the main operators in both U.K. and Norwegian Continental Shelf, making it a tough and rough summer for the PSV spot fleet, and again, yes, correct, not impacting Eidesvik.
Thank you. Can you update on the appetite in the market for additional new builds with long-term contract in place?
For Eidesvik, we have options on our new build, currently under construction at Sefine Shipyard. So the appetite on Eidesvik for new builds towards long-term contracts is definitely present, I would say. But as also reported to the market before, we would like to see long-term contracts before pushing the button on further new builds.
Thank you. That concludes the list of questions.
Okay, and then thank you all for taking the time to join our Q2 conference call, and we wish you all a nice day.