Good morning, everybody, and welcome to Eidesvik Offshore ASA's Q1 presentation. Attending this webcast from our end is our CFO, Lars Tufteland Engelsen, and myself, CEO Helga Cotgrove. We will address any questions submitted during the webcast at the end of the presentation. We kindly ask you to take note of the text on this disclaimer slide. We had freight revenues of NOK 999 million in the quarter. This is up 11% from the NOK 183 million for the same period last year and up from Q4's NOK 187 million. Our EBITDA was NOK 72 million compared to NOK 64 million in Q1 2024. The EBITDA margin was 36% compared to 35% in Q1 2024. The increase is due to increased utilization, quarter on quarter. The revenue and EBITDA are also our highest since 2017. Lars will provide further details on the financials.
Consolidated backlog is close to NOK 3.6 billion, an increase of close to NOK 800 million from year-end and also from Q1 last year. Our balance sheet continued to be very sound, with an equity ratio of 62% and NOK 570 million in net interest-bearing debt. Net interest-bearing debt has increased due to the progress of our two new builds. Our cash balance is NOK 285 million, down from NOK 396 million due to the new build investments, where we are financing the equity portion with cash on hand. The new builds are progressing well and are currently scheduled to be delivered on time. As you are aware, we contracted a new build subsea vessel with full IMR capabilities in 2024, which is scheduled for delivery early in 2026. In this quarter, we contracted an equivalent vessel at the Sefine Shipyard in Turkey.
The vessel is owned together with Agalas, our partner also in the first new build, and Reach Subsea, where Eidesvik and Agalas owns two-thirds of an entity controlled by Eidesvik. Upon completion, the vessel will go straight onto a charter for Reach Subsea. In April, as a subsequent event to the quarter, we were pleased to announce the declaration of the remaining option from Subsea7 for the vessel Seven Viking. In addition, 2027 was added as firm and 2028 as a further option. 2027 and 2028 rates in the contract reflect the improvement in the market. Total fleet utilization for the quarter was close to 100%. In the supply segment, utilization was 100% and the same for subsea and offshore renewables. We had no scheduled dockings in the quarter and have no class renewals for the rest of the year.
We're happy to report that we've had no LTIs so far this year. We continue our high focus on safety and explore different ways of ensuring that safety is at the forefront of everybody's mind. We've noticed an uptick in first aid incidents recently, confirming the need for continued focus. Our contract backlog is now NOK 3.6 billion. This includes our share of the JV with Subsea7. The increase in backlog is due to the new vessel currently being built and the renewal of the contract on Seven Viking. Renewable backlog is fairly steady, around in its 30s. We continue to see interest in vessels that are capable of operating in both these markets. Hence, it makes sense to consider this when evaluating investments. This also creates opportunity for increased utilization. Our total contract coverage continues to be high, but now reflecting replacement of several legacy contracts.
Further contracts will continue to be rolling off going forward, creating new opportunities. Although the global offshore activity continues to be positive, geopolitical movements not seen in recent history create an uncertain picture for the global economy, which makes it difficult to predict movements going forward. Large integrated oilfield service providers have in their Q1 reports indicated a reduction in upstream spending from 2024 to 2025, more so for onshore than offshore. The major EPC suppliers are currently remaining positive within the subsea market. The development in the oil price will be a key indicator for activity going forward in regards to potential cut in spending from the E&P companies. The supply vessel demand in the North Sea remained flat into Q1, driven by seasonal demand and level activity.
Demand is expected to increase in the coming months in the Norwegian sector of the North Sea when the new projects are now requiring drilling and rig activity is increasing. The major EPC contractors continue to see record backlog within the subsea space. The quarter saw continued high activity in vessel fixtures at improved rates. Demand for vessels is at an all-time high since 2009. This is also reflected in sales and purchase transactions on second-hand tonnage. Long-term demand is still expected to be positive when new vessels will have an advantage over older tonnage. The current order book for new builds is not expected to make a huge impact on forecasted utilization. The offshore renewable market has experienced some headwinds lately, but is currently still expected to move at a steady volume. Over to Lars for the financials.
Thank you, Helga. Please note all numbers are in Norwegian krone. Revenue in first quarter 2025 was NOK 198.8 million compared to NOK 183.4 million in first quarter 2024. Adjusted for other income in the quarter in 2024, revenue increased about 11% quarter on quarter, mainly due to non-main class renewal in this quarter and hence a positive effect on utilization versus one major main class renewal in Q1 2024. EBITDA was NOK 72.2 million compared to NOK 67.4 million in the same quarter in 2024. Adjusted for other income in Q1 2024, the adjusted EBITDA for that quarter was NOK 63.5 million. Personnel expenses in the quarter increased compared to same quarter in 2024 due to general salary adjustments and increased use of expensive temporary personnel due to high sick leave. For other operating expenses, price hikes, in particular from original equipment manufacturer suppliers, are continuing affecting technical cost and also docking when relevant.
Compared to fourth quarter 2024, the main driver for the increase in both freight revenue and EBITDA is the low utilization in Q4 due to the two main class renewals in the quarter. Joint ventures had a loss of NOK 2 million compared to a loss of NOK 1.6 million in Q1 2024. The increase in loss is due to the same comments as already mentioned. Operating result was NOK 22.5 million in the quarter compared to NOK 23.7 million in the same quarter in 2024. Adjusted for other income, operating result for Q1 2024 was NOK 19.8 million. Net financial items improved from minus NOK 12.5 million to plus NOK 6.8 million quarter on quarter. Reduced financial expenses for Q1 2025 versus Q1 2024 are mainly due to capitalized borrowing cost on the new builds according to IAS 23.
In addition, a positive currency effect mainly related to loans in US dollar and euro resulted in a gain of NOK 11.4 million in the quarter compared to a loss of NOK 6.8 million in the same quarter in 2024. Profit after taxes in Q1 was NOK 29.3 million compared to NOK 11.3 million in first quarter 2024. If we take a look at our segments on the next page, we see in our supply segment, revenue quarter on quarter had an increase to NOK 108.5 million compared to NOK 105 million in Q1 2024. This is mainly due to some rate adjustments. Increase in OpEx affected the EBITDA, which decreased from NOK 43 million to NOK 39.7 million in the segment. The EBITDA margin decreased from 41% to 37%. The utilization was solid 100% in both Q1 2025 and Q1 2024. We own six vessels in this segment, and in addition, we have management of two.
All our vessels are on long-term contracts. For subsea and renewables, revenue increased from NOK 86.2 million to NOK 102.3 million quarter on quarter. These numbers include our consolidated numbers plus 50% of revenue from the vessel Seven Viking. EBITDA increased from NOK 35 million to NOK 47 million. EBITDA margin is 46%, which is an increase from 41% in Q1 2024. The increased revenue and EBITDA in this segment quarter on quarter are mainly due to the improved utilization. Utilization was 100% compared to 89% in Q1 2024, where Subsea Viking was in for its 25-year main class renewal in Q1 2024. We only partly own four vessels in the segment and have one under management. All vessels in this segment are on long contracts.
On the next slide, we see that our fixed assets have increased from year-end 2024, mainly due to the investment in the second new build vessel, which is currently being built at Sefine Shipyard in Turkey. Both new builds are treated as asset under construction. Our equity percentage is 62%, the same as at year-end. This reflects a solid balance sheet. Net interest-bearing debt by the end of the quarter was NOK 570 million compared to NOK 499 million at year-end last year. The increase is mainly due to payment of yard installment on the second new build. Net interest-bearing debt or adjusted EBITDA the last 12 months is 1.7. We are seeing a decrease in cash flow from operating activities for the quarter, from NOK 75.1 million to NOK 41.9 million quarter on quarter. This is mainly driven by movement in working capital.
On the investment side, spending is mainly due to investment in the second new build. Cash flow from finance is mainly due to payment of installments and interest, offset by contribution from other interest in the second new build. Cash balance at the end of the period is about NOK 285 million, and NOK 63 million of this is restricted. Now back to Helga for closing remarks.
Thank you, Lars. The quarter can be summed up as the following. We have unsurpassed utilization. This is the Eidesvik trademark. We're starting to see vessels coming off legacy contracts. We're making good progress on new builds being delivered into a strong market. The market is in steady improvement, and we are well positioned for improved cash flow generation. Over to the Q&A.
I currently received two questions. The first one is, are there any dividends planned for 2025?
I can comment short on that. There are no planned dividends as of today. Eidesvik priority for the use of free cash flow is attractive investment opportunities. If there are non-search opportunities, then dividends will be considered.
Thank you, Lars. Second question is, what rate was achieved on Seven Viking?
Yeah, we can't share specific rates on the vessel, but what I can say is that it is a substantial improvement compared to the existing rate.
Thank you, Helga. That concludes the Q&A.
I would just like to say thank you to everybody for joining our Q1 conference call. We wish you all a nice day.