Good morning, everybody, and welcome to Eidesvik Offshore ASA 's , our Q2 2025 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. Our cash balance is NOK 305 million, down from NOK 396 million at year end due to the newbuild investments, where we're financing the equity portion with cash on hand. In April, we were pleased to announce the declaration of the remaining option for 2026 from Subsea7 for the vessel Seven Beating. In addition, 2027 was added as a firm period and 2028 as a further option. 2027 and 2028 rates on the contract reflect the improvement in the market. We continue to progress on our two newbuild vessels. The first of them is scheduled to be delivered in the intersection between Q1 and Q2 next year, and the second at a similar time in 2027. As a subsequent event to this quarter, the Board of Directors has decided to distribute a dividend of NOK 0.30 per share. Total fleet utilization for the quarter was close to 98%. In the supply segment, utilization was 96% due to a scheduled repair on Viking Prince. For subsea and offshore renewables, utilization was close to 100% for the quarter. We're happy to report that we've continued a good trend this year with no LTIs. However, we continue to see an uptick in first aid incidents, hence, continued focus is needed to turn this trend around. Our contract backlog is now NOK 3.4 billion. This includes our share of the DIE with Subsea7. Renewable backlog continues to be steady, and we see interest in vessels that are capable of operating in both the subsea and the renewable market. It makes sense to consider this when evaluating investments. This also creates opportunity for increased utilization. Our total contract coverage is at the moment 100%. We currently have available capacity within the PSV space from Q1 next year, alternatively Q4 this year, depending a bit on some outstanding options. We are actively exploring new opportunities for vessels that will be available. We're confident in our capability in securing new activity. Our vessels are attractive in size, and we have a strong record in technical utilization and operational competence. We also look forward to continuing working with our customers and focusing on emission reduction. Our fleet, in combination with our organization, is well positioned to continue this work. Despite ongoing geopolitical uncertainties, oil demand continues to be steady and also expected to grow into 2026. Some of the major oil companies have signaled modest reduction in capex for 2025 and 2026, but leading EPC contractors continue to report strong backlogs and tendering activity in the subsea segment. Demand for platform supply vessels in the North Sea increased in Q2, accompanied by a rise in day rates. However, overall activity is somewhat subdued. Activity is expected to remain flat through 2025, with an uptick anticipated in 2026 and 2027. An uptick in operators securing offshore drilling rigs is noted. This is in line with the expectation of increased activity levels in 2026, 2027, and into 2028, as the major operators maintain their intention to address production decline. Within subsea and renewables, shipbuilders with available vessels continued to announce new fixtures, with the Brazilian market accounting for a significant share. Subsea activity is expected to remain high, and the current backlog is driving demand for suitable vessel tonnage. In the renewables market, the underlying market remains resilient despite some project cancellation. Now, over to Lars for the financials.
Thank you, Helga. Please note all numbers are in Norwegian kroner. Revenue in the second quarter of 2025 was NOK 198.5 million compared to NOK 197.8 million in the second quarter of 2024. Adjusted for other income in the quarter in 2024, revenue increased about 7% quarter -on -quarter, mainly due to non-main class renewals in this quarter, and hence a positive effect on utilization versus one main class renewal in Q2 2024. EBITDA was NOK 76.4 million compared to NOK 82.5 million in the same quarter in 2024. Adjusted for other income in Q2 2024, the adjusted EBITDA for that quarter was NOK 70.7 million. Personnel expenses in the quarter increased compared to the same quarter in 2024, mainly due to general salary adjustments, but also due to the need for use of expensive temporary personnel. Compared to the first quarter of 2025, freight revenue was on the same level in the second quarter. EBITDA increased by NOK 4.2 million due to a decrease in both personnel costs and in other operating costs. Joint ventures had a loss of NOK 0.7 million compared to a profit of NOK 3.2 million in Q2 2024. The 2024 numbers are affected by insurance proceeds received in the second quarter of 2024. The result of the JV is also affected by the same personnel cost increase as already mentioned. Operating result was NOK 29.1 million in the quarter compared to NOK 41.2 million in the same quarter in 2024. Adjusted for other income, operating result for Q2 2024 was NOK 29.4 million. Net financial items improved from -NOK 2 million to NOK 0.9 million quarter on quarter. Reduced financial expenses for Q2 2025 versus Q2 2024 are mainly due to increasing capitalized borrowing costs on the new builds, according to IAS 23. In addition, a positive currency effect, mainly related to the loan in U.S. dollar, resulted in an agio of NOK 2.3 million in the quarter compared to a disagio of NOK 1.1 million in the same quarter in 2024. Pre-tax result in Q2 2025 was NOK 30.1 million compared to NOK 39.2 million in the second quarter of 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 105.5 million compared to NOK 96.8 million in Q2 2024. This is mainly due to high utilization. EBITDA increased from NOK 36.2 million to NOK 40.5 million in the segment. The EBITDA margin increased from 37% to 38%. Utilization was 96% in Q2 2025 and 92% in Q2 2024. We own six vessels in this segment and in addition have management of two. For subsea and renewables, revenue had a minor increase from NOK 103.1 million to NOK 104 million quarter -on -quarter. These numbers include our consolidated numbers plus 50% of revenue from the vessel Seven Viking. EBITDA decreased from NOK 56.8 million to NOK 52.3 million. EBITDA margin is 50%, which is a decrease from 55% in Q2 2024. This decrease is mainly due to received insurance proceeds in the second quarter of 2024 in the JV. Utilization was solid at 100% compared to 99% in Q2 2024. We only partly own four vessels in the segment and have one under management. All vessels in these segments are on 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 newbuild vessel, which is currently being built at the Sefine yard in Turkey. Both newbuilds are treated as assets under construction. Our equity percentage is 62%, the same as at year end. This reflects our solid balance sheet. Net interest-bearing debt by the end of the quarter was NOK 525 million compared to NOK 499 million at year end last year. The increase is mainly due to payment of yard installment on the second newbuild. Net interest-bearing debt over adjusted EBITDA the last 12 months is 1.5. We are seeing a decrease in cash flow from operating activities for the first half of 2025 compared to the same period in 2024, from NOK 200 million to NOK 114 million. This is mainly driven by movement in the working capital. On the investment side, spending is mainly due to the investment in the second newbuild. Cash flow from finance is mainly due to payment of installments and interest offset by contribution from other interest in the second newbuild. Cash balance at the end of the period is NOK 305 million, and NOK 64 million of this is restricted. Now back to Helga for closing remarks.
Thank you, Lars. As a summary, we are highlighting the following. As always, strong utilization. We're having PSVs coming off legacy contracts in a long-term positive market, together with new builds coming into a strong subsea market. We're noticing an increased opportunity for vessels in adjacent markets. We have no main class renewals in 2025 and one in 2026, and we have proceeded with a dividend distribution. Over to Q&A.
Thank you, Helga. We have received so far three questions. First, Lars, will there be quarterly dividends going forward?
This is up to the Board of Directors. They have an authorization to give up to NOK 0.50 per share until the next annual general meeting. With the dividend announced today, the remaining authorization is NOK 0.20 per share.
Thank you, Lars. One for you, Helga. Are you concerned about the PSV rolling off term contracts in the next quarters?
I think that the market for PSVs is looking positive for 2025, 2026, into 2028. Also, all our PSVs are of an attractive size, and they also have capabilities like batteries and LNG for emission reduction. We're positive in our ability to renew contracts.
Thank you. The last one we have is how many options are left at Sefine Shipyard?
We have one option left at the yard, and we continue to explore opportunities, but we will not trigger the option unless we have, as before, a contract with the customer, a long-term contract with the customer.
Thank you.
That concludes our Q2 conference call. Thank you, everybody, for joining. Wish you all a nice day.