Good morning, everybody, and welcome to Eidesvik Offshore ASA's Q4 2025 presentation. Attending this webcast from our end is our CFO, Lars Tufteland Engelsen, and myself, CEO Helga Cotfgrove . 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 183 million in the quarter. This is down compared to the NOK 187 million in the same period last year, or in 2024. Our EBITDA was NOK 58 million, which is the same as the NOK 58 million in Q4 2024. The EBITDA margin was 31%. The decrease in revenue is due to the PSV Viking Queen operating in a weak spot market in the quarter. Lars will provide further details on the financials.
Consolidated backlog is NOK 3.2 billion, an increase of around NOK 600 million from Q4 2024. Equity ratio has been reduced from 62% to 58% since the year end 2024 due to the progress of our new builds. Our cash balance is NOK 340 million, down from NOK 396 million at year end 2024, due to the new build investments, where we are financing the equity portion with cash on hand. For the full year, we saw an increase in freight revenue of 3%, even with the PSV spot market showing poor performance in Q4. BP extended its contract for the PSV Viking Lady till end February 2027. They also have PSV Viking Prince for now till the end of this month, i.e., February 2026. We're having good discussions on further utilization for this vessel.
PSV Viking Princess was awarded a contract from February 2026, estimated to last for at least the rest of 2026 for new customers, DNO and Wellesley Petroleum. For our new build in Turkey, we continue to monitor their progress and work closely with the yard. Eidesvik is pleased to continue its progress with the Apollo project, retrofitting platform supply vessel Viking Energy to be able to operate with ammonia as fuel. This is a major rebuild made possible by Equinor and Eidesvik. Upon completion, Viking Energy will be the first offshore vessel with the ability to operate on ammonia and the first actual project in the industry, testing out ammonia as fuel for a vessel in normal operation. Eidesvik is leading the way in emission reduction. Subsequent to the quarter, Equinor extended a contract for the supply vessel Viking Avant till end May 2026, with further options.
The vessel has operated for Equinor for over 20 years. Utilization was lower than usual for Eidesvik due to platform supply vessel Viking Queen operating in the spot market for most of the quarter. This is reflected with supply delivering 88% utilization due to weakness in the spot market. We had no LTIs in the quarter. This leaves us with 1 LTI for the year, and this is one too many, as our goal is always zero. We commit to continue our focus and chase the zero LTI goal by continued focus and search for areas of improvement. Our contract backlog is close to NOK 3.2 billion. This includes our share of the JV with Subsea 7. We now have a slightly higher renewable percentage as backlog, as we have a lower backlog than historically for our PSVs.
We have a somewhat reduced contract coverage going forward. Viking Queen is currently on short-term hire in the spot market, and Viking Prince is, at the moment, scheduled to come off contract end of February. This will change as we secure new work for the vessels. The offshore support vessel market continued showing some short-term volatility in some segments and geographies, but still strong long-term fundamentals. The underlying positive drivers of offshore activity remains intact. Decrease in exploration wells and reductions in reserve replacement in recent year, combined with planned production targets from the operators going forward and solid demand, will continue to drive activity and investments. The spot market in the North Sea was oversupplied in the quarter, leading to rates below OpEx level and low utilization for vessel owners. A sizable number of vessels were idle.
There were also a limited number of requests for longer term charters, with the biggest customer renegotiating and extending its existing contracts. With few customers in the Norwegian part of the North Sea and fairly finite demand, there is currently limited need and very limited returns in the Norwegian spot market. Hence, it should be expected that ship owners might seek to move their available vessels elsewhere. Longer term, the market is expected to tighten due to expected increased activity. The EPC contractors continue to be slow, adding vessel capacity, while at the same time adding further backlog. Brazil continues to be a hotspot for subsea vessels, adding contracts for vessel providers. Although the rates have contracted slightly since peak, they continue to be attractive for owners.
Some of the tardiness in contracting vessels is most likely driven by the expectation that there will be available tonnage due to the new build schedule to enter the market. The increased activity in the market is expected to soak up this added capacity. The renewable market continues to be competitive, even with high activity, but with a positive sentiment long term. The subsea secondhand tonnage market continues to command high prices. over to Lars for the financials.
Thank you, Helga. Please note, all numbers are in Norwegian kroner. Revenue in Q4 was NOK 183.2 million, compared to NOK 186.8 million in Q4 2024. Revenue decreased about 2% quarter-on-quarter, mainly due to reduced utilization for the PSV Viking Queen operating in a weak spot market. EBITDA was NOK 57.6 million, compared to NOK 57.7 million in the same quarter in 2024. EBITDA this quarter was strongly affected by Viking Queen coming off firm contract and operating in a weak spot market, as already mentioned. Q4 2024 was affected by two main class renewals. Personal expenses in the quarter decreased compared to the same quarter in 2024, partly due to a positive development in sick leave and hence reduced use of expensive temporary personnel.
Other operating expenses in the quarter were flat compared to the same quarter in 2024. Compared to the third quarter of 2025, the low utilization due to the weak spot market is the main driver for the decrease in both freight revenue and EBITDA. Joint ventures had a loss of NOK 0.7 million, compared to a loss of NOK 0.3 million in Q4 2024. Operating result was NOK 9.4 million in the quarter, compared to NOK 10.4 million in the same quarter in 2024. Net financial items decreased from plus NOK 0.6 million to minus NOK 2.6 million quarter-on-quarter. Profit after taxes in Q4 was NOK 10.5 million, compared to NOK 11.3 million in Q4 2024. For 2025, freight revenue increased by 3%.
EBITDA, adjusted for other income, increased by 2% year-over-year, providing an EBITDA margin of 37% compared to 38% in 2024. The increase is mainly due to improvement in utilization for the subsea and renewable segment. If we take a look at our segments on the next page. In our supply segment, revenue quarter-over-quarter had a decrease to NOK 95 million, compared to NOK 108 million in Q4 2024. This is mainly due to lower utilization due to the Viking Queen operating in the spot market with low utilization. As a consequence, EBITDA decreased from NOK 39.5 million to NOK 26.3 million in the segment. The EBITDA margin decreased from 37% to 28%, and the utilization was 88%, compared to 94% in Q4 2024.
We own six vessels in this segment, and in addition, have management of two. For subsea and renewables, revenue increased from NOK 191.2 million to NOK 100 million quarter-on-quarter. The numbers here include our consolidated numbers, plus 50% of revenue from the vessel Seven Viking. EBITDA increased from NOK 41.6 million to NOK 48.2 million. EBITDA margin is 48%, which is an increase from 46% in Q4 2024. The increased revenue and EBITDA in this segment, quarter-on-quarter, are mainly due to utilization of 100%, compared to 92% in Q4 2024. 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 2024, mainly due to the investment in the two new build vessels, which is currently being built at Sefine Shipyard in Turkey. Both new builds are treated as asset under construction. Our equity percentage is 58%, compared to 62% at year end 2024, which reflects our strong balance sheet. Net interest bearing debt by the end of 2025 was NOK 967 million, compared to NOK 499 million at year end 2024. The increase is mainly due to payment of yard installment on the new builds. Net interest bearing debt over adjusted EBITDA the last 12 months is 3.1. The increase is due to drawdown of debt related to payment of yard installments in 2025.
2025 operating cash flow was NOK 300 million, compared to NOK 372 million for 2024. The reduction is mainly related to movement in the working capital. Cash flow from finance is mainly due to drawdown on the construction loans on both new builds and contribution from other interests in the second new build, offset by payment of dividend installments and interest. On the investment side, spending is mainly due to investment in the new builds. Cash balance at the end of the period is about NOK 340 million, NOK 59 million of this is restricted. Now back to Helga for closing remarks.
Thank you, Lars. As a summary, we are highlighting the following. Again, strong and as always, strong operational performance. We have continued positive market outlook. We have positive revenue and stable margins for the year. We continue our focus on profitable growth opportunities. Over to Q&A. Christopher?
Yes. Can you update on how many vessels are due for class renewal in 2026?
We have one vessel being in for for class renewal, and that's Viking Energy in relation with the Apollo project.
Yes, the next question: What is the plan to renew the aging PSV fleet?
That's the global PSV fleet is aging, and we wouldn't be doing any new builds unless we have a customer that is interesting on taking the vessel on a long-term charter. We are also in the market to see if there are some PSVs that are younger that we would be interested in acquiring a second-hand tonnage, but the price has to be right.
No further questions. Thank you.
Thank you, everybody, for joining our Q4 conference call. Wish you all a nice day.