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 202 million in the quarter. This is relatively flat compared to the NOK 204 million for the same period last year. Our EBITDA was NOK 85 million, which is down from NOK 88 million in Q3 2025. The EBITDA margin was 42%. Lars will provide further details on the financials. Consolidated backlog is around NOK 2.8 billion, down from NOK 3.3 billion last year, mainly due to the sale of Viking Reach. As previously announced, we entered into an agreement to sell IMR vessel Viking Reach in the quarter. The vessel was delivered to its new owner on October 26th.
The sale is a bit sentimental for me personally, as Viking Reach was the first vessel we acquired after I joined Eidesvik. At the same time, the transaction demonstrates the value created through disciplined investment, strong commercial performance, and active portfolio management. Subsequent to the quarter, we are pleased to announce a long-term contract for PSV Viking Queen, securing utilization for most of 2027, and also for Viking Avant for the same. Both are rates reflecting an improved market. These awards demonstrate the continued execution of our strategy to secure long-term employment for our fleet. We continue to deliver strong utilization. The 95% utilization in supply reflects Viking Queen operating in the spot market. Our technical uptime in the quarter was 100%. We had zero LTIs in the quarter but have unfortunately had two LTIs after quarter end. This brings the number to four this year, which is unacceptable.
There is always time to do the work safe. We are looking at ways to improve and how to avoid further incidents. Our Apollo project, which is fitting dual-fuel ammonia engine on PSV Viking Energy, is progressing well. Our first newbuild, to be named Viking Vigor, is expected to be delivered in Q1 2027. As mentioned, our contract backlog is around NOK 2.8 billion. We are making good progress in securing long-term utilization for our vessels coming off contract early 2027, with recent awards for Queen and Avant.
The backlog is lower than we have seen historically due to several vessels coming off long-term engagements and the sale of Viking Reach. We have some capacity left in 2027, which is considered positive the way the market is developing. The ongoing conflict in the Middle East continued to influence the energy markets. Both oil prices and refined products continue their upward trend.
The geopolitical landscape and positioning between the main players are confirming the focus and need for diversified and more resilient energy supply that the market is adopting to. Reserve replacement and the need to sustain offshore production remain important priorities for the major operators, with several companies signaling increased exploration activity. This continued to support offshore investment and the longer-term demand outlook for offshore vessels. The PSV spot market remained volatile during the quarter, with a slow July followed by strong activity in August and September. The Norwegian spot market has become increasingly limited, reinforcing our view that term contracts and alternative geographic markets provide a more attractive risk-return profile. The second half of 2026 is proving more transitional than initially anticipated. We are, however, now seeing that quality tonnage is being firmed up at improved rates for 2027 and beyond.
Within subsea and offshore renewable, strong underlying fundamentals coupled with a continued record-high subsea backlog for the main subsea suppliers indicate a strong market going forward. At the same time, the supply side is increasing with several new high-specification vessels under construction, which will enter the market from 2027 and onwards. The time charter rates continue to stay at sound levels for vessel owners. Although at a bit of an impasse at the moment, the record-high EPC backlog combined with the pipeline of subsea opportunities and growing IMR requirements are likely to drive an increase in vessel contracting going forward. Although some market reports indicate a muted offshore renewable market, activity among the European players remain robust and is contributing to a strong sale and purchase value for older subsea tonnage.
The delay in new build deliveries is assisting in keeping rates at attractive levels, in particular in the project market, although some availability is expected in the winter period. Now to Lars for the financials.
Thank you, Helga. Please note all numbers are in Norwegian kroner. Revenue in the third quarter 2026 was NOK 202 million compared to NOK 205 million in the third quarter 2025. The decrease quarter-on-quarter is mainly due to lower reported revenue from two vessels with revenue denominated in foreign currencies and lower utilization of one supply vessel operating in the spot market. EBITDA was NOK 85 million compared to NOK 88 million in the same quarter in 2025. Personnel expenses in the quarter increased compared to the same quarter in 2025, mainly driven by general salary increase, in addition to higher travel expenses and increased costs due to changes in operation area for some of the vessels. Other operating expenses decreased by 19% compared to third quarter last year. This decrease was mainly due to lower costs related to unplanned repairs and some periodical movements on planned technical cost.
Compared to second quarter 2026, freight revenue decreased around NOK 2 million, mainly due to lower average day rates. EBITDA increased NOK 14 million due to a decrease in operating expenses. Joint ventures had a profit of NOK 1.3 million compared to NOK 0.2 million in third quarter 2025, mainly due to improved day rate. Operating result was NOK 45 million in the quarter compared to NOK 41 million in the same quarter in 2025. Net financial income were NOK 21 million compared to NOK 4 million quarter-on-quarter, mainly due to a positive currency impact related to the loans in US dollar and euro. Pre-tax result in third quarter was NOK 67 million compared to NOK 45 million in third quarter 2025. For year-to-date 2026, freight revenue decreased by 2% compared to same period last year. This is mainly due to the weak spot market in Q1 this year.
EBITDA decreased by 9%, providing an EBITDA margin of 36% compared to 39% for the same period last year. We see in our supply segment, revenue quarter-on-quarter was stable around NOK 113 million. This is a combination of improved day rates and lower utilization. EBITDA decreased due to increased cost from NOK 48 million -NOK 46 million, and the EBITDA margin decreased from 43% - 41%. The utilization was 95% this quarter and 100% in the third quarter in 2025. We own six vessels in this segment and, in addition, have management of two. For subsea and renewables, the revenue quarter-on-quarter remained stable also for this segment, around NOK 104 million. Lower income reported from two vessels with revenue denominated in foreign currency was offset by higher income from the JV vessel, as these numbers include our consolidated numbers + 50% of revenue from the vessel Seven Viking.
EBITDA increased from NOK 48 million to NOK 50 million. EBITDA margin increased from 36% - 48%. Utilization was 100%, the same as in Q3 2025. We wholly or partly own four vessels in this segment and had two under management during the quarter. As mentioned earlier, the vessel Viking Reach was delivered to new owners in October, reducing owned vessel to three vessels from late October. Our assets have increased from year-end 2025, mainly due to investments in the two newbuilds under construction. Per Q3 2026, the vessel Viking Reach was classified as asset held for sale, and the corresponding debt was classified as liabilities related to asset held for sale. The equity percentage is 58%, the same as year-end 2025. This reflects our solid balance sheet. Net interest-bearing debt by the end of the quarter was NOK 1.1 billion compared to NOK 967 million at year-end last year.
The increase is mainly due to drawdown on construction loan during the quarter. Net interest-bearing debt over adjusted EBITDA the last 12 months is 3.8. Operating cash flow year-to-date is NOK 193 million compared to NOK 198 million for the same period last year. Both periods were affected by movement in the working capital. On the investment side, spending is mainly due to investment in the newbuilds. Cash flow from finance is mainly due to new debt related to newbuilds, offset by payment of installments, interests, and dividends. Cash balance at the end of the period is about NOK 311 million. NOK 81 million of this is restricted. Now back to Helga for closing remarks.
As a summary, we are highlighting the following from the quarter. We have stable revenue and EBITDA margin. We have strong operational performance. Viking Reach sold with solid return. We continue to add backlog at improved rates, and we continue to explore growth and fleet renewal. Then over to Q&A.
Thank you, Helga. Could you elaborate on the expected revenues on Viking Queen in Q4 2026 and the following quarters?
Yes. As I mentioned, Viking Queen is operating in the spot market, and the spot market in the Norwegian sector has been fairly volatile, with some months the market being sold out. Other months, there might be several vessels available. For Q4, for example, October so far has been slow. We are moving into the winter season, so we expect a fairly muted market for the rest of the year. Then from Q1, the vessel is going on contract, a firm contract. We expect start in January, and then she will be on a contract for at least the rest of 2027.
Thank you. How do you plan to distribute or use the gain on sale after Viking Reach?
Well, Eidesvik's priority for the use of free cash flow is attractive investment opportunities, and if there are no such opportunities near term, then dividends is considered.
Thank you. Do you prioritize growth in the subsea segment or the PSV segment?
I mean, I think we will say it depends. We explore both opportunities, so we evaluate what makes the most sense on a case-to-case basis.
You highlighted record high subsea contractor backlog, but at the same time, contractors appear relatively slow to commit additional vessel capacity. Could you give us some more color on how you expect the market to absorb the new builds entering the fleet from 2027, and what this could mean for rates and utilization going forward?
I mean, in our view, there is capacity over time in the market to absorb these new builds, particularly if you combine it with the record high backlog, the continued increased work that needs to be done, subsea and offshore. So even though there might be a slight movement in between supply and demand, over time, our view is that these new builds will be absorbed. We are not expecting a major hit on the rates.
Next question we received is, what is the debt amount related to current fleet after sale of Viking Reach?
Well, the debt of Viking Reach is classified on a separate line as liabilities related to asset held for sale, approximately NOK 55 million. Related to the rest of our fleet, please see in appendix two in our quarter report, where it is quite detailed on the installment schedule. You will find detailed information in appendix two to the report.
Thank you. Last question received. On Viking Vigor, do you see any risk of further delays to the revised delivery schedule?
I mean, it is difficult to say, particularly since we have had quite a lot of delays on the vessel. At the moment, we are making good progress, or the yard is making good progress. We are thinking that the new schedule is definitely doable.
Thank you.
That was the end of our Q3 conference call. Thank you, everybody, for joining. I wish you all a nice day.