Good morning, everyone, and welcome to the first quarter presentation for Solstad Offshore ASA. This presentation will be held by Kjetil Ramstad, our CFO, and myself, Lars Peder Solstad, CEO of the company. If you have any questions, we will answer questions after the presentation, so please send in your questions in the chat. The main event in the quarter has, of course, been the sale of the 37 PSVs we have in the fleet, and that transaction is ongoing, or the preparation for it, and we expect still to close the deal in the second half of June.
Already now in the first quarter numbers, we have excluded the PSVs. Other than that, we are... Also very important, we see that we experience a very strong demand for our services, and the rates we achieve on some of the CSVs, especially, are on a historical high level. Taking a quick look at the disclaimer before we move on to the financial highlights, as mentioned, it has been a strong market and still is, and that is reflected in our numbers. I can already say now that we see that the market has further strengthened into second quarter.
In the first quarter, we had the revenue is up with about NOK 500 million compared to last year. EBITDA, more than NOK 400 million up, and EBITDA margin of 43% compared to around 20 a year ago is a big step ahead. The EBIT that came in on NOK 920 million is a strong number. Cash is a bit up, while assets and debt are down as a consequence of the PSV sale. Kjetil will take us through the numbers in more details on a later slide.
If we take a look at the business on the next slide, we signed the agreement to sell the PSVs to Tidewater in the quarter. On everything is en route to close the deal in June, as already mentioned. Seen from a financial standpoint, that sale will reduce our debt significantly, and by that, also strengthen our position for the upcoming 2024 refinancing.
From an, from an industrial angle, we sell the lowest margin business that also has 100% oil and gas exposure. We concentrate on the more high-end segment that also has higher margins and that are in very high demand from the market, and can work both in oil and gas and in renewable energy. As such, will be very relevant for the ongoing energy transition. It also gives us the opportunity to sell in other services on our vessels to our clients, like ROVs and and other project support. By that, we can add on revenue and margins on top of the of the of the more traditional time charter rates.
First quarter has been the best winter seasons for many years, with very high activity and utilization. We have seen vessels being fixed at record high rates, especially for the anchor handling project work and for longer and shorter contracts for CSVs. The experience we have now is that the rates we achieve, they are the same, either we work in oil and gas or we work in renewable energy. That is also how it should be, as the service we provide is more or less the same. As mentioned, the fleet we have now is very relevant for the ongoing energy transition, in first quarter, we had 27% of our EBITDA came from renewable energy, that is without having any vessels purpose-built for that market.
Looking at the market, or a closer look at the market on this slide, we see that there's a very, very strong supply-demand balance, or very tight supply-demand balance in the CSV segment. The demand is from both oil and gas and from offshore wind, and the tender activity is high. We see that the tenders that are in the market are from subsea contractors looking for more vessels to support their subsea project, but also to support renewable energy projects. We also see, what is very interesting is the mooring market that is going on all over the Atlantic Basin.
There's a lot of the demand, but also we on the availability side, that is quite limited, especially in the CSV segment, meaning that there's a tight market and that the rates are continuing to be on a very strong level. The good thing is that this market balance is not gonna change the coming years, which should give a strong market for our business for multiple years ahead, both in oil and gas and in offshore wind. We look at...
If we take a closer look on the anchor handling side of things, it's not only driven by the rig activity, but just as much from moving projects in U.S. Gulf, in West Africa, Guyana, Brazil, and elsewhere, which has a kind of a double effect as that brings vessels out of the North Sea. It leaves the North Sea with less vessels also bringing or leading to a tighter spot market in the North Sea and bringing the rate levels to higher level there as well. It has a double positive effect. I would like to show you just a few examples of contracts we have done so far this year.
On the anchor handling side, we have signed several project contracts for our, let's say, for our North Sea-based anchor handlers in West Africa, in the U.S. Gulf, and in the North Sea. We have done medium and longer term contracts for our anchor handlers in Australia and in Brazil. That has the market is very active. More on this, of the subsea side, we reported a letter of intent for the Normand Maximus for around 500 days of work, commencing early next year. That keep the vessel busy from now and/or from earlier this year and until summer 2025.
We also managed to sign a contract for the Normand Pacific, as long as seven years firm, with our long-term client, Prysmian. That takes us up to 2030 and on solid rates, and that is also within renewable energy. All in all, a lot of fixing activity, a lot of tendering activity, and a lot of opportunities for our anchor handlers and CSVs. Taking a look at the backlog, that is also reported, excluding the PSV fleet, still with firm and options, it's around NOK 11 billion. The majority is for execution within the next two years.
It's a strong backlog with healthy margins. We also see that the new contracts we are signing now are on higher levels, as such, margins will continue to improve going forward. Slightly below one on book-to-bill in the quarter. We see that what we have done after the quarter end already now means that we can already see that it will be above one again in second quarter. Backlog is one thing. Also it's interesting to have vessel with the spot exposure in a tight market.
The exposure we have in this year is linked mainly to five anchor handlers that we have operating in the North Sea and the Atlantic Basin mooring market. We also have a couple of CSVs that have some availability in the coming months, that we are bidding actively in the market now. Naturally, the further ahead we look, the mix of firm work and availability changes, but given our view on the market, this represents a great opportunity as we see it.
Kjetil, I hand it over to you to take us through the numbers in more details.
Thank you, thank you, Lars. Good morning to everyone. If we start with the income statement, and this is also reflecting the continued operations, excluding the PSV fleet, we had revenues of almost NOK 1.4 billion in the quarter, which is increase of 55% compared to last year. As you can see on the gain of sale, we have booked a gain of five or more than NOK 500 million , and it is mainly related to the sale of the CSV Normand Jarl. In the quarter, we reversed approximately NOK 150 million also of previous impairments.
That gives us operating result or EBIT of NOK 920. Also a net result before tax of approximately positive NOK 284. As we have touched upon, we have sold the PSV fleet that is now reflected as discontinued operations. As you see, we have booked a small gain of that segment of NOK 38 million. giving us adjusted EBITDA for the quarter of NOK 583, which is an increase of more than 200% compared to first quarter last year.
If you look at the distribution of the EBITDA, I'm glad to see that the anchor handling segment is improving well compared to last year. Also if you look at the distribution over the year, there is a strong first quarter on the anchor handling side. The CSV and subsea is stable but also a strong quarter. It's also glad to see that the renewable side of the business is generating more than NOK 150 million of EBITDA representing 27% of the total EBITDA for the group.
On the graph to the right side, on the bottom, is just showing the improved EBITDA margin, if when we exclude the PSVs from the numbers. Going over to the balance sheet, and please note that this is just a pro forma-based balance sheet for the continued operations. The balance sheet will reflect the sale in the balance sheet in the next quarter, when the transaction has been completed. But this is showing the pro forma numbers.
Basically, what we have done here, we have adjusted the fixed assets and, as you see, it's a decrease in the fixed assets compared to last year. We have also adjusted for the debt. Also you see that the debt has changed from long term to short term because of the maturity date is coming up. We have then excluded more than NOK 6 billion from the debt side because of the transactions. Also, the equity is affected by the transaction, but that also is a pro forma number.
In first quarter, it would have given an effect of approximately NOK 250 million on equity, taking it up to approximately NOK 2 billion. Cash is still on a stable level, NOK 2.2 billion, a little bit up from last year and year-end, which is good in a hectic docking period. That is good to see. Looking at the equity movement, we see that we started last year, same period at NOK 2.7 billion of equity.
Then, as we know, we have a large unrealized currency effect in on our numbers of almost NOK 2 billion. Taking down the equity. And then, of course, you also see the potential gain from the PSV sale of 259 million, taking the equity back to almost NOK 2 billion. Again, that the final effect will be reflected in the next quarter. Little bit the same picture on the long-term debt. Last quarter, we started at the debt was approximately NOK 20 billion.
We have done some repayments, and also both on long-term debt and leasing. We modified the leasing for Normand Maximus in the period. As you see, there is a huge currency effect on the debt as well. As you know, the 70% of our debt is in USD, so that gives an effect of $2.6 billion. The effect on the PSV sale, as mentioned before, more than $6 billion, taking the long-term debt down to 17 billion at the end of the quarter, first quarter.
If we go to refinancing and debt structure, as mentioned, we have a refinancing coming up less than a year from now, first quarter 2024. If you start with where we are, the diagrams here shows reflects the debt, first quarter 2024. That means that we have the NOK 23 billion of debt in the group, which yeah, 10% will be repaid during the next 12 months. If we exclude the PSVs, we have a debt of approximately NOK 17 billion.
The debt majority that will be refinanced in first quarter 2024 is the NOK 13.2 billion, which then consists of the NOK 11 billion of fleet loan. Residual claim of the former bareboat of Normand Maximus of NOK 2 billion, and then a small loan of NOK 250 million on Superior Group. That is what we are going to refinancing when in first quarter 2024. The refinance plus discussions has been initiated with the secure lenders. We have engaged advisors to assist us in this process going forward.
With that, I would hand back, well, back to you, Lars, to wrap up.
Thanks, Kjetil. To summarize, the closing of the PSV transaction is on plan and will be done by the second part of this month. This is a very important step for us to, as we will have our debt significantly reduced and put ourself in a better position for the upcoming refinancing. In addition, the remaining fleet of around 40 vessels will all be relevant for the ongoing energy transition. As we see it, the CSV and the anchor handling segments are also the segments that we expect will perform strongest going forward. We have had a very strong winter season, quarter, with high utilization and with improving rates.
We see that as also continuing into the second quarter and beyond. Especially the anchor handling segment has had a large improvement compared to what we have in first quarter last year. We also experienced that the effect of the contracts signed the last six to 12 months are now being reflected in the numbers. As we see it, both oil and gas and renewable energy markets will develop strongly going forward, and that should be favorable for a company with high end offshore tonnage like Solstad. Thanks for listening in. This concludes our presentation, and now we are moving over to Q&A.
Okay, then we have some questions. The first one: How do you see the outlook for the spot project anchor handling fleet based in the North Sea? Is there still project work available for these high-end vessels?
The short version is that, we expect that to develop strongly. We see that we are bidding on several, projects. We have already vessels working on projects, and there are more to come. That is looking very promising. As I also said in the presentation, it has a double effect because it brings vessels out of the North Sea on, high rates, and it leaves the North Sea with less vessels for the spot market, bringing the, also the spot rates, to higher levels. That is very positive.
The next question. Brazil is seeing increased activity and demand, but still not taking international anchor handlers tonnage from the North Sea. Do you expect to see this?
I think the what we, well, we have seen that there are a few, let's say, medium-sized anchor handlers from the North Sea, being fixed in Brazil. I, we have sold a few to Brazilian operators for Brazil work. What we think will be, there will be at least mooring projects coming up for the anchor handling tonnage. That, and that is a bit of a change in the Brazilian market, where the subsea contractors are also responsible for the mooring of the FPSOs.
While back in the days, Petrobras had those vessels on long-term contracts and had that issued to the mooring on behalf of the subsea contractors back then. I think we will see a combination, more mooring work coming up, and probably also tenders for larger anchor handlers, if not this year, at least a bit ahead.
Thank you. The next question is: You recently announced the seven-year contract. Would such a contract length support full repayment of the vessel debt during the firm period?
Yeah.
Yeah. Mm. let me see. next question is, looks like the Normand Sentinel has returned early from Mexico. Being a large and important vessels, can you update on outlook, for new work?
Yeah, that's right. We decided jointly with our Mexican client that we take the vessel out of the Mexican market and we work on a more sort of approaching the North Sea, or not necessarily North Sea, but the global more project market. Now we are on a U,K. project. We have a profit split agreement with our Mexican clients, and now working within offshore wind and bidding. That's a two-month project or so. It's either go back to Mexico or we are bidding for other work in this part of the world.
It's in close cooperation with the Mexican client, but giving us a higher rate than we originally had in Mexico.
Thank you. Another question. A couple of rigs from Norway will relocate to new contracts in Australia, which is a large market for Solstad. How is the outlook for additional vessels in Australia?
I think, I mean, you're right, the vessels are or rigs are moving out of the North Sea, but they still need the vessel capacity. Those are, who are in Australia will, of course, be positive for the demand in that part of the world. We have, we have after the PSV transaction, we will have three anchor handlers left in Australia. They are working on a short, some on short or some on longer contracts, but I mean, the demand for that type of vessels will definitely go up with two or three more rigs coming in, so that's gonna be positive for the term market there.
Let me see. I think that concludes the questions. Let me just give it a minute and see if there's anything else coming in. Nope. That concludes the numbers of questions. Thanks.
Yeah. Thanks a lot for listening in. Thank you very much.
Thank you.