q3 2018 - dof group

Q3 2018 DOF ASA Financial Report

Management reporting: Accounts 3rd quarter 2018

(MNOK) Q3 2018 Q3 2017 Acc Q3 2018 Acc Q3 2017 2017

Operating income 1 739 1 801 5 233 5 380 7 376 Operating expenses -1 199 -1 231 -3 654 -3 698 -5 076 Net profit from associated and joint ventures -6 -8 -7 -5 -15 Net gain on sale of tangible assets - - 1 -1 2 Operating profit before depreciation and impairment - EBITDA 535 562 1 574 1 676 2 287 Depreciation -305 -291 -902 -860 -1 145 Impairment -124 -395 -397 -981 -1 322 Operating profit - EBIT 106 -124 275 -165 -180 Financial income 11 3 26 41 51 Financial costs -292 -257 -791 -797 -1 118 Net realised gain/loss on currencies -118 4 -223 -168 -227 Profit before unrealised finance costs -293 -374 -713 -1 089 -1 474 Unrealised finance costs 10 359 -65 627 363 Profit (loss) before taxes -283 -16 -778 -462 -1 111 Taxes 13 -10 49 -40 -244 Profit (loss) -269 -26 -728 -502 -1 355

(MNOK) Q3 2018 Q3 2017 Acc Q3 2018 Acc Q3 2017 2017

Net cash from operation activities 117 203 682 669 1 150 Net cash from investing activities -119 -171 -1 223 -1 133 -1 292 Net cash from financing activities -312 -206 -104 232 218 Net changes in cash and cash equivalents -313 -174 -645 -232 76

Cash and cash equivalents at start of the period 2 062 2 297 2 434 2 370 2 370 Exchange gain/loss on cash and cash equivalents - 14 -40 -1 -12 Cash and cash equivalents at the end of the period 1 750 2 137 1 750 2 137 2 434

(MNOK) 30.09.2018 30.09.2017 31.12.2017

ASSETSTangible assets 24 615 26 099 25 793Goodwill 317 320 324Deferred taxes 945 898 779Investment in associated companies and joint ventures 77 75 71Other non-current financial assets 198 587 635Total non-current assets 26 152 27 979 27 604Receivables 2 175 2 233 2 165Cash and cash equivalents 1 750 2 137 2 434Total current assets 3 925 4 370 4 599Total assets 30 076 32 348 32 203

EQUITY AND LIABILITIESEquity 6 264 7 688 7 342Non-current liabilities 18 648 20 317 20 769Current liabilities 5 165 4 343 4 092Total liabilities 23 812 24 661 24 861Total equity and liabilities 30 076 32 348 32 203

Net interest bearing liabilities 20 418 20 824 20 550

RESULT

BALANCE

CASH FLOW

Index

Financial report 3rd Quarter 2018 4

Accounts Q3 2018 8

Consolidated income statement 8

Consolidated statement of financial position 9

Consolidated statement of equity 10

Consolidated statement of cashflow 11

Notes to the Accounts 12

Note 1 General 12

Note 2 Management reporting 14

Note 3 Segment information 15

Note 4 Operating income 15

Note 5 Hedges 16

Note 6 Tangible assets 16

Note 7 Investment in associated and joint ventures 17

Note 8 Cash and cash equivalent 17

Note 9 Interest bearing liabilities 18

Note 10 Subsequent events 19

Note 11 Transaction with related parties 20

Note 12 Taxes 20

Note 13 New standard and interpretation not yet adopted 20

Note 14 Share capital and shareholders 22

Note 15 Performance measurements definitions 23

financial report Q3 2018 dof asa4

KEY INFORMATIONGroup EBITDA (management reporting) of NOK 587 million

Fleet utilisation of 77% • 75% subsea fleet, 69% AHTS fleet and 90% PSV fleet, 5 vessels in lay-up by end of the quarter

Total fleet of 67 vessels:• 20 AHTSs, 16 PSVs, 30 Subsea vessels, 1 newbuild (PLSV), and 71 ROVs• General market & operational comments

› Improved North Sea market for the PSV fleet › Variable earnings & utilisation for the North Sea AHTS fleet › Variable earnings & utilisation for the Subsea IRM fleet › Stable earnings but idle time between contracts for the fleet in Brazil › High utilisation on the PLSVs on long term contracts with Petrobras

Group backlog of NOK 20 billion

DOF Subsea is contemplating issuance of a new unsecured bond loan of NOK 800 – 1,000 million with maturity in 2023

Financial report 3rd Quarter 2018

Management reporting Financial reporting

(MNOK) Q3 2018 Q3 2017 Q3 2018 Q3 2017

Operating income 1 739 1 801 1 530 1 595 Net gain on sale of tangible assets - - - - EBITDA 535 562 407 490 EBIT 106 -124 31 -134 Net financial costs -283 -16 -320 133 Profit (loss) -269 -26 -269 -26

Ebitda before hedge 587 607 459 535

NIBD (Net interest bearing debt) 20 418 20 824 16 685 17 046 Equity Ratio 21 % 24 % 24 % 27 %

KEY FIGURES

0

12 000

10 000

8 000

6 000

4 000

2 000

2018134

1 538Option

Firm

2019910

4 721

20201 3583 551

20211 9052 828

Thereafter27 3947 610

Group backlog per 30.09.2018

financial report Q3 2018dof asa 5

Q3 Operations Results from the segments (management reporting):

(MNOK) PSV AHTS Subsea Total

Operating income 147 288 1 304 1 739 Net gain on sale of tangible assets - - - -

Operating result before depreciation and impairment - EBITDA 32 110 392 535 Depreciation 31 86 187 305 Impairment 50 10 65 124 Operating result - EBIT -48 14 140 106

EBITDA margin 22 % 38 % 30 % 31 %EBIT margin -33 % 5 % 11 % 6 %

The main part of the Group’s PSV and AHTS fleet operate on firm contracts or in the spot market, while the subsea fleet is partly utilised on term contracts or on subsea IRM (Inspection, Repair and Maintenance) project contracts.

PSVThe PSV fleet includes 16 vessels of which one vessel is owned via a minority share. 15 out of 16 vessels have operated in the North Sea and the average utilisation has been 90% in the quarter. The North Sea market has continued to be busy as reflected in both utilisation and rates. The majority of the fleet has operated on firm contracts after several contract awards during 1st and 2nd quarter this year. One vessel has operated on a firm contract in Australia and one medium sized PSV has been in lay-up.

AHTSThe AHTS fleet comprise 18 vessels and in addition two ves-sels on management. Five vessels are 50% owned via DOF Deepwater AS and one vessel is owned via a minority share in Iceman AS. The average utilisation for the AHTS fleet was 69% in the quarter.

12 vessels have operated in South-America, whereof 11 in Brazil and one in Argentina. The vessels in Brazil have local flag and operate on firm contracts but during the quarter the utilisation has been impacted by vessels idle between contracts. Skandi Fluminense started on a 1-year contract for Petrobras in August after finishing the old contract in June, and Skandi Ipanema has operated on various contracts in the short-term market.

For the fleet in the North Sea the utilisation and day rates have been volatile. Skandi Vega started on a frame agreement with Equinor in 2nd quarter where 120 days are firm, and a variable utilisation has reduced the earnings compared to the same period last year. The three other vessels (two on management and one via a minority share) have partly operated on frame agreements and in the spot market.

The fleet in Asia includes three vessels where two vessels have been in lay-up the entire period and the third vessel has partly been in operation or in lay-up. This fleet rep-resents medium sized AHTS vessels, where the market has continued to be weak.

SUBSEADuring 3rd quarter the Group operated a fleet of 30 Subsea vessels, including vessels hired from external owners. The

majority of the fleet is owned by the subsidiary DOF Subsea AS.

The revenues from the subsea operation include revenues from subsea IRM project contracts and long-term charters. The revenues from the subsea IRM contracts during 3rd quar-ter amounted to NOK 787 million (NOK 727 million). The Group’s project activity is operated by the following regions: the Atlantic region, the Asia Pacific region, the North America region, and the South America (Brazil) region. The overall utilisation of the subsea fleet during the period was 75%.

The Asia Pacific region has conducted IRM and construc-tion work for Shell in the Philippines, and IRM and Survey work in Australia and New Zealand. In the Atlantic region, the Group has executed engineering, survey, light construc-tion and installation work for various clients mainly in the North Sea and in West Africa. In the North America region, the Group has conducted IRM work for Husky Energy in Canada and various project contracts in US-gulf. In Brazil, DOF Subsea has been engaged in ROV inspection work for Petrobras, Shell and Saipem. During the quarter the Group has faced challenges on two projects, one in the Asia Pacific region and one in the Atlantic region which have reduced the Ebitda of in total NOK 30 million. One vessel has been idle in the Asia Pacific region and two vessels have been idle in the North Sea. The activity in Brazil was further impacted by delayed startup of the contracts on Skandi Achiever and Skandi Salvador.

The long-term chartering activity mainly comprise five PLSVs owned by the DOFCON JV in Brazil. Three PLSVs have oper-ated on 8-year contracts with Petrobras with high utilisation rates. Two vessels, Skandi Niteroi and Skandi Vitoria ended their contracts in 2nd and in 3rd quarter respectively and have since then been idle.

DOF Subsea has been awarded extension of a contract in the renewable market for the Skandi Constructor in the North Sea and various contracts in the Asia Pacific region. In the Atlantic region DOF Subsea has further been awarded a frame agreement with Wintershall and survey and inspection work contracts in the North Sea.

NEWBUILD DOF Subsea has one newbuild, a PLSV, Skandi Olinda, owned by the DOFCON JV under construction. The remaining com-mitment for this newbuild is approximately USD 106 million and the vessel is scheduled for delivery in 1st quarter 2019. Skandi Olinda is secured long term funding with BNDES (Brazilian Development Bank) and an 8-year contract with Petrobras.

Main Items Interim Accounts Q3 – Financial ReportingThe below figures represent the Group’s consolidated accounts based on Financial Reporting.

RESULT

(MNOK) Q3 2018 Q3 2017 Change %

Operating income 1 530 1 595 -4 %EBITDA 407 490 -17 %EBIT 31 -134 123 %Net financial costs -320 133 Profit (loss) -269 -26


P&L 3RD QUARTERNet result in 3rd quarter 2018 was NOK -269 million (NOK -26 million), of which NOK -109 million (NOK 26 million) represent impairment and unrealised gain/loss on currencies and financial instruments.

Total revenues and operating costs were slightly down com-pared with 3rd quarter last year and net profit from asso-ciated companies decreased from NOK 81 million last year to NOK 51 million this year, giving an Ebitda of NOK 407 million (NOK 490 million). Total depreciation was NOK 260 million (NOK 257 million) and impairment was NOK 117 million (NOK 367 million). The drop in fair market values has been minor for most of the vessels during the quarter which is the same trend as previous quarter. The Ebit in 3rd quarter was NOK 31 million (NOK -134 million).

Net financial costs are negative with NOK -320 million (NOK 133 million) and include net interest costs of NOK -213 million (NOK -215 million) and gain/loss on curren-cies and financial instruments of NOK -107 million (NOK 347 million).

The Group’s operation in Brazil is based on firm charter contracts mainly in USD secured with debt in correspond-ing currency, hence this activity is cash neutral related to fluctuation in BRL and USD. The Group further use hedge accounting for parts of the revenues from this operation. The EBITDA impact in 3rd quarter related to hedge account-ing amounts to NOK -52 million (NOK -45 million), and the impact on OCI (other comprehensive income) amounts to NOK -72 million (NOK 159 million).

P&L Year to dateYear to date net result was NOK -728 million (NOK -502 million), of which NOK -440 million (NOK -259 million) represent impairment and unrealised loss on currencies and financial instruments.

Total revenues and the operational costs are slightly lower compared to the same period last year and net profit from associated companies has increased from NOK 90 million to NOK 207 million mainly due to more PLSVs in operation owned by the DOFCON JV. Total impairment and deprecia-tion is down from NOK -1,615 million last year to NOK -1,145 million mainly due to less booked impairment. Net financial costs were NOK -908 million (NOK -214 million) of which NOK -615 million (NOK -649 million) represent net interest costs and NOK -294 million (NOK 434 million) net loss/gain on currencies and financial instruments.

Of the Group’s total balance of NOK 26,009 million (NOK 28,230 million), vessels and subsea equipment amount to NOK 18,791 million (NOK 21,068 million). 11 vessels includ-ing newbuilds are owned via joint ventures and are repre-sented as associated companies and non-current receivables in the balance sheet, in total NOK 2,513 million (NOK 1,979 million). The Group’s remaining newbuild is owned via the DOFCON JV and paid instalments are included as non-current receivables. Goodwill amounts to NOK 317 million (NOK 320 million) and has not been impaired in 3rd quar-ter. Total equity is NOK 6,264 million (NOK 7,688 million) and includes a non-controlling interest of NOK 2,391 mil-lion (NOK 3,549 million). Main changes in the equity are a negative result year to date of NOK -728 million, negative currency effects of NOK -484 million and an equity issue of NOK 192 million. The change in minority interests from last year mainly represent reduced minority in DOF Subsea after a share issue in December 2017.

Operational cash flow after payment of interest and taxes was in 3rd quarter NOK -28 million (NOK 58 million), and net cash flow from investing activities is NOK -77 million (NOK -132 million). Net cash flow from financing activities totals NOK -250 million (NOK -138 million).

Operational cash flow after payment of interest and taxes year to date was NOK 288 million (NOK 450 million) and net cash from investing activities NOK -361 million (NOK -792 million) and NOK -656 million (NOK 153 million) from financing activities.

Financing and Capital Structure The Group is mainly funded by secured debt (63%), unse-cured debt/bonds (7%), and equity (24%). The remaining funding represents net working capital.

In 2016 the Company established a convertible bond loan whereof the bond holders were obliged to convert their bonds to shares within a period of maximum five years. The convertible bond loan has since registration been clas-sified as equity. The initial value of the bond loan was NOK 1,032.5 million and outstanding amount by end September was approximately NOK 232 million.

As part of a financial restructuring completed in 2018, including refinancing of bond loans and new equity, one subsidiary DOF Rederi AS, agreed soft terms on a fleet loan until final maturity in 2021. DOF Deepwater JV has further agreed soft terms on the fleet loan until September 2021. Total outstanding of restructured loan is NOK 3,9 billion representing 18% of the Group’s total outstanding debt.

2 000

1 800

1 600

1 400

1 200

1 000| | | | |

Cash30.06.2018

Operatingactivity

Investingactivity

Financingactivity

Exchangegain/losson cash

Cash30.09.2018

2876

2501

1 468

1 823

Cash flow from Q3 2018

BALANCE

(MNOK) 30.09.2018 30.09.2017 Change %

Non-current assets 22 544 24 201 -7 %Current assets 1 996 2 020 -1 %Cash and cash equivalents 1 468 2 009 -27 %Total assets 26 009 28 230 -8 %

Equity 6 264 7 688 -19 %Non-current liabilities 15 209 16 671 -9 %Current liabilities 4 536 3 871 17 %Total equity and liabilities 26 009 28 230 -8 %

Net interest bearing liabilities (NIBD) 16 685 17 046 -1 %


Vessels and equipment, constitute 72% of the Group’s total assets. The broker estimates per September indicate minor adjustments in fair market values of the fleet since 2nd quar-ter. The markets have improved in certain regions year to date compared to same period last year, but there is still an over-supply of vessels and a risk that the fair market value of the fleet may continue to drop.

The main financial covenants for the Group (excluding DOF Subsea) are minimum free liquidity of NOK 500 million, minimum booked equity of NOK 3,000 million, and LTV (Loan to value) clauses on the vessels. For DOF Subsea the main financial covenants are the same including a mini-mum value adjusted equity ratio. By September, the Group was in compliance with all its financial covenants, ref note 9 to the accounts.

The Group is mainly exposed to NOK and BRL against USD. During the quarter, the USD rate has strengthened both against NOK and BRL. Unrealised loss on foreign exchange totals NOK -103 million (NOK 439 million), of which NOK -31 million is booked to the profit and loss account and NOK -72 million to other comprehensive income.

The portion of long-term debt secured with fixed rate of inter-est is approximately 75% of total debt and includes the debt with fixed interest in BNDES (Brazilian Development Bank).

Shareholders By end of September the total share capital was NOK 1,466 million divided into 293 million shares. Total shareholders were 8,101. The main shareholder Møgster Mohn Offshore AS controls 51.37% of the Company and 47.5% on a fully diluted basis.

Employees The Group employed as of 30 September 3,673 employees included hired staff, which is a decrease of 120 employees since previous quarter. The marine personnel amounts to 2,154 people, while 1,237 persons are employed within the subsea segment and 282 are employed onshore conducting marine management.

Health, Safety, Environment and Quality There were not identified any significant HSEQ issues during 3rd quarter.

Events after balance dateDOF Rederi AS was in October awarded a 1-year contract for the Skandi Kvitsøy in the North Sea. Skandi Hav has been granted a 226 day extension on the existing contract with Petrobras, and the vessel is firm until June 2019.

DOF Subsea AS is currently contemplating the issuance of new unsecured bonds of NOK 800 - 1,000 million with

maturity in November 2023. The net proceeds will be used to partly refinance the existing bonds maturing in 2020, and for general corporate purposes.

OutlookThere are signs of improved markets globally, with the North Sea currently as one of the most active area. The North Sea PSV market has started to recover, but in the AHTS market the utilisation and earnings have been disappointing. The Subsea IRM market is still challenging and even though the utilisation has improved, the day rates have not increased substantially. A continuing weak market may increase the risk of reduced utilisation and earnings of the Group’s vessels and is as such, a risk for further impairment of the fleet and increased liquidity risk. The Group maintains its strategy to secure the fleet on term contracts, and is actively working on keeping the firm employment of the fleet as high as possible and adjusting its capacity to the challenging environment.

The Group’s backlog is approximately 52% the next 12 months which is slightly lower than the previous quarter. The major-ity of the Group’s high-end assets are committed on firm contracts and represent the largest portion of the Group’s backlog, and the last newbuild is secured long term funding and a firm contract.

The Board of Directors expects the markets to remain chal-lenging in the North Sea winter season. However, several new contracts commencing in 2nd half 2018 and in 1st quar-ter 2019, the Group’s global presence and a flexible business model within the subsea segment, are expected to secure decent utilisation. The Board of Directors expects today the 4th quarter operational Ebitda to be slightly weaker than the 3rd quarter operational Ebitda.

21 000

20 000

19 000

18 000

17 000

16 000

15 000| | | | | |

31.12.2017 Installment Prepayment Proceeds Currency effects

Other items

30.09.2018

19 040

1 234

307

-730

106 31

18 154

Total interest bearing debt 31.12.2017 - 30.09.2018

The Board of Directors of DOF ASA, November 12th, 2018

IR contacts Mons S. Aase, CEO +47 91661012, [email protected] Hilde Drønen, CFO +47 91661009, [email protected]

DOF ASA5392 Storebøwww.dof.com


Accounts Q3 2018Consolidated income statement

Condensed statement of comprehensive income

(MNOK) Note Q3 2018 Q3 2017 Acc Q3 2018 Acc Q3 2017 2017

Operating income 1 1 530 1 595 4 580 4 871 6 665 Operating expenses -1 173 -1 186 -3 532 -3 591 -4 931 Net profit from associated and joint ventures 7 51 81 207 90 62 Net gain on sale of tangible assets - - 1 -1 2 Operating profit before depreciation and impairment - EBITDA 407 490 1 256 1 370 1 798

Depreciation 6 -260 -257 -785 -761 -1 010 Impairment 6 -117 -367 -360 -854 -1 146 Operating profit - EBIT 31 -134 112 -245 -358

Financial income 21 11 55 63 82 Financial costs -234 -226 -670 -712 -967 Net realised gain/loss on currencies -115 6 -214 -161 -225 Net unrealised gain/loss on currencies -31 280 -191 483 284 Net changes in fair value of financial instruments 39 61 111 112 64 Net financial costs -320 133 -908 -214 -763

Profit (loss) before taxes -289 -1 -796 -459 -1 120

Taxes 12 20 -26 68 -43 -235 Profit (loss) for the period -269 -26 -728 -502 -1 355

Profit attributable toNon-controlling interest -35 82 -68 70 -112 Controlling interest -235 -109 -661 -572 -1 243

Profit per share ex non-controlling interest -0,80 -0,66 -2,32 -3,52 -7,48 Diluted profit per share ex non-controlling interest -0,80 -0,66 -2,32 -3,52 -7,48

(MNOK) Note Q3 2018 Q3 2017 Acc Q3 2018 Acc Q3 2017 2017

Profit (loss) for the period -269 -26 -728 -502 -1 355

Items that will be subsequently reclassified to profit or lossCurrency translation differences 19 -38 -69 -71 -62 Cash flow hedge 5 -72 159 -434 170 116 Share of other comprehensive income of joint ventures 7 19 -36 19 -55 -1 Items that not will be reclassified to profit or loss Defined benefit plan actuarial gain (loss) - - - - 3 Other comprehensive income/loss net of tax -34 85 -484 44 57

Total comprehensive income/loss -303 59 -1 213 -459 -1 299

Total comprehensive income/loss net attributable toNon-controlling interest -18 55 -74 29 -120 Controlling interest -285 4 -1 138 -488 -1 178


Consolidated statement of financial position

(MNOK) Note 30.09.2018 30.09.2017 31.12.2017

ASSETSTangible assets 6 18 791 21 068 20 667Goodwill 317 320 324Deferred tax assets 923 834 715Investment in associated and joint ventures 7 1 331 847 1 021Other non-current receivables 1 182 1 132 1 129Total non-current assets 22 544 24 201 23 855

Trade receivables 1 572 1 513 1 580Other receivables 424 507 401Current receivables 1 996 2 020 1 981

Restricted deposits 274 370 394Cash and cash equivalents 1 194 1 639 1 845Cash and cash equivalents incl. restricted deposits 8 1 468 2 009 2 238

Current assets 3 465 4 029 4 219

Total Assets 26 009 28 230 28 075

EQUITY AND LIABILITIESPaid in equity 3 638 2 832 3 393Other equity 235 1 307 1 444Non-controlling interests 2 391 3 549 2 505Total equity 6 264 7 688 7 342

Bond loan 9 1 930 1 368 1 914Debt to credit institutions 5, 9 13 152 15 195 15 029Derivatives 25 58 55Deferred taxes 12 1 16Other non-current liabilities 90 48 70Non-current liabilities 15 209 16 671 17 085

Current part of bond loan and debt to credit institutions 9 3 190 2 609 2 235Accounts payable 877 805 874Other current liabilities 468 457 539Current liabilities 4 536 3 871 3 648

Total liabilities 19 745 20 542 20 733

Total equity and liabilities 26 009 28 230 28 075


Consolidated statement of equity

(MNOK)Paid-in

capital

Other contributed

capital

Other equity - Retained earnings

Other equity - Currency

translation differences

Other equity - Cash flow

hedgeTotal other

equity

Non-controlling

interestTotal

equity

Balance at 01.01.2018 3 393 276 1 473 232 -537 1 444 2 505 7 342

Result (loss) for the period -661 -661 -68 -728 Other comprehensive income/loss - -43 -434 -477 -7 -484 Reclassification between CTA and cash flow hedge -135 135 - - Total comprehensive income for the period - - -661 -178 -299 -1 138 -74 -1 212

Share issue 202 -11 -11 191 Converted bond loan 43 -43 -43 - Dividend to non-controlling interest -31 -31 IFRS 9 implementation effect -17 -17 -9 -25 Total transactions with owners 245 -43 -27 - - -71 -40 135

Balance at 30.09.2018 3 638 232 785 54 -836 235 2 391 6 264

Balance at 01.01.2017 2 675 493 1 840 309 -693 1 950 3 521 8 146

Result (loss) for the period -572 -572 70 -502 Other comprehensive income/loss -28 -57 170 84 -40 44 Reclassification between CTA and cash flow hedge -35 35 - - Total comprehensive income for the period - - -600 -92 204 -488 30 -458

Converted bond loan 156 -156 -156 - - Total transactions with owners 156 -156 - - - -156 - -

Balance at 30.09.2017 2 832 338 1 240 217 -489 1 307 3 549 7 688

Key figures

Q3 2018 Q3 2017 Acc Q3 2018 Acc Q3 2017 2017

EBITDA margin ex net gain on sale of vessel 1 27 % 31 % 27 % 28 % 27 %EBITDA margin 2 27 % 31 % 27 % 28 % 27 %EBIT margin 3 2 % -8 % 2 % -5 % -5 %Cashflow per share (controlling interest) 4 0,88 1,60 2,79 3,26 4,39 Profit per share (controlling interest) 5 -0,75 -0,54 -2,11 -2,87 -6,23 Profit per share ex. unrealised gain/loss on currencies and changes fair value of financial instruments (controlling interest) 6 -0,77 -0,97 -1,86 -2,01 -3,28

Return on net capital 7 -12 % -7 % -18 %Equity ratio 8 24 % 27 % 26 %Net interest bearing debt 16 685 17 046 16 802Average number of shares *) 293 237 779 164 786 196 284 361 500 162 383 834 166 292 590 Number of shares *) 293 237 779 165 772 018 293 237 779 165 772 018 255 231 251 Potential average number of shares *) 316 456 168 199 456 168 307 579 889 199 456 168 201 739 273 Potential number of shares *) 316 456 168 199 456 168 316 456 168 199 456 168 282 789 502

1) Operating profit before net gain on sale of vessel and depreciation in percent of operating income. 2) Operating profit before depreciation in percent of operating income. 3) Operating profit in percent of operating income. 4) Pre-tax result + depreciation and impairment +/- unrealised gain/loss on currencies +/- net changes in fair value of financial instruments/potential average no of shares.5) Result /potential average no. of shares. 6) Result + net unrealised currency gain/loss + net changes fair value of financial instruments)/potential no of shares. 7) Result incl non-controlling interest/total equity. 8) Total equity/Total balance.

*) The shares in DOF ASA has been consolidated in the ratio of 10:1 in May 2018. Comparable figures are revised.


Consolidated statement of cashflow

(MNOK) Q3 2018 Q3 2017 Acc Q3 2018 Acc Q3 2017 2017

Operating result 31 -134 112 -245 -358Depreciation and impairment 376 624 1 145 1 615 2 155Gain/loss on disposal of tangible assets - - -1 1 -2Share of profit/loss from associates and joint ventures -51 -81 -207 -90 -62Changes in accounts receivables -121 -99 8 -7 -74Changes in accounts payable -53 -85 4 -256 -187Changes in other working capital 99 71 97 194 258Exchange rate effects on operating activities -68 -21 -176 -72 -25Cash from operating activities 213 274 980 1 140 1 705Interest received 4 15 13 51 59Interest paid -236 -240 -682 -713 -956Taxes paid -9 10 -23 -29 -62Net cash from operating activities -28 58 288 450 746

Payments received for sale of tangible assets - - 1 33 61Purchase of tangible assets -76 -104 -340 -713 -867Purchase of shares - - -10 -9 -17Received dividend - - - 5 5Other investments -1 -28 -13 -107 -136Net cash from investing activities -77 -132 -361 -792 -955

Proceeds from borrowings 180 300 725 2 276 2 333Repayment of borrowings -399 -438 -1 541 -2 123 -2 564Share issue - - 191 - 494Payments to non-controlling interests -31 - -31 - -Net cash from financing activities -250 -138 -656 153 262

Net changes in cash and cash equivalents -354 -211 -729 -189 54

Cash and cash equivalents at the start of the period 1 823 2 201 2 238 2 192 2 192Exchange gain/loss on cash and cash equivalents -1 19 -41 6 -7Cash and cash equivalents at the end of the period 1 468 2 009 1 468 2 009 2 238


Note 1 General

Notes to the Accounts

DOF ASA (the “Company”) and its subsidiaries (together, the “Group”) own and operate a fleet of PSV, AHTS, subsea vessels and service companies offering services to the subsea market worldwide.

The Company is a public limited company, which is listed on the Oslo Stock Exchange and incorporated and domiciled in Norway. The head office is located at Storebø in the municipality of Austevoll, Norway.

These condensed interim financial statements were approved for issue on 12 November 2018. These condensed interim financial statements have not been audited.

Basis of preparation These condensed interim financial statements have been prepared in accordance with IAS 34, ‘Interim financial reporting’. The condensed interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2017, which have been prepared in accordance with IFRS.

Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual profit or loss.

Estimates The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing these condensed interim financial statements, the significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31 December 2017, with the exception of changes in estimates that are required in deter-mining the provision for income taxes.

Adoption of new standards from 1 January 2018

IFRS 15 Revenue from contracts with customersThe Group has adopted IFRS 15 Revenue from contracts with customers with effect from 1 January 2018. The transition method is applied retrospectively on contracts that was not completed by 1 January 2018. Implementation of IFRS 15 has not changed the timing of revenue recognition for the Group’s revenue streams. There was no adjustments to the equity as of 1 January 2018.

For further information about the implementation of IFRS 15 please refer to the Annual report for 2017.

IFRS 9 Financial instrumentsThe Group has applied IFRS 9 Financial instruments from 1 January 2018. IFRS 9 Financial instruments addresses the classifica-tion, measurement and de-recognition of financial assets and financial liabilities and introduces new rules for hedge accounting. The implementation had a negative effect on the equity of NOK 25 million as of 1 January 2018, due to the modification of the remaining part of the DOFSUB07 bond loan in December 2017. The increased liability related to the DOFSUB07 bond loan will be amortised as reduced interest cost over the remaining time to maturity.

Accounting policies ‘Operating income’ Revenue is measured based on the consideration specified in a contract with a customer. The Group recognises revenue when it transfers control over a service to a customer. If those services are distinct, the promises are performance obligations and are accounted for separately. A service is distinct if the customer can benefit from the service on its own or together with other resources that are readily available to the customer and the entity’s promise to transfer the service to the customer is separately identifiable from other promises in the contract.


Note 1 General (continued)

For Time Charter revenue, the performance obligations are to operate the vessel that are made available for the client. This per-formance obligation is satisfied over time.

For Project revenue, the performance obligations are tailor made service or constructions on the client’s installations and/or assets. Normally, the customer will benefit and control the service/construction in line with the progress of the project. Thus, performance obligations are satisfied over time.

Operating revenue is shown net of discounts and value-added tax.

For lump sum projects, contract revenue and expenses are recognised over time in accordance with the stage of completion of a contract. The stage of completion is calculated by dividing contract costs incurred to date by total estimated contract costs (input method).

Contract revenue comprises the set amount of revenue agreed by the client in the contract plus variation orders where applica-ble. Variation orders will only be included in contract revenue to the extent they are considered as one performance obligation in combination with the original contract. If the variation order or a group of variation orders are considered as distinct, thus the customer can benefit from the good or service on its own or together with other resources that are readily available to the customer, the performance obligation is accounted for separately.

Cost forecasts are reviewed on a continuous basis and the project accounts are updated in a monthly project manager’s report as a result of these reviews.

Costs incurred relating to future performance obligations are deferred and recognised as asset in the consolidated statement of financial position. The cost incurred will be expensed in line with the satisfaction of the performance obligation. Conversely, where revenue is received in advance of costs being incurred, a deferred liability is recognised in the consolidated statement of financial position.

In the event that it is probable total contract costs will exceed contract revenue (onerous contracts), the anticipated loss is immediately recognised as an operating expense in the consolidated statement of comprehensive income. Expected losses are determined by reference to the latest estimate of project results at completion. The calculation of onerous contracts are in line with the principles in IAS 37 Provisions, Contingent Liabilities and Contingent Assets.

There have been no other significant changes to accounting policies in the first quarter 2018 compared to applied accounting poli-cies described in the annual accounts for 2017.


The reporting below is presented according to internal management reporting, based on the proportional consolidation method of accounting of jointly controlled companies. The bridge between the management reporting and the figures reported in the financial statement is presented below.

Note 2 Management reporting

RESULT 3rd Quarter 2018 3rd Quarter 2017

(MNOK)

Management reporting

Reconcilia-tion to equity

method

Financial reporting



method Financial reporting

Operating income 1 739 -210 1 530 1 801 -206 1 595 Operating expenses -1 199 25 -1 173 -1 231 45 -1 186 Net profit from associated and joint ventures -6 57 51 -8 89 81 Net gain on sale of tangible assets - - - - - - Operating profit before depreciation and impairment - EBITDA 535 -128 407 562 -73 490 Depreciation -305 45 -260 -291 34 -257 Impairment -124 7 -117 -395 28 -367 Operating profit - EBIT 106 -75 31 -124 -10 -134 Financial income 11 10 21 3 9 11 Financial costs -292 58 -234 -257 31 -226 Net realised gain/loss on currencies -118 2 -115 4 2 6 Net unrealised gain/loss on currencies -29 -1 -31 297 -17 280 Net changes in fair value of financial instruments 39 - 39 61 - 61 Net financial costs -389 69 -320 108 25 133 Profit (loss) before taxes -283 -6 -289 -16 15 -1 Taxes 13 6 20 -10 -15 -26 Profit (loss) -269 0 -269 -26 0 -26

BALANCE 30.09.2018 30.09.2017

(MNOK)







ASSETSTangible assets 24 615 -5 825 18 791 26 099 -5 030 21 068 Goodwill 317 - 317 320 - 320 Deferred taxes 945 -22 923 898 -64 834 Investment in associated companies and joint ventures 77 1 254 1 331 75 772 847 Other non-current financial assets 198 984 1 182 587 545 1 132 Total non-current assets 26 152 -3 607 22 544 27 979 -3 778 24 201 Receivables 2 175 -179 1 996 2 233 -213 2 020 Cash and cash equivalents 1 750 -281 1 468 2 137 -128 2 009 Total current assets 3 925 -460 3 465 4 370 -341 4 029 Total assets 30 076 -4 068 26 009 32 348 -4 119 28 230

EQUITY AND LIABILITIESEquity 6 264 - 6 264 7 688 - 7 688 Non-current liabilities 18 648 -3 439 15 209 20 317 -3 647 16 671 Current liabilities 5 165 -629 4 536 4 343 -472 3 871 Total liabilities 23 812 -4 068 19 745 24 661 -4 119 20 542 Total equity and liabilities 30 076 -4 068 26 009 32 348 -4 119 28 230

Net interest bearing liabilities 20 418 -3 733 16 685 20 824 -3 778 17 046


Note 3 Segment information - management reporting

Note 4 Operating income

The Group’s operating income streams are a result of the Group’s Time Charter contracts and Project Contracts.

Time Charter revenue is based on contracts where the Group deliver a vessel including crew, to a client. The charterer deter-mines, within the contractual limits, how the vessel is to be utilised. A Time Charter contract consists of a bareboat component and a service component. The bareboat period starts from the time the vessel is made available to the customer and expires on the agreed return date. The Bareboat component will normally be within the range 30-80% of the total contract value. The service component covering crew on board the vessel. The service component is within the scope of IFRS 15, while the bareboat component is within the scope of IAS 17/IFRS 16. Both the service and the bareboat are recognised as revenue over the lease period on a straight-line basis. There is no time charter revenue when the vessels are off hire.

Project revenue is based on contracts where the Group utilises its vessels, equipment, crew and the onshore project organisation to perform tailor made service on the client’s installations and/or assets. The project revenue is recognised over time.

Both Time Charter contracts and Project contracts are contracts with customers where the Group is compensated based on a fixed day rate for vessel, equipment and personnel. Some of the project contracts will from time to time be lump sum contracts based on a fixed fee for the total service and/or construction delivered.

PSV AHTS Subsea Total

3rd quarter 2018

Operating income 147 288 1 304 1 739 Net gain on sale of tangible assets - - - - Operating result before depreciation and impairment - EBITDA 32 110 392 535 Depreciation 31 86 187 305 Impairment 50 10 65 124 Operation result - EBIT -48 14 140 106

3rd quarter 2017

Operating income 211 353 1 236 1 801 Net gain on sale of tangible assets - - - - Operating result before depreciation and impairment - EBITDA 40 164 358 562 Depreciation 35 66 190 291 Impairment 151 36 207 395 Operation result - EBIT -146 61 -40 -124

OPERATING INCOME Q3 2018 Q3 2017 Acc Q3 2018 Acc Q3 2017 2017

Lump sum contracts 21 15 59 85 362 Day rate contracts 1 509 1 580 4 521 4 786 6 303 Total 1 530 1 595 4 580 4 871 6 665


DepreciationThe Group has from 01.01.2018 changed the period of useful life for the PSV and AHTS fleet, due to the market expectation for used vessels.

Impairment The challenging market condition for offshore service vessels has continued. Impairment indicators are observed and an impair-ment test for vessels in the Group has been done. Impairment tests are performed in line with accounting principles presented in annual report for 2017. Impairment of NOK 117 million has been recognised in the 3rd quarter of 2018 and NOK 360 million year to date 30.09.2018.

In addition an impairment in the joint ventures of NOK 7 million has been done in 3rd quarter and NOK 37 million year to date 30.09.2018.

Note 6 Tangible assets

2018

Vessel and periodical

maintenance ROV NewbuildsOperating

equipment Total

Book value at 01.01.2018 19 368 844 11 444 20 667 Addition 285 3 8 49 345 Vessel completed - Disposal - Reclassification 21 -14 -7 - Depreciation -586 -117 -82 -785 Impairment loss -359 -1 -360 Currency translation differences -1 056 -5 -16 -1 077 Book value at 30.09.2018 17 652 746 5 387 18 791

2017

Vessel and periodical

maintenance ROV NewbuildsOperating

equipment Total

Book value at 01.01.2017 20 869 856 26 448 22 199 Addition 235 7 546 45 833 Addition from acquisition 55 Vessel completed 499 61 -557 -3 - Disposal -30 -3 -33 Reclassification - Depreciation -560 -112 -90 -761 Impairment loss -844 -844 Currency translation differences -380 -2 12 -10 -380 Book value at 30.09.2017 19 789 807 82 390 21 068

Note 5 Hedges

The Group applies cash flow hedge accounting related to foreign exchange rate risk on expected highly probable income in USD, using a non-derivatives financial hedging instrument. This hedging relationship is described below.

Cash flow hedge involving future highly probable income The Group applies hedge accounting related to the cash flow hedging of expected highly probable income in USD, from its opera-tions in Brazil.

The cash flow hedges hedge a portion of the foreign currency risk arising from highly probable income in USD relating to time charter contracts on vessels owned by the companies Norskan Offshore Ltda and DOF Subsea Navegacao Ltda.

The hedging instruments are portions of the companies’ long term debt denominated in USD. The risk being hedged in each hedging relationship is the spot element of the forward currency rate of USD/BRL. The future highly probable income has a sig-nificant exposure to the spot element as the spot element is the main part of the forward rate. The long term debt is translated from USD to BRL at spot rate on the balance sheet date every reporting period.

The effective portion of changes in the fair value of the instruments that are designated and qualify as cash flow hedges is recognised in other comprehensive income. The gain or loss relating to the ineffective portion is recognised immediately in the income statement.

Amounts accumulated in equity are reclassified to profit or loss in the periods when the expected income is recognised.


Note 8 Cash and cash equivalent

30.09.2018 30.09.2017 31.12.2017

Restricted cash *) 274 370 394Cash and cash equivalent 1 194 1 639 1 845Total cash and cash equivalent 1 468 2 009 2 238

Effect of application of IFRS 11 on investments in joint ventures; 30.09.2018

Opening balance 01.01.2018 1 021 Addition 7 Profit (loss) 207 Profit (loss) through OCI 19 Negative value on investments reallocated to receivable and liabilities 77 Closing balance 30.09.2018 1 331

Joint ventures Ownership

DOFCON Brasil AS with subsidiaries 50 %DOF Deepwater AS 50 %DOF Iceman AS (owner of 40% in Iceman AS, Skandi Iceman) 50 %

Associated companiesMaster & Commander 20 %Skandi Aukra AS 34 %Iceman AS (Skandi Iceman) 35 %DOF OSM Services AS 50 %DOF Subsea Ghana Ltd 49 %

Note 7 Investment in associated and joint ventures

The Company’s investment in associates and joint ventures as of 30.09.2018;

*) Including restricted cash related to non-current loans from Eksportfinans.


Note 9 Interest bearing liabilities

30.09.2018 30.09.2017 31.12.2017

Non-current interest bearing liabilities Bond loan 1 930 1 368 1 914 Debt to credit institutions 13 152 15 195 15 029 Total non-current interest bearing liabilities 15 082 16 563 16 943

Current interest bearing liabilitiesBond loan 508 Debt to credit institutions 2 739 1 684 1 687 Utilised credit facilities 333 300 410 Total current interest bearing liabilities 3 072 2 492 2 097

Total interest bearing liabilities 18 154 19 055 19 040

Net interest bearing liabilitiesCash and cash equivalents 1 468 2 009 2 238 Total net interest bearing liabilities *) 16 685 17 046 16 802

Installment- and balloon profile *) Q4 2018 Q1 2019 Q2 2019 Q3 2019

Total current

debt Q4 2019 2020 2021 2022 Subsequent Total

Bond loan - 100 408 1 415 1 923 Debt to credit institutions 557 451 920 811 2 738 673 2 244 3 504 1 153 5 639 15 951 Utilised credit facilities 333 333 333 Total 890 451 920 811 3 072 773 2 652 3 504 2 568 5 639 18 207 *) Amortised costs are excluded in the figures above.

Loan divided on currency and fixed interestShare fixed

interest Balance

30.09.2018

NOK 67 % 7 925 USD 81 % 9 809 CAD 100 % 392 BRL 0 % 81 Total 75 % 18 207

Covenants regarding non-current liabilities to credit institutions:

DOF ASA DOF ASA Group shall have a book equity higher than NOK 3,000 million, free cash deposits shall at all times be minimum NOK 500 million excluding DOF Subsea AS (and it’s subsidiaries) and market value of the vessels on aggregated level shall at all times be higher than 100% of outstanding secured debt.

DOF Subsea AS DOF Subsea AS shall have a book equity higher than NOK 3,000 million, free cash deposits shall at all times be minimum NOK 500 mil-lion (based on the proportionate consolidation method of accounting for joint ventures), value adjusted equity shall be at least 30% and market value vessels shall at all times be at least 110-130% of outstanding secured debt.

Per 30.09.2018 the Group’s is in complience with its financial covenants.

*) Non-current loans have been provided by Eksportfinans and are invested as restricted deposits in DNB. The loans are fully repaid in 2021 and the cash deposit is included in restricted deposits.

Current debt to credit institutions amounts to NOK 2,739 million, where NOK 983 is balloons with maturity in June and July 2019 and NOK 1,756 million is normal amortisation (excluded accrued interest). In addion utilised credit facilities amounts to NOK 333 million.


Note 9 Interest bearing liabilities (continued)

Note 10 Subsequent events

Contracts DOF Rederi AS was in October awarded a 1-year contract for the Skandi Kvitsøy in the North Sea.

Skandi Hav has been granted a 226 days extension by Petrobras.

Financing DOF Subsea AS is currently contemplating the issuance of new unsecured bonds of NOK 800 - 1,000 million with maturity in November 2023.

Non-cash changes

Reconciliation changes in liabilitiesBalance

31.12.2017 Cash flowsIFRS 9 effect

Proceeds lease debt

Amortised loan expenses

Reclassifi-cation

Currency adjustments

Balance 30.09.2018

Non-current interest bearing liabilitiesBond loan 1 914 25 -5 -5 1 930 Debt to credit institutions 15 029 -889 5 20 -888 -125 13 152 Total 16 943 -889 25 5 15 -888 -130 15 082

Non-current interest bearing liabilitiesDebt to credit institutions 1 687 150 888 14 2 739 Utilised credit facilities 410 -77 333 Total 2 097 73 - - - 888 14 3 072

Total interest bearing liabilities 19 040 -816 25 5 15 - -116 18 154


Note 11 Transaction with related parties

Note 12 Taxes

Note 13 New standard and interpretation not yet adopted

Transactions with related parties are governed by market terms and conditions in accordance with the “arm’s length principle”. The transactions are described in the Annual report for 2017.

There are no major changes in the type of transactions between related parties.

Taxes per 30 September 2018 are a preliminary estimate.

IFRS 16 Leases replaces the current standard IAS 17, Leases and related interpretations. IFRS 16 Leases removes the current distinction between operating and financing leases for lessees, and requires recognition of an asset (the right to use the leased item) and a financial liability representing its obligation to make lease payments. Lease payments are to be reflected as interest expense and a reduction of lease liabilities. The standard is effective for accounting periods beginning on or after January 1, 2019. The Group will adopt the standard at its mandatory date.

The DOF Group has completed an initial assessment of the potential impact on its consolidated financial statements by reviewing the DOF Group’s leasing arrangements over the last year in light of the new lease accounting rules in IFRS 16 Leases. The actual impact of applying IFRS 16 Leases on the financial statements in the period of initial application will depend on future economic conditions, including the DOF Group’s borrowing rate at 1 January 2019, currency rate, accuracy in calculation, the composition of the DOF Group’s lease portfolio at that date, the DOF Group’s latest assessment of whether it will exercise any lease renewal options and the extent to which the DOF Group chooses to use practical expedients and recognition exemptions.

The following arrangements are likely to be effected;• Bareboat charters will typically meet the new definition of a lease since under these agreements the charterer controls

the use of the ship for a period of time.• Time charters are likely to contain both a lease (i.e. right to use the ship) and service components (i.e. operation and

maintenance of the ship by the ship owner).• Rent of offices.• Other equipment.

IFRS 16 Leases redefines financial key figures such as debt ratio and EBITDA. The standard will affect primarily the accounting for the DOF Group’s operating leases. The DOF Group does not expect any significant impact on the financial statements for leases in which the DOF Group is a lessor, except for sub-leases. By the end of the third quarter the DOF Group estimates the following impact from IFRS 16 Leases on the based on the estimated lease portfolio as per the transitional date 1 January 2019 and compared to as if the standard was not implemented;• Lease liabilities of approximately NOK 490 million, • Right-of-use assets of approximately NOK 335 million,• Finance lease receivable of approximately NOK 155 million,• Net profit before tax will decrease by approximately NOK 5 million,• EBITDA is expected to increase by approximately NOK 60 million.

The above estimates do not include additions to the lease portfolio during 2019.


By the end of the third quarter 2018, the following main policy choices have been made and form the basis for the DOF Groups IFRS 16 implementation and application work:

IFRS 16 transition choicesThe DOF Group intends to apply the simplified transition approach and will not restate comparative amounts for the year prior to first adoption. Therefore, the cumulative effect of adopting IFRS 16 will be recognised as an adjustment to the opening balance of retained earnings at 1 January 2019, with no restatement of comparative information.

Contracts already classified either as leases under IAS 17 or as non-lease service arrangements will maintain their respective clas-sifications upon the implementation of IFRS 16 (“grandfathering of contracts”).

Lease liabilities are measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate as of 1 January 2019. The weighted average lessee’s incremental borrowing rate applied to the lease liabilities pre-sented are 5%. Right-of-use assets will be measured on transition as at the amount of the lease liability on adoption (adjusted for any prepaid or accrued lease expenses). The cumulative effect of initially applying the standard to be recognised as an adjustment to the opening balance of retained earnings is hence expected to be zero.

When applying a modified retrospective approach to leases previously classified as operating leases under IAS 17, the lessee can elect, on a lease-by-lease basis, whether to apply a number of practical expedients on transition. The DOF Group has used the following practical expedients permitted by the standard: • applying IAS 37 for assessment of whether leases are onerous,• the accounting for operating leases with a remaining lease term of less than 12 months as at 1 January 2019 as short-

term leases, and• the exclusion of initial direct costs for the measurement of the right-of-use asset at the date of initial application.

The DOF Group is not required to make any adjustments for leases in which it is a lessor except where it is an intermediate lessor in a sub-lease.

IFRS 16 application policy choicesThe DOF Group has decided not to apply IFRS 16 for intangible assets.

The DOF Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets.

Non-lease components within lease contracts will be accounted for separately for all underlying classes of assets, and reflected in the relevant expense category as incurred.

Note 13 New standard and interpretation not yet adopted (continued)


Note 14 Share capital and shareholders

Largest shareholders as of 30.09.2018

Name No. shares Shareholding

MØGSTER MOHN OFFSHORE AS 150 638 643 51.37 %BNP PARIBAS SECURITIES SERVICES 9 570 169 3.26 %MORGAN STANLEY & CO. LLC 3 070 010 1.05 %NORDNET BANK AB 2 415 350 0.82 %DRAGESUND INVEST AS 2 360 000 0.80 %MOCO AS 1 984 419 0.68 %CITY FINANCIAL ABSOLUTE EQUITY FD 1 927 716 0.66 %NORDNET LIVSFORSIKRING AS 1 675 285 0.57 %SKANDINAVISKA ENSKILDA BANKEN AB 1 559 201 0.53 %STAVERN HELSE OG FORVALTNING AS 1 500 000 0.51 %CITIBANK, N.A. 1 482 548 0.51 %PARETO AS 1 269 098 0.43 %TOPDANMARK LIVSFORSIKRING A/S 1 250 000 0.43 %AS NAVE 1 250 000 0.43 %THE NORTHERN TRUST COMP, LONDON BR 1 198 433 0.41 %BORGARØY INVEST AS 1 185 000 0.40 %MANDATUM LIFE INSURANCE COM LTD-7 1 000 000 0.34 %FLU AS 1 000 000 0.34 %STOKO AS 1 000 000 0.34 %AKERSHUS FYLKESKOMM. PENSJONSKASSE 1 000 000 0.34 %Total 188 335 872 64.23 %

Total other shareholders 104 901 907 35.77 %Total no of shares 293 237 779 100.00 %


Note 15 Performance measurements definitions

DOF ASA financial information is prepared in accordance with international financial reporting standards (IFRS). In addition DOF ASA discloses alternative performance measures as a supplement to the financial statement prepared in accordance with IFRS. Such performance measures are used to provide an enhanced insight into the operating performance, financing and future prospects of the company and are frequently used by securities analysts, investors and other interested parties.

The definitions of these measures are as follows:

Financial reporting – Financial Reporting according to IFRS.

Management reporting – Investments in joint ventures (JV) is consolidated on gross basis in the income statement and the statement of financial position.

EBITDA – Operating profit (earnings) before depreciation, impairment, amortisation, net financial costs and taxes is a key finan-cial parameter. The term is useful for assessing the profitability of its operations, as it is based on variable costs and excludes depreciation, impairment and amortise costs related to investments. Ebitda is also important in evaluating performance relative to competitors.

EBITDA before hedge – Ebitda as described above adjusted for hedge accounting of revenue, according to mangement reporting.

Operational EBITDA – Ebitda as described above adjusted for gain on sale of tangible assets, according to management reporting.

Operational EBITDA before hedge – Ebitda as describe above adjusted for gain on sale of tangible assets and hedge accounting of revenue, according to management reporting.

EBIT – Operating profit (earnings) before net financial costs and taxes.

Profit before unrealised finance costs – Profit before net unrealised gain/loss on currencies and net changes in the fair value of financial instruments.

Unrealised finance costs – Total unrealised gain/loss on currencies and net changes in the fair value of financial instruments.

Unemployed capital – Vessel under construction (newbuildings).

Interest bearing debt – Total of current and non-current borrowings.

Net interest bearing debt – Interest bearing debt minus current and non-current interest-bearing receivables and cash and cash equivalents. The use of the term “net debt” does not necessarily mean cash included in the calculation are available to settle debts if included in the term.

Debt ratio - Net interest bearing debt divided on total equity and debt.

Utilisation - Utilisation of vessel numbers is based on actual available days including days at yard for periodical maintenance, upgrading, transit or idle time between contracts.

Contract coverage – Number of future sold days compared with total actual available days excluded options.

Contract Backlog – Sum of undiscounted revenue related to secured contracts in the future and optional contract extensions as determined by the client. Contract coverage related to master service agreements (MSA`s) within the CSV segment, includes only confirmed purchase order.

Norway

DOF Subsea ASThormøhlensgate 53 C5006 Bergen NORWAYPhone: +47 55 25 22 00Fax: +47 55 25 22 01

DOF Subsea Norway ASThormøhlensgate 53 C5006 BergenNORWAYPhone: +47 55 25 22 00Fax: +47 55 25 22 01

DOF Management ASAlfabygget5392 Storebø NORWAY Phone: +47 56 18 10 00Fax: +47 56 18 10 [email protected]

Angola

DOF Subsea AngolaBelas Business Park-TalatonaEdificio Bengo, 1º AndarSala 106/107, Luanda REPUBLIC OF ANGOLAPhone: +244 222 43 28 58Fax: +244 222 44 40 68Mobile: +244 227 28 00 96 +244 277 28 00 95

Argentina

DOF Management Argentina S.A.Peron 315, piso 1, Oficina 6-b1038 - Buenos AiresARGENTINAPhone: +54 11 4342 4622 [email protected]

Australia

DOF Subsea Australia Pty Ltd5th Floor, 181 St. Georges TcePerth WA 6000AUSTRALIAPhone +61 8 9278 8700Fax: +61 8 9278 8799

DOF Management Australia5th Floor, 181 St. Georges TcePerth WA 6000AUSTRALIAPhone: +61 3 9556 5478Mobile: +61 418 430 [email protected]

Brazil

NorSkan Offshore LtdaRua Lauro Muller116, 17 andarTorre do Rio Sul - BotafogoRio de Janeiro, R.J.BRAZIL - CEP: 22290-160 Phone: +55 21 21 03 57 00Fax: +55 21 21 03 57 [email protected]

DOF Subsea Brasil Serviços LtdaRua Fiscal Juca, 330 Q: W2 – L: 0001 Loteamento Novo Cavaleiros Vale Encantado – Macaé/RJ BRAZIL - CEP 27933-450Phone: +55 22 21 23 01 00Fax: +55 22 21 23 01 99

Canada

DOF Subsea CanadaDOF Subsea Canada26 Allston StreetMount Pearl, NewfoundlandCANADA, A1N 0A4Phone: +1 709 576 2033Fax: +1 709 576 2500

DOF ASAAlfabygget5392 StorebøNORWAY

Phone: +47 56 18 10 00Fax: +47 56 18 10 [email protected]

Singapore

DOF Management Pte Ltd460 Alexandra Road #15-02PSA Building, 119963SINGAPOREPhone: +65 6868 1001Fax: +65 6561 [email protected]

DOF Subsea Asia Pacific Pte Ltd460 Alexandra Road #15-02PSA Building, 119963SINGAPOREPhone: +65 6561 2780Fax: +65 6561 2431

UK

DOF (UK) LtdHorizons House, 81-83 Waterloo Quay Aberdeen, AB11 5DE UNITED KINGDOMPhone: +44 1224 586 644Fax: +44 1224 586 [email protected]

DOF Subsea UK LtdHorizons House 81-83 Waterloo Quay Aberdeen, AB11 5DE UNITED KINGDOMPhone: +44 1224 614 000Fax: +44 1224 614 001

USA

DOF Subsea USA Inc5365 W. Sam Houston Parkway N Suite 400 Houston, Texas 77041 USAPhone: +1 713 896 2500Fax: +1 713 726 5800

DOF ASAAlfabygget

5392 StorebøNORWAY

www.dof.com

q3 2018 - dof group

Documents