Oceanteam : Half year 2022 report

Oceanteam ASA Half-year report 2022

Oceanteam H1 report 2022	1

CONTENT
1.	KEY EVENTS AND FINANCIAL PERFORMANCE......................................................................................................................	3
2.	MESSAGE FROM THE CEO........................................................................................................................................................	5
3.	CORPORATE IDENTITY, VISION AND MISSION......................................................................................................................	6
4.	MARKET OUTLOOK...................................................................................................................................................................	7
5.	BOARD OF DIRECTORS AND MANAGEMENT TEAM.............................................................................................................	9
6.	REPORT OF THE BOARD OF DIRECTORS..............................................................................................................................	9
	a.	CORPORATE STRUCTURE......................................................................................................................................	9
	b.	BUSINESS ACTIVITY OCEANTEAM SOLUTIONS..................................................................................................	9
	c.	BACKLOG..................................................................................................................................................................	9
	d.	COMMENTS RELATED TO THE FINANCIAL STATEMENTS.................................................................................	9
	e.	GOING CONCERN....................................................................................................................................................	11
	f. EVENTS AFTER THE BALANCE SHEET DATE.......................................................................................................	11
7.	CONFIRMATION FROM THE BOARD OF DIRECTORS AND CEO..........................................................................................	11
8.	FINANCIAL STATEMENTS..........................................................................................................................................................	12
	Consolidated statement of profit or loss and other comprehensive income....................................................	12
	Consolidated statement of financial position..........................................................................................................	14
	Consolidated statement of changes in equity..........................................................................................................	16
	Consolidated cash flow statement.............................................................................................................................	17
9.	NOTES TO THE FINANCIAL STATEMENTS.............................................................................................................................	18
	Note 1. Basis of preparation.........................................................................................................................................	18
	Note 2. New standards, interpretations and amendments adopted by the Group..........................................	18
	Note 3. Operating segments.........................................................................................................................................	19
	Note 4. Tangible assets..................................................................................................................................................	20
	Note 5. Investments in subsidiaries............................................................................................................................	21
	Note 6. Loans and borrowings.....................................................................................................................................	22
	Note 7. Investment in joint ventures and associates...............................................................................................	23
	Note 8. Related party transactions..............................................................................................................................	25
	Note 9. Alternative performance measures...............................................................................................................	27
	Note 10. Discontinued Operations..............................................................................................................................	29

Oceanteam H1 report 2022

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1. Key Events and Financial Performance

In this report Oceanteam ASA is further referred to as "Oceanteam" or "Company". Oceanteam Group consists of Oceanteam ASA and its subsidiaries.

KEY EVENTS in First Half Year 2022 (H1 2022)

Oceanteam Solutions activities:

• In February to April 2022, Oceanteam assisted a Chinese client with transporting subsea cables from China to The Netherlands.
  The project included shipping as well as spooling of cables.
• In February 2022, a rental agreement for one of Oceanteam's 4000 tonne carousels was modified whereby the carousel was returned approximately one year early.
• In H1 2022, utilisation of the Oceanteam Solutions carousels and tensioners was 23% and 21% respectively. The carousels are much more valuable than the tensioners and earn significantly higher day rates.

Corporate events:

• In April 2022, Jacob Johannes van Heijst was elected as a board member of Oceanteam ASA.

Oceanteam H1 report 2022

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KEY FINANCIAL FIGURES OF THE OCEANTEAM GROUP

Amounts in US Dollar million	Unaudited	Unaudited
From the comprehensive income	30-6-2022	30-6-2021	Variance
Operating income	1.5	3.5	(2.0)
Operating expenses	(0.9)	(2.1)	1.2
Personnel cost	(0.5)	(1.0)	0.5
General & administration	(0.4)	(0.4)	0.0
Depreciation	(0.5)	(0.6)	0.1
Operating profit / (loss) (EBIT)	(0.8)	(0.6)	(0.2)
Net finance costs	(0.2)	(0.1)	(0.1)
Ordinary profit / (loss) before taxes	(1.0)	(0.7)	(0.3)
Tax income / (expenses)	(0.0)	(0.0)	(0.0)
Profit / (loss) from continuing operations	(1.0)	(0.7)	(0.3)
Profit / (loss) from discontinued operations	(0.1)	(0.8)	0.7
Profit / (loss) for the year	(1.1)	(1.5)	0.4
Amounts in US Dollar million	Unaudited	Unaudited	Audited
From the financial position	30-6-2022	30-6-2021	31-12-2021
Non-current assets	12.6	14.0	13.2
Current assets	4.1	8.1	5.4
Cash	2.1	1.2	2.8
Total assets	16.8	22.2	18.5
Interest bearing debt	3.0	3.0	3.0
Equity	12.0	14.7	13.1
Key Figures	30-6-2022	30-6-2021	31-12-2021
EBITDA*	(0.3)	(0.1)	0.1
Current ratio*	0.87	1.83	2.22
Equity ratio*	72%	66%	71%
Capital Expenditures*	(0.0)	(0.0)	0.0
Operating margin*	(19)%	(2)%	2%
*See note 9 - Alternative Performance Measures
Number of outstanding shares on 30 June 2022/31 December 2021	34.338.833	34.338.833

Oceanteam H1 report 2022

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2. Message from the CEO

The unprecedented health crisis as a result of the COVID-19 pandemic in previous years preceded war returning to Europe when Russia invaded Ukraine in February 2022. With supply chains still recovering from shutdowns and trade disruptions, inflation soared further due to the rising cost of energy. As such the first half of 2022 brought on a combination of macro financial and economic challenges that investors have not seen in decades.

The impact on the global economy and stock markets around the world has drastically changed the investment climate. Despite tumultuous times as a result of increasing interest rates, high inflation and looming recession, it is quite apparent that the energy sector and associated transition to renewables has interesting opportunities to offer.

Oceanteam remains confident and optimistic but at the same time critical in its search for investment opportunities and the corresponding increase in shareholder value. At this point various propositions with predictable cashflows are being evaluated. Any material developments on this process will be announced in due course.

In the meantime, activity in the Solutions segment was just below expectations with revenue over the first 6 months of 2022 being USD 1.5 million compared to USD 3.5 million in H1 2021. However, further to ongoing cost reductions the overall Group result improved to a net loss of USD 1.1 million vs. a net loss of USD 1.5 million in H1 2021.

Despite the net loss, the divestment of our shipping assets, the subsequent restructuring and other cost cutting measures, our cash position did improve considerably compared to H1 of the previous year from USD 1.2 million to USD 2.1 million as per 30th of June 2022. The existing (shipping) joint venture entities with Bourbon are expected to be dissolved in Q4 2022.

Outlook Solutions:

Whereas fewer subsea cable projects and fierce competition marked the first 6 months of this year, increasing demand, especially in the renewables segment, with better margins is expected and already observed for the second half of this year.

Westwood Energy - Subsea Cable Tracker

Another corporate event was the election of Mr Jacob Johannes van Heijst as board member of Oceanteam ASA in April 2022. I take this opportunity to welcome him once more and look forward to continue exploring growth opportunities in close cooperation with the Board of Directors.

Last but certainly not least, I would like to thank our small but dedicated team. I am truly grateful for their unrelenting efforts, hard work and enthusiasm in setting a new course and creating a better future for Oceanteam.

Hans Reinigert

CEO of Oceanteam ASA

Oceanteam H1 report 2022

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