ANNUAL REPORT 2017 - DOF Subsea€¦ · DOF Installer ASA Annual Report 2017 DOF INSTALLER ASA DIRECTORS REPORT DOF Installer ASA (the Company) was founded in December 2006. Since

ANNUAL REPORT

2017DOF INSTALLER ASA

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DOF Instal ler ASA Annual Report 2017

DOF INSTALLER ASA DIRECTORS REPORT

DOF Installer ASA (the Company) was founded in December 2006. Since its inception, the Company, has been a supplier of vessels for the subsea and AHTS market. During the 11 years of operation the Company has taken delivery of five high-end subsea/AHTS vessels, of which two have been sold. In May, the Company took delivery of a newbuild IMR vessel, Skandi Vinland, which entered into a 12-year charter contract with DOF Subsea Canada in July.

During 2017 the Company’s vessels have been operating in the subsea market in the North Sea, in the Far East and off the East Coast of Canada under charter contracts with the DOF Subsea Group. In 2017, the operating revenue was NOK 206 million (NOK 193 million in 2016) with an operating profit before depreciation (EBITDA) of NOK 158 million (NOK 178 million). The operating profit (EBIT) was NOK 107 million (NOK -109). Total assets amounted to NOK 2 587 million (NOK 2 185 million), of which NOK 2 141 million was non-current assets (NOK 1 615 million in 2016). Total equity was NOK 1 295 million (NOK 1 259 million), and net interest-bearing debt was NOK 884 million (NOK 362 million). The Company’s headquarters is located at Storebø in the municipality of Austevoll.

Business concept and vision

The Company’s core business is ownership of subsea vessels, and at year-end 2017 the Company owned three vessels. The vessels are chartered to DOF Subsea where they are utilised in the Subsea/IMR Projects segment. The vessels owned by the Company are among the most advanced subsea and AHTS vessels ever built with high bollard pull, offshore cranes and ROV capabilities. The vessels were built to comply with the highest international standards for Environment and Safety of Life at Sea. The vessels’ size and capabilities make them suitable for global operations and create a good foundation for long-term relationships with the end users of the vessels.

DOF Installer ASA is a part of the DOF Subsea Group and is working under the DOF Subsea Group’s certification and Business Management System. In 2017 DOF Management AS has been responsible for the vessel management of the Company’s vessels through ship management agreements.

For further reading reference is given to the annual report of the parent company DOF Subsea AS and the DOF Subsea Group.

Operational events

In 2017, the Company benefited from being part of the DOF Subsea Group. The Company’s vessels have in 2017 been chartered to subsidiaries of DOF Subsea AS and, to a minor extent, directly to external clients.

During the year, Skandi Hercules has been chartered to DOF Subsea where it has been utilised in the subsea market in the Asia Pacific (APAC) region. The vessel has been utilised on projects for OMV in New Zealand, PTTEP in Thailand, Hess in Malaysia and Chevron on the Gorgon and Jansz field in Western Australia.

During the year, Skandi Skansen has been chartered to DOF Subsea where it has been utilised in the subsea market in the Atlantic region. The vessel has been utilised on projects for Yinson in Ghana and Dana Petroleum Ltd on the Harris and Barra fields in the northern North Sea. At the end of the year, the vessel conducted work for TechnipFMC in Libya.

Skandi Vinland was delivered in May and commenced on a 12-year bareboat charter contract with DOF Subsea Canada in July where it is utilised on the 10-year IMR contract with Husky Energy off the East Coast of Canada. The financing of the vessel was done at market terms with ABN Amro, GIEK and Eksportkreditt and with standard covenants for the DOF Subsea Group.

In May, DOF Installer ASA purchased the shares in Canadian Subsea Shipping Company AS, the owner of Skandi Vinland. The company was later merged into DOF Installer ASA.

Subsea market risk

The oil price is the main driver for the Exploration and Production spending (E&P spending). In 2017 the oil price has been rising improving the sentiment in our industry. The

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Dated Brent oil price reached a low of USD 43.03 per barrel in June before the price started to recover and ended the year at USD 67.07 per barrel. The average Dated Brent price for the year was USD 54.22 per barrel against USD 43.37 per barrel in 2016. The strengthening of the oil price during the year has created a more positive market sentiment, and the oil companies have started to increase their E&P spending after three consecutive years of reduction.

The seasonality due to winter on the northern hemisphere combined with lower demand from the oil companies led to a weak market in the North America region during the first quarter and a more volatile peak season than normal in both the North America and the Atlantic region. In Asia Pacific the region suffered from a weak third quarter, whilst the Brazilian market suffered from lower demand and challenging contracting terms.

Towards the end of the year the tendering activity increased and this trend has continued in 2018. Despite the improving fundamentals, the markets for the Company’s services are still challenging with overcapacity of vessels and continued pressure on terms and rates

Financial risk

The Company’s financing, capital structure and liquidity are monitored closely. The Company has continued the focus on strenthening the balance sheet. The Company’s loan agreements contain financial covenants, and the Company complied with all financial covenants in 2017.

The Company has global operations, and a significant portion of the income and costs is denominated in foreign currencies, mainly USD and CAD. Fluctuations in foreign exchange rates against the NOK have impact on the Company’s financial statements.

The Company aims to be naturally hedged by matching income and costs for the relevant currencies. In addition, the Company has an active hedging strategy using derivatives to reduce the exchange rate risk exposure.

The Company’s debt is denominated in NOK and CAD, and the Company has both fixed and floating interest rate loans. An active hedging strategy has been adopted where the interest rate risk exposure is partly hedged by using interest rate derivatives and fixed interest rate loans with term to maturity of up to 12 years. Interest periods for the floating interest rate loans are from one to six months. The fixing of interest rates for longer periods and changing of loan currencies is continuously evaluated.

Historically, the portion of receivables not being collectable has been low, and the Company continuously evaluates the

financial strength and credit worthiness of customers and suppliers. In addition, policies and guidelines for follow-up and collection of outstanding receivables have been established.

The Company has limited direct financial exposure to changes in the prices of commodities and raw materials, such as oil and refined oil products. To the extent the Company has such risk exposure, it is managed and partly hedged through clauses in the Company’s contracts. The oil price is an important driver for the global demand for vessels and services within the subsea industry. The development of the oil price over the last couple of years has reduced the demand for both subsea vessels and services.

External environment

The DOF Subsea Group’s environmental management system ensures that the operations are effectively managed and that continuous improvement of environmental performance is achieved. The energy efficiency program is continuously challenged with the aim to improve environmental performance.

During 2017, the focus on energy efficiency has increased by implementing key performance indicators relating to environmental performance of the vessel operations. Onshore the focus has increased by introducing KPIs regarding energy consumption and CO2 emissions. During the year, there have been no spills from the vessels to the external environment that require reporting to local government or international bodies.

The Group promotes transparency and standard disclosure of information relating to key sustainability aspects. As part of this, the Group reports per the Carbon Disclosure Project and the Global Reporting Initiative. For detailed reporting on these matters please find the Group’s Sustainability Report on www.dof.com.

For further reading please also refer to the Annual Report for the DOF Subsea Group on www.dofsubsea.com.

Corporate Governance

Risk management and internal control is based on principles established in the Norwegian Code of Practice for Corporate Governance, available at www.nues.no.

The Board of Directors is responsible for ensuring a satisfactory monitoring of risk and internal control. This includes focus on business opportunities and establishing cost-efficient solutions. In addition, focus on operational and


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financial reporting provides comprehensive information for decision-making and risk assessment.

Every year, the Management carries out a detailed and thorough budgeting process. The next year’s budget is submitted to and approved by the Board of Directors. The Board of Directors receives weekly, monthly and quarterly operational and financial reports, including information on investments, financing, cash flow, liquidity, HSEQ, HR, Tax and Legal performance. In addition, a five-year financial forecast and information on market assumptions is received on a regular basis.

The Board of Directors is of the opinion that the Company’s reporting procedures and quality are at a high standard and sufficient to fulfil the requirements of the Board of Directors for risk management and financial control. For further details on Corporate Governance, see the Corporate Governance section of the Annual Report for the DOF Subsea Group.

Board of Directors and employees

The Board of Directors of DOF Installer ASA consists of two men and one woman. The Company had no employees at year-end 2017, and the Managing Director is employed in DOF Subsea AS.

Shareholders

The Company has 46 shareholders, where DOF Subsea AS is the main shareholder with 84.92% of the shares; the other main shareholders are HBK Master Fund L.P., Meteva AS and Tine Pensjonskasse.

At the Company’s ordinary general meeting in May 2017, the Board of Directors was granted authorisation to acquire up to 10% of the Company’s shares and authorisation to increase the Company’s share capital by up to NOK 3.4 million by subscription and issue of up to 3.4 million shares. As per the date of publication for this report this authorisation has not been used. Reference is made to the minutes of the ordinary general meeting in May 2017 for details on the authorisation.

Presentation of Company accounts

DOF Installer ASA has prepared the financial statement in accordance with the Norwegian Accounting Act § 3-9 and Finance Ministry’s prescribed regulations on simplified IFRS.

Going concern

In accordance with the Norwegian Accounting Act § 3-3a, the Board of Directors confirms that the financial statements have been prepared under the assumption of going concern. This assumption is based on the budget for the year 2018 and the Company’s contracts. The Company’s economic and financial position is acceptable.

Financial statement

For 2017, the Company achieved an operating revenue of NOK 206 million compared to an operating revenue of NOK 193 million for 2016. Operating profit before depreciation (EBITDA) was NOK 158 million (NOK 178 million), whilst operating profit after depreciation (EBIT) was NOK 107 million (NOK -109 million). The depreciation and impairment amounted to NOK 51 million (NOK 286 million).

NOK million 2017 2016 Change Operating revenue 206 193 7%

EBITDA 158 178 -11%

Depreciation and impairment -51 -286 -82%

EBIT 107 -109 198%

Net financial loss was NOK 72 million (loss of NOK 44 million in 2016), and the profit before tax was NOK 35 million (loss of NOK 152 million in 2016). The profit for the period was NOK 35 million (loss of NOK 152 million).

Total assets were NOK 2 587 million (NOK 2 185 million), where non-current assets amounted to NOK 2 141 million (NOK 1 615 million). Current assets were NOK 446 million (NOK 570 million), of which NOK 359 million (NOK 414 million) was cash and cash equivalents.

Total equity was NOK 1 295 million (NOK 1 259 million). Non-current liabilities were NOK 1 071 million (NOK 775 million). Current liabilities were NOK 222 million (NOK 150 million), of which NOK 184 million (NOK 144 million) was current portion of debt.

NOK million 2017 2016 Change Tangible assets 2 141 1 615 33%Cash and cash equivalents 359 414 -13%Total equity 1 295 1 259 3%

Net interest bearing debt 884 362 144%

Net cash flow from operating activities during the year was NOK 7 million (NOK 48 million). Cash flow from investing activities during the year was NOK 41 million (NOK -170



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million), while the cash flow from financing activities was NOK -140 million (NOK -28 million).

Allocation of the result

The Company’s profit for the year was NOK 35 million in 2017. The Board of Directors recommends that the profit for the year is allocated to other equity.

Outlook and events after period end

The Board of Directors confirms that, to the best of its knowledge, the information contained in the Annual Report, gives a true and fair view of the Company’s results, financial position, assets and liabilities.

The Company’s vessels will be chartered to the DOF Subsea Group in 2018, where they will be utilised in the Subsea/IMR Projects segment. Skandi Hercules will continue to do construction work for the Asia Pacific region, while Skandi Skansen will finalise the work for TechnipFMC and thereafter work for the DOF Subsea Group in the Atlantic region. Skandi Vinland will be on hire to DOF Subsea Canada where it will be utilised on the 10-year Husky Energy IMR contract.

For 2018, the Board of Directors expects the market conditions to remain challenging, and the timing of market recovery remains uncertain. However, with an oil price stabilising above USD 60 per barrel, oil companies have increased their projects sanctioning and tendering activity, which give causes to believe that the activity within the industry will gradually increase.


Storebø, 9 April 2018

The Board of Directors of DOF Installer ASA

Mons S. Aase Hilde Drønen Jan Nore Marianne Møgster Chairman Director Director Managing Director

DOF Installer ASA Amounts in NOK million

DOF Instal ler ASA Annual Report | 2017 FINANCIAL STATEMENTS

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Financial statementsDOF Installer ASA



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Statement of comprehensive income

Note 2017 2016

Operating revenue 5, 16 206 193

Other operating expenses 16, 17 -47 -15

Operating profit before depreciation (EBITDA) 158 178

Depreciation and impairment 9 -51 -286

Operating profit (EBIT) 107 -109

Financial income 6 6 8

Financial expenses 6, 16 -63 -53

Realised net gain / loss on derivative instruments and currency position 6 -5 -8

Unrealised net gain / loss on derivative instruments and currency position 6 -11 9

Net financial income / loss -72 -44

Profit / loss before tax 35 -152

Income tax expense 7 - -

Profit / loss for the year 35 -152

Other comprehensive income / loss, net of tax - -

Total comprehensive income / loss for the year, net of tax 35 -152



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Statement of financial position

Note 2017 2016

Assets

Tangible assets 4, 9 2 141 1 615

Non-current assets 2 141 1 615

Trade receivables 10 35 -Current receivables from Group companies 15, 16 50 154Other current receivables 2 2Total current receivables 87 156

Unrestricted cash and cash equivalents 12 359 414Cash and cash equivalents 359 414

Current assets 446 570

Total assets 2 587 2 185



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Statement of financial position

Note 2017 2016

Equity and liabilities

Paid-in equity 8, 11 1 106 1 106Other equity 188 153Total equity 1 295 1 259

Debt to credit institutions 12, 15 1 071 764Financial non-current derivatives 14, 15 - 11Non-current liabilities 1 071 775

Current portion of debt 12, 15 184 144Trade payables 15 1 1Current liabilities to Group companies 15, 16 33 6Financial current derivatives 4 -Current liabilities 222 150

Total liabilities 1 293 926

Total equity and liabilities 2 587 2 185

Storebø, 9 April 2018

The Board of Directors of DOF Installer ASA

Mons S. Aase Hilde Drønen Jan Nore Marianne Møgster Chairman Director Director Managing Director



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Statement of changes in equity

Changes in equity Share capital Share premium Other equity Total equity

Equity at 01.01.2017 34 1 072 153 1 259

Profit for the year - - 35 35Other comprehensive income - - - -Total comprehensive income / loss for the year - - 35 35

Merger - - 1 1

Equity at 31.12.2017 34 1 072 188 1 295

Equity at 01.01.2016 34 1 072 407 1 514

Profit for the year - - -152 -152Other comprehensive income - - - -Total comprehensive income / loss for the year - - -152 -152

Dividend - - -102 -102

Equity at 31.12.2016 34 1 072 153 1 259



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Note 2017 2016

Operating profit (EBIT) 107 -109Depreciation and impairment 9 51 286Change in trade receivables -35Change in trade payables - -75Changes in other working capital -62 -4Exchange rate effect on operating activities 1 -1Cash flow from operating activities 62 97

Interest received 6 8Interest paid -61 -57Net cash flow from operating activities 7 48

Purchase of tangible assets 9 -10 -50

Purchase of customer contract -69 -

Net cash flows from other non-current receivables 120 -120Cash flow from investing activities 41 -170

Proceeds of non-current debt 10 206Installments on non-current debt 13 -150 -132Dividend paid 11 - -102Cash flow from financing activities -140 -28

Net change in cash and cash equivalents -92 -149

Cash and cash equivalents at 01.01.2017 414 570

Cash and cash equivalents from aquisition 40 -Exchange rate gain / loss on cash and cash equivalents -4 -7

Cash and cash equivalents at 31.12.2017 359 414


Statement of cash flows

On 22 May, DOF Installer ASA purchased all shares in Canadian Subsea Shipping Company AS, and later in May the Canadian Subsea Shipping Company AS took delivery of the vessel Skandi Vinland. In October 2017 Canadian Subsea Shipping Company AS was merged into DOF Installer ASA, and the effective accounting date for the merger was set to 31 May 2017. Thus, cash effects which occured in Canadian Subsea Shipping Company AS before 31 May 2017, including the installment paid to the yard and proceeds of debt related to the delivery of newbuild Skandi Vinland, will not be reflected in the Statement of cash flows for DOF Installer ASA.



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1 Corporate information

DOF Installer ASA (the Company) was founded 4th of December 2006. The main purpose of the Company is to conduct business within the shipping-, offshore and energy sectors. The Company owns modern high-end subsea and AHTS vessels: Skandi Hercules, Skandi Skansen and Skandi Vinland.

The office address for the Company is at Storebø, in the municipality of Austevoll, Norway.

In May, DOF Installer ASA purchased all shares in Canadian Subsea Shipping Company AS. Later in May, Canadian Subsea Shipping Company AS took delivery of the vessel Skandi Vinland. The vessel was financed by non-current debt. In October 2017 a merger of the companies was completed. Effective accounting date for the merger was set to 31 May 2017. The merger is performed based on continuity of interest principle.

DOF Subsea AS owns 84.92% of the shares, with the remaining 15.08% of the shares held by 46 shareholders. Of that HBK Master Fund L.P. owns 4.43%, Meteva AS 1.86%, Tine Pensjonskasse 1.50%, Clipper AS 1.08% and Microg AS 1.08 %. Other shareholders own less than 1.00%.

2 Accounting policies

Summary of significant accounting principles

The financial statements of the Company have been prepared in accordance with the Norwegian accounting act § 3-9 and Finance Ministry’s prescribed regulations on simplified IFRS. Principally this means that recognition and measurement complies with the International Accounting Standards (IFRS) and presentation and note disclosures are in accordance with the Norwegian Accounting Act and generally accepted accounting principles. The financial statements have been prepared in accordance with the historical cost convention with the following exception: financial instruments at fair value through profit or loss are subsequently carried at fair value.

The fiscal year is the same as the calendar year.

Going concern

The Company has a satisfactory economical and financial position which provides the basis for the going concern assumption in accordance with the Norwegian Accounting Act § 3-3a.

Group companies

DOF ASA companies are defined as DOF ASA and its subsidiaries excluding companies within the DOF Subsea Group. DOF Subsea AS companies are defined as DOF Subsea AS and its subsidiaries. Group companies are defined as both DOF ASA and DOF Subsea AS companies.

Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors and Managing Director.

The Company operates in the Subsea/IMR project market through third parties.

Conversion of foreign currency

a) Foreign currency

The functional currency is NOK. The statements are presented in NOK million.

b) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the conversion at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income as financial income or expense.

Classification of assets and liabilitiesAssets are classified as current assets when:

the asset forms part of the entity’s operating cycle, and is expected to be realised or consumed over the course of the entity’s normal operations; or

the asset is held for trading; or

the asset is expected to be realised within 12 months of statement of financial position date

All other assets are classified as non-current assets.

Liabilities are classified as current when:

the liability forms part of the entity’s operating cycle, and is expected to be realised or consumed over the course of the entity’s normal operation; or

the liability is held for trading; or

settlement of the liability has been agreed upon within 12 months of the statement of financial position date; or

the entity does not have an unconditional right to postpone settlement of the liability until at least 12 months after statement of financial position date.

All other liabilities are classified as non-current liabilities.

Trade receivablesTrade receivables are amounts due from customers for services performed in the ordinary course of business. If collection is expected within one year or less (or in the normal operating cycle of the business if longer), they are classified as current assets. If not, they are presented as non-current assets. Accrued, but not invoiced revenues are also classified as trade receivables.

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost. Discounting is ignored if insignificant. A provision for impairment of trade receivables is made when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables. The amount of the provision is the difference between the asset’s carrying value and the estimated recoverable value, which is the present value of estimated future cash flows, discounted at the original effective interest rate. Changes to this provision are recognised in the statement of comprehensive income.

Tangible assetsTangible assets are recognised at cost less accumulated depreciation and accumulated impairment loss. The cost of tangible assets comprises

Notes to the financial statements



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its purchase price, borrowing cost and any directly attributable costs of bringing the asset to operating condition. If significant, the total expenditure is separated into separate components which have different expected useful lives.

Depreciation is calculated on a modified straight-line basis over the useful life of the asset. Depreciable amount equals historical cost less residual value.

Depreciation commences when the asset is ready for use. The useful lives of tangible assets and the depreciation method are reviewed periodically in order to ensure that the method and period of depreciation are consistent with the expected pattern of financial benefits derived from the assets.

When tangible assets are sold or retired, their cost and accumulated depreciation and accumulated impairment loss are derecognised and any gain or loss resulting from their disposal is included in the statement of comprehensive income.

For vessels, residual value is determined based on estimated fair value at the end of their useful lives. According to the Company’s strategy, it intends not to own vessels with an age above 20 years. For further information please refer to note 4 ́ accounting estimates and assessments .́

Ordinary contract costs and ordinary costs related to mobilisation are capitalised and amortised on a systematic basis consistent with the contract period. Contract period is based on best estimates taken into consideration, the initial agreed period with probability for optional periods. A probability judgment is performed in assessing whether the option period shall be included in the contract period.

Impairment of assetsAll assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Whenever the carrying amount of an asset exceeds its recoverable amount, an impairment loss is recognised in the statement of comprehensive income. The recoverable amount is the higher of an asset’s net selling price and value in use. Where there are circumstances and evidence that impairment recognised in previous years no longer exists or has decreased, reversals of impairment will be recognised. For further information on the calculation see note 4 ‘Accounting estimates and assessments’.

Periodic maintenanceOrdinary repairs and maintenance costs of assets are charged to the consolidated statement of comprehensive income as they are incurred.

The cost of major modernisation, upgrading and replacement of parts of property, plant and equipment is included in the asset’s carrying amount, however only when it is probable that the Company will derive future financial benefits from upgrading the assets. See note 4 ‘Accounting estimates and assessments’ for further discussion on periodic maintenance.

DebtDebt is recognised initially at fair value, net of incurred transaction costs. Debt are subsequently carried at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the statement of comprehensive income over the period of the debt using the effective interest method.

Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it

is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

Interest expenses related to the borrowing are recognised as part of cost of an asset when the borrowing costs accrue during the construction period of a qualifying asset. Borrowing costs are capitalised until the time the fixed asset has been delivered and is ready for its intended use.

Debt is classified as current liabilities unless the debt involves an unconditional right to postpone payment of the liabilities for more than 12 months from the statement of financial position date. The current portion of such debt includes undiscounted instalments due the next 12 months.

ProvisionsProvisions are recognised when, and only when, there is an obligation (legal or constructive) as a result of a past event, it is probable (more than 50%) that a settlement will be required and a reliable estimate can be made of the obligation amount.

For onerous contracts provisions are made when unavoidable cost of meeting the obligations under the contract exceed the economic ben-efit to be received under the contract. The unavoidable costs under the contract are the lower of the cost of fulfilling the contract and any com-pensation or penalties arising from failure to fulfil the contract. Una-voidable cost are costs that would not incur for the entity if it did not have the contract.

Provisions are reviewed at each consolidated statement of financial po-sition date and adjusted to the best estimate. When timing is significant for the amount of the obligation, it is recognised at present value. Sub-sequent increases in the amount of the obligation due to interest accre-tion are reported as interest costs.

Revenue recognitionThe Company recognises income when it is probable that future economic benefits will flow to the entity and when the amount of income can be reliably measured. Operating revenue is shown net of discounts, value-added tax and other taxes on gross rates.

The Company’s operational vessels are mainly leased out on charter parties, bare-boat charter or time charter, based on day-rates. At time-charter, customers lease the vessels with crew included. The charterer determines (within the contractual limits) how the vessel is to be utilised. There is no time charter income when the vessels are off-hire.

Lease income from the lease of vessels is recorded on a linear basis over the lease period. The lease period starts from the time the vessel is made available to the customer and expires on the agreed return date. Lease of crew and compensation for coverage of other operating costs, are recorded over the contract period on a linear basis.

Current and deferred income taxThe Company is compliant to special tax rules for ship owners in the Norwegian Taxation Act (§ 8-10 - § 8-20). The Norwegian tonnage tax scheme is approved as legal state aid under the EU guidelines for a 10-year period, from 1 January 2018 until 31 December 2027. These tax rules stipulate certain requirements which will have to be met. A failure to meet such requirements may have an adverse effect on the effective tax rate of the Company.

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements per IAS 12 ‘Income taxes’.



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Deferred tax assets are recognised in the statement of financial position on the basis of unused tax losses carried forward or deductible temporary differences to the extent that it is probable there will be sufficient future earnings available against which the loss or deductible can be utilised.

The tonnage tax is payable, which is determined based on the vessel’s net weight. This tonnage tax is presented as an operating expense.

Derivative financial instruments and hedging activities

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured on a continuous basis at their fair value. The method of recognising the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. The Company has one type of hedging relationship that are not documented as hedge accounting and measured at their fair value with gain or loss recognised immediately in the statement of comprehensive income.

The fair values of the derivative instrument used for hedging purposes is disclosed in note 14 and 15.

The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining maturity of the hedged item is more than 12 months, and as a current asset or liability when the remaining maturity is less than 12 months. Trading derivatives are classified as a current asset or liability.

The Company currently applies hedge accounting on one type of cash flow hedges; the hedging of interest rate risk on non-current debt.

The Company documents at the inception of the transaction the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Company also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items.

Events after period endNew information regarding the Company’s financial position at period end is included in the financial statements. Events occurring after period end, which do not impact the Company’s financial position, but which have a significant impact on future periods, are presented in the notes to the accounts.

Use of estimatesThe preparation of financial statements in conformity with simplified IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies. Changes in accounting estimates are recognised for the period in which they occur. If the changes also apply to future periods, the effect of the change is distributed over current and future periods.

Statement of cash flowsThe statement of cash flow is prepared in accordance with the indirect model.

New standards, amendments and interpretations not yes adoptedIFRS 15 ‘Revenue from Contracts with Customers’ deals with revenue recognition and establishes principles for reporting useful information

to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The new standard is based on the principle that revenue is recognised when control of a good or service transfers to a customer – so the notion of control replaces the existing notion of risks and rewards. Revenue is recognised when a customer obtains control of a good or service and thus has the ability to direct the use and obtain the benefits from the good or service. The standard replaces IAS 18 ‘Revenue’ and IAS 11 ‘Construction contracts’ and related interpretations. The standard is effective for annual periods beginning on or after 1 January 2018. The standard was approved by EU 29 October 2016.

The Company has finalised an internal project regarding the implementation of IFRS 15 ‘Revenue from contracts with customers’. The main purpose of the project was to assess the impact of applying the new standard on the Company’s Financial Statements to ensure a good implementation process. All contracts ongoing at year-end are evaluated based on the five step model described in IFRS 15’ Revenue from contracts with customers’. The purpose of the evaluation was to identify the effect on the equity 1 January 2018.

The Company’s revenue stream comes from Time Charter operations. Time Charter revenue is based on contracts were the Company delivers a vessel (including crew) to the client. A Time Charter contract consist of a leasing component (the Bareboat element) and a service component. The service component is within the scope of IFRS 15, while the leasing component is within the scope of IAS 17/IFRS 16. Both the service component and the leasing component is recognised as revenue over the lease period on a straight line basis. Implementation of IFRS 15 will not change the revenue recognition for this revenue stream.

Despite no chane in the main recognition method, the Company has identified that the following areas might affect new contracts:

- The application of IFRS 15 ‘Revenue from contracts with customers’ may result in identification of several separate performance obligations, which could affect the timing of revenue recognition in relation to the separate performance obligations.

- Certain cost to fulfil a contract will be recognised as an asset under IFRS 15 ‘Revenue from contracts with customers’. Assets recognised under IFRS 15 will be amortised on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the assets relates.

The Company will apply IFRS 15 ‘Revenue from contracts with customers’ retrospectively with the cumulative effect of initial application recognised as an adjustment to equity as of 1st January 2018. The modified retrospective method will only be applied retrospectively on contracts that are not completed by 1 January 2018. Based on the assessment done, the Company does not expect any adjustment to the equity as of 1 January 2018.

3 Financial risk management

The Company’s operations include various kinds of financial risk: market risk (including foreign exchange risk, actual interest rate risk, floating rate risk and price risk), credit risk and liquidity risk. The Company’s governing risk management strategy focuses on minimising the potential negative effects of the Company’s results. The Company consider at all times use of financial derivatives to hedge against certain types of risk.

The Company’s risk management is conducted in line with guidelines approved by the Board of Directors. Accordingly, financial risk is



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identified, evaluated and hedged if appropriate. The Board of Directors issues written policies for governing risk management and defines principles for specific areas such as the foreign exchange risk, interest risk, credit risk, use of financial derivatives and other financial instruments. The Company has limited direct exposure to changes in raw material prices.

Financial derivativesThe Company is exposed to fluctuations in interest rates and currencies. To some extent the Company uses financial derivatives to reduce these risks. However, the Company does not use financial derivatives linked to ordinary activities such as trade receivables, trade payables or similar.

Foreign exchange risk The Company’s reporting currency is NOK. Foreign exchange risk arises when future commercial transactions, contractual obligations and liabilities are denominated in a currency that is not the functional currency. The Company aims to achieve a natural hedge between cash inflows and cash outflows and manages remaining foreign exchange risk arising from commercial transactions, assets and liabilities by forward contracts and similar instrument as appropriate.

Interest risk The Company’s existing debt arrangements are long term loans partly at floating and fixed interest rates. Movements in interest rates will have effects on the Company’s cash flow and financial condition. The Company’s policy is to maintain part of its debt at fixed rates.

The Company manages its cash flow interest risk by using floating-to-fixed interest rate swaps. Such interest swaps have the economic effect of conversion from floating interest rates to fixed interest rates. Under the interest rate swaps, the Company agrees with other parties to exchange, at specified intervals the difference between fixed interest rates and floating interest rates calculated by reference to the agreed amounts.

Credit and liquidity risk Credit and liquidity risk arises from cash and cash equivalents, financial derivative instruments and deposits with banks as well as credit exposures to clients. The Company has a policy of limiting the credit exposure to any single financial institution and bank, and actively manages its exposure in order to achieve this.

Credit exposures are mainly to clients that traditionally have good financial position to meet their obligations. The Company’s credit risk to clients is therefore considered low and historical losses have been low. Other noncurrent receivables are mainly to DOF ASA companies and companies in DOF Subsea Group. The Company is well informed about credit risks related to these positions. Latest changes in the market condition increase these risks, but they are still considered to be acceptable.

Liquidity risk management implies maintaining sufficient cash and marketable securities, the available funding through committed credit facilities and the ability to close market positions. The Company aims to maintain flexibility in its liquidity by keeping credit lines available.

The Company’s business is capital intensive and the Company may need to raise additional funds through public or private debt or equity financing to execute the Company’s strategy and to fund capital expenditures. The Company’s loan agreements include terms, conditions and covenants.

The Company has routines to report cash flow forecasts on a regular basis in order to monitor the Company’s future cash positions.

Fair values Fair value of forward exchange contracts is calculated based on the midpoint of the relevant yield curve. Fair value of interest rate contracts is calculated as the present value of the estimated futures cash flows based on observables yield curves.

4 Accounting estimates and assessments

Depreciation of vesselsThe carrying amount of the Company vessels represents 83% of the total statement of financial position. Consequently, policies and estimates linked to the vessels have a significant impact on the Company’s financial statements. Depreciation is calculated on a modified straight-line basis over the useful life of the asset. Depreciable amount equals historical cost less residual value. Please see note 2 ’Accounting policies’ for further information about tangible assets.

Useful life of vessels

The depreciation of vessels depends on the vessels’ estimated useful lives in the Company. Estimated useful life is 20 years based on strategy, past experience and knowledge of the types of vessels the Company owns. There will always be risk of events like breakdown and obsolescence which may result in a shorter useful life than anticipated. From time to time the Company may own vessels older than 20 years. The useful life will then be estimated individually.

Residual value of vessels

The level of depreciation depends on the calculated residual value. Residual value is determined based on the estimated fair value at the end of the asset’s useful life. According to the Company’s strategy, the policy is not to own vessels with an age above 20 years. Consequently, the residual value differs from salvage value, and the Company has to estimate the residual value of the vessels when they reach an age of 20 years. The estimate of residual value is based on a market valuation of a charter free vessel, and the current fair value forms a basis for the estimate. However, this fair value is discounted to reflect the fair value of the vessel as if it was of an age and in the condition expected at the end of its useful life (20 years). The evaluation of residual value is done on a yearly basis.

Useful life of investments related to periodic maintenance

Periodic maintenance is related to major inspection and overhaul costs which occur at regular intervals over the life of an asset. The expenditure is capitalised and straight-line depreciated until the vessel enters the next periodic maintenance. When new vessels are acquired, a portion of the cost price is classified as periodic maintenance based on best estimates. Intervals between periodic maintenance are calculated on the basis of past experience. The estimated life of each periodic maintenance program is 5 years.

Impairment of Vessels

For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units, “CGU”). Each vessel is considered as a separate CGU.

For vessels, fair value less cost to sell is based on an average of the brokers’ estimates, taken into account sales commission. All vessels in the Company are assessed for indications of impairment by obtaining independent quarterly broker estimates. The broker’s estimates are



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based on the principal of “willing buyer and willing seller”. Broker estimates includes mounted equipment and assume that the vessels are without any charter contracts (i.e. charter-free basis). The Company adjusts for positive or negative value in associated contracts. Due to a limited number of vessel transactions in the current market the brokers’ estimates only to a limited extent represent the results of transactions in the market. Because of this, the broker estimates are more influenced by the judgement of each broker. For this reason, the Company has sought to substantiate the broker valuations, inter alia with value in use calculations or tests of reasonableness of implicit rates and other assumptions derived from the valuations. The Company has deemed it necessary to perform separate calculations for all vessels to support the broker estimates. In addition, conducted sales transactions during the year are reviewed and compared to broker estimates.

After the evaluation, the Company has concluded that the average of the broker estimates is considered reliable.

When the broker valuations are substantiated with value in use calculations, estimated cash flows are based on next year’s budgets per vessel, and forecasted earnings going forward. The budget process is a detailed and thorough bottom-up budgeting process at all levels of the organisation, with approval procedures on all levels. Estimated

future cash flows are based on historical performance per vessel, in combination with current market situation and future expectations. Critical assumptions in the assessment are related to income rates, utilisation, operational and capital expenditure.

For vessels fixed on firm long-term contracts, the assumption is that the contracts run up until end of contract. Options held by the customers are not assumed to be exercised, unless the options are at or below current market rates. For vessels without contract, assumptions derived from the evaluation of broker estimates, combined with other market information are considered when estimating future revenues. It is expected to be a weak market the next 2-3 years, and a gradually normalise to historical average levels thereafter.

The Weighted Average Cost of Capital (WACC) is used as a discount rate, and reflects a normalised capital structure for the industry. The WACC represents the rate of return the Company is expected to pay to its sources of finance for cash flows with similar risks. Cash flows are calculated after tax and discounted with an after tax discount rate.

Sensitivity analysis or stress tests have been carried out for the main variables in the assessment. This includes changes to key variables such as broker estimates, operating revenue, operating expenses and the discount rate.

5 Operating revenue

Geographical distribution of operating revenue 2017 Norway Singapore Canada UK Total

Distribution of operating revenue 44 103 26 33 206

Geographical distribution of operating revenue 2016 Norway Singapore Canada UK Total

Distribution of operating revenue 98 95 - - 193

The Company’s vessels operate in the Subsea/IMR Projects market through third parties.



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6 Financial income and expenses

Financial income and expenses 2017 2016

Interest income 6 8Financial income 6 8

Interest expenses -60 -52Other financial expenses -3 -1Financial expenses -63 -53

Realised gain / loss on currencies -5 -8Realised gain / loss on financial instruments -5 -8

Unrealised gain / loss on non-current debt -19 -Unrealised gain / loss on derivative financial instruments 7 9

Unrealised gain / loss on currencies 1 -

Unrealised gain / loss on financial instruments -11 9

Net financial income / loss -72 -44

7 Tax

Financial income within tonnage tax regime 2017 2016

Net taxable financial income -11 -7

Basis for deferred tax

Tax loss carry forward -117 -106Tax loss not included as deferred tax asset 117 106Basis for calculating deferred tax / tax asset (-) - -

The Company is registered within the shipping tonnage tax regime. It is unlikely that the Company will have a future taxable income due to tonnage

tax regulation and current tax loss carry forward. Therefore deferred tax asset is not recognised in the statement of comprehensive income.

The Company has temporary differences relating to effects on financial instruments. The tax effects of unrealised financial items are dependent on

the future relation between financial assets and total assets. This future relation cannot be estimated reliably.

8 Earnings per share

Basis for calculating earnings per share 2017 2016

Profit / loss attributable to shareholders 35 -152Weighted average number of outstanding shares 33 931 000 33 931 000Weighted average number of outstanding shares, diluted 33 931 000 33 931 000Basic and diluted earnings per share (NOK) 1.02 -4.48



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9 Tangible assets

2017 VesselsPeriodical

maintenance Total

Cost at 01.01 2 049 43 2 092

Additions 10 - 10Additions from aquisition 462 36 498Customer contract 69 - 69Cost at 31.12 2 591 79 2 670

Depreciation at 01.01 -229 -8 -237Depreciation for the year -38 -12 -50Depreciation at 31.12 -264 -20 -287

Impairment at 01.01 -240 - -240

Impairment for the year -1 - -1

Impairment 31.12 -241 - -241

Book value at 31.12 2 082 59 2 141

Asset lifetime (years) 20 2.5-5Depreciation schedule *) Linear

2016 VesselsPeriodical

maintenance Total

Cost at 01.01 2 026 15 2 041Additions 23 27 50Cost at 31.12 2 049 43 2 092

Depreciation at 01.01 -190 - -190

Depreciation for the year -39 -8 -46Depreciation at 31.12 -229 -8 -237

Impairment for the year -240 - -240

Impairment 31.12 -240 - -240

Book value at 31.12 1 580 35 1 615

Asset lifetime (years) 20 2.5-5 Depreciation schedule *) Linear *) Residual value varies based on market valuation of the vessel

AdditionsIn May, DOF Installer ASA purchased the shares in Canadian Subsea Shipping Company AS. Later in May, Canadian Subsea Shipping Company AS took delivery of the vessel Skandi Vinland. The vessel was financed by non-current debt. In October 2017 a merger of the companies was completed. Effective accounting date for the merger was set to 31 May 2017, and the merger effect is presented separately above.

Customer contract consists of positive contractual value, identified in the purchase price allocation. The contract value is depreciated using the straight-line method.

Impairment

In first quarter 2017 DOF Installer ASA faced lower market values for the vessels, and thus an impairment of NOK 25 million was recognised. The market has stabilised during the year. An impairment test for vessels has been performed, and based on the impairment test performed at year-end, impairments were reversed with NOK 24 million. For further information please see note 4 ‘Accounting estimates and assessments’.

Sensitivity analysis of impairmentA 10% drop in broker estimates from 31 December 2017 will bring broker value below book value with NOK 156 million for the vessels in the Company. This effect might result in an impairment loss for the Company, however an impairment test will in addition consider possible positive contract values and other elements in a value in use calculation.

The Company receives broker estimates in NOK. All sales transactions of vessels in 2017 and 2016 in the DOF Subsea Group have been conducted in USD. The USDNOK exchange rate may therefore impact the value of the vessels indirectly, depending on which currency the Company’s revenue is denominated in. When testing the reasonableness of broker estimates, the Company has concluded that the implied rates and utilisation in the broker estimates are within the range of budgets and forecasts. While testing the reasonableness of the broker estimates the Company has applied a nominal WACC after tax of 8.51%.



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DOF Installer has new vessels and as a result, the future cash flows for the vessels are long. The key assumptions in a discounted cash flow calculation of vessels are utilisation and vessel rates. Changes in these assumptions would have considerable effects on the net present value of the vessels.

10 Trade receivables

Trade receivables 2017 2016

Trade receivables at nominal value 17 -Accrued income not invoiced 18 -

Total trade receivables at 31.12 35 -

The amount of trade receivables outstanding is in USD and not due at 31.12 .

11 Share capital and share information

Share capitalThe share capital in the Company at 31.12.2017 was NOK 33 931 000 comprising 33 931 000 shares, each with a nominal value of NOK 1.

Shareholder overviewThe members of the Board of Directors and senior executives own shares in related companies, and thus have indirect ownership stakes in DOF Installer ASA. Please refer to the DOF ASA Annual Report for further information.

Shareholders at 31.12.2017 No. sharesShareholding / Voting shares Share capital (NOK)

DOF SUBSEA AS 28 815 295 84.92% 28 815 295HBK MASTER FUND L.P. 1 501 800 4.43% 1 501 800METEVA AS 630 000 1.86% 630 000TINE PENSJONSKASSE 508 190 1.50% 508 190CLIPPER A/S 366 100 1.08% 366 100MICROG AS 364 915 1.08% 364 915AUDLEY A/S 225 750 0.67% 225 750EUROMAR LQ AS 220 700 0.65% 220 700 PROFOND AS 179 000 0.53% 179 000SUNDT AS 140 000 0.41% 140 000SNIPTIND INVEST AS 129 560 0.38% 129 560 SECURUS AS 113 380 0.33% 113 380LANDE UTVIKLING AS 75 000 0.22% 75 000SLETHEI AS 69 500 0.20% 69 500HOLMEDAL 60 000 0.18% 60 000BARQUE AS 56 500 0.17% 56 500BYGGEVIRKSOMHET AS 56 000 0.17% 56 000EUROMAR AS 51 200 0.15% 51 200

Total 33 562 890 98.92% 33 562 890

Other 368 110 1.08% 368 110

Total number of shares 33 931 000 100% 33 931 000

Board of Directors Title

Mons S. Aase ChairmanJan Nore DirectorHilde Drønen Director

Management group Title

Marianne Møgster Managing Director



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12 Interest-bearing debt

Non-current interest-bearing debt 2017 2016

Debt to credit institutions 1 016 764Other non-current debt 55 -Total non-current interest-bearing debt 1 071 764

Current interest-bearing debt

Debt to credit institutions 172 132Total current interest-bearing debt 172 132

Total non-current and current interest bearing debt 1 243 896

Net interest bearing debt

Cash and cash equivalent 359 414

Interest-bearing receivable from Group companies - 120

Total net interest-bearing debt 884 362

Non-current interest-bearing debt in the statement of financial position includes amortised costs. Accrued interest expenses are excluded in the figures above.

Debt repayment profile 2018 2019 2020 2021 2022 Thereafter Total

Debt to credit institutions 169 169 238 156 156 309 1 197Other non-current debt 3 8 20 10 15 - 55Total repayment 172 177 258 166 171 309 1 251

The company has no guarantees to clients. Amortised costs are not included in the repayment profile above.

Liabilities secured by mortgage

Debt to credit institutions 1 185 896Book value of assets pledged as security 2 141 1 615

Non-current liabilities to credit institutions DOF Installer ASA financing agreements include the following covenants:

The Company shall have value adjusted equity to value adjusted assets of 25%

The Company shall have positive liquidity at all times

The Company shall have positive working capital at all times, excl. current portion of debt to credit institutions

The fair value of the Company’s vessels shall always be at least 110-130% of the outstanding loan amount

In addition to the above-mentioned financial covenants, the guarantor (DOF Subsea AS) on a consolidated basis should fulfill the following covenants:

The Group shall have value-adjusted equity to value-adjusted assets of at least 30%

The Group shall have a minimum book equity of at least NOK 3 000 million

The Group shall have free cash of minimum NOK 500 million (based on the proportionate consolidation method of accounting for joint ventures)

DOF Installer ASA and DOF Subsea AS are in compliance with all covenants.



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13 Fair value estimation

Total measurement level 1 (Quoted, unadjusted prices in active markets for identical assets and liabilities)

Fair value of interest-bearing debt is disclosed with face value of the bank loans.

Total measurement level 2 (Techniques for which all inputs which have significant effect on the recorded fair value are observable, directly and indirectly)

The fair value of forward exchange contracts is determined using the forward exchange rate at the statement of financial position date. The forward exchange rate is based on the relevant currency’s interest rate curves. The fair value of currency swaps is determined by the present value of future cash flows, which is also dependent on the interest rate curves.

Total measurement level 3 (Techniques which use inputs which have significant effect on the recorded fair value that are not based on observable market data)

The fair value of assets are assessed by obtaining independent quarterly broker estimates from recognised brokers within the industry. Net sales value is calculated based on an average of the brokers’ values, taken into account sales commission. This is further adjusted for any excess values in the incumbent contract.

14 Financial instruments and hedging activities

As of 31 December 2017 the Company held one interest rate swap. Interest rate swaps are utilised to manage interest rate risk by converting from floating to fixed interest rates. The full fair value of a hedging derivative is classified as non-current asset or liability if the remaining maturity of the hedged item is more than 12 months, and as a current asset or liability, if the maturity of the hedged item is less than 12 months. For further information on financial instruments, please refer to accounting policies.

The following table displays the fair value of financial derivatives as of 31 December 2017:

2017 2016

Non-current and current portion Measurement level Assets Liabilities Assets Liabilities

Interest rate swaps - cash flow hedges 2 - 4 - 11Total - 4 - 11

Non-current portion

Interest rate swaps - cash flow hedges 2 - - - 11Non-current portion - - - 11

Current portion - 4 - -

As of 31.12 the Company held the following interest rate derivatives:

Instruments Fixed rate Floating rate Notional amount Effective from Maturity date

31.12.2017 / 31.12.2016

Interest rate swaps - NOK 4.28% NIBOR 6m 250 2013 2018

As of 31.12 the Company held no foreign exchange rate derivatives.


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15 Financial instruments - by category

This note gives an overview of the carrying value of the Company’s financial instruments and the accounting treatment of these instruments. The table is the basis for further information regarding the Company’s financial risk.

31.12.2017

Financial instruments at fair

value through profit and loss

Financial instruments measured at

amortised costLoans and

receivables Total

Of which includedin interest

bearing debt

Assets

Trade receivables and other current receivables - - 85 85 -Unrestricted cash - - 359 359 359Total financial assets - - 444 444 359

Liabilities

Interest-bearing non-current liabilities - - 1 071 1 071 1 071Current portion of debt - - 184 184 184Current derivatives 4 - - 4 -Trade payables and other current liabilities - - 34 34 -Total financial liabilities 4 - 1 288 1 293 1 255

31.12.2016

Financial instruments at fair

value through profit and loss

Financial instruments measured at

amortised costLoans and

receivables Total

Of which included in interest

bearing debt

Assets

Other non-current receivables - - 120 120 120Trade receivables and other current receivables - - 34 34 -Unrestricted cash - - 414 414 414Total financial assets - - 568 568 534

Liabilities

Derivatives non-current 11 - - 11 -Interest-bearing non-current liabilities - 764 - 764 764Current portion of debt - 144 - 144 144Trade payables and other current liabilities - 7 - 7 -Total financial liabilities 11 915 - 926 908

Prepayments and non-financial liabilities are excluded from the disclosures above.

Trade receivables, other current receivables, and all interest-bearing debt are measured at amortised cost.

The carrying amount of cash and cash equivalents is approximately equal to fair value since these instruments have a short term to maturity. Similarly, the carrying amount of trade receivables and trade payables is approximately equal to fair value since they are entered into at standard terms and conditions.

For further information on financial instruments, please refer to accounting policies.


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16 Related parties

DOF ASA is the majority shareholder in DOF Subsea AS with a 64.9% holding. DOF Installer ASA is owned 84.92% by DOF Subsea AS.

DOF Management AS delivers ship management services on the Company’s vessels.

All balances with Group companies are due within 12 months.

Operating revenue 2017 2016

DOF Subsea Group 160 193Total 160 193

Operating expenses

DOF Subsea Group 16 14DOF Group 1 2Total 17 15

Net financial result


Current receivables from Group companies


The outstanding balance at 31.12 is mainly in USD and CAD.

Current liabilities to Group companies

DOF Subsea Group 32 6DOF Group 1 -Total 33 6

For further information see the financial statements for DOF ASA and DOF Subsea AS at www.dof.com.

17 Remuneration to Board of Directors, Executives and Auditor

The Company has no employees. No salaries or other remuneration have been paid to the members of the Board of Directors or Managing Director. No loans or guarantees have been provided for the members of the Board of Directors, Managing Director or close associates.

Specification of auditor’s fee (excl. VAT), amounts in NOK 2017 2016

Fee for audit of financial statements PWC 180 000 185 000

Fee for audit of financial statements KPMG 33 697 -

Fee for other attestation services PWC 29 600 -

Fee for other attestation services KPMG 123 000 -

Fee for other tax consultancy - -Total 366 297 185 000

18 Contingencies

The Company is not involved in any disputes or ongoing legal matters involving potential losses. No provision has been made for possible claims arising from the same.

19 Events occurring after period end

The contract with TechnipFMC for Skandi Skansen has been extended, and the vessel has been awarded an additional contract securing high utilisation for the vessel in the first four months of the year.

No other material events have taken place after period end.

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DOF Instal ler ASA Annual Report | DOF INSTALLER AS 2017 AUDITOR’S REPORT


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DOF Instal ler ASA Annual Report | DOF INSTALLER AS 2017 AUDITOR’S REPORT


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DOF Installer ASAAlfabygget

5392 StorebøNORWAY

Documents

ANNUAL REPORT 2017 - DOF Subsea€¦ · DOF Installer ASA Annual Report 2017 DOF INSTALLER ASA DIRECTORS REPORT DOF Installer ASA (the Company) was founded in December 2006. Since