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Annual Report
2019
BOA OCV AS
THIRDQUARTER
ContentCEO’s Report /3/Income Statement /6/Balance Sheet /7/Cash Flow Report /8/Notes /9/
BOA OCV THIRD QUARTER REPORT | 3
GENERAL INFORMATION
The unaudited interim report is prepared in accordance
with NGAAP
NATURE AND LOCATION OF ACTIVITIES
The company owns and subsequently charters out the
offshore construction vessels “Boa Deep C” and "Boa Sub
C". Management of the vessels is undertaken by Boa
Management AS.
REVIEW OF THIRD QUARTER 2019 ACCOUNTS
Operating income in the period was mNOK 47,1 (mNOK
60,1 in the same period in 2018).
EBITDA for the period was mNOK 5,1 (mNOK 14,2).
Operating expenses were mNOK 56,7 (mNOK 60,5).
Operating Profit/EBIT was mNOK -9,7 (mNOK -0,4).
Net financial items were mNOK -19,4 (mNOK -28,0).
Profit before tax was mNOK -29,1 (mNOK -28,4).
CASH FLOW IN THE PERIOD
Net cash flow from operating activities was mNOK 14,8
(mNOK 15,3 in the same period 2018).
Net cash flow from investing activities was mNOK -0,0
(mNOK -1,3).
Net cash flow from financing activities was mNOK 0,0
(mNOK 0,0).
Net change in cash was mNOK 14,8 (mNOK 14,0).
BALANCE SHEET 30.09.2019
Total assets per 30.09.2019 were mNOK 912 (mNOK 941
per 30.09.2018). Interest bearing debt was mNOK 1.276
(mNOK 1.159), and the equity mNOK -414 (mNOK -279).
Cash and Cash equivalents per 30.09.2019 were mNOK
92,9 (mNOK 117,5 per 30.09.2018).
FINANCIAL RISK
Interest risk
At present the interest cost is partly fixed and carried as
non-cash PIK interest in addition to set-offs for mandatory
redemption premium.
Currency risk
The company is exposed to currency risk as revenues and
costs are denominated in various currencies. Most of the
company’s earnings are in USD and EUR. However this
currency risk is to a certain degree reduced by the
company also having certain operating costs denominated
in USD and EUR. The company continuously monitors the
currency markets and reduces currency exposure when
appropriate by entering into forward agreements or other
financial contracts to reduce currency risk.
Liquidity risk
The company’s liquidity position of 30.09.2019 is mNOK
92,9. The company is financed by debt and equity. The
company has a bond of mNOK 1 200 listed at Oslo Stock
Exchange Nordic ABM with maturity date in 2020.
Credit risk
The company is exposed to the risk that the contracting
parties will not have the financial means to meet their
obligations. No agreements have been entered into or
other financial means established to minimize the
company’s credit risk.
EVENTS IN THE PERIOD
After settlement of one of the legal claims the
bondholders were 2nd July notified of a mNOK 25
distribution with settlement 8th July 2019.
EVENTS AFTER THE BALANCE SHEET DATE
The first component of the Rest Claims was distributed at
the rest Claim Payment date in October with mNOK 9,5
CEO's Report
BOA OCV THIRD QUARTER REPORT | 4
TBK ASSETS REALISATION
Boa Eiendom AS (Eiendom) has previously sold all
significant assets except their Boa Unsec’ bonds holding.
In August Eiendom received its part of the TBK Asset
realization (gross mNOK 6,5).
Det Nordenfjeldske Dampskibsselskab AS (NFDS),
former Boa Investment AS and the subsidiary
Nordenfjeldske Luftfart AS (NFL); NFL has previously
sold their shares in Helitrans AS and a total of five
helicopters. Three of the remaining helicopters were
redelivered from Helitrans AS in August and the
remaining five will be redelivered mid of January 2020.
One of the redelivered helicopters was sold in August,
and the sales process for the remaining seven continues.
The total distribution has so far been mNOK 87,75 and
the estimated total distribution from the TBK Asset
realization is still in the original range of mNOK 80-120.
FUTURE DEVELOPMENT
The medium to long-term outlook for Boa Offshore’s Oil &
Gas related business has improved somewhat during
2018 and 2019. However, activity has recovered from
very low levels and in a slower mode than anticipated 12
and 24 months ago.
It is expected to see increased sanctioning of offshore
field development projects in the remainder of 2019 and
in 2020. Rystad Energy estimates sanctioned Offshore
Projects of around USDbn 100, up from USDbn 70 in
2018 and below USDbn 50 in 2017. A further increase is
expected in 2020-23. This should lay basis for higher
offshore activity in the years from 2021. The oil price
volatility and increased global macro-economic
uncertainty experienced over the last 6 months has put
some more risk to this picture. The short-term outlook
remains challenging as demand is recovering from very
low levels and need to catch up with a significant
overcapacity of subsea construction vessels. Moreover, a
number of subsea construction vessels are coming off
contracts during the winter leading to increased
competition. From an earnings perspective 2020 will
most likely not be any better from 2019.
Boa Sub C is working on a 1-year term contract in West
Africa, keeping the vessel occupied until mid 2020, with
options for more work thereafter. The Boa Deep C is
currently enroute for a new short to medium term contract
in Asia, with firm commitment most likely into mid 1Q20.
The number of opportunities for new work in 2020-21 has
only improved marginally over the last 12-18 months.
Moreover, competition for these contracts is still relatively
tough and still quite few contracts are of longer term
duration.
STATEMENT FROM THE CEO
I hereby declare that to the best of my knowledge the
interim accounts for the third quarter of 2019 are
prepared in accordance with NGAAP – Interim financial
reporting, and that the information in the financial
statements portrays a true picture of the company’s
assets, liabilities, financial position and result as a whole,
as well as the more important risk and uncertainty factors
to which the company might be exposed in the next
financial period.
Trondheim, 29 November 2019
Helge Kvalvik
CEO
B O A O C V A N N U A L R E P O R T | 3
BOA OCV THIRD QUARTER REPORT | 6
3Q 2019 YTD 2019 3Q 2018 YTD 2018
(figures in NOK 1 000)
Operating income and operating expenses
Operating income 47 050 169 457 60 107 144 227
Operating income 47 050 169 457 60 107 144 227
Operating expenses vessels 22 018 83 830 23 819 68 789
Payroll expenses 15 294 46 447 17 246 48 522
Depreciation and write down 14 708 44 430 14 625 43 730
Other operating expenses 4 687 14 021 4 857 14 562
Total operating expenses 56 706 188 728 60 547 175 602
Operating result -9 656 -19 270 -440 -31 375
Financial income and expenses
Interest income from group companies 537 1 543 520 1 525
Other interest income 145 331 65 118
Other financial income 13 889 17 604 2 483 5 095
Other interest expenses 32 034 90 358 29 127 82 870
Other financial expenses 1 952 6 124 1 932 5 734
Financial result -19 415 -77 005 -27 991 -81 866
Result before tax -29 070 -96 275 -28 431 -113 241
Tax on ordinary result 256 256 0 0
Result after tax -29 326 -96 531 -28 431 -113 241
Income Statement
BOA OCV THIRD QUARTER REPORT | 7
30.09.2019 30.09.2018 31.12.2018
(figures in NOK 1 000)
Fixed assets
Tangible fixed assets
Vessels 624 195 626 276 613 248
Total tangible fixed assets 624 195 626 276 613 248
Financial fixed assets
Loans to group companies 139 076 141 173 139 738
Other receivables 1 992 1 097 1 318
Total financial fixed assets 141 067 142 271 141 056
Total fixed assets 765 262 768 547 754 303
Current assets
Inventories 3 914 0 2 576
Receivables
Trade receivables 47 046 51 379 38 942
Receivables from group companies 149 0 0
Other receivables 2 879 3 218 13 251
Total receivables 50 074 54 597 52 193
Cash and bank deposits 92 859 117 489 111 598
Total current assets 146 847 172 086 166 368
Total assets 912 109 940 632 920 671
Balance Sheet
BOA OCV THIRD QUARTER REPORT | 8
30.09.2019 30.09.2018 31.12.2018
(figures in NOK 1 000)
Equity and liabilities
Restricted equity
Share capital 100 100 100
Share premium 80 108 80 108 80 108
Other restricted equity 14 445 14 445 14 445
Total restricted equity 94 653 94 653 94 653
Retained earnings
Other equity -508 283 -373 402 -411 753
Total retained earnings -508 283 -373 402 -411 753
Total equity -413 631 -278 750 -317 100
Liabilities
Other long term liabilities
Bonds 1 276 098 1 159 225 1 187 481
Total long term liabilities 1 276 098 1 159 225 1 187 481
Short time liabilities
Trade creditors 12 930 25 387 18 316
Liabilities to group companies 186 460 263
Tax payable 0 -113 398
Other short term liabilities 36 524 34 424 31 313
Total short term liabilities 49 641 60 157 50 290
Total liabilities 1 325 739 1 219 382 1 237 771
Total liabilities and equity 912 109 940 632 920 671
Balance Sheet
BOA OCV THIRD QUARTER REPORT | 9
Figures in 1 000 NOK 3Q 2019 YTD 2019 3Q 2018 YTD 2018
Cash flow from operating activities
Profit before income taxes -29 070 -96 275 -28 431 -113 241
Payment in kind bonds (PIK-bonds) 30 583 88 617 27 584 80 798
Paid in tax -256 -734 0 -610
Depreciation/write-down 14 708 44 430 14 625 43 729
Write-down receivables from group entities 0 0 0 0
Changes in trade receivables and creditors -1 122 -13 490 3 517 -7 593
Changes in receivables from group entities 1 691 436 -422 8 871
Changes in other short-term receivables and liabilities -1 728 13 655 -1 610 6 830
Net cash flow from operating activities 14 806 36 638 15 263 18 784
Cash flow from investing activities
Purchase of fixed assets -9 -55 377 -1 312 -28 012
Net cash flow from investing activities -9 -55 377 -1 312 -28 012
Cash flow from financing activities
Repayment of long term liabilities 0 0 0 0
Net cash flow from financing activities 0 0 0 0
Net changes in cash and cash equivalents 14 797 -18 738 13 950 -9 228
Cash and cash equivalents start at period 78 063 111 598 103 539 126 718
Cash and cash equivalents end of period 92 859 92 859 117 489 117 489
Cash flow report
BOA OCV THIRD QUARTER REPORT | 10
Note 1 Accounting principles / general information
The quarterly report is unaudited and prepared in compliance with NGAAP using the same principles as the last financial year.
Miscellaneous
All figures in the notes are quoted in NOK 1 000.
Note 2 Fixed assets
Vessels
Periodic
maintenance Total
Acquisition cost 01.01.19 1 217 801 155 794 1 373 595
Additions 9 695 45 682 55 377
Disposals 0 0 0
Acquisition cost 30.09.19 1 227 496 201 476 1 428 972
Accumulated depr. and write-down 01.01.19 647 691 112 657 760 348
Depreciation this period 28 831 15 599 44 430
Write-down this period 0 0 0
Accum. depreciation 30.09.19 676 522 128 256 804 778
Book value 30.09.19 550 974 73 220 624 195
Economic life 27 2,5 - 10
Depreciation schedule Linear Linear
Note 3 Shareholder's equity
Share
capital Share premium
Other restricted
equity Other equity Total
Equity 01.01.19 100 80 108 14 445 -411 753 -317 101
Profit for the period 0 0 0 -96 531 -96 531
Equity 30.09.19 100 80 108 14 445 -508 284 -413 631
Notes
BOA OCV THIRD QUARTER REPORT | 11
Note 4 Income statement - summary
3Q 2019 YTD 2019 3Q 2018 YTD 2018
Operating income 47 050 169 457 60 107 144 227
Operating expences 41 998 144 298 45 922 131 872
EBITDA 5 054 25 160 14 185 12 355
EBITDA % 11 % 15 % 24 % 9 %
Depreciation and write-down 14 708 44 430 14 625 43 730
EBIT -9 654 -19 270 -440 -31 375
Net finance -19 415 -77 005 -27 991 -81 866
Pre tax profit -29 070 -96 275 -28 431 -113 241
Tax 256 256 0 0
Net profit -29 326 -96 531 -28 431 -113 241
Note 5 Utilization, income and expenses per vessel
3Q 2019 Boa Deep C Boa Sub C
Operating income 11 068 35 982
Operating expenses 19 626 22 273
EBITDA -8 558 13 709
Utilization 24 % 93 %
