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doc1p1i0
Sea1 Offshore Inc. Annual Report 2024
0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1
Sea1 Offshore Inc. Annual Report 2024
Highlights 2024
2
Key Figures
3
Board of Directors’ Report
5
The Company
5
Financial results, position and risks
5
Operations
7
Shareholders and corporate governance
8
Outlook
8
Sustainability Statement
11
Income Statements
83
Statements of Financial Position – Assets
84
Statements of Financial Position – Equity and Liabilities
85
Statements of Changes in Equity
86
Statements of Cash Flows
88
Notes to the Accounts
89
Corporate Governance
134
Auditor’s Report
138
Fleet overview
147
This is Sea1 Offshore
151
Responsibility Statement
153
Board of Directors
154
Financial Calendar
155
Alternative Performance Measurement
 
(APM) and other definitions
156
 
 
 
 
 
 
Highlights 2024
Sea1 Offshore Inc. Annual Report 2024
2
Revenue USD 1,000
 
340,825
EBITDA USD 1,000
 
165,680
Own workforce per 31.12.2024
1,385
Vessels in operation
 
per 31.12.2024
17
Highlights for the First Quarter
●
Signed agreements for the Well Intervention Vessels “Siem Helix 1”
and “Siem Helix 2”. The new contracts
 
commenced on 1 January
2025 and 1 January 2026 and replace the existing contracts. The
new contracts have a duration of 6 years for
 
each vessel, with
subsequent options of up to 5 years.
●
Entered into a one-year firm contract plus one year option for the
OSCV “Sea1 Spearfish” with PXGEO.
●
Awarded a contract extension for the PSVs
 
“Siem Giant” and “Siem
Atlas” with TotalEnergies
 
EP Brasil. The new duration for “Siem
Giant” is 3 years firm with options up to 4 more years and for
“Siem Atlas” the new duration is 9 months firm with options until
the end of Q2 2027.
Highlights for the Second Quarter
●
Signed a new contract for the Oil Spill Response Vessel “Siem
Marataizes” operating in Brazil with a duration of 4 years.
●
The Company agreed to sell 9 of its vessels (3 AHTS, 4 PSVs and 2
OSCVs) to the previous major shareholder Siem Sustainable Energy
S.a r.l and related
 
companies ("Siem") in exchange for 35.7% of the
Company's shares and USD 117.5 million debt assumption. Siem
resumed risk and reward of the vessels from 1 April 2024 and the
vessels were transferred on 5 July 2024.
 
●
The AGM was held on 7 May 2024. Following the AGM the
Directors of the Company were: Christen Sveaas, Celina Midelfart,
Fredrik Platou and Ørjan Svanevik.
 
●
Following the Annual General Meeting, the new Board convened
and elected Christen Sveaas as Chairman of the Board of Directors.
●
The Company changed its name from Siem Offshore Inc. to Sea1
Offshore Inc.
●
Recorded a net reversal of prior years’ impairment totaling to USD
159.1 million,
 
whereof net reversal related to vessels transferred
to Siem on 5 July 2024 amounts to USD 41.1 million.
Highlights for the Third Quarter
●
The Company completed a refinancing of certain parts of its debt.
Debt of USD 69 million maturing in 2024 related to seven Sea1
Offshore vessels was repaid. Existing loans with longer maturities
were repaid by USD 20 million and amended to remove
restrictions and undertakings imposed on the Company in the
2021 restructuring. Two new credit facilities with a total amount of
USD 150 million were entered into.
●
The contract with PXGeo for “Sea1 Dorado” was extended with
another 2 years and 4 months of firm period.
●
Signed management agreements for six AHTS vessels owned by
the Viking Supply Ships AB (publ.) group.
●
On the back of solid results, a strong balance sheet and outlook,
the Board on 20 August 2024 authorized a dividend payment of
NOK 5 per share, which was paid in September 2024.
●
Received a total payment of USD 25 million as settlement of the
seller’s credit and other receivables related to the sale of “Siem
Marlin” in 2019.
 
Highlights for the Fourth Quarter
●
Secured a multi-well project together with Viking Supply Ships for
3 AHTS’ in Australia, commencing in 1Q 2025. The duration of the
contract is minimum 16 wells firm. Total work
 
for Sea1 Offshores
own vessels is estimated to be between 570 to 1000 vessel days,
plus options. Exact number of days depends on the time spent on
each well.
●
Entered into shipbuilding contracts with Cosco Shipping (Qidong)
Offshore Co. Ltd. for two high-end Offshore Energy Support
Vessels with scheduled deliveries from first quarter 2027 to second
quarter 2027. The Company and Cosco Shipping are in discussion
around future potential for further new building vessels.
●
Purchased the shares in the subsidiary Sea1 AHTS Pool AS owned
by a minority shareholder, representing 22% of the shares in the
company. Following the transaction, Sea1 Offshore
 
Inc. owns 100%
of the shares in Sea1 AHTS Pool AS, which owns five AHTS vessels.
●
A long-term incentive plan (“LTIP”) established for the
management team of the Company.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Key figures
3
Sea1 Offshore Inc. Annual Report 2024
(Amounts in USD 1,000)
CONSOLIDATED
INCOME STATEMENT
Ref
2024
2023
Operating revenue
340,825
336,026
Operating expenses
-175,144
-171,540
EBITDA
(1)
165,680
164,486
EBITDA, %
(2)
49%
49%
Depreciation and amortization
-57,780
-68,023
Reversal of impairment of vessels
159,116
66,966
Other Gain/(loss)
-25,587
-178
Operating profit
(3)
241,430
163,251
Net financial items
-37,041
-9,695
Result from associated companies
-52
550
Profit /(loss) before taxes
204,337
154,106
Tax benefit/(expense)
-1,388
19,027
Net profit/(loss)
202,948
173,133
Attributable to non-controlling interest
30,191
-1,381
Net profit/(loss) attributable to shareholders
172,758
174,515
STATEMENT
 
OF FINANCIAL POSITION
31 Dec 2024
31 Dec 2023
Non-current assets
680,270
919,814
Current assets
138,208
167,155
Total assets
818,478
1,086,969
Total equity
405,992
529,176
Non-current liabilities
312,046
301,405
Current liabilities
100,440
256,388
Total equity and liabilities
818,478
1,086,969
Definitions
(1) EBITDA is the net of Operating revenue and operating expenses. For 2024 operating revenues
 
USD 340,825 less operating expenses at USD
175,144 equals EBITDA at USD 165,680. The Company considers EBITDA to be a key number when analyzing the fleets operating performance
and the EBITDA that can be allocated to the finance of capital expenditures, debt-service and other cash disbursements.
 
(2) EBITDA,
 
%. The relative operating margin is calculated to be the percentage of EBITDA to operating revenue.
 
For 2024 EBITDA at USD
165,680 equals 49% of the operating revenue at USD 340,825. The Company considers the EBITDA, % to be important when analyzing the
vessels' relative performance.
(3) The Operating Profit is the profit before financial items and tax. The operating profit for
 
2024 is calculated by adding operating revenues at
USD 340,825, less operating expenses at USD 175,144, less depreciation and amortization at USD 57,780,
 
plus reversal of impairments at USD
159,116 less other gain/loss at USD 25,587 which equal operating profit at USD 241,430.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
doc1p5i0
 
 
 
 
Sea1 Offshore Inc. Annual Report 2024
4
STATEMENT
 
OF CASH FLOWS
2024
2023
Net cash flow from operations
131,070
137,624
Net change in cash
-28,832
1,804
KEY FIGURES
2024
2023
Weighted average no. of outstanding shares (1,000)
196,897
238,852
Weighted average no. of diluted outstanding shares
 
(1,000)
196,897
238,852
Earnings per share (USD)
0.88
0.73
Diluted earnings per share (USD)
0.88
0.73
Share price per year end (USD)
2.15
2.71
Share price per year end (NOK)
24.45
27.60
31/12/2024
31/12/2023
I I
 
I
 
I
 
I I
 
I
 
I
 
I I
 
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I I
 
I I
 
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17 TOTAL
I I
 
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I I
 
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I
 
I I
 
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I I
 
I I
 
I I
 
I I
 
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I I
 
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26 TOTAL
31/12/2022
I I
 
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I I
 
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I I
 
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I
 
I I
 
I I
 
I I
 
I I
 
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I I
 
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I I
 
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28 TOTAL
31/12/2021
I I
 
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I I
 
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I I
 
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I I
 
I I
 
I I
 
I I
 
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I I
 
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I I
 
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28 TOTAL
 
31/12/2020
I I
 
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I I
 
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I I
 
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I I
 
I I
 
I I
 
I I
 
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I I
 
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I I
 
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I
 
31 TOTAL
31/12/2024
I I
 
I
 
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I I
 
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I
 
I I
 
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I
 
I I
 
I I
 
I
 
17 TOTAL
31/12/2023
I I
 
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I I
 
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I I
 
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I I
 
I I
 
I I
 
I I
 
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I I
 
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26 TOTAL
31/12/2022
I I
 
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I I
 
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I I
 
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I I
 
I I
 
I I
 
I I
 
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I I
 
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I I
 
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28 TOTAL
31/12/2021
I I
 
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I I
 
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I I
 
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I I
 
I I
 
I I
 
I I
 
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I I
 
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I I
 
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28 TOTAL
31/12/2020
I I
 
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I I
 
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I I
 
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I I
 
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I I
 
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I I
 
31 TOTAL
 
Owned
vessels
 
Vessels in operation
Ownership
 
0-79%
 
100%
 
 
 
 
5
Sea1 Offshore Inc. Annual Report 2024
Board of Directors' Report
The Board of Directors of Sea1 Offshore Inc. (the “Board”) presents its report for
 
the
fiscal year ended 31 December 2024, together with the audited consolidated financial
statements for the Company and the Parent
 
Company.
 
The financial statements and
related notes were authorized for
 
issue by the Board on 4 April 2025 and will be
presented to the shareholders for approval
 
at the Annual General Meeting to be held
on Friday 25 April 2025.
THE COMPANY
All references to “Sea1 Offshore” and the “Company” shall mean Sea1 Offshore Inc. and its subsidiaries and associates unless the context
indicates otherwise. All references to “Parent” shall mean Sea1 Offshore Inc. as the Parent Company
 
only.
Sea1 Offshore is registered in the Cayman Islands and is listed on the Oslo Stock Exchange (OSE Symbol: SEA1). The Company’s
headquarter is located in Kristiansand, Norway and subsidiary offices are located in Brazil, Australia, Canada, Cayman
 
Islands and United
States. The Company is tax domiciled in Norway.
The Company’s primary activity is the ownership and operation of offshore support vessels (“OSVs”)
 
for the offshore energy service
industry (oil & gas and offshore wind).
 
The Company operated a fleet of 17 owned vessels at year-end, including 1 vessel in lay-up. During 2024, the total fleet of OSVs
 
conducted
operations in the North Sea, Brazil, Australia, Canada, Southeast Asia, South America and West Africa.
The Company sold 9 of its vessels to previous major shareholder Siem Sustainable Energy S.a r.l and related companies (“Siem”) in
exchange for 35.7% of the Company’s shares on 5 July 2024. Siem also assumed USD 117.5 million of existing vessel debt as part of the
transaction. Siem thereafter ceased to be a shareholder in the Company and Kristian Siem discontinued as Chairman of the Board following
the annual general meeting 7 May 2024. The repurchased shares were cancelled with immediate effect following the transaction. The
Company also changed its name from Siem Offshore Inc. to Sea1 Offshore Inc.
FINANCIAL RESULTS,
 
POSITION AND RISKS
IFRS
 
The financial statements for the Company and the Parent are prepared
 
in accordance with IFRS Accounting Standards as adopted by the EU.
Going-Concern
 
The financial statements have been prepared under the assumption that the Company and the Parent are going concerns. The Company’s
financial position, financing arrangements and forecasted cashflows are supporting a going concern status.
 
The Market
The OSV market showed further improvements through 2024 for all segments compared to the previous year.
 
The Offshore Construction and
Subsea segments were tight throughout the year.
 
With increased activity within Oil and Gas in combination with Offshore wind there was high
contract coverage for the tier 1 subsea fleet in 2024.
 
Sea1 Offshore Inc. Annual Report 2024
6
In the North Sea, the spot market was volatile through the year.
 
Overall, the AHTS segment saw average rates increase
 
about 12% over
the previous year, although with high volatility as before.
 
February, March, June and July were by far the most
 
active months. Like previous
years the market slowed down significantly in the last quarter.
 
Globally, the large AHTS segment continued the positive development with
increasing rate levels for term work in several regions.
 
The global PSV market experienced increase in day rates in almost all regions, especially for the largest
 
vessels. Towards
 
the end of the
year the term rates softened somewhat due to a slight reduction in rig activity.
Through the year around 70 OSVs were reactivated
 
from layup world-wide, around 50 of these in the smaller AHTS segments. The
remaining cold stacked fleet is old and has been stacked several years.
 
Therefore, these units are unlikely to be reactivated in any
 
significant
number.
Income Statement
In 2024, the Company recorded operating revenue of USD 340.8 million and a net profit attributable to shareholders of USD 172.8 million, or
USD 0.88 per share, compared to operating revenue of USD 336.0 million and a net profit attributable to shareholders of USD 174.5 million, or
USD 0.73 per share, in 2023. The revenues have increased despite a reduced number of vessels in the second half of 2024, following the sale
of the 9 vessels. The increase in revenues was primarily due increased activity and revenues for the Subsea and AHTS fleet.
 
The increased net
profit was mainly due to improved demand and thereby higher rates for vessels and also reversal of impairments
 
related to vessels.
 
The Company’s EBITDA for 2024 was USD 165.7 million compared to USD 164.5 million in 2023. EBITDA as a percentage of operating
revenue was 49% in 2024 compared to 49% in 2023.
 
The Company’s operating profit for 2024 was USD
 
241.4 million compared to USD
 
163.3 million in 2023 and includes depreciation and
amortization of USD
 
57.8 million (2023: USD
 
68.0 million). During 2024,
 
the Company conducted periodic reviews of vessel valuations, and
recognized
 
reversal of vessel impairments of USD
 
159.1 million (2023: USD 67.0 million).
 
The Company’s net financial items were USD
 
-37.0 million (2023: USD -9.7 million)
 
and included financial expenses of USD
 
-28.1 million
(2023: USD -29.7 million) and a revaluation gain/(loss) of non-USD currency items of USD -17.7 million (2023: USD
 
9.0 million) mainly due to
variances in NOK and BRL compared to USD during the period. Non-USD currency items are held to match short- and long-term liabilities,
including off-balance sheet liabilities, in a similar currency.
The Parent Company is primarily a holding company owning shares in subsidiaries.
 
The Board proposes that the Parent’s net profit of USD 297.6 million for 2024 be allocated to retained
 
earnings. A dividend of USD 72.8
was paid in 2024.
 
Financial Position and Cash Flows
Total equity was USD 406 million at year-end
 
2024 (2023: USD 529 million), and the book equity ratio was 50% (2023: 49%). Shareholders’
equity was USD 406 million (2023: USD 534 million), equivalent to USD 2.64 per share (2023:
 
USD 2.24 per share).
 
The net interest-bearing debt at year-end was USD 270 million (2023: USD 365 million). As part of the vessel sale, Siem assumed USD
117.5 million of existing vessel. On 5 July 2024, simultaneously with the closing of the vessel sale the Company completed the refinancing of
certain parts of its debt, including the facilities maturing in 2024. Two new credit facilities are in place, in addition to existing facilities with
longer maturities. Following the refinancing, which also removed restrictions imposed on the Company in the 2021 restructuring, the
Company is again in position to optimize the capital structure further,
 
make investments and make distributions to shareholders.
In December 2024 the Company purchased the shares in the subsidiary Sea1 AHTS Pool AS owned by a minority shareholder, representing
22% of the shares in the company. Following the transaction, Sea1 Offshore
 
Inc. owns 100% of the shares in Sea1 AHTS Pool AS. The weighted
average cost of debt for the Company was approximately
 
7.0% p.a. at year-end (2023: 6.7% p.a.).
 
Cash flows
The cash position at year-end was USD
 
68.3 million (2023: USD
 
97.3 million).
 
The Company paid debt instalments of USD 266 million, including the debt assumption related to the sale of vessels in 2024 (2023: USD
112 million).
 
New loans amounting to USD 150 million have been obtained.
The Company’s cash-flows are primarily denominated in USD, NOK, EUR, BRL, GBP,
 
CAD and AUD. From 31 December 2023 to 31
December 2024, the USD strengthened by 10.4% to the NOK, 21.8% to the BRL, 6.0% to the EUR, 1.5% to the GBP,
 
7.9%
 
to the CAD and 8.8%
to AUD.
 
 
 
Board of Directors’ Report
7
Sea1 Offshore Inc. Annual Report 2024
Financial Risks
Interest risk
The Company is exposed to changes in interest rates, as approximately
 
71% of the interest-bearing debt is based on floating interest rates and
denominated in USD with SOFR as reference rate. The Company is exposed to the risk that significant increases in interest
 
rates could have a
negative impact on the Group’s financial results and condition. The Company holds a low delta USD 150 million interest
 
rate option / cap with
maturity in 4 years as additional security against unfavorable increase in SOFR.
Currency risk
The Company is exposed to currency risk as revenue and costs are denominated in various currencies. Some assets are denominated in local
non-USD currencies and therefore their book value when converted to USD is exposed to foreign
 
exchange fluctuations. However,
 
in real
terms USD-valuation for mobile vessels operating globally are most likely not affected
 
by fluctuation in local currencies. The Company held no
foreign exchange derivatives at year end.
Inflation Risk
The Company is exposed to inflation risk. The revenues may not be inflated at levels that could compensate
 
for inflated operating cost. In
addition to general inflation-rates, the operating expenses related to
 
spare parts, service-personnel and logistics within the shipping industry
are further exposed to shortage and long lead time.
Liquidity risk
The Company is financed by a combination of debt and equity. If the Company fails to repay or refinance its
 
credit facilities, additional equity
financing may be required.
 
Climate risk
A Climate Risk Scenario analysis has been performed for two scenarios, one 1.5degree scenario in line with Paris agreement implying large
degree of conversion of the vessel fleet, and one as-is scenario with 3-4degrees temperature increase and large chronic climate
 
changes. The
Resilience analysis done shows that the Company is very agile and resilient to any foreseen climate changes.
 
War risk
The war in Ukraine could impact the market balance of offshore support vessels in the Company’s key
 
areas of operation. There is associated
risk of price escalations to vessel spare parts, logistics and other services. The Company observes indications of shortages of experienced crew
and escalation of crew costs. Sanctions that have been imposed on nations and organizations could affect
 
the Company’s competition directly
and indirectly, and its ability to receive and send payments for
 
its services.
 
OPERATIONS
Fleet, Performance and Employment
The owned fleet in operation at the end of 2024 totaled 17 vessels plus 2 vessels under construction (2023: 26 vessels including partly owned
vessels) including 1 vessel in lay-up (2023: 2 vessels). In addition to the owned fleet, per 31 December 2024, the Company performed ship
management services for 16 vessels, following the sale of 9 vessels. Management for 11 of these vessels will be transferred to a new manager
during the period from January-April 2025. During 2024, the Company has taken over management for 5 vessels owned by Viking Supply Ships.
Note that the operating revenue and operating cost for the 9 vessels sold has been moved from its
 
original segment and is now presented
under the “Other” segment also for the comparable figures for 2023.
The Company’s Subsea segment had 2 OSCVs, 2 WIVs
 
and 1 Scientific Core Drilling Vessel in operation at end of the year (2023:
 
5 in total,
excluding the 2 OSCV’s vessels sold). The Subsea fleet earned operating revenues of USD 139.1 million and had 96% utilization (2023: USD
137.5 million and 99%). The operating margin before administrative expenses was USD 95.1 million (2023: USD 91.6 million) and the operating
margin as a percentage of revenue was 68% (2023: 67%).
 
 
 
Sea1 Offshore Inc. Annual Report 2024
8
The Company had 6 AHTS vessels in operation at end of the year (2023: 6, excluding the 3 AHTS vessels sold). The AHTS fleet earned
operating revenues of USD 97.2 million and had 84% utilization (2023: USD 57.1 million and 78% utilization). The operating margin before
administrative expenses was USD 50.5 million (2023: USD 22.6 million) and the operating margin as a percentage of revenue was 52% (2023:
40%).
 
The Company had 2 PSVs in operation at end of the year (2023: 2, excluding the 4 PSV vessels sold). The PSV fleet earned operating
revenues of USD 19.1 million and had 96% utilization (2023: USD 14.0 million and 95%). The operating margin before administrative expenses
was USD 9.6 million (2023: USD 4.5 million) and the operating margin as a percentage of revenue was 50% (2023: 32%).
 
Sea1 Offshore do Brasil S.A. is the Company’s wholly owned Brazilian subsidiary that owns and operates a fleet of 4 Fast
 
Crew and Oil Spil
Recovery vessels in Brazil (2023: 4). This fleet earned operating revenues of USD 12.2 million and had 91% utilization (2023: USD 14.3 million
and 98%). The operating margin before administrative expenses was
 
USD 2.4 million (2023: USD 4.3 million) and the operating margin as a
percentage of revenue was 20% (2023:
 
30%).
 
The total firm contract backlog for all OSV vessels on 31 December 2024 was USD 840 million (2023: USD 320 million of which USD 235
million for the vessels today owned by the Company). The total vessel contract backlog is allocated with USD 229 million in 2025, USD 154
million in 2026 and USD 457 million in 2027 and onwards. In addition, the options backlog for all OSV vessels on 31 December 2024 was USD
626 million The contract backlog including options, as a percentage of the annual fleet capacity, is estimated to be 79% for
 
2025, 63% for 2026
and 51% for 2026 (2023 excluding vessels sold: 56% for 2024, 20% for 2025 and 9% for 2026), also see Note 18.
SHAREHOLDERS AND CORPORATE
 
GOVERNANCE
Shareholder Information
The Company’s authorized share capital is USD 300,000,000 divided into 300,000,000 ordinary shares of a nominal value of USD 1.00 each.
Following the vessel sale transaction in July 2024, the 85,307,737 repurchased shares were cancelled with immediate effect. Following the
cancellation of another 581 single shares without ownership, the Company had an issued and outstanding share capital of USD 153,543,734
divided into 153,543,734 shares, each with a par value of USD 1 on 31 December 2024. The Company’s shares are listed on the Oslo Stock
Exchange with the ticker symbol SEA1.
 
The Company’s largest shareholder and ultimate owner is Kistefos AS,
 
with a 51.8% interest on 31
December 2024. During 2024, the closing share price reached a high of NOK 37.8, a low of NOK 23.25 and closed at NOK 24.45 at year-end.
The share prices are not adjusted for the extraordinary dividend in January 2025.
 
Corporate Governance
The Company has implemented guidelines for good corporate governance based on the recommendations and guidelines given by the Oslo
Stock Exchange. The purpose of these guidelines is to clarify roles of the Shareholders, the General Meeting, the Board of Directors and the
day-to-day Management beyond what follows from the legislation. A detailed summary of our corporate
 
governance principles is included in a
separate section of the Annual Report.
OUTLOOK
Global activity is expected to increase significantly, with nearly all regions anticipating further growth the coming years.
 
Brazil and West Africa
are likely to be the main drivers of this surge. In the North Sea, the UK sector has seen a decrease in planned activities, while the Norwegian
sector is projected to see growth in the coming years. Canada and Australia also have strong long-term
 
forecasts, though 2025 is expected to
be a slower year in these regions before activity picks up again. Despite these fluctuations, we remain optimistic about all segments in the
coming years.
The PSV segment is expected to see higher utilization due to the global rise in drilling activity, with a growing demand for large,
sophisticated vessels, particularly in regions lacking infrastructure.
 
The AHTS market will continue to be volatile, but we anticipate more prolonged peaks as more projects
 
enter the market, which will also
impact long-term contract levels. The significant number of FPSO installations will contribute positively to this segment, as these projects
 
 
Board of Directors’ Report
9
Sea1 Offshore Inc. Annual Report 2024
require multiple vessels and early commitments, creating market constraints. Floating wind projects may
 
also provide a boost to the segment,
although we anticipate delays as there are still several challenges to overcome
 
before these projects can be commercialized. Although the
current fundamental market drivers remain positive, there is an increasing uncertainty with regards
 
to how tariffs and the geopolitical
situation will impact the global offshore market.
INTRODUCTION TO SUSTAINABILITY
 
STATEMENT
General notes
 
This Sustainability Statement for 2024 is the fifth sustainability report in Sea1 Offshore to document our focus on Environmental,
 
Social and
Governance (ESG), and to display our development and performance within sustainable vessel operations.
In accordance with EU Corporate Sustainability Reporting Directive (CSRD), the Sustainability Statement
 
for 2024 is integrated in the
Annual Report and divided into chapters in line with material topics in the European Sustainability Reporting Standard (ESRS)
 
as found in our
revised Double Materiality Analysis. The results from the EU Taxonomy
 
analysis are also presented in this report.
A major event during the year was the sale of the 9 vessels to Siem. As a result, the Sea1 worldwide fleet consist of 17 owned vessels plus
17 vessels on ship management. Excluding two vessels on bareboat contracts in Brazil considered not to be material, this report and the
climate reporting for 2024 cover 32 vessels.
 
Note on the environmental reporting (ESRS E1 and E2) for Scope 1 and 2, the climate and emissions data will be split between the owned
vessels and the external vessels on management. For Scope 3 only data for the Sea1 owned vessels will be presented.
For social data (S1), the vessel crew will be split into Own Employees (permanent crew with direct contracts) and Non-Employees (the
short-term hired crew from external manning agencies).
Our Vision
 
Sea1 Offshore’s vision is to be a leading vessel provider and the most attractive
 
employer, delivering first class services worldwide. To
 
support
this vision, we have designed and operate an integrated health, safety,
 
environment and quality management system.
 
The company’s strategy is to grow within the offshore
 
support vessel market and provide cost efficient solutions in close cooperation with
customers and by applying state of the art technology and firsthand experience.
To achieve these goals, we involve
 
our employees in the development of a company culture that expresses the kind of behavior and
conduct required to achieve the vision of the company and the goals for the individuals.
 
Health, Safety, Environment & Quality
 
The Company has a continuous focus on safe operations, cooperation with stakeholders
 
and environmental initiatives. Close cooperation with
major clients on a global basis is of great importance and promoting the collective team- and safety culture throughout the Company together
with our partners. The global footprint with long-term contracts in all hemispheres has been of the utmost importance for the safe-
 
and
quality track record of our operations.
Ethics, Compliance, and Integrity
Sea1 Offshore is committed to carrying out its business in an ethical manner and in strict compliance with applicable laws wherever it
operates, latest example being the Transparency
 
Act that ensures focus on human rights in the supply chain. The compliance and governance
work continued to be a focus area in 2024, where we have earned trust of our clients, business partners, suppliers, and other stakeholders
 
by
acting consistently and reliably in accordance with these principles.
Our Sustainability Goals
Sea1 Offshore’s sustainability goals align with the targets set by the Norwegian Shipowners Association (NSA)
 
which comply with the overall
sustainability goals set by the United Nations (UN) and the European Union (EU). The primary objective is to be climate neutral by 2050.
 
To achieve the target for
 
2050 Sea1 Offshore will cut its greenhouse gas emissions (GHG) intensity by 50 percent per unit by 2030
compared to 2008. By 2030 and onwards we will only order newbuilds with zero emissions technology to achieve a climate neutral fleet from
2050 and beyond.
Sea1 Offshore Inc. Annual Report 2024
10
The Company also has long-term goals of remaining a safe workplace for its workers
 
both onshore and offshore, as well as promoting
gender diversity and equality, good working conditions, focusing on anti-corruption and anti-slavery measures.
Executive Summary
A Double Materiality Analysis has been performed giving 24 material Impact, Risk and Opportunities (IRO) for the Company.
 
A Climate Risk Scenario analysis has been performed for two scenarios, one 1.5-degree scenario in line with Paris agreement implying large
degree of conversion of the vessel fleet, and one as-is scenario with 3-4degrees temperature increase and large chronic climate
 
changes. The
Resilience analysis done shows that Sea1 Offshore is very agile and resilient to any foreseen climate changes.
The EU Taxonomy
 
analysis as per Regulation 2020/852 give 99% of the Company’s net revenue of USD 341
 
million to be taxonomy eligible, but
none of this is taxonomy aligned.
Phase-in provisions as allowed by the regulation have been applied, implying that a Capex Transition Plan and quantification of financial
effects on sustainability matters will not be presented in this report.
The GHG climate account gives following emission data for 2024:
-
Total direct CO2_eq emissions are 284 501Te
 
(Scope 1)
-
Total indirect CO2_eq emissions from purchased electricity are 1 124 Te
 
(Scope 2), using market-based approach
-
Total other indirect CO2_eq emissions are 19 549Te
 
(significant categories of Scope 3)
Hence, total reported CO2 equivalent emissions for 2024 are 305 174Te.
 
As 2024 is the new baseline year, no comparable historic data
 
is presented.
As per 31.12.2024 there were 1259 employees offshore (7% females)
 
and 126 employees onshore (40% females).
 
There were no reported whistleblower cases in 2024.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Board of Directors’ Report
11
Sea1 Offshore Inc. Annual Report 2024
SUSTAINABILITY
 
STATEMENT
ESRS 2 - General Disclosures
ESRS Index
Chapter & sub-chapter
Page
ESRS 2 - General Disclosures
11
BP-1 General basis for preparation of
 
the sustainability statement
12
BP-2 Disclosures in relation to specific circumstances
13
GOV-1 The role of the administrative, supervisory and management bodies
15
GOV-2 Sustainability matters addressed by the undertaking’s
 
administrative, management and
supervisory bodies
16
GOV-3 Integration of sustainability-related performance
 
in incentive schemes
17
GOV-4 Statement on sustainability due diligence
17
GOV-5 Risk management and internal controls over sustainability
 
reporting
17
SBM-1 Strategy, business model and value chain
18
SBM-2 Interests and views of stakeholders
20
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and
business model
21
IRO-1 Process to identify and assess material impacts, risks and opportunities
25
IRO-2 Disclosure requirements in ESRS covered by the sustainability
 
statement
32
Metrics and Targets in relation
 
to material sustainability matters
37
Environment (E)
38
EU Taxonomy
38
Assessment of Alignment
38
Minimum Safeguards
38
Taxonomy
 
- KPI Templates for
 
Revenue, CAPEX and OPEX
39
ESRS E1: Climate Change
42
E1-1 Transition plan for climate change
 
mitigation
42
ESRS 2 SBM-3
42
E1-2 Policies related to climate change mitigation and adaptation
44
E1-3 Actions and resources in relation to climate change policies
45
E1-4 Targets related
 
to climate change mitigation and adaptation
46
E1-5 Energy consumption and mix
47
E1-6 Gross Scopes 1, 2, 3 and Total
 
GHG emissions
48
ESRS E2: Pollution
52
From ESRS 2 General Disclosures – IRO Management
53
E2-1 Policies related to pollution
53
E2-2 Actions and resources related to pollution
54
E2-3 Targets related
 
to pollution
55
E2-4 Pollution of air,
 
water and soil
56
Social (S)
58
ESRS S1: Own Workforce
58
S1-1 Policies related to own workforce
60
S1-2 Processes for engaging with own workforce and workers’
 
representatives
63
S1-3 Processes to remediate negative impacts and channels to raise
 
concerns
64
S1-4 Taking action and managing impacts on own workforce,
 
and the effectiveness of those
actions
66
S1-5 Targets related
 
to managing material negative impacts, advancing positive impacts
69
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sea1 Offshore Inc. Annual Report 2024
12
S1-6 Characteristics of the undertaking’s employees
71
S1-8 Collective bargaining coverage and social dialogue
71
S1-9 Diversity metrics
72
S1-10 Adequate wages
72
S1-11 Social protection
72
S1-17 Incidents, complaints and severe human rights impacts
75
Governance (G)
76
G1-1 Business conduct policies and corporate culture
77
G1-2 Management of relationships with suppliers
79
G1-3 Prevention and detection of corruption and bribery
79
G1-4 Incidents of corruption or bribery
81
Targets and Actions in relation
 
to G1 Business Conduct
81
BP-1 General basis for preparation
 
of the sustainability statement
ESRS 2.3 – 2.4 General basis
This 2024 annual Sustainability Statement by Sea1 Offshore Inc. adheres to the Corporate Sustainability Reporting Directive (CSRD),
 
which also
includes the European Sustainability Reporting Standards (ESRS).
ESRS 2.5 – Information for disclosure
The sustainability statement is made on consolidated basis considering all regions and all subsidiaries, and the scope of consolidation is the
same as for the Sea1 Offshore Inc. financial statement FY 2024.
The sustainability statement covers only relevant
 
parts of the upstream value chain, such as material categories of Scope 3 emissions (ref.
Sea1 Offshore Value Chain flowchart), and from our own operations. Downstream will only be partly covered
 
(see sub-chapter Non-material
topics and standards for FY 2024).
 
The sustainability statement covers relevant
 
part of the upstream value chain. The significant upstream Scope 3 categories found are:
●
1. Purchased goods and services
●
4. Upstream transportation and distribution
 
●
5. Waste generated in operations
●
6. Business travel
Note for Scope 3, Category 3 Fuel Consumption and Energy-related Activities, all fuel consumption for owned vessels when onhire and offhire
are now reported under Scope 1. Hence, this category is set to 0 for FY24.
The remaining non-significant categories under Scope 3 are described and listed under E1-6.
Reference is also made to ESRS 2 SBM-3 for information on the Double Materiality Assessment
 
and the SEA1 Value Chain flowchart.
No information is omitted with regards to intellectual property or other sensitive information.
After the exit on the 5th of July 2024 by Siem Sustainable Energy S.a.r.l. (“Siem”) and 9 vessels, the SEA1 fleet consist at
 
end of 2024 of 17
owned vessels plus 17 vessels on ship management (9 vessels for Siem, 2 vessels for SOSI, 1 vessel for MPL (up to 12th of September 2024)
and 5 AHTS for Viking Supply Ships (VSS), see also dates below). Subtracting the two vessels on bareboat contracts in Brazil, this report and the
climate reporting for 2024 cover 32 vessels.
Note on environmental reporting (ESRS E1) for Scope 1 and 2, GHG emissions data will be presented both combined and separate
 
for the 15
owned vessels (which excludes the 2 in Brazil) and the 17 external vessels on management. With regards to pollution data (ESRS
 
E2) for Scope
1 and 2, data will be split between the 15 owned vessels and the 17 external vessels on management. For Scope 3 only data for the SEA1
vessels will be presented.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Board of Directors’ Report
13
Sea1 Offshore Inc. Annual Report 2024
For social data under ESRS S1 the vessel crew will be split into Own Employees and Non-Employees, where the Own Employees being the long-
term crew with direct contracts with Sea1 Offshore affiliated companies, and the Non-Employees includes the short-term
 
or hired crew as
provided by external manning agencies, giving a sum of Own Workforce. It shall regardless be noted that SEA1
 
has the overall responsibility for
all crew onboard our vessels via the Maritime Labour Convention (MLC).
Following dates in 2024 applies for the ship management of the externally owned vessels:
Vessel name
Owner
SEA1 Management Period
Siem Marlin
MPL
01.01.-12.09.
Siem Day
SOSI
All 2024
Siem Challenger
SOSI
All 2024
Siem Opal
Siem
05.07. – 31.12.
Siem Pearl
Siem
05.07. – 31.12.
Siem Topaz
Siem
05.07. – 31.12.
Siem Pride
Siem
05.07. – 31.12.
Siem Symphony
Siem
05.07. – 31.12.
Siem Thiima
Siem
05.07. – 31.12.
Siem Pilot
Siem
05.07. – 31.12.
Siem Barracuda
Siem
05.07. – 31.12.
Siem Stingray
Siem
05.07. – 31.12.
Brage Viking
VSS
20.04. – 31.12.
Loke Viking
VSS
09.10. – 31.12.
Odin Viking
VSS
17.10. – 31.12.
Njord Viking
VSS
24.10. – 31.12.
Magne Viking
VSS
25.10. – 31.12.
BP-2 Disclosures in relation to specific circumstances
ESRS 2.10 – Value chain estimation and reporting standards
The upstream value chain data contain indirect data sources and estimates,
 
such as for Scope 3 Category 1 Purchased goods and services, and
for Scope 3 Category 5 Waste generated
 
in operations.
A spend-based model for Scope 3 Purchased goods and services have been applied based on Purchase Order-values exported from the supply
chain system, and estimated CO2-emission factor per USD are added based on country of origin and type of product. Overall average
 
CO2-
factor for 2024 is 318gram/USD spent.
For Scope 3 Category 5 Waste generated
 
in operations, estimates on emission factor have been applied with typical 1.75kg CO2 per kg waste
delivered to reception facilities and 2.3kg CO2 per kg waste incinerated. Waste
 
discharged to sea has zero CO2 emissions.
For changes in the preparation and presentation of sustainability information compared to
 
previous reporting period(s), please note 2024 is
first year of sustainability reporting based on ESRS.
ESRS 2.11 – 2.12 – Sources of estimation and outcome uncertainty
For Scope 1 and emissions on vessels the level of accuracy is deemed very high, using high resolution sensor data and daily adjustment by
vessel crew for official reporting purposes. The GHG emission factors based on fuel consumption are taken from
 
‘Statistisk Sentralbyrå’ (SSB),
2020.
For Scope 3, Category 1, the spend-based model with output from the supply chain database is estimated to have +/-20% inaccuracy.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sea1 Offshore Inc. Annual Report 2024
14
For Scope 3, Category 5, the applied emission factors on different waste
 
categories are estimated to have +/-40% inaccuracy.
ESRS 2.17 - Use of phase-in provisions in accordance with Appendix C of ESRS 1
Phase-in provisions have been applied for certain metrics in topics E1, E2, S1 and S2.
 
These topics are material to the Company, however
 
for the 2024 reporting period the following sub-topics as listed in the table below will be
provisioned as phase-ins and thus omitted in this report.
 
For the 2024 reporting period SEA1 has a workforce consisting of 677 own employees. Hence, S1 will be phased in in its entirety. However,
chapters S1-1 to S1-6, including S1-9, S1-10, S1-11 and S1-17 are presented in the report with limitations as described.
For same reason S2 will be phased in in its entirety, however,
 
a summary of risks and mitigating actions is described below.
Phase-in chapter
Name of chapter
Reason for applying phase-ins
E1-9
Financial Effects
<750 own employees
E2-6
Financial Effects
<750 own employees
S1-7
Characteristics of non-employees in the undertaking’s
own workforce
<750 own employees
S1-8
Collective bargaining coverage and social dialogue
<750 own employees
S1-12
Persons with disabilities
<750 own employees
S1-13
Training and Skills development metrics
<750 own employees
S1-14
Health and Safety metrics
<750 own employees
S1-15
Work-life Balance metrics
<750 own employees
S1-16
Remuneration metrics
<750 own employees
S2
Workers in Value Chain
<750 own employees
As per CSRD/ESRS requirements these chapters will be implemented in the report for FY2025.
S2 Workers in the Value Chain:
ESRS S2 is intended to integrate the consideration of impacts on workers
 
in our value chain. In accordance with the Norwegian Transparency
Act, a risk analysis of workers in the value chain was conducted in 2024 and published on Sea1 Offshore’s
 
web page as Sea1 Offshore Account
of Transparency Act Due Diligence.
 
From the due diligence process we have identified that use of shipyards in remote areas need special attention due to
 
high risk for adverse
impact on human and labor rights. To address potential negative impacts,
 
we have generated human right self-assessment checklists for
shipyards and an audit plan for auditing of the most relevant shipyards.
 
Sea1 Offshore has in line with the intention of the Transparency Act partnered
 
up with another major offshore vessel owner in Norway where
we collaborate on the due diligence process and auditing of shipyards.
In 2024 three shipyards in Singapore have been audited by Sea1 Offshore on human rights with basis in UN Guiding Principles and
International Labor Organization (ILO) standards. Common adverse
 
impacts were found to be excessive overtime, lack of weekly rest and
missing policies on human right. All findings and observations have been addressed with the specific shipyards and given 3 months to rectify.
 
Sea1 Offshore uses external crewing agencies which via the due diligence process has been identified as a potential risk area. Since the
previous due diligence accounts, three crewing agencies have been audited on a general basis. No adverse impacts towards
 
human rights
were identified.
 
 
Board of Directors’ Report
15
Sea1 Offshore Inc. Annual Report 2024
There are no time-bound targets set for workers
 
in the value chain. A number of policies as part of the Business Code of Conduct, however,
are relevant for workers
 
in the value chain, including:
 
●
The Business Partners Policy
●
Anti-Slavery policy
●
Human Rights Policy
●
Supply chain Purchasing procedures
●
Audit procedure
●
Pre-qualifications of suppliers
GOV-1 The role of the administrative, supervisory and management bodies
ESRS 2.19 - 21 The composition and diversity of the bodies
Sea1 Offshore’s Board of Directors consists
 
of four Directors. Members of the Board are Chairman Christen Sveaas, Celina Midelfart, Fredrik
Platou and Ørjan Svanevik. There are no non-executive members in the Board of Directors.
The Management team consists of five executive members with long-standing experience and knowledge within their fields, including
business compliance and governance.
 
The team consist of Chief Executive Officer Bernt Omdal, Chief Financial Officer Vidar Jerstad, Chief
Operating Officer Tore
 
Lillestø, Chief Human Resources Officer Tor
 
Asbjørn Grændsen, and Chief Commercial Officer Andreas Kjøl (from 09.
December 2024). Members of the Company’s management are not members of the Board, but they do attend Board meetings.
The Audit Committee consist of Ørjan Svanevik and Fredrik Platou. There are no non-executive
 
members in the Management team. There are
no employee representatives in the Management team, Audit Committee or Board of Directors.
 
The Board of Directors have one female
Director, giving 25% female ratio.
ESRS 2.22 – The roles and responsibilities of the administrative, management and supervisory bodies
The Management team in SEA1 are responsible for the oversight of impacts, risks and opportunities (IRO) for all aspects of the daily operations
including sustainability. Management team receives relevant
 
insights from other responsible bodies within the organisation, such as the Group
Accounting Director, ESG
 
Director and the HSEQ and Crewing Director and their respective departments within the Company (Finance, ESG
and HSEQ).
The responsibilities of ascertaining the sustainability impacts, risks and opportunities of the Company are delegated to the ESG Director and
the ESG department for gathering the relevant information before
 
presenting it to the Management team for review.
 
There are no strict
policies within the Company relevant to the handling and administering of IRO-data, but rather an aspect of the ESG departments job
descriptions. The ESG department works closely with Finance, Operations and HSEQ to gather the relevant IROs. This work is done in
correspondence with the Double Materiality Assessment of the Company, which also involves the process of Stakeholder
 
engagement.
Once the process is complete, the findings are presented to the Management team who evaluate the IROs and Double Materiality Assessment
before presenting for the Board of Directors. Together
 
they evaluate the suggested set targets before implementing them into
 
long-term plans
whose progress are monitored by the Management team
 
doc1p17i0
 
Sea1 Offshore Inc. Annual Report 2024
16
ESRS G1.5 Role of administrative and management bodies
Most members of the management team have 20-30+ years of experience within the maritime industry.
 
●
Our CEO has more than 25 years of experience within the maritime industry, including chartering, operations and shipbroking.
 
●
SEA1’s CFO holds a degree in Executive Master
 
of Business Administration and is an Authorized Financial Analyst (AFA/CEFA)
 
and
has experience from various positions in banking.
 
●
The CCO has had positions in Viking Supply Ships as CCO and Project Director and earlier held positions with sale and marketing.
 
●
Our COO previously held the position as General Manager and HR Manager in Sea1 Offshore and HR Director in previous
employment.
 
●
The CHRO holds a degree in Master of Science in international shipping, a four-year degree in Economics and Business
Administration and a Master in Management. Prior to employment in Sea1 Offshore, he was Marine HR Director.
 
ESRS 2.23 – Description of determination of whether appropriate skills and expertise are available or will be developed
The administrative, management and supervisory bodies have skills and expertise available to them for the overseeing of sustainability
matters. Further,
 
members of the Management team have access to more knowledgeable assets on sustainability in the form of the ESG
department and its ESG team/working group (as listed above).
ESRS 2.AR 3 – 2.AR 5 The administrative, management and supervisory bodies overview
The global (corporate) organisation chart for Sea1 Offshore Inc. is given below,
 
where the ESG Director has a special responsibility for the
sustainability work and focus.
 
GOV-2 Sustainability matters addressed
 
by the undertaking’s
administrative, management and
supervisory bodies
ESRS 2.24 – 2.26 Management and sustainability
The Board of Directors and Management team are informed about sustainability matters
 
through various means. For informing the
Management team they have access to all ESG-department digital files, receive ESG Working Group Minutes of Meeting (MOM) reports,
 
and
have bi-weekly meetings between CEO and ESG Director.
 
Members of the Management team have also been part of several ESG workshops in 2024 which have kept them up to date
 
on all ongoings
within the Double Materiality Assessment process and for the annual sustainability statement progression. Hence, all IROs found material in
the Double Materiality Assessment conducted in 2024 have been addressed by the Management team. Further,
 
for the Board, they are
informed by the Management team during Board meetings as sustainability is on the agenda of every Board meeting and is also included
when relevant in management reports.
 
Through the Board meetings, the material IROs have been presented by the Management team and addressed by the Board for 2024.
 
This
allows both the Board and Management team to make informed decisions regarding sustainability matters
 
for Sea1 Offshore.
 
 
 
 
Board of Directors’ Report
17
Sea1 Offshore Inc. Annual Report 2024
GOV-3 Integration of sustainability
 
-related performance in incentive schemes
ESRS 2.27 – 2.29 Incentive scheme
There are no incentive-schemes directly related to sustainability performance at Sea1 Offshore
 
that are offered to members of the
administrative, management and supervisory bodies.
ESRS 2.AR 7 Renumeration
There is no renumeration report being made at Sea1 Offshore for 2024 as prescribed in articles 9a and 9b of Directive 2007/36/EC.
GOV-4 Statement on sustainability due diligence
ESRS 2.30 – 2.32 (ref. AR 8 – AR 10) – Statement on due diligence
As part of the Norwegian Transparency Act, SEA1 performed in 2024 an updated due diligence on human rights in the supply chain, prior to
the introduction of the ESRS. This Sea1 Offshore Account of Transparency
 
Act Due Diligence is published on the company web page. In
addition, the overall Risk Assessment of the Company is updated to reflect the aspects and risks of sustainability reporting, resulting in the two
documents complementing one another. See more information about the completed due diligence under ESRS
 
2.17.
In addition to the abovementioned, SEA1 follows up on environmental and administrative due diligence measures through the ISO
 
9001 and
14001 standards, as well as following the ISM-code. These are followed through the Company’s Environmental
 
Aspect Registers for vessels
and office locations.
 
Further, ESG department has arranged internal workshops
 
following the due diligence process to ensure compliance with relevant standards
and frameworks, including preparations for the CSRD sustainability statement.
A due diligence process on climate risk has also been performed with a detailed climate analysis for two different
 
scenarios and a following
company resilience analysis.
ESRS 2.AR 10 Reference to international instruments
Due diligence on human rights in supply chain has been performed in line with UN Guiding Principles and OECD Guidelines.
Due diligence in climate and environment has been followed in accordance with the ISO 14001 standard and IMO & MARPOL-regulations.
GOV-5 Risk management and internal controls over sustainability
 
reporting
ESRS 2.34 – 2.36 Risk management on sustainability reporting
Risk assessment and internal control is a natural part of SEA1’s sustainability reporting. The Company is using the business management
system (BMS) software Unisea as the control system where
 
all strategic, operational and sustainability documents and policies are live and
updated. This system is applied globally, covering
 
all onshore offices and vessels, ensuring consistency and reliability in our reporting
processes.
Key risks identified include data completeness and accuracy,
 
particularly in emission reporting. To mitigate these risks, we
 
have implemented:
●
Data Validation Controls: Automated and manual checks to ensure data
 
integrity.
●
Competence Development: Targeted
 
training for relevant personnel on sustainability metrics and reporting standards
 
.
The document Overall Risk Assessment evaluates severities, likelihood, tasks/activity and those at risk and score their importance,
 
including
the Company’s Control Measures and assessment on the sustainability reporting process, see extract from document below.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sea1 Offshore Inc. Annual Report 2024
18
Task /Activity
Hazard Description
At Risk
Control Measures
Residual
risk
Mitigating 
measures
Risk management
and internal
controls over
sustainability
reporting
 
(ref
ESRS DR GOV-5)
 
1. Faulty or/and missing
emission data
2. Use of un-accurate external
data sources
 
3. Faulty reporting
 
of data
 
to
stakeholders (stock exchanges,
investors, clients)
 
4. Invoicing of faulty discharge
cost towards clients (CO2 cost,
EU, ETS etc.)
Reputation
/ Financial
1.
 
External auditors and
audit programs
2.
 
Internal audits with ESG
group
3.
 
Validation
 
according to
IMO DCS and EU MRV of
R.O. (DnV)
4.
 
Use of internal digital
sources (Høglund, Maress,
OCS, Unisea BMS) and
validation
 
by
 
internal
departments
ALARP
1.
 
Report deviations
internally and
externally as required
2.
 
Internal
audits/investigation
 
to 
expose root cause
3.
 
Transparency and
learn
In addition, reference is made to the Environmental Management Plan, the Environmental
 
Aspect Register–
 
Office & Environmental Aspect
Register – Vessels. All these documents work in tandem and complement the Overall Risk Assessment and Hazard Identification and Risk
Assessment documents.
The handling of the risk assessments and all related work is done by the HSEQ department and is closely linked to the sustainability work. The
assessed risks and results from internal controls are handed to the HSEQ and Crewing Director,
 
and only relayed to the administrative,
management and supervisory bodies if the assessed risk and internal control results warrant the attention.
We integrate the findings of our risk assessments and internal controls into relevant
 
internal functions and processes. By integrating risk
assessments and internal controls into key functions, the goal is to effectively manage sustainability
 
risks and enhances our resilience. We are
in a process of formalizing our approach to internal control even further.
 
We are committed to continuously improving our risk management
and internal control system to ensure the quality and reliability of our sustainability statement.
ESRS 2.AR 11 – Risk management and internal controls over sustainability reporting
As stated, the Overall Risk Assessment has been updated to include risk assessment on the sustainability reporting process. In addition, a
procedure on internal control of sustainability data and reporting will be added in the coming period. Nevertheless, all gathered data
 
from
vessels is being monitored and evaluated by both Company crews and the respective onshore departments.
SBM-1 Strategy,
 
business model and value chain
ESRS 2.37 – 2.39 Strategy
Sea1 Offshore is a leading vessel provider to clients in oil & gas and renewable energy market. The company’s
 
strategy is to grow within the
offshore support vessel market and provide cost efficient solutions in close cooperation with customers
 
by applying state of the art technology
and firsthand experience.
ESRS 2.40 Key elements of general strategy
 
that relate or affect sustainability matters
The breakdown of Company workforce is given under DR S1-6.
Sea1 Offshore provides vessel activities offshore such as anchor handling and towing, platform supply,
 
well intervention services, subsea
operations, walk-to-work and trenching operations for windfarms.
 
Our clients are typically within in the offshore oil and gas industry, in
addition to the renewable energy sector.
 
SEA1 operates on a global scale with vessel activities in typically North Sea, Brazil, West African,
Australia and Asia.
 
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19
Sea1 Offshore Inc. Annual Report 2024
Of the Sea1 Offshore Inc. total net revenue of 340.825MUSD, see consolidated Income Statement,
 
Note 4 Segment Reporting, there are zero
revenue from Taxonomy
 
-aligned economic activities and zero revenue from coal, chemical production, tobaccos and weapons. All revenues
derive from the maritime sector.
Please note the Company have no sustainability-related goals in terms of significant groups of products and
 
services, customer categories or
geographical areas. There is no assessment of the current significant services, markets and customer groups in relation to the Company’s
sustainability-related goals.
ESRS 2.42 Value Chain overview
Four different business segments are identified in the Sea1 Offshore business model:
Vessel Management:
Vessel Management are the onshore staff and department needed to run the vessels operations in accordance with the International Safety
Management Code (ISM) by IMO, consisting of different departments such as Operations, CMMS, Supply Chain, Crewing & HR, HSEQ and
Chartering.
Vessel Operations:
The vessel activities offshore typical anchor handling and towing, platform supply, well intervention services, subsea operat
 
ions, walk-to-work
and trenching operations for windfarms.
Newbuilding:
This company has built more than 40 vessels since 2005, hence newbuilding activities are an integral part of the business. For 2024, no
newbuilds are actively ongoing, besides signing of two new OSCV ST-245 vessels from Cosco as announced 4th November 2024 on Oslo Stock
Exchange, with delivery date in 2027.
Financing:
Financing plays a vital role in the company,
 
both for funding operations (OPEX, CAPEX), but also newbuilds and company loans, insurance,
commercial contracts and guarantees.
The SEA1 value chain are visually presented in the flowchart as follows where the four business segments are given in bold:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sea1 Offshore Inc. Annual Report 2024
20
Key activity is to be an offshore vessel provider,
 
where the vessels are main assets including crew competence and procedures, supporting
clients within exploration and production of oil & gas-resources, development of offshore wind farms,
 
including installation and maintenance.
Key suppliers to SEA1 are within crew manning agencies, bunkers and lube oil providers,
 
spare parts and equipment makers (OEM),
transportation and warehousing companies, shipyards and other vessel maintenance facilities.
Main customers are within oil & gas, both energy companies but also subsea EPCI contractors, renewable energy and scientific drilling.
SBM-2 Interests and views of stakeholders
ESRS 2.43 – 2.45 Stakeholders
For the 2024 reporting period Sea1 Offshore has identified a number of relevant stakeholders across
 
the entirety of its value chain which
include banks, customers, suppliers, investors and shareholders, and own employees.
 
The stakeholder engagement process is based on interviews conducted in 2022. Additional key stakeholders
 
were added in 2024, which
resulted in updated requests for this group. Among those were new banks, where one of the banks was interviewed, in addition to the new
main shareholder Kistefos AS. For the 2024 sustainability report, one stakeholder per stakeholder
 
group was engaged. Next year more
involvement per key stakeholder group is planned.
Below is an aggregated view of the different stakeholder groups
 
with highlighted sustainability topics that are important to them in relation to
SEA1.
Stakeholder Group
Interests and views
Stakeholder Dialogue
Banks
(Existing)
Anti
 
-corruption
 
&
 
-bribery
 
and sanctions
 
are
 
important
 
matters
 
to
 
banks
 
in 
terms of giving out loans and investments. Employee health and safety are
key topics in the maritime
 
sector so a
 
focus
 
on HSEQ
 
is important.
 
Energy
management and ESG KPI requirements and criteria must be met and having
a strong ESG profile.
 
Good
 
labour
 
practice is
 
important
 
to
 
ensure good 
working conditions
 
in line
 
with
 
tariff
 
agreements. 
Regular meetings
 
with
 
CFO
and Finance Department
Customers
(Existing)
GHG emissions and energy management is important, so having access to
alternate fuels or battery
 
packs aboard
 
is
 
a positive.
 
Focus on complying with 
labour and workers’ rights, especially shift
 
hours
 
for ship crews.
 
Regular client meetings
 
and
customer feedback process
Suppliers
(Existing)
Anti
 
-corruption
 
&
 
-
 
bribery and
 
sanctions
 
is
 
an important
 
topic as
 
it
 
could 
damage the Company’s reputation.
 
Health
 
and safety
 
is
 
a key
 
focus
 
area,
including diversity, equality and inclusion (DEI). SEA1 has great potential
 
with
investments in green technology, and a greener profile
 
will
 
attract
 
more 
investors. The Company has an important impact and focus on working
environment and conditions
 
in their
 
supply chain.
Regular meetings
 
with
suppliers, and due diligence /
audits and reviews
Flag states
Focus on keeping up to date with the latest news on corruption incidents in
the industry, as well as obtaining an understanding of the increasing number
of complex sanction
 
packages. DEI
 
focus
 
of
 
including
 
more women
 
in the
workforce. In relation
 
to the
 
Norwegian
 
Transparency Act, SEA1
 
will
 
notice 
an increasing demand for information
 
and documentation
 
related to
 
its 
supply chain. SEA1 perform well on social issues, especially related
 
to their
employees’ safety at sea.
Dialogue with Class (on
behalf of Flag). ISM audits by
Class. Flag State inspections
Board of Directors
Anti
 
-corruption
 
&
 
-bribery
 
and sanctions is
 
a critical
 
topic that needs
 
daily 
focus. HSEQ is the key ESG topic that the board receives monthly
 
updates on.
Equality, diversity and inclusion is another central social topic that will
 
be of
interest going forwards. SEA1 has a strong focus on safety, emission
Regular Board meetings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Board of Directors’ Report
21
Sea1 Offshore Inc. Annual Report 2024
reductions
 
and alternative
 
fuels.
 
These
 
initiatives
 
impact
 
the
 
P&L due
 
to
 
high 
investment costs. There is a need for a clearer long-term plan for the
 
total
fleet.
 
Additionally,
 
there should
 
be
 
a focus
 
on
 
what
 
the
 
net
 
zero
 
ambitions 
will cost for the Company. There is also a need to analyze how ESG policies
and activities
 
will impact shareholder value, both short-
 
and
 
long-term. 
Owners
Anti
 
-corruption
 
&-bribery
 
and sanctions
 
activities
 
should
 
be carried out
 
with 
a high focus on ethical standards and in line with the UNs Sustainable
Development Goals and the UN Global Compact's Principles of
 
human rights,
labour standard, environment and anti
 
-corruption.
 
HSEQ
 
is
 
crucial
 
in the
maritime
 
sector and employee
 
well-being
 
should be top priority. SEA1
 
must
have clear focus on minimizing GHG emissions and maximizing vessel
efficiency
 
through technology
 
investments
 
and vessel upgrades. 
Through Board meetings
 
Management
Anti
 
-corruption
 
&-bribery
 
and sanctions is
 
an
 
area of high
 
risk
 
in the
 
shipping 
industry. Employee HSEQ is an area of key concern for the Company.
Moreover, a focus is also on human rights in the supply chain, i.e. doing
proper due diligence. A key material impact is reducing CO2 emissions
 
and
energy consumption.
 
The challenges
 
to
 
meet
 
the climate ambitions
 
revolves 
primarily around technology.
Weekly management
meetings,
 
Annual
Management Review
Employees / Seafarers
Ecological impacts are important, especially related to potential
 
oil
 
spills.
HSEQ is important, especially relating
 
to
 
handling
 
chemicals. Equality,
diversity and inclusion should be key focus area to attract
 
more women
 
into
the workforce, especially offshore.
 
GHG
 
emissions
 
is
 
a huge
 
impact that the
Company has and should be prioritized.
 
SEA1 have good
 
routines
 
on ESG 
topics in place. For the climate and environmental impacts, there are tools
and reporting
 
systems
 
in
 
place ensuring good data and
 
monitoring
Town hall meetings,
 
annual
performance reviews, spot
surveys, workshops
 
Nature
(Silent Stakeholder)
Recognition
 
of
 
maintaining
 
and protecting
 
ecosystems and natural
 
resources. 
Climate stability, biodiversity preservation,
 
and pollution
 
reduction
 
are key 
concerns.
Climate risk analysis, double
materiality analysis,
Environmental Aspect
register
The purpose of stakeholder engagement is to ensure that SEA1’s
 
sustainability strategy reflects stakeholder priorities and societal demands.
This helps us identify both sustainability risks and opportunities, while shaping our ESG priorities in a way that will support SEA1’s strategy and
business model amendments going forward.
ESRS 2.AR 16 Stakeholders and business model
Stakeholders’ interests are taken
 
into account through Board meetings and Annual Shareholder Meetings (AGM).
SBM-3 Material impacts, risks and opportunities and their interaction with strategy
 
and business
model
ESRS 2.46 – 2.47 Strategy and business model
The company’s strategy is to grow within the offshore
 
support vessel market and provide cost efficient solutions in close cooperation with
customers and by applying state of the art technology and firsthand experience. Our business model is concentrated around the strategy’s
objective focusing on the core values of the Company to be caring, committed and competitive.
ESRS 2.48, ESRS 2.AR 17 + AR 18 IROs interacting with strategy and business model
From the Double Materiality Assessment (DMA), the following material impacts, risks and opportunities (IRO’s) have been identified as
imperative for the Company’s business model and strategy.
 
They are listed below and sorted according to the value chain phases; upstream,
own operations and downstream.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sea1 Offshore Inc. Annual Report 2024
22
The list of material impacts from the DMA includes ID number, value-chain stage (upstream,
 
own operations, downstream), IRO description
and category (Impact or Financial), direction of IRO (positive or negative impact, and financial risk or opportunity), scoring of IRO (low,
medium and high), and relevant ESRS topic and sub-topic.
The listed IROs are essential to the running of the Company. Going forward,
 
input from the double materiality analysis will be important for
SEA1’s future strategy
 
and business model. Risks and opportunities are certain to arise based on the abovementioned IROs, examples are
given for each, as they were found in our DMA process.
ESRS
Topic
ESRS Sub-
Topic
Impact, Risk or Opportunity
Category
Time
Horizon
Value-Chain
IRO ID
E1 Climate
Change
Climate
Change
Mitigation 
SEA1's fleet
 
of vessels
 
contributes to climate change
through CO2 emissions generated during maritime
operations.
Negative
Impact
Short Term
Own
Operations
1
SEA1 faces a financial
 
risk from
 
potential
 
taxation 
specifically
 
targeting
 
CO2 emissions
 
produced by
 
its 
fleet
 
of vessels during
 
maritime
 
operations. 
Financial
Risk
SEA1 ships are involved in the oil and gas industry
which has negative
 
impacts
 
on climate and ocean
through its operations.
 
This
 
is
 
partially
 
mitigated 
through alternate fuels and efficient
 
operations.
Negative
Impact
Short Term
Own
Operations
2
SEA1's continued
 
operations
 
in the oil
 
& gas
 
/ 
offshore
 
sector
 
will
 
lead to further
 
negative
 
impacts 
on climate and environment / wildlife which will
affect
 
Sea1's PR standing closer
 
to
 
2050
 
without
 
the
necessary measure for a green transition.
Reputation
Risk
SEA1 vessels are involved in the renewable sector,
supporting
 
offshore
 
windfarms through the 
deployment of sea anchors and trenching
operations.
 
Still
 
there are release of
 
GHG emissions 
that negatively
 
impact the
 
climate during their
operations.
Negative
Impact
Short Term
Own
Operations
3
With more increased activity
 
in the renewables
sector means increased vessel activity
 
and higher
negative
 
environmental
 
impacts.
Reputation
Risk
Vessels owned by external partners but managed by
Sea1 Offshore,
 
contribute to climate change
through CO2 emissions during maritime
 
operations.
Negative
Impact
Short Term
Downstream
4
E2
Pollution
Pollution
 
of
Water
The risk of oil spills during vessel refuelling in the
upstream value chain could pose a negative
 
impact
on the environment, contributing
 
to
 
pollution
 
of 
water.
Potential
negative
Impact
Short Term
Upstream
5
Oil spill from vessels during operations
 
or
 
transits at
sea cause serious pollution
 
to
 
water
 
/ sea (and
potentially
 
land)
 
within
 
the
 
near vicinity of
 
the
vessel.
Potential
negative
Impact
Short Term
Own
Operations
6
Oil spills can lead to serious water pollution
 
and
affect
 
marine
 
life leading to
 
bad PR
 
for the
Company, in addition
 
to
 
high cost
 
for
 
cleanup, even
though covered by insurance.
Reputation
Risk
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Board of Directors’ Report
23
Sea1 Offshore Inc. Annual Report 2024
During operations,
 
vessel discharges,
 
including
 
bilge
water, ballast water, and wastewater, leading to
pollution
 
of
 
water
Negative
Impact
Short Term
Own
Operations
7
Pollution
 
of
Air
When in port, vessels running on diesel engines or
their own power contribute to local pollution
 
in the
form of SOx and NOx gases and particles
 
that
 
are
emitted
 
into
 
cities.
Negative
Impact
Short Term
Own
Operations
8
Utilizing
 
shore power
 
where
 
available demonstrates
SEA1's commitment to sustainability, enhancing
public relations
 
with
 
clients and the community.
Reputation
Opportunity
SEA1 owned vessels, primarily powered by fossil
fuels, contribute to local pollution
 
to
 
air,
 
releasing
SOx and NOx gases during operations.
Negative
Impact
Short Term
Own
Operations
9
FuelEU, EU MRV and ETS are regulations
 
that
 
have
 
/
will set in effect
 
(2027)
 
and
 
regulate
 
emissions
globally, and these regulations
 
will
 
be enforced by
fines
 
/ fees for the
 
GHG
 
emissions.
Financial Risk
Vessels operated and administered by Sea1
Offshore,
 
though
 
owned by external partners,
primarily powered by fossil fuels, contribute to local
pollution
 
to
 
air,
 
releasing SOx
 
and
 
NOx
 
gases during
operations.
Negative
Impact
Short Term
Own
Operations
10
During operations
 
clients can
 
make
 
decisions on
vessel performance such as fuel type and speed.
This may result in increased emissions and pollution
to air from vessels if operated at a non-
environmentally friendly level which may result in
increased vessel expenses.
Reputation
Risk
S1 Own
Workforce
Equal
treatment and
opportunities
for all
Lagging behind competitors
 
in
 
digital advancements
could lead to decreased operational
 
efficiency
 
and 
revenue loss, while also making SEA1 a less
attractive
 
employer
 
for
 
younger
 
talent.
Financial
Risk
Medium
Term
Own
Operations
11
Diversity, equity and inclusion (DEI) Initiatives.
 
The 
predominantly male offshore
 
workforce
 
at SEA1 can
lead to potential
 
harassment or exclusion of
 
female
workers, despite being uncommon. This highlights
the importance of maintaining gender balance
policies, a robust code of conduct, and ensuring
open communication
 
channels to
 
foster
 
a safe
 
work
environment for women.
Negative
Impact
Short Term
Own
Operations
12
Without investment in recruitment and education
programs of future seafarers there is a danger of
losing valuable competent workers, both male and
female that require equal treatment and pay.
Reputation
Risk
Short Term
Own
Operations
13
Other work-
related rights
A breach of the company's IT system could result in
the unauthorized disclosure of sensitive
 
workforce
information,
 
violating
 
GDPR
 
and impacting
 
data 
privacy.
Potential
Negative
Impact
Short Term
Own
Operations
14
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sea1 Offshore Inc. Annual Report 2024
24
Breach into data-servers and outsider access to
internal systems and sensitive
 
information
 
about 
the workforce.
Breaching GDPR regulation
 
could also
 
imply large
fines
 
from the
 
Norwegian Data
 
Protection
 
Authority 
(Datatilsynet).
Financial Risk
Working
Conditions
The inherent dangers of offshore
 
work
 
necessitate
stringent health and safety measures for SEA1's
offshore
 
workers.
 
Serious and potentially
 
lethal 
accidents underscore the importance of
comprehensive safety training and effective 
emergency procedures.
Potential
Negative
Impact
Short Term
Own
Operations
15
S2 Workers
in the
value chain
Other work
related rights
Sea1 Offshore
 
affect
 
value chain
 
workers
 
negatively 
if they work in a country or company that does not
follow international
 
regulation
 
and
 
worker
 
rights. 
(Ref. shipyards, etc). The use of shipyards in remote
areas need special attention
 
due
 
to high
 
risk for 
adverse impact on human and labor rights.
Negative
impact
Short Term
Upstream
16
G1
Business
Conduct
Corporate
culture
Cyber Security is pivotal for the Company. If the
system is breached sensitive
 
information
 
may
 
be 
leaked/taken. Info on financial
 
performance,
sensitive
 
Company
 
information,
 
information
 
on 
personnel/workforce, and information
 
on
clients/suppliers/partners.
Potential
negative
Impact
Short Term
Own
Operations
17
High-end vessel services provided by Sea1 Offshore
to clients within the different
 
maritime
 
offshore 
segments that are in line with the Company's
visions and values of being Caring, Committed
 
and
Competitive. 
Financial
Opportunity
Short Term
Own
Operation
18
Corruption
and bribery
In a global offshore
 
company
 
like
 
SEA1
 
the
workforce is exposed to many different
 
locations, 
environments and cultures. This might leave them
exposed to cases of corruption
 
and bribery.
Potential
Negative
Impact
Short Term
Own
Operations
19
Cases of corruption
 
and bribery can be costly
 
for the
Company in the form of reputation
 
and possible
court cases.
Reputation
Risk
The breach of sanctions
 
imposed
 
by
 
OFAC
 
(US),
 
UK,
EU, UN, Norway and other relevant bodies. These
negative
 
impacts
 
can come
 
in the form
 
of
corruption
 
cases
 
which
 
also
 
lead to lawsuits,
 
fines 
and imprisonment. Finally, the breach of law can
impact public relations,
 
loss
 
of contracts, and
 
will
result in a lack of trust in the world of business.
Potential
Negative
Impact
Short Term
Downstream
20
Non-compliance with regulations
 
related to
corruption
 
and bribery,
 
including inadequate
 
vetting 
and checks of ships, threatens SEA1's legal
operations
 
and could
 
result in severe
 
legal
 
and
financial
 
repercussions. The
 
negative
 
impacts on
 
the 
Company can affect the board of directors,
management and other personnel in the form of
fines,
 
convictions,
 
lawsuits
 
and imprisonment. 
Financial Risk
 
 
 
 
 
 
 
 
 
 
 
 
Board of Directors’ Report
25
Sea1 Offshore Inc. Annual Report 2024
Management
of
relationships
with suppliers
 
Poor relationships
 
with
 
critical
 
suppliers can
 
lead to 
increased costs for SEA1 due to potential
 
supply
chain disruptions
 
and
 
the
 
need
 
for
 
alternative 
sourcing. Key importance to the successful running
of operations
 
are key suppliers
 
who
 
provide
 
the
Company with spare parts, manpower, extra
services, etc. Without these key players the
Company will have a harder acquiring necessary
equipment and spare parts for vessels which will
negatively
 
impact
 
operations
 
and might
 
lead to 
stranded assets in worst-case-scenarios.
Financial
Risk
Short Term
Upstream
21
We have not identified any IROs for which there is a significant risk of a material financial adjustment within 2025.
IRO-1 Process to identify and assess material impacts, risks and opportunities
ESRS 2.50 – 2.52 – Materiality assessment process
The Double Materiality Analysis (DMA) process as headed by the ESG department was an evaluation of the ESRS standards to find most
relevant topics to the Company and its operations. This was done using EFRAG’s
 
Oil and Gas sector guide in addition to our internal reviews
and evaluations.
 
As part of the ISO 14001 certification, the Environmental Aspect Register describe the Company’s process for
 
identification, evaluation and
classification of environmental aspects applicable to the marine operations in Sea1 Offshore. As such it was necessary to consolidate this
register in the process of identifying material E1, E2 and potentially E3 (which was deemed non-material for FY 2024) sub-topics.
The next phase was arranging workshops with the relevant departments within the Company as well as reaching out to key external
stakeholders such as owners and partners. Suppliers, banks and customers
 
had been engaged with at an earlier stage.
The objective of the workshops was for the various departments (HR, Marine HR, HSEQ, Operations, Finance and Supply Chain) to give their
input and help identify impacts, risks and opportunities (IRO) for all the material topics and giving inputs to the ESRS data points. The
workshops gave a gross list of IROs which then were given a materiality scoring by the ESG team.
Together with follow-up
 
workshops where the Finance department was involved and the feedback from external stakeholders,
 
the ESG
department listed the material IROs for Sea1 Offshore in the final phase of assessments. Once complete the findings were presented to the
Management team for review and approval. See also more information in next chapter 2.53.
For the FY 2024 through this DMA-process SEA1 has identified the following ESRS topics as material for reporting:
ü
E1 Climate Change
 
ü
E2 Pollution
 
ü
S1 Own Workforce
ü
S2 Workers in the Value Chain
ü
G1 Business Conduct
The ESRS topics E3 Water and Marine Resources, E4 Biodiversity and Ecosystems,
 
E5 Resource use and Circular economy, S3 Affected
Communities and S4 Consumers and End-users are all found non-material for reporting.
 
Hence, the following sub-topics under each material ESRS standard are found material (see also graphical
 
presentation):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Sea1 Offshore Inc. Annual Report 2024
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Material ESRS Topic
Material ESRS sub-topic 1
Material ESRS sub-topic 2
Material ESRS sub-topic 3
E1 Climate Change
Climate Change Mitigation
E2 Pollution
Pollution of Air
Pollution of Water
S1 Own Workforce
Working conditions
Equal Treatment and
Opportunities for all
Other Work-related Rights
S2 Workers in the Value Chain
Other Work-related Rights
G1 Business Conduct
Corporate Culture
Management of
relationships with Suppliers
Corruption and Bribery
ESRS 2.53 – Description of the process
 
Prior to initiation of the Double Materiality Analysis (DMA) the Company based its assumptions on the previously established standards of the
ISO 9001 and 14001 certifications, in addition to work done for the BMS Aspect Register document (ref.
 
due diligence description in chapter
2.14). The Company also reviewed the work done by its peers as preparation to have an overview of the maritime sector’s stand
 
ards and what
others have deemed material for the offshore branch.
The approach taken for the DMA, as described above, was a qualitative data-driven methodology which focused on identifying what KPIs and
metrics were already available to the Company and identifying which new ones that could be measured for 2024.
 
From these findings, the ESG team set a series of assessment criteria organised into four categories that address the different
 
aspects of the
CSRD sustainability reporting:
●
Firstly, the General Disclosures
 
as per ESRS 2 give general insight into the Company and its sustainability work and processes.
●
Secondly, Environmental Information,
 
focusing on the relevant aspects of ESRS E1 and E2 for the Company,
 
such as GHG emissions
in the different scopes (Scope 1, 2 & 3), and effects on climate, pollution and EU Taxonomy
 
alignment.
●
Thirdly, Social Information, where the focus
 
is on which metrics and KPIs were available on its own and its value chain workforces.
Worker satisfaction, inclusion and workers'
 
rights, health and safety, etc.
●
Finally, Governance Information, looking into business conduct, supplier engagement and corruption & bribery cases.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Board of Directors’ Report
27
Sea1 Offshore Inc. Annual Report 2024
The Company’s Overall Due Diligence work and documents was a key anchor for the ESG
 
team’s continued work. As required by the
Norwegian Transparency Act, Sea1 Offshore had conducted a due diligence process primarily focusing on its
 
own workforce and that of its
supply/value chain. The Aspect Register was also included as an anchor point for the environmental aspect of the double materiality
assessment and analysis.
 
In the process to identify, assess and monitor IROs the primary focus fell on workforce,
 
pollution and climate. How the SEA1 fleet pollutes and
affect water,
 
and how its greenhouse gas emissions affect climate. Business relations was also considered on business conduct and corporate
culture. Geographical importance on IROs were only relevant in cases surrounding sensitive operation areas
 
such as Australia and Brazil. The
majority of material IROs are connected or directly caused by the Company’s own operations.
Key internal and external stakeholders were
 
consulted, and external consultants. Their inputs and guidance helped the ESG team identify the
right methods of scoring and setting thresholds for the identified IROs, see details on sub-chapter 2.59.
Processes to identify, assess and manage impacts and risks are integrated
 
into the undertaking’s overall risk management process and used to
evaluate the undertaking’s overall risk profile and risk management processes. This is done through the experience and work performed by
the HSEQ department with their Aspect Register,
 
Overall Risk Assessment, Quality Management Plan, Overall Due Diligence and the
Company’s Code of Conduct.
 
In the decision-making process regarding the double materiality assessment and sustainability statement, most decision have been made by
the ESG Director who also acts as project leader for the process. However,
 
all major decisions and changes have been reviewed and approved
by the management team and board of directors.
 
As 2024 is the first year of CSRD and ESRS sustainability reporting for Sea1 Offshore there are
 
no integrated processes within the Company to
identify, assess and manage opportunities that are integrated into
 
the undertaking’s overall management process. However,
 
it is partially
covered in the Company’s Overall Risk Analysis, ISO 9001 and 14001 standards, Quality Management Plan and in the Management Review.
 
All data gathered for the DMA and the final sustainability statement have been taken
 
from the miscellaneous software solutions in the
Company. These data sources gather
 
all necessary information from the Company’s global operations and have the documents that aid in the
Company’s business conduct.
ESRS 2.59 Material information and thresholds
The material information for disclosure was selected from the Company’s related
 
IROs that were determined material from the set threshold
scorings put in place by the ESG team. The three scoring categories are Low,
 
Medium and High, where Medium scored IRO’s are set on a
“Watch” list as these IRO’s might change in score
 
over the next reporting period, and High scored IRO’s are all reported here.
For the DMA thresholds in both impact- and financial materiality were set between 1 and 5 in likelihood and severity/magnitude. Similar
rankings were set for scale, scope and whether they affect human rights of people involved. The threshold
 
for material IROs is set to a score of
15 and higher.
In addition, Severity, Likelihood and Irremediable character are
 
the primary factors that determine an impact’s materiality score, or Magnitude
and Likelihood in the case of financial materiality, ranked
 
from 1-5. Any likelihood that is scored 3 or higher is immediately material if the
scoring of severity/magnitude is scored 5 (), low likelihood score (1-2) with a severity/magnitude score of 5 is placed on watchlist.
While the Company currently has no financial effects mapped towards IROs on sustainability matters,
 
the ESG team in concordance with the
finance department decided on the following financial thresholds measured in operating margin (EBITDA) on scale 1-5.
Scale
Financial Impact on EBITDA
Dependency
1
<1 MUSD
Very Low
2
1-5 MUSD
Low
3
5-15 MUSD
Medium
4
15-25 MUSD
High
5
25< MUSD
Very High
ESRS E1 IRO-1 – Climate Impact, Risks and Opportunities assessment
In addition to the abovementioned double analysis method, SEA1 has built upon the foundation of previous climate analysis in order to
identify and assess climate-related impacts. Initially, our GHG inventory provided critical
 
insights into key emission sources across operations
and the broader value chain. This was complemented by the structured approach provided by the existing environmental
 
management system
Sea1 Offshore Inc. Annual Report 2024
28
aligned with ISO 14000 standards. Additionally, a previously conducted double materiality assessment was revisited and integrated,
 
ensuring
continuity and comprehensive understanding of SEA1's climate impacts.
When identifying climate-related risks and opportunities, SEA1 maintained this comprehensive value chain perspective. The analysis involved
evaluating potential financial implications—both negative and positive—that climate change could pose on business operations and market
positioning. Following the completion of the double materiality assessment, SEA1 conducted a further in-depth climate risk and opportunity
analysis, the details of which are described on the next pages. The Climate Risk & Resilience Analysis is given under E1-19.
Following the completion of a Double Materiality Assessment (DMA), Sea1 Offshore conducted a climate risk assessment to further refine its
understanding of climate-related risks and opportunities. While the DMA serves to identify and prioritize material sustainability topics based
on their financial and impact significance, the climate risk assessment delves deeper into the specific risks associated with climate change.
 
This process involves evaluating risks across multiple scenarios, assessing potential financial and operational implications, and identifying
necessary mitigation measures. Given the difference in purpose and level of detail, the two assessments are complementary rather
 
than
directly aligned one-to-one. Instead, the climate risk assessment builds upon the DMA findings, breaking down overarching material topics
into more granular risk factors, which collectively inform compliance with ESRS
 
2 and SEA1’s broader risk management strategy.
 
Scope and methodology of the climate risks and opportunities assessment:
The climate risk assessment was conducted in January 2025 and evaluated climate-related physical risks and opportunities in a high emissions
scenario and climate-related transition risks and opportunities in a low-emissions scenario. To inform
 
the identification and assessment of
physical and transition risks and opportunities over the short-, medium- and long-term, two high-level scenarios were chosen and further
tailored to reflect SEA1’s
 
business model and circumstances.
 
In accordance with the recommendations described in ESRS E1, the scenario analysis was based on established practices in addition to TCFD’s
Technical Supplement on “The Use of Scenario Analysis in Disclosure of Climate-Related Risks and Opportunities” (2017) and TCFD’s
 
“Guidance
on Scenario Analysis for Non-Financial Companies” (2020).
 
The low-emissions scenario that is used for evaluating transition risks and opportunities is based on the Net Zero Emissions by 2050 (NZE)
pathway as defined by the International Energy Agency (IEA). This scenario aligns with global commitments to limit warming to 1.5
°
C above
pre-industrial levels, reflecting a rapid transition to low-carbon energy systems.
 
The high-emissions scenario is based on the Fossil-Fueled Development (SSP5-8.5) pathway from the IPCC (2021), which assumes continued
reliance on fossil fuels with minimal climate policy intervention and temperatures increase to over 4
°
C by 2100.
To enhance the relevance of these two scenarios to SEA1, the high-level scenarios were complemented with
 
industry-specific sources. The
low-emissions scenario (NZE) follows a trajectory where global carbon neutrality is achieved by 2050, reducing long-term physical risks but
imposing significant transition risks, such as higher carbon pricing, policy-driven shifts away from fossil fuels, and increased competition from
alternative fuels. Oil and gas exploration and production activities are declining rapidly,
 
particularly in the offshore sector and IMO is steadily
progressing towards their 2050 ambitions.
 
The high-emissions scenario (SSP5-8.5) assumes continued economic growth powered by fossil fuels, leading to severe physical climate
impacts, including higher operational disruptions from extreme weather,
 
rising insurance costs, and geopolitical instability related to resource
dependencies. These two contrasting narratives effectively address Sea1 Offshore’s
 
key risks and uncertainties, providing a strategic
framework for decision-making.
Each scenario incorporates key forces and drivers
 
to evaluate the implications for Sea1 Offshore:
●
Policy Assumptions: The low-emissions scenario assumes stringent international climate policies, including carbon pricing (World
Bank 2024), emissions caps, and incentives for renewable energy adoption. International Maritime Organization (IMO) is steadily
progressing towards the 2050 ambitions. The high-emissions scenario assumes limited policy intervention, continued reliance on
fossil fuel subsidies, and fragmented global climate governance.
●
Macroeconomic Trends: The low-emissions scenario anticipates a structural
 
shift in global energy markets, with investments in
renewables surpassing fossil fuel development by 2030. The high-emissions scenario projects continued growth fueled by
hydrocarbons, resulting in sustained oil and gas demand (BP 2024, OPEC 2024).
●
Energy Usage and Mix: In the low-emissions scenario, rapid increases in electrification of transport, green hydrogen, and offshore
wind expansion (GWEC 2023, IEA Offshore Wind Outlook) are factors relevant for
 
SEA1. Conversely,
 
in the high-emissions scenario,
coal and oil remain the primary energy sources, leading to increased greenhouse gas emissions and environmental risks.
 
Board of Directors’ Report
29
Sea1 Offshore Inc. Annual Report 2024
●
Technology Assumptions: The low-emissions scenario assumes rapid advancements in carbon capture, alternative
 
fuels, and
digitalization in shipping (DNV 2023), whereas the high-emissions scenario envisions slow technological adoption, reliance on
conventional fuels, and limited efficiency improvements.
Our scenarios are structured around three-time horizons: 2025 (short-term), 2030 (medium-term), and long-term. The short- and medium-
term definitions align with the timeframes recommended by ESRS and those used in our double materiality analysis. For the long-term
scenario development, 2050 was initially chosen to align with the International Maritime Organization's (IMO) ambitions and the net-zero
commitments of industry peers. However,
 
to better reflect the expected lifespan of our assets and align with our strategic
 
planning horizons,
the long-term horizon was adjusted to 2040 for the risk and opportunity assessment.
 
By selecting these scenarios, Sea1 Offshore ensures that it is covering a broad range of plausible climate risks and uncertainties, from a world
where stringent climate policies reshape the industry to one where fossil fuel reliance remains high. This approach allows us to stress
 
test
potential challenges, including transition risks, physical risks, and economic uncertainties, ensuring a resilient and informed business strategy.
Following the identification and description of the two scenarios, the process continued with the assessment of physical and transition risks
and opportunities across the short-, medium-, and long-term.
Through internal discussions and workshops, we analyzed how SEA1’s assets,
 
business activities and value chain may be exposed and sensitive
to identified physical hazards as well as transition events, creating gross
 
risks and opportunities for the company.
 
This assessment was conducted by estimating the potential financial effects (magnitude) of these risks and opportunities over the short-,
medium-
 
and long-term. The likelihood and duration of both physical hazards and transition events were
 
implicitly included in the two
scenarios, and the geospatial coordinates specific to our company’s locations and supply chains were only incorporated at a higher level.
Physical risks and opportunities:
For the assessment of physical risks and opportunities, we applied the high-emissions scenario based on the Fossil-Fueled Development (SSP5-
8.5) pathway from the IPCC (2021), identifying both chronic and acute climate hazards relevant to SEA1.
 
Acute hazards include extreme weather events and rougher wind and sea conditions, while chronic hazards encompass rising temperatures,
saline intrusion, ocean acidification, and sea level rise.
Building on the identified climate hazards, SEA1's assets and business activities could face varying degrees of exposure and sensitivity to acute
and chronic physical risks under the high-emissions scenario. These risks have the potential to impact operations and increase costs.
Acute physical risks, such as extreme weather events and worsening sea conditions, could pose immediate operational challenges.
 
Storm
surges, hurricanes, and stronger winds may increase the likelihood of ship damage, route delays, and higher wear
 
on critical equipment,
leading to increased maintenance and repair costs. Rougher sea conditions might extend transit times, elevate fuel consumption, and reduce
overall efficiency, potentially impacting SEA1’s
 
cost structure.
 
Additionally, as insurers reassess climate-related
 
risks, SEA1 may face higher insurance premiums or,
 
in some cases, potentially reduced
coverage availability,
 
exposing us to greater financial liabilities. While these risks present significant challenges, SEA1's existing fleet is
designed for extreme conditions, and its highly experienced crew may provide a degree of resilience in navigating harsh offshore
environments.
Chronic physical risks, including rising temperatures, increased salinity,
 
and higher sea levels, could introduce long-term challenges that may
gradually erode operational efficiency. Warmer
 
waters might accelerate biofouling, increasing drag on vessels, lowering fuel efficiency,
 
and
requiring more frequent hull cleaning and dry-docking. Higher salinity levels could contribute to corrosion, necessitating additional protective
treatments and maintenance investments. Rising sea levels may have localized effects
 
on port infrastructure and docking facilities, potentially
increasing costs for adaptation and maintenance, though these risks are expected to remain relatively manageable in the near
 
to medium
term.
Despite the physical and acute risks SEA1 would face in a high-emissions scenario, our analysis also identified potential opportunities that
would materialize in such a scenario, including increased demand for emergency response, infrastructure maintenance, and specialized
offshore services in harsher environments.
Transition risks and opportunities:
For the assessment of transition risks and opportunities, we applied the low-emissions scenario based on the Net Zero Emissions by 2050
(NZE) pathway as defined by the International Energy Agency (IEA), identifying climate-related transition events
 
relevant to SEA1 connected to
Sea1 Offshore Inc. Annual Report 2024
30
policy and legal, technology, market, and reputation.
 
In terms of policy and legal, stricter climate regulations are driving enhanced emissions
reporting obligations and imposing mandates on existing products and services, requiring companies to adapt to evolving compliance
requirements.
 
Regarding technology, the transition brings challenges related
 
to the cost and availability of new technology,
 
the need for adaptation, and the
immaturity of the surrounding ecosystem. At the same time, technological advancements offer opportunities for
 
increased efficiency and
operational improvements. From a market perspective, the shift toward
 
a low-emission economy could influence demand for low-emission
vessels, accelerating the decline of offshore oil and gas, and promoting a transition to renewable energy.
 
Changes in access to capital and insurance, along with the emergence of new business models, further shape market dynamics. Finally,
concerning reputation, late adoption of new technologies, sector stigmatization, and increasing pressure from talent
 
seeking careers away
from the fossil fuels industry pose reputational risks, making proactive adaptation essential for long-term industry positioning.
Building on the identified transition events, SEA1’s assets and business activities could be exposed to varying degrees of transition risks and
opportunities. These factors, driven by potential regulatory changes, technological advancements, market dynamics, and reputational
pressures, may reshape SEA1’s operational and financial landscape.
Policy and Legal Risks and Opportunities:
Stricter climate regulations, including emissions reporting obligations, carbon pricing mechanisms, and mandates on vessel efficiency, could
pose financial and operational challenges for SEA1. Compliance with evolving policies such as the EU ETS, FuelEU Maritime, and other
emissions-related regulations may increase operational costs, require fleet upgrades, and demand more extensive
 
sustainability reporting. If
SEA1 does not align with these regulatory requirements in a timely manner, it could face higher financial burdens, potential penalties, and
reduced access to certain markets.
However, policy changes may also create
 
opportunities. The maritime sector could benefit from government incentives for green technology
adoption and access to sustainability-linked financing. SEA1 might capitalize on these by securing favourable funding conditions for fleet
renewal, investing in alternative fuel infrastructure, and positioning itself as a frontrunner in regulatory compliance. Early alignment with
policy shifts could enhance SEA1’s competitive advantage and improve
 
its long-term resilience.
Technology Risks and Opportunities:
Uncertainty surrounding dominant alternative fuels (e.g., hydrogen, ammonia, and biofuels) complicates long-term investment decisions. High
initial costs, rising prices of key components, and limited supplier and customer commitment may slow market adoption. Additionally,
 
the
immaturity of surrounding infrastructure and fragmented fuel availability could lead to logistical challenges, price volatility,
 
and operational
constraints. While early adoption carries risks such as higher costs, failing to adapt in time could still lead to fleet obsolescence and reduced
competitiveness, emphasizing the importance of strategic partnerships and ongoing technological assessments.
Conversely, investing in
 
energy-efficient vessels, optimized propulsion systems, and increased automation
 
could lower fuel consumption,
reduce operational costs, and improve fleet longevity. Additionally,
 
as the maritime industry increasingly adopts advanced technologies, SEA1
could strengthen its appeal as an employer by attracting talent motivated by innovation and cutting
 
-edge offshore solutions. By actively
participating in innovation projects and pilot programs, SEA1 could strengthen its position in the evolving maritime industry.
Market Risks and Opportunities:
Shifting market preferences toward low-emission vessels
 
and a possible decline in offshore oil and gas could present substantial risks for SEA1.
With a significant portion of its revenue currently tied to oil and gas clients, a rapid energy transition might lead to stranded assets,
 
lower fleet
utilization, and increased financial uncertainty. Changes in access to capital and insurance conditions could pose additional financial
constraints, especially as investors and insurers tighten requirements
 
related to sustainability metrics.
Conversely, the transition to a low-emission
 
economy is expected to generate significant new market
 
opportunities. Offshore wind capacity is
projected to grow substantially,
 
reaching first 380 GW in 2030 and then 2,000 GW by 2050. This expansion will drive higher demand for
specialized offshore vessels, including installation and support services for offshore wind, as well as subsea operations and carbon capture and
storage (CCS) infrastructure.
 
SEA1 can leverage its existing offshore expertise and strategically
 
enhance fleet flexibility to diversify its client base and capitalize on emerging
business opportunities in these rapidly growing renewable energy segments. Ensuring fleet adaptability and proactively entering growth
markets will be crucial for mitigating financial risks and securing new revenue streams.
 
 
Board of Directors’ Report
31
Sea1 Offshore Inc. Annual Report 2024
Reputation Risks and Opportunities:
A delayed response to industry-wide decarbonization might lead to reputational damage, making it harder for SEA1 to
 
attract investors,
partners, and skilled talent. As sustainability becomes a key factor in business decisions, companies with outdated fleets and unclear transition
strategies could face stakeholder pressure
 
and reduced commercial opportunities. Additionally, sector-wide stigmatization of fossil
 
fuel-
dependent shipping might impact SEA1’s long-term brand perception.
On the other hand, embracing sustainability-focused initiatives could enhance SEA1’s reputation
 
and employer attractiveness. Younger
professionals are increasingly drawn to companies that prioritize environmental
 
responsibility and technological innovation. By integrating
green solutions, engaging in industry-wide decarbonization efforts, and clearly communicating its transition strategy,
 
SEA1 might strengthen
its position as a forward-thinking, competitive, and reputable player in the maritime sector.
Conclusion:
The estimated financial effects of both risks and opportunities increase over time in both scenarios, reflecting the gradual impact of climate
policy implementation, technological advancements, and physical climate changes. In a low-emissions scenario, it is estimated
 
that risks
slightly outweigh opportunities in the medium term, as evolving regulations, technological progress, and shifting market dynamics create
transitional uncertainties.
 
Market-related risks and opportunities in this scenario are expected to have the most significant financial impact on SEA1, underscoring the
need for proactive planning and strategic adaptation to a changing market landscape.
 
In a high-emissions scenario, the identified risks are not considered significantly disruptive, as SEA1 is well-positioned to manage them
effectively. Our experience in operating
 
under extreme weather conditions and in various parts of the world is expected to mitigate some of
the challenges posed by worsening weather patterns and rising temperatures.
ESRS E2 IRO-1 – Pollution Impact, Risks and Opportunities assessment
The same principles in assessing impacts, risks and opportunities for E1 Climate Change apply for E2 Pollution.
 
We have not conducted
consultations with affected communities or others.
ESRS E3 IRO-1 – Water and Marine Resources Impact, Risks and Opportunities assessment
We conduct regular screening of our site locations and supply chain activities to identify potential impacts and dependencies on water and
marine resources., There are potential negative impacts related to water
 
use and ballast water discharges, however these impacts are not
considered material. SEA1
 
has not yet conducted consultations with communities affected by our water-related activities. However,
 
we
recognize the importance of community input and plan to incorporate such input in future assessments where relevant.
ESRS E4 IRO-1 – Biodiversity Impact, Risks and Opportunities assessment
Through our DMA process, we examined direct impact drivers across SEA1's value chain. Our assessment considered effects
 
on both species’
populations and ecosystem conditions. No sites were located near biodiversity-sensitive areas, and it has not been concluded that it is
necessary to implement biodiversity mitigating measures as described by ESRS2 IRO-1 19 (b). We evaluated
 
both transition risks, such as
potential regulatory changes and market shifts related to biodiversity protection,
 
and physical risks from ecosystem degradation that
 
could
affect our supply chain. We evaluate dependencies on ecosystem services and assess transition and physical
 
risks related to biodiversity.
 
There are potential negative impacts related to noise generation and seabed disturbance from vessel operations,
 
however these impacts are
not considered material. SEA1
 
has yet to conduct community engagement or consultations with stakeholders
 
on biodiversity-related matters.
We aim to address this to better understand impacts on shared biological resources.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sea1 Offshore Inc. Annual Report 2024
32
ESRS E5 IRO-1 – Resource Use and Circular Economy Impact, Risks and Opportunities assessment
We screen our operations and supply chain using and assessment process including supplier documentation review and internal data analysis
to identify impacts, risks, and opportunities related to resource use and circular economy.
 
Focusing on resource inflows, outflows, and waste.
This process integrates with our assessments under ESRS E1-E4.
 
There are potential negative impacts related to production of new spare parts, waste
 
management onboard, scrapping and recycling of
vessels, however these impacts are not considered material. SEA1 has yet to conduct community engagement or consultations with
stakeholders on resource use and circular economy matters.
 
We plan to engage with communities to understand their perspectives.
ESRS G1 IRO-1 – Business Conduct Impact, Risks and Opportunities assessment
Criteria used in the process for identifying material impacts, risks and opportunities in relation to business conduct matters, include location,
activities, value-chain, and structure of the transaction.
IRO-2 Disclosure requirements in ESRS covered
 
by the sustainability statement
ESRS 2.56 + ESRS 2.AR 19 – Disclosure Requirements compiled within the sustainability statement
The overview showing the material Disclosure Requirements is given above in the ESRS Index.
In short, ESRS 2, E1, E2, S1, S2 and G1 are all material standards for Sea1 Offshore and are listed a required
 
with the proper topics ESRS 2, E, S
and G as their own respective chapters with sub-topics and sub-sub-topics acting as sub-chapters. Page numbers show where in the report the
relevant information can be found.
The following table, as presented in Appendix B of the ESRS standard, gives an overview of the ESRS main Disclosure Requirements
 
and
Datapoints and if these are material to Sea1 Offshore, in addition to whether datapoints derive from other EU legislation. If material, page
references to the Sustainability Statement are
 
given.
Disclosures
Requirement and
related Datapoint
SFDR
reference
Pillar 3 reference
Benchmark
 
Regulation
 
reference
EU
 
Climate Law
reference
Material to
SEA1?
Page (or
paragraph
reference)
ESRS 2 GOV-1, Boards Gender
Diversity paragraph 21 (d)
Indicator number
13 of Table #1 of
 
Annex 1
 
Commission
 
Delegated
 
Regulation
 
(EU)
 
2020/181612,
 
Annex II
 
Material
Page 15
ESRS 2 GOV-1
 
Percentage of board members
who are
independent
 
paragraph 21 (e)
 
Delegated
 
Regulation
 
(EU)
 
2020/1816,
 
Annex II
Material
Page 15
ESRS 2 GOV-4
 
Statement on due
 
diligence
 
paragraph 30
 
Indicator number
10
 
Table #3 of Annex 1
Material
Page 17
ESRS 2 SBM-1
 
Involvement in
 
activities
 
related to fossil fuel 
activities
 
paragraph 40
 
(d)
 
i 
Indicators number
4 Table #1 of Annex
1
Article
 
449a
 
Regulation 
(EU) No 575/2013;
 
Commission
 
Implementing
 
Regulation
 
(EU)
 
2022/245313
Table 1: Qualitative
information
 
on
 
Environmental risk and Table
2: Qualitative
 
information
 
on 
Social risk
 
Delegated
 
Regulation
 
(EU)
 
2020/1816,
 
Annex II
Material
Page 18
ESRS 2 SBM-1
 
Involvement in activities
 
related 
to chemical
 
production
 
paragraph 40
 
(d) ii
Indicator number 9
Table #2 of Annex 1
Delegated Regulation
 
(EU)
2020/1816,
 
Annex II
Material
Page 18
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Board of Directors’ Report
33
Sea1 Offshore Inc. Annual Report 2024
ESRS 2 SBM-1
 
Involvement in activities
 
related 
to controversial
 
weapons paragraph 40 (d) iii
Indicator number
14 Table #1 of
Annex 1
Delegated Regulation
 
(EU)
2020/181814,
 
Article
 
12(1) Delegated
 
Regulation
 
(EU)
2020/1816, Annex II
 
Material
Page 18
ESRS 2 SBM-1
 
Involvement in activities
 
related 
to cultivation 
and production
 
of
 
tobacco paragraph 40 (d) iv
 
Delegated Regulation
 
(EU)
2020/1818,
 
Article
 
12(1) Delegated
 
Regulation
 
(EU)
 
2020/1816, Annex II
 
Material
Page 18
ESRS E1-1
 
Transition
 
plan
 
to reach climate
neutrality by 2050
 
paragraph 14
Regulation
 
(EU)
2021/1119,
 
Article
 
2(1)
Material,
but phase-
in applied
Page 42
ESRS E1-1
 
Undertakings excluded
 
from Paris-aligned
 
Benchmarks
paragraph 16 (g)
Article
 
449a
 
Regulation
 
(EU)
 
No 575/2013;
Commission
 
Implementing
 
Regulation 
(EU) 2022/2453
 
Template 1:
 
Banking Book Climate Change
transition
 
risk:
 
Credit quality of exposures by
sector, emissions and residual
maturity
Delegated Regulation
 
(EU)
 
2020/1818 Article12.1
 
(d)
to (g), and Article
 
12.2
Material
Page 42
ESRS E1-4
 
GHG emission
 
reduction
 
targets
 
paragraph 34
Indicator number 4
Table #2 of Annex 1
Article
 
449a
 
Regulation 
(EU) No 575/2013;
 
Commission
 
Implementing
 
Regulation
 
(EU)
 
2022/2453
 
Template 3:
 
Banking book – Climate
change transition
 
risk:
 
alignment metrics
Delegated
 
Regulation
 
(EU)
 
2020/1818,
 
Article
 
6
Material
Page 46
ESRS E1-5
 
Energy consumption
 
from
 
fossil sources disaggregated
 
by sources (only high
 
climate impact sectors)
paragraph 38
Indicator number 5
Table #1 and
 
Indicator n. 5 Table
#2 of Annex 1
Material
Page 47
ESRS E1-5 Energy
 
consumption
 
and
 
mix paragraph 37
Indicator number 5
Table #1 of Annex 1
Material
Page 47
ESRS E1-5
 
Energy intensity associated with
activities
 
in high 
climate impact sectors
paragraphs 40 to 43
Indicator number 6
Table #1 of Annex 1
Material
Page 48
ESRS E1-6
 
Gross Scope 1, 2, 3
 
and Total GHG emissions
 
paragraph 44
Indicators number
1 and 2 Table #1 of
 
Annex 1
Article
 
449a; Regulation 
(EU) No 575/2013;
 
Commission Implementing
 
Regulation
 
(EU)
 
2022/2453
 
Template 1: Banking book –
 
Climate change transition
 
risk:
Credit quality of
 
exposures by sector, emissions
and residual maturity
 
Delegated
 
Regulation
 
(EU)
 
2020/1818,
 
Article
 
5(1), 6
 
and 8(1)
Material
Page 48
ESRS E1-6
 
Gross GHG emissions
 
intensity paragraphs 53 to 55
Indicators number
3
 
Table
 
#1 of Annex
1
 
Article
 
449a Regulation 
(EU) No 575/2013;
 
Commission
 
Implementing
 
Regulation
 
(EU)
 
2022/2453
 
Template 3:
 
Banking book –
 
Climate change transition
 
risk:
 
alignment metrics
 
Delegated
 
Regulation
 
(EU)
 
2020/1818,
 
Article
 
8(1)
Material
Page 49
ESRS E1-7
 
GHG removals and
 
carbon credits
 
Regulation
 
(EU)
 
2021/1119,
 
Article
 
2(1)
 
Not
material
N/A
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sea1 Offshore Inc. Annual Report 2024
34
paragraph 56
 
ESRS E1-9
 
Exposure of the
 
benchmark portfolio
 
to climate-related
 
physical risks paragraph 66
Delegated Regulation
 
(EU)
2020/1818,
 
Annex II Delegated
 
Regulation
 
(EU)
 
2020/1816,
 
Annex II
Not
material
N/A
ESRS E1-9
 
Disaggregation
 
of
 
monetary amounts by acute
 
and chronic physical risk
 
paragraph 66 (a)
 
ESRS E1-9
 
Location
 
of
 
significant
 
assets at
 
material physical risk
paragraph 66 (c).
 
Article
 
449a Regulation 
(EU) No 575/2013;
 
Commission
 
Implementing
Regulation
 
(EU) 2022/2453
 
paragraphs 46 and 47;
Template 5:
 
Banking book - Climate change
physical risk:
 
Exposures subject to physical
risk
Not
material
N/A
ESRS E1-9
 
Breakdown of the carrying
value of its real estate assets by
energy- efficiency
 
classes 
paragraph 67 (c).
Article
 
449a Regulation 
(EU) No 575/2013;
Commission
 
Implementing
 
Regulation
 
(EU)
 
2022/2453
 
paragraph 34; Template
 
2: Banking book
 
-Climate change
 
transition
 
risk:
 
Loans collateralised
 
by immovable property -
Energy efficiency
 
of the 
collateral
Not
material
N/A
ESRS E1-9
 
Degree of exposure of the
portfolio
 
to climate-related
opportunities
 
paragraph 69
 
Delegated
 
Regulation
 
(EU)
 
2020/1818,
 
Annex II
 
Not
material
N/A
ESRS E2-4
 
Amount of each
 
pollutant listed in
 
Annex II of the EPRTR
 
Regulation
 
(European
 
Pollutant
Release and Transfer Register)
emitted
 
to
 
air, water and soil, paragraph 28
 
Indicator number 8
 
Table #1 of Annex 1
Indicator number 2
Table #2 of Annex
 
1 Indicator number
 
1 Table #2 of Annex
1 Indicator number
3 Table #2 of Annex
1
 
Material
Page 56
ESRS E3-1 Water and
 
marine resources
 
paragraph 9
Indicator number 7
Table #2 of Annex 1
Not
material
N/A
ESRS E3-1
 
Dedicated policy
 
paragraph 13
Indicator number 8
Table 2 of Annex 1
Not
material
N/A
ESRS E3-1
 
Sustainable oceans and seas
 
paragraph 14
Indicator number
12
 
Table #2 of
Annex 1
 
Not
material
N/A
ESRS E3-4
 
Total water recycled
 
and reused paragraph 28 (c)
Indicator number
 
6.2 Table #2 of
Annex 1
Not
material
N/A
ESRS E3-4 Total
 
water consumption
 
in
 
m3
 
per
net revenue on own
 
operations
 
paragraph 29
Indicator number
 
6.1 Table #2 of
Annex 1
Not
material
N/A
ESRS 2- IRO 1 - E4
 
paragraph 16 (a) i
 
Indicator number 7
Table #1 of Annex 1
Not
material
N/A
ESRS 2- IRO 1 - E4
 
paragraph 16 (b)
Indicator number
10 Table #2 of
Annex 1
 
Not
material
N/A
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Board of Directors’ Report
35
Sea1 Offshore Inc. Annual Report 2024
ESRS 2- IRO 1 - E4
 
paragraph 16 (c)
Indicator number
14 Table #2 of
Annex 1
Not
material
N/A
ESRS E4-2
 
Sustainable land /
 
agriculture practices
 
or policies paragraph 24 (b)
 
Indicator number
11 Table #2 of
Annex 1
Not
material
N/A
ESRS E4-2
 
Sustainable oceans /
 
seas practices
 
or
 
policies paragraph 24 (c)
Indicator number
12 Table #2 of
Annex 1
 
Not
material
N/A
ESRS E4-2
 
Policies to address
deforestation
 
paragraph 24
 
(d)
Indicator number
15 Table #2 of
Annex 1
Not
material
N/A
ESRS E5-5
 
Non-recycled waste
 
paragraph 37 (d)
 
Indicator number
13 Table #2 of
Annex 1
 
Not
material
N/A
ESRS E5-5
 
Hazardous waste and
radioactive
 
waste
 
paragraph 39
Indicator number 9
Table #1 of Annex 1
Not
material
N/A
ESRS 2- SBM3 - S1
 
Risk of incidents of forced
labour paragraph 14 (f)
 
Indicator number
13 Table #3 of
Annex I
 
Not
material
N/A
ESRS 2- SBM3 - S1
 
Risk of incidents of
 
child labour paragraph 14 (g)
Indicator number
12 Table #3 of
Annex I
Not
material
N/A
ESRS S1-1
 
Human rights policy
commitments paragraph 20
Indicator number 9
Table #3 and
 
Indicator number
11 Table #1 of
Annex I
Material
Page 63
ESRS S1-1
 
Due diligence policies on issues
addressed by the
 
fundamental International
Labor Organisation
 
Conventions
 
1
 
to
 
8, paragraph
21
Delegated
 
Regulation
 
(EU)
 
2020/1816,
 
Annex II
 
Material
Page 63
ESRS S1-1
 
processes and measures for
 
preventing
 
trafficking
 
in
 
human 
beings paragraph 22
Indicator number
11 Table #3 of
Annex I
Not
material
N/A
ESRS S1-1
 
workplace accident
 
prevention
 
policy or
 
management system paragraph
23
 
Indicator number 1
Table #3 of Annex I
Material
Page 63
ESRS S1-3
 
grievance/complaints
 
handling mechanisms
 
paragraph 32 (c)
 
Indicator number 5
Table #3 of Annex I
Material
Page 64
ESRS S1-14
 
Number of fatalities
 
and number and rate
 
of work-related
 
accidents paragraph
 
88 (b) and (c)
Indicator number 2
Table #3 of Annex I
Delegated
 
Regulation
 
(EU)
 
2020/1816,
 
Annex II
 
Material,
but phase-
in applied
N/A
ESRS S1-14
 
Number of days lost to injuries,
accidents,
 
fatalities
 
or
 
illness
 
paragraph 88 (e)
Indicator number 3
Table #3 of Annex I
Material,
but phase-
in applied
N/A
ESRS S1-16
 
Unadjusted gender pay gap
 
paragraph 97 (a)
Indicator number
12 Table #1 of
Annex I
Delegated Regulation
 
(EU)
2020/1816, Annex II
Material,
but phase-
in applied
 
N/A
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sea1 Offshore Inc. Annual Report 2024
36
ESRS S1-16
 
Excessive CEO pay ratio
 
paragraph 97 (b)
 
Indicator number 8
Table #3 of Annex I
Material,
but phase-
in applied
N/A
ESRS S1-17
 
Incidents of discrimination
 
paragraph 103 (a)
Indicator number 7
Table #3 of Annex I
Material
Page 75
ESRS S1-17
 
Nonrespect of UNGPs on
Business and Human Rights and
OECD paragraph 104 (a)
Indicator number
10 Table #1 and
 
Indicator n. 14
 
Table #3 of Annex I
Delegated Regulation
 
(EU)
2020/1816, Annex II
 
Delegated Regulation
 
(EU)
2020/1818 Art 12
 
(1)
Material
Page 75
ESRS 2- SBM3 – S2
 
Significant
 
risk
 
of child
 
labour
 
or
forced
 
labour in the value
 
chain paragraph 11 (b)
 
Indicators number
12 and n. 13 Table
#3 of Annex I
Not
material
N/A
ESRS S2-1
 
Human rights policy
commitments paragraph 17
Indicator number 9
Table #3 and
 
Indicator n. 11
Table #1 of Annex 1
Not
material
N/A
ESRS S2-1 Policies related to
value chain workers paragraph
18
 
Indicator number
11 and n. 4 Table
#3 of Annex 1
Not
material
N/A
ESRS S2-1 Nonrespect of UNGPs
on Business and Human Rights
principles and OECD guidelines
paragraph 19
Indicator number
 
10 Table #1 of
Annex 1
 
Delegated Regulation
 
(EU)
2020/1816,
 
Annex II Delegated
 
Regulation
 
(EU)
 
2020/1818, Art 12 (1)
Not
material
N/A
ESRS S2-1
 
Due diligence policies on issues
addressed by the
 
fundamental International
Labor Organisation
 
Conventions
 
1
 
to
 
8, paragraph
19
 
Delegated Regulation
 
(EU)
2020/1816, Annex II
Material
ESRS 2
Page 14
ESRS S2-4
 
Human rights issues and
 
incidents connected to its
 
upstream and downstream
value chain paragraph 36
 
Indicator number
14 Table #3 of
Annex 1
Material
ESRS 2
Page 14
ESRS S3-1
 
Human rights policy
 
commitments paragraph 16
 
Indicator number 9
Table #3 of Annex 1
and Indicator
 
number 11 Table #1
of Annex 1
 
Not
material
N/A
ESRS S3-1 non-
respect of UNGPs on
 
Business and Human
 
Rights, ILO principles
 
or and OECD guidelines
paragraph 17
Indicator number
10 Table #1 Annex
1
Delegated Regulation
 
(EU)
2020/1816,
 
Annex II Delegated
 
Regulation
 
(EU)
 
2020/1818, Art 12 (1)
Not
material
N/A
ESRS S3-4
 
Human rights
 
issues and incidents paragraph
36
Indicator number
14 Table #3 of
Annex 1
Not
material
N/A
ESRS S4-1 Policies
 
related to consumers and end-
users paragraph 16
 
Indicator number 9
Table #3 and
 
Indicator number
11 Table #1 of
Annex 1
Not
material
N/A
ESRS S4-1
 
Non-respect of UNGPs
 
on Business and
 
Human Rights and
 
OECD guidelines
 
paragraph 17
Indicator number
10 Table #1 of
Annex 1
Delegated Regulation
 
(EU)
2020/1816,
 
Annex II Delegated
 
Regulation
 
(EU)
 
2020/1818, Art 12 (1)
 
Not
material
N/A
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
doc1p38i0
Board of Directors’ Report
37
Sea1 Offshore Inc. Annual Report 2024
ESRS S4-4
 
Human rights issues and
 
incidents paragraph 35
Indicator number
14 Table #3 of
Annex 1
 
 
Not
material
N/A
ESRS G1-1
 
United Nations
 
Convention 
against Corruption
 
paragraph
10 (b)
Indicator number
15 Table #3 of
Annex 1
Material
Page 77
ESRS G1-1
 
Protection
 
of
 
whistle-
 
blowers
paragraph 10 (d)
Indicator number 6
Table #3 of Annex 1
Material
Page 78
ESRS G1-4
 
Fines for violation
 
of anti
 
-corruption
 
and anti
 
-bribery
 
laws paragraph 24 (a)
 
Indicator number
17
 
Table #3 of Annex 1
Delegated Regulation
 
(EU)
2020/1816,
 
Annex II)
Material
Page 81
ESRS G1-4
 
Standards of anti
 
-
 
corruption
 
and anti
 
-
 
bribery 
paragraph 24 (b)
Indicator number
16 Table #3 of
Annex 1
Material
Page 81
Metrics and Targets
 
in relation to material sustainability matters
ESRS 2.73 – 2.74 Disclosure of metrics and targets
Sea1 Offshore makes use of metrics and targets as required by the ISO 9001 & 14001 standards
 
as baseline for its internal set of Key
Performance Indicators (KPI).
 
The following KPI’s are related to ESRS
 
standards and linked towards Impact, Risk and Opportunities (IRO) as given by the Double Materiality
Assessment (DMA), ref table of material IRO as listed in sub-chapter SBM-3.
 
SEA1 KPI
Goals 2024 -2025
Linked to ESRS
Topic
Linked to IRO ID
Chapter Reference
 
Carbon Intensity Indicator (CII)
2.2% reduction
 
p.a.
E1
1, 2, 4
ESRS E1-4
Oil Spill to Sea
0
E2
5, 6
ESRS E2-3
Consumption
 
in
 
Port
2 % reduction
 
p.a.
E1, E2
1, 4, 8, 9, 10
ESRS E2-3
LTI Rate
0
S1
15
ESRS S1-5
TRI Rate
< 1.95
S1
15
ESRS S1-5
HSE Reporting
> 550
S1
12, 15
ESRS S1-5
Sickness Absence
4%
S1
12, 15
ESRS S1-5
Officer
 
Retention
 
Rate 
>90%
S1
11, 13
ESRS S1-5
Female Seafarers
4% by 2024
S1
12, 13
ESRS S1-5
*Please note these KPI’s are applicable for vessel fleet
 
under Sea1 Offshore
 
AS, not
 
including 4
 
vessels operated by Brazil-office. 
The description of each ESRS KPI-metric is given in more detail under each ESRS topic.
 
Sea1 Offshore Inc. Annual Report 2024
38
EU TAXONOMY
The EU Taxonomy
 
is a classification system that defines which economic activities are considered environmentally sustainable to guide
investments and financial flows. For an economic activity to be considered sustainable (
ALIGNED
) under the Taxonomy,
 
it must contribute to
at least one of the six objectives and do no significant harm to the other five, while complying with minimum social safeguards. The six
environmental objectives are as follows:
●
Climate Change Mitigation
●
Climate Change Adaptation
●
Sustainable Use and Protection of Water and Marine Resources
●
Transition to a Circular Economy
●
Pollution Prevention and Control
●
Protection and Restoration of Biodiversity and Ecosystems
After completing a screening analysis of the Company operations and activities, the only relevant environmental objective found is the Climate
Change Mitigation. The other objectives are screened to be not relevant.
For Sea1 Offshore following activities are found relevant (
ELIGIBLE
) and due for a closer alignment analysis:
●
Activity CCM 6.10: Sea and coastal freight water transport, vessels for port operations and auxiliary activities.
 
Operation of offshore
vessels are assessed to be eligible under the Activity 6.10 in the Taxonomy and covering most
 
of the business activities in Sea1
Offshore, for FY24 estimated to be 310.0MUSD and thus 91% of net revenue of 340.8MUSD.
●
Activity CCM 4.3: Electricity generation from Wind Power.
 
The activity is described as Construction or operation of electricity
generation facilities that produce electricity from wind power.
 
We interpret this activity to be eligible for Sea1 Offshore with Walk-
to-Work services,
 
seabed ploughing for infield power cables and other contracts for offshore wind farm clients. This activity
represents approx. 27.4MUSD and 8% of the net revenue for SEA1.
More details are given below where the KPI-templates for Revenue, CAPEX
 
and OPEX are given, in addition to the assessment done.
Assessment of Alignment
Activities that contribute to the reduction of greenhouse gas emissions to help limit global warming (e.g. renewable energy,
 
energy efficiency,
carbon capture).
 
Following two Taxonomy
 
-activities are assessed against the technical screening criteria:
●
CCM 6.10 Sea and coastal freight water transport, vessels for port operations and auxiliary activities. Based on not meeting the
Substantial Contribution Criteria, this activity is found not aligned for Climate Change Mitigation. The Minimum Safeguards Criteria
is met, ref below.
●
CCM 4.3 Electricity generation from Wind Power.
 
Based on not meeting the Do No Significant Harm (DNSH)-criteria, this activity is
found not aligned for Climate Change Mitigation. The Minimum Safeguards Criteria is met, ref
 
below.
Minimum Safeguards
The EU Taxonomy
 
defines a set of Minimum Safeguards as set from defined UN, EU and other international human rights and code of ethics
guidelines against which businesses must assess their procedures. Four themes are covered under the Minimum Safeguards criteria: human
rights, corruption, taxation and fair competition. In order to meet the requirements, the Company has identified relevant policies
 
and
procedures towards the following guidelines and standards:
 
 
Board of Directors’ Report
39
Sea1 Offshore Inc. Annual Report 2024
●
The OECD Guidelines for Multinational Enterprises
●
The UN Guiding Principles on Business and Human Rights
 
●
The fundamental conventions of the International Labour Organization (ILO)
 
Because none of our activities comply with the technical screening criteria, a comprehensive assessment of compliance with the minimum
safeguards requirement is not yet conducted. However,
 
SEA1 policies and procedures consider human rights and proper business conduct as
important elements.
 
Taxonomy
 
- KPI Template
 
for Revenue, CapEx and OpEx:
The KPI-templates for Revenue, CapEx and OpEx are given in the spreadsheets below.
 
The disclosures on Revenue, OpEx and CapEx for
taxonomy eligible activities are based on our interpretation of the Disclosures Delegated Act annex
 
I (Commission Delegated Regulation (EU)
2021/4987) and additional guidance documents from the European Commission.
Sea1’s activities are related to the boundaries of the reporting entity in accordance with IFRS
 
and as described in the Group financial
statements. Information about our consolidation principles can be found under the consolidation and accounting principles section of the
annual report. In our disclosure of the numerator for revenue, OpEx, and CapEx we use an activity-based split to avoid double counting of
financial numbers.
Revenue:
Eligible revenue comes from the activities from operation of offshore vessels and Walk-to-Work
 
services related to electricity generation from
Wind Power.
 
Revenue from operation of vessels accounts for 91%, while Walk-to-Work
 
services amounts to 8 % of our eligible revenues.
Please note the revenues from management fee for the 17 externally owned vessels, are screened to be not eligible under the Taxonomy.
 
This
revenue is quantified to 3.4MUSD which is 1% of total net revenue. The revenue denominator of 340.8MUSD is derived from financial note 4
Segment Reporting.
OpEx:
OpEx according to the EU Taxonomy
 
represents direct non-capitalized costs related to research
 
and development, building renovation
measures, short-term leases and maintenance and repair,
 
and any other direct expenditures relating to the day-to-day servicing of assets of
property, plant and equipment that are necessary to ensure the continued and effective
 
operations of such assets.
In the context of Sea1’s operations we interpret
 
this to be:
-
 
Maintenance and repair OpEx for assets or property, plant,
 
and equipment.
The estimated distribution among activities is considered to correspond to the distribution of revenues. 91% is related to activity 6.10 and 9 %
to activity 4.3.
CapEx:
The capital expenditures (CapEx) KPI entails additions to:
-
 
Vessels under construction
 
-
 
Vessels and equipment
-
 
Dry docking
Our eligible CapEx is related to assets associated with taxonomy-eligible activities. The CapEx denominator of 52.86MUSD is derived from
financial Note 5 Vessel Equipment and Capitalized project cost. The estimated
 
distribution among activities is considered to correspond to the
distribution of revenues. 91% is related to activity 6.10 and 9 % to activity 4.3.
SEA1
 
did not have a taxonomy report in 2023, hence no comparable numbers for 2023 are
 
filled in.
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Sea1 Offshore Inc. Annual Report 2024
40
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
doc1p42i0
Board of Directors’ Report
41
Sea1 Offshore Inc. Annual Report 2024
Note on exposure to nuclear and fossil gas-related activities:
 
Row
Nuclear energy related activities
Reply
1
The undertaking carries out, funds or has exposures
 
to research, development, demonstration
 
and deployment of innovative
electricity generation facilities that produce
 
energy from nuclear processes with minimal waste
 
from the fuel cycle.
No
2
The undertaking carries out, funds, or has exposure
 
to the construction and safe operation
 
of new nuclear installations to produce
electricity or process heat, including for
 
the purposes of district heating or industrial processes
 
such as hydrogen production,
 
as
well as their safety upgrades,
 
using the best available technologies.
No
3
The undertaking carries out, funds, or has exposure
 
to the safe operation of existing
 
nuclear installations that produce
 
electricity
or process heat, including for the purposes
 
of district heating or industrial processes
 
such as hydrogen production from
 
nuclear
energy, as well as their safety
 
upgrades.
No
Fossil gas-related activities
4
The undertaking carries out, funds, or has exposure
 
to the construction or operation of
 
electricity generation facilities that
produce electricity using fossil gaseous
 
fuels.
No
5
The undertaking carries out, funds, or has exposure
 
to the construction, refurbishment,
 
and operation of combined heat/cool
 
and
power generation facilities using fossil
 
gaseous fuels.
No
6
The undertaking carries out, funds, or has exposure
 
to the construction, refurbishment and
 
operation of heat generation
 
facilities
that produce heat/cool using fossil
 
gaseous fuels.
No
 
 
 
Sea1 Offshore Inc. Annual Report 2024
42
ESRS E1: Climate Change
E1-1 Transition plan for
 
climate change mitigation
ESRS E1.14 – E1.17 Transition plan
There is currently no Transition Plan made
 
to meet the company climate targets. The
 
Transition Plan will be in place
 
on medium term basis. Sea1
Offshore is not excluded from EU Paris-aligned benchmarks.
GHG emission reduction targets are given under DR E1-4 and the climate change mitigation actions under DR E1-3.
The relevant economic activities as covered by the delegated Taxonomy regulation, and the associated CAPEX and OPEX for FY24, are described
above.
ESRS 2 SBM-3
 
ESRS E1.19 Climate change strategy and business model
Resilience to climate change is key to long-term sustainability and competitiveness.
 
Our
 
resilience
 
analysis evaluates how
 
we
 
anticipate,
 
adapt 
to, and manage climate-related risks while seizing new opportunities.
 
This process strengthens our
 
strategic
 
planning and
 
investment
decisions, ensuring we remain agile amid evolving regulatory, technological, and market conditions.
 
The resilience analysis builds upon the climate risk assessment detailed in IRO-1 of the ESRS 2 chapter. This assessment was conducted
immediately after
 
the climate risk
 
analysis, and uses
 
the same foundational
 
approach, ensuring
 
alignment in scope,
 
methodology,
 
and 
assumptions.
Scope and Methodology of the Resilience Analysis:
The resilience analysis covers all material physical and transition
 
risks
 
and opportunities
 
identified
 
in
 
the climate
 
risk
 
assessment and no parts 
of SEA1’s operations,
 
upstream or downstream value
 
chain have been excluded. The analysis utilized
 
the same
 
two
 
climate
 
scenarios
 
defined in 
the climate risk assessment and described under ESRS 2 IRO-1.
 
The low-emissions scenario, based on the NZE by 2050 pathway, assumes a rapid decline in fossil fuel reliance, a strong regulatory push toward
decarbonization,
 
and
 
widespread
 
adoption
 
of
 
clean
 
technologies. In
 
contrast, the
 
high-emissions scenario, following
 
the SSP5-8.5
 
pathway, 
reflects
 
continued
 
dependence on
 
fossil fuels
 
with minimal policy
 
intervention,
 
leading
 
to
 
higher
 
energy
 
demand
 
and
 
limited
 
technological 
advancements. These scenarios provide a broad framework for assessing SEA1’s exposure to varying climate and policy landscapes. The time
horizons applied are also consistent with those in the climate risk assessment, with short-term defined
 
as 2025,
 
medium-term
 
as 2030, and
long-term as 2040.
 
As part of assessing SEA1’s resilience to climate change, a workshop was conducted with the leadership team to estimate
 
the
 
anticipated 
financial
 
effects
 
of
 
material
 
physical and
 
transition
 
risks
 
across
 
short-,
 
medium-,
 
and
 
long-term
 
timeframes. Additionally,
 
to
 
evaluate SEA1’s 
ability to mitigate
 
risks
 
and capitalize on opportunities,
 
mitigation
 
strategies
 
and
 
actions
 
were
 
identified
 
within
 
each
 
timeframe. 
The assessment considered both potential
 
changes to the business
 
model,
 
such as
 
operational
 
changes
 
in
 
key
 
input factors,
 
and
 
strategic 
adjustments, including changes in the company’s direction
 
or ambition.
 
This
 
structured
 
approach
 
provided
 
a
 
robust
 
basis
 
for
 
evaluating
 
SEA1’s 
ability to navigate both climate scenarios effectively. 
Results of the Resilience Analysis:
According to the resilience analysis, SEA1 employs a highly agile strategy, enabling it to swiftly
 
adapt
 
to
 
evolving
 
market
 
conditions,
 
regulatory 
shifts,
 
and
 
technological
 
advancements. This
 
flexibility
 
enhances our
 
resilience, including in response to
 
climate
 
change, by
 
allowing
 
us to 
refine
 
its
 
strategies to
 
mitigate
 
risks
 
and
 
capitalize
 
on
 
emerging
 
opportunities.
 
The
 
resilience assessment
 
confirms
 
SEA1’s
 
strong positioning in 
navigating
 
both
 
scenarios,
 
leveraging its
 
adaptability
 
to sustain
 
operational
 
stability
 
and
 
long-term
 
competitiveness. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Board of Directors’ Report
43
Sea1 Offshore Inc. Annual Report 2024
Under a low-emissions scenario, where stringent climate regulations
 
drive decarbonization
 
and accelerate
 
the
 
energy
 
transition,
 
SEA1
 
is well-
prepared to adapt to regulatory changes, new technologies, and shifting
 
market
 
demands.
 
Our
 
ability
 
to continually
 
assess
 
market
 
trends
 
and 
make strategic decisions based on evolving conditions
 
supports
 
its
 
fleet
 
modernization
 
and
 
ensures that
 
new
 
vessels
 
remain
 
technologically 
advanced, flexible,
 
and adaptable
 
to various industry requirements.
SEA1’s market position
 
is reinforced
 
by
 
its
 
ability
 
to continuously
 
evaluate evolving
 
client
 
needs and
 
align
 
its
 
expertise in
 
offshore
 
operations 
with emerging market opportunities
 
as client portfolios
 
evolve.
 
While
 
the
 
industry
 
is
 
expected to see
 
increasi
 
ng demand
 
for low-emission 
vessels and new business models, SEA1's agile decision-making process enables us to remain relevant and competitive. 
Furthermore, as the industry transitions
 
toward
 
greener
 
technology,
 
SEA1’s
 
flexibility
 
and
 
strategic
 
approach
 
to
 
adopting
 
new
 
technologies
 
at 
the right time
 
will
 
be key
 
to seizing
 
opportunities
 
while
 
minimizing
 
risks.
 
By
 
leveraging
 
partnerships and
 
staying
 
informed
 
on
 
technological 
advancements, SEA1 can avoid the uncertainties
 
of early adoption
 
—such
 
as
 
immature
 
ecosystems and
 
unproven
 
technologies—while
 
also 
ensuring it remains competitive
 
and
 
aligned
 
with
 
industry
 
developments. 
In the long term, SEA1 recognizes that securing top talent will be essential
 
for
 
maintaining
 
competitiveness
 
in a low-emissions
 
market. We 
acknowledge the importance of clearly communicating
 
its transition
 
strategy
 
to
 
attract
 
and
 
retain skilled
 
professionals,
 
ensuring
 
it
 
remains
 
an 
employer of choice in the evolving offshore
 
sector.
In a high-emissions scenario, where fossil fuel reliance remains dominant and climate policy interventions
 
are
 
minimal,
 
SEA1 benefits
 
from 
continued
 
demand
 
for
 
offshore
 
services, particularly
 
from
 
its
 
established
 
oil
 
and
 
gas
 
client
 
base.
 
In
 
addition, our
 
expertise in
 
operating
 
under 
extreme weather conditions,
 
supported
 
by a
 
fleet
 
of robust vessels
 
and experienced
 
crews,
 
positions
 
SEA1 well
 
to
 
effectively
 
manage
 
physical 
challenges such as severe storms and rougher sea conditions,
 
as
 
well
 
as potentially
 
accelerated vessel
 
wear. 
SEA1 is also well-placed to capitalize on emerging opportunities
 
that
 
will
 
emerge
 
in this
 
scenario. The
 
increasing frequency
 
of
 
severe
 
weather
events is expected to drive demand for offshore
 
vessels equipped
 
for
 
emergency
 
response,
 
infrastructure
 
maintenance,
 
and
 
resilient
 
offshore 
operations.
 
SEA1’s ability
 
to
 
operate
 
in
 
harsh conditions
 
provides
 
a
 
competitive
 
advantage
 
in
 
this
 
space. Similarly,
 
melting
 
Arctic ice could 
unlock new shipping routes and expand access to previously inaccessible regions, creating opportunities
 
for resource
 
extraction,
 
offshore 
energy projects, and specialized vessel services for Arctic
 
mining,
 
oil and gas exploration,
 
and
 
renewable
 
energy
 
infrastruct
 
ure. 
In conclusion, SEA1’s agility ensures adaptability in the short and medium term, while its strategic approach supports long-term
competitiveness
 
across varying
 
climate
 
scenarios.
 
By continuously
 
monitoring
 
climate
 
policy
 
developments,
 
investing in
 
techno
 
logical 
advancements, and refining
 
its
 
business
 
model,
 
SEA1
 
remains
 
well-positioned to
 
navigate
 
transition
 
risks
 
and
 
capitalize
 
on
 
emerging
 
market 
opportunities.
The resilience analysis reaffirms
 
SEA1’s ability to adapt,
 
innovate,
 
and
 
thrive
 
in
 
an evolving
 
climate landscape,
 
securing
 
its
 
market
 
position
 
and 
long-term sustainability.
ESRS E1.18 & E1.20 The process to identify and assess climate-related Impact, Risk and Opportunities (IRO)
Reference is made to the Double Materiality Analysis process as given in ESRS 2 IRO-1.
The following IROs as listed below were identified
 
as
 
material
 
for the
 
Company and E1
 
Climate
 
Change: 
Sub-Topic
IRO-description
Category
Value Chain
IRO ID
Climate Change
Mitigation 
SEA1's fleet
 
of vessels
 
contributes to climate change
 
through
CO2 emissions generated during maritime
 
operations
 
. 
Negative
 
impact
Own
Operations
1
SEA1 faces a financial
 
risk from
 
potential
 
taxation
 
specifically 
targeting
 
CO2 emissions produced by
 
its
 
fleet
 
of vessels 
during maritime
 
operations 
Financial Risk
SEA1 ships are involved in the oil and gas industry which has
negative
 
impacts
 
on climate and ocean
 
through
 
its
operations.
 
This
 
is
 
partially
 
mitigated
 
through
 
alternate
 
fuels 
and efficient
 
operations 
Negative
 
Impact
Own
Operations
2
SEA1's continued
 
operations
 
in the oil
 
& gas
 
/
 
offshore
 
sector 
will lead to further negative
 
impacts
 
on climate and
environment / wildlife which will affect
 
Sea1's PR standing
closer to 2050 without the necessary measure for a green
transition
Reputation
 
Risk
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sea1 Offshore Inc. Annual Report 2024
44
SEA1 vessels are involved in the renewable sector, supporting
offshore
 
windfarms
 
through the
 
deployment of
 
sea anchors
and trenching operations.
 
Still
 
there are release of
 
GHG 
emissions that negatively
 
impact the
 
climate during their
operations
Negative
 
Impact
Own
Operations
3
With more increased activity
 
in the renewables
 
sector
 
means
increased vessel activity
 
and higher negative
 
environmental 
impacts
Reputation
 
Risk
Vessels owned by external partners but managed by Sea1
Offshore,
 
contribute to climate change through CO2
emissions during maritime
 
operations 
Negative
 
Impact
Downstream
and
customers
4
None of the listed IROs for E1 Climate Change are directly connected to the Company’s strategy or business model, but they are essential
 
to
the running of the Company. Risks and opportunities
 
are certain
 
to
 
arise based on
 
the
 
abovementioned
 
IROs, examples
 
are
 
given for
 
each, as 
they were found in our DMA process.
E1-2 Policies related to climate change mitigation and adaptation
ESRS E1.22 – E1.24 Policies on climate change mitigation
The following table gives overview on the material Disclosure Requirements for E1 Climate Change with applicable Sea1 Offshore
 
policies and
procedures, in addition to link to IRO ID:
E1 Disclosure
Requirement (DR)
SEA1 Policies and procedures
Value Chain
Linked to E1 IRO ID
DR E1-1 Transition Plan
-ESG Strategy,
Own Operations
1, 2, 3, 4
DR E1-2 Policies
-Environmental Policy
-Environmental Management Plan,
 
-Environmental Aspect Register,
 
Own Operations
1, 2, 3, 4
DR E1-3 Actions and
resources
-Ship Energy Efficiency Management Plan
(SEEMP) - General
Own Operations
1, 2, 3, 4
DR E1-4 Metrics & Targets
-Key Performance Indicators (KPI)
-HSEQ Improvement Plan
 
Own Operations
1, 2, 3, 4
DR E1-5 Energy
Consumption
-SEEMP – General
-ESG Report 2023
Own Operations
1, 2, 3, 4
DR E1-6 GHG emissions
No specific procedures or plans inplace
All policies are signed by the CEO and General Manager. HSEQ
 
Director and other Directors own the operational procedures.
Following climate related high-level policies are implemented in SEA1 as part of the ISO 14001 certification:
-
Environmental Policy
-
Environmental Management Plan
-
Environmental Aspect Register
-
In addition to the ISM-related policy:
Shipboard Energy Efficiency Plan
 
(SEEMP)
The following gives a short description of the main policies and procedures relevant under E1 Climate Change.
 
 
Board of Directors’ Report
45
Sea1 Offshore Inc. Annual Report 2024
-Environmental Policy:
 
Sea1 Offshore
 
is
 
committed
 
to protect the
 
environment and minimize
 
the
 
negative
 
impact
 
from
 
our
 
operations.
 
We
 
strive for
 
zero
 
spills
 
and 
reduced emissions. Through continuous
 
improvement
 
we will
 
enhance our environmental performance.
-Environmental Management Plan:
 
The purpose of the Environmental Management Plan is to:
●
Describe and document the main elements of Sea1 Offshore’s
 
Environmental
 
Management
 
System and
 
their
 
interaction
 
and 
reference to related documents.
●
Provide an overview of the organization,
 
including responsibilities
 
and authorities, to
 
facilitate
 
effective
 
environmental
 
management. 
●
Meet the requirements of ISO 14001: 2015, MARPOL, other international
 
regulations,
 
applicable
 
Flag State
 
regulations,
 
our
 
clients, 
and other interested parties.
●
Describe the company`s processes for identification,
 
environmental
 
management
 
and
 
monitoring,
 
evaluation, classification, and 
continuous
 
improvement
 
of
 
the company
 
BMS.
●
Describe the company’s management responsibility for the environmentally safe operation
 
of each
 
ship.
●
Describe the management commitment, involvement, and full participation
 
as
 
a
 
key
 
factor in the
 
successful environment system. 
●
The Environmental Management Plan should be seen in relation
 
to the
 
Environmental Policy, annual HSEQ Programs and
 
company
KPIs.
-Environmental Aspect Register:
As part of the ISO 14001 certification,
 
the purpose
 
of this
 
procedure
 
is
 
to
 
describe the
 
Company’s
 
process
 
for identification,
 
evaluation and 
classification
 
of
 
environmental
 
aspects
 
applicable
 
to the
 
marine
 
operations in
 
Sea1
 
Offshore AS. 
-Shipboard Energy Efficiency
 
Plan (SEEMP)
 
: 
The SEEMP shall be considered as a practical
 
tool to
 
help
 
manage
 
the
 
use of energy efficiently 
onboard the vessels operated by Sea1 Offshore.
 
In
 
more
 
detail
 
to
 
describe
 
the
 
methodology
 
to
 
prioritize,
 
implement,
 
monitor
 
and
 
review 
energy efficiency
 
measures.
 
It
 
describes and
 
gives
 
priority to
 
energy
 
efficiency
 
initiatives
 
to
 
be
 
implemented
 
and
 
defines
 
roles and 
responsibilities.
 
It further
 
describes how
 
the
 
implemented
 
measures
 
are
 
to
 
be
 
monitored
 
to
 
document
 
their
 
effectiveness
 
and contains
 
a 
guideline for energy effective
 
vessel operation. 
ESRS E1.AR 18 Policies on climate risk
Currently no policies in BMS covering climate transition
 
risk
 
and opportunities. 
The company Emergency Response manual covers different
 
climate emergency scenarios.
E1-3 Actions and resources in relation to climate change policies
ESRS E1.26 – E1.29 Key Actions on Climate change
The company keep searching for solutions to reduce our GHG emissions and carbon footprint. Through internal Key
 
Performance Indicators,
Improvement plans and
Ship Energy Efficiency
 
plans, we constantly monitor and find areas for improvement. Current ongoing energy
efficiency and climate change mitigation actions are:
Shore power in port: All vessels in NS have a 690V/60Hz shore power system
 
installed which give zero GHG emissions and no local particle
emissions when connected, hence also relevant for E2 Pollution to Air.
 
In addition, the noise is considerably reduced for the benefit of crew
and the local community.
 
Linked to E1 IRO ID 1, and related to the Shipboard Energy Efficiency Plan (SEEMP). In addition, this action impacts
the target on fuel consumption in port. This is an ongoing
action.
Hybrid battery power system: Four vessels have been upgraded with hybrid battery
 
systems. Gives approx. 8-10% GHG emission reduction per
vessel and estimated 2-3% effect on overall fleet level.
 
Note these four vessels were sold on 5
th
 
July and on management after that. Linked to
E1 IRO ID 1, 2, 3, and 4, and related to the Shipboard Energy Efficiency Plan (SEEMP), Environmental Policy among others. This
 
is an ongoing
action but not linked to any target yet
.
Regular hull cleaning: Service agreement in place with ECOSubsea using state-of-the-art robot cleaning technology and collection of bio-waste
to shore. Gives around 4-8% reduction in transit, depending on several variables. Estimated effect
 
on overall fleet level 1-2%. Linked to E1 IRO
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sea1 Offshore Inc. Annual Report 2024
46
ID 1, 2, 3, and 4, and related to the Shipboard Energy Efficiency Plan (SEEMP), Environmental Policy among others. This is an ongoing action
but not linked to any target yet.
Use of Høglund
Ship Performance Monitor
 
(SPM) in connection with VPS Maress: The Maress software is a web-based tool where the crew on
board can see immediate effect on energy efficiency measures, and shore organization
 
can monitor and use data for further efficiency
improvement. Most of the fleet are using high-resolution data input from Høglund SPM. Gives an estimated effect
 
per vessel of approx. 5-10%
and estimated overall effect of approx.
 
4-6%. Linked to E1 IRO ID 1, 2, 3, and 4, and related to the Shipboard Energy Efficiency Plan (SEEMP),
Environmental Policy among others. This is an ongoing action but not linked to any target yet.
Yearly fuel campaign: Each year a fuel awareness campaign is arranged
 
to strengthen the focus on energy usage onboard. In 2024 SEA1
participated in a joint industry campaign arranged by VPS Decarbonization with over 300 offshore vessels and 12 companies. Linked to E1 IRO
ID 1, 2, 3, and 4, and related to the Shipboard Energy Efficiency Plan (SEEMP), Environmental Policy among others. This is an ongoing action
but not linked to any target yet.
In November 2024 Sea1 Offshore entered into shipbuilding contracts with Cosco Shipping (Qidong) Offshore Co. Ltd.
 
for construction of two
high-end Offshore Energy Support Vessels. The vessels are based on ST-245 design and will have capabilities to serve both oil & gas and
renewable markets. The vessels are Methanol ready,
 
and the generators can run on 100% biofuel. Linked to E1 IRO ID 1, 2 and 3, and related
to the Shipboard Energy Efficiency Plan (SEEMP), Environmental Policy among others. This is a long term action not linked to any
 
target yet
.
ESRS E1.AR 20 – E1.AR 22 Key Actions and Resources
Most of the actions above are highly dependent on allocation of financial resources (CAPEX). However,
 
detailed OPEX and CAPEX numbers
associated with each environmental initiative, including a plan for allocation of resources needed, will be presented in more detail
 
on medium
term basis.
 
E1-4 Targets
 
related to climate change mitigation and adaptation
Targets on Climate
SEA1 currently don't have targets according to the ESRS.
 
As given in the introduction, Sea1 Offshore’s high-level goals on environment and
climate change align with the targets set by the Norwegian Shipowners Association, which again comply with the overall sustainability goals
set by the European Union (EU).
 
The primary objective is to be climate neutral by 2050 in Scope 1.
 
To achieve the target for
 
2050 Sea1 Offshore will cut its greenhouse gas emissions (GHG) intensity by 50 percent per unit by 2030 compared to
2008 for Scope 1. By 2030 and onwards we will only order newbuilds with zero emissions technology to achieve a climate neutral fleet from
2050 and beyond.
For E1 Climate Change we track the effectiveness of our policies and actions in relation to material IROs
 
with the following existing Key
Performance Indicators (KPI):
SEA1 KPI on E1
Goals 2024 -2025
Linked to ESRS
Topic
Linked to IRO ID
Chapter Reference
 
Carbon Intensity Indicator (CII)
2.2% reduction p.a. in
Scope 1
E1
1, 2, 3, 4
ESRS E1.AR
Consumption in Port
2 % reduction p.a. in
Scope 1
E1, E2
1, 2, 3, 4
ESRS E2.20 – E2.22
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
doc1p48i0
 
Board of Directors’ Report
47
Sea1 Offshore Inc. Annual Report 2024
SEA1 does not currently have a transition plan in accordance with the ESRS in place to meet the primary objective to become climate neutral
by 2050, as described in DR E1-1.
 
Carbon Intensity Indicator (CII)
The Carbon Intensity Indicator (CII) has been the main KPI to quantify the emission reduction target for 2030 for Scope 1. The CII is defined by
Sea1 Offshore as follows:
 
 
The CII gives an expression on how fuel efficient the vessels are during offshore operations, independent on number and type of vessels. SEA1
Carbon intensity Indicator (CII) is using 2008 as base year.
Consumption in port:
Target for
 
Fuel consumption in port is 2% reduction per year, unit (tons/day) in Scope 1.
 
Our stakeholders have been involved through Management Review.
 
The target is not based on conclusive scientific evidence, and it is a
voluntary target.
E1-5 Energy consumption and mix
ESRS E1.35 – E1.39 and E1.AR 32 – E1.AR 35 Table on Energy mix
The following table gives an overview of the energy consumption and energy mix, split between the 15 SEA1 vessels and the 17 vessels on
management. Energy consumption for our office locations is included in the numbers for SEA1 owned vessels.
The consolidated energy consumption and mix are detailed in the table below. The basis, methodologies, and assumptions for calculating
energy consumption are directly linked to our Scope 1 and Scope 2 activity data from E1-6. These figures are converted
 
to MWh using
conversion factors provided by the Statistical
 
Institute of Norway, transitioning from CO2, SO2,
 
and CH4 to present MWh values for (1) fuel
consumption, (2) marine gas oil (MGO), and (3) liquefied natural gas (LNG).
 
For the consumption noted in point (4) of the table, which pertains to purchased or acquired electricity, values are directly extracted
 
from the
Scope 2 activity data, recalculated from kWh to MWh, with the assumption that all electrity is derived from fossil sources, as we do not
possess any Renewable Energy Certificates (RECs). For further details regarding estimation
 
uncertainties, please refer to ESRS
 
2 BP-2 13.
Energy consumption
 
and
 
mix
SEA1 owned vessels
Management
vessels
Total
(1) Fuel consumption
 
from coal
 
and coal products
 
(MWh)
0
0
0
(2) Fuel consumption
 
from crude
 
oil and petroleum products
(MGO) (MWh)
 
835 172
270 302
1 105 474
(3) Fuel consumption
 
from
 
natural gas
 
(LNG) (MWh)
15 399
14 402
29 801
(4) Fuel consumption
 
from
 
other
 
fossil sources (MWh)
0
0
0
(5) Consumption
 
of purchased or acquired electricity, heat,
steam, and cooling from fossil sources (MWh) (Vessels + office 
locations)
2 254
2 330
4 584
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sea1 Offshore Inc. Annual Report 2024
48
(6) Total fossil energy consumption
 
(MWh)
 
(calculated as the sum of lines 1 to 5)
852 825
287 034
1 139 859
Share of fossil sources in total energy consumption
 
(%)
100
100
100
(7) Consumption
 
from
 
nuclear
 
sources (MWh)
 
0
0
0
Share of consumption
 
from
 
nuclear
 
sources
 
in total
 
energy
consumption
 
(%)
0
0
0
(8) Fuel consumption
 
for renewable sources, including
 
biomass
(also comprising industrial and municipal waste of biologic origin,
biogas, renewable hydrogen, etc.) (MWh)
0
0
0
(9) Consumption
 
of purchased or acquired electricity, heat,
steam, and cooling from renewable sources (MWh)
0
0
0
(10) The consumption
 
of
 
self-generated non-fuel
 
renewable
energy (MWh)
0
0
0
(11) Total renewable energy consumption
 
(MWh)
 
(calculated as the sum of lines 8 to 10)
0
0
0
Share of renewable sources in total energy consumption
 
(%)
0
0
0
Total energy consumption
 
(MWh)
 
(calculated as the sum of lines 6 and 11)
852 825
287 034
1 139 859
ESRS E1.40 – E1.43 and E1.AR 36 – E1.AR 37 Energy intensity based on net revenue – High Impact sector
As SEA1 falls under the high climate impact sector ‘Maritime Transport’,
 
the energy intensity (Energy in GJ divided by Net Revenue in USD)
shall be presented. See table below for calculation of such energy intensity:
Energy intensity per net revenue
SEA1 owned
vessels
Non-owned
vessels
Total
Total energy consumption from activities in
 
high climate impact sectors per net revenue
 
from activities in high climate impact sectors
 
(MWh/MUSD)
852 825 MWh / 340
825 MUSD = 2.50
287 034 MWh / 340
825 MUSD = 0.84
1 139 859 MWh /
340 825 MUSD =
3.34
The Net Revenue of 340.825MUSD is taken from the SEA1 Offshore Inc. consolidated Income Statement
 
for 2024, Note 4 Segment Reporting.
E1-6 Gross Scopes 1, 2, 3 and Total
 
GHG emissions
Accounting
 
policies:
As mentioned
 
in
 
ESRS 2,
 
the climate
 
and emissions data
 
for
 
Scope 1 and 2
 
will
 
be
 
split
 
between
 
the
 
15 owned vessels
 
(less
 
2 vessels on
 
long-
term bareboat contracts in Brazil) and the 17 external vessels on management. For Scope 3 only data for SEA1 owned vessels will be
 
presented.
Scope 1 are based on actual fuel oil consumption
 
onboard
 
the vessels
 
as
 
taken the
 
Business
 
Management
 
System
 
Unisea, which
 
again are
taken from the official
 
vessel
 
logbooks
 
as
 
signed
 
by Captain and Chief Engineer. Then
 
recognised
 
emission
 
factors from ‘Statistisk
 
Sentralbyrå’ 
(SSB), 2020 are applied, also considering the CH4 and N2O emission to get the equivalent CO2-emission.
 
For Scope 2, SEA1 will present both the location
 
-based
 
method
 
(based
 
on
 
the
 
emissions
 
intensity
 
of
 
the local
 
grid area
 
where
 
the
 
electricity
usage occurs, ref data taken from Norwegian Water Resources and Energy Directorate (NVE)), and the marked based method (mixed emission
intensity for EU and other regions,
 
as taken from European Environment Agency (EEA)). SEA1 has not purchased any renewable energy
certificates
 
on
 
electricity. 
With reference to ESRS 2 SBM-3 and the Double Materiality Assessment (DMA), following four categories in Scope
 
3 are found significant
 
to
SEA1:
1.Purchased goods and services
 
Board of Directors’ Report
49
Sea1 Offshore Inc. Annual Report 2024
4. Upstream transportation
 
and distribution 
5. Waste generated in operations
6. Business travel
Emissions from all Company entities
 
were
 
allocated
 
using
 
operational
 
control
 
as
 
the consolidation
 
approach, consistent with Sea1’s
 
financial 
consolidation
 
approach.
 
There are no non-consolidated companies.
For Category 1, all Purchase Orders are extracted from the purchasing system and sorted on type of PO, owned vessels, region etc, and then an
estimation
 
of
 
amount
 
of
 
CO2
 
per USD
 
is
 
applied
 
based on
 
empirical
 
data.
 
See
 
also
 
details under ESRS
 
2
 
BP-2. 
For Category 4, the freight forwarders have provided output of all the freights provided for Sea1 Offshore
 
sorted
 
on vessel name,
 
freight type
(Air, Road, Sea, Rail, etc) and destinations.
 
Then recognised
 
CO2-factors
 
as typically taken
 
from
 
UK Government GHG
 
Conversion
 
Factors for 
Company Reporting
 
are applied on
 
the relevant freights in
 
2024.
For Category 5, the business management system has a Garbage Log-module where all waste are registered. Different
 
CO2
 
-factors
 
based on
empirical data have been applied on waste delivered to shore based facility, incinerated onboard and disposed to sea. See
 
also details under
ESRS 2 BP-2.
For Category 6, the travel agencies have provided output from their systems and sorted all travels made by applicable SEA1 companies and SEA
owned vessels.
 
Then these travels are sorted on Domestic,
 
Domestic
 
Abroad, Nordic, Europe,
 
and
 
Intercontinental
 
destinations.
 
Finally, 
recognised emission factors as typically taken from the International
 
Civil Aviation
 
Organization (ICAO)
 
are
 
applied. 
Category 2, emission from construction
 
of Capital Goods,
 
is
 
not
 
significant
 
for
 
SEA1 as
 
all
 
emissions
 
from
 
use of capital goods such
 
as vessels 
are included in Scope 1 and 2.
Category 3, emissions from Fuel- and Energy-Related activities,
 
is
 
not
 
significant
 
for
 
SEA1
 
as
 
all
 
emissions
 
are
 
under
 
Scope
 
1
 
and
 
2. 
Category 7, emissions from Employee Commuting,
 
is
 
not
 
significant
 
for
 
SEA1 as these
 
emissions
 
are very
 
minor compared
 
to other
 
Scope
 
3 
Categories and not least Scope 1.
Category 8, emissions from upstream Leased Assets, is not significant
 
for
 
SEA1 as there are no
 
leased
 
assets of significance
 
in
 
SEA1
 
. 
Category 9, emissions from downstream Transportation
 
and
 
Distribution, is
 
not
 
significant
 
for
 
SEA1
 
as
 
there are no
 
transportation
 
and 
distribution
 
of products after
 
the
 
point
 
of sale.
 
The outbound
 
transportation
 
and
 
distribution
 
services
 
are
 
included in
 
Category 4
 
above. 
Category 10, emission from Processing of Sold Products, is not significant
 
for
 
SEA1 as
 
we
 
do not have any processing of
 
sold
 
intermediate
products by third parties.
Category 11, emissions from Use of Sold Products, could be applicable as our clients use our vessels (direct use-phase), however as for
Category2 all emissions from the use of vessels, either onhire for client or offhire
 
are reported
 
under Scope 1
 
and
 
2. 
Category 12, emissions from End-of-Life Treatment of Sold Products, is not significant
 
for
 
SEA1 as
 
the
 
end-of-life treatment
 
method
 
and
assumptions
 
for sold
 
products are not
 
relevant.
 
The emissions
 
from
 
waste
 
generated
 
in
 
operation
 
of vessels are included
 
under Category
 
5. 
Category 13, emissions from Downstream Leased Assets, is not significant
 
for
 
SEA1 as all emissions
 
from leased
 
out vessels
 
(if such)
 
are under
Scope 1 and 2.
Category 14, emissions from Franchises,
 
is not significant
 
for
 
SEA1 as
 
there
 
are no
 
franchises in
 
SEA1.
Category 15, emissions from Investments, is not significant
 
for
 
SEA1 as
 
this category
 
is
 
applicable
 
mainly
 
for
 
commercial banks and other
financial
 
institutions. 
 
Note the regulated emission trading scheme EU ETS is not applicable for offshore
 
vessels until
 
year 2027. 
Please note 2024 is new baseline year.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sea1 Offshore Inc. Annual Report 2024
50
ESRS E1.44 – E1.45 Gross emissions in Tonnes
The following table gives an overview of the gross GHG emissions in tonnes for Scope 1-3 split between the SEA1 vessels and the vessels on
management:
SEA1 owned vessels
Management vessels
Total
Gross Scope 1 GHG emissions in Te CO2_eq
213 210
71 291
284 501
Gross Scope 2 GHG emissions in Te CO2_eq
– Location
 
based
 
134
123
257
Gross Scope 2 GHG emissions in Te CO2_eq
– Market based
507
617
1 124
Gross Scope 3 GHG emissions in Te CO2_eq
19 549
0
19 549
Total GHG emissions in Te CO2_eq –
Location
 
-based
 
232 893
71 414
304 307
Total GHG emissions in Te – Marked-based
233 266
71 908
305 174*
*As seen in table above, the marked-based method is conservatively
 
applied
 
for total sum
 
of emissions
.
ESRS E1.53 – E1.55 GHG Intensity based on Net Revenue
Total GHG-emissions per net revenue is given in the below table:
GHG intensity per net revenue
SEA1 owned vessels
Non-owned vessels
Total
Total GHG emissions per net revenue
 
(Te CO2_eq/MUSD)
233 266 / 340 825 = 0.68
71 908 / 340 825 =
0.21
305 174 / 340 825 = 0.90
ESRS E1.AR 48 Complete table on Scope 1, 2 and 3 emissions
See below table for complete overview of Scope 1, 2 and 3 emissions.
 
Retrospective
Milestones and targets
Base
year
2024
Comparative
Results for
2024
% N /
N-1
2025
2030
(205
0)
Annual
% Target
Scope 1 GHG emissions
Gross Scope 1 GHG
 
emissions (tCO2eq)
284 501
N/A
284 501
Same
year
N/A
CII
intensity
N/A
N/A
Percentage of Scope 1 GHG
emissions from regulated emission
trading schemes (%)
0%
N/A
0%
Same
year
N/A
N/A
N/A
N/A
Scope 2 GHG Emissions
Gross location
 
-based
 
Scope 2
 
GHG
emissions (tCO2eq)
257
N/A
257
Same
year
N/A
N/A
N/A
N/A
Gross market-based Scope 2 GHG
emissions (tCO2eq)
1 124
N/A
1 124
Same
year
N/A
N/A
N/A
N/A
Significant
 
Scope 3
 
GHG
 
emissions – SEA1 vessels
Total Gross indirect (Scope 3) GHG
emissions (tCO2eq)
19 549
N/A
19 549
Same
year
N/A
N/A
N/A
N/A
1. Purchased goods and services
10 445
N/A
10 445
Same
year
N/A
N/A
N/A
N/A
2. Capital Goods
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
3. Fuel and Energy related Activities 
(not incl in Scope 1)
0
N/A
0
Same
year
N/A
N/A
N/A
N/A
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Board of Directors’ Report
51
Sea1 Offshore Inc. Annual Report 2024
4. Upstream transportation
 
and distribution
 
1 122
N/A
1 122
Same
year
N/A
N/A
N/A
N/A
5. Waste generated in
 
operations
2 791
N/A
2 791
Same
year
N/A
N/A
N/A
N/A
6. Business traveling
5 191
N/A
5 191
Same
year
N/A
N/A
N/A
N/A
7. Employee Commuting
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
8. Upstream leased assets
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
9. Downstream Transportation
 
and
Distribution
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
10. Processing of Sold Products
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
11. Use of Sold Products
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
12. End-of-Life Treatment of Sold
Products
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
13. Downstream Leased Assets
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
14. Franchises
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
15. Investments
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Total GHG emissions
 
Total GHG emissions
 
(location
 
-based) (tCO2eq)
 
304 307
N/A
304 307
Same
year
N/A
N/A
N/A
N/A
Total GHG emissions
 
(market-based) (tCO2eq)
305 174
N/A
305 174
Same
year
N/A
N/A
N/A
N/A
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sea1 Offshore Inc. Annual Report 2024
52
ESRS E2: Pollution
As E1 Climate Change governs global climate GHG-gases such as CO2, CH4, N2O etc,
 
chapter E2 Pollution to Air addresses the local pollution
gases and particles such as nitrates (NOx), sulphurs (SOx) and Particular Matter (PM2.5). As NOx-
 
and SOx-emissions are of significance for the
vessels, E2 Pollution to Air is found material to SEA1, and E2 Pollution to Water through accidental
 
oil spills, use of chemicals and not least the
vessel emissions to sea as regulated by MARPOL, for example ballast water,
 
bilge water, sewage
 
and washing water.
The following IROs as listed below were identified as material for the Company and E2 Pollution:
Sub-Topic
IRO-description
Category
Value Chain
E2 IRO
ID
Pollution of
Water
The risk of oil spills during vessel refuelling in the upstream
value chain could pose a negative impact on the environment,
contributing to pollution of water.
Potential
Negative
impact
Upstream
5
Oil spill from vessels during operations or transits at sea cause
serious pollution to water / sea (and potentially land) within the
near vicinity of the vessel.
Oil spills can lead to serious water pollution and affect marine
life leading to bad PR for the Company, in addition to high cost
for cleanup, even though covered by insurance.
Potential
Negative
impact
Own
Operations
6
Oil spills can lead to serious water pollution and affect marine
life leading to bad PR for the Company, in addition to high cost
for cleanup, even though covered by insurance.
Reputation
Risk
During operations, vessel discharges, including bilge water,
ballast water,
 
and wastewater,
 
leading to pollution of water.
Negative
Impact
Own
Operations
7
Pollution of Air
When in port, vessels running on diesel engines or their own
power contribute to local pollution in the form of SOx and NOx
gases and particles that are emitted into cities
Negative
Impact
Own
Operations
8
Utilizing shore power where available demonstrates SEA1's
commitment to sustainability, enhancing public relations with
clients and the community
Reputation
Opportunity
SEA1 owned vessels, primarily powered by fossil fuels,
contribute to local pollution to air, releasing SOx
 
and NOx gases
during operations
Negative
Impact
Own
Operations
9
FuelEU, EU MRV and ETS are regulations that have / will set in
effect (2027) and regulate emissions globally, and these
regulations will be enforced by fines / fees for the GHG
emissions
Financial Risk
Vessels operated and administered by Sea1 Offshore,
 
though
owned by external partners, primarily powered by fossil fuels,
contribute to local pollution to air, releasing SOx
 
and NOx gases
during operations
Negative
Impact
Own
Operations
10
During operations clients can make decisions on vessel
performance such as fuel type and speed. This may result in
increased emissions and pollution to air from vessels if operated
at a non-environmentally friendly level which may result in
increased vessel expenses.
Reputation
Risk
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Board of Directors’ Report
53
Sea1 Offshore Inc. Annual Report 2024
From ESRS 2 General Disclosures – IRO Management
ESRS E2.11 and E2.AR 1 – AR 9 Process on material IRO
Reference is made to the Double Materiality Analysis as described in ESRS 2 IRO-1.
Our analysis has screened site locations and business activities in order to identify actual and potential pollution-related impacts, risks, and
opportunities, both in our own operations, but also upstream and downstream value chain.
E2-1 Policies related to pollution
ESRS E2.12 – E2.15 Policies
The following table gives overview on the material Disclosure Requirements for E2 Pollution with the applicable Sea1 Offshore policies and
procedures, in addition to link to IRO ID. The policies and procedures are implemented in SEA1 as part of the ISO 14001 certification.
E2 Disclosure
Requirement (DR)
SEA1 Policies and procedures
Value Chain
Linked to E2
IRO ID
DR E2-1 Policies
-Environmental Policy
-Environmental Management Plan
 
-Environmental Aspect Register
-Hazardous Substances, Storage and Control
Own Operations
5, 6, 7, 8, 9, 10
DR E2-2 Actions and
resources
-SEEMP – General
-ESG Report 2023
Own Operations
5, 6, 7, 8, 9, 10
DR E2-3 Metrics & Targets
-Key Performance Indicators (KPI)
Own Operations
5, 6, 7, 8, 9, 10
DR E2-4 Pollution of Air,
Water,
 
Soil
- IMO Technical File per vessel
-Vessel Ballast Water Management Plans
-Vessel Bilge Water Management Plans
-Vessel Sewage Treatment
 
Management Plans
Own Operations
5, 6, 7, 8, 9, 10
DR E2-6 Financial effects
from pollution
Not available (phase-in)
Own Operations
N/A
The Environmental Policy, Environmental Management Plan, Environmental Aspect Register and SEEMP are described in detail under E1-2. The
relevance of SEEMP under E2 is that any reduction
 
in
 
energy consumption
 
gives
 
reduction
 
of
 
GHG
 
emissions
 
but
 
also
 
reduction
 
in pollution to 
air.
-Hazardous Substances, Storage and Control:
 
The purpose of this procedure is to protect employees and the environment from negative
 
effects
 
of
 
hazardous substances,
 
to
 
meet
 
relevant 
laws and regulations
 
concerning safety and health of employees, to describe
 
means
 
of control of hazardous
 
substances
 
in
 
order
 
to reduce risk
and minimize exposure and finally
 
to reduce the
 
use of hazardous
 
substances and/or substitute
 
with
 
less
 
harmful
 
products.
 
This
 
is
 
linked 
towards pollution
 
to
 
both air and
 
water. HSEQ &
 
Compliance Advisor
 
is responsible for the implementation
 
of the
 
policy. 
ESRS E2.AR 10 – AR 11 Further on plans and procedures
Relevant for Pollution
 
to
 
Air:
IMO Technical File: All vessels operate under the IMO regulations
 
with
 
focus
 
on pollution
 
to
 
air via nitrogen
 
oxides and sulphur content as 
follows:
The IMO Marine Environment Protection
 
Committee
 
(MEPC)
 
adopted
 
from
 
2020
 
progressive reductions
 
of sulphur
 
(SOx) emissions
 
from ships, 
progressive reductions
 
of nitrate
 
(NOx)
 
emissions
 
from
 
marine
 
engines and
 
revised criteria for
 
Emission Control Areas
 
(ECA).
 
As a
 
result, ships
must use marine fuels with a sulphur content of no more than 0.50%, and in Sulphur Emission Control Areas (SECA) maximum 0.10%. Further
 
Sea1 Offshore Inc. Annual Report 2024
54
the IMO - NOx Tier 1-3 (Regulation
 
13)
 
measure
 
and
 
regulates the
 
NOx-emissions from
 
each engine
 
type
 
and
 
regulates type
 
of component
 
in
the engine related to the combustion
 
process.
Relevant for Pollution
 
to
 
Water,
 
following
 
MARPOL
 
regulations
 
that are relevant for the vessels
 
when
 
at sea: 
Ballast Water Management Plan:
The vessel ballast water management plans are in accordance with the requirements of the IMO International
 
Convention
 
for the Control and 
Management of Ships' Ballast Water and Sediments and the associated Guidelines.
From 2017, all ships must manage or clean their ballast water so that aquatic
 
organisms and pathogens are
 
removed
 
or
 
rendered
 
harmless
before the ballast water is released into a new location.
 
This
 
will
 
help prevent
 
the spread
 
of
 
invasive
 
species as
 
well
 
as potentially
 
harmful 
pathogens.
Sewage Management Plan:
In accordance with MARPOL Annex IV, all sewage discharges whether to sea or to shore based reception
 
facilities
 
shall be recorded with 
description
 
of date,
 
location
 
and quantity of
 
sewage
 
discharged.
 
In
 
cases
 
where
 
sewage
 
is
 
discharged to
 
sea, the
 
record shall
 
include 
information
 
on
 
the ship`s speed and
 
distance
 
to
 
nearest
 
shore at the
 
time
 
of sewage discharge. 
For our vessels with CLEAN or CLEAN DESIGN class notation
 
any discharge of untreated sewage
 
is
 
not allowed, except
 
in
 
emergency. Full use of
approved sewage treatment systems shall be made, in accordance with MEPC 227(64) and, the effluent
 
produced
 
must
 
not be
 
discharged 
unless the ship is more than 4 miles from shore.
Bilge water Management Plan:
The main cause of pollution
 
from ships is
 
accidental discharge of oil. The
 
MARPOL
 
Annex 1
 
regulation
 
requires that the following
 
equipment 
and systems should be in place:
●
Oil Record Book
●
Storage of oil onboard
●
Oily water separator
●
Monitoring of oil discharging
●
5 ppm arrangement
●
Standard discharge system
●
Loading/discharging system
●
Reporting
 
of oil discharged
 
to sea
All activities
 
that
 
involve
 
“bilge
 
water”
 
and “sludge”
 
shall immediately be recorded with the
 
right
 
letter
 
and
 
number
 
codes
 
in
 
the
 
Oil
 
Record 
Book onboard. All Cargo vessels where MARPOL Convention
 
is
 
applicable
 
must
 
have an oil
 
record
 
book
 
where
 
the
 
duty officer
 
shall
 
record
 
all 
oil or sludge transfers and discharges within the vessel.
E2-2 Actions and resources related to pollution
ESRS E2.16 – E2.18 Actions taken
For Pollution
 
to
 
Air
 
following
 
actions
 
have been
 
taken in
 
Sea1
 
Offshore: 
●
The VPS Maress software
 
is
 
a
 
web-based
 
tool
 
where
 
the crew
 
on board
 
can see
 
immediate
 
effect
 
on energy
 
efficiency
 
measures,
 
and 
shore organization
 
can
 
monitor
 
and use data
 
for further
 
efficiency
 
improvement. Reduction
 
in FO-consumption
 
will
 
reduce
 
both 
GHG-emissions but also local pollution
 
as
 
NOx,
 
SOx and Particular
 
Matters
 
(PM).
 
Linked to E2
 
IRO
 
ID
 
9
 
and
 
10,
 
and
 
related to
 
the 
Shipboard Energy Efficiency
 
Plan (SEEMP)
 
and Hazardous Substances,
 
Storage
 
and Control.
 
In
 
addition, this
 
action
 
is
 
affecting the 
target on fuel consumption
 
in
 
port. This
 
is
 
an ongoing action. 
●
Use of shore power in port, all our vessels in NS have a 690V/60Hz shore power system installed which give zero GHG emissions and
no local pollution
 
to
 
air
 
when
 
connected.
 
In
 
addition,
 
the
 
noise
 
is
 
considerably reduced
 
for the
 
benefit of
 
crew
 
and
 
the
 
local 
community. Linked to E2 IRO ID 8, and related to the Shipboard Energy Efficiency
 
Plan (SEEM
 
P). In
 
addition, this
 
action
 
impacts
 
the 
target on fuel consumption
 
in
 
port. This
 
is
 
an ongoing action. 
●
Use of Selective
 
Catalytic
 
Reactor
 
(SCR)
 
-system for
 
NOx-cleaning.
 
Such SCR
 
NOx
 
exhaust
 
cleaning
 
system gives
 
up
 
to
 
90%
 
reduction 
of NOx-gases. Use of such systems are supported by the Norwegian NOx-fund. Linked to E2 IRO ID 8, 9 and 10, and related
 
to the
Environmental Policy. This is an ongoing action
 
but not
 
linked to
 
any
 
target
 
yet.
●
As mentioned
 
above, use of
 
Marine
 
Gas Oil
 
(MGO)
 
with
 
low
 
sulphur content as
 
per
 
regulation
 
in
 
ECA-areas (max
 
0.50%
 
sulphur) and 
SECA-areas (max 0.10%) gives substantial
 
reductions
 
in
 
sulphur
 
(SOx)
 
emissions
 
from
 
ships.
 
Linked
 
to
 
E2
 
IRO 9
 
and 10, and
 
is
 
related 
to the Environmental Policy. This is an ongoing action
 
but not
 
linked to
 
any
 
target
 
yet.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Board of Directors’ Report
55
Sea1 Offshore Inc. Annual Report 2024
●
Two of the vessels were operating
 
on Liquid Natural Gas
 
(LNG) that
 
gives
 
very
 
low
 
emission of
 
NOx
 
and SOx
 
in
 
particular.
 
However, 
operatin
 
g
 
of LNG-engines on
 
low load
 
could give additional
 
emissions
 
of
 
methane
 
(CH4).
 
Linked
 
to
 
E2
 
IRO ID 9
 
and 10, and
 
related to 
the Environmental Policy. This is a short term actions
 
as
 
the two vessels
 
are sold
 
in
 
2024.
For Pollution
 
to
 
Water
 
following
 
actions
 
and
 
measures
 
are inplace: 
●
Ballast water cleaning (BWT), all our vessels have installed a dedicated ballast water treatment system in accordance with the Ballast
Water Convention.
 
Linked to E2
 
IRO ID
 
7 and
 
the
 
policies Environmental Aspect Register and Ballast
 
Water Management
 
Plan. This
 
is
an ongoing action
 
but not
 
linked to
 
any
 
target
 
yet.
●
Oily water separator (OWS), all our vessels having either CLEAN or CLEAN DESIGN class notation
 
have an
 
Oily
 
Water
 
Separator
onboard, cleaning the bilge or oily water as clean as 5ppm. Linked to E2 IRO ID 5, 6 and 7, and policy on Hazardous Substances,
Storage and Control. This is an ongoing action
 
but not
 
linked to
 
any
 
target
 
yet.
●
Sewage treatment. All our vessels with CLEAN or CLEAN DESIGN have a sewage treatment plant onboard that is operated in
accordance with MARPOL. Linked to E2 IRO ID 7 and policy on Hazardous Substances, Storage and Control. This is an ongoing action
but not linked to any target yet.
●
Accidental oil spills. All vessels have a strict maintenance regime on replacement of hydraulic hoses on equipment exposed to open
air and deck such as deck cranes and davits, in order to minimize likelihood of accidental oil spill to deck and sea. See also own KPI
on this below. Linked to E2 IRO ID 5 and 6. In addition,
 
this
 
action
 
is
 
related to the
 
Environmental Policy and
 
the
 
policy on
 
Hazardous 
Substances, Storage and Control, and impacts the target on oil spill to sea. This is an ongoing action
 
.
E2-3 Targets
 
related to pollution
ESRS E2.20 – E2.22 Targets
Sea1 Offshore makes use of the existing metrics and targets set by the ISO 9001 & 14001 standards as baseline for its own established set
 
of
Key Performance Indicators (KPI), towards
 
which its activities will be measured.
 
2024 is set as base year, hence no change over time.
Measurement and calculation methodology is described above using vessel logbooks, the reporting system in Unisea and manual data
collection into spreadsheets.
The following existing Sea1 Offshore KPIs are relevant for
 
E2 Pollution:
SEA1 KPI
Goals 2024 -2025
Linked to ESRS
Topic
Linked to IRO ID
Chapter Reference
 
Oil Spill to Sea
0
E2
5, 6
ESRS E2.20 - E2.22
Consumption in Port
2 % reduction p.a.
E1, E2
1, 4, 8, 9, 10
ESRS E2.20 – E2.22
Oil spill to sea:
The target for 2024 is zero oil spill to sea. This includes all accidental spills above 10 litres of bunker,
 
diesel, hydraulic and lube oil in addition to
chemicals and bulk cargoes. The target of oil spill to sea is connected to the Environmental Policy objective on pollution prevention. This KPI
 
is
monitored on quarterly basis and reviewed yearly in Management Review.
 
Our stakeholders have been involved through Management Review
 
.
 
The target is not based on conclusive scientific evidence, and it is a
voluntary target.
The results for 2024 were 1 oil spill to sea in Q2-24.
 
 
Sea1 Offshore Inc. Annual Report 2024
56
Consumption in port:
Fuel consumption for 2024 in port to be reduced with 2 % per year, unit (tons/day).
 
This is mainly regulated by the use of shore power.
 
When
connected to shore power there are zero fuel consumption and zero local pollution to air.
 
The target of consumption in port is connected to
the Environmental Policy objective on pollution prevention. This KPI is monitored on quarterly basis and reviewed yearly in Management
Review.
Our stakeholders have been involved through Management Review
 
.
 
The target is not based on conclusive scientific evidence, and it is a
voluntary target.
The KPI are reviewed yearly in the Management Review,
 
in addition to annual review and engagement of the Environmental Aspect register as
part of the ISO 14001 certification.
E2-4 Pollution of air,
 
water and soil
ESRS E2.26 – E2.27 Type of Pollutants
Overview of our main pollutants to air and water are given below.
Main pollutants to air:
NOx-emissions are calculated based on the engine emission factor from the IMO
Technical File and Engine Air Pollution Prevention Certificate
(EIAPP), in addition to account for possible SCR-cleaning of exhaust, ref above. Typical values are around
 
42kg NOx/Te MGO consumed,
without use of SCR.
SOX are calculated as a function between bunkered MGO with given sulphur content and the specific sulphur factor for
 
each engine type,
typical value 1.156kg SO2 per tonnes MGO.
PM2.5 is calculated as a factor for vessels operating on MGO-diesel, set to 1.5kg/Te
 
MGO.
For vessels operating on LNG, the methane-slip (CH4) is calculated based on a factor of 48.64kg CH4/Te
 
LNG. Please note this is a highly
uncertain number and very much dependant on the relative engine load.
Main pollutants to Water:
In accordance with MARPOL, the different vessel logbooks have information on the different
 
pollutants to sea, from amount of ballast water
treated, use of oily water separator (OWS) to quantity of sewage treated.
 
Similar applies to accidental oil spills where the vessel reports this to both external stakeholders such as Port state
 
and Harbour authorities,
but also to the reporting module in the company BMS.
ESRS E2.28 – E2.29 and E2.AR 21 Metrics on Pollutants
Ref Annex II of Regulation (EC) No 166/2006, the table below gives an overview of relevant amounts polluted to air and water
 
in 2024, split
between the SEA1-vessels and the vessels on management.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Board of Directors’ Report
57
Sea1 Offshore Inc. Annual Report 2024
No
CAS
number
Pollutant
SEA1 vessels
- to Air
kg/year
SEA1 vessels
- to Water
kg/year
Other vessels
- to Air
kg/year
Other vessels
– to Water
kg/year
Main Hazard
classes
8
 
Nitrogen oxides (NO
x
/NO
2
)
 
2 614 310
NA
746 762
NA
Health and
Environmental
Hazards
11
 
Sulphur oxides (SO
x
/SO
2
)
75 722
NA
24 507
NA
Health and
Environmental
Hazards
12
 
Total nitrogen
Ref No 8
NA
Ref No 8
NA
NA
86
 
Particulate matter (PM
10
)
98 256
NA
31 800
NA
Health Hazards
All the emissions listed above are classified as substances of concern (SoC). The total amount of these substances is shown in the table above.
We have identified the main hazard classes based on the three primary types of hazards referred
 
to by their nature in the definition of hazard
classes in CLP.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
doc1p59i0
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58
SOCIAL (S)
ESRS S1: Own Workforce
Since Sea1 Offshore does not exceed on its balance sheet date the average number of 750 employees during the financial year,
 
it has decided
to omit the information required by ESRS S1 respectively,
 
in accordance with Appendix C of ESRS 1 (phase-in). Nevertheless, for S1 SEA1
discloses the required information according to ESRS 2.17, in addition to relevant areas for
 
which we have data
For the 2024 reporting period Sea1 Offshore has had a workforce of 1385 employees where 708 are considered Non-employees, leaving a
total of 677 own employees.
Interests and views of stakeholders
Through the
Employment Policy
 
Sea1 Offshore seeks to ensure equal opportunities for all employees based on a culture built on respect for
individuals and by creating an environment where each employee will have opportunities to realize their full potential. The goal is to attract
talented people and maintain these in the Company.
By recruiting, maintaining and developing the best available human resources, the Company strengthens its market
 
position and its
reputation.
As described in the introduction, the vessel crew will be split into Own Employees (permanent crew with direct contracts) and Non-Employees
(includes the short-term hired crew from external manning agencies).
 
As per the double materiality assessment completed, there are key IROs listed that present
 
the importance of the workforce’s impact on the
Company, both negatively and positively.
As per the
Personnel & Crew Management Policy
 
the workforce is engaged by the Company through spot-surveys and other means of
communication that allow feedback on work environment.
As listed in the ESRS 2 sub-chapter
SBM-2
, the interests and views of representatives from SEA1’s
 
own workforce are:
Employees / Seafarers
Ecological impacts are important, especially related to potential oil spills. HSEQ is important,
especially relating to handling chemicals. Equality, diversity and inclusion should be key focus
area to attract more women into the workforce, especially offshore.
 
GHG emissions is a huge
impact that the Company has and should be prioritized. SEA1 have good routines on ESG topics
in place. For the climate and environmental impacts, there are tools and reporting systems
 
in
place ensuring good data and monitoring.
Workforce IROs and their interactions with strategy
 
and business model
When conducting the double materiality analysis, the following IROs were identified as material for the Company and S1 Own Workforce.
ESRS Topic
ESRS Sub-
Topic
Impact, Risk or Opportunity
Category
Time
Horizon
Value-Chain
S1 IRO
ID
S1 Own
Workforce
Equal
treatment and
opportunities
for all
Lagging behind competitors in digital
advancements could lead to decreased
operational efficiency and revenue loss, while
also making SEA1 a less attractive employer
for younger talent.
Financial
Risk
Medium
Term
Own
Operations
11
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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59
Sea1 Offshore Inc. Annual Report 2024
Diversity, equity and inclusion (DEI) Initiatives.
The predominantly male offshore workforce
at SEA1 can lead to potential harassment or
exclusion of female workers, despite being
uncommon. This highlights the importance of
maintaining gender balance policies, a robust
code of conduct, and ensuring open
communication channels to foster a safe work
environment for women.
Negative
Impact
Short Term
Own
Operations
12
Without investment in recruitment and
education programs of future seafarers there
is a danger of losing valuable competent
workers, both male and female that require
equal treatment and pay.
Reputation
Risk
Short Term
Own
Operations
13
Other work-
related rights
A breach of the company's IT system could
result in the unauthorized disclosure of
sensitive workforce information, violating
GDPR and impacting data privacy.
Potential
Negative
Impact
Short Term
Own
Operations
14
Breach into data-servers and outsider access
to internal systems and sensitive information
about the workforce.
Breaching GDPR regulation could also imply
large fines from the Norwegian Data
Protection Authority (Datatilsynet).
Financial Risk
Working
Conditions
The inherent dangers of offshore work
necessitate stringent health and safety
measures for SEA1's offshore workers. Serious
and potentially lethal accidents underscore
the importance of comprehensive safety
training and effective emergency procedures.
Potential
Negative
Impact
Short Term
Own
Operations
15
None of the listed IROs are directly connected to the Company’s strategy or business model, but they are essential to the running of the
Company. Risks and opportunities are certain to arise based on the abovementioned IROs, examples
 
are given for each, as they were found in
our DMA process.
Own workforce affected
All people in own workforce are impacted by company,
 
both the 1259 seafarers and the 126 office workers. As per the IROs that are
 
listed
there are many impacts that directly affect the workforce.
There are non-employees in the Company mainly as seafarers hired through a third-party company or agencies. The own employees offshore
are seafarers on NOR Offshore Service contracts under SEA1 affiliated companies.
Currently there are no direct links between strategy & business model and possible impacts on own workforce. Only relevant legislations
 
such
as the MLC, CBA and
Norwegian Due Diligence Act
 
that the Company must comply with affect the Company’s relationship with its workforce.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sea1 Offshore Inc. Annual Report 2024
60
A potential negative impact is the inherent dangers of offshore work which can result in serious and potentially lethal accidents. This
underscores the importance of comprehensive safety training and effective emergency
 
procedures (see IRO 19). For further potential negative
impacts please see the IROs’ impact descriptions listed above.
One possible positive impact is the investment in future generations of seafarers, particularly the inclusion of more women working aboard
vessels (see IRO 14). Also, for further reference to positive impacts on workforce please see IRO’s
 
listed in table above.
Particular characteristic
As shown in IRO 20 there is an inherent risk in the workforce, particularly the offshore segment of a lack of diversity which does potentially
lead to bullying and harassment towards particularly female seafarers. However,
 
measures and policies are in place to handle such situations,
such as the whistleblower and designated person ashore (DPA) procedures. SEA1
 
is also working towards resolving this potential issue as seen
in IRO 14 by investing in future offshore workers,
 
which include having more female seafarers.
Policies related to own workforce
Policy overview and cross-references
The following table gives overview on the material Disclosure Requirements for S1 Own Workforce
 
with applicable Sea1 Offshore policies and
procedures, in addition to link to IRO ID:
S1 Disclosure
Requirement (DR)
SEA1 Policies and procedures
Value Chain
Linked to S1
IRO ID
DR S1 Policies
-Health and Safety Plan
-Personnel & Crew Management Policy
-Ship Management: Operation,
 
Reporting
 
& Logistics
 
General   
-HR – Seafaring Personnel
-HR – Shore Personnel
-Recruiting
 
Principles and
 
Objectives 
Own Operations
11, 12, 13,
15
DR S1 Engaging
-Leadership Engagement
-Organization:
 
Leadership,
 
Departmental
 
and Shipboard
Responsibility
-Management of Change
-Confidentiality
 
Policy 
Own Operations
11, 14
DR S1 Remediate
negative
 
impacts
-Audit procedure
-Progressive Disciplinary Procedure
-Management Review
Own Operations
12
DR S1 Taking Actions
-Misc familiarization
 
procedures,
 
seafarers and shore staff 
- Correcting
 
and Corrective
 
Actions 
Own Operations
13
DR S1 Metrics and
Targets
-Key Performance Indicators (KPI)
-HSEQ Improvement Plan
 
Own Operations
15
DR S1 Collective
bargaining
agreements
-Sea1 AUS Enterprise Bargaining Procedure,
-Misc Collective
 
Bargaining agreements
 
(CBAs)
Own Operations
11
DR S1 Diversity
metrics
-ESG Report 2023
Own Operations
12
DR S1 Adequate
wages
-Shore Employee Manual
-Misc Collective
 
Bargaining agreements
 
(CBAs)
Own Operations
13
 
 
 
 
 
 
 
 
 
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61
Sea1 Offshore Inc. Annual Report 2024
DR S1 Social
Protection
-Whistleblower procedure
-Designated Person Ashore/DPA,
 
-Complaints Procedure
Own Operations
12
DR S1 Incidents
-Whistleblower procedure
-Designated Person Ashore/DPA
-Complaints Procedure
-Incidents Reporting
 
and
 
Handling
Own Operations
15
A more detailed description of each high-level policies is given here:
- Personnel & Crew Management Policy
The personnel and crew management philosophy of the Sea1 Offshore group of companies is based upon our vision to be the leading provider
and the most attractive employer.
 
CEO is accountable for the implementation of the policy.
- Leadership Engagement
The purpose of this procedure is to demonstrate the Management’s engagement and commitment
 
with regards to the safety of its workforce,
vessels and the environment. Applicable to Managers who have commercial-, production- or HSEQ responsibility,
 
including those who are
responsible for a process, a technical-
 
or operational service within Sea1 Offshore. HSEQ Director is accountable for the implementation of the
policy.
- Organization: Leadership, Departmental and Shipboard Responsibility
 
In compliance with the requirements of ISM 3.0 & 6.0 and ISO 5 the purpose of this governing procedure is to describe division of the areas of
responsibilities between Sea1 Offshore Corporate and the Sea1 Offshore DOC holding companies (Regions); and to ensure an organisational
structure and reporting lines in the Regions in compliance with regulations. COO is accountable for the implementation of the policy.
- Ship Management: Operation, Reporting & Logistics General
In compliance with the requirements of ISM 10.0 and applicable national rules and regulation, the purpose of this governing procedure is to
outline corporate operation policies, including communication between vessel and office, and logistics, cargo handling & care and
maintenance of vessel certificates. COO is accountable for the implementation of the policy.
Vision: The Sea1 Offshore group of companies is committed to its vision of being the leading provider and the most attractive employer.
Accordingly, SEA1 is committed to:
●
Building a high-performance culture based upon the Company’s core values and teamwork.
●
Meeting all applicable international and national conventions, laws, regulations, and industry requirements related to
 
manning of
the vessels and the onshore organization.
●
Having well qualified and experienced employees in all positions.
●
Striving for internal promotion where possible, both onshore and offshore.
●
Ensuring a continued high level of loyalty among all employees.
●
Exercising all efforts against forced
 
labour and human trafficking and also against discrimination on basis of race, nationality, colour,
and gender.
●
Ascertaining that all employees, regardless of nationality, are treated
 
with the same respect and fairness, being aware of cultural
differences.
●
Protecting all employees against workplace violence and harassment, such as physical assault, sexual assault, sexual harassment,
threats (verbal and written), emotional/psychological abuse, coercive and humiliating behaviour.
Sea1 Offshore Inc. Annual Report 2024
62
To fulfil our commitment, we will:
●
Continually strive to bridge the gap between sea and shore staff by arranging conferences
 
and regular meetings between
employment representatives and management representatives.
●
Improve communication with all nationalities by communicating in English – identified as the Company common working language.
●
Provide training and personal development to employees at any operational or management level in the
 
organisation.
●
Carry out employee surveys on a regular basis.
●
Select and recruit highly qualified and experienced personnel both onshore and offshore.
●
Ensure supply of crew by cooperation with well-known and experienced recruitment and placement services.
●
Encourage employees to proactively develop their knowledge in their respective area of competence.
●
Maintain trainee positions within the fleet
●
Maintain a high retention rate for both onshore and offshore personnel.
●
Seek information on a regular basis from international and national regulatory bodies.
Sea1 Offshore has a series of policies related to its own on- and offshore workforce that
 
we follow strictly to maintain compliance with
regulations and to ensure that SEA1 is a safe and serious employer for its workers.
 
Among our policies are the
Personnel & Crew Management
Policy,
 
the
Employment Policy
,
Personnel Policy and Governing Procedures
,
Health and Safety Policy
, and the
Security Policy
.
The SEA1 workforce’s health, safety
 
and overall satisfaction is taken into account by the
Employment Policy
 
which states that Sea1 Offshore
shall seek to ensure equal opportunities for all employees based on a culture built on respect for individuals and by creating an environment
where each employee will have opportunities to realize their full potential. The goal is to attract talented
 
people and maintain these in the
Company.
The Company is obliged to always refer to the
Code of Conduct
. In addition, the Company follows ISO 9001:2015 (International Standard for
Quality Management), MLC 2006 (Maritime Labour Convention, STCW 2010 (Standards of Training, Certification and Watchkeeping
 
for
Seafarers), UDHR (Universal Declaration of Human Rights).
Following this is the
Personnel & Crew Management Policy
 
document which is based upon SEA1’s vision of being the leading provider and the
most attractive employer.
 
Building on this is the
Personnel Policy and Governing Procedures
 
document which refers to the abovementioned
policy and is in compliance with international maritime resolutions (MLC 2006, STCW 2010), nationals rules and regulation and relevant ISO
standards, the purpose of this governing procedure is to ensure that the resources needed for the health, safety,
 
environment and quality
management system are available, that employment ethics and practices, as well as disciplinary procedures are aligned throughout
 
the
Regions in accordance with international conventions and national regulations, the appropriate infrastructure
 
and environment for the
operation of tasks.
The
Health and Safety Plan
 
is a supporting document to the beforementioned policies. This document states that Sea1 Offshore is committed
to provide a safe workplace for all our employees and subcontractors and strive
 
for zero harm to personnel by holding health and safety as our
priority.
Finally, the
Security Policy
 
states that the Sea1 Offshore group of companies are committed to provide a
 
secure working environment for all
personnel working on board our vessels. In order to comply with the ISPS Code and fulfil our commitment, we will establish and maintain the
required security measures, including cyber security measures, to prevent unlawful acts, which endanger the safety and security of persons
and property on board our vessels.
Apart from the mentioned policies, SEA1 also has its
Code of Business Conduct
.
 
 
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63
Sea1 Offshore Inc. Annual Report 2024
Human Rights Policies
For SEA1 the human rights policy commitments that are relevant for our own workforce,
 
according to
UN Guiding Principles on Business and
Human Rights
,
ILO Declaration on Fundamental Principles and Rights at Work
 
and the
OECD Guidelines for Multinational Enterprises
, include
the
Code of Business Conduct
 
and
Human Rights Policy
 
in BMS in addition to Due
Diligence Assessment
 
on
Transparency Act
 
(human rights in
supply chain). For other relevant policies see the table above.
All listed policies regarding own workforce are anchored in international and national legislations and frameworks.
 
This includes
the UN
Guiding Principles on Business and Human Rights
, which refer to the
International Bill of Human Rights
, the
Universal Declaration of Human
Rights
 
and the two Covenants that implement it, as well as the International Labour Organisation’s Declaration
 
on
Fundamental Rights
and
Principles at Work
 
and the core conventions that underpin it. The
Code of Business Conduct
 
is in line with the ILO
 
Declaration on Fundamental
Principles and Rights at Work
, OECD
 
Guidelines for Multinational Enterprises
, and the
Transparency Act
. These policies cover respect for the
human rights, including labour rights, of our workforce.
Human trafficking, forced labour, and child labour
The
Modern Anti-Slavery Statement Policy
 
in BMS covers human trafficking, forced-
 
and child labour.
Accident Prevention policy
The
Health and Safety Policy
 
in BMS covers workplace accidents handling and prevention. It is the foundation for the Company’s accident
prevention management system.
 
Policies aimed at eliminating discrimination, and harassment, promoting equal opportunities
 
SEA1 follows national and international legislation and does not discriminate in its employment or occupation.
Sea1 Offshore is in compliance with international, national and own regulations and codes that apply to its workforce and their overall
welfare, rights, security, rest,
 
etc. SEA1 abides by its own
Code of Conduct
 
and employment programme. Further, SEA1 follows
 
the UN's
Human Right Policy
, the EU's
Labour Law
 
and the Norwegian
Working Environment Act
 
(
Arbeidsmiljøloven
).
The two primary policies aimed at the elimination of discrimination, including harassment, promoting equal opportunities and other ways to
advance diversity and inclusion are
the Code of Conduct
 
and
Human Rights Policy
.
The policies do not cover any special form of discrimination or harassment, rather set a zero tolerance
 
for such acts among workers within the
Company structure regardless of gender,
 
age, ethnic origin and colour, religious background, political opinion, national extraction
 
or social
origin, or other forms of discrimination.
Through the Company's
Personnel & Crew Management Policy
 
SEA1 commits to ascertain that all employees, regardless of nationality,
 
are
treated with the same respect and fairness, being aware of cultural differences. Further,
 
protecting all employees against workplace violence
and harassment, such as physical assault, sexual assault, sexual harassment, threats (verbal and written),
 
emotional/psychological abuse,
coercive and humiliating behaviour.
Sea1 Offshore also has a
Working Environment Committee
 
(WEC), representing the employer and the employees from the shore-based staff.
The WEC's task is to create a safe and responsible working environment in the company and its premises.
Processes for engaging with own workforce
 
and workers’ representatives
Engaging with own workforce
SEA1 engages with its own workforce through initiatives such as work environment surveys and more dynamic "spot-surveys"
 
(which are held
more frequently) that reach out to both the onshore and offshore workforces for
 
their feedback on their working environments. Further,
 
each
vessel has a contact person in the shore offices through which they can relay any concern or request.
 
Sea1 Offshore Inc. Annual Report 2024
64
The perspectives of own workforce
The perspectives and opinions of the workforce relayed through various feedback channels to the Company do help inform
 
some of the
decisions and/or activities that aim at managing both actual and potential impacts on the workforce. This engagement between Company and
employees occurs directly through the mentioned channels in ESRS S1.25 – S1.26 and through its
Working Environment Committees
 
both for
the onshore and offshore workers. The roles within the Company that have
 
operational responsibilities for such engagements are the HR
Director for the onshore workforce, and the Marine HR Director for the offshore workers.
 
This is but a part of their broader responsibilities
within the Company. They delegate some of the responsibility to support staff
 
within their respective departments.
The frequency of the workforce engagement happens at regular quarterly intervals for the WEC meetings, apart from the larger
 
working
environment surveys which take place every 3 to 5 years. The spot-surveys
 
are completed at random throughout the year.
 
Ensuring that these
take place regularly is the responsibility of the Chief Human Resources Officer (CHRO) who relays the results to the CEO.
The effectiveness of the digital spot-surveys’ have proven
 
favourable for the 2024 period and will be continued in the years to come. The other
existing channels remain effective for their respective purposes in engaging the workforce in various
 
methods and situations. The results from
the spot-surveys and the working environment surveys are recorded in ALEXIS, the new HR management system
 
implemented in 2024.
 
In addition to internal channels of communication, there are also the trade unions on
NOR Offshore Service
 
that act as external
communication channels for offshore workers. The 4 trade
 
unions include:
●
Det Norske Maskinist Forbund
 
(DNMF)
●
Norsk Sjømannsforbund
 
(NSF)
●
Norsk Sjø Offisers forbund
 
(NSOF)
●
Sammenslutningen av Fagorganiserte i Energisektoren
 
(SAFE) (Included as of Dec. 13th 2024)
There is also the "voluntary" membership to the
International Transport Workers’
 
Federation
 
(ITF). Which in principle is connected to
Norsk
Sjømannsforbund
 
(
Seafarers' Union
) which have international agreements according to the CBA.
Gaining insight into the perspectives of own workforce
The Company gains insight into the perspectives and opinions of its workforce through spot surveys,
Medarbeidersamtale
 
(MAS) (annual
employee performance review), Whistleblower procedures for sensitive cases that require anonymity,
 
and finally the designated person
ashore (DPA) procedures. The DPA
 
is the most used channel between the offshore and onshore employees. The spot surveys are administered
by the HR department. Through these channels, Sea1 Offshore, as an example, gains insight into the perspectives
 
of women in our workforce.
Processes to remediate negative
 
impacts and channels to raise concerns
Channels and processes
Processes that SEA1 have in place to provide for or cooperate in the remediation of negative
 
impacts on employees, which include channels
available to the workforce to raise concerns and have them addressed include the Whistleblower channels, safety
 
representatives for both
onshore and offshore,
Protection & Environment Committee
 
(PEC), and finally the
Designated Person Ashore
 
(DPA). As of 2025 SEA1 will also
have vessel captains with leadership training in active duty who will be included in the channels for offshore workers
 
to raise concerns.
Sea1 Offshore is guided by the content of the UN
Guiding Principles on Business and Human Rights
 
and the OECD
Due Diligence Guidance for
Responsible Business Conduct
 
focused on remediation and grievance mechanisms.
Process descriptions
For the abovementioned whistleblower policy, PEC and the DPA
 
channels, they work as the grievance reporting channels that follow up on
cases until fully resolved. They can be reached through direct contact information which cannot be disclosed in this report, as well as through
anonymous email contact point. The grievance/complaint handling is done by the HSEQ department and safety representatives.
 
 
 
 
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65
Sea1 Offshore Inc. Annual Report 2024
Apart from the whistleblower procedure where anonymity is crucial for all parties, there are direct contact phone numbers and emails listed
and shared with employees that they have access to digitally. Further details below.
All relevant stakeholders are informed through information
 
meetings held at each vessel by members of the HSEQ department. The Company
supports the availability of these channels by allowing workers access in the BMS as well as sharing information on SEA1’s
 
website.
Information on DPAs can be found in internal systems,
 
not for disclosure.
Recorded incidents are thoroughly reviewed by relevant department leads, who assess whether measures should be taken
 
to remedy material
negative impacts on people and to prevent occurrence. Our non-conformative system
 
(BMS) does not assess whether and how the remedies
provided are effective.
 
Whistleblower Policy
Whistleblowing is the reporting of suspected wrongdoing or dangers in relation to our activities. This includes bribery, fraud
 
or other criminal
activity, miscarriages of justice, health and safety risks, damage to the environment
 
and any breach of legal or professional obligations.
How to raise a concern
If a concern cannot be raised with department directors, for any reason, all employees can contact the Whistleblowing Officers.
 
Their contact
details are in the document.
Confidentiality
Completely anonymous disclosures are difficult to investigate. If the whistleblower wants
 
to raise a concern confidentially,
 
the involved
officers will make every effort to keep the identity secret
 
and only reveal it where necessary to those involved in investigating the concern.
Protection and support for whistleblowers
SEA1 aims to encourage openness and will support whistleblowers who raise genuine concerns under this policy, even
 
if they turn out to be
mistaken. Whistleblowers must not suffer
 
any detrimental treatment as a result of raising a genuine concern. If the whistleblower believes
that they have suffered any such treatment,
 
the Whistleblowing Officers - COO and a member of the Board must be informed. Whistleblowers
shall not be threatened or retaliated in any way.
 
Anyone involved in such conduct may be subject to disciplinary action.
Designated Person Ashore (DPA)
In order to ensure the safe operation of each ship and provide a direct link between the Company and the personnel on board, the Company
has appointed a DPA which has direct access to the highest level of management in the Company.
Protection & Environment Committee (PEC) Meeting/Safety Meeting
The purpose of this procedure is to describe the statutory requirements for setup and work of a Protection & Environment Committee
 
and
describe the composition and management of the committee. Finally, it is to ensure a proper and responsible working environment
 
on board
all SEA1 vessels.
 
ESRS S1.33 & ESRS S1.AR 31 Employee awareness of channels and processes
As shown above with the different policies and procedures in place at SEA1 the members of the workforce are aware
 
of and have access to
relevant information to help them raise concerns or needs that have to be addressed. It is not assessed to what degree employees
 
trust these
channels or processes. See also ESRS G1-1.
 
 
Sea1 Offshore Inc. Annual Report 2024
66
Taking action and managing impacts on own workforce,
 
and the effectiveness of those actions
Actions taken to address and manage material impacts
As of 2024 there are a series of different actions take to address impacts on/from the workforce
 
which include HSEQ meetings during ship
visits, annual Masters Review,
 
PEC meetings (offshore/sea specific) as mentioned in previous subchapter,
 
Unisea reporting, incident reporting,
and actions that happen due to events or other initiatives. See ESRS S1.38.
Summary of action plans and resources to manage material IROs
The action plans in place at SEA1 to manage material impacts on the workforce include the
Quality Management Plan
, HSEQ
Improvement
Plan
,
Health & Safety Plan
,
ICT Disaster Recovery Plan
 
and the
Strategic IT Plan
.
Allocated resources for the management of material impacts include the Safety Coach, the
Context of the Organization and Interested Parties
document, and the
Management Review
.
Actions and initiatives
On social actions attracting the next generation to the maritime industry is a prominent issue, and SEA1 are contributing to following social
and educational initiatives:
In line with our
Personnel and Crew Management Policy
 
we continue our effort to give young people an opportunity and recruit young
Seafarers to our fleet. Young apprentices
 
serve their sea time on board (mainly two years), in order to receive their
Certificate of Proficiency
.
 
Linked to S1 IRO 12 and 13, and related to the Personnel & Crew Management Policy,
 
Recruiting Principles and Objectives among others. This
is an ongoing action and impacts the target on female seafarers.
 
Every year since 2010 several high school students have had their work placement on board SEA1 vessels. This is a partnership with
‘Kvadraturen Videregående Skole’
, a local high school in Kristiansand, Norway, and is one our initiatives to contribute to recruitment
 
of young
people, including female workers, to the maritime industry. Linked
 
to S1 IRO 12 and 13, and related to the Personnel & Crew Management
Policy, Recruiting Principles and Objectives among others. This is an ongoing action and impacts the target on female seafarers
 
.
Sea1 Offshore donates funds to
Maritim videregående skole Sørlandet
 
(Southern Maritime High School) and their training vessel
MS Lofoten
,
dedicated to recruitment of new students, both male and females. Linked to S1 IRO 12 and 13, and related
 
to the Personnel & Crew
Management Policy, Recruiting Principles and Objectives among others. This is an ongoing action and impacts the target on female seafarers.
Sea1 Offshore has teamed up with the
Christian Radich Sail Training Foundation
 
and the
Windjammer
Program
, intended for unemployed
youth facing social exclusion and who wants a career at sea. Linked to S1 IRO
 
13, and related to the Personnel & Crew Management Policy,
Recruiting Principles and Objectives among others. This is an ongoing action but not linked to any targets yet.
Sea1 Offshore Canada awards yearly two scholarships to students at the
Marine Institute, St. John’s
 
NL and three bursaries to students at
Nova
Scotia Community College
. Linked to S1 IRO 13, and related to the Personnel & Crew Management Policy,
 
Recruiting Principles and Objectives
among others. This is an ongoing action but not linked to any targets yet.
As a results of these initiatives, Sea1 Offshore was awarded a prize as Norway's best shipping company at
 
welcoming and training young
seafarers. The award comes from the
Norwegian Maritime Competence Foundation
, which consists of representatives from the entire
maritime industry.
 
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The inherent dangers of offshore work necessitate stringent health and safety
 
measures for SEA1s offshore workers. These actions are linked
to IRO 15:
 
The measures the company takes to reduce negative impacts, for example,
 
sedentary work and keep absenteeism low include close
collaboration with the
Occupational Health Service
 
(OHS), which is a service focused on preventive health and safety work.
Each year an action plan is developed for the current year,
 
including measures such as follow-up on sickness absence and prevention, internal
campaigns on ergonomics, vaccination against the annual flu, and health check-ups. The company also offers
 
a comprehensive health
insurance plan to reduce the risk of absenteeism. This includes coverage for treatments with psychologists
 
and physiotherapists.
The OHS is also involved in the
Working Environment Committee
 
(WEC) and various processes the company is engaged in, such as the
construction of new office buildings.
Pulse measurements are also used to assess whether any measures need to be implemented to improve, for example, employee well-being,
workload, etc.
In terms of managing material risk and opportunities related to our own workforce we measure for ergonomics and physical health,
 
mental
health and stress.
 
Digital advancements are pivotal to the company,
 
both for being an attractive employer,
 
and for operational efficiency. Linke
 
d
 
to IRO 11. Sea1
Offshore has put in place procedures in order to ensure GDPR compliance. Linked to IRO 14.
 
There are currently no actions in place for IRO 14.
Processes for identifying appropriate actions related to workforce
The processes through which SEA1 identifies what action is needed and appropriate in response to a particular impact on its own workforce
include analysing results and feedback from workers in the AlexisHR system
 
and the spot-surveys.
There are also more direct processes such as each departments internal meetings (for onshore workforce) and the managerial visits to vessels
where the vessel managers engage in talks with the offshore workforce.
Finally, the AMU and PEC meetings are held to find best solutions to solve concerns or issues raised by the workforce
 
and can in some cases
involve members of the Management Team.
Sea1 Offshore Inc. Annual Report 2024
68
Through these processes the appropriate actions are agreed upon on how to handle and solve the actual and potential negative impacts on
the workforce.
Material risks and opportunities arising from impacts and dependencies on own workforce.
The actions that are planned and/or underway to mitigate material risks for the Company that arise from its
 
impacts and dependencies on its
own workforce include the following policies and procedures:
o
Quality Management Plan
 
which consists of several other policies and procedures that refer to mitigating actions that handle
risks connected to the workforce.
o
HSEQ Improvement Plan
 
is an overall improvement plan for all aspects of the Company including its workforce.
o
Health & Safety Plan
 
primarily focuses on health and safety of workforce and action and improvements that can be made in
case of severe cases.
o
ICT Disaster Recovery Plan
 
is in place should a ICT issue occur to one or multiple of Company systems, which includes
workforce in onshore facilities or aboard vessels.
Actions planned and/or underway to pursue material opportunities for SEA1 in relation to its own workforce include:
o
Quality Management Plan
 
consists of policies and procedures for continuous improvements in all aspects of Company
operations and administration.
o
HSEQ Improvement Plan
 
is an overall improvement plan for all aspects of the Company including its workforce. It supplements
the Quality Management Plan.
o
Strategic IT Plan – 3 years
 
is a 3-year plan that works as a central instrument in the development of Sea1 Offshore as an
effective and co-working organization. IT shall be used actively in order to increase the quality and efficiency of the
organization.
Ensuring Company practices do not cause negative impacts on own workforce
The Company ensures that its own practices do not cause or contribute to material negative impacts on own workforce,
 
which include
practices in relation to procurement, sales and data use, through abovementioned policies and through workforce communication
 
channels
that allow workers to express opinions and concerns to HR and Management. This is either done through the Designated Person Ashore
 
(DPA)
channel, the AlexisHR system, and in worst-case scenarios the whistleblower channel.
Sea1 Offshore further makes use of managerial visits by Vessel Managers to their respective ships in the SEA1
 
fleet as a means of ensuring that
the offshore workers are satisfied with Company practices.
Tracking effectiveness of policies and actions
There are no set targets or KPI’s
 
for tracking the effectiveness of the abovementioned policies and procedures for the 2024 reporting period.
Resources allocated to management of material impacts
The allocated resources to the management of material impacts on the workforce by the Company include the
Safety Coach
 
from the HSEQ
Department who is responsible for vessel crews’ safety awareness, their work processes being carried out according to the Company’s
procedures and policies, engage with crew to evaluate improvement potential, advise, report all to HSEQ
 
Director for follow-up.
SEA1 also has its
Context of the Organization and Interested Parties
 
document which shows Sea1 Offshore’s context/interested
 
parties and the
strength and weakness (internal) and opportunities and threats (external) connected to them. The document is a working document that
allows the Company to keep track of the most common material impacts on its workforce and which internal policies that can
 
rapidly resolve
impacts.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Board of Directors’ Report
69
Sea1 Offshore Inc. Annual Report 2024
Lastly, the
Management Review
, the regularly held Sea1 Offshore review by the Management Team,
 
is a uniform, systematic and regular
review of the Business Management System (BMS) to ensure its continuing suitability,
 
adequacy and effectiveness and to assess areas for
improvement and need for changes to the BMS.
Measures taken to mitigate negative impacts on workforce
 
that arise from the green transition
As the Company has no Transition Plan in place no actions have been taken to mitigate
 
negative impacts on the workforce that have arisen
from a green transitioning. That includes areas such as training and reskilling, employment guarantees, and in the case of downscaling or mass
dismissal, measures such as job counselling, coaching, intra-company placements and early retirement plans.
Targets
 
related to managing material negative
 
impacts, advancing positive impacts
Targets for
 
negative and positive impacts
SEA1 KPI
Goals 2024 – 2025
Linked to ESRS Topic
Linked to IRO ID
Chapter Reference
LTI Rate
0
S1
15
ESRS S1-5
TRI Rate
< 1.95
S1
15
ESRS S1-5
HSE Reporting
> 550
S1
15
ESRS S1-5
Sickness Absence
4%
S1
12 & 15
ESRS S1-5
Officer
 
Retention
 
Rate 
>90%
S1
13
ESRS S1-5
Female Seafarers
4% by 2024
S1
12 & 13
ESRS S1-5
*KPI goals do not include the 4 vessels in Brazil.
For IRO ID 14 there are no set targets regarding GDPR and data privacy. Targets will be set within next reporting
 
cycle.
 
Although
 
compliance
with GDPR is of high priority, SEA1 does not track the effectiveness
 
of
 
our policies and
 
actions in
 
relation
 
to
 
data
 
privacy. 
The process for setting
 
the targets 
The company has an established KPI target structure, set by the board and management. Targets are communicated within the organization,
with opportunities
 
for input
 
and
 
feedback from
 
employees,
 
through the
Management Review
. Progress is shared through all-staff
 
meetings 
and communication
 
platforms
 
that reach
 
all
 
employees. 
With reference to ESRS 2 2.73 – 2.74 Disclosure of metrics and targets, the following Sea1 Offshore
 
Key Performance
 
Indicators (KPI)
 
are
relevant for S1 Own Workforce:
LTI Rate (LTIR):
A work-related injury which cases the injured person to be absent from work for at least one normal shift
 
after
 
the event
 
because
 
he
 
is
 
unfit to 
perform any duties.
The LTI Rate is calculated as follows:
 
(No. of LTI x 1.000.000) / Exposure hours (based on 24 hours/day)
 
Target for LTI-rate in 2024 is zero.
 
Our stakeholders have been involved through Management Review. The target is not based on conclusive scientific
 
evidence, and
 
it is
 
a 
voluntary target.
TRI Rate (TRIR):
Total Recordable Injuries (TRI): the total number of injuries and/or illnesses per million hours worked. Including: Lost Time Injury (LTI), Medical
Treatment Injury (MTI) and Restricted Work Case (RWC)
 
The TRI Rate is calculated as follows:
 
(LTIs + MTIs + RWCs) x 1.000.000 /
 
Exposure hours (based on 24 hours/day)
Target for TRI-rate in 2024 is below 1.95.
 
 
 
 
doc1p71i0
 
Sea1 Offshore Inc. Annual Report 2024
70
Our stakeholders have been involved through Management Review. The target is not based on conclusive scientific
 
evidence, and
 
it is
 
a 
voluntary target.
HSE reporting:
HSE reporting
 
in this respect
 
means
 
reporting
 
of
 
HSE Observations
 
and Near miss
 
reports.
 
HSE Observations
 
is
 
defined
 
to
 
include 
Environmental, Improvement Suggestion,
 
Positive,
 
Behavioural and
 
Safety
 
Observations. 
The HSE reporting
 
rate is calculated
 
as
 
follows:
 
 
(No. of safety obs. / Near miss reports) x 1.000.000 /
 
Exposure hours (based on 24 hrs/day)
Target for HSE-reporting
 
rate in
 
2024
 
is
 
above 550.
Our stakeholders have been involved through Management Review. The target is not based on conclusive scientific
 
evidence, and
 
it is
 
a 
voluntary target.
Sickness absence:
Sickness absence is defined
 
as days away
 
from
 
work
 
due
 
to sickness
 
documented by
 
sick
 
leave report from
 
doctor.
 
The sickness absence percentage is calculated as follows:
 
Number of sick days x 100 / (Number of workdays x number of employees)
Target for sickness absence in 2024 is below 4
%
.
 
Our stakeholders have been involved through Management Review. The target is not based on conclusive scientific
 
evidence, and
 
it is
 
a 
voluntary target.
Officer
 
retention
 
rate: 
The officer
 
retention
 
rate
 
expresses the
 
Company’s
 
ability
 
to retain
 
officers
 
within the
 
organization.
 
The
 
officer
 
retention
 
rate is
 
calculated as 
follows:
A = Number of officer
 
terminations
 
from
 
whatever
 
cause 
B = Number of unavoidable officer
 
terminations
 
(including
 
retirements,
 
long
 
term
 
illness
 
and organizational
 
changes) 
E = Number of all officers
 
who were employed
 
at the
 
beginning
 
of the year 
Target for Officer
 
retention
 
rate
 
in
 
2024
 
is
 
above
 
90%. 
Our stakeholders have been involved through Management Review. The target is not based on conclusive scientific
 
evidence, and
 
it is
 
a 
voluntary target.
Female Seafarers:
Goal: 4% female seafarers in Level 3 & 4 by end of 2024, 6% by end of 2025, 8% by 2026, 10% by 2027.
 
Level 3: 3rd Officer
 
/
 
3rd
 
Engineer
 
/
 
Ch
 
Steward (Cook)
 
/
 
Bosun 
Level 4: AB / Crane Operator / Fitter
 
Our stakeholders have been involved through Management Review. The target is not based on conclusive scientific
 
evidence, and
 
it is
 
a 
voluntary target.
Characteristics
 
of
 
the
 
undertaking’s employees
Characteristics
 
of
 
the
 
SEA1
 
workforce
The total number of employees in the SEA1 workforce as of 31.12.2024 is 1385 workers, comprising of 126 onshore office
 
workers and 1259 
seafarers working on SEA1 vessels.
Of the 1259 seafarers, 551 (own employees) are directly hired by Sea1 Offshore
 
as core crews, 395 seafarers are employed under
 
the
 
NOR
Offshore
 
Service agreement, and
 
the remaining
 
156 employees are connected
 
to
 
Brazil and Canada. Combined
 
with
 
the
 
126 onshore
employees, Sea1 Offshore
 
has a
 
total
 
of 677 own employees. The other 708
 
seafarers are considered
 
Non-employees.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Board of Directors’ Report
71
Sea1 Offshore Inc. Annual Report 2024
The number of employees per office
 
location
 
per 31.12.2024
 
is
 
as follows: 
o
Kristiansand,
 
Norway
 
(main
 
office):
 
69 
o
St Johns & Halifax, Canada: 7
o
Rio De Janeiro, Brazil: 42
o
Perth, Australia: 8
In total 126 onshore staff
 
worldwide.
As a global enterprise Sea1 Offshore
 
employs
 
workers
 
from
 
all countries
 
in
 
which
 
it
 
operates.
 
In the
 
onshore offices
 
SEA1 employees
 
are 
primarily of the same nationality
 
as
 
the country the
 
office
 
is
 
located
 
in. In
 
the
 
main
 
office in
 
Kristiansand
 
the employees
 
are
 
mostly
 
Norwegian 
except for a few who are of other European nationalities.
 
In Brazil the
 
employees
 
are all Brazilian,
 
while
 
in
 
Canada
 
all
 
employees are
 
Canadian. 
In Australia all employees are Australian apart from one Norwegian.
For the offshore
 
workforce
 
the core
 
employees are of
 
Norwegian
 
or Scandinavian nationalities,
 
while
 
the other seafarers are recruited
 
globally, 
primarily from Europe.
Breakdown of workforce
Gender
Number of Employees (head count)
Male
603
Female
74
Other
0
Not reported
0
Total employees
677
Country
Number of Employees (head count)
Norway (Incl. NOR Offshore
 
Service)
464
Australia
8
Brazil (Incl. seafarers)
166
Canada (Incl. seafarers)
39
Total employees
677
These data have been collected using reports from the personnel system to obtain accurate numbers of employees who are
 
100% FTE
permanent / temporary.
(Table 3 and 4 from S1.AR 55 and turnover rate have been excluded for FY 2024 and will be phase-ins for the 2025 sustainability report.)
Collective bargaining coverage
 
and social dialogue
 
Working conditions and terms of employment
The working conditions and terms of employment are set through European and Norwegian legislation regarding worker’s rights, rights set
 
by
the
Det Norsk Maskinist Forbund
 
(DNMF),
Norsk Sjømannsforbund
 
(NSF),
Norsk Sjø Offisers forbund
 
(NSOF), and the
Cross Border Alliance
(CBA) (manning agency). The seafarer CBA contracts vary in terms of the employees’ positions aboard vessels.
 
Number of employees covered by collective bargaining agreements
100% of all SEA1’s own seafaring employees are covered
 
by the CBA and abovementioned unions. The shore-based workers are covered by
national legislation in their respective countries, being Norway, Australia,
 
Brazil, Canada & USA.
Within the EEA Sea1 Offshore has its headquarters in Norway where its shore-based workforce is located. All onshore workers
 
are covered by
collective bargaining agreements set out by trade unions who have lobbied with the Norwegian government for workers’
 
rights and payments.
Legislations that cover all workers include in Norway,
 
thus the EEA, is the
Working Environment Act
 
(Arbeidsmiljøloven).
Outside the EEA SEA1 has no significant onshore employment (offices where total workforce exceeds 50 workers).
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sea1 Offshore Inc. Annual Report 2024
72
Diversity metrics
Gender distribution at top management and age distribution amongst employees
Among the top management which consists of 5 officers, including CEO, COO, CHRO,
 
CFO and CCO, there are no female members, resulting in
a gender distribution of 100% male.
For the combined Own Employees workforce, distributing them by age group in the categories: under 30 years old, 30-50 years
 
old, and over
50 years old, as illustrated below.
>30 years old
30 – 50 years old
50< years old
118
280
279
Adequate wages
Employees who receive adequate wages
All Sea1 Offshore employees, both onshore and offshore, receive adequate wages according to national and international
 
legislations as
seafarers are covered by the
CBA agreement
,
Maritime Labour Convention
 
(MLC),
International Transport Worker’s Federation
 
(ITF).
Social protection
Social protection against loss of income
The SEA1 workforce, both onshore and offshore, has social protection against loss of income due to major life events.
 
For the seafarers this is
covered by the CBA, while the onshore employees are covered by a variety of trade unions and national legislations depending on which
country they operate from. Alle workers also have
 
life, health and pension insurance in the Company.
Social protection through public programs and/or Company benefits
Following are the social protection benefits offered by SEA1 to its onshore employees through own initiatives
 
or national legislations.
Norway:
Sickness:
Self-certification for short-term sickness is allowed for up to 4 periods of 3 days
 
each (per year) with full pay.
In case of sickness, the employee is entitled to 16 days (referred to as the employer period) (arbeidsgiverperioden) of sick pay from
the employer, as stipulated in Sections 8-18 and 8-19 of the National Insurance Act (Folketrygden).
 
SEA1 currently provides full
salary after the employer period, meaning the employee receives their base salary during the sick leave period. Within this
timeframe, natural benefits such as pension and personal insurance, as well as other benefits (expenses for mobile phones,
computer-glasses, training, and mobile/broadband subscriptions covered by the company), are also included.
If the illness period extends beyond 12 months, the right to pension and personal insurance and other benefits ceases for the
remainder of the absence period. If an employee has used an employer period, they must return to work and be fully fit for 16
calendar days before they are again entitled to sick pay from the employer.
 
In such cases, the employee must apply to NAV for sick
pay starting from day 1.
Unemployment starting from when the employee works for the company:
Downsizing, Layoffs, Termination:
 
 
 
Board of Directors’ Report
73
Sea1 Offshore Inc. Annual Report 2024
Various situations may lead to unemployment. Payment
 
continues until the last working day. In some cases, it may
 
be
appropriate to enter into a severance agreement. The outcome of such agreements varies
 
(e.g., a certain number of
months’ salary after the work obligation ends, a lump sum, or educational support).
For public support during unemployment, employees are entitled to unemployment benefits (‘dagpenger’) from NAV.
Employment injury and acquired disability:
Employees are insured through DNB during employment with policies such as:
●
Employee Insurance
●
Treatment Agreement
●
Holiday and Leisure Travel Insurance.
The scope of coverage depends on where the injury occurred and whether it results in disability. Details of the coverage
can be found in the insurance terms.
Parental leave:
Parents are entitled to leave under Sections 12-4 and 12-5 of the
Working Environment Act
. The employer currently provides full
salary (base salary) for parental leave pursuant to the first paragraph
 
of Section 12-5, provided the conditions for parental benefits
under the
National Insurance Act
 
are met.
The employer pays full salary on days when the employee has applied for and been granted parental benefits from
 
NAV.
 
If parental
benefits are paused, the salary advance also stops.
If the absence leads to the loss of certain benefits, the following applies:
(For parental leave exceeding 49 weeks (at 100% pay)
 
or 61 weeks and 1 day (at 80% pay), the right to pension and personal
insurance, as well as other benefits covered by the company,
 
ceases for the remainder of the absence period.)
Breastfeeding leave:
Employees are entitled to 1 paid hour per day during the first year of the child's life on workdays with agreed working hours
 
of 7
hours or more, pursuant to Section 12-8 of the Working Environment Act.
Retirement:
The current age limit in the company applies, which is currently 70 years. As of now,
 
SEA1 has two pension schemes: Contribution-
based and Benefit-based.
In Norway, there is also the
National Insurance Pension
 
system, which includes everyone and contributes to the total pension pot.
SEA1 does not offer an AFP (Contractual Early Pension) scheme.
Canada:
All Canadian employees are covered against loss of income by way of Employment Insurance. Both employee and Employer pay into
 
this
government program. The employees are covered by social protection, through public programs
 
or through benefits offered by the
undertaking, against loss of income due to any of the following major life events:
Sickness
●
All employees are eligible for up to 10 paid Medical Leave days per year as per government legislation
●
All regular fulltime seafaring employees are protected through our private short-term
 
disability insurance for a period of up to
17 weeks. If unable to return to work at that time, they would transition to the government Employment Insurance program.
 
Sea1 Offshore Inc. Annual Report 2024
74
●
All regular fulltime shore staff are covered by both short- and long-term
 
disability insurance through our private insurance
provider. Again, short term
 
disability covers up to 17 weeks and long term can cover (depending on circumstances) up to age
60.
●
Temporary employees are covered
 
under the government’s Employment Insurance program – Sickness benefits.
Unemployment starting from when the own worker is working for the undertaking
All employees are covered for loss of income under Canada’s Employment
 
Insurance program, assuming all conditions are met (i.e.
# of insurable hours worked, reason for termination, etc.)
Employment injury and acquired disability
Workers Compensation Insurance is mandatory for
 
us as the employer to possess and covers a worker who is injured on the job.
The insurance covers an employees’ lost wages (to a max. weekly/monthly amount), medical appointments, rehabilitation costs,
etc.
Parental leave
Parental Leave is available through the government’s
 
Employment Insurance program for 12 months for regular benefits (or 18
months for extended leave). Employees receive 55% of their income to maximum amount per week when on regular benefits (33%
for extended benefits).
Retirement
●
Regular fulltime seafaring employees receive unmatched 5% (AB’s, Cooks) or 8% (Officers)
 
contributions to our group RRSP
(Registered Retirement Savings Plan)
●
Regular fulltime shore staff received up to 5% company matched RRSP contributions
●
All employees and employers pay into the government Canada Pension Program
 
(CPP)
Brazil:
There are some coverages according to current legislation and/or CBA in force,
 
besides life insurance for the SEA1 BR employees. The
employees are covered by social protection, through public programs or through benefits offered
 
by the undertaking, against loss of income
due to any of the following major life events:
Sickness
Private medical assistance provided by company in accordance with the current CBA. For the first
 
15 days, the salary continues to be
paid by the company. After the 15th day,
 
the employee starts to receive monthly assistance from the government (social security),
until he/she is fit to work again.
Unemployment
Starting from when the own worker is working for the undertaking: SEA1 BR: When fired, there is a Monthly allowance from the
government for a maximum of 5 months. This allowance ceases if the person gets a new job.
Employment injury and acquired disability
 
In the case of a working accident, it works the same way as for illness. Additionally, in the case of an accident at work, the
 
employee
acquires provisional stability for 12 months after he is fit to work again. In the case of acquired disability,
 
the person continues to
receive monthly assistance from the government (social security). If the disability is permanent, the government considers the
person permanently retired.
Parental leave
There is a legal provision and an ACT regarding days of absence, with these days being paid for by the company.
 
 
 
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75
Sea1 Offshore Inc. Annual Report 2024
Retirement
After retirement, the person begins to receive a monthly salary from the government (private pension) for
 
life.
Australia:
All employees are covered by either the government welfare system
 
when non-work related or by Workers
 
Compensation and Public Liability
when work-related incident takes place.
Sickness
Full-time and part-time employees can take paid sick leave if they can't work because of a personal illness or injury.
 
Full-time
employees are entitled to 10 sick days per year.
The Carer scheme is if an employee is required to care for somebody for longer than the accrued sick leave period.
 
It allows for up
to three months of unpaid leave. JobSeeker Payment is given to employees
 
with a valid medical certificate in case of sickness which
stops them from doing their usual work.
Unemployment
The JobSeeker Payment scheme gives financial help to workers between the age of 22 and pension age who are looking for work
 
or
in-between jobs.
Where employees are laid off and are permanently employed with a Company and not casual, they are entitled to a redundancy
payout and this amount is based salary and years of service employed by the company.
 
The longer the length of service the more
the payout will be.
Employment injury and acquired disability
 
The JobSeeker Payment scheme is given to employees with a valid medical certificate in case of employment injury and/or acquired
disability which stops them from doing their usual work for a short period of time. This comes as part of the Workers Compensation.
Parental leave
Parental Leave Pay is a payment
 
available to families under the Paid Parental Leave scheme, it is taxable
 
and paid at the rate of the
National Minimum Wage. It helps eligible working parents take time off to care for
 
a newborn or recently adopted child.
Retirement
Pension age is 67 years or older.
 
The Age Pension is the main income support payment system for people who have reaches pension
age. It is given to Australian residents who have been registered residents
 
for at least 10 years.
Incidents, complaints and severe human rights impacts
Number of work-related incidents and/or complaints and severe human rights impacts within own workforce
There have been no reported incidents to HR, Marine HR, HSEQ or the BMS concerning discrimination, harassments, breaches to human
rights, or similar work-related incidents. Neither have there been any material
 
fines, sanctions or compensations for the 2024 period.
 
Cases of severe human rights incidents
For the 2024 period there has not been any number of severe human rights incidents connected to SEA1’s
 
workforce. As a result, there have
been no fines, penalties or compensation for damages for the incident distributed by the Company this year.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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76
GOVERNANCE (G)
ESRS G1: Business Conduct
On governance, Sea1 Offshore aims to maintain the highest level of ethical standard in the way we
 
conduct our business. We fully support the
UN Global Compact Guiding Principles related to Human Rights, Labour, Environment
 
and Anti-Corruption. Over the years the Company has
introduced several policies from learnings that work towards a transparent,
 
ethical and corruption free business.
Our Corporate Code of Business Conduct gives guidance on how to behave when conducting our daily business activities related to human
rights, sexual harassment, bullying, whistleblowing, fair and equal treatment, conflict of interest, anti-bribery,
 
anti-corruption, antitrust and
competition, trade restrictions, export controls, boycott regulations and insider trading. A revision was
 
made in 2024 including requirements
in Transparency Act and the new membership in the Maritime Anti-Corruption Network (MACN).
Our Code of Conduct includes several topics on business conduct, however, the following impacts, risks
 
and opportunities are assessed as
material for Sea1 Offshore:
Sub-topic
IRO-description
Category
Value Chain
G1 IRO
ID
Corporate
culture
Cyber Security is pivotal for the Company. Without top-tier cyber
security the Company's sensitive information can be accessed
and "stolen".
Financial Risk
Own
Operations
17
High-end vessel services provided by Sea1 Offshore to clients
within the different maritime offshore segments that are in line
with the Company's visions and values of being Caring,
Committed and Competitive.
Financial
Opportunity
18
Corruption and
bribery
In a global offshore company like SEA1 the workforce is exposed
to many different locations, environments and cultures. This
might leave them exposed to cases of corruption and bribery.
Potential
Negative
Impact
19
Cases of corruption and bribery can be costly for the Company in
the form of reputation and possible court cases.
Reputation Risk
The breach of sanctions imposed by OFAC (US), UK, EU, UN,
Norway and other relevant bodies. These negative impacts can
come in the form of corruption cases.
Potential
Negative
Impact
Downstream
20
Non-compliance with regulations related to corruption and
bribery, including inadequate vetting and checks of ships,
threatens SEA1's legal operations and could result in severe legal
and financial repercussions. The negative impacts on the
Company can affect the board of directors, management and
other personnel in the form of fines, convictions, lawsuits and
imprisonment.
Financial Risk
Management
of
relationships
with suppliers
Poor relationships with critical suppliers can lead to increased
costs for SEA1 due to potential supply chain disruptions and the
need for alternative sourcing. Without critical suppliers the
Company will have a harder acquiring necessary equipment and
spare parts for vessels which will negatively impact operations
and might lead to stranded assets in worst-case-scenarios.
Financial Risk
Upstream
21
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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77
Sea1 Offshore Inc. Annual Report 2024
G1-1 Business conduct policies and corporate culture
ESRS G1.7 – ESRS G1.8 Policies
 
The most senior level accountable for the implementation of policies within Sea1 Offshore is the CEO and COO/General Manager.
The following table gives overview on the material Disclosure Requirements for G1 Business Conduct with applicable Sea1 Offshore policies
and procedures, in addition to link to IRO ID:
G1 Disclosure
Requirement (DR)
SEA1 Policies and procedures
Value Chain
Linked to
G1 IRO ID
DR G1-1 Business
Conduct Policies
-Business Code of Conduct
-Evaluation and Selection of Key Suppliers
-Trade Restrictions, Export Controls and Boycott
-Information & Communication Technology Policy
- Cyber Security Management
- Cyber Security Introduction
All value chain
21
DR G1-2 Relation with
suppliers
-Due Diligence and Sanctions
-Business Partners Policy
-Supply Chain Purchasing procedures
Upstream
20, 21
DR G1-3 Corruption and
bribery
-Business Compliance Procedure
-Conflict of interest
-Bribery and Corruption
-Antitrust and Competition
Own Operations
19, 20
DR G1-4 Metrics on
corruption and bribery
-ESG Report 2023
Own Operations
19, 20
All policies that affect certain groups of stakeholders, such as our onshore and offshore workforce,
 
are made available through the Business
Management System (BMS) and through printed copies that are distributed to each of the vessels in the SEA1 fleet. Should implementation be
an issue the HR, HR Marine and HSEQ departments in Norway are ready to help guide vessel crews and other offices with implementation.
The
Business Code of Conduct
 
being the main document, ref above with following policies relevant here:
-Conflict of interest
Our policy on conflict of interest states that all our people must pay particular attention to
 
conflict of interest issues. If you are faced with a
situation in which your financial, political or other interest, or those of individuals or entities close to you may conflict with that of the
Company, you must report it immediately to your line manager.
-Confidentiality
Our policy on confidentiality states that none of our people shall make use of, or divulge to,
 
any unauthorised person, and shall use his or her
best endeavours to prevent the use, publication or disclosure of,
 
any information of a confidential nature.
- Bribery and Corruption
Sea1 Offshore has a policy of zero tolerance for corruption and other illegal business means, and will not accept that our employees use
improper influence on any individual or entity. Due to the international nature of our business, we are subject to several
 
anticorruption laws.
Corruption is a threat to fair business, it undermines legitimate business activities, and any violation within our organization will be a threat to
our reputation and credibility in the market. This policy is consistent with the
United Nations Convention against Corruption
.
Sea1 Offshore Inc. Annual Report 2024
78
-Whistleblower procedure
According to our whistleblower procedure Sea1 Offshore is committed to conducting our business with honesty and integrity and we expect
all staff to maintain high standards. Any suspected wrongdoing should be reported as soon as possible, hence the adoption of this policy.
 
-Antitrust and Competition
Sea1 Offshore’s established policy is to comply fully with the competition and antitrust laws
 
in all jurisdictions in which the Company operates.
-Trade Restrictions, Export Controls and Boycott
The Company’s policy is to respect all trade restrictions, export controls regulations and boycott
 
regulations to which it is subject
-Cyber Security
 
SEA1 vessels are using systems that rely on digitalization, integration,
 
and automation which brings greater risk of unauthorized access or
malicious attacks to ships’ systems and networks. Hence, proper cyber risk management on board is a requisite. The SEA1
 
procedures on
Cyber Security are aligned with IMO resolution MSC.428(98) and IMO’s guidelines and provide practical recommendations on maritime cyber
risk management.
 
There are currently no targets (KPI) inplace on Cyber Security.
ESRS G1.9 Culture
The Company Values are
Caring, Committed, Competitive
. We encourage team spirit and knowledge sharing, and strive to perform our daily
work correctly, safely
 
and without causing damage to people, environment and equipment. We are driven by integrity and “walk the talk”.
Finally, we behave in a pro-active manner and are innovative
 
in our way of thinking as continuous improvement is our key to success.
Sea1 Offshore’s vision is to be a leading vessel provider and the most attractive
 
employer, delivering first class services worldwide.
Internally SEA1 promotes its culture through a culture programme, a varied onshore workforce
 
in terms of backgrounds and skills, officers’
conferences for our vessel crews and its
Introduction Programme for New Employees
 
(Land/Sea).
SEA1 evaluates its corporate culture through its stakeholder
 
engagement (Ref S1-2) in the form of “spot-surveys”,
 
WEC, DPA and MAS
(employee interviews). For external stakeholders this is done through customer
 
feedback surveys.
ESRS G1.10 Whistleblower & incident reporting procedures
As disclosed in subchapters S1-1, S1-2 & S1-3 the Company has mechanisms for identifying, reporting and investigating concerns about
unlawful behaviour or behaviour in contradiction to our
Code of Conduct
. This includes cases of corruption and/or bribery. The various
incident reporting procedures will be updated to include business conduct incidents.
The procedures include the
Complaints Procedure
,
Whistleblowing
 
procedure,
designated person ashore
 
(DPA),
Protection & Environment
Committee
 
(PEC),
Work Environment Committee
 
(WEC). All of these are internal procedures for the Company.
Among the procedures the whistleblower procedure is the most crucial and important one to maintain for the Company.
 
For further details on
this procedure see subchapter S1-3.
Sea1 Offshore has a strict policy of ensuring all employees undergo basic online training and Skillcast courses to prepare for
 
compliance with
the Company’s
Code of Business Conduct
 
and understanding how to identify and understand the risks of corruption and bribery. This is done
as part of the introduction course to the Company and is emphasised that employees learn these policies.
 
 
 
 
Board of Directors’ Report
79
Sea1 Offshore Inc. Annual Report 2024
G1-2 Management of relationships with suppliers
ESRS G1.12 – ESRS G1.13 Information on management of supplier relationships and supply chain impact
SEA1 manages its supplier relationship through its
Code of Conduct
 
which includes its
Policy on Business Suppliers.
The Company’s selection of
suppliers and business partners are chosen after pre-qualification standards are met, and after audit and purchasing procedures have
 
been
conducted by the Company as required by the
Management of Contractors
 
procedure and
Supply Chain: Purchasing and Sub-Contracting
Policy
 
in the BMS. These procedures are enforced by the
Quality Management Plan
.
ESRS G1.14 Late Payments
No policy on late payments, but remittance stats and business reviews are done and tracked.
ESRS G1.15 + ESRS G1.AR 2 – AR 3 Relationship to Suppliers
Sea1 Offshore’s approach to its relationships with its suppliers, taking
 
account of risks to the Company related to the supply chain and impacts
on sustainability matters is done through its
Management of Contractors
 
procedure and
Policy on Business Suppliers in the Code of Conduct
.
The policy and procedure entail the use of a pre-qualification scheme, audits, and due diligence procedures before final agreements are made
to conduct business.
The Company takes into account social and environmental criteria for
 
the selection of its suppliers via the Transparency Act and its
requirement for partners and suppliers to follow the SEA1 Code of Conduct standard,
 
and to have ISO 14001 & 9001 certification. Through
these policies and processes 'Vulnerable suppliers’ that are exposed to significant economic, environmental and/or social risks
 
are filtered out
and will not be engaged with for business.
The tasks of completing these screenings, audits and due diligence procedures fall on the HR, HSEQ and Procurement departments within
SEA1. The Procurement department employees undergo the general training from the
Training Matrix – Shore Staff
, as well as learning the
Purchasing – General and Supply Chain: Purchasing and Sub-contracting
 
procedures and all their connected, underlying documents and
procedures.
It is also the
Supply Chain: Purchasing and Sub-contracting
 
procedure and its underlying policies and procedures, which applies to all Sea1
Offshore regions, that informs which practices and supply chain management methods are best to minimise disruptions to either the
Company, supply chain partners or strategy.
 
This includes purchase and payment handling, distribution and supplier handling.
G1-3 Prevention and detection of corruption and bribery
ESRS G1.16 – ESRS G1.17 + ESRS G1.AR 4 Bribery Prevention & ‘Functions-at-risk’
The Company’s system to prevent and detect,
 
investigate, and respond to allegations or incidents relating to corruption and bribery are done
through various channels such as the Whistleblower procedure, the DPA and the
Protection & Environment Committee
 
(PEC). For further
details on these procedures see subchapters S1-1 – S1-3 in the
Social
 
(S) chapter.
To further emphasize the importance of preventing corruption and bribery incidents from
 
occurring the Company gives online training
through the e-learning course "
Bribery Prevention
" which is given to all employees in both the onshore and offshore workforces. – The other
introductory e-learning courses also emphasize on corruption and bribery prevention and relate high risk corruption areas and functions.
 
Following functions are identified to be ‘functions-at-risk’ with respect to risk for corruption and bribery:
Employees:
●
Onshore Supply Chain Workers
●
Onshore Vessel Managers
●
Offshore Vessel Crews (Incl. Captain, Chief Officer,
 
Chief Engineer, Master,
 
1st Officer, etc.)
Sea1 Offshore Inc. Annual Report 2024
80
Large acquisitions:
●
Risk Management and due diligence process
●
Large investments and payments (i.e. newbuild and shipyards contracts)
These ‘functions-at-risk’ are deemed so due to their respective tasks and responsibilities within the Company,
 
which for vessel crews and
managers involved travelling to high-risk corruption areas for
 
vessel trading and operating worldwide.
High-risk corruption areas, as defined by Transparency International
Corruption Perceptions Index
, in which SEA1 operates in include:
1.
Angola
2.
Argentina
3.
Brazil
4.
Congo
5.
Gabon
6.
India
7.
Myanmar
8.
Nigeria
9.
Somalia
10.
Venezuela
ESRS G1.18 & ESRS G1.AR 5 Allegation of Bribery & Internal Control
Whistleblowers and direct contact networks within the Company can take cases
 
further and work towards solutions to remedy the issues and
concerns of incidents and those involved. As disclosed above the procedures in place to prevent, detect, and address allegations or incidents
of corruption and bribery include the
Whistleblower procedure
, the
Designated Person Ashore
 
(DPA) and the
Protection & Environment
Committee
 
(PEC).
Investigators or investigating
 
committee are separate from the chain of management and have their identities kept
 
confidential to all except
for involved parties (which does not necessarily include offender) and individuals on a need-to-know involvement basis. These investigators
and/or investigating committees report outcomes to the administrative,
 
management and supervisory bodies that present overviews of the
incidents.
ESRS G1.20 Communication of policies
The Company communicates its main policies through e-learning courses and introduction courses to every employee shortly after hiring
them. All policies and procedures are also accessible in Unisea, SEA1’s business management system, which is open for all members of the
workforce. Relevant policies are forwarded
 
to suppliers and partners as part of the pre-qualifications process and audits.
ESRS G1.AR 6 Communicating policies
The Company has a series of obligatory introduction courses for all new employees when they begin their employment. The SEA1 e-learning
courses as made by Skillcast include:
◾
Code of Business Conduct
◾
Bribery Prevention
◾
Economic Sanctions
◾
SMS Induction Course
 
◾
No. 0005 ISM Code
ESRS G1.21 Training of workers
The anti-corruption and anti-bribery training programmes required by the Company come in the form of the
Bribery Prevention
 
e-learning
course which is given to all employees as part of the
Anti-Bribery Policy
. This results in the percentage of functions-at-risk covered by the
training programmes equals 100%.
 
 
 
Board of Directors’ Report
81
Sea1 Offshore Inc. Annual Report 2024
All members of the administrative, management and supervisory bodies are all given the same e-learning courses as the rest of the SEA1
workforce.
The nature, scope and depth of the anti-corruption and anti-bribery training programmes in the
Anti-Bribery Policy
 
which details the
definitions of bribery and acts of bribery with examples attached. The policy also clearly states:
The Group takes bribery and corruption very seriously, and any employee or other person acting on behalf of the Group that is found to be
violating this policy will be subject to disciplinary action, which may include termination of their contractual relationship with the Group
.
How to raise concerns or report bribery incidents is also included in the document, including how to deal with these incidents.
 
In terms of training the policy also specifically states:
All new employees/workers will receive training on this policy as part of their induction process and such training will continue throughout their
employment. Annual, appropriate and relevant training will be provided at all levels within the Group.
The policy will be communicated to all suppliers, contractors and business partners at the outset of forming business relationships with them
and where appropriate thereafter.
Finally, the policy details internal reviews and monitoring by the Company to ensure an updated
 
risk assessment and policy on bribery and
corruption cases, as well as listing the responsibilities of the relevant individuals in the Company.
G1-4 Incidents of corruption or bribery
ESRS G1.22 – ESRS G1.24 Number of incidents of corruption and bribery, and their outcomes
There have been zero registered cases of corruption and bribery for the 2024 reporting period. As such, there have
 
been no convictions or
fines for violation of anti-corruption and anti-bribery laws, and no actions have been taken to address such breaches to procedures within the
Company.
Targets
 
and Actions in relation to G1 Business Conduct
With reference to ESRS 2 2.62 and ESRS 2 2.81 Disclosure of Actions and targets
,
 
there are no Key Performance Indicators (KPI) relevant
 
for G1
Business Conduct.
 
Although SEA1 has developed a set of KPIs for quality management that are similar to KPIs for business conduct, there is not
a definitive link between the two. For this reason, SEA1 does not track the effectiveness of our policies and actions for business conduct.
 
We
aim to further integrate our ISO 9001 quality management system with the topics under the ESRS Business Conduct standard for
 
the next
reporting cycle.
 
 
doc1p83i0
Sea1 Offshore Inc. Annual Report 2024
82
APPROVAL OF ANNUAL
 
REPORT
The financial statements and related notes were authorized for issue by the Board on 4 April 2025 and will be presented to the
 
shareholders
for approval at the Annual General Meeting to be held on 25 April 2025.
 
 
4 April 2025
Christen Sveaas
Chairman
(Sign.)
Ørjan Svanevik
Director
(Sign.)
 
Celina Midelfart
 
Director
(Sign.)
Fredrik Platou
Director
(Sign.)
 
Bernt Omdal
Chief Executive Officer
(Sign.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income statement
 
 
83
Sea1 Offshore Inc. Annual Report 2024
PARENT COMPANY
CONSOLIDATED
2024
2023
(Amounts in USD 1,000)
Note
2024
2023
665
961
Operating revenue
2,4,14
340,825
336,026
-5,308
-3,908
Operating expenses
2,4,8,14,16,17,18
-175,144
-171,540
-4,644
-2,947
EBITDA
4
165,680
164,486
-
-
Depreciation and amortization
4,5,18
-57,780
-68,023
-
-
Reversal of impairment of vessels
3,4,5
159,116
66,966
-906
-
Other Gain/(loss)
21
-25,587
-178
-5,550
-2,947
Operating profit
241,430
163,251
Financial income and expenses
77,076
58,858
Financial income
19
8,768
11,053
239,513
146,865
Financial expenses
18,19
-28,064
-29,711
2,836
-221
Net currency gain/(loss)
19
-17,745
8,963
319,425
205,502
Net financial items
-37,041
-9,695
-
-
Result from associated companies
7
-52
550
313,875
202,555
Profit/(loss) before taxes
204,337
154,106
-14,173
-8,357
Tax benefit/(expense)
11
-1,388
19,027
299,702
194,198
Net profit/(loss)
202,948
173,133
-
-
Attributable to non-controlling interest
6
30,191
-1,381
299,702
194,198
Attributable to shareholders of the Company
172,758
174,515
Weighted average number of outstanding shares (1,000)
20
196,897
238,852
Earnings/(loss) per share
20
0.88
0.73
Statement of comprehensive income
2024
2023
(Amounts in USD 1,000)
2024
2023
299,702
194,198
Net profit/(loss)
202,948
173,133
Other Comprehensive income
Items that will not be reclassified to profit or loss
-
-
Pension remeasurement gain (loss)
-144
-739
Items that may be subsequently reclassified to profit or loss
-
-
Cash flow hedges
-5,304
5,297
-
-
Currency translation differences
7,279
-7,893
299,702
194,198
Total comprehensive income for
 
the year
204,779
169,799
-
-
Attributable to non-controlling interest
30,191
-1,381
299,702
194,198
Attributable to shareholders of the Company
174,588
171,180
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statements of Financial Position
—Assets
Sea1 Offshore Inc. Annual Report 2024
84
PARENT COMPANY
CONSOLIDATED
12/31/2024
12/31/2023
(Amounts in USD 1,000)
Note
12/31/2024
12/31/2023
Non-Current assets
-
-
Deferred tax asset
11
27,651
27,586
-
-
Vessels under construction
4,5
19,310
-
-
-
Vessels and equipment
4,5,18
618,127
845,148
-
-
Capitalized project costs
4,5
-
1,533
631,193
375,763
Investment in subsidiaries
6
-
-
-
-
Investment in associated companies
7
-
452
-
-
CIRR Loan deposit
12,24
6,879
13,759
7,741
88,288
Long-term receivables
9,14,24
8,303
31,337
638,934
464,051
Total non-current assets
680,270
919,814
Current assets
-
-
Trade receivable
2,24
40,700
41,626
117,668
28,418
Other short-term receivable
9,14,24
23,863
22,917
-
-
Inventories
25
5,344
5,288
15,830
42,303
Cash
2,10,24
68,302
97,325
133,498
70,721
Total current
 
assets
138,208
167,155
772,432
534,772
Total assets
818,478
1,086,969
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statements of Financial Position
—Equity and Liabilities
85
Sea1 Offshore Inc. Annual Report 2024
PARENT COMPANY
CONSOLIDATED
12/31/2024
12/31/2023
(Amounts in USD 1,000)
Note
12/31/2024
12/31/2023
Equity
153,544
238,852
Share capital
22
153,544
238,852
326,621
246,073
Other reserves
252,448
295,409
480,165
484,925
Shareholders' equity
405,992
534,261
-
-
Non-controlling interest
-
-5,085
480,165
484,925
Total equity
405,992
529,176
Liabilities
Non-current liabilities
-
-
Borrowings
2,12,14,24
273,275
249,861
-
-
CIRR Loan
12,24
6,879
13,759
3,693
3,114
Tax liabilities
11
-
92
-
-
Other non-current provision
13
14,728
19,010
861
-
Other non-current liabilities
8,18
17,164
18,683
4,554
3,114
Total non-current liabilities
312,046
301,405
Current liabilities
33
6
Accounts payable
2,24
4,421
16,996
-
-
Borrowings
2,12,14,24
65,740
212,525
-
-
Taxes
 
payable
11
1,999
2,228
287,680
46,727
Other current liabilities
13,14,18,24
28,280
24,639
287,713
46,733
Total current
 
liabilities
100,440
256,388
292,267
49,847
Total liabilities
412,486
557,793
772,432
534,772
Total equity and liabilities
818,478
1,086,969
339,015
444,213
Guarantees
15
-
686
 
4 April 2025
Christen Sveaas
Chairman
(Sign.)
Ørjan Svanevik
Director
(Sign.)
 
Celina Midelfart
 
Director
(Sign.)
Fredrik Platou
Director
(Sign.)
 
Bernt Omdal
Chief Executive Officer
(Sign.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of changes in equity
 
 
Sea1 Offshore Inc. Annual Report 2024
86
CONSOLIDATED
(Amounts in USD 1,000)
Total no.
 
of shares
Share
 
capital
Share
premium
reserves
Own
shares
Other
reserves
Retained
earnings
Share-
holders'
equity
Non-
controlling
interest
Total
equity
Equity as of 31 December 2022
238,852,052
238,852
163,160
-
-38,931
-
363,081
-3,703
359,377
Net profit/(loss)
-
-
-
-
-
174,515
174,515
-1,381
173,133
Cash flow hedge
-
-
-
-
5,297
-
5,297
-
5,297
Currency translation differences
-
-
-
-
-7,893
-
-7,893
-
-7,893
Pension remeasurement
-
-
-
-
-
-739
-739
-
-739
Equity as of 31 December 2023
238,852,052
238,852
163,160
-
-41,527
173,775
534,261
-5,085
529,176
Net profit/(loss)
-
-
-
-
-
172,758
172,758
30,191
202,948
Cash flow hedge
-
-
-
-
-5,304
-
-5,304
-
-5,304
Currency translation differences
-
-
-
-
7,279
-
7,279
-
7,279
Pension remeasurement
-
-
-
-
-
-144
-144
-
-144
Receipt of own shares related to
sale of vessels
-
-
-
-85,308
-
-145,046
-230,354
-
-230,354
Capital reduction, cancellation of
shares related to sale of vessels
-85,308,318
-85,308
-
85,308
-
-
-
-
-
Dividend
-
-
-
-
-
-72,839
-72,839
-
-72,839
Purchase of own shares related to
long-term incentive program
-
-
-
-400
-
-655
-1,055
-
-1,055
Long-term incentive program
-
-
-
400
-
-614
-214
-
-214
Acquisition of shares from minority
interests
-
-
-
-
-
1,605
1,605
-25,106
-23,501
Equity as of 31 December 2024
153,543,734
153,544
163,160
-
-39,552
128,840
405,992
-
405,992
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of changes in equity
 
 
87
Sea1 Offshore Inc. Annual Report 2024
PARENT COMPANY
(Amounts in USD 1,000)
Total no.
 
of shares
Share
 
capital
Share
premium
reserves
Own
shares
Other
reserves
Retained
earnings
Share-
holders'
equity
Equity as of 31 December 2022
238,852,052
238,852
163,160
-
-22,302
-88,983
290,727
Net profit/(loss)
-
-
-
-
-
194,198
194,198
Equity as of 31 December 2023
238,852,052
238,852
163,160
-
-22,302
105,215
484,925
Net profit/(loss)
-
-
-
-
-
299,702
299,702
Receipt of own shares related to sale of
vessels
-
-
-
-85,308
-
-145,046
-230,354
Capital reduction, cancellation of shares
related to sale of vessels
-85,308,318
-85,308
-
85,308
-
-
-
Dividend
-
-
-
-
-
-72,839
-72,839
Purchase of own shares related to long-
term incentive program
-
-
-
-400
-
-655
-1,055
Long-term incentive program
-
-
-
400
-
-614
-214
Equity as of 31 December 2024
153,543,734
153,544
163,160
-
-22,302
185,764
480,165
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of cash flows
 
Sea1 Offshore Inc. Annual Report 2024
88
PARENT COMPANY
CONSOLIDATED
2024
2023
(Amounts in USD 1,000)
Note
2024
2023
CASH FLOW FROM OPERATIONS
299,702
194,198
Net profit/(loss)
202,948
173,133
17,838
18,185
Interest expenses
29,157
34,209
-21,142
-30,543
Interest income
-8,768
-11,059
14,173
8,357
Tax expense
11
1,388
-19,027
 
-
 
-
Currency hedge
-
1,329
-
-
Result from associated companies
7
52
-550
-21,176
-
Share dividend
-
-
906
-
Other gain/loss
21
25,587
178
 
-
 
-
Depreciation and amortization
5
57,780
68,023
-17,176
-
Reversal of impairment on vessels and long-term receivables
5,19
-159,116
-72,737
-240,394
-165,097
Impairment of shares in subsidiaries
19
-
-
-9,329
228
Unrealized currency gain/(loss)
19,769
-12,546
102,770
12,496
Changes in short-term receivables and payables
-13,521
-5,920
624
-
Other changes
-2,581
2,324
126,797
37,825
Cash flow from operations
152,695
157,356
-11,362
-18,185
Interest paid
-26,610
-28,761
20,566
22,275
Interest received
6,592
8,450
-9
-12
Taxes
 
paid/(received)
-1,607
579
135,991
41,903
Net cash flow from operations
131,070
137,624
CASH FLOW FROM INVESTMENT ACTIVITIES
-347,855
-
Investment in fixed assets
4,5
-52,864
-33,492
116,594
-
Proceeds from sale of fixed assets
21
93,728
16
97,187
-11,126
Loan to subsidiaries
-
-
-62,957
-19,642
Investment in subsidiaries
-
-
107,158
-
Dividend received
7
380
2,578
 
-
 
-
Change in other non-current receivables
21,112
5,960
-89,873
-30,769
Net cash flow from investment activities
 
62,356
-24,937
CASH FLOW FROM FINANCING ACTIVITIES
-
-
Net Contribution from non-controlling interests of consolidated
subsidiaries
-8,573
3,109
-
-
Purchase of shares from minorities
 
-23,501
-
-
-
Repayment of lease liability
18
-993
-1,847
-
-
Repayment of long-term borrowing
12
-266,353
-112,145
-72,839
-
Payment of dividends to shareholders
 
-72,839
-
-
-
New loan facilities
 
12
150,000
-
-72,839
-
Net cash flow from financing activities
-222,258
-110,883
-26,720
11,134
Net change in cash
-28,832
1,804
42,303
31,394
Cash at bank as of 1 January
97,325
94,949
247
-225
Effect of currency exchange rate
 
differences
-190
571
15,830
42,303
Cash at bank as of 31 December
68,302
97,325
 
 
 
Notes to the accounts
89
Sea1 Offshore Inc. Annual Report 2024
 
Note 1
Accounting Principles
1.1 General
Sea1 Offshore owns and operates a fleet of offshore support vessels,
including Subsea vessels, AHTS vessels,
 
Platform Supply Vessels and
Fast Crew & Oil Spill Recovery Vessels. Sea1
 
Offshore Inc.
commenced operations 1 July 2005 and is an exempted company
under the laws of the Cayman Islands and is listed on the Oslo Stock
Exchange. The Company’s headquarter is located in Kristiansand,
Norway and the Company is tax domiciled in Norway. All references
to “Sea1 Offshore Inc.”,
 
“Consolidated” and “Company” shall mean
Sea1 Offshore Inc. and its subsidiaries and associates unless the
context indicates otherwise. All references to “Parent” or “Parent
Company” shall mean Sea1 Offshore Inc. as a parent company only.
The principal accounting policies applied in preparation of these
consolidated and parent company financial statements are set out
below. These policies have been consistently applied for all the years
presented, unless otherwise stated.
 
The financial statements were authorized by the Board of
Directors on 4 April 2025.
1.2 Basis of preparation
The consolidated and parent company financial statements are
prepared in accordance with IFRS Accounting Standards as adopted
by the EU. The financial statements also include any additional
applicable disclosures as required by Norwegian law and Oslo Stock
Exchange regulations. The financial statements have been prepared
under the historical cost convention, as modified by specific financial
assets and financial liabilities (including derivative instruments)
measured at fair value and assets held for sale measured at fair value
less costs to sell. The financial statements have been prepared under
the assumption of going concern.
 
All amounts are in USD thousands, unless otherwise stated.
Management is required to make estimates and assumptions
that affect the reported amounts of assets and liabilities. In addition,
the preparation of financial statements in conformity with 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. The areas involving a
higher degree of judgment or complexity or areas where
assumptions and estimates are significant to the consolidated
financial statements are disclosed in note 3 Critical Accounting
Estimates and Judgments.
(a) New and amended standards that have been adopted
 
The Company has applied the following standards and amendments
for the first time for their annual reporting period commencing 1
January 2024:
•
Classification of Liabilities as Current or Non-current and
Non-current liabilities with covenants – Amendments to
IAS 1;
•
 
Lease Liability in Sale and Leaseback – Amendments to
IFRS 16; and
 
•
Supplier Finance Arrangements – Amendments to IAS 7
and IFRS 7.
The amendments listed above did not have any impact on the
amounts recognized in prior periods and are not expected to
significantly affect the current or future periods.
(b) New standards and interpretations not yet adopted
 
Certain new accounting standards, amendments to accounting
standards and interpretations have been published that are not
mandatory for 31 December 2024 reporting periods and have not
been early adopted by the group. These standards, amendments or
interpretations are not expected to have a material impact on the
entity in the current or future reporting periods and on foreseeable
future transactions.
•
Amendments to IAS 21 -- Lack of Exchangeability
 
•
Amendments to the Classification and Measurement of
Financial Instruments – Amendments to IFRS 9 and IFRS 7
•
IFRS 19 Subsidiaries without Public Accountability
•
IFRS 18 Presentation and Disclosure in Financial
Statements
 
 
Sea1 Offshore Inc. Annual Report 2024
90
 
 
 
1.3 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 executive management team consisting of the
CEO, CFO, COO, CCO and CHRO.
 
The reportable segments are Subsea Vessels, Anchor-Handling
Tug Supply (AHTS) Vessels, Platform
 
Supply Vessels (PSVs), Fast
 
Crew
& Oil Spill Recovery Vessels and Other.
1.4 Foreign currency translation
(a) Functional and presentation currency
Items included in the financial statements of each of the Company’s
entities are measured using the currency of the primary economic
environment in which the entity operates (the “functional
currency”). The consolidated financial statements are presented in
USD, which is the Company’s presentation currency.
 
1.5 Non-current tangible assets and
 
maintenance costs
Land and Buildings and Vessels are stated at their historical cost
 
less
accumulated depreciation and net of any impairment losses. All non-
current tangible assets (excluding Land and Vessels under
construction) are depreciated on a straightline basis over the
estimated remaining useful economic life of the asset. The vessel
residual value is the estimated future sales price for steel less the
estimated costs associated with scrapping a vessel. The residual
value and expected useful life for all non-current tangible assets is
reviewed annually and, where they differ significantly from previous
estimates, the rate of depreciation charges is changed accordingly.
The vessels presently owned by the Company have an estimated
economic life of 30 years. Some components of the vessels have a
shorter economic life than 30 years. Such components are
depreciated over their individual useful lives. Each part of a vessel
that is significant to the total cost of the vessel is separately
identified and depreciated over that component’s useful life.
Components with similar useful lives are included in one component.
The Company has identified nine significant components relating to
its different types of vessels. See note 5 for additional information.
In accordance with IAS 16 and the cost model, drydocking costs
is a separate component of the vessel’s cost
 
at purchase with a
 
 
 
different pattern of benefits and are therefore
 
initially recognized as
a separate depreciable asset. Subsequently, the cost of major
renovations and periodic maintenance costs are capitalized as a dry-
docking asset and depreciated over the useful life of the parts
replaced. The useful life of the dry-docking costs will be the period
until the next docking, normally five years. Day-
 
to-day maintenance
costs are immediately expensed during the reporting period in which
they are incurred.
 
Capitalized project cost - Certain vessel contracts require
 
an
investment prior to commencing the contract to fulfil requirements
set by the charterer.
 
These investments are capitalized and
amortized over the term of the specific charter contract.
Gains and losses on the sale of assets and disposals are
determined by comparing the sales or disposal proceeds with the net
carrying amount and are included in operating profit.
1.6 Newbuild contracts and borrowing
 
costs
Instalments on newbuild contracts are classified as non-current
tangible assets. Direct costs related to the on-site supervision and
other pre-delivery construction costs are capitalized per vessel.
General and specific borrowing costs directly related to the
acquisition, construction or production of qualifying vessels are
added to the cost of those vessels, until such time as the vessels are
substantially ready for their intended use or sale. All other borrowing
costs are recognized in the profit or loss in the period in which they
are incurred.
 
1.7 Commercial Interest Reference
 
Rate (CIRR) loan
The Company has obtained one Commercial Interest Reference Rate
(CIRR) loan from the Norwegian Export Credit Agency. The duration
of the loan is 10 years and the cash proceeds from the loan have
been deposited in a fixed interest deposit account with a Norwegian
bank at the same interest rate as the loan (being off-market).
 
The
agreed periods of the deposit are identical with the periods of the
loan. The loan and the deposit are presented gross as there are
different counterparties.
1.8 Derivatives and hedging activities
The Company enters into derivative instruments for
 
economic
hedging purposes and not as speculative investments. Derivative
 
 
Notes to the accounts
91
Sea1 Offshore Inc. Annual Report 2024
instruments are primarily foreign currency contracts and interest
rate swaps, to hedge foreign currency exposures, for
 
example
related to operating expenses and vessel purchase commitments,
and interest rate exposures primarily related to long-term
borrowings. Where derivatives do not meet hedge accounting
criteria, they are accounted for at fair value through profit or loss.
For cash flow hedges that qualify for hedge accounting, the
effective portion of changes in the fair value of the hedging
instrument that is designated and qualifies as a cash flow hedge is
recognized in equity. These are cash flow hedges relating to highly
probable forecast transactions. The effective portion of changes in
the fair value of the hedging instrument is recognized in Other
Comprehensive Income. Amounts accumulated in equity are
reclassified in the period when the hedged item affects profit or loss.
When the forecast transaction is no longer expected to occur,
 
the
cumulative gain or loss and deferred costs of hedging that were
reported in equity are immediately reclassified to profit or loss.
 
Derivatives are presented as current assets or liabilities to the
extent they are expected to be settled within 12 months after the
end of the reporting period.
 
Derivatives are initially recognized at fair value on the date a
derivative contract is entered into and are subsequently remeasured
at their fair value.
 
1.9 Revenue recognition
The Company’s activity is to employ different types of offshore
support vessels, including Subsea vessels, AHTS vessels,
 
PSVs
 
and
Fast Crew & Oil Spill Recovery Vessels. Revenue
 
comprises the fair
value of the consideration received or receivable for the sale of
goods and services in the ordinary course of the Company’s
activities. Revenue is shown net of value-added tax, withholding tax,
returns, rebates and discounts and after elimination of sales within
the Company. Revenue is recognized
 
as follows:
Charter rate contracts
Time charter contracts contain a lease element and a performance
obligation for the provision of time charter services. The lease of the
vessel, representing the use of the vessel without any associated
performance obligations or warranties, is accounted for in
accordance with the provisions of IFRS 16 Leases. Typically,
 
lease
revenues are recognized on a straight line basis over the lease term.
Revenues for time charter services are recognized over time as the
service is rendered in accordance with IFRS 15.
 
1.10 Government grants
Grants related to net wages arrangement in Norway are
 
recognized
as a reduction of wage cost.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Risk Management Note 2
 
Sea1 Offshore Inc. Annual Report 2024
92
 
Note
 
2
Financial Risk Management
2.1 Financial risk factors
The Company is exposed to a variety of financial risks through its
ordinary operations and debt financing. Such risks include foreign
exchange risk, interest rate risk, credit risk and liquidity risk. To
manage these risks, management reviews and assesses its primary
financial and market risks. Once risks are identified, appropriate
action is taken to mitigate the identified risk. The Company’s risk
management is exercised in line with guidelines approved by the
Board.
 
2.2 Foreign exchange risks
USD is the reporting currency for the Company. Functional currency
for the Parent is USD, and for the vessel-operating subsidiaries USD,
NOK, BRL, AUD and CAD are the functional currencies. Other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
subsidiaries use USD, NOK or EUR as functional currency. The
Company operates internationally and is exposed to foreign
exchange risks arising from various currency exposures primary with
respect to NOK, GBP,
 
EUR, BRL, CAD and AUD. Foreign exchange risks
can be divided into transaction risk from paying and receiving foreign
currency, and translation risk due to recognizing assets and liabilities
in USD. The Company had in 2024 mainly USD, NOK, EUR, GBP,
 
BRL,
CAD and AUD revenues and expenses, same as in 2023. The NOK and
the BRL currencies have been volatile against the USD in 2024 and in
2023.
The following sensitivity table demonstrates the impact on
the Company’s profit and equity before tax from
 
potential changes
to the exchange rates, all other variables held constant.
CONSOLIDATED
Foreign exchange risk rate 10%
(Amounts in USD 1,000)
+10% movements
-10% movements
31 December 2024
Carrying amount
Profit/(loss)
Equity
Profit/(loss)
Equity
Financial assets
Cash and cash equivalent
68,302
2,237
2,237
-2,237
-2,237
Accounts receivable
40,700
953
953
-953
-953
Impact on financial assets before tax
3,190
3,190
-3,190
-3,190
Financial liabilities
Accounts payable
4,421
-375
-375
375
375
Borrowings
339,015
0
0
0
0
Impact on financial liabilities before tax
-375
-375
375
375
Income statement
Operating revenue
340,825
12,967
12,967
-12,967
-12,967
Operating expenses
175,144
-11,877
-11,877
11,877
11,877
Impact on operating result before tax
1,090
1,090
-1,090
-1,090
Total increase/decrease before
 
tax
3,905
3,905
-3,905
-3,905
Allocation per currency
NOK
-4,388
-4,388
4,388
4,388
EUR
1,177
1,177
-1,177
-1,177
GBP
879
879
-879
-879
BRL
4,069
4,069
-4,069
-4,069
CAD
981
981
-981
-981
AUD
1,188
1,188
-1,188
-1,188
Total increase/decrease before
 
tax
3,905
3,905
-3,905
-3,905
 
Notes to the accounts
93
Sea1 Offshore Inc. Annual Report 2024
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CONSOLIDATED
Foreign exchange risk rate 10%
(Amounts in USD 1,000)
+10% movements
-10% movements
31 December 2023
Carrying amount
Profit/(loss)
Equity
Profit/(loss)
Equity
Financial assets
Cash and cash equivalent
97,325
5,137
5,137
-5,137
-5,137
Accounts receivable
41,626
1,527
1,527
-1,527
-1,527
Impact on financial assets before tax
6,664
6,664
-6,664
-6,664
Financial liabilities
Accounts payable
16,996
-1,304
-1,304
1,304
1,304
Borrowings
462,387
-2,395
-2,395
2,395
2,395
Impact on financial liabilities before tax
-3,700
-3,700
3,700
3,700
Income statement
Operating revenue
336,026
14,995
14,995
-14,995
-14,995
Operating expenses
171,540
-12,449
-12,449
12,449
12,449
Impact on operating result before tax
2,546
2,546
-2,546
-2,546
Total increase/decrease before
 
tax
5,511
5,511
-5,511
-5,511
Allocation per currency
NOK
-3,209
-3,209
3,209
3,209
EUR
2,186
2,186
-2,186
-2,186
GBP
3,833
3,833
-3,833
-3,833
BRL
3,974
3,974
-3,974
-3,974
CAD
775
775
-775
-775
AUD
-2,049
-2,049
2,049
2,049
Total increase/decrease before
 
tax
5,511
5,511
-5,511
-5,511
 
Financial Risk Management Note 2
 
Sea1 Offshore Inc. Annual Report 2024
94
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PARENT COMPANY
Foreign exchange risk rate 10%
(Amounts in USD 1,000)
+10% movements
-10% movements
31 December 2024
Carrying amount
Profit/(loss)
Equity
Profit/(loss)
Equity
Financial assets
Cash and cash equivalent
15,830
-58
-58
58
58
Impact on financial assets before tax
-58
-58
58
58
Financial liabilities
Accounts payable
33
-3
-3
3
3
Impact on financial liabilities before tax
-3
-3
3
3
Income statement
Operating revenue
665
-
-
-
-
Operating expenses
-5,308
-519
-519
519
519
Impact on operating result before tax
-519
-519
519
519
Total increase/decrease before
 
tax
-580
-580
580
580
Allocation per currency
NOK
-574
-574
574
574
Total increase/decrease before
 
tax
-580
-580
580
580
PARENT COMPANY
Foreign exchange risk rate 10%
(Amounts in USD 1,000)
+10% movements
-10% movements
31 December 2023
Carrying amount
Profit/(loss)
Equity
Profit/(loss)
Equity
Financial assets
Cash and cash equivalent
42,303
4
4
-4
-4
Impact on financial assets before tax
4
4
-4
-4
Financial liabilities
Accounts payable
6
-
-
-
-
Impact on financial liabilities before tax
-
-
-
-
Income statement
Operating revenue
961
-
-
-
-
Operating expenses
-3,908
-350
-350
350
350
Impact on operating result before tax
-350
-350
350
350
Total increase/decrease before
 
tax
-346
-346
346
346
Allocation per currency
NOK
-346
-346
346
346
Total increase/decrease before
 
tax
-346
-346
346
346
 
 
Notes to the accounts
95
Sea1 Offshore Inc. Annual Report 2024
2.3 Credit risks
Concentration risks
The Company's credit risk is primarily attributable to its trade and
other short-term receivables.
 
The exposure to credit risk for trade and other short-term
receivables is measured on an ongoing basis and credit evaluations
are performed for customers identified to be risky.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
On 31 December 2024, the provision for certain accounts receivables
which may not be paid in full was USD 1.4 million for the Company
(2023: USD 0.9 million)
 
and nil for the Parent (2023: nil).
 
 
The table below presents the concentration risk for 2024 and
2023:
 
Receivables on 31 December 2024
PARENT COMPANY
CONSOLIDATED
(Amounts in USD 1,000)
USD
% of total
USD
% of total
1 to 5 largest
-
-
29,486
70%
6 to 10 largest
-
-
12,063
29%
Others
-
-
586
1%
Provision for bad debt
-
-1,435
Total accounts receivable
-
-
40,700
100%
Receivables on 31 December 2023
PARENT COMPANY
CONSOLIDATED
(Amounts in USD 1,000)
USD
% of total
USD
% of total
1 to 5 largest
-
-
20,414
47%
6 to 10 largest
-
-
9,408
17%
Others
-
-
12,718
35%
Provision for bad debt
-
-
-914
-
Total accounts receivable
-
-
41,626
100%
Changes in the provision for bad debt can be summarized as follow:
PARENT COMPANY
CONSOLIDATED
(Amounts in USD 1,000)
2024
2023
2024
2023
Provision bad debt
Opening balance 1 January
-
-
914
4,540
Reversal provision previous year
-
-
-149
-4,000
Provision current year
-
-
671
432
Currency translation differences
-
-
-1
-57
Closing balance 31 December
-
-
1,435
914
 
Financial Risk Management Note 2
 
Sea1 Offshore Inc. Annual Report 2024
96
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Trade and receivables
The table below presents an aging analysis of the outstanding receivables at year-end 2024 and 2023. Overdue receivables are
 
monitored
continually by Management. The Management considers the net outstanding amounts to be recoverable.
PARENT COMPANY
CONSOLIDATED
(Amounts in USD 1,000)
USD
% of total
USD
% of total
Aging on 31 December 2024
Not due
-
-
23,924
59%
Due up to 1 month
-
-
14,736
36%
Due 1-4 months
-
-
2,994
7%
Due more than 4 months
-
-
481
1%
Provision for bad debt
-
-
-1,435
-4%
Total accounts receivable
-
-
40,700
100%
(Amounts in USD 1,000)
Aging on 31 December 2023
Not due
-
-
36,618
88%
Due up to 1 month
-
-
4,294
10%
Due 1-4 months
-
-
1,629
4%
Due more than 4 months
-
-
-
-
Provision for bad debt
-
-
-914
-2%
Total accounts receivable
-
-
41,626
100%
The carrying amounts of the Company’s and Parent’s accounts receivable are denominated
 
in the following currencies:
PARENT COMPANY
CONSOLIDATED
(Amounts in USD 1,000)
2024
2023
2024
2023
Currency
USD
-
-
31,172
26,354
NOK
-
-
12
2,565
EUR
-
-
-
617
GBP
-
-
9
7,246
CAD
-
-
999
288
AUD
-
-
4,038
-
BRL
-
-
4,470
4,557
Total accounts receivable
-
-
40,700
41,626
The maximum exposure to credit risk at the reporting date is the carrying value of each class of accounts receivable mentioned above.
 
 
Notes to the accounts
97
Sea1 Offshore Inc. Annual Report 2024
2.4 Cash flow, interest
 
risk and fair value
The Company is financed by debt and equity. If the Company fails to
repay or refinance its loan facilities, additional equity financing may
be required. There can be no assurance that the Company will be
able to repay its debts or extend re-payment schedules through re-
financing of its loan agreements or avoid net cash flow shortfalls
exceeding the Company’s available funding sources or comply with
minimum cash requirements. Further, there can be no assurance
that the Company will be able to raise new equity, or arrange new
borrowing facilities, on favorable terms and at amounts necessary to
conduct its ongoing and future operations, should this be required.
 
The Company is moreover exposed to changes in interest rates,
which may affect the Company’s financial results.
 
These risks are mainly related to the Company’s long-term
borrowings with floating interest rates.
 
Further details of the Company’s borrowings are set out in Note
12.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Company has no significant interest-bearing assets other
than cash and cash-equivalents and therefore the Company’s income
and operating cash flows are substantially independent of changes in
market interest rates. Cash and cash-equivalents are invested
 
for
short maturity periods, generally from one day to three months,
which mitigates some of the potential interest rate risk.
 
Following the restructuring the Company and the Parent
Company is exposed to currency and interest risk. The Company
holds fixed interest for 29% of its interest-bearing debt.
The following sensitivity tables demonstrate the impact on the
Company’s profit before tax
 
and equity from a potential shift in
interest rates, all other variables held constant.
 
CONSOLIDATED
Interest rate risk (IR)
(Amounts in USD 1,000)
-1% movements
+1% movements
31 December 2024
Carrying amount
Profit/(loss)
Equity
Profit/(loss)
Equity
Financial assets
Cash and cash equivalents
68,302
-683
-683
683
683
Impact on financial assets before tax
-683
-683
683
683
Financial liabilities
Borrowings fixed rate
97,908
-
-
-
-
Borrowings floating rate
 
241,108
2,411
2,411
-2,411
-2,411
Impact on financial liabilities before tax
2,411
2,411
-2,411
-2,411
Total increase/decrease before
 
tax
1,728
1,728
-1,728
-1,728
CONSOLIDATED
Interest rate risk (IR)
(Amounts in USD 1,000)
-1% movements
+1% movements
31 December 2023
Carrying amount
Profit/(loss)
Equity
Profit/(loss)
Equity
Financial assets
Cash and cash equivalents
97,325
-973
-973
973
973
Impact on financial assets before tax
-973
-973
973
973
Financial liabilities
Borrowings fixed rate
179,868
-
-
-
-
Borrowings floating rate
 
282,518
2,825
2,825
-2,825
-2,825
Impact on financial liabilities before tax
2,825
2,825
-2,825
-2,825
Total increase/decrease before
 
tax
1,852
1,852
-1,852
-1,852
For more details, see Note 12.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Risk Management Note 2
 
Sea1 Offshore Inc. Annual Report 2024
98
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PARENT COMPANY
Interest rate risk (IR)
(Amounts in USD 1,000)
-1% movements
+1% movements
31 December 2024
Carrying amount
Profit/(loss)
Equity
Profit/(loss)
Equity
Financial assets
Cash and cash equivalents
15,830
-158
-158
158
158
Impact on financial assets before tax
-158
-158
158
158
Impact on financial liabilities before tax
-
-
-
-
Total increase/decrease before
 
tax
-158
-158
158
158
PARENT COMPANY
Interest rate risk (IR)
(Amounts in USD 1,000)
-1% movements
+1% movements
31 December 2023
Carrying amount
Profit/(loss)
Equity
Profit/(loss)
Equity
Financial assets
Cash and cash equivalents
42,303
-423
-423
423
423
Impact on financial assets before tax
-423
-423
423
423
Impact on financial liabilities before tax
-
-
-
-
Total increase/decrease before
 
tax
-423
-423
423
423
The Company’s financial assets are classified into the categories:
assets at fair value through the profit and loss, loans and receivables,
and available for sale. Financial liabilities are classified as liabilities at
fair value through the profit and loss, and other financial liabilities.
For further information about comparison by category, see Note 24.
The Company's following financial instruments are not evaluated
at fair value: accounts receivable, cash and cash equivalents, other
short-term receivables, accounts payable and long-term liabilities
with floating interest.
Because of the short term to maturity, the value of cash and cash
equivalents entered into the Statement of Financial Position is
almost the same as the fair value of these. Accordingly, the values of
accounts receivable and accounts payable are almost the same as
their fair values since they are entered on “normal” conditions.
 
The fair value of the Company’s non-current liabilities subjected
to fixed interest rates is calculated
 
by comparing the Company’s
terms and market terms for liabilities with the same terms to
maturity and credit risk.
 
 
 
 
Notes to the accounts
99
Sea1 Offshore Inc. Annual Report 2024
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The following tables display the book value and the fair value of
financial assets and obligations.
CONSOLIDATED
(Amounts in USD 1,000)
12/31/2024
12/31/2023
Financial assets
Book value
Fair value
Book value
Fair value
CIRR loan deposit
6,879
6,982
13,759
13,687
Long-term receivables
8,303
8,303
31,337
31,337
Accounts receivable
40,700
40,700
41,626
41,626
Other short-term receivables
23,863
23,863
22,917
22,917
Cash and cash equivalents
68,302
68,302
97,325
97,325
Total
 
148,047
148,149
206,963
206,891
Financial liabilities
Borrowings
339,015
332,693
462,387
458,965
CIRR loan
6,879
6,982
13,759
13,687
Other non-current liabilities
17,164
17,164
17,335
17,335
Accounts payable
4,421
4,421
16,996
16,996
Other current liabilities
28,280
28,280
24,639
24,639
Total
 
395,759
389,540
535,115
531,621
PARENT COMPANY
(Amounts in USD 1,000)
12/31/2024
12/31/2023
Financial assets
Book value
Fair value
Book value
Fair value
Long-term receivables
7,741
7,741
88,288
88,288
Other short-term receivables
117,668
117,668
28,418
28,418
Cash and cash equivalents
15,830
15,830
42,303
42,303
Total
 
141,239
141,239
159,009
159,009
Financial liabilities
Accounts payable
33
33
6
6
Other current liabilities
287,680
287,680
46,727
46,727
Total
 
287,713
287,713
46,733
46,733
 
 
Sea1 Offshore Inc. Annual Report 2024
100
Note 3
Critical Accounting Estimates and Judgements
 
IFRS requires management to make estimates and judgments that
affect the reported amounts of assets and liabilities, as well as
revenues and expenses in the financial statements. The final
reported outcomes may deviate from the original estimates.
Certain amounts included in, or that have an effect on, the
accounts and the associated notes require estimation, which in turn
entails that the Company must make assessments related to values
and circumstances that are not known at the point in time when the
accounts are being prepared.
A significant accounting estimate is an estimate that is important
to provide a complete picture of the Company’s financial position,
which at the same time is the result of difficult, subjective and
complex assessments performed by the management. Such
estimates are often uncertain by nature. Management evaluates
such estimates continuously based on historical data and experience,
consultation with external experts, trend analysis and other factors
that are relevant for the individual estimate, including expectations
of future events that are believed to be reasonable under the
circumstances.
Estimates and assumptions that have a significant risk of causing
a material adjustment to the carrying amounts of assets and
liabilities within the next financial year, as well as judgments made
by management, in the process of applying the Company’s
accounting policies, that have the most significant effect on the
amounts recognized in the financial statements, are discussed below.
Valuation of vessels
On the reporting date 31 December 2024, the Company has assessed
for its vessels whether there are any indicators of impairment, or
indicators that past impairments should be reversed. Early signals of
improvement in vessel’s utilization and charter rates could indicate
that vessel values exceed book values for vessels that were impaired
in the past. Impairment indicators include volatile charter rates and
utilization in some segments, and that the quoted market value of
the Company is below book value of equity. If such indicators exist
and the book value exceeds the recoverable amount, the fixed
asset’s fair value is the higher of net selling price and value in use.
Net selling price is normally obtained by valuations from
independent shipbrokers. Brokers’ estimates assume the vessels are
without charter contracts, immediately available for sale in the
market and that a willing seller and a willing buyer exist. The
Company has made an accounting judgement that it will use the
Brokers’ estimate as a reference for recoverable values and use
value in use calculation to calculate fair values.
On 30 June 2024 the company identified indicators of reversal of
past impairment and following a value in use calculation reversal of
past impairment was reversed per 30 June 2024. The Company did
not identify any further indicators of impairment, nor of reversal of
impairment at the reporting date 31 December 2024. Thus, no value
in use was calculated on the reporting date 31 December 2024, but
on 30 June 2024 value in use was calculated by discounting future
cash flows to present value at the balance sheet date. In the value in
use calculation, the first five years are based on the Company’s
market view. A terminal value is calculated by assuming that the
applicable market view for the fifth year applies to the remaining
years of the vessel’s lifetime.
The market for offshore service vessels is expected to gradually
recover from being volatile for several years. For vessels fixed on
firm contracts with a duration in the period from 2025 through 2028,
the assumption is that the firm contract remains unchanged during
the remaining contract period, and that the rate levels will gradually
improve towards 2029. Options for extended charter periods are not
considered in the value-in-use calculations. However, if charter hire
rates for optional periods are expected to be lower than market
rates for the applicable period, this is considered in the value-in-use
calculation. Three scenarios, High, Base and Low, were considered.
The relative weights were estimated based on the segments market
outlook, current employment, and vessel supply- demand balance.
The High scenario was weighted from 10% to 30%, the Base scenario
was weighted from 40% to 60% and the Low scenario was weighted
from 20% to 30%. The vessel charter rates, and utilization are the
key driver in all three scenarios and were estimated for each vessel
for the three scenarios.
In order to assess impairment, or reversal of past impairments,
estimates and assumptions regarding expected cash flows are made
which require considerable judgement. These assumptions are
among other based upon existing contracts, commercial
management judgment about future charter revenue rates, historical
performance, discount rates, class renewal expenses, financial
forecasts and industry trends and conditions.
 
 
 
Notes to the accounts
101
Sea1 Offshore Inc. Annual Report 2024
Valuation of deferred
 
tax benefit
The Company recognizes deferred income tax assets
 
on carried
forward tax losses to the extent there are sufficient estimated
 
future
taxable profits and/or taxable temporary differences
 
against which
the tax losses can be utilized. On the reporting date 31 December
2024, the Company has assessed the valuation of the deferred tax
asset based on forecast.
Note 4
Segment Reporting
The Company identifies its reportable segments and disclose
segment information under IFRS8 Operating Segments which
requires Sea1 Offshore Inc. to identify its segments according to the
organization and reporting structure used by management.
Operating Segments are components of a business that are
evaluated regularly by the chief operating decision maker for the
purpose of assessing performance and allocating resources.
 
The reportable segments are Subsea Vessels, Anchor-Handling
Tug Supply (AHTS) Vessels, Platform
 
Supply Vessels (PSVs), Fast
 
Crew
& Oil Spill Recovery Vessels and Other.
The Company’s chief operating decision maker is the
management board, comprised of the CEO, CFO, CCO, CHRO
 
and
COO. Generally, financial information is required to
 
be disclosed on
the same basis that is used by the chief operating decision maker.
The Company’s operating segments represent separately
 
managed
business areas with unique products serving different markets.
 
The Subsea segment includes 2 Offshore Subsea Construction
Vessels (OSCV), two Well Intervention Vessels
 
(WIV) and of one
Scientific core-drillship at the end of 2024 (2023: 2 OSCVs, excluding
the 2 OSCV vessels sold to Siem, 2 WIVs and 1 Scientific core-drilling
vessel).
 
The ATHS segment includes 5 large AHTS vessels and 1
medium-sized AHTS vessel at the end of 2024 (2023: 5, excluding the
3 AHTS vessels sold to Siem + 1 medium-sized AHTS). The PSV
 
 
 
 
 
 
 
 
segment includes 2 Platform Supply Vessels at the end of 2024
(2023: 2, excluding the 4 PSV vessels sold to Siem). The Fast Crew &
Oil Spill Recovery Vessels consists of 2 Oil-spill Recovery Vessels
 
and
2 smaller fast crew vessels at the end of 2024 (2023: 2 +2). The
number of vessels at year-end 2024 was 17, compared to 26 as per
year-end 2023.
Sea1 Offshore Inc. uses two measures of segment results,
Operating Revenue and Operating Margin.
Intersegment sales and transfers reflect arm’s
 
length prices as if
sold or transferred to third parties at the time of inception of the
internal contract, which may cover several years.
 
Transfers
 
of
business or fixed assets within or between the segments are
reported without recognizing gains or losses. Results of activities not
considered part of Sea1 Offshore Inc.’s
 
main operations as well as
unallocated revenues, expenses, liabilities and assets are reported
together with Other under the caption “Other and eliminations”.
 
The following tables include information about the Company’s
operating segments. Note that the operating revenue and operating
cost for the nine vessels sold has been moved from its original
segment and is now presented under the “Other” segment also for
the comparable figures for 2023. The operating revenues and
operating cost for the sold vessels have been included until transfer
of the vessels 5 July 2024.
 
 
CONSOLIDATED
(Amounts in USD 1,000)
2024
2023
Operating revenue by segments, of which nil intersegment revenue
Subsea Vessels
139,097
137,500
Anchor Handling Tug Supply Vessels
97,190
57,078
Platform Supply Vessels
19,056
14,010
Fast Crew & Oil Spill Recovery Vessels
12,171
14,272
Other/Intercompany elimination
73,311
113,166
Total operating revenue
340,825
336,026
 
Segment reporting
Note 4
Sea1 Offshore Inc. Annual Report 2024
102
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CONSOLIDATED
(Amounts in USD 1,000)
2024
2023
Operating margin by segments
Subsea Vessels
95,144
91,558
Anchor Handling Tug Supply Vessels
50,458
22,647
Platform Supply Vessels
9,595
4,465
Fast Crew & Oil Spill Recovery Vessels
2,447
4,273
Other/Intercompany elimination
32,312
63,844
Total operating margin from
 
segments
189,956
186,787
Administrative expenses
-24,276
-22,301
Total EBITDA
165,680
164,486
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization by segments
Subsea Vessels
29,622
28,231
Anchor Handling Tug Supply Vessels
15,878
12,160
Platform Supply Vessels
3,368
2,501
Fast Crew & Oil Spill Recovery Vessels
2,207
2,730
Other/Intercompany elimination
6,705
22,401
Total Depreciation
 
and amortization by segments
57,780
68,023
Reversal of Impairments/ (Impairment) by segments
Subsea Vessels
13,678
21,600
Anchor Handling Tug Supply Vessels
88,056
-
Platform Supply Vessels
7,098
-
Fast Crew & Oil Spill Recovery Vessels
9,169
-
Other/Intercompany elimination
41,116
45,366
Total Reversal
 
of Impairments/ (Impairment) by segments
159,116
66,966
The reversal of impairment above for the other segment for 2024 is related to the vessels sold to Siem, see further informati
 
on in note 5.
Operating profit by segments
Subsea Vessels
79,199
84,927
Anchor Handling Tug Supply Vessels
122,637
10,487
Platform Supply Vessels
13,325
1,964
Fast Crew & Oil Spill Recovery Vessels
9,409
1,543
Other/Intercompany elimination
66,723
86,809
Total operating profit
 
from segments
291,293
185,730
Administrative expenses
-24,276
-22,301
Other Gain / (Loss)
-25,587
-178
Total Operating profit
241,430
163,251
doc1p104i0
Notes to the accounts
103
Sea1 Offshore Inc. Annual Report 2024
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures by business area for tangible assets
Subsea Vessels
15,518
6,632
Anchor Handling Tug Supply Vessels
2,618
9,451
Platform Supply Vessels
3,117
5,414
Fast Crew & Oil Spill Recovery Vessels
975
915
Assets under construction
19,310
-
Other/Intercompany elimination
11,326
11,079
Total capital expenditures
52,864
33,492
Book value by business area for tangible assets
Subsea Vessels
361,803
362,230
Anchor Handling Tug Supply Vessels
208,240
136,215
Platform Supply Vessels
30,710
31,921
Fast Crew & Oil Spill Recovery Vessels
12,199
6,604
Assets under construction
19,310
-
Other/Intercompany elimination
5,174
309,711
Total book value
637,437
846,680
.
Photo: Craig Roberts
 
 
Sea1 Offshore Inc. Annual Report 2024
104
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 5
Vessels, Equipment
 
and Capitalized Project
 
Cost
Tangible assets
CONSOLIDATED
(Amounts in USD 1,000)
Land and
buildings
Vessels
under con-
struction
Vessels and
equipment
Dry-
docking
Capitalized
project cost
Total
Purchase cost on 1 January 2023
3,560
-
2,137,131
52,645
8,240
2,201,575
Capital expenditure
 
732
-
22,240
10,520
-
33,492
Additions related to leasing
3,407
-
1,317
-
-
4,724
Movement between groups
 
-
-
-38,165
-
-
-38,165
The year's disposal at cost
-
-
-291
-142
-
-433
Effect of exchange rate
 
differences
80
-
9,342
409
-70
9,761
Purchase cost on 31 December 2023
7,778
-
2,131,575
63,432
8,170
2,210,954
Accumulated depreciation on 1 January 2023
-2,818
-
-809,054
-29,267
-6,429
-847,567
Accumulated impairment on 1 January 2023
-
-
-547,279
-
-
-547,279
Movement between groups
 
-
-
38,165
-
-
38,165
The year's depreciation
-526
-
-57,566
-9,659
-273
-68,023
The year's reversal of impairment
-
-
66,966
-
-
66,966
The year's disposal of accumulated depreciation
-
-
42
142
-
184
Effect of exchange rate
 
differences
-65
-
-6,359
-359
64
-6,719
Accumulated depreciation and impairment on 31
December 2023
-3,408
-
-1,315,085
-39,143
-6,637
-1,364,274
Net book value on 31 December 2023
4,369
-
816,490
24,289
1,533
846,680
Purchase cost on 1 January 2024
7,778
-
2,131,575
63,432
8,170
2,210,954
Capital expenditure
-
19,310
25,376
8,178
-
52,864
Movement between groups
-43
-
-4,080
-4,911
-
-9,035
The year's disposal at cost
-1,933
-
-718,513
-26,411
-8,045
-754,902
Effect of exchange rate
 
differences
-385
-
-38,041
-2,247
-125
-40,798
Purchase cost on 31 December 2024
5,417
19,310
1,396,317
38,039
-
1,459,084
Accumulated depreciation on 1 January 2024
-3,408
-
-842,601
-39,143
-6,637
-891,790
Accumulated impairment on 1 January 2024
-
-
-472,484
-
-
-472,484
Movement between groups
 
43
-
4,080
4,894
-
9,017
The year's depreciation
-508
-
-48,759
-8,479
-35
-57,780
Impairment of vessel
-
-
-16,018
-
-
-16,018
The year's reversal of impairment
-
-
175,134
-
-
175,134
The year's disposal of accumulated depreciation
1,922
-
253,187
19,571
6,547
281,227
The year's disposal of accumulated impairment
-
-
124,946
-
-
124,946
Effect of exchange rate
 
differences
240
-
24,482
1,254
125
26,101
Accumulated impairment on 31 December 2024
-
-
-175,699
-
-
-175,699
Accumulated depreciation on 31 December 2024
-1,711
-
-622,335
-21,903
-
-645,948
Net book value on 31 December 2024
3,706
19,310
598,284
16,136
-
637,437
 
 
 
Notes to the accounts
105
Sea1 Offshore Inc. Annual Report 2024
The balance of capitalized project costs relates to specific contracts. The costs
 
are amortized over the term of the specific charter contracts.
 
The vessels are divided into the following components and economical lives:
Component
Percentage of total
Economic life
Hull
27%
30 years
Cargo equipment
17%
30 years
Marine equipment
10%
15 years
Crew equipment
9%
15 years
Engine
18%
30 years
Engine system
6%
30 years
Combined sewerage system
 
13%
30 years
Docking
 
and class renewals
5 years
Equipment
3 years
Sale of vessels
The Company agreed to sell 9 of its vessels (3 AHTS, 4 PSVs and 2
OSCVs) to the previous major shareholder Siem Sustainable Energy
S.a r.l and related
 
companies ("Siem") in exchange for 35.7% of the
Company's shares and USD 117.5 million debt assumption. Siem
resumed risk and reward of the vessels from 1 April 2024. The book
values related to the 9 vessels sold were removed from the value of
Vessels and equipment, and is presented as the period’s disposal of
cost, accumulated depreciation and accumulated impairment as per
31 December 2024 in the table above. A net reversal of impairment
related to these vessels was made per 30 June 2024, see note 4.
Impairment/Reversal of impairment
 
vessels
The Book value on 31 December 2024 of tangible and intangible
assets with finite lives is tested for impairment/reversal of
impairment whenever events or changes in circumstances indicate
that the carrying value may not be recoverable or understated. If
such indicators exist and the book value exceeds the recoverable
amount, the fixed asset’s residual value is the higher of net selling
price and value in use. Net selling price is normally obtained by
valuations from independent shipbrokers. Brokers’
 
estimates assume
the vessels are without charter contracts, immediately available for
sale in the market and that a willing seller and a willing buyer exist.
The value in use is calculated by discounting future cash flows to
present value at the balance sheet date. The same approach has
been applied at testing if impairments that were recognized in
previous periods could be reversed for certain vessels.
 
On 30 June 2024, the Company identified indicators of potential
reversal of past impairments. Indicators were mainly related to
 
the
 
 
quoted market value of the Company which was above book value of
equity. Several market
 
factors that negatively affected the OSV
markets in recent years have been losing momentum, as energy
prices remain at high levels, and the oil companies maintain high
levels of activity in exploration and production. Initiatives within the
offshore renewable energy sector further contribute positively to the
demand side for certain segments of the fleet. The improved
demand side for offshore supply vessels has increased vessel cash
flow. On the vessel supply side, no new-built vessels have entered
the market in the last years, and there are few vessels under
construction affecting the Company’s segments. Based on such
indicators, impairment tests were performed for all OSV vessels.
 
On 30 June 2024 value in use was calculated for the impairment
testing for all vessels. In addition to value in use calculations,
management has obtained brokers’ estimates for all the group’s
vessels from two independent and reputable shipbrokers on 30 June
2024. The obtained broker estimates were primarily used to
compare and test the reasonableness of management’s value in use
calculations. The Company concluded, for the owned vessels, to base
its vessel valuations on a value in use model. For the 9 vessels sold,
the valuation was based on the agreed sales-prices.
 
The Company concluded to recognize reversal of past
impairments for eighteen vessels, including the nine sold vessels.
The Company did not identify any further indicators of
impairment, nor of reversal of impairment at the end of 4Q 2024.
The Company concluded not to recognize any further impairment,
nor any reversal of impairment in the second half of 2024.
 
 
Sea1 Offshore Inc. Annual Report 2024
106
 
 
 
 
Value-in-use (VIU)
VIU is based on the present value of discounted cash flows for each
separate Cash Generating Unit (CGU). Remaining firm charter hire
periods are considered. The first five years are based on the
Company’s market view.
 
A terminal value is calculated by assuming
that the applicable market view for the fifth year applies to the
remaining years of the vessel’s lifetime. Three scenarios have
 
been
considered, and a weighted average of the scenarios has been
calculated.
Discount rate
The discount rate used in the value-in-use calculation per 30 June
2024 is a weighted average cost of capital (WACC)
 
after tax was
9.66% (2023: 9.46%).
Operating expenses
Operational expenses that are directly attributable to the CGU are
based on budget and forecasts with an annual escalation as
applicable. Dry-docking cost related to class renewals and periodic
maintenance costs are included at estimated cost.
Fair value less cost of disposal
FVLCOD (level 3) is the amount that would be obtained from a sale of
the asset in a regular market, less cost of sales, based on the average
of third-party valuation reports from two independent ship brokers.
The Company understands that shipbrokers apply newbuilding price
parity as basis for their appraisals. Newbuilding prices have been
adjusted for building supervision costs and other additional costs,
which results in an estimated delivered cost of a newbuilding with
prompt delivery adjusted for age of each vessel.
 
Climate risk
Management has considered the potential impacts of climate risk
and whether this will have an adverse impact on the future use of
the Company’s vessels. The Company operates world-wide within
the offshore oil and gas sector and the offshore renewable sector.
It’s expected that demand for the Group’s
 
services could increase
due to climate related opportunities. Management does not consider
there is a significant risk that the Company’s vessels will become
obsolete due to climate considerations as they form a key part in the
transition to the provision of sustainable energy. The Company has
assumed that its vessels can be utilized in their assumed technical
lifetime. In a process of transition from oil and gas energy sources,
the Company assumes that these markets may reduce its demand
for the vessels owned and operated by the Company. However,
 
the
Company assumes that a shortfall in vessel demand from oil and gas
related industries will be adequately compensated by increase in
demand from the offshore renewable energy industry.
 
This relates to
vessel utilization and vessels’ charter rates.
 
Sensitivities
Reversal of impairment of USD 159 million relating to 18 vessels was
recognized in 2024. The VIU calculation is mainly affected by changes
in the WACC and freight rate assumptions. Variances
 
in the
assumptions in the VIU model may have significant effects on vessel
valuation estimates. The WACC used was 9.66% (2023: 9.46%). There
are 7 vessels that have booked impairments per 31.12.2024.
A reduction of freight rate assumption of USD 1,000 per day for each
vessel would reduce the DCF value of these 7 vessels by
approximately USD 20 million. An increase in freight rate assumption
of USD 1,000 per day would increase the DCF value of these 7 vessels
by approximately USD 20 million.
 
An increase in WACC of 0.5% would reduce the DCF value of these 7
vessels by approximately USD 5 million. A decrease in WACC of 0.5%
would increase the DCF value of these 7 vessels by approximately
USD 6 million.
 
 
 
 
 
 
 
 
 
Notes to the accounts
107
Sea1 Offshore Inc. Annual Report 2024
Reversal of impairment
(Amounts in USD 1,000)
Vessel
Valuation Method
Jan - Dec 2024 Reversal of
Impairment/ (impairment)
31 Dec 2024
net book value
 
SUBSEA 1
 
VIU
13,678
32,139
 
AHTS 1
 
VIU
16,839
36,184
 
AHTS 2
 
VIU
17,760
35,904
 
AHTS 3
 
VIU
15,728
34,653
 
AHTS 4
 
VIU
22,078
37,478
 
AHTS 5
 
VIU
15,651
34,572
 
PSV 1
 
VIU
1,678
13,703
 
PSV 2
 
VIU
5,420
17,008
 
FC&OSRV 1
 
VIU
9,169
9,512
 
OTHER 1
 
Sales price
-4,080
0
 
OTHER 2
 
Sales price
4,884
0
 
OTHER 3
 
Sales price
4,282
0
 
OTHER 4
 
Sales price
5,822
0
 
OTHER 5
 
Sales price
-5,147
0
 
OTHER 6
 
Sales price
-6,791
0
 
OTHER 7
 
Sales price
14,755
0
 
OTHER 8
Sales price
14,623
0
 
OTHER 9
Sales price
12,768
0
Total
159,116
 
 
 
Sea1 Offshore Inc. Annual Report 2024
108
.
 
 
 
 
 
 
Note 6
Investment in Subsidiaries
Company
Registered office
Ownership and
voting share
Revenue
Net profit
 
(Amounts in USD 1,000)
Sea1 Offshore AS
Kristiansand, Norway
100%
13,551
-593
Sea1 Offshore Invest AS
Kristiansand, Norway
100%
4,600
12,481
Sea1 Offshore Rederi AS
Kristiansand, Norway
100%
129,152
28,908
Sea1 Offshore OSCV AS
Kristiansand, Norway
100%
-
-8
Sea1 Offshore do Brasil S.A.
Rio de Janeiro, Brazil
100%
35,162
-16,790
Sea1 AHTS Pool AS
Kristiansand, Norway
100%
66,838
134,857
Sea1 Offshore Management (US) Inc.
Texas,
 
USA
100%
132
-16
Sea1 Offshore US Holding AS
Kristiansand, Norway
100%
-
-12
ODL AS
Kristiansand, Norway
100%
25,564
17,953
DSND Subsea Ltd
London, England
100%
-
-
Total value recorded
 
in the statement of financial position of the Parent Company
 
 
Sea1 Offshore Inc. purchased the shares in the subsidiary Sea1 AHTS Pool AS owned by a minority shareholder, representing 22%
 
of the shares
in the company in December 2024. Following the transaction, Sea1 Offshore Inc. owns 100% of the shares in Sea1 AHTS Pool AS.
The above companies are owned by the Parent. In addition, the subsidiaries own the following companies:
Company
Registered office
Share and voting rights
Sea1 Offshore Crewing AS
Kristiansand, Norway
100%
Sea1 Offshore Maritime Personnel AS
Kristiansand, Norway
100%
Sea1 Offshore Servicos Maritimos LTDA
Rio de Janeiro, Brazil
100%
Overseas Drilling Ltd
Groningen, The Netherlands
100%
Sea1 Offshore Canada Inc
Dartmouth, Canada
100%
Secunda Holdings LP
St. John's, Canada
100%
Sea1 Offshore Canada LP
Dartmouth, Canada
100%
Sea1 Offshore Australia Pty Ltd
Perth, Australia
100%
Sea1 AHTS Pool Australia PTY LTD
Perth, Australia
100%
Sea1 Offshore Crewing Australia PTY Ltd
Perth, Australia
100%
Sea1 Offshore LLC
Delaware, USA
100%
Siem Real Estate GmbH
Leer, Germany
100%
Aracaju Serviços Auxiliares Ltda and Siem Pilot DA was dissolved in 2024
 
Notes to the accounts
109
Sea1 Offshore Inc. Annual Report 2024
 
 
 
 
 
 
 
 
 
 
 
 
Share capital
Book equity
Cost price
Book value
 
Minority
share of net
profit/(loss)
Minority share of
net equity
Impairments/ (reversal
of impairments) made in
2024
35
7,109
17,518
5,918
-
-
-3,500
898
52,758
48,369
48,369
-
-
-
6,175
373,356
442,042
442,042
-
-
145,394
3
-5
3
3
-
-
-
83,838
-59,047
135,978
-
-
-
-
163
110,834
475,229
122,001
30,191
-
98,500
1
593
1
1
-
-
-
5
150
961
187
-
-
-
4
28,318
12,672
12,672
-
-
-
-
-188
-
-
-
-
-
513,878
1,132,773
631,193
30,191
-
240,394
.
 
 
Sea1 Offshore Inc. Annual Report 2024
110
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 7
Investment in Associated
 
Companies
Figures for associated companies included in the consolidated accounts based on the equity method of accounting.
31 December 2024
COMPANY NAME
PR Tracer
Offshore ANS
KS Big
 
Orange XVIII
Total
(Amounts in USD 1,000)
Income Statement
Operating expenses
-148
-4
-151
Operating profit
-148
-4
-151
Net financial items
24
1
25
Net profit
-124
-2
-126
Sea1 Offshore´s share of net profit
-51
-1
-52
Result from associated companies
-51
-1
-52
As the companies have been dissolved during 2024, there are no assets, liabilities or equity remaining in the companies per 31 December
2024.
31 December 2024
COMPANY NAME
KS Big
Orange XVIII
KS Big Orange
XVIII
Total
(Amounts in USD 1,000)
Specification of changes net book value in Sea1 Offshore's accounts
Net book value as of 1 January
414
38
452
This year's share of net profit/(loss)
-51
-1
-52
Dividends
-324
-33
-357
Effect of exchange rate
 
differences
-38
-4
-42
Net book value as of 31 December
-
-
-
Siem Offshore Ghana Ltd remained dormant in 2024 and has been excluded from the figures. Assets and liabilities are considered immaterial
to the Company's consolidated accounts.
31 December 2023
COMPANY NAME
PR Tracer
Offshore ANS
KS Big Orange
XVIII
Total
(Amounts in USD 1,000)
Income Statement
Operating revenue
3,538
217
3,755
Operating expenses
-2,668
-20
-2,689
Depreciation and Amortisation
-
518
518
Operating profit
870
714
1,585
Net financial items
310
65
375
Net profit
1,180
779
1,959
Notes to the accounts
111
Sea1 Offshore Inc. Annual Report 2024
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sea1 Offshore´s share of net profit
488
322
810
Adjustments consolidated accounts
-
-260
-260
Result from associated companies
488
62
550
Statement of financial position
Current assets
4
1
5
Cash
1,219
93
1,312
Total assets
1,223
94
1,317
Equity
1,002
92
1,094
Current liabilities
222
2
224
Total equity and liabilities
1,223
94
1,317
Sea1 Offshore's share of booked equity
414
38
452
Added/reduced in the period
Adj. IFRS and fair value in excess of book value for vessel and goodwill as of 31 December
-
-
-
Net book value in Sea1 Offshore as of 31 December
414
38
452
31 December 2023
COMPANY NAME
PR Tracer
Offshore ANS
KS Big Orange
XVIII
Total
(Amounts in USD 1,000)
Specification of changes net book value in Sea1 Offshore's accounts
Net book value as of 1 January
1,784
898
2,682
This year's share of net profit/(loss)
488
62
550
This year's share of other comprehensive income
-
-
-
Dividends
-1,824
-894
-2,718
Effect of exchange rate
 
differences
-36
-27
-63
Net book value as of 31 December
414
38
452
Of which:
Amortisation of fair value in excess of book value for vessels and goodwill
Effect of exchange rate
 
differences
-
-
-
 
Fair value in excess of book value for vessels and goodwill as of 31 December 2023
-
-
-
COMPANY NAME
Registered office
Consolidation
Owner
interest
Voting rights
Paid in
capital
Issues, not paid
in capital
PR Tracer Offshore ANS
Kristiansand, Norway
Equity accounting
41.33%
41.33%
1,633
-
KS Big Orange XVIII
Kristiansand, Norway
Equity accounting
41.33%
41.33%
8
5
Total
1,640
5
.
 
 
 
Sea1 Offshore Inc. Annual Report 2024
112
.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 8
Pension Costs and Obligations
CONSOLIDATED
(Amounts in USD 1,000)
2024
2023
Pension cost recognized in the income statement
Present value of current years benefit earned
667
1,245
Interest expense
192
255
Expected return on plan assets
-260
-229
Administration cost
16
17
Social contribution
66
152
Impact of curtailment/settlement
 
-1,251
-208
Net periodic pension cost (see Note 17)
-569
1,231
The development in the defined benefit obligation
At 1 January
9,787
8,534
Present value of current years benefit earned
667
1,245
Interest expense
192
255
Partly change of pension plan
-4,279
-
Payroll tax of employer contribution, assets
-166
-202
Benefits paid
-65
-57
Remeasurements loss/(gain)
-386
325
Exchange differences
-598
-313
At 31 December
5,152
9,787
The development in the fair value of plan assets
At 1 January
8,439
7,545
Expected return on plan assets
260
229
Partly change of pension plan
-3,045
-
Employer's contribution
1,347
1,631
Payroll tax of employer contribution, assets
-166
-202
Benefits paid
-65
-57
Remeasurements loss/(gain)
-547
-438
Exchange differences
-647
-270
At 31 December
5,575
8,439
Net pension liability
-423
1,348
 
 
Notes to the accounts
113
Sea1 Offshore Inc. Annual Report 2024
 
 
 
 
 
 
 
 
 
 
 
Pension liability
CONSOLIDATED
(Amounts in USD 1,000)
2024
2023
Present value of funded obligations
5,152
9,787
Fair value of plan assets
-5,575
-8,439
Present value of funded obligations
-423
1,348
Financial assumptions
Discount rate
3.30%
3.10%
Expected return on funds
3.30%
3.10%
Expected wage adjustment
3.50%
3.50%
Adjustment of the basic National Insurance amount
3.25%
3.25%
Expected pension increase
1.90%
1.80%
Number of employees in defined benefit scheme
22
61
A large share of the employees has chosen to change the pension plan into a defined contribution plan. The effect of this is reflected in the
line "Partly change of pension plan" above.
The amounts above are only related to the defined benefit plan. Details regarding the defined contribution scheme can be found in note 17.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 9
Receivables
 
PARENT COMPANY
CONSOLIDATED
12/31/2024
12/31/2023
(Amounts in USD 1,000)
12/31/2024
12/31/2023
Long-term receivables
-
-
Deposit related to legal dispute in Brazil
 
2,622
2,861
7,741
88,288
Intercompany receivables
-
-
-
-
Receivable related to sale of "Siem Marlin" (1)
-
19,962
-
-
Prepaid guarantee commission (2)
5,108
7,313
-
-
Other long-term receivables
573
1,201
7,741
88,288
Total long-term receivables
8,303
31,337
12/31/2024
12/31/2023
Other short-term receivables
12/31/2024
12/31/2023
-
-
Prepaid expenses
5,122
5,220
-
-
Unbilled revenue
5,672
7,378
-
-
Outstanding insurance claims (3)
4,353
2,502
-
-
Prepaid income taxes and other taxes
1,295
2,013
-
-
VAT
 
600
-44
117,586
28,366
Intercompany receivables
-
-
82
52
Other short-term receivables
6,822
5,847
117,668
28,418
Total other short-term
 
receivables
23,863
22,917
(1) Total receivables related
 
to the sale of "Siem Marlin" in 2019 amounts to USD 25 million. This was paid in August 2024.
(2) Prepaid guarantee commission relates to Siem Helix vessels facilities.
(3) Outstanding insurance claims refer to vessel breakdown expenses qualifying for insurance reclaim.
 
The amount is net of own deductibles.
 
 
 
 
Sea1 Offshore Inc. Annual Report 2024
114
.
Note 10
Restricted Cash
 
USD 7.6 million of the Company's cash balance at year-end were restricted funds of which USD 2.2 million was for tax withholdings and USD
5.4 million represented deposits for bank guarantees and secured loans.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 11
Taxes
CONSOLIDATED
(Amounts in USD 1,000)
2024
2023
Temporary differences
Deferred tax
Time frame
Participation in limited liability companies
Long
9,671
2,979
Operating assets
Long
184,509
53,975
Pension funds/obligations
Long
-1,208
-958
Other long-term differences
Long
15,086
530
Tax loss carried forward
Long
-780,876
-1,041,334
Net temporary differences as of December 31
-572,818
-984,807
Temporary differences
 
not included in basis for deferred tax
calculation
-447,132
-859,417
Basis for deferred tax (tax asset)
-125,686
-125,390
Deferred tax (tax asset) Norway
-27,651
-27,586
Deferred tax (tax asset)
-27,651
-27,586
Deferred tax (asset) recognized in statement
 
of financial position as of
31 December
Deferred tax asset
 
-27,651
-27,586
Net deferred tax (tax asset) Norway
-27,651
-27,586
Deferred tax assets are recognized as non-current assets
 
as it is probable through prospective earnings that it can be utilized.
 
The Company is subject to taxes in several jurisdictions, where significant judgment is required in calculating the tax provision
 
for the
Company. There are several
 
transactions for which the ultimate tax cost is uncertain and for which the Company makes
 
provisions based on
an assessment of internal estimates, tax treaties and tax regulations in countries of operation and appropriate
 
external advice. Where the final
tax outcome of these matters is different
 
from the amounts that were initially recorded, such difference will impact the tax charge in the
period in which the outcome is determined.
 
The Company seeks to optimize its tax structure to minimize withholding taxes
 
when operating vessels abroad, avoiding double taxation, and
minimizing corporate tax paid by making optimal use of the shipping taxation rules that apply.
 
It is, however, a challenging task to optimize
taxation.
 
 
 
Notes to the accounts
115
Sea1 Offshore Inc. Annual Report 2024
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total tax
 
liabilities
CONSOLIDATED
(Amounts in USD 1,000)
12/31/2024
12/31/2023
Non-current tax liabilities falling due after 1 year
-
92
Payable taxes falling due within 1 year
1,999
2,228
Tax liabilities
1,999
2,320
Tax expense
CONSOLIDATED
(Amounts in USD 1,000)
2024
2023
Taxes
 
payable
1,371
399
Change in deferred tax asset /liability
17
-19,426
Total
1,388
-19,027
There is no tax amount related to the items under Other Comprehensive Income.
Tax expense
PARENT COMPANY
(Amounts in USD 1,000)
2024
2023
Change in deferred tax asset/liabilities
578
2,805
Tax effect
 
from group contribution
 
2,458
5,540
Tax expense on ordinary result
 
11,137
12
Total
14,173
8,357
Tax liability
PARENT COMPANY
(Amounts in USD 1,000)
12/31/2024
12/31/2023
Non-current tax liabilities falling due after 1 year
3,693
3,114
Tax liabilities
3,693
3,114
 
 
 
Sea1 Offshore Inc. Annual Report 2024
116
.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 12
Borrowings
Carrying amount - excluding CIRR
CONSOLIDATED
(Amounts in USD 1,000)
12/31/2024
12/31/2023
Secured
Current
Non-current
Total
Current
Non-current
 
Total
Fixed rates bank loans
18,986
78,922
97,908
82,672
97,196
179,868
Floating rates bank Loans
47,732
195,417
243,149
130,834
146,638
277,472
Total secured borrowings
66,718
274,338
341,056
213,506
243,835
457,341
Unsecured
Current
Non-current
Total
Current
Non-current
 
Total
Loans from related parties (1)
-
-
-
-
7,830
7,830
Total unsecured borrowings
-
-
-
-
7,830
7,830
Total borrowings
66,718
274,338
341,056
213,506
251,664
465,170
Fees and expenses
-978
-1,063
-2,041
-981
-1,803
-2,784
Total borrowings incl. fees
65,740
273,275
339,015
212,525
249,861
462,387
Fair value - excluding CIRR
CONSOLIDATED
(Amounts in USD 1,000)
12/31/2024
12/31/2023
Secured
Current
Non-current
Total
Current
Non-current
 
Total
Fixed rates bank loans
18,986
72,599
91,585
82,672
88,728
171,400
Floating rates bank Loans
47,732
195,417
243,149
130,834
146,638
277,472
Total secured borrowings
66,718
268,016
334,734
213,506
235,367
448,873
Unsecured
Current
Non-current
Total
Current
Non-current
 
Total
Loans from related parties (1)
-
-
-
-
7,830
7,830
Total unsecured borrowings
-
-
-
-
7,830
7,830
Total borrowings
66,718
268,016
334,734
213,506
243,197
456,703
Fees and expenses
-978
-1,063
-2,041
-981
-1,803
-2,784
Total
 
65,740
266,952
332,693
212,525
241,394
453,919
The Company has a portfolio of bank loans secured with mortgage in vessels. The creditors and guarantors are in general first
 
class
commercial banks and state-owned financial institutions with ratings on or above BBB- and AAA. In July 2024, Sea1 Offshore completed the
refinancing of certain parts of its debt. Certain restrictions and undertakings imposed on the Company in the 2021 restructuring were
removed, enhancing the Company's flexibility with regards to financing, investments and distributions. Financial covenants in the new facilities
include, on a consolidated level, minimum free cash of the higher of USD 35m and 10% of net interest bearing debt, minimum book equity
ratio of 20%, minimum fleet adjusted equity ratio of 30% and positive working capital.
 
The Company has complied with its financial covenants
during 2024.
 
(1) In December 2024, the Company purchased the shares in Sea1 AHTS Pool AS owned by a minority shareholder. Following the share
purchase, a shareholder loan from the minority shareholder was repaid.
 
Notes to the accounts
117
Sea1 Offshore Inc. Annual Report 2024
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Instalments falling due over the next 5 years - excluding CIRR
CONSOLIDATED
(Amounts in USD 1,000)
Mortgage debt
Other interest
bearing debt
Total
2025
65,740
-
65,740
2026
62,485
-
62,485
2027
60,183
-
60,183
2028
102,192
-
102,192
2029
11,031
-
11,031
Thereafter
37,384
-
37,384
Total
339,015
-
339,015
The Company and the Parent Company are in compliance with their financial covenants on 31 December 2024.
 
PARENT COMPANY
CIRR arrangements
CONSOLIDATED
12/31/2024
12/31/2023
(Amounts in USD 1,000)
12/31/2024
12/31/2023
-
-
Total CIRR deposit
6,879
13,759
-
-
CIRR loan drawn
6,879
13,759
-
-
Net Commitment
-
-
The CIRR loan drawn from the Norwegian Export Credit Agency is placed as a corresponding deposit in the bank as financial security for the
loan drawn, as the related vessel is sold.
Net debt
CONSOLIDATED
(Amounts in USD 1,000)
12/31/2024
12/31/2023
Cash and cash equivalents
68,302
97,325
Borrowings, repayable within one year
-65,740
-212,525
Borrowings, repayable after one year
-273,275
-249,861
Net debt
-270,713
-365,062
Cash and cash equivalents
68,302
97,325
Gross debt - fixed interest rates
-97,908
-179,868
Gross debt - floating interest rates
-241,108
-282,518
Net debt
-270,713
-365,062
 
 
 
Sea1 Offshore Inc. Annual Report 2024
118
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings
CONSOLIDATED
(Amounts in USD 1,000)
Borrowings as at 1 January 2023
570,981
Lease liability 1 January 2023
-
Lease payments
-1,847
New leases
5,463
Repayment of borrowings
-112,145
Drawn amount PIK interest and fees
3,405
New loans related parties
3,552
Changes in accrued interest
-1,462
Foreign exchange adjustments
-593
Other, amortization
 
740
Borrowings and lease liability at 31 December 2023
468,095
Lease payments
-993
Repayment of borrowings
-264,866
Drawn amount PIK interest and fees
166
New loans related parties
-7,830
New loan facilities
150,000
Changes in accrued interest
-2,611
Foreign exchange adjustments
1,388
Other, amortization
 
743
Borrowings and lease liability at 31 December 2024
344,091
Borrowings and lease liability
CONSOLIDATED
(Amounts in USD 1,000)
12/31/2024
12/31/2023
Borrowings repayable within one year
65,740
212,525
Borrowings repayable after one year
273,275
249,861
Lease liability repayable within one year
894
918
Lease liability repayable after one year
4,182
4,791
Total
344,091
468,095
 
 
 
Notes to the accounts
119
Sea1 Offshore Inc. Annual Report 2024
.
 
 
 
 
 
 
 
 
 
 
Note 13
Other Current Liabilities and Other Non
 
-Current Provision
PARENT COMPANY
CONSOLIDATED
12/31/2024
12/31/2023
(Amounts in USD 1,000)
12/31/2024
12/31/2023
-
-
Social security tax, etc.
4,608
3,563
-
-
Unearned income
185
3,158
-
-
Other accrued cost, mainly regarding operating
expenses vessels 1)
14,970
12,433
-
-
Current lease liability
894
918
286,898
46,497
Intercompany liabilities 2)
-
-
782
230
Accrued salaries, holiday pay, payroll tax
 
and other
7,624
4,566
287,680
46,727
Total other current liabilities
28,280
24,639
1)
Other accrued cost includes accrued commission and accruals for purchase orders.
2)
Intercompany liabilities relate to cash-pool arrangements
 
 
 
 
 
 
 
 
 
 
PARENT COMPANY
CONSOLIDATED
12/31/2024
12/31/2023
(Amounts in USD 1,000)
12/31/2024
12/31/2023
-
-
Provision for possible legal claims in Brazil
2,329
3,151
-
-
Accrual for recognized penalty claim in Brazil
 
12,399
15,859
-
-
Total other current provision
14,728
19,010
An accrual at USD 15 million has been recorded for possible and recognized legal claims related to charter contracts
 
and claimes related to
former employees in Brazil. Due to long process-time in Brazil, this is reclassified to Long Term
 
Liability.
 
 
 
Sea1 Offshore Inc. Annual Report 2024
120
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 14
Related Party
 
Transactions
The Company’s largest shareholder Kistefos AS, with a holding of 51.83 % as the ultimate parent company,
 
and it's subsidiaries, are defined as
related parties. The previous owner, Siem Sustainable S.a.r.l.
 
and it's parent Siem Industries and it's related companies are also defined as
related parties for the period before the transaction took place 5 July 2024.
The Company has been charged by Siem Industries S.A. for an annual fee of USD 202K for 2024 (2023: USD 202 K). The fee is the remuneration
for the services provided by the previous Chairman of the Board and cost related to office and administration in the Cayman Islands.
Details related to transactions, loans and remuneration to the Executive Management
 
and the Board of Directors are set out in Note 17. The
Chairman Christen Sveaas is also the Chairman of Kistefos AS. For the Parent, all subsidiaries listed in Note 6 are
 
also defined as related
parties.
 
Kistefos AS holds an 80.1% interest in Viking Supply Ships AB. Viking Supply Ships AB owns the Viking-vessels, but Sea1 Offshore AS operates
the vessels through a Management agreement.
For other related parties, the following transactions were carried out:
Sale of services
CONSOLIDATED
(Amounts in USD 1,000)
2024
2023
Service to entity where director has ownership
10,878
20,030
Total
10,878
20,030
The service is provided to companies in which the Chairman has an interest. Kristian Siem is the Chairman of and controls Siem Industries S.A.
Siem Industries holds an interest in Subsea 7. Sea1 Offshore Rederi AS, 100% owned by the Company and Sea1 Offshore LLC, 100% owned by
the Company, have chartered vessels to
 
Subsea 7 during 2024 and 2023. Christen Sveaas is the Chairman of Viking Supply Ships AB, and the
Company has 5 of the 6 Viking AHTS vessels on Management at the end of 2024.
The amounts for 2024 and 2023 also include management services and crew service to subsidiaries of Siem Industries S.A. and to Subsea 7.
Purchase of service
CONSOLIDATED
(Amounts in USD 1,000)
2024
2023
Service from entity where director has ownership
7,313
372
Total
7,313
372
Services purchased from related parties for 2024 were mainly cost for corporate
 
management services and Board fees. Service from entity
where director has ownership consist of Board fees from Siem Industries S.A., management fees from
 
Siem Capital UK Ltd and Siem Kapital AS,
all three 100% controlled by Siem Industries S.A, and related to the period before the transaction of 5 July 2024. In addition to Bareboat hire
of a Viking vessel for a period of 5 month since Viking Supply Ship AB is owned by Kistefos AS by 80.1%.
These transactions were at arm’s length.
Balance sheet items following purchase and sale of service
CONSOLIDATED
(Amounts in USD 1,000)
2024
2023
Accounts receivable
3,496
2,026
Accounts payable
4,292
500
 
Notes to the accounts
121
Sea1 Offshore Inc. Annual Report 2024
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-current liability to related parties
CONSOLIDATED
(Amounts in USD 1,000)
2024
2023
At 1 January
7,830
4,278
Drawings
1,092
3,109
Instalments
-9,665
-
Interest expenses
743
443
At 31 December
-
7,830
Non-current liability
The Company held a long-term credit facility in Sea1 AHTS Pool AS, who had drawn a shareholder's loan from its 22% shareholder Singa Star
PTE LTD. Interest
 
charged has been added to the principal loan. The loan was fully repaid by the Sea1 Offshore Inc to Singa Star following the
purchase of shares from Singa Star PTE LTD
 
in December 2024.
Sale of service
PARENT COMPANY
(Amounts in USD 1,000)
2024
2023
Service to subsidiaries
665
961
Total
665
961
Purchase of service
PARENT COMPANY
(Amounts in USD 1,000)
2024
2023
Service from subsidiaries
4,387
2,959
Service from associates
202
250
Total
4,589
3,209
Sales to subsidiaries and associates consists of guarantee commissions to Sea1 Offshore Rederi AS and Sea1 Offshore Canada LP.
Service purchased from subsidiaries consists of administrative and corporate services provided by Sea1 Offshore
 
AS. Service purchased from
associates consists of payment for annual fee for remuneration for
 
the services of the previous Chairman of the Board and cost related to
office and administration in the Cayman Islands.
All terms used for above transactions are at arm’s
 
length.
 
Sea1 Offshore Inc. Annual Report 2024
122
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year-end balance sheet items arising from sales and purchases
PARENT COMPANY
(Amounts in USD 1,000)
12/31/2024
12/31/2023
Receivables from related parties
Subsidiaries
117,586
927
Total
117,586
927
Payables to related parties
Subsidiaries
286,898
115
Total
286,898
115
Non-current loan to subsidiaries
PARENT COMPANY
(Amounts in USD 1,000)
12/31/2024
12/31/2023
At 1 January
88,288
10,397
Drawings
13,573
11,125
Instalments
-117,768
-
Interest charged
6,738
8,268
Provision for bad debt
16,916
58,497
Exchange rate variations
-6
2
At 31 December
7,741
88,288
The long-term loan to subsidiaries on 31 December 2024 is with Sea1 Offshore do Brasil SA and Sea1 AHTS Pool AS. The provision for the
outstanding amount for the long-term loan to Sea1 Offshore do Brasil SA is USD 24,228. The provision for the long-term loan to Sea1 AHTS
Pool AS has been reversed in 2024.
All loans are at market terms of interest.
 
Non-current liability to related parties
PARENT COMPANY
(Amounts in USD 1,000)
12/31/2024
12/31/2023
At 1 January
-
467
Instalments
-
-467
At 31 December
-
-
The amount above was related to a previous revolving credit facility from Siem Industries S.A.
 
effective from 2021, no longer valid. The credit
facility was at market terms of interest.
 
 
 
 
 
 
 
Notes to the accounts
123
Sea1 Offshore Inc. Annual Report 2024
.
 
 
 
 
 
 
 
 
 
 
Note 15
Guarantees
PARENT COMPANY
CONSOLIDATED
12/31/2024
12/31/2023
(Amounts in USD 1,000)
12/31/2024
12/31/2023
-
-
Guarantees related to tax-disputes, Brazil
-
686
339,015
444,213
Guarantees for debt in subsidiaries
-
-
339,015
444,213
Total guarantees
-
686
Guarantees related to disputes and ongoing tax-cases
 
have been raised per request from Brazilian tax-authorities.
 
 
 
 
 
 
 
 
Note 16
Operating Expenses
PARENT COMPANY
CONSOLIDATED
2024
2023
(Amounts in USD 1,000)
2024
2023
-
-
Vessel crew expenses
92,242
97,654
-
-
Other vessel operating expenses
58,627
51,585
5,308
3,908
General and administration
24,276
22,301
5,308
3,908
Total operating expenses
175,144
171,540
 
 
 
 
 
 
 
 
 
Note 17
Salaries and Wages, Number
 
of own workforce
Personnel expenses (1)
CONSOLIDATED
(Amounts in USD 1,000)
2024
2023
Salaries and wages
85,891
83,865
Government grants - net wages arrangement in Norway
-3,912
-4,053
Payroll tax
11,212
9,500
Pension cost, defined contribution plan
2,067
1,634
Pension costs, defined benefit plan, see Note 8
-569
1,231
Other benefit
4,963
5,338
Total personnel expenses
99,651
97,516
(1) Personnel expenses include vessel crew expenses and part of general and administrative expenses, see Note 16.
 
 
 
Sea1 Offshore Inc. Annual Report 2024
124
 
 
 
 
 
 
 
 
 
 
 
 
Government grants is a special Norwegian seamen payroll and tax refund scheme given to Norwegian shipping companies.
 
The average number of own workforce in the Company was 1,311 for 2024 (2023: 1,208), including onshore and offshore workforce.
 
There are
no employees in the Parent.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Payroll registered to the executive
 
management
(Amounts in USD 1,000)
2024
2023
Salary and other short term compensation
1,388
983
Total
1,388
983
Employees included in the above payroll in 2024 were two (2023: two).
Corporate management salaries and other benefits
(Amounts in USD 1,000)
2024
Salary paid
Pension
premium
Other benefits
Share options
held
Number of shares
owned
CEO Bernt Omdal
760
38
3
-
150,000
CFO Vidar Jerstad
552
33
3
-
150,000
Total
1,312
71
5
-
300,000
(Amounts in USD 1,000)
2023
Salary paid
Pension
premium
Other benefits
Share options
held
Number of shares
owned
CEO Bernt Omdal
528
33
2
4,000
-
CFO Vidar Jerstad
390
28
2
-
-
Total
918
61
5
4,000
-
The Board of Directors of Sea1 Offshore Inc. has previously authorized the award of two programs
 
of Share Options to key employees of the
Company. The first option program
 
expired in 2023, the second option program expired in 2024. The total cost for the two programs
 
is zero
for 2024 and 2023. A long-term incentive plan (“LTIP”) established for the management team of the Company.
 
Under the LTIP,
 
members of
the management team have purchased a total of 400,000 shares from the Company.
 
Shares purchased under the LTIP will be subject to a 3-
year lock-up obligation. Following expiry of the lock-up Period, the Company has an obligation
 
to make an annual offer to purchase the shares
from the management.
The Remuneration paid and accrued to the Board of Directors in 2024 was USD 334K (2023: USD 338K). Each of the current Directors are
 
paid
USD 56K annually (plus employers’ contribution), or pro rata in relation to service part of the year.
Directors and Officers Liability Insurance (DOLI) is for the fiscal year 2024 placed with AIG Europe Insurance. The DOLI insurance provides
financial protection for the directors and officers of the Company in the event that they are being sued in conjunction with the performance of
their duties as they relate to the Company. The insurance coverage
 
includes the directors’ and officers’ personal legal liabilities, including
defense - and legal cost. The cover also includes employees in managerial positions.
 
Auditor's remuneration
PARENT COMPANY
CONSOLIDATED
2024
2023
(Amounts in USD 1,000)
2024
2023
125
86
Audit Fee
417
334
40
-
Audit Fee, Other
56
6
15
-
Tax and legal assistance
34
128
20
49
Other consultants, fees
98
164
200
135
Total auditor's remuneration
604
632
 
 
Notes to the accounts
125
Sea1 Offshore Inc. Annual Report 2024
.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 18
Leases
The Company has entered into various operating leases for office premises, office machines and communication satellite equipment
 
for the
vessels. The lease period for the lease agreements varies and most of the leases contain an option for extension. The interest rates
 
in the
calculation of net present values are in the range of 9%-13% depending on the base currency, the nature
 
of the lease and the length of the
leasing agreement.
 
Low value leases and leases with maturity of up to one year from inception are considered insignificant to the financial statements.
There are no leases for the Parent Company.
Consolidated Statements of Financial Position:
(Amounts in USD 1,000)
CONSOLIDATED
Right of use assets at 01.01.2024
5,680
The year's depreciation
-760
Effect of exchange rate
 
differences
-145
Right of use assets at 31.12.2024
4,776
The balance sheet includes the following amounts relating to leases:
(Amounts in USD 1,000)
12/31/2024
12/31/2023
Right of use assets*
Land and buildings
3,711
4,363
Vessels and equipment
1,064
1,317
Total Right of use assets
4,776
5,680
*included in the line item "Vessels and equipment" in the Consolidated Statements of Financial Position.
(Amounts in USD 1,000)
CONSOLIDATED
Lease liability at 01.01.2024
5,709
Lease payments
-993
Interest cost
516
Effect of exchange rate
 
differences
-149
Lease liability at 31.12.2024
5,082
(Amounts in USD 1,000)
12/31/2024
12/31/2023
Lease liabilities**
Current
894
918
Non-Current
4,187
4,791
Total Lease liabilities
5,082
5,709
**included in the line item "other liabilities" for current and non-current liabilities respectively in the Consolidated Statements of Financial
Position.
 
 
Sea1 Offshore Inc. Annual Report 2024
126
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Leases as Lessor of vessels:
The total contract backlog as per 31 December 2024 amounts to USD 840 million This relates to in total 15 Time Charter contracts
 
and 2 Bare
Boat contracts. The total contract backlog per 31 December 2023 has been modified to present the backlog related to the sold vessels under
the "Other" segment below.
 
Backlog per 31 December 2023 was USD 235 million for the vessels today owned by the Company.
The contract backlog includes firm contracts only, any
 
optional periods have been excluded. For the Time Charter contracts, the service
element related to operations of the vessels (crewing, maintenance etc.) is also included in the amounts presented below.
There is no Contract Backlog for the Parent Company.
The contract backlog relates to fiscal years and per vessel segments:
12/31/2024
CONSOLIDATED
(Amounts in USD 1,000)
2025
2026
2027 onwards
Total
Vessel Segment
Subsea Vessels
136
119
432
687
Anchor Handling Tug Supply Vessels
59
9
-
68
Platform Supply Vessels
17
14
6
37
Fast Crew & Oil Spill Recovery Vessels
18
11
19
48
Total
229
154
457
840
12/31/2023
CONSOLIDATED
(Amounts in USD 1,000)
2024
2025
2026 onwards
Total
Vessel Segment
Subsea Vessels
102
38
37
177
Anchor Handling Tug Supply Vessels
36
1
-
37
Platform Supply Vessels
8
-
-
8
Fast Crew & Oil Spill Recovery Vessels
7
6
-
13
Other
55
27
3
85
Total
208
71
41
320
 
 
 
Notes to the accounts
127
Sea1 Offshore Inc. Annual Report 2024
.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 19
Financial Items
PARENT COMPANY
CONSOLIDATED
2024
2023
(Amounts in USD 1,000)
2024
2023
Financial income
3,517
3,170
Interest income
 
8,668
11,028
17,625
27,373
Interest income intercompany
-
-
55,933
-
Dividend
 
-
-
-
28,315
Other financial income
100
25
77,076
58,858
Total financial income
8,768
11,053
Financial expenses
-548
-852
Interest expenses
-29,157
-34,209
-17,290
-17,333
Interest expenses intercompany
-
-
-
-
Reversal of impairment on Seller's credit "Siem Marlin"
2,773
5,771
257,570
165,097
Reversal /(Impairment) of shares and receivables from
subsidiaries
-
-
-219
-46
Other financial expenses
-1,680
-1,274
239,513
146,865
Total financial expenses
-28,064
-29,711
Other financial items
-
-
Hedge accounting recycling
 
-
-1,329
2,836
-221
Net currency gain/(loss)
-17,745
10,292
2,836
-221
Total currency gain/(loss)
-17,745
8,963
319,425
205,502
Net Financial Items
-37,041
-9,695
The weighted average cost of debt for the Company was approximately
 
7.0% (2023: 6.7%) at 31 December.
 
 
 
 
 
 
Sea1 Offshore Inc. Annual Report 2024
128
 
 
 
 
 
 
 
 
 
 
 
Note 20
Earnings/(loss) per Share
CONSOLIDATED
(Amounts in USD 1,000)
2024
2023
Weighted average number of shares outstanding (1,000)
196,897
238,852
Weighted average number of shares diluted (1,000)
196,897
238,852
Result attributable to shareholders
172,758
174,515
Earnings/(loss) per share attributable to equity shareholders
0.88
0.73
Earnings/(loss) per share diluted attributable to equity shareholders
0.88
0.73
 
 
 
 
 
 
 
 
 
 
 
Note 21
Other Gain/(Loss) on Sale of Assets
PARENT COMPANY
CONSOLIDATED
2024
2023
(Amounts in USD 1,000)
2024
2023
-906
-
Gain/(loss) on sale of assets, net
-25,587
-178
-906
-
Total
-25,587
-178
2024
The net loss for the Company on sale of assets of USD 25.6 million is mainly related to the Profit share agreement (USD 27.2 million) in relation
to the sale of 9 vessels to Siem Sustainable S.a.r.l., partly offset
 
by gain for sale of consumables and equipment onboard (USD 1.8 million). As
per the sales agreement with Siem, Siem is entitled to full economic effect of these vessels from 1 April 2024 untill transfer of vessels 5 July
2025, plus a profit split on the 3 transferred AHTS vessels until 31 December 2024. This was partly offset by 0.1 million in Gain from sold assets
Aracaju Base in Brazil.
 
The net loss for the Parent, is mainly due to Legal and other cost in relation to the sale of the 9 vessels.
2023
The net loss for the Company on sale of assets of USD 0.2 million is related to the sale of the FCSV "Siem Caetes" in Brazil.
 
 
Notes to the accounts
129
Sea1 Offshore Inc. Annual Report 2024
.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 22
Listing of the 20 Largest
 
Shareholders
as of 31 December 2024
Shareholder
Number of shares
Owner interest
Kistefos AS
79,585,160
51.83%
Songa Capital AS
16,101,252
10.49%
Magnus Leonard Roth
6,789,168
4.42%
Midelfart Capital AS
5,302,907
3.45%
Torstein
 
I. Tvenge
5,000,000
3.26%
Clearstream Banking S.A.
3,641,553
2.37%
Citibank (Switzerland) AG
3,373,728
2.20%
Caceis Bank
3,250,112
2.12%
MP Pensjon PK
1,877,071
1.22%
Patronia AS
1,015,566
0.66%
Ace Crown International Limited
955,654
0.62%
J.P.
 
Morgan SE
929,709
0.61%
Tejø Invest
 
AS
700,000
0.46%
Nordnet Livsforsikring AS
673,052
0.44%
Six Sis AG
669,472
0.44%
Interactive Brokers LLC
606,746
0.40%
The Northern Trust Comp, London Br
500,000
0.33%
J.P.
 
Morgan SE
491,001
0.32%
HSBC Bank Plc.
429,384
0.28%
The Bank of New York Mellon SA/NV
418,572
0.27%
Total 20 largest
 
shareholders
132,310,107
86.17%
Other shareholders
21,233,627
13.83%
Total number of outstanding shares
153,543,734
100.00%
Kistefos AS is the main shareholder and the ultimate parent company of Sea1 Offshore Inc and is owned by Mr Christen Sveaas
 
who is the
Chairman of the Company.
 
 
 
 
Sea1 Offshore Inc. Annual Report 2024
130
Note 23
Subsequent Events
January 2025:
-
On the back of solid results, a strong balance sheet and a significant backlog, a special dividend payment of NOK 7 per share was
made to shareholders on 22 January 2025.
-
Refinanced debt related to its two well intervention vessels. New credit facilities from
 
commercial banks in a total amount of USD
250 million have been agreed, divided between a term loan and a revolving credit facility. Existing
 
debt in a total amount of USD 102
million was repaid.
 
-
Management for the nine sold vessels will be gradually transferred to a new manager during the period from January to April 2025.
February 2025:
 
-
The Company decided not to proceed with the contemplated bond issue started late January with a series of fixed income investor
meetings.
-
Signed revenue sharing agreement with Viking Supply Ship AB for five AHTS’ owned by Sea1 AHTS Pool AS and six AHTS’ owned by
Viking Supply Ship AB.
March 2025:
-
Entered into shipbuilding contracts with Cosco Shipping for two vessels, in addition to the two vessels contracted
 
in November
2024. The vessels are based on a similar design as the first two vessels and will have capabilities to serve both oil & gas and
renewable markets. The scheduled delivery for the vessels is from third quarter 2027 to fourth quarter 2027.
 
 
Notes to the accounts
131
Sea1 Offshore Inc. Annual Report 2024
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note 24
Financial Instruments by Category
Below is a comparison by category for carrying amounts and fair values of all of the Company’s financial instruments.
31 December 2024
(Amounts in USD 1,000)
Assets at fair value through the
profit and loss amortized cost
Total
Assets as per statement of financial position
Derivative financial instruments
233
233
Accounts receivable
39,242
39,242
Other short term receivables
12,387
12,387
CIRR Loan deposits
6,879
6,879
Long term receivables
3,195
3,195
Cash and cash equivalents
68,302
68,302
Total
130,239
130,239
With the exception of derivative financial instruments,
 
the group only has financial assets and liabilities that are accounted for at amortized
cost, where the carrying amount is considered a reasonable approximation of fair value. Prepayments
 
do not qualify as a financial instrument
and are not included in above amount. Excluded prepayments amount to USD 18.7 million. Also see Note 9.
31 December 2024
CONSOLIDATED
(Amounts in USD 1,000)
Financial liabilities at
amortized cost
Total
Liabilities as per statement of financial position
Accounts payable
4,421
4,421
Borrowings
339,015
339,015
CIRR Loans
6,879
6,879
Other non-current liabilities
 
17,164
17,164
Other non-current provision
14,728
14,728
Other current liabilities
28,280
28,280
Tax payable
 
1,999
1,999
Adjustments for liabilities that do not qualify as a financial instrument (1)
-28,563
-28,563
Total
383,923
383,923
(1) Non-financial liabilities do not qualify as a financial instrument and are not included in above amount. Excluded liabilities amount to USD
28,563 consisting of USD 5,779 in Tax liabilities, USD - 423 in Pension Liability,
 
USD 4,608 in Social Security Payable, USD 1,998 in Tax
 
payable,
USD 185 in Unearned Income, USD 1,688 in Accrued Interest and USD 14,728 in provision for potential legal claims.
 
See Note 13 for
information about Social Security Payable and Unearned Income.
 
Sea1 Offshore Inc. Annual Report 2024
132
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
31 December 2023
CONSOLIDATED
(Amounts in USD 1,000)
Assets at fair value through the
profit and loss amortized cost
Total
Assets as per statement of financial position
Accounts receivable
41,626
41,626
Other short term receivables
8,306
8,306
CIRR Loan deposits
13,759
13,759
Long term receivables
24,024
24,024
Cash and cash equivalents
97,325
97,325
Total
185,039
185,039
Prepayments do not qualify as a financial instrument and are not included in above amount. Excluded prepayments amount to USD 21.5
million,
 
see Note 9.
31 December 2023
CONSOLIDATED
(Amounts in USD 1,000)
Financial liabilities at
amortized cost
Total
Liabilities as per statement of financial position
Accounts payable
16,996
16,996
Borrowings
462,387
462,387
CIRR Loans
13,759
13,759
Other non-current liabilities
 
17,335
17,335
Other non-current provision
19,010
19,010
Other current liabilities
24,639
24,639
Tax liabilities
92
92
Pension liabilities
1,348
1,348
Tax payable
 
2,228
2,228
Adjustments for liabilities that do not qualify as a financial instrument (1)
-37,882
-37,882
Total
519,911
519,911
(1) Non-financial liabilities do not qualify as a financial instrument and are not included in above amount. Excluded liabilities amount to USD
37,882 consisting of USD 3,758 in Tax liabilities, USD 1,348 in Pension Liability,
 
USD 3,563 in Social Security Payable, USD 2,228 in Tax
 
payable,
USD 3,158 in Unearned Income, USD 4,816 in Accrued Interest and USD 19,010 in provision for potential legal claims.
 
See Note 13 for
information about Social Security Payable and Unearned Income.
31 December 2024
PARENT COMPANY
(Amounts in USD 1,000)
Financial assets
at amortized cost
Total
Assets as per statement of financial position
Trade and other instruments (1)
6,202
6,202
Cash and cash equivalents
15,830
15,830
Total
22,032
22,032
(1) Prepayments do not qualify as a financial instrument and are not included in above amount. Excluded prepayments amount to USD zero.
See Note 9.
 
 
Notes to the accounts
133
Sea1 Offshore Inc. Annual Report 2024
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
31 December 2024
PARENT COMPANY
(Amounts in USD 1,000)
Financial liabilities at
amortized cost
Total
Liabilities as per statement of financial position
Accounts payable
33
33
Adjustments for liabilities that do not qualify as a financial instrument (1)
-170
-170
Other current liabilities
287,680
287,680
Total
287,543
287,543
(1) Non-financial liabilities do not qualify as a financial instrument and are not included in above amount. Excluded liabilities amount to USD
170 consisting of provisions.
31 December 2023
PARENT COMPANY
(Amounts in USD 1,000)
Financial assets
at amortized cost
Total
Assets as per statement of financial position
Trade and other instruments (1)
88,236
88,236
Cash and cash equivalents
42,303
42,303
Total
130,539
130,539
(1) Prepayments do not qualify as a financial instrument and are not included in above amount. Excluded prepayments amount to USD zero.
See Note 9.
31 December 2023
PARENT COMPANY
(Amounts in USD 1,000)
Financial liabilities at
amortized cost
Total
Liabilities as per statement of financial position
Accounts payable
6
6
Adjustments for liabilities that do not qualify as a financial instrument (1)
-261
-261
Other current liabilities
46,727
46,727
Total
46,472
46,472
(1) Non-financial liabilities do not qualify as a financial instrument and are not included in above amount. Excluded liabilities amount to USD
260 consisting of provisions.
.
 
 
 
 
 
 
 
 
 
 
Note 25
Inventories
PARENT COMPANY
CONSOLIDATED
12/31/2024
12/31/2023
(Amounts in USD 1,000)
12/31/2024
12/31/2023
-
-
Fuel
1,031
2,199
-
-
Spareparts
7,903
7,876
-
-
Obsolescence provision
-3,590
-4,787
-
-
Total inventories
5,344
5,288
The valuation of the inventory is based on first in, first out principle (FIFO). Spareparts are related to
 
critical parts with long lead time.
 
 
 
 
 
 
 
Sea1 Offshore Inc. Annual Report 2024
134
Corporate Governance
Statement of Policy
 
on Corporate Governance
The principles for corporate governance adopted by the Company are based on the
“Norwegian Recommendation for Corporate Governance” issued on 14 October 2021.
As a company incorporated in the Cayman Islands, Sea1
 
Offshore Inc. is an exempted company duly incorporated under the
laws of the Cayman Islands and subject to Cayman Islands’ laws and
regulations with respect to corporate governance. Cayman Islands
corporate law is to a great extent based on English Law.
 
In addition,
due to the Company’s listing on the Oslo Stock Exchange, certain
aspects of Norwegian Securities Law apply to the Company and there
is a requirement to adhere to the Norwegian Code of Practice for
Corporate Governance. The Norwegian Code of Practice for
Corporate Governance is publicly available at www.nues.no in both
Norwegian and English languages. Due to new provisions
implemented in the Norwegian Accounting Act, compliance with the
regulations for Corporate Governance reporting is now a legal
requirement provided that it does not conflict with the Cayman
Islands laws and regulations. The Company endeavours to maintain
high standards of corporate governance and is committed to
ensuring that all shareholders of the Company are treated equally,
and the same information is communicated to all shareholders at the
same time.
Corporate Governance is subject to annual assessment and
review by the Board of Directors.
 
The Board of Directors has reviewed this statement. It is the
opinion of the Board of Directors that the Company complies with
the Norwegian Code of Practice for Corporate Governance.
 
This statement is structured in accordance with The Norwegian
Code of Practice for Corporate Governance.
 
Business
Cayman Islands laws and regulation do not require the objects clause
of the Companies Memorandum and Articles of Association to be
clearly defined. The Company has, however, adopted clear objectives
and strategies for its business.
 
Sea1 Offshore aims to grow the company within offshore support
vessels, both organically and through combination with other
operators, in order to achieve economies of scale and a stronger
presence in the market.
 
Sea1 Offshore aims to become a preferred supplier of marine
services to the offshore energy industry and in the offshore
renewable energy sector,
 
based on quality and reliability, and to
provide cost-efficient solutions to its customers by understanding
their operations and by applying high class technology and
experience.
The Company builds its business around a motivated and skilled
workforce with the appropriate technical solutions. This creates
sustainable value for all shareholders. Reference
 
is made to the
Board of Directors report for detailed information.
Equity and Dividends
 
The priorities for the use of Company funds are determined by the
Board of Directors and with recommendations from the
 
 
doc1p136i0
 
 
 
135
Sea1 Offshore Inc. Annual Report 2024
Management, considering existing conditions and arrangements. At
present, priorities for the use of funds in order of importance are
vessels operations and maintenance, repayment of debt, investment
opportunities in the business and the return of capital to the
shareholders in form of share buy-back or dividends.
The Board’s mandate to increase the Company’s
 
share capital is
limited only to the extent of the authorized share capital of the
Company with certain pre-emption rights for shareholders and in
accordance with the Company’s Memorandum and Articles of
Association which complies with Cayman Islands Law.
 
Under the Articles of Association, the Board can issue new
shares, convertible bonds or warrants at any time within the limits of
the authorized capital without the consent of the General Meeting,
but with pre-emption rights for shareholders. A General Meeting has
further authorized the Board to issue new shares without pre-
emption rights to all shareholders up to a limit of 50% of Sea1
Offshore’ shares at the time the authorization was given. The
authority gives the Board flexibility to finance investments,
acquisitions, and other business combinations on short notice
through the issue of shares or certain other equity instruments in the
Company. Furthermore, the Board considers the granting of a new
standing authority at the time of holding an Annual General Meeting
rather than convening an Extraordinary General Meeting at some
future time to be in the best interests of the Company,
 
as this will
result in cost savings and more effective time management for both
the Company’s senior management and its Shareholders.
The Company’s authorized capital is USD 300,000,000 divided on
300,000,000 shares, each with a nominal value of USD 1.00. Per 31
December 2023, the Company had issued 238,852,052 shares.
Following the sale of the 9 vessels to Siem, the Company received
85,307,737 shares. These shares were cancelled with immediate
effect. Following the cancellation of another 581 single shares
without ownership, the Company has an issued share capital of USD
153,543,734 divided into 153,543,734 shares, each with a par value
of USD 1. There are 146,456,266 authorized, but unissued shares
that can be issued by the Board.
Equal Treatment
 
of Shareholders, Freely Tradable
 
Shares
and Transactions
 
with Related Parties
The Company is committed to ensuring that all shareholders of the
Company are treated equally and all the issued shares in Sea1
Offshore, at nominal value USD 1.00 each, are freely tradable and
carry equal rights with no restrictions on voting.
Kistefos AS, which owns 51.83% of the Company, is the ultimate
parent company with Chairman Christen Sveaas on the Board of
Directors. The previous owner,
 
Siem Sustainable S.a.r.l.
 
and it's
parent Siem Industries and it's related companies are also defined as
related parties for the period before the transaction took place 5 July
2024. The Company paid an annual fee to Siem Industries S.A. as
compensation for directorships, provision of an office and presence
in the Cayman Islands and other services. The fee is adopted by the
Annual General Meeting based on a recommendation from the
independent Board Members. Related party transactions are
disclosed in the notes to the accounts.
Freely Negotiable Shares
All the shares in the Company carry equal rights and are freely
negotiable. The shares are traded according to normal market
practice and no special limitations on transactions have been laid
down in the Articles of Association.
General Meetings
The Annual General Meeting of the Company will be held in London,
UK on 25 April 2025, at 13:00 UK local time and Shareholders can be
represented by proxy.
 
Notices of general meetings and related
documents are made available to shareholders at the latest 16 days
prior to meeting date. Notice of attendance by proxy is to be
deposited at the offices of Nordea Bank Abp, filial I Norge, Issuer
Services, PO Box 1166 Sentrum, 0107 Oslo, Norway, e-mail:
nis@nordea.com, marked for the attention of The Secretary,
 
Sea1
Offshore AS, not less than 48 hours prior to the stated time of the
Annual General Meeting. Shareholders are given the opportunity to
vote on the election of board members.
Nomination Committee
The appointment of a nomination committee is not a requirement
under Cayman Islands Law. However,
 
the Board appointed a
Nomination Committee, represented by three Board members.
Board of Directors; Composition and
 
Independence
In the nominations to the Board of Directors, the Board consults with
the Company’s major shareholders and ensures that the Board is
constituted by Directors with the necessary expertise and capacity.
 
 
 
 
 
Sea1 Offshore Inc. Annual Report 2024
136
There is no requirement under Cayman Islands Law for the Company
to establish a corporate assembly.
Each Board member is elected for a term of two years,
 
or such
shorter term as shall be specified in the ordinary resolution pursuant
to which the Director shall be appointed. Representatives of the
Executive Management are not members of the Company’s Board of
Directors.
The Board of Directors as a group has extensive experience in
areas which are important to Sea1 Offshore, including offshore
services, international shipping, ship broking, finance and corporate
governance and restructuring.
Work of the Board of Directors
The Board monitors the performance of management through
regular meetings and reporting. The Company has a Compensation
Committee, a Nomination Committee,
 
and an Audit Committee.
The Compensation Committee consists of three Directors. The
mandate of the committee is to review and approve the
compensation of the CEO and any bonuses to all executive
personnel. Reference is also made to Note 17 to the Accounts,
Remuneration of the Executive Management.
 
The Nomination Committee consists of two Directors. The
Nomination Committee shall actively be seeking and evaluating
individuals qualified to become Directors of the Company and
nominate candidates to the Board of Directors.
The Audit Committee consists of two Directors. The composition
of the committee meets the requirements of the Norwegian Code of
Practice for Corporate Governance as regards independence. The
committee’s mandate can be summarized as follows:
 
●
Ascertain that the internal and external accounting reporting
process are organized appropriately and carried out efficiently and
are of high professional quality.
●
Monitor and assess the quality of the statutory audit of the
Company’s financial statements.
●
Ensure the independence of the external auditor, including any
additional services provided by the external auditor.
Risk Management and Internal Control
Internal control
A prerequisite for the Company’s system
 
of decentralized
responsibility is that the activities in every part of the Company meet
general financial and non-financial requirements and are carried out
in accordance with the Company’s common norms and values. The
executive management of each subsidiary is responsible for risk
management and internal control in the subsidiary with a view to
ensuring 1) optimizing of business opportunities, 2) targeted, safe,
high-quality and cost-effective operations, 3) reliable financial
reporting, 4) compliance with current legislation and regulations and
5) operations in accordance with the Company’s governing
documents, including ethical, environmental and social responsibility
standards. The Company’s risk management system is fundamental
to the achievement of these goals.
Financial reporting process
The Company prepares and presents its financial statements in
accordance with current IAS/IFRS rules. Financial information from
subsidiaries is received each month in a reporting package in
standard format accommodated necessary information for preparing
the consolidated financial statement for the Company.
 
The reporting
from the subsidiaries is extended at the year-end reporting process
to meet various requirements for supplementary information. There
are established routines to check the financial data in the received
reporting packages to ensure the best quality for the consolidated
figures for the Company.
Training and further development of accounting experience
within the Company is provided locally by participating on various
external courses on a regular basis.
Remuneration of the Board of Directors
The remuneration of the Board members reflects
 
their experience
and responsibilities and is adopted by the Annual General Meeting
based on the recommendation from the Board. The Board members
do not have share options or profit-based remuneration.
The responsibility statement of the Board of Directors in this
report and the notes to the accounts include information about the
remuneration of the Board of Directors.
Remuneration of the Executive
 
Management
 
The Company has a Compensation Committee, which reviews and
approves the compensation of the CEO and the bonuses to all
executive personnel. The Articles of Association of the Company
permit the Board to approve the granting of share options to
employees. Two long-term share option programs for key
 
employees
of the Company were introduced in 2013 and 2014. No options have
been declared. These programs expired in 2023 and 2024. A long-
 
 
 
 
137
Sea1 Offshore Inc. Annual Report 2024
term incentive plan (“LTIP”) established for the management team of
the Company. Under the LTIP,
 
members of the management team
have purchased a total of 400,000 shares from the Company.
 
Shares
purchased under the LTIP will be subject to a 3-year lock-up
obligation. The remuneration of the CEO and the share option
scheme are disclosed in the notes to the accounts.
Information and Communications
The Company has a policy of treating all its shareholders and other
market participants equally, and communicates
 
relevant and
objective information on significant developments which impact the
Company in a timely manner.
 
The Company also seeks to ensure that its accounting and
financial reporting are to the standards of our investors, and the
Company presents its financial statements in accordance with the
International Financial Reporting Standards (IFRS). The Audit
Committee of the Board of Directors monitors the Company’s
reporting on behalf of the Board.
 
Notices to the Oslo Stock Exchange and placements of notices
and other information, including quarterly and annual reports, can
be found on the Company’s website (www.s
 
ea1offshore.com). The
financial calendar for 2025 is presented on the Company’s website
under “Investors”.
Take
 
-overs
 
The shares in the Company are freely tradable and the Articles of
Association of the Company does not hold specific defence
mechanisms against take-over situations. In a take-over
 
situation,
the Board of Directors will comply with relevant legislation.
 
Auditor
The Auditor of the Company is elected at the Annual General
Meeting, which also approves its remuneration. Details of the
Company’s remuneration of the external auditor are given in the
notes to the accounts.
 
The Auditor reports to the Audit Committee twice a year at a
minimum, but more often if necessary. During the second half of the
year, the external auditor presents
 
to the Audit Committee his
assessment of risks, internal controls, risk areas and improvement
potential in control systems and his audit plan for the following year.
The second report to the Audit Committee is the presentation of the
Year-End Audit. The external auditor presents a summary of the
audit process, including comments on audited internal control
procedures and key issues in the financial reporting.
 
The Audit Committee also receives an annual independence
reporting from the external auditor,
 
confirming the external
auditor’s independence with respect to the Company, within the
meaning of the Norwegian Act on Auditing and Auditors. The
confirmation also includes services delivered to the Company other
than mandatory audit.
 
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Fleet overview
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Sea1 Offshore Inc. Annual Report 2024
Offshore Subsea Construction
 
Vessel (OSCV) & Multipurpose field & ROV
 
Support Vessel (MRSV)
Sea1 Dorado
Sea1 Spearfish
Built
 
2009
2014
Design
 
MT 6017 MK II
STX OSCV 03
Dp Class
 
2
2
LOA
 
93.60 m
120.80 m
Breadth
 
19.70 m
23.00 m
Draught
 
6.30 m
6.60 m
Dwt
 
4.500 t
5.000 t
Accommodation
 
68
110
Cargo Deck Area
 
1046 m2
1,300 m2
Crane
100 t Offshore/Subsea crane
1 X 250 t AHC, 3,000 m
ROV Moonpool
-
7.2 X 7.2 m
Ownership
100%
100%
Well Intervention Vessels
 
(WIV)
Siem Helix 1
Siem Helix 2
Built
2016
2016
Design
Salt 307 WIV
Salt 307 WIV
Dp Class
3
3
LOA
158.65 m
157.60 m
Breadth
31.00 m
31.00 m
Draught
8.50 m
8.50 m
Dwt
12500 t
12500 t
Accommodation
150
150
BHP
36000
35000
Ownership
100%
100%
Scientific Core Drilling Vessel
Joides Resolution
Type
Scientific Core Drilling Vessel
(SCDV)
Ownership
100%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
doc1p149i3 doc1p149i1 doc1p149i7 doc1p149i5 doc1p149i4 doc1p149i2 doc1p149i0 doc1p149i8 doc1p149i6
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148
Anchor Handling Tug Supply
 
Vessels (AHTS)
 
 
 
Sea1 Amethyst
Sea1 Emerald
Sea1 Sapphire
Sea1 Aquamarine
Sea1 Ruby
Avalon Sea
Built
 
2011
2009
2010
2010
2010
2016
Design
 
VS 491 CD
VS 491 CD
VS 491 CD
VS 491 CD
VS 490 CD
UT 782 WP
Dp Class
 
2
2
2
2
2
2
LOA
 
91.00 m
91.00 m
91.00 m
91.00 m
91.00 m
87.30 m
Breadth
 
22.00 m
22.00 m
22.00 m
22.00 m
22.00 m
20.00 m
Draught
 
7.95 m
7.95 m
7.95 m
7.95 m
7.95 m
7.09 m
Dwt
 
3800 T
3800 T
3800 T
3800 T
3800 T
4650 T
Accommodation
 
60
60
60
60
60
51
Cargo Deck Area
 
800 m2
800 m
2
800 m2
800 m2
800 m2
 
660 m2
BHP
 
28000
28000
28000
28000
28000
15440
Bollard Pull
297 Te
281 Te
301 Te
284 Te
310 Te
150 Te
Platform Supply Vessels
(PSV)
Siem Atlas
Siem Giant
Built
 
2013
2014
Design
 
STX PSV 4700
STX PSV 4700
Dp Class
 
2
2
LOA
 
 
87.90 m
87.90 m
Breadth
 
19.00 m
19.00 m
Draught
 
 
6.60m
6.60 m
Dwt
 
 
4700 T
4,700 T
Accommodation
 
34
34
Cargo Deck Area
 
1000 m2 usable
1000 m2 usable
Ownership
 
100%
100%
Fast Crew & Oil Spill Recovery
Vessels
Brazil – Fleet of 4 vessels
Type
OSRV/FCS
Ownership
100%
doc1p150i0
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North Sea
-
Brage Viking (Management)
-
Loke Viking (Management)
-
Magne Viking (Management)
-
Njord Viking (Management)
-
Odin Viking (Management)
Canada
-
Avalon Sea
Kristiansand Lay-up
-
Joides Resolution
South America
-
Siem Helix 1
-
Siem Helix 2
-
Siem Maragogi
-
Siem Marataizes
-
Siem Giant
-
Siem Atlas
-
Sea1 Dorado
-
Sea1 Ruby
-
Sea1 Spearfish
-
Siem Piata (Bareboat)
-
Siem Pendotiba (Bareboat)
149
Sea1 Offshore Inc. Annual Report 2024
Geographical
footprint
Sea1 Offshore offices
●
Kristiansand (Norway)
●
Rio de Janeiro, Macaé (Brazil)
●
Houston (USA)
●
Perth (Australia)
●
St. John´s, Halifax (Canada)
●
Accra (Ghana)
 
doc1p151i0
 
 
 
 
 
SeA / Australia
-
Sea1 Amethyst
-
Sea1 Aquamarine
-
Sea1 Sapphire
-
Sea1 Emerald
-
Andreas Viking (Management)
Sea1 Offshore Inc. Annual Report 2024
150
Total
 
own workforce
1,385
Vessels in operations
17
Subsea Vessels:
5
Anchor Handling Tug Supply Vessels:
6
Platform Supply Vessels:
2
Fast Crew & Oil Spill Recovery
 
Vessels:
4
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151
Sea1 Offshore Inc. Annual Report 2024
This is
Sea1
Offshore
 
Sea1 Offshore owns a
modern fleet of offshore
support vessels, equipped to
meet demands from clients
and the harshest
environments.
Sea1 Offshore had 17 vessels owned in operation at year-end 2024.
 
By end March 2025, the total fleet comprised of 17 vessels, including the
following owned vessels: two Offshore Subsea Construction Vessels
(OSCVs), two Well-Intervention Vessels
 
(WIVs), one Scientific Core
Drilling vessel, six Anchor Handling, Tug and Supply vessels (AHTS), two
Platform Supply Vessels (PSVs) and four
 
Fast crew and Oil Spill Recovery
vessels. The fleet provides a broad spectrum of services offered by a
highly experienced and competent crew with a strong focus on Health,
Safety, Environment
 
and Quality within the offshore oil and gas and the
offshore renewable energy industries.
The Company’s vision is to become the leading provider and the
most attractive employer offering marine services to the offshore energy
service industry. The Company shall deliver quality and reliable services
in a timely manner by executing cost-efficient, safe and environmentally
friendly solutions developed in active collaboration and cooperation
with our clients.
Sea1 Offshore commenced operations with effect from 1 July 2005.
 
The Company is registered in the Cayman Islands and is listed on the
Oslo Stock Exchange (OSE Symbol: SEA1). The Company’s headquarter is
located in Kristiansand, Norway and additional subsidiary offices are
located in Brazil, Canada, Cayman Islands, Australia, USA and Ghana. The
Company is tax resident in Norway.
 
Photo: Sea1 Offshore
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sea1 Offshore Inc. Annual Report 2024
152
Our Values
We continuously work to make the values a part of
the daily life of the Company, in particular in
training of leaders throughout the organization.
The values are established to support our present
and future business.
Caring
We encourage team spirit and knowledge sharing.
We strive to perform our daily work correctly,
safely and without causing damage to people,
environment and equipment.
Competitive
We behave in a pro-active manner and we are
innovative in our way of thinking. Continuous
improvement is our key to success.
Committed
We are driven by integrity.
 
We step up and take
charge to fulfil given promises.
340825
336026
274306
254493
244843
2024
2023
2022
2021
2020
Amounts in USD 1,000
Revenue
165680
164486
103776
100585
82259
2024
2023
2022
2021
2020
Amounts in USD 1,000
EBITDA
1385
1236
1179
1021
1042
2024
2023
2022
2021
2020
Employees
 
per 31.12.2024
 
153
Sea1 Offshore Inc. Annual Report 2024
Responsibility Statement
We confirm, to the best of our knowledge that the financial
statements for the period 1 January to 31 December 2024 have been
prepared in accordance with current applicable accounting
standards, and give a true and fair view of the assets, liabilities,
financial position and profit or loss of the entity and the group taken
as a whole. We also confirm that the Board of Directors’ Report
includes a true and fair review of the development and performance
of the business and the position of the entity and the group,
together with a description of the principal risks and uncertainties
facing the entity and the group.
 
4 April 2025
Christen Sveaas
Chairman
(Sign.)
Ørjan Svanevik
Director
(Sign.)
 
Celina Midelfart
 
Director
(Sign.)
Fredrik Platou
Director
(Sign.)
 
Bernt Omdal
Chief Executive Officer
(Sign.)
 
 
 
 
 
 
 
Sea1 Offshore Inc. Annual Report 2024
154
B
oard of Directors
The Company has a Board of four
 
Directors. Members
 
of the Company’s
management are not members
 
of the Board, but the Company’s
management does attend
 
Board meetings.
Christen Sveaas (born 1956), Board Member
Mr. Sveaas
 
is Executive Chairman and owner of Kistefos AS, a leading
Norwegian investment company with a large and diversified
investment portfolio. He has held several board positions including
Treschow-Fritzøe AS, Stolt-Nielsen SA, Orkla ASA,
SkipsKredittforeningen AS, Vestenfjelske
 
Bykreditt AS, Tschudi &
Eitzen Shipping AS, Scorpion Drilling Ltd., Southwestern Offshore
Corp. and he has served as senior advisor to EQT, Sweden.
 
Mr.
Sveaas is the Founder of the Kistefos Museum, and a named
benefactor of the Metropolitan Museum of Art as well as a founding
member of its International Council, and member of the museum’s
European Visiting Committee.
 
Mr. Sveaas
 
holds his Lic. Oec. HSG
degree from the University of St. Gallen, Switzerland. Mr.
 
Sveaas is a
Norwegian citizen.
Ørjan Svanevik (born 1966), Board Member
Mr. Svanevik
 
has broad operational experience as former CEO of
Arendals Fossekompani, Director and COO in Seatankers
Management, Head of M&A Aker ASA, Chief Operating Officer
Kværner ASA, Head of Business Development Aker Solutions ASA and
Strategy Director at Arkwright. Svanevik is also the Chair of the Board
of Mowi ASA and a board member in NorgesGruppen ASA,
NorgesGruppen Finans Holding AS, Western Bulk and Paratus Energy
Service. He has formerly served as chair of Volue ASA, Enrx AS,
Archer Ltd, North Atlantic Drilling and Kleven Verft.
Celina Midelfart (born 1973), Board Member
Ms. Midelfart is a private investor,
 
owner and executive chairman of
Midelfart Capital AS. In her early career she was the third generation
CEO of the family business Midelfart AS. She was previously a
partner at Magnipartners Ltd, working actively in the offshore drilling
and LNG space. She has since 2015 held larger shareholding positions
in various listed offshore oil, service and supply companies. She is
currently a board member and 10% owner of the Swedish Consumer
Finance Bank, Avida AB, and a member of the Board of Trustees at
Oslo International School. She previously served on the board of the
world largest fish farming company,
 
Mowi AS, and the Swedish
health and beauty care company, Midsona AB. She holds a degree in
economics and finance from London School of Economics, and Stern
School of Business NY. Ms. Midelfart
 
is a Norwegian citizen.
Fredrik Platou (born 1984), Board Member
Fredrik Platou is the CEO of the Blystad Group, a family office
managing assets within the shipping, real estate and public/private
investments universe. He has been with the Blystad Group since
2006, holding numerous executive positions and board directorships
across industries, representing the Blystad Group. These include
roles at OHT ASA / Seaway 7 ASA, Odfjell Oceanwind AS and Songa
Container AS. Mr.
 
Platou holds a BSc in Economics and Business
Administration from the Norwegian School of Economics (NHH).
Norwegian citizen.
 
 
 
 
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155
Sea1 Offshore Inc. Annual Report 2024
Financial Calendar 2025
Sea1 Offshore Inc. will release financial figures on the following dates in 2025:
Q1 2025
Wednesday 30 April
Q2 2025
Friday 15 August
Q3 2025
Friday 31 October
The Annual General Meeting of the Company will be held on Tuesday 25 April 2025
Photo: C. Beyssier
 
 
 
 
Sea1 Offshore Inc. Annual Report 2024
156
Alternative Performance Measurement
 
(APM) and other definitions
The Company has identified APMs that are consistently applied for
the reporting periods. The APMs are supplementary to the Financial
Statements that are disclosed in compliance with IFRS. The APMs are
disclosed to give a broader understanding of the operations and
associated risk of the Company.
EBITDA margin
 
– EBITDA (Earnings before interest, taxes,
depreciation and amortization, previously referred to as operating
margin) is the net of operating revenue and operating expenses. For
2024 operating revenues USD 340,825 less operating expenses at
USD 175,144 equals EBITDA at USD 165,680 The Company considers
the EBITDA to be a key number when analyzing the fleets operating
performance and the margin that can be applied to the finance of
capital expenditures, debt service and other cash disbursements.
 
EBITDA percentage
 
– EBITDA Margin, % is the nominal EBITDA
calculated as a percentage of operating revenue. For 2024 the
EBITDA at USD 165,680 equals 49% of the operating revenue at USD
340,825. The EBITDA percentage is used to compare, period by
period, the development in relative EBITDA from operations. The
EBITDA-% is also used for comparing segments’ relative
performance.
Operating margin
 
– Operating margin is the EBITDA before
administrative expenses. For 2024 EBITDA USD 165,680 adjusted for
General administration expenses at USD 24,276 equals operating
margin at USD 189,956. The Company considers the Operating
margin to be a key number when analyzing the fleets operating
performance and the margin that can be applied to the finance of
capital expenditures, debt service and other cash disbursements.
 
Equity ratio
– Equity ratio is Total
 
Equity (including Non-controlling
interest) relative to Total
 
Equity and Liabilities.
OTHER DEFINTIONS:
Contract backlog
 
– the total, nominal value of future revenues from
firm contracts, excluding optional periods. The contract backlog is
categorized per year,
 
and reflects coming years’ operating revenues
that are considered firm following contracts agreed with clients.
Utilization
 
– vessels’ effective time on-hire relative to total time
available in the reporting period, excluding vessels time in lay-up.
The utilization is reflecting the time that a vessel, or the fleet, has
been on hire with clients. Zero utilization is reported when a vessel is
off-hire caused by technical issues or when idle, awaiting
employment.
Capital expenditure
 
– gross capital expenditure related to tangible
assets at acquisitions, upgrades, class renewals (dry-docking) and
major periodic maintenance.
Earnings per share
 
– Earnings attributable to the shareholders in the
parent divided by weighted average outstanding number of shares.
Comprehensive income per share
 
– Comprehensive income for the
period for the Group divided by weighted average outstanding
number of shares at the end of the reporting period.
Interest-bearing debt
 
– Current and long-term debt to commercial
banks and credit institutions.
Net interest-bearing debt
 
– Interest-bearing debt less cash and cash
equivalents.
Vessel availability
 
– Available days are defined as the percentage of
days not included in a firm contract period or option period.
 
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Sea1 Offshore Inc. Annual Report 2024
 
Mandatory ESEF concepts:
Name of reporting entity: Sea1 Offshore Inc.
Domicile of entity: Cayman Islands
Legal form of entity: Inc.
Country of incorporation: Cayman Islands
Address of entity's registered office: P.O. Box 425, N-4664 Kristiansand S, Norway
Principal place of business: Norway
Description of nature of entity's operations and principal activities: Sea1 Offshore Inc is an industrial investment company within the
marine sector of the oil service business.
Name of parent entity: Sea1 Offshore Inc.
Name of ultimate parent of group: Sea1 Offshore Inc.