Solstad Offshore ASA - Investment in Omega Subsea

20 Dec 2024 11:00 CET

Skudeneshavn, 20 December 2024

Solstad Subsea Holding AS ("Solstad"), a wholly owned subsidiary of Solstad
Offshore ASA, has today signed certain transaction documents whereby Solstad
will acquire a 35.8 percent ownership share in Omega Subsea AS - thereby further
strengthening Solstad Offshore's position in the subsea services segment.

Omega Subsea AS is a market-leading provider of ROV, tooling, personnel, survey
and project management services to the global subsea industry. Omega Subsea has
offices in Norway and the UK and has approximately 400 employees. For 2024, the
company is expected to deliver revenue of approximately of NOK 800 million, with
a result before tax of approximately NOK 100 million.

Omega Subsea's revenue has more than trebled since 2022, with associated
exponential growth in profitability. This growth has to a large degree been
driven by its current cooperation with Solstad Offshore, where Omega Subsea
delivers ROVs, tools and personnel to vessels operated by Solstad companies.

Solstad Offshore's focus remains being an owner and operator of offshore vessels
on dayrate-basis and have no intention of being a contractor, but its Services
offering provides clients with access to more complete delivery.

"This investment strengthens our Service offering and gives us ownership in the
solid competence that Omega Subsea AS holds. The cooperation with Omega Subsea
provides customers with easy access to value-added services that they often
require," says Lars Peder Solstad, CEO of Solstad Offshore ASA.


TRANSACTION DETAILS

Solstad Subsea Holding AS has agreed to acquire a 35.8 percent shareholding in
Omega Subsea AS for an undisclosed amount.

Solstad Offshore's investment will be settled partly in cash and partly through
contribution-in-kind of its current 49.99 percent ownership in Omega Subsea
Robotics AS.

"We expect the subsea services market to grow in the coming years, driven by
investments in both oil and gas and new subsea infrastructure within renewable
energy. The investment in Omega Subsea will enable Solstad Offshore to
capitalize more strongly on this projected market growth," adds Lars Peder
Solstad.

Following completion of all transactions, Omega Subsea AS will own 100 percent
of Omega Subsea Robotics AS. Shareholders of Omega Subsea AS will be Omega AS
(60%), Solstad Subsea Holding AS (35.8%) and key employees of Omega Subsea
(4.2%).

The transaction is subject to customary closing conditions including approval
from the Norwegian Competition Authority, satisfactory due diligence and final
transaction documentation. Completion of the transaction is expected in the
first quarter of 2025.

For Solstad Offshore ASA the transaction will be reflected as an investment in
associates and accounted for using the equity method in line with IAS 28. The
transaction is expected to result in a minor accounting impact.


ABOUT THE COMPANIES

Solstad Offshore ASA

The company own and operate a large fleet of offshore vessels, serving clients
all over the world. Via the Service segment, the company offers a comprehensive
range of services on dayrate basis to its clients, including ROV systems,
survey, project manning delivery, engineering, and gangways. Solstad
Services has significantly expanded over the years and continues to invest in
new technologies and equipment to enhance its offerings.

Omega Subsea Robotics AS
Omega Subsea Robotics AS was established in 2022 as an industrial collaboration
between Solstad Offshore and Omega Subsea, with the goal of making joint
investments in ROV systems and associated equipment. The company has an ROV
fleet consisting of 12 integrated and ordered ROV systems. 8 ROV systems are
already mobilized onboard selected Solstad vessels while the 4 remaining ROVs
are planned for integration throughout 2025.

Omega Subsea AS
Omega Subsea AS is responsible for managing, operating and staffing the ROV
systems in the Omega Subsea Robotics fleet. The company was established
in 2012 and has 400 employees, including partners and consultants. The company
has offices in Bergen, Stavanger and Aberdeen (UK).


Contacts

Lars Peder Solstad CEO, at +47 91 31 85 85

Kjetil Ramstad CFO, at +47 90 75 94 89

Solstad Offshore ASA

www.solstad.com

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