Financial report (67f36c1e11566741900df578 SEA1 Offshore 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

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

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.

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.

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.

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%).

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 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.