AQUALIS ASA ANNUAL REPORT 2014 - AqualisBraemar...Marine and Offshore AS in December 2012, and was owned by Strata Marine and Offshore, Gross Management, Ferncliff and key management,

AQUALIS ASA

ANNUAL REPORT 2014

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3 THIS IS AQUALIS

3 Keyfinancialfigures4 Highlights20145 IntroducingAqualisASA8 LetterfromtheChairman10 OffshoreOil&Gas14 OffshoreRenewables16 MembersoftheBoard17 TheExecutiveManagement

20 FROM THE BOARDROOM

20 Corporategovernance24 Directors'reportfor201429 Responsibilitystatement

31 GROUP ACCOUNTS

32 Statementofprofitandloss33 Comprehensiveincomestatement34 Balancesheet35 Changesinequity36 Cashflowstatement37 NotestotheGroupaccounts

57 ASA ACCOUNTS

58 Incomestatement59 Balancesheet60 Cashflowstatement61 NotestotheASAaccounts

69 AUDITOR'S REPORT

AqualisASA–AnnualReport2014THISISAQUALIS

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KEY FINANCIAL FIGURES

Key figures from P&L (USD 1 000) 2014 2013*

Totaloperatingincome 31 937 2 241Payrollandpayrollrelatedcosts 18 563 1 790Otheroperatingcosts 14 575 1 278Proft/(Loss)aftertax -250 -873

Key figures from the balance sheet (USD 1 000)

Cash&cashequivalents 21 790 838 Borrowings - 5 174Totalassets 51 348 19 901Totalequity 44 447 12 335

Share data

Earningspershare(USD) -0.01 Numberofsharesoutstandingasat31.12 43 190 544 Numberofemployeeshareoptionsoutstandingat31.12 750 000Sharepriceat31.12(NOK) 7.55

*FiguresforFY2013representhistoricalfiguresfromWeifaASA’s(formerAqualisASA)groupaccountsrelatedtothespin-offoftheAqualisOffshorebusiness.AqualisOffshorewhichisnowpartofAqualisASAgroupwasacquiredbyWeifaASAinNovember2013.Thus,nofinancialdataisshownfortheperiodpriortotheacquisitioninNovember2013.Therearenosharedataavailablefor2013.

Financial calendar 2015

EVENT DATE

Firstquarterresults 28AprilAnnualGeneralMeeting 22MaySecondquarterresults 26AugustThirdquarterresults 27October

Ticker symbol

OsloBørs AQUAReuters AQUA:OLBloomberg AQUA:NO


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HIGHLIGHTS 2014

Marine & Offshore

Priortothespin-off,AqualisASAcompleted twostrategicallyimportantacquisitions.Otherimportantmilestoneswerealsoachieved:

• InFebruary2014,Aqualissignedamemoran-dumofunderstanding(MoU)toacquireTristeinAS,aleadingproviderofmarineoperationsfortheoffshoreoil,gasandrenewablesindustries.ThetransactionwascompletedattheendofApril2014.Tristeinoperatesthroughthreemainbusinessareas:marineoperations&logistics,engineering&survey,andrenewableenergy.ThepersonnelofTristeinhavealongtrackrecordfromtheoffshoreindustry,servingasmastermariners,offshoreinstallationmanagers,offshoremanagersandlogisticmanagers.Thecompany’sheadquarterisinAsker,Norway,withafurtherofficeinKristiansund,Norway.ThecombinationofAqualisOffshoreandTristeinisagoodmatchintheoilandgassector.Additionally,Tristeinpossessesvaluableexpertisewithintherenewablesandoffshorewindsegment.

• InMay2014,AqualisannounceditsintentiontoacquireOffshoreWindConsultantsLimited(OWC),aleadingproviderofconsultancyservicestotheoffshorerenewablesindustry.OWC,basedinLondon,England,engageninestaff,ofwhichfivearefull-timeemployees.ThecoreteamwithinOWChasunrivalledexpertiseandexperienceintheindustry,whichdatesbacktothefirstoffshorewindfarmdevelopmentprojectintheUK.ThekeymembersoftheteamhavebeeninvolvedinmostofthemajoroffshorewindprojectsthathavebeendevelopedintheUKandtherestofEuropetodate,andalsohaveestablishedreputationsinbothNorthAmericaandthe FarEast.TheacquisitionofOffshoreWindConsultantsoffersAqualisOffshoreadditionalaccesstotheoffshorewindandrenewablesindustry.TheacquisitionwascompletedattheendofJune2014.

• AqualisOffshoreopenedthreenewofficesin2014:AbuDhabi,UAE(February);Shanghai,China(March);andMexicoCity,Mexico(July).

• InSeptember2014,AqualisOffshoresignedalandmarkrigmovingservicescontractwithSaudiAramco,theworld'slargestenergycompany.Underthedeal,AqualisOffshorewillprovideoffshorerigmovingservicesoverthenextthreeyearsforSaudiAramco'sjack-uprigsoperatingintheArabianGulf.

New Board Appointments

• Asthe“new”AqualisASAwaslistedasaseparatecompanyonOSEinAugust2014,anewBoardofDirectorshadtobeformallyelectedbytheshareholders.Allfiveelectedboardmemberswerepriorboardmembersofthe“old”AqualisASA(nowWeifaASA)beforethespin-off.TheBoardconsistsofGlenRødland(Chairman),YvonneL.Sandvold,ReubenSegal,ØysteinStraySpetalenandSynneSyrrist.ThedeputyboardmemberisMartinNes.

Other Corporate Highlights

• From1January2015,theoperationsofTristeinASmergedintoAqualisOffshoreAS,theNorwegianoperationofAqualis.Therationalewastostreamlineinternalprocesses,reduceadministrativeworkandgivethecompanyamoreeasilyunderstandableoperationalprofile.

In August 2014, the specialized marine and offshore engineering consultancy businesses of Weifa ASA (previously Aqualis ASA) was spun off and listed on the Oslo stock exchange (OSE) and subsequently took over the name of Aqualis ASA (OSE: AQUA). Although the listing as a dedicated marine and offshore consultancy business did not represent a material operational change for the company’s employees or customers, it provided existing and potential shareholders with a much clearer investment profile for the “new” Aqualis ASA.


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Brief group historyAqualisOffshorewasestablishedbyStrataMarineandOffshoreASinDecember2012,andwasownedbyStrataMarineandOffshore,GrossManagement,Ferncliffandkeymanagement,beforetheacquisitionbyAqualisASA(nowWeifaASA)inNovember2013.

InApril2014AqualiscompletedtheacquisitionofTristeinAS,aleadingproviderofmarineoperationsfortheoffshoreoil,gasandwindindustries.

InJune2014,AqualisacquiredOffshoreWindConsultantsLtd.

InAugust2014,AqualisASAwasspunofffromitsparentgroupandlistedasaspecializedmarineandoffshoreengineeringconsultancygroupontheOslostockexchange.

From1January2015,theoperationsofTristeinASwasmergedintoAqualisOffshoreAS,theNorwegianoperationofAqualis.

Aqualis ASA (OSE: AQUA) is a public company that, through its subsidiaries, offers marine and engineering consultancy services to the offshore oil, gas and renewables sectors globally. The group employs approximately 200 experienced consultants across 13 offices in 10 countries worldwide.

INTRODUCING AQUALIS ASA


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Today’s Aqualis ASAWithofficesstrategicallylocatedneartheworld’smajorshippingandoffshoreenergycentres,AqualisOffshorehasastrongglobalpresence.ThecompanyisheadquarteredinLondon,UK,andhasregionalsubsidiariesinthefollowinglocations:Norway(Oslo/Sandefjord,AskerandKristiansund),Brazil(RiodeJaneiro),Mexico(MexicoCity),USA(Houston),Bahrain(Manama),UAE(DubaiandAbuDhabi),KingdomofSaudiArabia(Dammam),SingaporeandChina(Shanghai).ThecompanyisalsointheprocessofsettingupfurthersubsidiariesinQatarandMalaysia.Thisglobalpresenceallowsthebusinesstorespondquicklywhenhigh-endmarineorengineeringconsultancyisrequired.Althoughsomeoftheofficeshavespecialfocus

oncertainareasofoperations,allserviceofferingsareprovidedacrossallregions.

AqualisASAoperatesundertwodifferentbrands:AqualisOffshoreandOffshoreWindConsultants:

Aqualis Offshoreisaspecializedoffshoremarineandengineeringconsultancyfirm,focusingontheshallowanddeep-wateroffshoresegmentsoftheoilandgasindustry.Itscoreservicesincludesconcept,FEEDandbasicdesignengineeringforupgradesandconversionofjack-ups,FPSOsandrigs,marinewarrantyservices,transportationandinstallation,rigmoving,dynamicpositioning,constructionsupervisionandduediligenceservices.

The following sets out important events in the history and development of the “new” Aqualis Group

YEAR KEYMILESTONES&EVENTS

24September2007 TristeinASestablished

25November2011 OffshoreWindConsultantsLtdestablished

13May2012 StandardEngineeringASestablished

17December2012 AqualisOffshoreLtdestablishedbyStrataMarine&OffshoreAS¹

14January2013 AqualisOffshorePteLtd(Singapore)established

1February2013 AqualisOffshoreUKLtd(London)established

13March2013 AqualisOffshoreInc.(Houston)established

18March2013 AqualisOffshoreServiçõsLtda(RioDeJaneiro)established

25April2013 AqualisOffshoreMarineServicesLLC(Dubai)established

26June2013 StandardEngineeringASacquiredbyAqualisOffshoreLtdandrenamedtoAqualisOffshoreAS

8November2013 AqualisOffshoreLtdacquiredbyAqualisASA

1January2014 TristeinMarineOperations&LogisticsAS,TristeinRenewableEnergyASandTristeinEngineering&SurveyASandTristeinStavangerASmergedintoTristeinAS

9February2014 AqualisOffshoreMarineConsultingLLC(AbuDhabi)established

28March2014 AqualisOffshoreMarineConsultingCo.,Ltd(Shanghai)established

29April2014 TristeinASacquiredbyAqualisASA

2June2014 AqualisOffshoreHoldingASAestablished

27June2014 OffshoreWindConsultantsLtdacquiredbyAqualisASA

10July2014 AqualisOffshoreS.deR.L.deC.V.(Mexico)established

24July2014 AllthesharesinAqualisOffshoreLtd.,TristeinASandOffshoreWindConsultantsLtd.transferredfromAqualisASAtotheCompanytogetherwithNOK65,000,000(USD10.8million)incash,NOK49,944,965(USD8.3million)ininterestbearingloanstoAqualisOffshoreLtdanditssubsidiaries,andNOK55,000,000(USD9.2million)infinancialassetsrepresentingapartinterestintheprepaymentinrelationtoAqualisASA’sacquisitionofWeifaAS

5August2014 ThedistributionoftheCompany’sSharesapprovedbytheEGMofAqualisASA

11August2014 TheSharesintheCompanydistributedtoEligibleShareholdersinAqualisASA

13August2014 FirstdayoftradingforAqualisOffshoreHoldingASA

21August2014 AqualisOffshoreHoldingASAchangesnametoAqualisASA

Houston

Mexico City

Rio de Janeiro

London

Oslo/Sandefjord/Kristiansund

Dammam

DubaiQatar

Kuala Lumpur

Under developmentCurrent locations

Abu Dhabi

Manama

Singapore

Shanghai


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Offshore Wind Consultantsisagloballyfocusedconsultancyprovidingconsultancyservicestotheoffshorerenewablesindustry.

Group strategyAqualisASA’stargetmarketistheoffshoreoilandgas,marineandrenewablessegments,inwhichitfocusesonhigh-endnicheconsultancy.

TheCompany’sstrategyistoofferitsspecialistmarineandengineeringconsultancyservicesthroughagrowingnetworkofglobaloffices.Asitexpandsglobally,Aqualispursuesitshighgrowthambitionsprimarilyfocusingondevelopingeconomiesandemergingmarkets.TheGroup’sstrategyistoexpanditsmarineandoffshoreactivitiesthroughtheestablishmentof

newofficesworld-wide,throughasignificantincreaseinthenumberofemployees,andthroughpotentialacquisitionsofsimilarbusinessessuchasTristeinandOffshoreWindConsultants.

Corporate Structure

AqualisASA

AqualisOffshoreLtd(London,UK)

OffshoreWindConsultantsLtd(London,UK)

AqualisOffshoreMarineServicesLLC(Dubai,UAE)**

AqualisOffshoreInc(Houston,USA)

TristeinAS(Oslo,Norway)

AqualisOffshore ServiçõsLtda

(RiodeJaneiro,Brazil)

AqualisOffshoreUKLtd(London,UK)

AqualisOffshorePteLtd(Singapore)

AqualisOffshore S.deR.L.deC.V.

(MexicoCity,Mexico)

AqualisOffshoreMarineConsultingCo.,Ltd.(Shanghai,China)

AqualisOffshoreAS(Sandefjord,Norway)

AqualisDammam,KSA* AqualisManama,Bahrain*AqualisOffshore

MarineConsultingLLC(AbuDhabi,UAE)**

* InKSA/Bahrain,AqualisoperatesthroughagencyagreementwithAET** Thecompanyis100%controlledbyAqualisOffshore

100% 100%

100% 100% 100% 100% 100%

100% 100% 49%

49%

100% 100% 100%


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Letter from the Chairman

IS THE OIL PRICE DECLINE AND THE OIL SERVICE INDUSTRY RECESSION CYCLICAL OR STRUCTURAL? This is the key question for everybody involved in the industry.

Oilandgasanditsserviceindustryhasalwaysbeencyclical,withfluctuationsintheoilpriceandevenbiggercyclicalswingsofrates/pricesforsuppliers(duetocyclesininvestmentsforcapitalequipment).Isthistimedifferent?Isthisanormalcyclicaldownturn,orisitacombina-tionofacyclicalandstructuraldownturnwherenewtechnologieswillreplaceoilandgasintheenergyindustry?Toanswerthisquestionitisimportanttolookatthebigpictureandnotbetooinfluencedbymedia,politicians(talkingbutnotdoing)orwhatishappeninginthebuslanebetweenNesøyaandAkerBryggeinOslo(thelaneisfilledwithTeslasandotherelectriccars).

Theoilandgasindustryproducesabout90-91mbarrelsofliquidsandmorethan55mbarrels(theequivalentof)gasdaily.Thetotaldailysalevaluebytheoilandgascompaniesisapproxi-matelyUSD12-13bnperday,orUSD4,600bnperyear.Theindustrysupplies52%oftheworld’stotalenergyneedsandmorethan97%ofthe

energyneededfortransportationworldwide.Economicgrowthisfuelledbyaccesstolowcostenergy.Economicgrowthwithoutenergyisimpossible.

Theoilandgasindustryisnotonlyamajorglobalindustry,itisprobablyalsothelargestsourceofincome/taxforgovernments’worldwide.In2013,theaveragesalespriceofcrudewasUSD96perbarrel(averageBrentwasUSD103perbarrel).TheaveragegovernmenttakefromproductionofcrudeoilwasUSD54perbarrel–or56%oftheproductionvalue.

Butthisisnottheonlygovernmentrevenuefromtheoilindustry.Theoilconsumptionisheavilytaxedintheconsumingcountries(VAT,taxonCO

2andothergasolinetaxes).InEurope,theaveragegasolinepriceisintheregionofUSD2(in2013)perliter.ThistranslatestoapriceofUSD270perbarreltotheend-user.Adjustedformargintotherefinery,transportationandthemarginofthegasolinestation,thetaxperbarrelinEurope(consumercountries)isaboutUSD150perbarrel.Insum,everybarrelofoilconsumed

inOECDEuropeistaxedmorethanUSD200perbarrel,splitwithUSD54perbarreltotheproducingcountryandaboutUSD150perbarreltotheconsumingcountry.

Investmentinexplorationandproduction(E&P)andoperationalcostintheoilindustrywasin2013onaverageUSD28perbarrel(fromUSD20onshoretoUSD88foroilsandproduction).ThetotalmarketforoilandgasservicecompaniesisthereforeapproximatelyUSD900bnannually,plusfurtherUSD300bnforgasE&Pinvestmentandopex–translatingtoatotalofUSD1,200bnservicemarketsupporting52%oftheworld’senergyneeds.

Thepurposeoftheaboveanalysisandfiguresistoputtheoilpricecorrectionoverthelast6-7monthsintoperspective.

Theworldeconomyandtransportation,whichiscriticalforalleconomicactivity,isaddictedtooil.Further,governmentsarealsoaddictedtooilrevenue.Notonlytheoilproducers,butalsoformostconsumernations(OECDcountries

especially),theoilindustryisabigtax/cashcow.Intheshorttomediumterm,theoilindustrycanliveandgrowitsproductioninlinewithconsumption-growthwithanoilpriceofUSD40to50perbarrel.The“losing”partywillbethegovernmenttakeintheoilproducingcountries.Governmentprofit,oiltaxes,royaltiesandbonuseswillhavetobereducedtothe“newworld”/newpriceregimeiftheoilpricestaysatthecurrentlevel.Atworstcase,theoilandgasindustrywillbecomea“normal”industrywheregovernmentsinoilproducingcountriesonlychargeregularincometaxandemployeetax.TheE&PandaverageOPEXcostfortheindustrywasUSD28perbarrelin2013,andisprobablynow(2015)aroundUSD24-25perbarrel(duetopricedeflation,rigrates,boatratesandsoon).Inaddition,theoilcompaniesrequireaboutUSD15perbarreltoserviceitscapital/investmentandotherneeds.Hence,anoilpriceofUSD40-50perbarrelcouldbesustainable,butmostofthegovernment“superprofittax”wouldthenevaporate.

Further,totalworldcarandtrucksalessetnewrecordseveryyear.In2013,theproductionof


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newcarsandcommercialvehicleswas87millionand22millionrespectively.Intotal,thenumberofregisteredcars,trucksandbusesintheworldpassed1billionin2010andisprobablyabove1,1billiontoday.Alotishappeningwithalternativefuelforthetransportationindustry,withLPG,LNG,hydrogenandelectricityasthemostdiscussed,R&D-intensivealternatives.Butthefiguresandimpactontheoilconsumptionisstillmicroscopic.Iexpectoilconsumptiontocontinuetogrowbasedongrowthinthedevelopingworld.Duetobettertechnologyandimprovingfueleconomy,thedevelopednations’consumptionofoilpeaked10-15yearsago.IEAandsimilaragenciesexpectthattheannualoilconsumptionwillcontinuetogrowwithabout0,5-1mbarrelsperdayoverthenextfewyears.Ultimately,theconsumptionwillprobablypeak(fueleconomyandnewtechnology),butthisisprobably20-30yearsintothefuture.

Myanswertothe“keyquestion”isthefollowing:Thisdownturnisanormalcyclicaldownturnduetooverinvestmentsinmostsegmentsoftheoilindustry.Itisnotastructuraldownturn.Therearesignsofnewtechnologywhichcouldreplaceoillongertermintransportation.However,thechallengesaremany,andIbelieveanystructuraldownturnintheoilindustrycreatedbya

disruptivetechnologicalbreakthroughintransportationisstillyearsaway.Thebiglosersinthecyclicaldownturnwill,asalways,bethegovernmentsoftheoilproducingnationsandthecapitalintensivepartoftheoilserviceindustry(rig,boatownersandother).Thewinnerswillbethosecompanies(andnations)thathavealowdebtlevel,flexibleassetandcostbase,andarethinkinglongterm.Theoilindustryasanindustrywillcontinuetobecyclicalwithmanyprofitableyearsahead.

Aqualis in 2014 and the futureBasedonmyviewthatthecurrentcorrectionintheoilindustryisa“normal”cyclicaldownturnandnotthestartofastructuraldownturn,IexpectAqualistocontinuetogrowin2015.Themarketwillbemoredifficultin2015,butAqualis’growthfoundationisstrongergoinginto2015thanitwasgoinginto2014.Iexpectthelatterfactor(microfactors)toovertakethemacrofactors(oilpriceandE&Pinvestmentclimate).

Firstly,theAqualismanagementteamhasmorethandoubledthenumberofemployeesduring2014fromlessthan100toabout200employeesattheendof2014.Secondly,theglobalpresenceofAqualishasbeenfurtherdevelopedwithnewtradingofficesinChina,Mexico,

London,Kristiansund,AskerandAbuDhabiduring2014.ThecompanyhasalsostartedsettingupnewofficesinQatarandMalaysia.Thirdly,amajorityofAqualis’businessisrelatedtooperationofassets,notinvestmentsinnewassets.TheimpactofreducedE&Pinvestmentsisthereforepartlymitigatedbyalargeshareofrevenuefromoperationsofrigs,boatsandsimilar.Finally,Aqualis’marketshareasarelativelynewcompanyismodestinmostsegmentsthatwearetargeting.Therefore,thestrategyistocontinuetogrowourmarketshare.

Iwouldliketotakethisopportunitytothanktheemployees,themanagementandtheboardinAqualisfortheirfantasticachievementsduring2014.Weachievedseveralmilestones:1)Aqualishasabalancesheetwithnodebtandsignificantcashafterraisingfundingfromthestockmarket.2)In2014Aqualismadetwoacquisitions,TristeinandOffshoreWindConsultants.3)The“old”AqualisalsoacquiredWeifaASandsubsequentlyspunoffalltheoilandgasrelatedactivityintotoday’sAqualisASA.4)Revenueendedat USD32minitsfirstfulloperatingyear.Finally,thenumberofclients/customersincreasedsubstan-tiallyduring2014withAqualisgraduallybecomingmoreknown/recognizedintheindustry.

GlenRødland Chairman,AqualisASA


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OFFSHORE OIL & GAS

AqualisOffshore’scoreservicesincludesconcept,FEEDandbasicdesignengineeringforupgradesandconversionofjack-ups,FPSOsandrigs,marinewarrantyservices,transportationandinstallation,rigmoving,dynamicpositioning,constructionsupervisionandduediligenceservices.Thegroupiscurrentlyoperatingoutof13officesworldwideandemploysapproximately200people.

InApril2014AqualiscompletedtheacquisitionofTristeinAS,aleadingproviderofmarineoperationsfortheoffshoreoil,gasandrenewablesindustries.From1January2015,TristeinASwasmergedintotheoperationofAqualisOffshoreAS.

Key servicesAqualisOffshorespecializesinthefollowingengineeringandmarineservices:

• Engineeringsolutions • Constructionsupervision • Technicalduediligenceservices • Transportationandinstallation • Rigmoving • Marinewarranty • Dynamicpositioning • Marineconsultancy

Aqualis ASA’s offshore oil and gas activities are carried out by Aqualis Offshore. The company provides marine and engineering services to the offshore oil and gas industry worldwide. Its multi-disciplinary engineering and marine teams are recognized in the industry for their competence and experience. Aqualis Offshore works closely with clients to understand their requirements, identify solutions and to execute their projects and marine operations in a timely, cost effective and safe manner.


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Engineering SolutionsAqualisOffshoreprovidesasolution-basedapproachtoengineering.Itsengineersareaimtoworkwiththeclientasaone-stop-shoptofindefficientsolutionstotheirengineeringprojects.

DuetotheindependentnatureofAqualisOffshore,allsolutionsarecost-effective,fitforpurposeandtailoredtosuitthespecificneedsandconstraintsoftheclient.Thecompany’soffshoreengineeringexpertisecoversthelife-cycleofanoffshorefacilityfromconceptandbasicdesignthroughinstallationandontoageingplatformintegritymanagementandfinally,decommissioning.Weareinvolvedinboththeshallowanddeepwaterendsoftheoffshoreoilandgasindustryandoperateinthemajorcentresoftheoffshoreindustry.

TheteamofhighlyqualifiedengineerscanprovideuniquesolutionsformanyplatformtypesincludingMobileOffshoreDrillingUnits(MODU),WindTurbineInstallationVesselsandLiftboats,MobileOffshoreProductionUnits(MOPU)includingFPSO,FSO,FLNG,aswellasotheroffshoreinstallationsandfloatingstructures.Thesesolutionsrangefrom:

• Conceptdesign • Basicdesign • FEEDandpre-FEEDsolution • Upgradeandmodificationengineering • Advancedengineeringsolutions

Transportation & InstallationAqualisOffshore’smulti-disciplinedteamsofengineers,surveyorsandmastermarinershavemanyyearsofexperienceintheoffshore

industry.Thecompanyspecialisesincomplexmarineoperationsandcanprovidevaluableearlyplanningandadvicetooptimisethesolutionswithregardtovesselandequipmentselection,structuraldesignandoffshoreprocedures.Subsequentengineeringcomprisesanalysisanddesignassociatedwithalltemporaryphasesofamarineoperationfromloadoutandtransporta-tiontoinstallationordischargeofhighvalueoffshoreassets.Suchcalculationsinclude:

• Vesselballasting • Globalandlocalvesselstrength • Vesselmotionsandstability • Grillageandseafasteningdesign • Dynamicliftingandrigging • Hydrodynamicanalysis • Jacketlaunchandupending • Dynamicanalysisforfloatoverinstallations

• Geotechnicalanalysisetc. • Productionofappropriatedocumentation

AqualisOffshore’sservicesthenextendstooffshoreoperationsupervisionandsupportfromqualifiedandexperiencedmarinesuperinten-dentsandprojectengineers.

AqualisOffshoredrawsontheservicesofexternalcompanieswheresupplementaryskillsorinputarerequired–forexamplemetoceandatafortransportationassessmentandplanning.

Theseservicesaretailoredtosuittheclients'requirementsandcanbesuppliedasconcep-tual/feasibilitystudies,detailedengineeringandoperation,orverification.

ThefigureaboveillustratesAqualisOffshore’skeyservicesacrossaproject/assetlifecycle.

Engineering (niche-focus)

• Basic/conceptualdesign/FEED

• Modificationsandupgradesofdrillingrigs/FPSOs/FSOs/lift-boats

• Transportation&installationanalysis

Project initiation Project procurement Hook-up and commissioningEngineering/ design phase Construction Asset management De-commissioning

Construction yard supervision

• Siteattendanceonbehalfofowners,shipyards,financialinstitutions,3rdparties

• New-builds+conversions&upgrades

• Duediligence/compliancy;financialcommunityfocus

Marine operations

• Transportandinstallationservices;“movingofoffshoreassets”

• Rigmoving

• Float-overs

• Siteattendance&proceduremanagement

Inspection & approvals

• Marinewarrantyservices

• Mooringanalysis

• Conditionandsuitabilitysurveys/audits

• DPinspectionsandaudits

• Jack-upsiteassessments

Aqu

alisO

ffshore

services

Marine project/asset life cycle


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Marine WarrantyTheAqualisOffshoreteamsofmarinewarrantyengineers,surveyorsandmastermarinersacttoprotecttheinterestsofunderwritersorself-insuredclients.

AqualisOffshoreprovidesprovideindependentthirdpartyreviewandapprovalofoffshoreprojects.Theteamshaveextensiveexperienceinawiderangeofoffshoreactivitiesfromsimplemarineoperationstocomplexandchallengingoffshoreprojects.

Typicalactivitiesmayinclude:

• Documentreviews • Suitabilitysurveysofoffshoremarinespreads • Approvaloftowages,heavyliftsandinstallations

• Subseaoperations • Decommissioningandremovalofoffshorestructures

• Actingasmarineadvisorstooilcompaniesandtheircontractors

Rig MovingAqualisOffshoreoffersafullrangeofrigmovingsupportservices,anditsteamsarefullyexperiencedwithbothjack-upandfloatingunits.Thecompanyoffersfullengineeringassessmentsforsite-specificlocationapprovalsandprovidebothmarinewarrantysurveyorsandrigmovers/towmastersforoffshoreattendanceduringrigmoves.Thefollowingservicesareprovided:

• Site-specificrigdeploymentconsultancy • Pre-contractrigsuitabilityengineeringanalyses

• Legpenetrationanalyses • Site-specificlocationapprovals • Mooringanalyses • Marinewarrantyservices • Drytransportationapprovalsandconsultancy • Towageapprovals • Provisionoftowmasterservices • Turnkeyrigmoves • Generalrigmovingconsultancy • Trainingcourses

Construction SupervisionAqualisOffshoreprovidesteamstoworkwiththeclientthroughouttheconstructionorconversionofanoffshoreasset.Theprojectteammonitorstheprojecttoensurethatitiscarriedoutinaccordancewiththecontract,thespecifications,client’sexpectations,flagandclassrequirements.

Theprojectteamconsistsofkeypersonnelwiththenecessaryskillstoensurethattheconstruc-tionmeetsthebuildschedule.AqualisOffshoreprovidesagroupofengineersandinspectorsofvariousdisciplinestobeutilisedatdifferentstagesoftheproject.Inaddition,dedicatedplanninganddocumentcontrolfunctionsareprovidedthroughoutthedurationoftheconstructionphase.

Keyprojectcontrolactivitiesinclude,interalia:

• Developmentandimplementationofprojectprocedures

• Reviewofmachineryandequipmentpurchaseordersandspecifications

• Developmentandimplementationofprojectexecutionplans

• Monitoringofworkprogressandtestingactivity

• Monitoringofqualitycontrolofeachactivitythroughouttheconstruction

• Attendanceatformalsafetymeetings • Attendanceatfactoryacceptancetesting(FAT) • Auditsofsubcontractor’sfacilities • Attendanceduringseatrialsandincliningexperiments

• Reportingtotheclientonaweeklyandmonthlybasis

• Trackingofsitequeries,observingsafetypolicy,monitoringqualitycontrolmeasures

• Maintainingelectrical&mechanicalcompletionandcommissioningrecordsanddatabase

• Monitoringandreportingonextrasandcredits

Dynamic positioning services (DP)AqualisOffshoreprovidesanexperiencedmultidisciplinaryteamofengineeringandoperationalresourcestosupportthedynamicpositioning(DP)industry.Thecompany’saimistoassistclientstooperateandvalidateaccordingtotheirunits’specificindustrialmission.WhetheridentifyingthecriticalactivitymodeorverifyingtheworstcasefailuremodethroughFME(C)A,AqualisOffshoreprovidesclientswithindependenttechnicalreviewstoenhancesafeoperations.ThroughexperiencewithitsDPFME(C)Awork,AqualisOffshorecanalsoprovideanalysesofcranes,bilgeandballastsystems,pipelaysystems,andmanymorecomplexsystems.

DPservicesinclude:

• FME(C)A • DPFMEAproving&annualtrials

• DPdesignreview/redundancyanalysis • DPsuitability/conditionsurveys • DPgapanalysis • DevelopmentofWSOG&ASOG • DPincidentinvestigation • DPmanuals&procedures • DPoperatorcompetenceassessment&verification

• DPprojectmanagement&seatrialsmanagement.

• PlanningforDPconversions&lifeextensions • CMID&OVIDsurveys • WitnessFATs&CATs

Marine consultancyAqualisOffshoreoffersawiderangeofmarinecapabilitytotheoil&gasandmaritimeindustries.Thecompany’smarinershavemanyyearsofexperienceassociatedwithdrillingrigsandoffshorevessels.Itaimtoassistclientsinfindingpracticalsolutionstotheirmarineoperationsandprojectsand/orprotecttheirinterestswhensub-contractingormakingassetinvestments.AqualisOffshorecanoffer:

• Provisionoftowmastersandrigmovers • Provisionofmarineadvisors • Drytransportationconsultancyandoperations • Vesselinspections • Rules&regulationscompliance • Incliningexperiments • Pilotageoperations • Rigmoveprocedures • Suitabilitysurveys • Pre-charteraudits/surveys • Pre-purchasesurveys • Bollardpullcertification


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• Draftingandreviewofoffshoreprojectrelatedprocedures

• Mooringpatterns • Anchorhandlingprocedures • Witnessingequipmenttrialsandtests • DPinspectionsandaudits

Technical due diligence servicesAspartofAqualisOffshore’sconstructionservicesandpriortoanyinvolvementwiththeconstructionphaseorevenduringaconstruc-tionproject,itcanassistwiththeduediligenceprocesstoprovidethefollowingservices:

• YardAudits • Pre-contractevaluation • Postcontractevaluation • Equipmentprocurementassessment • Constructionmonitoring/siteattendance • Financialreviewandassessment • Paymentmilestoneaudits • Riskassessmentandmanagement • Designreview

AqualisOffshore’sindependenceandindepthexperienceofassettypeandconstructionfacilitiesallowsittoactasanadvisoronallaspectsofanyconstructioncontracteitherpre-orpost-execution.


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OFFSHORE RENEWABLES

InJune2014,AqualiscompletedtheacquisitionofLondonbasedOffshoreWindConsultantsLimited(OWC),aleadingproviderofconsul-tancyservicestotheoffshorerenewablesindustry.ThecoreteamwithinOWChasunrivalledexpertiseandexperienceintheindustry,whichdatesbacktothefirstoffshorewindfarmdevelopmentprojectintheUK.ThekeymembersoftheteamhavebeeninvolvedinmostofthemajoroffshorewindprojectsthathavebeendevelopedintheUKandtherestofEuropetodate,andalsohaveestablishedreputationsinbothNorthAmericaandtheFarEast.

IncombinationwiththeGroup’sotherservices,OWCisabletodeliverenhancedservicestotheirclientsbysharingknowledge,expertise,andresources,particularlywhereengineeringandoffshoreattendancesarerequired.

Key servicesOWCLimitedandAqualisOffshorespecialisesinprovidingservicestooffshorewindfarmdevelopersandinvestorsforoffshorewindprojects.ThepersonnelinOWCLimitedhasadeepindustryknowledgeandunrivalledpracticalexperiencewhichcanbeappliedtoprojectsthroughtheirfulllifecycle.Wealignourserviceswithourclients'businessgoalsandstrategieswhichenablesustodeliverpracticalandinnovativesolutions,whichultimatelyyieldstangibleresultsforourclients.OWCandAqualisOffshoreprovidethefollowingserviceswithintheoffshorerenewablessector:

• Consultancyservices • Duediligence • Projectmanagementandsupportservices • Engineeringservices • Expertwitness

Consultancy servicesOWChasexperienceinprovidingconsultancyadvicethroughtheprojectlifecycleofanoffshorewindfarmdevelopment.Thecompanyassistswithdevelopingstrategiesforprojectsandwithselectingandassessingthemostadvantageousoffshoresitesfrombothatechnicalandcommercialperspective.Thecompanycanprovidethefollowingconsultancyservices:

• Developingstrategiesforprojects andsiteselection

• Procurementstrategies • Designandconstructionmethodologies • Installationandcommissioning • Developmentoffinancialmodels • Riskmitigation • Developmentinterfaceregisters

Theteam’sexperiencealsoenablesittoprovidedirectadviceandsupportthroughthefinal

installationandcommissioningstageoftheproject.Thisisachievedwithathoroughunderstandingofalllogisticalissues,combinedwithaccesstoextensivedatabasesofinforma-tiononvessels,bargesandequipment.Thisinsightcoversboththeinstallationoffounda-tionsandturbinesaswellasthecriticalsubseacableinstallationworks.Thecompanyalsohasdirectexperienceofdecommissioningwork,whichwillbeanimportantfeatureforconsidera-tioninthefutureforoffshorewindfarmdevelopmentprojects.

Due diligenceAsOWCLimitedhasextensiveknowledgeandexperienceoftheentireprojectlifecycleofoffshorewindfarmprojects,thecompanyispositionedtoprovideduediligenceservicestopotentialinvestorsintoprojectsaswellasinvestorswhomaybelookingtotakeastakeholdinginorganisationswithinthesupplychainoftheindustry.

Aqualis ASA offers services in the offshore renewables sector through Offshore Wind Consultants and Aqualis Offshore.


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Thecompanyusesitsextensivedatabasesofprojectandcompanyinformationwhichprovidesavitalreferenceforthistypeofwork.Italsohasitsowncapitalcostevaluationmodelsforprojectswhichcanreliablypredicttheestimatedcapitalexpenditureofallthephasesofanoffshorewindfarmproject.

OWCcanprovidetheseservicestoeitherpartnerswishingtotakeequityinaprojectoronbehalfofbanksandlenderswhoareprovidingadebtfacilityfortheprojectdevelopment.

Project management support servicesOWCoffersprojectmanagementservicesthroughallstagesofanoffshorewindfarmproject,fromearlystagesplanningthroughdesignandengineeringtoconstructionandinstallation.

Thecompany’sreputationisbasedonearlyinvolvementinprojectsfromtheplanning,designandengineeringstagesandthenseeingourroleexpandtoaprojectmanagementserviceproviderthroughtheconstructionandinstallationphases.

Theteamcaneitherundertakealeadingroleandmanageaprojectdirectlyonbehalfofadeveloper,ormorecommonly,workaspartofanintegratedteamwithaclient,managing

specificworkpackagesandprovidingsupportandadvicetoallotherareasoftheproject.

Engineering servicesOWCcanprovideengineeringservicesforthefollowingtasksconnectedtooffshorewindfarmdevelopments:

• Siteevaluation • Geotechnicalandgeophysicalsiteinvestigationsandevaluations

• Foundationstructures • Healthandsafetymanagement • Marineoperations • Offshoreinstallation • Specialassessments • Subseacableinstallationandprotection.

Expert witnessOWCcanleverageonitsknowledgeoftheoffshorewindfarmindustrytoactasanexpertwitnessinassignmentswherethecompanyhasnoconflictsofinterest.Expertwitnessservicesaretypicallyprovidedforwindfarmcommercialevaluationsandalsoincasesoffailureordamageofsubseacablesystems.

Anyexpertwitnessassignmentwillonlybeundertakenwherethereisaclearlyestablished'noconflictofinterest'.


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MEMBERS OF THE BOARD

GLEN RØDLANDChairman

GlenRødlandisadirectorandco-investorofDirectActiveInvestmentsinFerncliffTIHAS,wherehehasbeenapartnersince2006.BeforejoiningFerncliffheworkedfor15yearswithportfoliomanagementandinvestmentbankingforDNB(Vital)andSwedbankFirstSecurities(formerlyElconSecurities).MrRødlandhasalsoworkedasamarket andinvestmentanalystatJEBSENS,aNorwegianshippingcompany,asamanagementconsultant inPWC,andasaresearchassistantattheNorwegianschoolofeconomicsandbusinessadministration(NHH).HehasPhDstudies inFinancefromNHHandUCLA.MrRødlandisaNorwegiancitizenandresidesinOslo,Norway.

YVONNE L.SANDVOLDBoardmember

YvonneL.SandvoldistheChiefOperatingOfficerofFrognerbyggAS,andhasextensiveexperiencefromtheNorwegianrealestateindustry.MsSandvoldcurrentlyservesontheboardofseveralprivatecompanies.Sheholdsacand.psychol.degreefromtheUniversityofOslo.MsSandvoldisaNorwegiancitizenandresidesinOslo,Norway.

REUBEN SEGALBoardmember

ReubenSegalistheDirectorMiddleEastforAqualisOffshoreandhasalmost 20years’experienceintheoffshoreandshippingsectorscoveringbothengineeringdesignandshipsurveying.MrSegalisanavalarchitect,andhasextensiverecentglobalbusinessdevelopmentexperiencewithfocusondesignandconstructionofoffshoreoilandgasassets,includingMODUandMOPUunitsfromFEEDthroughtoyarddelivery.HeholdsamasterdegreeinEngineeringfromtheUniversityofNewcastle.MrSegalisaBritishcitizenandresidesinDubai,UAE.

ØYSTEIN STRAYSPETALENBoardmember

ØysteinStraySpetalenist hechairmanandownerofinvestmentfirmFerncliff TIHAS.MrSpetalenisanindependentinvestor.HehasworkedintheKistefosGroupasaninvestmentmanager,ascorporateadvisorindifferentinvestmentbanks,andas aportfoliomanagerinGjensidigeForsikring. MrSpetalenisacharteredpetroleum’sengineerfromtheNorwegianUniversityofScienceandTechnology.HeisaNorwegiancitizenandresidesinOslo,Norway.

SYNNE SYRRISTBoardmember

SynneSyrristisanindependentbusinessconsultant,andhasextensiveexperienceasanon-executivedirectorofbothprivateandpubliccompanies.MsSyrristwaspreviouslyapartnerandfinancialanalystatFirstSecurities.Shecurrentlyservesontheboardofseveralpubliccompanies,includingAwilcoDrillingPlc,AwilcoLNGASA,EidesvikASAandWeifaASA.SheholdsanMScfromtheNorwegianUniversityofScienceandTechnology,andqualifiedasanauthorisedfinancialanalystattheNorwegianSchoolofEconomicsandBusinessAdministration.MsSyrrist isaNorwegiancitizenandresidesinOslo,Norway.

MARTIN NESDeputyBoardmember

MartinNesisCEOandpartnerofinvestmentfirmFerncliffTIHAS,wherehehasworkedsince2008. MrNeshasalawdegreefromUniversityofOsloandalsoholdsaMasteroflaws'degreefromUniversityofSouthampton,England. HehaspreviouslyworkedseveralyearsfortheNorwegianlawfirmWikborgRein,bothintheirOsloandLondonoffices,andfortheshippinglawfirmEvensen&Co.MrNes'experienceisespeciallywithintheshippingandoffshoreindustrywherehehasbeeninvolvedinandalsoledanumberofprojects.


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THE EXECUTIVE MANAGEMENT

DAVID WELLSChiefExecutiveOfficer

DavidWells,aMasterMariner, wasafoundingmemberofAqualisOffshore.MrWellshasmore than30years’experienceintheoffshoreconsultancysectorwithparticularfocusonoffshoreoperations,MWSandmarineconsultancy.Heisaspecialist onjackuprigmoveoperations,locationapprovalsandallaspectsofrigmoving.PriortojoiningAqualisOffshore,MrWellswas aspecialistconsultanttotheoffshoremarket,andpreviouslyheldseniorGlobalandRegionalMDrolesforamajorleadingglobaloil&gasconsultancy.HisfocusduringthelatterwasonMiddleEastandAfricaandIndiansub-continentalregionswhere hemanagedsevenofficesandamulti-culturalstaffofsome200employees.

CHRISTIAN OPSAHLChiefFinancialOfficer

ChristianOpsahljoinedAqualisOffshoreasCFOinJune2013, andlaterasCFOforAqualisinNovember2013.Priortothis,hewasInvestmentDirectoratStrataMarine&Offshore–aFerncliffcontrolledinvestmentvehicle.MrOpsahlhasextensiveinternationalfinanceexperiencewithinprivateequity,M&Aadvisory,equitycapitalmarkets,leveragedfinanceanddebtrestructuring.HehaspreviouslyworkedasInvestmentProfessionalwithprivateequityfirmTritonPartners,aswellaswithininvestmentbankingatCarnegieandCreditSuisse.MrOpsahlholdsaBBAinFinance(summacumlaude)fromSouthernMethodistUniversityinDallas,Texas.

DR.BADER DIABDirectorofEngineeringandNorthAmerica

Dr.BaderDiabisastructuralandglobalperformanceengineer.Hehas25yearsoffshoreengineeringglobalexperiencecoveringbothshallowanddeepwatersectorswithextensivestructuraldesignexperienceofMODUs,mooringsystems,motions,installationengineeringandfamiliaritywithshipyards.Dr.BaderDiabisbasedinHouston,USA.

PHIL LENOXDirectorofAsiaPacific

PhilLenoxisastructuralengineerandhasover40yearsofonshore/offshoreexperiencewithbothcontractorsandconsultanciesincludingconceptualdesign,detailedstructuralanalysisanddesignthroughtoconstructionandinstallation.HespecialisestransportationandinstallationprojectsincludinguseofHLVs,topsidefloatoversandhasextensiveMWSexperience. Mr.LenoxisbasedinSingapore.

DR.ANDREWTHEOPHANATOSDirectorofSouthAmericas

Dr.AndrewTheophanatosisanavalarchitectwithover30 yearsofexperienceinoffshoreengineeringandprojectmanagementaroundtheworld andlatterlyinBrazil.Hespecialisesonoffshoreengineeringprojects inbothconsultancyandMWScapacitiesforservicesrelated toallrecentdeepwaterfielddevelopmentprojects.Dr.AndrewTheophanatosisbasedinRiodeJaneiro,Brazil.


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REUBEN SEGALDirectorofMiddleEast

ReubenSegalistheDirectorMiddleEastforAqualisOffshoreLtd.andhasalmost20years’experienceintheoffshoreandshippingsectorscoveringbothengineeringdesignandshipsurveying.Heisanavalarchitect,andhasextensiverecentglobalbusinessdevelopmentexperiencewithfocusondesignandconstructionofoffshoreoil&gasassets,includingMODUandMOPUunitsfromFEEDthrough toyarddelivery.Mr.Segalholdsamaster’sdegreeinEngineeringfromtheUniversityofNewcastle.Mr.SegalisaBritishcitizenandresidesinDubai,UAE.

BJØRNHÅVARDBRÆNDENDirectorofNorway

Mr.BrændenisaM.Sc.in NavalArchitectureandMarineEngineeringwithmorethan20yearsofexperienceinengineeringandoffshoresectors.Hehasspecializedindesignandworkedasprojectmanagerforprojectsinvolvingships,semisubmersibles,offshoreservicevessel,tankers andconversionstoFSU/FPSOincludingoffshoreconstructionandmarineinstallation.Thelasttenyears,hehasbeenheavilyinvolvedinbusinessdevelopmentandplayedakeyroleinbuildingupseveralcompanies.Mr.BrændenisbasedinSandefjord,Norway.

IAN BONNONManagingDirectorofOffshoreWindConsultants

Dr.BaderDiabisastructuralandglobalperformanceengineer.Hehas25yearsoffshoreengineeringglobalexperiencecoveringbothshallowanddeepwatersectorswithextensivestructuraldesignexperienceofMODUs,mooringsystems,motions,installationengineeringandfamiliaritywithshipyards.Dr.BaderDiabisbasedinHouston,USA.

SANTOSH GEORGEGroupQHSEManager

SantoshGeorgeisaspecialistQHSEconsultantandauditorwithextensiveriskanalysisexperiencecoveringshipyardsandoffshoreassetstogetherwithimplementationofGroupManagementsystemsandISOaccreditations.Mr.GeorgeisbasedinDubai,UAE.

TORI WEIRGroupLegalCounsel

ToriWeirisresponsibleforall legalandcompliancematterswithintheAqualisgroup.MsWeirhasextensiveexperienceadvisingonsecurities,corporateandM&A,andgovernanceissues.ShehaspracticedasacorporateandsecuritieslawyerintheUSandUKbeforejoiningthein-houselegalteamofaninternationaloilandgascompany.SheearnedherJD,cumlaude,fromtheUniversityofPennsylvaniaLawSchoolandherBA,cumlaude,fromWilliamsCollege.


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ANETTE AASENHeadofGroupAccounting

AnetteAasenhas17years’experiencefromaccountingandauditing,includingmanagerialpositionsincompaniessuchasPwC,MillsDA,DNOInternationalASAandStorebrandASA.SheholdsaMastersdegreeinEconomyfromtheUniversity ofAgderandhasstudiedforstateauthorizedpublicaccountantattheNorwegianSchoolofEconomicsandBusinessAdministrationinBergen,Norway.AnetteAasenjoinedAqualisASAinJanuary2015.

STUART MILLGroupCommercialDirector

StuartMillisafellowofTheRoyalInstitutionofNavalArchitects(FRINA)withover30years’experienceinship-repair,shipbuilding,FPSOconversionandmarinerelatedoilandgassectors.Hehascoreexpertisewithinprojectcontrol,costengineering,contractsandcommercialmanagementinlargeoffshoreconstructionprojects.MrMill hasexperiencefromtechnical,commercialandmanagerialpositionsatmajorshipyardsworldwide,workingonalltypes offloatingstructuresandvessels.

HEIDI LUND-NIELSENGroupRecruitmentManager

HeidiLund-NilsenisaresourcingandHRprofessionalbroadlyexperiencedinareasofin-houserecruitment,resourceplanning, HRandpersonnelmanagement.Sheisshippingeducatedwith17years’recruitingandHRgeneralistpracticeintheshipping,offshoreoil&gasandtheairlineindustries.Herexperiencecoversgeneral HRmanagement&consultancy,policies,proceduresandfulllifecyclerecruitmentacrossalllevelsinmultinationalenvironmentsfromlargetosmallownermanagedbusinesses.Mslund-NielsenisbasedinBahrain.

AqualisASA–AnnualReport2014OURBUSINESS

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CORPORATE GOVERNANCE

1. Implementation and reporting of Corporate Governance InaccordancewiththeNorwegianCodeofPracticeforCorporateGovernance(NCPCG),cf.thelatestversiondated30October2014,theBoardofDirectorsofAqualisASAhaspreparedaCorporateGovernancepolicydocument.AqualisaspirestofollowtheNCPCGascloselyaspossibleandinsituationswheretheCompany’spracticemightdivergefromthecode,anexplanationorcommentwillbeprovided.

TheCompany’scompliancewiththeCodeisdetailedinthisreportandsectionnumbersrefertotheCode’sarticles.Aqualis’CorporateGovernanceguidelinesarepublishedinfullattheCompany’swebsite.

2. BusinessAqualisASAisaNorwegianpubliccompanyfocusingonbuildingaprofitableandsuccessfulbusinessbasedonitskeycompetenceswithinthemarineandoffshoreoil,gasandrenewablessectorsglobally.AqualisASAoperatesundertwobrands:AqualisOffshoreandOffshoreWindConsultants:

• AqualisOffshoreisaspecializedoffshoremarineandengineeringconsultancyfirm,focusingontheshallowanddeep-wateroffshoresegmentsoftheoilandgasindustry.Itscoreservicesincludesconcept,FEEDandbasicdesignengineeringforupgradesandconversionofjack-ups,FPSOsandrigs,marinewarrantyservices,transportationandinstallation,rigmoving,dynamicpositioning,constructionsupervisionandduediligenceservices.

• OffshoreWindConsultantsisagloballyfocusedconsultancyprovidingconsultancyservicestotheoffshorerenewablesindustry.

ThescopeofAqualis’businessisdefinedinitsArticlesofAssociation,publishedontheCompany’swebsite.TheCompany’sobjectivesandstrategiesarepresentedintheDirectors’report.

3. Equity and dividendsEquityTheCompany’sconsolidatedequityat31December2014wasUSD44.4million,represent-inganequityratioof86%.TheBoardaimsto

maintainanequityratiothatremainssatisfactoryinlightoftheCompany'sgoals,strategyandriskprofile.

Shares and share capitalAttheendof2014Aqualishad43190544ordinarysharesoutstandingwithaparvalueofNOK0.10pershare(seenote12totheFinancialStatements).TheCompanyhasoneshareclass,andeachsharecarriesonevote.At31December2014,theCompanyhad2,167shareholders,and36.1%ofthesharesoftheCompanywereheldbyforeignregisteredshareholders.

Increases in share capitalTheBoardwillonlyproposeincreasesinthesharecapitalwhenthisisbeneficialoverthelongtermfortheshareholdersoftheCompany.

TheBoardwasgivenauthoritybythesharehold-ersattheExtraordinaryGeneralMeetingheldon24July2014toincreasethesharecapitalwithuptoNOK2,159,527.20throughoneormoreshareissues.Thisauthorisationexpiresonthedateofthe2015annualgeneralmeeting,howevernolaterthan30June2015.Undertheauthorization

theCompanymayissuesharesforthepurposesofinvestments/M&Aorgeneralcorporatepurposes.Uptofivepercentoftheauthorizationcanbeissuedinconnectionwiththesharepurchaseprogramsforthecompany’semployees.

Aqualishasamandatetopurchaseitsownshares,limitedto10%ofthetotalsharesoutstanding.Themandateisgivenfortwoyears,inaccordancewiththeNorwegianPublicLimitedLiabilityCompaniesAct.

Dividend policyItistheCompany’sobjectivetogeneratereturnstotheshareholdersintheformofdividendsandshareappreciation,whichisatleastonthesamelevelasotherinvestmentpossibilitieswithcomparablerisk.Thisshouldbeachieved,firstandforemost,throughstrongandprofitablegrowthwithintheCompany’sbusinessareas.TosupportthisgrowththeCompany’searningswillbereinvestedintheCompany,andnodividendisexpectedtobepaidinthenearfuturewhilethecompanyisstillinitsbuild-upphase.

Corporate Governance regulates the relationship between the Company’s management, its Board of Directors and the shareholders of the Company. Aqualis believes that good corporate governance is an important component of sustainable business conduct and long-term value creation.


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4. Equal treatment of shareholders and transactions with close associatesTheCompanyhasonlyoneclassofsharesandtherearenovotingrestrictions.Anypotentialpurchaseofownsharesshallbecarriedoutviaastockexchangeatmarketprices.

WheretheBoardresolvestocarryoutanincreaseinsharecapitalonthebasisofanauthoritygiventotheBoard,andwaivethepre-emptionrightsofexistingshareholders,thejustificationwillbepublicallydisclosedinconnectionwiththeincreaseinsharecapital.

Transactionswithrelatedpartiesshallbeatarm’slengthandatfairvaluewhich,intheabsenceofanyotherpertinentfactors,shallbeatmarketvalue.Allmaterialtransactionswithrelatedpartiesshallbevaluedbyanindependentthirdparty,unlessassessedandresolveduponbytheGeneralMeeting.Transactionswithrelatedpartiesaredescribedinnote21and22totheFinancialStatements.

5. Freely negotiable sharesTherearenolimitationsontradingofsharesandvotingrightsintheCompanyandeachsharegivestherighttoonevoteattheCompany'sGeneralMeeting.

6. General MeetingAnnual General MeetingTheGeneralMeetingistheCompany’ssupremebodyandelectsthemembersoftheBoard.

The call for the General MeetingTheCompanyobservestheminimumnoticeperiodsetoutintheNorwegianPublicLimitedCompanies

Act,i.e.providing21daysnotice.ThecallfortheGeneralMeetingisissuedinwritingviamail,orelectronicallythroughVPS,toallshareholders withregisteredaddresses.Transmittedwiththesummonsaredocuments,whichhavesufficientdetailfortheshareholderstotakeapositiononallthecasestobeconsidered.However,documentsrelatingtomatterswhichshallbeconsideredatageneralmeetingneednotbesenttothesharehold-ersifthedocumentshavebeenmadeavailabletotheshareholdersontheCompany'swebsite.Thesummonsalsoaddressestheshareholder’srighttoproposeresolutionstothematterstoberesolveduponattheGeneralMeeting,andgivesinformationregardingtherequiredstepsnecessarytoexercisetheshareholder’srights.ThesummonsandthesaiddocumentsaremadeavailableontheCompany’sweb-siteatleast21dayspriortotherelevantGeneralMeeting.

ToregisterfortheGeneralMeeting,ashare-holderisrequestedtosubmitaconfirmationinwritingviamailorfax,orbyelectronicregistra-tiondirectlythroughVPS.

Voting at the General MeetingAnyshareholderisentitledtovoteattheGeneralMeeting,andtocastavote,ashare-holdermustattendorgiveaproxytosomeonewhoisattending.TheproxyformwillbedistributedwiththesummonstotheGeneralMeeting.Aproxywillonlybeacceptedifsubmittedbymail,fax,ore-mail(providedtheproxyisascanneddocumentwithsignature),orregistereddirectlythroughVPS.ItisnotpossibletovoteviatheInternetorinanyotherway.ForshareholderswhocannotattendtheGeneralMeeting,theBoardwillnominatetheChairman

andtheCEOtovoteonbehalfofshareholdersastheirproxy.Totheextentpossible,theCompanyusesaformfortheappointmentofaproxy,whichallowsseparatevotinginstructionstobegivenforeachmattertobeconsideredbythemeetingandforeachofthecandidatesnominatedforelection.

The attendance at the General MeetingTheBoardandthemanagementoftheCompanyseektofacilitatethelargestpossibleattendanceattheGeneralMeeting.ThechairmanoftheBoard,thechairmanoftheelectioncommitteeandtheCompany’sauditorwillalwaysattendtheGeneralMeeting.OthermembersoftheBoardandtheelectioncommitteewillalsoattendwheneverpractical.

Chairman of the meeting and minutesThechairmanoftheBoard,oranotherpersonnominatedbytheBoard,willdeclaretheGeneralMeetingforopen.ConsideringtheCompany’sorganisationandshareholderstructuretheCompanyconsidersitunnecessarytoappointanindependentchairmanfortheGeneralMeeting,andthistaskwillforpracticalpurposesnormallybeperformedbytheChairmanoftheBoard.TheminutesfromtheGeneralMeetingaremadeavailableattheCompany’swebsiteonthedayfollowingtheGeneralMeeting.

7. Election CommitteeTheElectionCommitteeiselectedbytheGeneralMeeting.Inaddition,theChairmanoftheElectionCommitteeisalsoappointedbytheGeneralMeeting.ThemembersoftheElectionCommitteeshouldbeselectedtoensurethereisabroadrepresentationofshareholders’interests.

TheElectionCommittee’staskistoproposecandidatesforelectiontotheBoardofDirectorsandtosuggestremunerationfortheBoard.Therecommendationsshallbejustified.TheElectionCommitteecurrentlyconsistsoftwomembers,whoshallbeshareholdersorrepresentativesoftheshareholders,andnomorethanonememberoftheElectionCommitteeshallbeamember oftheBoard.ThemembersoftheElectionCommitteeareelectedforaperiodoftwoyearsatatime.AnyproposalstotheElectionCommitteeshouldbesubmittedinwritingtotheChairmanoftheElectionCommitteenolaterthan15April.Furtherinformationontheduties oftheElectionCommitteecanbefoundintheInstructionstotheElectionCommittee,whichhasbeenapprovedbytheGeneralMeetingandmadeavailableontheCompany’swebsite.

AqualisisnotawareoftheexistenceofanyagreementsorbusinesspartnershipsbetweentheCompanyandanythirdpartiesinwhichmembersofitsElectionCommitteehavedirectorindirectinterests.TheElectionCommittee’scompositionisdesignedtomaintainitsindependencefromtheCompany’sadministration. TheElectionCommitteecurrentlyconsistsofthefollowingmembers:

• EigilStraySpetalen,Chairman(membersince2013;upforelectionin2015)

• MartinNes(membersince2013;upforelectionin2015,CEOofFerncliff)

FurtherinformationonthemembershipisavailableontheCompany’swebpage.


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8. The Board of Directors – composition and independenceTheChairmanandtheothermembersoftheBoardareelectedforaperiodoftwoyearsatatimeandcurrentlycomprisesfivemembers.AllmembersoftheBoardmaybere-electedforaperiodofuptotwoyearsatatime.

BoardmemberØysteinStraySpetalenistheownerofFerncliffTIHAS,whichdirectlyorindirectlyholdsapprox.23.9%ofthesharesintheCompany,andtheChairman,GlenRødland,isa50%ownerofGrossManagement,whichholdsapprox.5.4%ofthesharesintheCompany.BoardmemberReubenSegal,istheDirectorMiddleEastforAqualisOffshore.Mr.ReubenSegalisbothamemberoftheCompany’sBoardofDirectorsandamemberoftheCompany’sexecutivemanagementteamasDirector,MiddleEast.ThebackgroundforthisisthatMr.SegalisasignificantshareholderinCompany,andalsorepresentstheinterestofotheremployeesthatwillholdsharesintheCompany.Approximately

23%ofthesharesintheCompanyarecurrentlyestimatedtobeheldbyemployees.

InelectingmemberstotheBoard,itisempha-sisedthattheBoardhastherequiredcompe-tencetoindependentlyevaluatethecasespresentedbytheExecutiveManagementaswellastheCompany'soperations.Itisalsoconsid-eredimportantthattheBoardfunctionswellasabodyofcolleagues.

ThecurrentcompositionoftheBoard,includingBoardmembers’shareholdinginAqualisperthedateofthisannualreportisdetailedbelow.

ThefemalerepresentationamongshareholderelectedBoardmembersis40%.

9. The work of the BoardTheBoard’sworkfollowsanannualplananditconductsanannualself-evaluationofitsperformanceandexpertise,whichismadeavailabletotheElectionCommittee.Theannual

planisdevisedaftereachAnnualGeneralMeeting,andincludesthenumberofmeetingstobeheldandspecifictaskstobehandledatthemeetings.TypicaltasksthatarehandledbytheBoardduringtheyearincludesanannualstrategicreview,reviewandapprovalofthefollowingyear’sbudget,evaluationofmanage-mentandcompetencerequired,andcontinuousfinancialandriskreviewsbasedonbudgetorprognosis.TheBoardhasheldsevenmeetingssincethecompanywaslistedinAugust2014.AllBoardmembersattendedalltheBoardmeetingsduringthatperiod,eitherinpersonorbyphone.

Audit CommitteeInaccordancewiththeCompany’sArticlesofAssociation,theCompanyhaselectedtohavethefullBoardconstitutetheAuditCommittee.TheBoardisoftheopinionthatthiswillbeinthebestinterestoftheCompanyinaninitialstageasitwillallowtheCompanytoutilisethecompetenceofalltheboardmembersinthecommitteework.ReubenSegal,amemberof

theexecutivemanagementteam,willdisqualifyhimselffromparticipatingintheauditcommittee.

Remuneration CommitteeTheremunerationcommittee,appointedbytheBoard,makesproposalstotheBoardontheemploymenttermsandconditionsandtotalremunerationoftheCEO,andothermembersoftheExecutiveManagement,aswellasthedetailsoftheemployeeshareoptionplan.Theseproposalsarealsorelevantforothermanage-mententitledtovariablesalarypayments.Currently,theCompany’sfullBoardconstitutestheremunerationcommittee.

10. Risk management and internal controlTheBoardandtheExecutiveManagementshallatalltimesseetothattheCompanyhasadequatesystemsandinternalcontrolroutinestohandleanyrisksrelevanttotheCompanyanditsbusiness,hereunderthattheCompany’sethicalguidelines,corporatevaluesandguidelinesforcorporatesocialresponsibilityaremaintainedandsafeguarded.

TheBoardcarriesoutanannualdetailedreviewoftheCompany’smostimportantareasofexposuretoriskanditsinternalcontrolsystems.Theriskareas,changesinrisklevelsandhowtheriskisbeingmanaged,areontheagendaateachregularBoardmeeting.

Aqualis,throughitssubsidiariesAqualisOffshore,TristeinandOffshoreWindConsultants,providesmarineandengineeringservicestotheoffshoresector.Theseservicesareprovidedincompliancewithrelevantinternationalandlocal

The Board of Directors – composition and independence

NAMEPOSITIONIN THEBOARD

MEMBER SINCE(YEAR)

UPFOR ELECTION(YEAR)

COMMITTEE MEMBERSHIP

SHAREHOLDING INAQUALIS*

GlenRødland Chairman 2014 2016 2,437,056(1)

YvonneL.Sandvold Member 2013 2015 • -ReubenSegal Member 2014 2016 704,128(2)

ØysteinStraySpetalen Member 2013 2015 10,322,742(3)

SynneSyrrist Member 2013 2015 -

*AtthedateoftheAnnualReport

1. ThesharesareownedthroughGrossManagementAS,whichisjointlycontrolledbyMrRødlandandMrSpetalen.MrRødlandisalsothechairmanofStrataMarine&OffshoreAS,whichowns5,450,973sharesinAqualis.

2.ThesharesareownedthroughAmAnMarineLtd.l3.ThesharesareownedthroughFerncliffTIHASandassociatedcompanies,includingGrossManagementAS.


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lawsandregulationsgoverningthisindustry.ThecompanyhasadoptedaCorporateCodeofConductandaQHSEsystemgoverningdailybusinesspractices.

11. Remuneration of the Board of DirectorsRemunerationofBoardmembersshallbereasonableandbasedontheBoard'sresponsibili-ties,work,timeinvestedandthecomplexityofthebusiness.TheremunerationneedstobesufficienttoattractbothNorwegianandforeignBoardmemberswiththerightexpertiseandcompe-tence.ThecompensationshallbeafixedannualamountandshallbedeterminedbytheAnnualGeneralMeetingbasedonaproposalfromtheElectionCommittee.TheremunerationfortheBoardin2014isforaperiodof5monthsandwillbepaidin2015afterapprovalbytheAGM.

FormoreinformationonremunerationoftheBoardseenote12totheFinancialStatementsforAqualisASA.

12. Remuneration of the Executive ManagementTheBoarddecidesthesalaryandothercompensationoftheCEO,pursuanttorelevantlawsandregulations,havingreferencestothemainprinciplesforthecompensationpolicyoftheCompanyaswellasmarketsnormsandperformanceoftheindividual.

FormoreinformationonremunerationoftheCEOandothermembersofExecutiveManagementseenote12totheFinancialStatementsforAqualisASAandthestatementregardingthedeterminationofsalaryandotherremunerationtoExecutiveManagement.

13. Information and communicationAqualisisstronglycommittedtomaintaininganopendialoguewithitsshareholders,potentialinvestors,analysts,investmentbanksandthefinancialmarketsingeneral.OurgoalisforthesharepricetoreflecttheunderlyingvalueoftheCompanybyprovidingallprice-relevantinformationtothemarketonatimelybasis.

TheBoardofDirectorsandtheExecutiveManagementoftheCompanyassignconsider-ableimportancetogivingtheshareholdersandthefinancialmarketingeneraltimely,relevantandcurrentinformationabouttheCompanyanditsactivities,whilemaintainingsoundcommer-cialjudgementinrespectofanyinformationwhich,ifrevealedtocompetitors,couldadverselyinfluencethevalueoftheCompany.

TheCEOandCFOareresponsiblefortheCompany’sinvestorrelationsactivitiesandallcommunicationwiththecapitalmarkets,andallinformationisprovidedinaccordancewiththelawsandregulationsimposedbytheNorwegianSecuritiesTradingActandtheOsloStockExchange.

RegularinformationispublishedintheformofAnnualReportsandinterimreportsandpresentations.AqualisdistributesallinformationrelevanttothesharepricetotheOsloStockExchangeinaccordancewithapplicableregulations.Suchinformationisdistributedwithoutdelayandsimultaneouslytothecapitalmarket,themediaandontheCompanywebsite.

TheCompanypublishesallinformationconcerningtheAnnualGeneralMeeting,quarterlyreportsandpresentationsandother

presentationsontheCompanywebsite,assoonastheyaremadepublicallyavailable.

TheExecutiveManagementholdsregularmeetingswithshareholdersandotherinvestors,andpresentatdomesticandinternationalinvestorconferences.

14. Take-oversTheBoardshallnotwithoutspecificreasonsattempttohinderorexacerbateanyattempttosubmitatakeoverbidfortheCompany'sactivitiesorshares,hereundermakeuseofanyproxyfortheissueofnewsharesintheCompany.Insituationsoftakeoverorrestruc-turing,itistheBoard'sparticularresponsibilitytoascertainthatallshareholders'valuesandinterestsareprotected.Ifatake-overofferismade,theBoardwillissueastatementmakingarecommendationastowhethershareholdersshouldorshouldnotaccepttheoffer.TheBoardwillarrangeavaluationfromanindepend-entexpertthatshallbemadepublicnolaterthanthedisclosureoftheBoard’srecommendation.

15. AuditorErnst&YoungASwasappointedastheCompany’sauditorson2June2014.TheAuditorparticipatesinmeetingsoftheAuditCommitteeandintheBoardmeetingthatapprovestheannualfinancialstatements,andotherwisewhenrequired.TheAuditormeetswiththeBoard,withouttheCompany’sExecutiveManagementbeingpresent,atleastonceayear.

TheAuditoreachyearpresentsaplanfortheimplementationoftheauditwork,andfollowingtheannualstatutoryauditpresentsareviewof

theCompany’sinternalcontrolprocedures,includingidentifiedweaknessesandproposalsforimprovement.

RemunerationtotheAuditorisdisclosedin note11totheFinancialStatements.

ThefullCorporateGovernancePolicyispublishedonAqualis’homepage: www.aqualis.no.


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DIRECTORS' REPORT FOR 2014In August 2014, the specialized marine and offshore engineering consultancy business of what was then called Aqualis ASA (now Weifa ASA), was spun off and listed on the Oslo stock exchange as a separate company under the temporary name Aqualis Offshore Holding ASA. Subsequent to the listing, Aqualis Offshore Holding ASA changed its name to Aqualis ASA (OSE: AQUA).

Although the listing as a dedicated marine and offshore consultancy business did not represent a material operational change for the company’s employees or customers, it provided existing and potential shareholders with a much clearer investment profile for Aqualis ASA.

Prior to the spin-off, Aqualis ASA completed two strategically important acquisitions in Tristein AS, a leading provider of marine operations for the offshore oil, gas and wind industries, and Offshore Wind Consultants Limited, a leading provider of consultancy services to the offshore renewables industry.

AQUALIS ASA: SPUN OFF AND SEPARATELY LISTED

AqualisOffshoreHoldingASA(laterrenamedAqualisASA)wasincorporated2June2014asawholly-ownedsubsidiaryofAqualisASA(laterrenamedWeifaASA),apubliclylistedcompanyontheOsloStockExchangewhichoperatedintheoffshoreandmarineindustryaswellasthepharmaceuticalindustry.Theplanwastospin-offAqualisOffshoreHoldingASAandlistasadedicatedmarineandoffshoreengineeringconsultancyontheOslostockexchange(OSE).

TofacilitatetheSpin-Off,AqualisASA(nowWeifaASA)andAqualisOffshoreHoldingASA(NowAqualisASA)enteredintoandexecuteda

TransferAgreementof24July2014,whereinallthesharesinAqualisOffshoreLtd,TristeinASandOffshoreWindConsultantsLtdweretransferredfromAqualisASAtoAqualisOffshoreHoldingASAtogetherwithNOK65,000,000(USD10.8million)incash,NOK49,944,965(USD8.3million)ininterestbearingloanstoAqualisOffshoreLtdanditssubsidiaries,andNOK55,000,000(USD9.2million)infinancialassetsrepresentingapartinterestintheprepaymentinrelationtoAqualisASA’sacquisitionofWeifaAS.

Thepurchaseprice(equityvalue)forthethreecompanieswereNOK125,418,165,whereasthesharesinAqualisOffshoreLtdwereallocatedNOK70,000,000,thesharesinTristeinASwereallocatedNOK46,750,000andthesharesin

OffshoreWindConsultantsLtdwereallocatedNOK8,668,165.

13August2014,AqualisOffshoreHoldingASAwaslistedonOSE.ThecompanysubsequentlychangeditsnametoAqualisASA(ticker:AQUA)on20August2014.ThesharesbelongtotheOBMatchliquiditycategoryandtheyareregisteredintheNorwegianCentralSecuritiesDepository(VPS)withNordeaBankIssuerServiceasregistrar.ThesharescarrythesecuritiesnumberISINNO0010715394.

TheCompany’stotalcapitalisationat30December2014wasNOK326million,basedonaclosingsharepriceonthatdayofNOK7.55.

Principal shareholdersThetop20shareholdersofAqualisarepredomi-nantlylargeNorwegianandinternationalinvestors,andmanagementandemployeesoftheCompany.Pleaseseenote10inAqualisASAforatableofthe20largestshareholders.

AQUALIS ASA: A FULLY-FLEDGED OFFSHORE AND MARINE ENGINEERING CONSULTANCY

Followingthespin-offfromAqualisASA(nowWeifaASA),theAqualisGroupconstitutedthreeseparatebusinesses:AqualisOffshoreLtdandsubsidiaries(AqualisOffshoreGroup),TristeinAS(Tristein)andOffshoreWindConsultantsLtd


25

(OffshoreWindConsultants).From1January2015,TristeinASwasmergedintotheoperationofAqualisOffshoreAS.Thesebusinessesoperatewithintwoprimaryoffshoreindustrysegments:oil&gasandrenewables.

Oil & GasAqualisASA’soffshoreoilandgasactivitiesarecarriedoutbyAqualisOffshore.Thecompanyprovidesmarineandengineeringservicestotheoffshoreoilandgasindustryworldwide.Itsmulti-disciplinaryengineeringandmarineteamisrecognizedintheindustryfortheircompetenceandexperience.AqualisOffshoreworkscloselywithclientstounderstandtheirrequirements,identifysolutionsandtoexecutetheirprojectsandmarineoperationsinatimely,costeffectiveandsafemanner.

RenewablesAqualisASAoffersservicesintheoffshorerenewablessectorthroughLondon-basedOffshoreWindConsultantsandNorway-basedAqualisOffshoreAS.

OffshoreWindConsultants,basedinLondon,England,isawell-recognisedglobalproviderofindependentconsultancyservicesforoffshorewindprojects.Thecompany’scoreteampossessstrongindustryexpertisewhichdatesbacktothefirstoffshorewindfarmdevelopmentprojectintheUK.Sincethen,thekeymembersofOffshoreWindConsultant’steamhavebeeninvolvedinmanyofthemajoroffshorewindprojectswhichhavebeendevelopedintheUKandtherestofEurope.TheteamalsohasestablishedreputationsinbothNorthAmericaandtheFarEast.

The combined Aqualis GroupTheAqualisGroup–consistingofAqualisOffshoreandOffshoreWindConsultants–hasasignificantglobalcustomerbaseincludingseveralmajoroilcompanies,rigownersandoperators,vesselowners,offshorecontractors,underwritersandfinancialinstitutions.

Withinthepast18months,theAqualisGrouphasestablishedapresenceinallmajorshippingandoffshoreenergycentres.ThecompanyisheadquarteredinLondon,UK,andhasregionalsubsidiariesinthefollowinglocations:Norway(Oslo/Sandefjord,AskerandKristiansund),Brazil(RiodeJaneiro),Mexico(MexicoCity),USA(Houston),Bahrain(Manama),UAE(DubaiandAbuDhabi),KingdomofSaudiArabia(Dammam),SingaporeandChina(Shanghai).ThecompanyisalsointheprocessofsettingupfurthersubsidiariesinQatarandMalaysia.Thisglobalpresenceallowsthebusinesstorespondquicklywhenhigh-endmarineorengineeringconsul-tancyisrequired.Althoughsomeoftheofficeshavespecialfocusoncertainareasofoperations,allserviceofferingsareprovidedacrossallregions.

TheAqualisGroup’stargetmarketsaretheoffshoreoilandgas,marineandrenewablessegments,inwhichitfocusesonhigh-endnicheconsultancy.TheGroup’sstrategyistoofferitsspecialistmarineandengineeringconsultancyservicesthroughagrowingnetworkofglobaloffices.Asitexpandsglobally,Aqualispursuesitshighgrowthambitionsprimarilyfocusingondevelopingeconomiesandemergingmarkets.TheGroup’sstrategyistoexpanditsmarineandoffshoreactivitiesthroughtheestablishmentof

newofficesworld-wide,andthroughpotentialacquisitionsofsimilarbusinessessuchasTristeinandOffshoreWindConsultants.

Aqualishasarapidlygrowingworkforce,andemployed196fulltimeequivalentpeopleatyear-end2014,anincreasefrom78employeesattheendof2013.Throughout2014,Aqualishasobservedanoticeableincreaseinavailablehigh-qualityseniorengineersandmarinersinthemarket.Thecompanyaimstocapitalizeonthisandcontinuetoselectivelypickstaffthatwilladdvaluetothebusiness.

Thecompanyhasnoresearchanddevelopmentactivities.

PRESENTATION OF FINANCIAL STATEMENTS

(Lastyear'sfiguresinbrackets)

Profit and lossFor2014,totaloperatingincomeamountedtoUSD31.9million(USD2.2million).Totaloperatingcostsfor2014wereUSD34million(USD3.2million).

EBITfor2014wasnegativeatUSD2.1million(USD-0.9million),includingUSD1.4millioninone-offcostsrelatedtorestructuringandlistingofAqualisASA.

ProfitaftertaxwasnegativeatUSD0.3million(USD-0.9million),whichincludesunrealizedforeignexchangegainofUSD2.1million.

Cash flowAqualishadanetcashflowfromoperatingactivitiesatUSD0.2millionin2014(USD-1.7million).

NetcashflowfromfinancingactivitiesendedatUSD19.4million(USD1.1million),including10.6millioninproceedsfromshareissues.

Asof31December2014,thegrouphadcashandcashequivalentsofUSD21.8million(USD0.8million).

Balance sheet and financial situationAt31December2014,totalassetsamountedtoUSD51.4million(USD19.9million),andtheCompanyhadnointerest-bearingdebt.

CashandcashequivalentsamountedtoUSD21.8millionat31December2014(USD0.8million),representing42%oftotalassets.

Asof31December2014,totalequityamountedtoUSD44.4million(USD12.3million).Theequityratioatyear-endwas86%.

TheConsolidatedFinancialStatementsofAqualisASAhavebeenpreparedinaccordancewiththeInternationalFinancialReportingStandards(IFRS)asadoptedbytheEUandarevalidasat31December2014.TheFinancialStatementshavebeenpreparedunderthehistoricalcostconvention.

BasedonAqualis’cashpositionat31December2014,andtheestimatednetcashflowfor2015,Aqualishasthenecessaryfundstomeetitscontractualobligationsforthenext12months.


26

InaccordancewiththeNorwegianaccountingact§3-3a,theBoardofDirectorsconfirmthattheFinancialStatementshavebeenpreparedundertheassumptionofgoingconcernandthatthisassumptionisvalid.Furtherinformationongoingconcernprinciplescanbefoundinnote2 totheFinancialStatements.

EVENTS AFTER THE BALANCE SHEET DATE

AqualisconcludedadelayedrenewablesprojectinJanuary2015.Cashcompensationofapproxi-matelyUSD405kwasreceivedinJanuary2015.Thefairvalueofthiscompensationwasrecognizedinthefinancialstatementsinrelationtopurchasepriceallocationatthetimeofacquisitionandwillconsequentlyhavenoeffectontheconsolidatedprofitandlossin2015.

TristeinASmergedintoAqualisOffshoreAS–inordertostreamlinetheNorwegianoperations.Effectivedateofthemergeris1Jan2015.

ORGANISATIONAL MATTERS

OrganisationAttheendof2014,theAqualisGrouphadatotalworkforceof196fulltimeequivalentpeople,includingcontractorsona100%utilisationequivalentbasis.

DavidWellstookontheroleofCEOofAqualisOffshoreHoldingASA(laterrenamedAqualisASA)uponitsincorporationon17September2014.

Effectivefrom1January2015,TristeinASmergedintoAqualisOffshoreAS,theNorwegianoperationofAqualis,inordertostreamlinetheNorwegianoperations.

Board of DirectorsAsthe“new”AqualisASAwaslistedasaseparatecompanyonOSEinAugust2014,anewBoardofDirectorshadtobeformallyelectedbytheshareholders.Allfiveelectedboardmemberswerepriorboardmembersofthe“old”AqualisASA(nowWeifaASA)priortothespin-off.TheBoardconsistsofGlenRødland(Chairman),YvonneL.Sandvold,ReubenSegal,ØysteinStraySpetalenandSynneSyrrist.ThedeputyboardmemberisMartinNes.

Equal opportunitiesInlinewithNorwegianlegislation,Aqualisforbidsanydiscriminationbecauseofsexualorientation,genderidentity,genderexpression,ethnicity,religion,religiousbeliefordisabilities.

Aqualishasestablishedpracticestoensureequalopportunitiesbetweenfemaleandmaleemployees,aswellasbetweendifferentraces.ThelargemajorityofAqualis’workforceareeitheroffshorestaff,marinersoron-siteworkers–whichareallprofessionalgroupsthathistoricallyhavehadasignificantlyhigherproportionmalemembersofstaff.Thatisstillthecaseinboththeoil&gasandrenewablesindustries.However,attheendof2014,Aqualis’totalworkforceconsistedofapproximately15percentfemaleemployees,whichisonparwiththeindustryaverageintheaforementionedsectors.

IthasbeenafocusfortheAqualisGrouptohaveabettergenderbalanceintheexecutivemanagementteam.In2014,thecompanyhasappointedthreefemalemanagerstotheexecutivemanagementteam.

TheBoardofDirectorscurrentlyhastwofemalemembersoutoffive.TheBoarddoesnotconsideritnecessarytotakefurthermeasures toensureequalopportunities.

Health, safety and environmentAqualisiscommittedtoensuringthesafetyofitsoperationsandtoprotectingitspeopleandthenaturalenvironmentfromharm.ThepeopleemployedintheAqualisGroupareourmostimportantresourceforsuccess,andtheCompanystrivetocreateahealthyandsafeenvironmentforallemployeesandcontractors.QHSEisanintegralelementofitsbusiness,andsystemsareinplacetomonitorandfollow-upanyaccidentincidents.In2014,Aqualiscontinueditsexcellentpersonnelsafetyrecordwithnoaccidentsorlosttimeincidents(LTIs).

ThetotalsickleaveforAqualisASAfor2014was171days,ofwhichnonewereduetooccupationalillness.Thetotalsickleaveequatestoapproxi-mately1.9%ofthetotalworkinghours,comparedto2.3%inthepreviousyear.

TheCompanydoesnothaveanyproductionorstoragefacilities.ItistheBoard’sviewthattheCompany’sbusinessdoesnotmateriallycontaminatetheexternalenvironment.

Incentive programmesAsof31December2014,therewere750000

shareoptionsoutstanding.AllarerelatedtoshareoptionsissuedtokeypersonnelinTristeinASandOffshoreWindConsultantsLtdatWeifaASA’s(formerAqualisASA)acquisitionofTristein

ASandOffshoreWindConsultantsLtd,whichhavebeentransferredtoAqualisASA.Theexercisepricesareadjustedaccordingtotheoptionagreements,inlinewithOSEderivativesregulations,inordertoreflecttherestructuringthathastakenplace.

TheBoardhasapprovedanemployeesharepurchaseplan,whichthecompanyisintheprocessofimplementing.Underthesharepurchaseplan,employeescanbuysharesintheCompanyatadiscounttotheprevailingmarketprice,eitherthroughauthorizedbutunissuedshares,treasurysharesorsharespurchasedbyAqualisASAontheopenmarketorotherwise.TheaggregatenumberofsharesoverwhichtheBoardmaygrantinacalendaryear,shallnotexceedfivepercent(5%)oftheissuedsharesoftheCompanypriortotheissueofanynewshares.Sharespurchasedunderthesharepurchaseplanwillbesubjecttoalock-upperiod.Asofthedateofthisannualreport,noshareshavebeengrantedunderthesharepurchaseplan.

Performance-basedpayisseenasanattractivepartofthetotalremunerationtoemployees,withthemainaimofencouragingastrongandsustainableperformance-basedculturethatsupportsgrowthinshareholdervalue.TheAqualisGrouphasanannualvariablepayschemethatisawardedtoallemployeesonthebasisofthefinancialperformanceachievedbythegroup.


27

TheBoardevaluatesthegroup’sperformanceagainstdefinedtargetsanddecidesthesizeoftheannualbonuspaymenttoallemployees.

RISKS

Risk exposure and risk management Aqualis’regularbusinessactivitiesentailexposuretovarioustypesofrisk.TheCompanyproactivelymanagessuchrisksandtheBoardregularlyanalysesitsoperationsandpotentialriskfactorsandtakesmeasurestoreduceriskexposure.AqualisplacesastrongemphasisonQualityAssuranceandhasqualitysystemsimplemented,orunderimplementation,inlinewiththerequirementsforitsbusinessoperations.

Operational riskThefuturegrowthandprofitabilityoftheAqualisGroupwilllargelydependonitsabilitytoattractnewclients,recruitaskilledworkforce,anditsabilitytocarryoutitsworkeffectivelyandatahighstandard.Akeypartthedevelop-mentofAqualisistheretentionandrecruitmentofkeypersonnel.Thelossofanyofthecurrentmembersofitsseniormanagement,orotherkeypersonnel,ortheinabilitytoattractorretainasufficientnumberofqualifiedemployees,couldadverselyaffectitsbusinessandresultsofoperations.

TheGroup’soperationswillovertimedependonthelevelofactivityandcapitalspendingbyoil&gasandoffshorecompanies.ThedemandfortheGroup’sservicesisaffectedbydeclinesinmaritimeandoffshoreactivityassociatedwithdepressedoil&gasprices.Eventheperceivedriskofadeclineintheoilornaturalgasprices

oftencausesexplorationandproductioncompaniestoreducetheirspending.Thereisariskassociatedwithalong-termdropintheoilprice,affectingtheprofitabilityofthedevelop-mentofnewoffshorefields.Anyprolongedperiodsofreducedcapitalexpendituresbyoil&gasandoffshorecompaniescouldreducethedemandfortheservicesofferedbytheGroup.

Financial riskTheCompanyisprincipallyexposedtointerestraterisk,creditrisk,liquidityriskandforeigncurrencyrisk.

Interest rate risk Aqualishasnointerest-bearingdebtasper31December2014.

Credit riskTheGrouphasnomajorfinancialassetsotherthancashandcashequivalentsandtradereceivables.CashandcashequivalentsandtradereceivablesamountedtoUSD21.8millionandUSD5.3millionrespectivelyat31December2014.Thecreditriskrelatingtotheseassetsarisesfromdefaultofthecounterparty.Thecounterpartiesforcashdepositsarecommercialbanks.ThetradereceivablesrelatetocustomersofAqualisOffshore,andthecompanyistightlymanagingthesereceivables.TheCompany’soverallcreditriskisconsideredmoderatetolow.

Liquidity riskThegroup’spolicyistomaintainsatisfactoryliquidityatthecorporatelevel.TheGrouphasaverystrongcashpositionandnointeresting-bearingdebtatyear-end.TheGroup’scashandcashequivalentsofUSD21.8millionat31December2014.Basedonthecurrentcash

position,theCompanyassessestheliquidityrisktobelow.

Foreign currency riskTheCompany'sexposuretotheriskofchangesinforeignexchangeratesrelatesprimarilytheCompany'soperatingactivities(whenrevenueorexpenseisdenominatedinadifferentcurrencyfromtheCompany'spresentationcurrency),theCompany'snetinvestmentsinforeignsubsidiar-ies,andtheCompany'sforeigncurrencydenominatedcashdeposits.At31December2014theCompanyhadanunrealizedforeignexchangegainofUSD2.1million.

Furtherdetailsonfinancialriskcanbefoundinnote24totheFinancialStatements.

CORPORATE SOCIAL RESPONSIBILITY

Aqualisiscommittedtoconductitsbusinessinamannerthatadherestothehighestindustrystandardswithinitsbusinesssegments,andstrictlyinaccordancewithinternationalandlocallawsandregulationsintheregionswheretheCompanyoperates.

StandardoperatingproceduresandotherpolicyguidelinescoveringtheconductoftheCompanyanditsemployeesareinplacefortheholdingcompany,AqualisASA.Aqualishasestablishedaformalcodeofconduct,aswellasetofQHSEpoliciesandprocedures,includingasystemforreportingandmonitoringworkplaceaccidents.Keysafetyindicatorsaremonitoredandreportedonamonthlybasis.TheCompanyiscommittedtocreatingaworkculturewherepreventionofharmispriorityforeveryone.

TheCompanyiscommittedtoaworkenviron-mentwhereallemployeesfeelsafeandarevaluedforthediversitytheybringtothebusiness.TheCompanyhonourdomesticandinternationallyacceptedlabourstandardsandsupporttheprotectionofhumanrights.TheCompanydoesnottolerateanyharassmentoranyactofviolenceofthreateningbehaviourintheworkplace,includinganysexual,age-related,religiousorracialharassment.

TheCodeofConductprohibitsgivinganythingofvalue,directlyorindirectly,toofficialsofforeigngovernmentsorpoliticalcandidatesinordertoobtainorretainbusiness.Itisstrictlyprohibitedtomakeillegalpaymentstogovern-mentofficials,oranyotherperson,ofanycountry.

AqualishasaCorporateComplianceOfficerandemployeesareinstructedtoreportviolationofthecompany’sCodeofConduct.

OUTLOOK

AttheendofthefourthquarterGroupbacklogfromfixedcontractsstoodatapprox.USD19.7million,therebymaintainingtheapproximateUSD20millionlevelthatwehaveheldsinceJune2014.Increasingrevenuesarebeingderivedfromcalloutoperationalcontractssuchasmarineoperations,DPandMWSwhichdonotgetincludedinthecompany’sbacklog.Thepipelineofworkexpectedfromcalloutcontractscontinuestolooksolid.

Lookingattheregionalmarkets;AsiaPacificandMiddleEastremainparticularlybuoyantanda


28

numberofgoodopportunitieshavebeenidentifiedwhichthegroupisactivelychasing.However,weexpecttheoutlookintheBrazilianmarkettoremainsoftthroughout2015followingthefall-outfromthePetrobrascorruptionscandal.

Ingeneral,therecentfallinthepriceofoilhascreatedacertainlevelofnervousnessinthemarket.Aqualisismonitoringcloselytoseehowthismayormaynotaffectthegroup.Whatever2015bringstherewillbeopportunitiesandtheGroupwilladapt,asappropriate,tofocusonanddeveloptheareasofthemarketthatitbelieveswillofferupsideopportunities.

AqualisfeelsthattheGroupiswellplacedatthemomentasitcontinuestowinmarketsharefromitscompetitors.TheGroup’sstrategyoverthecourseof2015willbetomaintainstrategic

growththroughcontinuedrecruitmentofexperiencedandrespectedstafftofurtherenhancethereputationofourcompany.

STATEMENT OF CORPORATE GOVERNANCE

InaccordancewithSection3-3boftheNorwegianAccountingAct,astatementofcorporategovernancehasbeenprepared. Thestatementisincludedasaseparatedocumentintheannualreport. StatementofcorporatesocialresponsibilityInaccordancewithSection3-3coftheNorwegianAccountingAct,astatementofcorporatesocialresponsibilityhasbeenprepared.ThestatementisfeaturedintheDirector’sreport.

PARENT COMPANY

Theparentcompany,AqualisASA,reportedanetprofitin2014ofNOK10.7million.Totalassetsasof31December2014wereNOK310.5million.Thelong-termintercompanyreceivableswereNOK60.1millionatyear-end2014.TheCompany’scashbalanceatyear-end2014wasNOK12.3million.Totalshareholders’equityatyear-end2014wasNOK307.1million.Theequityratiowas98.9%atyear-end2014.

TheBoardofDirectorshasproposedthatthenetprofitofNOK10.7millionshouldbetransferredtoretainedearnings.

Oslo,27April2015

Glen RødlandChairmanoftheBoard

Yvonne Litsheim SandvoldBoardmember

Reuben SegalBoardmember

Øystein Stray SpetalenBoardmember

Synne SyrristBoardmember

David WellsCEO


29

RESPONSIBILITY STATEMENT

Weconfirmthat,tothebestofourknowledge,theFinancialStatements2014,whichhavebeenpreparedinaccordancewithIFRSasadoptedbyEU,givesatrueandfairviewoftheCompany’sassets,liabilities,financialpositionandresultsofoperations,andthatthemanagementreportincludesafairreviewoftheinformationrequiredundertheNorwegianSecuritiesTradingActsection5-5.

Oslo,27April2015



Reuben SegalBoardmember



David WellsCEO

AqualisASA–AnnualReport2014

30

FINANCIAL STATEMENTS

AqualisASA–AnnualReport2014GROUPACCOUNTS

31

AQUALIS GROUP FINANCIAL STATEMENTS AND NOTES

CONSOLIDATED STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31 DECEMBER 32

CONSOLIDATED STATEMENT OF OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 33

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 34

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 35

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 36

NOTE 1: CORPORATE INFORMATION 37

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 37

NOTE 3: CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS IN TERMS OF ACCOUNTING POLICIES 41

NOTE 4: BUSINESS COMBINATIONS 42

NOTE 5: LIST OF SUBSIDIARIES 44

NOTE 6: SEGMENT INFORMATION 44

NOTE 7: IMPAIRMENT TESTING OF GOODWILL 45

NOTE 8: PAYROLL AND PAYROLL RELATED COSTS 46

NOTE 9: OTHER OPERATING COSTS 47

NOTE 10: FINANCIAL ITEMS 47

NOTE 11: TAXES 48

NOTE 12: EARNINGS PER SHARE 48

NOTE 13: EQUIPMENT 49

NOTE 14: INTANGIBLE ASSETS 50

NOTE 15: TRADE AND OTHER RECEIVABLES 51

NOTE 16: CASH AND CASH EQUIVALENTS 51

NOTE 17: ISSUED SHARES, SHARE CAPITAL AND RESERVES 52

NOTE 18: BORROWINGS 53

NOTE 19: OTHER CURRENT LIABILITIES 53

NOTE 20: FAIR VALUES OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES 53

NOTE 21: RELATED PARTIES DISCLOSURES 54

NOTE 22: TRANSACTIONS WITH RELATED PARTIES 54

NOTE 23: COMMITMENTS AND CONTINGENCIES 55

NOTE 24: FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES 55

NOTE 25: EVENTS AFTER THE REPORTING PERIOD 56

Index


32

(USD1000) NOTE 2014 2013

Revenue 6 31 937 2241Total operating income 31 937 2 241

Payrollandpayrollrelatedcosts 8 18 563 1790Depreciation,amortisationandimpairment 13,14 900 110Otheroperatingcosts 9 14 575 1278Operating profit /-loss -2 101 -937

Financeincome 10 2 267 124Financecosts 10 205 60Profit/-loss before taxes -39 -873

Taxes 11 211 - Profit/-loss after taxes -250 -873

Loss for the year attributable to:Equityholdersoftheparentcompany -250 -873Non-controllinginterests - - Total -250 -873

Earnings per share (USD): basic and diluted 12 -0.01 -0.03

Consolidated Statement of Profit and Loss for the year ended 31 December


33

(USD1000) 2014 2013

Profit/-loss for the year -250 -873

Other comprehensive incomeOthercomprehensiveincometobereclassifiedtoprofitorlossinsubsequentperiodsCurrencytranslationdifferences -8 834 65Incometaxeffect - -Other comprehensive income for the year, net of tax -9 084 -808

Total comprehensive income for the year, net of tax -9 084 -808

Total comprehensive income for the year, net of tax attributable to:Equityholdersoftheparentcompany -9 084 -808Non-controllinginterests - - Total -9 084 -808

Consolidated Statement of Other Comprehensive Income for the year ended 31 December


34

(USD1000) NOTE 2014 2013

ASSETSNon-current assetsEquipment 13 629 372Intangibleassets 7,14 20 710 15364Total non-current assets 21 339 15 736

Current assetsTradereceivables 15 5 229 2107Otherreceivables 15 2 990 1219Cashandcashequivalents 16 21 790 838Total current assets 30 009 4 165

Total assets 51 348 19 901

(USD1000) NOTE 2014 2013

EQUITY AND LIABILITIES Equity Sharecapital 17 702 0Sharepremium 47 058 0Otherpaidincapital 178 0Netlosses -3 491 12335Total equity 44 447 12 335

Non-current liabilitiesBorrowings 18 - 5174Total non-current liabilities 0 5 174

Current liabilitiesTradepayables 20 1 227 602IncomeTaxpayable 11 196 0Othercurrentliabilities 19,20 5 478 1789Total current liabilities 6 901 2 391

Total liabilities 6 901 7 565

Total equity and liabilities 51 348 19 901

Consolidated Statement of Financial Position as at 31 December

Oslo,27April2015



Reuben SeagalBoardmember



David WellsCEO


35

(USD1000) NOTE SHARECAPITAL SHAREPREMIUMOTHERPAIDIN

CAPITALRETAINEDEARNINGS

FOREIGNCURRENCY

TRANSLATIONRESERVE TOTALEQUITY

Equity as at 01.11.2013 - - - 13 208 -65 13 143 Totalcomprehensiveincome -873 65 -808Equity as at 31.12.2013 - - - 12 335 - 12 335

Equity as at 01.01.2014 12 335 12 335 -

Totalcomprehensiveincome -250 -8 834 -9084Issueofsharecapital -

Foundationcapital,June 17 167Privateplacement,July 17 118 10357Contributioninkind,July(groupcontinuity) 17 417 36701 - -6742 30376

Share-basedpayment - 178 178Equity as at 31.12.2014 702 47 058 178 5 343 -8 834 44 447

Consolidated Statement of changes in equity


36

(USD1000) NOTE 2014 2013

Cash flow from operating activitiesLossbeforeincometax -39 -873Non-cashadjustmenttoreconcileprofitbeforetaxtocashflow: -

Estimatedvalueofemployeeshareoptions 17 178 - Depreciation,amortisationandimpairment 13,14 900 110Gainondisposalofplant&equipment - - Unrealisedforeigncurrency(gains)/losses - -

Changesinworkingcapital: - Changesintradereceivablesandtradecreditors -2 497 143Changesindeferredincome - - Changesinotheraccruals 1 570 -1060

Effectrelatedtoacquisitionofsubsidiary 2 147 - Netinterest(income/expense) -65 -64Effectsrealtedtocurrency/unrealized) -2 050 Net cash flow from operating activities 144 -1 744

Cash flow from investing activitiesProceedsforsaleofplant&equipment - - Purchaseofequipment 13 -691 -130Acquisitionofsubsidiary,netofcash 1 997 - Interestreceived 65 124Net cash flow from investing activities 1 371 -6

Cash flow from financing activitiesProceedsfromshareissue 10 642 - PaymentsfromWeifa(previousowner) 8 857 - Transactioncostsonshareissue - - Repaymentofborrowings - 1174Interestpaid - -60Net cash flow from financing activities 19 499 1 114

Net change in cash and cash equivalents 21 014 -636 Cashandcashequivalentsbeginningperiod 16 838 1474Netforeignexchangedifference -62 - Cash and cash equivalents end period 21 790 838

Consolidated Statement of Cash flows for the year ended 31 December


37

Note 1: Corporate information

AqualisASAisapubliccompanythat,throughitssubsidiaries,offersmarineandengineeringconsultancyservicestotheoffshoreoil,gasandrenewablesectorsglobally.

Thegroupemploysapproximately200highlyexperiencedconsultantsacross13officesin10countriesworldwide,primarilyfocusingondevelopingeconomiesandemergingmarkets.

AqualisASAoperatesundertwodifferentbrands:AqualisOffshoreandOffshoreWindConsultants.

AqualisOffshoreisaspecializedoffshoremarineandengineeringconsultancyfirm,focusingontheshallowanddeep-wateroffshoresegmentsoftheoilandgasindustry.Itscoreservicesincludesconcept,FEEDandbasicdesignengineeringfo

Documents

AQUALIS ASA ANNUAL REPORT 2014 - AqualisBraemar...Marine and Offshore AS in December 2012, and was owned by Strata Marine and Offshore, Gross Management, Ferncliff and key management,