Annual Report

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Notes – Marine Subsea Consolidated (All amounts in USD 1 000 if not otherwise stated) Note 1 – General information Marine Subsea AS is an international oil service company with a focus on the West African Offshore market. The Group owns a fleet of six units in operation and two under construction, including two multipurpose/ intervention vessels, five offshore support units and one semisubmersible crane vessel. In addition, the company has secured a service contract for a deepwater drillship. Marine Subsea AS was incepted on 9 October 2006. The vessel owning companies are owned 100% by the company, except Marine Subsea Sarah Ltd, Marine Subsea Karianne Ltd and Marine Subsea Lifter Ltd, wich are owned 75%, and Marine Subsea & Consfe Ltd wich the company has a 40% share interest in. The company is a limited liability company incorporated and domiciled in Norway. The address of its registered office is Strandveien 50, 1366 Lysaker. The consolidated financial statements were authorised for issue by the board of directors on 21 April 2010. Note 2 – Summary of significant accounting policies The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the years presented. 2.1 Basis of preparation The consolidated financial statements of Marine Subsea AS have been prepared in accordance with International Financial Reporting Standards as adopted by EU. The consolidated financial statements have been prepared under the historical cost convention, except certain financial assets and financial liabilities (including derivative instruments) that are recogniced at fair value. The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the group’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in note 4. The accounting policies adopted are consistent with those of the previous financial year except as follows: The Group has adopted the following new and amended IFRS and IFRIC interpretations as of 1 January 2009: • Amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards and lAS 27 • Consolidated and Separate Financial statements (effective from 1 January 2009). The amendments to IFRS 1 allows an entity to determine the ‘cost’ of investments in subsidiaries, jointly controlled entities or associates in its opening IFRS financial statements in accordance with lAS 27 or using a deemed cost. The amendment to lAS 27 requires all dividends from a subsidiary, jointly controlled entity or associate to be recognised in the income statement in the separate financial statement. The revision to lAS 27 will have to be applied prospectively. The new requirements affect only the parent’s separate financial statement and do not have an impact on the consolidated financial statements • IAS 1; Presentation of financial statement, revised (effective from 1 January 2009). Key changes regarding this revised standard are the following; Changes in equity arising from transactions with owners ( such as dividends and shares repurchases) and the related tax impact are presented in the statement of changes in equity; ‘Nonowner’ changes in equity and the related tax impact are presented in comprehensive income; Comprehensive income is presented in either a single statement or in two statements (an income statement and a statement of comprehensive income); Dividends and per share amounts are presented in the statement of changes in equity or in the notes; A statement of financial position (balance sheet) at the beginning of the corresponding period is presented where restatements have occurred; and Reclassification adjustments (recycling) and the related income tax are disclosed in the comprehensive income. The Group has deciced to present one single statement. • IFRS 8, ‘Operating segments ‘ (effective from 1 January 2009). IFRS 8 replaces IAS 14 and aligns segment reporting with the requirements of the US standard SFAS 131, ‘Disclosures about segments of an enterprise and related information’. The new standard requires a ‘management approach’, under which segment information is presented on the same basis as that used for internal reporting purposes. The Group has a non complex structure of different busienss activities. The more complex the group structure , the more likely it is that the segments identified will not be the same as those identifeied when applying IAS 14. (a) Interpretation early adopted by the group No standards, amendments and interpretations to existing standards have been early adopted by the Group. (b) Standards, amendments and interpretations to existing standards that are not yet effective and have not been early adopted by the group The following standards, amendments and interpretations to existing standards have been published and are mandatory for the group’s accounting periods beginning on or after 1 January 2010 or later periods, but the group has not early adopted them: • IFRS 3R Business Combinations and lAS 27R Consolidated and Separate Financial Statements (effective from 1 July 2009). IFRS 3R introduces a number of changes in the accounting for business combinations occurring after this date that will impact the 24 Marine Subsea Annual Report 2009
Notes – Marine Subsea Consolidated amount of goodwill recognised, the reported results in the period that an acquisition occurs, and future reported results. lAS 27R requires that a change in the ownership interest of a subsidiary (without loss of control) is accounted for as an equity transaction. Therefore, such transactions will no longer give rise to goodwill, nor will it give rise to a gain or loss. Furthermore, the amended standard changes the accounting for losses incurred by the subsidiary as well as the loss of control of a subsidiary. Other consequential amendments were made to lAS 7 statement of Cash Flows, lAS 12 Income Taxes, lAS 21 The Effects of Changes in Foreign Exchange Rates, lAS 28 Investment in Associates and lAS 31 Interests in Joint Ventures. The changes by IFRS 3R and lAS 27R will affect future acquisitions or loss of control and transactions with non-controlling interest. The Group expects to implement IFRS 3(R) as of 1 January 2010. • lAS 32 Financial Instruments: Presentation and lAS 1 Presentation of Financial Statements – Puttable Financial Instruments and Obligations Arising on Liquidation (effective from 1 February 2010). The revisions provide a limited scope exception for puttable instruments to be classified as equity if they fulfil a number of specified features. The amendments to the standards will have no impact on the financial position or performance of the Group, as the Group has not issued such instruments. • lAS 39 Financial Instruments: Recognition and Measurement – Eligible Hedged Items (effective from 1 July 2009). The amendment addresses the designation of a one-sided risk in a hedged item, and the designation of ihflation as a hedged risk or portion in particular situations. It clarifies that an entity is permitted to designate a portion of the fair value changes or cash flow variability of a financial instrument as hedged item. The Group has concluded that the amendment will have no impact on the financial position or performance of the Group, as the Group has not entered into any such hedges. • IFRIC 16 Hedges of a Net Investment in a Foreign Operation. (effective from 1 July 2009). The interpretation is to be applied prospectively. IFRIC 16 provides guidance on the accounting for a hedge of a net investment. As such it provides guidance on identifying the foreign currency risks that qualify for hedge accounting in the hedge of a net investment, where within the group the hedging instruments can be held in the hedge of a net investment and how an entity should determine the amount of foreign currency gain or loss, relating to both the net investment and the hedging instrument. to be recycled on disposal of the net investment. The changes by IFRIC 16 will affect future hedges of a net investment in a foreign operation. The Group expects to implement IFRIC 16 as of 1 January 2010. • Amendments to IFRS 2 Share-based Payments – Group Cash-settled Share-based payment Transactions: The amendment to IFRS 2 provides more guidance on the accounting for group cash-settled share-based payment transactions. In addition, the definition of share based payment is somewhat modified. This amendment supersedes IFRIC 8 and IFRIC 11. This amendment is effective for annual periods beginning on or after 1 January 2010, but the amendment is not yet approved by the EU. The Group expects to apply the amendment as of 1 January 2010. The amendments to the standards will have no impact on the financial position or performance of the Group, as the Group has no share-based agreements at year end 2009. • IFRS 9 Financial Instruments: IFRS 9 replaces the classification and measurement rules in IAS 39 Financial Instruments- Recognition and measurement for financial instruments. According to IFRS 9 financial assets with basic loan features shall be measured at amortised cost, unless one opts to measure these assets at fair value. All other financial assets shall be measured at fair value. IFRS 9 is effective for annual periods beginning on or after 1 January 2013, but the standard is not yet approved by the EU. The Group expects to apply IFRS 9 as of 1 January 2013. The amendments to the standards is not expected to have an impact on the financial position or performance of the Group. • IAS 24 (revised) Related Party Disclosures: The revised IAS 24 clarifies and simplifies the definition of a related party, compared to the current IAS 24. The revised standard also provides some relief for governmentrelated entities to disclose details of all transactions with other government-related entities (as well as with the government itself). IAS 24 (R) is effective for annual periods beginning on or after 1 January 2011, but the revised standard is not yet approved by the EU. The Group expects to implement IAS 24 (R) as of 1 January 2011. • IAS 27 (revised) Consolidated and Separate Financial Statements. The revised IAS 27 provides more guidance on accounting for changes in ownership interest in a subsidiary and the disposal of a subsidiary, compared to the current IAS 27. According to the revised standard the entity measures the interest retained in a former subsidiary at fair value upon loss of control of the subsidiary, and the corresponding gain or loss is recognised through profit and loss. The revised standard also includes a change in the requirements relating to the allocation of losses in a loss-making subsidiary. IAS 27 (R) requires total comprehensive income to be allocated between the controlling and the non-controlling party, even if this results in the non-controlling interest having a deficit balance. IAS 27 (R) is effective for annual periods beginning on or after 1 July 2009. The Group plans to implement IAS 27 (R) as of 1 January 2010. • Amendments to IFRIC 14 IAS 19 The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction – Prepayments of a Minimum funding Requirement: The amendment to IFRIC 14 intends to correct an unintended consequence of IFRIC 14 IAS 19 The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction. This amendment will allow entities to recognise a prepayment of pension contributions as an asset rather than an expense. The amendment is effective for annual periods beginning on or after 1 January 2011, but the amendment is not yet approved by the EU. The Group expects to implement the amendment as of 1 January 2011. The Group does not expect that implementation of IFRIC 14 will have a material effect on the financial statement of the Group on the date of implementation. • IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments: The interpretation clarifies the accounting treatment of financial liabilities that, as a result of a renegotiation of the terms of the financial liability, are fully, or partially, extinguished with equity instru- Annual Report 2009 Marine Subsea 25
Page 1 and 2: Annual Report 2009
Page 3 and 4: Content Chairman’s Remarks Vessel
Page 5 and 6: Highlights 2009 August November Dec
Page 7 and 8: Managing Director’s statement Mar
Page 9 and 10: Marine Subsea’s Corporate Structu
Page 11 and 12: Marine Subsea’s Corporate Structu
Page 13 and 14: Marine Subsea Fleet Offshore Interv
Page 15 and 16: Marine Subsea Fleet Semi-Submersibl
Page 17 and 18: Board of Directors Report The compa
Page 19 and 20: I SARAH LIMASSOL MARINE SUBSEA MAR.
Page 21 and 22: Consolidated statement of financial
Page 23: Consolidated statement of cash flow
Page 27 and 28: Notes - Marine Subsea Consolidated
Page 55 and 56: Annual Report 2009 Marine Subsea 55
Page 57 and 58: Balance sheet As of 31 December (Al
Page 59 and 60: Cash flow statement Year ended 31 D
Page 61 and 62: Notes - Marine Subsea AS Name 2009
Page 63 and 64: Notes - Marine Subsea AS Note 6 - T
Page 65 and 66: Notes - Marine Subsea AS Note 9 - T
Page 67 and 68: Notes - Marine Subsea AS Note 14 -
Page 70: signatur.no • 100112 Main Office,

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