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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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COMPANY INFORMATION
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CONTENTS
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STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The principal activities of the company are the operation and management of supply vessels and the provision of transportation services from onshore supply bases to offshore oil drilling and production operations.
We rely on the oil and gas industry although are actively engaging in the offshore wind farms and the renewable energy market. Demand for our services depends on the activity in offshore oil and natural gas exploration, development and production. The level of exploration , development and production is affected by factors such as: - Prevailing Oil and Natural gas prices - Expectations about future prices & volatility - Costs of exploring for, producing and delivering oil and natural gas - Sale & expiration dates of available offshore leases - Demand for petroleum services - Current availability of oil and natural gas resources - Rate of discovery of new oil and natural gas reserves in offshore areas - Local and international political, environmental and economic conditions - Changes in laws and regulations - Technological advances - Ability of Oil and Natural gas companies to obtain leases and permits, or obtain funds for capital; and - Activity in the renewables market combined with licencing agreements across Western Europe Any such decreases in activity may reduce our day rates and our utilization rates. The supply of competitors' vessels to the areas in which we operate has the ability to create an imbalance which in over supply conditions can reduce our day rate and utilization. These financial statements have been prepared on a going concern basis, which the directors believe to be appropriate based on the disclosures made in note 2.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The company primarily operates in UK and Norwegian oil and gas markets in the North Sea and so demand for services is linked to the activity in the sector which is primarily driven by the market price for such commodities. The oil price started the year at c $79/bbl and ended the year at $74 /bbl, however during the year there were spikes to $93/bbl in April and dips to $70/bbl. This relatively steady price assists in creating confidence in the future direction of pricing and subsequent demand; however all parties understand the effect of the Ukraine conflict and Russian sanctions on oil supply and the price strengthening this brought.
The offshore vessel services market improved markedly through 2024. The UK saw £6 billion of investment in 2024 a marked increase for both exploration and development drilling in the North Sea. During 2024 vessel utilization increased and, subsequently, day rates began to climb with Charterers looking to fix vessels on term contracts rather than servicing their requirements from the spot market. 2024 also saw an increase in offshore renewable activities. Tidewater remains in a good position to take advantage of these opportunities and had vessels working in France on two major projects during this period. Throughout the year, the company’s subsidiaries have continued with best efforts to reduce vessel operating costs where possible whilst still providing a high quality, safe service. The profit for the year, after taxation amounted to £15,090,000 (2023 - loss £12,078,000).
Financial Highlights
The financial highlights are as follows:
The directors intend to seek and obtain new contracts in the offshore and renewables sector and elsewhere within the marine industry whilst maintaining a high level of service provision to existing clients.
As mentioned above, we have seen an improvement in the market throughout 2024. The activity that is forecast for 2025 and beyond, as well as consolidation amongst Vessel Owners, should result in continued improvement for the OSV market. There remains a lack of new build vessels either under construction or on the market and this situation is expected to continue over the next 2 to 5 years. This is expected to further stimulate the market as older tonnage becomes less attractive to potential charterers. In summary, the board is of the opinion that the long term outlook for the company is positive. For the fiscal year 2025, the Company will have access to funding, if required, from the ultimate parent, Tidewater Inc.
We are subject to financial market risks, including fluctuations in foreign currency exchange rates and interest rates. To manage and mitigate our exposure to these risks, we may use derivatives instruments in accordance with established policies and procedures. As at 31 December 2024, we have no derivative contracts.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The company must comply with the extensive government and industry legislation in the countries where the company operated and where the vessels are registered.
The company operates within the "International Safety Management Code" which provides an international standard for safe management of ships and pollution prevention. The company is also environmentally accredited under the ISO 14001 standard which ensured the company's commitment to reducing the impact on the environment is also demonstrated by the choice of vessels under construction which are designated by naval classification societies as Clean Class and Design and have improved fuel efficiency.
There are a number of potential risks and uncertainties which could have an impact on the company's long term performance. The directors of the company along with operational management review these risks on an ongoing basis and undertake any relevant actions to minimize the impact of the company's ability to perform into the future.
The demand for services is dependent on activity in offshore oil and natural gas exploration, development and production. This activity is affected by factors such as oil and natural gas pricing, the costs for the exploration and production of these products, demand for these products as well as economic and political conditions. An increase in the number of offshore support vessels could potentially have a negative impact on the charter rates for the vessels. With an increasing number of vessels, the labour pool can be affected, which can in turn affect the company's ability to retain quality seafarers and thus maintain the company's high operating and health and safety standards. Currently, due to improved market condition, the risk of asset impairment charges is remote.
Turnover: has increased in the year by £52.7m from £83.7m to £136.4m which is primarily contributable to the acquisition of Solstad Offshore AS vessels in July 2023, improved market conditions and vessel utilization, the price of fossil fuels and diversification of industry into the renewables markets.
Operating profit/(loss): the amount of this year's loss has increased from a loss of £12,078,000 to a profit of £15,090,000. Throughout the course of normal operation, constant effort is made to minimize the cost base of both operating and reducing maintenance time. Utilization of vessels: measuring the amount of time that vessels are available for work and days worked. Down for Repair: maintaining a fleet where the average age is increasing and minimising lost revenue through identifying and rectifying potential issues earlier to prevent breakdown. Charter day rate: identifying the strength of the vessels' earnings. Forward cover: identifying how much future outlook is booked.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors have acted in a way that they considered, in good faith, to be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so had regard, amongst other matters, to:
∙the likely consequences of any decision in the long term;
∙the interests of the company's employees;
∙the need to foster the company's business relationships with suppliers, customers and others;
∙the impact of the company's operations on the community and the environment;
∙the desirability of the company maintaining a reputation for high standards of business conduct; and
∙the need to act fairly as between shareholders of the company.
The vast majority of stakeholder engagement is carried out by the Board. The Board considers and discusses information from across the organisation to help it understand the impact of the company's operations, and the interests and views of our key stakeholders. It also reviews strategy, financial and operational performance as well as information covering areas such as key risks, and legal and regulatory compliance. As a result of these activities, the Board has an overview of engagement with stakeholders, and other relevant factors, which enables the directors to comply with their legal duty under section 172 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The profit for the year, after taxation, amounted to £15,090,000 (2023 - loss £12,078,000).
The directors do not propose the payment of a dividend for the current financial year (2023 - NIL).
The directors who served during the year and up to the date of signing were:
Information relating to the engagement with customers, suppliers and other stakeholders is contained within the Strategic Report.
The Company has branches, as defined in S1046(3) of the Companies Act 2006, outside the UK as follows:
∙Namibia
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
We fully recognise our responsibility to protect the environment and we have a strong environmental policy, objectives, and guidelines in place which we review and update regularly. The Company complies with all regulations covering the processing and disposal of toxic & non toxic waste and uses qualified licensed contractors for the collection and disposal of waste where appropriate.
The section below presents the energy usage and associated carbon dioxide emissions for Tidewater Marine UK Ltd operations that are based in the UK. The Group has taken the exemptions available from including overseas subsidiaries. This section has been prepared in compliance with the SECR Framework. The following disclosures cover the financial reporting period 1 January to 31 December 2024. UK energy use During the reporting period the company used a total of 528,751,591 kWh energy (2023 – 363,874,330 kWh) and emitted a total of 164,914 tonnes (2023 – 113,487 tonnes) of C02e which is categorised as follows:
Scope 1: Greenhouse gases that an organization emits from sources it owns or controls directly – idle vessels fuel, should also include business travel including air fares for crew/office staff.
Scope 2: Emissions are indirect, deriving from an organization’s purchase of electricity – electricity for the office. Scope 3: Emissions not produced by the company The increase in total energy consumption is reflective of increased vessel operations following the improved market conditions and reflects a full year of the expanded fleet operations following the acquisition of Solstad Offshore AS vessels in July 2023.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Energy efficiency action
∙Tidewater ensure that the vessels main and auxiliary engines are well maintained, in excellent condition, to ensure optimum and efficient combustion during operation. We closely follow the maintenance routines as advised by the makers and carry pout main engine overhauls per these guidelines.
∙Three company cars (as of 2025) – 2 hybrid and one fully electric.
∙AC systems were optimised during 2022, reducing the environmental impact in 2023 / 2024, resulted in a 33% reduction in consumption.
∙The disposal of 392 Fluorescent bulbs and 10 Sodium lamps in 2023 contributed to a 14.7% reduction in energy consumption in 2023, when compared with 2022. Installed LED lighting, energy usage is 32W rather than the 72W per fitting.
∙Improved fuel / emissions tracking via UniSea and MARESS vessel monitoring.
∙Scheduled special survey dry docking's to ensure hull cleanliness, paint covering reapplied or fully recoated as necessary. Propeller blades polished.
∙Company objective to reduce use of non recyclable goods and packaging. Ongoing engagement with main suppliers including trials of consolidated recyclable packing ongoing with a number of our vessels.
∙Company objective to install freshwater filters onboard all vessels to support end of single use plastic water bottles across the fleet. All crew supplied with their own personal water bottle.
∙Provision of vessel emission reports calculated as per vessel activity during client quarterly review meetings, to identify potential areas for improvement in operational planning to help reduce fuel usage and emissions.
∙Where operationally safe, a reduction in number of engines online when working in favourable conditions, rather than having all four engines running.
∙Co-ordinate with vessels that trim and draft adjustments are made for optimal performance in the conditions faced.
∙Vessels to be added to the Environmental Ships Index Portal.
Intensity ratio and methodologies
Greenhouse gas emissions are reported in tonnes carbon dioxide equivalents CO2e. Calculations are performed using the emission factors which are in accordance with the current guidelines from the UK Government GHG Conversion Factors for Company Reporting 2022.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
There have been no significant events affecting the company since the year end.
The auditors, AAB Audit & Accountancy Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TIDEWATER MARINE UK LTD
We have audited the financial statements of Tidewater Marine UK Ltd (the 'company') for the year ended 31 December 2024, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TIDEWATER MARINE UK LTD (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TIDEWATER MARINE UK LTD (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 and UK Taxation legislation. We identified the greatest risk of material impact on the financial statements from irregularities including fraud to be:
∙Management override of controls to manipulate the company's key performance indicators to meet targets
∙Timing and completeness of revenue recognition
∙Management judgement applied in calculating provisions
∙Compliance with relevant laws and regulations which directly impact the financial statements and those that the company needs to comply with for the purpose of trading
Our audit procedures to respond to these risks included:
∙Testing of journal entries and other adjustments for appropriateness
∙Testing a sample of sales transactions and reviewing revenue recognition around the year end
∙Evaluating the business rationale of significant transactions outside the normal course of business
∙Reviewing judgements made by management in their calculation of accounting estimates for potential management bias
∙Enquiries of management about litigation and claims and inspection of relevant correspondence
∙Reviewing legal and professional fees to identify indications of actual or potential litigation, claims and any non-compliance with laws and regulations
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TIDEWATER MARINE UK LTD (CONTINUED)
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Statutory Auditor
Prime Four Business Park
Kingswells
AB15 8PU
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STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 17 to 35 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Tidewater Marine UK Ltd ('the company') operates and manages supply vessels and provides transportation services from onshore supply bases to offshore oil drilling and production operations.
The company is a private company limited by shares and incorporated and domiciled in England. The address of its registered office is C/O Hunters Law LLP, 9 New Square, Lincoln's Inn, London, United Kingdom, WC2A 3QN.
2.Accounting policies
All amounts in the financial statements have been rounded to the nearest £1,000.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 4 Statement of Financial Position paragraph 4.12(a)(iv);
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.41(b), 11.41(c), 11.41(e), 11.41(f), 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The company contributes to a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the company in independently administered funds.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
The estimated useful lives range as follows:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
The directors have determined the amounts of 7.5% residual value of the vessels acquisition costs as a reasonable estimate of the residual value of each vessel, representing the scrap value. This estimate is reviewed against current expectations annually and residual value is amended where necessary.
Expenditure in relation to vessels in the course of construction is capitalised as incurred. However, no depreciation is charged until construction is complete and the vessel is put into action. Drydocking expenditure is capitalised when incurred and depreciated over the period to the next inspection, generally 30 months, as specified above. Financial assets (including trade and other debtors) A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably. An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. For financial instruments measured at cost less impairment an impairment is calculated as the difference between its carrying amount and the best estimate of the amount that the company would receive for the asset if it were to be sold at the reporting date. Interest on the impaired asset continues to be recognised through the unwinding of the discount. Impairment losses are recognised in Statement of comprehensive income. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through Statement of comprehensive income.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Non-financial assets
The carrying amounts of the company’s non-financial assets, other than stocks, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the “cash-generating unit”).
An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognised in Statement of comprehensive income. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the units, and then to reduce the carrying amounts of the other assets in the unit (group of units) on a pro rata basis. An impairment loss is reversed if and only if the reasons for the impairment have ceased to apply. Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in Statement of comprehensive income.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
The company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
Financial instruments are recognised in the company's Balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the company after the deduction of all its liabilities. Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial. Debt instruments are subsequently carried at their amortised cost using the effective interest rate method. Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. Other financial instruments Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss. Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy. Derecognition of financial instruments Derecognition of financial assets Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the company will continue to recognise the value of the portion of the risks and rewards retained. Derecognition of financial liabilities Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Investments The company holds investments in subsidiary undertakings, which must be assessed for impairment when relevant triggers are present. The assessment of the valuation of investments in subsidiaries may involve the use of estimates of future cashflows, discount rates, and estimates regarding terminal growth rates. Carrying value of tangible assets The company establishes a reliable estimate of the useful life and residual value of the vessels that are capitalised within tangible fixed assets. In the current year the directors reviewed these estimates and maintained a residual value based on the scrap value of each vessel. The useful life of the vessels remain at 20 years. This value is based on market data of the scale of other comparable vessels at the end of their useful lives. Impairment of tangible assets The impairment assessment of tangible assets requires management to use evidence from external valuations, as well as making an assessment of future cashflows, discount rates and predicted utilisation of each vessel. Actual values achieved on sale, or cashflows achieved in the market, may vary from the estimates used.
Analysis of turnover by country of destination:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
There were no factors that may affect future tax charges.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The company has entered into share based arrangements with senior employees, under a non-HMRC approved ''Restricted stock'' scheme.
The company previously entered into share based arrangements with employees at all levels, under a HMRC approved ''free share'' scheme. This scheme was closed during 2018. The charge to the Profit and loss account is £238,000 (2023 - £213,000). In 2024 the company has been recharged an element of this, such charges having the effect of reducing the adjustment to equity. The amount charged by the parent was £238,000 (2023 - £213,000). The adjustment to equity is £NIL (2023 - £NIL).
Restricted stock
Restricted stock is granted in respect of this plan by the US parent company to certain employees of the company on a discretionary basis. Awards are measured at their fair value, represented by the closing market price on the date of the grant.
Restricted stock - free share scheme
Restricted stock is granted in respect of this plan by the US parent company to certain employees of the company on a discretionary basis. Awards are measured at their fair value, represented by the closing market price on the date of grant.
Restricted stock awards have restrictions that lapse periodically over and extended period of time, generally three years Compensation expense is recognised over the requisite service period (usually the restriction period). There are no performance conditions, the employee simply has to provide the requisite service to the company to earn the award.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
At the end of 2024 the company had a possible tax liability of £1,900,000 (2023 - £2,713,000) resulting from trade in current and previous periods. This amount includes possible applicable fines and penalties as a result of non-declaration.
The Company contributes towards stakeholder individual pension arrangements. The pension charge for this year represents contribution payable by the Company to the scheme and amounted to £194,000 (2023 - £148,000). There are no outstanding or prepaid contributions at the end of the financial year (2023 - £NIL).
The immediate parent company is
Tidewater Inc. is the smallest and largest parent company preparing Group consolidated financial statements which include Tidewater Marine UK Ltd. A copy of its financial statements may be obtained by writing to Tidewater Inc., 842 West Sam Houston, Parkway North, Suite 400, Houston, TX 77024 or by visiting www.tdw.com. The ultimate parent company is not considered to have a single controlling party.
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