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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2025
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COMPANY INFORMATION
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CONTENTS
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STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors present their strategic report for the year ended 31 December 2025.
The key financial and other performance indicators during the year are presented below.
The Seawell began the year with a regulatory dry-dock in the Netherlands. The vessel arrived back in UK waters in March, before being laid up for the year. The vessel returned to service in February 2026.
The Well Enhancer achieved 278 days in comparison to 239 days in 2024. The vessel began the year with short maintenance period in the Netherlands. The vessel returned to service in March working through to Q4 2025 in UK waters. The Well Enhancer performed well during the year with minimal downtime incurred. 2025 combined utilisation was 278 days compared to 553 days in 2024. Comparative revenue decreased by 13% taking into account the Seawell being laid up for the year and working for 315 days in the prior year. The vessel mode, diver requirements and third-party services provided contribute to revenue variations. Comparative revenue is calculated as total revenue divided by utilised days. No dividends were received during the year. A dividend of £16,000 was received from Subsea Technologies Group Limited in 2024.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The Company undertakes an annual management review of its performance and identifies those risks and issues that require to be mitigated and resolved to meet or exceed its year end qualitative and quantitative targets. The review sets performance indicators and objectives for the following year to mitigate risks that have threatened or have affected the Company’s performance across the previous year.
Those objectives and key risks help to set the budget goals for the year. The Company categorises risks into four main areas – Commercial, Technical, Contractual and Financial. Commercial Commercial risks are the loss of reputation from contract performance failure, negative publicity or other project risks. These are identified and documented as part of the tendering process and are mitigated as far as possible in accordance with the general market conditions. Examples of risk mitigation include adequate allowance for currency fluctuations in line with exchange rate forecasts available from leading financial institutions, and avoidance of risks associated with project delays due to adverse weather. Technical Technical risk is the loss through failure to execute technical project deliverables. These are identified and assessed on a continuous basis and control measures are applied to minimise risk to a level as low as is reasonably practical, including the application of new technologies and methodologies. Operational and maintenance procedures are reviewed and revised to reflect changes to accepted industry best practice. Contractual Contractual risk is of loss from contract performance, either by cancellation or substandard performance. These are mitigated through contract negotiations against a parent company approved set of standard terms and conditions. Approval is sought from the parent company prior to deviation from the approved set, and such approval is dependent upon appropriate risk analysis and the introduction of appropriate mitigating factors. Financial Financial risk is of loss through credit, liquidity and currency risk. It is mitigated through detailed accounting practices, cash management processes, a hierarchical approvals process and internally publicised and detailed limits of authority within the Company and throughout the parent company group.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors recognise their duty to act in a way which they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole in accordance with section 172 of the UK Companies Act 2006. The directors' section 172 duties are part of Board discussions. The Directors continue to have regard to the interest of the Company's key stakeholders and, throughout the year, the Board and management engage with key stakeholders on items relevant to them. We set out below our key stakeholder groups, their material issues and how the Company engaged with and considers the interest of each stakeholder group.
Investors and lenders The key areas of focus with regards to this stakeholder group is financial performance, strategy and capital allocation. Helix Well Ops (U.K.) Limited commits to maximising long-term shareholder value through clearly identifying risks, thorough planning and having effective internal controls in place. It is imperative that risks are understood and effectively managed to ensure that objectives are achieved. Although the Company has no external shareholders, the financial results are consolidated in the group results of the ultimate parent Company, Helix Energy Solutions Group, Inc. The group results are disclosed quarterly to the wider investor market, followed by a conference call with representatives from institutional shareholders to discuss group financial performance and strategy. Changes to the Company's capital structure in order to optimise group liquidity or capital is ratified by the Company's board of directors. Employees The key areas of focus with regards to this stakeholder group is engagement and work culture, training and development, diversity and inclusion and remuneration. The Company holds employee forums to communicate Company policy and initiatives. This provides an opportunity for senior management to engage with employees and answer questions that employees may have. The Company distributes employee satisfaction surveys and conducts exit interviews of employees leaving the organisation, all to gather feedback to further engagement with employees on work culture. The Company provides competitive compensation and benefit packages in addition to offering developmental opportunities based on individual performance and identified potential. The Company promotes a ‘speak up’ culture in the event ethical dilemmas arise. The Company has a zero tolerance policy for retaliation against employees who raise such concerns to senior management. Annual compliance training with regards to the UK Bribery Act (2010) and the US Foreign and Corrupt Practices Act (FCPA) is a mandatory requirement. The Company actively seeks to promote diversity and inclusion throughout its workforce.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Suppliers
The key areas of focus with regards to this stakeholder group is efficiency, expertise and enhancing relationships. In accordance with the group anti corruption compliance policy, the Company embraces the highest standards of honesty, ethics and integrity as core business values, and will do business only by lawful and ethical means. Our Code of Business Conduct includes provisions addressing conflicts of interest, corporate opportunities, compliance with our policies and with laws, rules and regulations, including laws addressing insider trading, antitrust and anti bribery. We expect our business partners, including suppliers and vendors, to act consistently with our Code. We carefully select our business partners through the application of due diligence processes and select our business partners that share our values and our commitment to safety and integrity. The Company strives to comply with its supplier contracts, which, in turn, helps us create and maintain long term supplier relationships. Customers The key areas of focus with regards to this stakeholder group is cost, efficiency, expertise and responsiveness. The Company strives to provide high quality services meeting customer needs delivering what has been promised. Customer information and performance metrics are regularly reported to senior management and the Board. New customers are subject to an extensive financial review, to suitably demonstrate their ability to pay for services. The Company strives to fulfil its contractual obligations, which, in turn, helps to create and maintain long term customer relationships. The Company is committed to conducting business in a fair, transparent and competitive manner. Many countries have laws that protect competition, making anti competitive behaviours illegal. We seek to always comply with the letter and spirit of competition laws wherever we conduct business.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Reporting period: 1st January 2025 to the 31st December 2025
The tables below capture the reasons for changes in emissions when comparing the current reporting year 2025 against the previous year of 2024 and the base year of 2020:
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Helix WOUK measured Scope 1, Scope 2, and certain Scope 3 emissions from its operations on/associated with one leased onshore office/workshop and store’s locations, and the organisations two multipurpose support vessels:
∙Helix House, Kirkton Drive, Dyce, ABERDEEN AB21 0BG
∙The Arc, Kirkton Avenue, Dyce ABERDEEN, AB21 0BF
∙Seawell and Well Enhancer
The Helix House business headquarters is a shared facility. Data included for Helix House for the base year of 2020, previous year of 2024 and current year of 2025 was calculated on the following principle:
∙Total headcount of all core personnel from all leasing tenants based within Helix House, with Helix WOUK total headcount converted into a percentage (%) of this. This equated to 43% for both 2024 and 2025.
For data provided in the tables that follow, Helix WOUK applied the guidance contained within HM Government Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance, March 2019, and The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard. Helix WOUK has also applied respective conversion factors as included in the Department for Business, Energy, and Industry Strategy & Department for Environmental Food & Rural Affairs UK Government GHG Conversion Factors for Company Reporting – 2025.
SCOPE 1 Data:
1.Marine Gas Oil was taken from vessel reports complied internally by the Marine Department.
2.Natural Gas and Biogas were taken from invoice reports supplied via Helix WOUK’s Contracted Gas Supply Companies.
3.Burning Oil was estimated and taken from total quantities purchased versus estimated volumes remaining within storage tanks.
4.When converting Marine Gas Oil and Burning Oil their respective total kg CO2e was used and divided by the relevant Government GHG kWh Conversion Factor for each.
5.Vessel Refrigerant information was taken from vessel reports complied internally by the Marine Department. Vessel totals are from noted leak and top-ups and not from routine recovery via controlled/sealed means. Helix House business headquarter air conditioning system is self-contained - leaks do not emit to the atmosphere; therefore excluded.
SCOPE 2 Data:
1.Electricity was taken from invoice reports supplied via WOUK’s Contracted Electricity Supply Company.
SCOPE 3 Data:
1.Waste disposal was taken from reports supplied via Helix WOUK’s Contracted Waste Management and Disposal Company.
1.Water supply and treatment was taken from invoice reports supplied via Helix WOUK’s Contracted Water Services Supply Company – including estimates and subsequent invoice adjustments made, where these were received/known at the time of reporting. No accurate data has been received for the Arc for 2025 due to a meter/billing issue. This issue has been raised with Scottish Water by Helix WOUK.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Managed assets/vehicle diesel use was taken from two sources:
∙For on-road vehicle, reports supplied via Helix WOUK’s Contracted Diesel Fuel Supply Company were used.
∙For off-road forklift truck(s), this was estimated from quantities ordered versus quantities remaining within storage tanks.
3.Air travel, rail travel and car hire were taken from booking reports supplied via Helix WOUK’s Contracted Travel Agency.
Travel Agency Booking Reports detailed the haul and class of flight taken. This information was compared against “Haul” and “Class” in the Government GHG Conversion Factors. Where a specific class of flight taken was not included in the Government GHG Conversion Factors tables, the “average passenger” class was used as a proxy.
Where Travel Agency Booking Reports detail vehicle registration numbers for the cars hired/used, this information was input into the UK Government “Get vehicle information from DVLA” website to confirm the cylinder capacity (cc)/respective engine size (litres) and fuel type of that vehicle. This information was compared against “Cars (by size)” in the Government GHG Conversion Factors.
OUTSIDE OF SCOPES Data:
1.The Department for Business, Energy, and Industry Strategy & Department for Environmental Food & Rural Affairs UK Government GHG Conversion Factors for Company Reporting – 2022 notes for Bioenergy: Although the Scope 1 conversion factors contain a ‘0’ value for CO2 emissions, organisations must account for the impact of the CO2 released through combustion of the fuel. Organisations should refer to the ‘outside of scopes’ listing in the 'outside of scopes' tab to find the true values for CO2 emissions.
These emissions should be calculated in the same way as the Scope 1 emissions but should be listed as a separate line item within its report called ‘outside of scopes’. This should not be included within the organisation's emissions total but displayed separately within the emissions report.
ORGANISATIONALFinancial Control Approach
BOUNDARY:
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
The following tables detail emissions by Scope 1, Scope 2, and certain Scope 3 emissions and categories within each scope:
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
Gross Emissions:
Base Year: 1st January 2020 to the 31st December 2020
Reasons for Changes in Base Year: Helix WOUK fixed a base year of 1st January 2020 to the 31st of December 2020 because this was the year that Helix WOUK relocated its business headquarters back to Helix House, a shared lease facility, having been in a separate solely leased facility for six years prior to that. It was also Helix WOUK’s first reporting period/year for Streamlined Energy and Carbon Reporting. However, the organisation recognises that any increase and decrease in demand for Helix WOUK services and utilisation of the Helix WOUK vessels will reflect in the organisation’s greenhouse gas emissions, as would any additions to, or removal of, any onshore office / workshop and store’s location or marine vessel in the organisations fleet. While reviewing annual emissions Helix WOUK’s base year may be recalculated if deemed appropriate due to significant change, and to maintain an accurate representation of the organisation’s assets and activities. In this instance reasons for changes would be presented in future financial statements.
Helix WOUK employs a Quality, Health, Safety and Environmental (QHSE) Management System, which has been audited and complies with the requirements of the International Safety Management Code for the Safe Operation of Ships and for Pollution Prevention (ISM Code) for Other Cargo Ships and Mobile Offshore Drilling Units. In addition, Helix WOUK QHSE Management system has also been audited and found to conform to the Environmental Management Standard ISO 14001:2015.
Environmental objectives are set annually as part of Helix WOUK’s Annual QHSE Improvement Plan, and these include targets related to spills/releases, waste, and energy consumption.
Helix WOUK has been subject to Energy Saving Opportunities Scheme (ESOS) Energy Audits and has an ESOS Action Plan which is reviewed and submitted during each ESOS compliance period. In compliance with MARPOL Annex VI, Helix WOUK has Ships Energy Efficiency Management Plans (SEEMP) for the Seawell and Well Enhancer vessels. Vessel SEEMP’s contain vessel specific energy improvement goals/measures and are maintained on an ongoing basis.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
In addition, Helix WOUK monitors customer satisfaction and feedback regarding overall quality, health, safety, and environmental performance. This includes a feedback form and an after-action review with client. Helix WOUK holds an Achilles certificate of membership and is subject to Achilles/FPAL Quality, Health, and Safety, Environmental and Training & Competence Verify Audits. In addition, Helix WOUK has a certificate of registration to SEQual, which is designed to support efficient procurement and reduce business risk in the oil and gas industry.
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
The directors present their report and the financial statements for the year ended 31 December 2025.
The loss for the year, after taxation, amounted to £18,261,000 (2024 - profit £23,364,000).
The directors do not recommend the payment of a dividend (2024 - £NIL).
The directors who served during the year were:
Certain directors benefited from qualifying third-party indemnity provisions in place during the financial year and at the date of this report.
2026 is anticipated to be a more favourable year than 2025, with an upward trend in utilisation expected. Several contract awards are in place, with strong interest in the vessels for 2026 and beyond, both in the North Sea and internationally.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
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 2025
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
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies and then apply them consistently;
∙make judgments 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; and
∙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 HELIX WELL OPS (UK) LTD
We have audited the financial statements of Helix Well Ops (UK) Ltd (the 'Company') for the year ended 31 December 2025, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, 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 101 ‘Reduced Disclosure Framework’ (United Kingdom Generally Accepted Accounting Practice).
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.
We have nothing to report in this regard.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF HELIX WELL OPS (UK) LTD (CONTINUED)
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 HELIX WELL OPS (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 considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
∙timing and completeness of revenue recognition
∙compliance with relevant laws and regulations which may impact on the financial statements and those that the company needs to comply with for the purpose of trading
∙management judgements applied in calculating provisions
∙management override of controls to manipulate the Company's key performance indicators to meet targets
We discussed these risks with client management, designed audit procedures to address these risks including:
∙testing a sample of sales transactions to source documents and vouching recognition is in the correct period
∙reviewed internal documentation and correspondence with regulators for evidence or irregularities
∙consideration of the assumptions applied whether the judgements applied in calculation of provisions were appropriate
∙reviewed areas of judgements and tested a sample of journal entries for indicators of management bias
∙performed analytical procedures to identify any unusual or unexpected relationships which may be an indication of material misstatement due to fraud.
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 HELIX WELL OPS (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
Kingshill View
Prime Four Business Park
Kingswells
AB15 8PU
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STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
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STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2025
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STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 25 to 47 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Helix Well Ops (U.K.) Limited (the "Company") is a private company incorporated, domiciled and registered in Scotland in the UK. The registered number is SC231293 and the registered address is 13 Queen's Road, Aberdeen, AB15 4YL.
The Company is exempt by virtue of section 401 of the Companies Act 2006 from the requirement to prepare group financial statements. These financial statements present information about the Company as an individual undertaking and not about its group. The financial statements are presented in Sterling, which is the functional currency, and are rounded to the nearest thousand pounds (£'000). These financial statements present information about the company as an individual undertaking and not about its group.
2.Accounting policies
The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
In preparing these financial statements, the Company applies the recognition, measurement and disclosure requirements of UK-adopted international accounting standards (“UK-adopted IFRS”), but makes amendments where necessary in order to comply with Companies Act 2006 and has set out below where advantage of the FRS 101 disclosure exemptions has been taken.
The Company has taken advantage of the following disclosure exemptions under FRS 101:
∙the requirement of IFRS 7 Financial Instruments: Disclosures;
∙the requirement of IAS 7 Statement of Cash Flows;
∙the requirement of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors;
∙the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures;
∙the requirement of paragraphs 130(f)(ii), 130(f)(iii), 134(d)-134(f) and 135(c)-135(e) of IAS 36 Impairment of Assets.
This information is included in the consolidated financial statements of Helix Energy Solutions Group, Inc as at 31 December 2025 and these financial statements may be obtained from 400 N. Sam Houston Parkway E., Suite 400, Houston Texas, 77060 3500.
The accounting policies set out below have, unless otherwise stated, been applied consistently to all periods presented in these financial statements.
Judgements made by the directors, in the application of these accounting policies that have significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are discussed in note 3.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Notwithstanding net current liabilities of £72,764,000, the financial statements have been prepared on a going concern basis, which the directors consider to be appropriate for the following reasons.
Included within amounts owed to group undertakings is a loan note payable to the Company's immediate parent entity for £113,965,000. The immediate parent company has provided the expectation this loan will not be recalled to the detriment of the company's working capital requirements. In exception of this loan note, the Company carries net current assets of £41,201,00, following a loss for the year then ended of £18,261,000 to 31 December 2025. At the financial year-end, the Company had net assets of £81,567,000 and a positive cash balance of £33,947,000. The Company has no external borrowings. The directors have prepared projected cash flow information for the twelve months from the date of approval of these financial statements which includes an additional prudent but reasonably plausible downside scenario in which revenues are restricted through lower levels of asset utilisation throughout the forecasted period. This assessment is dependent on the Company's ultimate parent company, Helix Energy Solutions Group, Inc not seeking repayment of the amounts currently due to the group within 12 months from the date of approval of these financial statements, which at 31 December 2025 amounted to £121,845,000 and the severe downside forecast demonstrates that no additional financial support should be required. Helix Energy Solutions Group, Inc has indicated its intention to continue to make available such funds as are needed by the Company, and that it does not intend to seek repayment of the amounts due at the balance sheet date, for the period covered by the forecasts. The directors have considered the financial position of the group and parent company, and they have considered that the parent company has the ability to continue with this support. As with any company placing reliance on other group entities for financial support, the directors acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statement, they have no reason to believe that it will not do so, Consequently, the directors are confident that the Company will have sufficient funds to continue to meet its liabilities as they fall due for at least twelve months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.
Page 26
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
Page 27
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the Company is expected to be entitled in exchange for transferring goods or services to a customer. For each contract with a customer, the Company:
∙Identifies the contract with the customer.
∙Identifies the separable performance obligations in the contract.
∙Determines the overall transaction (contract) price, allowing for estimates of variable consideration and the time value of money.
∙Allocates the transaction price across the separable performance obligations on the basis of the relative stand alone selling prices of each distinct good or service to be delivered, applying any overall discounts across the entire contract (or on specific performance obligations if more appropriate).
∙Recognises revenue when, or as, each performance obligation is satisfied in a manner that reflects the transfer of control of the goods or services promised to the customer.
The variable consideration within the transaction price, if any, reflects concessions provided to the customer such as discounts, rebates and refunds and any other contingent events. Such estimates are determined using the expected value method and are only recognised when they are highly probable. If any uncertainty exists with respect to a potential refund of the variable consideration received, this consideration is recognised as deferred revenue until the uncertainty is resolved. (i) Rendering of Services The Company recognises revenue for service performance obligations over time as those services are fulfilled. The revenue will be based either on a fixed price or on an hourly/day rate. When a fixed price is used the Company assesses the stage of fulfillment based on a cost input method. Where the rendering of services includes rental income which is not considered to be lease income, the rental income element is recognised on a straight line basis over the contract period in accordance with quoted day rates. Where the contract for rental income meets the definition of a lease, revenue is also recognised on a straight line basis over the contract period but is disclosed separately from contracts with customers. Revenues from the provision of project managed subsea intervention services are derived from contracts that are typically of short duration. These contracts contain either lump-sum turnkey provisions or provisions for specific time, material and equipment charges, which are billed in accordance with the terms of such contracts. These contracts contain either lump sum turnkey provisions recognised on a percentage of completion basis (POC), or provisions for specific time, material and equipment charges, which are billed in accordance with the terms of such contracts.
Page 28
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
(ii) Mobilisation and demobilisation services
Where contracts contain specific mobilisation and demobilisation services, the Company evaluates whether these are separate performance obligations within the contract. When deemed as separate performance obligations, revenue for these services is accounted for separately and recognised at a point in time. This is normally when each service is fully completed. In other cases, revenue is recognised over time as an integral part of the contract.
(iii) Contracts with a significant financing component
Contracts containing a significant financing component, where the customer pays more than twelve months in advance of receiving the goods or services, the time value of money is incorporated into the transaction price and an implicit interest expense is subsequently recorded within finance costs at the rate embedded within the contract. This treatment recognises the effective borrowing period by the Company for any such advance receipts up to the point at which the performance obligation is fulfilled and revenue recognised.
Where contracts have a significant financing component but the financing period is less than twelve months, the Company has elected to use the practical expedient permitted by paragraph 63 of IFRS 15 and not adjust the transaction price for this financing element.
Contract costs
Contract costs represent incremental costs of obtaining a contract and the costs incurred to fulfil it. Incremental costs of obtaining a contract with a customer are deferred when it is expected that these costs will be recoverable. These costs are then amortised on a straight line basis over the term of the contract.
Costs to obtain a contract that are incurred regardless of whether or not the contract is obtained, or costs which are not otherwise recoverable from the customer, are expensed immediately to the income statement. Incremental costs of obtaining a contract where the contract term is less than one year are also immediately expensed to the income statement.
Contract assets
Contract assets are recognised when the Company has satisfied the performance obligations in a sales contract and have either not recognised a receivable to reflect its unconditional right to the consideration or, the consideration is not yet due. Contract assets are treated as financial assets for impairment purposes and therefore subject to impairment reviews on the same basis as trade and other receivables.
Contract liabilities
Contract liabilities are recognised when a customer pays consideration or when the Company recognises a receivable to reflect its unconditional right to consideration (whichever is earlier), prior to the Company transferring the goods to, or performing the services for, that customer. The liability represents the Company’s responsibility to fulfil the contractual performance obligations for which it has already been paid.
Page 29
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Grants for revenue expenditure are presented as part of the profit or loss in the periods in which the expenditure is recognised.
Defined contribution pension plan
The Company operates 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 Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
Page 30
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme). Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period. Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.
Page 31
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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.
Depreciation is provided on the following basis:
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 carrying values of tangible fixed assets are reviewed for impairment if events or changes in circumstances indicate the carrying vale may not be recoverable, and are written down immediately to their recoverable amount.
The Seawell's useful life of 15 years is based on an estimate of key components installed during the major refit and the existing hull in 2015.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.
The Company recognises financial instruments when it becomes a party to the contractual arrangements of the instrument. Financial instruments are de-recognised when they are discharged or when the contractual terms expire. The Company's accounting policies in respect of financial instruments transactions are explained below:
Financial assets and financial liabilities are initially measured at fair value.
Financial assets
All recognised financial assets are subsequently measured in their entirety at either fair value or amortised cost, depending on the classification of the financial assets.
Fair value through profit or loss
Impairment of financial assets
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Financial liabilities
Fair value through profit or loss
At amortised cost
The carrying amounts of the Company’s non financial assets, other than deferred tax assets, 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 profit or loss. In respect of other assets, 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 if there has been a change in the estimates used to determine the recoverable amount. 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.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods which are affected by those revisions. The key assumptions concerning the future, and other key sources of estimation uncertainty at the balance sheet date, that have a significant risk of causing a material adjustment to the carrying amounts of the assets and liabilities within the next financial year, are discussed below; i. Depreciation rates and residual tangible fixed assets As described in the tangible asset accounting policy, the Company depreciates fixed assets over its assessment of their useful estimated useful lives less estimated residual values using a straight line basis. The useful lives range between 30 months - 15 years with residual values estimated at nil. The Company considers maintenance policies and industry standards in determining the useful lives of assets. ii. Impairment assessments As described in the tangible asset accounting policy, the carrying values of tangible fixed assets are reviewed for impairment annually. If events or changes in circumstances indicate the carrying value may not be recoverable, they are written down immediately to their recoverable amount.
Analysis of turnover by country of destination:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 36
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 37
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 38
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 39
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
13.Taxation (continued)
There were no factors that may affect future tax charges.
Page 40
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 41
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
14.Tangible fixed assets (continued)
Page 42
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 43
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
There is a fixed charge over specific assets of the Company in favour of the bank.
Page 44
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Page 45
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
The Company operates a Group Personal Pension plan with Standard Life on a defined contribution basis. The Company’s commitment is expressed as a percentage of the employee’s pensionable salary. Amounts accrued at 31 December 2025 were £69,000 (2024 - £77,000).
Page 46
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Subject to shareholder approval, Hornbeck and Helix shareholders will own 55% and 45% of the company respectively. The transaction is expected to close later in 2026. The strategic combination will create a recognised leader in offshore operations through a diversified and expanded high specification fleet of specialised vessels, supported by subsea robotics, well intervention and technical service capabilities across several sectors.
The Company’s immediate parent company is Helix Energy Solutions (U.K.) Limited, a company
incorporated in Scotland. The Company’s ultimate parent company is Helix Energy Solutions Group, Inc., a company incorporated in the United States. The largest and smallest group which the results of the Company are consolidated is that headed by Helix Energy Solutions Group, Inc. The consolidated accounts of this company are available to the public and may be obtained from 400 N. Sam Houston Parkway E., Suite 400, Houston Texas, 77060-3500.
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