Annual report 2001

The market for offshore services vessels continued it positive development through the year. Demand for modern tonnage has been increasing on a worldwide basis with Brazil, West Africa, the Gulf of Mexico and the East/Australia as leading regional markets. The North Sea market has also remained strong through the year, and the general utilization of the fleet (AHTS and PSV) increased from approx. 90% to approx. 94%. For Solstad Offshore ASA, the North Sea and Brazil were the main geographical markets for its activities in 2001. At the turn of the year, the Company operated a fleet of 20 offshore vessels. Furthermore, the Company had 2 wholly owned and 5 partly owned vessels under construction.

In terms of vessels for laying and maintaining of fiber optic cable at sea, the market development has been negative during 2001. The Company’s 2 vessels within this segment are employed at long-term freight agreements until summer/autumn 2004.

Operation and utilization of the Company’s fleet has been very satisfying through the year, with only a few intermissions beyond planned maintenance. Focus on Health, Safety and Environment has been further increased, resulting in a decrease of Lost Time Incidents.