33153600 2017-01-01 2017-12-31 33153600 2016-12-31 fsa:ProposedDividendRecognisedInEquityMember 33153600 2017-01-01 2017-12-31 fsa:ContributedCapitalMember 33153600 2017-01-01 2017-12-31 Auditor 2 33153600 2017-12-31 33153600 2017-12-31 fsa:ProposedDividendRecognisedInEquityMember 33153600 2017-01-01 2017-12-31 cmn:ThreeYearsAgoMember 33153600 2017-12-31 fsa:ContributedCapitalMember 33153600 2016-01-01 2016-12-31 33153600 2017-01-01 2017-12-31 cmn:PreviousYearMember 33153600 2017-12-31 cmn:ThreeYearsAgoMember 33153600 2017-01-01 2017-12-31 cmn:FourYearsAgoMember 33153600 2017-12-31 cmn:FourYearsAgoMember 33153600 2016-12-31 33153600 2017-01-01 2017-12-31 cmn:TwoYearsAgoMember 33153600 2016-01-01 2016-12-31 fsa:ProposedDividendRecognisedInEquityMember 33153600 2017-01-01 2017-12-31 fsa:ProposedDividendRecognisedInEquityMember 33153600 2016-01-01 fsa:ContributedCapitalMember 33153600 2016-01-01 2016-12-31 fsa:ProposedDividendRecognisedInEquityMember 33153600 2017-01-01 2017-12-31 Board Member 2 33153600 2016-12-31 fsa:ContributedCapitalMember 33153600 2016-01-01 fsa:ProposedDividendRecognisedInEquityMember 33153600 2017-12-31 cmn:TwoYearsAgoMember 33153600 2017-01-01 2017-12-31 Board Member 3 33153600 2017-12-31 cmn:PreviousYearMember 33153600 2016-01-01 2016-12-31 fsa:ContributedCapitalMember 33153600 2017-01-01 2017-12-31 fsa:RetainedEarningsMember 33153600 2016-01-01 fsa:RetainedEarningsMember 33153600 2017-01-01 2017-12-31 Board Member 1 33153600 2017-01-01 2017-12-31 Auditor 1 33153600 2017-01-01 2017-12-31 fsa:ProposedDividendRecognisedInEquityMember 33153600 2017-01-01 2017-12-31 fsa:RetainedEarningsMember 33153600 2016-01-01 2016-12-31 fsa:RetainedEarningsMember 33153600 2017-01-01 2017-12-31 Chairman iso4217:USD xbrli:pure xbrli:shares Opinion In our opinion, the Financial Statements give a true and fair view of the financial position of the Company at 31 December 2017, and of the results of the Company’s operations for the financial year 1 January - 31 December 2017 in accordance with the Danish Financial Statements Act. Auditor's report on audited financial statements mne32201 true Deferred tax assets and liabilities Deferred income tax is measured using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes on the basis of the intended use of the asset and settlement of the liability, respectively. Deferred tax assets, including the tax base of tax loss carry-forwards, are measured at the value at which the asset is expected to be realised, either by elimination in tax on future earnings or by setoff against deferred tax liabilities within the same legal tax entity or within joint taxation. Deferred tax is measured on the basis of the tax rules and tax rates that will be effective under the legislation at the balance sheet date when the deferred tax is expected to crystallise as current tax. Any changes in deferred tax due to changes to tax rates are recognised in the income statement. Impairment of non-current assets The carrying amount of intangible assets, property, plant and equipment and investments in subsidiaries are reviewed on an annual basis to determine whether there is any indication of impairment other than that expressed by amortisation and depreciation. If so, the asset is written down to its lower recoverable amount. Balance sheet 2018-05-30 Per Gøbel There has been no changes to the share capital during the past five financial years. 11 Events after the balance sheet date A merger plan has been prepared by the boards of directors of Maersk Volve A/S and Maersk Drilling North Sea A/S. Maersk Drilling A/S holds all the shares in the two merging companies. Maersk Drilling North Sea A/S will be the continuing company and Maersk Volve A/S will be the discontinuing company. It is expected that the shareholders of the two merging companies will approve the merger with effect retroactively 1 January 2018. No further events other than above mentioned have occurred after the balance sheet date to this date which would influence the evaluation of this annual report. DK Other external cost Other external costs comprise expenses incurred during the year for bare boat hire of the rigs, repair and maintenance, catering, hired crew and administrative costs. Copenhagen Management's Review Maersk Volve A/S DK-2900 Hellerup Lyngby Maersk Volve A/S 9 Related parties The following related parties have a controlling interest in Maersk Volve A/S; The A.P. Møller og Hustru Chastine Mc-Kinney Møllers Fond til almene formaal, Copenhagen, Denmark and A.P. Møller Holding A/S has control over the Maersk Group. Other related parties with dominant influence include; A.P. Møller - Mærsk A/S, Esplanaden 50, 1098 Copenhagen K. Maersk Drilling A/S, Lyngby Hovedgade 85, 2800 Kgs. Lyngby. The parent company. Other related parties Subsidiaries and affiliates to A.P. Møller Holding A/S. Related parties also include the Board of Directors and leading employees and their family members. Related parties also include companies in which the above persons have significant interests. Development in activities and finances In Q4 2016 the company ended its activities on the leased rig Mærsk Inspirer and following that the company is now dormant. The result for the year amounts to USD (654)k [2016: USD (3,888)k] which is in line with management's expectations. Particular risks Financial exposure The Company's revenue is mainly denominated in USD, while costs are in USD and other currencies. The currency exposure is not considered to be significant. The Company has a small concentration of customers, but is not considered to have any credit risks. Sustainability At Maersk Drilling, we firmly believe that by conducting our operations through sustainable practices, we ensure a sound and viable business for the future. We have a responsibility to the people who work for Maersk Drilling, but also to the people and the environment which are affected by our company. Our major focus area is safety, but we also put much effort into the areas of e.g. local content as well as environment and climate. Please refer to our online Sustainability Report 2017 at http://www.maerskdrilling.com/, in which we provide a complete overview of Maersk Drilling’s work with sustainability and our sustainability performance. Safety It is our belief that fundamentally, safety is an active decision and the result of a serious commitment from all employees in Maersk Drilling, and we have an ambition of reaching zero incidents by 2018. Our people and the environment will only be safe with the right systems, procedures, technology, and a strong safety culture. Local content Training and developing the talent of local employees, assigning our third party code of conduct to local suppliers and transferring knowledge to local communities all continue to be a priority for Maersk Drilling. We want to move beyond compliance with local content requirements and to increase shared value by proactively engaging with stakeholders. Environment & climate Discharges, air emissions, and how we manage chemicals and waste are our primary focus areas when it comes to minimising the environmental impact of our operations. We work with our customers, local communities and internationally recognised bodies to ensure that environmental factors are integrated into our business principles and into operational practices. Strandvejen 44 The Company's main activities The Company's main activity is handling the ownership of the production unit Volve. The production unit Volve produces oil and is mounted on the drilling rig Mærsk Inspirer that operates on the Volve oil field in the Norwegian sector of the North Sea. 8 Employee remuneration Maersk Volve A/S has not had employees in 2017 and 2016. Personnel are hired from affiliates in the A.P. Møller - Mærsk Group. The Board of Directors has not been remunerated. In accordance with Sections 86(4) of the Danish Financial Statements Act, cash flow statement is omitted as this information is included in the consolidated Financial Statements for A.P. Møller - Mærsk A/S. Additional note disclosures required by reporting class C has been included in the financial statements. The accounting policies are unchanged from last year. 2800 Kgs. Lyngby Auditor’s Responsibilities for the Audit of the Financial Statements 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 auditor’s 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 and the additional requirements applicable in Denmark 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. As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. Independent Auditor's Report Conclude on the appropriateness of Management’s use of the going concern basis of accounting in preparing the financial statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern. Evaluate the overall presentation, structure and contents of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that gives a true and fair view. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. The annual report has been prepared in accordance with the Danish Financial Statements Act. Lyngby Financial highlights The financial highlights have been defined as follows: 10 Consolidation The consolidated financial statements of A.P. Møller - Mærsk A/S, Esplanaden 50, 1098 Copenhagen can be obtained by contacting this company or at its website The consolidated financial statements of A.P. Møller - Holding A/S can be obtained by contacting this company. Statement of the Board of Directors and Management In our opinion, the Financial Statements provide a true and fair view of the Company's assets, liabilities, and financial position 31 December 2017 and of the results of the Company's operations for the financial year 2017. It is also our opinion that the Management review includes a true and fair view of the development in the Company's operations and financial conditions, the results for the year and financial position. Translation policies Transactions in foreign currencies are translated at the exchange rates at the date of the transaction. Gains and losses arising due to differences between the transaction date rates and the rates at the dates of payment are recognised in financial income and expenses in the income statement. Receivables, payables and other monetary items in foreign currencies that have not been settled at the balance sheet date are translated at the exchange rates at the balance sheet date. Any differences between the exchange rates at the balance sheet date and the transaction date rates are recognised in financial income and expenses in the income statement. Fixed assets acquired in foreign currencies are measured at the transaction date rates. USD is used as functional currency and as presentation currency because the majority of transactions are in U.S. dollars. At 31 December 2017 the exchange rate DKK/USD was 620.77 (2016: 705.50). 2800 Kgs. Lyngby To the shareholder of Maersk Volve A/S Priya Saldanha Leth - Jørgensen 2016-12-31 Subsequent events A merger plan has been prepared by the boards of directors of Maersk Volve A/S and Maersk Drilling North Sea A/S for the purpose of undertaking a merger by absorption between the companies whereby Maersk Drilling North Sea A/S will be the continuing company and Maersk Volve A/S will be the discontinuing company. The merger shall be implemented by transfer of the discontinuing company’s assets and liabilities as a whole to the continuing company. The discontinuing company will be dissolved without liquidation in connection with the merger. Maersk Drilling A/S holds all the shares in the two merging companies. Following completion of formal requirements including publication of Declaration of on the Creditor’s Position it is expected that the shareholders of the two merging companies will approve the merger with effect retroactively 1 January 2018. Lyngby Hovedgade 85 Annual report 2018-05-30 Gross result In accordance with Section 32 of the Danish Financial Statements Act, revenue has not been disclosed in the Annual Report. The Company is jointly taxed with all other Danish companies in the A.P. Møller Holding Group. As a fully owned subsidiary, the Company has unlimited and joint liability together with the other companies under joint taxation for Danish company tax, withholding taxes on dividends, interest and royalties within the jointly taxed companies. In Q4 2016 the company ended its drilling activities on the leased rig Mærsk Inspirer and following that the company is now dormant. Klaus Greven Kristensen Property, plant and equipment Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses. The depreciation base is the cost prices less estimated residual value at the end of useful life. The cost price is the acquisition price and costs directly related to the purchase until the asset is ready for use. The cost of an asset is divided into separate components which are depreciated separately if the useful lives of the individual components differ. Gains and losses on sale of property, plant and equipment are calculated as the difference between the sales price less cost of sale and the carrying amount of the asset at the time of sale. Gains and losses are recognised in the income statement. Basisfor Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) and the additional requirements applicable in Denmark, 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. DK Statement on Management’s Review Management is responsible for Management’s Review. Our opinion on the financial statements does not cover Management’s Review, and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read Management’s Review and, in doing so, consider whether Management’s Review is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether Management’s Review provides the information required under the Danish Financial Statements Act. Based on the work we have performed, in our view, Management’s Review is in accordance with the Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement in Management’s Review. Independent Auditor's Report Management’s Responsibilities for the Financial Statements Management is responsible for the preparation of Financial Statements that give a true and fair view in accordance with the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, Management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the financial statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. 2018-05-30 Accounting policies Receivables Receivables are measured in the balance sheet at the lower of amortised cost and net realisable value, which corresponds to nominal value less provisions for bad debts. Provisions for bad debts are determined on the basis of an individual assessment of each receivable. 2017-12-31 Income statement 33153600 Tax on result for the year Tax for the year consists of current tax for the year and changes in deferred tax for the year. The tax attributable to the result for the year is recognised in the income statement, whereas the tax attributable to equity transactions is recognised directly in equity. The Company is part of A.P. Møller Holding A/S' joint taxation. The current Danish income tax is allocated among the jointly taxed companies proportionally to their taxable income (full allocation with refund concerning tax losses). Financial Highlights and Key Figures 2010-08-31 2018-05-30 Kim Danstrup Recognition and measurement Revenues are recognised in the income statement as earned. Furthermore, value adjustments of financial assets and liabilities measured at fair value or amortised costs are recognised. Moreover, all expenses incurred to achieve the earnings for the year are recognised in the income statement, including depreciation, write-downs and provisions and reversals as a result of changes in accounting estimates of amounts previously recognised in the income statement. Assets are recognised in the balance sheet when it is probable that future economic benefits attributable to the asset will flow to the Company, and the value of the asset can be measured reliably. Liabilities are recognised in the balance sheet when it is probable that future economic benefits will flow out of the Company, and the value of the liability can be measured reliably. Assets and liabilities are initially measured at cost. Subsequently, assets and liabilities are measured as described for each item below. Angela Durkin The Financial Statements of Maersk Volve A/S for 2017 have been prepared in accordance with the provisions of the Danish Financial Statements Act applying to mid-size enterprises of reporting class mid-size C. We recommend that the annual report be approved at the Annual General Meeting. mne30141 Revenue Revenue from drilling activities, which are typically carried out under long-term agreements with fixed day rates, revenue is recognised for the operating time related to the financial year. Leasing Lease income from operating leases is recognised over the lease term. Klaus Greven Kristensen Reporting class C, medium-size enterprise Basis for Opinion Dividend Dividend distribution proposed by Management for the year is disclosed as a separate equity item. 33153600 2017-01-01 Current tax receivables and liabilities Current tax liabilities and current tax receivables are recognized in the balance sheet as calculated tax on the taxable income adjusted for tax on prior years' taxable income and paid on account taxes. (Chairman) State Authorised Public Accountant Thomas Wraae Holm 33771231 2016-01-01 State Authorised Public Accountant Financial income and expenses Financial income and expenses are recognised in the income statement at the amounts relating to the financial year. The Board of Directors and Management have today discussed and approved the annual report for 2017 of Maersk Volve A/S. PricewaterhouseCoopers Deferred tax mainly relates to deferred tax on the carrying amount of the production facilities and equipment. The deferred tax asset is expected to be utilized by future taxable income in the Danish joint taxation. Management considers no significant risk related to the valuation of the asset. Financial debt Other debts are recognised at amortised cost, which, essentially corresponds to the nominal value. Lyngby Hovedgade 85 The share capital comprises 10,000 shares of DKK 100. 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