Financial report Q4 2006

 

The Group's EBITDA was USD 12.2 million (USD -0.5 million) in the fourth quarter. Total revenue amounted to USD 125.2 million (USD 12.5 million), of which construction contract revenue related to the conversion of YÙUM K'AK'NÁAB amounted to USD 91.7 million (USD 0.0 million). The increase in EBITDA and revenue was primarily attributable to increased activity with additional units operating.

The YÙUM K'AK'NÁAB conversion is on schedule and the cost is within budget. Capital expenditures (presented as Construction contract expenses) in the fourth quarter were USD 91.7 million (USD 0.0 million) The FPSO left the conversion yard in Singapore in January 2007 and is now sailing towards Mexico with an estimated date of arrival in the middle of March 2007 with expected first oil by the end of April 2007.

Berge Okoloba Toru operates in the Bonny River delta in Nigeria. She receives a gas stream from the onshore Shell terminal for further processing. The Shell terminal has been shut down temporarily due to terrorist acts by local militant groups. Global, the charterer of the Berge Okoloba Toru, has served a notice of force majeure, which came into effect on 15 September 2006. At the present time, work is ongoing in order to start up the Shell terminal again and we expect operations of the Berge Okoloba Toru to start up in the near future.

 

Operating expenses were USD 16.4 million (USD 10.6 million) in the fourth quarter. The increase in operating expenses is attributable to increased activity with additional units operating.

 

Administrative expenses were USD 4.9 million (USD 2.4 million) in the fourth quarter. The increase was primarily attributable to higher manning, increased activity and moving of the Group's offices in Norway to a new location.

 

Net financial costs for the fourth quarter amounted to USD -1.1 million (USD -1.4 million), of which a net change in fair value of derivatives of USD -1.0 million (USD 0.0 million) is included.

The net profit amounted to USD 3.5 million (USD -6.3 million), resulting in a net profit for the year to date of USD 4.5 million (USD 2.9 million).

 

Total assets amounted to USD 879.0 million (USD 486.8 million). The increase in total assets is a result of the ongoing conversions of YÙUM K'AK'NÁAB (presented as Construction contract receivable) and BW Endeavour, an increase in trade receivables due to increased activity with additional units operating and insurance receivables from Berge Helene and Berge Okoloba Toru operations.

 

 

Board of Directors, 26 February 2007

 

 

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