Financial results Q1 2007

The Group's EBITDA was USD 9.5 million (USD 7.2 million) in the first quarter. Total revenue amounted to USD 97.8 million (USD 19.4 million), of which construction contract revenue related to the conversion of YÙUM K'AK'NÁAB amounted to USD 65.8 million (USD 0.0 million). The increase in EBITDA and revenue was primarily attributable to increased activity with additional units operating.

 

Capital expenditures related to YÙUM K'AK'NÁAB (presented as Construction contract expenses) in the first quarter were USD 65.8 million (USD 0.0 million). No profit is recognized in the income statement and only revenue equal to the capital expenditures in the first quarter is taken as revenue. The FPSO left the conversion yard in Singapore in January 2007 and was imported into Mexico on 21 March 2007. First oil is expected in the second quarter of 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. At the present time work is ongoing in order to start up the Shell terminal.

Share of profit of associates of USD 1.0 million (USD 0.0 million) relates to the Group's investments in APL PLC and Prosafe SE. At 31 March 2007 the Group owned 26.8% in APL and 24.3% in Prosafe.

 

Operating expenses were USD 18.5 million (USD 7.7 million) in the first quarter. The increase in operating expenses is attributable to increased activity with additional units operating and provision for doubtful debt of USD 5.3 million recorded in the first quarter 2007.

 

Administrative expenses were USD 5.0 million (USD 4.5 million) in the first quarter. The increase was primarily attributable to additional office staff, increased activity and moving of the Group's offices in Norway to a new location.

 

Net financial items for the first quarter amounted to USD 26.9 million (USD -5.0 million), of which a net change in fair value of derivatives (CIRR-options and an option to acquire shares in Prosafe) of USD 27.8 million (USD 0.0 million) is included. The option to acquire 39.4 million shares in Prosafe at NOK 86 per share was granted by Bergesen Worldwide Limited on 18 January 2007. The Group exercised the option on 23 March 2007.

 

The net profit in the first quarter amounted to USD 29.2 million (USD -3.9 million).

 

 

 

For the full financial report, please see the attached link. Please also visit www.bwoffshore.com for the Q1 2007 presentation and the recorded webcast from the presentation.