Q4 2007 report and presentation - Developed a world class company
Please find the Q4 2007 Interim Consolidated Financial Information. BW Offshore will host a presentation of the financial results at 09:00 (CET) today at "Shippingklubben" (Haakon VII gt 1, Oslo). The presentation will also be broadcasted via webcast. Please visit www.bwoffshore.com for login-details. The links to the Q4 2007 report and presentation are included at the end of the document.
MAIN FIGURES
(Figures in brackets refer to corresponding figures for 2006)
EBITDA was USD 18.8 million (USD 12.2 million) in the fourth quarter. The increase in EBITDA is primarily attributable to increased activity arising from the acquisition of Advanced Production & Loading Plc (APL), an additional vessel (YÙUM K'AK'NÁAB) in operation and share of profit of associates.
Total revenue amounted to USD 116.8 million (USD 125.2 million). The decrease in revenue is a result of no revenue recorded in the fourth quarter 2007 related to YÙUM K'AK'NÁAB conversion (USD 91.7 million) set off by revenue from the inclusion of APL of USD 68.4 million (USD 0.0 million).
Operating expenses in the fourth quarter totaled USD 102.7 million (USD 113.0 million). Operating expenses for Floating production were reduced from USD 113.0 million in the fourth quarter 2006 to USD 47.0 million in the fourth quarter 2007, primarily attributable to no expenses included related to the YÙUM K'AK'NÁAB conversion. Operating expenses related to Technology and Installation services amounted to USD 55.7 million in the fourth quarter (USD 0.0 million).
Share of profit of associates amounting to USD 4.7 million (USD 0.0 million) relates to the Group's investments in Prosafe SE (USD 4.6 million) and Nexus Floating Production Limited (Nexus) (USD 0.1 million). At 31 December 2007, the Group owned 26.5% of the shares in Prosafe and 49.7% of the shares in Nexus.
Net financial items for the fourth quarter amounted to USD -17.8 million (USD -1.1 million). The reduction
in net financial result relates to increased financing expenses arising from the acquisitions of shares in Prosafe and APL, increased capital expenditure related to vessels in operation and conversion candidates, and a loss in fair value on an interest collar agreement.
in net financial result relates to increased financing expenses arising from the acquisitions of shares in Prosafe and APL, increased capital expenditure related to vessels in operation and conversion candidates, and a loss in fair value on an interest collar agreement.
Net result after tax in the fourth quarter amounted to USD -16.0 million (USD 3.5 million).
Total assets amounted to USD 2,989.5 million at 31 December 2007 (USD 952.8 million). The increase in total assets is a result of the conversions of YÙUM K'AK'NÁAB and BW Peace, increased activity from the acquisition of APL and Prosafe shares, and the acquisition of the vessels BW Carmen, BW Pioneer and M/T Tiara.
Total equity amounted to USD 1,511.1 million at 31 December 2007 (USD 383.4 million).
Cash flow from operating activities in the fourth quarter 2007 was USD 15.2 million (USD 5.7 million). The positive cash flow relates to an decrease in working capital in the technology segment. Cash flow from investing activities was negative due to the acquisitions of M/T Tiara and additional shares in Prosafe SE, and expenditures related to the Cascade Chinook project and the conversion of BW Peace.
BUSINESS SEGMENTS
Floating production
EBITDA for the fourth quarter amounted to USD 6.0 million (USD 12.2 million). The reduction is primarily a result of high operating expenses for YÙUM K'AK'NÁAB (which commenced operation in July 2007) and the other vessels in operation, high tender activity and increased administrative expenses arising from the strengthening of NOK against USD. Share of profit of associates (Prosafe SE) amounting to USD 4.6 million (USD 0.0 million) are included in the fourth quarter 2007 figures.
Cash flow from operating activities in the fourth quarter 2007 was USD 4.2 million (USD 5.7 million). The positive cash flow relates to a decrease in working capital.
Technology & Installation Services
EBITDA for the fourth quarter amounted to USD 12.8 million. The EBITDA-margin was 18.7%. The revenues in the fourth quarter were USD 68.4 million, of which the most significant events were the delivery of the swivel on the Maari project and the Aker Floating Production Reliance MAD6 Buoy and Mooring. Share of profit from associates (Nexus Floating Production) amounted to USD 0.1 million in the fourth quarter.
Cash flow from operating activities in the fourth quarter was positive by USD 11.0 million. Reduction in working capital related to ongoing projects is the main reason for this development.
Board of Directors, 14 February 2008
For further information, please contact:
Svein Moxnes Harfjeld, CEO BW Offshore, +47 4140 4886
Knut R. Sæthre, CFO BW Offshore, +47 9111 7876
BW Offshore is one of the world's leading FPSO contractors and a market leader within advanced offshore loading and production systems to the oil and gas industry. BW Offshore has 25 years' experience and has successfully delivered 12 FPSO projects and 42 turrets and offshore terminals. BW Offshore's technology division APL has delivered solutions for production vessels, storage vessels and tankers in a wide range of field developments. Adapting through competence, in-house technology, solid project execution and operational excellence, BW Offshore ensures that customer needs are met through versatile solutions for offshore oil and gas projects. BW Offshore is headquartered in Norway, and has a global network with offices in Europe, Asia Pacific, West Africa and the Americas. BW Offshore has 1,000 employees and is listed on the Oslo Stock Exchange. For more information, please visit www.bwoffshore.com and www.apl.no.