Q2 2010: Interim consolidated financial information
(Thomson Reuters ONE) -
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* EBITDA of USD 22.4 million in Q2 2010, before results from associates
* Signed contract for a gas FPSO for the TSB project (Indonesia)
* Signed contract for the completion of FPSO OSX-1 (Brazil)
* Established a new bridging credit facility of USD 1.1 billion
* Voluntary exchange offer to acquire all issued and outstanding shares in
Prosafe Production Limited
BW Offshore hosts a presentation of the financial results at 09:00 (CET) today
at 'Shippingklubben` (Haakon VII gt 1, Oslo, Norway). The presentation will be
given by CEO Carl K. Arnet and CFO Knut R.Sæthre. The presentation will be
broadcasted via webcast, and will also be available for replay. Please visit
www.bwoffshore.com for link and login details, as well as important legal
disclaimers.
(Figures in brackets refer to corresponding figures for 2009)
Consolidated operating revenues were down USD 16.1 million to USD 98.8 million
compared to USD 114.9 million in Q2 2009. Revenues from the FPSO segment
increased by USD 22.2 million offset by a USD 38.3 million decrease in the APL
segment.
The increase in revenues in the FPSO segment is mainly a result of the FPSO BW
Cidade de São Vicente operating a full quarter, improved operation for the BW
Offshore fleet and revenue recognised on the Papa Terra contract. The revenues
in the FPSO segment in Q2 2009 included a settlement with insurance companies.
The decrease in revenue in the APL segment in Q2 2010 compared to Q2 2009 is due
to the high activity level experienced in Q2 2009.
Consolidated operating expenses were down USD 8.7 million to USD 76.4 million
compared to USD 85.1 million in Q2 2009. Expenses from the FPSO segment
increased by USD 23.3 million, offset by a USD 32.0 million decrease in the APL
segment.
The increase in expenses in the FPSO segment is mainly a result of expenses
recognised on the Papa Terra project and the negative changes in fair market
values of currency hedges of USD 5.7 million compared to a gain of USD 0.8
million in Q2 2009.
The EBITDA for the quarter was down USD 9.3 million to USD 22.5 million compared
to USD 31.8 million in Q2 2009. The EBITDA before transactions related to
associates was USD 22.4 million compared to USD 29.8 million in Q2 2009.
The share of profit of associates was USD 0.1 million (USD 2.0 million) in the
quarter and relates to the investments in Prosafe Production Limited (PROD). At
30 June 2010, the Company held 23.9% of the shares in PROD.
Net financial items were down USD 35.2 million to a negative USD 28.9 million
compared to a net gain of USD 6.3 million in Q2 2009. The company has hedging
policies in place with the overall perspective to reduce the exposure in
currency and interest rate fluctuations. The negative development in the
financial items was mainly due to changes in fair market value on financial
instruments of USD 19.3 million compared to a gain of USD 10.7 million in Q2
2009.
The result before tax was reduced by USD 47.3 million ending with a loss of USD
23.7 million compared to a profit of USD 23.6 million in Q2 2009. The
development in interest rates and foreign currency movements during the quarter
has affected the result for the quarter negatively by USD 27.9 million. The
income tax expense increased by USD 2.3 million to USD 4.1 million compared to
USD 1.8 million in Q2 2009.
Net loss was USD 27.8 million compared to a net profit of USD 21.8 million in Q2
2009.
At 30 June 2010, the total assets amounted to USD 2,402.6 compared to USD
2,324.4 million at 30 June 2009. The net increase of USD 78.2 million mainly
relates to an increased book value of vessels' ongoing conversion, increased
cash and deposits offset by reduced receivables and CIRR deposits.
The total equity was down USD 32.2 million to USD 891.3 million at 30 June 2010
compared to USD 923.5 million at 30 June 2009. The decrease reflects the total
comprehensive loss for the period.
Net cash flow from the operating activities was USD 32.1 million (USD -18.1
million). The net cash outflow from the investing activities was USD 38.9
million (USD 93.9 million). The cash flow from the investing activities relates
mainly to the conversion projects in the FPSO segment. The net cash outflow from
financing activities was USD 106.9 million (cash inflow USD 95.5 million),
mainly arising from a net repayment of USD 100.0 million on the loan facility.
At 30 June 2010, the Company had USD 81.3 million (USD 43.7 million) in cash
and deposits. Currently, the Company has drawn USD 843.3 million on the USD
1,500 million credit facility. Net debt amounted to USD 785.5 million at 30 June
2010 (USD 827.3 million).
SEGMENTS
Floating Production
The revenues in the quarter were USD 74.6 million (USD 52.4 million). The EBITDA
was USD 19.3 million (USD 22.3 million). The difference compared to Q2 2009
reflects the improved operation of the BW Offshore fleet, the FPSO BW Cidade de
São Vicente in operation for a full quarter and the EBITDA included from the
Papa Terra project. These effects were offset by the negative development on
currency hedges in addition to the settlement with insurance companies included
in Q2 2009. The cash flow from operating activities in the second quarter was
USD 38.8 million (USD 14.7 million).
The FPSOs YÙUM K`AK`NÀAB, BW Cidade de São Vicente, Berge Helene and Sendje
Berge experienced stable performance during the second quarter resulting in an
oil process uptime of 99.9% during the period.
The FPSO BW Pioneer passed the initial inspections on the 25th August. The hook
up to the buoy will commence as soon as all systems are ready to start with the
pull-in. The FPSO will receive stand by day rate when the buoy is hooked up and
the vessel is prepared to start operations.
The ongoing conversion of the FPSO P-63 (the Papa Terra project) for Petrobras
is continuing in line with expectations. BW Offshore's main scope relates to the
marine conversion of the vessel BW Nisa. The project is accounted for as a
fixed-price construction contract, so the revenue from this project is
recognised in accordance with the "percentage of completion" (POC) accounting
method. The Company is receiving milestone payments from Petrobras throughout
the project period.
APL
The revenues in the quarter were USD 29.6 million (USD 77.2 million) with an
EBITDA of USD 3.2 million (USD 8.7 million), resulting in an EBITDA-margin of
10.8%. Cash flow from operating activities in the quarter was USD -6.7 million
(USD -32.8 million).
APL's main projects during the quarter have been the Cascade and Chinook project
for the FPSO division, terminal systems for the Hibernia project, Pazflor for
Total and Peregrino for Maersk. The projects have progressed according to
schedule.
During the quarter APL has increased its backlog with signed agreements for
delivering of systems to the Goliat FPSO, to the OSX-1 FPSO and to the TSB FPSO.
OUTLOOK
The activity has improved during the first half-year and is progressing in line
with BW Offshore's expectations. The company expects a continued increase in
activity during the course of 2010.
BW Offshore is fully funded for all ongoing projects. The operating cash flow
from existing vessels is secure and long term, and arises from large national
oil companies. Additional financial capacity is available for new projects if
they should meet BW Offshore's targeted returns.
The commencement of operation of the FPSO BW Pioneer, as well as the FPSO
projects for Papa Terra and OSX, will contribute to a significant growth in the
EBITDA for the FPSO segment in the second half of 2010. The two new FPSO
contracts for the TSB and Athena fields will contribute to further growth in the
EBITDA in 2011 and 2012.
The APL segment, although still affected by the general reduction in Exploration
and Production in the energy sector, is experiencing an improved activity level
within both execution and business development. It is expected that this will
result in higher EBITDA for the second half year of 2010 and onwards.
About BW Offshore
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 more than 25 years' experience and has successfully
delivered 14 FPSO projects and 50 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 has a global network
with offices in Europe, Asia Pacific, West Africa and the Americas. BW Offshore
has 1,100 employees and is listed on the Oslo Stock Exchange. For more
information, please visit www.bwoffshore.com and www.apl.no.
This information is subject to the disclosure requirements according to section
5-12 of the Norwegian Securities Trading Act.
This announcement is not an offer for sale of any securities in the United
States. Securities may not be offered or sold in the United States absent
registration or an exemption from registration under the U.S. Securities Act. BW
Offshore Limited has not registered and does not intend to register any portion
of any offering of shares in the United States or to conduct a public offering
of any securities in the United States.
[HUG#1441444]
Q2 2010 report:
http://hugin.info/136844/R/1441444/385745.pdf
Q2 2010 presentation:
http://hugin.info/136844/R/1441444/385746.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: BW Offshore via Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 31.08.2010 - 07:31 Uhr
Sprache: Deutsch
News-ID 40494
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"Q2 2010: Interim consolidated financial information"
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