Q2 2009: Interim consolidated financial information
(Thomson Reuters ONE) - * Adjusted EBITDA of USD 29.8 million in second quarter before transactions relating to associates* BW Cidade de São Vicente successfully completed and put into operation at the Tupi field* Installation of the Neptune LNG Import Terminal offshore Boston commenced in June* Disciplined pursuit of market opportunitiesBW Offshore hosts a presentation of the financial results at 09:00(CET) tomorrow (1st of September) at `Shippingklubben` (Haakon VII gt1, Oslo, Norway). The presentation will be given by CEO Carl K. Arnetand CFO Knut R.Sæthre. The presentation will be broadcasted viawebcast, and will also be available for replay. Please visitwww.bwoffshore.com for link and login details.Figures in brackets refer to corresponding figures for 2008Operating revenue amounted to USD 114.9 million (USD 124.8 million).The decrease in revenue on a consolidated level is a result ofdecreased activity level in the Technology and Installation Servicessegment.Operating expenses in the second quarter amounted to USD 85.1 million(USD 124.7 million), a decrease resulting mainly from lower operatingexpenses for the operating fleet together with lower activity levelin the Technology and installation Services segment.EBITDA was USD 31.8 million (USD 34.5 million) in the second quarter.Adjusted EBITDA (EBITDA before share of profit related to associatesand before write down and gain on shares) was USD 29.8 million (USD0.1 million). Changes in market values of currency derivativeinstruments related to operating cash flows are included in theEBITDA. For the second quarter this amounted to a gain of USD 0.8million (USD 0.0 million).Share of profit/ loss (-) of associates was USD 2.0 million (USD -7.9million) in the second quarter and relates to the investments inProsafe Production Limited (PROD) and Nexus Floating Production Ltd(Nexus). Share of profit from PROD amounted to USD 2.0 million. Asthe book value of Nexus is USD 0.0 million, negative share of profitwill not reduce the investment further as there is no furtherobligations to be met, hence the share of profit from Nexus isincluded with USD 0.0 million in the second quarter (USD -0.4million). At 30 June 2009, the Company owned 23.9% of the shares inPROD and 49.7% of the shares in Nexus.Net financial items for the second quarter were USD 6.3 million (USD15.6 million). Interest expense was USD 6.7 million (USD 11.0million) in the second quarter. The decrease in interest expenses ismainly a result of reduced interest rates. Interest income was USD2.7 million (USD 3.9 million). Net financial items include anincrease in fair value of USD 10.7 million (USD 12.8 million) oninterest derivative contracts.Result before tax was USD 23.6 million in the second quarter (USD39.0 million). Income tax expenses amounted to USD 1.8 million (USD4.2 million) in the second quarter.At 30 June 2009, total assets amounted to USD 2,324.4 million (USD2,790.0 million), total equity amounted to USD 923.5 million (USD1,509.6 million). The reduction in total assets and equity overprevious year resulted mainly from impairment charges of associates,goodwill and the fleet offset by increased book value of the ongoingconversion projects carried out in 2008.Net cash outflow from operating activities was USD 18.1 million(inflow USD 11.1 million). Net cash outflow from investing activitieswas USD 93.9 million (cash inflow USD 574.5 million). Cash flow frominvesting activities relates to the conversion projects in theFloating Production segment. Net cash inflow from financingactivities was USD 95.5 million (cash outflow USD 314.6 million),arising from a net drawdown of USD 100.0 million (USD 0.0 million) onthe loan facility offset by interest payments.At 30 June 2009, the Company held USD 43.7 million (USD 328.3million) in cash and deposits. Currently the Company has drawn downUSD 872.3 million on the USD 1,500 million credit facility. Net debtamounted to USD 827.3 million at 30 June 2009 (USD 370.2 million).Floating ProductionRevenues in the second quarter were USD 52.4 million (USD 43.2million). EBITDA was USD 22.3 million (USD 21.6 million). Cash flowfrom operating activities in the second quarter was USD 14.7 million(USD -35.4 million).The operating expenses for the existing fleet in operation have comedown compared to previous quarters. The oil process uptime was 99.2%in second quarter 2009.The FPSO BW Carmen was laid up in the second quarter and is beingmarketed for new contracts.The FPSO YÿUM K`AK`NÿAB had a planned shutdown for modifications andrepairs in the second quarter. Operational disturbance during thestartup resulted in a reduced oil up time and flaring penalties. Thisresulted in reduced revenue and increased operating expenses for thisunit.The FPSO BW Cidade de São Vicente received first oil late April andhas since been operating successfully. Due to subsea problemsexperienced by Petrobras the unit is currently on standby at 95% offull rate due to lack of oil production.The FPSO Berge Okoloba Toru, with a book value of USD 0.0 million, isstill evacuated in Nigeria. During the second quarter the Companysettled the dispute with the insurance companies regarding the FPSO.The settlement is reflected in the second quarter EBITDA. Payment forthe settlement was received in the third quarter 2009.The ongoing conversion of the BW Pioneer for the Petrobras Chinook &Cascade field is continuing in line with expectations.Technology & Installation ServicesThe revenues (from external customers) in the second quarter wereUSD 62.5 million (USD 81.6 million) and EBITDA USD 9.5 million (USD12.9 million). Adjusting for the share of profit of the investment inNexus, EBITDA was USD 9.5 million, representing a margin of 12.3%(11.6%). Cash flow from operating activities in the second quarterwas USD -32.8 million (USD 46.5 million). The negative operating cashflow derives mainly from a negative change in the working capital.Due to the outlook the Company decided 24th August to reduce theworkforce associated with the Technology Segment to reflect theexpected workload going forward.All major projects, such as Chinook & Cascade, Pazflor for Total,Peregrino for Maersk and Neptune for Suez, are progressing accordingto schedule.OutlookThe effect of the turmoil in the financial markets and the lower oilprice has impacted negatively on the development of oil and gasfields internationally. In the short term this has resulted mainly inpostponements of new projects. It has also resulted in changes to thecompetitive landscape with fewer competitors pursuing new projects.We believe the impact of these postponements and the competitivesituation in our business is correctly reflected in the assessmentsof our assets.The Company is fully funded for all ongoing projects. Cash flow fromexisting units is secure and arises from reputable clients.Additional financial capacity is available for new projects if theyshould meet our targeted returns. Beyond this immediate horizon, weare of the opinion that the long-term fundamentals of our businessare sound. Underlying growth in energy demand combined withaccelerating depletion of existing fields, will necessitate thedevelopment of new oil and gas fields. The investments in newfacilities by international and national oil companies will lead tocontinuing demand for the services provided.The Company's FPSO BW Pioneer is in the process of being convertedand will commence operation in 2010. This vessel and the newlydelivered FPSO BW Cidade de São Vicente, will together with theimproved performance from YÿUM K`AK`NÿAB, contribute to an increasedEBITDA for the Floating Production segment in 2009 and onwards.The Technology and Installation segment, although affected by theshort term reduction in E& P activity is expected to see improvedactivity again as E&P activity picks up in second half of 2010.Bermuda, 31 August 2009For further information, please contact:Carl K. Arnet, CEO BW Offshore, +65 9630 3290Knut R. Sæthre, CFO BW Offshore, +47 9111 7876BW Offshore is one of the world`s leading FPSO contractors and amarket leader within advanced offshore loading and production systemsto the oil and gas industry. BW Offshore has more than 25 years'experience and has successfully delivered 14 FPSO projects and 50turrets and offshore terminals. BW Offshore's technology division APLhas delivered solutions for production vessels, storage vessels andtankers in a wide range of field developments. Adapting throughcompetence, in-house technology, solid project execution andoperational excellence, BW Offshore ensures that customer needs aremet through versatile solutions for offshore oil and gas projects. BWOffshore has a global network with offices in Europe, Asia Pacific,West Africa and the Americas. BW Offshore has 1,200 employees and islisted on the Oslo Stock Exchange. For more information, please visitwww.bwoffshore.com and www.apl.no.http://hugin.info/136844/R/1338479/319357.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 31.08.2009 - 18:20 Uhr
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