BW Offshore Q2 2008

BW Offshore’s operating profit was USD 23.4 million in the second quarter of 2008, with EBITDA of USD 34.5 million. The company has been very successful in obtaining new business over the past months, including a Letter of Intent for an FPSO in Australia, a Letter of Award for a deepwater offloading system in Angola and three installation campaigns. Also, BW Offshore’s FPSO conversions are progressing in line with expectations. During the second quarter, the company has also sold its shares in Prosafe SE with a solid profit. 

For the Floating Production segment, EBITDA for the second quarter was USD 21.6 million (USD 36.3 million). The first half-year of 2008 was influenced by higher than expected start-up costs regarding YÙUM K`AK`NÀAB, consequences of the challenging operating environment in the Niger Delta and lower than expected insurance settlement relating to Berge Helene. The ongoing conversions of the FPSOs BW Pioneer and BW Peace are in line with the expectations of the management of BW Offshore.

For the Technology & Installation Services segment, revenues in the second quarter were USD 114.5 million (USD 55.7 million) with an EBITDA of USD 12.9 million (USD 5.4 million), giving an EBITDA-margin of 11.6%. The figures reflect a higher activity level and improved margins. Major projects, such as Nexus, Chinook Cascade, Peregrino and Neptune are in production with no significant deviation from the plans. The order inflow during the first half year has been strong.

The Q2 report may be downloaded from here.