Q4 2009 and preliminary results 2009
- EBITDA of USD 30.5 million in the fourth quarter and USD 134.2 million for the year 2009, before results from associates
- FPSO BW Pioneer on its way to the Cascade & Chinook fields in the US Gulf of Mexico
- Signed contract for the Papa Terra FPSO with Petrobras
- Signed contract with major oil company for harsh environment offshore loading system
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.
Operating revenue amounted to USD 78.0 million (USD 126.4 million) in the fourth quarter 2009. The decrease in operating revenue is a result of lower activity in the APL segment.
Operating expenses in the fourth quarter amounted to USD 47.5 million (USD 111.7 million), a decrease resulting from both lower activity level in the APL segment amounting to USD 38.2 million and lower operating expenses in the Floating Production (FPSO) segment amounting to USD 26.0 million.
EBITDA was USD 19.8 million (USD -43.2 million) in the fourth quarter. EBITDA (EBITDA before share of profit related to associates and before write down and gain on shares) was USD 30.5 million (USD 14.7 million). Changes in market values of currency derivative instruments amounting to USD -0.1 million (USD 0.0 million) related to operating cash flows are included in the EBITDA.
Share of profit / loss (-) of associates was USD -10.7 million (USD -45.4 million) in the fourth quarter and relates to the investments in Prosafe Production Limited (PROD) and Nexus Floating Production Ltd (Nexus). Share of profit from PROD amounted to USD -10.7 million. As the book value of Nexus is USD 0.0 million, and there is no further obligation to be met, losses do not reduce the investment further; consequently the share of profit from Nexus is USD 0.0 million in the fourth quarter (USD 0.0 million). At 31 December 2009, the Company owned 23.9% of the shares in PROD and 49.7% of the shares in Nexus.
Net financial items for the fourth quarter were USD -1.3 million (USD -44.9 million). Interest expense was USD 5.3 million (USD 11.2 million) in the fourth quarter. The decrease in interest expenses is mainly a result of reduced interest rates. Interest income was USD 1.8 million (USD 5.0 million). Net financial items includes a reduction in the fair value of USD -0.2 million (USD -40.0 million) on interest derivative contracts.
Result before tax was USD -1.1 million in the fourth quarter (USD -273.0 million). Income tax expense amounted to USD 6.2 million (USD 6.0 million) in the fourth quarter.
At 31 December 2009, total assets amounted to USD 2,393.5 million (USD 2,301.4 million) and the total equity amounted to USD 920.9 million (USD 923.4 million). The increase in total assets is primarily a result of increased book value of conversion projects.
Net cash inflow from operating activities was USD 121.1 million (USD 15.0 million). Net cash outflow from investing activities was USD 96.7 million (USD 143.1 million). Cash flow from investing activities relates mainly to the conversion projects in the FPSO segment. Net cash inflow from financing activities was USD 1.2 million (cash inflow USD 26.1 million), mainly arising from a net drawdown of USD 5.0 million (USD 50.0 million) on the loan facility.
At 31 December 2009, the Company held USD 68.0 million (USD 67.7 million) in cash and deposits. Currently, the Company has drawn down USD 893.3 million on the USD 1,500 million credit facility. Net debt amounted to USD 849.3 million at 31 December 2009 (USD 870.0 million).
Revenues in the fourth quarter were USD 57.7 million (USD 55.8 million). EBITDA was USD 20.6 million (USD -42.0 million). Cash flow from operating activities in the fourth quarter was USD 123.5 million (USD 13.7 million).
The FPSOs YÙUM K`AK`NÀAB, BW Cidade de São Vicente, Berge Helene and Sendje Berge had stable performance during the fourth quarter resulting in an oil process uptime of 99.6% during the period.
The FPSO BW Carmen was in lay up for the entire quarter and is being marketed for new projects.
The FPSO BW Pioneer is currently on its way for operation on the Cascade & Chinook fields in the US Gulf of Mexico. The sail away from Singapore was delayed by approximately two months but the vessel is still expected to arrive on field within the contractual obligations.
The Papa Terra Joint Venture (Petrobras (operator) and Chevron), has concluded the contracting and negotiation process with the consortium of BW Offshore and the Brazilian industrial group QUIP for the FPSO P-63 for the Papa Terra field. The contract was signed 29 January 2010.
The revenues in the fourth quarter were USD 30.4 million (USD 112.2 million) with an EBITDA of USD 4.0 million (USD -2.5 million), resulting in a EBITDA-margin of 13.2% in the fourth quarter. The negative EBITDA in the fourth quarter 2008 included a share of negative results from associates of USD 12.5 million. Cash flow from operating activities in the fourth quarter was USD -2.4 million (USD 1.3 million).
The projects Cascade & Chinook for the FPSO division, two SAL harsh environment terminal systems for a Oil Major, Pazflor for Total and Peregrino for Maersk, are all progressing according to schedule.
The market activity has continued to pick up through the course of the fourth quarter in line with BW Offshore expectations. We expect the increase in activity to continue in 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 national oil companies. Additional financial capacity is available for new projects if they should meet the Company's targeted returns.
The Company's FPSO BW Pioneer is expected to arrive in US waters in March 2010. The vessel will contribute to a significant growth in the EBITDA for the FPSO segment. The APL segment, although still affected by the reduction in the Exploration & Production activity, is experiencing the improved activity level. It is expected that this will result in improved business prospects materializing in 2010.
Bermuda, 23 February 2010
For further information, please contact:
Carl K. Arnet, CEO BW Offshore, +65 9630 3290
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 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.