Operating revenue in Q1 2009 amounted to USD 99.3 million (USD 108.3 million in Q1 2008). The decrease in revenue on a consolidated level is a result of increased intercompany activity related to FPSO-projects and a decrease in revenue against external customers.
Adjusted EBITDA (EBITDA before share of profit related to associates) was USD 28.5 million (USD 6.6 million), while EBITDA before adjustments was negative USD 10.7 million (USD 15.8 million) in the period. Changes in market values of currency derivative instruments related to operating cash flows are included in EBITDA. For the first quarter this amounted to a gain of USD 7.3 million (USD 0.0 million).
Share of profit of associates was USD -39.2 million (USD 9.2 million) in the first quarter and relates to the investments in Prosafe Production Public Limited and Nexus Floating Production Ltd. At 31 March 2009, BW Offshore owned 23.9% of the shares in Prosafe Production and 49.7% of the shares in Nexus. After the share of loss of USD 39.5 million in Nexus, the book value of the shares in Nexus is USD 0.0 million.
Net debt amounted to USD 709.1 million at 31 March 2009 (USD 968.4 million). BW Offshore is fully funded for all ongoing projects. Cash flow from existing units is secure and with reputable clients. Additional financial capacity is available for new projects if they should meet the targeted returns.
The operating expenses for the existing fleet in operation has come down compared to previous quarters. The oil process uptime was 100.0% in first quarter 2009.
The FPSO BW Cidade de Sao Vicente arrived in Brazil on schedule in March 2009. First oil was received 25 April 2009. The FPSO is operating for Petrobras at the Tupi field. The ongoing conversion of the BW Pioneer for the Petrobras Cascade & Chinook fields is continuing in line with expectations.
All major technology and installation projects, such as Cascade & Chinook, Pazflor for Total, Peregrino for Maersk and Neptune for Suez, are progressing according to plan.
BW Offshore's FPSO BW Pioneer is in the process of being converted and will commence operation in 2010. This vessel and the newly delivered FPSO Cidade de São Vicente, will together with the improved performance from YÙUM K`AK`NÀAB, contribute to an increased EBITDA for the Floating Production segment in 2009 and onwards.
The Technology and Installation segment although affected by the short term reduction in E&P activity will continue to see good activity in the short term due to the current order backlog. It is expected that longer term activity will pick up again with the anticipated increase in new developments.
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 login details.
Bermuda, 19 May 2009
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 13 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.