PROD - Interim Financial Statement for the 4th quarter of 2009
(Figures in brackets refer to the corresponding period of 2008)
Operating revenues for 4th quarter of 2009 were USD 90.4 million compared to USD 71.4 million for the same period in 2008.
Operating profit before depreciation amounted to USD 50.4 million (USD 35.8 million) for the fourth quarter. The main reason for the increase is FDPSO Azurite and FPSO Cidade de São Mateus which commenced operations during 2009. This was partly offset by the scheduled decline in the dayrate for FPSO Umuroa.
As reported to the market in connection with previous interim result announcements, the conversion of FPSO Ningaloo Vision was substantially delayed due to damages sustained during an electrical fire, as well as technical challenges on the steam systems and the gas compressors. As such, the total project cost ended up at a higher level than anticipated at the start of 2009. Moreover, the market value of M/T Takama, a VLCC sized single hull conversion candidate, has dropped further. Due to these factors, an impairment charge of USD 46.7 million has been recognised in the 4th quarter. Thus, operating result for the 4th quarter amounted to USD -26.5 million (USD -175.9 million). Excluding impairment charges, the operating profit for 4th quarter came in at USD 20.1 million (USD 20.9 million).
Interest expenses amounted to USD 11.3 million (USD 11.2 million) for the quarter. Other financial items amounted to USD 3.2 million (USD -4.3 million). The difference compared to the same period last year is mainly an effect of favourable changes in foreign exchange rates as well as change in value of hedging instruments.
The tax cost for the 4th quarter equalled USD 6.6 million (USD -3.8 million). Taxes in this quarter was higher than normal, as the company made adjustments to the tax position in New Zealand, as well as accounted for changes in deferred tax. Changes to deferred tax are largely related to currency fluctuation on assets and liabilities.
The net result for the 4th quarter totaled USD -41.1 million (USD -186.7 million). Excluding impairment charges the net profit was USD 5.6 million (USD 10.1 million).
As a result of investments in the new units, total assets amounted to USD 2,097 million (USD 1,985 million) as of 31 December 2009. Equity amounted to USD 814 million (USD 806 million), resulting in a book equity ratio of 39%. Net interest-bearing debt amounted to USD 1,018 million (USD 822 million).
Reidar Lund, Chairman of the Board, has informed the Election Committee that he will not seek re-election on the Annual General Meeting in May.
Conference call and web cast
Management will hold a teleconference/web cast to go through the results and discuss the outlook for the business at CET 2.00 p.m. There are two alternatives to listen in to the presentation:
1. Webcast
Please refer to link www.prosafeproduction.com to follow the webcast.
2. Teleconference
Please call in at one of the following numbers:
Norway Toll Free 800 19640
International call +44 20 7806 1951
UK Toll Free 0800 028 1243
USA Toll Free 1888 935 4575
The participants will be asked for their name, company and conference ID code. The Prosafe Production conference ID code is: 2046791
There will be a Q&A session after the presentation and questions can be asked both on the conference call and through the web cast.
In order to view the presentation held while listening to the conference, please download the presentation material from www.prosafeproduction.com.
The conference will be available for replay at www.prosafeproduction.com.
About Prosafe Production
Prosafe Production is a leading owner and operator of Floating Production, Storage and Offloading vessels (FPSOs). Prosafe Production has 25 years of operational experience from several of the world's largest oil and gas provinces. The company has a good operational uptime track record and possesses a range of proprietary FPSO-related technologies. Prosafe Production operates globally and employs approximately 1,000 employees from more than 40 countries. Headquartered in Limassol, Cyprus, Prosafe Production is listed on the Oslo Stock Exchange with ticker code PROD. Please refer to www.prosafeproduction.com for more details.
For further information please contact:
Bjørn Henriksen, President and CEO
Phone: +31 6105 32543
E-mail: bjorn.henriksen@prosafeproduction.com
Sven Børre Larsen, Executive VP and CFO
Phone: +65 9657 2590
E-mail: sven.larsen@prosafeproduction.comHUG#1384905
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