All time high profits and order intake of NOK 1,5 billion in 3rd quarter 2000

Main Figures
In the 3rd quarter ProSafe made an operating profit of MNOK 250 (MNOK 58). The increase in operating profit compared to the same period last year is due to all time high profits within Offshore Support Services. The operating profit within this business area increased from MNOK 39 in the 3rd quarter last year to MNOK 236 in the 3rd quarter this year. The operating profit within Offshore Drilling & Related Services showed a reduction as a result of a temporary decline in activity levels, while the operating profit within Other Business increased as a result of some higher activity levels and also cost reductions.

In the 3rd quarter profit after taxes was MNOK 116 (MNOK -23), whilst the cash flow amounted to MNOK 253 (MNOK 79). The USD currency ratio strengthened compared to NOK during the 3rd quarter. A strong USD is of benefit to ProSafe as a major part of the charter rates are denominated in USD and the rigs are valued in USD. Thus the operating profit and also the value of the assets are strengthened by a strong USD. However, a strong USD has led to an unrealised currency loss of MNOK 76 relating to the long term USD loan being charged to the accounts in the 3rd quarter.

Adjusted for the unrealised currency loss, profit per share was NOK 7,29 in the 3rd quarter. Cash flow per share was NOK 9,61 (NOK 3,06).

Year to date operating profit as at 30 September 2000 was MNOK 458 (MNOK 146), profit after taxes MNOK 229 (MNOK 5) and cash flow per share NOK 15,99 (NOK 8,96). Adjusted for an accumulated currency loss of MNOK 151, profit per share was NOK 14,47.

Business Areas
In the 3rd quarter Offshore Support Services made an operating profit of MNOK 236 (MNOK 39). Included in the operating profit is a gain on sale of the Discoverer 1 drillship to Seatankers Management of MNOK 20. The fleet utilisation was 100%, an increase of 50%-points compared to the same period last year. The high fleet utilisation and the expansion of the rig fleet gave all time high profits within this area.

In the 3rd quarter Offshore Drilling & Related Services made an operating profit of MNOK 17 mill (MNOK 23), an increase of MNOK 7 compared to the same period last year. The increase is due to the start-up of the lightweight rig Rubicon on Snorre TLP and also the Oseberg South operation for Norsk Hydro. The decrease in operating profit compared to the same period last year is due to the fact that Rubicon was in operation during the whole period last year, and also the shortfall of the Valhall operation.

In the 3rd quarter Other Business made an operating profit of MNOK 4 (MNOK 1). During the period, the activity level has been moderate. The order backlog as at the end of the period was MNOK 172.

Prospects
While ProSafe is always working towards organic growth, the company will also maintain a continuous evaluation of new markets, assets and partners. The acquisition of MSV Regalia and the conclusion of the participation agreements with Halliburton and Schlumberger regarding subsea construction and well intervention is as such important steps towards bringing ProSafe into new international growth markets.

The board of ProSafe has strong focus on the composition of the company. As a result, the sale of the Discoverer 1 drillship took place during the 3rd quarter. Further, ProSafe has decided to rename the business area Technology & Engineering to Other Business to clearly illustrate that core business is within Offshore Support Services and Offshore Drilling & Related Services.

ProSafe is listed on the Oslo Stock Exchange with ticker code PRS.


Oslo 2 November 2000

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