Operating profit NOK 515m in 2001

Fourth quarter in brief
* Prosafe is awarded a contract with Agip for the delivery of an FPSO to the Abo field offshore Nigeria. The contract has a duration of eight years plus two one-year extension options. The value of the firm contract is circa USD 220m.
* The contract for FPSO Al Zaafarana is extended by four years from 1 November 2001. The contract value is USD 13.9m.
* Statoil exercises an option to extend the drilling contract on Gullfaks by one year from 1 April 2002. The contract value is circa NOK 200m and an option for further two years remains.
* Prosafe wins a contract with Ocean Oil for the use of Safe Caledonia for 176 days until early May. The contract value is USD 6.4m.
* Statoil exercises an option to extend the drilling contract on Heidrun by one year from 1 June 2002. The contract value is circa NOK 100m and an option for further two years remains.
* The contract for FSO Endeavor is extended by one year from August 2002. The contract value is circa USD 5.5m.
* In January 2002 Prosafe sells the remaining operations within the business area Other Business.

Main figures
(Figures in brackets refer to the same period last year)

In 2001 Prosafe achieved an operating profit of NOK 515m (NOK 594m). Operating revenues amounted to NOK 2,418m (NOK 1,946m). Adjusted for goodwill amortisation of NOK 51m, the operating profit equalled NOK 566m.

In 2001 profit after taxes equalled NOK 350m (NOK 386m). Earnings per share equalled NOK 10.89 (NOK 14.60). Adjusted for goodwill amortisation, one-off charges relating to discontinuation of the business in Azerbaijan of NOK 7m and an unrealised currency loss of NOK 40m relating to the company's USD debt, profit after taxes equalled NOK 448m or NOK 13.94 per share. A strong USD is however beneficial to Prosafe as a large proportion of the revenues are generated in USD and also because the currency loss is fully compensated by a non-recognised increased NOK value of the company's vessels which are valued in USD.

Operating profit for the fourth quarter amounted to NOK 134m (NOK 131m). Adjusted for goodwill amortisation of NOK 17m, operating profit equalled NOK 151m. Profit after taxes equalled NOK 64m (NOK 157m) in the fourth quarter. Adjusted for goodwill amortisation, one-off charges and an unrealised currency loss of NOK 41m, profit after taxes equalled NOK 129m or NOK 3.79 per share.

Prospects
Prosafe entered 2002 with good contract coverage within Offshore Support Services. In 2002 the most important challenges within this business area are to secure further engagement for Safe Britannia and Safe Lancia, and to carry out the upgrade of MSV Regalia for subsea well intervention. In this respect the company maintains a generally positive view on continued demand for the company's rigs in Mexico.

Main focus within Floating Production will be to carry out the FPSO-conversion project Abo, to secure further engagement for Ruby Princess, and to develop its organisational resources. The activity level within the FPSO-segment remains high. Following the start-up for FPSO Espoir Ivoirien, results from this business area are expected to increase significantly in 2002 compared with 2001.
Within Drilling Services focus will be efficient operation of the existing contracts and extensions of the contracts on Snorre and Oseberg for Norsk Hydro, including pursuing further extension for the lightweight rig Rubicon from August this year. Simultaneously, the company is targeting new opportunities in connection with the drilling contract on Ekofisk for Phillips which is now out for tender.

In light of the company's market positions and the general positive outlook for the oil industry, Prosafe maintains a positive view on the company's activity level in 2002.


Oslo 7 February 2002