Main figures
(Figures in brackets refer to the same period last year)
Operating profit for the third quarter equalled NOK 208m (NOK 143m). Adjusted for goodwill amortisation of NOK 17m, the operating profit equalled NOK 225m.
Profit after taxes for the third quarter came to NOK 183m (NOK 83m), while fully diluted earnings per share equalled NOK 5.36 (2.44). Adjusted for goodwill amortisation, fully diluted earnings per share equalled NOK 5.86. Cash flow from operating activities amounted to NOK 167m (NOK 348m) or NOK 4.89 (10.23) per share.
Operating profit for the year to September was NOK 566m (NOK 384m). Adjusted for goodwill amortisation of NOK 51m, the operating profit equalled NOK 617m.
Profit after taxes for the year to September came to NOK 436m (NOK 277m), and fully diluted earnings per share equalled NOK 12.78 (8.79). Adjusted for goodwill amortisation, fully diluted earnings per share were NOK 14.27. Cash flow from operating activities equalled NOK 646m (NOK 603m) or NOK 18.93 (19.14) per share.
Operations
Offshore Support Services generated an operating profit of NOK 164m (NOK 120m) for the third quarter. Fleet utilisation was 97% (84%). Besides increased fleet utilisation, the improved result is attributable to the contract for the Safe Hibernia and lower depreciation due to revised estimate for the useful life of the rigs.
Five of the rigs – the Safe Britannia, Safe Lancia, Jasminia, Safe Regency and Safe Hibernia – have throughout the quarter been on contracts on Cantarell in the Gulf of Mexico.
In early July, the Safe Caledonia commenced on a contract with Statoil on Sleipner, where she will be engaged until mid November.
In the third quarter, MSV Regalia has carried out subsea construction work for BP west of Shetland, before she was taken to yard in late September to undergo an upgrade to subsea well intervention.
The Safe Scandinavia has been on contracts with ChevronTexaco on Alba and with Statoil on Statfjord in the third quarter.
In the third quarter, Floating Production generated an operating profit of NOK 44m (NOK 27m) before goodwill amortisation of NOK 17m. The improved result is attributable to the contract for the FPSO Espoir Ivoirien in Côte d’Ivoire, which commenced in February this year.
In early September, the FPSO Petroleo Nautipa commenced on the contract with Vaalco offshore Gabon. The contract has a fixed term of two years, and extension options for another three years.
The conversion of the tanker Grey Warrior to an FPSO for the Abo field offshore Nigeria is currently ongoing at the yard in Singapore. The project is progressing as planned, and is to be completed by the end of the first quarter 2003, when the ship will start on an eight-year contract with Agip.
Drilling Services generated an operating profit of NOK 23m (NOK 20m) in the third quarter. The improved result is attributable to increased activity.
Statoil has exercised a one year extension option for platform drilling on Gullfaks. The option period runs from 1 April 2003 to 1 April 2004, and has an estimated value of about NOK 200m. Another one year option remains.
Outlook
The fleet utilisation within Offshore Support Services will decrease the next two quarters when the MSV Regalia will stay at yard for upgrade to subsea well intervention. The vessel will be ready for operation at the end of the first quarter next year. Furthermore, the Safe Caledonia, which goes off contract in November, will prepare and start mobilisation to Australia in the course of the fourth quarter and start the contract in April next year. In addition, the Safe Scandinavia, which goes off contract at the end of October, will be taken to yard in Sweden for installation of additional accommodation modules. For 2003, MSV Regalia has already a contract for intervention of four to twelve subsea wells and an accommodation contract on Fram in the second and third quarter. The Safe Scandinavia has, for the time being, secured contracts on Gullfaks and Grane in the second and third quarter 2003. As regards Mexico, indications give us reason to be optimistic also for the periods ahead.
Main focus within Floating Production is completion of the FPSO for the Abo field and operation of existing units. The company’s objective of winning one project per year remains firm. As previously announced, the FPSO Ruby Princess was sold to the client in late October. The transaction will not have any impact on the profit and loss account.
We expect the activity within Drilling Services to remain high in the next periods, even if the first quarter, as usual, will be influenced by seasonal variations. Focus remains on safe and efficient operations and, in a longer term, on start-up of the Kvitebjørn contract and further engagement for the drilling and intervention rig Rubicon.
Prosafe is listed on the Oslo Stock Exchange with ticker code PRS.
Oslo, 31 October 2002
