(Figures in brackets refer to the corresponding period of 2006)
Net financial expenses for 2007 increased to USD 64.5 million (USD 7 million) due to higher interest costs resulting from new interest-bearing debt obtained in connection with the ongoing growth in Floating Production. In addition, the accounts for 2007 have been charged with an unrealised currency loss of USD 10.2 million relating to the NOK bond loan. Taxes for 2007 amounted to USD 14.0 million (USD 14.9 million). Net profit for 2007 was USD 143.7 million (USD 128.1 million) and diluted earnings per share were USD 0.63 (USD 0.64).
Operating profit for the fourth quarter came to USD 70 million (USD 44.7 million). Operating profit in Offshore Support Services increased by USD 14.3 million to USD 50.7 million, and in Floating Production by USD 13.7 million to USD 23.3 million. Corporate costs increased by USD 2.7 million due to costs relating to the company's share option plan and legal fees in connection with the possible split of the company.
Net financial expenses for the fourth quarter were USD 30.8 million (USD 5.1 million), reflecting higher interest costs, reduced market value of interest rate swaps and unrealised currency losses on loans denominated in NOK. Net profit for the fourth quarter amounted to USD 35.4 million (USD 32.4 million), and earnings per share equalled USD 0.15 (USD 0.14).
Total assets at 31 December amounted to USD
2 624 million (USD 2 145.9 million), while the book equity ratio declined to 39.6 per cent (50.8 per cent) due to the dividend payments during 2007 totalling NOK 5 per share.
Offshore Support Services
Operating revenues in Offshore Support Services amounted to USD 376.1 million for 2007 (USD 272.6 million), while operating profit came to USD 175.8 million (USD 117.3 million). The utilisation ratio for the rig fleet in 2007 was 88 per cent (92 per cent). The improvement reflects higher day rates and a full year of operation for the rigs acquired through the acquisition of Consafe Offshore AB in mid 2006.
Operating profit in the fourth quarter came to USD 50.7 million (USD 36.4 million). This improvement reflects significantly higher dayrates. Utilisation of the rig fleet was 86 per cent (92 per cent).
In the fourth quarter, Safe Caledonia continued on the two-year contract with Total on Elgin/Franklin which began in May this year. After completion of the contract on Snorre, Safe Scandinavia commenced on the contract with ConocoPhillips in the UK sector. In November, Safe Bristolia completed the contract off Sakhalin, whilst MSV Regalia completed the work off Angola. All six rigs working in the Gulf of Mexico have been in regular operation throughout the fourth quarter.
Floating Production
Floating Production generated revenues of USD 150.4 million in 2007 (USD 92.6 million), and an operating profit of USD 59.2 million (USD 37.8 million). This improvement reflects the commencement of the contracts for FPSO Polvo and FPSO Umuroa, which started to generate revenue in the third quarter.
Operating profit for the fourth quarter amounted to USD 23.3 million (USD 9.6 million). The main contributing factor to this improvement was the two new FPSO operations.
Split of the company
The board of directors resolved on 6 December to initiate a process intending to split the company into two listed companies, one focused offshore support rig company and one focused floating production company. The board of directors are still evaluating the details of the split model. The intention is to distribute the shares in Floating Production to the shareholders as a dividend. The split process, including listing of the new entity, is expected to be completed in the second quarter of 2008.
Dividend for 2007
In previous years, Prosafe has communicated the proposed dividend in the fourth quarter report. This year, the dividend proposal will be made in conjunction with the final determination of the split model.
Outlook and accounts: see attached report.
Larnaca, 13 February 2008
The board of directors of Prosafe SE
For more information, please contact:
Arne Austreid
President and CEO, Prosafe SE
Phone no: +47 900 77 334
Karl Ronny Klungtvedt
Exec. Vice President and CFO, Prosafe SE
Phone no: +47 908 81 657
