INTERIM FINANCIAL REPORT - FIRST HALF OF 2008

Transcription

1 2008 FIRST HALF

2 INTERIM FINANCIAL REPORT - FIRST HALF OF 2008 Main figures, second quarter Operating revenues for the second quarter amounted to USD 23.4 million (USD 16.3 million). Operating profit was USD 10.5 million (USD million), and net profit was USD 7.9 million (USD million). Operating revenues for the quarter were higher than previous year mostly due to income from the Goliat FEED being booked in the second quarter current year as well as FPSO Sevan Piranema being on full day rate compared to standby rate in the equivalent quarter previous year. The reduction in operating cost compared to previous year was mostly due to lower expensed pre-operational cost for FPSO Sevan Hummingbird compared to the corresponding cost incurred previous year on the Company s first unit, FPSO Sevan Piranema. The improvement in financial items compared to previous year was mostly due to unrealized currency gains related to NOK-nominated bonds in the second quarter current year compared to currency losses in the equivalent period previous year. Additionally, in second quarter previous year the call premium and unamortized establishment fee in relation to the refinancing of the NOK 670 million bond was expensed. Main figures, first half of Operating revenues for the first half of the year amounted to USD 45.1 million (USD 26.6 million). Operating profit was USD 36.1 million (USD million), and net profit was USD 41.6 million (USD million). Operating revenues for the first half of the current year were higher than previous year mostly due to income from the Goliat FEED being booked in the second quarter as well as FPSO Sevan Piranema being on full day rate for the full period in the current year compared to standby rate less than half of the equivalent period previous year.the reduction in operating cost compared to previous year was mostly due to expensed pre-operational cost for FPSO Sevan Hummingbird being lower than the corresponding cost on FPSO Sevan Piranema. The net increase in financial loss was mostly due to unrealized foreign exchange losses related to the NOK-nominated bonds being higher first half of the current year as a consequence of the weakening of the US dollar relative to NOK. This effect was somewhat offset by the call premium and unamortized establishment fee related to the refinancing of the NOK 670 million bond that was expensed in second quarter of As of June 30, 2008, total assets amounted to USD 1,901.0 million (USD 1,097.4 million), of which USD 1,358.4 million (USD million) was capitalized as Sevan capital assets. Cash and cash equivalents amounted to USD million (USD million). The current order backlog for the Group was USD 3.9 billion and USD 5.2 billion including options. Business segments The Group is organized in four business segments: Floating Production; Equipment and Systems; Drilling and Corporate. The activities within the Floating Production area are related to the design, engineering, construction, and operation of the Sevan platforms. This includes FPSO Sevan Piranema, which has been operating for Petrobras since October 2007; FPSO Sevan Hummingbird and FPSO Sevan 300 no. 4, both of which have been contracted to Venture Production Plc under multi-year charter contracts; FPSO Sevan Voyageur which has been contracted to Oilexco North Sea Ltd, and FPSO Sevan 300 no. 5 and FPSO Sevan 650 no. 1 which are available for clients. Equipment and Systems consists of the activities of Kanfa AS, Kanfa-Tec AS, Kanfa Aragon AS and Mator AS. The primary business activities of the Kanfa group are related to the provision of services and equipment to the processing plants of the Sevan platforms. In addition, the Kanfa group also serves external clients, most recently noted with the Letter of Intent (LOI) that was awarded to Kanfa Aragon by Samsung in July for the supply of a liquefied natural gas production topside to the world s first Floating Liquefied Natural Gas (FLNG) Production Vessel. The activities within Drilling are mainly related to the design, engineering and construction of the Sevan drilling units. This includes Sevan Driller and Sevan Brasil, both of which have been contracted to Petrobras on 6-year contracts, and the drilling unit which has been 1 Figures in brackets refer to the corresponding period previous year Front page: Sevan Driller at Cosco shipyard, Nantong, China

3 contracted to India s Oil and Natural Gas Corporation LTD (ONGC) on a 3-year contract. The activities within Corporate are related to general administration and marketing activities, including studies made for clients. Business activities Operations, Since FPSO Sevan Piranema commenced oil production on the Piranema field, off the coast of Aracaju in Brazil on October 11, 2007, she has produced more than 1.8 million barrels of oil by the end of the second quarter of Technical uptime for the second quarter of 2008 remained high at 99.8% with revenue utilization at 96.1%. Based on Sevan s unique and patented technology, FPSO Sevan Piranema is operating under an year charter contract with Petrobras S.A. in ultra deep water ranging from 1,000 to 1,600m. In December 2007, the FPSO Sevan Hummingbird was successfully installed on the Chestnut field in the central UK North Sea. The unit will be working under a years contract with Venture Production Plc and is the first cylindrical FPSO to be installed in the North Sea. Offshore commissioning is currently ongoing in its final phase and first oil is expected during third quarter. Contract awards, Drilling In June, Sevan signed a firm order with ONGC for the charter hire of an ultra deepwater drilling unit. The 3-year contract commences at the end of 2010, and has a value of approximately USD 569 million including mobilization. Sevan s scope will additionally include the provision of Remote Operated Vehicles (ROV) which will be compensated separately. In August, the Brazilian oil company Petrobras SA and Sevan signed a firm drilling contract for a new build drilling unit, Sevan Brasil, intended for operations off the coast of Brazil, in water depths down to 2,400m. The 6-year drilling contract is planned for start up by the end of 2011, with a value of approximately USD 975 million, including a bonus arrangement and mobilization fee. Contract award, FLNG In July, Kanfa Aragon signed an LOI with Samsung Heavy Industries in Korea for the development of a liquefied natural gas production topside to the world s first Floating Liquefied Natural Gas (FLNG) Production Vessel. The FLNG topside will be based on Kanfa Aragon s liquefaction technology. Kanfa Aragon s scope of work includes the design and engineering of the liquefaction plant as well as procurement of major equipment items. The contract value is estimated at approximately USD 200 million. The vessel will be owned and operated by FLEX LNG and will be ready for operation late Contract award, FEED for FPSO In May, Sevan signed an LOI with Eni Norge AS, the operator of the Goliat license (PL229), for the Goliat FPSO Design Competition FEED Phase. Under the LOI, Sevan will further mature the Sevan FPSO for the proposed Goliat offshore solution. The FPSO will be based on Sevan s own proprietary technology. The 100% Norwegian Sevan design incorporates the potential for feeding the FPSO with electrical power from shore, reducing the emission of CO2. The Design Competition Phase will be completed in the third quarter with estimated concept selection announcement in the fourth quarter this year. Construction projects The FPSO Sevan Voyageur has been towed out of dry dock and is safely moored quay side at the Keppel Verolme shipyard in Rotterdam. The ballast piping has been tested and accepted by DNV. Commissioning is proceeding according to schedule and budget, and testing of the main equipment and systems is mostly completed. First oil on the Shelley field in the central UK North Sea is expected in the fourth quarter of 2008, under a five year contract with Oilexco North Sea Ltd. The engineering activities for the hull for FPSO Sevan 650 no. 1, and steel cutting and construction activities for FPSO Sevan 300 no. 5 are ongoing at the Hantong shipyard. Both hulls are candidates for use in projects currently discussed with potential clients. The construction of the hull of the deepwater drilling unit Sevan Driller is proceeding at COSCO s shipyard in Nantong, China where hook-up and commissioning activities also will take place. The production and delivery of the drilling package by Aker MH AS are proceeding according to plan and the drill floor was shipped off for installation in China four weeks ahead of schedule. The Sevan Driller will be employed under a 6-year contract with Petrobras who has requested that the Sevan Driller is to be installed offshore Brazil for its first drilling program, instead of US Gulf of Mexico, as initially agreed. The preliminary drilling schedule forecasts exploratory wells to be drilled in the Santos basin presalt cluster in which the Tupi field is located. The drilling unit will be equipped for initial operations in 2,400m water depth instead of 1,500m as initially planned. The agreed start up date for Sevan Driller is mid-2009.

4 Petrobras will cover the extra costs related to the change of location and specifications. Sevan has awarded an LOI to the Cosco Shipyard Group for turnkey contracts comprising the construction, equipment procurement and installation, and commissioning of the drilling units and has secured an additional six options with the yard. Cosco shall also provide yard financing. Aker MH AS has been awarded an LOI for delivery of the drilling packages and the delivery of other long lead equipment items has been secured. The fabrication of the hull of the FPSO Sevan 300 no. 4 is proceeding according to plan at the Hantong shipyard in China. All construction work up to the main deck has been finalized and the accommodation unit and process deck is in progress. Offshore installation is anticipated during 2009 in the UK North Sea. Contract with Venture Production Plc for a second Sevan FPSO extended Under the revised contract, Venture may deploy the Sevan 300 FPSO on any of its fields in the North Sea. Venture shall notify Sevan on which field it will utilize the unit. The contract terms have been adjusted to reflect the current market. Financing activities Mandate for bank financing for FPSO Sevan no. 4 signed In February, the Company, on behalf of one of its subsidiaries, signed a mandate with a leading financial institution to arrange a pre-delivery construction facility of USD 280 million for the FPSO Sevan no. 4 that converts into a long-term USD 280 million amortizing term loan, following delivery of the FPSO. The debt facility is structured as a limited recourse financing. Senior debt project finance facility for the FPSO Sevan Voyageur signed In May, Sevan Marine s affiliate, Sevan Pte Ltd, signed an agreement for a USD 300 million senior debt project finance facility for the FPSO Sevan Voyageur with mandated lead arrangers GE Energy Financial Services and GE Transportation Finance. The debt facility is structured as a limited recourse financing consisting of a pre and post-completion construction financing of up to USD 300 million that converts into a 5-year USD 300 million amortizing term loan following delivery of the FPSO Sevan Voyageur to Oilexco North Sea Ltd. With this facility and the funding raised by Sevan in September 2007 under a NOK 870 million bond issue, the FPSO Sevan Voyageur is fully financed. Share issue In June, the Company completed a directed share issue of 17.8 million shares at a subscription price of NOK 68 per share. Gross proceeds amounted to NOK 1,210 million. The proceeds of the transaction will be applied towards projects within floating oil production and floating LNG production and for general corporate purposes. Risk The Company was founded in 2001, and has since its inception focused on the engineering, construction and the subsequent operation of the Sevan units, based on its proprietary technology. As of the date of this report, only one of the Sevan units has commenced oil production. The Group has thus limited experience as an operating company and has generated limited revenues from its units. However, the technology has now been tested under real operating conditions in Brazil and UK North Sea, with recorded motion characteristics in line with, or better than, those forecasted during model testing and theoretical analyses. The Group s activities expose it to a variety of financial risks, including market risks, credit risks and liquidity risks. The Group s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the financial performance. The Group will therefore continue to manage its currency and interest exposures through certain derivative financial instruments in accordance with market practice, and aims at maintaining flexibility in funding by keeping committed credit lines available. The Group is in a dynamic growth period with expansion in activities, new-building programs and financial exposures, all of which constitute challenges which require continuous monitoring and ability to control and adapt to inherent risks. For further description of the Group s risk exposures and management of such, reference is made to the Annual Report Outlook Sevan sees a strong market outlook for the business areas in which the Company operates. The Company is in the final stages of negotiations with oil companies for the provision of one or more Sevan FPSOs. Sevan is also seeing several opportunities on the drilling side, as well as for the other business areas. Arendal, August 19, 2008 The Board of Directors Sevan Marine ASA

5 INTERIM FINANCIAL STATEMENTS CONDENSED CONSOLIDATED INCOME STATEMENT Unaudited figures in USD million Q2 08 Q Operating revenues 23,4 16,3 45,1 26,6 82,2 Operating expenses -29,0-40,6-66,5-71,4-170,2 Foreign exchange gain/(loss) related to operation 0,1-1,2-4,9-1,7-5,4 EBITDA -5,5-25,5-38,0-46,5-93,4 Depreciation, amortization and impairment -5,0-4,0-9,8-5,0-13,2 Operating profit -10,5-29,5-36,1-51,5-106,6 Income from associated companies 0,6 0,2 0,9 0,3 1,0 Financial income/(cost) -3,9-14,7-10,0-17,3-26,6 Foreign exchange gain/(loss) related to financing 3,3-9,2-16,4-5,4-18,4 Net financial items 0,0-23,7-25,5-22,4-44,0 Profit before tax -10,5-53,2-61,6-73,9-150,5 Income tax expense 2,6 15,3 20,0 19,4 35,6 Net profit -7,9-37,9-41,6-54,5-115,0 CONDENSED CONSOLIDATED BALANCE SHEET Unaudited figures in USD million Sevan Capital Assets 1 358,4 756, ,2 Other fixed assets 44,1 43,1 36,1 Intangible assets 16,3 13,4 15,0 Investments in associates 1,9 1,3 1,8 Deferred income tax assets 79,1 32,5 55,3 Other non-current assets 86,9 9,2 67,7 Total non-current assets 1 586,7 855, ,2 Inventories 6,5 7,2 6,3 Trade and other receivables 39,7 18,9 29,7 Cash and cash equivalents 268,1 215,9 222,8 Total current assets 314,3 242,0 258,8 Total assets 1 901, , ,0 Share capital 6,2 4,9 5,5 Other equity 752,4 422,0 559,7 Total shareholders' equity 758,6 426,9 565,2 Minority Interest 50,2 7,4 6,5 Total equity 808,8 434,3 571,7 Borrowings 959,4 567,4 789,6 Retirement benefit obligations 0,7 0,6 0,7 Other long-term liabilities/provisions 7,5 0,5 8,6 Total long-term debt 967,6 568,4 799,0 Current liabilities 124,6 94,7 143,2 Total current liabilities 124,6 94,7 143,2 Total liabilities 1 092,2 663,1 942,2 Total equity and liabilities 1 901, , ,0

6 CONDENSED CONSOLIDATED CASH FLOW STATEMENT Condensed consolidated cash flow statement Unaudited figures in USD million Cash flows from operations -98,9-88,7 Cash flows from investments -330,9-288,6 Cash flows from financing 475,1 284,0 Net cash flow 45,3-93,3 Cash balance at beginning of period 222,8 309,2 Cash balance at end of period 268,1 215,9 Statement of changes in equity Other Share Share Other unrestricted Minority Total capital premium reserves equity interest equity Equity as of December 31, ,5 332,0 2,8 225,0 6,5 571,7 Proceeds from shares issued 0,7 235,8 45,6 282,1 Transfer from share premium to other equity 0,0 Minority interest repurchased 0,0 Minority interest through acquisition 0,0 Share issue cost -8,7-8,7 Tax effect of share issue costs 2,4 2,4 Value of options 1,9 1,9 Net profit for the period -39,9-1,7-41,6 Effect of CF hedge 0,0 Currency translation difference 1,3 1,3 Equity as of June 30, ,2 559,0 4,0 189,4 50,2 808,8 Statement of changes in equity Other Share Share Other unrestricted Minority Total capital premium reserves equity interest equity Equity as of December 31, ,3 10,2-0,2 343,8 7,8 365,9 Proceeds from shares issued 0,5 122,6 123,1 Transfer from share premium to other equity 0,0 Minority interest repurchased 0,0 Minority interest through acquisition 0,4 0,4 Share issue cost -4,5-4,5 Tax effect of share issue costs 1,3 1,3 Value of options 1,1 1,1 Net profit for the period -53,7-0,8-54,5 Effect of CF hedge 0,0 Currency translation difference 1,5 1,5 Equity as of June 30, ,9 128,2 1,2 292,5 7,4 434,3

7 KEY FIGURES Unaudited figures Note Q2 08 Q Earnings per share (USD) 1-0,04-0,24-0,23-0,35-0,72 Earnings per share fully diluted (USD) 2-0,04-0,23-0,22-0,34-0,69 Cash flow per share (USD) 3-0,22-0,25-0,55-0,58-0,97 Cash flow per share fully diluted (USD) 4-0,22-0,24-0,53-0,55-0,94 Operating margin 5-45 % -181 % -80 % -194 % -130 % Equity ratio 6 40 % 39 % 40 % 39 % 37 % Return on equity 7-5 % -34 % -12 % -27 % -25 % Return on capital employed 8-6 % -19 % -13 % -16 % -10 % No. of outstanding shares (million) 195,9 161,0 195,9 161,0 177,4 No. of shares fully diluted (million) 202,8 169,0 202,8 169,0 184,9 Average no. of outstanding shares (million) 179,8 160,9 178,7 154,1 160,7 Average no. of shares fully diluted (million) 187,1 168,2 186,0 161,0 167,0 Share price (NOK) 63,50 62,00 63,50 62,00 82,00 Market capitalization (NOK, million) Number of employees Notes 1 Net profit / average no. of outstanding shares 2 Net profit / average no. of shares fully diluted 3 Cash flow from operations / avg. no. of outstanding shares 4 Cash flow from operations / avg. no. of shares fully diluted 5 (Operating profit / operating revenues) x (Total shareholders' equity / total assets) x (Net profit / avg. equity) x 100, annualized 8 (Operating profit + interest income) / (avg. total assets - avg. interest free debt), annualized 9 Latest quoted share price of the reporting period x no. of outstanding shares NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 GENERAL ACCOUNTING PRINCIPLES SEVAN MARINE ASA (the Company ) and its subsidiaries (together with the Company, the Group ) are engaged in development, construction, ownership, and chartering of floating production units and drilling units, which are based on the proprietary technology of the Company. The Group is also developing other application types for its cylindrical Sevan hull, including floating LNG production and power plants with CO2 capture. Sevan Marine ASA is a public limited company, incorporated and domiciled in Norway. The condensed consolidated interim financial statements consist of the Group and the Group s interest in associated companies. The Group prepares its financial statements in accordance with International Financial Reporting Standards (IFRS) and these financial statements have been prepared in accordance with the International Accounting Standard for Interim Financial Reporting (IAS 34). As the interim financial statements do not include the full information and disclosures as required in the annual financial statements, it should be read in connection with the Group s Annual Report The accounting policies adopted in the preparation of the interim financial statements are consistent with those followed in the preparation of the Group s Annual Financial Statements for the year ended December 31, 2007, unless explicitly stated otherwise.

8 NOTE 2 PROPERTY, PLANT AND EQUIPMENT The Group s main non-current assets are classified as Sevan Capital Assets in the balance sheet. The table below summarizes the changes to these assets for 2007 and for the interim period of January 1, to June 30, Figures in USD million Construction in Progress (CIP) FPSO Sevan Capital Assets Year ended December 31, 2007: Book value January 1, 472,9 0,0 472,9 Assets reclassified from "CIP" to "FPSO" -265,3 265,3 0,0 Additions 595,6 21,4 617,0 Depreciation charge 0,0-10,7-10,7 Book value December 31, 803,2 276, ,2 At December 31, 2007: Cost 803,2 286, ,9 Accumulated depreciation 0,0-10,7-10,7 Book value December 31, 803,2 276, ,2 Construction in Progress (CIP) FPSO Sevan Capital Assets Half year ended June 30, 2008: Book value January 1, 803,2 276, ,2 Assets reclassified from "CIP" to "FPSO" 0,0 0,0 0,0 Additions 276,3 10,2 286,4 Depreciation charge 0,0-7,2-7,2 Book value June 30, 1 079,4 279, ,4 At June 30, 2008: Cost 1 079,4 296, ,3 Accumulated depreciation 0,0-17,9-17,9 Book value June 30, 1 079,4 279, ,4 NOTE 3 RELATED PARTY TRANSACTIONS The Group does not have any transactions and inter-company balances regarded as material for the interim condensed consolidated financial statements for the reporting period. Further reference to related party transactions is made in note 28 in the Annual Report 2007.

9 NOTE 4 SEGMENT INFORMATION Floating Equipment Corporate Quarterly data Production & Systems cost Drilling Eliminations Total Q2 08 Q2 07 Q2 08 Q2 07 Q2 08 Q2 07 Q2 08 Q2 07 Q1 08 Q2 07 Q2 08 Q2 07 External revenues 9,5 4,4 7,6 11,9 6,4 0,0 0,0 0,0 0,0 0,0 23,4 16,3 Internal revenues 0,1 0,0 1,5 12,6 7,7 0,0 0,0 0,0-9,3-12,6 0,0 0,0 Total revenue 9,6 4,4 9,1 24,5 14,1 0,0 0,0 0,0-9,3-12,6 23,4 16,3 Operating expenses -11,9-22,8-2,7-22,9-19,2-4,8-3,7-0,9 8,5 10,8-29,0-40,6 Foreign exch. gain/(loss), -0,8-0,8 0,1 0,0 0,9-0,3-0,1-0,1 0,0 0,0 0,1-1,2 operation EBITDA -3,1-19,3 6,5 1,5-4,3-5,0-3,9-1,0-0,8-1,7-5,5-25,5 Depreciation, amortization -4,0-3,4-0,2 0,1-0,6-0,4-0,2-0,1 0,0 0,0-5,0-4,0 and impairment Operating profit -7,2-22,7 6,3 1,6-4,9-5,4-4,0-1,1-0,8-1,7-10,5-29,5 Income from associates 0,0 0,0 0,6 0,2 0,0 0,0 0,0 0,0 0,0 0,0 0,6 0,2 Financial income/(cost) -6,2-8,2 0,0-0,1-8,2-7,0 0,0 0,6 10,5-0,1-3,9-14,7 Foreign exch. gain/(loss), financing 0,3-5,0 0,0 0,0 3,0-4,2 0,0-0,1 0,0 0,0 3,3-9,2 Net financial items -5,9-13,2 0,5 0,1-5,2-11,2 0,1 0,5 10,5-0,1 0,0-23,7 Profit before tax -13,1-35,9 6,7 1,7-10,1-16,6-4,0-0,6 9,7-1,8-10,5-53,2 Income tax expense * 5,2 14,2-1,4-0,4-4,6 1,5 0,0 0,0 3,4 0,0 2,6 15,3 Net profit -7,9-21,7 5,3 1,3-14,6-15,2-4,0-0,6 13,2-1,8-7,9-37,9 Segment assets 1 204,9 707,0 47,8 36, , ,4 422,3 282, , , , ,1 Inv.m. in assoc. (equity method) 0,0 0,0 1,9 1,3 0,0 0,0 0,0 0,0 0,0 0,0 1,9 1,3 Total assets** 1 204,9 707,0 49,7 37, , ,4 422,3 282, , , , ,4 Segment liabilities 619,3 626,8 18,3 21,9 815,3 609,6 181,4 132,3-542,1-727, ,2 663,1 Total liabilities** 619,3 626,8 18,3 21,9 815,3 609,6 181,4 132,3-542,1-727, ,2 663,1 Capital expenditure 89,0 109,4 1,2 2,1 0,5 0,9 46,9 48,4 10,3-1,8 147,9 159,0 Non-cash exp. other than depr. 0,1 0,0 0,0 0,1 0,9 0,4 0,0 0,0 0,0 0,0 1,0 0,5 *The effective tax rate differs from the nominal tax rate mainly because the gains and losses related to translation to USD functionality are non-taxable items. **For assets and liabilities are intra-segment balances eliminated within the segment, whilst inter-segment balances are eliminated in the elimination section.

10 NOTE 4 SEGMENT INFORMATION Floating Equipment Corporate Quarterly data Production & Systems cost Drilling Eliminations Total External revenues 19,0 5,3 19,7 21,0 6,4 0,3 0,0 0,0 0,0 0,0 45,1 26,6 Internal revenues 0,1 0,0 12,3 24,6 16,0-0,1 0,0 0,0-28,4-24,5 0,0 0,0 Total revenue 19,1 5,3 32,0 45,6 22,4 0,2 0,0 0,0-28,4-24,5 45,1 26,6 Operating expenses -33,1-38,4-22,1-43,1-30,6-9,3-6,9-1,7 26,2 21,0-66,5-71,4 Foreign exch. gain/(loss), operation -3,0-0,9 0,4-0,1-1,7-0,6-0,6-0,2 0,0 0,0-4,9-1,7 EBITDA -17,0-34,0 10,3 2,4-9,9-9,7-7,5-1,9-2,2-3,5-26,3-46,5 Depreciation, amortization and impairment -8,0-4,0-0,3 0,0-1,2-0,7-0,3-0,2 0,0 0,0-9,8-5,0 Operating profit -25,0-38,0 10,0 2,4-11,1-10,4-7,8-2,1-2,2-3,5-36,1-51,5 Income from associates 0,0 0,0 0,9 0,3 0,0 0,0 0,0 0,0 0,0 0,0 0,9 0,3 Financial income/(cost) -14,1-8,9 0,5-0,1-37,9-8,1 0,0 0,7 41,5-1,0-10,0-17,3 Foreign exch. gain/(loss), financing 0,6 3,9-0,7 0,1-16,6-10,1 0,3 0,7 0,0 0,0-16,4-5,4 Net financial items -13,5-5,0 0,7 0,3-54,5-18,2 0,3 1,4 41,5-1,0-25,5-22,4 Profit before tax -38,5-43,0 10,7 2,7-65,6-28,6-7,5-0,7 39,3-4,5-61,6-73,9 Income tax expense * 12,1 15,4-3,0-0,6 8,3 4,6 0,0 0,0 2,6 0,0 20,0 19,4 Net profit -26,4-27,6 7,7 2,1-57,3-24,0-7,5-0,7 41,9-4,5-41,6-54,5 Segment assets 1 204,9 707,0 47,8 36, , ,4 422,3 282, , , , ,1 Inv.m. in assoc. (equity method) 0,0 0,0 1,9 1,3 0,0 0,0 0,0 0,0 0,0 0,0 1,9 1,3 Total assets** 1 204,9 707,0 49,7 37, , ,4 422,3 282, , , , ,4 Segment liabilities 619,3 626,8 18,3 21,9 815,3 609,6 181,4 132,3-542,1-727, ,2 663,1 Total liabilities** 619,3 626,8 18,3 21,9 815,3 609,6 181,4 132,3-542,1-727, ,2 663,1 Capital expenditure 138,4 197,3 1,6 2,1 2,7 1,1 116,1 97,0 40,1-4,0 298,9 293,5 Non-cash exp. other than depr. 0,1 0,0 0,0 0,3 1,7 0,8 0,0 0,0 0,0 0,0 1,9 1,1 *The effective tax rate differs from the nominal tax rate mainly because the gains and losses related to translation to USD functionality are non-taxable items. **For assets and liabilities are intra-segment balances eliminated within the segment, whilst inter-segment balances are eliminated in the elimination section.

11 NOTE 5 SHAREHOLDER STRUCTURE The 10 largest shareholders as at August 12, 2008 Shareholder No. of shares % share Goldman Sachs Int.-Security Client Segr ,73 % Morgan Stanley & Co. Cleint Equity ,87 % Goldman Sachs&Co-Security Client Segr ,66 % Bear Stearns Security A/C ,39 % Bank of New York,BR BNY GCM Client account ,61 % JP Morgan Securities Equities ,65 % Smedal, Arne ,89 % Nordea Bank Norge AS Egenhandelskonto der ,86 % Supernova AS ,48 % Hallingen AS ,44 % Total, 10 largest ,57 % No. of outstanding shares Foreign ownership 73.54% RESPONSIBILITY STATEMENT We confirm, to the best of our knowledge, that the interim consolidated financial statements for the period January 1 to June 30, 2008, has been prepared in accordance with IAS 34 Interim Financial Reporting, and gives a true and fair view of the Group s assets, liabilities, financial position and profit or loss as a whole. We also confirm, to the best of our knowledge, that the interim management report includes a fair review of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements, a description of the principal risks and uncertainties for the remaining six months of the financial year, and major related parties transactions. Arendal, August 19, 2008 The Board of Directors Sevan Marine ASA Arne Smedal Vibeke Strømme Kåre Syvertsen Chairman Vice Chairman Board member Hilde Drønen Stephan M. Zeppelin Kjetil Soma Board member Board member Employee Board member Kristin Urdahl Employee Board member Jan Erik Tveteraas

12 return address: Sevan Marine ASA Kittelsbuktveien Arendal Norway Phone: Fax: