Rubicon Offshore Holdings Limited Group Management Financial Statements For the six months ended 30 June 2008

Transcription

1 i2 RUBICON OFFSHORE INTERNATIONAL Rubicon Offshore Holdings Limited Group Management Financial Statements Background Rubicon is an offshore oilfield service company providing life-of-field development solutions by deploying its fleet of two floating, production, storage and off-loading vessels ( FPSOs ) and a multi-service vessel ( MSV ). Management review Rubicon is pleased to report that it has made considerable further progress in the transitioning of its two FPSOs into operations and that its MSV, the Rubicon Maverick continues to perform well. The Rubicon Intrepid arrived at the Galoc Field, offshore the Philippines, on 11 May 2008 for hook-up to the subsea equipment. Certification from the classification society, DNV, that the vessel was ready for the introduction of hydrocarbons was duly received on 6 June Thereafter, following successful pre-commissioning activities, progress to first oil was impacted by Typhoon Fengshen, necessitating a disconnection of the vessel on 21 June This procedure, which had. to be conducted in extremely adverse weather conditions,, resulted in damage being sustained to the mooring system, as well as an upper section of the riser. Rubicon declared force majeure under the FPSO charter contract and has since been working, together with GPC, the operator of the Galoc Field, to repair the damage to the vessel and subsea equipment. The required repair work is expected to be completed within the next few weeks, at which point, the force majeure situation will have been rectified and the vessel will once more be in a position to produce first oil. Following her departure from Singapore in May 2008, the Rubicon Vantage sailed to Thailand for completion of outstanding work on the vessel, which was undertaken in the port of Sattahip. The vessel then departed for the Bualuang Field, offshore Thailand. Following arrival at the field on 21 July 2008, the vessel underwent final pre-commissioning and testing, progressing to hook-up to the mooring and riser equipment and class certification by DNV. First oil was achieved on 27 August Rubicon Vantage on location at the Bualuang Field, offshore Thailand

2 R RUBICON OFFSHORE INTERNATIONAL As previously reported, the Rubicon Maverick commenced a short-term contract with a division of China National Overseas Oil Corporation ( CNOOC ) in mid-june Following successful completion of its work programme, the vessel was subsequently contracted, without any break, to perform additional work for an affiliate of CNOOC. This new contract is for up to 60 days (30 days firm period) and is ongoing. Rubicon is pleased with the contracts that have been secured to date and has been greatly encouraged by the interest shown by potential future customers for the Rubicon Maverick. The transition of Rubicon s FPSOs moving into production has occurred later than originally planned, due to a combination of factors, some of which have been outside Rubicon s control. The delay in receipt of revenues has had an impact on cashflows, eased somewhat by the successful deployment of the Rubicon Maverick. Rubicon s shareholders have continued to be highly supportive as the Company has transitioned into operations and have provided additional capital, including the capitalization of US$15.0 million of shareholder loans in the period ended 30 June We have continued to build up Rubicon s management team and made a number of staff additions. Our current headcount of permanent, staff in Singapore has now reached 50 professionals. Our most important recent hire has been the appointment of Joe Lesiuk as Rubicon s Chief Operating Officer. He brings to Rubicon many years experience in the offshore oil industry and was, most recently, head of Transocean s Asia-Pacific operations. Board of Directors, 29 August 2008 Note: This document does not constitute or form part of any offer for sale or subscription of or solicitation of any offer to buy or subscribe for any securities nor shall it, or any part of it, form the basis of or be relied on in connection with any contract or commitment whatsoever. We do not accept any responsibility for, nor make any representation or warranty, express or implied, as to the truth, accuracy or completeness of, the information in this document. In particular, no representation or warranty (whether express or implied) is given as to the achievement or reasonableness of any future events, projections, management estimates, prospects, or other forward-looking statements contained in this document, which are based on numerous assumptions and are subject to known and unknown risks, uncertainties and other factors which may cause actual events, projections, management estimates, and prospects to be materially different. We expressly disclaim any and all liability whatsoever with respect to errors, omissions or misstatements contained herein and any and all liability whatsoever arising directly or indirectly from the use of this document (or any part of it or any information contained in it).

3 CONSOLIDATED BALANCE SHEET (UNAUDITED) As at 30 June 2008 ASSETS Non-current assets Property, plant and equipment Current assets Cash and cash equivalents Trade and other receivables Derivative financial instruments inventories Other current assets Total assets Note 2 223, , , , ,579 25, ,640 LIABILITIES Current liabilities Trade and other payables Borrowings Deferred revenue Non-current liabilities Borrowings Deferred revenue Total liabilities Net assets 8 35, , ,406 43, , , , ,207 16,433 EQUITY Share capital Accumulated losses Total equity 11 51,069 (34,636) 16,433 3

4 CONSOLIDATED INCOME STATEMENT (UNAUDITED) Note Revenue 12 6,112 Cost of services 13 (3,124) Gross profit 2,988 Other income Expenses - Administrative 13 (6,168) - Finance 14 (6,543) Total expenses (12,711) Loss before taxation (9,478) Income tax 15 - Net loss (9,478) 4

5 CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED) Note Cash flows from operating activities Loss before income tax (9,478) Adjustments for: Depreciation of property, plant and equipment 1,953 Finance expense (including interest) 6,543 interest income (245) Operating cash flow before working capital changes (1,227) Changes in operating assets and liabilities: Inventories (111) Trade and other receivables (5,584) Other current assets (343) Deferred revenue 4,547 Trade and other payables 26,781 Cash generated from operations 24,063 interest received 245 Net cash provided by operating activities 24,308 Cash flows from investing activities Purchase of property, plant and equipment (56,759) Net cash used in investing activities (56,759) Cash flows from financing activities Capitalization of advances from holding company 15,000 Interest paid (7,407) Cash flows from financing activities 7,593 Net increase in cash and cash equivalents (24,858) Cash and cash equivalents at beginning of the period 40,165 Cash and cash equivalents at end of the period 3 15,307 5

6 NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS These notes form an integral part of, and should be read in conjunction with, the accompanying financial statements. 1. Corporate information Rubicon Offshore Holdings Limited (the "Company ) was incorporated in Bermuda under The Companies Act 1981 of Bermuda on 19 February 2007 as an exempted company with limited liability. The principal activity of the Company is investment holding. There were no significant changes in the activities of the Company during the financial period. 2. Property, plant and equipment Vessels and Facilities US$J000 Furniture, Fittings and Other Eauioment US$J000 Total USS'OOO Cost Balance as at 1 January , ,364 Additions 66, ,759 As at 30 June , ,123 Accumulated depreciation Balance as at 1 January , ,451 Depreciation charge for the period 1, ,953 As at 30 June , ,404 Net book value As at 30 June , ,719 6

7 NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS 3. Cash and cash equivalents Cash at bank and on hand Short term bank deposits 2,058 13,249 15,307 Short term bank deposits at the balance sheet date had an average maturity of 1 month from the end of the financial period with a weighted average effective interest rate of 1.92% per annum. Bank deposits amounting to US$8m are pledged as a guarantee with a bank for the issuance of a performance guarantee. 4. Trade and other receivables US$'000 Trade receivables 4,384 Amount due from related corporations 1,294 Other receivables 1,505 7, Derivative financial instruments Value of call option at beginning and end of financial period 1,741 The derivative financial instrument relates to the value of a call option embedded in the US$180 million bond. 6. Inventories Balance as at 1 January 2008 Additions Balance as at 30 June

8 NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS 7. Other current assets Deposits Prepayments 1, , Trade and other payables Trade payables 14,560 Amount due to related corporations 19,120 Accrued operating expenses 2,229 35, Borrowings Bond Financing - Current - Non-current 2, , , Deferred revenue Current 4,406 N on-cu rrent 11,141 15,547 Deferred revenue relates to advance charter fees received which will be recognised on a straight line basis over the estimated production life of 5 years of the oil field on which the vessel will be located. The portion of the deferred revenue that will be recognised in the income statement within the next twelve months after the balance sheet date is classified as current. 8

9 NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS 11. Share capital No. of shares Balance as at 1 January ,001 36,068 Issuance of ordinary shares 99 15,000 Balance as at 30 June ,100 51, Revenue and Other income US$'000 Revenue from vessel operations Vessel charterfees 6,112 Other income - Interest on fixed deposits 245 6, Expenses by nature The following items have been included in arriving at loss from operations: Maritime and engineering handling fees 1,084 Legal and professional fees 386 Office rental 160 Employee compensation 3,653 Depreciation of property, plant and equipment (Note 2) 1,953 Insurance expenses 38 Travel and subsistence 913 Foreign exchange differences 619 Other expenses 486 Total costs of services and administrative expenses 9, Finance expense Bond interest (net of capitalized interest) 6,413 Amortisation of bond issuance fee 130 6,543 9

10 NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS 15. Taxation No provision for taxation is made as the Group is in a net loss position. 10