25 April 2007 Siem Offshore Inc. (Oslo Stock Exchange: SIOFF) today reports results for the first quarter 2007.

Transcription

1 SIEM OFFSHORE INC. REPORT FOR THE FIRST QUARTER April 2007 Siem Offshore Inc. (Oslo Stock Exchange: SIOFF) today reports results for the first quarter FINANCIALS Results for the first quarter The consolidated financial statements for Siem Offshore are prepared in accordance with International Financial Reporting Standards (IFRS). The consolidated Profit & Loss Accounts presented in the report for the first quarter reflect the new reporting standard developed by IFRS during As a consequence, the result from associated companies is presented as a financial item and the realised and unrealised currency gain/losses arising from the revaluation to market of open foreign exchange contracts are presented as an operational item. The net profit attributable to shareholders for the first quarter was USD 14.5 million, or USD 0.09 per share. The operating revenues and operating result were USD 28.1 million and USD 17.2 million, respectively. The operating profit includes realised and unrealised currency gains of USD 9.3 million arising from the revaluation to market of open currency exchange contracts during the quarter. Such currency exchange contracts have been entered into in order to fix the NOK commitment in relation to the vessels under construction at Norwegian yards. Depreciation and amortisation were USD 3.8 million. Net financial items were negative with USD 2.9 million and includes a negative result from associated companies of USD 0.3 million. The Company held ownership in a total of 34 vessels during the first quarter, of which 13 were under construction and one was under conversion. The fleet in operation includes 8 platform supply vessels (PSVs), 10 standby/crew vessels in Brazil, one well stimulation vessels and one standby vessel. Four of the PSVs operated in the spot market during the first quarter. The spot rates for such vessels were at a good level. The vessels operated in the spot market experienced periods with non-consecutive employment in the first half of the quarter. However, the utilisation ratio improved gradually during the quarter. A total of 60 days without employment was recorded for the 8 PSVs, of which 35 days were due to technical off-hire. The operating expenses include costs related to unplanned maintenance for two of the PSVs. The operating expenses also include costs that are reimbursable by charterers. Such reimbursement is recorded as operating revenue. Comparable pro forma results for the first quarter Comparable pro forma accounts for 2006 are prepared to reflect the restated 2006 accounts of the Company as if the acquisition of Rovde Shipping AS had been implemented with effect 1 January Accounts with comparable 2006 pro forma figures are presented as an enclosure to this report. Cash, Debt and Share Capital per first quarter The cash position at 31 March 2007 was USD 39 million. The gross interest-bearing debt was USD 174 million. 1

2 Future yard instalments for vessels under construction totalled NOK 4.8 billion at the 31 March Such yard instalments fall due in 2007 (NOK 1.0 billion), 2008 (NOK 0.9 billion), 2009 (NOK 2.5 billion), and 2010 (NOK 0.4 billion). Related party transactions At 31 March 2007, the Company held USD 2.5 million as a dividend prepayment from Overseas Drilling Limited. Subsequent events In April 2007, the Company entered into a 5 year firm charter contract with Subsea 7 Inc for a Multipurpose Field- & ROV-Support Vessel of MT6016L design. The vessel is under construction at the Kleven yard and is scheduled for delivery in March The charter period will commence upon the delivery of the vessel. The development of the Siem WIS technology is progressing with a positive trend. Initial presentations of the basic technology have been held for clients at the test site with encouraging feedback. The next phase of development, which aims at a full scale concept testing and preparation of a prototype, has commenced. EMPLOYMENT OF THE FLEET The Sasha commenced its new 18 months charter for seabed logging in mid-march and in direct continuation of the previous charter. The Sophie Siem continued on her initial 12 months charter during first quarter. The Siem Danis operated in the spot market during first quarter in addition to conducting work for Technip. The charter for Technip was re-commenced on 16 April The Siem Louisa operated in the spot market during first quarter and commenced the 7 months trenching campaign on the NordNed project on 10 April The Siddis Skipper continued on the charter for MLS, which expires in January The Siem Mariner operated in the spot market during first quarter. The vessel is scheduled to commence a 5 years bareboat charter in July The Siem Carrier operated in the spot market until 19 January when it commenced a 7 month contract. The Ocean Commander, which is on a bareboat charter to the Company, continued on its 18 months contract that commenced in August The conversion of the JOIDES Resolution started in fourth quarter 2006 and is scheduled for a period of approximately 12 months. Following the conversion, the vessel shall commence its seven years contract with Texas A&M Research Foundation for the Integrated Ocean Drilling Program s Phase II. The 10 supply/crew vessels in Brazil, owned and operated by the subsidiary, Siem Consub S.A., continued on contracts with Petrobras and performed well during the first quarter. MARKET AND OUTLOOK This spot market for platform supply vessels (PSVs) was tight during the first quarter with limited tonnage available. Dayrates in the spot market were higher than experienced during similar periods in previous years. There has been an increasing demand from charterers for long-term charters for PSVs. These requirements have contributed to a continued strong spot market and higher rates for long-term charters. The market for anchor-handling tug supply vessels (AHTS) remained strong and was considerably stronger than first quarter

3 The market for construction and multipurpose vessels remains strong. The availability of vessels is limited and charterers are now focused on vessels for delivery in 2008 and The activity level and utilisation of PSVs and AHTS is expected to stay high during second quarter due to the start-up of the seasonal pipe-laying and construction programs. The market for construction and multipurpose vessels is also expected to stay firm. It is expected that charterers will continue to secure vessels one to two years in advance. On behalf of the Board of Directors of Siem Offshore Inc. 25 April 2007 Kristian Siem Chairman 3

4 Siem Offshore Inc Consolidated Profit & Loss Accounts (Unaudited figures in USD 1,000) 1Q Q Operating revenue 28,147 10,727 73,554 Operating expenses -16,383-7,379-53,074 Depreciation and amortisation -3,818-1,562-10,895 Other gains /(losses) Sale of assets 0 3,917 11,160 Other gains /(losses) Currency exchange forward contracts 9,267 2,722 20,789 Operating profit 17,213 8,425 41,533 Net currency items Result from associated companies ,151 Financial income Financial costs -2, ,460 Net financial items -2, ,213 Net profit before taxes and minorities 14,298 8,215 45,747 Tax expense ,219 Net Profit 14,276 8,068 44,527 Attributable to minorities Attributable to equtiy holders 14,473 8,068 45,012 Average number of issued shares ('000) 167, , ,791 Earnings per share, USD per share Consolidated Balance Sheet (Unaudited figures in USD 1,000) Fixed assets Intangible fixed assets 9, ,939 Tangible fixed assets 244,356 79, ,762 Investment in associates and other financial fixed assets 18,085 17,216 19,271 Total long-term assets 271,674 97, ,972 Debtors, prepayments and other current assets 53,365 37,078 47,630 Bank deposits 39,437 26,972 34,384 Total current assets 92,801 64,050 82,014 Total assets 364, , ,986 Shareholders equity Paid-in capital 113, , ,325 Other equity 20,338-28,627-26,328 Net profit 14,473 8,068 45,012 Shareholders equity 148,654 90, ,008 Minorities 11,297 3,462 10,107 Total equity 159,952 93, ,116 Liabilities Deferred taxes 8,068 7,503 7,907 Other provisions Total provisions 8,363 8,141 8,196 Finance debt falling due after 1 year 170,949 40, ,384 Other long-term liabilities Total other long-term liabilities 171,242 40, ,670 Finance debt falling due within 1 year 3,575 2,547 3,521 Trade creditors and other short-term liabilities 21,343 16,899 23,483 Total current liabilities 24,918 19,446 27,004 Total liabilities 204,523 67, ,870 Total shareholders equity and liabilities 364, , ,986 4

5 Siem Offshore Inc - Notes to the 1Q 2007 report Shareholders' Equity (Amounts in USD 1 000) 31/03/ /03/ /12/2006 Shareholders' equity beginning of period 132,008 54,480 54,480 Raising of new equity, net ,639 29,369 Own shares 0 0-1,364 Net profit to equity holders 14,473 8,068 45,012 Investments attributable to minorities Other changes Currency translation differences 2,615 2,213 4,197 Shareholders' equity end of period 148,654 90, ,008 Cash-flow Statement (Amounts in USD 1 000) 31/03/ /03/ /12/2006 Cash-flow from operations Profit before taxes and excluding interest 16,800 8,624 49,915 Interest paid -1, ,816 Paid taxes in the period Result from associated companies ,151 Gain on sale of assets 0-3,917-11,160 Dividend received 2, ,959 Depreciation, amortisation and impairment of fixed assets 3,818 1,562 10,895 Change in working capital -8,853-8,017-7,762 Other changes Cash-flow from operations 13,037-2,099 34,189 Cash-flow from investment Interest received Investment in fixed assets and instalments shipbuilding contract -6,155-23, ,339 Short-term loan to related parties Investment in shares -2, ,464 Received from sale of assets 0 5,989 31,501 Repayment of paid in capital associated Companies 0 0 1,381 Paid- in capital Siem Meling Offshore DA 0 0-5,219 Cash received from acquisition of shares in subsidiaries 0 9,429 12,057 Cash-flow from investments -8,340-8, ,038 Cash-flow from financing activities Buy back of own shares 0 0-1,364 Received from raising of new equity ,462 Distribution to minorities 0 0-3,600 Received from raising of new long-term debt 0 14, ,345 Repayment of long-term interest bearing debt -1, ,666 Cash-flow from financing activities -1,386 14, ,176 Effect of exchange rate differences 1,741 1,616-5,652 Net change in cash 5,053 5,263 12,675 Cash at bank start of period 34,384 21,709 21,709 Cash at bank end of period 39,437 26,972 34,384 Net change in cash 5,053 5,263 12,675 5

6 Net interest bearing debt (Amounts in USD 1 000) Bank deposits 39,437 26,972 34,384 Short-term interest bearing debt -3,575-2,547-3,521 Long-term interest bearing debt -171,242-40, ,670 Net interest bearing debt -135,381-15, ,806 Siem Offshore Inc - Notes to the 1Q 2007 report Long-term debt Facility Drawn Creditor / Guarantor Currency Amount Amount Interest rate Duration Instalments HSH Nordbank AG USD 220, ,500 (Libor %, effective 6.10%) Quarterly instalments of USD Quarterly instalments of USD HSH Nordbank AG - Working Capital Facility USD 30,000 16,000 (Libor %, effective 6.10%) 2009 DvB Bank N.V. Nordic Branch GBP 12,250 11,730 (Libor %, effective 6.14%) Semi annual instalments of GBP 520 Glitnir Bank ASA NOK 30,000 27,333 (Nibor %, effective 5.32%) Quarterly instalments of NOK 938 SpareBank1 SR-Bank NOK 328, ,000 (Nibor %, effective 4.88%) Semi annual instalments of NOK Banco Nacional Development Social USD 4,596 4, % (fixed) 2012 Semi annual instalments of USD 460 Segment reporting Revenue by business area Supply/crew fleet 24,288 9,670 63,166 MRSV 3, ,799 Combat Management Systems 674 1,057 5,364 Other Total 28,147 10,727 73,554 Depreciation by business area Supply/crew fleet 3,561 1,446 10,676 MRSV Combat Management Systems Other Total 3,818 1,562 10,895 EBIT by business area Supply/crew fleet 13,631 3,853 28,712 MRSV Combat Management Systems Other 4,429 4,452 12,271 Total 17,213 8,425 41,533 6

7 Siem Offshore Inc - Proforma Consolidated Profit & Loss Accounts (Unaudited figures in USD 1,000) 1Q Q Actual Proforma Proforma Operating revenue 28,147 13,677 76,666 Operating expenses -16,383-10,219-56,195 Depreciation and amortisation -3,818-2,312-11,480 Other gains /(losses) Sale of assets 0 3,917 11,160 Other gains /(losses) Currency exchange forward contracts 9,267 2,722 20,789 Operating profit 17,213 7,785 40,940 Net currency items Result from associated companies ,377 Financial income Financial costs -2, ,517 Net financial items -2, ,388 Net profit before taxes and minorities 14,298 7,736 45,328 Tax expense ,219 Net profit 14,276 7,589 44,109 Attributable to minorities Attributable to equtiy holders 14,473 7,589 44,662 Consolidated Balance Sheet (Unaudited figures in USD 1,000) Actual Proforma Proforma Fixed assets Intangible fixed assets 9, ,939 Tangible fixed assets 244,356 79, ,762 Investment in assosiates and other financial fixed assets 18,085 17,216 19,271 Total long-term assets 271,674 97, ,972 Debtors, prepayments and other current assets 53,365 37,078 47,630 Bank deposits 39,437 26,972 34,384 Total current assets 92,801 64,050 82,014 Total assets 364, , ,986 Shareholders equity Paid-in capital 113, , ,325 Other equity 20,338-28,148-25,979 Net profit 14,473 7,589 44,662 Shareholders equity 148,654 90, ,008 Minorities 11,297 3,462 10,107 Total equity 159,952 93, ,115 Liabilities Deferred taxes 8,068 7,503 7,907 Other provisions Total provisions 8,363 8,141 8,196 Finance debt falling due after 1 year 170,949 40, ,384 Other long-term liabilities Total other long-term liabilities 171,242 40, ,670 Finance debt falling due within 1 year 3,575 2,547 3,521 Trade creditors and other short-term liabilities 21,343 16,899 23,483 Total current liabilities 24,918 19,446 27,004 Total liabilities 204,523 67, ,870 Total shareholders equity and liabilities 364, , ,985 7