20 05 Quarter 2005 Eidesvik Offshore ASA
Eidesvik Offshore ASA The 2005 quarterly accounts are prepared in accordance with IFRS/IAS accounting principles. Operating income in Q3-2005 was NOK 189,8 mill compared to NOK 140,0 mill for Q3-2004. The operating result (EBIT) is NOK 67,0 mill compared to NOK 33,9 mill for Q3-2004. The Pretax profit for Q3 2005 is NOK 70,5 mill compared with last year s Q3 pre-tax result of NOK 24,7 mill. The major Q3 events are the delivery of the Platform Supply Vessel M/V Viking Thaumas from the yard in July 2005 at a book value of NOK 170,5 mill, the sale of 33,3% of Team Atlantic AS and purchase of 40% of the shares in MES Invest AS. Jan Fredrik Meling took up his position as CEO as of 1 st September. Results 3 rd Quarter 2005 Consolidated gross operating income for the third quarter of 2005 is NOK 189,8 mill, representing an increase of 35 % compared to last year. The increase in income is mainly a result of: - the newbuilt PSV Viking Thaumas being traded in the North Sea spot market since July 2005 - the PSV Viking Avant, has been operated on a long term contract since delivered in December 2004 - PSV Viking Swan has been operated since May 2005 - the seismic survey vessel M/V Geo Searcher has been operated on a Time Charter Contract in Q3-2005, compared to a Bareboat Contract in Q3-2004. The increase in crew expenses and other operating expenses are as expected and closely connected to the increased activity. The cost for hire of 3 vessels on bareboat contracts for Q3-2005 is NOK 15,4 mill. The writedown on assets booked in 2004 is based on a fair value assessment of the cable laying vessel M/V Oceanic Viking. A cancellation fee of NOK 56,8 mill for the same vessel is included as freight income in accumulated figures per 30.09.04. Variation in value of interest hedging instruments has increased the financial income by NOK 8,4 mill for Q3-2005. Exchange-gain or -losses on long term loans are entered in the P&L account when realised. Unrealised gains and losses to the principal loan amounts are accounted for in the Balance Sheet only (hedge accounting principle). Profit and loss account Q3 Q Q3 30.09 30.09 (NOK 1000) 2005 2004 2005 2004 Operating Income: Freight income (Note 1) 189.727 140.045 489.722 437.484 Other income 42 3.127 Total operating income 189.769 140.045 492.849 437.484 Operating Expenses Crew expenses 50.545 40.727 142.167 113.674 Other operating expenses 27.966 30.174 89.179 77.231 Vessels on bareboat charter 15.410 8.102 34.207 18.934 Total operating expenses 93.921 79.003 265.553 209.839 Operating result before depreciations 95.848 61.042 227.296 227.645 Ordinary depreciation 28.826 27.134 85.520 79.035 Writedown on assets 0 0 0 55.988 Operating result 67.022 33.908 141.776 92.622 Result associated companies 7.898 2.350 10.405 6.858 Financial Items Financial income 9.674 347 21.196 1.442 Financial expenses -13.406-10.077-52.708-35.139 Realized agio (disagio) -644-1.843 4.998 3.528 Net financial items -4.376-11.573-26.514-30.169 Pre-tax profit 70.544 24.685 125.667 69.311 Taxes -7.438 1.284-8.323 1.701 Profit 63.106 25.969 117.344 71.012 Hereof minority share 1.820 2.788 10.257 5.869 Hereof majority share 61.286 23.181 107.087 65.143 Profit per share (NOK) 2,09 0,86 4,30 2,60 Cash flow per share (NOK) (Note 2) 3,30 1,72 7,74 7,49 Average number of shares (Note3) 30.150.000 30.150.000 27.289.560 27.289.560 Profit per share for the first 9 months of 2005 is NOK 4,30 compared to NOK 2,60 per September 30 th 2004. The number of shares are set as a weighted average. Unauditted figures. NOTE 1 30.09.2004 figures includes a termination fee of NOK 56,8 mill for M/V Oceanic Viking NOTE 2 Cash flow is calculated as Pre-tax profit + depreciation + write downs NOTE 3 Average number of shares for 2005 is applied to the 2004 figures to present comparative figures per share.
Cash flow statement 3. Quarter 2005 3. Quarter 2004 01.01-30.09 2005 01.01-30.09 2004 Cash flow from operating activity 49.103 24.906 140.496 174.859 Cash flow from investment activity (137.565) (43.674) (156.499) (162.473) Cash flow from finance activity (20.575) (16.290) 32.206 15.450 Changes in liquidity over the period (109.037) (35.058) 16.203 27.836 Liquid assets at the beginning of the period 269.471 136.814 144.231 73.920 Liquid assets at the end to the period 160.434 101.756 160.434 101.756 Balance Sheet ASSETS 3 0. 0 9. 2 0 0 5 30.09.2004 31.12.2004 Fixed assets: Deferred tax assets 1 6. 0 1 6 8.848 10.283 Other assets 1 6. 7 7 6 8.351 9.260 Vessels 2. 0 0 2. 8 6 1 1.597.343 1.883.096 Contracts newbuildings 0 42.035 Other long-term receivables 1. 4 1 5 11.946 35.683 Shares 5 9. 9 7 2 72.708 69.634 Total fixed assets 2. 0 9 7. 0 4 0 1.741.231 2.007.956 Current assets: Account receivables, freight income 1 3 4. 8 8 5 91.990 78.488 Other short-term receivables 7 7. 8 4 1 62.457 41.358 Other securities 2 1. 0 6 2 4 4 Bank deposits 1 6 0. 4 3 4 101.756 144.231 Total current assets 3 9 4. 2 2 2 256.207 264.081 Total assets 2. 4 9 1. 2 6 2 1.997.438 2.272.037 EQUITY AND LIABILITIES Equity capital Paid-in capital 4 4 1. 3 1 4 1.010 1.010 Retained earnings 8 3 5. 6 4 0 618.856 643.618 Minority interests 7 2. 9 3 6 59.854 62.289 Total equity capital 1. 3 4 9. 8 9 0 679.720 706.917 Liabilities: Bank overdrafts 0 0 12.380 Other long-term liabilities 3 8. 5 1 6 208.575 166.293 Interest-bearing mortgage debt 9 0 9. 8 8 5 910.482 1.193.207 Total long-term liabilities 9 4 8. 4 0 1 1.119.057 1.371.880 Short-term liabilities: Debt to suppliers 2 8. 0 3 3 24.345 26.329 Other short-term liabilities 1 6 4. 9 3 8 174.316 166.911 Total short-term liabilities 1 9 2. 9 7 1 198.661 193.240 Total liabilities 1. 1 4 1. 3 7 2 1.317.718 1.565.120 Total equity and liabilities 2. 4 9 1. 2 6 2 1.997.438 2.272.037 Unauditted figures Financing and Capital Structure Book equity at September 30 th 2005 is NOK 1.349,9 mill, i.e an equity ratio of 54,2%. The book equity per share by the end of Q3-2005 was NOK 44,77. The corresponding market price at Oslo Stock Exchange closed at NOK 49,90, i.e a market value of NOK 1.504,5 mill. The book value of vessels at September 30 th 2005 is NOK 2.002,9 mill. The Tax Assessment Board at the Central Tax Office has passed a resolution regarding gain on forward sale of USD in Eidesvik Shipping AS, The resolution concludes with a claim for payable tax of NOK 15,4 mill for the years 2002, 2003 and 2004. The resolution is still under review by Eidesvik, and may be appealed. NOK 10,0 mill relates to the USD/NOK hedging of the purchase price for vessels, which has been added to the book value of Vessels. The remaining NOK 5,4 mill tax is related to forward sale of USDincome, and accounted for as Taxes in the P&L Account. The full amount of NOK 15,4 mill Tax Payable, is included in the Balance Sheet as Other Short-term Liabilities. Effective from January 1 st 2005, a new legislation for taxation of currency gain within the Norwegian Shipping Tax Regime has been passed. According to the new legislation, only a part of currency gain will be included in taxable income. A proposed regulation prescribing the details for taxation of currency gains earned before January 1 st 2005 has been released for review. the accumulated gains as of January 1 st 2005 may be taxed and become payable over a period of time. Since no final decision has been made, Eidesvik has decided not to recognise any deferred tax in the accounts as of September 30 th 2005.
Segment reporting Operating income Seismic/Cable Subsea PSV/AHST Other Total 3. Quarter 2005 41.488 56.049 85.397 6.835 189.769 3. Quarter 2004 39.521 55.901 40.308 4.315 140.045 Total 2004 227.689 188.718 152.824 19.420 588.651 Operating profit 3. Quarter 2005 14.954 19.296 30.514 2.257 67.021 3. Quarter 2004 15.663 15.287 7.725-4.767 33.908 Total 2004 63.400 45.425 29.583-14.224 124.184 M/ V Viking Swan Market The underlying market drivers are all positive for the segments Eidesvik Offshore ASA operates in. Increased demand for oil, lack of production capacities and increased E&P spendings are significant factors driving the market. We see a solid upturn both in seismic and subsea segments with increased demand world wide. We are positive to these segments in a long term perspective. The North Sea market for PSV and AHTS has been tight also during the 3rd quarter of this year. We do not expect the next quarter to be as tight as we have seen in the past quarters due to seasonal changes in the market in connection with lower construction activity in the winter season. The many newbuildings may also effect the market. We are positive to the North Sea market in 2006. The West Africa region looks promising for the coming years. Eidesvik is well established in Nigeria and expect to grow in the West Africa market. VS 493 GASS AVANT Eidesvik Offshore ASA N-5443 Bømlo, Norway Telephone: +47 5344 8000 Telefax: +47 5344 8001 e-mail: office@eidesvik.no Web-page: www.eidesvik.no
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