Release of Q2 2007 financial report

EBITDA was USD 41.7 million (USD 5.3 million) in the second quarter of 2007. Total revenue amounted to USD 255.0 million (USD 204.2 million), of which Construction contract revenue related to the conversion of YÙUM K'AK'NÁAB amounted to USD 176.8 million (USD 176.4 million). The increase in EBITDA and revenue is primarily attributable to increased activity arising from the acquisition of APL (Advanced Production & Loading) Plc (APL), the finalization of the conversion of YÙUM K'AK'NÁAB, and share of profit of associates.
Capital expenditures related to YÙUM K'AK'NÁAB (presented as Construction contract expenses) in the second quarter were USD 150.7 million (USD 176.4 million), bringing the conversion project to an end. First oil reached the FPSO on 18 June 2007 and the acceptance certificate was signed with PEMEX on 30 June 2007. Net profit from the conversion project recognised in the income statement in the second quarter amounted to USD 26.1 million.
Share of profit of associates amounting to USD 5.2 million (USD 0.0 million) relates to the Group's investments in Prosafe SE, APL (until 8 May 2007) and Nexus Floating Production Limited (Nexus). At 30 June 2007, the Group owned 24.33% of the shares in Prosafe and 40.18% of the shares in Nexus.
 
Operating expenses were USD 229.0 million (USD 198.9 million) in the second quarter 2007. The increase in operating expenses is attributable to the increased activity from the acquisition of APL, additional office staff and provision for doubtful debt of USD 8.3 million recorded in the second quarter.
 
Net financial items for the second quarter amounted to USD -3.4 million (USD -1.6 million). The reduction in net financial result relates to increased financing expenses arising from the acquisition of shares in Prosafe and the acquisition of the shares in APL.
Net profit in the second quarter amounted to USD 25.9 million (USD -6.3 million).
Total assets amounted to USD 2,924.0 million at 30 June 2007 (USD 717.2 million). The increase in total assets is a result of the conversions of YÙUM K'AK'NÁAB and BW Peace, increased activity from the acquisition of APL and Prosafe shares, and the acquisition of the vessels BW Carmen and BW Pioneer.
Total equity amounted to USD 1,546.1 million at 30 June 2007 (USD 368.7 million). A private placement was completed during the second quarter, resulting in a net increase in equity of USD 85.9 million.
 
Floating production
(Figures in brackets refer to corresponding figures for 2006)
EBITDA for the second quarter 2007 amounted to USD 36.3 million (USD 5.3 million). The improvement is primarily a result of the finalization of the conversion of YÙUM K'AK'NÁAB (which commenced operation from 30 June 2007). In addition, share of profit of associates amounted to USD 5.6 million in the second quarter 2007(USD 0.0 million).
Cash flow from operating activities in the second quarter 2007 was USD - 21.2 million (USD 5.7 million). The negative cash flow relates to an increase in working capital.
 
Technology
(Figures in brackets refer to corresponding figures for 2006)
EBITDA for the period of 8 May to 30 June 2007 amounted to USD 5.4 million. The EBITDA-margin was 9.7%.
Cash flow from operating activities in the period of 8 May to 30 June 2007 was negative by USD 25 million. Increase in working capital related to ongoing projects is the reason for this development.
 
 
 
 
Board of Directors, 27 August 2007
 
 
Please see link for full financial report.