BWO - Summary Q2 - 2006

Bergesen Worldwide Offshore Ltd (BWO) reports EBITDA of USD 5.3 million, EBIT of minus USD 2.9 and net loss of USD 6.3 million for Q2 2006.  The quarterly operating result reflects cost pertaining to start-up of the Berge Helene in Mauritania, cost related to the listing of the company on the OSE and an aggressive growth in the organization through staff hires.  The company is on track with its projects and its general development.
  • In 2Q the number of permanent staff increased by 23 persons, from 93 to 116 and hired consultants increased by 17 persons, from 74 to 91.
  • The BW Enterprise conversion is on budget and on schedule. The FPSO is, as planned, expected to leave the conversion yard in Singapore in November 2006.  In 2Q the BW Enterprise contract was re-stated as a financial lease contract, in which the FPSO will be delivered to the customer in March 2007. Project costs are recognized in profit and loss according to IAS 11 (Construction contracts). Revenue related to the contract is recognized only to the extent of contract costs incurred.
  • In April, USD 150 mill of the debt owned by the Company to BW Limited was converted into the Company's common shares and into contributed surplus shareholder equity.
  • In April, the Company carried out a Private Placement providing net proceeds of USD 291 million in new equity to the Company. Total 2Q private placement and listing costs, recorded in the profit and loss account, were USD 1.5 million.
  • In April, the Company entered into an agreement with Spencer Energy to purchase the FPSO BW Endeavour. As part of this transaction, Spencer subscribed for 6.1 million BWO shares at a price of USD 3.8 per share. This placement provided USD 23.2 million in new equity.
  • Investments in second quarter 2006 amount to USD 133 million, which relate to on-going conversion projects and acquisition of BW Endeavour and BW FPSO LPG 1. Total assets as at 30 June amount to USD 432 million.
  • In May the Company accepted a fully committed underwritten offer for a USD 500 million unsecured reducing revolving loan facility. The facility was later increased to USD 600 million. USD 400 million was drawn from this facility in July to refinance the outstanding debt to BW Limited. 
  • In May the Company entered into an agreement to purchase the Suezmax tanker MT Genie, tbn BW Pioneer, 155,000 dwt, 1.2 million bbl, built in 1976 for a future FPSO conversion project. The vessel will be delivered to BW Offshore in January 2007.
  • In June the Company bought the BW LPG FPSO I, 70,938 cub.m., built 1977 for future conversion project to a LPG FPSO. The vessel was delivered in June 2006.
  • In June the Company signed a Letter of Intent with Peak Petroleum Industries and Equator Exploration in which the purpose is to negotiate an agreement for the FPSO BW Endeavour at the Bilabri Field, Nigeria. The intended term of the contract is a firm period of 5 years with up to an additional option to extend the contract for up to 5 years. 
  • On May 31 the Company's shares were listed on the Oslo Stock Exchange, under the ticker code "BWO".
    The full Summary Q2 - 2006 including tables can be downloaded from the following link: