STAVANGER, Norway, Feb. 17, 2003 (PRIMEZONE) -- Smedvig (NYSE:SMVa) (NYSE:SMVb) reports preliminary consolidated operating profit for 2002 of NOK 413 million as compared to NOK 996 million in the previous year. The result was impacted by a significant reduction in the average dayrate and utilization of the mobile units however offset by record results for the tender rig operations. Operating profit for the fourth quarter amounted to NOK 52 million as compared to NOK 48 million in the previous quarter.
Net financial expenses for the year were NOK 169 million as compared to NOK 545 million in the previous year. The decline was mainly attributable to a significant reduction in interest expenses. For the fourth quarter, net financial expenses amounted to NOK 75 million.
Consolidated net loss for the year was NOK 802 million as compared to net income of NOK 1068 million in 2001. The loss was impacted by a write-down of the book value of West Navion by NOK 1313 million, offset by a gain of NOK 351 million from the sale of West Vanguard in the fourth quarter. The write-down was triggered by the implementation of a new Norwegian Accounting Standard for impairment of assets. Net loss for the fourth quarter was therefore NOK 1030 million as compared to net income of NOK 1 million for the previous quarter.
In 2002, the Company generated a cash flow of NOK 974 million, down from NOK 1484 million in 2001. For the fourth quarter the cash flow, including the sale of West Vanguard, amounted to NOK 428 million, up from NOK 66 million in the previous quarter.
Cash flow per share for the year amounted to NOK 11.85, down from NOK 17.99 in 2001. Earnings per share were minus NOK 9.74 in 2002 as compared to NOK 12.97 in 2001.
The Board proposes a dividend of NOK 1.00 per share for 2002, down from NOK 1.50 in 2001.
The Mobile Units incurred an operating loss of NOK 87 million for the year as compared to an operating profit of NOK 650 million in 2001. The decrease was attributable to a substantial decline in average dayrate and utilization for the drilling units as well as additional costs in connection with short yard-stays for three units during the year. The utilization rate for the mobile units averaged approximately 76 percent in 2002 as compared to 94 percent in 2001. For the fourth quarter the operating loss was NOK 62 million as compared to an operating loss of NOK 73 million in the previous quarter.
Operating profit from Tender Rigs for the year amounted to NOK 443 million as compared to NOK 342 million in 2001. The result is the best ever for this division. The substantial increase was primarily due to a full year operation of the newest unit West Alliance and a 99 percent utilization of the total tender rig fleet as compared to 89 percent in 2001. For the fourth quarter operating profit amounted to NOK 95 million as compared to NOK 111 million in the previous quarter.
Operating profit from Platform Drilling for the year amounted to NOK 63 million as compared to NOK 50 million in 2001. The increase was due to higher overall activity. For the fourth quarter operating profit amounted to NOK 19 million as compared to NOK 12 million in the previous quarter.
"The operating result for 2002 is largely caused by soft markets for mobile units, in particular in the North Sea. However, the strong operating profit from the tender rigs reflects Smedvig's solid market position in one of the fastest growing energy markets in the world. At the beginning of 2003, Smedvig had an average contract backlog of eight months for the mobile units and 26 months for the tender rigs. This contract situation is favorable in today's climate, given the strong balance sheet, however, the outlook remains challenging," says Kjell E. Jacobsen, Chief Executive Officer of Smedvig asa.
Smedvig asa is an offshore drilling contractor headquartered in Stavanger, Norway. The company provides drilling and well services in the North Atlantic and Southeast Asia. Smedvig's main activities are divided into mobile units, tender rigs and platform drilling. Smedvig has a fleet of three modern drilling rigs, one drillship and nine tender rigs. The company holds contracts for production drilling, well services and maintenance on fixed installations.
A telephone conference regarding Smedvig's preliminary results will be arranged Monday February 17, at 11:00 a.m. New York time, 5:00 p.m. Norwegian time. Call-in numbers are: US (800) 230 1074, Norway and Europe (612) 288 0329. Replays are available from February 17, 02:30 p.m. (NY) until February 24, 11:59 p.m. at (800) 475 6701 (US), (320) 365 3844 (Europe), access code 673675.
The full report including tables is available for download at the following link:
This press statement includes forward-looking statements under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual performance could differ materially from that anticipated in the forward-looking comments, as a result of risks, uncertainties and other factors, as set forth in the annual report on Form 20-F dated June 10, 2002. A copy of the Form 20-F is available upon request from the Company or on our website www.smedvig.no.