STAVANGER, Norway, April 28, 2003 (PRIMEZONE) -- Smedvig (NYSE:SMVa) (NYSE:SMVb) today reported consolidated operating profit of NOK 59 million for the first quarter as compared to NOK 52 million in the previous quarter. The increase is primarily attributable to improved results of the Mobile Units.
Net financial expenses for the first quarter was NOK 47 million as compared to NOK 75 million in the previous quarter. The decline is mainly attributable to reduced interest expenses.
Net income for the first quarter was NOK 2 million as compared to a net loss of NOK 1,030 million in the previous quarter, which included a write-down for West Navigator (ex West Navion) offset by a gain of sales for West Vanguard of net NOK 962 million.
Earnings per share were NOK 0.03 for the first quarter.
The Mobile Units incurred an operating loss of NOK 17 million as compared to an operating loss of NOK 62 million in the previous quarter. The improvement is due to lower costs in the first quarter. The overall utilization rate for the mobile unit fleet was 76 percent as compared to 86 percent in the previous quarter, due to one unit in lay-up during the quarter.
Operating profit from the Tender Rigs amounted to NOK 57 million as compared to NOK 95 million in the previous quarter. The reduction is due to lower utilization rate for the tender rig fleet averaging 83 percent as compared to 96 percent in the previous quarter, as two units had planned yard-stays prior to entering into long-term contracts.
Operating profit from the Platform Drilling Division amounted to NOK 20 million as compared to NOK 19 million in the previous quarter. The operations in the platform drilling division proceeded satisfactorily during the quarter.
Analyst Contact: Jim Datland, Investor Relations Manager +47 51 50 99 19
Media Contact: Alf C Thorkildsen, Chief Financial Officer +47 51 50 99 19
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 and has one tender rig under construction. The company holds contracts for production drilling, well services and maintenance on fixed installations.
This press release 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 web-site www.smedvig.no.
Smedvig asa, P.O. Box 110, 4001 Stavanger, Phone: +47 51 50 99 00, Fax: +47 51 50 96 88, Web site: www.smedvig.no, E-mail: smedvig@smedvig.no
A telephone conference regarding Smedvig's first quarter result will be arranged Monday April 28, at 11:00 a.m. New York time, 5:00 p.m. Norwegian time. Call-in numbers are from Norway and Europe: +1 612 332 0632, from the USA: 888 273 9885. Replays are available from 02:30 p.m. (NY) April 28, until 11:59 p.m. (NY) May 5, at +1 320 365 3844 (Int.), 800 475 6701 (US), access code 682356.