- ProSafe presents its best year-end result ever:
- Operating revenues increased by 47% over the prior year to MNOK 2,305.
- Operating profit increased by 206% to MNOK 609.
- EPS increased by NOK 13.72 to NOK 14.60. EPS adjusted for currency loss was NOK 18.34.
- ProSafe presents a voluntary offer to acquire all shares in Nortrans Offshore Ltd.
- Ocean Oil awards ProSafe a new bareboat contract for the use of the accommodation and service rig Jasminia on the Cantarel field in Mexico. The contract has a duration of 674 days, and the estimated contribution is approx. MNOK 200.
(Figures in brackets refer to the same period last year)
Main Figures
In 2000, ProSafe achieved an operating profit of MNOK 609 (MNOK 199). This is the best year-end operating profit ever for the company, mainly by reason of high utilisation within Offshore Support Services.
Operating profit for the 4th quarter equalled MNOK 151 (MNOK 54). All business areas showed an improvement compared to the same period last year.
In 2000, ProSafe achieved a profit after taxes of MNOK 386 (MNOK 23). Cash flow amounted to MNOK 586 (MNOK 293), and earnings and cash flow per share equalled NOK 14.60 (NOK 0.88) and NOK 22.16 (NOK 11.27), respectively. Adjusted for a currency loss of MNOK 99 on the company’s long term USD loans, earnings per share equalled NOK 18.34 (NOK 2.93).
In the 4th quarter, profit after taxes totalled MNOK 157 (MNOK 17). Cash flow equalled MNOK 162 (MNOK 62), and earnings and cash flow per share equalled NOK 5.92 (NOK 0.67) and NOK 6.11 (NOK 2.39), respectively. Adjusted for a currency gain of MNOK 55 on the company’s long term USD loans, earnings per share equalled NOK 3.85 (NOK 1.69).
Business Areas
In 2000, Offshore Support Services achieved an operating profit of MNOK 554 (MNOK 156). Included in the operating profit is a gain of MNOK 20 from the sale of the Discoverer I drillship to Seatankers Management. The utilisation ratio for the fleet was 84% in 2000, an increase of 23 percentage points over 1999. The high utilisation ratio and the expansion of the rig fleet produced improved profits within this business area.
Operating profit for the 4th quarter amounted to MNOK 110 (MNOK 52). The utilisation ratio was 77%, an increase of 12 percentage points over the same period last year.
In 2000, Offshore Drilling & Related Services achieved an operating profit of MNOK 78 (MNOK 78). During 2000, it has been decided to transfer the operation in Baku, Azerbaijan from Other Business to this business area. The operating profit from the Baku operation amounted to MNOK 12 (MNOK 0) in 2000 and is attributable to one particularly well performed project. In 2000, the drilling operations and technical services in Norway reached an operating profit of MNOK 66 (MNOK 78). The decrease compared to 1999 is due to the shortfall of the Valhall operation.
Operating profit in the 4th quarter amounted to MNOK 41 (MNOK 16), out of which MNOK 16 related to a project in Baku. Drilling operations and technical services had an operating profit of MNOK 25 (MNOK 16). The increase over the same period last year is attributable to Rubicon which was on contract during the entire 4th quarter 2000.
In 2000, Other Business showed an operating profit of MNOK 3 (-MNOK 6). The year has been characterised by a moderate activity level. Order backlog per year-end was MNOK 136.
Prospects
The board expects that the acquisition of Nortrans will strengthen ProSafe’s ambition of being a leading provider of products and services within selected niches of the global oil and gas industry. Nortrans is a leading provider within segments of the floating production market. The board is of the opinion that this is a market which will grow significantly in the years ahead. In the longer term, the board expects that considerable commercial synergies can be gained through Nortrans’ presence in all important oil regions world wide, in addition to the North Sea. Specifically, parts of ProSafe’s fleet can be applied to special projects for floating production. Further, the geographical market for ProSafe’s ambition within subsea well intervention will be expanded. A combination of Nortrans’ marine competence, production skills, engineering resources and market presence with ProSafe’s skills within marine operations, drilling, its well and technical competence, as well as the company’s strong capital structure, will enable the combined company to develop further on the back of the strong growth in the global oil and gas industry which is expected in the years ahead.
ProSafe is listed on the Oslo Stock Exchange with ticker code PRS.
Oslo 8 February 2001
For 4th quarter report with tables, follow the enclosed link:
