STAVANGER, Norway, August 6, 2003 (PRIMEZONE) -- Smedvig (NYSE:SMVa) (NYSE:SMVb) reported today consolidated operating profit for the second quarter of NOK 145 million as compared to NOK 59 million in the previous quarter. The increase primarily reflects the increased utilization of the drilling units. Operating profit for the first half year was NOK 204 million as compared to NOK 313 million for the same period in 2002.
Net financial expenses for the second quarter was NOK 4 million as compared to net financial expenses of NOK 47 million in the preceding quarter. The decrease was mainly due to gain on currency forward contracts.
The accounts include an accrual of NOK 835 million related to the outcome of the ruling of Stavanger District Court in the Balder dispute. NOK 205 million in positive income taxes are mainly due to the Balder accrual.
Net loss for the second quarter was NOK 489 million as compared to net income of NOK 2 million in the first quarter. Net loss for the first half year was NOK 487 million.
Operating profit from the Mobile Units amounted to NOK 49 million as compared to an operating loss of NOK 17 million in previous quarter. The increase was mainly attributable to higher utilization for West Navigator and West Venture. The utilization rate for the mobile units during the quarter averaged approximately 92 percent as compared to 76 percent in the preceding quarter.
Operating profit from the Tender Rigs amounted to NOK 76 million as compared to NOK 57 million in the previous quarter. The increase reflects higher utilization of the tender rig fleet, averaging 98 percent as compared to 83 percent in the previous quarter.
Operating profit from Platform Drilling amounted to NOK 24 million as compared to NOK 20 million in first quarter. The increase was mainly due to higher contribution from well services.
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
This news release includes forward-looking statements. These forward-looking statements reflect current views with respect to future events and are, by their nature, subject to significant risks and uncertainties, because they relate to events and depend on circumstances that will occur in the future. Many factors could influence actual developments and performance and could cause them to differ materially from those described by these forward-looking statements. For a discussion of these factors please see "Risk Factors" in our Annual Report on Form 20-F for the year 2002 filed with the U.S. Securities and Exchange Commission and available on our website at www.smedvig.no.
A telephone conference regarding Smedvig's second quarter results will be arranged Wednesday August 6, at 11:30 a.m. (NY time), 5:30 p.m. (Norwegian time). Call-in numbers are: International: +1 706 679 7077 U.S.: 800 938 1019. Replays are available from August 6, 03:00 p.m. (NY time) until August 13, 11:59 p.m. For replay, please dial International: +1 706 645 9291, U.S.: 800 642 1687, access code 1758946.
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.
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