STAVANGER, Norway, Oct. 21, 2003 (PRIMEZONE) -- Smedvig (NYSE:SMVa) (NYSE:SMVb) reported today consolidated operating profit for the third quarter of NOK 176 million, as compared to NOK 145 million in the previous quarter. The improvement reflects increased dayrates and utilization of the drilling units.
Net financial items for the third quarter was an income of NOK 9 million, as compared to an expense of NOK 4 million in the preceding quarter. The improvement was mainly due to lower interest expenses. Net income for the third quarter was NOK 137 million, as compared to a net loss of NOK 489 million in the second quarter.
Operating profit from the Mobile Units amounted to NOK 69 million, as compared to an operating profit of NOK 49 million in the previous quarter. The increase was mainly attributable to higher utilization and dayrates for West Navigator and West Alpha. The utilization rate for the mobile units during the quarter averaged 100 percent, as compared to 92 percent in the preceding quarter.
Operating profit from the Tender Rigs amounted to NOK 91 million, as compared to NOK 76 million in the previous quarter. The increase reflects higher utilization for the tender rig units averaging 100 percent, as compared to 98 percent in the previous quarter.
Operating profit from Platform Drilling amounted to NOK 22 million, as compared to NOK 24 million in the second quarter. The moderate decrease was mainly due to some lower activity level within 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
A telephone conference regarding Smedvig's third quarter results will be arranged Tuesday October 21, at 11:00 a.m. (NY time), 5:00 p.m. (Norwegian time). Call-in numbers are: International: +1 706 679 7077 U.S.: 800 938 1019. Replays are available from October 21, 03:00 p.m. (NY time) until October 28, 03:00 p.m. For replay, please dial International: +1 706 645 9291, U.S.: 800 642 1687, access code 3276669.
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 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 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.
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 http://hugin.info/141/R/921428/124330.xls