Good period for BW Offshore

Gracias Pemex.....

NORWAY: BW Offshore has seen total revenue jump in a year-on-year second quarter comparison. Figures released today showed the sum for this latest financial period was US$255.0 million, up from US$204.2 million in the same months of 2006.

Earnings before interest, tax, depreciation and amortization (EBITDA) was up eight fold, coming in at US$41.7 million from US$5.3 million.

A spokesman said, "The increase in EBITDA and revenue is primarily attributable to increased activity arising from the acquisition of APL [Advanced Production & Loading Plc], the finalization of the conversion of Yuum K'ak'naab, and share of profit of associates."

Capital expenditures related to Yuum K'ak'naab in the second quarter were US$150.7 million, down from US$176.4 million, bringing the conversion project to an end. First oil reached the FPSO on June 18, 2007 and the acceptance certificate was signed with PEMEX on June 30, 2007. Net profit from the conversion project recognised in the income statement in the second quarter amounted to US$6.1 million.

Share of profit of associates amounting to US$5.2 million related to the Group's investments in Prosafe SE, APL until May 8, 2007, and Nexus Floating Production Limited (Nexus). As of June 30, 2007, the group owned 24.33 percent of the shares in Prosafe and 40.18 percent of the shares in Nexus.

Operating expenses were US$229.0 million, an increase from US$198.9 million. The increase in operating expenses is attributable to the increased activity from the acquisition of APL, additional office staff and provision for doubtful debt of US$8.3 million recorded in the second quarter, the BW spokesman said.