Concerning media reports on order backlog and financing
(Hareid - 11 September 2009): With reference to reports in the media concerning two large orders placed earlier this year, ODIM wishes to make the following comments.
In connection with the publication of the contract from Havyard on 10 June concerning the delivery of a complete ODIM AHTS system, it was made expressly clear that this order was conditional on financing and final board approval. ODIM has made no secret of the fact that this contract is included in its order backlog subject to these conditions. Most recently in connection with the presentation of its results for the second quarter of 2009, the company stated explicitly that these reservations remain in place. With regard to the agreement announced on 27 March concerning the delivery of handling solutions for well servicing, it was also made expressly clear both in the headline and in the body of the text that this was a letter of intent. ODIM has communicated clearly and explicitly that this letter of intent was included in the order backlog both when presenting its results for the first quarter of 2009 and on subsequent occasions. The company specified most recently in its report for the second quarter of 2009 that both these agreements involved a risk since they were conditional on financing. In comments on the letter of intent of 27 March, it was even stated that the risk had increased. On 18 August, the stock exchange announcement on the cancellation of this letter of intent unfortunately made it clear to all that ODIM’s subjective risk assessment had been correct. Both the above-mentioned agreements were of such importance that ODIM was never in any doubt that they should be reported to the stock exchange. The company wished to ensure that all market players had the same information and thereby prevent rumour and speculation. In view of the above, ODIM accordingly rejects the presentation in the media. The company believes it is wrong to claim that it has exaggerated its order backlog, deceived the stock market and bluffed the market with fake orders. Since the contract with Havyard was announced on 10 June, everyone concerned has worked to secure financing for the project. It should come as no surprise to anyone that financing is a demanding business in today’s market, and ODIM has never made a secret of the fact that the same applies to this project. The company has also its very great faith in the concept clear, and the active efforts being made by ODIM to secure the most favourable possible financing for the project are entirely natural. This was also explained in its report for the second quarter of 2009. Several financing solutions have been studied, but nothing has been decided so far. It is accordingly too early for ODIM to communicate information related to the financing over and above the details already made public. ODIM will notify the stock market as soon as new information becomes available.