REPORT FOR 4 QUARTER 2014 AND PRELIMINARY RESULT 2014

Highlights 4Q 2014:

• Operating revenues were NOK 3 466 million (NOK 2 740 million)

• Operating result before depreciation (EBITDA) was NOK 1 389 million (NOK 880 million)

• Operating result (EBIT) was NOK 610 million (NOK -51 million)

• Net result after tax was NOK 381 million (NOK -94 million)

• Earnings per share were NOK 2.20 (NOK -4.70)

• Proposed dividend for 2014:
  
   Bonheur ASA:      NOK 2.50 per share

Financial information

The Group of companies´ operating revenues amounted to NOK 3 466 million (NOK 2 740 million) in the quarter. Offshore Drilling had operating revenues of NOK 2 050 million (NOK 1 805 million), Renewable Energy NOK 301 million (NOK 297 million), Shipping / Offshore wind NOK 392 million (NOK 299 million), Cruise NOK 387 million (NOK 349 million) and Other investments NOK 336 million of which NHST Media Group comprise NOK 327 million (0 million).

NHST Media Group has from May 2014 been fully consolidated in Bonheur ASA, following the increase in ownership from 35.6% to 54.0%. Revenues within the segment Other investments increased by NOK 345 million compared with 4 quarter 2013, due to inclusion of revenues of NHST Media Group in 2014. For further information see note 8.

Total revenues have been positively impacted by higher USD, GBP and EUR against NOK compared with the corresponding quarter last year. USD was on average approximately 13.5 % higher in 4 quarter 2014 compared to 4 quarter 2013, while EUR and GBP was 4% and 11% higher, respectively.

Operating result before depreciation (EBITDA) in the quarter was NOK 1 389 million (NOK 880 million).

The increase of NOK 510 million from corresponding period last year is mainly due to higher EBITDA within Offshore drilling which achieved EBITDA in the quarter of NOK 1 084 million (704 million). In addition Shipping / Offshore wind achieved EBITDA of NOK 77 million (NOK - 3 million), Cruise NOK 38 million (NOK - 9 million) and Other investments which had an EBITDA of NOK - 18 million in the quarter (NOK - 38 million), including NHST of NOK 9 million. The increase was partly offset by decreased EBITDA within Renewable energy of NOK 209 million (NOK 225 million).

Depreciation in the quarter was NOK 779 million (NOK 931 million). Offshore drilling had higher depreciation of NOK 231 million, mainly due to Bolette Dolphin which was delivered in February 2014. The comparable figure for 2013 includes NOK 411 million as impairment of fixed assets within Cruise.

Operating result (EBIT) was NOK 610 million (NOK - 51 million).

Net financial items in the quarter were NOK - 55 million (NOK - 19 million). Net interest expenses were NOK 189 million (NOK 104 million) and net currency gain was NOK 383 million (NOK - 22 million). Net unrealized loss related to fair value adjustment of financial instruments was NOK 165 million (gain of NOK 52 million), of which Offshore drilling, Renewable energy and Cruise had net losses related to financial instruments of NOK 57 million, NOK 85 million and NOK 23 million, respectively. In the quarter the investments in Koksa Eiendom AS (Other investments) and Codling joint venture (Renewable energy) was written down by NOK 16 million and NOK 37 million, respectively. Other financial items in the quarter amounted to NOK - 32 million (NOK 73 million). The corresponding figure last year was influenced by the revaluation of Windy Standard II wind farm of NOK 99 million.

Net result in the quarter was NOK 381 million (NOK - 94 million), of which NOK 70 million are attributable to shareholders of the parent (NOK - 152 million). The non-controlling interests´ share of net result in the quarter was NOK 311 million (NOK 58 million).

For the full year 2014, revenues were NOK 12 347 million (NOK 10 257 million) while EBITDA was
NOK 4 322 million (NOK 4 012 million). Operating result (EBIT) was NOK 1 304 million
(NOK 1 557 million). Net financial items were NOK - 470 million (NOK 19 million) and net result after estimated tax from continuing operations was NOK 605 million (NOK 1 474 million).   Profit for the period was NOK 605 million (NOK 1 269 million), of which NOK 209 million (NOK 408 million) are attributable to shareholders of the parent.

Other information

Capital and financing

During the year, the investments were mainly related to Offshore Drilling (FOE) and Renewable Energy (FOR).

Within FOE, capital expenditures amounted to NOK 6 994 million, related to delivery of new build, class renewal surveys and general upgrades.

FOR had capital expenditures of NOK 912 million, mainly related to the construction of Mid Hill wind farm in Scotland and Fäbodliden wind farm in Sweden. FOR also had pre-construction activities on windfarms in Norway, Sweden and Scotland.

In total the Group of companies’ investments in Property, plant and equipment amounted to NOK 8 109 million during 2014.

The Group of companies increased its shareholding in NHST Media Group in 2014 by purchasing 236 988 additional shares; a total investment of NOK 91 million.

Gross interest bearing debt of the Group of companies as per end of 2014 was NOK 18 750 million, an increase of NOK 6 208 million since year end 2013. Cash and cash equivalents amounted to NOK 5 674 million, an increase of NOK 295 million since year end 2013. Net interest bearing debt of the Group of companies per year end 2014 was NOK 13 076 million, an increase of NOK 5 914 million since year end 2013. The equity to asset ratio was 35% compared with 40% at year-end 2013. 

Dividend / Annual General Meeting in Bonheur ASA

With regard to the Annual General Meeting in 2015, the board will propose a dividend of NOK 2.50 per share.

The Annual General Meeting is scheduled for Thursday 28 May 2015.

Subsequent event:

On 16 February 2015 the Group of Companies received a draft ruling from the tax authorities (Central taxation office) regarding the subsidiary MOPU AS related to a change in the taxable income for the years 2005-2006. The tax authorities argue that an intra-group merger as part of a reorganization in 2005 was tax-motivated and the payable tax should be increased by NOK 102 million. The Group of companies has not yet fully reviewed the draft and will consider challenging the ruling. Potential accounting effects will be considered in the final accounts for 2014.