REPORT FOR SECOND QUARTER 2015 AND THE FIRST HALF YEAR 2015

Highlights 2Q 2015:

• Operating revenues were NOK 3 918 million (NOK 2 771 million)

•  Operating result before depreciation (EBITDA) was NOK 1 884 million (NOK 845 million)

•  Impairment of drilling units of NOK 3 270 million

• Operating result (EBIT) was NOK - 2 316 million (NOK 158 million)

• Net result after tax was NOK -2 390 million (NOK 130 million)

• Earnings per share were NOK -31,1 (NOK 1.9)

• Sale of a 49% interest in a defined portfolio of UK wind farms with gross proceeds
  of GBP 246 million (NOK 3 040 million)

Financial information

Operating revenues have been impacted positively by higher USD, GBP and EUR against NOK compared with the corresponding quarter last year. USD was on average approximately 29% higher in 2 quarter 2015 compared to 2 quarter 2014 while GBP and EUR was 18% and 4% higher, respectively.  

The Group of companies´ operating revenues amounted to NOK 3 918 million (NOK 2 771 million) in the quarter. Approximately 51% of the increase in revenues are due to currency effects. Offshore Drilling had operating revenues of NOK 2 523 million (NOK 1 638 million), Renewable Energy NOK 234 million (NOK 116 million), Shipping / Offshore wind NOK 314 million (NOK 405 million), Cruise NOK 502 million (NOK 377 million) and Other investments NOK 346 million (NOK 235 million). The latter includes operating revenues in NHST Media Group of NOK 324 million (2 months in 2014: NOK 220 million).

Operating result before depreciation (EBITDA) in the quarter was NOK 1 884 million (NOK 845 million).

The increase compared to the corresponding period last year of NOK 1 039 million is mainly due to higher EBITDA within Offshore drilling which achieved EBITDA in the quarter of NOK 1 614 million (NOK 639 million). EBITDA within Renewable energy were NOK 134 million (NOK 68 million) and Cruise achieved EBITDA of NOK 66 million (NOK - 8 million). The increase in EBITDA within these segments was partly offset by lower EBITDA within Shipping / Offshore wind which were NOK 63 million (NOK 158 million). EBITDA within Other investments improved by NOK 17 million compared with the same quarter last year.

Depreciation and impairment in the quarter was NOK 4 200 million (NOK 687 million). The amount includes impairment of drilling units of NOK 3 270 million.

Operating result (EBIT) was NOK - 2 316 million (NOK 158 million).

Net financial items were NOK - 122 million (NOK - 73 million). Net interest expenses in the quarter were NOK 164 million (NOK 147 million) and net currency loss was NOK 103 million (gain NOK 95 million). Net unrealized gain related to fair value adjustment of financial instruments was NOK 163 million (loss of NOK 10 million). In the quarter dividends of NOK 11 million were received (NOK 0 million).

Net result in the quarter was NOK - 2 390 million (NOK 130 million), of which NOK - 1005 million are attributable to the shareholders of the parent company (NOK 63 million). The non-controlling interests´ share of net result in the quarter was NOK - 1 385 million (NOK 67 million).

Revenues year to date were NOK 7 625 million (NOK 5 471 million) while EBITDA year to date were NOK 3 519 million (NOK 1 720 million). Operating result (EBIT) year to date was NOK - 1 592 million
(NOK 504 million). Net financial items were NOK - 185 million (NOK - 245 million) and net result after estimated tax was NOK - 1 776 million (NOK 262 million), of which NOK -722 million (NOK 112 million) are attributable to the shareholders of the parent company.

Other information

Capital and financing

During the first half 2015 investments were mainly related to Offshore Drilling (FOE) and Renewable Energy (FOR).

Within FOE, capital expenditures amounted to NOK 2 369 million, relating to class renewal surveys and general upgrades.

FOR had capital expenditures of NOK 155 million, mainly related to the construction of the Fäbodliden wind farm, and pre-construction activities on windfarms in Norway, Sweden and Scotland.

Gross interest bearing debt of the Group of companies as per end of 2 quarter was NOK 20 670 million, an increase of NOK 1 920 million since year end 2014. Cash and cash equivalents amounted to NOK 8 952 million, an increase of NOK 3 279 million since year end 2014. Net interest bearing debt of the Group of companies per 2 quarter 2015 was NOK 11 718 million, a decrease of NOK 1 359 million since year end 2014. The equity to asset ratio was 34% compared with 35% at year-end 2014. 

Dividend / Annual General Meeting in Bonheur ASA

At the Annual General Meeting in Bonheur ASA on 28 May 2015, the proposed dividend payment of NOK 2.50 per share was approved. The dividend was paid on 16 June, amounting to NOK 102.0 million in total.