REPORT FOR THE THIRD QUARTER 2013

Highlights 3Q 13:

• Operating revenues were NOK 2 648 million (NOK 2 593 million)
• Operating result before depreciation (EBITDA) was NOK 1 155 million (NOK 1 117 million)
• Operating result (EBIT) was NOK 598 million (NOK 672 million)
• Net result after tax from continuing operations was NOK 494 million (NOK 446 million)
• Majority’s share of net result was NOK 209 million (NOK 137 million)
• Earnings per share from continuing operations were NOK 6.50 (NOK 4.20)

Post quarter:

• Transfer of shareholding in GenoMar AS

Financial information

As a consequence of Bonheur ASA holding more than 50% of the shares of Ganger Rolf ASA, Ganger Rolf ASA is fully consolidated for accounting purposes as a subsidiary of Bonheur ASA. As Bonheur ASA and Ganger Rolf ASA have a joint ownership (50% / 50%) of their major investments, the ownership structure entails full consolidation for accounting purposes of a number of companies. The main business segments comprise Offshore Drilling, Renewable Energy, Cruise, Shipping / Offshore wind and Other Investments.

Following the announced offering from Yinson Production Ltd. to acquire all shares of Fred. Olsen Production ASA the business segment Floating Production is reclassified as an investment held for sale in the consolidated financial position, and accordingly presented as discontinued operations in the consolidated income statement. Comparable figures for last year’s corresponding periods have been restated for the income statement

The Group of companies´ operating revenues amounted to NOK 2 648 million (NOK 2 593 million) in the quarter. The increase in revenues compared with the correspondingquarter last year is mainly related to higher income within the segments Renewable Energy and Shipping / Offshore wind, partly offset by lower income within Cruise and Offshore Drilling. Renewable Energy had operating revenues of NOK 132 million (NOK 89 million) and Shipping / Offshore wind NOK 266 million (NOK 132 million). Offshore Drilling generated revenues of NOK 1 838 million in the quarter (NOK 1 901 million) and Cruise had operating revenues of NOK 395 million (NOK 452 million).

Operating result before depreciation (EBITDA) in the quarter was NOK 1 155 million (NOK 1 117 million). The increase from last year of NOK 38 million is mainly due to higher EBITDA within Renewable Energy and Shipping / Offshore wind. Renewable Energy achieved EBITDA of NOK 90 million (NOK 57 million) and Shipping /Offshore wind NOK 103 million (negative NOK 14 million) in the quarter. EBITDA within Offshore Drilling were NOK 928 million (NOK 992 million) and EBITDA within the Cruise segment were NOK 64 million (NOK 111 million). Depreciation and impairment in the quarter were NOK  557 million (NOK 445 million) of which NOK 42 million were impairment of the tanker vessel Knock Clune.

Operating result (EBIT) in the quarter was NOK 598 million (NOK 672 million).

Net financial items were negative NOK 88 million (negative NOK 245 million). Net interest expenses in the quarter were NOK 81 million (NOK 112 million) and net currency loss was NOK 32 million (NOK 107 million). Net unrealized gain related to revaluation of financial instruments amounted to NOK 50 million (negative NOK 3 million).

Net result in the quarter was NOK 494 million (NOK 469 million), of which NOK 209 million relate to the majority interests (NOK 137 million). The minority interests´ share of net result in the quarter was NOK 285 million (NOK 332 million).

Revenues year to date were NOK 7 518 million (NOK 7 371 million) while EBITDA year to date were NOK 3 133 million (NOK 3 081 million). Operating result (EBIT) year to date was NOK 1 608 million
(NOK 1 731 million). Net financial items were positive NOK 38 million (negative NOK 487 million) and net result after tax from continuing operations was NOK 1 588 million (NOK 1 175 million).

Result from discontinued operations year to date was negative NOK 224 million inclusive a loss of NOK 275 million as the booked equity value of FOP was higher than the offered sales price for the shares. For further details see note 7. Net result was NOK 1 363 million (NOK 1 194 million), of which NOK 561 million (NOK 356 million) relate to the majority interests.

Other information

Capital and financing

During the first nine months of the year investments were mainly related to Offshore Drilling (FOE), Renewable Energy (FOR) and Fred. Olsen Windcarrier AS.

Within FOE, capital expenditures amounted to NOK 847 million, related to new builds, class renewal surveys and general upgrades.

Fred. Olsen Windcarrier had capital expenditures of NOK 226 million related to new builds.

FOR had capital expenditures of NOK 492 million, mainly related to the construction of Mid Hill and Rothes II wind farms.

In total the Group of companies’ investments, net of intra-group eliminations, amounted to NOK 1 592 million year to date.

Gross interest bearing debt of the Group of companies as per end of third quarter was NOK 12 962 million, an increase of NOK 480 million since year end 2012. Cash and cash equivalents amounted to NOK 5 098 million, an increase of NOK 1 071 million since year-end 2012. Net interest bearing debt of the Group of companies at the end of the September was NOK 7 864 million, a decrease of NOK 591 million since year end 2012. The equity to asset ratio was 40% at the end of the third quarter, which is unchanged from year-end 2012. 

Subsequent event

On 31st October 2013 an agreement has been entered into with Glastad Invest AS by which Bonheur ASA and Ganger Rolf ASA will transfer their shareholding interests (66.9 million shares) in GenoMar AS to Glastad Invest AS. Glastad Invest AS currently holds 10.4% of the shares in GenoMar AS.  Bonheur ASA’s and Ganger Rolf ASA’s combined investments in GenoMar since their first investment in early 2000 amount to approximately NOK 182 million, of which NOK 171 million already have been included as accumulated losses in the consolidated accounts.