REPORT FOR THE SECOND QUARTER 2013 AND THE FIRST HALF YEAR 2013
Highlights 2Q 13:
- Net result after tax and discontinued operations was NOK 166 million (NOK 126 million)
- Earnings per share were NOK 4.9 (NOK 3.7)
- Shareholders of Fred. Olsen Production ASA have received a cash offer from Yinson Production Ltd
Financial information
The operating result (EBIT), which mainly reflects the holding company costs, was negative NOK 9 million (negative NOK 7 million) in the quarter. All significant share holdings have been consolidated as associates. Consequently, the parent company is a pure holding company.
Following the announced offer from Yinson Production Ltd., to acquire all shares of Fred. Olsen Production ASA the business segment Floating Production has per 30th June been reclassified as an investment held for sale in the consolidated financial position, and accordingly presented as discontinued operations in the consolidated income statement. Corresponding figures for last year periods have been restated.
Net result from associates accounted for using the equity method, was NOK 278 million (NOK151 million) in the quarter. The net result comprises share of net results from Fred. Olsen Energy ASA with subsidiaries (FOE) of NOK 144 million (NOK 171 million), from Fred. Olsen Renewables AS with subsidiaries (FOR) of NOK 26 million (negative NOK 27 million) from First Olsen Ltd (Shipping /Offshore wind) NOK 86 million (negative NOK 1 million) and the cross ownership contribution from Bonheur ASA of NOK 33 million (NOK 21 million). The share of net result from the cruise activities was negative NOK 21 million (negative NOK 18 million).
Net financial items in the quarter were positive NOK 19 million (negative NOK 19 million). The improvement compared to the same quarter last year is mainly due to received dividend of NOK 35 million (IT Fornebu Properties AS) and currency gains of NOK 10 million.
Net result before tax (EBT) in the quarter was NOK 288 million (NOK 125 million). Net result from continued operations in the quarter was NOK 289 million (NOK 128 million).Net result from discontinued operations was negative NOK 122 million (negative NOK 3 million) and net result was NOK 166 million (NOK 126 million).
EBIT year to date were negative NOK 20 million (negative NOK 20 million). Net result from associates accounted for using the equity method was NOK 375 million (NOK 244 million) year to date. Net financial items year to date were negative NOK 12 million (negative NOK 43 million), net result from continued operations year to date was NOK 343 million (NOK 160 million), net result from discontinued operations were negative 112 million (negative 1 million) and net result year to date was NOK 231 million (NOK 159 million).
The Company’s share of the result from discontinued operations was negative NOK 112 million inclusive a loss of NOK 130 million due to the difference between the cash offer and the booked value of the shares. For further details see note 6.
Other information
Risks
The main risk items which may affect the results negatively for the remainder of the year comprise adverse market, energy prices, developments, operational issues related to income, operating costs and HSE incidents within the various business segments, negative foreign exchange developments and increased interest rates.
Cash offer for Fred. Olsen Production ASA (FOP)
A cash consideration of NOK 9.40 per share has been offered for the shares of FOP, implying a total consideration for all shares of approximately NOK 996 million also taking into account that the shares of the Company as from 30 May 2013 have been trading ex a dividend of NOK 0.50 per share. The Offer represents a premium of 5.1% over the closing price of the shares on 7 June 2013 and a premium of 43.2% over the dividend adjusted closing price of the share the day before the announcement of the strategic review process by the Board of Directors in FOP.
Annual General Meeting / Dividend
At the Annual General Meeting in Ganger Rolf ASA on 30th May 2013, the proposed dividend payment of NOK 8.40 per share was approved. The dividend was paid on 25th June, amounting to NOK 284,4 million in total.
Subsequent events
In July 2013 an associate; MOPU AS,indirectly owned 50% of Ganger Rolf ASA, was notified by the tax authorities of a possible change in the taxable income for 2005 – 2006. The tax authorities indicated a potential ordinary tax claim of totally NOK 158 million related to the reorganization of the company in 2005. The tax claim will be challenged.