REPORT FOR THIRD QUARTER 2015
The unaudited Group accounts for 3 quarter 2015 comprise Ganger Rolf ASA and its subsidiaries (“The Group of companies”) and the Group of companies´ ownership of associates.
Comparable figures for the same period in 2014 in brackets.
Operating result (EBIT), which mainly reflects the holding company expenses, was NOK - 21 million
(NOK - 16 million) in the quarter. All significant share holdings have been consolidated as associates. Consequently, the parent company is a pure holding company.
Results have been impacted positively by higher USD, GBP and EUR against NOK compared with the corresponding quarter last year. USD was on average approximately 32% higher in 3 quarter 2015 compared to 3 quarter 2014 while GBP and EUR was 22% and 10% higher, respectively.
Net result from associates accounted for using the equity method, was NOK 54 million (NOK 7 million) in the quarter. Net result comprises share of net result from Fred. Olsen Energy ASA with subsidiaries (FOE) of NOK 45 million (NOK - 13 million), from Fred. Olsen Renewables AS with subsidiaries (FOR) of NOK - 27 million (NOK - 43 million), from Fred. Olsen Ocean Ltd. (FOO) of NOK - 28 million (NOK 39 million), from the cruise segment NOK 62 million (NOK 21 million) and the cross ownership effect from Bonheur ASA of NOK 5 million (NOK 0 million). The share of net result in associates in the 3 quarter includes Ganger Rolf ASA’s share of impairment of assets in FOE of NOK 81 million.
Net financial items in the quarter were NOK - 9 million (NOK - 5 million). Compared to the corresponding quarter last year interest expenses are lower and revaluation of financial instruments was - 2 million in 3 quarter 2015 (NOK 0 million). Dividends of NOK 0.4 million was received in the quarter (NOK 22 million).
Net result in the quarter was NOK 24 million (NOK - 14 million).
EBITDA year to date were NOK - 48 million (NOK - 49 million). Operating result (EBIT) year to date was NOK - 50 million (NOK - 51 million). Share of result from associates were NOK - 464 million (NOK 109 million), net financial items were NOK - 15 million (NOK - 27 million) and net result after estimated tax was NOK - 475 million (NOK 30 million).
Subsequent events
The following events are related to associates of Ganger Rolf ASA:
On 22 October, Bollsta Dolphin Pte. Ltd., subsidiary of Fred. Olsen Energy ASA, received a notice of arbitration from Hyundai Heavy Industries Co. Ltd. (HHI). HHI alleges that it is entitled to an additional payment of about MUSD 167 and additional time to complete and deliver Bollsta Dolphin. The claim is considered to be without merit; principally because the construction contract is a so called turn-key delivery for a pre-agreed price. The contract also contains a specific variation order regime dealing with any adjustments or modifications. The amount of variations are negligible.
The construction of the unit was substantially delayed and Bollsta Dolphin Ptl. Ltd therefore decided to exercise its contractual right to terminate the construction contract with HHI. In connection with this termination, Chevron North Sea Limited and Dolphin Drilling Ltd. in good faith agreed on amicable terms to terminate the drilling contract under which the newbuilding was supposed to operate.