02/21/2017

REPORT FOR THE FOURTH QUARTER 2016 AND PRELIMINARY RESULT FOR 2016

Financial and operating highlights 4Q 2016 (4Q 2015 in brackets): 

      • Operating revenues were NOK 2 630 million (NOK 3 613 million)
      • EBITDA (operating result before depreciation, impairment and finance) was NOK 1 065 million (NOK 1 419 million)
      • Impairments were NOK 213 million (NOK 1 376 million
      • EBIT (operating result) was NOK 92 million (NOK - 922 million
      • Net finance was NOK -14 million (NOK -302 million).
      • Net result after tax was NOK 31 million (NOK -1 098 million

Post quarter event:

      • Proposed dividend for 2016: NOK 2.00 per share

Offshore drilling

  • EBITDA NOK 810 mill. (NOK 1 227 mill.)
  • Challenging markets
  • 3 units in operation
  • Waiver of loan covenants

Renewable energy

  • EBITDA NOK 212 mill. (NOK 261 mill.)
  • Like-for-like generation down 18%
  • Including Fäboliden and Crystal Rig III, down 11%
  • Crystal Rig III commenced production
  • Higher prices throughout all markets
  • 20% weakening of GBP/NOK

Shipping / Offshore wind

  • EBITDA NOK 35 mill. (NOK -35 mill.)
  • Utilization for installation vessels 64% (39%)
  • Impairment of CTVs NOK 103 mill.
  • Contract pipeline into 2019 covered 42% by firm contracts and 14% options

Cruise

  • EBITDA NOK 18 mill. (NOK -10 mill.)
  • 20% weakening of GBP / NOK
  • 18% weakening of GBP/USD
  • Strong bookings
  • Passenger days up 6% 
  • Net ticket income per diems up 10%

Financial information

The Group‘s operating revenues amounted to NOK 2 630 million (NOK 3 613 million). Offshore drilling had operating revenues of NOK 1 310 million (NOK 2 262 million), Renewable energy NOK 306 million (NOK 372 million), Shipping / Offshore wind NOK 264 million (NOK 219 million) and Cruise NOK 401 million (NOK 433 million). Within Other investments NHST Media Group had operating revenues of NOK 337 million (NOK 332 million).

EBITDA (operating result before depreciation, impairment, result from associates, financial items and tax) was NOK 1 065 million (NOK 1 419 million). Offshore drilling achieved EBITDA of NOK 810 million (NOK 1 227 million), Renewable energy NOK 212 million (NOK 261 million), Shipping/Offshore wind NOK 35 million (NOK -35 million), while Cruise achieved EBITDA of NOK 18 million (NOK -10 million). Within Other investments EBITDA were NOK -10 million (NOK -24 million).

Depreciation in the quarter was NOK 760 million (NOK 966 million).

Impairments were NOK 213 million (NOK 1 376 million) of which offshore drilling units amounted to NOK 90 million (NOK 1 375 million), Crew Transfer Vessels within Shipping/Offshore Wind NOK 103 million (0) and write down of development projects within Renewable energy of NOK 20 million (0).

EBIT (operating result after depreciation and impairment before result from associates, financial items and tax) was NOK 92 million (NOK -922 million).

Net financial items in the quarter were NOK - 13 million (NOK - 302 million). Net interest expenses were NOK 131 million (NOK 192 million) and net currency gain amounted to NOK 73 million (NOK 62 million) Net unrealized gains related to fair value adjustment of financial instruments were NOK 62 million
(NOK - 33 million). Dividends received in the quarter was 35 million (NOK 1 million). Other financial items (inclusive impairment of investments) amounted to NOK - 53 million (NOK - 140 million).

Net result in the quarter was NOK 31 million (NOK -1 098 million), of which NOK 11 million are attributable to the shareholders of the parent company (NOK -573 million). The non-controlling interests´ share of net result in the quarter was thus NOK 20 million (NOK -525 million).

Revenues in 2016 were NOK 12 415 million (NOK 14 640 million), EBITDA was NOK 5 072 million (NOK 6 243 million) and EBIT was NOK - 294 million (NOK – 2 361 million). EBIT was heavily influenced by impairments of total NOK 2 037 million whereof offshore units were impaired with NOK 1 914 million (NOK 4 903 million). Net financial items were NOK - 410 million (NOK - 535 million). Net result after estimated tax was NOK -1 021 million (NOK – 2 804 million), of which NOK - 499 million (NOK - 1 261 million) are attributable to the shareholders of the parent company.

Annual General meeting / Dividend

With regard to the Annual General Meeting in 2017, the board will propose a dividend of NOK 2.00 per share. For the company NOK 85.1 million.

The annual general meeting is scheduled for Wednesday 24 May 2017.