10/31/2014

REPORT FOR THIRD QUARTER 2014

Highlights 3Q 2014:

  • Operating revenues were NOK 3 411 million (NOK 2 648 million)
  • Operating result before depreciation (EBITDA) was NOK 1 213 million (NOK 1 155 million)
  • Operating result (EBIT) was NOK 190 million (NOK 597 million)
  • Net result after tax was NOK -38 million (NOK 494 million)
  • Earnings per share were NOK 0.8 (NOK 6.5)

Financial information

The Group of companies´ operating revenues amounted to NOK 3 411 million (NOK 2 648 million) in the quarter. Offshore Drilling had operating revenues of NOK 2 094 million (NOK 1 838 million), Renewable Energy NOK 115 million (NOK 132 million), Shipping / Offshore wind NOK 429 million (NOK 266 million), Cruise NOK 474 million (NOK 395 million) and Other investments NOK 300 million (NOK 14 million).

NHST Media Group has from May 2014 been fully consolidated in Bonheur ASA, following the increase in ownership from 35.6% to 54.0%. The segment Other investments obtained increased revenues of NOK 286 million, which is related to revenues of NHST Media Group in the third quarter. For further information see note 8. Total revenues have been positively impacted by higher USD, GBP and EUR against NOK compared with the corresponding quarter last year. USD and EUR was on average approximately 4% higher in 3 quarter 2014 compared to 2 quarter 2013, while GBP was 12% higher.

Operating result before depreciation (EBITDA) in the quarter was NOK 1 213 million (NOK 1 155 million).

The increase of NOK 58 million from corresponding period last year is mainly due to higher EBITDA within Shipping / Offshore wind which achieved EBITDA in the quarter of NOK 167 million (NOK 103 million),within Cruise which achieved NOK 102 million (NOK 64 million) and Offshore Drilling which achieved NOK 940 million (NOK 928 million). The increase was partly offset by decreased EBITDA within Renewable energy of NOK 52 million (NOK 90 million) and within Other investments which had an EBITDA of NOK - 48 million in the quarter (NOK - 30 million), including NHST of NOK - 7 million.

Depreciation and impairment in the quarter was NOK 1 023 million (NOK 558 million), of which NOK 271 million was impairment of fixed assets within Offshore drilling.

Operating result (EBIT) was NOK 190 million (NOK 597 million).

Net financial items were NOK -170 million (NOK - 88 million). Net interest expenses in the quarter were NOK 151 million (NOK 81 million) and net currency gain was NOK 95 million (NOK -32 million). Net unrealized loss related to fair value adjustment of financial instruments was NOK -15 million (gain of NOK 50 million). Dividend from Koksa Eiendom AS of NOK 44 million was received during the quarter. Other financial expenses in the quarter, inclusive refinancing costs within Offshore drilling, amounted to NOK 143 million (NOK 25 million).

Net result in the quarter was NOK - 38 million (NOK 494 million), of which NOK 27 million are attributable to shareholders of the parent (NOK 209 million). The non-controlling interests´ share of net result in the quarter was NOK - 65 million (NOK 285 million).

Revenues year to date were NOK 8 882 million (NOK 7 517 million) while EBITDA year to date were NOK 2 933 million (NOK 3 133 million). Operating result (EBIT) year to date was NOK 693 million
(NOK 1 608 million). Net financial items were NOK - 415 million (NOK 38 million) and net result after estimated tax from continuing operations was NOK 224 million (NOK 1 588 million).   Net result after tax and discontinued operations was NOK 224 million (NOK 1 363 million), of which NOK 138 million (NOK 561 million) are attributable to shareholders of the parent.

Other information

Capital and financing

During the first nine months, the investments were mainly related to Offshore Drilling (FOE) and Renewable Energy (FOR).

Within FOE, capital expenditures amounted to NOK 5 229 million, related to delivery of new build, class renewal surveys and general upgrades.

FOR had capital expenditures of NOK 562 million, mainly related to the construction of Mid Hill wind farm, and pre-construction activities on windfarms in Norway, Sweden and Scotland.

In total the Group of companies’ investments in Property, plant and equipment amounted to NOK 5 845 million year to date 2014.

The Group of companies has increased its shareholding in NHST Media Group by purchasing 236 988 additional shares; a total investment of NOK 91 million.

Gross interest bearing debt of the Group of companies as per end of 3 quarter was NOK 18 453 million, an increase of NOK 5 912 million since year end 2013. Cash and cash equivalents amounted to NOK 6 741 million, an increase of NOK 1 362 million since year end 2013. Net interest bearing debt of the Group of companies per 3 quarter 2014 was NOK 11 712 million, an increase of NOK 4 550 million since year end 2013. The equity to asset ratio was 34% compared with 40% at year-end 2013.