• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Smedvig Reports Increased Operating Profit for Second Quarter 2004

Posted on: Tuesday, 10 August 2004, 06:00 CDT

STAVANGER, Norway, Aug. 10 /PRNewswire-FirstCall/ -- Smedvig reported today consolidated operating profit for the second quarter of NOK 129 million as compared to NOK 61 million in the previous quarter. The increase primarily reflects the increased utilization of the drilling units. Operating profit for the first half year was NOK 190 million as compared to NOK 204 million for the same period in 2003. This was due to somewhat lower contribution from the tender rigs. Net income for the second quarter was NOK 112 million as compared to net income of NOK 11 million in the first quarter. Net income for the first half year was NOK 123 million.

Operating profit from the Mobile Units amounted to NOK 49 million as compared to an operating loss of NOK 11 million in the previous quarter. The improvement was mainly attributable to higher utilization for West Navigator. The utilization rate for the mobile units during the quarter averaged approximately 93 percent as compared to 74 percent in the preceding quarter.

Operating profit from the Tender Rigs amounted to NOK 65 million as compared to NOK 45 million in the previous quarter. The increase reflects commencement of operations for T-8 in West Africa. The utilization rate for the tender rigs during the quarter averaged approximately 93 percent as compared to 87 percent in the previous quarter.

Operating profit from Well Services amounted to NOK 15 million as compared to NOK 27 million in first quarter. The decrease was mainly due to reduced drilling activity on the Statfjord platforms as well as the Ula/Valhall platforms.

Analyst Contact:

Jim Datland, Investor Relations Manager +47 51 50 99 19

Media Contact:

Alf C Thorkildsen, Chief Financial Officer +47 51 50 99 19

This news release includes forward-looking statements. These forward- looking statements reflect current views with respect to future events and are, by their nature, subject to significant risks and uncertainties, because they relate to events and depend on circumstances that will occur in the future. Many factors could influence actual developments and performance and could cause them to differ materially from those described by these forward- looking statements. For a discussion of these factors please see "Risk Factors" in our Annual Report on Form 20-F for the year 2003 filed with the U.S. Securities and Exchange Commission and available on our website at http://www.smedvig.com/.

A telephone conference regarding Smedvig's second quarter results will be arranged Tuesday August 10, at 10:00 a.m. (NY time), 4:00 p.m. (Norwegian time). Call-in numbers are: International: +1 706 634 1387 U.S.: 800 374 0724. Replays are available from August 10 12:15 p.m. (NY time) until August 17, 11:55 p.m. For replay, please dial International: +1 706 645 9291, U.S.: 800 642 1687, access code 8986361.

Smedvig asa is an offshore drilling contractor headquartered in Stavanger, Norway. The company provides drilling and well services in the North Atlantic and Southeast Asia. Smedvig's main activities are divided into mobile units, tender rigs and well services. Smedvig has a fleet of three modern drilling rigs, one drillship and eleven tender rigs and has one tender rig under construction. The company holds contracts for production drilling, engineering, well services and maintenance on fixed installations.

Smedvig asa

P.O. Box 110, 4001 Stavanger

Phone: +47 51 50 99 00

Fax: +47 51 50 96 88

Web site: http://www.smedvig.com/

E-mail: smedvig@smedvig.no

http://hugin.info/141/R/955208/136520.xls

Smedvig asa

CONTACT: Analyst - Jim Datland, Investor Relations Manager,+47-51-50-99-19; Media - Alf C Thorkildsen, Chief Financial Officer,+47-51-50-99-19, both of Smedvig asa

Web site: http://www.smedvig.com/

More News in this Category