Aker Floating Production reports first quarter revenues of USD 33 million and EBITDA of USD 26 million (unchanged and up 8%, respectively, versus first quarter 2010). Operating profit in the quarter of USD 9 million represents growth of 12% over the same quarter last year.
The group made a net loss of USD 9 million for the quarter compared to a profit of USD 1 million in the same period last year. The main driver for the adverse performance was the strengthening of the NOK over the dollar impacting net financial items.
Operational review
The FPSO Dhirubhai-1 continues to show excellent safety records and has achieved an actual uptime for the quarter of 99,8%. This level of uptime performance gives a 5% contractual bonus payment on top of full day rate for the quarter.
Revenue in the first quarter is consistent with the same period last year, whilst EBITDA has increased 8% to USD 26 million. This increased profitability is mainly related to the timing of maintenance expenses deferred to later in the year. Operating profit for the first quarter of USD 9 million is after ordinary depreciation. Net financial items of USD 18 million negative include over USD 7 million of adverse currency movements and over USD 10 million in interest expenses and charges, of which USD 7 million relates to loans from Aker ASA.
Market considerations
The FPSO Industry is likely to head into its most active period since 2005 and 2006. The company is experiencing high oil prices and large numbers of new drilling rigs being ordered.
The company expects that new entries into the business based on speculative builds are unlikely to appear, and there is ongoing consolidation in the business, both of which are limiting the number of FPSO contractors.
Aker Floating Production has a positive outlook on the FPSO market developments and expects the market to further pick up into 2013.
Aker Floating Production is positioned to grow in this market, since the company continues to prove industry leading safety levels and FPSO operational regularity. In addition, Aker Floating Production owns the high quality sister of the tanker that was converted into FPSO Dhirubhai-1. Conversion of such a sister vessel reduces both risk and cost.
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Source:Aker Floating Production , May 10, 2011;