Smedvig Reports Operating Profits For 2001

Smedvig reports preliminary consolidated operating profit for 2001 of $112 million, an increase of $16 million from the previous year. The operating profit is the best result ever posted by the company. The result reflects a high utilization of the company's fleet of drilling units, favorable market conditions and efficient operations. Operating profit for the fourth quarter was $25.4 million, a decrease of $5.8 million as compared to the previous quarter. Net financial expenses for the year was $61 million as compared to net financial expenses of $ 100 million in the previous year. Operating profit from the Mobile Units Division for the year amounted to NOK 650 million, up from NOK 599 million in 2000. The result is the best ever posted by this division. The improvement is due to higher utilization and increased average dayrates for the drilling units combined with a full year of operations for the newbuilds West Navion and West Venture, delivered in 2000. For the fourth quarter, operating profit amounted to $12.4 million as compared to $22 million in the previous quarter. The decrease is mainly due to off-hire of West Navion. The utilization rate for the mobile units averaged approximately 94 percent as compared to 92 percent in 2000.