Awilco Offshore Reports Results

During the fourth quarter Awilco Offshore bought 38% of the shares in Offshore Rig Services (OFRS), which made Awilco Offshore the largest shareholder of OFRS. Port Reval was secured winter work for 06/07, and has now firm employment until mid-07. Premium Drilling is well established with offices in Housten and Singapore, and has been accepted by major oil companies as a preferred drilling contractor. WilPower was launched in February 2006.

Fourth quarter 2005

Revenues for the period from October to December came to MNOK 89.2. The company's income statement shows an operating profit before depreciation and amortization (EBITDA) of MNOK 19.7, and operating profit after depreciation of MNOK 5.4. Port Reval has during the fourth quarter operated on the Norwegian Continental Shelf, with corresponding increased operating costs. In addition, delayed non-recurring project costs related to Port Reval (in connection with upgrades for operation on the Norwegian Continental Shelf) of approx. MNOK 3,8 have been included in the fourth quarter numbers. Included in the administration expenses in the fourth quarter is approx. MNOK 14 as the calculated value of share based payment as per note 1.3 to the interim financial report. Net financial items came to MNOK -26.8. Profit before tax was MNOK -21.4, and net profit MNOK -15.4.

As per December 31 2005, total assets amounted to MNOK 2,993. Awilco Offshore is well positioned to meet the remaining payments for the newbuilding contracts through its strong cash position and undrawn debt facilities.