Acergy Performs Strong Over Third Quarter
Acergy, a seabed-to-surface engineering and construction contractor for the offshore oil and gas industry, has announced its unaudited results for the third quarter which ended on August 31, 2008.
Jean P. Cahuzac, Chief Executive Officer, said, "Acergy continues to consistently deliver successful execution of complex and technically challenging projects. For the quarter, this has been converted into a very strong set of financial results and it is noteworthy that the level of backlog has increased by 20% year on year. Following the successful completion of the Acergy Piper scope of work on the Mexilhao Trunkline Project, we remain on track to achieve our guidance for 2008."
From a commercial perspective, we have seen recently higher levels of tendering in Northern Europe, demand in Brazil remains high and discussions on large projects in Nigeria and Asia have resumed. The medium and long-term fundamentals for our business remain robust which, coupled with our solid backlog and strong balance sheet, positions Acergy well to capitalise on the anticipated market growth.
Acergy Africa and Mediterranean -- As expected, net operating revenue decreased to $233.4 million (Q3 2007: $336.0 million) due to unusually high levels of planned dry-docks on Acergy Polaris, Acergy Legend and Acergy Hawk. Good progress was made on major projects, including Saxi Batuque, EPC2B and Block 15. As a result of the high level of dry-docking activity net operating income decreased to $20.7 million (Q3 2007: $55.9 million) due to significantly lower activity levels of projects in offshore installation.
Acergy Northern Europe and Canada -- Net operating revenue was $278.7 million (Q3 2007: $280.7 million) reflecting high levels of SURF, IMR and survey activity, despite the absence of trunkline revenue in the region during the quarter. Net operating income increased to $100.1 million (Q3 2007: $59.6 million) driven by strong project performance on all regional projects, including significant progress on Marathon Volund, Sage Hot Tap and Tyrihans subsea installation. There was near full vessel utilization in the quarter and contribution from Acergy Piper operating in Brazil.
Acergy North America and Mexico -- Net operating revenue was $1.2 million (Q3 2007: $1.4 million) with net operating income of $0.3 million (Q3 2007: net loss of $3.1 million) due to the contribution from Frade, the cross-regional project, which progressed on schedule.
Acergy South America -- Net operating revenue increased to $191.2 million (Q3 2007: $63.3 million) driven by good revenue contributions from SURF projects and the Mexilhao Trunkline Project. Petrobras obtained a restricted environmental permit on Mexilhao in early August allowing the Acergy Piper to complete her scope of the offshore installation work. Resolution of the claim pertaining to the permit related delays is progressing satisfactorily with Petrobras, as is negotiation on risk reduction associated with the remaining scope of the project. The three ships on long-term service agreements to Petrobras achieved full utilization outside of planned dry-docks. Net operating income was $3.2 million (Q3 2007: net operating loss of $0.9 million).
Acergy Asia and Middle East -- Net operating revenue increased to $48.4 million (Q3 2007: $27.9 million) following the completion of the Liu Hua project and good progress on other projects, including Van Gogh and Pluto. Net operating income of $6.8 million (Q3 2007: net operating loss $11.6 million) reflected good project performance and successful project close-outs. The Sapura 3000 performed well and completed the first offshore phase of the Kikeh Project.
Non-consolidated Joint Ventures
The third quarter contribution from non consolidated joint ventures was $12.8 million (Q3 2007: $10.5 million). Good contributions from NKT Flexibles and Seaway Heavy Lifting were partly offset by a loss from the SapuraAcergy joint venture. During the quarter, the SapuraAcergy joint venture was awarded its first contract in India, for completion in fiscal year 2009.
- Acergy Awards Serimax Welding Contract Offshore Nigeria (Mar 07)
- Acergy Awarded Contract Offshore Brazil (Dec 01)
- Acergy Awarded Contract for Medway Development Project (Nov 04)