In press release of 18 July 2011 we informed that Farstad Shipping ASA, on certain conditions, had reached an agreement with Petroserv S.A. in Brazil to buy Petroserv's 50% share in BOS Navegação S.A.
The formal aspects of the financial transaction are now set, and payment for the shares has taken place. The acquisition will be consolidated in Farstad Shipping's accounts as from 1 July 2011.
Prior to the acquisition we have treated our 50% share as a joint controlled operation in the accounts. This implies that our existing shares will also be adjusted in the accounts according to the values used in the acquisition of the remaining shares. This revaluation will be incorporated in the profit and loss accounts for the 3rd Quarter and implies an income of NOK 105.4 million. NOK 70.4 million of the amount will be booked as profit "by gradual acquisition", while the remaining NOK 35.0 million will be booked as a reduction of deferred tax.
Further, the acquisition will result in a revaluation of NOK 89.0 million in the account of the 3 vessels owned by BOS, a goodwill of NOK 88.4 million and an allocation to deferred tax of NOK 30.3 million. The equity capital will increase by NOK 49.4 million.
The acquisition will improve Farstad Shipping's position for further growth in the Brazilian market. BOS was established in June 1999 as a joint venture between Farstad Shipping and Petroserv. Today the company owns 3 AHTS, all on contracts to Petrobras. In addition BOS operates 11 Farstad vessels in Brazil. BOS' offices in Rio de Janeiro and Macaé employ 39 people onshore and 336 people offshore.
CEO Karl-Johan Bakken - tel. +47 901 05 697
CFO Torstein Stavseng - tel. +47 911 07 001
Farstad Shipping's fleet currently consists of 57 vessels (32 AHTS, 22 PSV and 3 SUBSEA) and 6 PSV and 2 AHTS under construction. The company's operations are managed from Aalesund, Aberdeen, Melbourne, Perth, Singapore, Macaé and Rio de Janeiro with a total of 1970 employees engaged onshore and offshore. The company's strategy is to be a leading quality provider of large, modern offshore service vessels to the oil industry. The company maintains a long-term charter profile for the fleet.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.