251844 Awilco_aars_eng.ps - COSL Drilling Europe AS

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Notes Awilco parent company Note 1 Corporate information Awilco Offshore ASA is a public limited liability company incorporated and domiciled in Norway. The address of the main office is Beddingen 8,0118 Oslo,Norway. The consolidated financial statements for the year ended December 31, 2005, were approved by the Board of Directors on March 29, 2006. The principal activity of Awilco Offshore ASA and its subidiaries is the investment in and operation of accommodation rigs and jack-up drilling rigs. Note 2 Summary of significant accounting policies General The parent company’s accounts are prepared in accordance with the Norwegian Accounting Act and generally accepted accounting principles in Norway. Reporting currency The parent company’s reporting currency is the Norwegian kroner (NOK). Recognition of revenues and expenses Revenues are recognized as earned. Costs are expensed in the same period as related revenue. Classification of balance sheet items Assets and liabilities related to the operation of the company are classified as current assets and liabilities. Assets for long-term ownership or use are classified as fixed assets. Other assets are classified as current assets. Liabilities which fall due more than one year after being incurred are classified as long-term liabilities. Liabilities which fall due less than one year after they are incurred are classified as current liabilities. Pensions The present value of the pension liabilities under defined benefit pension plans has been calculated based on actuarial principles. The present value of the pension liabilities and the pension plan assets is included under long-term liabilities and long-term assets, respectively. The change in net pension liabilities is expensed in the profit and loss account as personnel expenses. The effect of changes in estimates, change in pension plans and actuarial gains and losses are recognized as income or expense over the average remaining service period. Net pension expenses include the present value of pension earnings for the period, interest expense on pension obligations incurred, expected return on the pension funds and the amortized effect of changes in estimates and plans. Fixed assets Fixed assets are stated at acquisition cost less accumulated amortization, accumulated depreciation and write downs. Assets are amortized or depreciated on a straight-line basis over their estimated economically useful lives. Write downs are made if the fair value of a fixed asset is lower than its book value and if the reduction is not deemed temporary.A write down is reversed to the extent that the basis for the write down is no longer present. Share-based transactions Employees receive remuneration in the form of share-based payment transactions, whereby employees render services in exchange for share appreciation rights with cash settlement. The cost of the share-based incentive plan is measured,at each balance sheet date, by reference to the fair value at the date which they are granted.The fair value is determined by an external valuer using an option pricing model (Black & Scholes). The cost of the share-based payment is recognized,together with a corresponding accrual, over the vesting period.The cumulative expense recognized for equity settled transaction at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the best available estimate of the number of equity instruments that will ultimately vest. 48
Awilco parent company Notes Income taxes Taxes are calculated based on the financial result and consists of taxes payable and deferred taxes. Deferred tax is calculated on the basis of temporary differences between book and tax values that exist at the end of the financial period,and based on the nominal value calculation. Shares in subsidiaries and other shares Investments in subsidiaries are recorded at historic cost in the balance sheet.The same applies for other share investments. A write down is recorded if the underlying market value is estimated to be lower than recorded book value. Monetary items in foreign currency Monetary items in foreign currency are translated at year end exchange rates. Realized currency gains and losses are taken to the profit and loss account when an installment is paid. Cash, cash equivalents and cash flow statement Cash represents cash on hand and deposits with bank that are repayable on demand. Cash equivalents represent short-term, highly-liquid investments which are readily convertible into known amounts of cash with original maturities of three months or less. The cash flow statement is prepared using the indirect method. Note 3 Operating revenue Operating revenue is mainly related to services performed for other group companies. The company also recorded a supervisory technical management fee that was invoiced to a company in the Anders Wilhelmsen group,which is the main shareholder of Awilco Offshore ASA. in NOK thousands 2005 Management fee from subsidiaries 2 600 Management fee from other related parties 109 Total operating income 2 709 Note 4 General and adminstrative expenses in NOK thousands, unless otherwise indicated Employee related expenses 2005 Salaries and social security tax 4 755 Bonuses 5 300 Pension costs, defined benefit/contribution plan 1 672 Share-based payments 13 793 Total 25 521 Number of employees 5 Other administrative expenses Accrued board of directors fees 1 200 Stock listing fees 1 217 Lawyer fees 1 952 Management fees 6 630 Other 1 956 Total 12 956 Total general and administrative expenses 38 477 49
Page 1 and 2: Awilco Offshore ASA Annual Report 2
Page 3 and 4: Key figures Figures in USD 1.000 In
Page 5 and 6: Premium Drilling In it’s venture
Page 7 and 8: Depreciation expense was USD 7.2 mi
Page 9 and 10: Awilco Offshore has built up site t
Page 11 and 12: PPL Design: Class: Water depth Dril
Page 13 and 14: Port Rigmar Design: Built / convert
Page 15: USD mill. Paid 1q06 2q06 3q06 4q06
Page 18 and 19: Profit and Loss Statement Awilco Of
Page 20 and 21: Cash Flow Statement Awilco Offshore
Page 22 and 23: Notes Awilco Offshore group Note 1
Page 24 and 25: Notes Awilco Offshore group Stateme
Page 40 and 41: Proforma figures 2004 Awilco Offsho
Page 42 and 43: Balance sheet Awilco Offshore group
Page 44 and 45: Profit and Loss Statement Awilco pa
Page 46 and 47: Cash Flow Statement Awilco parent c
Page 50 and 51: Notes Awilco parent company The com
Page 52 and 53: Notes Awilco parent company Note 9
Page 54 and 55: Notes Awilco parent company Deferre
Page 60: Auditor's Auditors Report report fo

251844 Awilco_aars_eng.ps - COSL Drilling Europe AS

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