2008 Annual Report - SBM Offshore

SBM Offshore Annual Report 2008 / Financial Statements 2008 1073. Other income Other operating income 2008 2007and expenses US$000 US$000Net gains on disposal of PP&E 9,802 494Other operating income 543 819Other operating income 10,345 1,313Information on the nature of expensesThe tables below set out the reconciliation between expenses by function and expenses by nature forall items included in EBIT for the years 2008 and 2007:In US$000 Lease Turnkey Selling and General and Other Totalmarketing administrative expensesexpensesRevenue 810,158 2,250,118 – – – 3,060,276Cost of sales (553,810) (2,092,850) – – – (2,646,660)Gross margin 256,348 157,268 – – – 413,616Other operating income 44 356 – 9,945 – 10,345Employee benefits (135,175) ( 344,768) (16,873) (86,985) ( 6,970) ( 590,771)Selling expenses – – (16,542) – – ( 16,542)Depreciation and amortisation (234,118) ( 13,692) ( 175) ( 6,635) ( 373) ( 254,993)Other operating costs (198,561) ( 56,719) ( 3,920) 3,598 (14,022) ( 269,624)Transfer to cost of sales 567,854 415,179 – – – 983,033Total expenses 0 0 (37,510) (90,022) (21,365) ( 148,897)Operating profit (EBIT) 2008 256,392 157,624 (37,510) (80,077) (21,365) 275,064Sale of the FPSO MystrasOn 16 July 2008 Agip Energy and Natural Resources (Nigeria) Ltd. exercised its purchase option topurchase the FPSO Mystras. The income relating to this transaction is shown in the turnkey segment.Sale of the FPSO Tantawan ExplorerOn 11 June 2007 the notification to Exercise the purchase option to purchase the ‘Tantawan Explorer’was received from Chevron Offshore (Thailand) Ltd. The transfer of the vessel to Chevron took placein August 2008. The income related to this transaction is shown in the turnkey segment.Sale of Alblasserdam SouthOn the 16th of April 2008 the land located in Alblasserdam South was sold to an external party. Theincome is included in Other operating income and shown as part of the general and administrativesegment.The combined effect of the abovementioned transactions on the 2008 income statement amount toUS$ 31.4 million.