FPSO'S

[10 bagger]

PROD.ol

HIGHLIGHTS
* Cidade de São Mateus and Azurite en route to their
respective fields in Brazil and Congo. Ningaloo
Vision expected to arrive in Australia towards end
of Q1
* Azurite on dayrate since January 1
* Total project cost estimate unchanged since last
quarter
* Solid financial position - liquidity reserve of USD
461 million at 31 December 2008
* Write-down of USD 196.8 million due to previously
communicated cost overruns on the three new
FPSOs, as well as reduced market value of the VLCC
M/T Takama
* Operating result of USD 20.9 million excluding
write-down

Main figures
(Figures in brackets refer to the corresponding period of 2007)
As the book value of the three new FPSOs are higher than implied when
determining day rates during the bidding phase, and due to the
reduction in the market value of the VLCC M/T Takama, the company has
in the 4th quarter written down the value of the vessels by a total
of USD 196.8 million. The write-down has no impact on liquidity or
loan covenants.
Operating profit for the 4th quarter of 2008 amounted to USD -175.9
million (USD 23.3 million). The difference compared to the same
period last year is largely related to the impairment charge.
Excluding the impairment charge, the operating profit for the quarter
amounted to USD 20.9 million.
Interest expenses amounted to USD 11.2 million (USD 1.5 million) for
the quarter. The increase over the 4th quarter of 2007 is a result of
higher debt level due to the three current conversion projects. Other
financial items of USD - 4.3 million (USD 1.3 million) largely
relates to unrealised losses on financial derivatives used to hedge
future cash flow.
The tax income of USD 3.8 million (USD -4.0 million) in the 4th
quarter of 2008 is a result of positive changes in the Company's tax
position in New Zealand.
The net result for the quarter equalled USD -186.7 million (USD 19.5
million). The net result excluding impairment charge amounted to USD
10.1 million.
The operating result for the year ended 31 December 2008 amounted to
USD -111.8 million (USD 59.2 million), while the net result totalled
USD -203.6 million (USD 53.0 million). Excluding the impairment
charge and one off split costs, the operating result for 2008 was USD
88.2 million. Excluding the abovementioned items, as well as the book
loss from the sale of shares in Teekay Petrojarl, the net result for
the year was USD 49.0 million.
Total assets amounted to USD 1,981 million (USD 1,173 million) as of
31 December 2008. The increase is mainly a result of investments made
in relation to the three ongoing conversion projects. Equity amounted
to USD 806 million (USD 990 million), resulting in a book equity
ratio of 41%.
Financial situation
Prosafe Production is in a comfortable financial position as of 31
December 2008 and is well within all covenant requirements defined in
the loan agreements.
Total draw-down on the USD 1.2 billion debt facility was USD 950
million at the end of the year, while cash and deposits amounted to
USD 211 million. Thus, the company had a total liquidity reserve of
USD 461 million.
Net interest-bearing debt amounted to USD 822 million (USD 67
million) at the end of 2008. This is somewhat less than anticipated,
due to reallocation of certain project investments from 4th quarter
2008 to 1st quarter 2009.
Operations and projects
The combined uptime of the fleet was 94.3 percent (99.2 percent) in
the 4th quarter of 2008. Due to bad weather, FSO Endeavor, which
operates off the coast of India, had close to 30 days of downtime
during the quarter. However, this had limited financial impact. All
other units operated as normal.
The company has three ongoing conversion projects - FDPSO Azurite
(Murphy, Congo), FPSO Cidade de São Mateus (Petrobras, Brazil), and
FPSO Ningaloo Vision (Apache, Australia). The first two vessels have
left Singapore and are currently en route to Congo and Brazil,
respectively. Azurite has been on dayrate since January 1, while
Cidade de São Mateus is anticipated to go on dayrate in late March.
Ningaloo Vision is scheduled to leave the shipyard in March,
approximately one month later than previously planned.
Outlook
The long-term market outlook remains positive. The turmoil in the
world economy does not change the view that an increasing part of oil
production in the future has to come from difficult and less
accessible offshore fields, where the FPSO concept has advantages
over other development solutions.
However, in the short-term, the market outlook remains uncertain.
Falling oil prices have created uncertainty with regards to the
financial viability of some development prospects. Concurrently, it
has also become more difficult for oil companies to fund investments.
Consequently, it is likely that the activity level in 2009 will be
somewhat lower than experienced over the past few years.


Limassol, 11 February 2009
Prosafe Production Public Limited

For further information please contact:
Bjørn Henriksen, President and CEO
Phone: [phone]
E-mail: [e-mail]

Sven Børre Larsen, Executive VP and CFO
Phone: [phone]
E-mail: [e-mail]


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