Comments to the Bonheur ASA accounts

On 4 October 2006, Bonheur purchased a total of 584,800 shares in Ganger Rolf, thereby becoming owner of more than 50% of the company's share capital (51.28%). The transaction was accounted for as business integration under common control of private Fred. Olsen related companies, see comments under Note 1 and Note 3 below. The effect of this was that Ganger Rolf as from the fourth quarter 2006 became a fully consolidated subsidiary of Bonheur.

Bonheur has historically consolidated its investment in Ganger Rolf according to the equity capital method (as an associated company). As the method of consolidation changed to full consolidation, this has a substantial effect on Bonheur's accounts and, therefore, on comparisons with previous periods.

Accounting regulations require Bonheur to present accounts as they were actually submitted in previous periods (not proforma). This means, that Bonheur's official accounts for the fourth quarter and for the full year 2006 are presented as follows:

* Fourth quarter 2006 with full consolidation of subsidiaries in the accounts

* Fourth quarter 2005 with consolidation according to the equity capital method

* 2006 with subsidiaries fully consolidated in the fourth quarter accounts and included according to the equity capital method in the first through third quarter accounts.

* 2005 as earlier reported according to the equity capital method.

The corresponding figures in the official accounts are thus based on different methods of consolidation.

Bonheur has therefore emphasized to prepare proforma accounts for corresponding periods in order to present comparable figures( i.e. fourth quarter 2005 and year 2005). These proforma accounts are presented as Note 11. It is expected that Bonheur's interim reports as from the fourth quarter 2007 will be wholly based upon the accounting principles and the format presented here, as this will be the first quarter where the corresponding figures from earlier periods have been based upon identical consolidation methods.

Financial information

The figures are given in NOK unless otherwise stated. Where the figures for the corresponding period 2005 are comparable, they are entered in parentheses (se explanation above).

The Group operating revenue amounted to 1,586 million in the quarter. This also represents the operating revenue for the full year, as the subsidiaries were not fully consolidated in the first three quarters of the year.

For the same reason, the operating result before depreciation (EBITDA) was 513 million in the quarter and 495 million for 2006. The 18 million difference is due to net operating costs of altogether 18 million during the first three quarters of the year.

Net financial items in the quarter were negative 39.6 million, while the corresponding figure for the full year was negative 71.1 million.

Associated companies were consolidated with a total negative result in the quarter of 27.5 million, of which Tusenfryd with negative 10.2 million, mainly because of depreciation of operating equipment, as well as the fact that the fourth quarter is off-season; Comarit with negative 8.3 million, mainly because of the low season and Oceanlink Ltd. with negative 6.1 million, largely due to high financial costs.

The result after tax and minority interests amounted to 162.9 million in the quarter and 829.9 million for the full year. The minority interests consist of a 45,89% ownership in Fred.Olsen Energy ASA and 48,72% in Ganger Rolf ASA.

The Group operating areas consist of Energy services, Renewable energy, Shipping and Other investments. The results for the individual operating areas are shown in Note 6. The area Energy services is subdivided into Offshore drilling and Floating production, while Shipping is subdivided into Tankers, Cruise, Ferry activity and Other shipping. All operating areas were consolidated according to the equity capital method in 2005 and in the three first quarters of 2006. The fourth quarter 2006 is fully consolidated in the accounts. Any comparison with earlier periods is therefore "irrelevant" as the official accounts according to regulations are presented. For a more "relevant" comparison with corresponding periods in 2005, please refer to Note 11.

Other information

Events after 31 December 2006

In January 2007, M/T Knock Stocks, a single hull suezmax tanker built in 1993 was sold. The sales price was USD 32.75 million and delivery will take place in the period 15 March to 15 May 2007.

On 19th January 2007, Bonheur ASA reported that the subsidiary First Olsen Ltd. had decided to start a process aimed at separating and listing its floating production activity organized in Fred. Olsen Production AS (FOP) in the course of the first half of 2007. In line with this decision, FOP on 9 February 2007 carried out an issue of a total of 44 million shares at a price of 27 kroner per share. This issue produced total proceeds of roughly 1.2 billion.

Dividend / Annual General Meeting

The board will propose to the Annual General Meeting to approve a dividend of 8.90 NOK per share. In view of the positive development of the financial results and the generally strong market situation within the company's main business areas, the board has found it appropriate to recommend an unusually high level of dividend at this juncture.

The Annual General Meeting is scheduled for Thursday 31 May 2007.

The full report including tables can be downloaded from the following link: