Nexus - Fourth Quarter 2007 result

Nexus’ FPSO projects on track – firm market interest

Arendal, 23 January 2008: The project development related to the two FPSO’s Nexus#1 and Nexus#2 is progressing according to plan. Several interesting prospects for employment of the vessels are being pursued. Nexus retains its positive market outlook and is confident it will secure attractive contracts for the vessels.

The company had no revenues in the fourth quarter, compared to USD 145 thousand in the corresponding quarter of 2006. For the full year 2007, revenues were USD 193 thousand caompared to USD 145 thousand in 2006. The revenues are related to paid vessel placement studies. NEXUS had negative EBITDA of USD 1.3 million, compared to USD 0.4 million in the fourth quarter 2006. For the full year EBITDA was negative with USD 4.3 million compared with USD 0.7 million in 2006. In the fourth quarter of 2007 the company had a net loss before taxes of USD 0.4 compared with USD 0,1 in the corresponding period 2006, while the full year result was a loss of USD 2,9 million against a loss of USD 0,2 million in 2006.

"Our two projects developed according to plan in 2007. There are several potential clients in the process of evaluating the technical solutions for bringing their oil resources to the market place, where the Nexus FPSO with its harsh environment capability and early delivery position should represent an attractive opportunity" says CEO Anders Holm.

During 2007 the two vessels under order have been marketed world-wide. Market opportunities have actively been pursued in all main geographical target areas through bids, paid studies and dialogue with possible clients. Prospects have been targeted globally. The vessels are designed for operation in the North Sea, the Atlantic West of Shetland and East of Canada, the Norwegian Sea and the Barents Sea. Also the Gulf of Mexico and offshore Australia are regions where the Nexus FPSOs will be well suited due to its specifications and the high hurricane and typhoon activity in these areas.

The company has fully financed both the first vessel and the operational cost needed to run the company during the construction period until the mid of 2009. During 2007 another MUSD 100 was raised as part of the financing for the second vessel. Another USD 585 million is needed to complete the financing. According to the company’s financial strategy parts or all of this will be raised during the first half or 2008. The company is preparing for this, and thus the 2007 financial statements have been prepared on a going concern basis.

Attached: Fourth quarter and Full year report 2007

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For further information:
    Anders Holm, CEO, +47 90 60 50 72
    Arild Bårdsen, CFO, +47 92 66 75 90