Summary

Half-year profit of US$ 53.8 million well ahead of prior year (US$ 34.2 million - mainly due to timing of project deliveries and losses in van der Giessen de Noord in 2003).
New orders totalling a low US$ 415 million in the first six months of 2004 but additional awards since 30 June 2004 of approximately US$ 440 million.
Successful start-up of the Okono FPSO for Agip in Nigeria and of the Marlim Sul FPSO for Petrobras in Brazil.
Promising prospects for the Offshore division in near to medium term.
Decision taken to proceed with sale of Shipbuilding division instead of separate listing. Sale expected to be concluded during 4th quarter 2004.
Net income for full year 2004 of around US$ 100 million prior to expected book loss on the sale of the Shipbuilding division.

Forecast for the full year 2004
Net income and cashflow guidance for 2004 was not provided at the beginning of the year due to uncertainties concerning the timing and manner of the Shipbuilding activities split-off, and the timing of major project awards in the Offshore division.
With the Shipbuilding sale process now well under way, and a clearer business picture in the Offshore, the Group expects that 2004 will generate:
• Net operational income of around US$ 100 million (US$ 3.02 per share).
Offshore division results will maintain the level achieved in 2003, while
Shipbuilding returns to profitability.
• EBITDA of around US$ 365 million (US$ 11.08 per share).
• Capital expenditure of around US$ 250 million, compared with US$ 530 million
in 2003.
The above assumes a full year’s contribution from Shipbuilding although the
Group’s consolidated results will ultimately include Shipbuilding only up until the effective date of the sale expected during the 4th quarter 2004.
3. Split-off - Update
On 2 August 2004, the Group decided to proceed with the sale of the Shipbuilding
division rather than to seek a separate listing. This decision was based upon
several non-binding offers received from bidders who had been provided with the
Information Memorandum.
A short list of bidders has been established, and each party is currently undertaking due diligence procedures. It is expected that the entire sale process will be completed during the 4th quarter 2004. Until such time no
indication of the anticipated level of sales proceeds can be disclosed, except that the Group does not expect to receive net proceeds equal to the equity book value of the Shipbuilding division.
An extraordinary shareholders meeting will be convened during the fourth quarter to approve the sale proposal.