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    DSND releases report for second quarter

    News // August 15, 2003
    DSND Inc has released details of its results for the second quarter of 2003.The net result in the second quarter of 2003 was US$8.2 million, compared to a loss of US$3.6 million in the second quarter 2002. The improvement in net result is primarily due to the positive effect of establishing the joint-company Subsea 7 in May 2002and a lower level of debt.

    DSND said combined UK/Norway subsea capex and opex spending for 2003 is marginally up on 2002 levels. Levels in 2004 to 2006 are expected to remain flat or with further marginal growth. The transfer of ownership from majors to smaller operators, particularly on the UK self, could trigger more activity.

    Initiatives on cross border cooperation have been taken by British and Norwegian authorities, in order to encourage the operators to more developments.

    Subsea capex in Brazil has leapt from approx US$1.3 billion in 2002 to US$2.2 billion in 2003 and is expected to maintain around this level to 2006. There are large investments not only in deeper water but also in re-development of mature fields, and anincreasing demand for opex support. Deeper water and heavy oil finds necessitate new flow assurance technologies.

    Subsea capex is forecasted to double from US$0.5 billion in 2002 to US$1 billion in 2006. East China is considered highly prospective and there are major capex spending plans in India over the next five years. Gas demand is expected to dictate much of the development activity in the region.

    Increasing US demand and concern over security of supplies point to more activity in the Gulf of Mexico and increased drilling activity. Current developments in Mexican waters are predominantly in the shallow water depth, but much of the exploration is now in deeper waters.

    18 identified major projects are expected to be awarded in West Africa in 2006, of which 12 projects are in water depths of 1,000-1500m. The development of the many deep water subsea fields in the region is expected to increase the need for advanced subsea solutions.

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