Bibby Offshore Reaches Agreement With 80% of its Noteholders to Recapitalise the Business and Strengthen its Financial Position

Aberdeen, Scotland (ots/PRNewswire) -

Bibby Offshore Holdings Limited ("Bibby Offshore" or the "Group"),
is delighted to announce that it has reached a comprehensive
agreement on the recapitalisation of its balance sheet with
noteholders who hold 80% of the £175 million 7.5% senior secured
notes due 15 June 2021 (the "Notes") issued by its subsidiary Bibby
Offshore Services Plc (the "Issuer"). The terms of the
recapitalisation (when implemented, see below for details) will
result in the Group having a substantially debt-free balance sheet
with an equity injection of £50 million to enable it to consolidate
and expand its position within the offshore inspection, repairs and
maintenance and construction markets. At completion of the
transaction, Bibby Line Group Limited ("BLG") will transfer its
entire ownership in Bibby Offshore to the Group's noteholders.

The Group's delivery of high quality services to its customers has
resulted in the Group's continued success securing new contracts.
Since the end of the reporting period, Bibby Offshore has been
awarded over 50 days of work through the traditionally quiet winter
period, with work scopes in Q4 2017 and Q1 2018 utilising both the
DSV and ROVSV fleets, from clients including Maersk, ConocoPhillips
and Perenco. The summer campaign for 2018 has also continued to
develop with approximately 100 days of work awarded in the past month
for Q2 and Q3 2018.

From a cost perspective, the Group continues to focus on cost
reductions and management have taken several actions to significantly
reduce the onshore and offshore fixed cost base. In addition, since
the start of Q3 2017 the Group has benefited from the flexible
charter arrangements on the Bibby Topaz and reductions in the US cost
base as previously announced. The Olympic Ares firm charter also
ended on the 28 August 2017 providing further reduction in the fixed
cost base, although the vessel continues to be available to the Group
on a flexible project-by-project basis and has subsequently been
deployed due to continued work demand.

Howard Woodcock, Chief Executive of Bibby Offshore, commented:

"This transaction will result in significant investment flowing
into the business and will provide the Group with an excellent and
robust financial platform from which to continue to weather current
market conditions and to capitalise on future opportunities within
the offshore services market as it improves over the medium term.
The elimination of our debt service burden, when taken together with
the benefits of our cost-saving initiatives, will position our
business well to maximise cash flow through the current market
downturn.

We look forward to continuing to provide a high quality,
responsive service safely to our customers. We would also like to
thank our customers and suppliers for the loyalty and patience they
have shown whilst we have worked to complete this transaction, our
existing shareholder BLG, for its cooperation and financial support
to date, and our noteholders who have agreed to make a significant
financial investment in the Group in order to support the business
moving forward. "

Conference call details

There will be a conference call hosted by management with input
from the Company's advisors to discuss today's announcement and
comment on the Group's Q3 2017 results at 2:00 pm (GMT) on Tuesday, 5
December 2017.

Dial-in details for the call are shown below:

- 020-3059-8125 (UK)
- +44-20-3059-8125 (Rest of World)

Press release

The full details of this press release can also be found on our
website at http://www.bibbyoffshore.com/news

Summary of the recapitalisation

At completion of the transaction, BLG will transfer its entire
ownership in Bibby Offshore to the Group's noteholders. The terms of
this transaction are set out in further detail below, together with
copies of the full term sheets.

Plan Value

- The recapitalisation is based on a plan value of approximately £115
million, based on a pre-money firm value of approximately £65
million attributable to the existing £175 million Notes plus an
additional £50 million of new money injected through the Rights
Offering (as defined below).

Rights Offering

- Based on a pre-money firm value of approximately £65 million
attributable to the existing £175 million Notes, existing
noteholders will be offered the opportunity to subscribe for their
pro rata share of a rights offering in the total amount of £50
million at a 45.7% discount to the theoretical ex-rights price,
resulting in 80.0% equity in the post-restructured group being
issued to such subscribers (the "Rights Offering").
- The proceeds from the Rights Offering will be injected into the
post-restructured group at completion to be used for working
capital, to repay the RCF, cash on balance sheet and transaction
expenses.

Rights Offering Backstop

- As of today, noteholders holding 80% of the Notes have provided a
backstop of 100% of the Rights Offering (the "Rights Offering
Backstop").
- Subject to eligibility criteria, all existing noteholders will be
given the opportunity to elect to participate in the Rights
Offering Backstop on a basis pro rata to their holdings of the
Notes until 5 January 2018.
- In order to participate in the Rights Offering Backstop,
noteholders must, by no later than 5 January 2018, accede to: (i) a
lock-up agreement; and (ii) a subscription agreement, both of which
are available at the following website
http://www.bibbyoffshore.com/news, and take certain other steps as
set out in the practice statement letter which is described below.
The accession deeds for both the lock-up agreement and the
subscription agreement will also be appended to the practice
statement letter which is described below.
- Eligible existing noteholders which elect to participate in the
Rights Offering Backstop will receive a backstop fee of 4.0% of the
equity in the post-restructured group on a basis pro rata to their
underwriting commitments.

The Notes

- The existing Notes, to which an aggregate pre-money value of
approximately £65 million is attributed, will be fully extinguished
in exchange for new shares. Following the £50 million new money
discounted rights issue and taking into account other carve-outs,
the new shares issued for the existing Notes will represent 15.0%
equity in the post-restructured group.
- Any noteholder which is unable to receive equity (or which fails to
provide the information required in order to receive equity) will
have its pro rata equity held on trust for a period of 18 months
following which its equity will be sold at the best price
reasonably obtainable at such time, and the proceeds distributed to
such noteholder.

December Coupon

- In connection with the recapitalisation process and to ensure that
there will be a smooth transition to the new owners, the Issuer's
directors have resolved not to make the coupon payment that falls
due on 15 December 2017 (subject to a 30-day grace period) pursuant
to the Notes.

Restructuring Work Fee

- The largest noteholder who led the restructuring will be paid a
monthly work fee of £200,000 for each calendar month (or part
thereof) that it has participated in restructuring discussions as
compensation for the intensive work that it has undertaken in
respect of the restructuring, accruing from August 2017 through to
the effective date of the restructuring, to be paid in (and not to
exceed 1.0% of) equity in the post-restructured group (the "
Restructuring Work Fee").

Post-Restructuring Equity

- Prior to dilution by the management incentive plan ("MIP") (the
terms and quantum of which remain to be agreed following completion
of the restructuring) the equity in the post-restructured group
will be split as follows:

Entity Share Percentage
Existing Noteholders 15.0%
Participants in Rights Offering 80.0%
Rights Offering Backstop Fee 4.0%
Restructuring Work Fee 1.0%

Governance

- A simple majority of the holders of equity in the post-restructured
group (calculated excluding the MIP) will appoint directors,
provided that the two largest minority investors holding at least
10% of the shares of the new parent company of the
post-restructured group ("TopCo") shall be entitled to appoint a
director (an "Investor Director"). Any 5% shareholders that have
not appointed an Investor Director may appoint a board observer.
The board will initially comprise five (5) members.
- Any dealings in equity in the post-restructured group will be
subject to the following arrangements: (i) tag-along rights set at
50% of the outstanding shares; (ii) drag-along rights set at 50% of
the outstanding shares for all cash (or other marketable
securities) deals and drag-along rights set at 66.67% for other
transactions; (iii) mandatory offer at 75% of the outstanding
shares; and (iv) right of first refusal on transfers granted to 10%
shareholders pro rata in respect of transfers to "restricted
persons" (i.e. competitors of the Group) and right of offer for all
shareholders in respect of all other transfers.
- Any fundamental changes to the nature and structure of the
investment and any material transactions will require consent of a
majority of 75% of the holders of equity in the post-restructured
group.
- Shareholders will have a right to receive summaries of annual
budget, annual audited financial statements and half-yearly
unaudited financial statements. Such information will be provided
to them on a private Intralinks website and, for the avoidance of
doubt, no cleansing of shareholder information will be required.
- The governance and shareholder relationships described above will
be documented by way of articles of association and, if required, a
shareholders agreement.

Appointment of Independent Consultant on behalf of noteholders

- Within the next 7 days, Bibby Offshore will appoint an independent
consultant on behalf of the noteholders to support management on
the ongoing cash flow management and transition of the business to
the new shareholders.

BLG

- BLG will have no equity in the post-restructured group.
- BLG will continue to support the Group's revolving credit facility
until the restructuring effective date (at which point it will be
repaid in full) and has provided funding under the Group's
revolving credit facility in order to settle certain ongoing
disputes with a vessel owner in the United States, in relation to
the termination of a charter agreement in October 2015.
- BLG has entered into a lock-up agreement in relation to the
restructuring, pursuant to which it has agreed to (i) provide
customary and reasonable representations and undertakings related
to support of and non-interference with the Restructuring and (ii)
transfer all of its shares in Bibby Offshore to a new
noteholder-owned holding company.
- BLG has also entered into (i) a transitional services agreement,
which includes arrangements to ensure that the Group is
transitioned to its new owners in an orderly manner and (ii) a
brand and IP licence, pursuant to which the "Bibby Offshore" name
and all associated intellectual property rights may continue to be
used by the Group for a transition period of 12 months following
the completion of the Restructuring and thereafter return to BLG.
- BLG and the Group have also agreed a tax loss sharing provision
related to the sharing of the Group's tax losses in the 2016 and
2017 tax years.

Implementation

- The transaction will be implemented by way of an English law scheme
of arrangement, which requires the approval of a majority in number
and at least 75% in value of the noteholders present and voting.
- Upon the sanctioning of the scheme of arrangement by the court, the
transaction will be binding on all noteholders whether or not they
voted or voted in favour of the scheme.
- The key dates for the scheme of arrangement, as currently
anticipated, are:

Step Date
Scheme Practice Statement Letter
distributed 29 November 2017
Q3 Results Call 5 December 2017
Scheme Convening Hearing 20 December 2017
Scheme Explanatory Statement
distributed 20 December 2017
Rights Offering Backstop Deadline 5 January 2018
Scheme Voting Instruction Deadline 9 January 2018
Scheme Creditors' Meeting 10 January 2018
Scheme Sanction Hearing 12 January 2018
Scheme Effective Date 12 January 2018
15 January 2018

(or as soon as reasonably
Restructuring Effective Date practicable thereafter)

- Further details will be provided in the practice statement letter
which will be distributed by Bibby Offshore Services Plc on or
around the date hereof.

Operations

- All operations are expected to continue as normal and without
disruption throughout this process. The Group will continue to make
all payments in full to its suppliers, trade partners and
employees.

Bibby Offshore Holdings Limited: Third Quarter 2017 Results

Financial Highlights

Unaudited Quarter Year to
Date
Figures in GBP millions, unless
otherwise stated Q3 2017 Q3 2016 YTD 2017
YTD 2016

Revenue 29.7 57.7 66.8
110.6
Operating profit / (loss) before
one-off items (12.3) (1.6) (51.5)
(26.5)
One off items (6.4) (0.7) (6.6)
(0.3)
Operating profit / (loss) (18.7) (2.3) (58.1)
(26.8)

EBITDA before one-off items (8.8) 2.0 (40.4)
(15.6)
EBITDA (10.5) 1.3 (40.0)
(15.9)

Note: EBITDA is defined as profit for the period plus finance
costs, income taxes, depreciation and amortisation

OPERATIONAL AND FINANCIAL REVIEW

Results from operations

Unaudited Quarter Year to
Date
Figures in GBP millions, unless
otherwise stated Q3 2017 Q3 2016 YTD 2017
YTD 2016

Project results (6.9) (5.1) (13.9)
(9.6)
Net operating asset costs (0.4) 7.4 (23.4)
(5.1)
One-off items (6.7) (0.5) (5.6)
0.3
Gross profit (14.0) 1.8 (42.9)
(14.4)

Project margin (23)% (10)% (21)%
(8)%
Vessel utilisation 63% 98% 48%
69%

Note: Utilisation is measured on the number of vessel working days
divided by the days available, which excludes maintenance periods

The Group saw increased levels of activity in its core North Sea
market during the third quarter compared to the previous reporting
period, however, the summer season has been disappointing overall.
The Group's financial results were also impacted by non-cash
impairments following a review of vessel valuations. Low levels of
utilisation, continued pressure on margins and the short term nature
of the tendering market all impacted the Group's financial
performance. Notwithstanding the market conditions, Bibby Offshore
continues to deliver industry leading project execution for its
clients, with repeat business remaining high and the framework
agreements signed earlier in the year continuing to generate work.

Overall utilisation increased in Q3 driven by a seasonal increase
in activity in the North Sea over the previous quarter, however this
was partially offset by extended idle periods for the Bibby Sapphire
in the US. The Group continued to see a trend towards short notice
call-out work and growth in work scopes, once awarded.

North Sea Update

During the period the Group completed projects for ConocoPhillips,
Engie, Fairfield, Apache, EnQuest, Maersk, Saipem, TAQA, CNR, Perenco
and Endeavour. As a proven operator, Bibby Offshore continues to be
awarded work by repeat clients.

The Framework Agreements continued to be utilised with
ConocoPhillips and BP awarding work during the period. Both were
significant campaigns, involving decommissioning work for
ConocoPhillips and IRM work for BP.

Bibby Offshore has also successfully secured several new contracts
since the period end.

The Olympic Bibby continues to work on short term contracts and
therefore has not been placed into layup for the winter period yet as
it has been in previous years.

International Update

In the US, the Bibby Sapphire commenced a short project for Shell
during the period, however the market has been depressed compared to
previous summer seasons. The cost reductions previously announced
reduced the financial impact for the Group, however, given the
ongoing difficult market conditions the Bibby Sapphire has now been
placed into a period of minimum safe manning whilst we assess
options.

As part of its ongoing cost reduction programme and focus on core
geographies in which it operates, the Group took the decision to sell
its fleet of ROVs in Singapore. This decision has allowed Bibby
Offshore to immediately realise the value created by the team on the
ground, with the sale of its five ROVs for which it received a net
consideration of £3.5 million, after settling outstanding hire
purchase agreements. The Group will also recognise savings from the
cessation of its lease on the Loyang office and the reduction in
associated personnel costs.

Reductions in Cost Base

Since the Group last reported, management have taken several
actions to significantly reduce the onshore and offshore fixed cost
base. In addition, since the start of Q3 the Group has benefited from
the flexible charter arrangements on the Bibby Topaz and reductions
in the US cost base as previously announced. The Olympic Ares firm
charter also ended on

28 August 2017 providing further reduction in the fixed cost base,
although the vessel continues to be available to the Group and has
subsequently been deployed on a flexible project-by-project basis.

Recent Developments

Since the end of the reporting period, the Group has continued to
be successful in winning new contracts. Bibby Offshore have been
awarded over 50 days' work through the traditionally quiet winter
period, with work scopes in Q4 2017 and Q1 2018 utilising both the
DSV and ROVSV, from clients including Maersk, ConocoPhillips and
Perenco.

The summer campaign for 2018 has also continued to develop with
approximately 100 days' of work awarded in the past month for Q2 and
Q3 2018.

As noted in previous announcements, the Group received
notification in January 2016 of a citation from a US vessel owner
seeking compensation for the "termination" of a three-year charter
agreement in October 2015, and a further citation was served by the
vessel owner in March 2017 alleging common law fraud and
racketeering. The Group has now reached settlement with all parties
on this matter without any admission of guilt or liability by any
party, and full provision is included in the quarter's results.

Summary

Bibby Offshore will enter 2018 with a strong balance sheet and a
significantly reduced cost base. The recapitalisation of the business
together with the improving market outlook, reflected in the growing
summer campaign, means the Group is well placed to weather the
current market conditions and to capitalise on new opportunities.

Financial Results

Unaudited Quarter Year to
Date
Figures in GBP millions,
unless otherwise stated Q3 2017 Q3 2016 YTD 2017
YTD 2016

Revenue 29.7 57.7 66.8
110.6
Direct costs (37.0) (55.4) (104.1)
(125.3)
Direct costs - one-off (6.7) (0.5) (5.6)
0.3
Gross profit (14.0) 1.8 (42.9)
(14.4)
Administrative costs (4.1) (3.6) (12.9)
(11.8)
Administrative costs -
one-off 0.3 (0.2) (1.0)
(0.6)
Foreign exchange (0.9) (0.3) (1.3) -
Operating profit / (loss) (18.7) (2.3) (58.1)
(26.8)
Loss on sale of assets (2.1) - (2.4) -
Interest (3.9) (3.7) (11.1)
(11.1)
Profit / (loss) before tax (24.7) (6.0) (71.6)
(37.9)
Tax (4.7) 0.2 2.3
5.3
Profit / (loss) after tax (29.4) (5.8) (69.3)
(32.6)
Currency translation on
foreign operations 0.9 0.3 1.2
0.5
Total comprehensive income (28.5) (5.5) (68.1)
(32.1)

EBITDA - before one off items (8.8) 2.0 (40.4)
(15.6)
EBITDA (10.5) 1.3 (40.0)
(15.9)
EBITDA Margin (35)% 2% (60)%
(14)%

EBITDAR - before one off
items (0.0) 11.5 (11.0)
11.8
EBITDAR (2.4) 10.8 (13.2)
11.5
EBITDAR Margin (8)% 19% (20)%
10%

Gross debt 184.0
186.4
Cash and cash equivalents 3.1
55.8
Net Debt 180.9
130.6
Net Leverage N/M
N/M

Note: EBITDAR is defined as EBITDA plus charter costs; where
EBITDA is calculated as net profit for the period plus finance costs,
income taxes, depreciation and amortisation.

Revenue in the quarter reflects the improving utilisation compared
to Q1 and Q2 2017. We have seen a seasonal increase in the level of
activities although we continue to see short gaps in the schedule,
which reduces our ability to gain efficiencies from a continuous
campaign of work. Despite the seasonal increase in activities the
pressure on margins has not eased, impacting total revenue. Revenue
also reflects the mix of work, which includes further air diving
projects in shallower waters, which command lower day rates.

Utilisation across the whole fleet was 62% for the quarter (98% in
Q3 2016) with the UK North Sea fleet achieving a 77% utilisation but
offset by very low utilisation of only 3% in the US.

Given the continuing challenging market conditions the carrying
value of revenue generating assets has been reviewed and a provision
for non-cash impairment of assets of £7.0m has been recognised in the
quarter.

Compared to the second quarter overheads continue to reduce as we
pursue maximum efficiencies in our operations. Compared to the same
period last year, gross overheads have reduced. However, on a net
basis they have increased. This is due to increasing insurance
premiums and IT software licence, depreciation on the new ERP system
and lower recovery of £1.2m of overheads from projects due to the
level of utilisation in the period. One off costs include the cost of
redundancies in Houston and Singapore offset by releases of onerous
lease provisions in line with the unwinding of the Singapore office
lease.

Interest costs remain in line with previous year as borrowings
remain largely unchanged, representing the £175m Bond which matures
in 2021 and smaller amounts of Hire Purchase used to finance asset
acquisitions.

Given the trading results we expect to generate corporation tax
credits in the UK.

Reconciliation of operating profit to net cash flow from operating
activities before taxation

Unaudited Quarter Year to
Date
Figures in GBP millions,
unless otherwise stated Q3 2017 Q3 2016 YTD 2017
YTD 2016

Operating profit / (loss) (18.7) (2.3) (58.1)
(26.8)
Add: Depreciation &
Amortisation 8.2 3.6 18.1
10.9
EBITDA (10.5) 1.3 (40.0)
(15.9)
Currency translation 1.0 0.1 1.5
-
Taxation - - -
0.6
(Increase)/decrease in
working capital 1.2 (11.8) 7.6
(11.4)
Profit/(loss) on sale of
fixed assets (2.1) - (2.4)
-
Net cash inflow / (outflow)
from operating activities (10.4) (10.4) (33.3)
(26.7)
Investing activities 7.5 (0.4) 8.0
(3.6)
Financing activities (1.2) (1.5) (8.4)
(11.1)
Increase / (decrease) in cash (4.1) (12.3) (33.7)
(41.4)

Closing cash balance 3.1 55.8 3.1
55.8

The net cash outflow from operating activities was £10.4m in the
quarter (Q3 2016 £(10.4)m) reflecting the loss made in the quarter.

Tax payments relate to payments on account of the previous year's
results. Given the trading position, there were no tax payments in Q3
2016 or 2017.

All capex continues to be discretionary with no material
expenditure incurred during the quarter. Funds realised from the sale
of ROVs generated net proceeds of £3.5m after repayment of the
associated HP debt. An agreement was finalised to secure asset based
funding for the recent new IT infrastructure and systems put in place
to support our new ERP.

Financing payments relate to repayment of capital and interest on
hire purchase agreements. No dividends were paid in the quarter. In
the quarter to 30 September 2017 the group drew £2.0m of funding from
the RCF with a further £5.4m drawn subsequent to the quarter end. As
of 23 November a total of £7.4m is drawn with a further £0.3m
utilised by the issue of performance bonds.

Cash and cash equivalents held on 30 September 2017 were £3.1m.

EXTRACTED FROM UNAUDITED CONDENSED GROUP FINANCIAL STATEMENTS AS
AT 30 SEPTEMBER 2017

Condensed group statement of profit, loss and comprehensive income
for the period ended 30 September 2017

2017
2016
2017 Non - 2017
2016 Non- 2016
Underlying Underlying Total
Underlying Underlying Total
GBPm GBPm GBPm
GBPm GBPm GBPm

Group turnover: continuing
operations 66.8 - 66.8
110.6 110.6

Cost of sales (104.1) (5.6) (109.7)
(125.3) 0.3 (125.0)

Gross profit (37.3) (5.6) (42.9)
(14.7) 0.3 (14.4)

Administrative expenses (14.2) (1.0) (15.2)
(11.8) (0.6) (12.4)

Operating (loss)/profit:
continuing operations (51.5) (6.6) (58.1)
(26.5) (0.3) (26.8)

(Loss)/profit on sale of
tangible fixed assets (2.4) - (2.4)
- - -

Finance costs (net) (11.1) - (11.1)
(11.1) - (11.1)

(Loss)/profit on ordinary
activities before taxation (65.0) (6.6) (71.6)
(37.6) (0.3) (37.9)

Tax on (loss)/profit on
ordinary activities 0.9 1.4 2.3
5.2 0.1 5.3

(Loss)/profit for the
financial period (64.1) (5.2) (69.3)
(32.4) (0.2) (32.6)

Currency translation
difference on foreign
operations 1.2 - 1.2
0.5 - 0.5

Total comprehensive (loss)/
income (62.9) (5.2) (68.1)
(31.9) (0.2) (32.1)

The full unaudited condensed group financial statements are
available at http://www.bibby-offshore.com/investors

Interim condensed group balance sheet as at 30 September 2017

Unaudited
Unaudited

30 September 30
September
2017
2016
GBPm
GBPm

Fixed assets
Tangible assets 84.1
116.6

Current assets
Stocks 1.8
2.0
Debtors 28.7
51.0
Cash and cash equivalents 3.1
55.8

33.6
108.8

Creditors: amounts falling
due within one year (33.5)
(45.1)

Net current assets 0.1
63.7

Total assets less current
liabilities 84.2
180.3

Creditors: amounts falling
due after more than one year (174.7)
(177.3)

Provisions for liabilities (9.4)
(9.7)

Net (liabilities)/assets (99.9)
(6.7)

Capital and reserves
Called up share capital 17.0
17.0
Profit and loss reserve (116.9)
(23.7)

Shareholders' funds (99.9)
(6.7)

The full unaudited interim condensed group financial statements
are available at http://www.bibby-offshore.com/investors

Interim condensed group statement of changes in equity

As at 30 September 2016

Called-up
Profit and
share
loss Unaudited
capital
reserve Total
GBPm
GBPm GBPm

Audited 31 December 2015 17.0
8.4 25.4
Loss for the nine month period to 30
September 2016 -
(32.6) (32.6)
Currency translation difference on foreign
operations -
0.5 0.5

Unaudited 30 September 2016 17.0
(23.7) (6.7)

As at 30 September 2017

Called-up
Profit and
share
loss Unaudited
capital
reserve Total
GBPm
GBPm GBPm

Audited 31 December 2016 17.0
(48.8) (31.8)
Loss for the nine month period to 30
September 2017 -
(69.3) (69.3)
Currency translation difference on foreign
operations -
1.2 1.2

Unaudited 30 September 2017 17.0
(116.9) (99.9)

The full unaudited interim condensed group financial statements
are available at http://www.bibby-offshore.com/investors

Interim condensed group cash flow statement for nine month period
ended 30 September 2017

Unaudited Unaudited
9 months
to 9 months to
30
September 30 September

2017 2016

GBPm GBPm

Net cash (outflow)/inflow from operating activities
(33.3) (26.7)

Cash flows from investing activities:
Proceeds from sale of tangible fixed assets
8.1 -
Purchase of tangible and intangible assets
(0.1) (3.8)
Interest received
- 0.2

Net cash flows from investing activities
8.0 (3.6)

Cash flows from financing activities
Repayments of hire purchase agreements
(5.4) (3.8)
Draw down on short term loan
2.0 -
New obligations under hire purchase agreements
2.2 -
Interest paid
(7.2) (7.3)

Net cash (outflow)/inflow from financing activities
(8.4) (11.1)

Net (decrease)/increase in cash and cash equivalents
(33.7) (41.4)

Cash and cash equivalents at beginning of year
36.8 97.2

Cash and cash equivalents at end of year
3.1 55.8

Reconciliation to cash and bank in hand
Cash at bank and in hand
3.1 15.8
Short term money market investments
- 40.0

3.1 55.8

The full unaudited interim condensed group financial statements
are available at http://www.bibby-offshore.com/investors

Special note regarding forward looking statements

This announcement contains both historical and forward-looking
statements. These forward-looking statements are not based on
historical facts, but rather reflect our current expectations
concerning future results and events and generally may be identified
by the use of forward-looking words such as "anticipate", "expect",
"suggests", "plan", "believe", "intend", "estimates", "targets",
"projects", "should", "could", "would", "may", "will," "forecast", or
other similar words. Similarly, statements that describe our
objectives, plans or goals are or may be forward-looking statements.
These forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause our actual results,
performance or achievements to differ materially from the anticipated
results, performance or achievements expressed or implied by these
forward-looking statements. Risks that could cause actual results to
differ materially from the results anticipated in the forward-looking
statements include, among other things: expenditures by the oil and
gas industries, the demand for energy and the prices of oil, gas and
refined products; delays or cancellations of projects in our backlog;
our ability to win new contracts; inaccurate estimates of the cost of
performing services when pricing contracts; reliance on a small
number of key clients or contracts; the concentration of our business
in one region and the disproportionate exposure to regional supply
and demand factors; general economic conditions and their impact on
operating performance and results of operations if our ability or our
clients' ability to raise capital is affected; damage to our business
reputation and safety record; environmental and operational risks
beyond our control; our dependence on and ability to attract and
retain skilled personnel, independent experts, technical and
operational service providers and key members of management; our
ability to maintain our competitive position; actions of third
parties; our dependence on independent sub-contractors and our
limited control over them; our need for additional capital to
maintain and acquire competitive assets in anticipation of business
growth; the unexpected lengths of time for which our vessels may be
taken out of service; equipment or mechanical failures; changes in
licensing and other regulatory requirements in the countries in which
we do business; potential liabilities and increased compliance costs
associated with operating within strict environmental regimes; our
international operations and compliance with multiple regulatory
regimes; risks inherent in the operation of our vessels; our
inability to keep pace with technological developments in our
industry; the availability of diving gas; adverse weather conditions;
and disruptions in fuel supplies. Should one of these known or
unknown risks materialize, or should our underlying assumptions prove
incorrect, our future results could be adversely affected, causing
these results to differ materially from those expressed in our
forward-looking statements. These factors are not necessarily all of
the important factors that could cause our actual results to differ
materially from those expressed in any of our forward-looking
statements. Other unknown or unpredictable factors also could have
material adverse effects on our future results. The forward-looking
statements included in this release are made only as of the date of
this release. We cannot assure you that projected results or events
will be achieved. We do not intend, and do not assume any obligation
to update any industry information or forward looking information set
forth in this release to reflect subsequent events or circumstances.

Contact: Bibby Offshore - +44(0)1224-857755

ots Originaltext: Bibby Offshore
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