Stolt Offshore S.A. [Graphic omitted]
Julian Thomson/Fiona Harris
Stolt Offshore S.A.
US +1 877 603 0267 (toll free)
UK +44 1224 718436
Patrick Handley (UK)/Tim Payne (US)
UK +44 207 404 5959
US +1 212 333 3810
Stolt Offshore S.A. Earnings Guidance and Update
London, England - November 28, 2003 - Stolt Offshore S.A. (Nasdaq NM: SOSA: Oslo Stock Exchange:
STO) today provides guidance on financial performance for the twelve months ending November 30, 2003,
together with an update on current trading.
Stolt Offshore's net loss for 2003 is expected to be between $400 million and $450 million. This figure reflects
project losses, asset write-downs, non-recurring restructuring charges and provisions resulting from a more
conservative view being adopted in respect of revenue recognition. This latter point, taken together with current
negotiations with clients on 2003 receivables, accounts for the range in estimated losses.
Losses on Legacy Contracts: Losses on the Burullus, OGGS and Bonga projects are now estimated to be in the
region of $170 million in 2003. Work programmes on Burullus and OGGS are now complete, with Bonga 70%
finished and due to complete in Q2 2004. For the remainder of the Bonga project, Stolt Offshore has agreed to
an incentive scheme with the client, SNEPCO, which provides the potential for future revenue gains.
Stolt Offshore has initiated arbitration proceedings against the Algonquin Gas Transmission Company, a Duke
Energy subsidiary, in pursuit of a resolution for the Hubline project. The parties are organising a parallel mediation
process in an attempt to reach a settlement.
Asset Write-downs: Following the conclusion of a thorough review of certain businesses and the asset base, Stolt
Offshore will recognise a non-cash write-down of approximately $180 million in Q4. This figure includes an