HOUSTON, April 23, 2012 /CNW/ - SSP Offshore Inc. (the "Corporation") today released its annual financial statements and MD&A for the year ended December 31, 2011. The full text of the financial statement and MD&A are available for review online at www.sedar.com.
Paul Illingworth, CEO of the Corporation, highlighted the following items extracted from the annual disclosure materials:
- The Corporation received in January 2012 a $1,000,000 exclusivity fee payment (net $900,000 to the Corporation after commissions) from a Brazilian company relating to the SSP Hub application. Detailed terms of the relationship between SSP and the Brazilian company are still being finalized as the parties continue to market the SSP Hub application to prospective Brazilian clients.
- During the fourth quarter of fiscal 2011, the Corporation reported $110,000 in revenue relating to its ongoing business. This is the first time the Corporation has reported revenue from its ongoing business operations. This reported revenue included $80,000 from preliminary design and engineering work completed on behalf of a large international oil and gas producer relating to the prospective application of the Corporation's SSP platform designs in the Gulf of Mexico and $30,000 from license fees on its fixed platform designs for use in Mexican territorial waters.
- The Corporation advised that it is currently completing additional preliminary design and engineering work on behalf of another large international oil and gas producer relating the prospective application of the SSP platform designs for West African applications.
- General and administrative expenses decreased by over $300,000 year-over-year as the Corporation continued to focus on closely managing ongoing costs during this phase of its commercial development.
Mr. Illingworth advised that "we are continuing our dual focus of marketing the SSP floating platform technology to potential clients while identifying prospective strategic partners in the offshore floating oil and gas industry who can bring value to the Corporation at the enterprise level through various forms of strategic relationships. We believe that the recently completed and ongoing FEED projects demonstrate progress with potential clients towards our ultimate goal of securing definitive contracts for the use of the SSP floating platform technology. On the strategic partnership side, we remain engaged in active discussions with a variety of entities in various regions and will work to bring these relationships to fruition in the upcoming months. Although it is difficult to measure progress incrementally during the long sales cycle associated with commercializing a new technology in the offshore oil and gas industry, we continue to see positive developments as a result of our efforts."
About SSP Offshore Inc.
SSP Offshore is a public company listed under the symbol "SSZ" on the TSX Venture Exchange. The Corporation is actively commercializing its proprietary SSP® FPSO platform design in two formats: (i) SSP Base and (ii) SSP Plus+. Visit the company's website at www.sspoffshore.com for more information.
Certain statements contained herein constitute forward-looking statements. Although the company believes the statements are reasonable, it can give no assurance that such expectations will prove to be correct. The company cautions investors that any forward-looking statements made by the company are not guarantees of the future performance, and that the actual results may differ materially from those in the forward-looking statements as a result of various factors.
The TSXV has neither approved nor disapproved of this press release.
For further information:
L. Daniel Wilson, President, at (403) 358-1110 (phone); (403) 887-7666 (fax); or [email protected].