Exhibit 15.2

NKT Flexibles I/S

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2005

Contents

	Page
Statements
Statement by the Management	1
Report of independent Auditors	2
Management’s review
Company details	3
Financial highlights	4
Financial review	5 - 7
Financial statements for the year ended 31 December 2005
Accounting policies	8 - 13
Income statement	14
Balance sheet	15 - 16
Cash flow statement	17
Notes to the financial statements	18 - 24

Statement by the Management

The Management have today discussed and adopted the Financial Statements of NKT Flexibles I/S as of and for the year ended 31 December 2005, prepared in accordance with the Danish Financial Statements Act, as presented on pages 8 - 22 of the Company’s Annual Report for 2005 and note 14 to the Financial Statements.

We consider the accounting policies applied to be appropriate. Accordingly, the Financial Statements referred to above present fairly the financial position of the Company as of 31 December 2005.

Brøndby, 23 March 2006

Management

/s/ Michael Chino Hjorth

Michael Chino Hjorth

CEO

/s/ Reidar Kleven

Reidar Kleven

COO

1

Report of independent Auditors

To the Partners of NKT Flexibles I/S:

We have audited the financial statements of NKT Flexibles I/S (“the Company”) as of and for the year ended December 31, 2004, prepared in accordance with the Danish Financial Statements Act. Such statements, as included in the Company’s Annual Report for 2004 and with the addition of note 14 “Reconciliation to United States generally accepted accounting principles (US GAAP)”, are included on pages 8-24 of Exhibit 15.2 of Amendment No. 1 to the Annual Report filed on Form 20-F of Acergy S.A. for the year ended November 30, 2005. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards as established by the Auditing Standards Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2004 and the results of its operations and its cash flows for the year then ended, in accordance with generally accepted accounting principles of the Danish Financial Statements Act.

The accounting principles of the Danish Financial Statements Act vary in certain significant respects from accounting principles generally accepted in the United States of America (US GAAP). Information relating to the nature and effect of such differences is presented in Notes 14 to the financial statements.

Copenhagen, 10 June, 2005

KPMG C. Jespersen

Statsautoriseret Revisionsinteressentskab

/s/ Lars Andersen

Lars Andersen

State Authorised Public Accountant

2

Management’s review

Company details

NKT Flexibles I/S

Priorparken 510

2605 Brøndby

Telephone:	4348 3000
Fax:	4348 3010
Homepage:	www.nktflexibles.com
E-mail:	nkt.flexibles@nktflexibles.com
CVR number:	2425 5298
Established:	1 July 1999
Registered office:	Brøndby
Board of directors:	Thomas Hofman-Bang (Chairman)
	Tom Ehret (Deputy chairman)
	Ole Bramsnæs
	Bruno Chabas
	Søren Isaksen
	Mark Preece
Management:	Michael C. Hjorth, CEO
	Reidar Kleven, COO
Bank:	Nordea Bank Danmark A/S
	Strandgade 3, 0900 København C
Auditor:	KPMG
	Borups Alle 177, 2000 Frederiksberg
	State Authorized Public Accountant Lars Andersen

3

Management’s review

Financial highlights

DKKm	2005		2004		2003		2002		2001
	(unaudited)				(unaudited)		(unaudited)		(unaudited)
Key figures
Revenue	490,7		196,5		305,3		223,3		265,6
Operating profit before depreciation	51,9		-33,7		-5,6		-15,4		-17,2
Profit before financial items	23,7		-61,1		-32,3		-311,4		-72,9
Profit/loss for the year	18,2		-64,8		-37,8		-325,6		-88,7
Fixed assets	215,4		222,7		244,5		262,0		538,0
Current assets	268,5		157,6		127,8		144,3		145,2
Total assets	483,9		380,3		372,3		406,3		683,2
Equity	146,1		131,1		132,3		171,3		312,6
Short-term liabilities	337,8		249,2		240,0		235,0		370,6
Cash flow from operating activities	42,7		-60,3		-18,5		-6,9		-89,0
Net cash flows from investment activities	-21,0		-5,5		-9,3		-20,2		-22,9
Portion relating to investment in property, plant and equipment	-22,1		-4,9		-8,4		-7,9		-22,9
Cash flow from financing activities	-15,5		65,5		17,3		21,3		128,6
Total cash flows	6,2		-0,3		-10,5		-5,8		15,9
Financial ratios
Net profit ratio	5	%	-31	%	-106	%	-139	%	-27	%
Return on investment	6	%	-16	%	-10	%	-58	%	-10	%
Gross margin ratio	48	%	54	%	47	%	58	%	50	%
Current ratio	79	%	63	%	53	%	61	%	39	%
Equity ratio	30	%	34	%	36	%	42	%	45	%
Return on equity	13	%	-49	%	-25	%	-134	%	-24	%
Average number of employees	264		225		222		227		224

The financial highlights for 2001 are not changed compared to the new accounting policy in 2002.

The financial ratios have been prepared in accordance with the Danish Society of Financial Analysts’ guidelines on the calculation of financial ratios. We refer to the accounting policies.

4

Management review

Financial review

Main activity

NKT Flexibles’ main activity is to develop, to market and produce flexible submarine pipe systems primarily for the offshore oil and gas industry. The production is carried out at the factory in Kalundborg.

Development in activities and economic conditions

Annual result

NKT Flexibles has realised revenue amounting to DKK 490.7 million in 2005 against DKK 196.5 million in 2004, corresponding to an increase of 150 %. The annual result before depreciation amounts to DKK 51.9 million against DKK – 33.7 million in 2004. The result for the year is DKK 18.2 million compared to DKK –64.8 million in 2004.

The year 2005 ended better than the expectations in the annual report for 2004. The year 2005 marked a turn-around for the Company due to improved market conditions and healthy backlog going into 2005. Throughout the year the Company has been ramping up the production in Kalundborg without loosing control of the operational expenditures, resulting in improved earnings.

The Company managed to take full advantage of an increased demand for flexible pipe during year 2005. Previous years process to improve competitiveness by focusing on product development, efficiency improvement and material technology has proven successful.

In 2005 there were no changes to the Company’s capital structure and bank facilities. The financial resources are provided through loans granted by the owners of the Company.

The realized result for 2005 is satisfactory.

Market conditions

During 2005 the oil price has stabilized at a fairly high level around USD 50 per barrel – with some fluctuation as a consequence of tropical storms and unrest in the Middle East. The general increase in oil prices are to a large extent driven by increasing consumption from China and India, which is expected to continue in the years to come.

In 2005 the activity level in the subsea offshore oil and gas industry increased substantially as a response to the continued high oil price. Throughout the year the Company has managed to improve its backlog position in terms of volume and quality.

5

Financial review

For 2006 the Company expects the market for SURF (Subsea Umbilical, Riser & Flowline) to consolidate at the same level that was experienced during 2005.

Projects

During 2005 NKT Flexibles grew its position in all offshore oil & gas regions – except Brazil – by executing a number of projects for existing as well as new Clients.

In 2005 NKT Flexibles was awarded new contracts amounting to DKK 1,093 million, which is a development that supports the future potential of the Company. By the end of the year the Company’s backlog was just above DKK 1,000 million, which is a remarkable improvement from previous years.

Of particular interest is that the Company has now reached a position in the market where large volume and value contracts are awarded. By the end of 2005 the Company is executing several DKK +100 million orders for 2006 and 2007 delivery.

Product development

R&D resources were primarily assigned to the development of new technology that will allow the Company to improve its competitiveness. Successful improvement was reached in a number of areas allowing the Company to substantially improve on its backlog. Of particular interest is the deepwater technology allowing the use of the Company’s products in water depths down to 2,000m.

Expectations

In 2006 NKT Flexibles expects an increase in the turnover compared to 2005 – primarily due to a better unit rates and higher quality of the backlog at the beginning of the year 2006 compared to the same period the year before. Founded in the expectations of better margins in the subsea market, the Company expects to be able to further improve the result in 2006 compared to 2005.

Due to the fact that a large proportion of the production capacity for 2006 is allready sold by the beginning of the year, the result for 2006 will primarily depend on the Company’s ability to act on commitments on entered contracts.

6

Financial review

The long-term potential of the Company will be realised through the continued implementation of new technology, which will lead to increased competitiveness. Of particular interest we are qualifying products for water depths down to 2,000m, which will widen the accessible market.

Special risks

Financial risks

The Company uses forward exchange contracts as a part of the hedging of recognized and unrecognized sales contracts in foreign currencies. Currencies, which are part of the EMU, are not hedged. Hedging of recognized contracts comprises receivables and payables.

Know-how

It is imperative for NKT Flexibles’ continued development to attract and maintain highly skilled and specialised manpower, including engineers possessing knowledge within the offshore business. The earning capacity of the Company will also depend on a continued training and flexibility among the blue-collar workers at the Kalundborg factory.

Environment

In line with the previous years the Company’s green accounts show that the pollution from the factory in the shape of smoke, noise and wastewater is negligible. Maintaining the environmental management system ISO14001 as well as the health and safety system OHSAS 18001 will be a high priority so that the Company can continue to live up to national as well as international standards.

The job of improving the Company’s safety level continues. Through information campaigns and compulsory safety courses for all employees we have established a better understanding of how to avoid accidents. Compared to other Danish companies of similar type, the safety level of NKT Flexibles is quite good.

7

Financial statements for the year ending 31 December

Accounting policies

The annual report of NKT Flexibles for 2005 has been prepared in accordance with the provisions applying to class C enterprises under the Danish Financial Statements Act.

The accounting policies applied in the preparation of the financial statements are consistent with those of last year.

Recognition and measurement

Assets are recognized in the balance sheet when it is probable that future economic benefits will flow to the enterprise and the value of the asset can be reliably measured.

Liabilities are recognized in the balance sheet when an outflow of economic resources is probable and when the liability can be reliably measured.

On initial recognition, assets and liabilities are measured at cost. Subsequently, assets and liabilities are measured as described below for each individual item.

Certain financial assets and liabilities are measured at amortized cost implying the recognition of a constant effective interest rate to maturity. Amortized cost is calculated as initial cost minus any principal repayments and plus or minus the cumulative amortization of any difference between cost and nominal amount.

In recognizing and measuring assets and liabilities, any gains, losses and risks occurring prior to the presentation of the annual report that evidence conditions existing at the balance sheet date are taken into account.

Income is recognized in the income statement as earned, including value adjustments of financial assets and liabilities measured at fair value or amortized cost. Equally, costs incurred to generate the year’s earnings are recognized, including depreciation, amortization, impairment and provisions as well as reversals as a result of changes in accounting estimates of amounts which were previously recognized in the income statement.

Foreign currency translation

On initial recognition, transactions denominated in foreign currencies are translated at the average exchange rates ruling last month.

Receivables and payables and other monetary items denominated in foreign currencies are translated at the exchange rates at the balance sheet date. The difference between the exchange rates at the balance sheet date and at the date at which the receivable or payable arose or was recognized in the latest financial statements is recognized in the income statement as financial income or expense.

8

Accounting policies

Derivative financial instruments

Derivative financial instruments are initially recognized in the balance sheet at cost and are subsequently measured at fair value. Positive and negative fair values of derivative financial instruments are included in other receivables and payables, respectively.

Changes in the fair value of derivative financial instruments designated as and qualifying for recognition as a hedge of the fair value of a recognized asset or liability are recognized in the income statement together with changes in the value of the hedged asset or liability.

Changes in the fair value of derivative financial instruments designated as and qualifying for recognition as a hedge of future assets or liabilities are recognized as receivables or payables and in capital and reserves. Income and expenses relating to such hedging transactions are transferred from capital and reserves on realization of the hedged item and recognized in the same item as the hedged item.

Income statement

Revenue

Revenue from the sale of goods and services is recognized in the income statement provided that delivery and transfer of risk to the buyer has taken place before year end and that the income can be reliably measured and is expected to be received. Revenue is measured ex VAT, taxes and discounts in relation to the sale.

Contract work in progress concerning special production of flexible pipes is recognized as revenue by reference to the stage of completion. Accordingly, revenue corresponds to the selling price of work performed during the year (the percentage of completion method). Revenue is recognized when total income and expenses and the stage of completion of the contract at the balance sheet date can be reliably calculated and when it is probable that the economic benefits, including payment, will flow to the enterprise.

Interest income and expense and similar items

Interest income and expense and similar items comprise interest income and expense, market gains and losses in respect of payables and transactions denominated in foreign currencies, etc.

Tax on profit/loss from ordinary activities

The enterprise is not liable to tax as it is a partnership. Therefore, tax has not been computed on the profit/loss for the year, and provisions have not been made for deferred tax.

9

Accounting policies

Balance sheet

Intangible assets

Development costs comprise costs, salaries and amortization directly or indirectly attributable to the enterprise’s development activities.

Development projects that are clearly defined and identifiable, where the technical utilization degree, sufficient resources and a potential future market or development opportunities in the enterprise is evidenced, and where the enterprise intends to produce, market or use the project, are recognized as intangible assets provided that the cost can be measured reliably and that there is sufficient assurance that future earnings can cover production costs, selling and administrative expenses and development costs. Other development costs are recognized in the income statement when incurred.

Capitalized development costs are measured at the lower of cost less accumulated amortization and the recoverable amount.

Following the completion of the development work, development costs are amortized on a straight-line basis over the estimated useful life. The amortization period is five years.

Patents are measured at cost less accumulated amortization and impairment. Patents are amortized on a straight-line basis over the remaining patent period.

Intangible assets are written down to the recoverable amount if this is lower than the carrying amount. Impairment tests are conducted annually of each individual asset or group of assets.

Gains and losses on the disposal of development projects and patents are determined as the difference between the sales price less disposal costs and the carrying amount at the date of disposal. The gains or losses are recognized in the income statement as other external expenses.

Property, plant and equipment

Land and buildings, plant and machinery and fixtures and fittings, tools and equipment are measured at cost less accumulated depreciation.

Cost comprises the purchase price and any costs directly attributable to the acquisition until the date when the asset is available for use. The cost of self-constructed assets comprises direct and indirect costs of materials, components, sub suppliers, and wages and salaries.

Interest expense on loans to finance the production of property, plant and equipment that concerns the production period is included in cost. All other borrowing costs are recognized in the income statement.

The cost of leases is stated at the lower of fair value and the present value of the future lease payments. For the calculation of the net present value, the interest rate implicit in the lease or an approximation thereof is used as discount rate.

10

Accounting policies

Depreciation is provided on a straight-line basis over the expected useful lives of the assets. The expected useful lives are as follows:

Buildings	25 years
Plant and machinery	8-15 years
Fixtures and fittings, tools and equipment	3-8 years
Computer hardware	4 years
Cars	3-5 years

Property, plant and equipment are written down to the recoverable amount if this is lower than the carrying amount. Impairment tests are conducted annually of each individual asset or group of assets.

Gains and losses on the disposal of property, plant and equipment are determined as the difference between the sales price less disposal costs and the carrying amount at the date of disposal. The gains or losses are recognized in the income statement as other operating income or other operating expenses.

Inventories

Inventories are measured at moving average prices. Where the net realizable value is lower than cost, inventories are written down to this lower value.

Goods for resale and raw materials and consumables are measured at cost, comprising purchase price plus delivery costs.

Finished goods and work in progress are measured at cost, comprising the cost of raw materials, consumables, direct wages and salaries and indirect production overheads. Indirect production overheads comprise indirect materials and wages and salaries as well as maintenance and depreciation of production machinery, buildings and equipment as well as factory administration and management. Borrowing costs are not recognized.

The net realizable value of inventories is calculated as the sales amount less costs of completion and costs necessary to make the sale and is determined taking into account marketability, obsolescence and development in expected sales price.

Receivables

Receivables are measured at amortized cost. Provision is made for anticipated losses.

Contract work in progress

Contract work in progress is measured at the selling price of the work performed by reference to the stage of completion. The stage of completion is based on the share of the contract costs paid compared with the expected total costs of the contract. When it is probable that the total contract costs will exceed total income from a contract, the anticipated loss is recognized in the income statement.

When the selling price of a construction contract cannot be measured reliably, the selling price is measured at the lower of costs incurred and net realizable value.

11

Accounting policies

Prepayments are set off against contract work in progress. Progress billings received in excess of the contract work performed are calculated separately for each contract and recognized as payments on account from customers under short-term liabilities other than provisions.

Selling costs and costs incurred in securing contracts are recognized in the income statement when incurred.

Prepayments

Prepayments comprise costs incurred concerning subsequent financial years.

Financial liabilities

Other liabilities, comprising trade payables as well as other payables, are measured at amortized cost.

Cash flow statement

The cash flow statement shows the enterprise’s cash flows from operating, investing and financing activities for the year, the year’s changes in cash and cash equivalents as well as the enterprise’s cash and cash equivalents at the beginning and end of the year.

Cash flows from operating activities

Cash flows from operating activities are calculated as the year’s profit/loss adjusted for non-cash operating items, changes in working capital and corporation tax paid.

Cash flows from investing activities

Cash flows from investing activities comprise payments in connection with acquisitions and disposals of enterprises and activities and of intangible assets, property, plant and equipment and investments.

Cash flows from financing activities

Cash flows from financing activities comprise changes in the size or composition of the company’s equity and related costs as well as the raising of loans, repayment of interest-bearing debt, and payment of dividends to shareholders.

Cash and cash equivalents

Cash and cash equivalents comprise cash and short-term marketable securities with a term of three months or less which are subject to an insignificant risk of changes in value.

Segment information

Information is provided on geographical markets. The segment information is based on the company’s accounting policies, risks and internal financial management.

12

Accounting policies

Financial ratios

Financial ratios are calculated in accordance with the Danish Society of Financial Analysts’ guidelines on the calculation of financial ratios.

The financial ratios stated in the survey of financial highlights have been calculated as follows:

Net profit ratio	Operating [profit/loss] x 100
	Revenue
Return on investment	Operating [profit/loss] x 100
	Average operating assets
Gross margin ratio	Gross [profit/loss] x 100
	Revenue
Current ratio	Current assets x 100
	Short-term liabilities other than provisions
Equity ratio	Equity, ex. minority interests at year end x 100
	Total equity and liabilities at year end
Return on equity	[Profit/loss] for analytical purposes x 100
	Average equity, ex. minority interests

13

Income statement 1 January - 31 December

		2005 DKK’000	2004 DKK’000	2003 DKK’000
		(unaudited)		(unaudited)
	Note
Revenue	1	490.736	196.462	305.307
Work performed for own purpose and capitalized		49	230	1.897
		490.785	196.692	307.204
Raw materials, consumables and goods for resale		257.621	89.441	162.555
Other production, sales and administrative costs	3	64.609	48.817	59.230
Staff costs	2	116.635	92.194	91.065
		438.865	230.452	312.850
Operating profit before depreciation		51.920	-33.760	-5.646
Depreciation and impairment on fixed assets	4	28.260	27.376	26.764
		23.660	-61.136	-32.410
Profit before financial items
Financial income		2.253	1.449	1.730
Financial expenses		7.674	5.098	7.107
Profit/(loss) for the year		18.239	-64.785	-37.787
Proposed distribution of profit/(loss):
Retained earnings		18.239	-64.785	-37.787

14

Balance sheet 31 December

Assets

		2005 DKK’000	2004 DKK’000
		(unaudited)
	Note
Fixed assets
Intangible assets	5
Patents		1.656	1.846
Patents in progress		104	0
Completed development projects		8.110	5.449
Development projects in progress		511	5.998
		10.381	13.293
Property plant and equipment	6
Land and buildings		72.734	76.791
Plant and machinery		115.078	129.636
Fixtures and fittings, tools and equipment		1.639	1.819
Property, plant and equipment under construction		15.596	1.125
		205.047	209.371
Total fixed assets		215.428	222.664
Current assets
Inventories
Raw materials and consumables		128.755	89.696
Receivables	7
Account receivables		112.412	43.354
Contract work in progress	8	7.054	8.021
Other receivables		11.253	7.527
Prepayments	9	1.517	7.708
		132.236	66.610
Cash at bank and in hand		7.525	1.347
Total current assets		268.516	157.653
TOTAL ASSETS		483.944	380.317

15

Balance sheet 31 December

Equity and liabilities

		2005 DKK’000	2004 DKK’000
		(unaudited)
	Note
Equity
Equity	10	146.113	131.097
		146.113	131.097
Liabilities
Short-term liabilities
Bank loans		24.303	16.836
Payment on account from costumers		75.608	10.546
Accounts payables		67.000	25.752
Group companies		150.509	173.423
Other debts		20.411	22.663
		337.831	249.220
Total liabilities		337.831	249.220
TOTAL EQUITY AND LIABILITIES		483.944	380.317
Contingent liabilities and other obligations	11
Notes without reference	12 - 13

16

Cash flow statement 1 January - 31 December

	2005 DKK’000	2004 DKK’000	2003 DKK’000
	(unaudited)		(unaudited)
Profit/(loss) before financial items	23.660	-61.136	-32.327
Depreciation and impairment	28.260	27.377	26.764
Changes in working capital	-3.802	-23.008	-7.551
Cash flows from operations before financial items	48.118	-56.767	-13.114
Interests received	2.253	1.449	1.730
Interests paid	-7.636	-5.013	-7.118
Cash flows from operations	42.735	-60.331	-18.502
Acquisition of intangible fixed assets	634	-1.076	-2.036
Acquisition of property, plant and equipment	-22.081	-4.934	-8.352
Disposal of property, plant and equipment	423	516	1.083
Cash flows from investing activities	-21.024	-5.494	-9.305
Paid in capital	0	60.000	0
Change in debt to credit institutions	7.467	2.399	-4.670
Change in debt to group companies	-23.000	3.127	22.000
Cash flows from financing activities	-15.533	65.526	17.330
Net cash flow from operating, investing and financing activities	6.178	-299	-10.477
Cash at bank and in hand 1 January	1.347	1.646	12.123
Net cash flow	6.178	-299	-10.477
Cash at bank and in hand 31 December	7.525	1.347	1.646

17

Notes to the financial statements

Note		2005 DKK’000	2004 DKK’000	2003 DKK’000
		(unaudited)		(unaudited)
1	Revenue
	Revenue includes the production value of construction contracts completed and in progress to the amount of	469.831	177.064	294.086
	Revenue distributed on geographical segments (DKK’000):
	Scandinavia	130.710	46.198	74.310
	Other countries in Europe	188.195	61.161	107.108
	Other countries	171.831	89.103	123.889
		490.736	196.462	305.307
2	Staff costs
	Wages and salaries	107.555	84.491	83.836
	Pensions	7.897	6.633	6.282
	Social security contributions	1.183	1.070	947
		116.635	92.194	91.065
	Average number of employees	264	225	222
	Included in staff costs is wages to the Management to the amount of 2,688 DKK’000 (2004: 2,544 DKK’000 and 2003: 2,361 DKK’000) and pensions with 118 DKK’000 (2004: 107 DKK’000 and 2003: 51 DKK’000).
3	Fees paid to independent auditor
	Audit fee	315	213	200
	Non-audit fee	19	99	160
		334	312	360
4	Depreciation and impairment
	Loss on sale of tangible fixed assets	0	0	604
	Patents	459	561	680
	Completed development projects	1.820	1.521	634
	Buildings	4.057	4.057	4.024
	Plant and machinery	21.468	20.607	20.145
	Fixtures and fittings, tools and equipment	456	630	677
		28.260	27.376	26.764

18

Notes to the financial statements

Note		Patents	Patents in progress	Completed development projects	Development projects in progress
	Amounts in DKK’000
5	Intangible assets
	Cost at 1 January 2004	2.433	0	7.603	5.577
	Additions	655	0	0	421
	Disposals	0	0	0	0
	Transferred	0	0	0	0
	Cost at 31 December 2004	3.088	0	7.603	5.998
	Impairment and amortisation 1 January 2004	681	0	633	0
	Amortisation	561	0	1.521	0
	Disposals	0	0	0	0
	Impairment and amortisation 31 December 2004	1.242	0	2.154	0
	Carrying amount at 31 December 2004	1.846	0	5.449	5.998
	Amortised over	5 years	—	5 years	—
		Patents	Patents in progress	Completed development projects	Development projects in progress
		(unaudited)	(unaudited)	(unaudited)	(unaudited)
	Cost at 1 January 2005	3.088	0	7.603	5.998
	Additions	269	104	-1.007	0
	Disposals	0	0	0	0
	Transferred	0	0	5.488	-5.487
	Cost at 31 December 2005	3.357	104	12.084	511
	Impairment and amortisation 1 January 2005	1.242	0	2.155	0
	Amortisation	459	0	1.819	0
	Disposals	0	0	0	0
	Impairment and amortisation 31 December 2005	1.701	0	3.974	0
	Carrying amount at 31 December 2005	1.656	104	8.110	511
	Amortised over	5 years	—	5 years	—
		Buildings	Plant and machinery	Fixtures and fittings	Property, plant and equipment under constr.
	Amounts in DKK’000
6	Property, plant and equipment
	Cost at 1 January 2004	190.187	431.196	7.949	3.992
	Additions	0	3.478	610	847
	Disposals	0	-1.020	-123	0
	Transferred	0	3.714	0	-3.714
	Cost at 31 December 2004	190.187	437.368	8.436	1.125
	Impairment and depreciation 1 January 2004	109.339	287.656	6.092	0
	Depreciation	4.057	20.607	631	0
	Disposals	0	-521	-106	0
	Impairment and depreciation 31 December 2004	113.396	307.732	6.617	0
	Carrying amount at 31 December 2004	76.791	129.636	1.819	1.125
	Assets held under finance leases	0	0	0	0
		Buildings	Plant and machinery	Fixtures and fittings	Property, plant and equipment under constr.
		(unaudited)	(unaudited)	(unaudited)	(unaudited)
	Cost at 1 January 2005	190.187	437.368	8.436	1.124
	Additions	0	6.559	544	14.978
	Disposals	0	-573	-969	0
	Transferred	0	506	0	-506
	Cost at 31 December 2005	190.187	443.860	8.011	15.596
	Impairment and amortisation 1 January 2005	113.396	307.733	6.617	0
	Amortisation	4.057	21.467	456	0
	Disposals	0	-418	-701	0
	Impairment and amortisation 31 December 2005	117.453	328.782	6.372	0
	Carrying amount at 31 December 2005	72.734	115.078	1.639	15.596
	Amortised over	25 years	8 - 15 years	3 - 8 years	—
	Assets held under finance leases	0	0	0	0
	Official annual valuation of Danish properties
	at 1 January 2004	38.500
	at 1 January 2005	43.500

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Notes to the financial statements

Note		2005 DKK’000	2004 DKK’000
		(unaudited)
7	Receivables
	Receivables with more than one years maturity	0	0
8	Contract work in progress
	Contract work in progress	254.975	125.560
	Progress billing	-316.865	-124.074
	Net contract work in progress	-61.890	1.486
	Recognised as follows:
	Contract work in progress	7.053	8.021
	Prepayments	-68.943	-6.535
		-61.890	1.486
9	Prepayments
	Value adjustment of hedging instruments	0	6.575
	Others	1.517	1.133
		1.517	7.708
		2005 DKK’000	2004 DKK’000	2003 DKK’000
		(unaudited)		(unaudited)
10	Equity
	Equity 1 January	131.097	132.312	171.343
	Paid in capital	0	60.000	0
	Loss for the year	18.239	-64.785	-37.787
	Value adjustment of hedging instruments, end	454	3.677	107
	Value adjustment of hedging instruments, beginning	-3.677	-107	-1.351
	Equity 31 December	146.113	131.097	132.312
	Specification of equity:
	Paid in capital 1 January	779.808	719.808	719.808
	Paid in this year	0	60.000	0
	Paid in capital 31 December	779.808	779.808	719.808
	Retained earnings 1 January	-648.711	-587.496	-548.465
	Transferred from proposed distribution of loss	18.239	-64.785	-37.787
	Value adjustment of hedging instruments	-3.223	3.570	-1.244
	Retained earnings 31 December	-633.695	-648.711	-587.496
	Equity 31 December	146.113	131.097	132.312

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Notes to the financial statements

Note		2005 DKK’000	2004 DKK’000
		(unaudited)
11	Contingent liabilities and other obligations
	Lease obligations
	Lease obligations for service and buildings amounts to:
	0 - 1 year	8.400	9.390
	1 - 5 years	8.121	2.364
		16.521	11.754
	Contingent liabilities
	The company has no contingent liabilities
12	Currency and interest rate risk and the use of derivatives
	As part of the hedging of recognized and unrecognized transactions, NKT Flexibles I/S uses forward exchange contracts. Currencies which is part of the EMU-coorporation is not hedged. Hedging of recognised transactions comprises receivables and payables.

Currency risk

DKK’000 Currency	Payment/ maturity	Receivables	Payables	Hedged by forward contracts	Net position
At 31 December 2004
EUR	< 1 year	17.335	14.065	0	3.270
USD	< 1 year	19.016	2.796	17.338	-1.118
GBP	< 1 year	690	1.025	0	-335
		Receivables	Payables	Hedged by forward contracts	Net position
		(unaudited)	(unaudited)	(unaudited)	(unaudited)
At 31 December 2005
EUR	< 1 year	72.723	30.322	0	42.401
USD	< 1 year	4.103	4.545	0	-442
GBP	< 1 year	11.122	4.322	6.800	0

Anticipated future transactions

The company hedges anticipated currency risks concerning already signed contracts on construction contracts and purchase of raw materials with forward contracts.

	Period	Contractual value			Deferred recognition in the income statement of gains/ loss (-) expected to be realized after the balance sheet date
DKK’000		2005	2004	2003	2005	2004	2003
		(unaudited)		(unaudited)	(unaudited)		(unaudited)
Forward contracts	0 - 6 months	122.371	91.427	20.829	454	3.677	107

21

Notes to the financial statements

Note
13	Related party disclosures
	Significant influence
	SubSeaFlex Holding A/S, Danco A/S
	Other related parties
	Further, the company’s related parties comprise Board of directors, Management and executive employees.
	Owners
	SubSeaFlex Holding A/S Vibeholms Allé 25 2605 Brøndby
	Ownership: 51%
	(SubSeaFlex Holding A/S is owned by NKT Holding A/S)
	Danco A/S
	Stranden
	Postboks 1524 Vika
	0117 Oslo
	Norway
	Ownership: 49%
	(Danco AS is owned by Acergy)
	Transactions with related parties
	The owners of the company has granted loans amounting to 150 mill DKK as of 31/12 2005 (as of 31/12/2004: 171 mill DKK). The loans have been granted on market conditions.
	Sale of products to Acergy in the finance year amounts to 22 % of the turnover (2004: 20%). The sale has taken place on market conditions.

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Note 14 – Reconciliation to United States generally accepted accounting principles (U.S. GAAP)

The financial statements for 2004 have been prepared in accordance with the provisions of the Danish Financial Statements Act (Danish GAAP), which differ in certain respects from U.S. GAAP.

The following is a summary of the adjustments to net income for the year ended December 31, 2004 and equity as of December 31, 2004, necessary to reconcile those to net income and equity determined in accordance with U.S. GAAP.

Reconciliation of net income and equity under Danish GAAP to U.S. GAAP

(All figures in DKK thousand)

			Net loss for the year ended December 31, 2004		Equity as of December 31, 2004
As reported under Danish GAAP			(64,785	)	131,097
Reversal of capitalized development costs, net of accumulated amortization as of 1 January 2004	(a	)	—		(12,547	)
Development costs incurred in 2004	(a	)	(421	)	(421	)
Amortization of development costs in 2004	(a	)	1,521		1,521
Derivatives not meeting SFAS 133 criteria	(b	)	3,677		—
As reported under U.S. GAAP			(60,008	)	119,650

(a) Development costs

According to Danish GAAP development projects that are clearly defined and identifiable, where the technical utilization degree, sufficient resources and a potential future market or development opportunities in the enterprise is evidenced, and where the enterprise intends to produce, market or use the project, are recognized as intangible assets provided that the cost can be measured reliably and that there is sufficient assurance that future earnings can cover production costs, selling and administrative expenses and development costs. Other development costs are recognized in the income statement when incurred.

Capitalized development costs are measured at the lower of cost less accumulated amortization and the recoverable amount.

Following the completion of the development work, development costs are amortized on a straight-line basis over the estimated useful life. The amortization period is five years.

Intangible assets are written down to the recoverable amount if this is lower than the carrying amount. Impairment tests are conducted annually of each individual asset or group of assets.

Under US GAAP development costs are expensed as incurred.

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(b) Derivatives

According to Danish GAAP derivative financial instruments are initially recognized in the balance sheet at cost and are subsequently measured at fair value. Positive and negative fair values of derivative financial instruments are included in other receivables and payables, respectively.

Changes in the fair value of derivative financial instruments designated as and qualifying for recognition as a hedge of the fair value of a recognized asset or liability are recognized in the income statement together with changes in the value of the hedged asset or liability.

Changes in the fair value of derivative financial instruments designated as and qualifying for recognition as a hedge of future assets or liabilities are recognized as receivables or payables and in capital and reserves. Income and expenses relating to such hedging transactions are transferred from capital and reserves on realization of the hedged item and recognized in the same item as the hedged item.

Under U.S. GAAP, Statement of Financial Accounting Standards (“SFAS”) No. 133 “Accounting for Derivative Instruments and Hedging Activities” was adopted by the Company as of January 1, 2001. SFAS No. 133 establishes accounting and reporting standards for derivative instruments, including embedded derivatives, and for hedging activities. SFAS No. 133 requires that all derivatives be recognized as either assets or liabilities in the consolidated balance sheet and measured at fair value. Depending on the documented designation of a derivative instrument, any change in fair value is recognized in either income or equity (as a component of accumulated other comprehensive income). As the Company did not meet the documentation standards of SFAS 133 for its forward exchange contracts, the unrealized gain associated with its forward exchange contracts is recognized through the income statement for U.S. GAAP purposes. There is no effect on equity.

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