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May 13, 2015

Prosafe SE : First quarter 2015 results

Operating profit for the first quarter came to USD 55.4 million and net profit amounted to USD 27.0 million. The utilisation of the fleet was 80 per cent in the fourth quarter. An interim dividend of NOK 0.36 per share was resolved.

Operations
Utilisation of the fleet was 80 per cent in the first quarter of 2015 (76 per cent in the  first quarter of 2014).

Safe Caledonia, Regalia and Safe Astoria were fully utilised during the  quarter.

In the first quarter, the utilisation rate for the five vessels operating in Mexico was 93 per cent.  During this quarter, Prosafe was also awarded contract extensions in Mexico with a total net value of USD 17 million.

Jasminia has been off hire since the end of February 2015, and operations are expected to recommence during the second quarter of 2015. Hibernia is currently performing the Jasminia contract. Safe Britannia has been awarded a contract extension until the end of August 2015 at a lower day rate. Safe Britannia will be off-hire for approximately one month in the second quarter to undergo a planned DP upgrade.  Safe Lancia and Safe Regency are contracted until the end of 2016 and the end of 2017, respectively.

Safe Concordia is working on a three-year contract with Petrobras in Brazil. In mid-February, the vessel went to the Maua shipyard in Brazil, to undergo a five-year special periodic survey and upgrade, which is expected to be completed in late May.

Safe Scandinavia was on contract with Premier Oil at the Solan field in UK until the end of February.  In March the vessel arrived at the Westcon Yard in Ølensvåg, Norway, where she will be converted to a Tender Support Vessel.  Contract commencement for Statoil at Oseberg Øst is expected to be during the third quarter of 2015.

Safe Bristolia was at Hanøytangen shipyard in Norway for repair work in the first quarter.

In 2013, Prosafe was awarded a 15-month contract for Regalia by Talisman Sinopec, which commenced late August 2014. Talisman Sinopec has decided to sublet Regalia to Shell UK in the period from late March until early August 2015.

Safe Caledonia is scheduled to commence a contract for BP in July, and Safe Astoria has a firm contract in the Philippines until June 2015.

Safe Boreas is currently in the Stavanger region and will be on contract from mid-May 2015.  The vessel is ready to commence operations in respect of the hook-up and commissioning of the Edvard Grieg field.  The firm contract period is six-months, and Lundin Norway has an option to extend the contract period by two months.

Financials
(Figures in brackets refer to the corresponding period of 2014)

Operating profit for the first quarter amounted to USD 55.4 million (USD 22.9 million).  The increase reflects a combination of a higher average day rate level and a higher utilisation of the fleet.

Net financial expenses for the first quarter were USD 26.1 million (USD 4 million). This amount includes non-amortised refinancing costs of USD 10 million relating to the previous loan facility which was refinanced in February 2015.  Change in fair value of currency forwards was USD 5.5 million negative (USD 7.7 million positive).

In accordance with IFRS, interest costs totalling USD 2.7 million (USD 1.7 million) have been allocated to new build and refurbishment projects, and consequently capitalised as part of the vessel costs.

Net profit amounted to USD 27 million (USD 18.3 million), and earnings per share were USD 0.11 (USD 0.08).

Total assets at 31 March amounted to USD 2 157.5 million (USD 1 597.5 million), while the book equity ratio declined to 34.5 per cent (43.9 per cent).  Net interest-bearing debt stood at USD 977.4 million (USD 728.9 million).

Refinancing
As referred to in the Q4 2014 report, in February 2015, Prosafe entered into a new USD 1,300 million loan facility for the refinancing of the existing USD 1,100 million and USD 420 million facilities.  The new loan has a seven-year maturity and an interest rate of 3-month LIBOR plus 1.90 per cent.

Dividend
The Board of Directors resolved to declare an interim dividend equivalent to USD 0.048 per share to shareholders of record as of 21 May 2015.  The shares will trade ex dividend on 20 May 2015.  The dividend will be paid in the form of NOK 0.36 per share on 3 June 2015.

Outlook
The oil companies' focus on reduced spending and increased cost efficiency has continued during the quarter.  Demand for assets and services related to exploration, development and production of oil and gas resources has therefore remained at a low level.  In the latter part of the period, a positive movement in the oil price has been observed, and if sustained, could be expected to lead to a moderate increase in demand for offshore accommodation services.

Tendering activity is currently at a higher level than in the first quarter, and there is potential for contract awards during the coming months.

Prosafe is the world's leading owner and operator of semi-submersible accommodation/service rigs. Operating profit reached USD 248.3 million in 2014 and net profit was USD 178.8 million. The company operates globally, employs 800 people and is headquartered in Larnaca, Cyprus. Prosafe is listed on the Oslo Stock Exchange with ticker code PRS. For more information, please refer to www.prosafe.com

Attachments: Q1 2015 report, Q1 2015 presentation

Larnaca, 13 May 2015
Georgina Georgiou, General Manager
Prosafe SE

For further information, please contact:

Karl Ronny Klungtvedt, Chief Executive Officer
Prosafe Management AS
Phone: + 47 51 64 25 70

Sven Børre Larsen, Chief Financial Officer
Prosafe Management AS
Phone: + 47 51 64 25 30

Cecilie Helland Ouff, Senior Manager Finance and Investor Relations
Prosafe AS
Phone: + 47 51 64 25 20



This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.


Q1 2015 report
Q1 2015 presentation