Prosafe SE : Second quarter and first half 2015 report

Operating profit for the second quarter came to USD 22.8 million and net profit amounted to USD 12.2 million. Prosafe has entered into contracts of a total gross value of approximately USD 240 million in August. An interim dividend of NOK 0.40 per share was resolved.

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

Second quarter

Revenues for the second quarter of 2015 were USD 92.5 million (USD 133.4 million). Revenues are reduced by USD 12.7 million as a result of a commercial agreement which overall will result in a net positive revenue effect in the longer term.

Operating profit amounted to USD 22.8 million (USD 55.0 million).

Net financial expenses for the second quarter were USD 7.0 million (USD 10.0 million). This change is mainly due to favourable currency effects partly offset by higher interest costs.

Net profit amounted to USD 12.2 million (USD 42.1 million), corresponding to diluted earnings per share of USD 0.05 (USD 0.18).

Total assets at 30 June amounted to USD 2,241.7 million (USD 1,689.9 million), while the book equity ratio declined to 33.9 per cent (40.9 per cent). Net interest-bearing debt stood at USD 1,123.7 million (USD 799.2 million).

Operations
The fleet utilisation rate in the second quarter of 2015 was 58 per cent.

Regalia, Safe Astoria, Safe Regency, Safe Lancia and Safe Hibernia were fully utilised during the quarter.

Safe Britannia underwent a planned DP upgrade during the second quarter and was off-hire for 30 days. Jasminia remains off-hire after going off contract in late February 2015.

Safe Concordia completed a five-year special periodic survey and upgrade works at the Maua Shipyard in Brazil during the quarter. The contract with Petrobras re-commenced late June 2015.

The new build Safe Boreas arrived in Norway in April. The contract with Lundin Norway AS for support in connection with the hook-up and commissioning of the Edvard Grieg platform in the North Sea commenced in mid-May. In addition, Lundin Norway has exercised the first of the one-month options.

Safe Caledonia was contracted to Nexen Petroleum U.K. until the end of April. The contract with BP Exploration Operating Company Limited for support at the Andrew field in UK commenced early July 2015.

Safe Bristolia completed repair work at the Hanøytangen shipyard in Norway during the quarter. The contract with BG International Limited for work at the Everest field in UK commenced at the beginning of June 2015 in accordance with the announcement made on 22 May 2015.

The contract for Safe Astoria with Shell Philippines Exploration BV at the Malampaya field has been extended until late August.

New builds and projects
The conversion of Safe Scandinavia to a tender support vessel at the Westcon yard in Ølensvåg, Norway, continued during the second quarter. The project is experiencing some further delays and the start-up of the contract for Statoil is expected to take place during the fourth quarter of 2015.

As stated in the operational update published on 29 July 2015, the total capital expenditure for 2015 is expected to increase by 5 to 10 per cent relative to previous guidance, as a result of the extended yard stays for Safe Scandinavia and Safe Concordia and further cost increases related to the Safe Bristolia repair work.

The cost forecasts for the new builds remain as previously communicated.

Safe Boreas was delivered from the yard in Singapore in January 2015, with delivery of its sister vessel Safe Zephyrus scheduled for Q4 2015.

Construction of the Safe Notos and Safe Eurus in China is progressing as planned. As a result the vessels should be ready for operations during the first and second half of 2016 respectively.

New contracts
Prosafe has entered into contracts of a total gross value of approximately USD 240 million in August. From Q1 2017 Safe Eurus will work for three years for Petrobras in Brazil. Safe Notos will be deployed on an eight month contract in the UK from Q2 2016, with Safe Zephyrus covering a short period at the start of the contract.

In addition, the contract for Safe Astoria in the Philippines has been extended to late August 2015 and Lundin Norway has exercised an option to extend the contract for Safe Boreas by one month to December 2015.

With these new contracts Prosafe has now secured work for all four new builds.

Outlook
The oil and gas services market remains challenging, and in the current lower oil price environment Prosafe has seen prospects being deferred or work scopes being reduced. However, Prosafe has been awarded several new contracts and extensions, resulting in improved short term revenue visibility. Set against this relatively robust short term outlook, uncertainty remains in respect of the medium term.  Nevertheless, the company should be well placed to continue to take relative advantage of market conditions in the longer term.

Dividend
The Board of Directors resolved to declare an interim dividend equivalent to USD 0.048 per share to shareholders of record as of 28 August 2015.  The shares will trade ex dividend on 27 August 2015. The dividend will be paid in the form of NOK 0.40 per share on 10 September 2015.

Risk
Prosafe's key risks are described in detail in the Directors' Report as set out in the Annual Report 2014 and include Prosafe's main operational risks e.g. day rate level and  utilisation rate of the accommodation vessels. The company's results also depend (inter alia) on operating costs, interest expenses and exchange rates.

Statement from the Board, the CEO and the CFO
We confirm that, to the best of our knowledge, the financial statements for the first half year of 2015, which have been prepared in accordance with IAS 34 Interim Financial Statements as adopted by the European Union and the requirements of the Cyprus Companies Law, give a true and fair view of the company's assets, liabilities, financial position and profit or loss of the company, and that the interim management report includes a fair review of the information required under the Norwegian Securities Trading Act section 5-6 fourth paragraph and the Cyprus Companies Law and Cyprus Transparency Requirements Law No:190(1) 2007 section 10.

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: Q2 2015 report, Q2 2015 presentation

Larnaca, 21 August 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 00

Stig H. Christiansen, Chief Financial Officer
Prosafe Management AS
Phone: +47 478 07 813

Sven Børre Larsen, Departing Chief Financial Officer
Prosafe Management AS
Phone: +47 909 43 673

Cecilie Helland Ouff, Senior Manager Finance and Investor Relations
Prosafe AS
Phone: +47 991 09 467

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