Back to Disclosures

November 05, 2015

Prosafe SE : Third quarter 2015 results

Operating profit for the third quarter came to USD 71.3 million and net profit amounted to USD 53.2 million. Utilisation of the vessels was 81 per cent.

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

Operating profit for the third quarter amounted to USD 71.3 million (USD 93 million). Depreciation increased to USD 26.3 million (USD 16.6 million), mainly due to recent completion of capital expenditure projects, including the new build Safe Boreas.

Net financial costs amounted to USD 15.6 million (USD 17.7 million). Capitalised interest costs relating to new builds and projects equalled USD 4.8 million (USD 1.9 million).

Net profit equalled USD 53.2 million (USD 67.4 million), corresponding to diluted earnings per share of USD 0.23 (USD 0.29).

Total assets at 30 September amounted to USD 2 342 million (USD 1 769 million). Net interest-bearing debt equalled USD 1 222.7 million (USD 773.3 million), while the book equity ratio declined to 33.2 per cent (41.1 per cent).

Utilisation of the vessels was 81 per cent (96 per cent).

Regalia, Safe Bristolia and Safe Boreas were fully contracted in the North Sea during the quarter. Safe Caledonia commenced on contract on the UKCS in early July 2015. Safe Concordia was on contract in Brazil throughout the quarter.

Safe Regency, Safe Lancia, Safe Hibernia and Safe Britannia were fully contracted in Mexico throughout the quarter. Safe Britannia's charter was extended until the end of December 2015. Prosafe has been informed that Pemex payment terms will be up to 180 days until further notice from September 2015.

Safe Astoria completed her contract at the Malampaya facility with Shell Philippines in early September, and was on transit dayrate until mid-September. Safe Astoria is now located in Batam, Indonesia, undergoing minor works.

Jasminia remained off-hire and is located offshore Mexico.

The Board of Directors reaffirms the long-term dividend policy as described in the Q3 2014 report.

However, in light of the near term reduction in industry activity levels, the Board has decided to temporarily suspend dividend payments. The Board believes that this will be beneficial for the company, both from a commercial, financial and strategic perspective, and it will improve financial robustness and optionality.

New builds and projects
Construction of the new builds is progressing within the timeframes previously communicated.

The conversion of Safe Scandinavia to a tender support vessel continued during the third quarter. The vessel is expected to commence operations offshore at Oseberg East for Statoil towards the end of the fourth quarter of 2015.

With continued low and highly uncertain oil prices and E&P companies' capital expenditure being under pressure, the oil and gas services market remains challenging. However, cost reductions in the E&P sector are expected to contribute to more projects becoming economically viable. This, combined with continued focus on asset integrity and maintenance, could create future opportunities.

Tendering activity for near term accommodation work has slowed down, but medium term opportunities are progressing with the oil companies beginning to demonstrate higher activity levels from 2018 onwards.

Prosafe is well placed in this competitive landscape, with a high quality and versatile fleet and an unmatched operational track record in respect of accommodation operations worldwide.

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

Attachment: Q3 2015 report

Larnaca, 5 November 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 51 64 25 81

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.

Q3 2015 report