Prosafe SE: Operational update Q4 2017

The fleet utilisation rate in the fourth quarter of 2017 was 36.1 per cent (Q4 2016: 43 per cent) and the fleet utilisation for the year was 38.4 per cent (2016: 43 per cent).

The Safe Scandinavia Tender Support Vessel (TSV) was fully contracted in the quarter for Statoil at Oseberg East with a firm contract period until the end of June 2018.

Safe Caledonia commenced a contract for Total in the UK in mid-May 2017 and was on contract until late October 2017. The vessel is now laid-up in the UK.

Safe Notos commenced a three-year and 222-day contract for Petrobras on 7 December 2016 and was fully contracted in the quarter.

Safe Boreas commenced a 13-month contract for Statoil at the Mariner installation in the UK in early August. In addition, Statoil can exercise six one-month options for Safe Boreas. The vessel was fully contracted in the quarter.

Safe Concordia, Safe Zephyrus, Regalia, Safe Bristolia and Safe Astoria were idle in the quarter. Safe Concordia is laid-up in Curacao. Safe Zephyrus, Regalia and Safe Bristolia are laid-up in Norway, while Safe Astoria is laid-up in Indonesia.

Safe Zephyrus has a 12-month firm contract with Statoil with commencement mid-May 2018.

Prosafe remains focussed on its fleet high-grading strategy. Prosafe continues to work with COSCO (Qidong) Offshore Co. Ltd (COSCO) to find a workable commercial solution for the three completed vessels that currently reside in COSCO's Qidong shipyard in China.

The Safe Eurus is in a preserved, strategic stacking mode and negotiations continue with COSCO to find a workable commercial solution. Consistent with previous quarters, the company has accrued for lay-up cost for Safe Eurus, 50 percent of such cost to be paid on delivery and the remaining 50 percent after delivery, in accordance with the agreement with COSCO.

The standstill agreement between Prosafe and COSCO relating to Safe Nova and Safe Vega has recently been extended until 20 April 2018. Prosafe remains in negotiations with COSCO and related parties for these vessels. If no agreement is reached, Prosafe has the right to cancel the new-build contracts for Safe Nova and Safe Vega due to delay, and claim repayment of the instalments paid including interest of approx. USD 60 million in total. The repayment claim is secured by a refund guarantee from Bank of China.

Court proceedings in the Westcon dispute regarding the TSV Safe Scandinavia commenced on 22 August 2017. The ruling is expected by early March 2018.

Prosafe is a leading owner and operator of semi-submersible accommodation vessels. The company is headquartered in Larnaca, Cyprus and listed on the Oslo Stock Exchange with ticker code PRS. For more information, please refer to www.prosafe.com

Larnaca, 22 January 2018
Georgina Georgiou, General Manager
Prosafe SE


For further information, please contact:

Stig Harry Christiansen, Deputy CEO and CFO
Prosafe Management AS
Phone: +47 51 64 25 17


Cecilie Helland Ouff, Senior Manager Finance and Investor Relations
Prosafe AS
Phone: +47 51 64 25 20 / +47 991 09 467