Prosafe SE: Second quarter and first half 2018 report - Prosafe transformed as market indicators turn positive

EBITDA for the second quarter amounted to USD 57.1 million (USD 26.4 million).  Higher EBITDA is mainly due to better utilisation, higher average day rates, cost control and the revenue adjustment relating to IFRS 15 (USD 8.7 million). A transforming agreement was reached with Cosco and majority lenders, which will significantly enhance Prosafe's fleet and market position as well as financial flexibility in the years ahead. 

Jesper K. Andresen, Prosafe's CEO states, "This has been an eventful quarter. We have been awarded several contracts and extensions recently and we are observing further positive signs in the market place. In addition, we have reached a transforming agreement with Cosco and our lenders which will allow us to transform our fleet in line with market developments while maintaining an improved financial situation and flexibility. In sum, this will enable us to manage the company operationally and financially in an optimal way in the years ahead."

Recent highlights

• Transforming agreement with Cosco and majority of lenders reached in early August
• Improved utilisation in Q2 of 45.8 per cent (38.5 per cent) with continued good operating performance in the quarter
• EBITDA of USD 57.1 (26.4) million reflecting higher utilization and cost control
• Improved cash flow from operations in Q2 at USD 43.5 million (USD 19.1 million)
• In early July, Aker BP awarded Prosafe a contract for Safe Scandinavia to provide accommodation support in Norway with a firm period of seven months plus eight one-month options
• Equinor exercised the first two of six one-month options, thereby extending Safe Boreas' operational period through to early November 2018
• Prosafe was awarded a contract by MODEC for the provision of the Safe Concordia to support their FPSO operations in Brazil with a firm period of 200 days
• BP extended the charter for Safe Caledonia at Clair Ridge by one month, with her firm operational period now through to end November
• Prosafe won further work for Safe Swift in the Mediterranean Sea from mid June till late July
• In April, Westcon appealed the court judgement which was made in favour of Prosafe. Prosafe has also appealed and will aim to maintain or improve on the result.

A complete version of the Q2 2018 earnings release is attached and can be downloaded from www.prosafe.com and www.newsweb.no

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

23 August 2018
The Board of Directors of Prosafe SE

Attachments:
Q2 2018 report
Q2 2018 presentation

For further information, please contact:

Jesper K. Andresen, CEO
Phone: +47 907 65 155

Stig Harry Christiansen, Deputy CEO and CFO
Phone: +47 478 07 813