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Prosafe SE: First quarter 2014 results

Operating profit for the first quarter came to USD 22.9 million and net profit
amounted to USD 18.3 million. An interim dividend of NOK 0.95 per share was
resolved. The gross value of the contract backlog amounted to approximately
USD 2.5 bn (incl. options) at the end of the quarter, by far the highest
level ever seen in Prosafe's history.

(Figures in brackets refer to the corresponding period of 2013)

Operating profit for the first quarter amounted to USD 22.9 million (USD 19
million). Utilisation of the fleet was 76 per cent (74 per cent).

Safe Caledonia, Safe Astoria, Safe Concordia, Safe Lancia, Jasminia, Safe
Hibernia, Safe Britannia and Safe Regency were in full operation throughout
the quarter.

Safe Concordia was on contract in Brazil with an average effective day rate in
the quarter of approximately USD 136 000.

Safe Caledonia completed operations for BP on 31 March. The vessel is
currently at Burntisland in the UK for preparatory work before mobilising for
a contract with Nexen in the UK commencing early June 2014.

Regalia completed the planned yard work and a five-year special period survey
(SPS) at Keppel Verolme and commenced operation for Statoil in Norway on 28

Safe Scandinavia remained at the Remontowa yard in Poland undertaking a life
extension refurbishment and a five-year SPS before it commenced a contract
with Statoil in Norway late April 2014.

Safe Bristolia undertook maintenance work at Burntisland in the UK during the
quarter, and commenced a contract with ConocoPhillips in May 2014.

Safe Astoria continued its operation for Swiber in Indonesia throughout the
first quarter. In addition, Prosafe and Swiber have agreed an extension
period of 43 days which commenced early April 2014.

Net financial expenses for the first quarter were USD 4 million (USD 18.6
million). The reduction is mainly related to favourable revaluation of
forward exchange contracts.

Net profit amounted to USD 18.3 million (net loss of USD 0.7 million), and
earnings per share were USD 0.08 (USD 0.00).

Total assets at 31 March amounted to USD 1 597.5 million (USD 1 459.2
million), while the book equity ratio rose to 43.9 per cent (42 per cent).
Net interest-bearing debt stood at USD 728.9 million (USD 608.1 million).

On 28 May 2014 the Board of Directors resolved to declare an interim dividend
equivalent to USD 0.16 per share to shareholders of record as of 6 June 2014.
The shares will trade ex-dividend on 4 June 2014. The dividend will be paid in
the form of NOK 0.95 per share on 18 June 2014.

In May 2014, Prosafe closed a seven-year term loan facility of USD 288 million
for the post-delivery financing of Safe Notos and Safe Eurus, which are under
construction at COSCO (Qidong) Shipyard in China. The facility has an
interest rate of 3-month USD LIBOR plus 2.25 per cent and a repayment profile
of 12 years.

The global accommodation vessel market remains busy. Although the number of
outstanding tenders is lower than at the same point in time last year,
Prosafe is set to continue to grow contract backlog in 2014. As at 31 March
2014, the firm contract backlog amounted to USD 1,192 million, USD 2,509
million including clients' extension options, compared to USD 936 million,
USD 1,098 million including clients' extension options, at 31 March 2013.

Over the past few years there has been a strong growth in demand related to
hook-up and commissioning of new production installations in the North Sea.
The activity level in this area is set to remain high for the next couple of
years, but based on the oil companies' announced plans and schedules, the
pace of new developments seems to be slowing down beyond 2016. However, with
an aging infrastructure combined with a continuous drive for higher recovery
rates, demand for accommodation vessels in the North Sea should remain at a
robust level in the foreseeable future.

As a result of increased activity in shallow waters in Mexico, the market has
developed positively over the past few years. This development is expected to
continue based on the number of drilling jack-ups scheduled to enter the
market. Recently introduced reforms are expected to open up for international
oil companies in Mexican waters and as such are supportive for the long-term
outlook in deep water areas.

Demand in the Brazilian market continues to require accommodation vessels with
Petrobras having increased its requirements from zero accommodation vessels
under contract in 2010, to nine vessels currently under contract. So far, all
the vessels are deployed in the Campos basin, but it is anticipated that
demand will also emerge from other areas in the future.

The strong demand growth in Brazil has attracted new suppliers. This has
resulted in a competitive and fragmented market (the nine contracted vessels
are owned by eight different companies). It is therefore difficult not only
to realise economies of scale and establish efficient cost structures, but
also to achieve the desired level of return in the Brazilian market despite
the strong demand growth. Although there are signs of increasing day rates,
it is likely that returns in the Brazilian market remain below the returns in
other core markets over the next few years.

Prosafe is the world's leading owner and operator of semi-submersible
accommodation/service rigs. Operating profit reached USD 245.1 million in
2013 and net profit was USD 199.1 million. The company operates globally,
employs 610 people and is headquartered in Larnaca, Cyprus. Prosafe is listed
on the Oslo Stock Exchange with ticker code PRS. For more information, please
Attachments: Q1 2014 report, Q1 2014 presentation
Larnaca, 28 May 2014
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 81

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

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

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

Q1 2014 presentation
Q1 2014 report


This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Prosafe SE via Globenewswire


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