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Prosafe SE: First quarter 2016 results

Operating profit for the first quarter of 2016 amounted to USD 21.9 million
and net loss was USD 1.8 million. Utilisation of the fleet was 37 per cent.


Utilisation of the fleet was 37 per cent in the first quarter of 2016 (80 per
cent in the first quarter of 2015).

Safe Scandinavia Tender Support Vessel ("TSV") commenced a contract in
mid-March in Norway with a firm period through to July 2018. Drilling support
operations commenced in early April. The mobilisation fee of USD 12 million
for the TSV was recognised as income in the first quarter.

Safe Zephyrus was delivered from the Singapore construction yard in the first
quarter of 2016 and commenced transit to the North Sea. The vessel is
scheduled to commence its first contract in Norway early in Q3 2016.

Safe Notos was delivered from COSCO, (Qidong) Co., Ltd. in the first quarter
of 2016 and is currently in international anchorage offshore Singapore. The
vessel was delivered to carry out a 4.5 year contract of ca. USD 145 million
pursuant to a letter of intent which was subsequently cancelled.

Safe Zephyrus and Safe Notos are not included in the first quarter utilisation
ratio above.

Safe Boreas commenced a contract in the UK in mid-March.

Safe Concordia and Safe Caledonia were fully contracted during the quarter.

Regalia was off-hire in the quarter and will commence a contract in the UK
during May.

Safe Bristolia was completing class renewals in the yard during the quarter
and is scheduled to commence a contract in the UK during May.

Safe Astoria was off-hire in the quarter and is currently cold-stacked in
Batam, Indonesia.

Jasminia and Safe Britannia were off-hire during the first quarter and Safe
Hibernia came off contract mid-February. Based on a strategic fleet review,
Prosafe has decided to scrap these three vessels.

The contracts for Safe Lancia and Safe Regency were suspended in mid-March
2016 and the vessels remained in Mexico in the first quarter. Safe Lancia is
being prepared for cold-stacking in the US. Safe Regency is being mobilised
to a suitable lay-up location.

Prosafe and Statoil (U.K.) Ltd agreed to re-phase the contract for the Mariner
Project on the UK Continental Shelf of the North Sea from 2016 into 2017. A
re-phasing charge of USD 30 million has been recognised as income in the
first quarter 2016.

The Company has been working to optimise fleet deployment and utilisation in a
situation where the fleet renewal strategy is being completed while the
market is historically soft and contracts are being suspended. Examples of
these are deferred deliveries, seller's credit and the replacement of Safe
Boreas for Safe Notos for Talisman in the UK. In addition, the Company has
decided to scrap three of its oldest units, respectively Jasminia, Safe
Hibernia and Safe Britannia, and to cold stack other units starting with Safe


(Figures in brackets refer to the corresponding period of 2015)

Operating profit for the first quarter amounted to USD 21.9 million (USD 55.4
million). This decline reflects the lower utilisation of the fleet in poor
market conditions.

Net financial expenses for the first quarter were USD 20.3 million (USD 26.1
million). Interest expenses have increased mainly due to higher
interest-bearing debt.

Net loss amounted to USD 1.8 million (net profit of USD 27 million), and
earnings per share were USD 0.01 negative (USD 0.11 positive).

Total assets at 31 March amounted to USD 2,630.8 million (USD 2,157.5
million), while the book equity ratio declined to 25.9 per cent (34.5 per
cent). Net interest-bearing debt stood at USD 1,650.7 million (USD 977.4


Despite a recent increase in oil price, general market uncertainty remains and
bidding activity is low. Clients remain focused on cost reduction and cash
preservation. Prosafe therefore maintains a cautious view in the near and
medium term and anticipate a possible upturn from 2018.

Financial restructuring

Prosafe is in an ongoing dialogue with the Company's key stakeholders,
including the main shareholders, bondholders, bank lenders and yards, and the
Company is currently working with stakeholders and advisors to evaluate
alternatives to improve the financial situation. The Company has obtained a
reduced minimum liquidity bank covenant of USD 20 million until the end of
the third quarter 2016. This temporary reduced level is applicable to both
the USD 1.3 billion facility and the USD 288 million newbuild facility. In
addition, the Company will utilize the 2nd skipped payment option that was
granted by the banks in the previous amendment process closed around year-end
2015. Further amendments to the bank and bond agreements will, however, be
required in order to secure a robust financial foundation and to safeguard
and further strengthen Prosafe's market leading position in the industry. The
dialogue is constructive and the Company intends to communicate its updated
financial plan during the second quarter of 2016.

Reference is also made to note 5 to the financial statements.

Subsequent events

The Board of Prosafe has appointed Stig H. Christiansen as the new interim
Chief Executive Officer ("CEO") for Prosafe Management AS. He replaces Karl
Ronny Klungtvedt who has agreed to step down. Mr Christiansen will continue
to serve as the Chief Financial Officer of Prosafe Management AS in addition
to his position as acting CEO.

In due course, the Board will start a recruitment process for a new permanent
CEO evaluating both internal and external candidates for the position.

Prosafe is the world's leading owner and operator of semi-submersible
accommodation vessels. The company operates globally, employs 850 people and
is headquartered in Larnaca, Cyprus. Prosafe is listed on the Oslo Stock
Exchange with ticker code PRS. For more information, please refer

Attachment: Q1 2016 report
Larnaca, 12 May 2016
Georgina Georgiou, General Manager
Prosafe SE

For further information, please contact:

Stig Harry Christiansen, Acting CEO and CFO
Prosafe Management AS
Phone: +47 51 64 25 17 / +47 478 07 813

Cecilie Helland Ouff, Senior Manager Finance and Investor Relations
Prosafe AS
Phone: +47 51 65 25 20
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.

Prosafe Q1 2016 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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