Prosafe SE: Fourth quarter 2022 results
(Figures in brackets refer to the corresponding period of 2021)
Fourth quarter 2022 EBITDA increased by 94 per cent year-over-year to USD 9.6 million (USD 4.4 million). The fleet utilization was 56.1 per cent. At period end, liquidity was USD 91.6 million (USD 73.9 million).
Operations, HSSE and backlog
- Q4 2022 utilisation of 56.1 (59.3) per cent, five out of seven vessels in operation during the quarter
- Full year utilization of 70.6 per cent, highest since 2014
- Good operating and HSSE performance on all vessels
- Backlog of USD 332 million (USD 126 million) at quarter end
- Signed 650-day Petrobras contract valued at USD 73 million, commencing in May 2023
Q4 financials
- Revenue of USD 38.9 million (USD 29.4 million) and EBITDA of USD 9.6 million (USD 4.4 million)
- Earnings increase compared to Q4 2021 driven by higher day rates
- Cash flow from operations of USD 24.7 million (USD 36.0 million), positively impacted in the quarter by improved working capital as vessels came off contract
- Liquidity of USD 91.6 million (USD 73.9 million) at quarter end
Market and outlook
- Strong improvement in demand and utilisation during 2022. Market utilisation for the most advanced accommodation vessels increased from 30 to 80 per cent in the past year
- Slower 2023 North Sea market expected. This combined with capex and mobilization spend in preparation for new contracts in Brazil and US GoM will negatively impact liquidity during 2023
- Favourable demand outlook in core markets, with an all-time high number of new PDOs in Norway and multiple FPSOs expected to come on stream in Brazil over the next years
- Increased tender activity expected based on ongoing client discussions for 2024 and beyond
CEO comment
“We had high operational activity in the fourth quarter. Safe Boreas, Safe Caledonia and Safe Zephyrus all completed their contracts during the period and were safely demobilised. Backlog increased further as we finalised the 650-day contract for Safe Zephyrus in Brazil,” says Jesper K. Andresen, CEO of Prosafe.
“We believe that 2023 will be weak in the North Sea with limited prospects for Safe Caledonia and Safe Boreas. In contrast, we see increasing activity in 2024 and beyond. Based on discussion with clients, we expect several additional tenders in the North Sea and Brazil for 2024 in the coming months. For the longer term, the company remains optimistic on the outlook and sees significant potential for market tightening and increasing day rates.”
Presentation
Jesper Kragh Andresen, CEO and Reese McNeel, CFO will today at 10:00 a.m. CET present the results at the Hotel Continental, Stortingsgata 24/26, Oslo. The presentation is open to the public and can also be followed live via web streaming at www.prosafe.com
It will be possible to ask questions during the presentation by using the Q&A tool embedded in the webcast. These questions will be answered after the presentation. A replay of the audiocast will be made available on Prosafe’s website shortly after.
A complete version of the Q4 2022 earnings release and the Q4 2022 presentation is attached and can be downloaded from https://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
Stavanger, 28 February 2022
Prosafe SE
For further information, please contact:
Jesper K. Andresen, CEO
Phone: +47 51 65 24 30 / +47 907 65 155
Reese McNeel, CFO
Phone: +47 51 64 25 17 / +47 415 08 186
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.
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