Prosafe SE: Second quarter 2023 results
(Figures in brackets refer to the corresponding period of 2022.
EBITDA for the first quarter was negative USD 9.8 million, mainly caused by a lower utilisation rate with three vessels in operation in Brazil for the whole or parts of the quarter, and costs related to new contract preparations on Safe Concordia and Safe Notos. Prosafe observes a significant increase in tender activity and awards for 2024 and beyond with improved earnings, utilisation and increased day rates.
Key events
Operations, HSSE and backlog
- Q2 2023 utilisation of 33.1 (Q2 2022: 81.0) per cent, three out of seven vessels operating during the quarter
- Safe Zephyrus successfully deployed in Brazil from 30 April
- Safe Concordia on hire in US Gulf of Mexico from 9 August
- Safe Notos compliance work completed and back in operation from 14 June
- Good operating performance on all vessels
- Backlog of USD 299 million (Q2 2022: USD 300 million) at quarter end
Q2 financials
- Revenues of USD 21.0 million (Q2 2022: USD 60.9 million) and EBITDA of negative USD 9.8 million (Q2 2022: positive USD 22.8 million)
- Earnings decreased compared to Q2 2022 due to lower utilisation and contract preparations
- Cash flow from operations of negative USD 7.5 million (Q2 2022: positive USD 0.4 million), negatively impacted by lower operating result
- Capex of USD 12.4 million and capitalised mobilisation cost of USD 2.0 million
- Raised USD 28 million in net proceeds from private placement of new shares
- Liquidity of USD 75.2 million (Q2 2022: USD 57.6 million) at end of quarter
Market and outlook
- Favourable medium- and long-term demand outlook
- Weak 2023 North Sea market with one active high specification semi due to lack of commissioning work in Norway and larger UK maintenance and modification work, potentially due to windfall tax
- Strong and improving demand in Brazil and the Gulf of Mexico throughout 2023
- Significant increase in tender activity and awards for 2024 and beyond with four new Petrobras tenders in Brazil and recent contract awards in the North Sea, Africa and Australia further tightening supply
- Significant increase in day rates seen on latest Brazil tenders
- Additional tenders expected in the UK North Sea and Brazil for contract start in 2024 and 2025
- Liquidity impacted by the current North Sea activity level and capital expenditure plus mobilisation spend for new contracts in Brazil and US Gulf of Mexico
CEO comment
Reese McNeel, CEO (Interim) says, “Q2 was a very active quarter both operationally and for the organisation. Safe Zephyrus started its 650-day contract with Petrobras and Safe Concordia completed its contract preparations and started its contract in August. We were also very pleased to have raised capital to support the rig mobilisations and to have put in place a new management team.
We have seen substantially increased tender activity in the past months across all regions for 2024 and beyond. With significant investments, a new management team and improved outlook, we expect improved earnings, utilisation and increased day rates to come.”
Presentation
Reese McNeel, CEO (Interim) will on 17 August 2023 at 10:00 a.m. CEST present the results in an audiocast that can be followed live via web streaming at https://wwww.prosafe.com
It will be possible to ask questions during the presentation by using the Q&A tool embedded in the audiocast. 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 Q2 2023 earnings release and the Q2 2023 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, 17 August 2023
Prosafe SE
For further information, please contact:
Reese McNeel, CEO (Interim)
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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