Prosafe SE

Earnings Release • May 10, 2023

Prosafe SE: First quarter 2023 results

Prosafe SE: First quarter 2023 results

(Figures in brackets refer to the corresponding period in 2022.)

EBITDA for the first quarter was negative USD 6.4 million, mainly driven by

lower utilization with two vessels operating in Brazil during the quarter and

costs related to contract preparations for new contracts in Brazil and the US

Gulf of Mexico. The demand outlook in Prosafe's core markets is favourable from

2024 and onwards, and a significant tightening of the market balance for high

end vessels is expected.

Operations, HSSE and backlog

* Q1 2023 utilisation of 28.6 (68.1) per cent, two out of seven vessels

operating during the quarter

* Good operating and HSSE performance on all vessels

* Backlog of USD 316 million (USD 117 million) at quarter end

Q1 financials

* Revenues of USD 14.3 million (USD 35.5 million) and EBITDA of negative USD

6.4 million (positive USD 4.8 million)

* Earnings decreased compared to Q1 2022 due to lower utilization and contract

preparations

* Cash flow from operations of USD 6.2 million (negative USD 0.4 million),

positively impacted by working capital release as vessels came off contracts

* Capex of USD 14.8 million and capitalized mobilization cost of USD 4.0

million

* Liquidity of USD 74.6 million (USD 64.7 million) at end of quarter

Market and outlook

* Slow 2023 North Sea market as expected

* Tender activity for 2024 and 2025 increased with additional 1 to 2 tenders

expected in the North Sea and a minimum of 2 tenders in Brazil expected for

2024

* Favourable demand outlook in core markets, with multiple FPSOs coming on

stream in Brazil, an all-time high number of new Plans for Development and

Operation in Norway, increased maintenance activity in the UK as well as

increased oil and gas activity globally

* 2023 liquidity is impacted by the low activity in the North Sea and capital

expenditure plus mobilization spend for new contracts in Brazil and US Gulf

of Mexico (GoM)

* Additional capital will be required to mitigate a covenant breach and

potential liquidity shortfall from Q3/Q4 2023. The annual general meeting

has granted the board an authorization to raise additional capital and the

board is confident that additional capital can be raised ahead of the

potential shortfall in Q3

CEO comment

"We had high activity in the quarter related to the successful mobilization of

Safe Zephyrus to Brazil, ramp-up of contract preparation activities on Safe

Concordia and readying Safe Notos for the upcoming off-hire period. We are

particularly pleased that Safe Zephyrus stared its 650-day contract with

Petrobras as planned on 1 May 2023," says Jesper K. Andresen, CEO of Prosafe.

"We continue to see a soft North Sea market in 2023 with limited prospects for

Safe Caledonia and Safe Boreas. While additional contract opportunities cannot

be ruled out, we do not expect significant earnings from the two units this

year. For 2024 and beyond, activity is increasing with several additional

tenders in the North Sea and expectations of further contract opportunities in

Brazil for 2024 and beyond in the coming months. Long-term, we are optimistic on

the outlook and see significant potential for a market tightening and increased

day rates."

Presentation

Jesper K. Andresen, CEO and Reese McNeel, CFO will on 11 May 2023 at 10:00 a.m.

CEST 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 (http://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 webcast will be made available on Prosafe's

website shortly after.

A complete version of the Q1 2023 earnings release and the Q1 2023 presentation

is attached and can be downloaded from https://www.prosafe.com and

www.newsweb.no (http://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 (http://www.prosafe.com)

Stavanger, 10 May 2023

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.