Prosafe SE

Earnings Release • May 26, 2020

Prosafe SE: First quarter 2020 report - Adapting to a new reality

Prosafe SE: First quarter 2020 report - Adapting to a new reality

(Figures in brackets refer to the corresponding period of 2019)

After several years of low activity across the industry, the company has

presented a business plan and a restructuring proposal to lenders which - if

approved as proposed - will result in a sustainable balance sheet. The revised

business plan reflects a new reality in light of Covid-19, structural changes,

oil price collapse, oversupply and anticipated impact on future activity and

performance. Consequently, an impairment of USD 810.5 million was made to the

book value of vessels in the quarter resulting in a negative book equity of USD

858.9 million by the end of the quarter. The company has sufficient liquidity of

USD 184 million at the end of the quarter and continues to operate on a going

concern basis on the assumption that there is justified hope to agree a

sustainable financial solution with lenders.

Recent highlights

* Prosafe implemented Covid-19 plans early to safeguard people and assets, and

this has proven successful both onshore and offshore.

* Total liquidity of USD 183.6 million per Q1 2020. Based on a continuation of

the forbearance arrangement and the deferral of making payment of scheduled

instalments and interests on loans, the company is all else equal able to

stay cash positive well beyond the next 12 months.

* The company has presented a restructuring proposal to lenders that if

approved as proposed, will result in a sustainable balance sheet. The

company has requested an extension to the forbearance arrangement till end

June 2020 to ensure stability and sufficient time to seek agreement with

lenders.

* On 13 February 2020, Prosafe and Floatel International mutually decided to

discontinue the merger process due to financial uncertainty and process

risk.

* In light of Covid-19 and the oil price crash, the company is in commercial

discussions with several clients.

* Fleet utilisation of 32.7 per cent (62.5 per cent) in the quarter.

* Regalia will be marketed for recycling.

* Firm order book of USD 127 million per Q1 2020 (USD 159 million).

* Reported EBITDA was USD 1.1 million (USD 24.1 million positive) in the

quarter. Underlying EBITDA in the quarter adjusted for one-off effects was

USD 2.1 million.

* An impairment of USD 810.5 million made to the book value of vessels and the

book equity was negative by USD 858.9 million as of March 2020.

Jesper K. Andresen, Prosafe's CEO says, "The Covid-19 pandemic and the oil price

collapse since March 2020 have resulted in a dramatic change in market

conditions, economic outlook and ways of living and working. The entire oil and

gas services industry is exposed to a "double Black Swan event", and short-term

planning as well as longer term forecasting is extremely challenging, whilst at

the same time being critical. We are doing our utmost to adapt to a new reality

and aim to arrive at a sustainable financial solution in order to protect values

to the extent possible, and establish a sound basis upon which to create value

in the future from safe and cost efficient operations, commercial performance

and strategic initiatives including consolidation".

A complete version of the Q1 2020 earnings release can be downloaded from

www.prosafe.com (http://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)

26 May 2020

Prosafe SE

For further information, please contact:

Jesper K. Andresen, CEO

Phone: +47 51 65 24 30 / +47 907 65 155

Stig Harry Christiansen, Deputy CEO and CFO

Phone: +47 51 64 25 17 / +47 478 07 813

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act