Prosafe SE

Earnings Release • Feb 4, 2016

Prosafe SE : Fourth quarter 2015 and full year results

Prosafe SE : Fourth quarter 2015 and full year results

Operating profit for 2015 amounted to USD 167 million and net profit was USD

85.6 million. Utilisation of the fleet was 70 per cent. Prosafe is taking

proactive measures by renewing and updating its fleet, strengthening the balance

sheet, increasing its financial flexibility and securing liquidity buffers.

Financials

(Figures in brackets refer to the corresponding period of 2014)

Full year 2015

Operating profit for 2015 amounted to USD 167 million (USD 248.3 million) and

utilisation of the fleet was 70 per cent (87 per cent).

Net financial expenses for 2015 amounted to USD 70.9 million (USD 57 million).

The increase results mainly from fair value adjustments of currency forward

contracts and higher interest expenses. In accordance with IFRS, interest costs

totalling USD 12.8 million (USD 7.9 million) have been allocated to new build

and construction projects and consequently capitalised as part of the vessel

costs.

Net profit for 2015 equalled USD 85.6 million (USD 178.8 million) and diluted

earnings per share were USD 0.36 (USD 0.76).

Fourth quarter 2015

Utilisation of the fleet was 62 per cent (92 per cent). Operating profit for the

fourth quarter amounted to USD 17.5 million (USD 77.4 million).

Jasminia remained off-hire in the quarter. An impairment of USD 9.4 million

relating to Jasminia has been charged to the accounts in the fourth quarter. The

net book value of the vessel is zero as at 31 December 2015.

A fee of USD 4 million relating to the cancelled towage of Safe Zephyrus was

expensed in Q4 2015. Safe Zephyrus was delivered at the end of January 2016, and

the final instalment was reduced by USD 30 million. This represents a seller's

credit from the yard, to be repaid in a single payment on or before 15 June

2017. Safe Zephyrus is scheduled to commence a contract in Norway early Q3 2016.

Further in Q4 2015, non recurring items amounting to USD 3.4 million were

charged and USD 2.25 million provided for relating to settlement of certain

contractual matters and an operational incident resulting in the loss of an

anchor wire.

Safe Boreas was on contract in Norway until mid-December, and Regalia was on

contract in UK until late November.

Safe Bristolia was off contract throughout the quarter, and is now in a Gdansk

yard for its special periodic survey (SPS).

Safe Astoria is located in Batam, Indonesia, where it has undergone minor works

in the fourth quarter.

Safe Concordia, Safe Caledonia, Safe Regency, Safe Lancia, Safe Hibernia and

Safe Britannia were fully contracted throughout the quarter.

The Safe Hibernia contract has been extended until the end of Q1 2016. Safe

Britannia ended its contract at the end of December 2015, but the vessel remains

in operational readiness mode in anticipation of new assignments.

Mechanical completion and commissioning of Scandinavia TSV is finalised. As

stated in the recent operational update, during the acceptance testing certain

specifications showed a need for some adjustments, which are expected to be

completed in the near future. Once the testing is complete, the vessel will

start mobilising to Oseberg East.

Net financial costs amounted to USD 22.2 million (USD 25.3 million). Net loss

equalled USD 6.8 million (net profit of USD 51 million), corresponding to

diluted earnings per share of USD 0.03 negative (USD 0.22 positive).

Total assets at 31 December amounted to USD 2 323 million (USD 1 817 million).

Net interest-bearing debt equalled USD 1 189.9 million (USD 707.7 million), and

the book equity ratio was 36.6 per cent (41.2 per cent).

Share issue

On 3 December 2015, the company raised NOK 590 million in gross proceeds through

a private placement of 23,597,300 new shares, each with a par value of EUR 0.25

at a subscription price of NOK 25 per share, representing a premium of 4.6% on

the closing price of the day.

The proceeds from the private placement have strengthened the company's balance

sheet and liquidity position.

Amended credit facilities

The company's USD 1,300 million and USD 288 million credit facilities have been

amended. The amendments provide increased operational and financial flexibility.

Fleet renewal

The company is taking delivery of the Safe Notos in February 2016 as part of its

fleet renewal strategy. In connection with the delivery, Prosafe will draw USD

144 million of its committed credit facility. The final delivery instalment will

be reduced by USD 29 million, by way of a seller's credit from Cosco (Qidong)

Offshore Co., Ltd., repayable in a single payment by 31 December 2016, which

results in increased liquidity for the company.

Outlook

The oil and gas services market remains challenging in the short and medium term

with continued volatile oil price and reductions in E&P capital expenditure.

Accordingly, Prosafe is taking proactive measures by renewing and updating its

fleet, strengthening the balance sheet, increasing its financial flexibility and

securing liquidity buffers. In addition, Prosafe continues to focus on cost

optimisation and reduction.

The longer term outlook for offshore oil and gas remains positive with activity

expected to improve in the medium to long term.

Prosafe continues to actively pursue suitable opportunities that, if successful,

will add to the company's order book.

Prosafe is the world's leading owner and operator of semi-submersible

accommodation vessels. Operating profit reached USD 167 million in 2015 and net

profit was USD 85.6 million. 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 to

www.prosafe.com

Attachments: Q4 2015 report, Q4 2015 presentation

Larnaca, 4 February 2016

Georgina Georgiou, General Manager

Prosafe SE

For further information, please contact:

Karl Ronny Klungtvedt, Chief Executive Officer

Prosafe Management AS

Phone: + 47 51 64 25 00

Stig Harry Christiansen, Chief Financial Officer

Prosafe Management AS

Phone: +47 478 07 813

Cecilie Helland Ouff, Senior Manager Finance and Investor Relations

Prosafe AS

Phone: +47 991 09 467

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1983639]