Prosafe SE

Earnings Release • Nov 5, 2015

Prosafe SE : Third quarter 2015 results

Prosafe SE : Third quarter 2015 results

Operating profit for the third quarter came to USD 71.3 million and net profit

amounted to USD 53.2 million. Utilisation of the vessels was 81 per cent.

Financials

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

Operating profit for the third quarter amounted to USD 71.3 million (USD 93

million). Depreciation increased to USD 26.3 million (USD 16.6 million), mainly

due to recent completion of capital expenditure projects, including the new

build Safe Boreas.

Net financial costs amounted to USD 15.6 million (USD 17.7 million). Capitalised

interest costs relating to new builds and projects equalled USD 4.8 million (USD

1.9 million).

Net profit equalled USD 53.2 million (USD 67.4 million), corresponding to

diluted earnings per share of USD 0.23 (USD 0.29).

Total assets at 30 September amounted to USD 2 342 million (USD 1 769 million).

Net interest-bearing debt equalled USD 1 222.7 million (USD 773.3 million),

while the book equity ratio declined to 33.2 per cent (41.1 per cent).

Operations

Utilisation of the vessels was 81 per cent (96 per cent).

Regalia, Safe Bristolia and Safe Boreas were fully contracted in the North Sea

during the quarter. Safe Caledonia commenced on contract on the UKCS in early

July 2015. Safe Concordia was on contract in Brazil throughout the quarter.

Safe Regency, Safe Lancia, Safe Hibernia and Safe Britannia were fully

contracted in Mexico throughout the quarter. Safe Britannia's charter was

extended until the end of December 2015. Prosafe has been informed that Pemex

payment terms will be up to 180 days until further notice from September 2015.

Safe Astoria completed her contract at the Malampaya facility with Shell

Philippines in early September, and was on transit dayrate until mid-September.

Safe Astoria is now located in Batam, Indonesia, undergoing minor works.

Jasminia remained off-hire and is located offshore Mexico.

Dividend

The Board of Directors reaffirms the long-term dividend policy as described in

the Q3 2014 report.

However, in light of the near term reduction in industry activity levels, the

Board has decided to temporarily suspend dividend payments. The Board believes

that this will be beneficial for the company, both from a commercial, financial

and strategic perspective, and it will improve financial robustness and

optionality.

New builds and projects

Construction of the new builds is progressing within the timeframes previously

communicated.

The conversion of Safe Scandinavia to a tender support vessel continued during

the third quarter. The vessel is expected to commence operations offshore at

Oseberg East for Statoil towards the end of the fourth quarter of 2015.

Outlook

With continued low and highly uncertain oil prices and E&P companies' capital

expenditure being under pressure, the oil and gas services market remains

challenging. However, cost reductions in the E&P sector are expected to

contribute to more projects becoming economically viable. This, combined with

continued focus on asset integrity and maintenance, could create future

opportunities.

Tendering activity for near term accommodation work has slowed down, but medium

term opportunities are progressing with the oil companies beginning to

demonstrate higher activity levels from 2018 onwards.

Prosafe is well placed in this competitive landscape, with a high quality and

versatile fleet and an unmatched operational track record in respect of

accommodation operations worldwide.

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

accommodation/service rigs. Operating profit reached USD 248.3 million in 2014

and net profit was USD 178.8 million. The company operates globally, employs

800 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

Attachment: Q3 2015 report

Larnaca, 5 November 2015

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 H. Christiansen, Chief Financial Officer

Prosafe Management AS

Phone: + 47 51 64 25 81

Cecilie Helland Ouff, Senior Manager Finance and Investor Relations

Prosafe AS

Phone: +47 51 64 25 20

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1964359]