Prosafe SE

Earnings Release • May 13, 2015

Prosafe SE : First quarter 2015 results

Prosafe SE : First quarter 2015 results

Operating profit for the first quarter came to USD 55.4 million and net profit

amounted to USD 27.0 million. The utilisation of the fleet was 80 per cent in

the fourth quarter. An interim dividend of NOK 0.36 per share was resolved.

Operations

Utilisation of the fleet was 80 per cent in the first quarter of 2015 (76 per

cent in the  first quarter of 2014).

Safe Caledonia, Regalia and Safe Astoria were fully utilised during the

quarter.

In the first quarter, the utilisation rate for the five vessels operating in

Mexico was 93 per cent.  During this quarter, Prosafe was also awarded contract

extensions in Mexico with a total net value of USD 17 million.

Jasminia has been off hire since the end of February 2015, and operations are

expected to recommence during the second quarter of 2015. Hibernia is currently

performing the Jasminia contract. Safe Britannia has been awarded a contract

extension until the end of August 2015 at a lower day rate. Safe Britannia will

be off-hire for approximately one month in the second quarter to undergo a

planned DP upgrade.  Safe Lancia and Safe Regency are contracted until the end

of 2016 and the end of 2017, respectively.

Safe Concordia is working on a three-year contract with Petrobras in Brazil. In

mid-February, the vessel went to the Maua shipyard in Brazil, to undergo a five-

year special periodic survey and upgrade, which is expected to be completed in

late May.

Safe Scandinavia was on contract with Premier Oil at the Solan field in UK until

the end of February.  In March the vessel arrived at the Westcon Yard in

Ølensvåg, Norway, where she will be converted to a Tender Support Vessel.

Contract commencement for Statoil at Oseberg Øst is expected to be during the

third quarter of 2015.

Safe Bristolia was at Hanøytangen shipyard in Norway for repair work in the

first quarter.

In 2013, Prosafe was awarded a 15-month contract for Regalia by Talisman

Sinopec, which commenced late August 2014. Talisman Sinopec has decided to

sublet Regalia to Shell UK in the period from late March until early August

Safe Caledonia is scheduled to commence a contract for BP in July, and Safe

Astoria has a firm contract in the Philippines until June 2015.

Safe Boreas is currently in the Stavanger region and will be on contract from

mid-May 2015.  The vessel is ready to commence operations in respect of the

hook-up and commissioning of the Edvard Grieg field.  The firm contract period

is six-months, and Lundin Norway has an option to extend the contract period by

two months.

Financials

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

Operating profit for the first quarter amounted to USD 55.4 million (USD 22.9

million).  The increase reflects a combination of a higher average day rate

level and a higher utilisation of the fleet.

Net financial expenses for the first quarter were USD 26.1 million (USD 4

million). This amount includes non-amortised refinancing costs of USD 10 million

relating to the previous loan facility which was refinanced in February 2015.

Change in fair value of currency forwards was USD 5.5 million negative (USD 7.7

million positive).

In accordance with IFRS, interest costs totalling USD 2.7 million (USD 1.7

million) have been allocated to new build and refurbishment projects, and

consequently capitalised as part of the vessel costs.

Net profit amounted to USD 27 million (USD 18.3 million), and earnings per share

were USD 0.11 (USD 0.08).

Total assets at 31 March amounted to USD 2 157.5 million (USD 1 597.5 million),

while the book equity ratio declined to 34.5 per cent (43.9 per cent).  Net

interest-bearing debt stood at USD 977.4 million (USD 728.9 million).

Refinancing

As referred to in the Q4 2014 report, in February 2015, Prosafe entered into a

new USD 1,300 million loan facility for the refinancing of the existing USD

1,100 million and USD 420 million facilities.  The new loan has a seven-year

maturity and an interest rate of 3-month LIBOR plus 1.90 per cent.

Dividend

The Board of Directors resolved to declare an interim dividend equivalent to USD

0.048 per share to shareholders of record as of 21 May 2015.  The shares will

trade ex dividend on 20 May 2015.  The dividend will be paid in the form of NOK

0.36 per share on 3 June 2015.

Outlook

The oil companies' focus on reduced spending and increased cost efficiency has

continued during the quarter.  Demand for assets and services related to

exploration, development and production of oil and gas resources has therefore

remained at a low level.  In the latter part of the period, a positive movement

in the oil price has been observed, and if sustained, could be expected to lead

to a moderate increase in demand for offshore accommodation services.

Tendering activity is currently at a higher level than in the first quarter, and

there is potential for contract awards during the coming months.

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

Attachments: Q1 2015 report, Q1 2015 presentation

Larnaca, 13 May 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 70

Sven Børre Larsen, Chief Financial Officer

Prosafe Management AS

Phone: + 47 51 64 25 30

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.

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