AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

Prosafe SE

Investor Presentation Feb 9, 2015

3718_rns_2015-02-09_52d6323f-9119-494e-9d12-311eb150ba69.pdf

Investor Presentation

Open in Viewer

Opens in native device viewer

9 February 2015

Q4 2014 results

Disclaimer

All statements in this presentation other than statements of historical fact are forward-looking statements, which are subject to a number of risks, uncertainties, and assumptions that are difficult to predict and are based upon assumptions as to future events that may not prove accurate. Certain such forward-looking statements can be identified by the use of forwardlooking terminology such as "believe", "may", "will", "should", "would be", "expect" or "anticipate" or similar expressions, or the negative thereof, or other variations thereof, or comparable terminology, or by discussions of strategy, plans or intentions. Should one or more of these risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this presentation as anticipated, believed or expected. Prosafe does not intend, and does not assume any obligation to update any industry information or forward-looking statements set forth in this presentation to reflect subsequent events or circumstances.

Agenda

  • Recent developments
  • Financial results
  • Operations/projects
  • Outlook
  • Appendix

Recent developments

  • Q4 utilisation of 92 per cent
  • Safe Bristolia incident affects results negatively –still the best 4th quarter operating result ever
  • Safe Boreas delivered from yard in January – currentlyin transit to Norway

  • Oil price drop leading to increased market uncertainty

  • Cost efficiency measures being implemented
  • New USD 1,300 million bank facility entered into at favourableterms

Agenda

Recent developments

Financial results

  • Operations/projects
  • Outlook
  • Appendix

Income statement

S
(
U
d
i
d
f
i
i
U
D
i
l
l
i
)
t
n
a
e
g
r
e
s
n
m
o
n
u
u
Q
4
1
4
Q
3
1
4
Q
4
1
3
2
0
1
4
2
0
1
3
O
i
t
p
e
r
a
n
g
r
e
e
n
e
s
v
u
1
4
1
5
1
6
9
5
1
3
4
8
4
8
5
7
2
3
5
5
O
i
t
p
e
r
a
n
g
e
x
p
e
n
s
e
s
(
)
6
0
2
(
)
5
9
9
(
)
5
3
4
(
)
2
3
6
1
(
)
2
1
6
9
E
B
I
T
D
A
9
3
9
1
0
9
6
8
1.
4
3
1
2
6
3
0
6
6
D
i
i
t
e
p
r
e
c
a
o
n
(
1
6
)
5
(
1
6
6
)
(
1
4
4
)
(
6
4
3
)
(
6
1.
)
5
O
i
f
i
t
t
p
e
r
a
n
g
p
r
o
4
7
7
9
3
0
6
0
7
2
4
8
3
2
4
5
1
I
i
t
t
n
e
r
e
s
n
c
o
m
e
0
0
0
2
0
1
0
3
1.
3
I
t
t
n
e
r
e
s
e
x
p
e
n
s
e
s
(
)
1
0
2
(
)
1
0
0
(
)
8
4
(
)
3
7
3
(
)
3
4
2
O
f
h
i
i
l
i
t
t
e
r
n
a
n
c
a
e
m
s
(
)
1
1
5
(
)
9
7
1.
4
(
)
2
0
0
(
)
8
5
N
f
i
i
l
i
t
t
e
n
a
n
c
a
e
m
s
(
)
2
5
3
(
)
1
7
7
(
)
6
9
(
)
5
0
7
(
)
4
1.
4
P
f
i
b
f
t
t
r
o
e
o
r
e
a
x
e
s
5
2
1
5
7
3
6
0
1
1
9
1.
3
2
0
3
7
T
a
e
s
x
(
)
1.
1
(
)
9
7
(
)
0
4
(
)
1
2
5
(
)
4
6
N
f
i
t
t
e
p
r
o
5
1.
0
6
4
7
5
9
7
1
8
8
7
1
9
9
1
S
E
P
0
2
2
0
2
9
0
2
5
0
6
7
0
8
5
D
i
l
d
E
P
S
t
u
e
0
2
2
0
2
9
5
0
2
0
7
6
5
0
8

Operating revenues

S
(
U
D
i
l
l
i
)
m
o
n
Q
4
1
4
Q
3
1
4
Q
4
1
3
2
0
1
4
2
0
1
3
C
h
i
t
a
r
e
r
n
c
o
m
e
1
3
7
2
1
4
8
8
1
2
0
4
4
8
1.
2
4
6
9
2
/
M
b
d
b
i
o
e
m
o
n
c
o
m
e
1.
0
3
0
3
7
8
8
9
1
O
h
i
t
e
r
n
c
o
m
e
1
9
5
1
7
7
1
0
7
8
5
7
4
2
5
T
l
t
o
a
1
5
4
1
1
6
9
5
1
3
4
8
5
4
8
7
5
2
3
5

Balance sheet

(
U
d
i
d
f
i
i
U
S
D
i
l
l
i
)
t
n
a
u
e
g
u
r
e
s
n
m
o
n
3
1.
1
2
1
4
3
0
0
9
1
4
3
1.
1
2
1
3
G
d
i
l
l
o
o
w
2
2
6
7
2
2
6
7
2
2
6
7
V
l
e
s
s
e
s
1
0
2
7
3
1
0
0
4
1
9
4
6
9
N
b
i
l
d
e
s
w
u
3
1
1.
8
2
9
3
7
2
4
8
9
O
h
t
t
t
e
r
n
o
n-
c
u
r
r
e
n
a
s
s
e
s
5
7
5
2
4
9
T
l
t
t
t
o
a
n
o
n
-c
u
r
r
e
n
a
s
s
e
s
5
5
1
7
1.
5
1
2
9
7
1
4
2
7
4
C
h
d
d
i
t
a
s
a
n
e
p
o
s
s
1
2
2
4
1
4
6
5
1
1
3
4
O
h
t
t
t
e
r
c
u
r
r
e
n
a
s
s
e
s
1
2
2
9
9
3
6
7
9
1
T
l
t
t
t
o
a
c
u
r
r
e
n
a
s
s
e
s
2
4
5
3
2
3
9
2
1
9
2
5
T
l
t
t
o
a
a
s
s
e
s
1
8
1
6
8
1
6
8
9
7
1
6
1
9
9
S
h
i
l
t
a
r
e
c
a
p
a
6
5
9
6
5
9
6
5
9
O
h
i
t
t
e
r
e
q
u
y
6
8
2
6
6
6
0
7
6
7
3
8
i
T
l
t
t
o
a
e
q
u
y
7
4
8
5
7
2
6
6
7
3
9
7
I
f
l
l
i
b
i
l
i
i
t
t-
t
t
n
e
r
e
s
r
e
e
o
n
g
e
r
m
a
e
s
-
5
5
9
4
5
2
2
5
1
I
b
i
l
d
b
t
t-
t
t
n
e
r
e
s
e
a
r
n
g
o
n
g
e
r
m
e
-
8
3
0
1
9
1
9
4
9
6
7
7
T
l
l
l
i
b
i
l
i
i
t
t
t
o
a
o
n
g
e
r
m
a
e
s
-
8
8
6
0
9
6
4
6
8
0
4
7
O
h
i
f
l
i
b
i
l
i
i
t
t
t-
t
t
e
r
n
e
r
e
s
r
e
e
c
u
r
r
e
n
a
e
s
1
8
2
3
7
7
7
7
5
5
i
i
i
i
T
l
l
b
l
t
t
t
o
a
c
u
r
r
e
n
a
e
s
1
8
2
3
7
7
7
7
5
5
T
l
i
d
l
i
b
i
l
i
i
t
t
t
o
a
e
q
a
n
a
e
s
u
y
1
8
1
6
8
1
6
8
9
7
1
6
1
9
9

Key figures

S
K
E
Y
F
I
G
U
R
E
Q
4
1
4
Q
3
1
4
Q
4
1
3
2
0
1
4
2
0
1
3
O
i
i
t
p
e
r
a
n
g
m
a
r
g
n
5
0
2
%
5
4
9
%
4
9
7
%
4
5
3
%
4
6
8
%
E
i
i
t
t
q
r
a
o
u
y
4
1.
2
%
4
1.
1
%
4
%
5
7
4
1.
2
%
4
%
5
7
R
i
t
t
e
u
r
n
o
n
e
q
u
y
2
8
1
%
3
7
8
%
3
3
0
%
2
4
0
%
3
1.
7
%
(
S
)
N
i
b
i
d
b
U
D
i
l
l
i
t
t
t
t
e
n
e
r
e
s
e
a
r
n
g
e
m
o
n
0
7
7
7
3
8
7
7
6
6
6
2
0
7
7
7
6
6
6
2
N
b
f
h
(
)
1
0
0
0
u
m
e
r
o
s
a
r
e
s
2
3
5
9
7
3
2
3
5
9
7
3
2
3
5
9
7
3
2
3
5
9
7
3
2
3
5
9
7
3
f
(
)
A
d
i
h
1
0
0
0
t
t
e
r
a
g
e
n
o
o
o
s
a
n
n
g
s
a
r
e
s
v
u
2
3
9
3
5
7
2
3
9
3
5
7
2
3
9
3
5
7
2
3
9
3
5
7
2
3
3
8
0
6
U
S
D
/
N
O
K
h
d
f
i
d
t
t
e
x
c
a
n
g
e
r
a
e
a
e
n
o
p
e
r
o
7
4
3
6
4
5
6
0
8
7
4
3
6
0
8
S
(
O
)
h
i
N
K
a
r
e
p
r
c
e
2
3
0
0
3
8
7
5
4
6
8
0
2
3
0
0
4
6
8
0
S
h
i
(
U
S
D
)
a
r
e
p
r
c
e
3
1
0
5
8
3
7
7
0
3
1
0
7
7
0
(
O
)
M
k
i
l
i
i
N
K
i
l
l
i
t
t
t
a
r
e
c
a
p
a
s
a
o
n
m
o
n
5
4
2
7
8
8
6
8
1
1
0
4
4
5
4
2
7
1
1
0
4
4
S
M
k
i
l
i
i
(
U
D
i
l
l
i
)
t
t
t
a
r
e
c
a
p
a
s
a
o
n
m
o
n
3
0
7
1
3
7
5
1
8
1
6
3
0
7
1
8
1
6

Dividend

  • Board of Directors has declared an interim dividend equivalent to USD 0.048 per share
  • The shares will trade exdividend on 18 February
  • The dividend will be paid in the form of NOK 0.36 per share on 3 March

New debt facility – key terms & conditions

  • New USD 1,300 million bank facility to refinance existing USD 1,100 million and USD 420 million facilities
  • Loan agreement signed, closing expected shortly
  • Key terms & conditions:

I
t
t
t
n
e
r
e
s
r
a
e
:
L
I
B
O
R
f
f
i
1
9
0
t
+
p
e
r
c
e
n
o
r
e
e
a
r
s
v
y
L
I
B
O
R
l
2
1
5
t
t
t
+
p
e
r
c
e
n
a
s
o
e
a
r
s
w
y

T
e
n
o
r
:
(
)
i
i
2
0
2
2
7
t
t
y
e
a
r
s
m
a
u
r
y
n

R
t
e
p
a
m
e
n
y
:
S
S
S
i-
l
d
i
f
U
D
U
D
i
l
l
i
6
5
t
e
m
a
n
n
a
r
e
c
o
n
s
o
m
o
n
u
u
,
S
b
l
l
f
U
D
i
l
l
i
3
9
0
t
a
o
o
n
p
a
m
e
n
o
m
o
n
y
(
f
i
l
)
1
0
t
e
a
r
s
r
e
p
a
m
e
n
p
r
o
e
y
y

S
i
t
e
c
u
r
y
:
S
f
S
f
S
f
S
B
Z
h
d
i
i
a
e
o
r
e
a
s
a
e
e
p
y
r
u
s
a
e
c
a
n
n
a
v
a
,
,
,
S
f
C
S
f
S
f
R
l
i
l
d
i
B
i
l
i
t
e
g
a
a
a
e
a
e
o
n
a
a
e
r
s
o
a
a
e
,
,
,
S
f
C
A
i
d
i
t
s
o
r
a
a
e
o
n
c
o
r
a
,

New debt facility – financial covenants

  • Minimum liquidity
    • Cash 1> USD 65 million
  • Leverage ratio2
    • 2015-2017: Net Debt 2/EBITDA3< 5.0
    • 2018-2022: Net Debt 2/EBITDA3 < 4.5
  • Equity ratio3
  • -Value Adjusted Equity Ratio > 35 per cent
    1. Including up to USD 25 million of undrawn facilities
    1. Excluding debt related to new builds under construction
    1. Annualisation of contribution from new vessels that have not beenin operation for a full year
    1. Adjusted for market value of vessels

Debt instalment profile

Note: As the new USD 1,300 million facility includes a revolving tranche the scheduled instalments do not necessarily imply a reduction of cash (or gross interest-bearing debt)

Agenda

  • Recent developments
  • Financial results
  • Operations/projects
  • Outlook
  • Appendix

Operations

  • Utilisation rate of 92 per cent in Q4
  • Operating performance as expected, except Safe Bristolia incident
  • Safe Bristolia sustained damages to lifeboats after experiencing extreme weather conditions in early October

Safe Boreas

  • Vessel delivered from yard in mid-January
  • Currently in transit to Norway
  • On track for start-up of operations in Norway in late April/early May
    • First contract for Lundin Norway at the Edvard Grieg field in Norway
F
i
i
l
Q
4
1
4
t
t
n
a
n
c
a
s
a
u
s
S
U
D
m
B
k
l
b
o
o
a
e
o
v
u
1
1
7
B
k
l
b
o
o
a
e
c
v
u
1
2
5
C
i
l
i
d
i
t
t
a
p
a
s
e
n
q
a
r
e
r
u
8
E
i
d
l
t
t
t
t
t
s
m
a
e
o
a
c
o
s
3
0
5

Safe Zephyrus

  • Engines have been started
  • Mechanical completion in progress
  • Ready for operations in 2015
i
i
Q
F
l
4
1
4
t
t
n
a
n
c
a
s
a
s
u
S
U
D
m
B
k
l
b
o
o
v
a
u
e
o
8
4
B
k
l
b
o
o
v
a
u
e
c
9
1
C
i
l
i
d
i
t
t
a
p
a
s
e
n
q
u
a
r
e
r
7
E
i
d
l
t
t
t
t
t
s
m
a
e
o
a
c
o
s
3
5
0

Safe Notos and Safe Eurus

  • Projects developing as planned
  • -Float-out of Safe Notos hull in mid-January
  • -Keel-laying Safe Eurus in end January
  • Strong capabilities
  • -The most advanced and flexible vessels for worldwide operations excluding Norway
  • Ready for operations in 2016

Safe Scandinavia and Safe Concordia

  • Safe Scandinavia TSV project
    • 3 years firm (+4 years of options) contract with Statoil for use of the vessel as a Tender Support Vessel (TSV) at Oseberg Øst in Norway
    • Vessel to go to Westcon yard in Norway after completion of contract with Premier Oil in late February
  • -Fabrication of equipment packages progressing well
  • -Start-up of operations at Oseberg Øst scheduled for mid 2015
  • Safe Concordia SPS
  • -Vessel to go to the Maua yard in Brazil in mid February
  • -Expected to be off-hire for approximately 10 weeks

2015 capital expenditure

  • Expected capital expenditure in 2015: USD 700-750 million
  • Major items:
    • Final yard instalment Safe Boreas
    • Final yard instalment Safe Zephyrus
    • Safe Scandinavia TSV conversion
  • -Safe Concordia SPS
    • Safe Notos/Safe Eurus newbuild projects

Agenda

  • Recent developments
  • Financial results
  • Operations/projects

Outlook

Appendix

Substantial growth in semi accommodation fleet

No. of accommodation semis by owner Overview of incoming vessels 2012-2016

  • Significant share of incoming vessels not originally designed for accommodation purposes
  • -Not ideally designed and equipped for high-end accommodation support operations
  • Vessel exits
  • -Safe Scandinavia going into TSV market for a minimum of three years from 2015
    • Some low-quality vessels may be retired/moved to lower-end segments, particularly if demand weakness persists

North Sea – lower activity level

  • Short-to-medium term weakness
    • De-scoping, postponement and cancellation of projects
  • -Longer decision processes
    • Some prospects that can lead to contract awards over the coming year
  • Long-term demand drivers intact
  • -Aging infrastructure
  • -Recovery rates trending upwards
    • Large new fields to come on stream in coming years
    • High interest in recent licensing rounds
    • Significant potential for work related to decommissioning in due course

Based on firm contracts, extension options, projects in the tendering phase and prospects for the next 36 months. Index based on number of days in demand. Q4 11 = 100

Source: Prosafe

North Sea day rates (time charter)

Mexico – rising short-term uncertainty

  • Promising long-term demand picture
    • Interesting potential also in other shallow water areas besides Cantarell
    • Energy reform should lead to more deepwater exploration
  • Oil price drop has created short-term uncertainty
    • But production volumes not expected to be negatively affected
    • Should imply continued demand for services supporting production and recovery rates, such as accommodation support

Mexico day rates (bareboat)

Brazil – potential for further contract awards

  • Accommodation vessels used for safety and maintenance purposes at producing fields
  • Outlook for further growth is still positive
    • Potential for further contract awards over the coming year
  • But oil price drop creates uncertainty also in the Brazilian market

Rest of the world – interesting opportunities

  • Australia
  • -Some demand related to hook-up and commissioning
    • As fields are getting older, there should be potential for more maintenance and modification related work
  • South East Asia
    • Some demand for semis in mid and deep waters, mostly related to hook-up and commissioning
  • US GoM
  • -A number of prospects developing in the mid and deep water areas
  • West Africa
  • -Opportunities as operators plan for major hook-up and commissioning projects

Rest of the World day rates (time charter)

High contract visibility

Contract backlog still robust

But no new contracts signed over the past nine months

Gross value of charter contracts

Cost efficiency measures

  • Review of cost reduction potential has been initiated in light of the weaker market outlook
  • The whole cost structure, both onshore and offshore, will be evaluated
  • Some measures already implemented, others to follow in the coming months

Summary

  • Safe Boreas delivered from yard and in transit to Norway
    • Other projects also progressing well
  • Refinancing provides increased financial flexibility and reduces refinancing risk
  • Increased market uncertainty following further drop in oil price

Agenda

  • Recent developments
  • Financial results
  • Operations/projects
  • Outlook

Appendix

Debt facilities

L
o
a
n
C
i
t
t
o
m
m
m
e
n
M
i
t
t
a
u
r
y
M
i
a
r
g
n
O
N
K
0
0
i
l
l
i
b
d
(
2
0
1
1-
1
6
)
5
m
o
n
o
n
O
N
K
0
0
i
l
l
i
5
m
o
n
Q
1
2
0
1
6
3
0
b
5
p
s
O
N
K
0
0
i
l
l
i
b
d
(
2
0
1
2-
1
)
5
7
m
o
n
o
n
O
N
K
0
0
i
l
l
i
5
m
o
n
Q
1
2
0
1
7
3
b
7
5
p
s
N
O
K
i
l
l
i
b
d
(
)
7
0
0
2
0
1
3-
1
8
m
o
n
o
n
N
O
K
i
l
l
i
7
0
0
m
o
n
Q
4
2
0
1
8
b
2
9
5
p
s
N
O
K
i
l
l
i
b
d
(
)
7
0
0
2
0
1
4-
1
9
m
o
n
o
n
N
O
K
i
l
l
i
7
0
0
m
o
n
Q
3
2
0
1
9
b
3
1
0
p
s
N
O
K
i
l
l
i
b
d
(
)
5
0
0
2
0
1
3-
2
0
m
o
n
o
n
N
O
K
i
l
l
i
5
0
0
m
o
n
Q
1
2
0
2
0
b
3
7
5
p
s
S
f
(
)
U
D
2
8
8
i
l
l
i
d
i
i
l
i
2
0
1
4-
2
1
t
t
m
o
n
c
r
e
a
c
y
S
U
D
2
8
8
i
l
l
i
m
o
n
Q
1
2
0
2
1
2
2
5
b
p
s
S
f
(
)
(
)
U
D
1,
3
0
0
i
l
l
i
d
i
i
l
i
2
0
1
5-
2
2
1
t
t
m
o
n
c
r
e
a
c
y
S
U
D
1,
3
0
0
i
l
l
i
m
o
n
Q
1
2
0
2
2
1
9
0
b
p
s
S
f
(
)
(
)
U
D
1,
1
0
0
i
l
l
i
d
i
i
l
i
2
0
1
1-
1
7
2
t
t
m
o
n
c
r
e
a
c
y
S
U
D
7
9
1
i
l
l
i
m
o
n
Q
3
2
0
1
7
1
8
7.
5
b
p
s
S
(
)
(
)
U
D
4
2
0
i
l
l
i
d
i
f
i
l
i
2
0
1
2-
1
2
t
t
7
m
o
n
c
r
e
a
c
y
S
U
D
4
2
0
i
l
l
i
m
o
n
Q
4
2
0
1
7
2
9
b
5
p
s
  1. New facility. Closing expected in February 20152.To be repayed on closing of the new USD 1,300 million facility

Fleet overview– North Sea

Deck area 3,250 m

Geographical area Norway/North Sea Norway/North Sea North SeaMooring system DP 12 point chain winches 10 point wire winchesStation keeping NMD3 Moored DP2 / TAMSNo of beds 282 583 3872 400 mDesign GVA 3000E Aker H-3.2E F+G PacesetterBuilt 1985 1984 1982

Name Regalia Safe Scandinavia Safe Caledonia2 900 mConverted/upgraded 2003, 2009*, 2014 2003, 2005, 2014* 2004, 2012*

2

* 20-year life extensions

Fleet overview– North Sea

Deck area 2,100 m

Name Safe Boreas Safe ZephyrusGeographical area Norway/North Sea Norway/North SeaMooring system 12 point wire winches 12 point wire winchesStation keeping DP3 DP3No of beds 450 4502 2,100 mDesign GVA 3000E GVA 3000EBuilt 2014 2015

Fleet overview– North Sea

  • Deck area 1,500 m
  • Name Safe Notos Safe Eurus Safe BristoliaGeographical area North Sea North Sea North SeaMooring system 10 point chain winches 10 point chain winches 8 point wire winchesStation keeping DP3 DP3 MooredNo of beds 500 500 587 (UK: 316)2 1,500 mDesign Gusto MSC Ocean 500 Gusto MSC Ocean 500 Sedco 600 Built 2016 2016 1983

2 400 mConverted/upgraded n/a n/a 2006, 2008

2

Fleet overview– non-North Sea

Deck area 620 m

Name Safe Astoria Safe ConcordiaGeographical area Non-North Sea Non-North SeaMooring system 8 point wire winches 4 point wire winchesStation keeping Moored DP2No of beds 245 4612 1,300 mDesign Sesco 600 KFELSBuilt 1983 2005Converted/upgraded 2005, 2012 n/a

Fleet overview– Mexico

Geographical area Mexico(/North Sea) Mexico Mexico(/North Sea)Mooring system 9 point wire winches 8 point chain winches 12 point wire winchesStation keeping DP2 / TAMS DP2 MooredNo of beds 812 600 500Deck area 1,300 mDesign F+G Pacesetter GVA 200 Aker H-3Built 1980 1984 1977Converted/upgraded 1987, 2003 2003 1991, 1994, 2006

21,100 m

Name Safe Britannia Safe Lancia Safe Hibernia2750 m

Fleet overview– Mexico

Deck area 800 mConverted/upgraded 2003, 2008 2002

Name Safe Regency JasminiaGeographical area Mexico(/North Sea) MexicoMooring system 8 point wire winches 8 point wire winchesStation keeping DP2 MooredNo of beds 771 5352 690 mDesign F+G Pacesetter GVA 2000Built 1982 1982

Talk to a Data Expert

Have a question? We'll get back to you promptly.