Prosafe SE

Earnings Release • Aug 26, 2010

Second quarter 2010 results

Operating profit amounted to USD 79.7 million, which is the best ever quarterly

result, and net profit amounted to USD 43.1 million. Prosafe expects a good

long-term demand for semi-submersible accommodation rigs, with stable activity

in the North Sea and Mexico and growth in deepwater regions.

Financials

(Figures in brackets refer to the corresponding period of 2009)

First half 2010

Operating profit for the first half of 2010 came to USD 119.7 million (USD 84.3

million). Utilisation of the rig fleet was 80 per cent (82 per cent), but the

effect of this decline was more than offset by higher day rates.

Safe Caledonia was in operation for Total until mid-June, when an incident

during relocation lead to minor damages to the starboard column/pontoon. As a

precautionary measure, the vessel was taken to sheltered waters for necessary

repairs, resulting in 8 days with loss of day rate and an estimated additional

cost of around USD 2 million. Safe Caledonia recommenced operations for Total in

late June.

Safe Esbjerg was in operation until mid-February, when the jack-up rig was

mobilised to Gdansk to undertake class renewal, steel work and refurbishment.

Safe Esbjerg recommenced operations for Maersk in mid-April.

Safe Bristolia was in operation in Mexico until late January before the rig was

mobilised to the North Sea. The rig started a charter in the UK North Sea in the

beginning of April 2010.

Safe Scandinavia was idle in the first quarter, but commenced operations for

Statoil in late April.

Safe Astoria was in operation for Shell until the end of June, and Safe

Concordia was idle in the first half of 2010.

All other vessels have been fully utilised in the first half of 2010.

Net financial costs amounted to USD 24.3 million (USD 4.3 million). In the first

half of last year there was a significant increase in market value of currency

forwards.

Taxes in the first half equalled USD 1.1 million positive (USD 10.6 million

negative). This change is due to a reduced tax provision relating to an

unrealised currency gain in a Norwegian subsidiary.

Net profit amounted to USD 96.5 million (USD 69.4 million), corresponding to

diluted earnings per share of USD 0.43 (USD 0.31).

Total assets as at 30 June amounted to USD 1 364.1 million (USD 1 387.9

million), and the book equity ratio rose to 25.1 per cent (13.7 per cent).

Gearing has come down over the last year, with a total debt/EBITDA ratio of 2.7

(3.8) as at 30 June.

Second quarter

Utilisation of the rig fleet was 87 per cent (86 per cent) in the second

quarter. Operating profit amounted to USD 79.7 million (USD 46.8 million), which

is the best ever quarterly result. This improvement is mainly due to higher day

rates.

Net financial costs amounted to USD 11.9 million (net income of USD 4.6

million). The main reason for this change is a significant increase in market

value of currency forwards in the first half last year.

Taxes in the second quarter amounted to USD 1.9 million positive (USD 8.3

million negative). This change is due to a reduced tax provision relating to an

unrealised currency gain.

Net profit amounted to USD 43.1 million (USD 43), corresponding to diluted

earnings per share of USD 0.19 (USD 0.19).

Dividend

The Board of Directors resolved on 25 August 2010 to declare an interim dividend

equivalent to USD 0.095 per share to shareholders of record as of 6 September

2010. The shares will trade ex-dividend on 2 September 2010. The dividend will

be paid in the form of NOK 0.59 per share on 16 September 2010.

Outlook

Five of the company's rigs are bareboat chartered to Interpetroleum Services,

operating for Pemex offshore Mexico. These five rigs have firm contracts as

follows: Safe Lancia until December 2012, Jasminia until December 2010, Safe

Hibernia until May 2011, Safe Britannia until January 2013 and Safe Regency

until August 2013.

Safe Esbjerg is operating for Maersk in the Danish North Sea until June 2011.

Safe Caledonia is operating for Total in the UK North Sea until mid-September

2010. Safe Caledonia has a 9-month contract with BG International planned to

commence March 2011.

MSV Regalia is operating for BP in the Norwegian North Sea. The contract with BP

has a firm duration until July 2011.

Safe Scandinavia has a firm contract with Statoil, six months that commenced

early May 2010 and six months from early April 2011.

Safe Bristolia is on contract with Nexen in the North Sea until the end of

September 2010.

Safe Astoria and Safe Concordia are currently idle.

In the North Sea, the majority of the fixed installations is mature and requires

greater maintenance and modifications to uphold production and safe operation.

Increased recovery and tie-ins of satellite fields to existing installations

have extended the lifetime for many fields in the North Sea. Therefore, we

foresee a good outlook for modification and maintenance projects over the coming

years.

There have recently been a high number of awards for accommodation work in the

North Sea for 2011 and 2012. We expect that more offshore projects in the North

Sea will require additional accommodation in 2011 and 2012.

The market for semi-submersible accommodation rigs continues to be good in

Mexico, where Pemex has high activity offshore in order to keep up production of

the Cantarell field. Prosafe currently has five rigs operating in Mexico and we

expect a stable development going forward.

There is tender activity in other regions and contract awards are expected in

the near future.

Within the harsh and semi-harsh offshore environments where most of Prosafe's

accommodation rigs operate, there is a good supply-demand balance and the number

of new-builds to be delivered over the next few years is limited.

In summary, we expect a good long-term demand for semi-submersible accommodation

rigs, with stable activity in the North Sea and Mexico and growth in deepwater

regions.

Risk

Prosafe's main operational risks are the day rate level and the utilisation rate

of the accommodation fleet. The company's results also depend on operating

costs, interest expenses and exchange rates. These risks are described in detail

in the Directors' report in the Annual Report 2009.

Statement from the board of directors and president & CEO

We confirm that, to the best of our knowledge, the financial statements for the

first half year of 2010, which have been prepared in accordance with IAS 34

Interim Financial Statements as adopted by the European Union and the

requirements of the Cyprus Companies Law, give a true and fair view of the

company's assets, liabilities, financial position and results of operations, and

that the interim management report includes a fair review of the information

required under the Norwegian Securities Trading Act section 5-6 fourth paragraph

and the Cyprus Companies Law.

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

accommodation/service rigs. Operating profit reached USD 218.6 million in 2009.

The company operates globally, employs approx. 400 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:  Q2 2010 report, Q2 2010 presentation

Larnaca, 26 August 2010

Prosafe SE

For further information, please contact:

Arne Austreid, President and CEO

Phone: +357 992 75 030

Karl Ronny Klungtvedt, EVP Strategy and Corporate Planning

Phone: +47 908 81 657

This information is subject of the disclosure requirements acc. to §5-12 vphl

(Norwegian Securities Trading Act)

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