Prosafe SE

Earnings Release • Aug 21, 2015

Prosafe SE : Second quarter and first half 2015 report

Prosafe SE : Second quarter and first half 2015 report

Operating profit for the second quarter came to USD 22.8 million and net profit

amounted to USD 12.2 million. Prosafe has entered into contracts of a total

gross value of approximately USD 240 million in August. An interim dividend of

NOK 0.40 per share was resolved.

Financials

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

Second quarter

Revenues for the second quarter of 2015 were USD 92.5 million (USD 133.4

million). Revenues are reduced by USD 12.7 million as a result of a commercial

agreement which overall will result in a net positive revenue effect in the

longer term.

Operating profit amounted to USD 22.8 million (USD 55.0 million).

Net financial expenses for the second quarter were USD 7.0 million (USD 10.0

million). This change is mainly due to favourable currency effects partly offset

by higher interest costs.

Net profit amounted to USD 12.2 million (USD 42.1 million), corresponding to

diluted earnings per share of USD 0.05 (USD 0.18).

Total assets at 30 June amounted to USD 2,241.7 million (USD 1,689.9 million),

while the book equity ratio declined to 33.9 per cent (40.9 per cent). Net

interest-bearing debt stood at USD 1,123.7 million (USD 799.2 million).

Operations

The fleet utilisation rate in the second quarter of 2015 was 58 per cent.

Regalia, Safe Astoria, Safe Regency, Safe Lancia and Safe Hibernia were fully

utilised during the quarter.

Safe Britannia underwent a planned DP upgrade during the second quarter and was

off-hire for 30 days. Jasminia remains off-hire after going off contract in late

February 2015.

Safe Concordia completed a five-year special periodic survey and upgrade works

at the Maua Shipyard in Brazil during the quarter. The contract with Petrobras

re-commenced late June 2015.

The new build Safe Boreas arrived in Norway in April. The contract with Lundin

Norway AS for support in connection with the hook-up and commissioning of the

Edvard Grieg platform in the North Sea commenced in mid-May. In addition, Lundin

Norway has exercised the first of the one-month options.

Safe Caledonia was contracted to Nexen Petroleum U.K. until the end of April.

The contract with BP Exploration Operating Company Limited for support at the

Andrew field in UK commenced early July 2015.

Safe Bristolia completed repair work at the Hanøytangen shipyard in Norway

during the quarter. The contract with BG International Limited for work at the

Everest field in UK commenced at the beginning of June 2015 in accordance with

the announcement made on 22 May 2015.

The contract for Safe Astoria with Shell Philippines Exploration BV at the

Malampaya field has been extended until late August.

New builds and projects

The conversion of Safe Scandinavia to a tender support vessel at the Westcon

yard in Ølensvåg, Norway, continued during the second quarter. The project is

experiencing some further delays and the start-up of the contract for Statoil is

expected to take place during the fourth quarter of 2015.

As stated in the operational update published on 29 July 2015, the total capital

expenditure for 2015 is expected to increase by 5 to 10 per cent relative to

previous guidance, as a result of the extended yard stays for Safe Scandinavia

and Safe Concordia and further cost increases related to the Safe Bristolia

repair work.

The cost forecasts for the new builds remain as previously communicated.

Safe Boreas was delivered from the yard in Singapore in January 2015, with

delivery of its sister vessel Safe Zephyrus scheduled for Q4 2015.

Construction of the Safe Notos and Safe Eurus in China is progressing as

planned. As a result the vessels should be ready for operations during the first

and second half of 2016 respectively.

New contracts

Prosafe has entered into contracts of a total gross value of approximately USD

240 million in August. From Q1 2017 Safe Eurus will work for three years for

Petrobras in Brazil. Safe Notos will be deployed on an eight month contract in

the UK from Q2 2016, with Safe Zephyrus covering a short period at the start of

the contract.

In addition, the contract for Safe Astoria in the Philippines has been extended

to late August 2015 and Lundin Norway has exercised an option to extend the

contract for Safe Boreas by one month to December 2015.

With these new contracts Prosafe has now secured work for all four new builds.

Outlook

The oil and gas services market remains challenging, and in the current lower

oil price environment Prosafe has seen prospects being deferred or work scopes

being reduced. However, Prosafe has been awarded several new contracts and

extensions, resulting in improved short term revenue visibility. Set against

this relatively robust short term outlook, uncertainty remains in respect of the

medium term.  Nevertheless, the company should be well placed to continue to

take relative advantage of market conditions in the longer term.

Dividend

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

0.048 per share to shareholders of record as of 28 August 2015.  The shares will

trade ex dividend on 27 August 2015. The dividend will be paid in the form of

NOK 0.40 per share on 10 September 2015.

Risk

Prosafe's key risks are described in detail in the Directors' Report as set out

in the Annual Report 2014 and include Prosafe's main operational risks e.g. day

rate level and  utilisation rate of the accommodation vessels. The company's

results also depend (inter alia) on operating costs, interest expenses and

exchange rates.

Statement from the Board, the CEO and the CFO

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

first half year of 2015, 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 profit or loss of the

company, 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 and Cyprus Transparency

Requirements Law No:190(1) 2007 section 10.

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: Q2 2015 report, Q2 2015 presentation

Larnaca, 21 August 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: +47 478 07 813

Sven Børre Larsen, Departing Chief Financial Officer

Prosafe Management AS

Phone: +47 909 43 673

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#1946884]