Prosafe SE

Earnings Release • Aug 20, 2020

Prosafe SE: Second quarter and first half report 2020

Prosafe SE: Second quarter and first half report 2020

(Figures in brackets refer to the corresponding period of 2019)

The process with lenders for a sustainable financial solution is constructive

and progressing. Reported EBITDA for the second quarter was negative by USD

10.1 million (USD 53.1 million positive), primarily reflecting all time low

activity. Cash flow from operations was negative by USD 5.5 million (USD 19.9

million positive).

Although the market conditions and macro environment continue to be challenging

due to effects of Covid-19 and the parallel oil price collapse, the company

remains in constructive discussions with clients relating to upcoming and

ongoing contracts on such subjects as temporary suspensions and/or deferral as

well as commercial and payment terms. Further details are described in the

Operations section later in this report. The company has also successfully

implemented further cost and spend saving initiatives to adapt to the new

reality and protect liquidity.

Prosafe had liquidity reserve of USD 177.5 million at the end of Q2 2020 (USD

241 million). The forbearance arrangement previously reported expired at the end

of July. However, the process and creditor discussions remain constructive and

lenders in general maintain their support of the company.  Pending conclusions,

the company continues to operate on a going concern basis to protect and create

value through challenging market conditions on the assumption that there is

justified hope for a sustainable financial solution.

Recent highlights

* Prosafe has successfully implemented Covid-19 plans early to safeguard

people and assets, onshore and offshore.

* Further cost and spend saving initiatives have been implemented to adapt to

the new reality and to protect liquidity.

* Total liquidity reserve of USD 177.5 million per Q2 2020 (USD 241 million).

The company is all else equal able to stay cash positive well beyond the

next 12 months.

* The process with lenders remains constructive and lenders in general

maintain their support for the company to continue to operate on a going

concern basis and seek a long-term financial solution while reserving their

rights. The company expects to complete the refinancing process in the

second half of 2020.

* In light of impact from Covid-19 and the oil price collapse, the company

continues its commercial discussions with clients relating to deferred,

current and upcoming contracts. There is uncertainty related to the extent

to which the order backlog will materialize in 2020, as well as to the final

outcome of these negotiations.

* Recently notified that Safe Eurus will return to normal operations on 24

September 2020.

* Fleet utilisation of 6.5 per cent (71.6 per cent) in the quarter.

* Fleet enhancement continues. The process to sell Regalia for  recycling has

commenced.

* Firm order book of USD 122 million per Q2 2020 (USD 199 million).

* Reported EBITDA was negative by USD 10.1 million (USD 53.1 million positive)

in the quarter

* The book equity was negative by USD 899.4 million as of June 2020, which was

mainly resulting from the impairment made to the book value of vessels in Q1

Jesper K. Andresen, Prosafe's CEO says, "2020 is a lost year as the Covid-19

pandemic and weak market conditions have resulted in an unprecedented low fleet

utilisation, low earnings and increased uncertainty about the outlook. This came

on top of an already challenging financial situation where the company has

initiated discussions with its lenders for a sustainable financial solution.

Prosafe has, however, successfully implemented actions to protect people and

assets, revised its operating model and business plan in order to adapt and

position the company through the turmoil. The process with the lenders remains

constructive and progressing. Meanwhile, the company is taking every step to

protect liquidity while vigorously pursuing any commercial opportunity".

A complete version of the Q2 2020 earnings release and the Q2 2020 presentation

is attached and can be downloaded from www.prosafe.com (http://www.prosafe.com)

and www.newsweb.no (http://www.newsweb.no)

Prosafe is a leading owner and operator of semi-submersible accommodation

vessels. The company is listed on the Oslo Stock Exchange with ticker code PRS.

For more information, please refer to www.prosafe.com (http://www.prosafe.com)

20 August 2020

Prosafe SE

For further information, please contact:

Jesper K. Andresen, CEO

Phone: +47 51 65 24 30 / +47 907 65 155

Stig Harry Christiansen, Deputy CEO and CFO

Phone: +47 51 64 25 17 / +47 478 07 813

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act