Earnings Release • Feb 4, 2021
Earnings Release
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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 forward-looking 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.
Pending outcome of the process, the company continues to operate on a business-as usual basis to protect and create value through challenging market conditions.
Update on financial situation
Total liquidity reserve of USD 160.3 million at year end of 2020 (USD 198.1 million).
Update on financial situation
| Q4 | |||
|---|---|---|---|
| (Unaudited figures in USD million) | 2020 | 2019 | |
| Operating revenues | 16 | 26 | |
| Operating expenses | (15) | (33) | |
| Operating results before depreciation | 1 | (6) | |
| Depreciation | (8) | (18) | |
| Impairment | 0 | (0) | |
| Operating (loss) profit | (7) | (25) | |
| Interest income | 0 | 1 | |
| Interest expenses | (14) | 13 | |
| Other financial items | (8) | (1) | |
| Net financial items | (22) | 13 | |
| (Loss) Profit before taxes | (29) | (12) | |
| Taxes | (0) | (1) | |
| Net (Loss) Profit | (29) | (13) | |
| EPS | (0.33) | (0.15) | |
| Diluted EPS | (0.33) | (0.15) |
| (Unaudited figures in USD million) | 31.12.20 | 31.12.19 |
|---|---|---|
| Vessels | 412 | 1,205 |
| New builds | 1 | 61 |
| Other non-current assets | 2 | 2 |
| Total non-current assets | 416 | 1,267 |
| Cash and deposits | 160 | 198 |
| Other current assets | 12 | 15 |
| Total current assets | 172 | 213 |
| Total assets | 588 | 1,480 |
| Share capital | 9 | 9 |
| Other equity | (958) | (7) |
| Total equity | (949) | 2 |
| Interest-free long-term liabilities | 6 | 30 |
| Interest-bearing long-term debt | 79 | 77 |
| Total long-term liabilities | 85 | 107 |
| Other interest-free current liabilities | 21 | 50 |
| Current portion of long-term debt | 1,431 | 1,321 |
| Total current liabilities | 1,452 | 1,371 |
| Total equity and liabilities | 588 | 1,480 |
| Key figures: | ||
| Working capital | (1,279) | (1,158) |
| Liquidity reserve | 160 | 198 |
| Interest-bearing debt | 1,509 | 1,398 |
| Net Interest-bearing debt | 1,349 | 1,200 |
| Book equity ratio | (161.4)% | 0.2% |
Book equity was USD 949 million negative at year-end 2020. However, the company anticipates that an agreement with lenders regarding sufficient financial flexibility for the longer term will change the balance sheet significantly
Update on financial situation
Regalia: in the process of recycling
Safe Vega and Safe Nova – newbuilds at yard
Successfully maintained its order book by moving contracts from 2020 to 2021 and adding new contract and extension
Order backlog per Q4 2020 was USD 144 million
The company believes that there will be a need for accommodation vessels and a gradual move towards a sustainable market. The company is, however, of the opinion that the supply side in the industry is too fragmented and in need of significant reduction of the fleet. Meaningful consolidation and continued scrapping are needed to contribute to a faster normalization of the return in our industry. In this perspective, Prosafe will continue to be active in further consolidation of the offshore accommodation industry to protect and create value.
| (USD million) | Q4 20 | Q4 19 | Q3 20 | 2020 | 2019 |
|---|---|---|---|---|---|
| Charter income | 13.3 | 24.4 | 10.9 | 53.0 | 191.7 |
| Other income | 2.2 | 1.9 | 0.8 | 3.7 | 33.7 |
| Total | 15.5 | 26.3 | 11.7 | 56.7 | 225.4 |
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