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Prosafe SE
Earnings Release • Nov 14, 2024
3718_rns_2024-11-14_96062fcf-eb2e-4616-b60f-facc16aed9f8.pdf
Earnings Release
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Prosafe SE: Third-quarter results 2024
(Figures in brackets refer to the corresponding period last year)
14 November 2024 – Prosafe SE reported EBITDA of USD 5.0 million (USD 8.4 million) for the third quarter of 2024. The company had four active vessels during the quarter.
Operations and HSSE
- Good operating and safety performance on all vessels
- Q3 2024 utilisation of 57% (52%), four out of seven vessels operating during the quarter
- Safe Concordia, Safe Notos and Safe Eurus all had 100% utilisation, Safe Zephyrus 99% utilisation
- Strong commercial performance with close to doubling of backlog from prior year
- o Safe Boreas and Safe Caledonia contracts signed, adding USD 137 million to firm backlog
- o Safe Concordia contract extended to early March 2025, adding USD 13.1 million to firm backlog
- o Safe Zephyrus extension expected to Q3 2027 with Petrobras, adding potential USD 105 million to backlog
- Backlog of USD 400 million (USD 268 million) including expected Zephyrus extension
Q3 financials
- Revenues of USD 34.6 million (USD 32.8 million) and EBITDA of USD 5.0 million (USD 8.4 million)
- Cash flow from operations of USD 9.1 million (negative USD 14.0 million), impacted positively by Safe Caledonia up-front contract payment
- Capex of USD 2.8 million (USD 5.7 million)
- Liquidity position of USD 63.5 million, compared to USD 65.9 million at end Q2 2024 and USD 74.6 million at end Q4 2023
- Increased backlog and improved outlook create a platform to strengthen liquidity and achieve a sustainable capital structure
- Refinancing process is continuing with an indicative refinancing requirement of ~USD 400 million including USD 343 million in debt maturities and additional liquidity to support rig re-activations and capex
- Advisors have been appointed to support the refinancing process
- Expect to complete refinancing during H1 2025, an equity component is expected to form part of the overall structure
Market and outlook
- Improving Brazil market with recent tender and further long and short-term contracts expected
- North Sea operators planning future campaigns with continued bidding for 2025 and discussions regarding 2026 to 2028 requirements
- Increased utilisation and earnings growth expected in coming years
Terje Askvig, the CEO of Prosafe, says, "Prosafe is successfully building a strong backlog for 2025 and onwards. Our recent commercial progress confirms an improving market for accommodation vessels led by high demand in Brazil supported by more activity in the North Sea and other markets. Combined with continued high operational efficiency, this provides a foundation for earnings growth and achieving a sustainable capital structure prior to 2025 maturity refinancing."
Key figures
| Q3 | Q3 | YTD | YTD | Full Year | |
|---|---|---|---|---|---|
| (Unaudited figures in USD million) | 2024 | 2023 | 2024 | 2023 | 2023 |
| Operating revenues | 34.6 | 32.8 | 102.8 | 68.1 | 97.7 |
| EBITDA | 5.0 | 8.4 | 18.8 | (7.8) | (10.5) |
| EBIT | (3.0) | 1.7 | (5.1) | (29.0) | (41.6) |
| (Loss)/Profit before taxes | (11.5) | (5.7) | (28.4) | (52.0) | (73.2) |
| EPS | (0.66) | (0.49) | (1.72) | (5.26) | (6.00) |
| Diluted EPS | (0.66) | (0.49) | (1.72) | (5.26) | (6.00) |
| Net loss | (11.8) | (5.7) | (30.7) | (53.1) | |
| Cash flow from operating activities | 9.1 | (14.0) | 23.2 | (15.3) | (11.5) |
| Cash flow from investment activities | (2.5) | (3.6) | (7.4) | (29.6) | (33.9) |
| Cash flow from financing activities | (9.0) | (9.0) | (26.9) | 2.3 | 28.4 |
| Net cash flow | (2.4) | (26.2) | (11.1) | (42.6) | (17.0) |
| Liquidity1 | 63.5 | 49.0 | 63.5 | 49.0 | 74.6 |
| Net working capital2 | (3.1) | 11.4 | (3.1) | 11.4 | 5.1 |
| Interest-bearing debt3 | 417.4 | 419.6 | 417.4 | 419.6 | 419.5 |
| Net Interest-bearing debt ("NIBD") | 353.9 | 370.6 | 353.9 | 370.6 | 344.9 |
| Total assets | 465.4 | 472.9 | 456.4 | 472.9 | 492.7 |
| Book equity | 4.0 | 16.5 | 4.0 | 13.1 | 33.8 |
| Book equity ratio4 | 0.9 % | 2.8 % | 0.9 % | 2.8 % | 6.9 % |
| Shares outstanding '000 | 17,869 | 11,519 | 17,869 | 11,519 | 17,869 |
| Order book (Firm) | 259.09 | 268.2 | 259.0 | 268.2 | 237.8 |
| Utilisation rate % | 56.9 | 52.3 | 56.6% | 38.0 | 41.0 |
1 Liquidity equals cash and deposits, and includes USD 2.3 million in restricted cash
2 Net working capital is equal to (Total current assets excl. cash – Total current liabilities excl. Tax payable and current portion long-term debt)
3 Net Interest-bearing debt (NIBD) is equal to Interest-bearing debt less liquidity. NIBD is reduced by a USD 6.6 million fair value adjustment, of which USD 2.7 million is short term.
4 Book equity ratio is equal to (Book equity / Total assets) * 100
Presentation
Terje Askvig, CEO and Reese McNeel, CFO will today at 10:00 a.m. CET present the results at Pareto Securities, Dronning Mauds gate 3, 0115 Oslo.
The presentation is open to public and can also be followed live via web streaming at https://wwww.prosafe.com
It will be possible to ask questions during the presentation by using the Q&A tool embedded in the audiocast. These questions will be answered after the presentation.
A replay of the audiocast will be made available on Prosafe's website shortly after.
The Q3 2024 press release and presentation is attached and can be downloaded from https://www.prosafe.com and www.newsweb.no (https://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 (https:///www.prosafe.com)
For further information, please contact:
Terje Askvig, CEO Phone: +47 952 03 886
Reese McNeel, CFO Phone: +47 415 08 186
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.
