Prosafe SE — Investor Presentation 2010

Feb 18, 2010

Prosafe

Oslo, 18 February 2010

Q4 2009 results

---

Disclaimer

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.

Prosafe

---

Agenda

→ n The quarter in brief
n Financial results
n Operations
n Outlook
n Summary
n Attachments

Prosafe

---

The quarter in brief

• Strong operational performance
• Rig utilisation rate of 84 per cent in Q4 and 86 per cent in 2009
• NOK 500 million bond issue completed

Leading position in a good accommodation market

Prosafe

---

Agenda

• The quarter in brief
  → Financial results
• Operations
• Outlook
• Summary
• Attachments

Prosafe

---

Income statement

(Unaudited figures in USD million)	Q4 09	Q3 09	Q4 08	2009	2008
Operating revenues	106.7	123.7	134.2	397.9	491.1
Operating expenses	(34.6)	(31.5)	(55.7)	(123.6)	(210.1)
EBITDA	72.1	92.2	78.5	274.3	281.0
Depreciation	(14.9)	(15.1)	(12.9)	(55.7)	(48.8)
Operating profit	57.2	77.1	65.6	218.6	232.2
Interest income	0.1	0.0	0.8	0.4	4.0
Interest expenses	(11.6)	(10.7)	(13.6)	(44.8)	(57.1)
Other financial items	(53.5)	2.3	(26.6)	(33.3)	(23.7)
Net financial items	(65.0)	(8.4)	(39.4)	(77.7)	(76.8)
Profit before taxes	(7.8)	68.7	26.2	140.9	155.4
Taxes	(0.7)	(2.4)	6.6	(13.7)	9.4
Net profit from continuing operations	(8.5)	66.3	32.8	127.2	164.8
Net profit from discontinued operations	0.0	0.0	0.0	0.0	38.0
Net profit	(8.5)	66.3	32.8	127.2	202.8
Earnings per share	(0.04)	0.30	0.15	0.57	0.88
Diluted earnings per share	(0.04)	0.30	0.15	0.57	0.88

Prosafe

---

Operating revenues Offshore Support Services

(USD million)	Q4 09	Q3 09	Q4 08	2009	2008
Charter income	92.8	116.7	113.2	368.5	388.0
Mobilisation/demobilisation income	0.6	2.3	1.3	4.0	17.2
Other income	13.3	4.7	19.8	25.4	79.5
Total	106.7	123.7	134.3	397.9	484.7

Prosafe

---

Balance sheet

(Unaudited figures in USD million)	31.12.09	30.09.09	31.12.08
Goodwill	226.7	226.7	226.7
Rigs	913.5	929.2	828.4
Other non-current assets	4.9	5.2	3.8
Total non-current assets	1 145.1	1 161.1	1 058.9
Cash and deposits	88.5	107.8	115.6
Other current assets	121.9	151.4	139.4
Total current assets	210.4	259.2	255.0
Total assets	1 355.5	1 420.3	1 313.9
Share capital	63.9	63.9	63.9
Other equity	200.0	182.5	60.7
Total equity	263.9	246.4	124.6
Interest-free long-term liabilities	100.4	117.5	107.9
Interest-bearing long-term debt	876.6	870.0	958.7
Total long-term liabilities	977.0	987.5	1 066.6
Other interest-free current liabilities	76.1	75.3	122.7
Current portion of long-term debt	38.5	111.1	0.0
Total current liabilities	114.6	186.4	122.7
Total equity and liabilities	1 355.5	1 420.3	1 313.9

Prosafe

---

Key figures

	Q4 09	Q3 09	Q4 08	2009	2008
Operating margin	53.6 %	62.3 %	48.9 %	54.9 %	47.3 %
Equity ratio	19.5 %	17.3 %	9.5 %	19.5 %	9.5 %
Return on equity	-15.0 %	121.4 %	101.4 %	87.3 %	46.5 %
Net interest bearing debt (USD million)	826.6	873.3	843.1	826.6	843.1
Number of shares (1 000)	229 937	229 937	229 937	229 937	229 937
Average no. of outstanding shares (1 000)	222 942	222 935	222 928	222 935	227 667
USD/NOK exchange rate at end of period	5.78	5.78	7.00	5.78	7.00
Share price (NOK)	36.85	29.76	26.00	36.85	26.00
Share price (USD)	6.38	5.15	3.71	6.38	3.71
Market capitalisation (NOK million)	8 473	6 843	5 978	8 473	5 978
Market capitalisation (USD million)	1 466	1 184	854	1 466	854

Prosafe

---

Shareholders

AS AT 04.02.2010	No. of shares	Ownership
Folketrygdfondet	24 689 135	10.7 %
Pareto	13 681 645	6.0 %
Brown Brothers Harriman	8 574 884	3.7 %
Clearstream Banking (nom.)	7 972 874	3.5 %
State Street Bank & Trust (nom.)	7 076 270	3.1 %
KAS Depositary Trust (nom.)	7 060 995	3.1 %
Prosafe SE	6 994 355	3.0 %
DnBNOR	5 601 498	2.4 %
JP Morgan Chase Bank (nom.)	5 495 008	2.4 %
BGL BNP Paribas	5 435 202	2.4 %
Total 10 largest	92 581 866	40.3 %

Total no. of shares: 229 936 790

Prosafe

---

Dividend

• Long-term dividend policy targeting 40-50% of net profit paid tri-annually the following year
• Dividend expected to be paid in Q2, Q3 and Q4 2010
• In 2009, NOK 1.35 was paid in dividend

Prosafe

---

12

Agenda

• The quarter in brief
• Financial results
• Operations
• Outlook
• Summary
• Attachments

Prosafe

---

13

Prosafe

---

Recent new contracts

• BP exercised the six-month option with commencement in January 2011 for the continued use of MSV Regalia
• Shell exercised the 30-day option with commencement early May 2010 for the continued use of Safe Astoria
• Contract for Safe Lancia extended until mid April 2010

Prosafe

---

15

Utilisation rate and charter revenue

Prosafe

---

16

Contract status

Prosafe

---

17

Agenda

• The quarter in brief
• Financial results
• Operations
• Outlook
• Summary
• Attachments

Prosafe

---

18

Global operations

• Current operations/location
• Previous operations

Prosafe

---

19

Offshore accommodation markets

Prosafe

---

Market outlook – supply

Dynamically positioned semi rigs

• Advanced units with high operational versatility:
• All water depths, any seabed infrastructure
• Against fixed installations and most floaters like FPSOs, Semis and Spars

*Floatel Superior expected to be delivered H1 2010 and Floatel Reliance expected to be delivered by end of 2010

Anchored semi rigs

• Primary strengths:
• Shallow to medium waterdepths
• Fixed installations
• Some floaters, e.g. TLPs

Prosafe

---

Market outlook – demand

UK and Norwegian North Sea

• Maintenance, upgrade and tie-in work required in coming years
• Four of our semi rigs will operate in the North Sea in 2010
• We expect tenders in 2010 for contracts commencing in 2011 and 2012

Prosafe

---

22

Market outlook – demand

Mexico

• High construction and maintenance activity offshore
• Currently five of our rigs are operating in Mexico

Prosafe

---

23

Market outlook - demand

Emerging markets

Prosafe

---

24

North Sea dayrates (time charter)

Prosafe

---

25

Gulf of Mexico dayrates (bareboat)

Prosafe

---

26

Agenda

• The quarter in brief
• Financial results
• Operations
• Outlook
• Summary
• Attachments

Prosafe

---

27

Summary

• Good market outlook
• Leading market position
• Unique, versatile rig fleet
• Robust financial position
• Solid order backlog

Leading position in a good accommodation market

Prosafe

---

28

Agenda

• The quarter in brief
• Financial results
• Operations
• Outlook
• Summary
• Attachments

Prosafe

---

Debt as of end Q4 2009

Credit facility

• Credit facility was initially drawn in May 2008 at USD 1.1 billion
• Maturity of seven years
• The applicable margin on the credit facility will vary in the range from 0.65% to 0.95% per annum depending on the leverage ratio
• Current credit margin 0.85% above USD 3m LIBOR
• The availability under the credit facility will be reduced semi-annually with USD 70 million. In November 2009 the credit facility was reduced to USD 890 million
• As of end of December 2009, USD 740 million was drawn on the credit facility, meaning that USD 150 million was available as undrawn facilities

NOK 411 million bond loan – maturing March 2010

• NOK 222.5 million outstanding (NOK 188.5 million bought back October 2009)

USD 50 million bond loan – maturing March 2012

NOK 500 million bond loan – maturing October 2013

Prosafe

---

Debt as of end Q4 2009

• Total interest-bearing debt USD 915.1:
• Credit facility: USD 740 million (long-term)
• Bond loan: USD 50 million (long-term)
• Bond loan: NOK 222.5 million (current)

• Bond loan: NOK 500 million (long-term)

• Long-term interest-bearing debt USD 876.6 million:

• Credit facility: USD 740 million
• Bond loan: USD 50 million

• Bond loan: NOK 500 million (USD 86.6 million)

• Current portion of long-term debt USD 38.5 million:

• Bond loan: NOK 222.5 million (USD 38.5 million)

Prosafe

---

Financial covenants as of end Q4 2009

• Financial covenants in the credit facility:
• a Minimum cash of USD 65 million in the group
• a Maximum leverage ratio of 5.0 (4.5 following the second anniversary of the loan agreement, i.e. May 2010)
• a Minimum value adjusted equity ratio of 35 per cent
• a Market value vessels/total commitments above 150 per cent
• a Working capital (incl. unutilised credit lines with maturity in excess of 12 months and excluding short-term portion of long-term debt) larger than zero

• a Maximum 50% of net profit paid in dividend the following year

• Prosafe has during 2009 been in compliance with all financial covenants

Prosafe

---

32
| Rig name | Location | Client name | Type of contract | Firm contract | Option | Dayrate |
| --- | --- | --- | --- | --- | --- | --- |
| Current contract | | | | | | |
| MSV Regalia | | | | | | |
| | Norwegian North Sea, Valhall | BP | Time charter | Jan 11 - Jul 11 | Jan 12 | USD 242 000 |
| | | | | Jan 10 - Jan 11 | | USD 231 000 |
| | | | | Jul 09 - Jan 10 | | USD 220 000 |
| | Yard/mobilisation | | | Dec 08 - Jul 09 | | |
| | UK North Sea, MCP-01 | Aker Kværner | Time charter | Feb 08 - Dec 08 | | USD 210 000 |
| | West Africa, Girassol | Total | Time charter | Dec 05 - Oct 07 | | USD 128 000 - 180 000 |
| Safe Astoria | | | | | | |
| | Philippines, Malampaya | Shell | Time charter | Oct 09 - Jun 10 | Jul 10 | USD 120 000 |
| | Kemaman yard, Malaysia | | | Sept 09 | | Convenience terminated 9 Feb 09, 85% of day rate |
| | Sakhalin Island, Russia | SEIC | Time charter | Dec 07 - Mar 09 | | USD 120 000, standby during winter months USD 60 000 |
| Safe Bristolia | | | | | | |
| | UK North Sea, Buzzard | Nexen | Time charter | Apr 10 - Sep 10 | | USD 325 000 |
| | GoM, Cantarell | Interpetroleum Services (for Pemex) | Bareboat | Mar 09 - Jan 10 | | USD 80 000 |
| | UK North Sea | ConocoPhillips | Time charter | Apr 08 - Sep 08 | | USD 150 000 |
| | | | | | | (+ mob and demob fee) |
| Safe Scandinavia | | | | | | |
| | Norwegian North Sea, Snorre A | StatoilHydro | Time charter | Apr 11 - Sep 11 | | USD 242 000 |
| | Norwegian North Sea, Snorre A | StatoilHydro | Time charter | May 10 - Oct 10 | | USD 242 000 |
| | UK North Sea | Shell | Time charter | Jul 09 - Sep 09 (65 days) | | USD 350 000 |
| | Yard/mobilisation | | | 6 - 7 weeks in June/July 09 | | |
| | Norwegian North Sea, Valhall | BP | Time charter | Dec 08 - Jun 09 | | USD 220 000 |
| | Yard | | | 2 weeks in Dec 08 | | |
| | Norwegian North Sea, Sleipner | StatoilHydro | Time charter | Mar 08 - Nov 08 | | USD 160 000, from 1 - 26 Nov: USD 350 000 |
| | UK North Sea, Britannia | ConocoPhillips | Time charter | Oct 07 - Feb 08 | | USD 185 000 |
| | Norwegian North Sea, Snorre A | StatoilHydro | Time charter | Apr 07 - Sep 07 | | USD 180 000 |
| Safe Caledonia | | | | | | |
| | UK North Sea, Dunbar Elgin | Total | Time charter | Jun 10 - Sep 10 | | USD 220 000 |
| | | | | Apr 09 - Jun 10 | | USD 150 000 |
| | | | | May 07 - Apr 09 | | USD 140 000 |
| | Yard/mobilisation | | | | | 1.5 mth yard stay in Q1 09 |
Prosafe

---

33

Safe Concordia
	GoM, Cantarell	Interpetroleum Services (for Pemex)	Bareboat	May 09 - Oct 09		USD 75 000
	US, Tahiti spar	ChevronTexaco	Time charter	Aug 08 - Jan 09		USD 225 000
	GoM, Cantarell	Interpetroleum Services (for Pemex)	Bareboat	May 06 - Jun 08		USD 75 000
Jasminia
	GoM, Cantarell	Interpetroleum Services (for Pemex)	Bareboat	Feb 09 - Dec 10	Feb 13	USD 48 000
	GoM, Cantarell	Interpetroleum Services (for Pemex)	Bareboat	Feb 08 - Feb 09		USD 48 000
	GoM, Cantarell	Interpetroleum Services (for Pemex)	Bareboat	Oct 03 - Feb 08		USD 21 000
Safe Hibernia
	GoM, Cantarell	Interpetroleum Services (for Pemex)	Bareboat	May 08 - May 11		USD 53 000
	GoM, Cantarell	Interpetroleum Services (for Pemex)	Bareboat	May 03 - May 08		USD 22 000
Safe Lancia
	GoM, Cantarell	Interpetroleum Services (for Pemex)	Bareboat	Oct 08 - Apr 10		USD 75 000
	GoM, Cantarell	Interpetroleum Services (for Pemex)	Bareboat	Apr 03 - Oct 08		USD 42 000
Safe Regency
	GoM, Cantarell	Interpetroleum Services (for Pemex)	Bareboat	Sep 08 - Aug 13		USD 75 000
	GoM, Cantarell	Interpetroleum Services (for Pemex)	Bareboat	Jul 03 - Aug 08		USD 36 000
Safe Britannia
	GoM, Cantarell	Interpetroleum Services (for Pemex)	Bareboat	Oct 08 - Jan 13		USD 85 000
	GoM, Cantarell	Interpetroleum Services (for Pemex)	Bareboat	Oct 03 - Oct 08		USD 44 000
Safe Esbjerg
	Denmark	Maersk	Time charter	Apr 10 - Jun 11	Jun 12	Euro 53 500
	Yard/mobilisation			Feb 10 - Apr 10
	Denmark	Maersk	Time charter	Jun 09 - Feb 10		Euro 63 000
	Denmark	Maersk	Time charter	Jun 05 - Jun 09		Euro 45 000
OPEX per day		Norwegian North Sea		UK North Sea		Other regions
	Dynamically positioned semi-subm. rigs	65 000 - 75 000		45 000 - 60 000		40 000 - 60 000
	Anchored semi-submersible rigs	55 000 - 60 000		35 000 - 50 000		30 000 - 45 000

Prosafe

---

34

Fleet overview

Name	MSV Regalia	Safe Scandinavia	Safe Caledonia
Geographical area	Harsh environment, NCS	Harsh environment, NCS	Harsh environment
Mooring system	DP	12 point chain winches	10 point wire winches
Station keeping	NMD3	Moored	DP2 / TAMS
No of beds	300	583	495
Deck area	3,250 m²	400 m²	900 m²
Payload	1,000 – 2,000 t	1,000 t	700 t

Current contract

Client	BP	Statoil, from May 2010	Total
Field	Valhall, NCS		Dunbar Elgin/Franklin, UK NS
Water depth	70m		93m
Type of installation	Steel platform		Jack-up

Prosafe

---

35

Fleet overview

Name	Safe Astoria	Safe Bristolia	Safe Esbjerg
Geographical area	Moderately harsh env.	Moderately harsh env.	Harsh environment
Mooring system	8 point wire winches	8 point wire winches	4 point wire winches
Station keeping	Moored	Moored	Jack-up
No of beds	245	587	139
Deck area	620 m²	400 m²	750 m²
Payload	1,800 t	1,800 t	variable, max 725 t

Current contract

Client	Shell Philippines	Nexen, from April 2010	Maersk
Field	Malampaya		Gorm, Denmark
Water depth	50m		40-50m
Type of installation	Steel platform		Jacket structure platform

Prosafe

---

36

Fleet overview

Name	Safe Britannia	Safe Lancia	Safe Hibernia
Geographical area	Harsh env.	Moderately harsh env.	Harsh environment
Mooring system	9 point wire winches	8 point chain winches	12 point wire winches
Station keeping	DP2 / TAMS	DP2	Moored
No of beds	812	600	500
Deck area	1,300 m²	1,100 m²	750 m²
Payload	1,245 t (620 DP mode)	626 t	1,000 t

Current contract

Client	Interpetroleum Services	Interpetroleum Services	Interpetroleum Services
Field	Cantarell, GoM	Cantarell, GoM	Cantarell, GoM
Water depth	40-50m	40-50m	40-50m
Type of installation	Jacket structure platform	Jacket structure platform	Jacket structure platform

Prosafe

---

37

Fleet overview

Name	Safe Regency	Safe Concordia	Jasminia
Geographical area	Harsh environment	Benign environment	Benign environment
Mooring system	8 point wire winches	4 point wire winches	8 point wire winches
Station keeping	DP2	DP2	Moored
No of beds	771	390	535
Deck area	800 m²	1,300 m²	690 m²
Payload	550 t	1,400 t	640 t

Current contract

Client	Interpetroleum Services
Field	Cantarell, GoM
Water depth	40-50m
Type of installation	Jacket structure platform
Currently completing five-year classification	Interpetroleum Services
Cantarell, GoM
40-50m
Jacket structure platform
---	---

Prosafe

---

38

Financial calendar and IR contacts

| Financial calendar
- 12 May 2010
- Annual general meeting
- 12 May 2010
- Publication and presentation of Q1 2010 result
- 26 August 2010
- Publication, presentation and web cast of Q2 2010 result
- 4 November 2010
- Publication, presentation and web cast of Q3 2010 result | IR contacts
- Karl Ronny Klungtvedt
- Exec. VP Strategy and Corporate planning
- karl.ronny.klungtvedt@prosafe.com
- Phone: +47 51 64 25 81
- Cell phone: +47 90 88 16 57
- Cecilie Ouff
- Finance Manager
- cecilie.ouff@prosafe.com
- Phone: +47 51 64 25 20
- Cell phone: +47 99 10 94 67 |
| --- | --- |

For more information, please visit www.prosafe.com

Prosafe