Prosafe SE — Investor Presentation 2010

May 12, 2010

Prosafe

Larnaca, 12 May 2010

Q1 2010 results

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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.

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Agenda

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

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4

The quarter in brief

• Strong operational performance
• Rig utilisation rate of 73 per cent
• Safe Bristolia mobilised to the North Sea
• Safe Esbjerg Special Periodic Survey (SPS) and steel renewal completed
• Safe Concordia SPS completed
• High tender activity

Leading position in a good accommodation market

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Agenda

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

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Income statement

(Unaudited figures in USD million)	Q1 10	Q4 09	Q1 09	2009
Operating revenues	87.4	106.7	81.6	397.9
Operating expenses	(32.0)	(34.6)	(31.3)	(123.6)
EBITDA	55.4	72.1	50.3	274.3
Depreciation	(15.4)	(14.9)	(12.8)	(55.7)
Operating profit	40.0	57.2	37.5	218.6
Interest income	0.1	0.1	0.2	0.4
Interest expenses	(10.9)	(11.6)	(10.7)	(44.8)
Other financial items	(1.6)	(53.5)	1.6	(33.3)
Net financial items	(12.4)	(65.0)	(8.9)	(77.7)
Profit before taxes	27.6	(7.8)	28.6	140.9
Taxes	(0.8)	(0.7)	(2.3)	(13.7)
Net profit	26.8	(8.5)	26.3	127.2
EPS	0.12	(0.04)	0.12	0.57
Diluted EPS	0.12	(0.04)	0.12	0.57

Prosafe

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Operating revenues

(USD million)	Q1 10	Q4 09	Q1 09	2009
Charter income	81.3	92.8	76.0	368.5
Mobilsaton/demobilisation income	0.2	0.6	1.1	4.0
Other income	5.9	13.3	4.6	25.4
Total	87.4	106.7	81.7	397.9

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Balance sheet

(Unaudited figures in USD million)	31.03.10	31.12.09	31.03.09
Goodwill	226.7	226.7	226.7
Rigs	908.4	913.5	884.1
Other non-current assets	4.6	4.9	4.3
Total non-current assets	1 139.7	1 145.1	1 115.1
Cash and deposits	99.5	88.5	122.7
Other current assets	113.4	121.9	105.6
Total current assets	212.9	210.4	228.3
Total assets	1 352.6	1 355.5	1 343.4
Share capital	63.9	63.9	63.9
Other equity	236.1	200.0	76.0
Total equity	300.0	263.9	139.9
Interest-free long-term liabilities	100.9	100.4	117.1
Interest-bearing long-term debt	873.6	876.6	920.0
Total long-term liabilities	974.5	977.0	1 037.1
Other interest-free current liabilities	78.1	76.1	104.9
Current portion of long-term debt	0.0	38.5	61.5
Total current liabilities	78.1	114.6	166.4
Total equity and liabilities	1 352.6	1 355.5	1 343.4

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Key figures

Operating margin
Equity ratio
Return on equity
Net interest bearing debt (USD million)
Number of shares (1 000)
Average no. of outstanding shares (1 000)
USD/NOK exchange rate at end of period
Share price (NOK)
Share price (USD)
Market capitalisation (NOK million)
Market capitalisation (USD million)

Q1 10	Q4 09	Q1 09	2009
45.8 %	53.6 %	46.0 %	54.9 %
22.2 %	19.5 %	10.4 %	19.5 %
38.0 %	-15.0 %	79.5 %	87.3 %
774.1	826.6	858.8	826.6
229 937	229 937	229 937	229 937
222 942	222 942	222 928	222 935
5.98	5.78	6.68	5.78
31.19	36.85	24.05	36.85
5.22	6.38	3.60	6.38
7 172	8 473	5 530	8 473
1 199	1 466	828	1 466

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Shareholders

AS AT 03.05.2010	No. of shares	Ownership
Folketrygdfondet	18 295 735	8.0 %
Pareto	13 928 387	6.1 %
KAS Depositary Trust (nom.)	8 303 574	3.6 %
Brown Brothers Harriman	8 126 855	3.5 %
State Street Bank & Trust (nom.)	7 882 430	3.4 %
Clearstream Banking (nom.)	7 697 114	3.3 %
Prosafe SE	6 994 355	3.0 %
Odin	5 479 800	2.4 %
JP Morgan Chase Bank (nom.)	5 105 530	2.2 %
DnBNOR	5 038 770	2.2 %
Total 10 largest	86 852 550	37.8 %

Total no. of shares: 229 936 790

Prosafe

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Dividend

• Long-term dividend policy targeting 40-50% of net profit paid tri-annually the following year
• The Board resolved on 12 May 2010 to pay 0.095 USD per share in dividend. The dividend will be paid in the form of NOK 0.58 per share on 3 June 2010

Prosafe

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Agenda

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

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Safe Esbjerg class and steel renewal completed

• Class and steel renewal and refurbishment undertaken at Remontowa, Gdansk
• Steel renewal – hull-lifetime of 20 years
• On time and below budget
• a Capex around USD 7 million
• Recommended operation for Maersk mid-April as planned

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Recent new contracts

• BP exercised the six-month option with commencement January 2011 for the continued use of MSV Regalia
• Shell exercised two short options for the continued use of Safe Astoria, last option runs until late June
• Contract for Safe Lancia extended until mid-May 2010

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Utilisation rate and charter revenue

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Contract status

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Agenda

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

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Global operations

• Current operations/location
• Previous operations

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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 Reliance expected to be delivered by end of 2010

Anchored semi rigs

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

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Market outlook – demand

UK and Norwegian North Sea

• Maintenance, upgrade and tie-in work required in coming years
• Four of our semi rigs are operating in the North Sea in 2010
• We expect several tenders in 2010 for contracts commencing spring/summer 2011 and 2012

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Market outlook – demand

Mexico

• High construction and maintenance activity offshore
• Currently five of our rigs are operating in Mexico
• We expect stable demand going forward

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Market outlook - demand

Emerging markets

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North Sea dayrates (time charter)

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Gulf of Mexico dayrates (bareboat)

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Agenda

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

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Summary

• Good market outlook and high tender activity
• Leading market position
• High quality and versatile rig fleet
• Robust financial position, low-cost financing and efficient tax structure

Leading position in a good accommodation market

Prosafe

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Agenda

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

Prosafe

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Debt as of end Q1 2010

• Credit facility
• q Credit facility was initially drawn in May 2008 at USD 1.1 billion
• q Maturity of seven years
• q 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
• q Current credit margin 0.85% above USD 3m LIBOR
• q 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
• q As of end of March 2010, USD 740 million was drawn on the credit facility, meaning that USD 150 million was available as undrawn facilities
• n USD 50 million bond loan – maturing March 2012
• n NOK 500 million bond loan – maturing October 2013

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Debt as of end Q1 2010

• Total interest-bearing debt USD 873.6 million:
• Credit facility: USD 740 million (long-term)
• Bond loan: USD 50 million (long-term)
• Bond loan: NOK 500 million (long-term)

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Financial covenants as of end Q1 2010

• Financial covenants in the credit facility:
• a Minimum cash of USD 65 million in the group
• a Maximum leverage ratio of 4.5
• 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 Q1 2010 been in compliance with all financial covenants

Prosafe

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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		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		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

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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 - May 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	70 000 - 80 000		45 000 - 60 000		40 000 - 60 000
	Anchored semi-submersible rigs	55 000 - 60 000		35 000 - 50 000		25 000 - 45 000

Prosafe

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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	282	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	Total
Field	Valhall, NCS	Snorre A	Dunbar Elgin/Franklin, UK NS
Water depth	70m	310m	93m
Type of installation	Steel platform	Tension Leg Platform	Jack-up

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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 (UK: 316)	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	Maersk
Field	Malampaya	Buzzard, UK	Gorm, Denmark
Water depth	50m	100m	40-50m
Type of installation	Steel platform	Steel jacket	Jacket structure platform

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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

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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
Marketed for new work	Interpetroleum Services
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	Cantarell, GoM
	40-50m
	Jacket structure platform

Prosafe

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Financial calendar and IR contacts

Financial calendar

• 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

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