Prosafe SE: Third quarter 2018 report - Renewed, refinanced and adding order backlog

In the third quarter, Prosafe finalised the transforming agreements with COSCO and its lenders, secured several contracts and extensions and grew the firm order book.  EBITDA  for the third quarter amounted to USD 31.3 million (USD 29.6 million). Cash flow from operations was USD 26.6 million (USD 19 million).

"Following the agreements with Cosco and lenders from August to reposition the company, it is promising to see growth in order intake after several years of falling order backlog. We are especially glad to see that maintenance and modification work, which has traditionally been Prosafe's bread and butter, is being sanctioned again", says Prosafe's CEO Jesper K. Andresen. "Since the start of this year we have been awarded two such contracts. We are also generally observing increased tendering activity in the North Sea and internationally. With a renewed fleet including the possibility to take delivery of three additional vessels, we are well positioned to take our share of this upcoming work."

Recent highlights

• Transforming agreements with COSCO and lenders were approved and are effective from 31 August.
• Continued improvement of the fleet utilisation at 48.1 per cent (38.9 per cent) and good operating performance in the quarter.
• Grew firm order book.
• EBITDA of USD 31.3 million (USD 29.6 million) reflecting improved utilisation and cost control partially offset by lower average day rates and non-recurring costs (USD 1.8 million).
• Improved cash flow from operations in Q3 at USD 26.6 million (USD 19 million).
• In September, the Safe Caledonia was awarded a contract by a major operator in the UK with a firm period of four months plus two months of options in 2019.
• In September, Equinor and Prosafe agreed an addendum to the contract which extends Safe Boreas' firm operational period through June 2019 with additional six one-month options.
• In October, Safe Zephyrus was awarded a contract by BP to provide support at the Clair Ridge platform in the UK. The duration of the contract is five months with a one-month option, and is scheduled to commence mid-May 2019 following the completion of the Johan Sverdrup contract.

A complete version of the Q3 2018 earnings release is attached and can be downloaded from www.prosafe.com and 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

6 November 2018
Prosafe SE

Attachments:
Q3 2018 report
Q3 2018 presentation

For further information, please contact:

Jesper K. Andresen, CEO
Phone: +47 907 65 155

Stig Harry Christiansen, Deputy CEO and CFO
Phone: +47 478 07 813