Prosafe SE: Fourth quarter 2023 results
EBITDA for the fourth quarter was USD (2.7) million (USD 9.6 million). The decrease in EBITDA was mainly driven by lower utilisation, including Eurus SPS off hire, and higher operating expenses during the quarter compared to 2022. Prosafe sees increased vessel demand going forward, which is expected to lead to higher utilisation, improved day rates and earnings growth.
Executive summary
(Figures in brackets refer to the corresponding period last year)
Market and outlook
- Four out of six options declared for Safe Concordia taking firm period through 09 November 2024
- Favourable outlook with Prosafe controlling a significant share of open high-end accommodation capacity from 2024 to 2026
- Strong and improving Brazil market with rising day rates and durations on the back of increased demand. Further long and short-term contracts expected
- North Sea operators planning future campaigns with ongoing bidding for 2025 and contract awards expected in H1 2024. No longer in dialogue regarding the announced NCS contract for 2025
Operations and HSSE
- Q4 2023 utilisation of 49.8% (56.1%), four out of seven vessels operating during the quarter
- Safe Zephyrus, Safe Notos and Safe Concordia had full utilisation in the quarter; Safe Concordia operated partially at reduced rate pending crane repair completed in January 2024
- Safe Eurus was 50% on-hire due to SPS in quarter and is back on-hire
- Good operating and safety performance on all vessels
- Backlog of USD 238 million (USD 332 million) at year end
Q4 financials
- Revenues of USD 29.6 million (USD 38.9 million) and EBITDA of USD (2.7) million (USD 9.6 million)
- Cash flow from operations of USD 3.8 million (USD 24.7 million), impacted by lower operating result
- Capex of USD 4.8 million (USD 1.2 million), mainly relating to SPS of Safe Eurus
- Liquidity of USD 74.6 million (USD 91.6 million) at year end, including USD 34.7 million of proceeds from private placement and secondary offering, confirming strong shareholder support
CEO comment
Terje Askvig, CEO says, “Prosafe is well positioned for new contracts in a tightening accommodation rig market, holding a large share of the open high-end capacity through 2026. Going into the new year, we are progressing ongoing client discussions and see increased tender activity with focus on 2025 and are confident we will see increased backlog during the first half of 2024. This increase in activity is expected to provide a favourable backdrop for refinancing and continued growth.
This is supported by continued strong operational performance on our active rigs, including the successful execution of the special periodic survey and upgrades on Safe Eurus and continued high utilisation rates on all our operating assets.”
Presentation
Terje Askvig, CEO and Reese McNeel, CFO will on 1 February 2024 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.
A complete version of the Q4 2023 earnings release and the Q4 2023 presentation is attached and can be downloaded from https://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
Stavanger, 1 February 2024
Prosafe SE
For further information, please contact:
Terje Askvig, CEO
Phone: +47 51 65 24 30 / +47 952 03 886
Reese McNeel, CFO
Phone: +47 47 51 64 25 17 / +47 415 08 186
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.
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