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Prosafe SE: Third quarter 2020 results

Written by Customer Service on . Posted in Public Companies.

(Figures in brackets refer to the corresponding period of 2019)Reported EBITDA for the third quarter was negative by USD 1.2 million (USD 26.3 million positive), reflecting low activity. The company successfully protected its order book through the Covid-19 pandemic. Liquidity reserve per end of quarter is USD 164.5 million. The process with lenders for a sustainable financial solution remains constructive. Although it is too early to say what a final solution may look like, it is anticipated that there will be a significant equalization of debt which is likely to result in minimal or no recovery for current shareholders.

Recent highlightsSuccessfully protected order backlog through Covid-19, although utilization in 2020 specifically is marginalizedOperating status and financial resultsUtilisation of 16.4% in Q3 (48.2%)Reported EBITDA of USD 1.2 million negativeCash flow from operations was USD 12.3 million negative (USD 40 million)Commercial statusOn 26 October 2020, secured a 90-day contract with an option of up to 60 days and start-up in Q2 2022 on the Norwegian Continental ShelfTotal and Shell contracts moved from 2020 to 2021Safe Notos and Safe Eurus back on hireSeveral ongoing tenders for 2021 and 2022Implemented Covid-19 plans to safeguard people and assets, as well as cost-saving initiatives to protect liquidity and efforts to position the company through the turmoilSufficient liquidity buffer based on total liquidity reserve of USD 164.5 million per Q3 2020 (USD 216 million)Remains in constructive dialogue with lenders regarding a sustainable financial solution and aims to conclude the refinancing process by end of 2020. Although it is too early to say what a final solution may look like, it is anticipated that there will be a significant equalization of debt which is likely to result in minimal or no recovery for current shareholders.Jesper K. Andresen, Prosafe’s CEO says, “We are pleased that our organisation has been able to adapt and ensure stability and safety through a very demanding period. Importantly, we have been able to protect our order backlog through Covid-19 by agreeing with clients to move contracts from 2020 to 2021. In addition, we are now observing a slight increase in prospects and tendering activity, especially in the North Sea, for 2021 and 2022. We firmly believe that we are well positioned to ensure our share of this new work.”AttachmentsProsafe Q3 2020 reportProsafe Q3 2020 presentation

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