Prosafe SE : Prosafe SE: Fourth quarter 2012 results
Operating profit for the fourth quarter came to USD 45.5 million and net
profit amounted to USD 42.3 million. Operating profit for the year 2012 was
USD 222.4 million and net profit for 2012 equalled USD 177.5 million. The
utilization of the rig fleet was 82 per cent in 2012. An interim dividend of
NOK 0.82 per share was resolved.
(Figures in brackets refer to the corresponding period of 2011)
Full year 2012
Operating profit for 2012 amounted to USD 222.4 million (USD 192.3 million),
with utilisation of the rig fleet rising to 82 per cent (80 per cent). The
improved result is mainly attributable to increased utilisation.
Net financial expenses for 2012 amounted to USD 44.4 million (USD 35.2
million). The 2011 figures include a net gain of USD 10.2 million arising from
the sale of shares in Floatel International and a write-off of USD 4.5 million
of non-amortised borrowing costs relating to the previous credit facility. In
accordance with IFRS, interest totalling USD 3.7 million in 2012 paid on the
new build projects and the Safe Caledonia refurbishment project has been
Net profit for 2012 equalled USD 177.5 million (USD 158 million) and diluted
earnings per share were USD 0.80 (USD 0.71).
Operating profit for the fourth quarter amounted to USD 45.5 million (USD 51.8
million). Utilisation of the rig fleet was 82 per cent (80 per cent). The
decline in operating profit is mainly due to Safe Caledonia continuing its
life extension upgrade at the yard during the quarter and Regalia remaining
off-hire after completion of the Yme contract in the third quarter.
Safe Scandinavia, Safe Concordia, Safe Astoria, Safe Lancia, Jasminia, Safe
Hibernia, Safe Britannia, Safe Regency and Safe Bristolia have been on
contract throughout the fourth quarter.
Safe Concordia is operating on a long-term contract in Brazil. In the fourth
quarter the average effective day rate was approximately USD 137 000.
Net financial costs amounted to USD 4.9 million (USD 14.8 million). This
reduction from the 2011 figure is mainly due to a favourable fluctuation in
fair value of currency forwards.
Net profit equalled USD 42.3 million (USD 36.5 million), corresponding to
diluted earnings per share of USD 0.19 (USD 0.16).
Total assets at 31 December amounted to USD 1 487.2 million (USD 1 376.1
million). Net interest-bearing debt equalled USD 706.8 million (USD 667.1
million), while the book equity ratio increased to 34.6 per cent (33.6 per
New build programme
Striking of steel for Safe Boreas took place at Jurong Shipyard (JSPL) in
Singapore in October 2012. The rig will be ready for delivery from the yard in
the summer of 2014.
In November 2012, Prosafe entered into a turnkey contract with JSPL for the
construction of a second harsh environment semi-submersible accommodation rig.
Delivery of the rig, which will be named Safe Zephyrus, is scheduled around
With a similar design to Safe Boreas, the new unit will be the world's most
advanced and versatile accommodation unit, constructed to comply with
Norwegian regulations and capable of operating in the harshest environments
with the highest standards of safety.
The new unit, like the Safe Boreas, will be constructed in accordance with the
GVA 3000E design and equipped with a DP3 (dynamic positioning) system as well
as a 12-point mooring arrangement. This will allow the rig to operate in both
DP and anchored mode, providing maximum cost efficiency and flexibility. The
unit will have the capacity to accommodate 450 persons in single man cabins.
Cost including yard cost, owner-furnished equipment, project management and
financing is estimated at approximately USD 350 million. 20 per cent of the
yard cost was paid on signing of the contract, while the remaining 80 per cent
will be paid on delivery.
JSPL has also granted options for two additional new builds. These options can
be exercised for units which may operate either on the Norwegian Continental
Shelf or for world-wide operations outside the North Sea. In addition, Prosafe
has an existing option granted as an addition to the first new build contract
signed in December 2011. Accordingly, Prosafe currently has a total of three
options for new builds at JSPL in addition to Safe Boreas and Safe Zephyrus.
In December 2012, Prosafe closed a five-year post-delivery term loan facility
of USD 420 million to finance both Safe Boreas and Safe Zephyrus. The facility
has an interest rate of 3-month LIBOR + 2.95 per cent and a repayment profile
of 12 years.
On 4 January 2013, Prosafe successfully completed a NOK 500 million unsecured
bond issue maturing in January 2020. In connection with this bond issue,
Prosafe bought back NOK 156 million of one of the existing bonds, PRS06 PRO,
with a maturity date of 14 October 2013 at 102.25.
The Board of Directors has today resolved to declare an interim dividend
equivalent to USD 0.15 per share to shareholders of record as of 18 February
2013. The shares will trade ex-dividend on 14 February 2013. The dividend will
be paid in the form of NOK 0.82 per share on 28 February 2013.
Six of Prosafe's rigs are on bareboat charters in Mexico for ultimate use by
Pemex. The six rigs have contracts as follows;
Safe Bristolia until mid-March 2013, Safe Britannia until end-March 2013,
Jasminia until late May 2013, Safe Regency until early August 2013, Safe
Lancia until mid-September 2013 and Safe Hibernia until December 2013.
After completion of the contract in Mexico, Safe Bristolia will transit to the
North Sea and commence the contract with Total in May 2013.
Regalia is currently at a yard in Hanøytangen, Norway. The rig has a contract
with Shell in Norway, with a planned start-up in April 2013.
Safe Scandinavia is operating for BP in Norway until 21 February 2013.
Subsequently, the rig has a contract in the UK with a planned start-up in
In the second quarter 2011, Safe Concordia commenced a three-year contract
with Petrobras in Brazil.
Safe Astoria is currently off hire following completion of the contract for
Woodside in Australia in December 2012.
The Safe Caledonia life extension project has now been completed, and the rig
is expected to commence the contract with BP in the UK North Sea in
end-February 2013. The contract expires in March 2014.
Oil companies continue to focus on increased recovery rate, which is leading
to a growing amount of maintenance, upgrade and life extension projects
requiring accommodation rig support.
There is also an increasing amount of work related to hook-up and
commissioning of new production installation. This is particularly visible in
the North Sea market, but there is also evidence of such developments in other
In summary this has lead to a busy market with a high number of prospects.
There are several tenders currently outstanding, which should lead to a number
of contract awards in the market during the winter and spring.
Prosafe is the world's leading owner and operator of semi-submersible
accommodation/service rigs. Operating profit reached USD 222.4 million in 2012
and net profit was USD 177.5 million. The company operates globally, employs
550 people and is headquartered in Larnaca, Cyprus. Prosafe is listed on the
Oslo Stock Exchange with ticker code PRS. For more information, please refer
Larnaca, 8 February 2013
The Board of Directors of Prosafe SE
For further information, please contact:
Karl Ronny Klungtvedt, Chief Executive Officer
Prosafe Management AS
Phone: +47 51 64 25 81
Sven Børre Larsen, Chief Financial Officer
Prosafe Management AS
Phone: +47 909 43 673
Cecilie Helland Ouff, Finance and IR Manager
Phone: +47 991 09 467
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
Q4 2012 report
Q4 2012 presentation
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information contained therein.
Source: Prosafe SE via Thomson Reuters ONE
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