Prosafe SE : Prosafe SE: Second quarter 2013 results
Operating profit for the second quarter came to USD 83.2 million and net
profit amounted to USD 54.9 million. The utilisation of the fleet was 84 per
cent in the second quarter. An interim dividend of NOK 0.89 per share was
resolved. The global market for offshore accommodation vessels remains robust
and Prosafe is confident that further contracts will be entered into over the
(Figures in brackets refer to the corresponding period of 2012)
Utilisation of the fleet was 84 per cent (78 per cent) in the second quarter.
Operating profit amounted to USD 68.7 million (USD 49.8 million).
Safe Caledonia, Safe Concordia, Safe Lancia, Jasminia, Safe Hibernia, Safe
Britannia and Safe Regency were on contract throughout the quarter.
Safe Concordia is operating on a long-term contract in Brazil. In the second
quarter, the average effective day rate was approximately USD 144 000.
Safe Scandinavia commenced the contract with ConocoPhillips at Jasmine in UK
on 6 April, and has been in operation since then.
Regalia commenced operation for Shell at the Draugen field in Norway on 30
April, and was in operation throughout May and June. Due to the yard stay
before contract commencement, operating expenses in the second quarter were
approximately USD 2 million higher than in normal operation.
Safe Bristolia commenced the contract for Elf Exploration UK on 3 May. Due to
the yard stay and preparation for contract commencement in the North Sea,
operating expenses in the second quarter were approximately USD 4.5 million
higher than in normal operation.
Safe Astoria remained idle throughout the quarter.
Net financial costs declined to USD 12.5 million (USD 13.3 million). Interest
costs were lower mainly due to lower interest rates and capitalisation of
interest costs relating to the new build projects.
Net profit amounted to USD 54.9 million (USD 35.9 million), corresponding to
diluted earnings per share of USD 0.24 (USD 0.16).
Total assets at 30 June amounted to USD 1 502.9 million (USD 1 389.8 million),
while the book equity ratio rose to 44 per cent (34.7 per cent). Net
interest-bearing debt stood at USD 651 million (674 million).
On 21 August 2013, the Board of Directors resolved to declare an interim
dividend equivalent to USD 0.15 per share to shareholders of record as of 30
August 2013. The shares will trade ex-dividend on 28 August 2013. The dividend
will be paid in the form of NOK 0.89 per share on 11 September 2013.
Five of Prosafe's vessels are on bareboat charters in Mexico for ultimate use
by Pemex. The five vessels have contracts as follows; Safe Lancia until
mid-September 2013, Jasminia until end-October 2013, Safe Hibernia until
December 2013, Safe Regency until end-March 2014 and Safe Britannia until end
On 30 April, Regalia commenced a 180-day contract with Norske Shell at the
Draugen facility, Norway. Shell recently exercised a one-month option,
extending the contract throughout October 2013. In addition, Prosafe has
granted Shell an additional 14-day extension option. After completion of the
contract, the vessel will undergo an upgrade and a five-year special periodic
survey (SPS), before commencing on a contract with Statoil in Norway next
Safe Bristolia commenced a 173-day contract with Elf Exploration in the UK on
After completion of the current contract with ConocoPhillips in UK, Safe
Scandinavia will undergo an upgrade/life extension project together with the
five-year SPS, before commencing on a contract with Statoil in Norway next
Safe Caledonia is operating for BP in the UK sector of the North Sea until
end-March next year. Thereafter, the vessel will operate for Nexen in the UK
sector of the North Sea. The contract with Nexen has been extended to a
330-day contract at a day rate of USD 235 000.
In Brazil, Safe Concordia is operating for Petrobras on a contract until June
Safe Astoria is currently idle and is at the yard in Batam, Indonesia. The
vessel has a contract with a minimum duration of 11 months for Shell
Philippines, commencing June/July 2014.
Driven by a combination of maintenance and modification projects and new
developments, the market for offshore accommodation in the North Sea has been
growing in recent years, and the demand outlook remains strong. The tendering
activity was at a high level in the first half of the year, and it is
anticipated to be somewhat lower in the second half.
In Brazil and Mexico, there are a number of opportunities and tenders for
long-term requirements, mainly driven by maintenance and improved oil recovery
(IOR) projects. However, particularly in Brazil, the number of potential
suppliers has increased and competition is strong.
In summary, the global market for offshore accommodation vessels remains
robust. With a number of bids still outstanding, Prosafe is confident that
further contracts will be entered into over the coming months.
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,
employs570 people and is headquartered in Larnaca, Cyprus. Prosafe is listed
on the Oslo Stock Exchange with ticker code PRS. For more information, please
refer to www.prosafe.com.
Attachments: Q2 2013 report, Q2 2013 presentation
Larnaca, 22 August 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, Senior Manager Finance and Investor Relations
Phone: +47 991 09467
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
Q2 2013 presentation
Q2 2013 report
This announcement is distributed by Thomson Reuters on behalf of Thomson
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: Prosafe SE via Thomson Reuters ONE
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