Prosafe SE: Third quarter 2013 results
(Thomson Reuters ONE) -
The financial results were record high in the third quarter. With ten out of 11
vessels in full operation during the third quarter, the fleet utilisation rate
was 91 per cent. Prosafe has signed a Letter of Intent for the construction of
two new accommodation vessels.
Financials
(Figures in brackets refer to the corresponding period of 2012)
Operating profit for the third quarter amounted to USD 90.4 million (USD 66.5
million). This quarterly result is the highest ever in Prosafe's history.
Utilisation of the vessels was 91 per cent (85 per cent). In addition to the
increased utilisation, higher day rates have contributed to the improved
results.
Depreciation is somewhat higher than normal due to the planned replacement of
the cranes on Regalia. The residual value of USD 3.4 million of the existing
cranes has been written down to the estimated scrap value.
Safe Scandinavia, Regalia, Safe Caledonia and Safe Bristolia were in full
operation in the North Sea during the quarter.
Safe Lancia, Jasminia, Safe Hibernia, Safe Britannia and Safe Regency were in
full operation in Mexico during the quarter.
Safe Concordia was on contract in Brazil throughout the quarter. The average
effective day rate for the quarter was approximately USD 140 000.
Safe Astoria remained at the yard in Batam, Indonesia during the quarter.
Net financial costs amounted to USD 3.4 million (USD 13.7 million). This
improvement is due to lower interest expenses and favourable revaluation of
forward exchange contracts.
Net profit equalled USD 85.2 million (USD 51.8 million), corresponding to
diluted earnings per share of USD 0.36 (USD 0.23).
Total assets at 30 September amounted to USD 1 543 million (USD 1 449 million).
Net interest-bearing debt equalled USD 613.7 million (USD 661.5 million), while
the book equity ratio increased to 45.7 per cent (34.5 per cent).
Dividend
On 6 November 2013 the Board of Directors resolved to declare an interim
dividend equivalent to USD 0.15 per share to shareholders of record as of 15
November 2013. The shares will trade ex-dividend on 13 November 2013. The
dividend will be paid in the form of NOK 0.89 per share on 27 November 2013.
New builds
Prosafe has agreed a Letter of Intent (Lol) with COSCO (Qidong) Offshore Co.,
Ltd. for the Engineering, Procurement and Construction of two semi-submersible
accommodation vessels, with options for four further units. The vessels will be
the most advanced and flexible units for worldwide operations excluding Norway,
and will be ready for operations in 2016.
The vessels will be of Gusto MSC's Ocean 500 design, and will be equipped with
500 beds, DP3 station keeping systems, 10-point chain mooring and 300 tonne
cranes.
The Lol covers two potential contracts, each in excess of USD 200 million. The
vessels will be financed through cash flow from operations, existing debt
facilities and new debt commitments.
In 2011 and 2012, Prosafe ordered two Norway compliant, semi-submersible
accommodation vessels, Safe Boreas and Safe Zephyrus, from Jurong Shipyard Pte
Ltd. in Singapore. The construction process is going well, and when delivered,
the vessels will be the most sophisticated and well-equipped accommodation
vessels in the market.
Both vessels have already secured contracts. Safe Boreas will work for Lundin
Petroleum in Norway for a minimum six-month period from Q2 2015. Safe Zephyrus
is scheduled to work for Statoil in UK for eight months commencing in the spring
of 2016. Statoil also has an option to extend the contract to a total of up to
three years.
In order to facilitate obtaining the acknowledgement of compliance from the
Norwegian Petroleum Safety Authority and to reduce the risk of carry over work,
the delivery of Safe Boreas will be postponed until late Q3 2014. The delivery
date will still be more than six months ahead of the first contract start-up,
allowing ample time for vessel familiarisation and mobilisation.
Outlook
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-
December 2013, Jasminia until end-November 2013, Safe Hibernia until end-
December 2013, Safe Regency until end-March 2014 and Safe Britannia until the
end of 2014.
The contract with Norske Shell for the use of Regalia at the Draugen facility in
Norway has been extended by another 14 days to 24 November 2013. After
completion of the contract, the vessel will undergo upgrade and a five-year
special periodic survey (SPS), before commencing a contract with Statoil in
Norway in February 2014.
Safe Bristolia is scheduled to operate for Elf Exploration in the UK until mid
December. The client has the option to extend the contract by an additional 14
days. The vessel is scheduled to commence the next contract for BG in the UK in
April next year.
Safe Scandinavia will operate for ConocoPhillips in the UK until mid-November.
After completion of the contract, the vessel will undergo the five-year SPS as
well as a life extension project, before commencing on a contract with Statoil
in Norway in April 2014.
Safe Caledonia is operating for BP in the UK until end-March 2014. Thereafter,
the vessel will operate for Nexen in the UK, starting between May and July 2014.
In Brazil, Safe Concordia is operating for Petrobras on a contract that expires
in June 2014.
Following its yard stay in Batam, Indonesia, Safe Astoria has a contract of a
minimum 11-month period for Shell Philippines, commencing June/July 2014.
The general outlook for the global accommodation market remains positive, driven
by a combination of new fields coming on stream and maintenance/life
extension/upgrades of fields already in production.
In the North Sea, there are a substantial number of potential future projects,
both related to hook-up and commissioning of new production installations and
maintenance and upgrades of existing ones. There are currently eight
accommodation vessels with North Sea capabilities on order, but it is unlikely
that all of them will actually end up in this market. So far, four of these
vessels have been awarded contracts to operate in the North Sea, all at
reasonable day rates.
In Mexico, Pemex appears to still require a substantial amount of beds offshore.
All the accommodation vessels currently in Mexico are working at the Cantarell
field or in adjacent areas. In the longer-term it is anticipated that there
should also be substantial demand from other shallow and deep water fields.
The competitive situation in Brazil remains challenging with a fragmented market
and significantly varying quality of vessels available. There are, however,
signs that day rates are climbing, but in the short-to-medium term, returns are
likely to remain below adequate levels.
However, there has been a considerable growth in demand for accommodation
vessels in Brazil over the past few years arising from demand in the Campos
basin with potentially continued demand growth from this area. In the longer
term, demand may also develop in other oil producing areas, such as Santos and
Espirito Santo.
In other markets, demand tends to be more volatile as they are less mature and
as weather conditions in many cases allow for the requirements to be met by
lower-value vessels such as barges and monohulls.
There are signs that Australia may develop into a more favourable market for
semi-submersible accommodation vessels in the longer term and a few contracts
have already been awarded. Moreover, interesting projects have been identified
both in Southeast Asia and West Africa. As in the Brazilian market, the supply
is fairly fragmented and entry barriers tend to be lower than in Mexico and the
North Sea.
In summary, demand outlook in the global accommodation vessel market remains
positive. There is a substantial capacity growth scheduled for the coming years,
but Prosafe is well positioned to withstand increased competition through
extensive operating experience, and the best, largest and most versatile fleet.
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 570
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: Q3 2013 report, Q3 2013 presentation
Larnaca, 7 November 2013
The Board of Directors of Prosafe SE
Prosafe SE
For further information, please contact:
Karl Ronny Klungtvedt, Chief Executive Officer
Prosafe Management AS
Phone: +47 51 64 25 81
Cecilie Helland Ouff, Senior Manager Finance and Investor Relations
Prosafe AS
Phone: +47 51 64 25 20 / +47 991 09 467
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
Q3 2013 report:
http://hugin.info/64729/R/1741366/585052.pdf
Q3 2013 presentation:
http://hugin.info/64729/R/1741366/585053.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. 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 the information contained therein.
Source: Prosafe SE via Thomson Reuters ONE
[HUG#1741366]
Unternehmensinformation / Kurzprofil:
Datum: 07.11.2013 - 08:30 Uhr
Sprache: Deutsch
News-ID 313794
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contact information:
Town:
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Kategorie:
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