Q2 2009 results - Rising fleet utilisation
(Thomson Reuters ONE) - Operating profit for the second quarter came to USD 46.8 million andnet profit amounted to USD 43.1 million. Utilisation of the rig fleetwas 86 per cent in the second quarter, even though MSV Regalia was inthe yard throughout the quarter. A good market outlook, combined witha robust financial position, provides a good basis for furtherprofitable growth.Financials(Figures in brackets refer to the corresponding period of 2008)After the spin-off of Prosafe Production (the floating productiondivision) in May 2008, only one division remains in Prosafe; theOffshore Support Services. Consequently, no segment information ispresented in the notes to the accounts.In accordance with IFRS, the figures relating to Prosafe ProductionPublic Limited are presented net on a separate line in the incomestatement of Prosafe SE. Thus, when references are made to priorperiods below, these figures are exclusive of the discontinuedoperations.First half 2009Operating profit for the first half of 2009 came to USD 84.3 million(USD 105.4 million). MSV Regalia has undergone a major refurbishmentthroughout the period, and this reduced the utilisation of the rigfleet down to 82 per cent (93 per cent). The impact of the lowerutilisation was partly offset by higher day rates for the rigs onhire.The contract for Safe Astoria was terminated for convenience by theclient in February. The client had originally contracted the rig fora period of around two years from December 2007. Prosafe receives 85per cent of the day rate until the new contract with Shell starts inOctober.Safe Concordia completed the contract in the US Gulf of Mexico inearly February, and commenced operation for Pemex in the Gulf ofMexico on 8 May. Safe Bristolia commenced on a bareboat contract inthe Gulf of Mexico in mid-March.Safe Caledonia has operated for Total in the UK North Sea throughoutthe period, interrupted by a period of 40 days due to a planned yardstay.Safe Scandinavia completed the contract with BP in the Norwegiansector of the North Sea in early June.All other vessels have been fully utilised in the first half year of2009.Net financial costs amounted to USD 4.3 million (USD 29.5 million).This improvement reflects lower interest costs and increased marketvalue of currency forwards as at 30 June 2009.Tax costs expensed in the first half equalled USD 10.6 million (USD3.3 million). The increased level is due to a provision relating toan unrealised currency gain in a Norwegian subsidiary.Net profit amounted to USD 69.4 million (USD 72.6 million excl.discontinued operations), corresponding to diluted earnings per shareof USD 0.31 (USD 0.32 excl. discontinued operations).Total assets at 30 June amounted to USD 1 387.9 million (USD 1 362.7million), while the book equity ratio declined to 13.7 per cent (14.7per cent).Second quarterUtilisation of the rig fleet was 86 per cent (99 per cent) in thesecond quarter. Operating profit amounted to USD 46.8 million (USD63.4 million), which reflects the lower rig utilisation mainly due tothe yard stay of MSV Regalia throughout the second quarter this year.USD 1 million relating to a settlement of a previous operation hasbeen charged to the accounts for the second quarter.Safe Astoria was on 85 per cent of contracted standby day rate inApril and on 85 per cent of full operating day rate from 1 May 2009.Safe Concordia commenced operation for Pemex in the Gulf of Mexico on8 May, and Safe Scandinavia completed the contract with BP in theNorwegian sector of the North Sea in early June.All other vessels have been fully utilised in the second quarter.Net financial items amounted to USD 4.6 million (net costs of USD14.7 million). The main reason for this change is increased marketvalue of currency forwards as at 30 June 2009.Tax costs expensed in the second quarter amounted to USD 8.3 million(USD 0.2 million). This increase is due to a provision relating to anunrealised currency gain in a Norwegian subsidiary.Net profit amounted to USD 43.1 million (USD 48.5 million excl.discontinued operations), corresponding to diluted earnings per shareof USD 0.19 (USD 0.21 excl. discontinued operations).DividendThe board of directors resolved on 26 August 2009 to declare aninterim dividend of NOK 0.35 per share. The holders of the shares atclose on 9 September 2009 will be entitled to a dividend payment on23 September 2009. The shares will trade ex. dividend on 7 September2009.OutlookSeven of the company's rigs are bareboat chartered to InterpetroleumServices, operating for Pemex offshore Mexico. Safe Bristolia starteda one-year contract in Mexico in mid-March. Safe Concordia started a240-day contract 8 May. The other five rigs have firm contracts asfollows: Jasminia until December 2010, Safe Hibernia until May 2011,Safe Lancia until January 2010, Safe Regency until August 2013 andSafe Britannia until January 2013.Safe Esbjerg is in operation for Mærsk Oil & Gas in the Danish NorthSea until June 2011.At the end of July 2009, Safe Scandinavia commenced a 65-day contractfor Shell in the UK North Sea, after completing a five-year specialperiodic survey (SPS) at a yard in Invergordon, Scotland.Safe Caledonia is operating on a long-term contract for Total in theUK North Sea until September 2010.MSV Regalia started operation for BP at the Valhall field on 12 July.This contract has a firm duration until January 2011 with an optionperiod of six months.Safe Astoria will start a 243-day contract, including mobilisationand demobilisation, for Shell in the Philippines early October 2009.Safe Astoria is now in layup at the Kemaman yard in Malaysia, afterSEIC in the beginning of February terminated the contract forconvenience. Prosafe receives 85 per cent of the day rate from SEICuntil the new contract with Shell starts in early October.Within the harsh and semi-harsh offshore environments where most ofProsafe's accommodation rigs operate, there is a good supply-demandbalance and the number of new-builds to be delivered over the nextfew years is limited.In the North Sea, the majority of the fixed installations are matureand require greater maintenance and modifications to upholdproduction and safe operation. Increased recovery and tie-ins ofsatellite fields to existing installations have extended the lifetimefor many fields in the North Sea with ten to 20 years. Therefore, weforesee a good outlook for modification and maintenance projects overthe next years, and we expect that some of these projects willrequire additional accommodation offshore in order to carry out theprojects efficiently.The market for semi-submersible accommodation rigs remains strong inMexico, where Pemex has high activity offshore in order to keep upproduction of the Cantarell field.In summary, we expect a good long-term demand for semi-submersibleaccommodation rigs, especially in Mexico and the North Sea, withgrowth potential in other deepwater regions.RiskProsafe's main operational risks are the day rate level and theutilisation rate of the accommodation fleet. The company's resultsalso depend on operating costs, interest expenses and exchange rates.These risks are described in detail in the chapter 'Risk managementand sensitivities' and in the Directors' report in the Annual Report2008.Statement from the board of directors and president & CEOWe confirm that, to the best of our knowledge, the financialstatements for the first half year of 2009, which have been preparedin accordance with IAS 34 Interim Financial Statements, give a trueand fair view of the company's assets, liabilities, financialposition and results of operations, and that the interim managementreport includes a fair review of the information required under theNorwegian Securities Trading Act section 5-6 fourth paragraph.Prosafe is the world's leading owner and operator of semi-submersibleservice rigs. Operating profit reached USD 232.2 million in 2008. Thecompany operates globally, employs approx. 400 persons and isheadquartered in Larnaca, Cyprus. Prosafe is listed on the Oslo StockExchange with ticker code PRS. For more information, please refer towww.prosafe.com.Attachments: Q2 2009 report, Q2 2009 presentationLarnaca, 27 August 2009Prosafe SEFor further information, please contact:Arne Austreid, President and CEOPhone no: +357 992 75 030Karl Ronny Klungtvedt, Exec. VP Strategy and Corporate PlanningPhone no: +47 908 81 657http://hugin.info/64729/R/1337499/318729.pdfhttp://hugin.info/64729/R/1337499/318730.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 27.08.2009 - 08:31 Uhr
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