Prosafe SE: Third quarter 2017 results
(Thomson Reuters ONE) -
(Figures in brackets refer to the corresponding period of 2016)
Utilisation of 38.9 per cent and EBITDA of USD 27.6 million in the quarter.
Mr. Jesper Kragh Andresen, Prosafe CEO says, "In early August, Safe Boreas
commenced on a 13-month firm contract with Statoil at the Mariner installation
in the UK North Sea. In addition, Statoil can exercise six one-month options.
Total value of the firm contract is approximately USD 131.8 million, including a
re-phasing charge of USD 30 million that was paid to the company in 2016. For
Prosafe this is a very important contract and an equally important customer.
Hopefully the period at the Mariner installation will continue to showcase our
capabilities as operator of the highest quality flotels and creator of customer
satisfaction."
Highlights
* Good operating performance
* Impairment of goodwill, older vessels and Safe Scandinavia
* Delivering on cost and capex reductions. Focus on continuous improvement
remains
* No Lost Time Injury (LTI) in the quarter
Operations
The fleet utilisation rate of the vessels was 38.9 per cent (52 per cent).
The Safe Scandinavia TSV was fully contracted in the quarter to Statoil with a
firm contract period until the end of June 2018.
Safe Caledonia commenced a contract with Total in the UK in mid-May 2017 and was
fully contracted in the quarter. The contract ended late October 2017.
Safe Notos commenced a three-year and 222-day contract for Petrobras on 7
December 2016. From 1 July 2017, Safe Notos was off-hire to conduct preventive
maintenance and repair of the gangway. The vessel recommenced operations with
Petrobras in early August.
Safe Concordia completed the contract with Petrobras in late July. The vessel
then moved from Brazil to Curacao for lay-up.
Safe Boreas commenced the 13-month firm contract period for Statoil at the
Mariner installation in the UK in early August.
Safe Zephyrus, Regalia, Safe Bristolia and Safe Astoria were idle in the
quarter. Safe Zephyrus, Regalia and Safe Bristolia are laid up in Norway, while
Safe Astoria is laid up in Indonesia.
Safe Eurus is in a preserved, strategic stacking mode with COSCO (Qidong)
Offshore Co., Ltd. (COSCO) in China. Consistent with previous quarters, the
company has accrued for lay-up cost for Safe Eurus. According to the agreement
with COSCO, 50 per cent of the accrued lay-up cost shall be paid on delivery and
the remaining 50 per cent after delivery.
The standstill agreement between Prosafe and COSCO relating to Safe Nova and
Safe Vega has been extended until December 2017. Prosafe remains in negotiations
with COSCO and related parties to find a workable commercial solution for these
vessels. If an agreement is not reached, Prosafe has the right to cancel the
Safe Nova and Safe Vega newbuild contracts due to delay and claim a refund of
the instalments plus interest equal to approx. USD 60 million secured by Bank of
China.
Financials
Revenues for the third quarter of 2017 were USD 68.9 million (USD 129.8
million). This decline is due to the lower utilisation referred to above as well
as lower day rates.
Operating expenses declined to USD 41.3 million (USD 61.5 million) mainly due to
lower activity and cost reductions.
EBITDA was USD 27.6 million (USD 68.3 million).
Depreciation has increased to USD 34.8 million (USD 29.1 million) mainly due to
the new build Safe Notos.
Due to a continued weak market outlook an impairment charge has been made to the
third quarter accounts. The impairment amounts to USD 609 million, out of which
USD 226.7 million relates to goodwill which has been fully impaired. The
remaining USD 382.3 million relates to the vessels.
Operating loss equalled USD 616.2 million (operating profit of USD 39.2
million). Excluding the impairment charge, the operating loss is USD 7.2
million.
Net financial costs were USD 16.3 million (USD 168.2 million positive including
a gain on forgiveness of bond debt of USD 197.6 million).
Taxes declined to USD 2.5 million (USD 5.5 million). Net loss amounted to USD
635 million (net profit of USD 201.9 million).
Total assets at 30 September amounted to USD 1,957.3 million (USD 2,711.2
million).
The reduction is due to the impairment of vessel values in the quarter. Net
interest-bearing debt equalled USD 1,139.8 million (USD 1,242.9 million), while
the book equity ratio declined to 23.3 per cent (39.7 per cent) mainly as a
consequence of the impairment charge made in the quarter.
Outlook
Despite positive signals like oil price development, reduced break even levels
across the industry and oil companies returning to cash positive positions,
activity pick-up is slower than expected. As a result Prosafe anticipates a
continued volatile market for the foreseeable future. In the meantime, the
company is continuing its focus on cost and spend efficiencies and business
improvements to protect its financial runway. In combination with efforts to
enhance its strategic position Prosafe aims to be well placed for an upturn.
Prosafe is a leading owner and operator of semi-submersible accommodation
vessels. The company is headquartered in Larnaca, Cyprus and listed on the Oslo
Stock Exchange with ticker code PRS. For more information, please refer to
www.prosafe.com
Larnaca, 1 November 2017
The Board of Directors of Prosafe SE
Attachments:
Q3 2017 report
Q3 2017 presentation
For further information, please contact:
Jesper K. Andresen, CEO
Prosafe Management AS
Phone: +47 907 65 155
Stig Harry Christiansen, Deputy CEO and CFO
Prosafe Management AS
Phone: +47 478 07 813
Cecilie Helland Ouff, Senior Manager Finance and Investor Relations
Prosafe AS
Phone: +47 991 09 467
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
Q3 2017 report:
http://hugin.info/64729/R/2146660/823130.pdf
Q3 2017 presentation:
http://hugin.info/64729/R/2146660/823131.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Prosafe SE via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 02.11.2017 - 06:58 Uhr
Sprache: Deutsch
News-ID 566289
Anzahl Zeichen: 7183
contact information:
Town:
Larnaca
Kategorie:
Business News
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