Prosafe SE

Second quarter and first half report 2014

Operating profit for the first quarter came to USD 133.4 million and net profit amounted to USD 42.1 million. An interim dividend of NOK 0.98 per share was resolved. At the end of the quarter, the gross value of the contract backlog amounted to USD 2.2 billion including clients' extension options. Although the long-term demand drivers remain intact, there is increased uncertainty regarding the short-to-medium term market development.

Financials
(Figures in brackets refer to the corresponding period of 2013)

Second quarter

Utilisation of the vessel fleet was 84 per cent (84 per cent) in the second quarter. Operating profit amounted to USD 55.0 million (USD 68.7 million).

Regalia, Safe Concordia, Safe Lancia, Jasminia, Safe Hibernia, Safe Britannia and Safe Regency were in full operation throughout the quarter.

The existing contract with Petrobras for Safe Concordia was completed on 10 June, and was immediately followed by a further three-year extension. The average effective day rate for the quarter was approximately USD 148 000.

Safe Caledonia underwent preparatory work at Burntisland in the UK before mobilising for the contract with Nexen in the UK. The contract commenced on 3 June, and the vessel was in full operation throughout the remainder of June.

Regalia was in full operation for Statoil in Norway throughout the second quarter.

Safe Scandinavia commenced the contract with Statoil in Norway on 28 April, and Safe Bristolia started on the contract with ConocoPhillips in the UK on 1 May.

Safe Astoria completed its operation for Swiber in Indonesia on 15 May, and then moved to the yard in Batam for preparation for the contract with Shell at Malampaya in August. The vessel earned a de-mobilisation day rate until it arrived in Batam on 20 May.

Net financial costs were reduced to USD 9.2 million (USD 12.5 million). This change is mainly due to an unrealised gain on the NOK bond loans, which was partly offset by a change in fair value of currency forwards.

Net profit amounted to USD 42.1 million (USD 54.9 million), corresponding to diluted earnings per share of USD 0.18 (USD 0.24).

Total assets at 30 June amounted to USD 1 689.9 million (USD 1 502.9 million), while the book equity ratio declined to 41 per cent (44 per cent). Net interest-bearing debt stood at USD 799 million (USD 651 million).

New builds and projects

The new build projects are progressing well and cost forecasts remain as previously communicated.

Delivery of Safe Boreas, which is being constructed at Jurong Shipyard in Singapore, is scheduled for the fourth quarter of this year. This gives adequate time for mobilisation for the first contract commencing in April/May 2015. Its sister vessel Safe Zephyrus will be ready for operations in the North Sea during the summer of 2015.