Prosafe SE

Third quarter 2014 results

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

Operating profit for the third quarter amounted to USD 93 million (USD 90.4 million). This quarterly result is the highest ever in Prosafe's history. Utilisation of the vessels was 96 per cent (91 per cent).

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

Safe Concordia is operating on a three-year contract with Petrobras in Brazil. The average effective day rate in the third quarter was approximately USD 158,000.

Regalia completed the work for Statoil at the Grane field in Norway in early-August and commenced the contract with Talisman for accommodation support at the Montrose field in the UK in late-August.

Safe Bristolia was off-hire for 9 days between completion of the contract with ConocoPhillips at the Judy field in the UK and commencement of the work for BG Group at the Everest field. Operation of the vessel was suspended in mid October due to storm damage to her lifeboats and the vessel has been demobilised for repair works to be carried out.

Safe Astoria completed its Indonesian operations for Swiber in May. In mid-July, the vessel commenced mobilisation to the Malampaya field in the Philippines, with the firm contract period of 11 months starting 1 August.

Net financial costs amounted to USD 17.7 million (USD 3.4 million). This change is mainly due to revaluation of forward exchange contracts.

Net profit equalled USD 67.4 million (USD 85.2 million), corresponding to diluted earnings per share of USD 0.29 (USD 0.36).

Total assets at 30 September amounted to USD 1 769 million (USD 1 543 million). Net interest-bearing debt equalled USD 773.3 million (USD 613.7 million), while the book equity ratio declined to 41.1 per cent (45.7 per cent).

Dividend
The Board of Directors has resolved to declare an interim dividend equivalent to USD 0.053 per share to shareholders of record as of 14 November 2014. The shares will trade ex dividend on 12 November 2014. The dividend will be paid in the form of NOK 0.36 per share on 26 November 2014.

Dividend policy
The Board has re-affirmed the long-term dividend policy of paying out up to 75 per cent of the preceding year's net profit, adopted in 2011.

The exact level of dividend to be paid in each period will depend on the supply/demand balance in the market, the investment level and the overall financial position of the Group.