Prosafe SE

Second quarter and first half report 2016

(Figures in brackets refer to the corresponding period of 2015)
Operations
The fleet utilisation rate in the second quarter of 2016 was 41 per cent (58 per cent).
Safe Boreas commenced the contract with Talisman Sinopec in the UK mid-March and was fully contracted throughout the quarter.
Safe Zephyrus was delivered from the yard in the first quarter of 2016 and received acknowledgement of compliance from the Petroleum Safety Authority Norway, in July. The vessel commenced a contract with Det norske in Norway in late July.
Safe Scandinavia commenced the TSV contract with Statoil in Norway mid-March. Drilling support operations successfully commenced at the beginning of April with a firm contract period until July 2018.
Regalia commenced a contract with Shell in the UK in late May.
Safe Concordia and Safe Caledonia were fully contracted in the quarter.
Safe Bristolia commenced a contract with BG Group in mid-May in the UK for a two-month firm period. This contract has been completed and the vessel is now laid up in Norway.
Safe Notos was delivered from the yard in the first quarter of 2016 and is in transit to Brazil to perform the contract with Petrobras. The vessel is expected to arrive in Brazil early in the fourth quarter of 2016. The Safe Notos contract, as extended, is now for three years plus 222 days and the total contract value is USD 189 million.
Safe Astoria was idle in the quarter and is cold-stacked in Batam, Indonesia.
Safe Lancia is cold stacked in Port Isabel, Texas, USA. The company incurred off-hire and demobilisation costs as well as costs related to the removal of thrusters on the vessel in the second quarter.
Safe Regency has transited from Aruba and is now preparing for lay-up in Curaçao. The company incurred off-hire costs for the vessel in the second quarter.
In June 2016, Safe Britannia was sold for scrap/recycling in the US. The company incurred off-hire and demobilisation costs in the quarter until the vessel was sold.
In August 2016, Jasminia and Safe Hibernia were sold for scrap/recycling in the US. The company incurred lay-up and demobilisation costs in the quarter.
Financials
Revenues for the second quarter of 2016 were USD 115.4 million (USD 92.5 million). This increase reflects that high day rate units have been on contract during the second quarter this year as opposed to last year. This has been partly offset by the closure of the Gulf of Mexico contracts which generated relatively low day rates.