Prosafe SE

Operational and financial update Q1 2020

Operational
The fleet utilisation rate in the first quarter of 2020 was 32.7 per cent (Q1 2019: 62.5 per cent).  Prosafe refers to the press release from the March 2020 regarding discussions with clients about current and upcoming contracts in light of COVID-19 and the oil price collapse. These discussions are ongoing. Please see status and update per vessel below.

On 13 March 2020, Safe Zephyrus was awarded a 21-day contract by EnQuest. The vessel was ready to mobilize from Averøy in Norway to support EnQuest’s Thistle project, but was instructed by EnQuest on 20 March 2020 not to mobilize. Prosafe has claimed the full contract value, ca. USD 2 million. After the EnQuest contract, Safe Zephyrus was scheduled to mobilise to Shell at Shearwater to commence a 110-day contract with a 30-day option in Q2 2020. Prosafe has been informed by Shell that this project will not be performed in 2020 and discussions with the client are ongoing.

Safe Caledonia was laid up in the UK. The vessel was initially prepared to commence a 162-day contract with a 30-day option for Total at the Elgin complex in the UK sector of the North Sea from mid-April 2020. As previously informed, Prosafe has now agreed with the client to defer this project by one year.

Safe Notos has been operating on a three-year and 222-day contract for Petrobras in Brazil since 7 December 2016. Safe Eurus has been providing safety and maintenance support to Petrobras during a three-year contract since November last year. On 21 March 2020, client personnel on both vessels were demobilised and the vessels were moved closer to shore. During this period, the vessels were on 95% stand-by day rate. From early April 2020, Prosafe has been requested to agree a suspension of the contract for a period of up to 120 days during which period all logistical services, fuel and catering support will continue to be provided by Petrobras, and any days of suspension will be added to the firm period of the contract. Commercial and payment terms related to the recommencement are subject to ongoing discussions.

Safe Concordia commenced the contract for Equinor at the Peregrino FPSO in the Campos Basin offshore Brazil in mid-January 2020. The contract has a duration of 120 days. The vessel was on full day rate during the whole operation in the quarter. No options are expected to be called by the client.

Safe Scandinavia, Regalia and Safe Boreas were idle in the quarter and were laid up in Norway. On 15 March 2020, the sale of Safe Bristolia for recycling was completed in accordance with all relevant conventions.