First quarter 2021 results
First quarter 2021 results

First quarter 2021 results

Reported EBITDA  for the first quarter was negative by USD 10.1 million (a positive of USD 1.1 million), reflecting lower utilization and lower average day rates. Liquidity reserve at end Q1 was USD 141.7 million. The Company lost the Westcon court case unexpectedly and the judgement implies full payment to Westcon in the sum of NOK 465 million. Prosafe is considering an appeal to the Supreme Court.

Prosafe continues to make good progress with its lenders and is close to reaching an agreement on terms which have support from a very significant lender majority. The Company’s objective is to have formal support from a sufficient amount of creditors required for implementation by June. Although it remains too early to conclude or reveal the full details, it is expected that such solution will imply a significant balance sheet recapitalization, including a debt equitization with minimal recovery for current shareholders.

Recent highlights

  • As part of the ongoing process with lenders, Prosafe has filed for moratorium in Singapore with the support from more than 95% of the lenders. The purpose is to facilitate protection of going concern value pending finalization of the term sheet negotiations with its major creditors and, thereafter, implementation of the agreed solution. Meanwhile, the Company operates on a business- as-usual basis.
  • Prosafe lost the Westcon court case in the Gulating Court of Appeal and is considering an appeal to the Supreme Court.
  • Operating status and financial results:
    • Utilisation of 25.7% in Q1 (32.7%)
    • Reported EBITDA of USD 10.1 million negative (USD 1.1 million positive)
    • Impairment change of USD 40.7 million plus approximately USD 13.8 million of other financial costs made to the Q1 accounts due to the outcome of final Westcon judgement
    • Cash flow from operations was USD 7.6 million negative (USD 13 million negative)
    • Liquidity reserve of USD 141.7 million (USD 183.6 million).
  • Operations & Commercial – increasing activity
    • Safe Zephyrus completed its SPS and commenced the contract for Shell in the UK
    • Safe Caledonia commenced the contract for Total UK
    • Safe Notos completed its SPS and recommenced the contract for Petrobras in Brazil
    • Safe Boreas completed its SPS and commenced the contract for CNOOC in the UK on 20th April 2021
    • Safe Concordia is preparing for contract in Trinidad & Tobago commencing July 2021
    • Ongoing tenders in Brazil and North Sea

Jesper K. Andresen, Prosafe’s CEO says, “The start of the year has been characterized by high activity to get vessels ready for contracts, a constructive process with our lenders and the surprising and disappointing Westcon judgment. The financial result for the quarter reflects low utilization, however, we look forward to seeing 6 of our 7 vessels at work for large parts of the year and to reaching a consensual agreement with our lenders about a sustainable financial solution.”

A complete version of the Q1 2021 earnings release and the Q1 2021 presentation can be downloaded from www.prosafe.com with direct link https://www.prosafe.com/investor-information/reports-results/

Prosafe is a leading owner and operator of semi-submersible accommodation vessels. The company is listed on the Oslo Stock Exchange with ticker code PRS. For more information, please refer to www.prosafe.com

5 May 2021
Prosafe SE

For further information, please contact:

Jesper K. Andresen, CEO
Phone: +47 51 65 24 30 / +47 907 65 155

Stig Harry Christiansen, Deputy CEO and CFO
Phone: +47 51 64 25 17 / +47 478 07 813

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act