Third quarter 2023 results
(Figures in brackets refer to the corresponding period of 2023)
EBITDA for the third quarter was USD 8.4 million (USD 24.2 million). The decrease in EBITDA was mainly driven by lower utilisation during the quarter compared to 2022. Prosafe sees increased vessel demand going forward which is expected to lead to higher utilisation, improved day rates and earnings growth.
Operations, HSSE and backlog
- Q3 2023 utilisation of 52.3% (77.3%), four out of seven vessels operating during the quarter
- Safe Zephyrus, Safe Notos and Safe Eurus had full utilisation in the quarter
- Safe Concordia on hire in US Gulf of Mexico from 9 August, after earning standby rate from 1 August
- Good operating and safety performance on all vessels
- Completed sale of Regalia gangway for USD 1.7 million in quarter
- Backlog of USD 268 million (USD 293 million) at quarter end
- Revenues of USD 32.8 million (USD 63.6 million) and EBITDA of USD 8.4 million ( USD 24.2 million)
- Cash flow from operations of negative USD14.0 million (USD 24.5 million), impacted by lower operating result and higher working capital
- Capex of USD 5.7 million and capitalised mobilisation cost of USD 5.8 million
- Liquidity of USD 49.0 million (USD 74.5 million) at end of quarter
Market and outlook
- Favourable medium- and long-term demand outlook with Prosafe controlling a significant share of open high-end accommodation capacity in 2024 and 2025
- Well positioned to capture increased demand in the North Sea following weak 2023 with the only DP3 vessel available for 2024
- Strong and improving Brazil market with rising day rates and durations on the back of increased demand
- New contracts expected in Brazil which may absorb further high-end units from the North Sea and other regions, further tightening supply
- Liquidity impacted by the current North Sea activity level and capital expenditure plus mobilisation spend for new contracts in Brazil and US Gulf of Mexico (US GoM)
Reese McNeel, CEO (Interim) says, “Our performance improved during the quarter with the Safe Concordia commencing operations in the US Gulf of Mexico in early August, bringing the active fleet to four vessels.
There is high activity tied to projects requiring offshore accommodation with several ongoing client discussions and new tenders expected in the coming months. We control a large share of the open high-end capacity in 2024 and 2025 and are well positioned to capture new work in a tightening market with improving day rates.”
Reese McNeel, CEO (Interim) will on 26 October 2023 at 10:00 a.m. CEST present the results in an audiocast that can be followed live via web streaming at https://wwww.prosafe.com
It will be possible to ask questions during the presentation by using the Q&A tool embedded in the audiocast. These questions will be answered after the presentation. A replay of the audiocast will be made available on Prosafe’s website shortly after.
A complete version of the Q3 2023 earnings release and the Q3 2023 presentationcan be downloaded here: 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
Stavanger, 25 October 2023
For further information, please contact:
Reese McNeel, CEO (Interim)
Phone: +47 51 64 25 17 / +47 415 08 186
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.