Slide 1: Q4 2023 Results
Q4 2023 Results 01 February 2024
Slide 2: Disclaimer
Disclaimer All statements in this presentation other than statements of historical fact are forward-looking statements, which are subject to a number of risks, uncertainties, and assumptions that are difficult to predict and are based upon assumptions as to future events that may not prove accurate.
Slide 3: Key events Q4 2023
Key events Q4 2023 Outlook ▪ Four out of six options declared for Safe Concordia, increasing firm backlog with USD 12.7 million and extending the fixed term to November 2024 ▪ Controlling significant share of high-end available accommodation capacity in 2024-2026 ▪ North Sea operators planning futur
Slide 4: Market
Market 4
Slide 5: Late-cyclical market trailing E&P spending and drilling rates
Late-cyclical market trailing E&P spending and drilling rates Growth in E&P Capex vs. fleet utilisation Trailing 12-month average fixture rates Jack-up vs. accommodation Prosafe’s annual fleet utilisation (rhs) Growth E&P capex Accommodation (LHS) JU Rigs (RHS) 40% 100% 350 200 90% 180 30% 300 JU ri
Slide 6: Rates in Brazil and the North Sea reaching 2015 levels
Rates in Brazil and the North Sea reaching 2015 levels Brazil day rate development (USD/d) North Sea day rate development (USD/d) 200 000 400 000 180 000 350 000 160 000 Latest datapoint 300 000 Latest datapoint 120k-130k at 200-210k 140 000 250 000 120 000 Latest contract 100 000 200 000 Latest con
Slide 7: Durations, backlog and contract horizon confirm tight market
Durations, backlog and contract horizon confirm tight market1 Median backlog per rig Median revenue backlog per rig Median fixing horizon (months) (USD million) (years to end of last contract)2 1) Includes high end (tier-1) units in North Sea, Brazil, GoM, Canada and Australia (13 units), including
Slide 8: Brazil FPSO growth driving increased demand
Brazil FPSO growth driving increased demand Brazil market (units)1 Floating production units in Brazil2 Potential FPSO driven demand 1) Source: Prosafe, company and market reports 8 2) Source: Petrobras Strategic Plan 2024-28, market reports
Slide 9: Tight North Sea market with Prosafe holding capacity
Tight North Sea market with Prosafe holding capacity North Sea capable accommodation rigs (UK+NCS) Comment Vessel 2023 2024 2025 2026 2027 ▪ North Sea operators planning future Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 campaigns Safe Boreas DP3 vessel in Region (UK and NCS capable)
Slide 10: Past EBITDA per vessel from current fleet
Past EBITDA per vessel of USD 29 million from current fleet1 53 50 ~USD 50m breakeven EBITDA for newbuild2 (day rate of ~USD 200k/day) 45 42 38 36 34 31 EBITDA of USD 29 million / vessel (day rate of ~USD 145k/day) 22 11 7 3 1 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023E 1) Base
Slide 11: Indicative earnings potential in an improving market
Indicative earnings potential in an improving market Current fleet EBITDA potential Current NIBD of USD 345m5 vs EBITDA potential Current Peak2 Growth USD 125m USD 200m USD 275m USD million market1 2014-15 Case3 EBITDA EBITDA EBITDA EBITDA/vessel North Sea 22 50 40 EBITDA/vessel Brazil/RoW 25 30 30
Slide 12: Enterprise value to replacement cost among the lowest
Enterprise value to replacement cost among the lowest Accommodation vessels attractively priced compared Low Prosafe asset valuation relative to replacement cost2 to other assets1 100% USD million EV / Replacement Cost 1 600 90% USD 1 – 1.5 bn 80% 1 400 70% 1 200 61% 60% 57% 56% 1 000 50% 46% 800 40
Slide 13: Operations
Operations 13
Slide 14: Good operations
Good operations Caledonia Scandinavia Boreas ▪ Safe Notos and Safe Zephyrus on contract with Petrobras in Brazil with 100% utilisation Concordia ▪ Safe Concordia on-hire in US Gulf of Mexico and extended to 09 November 2024 with Zephyrus additional options outstanding ▪ Safe Eurus was off-hire for S
Slide 15: Backlog into 2027
Order backlog (USD million) Backlog into 2027 25 25 19 19 19 332 ▪ Year-end backlog of USD 238 million 316 299 268 238 ▪ Safe Eurus, Safe Notos, Safe Zephyrus and Safe Concordia contracts Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 ▪ Safe Concordia firm contract extended to 9 Backlog Options November 2024 with 2x
Slide 16: Improved utilisation in 2024 with 4 of 7 rigs operating
Improved utilisation in 2024 with 4 of 7 rigs operating 2023 2024 2025 2026 2027 Vessel Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Safe Zephyrus Petrobras (Brazil) North Sea Safe Eurus Petrobras (Brazil) Petrobras (Brazil) Safe Notos Petrobras (Brazil) Petrobras (Brazil) Safe Concor
Slide 17: Financials
Financials 17
Slide 18: Operating revenues
Operating revenues Operating revenues and EBITDA (USD million) 50 ▪ Charter income of USD 29 million in Q4, with lower utilisation due to Safe Eurus SPS 40 4 ‒ USD 1 million other income in Q4 35 2 30 1 ▪ EBITDA negatively impacted by off hire of 31 29 Safe Eurus for SPS during the quarter 20 2 19 0
Slide 19: Income statement
Income statement (Unaudited figures in USD million) Q4 2023 Q4 2022 12M 2023 12M2022 ▪ Operating result before depreciation (EBITDA) Operating revenues 29.6 38.9 97.7 198.9 of USD (2.7) million in Q4 and USD Operating expenses (32.3) (29.3) (108.2) (137.5) (10.5) million for 2023 Operating results b
Slide 20: Balance sheet
Balance sheet (Unaudited figures in USD million) 31.12.23 31.12.22 Vessels 383.7 376.8 ▪ Total assets of USD 492.7 million, reduction New builds 0.0 0.0 from last year mainly related to the reduction Other non-current assets 1.8 1.2 in cash balance Total non-current assets 385.5 378.0 Accounts and o
Slide 21: Operating cash flow
Operating cash flow Cash flow in the quarter (USD million) ▪ Operating cash flow of USD 3.8 million in Q4 and USD (11.5) million for full year ▪ Capex spend of USD 4.8 million in Q4 driven by Safe Eurus SPS and USD 37.7 million for full year ▪ Positive working capital impact due to increase in accou
Slide 22: Summary and outlook
Summary and outlook 22
Slide 23: Summary
Summary ▪ Good operating and safety performance on all vessels ▪ 2023 has been a challenging year with lower utilisation than expected and increased costs related to mobilisation, hull cleaning and SPS ▪ Strong investor support during the year with two private placements ▪ Four out of six option per
Slide 24: Appendix
Appendix 24
Slide 25: Vessel update - Brazil
Vessel update - Brazil Safe Eurus Safe Notos Safe Zephyrus DP3 – Worldwide1 DP3 – Worldwide1 DP3 - Worldwide operations ▪ Contracted to Petrobras until February 2027 ▪ Contracted to Petrobras until July 2026 ▪ Contracted to Petrobras until February 2025 ▪ 100% utilisation in 2023 excluding SPS ▪ 100
Slide 26: Vessel update – North Sea and Gulf of Mexico
Vessel update – North Sea and Gulf of Mexico Safe Concordia Safe Boreas Safe Caledonia Safe Scandinavia DP2 – Worldwide2 DP3 - Worldwide TAMS - UK North Sea TSV/accommodation - UK / NCS ▪ Firm contract extended to 10 ▪ Actively marketed, currently in ▪ Actively marketed, currently in ▪ Tender assist
Slide 27: Two newbuilds available at yard
Two newbuilds available at yard ▪ Only two DP3 newbuild semis available at yard ‒ 500 POB and suited for Petrobras requirements ‒ Ongoing dialogue with the yard on how to facilitate delivery in expected future Petrobras tenders ‒ Long-term contracts required to justify delivery ‒ Typhoon in late Sep
Slide 28: SPS/maintenance capex
SPS/maintenance capex ▪ Maintenance capex of ~USD 1-2 million per SPS Schedule vessel per year. Higher in Brazil than North Sea and increasing over time 2024 2025 2026 2027 ▪ 5-year SPS cost of USD 5 to 7 million per Boreas Jan 2025 vessel, excluding life extension works Zephyrus Nov 2025 ▪ 10-year
Slide 29: Analytical information
Analytical information P&L information Indicative opex/day by region Item 2024 Comment Region 2024 Opex Estimated Estimated (USDm) (USDk/day) SG&A ~18-201 SG&A may increase depending on activity UK (DP-Boreas/Zephyrus) 35-45k Depreciation ~32-33 Straight line depreciation UK (Moored – Caledonia) 25-
Slide 30: Outstanding debt
Outstanding debt Two tranches Main tranche COSCO Sellers Credit Debt maturity profile Outstanding debt $343m (250m + 93m Notos) $93m Pledged vessels Boreas, Zephyrus, Caledonia, Concordia, Eurus Scandinavia, Notos Interest rate SOFR + Credit Adjustment Spread* + 0% (increase to 2% from 2026) 2.5%. U
Slide 31: Tax
Tax ▪ Prosafe SE is a permanent tax resident in Norway and its Norwegian tax resident subsidiaries have a base for deferred tax assets of approximately USD 1.7 billion as at end 2022. The deferred tax assets are currently not recognized in the financial statements. In Q4 2023, the Norwegian tax auth
Slide 32: We are headquartered in Norway and have offices in the UK, Brazil and Singapore
We are headquartered in Norway and have offices in the UK, Brazil and Singapore Head office: Forusparken 2 N-4031 Stavanger Norway prosafe.com