Slide 1: Q2 and first half 2024 Results
(Apr 5th, 2024 @ 13:47): Q2 and first half PN: New image 2024 Results 15 August 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 Q2 2024
Key events Q2 2024 Operations and HSSE ▪ Good operating and safety performance on all vessels ▪ Utilisation of 56%, four out of seven vessels operating during the quarter ▪ Strong commercial performance (Apr 5th, 2024 @ 13:47): PN: New image ‒ Conditional Letter of Intent (LOI) for Safe Boreas signe
Slide 4: LoI for Boreas and Caledonia, building backlog in 2025-2027
LoI for Boreas and Caledonia, building backlog in 2025-2027 - Firm/option - SPS/Contract preperation - LOI/option 4
Slide 5: Safe Boreas preparing for long-term contract
Safe Boreas preparing for long- term contract ▪ Gangway connected operations to support project offshore Western Australia ▪ Firm duration of 15 months with up to 6 months of options ‒ Start-up between 1 October 2025 and 1 April 2026 in Australia ▪ Contract value from USD 75-100 million depending on
Slide 6: Safe Caledonia awarded UK North Sea LoI
Safe Caledonia awarded UK North Sea LoI ▪ Gangway connected operations to support Ithaca Energy on the Captain field ▪ Firm duration of 6 months with up to 3 months of options ‒ Start-up in June 2025 ▪ Contract value from USD 26-37 million depending on options ▪ SPS and maintenance prior to contract
Slide 7: Market
Market 7
Slide 8: Market tightening to 2030 and beyond
Market tightening to 2030 and beyond ▪ Brazil a key demand driver as new Offshore accommodation demand and supply development (vessel years) FPSOs come on stream ▪ Brazilian market driven by long term Forecast maintenance, with long duration 28,7 Assuming no new units enter the market contracts and
Slide 9: Rising utilization drives opportunity for available supply
Rising utilization drives opportunity for available supply Active competing supply: Implied utilisation ▪ Based on fixed supply of 23 active units, utilisation expected match the 2014 peak levels by 2025/26 ‒ 2013/14 day rates were ~USD 175k in Brazil and USD ~300k/day+ in the North Sea ▪ 6 non-acti
Slide 10: Brazil – Continued strong demand development
Brazil – Continued strong demand development ▪ Analysts forecast robust production growth from ~3.0 Brazil Activity (FPSO growth) million boepd in 2023 to > ~5.0 - 6.0 million boepd in 2030 ▪ On-order pipeline: 19 FPSOs ordered ▪ Additional pipeline: 20 additional units may be ordered ▪ New FPSOs dr
Slide 11: North Sea Market – Continued recovery in rates and demand
North Sea Market – Continued recovery in rates and demand Norway Day Rate Development ▪ 2011-2014, North Sea generated significant activity 400000 ‒ New field developments and hook-ups 350000 ‒ Drove high rates and newbuild boom 300000 (Dayrate) 250000 Current Market: $150 - $200k p.d. ▪ Market rebo
Slide 12: Rest of World with improved day rates and opportunities
Rest of World with improved day rates and opportunities ▪ Includes Australia, US Gulf of Mexico, Guyana, Trinidad RoW day rate development (USD/d) and Tobago, Africa and Asia ‒ Excludes Mexico which is largely self-contained 400000 2 Month Job ▪ Locations, durations and day rates more unpredictable
Slide 13: Indicative earnings potential in an improving market
Indicative earnings potential in an improving market Fleet EBITDA potential, assuming re-activation of Current NIBD of USD 352m5 vs EBITDA potential Caledonia and Boreas, Concordia SPS and Eurus / Notos day rate reset USD 125m USD 200m USD 275m Current Peak2 Growth EBITDA USD million EBITDA EBITDA m
Slide 14: Attractive enterprise value to replacement cost
Attractive enterprise value to replacement cost 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 67% 1 200 70% 61% 60% 55% 1 000 50% 800 39% 40% 35%
Slide 15: Operations
Operations 15
Slide 16: Stable operations
Stable operations Caledonia Scandinavia Boreas ▪ All three Brazil vessels with 98% to 100% utilisation with Petrobras Concordia ▪ Safe Concordia with 100% utilisation ‒ On contract in US Gulf of Mexico until November Zephyrus 2024, with options until February 2025 ▪ LoI signed for Safe Boreas and fo
Slide 17: Backlog extending into 2027
Order backlog (USD million) Backlog extending 318 287 323 7 into 2027 257 220 7 00 7 2 26 ▪ Safe Eurus, Safe Notos, Safe Zephyrus and 2 2 7 Safe Concordia on contract and working in 2024 Q2 2 Q 2 Q4 2 Q 24 Q2 24 ▪ Backlog of USD 323 million, net increase of Backlog ptions oI oI ptions USD 102 millio
Slide 18: Financials
Financials 18
Slide 19: Operating revenues
Operating revenues Operating revenues and EBITDA (USD million) ▪ Charter income of USD 34.2 million, in line 45 with previous quarter and driven by stable utilisation 35 1 1 ▪ EBITDA of USD 6.6 million reflecting stable 2 31 1 33 33 utilisation 25 29 2 15 19 8 7 7 5 -3 -5 -10 -15 Q2'23 Q3'23 Q4'23 Q
Slide 20: Income statement
Income statement Q2 24 Q2 2 6 24 6 2 2 2 perating revenues 4,2 2 .0 6 ,2 . 7,7 perating expenses 27,6 0. 4,4 . 0 ,2 ▪ Improved operating revenue and result due to four operating vessels in quarter Depreciation , 7.0 , 4. , compared to two in same quarter last year ▪ Interest expense was USD 7.8 mill
Slide 21: Balance sheet
0.06.24 0.06.2 . 2.2 Balance sheet essels 7 , .7 ,7 ther non current assets 2,4 . , ccounts and other receivables 22, 7. 24, ther current assets , 7. 7,7 ▪ Total assets of USD 472 million ash and deposits 6 , 7 .2 74,6 ▪ Cash position of USD 65.9 million ▪ Equity ratio of 3.9% ▪ Q2 NIBD2 of USD 352.
Slide 22: Operating cash flow
Operating cash flow Cash flow in the quarter (USD million) ▪ Operating cash flow of USD 15.5 million in Q2 2024 4 66 6 2 7 2 ▪ EBITDA USD 6.6 million mainly driven by 7 high utilisation ▪ Capex spend of USD 4.2 million in Q2 ▪ Working capital USD 12.1 million, impacted positively by up-front payment
Slide 23: Summary and outlook
Summary and outlook 23
Slide 24: Summary
Summary ▪ Good operating and safety performance on all vessels ▪ Positive commercial development with LOI signed for Safe Boreas and Safe Caledonia ▪ Petrobras expressing intention to extend Safe Zephyrus and discussions ongoing ▪ Improving Brazil market with further long and short-term contracts ex
Slide 25: Appendix
Appendix 25
Slide 26: Vessel update - Brazil
Vessel update - Brazil Safe Eurus Safe Notos Safe Zephyrus DP3 – Worldwide1 DP3 – Worldwide1 DP3 - Worldwide ▪ Contracted to Petrobras until Q1 2027 ▪ Contracted to Petrobras until Q3 2026 ▪ Contracted to Petrobras until February 2025 ▪ 97% utilisation in 2024 ▪ 100% utilisation in 2024 ▪ 99% utilis
Slide 27: Vessel update – North Sea and rest of world
Vessel update – North Sea and rest of world Safe Boreas Safe Caledonia Safe Concordia Safe Scandinavia DP3 - Worldwide TAMS - UK North Sea DP2 – Worldwide2 TSV/accommodation - UK / NCS ▪ LoI signed for operations in Australia ▪ LoI signed for UK. Start-up June 2025. ▪ Firm contract extended to 10 ▪
Slide 28: SPS/maintenance capex
SPS/maintenance capex SPS Schedule ▪ Maintenance capex of ~USD 1-3 million per vessel per year. Higher 2025 2026 2027 2028 in Brazil than North Sea and increasing over time due to increasing age of assets Boreas Q1 / Q2 prior to ▪ 5-year SPS cost of USD 9 to 11 million per vessel, including life con
Slide 29: 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 30: Analytical information
Analytical information P&L information Indicative opex/day by region Item 2024 2025 Comment Region 2024 / 2025 Opex Estimated Estimated Estimated (USDm) (USDm) (USDk/day) SG&A1 ~18-20 ~20-21 SG&A increase driven by increased activity UK (DP-Boreas/Zephyrus) 35-45k Depreciation ~32-33 ~33-34 Straight
Slide 31: Outstanding debt
Outstanding debt Two tranches Main tranches COSCO Sellers Credit Debt maturity profile Outstanding debt $343m (250m + 93m Notos) $81.5m Pledged vessels Boreas, Zephyrus, Caledonia, Concordia, Eurus Scandinavia, Notos Interest rate SOFR + Credit Adjustment Spread* + 2% 2.5%. Unhedged COSCO 343 Amorti
Slide 32: 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 2023. The deferred tax assets are currently not recognized in the financial statements. In Q4 2023, the Norwegian tax auth
Slide 33: 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 prosafe.com