Prosafe Se · OSL:PRS

Prosafe — Q1 2024 Earnings Presentation

31 slides from Prosafe's earnings presentation, May 8, 2024

  1. Slide 1: Q1 2024 Results

    Q1 2024 (Apr 5th, 2024 @ 13:47): PN: New image Results 08 May 2024

  2. 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.

  3. Slide 3: Key events Q1 2024

    Key events Q1 2024 Operations and HSSE  Good operating and safety performance on all vessels  Utilisation of 56.3%, four out of seven vessels operating during the quarter  Safe Concordia, Safe Notos and Safe Zephyrus with 100% uptime. Safe Eurus had 95% utilisation due to minor repairs (Apr 5th,

  4. Slide 4: Market

    Market 4

  5. Slide 5: Improved utilisation in 2024 with 4 of 7 rigs operating

    Improved utilisation in 2024 with 4 of 7 rigs operating Vessel 2024 2025 2026 2027 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Safe Zephyrus Petrobras (Brazil) Safe Eurus Petrobras (Brazil) Safe Notos Petrobras (Brazil) Petrobras (Brazil) Safe Concordia US Gulf of Mexico Safe Boreas DP3 vessel (

  6. 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) – 365 days operations North Sea day rate development (USD/d) – seasonal operations 200 000 400 000 180 000 350 000 160 000 Latest datapoint 300 000 Latest ~120k-130k datapoints at 140 000 ~160-210k 250 000 120

  7. Slide 7: 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 +29% Incremental Demand 13 90 Contracted Forecast 88 12 84 Contracted 11 80 77 10 10 72 70 9 66 63 64 62 58 53 51 48 46 42 36 34 32 29 2021 2022 2023 2024 2025 2026 20

  8. Slide 8: 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 356m5 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

  9. Slide 9: Enterprise value to replacement cost attractive in segment

    Enterprise value to replacement cost attractive in segment 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 68% 70% 1 200 58% 60% 1 000 49% 47% 50% 4

  10. Slide 10: Operations

    Operations 10

  11. Slide 11: Stable operations

    Stable operations Caledonia Scandinavia  Safe Notos and Safe Zephyrus on contract Boreas with Petrobras in Brazil with 100% utilisation  Safe Eurus on contract with Petrobras with 95% utilisation in Q1 Concordia  Safe Concordia on-hire in US Gulf of Mexico with 100% utilisation Zephyrus  TSV Saf

  12. Slide 12: Backlog into 2027

    Order backlog (USD million) Backlog into 2027 25 19 19 19  Backlog of USD 218 million at end Q1 6  Safe Eurus, Safe Notos, Safe Zephyrus and 316 299 268 238 Safe Concordia contracted 218  Safe Concordia firm contract extended to 9 November 2024 with 2x30-day options to Q1'23 Q2'23 Q3'23 Q4'23 Q1'

  13. Slide 13: Financials

    Financials 13

  14. Slide 14: Operating revenues

    Operating revenues  Charter income of USD 33 million and USD Operating revenues and EBITDA (USD million) 1 million in reimbursable income from charterer in Q1, increase from last quarter due to higher utilisation 45  EBITDA of USD 7.2 million reflecting 35 1 increased utilisation and lower fuel co

  15. Slide 15: Income statement

    Income statement (Unaudited figures in USD million) Q1 24 Q1 23 12M 23  Operating revenue and expense increase Operating revenues 34,0 14,3 97,7 due to four operating vessel in quarter Operating expenses (26,8) (20,7) (108,2) compared to two in same quarter last year Operating results before deprec

  16. Slide 16: Balance sheet

    Balance sheet (Unaudited figures in USD million) Vessels Q1 24 377,7 Q1 23 384,3 12M 23 383,7 New builds 0,0 0,0 0,0 Other non-current assets 1,9 1,3 1,8  Total assets of USD 478 million Total non-current assets 379,6 385,6 385,5  Cash position of USD 63.4 million Accounts and other receivables 26

  17. Slide 17: Operating cash flow

    Operating cash flow Cash flow in the quarter (USD million)  Operating cash flow of USD (1.4) million in Q1 2024 7  EBITDA USD 7.2 million mainly driven by 75 (7) good utilisation and reduced bunker cost for (1) (2) 63 vessels operating in Brazil (7) (2)  Capex spend of USD 1.7 million in Q1  Wor

  18. Slide 18: Summary and outlook

    Summary and outlook 18

  19. Slide 19: Summary

    Summary  Good operating and safety performance on all vessels  Improving Brazil market with further long and short-term contracts expected  North Sea operators planning future campaigns with ongoing bidding for 2025  Controlling a significant share of open high-end accommodation capacity in the

  20. Slide 20: Appendix

    Appendix 20

  21. Slide 21: Interim condensed consolidated statement of cash flows

    Interim condensed consolidated statement of cash flows (Unaudited figures in USD million) Q1 24 Q1 23 12M 23 Loss before taxes (7,6) (21,2) (73,2) Gain on sale of non-current assets 0,0 0,0 (1,7) Depreciation 7,6 7,5 31,1 Financial income (0,4) (0,5) (2,1) Financial costs 7,9 7,2 30,9 Share-based pa

  22. Slide 22: Interim condensed consolidated statement of comprehensive income

    Interim condensed consolidated statement of comprehensive income (Unaudited figures in USD million) Q1 24 Q1 23 12M 23 Net loss for the period (8,6) (21,7) (67,8) Foreign currency translation (0,2) 0,6 1,3 Pension remeasurement 0,0 0,0 (0,1) Other comprehensive income (0,2) 0,6 1,2 Total comprehensi

  23. Slide 23: Interim condensed consolidated statement of changes in equity

    Interim condensed consolidated statement of changes in equity (Unaudited figures in USD million) Q1 24 Q1 23 12M 23 Equity at beginning of period 33,8 37,3 37,3 Revised equity at beginning of period 33,8 37,3 37,3 Share based payment 0,3 0,3 0,4 New share issue 0,0 0,0 62,7 Comprehensive income for

  24. Slide 24: Vessel update - Brazil

    Vessel update - Brazil Safe Eurus Safe Notos Safe Zephyrus DP3 – Worldwide1 DP3 – Worldwide1 DP3 - Worldwide operations  Contracted to Petrobras until Q1 2027  Contracted to Petrobras until Q3 2026  Contracted to Petrobras until February 2025  100% utilisation in 2023 excluding SPS  100% utilis

  25. Slide 25: 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  Actively marketed, currently in  Actively marketed, currently in the  Firm contract extended to 10  Tender ass

  26. Slide 26: SPS/maintenance capex

    SPS/maintenance capex  Maintenance capex of ~USD 1-3 million per vessel per year. Higher SPS Schedule in Brazil than North Sea and increasing over time  5-year SPS cost of USD 9 to 11 million per vessel, including life 2025 2026 2027 2028 extension / repair work and any contract modifications / hu

  27. 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

  28. Slide 28: Analytical information

    Analytical information P&L information Indicative opex/day by region Item 2024 Comment Region 2024 Opex Estimated Estimated (USDm) (USDk/day) SG&A1 ~18-20 SG&A may increase depending on activity UK (DP-Boreas/Zephyrus) 35-45k Depreciation ~32-33 Straight line depreciation UK (Moored – Caledonia) 25-

  29. Slide 29: Outstanding debt

    Outstanding debt Two tranches Main tranches 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 year 6 / mid

  30. Slide 30: 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

  31. Slide 31: 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

Prosafe — Q1 2024 Earnings Presentation on 6ix