Prosafe Se · OSL:PRS

Prosafe — Q1 2019 Earnings Presentation

21 slides from Prosafe's earnings presentation, May 9, 2019

  1. Slide 1: Q1 2019 results and market update

    9 May 2019 Q1 2019 results and market update

  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: Agenda

    Agenda  Highlights  Financial results  Contract status  Outlook  Summary 3

  4. Slide 4: Recent highlights – Q1 2019

    Recent highlights – Q1 2019  High utilisation • Utilisation of fully owned vessels in Q1 of 62.5% (33.3%)  Financial results • EBITDA before non-recurring items of USD 25.9 million (USD 24.1 million reported) • Cash flow from operations was USD 14.7 million (USD 51.4 million) and cash balance of U

  5. Slide 5: Agenda

    Agenda  Highlights  Financial results  Contract status  Outlook  Summary 5

  6. Slide 6: Income statement

    Income statement  High utilisation of fully owned vessels of 62.5% (Q1 (Unaudited figures in USD million) Q1 19 Q1 18 2018: 33.3%). Operating revenues 67 83  Lower operating revenues despite higher utilisation Operating expenses (43) (34) due to lower average dayrates – approx. USD 125k Operating

  7. Slide 7: Operating revenue

    Operating revenue (USD million) Q1 19 Q4 18 Q1 18 2018 Charter income 56.8 63.7 76.5 293.2 Other income 10.5 10.4 6.3 37.6 Total 67.3 74.1 82.8 330.8 7

  8. Slide 8: Balance sheet

    Balance sheet (Unaudited figures in USD million) 31.03.19 31.12.18 31.03.18  Total assets of ca. USD 1.7 billion Vessels 1,401 1,423 1,501 New builds 126 3 126 125 10  Reduced cash balance mainly due to further Other non-current assets 10 Total non-current assets 1,530 1,559 1,637 repayment into c

  9. Slide 9: Agenda

    Agenda  Highlights  Financial results  Contract status  Outlook  Summary 9

  10. Slide 10: Fleet status: Contracts, wins and extensions

    Fleet status: Contracts, wins and extensions Contract backlog Contracting update  Safe Boreas three of six one-month options exercised at the Mariner project in the UK sector of the North Sea. Operations presently through September 2019.  Safe Scandinavia extended through to mid-May 2019 at Ula in

  11. Slide 11: Agenda

    Agenda  Highlights  Financial results  Contract status  Outlook  Summary 11

  12. Slide 12: Healthy oil price

    12 10 20 30 40 50 60 70 80 90 0 100 jan 02, 2015 mar 02, 2015 mai 02, 2015 Dollars per barrel jul 02, 2015 Healthy oil price sep 02, 2015 nov 02, 2015 jan 02, 2016 mar 02, 2016 mai 02, 2016 jul 02, 2016 sep 02, 2016 nov 02, 2016 jan 02, 2017 mar 02, 2017 mai 02, 2017 jul 02, 2017 sep 02, 2017 nov 02

  13. Slide 13: Global: Cashflow and sanctioning increase

    Global: Cashflow and sanctioning increase Record high cash flows for E&Ps in 2018 onwards Global offshore greenfield capex by sanctioning year Source: Rystad Energy 13

  14. Slide 14: Status - Order backlog

    Status - Order backlog Firm backlog was USD 159 million per end Q1 2019 14

  15. Slide 15: UKCS: £200 billion investment requirement

    UKCS: £200 billion investment requirement  In 2018, oil and gas accounted for 75 per cent of the UK's primary energy demand and the UK Government forecasts that it will still be required to meet around two-thirds of primary energy needs in 2035  US$5.5 billion of new investments sanctioned in 2018

  16. Slide 16: NCS: Investment rise and exploration success

    NCS: Investment rise and exploration success  Investments are expected to rise to USD 21.5 billion in 2019 from USD 18.5 billion last year, according to a forecast from the Norwegian Oil & Gas Association  Spending is likely to remain little changed at about USD 21.3 billion in 2020  After peak s

  17. Slide 17: Brazil: High ambitions and tender activity ongoing

    Brazil: High ambitions and tender activity ongoing IOC offshore spending increase  Even upon conclusion of the tenders, contracted supply is considered insufficient to meet Petrobras’ near/ medium term demand  Petrobras offshore MMO spending forecast to exceed USD 3.5 billion in 2020 – the first t

  18. Slide 18: Mexico: Activity growth from 2020 anticipated

    Mexico: Activity growth from 2020 anticipated  Average age of offshore facilities in Mexico is over 25 years Offshore facilities by installation year  Over 50% of infrastructure weight was installed prior to 1991 (topside weight)  New President ‘AMLO’ focus on increasing production by 800,000 bpd

  19. Slide 19: Prospects & tendering – 4 year comparison

    Prospects & tendering – 4 year comparison Global opportunities Tendering activity – 4 year profile  16 tenders ongoing for 2019 through 2021  24 North Sea prospects greater than 50% probability of going to tender next 3 years  11 prospects likely going to tender within Americas  Longer term tend

  20. Slide 20: Agenda

    Agenda  Highlights  Financial results  Contract status  Outlook  Summary 20

  21. Slide 21: Summary

    Summary  High activity • Utilisation of fully owned vessels in Q1 of 62.5% (33.3%) • Two contract extensions and one award  Performance on track  Strong liquidity position • Total liquidity reserve of USD 264 million  Outlook unchanged. Improvement anticipated from 2020/2021  Consolidation and

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