Prosafe Se · OSL:PRS

Prosafe — Q4 2021 Earnings Presentation

28 slides from Prosafe's earnings presentation, Feb 11, 2022

  1. Slide 1: Q4 2021 results and business update

    11 February 2022 Q4 2021 results and business 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  Introduction: Fresh start  Highlights Q4 2021  Financial results Q4 2021  Commercial update  Status and strategy 3

  4. Slide 4: Restructuring complete YE 2021: Revitalized and well positioned

    Restructuring complete YE 2021: Revitalized and well positioned A leading owner of semi accommodation units globally  Owner and operator of 7 vessels + 2 newbuilds at yard. Modern fleet Revitalized with financing through 2025  All time low net debt paving the way for refinancing by end of 2025. Am

  5. Slide 5: Agenda

    Agenda  Introduction: Fresh start  Highlights Q4 2021  Financial results Q4 2021  Commercial update  Status and strategy 5

  6. Slide 6: Highlights – Q4 2021

    Highlights – Q4 2021  Financial restructuring completed in December 2021. Prosafe is refinanced and revitalized • HitecVision remains the largest shareholder with 28.2%  Operating status and financial results • Utilisation of 59.3 % in Q4 (25%) • Utilization of 54.5% in 2021 (20.4% in 2020). Highe

  7. Slide 7: Agenda

    Agenda  Introduction: Fresh start  Highlights Q4 2021  Financial results Q4 2021  Commercial update  Status and strategy 7

  8. Slide 8: Income statement

    Income statement Q4  Fleet utilisation of 59.3% (Q4 2020: 25%) (Unaudited figures in USD million) 2021 2020  Higher operating revenues and expenses Operating revenues 29 16 mainly due to higher activity level and higher Operating expenses (25) (15) utilisation for the quarter Operating results bef

  9. Slide 9: Balance sheet

    Balance sheet (Unaudited figures in USD million) 31.12.21 31.12.20 Vessels 397 412 New builds 0 1  Total assets of USD 493 million Other non-current assets 2 2 Total non-current assets 399 416  Liquidity reserve per Q4 2021 of USD 74 Cash and deposits 74 160 Other current assets 20 12 million afte

  10. Slide 10: Agenda

    Agenda  Introduction: Fresh start  Highlights Q4 2021  Financial results Q4 2021  Commercial update  Status and strategy 10

  11. Slide 11: All vessels working in 2022

    All vessels working in 2022 - Except the TSV Safe Scandinavia Contract backlog Contracting update  Safe Boreas: In the yard preparing for a 90-day contract with an option of up to 60 days and start-up in Q2 2022 on the NCS  Safe Caledonia: Currently at stand-by in-field waiting to commence a 270-d

  12. Slide 12: Order backlog per Q4 2021 (USD million)

    Order backlog per Q4 2021 (USD million) 12

  13. Slide 13: Agenda

    Agenda  Introduction: Fresh start  Highlights Q4 2021  Financial results Q4 2021  Commercial update  Status and strategy 13

  14. Slide 14: Driving down costs

    Driving down costs SG&A* costs down over 60% since 2015 Daily opex down in all regions since 2014 45 Additional projects ongoing: 41 80 • Fuel savings 40 40 40 40 • Crew optimization 70 35 30 60 30 Opex / day ($k/d) 50 25 mUSD 22 21 19 40 20 15 30 15 13 10 20 5 10 0 0 2012 2013 2014 2015 2016 2017 2

  15. Slide 15: Significant improvements in key metrices since 2015/2016

    Significant improvements in key metrices since 2015/2016 Pre downturn Post 2021 Rounded numbers Change (2015/ 2016)* restructuring Net Debt (mUSD) ~ 1200 354 -70 % Interest costs (mUSD) ~ 90 10 -90 % Onshore staff (# headcount) ~ 150 58 -60 % SG&A cost (mUSD) ~ 40 13 -60 % # of vessels ~ 14 7 -50 %

  16. Slide 16: All time low net debt and strong earnings improvement

    All time low net debt and strong earnings improvement - Significantly improved earnings outlook for 2022 Financial facts Historical development* Final restructuring completed 2021 Currency: mUSD Average 2010-15 2016 2018 2021 • All time low net debt of USD 354 million Revenues 492 474 331 139 EBITDA

  17. Slide 17: Order backlog improving and anticipated to further improve

    Order backlog improving and anticipated to further improve - Ongoing discussions with Petrobras on new contract for Notos Order backlog (USD million)* Ongoing commercial processes 350  Order backlog increasing and potentially set to grow significantly pending Brazil 300  Safe Notos: Prosafe frontr

  18. Slide 18: Well positioned in the long-term MMO market

    Well positioned in the long-term MMO market Key demand drivers: Key demand drivers Typical Typical project (Example) (Example) BP ETAP: Seagull tie-in New fields Existing fields in production  Hook-up & commissioning  Maintenance & modification  Lifetime extensions  Tie-ins of satellite fields t

  19. Slide 19: Oil& gas will play a key role in the energy transition

    Oil& gas will play a key role in the energy transition Outlook Global energy supply according to IEA (EJ) The process of adapting to the energy Stated Policy Scenario Announced Pledges Sustainable transition will be complex and time Scenario Development Scenario 744 consuming. 671 674 651 Oil & gas

  20. Slide 20: Markets tightening in Brazil and the North Sea

    Markets tightening in Brazil and the North Sea North Sea: # vessels working* Brazil: # vessels working* 9 7 6 6 6 6 6 6 6 6 5 5 5 5 5 2 2016 2017 2018 2019 2020 2021 2022F Competitive 2016 2017 2018 2019 2020 2021 2022F Competitive supply Supply  North Sea market tightening as all five competitive

  21. Slide 21: North Sea market: High 2022 activity. Positive indicators

    North Sea market: High 2022 activity. Positive indicators North Sea # Fields in production (source: Spinergie)  The NCS will continue to be attractive driven by cost competitiveness, 400 low emissions, and long-term oriented regulators 350  Norwegian activity is increasing after the introduction o

  22. Slide 22: Brazil: Increasing activity and focus on high end vessels

    Brazil: Increasing activity and focus on high end vessels Brazil Brazil FPSO Projects 2022 – 2025 (Source: Petrobras)  20 new FPSOs announced & planned to be installed over the next years  Current FPSO fleet: (Let me revert here…need to ensure  Some of existing fleet to be phased out but large po

  23. Slide 23: Our strategic priorities

    Our strategic priorities A• Will drive consolidation of the offshore accommodation industry B • Will continue to strive for best performance on safety and costs C• Will continue to strive for commercial outperformance D • Will actively address GHG emissions on our vessels 23

  24. Slide 24: Restructuring complete YE 2021: Revitalized and well positioned

    Restructuring complete YE 2021: Revitalized and well positioned A leading owner of semi accommodation units globally  Owner and operator of 7 vessels + 2 newbuilds at yard. Modern fleet Revitalized with financing through 2025  All time low net debt paving the way for refinancing by end of 2025. Am

  25. Slide 25: Appendix

    Appendix ey Prosafe

  26. Slide 26: Development of operating results

    Development of operating results 26

  27. Slide 27: Liquidity reserve & Net interest-bearing debt

    Liquidity reserve & Net interest-bearing debt • Over USD 1 billion improvement on net interest – bearing debt 27

  28. Slide 28: Operating revenue

    Operating revenue (USD million) Q4 21 Q4 20 Q3 21 2021 2020 Charter income 24.0 13.3 39.4 121.7 53.0 Other income 5.4 2.2 6.4 19.4 3.7 Total 29.4 15.5 45.8 141.1 56.7 28

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