Slide 1: Q3 2024 Results
Q3 2024 (Apr 5th, 2024 @ 13:47): PN: New image Results 14 November 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 Q3 2024
Key events Q3 2024 Operations and HSSE Good operating and safety performance on all vessels Utilisation of 57%, four out of seven vessels operating during the quarter Strong commercial performance ‒ LOIs for Safe Boreas and Safe Caledonia now firm contracts ‒ Safe Concordia options declared wi
Slide 4: Boreas and Caledonia contracted, building 2025-2027 backlog
Boreas and Caledonia contracted, building 2025-2027 backlog 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) Petrobras (Brazil) Safe Eurus Petrobras (Brazil) Safe Notos Petrobras (Brazil) Petrobras (Brazil) Safe Concordia US Gulf of Mexico S
Slide 5: Market
Market 5
Slide 6: Brazil employing ~50% of global fleet
Brazil employing ~50% of global fleet Norway: 3 vessels UK: 2 vessels Safe Caledonia - Ithaca USA: 1 vessel Safe Concordia - Undisclosed Guyana: 1 vessel Australia: 2 vessels Brazil: 11 vessels Safe Boreas – Undisclosed Safe Zephyrus - Petrobras Africa: 2 vessels Safe Notos - Petrobras Safe Eurus -
Slide 7: Market tightening to 2030 and beyond
Market tightening to 2030 and beyond Offshore accommodation demand and supply development (vessel years) New, incremental 2-year tender recently released by Petrobras Forecast with 2026 start-up 28,7 Assuming no new units enter the market 27,3 25,8 26,2 25,7 Additional, multi-year tenders 23,5 2
Slide 8: Strong demand development in Brazil
Strong demand development in Brazil Brazil activity (unit growth) Forecast Oil and gas production expected to double to ~ 5 - 6 Potential +29 million barrels in 2030 On order 87 92 78 20 19 FPSOs on order and 20 additional units may be Existing 15 70 7 66 2 64 64 ordered 61 61 62 63 63 1 60 2 17
Slide 9: Enterprise value to replacement cost
Enterprise value to replacement cost Accommodation vessels compared to other assets1 Low Prosafe asset valuation relative to replacement cost2 100% USD million EV / Replacement Cost 1 600 90% USD 1 – 1.5 bn 80% 1 400 70% 1 200 60% 52% 1 000 49% 50% 44% 800 40% 30% 600 High ~550 EV ~30 - 40% 26% of R
Slide 10: Operations
Operations 10
Slide 11: Stable operations
Stable operations Caledonia Scandinavia Boreas All three Brazil vessels with 99% to 100% utilisation with Petrobras Concordia Safe operations in quarter with no recordable injuries Zephyrus Safe Concordia with 100% utilisation ‒ Contract extended in US Gulf of Mexico until Eurus Notos early Ma
Slide 12: Backlog improved and extending into 2027
Backlog improved and Order backlog (USD million)| 400 extending into 2027 287 19 257 220 323 37 105 35 19 100 7 7 Safe Eurus, Safe Notos, Safe Zephyrus and 268 238 260 213 Safe Concordia on contract and working 179 Backlog of USD 2951) million in firm backlog Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 plus o
Slide 13: Financials
Financials 13
Slide 14: Operating revenues
Operating revenues Operating revenues and EBITDA (USD million) Charter income of USD 34.1 million and other income of USD 0.5 million 45 ‒ In line with previous quarter and driven by stable 35 utilisation 2 1 1 1 34 1 33 33 31 EBITDA of USD 5.0 million. Increased costs 25 29 due to higher activi
Slide 15: Income statement
Income statement (Unaudited figures in USD million) Q3 24 Q3 23 9M 24 9M 23 12M 23 Operating revenues 34.6 32.8 102.8 68.1 97.7 Improved operating revenue with four Operating expenses (29.6) (24.4) (84.0) (75.9) (108.2) operating vessels in full quarter compared Operating results before depreciati
Slide 16: Balance sheet
Balance sheet (Unaudited figures in USD million) Vessels 9M 24 367.3 9M 23 388.9 12M 23 383.7 Other non-current assets 3.0 1.2 1.8 Total non-current assets 370.3 390.1 385.5 Accounts and other receivables 24.6 26.8 24.9 Other current assets 7.0 7.0 7.7 Total assets of USD 465.4 million Cash and de
Slide 17: Operating cash flow
Operating cash flow Cash flow in the quarter (USD million) Operating cash flow of USD 9.1 million 4 (0) (3) 66 64 EBITDA USD 5.0 million 5 (7) (2) Working capital of USD 4.2 million, impacted positively by up-front contract payment for Safe Caledonia Capex spend of USD 2.8 million Interest
Slide 18: Sustainable capital structure to support growth
Sustainable capital Indicative refinancing need in 2025 (USD million) structure to support growth 450 80 Increased backlog and improved outlook create a 400 28 ~ 401 platform to strengthen liquidity and achieve a sustainable capital structure (50) 350 343 Refinancing process is continuing with a
Slide 19: Summary and outlook
Summary and outlook 19
Slide 20: Summary
Summary Market leader with Positioned for long-term significant share of capacity value creation driven by in a tightening market and Brazil demand access to newbuilds at attractive lead time High earnings potential, Focus on achieving favourable replacement sustainable capital value structure prior
Slide 21: Appendix
Appendix 21
Slide 22: Interim condensed consolidated statement of cash flows
Interim condensed consolidated statement of cash flows (Unaudited figures in USD million) Q3 24 Q3 23 9M 24 9M 23 12M 23 Loss before taxes (11.5) (5.7) (28.4) (52.0) (73.2) Deferred revenue recognition (IFRS 15 adjustment) 0.0 0.0 0.0 0.0 0.0 Share of loss of equity of an associate 0.0 0.0 0.0 0.0 0
Slide 23: Interim condensed consolidated statement of comprehensive income
Interim condensed consolidated statement of comprehensive income (Unaudited figures in USD million) Q3 24 Q3 23 9M 24 9M 23 12M 23 Net loss for the period (11.8) (5.7) (30.7) (53.1) (67.8) Foreign currency translation 0.8 (0.7) 0.2 0.7 1.3 Revaluation hedging instruments 0.0 0.0 0.0 0.0 0.0 Pension
Slide 24: Interim condensed consolidated statement of changes in equity
Interim condensed consolidated statement of changes in equity (Unaudited figures in USD million) Q3 24 Q3 23 9M 24 9M 23 12M 23 Equity at beginning of period 14.8 19.3 33.8 37.3 37.3 Revised equity at beginning of period 14.8 19.3 33.8 37.3 37.3 IFRS 15 adjustment to opening balance 0.0 0.0 0.0 0.0
Slide 25: 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, with extension to September 2027 expected 98% utilisation in 2
Slide 26: 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 Contract signed for operations in Contract signed for UK. Start-up June Firm contract extended to early Ten
Slide 27: Analytical information
Analytical information Expenditure information Indicative opex/day by region Item 2024 2025 Comment Region 2024 / 2025 Opex Estimated Estimated Estimated (USDm) (USDm) (USDk/day) SG&A1 ~20 ~20-21 SG&A increase driven by increased activity and inflation UK (DP-Boreas/Zephyrus) 35-45k Depreciation ~32
Slide 28: Outstanding debt
Outstanding debt Three Tranches of Debt 2 Main Tranches COSCO Sellers Credit Debt maturity profile Outstanding debt $343m (two tranches 250m & 93m Notos) $80.0m Pledged vessels Boreas, Zephyrus, Caledonia, Concordia, Eurus Scandinavia, Notos (only 93m tranche) COSCO Interest rate SOFR + Credit Adjus
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 Brazil requirements ‒ Ongoing dialogue with the yard on how to facilitate delivery in expected future Petrobras tenders ‒ Long-term contracts required to justify delivery Existing delivery terms
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 2023. The deferred tax assets are currently not recognized in the financial statements. In Q4 2023, the Norwegian tax auth
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