Prosafe SE: Third quarter 2019 report – Good quarter, but prolonged market challenges

Prosafe reported EBITDA for the third quarter of USD 26.3 million (USD 31.3 million). Cashflow from operations was USD 39.1 million (USD 26.6 million). 

Due to a prolonged downturn and weaker outlook in the North Sea in particular, an impairment of USD 341 million has been made to the book value of vessels, resulting in marginalized book equity. Prosafe has adequate liquidity of USD 216 million.

Recent highlights    

• Fleet utilisation of 48.2 per cent (48.1 per cent).
• Firm order book of USD 170 million per Q3 2019 (USD 232 million).
• Reported EBITDA was USD 26.3 million (USD 31.3 million) in the quarter. Underlying EBITDA in the quarter adjusted for one-off effects was USD 27.8 million.
• Cash flow from operations at USD 39.1 million (USD 26.6 million).
• Total liquidity of USD 216 million per Q3 2019. The company has adequate liquidity.
• Given a prolonged downturn and weaker outlook in the North Sea in particular, an impairment of book value of vessels of USD 341 million has been made to the third quarter accounts.
• As a consequence of the impairment, the book equity amounts to USD 14 million at the end of the quarter.
• The company will initiate a dialogue with its lenders with a view to ensure sufficient flexibility for the longer term.
• On 28^th October 2019 the Norwegian Competition Authorities rejected the proposed merger between Prosafe and Floatel International. Prosafe intends to appeal the decision and will continue its efforts to get clearance in both Norway and the UK.   

Jesper K. Andresen, Prosafe’s CEO says, “The company is in a transforming period with prolonged market challenges. Against this, we continue our merger efforts and focus on protecting values and creating a more robust business.”

A complete version of the Q3 2019 earnings release and the Q3 2019 presentation can be downloaded from www.prosafe.com and www.newsweb.no 

Prosafe is a leading owner and operator of semi-submersible accommodation vessels. The company is listed on the Oslo Stock Exchange with ticker code PRS. For more information, please refer to https://www.prosafe.com  

5 November 2019
Prosafe SE

For further information, please contact:

Jesper K. Andresen, CEO
Phone: +47 907 65 155