Operating profit for the first quarter came to USD 19 million and net loss amounted to USD 0.7 million. The utilisation of the fleet was 74.4 per cent in the first quarter. An interim dividend of NOK 0.87 per share was resolved. The company has recently had a strong contract inflow and order backlog is at all-time-high.
Financials
(Figures in brackets refer to the corresponding period of 2012)
Operating profit for the first quarter amounted to USD 19 million (USD 60.6 million). Utilisation of the fleet was 74 per cent (83 per cent).
Safe Concordia, Safe Lancia, Jasminia, Safe Hibernia, Safe Britannia and Safe Regency have been on contract throughout the first quarter.
Safe Bristolia was on bareboat day rate throughout the quarter, including the period in transit from Mexico to the North Sea. Expenses of approximately USD 2.5 million relating to preparation for the next contract for the vessel have been incurred in the first quarter.
Safe Concordia is operating on a long-term contract in Brazil. In the first quarter of 2013 the average effective day rate was approximately USD 141,000.
Safe Caledonia commenced the contract with BP at Andrew in the UK on 2 March.
Safe Scandinavia was in operation for BP at Valhall in Norway until 1 March.
After completing the work for Woodside in Australia at year-end 2012, Safe Astoria was demobilised at a day rate of USD 120,000 for the first 20 days in January. Operating expenses for the vessel amounted to USD 2.6 million in the first quarter.
Regalia was off-hire and at the yard undertaking planned maintenance work during the first quarter. Two thrusters were overhauled and the forward crane was replaced during the yard stay. As a consequence, the operating costs were approximately USD 6 million higher than in normal operation in the first quarter.
Net financial expenses for the first quarter were USD 18.6 million (USD 12.5 million). The increase is mainly related to revaluation of forward exchange contracts.
Net loss amounted to USD 0.7 million (net profit of USD 47.5 million), and earnings per share were USD 0.00 (USD 0.21).
Total assets at 31 March amounted to USD 1 459 million (USD 1 378 million), while the book equity ratio rose to 42 per cent (35.1 per cent) mainly due to the share issue of 13 million shares completed in March. Net interest-bearing debt stood at USD 608.1 million (USD 660.1 million).
Dividend
The Board of Directors resolved on 14 May 2013 to declare an interim dividend equivalent to USD 0.15 per share to shareholders of record as of 27 May 2013. The shares will trade ex-dividend on 23 May 2013. The dividend will be paid in the form of NOK 0.87 per share on 7 June 2013.
Change in share capital
On 14 March Prosafe successfully completed a private placement of 13 million new shares. The proceeds of approximately USD 130 million will be used to fund value enhancing growth investments.
On 14 May the annual general meeting approved the cancellation of Prosafe's own shares of 6,963,731. After the cancellation, the number of ordinary shares in the company is 235,973,059.
Outlook
Five of Prosafe's vessels are on bareboat charters in Mexico for end-user Pemex. The five vessels have contracts as follows:
Safe Regency until early August 2013, Safe Lancia until mid-September 2013, Jasminia until end of October 2013, Safe Hibernia until December 2013 and Safe Britannia until end of 2014.
Safe Bristolia commenced a contract for Total in UK in early May.
Regalia commenced a contract with Shell at Draugen in Norway on 30 April.
Safe Scandinavia commenced a contract with ConocoPhillips at Jasmine in the UK in early April.
Safe Caledonia is currently operating for BP at Andrew in the UK.
Safe Concordia is operating on a three-year contract for Petrobras in Brazil, which commenced in the second quarter of 2011.
Safe Astoria is currently off-hire. The vessel is located in Batam, Indonesia.
2013 has so far showed a strong order inflow, with substantial contracts being awarded both in the North Sea and in Mexico. There are still tenders in the pipeline and there should be potential for further contract awards in the coming months.
The positive development is driven by a combination of a strong focus on increased oil recovery from existing fields and a growing number of new developments, particularly in Norway.
Prosafe is the world's leading owner and operator of semi-submersible accommodation/service rigs. Operating profit reached USD 222.4 million in 2012 and net profit was USD 177.5 million. The company operates globally, employs 550 people and is headquartered in Larnaca, Cyprus. Prosafe is listed on the Oslo Stock Exchange with ticker code PRS. For more information, please refer to www.prosafe.com
Attachments: Q1 2013 report, Q1 2013 presentation
Larnaca, 14 May 2013
The Board of Directors of Prosafe SE
Prosafe SE
For further information, please contact:
Karl Ronny Klungtvedt, Chief Executive Officer
Prosafe Management AS
Phone: +47 51 64 25 81
Sven Børre Larsen, Chief Financial Officer
Prosafe Management AS
Phone: +47 909 43 673
Cecilie Helland Ouff, Finance and IR Manager
Prosafe AS
Phone: +47 51 64 25 20 / +47 991 09 467
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
