Prosafe reports second quarter 2017 results
Prosafe has announced second quarter 2017 results.
The fleet utilisation rate in the second quarter of 2017 was 38.5 per cent (41 per cent).
The Safe Scandinavia tender support vessel (TSV) was fully contracted in the quarter with Statoil for a firm contract period until the end of June 2018.
Safe Notos commenced a three-year and 222 day contract for Petrobras on 7 December 2016 and was on contract throughout the second quarter. From 1 July 2017 Safe Notos was off-hire to allow preventive maintenance and repair of the gangway. Safe Notos recommenced operations with Petrobras in early August.
Safe Concordia was fully contracted in the second quarter for Petrobras at a market adjusted dayrate. The vessel completed contracted operations with Petrobras late July and will transit to Curacao for lay-up and is available for future work.
Safe Boreas continued the Repsol Sinopec contract in the UK at market adjusted rates until 24 April 2017. Following preparation and mobilisation, the vessel commenced a 13 month firm period with Statoil at the Mariner installation in the UK in early August.
Safe Caledonia commenced a contract with Total for firm period of 134 days plus a 30 day option in the UK mid May 2017.
Safe Zephyrus, Regalia, Safe Bristolia and Safe Astoria were idle in the quarter. Safe Zephyrus, Regalia and Safe Bristolia are laid up in Norway, while Safe Astoria is laid up in Indonesia.
During June 2017, Safe Regency was sold for recycling for USD 1.25 million. Prosafe has now scrapped five vessels as part of its strategy to high grade the fleet and preserve cash flow.
Safe Eurus is in a preserved, strategic stacking mode with COSCO (Qidong) Offshore Co. Ltd. (COSCO) in China.
The standstill agreement between Prosafe and COSCO relating to Safe Nova and Safe Vega has been extended until December 2017. Prosafe remains in negotiations with COSCO and related parties for a workable commercial solution for these vessels. The aim is to include Safe Eurus in a commercial solution along with the Safe Nova and Safe Vega to improve flexibility and terms also for that vessel. If an agreement is not reached, Prosafe has the right to cancel the Safe Nova and Safe Vega newbuild contracts due to delay and claim a refund of the gross deposit of approx. USD 60 million secured by Bank of China, and retain the current agreement and financing for the Safe Eurus.
Financials
Revenues for the second quarter of 2017 were USD 61.7 million (USD 115.4 million). This decline reflects lower utilisation and day rates for Safe Boreas, Safe Caledonia, Regalia and Safe Bristolia compared to the same period last year.
Operating expenses declined to USD 37.3 million (USD 53.8 million). This reduction is due to cost savings and lower activity. EBITDA was USD 24.4 million in the quarter (USD 61.6 million).
Depreciation increased to USD 33.8 million (USD 29.1 million) mainly due to the new build vessel, Safe Notos. Operating loss was USD 9.4 million (operating profit of USD 32.5 million).
Net financial expenses for the second quarter were USD 22.5 million (USD 26.4 million).
Net loss amounted to USD 33 million (net profit of USD 5.2 million).
Total assets at 30 June amounted to USD 2,591.3 million (USD 2,599.7 million). The book equity ratio increased to 41.9 per cent (26.1 per cent) due to the financial restructuring completed during last year and remained steady in the quarter. Net interest-bearing debt stood at USD 1,134.8 million (USD 1,648.5 million).
Prosafe is a leading owner and operator of semi-submersible accommodation vessels. The company is headquartered in Larnaca, Cyprus and listed on the Oslo Stock Exchange with ticker code PRS.