Prosafe SE : Fourth quarter 2015 and full year results
Operating profit for 2015 amounted to USD 167 million and net profit was USD
85.6 million. Utilisation of the fleet was 70 per cent. Prosafe is taking
proactive measures by renewing and updating its fleet, strengthening the balance
sheet, increasing its financial flexibility and securing liquidity buffers.
Financials
(Figures in brackets refer to the corresponding period of 2014)
Full year 2015
Operating profit for 2015 amounted to USD 167 million (USD 248.3 million) and
utilisation of the fleet was 70 per cent (87 per cent).
Net financial expenses for 2015 amounted to USD 70.9 million (USD 57 million).
The increase results mainly from fair value adjustments of currency forward
contracts and higher interest expenses. In accordance with IFRS, interest costs
totalling USD 12.8 million (USD 7.9 million) have been allocated to new build
and construction projects and consequently capitalised as part of the vessel
costs.
Net profit for 2015 equalled USD 85.6 million (USD 178.8 million) and diluted
earnings per share were USD 0.36 (USD 0.76).
Fourth quarter 2015
Utilisation of the fleet was 62 per cent (92 per cent). Operating profit for the
fourth quarter amounted to USD 17.5 million (USD 77.4 million).
Jasminia remained off-hire in the quarter. An impairment of USD 9.4 million
relating to Jasminia has been charged to the accounts in the fourth quarter. The
net book value of the vessel is zero as at 31 December 2015.
A fee of USD 4 million relating to the cancelled towage of Safe Zephyrus was
expensed in Q4 2015. Safe Zephyrus was delivered at the end of January 2016, and
the final instalment was reduced by USD 30 million. This represents a seller's
credit from the yard, to be repaid in a single payment on or before 15 June
2017. Safe Zephyrus is scheduled to commence a contract in Norway early Q3 2016.
Further in Q4 2015, non recurring items amounting to USD 3.4 million were
charged and USD 2.25 million provided for relating to settlement of certain
contractual matters and an operational incident resulting in the loss of an
anchor wire.
Safe Boreas was on contract in Norway until mid-December, and Regalia was on
contract in UK until late November.
Safe Bristolia was off contract throughout the quarter, and is now in a Gdansk
yard for its special periodic survey (SPS).
Safe Astoria is located in Batam, Indonesia, where it has undergone minor works
in the fourth quarter.
Safe Concordia, Safe Caledonia, Safe Regency, Safe Lancia, Safe Hibernia and
Safe Britannia were fully contracted throughout the quarter.
The Safe Hibernia contract has been extended until the end of Q1 2016. Safe
Britannia ended its contract at the end of December 2015, but the vessel remains
in operational readiness mode in anticipation of new assignments.
Mechanical completion and commissioning of Scandinavia TSV is finalised. As
stated in the recent operational update, during the acceptance testing certain
specifications showed a need for some adjustments, which are expected to be
completed in the near future. Once the testing is complete, the vessel will
start mobilising to Oseberg East.
Net financial costs amounted to USD 22.2 million (USD 25.3 million). Net loss
equalled USD 6.8 million (net profit of USD 51 million), corresponding to
diluted earnings per share of USD 0.03 negative (USD 0.22 positive).
Total assets at 31 December amounted to USD 2 323 million (USD 1 817 million).
Net interest-bearing debt equalled USD 1 189.9 million (USD 707.7 million), and
the book equity ratio was 36.6 per cent (41.2 per cent).
Share issue
On 3 December 2015, the company raised NOK 590 million in gross proceeds through
a private placement of 23,597,300 new shares, each with a par value of EUR 0.25
at a subscription price of NOK 25 per share, representing a premium of 4.6% on
the closing price of the day.
The proceeds from the private placement have strengthened the company's balance
sheet and liquidity position.
Amended credit facilities
The company's USD 1,300 million and USD 288 million credit facilities have been
amended. The amendments provide increased operational and financial flexibility.
Fleet renewal
The company is taking delivery of the Safe Notos in February 2016 as part of its
fleet renewal strategy. In connection with the delivery, Prosafe will draw USD
144 million of its committed credit facility. The final delivery instalment will
be reduced by USD 29 million, by way of a seller's credit from Cosco (Qidong)
Offshore Co., Ltd., repayable in a single payment by 31 December 2016, which
results in increased liquidity for the company.
Outlook
The oil and gas services market remains challenging in the short and medium term
with continued volatile oil price and reductions in E&P capital expenditure.
Accordingly, Prosafe is taking proactive measures by renewing and updating its
fleet, strengthening the balance sheet, increasing its financial flexibility and
securing liquidity buffers. In addition, Prosafe continues to focus on cost
optimisation and reduction.
The longer term outlook for offshore oil and gas remains positive with activity
expected to improve in the medium to long term.
Prosafe continues to actively pursue suitable opportunities that, if successful,
will add to the company's order book.
Prosafe is the world's leading owner and operator of semi-submersible
accommodation vessels. Operating profit reached USD 167 million in 2015 and net
profit was USD 85.6 million. The company operates globally, employs 850 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: Q4 2015 report, Q4 2015 presentation
Larnaca, 4 February 2016
Georgina Georgiou, General Manager
Prosafe SE
For further information, please contact:
Karl Ronny Klungtvedt, Chief Executive Officer
Prosafe Management AS
Phone: + 47 51 64 25 00
Stig Harry Christiansen, Chief Financial Officer
Prosafe Management AS
Phone: +47 478 07 813
Cecilie Helland Ouff, Senior Manager Finance and Investor Relations
Prosafe AS
Phone: +47 991 09 467
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
[HUG#1983639]