Prosafe SE's Q1 2025 Insights: Financial Performance and Future Plans
Prosafe SE Reports First-Quarter Results
Prosafe SE released its financial statement for the first quarter of the year, reporting an EBITDA of USD 4.6 million, a decrease from USD 7.2 million from the same period last year. During this quarter, the company successfully operated four active vessels, illustrating its commitment to maintaining a robust service in the offshore sector.
Operational Performance and Safety Measures
The company has shown commendable operational efficiency and has emphasized safety. Prosafe achieved a notable milestone with the extension of its Safe Zephyrus contract with Petrobras, now sustained until the third quarter of 2027.
Recent Developments in Operations
Some key operational highlights include:
- Successful sale of the Safe Concordia and Safe Scandinavia.
- Reactivation of Safe Caledonia for a planned contract in the UK, starting June 1.
- Safe Boreas currently in transit to Singapore as it prepares for a contract in Australia.
- Safe Notos has emerged victorious in a significant tender in Brazil, securing a contract for the next four years.
Q1 2025 Financial Overview
In evaluating the financial performance for Q1 2025, here are the important figures:
- Revenue stood at USD 33 million, slightly down from USD 34 million in the previous year.
- EBITDA was recorded at USD 4.6 million, down from USD 7.2 million.
- Cash flow from operations reached USD 28.4 million, contrasting with negative cash flow of USD 1.4 million last year, aided by prepayments for contracts involving Safe Boreas and Safe Caledonia.
- Capital expenditure rose significantly to USD 21.2 million compared to USD 1.7 million, reflecting investment in reactivation projects.
- The liquidity position improved to USD 54 million, compared to USD 46.8 million at the end of the previous year.
Recapitalisation Strategy
In a strategic move to strengthen its financial foundation, Prosafe is undergoing a recapitalisation process:
- The company has reached an agreement to equitise USD 193 million of its debt, giving stakeholders a collective 90% ownership of shares.
- This move is backed by lenders managing USD 250 million and USD 93 million loan facilities and has garnered shareholder approval during a recent extraordinary general meeting.
- Current shareholders will retain a 5% stake, with an option for a further 5% at EUR 0.01 per share through penny warrants.
- An anticipated post-recapitalisation net debt of approximately USD 220 million should provide a stable capital structure and necessary liquidity.
- Completion of this process is expected by the third quarter of 2025.
Market Trends and Future Outlook
Looking ahead, the outlook for Prosafe appears positive:
- Ongoing Petrobras tenders highlight strong competitive market dynamics in Brazil.
- Operators in the North Sea are actively planning for upcoming campaigns, with a focus extending into 2027.
- An increased backlog and strengthened market fundamentals position Prosafe for potential enhancement in earnings.
Company CEO, Terje Askvig, expressed optimism regarding operational performance, emphasizing high utilization rates across their fleet while ensuring readiness for new contracts in Australia and the UK. Additionally, the recent victory in the Petrobras tender signifies a substantial addition to their backlog, reinforcing Prosafe's role as a prominent provider of floating accommodation vessels.
Company Presentation and Public Engagement
CEO Terje Askvig, along with CFO Reese McNeel, will present financial results publicly at an event hosted by Pareto Securities. Although originally scheduled for May 21st, all interested parties are invited to attend as the presentation will also be live-streamed on Prosafe’s website.
Frequently Asked Questions
What is Prosafe SE known for?
Prosafe SE is a leading owner and operator of semi-submersible accommodation vessels in the offshore sector.
What were the key financial highlights for Q1 2025?
In Q1 2025, Prosafe reported revenues of USD 33 million and an EBITDA of USD 4.6 million.
What are the details of the recent recapitalisation?
The recapitalisation involves equitising USD 193 million in debt, allowing current shareholders to maintain a relevant stake in the company.
How is Prosafe positioning itself in the market?
Prosafe is actively engaging in tenders and securing contracts, indicating a strong market presence particularly in Brazil and the North Sea.
When and where is the upcoming presentation?
The presentation will take place at Pareto Securities in Oslo and will be accessible online to audiences interested in the company’s developments.
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