Prosafe SE Reports Positive Third Quarter Results for 2024

Prosafe SE Posts Strong Third-Quarter Results for 2024

14 November 2024 – Prosafe SE showcased its resilience in the third quarter of 2024, reporting an EBITDA of USD 5.0 million compared to USD 8.4 million in the prior year. The company maintained four active vessels throughout the quarter, asserting its presence in the competitive accommodation market.

Operational Excellence and High Utilization Rates

During the third quarter 2024, Prosafe experienced strong operational and safety performances across all its vessels. The utilization rate rose to 57%, an improvement from 52% in the same period last year. Notably, vessels such as Safe Concordia, Safe Notos, and Safe Eurus achieved 100% utilization, while Safe Zephyrus posted an impressive 99% utilization.

Substantial Backlog Growth

The company reported a significant commercial boost with its backlog nearly doubling from the previous year, now standing at USD 400 million, compared to USD 268 million last year. Contracts were signed for Safe Boreas and Safe Caledonia, adding USD 137 million to the firm backlog. Furthermore, an extension for Safe Concordia until March 2025 is expected to contribute an additional USD 13.1 million.

Financial Insights from Q3 2024

Prosafe's financial results for the quarter reflected a healthy performance, with revenues reaching USD 34.6 million, up from USD 32.8 million in 2023. While EBITDA dipped to USD 5.0 million, cash flow from operations surged to USD 9.1 million, marking a significant recovery from a negative USD 14.0 million last year, primarily driven by an up-front payment for Safe Caledonia’s contract.

Liquidity and Capital Position

The company’s liquidity position remains robust at USD 63.5 million, although it has decreased from USD 65.9 million at the end of Q2 2024. The increased backlog and positive market outlook is expected to strengthen liquidity and facilitate a sustainable capital structure.

Market Conditions and Future Outlook

Market conditions appear favorable for Prosafe, as the Brazilian market continues to improve with new tenders and both long- and short-term contracts anticipated. There’s increasing activity among North Sea operators as they plan upcoming campaigns with ongoing bidding for requirements extending into 2026 and beyond. The company remains optimistic, forecasting increased utilization and earnings growth in the coming years.

Leadership Insights

CEO Terje Askvig highlights the company’s progress, stating, “Prosafe is successfully building a strong backlog for 2025 and beyond. Our recent commercial achievements validate a growing market for accommodation vessels driven by high demand in Brazil and enhanced activity in the North Sea. This, combined with our operational efficiencies, lays a solid foundation for future earnings growth.”

Upcoming Presentation and Contact Information

On the same day of the results announcement, CEO Terje Askvig and CFO Reese McNeel will present their findings at Pareto Securities in Oslo at 10:00 a.m. CET. The presentation is open to the public and will be available via live streaming at the Prosafe website.

For further inquiries, Terje Askvig, CEO can be reached at +47 952 03 886 and Reese McNeel, CFO at +47 415 08 186. Their insights will be essential as the company navigates its future opportunities and addresses the refinancing process expected to finalize by mid-2025.

Frequently Asked Questions

What were Prosafe SE's key financials in Q3 2024?

In Q3 2024, Prosafe reported revenues of USD 34.6 million and an EBITDA of USD 5.0 million.

How many vessels were active during the third quarter?

Prosafe had four active vessels during the third quarter of 2024.

What is the company's current backlog?

Prosafe's current backlog stands at USD 400 million, significantly up from USD 268 million in the previous year.

What developments were noted in the market outlook?

The market outlook suggests improving conditions with an expected increase in utilization and earnings growth facilitated by new contracts, especially in Brazil and the North Sea.

Who can be contacted for further information about Prosafe SE?

For inquiries, you can contact CEO Terje Askvig at +47 952 03 886 or CFO Reese McNeel at +47 415 08 186.

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