Prosafe SE's Strong Fourth Quarter Performance in 2024
Prosafe SE Reports Thriving Fourth Quarter Results
As the year 2024 comes to a close, Prosafe SE showcases its fourth-quarter results with impressive figures, illustrating a remarkable turnaround compared to the previous year. The company achieved an EBITDA of USD 4.9 million, a significant improvement from a negative USD 2.7 million during the same period last year. This performance is anchored by the operation of four active vessels throughout the quarter.
Operational Highlights and Safety Standards
Prosafe SE has demonstrated stellar operational capabilities and strict adherence to safety standards across its fleet. The vessel utilisation rate saw an increase to 57%, up from 50% the prior year, showcasing the organisation's successful operational strategies. Impressively, there was a 100% utilisation rate for its operating fleet located in Brazil and the US Gulf of Mexico. This achievement reflects Prosafe's strong market position and operational excellence.
Commercial Performance and Backlog Growth
The company's commercial performance in 2024 has also been noteworthy, with a 44% increase in its backlog compared to the previous year. The backlog now sits at USD 370 million, rising from USD 238 million. A significant contributor to this growth is the extension of the contract for Safe Zephyrus to Q3 2027, adding USD 109 million to the backlog. Additionally, multiple contracts for Safe Boreas, Safe Caledonia, and Safe Concordia extensions have bolstered Prosafe's market presence.
Financial Overview for Q4
The financial metrics from the fourth quarter showcase the company's healthy growth trajectory. Revenues reached USD 37.0 million compared to USD 29.6 million the previous year, marking a strong upward trend. The highlighted EBITDA transition to positive at USD 4.9 million indicates robust strategic management. While cash flow from operations was nil, attributed to reactivation costs associated with Safe Boreas and Safe Caledonia, the overall financial outlook remains optimistic.
Liquidity and Future Financing
Prosafe reported a liquidity position of USD 46.8 million, though a decline compared to USD 63.5 million in Q3 2024. Nevertheless, this sufficient liquidity is projected to sustain operations until mid-2025. Looking ahead, the company anticipates completing refinancing by H1 2025. This plan might include an equity component, incorporating options such as debt-for-equity conversions and/or additional equity injections, reflecting a proactive approach to capital restructuring.
Market Outlook and Strategic Position
Prosafe's market dynamics appear promising, particularly within the Brazilian sector where demand is escalating due to new tenders for up to six units. Simultaneously, North Sea operators are also strategising for future operational campaigns. The growing backlog alongside a positive market outlook situates Prosafe on a robust platform to enhance liquidity and achieve a sustainable capital structure.
Leadership Insights
CEO Terje Askvig expressed optimism regarding the direction of the global accommodation market, underscoring the increasing demand in Brazil. He articulated that the emerging long-term contracts from Petrobras may create additional capacity needs, benefitting Prosafe as a market leader. With improved market fundamentals, a growing backlog, and heightened operational efficacy, Askvig believes these elements support expectations for future earnings growth.
Company Presentation and Further Information
Prosafe will conduct a presentation detailing these results, featuring insights from Terje Askvig and CFO Reese McNeel, on February 3, 2025. This public presentation will take place at Pareto Securities and will also be live-streamed, allowing for broad accessibility. Participants can engage through a Q&A tool during the presentation, ensuring interactive communication.
For further inquiries, Prosafe provides contact information: CEO Terje Askvig can be reached at +47 952 03 886, while CFO Reese McNeel is available at +47 415 08 186. This interaction serves to enhance transparency and stakeholder engagement.
Frequently Asked Questions
What were the key financial figures for Prosafe SE in Q4 2024?
Prosafe SE reported revenues of USD 37.0 million and an EBITDA of USD 4.9 million in the fourth quarter of 2024.
How many vessels did Prosafe operate during Q4 2024?
During the fourth quarter of 2024, Prosafe operated four active vessels.
What is the company's liquidity position heading into 2025?
Prosafe's liquidity position was reported at USD 46.8 million, expected to sustain operations until mid-2025.
What does the backlog growth signify for Prosafe SE?
The backlog growth of 44% indicates a strong demand for Prosafe's services and a positive outlook for future operations.
When will the next presentation of Prosafe SE’s results occur?
Prosafe SE will present its results on February 3, 2025, at Pareto Securities, which will also be live-streamed for public access.
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