Prosafe SE: Operational update Q1 2017

The fleet utilisation rate in the first quarter of 2017 was 40 per cent.

Safe Boreas continued the contract with Repsol Sinopec (formerly Talisman Sinopec) in UK and was in full operation throughout the quarter. The Repsol Sinopec contract at Montrose has been extended until 24 April 2017 at market adjusted rates.

Safe Zephyrus completed the contract with Aker BP in Norway at the end of January and is currently laid-up in the UK.

Safe Notos commenced its three-year and 222-day contract for Petrobras on 7 December 2016 and was on contract throughout the quarter. Safe Concordia was fully contracted in the quarter for Petrobras and continues on short-term extensions at a market adjusted day rate.

The Safe Scandinavia Tender Support Vessel (TSV) was fully contracted in the quarter with Statoil. The TSV contract has a firm period until July 2018.

Safe Caledonia is undergoing a five-year SPS before commencing a 134-day plus 30-day option contract with Total in UK in mid-May 2017.

Regalia, Safe Bristolia, Safe Astoria and Safe Regency were idle in the quarter. Regalia is laid up in the UK, Safe Bristolia is laid up in Norway while Safe Astoria is laid up in Indonesia. Safe Regency is laid up in Curaçao and the company has taken the decision to sell the vessel for scrap in the near term. Safe Lancia was sold for scrap in the US in March 2017. Following this, Prosafe has scrapped four vessels as part of its strategy to high grade the fleet, protect cash-flow and rebalance the market.  

The Safe Eurus is in a preserved, strategic stacking mode with COSCO (Qidong) Offshore Co., Ltd. (COSCO) in China. Prosafe remain in negotiations with COSCO and related parties for a workable commercial solution for Safe Nova and Safe Vega. If no agreement is reached, Prosafe has the right to claim cancellation of the newbuilding contracts due to delay and claim repayment of the instalment paid including interest of approx. USD 60 million secured by a refund guarantee from Bank of China.

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. For more information, please refer to www.prosafe.com.