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Prosafe SE (OSL:PRS) Prosafe delivered its best second quarter ever, with operating revenues of USD 125.9 million (USD 95.9 million in the same period last year) and operating profit before depreciation of USD 75.3 million (USD 50.0 million). Operational performance was strong and utilisation of the rig fleet was 99 per cent. Solid earnings, high quality assets and a positive market outlook give Prosafe a good foundation for further profitable development.
Split of Prosafe completed The annual general meeting adopted on 14 May 2008 to distribute 90.1 per cent of the shares in Prosafe Production Public Limited to the shareholders of Prosafe SE. Distribution of the shares took place on 27 May 2008.
Financials (Figures in brackets refer to the corresponding period of 2007)
In accordance with IFRS, the figures relating to Prosafe Production Public Limited are presented net on a separate line in the income statement of Prosafe SE. Thus, when references are made to prior periods, these figures are exclusive of the discontinued operations.
After the divestment of the floating production division, only one division remains in Prosafe; the Offshore Support Services. Consequently, no segment information is presented in the notes to the accounts.
First half 2008
Operating profit for the first half of 2008 came to USD 105.4 million (USD 62.2 million). Utilisation of the rig fleet was 93 per cent (87 per cent). This improvement reflects mainly the higher utilisation and significantly higher dayrates for MSV Regalia and Safe Bristolia.
Net financial costs amounted to USD 29.5 million (USD 17.8 million). This change reflects a favourable change in value of financial instruments in the same period last year. Interest costs on corporate level have not been allocated to discontinued operations for any of the reported periods.
Tax costs expensed in the first half equalled USD 3.3 million (USD 0.1 million), out of which USD 1.2 million relates to a provision for capital gain tax on the sale of the office building in Norway.
Net profit from continuing operations amounted to USD 72.6 million (USD 44.3 million), corresponding to diluted earnings per share of USD 0.32 (USD 0.19).
Net profit including discontinued operations amounted to USD 110.6 million (USD 62.3 million), which is the equivalent of diluted earnings per share of USD 0.48 (USD 0.27).
Total assets at 30 June amounted to USD 1 362.7 million (USD 2 336.4 million), while the equity ratio declined to 14.7 per cent (47.5 per cent) as a consequence of the distribution of the shares in Prosafe Production Public Limited in the second quarter this year.
Second quarter
Operating profit for the second quarter amounted to USD 63.4 million (USD 38.5 million), which is the best quarterly result ever for the continuing operations. Utilisation of the rig fleet was 99 per cent (88 per cent). This improvement reflects the higher utilisation and significantly higher dayrates for MSV Regalia and Safe Bristolia. Dayrates for Jasminia and Safe Hibernia have also increased in Gulf of Mexico on renewal of these contracts which expired in February and May, respectively.
Safe Astoria was on standby dayrate in April and on full operating dayrate from 1 May 2008. Safe Bristolia commenced operations on the UK shelf during the second week of April. All other vessels have been fully utilised in the second quarter.
Net financial costs amounted to USD 14.7 million (USD 4.8 million). The comments made to the financial costs for the half-year are applicable also for the second quarter.
Tax costs expensed in the second quarter amounted to USD 0.2 million (USD 3.4 million positive).
Net profit from continuing operations amounted to USD 48.5 million (USD 37.1 million), corresponding to diluted earnings per share of USD 0.21 (USD 0.16).
Net profit including discontinued operations amounted to USD 58.4 million (USD 46.2 million), which is the equivalent of diluted earnings per share of USD 0.25 (USD 0.20).
For more information, please download the full report.
Prosafe is the world's leading owner and operator of semi-submersible service rigs. Operating profit reached USD 222.2 million in 2007. The company operates globally, employs approx. 430 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.
Larnaca, 28 August 2008 Prosafe SE
For further information, please contact:
Arne Austreid, President and CEO Phone no: +357 992 75 030
Karl Ronny Klungtvedt, Exec. Vice President and CFO Phone no: +357 996 88 169
