Prosafe Sails out of Second Quarter with $125.9MM

Prosafe has delivered its best second quarter ever, with operating revenues of US $125.9 million (US $95.9 million in the same period last year) and operating profit before depreciation of US $75.3 million (US $50.0 million). Operational performance was strong and utilization 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 May 14, 2008 to distribute 90.1% of the shares in Prosafe Production Public Limited to the shareholders of Prosafe SE. Distribution of the shares took place on May 27, 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 US $105.4 million (US $62.2 million). Utilization of the rig fleet was 93% (87%). This improvement reflects mainly the higher utilization and significantly higher dayrates for MSV Regalia and Safe Bristolia.

Net financial costs amounted to US $29.5 million (US $17.8 million). This change reflects a favorable 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 US $3.3 million (US $0.1 million), out of which US $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 US $72.6 million (US $44.3 million), corresponding to diluted earnings per share of US $0.32 (US $0.19).

Net profit including discontinued operations amounted to US $110.6 million (US $62.3 million), which is the equivalent of diluted earnings per share of US $0.48 (US $0.27).

Total assets at June 30 amounted to US $1,362.7 million (US $2,336.4 million), while the equity ratio declined to 14.7% (47.5%) 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 US $63.4 million (US $38.5 million), which is the best quarterly result ever for the continuing operations. Utilization of the rig fleet was 99% (88%). This improvement reflects the higher utilization 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 May 1, 2008. Safe Bristolia commenced operations on the UK shelf during the second week of April. All other vessels have been fully utilized in the second quarter.

Net financial costs amounted to US $14.7 million (US $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 US $0.2 million (US $3.4 million positive).

Net profit from continuing operations amounted to US $48.5 million (US $37.1 million), corresponding to diluted earnings per share of US $0.21 (US $0.16).

Net profit including discontinued operations amounted to US $58.4 million (US $46.2 million), which is the equivalent of diluted earnings per share of US $0.25 (US $0.20).
 

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