Company presentation

DNB Markets Energy & Shipping Conference March 2024

Disclaimer

All statements in this presentation other than statements of historical fact are forward-looking statements, which are subject to a number of risks, uncertainties, and assumptions that are difficult to predict and are based upon assumptions as to future events that may not prove accurate. Certain such forward-looking statements can be identified by the use of forward-looking terminology such as "believe", "may", "will", "should", "would be", "expect" or "anticipate" or similar expressions, or the negative thereof, or other variations thereof, or comparable terminology, or by discussions of strategy, plans or intentions. Although we believe that the expectations reflected in such forward -looking statements are reasonable, these forward-looking statements are based on a number of assumptions and forecasts that, by their nature, involve risk and uncertainty. Various factors could cause our actual results to differ materially from those projected in a forward-looking statement or affect the extent to which a particular projection is realized. Should one or more of these risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this presentation as anticipated, believed or expected. To the extent this information includes information sourced from third parties, such as concerning the industry in which Prosafe operates, has not prepared such information and assumes no responsibility for it. Prosafe does not intend and does not assume any obligation to update any industry information or forward-looking statements set forth in this presentation to reflect subsequent events or circumstances.

2

Prosafe at a glance

  • Leading owner and operator of high-end accommodation vessels
  • Global operations, Brazil and North Sea presence
  • 4 modern vessels built for the harshest environments, 3 legacy assets
  • Two additional high-end vessels at yard
  • Improving market outlook across key North Sea and Brazil markets

3

Available

Caledonia Boreas

Concordia

Zephyrus EurusNotos

At yard

Nova

Vega

Late-cyclical market trailing E&P spending and drilling rates

Growth in E&P Capex vs. fleet utilisation

40%

Prosafe's annual fleet utilisation (rhs)

Growth E&P capex

100%

30%

90%

CapexE&PingrowthAnnual(%)

80%

utilisationfleetannualProsafe's(%)

20%

20%

70%

10%

60%

0%

50%

-10%

40%

30%

-20%

-30%

10%

-40%

0

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024E

4 Source: Rigbase, SB1 Markets

Trailing 12-month average fixture rates

Jack-up vs. accommodation

Accommodation (LHS)

JU Rigs (RHS)

350

200

300

JU rigs up 160%

180

160

(USDk/day)ratesAccommodation

since low

(USDk/day)ratesup-Jack

250

Accommodation up

140

200

120

Correlation = 0.70

100

150

80

100

60

40

50

76% since low

20

0

0

Jun-05Jun-06Jun-07

Jun-08Jun-09Jun-10Jun-11Jun-12Jun-13Jun-14Jun-15

Jun-16Jun-17Jun-18Jun-19Jun-20Jun-21Jun-22

Jun-23

Brazil FPSO growth driving increased demand

Brazil market balance (units)1

Potential FPSO

driven demand

Identified open demand

13

Contracted

12

10

9

9

9

2021

2022

2023

2024

2025

2026

2027

Floating production units in Brazil2

+29%

88

90

84

77

80

70

72

62

63

64

66

58

51

53

48

46

42

32

34

36

29

2009

2011

2013

2015

2017

2019

2021

2023

2025

2027

2029

5

1)

Source: Prosafe, company and market reports

2)

Source: Petrobras Strategic Plan 2024-28, market reports

Tight North Sea market with Prosafe holding the available capacity

North Sea capable accommodation rigs (UK+NCS)

Vessel

2023

2024

2025

2026

2027

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Safe Boreas

Only DP3 vessel

in Region (UK and NCS capable)

Safe Caledonia

Available for work in UK

Safe Zephyrus

Available for work in Brazil/North Sea (UK and NCS)

Brazil

Floatel Endurance

Norway

Norway

North Sea

Canada

North Sea

Norway

Floatel Superior

Nor.

Norway

UK

Norway

Norway

Norway

Floatel Triumph

Australia

UK

Australia

Australia

Floatel Victory

Brazil

US

Brazil

Haven (jack-up)

Denmark

Norway

Norway

- Firm/option

- Actual or potential mob

- LOI

6

Source: Prosafe, company and market reports

NCS: Norwegian Continental Shelf

Comment

  • North Sea operators planning future campaigns
  • Ongoing bidding for 2025 and awards expected in H1 2024
  • Safe Boreas only DP3 semi in North Sea region available for 2024 and 2025 summer work.
  • Safe Caledonia available for UK work with limited competition in coming years
  • Currently, limited prospects for 2024
  • Controlling the open capacity in 2026 when adjusted for vessel location / mobilisation
  • Upside potential in rates from last high fixture of USD 200-210k per day

Improving markets for high-end rigs1

Median backlog per rig

Median revenue backlog per rig

Median fixing horizon

(months)

(USD million)

(years to end of last contract)2

2.5x

3.8x

5.6x

Options

32

94

2.8

Firm

5

26

72

4

2.1

15

13

2

27

37

1

1.0

22

25

12

13

0.5

Jan '21

Jan '22

Jan '23

Jan '24

Jan '21

Jan '22

Jan '23

Jan '24

Jan '21

Jan '22

Jan '23

Jan '24

  1. Includes high end (tier-1) units in North Sea, Brazil, GoM, Canada and Australia (13 units), including options
  2. Time to the end of latest firm fixture (including gaps between contracts)

7

Source: Prosafe, company and market reports

Rates in Brazil and the North Sea reaching 2015 levels

Brazil day rate development (USD/d)

  1. 000
  1. 000

160 000

Latest datapoint

140 000

120k-130k

120 000

Latest contract

100 000

80 000

60 000 Current Brazil opex: USD 50-54k/d

  1. 000
  1. 000

0

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

North Sea day rate development (USD/d)

400 000

350 000

300 000

250 000

200 000

150 000

100 000

50 000

Current North Sea opex: USD 25-65k/d1

0

Latest datapoint

at 200-210k

Latest contract

Av. Dayrate

NCS UKCS/Denmark

Avg day rate of USD 130k/day would equate to approx. USD 30m EBITDA

Avg day rate of USD 200k/day for 7 months2 would equate to approx. USD 30m EBITDA

8

1

Depends on region and if the vessel is moored, DP or non-DP

2

Assuming only summer work in the North Sea

Indicative earnings potential in an improving market

Current fleet EBITDA potential

USD million

Current

Peak2

Growth

market1

2014-15

Case3

EBITDA/vessel North Sea

22

50

40

EBITDA/vessel Brazil/RoW

25

30

30

# vessels in North Sea

2

2

3

# vessels in Brazil/RoW

4

4

6

EBITDA

144

220

300

Selling, General & Administrative (SG&A)4

(19)

(20)

(25)

Illustrative EBITDA

125

200

275

Current NIBD of USD 345m5 vs EBITDA potential

2.8x

1.7x

0.9x

  1. Based on latest observable and relevant fixtures of USD 200k/day in North Sea and USD 120k/day in Brazil, excluding Safe Scandinavia
  2. Excluding Mexico and Safe Scandinavia during TSV operation. Excludes Safe Scandinavia
  3. Includes newbuilds Nova and Vega plus Safe Scandinavia, calculations exclude required delivery payments, mobilisation and reactivation costs
  4. Expected underlying SG&A run rate
  5. NIBD per Q4'23, NIBD is reduced by a USD 9.5 million fair value adjustment of which USD 2.9 million is short- term

Historic average EBITDA per vessel of USD 29 million from current fleet1

50

53

~USD 50m breakeven EBITDA for

newbuild2

45

42

(day rate of ~USD 200k/day)

38

36

31

34

EBITDA of USD 29 million / vessel

(day rate of ~USD 145k/day)

22

7

11

3

1

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023E

  1. Based on historical current fleet of Safe Concordia, Safe Caledonia, Safe Eurus, Safe Notos, Safe Zephyrus, Safe Boreas and Safe Scandinavia (excluding TSV contract). Excluding SG&A
  2. Assumes Brazil capable vessel at a total cost of USD 350m, discounted at 12.5% WACC, rig life of 30 years, USD 56k/d opex, 3% topline tax, USD 4m in capex per year (incl. SPS)

Source: Prosafe, SB1M

9

Enterprise value to replacement cost among the lowest

Accommodation vessels attractively priced compared to other assets1

100%

EV / Replacement Cost

90%

80%

70%

61%

60%

57%

56%

50%

46%

40%

40%

34%

28%

30%

20%

10%

0%

BORR

SOFF (CSV)

TDW (PSV) ODL (HE

Accomodation

Seadrill (7th

PGS

(Jackup)

semi)

vessel (PRS)

gen. drillship)

(Ramform

3D vessel) *

  • Lower Average EV / replacement than other assets

Low Prosafe asset valuation relative to replacement cost2

USD million

1 600

USD 1 - 1.5 bn

1 400

1 200

1 000

800

600

High ~550

EV ~30 - 45%

of RC

400

105

Mid ~470

200345

0

EV

Broker values

Replacement cost

Net Debt

Market Cap

  • Accommodation vessels trading at 30% to 45% of historical newbuild cost
  • Broker valuations confirm robust asset backing to EV

10

1)

Source: Sparebank 1 Markets, Factset, Prosafe. Note* Implied value of PGS' fleet is highly sensitive to assumed MC library value.

2)

Source: Prosafe, independent brokers. Replacement cost estimated in range of USD 1 to 1.5bn.

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Disclaimer

Prosafe SE published this content on 06 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 March 2024 14:08:04 UTC.