Prosafe refers to the press release from 9 April 2020 regarding discussions with
clients about current and upcoming contracts in light of COVID-19 and the oil
price collapse. Certain discussions remain ongoing. Please see status and update
per vessel below.
The Safe Zephyrus was ready to mobilize from Norway to support EnQuest’s Thistle
project, but was instructed by EnQuest on 20 March 2020 not to mobilize. Prosafe
has claimed the full contract value, ca. USD 2 million. Thereafter, Safe
Zephyrus was scheduled to mobilise to Shell at Shearwater to commence a 110-day
contract with a 30-day option in Q2 2020. Prosafe has been informed by Shell
that this project will not be performed in 2020 and discussions with the client
are ongoing. The vessel was currently laid up at Averøy yard in Norway.
Safe Caledonia was laid up in the UK. The vessel was initially prepared to
commence a 162-day contract with a 30-day option for Total at the Elgin complex
in the UK sector of the North Sea from mid-April 2020, but Prosafe and Total
have agreed to defer this project by one year.
Safe Notos has been operating on a three-year and 222-day contract for Petrobras
in Brazil since December 2016. Safe Eurus has been providing safety and
maintenance support to Petrobras during a three-year contract since November
2019. On 21 March 2020, client personnel on both vessels were demobilised and
the vessels were moved closer to shore. During this period, the vessels were on
95% stand-by day rate. From early April 2020, Prosafe has been requested to
agree with a suspension of the contract for a period of up to 120 days during
which period no income was recognised, but all logistical services, fuel and
catering support will continue to be provided by Petrobras, and any days of
suspension will be added to the firm period of the contract. Commercial and
payment terms related to the recommencement are subject to ongoing discussions.
Safe Concordia completed the contract for Equinor at the Peregrino FPSO in the
Campos Basin offshore Brazil on 11 May 2020 and is presently laid up in Brazil
available for charter. The vessel was on full day rate during the operational
period in the quarter.
Safe Scandinavia, Safe Boreas and Regalia were idle in the quarter and were laid
up in Norway. Regalia is being marketed for recycling.
Although the impact from Covid-19 on the macro environment has been challenging,
the company has successfully implemented proper safety measurements at work
places and vessels to protect people and assets, as well as a number of cost-
saving initiatives to protect liquidity.
In light of the commercial discussions with clients as outlined above, there is
uncertainty related to the extent to which the order backlog will materialize in
2020, as well as to the final outcome of these negotiations.
Please refer to separate press release from 31 July 2020 regarding the ongoing
discussion with lenders about a long-term financial solution for the company.
Prosafe is a leading owner and operator of semi-submersible accommodation
vessels. The company is listed on the Oslo Stock Exchange with ticker code PRS.
For more information, please refer to www.prosafe.com (http://www.prosafe.com)
Stavanger, 3 August 2020
For further information, please contact:
Jesper K. Andresen, CEO
Phone: +47 51 65 24 30 / +47 907 65 155
Stig Harry Christiansen, Deputy CEO and CFO
Phone: +47 51 64 25 17 / +47 478 07 813
This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act