Prosafe (PRS) Q2 2024 earnings summary

Executive summary

• Achieved strong safety and operating performance, with no LTIs and 56% fleet utilization as four out of seven vessels operated in Q2 2024.

• Secured conditional LOIs for Safe Boreas (Australia) and Safe Caledonia (UK), adding up to $137 million in potential contracts and building backlog into 2027.

• Ongoing discussions for a potential two-year extension for Safe Zephyrus in Brazil, with Petrobras expressing interest.

• Operational focus remains on maximizing vessel utilization and securing new contracts, particularly in Brazil and the UK.

• Liquidity position at $65.9 million at end of Q2, with measures under review to strengthen liquidity and balance sheet.

Financial highlights

• Q2 2024 revenue was $34.2 million, up from $21.0 million in Q2 2023, driven by higher vessel utilization.

• Q2 2024 EBITDA was $6.6 million, a significant improvement from negative $9.8 million in Q2 2023; H1 EBITDA reached $14 million versus -$16 million last year.

• Q2 net loss narrowed to $10.3 million from $25.7 million; H1 net loss was $18.9 million, down from $47.4 million.

• Cash flow from operations was $15.5 million in Q2 and $14.1 million in H1, both positive compared to prior year losses.

• Cash balance at quarter-end was $65.9 million, up from $63 million in the previous quarter.

Outlook and guidance

• Good contract visibility into 2025 and 2026, with backlog of $323 million and expectations for further growth if options are exercised.

• Anticipates $80 million in CapEx for 2025, mainly for SPS, thruster overhauls, and vessel reactivations.

• Liquidity runway extends into Q2/Q3 2025, with refinancing planned ahead of 2025 loan maturities.

• Expectation of higher vessel demand, utilization, and day rates, particularly in Brazil and the North Sea.

• Management anticipates earnings growth and improved backdrop for refinancing and fleet expansion.