Prosafe (PRS) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was USD 34.6 million, with EBITDA at USD 5.0 million, supported by 57% fleet utilisation and strong operational safety; net loss widened to USD 11.8 million from USD 5.7 million year-over-year.

• Backlog nearly doubled year-over-year to USD 400 million, with new contracts and extensions for Safe Boreas, Safe Caledonia, and Safe Zephyrus, providing high visibility into 2025 and 2026.

• Liquidity at quarter-end was USD 63.5 million, down from USD 74.6 million at end Q4 2023, and a refinancing process is underway to address USD 343 million in 2025 debt maturities.

• Market outlook is positive, driven by tightening supply, robust demand in Brazil, and North Sea opportunities extending into 2028.

Financial highlights

• Q3 2024 operating revenues were USD 34.6 million, up from USD 32.8 million in Q3 2023; EBITDA declined to USD 5.0 million from USD 8.4 million year-over-year.

• Net loss for Q3 2024 was USD 11.8 million, compared to a net loss of USD 5.7 million in Q3 2023; EPS was negative USD 0.66.

• Operating cash flow for the quarter was USD 9.1 million; capex spend was USD 2.8 million.

• Total assets stood at USD 465.4 million, with an equity ratio of 0.9% and net interest-bearing debt of USD 353.9 million.

• Net working capital was negative at USD 3.1 million, compared to positive USD 11.4 million last year.

Outlook and guidance

• Expectation of improved economics for the Zephyrus contract extension with Petrobras and higher utilisation and earnings growth in coming years.

• Refinancing of approximately USD 400 million, including USD 343 million debt maturing end-2025, targeted for completion in H1 2025 and likely to include an equity component.

• Year-end cash balance projected around USD 50 million, with a covenant of USD 28 million.

• Clear liquidity runway into Q2/Q3 2025.

• Brazil market tightening with new Petrobras tenders and multi-year contracts; North Sea campaigns planned for 2025–2028.