Q1 2025 Prosafe SE Earnings Call Transcript
Key Points
- Prosafe SE (FRA:1Q6) secured a 2.5-year contract extension for the Zephyrus in Brazil at a higher rate, enhancing revenue stability.
- The company successfully sold the Concordia and Scandinavia, streamlining its fleet to focus on five core vessels.
- A refinancing agreement was reached, converting $193 million of debt into equity, significantly improving the balance sheet.
- Prosafe SE (FRA:1Q6) received strong support from lenders and shareholders for its refinancing plan, ensuring a fully funded business plan.
- The company's backlog increased to $545 million, reflecting successful contract renewals and new awards, particularly in Brazil.
- Reactivation costs for the Boreas and Caledonia amounted to approximately $3 million, impacting quarterly expenses.
- The refinancing process incurred significant costs, estimated to be just over $15 million, affecting profitability.
- Prosafe SE (FRA:1Q6) faces challenges in reactivating the Safe Nova and Safe Vega due to financing constraints.
- The North Sea market shows low visibility for 2026, with better prospects only emerging in 2027 and beyond.
- The company needs to reactivate the DP system on the Safe Caledonia to compete effectively in the West African market, requiring additional CapEx.
Welcome to the Q1 2025 presentation for Prosafe. So the last quarter or last -- so this year actually been a very positive and active year for the company, and we have reached several milestones.
And just covering operation, has been good in the quarter, so no sort of unexpected events. Last, we have fixed, as we have announced earlier, the Zephyrus for another 2.5 years in Brazil. That was an extension of the current contract. That means we do not have to go in and do sort of cleaning of the hole. So it's going to -- actually has gone straight onto the new contract or the extension of the contract at a slightly higher rate.
We did sell the Concordia and Scandinavia in the quarter. So that means that we're now left with the five core vessels. We are working on reactivation of the Boreas and Caledonia. And of course, I will come back to the Notos that we are in a very good position to extend the contract or renew the contract for Notos for another four years.
Numbers were fairly stable versus where we should be, and the cash
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