Prosafe: Operational update Q4 2016

On Jan 19, 2017

The fleet utilisation rate in the fourth quarter of 2016 and for the year 2016 was 43 per cent.

Safe Boreas continued the contract with Repsol Sinopec (formerly Talisman Sinopec) in UK and was in full operation throughout the quarter. The Repsol Sinopec contract at Montrose has been extended till 10 February 2017.

Safe Zephyrus commenced the contract with Aker BP in Norway in late July 2016 and was on contract throughout the fourth quarter. The contract has been extended and currently runs until end January.

Safe Notos commenced its 3 years and 222 day duration contract for Petrobras on 7 December 2016. The mobilisation income of USD 17 million for the Safe Notos will be recognised as revenue in the fourth quarter 2016. Safe Concordia was fully contracted in the quarter for Petrobras and continues on short-term extensions at market adjusted dayrate.

Safe Scandinavia Tender Support Vessel (TSV) was fully contracted in the quarter with Statoil. The TSV contract has a firm period until July 2018.

Regalia operated for Shell in the UK from the beginning of August until mid-October and is currently laid-up in the UK.

Safe Caledonia, Safe Bristolia, Safe Astoria, Safe Lancia and Safe Regency were idle in the quarter. Safe Bristolia is cold-stacked in Norway, Safe Caledonia is laid-up in the UK, Safe Lancia is cold-stacked in Texas, Safe Regency is laid-up in Curaçao and Safe Astoria is cold-stacked in Indonesia.

Prosafe has the Safe Eurus in a preserved, strategic stacking mode with COSCO (Qidong) Offshore Co., Ltd. in China. Prosafe has also acquired control over the Safe Nova and Safe Vega and will enter into negotiations with Cosco and related parties for a workable delivery and commercial solution of the two semi-submersibles that are nearing completion. If no agreement is made, Prosafe has the right to claim cancellation on the newbuilding contracts due to late delivery and claim deposit of approx. USD 60 million fully secured by Bank of China.

Following the completion of the acquisition of Safe Nova and Safe Vega, Prosafe has now taken a final decision to sell Safe Lancia for scrap/recycling.