Flotel giant Prosafe posts loss for the fourth quarter 2015

  • Exploration & Production

Prosafe, the world’s largest provider of offshore accommodation units for the oil and gas industry, has posted a net loss of $6.8 million for the fourth quarter of 2015, down from $51 million profit for the fourth quarter of 2014.

The company’s full year net profit was $85.6 million, down from a net profit $178.8 million for the full year 2014. Prosafe said its fleet utilization fell to 62 percent, down from 92 percent a year ago.

Providing its take on the industry outlook, the company said the oil and gas services market would remain challenging in the short and medium term with continued volatile oil price and reductions in E&P capital expenditure.

“Accordingly, Prosafe is taking proactive measures by renewing and updating its fleet, strengthening the balance sheet, increasing its financial flexibility and securing liquidity buffers. In addition, Prosafe continues to focus on cost optimisation and reduction,” Prosafe said.

Bullish about long term

However, the flotel provider sees the activity picking up from 2018 onwards.

“The longer term outlook for offshore oil and gas remains positive with activity expected to improve in the medium to long term,” the flotel giant noted.

On the fleet expansion note, Prosafe took delivery of the Safe Zephyrus flotel in January, and the rig is expected to start its contract in Norway in the third quarter of the year.

Additionally, another newbuild, the Safe Notos, being built by Cosco in China, is expected to be delivered in February. The Safe Notos will be deployed in the UK sector of the North Sea, on an eight-month firm contract with an undisclosed client.

Offshore Energy Today Staff

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