Prosafe balancing asset optimization and capital reset

Oslo Stock Exchange-listed semi-submersible accommodation vessel owner and operator Prosafe has shed light on its activity in the first quarter of 2025.

Prosafe reported a revenue of  $33 million in Q1 2025, which is similar to the $34 million in the same period last year. Earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to $4.6 million for the quarter, representing a decrease compared to $7.2 million in Q1 2024. Four vessels were active during the quarter.

“Operationally, we maintain high utilisation on our active fleet, while making good progress on preparing for new contracts in Australia and the UK. We also continue to build backlog with Safe Notos recently named winner, subject to final contract, of a 4-year tender with Petrobras in Brazil,” noted Prosafe CEO Terje Askvig.

“We are also very pleased with the support shown by our lenders and shareholders through the agreed refinancing which will create a sustainable capital structure going forward and ensure that Prosafe continues to be the world’s leading provider of floating accommodation vessels and Units for Maintenance and Safety (UMS).”

The company’s shareholders agreed on the terms of recapitalization at a meeting held on May 16, 2025, with completion expected in Q3 2025. This will entail the equitization of $193 million of debt for 90% of the shares in the company. 

Prosafe expects the transaction to provide a sustainable capital structure and sufficient liquidity to meet capital expenditure and working capital needs for the foreseeable future. Following recapitalization, its net debt is projected to total $220 million.

As for fleet activity, two vessels were sold. The first one, Safe Concordia, was on contract until early March and was delivered to the buyer on March 13, 2025. The 2005-built unit is a DP2 semi-submersible ASV constructed at Keppel FELS shipyard in Singapore. It underwent an upgrade in July 2015.

The second, the 1984-built Safe Scandinavia, spent over six years in cold layup before being sold. After announcing the sale in February, Prosafe disclosed in March that the vessel would leave its fleet later this year. As stated in the Q1 results, the vessel was delivered to the buyer in mid-May.

Apart from this, the Safe Boreas started its journey on a heavy lift vessel to Singapore ahead of its Australia contract with a start-up window from mid-November 2025 to mid-February 2026. The contract is set to last until the end of 2026, with an option for an extension until the end of Q2 2027.

The 1982-built Safe Caledonia was reactivated and is expected to mobilize to the Captain Field, UK, by June 1, 2025, when its contract with Ithaca Energy is slated to start.

Three vessels working for Petrobras in Brazil achieved a 99% utilization rate, according to Prosafe. The vessel operator believes the ongoing tenders with the Brazilian firm confirm strong market fundamentals in Brazil, while increased backlog, improved market, and recapitalization position it for improved earnings.

The first vessel working with Petrobras, Safe Zephyrus, had its contract extended by 954 days, allowing it to stay with the Brazilian giant until Q3 2027. Featuring the GVA 3000E design, the 2016-built vessel was constructed at Jurong Shipyard, Singapore.

The second one, Safe Eurus, is contracted to Petrobras until Q1 2027. This is an enhanced GustoMSC Ocean 500 design semi-submersible accommodation vessel delivered from COSCO in May 2019.

Safe Eurus’ sister ship and the third vessel working with the Brazilian giant, Safe Notos, was declared the winner of a four-year tender in Brazil earlier this month. Subject to an approval process and a formal award, the contract with Petrobras is slated to last four years, until Q3 2030, and is valued at approximately $204 million.