Prosafe posts fall in profit. Provides optimistic outlook

  • Exploration & Production

Prosafe, the Oslo-listed provider of offshore accommodation units, posted a drop in both its second quarter revenue and profit.

The company’s revenue fell to $92.5 million, from $133 million a year ago, and profit dropped to $12.2 million from $42 million in the second quarter of 2014.

Fleet utilisation in the second quarter was 58 per cent, with several vessels on yard stays.

However, Prosafe’s third quarter has kicked off with a bang as the company has entered into contracts of a total gross value of approximately $240 million so far in August. From Q1 2017 Safe Eurus will work for three years for Petrobras in Brazil. Safe Notos will be deployed on an eight-month contract in the UK from Q2 2016, with Safe Zephyrus covering a short period at the start of the contract.

The company provided a relatively optimistic take on what’s ahead for the floating accommodation market.

“The oil and gas services market remains challenging, and in the current lower oil price environment Prosafe has seen prospects being deferred or work scopes being reduced. However, Prosafe has been awarded several new contracts and extensions, resulting in improved short-term revenue visibility.  Set against this relatively robust short-term outlook, uncertainty remains in respect of the medium term.

“Nevertheless, the company should be well placed to continue to take relative advantage of market conditions in the longer term.”

Offshore Energy Today Staff

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