• Refinancing Need: Total financing requirement of $400 million, including $70 million cash need for 2025.
• Revenue: Broadly in line with previous quarters, with an additional $1 million from one-off other income.
• Backlog Growth: Increased by 44% compared to the same quarter last year.
• Cash Balance: Approximately $50 million, with significant prepayments expected from clients.
• Utilization Rate: 100% utilization for all operational vessels.
• Daily Rate for Safe Eurus: $86,000 per day on contract with Petrobras until 2027.
• CapEx for 2025: Approximately $70 million, primarily for reactivations and SPSs.
• Debt Reclassification: Long-term debt reclassified as short-term due to maturity within one year.

• Warning! GuruFocus has detected 3 Warning Signs with FRA:1Q6.

Release Date: February 03, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Prosafe SE (FRA:1Q6) achieved 100% utilization for all four operational vessels in Q4 2024.
• The company successfully extended the contract for the Zephyrus vessel for an additional two years.
• There is significant market activity in Brazil, aligning with Prosafe SE (FRA:1Q6)'s strategic focus, leading to optimism about future opportunities.
• The company's backlog has grown by 44% compared to the same quarter last year, indicating strong demand and execution.
• Prosafe SE (FRA:1Q6) is making good progress on refinancing efforts, with a target to complete a $400 million refinancing within the first half of the year.

Negative Points

• The company is facing increased costs, particularly related to the Concordia vessel, which may impact financial performance.
• Prosafe SE (FRA:1Q6) has significant capital expenditure needs, with approximately $70 million required in 2025 for reactivations and special periodic surveys (SPS).
• The Safe Scandinavia vessel remains cold stacked, costing the company $1 million annually, with no immediate contract visibility.
• There is uncertainty regarding the future of the Concordia vessel, as it may be laid up or sold if a suitable contract is not secured.
• The company is reliant on successful refinancing to meet its $400 million financial needs, which includes debt maturing at the end of the year.

Q & A Highlights

Q: With Petrobras requiring up to three incremental units in the new tender, do you see any potential to bid new builds? A: Terje Askvig, CEO: We are assessing this possibility. The new buildings meet the specifications required. However, in Brazil, the lowest bidder typically wins, so we are keeping our strategy close to our chest.

Q: Would you expect a meaningful increase in day rates in this tender compared with the 120 level that we've seen recently? A: Terje Askvig, CEO: We believe market dynamics are favorable, which should be in our favor. However, we prefer to be cautious in commenting on specific market expectations for these contracts.

Q: Is there any update on the marketing of Safe Scandinavia? A: Terje Askvig, CEO: We are actively marketing Safe Scandinavia for contracts and are in dialogue with a few parties regarding a potential sale, but there is nothing concrete to report at this time.

Q: Can you provide more details on the refinancing process? A: Reese McNeel, CFO: We are working on refinancing a total of $400 million, which includes debt due at the end of the year and a cash need for 2025. We aim to conclude this process in the first half of the year and have good dialogue with stakeholders.

Q: What is the current status of the Safe Boreas and Safe Caledonia reactivations? A: Terje Askvig, CEO: Safe Boreas is expected to be on contract towards the end of the year, and Safe Caledonia is set to go on contract with Ithaca on June 1. Both reactivations are proceeding according to plan.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.