Prosafe SE: First-quarter results 2025

Core Viewpoint - Prosafe SE reported a decline in EBITDA for Q1 2025, but maintains high utilization of its fleet and is progressing on new contracts, indicating a focus on operational efficiency and future growth opportunities [1][3]. Financial Performance - EBITDA for Q1 2025 was USD 4.6 million, down from USD 7.2 million in the same period last year [1]. - Revenues decreased slightly to USD 33 million from USD 34 million year-over-year [4]. - Cash flow from operations improved to USD 28.4 million, compared to a negative USD 1.4 million in the previous year [4]. - Capital expenditures (Capex) increased significantly to USD 21.2 million from USD 1.7 million, attributed to the reactivation of vessels [4]. Operations and Contracts - The company had four active vessels during the quarter, with high utilization rates [1][3]. - Safe Notos was recently named the winner of a 4-year tender with Petrobras in Brazil, pending final contract [3]. - Safe Zephyrus has been extended with Petrobras until Q3 2027, and Safe Caledonia is reactivated for a UK contract starting June 1 [4]. Recapitalization and Financial Structure - A recapitalization plan has been agreed upon, equitizing USD 193 million of debt for 90% of the company's shares, supported by lenders [4]. - Existing shareholders will retain 5% ownership and have the option for an additional 5% at EUR 0.01 per share [4]. - The estimated post-recapitalization net debt is projected to be USD 220 million, with expected completion in Q3 2025 [4]. Market Outlook - Ongoing Petrobras tenders indicate strong market fundamentals in Brazil, while North Sea operators are planning future campaigns with a focus on 2027 and beyond [4]. - The increased backlog and improved market conditions position Prosafe for enhanced earnings in the future [4].