Q2 2024 Prosafe SE Earnings Call Transcript
Key Points
- Prosafe SE (FRA:1Q6) reported no Lost Time Injuries (LTIs) for the last 12 months, indicating strong safety performance.
- The company secured letters of intent for the Boreas and Caledonia vessels, with expectations to finalize contracts soon.
- EBITDA for Q2 2024 was $6.6 million, consistent with Q1 and significantly improved from the previous year.
- Cash reserves increased to $66 million from $63 million in the previous quarter.
- The company has good visibility for 2025 and 2026, with high expectations for contract extensions and new opportunities.
- Fleet utilization was only 56%, indicating underutilization of available resources.
- Significant CapEx of $80 million is anticipated for vessel maintenance and reactivation, which could strain financial resources.
- Loans maturing in 2025 require refinancing, adding financial uncertainty.
- The unfavorable tax regime in the UK could impact future operations and profitability in that region.
- The Concordia vessel faces potential layup unless a significant upfront payment contract is secured, reflecting challenges in maintaining older assets.
Welcome to the second-quarter 2024 presentation for Prosafe. In the quarter, we had a very good safety performance. We actually had no LTIs for the last 12 months. The utilization of the operating fleet was 56% and close to 100% for the four vessels that's actually were working.
In the quarter, we have secured letters of intent both Boreas and Caledonia, and we expect those to firm up during August.
Numbers-wise, the EBITDA came in at $6.6 million in the quarter. That was in line with the first quarter and very much in line with expectations. We saw a significant improvement compared to last year, where actually revenue for the first half of this year, revenue more than doubled, and EBITDA came in at $14 million versus minus $16 million last year. Cash stands at $66 million, up from $63 million last quarter.
We have runway into second, third quarter of 2025 versus our covenants and liquidity. And the improvement is very much due to the payment terms we have managed to negotiate for the letter of intents that we have secured.
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