Accommodation rig provider Prosafe improved its operating result in Q4 upon restructuring last year, which cut 75 percent off the company’s debt. Management is optimistic about 2022.
Photo: PR / Prosafe
Financially strained accommodation rig company Prosafe is optimistic about its prospects following last year’s restructuring and the fourth quarter of 2021 providing an operating result (EBITDA) of USD 4.4m, according to a statement.
This was a clear improvement from Q4 2020, which saw the operating result come to USD 0.7m.
The company also reports a significant improvement of its fleet utilization, which in Q4 came to 59.3 percent against 25 percent in the same period of 2020.
Thanks to the restructuring of the company in December last year, Prosafe had a liquidity reserve of USD 74m at its disposal by the end of Q4, and management is optimistic about the year to come.
”At the start of 2022, Prosafe is revitalized and well positioned for growth and value creation. The company has secured a high utilization for 2022 and has increased its order backlog,” reads the statement.
Debt cut by three fourths
Prosafe has been struggling with a weak market since the sudden drop in oil prices in 2014, which has led to low utilization in the years since and in the end brought the company into a situation where it needed a comprehensive restructuring in order to get a handle on its debt – a process that was finally carried through in December last year.
The company’s creditors agreed to convert debt of a total of USD 1.087bn into shares, and the restructuring ended up reducing total debt by 75 percent. Thus, Prosafe ended up with share capital of USD 439.9m and USD 60m in cash holdings at the end of 2021.
English edit: Jonas Sahl Hollænder
