Prosafe: Market to Pick up from 2018

 

* Says higher EBITDA was due to an improved cost performance both onshore and offshore

 

* Says fleet utilisation in Q4 was 43 percent vs 63 pct the same quarter a year ago

 

* Says an impairment of $84.7 million has been charged to income statement in Q4 due to few prospects in the foreseeable future for the smallest vessel in the fleet, the Safe Astoria

 

* Says sees combined 2016 and 2017 EBITDA at $365 mln, up from pvs guidance of $320 mln, with 2017 anticipated to be a low point with $110 mln plus

 

* Says market is at or is near bottom of cycle and that one can anticipate a gradual recovery in demand and utilisation from 2018

 

* Says Prosafe will continue to be active and assist in the supply-side rebalance towards 2020

 

* Says continues to rebuild its position by taking the lead in respect of cost efficiency, scrapping, fleet renewal and consolidation while retaining its focus on safe operations

 

* Prosafe scrapped four rigs since summer 2016

 

* Says sees 2017 offshore opex level at $130-$140 mln from pvs guidance of $140-150 mln, and onshore opex level at $24 mln from pvs guidance of $28 mln

 

* Says eyes further reductions of both offshore and onshore capex by around 10 percent by Q2

 

* Says sees annual fleet capex at $10-15 mln from pvs guidance of $20-30 million, excluding new-builds and conversions

 

* Says its "guarded optimism" is based on market activity anticipated to gradually pick up from 2018 driven mainly by a normalization of brownfield markets

 

* Prosafe owns and operates semi-submersible accommodation, safety and support vessels

 

* Oslo-listed Prosafe shares were trading 3.6 percent up from the previous close by 1200 CET (1100 GMT) at 37 Norwegian crowns ($4.45) per share, outperforming a European oil gas and index up 0.8 pct.