Prosafe showed a considerable drop in its revenue during the second quarter of the year. The company's expectations for demand in the offshore vessel market, however, remain optimistic.

Prosafe, a leader in the offshore vessel sector, has seen a significant drop in revenue for the second quarter of 2023. However, as it faces challenges in the North Sea market due to restrictions and maintenance, the company envisions this Friday, (18 /08), a promising future with high bidding activity, especially in Brazil, and anticipates an increase in daily rates. The expectation is for a sharp increase in demand for offshore vessels in the coming months.

Prosafe presents a drop in its revenue in the third quarter of 2023

The company Prosafe presented a contrasting panorama in its recent revenues to the market.

In the second quarter of 2023, revenue amounted to $21 million, a notable drop compared to $60,9 million for the same period in 2022.

This decrease is largely attributable to a reduced utilization rate, with three of its vessels operating in Brazil for part or all of the quarter.

In addition, costs related to the preparation of new contracts for vessels such as Safe Concordia and Safe Notos also contributed to the current performance.

Furthermore, the company, traditionally active in the North Sea market, faced demand challenges in 2023.

Commissioning work restrictions in Norway and increased maintenance and modification needs in the UK have impacted the utilization of its high specification semi-submersible vessels.

However, it is in the region of Brazil and the Gulf of Mexico that the company identifies a scenario of promising growth in demand for offshore vessels throughout the year.

Prosafe's expectations point to a moment of resumption of its growth after a brief moment of drop in profits.

Prosafe remains bullish on demand for offshore vessels in the market

Prosafe is taking an optimistic approach to the future, seeing a significant increase in bidding activity and contract awards forecast for 2024 and beyond.

This trend of increasing demand is supported by four new tenders by Petrobras in Brazil, as well as recent contract awards in several regions, such as the North Sea, Africa and Australia.

These acquisitions contribute to a greater limitation of supply in the sector.

Prosafe, confident of improving market conditions, is pinning its hopes on an increase in daily rates.

Recently, bids in Brazil showed a substantial increase in these tariffs, boosting the company's expectations.

In addition, the company foresees new tenders both in the North Sea of ​​the United Kingdom and in Brazil, for contracts starting in the years 2024 and 2025.

Prosafe interim CEO Reese McNeel expressed his optimistic view, stating: “We have seen substantially increased bidding activity in recent months across all regions for 2024 and beyond. With significant investments, a new management team and improved outlook, we expect better earnings, utilization and higher daily rates in the future.”

Thus, while facing internal challenges, the offshore vessel company remains optimistic in the face of volatility in demand in the market.

About Prosafe

Prosafe is a renowned leader in the offshore vessel industry, founded in 1997 and specializing in providing advanced solutions for the global market.

With a solid track record and extensive experience, Prosafe excels in providing high quality services, including high specification semi-submersible vessels, to support a wide range of activities in the offshore industry.