The combined value for all five rigs, inclusive of extensions to the present contracts, is approx. USD 300,000,000, which corresponds to NOK 2,100,000,000 (NOK 2,1 billion). As the rigs are being operated on bareboat charters, the contract value corresponds to gross cash flow from operations or to profit before depreciation (EBITDA).
The new long-term contracts for the respective rigs will have anticipated end dates as follows;
Safe Britannia - 02.10.2008
Safe Lancia - 16.10.2008
Safe Regency - 03.10.2008
Safe Hibernia - 12.05.2008
Jasminia - 15.02.2008
The contracts in Mexico, as customary, contain a termination clause which gives the ultimate customer the right to terminate a charter at 30 days notice if the Mexican authorities cancel the financing of the projects.
In connection with the contracts, the DP systems will be upgraded on Safe Lancia and Safe Regency, in addition to the upgrade of the cranes on Safe Britannia. It is anticipated that each of these three rigs therefore will be out of profitable operation for two to three months during the third quarter this year. The total investment is estimated to be approx. USD 20 mill. After these upgrades, and the upgrades that have recently been undertaken on MSV Regalia, Safe Caledonia and Safe Scandinavia, Prosafe will have a unique fleet of modern service rigs. Five of Prosafe's eight rigs will have a DP system, and the total capacity of beds is 4,500.
Since the start of 2003, Prosafe has won contracts within all business divisions for a total value of approx. NOK 6,4 billion, including options. Prosafe has secured a long-term cash flow within all its business divisions; Offshore Support Services; Floating Production and Drilling Services, and has thereby laid a solid and long-term foundation for further profitable development of its business.
Prosafe is the world's leading owner and operator of semi-submersible service rigs, the largest platform drilling contractor in Norway and a major owner and operator of floating production and storage vessels outside the North Sea. Operating revenues reached NOK 2,9 billion in 2002. The company employs approx. 1.800 people. Prosafe operates in the North Sea, SouthEast Asia, India, Egypt, West Africa and the Gulf of Mexico. The company is headquartered in Stavanger, Norway. Prosafe is listed on the Oslo Stock Exchange with ticker code PRS. For more information, please refer to www.prosafe.com.
Tananger, 30th April 2003