Prosafe SE: Riding the Wave of Brazil's Accommodation Boom

Prosafe SE, a leading owner and operator of semi-submersible accommodation vessels, has reported a strong fourth quarter of 2024, with EBITDA of USD 4.9 million, a significant improvement from the negative USD 2.7 million reported in the corresponding period last year. The company's strategic focus on the Brazilian market and its position as a market leader in the region have driven this impressive financial performance and growth prospects.

The Brazilian market has been strengthening, with new tenders for up to 6 units and increased activity from Petrobras. This growing demand has led to improved market fundamentals, which support Prosafe's expectations of future earnings growth. The company's strong commercial performance in Brazil has resulted in a 44% increase in backlog from the prior year, reaching USD 370 million. This increased backlog provides a solid foundation for future earnings growth and a sustainable capital structure.

Prosafe's high operational efficiency, coupled with the improved market fundamentals and increased backlog, further supports its expectations of future earnings growth. The company's market leadership in Brazil positions it well to benefit from the new long-term Petrobras tenders, which may absorb further capacity from outside Brazil on top of units already in the country.



Prosafe's improved financial performance and growth prospects have created a platform to strengthen liquidity and achieve a sustainable capital structure. The company expects to complete its refinancing in H1 2025, likely including an equity component. This strategic focus on the Brazilian market and Prosafe's position as a market leader in the region have positively impacted its overall financial performance and growth prospects.

In conclusion, Prosafe SE's strategic focus on the Brazilian market and its position as a market leader in the region have significantly contributed to its overall financial performance and growth prospects. The company's strong commercial performance, high operational efficiency, and improved market fundamentals support its expectations of future earnings growth and provide a robust foundation for establishing a sustainable capital structure prior to the 2025 maturity. As the Brazilian market continues to strengthen, Prosafe SE is well-positioned to capitalize on the growing demand for accommodation vessels and maintain its market leadership.