Prosafe’s Fight for Survival: Debt, Deals, and a Dash of Hope
The Offshore Accommodation Giant’s Rocky Road to Stability
Prosafe’s Q1 2025 earnings report reads like a thriller: revenue dipped to $33 million (from $34 million in Q1 2024), EBITDA halved to $4.6 million, and just four vessels remained active. Yet beneath the grim headlines, the offshore accommodation specialist is stitching together a fragile comeback—one contract, one vessel sale, and one brutal recapitalization at a time.
“This isn’t just about survival—it’s about resetting the chessboard,” says an industry analyst tracking Prosafe’s restructuring. “The Petrobras deal and debt-for-equity swap are lifelines, but execution is everything.”
The Petrobras tender for the Safe Notos—a four-year, ~$204 million gig in Brazil—anchors near-term optimism, though the contract remains unsigned. Meanwhile, Prosafe’s shareholder-approved recapitalization on May 16, 2025, will convert $193 million of debt into 90% equity, slashing net debt to $220 million post-Q3 2025. It’s a Hail Mary to avoid bankruptcy, but the math is unforgiving: creditors now own the company.
Vessel Shuffle: Selling, Sailing, and Securing Work
Prosafe’s fleet strategy mirrors its financial triage. Two vessels—Safe Concordia (sold March 13, 2025) and Safe Scandinavia (mid-May 2025)—were cashed in, while others pivot toward new contracts. The Safe Boreas is steaming toward Singapore for an Australia job (start window: Nov 2025–Feb 2026), and Safe Caledonia mobilizes to the UK by June 1, 2025. Meanwhile, three Petrobras-contracted vessels achieved 99% utilization, with Safe Zephyrus extended to Q3 2027 and Safe Eurus locked in until Q1 2027.
But the real prize is Safe Notos: if finalized, its four-year Petrobras contract could generate $51 million annually—a revenue floor Prosafe desperately needs. “The Brazil deal is their oxygen mask,” notes a rig market insider. “Without it, even recapitalization might not be enough.”
“Prosafe’s playing musical chairs with its fleet,” quips a shipping financier. “The music stops when the debt does.”
For now, Prosafe insists the recapitalization ensures liquidity and a “sustainable capital structure.” Skeptics point to the 90% equity wipeout and $220 million residual debt. Yet with tenders pending in Australia and the UK, and Petrobras vessels humming, the company might—just might—live to see calmer seas.
