Hello and welcome, everyone, to this Q2 2026 results presentation for Prosafe. My name's Reese McNeel, and I'm the CEO, and have here have here with me our CFO, Halvdan.

I look forward to running through the presentation today. I will touch a bit on where we are, the key highlights, and the market, and then I'll hand it over to Halvdan to discuss a little further on our financial results for the quarter and half year.

Very shortly, kind of who a little reminder of who we are at Prosafe. Prosafe, we are a leading operator of accommodation units.

We have five accommodation units. We have three operating in Brazil, one operating in Australia, and we have one which has a contract for 2027 in the UK.

Uh we're headquartered here in Norway, but have a very large uh operational presence in Brazil and, of course, an operation today in Australia. Briefly on the key highlights for the quarter, I'd like to say first of all a huge thank you to our entire operation and all of our teams out there.

We had a very safe quarter uh and we had really high operational uptime. We completed the SPSs at the beginning of this quarter, but then coming on the back of the SPSs, the guys did a fantastic job getting the rigs back back operational and uh and we had really high uptime, close to 100% commercial uptime on all of the vessels um with the exception of that short period at the beginning where we're finishing these these SPSs.

A really good effort by everyone uh operationally to deliver what what I view is a very solid uh Q Q2 performance. Uh liquidity remains high.

We had a little bit of draw. Halvdan will come into that, but that was expected in the back of these SPSs.

Uh EBITDA for, close to $10 million for the quarter, and we have actually tightened our guidance looking ahead. Uh we had a guidance from $45 to $55.

We've tightened that guidance now from $50 to $55, and I'll touch a bit more on the market uh, which we view very positively as I as I run through these slides here. Where Where is the fleet and where are we currently busy?

I think one thing to highlight here is the Safe Notos. We are transitioning onto the new contract at a much higher day rate, we're going from from $75 to $140,000 a day.

Uh that should happen on Tuesday, the 1st of September, and I think everything's in line uh for that to move ahead. That will be a very positive uh looking a bit ahead.

Other vessels, safe and positive operations, and we'll talk a bit about that later, but, of course, there's a very key focus on Eurus and Zephyrus and securing additional backlog looking looking into the back half of '27. On the market, I think there hasn't been any fundamental changes to the fund, to to this market.

I think we this market remains dominated by everything to do with maintenance and operations. If we look in this market, where are people operating, where are people uh delivering a service, it is largely in this area and largely to floating units.

Uh there are some hook-up jobs. We're working on a hook-up job, obviously, in in uh Australia, but by and large, this market is driven by supporting FPSOs and older infrastructure for maintenance campaigns.

We we haven't seen a fundamental shift in this market structure, and I think that's remains very positive because we do see, globally, an increase in FPSOs uh and FPSOs are not getting any younger. I think the market fundamentals here remain very strong.

Uh again, just a very quick reminder, this is largely a market today driven by driven by Brazil. Uh most of the units are in Brazil.

We we we view a supply picture here of 31, I'll touch a little bit onto that, uh of which, almost half of these units are currently operating in Brazil or the South American region. Quick run-through on this.

I think this is a very positive slide along with the next couple is, one of the key takeaways of what's happening in the market today is that there's very, very limited availability in this market. Whether it's actually high-end or even the lower-end units, everybody is basically busy.

Uh a couple of units, our unit, for example, the Caledonia, yeah, she's warm stacked, but she does have a contract next year. Uh and so we see that this market is very tight.

Uh we have we've had dialogue with clients, and uh I'll touch a little bit on that in the next slides, but, one of the key drivers here is that clients actually are struggling to to find units to meet their their demands. This is leading to a what we see is one of the tightest markets in over a decade.

If you look at how utilization has gone, if we roll back from the back end of the last downturn where utilization was, 50%, we're now back, up to, if we look particularly the high-end units, from the previous slide, you're pushing again that 80% mark. Utilization is, again, uh continued to climb, and we think, and I'll touch a bit on that in the next slide in more detail, but, with several re- contracts rolling off in '27 and this tight market, we think there's a thi- this trend will will continue.

This is a key focus area for us. Again, I mentioned that Brazil is the biggest market here uh for for accommodation, and I think many of you who are who are watching our market will have seen there was a recent award to our competitor.

I think that is a, taking a unit from actually Australia, taking her to Brazil. I think that's a reiter- again reiterating how good this market is at the moment, that uh, there is demand not only from Petrobras, but there's demands from independent players here for for short-term pieces of work, or or even maybe medium-term pieces of work.

If we look at the likes of PRIO, MODEC, potentially the likes of SBM, BW Energy, um Karoon has used in the past, Equinor. I think there's a large pool of users of of of accommodation units in Brazil that's not only Petrobras.

Um and even looking at Petrobras, there's several units rolling off in the in '27 and '28, and to date, they have recontracted two. Our our clear expectation, and I think that's what we're seeing in the market concretely with this recent award, is that there will be a lot of con- recontracting activity, both from Petrobras and independents, in the coming months.

That is for us, a a key focus area, but also a key opportunity as, we are we do have, in Eurus, a a vessel rolling off an $86,000 day rate uh, and the market day rates uh as we as we look on the next slide, the market day rates have been going, trending, up towards the 140-plus mark. I think there's a there's a key opportunity here for us to capture that increase uh in in day rates.

Also, outside of Brazil, this market, like I said, half of it's in Brazil, but that means half is outside of Brazil. We have seen also there positive activity, and particularly with the market tight, um I think we will continue to see positive activity in other markets as well.

Uh particularly West Africa or Africa in general has been very active with awards, in Nigeria, Angola. Uh you've also seen vessels working in in Libya.

You've seen vessels working in the Black Sea as well. I think the market has a little bit more depth than only Brazil, but Brazil is, of course, a key driver to this market when you have half of your half of the fleet globally working there.

Uh again, and and I think this is just reiterating the same thing, that we have seen the day rate trends and we've seen an alignment, between day rates, again, higher day rates outside of Brazil. When I when I mentioned Brazil, 140, 150, and a positive trend, globally.

They've been a bit higher, but if with the contract term tends to be lower, but we've seen a convergence of day rates over the last uh period. I think all in all, I think, very positive on the market.

We have a very key focus on recontracting these two the two units rolling off in '27, but I think, the market's very, very tight and we actually do see uh recon- active recontracting activity and opportunities. I think over the coming uh the coming months, I think we will see this coming to fruition in a clear expectation that this will drive further earnings growth as the rates uh tick up.

Going back a little bit to operations, uh we talked about this on the last earnings call, but, from my perspective, an excellent result again by the team on these SPSs. It was on time, it was on budget despite many challenges faced uh, conducting these offshore in in, or or in a offshore environment there in Brazil, finding a location, getting all the work uh complete.

I think it was a an excellent result, and again, on time, on budget. I think, the utilization, as we we show here, with those behind us, uh we will see utilization uh increasing.

Caledonia, of course, she's she will she will be working next next summer. Uh backlog, not going to dwell too much on this.

Obviously, focus area for us, as I mentioned, Eurus and Zephyrus, but, if if I look at Boreas, Boreas is has been doing fantastic. Uh we do have six months of options for Boreas in the back half of '27.

Those are callable 90 days ahead of the option. Um so I think, so far, work going well.

She's operating well and delivering well for the client, and, we have to see how those options pan out. We're we're positively optimistic on Boreas, and I think a key focus for us on Boreas is trying to continue to have her working in Australia.

Um there was three units working in Australia um not too long ago, and it looks like it's going to be only one unit working there, uh our unit, so, again, knock on wood, uh that that should give us a good opportunity here looking, '27 and beyond. Uh Caledonia, '27, '28, we got work in '27.

She's got some options on the back of that. Uh UK, um I think there will be work going forward in '28 and beyond.

Um uh so so I'm optimistic there that we can also find her some follow-on uh some follow-on work in 20 uh 2028, so. Uh with that, I think I'll hand it over to Halvdan to to run through a bit on the financials, and then I'll jump back at the very end.

Halvdan, over to you.

Thank you, Reese, and good morning. Uh Uh given kind of the stability of operations in the last quarter, there should be no real surprises on the financial side.

Uh EBITDA tripled year-over-year, of course, uh slightly lower than Q1 due to Caledonia not working and the SPS days for the Zephyrus and the Notos. Uh as we look towards the third and fourth quarter, we expect this to normalize uh with uh with uh the whole fleet working and, of course, the improved day rate uh from the new Notos contract.

On the income statement, uh most importantly, we continue to be on track for the SG&A target of $19 million. In addition to this, the company has a strong focus uh on both keeping costs low and lowering them even further.

Expect this work to continue. Uh net loss of $6.1 million compared to a net loss of $23.9 million in Q2 2025.

On the cash flow side, um we had a large uh working capital inflow uh throughout Q1. As we said uh on the last call, we expected part of that flow out given the timing of the um SPS payments.

You will see here uh $15 million related to SPS and a $22 million negative swing. As we look forward on this, uh given the SPSs are now firmly behind us, uh we expect this to e- even out uh and normalize with uh not as many swings going forward.

Cash position of 52.3 uh puts us in a comfortable position, again, with the SPSs behind us and now going into stable operations. Touched on liquidity position, uh NIBD and NIBD to last 12 months EBITDA, uh a slight increase due to the cash drawdown on the quarter.

We have repaid some debt. I'll get onto that on the next slide, and, of course, equity ratio uh on 27%.

On the capital structure, we repaid uh $1.75 million as part of the Eurus facility in the quarter uh, reflected here on the right in 2026. Uh we continue to pay PIK interest on the senior facility uh, reflected in a $1 million increase in the light blue here.

Uh would like to remind everybody that there is the possibility to extend all the facilities to latest 31st of December 2029, given an extension on the Eurus facility. Uh while largely dependent on the recontracting going forward, uh the company, of course, continues to look at alternatives to optimize the capital structure to further provide value to all stakeholders.

Moving on to summary and outlook, we maintain our mark-to-market EBITDA potential of $90 to $100 million. We have seen uh long-term contracts both above and below the reflected level of 140.

Uh we continue to see this as uh very realistic. It would of 75% with a reduction of net debt to EBITDA down towards a 2.5 uh level.

Of course, deleveraging, uh as we've said before, is a high priority for the uh the company, and we continuously explore ways to uh uh lower this figure. Moving on to newbuilds and trading values, we are now trading kind of in the middle of our broker values.

Uh compared to what we see as replacement cost and expected newbuild cost for these vessels, we still see, given our current fleet has the potential to produce $100 million in EBITDA, we see this as highly unlikely at 12.5 times uh EV to EBITDA. Then not including kind of going-forward capex, I think you would need to see a substantial uplift in the current market to justify any new vessels coming in here.

With that, I think I'll hand it over to Reese for the closing comments and the outlook.

Yeah. Thank you very much, Halvdan.

Touching a bit on some closing comments, and I've seen some questions that have come in as well as uh as we've been going through this. I think, again, lifting our guidance to $50 to $55.

I think one of the questions I saw here coming in was, what is the key driver behind that? I think a key driver is that we have successfully completed the SPSs on time and on budget, and I think we also see that, things have gone very well on Boreas, and we and we see that, we're very well positioned to get on contract with uh the the with the Notos on time.

I think that's drifting us towards the uh the upper end of that original guidance. Again, by and large driven from the operational efficiency and and how the team has delivered.

We we continue to focus on our cost base. I think we have guided $19 million on EBITDA.

I think we're going to hit that uh uh sorry, not EBITDA, not EBITDA, $19 million on SG&A for the year. I think that is uh, we started out the year about almost pushing 22, and I think we'll we'll easily hit that 19.

Then, we're also really focused on keeping the the operational costs in check. I think these measures together are pushing us into that uh upper range.

I think we're very well positioned to capture this improving market. Um I know a lot of questions out there from people.

There was two high-spec, there was two low-spec tenders uh from Petrobras. I think we did not participate in those two tenders.

They were very much focused on the lower spec. I think what's key to note there, though, is that, there was still a nice day rate increase on those vessels from where they were to where they have landed.

Our full expectation is that there will be a need, a continued need, for high-end vessels, and there are, frankly, not many low-end vessels available in the market. I think we will we will see uh a drive here from Petrobras and for others to to seek higher-end vessels.

I think we just saw that with the award to our competitor as well. That gives us strong confidence that, there will be recontracting uh from Petrobras or the likes in the coming uh in the coming months.

Uh questions I think about demand, overall demand. How do we see demand, going further?

Will there be an increase in the number of FPSOs? Uh with the increase in FPSOs, do we see an increase in in in UMSs?

I think we have seen an increase already. If if I go back a couple of years, our our we we were talking at one point about 26 vessels in this market and then 28 vessels.

Now we're kind of at 31 vessels. I think we have seen an increase.

Again, all of those have been absorbed into the market. I'm optimistic.

I think, as as people say, there are new, more FPSOs coming into this market. In addition to that, players are actually slower in taking out older FPSOs and you see that there's actually more maintenance activity there.

I'm optimistic about it, but I'm not going to going to set an exact timeline of when we will see uh when we will see that, kind of coming to fruition. Uh but I do think we'll see an an increasing demand picture, going forward, a bit further out.

I think in the near term, this tight demand will keep will keep rate levels uh decent. Um let me uh I'll just take 1 second here.

I think that wraps up the presentation, but I will come back and see if there's some questions that have come in. I think most of the questions which I see here relate very much to uh the recontracting picture and the timeline and how it's going to look, and whether it's Petrobras or not Petrobras, or number of opportunities, or And I think all I can say there is, again, there's many opportunities in Brazil uh from I I think I listed many of these players who have either historically been using or are are are actually Many of them are actually actively looking to use, whether it was, your PRIOs, your MODECs, your Equinors, your Karoons, your um I think I think, BWs.

I think these are people who've been users uh in the past, and I think some of them do have, concrete demands coming forward. Again, we do think that Petrobras will need these units going forward.

Uh but I don't want to speculate on this call exactly what the timing will be or how they're going to structure it or anything like that. Uh so I'm not going to speculate on that.

Um Let's see here if there's any other questions. Then, what what's the timeline for this?

I I think the best estimate of the timeline is that, we we think it's we think it's, it can be weeks to months. I know it's not particularly concrete, but I think we have seen now recently, stuff started to they've done two, now we see you know the the flotel unit.

I think we're our expectation is that in the coming months, we will see uh more contracting activity. Historically, we have seen everything from Petrobras or others being out there a year or more in advance to actually relatively short timeframe on on on some of these units, particularly when when people were looking at, extensions, or and particularly some of the more independent players in the market tend to have, shorter time spans between, issuing a tender and and getting something on hire.

I think, yeah, I'm I'm not going to speculate uh too much, but I think, yeah, it is sort of in that weeks-to-months category. Uh but the market is very solid.

Uh again, very little demand and uh uh sorry, very little supply and a lot of demand pushing uh, and people actually actively not being able to get units. We had a, we we we were I was with some clients Just to give a color, a little story.

I was with some potential clients back in the summer, and, some of them came and said, 'Well, Reese, actually, we need a unit now. We we Don't you have something now?

Don't you have something for the fall?' We were, we we sort of pulled up that slide and said, 'Well, there's actually nothing, nothing really available.'

They said, 'Well, but, we don't We We've tried other solutions, but it's been very ineffective and very costly, and we've really struggled. We really want a unit.'

We sort of said, 'You know, guys, you have need to start planning further ahead uh because you know that this market is much tighter than you think. If you really do need a high-end unit or really do need a specific UMS with a gangway, a passive gangway, y- you you need to be into the market earlier.'

Um so I I think, there's a realization there from clients that they need to do that. I I think we were we are going to see um, more activity in this market, so.

Uh one last check. Oh, I think that was it from the questions.

With that, I would like to thank everyone who joined the call and look forward to speaking to you at the next quarter. Thank you very much.

Thank you.