Hello, and welcome everyone to this Q1 presentation for Prosafe. I'm Reese McNeel, I'm the CEO, and I have also here with me today Halvdan, our CFO, and welcome again to the presentation.

We're going to run through the presentation. If there's questions, please send them to us by email, and we'll pick that up at a Q&A session at the end of this presentation.

I'd like to start off the presentation for this quarter talking a little bit about what we've got done this quarter. I've been very impressed by how the team has delivered this quarter.

First touching briefly on the operations, it was a quarter where we had all of the rigs operating. Caledonia, she extended through, got all of her options and successfully demobilized, and we also got Boreas, fully on hire during the quarter, and we saw two units do the SPS.

I'll talk a little bit about all this later, but I think from an operations perspective, it was a very successful quarter for us. I think also financially, Halvdan will talk a bit more on that, but I think you see a very strong quarter driven largely by the utilization, of course, of having all the rigs working, and I think we'll touch a little bit on liquidity, but I think also very positive liquidity liquidity development, although, inevitably some due to working cap.

If we look ahead, maybe what's exciting me most is really the market outlook. I'll spend most of my time today me talking talking a bit about that market.

Some really positive developments there, and I think we are reiterating in this call also our guidance for the year at $45 to $55 million of of EBITDA. To talk a little bit about the you know what what was maybe one of the most strategically important activities of this you know that started in this Q1 and we finished up in April was really the SPSs.

We got the SPS done for Notos in 55 days, for Zephyrus in 42 days, and I think we actually delivered these SPSs in line with our estimates. Very important for us, this is a significant amount of spend.

We're talking about $50 million combined between two vessels over a period, and I'm very excited and very happy to see that the team delivered on this both safely and also in line with the estimates that we that we communicated to the market. It was really a congratulations to to everyone from the Prosafe side who was involved in these two very important projects.

Looking a little bit at where we are you know as a company in our fleet, this is sort of where we are in the fleet overview and and and where things are stacked up at the moment. We did secure a contract for Caledonia in 2027.

That LOI was announced late last year, but I think the conversion of that LOI was a very important step for us. Notos we secured obviously the contract to 2030 last year.

For Boreas, she has now started her firm contract period of 15 months, she has a firm contract now to mid-July or to July next year, early July next year, with options to take her to the end. Our real focus in the coming months is very much about Eurus and Zephyrus and extending those two units or re-contracting those two units in what is a much much more improved environment.

I think on I will mention though on Caledonia, I do think there's a positive market development, touched on that, but I think in the UK, where which is her core market, I do think we see a positive some positive opportunities there. We are very focused on trying to to get Cali work, in beyond '27.

I think she's available in '26, but I think it would have to be more of an exceptional opportunity in '26, but I think particularly looking ahead at what we see '28 and beyond, I think there's high probabilities there of you know of of filling something in in the in the next months. Looking a bit at the market, again, just reiterating, summarizing to people you know where are we in the cycle, again, Prosafe's very much late, is is very much maintenance cycle driven later in the cycle.

We do do some hookup work. The work in in in Australia is is is hookup nature, but the majority of our work is driven from the the maintenance of FPSOs and installed installations, and FPSOs in in particular.

I think we are a little bit, buffeted by the the sort of short-term ups and downs of the oil market with us focusing really on maintenance of of long-term installations. What's happened in the market the last the last quarter, the last few months?

The market from our perspective, again, we we see the market as those units which we see competing against us in tenders at different points in time. I'll talk a little bit about the market in more detail in the next slides, but I think the message from this slide is the market's remained quite steady, and the Brazil market or the South American market, Brazil plus Guyana, remains by far the largest market, with 15 units or approximately half of this total global fleet.

If you look at it, Brazil is really the baseload for this this entire, rather niche accommodation market. How do How do I look at the market is a question I often get from people.

There's 31 rigs, they're not all the same. We have a chunk of high-end rigs, this is where Prosafe very much is.

We have some of the best, most capable rigs in the market with the highest uptime, best safety performance. Then if you look in that 31, there is some lower-end or lower-spec rigs that are not DP3, maybe DP2, also have capability to be accommodation rigs, but don't quite have the utilization and capabilities that our high-end rigs have.

Looking across this and and I'll touch on that in the next couple in the next slide in particular, if you look across that that breakdown of all the rigs, there's very little inactivity. People have contracts, people are working, you see that the utilization across this this broader fleet of 91 vessels remains still at 90% you know 90% for the high-end units and still remains, 80%-plus for all the units across the spectrum.

The market remains very tight in this space. Brazil, as I mentioned, the largest driver to this market, half of the you know virtually half of all accommodation units available in the world are working in Brazil.

What is driving, again, the the need for accommodation in Brazil is very it's a combination of FPSO installed base and the climate and the conditions in Brazil. You see a lot of corrosion.

You need You we see clients actively using accommodation vessels, UMSs, to support the repair and maintenance of these FPSOs, and we see an increasing number of FPSOs in this market. One thing that has got me a little bit excited, again, the last few quarters or last few months has been what we see is an increasing trend in Brazil, I would say of using accommodation earlier than in the past.

Historically, we saw people using accommodation, particularly Petrobras, 2 or 3 years after a unit was installed, kind of a main a maintenance campaign, 6 months here, 6 months there. We've now seen them increasingly using, not only Petrobras, but also others, if you look at the the the Bacalhau project for Equinor, increasingly using some accommodation support even in the hookup phase of the project.

I think if that trend continues, we will, I think I think we may even see more demand in Brazil than some of the projections that we put out here. We have also seen ANP, the regulator in Brazil, being more stringent upon the regulations, warning people about shutting down if they do not carry out all their their corrective maintenances, which is required, and I think that has actually spurred, some some additional demand, particularly from some of the lower, maybe not the Petrobrases of this world, but some of the more independent players.

I'm very positive about the demand. I think we'll continue to see in you know increasing and strong demand from from Brazil.

Spend a bit more time on this slide, because I think as many of you know and many of you who follow us and follow this space, there is a lot going on tendering at the moment. There was a recent tender out from Brazil, quite public that tender.

Our take on that tender is that was a lower-spec tender. That was a tender that was out, it was open to DP2 vessels, it was open to any kind of hull form or shape.

Obviously, from my perspective, very positive to see Petrobras out with such a long-term, good tender. I think also very positive to see the rate development there.

Still a very strong rate for what we believe is sort of a a lower-spec unit, of course. In the next year, there's going to be or up until the end of 2027, there's actually six units which need to be re-contracted with Petrobras.

Our belief is that they will re-contract. If you take into account this latest tender, there's still five units that need to be re-contracted by Petrobras alone, and in addition, we've seen one of the larger independent FPSO players out with a 2-year tender, and we also see some of the independents out with smaller requirements.

I think this is playing out very much as we've been discussing, which is we're seeing Petrobras active in the market, we're seeing some independents active in the market as these contracts roll forward, and we are very well positioned here with the Eurus and the Zephyrus coming off at the same in that same time period as these other five. I think that's a really key focus area for us is is re-contracting those two with, of course, a very much a focus on Brazil, where we are very present, but I will say, we're open-minded to whatever other work comes out there at the right price, of course, but our main focus is re-contracting these into what we see is a very positive Brazilian market.

I touched a little bit already on the UK and on Caledonia. I think that's a little bit special, but I do think there'll be opportunities there, and I do we do see continued activity as well in other markets.

There's recent work awarded in Turkey, there's been recent work awarded in Angola, and I think there is more work coming as well in West Africa. From my perspective, I see the market remaining very tight, a lot of tendering activity coming up in the coming, I would say, 3 to 6 months, and we are very well positioned with a couple of rigs here, I think, to capture that increased market potential.

Jumping back a little bit to operations, I think, again, very positive quarter, safe operations, that's super important to me, no in- no no LTIs, no significant injuries or incidents to report in the quarter, despite a lot of activity operationally with the Caledonia coming off contract, going to warm layup in in Scapa Flow in the UK, and these two SPSs. Again, big kudos for the team for for, performing well in this past quarter.

Looking a little bit at our backlog, as I mentioned, very key focus for us in the next few months. I think backlog remains very high.

Backlog remains we got to go back, many years to see this backlog position for Prosafe, but I think my key focus and the team's, the team's focus for the coming few months is very much focused on extending and building out this backlog even further, and I think we got a very positive backdrop in the market. With that, I will hand it over briefly to Halvdan to talk a little bit about the financials.

Thank you, Reese, and good morning. Q1 2026, revenue up almost 50% year-over-year from Q1 '25.

At the same time, EBITDA has tripled. This is largely as a result of higher margin contracts related to the Safe Boreas and the options for Safe Caledonia.

Of course, this was also negatively affected by some off-hire days for Safe Notos and Safe Zephyrus in relation to the SPSs for March. We also expect to see the same thing in April as these were both completed during that month.

Moving on to the income statement, very little surprises here. Net loss of $1 million compared to net loss of $50 million year-over-year.

Company is still on track to achieving the annual SG&A figure of $19 million. On the interest side, the company continues to elect to pay PIK interest on the senior facility, the full figure here does not actually reflect the cash outflow, which we will get to on the next slide here.

On the cash side, the main items to highlight here are, of course, the capex and the net working capital shifts. On the capex side, we have had two vessels undergoing SPSs for March and April, the costs have continued into the next month.

For Q4 2025, we had a significant net working capital outflow, much of which was specifically related to the start-up of Safe Boreas's contract in Australia. As we mentioned on the last call, we did expect most of this to flow back during Q1, which is a bit what you're seeing here, and of course, the positive figure is also helped by the timing of the accounts payable in relation to the capex outflow.

At the end of the quarter, the company had around $87 million on balance, very comfortable level above the $20 million debt covenant, and as we begin to draw on this to pay down the SPSs, we expect to stay well above that covenant. Here, highlighting the strength of our balance sheet versus where we have been historically.

NIBD to EBITDA down to 4x. We do, of course, expect to see a little shift in the opposite direction as we pay down these SPSs.

Deleveraging continues to be a priority from the company's perspective, along with getting to and maintaining a robust capital structure for the future. On the capital structure side, total debt at quarter end was at $305 million, including the $5 million exit fee, which is not interest-bearing.

We continue to amortize down the Eurus sellers' credit, while simultaneously the senior facility has increased on the quarter due to continuing to utilize the PIK option. Moving on to summary and outlook, the company continues to focus on re-contracting opportunities to achieve the mark-to-market EBITDA shown here.

As Reese mentioned, we have two vessels coming up for re-contracting in 2027 in Brazil, which should enable us to close the gap from the 4.2 you're seeing here to closer to the 2.2 potential. To finish up, as we always do, we highlight that we are trading at a significant discount to current broker valuations and replacement costs.

Our rigs are best-in-class, high-spec units which were expensive to build back in the day, even without factoring in inflation since then. We do believe that there will continue to be strong demand for these units going forward, and as such, we expect to improve hopefully both our mark-to-market EBITDA potential and our trading values compared to both broker values and replacement costs.

Now, handing it back to Reese for closing statements on outlook and guidance.

Thank you very much, Halvdan. As I mentioned at the beginning of the call, we're reiterating our guidance for the year at $45 to $55 million EBITDA.

Continue to see, I think, an improved EBITDA contribution from Safe Notos. She's going to go onto her new contract at a significantly higher day rate from September, I think that will give us a little bit of boost looking at the back half of the year, and Safe Boreas, of course, on hire during the remaining full year of '26.

Reiterating again our guidance. I think balance sheet and liquidity, as Halvdan said, I think we're in a comfortable position, particularly if we look back where we have been from.

I think we have achieved quite a lot in the last couple of quarters, keeping these SPSs in check. I think we've managed to improve the working capital situation significantly, and obviously, the re-contracting of Caledonia has also been very positive for us to sort of secure that extra backlog.

I think our strategic focus in the coming few months here is very much around capturing the current state of the market and rolling over the Eurus and the Zephyrus onto improved contracts going forward in the market. With that said, there's a few questions that have come through to me, which we'll do our best here to answer.

One of the questions related actually to the latest tender with Petrobras, and it was a rather direct question, did we participate in that tender? The answer is no, we did not.

Neither ourselves nor Floatel participated in this tender. I think my position is very much that this tender was very much guided towards the lower-spec units that are available in Brazil, whether it's, just to name a couple, the Venus or the Olympia or a few these other vessels.

Our view was that this one was not necessarily for us and that there will be more contracting opportunities to come, as I mentioned, with six units to be re-contracted. This is number one.

Our view was that was better for us to be a bit calm here and see how this market develops, rather than taking what looked to be a lower-spec contracting opportunity from the get-go. I think the next question was linked to the newbuilds.

Briefly on the newbuilds, yep, they're still there. I think we're still very keen to do something with these two newbuilds.

I think we're still very much in the position that we believe that the market needs to continue to improve before we see a clear opportunity to deliver these vessels. First and foremost, we have very much a focus on re-contracting what we currently have, and if the market continues to develop like it is, I think there will be opportunities for these newbuilds in the future.

Just check quickly a couple more questions that have come in here. There's a question regarding would we consider moving one of our vessels outside of the Petrobras fleet?

I think my answer to that, I think as I've mentioned before, the market continues to develop positively across the globe. If there is an opportunity with someone either in Brazil outside of Petrobras or, in fact, outside of Brazil at the right price and at the right terms, of course, we would consider that.

These vessels are Brazil compliant, they've worked with Petrobras for a long period of time, that's all great, but at the end of the day in a tight market, we are very much focused on securing the rates and rate structure that makes the most sense for us and for the company. How do we see day rate momentum developing internationally outside of Petrobras and the North Sea?

Again, I think we continue to see quite positive rates. I think we saw a $200,000 rate outside of Brazil, $200,000 a day rate recently, albeit for a shorter-term contract, talking sort of 6 6-month-plus contract, but I do think we see the day rates holding up both internationally and in the North Sea.

I think that again is just a backdrop of the fact that the supply is quite limited, and we have actually seen cases recently where clients have wanted a unit, but there simply hasn't been any units available. I think that is keeping the rate levels high.

Current status in Nova Vega, yeah, what is the timeline to take these units out of the yard? A bit similar.

I think we are still very keen to do something with these two vessels and to get them working. How long that will take or what flexibility we have with COSCO, there's an ongoing dialogue with COSCO about that, and I think we're going to keep continuing this dialogue with them and see if we can find a way to unlock this.

I do think that they will come to the market eventually, and again, they are one of the last two custom-built accommodation units that are out there in the market, but we do need to see rates improve or come to a more favorable structure that allows these vessels to get out into the current market situation. See if there's any other questions that have come in here.

I think that was all the questions that I had received. With that, I would like to thank everyone for joining, and we will talk to you again the next quarter.

Thank you very much.