Prosafe NOW

No 2 • 2010
VISION
Prosafe shall be a leading and
innovative provider of technology
and services in selected niches of
the global oil and gas industry.
Accommodating the
Offshore Industry
MISSION
By providing our clients with innovative and
cost-efficient solutions, Prosafe shall maximise shareholder value and create a challenging and motivating workplace.
thereby increasing the total
amount of dividend paid in 2010
to USD 0.285 per share, which
equals 50 per cent payout based
on net profit in 2009.
CORE VALUES
Profitability
Respect
InnOvation
Safety
Ambition
Focus
Environment
Looking back upon the year 2010,
I can proudly say that we have
once again delivered excellent
results. Operations have been
solid, we have continued to
improve our safety results, order
intake has been good and the
quarterly financial results have
been strong. These achievements
are the result of good contracts,
a quality rig fleet, and last, but
not least, hard work and good
performance by our employees.
Thank you all for that!
Prosafe NOW is published two
times a year for our employees, clients,
vendors and other key audiences.
Submit ideas, comments and
articles for the next issue to:
Karine Cosemans
Communication and branding manager
[email protected]
EDITOR
Karine Cosemans
Photo page 2, 13, 15, 16: Kjetil Alsvik
Photo page 8, 28: iStockphoto
Photo page 10, 11, 27: Ken Taylor
Photo page 18, 19:
Ruben Hamahiga dela Cruz
PRODUCTION
Printers AS
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www.prosafe.com
RESPONSIBLE PUBLISHER
Prosafe SE
Stadiou Street 126
CY-6020 Larnaca, Cyprus
Phone: +357 2462 2450
Fax +357 2462 2480
[email protected]
Dear all,
In October, I became Chief Executive Officer of Prosafe. I started
working in Prosafe in 2002, and
throughout the years I have seen
Prosafe evolve from a Norwegian
company engaged in drilling,
floating production and accommodation, to a focused, international company that is the leading
supplier in the market for semisubmersible accommodation rigs.
I am honoured to have been given
the responsibility to lead this great
company and am looking forward
to work together with all our
co-workers in order to contribute
to the company’s future success
and growth.
We presented the financial result
for the third quarter of 2010 in
the beginning of November.
Operating profit amounted to USD
83 million, which is the best ever
quarterly result, and net profit
amounted to USD 72 million.
We also distributed an interim
dividend of USD 0.095 per share,
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After the financial crisis in 2007,
we experienced a period with
relatively few contract awards.
Since the summer, we have seen
that the market has restarted
again. This has been confirmed
by several contract awards in the
second half of the year. We won
a two and a half year contract for
Safe Lancia in Mexico, a ninemonth contract for Safe Caledonia
in the UK North Sea, a contract
extension for Jasminia in Mexico,
and last but not least, a three-year
contract for Safe Concordia in
Brazil.
The Brazil contract for the
provision of the Safe Concordia
semi-submersible rig for safety and
maintenance support to Petrobras
is a major milestone for Prosafe,
giving us foothold in a new
geographical area. I know that
many of our employees have
worked hard and have spent a lot
of time and effort in order to win
this contract award, and would
like to thank each and every single
one of them for their perseverance
and diligence.
Operation in Brazil is planned to
commence early in the second
quarter of 2011, and we have
already started preparations in
order to be ready to provide
Petrobras with a safe and first-class
rig solution at that point in time.
The general outlook for
accommodation services is positive,
also in the longer term. Within the
harsh and semi-harsh offshore
environments where most of our
rigs operate, there is a good supplydemand balance.
We expect a good long-term
demand for semi-submersible
accommodation rigs with stable
activity in the North Sea and
Mexico. In addition, we foresee
that deepwater regions such as
Brazil will be growing markets for
safety and maintenance support
services.
Our Annual Safety Day was held on
21 October. I really enjoyed listening
to the presentations, participating
in the workshop and having the
opportunity to meet our employees
and some of our customers. By
coming together and sharing best
practices, improvement initiatives
and lessons learnt, we will be able
to continuously improve our knowledge, enhance our focus and thereby further improve our safety results.
for outstanding moral onboard.
They have been good ambassadors
for Prosafe internally and externally.
Congratulations!
I want to emphasize that we are not
merely interested in improving our
statistics. Our main objective is to
ensure that all personnel leave the
rig or their workplace in the same
healthy condition as when they
arrived.
We have also this year decided that
we will not send Season’s Greetings
cards to our business relations, but
rather give a donation to SOS
Children’s Villages. We believe that
ensuring that children are given a
home, care and education is the
most valuable aid we can give.
The Ambassador Prize is an annual
award to employees who have
promoted the core values in an
excellent way. This year, the prize
was presented to the Safe Caledonia
crew for raising the standards
onboard the vessel throughout a
successful contract with Total and
Our internal slogan competition has
been a success. “Accommodating
the Offshore Industry”, submitted
by Neil Roberts, Storekeeper on Safe
Caledonia, was selected as the
slogan we will use in future. More
about this later in the magazine.
Greetings of the season, and my
best wishes for a Safe, Prosperous
and Happy New Year!
Karl Ronny Klungtvedt
Chief Executive Officer
Slogan competition
End of September, we invited all employees to submit proposals for a Prosafe
Slogan to be used internally and externally to create a stronger company identity.
By Karine Cosemans,
Communication and Branding
Manager
We received a total of 212 entries,
and were impressed by the variety
of entries and by the creativity of
our co-workers.
Amongst the many very good
suggestions, we picked the
following winner:
“Accommodating the
Offshore Industry”
This proposal was submitted by
Neil Roberts, Storekeeper on
Safe Caledonia. His effort will be
rewarded with a gift voucher.
“Accommodating the Offshore
Industry” was chosen because it
illustrates that Prosafe wants to be
accommodating. As a company, we
want to be humble and serviceminded towards our clients. We
want to help them to overcome
their current challenges and improve
the performance of their business.
It also refers to the ambition of
wanting to adapt to meet future
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demand and new operational
challenges that our clients are faced
with.
Another important reason for
selecting this slogan is that it
describes what kind of services we
offer. It may help people seeing the
Prosafe name and slogan for the
first time to understand what we do.
Thanks to all for your effort, and
thanks to Neil Roberts for his
excellent contribution! You can be
sure that you will be seeing this
slogan in many different places in
future.
Heading for Brazil
On 19 October 2010, we could announce that we had been awarded
a Letter of Intent by Petrobras for the provision of the Safe Concordia
semi-submersible rig for safety and maintenance support offshore Brazil.
The firm period of the contract
linked to the Letter of Intent is
three years and the total contract
value is about USD 157 million.
The award of this contract is a
major milestone for Prosafe, giving
us foothold in a new geographical
area. We foresee a growing
demand for safety and maintenance support services in Brazil in
the future, and expect that Brazil
over time will become an important
market for us.
Operation in Brazil is planned to
commence in the second quarter of
2011, and we have already started
preparations in order to be ready to
provide Petrobras with a safe and
first-class rig solution at that point
in time.
You can read more about some of
our preparations and about the
positive market outlook for Brazil
in the following articles.
Vamos para o Brasil!
The above translates as “Let’s go to Brazil”. It has been a long process
extending over a couple of years, but finally we have secured a three-year
contract with Petrobras which takes us to Brazil.
By Robin Laird,
Managing
Director
Prosafe
Offshore
Pte Ltd
This is another milestone in Prosafe’s
history, and we have been rewarded
for our patience and perseverance.
Our successful bid was spearheaded
by Charles Day, Director of Business
Development and Marketing and Ryan
Stewart, Commercial Director, and
thanks goes to them for their tenacity
and diligence throughout the process.
This contract will be another step
change for us – a new client, a new
market and new challenges
associated with setting up in a new
country. We will be working
alongside fixed platforms, semis
and FPSOs in the Campos Basin.
Brazil is a growing market for
offshore support services, which
for us will compliment well the
established markets of the North Sea
and Gulf of Mexico, so this really is
an exciting development for us and
one where there is a high probability
that we will have a long-term
operating presence in Brazil.
This contract requires that we
have a team based in Brazil. To this
end we have recently appointed
Américo Santos as our Country
Manager in Brazil. Based in our
Rio de Janeiro office, Américo
will be responsible for the overall
service delivery of our contract with
Petrobras and he will head up the
Prosafe team based in Brazil.
Américo is well known to us, as he
joins from Prosafe Production where
he has been General Manager in Brazil
since 2007. He has been based in Rio
since 2006, and in that time he has
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amassed a great deal of experience in
managing vessel operations in Brazil
and with working for Petrobras. Aside
from the Country Manager, the other
positions that we will have based in
Rio will be the Finance Manager plus
an Administrative Assistant.
We will also have an operations
base in Macaé from where the
Petrobras Campos Basin operations
are managed. Macaé is located
approximately 160 km north east
of Rio. The vessel management team
to be based there will comprise a
Vessel Manager, Technical Superintendent, Purchasing and Supply
Chain, HR and HSEQ Advisors.
We still have much work to do prior
to the planned contract start up in
Q2 2011, however, we are in good
shape and looking forward to the
challenges ahead and ultimately to
providing Petrobras with a top
quality service.
Preparing for operations in Brazil
Safe Concordia is currently undergoing modifications in Caracas Bay, Curaçao,
in order to prepare the rig for her three-year contract in Brazil.
By Kolbjørn
Akselvoll,
Director of
Engineering
Safe Concordia has been moored at
Caracas Bay in Curaçao since the
transit from Pascagoula in the Gulf
of Mexico. The manning has been a
lay-up crew waiting on a confirmation from Petrobras on the threeyear contract in Brazil.
As part of the tendering process
for the work, Petrobras issued the
technical requirements for the
vessel for operation in the Campos
Basin. These requirements are both
specific contract requirements to
suit Petrobras’ operations as well
as legislations stipulated by the
Brazilian maritime authorities.
a bareboat contract in Mexico, is
managing the work scope. As the
island is a holiday resort with a
population of less than 150,000, a
number of overseas service companies have to be used to complete the
work. However, local assistance, such
as agents, diving, transportation,
scaffolding and steel construction
work, is used where available.
The accommodation capacity is
being increased with additional nine
modules, each with two four-bed
cabins, thereby increasing the accommodation capacity to 455 beds.
These modules have been fabricated
in China and are now in transit to
Curaçao. Other structural upgrade
work is the capacity of the helideck
which has to suit the helicopter
types Sikorsky S-92 and S-61N, installation of new radio room/electrical
equipment room and installation of
paint store on the main deck.
Petrobras has also specific requirements to the arrangement of the
existing accommodation and a
number of cabins, recreation areas,
meeting rooms and other service
areas have to be upgraded.
The most complex part of the
work is relating to electrical, DP,
IT and telecommunication systems.
To assist Prosafe in these areas,
Wilhelmsen Callenberg, who
provided services to Cotemar when
Safe Concordia was on bareboat
contract in Mexico, has been
awarded the service contract.
The vessel has recently undergone
the five-yearly Special Periodic
Survey and all main Class and Flag
State certificates are valid until
March 2015. All work is scheduled
to be completed within February
for the transit to Brazil.
In anticipation of being awarded the
contract, Prosafe commenced a number of activities to upgrade the Safe
Concordia and enhance the vessel.
These activities included engineering
design for approval by the classification society ABS, installation of
additional accommodation modules,
overhaul of all four thrusters, upgrade of the Dynamic Positioning
(DP) system and service of the main
generators. All upgrade work is done
at the current location in Caracas Bay.
A Prosafe project team was
established onboard the vessel. This
team together with our partner
Cotemar/Navigare, who operated
the Safe Concordia while she was on
Safe Concordia in Curaçao, preparing for her three-year contract in Brazil.
5
Complying with local
HSEQ requirements
Although the contract award from Petrobras has only been recently made,
the preparations required to provide a confident bid for the contract has
been a long process.
In the yard the necessary alterations are done in order to ensure that Safe Concordia complies with Petrobras and Brazilian regulatory
authorities’ requirements.
By Ian Young,
Director of
HSEQ
Brazil has been at the forefront
of pushing the boundaries for
Exploration and Production of
oil and gas in deep and ultra deep
water. As a result, many of the
installations in the Campos Basin
that the Safe Concordia will be
servicing as a Unit for Maintenance
& Safety (UMS) will be turret and
spread moored FPSOs.
6
More than two years ago, Prosafe
attended a Hazard Identification
study [HAZID] facilitated by DNV. The
purpose of the HAZID was to allow
Petrobras to evaluate which type of
unit would be best suited to the
differing installations in the Campos
basin. A clear outcome from this study
was that a Dynamically Positioned
(DP) semi-submersible would be the
safest option for gangway connection to floating installations. The Safe
Concordia is likely to be the first unit
to ever be gangway connected to a
turret moored FPSO.
In Brazil, there are a number of prescriptive requirements that the vessel
must be measured against from
various different agencies, including;
• Brazilian Naval requirements
• Brazilian Ministry for Labour
requirements
• The Aviation Authorities’
requirements
• The Environmental Authorities’
requirements
Prosafe began evaluating the
Petrobras and Brazilian regulatory
authorities’ requirements against
the vessel’s specification in January
2009, at the same time the Safe
Concordia was operating in the
US GoM at the Tahiti SPAR facility
for Chevron.
From an HSEQ perspective to
support the contract compliance
works, Prosafe has assigned
additional Safety Officers from
within the fleet to the Safe
Concordia and is recruiting a local
HSEQ Advisor who shall support
the vessel from Macaé.
In some cases the application of
these requirements has resulted
in alterations or enhancements to
the Safe Concordia. This work is
being managed by the in-house
technical department whilst the
vessel is located in Curaçao, Dutch
Antilles.
On arrival in Rio de Janeiro, the
Safe Concordia will be subjected to
inspections by the Brazilian Navy to
ensure legislative compliance and
Petrobras against the technical
prerequisites within the contract,
prior to commencing her contract.
Brazil – No.1 in offshore
Brazil has moved up in the ranks and is close to surpassing Venezuela to
become the No.1 oil producing country in South America. Brazil produces
2.1 million barrels of oil a day. Contrary to most other larger oil-producing
countries, Brazil is far off reaching peak production levels and could easily
see its daily production level double by 2020.
By Ingolf
Gillesdal,
Head of
Equity
Research
Norway,
Nordea
Markets
Offshore oil production is primarily
from offshore regions Espirito
Santos, the Campos basin and the
Santos basin. The real breakthrough
for the country’s oil industry occurred
in 2006 when the Tupi oil discovery
was announced. This marked the
world’s largest oil discovery in 30
years and is located in very deep
waters beyond pre-salt layers in the
Santos basin, indicating reserves of
five to eight billion barrels from the
field. Since then, several other major
discoveries have been identified in
the same region, propelling Brazil
to No.5 in the world in terms of
proven reserves, with 100 billion
barrels of oil equivalent (boe).
Brazil has ambitious plans and
has come a long way already.
Within deepwater, the Brazilian
state-owned oil company Petrobras
is the most experienced deepwater
operator with 22% of world-wide
market share. ExxonMobil, Shell
and Statoil each operate at around
14%.
Alone in deepwater, Petrobras
operates 45 of the total global
count of 252 contracted production
systems, primarily using FPSOs and
semi-subs. More is underway as
Petrobras expects to rapidly
increase its daily oil and gas
production to 3.9 million barrels
per day by 2014, up from 2.7
million barrels per day (2010).
7
After this, pre-salt production will
kick in and by 2020 daily production
is expected to increase to 5.4 million barrels. The leading privately
owned E&P company OGX Group
aims to increase its daily production
to 1.4 million boe by 2020, up from
zero at present. By comparison,
leading super majors ExxonMobil
and BP produce around four million
barrels per day with their modest
increase of 1-3% a year going
forward, indicating that Petrobras
will soon become the leading E&P
company in terms of daily production. A large number of planned
investments are targeted at infrastructure, logistics and oil service
value chain build-up in Brazil.
For the Tupi field alone with nonexisting current infrastructure for
oil production, Petrobras will require
eight major FPSOs, each one with
the capacity to produce 150,000
Looking at the safety and maintenance unit requirement associated
with existing fields, Petrobras has
one semi-sub safety and maintenance unit on charter (Etesco
Millenium). This is an anchored rig
that was contracted in 2008 for
which the contract expires in the
first half of 2011. This autumn,
Petrobras contracted two more
safety and maintenance units and
opted for dynamically positioned
semi-sub rigs. Floatel and Prosafe
were each awarded five- and threeyear fixed contracts for Floatel’s
newbuild (Floatel Reliance) and
Prosafe’s Safe Concordia.
Prosafe will set up an office in Rio de Janeiro.
barrels a day. Although build-up is
underway, the key medium-term
risk is companies’ access to human
capital and this could be the
country’s bottle neck in terms of
reaching its targets. Petrobras alone
sees a gap of more than 200,000
people in its four-year business plan.
The requirement for local content
and the shortage of trained human
resources is putting pressure on
wages and the company’s ability to
retain employees. Petrobras aims to
spend 67% of its whopping USD
224bn five-year business plan locally
(2010-2014). For the E&P, the local
content requirement has been
reduced to 53%, allowing for a
longer build-up period for local
suppliers. However, in the longer
term, the local content requirement
of 67% remains a target also for
this segment.
For offshore service contractors,
one consequence of this is a significant increase in operating cost
levels. Rig contractors could easily
find their operating cost levels
increasing to USD 165,000 per day,
up 25% since 2006. For operators of
supply vessels, the Brazilian
operating cost levels are 25-30%
higher versus Norwegian cost levels.
For the safety and maintenance
unit segment, indications are also
for high cost bases, particularly as
each of the companies involved
lacks experience and scale in Brazil.
Brazil’s build-up will also have an
effect on safety and maintenance
unit contractors in coming years.
A larger increase in the repair and
maintenance of existing fields in
the Espirito Santos basin and Campos
basin in coming years necessitates
safety and maintenance units.
Moreover, there is also a need
for logistics preparation of the
production build-up in the pre-salt
fields with a requirement for
offshore hubs to take care of the
logistics. Longer term, Brazil still
faces logistic challenges in its presalt development fields. The major
Tupi and Iara fields are located far
from the shore and the distance
itself is a problem.
8
Petrobras is looking into the use of
floating hubs midway between the
development fields and land. These
hubs will require multiple helicopter decks and possible accommodation. For owners of safety and
maintenance units, this might
generate extra demand for their
rigs. Otherwise, Petrobras could use
steel jackets halfway out in an area
that is still considered shallow
water (i.e. up to 50 meter of water
depth). Construction costs for such
jackets could end up costing less
versus floating safety and maintenance units, although the jackets
are less flexible.
We could see further contract
awards from Petrobras in 2011 as
it has launched another safety and
maintenance unit tender for multiyear charter. This time a DP unit is
targeted, but owing to the limited
number of units available, Petrobras
has also opened up for monohulls
or ship shaped DP vessels.
With the sudden large interest in
safety and maintenance units, the
region has absorbed almost all
international rig availability in 2011,
which provides for stable cash flow
for the contractors. Petrobras will
have to increase its maintenance
budgets on existing oil fields.
For Prosafe and its competitors
this bodes very well for the future.
Safety in focus
On 21 October 2010, Prosafe had the pleasure of welcoming internal and
external stakeholders to its Annual Safety Day.
By Ian Young, Director of HSEQ
The event was held in Aberdeen
with a focus on Emergency Response
and Crisis Management. The Safety
Day was very well attended by our
offshore employees, by employees
from our offices in Aberdeen,
Norway, Singapore and Cyprus, and
by client representatives from BG,
BP and Statoil.
Prosafe’s CEO, Karl Ronny Klungtvedt, began with an opening
speech, welcoming all our guests
and encouraging audience participation and open dialogue throughout the day. He said that the large
number of participants was a real
sign of the importance being
attached to safety in the company.
Improved HSE statistics
Robin Laird, Managing Director
Prosafe Offshore Pte Ltd stated that
we have seen a good trend when it
comes to our HSE results the last
couple of years, and that we are
developing a strong safety culture.
After a short review of the
company’s HSE performance,
Cameron Mew, HSEQ Manager gave
a detailed analysis of the HSE performance in 2010, with a particular
focus on first aid injury reports.
Prosafe’s commitment to zero
accidents and injuries, zero accidental emissions to the natural environment and zero occupational illnesses was reiterated. The fact that the
zero mindset has been achieved on
some of our rigs in recent years
proves that it is attainable.
Cameron further related that it is
our objective to reach this goal
across the whole fleet. Prosafe
recognizes that prevention is better
than the cure, and places great
emphasis on preventive actions. As
an example, suppliers of Personal
Protection Equipment (PPE) have
worked alongside our offshore
crew in order to identify the right
PPE to be used. This has amongst
others contributed to a reduced
number of eye injuries.
In order to strengthen our Risk
Assessment and Permit to Work
Systems onboard our vessels,
Fleet Safety Officer, Matt McBride
has been seconded to lead a
project that will be responsible for
implementing a computerised Risk
Management, Permit to Work and
Isolation System onboard.
Matt, who has been with this
project for nine months, provided
an overview of the new system that
is shortly to be introduced onboard
the Safe Caledonia.
In order to gain feedback from the
Masters and Crew of our rigs, the
floor was then open to each vessel
to give a presentation of their
unit’s performance and how
emergency response plans and
procedures are implemented in
practice.
Emergency Response and Crisis
Management
The tragic events surrounding the
loss of the Deep Water Horizon
that resulted in 11 fatalities and a
massive environmental disaster is a
focus for all involved in the oil and
gas industry. We are already seeing
that the aftermath of this disaster is
having an impact on the way we do
business. Whether questions are
raised about current “custom and
practice”, there is an increase in
inspections and surveillances by
regulators or increased insurance
Prosafé´s safety results are showing a positive development.
9
The Safety Day was well attended by Prosafe employees and client representatives. Here the audience is listening to Bjørn Ødegård’s
presentation of the Core Values.
personnel, environment, asset
or reputation.
Prior to and during the incident
involving Safe Concordia there was
an agreed protocol for managing
emergencies and crisis. As a result
of the incident, however, existing
protocols and procedures were
reviewed, changes were implemented and additional training
was provided to personnel.
Catching up with clients and colleagues. From left: Alastair Letty (BP Field Marine Rep.), Nils
Westergren (Master/OIM Safe Astoria), David Needes (ABS Safe Scandinavia) and Cathal
Kirwan (Chief Officer MSV Regalia).
premiums, we will feel its effects
within Prosafe.
One thing that cannot be disputed
is the pressure that a company will
endure during a sustained crisis.
The resources that are focused on
the initial emergency response may
have to transcend into a full blown
crisis management team, whose
remit extends far beyond that of
emergency response.
In Prosafe we were put to the test
when we experienced our own
crisis in 2008. The Safe Concordia
became enveloped in the outer
cyclone of Hurricane Ike. The sheer
size of the storm as it moved
through the Gulf of Mexico meant
that, despite a predefined hurricane procedure being followed, the
vessel struggled to make positive
headway and began to be pulled
toward shallow water. Throughout
this incident the vessel Master and
Crew were supported at both an
operational and corporate level.
Thankfully, this crisis had a successful outcome with no harm to
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Trine Albretsen, Risk and Insurance
Manager provided valuable insight
on the role of our insurers in both
the emergency and crisis management scenarios. Throughout the
situation with Safe Concordia in
Hurricane IKE, our insurers provided
support and guidance to our Crisis
Management team.
Two workshops closed the session
on Emergency Response and Crisis
Management. The themes were
different expectations in an
emergency from the perspective
of relative response and media
response. As with previous
workshops, the participants were
extremely productive and several
new ideas and approaches were
forthcoming, ranging from “contact
cards” for friends and family in the
event of an emergency to the pros
and cons of some of the social
networking sites such as Twitter
and Facebook.
Ever important core values
Following the workshops, Bjørn
Ødegård, Director of Corporate
Services and HR provided valuable
feedback to all on the progress
made in revitalizing our Core
Values, an initiative launch at last
year’s Safety Day. Bjørn informed
the audience of specific milestones
that had been achieved such as
Core Value Seminars, where
managers in Prosafe spent a day to
think through and illustrate how
core values could be applied within
their section of our company.
Onshore and offshore employees of the MSV Regalia. From left; Mike Jubb (Master/OIM MSV
Regalia), Becki McLeod (HR Coordinator), Mark Arlow (Vessel Manager MSV Regalia) and Alan
Ross (First Engineer MSV Regalia).
He further stated that the core
values are not intended to be
perceived as a bureaucratic
burden. They should rather be
viewed upon as boundaries, and
inside these boundaries, there is
freedom to act.
As if to reinforce the core values
even further, Karine Cosemans,
Communication and Branding
Manager gave an informative and
heartfelt presentation of Prosafe’s
Corporate Social Responsibility
policy in a practical perspective.
Prosafe has been supporting SOS
Children's Villages since 2004 and
has given substantial donations to
SOS Children's Villages in Nigeria,
Brazil, Mexico and the Philippines.
Karl Ronny Klungtvedt brought to
a close another greatly successful
Safety Day by making the
presentation of the Prosafe
Ambassador Award for 2010.
The crew of the Safe Caledonia
were nominated by Tom Milne,
Director of Operations for raising
the standards onboard the vessel
throughout a successful contract
with Total. Richard Kenington
(OIM/Master), Simon Carpenter
(Chief Engineer) and George Sewell
(Safety Officer) collected the award
on behalf of the Safe Caledonia
crew and management team.
A good opportunity to exchange experience. From left: Karl Dickinson (Account Manager),
Jim Mearns (Marine Manager) and Cameron Mew (HSEQ manager).
Enjoying the coffee break. From left: Captain Gordon Gray (Vessel Manager Safe Scandinavia),
Anders Mellkvist (Mechanic Safe Scandinavia), Daphane Chang (Financial Controller) and Bill
McFadzean (Master/OIM Safe Scandinavia).
11
The new group CEO
On 1st October, Karl Ronny Klungtvedt (37) became Chief Executive Officer of
Prosafe SE, based in the company’s headquarters in Cyprus. When visiting the
office in Norway for investor meetings in November, he made time to sit down
and share his views on his role as CEO of the world’s leading owner and operator
of semi-submersible accommodation rigs with the readers of Prosafe NOW.
By Karine Cosemans,
Communication and branding
manager
Can you give a short presentation
of your background?
I have worked for Prosafe for about
nine years. On paper, I have worked
in different positions on the finance
side, but in reality I have had crossfunctional jobs. My work has been
about trying to understand the
business and how the business can
be developed, and matching that
with the expectations from shareholders and with what is possible
from the finance side.
Many people might not be aware
that you have both and engineering
and an economics education?
Before going to university I was
contemplating to do lots of
different things. I saw that when I
started with engineering I could at
any time jump across the fence and
look more at economics or business
administration. Therefore it was a
safe bet to start on the engineering
side, and to be fair, that is where
also most of my interest was.
I studied mechanical engineering,
which probably is one of the
broadest engineering disciplines,
and gave me a very good insight
into a number of subjects. I have
seen that even though I have never
worked as an engineer as such, it
has been a very valuable experience
to bring with me in my job in Prosafe.
Following that, I did a complete
conversion from an educational
point of view. I studied economics,
which is a very theoretical subject.
As opposed to many business
studies that tend to focus on a
practical approach, economics
approaches the running of an
economy or a business from a
theoretical angle.
After my studies, I started working
as a management consultant,
focusing amongst others on work
processes related to logistics and
material management and
evaluations of new field
developments in the oil industry.
Thereafter, I worked some years
in the banking industry, looking
at financial instruments and
derivatives. Quite a lot of the focus
in that job was on understanding
the world economy and how that
was impacting on currencies,
interest rate levels, etc. and then
mirror that with the exposure of
each business and figuring out
how to reduce the financial risk.
After that, I joined Prosafe as
Group Treasurer in April 2002.
How do you see your new role as
CEO? Will there be a difference?
Each person needs to find their
own role and figure out their
own way of developing the
business.
12
It is now two and a half years ago
since we completed the split of the
business, with the FPSO business
going one way and the accommodation business going another way.
Quite recently we sold the 10 per
cent stake we had in Prosafe
Production to BW Offshore, and just
after that we sold the BW Offshore
shares. This means that we now
have a complete focus on our core
business, which is being an owner/
operator of accommodation rigs.
We have over the last two years
strengthened the balance sheet,
and we have significantly reduced
our debt levels. The financial crisis
put us in a sort of conservative,
consolidating mode. This was
necessary from a financial perspective. We were living on old
contracts, had to be very cautious
of how we spent our cash and
needed to make sure that the
business remained financially
robust.
Our business is late cyclical. To a
certain degree you can say that the
work we are doing now is related
to budget decisions taken a couple
of years back by the oil companies.
It still means that the late effects of
the financial crisis are impacting our
market, but are about to wear off.
Moving into 2011 we are seeing
there is quite a bit of new work
coming, which reflects a positive
looking market.
“
The market has
restarted again
and that is likely to
lead to a positive
development
over the next
few years.
“
-Karl Ronny Klungtvedt
We see this clearly in the North Sea,
which is probably the most important market for us. We also see a
robust development in Mexico and
a very strong market opening up in
Brazil. There are lots of opportunities coming, and it is really up to
the organisation to adapt from the
slightly slow moving market we
have seen over the last couple of
years, and work more actively to
develop the business and seek new
opportunities for growth. There is
clearly potential for the business to
become both larger and stronger
than we are today.
Over the last two years we have
seen our order book shrinking and
it is really only since the summer
that we have seen the tide turning.
We won a two and a half year
contract for Safe Lancia, a threeyear contract for Safe Concordia in
Brazil, we got an extension in
Mexico for Jasminia, and also won
more work for Safe Caledonia. The
market has restarted again and that
is likely to lead to a positive development over the next few years.
What do you see as Prosafe’s key
advantages when you compare to
our peers or competitors?
First of all, we have a very long
operating track record. We have
done all sorts of jobs based on
dynamic positioned rigs, anchored
rigs and we also have one jack-up.
We have been working in benign
regions and in harsh regions.
We have experience from
operations in the UK, Norway, the
Mediterranean, West Africa, Asia
and the USA. None of our competitors can offer that broad level of
experience. From an operational
perspective we have lots of luggage
to bring with us and lots of
competence to use going forward.
We have also worked on the
HSE side to make sure that we
constantly develop better systems
and we work hard to instill a safety
culture in the company and
amongst our people. In that aspect,
we are one step ahead of some of
our competitors. They simply
cannot afford to put the same
emphasis on HSE or they do not
have a number of people who are
working solely with improving the
HSE performance of the business.
When it comes to the cost of
capital, we have a benefit of having
a large fleet. It is not always easy to
foresee how the accommodation
market is developing when looking
at it on a single asset basis. All the
time, you know that you are likely
to have one or two units available
(not operating), but you never
know which one it is going to be.
By having a large fleet, we basically
see that the financial risk of having
one or two vessels idle is not that
great because we have a robust
backbone.
The size of the fleet is also very
important from a financing and an
equity investment point of view.
It means that we can provide some
robustness both to the banks and
also to equity investors. They are
seeing that the risk of either
lending money to Prosafe or
investing in Prosafe is substantially
smaller than the risk of lending to
or investing in a company that only
operates one or two assets.
A large fleet also enables us to
offer our clients different solutions
depending on their specific need,
and hopefully it means we can then
provide them with the most costefficient solution at any point in
time.
What are your thoughts on
leadership? How would you
describe your leadership style?
I don’t know yet, we will have to
see how that develops. But what I
am hoping to achieve is to engage
and enable people to use their
competence and see that they can
actually make a difference. Every
single employee in Prosafe should
be aware that he or she is really
contributing to the overall objective
of the business. I will also
endeavour to align everybody’s
14
understanding of where we want
to develop the business.
How do you want to achieve that
everybody feels that his or her
contribution is important?
We probably need to start by
defining where we want to take
the business. If people don’t know
what we want to achieve, it is also
hard for them to work towards that
objective. We are currently
developing a strategy for the
business for the next five years.
When this work is concluded, we
will need to ensure that the people
in the organisation both understand and relate to this strategy.
We need to make sure that what
we do on the management level
helps them to work towards those
objectives.
On a more personal level – you
have three small children. How do
you manage to combine family life
with a demanding job with a lot of
travelling?
I guess our family is fortunate in
the respect that my wife currently is
not working. It means that during
the week days she takes probably
more than her fair share of the
workload. During the evenings and
during the weekends I am trying to
make up for that. One can debate
whether I achieve that, but at least
I try to.
Do you have time for any hobbies?
I have more hobbies than spare
time. Some of them are put on the
shelf for later use, but there are still
a couple of things that I try to do.
One is sort of a selfish hobby, and
that is listening to music. I find that
if I can sit down after a stressful
day, relax and listen to some good
music that is like restarting the PC.
You get rid of all the old issues that
have been slowing down your
thinking and have been wearing
you out. For me it is a good mental
way to relax.
A second hobby is fishing. That is a
time consuming hobby which does
not go too well with a busy job
“
Every single
employee in Prosafe
should be aware
that he or she is
really contributing to
the overall objective
of the business.
“
-Karl Ronny Klungtvedt
situation and a busy family. But, the
good thing is that the two oldest
children are now at an age where I
can go fishing with them. Currently,
I am in a phase that I call “recruitment fishing”. I am bringing them
out to places where we are pretty
certain to catch some fish, and I am
hoping that that will spark some
interest and will allow us over time
to share that interest.
A third hobby is football. I have
always been very interested in
football and played myself for some
years. For nearly ten years I have
been a football coach. Currently,
I am coaching the football team
where my son is playing.
How do you see our strategy going
forward?
I think it is clear that we cannot rest
on our laurels – we need to be a bit
hungrier again. We need to
continue developing the positive
trends we have had on the Health,
Safety and Environment (HSE) side
and on the operational side.
Over the last few years, we have
been investing to increase the
quality of the fleet and we are
certainly not done in that respect.
We still have a likely refurbishment
of the Safe Caledonia coming that
should put her in a much better
shape than she is today. All of the
time, we need to look at how we
can ensure that our fleet is being
renewed. In some shape or form it
is likely that we, over time, also will
see that there will be some new
additions to the fleet.
“
We have to create the
energy in the organisation
to want to achieve our
targets.
“
-Karl Ronny Klungtvedt
16
Are there any challenges to achieve
that?
I guess the most important thing is
getting the people in the organisation engaged in defining very
good long-term objectives for the
business. When that is done, we
have to create the energy in the
organisation to want to achieve
those targets and use that energy
to find the best way of developing
the business.
Making a difference
At the end of August, a new SOS Children’s Village in Bataan, the Philippines, was
officially opened. Two of the houses in this village have been financed by Prosafe.
By Karine Cosemans,
Communication and branding
manager
Social responsibility is important
for Prosafe. We want to give
something back to the countries
where we are represented
and contribute to their positive
development. As part of our social
responsibility, we have been
supporting SOS Children’s Villages
since 2004.
SOS Children’s Villages gives
family-based, long-term care to
children. Sometimes parents are
not able to care for their children
Prosafe’s donation financed the building of two family houses in Bataan.
17
alone; sometimes children lose
their parents or never knew them.
These are the children SOS
Children’s Villages helps. They
give them a loving home and
accompany the children from their
early childhood to early adulthood,
when they are able to take care
of themselves.
Today, more than 76,000 children in
508 SOS Children’s Villages all over
the world can grow up in an
environment which is as close to a
family as possible. The villages
consist of family houses, each with
8 – 12 children and an SOS mother
who takes care of them.
A new SOS Children’s Village
Our latest donations financed the
building of two family houses in a
new SOS Children’s Village in
Bataan, the Philippines. The village
consists of 12 family houses, each
accommodating one mother and
up to ten children, an administration office, a director’s house, a
staff house and a multipurpose
hall.
At the end of August, I attended
the official inaugural ceremony of
this SOS Children’s Village. We
were welcomed by smiling, singing
and dancing children. Two small
girls trustfully took my hands and
accompanied me on a tour of the
village.
The ceremony was attended by the
sponsors, representatives from local
and provincial government, nongovernment organisations and
people from the community.
Children from the SOS Village, local
ensembles of singers and dancing
groups entertained in between the
many speeches.
Mother Helen told me about the
background of some of the
children in the SOS Children’s
Village. She told the story of a
brother and sister who were given
a home in the SOS Children’s
Village because their father was in
prison. He was in prison because he
had killed their mother...
One speech made a special
impression on me. Mr Helmut
Kutin, who grew up in an SOS
Children’s Village in Imst, Austria,
and who now is President of SOS
Children’s Villages International,
stated:
–Children may be orphans, they
may be abandoned, but they can
be sure that when they come to us,
they will always have a mother and
a home.
Another four brothers and sisters
were taken care of by SOS
Children’s Villages because both
parents were blind and the
children were left to themselves
and had to beg or steal to find
food.
Giving children a future
Later that day, I joined Mother
Helen and her children for dinner.
Mother Helen, who lives in one of
the “Prosafe houses”, takes care of
ten children aged between 2 and 14.
It was a real joy to have the
opportunity to speak with Mother
Helen and her children and get to
know them a bit better. Even
though these children have been
through rough times, they have
not lost faith in the future, and
each and every one of them has his
or her dreams. When I asked
Redgrave, an eight year old boy,
what kind of job he would like to
Unveiling the plaque beside the front door of one of the Prosafe houses. Back from left: Karine Cosemans (Communication and Branding
Manager, Prosafe), child, Mother Helen, Lene Aarnes (SOS Children’s Villages) and Salvador Ramirez (Village Director Bataan). Front: the
children that live in the Prosafe house.
18
In the SOS Children’s Village children can grow up in an environment that is as close to a family as possible.
have as an adult, he said that he
would like to become a doctor, so
that he could take care of Mother
Helen if she should fall ill.
Invaluable washing machines
The SOS Children’s Village in
Bataan was financed by five
companies and representatives of
each of these companies attended
the opening ceremony. Prior to
departure, we discussed what kind
of gift we could present to the
mothers at the opening ceremony.
When we found out that the
houses did not have washing
machines, the decision was easy.
We decided to give a washing
machine to each of the houses.
The mothers were delighted and
immensely grateful when being
told this news.
Help to self-help
It was a great and unforgettable
experience to see with my own
eyes that the support that we have
given has resulted in nice houses
that now are the homes of so many
children. These children can grow
up in a safe and caring family, play
with friends, go to school and get
an education, so that they will be
able to take care of themselves
when they become adults.
Meeting the mothers who are
devoting their lives to giving care
and love to the children, and
19
Happy children, SOS Mothers and Village
Director posing behind the washing
machines.
seeing the happy faces of the
children in the village, was the best
confirmation I could get that every
single cent that we have given to
SOS Children’s Villages has been
well spent.
A field trip to Mexico
The Gulf of Mexico (GoM) and more specific the Cantarell field operated by
the Mexican state oil company Petróleos Mexicanos (PEMEX), is an important
market for Prosafe.
By Bjørn Ødegård,
Director of Corporate Services
and Human Resources
Monitoring rig operations
Prosafe closely monitors all its operations. In this respect, we make
regular visits to the different vessels
in order to get first-hand knowledge
of our rig operations. In November,
four members of Prosafe’s management team made a field trip to
Mexico. The visit was made together
with our long standing partner
Cotemar who provides manpower
and operates our rigs in Mexico.
Upon arrival in Ciudad del Carmen,
the first pleasant surprise was the
location of the airport, only ten
minutes from the office, the hotel
and the base. Even though the
town has close to 180,000 inhabitants, it has maintained an intimate
atmosphere from the days before
the oil era.
The second pleasant observation was
the appearance and efficiency of our
partners’ operation. Cotemar runs an
integrated business comprising
catering, offshore construction and
maintenance as well as an offshore
supply base and personnel transport
by boat and helicopter. During the
guided tour, we did not only see
immaculate warehouses and offices,
but we also met a lot of proud
employees with efficiency and safety
on their agenda. State of the art
support functions further illustrated
Cotemar’s commitment to
outperform most expectations.
Ready for take off. From left: Ed Hukill (Managing Director, Navigare), Martin Kolnes
(CFO, Prosafe), Robin Laird (Managing Director, Prosafe Offshore Pte Ltd), Karl Ronny
Klungtvedt (CEO, Prosafe), Carlos Garza Snydelaar (Director Marine Operations, Cotemar)
and Roger Wilneff (Manager Special Projects, Navigare).
The Cantarell field complex comprises
four adjacent oil fields known as Akal,
Chac, Kutz and Nohoch. It is located in
the Bay of Campeche, GoM, 75 to 80
km NNW of Ciudad del Carmen in
water depths from 40 - 60m.
The Cantarell field was discovered
in 1976 by Rudesindo Cantarell, a
fisherman. He notified PEMEX of the
discovery of an oil spot, springing up
from the bottom of the sea. By 1981
the Cantarell complex was producing
1.16 million barrels per day (bpd).
However, the production rate dropped
to 1 million bpd in 1995 and spurred a
nitrogen injection project starting in
2000. As a result, the production rate
increased to 2.1 million bpd of output
in 2003. From 2005, production began
to decline rapidly. By January 2009, oil
production at Cantarell had fallen to
772,000 bpd.
20
Flying out to the Cantarell field, the
sight of all offshore installations was
overwhelming. From a distance, the
vast number of structures could be
seen either as stand alone installations or as combinations of several
PEMEX has since been investing heavily
to revive the declining production on
the Cantarell field. The measures taken
to boost declining production involve
high activity offshore, and thereby also
a substantial demand for offshore
accommodation. Currently, Prosafe has
five units in Mexico offering accommodation support in connection with
repair and maintenance work to
existing platforms in the Cantarell
field.
Climbing the stairs of the Safe Britannia.
Safe Hibernia with two helidecks and helicopter hangar, operating gangway connected.
installations under the slight mist
from the gas flared in the field.
deck space and large cranes, the Safe
Lancia plays a vital role in the ongoing maintenance programme for
PEMEX.
The largest DP rig – Safe Britannia
Prosafe and Cotemar management
visited and inspected three rigs. We
first visited our largest vessel, the
Safe Britannia, a rig capable of accommodating 812 offshore workers.
She is a DP vessel that is moved
between the offshore structures. The
offshore crew is transported with
fast oceangoing supply boats, which
are slightly smaller than the boats
used in the North Sea. When the sea
is calm, the workers walk over a
manual gangway to the accommodation rig. When the waves are higher,
they use a basket to transport the
crew onto the rig.
The Shipboard Management onboard the Safe Britannia presented a
well maintained vessel, currently
undergoing upgrades and modifications to prolong the technical life of
the vessel. We were able to take a
closer look at the refurbishment as
well as the results of the continuous
paint programme.
The construction support rig
– Safe Lancia
The Safe Lancia was the next vessel
to welcome us. In addition to offering accommodation, Safe Lancia is
also used as a construction and
maintenance vessel. On this rig,
Cotemar produces and assembles
prefabricated structures. With ample
The rig’s crew was busy preparing for
the replacement of one thruster, an
operation that requires detailed
planning and skilled engineers and
workers. The thruster replacement
would be conducted without drydocking the unit, and 16 divers
where ready to perform the underwater operation. Good weather
conditions are prerequisite to perform this type of work. Unlike the
North Sea and other areas where
Prosafe operates its rigs, the Bay of
Campeche enjoys calm sea and good
weather conditions most of the year.
The anchored rig – Safe Hibernia
The final vessel visited was the Safe
Hibernia, which can be easily recognized from air because she has two
helidecks, one on each side of the
unique helicopter hangar. The size of
this anchored vessel becomes
apparent when you walk around.
The living quarters are large and
there is plenty of deck space. Still,
the atmosphere onboard is intimate
and cosy. Smaller common rooms, an
original layout and different colour
schemes lead us to the conclusion
that the Safe Hibernia is special.
The Shipboard Management gave us
a tour and showed us the technical
status of the rig. We also enjoyed a
21
very good meal on the rig’s bridge.
The food that we were served was
of high quality and would not have
been out of place in any first-class
restaurant in town.
The objective of the visit was to get
first-hand knowledge of the status
of the rigs as well as a better understanding of the Mexican operations.
Both of these objectives were
achieved, and in addition we had the
opportunity to further strengthen
our close working relationship with
Cotemar.
Continued work in the GoM
Revenues from PEMEX’ oil production account for about 40 per cent
of the Mexican economy and are
very important for the country’s
prosperity. In order to upkeep
production from the Cantarell field,
PEMEX follows an expressed strategy
which involves a considerable construction programme and continuous
maintenance of the existing offshore
installations. PEMEX also has plans
for deepwater drilling campaigns in
order to increase total production.
Based on the high projected activity
level, we foresee a long-term
demand for a large number of
accommodation units in the region.
Together with our partner Cotemar,
we will continue to provide accommodation services in order to assist
PEMEX in its efforts.
MSV Regalia – Safe Scandinavia
rig change-out
After six successful months of operation for Statoil on Snorre A, the
accommodation rig Safe Scandinavia has been re-located alongside BP Norge’s
new PH platform at the Valhall Complex.
Both Safe Scandinavia (left) and MSV Regalia (right) on location alongside the Valhall Complex during the vessel change-out. The leftmost
jacket platform is the new production and hotel platform at Valhall.
By Klaus Tveita,
Country Manager Norway
Safe Scandinavia will replace MSV
Regalia over the winter and early
spring as the accommodation rig
for the ongoing Valhall ReDevelopment Project. Safe
Scandinavia is a moored vessel
with a client capacity of 480 beds,
a marine crew of 31 and 18
caterers. The gangway from Safe
Scandinavia was landed on deck of
Valhall on 21 November.
Until the recent vessel change-out,
MSV Regalia has served as the
accommodation vessel alongside
the Valhall Complex. Since July
2009, the rig has, while operating
on dynamic positioning, been able
to connect the gangway to various
positions on the Valhall platform
complex. This has allowed for
completion of heavy lifting
operations and other marine
operations on the field without
any disturbance or interference
from the accommodation vessel.
22
Utilisation of different types of
rigs with varying characteristics
and capacities allows for optimization of client’s needs in each
operational context. With a fleet
of 12 rigs, Prosafe is in position to
adjust in accordance to specific
requirements in each field.
Modifications at Valhall include
installation of new Production and
Hotel platform (Valhall PH), which
has a gangway landing platform
clearance to the sea level of 37
meters. This is higher than the
standard level and it requires a
modification of the gangway
fitted on Safe Scandinavia. The
modification has been done
several times before on Prosafe’s
rigs, and was this time carried out
at Hanøytangen yard off Bergen,
Norway, during November.
It is not the first time Safe
Scandinavia has been in service
at the Valhall Complex. The vessel
was in operation in the winter
season of 2008/09 while MSV
Regalia underwent a major
refurbishment. Safe Scandinavia’s
operation alongside Valhall was
then a total success with a 100%
continued gangway connection
throughout the six-month period.
Both the crew of Safe Scandinavia
and the project team on Valhall
Re-Development Project are
aiming for a similar gangway
connection performance over this
coming winter.
During towing towards the field,
the rig experienced winds of over
20 m/s and waves up to 9 meters.
In these conditions the rig and its
anchor handling tow vessel were
not able to make much headway
against the weather. It was
therefore decided that it would be
prudent to hove the vessel too
until the weather improved. (i.e.
maintain position and heading
without making any attempt to
make headway into the weather this in order to ease the vessel
stresses and motions).
When the weather conditions
improved enough to continue on
passage to the Valhall location,
the rig resumed her towing
progress towards the Valhall PH
location. She arrived on location
in the Valhall field late evening of
19 November.
The rig move from Hanøytangen
and mooring at Valhall was
Captain Mikael Engström’s first rig
move as a Captain for Prosafe on
Safe Scandinavia. Together with
his back-to-back on the vessel,
Captain Callum Campbell, the rig
was safely and securely moored in
the stand-off position just south of
the new Valhall Production and
Hotel Platform. A job well done by
all the team members both in
Prosafe, BP Norge and the four
participating anchor handling
vessels.
The client has expressed their
satisfaction and is very happy with
the way the vessel change-out
between MSV Regalia and Safe
Scandinavia was conducted.
The two vessels each have
individual operational features
and characteristics that can be
utilized by the different clients in
the different phases of their
offshore modification and upgrade projects. The cooperation
between the vessel management
and the client has proven to be
very good, and this lays the
ground for another successful
operation over the winter season
at the Valhall Complex.
Management appointment
Bjørn Ødegård (born 1957)
was appointed Director of
Corporate Services and HR
of Prosafe SE in October
2010. Mr Ødegård is based
in the Cyprus office where
he will also act as the
General Manager for
Prosafe SE.
Klaus Tveita (born 1973) was
appointed Acting General
Manager of Prosafe AS in
October 2010. Mr Tveita is
based in Stavanger, Norway,
where he will also fill the
function as the Country
Manager in Norway overlooking
Prosafe’s Norwegian operation.
Mr Ødegård joined Prosafe
in 2007 as General Manager
for Prosafe AS in Stavanger,
Norway.
Mr Tveita joined Prosafe in 2009
as Country Manager in Norway.
Prior to joining Prosafe, Mr
Tveita was Engineering Manager at Norwegian based
Beerenberg. Earlier in his career, he has held various
positions within engineering in Aker and other oil
service companies. Mr Tveita holds a MEng degree in
Mechanical Engineering from University of Newcastle
upon Tyne.
Prior to joining Prosafe, Mr Ødegård was Finance
Director at the hospital in Stavanger. Earlier in his
career, he held various positions in the oilfield service
industry.
23
Creating value through
dividend and growth
Since its formation in 1997, Prosafe has been through a period of major
investments and purchase and sale of companies and capital intensive assets.
Investors have different investment
strategies when investing in shares.
Some investors are seeking dividend
stocks, some are seeking growth
stocks, while many are seeking a
combination, stocks that provide
both dividend and potential for
growth.
By Cecilie H. Ouff,
Finance and IR Manager
Today, Prosafe is a focused accommodation rig company and is the
leading accommodation rig
company in the world. Going
forward, Prosafe has the financial
position and ambition to grow the
accommodation business, always
seeking a competitive risk-adjusted
return for the shareholders.
Overview shareholders
Prosafe SE is registered in Cyprus
and listed on the Oslo Stock
Exchange. At 30 November 2010,
Prosafe’s share price was NOK 41,
giving the company a market capitalisation of NOK 9.1 billion (USD 1.5
billion) based on outstanding shares.
The shareholder lists produced by
VPS (Oslo Clearing) often do not
give a real picture of a company's
ownership because many foreign
shareholders have registered their
shares on what is known as
nominee accounts. Therefore,
Prosafe gets analysis done of the
underlying beneficial owners and
fund managers holding stocks
registered on nominee accounts in
Prosafe’s register of ownership.
20 largest shareholders in Prosafe at 3 November 2010
FUND/FUND MANAGER
Folketrygdfondet
Pareto AS
Standard Life Investments
H Partners Management
Fidelity Investments
Delta Lloyd Asset Management
Prosafe SE (own treasury shares)
Clearstream, Frankfurt (Custodian did not disclose)
Swedbank Robur
Schroder Investment Management
Odin Fund Management
Polaris Capital Management
Invesco Perpetual
Henderson Global Investors
KLP
Kempen Capital Management
Morgan Stanley (Custodian did not disclose)
BlackRock
DnB NOR Asset Management
Nordea Fonder (Finland)
% at
3 Nov
7,39
6,43
3,65
3,49
3,44
3,21
3,04
2,92
2,76
2,53
2,52
2,51
2,31
2,19
2,01
1,83
1,69
1,52
1,47
1,42
Source: Nominee ID by RD IR and Oslo Børs VPS
24
Rank
Nov
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Rank
August
1
2
3
5
9
8
6
15
4
10
11
12
17
14
33
7
13
18
Cumulative
% Total
7,39
13,82
17,48
20,97
24,41
27,61
30,65
33,57
36,34
38,86
41,38
43,89
46,20
48,39
50,40
52,23
53,93
55,45
56,91
58,33
Shares
16
14
8
8
7
7
6
6
6
5
5
5
5
5
4
4
3
3
3
3
995
792
394
035
900
370
994
713
356
808
794
772
305
031
624
218
888
495
375
255
735
387
225
000
000
000
355
622
000
830
200
400
253
017
857
782
154
989
688
822
At 3 November 2010, the largest
shareholders in Prosafe are a mix of
institutional investors from Europe
and US. The Norwegian state
pension fund (Folketrygdfondet) is
the largest shareholder, Pareto AS
in Norway second, Standard Life
Investments in Edinburgh third, H
Partners in New York fourth and
Fidelity Investments in Boston fifth.
Below is an overview of shareholders in Prosafe listed by country.
In the period from August to
November 2010, the US shareholding has increased, while the
Norwegian and UK ownership share
has decreased.
Create value through dividend
and growth
Prosafe’s objective is to provide
shareholders with a competitive,
risk-adjusted yield on their shares
through a combination of share
price appreciation and direct return
in the form of dividend.
Prosafe will return capital on
profitable investments to the
owners of the company. Prosafe’s
long-term dividend policy is a
distribution of 40- 50 per cent of
the company's net profit paid to
the owners tri-annually the
following year. The level of
“
By returning cash in the form of dividend to
the owners, Prosafe demonstrates profitability
and ability to generate value. From a shareholder
perspective, cash return over time creates trust.
A trust that the company is doing the right
thing…
“
-Cecilie Ouff
dividend will reflect the underlying
financial development of the
company, while taking account of
opportunities for further value
creation through profitable investments. Total dividend in 2010 is
0.285 USD per share, paid as 1.72
Norwegian kroner per share, which
equals 50 percent payout based on
net profit in 2009.
By returning cash in the form of
dividend to the owners, Prosafe
demonstrates profitability and ability
to generate value. From a shareholder perspective, cash return over
time creates trust. A trust that the
company is doing the right thing:
investing capital and creating value
for employees, clients and owners,
returning part of the generated
value to the owners by paying
dividends, and then reinvesting
retained earnings in new profitable
projects. This trust helps to ensure
that shareholders will support
further investments and growth.
Prosafe will create value for shareholders, employees and clients by
reinvesting capital to undertake
profitable investments to grow the
business. Prosafe will maintain and
modernise the rig fleet. The company will undertake life extension
projects and upgrade the rigs, such
as was done with MSV Regalia in
2009 and as planned for Safe
Caledonia in 2012. Prosafe will
increase the fleet size to meet
future demand and potentially
construct towards long-term work.
Shareholders by country
35
3 November
30
Ownership in %
25 August
25
20
15
10
*Prosafe SE own shares
25
Hong Kong
Belgium
Kuwait
France
Switzerland
Luxembourg
Finland
Denmark
Unidentified
Cyprus*
Scotland
Canada
Germany
Sweden
Netherlands
England
USA
0
Norway
5
2010 Ambassador Prize
Prosafe’s Ambassador Prize is annually awarded to employees who have been
true ambassadors for the company’s core values. This year’s prize was given to
the Safe Caledonia crew for raising the standards onboard the vessel throughout
a successful contract with Total and for outstanding moral onboard.
By Karine Cosemans,
Communication and branding
manager
Safe Caledonia, continues Richard.
We have all worked as a strong
team, always using the core values
as guidelines in our day-to-day
activities. Although we have started
the turnaround process, there is still
a lot of improvement to be made,
and we are looking forward to the
planned upgrade in 2012.
The Ambassador Prize was
established in 2002 in order to
enhance the employees’ focus
on Prosafe’s core values and to
acknowledge the efforts of those
who in an excellent way have
promoted one or several of our
core values.
About 120 employees, clients and
suppliers were present when Karl
Ronny Klungtvedt, Chief Executive
Officer of Prosafe SE presented this
year’s prize to the Safe Caledonia
crew at Prosafe’s Annual Safety Day
on 21 October.
Richard Kenington, Master/OIM of
Safe Caledonia says that it came
as a great surprise to him and the
vessel representatives when Karl
Ronny Klungtvedt announced that
the Safe Caledonia would be
awarded the coveted Prosafe
Ambassador Prize.
We will continue to work determinedly to ensure that we can maintain
and further improve the rig’s
standard. The Ambassador Prize will
be displayed in the vessel’s reception and will be a silent reminder,
providing motivation to all onboard
to keep up the good work.
The winning proposal was
submitted by Tom Milne, Director
of Operations. He wrote the
following recommendation:
“
-Nobody from the vessel knew that
we would be presented with this
award when we attended the
Safety Day in Aberdeen, says
Richard. Likewise, the crew
members serving onboard were
surprised, grateful and very proud
when hearing that their efforts had
been recognised by the company.
The vessel’s Shipboard Management
team and crew have been working
hard to raise the standard on the
I would like to nominate the
Crew of Safe Caledonia for this
year’s Ambassador Prize.
The Safe Caledonia has just
successfully completed a threeyear and four months contract
for Total working between the
Dunbar, Elgin and Franklin
platforms.
I recall preparing the Safe
Caledonia for her work for Total
during a hectic yard stay in May
2007. We arrived in the yard
with 22 conditions of class and
26
reduced this to six on departure.
Morale was low as the crew felt
they were fire-fighting all the
time rather than looking
forward. The DNV surveyor in
the yard pinpointed that we had
many challenges to overcome.
A while ago, we had to go into
the yard for some repairs to a
pontoon, and the same DNV
surveyor was shown around the
vessel. The surveyor was so
impressed that he made a
special internal note on the
vessel file complimenting the
condition of the unit. He also
highlighted the pride and
ownership the crew had in their
vessel. His actual words to me
were: “It’s like chalk and
cheese”.
I must also mention that the
vessel has been operating over
two years now without a single
condition of class.
This significant improvement
would not have been possible
without the hard work and
dedication of every single crew
member. During this turnaround
operation, they have been true
ambassadors for most of the
company’s core values.
I would especially like to name
the following:
Prosafe’s CEO, Karl Ronny Klungtvedt (second from right) presented the Ambassador Prize to the Safe Caledonia crew, here represented
by Richard Kenington, Master/OIM (left), Simon Carpenter, Chief Engineer (second from left) and George Sewell, Safety Officer (right).
Ambition and Focus are prerequisites for this turnaround in
operations. The crew has
worked diligently improving
the standards onboard for
everyone.
The rig’s successful operations
with high uptime contributed to
improved efficiency and thereby
Profitability for all our stakeholders.
There was a very good cooperation between our crew and
our client. Day-to-day activities
have been based on an under-
standing of each other’s needs
and on mutual Respect.
After two back injuries in 2009
that were classified as LTIs, the
rig has worked determinedly to
improve its Safety results. These
efforts have paid off. So far this
year, there has not been one
single LTI on the Safe Caledonia.
So for all the above reasons I
have no hesitation in recommending the Safe Caledonia
and her crew for the coveted
award.
27
Safe Caledonia’s Richard Kenington
(Master/OIM), Simon Carpenter
(Chief Engineer) and George Sewell
(Safety Officer) collected the award
and a £5,000 gift voucher on behalf
of the Safe Caledonia crew and
management team.
We wish the Safe Caledonia crew
all the best and good luck in the
future. At the same time, we wish to
remind all co-workers in Prosafe that
our success is determined by the way
we do things. Our core values must
guide the conduct of our overall
business and the behaviour of each
employee at all times. They have
helped us to come where we are
today, and they will guide us forward.
Prosafe SE
Stadiou Street 126
CY-6020 Larnaca
Cyprus
We wish you
Happy Holidays
Rather than sending Season’s Greetings cards, we have chosen to give
a donation to SOS Children’s Villages.