Welcome to the second quarter 2024 presentation for Prosafe. In the quarter, we had very good safety performance. We actually had no LTIs for the last 12 months. The utilization of the operating fleet was 56% and close to 100% for the four vessels that actually were working. In the quarter, we have secured letter of intents for both Boreas and Caledonia, and we expect those to firm up during August. Numbers wise, the EBITDA came in at $6.6 million in a quarter. That was in line with the first quarter and very much in line with expectations. We saw a significant improvement compared to last year, where actually revenue, the first half of this year, revenue more than doubled and EBITDA came in at $14 million versus -$16 million last year. Cash stands at $66 million, up from $63 million last quarter.
We have runway into the second, third quarter of 2025 versus our covenants and liquidity, and the improvement is very much due to the payment terms we have managed to negotiate for the letter of intents that we have secured. So going forward, we are factoring CapEx of total $80 million. That is related to SPS for the vessels that are due for that, thruster overhauls, mid-life work, as well as mobilization and reactivation for Boreas and Caledonia. The loans mature in 2025, as you are aware, and we will start financing, refinancing this in good time before they are maturing and on the back of the increased backlog that we now are securing. Outlook wise, we have good visibility for 2025 and also into 2026. And we expect the options on Concordia, the Concordia is fixed until November this year.
We expect the options to be declared. We have, yeah, fairly sort of high expectation that they will be declared, so that she will run until February next year. When it comes to the vessels, this is how it looks. Here we have indicated the letters of intent and the options. So you can see we also here sort of indicated when we are planning to do the SPS and CapEx work for the different vessels. To go a little bit into the Safe Boreas. So she will go into 15 months firm contract with six months option in Western Australia. She will mobilize towards the beginning of next year, and currently there is a six months delivery window.
That will narrow as we go forward, and we'll sort of keep you informed when the commencement of that contract will start. The contract value is between $75-$100 million, depending on whether the options are declared. And as I said, the execution is expected to happen fairly soon. I would say sort of within August, we expect to sign a final contract. Likewise, for the Safe Caledonia, she has entered into an LOI, or we have entered into an LOI with the Ithaca Energy in the U.K. for the Captain Field, and that will be a 6 months firm period with options of 3 months. And there, the contract value is between $23-$37 million.
We need to do the SPS and reactivation costs on her as well before we start, and we expect to execute that contract also within April this... No, sorry, within August of this year. When it comes to the markets, we have sort of defined that to be so that the active competing supply. So the total market that we are competing with is 23 vessels. That is up one vessel in a quarter, and that's due to the Safe Zephyrus that has been delivered. So this is very much sort of the what we see as supply. But you should note here, the demand picture here is vessel years. Of course, there are mobilizations, they are off hire, there are, you know, there is work.
So when you reach a utilization, I'll show it on the next graph, of, you know, 80%-90%, it's more or less fully utilized. So this is not comparing really, really apples with apples, it's vessel number versus the vessel years. So I think that this is it looks very favorable going forward, especially when you see the trough in the early twenties here. So this is based on what you saw on the previous graph, what this will actually look like going forward in terms of utilization. So you can see we are actually back to levels that we saw 2014, 2015, in terms of utilization, and then time will tell what that will mean in rates. But way back then, I mean, we saw rates of $175,000 in Brazil and over $300,000 in the North Sea.
So this is sort of the picture. In addition to the 23 vessels, there are actually 6 vessels that could come in and add to the supply here. That will change the picture somewhat. But of those 6 vessels, we control 3 of them, 2 new buildings and the Safe Scandinavia that is in lay-up. So we feel that we are well-positioned to capture this, and of course, you know, the utilization will be affected by entry of new vessel, the 6 potential vessels. But it also, we haven't sort of factored in any sort of scrapping or deletion of any vessels here. So Brazil is by far the most important market. The big driver in Brazil is the increase in production. They are talking, you know, currently they produce about, in total, about 3 million barrels.
They are planning to increase that to between 5 and 6 million barrels in 2030. Whether that's happening in 2030 or somewhere thereafter, time will tell. But this is sort of the main driver, and is very much a FPSO market. So we see that currently there are actually 19 FPSOs on order, and we expect sort of additional pipeline of 20 FPSOs. This week, Petrobras came out with a tender for four new FPSOs, so this is going to sort of. It's moving forward. And in order to reach sort of the production goal of 3, 4, 5, 6 million barrels, this is actually something that needs to happen.
But also what we see when we do sort of a deep dive into when are the sort of bigger FPSOs starting to utilize accommodation vessels? Petrobras in particular start to do that 2-3 years after they have been delivered. So it's very much a preventive maintenance strategy that they have, and that's gonna drive demand for accommodation vessels going forward. So we see that, you know, going forward, currently there are about 10 accommodation vessels in Brazil. We see that that can increase with 3-5 vessels going forward. So as strong, this is going to be a market that is gonna drive the accommodation market going forward. And we just indicated that it's not only Petrobras that is active in this market.
We have the lease operators like MODEC, SBM, Yinson, but also the smaller E&P companies are now starting to sort of indicate that they need accommodation vessels going forward. When it comes to the North Sea, currently there are five units operating in the North Sea. That's up from three last year. In 2023, it was actually the first year ever there was no accommodation vessels operating in the UK sector, and that is very much due to sort of the tax regime that they have introduced in the UK. But this year, we see more, we see units also active in the UK sector. That's, going forward, I think this is gonna be a fairly stable market. Might pick up a little bit towards 2026 as the hookup of the sort of especially the Norwegian projects are coming online.
But we see this to be a steady market going forward. UK, there is a sort of a unfavorable tax regime, but also, you know, the assets there are also, they do need maintenance of those vessels. And in Norway, we also see further potential for electrification coming into the latter part of this decade. I would say that the market-wise, the market in Norway now is approximately, you know, $150,000-$200,000, and in the UK, $125,000-$175,000. Rest of the world, this is a little bit of a mixed bag. Everything from... You know, you can see high rates in Canada, up to $300,000, to more sort of second-tier work in Africa, about $100,000 per day.
But there is sort of more, there is scattered demand throughout. I mean, in Australia now, there are 2 vessels operating next year. So we actually see that there is a, there is a steady demand also going forward in, in the for the rest of the world. And, you know, there's gonna be like 3, 4 vessels is gonna operate in these markets. It's more difficult to predict, and of course, the markets, the rates are, are depending on where you operate. But so this is also sort of part of the demand picture going forward. This you have seen before, but I think it's an important one. Well, you know, currently, in this quarter, we made $6.6 million of EBITDA.
But if you sort of annualize that based on if you have reset all our vessels to the current market, we would have had an EBITDA today, you know, if all the vessels have been activated, except for Scandinavia, of $125 million. So this sort of shows the earnings potential in the current market. And you then, if you then go back to what the market was back in the peak, we would have made $200 million of EBITDA. And in a growth case, you know, if the sort of the utilization sort of proves to come through the way we hope and believe, there is a significant earnings potential. And likewise, then you see sort of that earnings compared to our debt level.
So the earnings capacity is there to service the current debt level. Again, just comparing this to other sort of some other segments of the markets, you can see that the vessels EV, compared to replacement value for our segment, or at least our company, is very favorable. And when it comes to EV, compared to what sort of the underlying broker values is favorable and also compared to new building parity. If you say that the two most modern vessels are worth 350 a piece, so you know, the total value, the sort of new building cost of our fleet, yeah, I would say is between, as is indicated here, $1 billion-$1.5 billion. So even on that basis, that matrix, we are very favorably valued.
Operations, again, as I said, very stable operation during the quarter. We have had, more or less 100% utilization on the Safe Concordia, very high utilization of the two rigs - the three rigs in Brazil, and the letters of intent for Safe Boreas and Safe Caledonia will then come into the market for, for next year. So you see here in, in the sort of the very last quarter of this year, there's a predicted slight decrease in utilization. That's because here it is only firm backlog, so we are not included the extension of the Concordia. So this is a nice graph to show. I mean, hopefully, these letters of intent will be materialized.
We have high hopes and expectation that that will happen, so finally, we can actually show an increase in our backlog, so a 56% increase if you include all the options in this quarter compared to the last quarter. We're also in discussion with Petrobras regarding extending the Safe Zephyrus in Brazil, under the current contract. Reese, do you want to take us through that?
Thank you, Terje. I'll take a quick run through the financials here, for the quarter. Looking at revenue, I think revenue and EBITDA has been very steady. As Terje mentioned, we had four rigs on operation, very high uptime, and I think we were also able to keep the cost very much under control. Looking at very steady revenue picture and also on the EBITDA, hovering around about the $7 million number quarter on quarter. I guess looking ahead briefly in the remaining quarters of 2024, as Terje said, expecting the extension on Concordia, we think that the revenue and the EBITDA picture will, will continue to be relatively stable.
On the income statement, other than, of course, the positive development of revenue driven by the higher utilization, I think it's important to note also that the interest level has stabilized out. Of course, we've all seen the increase in interest rates. We have a flexible, interest rate, picture on, on, on our balance sheet, so we, we're not hedged. So as the interest rates went up, we saw an increase in cost, but that has obviously stabilized out, and let's see how that develops in the future. But quarter, quarter on quarter and half year on quarter, pretty stable, and of course, a large increase in the overall result, year on year, driven by having, having these vessels, on stable operation. Balance sheet, I think the main issue on the balance sheet is actually related to cash flow.
That continues to be our main focus area. There has not been too much, too many other material changes in our balance sheet picture. So looking at the cash flow, was a positive quarter cash flow-wise. Important to note that the majority of that increase was driven by prepayment received with respect to Boreas. I think that's a very positive development that we're seeing in the market and links very much with the increase in utilization across the accommodation spaces, that we see that clients, probably for the first time since, you know, the last decade, 2013, 2014, we see clients willing to actually pre-fund or pay in advance significant sums. And we already have received the first portion of that with respect to the Safe Boreas, so that was a significant portion of the net working capital change.
I think looking ahead, our focus is shifting very much to 2025 and the liquidity picture. As Terje said, we see that we have liquidity and headroom to the covenant into Q2, Q3 next year, and the focus is very much on investigating and continuing to follow up on measures to, to improve that liquidity picture. It's driven largely from reactivations. We have secured these LOIs. We need to reactivate those rigs. That's a very positive story, of course, but in addition, we see that at the same time, we have to do the SPSs on the vessels in Brazil, and we're coming up against the thruster overhaul.
So 2025, as Terje said, we see a picture of $80 million in potential CapEx reactivation spend, which of course is a large- quite a large number, but, but a significant portion of that on the back of good news, which is, which is that the market is improving and we're getting the rigs out. So with that, I'll hand it back to Terje to wrap it up.
So to sum it up, performance, operational-wise, has been good, both safety and uptime in the quarter. Though, of course, we are very excited about the LOIs for the Boreas and the Caledonia going into 2025. It's been quite a while since we actually have secured new contracts, so we are encouraged by that and positive that they actually will be executed. Again, if we then can do the extension of the Safe Zephyrus, you're talking approximately... You know, we're discussing about approximately two years extension, that will, of course, improve our backlog for further. We think that the markets, as I alluded to earlier, is very favorable, and this is gonna be driven very, very much by the Brazilian market.
The other sort of segments in the market in total, we see a stable demand, but the demand coming from Brazil is going to sort of drive utilization going forward there. We do see inquiries from clients both in Norway and the UK. Actually, in the UK, also for 2025, it's gonna be a quite a challenge for them, but we see also the inquiries for work in 2026, both in Norway and UK, and we think that, you know, UK is also going to be an important factor due to the aging infrastructure in the UK. And again, we, of course, we are acutely aware of our liquidity situation.
We are managing that, very much focused on it, and the runway we had, as we have said earlier, is into Q2, Q3 next year, both in terms of, you know, also in terms of, of covenants. So this is something that we are managing, and we are looking at ways that that can sort of be dealt with in good time before we get there. So I think that is summarizing sort of the what we have to say. We are more than happy to take any questions, either from the room here, or if you have, you can sort of send it in the chat, and then Reese can read them up. I don't know if, Reese, you have received any?
No, we haven't received any-
Mm [crosstalk]
... any questions so far, so any questions in the room?
Yeah.
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[audio distortion] Yeah, Bård from Pareto. On Caledonia, after the current contract, can you update us on the outlook there?
Yeah, I think, Caledonia is a vessel that is very sort of, suitable for the UK market. So, in going into 2026, I think that's sort of the natural home for her. She is a moored unit, so she, you know, she has thrusters, but she cannot... no DP, so she will have to be moored. And that's the UK market is something where, where she can actually work. So we, we do have a dialogue with clients for 2026, and, she is actually starting to work for Ithaca 1st of June. So there, you know, potentially, there could also be a window before that. So, I mean, so there, again, there is demand.
We see that for both the 2026 and thereafter, but there are also sort of a, you know, 2025 is not totally closed out yet. Let me put it that way.
Following up on Concordia-
Mm. [crosstlak]
- in the Gulf, upcoming SPS, that's quite expensive. It's not the highest earning vessel. What's your latest, thinking there?
The thinking on Concordia is very much in line with what we said last quarter. So she, hopefully, she will be on contract until February, then she's due for SPS in March, and you know, it's a significant sort of CapEx amount that need. We need both SPS and life extension. So our thinking there is, unless we can sort of secure a contract that can justify that CapEx, she will go into lay-up. I mean, In the current circumstances, we are not going to spend that cash unless we have visibility on the earnings for her and the cash flow.
And from the outlook for that, or I mean, as you said, you have quite a few clients now aware of their need to-
Mm. [crosstlak]
To pay upfront if they want to keep vessels. So just on the outlook there for, I don't know, maybe the current client-
Mm. [crosstlak]
or other clients, what's the dialogue?
With regards to Concordia you mean?
Concordia, yeah.
Yeah. Concordia is, again, an older unit. She is more suitable for U.S. Gulf, West Africa, those kind of markets. I mean, it's not comparable to the Boreas or the Zephyrus in terms of sophistication. She's DP2, you know, she doesn't have six thrusters, so there's a little bit sort of limit. So it's more a Tier 2 rig, I would say, a Tier 2 vessel. But we do have a dialogue, but we, again, need, and with our current financial position, we need a significant upfront payment for that to make sense. But yes, we do have dialogue with different clients, but I don't want to sort of oversell that at the current moment. So the base case is that she will go into lay-up.
Continuing on Zephyrus Brazil, we're right to assume that for Petrobras to give an extension outside of their ordinary tendering, there needs to be no change in the scope of the contract, and the day rate would sort of have to be flattish?
I think flattish is probably. Let's see. But again, it is part of the ongoing discussion. So clearly we have ambitions, and then the question is whether those ambitions will be met.
Mm.
I think that's the best way to summarize the situation when it comes to the Zephyrus.
Yeah.
Mm.
Understood. Thanks.
Mm. Okay. Anything else, Reese?
No, no questions.
Okay. Well, thank you very much for attending this presentation.