Welcome to the Q1 2025 presentation for Prosafe. The last quarter, or the last, you know, this year actually has been a very positive and active year for the company, and we have reached several milestones. Just the covering operation has been good in the quarter, so no sort of unexpected events. Last, we have fixed, as we have announced earlier, the Safe Zephyrus for another two and a half years in Brazil. That was an extension of a current contract. That means we do not have to go in and do sort of cleaning of the hulls. It is going to, actually has gone straight on to the new contract or the extension of the contract at a slightly higher rate. We did sell the Safe Concordia and Safe Scandinavia in the quarter. That means that we are now left with the five core vessels.
We are working on reactivation of the Boreas and the Caledonia. Of course, I will come back to the Notice that we are in very good position to extend the contract or renew the contract for Notice for another four years. Numbers were fairly stable versus where we should be, and the cash position is quite strong. We will come back to that. I think, you know, what's the achievements in the quarter and, looking forward, I think all the activity we see both in Brazil and West Africa, for that matter, and other places, the market is, you know, we've talked about this for quarters, if not years, that it is improving, and that is now coming through. To dwell a little bit on the refinancing. We have now agreed the refinancing. We have a consensual deal.
All our lenders have agreed to this, and it passed the EGM last week. We need to wrap it up, and right now it looks like early Q3 is when this will close. That means that we will convert $193 million of debt into equity. That will result in 321 million new shares, just versus the 17 million that's currently outstanding. In addition to that, our current shareholders will then get a warrant for a nominal value to subscribe for one additional share. The number of shares, of course, following this, depending on the uptake of the warrants, will increase significantly. This is, as I said, a fully consensual deal, and we are now moving forward on the closing of this.
Part of the transaction is that we will have, the current lenders will inject $75 million of new liquidity into the company. That means that we have, you know, a fully funded business plan. Now we have the capital needed for all the CapEx going forward and everything. We have sort of a significantly improved balance sheet. Our net debt following this transaction will be $220 million. That is compared to sort of like for like end of Q1, $366 million. About $150 million net reduction of net debt. The debt will then be tranched in different tranches. We have the Eurus facility is unchanged. Then we have a senior facility of $75 million. Then we have a super senior facility of $150 million. Part of that is a new cash that is coming on in of $75 million.
As I said, we are working to close this and, beginning of Q3, that is sort of the timeline currently. I will just say that, you know , very happy with this. Of course, the support the lenders have shown us, and not least the shareholders, that we managed to get this. The shareholders actually agreed to this. We signed them up prior to the EGM. Very happy with both the engagement and the support that our, you know, the wider stakeholders have given us. This is then how it looks going forward. I mentioned that the Zephyrus, she is on to Petrobras at $115,000 per day. The Eurus is on to Petrobras as well and until 2027. She is on to about $86,000 per day.
The Notice with this renewal, as you can see, the backlog is, I'll come back to that, but that's quite strong. The Safe Boreas is actually leaving Norway today. She is on a heavy lift in Bergen, and she's heading to Singapore. She will then commence the contract between November and February in Australia. That is all going according to plan, time-wise and also sort of CapEx-wise. She is on schedule. The Safe Caledonia, likewise, she's been reactivated as we speak. She is due to go on contract 1st of June. Again, according to plan. It has been a very active quarter for Prosafe, both in operations and the reactivations. The Nova Vega, there is nothing new there.
They were not part of the restructuring, the Eurus facility. That is unchanged. As you can see, the Concordia and the Scandinavia are now exiting. Actually, they have both been delivered to their new owners. Turning to the market, if you add this up, this adds up to 27 units. I will show you a little bit more granular how we sort of build this up. We used to say that the total supply here is 23, but we have seen a latent supply coming into our market recently. I will come back to that. This is where the units are as of today. As you can see, in Europe, there are six units.
That includes the Boreas that then will leave for Singapore and Australia, you know, this quarter. This is a picture what the way it looks today. As you can see, there are a number of units in Asia. That's the reactivated units, the High G 3, the High G5, the Stavanger Spirit, and the Greta that we see is coming back into the market, increasing sort of the total supply here, active supply from 23 to 27. In South America, that includes Guyana. There are currently 11 vessels in Brazil and one vessel in Guyana. This is sort of the picture. In West Africa, we see increased activity as well. Currently there are actually four vessels or units operating in West Africa.
This is again, more granular than we usually show, but this is how we look at supply. We have divided into active supply and latent supply. As you can see, some of the latent supply have moved into active supply. That is really sort of the three units in China, High G 3, High G5, Greta, and Stavanger Spirit. That is for all practical purposes. Then, of course, the Reliance that used to be in layup have now also been reactivated into active supply, while the Scandinavia has gone out altogether. This gives a bit more granular picture of what we see as supply. As far as Prosafe is concerned, we are still the biggest operator. We have a 20% market share of the total fleet.
We are by far the biggest operator in Brazil with 25% market share. We control two of the four vessels that we define as latent supply. That is the Nova, Vega, the options we have in China. Turning to the market again, this shows data points since 2006, both in Brazil and in the North Sea. As you can see, there is a significant trend upwards here. The Notice is the latest data point here in Brazil at the rate that we have alluded to $140,000 per day is the equivalent rate if you normalize it. That is a good, there is, the higher data point here is a shorter term contract in Brazil. It is not like for like.
If you look at the last three years, you know, the average length of the contract in the North Sea is six months, while in Brazil it's 26 months. Of course, that's the seasonality of the North Sea market versus sort of the longer term nature of the Brazilian market, so that's sort of the comparison here. There has been good activity this year. Year to date, we have seen over $800 million of awards or contracts that include sort of the notice and the, you know, the High G 3 and the High G 5 has also been declared winners of Lot 1. Just to remind people, Petrobras came out earlier this year with a tender for two lots, Lot 1 and Lot 2. Lot 1 was up to two vessels.
Lot 1 was up to two vessels. Lot 2 was up to three vessels. In Lot 1, they have declared two winners, the High G 3 and the High Sheet 5. That is why we have taken them from sort of what we define as latent supply to active supply. They are now actively competing in our market. For Lot 2, Notice has been declared the winner. They have said that there might be additional declaration in Lot 2. That is something that, a process that is still ongoing. After you are declared the winner, you need to be awarded a contract. This is the Petrobras process. I think we are in very good position, but just, you know, we have not sort of been awarded a contract yet. That normally takes, you know, a month, maybe longer.
That is sort of our estimate that we, you know, if everything goes according to plan here, we will be awarded a contract. That is when this is a firm deal. There is also another contract, another tender out in Brazil for a shorter contract at a lower spec unit. We also see that there is a good process there. We do not participate there, but we think that is also a contract that will be awarded, let's say, not in the too distant future. Outside of Brazil, we again see good activity, as I mentioned, in West Africa. There are a number of units inactive in West Africa today. There is still a number of, sort of tenders that is outstanding in West Africa. I think that is a market that is quite interesting. Also, Guyana going forward, there is one active vessel there.
We see sort of more demand in Guyana. Of course, Australia for next year is going to be quite active. Actually, for a short period of time, there is going to be three vessels operating in Australia next year. Turning to operation again, safety. We have good safety records. However, we had one LTI in April after the quarter. Otherwise, the vessels that are operating in Brazil have 99% uptime. This is more or less according to what they have been doing for the last years, actually. I mentioned the Safe Concordia and Safe Scandinavia. Also, as mentioned, the Caledonia will then go contract 1st of June. The Boreas between 15th of November and 15th of February, that's the window when she will go on contract.
Backlog, you know, we have focused on two things the last year and a half. One, building backlog. The other is refinancing. I think on both those two sort of main topics for the company, we are quite happy. You know, more or less two and a half X on the backlog compared to the same quarter last year. The current backlog, assuming that we are awarded the Notos contract, is at $545 million. This is something that is, you know, very happy about that. You see also the rates that we see. Just to give you a picture, the Notos current run rate for Notos ABTA, you know, based on the current contract is about $6 million. The new contract will be about $28 million. I mean, it is a significant uplift in contribution to the company going forward here. Reese, do you want to go through the numbers?
Very good. Thank you, Terje. Yeah, I'd like to walk a bit through the numbers. I think as Terje mentioned, it was a very stable quarter, Q1. If we look in Brazil, we had the three vessels all operating all at 99% uptime. It is a very good revenue contribution and also a very good EBITDA contribution. If you look at the Brazil vessels, I think they're contributing in the quarter about $8.5 million in EBITDA from the Brazil vessels. Also in the quarter, you know, we were very happy that we could dispose of the Concordia. That was a good benefit in the sense that we didn't incur the demobilization costs related to that. We also had good revenue and good EBITDA contribution from the Concordia up until she ended that contract on the 9th of March.
Coming against, I think the good EBITDA contribution that we had from Brazil and from the Concordia in the quarter was, of course, the fact that we're reactivating the Boreas and the Caledonia. We did incur approximately $3 million in sort of reactivation cost in the quarter in getting those vessels off. All in all, we're very happy, I think, with the results, good operations. I think we managed also with these disposals to reduce sort of the run rate burn. Looking a bit to the income statement, a bit few of the lower lines, I think the big music in the income statement is obviously the costs which we are incurring as part of this refinancing. We incurred approximately $3.6 million in cost in the quarter related to the refinancing.
I think we've been pretty consistent. We think this process is going to cost us, you know, just north of $15 million in total. We had some costs associated with it last year. Of course, that $15 million includes also some success elements. I think we're still within that kind of ballpark range, maybe just slightly north of the 15. We were very happy that we could get this to be a consensual process. I think as many people who've been through these processes, they can be much more costly than that. I think we were quite happy with how we'd managed that process. Also some exchange differences here. There's quite some swing, I think, particularly in the real, in the quarter.
The balance sheet, I think Terje also mentioned, obviously the balance sheet's going to get a significant overhaul with the conversion of $193 million. We're expecting, as Terje mentioned, the net debt coming out of the process to be around about $220 million, which is obviously a significant reduction from where we are today. I think cash flow, cash flow is obviously for me the most interesting aspect, looking ahead. We had a significant amount of prepayments which we received in the quarter. We have negotiated some very favorable contracts, with Boreas and also with Caledonia that we're receiving a significant portion of money upfront, which is covering our, the cash that we're having to incur on the reactivation.
You see that they matched up quite nicely this quarter. We received about $21 million in actual prepayments from the clients with respect to those two units. We spent $21 million as well on the CapEx. Of course, also we had in here some of the proceeds received from Scandi. We hadn't delivered her yet. Some big working capital swings in the quarter as we, you know, as we're receiving money for these contracts and we're paying money out in CapEx. Obviously when we look ahead, working capital and the cash flows is going to be, I think, a key thing to keep in mind when looking at Prosafe, because of course the money that we're receiving in advance, we've received the cash now, but the profit is going to come later.
I think we're going to see some differences there going forward. Generally I think we were quite happy with how we were able to manage the cash flow. I think if we roll back a few quarters, we thought the quarter would be significantly tighter. We have managed, I think, to do well in disposing of the vessels, getting these prepayments in. And I think we have also, as you see sort of in the back, the Zephyrus SPS has moved back in time. That has also given us a little bit more breathing space on the cash flow and the liquidity in the run-up to the refinancing, which again, we think should be wrapped up here in early Q3. With that, I'll hand it back to Terje to wrap things up.
I guess we'll take questions, right? People, yeah. Yeah, are we taking questions, Leena Yeah. If people have questions, you know, just send them, send them to Reese and we will answer it here if there are from online. This is, again, very active quarter, very happy to have delivered on some major milestones. We are sort of the market leader still in this after the divestments, but we are still the market leader in our little niche of the market. I think we have also good access. We do have good access on new buildings, if, and that is something that we will look closely at going forward after the refinancing with the two vessels in China. I think we talked about Brazil a little bit today.
We talked about it earlier. I think that is going to be sort of the main driver also for this market going forward, more or less, you know, less than just under 50% of the active fleet is in Brazil. There is no reason to believe that Brazil, I mean, with everything going on there, is not going to drive this market. The recapitalization means that we have now, as I said, a fully funded business plan. Very happy with that, and sort of ready to go into the next phase. What we see is that also now the higher rates are sort of flowing down to our P&L as a proxy to Notos and going from $6 million EBITDA contribution to $28 million. I mean, I think that speaks a lot, and that's what we have been speaking about for a long time. Now it's actually happening.
That together with Boreas going on contract, the Caledonia being reactivated. We see that, finally, you know, some of the prospects are converging into cash flow going forward for Prosafe. That is what we had on the agenda today. I do not know if there are any questions, Reese?
Yeah, there was a couple of questions here. One of the questions related to how is Prosafe positioned with respect to the longer term contracts, which you mentioned, and in particular West Africa?
I think, you know, our capacity, the only capacity we have now is for Safe Caledonia. Safe Caledonia is a moored unit. As a moored unit, she is not ideal for West Africa. If she is to be a player in West Africa, then we need to reactivate the DP system on the Caledonia. Of course, that's something that we are constantly looking at. That's, you know, a CapEx element. That's sort of, for West Africa for us, that's sort of the really, at least in theory, the only capacity we have for West Africa. Of course, there are shorter contracts otherwise. I think that that's how we are positioned. That's more of a, yeah, a big picture view on that. Yeah
There's a couple more here. Any commentary on Safe Nova and Safe Vega, likelihood of them being delivered?
I think that, you know, as the people that follow this market closely, you have seen that we actually bid them in to Brazil in these tenders that were out. The rates that we bid them at is also an indication of what we need to reactivate those vessels. You know, as we have said previously, we do have a financing arrangement with the yard. That used to be a longer term financing arrangement. I think for us to take delivery of Nova and Vega, we need to renegotiate the financing arrangement. I think that is again something that is post refinancing. We will really look very closely to see if there is a way, I guess, on the back of a longer term contract that we can get an appropriate financing arrangement in place to reactivate. Clearly, that is our ambition.
The final question here is, how do we see the outlook for the North Sea?
Yeah, the North Sea, we see that, in the U.K., there is, for 2026, not that much demand. We see that there are a couple of, in, yeah, fairly low visibility for 2026. I think there is better visibility for 2027 in the North Sea. In Norway, I mean, the old activity that has happened in Norway with the tax incentives after the COVID, that is playing out now. There are still some demands also further out. You know, we are talking demand in 2029, 2031. There is going to be activity in the North Sea. You know, I think the gravity, you know, is good. You know, what we have seen has changed to Brazil.
We see that sort of that gravity is continuing. Brazil is going to be the market, but there's always going to be demand for sort of a, you know, five vessel plus minus in the North Sea. Okay. Any questions from the audience?
That was it.
If not, thank you very much for attending. We look forward to presenting Q2 in after the summer. Thank you.