Listed accommodation provider in good shape for market recovery

摘要

Prosafe remains the only listed pure play offshore accommodation company in the world and has been through a process of restructuring that has seen it streamline operations significantly. In a recent presentation, it highlighted the fact that key market indicators are positive - the oil price is up (Brent crude was at US$68/barrel as of early January 2018), breakeven levels are down and the oil industry is cash positive. Moreover, as a mid-to-late cyclical company, Prosafe should benefit from several demand drivers across the value chain in a recovering market. It has achieved a significant reduction in run rate and recognised impairment charges in Q3 2017.