Brazilian Foresea releases first annual report

Foresea, Brazilian leader in the offshore drilling segment, released its first annual report, with the financial and operational results achieved last year. The company consolidated a healthy financial position, ending the period with US$141 million in cash and a profit of US$65.8 million.

Operational performance is also a highlight: the company maintained operational uptime of 98.2% in the last three years, reinforcing its leadership in offshore drilling. “I couldn’t be more proud of how much we have achieved since the formation of Foresea”, celebrated CEO Rogério Ibrahim. “We have a motivated team, which allows us to achieve this operational performance. We managed to secure another important contract for Norbe VIII last September and we have just extended the ODN II contract with Petrobras, a recognition of the company’s confidence in our ability to perform” .

Rogério Ibrahim also highlighted the significant investments made in the Foresea fleet in 2023. ODN I underwent robust maintenance, in dry dock, which was unprecedented in the country and strengthened the integrity of the asset, and Norbe VI was prepared for its new contract in the fourth quarter.

For the CEO, the drilling market presented favorable conditions during the year, with the gradual increase in daily rates for floating units and longer contractual durations. “Brazil is one of the most attractive markets for offshore activities: the number of contracted UDW platforms (for deep water exploration) has increased from 28 in 2022 to 35 in 2023,” he added.

Ibrahim says that Foresea, with its fleet 100% contracted until the end of 2024, enjoys a special position and “has its level of excellence recognized, which will allow it to take advantage of the positive market in the region”. The company was highlighted as the best Brazilian operator in the Petrobras 2022-2023 Operational Excellence Program (PEO-Sondas).

Results 2023

Contracted drilling revenues for 2023 totaled US$363 million compared to US$377 million in 2022. The 2023 results were mainly impacted by the maintenance of ODN I after 10 years of activities, and the suitability of Norbe VI for its new three-year contract with Petrobras. This maintenance was reflected in the total fleet utilization rate: 86.5% in 2023 compared to 91.8% in 2022.

Total Capex for 2023 was approximately US$100 million – higher than the previous year’s investment. The increase in Capex is also, to a large extent, a result of the adaptation and modernization services of ODN I and Norbe VI.

Financial leverage was one of the company’s most positive highlights for investors: net debt/EBITDA was below 2x at the end of the year, a substantial reduction compared to a year earlier, when the ratio reached 18x. This Net Debt/Ebitda index in 12 months measures the company’s level of debt: the result corresponds to the years of cash generation needed to pay the debts: the lower the better.

Highlights:

• Fleet 100% contracted and in operation;
• Contract portfolio (backlog) of US$ 1.8 billion;
• Total contracted drilling revenues of US$363 million;
• Revenue efficiency: 95.4%;
• Cash position of US$141 million.

About Foresea

Foresea offers offshore drilling solutions and has its own fleet made up of rigs ODN I, ODN II, Norbe VI, Norbe VIII and Norbe IX, all with active contracts. The company has APIQ2 international quality and efficiency certification for its entire fleet and has the highest operational uptime index on the market.

It operates in deep and ultra-deep waters for the offshore upstream Oil and Gas industry in Brazil and abroad. Among its main values are the high operational performance achieved with respect for the safety of members and the environment, as well as partnership and customer trust. The company respects ESG principles and follows the most rigorous environmental, social and governance practices. More information: http://www.foresea.com.