UPDATE 1-Prosafe Q2 profit tops forecast, outlook upbeat
(Adds details, quotes, share price)
OSLO, Aug 28 (Reuters) - Norwegian oilfield services group Prosafe (PRSO.OL) reported a bigger-than-expected 65 percent rise in operating profit for the second quarter on Thursday and said the fundamentals of its rig markets remained very strong.
Earnings before interest and tax rose to $63.4 million in the three months to the end of June from $38.5 million in the same quarter a year earlier, Prosafe said, calling it the best quarterly result ever for the continuing operations.
The result beat an average expectation of a rise to $60 million in a Reuters survey of six analysts whose estimates ranged from $46 million to $66 million.
Prosafe has a fleet of service and accommodation rigs after spinning off its floating oil production business this year.
Prosafe said the improvement in earnings reflected higher utilisation and significantly higher day rates for its MSV Regalia and Safe Bristolia rigs and said the overall fleet utilisation rose to 99 percent from 88 percent.
"The drivers in the accommodation market remain very positive," Prosafe ASA said in a statement.
"Within the harsh and semi-harsh environments, where Prosafe's accommodation rigs operate, there is a tight supply-demand balance and the number of newbuilds to be delivered over the next few years is limited," it said.
Soaring oil and gas prices have spurred petroleum activity around the globe, lifting the oil service sector broadly.
High offshore exploration and drilling activity would lead to development of more fields and tie-ins of satellite fields, Prosafe said.
"These field developments are expected to lead to higher demand for labour offshore, and thereby increasing demand for offshore accommodation rigs," the company said.
Prosafe shares traded up 1.7 percent at 47.80 crowns by 0705 GMT, outperforming a 0.1 percent rise in the Oslo bourse benchmark index .OSEBX. The price values the company at about $2.06 billion. (Reporting by John Acher, editing by Will Waterman)
