The Financial Supervisory Authority of Norway has completed a targeted review of Prosafe SE’s 2024 annual report, focusing on IFRS impairment indicators for the company’s rigs and the presentation of an “order backlog” measure outside the financial statements. The review found weaknesses in note disclosures on management’s key judgements about whether there were indications of impairment and shortcomings in disclosures for the “order backlog” metric under the European Securities and Markets Authority guidelines on alternative performance measures (APMs). Prosafe has stated it will address the points in future reporting, which the supervisor has taken note of. Prosafe’s rigs had a carrying amount of USD 356.5 million at 31 December 2024 (83% of total assets). While the authority highlighted significant uncertainty around the impairment-indicator assessment given factors including negative operating results and net cash flows in 2023 and 2024, strained liquidity and a sustained decline in market capitalisation, it did not pursue the question of whether impairment indicators existed at year-end; instead it concluded that the 2024 notes were too generic to explain how those factors were weighed against assumptions such as dayrates, utilisation and new contracts, as required by IAS 1.122. On order backlog, the financial statements reported remaining performance obligations of USD 225.4 million, while elsewhere the annual report referenced USD 370 million with inconsistent labels and an incorrect date driven by post-balance-sheet adjustments (including an option exercised on 9 January 2025 valued at USD 109.7 million); the authority assessed the APM disclosures as lacking clear definition, reconciliation to IFRS figures, explanation of use and comparatives, and flagged inconsistency in adjusting for events after the balance sheet date. Prosafe is required to provide the authority, within two weeks after publication of its 2025 annual report, a written account of how order backlog APM reporting and any significant-uncertainty impairment disclosures have been remedied compared with 2024. The supervisor also reminded the issuer to consider its handling of the information under the Market Abuse Regulation rules on inside information.
Norwegian Finanstilsynet 2026-04-16
Financial Supervisory Authority of Norway closes Prosafe SE 2024 annual report review and presses for clearer rig impairment judgements and order backlog disclosures
The Financial Supervisory Authority of Norway has completed a targeted review of Prosafe SE’s 2024 annual report, identifying weaknesses in note disclosures on impairment indicators for its rigs and shortcomings in “order backlog” alternative performance measure reporting under ESMA guidelines. It highlighted generic explanations of key judgements under IAS 1.122 and inconsistent, poorly defined order backlog figures relative to IFRS performance obligations. Prosafe has committed to address these issues in future reporting and must report back after its 2025 annual report, with the supervisor also reminding the issuer to consider Market Abuse Regulation requirements on inside information.