SeaBird Exploration issues profit warningCompany News // February 6, 2012
SeaBird Exploration PLC says vessel utilisation in the fourth quarter 2011 was 60 per cent, excluding the ocean bottom node OBN operation which was divested in the quarter.
"The achieved utilization rate was lower than expected. There are several reasons for the reduced utilization, among the primary reasons are delayed startup dates on firm contracts and contracts materializing to a lesser degree than forecasted," said the company.
Due to the vessel utilization rate and multiclient sales being lower than expected, the company expects EBITDA in the fourth quarter 2011 to be in the region of US$0-2 million, which is lower than previously expected.
The expected fourth quarter results will have an adverse impact on the company's working capital going into the first quarter 2012, and the company's liquidity is expected to become strained in the first half of 2012.
Furthermore, the transaction costs from the restructuring in the fourth quarter of 2011 exceeded the company's forecasts.
The Board of Directors believes the company will be able to continue its operations as usual, but have initiated processes to address the situation.
Such processes will include potential sale of multiclient data, the completion of which will realize values and have an immediate positive effect on the liquidity situation.
Further, the company will seek easements in financial creditor terms, reduce capital expenditure and implement operational cost reductions.