Polarcus: market remains challenging - multiclient projects delayedCompany News // May 16, 2014
Polarcus Limited has announced details of its first quarter 2014 financial statements.
The company said it had revenues of US$121.4 million, EBITDA of US$39.6 million and EBIT of US$16.9 million. Net cash flow from operations was US$55.9 million.
The company's order backlog as of the end of April was US$250 million.
During the quarter the company completed propulsion upgrade and increase the number of streamers on Polarcus Naila from 10 to 12.
The company said the effects of the challenging market conditions at the end of 2013 spilled over in to the start of 2014, as it recorded lower revenues during the quarter compared to the same quarter the previous year. The yard stay for Polarcus Naila and standby between projects for Polarcus Alima resulted in reduced utilization.
Multi-client revenue during the quarter was lower than expected as oil companies have maintained a cautious approach following the opening of the UK 28th licensing round in January.
Some of the anticipated multi-client sales following the second tranche of the UK 27th licensing round announced at the end of last year have also been delayed.
Despite the fall in revenue the company has continued to deliver excellent operational performance, with very low technical downtime and a reduction in operating costs compared to the first quarter of 2013.
The reduction in net profit was significantly less than the decrease in revenue as a result of the company's reduced costs due to reductions in both operating and financing costs compared to the same quarter last year.
Commenting on the results, Rolf Rønningen, CEO of Polarcus, said: "The weak market reported in the fourth quarter continued well into the first, resulting in lower revenues across both Contract and Multi-Client business lines.
"We took advantage of this period to upgrade Polarcus Naila, bringing her into line with our A-class fleet and thereby significantly increasing her earnings potential going forward.
"We also maintained our focused investment into our highly-regarded UK multi-client library and secured industry prefunding for two exciting projects to commence next quarter, including a major new programme offshore Ireland.
"Throughout the period the continued strong performance of our marine operations has provided a rock solid foundation for our business whilst our broadband offering, RightBand, has gained good traction with clients, promising to present new opportunities to grow our backlog."