Polarcus responding to "uncertain" marketCompany News // April 30, 2015
Polarcus Limited has released its first quarter 2015 financial statements.
Highlights in the first quarter 2015 include:
• Revenues of US$81.1 million down 33 per cent from same quarter the previous year
• Multi-client sales of US$36.7 million with prefunding ratio of 80 per cent
• Gross cost of sales of US$68.7 million down 13 per cent from same quarter the previous year
• Improved liquidity position by US$59 million following an amendment agreement with the banks
• Extension of maturity of the US$125 million convertible bond by two years to 2018.
"The current market environment can be best described as uncertain, as oil companies have continued to reduce or defer spending commitments making for a highly competitive landscape," said Rod Starr, the company's CEO.
"In response, we have stayed true to the 2015 Agenda I announced in February; building backlog, reducing costs, and managing our balance sheet. This focus included the difficult yet necessary decision to cold stack Polarcus Nadia at the end of the quarter.
"Our agenda is starting to deliver," said Mr Starr. "Backlog visibility has grown to 70 per cent for the year, costs are down 13 per cent from first quarter 2014, and we have secured important amendments to our Fleet Back Facility and pushed back the date for our next bond maturity to 2018. We also recorded multi-client sales in the quarter of US$36.7 million as our Capreolus 3D project offshore Australia passed the 50 per cent completion milestone. All positive developments underpinned by continued safe and efficient operational performance in the field.
"We will continue to focus on these business fundamentals to successfully navigate through this uncertain market."