SeaBird Exploration says seismic activity badly affected by oil priceCompany News // August 21, 2015
Marine seismic specialist SeaBird Exploration says the company's second quarter was characterized by low oil prices and a weak market sentiment for oil exploration.
"Seismic tender activity has been substantially impacted and price competition has intensified," said the company. "Furthermore, the 2D/source market has continued to experience significant competition from multi-streamer 3D vessels. The negative market sentiment has exacerbated industry risk factors and increased the uncertainty related to timing of a market recovery."
SeaBird said revenues for the quarter were reduced due to project delays and the continued softness in seismic market demand.
In light of challenging market conditions, the company decided to stack the vessel Munin Explorer. This capacity reduction is in addition to the lay-up of Voyager Explorer and Geo Pacific, which were cold stacked during the fourth quarter of 2014 and Q1 2015, respectively.
The company said it continued its cost reduction effort. An office relocation from Dubai is completed and run-rate SG&A is currently in line with initial targets. Operating expenses have been reduced relative to plan estimates and the company has initiated measures to realize permanent cost savings. Capital expenditures have been reduced relative to the investment plan.
The company is continuing its efforts to review and implement further cost savings. In addition to cost reductions, the company is actively focusing on cost flexibility measures as well as improving operational efficiency.