Polarcus gains market share while restructuring balance sheetCompany News // March 1, 2016
Polarcus Limited has announced the release of its fourth quarter and preliminary full year 2015 financial statements.
Highlights in the fourth quarter 2015 included revenues of US$72.5 million, down 22 pe cent from the fourth quarter of 2014; gross cost of sales of US$54.3 million, down 26 per cent; cash from operations of US$28.6 million, up 263 per cent; a multi-client prefunding ratio of 104 per cent; non-cash impairment of US$242 million relating to carrying values of vessels, equipment and intangibles; and the completion of financial restructuring post quarter end. The company has a backlog of US$210 million.
"The fourth quarter was one in which we saw the culmination of significant efforts across the organization to successfully execute our 2015 agenda," said Rod Starr, Chief Executive Officer at Polarcus. "We increased market share, announcing nine awards since the end of the last quarter, maintaining an industry-leading backlog. We delivered significant cost reductions, with a 26 per cent decrease in gross cost of sales compared to the same quarter the previous year, with further future cost savings expected following the organizational changes announced post quarter end. Finally, we restructured the balance sheet, which was formally completed in the first quarter 2016, giving us a potential debt reduction of US$280 million. Despite a reduction in revenues, we generated cash from operations of US$28.6 million in the quarter, significantly higher than in the same quarter the previous year. Our investment in multi-Client remained disciplined, and we recorded a high prefunding level of 104 per cent in the quarter."
"The company begins 2016 in a stronger position than ever before; with a higher market share, a lower cost base and a lower debt burden. Although the market outlook remains challenging during the year ahead, we remain confident that we are well positioned for this prolonged downturn."