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Norwegian geophysical company, Magseis, said that the third quarter results have been negatively impacted by an extended yard stay which reduced revenues by $1.5 million as well as lower than expected production speeds.

A breakdown of the rudder forced the vessel into dock and led to the vessel being out of production for almost 8 days.

The company has made a set of impairments to account for equipment that was damaged during the shake down phase and a foreign exchange loss related to the conversion of its accounts from NOK to USD.

Despite this, Magseis made a positive EBITDA result of USD 1,5 million

Third quarter revenues were $14.6 million compared to $0 in the third quarter of 2013. The increase is due to Magseis starting its operations in the fourth quarter of 2013. Revenues for the first three quarters of 2014 amounted to $44.8 million compared to USD 0 in the same period in 2013. Due to a yard stay in July, revenue decreased by $1.8 million in the third quarter compared to the second quarter in 2014 ($16.4 million).

During the third quarter, the company recorded a $2.0 million net loss, compared to $0.2 million profit during Q2 2014.

We firmly believe that the production-oriented nature of ocean bottom seismic will enable the continued growth of this segment and, in our view, this is supported by the number of ongoing and planned projects.

During the third quarter Magseis successfully completed work on the Gullfaks and Oseberg fields for Statoil. In September, Magseis started on a new acquisition project on the Danish Continental Shelf for Hess Denmark. The project is expected to last through mid-December 2014.