Polarcus has narrowed its quarterly loss when compared to fourth-quarter 2016, despite lower revenues and impairment charges.
The Oslo-listed company reported net loss for the quarter of $91.7 million or 60 cents per share, versus loss of $97 million in Q4 2016. Sequentially, the net loss widened from $9.1 million or 6 cents per share.
Polarcus recorded non-cash impairments of close to 90 million in Q4 2017 related to the carrying value of its seismic vessels and equipment as well as of the multi-client library.
Revenues for the quarter dropped to $37.2 million from $47.2 million in Q4 2016. Quarter-on-quarter revenues fell some 37 percent. Sequentially, vessel utilization fell to 68 percent from 92 percent. Utilization in 2017 was at 77 percent, compared to 83 percent in 2017.
Full-year revenues were $ 179 million, down form $243.4 million in 2016.
The Dubai-based seismic player ended 2017 in $172.5 million loss, versus 20.3 million profit at the end of 2016.
Backlog at end-December 2017 was estimated at $164 million, with twelve contract awards since end of Q3 2017.
Post-quarter end, Polarcus completed the pre-conditions for a financial restructuring of its debt, allowing the company to raise NOK 300 million in new equity through a private placement. The financial restructuring should be completed in Q1 2018.
“As a result of the fantastic performance by our sales organization in securing a significant increase in backlog since the end of Q3 2017 we have greatly increased our visibility into 2018 with more than 90% of the six Polarcus active vessels booked for the first half of 2018. We still see cautious spending on seismic exploration by our clients, but tender activity is up year-on-year with some positive momentum going into 2018 and we expect to see the seasonal tightening of the market during Q2 and Q3 this year,” Duncan Eley, Polarcus CEO.
Subsea World News Staff