Polarcus Limited, a pure play marine geophysical company with a pioneering environmental agenda, specializing in high-end towed streamer data acquisition, has released its second quarter 2014 financial statements.
The Company recorded higher revenue per vessel and improved margins in Q2 2014 compared to Q1 2014, as the quarter saw an end to the downward trend in margins recorded sequentially over the previous two quarters. The improved revenue is driven by higher contract utilization and operational efficiency. Multi-Client sales of existing data library remained elusive due to delayed client purchasing decisions, however subsequent to the quarter end a USD 6.3 million sale was booked originating from the second tranche of the UK 27th licensing round.
A continued competitive market environment combined with increased uncertainty on Multi-Client sales, leads the Company to reduce its full year EBITDA guidance to approximately USD 200 million.
Polarcus Naila returned to operation after a propulsion upgrade which increased her towing and streamer capacity to match the capability of the Company’s four high performance A-class vessels. The vessel now operates with a significantly improved cost base as well as improved earnings potential through the improved towing capability. USD 20 million financing relating to the propulsion and productivity enhancement was received post quarter end.
The Company continued to improve its financial position by extending its debt maturity profile and reducing its financing costs through issuing a NOK 350 million bond. The new bond carries a lower effective interest rate than the old debt the funds were used to refinance. The transactions were finalized post quarter end.
Commenting on the results, Rolf Rønningen, CEO Polarcus , said: “The Company has successfully delivered improved margins in the quarter despite a testing market that has seen tendering levels flat year-on-year and Multi-Client late sales delayed. The competitive market environment meanwhile has had an impact on backlog, however we remain fully focused on improving margins and increasing visibility on future Contract activity. We are also now well advanced on building a strong, well-funded, multi-client project pipeline.”
Net profit was USD 9.2 million in Q2 2014 compared to USD 6.3 million in Q2 2013.
Net profit was USD 10.2 million in H1 2014 compared to USD 16.1 million in H1 2013. The decrease in net profit in H1 2014 compared to H1 2013 is largely driven by a reduction in revenue as a result of delayed multi-client revenue, the effect of which is partially offset by lower financing costs.
Press Release, August 08, 2014