Oslo-listed SeaBird, a seismic data provider for oil and gas companies, has plunged back into the red in the second quarter 2015 (Q2 2015) as revenues dropped on weak seismic market demand.
The company recorded a net loss of $16.8 million in Q2 2015 versus net loss of $7.9 million in the corresponding period in 2014.
To remind, SeaBird posted net profit of $63.3 million in the previous quarter backed by a non-recurring financial restructuring gain net of advisory fees of $61.3 million and a non-recurring restructuring gain on leases of $4.7 million.
In the second quarter 2015, Norwegian seismic contractor booked $19.6 million in revenues, a decrease of 56% compared to $44.7 million in Q2 2014 and down 19% relative to Q1 2015.
According to SeaBird, the decreased revenues are primarily due to reduced number of vessels in operation and lower multi-client activity during the period.
Revenues for first half of 2015 were $43.8 million compared to $78.4 million in the same period in 2014.
Furthermore, due to the challenging market conditions, the company decided to stack Munin Explorer . This capacity reduction is in addition to the lay-up of Voyager Explorer and Geo Pacific, which were cold stacked during Q4 2014 and Q1 2015.
Vessel utilization was 68% during Q2 2015, up from 58% in the previous quarter.
As for the costs, the lay-up of 3D vessels, reduced operating expenses, lower project activity, reduced vessel charter rates and lower crew headcount contributed to bring down costs of sales relative to 2014 and Q1 2015.
Total extraordinary non-recurring charges amounted to $14.4 million during the quarter.
“Global seismic market demand continued to show weakness in the second quarter. The reduced capital spending in the sector has materially lowered seismic industry activity and delayed or cancelled survey start-ups and awards. We expect the market to remain challenging in the intermediate term,” the company said in a statement.