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