Polarcus Limited announces the release of its fourth quarter and preliminary full year 2013 financial reports.
Polarcus delivered a respectable result in Q4 2013 despite very challenging market conditions during the quarter. The Company recorded an increase in EBITDA margin to 41% with low utilization being offset by lower costs. Reduced finance costs due to less debt and reduced interest rates further helped the Company to record an increase in net profit margin. The second tranche of the 27th UK licensing round had a positive effect on Multi-Client revenue, with USD 8 million revenue recognized in Q4 resulting directly from the round.
Full year 2013 highlights:
– Increase of 11% in EBITDA to USD 211.9 million from USD 190.2 million in 2012
– Increase of 29% in EBIT to USD 118.1 million from USD 91.4 million in 2012
– Increase of 344% in net profit to USD 43.5 million from USD 9.8 million in 2012
– Record high annual margins: EBITDA 40%, EBIT 22% and Net profit 8%
– De-levering of the balance sheet through refinancing and repayment of debt following the sale of Polarcus Samur
Commenting on the results, Rolf Rønningen, CEO Polarcus, said: “The market environment in the fourth quarter has proved challenging, with a global slowdown in project awards resulting in low utilization and some vessel standby in Asia-Pacific pending contract awards. That said, good cost discipline combined with responsible bidding and excellent project execution enabled the Company to deliver a respectable quarter despite these strong head winds. Furthermore, the Company’s determined focus on deleveraging throughout the year has delivered a net profit of USD 43.5 million in 2013, up from USD 9.8 million in 2012. Polarcus enters 2014 in good shape with a current backlog of USD 230 million and a growing reputation in the industry for delivering high quality seismic across both the contract and Multi-Client business lines.”
Press Release, February 14, 2014 ; Image: Polarcus