Seismic contractor, Polarcus has posted quarterly boost in profit as a result of the completion of its financial restructuring.
Namely, restructuring resulted in a $224 million increase to book equity and $351 million reduction in the carrying value of debt.
The Oslo-listed company reported net profit for the quarter of $146 million or $0.79 per share, versus net loss of $26.4 million or $0.04 per share in Q1 2015.
Revenues for the quarter dropped 12 per cent to $63.7 million from $81.1 million in Q1 2015 on expected market slowdown. Quarter-over-quarter revenues also declined some 19% from $72.5 million.
Polarcus’ backlog at the end of the first quarter 2016 was estimated at $200 million, backed by eight contract awards since end of last quarter.
“Against the backdrop of a challenging market, the company maintained industry leading backlog, securing four new contracts and four contract extensions since the end of the last quarter. These successes include a three-year extension of the bareboat contract with Sovcomflot and a two-year extension of the management contract with Turkish Petroleum, which provide additional long-term revenue visibility for the company,” said Rod Starr Polarcus’ CEO.
Subsea World News Staff