Dolphin Sees Red in Q2

Norway’s Dolphin has slumped into the red in the second quarter as revenues declined on lower pricing and less capacity allocated to exclusive contracts.

The Oslo-listed seismic player recorded a net loss of $15 million for the quarter or negative diluted earnings per share of $0.04. Nordstjernan AB remains the company’s largest shareholder with little above 10% stake. Year-to-date earnings were a negative $10.4 million.

Second quarter revenues were $80.1 million, compared to $101.0 million in Q2 2014. The decrease was primarily due to a 24% reduction in exclusive contract revenue and a 18% reduction in Multi-Client revenues.

Revenues for the first half of the year were USD 200.2 million, compared to USD 181.1 million in the same period in 2014.

Furthermore, Dolphin recorded charges of $6.2 million related to restructuring of earlier re-delivery of Artemis Atlantic and de-rigging of Artemis Arctic. This is part of the announced cost savings programme communicated in Q1. All of the charges are non-cash effect for this quarter.

Dolphin has a total of 466 employees as of 30 June 2015, including subcontractors engaged as part of the seismic crew on our operated vessels. There has been a redundancy process in the Group
during 2015, which will affect Q3 2015 result.

Dolphin, for the coming third quarter, expects total revenues in the range USD 90-100 millions. The company said the re will be no larger CAPEX programs committed to and Dolphin will consider adjusting its vessel capacity to meet changes in seismic demand.