Impairments Hit Polarcus Result
- Business & Finance
Seismic contractor, Polarcus has posted quarterly loss as it took high impairment charges and 22 percent revenues drop due to the weak market.
The Oslo-listed company reported net loss for the quarter of $287.3 million or $4.29 per share, versus the net loss of $80 million or $0.12 per share in Q4 2014. During the 2015 the loss grew to $372.2 million, compared to $78.6 million for 2104 as the impairment charges increased from $35.1 million in 2014 to $315.4 million.
The impairment charges are mostly allocated to vessels, seismic equipment and intangibles. In the fourth quarter 2015, Polarcus recognised impairment charges of $247.4 million, up approximately 760% from the corresponding period in 2014.
Furthermore, revenues for the quarter dropped to $72.5 million from $93.3 million in Q4 2014. Full-year revenues also declined some 19% to $377.5 million in 2015 compared to $466.7 million in 2014.
Backlog as at end-February 2016 was estimated at $210 million.
In addition, the company said it will recognize ‘significant accounting gains’ in Q1 2016 as a result of the completion of the restructuring.
Subsea World News Staff