Improvements in vessel dayrates bring Polarcus back to profit

Seismic services player Polarcus returned to profit in the second quarter of 2019 from a loss in the corresponding period of 2018 on the back of higher revenues driven by improvement in vessel dayrates.

The seismic company said on Wednesday it had recorded a profit of $0.6 million in the second quarter of 2019 compared to a loss of $8.1 million in the same period last year.

Segment revenues of $64.8 million in 2Q 2019, increased 34% year-on-year from $48.4 million driven by a 50% improvement in dayrates compared to the same quarter last year. Revenue growth was achieved despite a reduction in utilization of the company’s fleet to 72% compared to 85% in 2Q 2018 as vessels were re-positioned early in the quarter for new projects.

The revenue increase was also supported by the first Polarcus hybrid project (towed streamer and ocean bottom node) that was completed during the quarter and $3.6 million in multi-client late sales compared to zero in 2Q 2018.

The company’s secured backlog at June 30, 2019, is estimated at $200 million compared to $150 million at the same time last year.

Polarcus CEO, Duncan Eley, commented: “Polarcus achieved increased earnings in Q2 2019 with revenue and EBITDA improving significantly year-on-year.

“Tender activity remains elevated and we expect strong levels of demand to continue. We look ahead to a third quarter with higher fleet utilization and associated further improvements to revenue and EBITDA.”

Polarcus said that an oil price around recent levels is a positive driver for E&P spending and that this will increase demand for seismic data acquisition from both E&P companies and multi-client companies.

According to the company, the reshaping of the seismic industry has led to an expanded client base of more multi-client companies without vessels. As Polarcus becomes one of only three seismic vessel owners operating globally, the marine acquisition segment is positioned to achieve further improved pricing, Polarcus said.

The company’s fleet is 80% booked for the second half of 2019 and backlog of $200 million. The company reiterated its view that it will deliver improved EBITDA and cashflow in 2019 compared to 2018.

Offshore Energy Today Staff

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