Magseis Posts Quarterly Loss

Norwegian geophysical contractor, Magseis, has reported net loss of USD 6.5 million or NOK -0.24 basic earnings per share in the first quarter 2015, compared to net loss of USD 3.9 million or NOK -0.21 basic earnings per share during Q4 2014.

The Oslo-listed company has also seen its revenues drop at USD 5.7 million compared to USD 13.9 a year earlier and USD 11.8 million during Q4 2014, due to significant time spent on steaming, poor weather and yard stay.

The EBITDA was USD -4.1 million in the first quarter compared to USD 2.0 million the first quarter of 2014 and USD -1.3 million in the fourth quarter of 2014. The EBITDA was heavily impacted by the low revenue in the first quarter. EBIT was USD -6.3 million in the first quarter

Completed pilot for Saudi Aramco which qualifies Magseis to tender for a large survey in the

Red Sea expected to commence in Q4 2015

Furthermore, Magseis completed upgrade on Athene while in dock for a 5-year classing. The vessel now operates 150 kilometres of cable.

“With the completion of the upgrade of capacity on Artemis Athene from 3 000 to 4 500 sensors Magseis now operates one of the largest crews in the OBS industry,” said the company in a statement.

During the second quarter Magseis has started work on the Captain survey for Chevron North Sea. During the survey , the company plans to introduce its second generation sensor units with, according to the company, significantly enhanced battery time as well as commercially deploy its long-life nodes as standalone units underneath platforms.

Ivar Gimse, Magseis CEO, said: “Our results for the quarter have been impacted by a significant amount of steaming, poor weather and the planned yard stay. As a result we have recorded a negative EBITDA of USD -4.1 million for the quarter. While clearly unsatisfactory these results must be viewed up against a very challenging industry environment and the significant potential for further work that the now completed pilots hold. As the first quarter draws to a close we have started on our project for Chevron North Sea which should prove an important reference as a very demanding 4D survey with an oil industry super major and where we operate a crew that is now among the largest in the OBS industry.”

As at March 31, 2015, Magseis had a total of 73 full-time employees including a seismic crew of 40.

Westcon Group AS is the company’s largest shareholder with 18.4 per cent, followed by Geo Innova with 12.9 per cent.

“Industry conditions remain challenging but we are seeing signs of renewed tendering activity, in particular for the 2016 season. As focus from our clients shifts from exploration towards development spending we believe this should support a faster recovery for the OBS segment than the broader seismic market,” explains the company in its first quarter report.