MCG sees deeper loss due to impairment charges
- Business & Finance
Norwegian marine seismic contractor MultiClient Geophysical (MCG) saw its loss deepen during the second quarter of 2016 when compared to the prior-year quarter, due to impairment charges.
The company on Friday posted a net loss of $3.2 million for the quarter, impacted by high amortization and an impairment charge of $4.5 million, versus a loss of $1.24 million in the second quarter of 2015.
MCG’s revenues increased to $2.7 million for the 2Q of 2016 when compared to revenues in the corresponding period last year that amounted to $1.37 million.
The company said that 93% of the revenue was prefunding, and 7% is related to late sales.
MCG reduced its operating expenses by 33 percent during the quarter, compared to 2Q 2015, as a consequence of cost saving efforts and lower activity levels.
According to the company, the seismic market continues to be stagnant, reflecting the low oil price and uncertainty in the prediction of future oil price.
MCG further estimated that the oil companies will continue its cost discipline, and the company, therefore, expects the low demand for seismic data to continue throughout 2016.
Offshore Energy Today Staff