Polarcus narrows quarterly loss

Seismic services player Polarcus managed to cut its loss in the second quarter 2018 when compared to the same period last year.

The Oslo-listed geophysical company said on Thursday that it recorded a net loss of $8.8 million for this year’s second quarter as opposed to a $33.7 million loss in the same period of 2017.

The company’s revenues during the second quarter of 2017 increased to $44.6 million from $36.1 million in the 2Q 2017.

Regarding the company’s vessel utilization, it saw an increase with 85% in 2Q 2018 as opposed to 75% in last year’s second quarter and a 2% increase sequentially. Excluding vessels on long-term bareboat charters and the cold-stacked Polarcus Nadia, the utilization of the fleet was 79%.

Proprietary contract revenue increased by 80% to $32.5 million ($22.3 million in 2Q 2017), driven by increased vessel allocation to contract and higher achieved day rates.

Polarcus added that the gross cost of sales was $41.1 million, up nine percent sequentially on the back of higher utilization and increased project specific costs, leading to an increase of full-year guidance to $155 million, up from $150 million.

As for the total cash at the quarter end, it amounted to $34.7 million, including $0.1 million unrestricted cash. In addition, the company’s available liquidity at quarter end was $74.6 million, including the $40 million undrawn working capital facility.

Duncan Eley, chief executive officer of Polarcus, said: “We were pleased to witness further improved market activity in Q2 as we recorded our second consecutive quarter of increased utilization, at 85%, a level we expect to maintain in the third quarter. Our revenues were up 21% sequentially, mainly driven by increased proprietary contract revenue due to increased day rates and utilization.

“This was the third successive quarter in which we increased revenue, albeit from low levels and the pricing improvement has been slower than anticipated.

“The company secured a number of project awards since last quarter and now has 80% of its vessel capacity booked for H2 2018. As a result, two of Polarcus’ vessels are booked for long duration projects extending into Q1 2019.”

The company added that the near-term priority was to maintain momentum through the winter months thereby providing a platform for further improvements in pricing. The company currently has a backlog estimated at $150 million.

Also, the company expects total capex investments for the full-year 2018 to be $10 million, compared to $7.1 million in 2017. That excludes the purchase of Polarcus Naila and Polarcus Nadia that formed part of the company’s restructuring.

Offshore Energy Today Staff