Polarcus swings to loss on major revenue drop

Marine seismic player Polarcus has slipped into the red in Q3 2020 as revenue fell some 76 per cent compared to prior year due to the global slow-down on the back of the COVID-19 pandemic.

The Oslo-listed company reported third quarter 2020 loss of $13.5 million, versus profit of $13.7 million in Q3 2019.

Polarcus generated quarterly revenues of $24.3 million, down from revenues of $103.4 million in the prior year comparable period.

Revenues fell mainly by reduced proprietary contract revenue and reduction in multi-client revenue and other income.

Proprietary contract revenue decreased to $18.9 million from $95 million same time last year.

Polarcus’ EBITDA was $2.6 million, against $29.6 million year-on-year.

For the first nine months, Polarcus recognised net loss of $38.5 million on revenues of $102 million.

This compares to $9 million profit and revenues of $244 million in the prior-year comparable period.

Vessel utilization for the quarter ended 30 September 2020 was 43 per cent, versus 83 per cent in Q3 2019.

In addition, Polarcus backlog was also down compared to last year and now stands at about $139 million.

Going forward, Polarcus said that sentiment related to oil price and COVID-19 restrictions will be an important factor for medium-term demand levels as E&P companies work with more compressed budget cycles.

However, recent discussions with clients do indicate that E&P investment should increase during 2021, Polarcus noted.