Polarcus Swings to Profit

Seismic contractor, Polarcus, has seen its revenues rise 44% over Q2 2015, driven by high vessel utilization and strong multi-client prefunding.

Despite one vessel less in operation, revenues also inceresed 16 per cent year-over-year from $114.3 million to $132.2 million.

According to Oslo-listed company, EBITDA for the quarter increased by 60% to USD 69.6 million compared to USD 43.4 million in the same quarter last year. In addition, EBITDA margin increased to 53% in Q3 2015 compared to 38% in Q3 2014.

Polarcus reported net profit for the quarter of $19.8 million or basic and diluted earnings per share of $0.03, versus the net loss of $8.9 million in Q3 2014.

The Norwegian company has seen utilization increased to 93% in Q3 2015 from 77% in Q3 2014. In addition, contract utilization increased to 66% from 55% and Multi-Client utilization increased to 27% in Q3 2015 from 22% in Q3 2014.

“Though  Polarcus delivered a strong quarter, the  market outlook remains uncertain  due to continued low seismic spending by oil companies. Tender activity remains volatile and market rates low, with high levels of competition for the reduced number of projects, emphasizing the importance of operational efficiency, product differentiation, and project performance to build brand loyalty and repeat business. The Company expects this market environment to continue well into 2016,” the company said in Q3 report.

Backlog as at end-October 2015 was estimated at USD 160 million.