Red Ink for Polarcus
Seismic contractor, Polarcus, has recorded a net loss fourth quarter in a row on 33% lower revenues from the same quarter a year earlier and approximately $67 million impairments.
During the Q2 2015, Polarcus booked revenues of $91.7 million, compared to $137.6 million in Q2 2014. The drop was primarily affected by decline in contract revenues.
The Norwegian company reported a first-quarter loss of $78.3 million or basic and diluted earnings per share of negative $0.11, versus the net profit of approximately $9.2 million in Q2 2014. Net loss was $104.7 million for the first half of 2015 compared to a net profit of $10.2 million in the corresponding period in 2014.
The marine seismic market remained challenging in Q2 2015. Despite an increase in tender activity compared to Q1 2015, exploration spending by oil companies continues to be low, leading to a highly competitive seismic market with fierce competition for all tenders. The current market situation together with reduced vessel capacity following the cold-stacking of Polarcus Nadia in April impacted revenues negatively.
According to Rod Starr, Polarcus Chief Executive Officer, the company is 100% booked for Q3 and has more than 80% backlog coverage for the remainder of 2015 with the expectation of more to come as several major industry projects are yet to be awarded which should help ensure the Polarcus’ resilience through turbulent times within the sector.