Red quarter for Polarcus as revenues sink
Marine seismic player Polarcus has slipped deeper into the red in Q2 2020 as revenues dropped close to 66 per cent compared to prior year.
The Oslo-listed company reported second quarter 2020 loss of $20.7 million, versus loss of $0.6 million in Q2 2019.
Polarcus generated quarterly revenues of $22.1 million, down from revenues of $64.8 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 $15.5 million from $47.6 million same time last year.
Polarcus’ EBITDA was negative $5.1 million, against $16 million year-on-year.
During the quarter, the company booked $2.0 million non-recurring restructuring costs associated with the organization reshape announced in June 2020.
For the first six months, Polarcus recognised net loss of $25 million on revenues of $77.4 million, compared to $4.7 million loss and revenues of $140 million in the prior-year comparable period.
Vessel utilization for the quarter ended 30 June 2020 was 50 per cent, versus 72 per cent in Q2 2019.
In addition, Polarcus backlog took a hit compared to last year and now stands at about $141 million.
Going forward, Polarcus said it will implement business continuity initiatives and cost reduction measures to navigate the current market uncertainty.
This includes further reductions in active vessels during H2 2020.