SeaBird Back in Black
Oslo-listed SeaBird, a seismic data provider for oil and gas companies, has bounced back following the company’s financial restructuring.
SeaBird posted net profit of $63.3 million for the first quarter of 2015, compared to net loss of $0.6 million in the corresponding period in 2014.
The profit was backed by a non-recurring financial restructuring gain net of advisory fees of $61.3 million and a non-recurring restructuring gain on leases of $4.7 million.
However, SeaBird warned that in the event of contracts and other arrangements in respect of the employment of SeaBird’s vessels are cancelled or significantly delayed and alternative employment cannot be secured at satisfactory rates, its board of directors believes “the company does not have sufficient working capital for its current requirements, being understood as the requirements for a minimum of 12 months from the date of this report.”
“SeaBird has not as of today made specific alternative plans to cover such potential shortfall, although under those circumstances alternatives may exist to sell or otherwise monetize certain
assets, being primarily made up of owned vessels and the multi-client library, or to make other financing arrangements,” Said the company in its Q1 report.
In the first quarter of 2015, ended March 31, SeaBird recorded a 28% decrease in turnover due to continued softness in seismic market demand. Revenues for the quarter amounted at $24.2 million, compared to $33.7 million in Q1 2014. Contract revenues for the period were $23.0 million, while the Multi-client sales were $1.2 million.
Furthermore, during the quarter the company implemented measures to reduce costs. The lay-up of Geo Pacific, lower project activity, reduced vessel charter rates and lower crew headcount contributed to bring down costs of goods sold relative to 2014. The company also benefited from lower fuel cost and favorable exchange rates.
Administrative costs were reduced as a result of the implementation of the closing of the Dubai office and reduced onshore headcount.