SeaBird in Profit, Might Look into Further Fleet Resizing

Oslo-listed SeaBird has swung to a profit compared with a negative result in the second quarter 2015, on increased revenue and fleet utilization.

The seismic data provider for oil and gas companies posted profit of around $100K or $0.03 per diluted share for the second quarter of 2016, compared to net loss of $16.8 million or $5.34 per diluted share in the corresponding period in 2015.

For the six months ended June 30, 2016, SeaBird booked net profit of $1.9 million, versus $46.5 million in the first half 0f 2015.

In the second quarter of 2016, SeaBird recorded a 14% increase in turnover which amounted to $22.2 million, compared to $28.1 million in Q2 2015, and a 14% decrease in quarter-over-quarter revenue of $23.2 million. Contract revenues for the period were $21.4 million, while the multi-client sales were $800K, up from $700K same time last year.

Revenues for first half of 2016 were $48.2 million, against $43.8 million from the prior-year comparable period.

SeaBird’s fleet, with 82% utilization, has mostly been employed on TGS Gigante survey in Mexico during the second quarter 2016. Backlog reported as of June 30 was $23 million, which is the remaining portion of the Gigante contract, and recently secured deals for the North West Europe region.

The company said its operational expenses were reduced during the second quarter relative to previous quarters as a result of ongoing cost cutting initiatives.

“The company is reviewing a number of survey opportunities for quarter four of 2016 as well as fiscal 2017. However, the current market uncertainty makes it difficult to predict the level of contract coverage that is possible to obtain beyond the company’s firm backlog. Consequently, the company is reviewing its fleet capacity and other measures to further reduce its operating cost level. This may include stacking of additional vessels and further fleet reduction,” SeaBird said in its second quarter 2016 earnings report.

During the quarter the company decided to redeliver the Voyager Explorer to its owners following the completion of its bareboat charter in August 2016.

Subsea World News Staff

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