SeaBird reports deeper 2Q net loss

SeaBird Exploration, a Cyprus-based seismic survey company, has reported a net loss of $7.9 million for Q2 2014, compared to the net loss of $4.1 million in the same period in 2013.

Revenues for the quarter were $44.7 million, an increase of 19% compared to Q2 2013.

In its financial statement, SeaBird said that the second quarter revenues rose as a result of solid 2D and source vessel performance. However, SeaBird has said, demand in the niche 3D segment has been slower to recover.

SeaBird’s revenues remained strong in Europe Africa and the Middle East (EAME) during the quarter. Asia Pacific (APAC) revenues increased from the first quarter of 2014 as a result of continued 2D demand in the Australasia region.  North and South America (NSA) remained flat compared with last quarter.

Outlook

The company has said it has recently seen increasing competition from 3D vessels entering the 2D and source markets. Additionally, the overall 2D market activity has moderated as of late.

“While we do not see a longer-term change in market demand, we do expect the current situation to negatively impact the company’s third quarter,” SeaBird said.

“We are continuing to see an increased interest in entering longer-term contracts and framework agreements. We also continue to see positive developments in the source market which is supported by growth in the ocean bottom seismic sector. We expect that the source market will remain an important part of fleet utilization going forward.”

“The niche 3D market is still to recover and the tender activity remains below historical market levels,” the company said.