SeaBird’s Revenues Decrease Due to Lower Vessel Utilization

SeaBird Exploration Plc (“SeaBird) reports a net loss of $0.6 million for Q1 2014 (profit of $1.8 million in the same period in 2013).

Revenues were $33.7 million in Q1 2014 ($50.0 million). The decreased revenues are primarily due to lower vessel utilization and increased multi-client activity during the period.

Cost of sales was $19.7 million in Q1 2014 ($34.1 million). The decrease is mainly due to an increase in multi-client activity and a continued cost focus across the fleet.

SG&A was $4.9 million in Q1 2014, up from $4.6 million in Q1 2013. This is principally due to an increase in employee numbers in line with a larger fleet size.

EBITDA was $10.2 million in Q1 2014 ($11.5 million).

Depreciation and amortization were $7.8 million in Q1 2014 ($6.0 million). The increase is predominantly due to an increase in multi-client sales amortization in the period.

Interest expense was $3.0 million in Q1 2014 ($3.0 million).

Other financial items, net expense, of positive $0.2 million in Q1 2014 (negative $0.1 million). The change is mainly due to currency fluctuations.

Income tax expense was $0.3 million in Q1 2014 (expense of $0.6 million). The decrease is predominantly due to operating in regions with lower corporate and withholding tax rates during the quarter.

Capital expenditures were $2.4 million in Q1 2014 ($6.8 million). Capital cost items for the quarter related to the purchase of routine seismic and other equipment across the fleet.

Multi-client investment was $7.4 million in Q1 2014 ($0.2 million), which related to the Geo Pacific’s 3D multi-client survey in West Africa.

Net profit from discontinued operations was $0.4 million for Q1 2014 (loss of $0.5 million). Discontinued operations represent the remaining contractual obligations of the ocean bottom node (OBN) business, which was divested in 2011.

Regional overview

Revenues in Europe Africa and the Middle East (EAME) improved significantly from the prior period with half of the fleet active in this region. Repositioning of vessel capacity to the EAME region resulted in decreased revenues in North and South America (NSA). Asia Pacific (APAC) revenues were down slightly from the fourth quarter of 2013 due to reduced multi-client sales. Lower niche 3D demand also impacted this region.

Sales in EAME of $17.1 million accounted for 51% of total revenues. Revenues increased compared to the prior period as Northern Explorer completed a longer contract in the Mediterranean and repositioned to commence a joint project with Hawk Explorer in East Africa. This project will keep both vessels active in the region through the majority of the second quarter. Moreover, Geo Pacific initiated its first multi-client project in West Africa. Harrier Explorer continued its source contract in the North Sea.

APAC sales of $10.4 million accounted for 31% of total revenues. APAC revenues were down slightly compared to the fourth quarter 2013. Aquila Explorer completed a 2D survey with a major oil company and will operate within the region throughout the second quarter. Towards the end of the quarter, Voyager Explorer commenced a 2D project.

Sales in NSA of $6.2 million represented 18% of total revenues. The decrease in NSA revenues was mainly due to the repositioning of the Geo Pacific to West Africa and a delay in contract start-up for Osprey Explorer’s project in South America.

Press Release, May 06, 2014