Slow-Down in Seismic Demand Responsible for Dolphin’s Disappointing Q4 Results

Dolphin Group released fourth quarter and preliminary full year 2013 results.

Dolphin Group reported poor results in Q4 2013. Compared to Q4 2012 revenues of USD 75.5 million, Q4 2013 revenues are down to USD 38.8 million. Recorded EBITDA was USD 3.4 million, compared to USD 26.5 million in Q4 2012. EBIT of Q4 2012 dropped from USD 16.3 million to USD -13.6 million in the fourth quarter of 2013.

Dolphin also recorded USD -15 million in Net income and increased net cash MCS Investments in Q4 of USD 16.2 million, primarily in the Barents Sea, North Sea and Brazil. Capital Expenditure financing secured with additional bond loan of USD 82 million and increased drawing facility of USD 20 million (total of USD 50 million) and a record back-log of USD 220 million secured as per 1 February 2014 were also announced in the report.

Preliminary full year report shows an increase in revenues from USD 221.3 million in 2012 to USD 246.5 million in 2013, EBITDA drop from USD 81.0 million to USD 76.0 million and EBIT drop from USD 40.6 million to USD 31.4 million. Net income was USD 12.4 million, compared to USD 32.7 million in 2012.

Atle Jacobsen, Dolphin Group CEO commented: “Dolphin has since September 2013 expressed our concern over a slow-down in seismic demand, which would have an effect on the seismic industry in general and specifically for Dolphin in Q4 2013 and beginning of Q1 2014. Our disappointing fourth quarter reflects such a market situation, with low fleet utilisation and limited sales from a young and growing Multi-Client library. To mitigate seasonal utilisation effects going forward, we have during the quarter relocated two of our high capacity 3D vessels to new geographical regions; Australia and South America.”

Press Release, February 19, 2014; Image: Dolphin Group