Spectrum’s full-year loss deepens. Worst not over
Offshore seismic player Spectrum doesn’t expect the marine seismic market conditions to improve much this year, as it expects 2016 and 2017 will represent the bottom of the current downcycle.
The Oslo-listed company posted a positive result in the fourth quarter, with a net profit of 2.5 million versus a net loss of $5.5 million in the corresponding quarter of 2015.
However, the full year net result is another story, as the seismic player recorded a $20 million loss in 2016, compared to an $8 million loss in 2015.
Net Multi-Client revenues in the quarter totaled $29.9 million, down from$41.9 million in 2015.
Spectrum said is continuously working on a pipeline of new Multi-Client 2D (MC2D) and Multi-Client 3D (MC3D) acquisition projects, as sales from the MC library and prefunding of new projects constitute the main revenue streams for the Company and fund the operation and new investments in MC projects.
“We appreciate that attracting prefunding is more challenging in the current market vs previous periods, and our focus will be sales from our existing library and being prudent in terms of new Multi-Client investments decisions. Spectrum believes 2016 and 2017 will turn out to represent the trough in the current cycle…Spectrum sees a more attractive pipeline of Multi-Client investment projects entering 2017 compared to primo 2016.”
Offshore Energy Today Staff