Polarcus Limited (OAX: PLCS) is pleased to announce the release of its first quarter 2011 financial statements.
In the first quarter 2011 Polarcus has continued to deliver on its growth strategy, expanding the Company's operations, fleet and backlog, and securing new financing. Compared with the previous quarter, revenues were lower due to the inclusion of transits on newly delivered vessels and very poor weather conditions which caused damage to in-sea equipment and increased technical downtime. Following this downtime a number of areas of improvement have been identified and technical performance has improved significantly where these have been implemented.
Rolf Ronningen, CEO Polarcus, commented: "We have been adversely impacted in this first quarter by some abnormally severe weather in the Falkland Islands and offshore Namibia. Technical improvements to our in-sea equipment have already started to bear fruit and we are confident performance will improve going forward. We are further pleased to see our backlog extending through the third quarter and our client base growing."
Highlights in the first quarter 2011:
- Revenue of USD 48.0 million and EBITDA of USD 4.6 million with three vessels in operation. Positive net cash flow from operating activities of USD 12.2 million.
- Took delivery in March of Polarcus Samur and Polarcus Alima. The vessels sailed straight from the shipyard to their first projects in South West Africa and East Coast India respectively.
- Compared with the previous quarter, revenues were lower due to the inclusion of transits on newly delivered vessels and very poor weather conditions which caused damage to in-sea equipment and increased technical downtime. Operating expenses were higher than normal due to operations being concentrated in very remote locations and increased fuel prices.
- Exercised the option to reacquire Polarcus Selma, financed through a USD 125 million convertible bond raised in April. Following the latest acquisition, the Polarcus high-end 3D/4D marine seismic fleet will comprise eight vessels. The projected Company market share after delivery of all vessels in 2012 will be 13%.
- Vessel backlog extended through Q3, including the first Polarcus 3D multi-client project in the UK that is supported through significant industry pre-funding.
Rolf Ronningen, CEO Polarcus, +971 4 436 0800 / +971 50 459 6982
Tom Henrik Sundby, CFO Polarcus, +971 4 436 0800 / +971 50 708 6480
Polarcus (OAX: PLCS) is a pure play marine geophysical company with a pioneering environmental agenda, specializing in high-end towed streamer data acquisition from Pole to Pole. Polarcus operates a fleet of high performance 3D seismic vessels incorporating an innovative design and advanced maritime technologies for improved safety and efficiency. Polarcus offers contract seismic surveys and multi-client projects worldwide and employs over 400 professionals. The Company's principal office is in Dubai, United Arab Emirates. For more information, visit www.polarcus.com
The information included herein may contain forward-looking statements. Forward-looking statements include all statements that are not historical facts, including but not limited to statements expressing or implying the Company's intent, belief or current expectations with respect to, among other things, forecasts, estimates, and predictions. Such forward-looking statements necessarily involve risks and uncertainties and are dependent on assumptions, information, data or methods that may be incorrect or imprecise. Actual results could differ materially from expectations expressed in the forward-looking statements if one or more of the underlying assumptions or expectations proves to be inaccurate or is unrealized. Some factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, developments in the oil and gas industry, the demand for seismic services, the demand for data from the Company's multi-client library, currency risks, political risks, regulatory risks, and unexpected operational setbacks. For a further description of other relevant risk factors we refer to our 2010 Annual Report. The reservation is also made that inaccuracies or mistakes may occur in the information given above concerning the current status of the Company or its business. Any reliance on the information given above is at the risk of the reader, and Polarcus disclaims any and all liability in this respect.
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)