Polarcus Limited ("Polarcus" or the "Company") (OSE: PLCS) announces the release of its first quarter 2016 financial statements.
HEADLINES Q1 2016:
- Revenues of USD 63.7 million, down 12% from Q4 2015
- Gross cost of sales of USD 53.4 million adjusted for new operating lease expense, down 7% from Q4 2015
- EBITDA of USD 18.1 million adjusted for non-recurring costs, resulting in a 28% margin
- Cash neutral after adjusting for USD 23.7 million non-recurring cash payments and release of USD 7.8 million restricted cash
- Total cash of USD 44.4 million in addition to USD 25 million undrawn working capital facility
- Completion of financial restructuring resulting in a USD 224 million increase to book equity and USD 351 million reduction in the carrying value of debt
- Eight awards since end of last quarter, including extensions of bareboat agreement and management contract, resulting in Backlog of USD 200 million
"Against the backdrop of a challenging market, the Company maintained industry leading backlog, securing four new contracts and four contract extensions since the end of the last quarter. These successes include a three-year extension of the bareboat contract with Sovcomflot and a two-year extension of the management contract with Turkish Petroleum, which provide additional long-term revenue visibility for the Company.
Gross cost of sales, adjusted for USD 4 million operating lease expense for Polarcus Nadia and Polarcus Naila, decreased by 7% from the previous quarter, and general and administrative costs adjusted for non-recurring restructuring costs were down significantly.
The Company's continued focus on expenses including the organizational changes announced in February 2016 are delivering lower underlying operating costs for the Company. As expected, the quarter incurred a number of non-recurring costs related to the transformation of the Company, including expenses related to the financial and organizational restructurings.
Adjusted for the non-recurring cash payments and release of restricted cash following completion of the restructuring, the underlying business was cash neutral in the quarter which is consistent with our plan to generate sufficient cash to support ongoing operating activities and our revised debt service.
During the quarter, the Company completed its financial restructuring, reducing the carrying value in the balance sheet of the Company's debt by USD 351 million and increasing the Company's equity by USD 224 million. The restructuring provides the Company with a sound and predictable debt service structure over a period where we expect to see a continued challenging market.
In this low commodity price environment, Polarcus will continue to focus on its business fundamentals of executing projects efficiently and safely and maintaining its strong fleet utilization. The Company's transformation is developing according to plan with a revised sales strategy bringing us closer to the market and our clients to drive vessel backlog, a lower cost base and disciplined investments to optimize cash, and a new capital structure to sustain the company in the event of prolonged weak market conditions."
Chief Executive Officer
|Quarter ended||Year ended|
|(In millions of USD)||31-Mar-16||31-Dec-15||31-Mar-15||31-Dec-15|
|EBITDA (before non-recurring items¹)||18.1||9.4||38.6||157.0|
|EBIT (before non-recurring items¹)||(2.0)||(20.2)||(4.1)||24.2|
|Net profit / (loss) for the period||145.9||(289.2)||(26.4)||(374.1)|
|Basic earnings/(loss) per share (USD)||0.79||(4.32)||(0.04)||(5.6)|
|Net cash flows from operating activities||14.2||28.6||51.5||167.5|
|Total assets (period end)||686.3||848.2||1,227.1||848.2|
|Total liabilities (period end)||382.3||736.3||768.1||736.3|
|Total equity (period end)||304.0||111.9||459.0||111.9|
|Property, plant & equipment cash investment||10.7||1.0||7.1||15.1|
|Multi-Client projects cash investment||11.5||11.6||43.0||97.0|
|Total cash (period end)||44.4||68.5||54.2||68.5|
|Net interest bearing debt (period end)||251.5||588.1||629.2||588.1|
Rod Starr, CEO
+971 4 436 0800
Hans-Peter Burlid, CFO
+971 50 559 8175
Polarcus (OSE: PLCS) is an innovative marine geophysical company with a pioneering environmental agenda, delivering high-end towed streamer data acquisition and imaging services from Pole to Pole. Polarcus operates a fleet of high performance 3D seismic vessels incorporating leading-edge maritime technologies for improved safety and efficiency. Polarcus offers contract seismic surveys and multi-client projects with advanced onboard processing solutions and employs nearly 500 professionals worldwide. 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 2015 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)