Polarcus Limited ("Polarcus" or the "Company") (OSE: PLCS) updates its guidance relative to multi-client prefunding estimated for the full year 2016. Based on preliminary numbers, the Company expects to report a prefunding level of 120% for the full year 2016, down from previously guided 150%. The estimated multi-client investment of USD 45 million for the full year 2016 remains unchanged.
Production on the Company's current multi-client project in Brazil has been negatively impacted by extraordinary operating conditions, including impacts from poor weather conditions and extreme barnacle growth, which will extend the duration of the project into February 2017. The slower production rate on the project will negatively affect the recognition of committed prefunding in Q4 2016.
Additionally, during Q4 2016 the Company has experienced standby time on certain vessels due to unforeseen permit delays on client projects. This will have a negative impact on the Company's utilization and revenue generation in the quarter. The Company's Q4 utilization will be announced in the first week of January 2017.
"High market competition is expected to continue in the near term resulting from the over-supply of vessel capacity relative to client tender volumes", stated Rod Starr, Polarcus CEO. "In spite of the highly competitive market, we expect to secure additional awards before year end as a result of our offering of industry leading assets and intelligent project designs."
The information contained in this announcement is only a preliminary assessment from the Company. The estimates provided in this release are, therefore, subject to change and final results may deviate materially from the information herein.
Rod Starr, CEO
+971 (0)4 43 60 819
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)