Polarcus Limited (OAX: PLCS) today reported its second quarter 2010 unaudited financial statements.
The quarter has seen Polarcus successfully complete the inaugural projects for the Company's first two ultra-modern 3D vessels, POLARCUS NADIA and POLARCUS NAILA, and achieve its first profitable quarterly operating margin. The continued successful execution of the Company's client projects has been paralleled by a significant increase in tender invitations received during the quarter and a consequent strengthening of vessel backlog including the first backlog for POLARCUS ASIMA. Polarcus continues to gather momentum becoming a new seismic major.
Highlights in the second quarter 2010:
Revenues continued to grow with the increased activity and the on-going strict control of both SG&A and vessel operating expenses, resulted in an operating profit for the quarter. Revenues of USD 24.8 million were up 124% on the first quarter translating into EBITDA of USD 4.6 million, and a positive EBIT of USD 0.1 million.
POLARCUS NADIA, currently under charter to TGS, successfully completed her inaugural five month project offshore Liberia before transiting to the UK sector of the North Sea for further project operations. The current charter period with TGS ends mid November 2010. TGS has a final remaining option to extend the charter by a further six month period thereafter.
POLARCUS NAILA successfully completed her first project for Noble Energy in Cameroon before transiting to the North Sea to commence a Carbon Capture and Storage 3D project for Gassnova offshore Norway. This project was successfully completed on 04 July 2010 subsequent to which the vessel mobilized to the UK sector of the North Sea to commence a project for Nexen Petroleum U.K. Limited.
- Tender activity and backlog continued to strengthen during the second quarter with, as of 26 July 2010, 100% of the Company's available Q3 fleet capacity and 25% of the Q4 fleet capacity is fully booked. During the quarter Polarcus received a Letter of Intent from OMV Norway for a 3D seismic acquisition project in the Norwegian sector of the Barents Sea. Under a joint cooperation agreement with JSC Dalmorneftegeophysica (DMNG), Polarcus also received a Letter of Intent from Rosneft for a 1,030 square kilometer 3D seismic acquisition project in the Russian sector of the Black Sea.
Subsequent important events:
- During pre-delivery sea trials of POLARCUS ASIMA a commissioning related failure was identified in one of the vessel's two main propeller shafts. The fault has subsequently been rectified and trials now continue, but due to the requirement that the vessel had to be dry-docked to access the relevant system, the delivery of the vessel is revised to late August. The revised delivery schedule has been communicated to the launch client and does not impact the vessel's previously announced backlog.
Consequent on the revised delivery schedule above and to some additional structural modifications proposed to the latest ULSTEIN SX133 design that has resulted in adding a keel to the vessel in order to regain lost fuel capacity, delivery for POLARCUS SAMUR is rescheduled to be in the fourth quarter 2010. For the two optional vessels, POLARCUS ALIMA and POLARCUS SELMA, delivery is expected to be in the first quarter 2011.
- On 26 July Polarcus announced that subsequent to the successful and on time completion by Polarcus of the first Gassnova 3D survey ("Johansen 3D") on 04 July 2010, the second 3D project ("Troll Kystnær 3D") comprising 323 square kilometers offshore Norway has received budgetary approval and will be acquired by POLARCUS NAILA commencing in September 2010. This brings the combined size of the two Carbon Capture and Storage (CCS) 3D projects acquired for Gassnova to 740 square kilometers. The ("Troll Kystnær 3D") project is expected to run for approximately 22 days. As a result of this announcement Polarcus has now secured 100% contract backlog for the Company's available fleet capacity in Q3.
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 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 is launching a fleet of modern 3D seismic vessels using the innovative ULSTEIN X-BOW® design and incorporating advanced maritime technologies for improved operational efficiency with a reduced environmental footprint. Polarcus offers contract seismic surveys and multi client projects worldwide and has its principal office 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 2009 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)