Polarcus Limited ("Polarcus" or the "Company") (OSE: PLCS) announces the release of its third quarter 2013 financial statements.
Highlights in the third quarter 2013:
- High contract day rates achieved
- EBITDA margin improved to 43%
- EBIT margin improved to 27%
- Solid and efficient operational performance
- Repayment of USD 35 million convertible bond
- Backlog end October of USD 150 million
- USD 40 million settlement of lawsuit filed by WesternGeco post quarter end
The third quarter 2013 evidenced all time high contract day rates for Polarcus and delivered a record EBIT margin of 27% on strong project execution. EBITDA and EBIT were lower compared to the same quarter last year due to the reduced fleet capacity of 14% subsequent to the sale of Polarcus Samur. Revenues were down proportionately more due to significantly lower reimbursable revenue in the current period. Contract utilization was lower because of a yard stay and as a result of the Company's decision to transit out of the North Sea ahead of the global fleet exodus in order to secure early positioning advantage internationally.
Multi-Client revenues were negatively affected due to the ongoing delay in award of the remaining blocks from the UK 27th Round where the Company has new project coverage. The industry had previously anticipated these block awards to be made early in the third quarter but now expects an announcement in Q4 2013 prior to the opening of the 28th Round provisionally announced for January 2014.
Commenting on the results, Rolf Rønningen, CEO Polarcus, said: "We have put behind us a decent quarterly result as a function of stellar performance on our vessels when in operation. The combination of safe operations, running the vessels efficiently and the quality of our assets gives Polarcus excellent foundation for the future."
Rolf Rønningen, CEO Polarcus, +971 4 436 0800 / +971 50 459 6982
Tom Henrik Sundby, CFO Polarcus, +971 4 436 0800 / +971 50 708 6480
Polarcus (OSE: 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 500 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 2012 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.
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