Polarcus Limited (OAX: PLCS) today reported its third quarter 2010 financial statements.
The quarter has seen Polarcus build on its marine experience to deliver a solid operational performance, resulting in a profitable operating margin for the second consecutive period. Growing industry recognition of Polarcus' capabilities coupled with a continuing robust demand for high-end seismic services has enabled the Company to increase backlog by a total of seventeen vessel months. As a consequence 100 per cent of the Company's fleet capacity is fully booked through Q1 2011.
Rolf Ronningen, CEO Polarcus, commented: "Polarcus has further strengthened its competitive market position amongst the top tier seismic companies. With a growing operational track record and high end seismic fleet, our offering is gaining traction in the marketplace. Moving forward, a continued solid operational performance is our key priority".
Highlights in the third quarter 2010:
- EBITDA of USD 8.5 million on revenues of USD 30.8 million, driven by solid vessel performance and effective cost control. This resulted in a positive EBIT of USD 2.3 million for the quarter.
- Took delivery on 31 August 2010 of POLARCUS ASIMA, an Arctic-ready 12-streamer vessel and the largest to date to join the Company's fleet. The vessel subsequently commenced first production on 30 September 2010 in a 12-streamer configuration for Rosneft in the Russian sector of the Black Sea.
- Upgraded POLARCUS SAMUR from 6 to 8-streamer capability in order to take advantage of the evolving seismic market environment and to provide the flexibility to tender the vessel on a larger number of contracts. Subsequent to this, the Company announced on 29 October 2010 the receipt of a Letter of Intent for the first 3D project for POLARCUS SAMUR, offshore Southwest Africa.
- Became the first in the seismic industry to be fully certified across all departments to the combined ISO 9001 (Quality Management), ISO 14001 (Environmental Management) and OHSAS 18001 (Occupational Health and Safety) international standards.
Subsequent important events:
- Successfully completed new financing of USD 195 million to enable the reacquisition and completion of POLARCUS ALIMA, scheduled for delivery from the shipyard in Q1 2011. The new financing comprised a USD 60 million equity issue and a USD 80 million 5 year bond issue, both of which were significantly oversubscribed, and a USD 55 million loan facility.
- Received six separate Letters of Intent for 3D contract services, including a strategically important 4D seismic acquisition ‘monitor' survey and undershoot for Eni, offshore Nigeria.
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.
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