First quarter 2015 report – Responding to an uncertain market environment

Polarcus Limited (“Polarcus” or the “Company”) (OSE: PLCS) announces the release of its first quarter 2015 financial statements.

Highlights in the first quarter 2015:

  • Revenues of USD 81.1 million down 33% from same quarter the previous year
  • Multi-Client sales of USD 36.7 million with prefunding ratio of 80%
  • Gross cost of sales of 68.7m down 13% from same quarter the previous year
  • Improved liquidity position by USD 59 million following an amendment agreement with the banks
  • Extension of maturity of the USD 125m convertible bond by two years to 2018

“The current market environment can be best described as uncertain, as oil companies have continued to reduce or defer spending commitments making for a highly competitive landscape. In response, we have stayed true to the 2015 Agenda I announced in February; building backlog, reducing costs, and managing our balance sheet. This focus included the difficult yet necessary decision to cold stack Polarcus Nadia at the end of the quarter.

Our Agenda is starting to deliver. Backlog visibility has grown to 70% for the year, costs are down 13% from first quarter 2014, and we have secured important amendments to our Fleet Back Facility and pushed back the date for our next bond maturity to 2018. We also recorded multi-client sales in the quarter of USD 36.7 million as our Capreolus 3D project offshore Australia passed the 50% completion milestone. All positive developments underpinned by continued safe and efficient operational performance in the field.

We will continue to focus on these business fundamentals to successfully navigate through this uncertain market.”

Rod Starr, Chief Executive Officer 


Key Financials

  Quarter ended   Year ended
(In millions of USD) 31-Mar-15 31-Mar-14   31-Dec-14
Revenues 81.1 121.4   466.7
Cost of sales (38.0) (74.6)   (286.2)
EBITDA 35.2 39.6   150.1
EBIT excl. impairment charge (8.8) 16.9   27.5
EBIT (8.8) 16.9   (1.3)
Net Financial Income/(Expenses) (12.0) (16.0)   (63.5)
Net profit / (loss) for the period (26.4) 1.0   (78.6)
Basic and diluted earnings per share (USD) (0.039) 0.002   (0.145)
Net cash flows from operating activities 51.5 55.9   157.8
Total assets (period end) 1,227.1 1,314.3   1,239.2
Total liabilities (period end) 768.1 785.2   753.7
Total Equity (period end) 459.0 529.1   485.5
Equity Ratio 37% 40%   39%
Property, plant & equipment cash investment 7.1 12.7   52.7
Multi-Client projects cash investment 43.0 9.9   46.9
Total cash (period end) 54.2 92.3   73.7
Net interest bearing debt (period end) 629.2 629.3   609.4


Contacts

Rod Starr, CEO Polarcus
+971 4 436 0800
rod.starr@polarcus.com

Tom Henrik Sundby, CFO Polarcus
+971 50 708 6480
tom.sundby@polarcus.com

 

About Polarcus

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 over 600 professionals worldwide. The Company’s principal office is in Dubai, United Arab Emirates. For more information, visit www.polarcus.com

 

Disclaimer

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 2014 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)