Fourth quarter and preliminary full year 2013 report – Respectable earnings in a challenging quarter
14 Feb 2014
Polarcus Limited (“Polarcus” or the “Company”) (OSE: PLCS) announces the release of its fourth quarter and preliminary full year 2013 financial statements.
Highlights in the fourth quarter 2013:
- Revenues of USD 123.3 million, EBITDA of USD 50.8 million and EBIT of USD 24.5 million
- Increase in EBITDA margin to 41% compared to 40% in Q4 2012
- Reduction in OPEX, SG&A and finance costs compared to Q4 2012
- Net profit of USD 7.4 million, compared to a net loss of USD 3.3 million in Q4 2012
Polarcus delivered a respectable result in Q4 2013 despite very challenging market conditions during the quarter. The Company recorded an increase in EBITDA margin to 41% with low utilization being offset by lower costs. Reduced finance costs due to less debt and reduced interest rates further helped the Company to record an increase in net profit margin. The second tranche of the 27th UK licensing round had a positive effect on Multi-Client revenue, with USD 8 million revenue recognized in Q4 resulting directly from the round.
Full year 2013 highlights:
- Increase of 11% in EBITDA to USD 211.9 million from USD 190.2 million in 2012
- Increase of 29% in EBIT to USD 118.1 million from USD 91.4 million in 2012
- Increase of 344% in net profit to USD 43.5 million from USD 9.8 million in 2012
- Record high annual margins: EBITDA 40%, EBIT 22% and Net profit 8%
- De-levering of the balance sheet through refinancing and repayment of debt following the sale of Polarcus Samur
For the full year 2013 the Company recorded an increase in revenues of 1%, while reducing vessel operating expenses by 7%. The Company strengthened its financial position during the year by repaying and refinancing bonds and reducing its overall debt burden and reducing finance expenses by 14% compared to the previous year. Further the Company renegotiated more favourable debt covenants on some remaining debt. 2013 was the first full year in which the Company recorded a net profit in all four quarters.
Commenting on the results, Rolf Rønningen, CEO Polarcus, said: “The market environment in the fourth quarter has proved challenging, with a global slowdown in project awards resulting in low utilization and some vessel standby in Asia-Pacific pending contract awards. That said, good cost discipline combined with responsible bidding and excellent project execution enabled the Company to deliver a respectable quarter despite these strong head winds. Furthermore, the Company’s determined focus on deleveraging throughout the year has delivered a net profit of USD 43.5 million in 2013, up from USD 9.8 million in 2012. Polarcus enters 2014 in good shape with a current backlog of USD 230 million and a growing reputation in the industry for delivering high quality seismic across both the contract and Multi-Client business lines.”
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.
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)