Fourth quarter and preliminary full year 2015 report – Gaining market share while restructuring the balance sheet

Polarcus Limited (“Polarcus” or the “Company”) (OSE: PLCS) announces the release of its fourth quarter and preliminary full year 2015 financial statements.

Highlights in the fourth quarter 2015:

  • Revenues of USD 72.5 million, down 22% from Q4 2014
  • Gross cost of sales of USD 54.3 million, down 26% from Q4 2014
  • Cash from operations of USD 28.6 million, up 263% from Q4 2014
  • Multi-Client prefunding ratio of 104%
  • Non-cash impairment of USD 242 million relating to carrying values of vessels, equipment and intangibles
  • Completion of financial restructuring post quarter end
  • Backlog USD 210 million

“The fourth quarter was one in which we saw the culmination of significant efforts across the organization to successfully execute our 2015 Agenda. We increased market share, announcing nine awards since the end of the last quarter, maintaining an industry-leading backlog. We delivered significant cost reductions, with a 26% decrease in gross cost of sales compared to the same quarter the previous year, with further future cost savings expected following the organizational changes announced post quarter end. Finally, we restructured the balance sheet, which was formally completed in the first quarter 2016, giving us a potential debt reduction of USD 280 million. In addition, we reduce debt service payments by USD 140 million over the next two years alone.

Despite a reduction in revenues, we generated cash from operations of USD 28.6 million in the quarter, significantly higher than in the same quarter the previous year. Our investment in Multi-Client remained disciplined, and we recorded a high prefunding level of 104% in the quarter.

The Company begins 2016 in a stronger position than ever before; with a higher market share, a lower cost base and a lower debt burden. Although the market outlook remains challenging during the year ahead, we remain confident that we are well positioned for this prolonged downturn.”

Rod Starr
Chief Executive Officer

  

KEY FINANCIALS   Quarter ended   Year ended
(In millions of USD) 31-Dec-15 31-Dec-14   31-Dec-15 31-Dec-14  
Revenues  72.5  93.3    377.5  466.7  
Cost of sales  (53.2)  (68.3)    (191.2)  (286.2)  
EBITDA  1.5  17.1    144.8  150.1  
EBIT (before impairments)  (28.1)  (25.5)    3.1  33.8  
Impairments  (247.5)  (28.7)    (315.4)  (35.1)  
EBIT (after impairments)  (275.4)  (54.2)    (312.3)  (1.3)  
Net Financial Income/(Expenses)  (11.0)  (16.4)    (48.8)  (63.5)  
Net profit / (loss) for the period  (287.3)  (80.0)    (372.2)  (78.6)  
Earnings / (loss) per share (USD)  (4.29)  (0.12)    (5.56)  (0.15)  
Net cash flows from operating activities  28.6  7.9    167.5  157.8  
Total assets (period end)  847.1  1,239.2    847.1  1,239.2  
Total liabilities (period end)  733.3  753.7    733.3  753.7  
Total Equity (period end)  113.8  485.5    113.8  485.5  
Equity Ratio 13% 39%   13% 39%  
PP&E cash investment  1.0  8.7    15.1  52.7  
Multi-client projects cash investment  11.6  12.2    97.0  46.9  
Total cash (period end)  68.5  73.7    68.5  73.7  
Net interest bearing debt (period end)  588.1  609.1    588.1  609.4  


Contacts

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

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

Hans-Peter Burlid, VP Finance & Investor Relations
+971 50 559 8175
hp.burlid@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 nearly 500 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)