Polarcus announces non-cash impairment charges impacting Q4 2015
9 Feb 2016
Reference is made to the stock exchange release issued on 6 January 2016 in which Polarcus Limited (“Polarcus” or the “Company”) (OSE: PLCS) announced a restructuring plan with support from key stakeholders. Furthermore, the Company announced that it had received a request for information regarding impairment of vessels and seismic equipment from The Financial Supervisory Authority of Norway (“Finanstilsynet”).
The Company has now completed its impairment review using a value in use test based on discounted cash flows. As a result, the Company will record non-cash charges of approximately USD 242 million that will materially impact the Financial Statements for the fourth quarter 2015 and is related to the following two asset classes:
- An impairment of intangible assets of approximately USD 27 million.
- An impairment of the carrying value of the vessels and seismic equipment of approximately USD 215 million.
The impairments are driven by the weak market fundamentals with falling day rates. The impairment charges are expected to be mostly offset by accounting gains in the first quarter 2016 arising from the implementation of the restructuring plan.
The Company will issue its fourth quarter 2015 Financial Statements on 29 February 2016.
Tom Henrik Sundby, CFO
+971 50 708 6480
Hans-Peter Burlid, VP Finance & Investor Relations
+971 50 559 8175
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
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)