Second quarter 2015 report – Riding out the storm

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

Highlights in the second quarter 2015:

  • Revenues of USD 91.7 million down 33% from Q2 2014
  • Gross cost of sales of USD 61.6 million down 27%  from Q2 2014
  • EBITDA of USD 38.4 million down 23% from Q2 2014 with increased margin to 42% from 36%
  • Multi-Client prefunding ratio of 76%
  • Improved liquidity position through partial divestment of Multi-Client library

“The seismic market remains highly competitive and the outlook uncertain, but we moved quickly early in the year with our focus on business fundamentals that continues unabated. Our second quarter results are bearing the fruits of that labor; costs are down, backlog is up and liquidity has improved.

This ‘back-to-fundamentals’ strategy includes a clear focus on continued operational excellence and technical innovation. Polarcus employees onshore and offshore have pulled together to demonstrate our industry leadership during these challenging times. Our modern and right-sized seismic fleet continues to deliver rock-solid performance even when undertaking the most complex of projects in challenging remote locations such as the Russian Far East. Additionally, our geophysical experts continue to innovate. Their latest output, XArray(TM), is a combined acquisition and processing solution for delivering improved inline and crossline resolution using real data while retaining the efficiencies of large seismic spreads. This saves both time and cost without compromising data quality.

Looking ahead, we are 100% booked for Q3 and have more than 80% backlog coverage for the remainder of 2015 with the expectation of more to come as several major industry projects are yet to be awarded. Combined with the capital discipline that is now firmly embedded at Polarcus, this will help ensure the Company’s resilience through turbulent times within the sector.”

Rod Starr
Chief Executive Officer

 

Key Financials 

    Quarter ended Six months ended Year ended
(In millions of USD) 30-Jun-15 30-Jun-14   30-Jun-15 30-Jun-14   31-Dec-14  
Revenues  91.7  137.6    172.8  259.0    466.7  
Cost of sales  (45.3)  (80.5)    (83.3)  (155.1)    (286.2)  
EBITDA  38.4  49.9    73.6  89.6    150.1  
EBIT (before impairments)  2.3 26.0   (5.3) 43.6   33.8  
Impairments  (66.8) (2.2)   (68.1) (2.8)   (35.1)  
EBIT (after impairments)  (64.5)  23.8    (73.3)  40.7    (1.3)  
Net Financial Income/(Expenses)  (15.3)  (14.6)    (27.3)  (30.6)    (63.5)  
Net profit / (loss) for the period  (78.3)  9.2    (104.7)  10.2    (78.6)  
Earnings / (loss) per share (USD)  (0.117)  0.018    (0.156)  0.020    (0.145)  
Net cash flows from operating activities  31.9  45.6    83.4  101.5    157.8  
Total assets (period end)  1,127.3  1,297.4    1,127.3  1,297.4    1,239.2  
Total liabilities (period end)  746.4  758.4    746.4  758.4    753.7  
Total Equity (period end)  380.9  539.0    380.9  539.0    485.5  
Equity Ratio 34% 42%   34% 42%   39%  
PP&E cash investment  6.0  17.6    13.0  30.3    52.7  
Multi-client projects cash investment  21.1  5.3    64.1  15.2    46.9  
Total cash (period end)  47.3  92.3    47.3  92.3    73.7  
Net interest bearing debt (period end)  629.2  612.8    629.2  612.8    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 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)