Third quarter 2015 report – Performing in a weak market

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

Highlights in the third quarter 2015:

  • Revenues of USD 132.2 million, up 44% from Q2 2015
  • EBITDA of USD 69.6 million, up 81% from Q2 2015 with increased margin to 53%, up from 42%
  • Cash from operations of USD 55.5 million, up 74% from Q2 2015
  • Multi-Client prefunding ratio of 98%
  • Vessel utilization of 93%
  • Closing main component of the partial Multi-Client library divestment

“Polarcus delivered record results during the third quarter in what is shaping up to be the most severe industry downturn in recent history. The actions we took early in the year with a clear focus on business fundamentals has enabled us to improve the financial performance in this difficult market. We have been able to achieve the industry’s strongest vessel utilization and secure premium rates where the company’s value differentiators are being recognized by clients.

Our 2015 Agenda continues to drive increased market share and also deliver significant cost reductions to improve profitability. These achievements combined with continued exceptional operations across the entire fleet delivered a net profit of USD 19.8 million and a free cash flow of 33.2 million in the third quarter.  

Looking ahead, the market remains uncertain on account of continued low seismic spending by oil companies. Tender activity remains volatile and market rates competitively low. We are well positioned, however, heading into the winter season with 75% booked capacity for the next six months, and we remain confident of our competitiveness in this downturn.”

Rod Starr
Chief Executive Officer


Key Financials

    Quarter ended Nine months ended Year ended
(In millions of USD) 30-Sep-15 30-Sep-14   30-Sep-15 30-Sep-14   31-Dec-14  
Revenues 132.2 114.3   305.0 373.4   466.7  
Cost of sales (54.6) (62.8)   (138.0) (217.9)   (286.2)  
EBITDA 69.6 43.4   143.3 133.0   150.1  
EBIT (before impairments) 36.4 15.7   31.1 59.3   33.8  
Impairments (3.5)   (68.1) (6.4)   (35.1)  
EBIT (after impairments) 36.4 12.2   (36.9) 52.9   (1.3)  
Net Financial Income/(Expenses) (10.5) (16.5)   (37.8) (47.1)   (63.5)  
Net profit / (loss) for the period 19.8 (8.9)   (84.9) 1.3   (78.6)  
Earnings / (loss) per share (USD) 0.030 (0.018)   (0.127) 0.003   (0.145)  
Net cash flows from operating activities 55.5 48.4   138.9 149.9   157.8  
Total assets (period end) 1,136.7 1,341.8   1,136.7 1,341.8   1,239.2  
Total liabilities (period end) 735.8 810.8   735.8 810.8   753.7  
Total Equity (period end) 400.9 531.0   400.9 531.1   485.5  
Equity Ratio 35% 40%   35% 40%   39%  
PP&E cash investment 1.0 13.8   14.1 44.0   52.7  
Multi-client projects cash investment 21.3 19.5   85.4 34.7   46.9  
Total cash (period end) 73.0 142.3   73.0 142.3   73.7  
Net interest bearing debt (period end) 593.2 609.1   593.2 609.1   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 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)