Seismic player Polarcus has returned to quarterly profit when compared to first-quarter 2017, despite revenue drop of some 35 percent.
The Oslo-listed company reported net profit for the quarter ended March 31, 2018 of $2.8 million or 1 cent per share, versus loss of $38 million in Q1 2017. Sequentially, the result improved from net loss of $92 million or 60 cents per share.
Net profit increased mainly as a result of reduced impairment charges and an increase in the financial accounting gain on restructuring.
To remind, during 2018 Polarcus completed its financial restructuring, including equity issues with gross proceeds of NOK 340 million, amended debt terms providing the company a debt service runway to 2022 and an increased working capital facility.
A net accounting gain of $20.3 million was recognized during the quarter as a result of the above mentioned restructuring.
Revenues for the quarter dropped to $30.6 million from $47.2 million in Q1 2017. Quarter-on-quarter revenues fell some 18 percent.
Adjusted revenues were at some $40 million, against $37 million same time last year – not impacted by IFRS 15 accounting principle.
Sequentially, vessel utilization increased to 83 percent from 68 percent. Utilization in Q1 2017 was at 72 percent.
Backlog at end-March 2018 was estimated at $150 million.
“Despite our somewhat cautious view on the near-term market, we are positive on the mid- to long-term. The number of square kilometers tendered in Q1 2018 almost doubled compared to Q4 2017. The increase is driven by a higher number oflarger tenders across Africa and Asia Pacific. For the 12-month period ending Q1 2018, tender activity increased by approximately 50% compared to the same period last year. Oil price is significantly higher in 2018 compared to recent years and utilization of the active global 3D seismic fleet has increased substantially since Q4 2017. The positive developments in tender activity, oil price and global fleet utilization are all indications of an improving marine
seismic market,” Duncan Eley, Polarcus CEO.
Subsea World News Staff