Polarcus has reported a first quarter net loss of -$4.2 million on segment revenues of $66.3 million, compared to a net loss of -$5.3 million on revenues of $67.1 million in Q1 2019.
Polarcus has reported a first quarter net loss of -$4.2 million on segment revenues of $66.3 million, compared to a net loss of -$5.3 million on revenues of $67.1 million in Q1 2019.
Q1 segment operating profit of $8.5 million was up from $2.8 million in Q1 2019. Additional revenue was generated by a hybrid streamer-node project acquired by Polarcus using third-party vessels.
Gross cost of sales of $45.2 million in the quarter decreased by 18% compared to $55 million in Q1 2019. Total cash balance was $46.7 million, while vessel utilization was 89%, compared to 92% in Q1 2019.
The company remained upbeat in the face of low oil prices and the impact of the global Covid-19 pandemic. Despite the fact that a seismic acquisition project offshore West Africa was terminated prior to its scheduled completion date and a seismic acquisition project due to commence in Asia Pacific in Q2 2020 was cancelled, the company also announced two new projects since quarter end in North West Europe and Asia Pacific.
‘Our ability to secure two new project awards since quarter end demonstrates that industry activity continues, and E&P companies are placing trust in Polarcus to execute their seismic acquisition plans.
‘Whilst 2020 will be a challenging year for the industry, I am confident that the decisive action taken will provide an effective foundation for Polarcus to manage the current market uncertainty and to position the company to capture an increased level of activity anticipated through 2021-22,’ said Polarcus CEO, Duncan Eley.’
Polarcus’ backlog of $157 million compared to $170 million at the same time last year. The company’s fleet is 50% booked for the remainder of 2020.
‘While many clients remain focused on their seismic acquisition plans, the industry may encounter project deferrals, operational disruptions, and reductions in the size of awarded surveys as a consequence of the low oil price and the Covid-19 pandemic,’ said the company’s release statement.
‘The reshaping of the seismic industry that has occurred, resulting in an increased number of multi-client companies without vessels, has led to a stable industry structure, provided that supply-side discipline continues to respond appropriately to demand levels.’
Meanwhile, Polarcus has been awarded an XArray marine seismic acquisition project in Asia Pacific that is expected to commence in June 2020 with a duration of one month.
