SeaBird has decided to reduce costs further and postpone capital spending until the market recovers from the impact of the Covid-19 pandemic.
SeaBird has decided to reduce costs further and postpone capital spending until the market recovers from the impact of the Covid-19 pandemic.
The company has already reported the termination of two OBN surveys off the West African coast and is warning of the delay or cancellation of other confirmed projects. Additional, crew changes for existing projects and mobilization of crew for new projects are being made difficult by travel and immigration restrictions. ‘This may have an impact on operational cost, due to additional salaries and increased travel costs caused by the restrictions,’ the company said.
Contingency plans have been put in place to reduce costs further so that the company can be run at less than $400,000 per month, including all stacking costs, while maintaining ability to operate at least two vessels simultaneously. ‘Based on contract negotiations and clients’ existing plans, management currently has no reason to believe that it will be necessary for the company to execute on its contingency plans,’ it said.
SeaBird has postponed the remaining outfitting of the Fulmar Explorer until markets normalize or the vessel wins a contract. The company has finished preparatory work for rigging Geo Barents. The vessel has been bid for a contract in the Eastern Hemisphere, and rigging will take place upon contract award. The remaining cost for rigging the vessel is estimated at $600,000.
