Seismic contractor, Polarcus, has recorded a net loss third quarter in a row as the contract revenues went down 33% from the same quarter a year earlier.
The Norwegian company reported a first-quarter loss of $26.4 million or basic and diluted earnings per share of negative $0.04, versus the net profit of approximately $1 million in Q1 2014.
During the Q1 2015, Polarcus booked revenues of $81.1 million, compared to $121.4 million in Q1 2014. $36.7 million went to Multi-Client sales with 80% pre-funding ratio.
Furthermore, following the Q1 results, uncertain market and competitive day rates, the company revealed its decision to cold stack Polarcus Nadia at the end of the first quarter and to relocate the seismic equipment to other vessels in the company’s fleet.
Rod Starr, Chief Executive Officer, said : “The current market environment can be best described as uncertain, as oil companies have continued to reduce or defer spending commitments making for a highly competitive landscape. In response, we have stayed true to the 2015 Agenda I announced in February; building backlog, reducing costs, and managing our balance sheet. This focus included the difficult yet necessary decision to cold stack Polarcus Nadia at the end of the quarter.”