SeaBird Exploration Issues Profit Warning, Appoints New CEO
by Jon Mainwaring
Monday, February 06, 2012
Cyprus-based seismic data specialist SeaBird Exploration announced Monday that it expects to post profits for the fourth quarter of last year that will be lower than previously expected. The firm blamed low utilization of its vessels as well as "multi-client sales" being lower than expected.
The low utilization rate was due to a combination of delayed start-up dates on firm contracts and contracts materializing to a lesser degree than forecasted, said SeaBird.
As a consequence, the firm now expects EBITDA (earnings before interest, taxation, depreciation and amortization) to be in the region of between $0 and $2 million. For its previous quarter, SeaBird reported an EBITDA loss of $3 million.
SeaBird added that the 4Q 2011 results will have an adverse impact on the company's working capital going into 1Q 2012, and that its liquidity is expected to become strained in the first half of 2012.
The firm also announced that it has changed its chief executive officer. The current CEO, Tim Isden, is stepping down with immediate effect, with Dag Reynolds set to take over as CEO by May. Former board member Jan-Eivind Fondal is stepping in as interim CEO in the meantime.
Reynolds comes to the role as executive vice president of EMGS. He was previously CEO of SeaBird Exploration between 2005 and 2007.
"Mr. Reynolds combines an outstanding track record in the industry with in-depth knowledge of the company," said SeaBird Chairman, Tim Isden in a press statement.
"This is a set of competencies we believe will be highly valuable in the company's continued efforts to reposition itself as a high end operator in the seismic market. The board of directors takes the opportunity to thank Mr Isden for his valuable services to the company for many years."
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